    [104th Congress Public Law 106]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ106.104]

             NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

    [[Page 110 STAT. 186]]

    Public Law 104-106
    104th Congress

                                     An Act

    To authorize appropriations for fiscal year 1996 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, to reform acquisition laws
    and information technology management of the Federal Government, and for
              other purposes. <<NOTE: Feb. 10, 1996 -  [S. 1124]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: National Defense
    Authorization Act for Fiscal Year 1996.>>

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``National Defense Authorization Act
    for Fiscal Year 1996''.

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

        (a) Divisions.--This Act is organized into five 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.
                (4) Division D--Federal Acquisition Reform.
                (5) Division E--Information Technology Management Reform.

        (b) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title.
    Sec. 2. Organization of Act into divisions; table of contents.
    Sec. 3. Congressional defense committees defined.
    Sec. 4. Extension of time for submission of reports.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

    Sec. 111. Procurement of OH-58D Armed Kiowa Warrior helicopters.
    Sec. 112. Repeal of requirements for armored vehicle upgrades.
    Sec. 113. Multiyear procurement of helicopters.

    [[Page 110 STAT. 187]]

    Sec. 114. Report on AH-64D engine upgrades.
    Sec. 115. Requirement for use of previously authorized multiyear
                        procurement authority for Army small arms
                        procurement.

                            Subtitle C--Navy Programs

    Sec. 131. Nuclear attack submarines.
    Sec. 132. Research for advanced submarine technology.
    Sec. 133. Cost limitation for Seawolf submarine program.
    Sec. 134. Repeal of prohibition on backfit of Trident submarines.
    Sec. 135. Arleigh Burke class destroyer program.
    Sec. 136. Acquisition program for crash attenuating seats.
    Sec. 137. T-39N trainer aircraft.
    Sec. 138. Pioneer unmanned aerial vehicle program.

                         Subtitle D--Air Force Programs

    Sec. 141. B-2 aircraft program.
    Sec. 142. Procurement of B-2 bombers.
    Sec. 143. MC-130H aircraft program.

                  Subtitle E--Chemical Demilitarization Program

    Sec. 151. Repeal of requirement to proceed expeditiously with
                        development of chemical demilitarization
                        cryofracture facility at Tooele Army Depot, Utah.
    Sec. 152. Destruction of existing stockpile of lethal chemical agents
                        and munitions.
    Sec. 153. Administration of chemical demilitarization program.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic research and exploratory development.
    Sec. 203. Modifications to Strategic Environmental Research and
                        Development Program.
    Sec. 204. Defense dual use technology initiative.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Space launch modernization.
    Sec. 212. Tactical manned reconnaissance.
    Sec. 213. Joint Advanced Strike Technology (JAST) program.
    Sec. 214. Development of laser program.
    Sec. 215. Navy mine countermeasures program.
    Sec. 216. Space-based infrared system.
    Sec. 217. Defense Nuclear Agency programs.
    Sec. 218. Counterproliferation support program.
    Sec. 219. Nonlethal weapons study.
    Sec. 220. Federally funded research and development centers and
                        university-affiliated research centers.
    Sec. 221. Joint seismic program and global seismic network.
    Sec. 222. Hydra-70 rocket product improvement program.
    Sec. 223. Limitation on obligation of funds until receipt of electronic
                        combat consolidation master plan.
    Sec. 224. Report on reductions in research, development, test, and
                        evaluation.
    Sec. 225. Advanced Field Artillery System (Crusader).
    Sec. 226. Demilitarization of conventional munitions, rockets, and
                        explosives.
    Sec. 227. Defense Airborne Reconnaissance program.

                Subtitle C--Ballistic Missile Defense Act of 1995

    Sec. 231. Short title.
    Sec. 232. Findings.
    Sec. 233. Ballistic Missile Defense policy.
    Sec. 234. Theater Missile Defense architecture.
    Sec. 235. Prohibition on use of funds to implement an international
                        agreement concerning Theater Missile Defense
                        systems.
    Sec. 236. Ballistic Missile Defense cooperation with allies.
    Sec. 237. ABM Treaty defined.

    Sec. 238. Repeal of Missile Defense Act of 1991.

             Subtitle D--Other Ballistic Missile Defense Provisions

    Sec. 251. Ballistic Missile Defense program elements.
    Sec. 252. Testing of Theater Missile Defense interceptors.

    [[Page 110 STAT. 188]]

    Sec. 253. Repeal of missile defense provisions.

             Subtitle E--Miscellaneous Reviews, Studies, and Reports

    Sec. 261. Precision-guided munitions.
    Sec. 262. Review of C<SUP>4</SUP>I by National Research Council.
    Sec. 263. Analysis of consolidation of basic research accounts of
                        military departments.
    Sec. 264. Change in reporting period from calendar year to fiscal year
                        for annual report on certain contracts to colleges
                        and universities.
    Sec. 265. Aeronautical research and test capabilities assessment.

                            Subtitle F--Other Matters

    Sec. 271. Advanced lithography program.
    Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system.
    Sec. 273. States eligible for assistance under Defense Experimental
                        Program To Stimulate Competitive Research.
    Sec. 274. Cruise missile defense initiative.
    Sec. 275. Modification to university research initiative support
                        program.
    Sec. 276. Manufacturing technology program.
    Sec. 277. Five-year plan for consolidation of defense laboratories and
                        test and evaluation centers.
    Sec. 278. Limitation on T-38 avionics upgrade program.
    Sec. 279. Global Positioning System.
    Sec. 280. Revision of authority for providing Army support for the
                        National Science Center for Communications and
                        Electronics.

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 305. Civil Air Patrol.

                       Subtitle B--Depot-Level Activities

    Sec. 311. Policy regarding performance of depot-level maintenance and
                        repair for the Department of Defense.
    Sec. 312. Management of depot employees.
    Sec. 313. Extension of authority for aviation depots and naval shipyards
                        to engage in defense-related production and
                        services.
    Sec. 314. Modification of notification requirement regarding use of core
                        logistics functions waiver.

                      Subtitle C--Environmental Provisions

    Sec. 321. Revision of requirements for agreements for services under
                        environmental restoration program.
    Sec. 322. Addition of amounts creditable to Defense Environmental
                        Restoration Account.
    Sec. 323. Use of Defense Environmental Restoration Account.
    Sec. 324. Revision of authorities relating to restoration advisory
                        boards.
    Sec. 325. Discharges from vessels of the Armed Forces.

       Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 331. Operation of commissary system.
    Sec. 332. Limited release of commissary stores sales information to
                        manufacturers, distributors, and other vendors doing
                        business with Defense Commissary Agency.
    Sec. 333. Economical distribution of distilled spirits by
                        nonappropriated fund instrumentalities.
    Sec. 334. Transportation by commissaries and exchanges to overseas
                        locations.
    Sec. 335. Demonstration project for uniform funding of morale, welfare,
                        and recreation activities at certain military
                        installations.
    Sec. 336. Operation of combined exchange and commissary stores.
    Sec. 337. Deferred payment programs of military exchanges.
    Sec. 338. Availability of funds to offset expenses incurred by Army and
                        Air Force Exchange Service on account of troop
                        reductions in Europe.
    Sec. 339. Study regarding improving efficiencies in operation of
                        military exchanges and other morale, welfare, and
                        recreation activities and commissary stores.

    [[Page 110 STAT. 189]]

    Sec. 340. Repeal of requirement to convert ships' stores to
                        nonappropriated fund instrumentalities.
    Sec. 341. Disposition of excess morale, welfare, and recreation funds.
    Sec. 342. Clarification of entitlement to use of morale, welfare, and
                        recreation facilities by members of reserve
                        components and dependents.

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

    Sec. 351. Competitive procurement of printing and duplication services.
    Sec. 352. Direct vendor delivery system for consumable inventory items
                        of Department of Defense.
    Sec. 353. Payroll, finance, and accounting functions of the Department
                        of Defense.
    Sec. 354. Demonstration program to identify overpayments made to
                        vendors.
    Sec. 355. Pilot program on private operation of defense dependents'
                        schools.
    Sec. 356. Program for improved travel process for the Department of
                        Defense.
    Sec. 357. Increased reliance on private-sector sources for commercial
                        products and services.

             Subtitle F--Miscellaneous Reviews, Studies, and Reports

    Sec. 361. Quarterly readiness reports.
    Sec. 362. Restatement of requirement for semiannual reports to Congress
                        on transfers from high-priority readiness
                        appropriations.
    Sec. 363. Report regarding reduction of costs associated with contract
                        management oversight.
    Sec. 364. Reviews of management of inventory control points and Material
                        Management Standard System.
    Sec. 365. Report on private performance of certain functions performed
                        by military aircraft.
    Sec. 366. Strategy and report on automated information systems of
                        Department of Defense.

                            Subtitle G--Other Matters

    Sec. 371. Codification of Defense Business Operations Fund.
    Sec. 372. Clarification of services and property that may be exchanged
                        to benefit the historical collection of the Armed
                        Forces.
    Sec. 373. Financial management training.
    Sec. 374. Permanent authority for use of proceeds from the sale of
                        certain lost, abandoned, or unclaimed property.
    Sec. 375. Sale of military clothing and subsistence and other supplies
                        of the Navy and Marine Corps.
    Sec. 376. Personnel services and logistical support for certain
                        activities held on military installations.
    Sec. 377. Retention of monetary awards.
    Sec. 378. Provision of equipment and facilities to assist in emergency
                        response actions.
    Sec. 379. Report on Department of Defense military and civil defense
                        preparedness to respond to emergencies resulting
                        from a chemical, biological, radiological, or
                        nuclear attack.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Temporary variation in DOPMA authorized end strength
                        limitations for active duty Air Force and Navy
                        officers in certain grades.
    Sec. 403. Certain general and flag officers awaiting retirement not to
                        be counted.

                           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. Counting of certain active component personnel assigned in
                        support of reserve component training.
    Sec. 414. Increase in number of members in certain grades authorized to
                        serve on active duty in support of the Reserves.
    Sec. 415. Reserves on active duty in support of cooperative threat
                        reduction programs not to be counted.
    Sec. 416. Reserves on active duty for military-to-military contacts and
                        comparable activities not to be counted.

                   Subtitle C--Military Training Student Loads

    Sec. 421. Authorization of training student loads.

                   Subtitle D--Authorization of Appropriations

    [[Page 110 STAT. 190]]

    Sec. 431. Authorization of appropriations for military personnel.
    Sec. 432. Authorization for increase in active-duty end strengths.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    Sec. 501. Joint officer management.
    Sec. 502. Retired grade for officers in grades above major general and
                        rear admiral.
    Sec. 503. Wearing of insignia for higher grade before promotion.
    Sec. 504. Authority to extend transition period for officers selected
                        for early retirement.
    Sec. 505. Army officer manning levels.
    Sec. 506. Authority for medical department officers other than
                        physicians to be appointed as Surgeon General.
    Sec. 507. Deputy Judge Advocate General of the Air Force.
    Sec. 508. Authority for temporary promotions for certain Navy
                        lieutenants with critical skills.
    Sec. 509. Retirement for years of service of Directors of Admissions of
                        Military and Air Force academies.

               Subtitle B--Matters Relating to Reserve Components

    Sec. 511. Extension of certain Reserve officer management authorities.
    Sec. 512. Mobilization income insurance program for members of Ready
                        Reserve.
    Sec. 513. Military technician full-time support program for Army and Air
                        Force reserve components.
    Sec. 514. Revisions to Army Guard Combat Reform Initiative to include
                        Army Reserve under certain provisions and make
                        certain revisions.
    Sec. 515. Active duty associate unit responsibility.
    Sec. 516. Leave for members of reserve components performing public
                        safety duty.
    Sec. 517. Department of Defense funding for National Guard participation
                        in joint disaster and emergency assistance
                        exercises.

                       Subtitle C--Decorations and Awards

    Sec. 521. Award of Purple Heart to persons wounded while held as
                        prisoners of war before April 25, 1962.
    Sec. 522. Authority to award decorations recognizing acts of valor
                        performed in combat during the Vietnam conflict.
    Sec. 523. Military intelligence personnel prevented by secrecy from
                        being considered for decorations and awards.
    Sec. 524. Review regarding upgrading of Distinguished-Service Crosses
                        and Navy Crosses awarded to Asian-Americans and
                        Native American Pacific Islanders for World War II
                        service.
    Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon
                        service in El Salvador.
    Sec. 526. Procedure for consideration of military decorations not
                        previously submitted in timely fashion.

                     Subtitle D--Officer Education Programs

                            Part I--Service Academies

    Sec. 531. Revision of service obligation for graduates of the service
                        academies.
    Sec. 532. Nominations to service academies from Commonwealth of the
                        Northern Marianas Islands.
    Sec. 533. Repeal of requirement for athletic director and
                        nonappropriated fund account for the athletics
                        programs at the service academies.
    Sec. 534. Repeal of requirement for program to test privatization of
                        service academy preparatory schools.

                     Part II--Reserve Officer Training Corps

    Sec. 541. ROTC access to campuses.
    Sec. 542. ROTC scholarships for the National Guard.
    Sec. 543. Delay in reorganization of Army ROTC regional headquarters
                        structure.
    Sec. 544. Duration of field training or practice cruise required under
                        the Senior Reserve Officers' Training Corps program.
    Sec. 545. Active duty officers detailed to ROTC duty at senior military
                        colleges to serve as Commandant and Assistant
                        Commandant of Cadets and as tactical officers.

             Subtitle E--Miscellaneous Reviews, Studies, and Reports

    Sec. 551. Report concerning appropriate forum for judicial review of
                        Department of Defense personnel actions.

    [[Page 110 STAT. 191]]

    Sec. 552. Comptroller General review of proposed Army end strength
                        allocations.
    Sec. 553. Report on manning status of highly deployable support units.
    Sec. 554. Review of system for correction of military records.
    Sec. 555. Report on the consistency of reporting of fingerprint cards
                        and final disposition forms to the Federal Bureau of
                        Investigation.

                            Subtitle F--Other Matters

    Sec. 561. Equalization of accrual of service credit for officers and
                        enlisted members.
    Sec. 562. Army Ranger training.
    Sec. 563. Separation in cases involving extended confinement.
    Sec. 564. Limitations on reductions in medical personnel.
    Sec. 565. Sense of Congress concerning personnel tempo rates.
    Sec. 566. Separation benefits during force reduction for officers of
                        commissioned corps of National Oceanic and
                        Atmospheric Administration.
    Sec. 567. Discharge of members of the Armed Forces who have the HIV-1
                        virus.
    Sec. 568. Revision and codification of Military Family Act and Military
                        Child Care Act.
    Sec. 569. Determination of whereabouts and status of missing persons.
    Sec. 570. Associate Director of Central Intelligence for Military
                        Support.

          Subtitle G--Support for Non-Department of Defense Activities

    Sec. 571. Repeal of certain civil-military programs.
    Sec. 572. Training activities resulting in incidental support and
                        services for eligible organizations and activities
                        outside the Department of Defense.
    Sec. 573. National Guard civilian youth opportunities pilot program.
    Sec. 574. Termination of funding for Office of Civil-Military Programs
                        in Office of the Secretary of Defense.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Military pay raise for fiscal year 1996.
    Sec. 602. Limitation on basic allowance for subsistence for members
                        residing without dependents in Government quarters.
    Sec. 603. Election of basic allowance for quarters instead of assignment
                        to inadequate quarters.
    Sec. 604. Payment of basic allowance for quarters to members in pay
                        grade E-6 who are assigned to sea duty.
    Sec. 605. Limitation on reduction of variable housing allowance for
                        certain members.
    Sec. 606. Clarification of limitation on eligibility for family
                        separation allowance.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. Extension of certain bonuses for reserve forces.
    Sec. 612. Extension of certain bonuses and special pay for nurse officer
                        candidates, registered nurses, and nurse
                        anesthetists.
    Sec. 613. Extension of authority relating to payment of other bonuses
                        and special pays.
    Sec. 614. Codification and extension of special pay for critically short
                        wartime health specialists in the Selected Reserves.
    Sec. 615. Hazardous duty incentive pay for warrant officers and enlisted
                        members serving as air weapons controllers.
    Sec. 616. Aviation career incentive pay.
    Sec. 617. Clarification of authority to provide special pay for nurses.
    Sec. 618. Continuous entitlement to career sea pay for crew members of
                        ships designated as tenders.
    Sec. 619. Increase in maximum rate of special duty assignment pay for
                        enlisted members serving as recruiters.

                Subtitle C--Travel and Transportation Allowances

    Sec. 621. Repeal of requirement regarding calculation of allowances on
                        basis of mileage tables.
    Sec. 622. Departure allowances.
    Sec. 623. Transportation of nondependent child from member's station
                        overseas after loss of dependent status while
                        overseas.
    Sec. 624. Authorization of dislocation allowance for moves in connection
                        with base realignments and closures.

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

    Sec. 631. Effective date for military retiree cost-of-living adjustments
                        for fiscal years 1996, 1997, and 1998.

    [[Page 110 STAT. 192]]

    Sec. 632. Denial of non-regular service retired pay for Reserves
                        receiving certain court-martial sentences.
    Sec. 633. Report on payment of annuities for certain military surviving
                        spouses.
    Sec. 634. Payment of back quarters and subsistence allowances to World
                        War II veterans who served as guerilla fighters in
                        the Philippines.
    Sec. 635. Authority for relief from previous overpayments under minimum
                        income widows program.
    Sec. 636. Transitional compensation for dependents of members of the
                        Armed Forces separated for dependent abuse.

                            Subtitle E--Other Matters

    Sec. 641. Payment to survivors of deceased members for all leave
                        accrued.
    Sec. 642. Repeal of reporting requirements regarding compensation
                        matters.
    Sec. 643. Recoupment of administrative expenses in garnishment actions.
    Sec. 644. Report on extending to junior noncommissioned officers
                        privileges provided for senior noncommissioned
                        officers.
    Sec. 645. Study regarding joint process for determining location of
                        recruiting stations.
    Sec. 646. Automatic maximum coverage under Servicemen's Group Life
                        Insurance.
    Sec. 647. Termination of Servicemen's Group Life Insurance for members
                        of the Ready Reserve who fail to pay premiums.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Modification of requirements regarding routine physical
                        examinations and immunizations under CHAMPUS.
    Sec. 702. Correction of inequities in medical and dental care and death
                        and disability benefits for certain Reserves.
    Sec. 703. Medical care for surviving dependents of retired Reserves who
                        die before age 60.
    Sec. 704. Medical and dental care for members of the Selected Reserve
                        assigned to early deploying units of the Army
                        Selected Reserve.
    Sec. 705. Dental insurance for members of the Selected Reserve.
    Sec. 706. Permanent authority to carry out specialized treatment
                        facility program.

                           Subtitle B--TRICARE Program

    Sec. 711. Definition of TRICARE program.
    Sec. 712. Priority use of military treatment facilities for persons
                        enrolled in managed care initiatives.
    Sec. 713. Staggered payment of enrollment fees for TRICARE program.
    Sec. 714. Requirement of budget neutrality for TRICARE program to be
                        based on entire program.
    Sec. 715. Training in health care management and administration for
                        TRICARE lead agents.
    Sec. 716. Pilot program of individualized residential mental health
                        services.
    Sec. 717. Evaluation and report on TRICARE program effectiveness.
    Sec. 718. Sense of Congress regarding access to health care under
                        TRICARE program for covered beneficiaries who are
                        medicare eligible.

               Subtitle C--Uniformed Services Treatment Facilities

    Sec. 721. Delay of termination of status of certain facilities as
                        Uniformed Services Treatment Facilities.
    Sec. 722. Limitation on expenditures to support Uniformed Services
                        Treatment Facilities.
    Sec. 723. Application of CHAMPUS payment rules in certain cases.
    Sec. 724. Application of Federal Acquisition Regulation to participation
                        agreements with Uniformed Services Treatment
                        Facilities.
    Sec. 725. Development of plan for integrating Uniformed Services
                        Treatment Facilities in managed care programs of
                        Department of Defense.
    Sec. 726. Equitable implementation of uniform cost sharing requirements
                        for Uniformed Services Treatment Facilities.
    Sec. 727. Elimination of unnecessary annual reporting requirement
                        regarding Uniformed Services Treatment Facilities.

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

    Sec. 731. Maximum allowable payments to individual health-care providers
                        under CHAMPUS.
    Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss
                        of CHAMPUS eligibility.

    [[Page 110 STAT. 193]]

    Sec. 733. Personal services contracts for medical treatment facilities
                        of the Coast Guard.
    Sec. 734. Identification of third-party payer situations.
    Sec. 735. Redesignation of Military Health Care Account as Defense
                        Health Program Account and two-year availability of
                        certain account funds.
    Sec. 736. Expansion of financial assistance program for health-care
                        professionals in reserve components to include
                        dental specialties.
    Sec. 737. Applicability of limitation on prices of pharmaceuticals
                        procured for Coast Guard.
    Sec. 738. Restriction on use of Department of Defense facilities for
                        abortions.

                            Subtitle E--Other Matters

    Sec. 741. Triservice nursing research.
    Sec. 742. Termination of program to train military psychologists to
                        prescribe psychotropic medications.
    Sec. 743. Waiver of collection of payments due from certain persons
                        unaware of loss of CHAMPUS eligibility.
    Sec. 744. Demonstration program to train military medical personnel in
                        civilian shock trauma units.
    Sec. 745. Study regarding Department of Defense efforts to determine
                        appropriate force levels of wartime medical
                        personnel.
    Sec. 746. Report on improved access to military health care for covered
                        beneficiaries entitled to medicare.
    Sec. 747. Report on effect of closure of Fitzsimons Army Medical Center,
                        Colorado, on provision of care to military
                        personnel, retired military personnel, and their
                        dependents.
    Sec. 748. Sense of Congress on continuity of health care services for
                        covered beneficiaries adversely affected by closures
                        of military medical treatment facilities.
    Sec. 749. State recognition of military advance medical directives.

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

                         Subtitle A--Acquisition Reform

    Sec. 801. Inapplicability of limitation on expenditure of appropriations
                        to contracts at or below simplified acquisition
                        threshold.
    Sec. 802. Authority to delegate contracting authority.
    Sec. 803. Control in procurements of critical aircraft and ship spare
                        parts.
    Sec. 804. Fees for certain testing services.
    Sec. 805. Coordination and communication of defense research activities.
    Sec. 806. Addition of certain items to domestic source limitation.
    Sec. 807. Encouragement of use of leasing authority.
    Sec. 808. Cost reimbursement rules for indirect costs attributable to
                        private sector work of defense contractors.
    Sec. 809. Subcontracts for ocean transportation services.
    Sec. 810. Prompt resolution of audit recommendations.
    Sec. 811. Test program for negotiation of comprehensive subcontracting
                        plans.
    Sec. 812. Procurement of items for experimental or test purposes.
    Sec. 813. Use of funds for acquisition of designs, processes, technical
                        data, and computer software.
    Sec. 814. Independent cost estimates for major defense acquisition
                        programs.
    Sec. 815. Construction, repair, alteration, furnishing, and equipping of
                        naval vessels.

                            Subtitle B--Other Matters

    Sec. 821. Procurement technical assistance programs.
    Sec. 822. Defense facility-wide pilot program.
    Sec. 823. Treatment of Department of Defense cable television franchise
                        agreements.
    Sec. 824. Extension of pilot mentor-protege program.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                           Subtitle A--General Matters

    Sec. 901. Organization of the Office of the Secretary of Defense.
    Sec. 902. Reduction in number of Assistant Secretary of Defense
                        positions.
    Sec. 903. Deferred repeal of various statutory positions and offices in
                        Office of the Secretary of Defense.
    Sec. 904. Redesignation of the position of Assistant to the Secretary of
                        Defense for Atomic Energy.

    [[Page 110 STAT. 194]]

    Sec. 905. Joint Requirements Oversight Council.
    Sec. 906. Restructuring of Department of Defense acquisition
                        organization and workforce.
    Sec. 907. Report on Nuclear Posture Review and on plans for nuclear
                        weapons management in event of abolition of
                        Department of Energy.
    Sec. 908. Redesignation of Advanced Research Projects Agency.

                        Subtitle B--Financial Management

    Sec. 911. Transfer authority regarding funds available for foreign
                        currency fluctuations.
    Sec. 912. Defense Modernization Account.
    Sec. 913. Designation and liability of disbursing and certifying
                        officials.
    Sec. 914. Fisher House trust funds.
    Sec. 915. Limitation on use of authority to pay for emergency and
                        extraordinary expenses.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Incorporation of classified annex.
    Sec. 1003. Improved funding mechanisms for unbudgeted operations.
    Sec. 1004. Operation Provide Comfort.
    Sec. 1005. Operation Enhanced Southern Watch.
    Sec. 1006. Authority for obligation of certain unauthorized fiscal year
                          1995 defense appropriations.
    Sec. 1007. Authorization of prior emergency supplemental appropriations
                          for fiscal year 1995.
    Sec. 1008. Authorization reductions to reflect savings from revised
                          economic assumptions.

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1011. Iowa class battleships.
    Sec. 1012. Transfer of naval vessels to certain foreign countries.
    Sec. 1013. Contract options for LMSR vessels.
    Sec. 1014. National Defense Reserve Fleet.
    Sec. 1015. Naval salvage facilities.
    Sec. 1016. Vessels subject to repair under phased maintenance contracts.
    Sec. 1017. Clarification of requirements relating to repairs of vessels.
    Sec. 1018. Sense of Congress concerning naming of amphibious ships.
    Sec. 1019. Sense of Congress concerning naming of naval vessel.
    Sec. 1020. Transfer of riverine patrol craft.

                       Subtitle C--Counter-Drug Activities

    Sec. 1021. Revision and clarification of authority for Federal support
                          of drug interdiction and counter-drug activities
                          of the National Guard.

                         Subtitle D--Civilian Personnel

    Sec. 1031. Management of Department of Defense civilian personnel.
    Sec. 1032. Conversion of military positions to civilian positions.
    Sec. 1033. Elimination of 120-day limitation on details of certain
                          employees.
    Sec. 1034. Authority for civilian employees of Department of Defense to
                          participate voluntarily in reductions in force.
    Sec. 1035. Authority to pay severance payments in lump sums.
    Sec. 1036. Continued health insurance coverage.
    Sec. 1037. Revision of authority for appointments of involuntarily
                          separated military reserve technicians.
    Sec. 1038. Wearing of uniform by National Guard technicians.
    Sec. 1039. Military leave for military reserve technicians for certain
                          duty overseas.
    Sec. 1040. Personnel actions involving employees of nonappropriated fund
                          instrumentalities.
    Sec. 1041. Coverage of nonappropriated fund employees under authority
                          for flexible and compressed work schedules.
    Sec. 1042. Limitation on provision of overseas living quarters
                          allowances for nonappropriated fund
                          instrumentality employees.
    Sec. 1043. Elections relating to retirement coverage.
    Sec. 1044. Extension of temporary authority to pay civilian employees
                          with respect to the evacuation from Guantanamo,
                          Cuba.

                Subtitle E--Miscellaneous Reporting Requirements

    Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard
                          and Reserve components.

    [[Page 110 STAT. 195]]

    Sec. 1052. Report on desirability and feasibility of providing authority
                          for use of funds derived from recovered losses
                          resulting from contractor fraud.
    Sec. 1053. Report of national policy on protecting the national
                          information infrastructure against strategic
                          attacks.
    Sec. 1054. Report on Department of Defense boards and commissions.
    Sec. 1055. Date for submission of annual report on special access
                          programs.

       Subtitle F--Repeal of Certain Reporting and Other Requirements and
                                   Authorities

    Sec. 1061. Repeal of miscellaneous provisions of law.
    Sec. 1062. Reports required by title 10, United States Code.
    Sec. 1063. Reports required by defense authorization and appropriations
                          Acts.
    Sec. 1064. Reports required by other provisions of law.

              Subtitle G--Department of Defense Education Programs

    Sec. 1071. Continuation of Uniformed Services University of the Health
                          Sciences.
    Sec. 1072. Additional graduate schools and programs at Uniformed
                          Services University of the Health Sciences.
    Sec. 1073. Funding for adult education programs for military personnel
                          and dependents outside the United States.
    Sec. 1074. Assistance to local educational agencies that benefit
                          dependents of members of the Armed Forces and
                          Department of Defense civilian employees.
    Sec. 1075. Sharing of personnel of Department of Defense domestic
                          dependent schools and defense dependents'
                          education system.
    Sec. 1076. Increase in reserve component Montgomery GI Bill educational
                          assistance allowance with respect to skills or
                          specialties for which there is a critical shortage
                          of personnel.
    Sec. 1077. Date for annual report on reserve component Montgomery GI
                          Bill educational assistance program.
    Sec. 1078. Scope of education programs of Community College of the Air
                          Force.
    Sec. 1079. Amendments to education loan repayment programs.

                            Subtitle H--Other Matters

    Sec. 1081. National defense technology and industrial base, defense
                          reinvestment, and defense conversion programs.
    Sec. 1082. Ammunition industrial base.
    Sec. 1083. Policy concerning excess defense industrial capacity.
    Sec. 1084. Sense of Congress concerning access to secondary school
                          student information for recruiting purposes.
    Sec. 1085. Disclosure of information concerning unaccounted for United
                          States personnel from the Korean Conflict, the
                          Vietnam era, and the Cold War.
    Sec. 1086. Operational support airlift aircraft fleet.
    Sec. 1087. Civil Reserve Air Fleet.
    Sec. 1088. Damage or loss to personal property due to emergency
                          evacuation or extraordinary circumstances.
    Sec. 1089. Authority to suspend or terminate collection actions against
                          deceased members.
    Sec. 1090. Check cashing and exchange transactions for dependents of
                          United States Government personnel.
    Sec. 1091. Designation of National Maritime Center.
    Sec. 1092. Sense of Congress regarding historic preservation of Midway
                          Islands.
    Sec. 1093. Sense of Senate regarding Federal spending.
    Sec. 1094. Extension of authority for vessel war risk insurance.

                   TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

    Sec. 1101. Short title.
    Sec. 1102. References to Uniform Code of Military Justice.

                              Subtitle A--Offenses

    Sec. 1111. Refusal to testify before court-martial.
    Sec. 1112. Flight from apprehension.
    Sec. 1113. Carnal knowledge.

                              Subtitle B--Sentences

    Sec. 1121. Effective date for forfeitures of pay and allowances and
                          reductions in grade by sentence of court-martial.
    Sec. 1122. Required forfeiture of pay and allowances during confinement.
    Sec. 1123. Deferment of confinement.

                   Subtitle C--Pretrial and Post-Trial Actions

    [[Page 110 STAT. 196]]

    Sec. 1131. Article 32 investigations.
    Sec. 1132. Submission of matters to the convening authority for
                          consideration.
    Sec. 1133. Commitment of accused to treatment facility by reason of lack
                          of mental capacity or mental responsibility.

                          Subtitle D--Appellate Matters

    Sec. 1141. Appeals by the United States.
    Sec. 1142. Repeal of termination of authority for Chief Justice of the
                          United States to designate Article III judges for
                          temporary service on Court of Appeals for the
                          Armed Forces.

                            Subtitle E--Other Matters

    Sec. 1151. Advisory committee on criminal law jurisdiction over
                          civilians accompanying the Armed Forces in time of
                          armed conflict.
    Sec. 1152. Time after accession for initial instruction in the Uniform
                          Code of Military Justice.
    Sec. 1153. Technical amendment.

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

    Sec. 1201. Specification of Cooperative Threat Reduction programs.
    Sec. 1202. Fiscal year 1996 funding allocations.
    Sec. 1203. Prohibition on use of funds for peacekeeping exercises and
                          related activities with Russia.
    Sec. 1204. Revision to authority for assistance for weapons destruction.
    Sec. 1205. Prior notice to Congress of obligation of funds.
    Sec. 1206. Report on accounting for United States assistance.
    Sec. 1207. Limitation on assistance to nuclear weapons scientists of
                          former Soviet Union.
    Sec. 1208. Limitations relating to offensive biological warfare program
                          of Russia.
    Sec. 1209. Limitation on use of funds for chemical weapons destruction
                          facility.

                  TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                       Subtitle A--Peacekeeping Provisions

    Sec. 1301. Limitation on use of Department of Defense funds for United
                          States share of costs of United Nations
                          peacekeeping activities.

                  Subtitle B--Humanitarian Assistance Programs

    Sec. 1311. Overseas humanitarian, disaster, and civic aid programs.
    Sec. 1312. Humanitarian assistance.
    Sec. 1313. Landmine clearance program.

                Subtitle C--Arms Exports and Military Assistance

    Sec. 1321. Defense export loan guarantees.
    Sec. 1322. National security implications of United States export
                          control policy.
    Sec. 1323. Department of Defense review of export licenses for certain
                          biological pathogens.
    Sec. 1324. Annual reports on improving export control mechanisms and on
                          military assistance.
    Sec. 1325. Report on personnel requirements for control of transfer of
                          certain weapons.

      Subtitle D--Burdensharing and Other Cooperative Activities Involving
                                 Allies and NATO

    Sec. 1331. Accounting for burdensharing contributions.
    Sec. 1332. Authority to accept contributions for expenses of relocation
                          within host nation of United States Armed Forces
                          overseas.
    Sec. 1333. Revised goal for allied share of costs for United States
                          installations in Europe.
    Sec. 1334. Exclusion of certain forces from European end strength
                          limitation.
    Sec. 1335. Cooperative research and development agreements with NATO
                          organizations.
    Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

                            Subtitle E--Other Matters

    Sec. 1341. Prohibition on financial assistance to terrorist countries.
    Sec. 1342. Judicial assistance to the International Tribunal for
                          Yugoslavia and to the International Tribunal for
                          Rwanda.

    [[Page 110 STAT. 197]]

    Sec. 1343. Semiannual reports concerning United States-People's Republic
                          of China Joint Defense Conversion Commission.

                         TITLE XIV--ARMS CONTROL MATTERS

    Sec. 1401. Revision of definition of landmine for purposes of landmine
                          export moratorium.
    Sec. 1402. Reports on moratorium on use by Armed Forces of antipersonnel
                          landmines.
    Sec. 1403. Extension and amendment of counter-proliferation authorities.
    Sec. 1404. Limitation on retirement or dismantlement of strategic
                          nuclear delivery systems.
    Sec. 1405. Congressional findings and sense of Congress concerning
                          treaty violations.
    Sec. 1406. Sense of Congress on ratification of Chemical Weapons
                          Convention and START II Treaty.
    Sec. 1407. Implementation of arms control agreements.
    Sec. 1408. Iran and Iraq arms nonproliferation.

                   TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

    Sec. 1501. Amendments related to Reserve Officer Personnel Management
                          Act.
    Sec. 1502. Amendments to reflect name change of Committee on Armed
                          Services of the House of Representatives.
    Sec. 1503. Miscellaneous amendments to title 10, United States Code.
    Sec. 1504. Miscellaneous amendments to annual defense authorization
                          Acts.
    Sec. 1505. Miscellaneous amendments to other laws.
    Sec. 1506. Coordination with other amendments.

    TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS
                                     SAFETY

    Sec. 1601. Short title.

             Subtitle A--Establishment and Operation of Corporation

    Sec. 1611. Establishment of the Corporation.
    Sec. 1612. Conduct of Civilian Marksmanship Program.
    Sec. 1613. Eligibility for participation in Civilian Marksmanship
                          Program.
    Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the
                          Corporation.
    Sec. 1615. Transfer of firearms and ammunition from the Army to the
                          Corporation.
    Sec. 1616. Reservation by the Army of firearms and ammunition for the
                          Corporation.
    Sec. 1617. Army logistical support for the program.
    Sec. 1618. General authorities of the Corporation.
    Sec. 1619. Distribution of Corporate assets in event of dissolution.

                       Subtitle B--Transitional Provisions

    Sec. 1621. Transfer of funds and property to the Corporation.
    Sec. 1622. Continuation of eligibility for certain civil service
                          benefits for former Federal employees of Civilian
                          Marksmanship Program.
    Sec. 1623. Certification of completion of transition.
    Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship
                          Program by the Army.

                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.

                                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. Revision of fiscal year 1995 authorization of appropriations
                          to clarify availability of funds for large
                          anechoic chamber facility, Patuxent River Naval
                          Warfare Center, Maryland.

    [[Page 110 STAT. 198]]

    Sec. 2206. Authority to carry out land acquisition project, Hampton
                          Roads, Virginia.
    Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.
    Sec. 2208. Acquisition or construction of military family housing in
                          vicinity of San Diego, California.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
                          projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Retention of accrued interest on funds deposited for
                          construction of family housing, Scott Air Force
                          Base, Illinois.

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
                          projects.
    Sec. 2402. Military family housing private investment.
    Sec. 2403. Improvements to military family housing units.
    Sec. 2404. Energy conservation projects.
    Sec. 2405. Authorization of appropriations, Defense Agencies.
    Sec. 2406. Limitations on use of Department of Defense Base Closure
                          Account 1990.
    Sec. 2407. Modification of authority to carry out fiscal year 1995
                          projects.
    Sec. 2408. Reduction in amounts authorized to be appropriated for fiscal
                          year 1994 contingency construction projects.

          TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

    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. Reduction in amount authorized to be appropriated for fiscal
                          year 1994 Air National Guard Projects.
    Sec. 2603. Correction in authorized uses of funds for Army National
                          Guard projects in Mississippi.

             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 1993
                          projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 1992
                          projects.

                        TITLE XXVIII--GENERAL PROVISIONS

              Subtitle A--Military Housing Privatization Initiative

    Sec. 2801. Alternative authority for construction and improvement of
                          military housing.
    Sec. 2802. Expansion of authority for limited partnerships for
                          development of military family housing.

      Subtitle B--Other Military Construction Program and Military Family
                                 Housing Changes

    Sec. 2811. Special threshold for unspecified minor construction projects
                          to correct life, health, or safety deficiencies.
    Sec. 2812. Clarification of scope of unspecified minor construction
                          authority.
    Sec. 2813. Temporary authority to waive net floor area limitation for
                          family housing acquired in lieu of construction.
    Sec. 2814. Reestablishment of authority to waive net floor area
                          limitation on acquisition by purchase of certain
                          military family housing.
    Sec. 2815. Temporary authority to waive limitations on space by pay
                          grade for military family housing units.
    Sec. 2816. Rental of family housing in foreign countries.
    Sec. 2817. Clarification of scope of report requirement on cost
                          increases under contracts for military family
                          housing construction.
    Sec. 2818. Authority to convey damaged or deteriorated military family
                          housing.
    Sec. 2819. Energy and water conservation savings for the Department of
                          Defense.
    Sec. 2820. Extension of authority to enter into leases of land for
                          special operations activities.

    [[Page 110 STAT. 199]]

    Sec. 2821. Disposition of amounts recovered as a result of damage to
                          real property.
    Sec. 2822. Pilot program to provide interest rate buy down authority on
                          loans for housing within housing shortage areas at
                          military installations.

                Subtitle C--Defense Base Closure and Realignment

    Sec. 2831. Deposit of proceeds from leases of property located at
                          installations being closed or realigned.
    Sec. 2832. In-kind consideration for leases at installations to be
                          closed or realigned.
    Sec. 2833. Interim leases of property approved for closure or
                          realignment.
    Sec. 2834. Authority to lease property requiring environmental
                          remediation at
                          installations approved for closure or realignment.
    Sec. 2835. Final funding for Defense Base Closure and Realignment
                          Commission.
    Sec. 2836. Exercise of authority delegated by the Administrator of
                          General Services.
    Sec. 2837. Lease back of property disposed from installations approved
                          for closure or realignment.
    Sec. 2838. Improvement of base closure and realignment process regarding
                          disposal of property.
    Sec. 2839. Agreements for certain services at installations being
                          closed.
    Sec. 2840. Authority to transfer property at military installations to
                          be closed to persons who construct or provide
                          military family housing.
    Sec. 2841. Use of single base closure authorities for disposal of
                          property and facilities at Fort Holabird,
                          Maryland.

                     Subtitle D--Land Conveyances Generally

                            Part I--Army Conveyances

    Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.
    Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.
    Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens
                          Military Reservation, Massachusetts.
    Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.
    Sec. 2855. Land exchange, Fort Lewis, Washington.
    Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.
    Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount Carmel,
                          Tennessee.
    Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown,
                          Indiana.
    Sec. 2859. Land conveyance, Fort Ord, California.
    Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin,
                          California.
    Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.
    Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan,
                          Illinois.
    Sec. 2863. Land conveyance, property underlying Cummins Apartment
                          Complex, Fort Holabird, Maryland.
    Sec. 2864. Modification of existing land conveyance, Army property,
                          Hamilton Air Force Base, California.

                            Part II--Navy Conveyances

    Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve
                          Plant, Calverton, New York.
    Sec. 2866. Modification of land conveyance, Naval Weapons Industrial
                          Reserve Plant, Calverton, New York.
    Sec. 2867. Land conveyance alternative to existing lease authority,
                          Naval Supply Center, Oakland, California.
    Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant,
                          McGregor, Texas.
    Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis,
                          Tennessee.
    Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
    Sec. 2871. Land conveyance, Naval Communications Station, Stockton,
                          California.
    Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air
                          Station, Miramar, California.

                         Part III--Air Force Conveyances

    Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South
                          Carolina.
    Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.
    Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.
    Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.
    Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

                Subtitle E--Land Conveyances Involving Utilities

    [[Page 110 STAT. 200]]

    Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New
                          Jersey.
    Sec. 2882. Conveyance of water and wastewater treatment plants, Fort
                          Gordon, Georgia.
    Sec. 2883. Conveyance of electricity distribution system, Fort Irwin,
                          California.
    Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

                            Subtitle F--Other Matters

    Sec. 2891. Authority to use funds for certain educational purposes.
    Sec. 2892. Department of Defense Laboratory Revitalization Demonstration
                          Program.
    Sec. 2893. Authority for Port Authority of State of Mississippi to use
                          Navy property at Naval Construction Battalion
                          Center, Gulfport, Mississippi.
    Sec. 2894. Prohibition on joint use of Naval Air Station and Marine
                          Corps Air Station, Miramar, California.
    Sec. 2895. Report regarding Army water craft support facilities and
                          activities.
    Sec. 2896. Residual value reports.
    Sec. 2897. Sense of Congress and report regarding Fitzsimons Army
                          Medical Center, Colorado.

      TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT,
                                    ILLINOIS

    Sec. 2901. Short title.
    Sec. 2902. Definitions.

       Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin
                           National Tallgrass Prairie

    Sec. 2911. Principles of transfer.
    Sec. 2912. Transfer of management responsibilities and jurisdiction over
                          Arsenal.
    Sec. 2913. Responsibility and liability.

    Sec. 2914. Establishment and administration of Midewin National
               Tallgrass Prairie.

    Sec. 2915. Special management requirements for Midewin National
                          Tallgrass Prairie.
    Sec. 2916. Special transfer rules for certain Arsenal parcels intended
                          for MNP.

      Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition
                                      Plant

    Sec. 2921. Conveyance of certain real property at Arsenal for a national
                          cemetery.
    Sec. 2922. Conveyance of certain real property at Arsenal for a county
                          landfill.
    Sec. 2923. Conveyance of certain real property at Arsenal for industrial
                          parks.

                      Subtitle C--Miscellaneous Provisions

    Sec. 2931. Degree of environmental cleanup.
    Sec. 2932. Retention of property used for environmental cleanup.

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

                    Subtitle B--Recurring General Provisions

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

    [[Page 110 STAT. 201]]

    Sec. 3128. Availability of funds.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Authority to conduct program relating to fissile materials.
    Sec. 3132. National Ignition Facility.
    Sec. 3133. Tritium production program.
    Sec. 3134. Payment of penalties.
    Sec. 3135. Fissile materials disposition.
    Sec. 3136. Tritium recycling.
    Sec. 3137. Manufacturing infrastructure for refabrication and
                          certification of nuclear weapons stockpile.
    Sec. 3138. Hydronuclear experiments.
    Sec. 3139. Limitation on authority to conduct hydronuclear tests.
    Sec. 3140. Fellowship program for development of skills critical to the
                          Department of Energy nuclear weapons complex.
    Sec. 3141. Limitation on use of funds for certain research and
                          development purposes.
    Sec. 3142. Processing and treatment of high-level nuclear waste and
                          spent nuclear fuel rods.
    Sec. 3143. Protection of workers at nuclear weapons facilities.
    Sec. 3144. Department of Energy Declassification Productivity
                          Initiative.

                            Subtitle D--Other Matters

    Sec. 3151. Report on foreign tritium purchases.
    Sec. 3152. Study on nuclear test readiness postures.
    Sec. 3153. Master plan for the certification, stewardship, and
                          management of warheads in the nuclear weapons
                          stockpile.
    Sec. 3154. Prohibition on international inspections of Department of
                          Energy facilities unless protection of restricted
                          data is certified.
    Sec. 3155. Review of certain documents before declassification and
                          release.
    Sec. 3156. Accelerated schedule for environmental restoration and waste
                          management activities.
    Sec. 3157. Sense of Congress regarding certain environmental restoration
                          requirements.
    Sec. 3158. Responsibility for Defense Programs Emergency Response
                          Program.
    Sec. 3159. Requirements for Department of Energy weapons activities
                          budgets for fiscal years after fiscal year 1996.
    Sec. 3160. Report on hydronuclear testing.
    Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los
                          Alamos, New Mexico.
    Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

             Subtitle A--Authorization of Disposals and Use of Funds

    Sec. 3301. Definitions.
    Sec. 3302. Authorized uses of stockpile funds.
    Sec. 3303. Disposal of chromite and manganese ores and chromium ferro
                          and manganese metal electrolytic.
    Sec. 3304. Restrictions on disposal of manganese ferro.
    Sec. 3305. Titanium initiative to support battle tank upgrade program.

                         Subtitle B--Programmatic Change

    Sec. 3311. Transfer of excess defense-related materials to stockpile for
                          disposal.

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

             Subtitle A--Administration of Naval Petroleum Reserves

    Sec. 3401. Authorization of appropriations.
    Sec. 3402. Price requirement on sale of certain petroleum during fiscal
                          year 1996.
    Sec. 3403. Extension of operating contract for Naval Petroleum Reserve
                          Num
                          bered 1.

                   Subtitle B--Sale of Naval Petroleum Reserve

    Sec. 3411. Definitions.
    Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.
    Sec. 3413. Effect of sale of reserve.

    [[Page 110 STAT. 202]]

    Sec. 3414. Conditions on sale process.
    Sec. 3415. Treatment of State of California claim regarding reserve.
    Sec. 3416. Study of future of other naval petroleum reserves.

                       TITLE XXXV--PANAMA CANAL COMMISSION

                   Subtitle A--Authorization of Appropriations

    Sec. 3501. Short title.
    Sec. 3502. Authorization of expenditures.
    Sec. 3503. Expenditures in accordance with other laws.

       Subtitle B--Reconstitution of Commission as Government Corporation

    Sec. 3521. Short title.
    Sec. 3522. Reconstitution of Commission as Government corporation.
    Sec. 3523. Supervisory Board.
    Sec. 3524. General and specific powers of Commission.
    Sec. 3525. Congressional review of budget.
    Sec. 3526. Audits.
    Sec. 3527. Prescription of measurement rules and rates of tolls.
    Sec. 3528. Procedures for changes in rules of measurement and rates of
                          tolls.
    Sec. 3529. Miscellaneous technical amendments.
    Sec. 3530. Conforming amendment to title 31, United States Code.

                     DIVISION D--FEDERAL ACQUISITION REFORM

    Sec. 4001. Short title.

                             TITLE XLI--COMPETITION

    Sec. 4101. Efficient competition.
    Sec. 4102. Efficient approval procedures.
    Sec. 4103. Efficient competitive range determinations.
    Sec. 4104. Preaward debriefings.
    Sec. 4105. Design-build selection procedures.

                          TITLE XLII--COMMERCIAL ITEMS

    Sec. 4201. Commercial item exception to requirement for certified cost
                          or pricing data.
    Sec. 4202. Application of simplified procedures to certain commercial
                          items.
    Sec. 4203. Inapplicability of certain procurement laws to commercially
                          available off-the-shelf items.
    Sec. 4204. Amendment of commercial items definition.
    Sec. 4205. Inapplicability of cost accounting standards to contracts and
                          subcontracts for commercial items.

                    TITLE XLIII--ADDITIONAL REFORM PROVISIONS

              Subtitle A--Additional Acquisition Reform Provisions

    Sec. 4301. Elimination of certain certification requirements.
    Sec. 4302. Authorities conditioned on FACNET capability.
    Sec. 4303. International competitiveness.
    Sec. 4304. Procurement integrity.
    Sec. 4305. Further acquisition streamlining provisions.
    Sec. 4306. Value engineering for Federal agencies.
    Sec. 4307. Acquisition workforce.
    Sec. 4308. Demonstration project relating to certain personnel
                          management policies and procedures.
    Sec. 4309. Cooperative purchasing.
    Sec. 4310. Procurement notice technical amendment.
    Sec. 4311. Micro-purchases without competitive quotations.

                        Subtitle B--Technical Amendments

    Sec. 4321. Amendments related to Federal Acquisition Streamlining Act of
                          1994.
    Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

                 TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

    Sec. 4401. Effective date and applicability.
    Sec. 4402. Implementing regulations.

              DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

    Sec. 5001. Short title.

    [[Page 110 STAT. 203]]

    Sec. 5002. Definitions.

       TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                          Subtitle A--General Authority

    Sec. 5101. Repeal of central authority of the Administrator of General
                          Services.

           Subtitle B--Director of the Office of Management and Budget

    Sec. 5111. Responsibility of Director.
    Sec. 5112. Capital planning and investment control.
    Sec. 5113. Performance-based and results-based management.

                         Subtitle C--Executive Agencies

    Sec. 5121. Responsibilities.
    Sec. 5122. Capital planning and investment control.
    Sec. 5123. Performance and results-based management.
    Sec. 5124. Acquisitions of information technology.
    Sec. 5125. Agency Chief Information Officer.
    Sec. 5126. Accountability.
    Sec. 5127. Significant deviations.
    Sec. 5128. Interagency support.

                       Subtitle D--Other Responsibilities

    Sec. 5131. Responsibilities regarding efficiency, security, and privacy
                          of Federal computer systems.
    Sec. 5132. Sense of Congress.

                      Subtitle E--National Security Systems

    Sec. 5141. Applicability to national security systems.
    Sec. 5142. National security system defined.

          TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

    Sec. 5201. Procurement procedures.
    Sec. 5202. Incremental acquisition of information technology.

          TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                      Subtitle A--Conduct of Pilot Programs

    Sec. 5301. Authority to conduct pilot programs.
    Sec. 5302. Evaluation criteria and plans.
    Sec. 5303. Report.
    Sec. 5304. Recommended legislation.
    Sec. 5305. Rule of construction.

                       Subtitle B--Specific Pilot Programs

    Sec. 5311. Share-in-savings pilot program.
    Sec. 5312. Solutions-based contracting pilot program.

         TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

    Sec. 5401. On-line multiple award schedule contracting.
    Sec. 5402. Identification of excess and surplus computer equipment.
    Sec. 5403. Access of certain information in information systems to the
                          directory established under section 4101 of title
                          44, United States Code.

       TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

    Sec. 5501. Period for processing protests.
    Sec. 5502. Availability of funds following GAO resolution of challenge
                          to contracting action.

                  TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

    Sec. 5601. Amendments to title 10, United States Code.
    Sec. 5602. Amendments to title 28, United States Code.
    Sec. 5603. Amendment to title 31, United States Code.

    [[Page 110 STAT. 204]]

    Sec. 5604. Amendments to title 38, United States Code.
    Sec. 5605. Provisions of title 44, United States Code, relating to
                          paperwork reduction.
    Sec. 5606. Amendment to title 49, United States Code.
    Sec. 5607. Other laws.
    Sec. 5608. Clerical amendments.

          TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF
                                  CONSTRUCTION

    Sec. 5701. Effective date.
    Sec. 5702. Savings provisions.
    Sec. 5703. Rules of construction.

    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.

    SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

        In the case of any provision of this Act, or any amendment made by a
    provision of this Act, requiring the submission of a report to Congress
    (or any committee of Congress), that report shall be submitted not later
    than the later of--
                (1) the date established for submittal of the report in such
            provision or amendment; or
                (2) the date that is 45 days after the date of the enactment
            of this Act.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for procurement for the Army as follows:
                (1) For aircraft, $1,558,805,000.
                (2) For missiles, $865,555,000.
                (3) For weapons and tracked combat vehicles, $1,652,745,000.
                (4) For ammunition, $1,093,991,000.
                (5) For other procurement, $2,763,443,000.

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for fiscal
    year 1996 for procurement for the Navy as follows:
                (1) For aircraft, $4,572,394,000.
                (2) For weapons, including missiles and torpedoes,
            $1,659,827,000.
                (3) For shipbuilding and conversion, $6,643,958,000.
                (4) For other procurement, $2,414,771,000.

    [[Page 110 STAT. 205]]

        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 1996 for procurement for the Marine Corps in the amount
    of $458,947,000.
        (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 $430,053,000.

    SEC. 103. AIR FORCE.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for procurement for the Air Force as follows:
                (1) For aircraft, $7,349,783,000.
                (2) For missiles, $2,938,883,000.
                (3) For ammunition, $343,848,000.
                (4) For other procurement, $6,268,430,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for Defense-wide procurement in the amount of $2,124,379,000.

    SEC. 105. RESERVE COMPONENTS.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    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, $160,000,000.
                (2) For the Air National Guard, $255,000,000.
                (3) For the Army Reserve, $85,700,000.
                (4) For the Naval Reserve, $67,000,000.
                (5) For the Air Force Reserve, $135,600,000.
                (6) For the Marine Corps Reserve, $73,700,000.

    SEC. 106. DEFENSE INSPECTOR GENERAL.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for procurement for the Inspector General of the Department of Defense
    in the amount of $1,000,000.

    SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

        There is hereby authorized to be appropriated for fiscal year 1996
    the amount of $672,250,000 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 1996
    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 $288,033,000.

    [[Page 110 STAT. 206]]

                            Subtitle B--Army Programs

    SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR HELICOPTERS.

        The prohibition in section 133(a)(2) of the National Defense
    Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189;
    103 Stat. 1383) does not apply to the obligation of funds in amounts not
    to exceed $140,000,000 for the procurement of not more than 20 OH-58D
    Armed Kiowa Warrior aircraft from funds appropriated for fiscal year
    1996 pursuant to section 101.
    SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

        Subsection (j) of section 21 of the Arms Export Control Act (22
    U.S.C. 2761) is repealed.

    SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

        The Secretary of the Army may, in accordance with section 2306b of
    title 10, United States Code, enter into multiyear procurement contracts
    for procurement of the following:
                (1) AH-64D Longbow Apache attack helicopters.
                (2) UH-60 Black Hawk utility helicopters.

    SEC. 114. REPORT ON AH-64D ENGINE UPGRADES.

        No later than February 1, 1996, the Secretary of the Army shall
    submit to Congress a report on plans to procure T700-701C engine upgrade
    kits for Army AH-64D helicopters. The report shall include--
                (1) a plan to provide for the upgrade of all Army AH-64D
            helicopters with T700-701C engine kits commencing in fiscal year
            1996; and
                (2) a detailed timeline and statement of funding
            requirements for the engine upgrade program described in
            paragraph (1).

    SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED MULTIYEAR
                PROCUREMENT AUTHORITY FOR ARMY SMALL ARMS PROCUREMENT.

        (a) Requirement.--The Secretary of the Army (subject to the
    provision of authority in an appropriations Act) shall enter into a
    multiyear procurement contract during fiscal year 1997 in accordance
    with section 115(b)(2) of the National Defense Authorization for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2681).
        (b) Technical Amendment.--Section 115(b)(1) of the National Defense
    Authorization for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2681)
    is amended by striking out ``2306(h)'' and inserting in lieu thereof
    ``2306b''.

                            Subtitle C--Navy Programs

    SEC. 131. NUCLEAR ATTACK SUBMARINES.

        (a) Amounts Authorized.--(1) Of the amount authorized by section 102
    to be appropriated for Shipbuilding and Conversion, Navy, for fiscal
    year 1996--

    [[Page 110 STAT. 207]]

                (A) $700,000,000 is available for construction of the third
            vessel (designated SSN-23) in the Seawolf attack submarine
            class, which shall be the final vessel in that class; and
                (B) $804,498,000 is available for long-lead and advance
            construction and procurement of components for construction of
            the fiscal year 1998 and fiscal year 1999 submarines (previously
            designated by the Navy as the New Attack Submarine), of which--
                        (i) $704,498,000 shall be available for long-lead
                    and advance construction and procurement for the fiscal
                    year 1998 submarine, which shall be built by Electric
                    Boat Division; and
                        (ii) $100,000,000 shall be available for long-lead
                    and advance construction and procurement for the fiscal
                    year 1999 submarine, which shall be built by Newport
                    News Shipbuilding.

        (2) Of the amount authorized by section 201(2), $10,000,000 shall be
    available only for participation of Newport News Shipbuilding in the
    design of the submarine previously designated by the Navy as the New
    Attack Submarine.
        (b) Competition, Report, and Budget Revision Limitations.--(1) Of
    the amounts specified in subsection (a)(1), not more than $200,000,000
    may be obligated or expended 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
    procurement of nuclear attack submarines to be constructed beginning--
                (A) after fiscal year 1999, or
                (B) if four submarines are procured as provided for in the
            plan described in subsection (c), after fiscal year 2001,

    will be under one or more contracts that are entered into after
    competition between potential competitors (as defined in subsection (k))
    in which the Secretary solicits competitive proposals and awards the
    contract or contracts on the basis of price.
        (2) Of the amounts specified in subsection (a)(1), not more than
    $1,000,000,000 may be obligated or expended until the Secretary of
    Defense, not later than March 15, 1996, accomplishes each of the
    following:
                (A) Submits to the Committee on Armed Services of the Senate
            and the Committee on National Security of the House of
            Representatives in accordance with subsection (c) the plan
            required by that subsection for a program to produce a more
            capable, less expensive nuclear attack submarine than the
            submarine design previously designated by the Navy as the New
            Attack Submarine.
                (B) Notwithstanding any other provision of law, or the
            funding level in the President's budget for each year after
            fiscal year 1996, the Under Secretary of Defense (Comptroller)
            shall incorporate the costs of the plan required by subsection
            (c) in the Future Years Defense Program (FYDP) even if the total
            cost of that Program exceeds the President's budget.
                (C) Directs that the Under Secretary of Defense for
            Acquisition and Technology conduct oversight over the
            development and improvement of the nuclear attack submarine
            program of the Navy. Officials of the Department of the Navy
            exercising management oversight of the program shall report to
            the Under

    [[Page 110 STAT. 208]]

            Secretary of Defense for Acquisition and Technology with respect
            to that program.

        (c) Plan for Fiscal Year 1998, 1999, 2000, and 2001 Submarines.--(1)
    The Secretary of Defense shall, not later than March 15, 1996, develop
    (and submit to the committees specified in subsection (b)(2)(A)) a
    detailed plan for development of a program that will lead to production
    of a more capable, less expensive submarine than the submarine
    previously designated as the New Attack Submarine.
        (2) As part of such plan, the Secretary shall provide for a program
    for the design, development, and procurement of four nuclear attack
    submarines to be procured during fiscal years 1998 through 2001, the
    purpose of which shall be to develop and demonstrate new technologies
    that will result in each successive submarine of those four being a more
    capable and more affordable submarine than the submarine that preceded
    it. The program shall be structured so that--
                (A) one of the four submarines is to be constructed with
            funds appropriated for each fiscal year from fiscal year 1998
            through fiscal year 2001;
                (B) in order to ensure flexibility for innovation, the
            fiscal year 1998 and the fiscal year 2000 submarines are to be
            constructed by the Electric Boat Division and the fiscal year
            1999 and the fiscal year 2001 submarines are to be constructed
            by Newport News Shipbuilding;
                (C) the design designated by the Navy for the submarine
            previously designated as the New Attack Submarine will be used
            as the base design by both contractors;
                (D) each contractor shall be called upon to propose
            improvements, including design improvements, for each successive
            submarine as new and better technology is demonstrated and
            matures so that--
                        (i) each successive submarine is more capable and
                    more affordable; and
                        (ii) the design for a future class of nuclear attack
                    submarines will incorporate the latest, best, and most
                    affordable technology; and
                (E) the fifth and subsequent nuclear attack submarines to be
            built after the SSN-23 submarine shall be procured as required
            by subsection (b)(1).

        (3) The plan under paragraph (1) shall--
                (A) set forth a program to accomplish the design,
            development, and construction of the four submarines taking
            maximum advantage of a streamlined acquisition process, as
            provided under subsection (d);
                (B) culminate in selection of a design for a next submarine
            for serial production not earlier than fiscal year 2003, with
            such submarine to be procured as required by subsection (b)(1);
                (C) identify advanced technologies that are in various
            phases of research and development, as well as those that are
            commercially available off-the-shelf, that are candidates to be
            incorporated into the plan to design, develop, and procure the
            submarines;
                (D) designate the fifth submarine to be procured as the lead
            ship in the next generation submarine class, unless the
            Secretary of the Navy, in consultation with the special
            submarine review panel described in subsection (f), determines

    [[Page 110 STAT. 209]]

            that more submarines should be built before the design of the
            new class of submarines is fixed, in which case each such
            additional submarine shall be procured in the same manner as is
            required by subsection (b)(1); and
                (E) identify the impact of the submarine program described
            in paragraph (1) on the remainder of the appropriation account
            known as ``Shipbuilding and Conversion, Navy'', as such impact
            relates to--
                        (i) force structure levels required by the October
                    1993 Department of Defense report entitled ``Report on
                    the Bottom-Up Review'';
                        (ii) force structure levels required by the 1995
                    report on the Surface Ship Combatant Study that was
                    carried out for the Department of Defense; and
                        (iii) the funding requirements for submarine
                    construction, as a percentage of the total ship
                    construction account, for each fiscal year throughout
                    the FYDP.

        (4) As part of such plan, the Secretary shall provide--
                (A) cost estimates and schedules for developing new
            technologies that may be used to make submarines more capable
            and more affordable; and
                (B) an analysis of significant risks associated with
            fielding the new technologies on the schedule proposed by the
            Secretary and significant increased risks that are likely to be
            incurred by accelerating that schedule.

        (d) Streamlined Acquisition Process.--The Secretary of Defense shall
    prescribe and use streamlined acquisition policies and procedures to
    reduce the cost and increase the efficiency of the submarine program
    under this section.
        (e) Annual Revisions to Plan.--The Secretary shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives an annual update to the plan
    required to be submitted under subsection (b). Each such update shall be
    submitted concurrent with the President's budget submission to Congress
    for each of fiscal years 1998 through 2002.
        (f) Special Submarine Review Panel.--(1) The plan under subsection
    (c) and each annual update under subsection (e) shall be reviewed by a
    special bipartisan congressional panel working with the Navy. The panel
    shall consist of three members of the Committee on Armed Services of the
    Senate, who shall be designated by the chairman of that committee, and
    three members of the Committee on National Security of the House of
    Representatives, who shall be designated by the chairman of that
    committee. The members of the panel shall be briefed by the Secretary of
    the Navy on the status of the submarine modernization program and the
    status of submarine-related research and development under this section.
        (2) <<NOTE: Reports.>> Not later than May 1 of each year, the panel
    shall report to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives on the
    panel's findings and recommendations regarding the progress of the
    Secretary in procuring a more capable, less expensive submarine. The
    panel may recommend any funding adjustments it believes appropriate to
    achieve this objective.

        (g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds referred
    to in subsection (a)(1)(B) that are available for

    [[Page 110 STAT. 210]]

    the fiscal year 1998 and fiscal year 1999 submarines under this section
    may not be expended during fiscal year 1996 for the fiscal year 1998
    submarine (other than for design) unless funds are obligated or expended
    during such fiscal year for a contract in support of procurement of the
    fiscal year 1999 submarine.
        (h) Contracts Authorized.--The Secretary of the Navy is authorized,
    using funds available pursuant to paragraph (1)(B) of subsection (a), to
    enter into contracts with Electric Boat Division and Newport News
    Shipbuilding, and suppliers of components, during fiscal year 1996 for--
                (1) the procurement of long-lead components for the fiscal
            year 1998 submarine and the fiscal year 1999 submarine under
            this section; and
                (2) advance construction of such components and other
            components for such submarines.

        (i) Advanced Research Projects Agency Development of Advanced
    Technologies.--(1) Of the amount provided in section 201(4) for the
    Advanced Research Projects Agency, $100,000,000 is available only for
    development and demonstration of advanced technologies for incorporation
    into the submarines constructed as part of the plan developed under
    subsection (c). Such advanced technologies shall include the following:
                (A) Electric drive.
                (B) Hydrodynamic quieting.
                (C) Ship control automation.
                (D) Solid-state power electronics.
                (E) Wake reduction technologies.
                (F) Superconductor technologies.
                (G) Torpedo defense technologies.
                (H) Advanced control concept.
                (I) Fuel cell technologies.
                (J) Propulsors.

        (2) The Director of the Advanced Research Projects Agency shall
    implement a rapid prototype acquisition strategy for both land-based and
    at-sea subsystem and system demonstrations of advanced technologies
    under paragraph (1). Such acquisition strategy shall be developed and
    implemented in concert with Electric Boat Division and Newport News
    Shipbuilding and the Navy.
        (j) References to Contractors.--For purposes of this section--
                (1) the contractor referred to as ``Electric Boat Division''
            is the Electric Boat Division of the General Dynamics
            Corporation; and
                (2) the contractor referred to as ``Newport News
            Shipbuilding'' is the Newport News Shipbuilding and Drydock
            Company.

        (k) Potential Competitor Defined.--For purposes of this section, the
    term ``potential competitor'' means any source to which the Secretary of
    the Navy has awarded, within 10 years before the date of the enactment
    of this Act, a contract or contracts to construct one or more nuclear
    attack submarines.

    SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

        Of the amount appropriated for fiscal year 1996 for the National
    Defense Sealift Fund, $50,000,000 shall be available only for the
    Director of the Advanced Research Projects Agency for advanced submarine
    technology activities.

    [[Page 110 STAT. 211]]

    SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

        (a) Limitation of Costs.--Except as provided in subsection (b), the
    total amount obligated or expended for procurement of the SSN-21, SSN-
    22, and SSN-23 Seawolf class submarines may not exceed $7,223,659,000.
        (b) Automatic Increase of Limitation Amount.--The amount of the
    limitation set forth in subsection (a) is increased by the following
    amounts:
                (1) The amounts of outfitting costs and post-delivery costs
            incurred for the submarines referred to in such subsection.
                (2) The amounts of increases in costs attributable to
            economic inflation after September 30, 1995.
                (3) The amounts of increases in costs attributable to
            compliance with changes in Federal, State, or local laws enacted
            after September 30, 1995.

        (c) Repeal of Superseded Provision.--Section 122 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 2682) is repealed.
    SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT SUBMARINES.

        Section 124 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2683) is repealed.

    SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

        (a) Authorization for Procurement of Six Vessels.--The Secretary of
    the Navy is authorized to construct six Arleigh Burke class destroyers
    in accordance with this section. Within the amount authorized to be
    appropriated pursuant to section 102(a)(3), $2,169,257,000 is authorized
    to be appropriated for construction (including advance procurement) for
    the Arleigh Burke class destroyers.
        (b) Contracts.--(1) The Secretary is authorized to enter into
    contracts in fiscal year 1996 for the construction of three Arleigh
    Burke class destroyers.
        (2) The Secretary is authorized, in fiscal year 1997, to enter into
    contracts for the construction of the other three Arleigh Burke class
    destroyers covered by subsection (a), subject to the availability of
    appropriations for such destroyers.
        (3) In awarding contracts for the six vessels covered by subsection
    (a), the Secretary shall continue the contract award pattern and
    sequence used by the Secretary for the procurement of Arleigh Burke
    class destroyers during fiscal years 1994 and 1995.
        (4) A contract for construction of a vessel or vessels that is
    entered into in accordance with paragraph (1) shall include a clause
    that limits the liability of the Government to the contractor for any
    termination of the contract. The maximum liability of the Government
    under the clause shall be the amount appropriated for the vessel or
    vessels.
        (c) Use of Available Funds.--(1) Subject to paragraph (2), the
    Secretary may take appropriate actions to use for full funding of a
    contract entered into in accordance with subsection (b)--
                (A) any funds that, having been appropriated for
            shipbuilding and conversion programs of the Navy other than
            Arleigh Burke class destroyer programs pursuant to the
            authorization in section 102(a)(3), become excess to the needs
            of the Navy

    [[Page 110 STAT. 212]]

            for such programs by reason of cost savings achieved for such
            programs;
                (B) any unobligated funds that are available to the
            Secretary for shipbuilding and conversion for any fiscal year
            before fiscal year 1996; and
                (C) any funds that are appropriated after the date of the
            enactment of the Department of Defense Appropriations Act, 1996,
            to complete the full funding of the contract.

        (2) The Secretary may not, in the exercise of authority provided in
    subparagraph (A) or (B) of paragraph (1), obligate funds for a contract
    entered into in accordance with subsection (b) until 30 days after the
    date on which the Secretary submits to the congressional defense
    committees in writing a notification of the intent to obligate the
    funds. The notification shall set forth the source or sources of the
    funds and the amount of the funds from each such source that is to be so
    obligated.

    SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

        (a) Program Authorized.--The Secretary of the Navy shall establish a
    program to procure for, and install in, H-53E military transport
    helicopters commercially developed, energy absorbing, crash attenuating
    seats that the Secretary determines are consistent with military
    specifications for seats for such helicopters.
        (b) Funding.--To the extent provided in appropriations Acts, of the
    unobligated balance of amounts appropriated for the Legacy Resource
    Management Program pursuant to the authorization of appropriations in
    section 301(5) of the National Defense Authorization Act for Fiscal Year
    1995 (Public Law 103-337; 108 Stat. 2706), not more than $10,000,000
    shall be available to the Secretary of the Navy, by transfer to the
    appropriate accounts, for carrying out the program authorized in
    subsection (a).

    SEC. 137. T-39N TRAINER AIRCRAFT.

        (a) Limitation.--The Secretary of the Navy may not enter into a
    contract, using funds appropriated for fiscal year 1996 for procurement
    of aircraft for the Navy, for the acquisition of the aircraft described
    in subsection (b) until 60 days after the date on which the Under
    Secretary of Defense for Acquisition and Technology submits to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives--
                (1) an analysis of the proposed acquisition of such
            aircraft; and
                (2) a certification that the proposed acquisition during
            fiscal year 1996 (A) is in the best interest of the Government,
            and (B) is the most cost effective means of meeting the
            requirements of the Navy for aircraft for use in the training of
            naval flight officers.

        (b) Covered Aircraft.--Subsection (a) applies to certain T-39
    trainer aircraft that as of November 1, 1995 (1) are used by the Navy
    under a lease arrangement for the training of naval flight officers, and
    (2) are offered for sale to the Government.

    SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

        Not more than one-sixth of the amount appropriated pursuant to this
    Act for the activities and operations of the Unmanned Aerial Vehicle
    Joint Program Office (UAV-JPO), and none of the unobligated balances of
    funds appropriated for fiscal years before

    [[Page 110 STAT. 213]]

    fiscal year 1996 for the activities and operations of such office, may
    be obligated until the Secretary of the Navy certifies to the Committee
    on Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives that funds have been obligated to equip nine Pioneer
    Unmanned Aerial Vehicle systems with the Common Automatic Landing and
    Recovery System (CARS).

                         Subtitle D--Air Force Programs

    SEC. 141. B-2 AIRCRAFT PROGRAM.

        (a) Repeal of Limitations.--The following provisions of law are
    repealed:
                (1) Section 151(c) of the National Defense Authorization Act
            for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2339).
                (2) Sections 131(c) and 131(d) of the National Defense
            Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107
            Stat. 1569).
                (3) Section 133(e) of the National Defense Authorization Act
            for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2688).

        (b) Conversion of Limitation to Annual Report Requirement.--Section
    112 of the National Defense Authorization Act for Fiscal Years 1990 and
    1991 (Public Law 101-189; 103 Stat. 1373) is amended--
                (1) by striking out subsection (a);
                (2) by striking out the matter in subsection (b) preceding
            paragraph (1) and inserting in lieu thereof the following:

        ``(a) Annual Reporting Requirement.--Not later than March 1 of each
    year, the Secretary of Defense shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives a report that sets forth the finding of the
    Secretary (as of January 1 of such year) on each of the following
    matters:'';
                (3) by striking out ``That'' in paragraphs (1), (2), (3),
            (4), and (5) and inserting in lieu thereof ``Whether'';
                (4) in paragraph (1), by striking out ``latest'' and all
            that follows through ``100-180'' and inserting in lieu thereof
            ``Requirements Correlation Matrix found in the user-defined
            Operational Requirements Document (as contained in Attachment B
            to a letter from the Secretary of Defense to Congress dated
            October 14, 1993)'';
                (5) in paragraph (3), by striking out ``congressional
            defense'';
                (6) in paragraph (4), by striking out ``such certification
            to be submitted'';
                (7) by adding at the end the following:

        ``(b) First Report.--The Secretary shall submit the first annual
    report under subsection (a) not later than March 1, 1996.''; and
                (8) by amending the section heading to read as follows:

    ``SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.''.

        (c) Repeal of Condition on Obligation of Funds in Enhanced Bomber
    Capability Fund.--Section 133(d)(3) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2688) is amended by striking out ``If,'' and all that follows through
    ``bombers, the Secretary'' and inserting in lieu thereof ``The
    Secretary''.

    [[Page 110 STAT. 214]]

    SEC. 142. PROCUREMENT OF B-2 BOMBERS.

        Of the amount authorized to be appropriated by section 103 for the
    B-2 bomber procurement program, not more than $279,921,000 may be
    obligated or expended before March 31, 1996.

    SEC. 143. MC-130H AIRCRAFT PROGRAM.

        The limitation on the obligation of funds for payment of an award
    fee and the procurement of contractor-furnished equipment for the MC-
    130H Combat Talon aircraft set forth in section 161(a) of the National
    Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law
    101-189; 103 Stat. 1388) shall cease to apply upon determination by the
    Director of Operational Test and Evaluation (and submission of a
    certification of that determination to the congressional defense
    committees) that, based on the operational test and evaluation and the
    analysis conducted on that aircraft to the date of that determination,
    such aircraft is operationally effective and meets the needs of its
    intended users.

                  Subtitle E--Chemical Demilitarization Program

    SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH
                            DEVELOPMENT OF CHEMICAL DEMILITARIZATION
                            CRYOFRACTURE FACILITY AT TOOELE ARMY
                            DEPOT, UTAH.

        Subsection (a) of section 173 of the National Defense Authorization
    Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1393)
    is repealed.
    SEC. 152. <<NOTE: 50 USC 1521 note.>>  DESTRUCTION OF EXISTING
                            STOCKPILE OF LETHAL CHEMICAL AGENTS AND
                            MUNITIONS.

        (a) In General.--The Secretary of Defense shall proceed with the
    program for destruction of the chemical munitions stockpile of the
    Department of Defense while maintaining the maximum protection of the
    environment, the general public, and the personnel involved in the
    actual destruction of the munitions. In carrying out such program, the
    Secretary shall use technologies and procedures that will minimize the
    risk to the public at each site.
        (b) Initiation of Demilitarization Operations.--The Secretary of
    Defense may not initiate destruction of the chemical munitions stockpile
    stored at a site until the following support measures are in place:
                (1) Support measures that are required by Department of
            Defense and Army chemical surety and security program
            regulations.
                (2) Support measures that are required by the general and
            site chemical munitions demilitarization plans specific to that
            installation.
                (3) Support measures that are required by the permits
            required by the Solid Waste Disposal Act (42 U.S.C. 6901 et
            seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for
            chemical munitions demilitarization operations at that
    installation, as approved by the appropriate State regulatory agencies.

        (c) Assessment of Alternatives.--(1) The Secretary of Defense shall
    conduct an assessment of the current chemical demilitarization program
    and of measures that could be taken to reduce

    [[Page 110 STAT. 215]]

    significantly the total cost of the program, while ensuring maximum
    protection of the general public, the personnel involved in the
    demilitarization program, and the environment. The measures considered
    shall be limited to those that would minimize the risk to the public.
    The assessment shall be conducted without regard to any limitation that
    would otherwise apply to the conduct of such an assessment under any
    provision of law.
        (2) The assessment shall be conducted in coordination with the
    National Research Council.
        (3) Based on the results of the assessment, the Secretary shall
    develop appropriate recommendations for revision of the chemical
    demilitarization program.
        (4) <<NOTE: Reports.>> Not later than March 1, 1996, the Secretary
    of Defense shall submit to the congressional defense committees an
    interim report assessing the current status of the chemical stockpile
    demilitarization program, including the results of the Army's analysis
    of the physical and chemical integrity of the stockpile and implications
    for the chemical demilitarization program, and providing recommendations
    for revisions to that program that have been included in the budget
    request of the Department of Defense for fiscal year 1997. The Secretary
    shall submit to the congressional defense committees with the submission
    of the budget request of the Department of Defense for fiscal year 1998
    a final report on the assessment conducted in accordance with paragraph
    (1) and recommendations for revision to the program, including an
    assessment of alternative demilitarization technologies and processes to
    the baseline incineration process and potential reconfiguration of the
    stockpile that should be incorporated in the program.

        (d) Assistance for Chemical Weapons Stockpile Communities Affected
    by Base Closure.--(1) The Secretary of Defense shall review and evaluate
    issues associated with closure and reutilization of Department of
    Defense facilities co-located with continuing chemical stockpile and
    chemical demilitarization operations.
        (2) The review shall include the following:
                (A) An analysis of the economic impacts on these communities
            and the unique reuse problems facing local communities
            associated with ongoing chemical weapons programs.
                (B) Recommendations of the Secretary on methods for
            expeditious and cost-effective transfer or lease of these
            facilities to local communities for reuse by those communities.

        (3) <<NOTE: Reports.>> The Secretary shall submit to the
    congressional defense committees a report on the review and evaluation
    under this subsection. The report shall be submitted not later than 90
    days after the date of the enactment of this Act.
    SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

        (a) Travel Funding for Members of Chemical Demilitarization
    Citizens' Advisory Commissions.--Section 172(g) of Public Law 102-484
    (50 U.S.C. 1521 note) is amended to read as follows:
        ``(g) Pay and Expenses.--Members of each commission shall receive no
    pay for their involvement in the activities of their commissions. Funds
    appropriated for the Chemical Stockpile Demilitarization Program may be
    used for travel and associated travel costs for Citizens' Advisory
    Commissioners, when such travel

    [[Page 110 STAT. 216]]

    is conducted at the invitation of the Assistant Secretary of the Army
    (Research, Development, and Acquisition).''.
        (b) Quarterly Report Concerning Travel Funding for Citizens'
    Advisory Commissioners.--Section 1412(g) of the Department of Defense
    Authorization Act, 1986 (50 U.S.C. 1521(g)), is amended--
                (1) by striking out ``(g) Annual Report.--'' and inserting
            in lieu thereof ``(g) Periodic Reports.--'';
                (2) in paragraph (2)--
                        (A) by striking out ``Each such report shall con-
                    tain--'' and inserting in lieu thereof ``Each annual
                    report shall contain--''
                        (B) in subparagraph (B)--
                              (i) by striking out ``and'' at the end of
                          clause (iv);
                              (ii) by striking out the period at the end of
                          clause (v) and inserting in lieu thereof ``;
                          and''; and
                              (iii) by adding at the end the following:
                        ``(vi) travel and associated travel costs for
                    Citizens' Advisory Commissioners under section 172(g) of
                    Public Law 102-484 (50 U.S.C. 1521 note).'';
                (3) by redesignating paragraph (3) as paragraph (4);
                (4) by inserting after paragraph (2) the following new
            paragraph (3):

        ``(3) The Secretary shall transmit 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 quarterly report containing an accounting
    of all funds expended (during the quarter covered by the report) for
    travel and associated travel costs for Citizens' Advisory Commissioners
    under section 172(g) of Public Law 102-484 (50 U.S.C. 1521 note). The
    quarterly report for the final quarter of the period covered by a report
    under paragraph (1) may be included in that report.''; and
                (5) in paragraph (4), as redesignated by paragraph (3)--
                        (A) by striking out ``this subsection'' and
                    inserting in lieu thereof ``paragraph (1)''; and
                        (B) by adding at the end the following: ``No
                    quarterly report is required under paragraph (3) after
                    the transmittal of the final report under paragraph
                    (1).''.

        (c) Director of Program.--Section 1412(e)(3) of the Department of
    Defense Authorization Act, 1986 (50 U.S.C. 1521(e)(3)), is amended by
    inserting ``or civilian equivalent'' after ``general officer''.

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

                   Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $4,737,581,000.

    [[Page 110 STAT. 217]]

                (2) For the Navy, $8,474,783,000.
                (3) For the Air Force, $12,914,868,000.
                (4) For Defense-wide activities, $9,693,180,000, of which--
                        (A) $251,082,000 is authorized for the activities of
                    the Director, Test and Evaluation; and
                        (B) $22,587,000 is authorized for the Director of
                    Operational Test and Evaluation.
    SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY DEVELOPMENT.

        (a) Fiscal Year 1996.--Of the amounts authorized to be appropriated
    by section 201, $4,088,879,000 shall be available for basic research and
    exploratory development projects.
        (b) Basic Research and Exploratory Development Defined.--For
    purposes of this section, the term ``basic research and exploratory
    development'' means work funded in program elements for defense research
    and development under Department of Defense category 6.1 or 6.2.
    SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH AND
                            DEVELOPMENT PROGRAM.

        (a) Council Membership.--Section 2902(b) of title 10, United States
    Code, is amended--
                (1) by striking out ``thirteen'' and inserting in lieu
            thereof ``12'';
                (2) by striking out paragraph (3);
                (3) by redesignating paragraphs (4), (5), (6), (7), (8),
            (9), and (10) as paragraphs (3), (4), (5), (6), (7), (8), and
            (9), respectively; and
                (4) in paragraph (8), as redesignated, by striking out ``,
            who shall be nonvoting members''.

        (b) Annual Report.--(1) Section 2902 of such title is amended in
    subsection (d)--
                (A) by striking out paragraph (3) and inserting in lieu
            thereof the following:
                ``(3) To prepare an annual report that contains the
            following:
                        ``(A) A description of activities of the strategic
                    environmental research and development program carried
                    out during the fiscal year before the fiscal year in
                    which the report is prepared.
                        ``(B) A general outline of the activities planned
                    for the program during the fiscal year in which the
                    report is prepared.
                        ``(C) A summary of projects continued from the
                    fiscal year before the fiscal year in which the report
                    is prepared and projects expected to be started during
                    the fiscal year in which the report is prepared and
                    during the following fiscal year.''; and
                (B) in paragraph (4), by striking out ``Federal Coordinating
            Council on Science, Engineering, and Technology'' and inserting
            in lieu thereof ``National Science and Technology Council''.

        (2) Section 2902 of such title is further amended--
                (A) by striking out subsections (f) and (h);
                (B) by redesignating subsection (g) as subsection (f); and
                (C) by adding at the end the following new subsection:

    [[Page 110 STAT. 218]]

        ``(g)(1) Not later than February 1 of each year, the Council shall
    submit to the Secretary of Defense the annual report prepared pursuant
    to subsection (d)(3).
        ``(2) Not later than March 15 of each year, the Secretary of Defense
    shall submit such annual report to Congress, along with such comments as
    the Secretary considers appropriate.''.
        (3) <<NOTE: 10 USC 2902 note.>> The amendments made by this
    subsection shall apply with respect to the annual report prepared during
    fiscal year 1997 and each fiscal year thereafter.

        (c) Policies and Procedures.--Section 2902(e) of such title is
    amended in paragraph (3) by striking out ``programs, particularly'' and
    all that follows through the end of the paragraph and inserting in lieu
    thereof ``programs;''.
        (d) Competitive Procedures.--Section 2903(c) of such title is
    amended--
                (1) by striking out ``or'' after ``contracts'' and inserting
            in lieu thereof ``using competitive procedures. The Executive
            Director may enter into''; and
                (2) by striking out ``law, except that'' and inserting in
            lieu thereof ``law. In either case,''.

        (e) Continuation of Expiring Authority.--(1) Section 2903(d) of such
    title is amended in paragraph (2) by striking out the last sentence.
        (2) <<NOTE: Effective date. 10 USC 2903 note.>> The amendment made
    by paragraph (1) shall take effect as of September 29, 1995.

    SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

        (a) Fiscal Year 1996 Amount.--Of the amount authorized to be
    appropriated in section 201(4), $195,000,000 shall be available for the
    defense dual use technology initiative conducted under chapter 148 of
    title 10, United States Code.
        (b) Availability of Funds for Existing Technology Reinvestment
    Projects.--The Secretary of Defense shall use amounts made available for
    the defense dual use technology initiative under subsection (a) only for
    the purpose of continuing or completing technology reinvestment projects
    that were initiated before October 1, 1995.
        (c) Notice Concerning Projects To Be Carried Out.--Of the amounts
    made available for the defense dual use technology initiative under
    subsection (a)--
                (1) $145,000,000 shall be available for obligation only
            after the date on which the Secretary of Defense notifies the
            congressional defense committees regarding the defense
            reinvestment projects to be funded using such funds; and
                (2) the remaining $50,000,000 shall be available for
            obligation only after the date on which the Secretary of Defense
            certifies to the congressional defense committees that the
            defense reinvestment projects to be funded using such funds have
            been determined by the Joint Requirements Oversight Council to
            be of significant military priority.

    [[Page 110 STAT. 219]]

         Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. SPACE LAUNCH MODERNIZATION.

        (a) Allocation of Funds.--Of the amount authorized to be
    appropriated pursuant to the authorization in section 201(3),
    $50,000,000 shall be available for a competitive reusable rocket
    technology program.
        (b) Limitation.--Funds made available pursuant to subsection (a)(1)
    may be obligated only to the extent that the fiscal year 1996 current
    operating plan of the National Aeronautics and Space Administration
    allocates at least an equal amount for its Reusable Space Launch
    program.

    SEC. 212. TACTICAL MANNED RECONNAISSANCE.

        (a) Limitation.--None of the amounts appropriated or otherwise made
    available pursuant to an authorization in this Act may be used by the
    Secretary of the Air Force to conduct research, development, test, or
    evaluation for a replacement aircraft, pod, or sensor payload for the
    tactical manned reconnaissance mission until the report required by
    subsection (b) is submitted to the congressional defense committees.
        (b) Report.--The Secretary of the Air Force shall submit to the
    congressional defense committees a report setting forth in detail
    information about the manner in which the funds authorized by section
    201 of this Act and section 201 of the National Defense Authorization
    Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2690) are
    planned to be used during fiscal year 1996 for research, development,
    test, and evaluation for the Air Force tactical manned reconnaissance
    mission. At a minimum, the report shall include the sources, by program
    element, of the funds and the purposes for which the funds are planned
    to be used.

    SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

        (a) Allocation of Funds.--Of the amounts authorized to be
    appropriated pursuant to the authorizations in section 201, $200,156,000
    shall be available for the Joint Advanced Strike Technology (JAST)
    program. Of that amount--
                (1) $83,795,000 shall be available for program element
            63800N in the budget of the Department of Defense for fiscal
            year 1996;
                (2) $85,686,000 shall be available for program element
            63800F in such budget; and
                (3) $30,675,000 shall be available for program element
            63800E in such budget.

        (b) Additional Allocation.--Of the amounts made available under
    paragraphs (1), (2), and (3) of subsection (a)--
                (1) $25,000,000 shall be available from the amount
            authorized to be appropriated pursuant to the authorization in
            section 201(2) for the conduct, during fiscal year 1996, of a 6-
            month program definition phase for the A/F117X, an F-117 fighter
            aircraft modified for use by the Navy as a long-range, medium
            attack aircraft; and
                (2) $7,000,000 shall be available to provide for competitive
            engine concepts.

    [[Page 110 STAT. 220]]

        (c) Limitation.--Not more than 75 percent of the amount appropriated
    for the Joint Advanced Strike Technology program pursuant to the
    authorizations in section 201 may be obligated until a period of 30 days
    has expired after the report required by subsection (d) is submitted to
    the congressional defense committees.
        (d) Report.--The Secretary of Defense shall submit to the
    congressional defense committees a report, in unclassified and
    classified forms, not later than March 1, 1996, that sets forth in
    detail the following information for the period 1997 through 2005:
                (1) The total joint requirement, assuming the capability to
            successfully conduct two nearly simultaneous major regional
            contingencies, for the following:
                        (A) Numbers of bombers, tactical combat aircraft,
                    and attack helicopters and the characteristics required
                    of those aircraft in terms of capabilities, range, and
                    low-observability.
                        (B) Surface- and air-launched standoff precision
                    guided munitions.
                        (C) Cruise missiles.
                        (D) Ground-based systems, such as the Extended
                    Range-Multiple Launch Rocket System and the Army
                    Tactical Missile System (ATACMS), for joint warfighting
                    capability.
                (2) The warning time assumptions for two nearly simultaneous
            major regional contingencies, and the effects on future tactical
            attack/fighter aircraft requirements using other warning time
            assumptions.
                (3) The requirements that exist for the Joint Advanced
            Strike Technology program that cannot be met by existing
            aircraft or by those in development.

    SEC. 214. DEVELOPMENT OF LASER PROGRAM.

        Of the amount authorized to be appropriated by section 201(2),
    $9,000,000 shall be used for the development by the Naval High Energy
    Laser Office of a continuous wave, superconducting radio frequency free
    electron laser program.

    SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

        Section 216(a) of the National Defense Authorization Act for Fiscal
    Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317) is amended--
                (1) by striking out ``Director, Defense Research and
            Engineering'' and inserting in lieu thereof ``Under Secretary of
            Defense for Acquisition and Technology''; and
                (2) by striking out ``fiscal years 1995 through 1999'' and
            inserting in lieu thereof ``fiscal years 1996 through 1999''.

    SEC. 216. SPACE-BASED INFRARED SYSTEM.

        (a) Program Baseline.--The Secretary of Defense shall establish a
    program baseline for the Space-Based Infrared System. Such baseline
    shall--
                (1) include--
                        (A) program cost and an estimate of the funds
                    required for development and acquisition activities for
                    each fiscal year in which such activities are planned to
                    be carried out;

    [[Page 110 STAT. 221]]

                        (B) a comprehensive schedule with program milestones
                    and exit criteria; and
                        (C) optimized performance parameters for each
                    segment of an integrated space-based infrared system;
                (2) be structured to achieve initial operational capability
            of the low earth orbit space segment (the Space and Missile
            Tracking System) in fiscal year 2003, with a first launch of
            Block I satellites in fiscal year 2002;
                (3) ensure integration of the Space and Missile Tracking
            System into the architecture of the Space-Based Infrared System;
            and
                (4) ensure that the performance parameters of all space
            segment components are selected so as to optimize the
            performance of the Space-Based Infrared System while minimizing
            unnecessary redundancy and cost.

        (b) Report on Program Baseline.--Not later than 60 days after the
    date of the enactment of this Act, the Secretary of Defense shall submit
    to the congressional defense committees a report, in classified and
    unclassified forms as necessary, on the program baseline established
    under subsection (a).
        (c) Establishment of Program Elements.--In the budget justification
    materials submitted to Congress in support of the Department of Defense
    budget for any fiscal year after fiscal year 1996 (as submitted in the
    budget of the President under section 1105(a) of title 31, United States
    Code), the amount requested for the Space-Based Infrared System shall be
    set forth in accordance with the following program elements:
                (1) Space Segment High.
                (2) Space Segment Low (Space and Missile Tracking System).
                (3) Ground Segment.

        (d) Funding for Fiscal Year 1996.--Of the amounts authorized to be
    appropriated pursuant to section 201(3) for fiscal year 1996, or
    otherwise made available to the Department of Defense for fiscal year
    1996, the following amounts shall be available for the Space-Based
    Infrared System:
                (1) $265,744,000 for demonstration and validation, of which
            $249,824,000 shall be available for the Space and Missile
            Tracking System.
                (2) $162,219,000 for engineering and manufacturing
            development, of which $9,400,000 shall be available for the
            Miniature Sensor Technology Integration program.

    SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

        (a) Agency Funding.--Of the amounts authorized to be appropriated to
    the Department of Defense in section 201, $241,703,000 shall be
    available for the Defense Nuclear Agency.
        (b) Tunnel Characterization and Neutralization Program.--Of the
    amount made available under subsection (a), $3,000,000 shall be
    available for a tunnel characterization and neutralization program to be
    managed by the Defense Nuclear Agency as part of the
    counterproliferation activities of the Department of Defense.
        (c) Long-Term Radiation Tolerant Microelectronics Program.--(1) Of
    the amount made available under subsection (a), $6,000,000 shall be
    available for the establishment of a long-term

    [[Page 110 STAT. 222]]

    radiation tolerant microelectronics program to be managed by the Defense
    Nuclear Agency for the purposes of--
                (A) providing for the development of affordable and
            effective hardening technologies and for incorporation of such
            technologies into systems;
                (B) sustaining the supporting industrial base; and
                (C) ensuring that a use of a nuclear weapon in regional
            threat scenarios does not interrupt or defeat the continued
            operability of systems of the Armed Forces exposed to the
            combined effects of radiation emitted by the weapon.

        (2) <<NOTE: Reports.>> 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 how the long-term radiation tolerant microelectronics
    program is to be conducted and funded in the fiscal years after fiscal
    year 1996 that are covered by the future-years defense program submitted
    to Congress in 1995.

        (d) Thermionics Program.--Of the amount made available under
    subsection (a), $10,000,000 shall be available for the thermionics
    program, to be managed by the Defense Nuclear Agency.
        (e) Electrothermal Gun Technology Program.--Of the amount made
    available under subsection (a), $4,000,000 shall be available for the
    electrothermal gun technology program of the Defense Nuclear Agency.
        (f) Counterterror Explosives Research Program.--Of the amount made
    available under subsection (a), $4,000,000 shall be available for the
    counterterror explosives research program of the Defense Nuclear Agency.
        (g) Transfer of Unobligated Balance.--The Secretary of Defense shall
    transfer to the Defense Nuclear Agency, to be available for the
    thermionics program, an amount not to exceed $12,000,000 from the
    unobligated balance of funds authorized and appropriated for research,
    development, test, and evaluation for fiscal year 1995 for the Air Force
    for the Advanced Weapons Program.

    SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

        (a) Funding.--Of the funds authorized to be appropriated to the
    Department of Defense under section 201(4), $138,237,000 shall be
    available for the Counterproliferation Support Program, of which
    $30,000,000 shall be available for a tactical antisatellite technologies
    program.
        (b) Additional Authority To Transfer Authorizations.--(1) In
    addition to the transfer authority provided in section 1001, upon
    determination by the Secretary of Defense that such action is necessary
    in the national interest, the Secretary may transfer amounts of
    authorizations made available to the Department of Defense in this
    division for fiscal year 1996 to counterproliferation programs,
    projects, and activities identified as areas for progress by the
    Counterproliferation Program Review Committee established by section
    1605 of the National Defense Authorization Act for Fiscal Year 1994
    (Public Law 103-160; 107 Stat. 1845). Amounts of authorizations so
    transferred shall be merged with and be available for the same purposes
    as the authorization to which transferred.
        (2) The total amount of authorizations transferred under the
    authority of this subsection may not exceed $50,000,000.

    [[Page 110 STAT. 223]]

        (3) The authority provided by this subsection to transfer
    authorizations--
                (A) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred; and
                (B) may not be used to provide authority for an item that
            has been denied authorization by Congress.

        (4) A transfer made from one account to another under the authority
    of this subsection shall be deemed to increase the amount authorized for
    the account to which the amount is transferred by an amount equal to the
    amount transferred.
        (5) <<NOTE: Notification.>> The Secretary of Defense shall promptly
    notify Congress of transfers made under the authority of this
    subsection.

    SEC. 219. NONLETHAL WEAPONS STUDY.

        (a) Findings.--Congress finds the following:
                (1) The role of the United States military in operations
            other than war has increased.
                (2) Weapons and instruments that are nonlethal in
            application yet immobilizing could have widespread operational
            utility and application.
                (3) The use of nonlethal weapons in operations other than
            war poses a number of important doctrine, legal, policy, and
            operations questions which should be addressed in a
            comprehensive and coordinated manner.
                (4) The development of nonlethal technologies continues to
            spread across military and agency budgets.
                (5) The Department of Defense should provide improved
            budgetary focus and management direction to the nonlethal
            weapons program.

        (b) Responsibility for Development of Nonlethal Weapons
    Technology.--Not later than February 15, 1996, the Secretary of Defense
    shall assign centralized responsibility for development (and any other
    functional responsibility the Secretary considers appropriate) of
    nonlethal weapons technology to an existing office within the Office of
    the Secretary of Defense or to a military service as the executive
    agent.

        (c) Report.--Not later than February 15, 1996, the Secretary of
    Defense shall submit to Congress a report setting forth the following:
                (1) The name of the office or military service assigned
            responsibility for the nonlethal weapons program by the
            Secretary of Defense pursuant to subsection (b) and a discussion
            of the rationale for such assignment.
                (2) The degree to which nonlethal weapons are required by
            more than one of the armed forces.
                (3) The time frame for the development and deployment of
            such weapons.
                (4) The appropriate role of the military departments and
            defense agencies in the development of such weapons.
                (5) The military doctrine, legal, policy, and operational
            issues that must be addressed by the Department of Defense
            before such weapons achieve operational capability.

        (d) Authorization.--Of the amount authorized to be appropriated
    under section 201(4), $37,200,000 shall be available for nonlethal
    weapons programs and nonlethal technologies programs.

    [[Page 110 STAT. 224]]

        (e) Definition.--For purposes of this section, the term ``nonlethal
    weapon'' means a weapon or instrument the effect of which on human
    targets is less than fatal.
    SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS AND
                            UNIVERSITY-AFFILIATED RESEARCH CENTERS.

        (a) Centers Covered.--Funds appropriated or otherwise made available
    for the Department of Defense for fiscal year 1996 pursuant to an
    authorization of appropriations in section 201 may be obligated to
    procure work from a federally funded research and development center (in
    this section referred to as an ``FFRDC'') or a university-affiliated
    research center (in this section referred to as a ``UARC'') only in the
    case of a center named in the report required by subsection (b) and, in
    the case of such a center, only in an amount not in excess of the amount
    of the proposed funding level set forth for that center in such report.
        (b) Report on Allocations for Centers.--(1) Not later than 30 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    containing--
                (A) the name of each FFRDC and UARC from which work is
            proposed to be procured for the Department of Defense for fiscal
            year 1996; and
                (B) for each such center, the proposed funding level and the
            estimated personnel level for fiscal year 1996.

        (2) The total of the proposed funding levels set forth in the report
    for all FFRDCs and UARCs may not exceed the amount set forth in
    subsection (d).
        (c) Limitation Pending Submission of Report.--Not more than 15
    percent of the funds appropriated or otherwise made available for the
    Department of Defense for fiscal year 1996 pursuant to an authorization
    of appropriations in section 201 for FFRDCs and UARCs may be obligated
    to procure work from an FFRDC or UARC until the Secretary of Defense
    submits the report required by subsection (b).
        (d) Funding.--Of the amounts authorized to be appropriated by
    section 201, not more than a total of $1,668,850,000 may be obligated to
    procure services from the FFRDCs and UARCs named in the report required
    by subsection (b).
        (e) Authority To Waive Funding Limitation.--The Secretary of Defense
    may waive the limitation regarding the maximum funding amount that
    applies under subsection (a) to an FFRDC or
    UARC. <<NOTE: Notice.>> Whenever the Secretary proposes to make such a
    waiver, the Secretary shall submit to the Committee on Armed Services of
    the Senate and the Committee on National Security of the House of
    Representatives notice of the proposed waiver and the reasons for the
    waiver. The waiver may then be made only after the end of the 60-day
    period that begins on the date on which the notice is submitted to those
    committees, unless the Secretary determines that it is essential to the
    national security that funds be obligated for work at that center in
    excess of that limitation before the end of such period and notifies
    those committees of that determination and the reasons for the
    determination.

        (f) Five-Year Plan.--(1) The Secretary of Defense, in consultation
    with the Secretaries of the military departments, shall develop a five-
    year plan to reduce and consolidate the activities performed

    [[Page 110 STAT. 225]]

    by FFRDCs and UARCs and establish a framework for the future workload of
    such centers.
        (2) The plan shall--
                (A) set forth the manner in which the Secretary of Defense
            could achieve by October 1, 2000, implementation by FFRDCs and
            UARCs of only those core activities, as defined by the
            Secretary, that require the unique capabilities and arrangements
            afforded by such centers; and
                (B) include an assessment of the number of personnel needed
            in each FFRDC and UARC during each year over the five years
            covered by the plan.

        (3) <<NOTE: Reports.>> Not later than February 1, 1996, the
    Secretary of Defense shall submit to the congressional defense
    committees a report on the plan required by this subsection.

    SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

        Of the amount authorized to be appropriated under section 201(3),
    $9,500,000 shall be available for fiscal year 1996 (in program element
    61101F in the budget of the Department of Defense for fiscal year 1996)
    for continuation of the Joint Seismic Program and Global Seismic
    Network.

    SEC. 222. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

        (a) Funding Authorization.--Of the amount authorized to be
    appropriated under section 201(1) for Other Missile Product Improvement
    Programs, $10,000,000 is authorized to be appropriated for a Hydra-70
    rocket product improvement program and to be made available under such
    program for full qualification and operational platform certification of
    a Hydra-70 rocket described in subsection (b) for use on the Apache
    attack helicopter.
        (b) Hydra-70 Rocket Covered.--The Hydra-70 rocket referred to in
    subsection (a) is any Hydra-70 rocket that has as its propulsion
    component a 2.75-inch rocket motor that is a nondevelopmental item and
    uses a composite propellant.
        (c) Competition Required.--The Secretary of the Army shall conduct
    the product improvement program referred to in subsection (a) with full
    and open competition.
        (d) Submission of Technical Data Package Required.--Upon the full
    qualification and operational platform certification of a Hydra-70
    rocket as described in subsection (a), the contractor providing the
    rocket so qualified and certified shall submit the technical data
    package for the rocket to the Secretary of the Army. The Secretary shall
    use the technical data package in competitions for contracts for the
    procurement of Hydra-70 rockets described in subsection (b) for the
    Army.
        (e) Definitions.--For purposes of this section, the terms ``full and
    open competition'' and ``nondevelopmental item'' have the meanings given
    such terms in section 4 of the Office of Federal Procurement Policy Act
    (41 U.S.C. 403).
    SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF
                            ELECTRONIC COMBAT CONSOLIDATION MASTER
                            PLAN.

        (a) Limitation.--Not more than 75 percent of the amounts
    appropriated or otherwise made available pursuant to the authorization
    of appropriations in section 201 for test and evaluation program
    elements 65896A, 65864N, 65807F, and 65804D in the budget of the
    Department of Defense for fiscal year 1996 may

    [[Page 110 STAT. 226]]

    be obligated until 14 days after the date on which the congressional
    defense committees receive the plan specified in subsection (b).
        (b) Plan.--The plan referred to in subsection (a) is the master plan
    for electronic combat consolidation described under Defense-Wide
    Programs under Research, Development, Test, and Evaluation in the Report
    of the Committee on Armed Services of the House of Representatives on
    H.R. 4301 (House Report 103-499), dated May 10, 1994.
    SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT, TEST, AND
                            EVALUATION.

        (a) Report Requirement.--Not later than March 15, 1996, the Under
    Secretary of Defense (Comptroller) shall submit to the congressional
    defense committees a report that sets forth in detail the allocation of
    reductions for research, development, test, and evaluation described in
    subsection (b).
        (b) Description of Reductions.--The reductions for research,
    development, test, and evaluation covered by subsection (a) are the
    following Army, Navy, Air Force, and Defense-wide reductions, as
    required by the Department of Defense Appropriations Act, 1996:
                (1) General reductions.
                (2) Reductions to reflect savings from revised economic
            assumptions.
                (3) Reductions to reflect the funding ceiling for defense
            federally funded research and development centers.
                (4) Reductions for savings through improved management of
            contractor automatic data processing costs charged through
            indirect rates on Department of Defense acquisition contracts.

    SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

        (a) Authority To Use Funds for Alternative Propellant
    Technologies.--During fiscal year 1996, the Secretary of the Army may
    use funds appropriated for the liquid propellant portion of the Advanced
    Field Artillery System (Crusader) program for fiscal year 1996 for
    alternative propellant technologies and integration of those
    technologies into the design of the Crusader if--
                (1) the Secretary determines that the technical risk
            associated with liquid propellant will increase costs and delay
            the initial operational capability of the Crusader; and
                (2) <<NOTE: Notification.>> the Secretary notifies the
            congressional defense committees of the proposed use of the
            funds and the reasons for the proposed use of the funds.

        (b) Limitation.--The Secretary of the Army may not spend funds for
    the liquid propellant portion of the Crusader program after August 15,
    1996, unless--
                (1) the report required by subsection (c) has been submitted
            by that date; and
                (2) such report includes documentation of significant
            progress, as determined by the Secretary, toward meeting the
            objectives for the liquid propellant portion of the program, as
            set forth in the baseline description for the Crusader program
            and approved by the Office of the Secretary of Defense on
            January 4, 1995.

        (c) Report Required.--Not later than August 1, 1996, the Secretary
    of the Army shall submit to the congressional defense committees a
    report containing documentation of the progress being made in meeting
    the objectives set forth in the baseline description for the Crusader
    program and approved by the Office of the Sec

    [[Page 110 STAT. 227]]

    retary of Defense on January 4, 1995. The report shall specifically
    address the progress being made toward meeting the following objectives:
                (1) Establishment of breech and ignition design criteria for
            rate of fire for the cannon of the Crusader.
                (2) Selection of a satisfactory ignition concept for the
            next prototype of the cannon.
                (3) Selection, on the basis of modeling and simulation, of
            design concepts to prevent chamber piston reversals, and
            validation of the selected concepts by gun and mock chamber
            firings.
                (4) Achievement of an understanding of the chemistry and
            physics of propellant burn resulting from the firing of liquid
            propellant into any target zone, and achievement, on the basis
            of modeling and simulation, of an ignition process that is
            predictable.
                (5) Completion of an analysis of the management of heat
            dissipation for the full range of performance requirements for
            the cannon, completion of concept designs supported by that
            analysis, and proposal of such concept designs for engineering.
                (6) Development, for integration into the next prototype of
            the cannon, of engineering designs to control pressure
            oscillations in the chamber of the cannon during firing.
                (7) Completion of an assessment of the sensitivity of liquid
            propellant to contamination by various materials to which it may
            be exposed throughout the handling and operation of the cannon,
            and documentation of predictable reactions of contaminated or
            sensitized liquid propellant.

        (d) Additional Matters To Be Covered by Report.--The report required
    by subsection (c) also shall contain the following:
                (1) An assertion that all the known hazards associated with
            liquid propellant have been identified and are controllable to
            acceptable levels.
                (2) An assessment of the technology for each component of
            the Crusader (the cannon, vehicle, and crew module), including,
            for each performance goal of the Crusader program (including the
            goal for total system weight), information about the maturity of
            the technology to achieve that goal, the maturity of the design
            of the technology, and the manner in which the design has been
            proven (for example, through simulation, bench testing, or
            weapon firing).
                (3) An assessment of the cost of continued development of
            the Crusader after August 1, 1996, and the cost of each unit of
            the Crusader in the year the Crusader will be completed.
    SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND
                            EXPLOSIVES.

        Of the amount appropriated pursuant to the authorization in section
    201 for explosives demilitarization technology, $15,000,000 shall be
    available to establish an integrated program for the development and
    demonstration of conventional munitions and explosives demilitarization
    technologies that comply with applicable environmental laws for the
    demilitarization and disposal of unserviceable, obsolete, or nontreaty
    compliant munitions, rocket motors, and explosives.

    [[Page 110 STAT. 228]]

    SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

        (a) Limitation.--Not more than three percent of the total amount
    appropriated for research and development under the Defense Airborne
    Reconnaissance program pursuant to the authorizations of appropriations
    in section 201 may be obligated for systems engineering and technical
    assistance (SETA) contracts until--
                (1) funds are obligated (out of such appropriated funds)
            for--
                        (A) the upgrade of U-2 aircraft senior year electro-
                    optical reconnaissance sensors to the newest
                    configuration; and
                        (B) the upgrade of the U-2 SIGINT system; and
                (2) the Under Secretary of Defense for Acquisition and
            Technology submits the report required under subsection (b).

        (b) Report on U-2-Related Upgrades.--(1) Not later than April 1,
    1996, the Under Secretary of Defense for Acquisition and Technology
    shall transmit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on obligations of funds for upgrades relating to airborne reconnaissance
    by U-2 aircraft.
        (2) The report shall set forth the specific purposes under the
    general purposes described in subparagraphs (A) and (B) of subsection
    (a)(1) for which funds have been obligated (as of the date of the
    report) and the amounts that have been obligated (as of such date) for
    those specific purposes.

      Subtitle C--Ballistic Missile Defense Act <<NOTE: Ballistic Missile
    Defense Act of 1995. 10 USC 2431 note.>> of 1995

    SEC. 231. SHORT TITLE.

        This subtitle may be cited as the ``Ballistic Missile Defense Act of
    1995''.

    SEC. 232. FINDINGS.

        Congress makes the following findings:
                (1) The emerging threat that is posed to the national
            security interests of the United States by the proliferation of
            ballistic missiles is significant and growing, both in terms of
            numbers of missiles and in terms of the technical capabilities
            of those missiles.
                (2) The deployment of ballistic missile defenses is a
            necessary, but not sufficient, element of a broader strategy to
            discourage both the proliferation of weapons of mass destruction
            and the proliferation of the means of their delivery and to
            defend against the consequences of such proliferation.
                (3) The deployment of effective Theater Missile Defense
            systems can deter potential adversaries of the United States
            from escalating a conflict by threatening or attacking United
            States forces or the forces or territory of coalition partners
            or allies of the United States with ballistic missiles armed
            with weapons of mass destruction to offset the operational and
            technical advantages of the United States and its coalition
            partners and allies.
                (4) United States intelligence officials have provided
            intelligence estimates to congressional committees that (A) the
            trend

    [[Page 110 STAT. 229]]

            in missile proliferation is toward longer range and more
            sophisticated ballistic missiles, (B) North Korea may deploy an
            intercontinental ballistic missile capable of reaching Alaska or
            beyond within five years, and (C) although a new, indigenously
            developed ballistic missile threat to the continental United
            States is not foreseen within the next ten years, determined
            countries can acquire intercontinental ballistic missiles in the
            near future and with little warning by means other than
            indigenous development.
                (5) The development and deployment by the United States and
            its allies of effective defenses against ballistic missiles of
            all ranges will reduce the incentives for countries to acquire
            such missiles or to augment existing missile capabilities.
                (6) The concept of mutual assured destruction (based upon an
            offense-only form of deterrence), which is the major
            philosophical rationale underlying the ABM Treaty, is now
            questionable as a basis for stability in a multipolar world in
            which the United States and the states of the former Soviet
            Union are seeking to normalize relations and eliminate Cold War
            attitudes and arrangements.
                (7) The development and deployment of a National Missile
            Defense system against the threat of limited ballistic missile
            attacks--
                        (A) would strengthen deterrence at the levels of
                    forces agreed to by the United States and Russia under
                    the Strategic Arms Reduction Talks Treaty (START-I); and
                        (B) would further strengthen deterrence if
                    reductions below the levels permitted under START-I
                    should be agreed to and implemented in the future.
                (8) The distinction made during the Cold War, based upon the
            technology of the time, between strategic ballistic missiles and
            nonstrategic ballistic missiles, which resulted in the
            distinction made in the ABM Treaty between strategic defense and
            nonstrategic defense, has become obsolete because of
            technological advancement (including the development by North
            Korea of long-range Taepo-Dong I and Taepo-Dong II missiles)
            and, therefore, that distinction in the ABM Treaty should be
            reviewed.

    SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

        It is the policy of the United States--
                (1) to deploy affordable and operationally effective theater
            missile defenses to protect forward-deployed and expeditionary
            elements of the Armed Forces of the United States and to
            complement the missile defense capabilities of forces of
            coalition partners and of allies of the United States; and
                (2) to seek a cooperative, negotiated transition to a regime
            that does not feature an offense-only form of deterrence as the
            basis for strategic stability.

    SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

        (a) Establishment of Core Program.--To implement the policy
    established in paragraph (1) of section 233, the Secretary of Defense
    shall restructure the core theater missile defense program to consist of
    the following systems, to be carried out so as to achieve the specified
    capabilities:
                (1) The Patriot PAC-3 system, with a first unit equipped
            (FUE) during fiscal year 1998.

    [[Page 110 STAT. 230]]

                (2) The Navy Lower Tier (Area) system, with a user
            operational evaluation system (UOES) capability during fiscal
            year 1997 and an initial operational capability (IOC) during
            fiscal year 1999.
                (3) The Theater High-Altitude Area Defense (THAAD) system,
            with a user operational evaluation system (UOES) capability not
            later than fiscal year 1998 and a first unit equipped (FUE) not
            later than fiscal year 2000.
                (4) The Navy Upper Tier (Theater Wide) system, with a user
            operational evaluation system (UOES) capability during fiscal
            year 1999 and an initial operational capability (IOC) during
            fiscal year 2001.

        (b) Use of Streamlined Acquisition Procedures.--The Secretary of
    Defense shall prescribe and use streamlined acquisition policies and
    procedures to reduce the cost and increase the efficiency of developing
    and deploying the theater missile defense systems specified in
    subsection (a).
        (c) Interoperability and Support of Core Systems.--To maximize
    effectiveness and flexibility of the systems comprising the core theater
    missile defense program, the Secretary of Defense shall ensure that
    those systems are integrated and complementary and are fully capable of
    exploiting external sensor and battle management support from systems
    such as--
                (A) the Cooperative Engagement Capability (CEC) system of
            the Navy;
                (B) airborne sensors; and
                (C) space-based sensors (including, in particular, the Space
            and Missile Tracking System).

        (d) Follow-on Systems.--(1) The Secretary of Defense shall prepare
    an affordable development plan for theater missile defense systems to be
    developed as follow-on systems to the core systems specified in
    subsection (a). The Secretary shall make the selection of a system for
    inclusion in the plan based on the capability of the system to satisfy
    military requirements not met by the systems in the core program and on
    the capability of the system to use prior investments in technologies,
    infrastructure, and battle-management capabilities that are incorporated
    in, or associated with, the systems in the core program.
        (2) <<NOTE: Notice.>> The Secretary may not proceed with the
    development of a follow-on theater missile defense system beyond the
    Demonstration/Validation stage of development unless the Secretary
    designates that system as a part of the core program under this section
    and submits to the congressional defense committees notice of that
    designation. <<NOTE: Reports.>> The Secretary shall include with any
    such notification a report describing--
                (A) the requirements for the system and the specific threats
            that such system is designed to counter;
                (B) how the system will relate to, support, and build upon
            existing core systems;
                (C) the planned acquisition strategy for the system; and
                (D) a preliminary estimate of total program cost for that
            system and the effect of development and acquisition of such
            system on Department of Defense budget projections.

        (e) Program Accountability Report.--(1) As part of the annual report
    of the Ballistic Missile Defense Organization required by section 224 of
    Public Law 101-189 (10 U.S.C. 2431 note), the Secretary of Defense shall
    describe the technical milestones, the

    [[Page 110 STAT. 231]]

    schedule, and the cost of each phase of development and acquisition
    (together with total estimated program costs) for each core and follow-
    on theater missile defense program.
        (2) As part of such report, the Secretary shall describe, with
    respect to each program covered in the report, any variance in the
    technical milestones, program schedule milestones, and costs for the
    program compared with the information relating to that program in the
    report submitted in the previous year and in the report submitted in the
    first year in which that program was covered.
        (f) <<NOTE: Certification.>> Reports on TMD System Limitations Under
    ABM Treaty.--(1) Whenever, after January 1, 1993, the Secretary of
    Defense issues a certification with respect to the compliance of a
    particular Theater Missile Defense system with the ABM Treaty, the
    Secretary shall transmit to the Committee on Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives a copy of such certification. Such transmittal shall be
    made not later than 30 days after the date on which such certification
    is issued, except that in the case of a certification issued before the
    date of the enactment of this Act, such transmittal shall be made not
    later than 60 days after the date of the enactment of this Act.

        (2) If a certification under paragraph (1) is based on application
    of a policy concerning United States compliance with the ABM Treaty that
    differs from the policy described in section 235(b)(1), the Secretary
    shall include with the transmittal under that paragraph a report
    providing a detailed assessment of--
                (A) how the policy applied differs from the policy described
            in section 235(b)(1); and
                (B) how the application of that policy (rather than the
            policy described in section 235(b)(1)) will affect the cost,
            schedule, and performance of that system.
    SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN
                            INTERNATIONAL AGREEMENT CONCERNING THEATER
                            MISSILE DEFENSE SYSTEMS.

        (a) Findings.--(1) Congress hereby reaffirms--
                (A) the finding in section 234(a)(7) of the National Defense
            Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107
            Stat. 1595; 10 U.S.C. 2431 note) that the ABM Treaty was not
            intended to, and does not, apply to or limit research,
            development, testing, or deployment of missile defense systems,
            system upgrades, or system components that are designed to
            counter modern theater ballistic missiles, regardless of the
            capabilities of such missiles, unless those systems, system
            upgrades, or system components are tested against or have
            demonstrated capabilities to counter modern strategic ballistic
            missiles; and
                (B) the statement in section 232 of the National Defense
            Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
            Stat. 2700) that the United States shall not be bound by any
            international agreement entered into by the President that would
            substantively modify the ABM Treaty unless the agreement is
            entered into pursuant to the treaty making power of the
            President under the Constitution.

        (2) Congress also finds that the demarcation standard described in
    subsection (b)(1) for compliance of a missile defense system,

    [[Page 110 STAT. 232]]

    system upgrade, or system component with the ABM Treaty is based upon
    current technology.
        (b) Sense of Congress Concerning Compliance Policy.--It is the sense
    of Congress that--
                (1) unless a missile defense system, system upgrade, or
            system component (including one that exploits data from space-
            based or other external sensors) is flight tested in an ABM-
            qualifying flight test (as defined in subsection (e)), that
            system, system upgrade, or system component has not, for
            purposes of the ABM Treaty, been tested in an ABM mode nor been
            given capabilities to counter strategic ballistic missiles and,
            therefore, is not subject to any application, limitation, or
            obligation under the ABM Treaty; and
                (2) any international agreement that would limit the
            research, development, testing, or deployment of missile defense
            systems, system upgrades, or system components that are designed
            to counter modern theater ballistic missiles in a manner that
            would be more restrictive than the compliance criteria specified
            in paragraph (1) should be entered into only pursuant to the
            treaty making powers of the President under the Constitution.

        (c) Prohibition on Funding.--Funds appropriated or otherwise made
    available to the Department of Defense for fiscal year 1996 may not be
    obligated or expended to implement an agreement, or any understanding
    with respect to interpretation of the ABM Treaty, between the United
    States and any of the independent states of the former Soviet Union
    entered into after January 1, 1995, that--
                (1) would establish a demarcation between theater missile
            defense systems and anti-ballistic missile systems for purposes
            of the ABM Treaty; or
                (2) would restrict the performance, operation, or deployment
            of United States theater missile defense systems.

        (d) Exceptions.--Subsection (c) does not apply--
                (1) to the extent provided by law in an Act enacted after
            this Act;
                (2) to expenditures to implement that portion of any such
            agreement or understanding that implements the policy set forth
            in subsection (b)(1); or
                (3) to expenditures to implement any such agreement or
            understanding that is approved as a treaty or by law.

        (e) ABM-Qualifying Flight Test Defined.--For purposes of this
    section, an ABM-qualifying flight test is a flight test against a
    ballistic missile which, in that flight test, exceeds (1) a range of
    3,500 kilometers, or (2) a velocity of 5 kilometers per second.

    SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

        It is in the interest of the United States to develop its own
    missile defense capabilities in a manner that will permit the United
    States to complement the missile defense capabilities developed and
    deployed by its allies and possible coalition partners. Therefore, the
    Congress urges the President--
                (1) to pursue high-level discussions with allies of the
            United States and selected other states on the means and methods
            by which the parties on a bilateral basis can cooperate in the
            development, deployment, and operation of ballistic missile
            defenses;

    [[Page 110 STAT. 233]]

                (2) to take the initiative within the North Atlantic Treaty
            Organization to develop consensus in the Alliance for a timely
            deployment of effective ballistic missile defenses by the
            Alliance; and
                (3) in the interim, to seek agreement with allies of the
            United States and selected other states on steps the parties
            should take, consistent with their national interests, to reduce
            the risks posed by the threat of limited ballistic missile
            attacks, such steps to include--
                        (A) the sharing of early warning information derived
                    from sensors deployed by the United States and other
                    states;
                        (B) the exchange on a reciprocal basis of technical
                    data and technology to support both joint development
                    programs and the sale and purchase of missile defense
                    systems and components; and
                        (C) operational level planning to exploit current
                    missile defense capabilities and to help define future
                    requirements.

    SEC. 237. ABM TREATY DEFINED.

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

    SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

        The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is repealed.

             Subtitle D--Other Ballistic Missile Defense Provisions

    SEC. 251. <<NOTE: 10 USC 221 note.>> BALLISTIC MISSILE DEFENSE PROGRAM
                ELEMENTS.

        (a) Elements Specified.--In the budget justification materials
    submitted to Congress in support of the Department of Defense budget for
    any fiscal year after fiscal year 1996 (as submitted with the budget of
    the President under section 1105(a) of title 31, United States Code),
    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 Lower Tier (Area) system.
                (3) The Theater High-Altitude Area Defense (THAAD) system.
                (4) The Navy Upper Tier (Theater Wide) system.
                (5) The Corps Surface-to-Air Missile (SAM) system.
                (6) Other Theater Missile Defense Activities.
                (7) National Missile Defense.
                (8) Follow-On and Support Technologies.

        (b) Treatment of Core Theater Missile Defense Programs.--Amounts
    requested for core theater missile defense programs specified in section
    234 shall be specified in individual, dedicated program elements, and
    amounts appropriated for such

    [[Page 110 STAT. 234]]

    programs shall be available only for activities covered by those program
    elements.
        (c) BM/C<SUP>3</SUP>I Programs.--Amounts requested for programs,
    projects, and activities involving battle management, command, control,
    communications, and intelligence (BM/C<SUP>3</SUP>I) shall be included
    in the ``Other Theater Missile Defense Activities'' program element or
    the ``National Missile Defense'' program element, as determined on the
    basis of the primary objectives involved.
        (d) Management and Support.--Each program element shall include
    requests for the amounts necessary for the management and support of the
    programs, projects, and activities contained in that program element.

    SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

        Subsection (a) of section 237 of the National Defense Authorization
    Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1600) is amended
    to read as follows:
        ``(a) <<NOTE: Certification.>> Testing of Theater Missile Defense
    Interceptors.--(1) The Secretary of Defense may not approve a theater
    missile defense interceptor program proceeding beyond the
    low-rate initial production acquisition stage until the Secretary
    certifies to the congressional defense committees that such program has
    successfully completed initial operational test and evaluation.

        ``(2) In order to be certified under paragraph (1) as having been
    successfully completed, the initial operational test and evaluation
    conducted with respect to an interceptors program must have included
    flight tests--
                ``(A) that were conducted with multiple interceptors and
            multiple targets in the presence of realistic countermeasures;
            and
                ``(B) the results of which demonstrate the achievement by
            the interceptors of the baseline performance thresholds.

        ``(3) For purposes of this subsection, the baseline performance
    thresholds with respect to a program are the weapons systems performance
    thresholds specified in the baseline description for the system
    established (pursuant to section 2435(a)(1) of title 10, United States
    Code) before the program entered the engineering and manufacturing
    development stage.
        ``(4) The number of flight tests described in paragraph (2) that are
    required in order to make the certification under paragraph (1) shall be
    a number determined by the Secretary of Defense to be sufficient for the
    purposes of this section.
        ``(5) The Secretary may augment live-fire testing to demonstrate
    weapons system performance goals for purposes of the certification under
    paragraph (1) through the use of modeling and simulation that is
    validated by ground and flight testing.''.

    SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

        The following provisions of law are repealed:
                (1) Section 222 of the Department of Defense Authorization
            Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431
            note).
                (2) Section 225 of the Department of Defense Authorization
            Act, 1986 (Public Law 99-145; 99 Stat. 614).
                (3) Section 226 of the National Defense Authorization Act
            for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat.
            1057; 10 U.S.C. 2431 note).

    [[Page 110 STAT. 235]]

                (4) Section 8123 of the Department of Defense Appropriations
            Act, 1989 (Public Law 100-463; 102 Stat. 2270-40).
                (5) Section 8133 of the Department of Defense Appropriations
            Act, 1992 (Public Law 102-172; 105 Stat. 1211).
                (6) Section 234 of the National Defense Authorization Act
            for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1595; 10
            U.S.C. 2431 note).
                (7) Section 242 of the National Defense Authorization Act
            for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1603; 10
            U.S.C. 2431 note).
                (8) Section 235 of the National Defense Authorization Act
            for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701; 10
            U.S.C. 221 note).
                (9) Section 2609 of title 10, United States Code.

             Subtitle E--Miscellaneous Reviews, Studies, and Reports

    SEC. 261. PRECISION-GUIDED MUNITIONS.

        (a) Analysis Required.--The Secretary of Defense shall perform an
    analysis of the full range of precision-guided munitions in production
    and in research, development, test, and evaluation in order to determine
    the following:
                (1) The numbers and types of precision-guided munitions that
            are needed to provide complementary capabilities against each
            target class.
                (2) The feasibility of carrying out joint development and
            procurement of additional types of munitions by more than one of
            the Armed Forces.
                (3) The feasibility of integrating a particular precision-
            guided munition on multiple service platforms.
                (4) The economy and effectiveness of continuing the
            acquisition of--
                        (A) interim precision-guided munitions; or
                        (B) precision-guided munitions that, as a result of
                    being procured in decreasing numbers to meet decreasing
                    quantity requirements, have increased in cost per unit
                    by more than 50 percent over the cost per unit for such
                    munitions as of December 1, 1991.

        (b) Report.--(1) Not later than April 15, 1996, the Secretary shall
    submit to Congress a report on the findings and other results of the
    analysis.
        (2) The report shall include a detailed discussion of the process by
    which the Department of Defense--
                (A) approves the development of new precision-guided
            munitions;
                (B) avoids duplication and redundancy in the precision-
            guided munitions programs of the Army, Navy, Air Force, and
            Marine Corps;
                (C) ensures rationality in the relationship between the
            funding plans for precision-guided munitions modernization for
            fiscal years following fiscal year 1996 and the costs of such
            modernization for those fiscal years; and
                (D) identifies by name and function each person responsible
            for approving each new precision-guided munition for initial
            low-rate production.

    [[Page 110 STAT. 236]]

        (c) Funding Limitation.--Funds authorized to be appropriated by this
    Act may not be expended for research, development, test, and evaluation
    or procurement of interim precision-guided munitions after April 15,
    1996, unless the Secretary of Defense has submitted the report under
    subsection (b).
        (d) Interim Precision-Guided Munition Defined.--For purposes of
    subsection (c), a precision-guided munition is an interim precision-
    guided munition if the munition is being procured in fiscal year 1996,
    but funding is not proposed for additional procurement of the munition
    in the fiscal years after fiscal year 1996 that are covered by the
    future years defense program submitted to Congress in 1995 under section
    221(a) of title 10, United States Code.

    SEC. 262. <<NOTE: 10 USC 113 note.>> REVIEW OF C<SUP>4</SUP>I BY
                NATIONAL RESEARCH COUNCIL.

        (a) Review by National Research Council.--Not later than 90 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall request the National Research Council of the National Academy of
    Sciences to conduct a comprehensive review of current and planned
    service and defense-wide programs for command, control, communications,
    computers, and intelligence (C<SUP>4</SUP>I) with a special focus on
    cross-service and inter-service issues.
        (b) Matters To Be Assessed in Review.--The review shall address the
    following:
                (1) The match between the capabilities provided by current
            service and defense-wide C<SUP>4</SUP>I programs and the actual
            needs of users of these programs.
                (2) The interoperability of service and defense-wide
            C<SUP>4</SUP>I systems that are planned to be operational in the
            future.
                (3) The need for an overall defense-wide architecture for
            C<SUP>4</SUP>I.
                (4) Proposed strategies for ensuring that future
            C<SUP>4</SUP>I acquisitions are compatible and interoperable
            with an overall architecture.
                (5) Technological and administrative aspects of the
            C<SUP>4</SUP>I modernization effort to determine the soundness
            of the underlying plan and the extent to which it is consistent
            with concepts for joint military operations in the future.

        (c) Two-Year Period for Conducting Review.--The review shall be
    conducted over the two-year period beginning on the date on which the
    National Research Council and the Secretary of Defense enter into a
    contract or other agreement for the conduct of the review.
        (d) Reports.--(1) In the contract or other agreement for the conduct
    of the review, the Secretary of Defense shall provide that the National
    Research Council shall submit to the Department of Defense and Congress
    interim reports and progress updates on a regular basis as the review
    proceeds. A final report on the review shall set forth the findings,
    conclusions, and recommendations of the Council for defense-wide and
    service C<SUP>4</SUP>I programs and shall be submitted to the Committee
    on Armed Services of the Senate, the Committee on National Security of
    the House of Representatives, and the Secretary of Defense.
        (2) To the maximum degree possible, the final report shall be
    submitted in unclassified form with classified annexes as necessary.

    [[Page 110 STAT. 237]]

        (e) Interagency Cooperation With Study.--All military departments,
    defense agencies, and other components of the Department of Defense
    shall cooperate fully with the National Research Council in its
    activities in carrying out the review under this section.
        (f) Expedited Processing of Security Clearances for Study.--For the
    purpose of facilitating the commencement of the study under this
    section, the Secretary of Defense shall expedite to the fullest degree
    possible the processing of security clearances that are necessary for
    the National Research Council to conduct the study.
        (g) Funding.--Of the amount authorized to be appropriated in section
    201 for defense-wide activities, $900,000 shall be available for the
    study under this section.
    SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH ACCOUNTS OF
                            MILITARY DEPARTMENTS.

        (a) Analysis Required.--The Secretary of Defense shall conduct an
    analysis of the cost and effectiveness of consolidating the basic
    research accounts of the military departments. The analysis shall
    determine potential infrastructure savings and other benefits of co-
    locating and consolidating the management of basic research.
        (b) Deadline.--On or before March 1, 1996, the Secretary shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the analysis conducted under subsection (a).
    SEC. 264. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO FISCAL
                            YEAR FOR ANNUAL REPORT ON CERTAIN
                            CONTRACTS TO COLLEGES AND UNIVERSITIES.

        Section 2361(c)(2) of title 10, United States Code, is amended--
                (1) by striking out ``calendar year'' and inserting in lieu
            thereof ``fiscal year''; and
                (2) by striking out ``the year after the year'' and
            inserting in lieu thereof ``the fiscal year after the fiscal
            year''.
    SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

        (a) Findings.--Congress finds the following:
                (1) It is in the Nation's long-term national security
            interests for the United States to maintain preeminence in the
            area of aeronautical research and test capabilities.
                (2) Continued advances in aeronautical science and
            engineering are critical to sustaining the strategic and
            tactical air superiority of the United States and coalition
            forces, as well as United States economic security and
            international aerospace leadership.
                (3) It is in the national security and economic interests of
            the United States and the budgetary interests of the Department
            of Defense for the department to encourage the establishment of
            active partnerships between the department and other Government
            agencies, academic institutions, and private industry to
            develop, maintain, and enhance aeronautical research and test
            capabilities.

        (b) Review.--The Secretary of Defense shall conduct a comprehensive
    review of the aeronautical research and test facilities and capabilities
    of the United States in order to assess the current condition of such
    facilities and capabilities.

    [[Page 110 STAT. 238]]

        (c) Report.--(1) Not later than March 1, 1996, the Secretary of
    Defense shall submit to the congressional defense committees a report
    setting forth in detail the findings of the review required by
    subsection (b).
        (2) The report shall include the following:
                (A) The options for providing affordable, operable,
            reliable, and responsive long-term aeronautical research and
            test capabilities for military and civilian purposes and for the
            organization and conduct of such capabilities within the
            Department or through shared operations with other Government
            agencies, academic institutions, and private industry.
                (B) The projected costs of such options, including costs of
            acquisition and technical and financial arrangements (including
            the use of Government facilities for reimbursable private use).
                (C) Recommendations on the most efficient and economic means
            of developing, maintaining, and continually modernizing
            aeronautical research and test capabilities to meet current,
            planned, and prospective military and civilian needs.

                            Subtitle F--Other Matters

    SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

        Section 216 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2693) is amended--
                (1) in subsection (a), by striking out ``to help achieve''
            and all that follows through the end of the subsection and
            inserting in lieu thereof ``to ensure that lithographic
            processes being developed by United States-owned companies or
            United States-incorporated companies operating in the United
            States will lead to superior performance electronics systems for
            the Department of Defense.'';
                (2) in subsection (b), by adding at the end the following
            new paragraph:

        ``(3) The Director of the Defense Advanced Research Projects Agency
    may set priorities and funding levels for various technologies being
    developed for the ALP and shall consider funding recommendations made by
    the Semiconductor Industry Association as being advisory in nature.'';
                (3) in subsection (c)--
                        (A) by inserting ``Defense'' before ``Advanced'';
                    and
                        (B) by striking out ``ARPA'' both places it appears
                    and inserting in lieu thereof ``DARPA''; and
                (4) by adding at the end the following:

        ``(d) Definitions.--In this section:
                ``(1) The term `United States-owned company' means a company
            the majority ownership or control of which is held by citizens
            of the United States.
                ``(2) The term `United States-incorporated company' means a
            company that the Secretary of Defense finds is incorporated in
            the United States and has a parent company that is incorporated
            in a country--
                        ``(A) that affords to United States-owned companies
                    opportunities, comparable to those afforded to any other
                    company, to participate in any joint venture similar to

    [[Page 110 STAT. 239]]

                    those authorized under section 28 of the National
                    Institute of Standards and Technology Act (15 U.S.C.
                    278n);
                        ``(B) that affords to United States-owned companies
                    local investment opportunities comparable to those
                    afforded to any other company; and
                        ``(C) that affords adequate and effective protection
                    for the intellectual property rights of United States-
                    owned companies.''.
    SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) SYSTEM.

        (a) Limitations.--(1) The Secretary of the Army may not obligate
    more than $280,000,000 (based on fiscal year 1995 constant dollars) to
    develop and deliver for test and evaluation by the Army the following
    items:
                (A) 44 enhanced fiber optic guided test missiles.
                (B) 256 fully operational enhanced fiber optic guided
            missiles.
                (C) 12 fully operational fire units.

        (2) The Secretary of the Army may not spend funds for the enhanced
    fiber optic guided missile (EFOG-M) system after September 30, 1998, if
    the items described in paragraph (1) have not been delivered to the Army
    by that date and at a cost not greater than the amount set forth in
    paragraph (1).
        (3) The Secretary of the Army may not enter into an advanced
    development phase for the EFOG-M system unless--
                (A) an advanced concept technology demonstration of the
            system has been successfully completed; and
                (B) the Secretary certifies to the congressional defense
            committees that there is a requirement for the EFOG-M system
            that is supported by a cost and operational effectiveness
            analysis.

        (b) Government-Furnished Equipment.--The Secretary of the Army shall
    ensure that all Government-furnished equipment that the Army agrees to
    provide under the contract for the EFOG-M system is provided to the
    prime contractor in accordance with the terms of the contract.
    SEC. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE
                            EXPERIMENTAL PROGRAM TO STIMULATE
                            COMPETITIVE RESEARCH.

        Subparagraph (A) of section 257(d)(2) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2705; 10 U.S.C. 2358 note) is amended to read as follows:
                ``(A) the average annual amount of all Department of Defense
            obligations for science and engineering research and development
            that were in effect with institutions of higher education in the
            State for the three fiscal years preceding the fiscal year for
            which the designation is effective or for the last three fiscal
            years for which statistics are available is less than the amount
            determined by multiplying 60 percent times the amount equal to
            \1/50\ of the total average annual amount of all Department of
            Defense obligations for science and engineering research and
            development that were in effect with institutions of higher
            education in the United States for such three preceding or last
            fiscal years, as the case may be (to be determined in
            consultation with the Secretary of Defense);''.

    [[Page 110 STAT. 240]]

    SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

        (a) In General.--The Secretary of Defense shall undertake an
    initiative to coordinate and strengthen the cruise missile defense
    programs of the Department of Defense to ensure that the United States
    develops and deploys affordable and operationally effective defenses
    against existing and future cruise missile threats to United States
    military forces and operations.
        (b) Coordination With Ballistic Missile Defense Efforts.--In
    carrying out subsection (a), the Secretary shall ensure that, to the
    extent practicable, the cruise missile defense programs of the
    Department of Defense and the ballistic missile defense programs of the
    Department of Defense are coordinated with each other and that those
    programs are mutually supporting.

        (c) Defenses Against Existing and Near-Term Cruise Missile
    Threats.--As part of the initiative under subsection (a), the Secretary
    shall ensure that appropriate existing and planned air defense systems
    are upgraded to provide an affordable and operationally effective
    defense against existing and near-term cruise missile threats to United
    States military forces and operations.
        (d) Defenses Against Advanced Cruise Missiles.--As part of the
    initiative under subsection (a), the Secretary shall undertake a well-
    coordinated development program to support the future deployment of
    cruise missile defense systems that are affordable and operationally
    effective against advanced cruise missiles, including cruise missiles
    with low observable features.
        (e) Implementation Plan.--Not later than the date on which the
    President submits the budget for fiscal year 1997 under section 1105 of
    title 31, United States Code, the Secretary of Defense shall submit to
    the congressional defense committees a detailed plan, in unclassified
    and classified forms, as necessary, for carrying out this section. The
    plan shall include an assessment of the following:
                (1) The systems of the Department of Defense that currently
            have or could have cruise missile defense capabilities and
            existing programs of the Department of Defense to improve these
            capabilities.
                (2) The technologies that could be deployed in the near- to
            mid-term to provide significant advances over existing cruise
            missile defense capabilities and the investments that would be
            required to ready those technologies for deployment.
                (3) The cost and operational tradeoffs, if any, between (A)
            upgrading existing air and missile defense systems, and (B)
            accelerating follow-on systems with significantly improved
            capabilities against advanced cruise missiles.
                (4) The organizational and management changes that would
            strengthen and further coordinate the cruise missile defense
            programs of the Department of Defense, including the
            disadvantages, if any, of implementing such changes.

        (f) Definition.--For the purposes of this section, the term ``cruise
    missile defense programs'' means the programs, projects, and activities
    of the military departments, the Advanced Research Projects Agency, and
    the Ballistic Missile Defense Organization relating to development and
    deployment of defenses against cruise missiles.

    [[Page 110 STAT. 241]]

    SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUPPORT
                            PROGRAM.

        Section 802 of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 107 Stat. 1701) <<NOTE: 10 USC 2358
    note.>> is amended--
                (1) in subsections (a) and (b), by striking out ``shall''
            both places it appears and inserting in lieu thereof ``may'';
            and
                (2) in subsection (e), by striking out the sentence
            beginning with ``Such selection process''.

    SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

        (a) In General.--Section 2525 of title 10, United States Code, is
    amended as follows:
                (1) The heading is amended by striking out the second and
            third words.
                (2) Subsection (a) is amended--
                        (A) by striking out ``Science and''; and
                        (B) by inserting after the first sentence the
                    following: ``The Secretary shall use the joint planning
                    process of the directors of the Department of Defense
                    laboratories in establishing the program.''.
                (3) Subsection (c) is amended--
                        (A) by inserting ``(1)'' after ``(c) Execution.--'';
                    and
                        (B) by adding at the end the following:

        ``(2) The Secretary shall seek, to the extent practicable, the
    participation of manufacturers of manufacturing equipment in the
    projects under the program.''.
                (4) Subsection (d) is amended--
                        (A) in paragraph (2)--
                              (i) by striking out ``or'' at the end of
                          subparagraph (A);
                              (ii) by striking out the period at the end of
                          subparagraph (B) and inserting in lieu thereof ``;
                          or''; and
                              (iii) by adding at the end the following new
                          subparagraph:
                ``(C) will be carried out by an institution of higher
            education.''; and
                        (B) by adding at the end the following new
                    paragraphs:

        ``(3) At least 25 percent of the funds available for the program
    each fiscal year shall be used for awarding grants and entering into
    contracts, cooperative agreements, and other transactions on a cost-
    share basis under which the ratio of recipient cost to Government cost
    is two to one.
        ``(4) If the requirement of paragraph (3) cannot be met by July 15
    of a fiscal year, the Under Secretary of Defense for Acquisition and
    Technology may waive the requirement and obligate the balance of the
    funds available for the program for that fiscal year on a cost-share
    basis under which the ratio of recipient cost to Government cost is less
    than two to one. Before implementing any such waiver, 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
    the reasons for the waiver.''.

    [[Page 110 STAT. 242]]

        (b) Clerical Amendment.--The item relating to section 2525 in the
    table of sections at the beginning of subchapter IV of chapter 148 of
    title 10, United States Code, is amended to read as follows:

    ``2525. Manufacturing Technology Program.''.

    SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LABORATORIES
                            AND TEST AND EVALUATION CENTERS.

        (a) Five-Year Plan.--The Secretary of Defense, acting through the
    Vice Chief of Staff of the Army, the Vice Chief of Naval Operations, and
    the Vice Chief of Staff of the Air Force (in their roles as test and
    evaluation executive agent board of directors) shall develop a five-year
    plan to consolidate and restructure the laboratories and test and
    evaluation centers of the Department of Defense.
        (b) Objective.--The plan shall set forth the specific actions needed
    to consolidate the laboratories and test and evaluation centers into as
    few laboratories and centers as is practical and possible, in the
    judgment of the Secretary, by October 1, 2005.
        (c) Previously Developed Data Required To Be Used.--In developing
    the plan, the Secretary shall use the following:
                (1) Data and results obtained by the Test and Evaluation
            Joint Cross-Service Group and the Laboratory Joint Cross-Service
            Group in developing recommendations for the 1995 report of the
            Defense Base Closure and Realignment Commission.
                (2) The report dated March 1994 on the consolidation and
            streamlining of the test and evaluation infrastructure,
            commissioned by the test and evaluation board of directors,
            along with all supporting data and reports.

        (d) Matters To Be Considered.--In developing the plan, the Secretary
    shall consider, at a minimum, the following:
                (1) Consolidation of common support functions, including the
            following:
                        (A) Aircraft (fixed wing and rotary) support.
                        (B) Weapons support.
                        (C) Space systems support.
                        (D) Support of command, control, communications,
                    computers, and intelligence.
                (2) The extent to which any military construction,
            acquisition of equipment, or modernization of equipment is
            planned at the laboratories and centers.
                (3) The encroachment on the laboratories and centers by
            residential and industrial expansion.
                (4) The total cost to the Federal Government of continuing
            to operate the laboratories and centers.
                (5) The cost savings and program effectiveness of locating
            laboratories and centers at the same sites.
                (6) Any loss of expertise resulting from the consolidations.
                (7) Whether any legislation is neccessary to provide the
            Secretary with any additional authority necessary to accomplish
            the downsizing and consolidation of the laboratories and
            centers.

        (e) Report.--Not later than May 1, 1996, the Secretary of Defense
    shall submit to the congressional defense committees a report on the
    plan. The report shall include an identification of any additional
    legislation that the Secretary considers necessary in order for the
    Secretary to accomplish the downsizing and consolidation of the
    laboratories and centers.

    [[Page 110 STAT. 243]]

        (f) Limitation.--Of the amounts appropriated or otherwise made
    available pursuant to an authorization of appropriations in section 201
    for the central test and evaluation investment development program, not
    more than 75 percent may be obligated before the report required by
    subsection (e) is submitted to Congress.

    SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

        (a) Requirement.--The Secretary of Defense shall ensure that, in
    evaluating proposals submitted in response to a solicitation issued for
    a contract for the T-38 Avionics Upgrade Program, the proposal of an
    entity may not be considered unless--
                (1) in the case of an entity that conducts substantially all
            of its business in a foreign country, the foreign country
            provides equal access to similar contract solicitations in that
            country to United States entities; and
                (2) in the case of an entity that conducts business in the
            United States but that is owned or controlled by a foreign
            government or by an entity incorporated in a foreign country,
            the foreign government or foreign country of incorporation
            provides equal access to similar contract solicitations in that
            country to United States entities.

        (b) Definition.--In this section, the term ``United States entity''
    means an entity that is owned or controlled by persons a majority of
    whom are United States citizens.

    SEC. 279. GLOBAL POSITIONING SYSTEM.

        (a) Conditional Prohibition on Use of Selective Availability
    Feature.--Except as provided in subsection (b), after
    May 1, 1996, the Secretary of Defense may not (through use of the
    feature known as ``selective availability'') deny access of non-
    Department of Defense users to the full capabilities of the Global
    Positioning System.
        (b) Plan.--Subsection (a) shall cease to apply upon submission by
    the Secretary of Defense to the Committee on Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives of a plan for enhancement of the Global Positioning
    System that provides for--
                (1) development and acquisition of effective capabilities to
            deny hostile military forces the ability to use the Global
            Positioning System without hindering the ability of United
            States military forces and civil users to have access to and use
            of the system, together with a specific date by which those
            capabilities could be operational; and
                (2) development and acquisition of receivers for the Global
            Positioning System and other techniques for weapons and weapon
            systems that provide substantially improved resistance to
            jamming and other forms of electronic interference or
            disruption, together with a specific date by which those
            receivers and other techniques could be operational with United
            States military forces.
    SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT FOR THE
                            NATIONAL SCIENCE CENTER FOR COMMUNICATIONS
                            AND ELECTRONICS.

        (a) Purpose.--Subsection (b)(2) of section 1459 of the Department of
    Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 763) is
    amended by striking out ``to make available'' and all that follows and
    inserting in lieu thereof ``to provide for the

    [[Page 110 STAT. 244]]

    management, operation, and maintenance of those areas in the national
    science center that are designated for use by the Army and to provide
    incidental support for the operation of those areas in the center that
    are designated for general use.''.
        (b) Authority for Support.--Subsection (c) of such section is
    amended to read as follows:
        ``(c) National Science Center.--(1) The Secretary may manage,
    operate, and maintain facilities at the center under terms and
    conditions prescribed by the Secretary for the purpose of conducting
    educational outreach programs in accordance with chapter 111 of title
    10, United States Code.
        ``(2) The Foundation, or NSC Discovery Center, Incorporated, a
    nonprofit corporation of the State of Georgia, shall submit to the
    Secretary for review and approval all matters pertaining to the
    acquisition, design, renovation, equipping, and furnishing of the
    center, including all plans, specifications, contracts, sites, and
    materials for the center.''.
        (c) Authority for Acceptance of Gifts and Fundraising.--Subsection
    (d) of such section is amended to read as follows:
        ``(d) Gifts and Fundraising.--(1) Subject to paragraph (3), the
    Secretary may accept a conditional or unconditional donation of money or
    property that is made for the benefit of, or in connection with, the
    center.
        ``(2) Notwithstanding any other provision of law, the Secretary may
    endorse, promote, and assist the efforts of the Foundation and NSC
    Discovery Center, Incorporated, to obtain--
                ``(A) funds for the management, operation, and maintenance
            of the center; and
                ``(B) donations of exhibits, equipment, and other property
            for use in the center.

        ``(3) The Secretary may not accept a donation under this subsection
    that is made subject to--
                ``(A) any condition that is inconsistent with an applicable
            law or regulation; or
                ``(B) except to the extent provided in appropriations Acts,
            any condition that would necessitate an expenditure of
            appropriated funds.

        ``(4) <<NOTE: Regulations.>> The Secretary shall prescribe in
    regulations the criteria to be used in determining whether to accept a
    donation. The Secretary shall include criteria to ensure that acceptance
    of a donation does not establish an unfavorable appearance regarding the
    fairness and objectivity with which the Secretary or any other officer
    or employee of the Department of Defense performs official
    responsibilities and does not compromise or appear to compromise the
    integrity of a Government program or any official involved in that
    program.''.

        (d) Authorized Uses.--Such section is amended--
                (1) by striking out subsection (f);
                (2) by redesignating subsection (g) as subsection (f); and
                (3) in paragraph (1) of subsection (f), as redesignated by
            paragraph (2), by inserting ``areas designated for use by the
            Army in'' after ``The Secretary may make''.

        (e) Alternative of Additional Development and Management.--Such
    section, as amended by subsection (d), is further amended by adding at
    the end the following:
        ``(g) Alternative or Additional Development and Management of the
    Center.--(1) The Secretary may enter into an agreement with NSC
    Discovery Center, Incorporated, to develop, manage,

    [[Page 110 STAT. 245]]

    and maintain a national science center under this section. In entering
    into an agreement with NSC Discovery Center, Incorporated, the Secretary
    may agree to any term or condition to which the Secretary is authorized
    under this section to agree for purposes of entering into an agreement
    with the Foundation.
        ``(2) The Secretary may exercise the authority under paragraph (1)
    in addition to, or instead of, exercising the authority provided under
    this section to enter into an agreement with the Foundation.''.

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for the use of the Armed Forces and other activities and agencies of the
    Department of Defense for expenses, not otherwise provided for, for
    operation and maintenance, in amounts as follows:
                (1) For the Army, $18,746,695,000.
                (2) For the Navy, $21,493,155,000.
                (3) For the Marine Corps, $2,521,822,000.
                (4) For the Air Force, $18,719,277,000.
                (5) For Defense-wide activities, $9,910,476,000.
                (6) For the Army Reserve, $1,129,191,000.
                (7) For the Naval Reserve, $868,342,000.
                (8) For the Marine Corps Reserve, $100,283,000.
                (9) For the Air Force Reserve, $1,516,287,000.
                (10) For the Army National Guard, $2,361,808,000.
                (11) For the Air National Guard, $2,760,121,000.
                (12) For the Defense Inspector General, $138,226,000.
                (13) For the United States Court of Appeals for the Armed
            Forces, $6,521,000.
                (14) For Environmental Restoration, Defense, $1,422,200,000.
                (15) For Drug Interdiction and Counter-drug Activities,
            Defense-wide, $680,432,000.
                (16) For Medical Programs, Defense, $9,876,525,000.
                (17) For support for the 1996 Summer Olympics, $15,000,000.
                (18) For Cooperative Threat Reduction programs,
            $300,000,000.
                (19) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $50,000,000.

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 1996
    for the use of the Armed Forces and other activities and agencies of the
    Department of Defense for providing capital for working capital and
    revolving funds in amounts as follows:
                (1) For the Defense Business Operations Fund, $878,700,000.
                (2) For the National Defense Sealift Fund, $1,024,220,000.

    [[Page 110 STAT. 246]]

    SEC. 303. ARMED FORCES RETIREMENT HOME.

        There is hereby authorized to be appropriated for fiscal year 1996
    from the Armed Forces Retirement Home Trust Fund the sum of $59,120,000
    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 1996 in amounts as follows:
                (1) For the Army, $50,000,000.
                (2) For the Navy, $50,000,000.
                (3) For the Air Force, $50,000,000.

        (b) Treatment of Transfers.--Amounts transferred under this
    section--
                (1) shall be merged with, and be available for the same
            purposes and the same period as, the amounts in the accounts to
            which transferred; and
                (2) may not be expended for an item that has been denied
            authorization of appropriations by Congress.

        (c) Relationship to Other Transfer Authority.--The transfer
    authority provided in this section is in addition to the transfer
    authority provided in section 1001.

    SEC. 305. CIVIL AIR PATROL.

        Of the amounts authorized to be appropriated pursuant to this Act,
    there shall be made available to the Civil Air Patrol $24,500,000, of
    which $14,704,000 shall be made available for the Civil Air Patrol
    Corporation.

                       Subtitle B--Depot-Level Activities

    SEC. 311. <<NOTE: 10 USC 2464 note.>> POLICY REGARDING PERFORMANCE OF
                DEPOT-LEVEL MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF
                DEFENSE.

        (a) Findings.--Congress makes the following findings:
                (1) The Department of Defense does not have a comprehensive
            policy regarding the performance of depot-level maintenance and
            repair of military equipment.
                (2) The absence of such a policy has caused the Congress to
            establish guidelines for the performance of such functions.
                (3) It is essential to the national security of the United
            States that the Department of Defense maintain an organic
            capability within the department, including skilled personnel,
            technical competencies, equipment, and facilities, to perform
            depot-level maintenance and repair of military equipment in
            order to ensure that the Armed Forces of the United States are
            able to meet training, operational, mobilization, and emergency
            requirements without impediment.
                (4) The organic capability of the Department of Defense to
            perform depot-level maintenance and repair of military equipment
            must satisfy known and anticipated core mainte

    [[Page 110 STAT. 247]]

            nance and repair requirements across the full range of peacetime
            and wartime scenarios.
                (5) Although it is possible that savings can be achieved by
            contracting with private-sector sources for the performance of
            some work currently performed by Department of Defense depots,
            the Department of Defense has not determined the type or amount
            of work that should be performed under contract with private-
            sector sources nor the relative costs and benefits of
            contracting for the performance of such work by those sources.

        (b) Sense of Congress.--It is the sense of Congress that there is a
    compelling need for the Department of Defense to articulate known and
    anticipated core maintenance and repair requirements, to organize the
    resources of the Department of Defense to meet those requirements
    economically and efficiently, and to determine what work should be
    performed by the private sector and how such work should be managed.

        (c) <<NOTE: Reports.>> Requirement for Policy.--Not later than March
    31, 1996, the Secretary of Defense shall develop and report to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a comprehensive policy on the
    performance of depot-level maintenance and repair for the Department of
    Defense that maintains the capability described in section 2464 of title
    10, United States Code.

        (d) Content of Policy.--In developing the policy, the Secretary of
    Defense shall do each of the following:
                (1) Identify for each military department, with the
            concurrence of the Secretary of that military department, those
            depot-level maintenance and repair activities that are necessary
            to ensure the depot-level maintenance and repair capability as
            required by section 2464 of title 10, United States Code.
                (2) Provide for performance of core depot-level maintenance
            and repair capabilities in facilities owned and operated by the
            United States.
                (3) Provide for the core capabilities to include sufficient
            skilled personnel, equipment, and facilities that--
                        (A) is of the proper size (i) to ensure a ready and
                    controlled source of technical competence and repair and
                    maintenance capability necessary to meet the
                    requirements of the National Military Strategy and other
                    requirements for responding to mobilizations and
                    military contingencies, and (ii) to provide for rapid
                    augmentation in time of emergency; and
                        (B) is assigned sufficient workload to ensure cost
                    efficiency and technical proficiency in time of peace.
                (4) Address environmental liability.
                (5) In the case of depot-level maintenance and repair
            workloads in excess of the workload required to be performed by
            Department of Defense depots, provide for competition for those
            workloads between public and private entities when there is
            sufficient potential for realizing cost savings based on
            adequate private-sector competition and technical capabilities.
                (6) Address issues concerning exchange of technical data
            between the Federal Government and the private sector.
                (7) Provide for, in the Secretary's discretion and after
            consultation with the Secretaries of the military departments,
            the transfer from one military department to another, in accord

    [[Page 110 STAT. 248]]

            ance with merit-based selection processes, workload that
            supports the core depot-level maintenance and repair
            capabilities in facilities owned and operated by the United
            States.
                (8) Require that, in any competition for a workload (whether
            among private-sector sources or between depot-level activities
            of the Department of Defense and private-sector sources), bids
            are evaluated under a methodology that ensures that appropriate
            costs to the Government and the private sector are identified.
                (9) Provide for the performance of maintenance and repair
            for any new weapons systems defined as core, under section 2464
            of title 10, United States Code, in facilities owned and
            operated by the United States.

        (e) Considerations.--In developing the policy, the Secretary shall
    take into consideration the following matters:
                (1) The national security interests of the United States.
                (2) The capabilities of the public depots and the
            capabilities of businesses in the private sector to perform the
            maintenance and repair work required by the Department of
            Defense.
                (3) Any applicable recommendations of the Defense Base
            Closure and Realignment Commission that are required to be
            implemented under the Defense Base Closure and Realignment Act
            of 1990.
                (4) The extent to which the readiness of the Armed Forces
            would be affected by a necessity to construct new facilities to
            accommodate any redistribution of depot-level maintenance and
            repair workloads that is made in accordance with the
            recommendation of the Defense Base Closure and Realignment
            Commission, under the Defense Base Closure and Realignment Act
            of 1990, that such workloads be consolidated at Department of
            Defense depots or private-sector facilities.
                (5) Analyses of costs and benefits of alternatives,
            including a comparative analysis of--
                        (A) the costs and benefits, including any readiness
                    implications, of any proposed policy to convert to
                    contractor performance of depot-level maintenance and
                    repair workloads where the workload is being performed
                    by Department of Defense personnel; and
                        (B) the costs and benefits, including any readiness
                    implications, of a policy to transfer depot-level
                    maintenance and repair workloads among depots.

        (f) Repeal of 60/40 Requirement and Requirement Relating to
    Competition.--(1) Sections 2466 and 2469 of title 10, United States
    Code, are repealed.
        (2) The table of sections at the beginning of chapter 146 of such
    title is amended by striking out the items relating to sections 2466 and
    2469.
        (3) <<NOTE: Effective date.>> The amendments made by paragraphs (1)
    and (2) shall take effect on the date (after the date of the enactment
    of this Act) on which legislation is enacted that contains a provision
    that specifically states one of the following:
                (A) ``The policy on the performance of depot-level
            maintenance and repair for the Department of Defense that was
            submitted by the Secretary of Defense to the Committee on Armed
            Services of the Senate and the Committee on National Security of
            the House of Representatives pursuant to section

    [[Page 110 STAT. 249]]

            311 of the National Defense Authorization Act for Fiscal Year
            1996 is approved.''; or
                (B) ``The policy on the performance of depot-level
            maintenance and repair for the Department of Defense that was
            submitted by the Secretary of Defense to the Committee on Armed
            Services of the Senate and the Committee on National Security of
            the House of Representatives pursuant to section 311 of the
            National Defense Authorization Act for Fiscal Year 1996 is
            approved with the following modifications:'' (with the
            modifications being stated in matter appearing after the colon).

        (g) Annual Report.--If legislation referred to in subsection (f)(3)
    is enacted, the Secretary of Defense shall, not later than March 1 of
    each year (beginning with the year after the year in which such
    legislation is enacted), submit to Congress a report that--
                (1) specifies depot maintenance core capability requirements
            determined in accordance with the procedures established to
            comply with the policy prescribed pursuant to
            subsections (d)(2) and (d)(3);
                (2) specifies the planned amount of workload to be
            accomplished by the depot-level activities of each military
            department in support of those requirements for the following
            fiscal year; and
                (3) identifies the planned amount of workload, which--
                        (A) shall be measured by direct labor hours and by
                    amounts to be expended; and
                        (B) shall be shown separately for each commodity
                    group.

        (h) Review by General Accounting Office.--(1) The Secretary shall
    make available to the Comptroller General of the United States all
    information used by the Department of Defense in developing the policy
    under subsections (c) through (e) of this section.

        (2) <<NOTE: Reports.>> Not later than 45 days after the date on
    which the Secretary submits to Congress the report required by
    subsection (c), the Comptroller General shall transmit to Congress a
    report containing a detailed analysis of the Secretary's proposed policy
    as reported under such subsection.

        (i) Report on Depot-Level Maintenance and Repair Workload.--Not
    later than March 31, 1996, the Secretary of Defense shall submit to
    Congress a report on the depot-level maintenance and repair workload of
    the Department of Defense. The report shall, to the maximum extent
    practicable, include the following:
                (1) An analysis of the need for and effect of the
            requirement under section 2466 of title 10, United States Code,
            that no more than 40 percent of the depot-level maintenance and
            repair work of the Department of Defense be contracted for
            performance by non-Government personnel, including a description
            of the effect on military readiness and the national security
            resulting from that requirement and a description of any
            specific difficulties experienced by the Department of Defense
            as a result of that requirement.
                (2) An analysis of the distribution during the five fiscal
            years ending with fiscal year 1995 of the depot-level
            maintenance and repair workload of the Department of Defense
            between depot-level activities of the Department of Defense and
            non-Government personnel, measured by direct labor hours

    [[Page 110 STAT. 250]]

            and by amounts expended, and displayed, for that five-year
            period and for each year of that period, so as to show (for each
            military department (and separately for the Navy and Marine
            Corps)) such distribution.
                (3) A projection of the distribution during the five fiscal
            years beginning with fiscal year 1997 of the depot-level
            maintenance and repair workload of the Department of Defense
            between depot-level activities of the Department of Defense and
            non-Government personnel, measured by direct labor hours and by
            amounts expended, and displayed, for that five-year period and
            for each year of that period, so as to show (for each military
            department (and separately for the Navy and Marine Corps)) such
            distribution that would be accomplished under a new policy as
            required under subsection (c).

        (j) Other Review by General Accounting Office.--(1) The Comptroller
    General of the United States shall conduct an independent audit of the
    findings of the Secretary of Defense in the report under subsection (i).
    The Secretary of Defense shall provide to the Comptroller General for
    such purpose all information used by the Secretary in preparing such
    report.
        (2) <<NOTE: Reports.>> Not later than 45 days after the date on
    which the Secretary of Defense submits to Congress the report required
    under subsection (i), the Comptroller General shall transmit to Congress
    a report containing a detailed analysis of the report submitted under
    that subsection.

    SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

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

    ``Sec. 2472. Management of depot employees

        ``(b) Annual Report.--Not later than December 1 of each fiscal year,
    the Secretary of Defense shall submit to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives a report on the number of employees employed and
    expected to be employed by the Department of Defense during that fiscal
    year to perform depot-level maintenance and repair of materiel. The
    report shall indicate whether that number is sufficient to perform the
    depot-level maintenance and repair functions for which funds are
    expected to be provided for that fiscal year for performance by
    Department of Defense employees.''.
        (b) Transfer of Subsection.--Subsection (b) of section 2466 of title
    10, United States Code, is transferred to section 2472 of such title, as
    added by subsection (a), redesignated as subsection (a), and inserted
    after the section heading.
        (c) <<NOTE: 10 USC 2472 note.>> Submission of Initial Report.--The
    report under subsection (b) of section 2472 of title 10, United States
    Code, as added by subsection (a), for fiscal year 1996 shall be
    submitted not later than March 15, 1996 (notwithstanding the date
    specified in such subsection).

    [[Page 110 STAT. 251]]

        (d) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2472. Management of depot employees.''.

    SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL
                            SHIPYARDS TO ENGAGE IN DEFENSE-RELATED
                            PRODUCTION AND SERVICES.

        Section 1425(e) of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking
    out ``September 30, 1995'' and inserting in lieu thereof ``September 30,
    1996''.
    SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING USE
                            OF CORE LOGISTICS FUNCTIONS WAIVER.

        Section 2464(b) of title 10, United States Code, is amended by
    striking out paragraphs (3) and (4) and inserting in lieu thereof the
    following new paragraph:
        ``(3) A waiver under paragraph (2) may not take effect until the end
    of the 30-day period beginning on the date on which the Secretary
    submits a report on the waiver 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.''.

                      Subtitle C--Environmental Provisions

    SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERVICES
                            UNDER ENVIRONMENTAL RESTORATION PROGRAM.

        (a) Requirements.--(1) Section 2701(d) of title 10, United States
    Code, is amended to read as follows:
        ``(d) Services of Other Agencies.--
                ``(1) In general.--Subject to paragraph (2), the Secretary
            may enter into agreements on a reimbursable or other basis with
            any other Federal agency, or with any State or local government
            agency, to obtain the services of the agency to assist the
            Secretary in carrying out any of the Secretary's
            responsibilities under this section. Services which may be
            obtained under this subsection include the identification,
            investigation, and cleanup of any off-site contamination
            resulting from the release of a hazardous substance or waste at
            a facility under the Secretary's jurisdiction.
                ``(2) Limitation on reimbursable agreements.--An agreement
            with an agency under paragraph (1) may not provide for
            reimbursement of the agency for regulatory enforcement
            activities.''.

        (2)(A) <<NOTE: 10 USC 2701 note.>> Except as provided in
    subparagraph (B), the total amount of funds available for reimbursements
    under agreements entered into under section 2710(d) of title 10, United
    States Code, as amended by paragraph (1), in fiscal year 1996 may not
    exceed $10,000,000.

        (B) The Secretary of Defense may pay in fiscal year 1996 an amount
    for reimbursements under agreements referred to in subparagraph (A) in
    excess of the amount specified in that subparagraph for that fiscal year
    if--
                (i) <<NOTE: Certification.>> the Secretary certifies to
            Congress that the payment of the amount under this subparagraph
            is essential for the

    [[Page 110 STAT. 252]]

            management of the Defense Environmental Restoration Program
            under chapter 160 of title 10, United States Code; and
                (ii) a period of 60 days has expired after the date on which
            the certification is received by Congress.

        (b) <<NOTE: 10 USC 2706 note.>> Report on Services Obtained.--The
    Secretary of Defense shall include in the report submitted to Congress
    with respect to fiscal year 1998 under section 2706(a) of title 10,
    United States Code, information on the services, if any, obtained by the
    Secretary during fiscal year 1996 pursuant to each agreement on a
    reimbursable basis entered into with a State or local government agency
    under section 2701(d) of title 10, United States Code, as amended by
    subsection (a). The information shall include a description of the
    services obtained under each agreement and the amount of the
    reimbursement provided for the services.
    SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE ENVIRONMENTAL
                            RESTORATION ACCOUNT.

        Section 2703(e) of title 10, United States Code, is amended to read
    as follows:
        ``(e) Amounts Recovered.--The following amounts shall be credited to
    the transfer account:
                ``(1) Amounts recovered under CERCLA for response actions of
            the Secretary.
                ``(2) Any other amounts recovered by the Secretary or the
            Secretary of the military department concerned from a
            contractor, insurer, surety, or other person to reimburse the
            Department of Defense for any expenditure for environmental
            response activities.''.

    SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

        (a) Goal for Certain DERA Expenditures.--It shall be the goal of the
    Secretary of Defense to limit, by the end of fiscal year 1997, spending
    for administration, support, studies, and investigations associated with
    the Defense Environmental Restoration Account to 20 percent of the total
    funding for that account.
        (b) Report.--Not later than April 1, 1996, the Secretary shall
    submit to Congress a report that contains specific, detailed information
    on--
                (1) the extent to which the Secretary has attained the goal
            described in subsection (a) as of the date of the submission of
            the report; and
                (2) if the Secretary has not attained such goal by such
            date, the actions the Secretary plans to take to attain the
            goal.
    SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION ADVISORY
                            BOARDS.

        (a) Regulations.--Paragraph (2) of subsection (d) of section 2705 of
    title 10, United States Code, is amended to read as follows:
        ``(2)(A) The Secretary shall prescribe regulations regarding the
    establishment, characteristics, composition, and funding of restoration
    advisory boards pursuant to this subsection.
        ``(B) The issuance of regulations under subparagraph (A) shall not
    be a precondition to the establishment of restoration advisory boards
    under this subsection.''.
        (b) Funding for Administrative Expenses.--Paragraph (3) of such
    subsection is amended to read as follows:

    [[Page 110 STAT. 253]]

        ``(3) The Secretary may authorize the commander of an installation
    (or, if there is no such commander, an appropriate official of the
    Department of Defense designated by the Secretary) to pay routine
    administrative expenses of a restoration advisory board established for
    that installation. Such payments shall be made from funds available
    under subsection (g).''.
        (c) Technical Assistance.--Such section is further amended by
    striking out subsection (e) and inserting in lieu thereof the following
    new subsection (e):
        ``(e) Technical Assistance.--(1) The Secretary may, upon the request
    of the technical review committee or restoration advisory board for an
    installation, authorize the commander of the installation (or, if there
    is no such commander, an appropriate official of the Department of
    Defense designated by the Secretary) to obtain for the committee or
    advisory board, as the case may be, from private sector sources
    technical assistance for interpreting scientific and engineering issues
    with regard to the nature of environmental hazards at the installation
    and the restoration activities conducted, or proposed to be conducted,
    at the installation. The commander of an installation (or, if there is
    no such commander, an appropriate official of the Department of Defense
    designated by the Secretary) shall use funds made available under
    subsection (g) for obtaining assistance under this paragraph.

        ``(2) The commander of an installation (or, if there is no such
    commander, an appropriate official of the Department of Defense
    designated by the Secretary) may obtain technical assistance under
    paragraph (1) for a technical review committee or restoration advisory
    board only if--
                ``(A) the technical review committee or restoration advisory
            board demonstrates that the Federal, State, and local agencies
            responsible for overseeing environmental restoration at the
            installation, and available Department of Defense personnel, do
            not have the technical expertise necessary for achieving the
            objective for which the technical assistance is to be obtained;
            or
                ``(B) the technical assistance--
                        ``(i) is likely to contribute to the efficiency,
                    effectiveness, or timeliness of environmental
                    restoration activities at the installation; and
                        ``(ii) is likely to contribute to community
                    acceptance of environmental restoration activities at
                    the installation.''.

        (d) Funding.--(1) Such section is further amended by adding at the
    end the following new subsection:
        ``(g) Funding.--The Secretary shall, to the extent provided in
    appropriations Acts, make funds available for administrative expenses
    and technical assistance under this section using funds in the following
    accounts:
                ``(1) In the case of a military installation not approved
            for closure pursuant to a base closure law, the Defense
            Environmental Restoration Account established under section
            2703(a) of this title.
                ``(2) In the case of an installation approved for closure
            pursuant to such a law, the Department of Defense Base Closure
            Account 1990 established under section 2906(a) of the Defense
            Base Closure and Realignment Act of 1990 (part A of title XXIX
            of Public Law 101-510; 10 U.S.C. 2687 note).''.

    [[Page 110 STAT. 254]]

        (2)(A) <<NOTE: 10 USC 2705 note.>> Subject to subparagraph (B), the
    total amount of funds made available under section 2705(g) of title 10,
    United States Code, as added by paragraph (1), for fiscal year 1996 may
    not exceed $6,000,000.

        (B) Amounts may not be made available under subsection (g) of such
    section 2705 after September 15, 1996, unless the Secretary of Defense
    publishes proposed final or interim final regulations required under
    subsection (d) of such section, as amended by subsection (a).
        (e) Definition.--Such section is further amended by adding after
    subsection (g) (as added by subsection (d)) the following new
    subsection:
        ``(h) Definition.--In this section, the term `base closure law'
    means the following:
                ``(1) Title II of the Defense Authorization Amendments and
            Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C.
            2687 note).
                ``(2) 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).
                ``(3) Section 2687 of this title.''.

        (f) Reports on Activities of Technical Review Committees and
    Restoration Advisory Boards.--Section 2706(a)(2) of title 10, United
    States Code, is amended by adding at the end the following:
                ``(J) A statement of the activities, if any, including
            expenditures for administrative expenses and technical
            assistance under section 2705 of this title, of the technical
            review committee or restoration advisory board established for
            the installation under such section during the preceding fiscal
            year.''.

    SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

        (a) <<NOTE: 33 USC 1322 note.>> Purposes.--The purposes of this
    section are to--
                (1) enhance the operational flexibility of vessels of the
            Armed Forces domestically and internationally;
                (2) stimulate the development of innovative vessel pollution
            control technology; and
                (3) advance the development by the United States Navy of
            environmentally sound ships.

        (b) Uniform National Discharge Standards Development.--Section 312
    of the Federal Water Pollution Control Act (33 U.S.C. 1322) is amended
    by adding at the end the following:
        ``(n) Uniform National Discharge Standards for Vessels of the Armed
    Forces.--
                ``(1) Applicability.--This subsection shall apply to vessels
            of the Armed Forces and discharges, other than sewage,
            incidental to the normal operation of a vessel of the Armed
            Forces, unless the Secretary of Defense finds that compliance
            with this subsection would not be in the national security
            interests of the United States.
                ``(2) Determination of discharges required to be controlled
            by marine pollution control devices.--
                        ``(A) In general.--The Administrator and the
                    Secretary of Defense, after consultation with the
                    Secretary of the department in which the Coast Guard is
                    operating, the Secretary of Commerce, and interested
                    States, shall jointly determine the discharges
                    incidental to the normal

    [[Page 110 STAT. 255]]

                    operation of a vessel of the Armed Forces for which it
                    is reasonable and practicable to require use of a marine
                    pollution control device to mitigate adverse impacts on
                    the marine environment. Notwithstanding subsection
                    (a)(1) of section 553 of title 5, United States Code,
                    the Administrator and the Secretary of Defense shall
                    promulgate the determinations in accordance with such
                    section. The Secretary of Defense shall require the use
                    of a marine pollution control device on board a vessel
                    of the Armed Forces in any case in which it is
                    determined that the use of such a device is reasonable
                    and practicable.
                        ``(B) Considerations.--In making a determination
                    under subparagraph (A), the Administrator and the
                    Secretary of Defense shall take into consideration--
                              ``(i) the nature of the discharge;
                              ``(ii) the environmental effects of the
                          discharge;
                              ``(iii) the practicability of using the marine
                          pollution control device;
                              ``(iv) the effect that installation or use of
                          the marine pollution control device would have on
                          the operation or operational capability of the
                          vessel;
                              ``(v) applicable United States law;
                              ``(vi) applicable international standards; and
                              ``(vii) the economic costs of the installation
                          and use of the marine pollution control device.
                ``(3) Performance standards for marine pollution control
            devices.--
                        ``(A) In general.--For each discharge for which a
                    marine pollution control device is determined to be
                    required under paragraph (2), the Administrator and the
                    Secretary of Defense, in consultation with the Secretary
                    of the department in which the Coast Guard is operating,
                    the Secretary of State, the Secretary of Commerce, other
                    interested Federal agencies, and interested States,
                    shall jointly promulgate Federal standards of
                    performance for each marine pollution control device
                    required with respect to the discharge. Notwithstanding
                    subsection (a)(1) of section 553 of title 5, United
                    States Code, the Administrator and the Secretary of
                    Defense shall promulgate the standards in accordance
                    with such section.
                        ``(B) Considerations.--In promulgating standards
                    under this paragraph, the Administrator and the
                    Secretary of Defense shall take into consideration the
                    matters set forth in paragraph (2)(B).
                        ``(C) Classes, types, and sizes of vessels.--The
                    standards promulgated under this paragraph may--
                              ``(i) distinguish among classes, types, and
                          sizes of vessels;
                              ``(ii) distinguish between new and existing
                          vessels; and
                              ``(iii) provide for a waiver of the
                          applicability of the standards as necessary or
                          appropriate to a particular class, type, age, or
                          size of vessel.
                ``(4) Regulations for use of marine pollution control
            devices.--The Secretary of Defense, after consultation with the
            Administrator and the Secretary of the department in which the
            Coast Guard is operating, shall promulgate such regulations

    [[Page 110 STAT. 256]]

            governing the design, construction, installation, and use of
            marine pollution control devices on board vessels of the Armed
            Forces as are necessary to achieve the standards promulgated
            under paragraph (3).
                ``(5) Deadlines; effective date.--
                        ``(A) Determinations.--The Administrator and the
                    Secretary of Defense shall--
                              ``(i) make the initial determinations under
                          paragraph (2) not later than 2 years after the
                          date of the enactment of this subsection; and
                              ``(ii) every 5 years--
                                        ``(I) review the determinations; and
                                        ``(II) if necessary, revise the
                                    determinations based on significant new
                                    information.
                        ``(B) Standards.--The Administrator and the
                    Secretary of Defense shall--
                              ``(i) promulgate standards of performance for
                          a marine pollution control device under paragraph
                          (3) not later than 2 years after the date of a
                          determination under paragraph (2) that the marine
                          pollution control device is required; and
                              ``(ii) every 5 years--
                                        ``(I) review the standards; and
                                        ``(II) if necessary, revise the
                                    standards, consistent with paragraph
                                    (3)(B) and based on significant new
                                    information.
                        ``(C) Regulations.--The Secretary of Defense shall
                    promulgate regulations with respect to a marine
                    pollution control device under paragraph (4) as soon as
                    practicable after the Administrator and the Secretary of
                    Defense promulgate standards with respect to the device
                    under paragraph (3), but not later than 1 year after the
                    Administrator and the Secretary of Defense promulgate
                    the standards. The regulations promulgated by the
                    Secretary of Defense under paragraph (4) shall become
                    effective upon promulgation unless another effective
                    date is specified in the regulations.
                        ``(D) Petition for review.--The Governor of any
                    State may submit a petition requesting that the
                    Secretary of Defense and the Administrator review a
                    determination under paragraph (2) or a standard under
                    paragraph (3), if there is significant new information,
                    not considered previously, that could reasonably result
                    in a change to the particular determination or standard
                    after consideration of the matters set forth in
                    paragraph (2)(B). The petition shall be accompanied by
                    the scientific and technical information on which the
                    petition is based. The Administrator and the Secretary
                    of Defense shall grant or deny the petition not later
                    than 2 years after the date of receipt of the petition.
                ``(6) Effect on other laws.--
                        ``(A) Prohibition on regulation by states or
                    political subdivisions of states.--Beginning on the
                    effective date of--
                              ``(i) a determination under paragraph (2) that
                          it is not reasonable and practicable to require
                          use of a marine pollution control device regarding
                          a particular

    [[Page 110 STAT. 257]]

                          discharge incidental to the normal operation of a
                          vessel of the Armed Forces; or
                              ``(ii) regulations promulgated by the
                          Secretary of Defense under paragraph (4);
                    except as provided in paragraph (7), neither a State nor
                    a political subdivision of a State may adopt or enforce
                    any statute or regulation of the State or political
                    subdivision with respect to the discharge or the design,
                    construction, installation, or use of any marine
                    pollution control device required to control discharges
                    from a vessel of the Armed Forces.
                        ``(B) Federal laws.--This subsection shall not
                    affect the application of section 311 to discharges
                    incidental to the normal operation of a vessel.
                ``(7) Establishment of state no-discharge zones.--
                        ``(A) State prohibition.--
                              ``(i) In general.--After the effective date
                          of--
                                        ``(I) a determination under
                                    paragraph (2) that it is not reasonable
                                    and practicable to require use of a
                                    marine pollution control device
                                    regarding a particular discharge
                                    incidental to the normal operation of a
                                    vessel of the Armed Forces; or
                                        ``(II) regulations promulgated by
                                    the Secretary of Defense under paragraph
                                    (4);
                          if a State determines that the protection and
                          enhancement of the quality of some or all of the
                          waters within the State require greater
                          environmental protection, the State may prohibit 1
                          or more discharges incidental to the normal
                          operation of a vessel, whether treated or not
                          treated, into the waters. No prohibition shall
                          apply until the Administrator makes the
                          determinations described in subclauses (II) and
                          (III) of subparagraph (B)(i).
                              ``(ii) Documentation.--To the extent that a
                          prohibition under this paragraph would apply to
                          vessels of the Armed Forces and not to other types
                          of vessels, the State shall document the technical
                          or environmental basis for the distinction.
                        ``(B) Prohibition by the administrator.--
                              ``(i) <<NOTE: Regulations.>> In general.--Upon
                          application of a State, the Administrator shall by
                          regulation prohibit the discharge from a vessel of
                          1 or more discharges incidental to the normal
                          operation of a vessel, whether treated or not
                          treated, into the waters covered by the
                          application if the Administrator determines that--
                                        ``(I) the protection and enhancement
                                    of the quality of the specified waters
                                    within the State require a prohibition
                                    of the discharge into the waters;
                                        ``(II) adequate facilities for the
                                    safe and sanitary removal of the
                                    discharge incidental to the normal
                                    operation of a vessel are reasonably
                                    available for the waters to which the
                                    prohibition would apply; and
                                        ``(III) the prohibition will not
                                    have the effect of discriminating
                                    against a vessel of the Armed Forces by
                                    reason of the ownership or operation

    [[Page 110 STAT. 258]]

                                    by the Federal Government, or the
                                    military function, of the vessel.
                              ``(ii) Approval or disapproval.--The
                          Administrator shall approve or disapprove an
                          application submitted under clause (i) not later
                          than 90 days after the date on which the
                          application is submitted to the Administrator.
                          Notwithstanding clause (i)(II), the Administrator
                          shall not disapprove an application for the sole
                          reason that there are not adequate facilities to
                          remove any discharge incidental to the normal
                          operation of a vessel from vessels of the Armed
                          Forces.
                        ``(C) Applicability to foreign flagged vessels.--A
                    prohibition under this paragraph--
                              ``(i) shall not impose any design,
                          construction, manning, or equipment standard on a
                          foreign flagged vessel engaged in innocent passage
                          unless the prohibition implements a generally
                          accepted international rule or standard; and
                              ``(ii) that relates to the prevention,
                          reduction, and control of pollution shall not
                          apply to a foreign flagged vessel engaged in
                          transit passage unless the prohibition implements
                          an applicable international regulation regarding
                          the discharge of oil, oily waste, or any other
                          noxious substance into the waters.
                ``(8) Prohibition relating to vessels of the armed forces.--
            After the effective date of the regulations promulgated by the
            Secretary of Defense under paragraph (4), it shall be unlawful
            for any vessel of the Armed Forces subject to the regulations
            to--
                        ``(A) operate in the navigable waters of the United
                    States or the waters of the contiguous zone, if the
                    vessel is not equipped with any required marine
                    pollution control device meeting standards established
                    under this subsection; or
                        ``(B) discharge overboard any discharge incidental
                    to the normal operation of a vessel in waters with
                    respect to which a prohibition on the discharge has been
                    established under paragraph (7).
                ``(9) Enforcement.--This subsection shall be enforceable, as
            provided in subsections (j) and (k), against any agency of the
            United States responsible for vessels of the Armed Forces
            notwithstanding any immunity asserted by the agency.''.

        (c) Conforming Amendments.--
                (1) Definitions.--Section 312(a) of the Federal Water
            Pollution Control Act (33 U.S.C. 1322(a)) is amended--
                        (A) in paragraph (8)--
                              (i) by striking ``or''; and
                              (ii) by inserting ``or agency of the United
                          States,'' after ``association,'';
                        (B) in paragraph (11), by striking the period at the
                    end and inserting a semicolon; and
                        (C) by adding at the end the following:
                ``(12) `discharge incidental to the normal operation of a
            vessel'--
                        ``(A) means a discharge, including--
                              ``(i) graywater, bilge water, cooling water,
                          weather deck runoff, ballast water, oil water
                          separator effluent,

    [[Page 110 STAT. 259]]

                          and any other pollutant discharge from the
                          operation of a marine propulsion system, shipboard
                          maneuvering system, crew habitability system, or
                          installed major equipment, such as an aircraft
                          carrier elevator or a catapult, or from a
                          protective, preservative, or absorptive
                          application to the hull of the vessel; and
                              ``(ii) a discharge in connection with the
                          testing, maintenance, and repair of a system
                          described in clause (i) whenever the vessel is
                          waterborne; and
                        ``(B) does not include--
                              ``(i) a discharge of rubbish, trash, garbage,
                          or other such material discharged overboard;
                              ``(ii) an air emission resulting from the
                          operation of a vessel propulsion system, motor
                          driven equipment, or incinerator; or
                              ``(iii) a discharge that is not covered by
                          part 122.3 of title 40, Code of Federal
                          Regulations (as in effect on the date of the
                          enactment of subsection (n));
                ``(13) `marine pollution control device' means any equipment
            or management practice, for installation or use on board a
            vessel of the Armed Forces, that is--
                        ``(A) designed to receive, retain, treat, control,
                    or discharge a discharge incidental to the normal
                    operation of a vessel; and
                        ``(B) determined by the Administrator and the
                    Secretary of Defense to be the most effective equipment
                    or management practice to reduce the environmental
                    impacts of the discharge consistent with the
                    considerations set forth in subsection (n)(2)(B); and
                ``(14) `vessel of the Armed Forces' means--
                        ``(A) any vessel owned or operated by the Department
                    of Defense, other than a time or voyage chartered
                    vessel; and
                        ``(B) any vessel owned or operated by the Department
                    of Transportation that is designated by the Secretary of
                    the department in which the Coast Guard is operating as
                    a vessel equivalent to a vessel described in
                    subparagraph (A).''.
                (2) Enforcement.--The first sentence of section 312(j) of
            the Federal Water Pollution Control Act (33 U.S.C. 1322(j)) is
            amended--
                        (A) by striking ``of this section or'' and inserting
                    a comma; and
                        (B) by striking ``of this section shall'' and
                    inserting ``, or subsection (n)(8) shall''.
                (3) Other definitions.--Subparagraph (A) of the second
            sentence of section 502(6) of the Federal Water Pollution
            Control Act (33 U.S.C. 1362(6)) is amended by striking ``
            `sewage from vessels' '' and inserting `` `sewage from vessels
            or a discharge incidental to the normal operation of a vessel of
            the Armed Forces' ''.

        (d) <<NOTE: 33 USC 1322 note.>> Cooperation in Standards
    Development.--The Administrator of the Environmental Protection Agency
    and the Secretary of Defense may, by mutual agreement, with or without
    reimbursement, provide for the use of information, reports, personnel,
    or other resources of the Environmental Protection Agency or the
    Department of Defense to carry out section 312(n) of the Federal

    [[Page 110 STAT. 260]]

    Water Pollution Control Act (as added by subsection (b)), including the
    use of the resources--
                (1) to determine--
                        (A) the nature and environmental effect of
                    discharges incidental to the normal operation of a
                    vessel of the Armed Forces;
                        (B) the practicability of using marine pollution
                    control devices on vessels of the Armed Forces; and
                        (C) the effect that installation or use of marine
                    pollution control devices on vessels of the Armed Forces
                    would have on the operation or operational capability of
                    the vessels; and
                (2) to establish performance standards for marine pollution
            control devices on vessels of the Armed Forces.

       Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    SEC. 331. OPERATION OF COMMISSARY SYSTEM.

        (a) Cooperation With Other Entities.--Section 2482 of title 10,
    United States Code, is amended--
                (1) in the section heading, by striking out ``private'';
                (2) by inserting ``(a) Private Operation.--'' before
            ``Private persons''; and
                (3) by adding at the end the following new subsection:

        ``(b) Contracts With Other Agencies and Instrumentalities.--(1) The
    Defense Commissary Agency, and any other agency of the Department of
    Defense that supports the operation of the commissary system, may enter
    into a contract or other agreement with another department, agency, or
    instrumentality of the Department of Defense or another Federal agency
    to provide services beneficial to the efficient management and operation
    of the commissary system.
        ``(2) A commissary store operated by a nonappropriated fund
    instrumentality of the Department of Defense shall be operated in
    accordance with section 2484 of this title. Subject to such section, the
    Secretary of Defense may authorize a transfer of goods, supplies, and
    facilities of, and funds appropriated for, the Defense Commissary Agency
    or any other agency of the Department of Defense that supports the
    operation of the commissary system to a nonappropriated fund
    instrumentality for the operation of a commissary store.''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 147 of such title is
    amended to read as follows:

    ``2482. Commissary stores: operation.''.

    SEC. 332. LIMITED RELEASE OF COMMISSARY STORES SALES INFORMATION TO
                MANUFACTURERS, DISTRIBUTORS, AND OTHER VENDORS DOING
                BUSINESS WITH DEFENSE COMMISSARY AGENCY.

        Section 2487(b) of title 10, United States Code, is amended in the
    second sentence by inserting before the period the following: ``unless
    the agreement is between the Defense Commissary Agency and a
    manufacturer, distributor, or other vendor doing business with the
    Agency and is restricted to information directly related

    [[Page 110 STAT. 261]]

    to  merchandise  provided  by  that  manufacturer,  distributor,  or
    vendor''.
    SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY
                            NONAPPROPRIATED FUND INSTRUMENTALITIES.

        (a) Economical Distribution.--Subsection (a)(1) of section 2488 of
    title 10, United States Code, is amended by inserting after ``most
    competitive source'' the following: ``and distributed in the most
    economical manner''.
        (b) Determination of Most Economical Distribution Method.--Such
    section is further amended--
                (1) by redesignating subsection (c) as subsection (d); and
                (2) by inserting after subsection (b) the following new
            subsection:

        ``(c)(1) In the case of covered alcoholic beverage purchases of
    distilled spirits, to determine whether a nonappropriated fund
    instrumentality of the Department of Defense provides the most
    economical method of distribution to package stores, the Secretary of
    Defense shall consider all components of the distribution costs incurred
    by the nonappropriated fund instrumentality, such as overhead costs
    (including costs associated with management, logistics, administration,
    depreciation, and utilities), the costs of carrying inventory, and
    handling and distribution costs.
        ``(2) If the use of a private distributor would subject covered
    alcoholic beverage purchases of distilled spirits to direct or indirect
    State taxation, a nonappropriated fund instrumentality shall be
    considered to be the most economical method of distribution regardless
    of the results of the determination under paragraph (1).
        ``(3) The Secretary shall use the agencies performing audit
    functions on behalf of the armed forces and the Inspector General of the
    Department of Defense to make determinations under this subsection.''.
    SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO OVERSEAS
                            LOCATIONS.

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

    ``Sec. 2643. Commissary and exchange services: transportation overseas

        ``The Secretary of Defense shall authorize the officials responsible
    for operation of commissaries and military exchanges to negotiate
    directly with private carriers for the most cost-effective
    transportation of commissary and exchange supplies by sea without
    relying on the Military Sealift Command or the Military Traffic
    Management Command. Section 2631 of this title, regarding the preference
    for vessels of the United States or belonging to the United States in
    the transportation of supplies by sea, shall apply to the negotiation of
    transportation contracts under the authority of this section.''.

    [[Page 110 STAT. 262]]

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2643. Commissary and exchange services: transportation overseas.''.

    SEC. 335. <<NOTE: 10 USC 2241 note.>>  DEMONSTRATION PROJECT FOR
                            UNIFORM FUNDING OF MORALE, WELFARE, AND
                            RECREATION ACTIVITIES AT CERTAIN MILITARY
                            INSTALLATIONS.

        (a) Demonstration Project Required.--(1) The Secretary of Defense
    shall conduct a demonstration project to evaluate the feasibility of
    using only nonappropriated funds to support morale, welfare, and
    recreation programs at military installations in order to facilitate the
    procurement of property and services for those programs and the
    management of employees used to carry out those programs.
        (2) Under the demonstration project--
                (A) procurements of property and services for programs
            referred to in paragraph (1) may be carried out in accordance
            with laws and regulations applicable to procurements paid for
            with nonappropriated funds; and
                (B) appropriated funds available for such programs may be
            expended in accordance with laws applicable to expenditures of
            nonappropriated funds as if the appropriated funds were
            nonappropriated funds.

        (3) <<NOTE: Regulations.>> The Secretary shall prescribe regulations
    to carry out paragraph (2). The regulations shall provide for financial
    management and accounting of appropriated funds expended in accordance
    with subparagraph (B) of such paragraph.

        (b) Covered Military Installations.--The Secretary shall select not
    less than three and not more than six military installations to
    participate in the demonstration project.
        (c) <<NOTE: Termination date.>> Period of Demonstration Project.--
    The demonstration project shall terminate not later than September 30,
    1998.

        (d) Effect on Employees.--For the purpose of testing fiscal
    accounting procedures, the Secretary may convert, for the duration of
    the demonstration project, the status of an employee who carries out a
    program referred to in subsection (a)(1) from the status of an employee
    paid by appropriated funds to the status of a nonappropriated fund
    instrumentality employee, except that such conversion may occur only--
                (1) if the employee whose status is to be converted--
                        (A) is fully informed of the effects of such
                    conversion on the terms and conditions of the employment
                    of that employee for purposes of title 5, United States
                    Code, and on the benefits provided to that employee
                    under such title; and
                        (B) consents to such conversion; or
                (2) in a manner which does not affect such terms and
            conditions of employment or such benefits.

        (e) Reports.--(1) Not later than six months after the date of the
    enactment of this Act, the Secretary shall submit to Congress an interim
    report on the implementation of this section.
        (2) Not later than December 31, 1998, the Secretary shall submit to
    Congress a final report on the results of the demonstration project. The
    report shall include a comparison of--
                (A) the cost incurred under the demonstration project in
            using employees paid by appropriated funds together with

    [[Page 110 STAT. 263]]

            nonappropriated fund instrumentality employees to carry out the
            programs referred to in subsection (a)(1); and
                (B) an estimate of the cost that would have been incurred if
            only nonappropriated fund instrumentality employees had been
            used to carry out such programs.
    SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY STORES.

        (a) In General.--(1) Chapter 147 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 2490a. Combined exchange and commissary stores

        ``(a) Authority.--The Secretary of Defense may authorize a
    nonappropriated fund instrumentality to operate a military exchange and
    a commissary store as a combined exchange and commissary store on a
    military installation.
        ``(b) Limitations.--(1) Not more than ten combined exchange and
    commissary stores may be operated pursuant to this section.
        ``(2) The Secretary may select a military installation for the
    operation of a combined exchange and commissary store under this section
    only if--
                ``(A) the installation is to be closed, or has been or is to
            be realigned, under a base closure law; or
                ``(B) a military exchange and a commissary store are
            operated at the installation by separate entities at the time
            of, or immediately before, such selection and it is not
            economically feasible to continue that separate operation.

        ``(c) <<NOTE: Texas.>> Operation at Carswell Field.--Combined
    exchange and commissary stores operated under this section shall include
    the combined exchange and commissary store that is operated at the Naval
    Air Station Fort Worth, Joint Reserve Center, Carswell Field, Texas,
    under the authority provided in section 375 of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2736).

        ``(d) Adjustments and Surcharges.--Adjustments to, and surcharges
    on, the sales price of a grocery food item sold in a combined exchange
    and commissary store under this section shall be provided for in
    accordance with the same laws that govern such adjustments and
    surcharges for items sold in a commissary store of the Defense
    Commissary Agency.
        ``(e) Use of Appropriated Funds.--(1) If a nonappropriated fund
    instrumentality incurs a loss in operating a combined exchange and
    commissary store at a military installation under this section as a
    result of the requirement set forth in subsection (d), the Secretary may
    authorize a transfer of funds available for the Defense Commissary
    Agency to the nonappropriated fund instrumentality to offset the loss.
        ``(2) The total amount of appropriated funds transferred during a
    fiscal year to support the operation of a combined exchange and
    commissary store at a military installation under this section may not
    exceed an amount that is equal to 25 percent of the amount of
    appropriated funds that was provided for the operation of the commissary
    store of the Defense Commissary Agency on that installation during the
    last full fiscal year of operation of that commissary store.
        ``(f) Definitions.--In this section:

    [[Page 110 STAT. 264]]

                ``(1) The term `nonappropriated fund instrumentality' means
            the Army and Air Force Exchange Service, Navy Exchange Service
            Command, Marine Corps exchanges, or any other instrumentality of
            the United States under the jurisdiction of the Armed Forces
            which is conducted for the comfort, pleasure, contentment, or
            physical or mental improvement of members of the Armed Forces.
                ``(2) The term `base closure law' has the meaning given such
            term by section 2667(g) of this title.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2490a. Combined exchange and commissary stores.''.

        (b) Conforming Amendment.--Section 375 of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2736) is amended by striking out ``, until December 31, 1995,''.

    SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

        (a) <<NOTE: Contracts.>> Use of Commercial Banking Institution.--(1)
    As soon as practicable after the date of the enactment of this Act, the
    Secretary of Defense shall seek to enter into an agreement with a
    commercial banking institution under which the institution agrees to
    finance and operate the deferred payment program of the Army and Air
    Force Exchange Service and the deferred payment program of the Navy
    Exchange Service Command. The Secretary shall use competitive procedures
    to enter into an agreement under this paragraph.

        (2) In order to facilitate the transition of the operation of the
    programs referred to in paragraph (1) to commercial operation under an
    agreement described in that paragraph, the Secretary may initially limit
    the scope of any such agreement so as to apply to only one of the
    programs.

        (b) Report.--Not later than December 31, 1995, the Secretary shall
    submit to Congress a report on the implementation of this section. The
    report shall also include an analysis of the impact of the deferred
    payment programs referred to in subsection (a)(1), including the impact
    of the default and collection procedures under such programs, on members
    of the Armed Forces and their families.
    SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED BY
                            ARMY AND AIR FORCE EXCHANGE SERVICE ON
                            ACCOUNT OF TROOP REDUCTIONS IN EUROPE.

        Of funds authorized to be appropriated under section 301(5), not
    less than $70,000,000 shall be available to the Secretary of Defense for
    transfer to the Army and Air Force Exchange Service to offset expenses
    incurred by the Army and Air Force Exchange Service on account of
    reductions in the number of members of the United States Armed Forces
    assigned to permanent duty ashore in Europe.
    SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION OF
                            MILITARY EXCHANGES AND OTHER MORALE,
                            WELFARE, AND RECREATION ACTIVITIES AND
                            COMMISSARY STORES.

        (a) Study Required.--The Secretary of Defense shall conduct a study
    regarding the manner in which greater efficiencies can be achieved in
    the operation of--
                (1) military exchanges;

    [[Page 110 STAT. 265]]

                (2) other instrumentalities of the United States under the
            jurisdiction of the Armed Forces which are conducted for the
            comfort, pleasure, contentment, or physical or mental
            improvement of members of the Armed Forces; and
                (3) commissary stores.

        (b) Report of Study.--Not later than March 1, 1996, the Secretary of
    Defense shall submit to Congress a report describing the results of the
    study and containing such recommendations as the Secretary considers
    appropriate to implement options identified in the study to achieve the
    greater efficiencies referred to in subsection (a).
    SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS' STORES TO
                            NONAPPROPRIATED FUND INSTRUMENTALITIES.

        (a) Repeal.--Section 371 of the National Defense Authorization Act
    for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 7604 note) is
    amended--
                (1) by striking out subsections (a) and (b); and
                (2) by redesignating subsections (c) and (d) as subsections
            (a) and (b), respectively.

        (b) <<NOTE: Reports.>> Inspector General Review.--Not later than
    April 1, 1996, the Inspector General of the Department of Defense shall
    submit to Congress a report that reviews the report on the costs and
    benefits of converting to operation of Navy ships' stores by
    nonappropriated fund instrumentalities that the Navy Audit Agency
    prepared in connection with the postponement of the deadline for the
    conversion provided for in section 374(a) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2736).
    SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECREATION
                            FUNDS.

        Section 2219 of title 10, United States Code, is amended--
                (1) in the first sentence, by striking out ``a military
            department'' and inserting in lieu thereof ``an armed force'';
                (2) in the second sentence--
                        (A) by striking out ``, department-wide''; and
                        (B) by striking out ``of the military department''
                    and inserting in lieu thereof ``for that armed force'';
                    and
                (3) by adding at the end the following: ``This section does
            not apply to the Coast Guard.''.
    SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WELFARE,
                            AND RECREATION FACILITIES BY MEMBERS OF
                            RESERVE COMPONENTS AND DEPENDENTS.

        (a) In General.--Section 1065 of title 10, United States Code, is
    amended to read as follows:

    ``Sec. 1065. Morale, welfare, and recreation retail facilities: use by
                            members of reserve components and dependents

        ``(a) Members of the Selected Reserve.--A member of the Selected
    Reserve in good standing (as determined by the Secretary concerned)
    shall be permitted to use MWR retail facilities on the same basis as
    members on active duty.
        ``(b) Members of Ready Reserve Not in Selected Reserve.--Subject to
    such regulations as the Secretary of Defense may prescribe, a member of
    the Ready Reserve (other than members of

    [[Page 110 STAT. 266]]

    the Selected Reserve) may be permitted to use MWR retail facilities on
    the same basis as members serving on active duty.
        ``(c) Reserve Retirees Under Age 60.--A member or former member of a
    reserve component under 60 years of age who, but for age, would be
    eligible for retired pay under chapter 1223 of this title shall be
    permitted to use MWR retail facilities on the same basis as members of
    the armed forces entitled to retired pay under any other provision of
    law.
        ``(d) Dependents.--(1) Dependents of a member who is permitted under
    subsection (a) or (b) to use MWR retail facilities shall be permitted to
    use such facilities on the same basis as dependents of members on active
    duty.
        ``(2) Dependents of a member who is permitted under subsection (c)
    to use MWR retail facilities shall be permitted to use such facilities
    on the same basis as dependents of members of the armed forces entitled
    to retired pay under any other provision of law.
        ``(e) MWR Retail Facility Defined.--In this section, the term `MWR
    retail facilities' means 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) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 54 of such title is
    amended to read as follows:

    ``1065. Morale, welfare, and recreation retail facilities: use by
               members of reserve components and dependents.''.

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

    SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION
                            SERVICES.

        (a) Requirement for Competitive Procurement.--Except as provided in
    subsection (b), the Secretary of Defense shall, during fiscal year 1996
    and consistent with the requirements of title 44, United States Code,
    competitively procure printing and duplication services from private-
    sector sources for the performance of at least 70 percent of the total
    printing and duplication requirements of the Defense Printing Service.
        (b) Exception for Classified Information.--The requirement of
    subsection (a) shall not apply to the procurement of services for
    printing and duplicating classified documents and information.
    SEC. 352. <<NOTE: 10 USC 2458 note.>>  DIRECT VENDOR DELIVERY
                            SYSTEM FOR CONSUMABLE INVENTORY ITEMS OF
                            DEPARTMENT OF DEFENSE.

        (a) Implementation of Direct Vendor Delivery System.--Not later than
    September 30, 1997, the Secretary of Defense shall, to the maximum
    extent practicable, implement a system under which consumable inventory
    items referred to in subsection (b) are delivered to military
    installations throughout the United States directly by the vendors of
    those items. The purpose for implementing the system is to reduce the
    expense and necessity of maintaining extensive warehouses for those
    items within the Department of Defense.
        (b) Covered Items.--The items referred to in subsection (a) are the
    following:

    [[Page 110 STAT. 267]]

                (1) Food and clothing.
                (2) Medical and pharmaceutical supplies.
                (3) Automotive, electrical, fuel, and construction supplies.
                (4) Other consumable inventory items the Secretary considers
            appropriate.
    SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE
                            DEPARTMENT OF DEFENSE.

        (a) <<NOTE: 10 USC 2461 note.>> Plan for Private Operation of
    Certain Functions.--(1) Not later than October 1, 1996, the Secretary of
    Defense shall submit to Congress a plan for the performance by private-
    sector sources of payroll functions for civilian employees of the
    Department of Defense other than employees paid from nonappropriated
    funds.

        (2)(A) The Secretary shall implement the plan referred to in
    paragraph (1) if the Secretary determines that the cost of performance
    by private-sector sources of the functions referred to in that paragraph
    does not exceed the cost of performance of those functions by employees
    of the Federal Government.
        (B) In computing the total cost of performance of such functions by
    employees of the Federal Government, the Secretary shall include the
    following:
                (i) Managerial and administrative costs.
                (ii) Personnel costs, including the cost of providing
            retirement benefits for such personnel.
                (iii) Costs associated with the provision of facilities and
            other support by Federal agencies.

        (C) The Defense Contract Audit Agency shall verify the costs
    computed for the Secretary under this paragraph by others.
        (3) <<NOTE: Reports.>> At the same time the Secretary submits the
    plan required by paragraph (1), the Secretary shall submit to Congress a
    report on other accounting and finance functions of the Department that
    are appropriate for performance by private-sector sources.

        (b) <<NOTE: 10 USC 2461 note.>> Pilot Program for Private Operation
    of NAFI Functions.--(1) The Secretary shall carry out a pilot program to
    test the performance by private-sector sources of payroll and other
    accounting and finance functions of nonappropriated fund
    instrumentalities and to evaluate the extent to which cost savings and
    efficiencies would result from the performance of such functions by
    those sources.

        (2) The payroll and other accounting and finance functions
    designated by the Secretary for performance by private-sector sources
    under the pilot program shall include at least one major payroll,
    accounting, or finance function.

        (3) To carry out the pilot program, the Secretary shall enter into
    discussions with private-sector sources for the purpose of developing a
    request for proposals to be issued for performance by those sources of
    functions designated by the Secretary under paragraph (2). The
    discussions shall be conducted on a schedule that accommodates issuance
    of a request for proposals within 60 days after the date of the
    enactment of this Act.
        (4) A goal of the pilot program is to reduce by at least 25 percent
    the total costs incurred by the Department annually for the performance
    of a function referred to in paragraph (2) through the performance of
    that function by a private-sector source.

        (5) Before conducting the pilot program, the Secretary shall develop
    a plan for the program that addresses the following:
                (A) The purposes of the program.

    [[Page 110 STAT. 268]]

                (B) The methodology, duration, and anticipated costs of the
            program, including the cost of an arrangement pursuant to which
            a private-sector source would receive an agreed-upon payment
            plus an additional negotiated amount not to exceed 50 percent of
            the dollar savings achieved in excess of the goal specified in
            paragraph (4).
                (C) A specific citation to any provisions of law, rule, or
            regulation that, if not waived, would prohibit the conduct of
            the program or any part of the program.
                (D) A mechanism to evaluate the program.
                (E) A provision for all payroll, accounting, and finance
            functions of nonappropriated fund instrumentalities of the
            Department of Defense to be performed by private-sector
    sources, if determined advisable on the basis of a final assessment of
    the results of the program.

        (6) The Secretary shall act through the Under Secretary of Defense
    (Comptroller) in the performance of the Secretary's responsibilities
    under this subsection.
        (c) Limitation on Opening of New Operating Locations for Defense
    Finance and Accounting Service.--(1) Except as provided in paragraph
    (2), the Secretary may not establish a new operating location for the
    Defense Finance and Accounting Service during fiscal year 1996.
        (2) The Secretary may establish a new operating location for the
    Defense Finance and Accounting Service if--
                (A) for a new operating location that the Secretary planned
            before the date of the enactment of this Act to establish on or
            after that date, the Secretary reconsiders the need for
            establishing that new operating location; and
                (B) for each new operating location, including a new
            operating location referred to in subparagraph (A)--
                        (i) the Secretary submits to Congress, as part of
                    the report required by subsection (a)(4), an analysis of
                    the need for establishing the new operating location;
                    and
                        (ii) a period of 30 days elapses after the Congress
                    receives the report.

        (3) In this subsection, the term ``new operating location'' means an
    operating location that is not in operation on the date of the enactment
    of this Act, except that such term does not include an operating
    location for which, as of such date--
                (A) the Secretary has established a date for the
            commencement of operations; and
                (B) funds have been expended for the purpose of its
            establishment.
    SEC. 354. <<NOTE: 10 USC 2461 note.>>  DEMONSTRATION PROGRAM TO
                            IDENTIFY OVERPAYMENTS MADE TO VENDORS.

        (a) In General.--The Secretary of Defense shall conduct a
    demonstration program to evaluate the feasibility of using private
    contractors to audit accounting and procurement records of the
    Department of Defense in order to identify overpayments made to vendors
    by the Department. The demonstration program shall be conducted for the
    Defense Logistics Agency and include the Defense Personnel Support
    Center.
        (b) <<NOTE: Contracts.>> Program Requirements.--(1) Under the
    demonstration program, the Secretary shall, by contract, provide for one
    or more persons to audit the accounting and procurement records of the

    [[Page 110 STAT. 269]]

    Defense Logistics Agency that relate to (at least) fiscal years 1993,
    1994, and 1995. The Secretary may enter into more than one contract
    under the program.

        (2) A contract under the demonstration program shall require the
    contractor to use data processing techniques that are generally used in
    audits of private-sector records similar to the records audited under
    the contract.

        (c) Audit Requirements.--In conducting an audit under the
    demonstration program, a contractor shall compare Department of Defense
    purchase agreements (and related documents) with invoices submitted by
    vendors under the purchase agreements. A purpose of the comparison is to
    identify, in the case of each audited purchase agreement, the following:
                (1) Any payments to the vendor for costs that are not
            allowable under the terms of the purchase agreement or by law.
                (2) Any amounts not deducted from the total amount paid to
            the vendor under the purchase agreement that should have been
            deducted from that amount on account of goods and services
            provided to the vendor by the Department.
                (3) Duplicate payments.
                (4) Unauthorized charges.
                (5) Other discrepancies between the amount paid to the
            vendor and the amount actually due the vendor under the purchase
            agreement.

        (d) Bonus Payment.--To the extent provided for in a contract under
    the demonstration program, the Secretary may pay the contractor a bonus
    in addition to any other amount paid for performance of the contract.
    The amount of such bonus may not exceed the amount that is equal to 25
    percent of all amounts recovered by the United States on the basis of
    information obtained as a result of the audit performed under the
    contract. Any such bonus shall be paid out of amounts made available
    pursuant to subsection (e).
        (e) Availability of Funds.--Of the amount authorized to be
    appropriated pursuant to section 301(5), not more than $5,000,000 shall
    be available for the demonstration program.
    SEC. 355. <<NOTE: 20 USC 921 note.>>  PILOT PROGRAM ON PRIVATE
                            OPERATION OF DEFENSE DEPENDENTS' SCHOOLS.

        (a) Pilot Program.--The Secretary of Defense may conduct a pilot
    program to evaluate the feasibility of using private contractors to
    operate schools of the defense dependents' education system established
    under section 1402(a) of the Defense Dependents' Education Act of 1978
    (20 U.S.C. 921(a)).
        (b) Selection of School for Program.--If the Secretary conducts the
    pilot program, the Secretary shall select one school of the defense
    dependents' education system for participation in the program and
    provide for the operation of the school by a private contractor for not
    less than one complete school year.
        (c) Report.--Not later than 30 days after the end of the first
    school year in which the pilot program is conducted, the Secretary shall
    submit to Congress a report on the results of the program. The report
    shall include the recommendation of the Secretary with respect to the
    extent to which other schools of the defense dependents' education
    system should be operated by private contractors.

    [[Page 110 STAT. 270]]

    SEC. 356. <<NOTE: 10 USC 2461 note.>>  PROGRAM FOR IMPROVED TRAVEL
                            PROCESS FOR THE DEPARTMENT OF DEFENSE.

        (a) In General.--(1) The Secretary of Defense shall conduct a
    program to evaluate options to improve the Department of Defense travel
    process. To carry out the program, the Secretary shall compare the
    results of the tests conducted under subsection (b) to determine which
    travel process tested under such subsection is the better option to
    effectively manage travel of Department personnel.

        (2) The program shall be conducted at not less than three and not
    more than six military installations, except that an installation may be
    the subject of only one test conducted under the program.
        (3) The Secretary shall act through the Under Secretary of Defense
    (Comptroller) in the performance of the Secretary's responsibilities
    under this section.
        (b) Conduct of Tests.--(1) The Secretary shall conduct a test at an
    installation referred to in subsection (a)(2) under which the
    Secretary--
                (A) implements the changes proposed to be made with respect
            to the Department of Defense travel process by the task force on
            travel management that was established by the Secretary in July
            1994;
                (B) manages and uniformly applies that travel process
            (including the implemented changes) throughout the Department;
            and
                (C) provides opportunities for private-sector sources to
            provide travel reservation services and credit card services to
            facilitate that travel process.

        (2) The Secretary shall conduct a test at an installation referred
    to in subsection (a)(2) under which the Secretary--
                (A) enters into one or more contracts with a private-sector
            source pursuant to which the private-sector source manages the
            Department of Defense travel process (except for functions
            referred to in subparagraph (B)), provides for responsive,
            reasonably priced services as part of the travel process, and
            uniformly applies the travel process throughout the Department;
            and
                (B) provides for the performance by employees of the
            Department of only those travel functions, such as travel
            authorization, that the Secretary considers to be necessary to
            be performed by such employees.

        (3) Each test required by this subsection shall begin not later than
    60 days after the date of the enactment of this Act and end two years
    after the date on which it began. Each such test shall also be conducted
    in accordance with the guidelines for travel management issued for the
    Department by the Under Secretary of Defense (Comptroller).
        (c) Evaluation Criteria.--The Secretary shall establish criteria to
    evaluate the travel processes tested under subsection (b). The criteria
    shall, at a minimum, include the extent to which a travel process
    provides for the following:
                (1) The coordination, at the time of a travel reservation,
            of travel policy and cost estimates with the mission which
            necessitates the travel.

    [[Page 110 STAT. 271]]

                (2) The use of fully integrated travel solutions envisioned
            by the travel reengineering report of the Department of Defense
            dated January 1995.
                (3) The coordination of credit card data and travel
            reservation data with cost estimate data.
                (4) The elimination of the need for multiple travel
            approvals through the coordination of such data with proposed
            travel plans.
                (5) A responsive and flexible management information system
            that enables the Under Secretary of Defense (Comptroller) to
            monitor travel expenses throughout the year, accurately plan
            travel budgets for future years, and assess, in the case of
            travel of an employee on temporary duty, the relationship
            between the cost of the travel and the value of the travel to
            the accomplishment of the mission which necessitates the travel.

        (d) Plan for Program.--Before conducting the program, the Secretary
    shall develop a plan for the program that addresses the following:
                (1) The purposes of the program, including the achievement
            of an objective of reducing by at least 50 percent the total
            cost incurred by the Department annually to manage the
            Department of Defense travel process.
                (2) The methodology and anticipated cost of the program,
            including the cost of an arrangement pursuant to which a
            private-sector source would receive an agreed-upon payment plus
            an additional negotiated amount that does not exceed 50 percent
            of the total amount saved in excess of the objective specified
            in paragraph (1).
                (3) A specific citation to any provision or law, rule, or
            regulation that, if not waived, would prohibit the conduct of
            the program or any part of the program.
                (4) The evaluation criteria established pursuant to
            subsection (c).
                (5) A provision for implementing throughout the Department
            the travel process determined to be the better option to
            effectively manage travel of Department personnel on the basis
            of a final assessment of the results of the program.

        (e) Report.--After the first full year of the conduct of the tests
    required by subsection (b), the Secretary shall submit to the Committee
    on Armed Services of the Senate and the Committee on National Security
    of the House of Representatives a report on the implementation of the
    program. The report shall include an analysis of the evaluation criteria
    established pursuant to subsection (c).
    SEC. 357. <<NOTE: 10 USC 2461 note.>>  INCREASED RELIANCE ON
                            PRIVATE-SECTOR SOURCES FOR COMMERCIAL
                            PRODUCTS AND SERVICES.

        (a) In General.--The Secretary of Defense shall endeavor to carry
    out through a private-sector source any activity to provide a commercial
    product or service for the Department of Defense if--
                (1) the product or service can be provided adequately
            through such a source; and
                (2) an adequate competitive environment exists to provide
            for economical performance of the activity by such a source.

    [[Page 110 STAT. 272]]

        (b) Applicability.--(1) Subsection (a) shall not apply to any
    commercial product or service with respect to which the Secretary
    determines that production, manufacture, or provision of that product or
    service by the Government is necessary for reasons of national security.

        (2) A determination under paragraph (1) shall be made in accordance
    with regulations prescribed under subsection (c).
        (c) Regulations.--The Secretary shall prescribe regulations to carry
    out this section. Such regulations shall be prescribed in consultation
    with the Director of the Office of Management and Budget.
        (d) Report.--(1) The Secretary shall identify activities of the
    Department (other than activities specified by the Secretary pursuant to
    subsection (b)) that are carried out by employees of the Department to
    provide commercial-type products or services for the Department.
        (2) Not later than April 15, 1996, the Secretary shall transmit to
    the congressional defense committees a report on opportunities for
    increased use of private-sector sources to provide commercial products
    and services for the Department.
        (3) The report required by paragraph (2) shall include the
    following:
                (A) A list of activities identified under paragraph (1)
            indicating, for each activity, whether the Secretary proposes to
            convert the performance of that activity to performance by
            private-sector sources and, if not, the reasons why.
                (B) An assessment of the advantages and disadvantages of
            using private-sector sources, rather than employees of the
            Department, to provide commercial products and services for the
            Department that are not essential to the warfighting mission of
            the Armed Forces.
                (C) A specification of all legislative and regulatory
            impediments to converting the performance of activities
            identified under paragraph (1) to performance by private-sector
            sources.
                (D) The views of the Secretary on the desirability of
            terminating the applicability of OMB Circular A-76 to the
            Department.

        (4) The Secretary shall carry out paragraph (1) in consultation with
    the Director of the Office of Management and Budget and the Comptroller
    General of the United States. In carrying out that paragraph, the
    Secretary shall consult with, and seek the views of, representatives of
    the private sector, including organizations representing small
    businesses.

             Subtitle F--Miscellaneous Reviews, Studies, and Reports

    SEC. 361. QUARTERLY READINESS REPORTS.

        (a) In General.--(1) Chapter 22 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 452. Quarterly readiness reports

        ``(a) Requirement.--Not later than 30 days after the end of each
    calendar-year quarter, 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

    [[Page 110 STAT. 273]]

    on military readiness. The report for any quarter shall be based on
    assessments that are provided during that quarter--
                ``(1) to any council, committee, or other body of the
            Department of Defense (A) that has responsibility for readiness
            oversight, and (B) the membership of which includes at least one
            civilian officer in the Office of the Secretary of Defense at
            the level of Assistant Secretary of Defense or higher;
                ``(2) by senior civilian and military officers of the
            military departments and the commanders of the unified and
            specified commands; and
                ``(3) as part of any regularly established process of
            periodic readiness reviews for the Department of Defense as a
            whole.

        ``(b) Matters To Be Included.--Each such report shall--
                ``(1) specifically describe identified readiness problems or
            deficiencies and planned remedial actions; and
                ``(2) include the key indicators and other relevant data
            related to the identified problem or deficiency.

        ``(c) Classification of Reports.--Reports under this section shall
    be submitted in unclassified form and may, as the Secretary determines
    necessary, also be submitted in classified form.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``452. Quarterly readiness reports.''.

      (b) <<NOTE: 10 USC 452 note.>> Effective Date.--Section 452 of title
    10, United States Code, as added by subsection (a), shall take effect
    with the calendar-year quarter during which this Act is enacted.
    SEC. 362. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS TO
                            CONGRESS ON TRANSFERS FROM HIGH-PRIORITY
                            READINESS APPROPRIATIONS.

        Section 361 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2732) is amended to read as
    follows:
    ``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM HIGH-
                              PRIORITY READINESS APPROPRIATIONS.

        ``(a) Annual Reports.--During 1996 and 1997, the Secretary of
    Defense shall submit to the congressional defense committees a report on
    transfers during the preceding fiscal year from funds available for each
    budget activity specified in subsection (d) (hereinafter in this section
    referred to as `covered budget activities'). The report each year shall
    be submitted not later than the date in that year on which the President
    submits the budget for the next fiscal year to Congress pursuant to
    section 1105 of title 31, United States Code.
        ``(b) Midyear Reports.--On May 1 of each year specified in
    subsection (a), the Secretary of Defense shall submit to the
    congressional defense committees a report providing the same
    information, with respect to the first six months of the fiscal year in
    which the report is submitted, that is provided in reports under
    subsection (a) with respect to the preceding fiscal year.

        ``(c) Matters To Be Included.--In each report under this section,
    the Secretary shall include for each covered budget activity the
    following:
                ``(1) A statement, for the period covered by the report,
            of--

    [[Page 110 STAT. 274]]

                        ``(A) the total amount of transfers into funds
                    available for that activity;
                        ``(B) the total amount of transfers from funds
                    available for that activity; and
                        ``(C) the net amount of transfers into, or out of,
                    funds available for that activity.
                ``(2) A detailed explanation of the transfers into, and out
            of, funds available for that activity during the period covered
            by the report.

        ``(d) Covered Budget Activities.--The budget activities to which
    this section applies are the following:
                ``(1) The budget activity groups (known as `subactivities')
            within the Operating Forces budget activity of the annual
            Operation and Maintenance, Army, appropriation that are
            designated as follows:
                        ``(A) Combat Units.
                        ``(B) Tactical Support.
                        ``(C) Force-Related Training/Special Activities.
                        ``(D) Depot Maintenance.
                        ``(E) JCS Exercises.
                ``(2) The budget activity groups (known as `subactivities')
            within the Operating Forces budget activity of the annual
            Operation and Maintenance, Navy, appropriation that are
            designated as follows:
                        ``(A) Mission and Other Flight Operations.
                        ``(B) Mission and Other Ship Operations.
                        ``(C) Fleet Air Training.
                        ``(D) Ship Operational Support and Training.
                        ``(E) Aircraft Depot Maintenance.
                        ``(F) Ship Depot Maintenance.
                ``(3) The budget activity groups (known as `subactivities'),
            or other activity, within the Operating Forces budget activity
            of the annual Operation and Maintenance, Air Force,
            appropriation that are designated or otherwise identified as
            follows:
                        ``(A) Primary Combat Forces.
                        ``(B) Primary Combat Weapons.
                        ``(C) Global and Early Warning.
                        ``(D) Air Operations Training.
                        ``(E) Depot Maintenance.
                        ``(F) JCS Exercises.''.
    SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH
                            CONTRACT MANAGEMENT OVERSIGHT.

        (a) Report Required.--Not later than April 1, 1996, the Comptroller
    General of the United States shall submit to Congress a report
    identifying methods to reduce the cost to the Department of Defense of
    management oversight of contracts in connection with major defense
    acquisition programs.
        (b) Major Defense Acquisition Programs Defined.--For purposes of
    this section, the term ``major defense acquisition program'' has the
    meaning given that term in section 2430(a) of title 10, United States
    Code.
    SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL POINTS AND
                            MATERIEL MANAGEMENT STANDARD SYSTEM.

        (a) Review of Consolidation of Inventory Control Points.--(1) The
    Secretary of Defense shall conduct a review of the management by the
    Defense Logistics Agency of all inventory

    [[Page 110 STAT. 275]]

    control points of the Department of Defense. In conducting the review,
    the Secretary shall examine the management and acquisition practices of
    the Defense Logistics Agency for inventory of repairable spare parts.
        (2) Not later than March 31, 1996, the Secretary shall submit to the
    Comptroller General of the United States and the congressional defense
    committees a report on the results the review conducted under paragraph
    (1).
        (b) Review of Materiel Management Standard System.--(1) The
    Comptroller General of the United States shall conduct a review of the
    automated data processing system of the Department of Defense known as
    the Materiel Management Standard System.
        (2) Not later than May 1, 1996, the Comptroller General shall submit
    to the congressional defense committees a report on the results of the
    review conducted under paragraph (1).
    SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS
                            PERFORMED BY MILITARY AIRCRAFT.

        (a) Report Required.--Not later than May 1, 1996, the Secretary of
    Defense shall submit to Congress a report on the feasibility of
    providing for the performance by private-sector sources of functions
    necessary to be performed to fulfill the requirements of the Department
    of Defense for air transportation of personnel and cargo.
        (b) Content of Report.--The report shall include the following:
                (1) A cost-benefit analysis with respect to the performance
            by private-sector sources of functions described in subsection
            (a), including an explanation of the assumptions used in the
            cost-benefit analysis.
                (2) An assessment of the issues raised by providing for such
            performance by means of a contract entered into with a private-
            sector source.
                (3) An assessment of the issues raised by providing for such
            performance by means of converting functions described in
            subsection (a) to private ownership and operation, in whole or
            in part.
                (4) A discussion of the requirements for the performance of
            such functions in order to fulfill the requirements referred to
            in subsection (a) during wartime.
                (5) The effect on military personnel and facilities of using
            private-sector sources to fulfill the requirements referred to
            in such subsection.
                (6) The performance by private-sector sources of any other
            military aircraft functions (such as non-combat inflight fueling
            of aircraft) the Secretary considers appropriate.
    SEC. 366. <<NOTE: 10 USC 113 note.>>  STRATEGY AND REPORT ON
                            AUTOMATED INFORMATION SYSTEMS OF
                            DEPARTMENT OF DEFENSE.

        (a) Development of Strategy.--The Secretary of Defense shall develop
    a strategy for the development or modernization of automated information
    systems for the Department of Defense.
        (b) Matters to Consider.--In developing the strategy required under
    subsection (a), the Secretary shall consider the following:
                (1) The use of performance measures and management controls.
                (2) Findings of the Functional Management Review conducted
            by the Secretary.

    [[Page 110 STAT. 276]]

                (3) Program management actions planned by the Secretary.
                (4) Actions and milestones necessary for completion of
            functional and economic analyses for--
                        (A) the Automated System for Transportation data;
                        (B) continuous acquisition and life cycle support;
                        (C) electronic data interchange;
                        (D) flexible computer integrated manufacturing;
                        (E) the Navy Tactical Command Support System; and
                        (F) the Defense Information System Network.
                (5) Progress made by the Secretary in resolving problems
            with respect to the Defense Information System Network and the
            Joint Computer-Aided Acquisition and Logistics Support System.
                (6) Tasks identified in the review conducted by the
            Secretary of the Standard Installation/Division Personnel
            System-3.
                (7) Such other matters as the Secretary considers
            appropriate.

        (c) Report on Strategy.--(1) Not later than April 15, 1996, the
    Secretary shall submit to Congress a report on the development of the
    strategy required under subsection (a).
        (2) In the case of the Air Force Wargaming Center, the Air Force
    Command Exercise System, the Cheyenne Mountain Upgrade, the
    Transportation Coordinator Automated Command and Control Information
    Systems, and the Wing Command and Control Systems, the report required
    by paragraph (1) shall provide functional economic analyses and address
    waivers exercised for compelling military importance under section
    381(d) of the National Defense Authorization Act for Fiscal Year 1995
    (Public Law 103-337; 108 Stat. 2739).
        (3) The report required by paragraph (1) shall also include the
    following:
                (A) <<NOTE: Certification.>> A certification by the
            Secretary of the termination of the Personnel Electronic Record
            Management System or a justification for the continued need for
            such system.
                (B) Findings of the Functional Management Review conducted
            by the Secretary and program management actions planned by the
            Secretary for--
                        (i) the Base Level System Modernization and the
                    Sustaining Base Information System; and
                        (ii) the Standard Installation/Division Personnel
                    System-3.
                (C) An assessment of the implementation of migration systems
            and applications, including--
                        (i) identification of the systems and applications
                    by functional or business area, specifying target dates
                    for operation of the systems and applications;
                        (ii) identification of the legacy systems and
                    applications that will be terminated;
                        (iii) the cost of and schedules for implementing the
                    migration systems and applications; and
                        (iv) termination schedules.
                (D) A certification by the Secretary that each information
            system that is subject to review by the Major Automated
            Information System Review Committee of the Department is cost-
            effective and supports the corporate information manage

    [[Page 110 STAT. 277]]

            ment goals of the Department, including the results of the
            review conducted for each such system by the Committee.

                            Subtitle G--Other Matters

    SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

        (a) Management of Working-Capital Funds.--(1) Chapter 131 of title
    10, United States Code, is amended by inserting after section 2215 the
    following new section:

    ``Sec. 2216. Defense Business Operations Fund

        ``(a) Management of Working-Capital Funds and Certain Activities.--
    The Secretary of Defense may manage the performance of the working-
    capital funds and industrial, commercial, and support type activities
    described in subsection (b) through the fund known as the Defense
    Business Operations Fund, which is established on the books of the
    Treasury. Except for the funds and activities specified in subsection
    (b), no other functions, activities, funds, or accounts of the
    Department of Defense may be managed or converted to management through
    the Fund.
        ``(b) Funds and Activities Included.--The funds and activities
    referred to in subsection (a) are the following:
                ``(1) Working-capital funds established under section 2208
            of this title and in existence on December 5, 1991.
                ``(2) Those activities that, on December 5, 1991, were
            funded through the use of a working-capital fund established
            under that section.
                ``(3) The Defense Finance and Accounting Service.
                ``(4) The Defense Commissary Agency.
                ``(5) The Defense Reutilization and Marketing Service.
                ``(6) The Joint Logistics Systems Center.

        ``(c) Separate Accounting, Reporting, and Auditing of Funds and
    Activities.--(1) The Secretary of Defense shall provide in accordance
    with this subsection for separate accounting, reporting, and auditing of
    funds and activities managed through the Fund.

        ``(2) The Secretary shall maintain the separate identity of each
    fund and activity managed through the Fund that (before the
    establishment of the Fund) was managed as a separate Fund or activity.
        ``(3) <<NOTE: Records.>> The Secretary shall maintain separate
    records for each function for which payment is made through the Fund and
    which (before the establishment of the Fund) was paid directly through
    appropriations, including the separate identity of the appropriation
    account used to pay for the performance of the function.

        ``(d) Charges for Goods and Services Provided Through the Fund.--(1)
    Charges for goods and services provided through the Fund shall include
    the following:
                ``(A) Amounts necessary to recover the full costs of the
            goods and services, whenever practicable, and the costs of the
            development, implementation, operation, and maintenance of
            systems supporting the wholesale supply and maintenance
            activities of the Department of Defense.
                ``(B) Amounts for depreciation of capital assets, set in
            accordance with generally accepted accounting principles.

    [[Page 110 STAT. 278]]

                ``(C) Amounts necessary to recover the full cost of the
            operation of the Defense Finance Accounting Service.

        ``(2) Charges for goods and services provided through the 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.

        ``(3)(A) The Secretary of Defense may submit to a customer a bill
    for the provision of goods and services through the Fund in advance of
    the provision of those goods and services.
        ``(B) <<NOTE: Reports.>> The Secretary shall submit to Congress a
    report on advance billings made pursuant to subparagraph (A)--
                ``(i) when the aggregate amount of all such billings after
            the date of the enactment of the National Defense Authorization
            Act for Fiscal Year 1996 reaches $100,000,000; and
                ``(ii) whenever the aggregate amount of all such billings
            after the date of a preceding report under this subparagraph
            reaches $100,000,000.

        ``(C) Each report under subparagraph (B) shall include, for each
    such advance billing, the following:
                ``(i) An explanation of the reason for the advance billing.
                ``(ii) An analysis of the impact of the advance billing on
            readiness.
                ``(iii) An analysis of the impact of the advance billing on
            the customer so billed.

        ``(e) Capital Asset Subaccount.--(1) Amounts charged for
    depreciation of capital assets pursuant to subsection (d)(1)(B) shall be
    credited to a separate capital asset subaccount established within the
    Fund.

        ``(2) The Secretary of Defense may award contracts for capital
    assets of the Fund in advance of the availability of funds in the
    subaccount.
        ``(f) Procedures For Accumulation of Funds.--The Secretary of
    Defense shall establish billing procedures to ensure that the balance in
    the Fund does not exceed the amount necessary to provide for the working
    capital requirements of the Fund, as determined by the Secretary.
        ``(g) Purchase From Other Sources.--The Secretary of Defense or the
    Secretary of a military department may purchase goods and services that
    are available for purchase from the Fund from a source other than the
    Fund if the Secretary determines that such source offers a more
    competitive rate for the goods and services than the Fund offers.
        ``(h) Annual Reports and Budget.--The Secretary of Defense 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 state

    [[Page 110 STAT. 279]]

            ment 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.

        ``(i) Definitions.--In this section:
                ``(1) The term `capital assets' means the following capital
            assets that have a development or acquisition cost of not less
            than $50,000:
                        ``(A) Minor construction projects financed by the
                    Fund pursuant to section 2805(c)(1) of this title.
                        ``(B) Automatic data processing equipment, software.
                        ``(C) Equipment other than equipment described in
                    subparagraph (B).
                        ``(D) Other capital improvements.
                ``(2) The term `Fund' means the Defense Business Operations
            Fund.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2215 the
    following new item:

    ``2216. Defense Business Operations Fund.''.

        (b) Conforming Repeals.--The following provisions of law are hereby
    repealed:
                (1) Subsections (b), (c), (d), and (e) of section 311 of the
            National Defense Authorization Act for Fiscal Year 1995 (Public
            Law 103-337; 10 U.S.C. 2208 note).
                (2) Subsections (a) and (b) of section 333 of the National
            Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
            160; 10 U.S.C. 2208 note).
                (3) Section 342 of the National Defense Authorization Act
            for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208 note).
                (4) Section 316 of the National Defense Authorization Act
            for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C.
            2208 note).

    [[Page 110 STAT. 280]]

                (5) Section 8121 of the Department of Defense Appropriations
            Act, 1992 (Public Law 102-172; 10 U.S.C. 2208 note).
    SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE
                            EXCHANGED TO BENEFIT THE HISTORICAL
                            COLLECTION OF THE ARMED FORCES.

        Section 2572(b)(1) of title 10, United States Code, is amended by
    striking out ``not needed by the armed forces'' and all that follows
    through the end of the paragraph and inserting in lieu thereof the
    following: ``not needed by the armed forces for any of the following
    items or services if such items or services directly benefit the
    historical collection of the armed forces:
                ``(A) Similar items held by any individual, organization,
            institution, agency, or nation.
                ``(B) Conservation supplies, equipment, facilities, or
            systems.
                ``(C) Search, salvage, or transportation services.
                ``(D) Restoration, conservation, or preservation services.
                ``(E) Educational programs.''.

    SEC. 373. FINANCIAL MANAGEMENT TRAINING.

        (a) Limitation.--The Secretary of Defense may enter into a capital
    lease for the establishment of a Department of Defense financial
    management training center no earlier than the date that is 30 days
    after the date on which the Secretary of Defense submits to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives, in accordance with subsection
    (b), a certification of the need for such a center and a report on
    financial management training for Department of Defense personnel.
        (b) Certification and Report.--(1) The certification and report
    referred to in subsection (a) are the following:
                (A) Certification by the Secretary of the need for such a
            center.
                (B) A report, submitted with the certification, on financial
            management training for Department of Defense personnel.

        (2) Any report under paragraph (1) shall contain the following:
                (A) The Secretary's analysis of the requirements for
            providing financial management training for employees of the
            Department of Defense.
                (B) The alternatives considered by the Secretary for meeting
            those requirements.
                (C) A detailed plan for meeting those requirements.
                (D) A financial analysis of the estimated short-term and
            long-term costs of carrying out the plan.

        (3) If, upon completing the analysis referred to in paragraph (2)(A)
    and after considering alternatives as described in paragraph (2)(B), the
    Secretary determines to meet the requirements for providing financial
    management training for employees of the Department of Defense through
    establishment of a financial management training center, the Secretary--
                (A) shall make the determination of the location of the
            center using a merit-based selection process; and
                (B) shall include in the report under paragraph (1) a
            description of that merit-based selection process.

    [[Page 110 STAT. 281]]

    SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE SALE OF
                            CERTAIN LOST, ABANDONED, OR UNCLAIMED
                            PROPERTY.

        (a) Permanent Authority.--Section 2575 of title 10 is amended--
                (1) by striking out subsection (b) and inserting in lieu
            thereof the following:

        ``(b)(1) In the case of lost, abandoned, or unclaimed personal
    property found on a military installation, the proceeds from the sale of
    the property under this section shall be credited to the operation and
    maintenance account of that installation and used--
                ``(A) to reimburse the installation for any costs incurred
            by the installation to collect, transport, store, protect, or
            sell the property; and
                ``(B) to the extent that the amount of the proceeds exceeds
            the amount necessary for reimbursing all such costs, to support
            morale, welfare, and recreation activities under the
            jurisdiction of the armed forces that are conducted for the
            comfort, pleasure, contentment, or physical or mental
            improvement of members of the armed forces at such installation.

        ``(2) The net proceeds from the sale of other property under this
    section shall be covered into the Treasury as miscellaneous receipts.'';
    and
                (2) by adding at the end the following:

        ``(d)(1) The owner (or heirs, next of kin, or legal representative
    of the owner) of personal property the proceeds of which are credited to
    a military installation under subsection (b)(1) may file a claim with
    the Secretary of Defense for the amount equal to the proceeds (less
    costs referred to in subparagraph (A) of such subsection). Amounts to
    pay the claim shall be drawn from the morale, welfare, and recreation
    account for the installation that received the proceeds.
        ``(2) The owner (or heirs, next of kin, or legal representative of
    the owner) may file a claim with the Comptroller General of the United
    States for proceeds covered into the Treasury under subsection (b)(2).
        ``(3) Unless a claim is filed under this subsection within 5 years
    after the date of the disposal of the property to which the claim
    relates, the claim may not be considered by a court, the Secretary of
    Defense (in the case of a claim filed under paragraph (1)), or the
    Comptroller General of the United States (in the case of a claim filed
    under paragraph (2)).''.
        (b) Repeal of Authority for Demonstration Program.--Section 343 of
    the National Defense Authorization Act for Fiscal Years 1992 and 1993
    (Public Law 102-190; 105 Stat. 1343) is repealed.
    SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND OTHER
                            SUPPLIES OF THE NAVY AND MARINE CORPS.

        (a) In General.--(1) Chapter 651 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 7606. Subsistence and other supplies: members of armed
                        forces; veterans; executive or military
                        departments and employees; prices

        ``(a)(1) The Secretary of the Navy shall procure and sell, for cash
    or credit--

    [[Page 110 STAT. 282]]

                ``(A) articles designated by the Secretary to members of the
            Navy and Marine Corps; and
                ``(B) items of individual clothing and equipment to members
            of the Navy and Marine Corps, under such restrictions as the
            Secretary may prescribe.

        ``(2) An account of sales on credit shall be kept and the amount due
    reported to the Secretary. Except for articles and items acquired
    through the use of working capital funds under section 2208 of this
    title, sales of articles shall be at cost, and sales of individual
    clothing and equipment shall be at average current prices, including
    overhead, as determined by the Secretary.
        ``(b) The Secretary shall sell subsistence supplies to members of
    other armed forces at the prices at which like property is sold to
    members of the Navy and Marine Corps.
        ``(c) The Secretary may sell serviceable supplies, other than
    subsistence supplies, to members of other armed forces for the buyers'
    use in the service. The prices at which the supplies are sold shall be
    the same prices at which like property is sold to members of the Navy
    and Marine Corps.
        ``(d) A person who has been discharged honorably or under honorable
    conditions from the Army, Navy, Air Force or Marine Corps and who is
    receiving care and medical treatment from the Public Health Service or
    the Department of Veterans Affairs may buy subsistence supplies and
    other supplies, except articles of uniform, at the prices at which like
    property is sold to members of the Navy and Marine Corps.
        ``(e) Under such conditions as the Secretary may prescribe, exterior
    articles of uniform may be sold to a person who has been discharged
    honorably or under honorable conditions from the Navy or Marine Corps,
    at the prices at which like articles are sold to members of the Navy or
    Marine Corps. This subsection does not modify sections 772 or 773 of
    this title.
        ``(f) <<NOTE: Regulations.>> Under regulations prescribed by the
    Secretary, payment for subsistence supplies shall be made in cash or by
    commercial credit.

        ``(g)(1) The Secretary may provide for the procurement and sale of
    stores designated by the Secretary to such civilian officers and
    employees of the United States, and such other persons, as the Secretary
    considers proper--
                ``(A) at military installations outside the United States;
            and
                ``(B) subject to paragraph (2), at military installations
            inside the United States where the Secretary determines that it
            is impracticable for those civilian officers, employees, and
            persons to obtain such stores from commercial enterprises
            without impairing the efficient operation of military
            activities.

        ``(2) Sales to civilian officers and employees inside the United
    States may be made under paragraph (1) only to civilian officers and
    employees residing within military installations.
        ``(h) Appropriations for subsistence of the Navy or Marine Corps may
    be applied to the purchase of subsistence supplies for sale to members
    of the Navy and Marine Corps on active duty for the use of such members
    and their families.''.

    [[Page 110 STAT. 283]]

        (2) The table of sections at the beginning of chapter 651 of such
    title is amended by adding at the end the following:

    ``7606. Subsistence and other supplies: members of armed forces;
               veterans; executive or military departments and employees;
               prices.''.

        (b) Conforming Amendments for Other Armed Forces.--(1) Section 4621
    of such title is amended--
                (A) by striking out ``The branch, office, or officer
            designated by the Secretary of the Army'' in subsection (a) and
            inserting in lieu thereof ``The Secretary of the Army'';
                (B) by striking out ``The branch, office, or officer
            designated by the Secretary'' both places it appears in
            subsections (b) and (c) and inserting in lieu thereof ``The
            Secretary''; and
                (C) by inserting before the period at the end of subsection
            (f) the following: ``or by commercial credit''.

        (2) Section 9621 of such title is amended--
                (A) by striking out ``The Air Force shall'' in subsection
            (b) and inserting in lieu thereof ``The Secretary shall''; and
                (B) by inserting before the period at the end of subsection
            (f) the following: ``or by commercial credit''.
    SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CERTAIN
                            ACTIVITIES HELD ON MILITARY INSTALLATIONS.

        Section 2544 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) In the case of a Boy Scout Jamboree held on a military
    installation, the Secretary of Defense may provide personnel services
    and logistical support at the military installation in addition to the
    support authorized under subsections (a) and (d).''.

    SEC. 377. RETENTION OF MONETARY AWARDS.

        (a) Monetary Awards.--Chapter 155 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 2610. Competitions for excellence: acceptance of monetary awards

        ``(a) Acceptance Authorized.--The Secretary of Defense may accept a
    monetary award given to the Department of Defense by a nongovernmental
    entity as a result of the participation of the Department in a
    competition carried out to recognize excellence or innovation in
    providing services or administering programs.
        ``(b) Disposition of Awards.--A monetary award accepted under
    subsection (a) shall be credited to one or more nonappropriated fund
    accounts supporting morale, welfare, and recreation activities for the
    command, installation, or other activity that is recognized for the
    award. Amounts so credited may be expended only for such activities.
        ``(c) Incidental Expenses.--Subject to such limitations as may be
    provided in appropriation Acts, appropriations available to the
    Department of Defense may be used to pay incidental expenses incurred by
    the Department to participate in a competition described in subsection
    (a) or to accept a monetary award under this section.
        ``(d) Regulations and Reporting.--(1) The Secretary shall prescribe
    regulations to determine the disposition of monetary awards accepted
    under this section and the payment of incidental expenses under
    subsection (c).

    [[Page 110 STAT. 284]]

        ``(2) At the end of each year, the Secretary shall submit to
    Congress a report for that year describing the disposition of monetary
    awards accepted under this section and the payment of incidental
    expenses under subsection (c).
        ``(e) Termination.--The authority of the Secretary under this
    section shall expire two years after the date of the enactment of the
    National Defense Authorization Act for Fiscal Year 1996.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2610. Competitions for excellence: acceptance of monetary awards.''.

    SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN
                            EMERGENCY RESPONSE ACTIONS.

        Section 372 of title 10, United States Code, is amended--
                (1) by inserting ``(a) In General.--'' before ``The
            Secretary of Defense''; and
                (2) by adding at the end the following new subsection:

        ``(b) Emergencies Involving Chemical and Biological Agents.--(1) In
    addition to equipment and facilities described in subsection (a), the
    Secretary may provide an item referred to in paragraph (2) to a Federal,
    State, or local law enforcement or emergency response agency to prepare
    for or respond to an emergency involving chemical or biological agents
    if the Secretary determines that the item is not reasonably available
    from another source.
        ``(2) An item referred to in paragraph (1) is any material or
    expertise of the Department of Defense appropriate for use in preparing
    for or responding to an emergency involving chemical or biological
    agents, including the following:
                ``(A) Training facilities.
                ``(B) Sensors.
                ``(C) Protective clothing.
                ``(D) Antidotes.''.
    SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND CIVIL
                            DEFENSE PREPAREDNESS TO RESPOND TO
                            EMERGENCIES RESULTING FROM A CHEMICAL,
                            BIOLOGICAL, RADIOLOGICAL, OR NUCLEAR
                            ATTACK.

        (a) Report.--(1) Not later than March 1, 1996, the Secretary of
    Defense and the Secretary of Energy shall submit to Congress a joint
    report on the military and civil defense plans and programs of the
    Department of Defense to prepare for and respond to the effects of an
    emergency in the United States resulting from a chemical, biological,
    radiological, or nuclear attack on the United States (hereinafter in
    this section referred to as an ``attack-related civil defense
    emergency'').
        (2) The report shall be prepared in consultation with the Director
    of the Federal Emergency Management Agency.

        (b) Content of Report.--The report shall include the following:
                (1) A discussion of the military and civil defense plans and
            programs of the Department of Defense for preparing for and
            responding to an attack-related civil defense emergency arising
            from an attack of a type for which the Department of Defense has
            a primary responsibility to respond.
                (2) A discussion of the military and civil defense plans and
            programs of the Department of Defense for preparing for

    [[Page 110 STAT. 285]]

            and providing a response to an attack-related civil defense
            emergency arising from an attack of a type for which the
            Department of Defense has responsibility to provide a supporting
            response.
                (3) A description of any actions, and any recommended
            legislation, that the Secretaries consider necessary for
            improving the preparedness of the Department of Defense to
            respond effectively to an attack-related civil defense
            emergency.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    SEC. 401. <<NOTE: 10 USC 115 note.>> END STRENGTHS FOR ACTIVE FORCES.

        (a) Fiscal Year 1996.--The Armed Forces are authorized strengths for
    active duty personnel as of September 30, 1996, as follows:
                (1) The Army, 495,000, of which not more than 81,300 may be
            commissioned officers.
                (2) The Navy, 428,340, of which not more than 58,870 may be
            commissioned officers.
                (3) The Marine Corps, 174,000, of which not more than 17,978
            may be commissioned officers.
                (4) The Air Force, 388,200, of which not more than 75,928
            may be commissioned officers.

        (b) Floor on End Strengths.--(1) Chapter 39 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 691. Permanent end strength levels to support two major
                        regional contingencies

        ``(a) The end strengths specified in subsection (b) are the minimum
    strengths necessary to enable the armed forces to fulfill a national
    defense strategy calling for the United States to be able to
    successfully conduct two nearly simultaneous major regional
    contingencies.
        ``(b) Unless otherwise provided by law, the number of members of the
    armed forces (other than the Coast Guard) on active duty at the end of
    any fiscal year shall be not less than the following:
                ``(1) For the Army, 495,000.
                ``(2) For the Navy, 395,000.
                ``(3) For the Marine Corps, 174,000.
                ``(4) For the Air Force, 381,000.

        ``(c) No funds appropriated to the Department of Defense may be used
    to implement a reduction of the active duty end strength for any of the
    armed forces for any fiscal year below the level specified in subsection
    (b) unless the Secretary of Defense submits to Congress notice of the
    proposed lower end strength levels and a justification for those levels.
    No action may then be taken to implement such a reduction for that
    fiscal year until the end of the six-month period beginning on the date
    of the receipt of such notice by Congress.

        ``(d) For a fiscal year for which the active duty end strength
    authorized by law pursuant to section 115(a)(1)(A) of this title

    [[Page 110 STAT. 286]]

    for any of the armed forces is identical to the number applicable to
    that armed force under subsection (b), the Secretary of Defense may
    reduce that number by not more than 0.5 percent.
        ``(e) The number of members of the armed forces on active duty shall
    be counted for purposes of this section in the same manner as applies
    under section 115(a)(1) of this title.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``691. Permanent end strength levels to support two major regional
               contingencies.''.

        (c) Active Component End Strength Flexibility.--Section 115(c)(1) of
    title 10, United States Code, is amended by striking out ``0.5 percent''
    and inserting in lieu thereof ``1 percent''.
    SEC. 402.  <<NOTE: 10 USC 523 note.>> TEMPORARY VARIATION IN DOPMA
                            AUTHORIZED END STRENGTH LIMITATIONS FOR
                            ACTIVE DUTY AIR FORCE AND NAVY OFFICERS IN
                            CERTAIN GRADES.

        (a) Air Force Officers.--In the administration of the limitation
    under section 523(a)(1) of title 10, United States Code, for fiscal
    years 1996 and 1997, the numbers applicable to officers of the Air Force
    serving on active duty in the grades of major, lieutenant colonel, and
    colonel shall be the numbers set forth for that fiscal year in the
    following table (rather than the numbers determined in accordance with
    the table in that section):

    ----------------------------------------------------------------------------------------------------------------
                                                             Number of officers who may be serving on active duty in
                                                                                  the grade of:
                         Fiscal year:                      ---------------------------------------------------------
                                                                  Major          Lieutenant colonel       Colonel
    ----------------------------------------------------------------------------------------------------------------
      1996................................................            15,566                  9,876           3,609
      1997................................................            15,645                  9,913           3,627
    ----------------------------------------------------------------------------------------------------------------

        (b) Navy Officers.--In the administration of the limitation under
    section 523(a)(2) of title 10, United States Code, for fiscal years 1996
    and 1997, the numbers applicable to officers of the Navy serving on
    active duty in the grades of lieutenant commander, commander, and
    captain shall be the numbers set forth for that fiscal year in the
    following table (rather than the numbers determined in accordance with
    the table in that section):

    ----------------------------------------------------------------------------------------------------------------
                                                             Number of officers who may be serving on active duty in
                                                                                  the grade of:
                         Fiscal year:                      ---------------------------------------------------------
                                                                Lieutenant
                                                                commander            Commander            Captain
    ----------------------------------------------------------------------------------------------------------------
      1996................................................            11,924                  7,390           3,234
      1997................................................            11,732                  7,297           3,188
    ----------------------------------------------------------------------------------------------------------------

    SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIREMENT
                            NOT TO BE COUNTED.

        (a) Distribution of Officers on Active Duty in General and Flag
    Officer Grades.--Section 525 of title 10, United States Code, is amended
    by adding at the end the following new subsection:
        ``(d) An officer continuing to hold the grade of general or admiral
    under section 601(b)(4) of this title after relief from the position of
    Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief
    of Naval Operations, Chief of Staff of the Air Force, or Commandant of
    the Marine Corps shall not be counted for purposes of this section.''.

    [[Page 110 STAT. 287]]

        (b) Number of Officers on Active Duty in Grade of General or
    Admiral.--Section 528(b) of such title is amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following:

        ``(2) An officer continuing to hold the grade of general or admiral
    under section 601(b)(4) of this title after relief from
    the position of Chairman of the Joint Chiefs of Staff, Chief of Staff of
    the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or
    Commandant of the Marine Corps shall not be counted for purposes of this
    section.''.

        (c) Clarification.--Section 601(b) of such title is amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``of importance and responsibility designated'' and inserting in
            lieu thereof ``designated under subsection (a) or by law'';
                (2) in paragraph (1), by striking out ``of importance and
            responsibility'';
                (3) in paragraph (2), by striking out ``designating'' and
            inserting in lieu thereof ``designated under subsection (a) or
            by law''; and
                (4) in paragraph (4), by inserting ``under subsection (a) or
            by law'' after ``designated''.

                           Subtitle B--Reserve Forces

    SEC. 411. <<NOTE: 10 USC 12001 note.>> END STRENGTHS FOR SELECTED
                RESERVE.

        (a) Fiscal Year 1996.--The Armed Forces are authorized strengths for
    Selected Reserve personnel of the reserve components as of September 30,
    1996, as follows:
                (1) The Army National Guard of the United States, 373,000.
                (2) The Army Reserve, 230,000.
                (3) The Naval Reserve, 98,894.
                (4) The Marine Corps Reserve, 42,274.
                (5) The Air National Guard of the United States, 112,707.
                (6) The Air Force Reserve, 73,969.
                (7) The Coast Guard Reserve, 8,000.

        (b) Waiver Authority.--The Secretary of Defense may vary the end
    strength authorized by subsection (a) by not more than 2 percent.
        (c) Adjustments.--The end strengths prescribed by subsection (a) for
    the Selected Reserve of any reserve component for a fiscal year shall be
    proportionately reduced by--
                (1) the total authorized strength of units organized to
            serve as units of the Selected Reserve of such component which
            are on active duty (other than for training) at the end of the
            fiscal year, and
                (2) the total number of individual members not in units
            organized to serve as units of the Selected Reserve of such
            component who are on active duty (other than for training or for
            unsatisfactory participation in training) without their consent
            at the end of the fiscal year.

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

    [[Page 110 STAT. 288]]

    SEC. 412.  <<NOTE: 10 USC 12001 note.>> 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, 1996,
    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, 23,390.
                (2) The Army Reserve, 11,575.
                (3) The Naval Reserve, 17,587.
                (4) The Marine Corps Reserve, 2,559.
                (5) The Air National Guard of the United States, 10,066.
                (6) The Air Force Reserve, 628.
    SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL ASSIGNED
                            IN SUPPORT OF RESERVE COMPONENT TRAINING.

        Section 414(c) of the National Defense Authorization Act for Fiscal
    Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 12001 note) is
    amended--
                (1) by inserting ``(1)'' before ``The Secretary''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Secretary of Defense may count toward the number of active
    component personnel required under paragraph (1) to be assigned to serve
    as advisers under the program under this section any active component
    personnel who are assigned to an active component unit (A) that was
    established principally for the purpose of providing dedicated training
    support to reserve component units, and (B) the primary mission of which
    is to provide such dedicated training support.''.
    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     643      140
    Lieutenant Colonel or Commander.....    1,524     520     672       90
    Colonel or Navy Captain.............      412     188     274     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.................................     603     202      366       20
    E-8.................................   2,585     429      890     94''.
    ------------------------------------------------------------------------

    SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE THREAT
                            REDUCTION PROGRAMS NOT TO BE COUNTED.

        Section 115(d) of title 10, United States Code, is amended by adding
    at the end the following:

    [[Page 110 STAT. 289]]

                ``(8) Members of the Selected Reserve of the Ready Reserve
            on active duty for more that 180 days to support programs
            described in section 1203(b) of the Cooperative Threat Reduction
            Act of 1993 (title XII of Public Law 103-160; 22 U.S.C.
            5952(b)).''.
    SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY
                            CONTACTS AND COMPARABLE ACTIVITIES NOT TO
                            BE COUNTED.

        Section 168 of title 10, United States Code, is amended--
                (1) by redesignating subsection (f) as subsection (g); and
                (2) by inserting after subsection (e) the following new
            subsection (f):

        ``(f) Active Duty End Strengths.--(1) A member of a reserve
    component referred to in paragraph (2) shall not be counted for purposes
    of the following personnel strength limitations:
                ``(A) The end strength for active-duty personnel authorized
            pursuant to section 115(a)(1) of this title for the fiscal year
            in which the member carries out the activities referred to in
            paragraph (2).
                ``(B) The authorized daily average for members in pay grades
            E-8 and E-9 under section 517 of this title for the calendar
            year in which the member carries out such activities.
                ``(C) The authorized strengths for commissioned officers
            under section 523 of this title for the fiscal year in which the
            member carries out such activities.

        ``(2) A member of a reserve component referred to in paragraph (1)
    is any member on active duty under an order to active duty for 180 days
    or more who is engaged in activities authorized under this section.''.

                   Subtitle C--Military Training Student Loads

    SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

        (a) In General.--For fiscal year 1996, the components of the Armed
    Forces are authorized average military training loads as follows:
                (1) The Army, 75,013.
                (2) The Navy, 44,238.
                (3) The Marine Corps, 26,095.
                (4) The Air Force, 33,232.

        (b) Scope.--The average military training student loads authorized
    for an armed force under subsection (a) apply to the active and reserve
    components of that armed force.
        (c) Adjustments.--The average military training student loads
    authorized in subsection (a) shall be adjusted consistent with the end
    strengths authorized in subtitles A and B. The Secretary of Defense
    shall prescribe the manner in which such adjustments shall be
    apportioned.

    [[Page 110 STAT. 290]]

                   Subtitle D--Authorization of Appropriations

    SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

        There is hereby authorized to be appropriated to the Department of
    Defense for military personnel for fiscal year 1996 a total of
    $69,191,008,000. The authorization in the preceding sentence supersedes
    any other authorization of appropriations (definite or indefinite) for
    such purpose for fiscal year 1996.
    SEC. 432.  <<NOTE: 10 USC 115 note.>> AUTHORIZATION FOR INCREASE
                            IN ACTIVE-DUTY END STRENGTHS.

        (a) Authorization.--There is hereby authorized to be appropriated to
    the Department of Defense for fiscal year 1996 for military personnel
    the sum of $112,000,000. Any amount appropriated pursuant to this
    section shall be allocated, in such manner as the Secretary of Defense
    prescribes, among appropriations for active-component military personnel
    for that fiscal year and shall be available only to increase the number
    of members of the Armed Forces on active duty during that fiscal year
    (compared to the number of members that would be on active duty but for
    such appropriation).
        (b) Effect on End Strengths.--The end-strength authorizations in
    section 401 shall each be deemed to be increased by such number as
    necessary to take account of additional members of the Armed Forces
    authorized by the Secretary of Defense pursuant to subsection (a).

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    SEC. 501. JOINT OFFICER MANAGEMENT.

        (a) Critical Joint Duty Assignment Positions.--Section 661(d)(2)(A)
    of title 10, United States Code, is amended by striking out ``1,000''
    and inserting in lieu thereof ``800''.

        (b) Additional Qualifying Joint Service.--Section 664 of such title
    is amended by adding at the end the following:
        ``(i) Joint Duty Credit for Certain Joint Task Force Assignments.--
    (1) In the case of an officer who completes service in a qualifying
    temporary joint task force assignment, the Secretary of Defense, with
    the advice of the Chairman of the Joint Chiefs of Staff, may (subject to
    the criteria prescribed under paragraph (4)) grant the officer--
                ``(A) credit for having completed a full tour of duty in a
            joint duty assignment; or
                ``(B) credit countable for determining cumulative service in
            joint duty assignments.

        ``(2)(A) For purposes of paragraph (1), a qualifying temporary joint
    task force assignment of an officer is a temporary assignment, any part
    of which is performed by the officer on or after the date of the
    enactment of this subsection--

    [[Page 110 STAT. 291]]

                ``(i) to the headquarters staff of a United States joint
            task force that is part of a unified command or the United
            States element of the headquarters staff of a multinational
            force; and
                ``(ii) with respect to which the Secretary of Defense
            determines that service of the officer in that assignment is
            equivalent to that which would be gained by the officer in a
            joint duty assignment.

        ``(B) An officer may not be granted credit under this subsection
    unless the officer is recommended for such credit by the Chairman of the
    Joint Chiefs of Staff.
        ``(3) Credit under paragraph (1) (including a determination under
    paragraph (2)(A)(ii) and a recommendation under paragraph (2)(B) with
    respect to such credit) may be granted only on a case-by-case basis in
    the case of an individual officer.
        ``(4) <<NOTE: Regulations.>> The Secretary of Defense shall
    prescribe by regulation criteria for determining whether an officer may
    be granted credit under paragraph (1) with respect to service in a
    qualifying temporary joint task force assignment. The criteria shall
    apply uniformly among the armed forces and shall include the following
    requirements:
                ``(A) For an officer to be credited as having completed a
            full tour of duty in a joint duty assignment, the length of the
            officer's service in the qualifying temporary joint task force
            assignment must meet the requirements of subsection (a) or (c).
                ``(B) For an officer to be credited with service for
            purposes of determining cumulative service in joint duty
            assignments, the officer must serve at least 90 consecutive days
            in the qualifying temporary joint task force assignment.
                ``(C) The service must be performed in support of a mission
            that is directed by the President or that is assigned by the
            President to United States forces in the joint task force
            involved.
                ``(D) The joint task force must be constituted or designated
            by the Secretary of Defense or by the commander of a combatant
            command or of another force.
                ``(E) The joint task force must conduct combat or combat-
            related operations in a unified action under joint or
            multinational command and control.

        ``(5) Officers for whom joint duty credit is granted pursuant to
    this subsection may not be taken into account for the purposes of any of
    the following provisions of this title: section 661(d)(1), section
    662(a)(3), section 662(b), subsection (a) of this section, and
    paragraphs (7), (8), (9), (11), and (12) of section 667.
        ``(6) In the case of an officer credited with having completed a
    full tour of duty in a joint duty assignment pursuant to this
    subsection, the Secretary of Defense may waive the requirement in
    paragraph (1)(B) of section 661(c) of this title that the tour of duty
    in a joint duty assignment be performed after the officer completes a
    program of education referred to in paragraph (1)(A) of that section.
    The provisions of subparagraphs (C) and (D) of section 661(c)(3) of this
    title shall apply to such a waiver in the same manner as to a waiver
    under subparagraph (A) of that section.''.

    [[Page 110 STAT. 292]]

        (c) Information in Annual Report.--Section 667 of such title is
    amended by striking out paragraph (16) and inserting after paragraph
    (15) the following new paragraph (16):
                ``(16) The number of officers granted credit for service in
            joint duty assignments under section 664(i) of this title and--
                        ``(A) of those officers--
                              ``(i) the number of officers credited with
                          having completed a tour of duty in a joint duty
                          assignment; and
                              ``(ii) the number of officers granted credit
                          for purposes of determining cumulative service in
                          joint duty assignments; and
                        ``(B) the identity of each operation for which an
                    officer has been granted credit pursuant to section
                    664(i) of this title and a brief description of the
                    mission of the operation.''.

        (d) Applicability of Limitation on Waiver Authority.--Section
    661(c)(3) of such title is amended--
                (1) in the third sentence of subparagraph (D), by striking
            out ``The total number'' and inserting in lieu thereof ``In the
            case of officers in grades below brigadier general and rear
            admiral (lower half), the total number''; and
                (2) by adding at the end the following new subparagraph:

        ``(E) There may not be more than 32 general and flag officers on
    active duty at the same time who were selected for the joint specialty
    while holding a general or flag officer grade and for whom a waiver was
    granted under this subparagraph.''.

        (e) Length of Second Joint Tour.--Section 664 of such title is
    amended--
                (1) in subsection (e)(2), by inserting after subparagraph
            (B) the following:
                ``(C) Service described in subsection (f)(6), except that no
            more than 10 percent of all joint duty assignments shown on the
            list published pursuant to section 668(b)(2)(A) of this title
            may be so excluded in any year.''; and
                (2) in subsection (f)--
                        (A) in the matter preceding paragraph (1), by
                    striking out ``completion of--'' and inserting in lieu
                    thereof ``completion of any of the following:'';
                        (B) by striking out ``a'' at the beginning of
                    paragraphs (1), (2), (4), and (5) and inserting in lieu
                    thereof ``A'';
                        (C) by striking out ``cumulative'' in paragraph (3)
                    and inserting in lieu thereof ``Cumulative'';
                        (D) by striking out the semicolon at the end of
                    paragraphs (1), (2), and (3) and ``; or'' at the end of
                    paragraph (4) and inserting in lieu thereof a period;
                    and
                        (E) by adding at the end the following:
                ``(6) A second joint duty assignment that is less than the
            period required under subsection (a), but not less than two
            years, without regard to whether a waiver was granted for such
            assignment under subsection (b).''.

        (f) Technical Amendment.--Section 664(e)(1) of such title is amended
    by striking out ``(after fiscal year 1990)''.
    SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR GENERAL
                            AND REAR ADMIRAL.

        (a) Applicability of Time-in-Grade Requirements.--Section 1370 of
    title 10, United States Code, is amended--

    [[Page 110 STAT. 293]]

                (1) in subsection (a)(2)(A), by striking out ``and below
            lieutenant general or vice admiral''; and
                (2) in the first sentence of subsection (d)(2)(B), as added
            effective October 1, 1996, by section 1641 of the Reserve
            Officer Personnel Management Act (title XVI of Public Law 103-
            337; 108 Stat. 2968), by striking out ``and below lieutenant
            general or vice admiral''.

        (b) Retirement in Highest Grade Upon Certification of Satisfactory
    Service.--Subsection (c) of such section is amended to read as follows:
        ``(c) Officers in O-9 and O-10 Grades.--(1) An officer who is
    serving in or has served in the grade of general or admiral or
    lieutenant general or vice admiral may be retired in that grade under
    subsection (a) only after the Secretary of Defense certifies in writing
    to the President and Congress that the officer served on active duty
    satisfactorily in that grade.
        ``(2) In the case of an officer covered by paragraph (1), the three-
    year service-in-grade requirement in paragraph (2)(A) of subsection (a)
    may not be reduced or waived under that subsection--
                ``(A) while the officer is under investigation for alleged
            misconduct; or
                ``(B) while there is pending the disposition of an adverse
            personnel action against the officer for alleged misconduct.''.

        (c) Repeal of Superseded Provisions.--Sections 3962(a), 5034,
    5043(c), and 8962(a) of such title are repealed.

        (d) Technical and Clerical Amendments.--(1) Sections 3962(b) and
    8962(b) of such title are amended by striking out ``(b) Upon'' and
    inserting in lieu thereof ``Upon''.
        (2) The table of sections at the beginning of chapter 505 of such
    title is amended by striking out the item relating to section 5034.
        (e) <<NOTE: 10 USC 1370 note.>> Effective Date for Amendment to
    Provision Taking Effect in 1996.--The amendment made by subsection
    (a)(2) shall take effect on October 1, 1996, immediately after
    subsection (d) of section 1370 of title 10, United States Code, takes
    effect under section 1691(b)(1) of the Reserve Officer Personnel
    Management Act (108 Stat. 3026).

        (f) Preservation of Applicability of Limitation.--Section
    1370(a)(2)(C) of title 10, United States Code, is amended by striking
    out ``The number of officers in an armed force in a grade'' and
    inserting in lieu thereof ``In the case of a grade below the grade of
    lieutenant general or vice admiral, the number of members of one of the
    armed forces in that grade''.
        (g) Stylistic Amendments.--Section 1370 of title 10, United States
    Code, is further amended--
                (1) in subsection (a), by striking out ``(a)(1)'' and
            inserting in lieu thereof ``(a) Rule for Retirement in Highest
            Grade Held Satisfactorily.--(1)'';
                (2) in subsection (b), by inserting ``Retirement in Next
            Lower Grade.--'' after ``(b)''; and
                (3) in subsection (d), as added effective October 1, 1996,
            by section 1641 of the Reserve Officer Personnel Management Act
            (title XVI of Public Law 103-337; 108 Stat. 2968), by striking
            out ``(d)(1)'' and inserting in lieu thereof ``(d) Reserve
            Officers.--(1)''.

    [[Page 110 STAT. 294]]

    SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE PROMOTION.

        (a) Authority and Limitations.--(1) Chapter 45 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 777. Wearing of insignia of higher grade before promotion
                      (frocking): authority; restrictions

        ``(a) Authority.--An officer who has been selected for promotion to
    the next higher grade may be authorized, under regulations and policies
    of the Department of Defense and subject to subsection (b), to wear the
    insignia for that next higher grade. An officer who is so authorized to
    wear the insignia of the next higher grade is said to be `frocked' to
    that grade.
        ``(b) Restrictions.--An officer may not be authorized to wear the
    insignia for a grade as described in subsection (a) unless--
                ``(1) the Senate has given its advice and consent to the
            appointment of the officer to that grade; and
                ``(2) the officer is serving in, or has received orders to
            serve in, a position for which that grade is authorized.

        ``(c) Benefits Not To Be Construed as Accruing.--(1) Authority
    provided to an officer as described in subsection (a) to wear the
    insignia of the next higher grade may not be construed as conferring
    authority for that officer to--
                ``(A) be paid the rate of pay provided for an officer in
            that grade having the same number of years of service as that
            officer; or
                ``(B) assume any legal authority associated with that grade.

        ``(2) The period for which an officer wears the insignia of the next
    higher grade under such authority may not be taken into account for any
    of the following purposes:
                ``(A) Seniority in that grade.
                ``(B) Time of service in that grade.

        ``(d) Limitation on Number of Officers Frocked to Specified
    Grades.--(1) The total number of colonels and Navy captains on the
    active-duty list who are authorized as described in subsection (a) to
    wear the insignia for the grade of brigadier general or rear admiral
    (lower half), as the case may be, may not exceed the following:
                ``(A) During fiscal years 1996 and 1997, 75.
                ``(B) During fiscal year 1998, 55.
                ``(C) After fiscal year 1998, 35.

        ``(2) The number of officers of an armed force on the active-duty
    list who are authorized as described in subsection (a) to wear the
    insignia for a grade to which a limitation on total number applies under
    section 523(a) of this title for a fiscal year may not exceed 1 percent
    of the total number provided for the officers in that grade in that
    armed force in the administration of the limitation under that section
    for that fiscal year.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``777. Wearing of insignia of higher grade before promotion (frocking):
               authority; restrictions.''.

        (b) <<NOTE: 10 USC 777 note.>> Temporary Variation of Limitations on
    Numbers of Frocked Officers.--In the administration of section 777(d)(2)
    of title 10, United States Code (as added by subsection (a)), the
    percent

    [[Page 110 STAT. 295]]

    limitation applied under that section for fiscal year 1996 shall be 2
    percent (instead of 1 percent).

        (c) Report.--Not later than September 1, 1996, the Secretary of
    Defense shall submit to Congress a report providing the assessment of
    the Secretary on the practice, known as ``frocking'', of authorizing an
    officer who has been selected for promotion to the next higher grade to
    wear the insignia for that next higher grade. The report shall include
    the Secretary's assessment of the appropriate number, if any, of
    colonels and Navy captains to be eligible under section 777(d)(1) of
    title 10, United States Code (as added by subsection (a)), to wear the
    insignia for the grade of brigadier general or rear admiral (lower
    half).
    SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS
                            SELECTED FOR EARLY RETIREMENT.

        (a) Selective Retirement of Warrant Officers.--Section 581 of title
    10, United States Code, is amended by adding at the end the following
    new subsection:
        ``(e) The Secretary concerned may defer for not more than 90 days
    the retirement of an officer otherwise approved for early retirement
    under this section in order to prevent a personal hardship to the
    officer or for other humanitarian reasons. Any such deferral shall be
    made on a case-by-case basis considering the circumstances of the case
    of the particular officer concerned. The authority of the Secretary to
    grant such a deferral may not be delegated.''.
        (b) Selective Early Retirement of Active-Duty Officers.--Section
    638(b) of title 10, United States Code, is amended by adding at the end
    the following new paragraph:
        ``(3) The Secretary concerned may defer for not more than 90 days
    the retirement of an officer otherwise approved for early retirement
    under this section or section 638a of this title in order to prevent a
    personal hardship to the officer or for other humanitarian reasons. Any
    such deferral shall be made on a case-by-case basis considering the
    circumstances of the case of the particular officer concerned. The
    authority of the Secretary to grant such a deferral may not be
    delegated.''.

    SEC. 505. ARMY OFFICER MANNING LEVELS.

        (a) In General.--(1) Chapter 331 of title 10, United States Code, is
    amended by inserting after the table of sections the following new
    section:
    ``Sec. 3201. Officers on active duty: minimum strength based on
                        requirements

        ``(a) The Secretary of the Army shall ensure that (beginning with
    fiscal year 1999) the strength at the end of each fiscal year of
    officers on active duty is sufficient to enable the Army to meet at
    least that percentage of the programmed manpower structure for officers
    for the active component of the Army that is provided for in the most
    recent Defense Planning Guidance issued by the Secretary of Defense.
        ``(b) The number of officers on active duty shall be counted for
    purposes of this section in the same manner as applies under section
    115(a)(1) of this title.
        ``(c) In this section:
                ``(1) The term `programmed manpower structure' means the
            aggregation of billets describing the full manpower require

    [[Page 110 STAT. 296]]

            ments for units and organizations in the programmed force
            structure.
                ``(2) The term `programmed force structure' means the set of
            units and organizations that exist in the current year and that
            is planned to exist in each future year under the then-current
            Future-Years Defense Program.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after ``Sec.'' the following new item:

    ``3201. Officers on active duty: minimum strength based on
               requirements.''.

      (b) <<NOTE: 10 USC 3201 note.>> Assistance in Accomplishing
    Requirement.--The Secretary of Defense shall provide to the Army
    sufficient personnel and financial resources to enable the Army to meet
    the requirement specified in section 3201 of title 10, United States
    Code, as added by subsection (a).
    SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER THAN
                            PHYSICIANS TO BE APPOINTED AS SURGEON
                            GENERAL.

        (a) Surgeon General of the Army.--The third sentence of section
    3036(b) of title 10, United States Code, is amended by inserting after
    ``The Surgeon General'' the following: ``may be appointed from officers
    in any corps of the Army Medical Department and''.
        (b) Surgeon General of the Navy.--Section 5137 of such title is
    amended--
                (1) in the first sentence of subsection (a), by striking out
            ``in the Medical Corps'' and inserting in lieu thereof ``in any
            corps of the Navy Medical Department''; and
                (2) in subsection (b), by striking out ``in the Medical
            Corps'' and inserting in lieu thereof ``who is qualified to be
            the Chief of the Bureau of Medicine and Surgery''.

        (c) Surgeon General of the Air Force.--The first sentence of section
    8036 of such title is amended by striking out ``designated as medical
    officers under section 8067(a) of this title'' and inserting in lieu
    thereof ``in the Air Force medical department''.

    SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

        (a) Tenure and Grade of Deputy Judge Advocate General.--Section
    8037(d)(1) of such title is amended--
                (1) in the second sentence, by striking out ``two years''
            and inserting in lieu thereof ``four years''; and
                (2) by striking out the last sentence and inserting in lieu
            thereof the following: ``An officer appointed as Deputy Judge
            Advocate General who holds a lower regular grade shall be
            appointed in the regular grade of major general.''.

        (b) <<NOTE: 10 USC 8037 note.>> Effective Date.--The amendments made
    by subsection (a) apply to any appointment to the position of Deputy
    Judge Advocate General of the Air Force that is made after the date of
    the enactment of this Act.
    SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN NAVY
                            LIEUTENANTS WITH CRITICAL SKILLS.

        (a) Extension of Authority.--Subsection (f) of section 5721 of title
    10, United States Code, is amended by striking out ``September 30,
    1995'' and inserting in lieu thereof ``September 30, 1996''.
        (b) Limitation.--Such section is further amended--
                (1) by redesignating subsection (f), as amended by
            subsection (a), as subsection (g); and

    [[Page 110 STAT. 297]]

                (2) by inserting after subsection (e) the following new
            subsection (f):

        ``(f) Limitation on Number of Eligible Positions.--(1) An
    appointment under this section may only be made for service in a
    position designated by the Secretary of the Navy for purposes of this
    section. The number of positions so designated may not exceed 325.
        ``(2) <<NOTE: Notice.>> Whenever the Secretary makes a change to the
    positions designated under paragraph (1), the Secretary shall submit
    notice of the change in writing to Congress.''.

        (c) Report.--Not later than April 1, 1996, the Secretary of Defense
    shall submit to Congress a report providing the Secretary's assessment
    of that continuing need for the promotion authority under section 5721
    of title 10, United States Code. The Secretary shall include in the
    report the following:
                (1) The nature and grade structure of the positions for
            which such authority has been used.
                (2) The cause or causes of the reported chronic shortages of
            qualified personnel in the required grade to fill the positions
            specified under paragraph (1).
                (3) The reasons for the perceived inadequacy of the officer
            promotion system (including ``below-the-zone'' selections) to
            provide sufficient officers in the required grade to fill those
            positions.
                (4) The extent to which a bonus program or some other
            program would be a more appropriate means of resolving the
            reported chronic shortages in engineering positions.

        (d) Clerical Amendments.--Section 5721 of title 10, United States
    Code, is amended as follows:
                (1) Subsection (a) is amended by inserting ``Promo
            tion Authority for Certain Officer With Critical
            Skills.--'' after ``(a)''.
                (2) Subsection (b) is amended by inserting ``Status of
            Officers Appointed.--'' after ``(b)''.
                (3) Subsection (c) is amended by inserting ``Board
            Recommendation Required.--'' after ``(c)''.
                (4) Subsection (d) is amended by inserting ``Acceptance and
            Effective Date of Appointment.--'' after ``(d)''.
                (5) Subsection (e) is amended by inserting ``Termination of
            Appointment.--'' after ``(e)''.
                (6) Subsection (g), as redesignated by subsection (b)(1), is
            amended by inserting ``Termination of Appointment Authority.--''
            after ``(g)''.

        (e) <<NOTE: 10 USC 5721 note.>> Effective Date.--Subsection (f) of
    section 5721 of title 10, United States Code, as added by subsection
    (b)(2), shall take effect at the end of the 30-day period beginning on
    the date of the enactment of this Act and shall apply to any appointment
    under that section after the end of such period.
    SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF
                            ADMISSIONS OF MILITARY AND AIR FORCE
                            ACADEMIES.

        (a) Military Academy.--(1) Section 3920 of title 10, United States
    Code, is amended to read as follows:

    [[Page 110 STAT. 298]]

    ``Sec. 3920. More than thirty years: permanent professors and the
                        Director of Admissions of the United States
                        Military Academy

        ``(a) The Secretary of the Army may retire an officer specified in
    subsection (b) who has more than 30 years of service as a commissioned
    officer.
        ``(b) Subsection (a) applies in the case of the following officers:
                ``(1) Any permanent professor of the United States Military
            Academy.
                ``(2) The Director of Admissions of the United States
            Military Academy.''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 367 of such title is amended to read as
    follows:

    ``3920. More than thirty years: permanent professors and the Director of
               Admissions of the United States Military Academy.''.

        (b) Air Force Academy.--(1) Section 8920 of title 10, United States
    Code, is amended to read as follows:
    ``Sec. 8920. More than thirty years: permanent professors and the
                        Director of Admissions of the United States
                        Air Force Academy

        ``(a) The Secretary of the Air Force may retire an officer specified
    in subsection (b) who has more than 30 years of service as a
    commissioned officer.
        ``(b) Subsection (a) applies in the case of the following officers:
                ``(1) Any permanent professor of the United States Air Force
            Academy.
                ``(2) The Director of Admissions of the United States Air
            Force Academy.''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 867 of such title is amended to read as
    follows:

    ``8920. More than thirty years: permanent professors and the Director of
               Admissions of the United States Air Force Academy.''.

               Subtitle B--Matters Relating to Reserve Components

    SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT
                            AUTHORITIES.

        (a) Grade Determination Authority for Certain Reserve Medical
    Officers.--Sections 3359(b) and 8359(b) of title 10, United States Code,
    are each amended by striking out ``September 30, 1995'' and inserting in
    lieu thereof ``September 30, 1996''.
        (b) Promotion Authority for Certain Reserve Officers Serving on
    Active Duty.--Sections 3380(d) and 8380(d) of title 10, United States
    Code, are each amended by striking out ``September 30, 1995'' and
    inserting in lieu thereof ``September 30, 1996''.
        (c) <<NOTE: 10 USC 3360 note.>> Years of Service for Mandatory
    Transfer to the Retired Reserve.--Section 1016(d) of the Department of
    Defense Authorization Act, 1984 (10 U.S.C. 3360) is amended by striking
    out ``September 30, 1995'' and inserting in lieu thereof ``September 30,
    1996''.

    [[Page 110 STAT. 299]]

    SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS OF
                            READY RESERVE.

        (a) Establishment of Program.--(1) Subtitle E of title 10, United
    States Code, is amended by inserting after chapter 1213 the following
    new chapter:

           ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

    ``Sec.
    ``12521. Definitions.
    ``12522. Establishment of insurance program.
    ``12523. Risk insured.
    ``12524. Enrollment and election of benefits.
    ``12525. Benefit amounts.
    ``12526. Premiums.
    ``12527. Payment of premiums.
    ``12528. Reserve Mobilization Income Insurance Fund.
    ``12529. Board of Actuaries.
    ``12530. Payment of benefits.
    ``12531. Purchase of insurance.
    ``12532. Termination for nonpayment of premiums; forfeiture.

    ``Sec. 12521. Definitions

        ``In this chapter:
                ``(1) The term `insurance program' means the Ready Reserve
            Mobilization Income Insurance Program established under section
            12522 of this title.
                ``(2) The term `covered service' means active duty performed
            by a member of a reserve component under an order to active duty
            for a period of more than 30 days which specifies that the
            member's service--
                        ``(A) is in support of an operational mission for
                    which members of the reserve components have been
                    ordered to active duty without their consent; or
                        ``(B) is in support of forces activated during a
                    period of war declared by Congress or a period of
                    national emergency declared by the President or
                    Congress.
                ``(3) The term `insured member' means a member of the Ready
            Reserve who is enrolled for coverage under the insurance program
            in accordance with section 12524 of this title.
                ``(4) The term `Secretary' means the Secretary of Defense.
                ``(5) The term `Department' means the Department of Defense.
                ``(6) The term `Board of Actuaries' means the Department of
            Defense Education Benefits Board of Actuaries referred to in
            section 2006(e)(1) of this title.
                ``(7) The term `Fund' means the Reserve Mobilization Income
            Insurance Fund established by section 12528(a) of this title.

    ``Sec. 12522. Establishment of insurance program

        ``(a) Establishment.--The Secretary shall establish for members of
    the Ready Reserve (including the Coast Guard Reserve) an insurance
    program to be known as the `Ready Reserve Mobilization Income Insurance
    Program'.
        ``(b) Administration.--The insurance program shall be administered
    by the Secretary. The Secretary may prescribe in regulations such rules,
    procedures, and policies as the Secretary considers necessary or
    appropriate to carry out the insurance program.

    [[Page 110 STAT. 300]]

        ``(c) Agreement With Secretary of Transportation.--The Secretary and
    the Secretary of Transportation shall enter into an agreement with
    respect to the administration of the insurance program for the Coast
    Guard Reserve.

    ``Sec. 12523. Risk insured

        ``(a) In General.--The insurance program shall insure members of the
    Ready Reserve against the risk of being ordered into covered service.
        ``(b) Entitlement to Benefits.--(1) An insured member ordered into
    covered service shall be entitled to payment of a benefit for each month
    (and fraction thereof) of covered service that exceeds 30 days of
    covered service, except that no member may be paid under the insurance
    program for more than 12 months of covered service served during any
    period of 18 consecutive months.
        ``(2) Payment shall be based solely on the insured status of a
    member and on the period of covered service served by the member. Proof
    of loss of income or of expenses incurred as a result of covered service
    may not be required.

    ``Sec. 12524. Enrollment and election of benefits

        ``(a) Enrollment.--(1) Except as provided in subsection (f), upon
    first becoming a member of the Ready Reserve, a member shall be
    automatically enrolled for coverage under the insurance program. An
    automatic enrollment of a member shall be void if within 60 days after
    first becoming a member of the Ready Reserve the member declines
    insurance under the program in accordance with the regulations
    prescribed by the Secretary.
        ``(2) Promptly after the insurance program is established, the
    Secretary shall offer to members of the reserve components
    who are then members of the Ready Reserve (other than members ineligible
    under subsection (f)) an opportunity to enroll for coverage under the
    insurance program. A member who fails to enroll within 60 days after
    being offered the opportunity shall be considered as having declined to
    be insured under the program.

        ``(3) A member of the Ready Reserve ineligible to enroll under
    subsection (f) shall be afforded an opportunity to enroll upon being
    released from active duty in accordance with regulations prescribed by
    the Secretary if the member has not previously had the opportunity to be
    enrolled under paragraph (1) or (2). A member who fails to enroll within
    60 days after being afforded that opportunity shall be considered as
    having declined to be insured under the program.
        ``(b) Election of Benefit Amount.--The amount of a member's monthly
    benefit under an enrollment shall be the basic benefit under subsection
    (a) of section 12525 of this title unless the member elects a different
    benefit under subsection (b) of such section within 60 days after first
    becoming a member of the Ready Reserve or within 60 days after being
    offered the opportunity to enroll, as the case may be.
        ``(c) Elections Irrevocable.--(1) An election to decline insurance
    pursuant to paragraph (1) or (2) of subsection (a) is irrevocable.
        ``(2) The amount of coverage may not be increased after enrollment.
        ``(d) Election To Terminate.--A member may terminate an enrollment
    at any time.

    [[Page 110 STAT. 301]]

        ``(e) Information To Be Furnished.--The Secretary shall ensure that
    members referred to in subsection (a) are given a written explanation of
    the insurance program and are advised that they have the right to
    decline to be insured and, if not declined, to elect coverage for a
    reduced benefit or an enhanced benefit under subsection (b).
        ``(f) Members Ineligible To Enroll.--Members of the Ready Reserve
    serving on active duty (or full-time National Guard duty) are not
    eligible to enroll for coverage under the insurance program. The
    Secretary may define any additional category of members of the Ready
    Reserve to be excluded from eligibility to purchase insurance under this
    chapter.

    ``Sec. 12525. Benefit amounts

        ``(a) Basic Benefit.--The basic benefit for an insured member under
    the insurance program is $1,000 per month (as adjusted under subsection
    (d)).
        ``(b) Reduced and Enhanced Benefits.--Under the regulations
    prescribed by the Secretary, a person enrolled for coverage under the
    insurance program may elect--
                ``(1) a reduced coverage benefit equal to one-half the
            amount of the basic benefit; or
                ``(2) an enhanced benefit in the amount of $1,500, $2,000,
            $2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month (as
            adjusted under subsection (d)).

        ``(c) Amount for Partial Month.--The amount of insurance payable to
    an insured member for any period of covered service that is less than
    one month shall be determined by multiplying \1/30\ of the monthly
    benefit rate for the member by the number of days of the covered service
    served by the member during such period.
        ``(d) Adjustment of Amounts.--(1) The Secretary shall determine
    annually the effect of inflation on benefits and shall adjust the
    amounts set forth in subsections (a) and (b)(2) to maintain the constant
    dollar value of the benefit.
        ``(2) If the amount of a benefit as adjusted under paragraph (1) is
    not evenly divisible by $10, the amount shall be rounded to the nearest
    multiple of $10, except that an amount evenly divisible by $5 but not by
    $10 shall be rounded to the next lower amount that is evenly divisible
    by $10.

    ``Sec. 12526. Premiums

        ``(a) Establishment of Rates.--(1) The Secretary, in consultation
    with the Board of Actuaries, shall prescribe the premium rates for
    insurance under the insurance program.
        ``(2) The Secretary shall prescribe a fixed premium rate for each
    $1,000 of monthly insurance benefit. The premium amount shall be equal
    to the share of the cost attributable to insuring the member and shall
    be the same for all members of the Ready Reserve who are insured under
    the insurance program for the same benefit amount. The Secretary shall
    prescribe the rate on the basis of the best available estimate of risk
    and financial exposure, levels of subscription by members, and other
    relevant factors.
        ``(b) Level Premiums.--The premium rate prescribed for the first
    year of insurance coverage of an insured member shall be continued
    without change for subsequent years of insurance coverage, except that
    the Secretary, after consultation with the Board

    [[Page 110 STAT. 302]]

    of Actuaries, may adjust the premium rate in order to fund inflation-
    adjusted benefit increases on an actuarially sound basis.

    ``Sec. 12527. Payment of premiums

        ``(a) Methods of Payment.--(1) The monthly premium for coverage of a
    member under the insurance program shall be deducted and withheld from
    the insured member's pay for each month.
        ``(2) An insured member who does not receive pay on a monthly basis
    shall pay the Secretary directly the premium amount applicable for the
    level of benefits for which the member is insured.
        ``(b) Advance Pay for Premium.--The Secretary concerned may advance
    to an insured member the amount equal to the first insurance premium
    payment due under this chapter. The advance may be paid out of
    appropriations for military pay. An advance to a member shall be
    collected from the member either by deducting and withholding the amount
    from basic pay payable for the member or by collecting it from the
    member directly. No disbursing or certifying officer shall be
    responsible for any loss resulting from an advance under this
    subsection.
        ``(c) Premiums To Be Deposited in Fund.--Premium amounts deducted
    and withheld from the pay of insured members and premium amounts paid
    directly to the Secretary shall be credited monthly to the Fund.

    ``Sec. 12528. Reserve Mobilization Income Insurance Fund

        ``(a) Establishment.--There is established on the books of the
    Treasury a fund to be known as the `Reserve Mobilization Income
    Insurance Fund', which shall be administered by the Secretary of the
    Treasury. The Fund shall be used for the accumulation of funds in order
    to finance the liabilities of the insurance program on an actuarially
    sound basis.
        ``(b) Assets of Fund.--There shall be deposited into the Fund the
    following:
                ``(1) Premiums paid under section 12527 of this title.
                ``(2) Any amount appropriated to the Fund.
                ``(3) Any return on investment of the assets of the Fund.

        ``(c) Availability.--Amounts in the Fund shall be available for
    paying insurance benefits under the insurance program.
        ``(d) Investment of Assets of Fund.--The Secretary of the Treasury
    shall invest such portion of the Fund as is not in the judgment of the
    Secretary of Defense required to meet current liabilities. Such
    investments shall be in public debt securities with maturities suitable
    to the needs of the Fund, as determined by the Secretary of Defense, and
    bearing interest at rates determined by the Secretary of the Treasury,
    taking into consideration current market yields on outstanding
    marketable obligations of the United States of comparable maturities.
    The income on such investments shall be credited to the Fund.
        ``(e) Annual Accounting.--At the beginning of each fiscal year, the
    Secretary, in consultation with the Board of Actuaries and the Secretary
    of the Treasury, shall determine the following:
                ``(1) The projected amount of the premiums to be collected,
            investment earnings to be received, and any transfers or
            appropriations to be made for the Fund for that fiscal year.

    [[Page 110 STAT. 303]]

                ``(2) The amount for that fiscal year of any cumulative
            unfunded liability (including any negative amount or any gain to
            the Fund) resulting from payments of benefits.
                ``(3) The amount for that fiscal year (including any
            negative amount) of any cumulative actuarial gain or loss to the
            Fund.

    ``Sec. 12529. Board of Actuaries

        ``(a) Actuarial Responsibility.--The Board of Actuaries shall have
    the actuarial responsibility for the insurance program.
        ``(b) Valuations and Premium Recommendations.--The Board of
    Actuaries shall carry out periodic actuarial valuations of the benefits
    under the insurance program and determine a premium rate methodology for
    the Secretary to use in setting premium rates for the insurance program.
    The Board shall conduct the first valuation and determine a premium rate
    methodology not later than six months after the insurance program is
    established.
        ``(c) Effects of Changed Benefits.--If at the time of any actuarial
    valuation under subsection (b) there has been a change in benefits under
    the insurance program that has been made since the last such valuation
    and such change in benefits increases or decreases the present value of
    amounts payable from the Fund, the Board of Actuaries shall determine a
    premium rate methodology, and recommend to the Secretary a premium
    schedule, for the liquidation of any liability (or actuarial gain to the
    Fund) resulting from such change and any previous such changes so that
    the present value of the sum of the scheduled premium payments (or
    reduction in payments that would otherwise be made) equals the
    cumulative increase (or decrease) in the present value of such benefits.
        ``(d) Actuarial Gains or Losses.--If at the time of any such
    valuation the Board of Actuaries determines that there has been an
    actuarial gain or loss to the Fund as a result of changes in actuarial
    assumptions since the last valuation or as a result of any differences,
    between actual and expected experience since the last valuation, the
    Board shall recommend to the Secretary a premium rate schedule for the
    amortization of the cumulative gain or loss to the Fund resulting from
    such changes in assumptions and any previous such changes in assumptions
    or from the differences in actual and expected experience, respectively,
    through an increase or decrease in the payments that would otherwise be
    made to the Fund.
        ``(e) Insufficient Assets.--If at any time liabilities of the Fund
    exceed assets of the Fund as a result of members of the Ready Reserve
    being ordered to active duty as described in section 12521(2) of this
    title, and funds are unavailable to pay benefits completely, the
    Secretary shall request the President to submit to Congress a request
    for a special appropriation to cover the unfunded liability. If
    appropriations are not made to cover an unfunded liability in any fiscal
    year, the Secretary shall reduce the amount of the benefits paid under
    the insurance program to a total amount that does not exceed the assets
    of the Fund expected to accrue by the end of such fiscal year. Benefits
    that cannot be paid because of such a reduction shall be deferred and
    may be paid only after and to the extent that additional funds become
    available.
        ``(f) Definition of Present Value.--The Board of Actuaries shall
    define the term `present value' for purposes of this subsection.

    [[Page 110 STAT. 304]]

    ``Sec. 12530. Payment of benefits

        ``(a) Commencement of Payment.--An insured member who serves in
    excess of 30 days of covered service shall be paid the amount to which
    such member is entitled on a monthly basis beginning not later than one
    month after the 30th day of covered service.
        ``(b) <<NOTE: Regulations.>> Method of Payment.--The Secretary shall
    prescribe in the regulations the manner in which payments shall be made
    to the member or to a person designated in accordance with subsection
    (c).

        ``(c) Designated Recipients.--(1) A member may designate in writing
    another person (including a spouse, parent, or other person with an
    insurable interest, as determined in accordance with the regulations
    prescribed by the Secretary) to receive payments of insurance benefits
    under the insurance program.
        ``(2) A member may direct that payments of insurance benefits for a
    person designated under paragraph (1) be deposited with a bank or other
    financial institution to the credit of the designated person.
        ``(d) Recipients in Event of Death of Insured Member.--Any insurance
    payable under the insurance program on account of a deceased member's
    period of covered service shall be paid, upon the establishment of a
    valid claim, to the beneficiary or beneficiaries which the deceased
    member designated in writing. If no such designation has been made, the
    amount shall be payable in accordance with the laws of the State of the
    member's domicile.

    ``Sec. 12531. Purchase of insurance

        ``(a) Purchase Authorized.--The Secretary may, instead of or in
    addition to underwriting the insurance program through the Fund,
    purchase from one or more insurance companies a policy or policies of
    group insurance in order to provide the benefits required under this
    chapter. The Secretary may waive any requirement for full and open
    competition in order to purchase an insurance policy under this
    subsection.
        ``(b) Eligible Insurers.--In order to be eligible to sell insurance
    to the Secretary for purposes of subsection (a), an insurance company
    shall--
                ``(1) be licensed to issue insurance in each of the 50
            States and in the District of Columbia; and
                ``(2) as of the most recent December 31 for which
            information is available to the Secretary, have in effect at
            least one percent of the total amount of insurance that all such
            insurance companies have in effect in the United States.

        ``(c) Administrative Provisions.--(1) An insurance company that
    issues a policy for purposes of subsection (a) shall establish an
    administrative office at a place and under a name designated by the
    Secretary.

        ``(2) For the purposes of carrying out this chapter, the Secretary
    may use the facilities and services of any insurance company issuing any
    policy for purposes of subsection (a), may designate one such company as
    the representative of the other companies for such purposes, and may
    contract to pay a reasonable fee to the designated company for its
    services.
        ``(d) Reinsurance.--The Secretary shall arrange with each insurance
    company issuing any policy for purposes of subsection (a) to reinsure,
    under conditions approved by the Secretary, portions

    [[Page 110 STAT. 305]]

    of the total amount of the insurance under such policy or policies with
    such other insurance companies (which meet qualifying criteria
    prescribed by the Secretary) as may elect to participate in such
    reinsurance.
        ``(e) Termination.--The Secretary may at any time terminate any
    policy purchased under this section.
    ``Sec. 12532. Termination for nonpayment of premiums; forfeiture

        ``(a) Termination for Nonpayment.--The coverage of a member under
    the insurance program shall terminate without prior notice upon a
    failure of the member to make required monthly payments of premiums for
    two consecutive months. The Secretary may provide in the regulations for
    reinstatement of insurance coverage terminated under this subsection.
        ``(b) Forfeiture.--Any person convicted of mutiny, treason, spying,
    or desertion, or who refuses to perform service in the armed forces or
    refuses to wear the uniform of any of the armed forces shall forfeit all
    rights to insurance under this chapter.''.
        (2) The tables of chapters at the beginning of subtitle E, and at
    the beginning of part II of subtitle E, of title 10, United States Code,
    are amended by inserting after the item relating to chapter 1213 the
    following new item:

    ``1214. Ready Reserve Mobilization Income Insurance.............12521''.

        (b) <<NOTE: Federal Register, publication. 10 USC 12521
    note.>> Effective Date.--The insurance program provided for in chapter
    1214 of title 10, United States Code, as added by subsection (a), and
    the requirement for deductions and contributions for that program shall
    take effect on September 30, 1996, or on any earlier date declared by
    the Secretary and published in the Federal Register.
    SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR ARMY
                            AND AIR FORCE RESERVE COMPONENTS.

        (a) Requirement of Annual Authorization of End Strength.--(1)
    Section 115 of title 10, United States Code, is amended by adding at the
    end the following new subsection:
        ``(g) Congress shall authorize for each fiscal year the end strength
    for military technicians for each reserve component of the Army and Air
    Force. Funds available to the Department of Defense for any fiscal year
    may not be used for the pay of a military technician during that fiscal
    year unless the technician fills a position that is within the number of
    such positions authorized by law for that fiscal year for the reserve
    component of that technician. This subsection applies without regard to
    section 129 of this title.''.

        (2) <<NOTE: 10 USC 115 note.>> The amendment made by paragraph (1)
    does not apply with respect to fiscal year 1995.

        (b) <<NOTE: 10 USC 115 note.>> Authorization for Fiscal Years 1996
    and 1997.--For each of fiscal years 1996 and 1997, the minimum number of
    military technicians, as of the last day of that fiscal year, for the
    Army and the Air Force (notwithstanding section 129 of title 10, United
    States Code) shall be the following:
                (1) Army National Guard, 25,500.
                (2) Army Reserve, 6,630.
                (3) Air National Guard, 22,906.
                (4) Air Force Reserve, 9,802.

    [[Page 110 STAT. 306]]

        (c) Administration of Military Technician Program.--(1) Chapter 1007
    of title 10, United States Code, is amended by adding at the end the
    following new section:

    ``Sec. 10216. Military technicians

        ``(a) Priority for Management of Military Technicians.--(1) As a
    basis for making the annual request to Congress pursuant to section 115
    of this title for authorization of end strengths for military
    technicians of the Army and Air Force reserve components, the Secretary
    of Defense shall give priority to supporting authorizations for dual
    status military technicians in the following high-priority units and
    organizations:
                ``(A) Units of the Selected Reserve that are scheduled to
            deploy no later than 90 days after mobilization.
                ``(B) Units of the Selected Reserve that are or will deploy
            to relieve active duty peacetime operations tempo.
                ``(C) Those organizations with the primary mission of
            providing direct support surface and aviation maintenance for
            the reserve components of the Army and Air Force, to the extent
            that the military technicians in such units would mobilize and
            deploy in a skill that is compatible with their civilian
            position skill.

        ``(2) For each fiscal year, the Secretary of Defense shall, for the
    high-priority units and organizations referred to in paragraph (1), seek
    to achieve a programmed manning level for military technicians that is
    not less than 90 percent of the programmed manpower structure for those
    units and organizations for military technicians for that fiscal year.
        ``(3) Military technician authorizations and personnel in high-
    priority units and organizations specified in paragraph (1) shall be
    exempt from any requirement (imposed by law or otherwise) for reductions
    in Department of Defense civilian personnel and shall only be reduced as
    part of military force structure reductions.
        ``(b) Dual-Status Requirement.--The Secretary of Defense shall
    require the Secretary of the Army and the Secretary of the Air Force to
    establish as a condition of employment for each individual who is hired
    after the date of the enactment of this section as a military technician
    that the individual maintain membership in the Selected Reserve (so as
    to be a so-called `dual-status' technician) and shall require that the
    civilian and military position skill requirements of dual-status
    military technicians be compatible. No Department of Defense funds may
    be spent for compensation for any military technician hired after the
    date of the enactment of this section who
    is not a member of the Selected Reserve, except that compensation may be
    paid for up to six months following loss of membership in the Selected
    Reserve if such loss of membership was not due to the failure to meet
    military standards.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``10216. Military technicians.''.

        (d) Review of Reserve Component Management Headquarters.--(1) The
    Secretary of Defense shall, within six months after the date of the
    enactment of this Act, undertake steps to reduce, consolidate, and
    streamline management headquarters operations of the reserve components.
    As part of those steps, the Secretary shall identify those military
    technicians positions in such

    [[Page 110 STAT. 307]]

    headquarters operations that are excess to the requirements of those
    headquarters.
        (2) Of the military technicians positions that are identified under
    paragraph (1), the Secretary shall reallocate up to 95 percent of the
    annual funding required to support those positions for the purpose of
    creating new positions or filling existing positions in the high-
    priority units and activities specified in section 10216(a) of title 10,
    United States Code, as added by subsection (c).
        (e) Annual Defense Manpower Requirements Report.--Section 115a of
    title 10, United States Code, is amended by adding at the end the
    following new subsection:
        ``(h) In each such report, the Secretary shall include a separate
    report on the Army and Air Force military technician programs. The
    report shall include a presentation, shown by reserve component and
    shown both as of the end of the preceding fiscal year and for the next
    fiscal year, of the following:
                ``(1) The number of military technicians required to be
            employed (as specified in accordance with Department of Defense
            procedures), the number authorized to be employed under
            Department of Defense personnel procedures, and the number
            actually employed.
                ``(2) Within each of the numbers under paragraph (1)--
                        ``(A) the number applicable to a reserve component
                    management headquarter organization; and
                        ``(B) the number applicable to high-priority units
                    and organizations (as specified in section 10216(a) of
                    this title).
                ``(3) Within each of the numbers under paragraph (1), the
            numbers of military technicians who are not themselves members
            of a reserve component (so-called `single-status' technicians),
            with a further display of such numbers as specified in paragraph
            (2).''.
    SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO
                            INCLUDE ARMY RESERVE UNDER CERTAIN
                            PROVISIONS AND MAKE CERTAIN REVISIONS.

        (a) Prior Active Duty Personnel.--Section 1111 of the Army National
    Guard Combat Readiness Reform Act of 1992 (title XI of Public Law 102-
    484) <<NOTE: 10 USC 10105 note.>> is amended--
                (1) in the section heading, by striking out the first three
            words;
                (2) by striking out subsections (a) and (b) and inserting in
            lieu thereof the following:

        ``(a) Additional Prior Active Duty Officers.--The Secretary of the
    Army shall increase the number of qualified prior active-duty officers
    in the Army National Guard by providing a program that permits the
    separation of officers on active duty with at least two, but less than
    three, years of active service upon condition that the officer is
    accepted for appointment in the Army National Guard. The Secretary shall
    have a goal of having not fewer than 150 officers become members of the
    Army National Guard each year under this section.
        ``(b) Additional Prior Active Duty Enlisted Members.--The Secretary
    of the Army shall increase the number of qualified prior active-duty
    enlisted members in the Army National Guard through the use of
    enlistments as described in section 8020 of the Department of Defense
    Appropriations Act, 1994 (Public Law 103-139). The Secretary shall
    enlist not fewer than 1,000 new

    [[Page 110 STAT. 308]]

    enlisted members each year under enlistments described in that
    section.''; and
                (3) by striking out subsections (d) and (e).

        (b) <<NOTE: 10 USC 10105 note.>> Service in the Selected Reserve in
    Lieu of Active Duty Service for ROTC Graduates.--Section 1112(b) of such
    Act (106 Stat. 2537) is amended by striking out ``National Guard''
    before the period at the end and inserting in lieu thereof ``Selected
    Reserve''.

        (c) <<NOTE: 10 USC 10105 note.>> Review of Officer Promotions.--
    Section 1113 of such Act (106 Stat. 2537) is amended--
                (1) in subsection (a), by striking out ``National Guard''
            both places it appears and inserting in lieu thereof ``Selected
            Reserve''; and
                (2) by striking out subsection (b) and inserting in lieu
            thereof the following:

        ``(b) Coverage of Selected Reserve Combat and Early Deploying
    Units.--(1) Subsection (a) applies to officers in all units of the
    Selected Reserve that are designated as combat units or that are
    designated for deployment within 75 days of mobilization.
        ``(2) <<NOTE: Effective date.>> Subsection (a) shall take effect
    with respect to officers of the Army Reserve, and with respect to
    officers of the Army National Guard in units not subject to subsection
    (a) as of the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 1996, at the end of the 90-day period
    beginning on such date of enactment.''.

        (d) <<NOTE: 10 USC 10105 note.>> Initial Entry Training and
    Nondeployable Personnel.--Section 1115 of such Act (106 Stat. 2538) is
    amended--
                (1) in subsections (a) and (b), by striking out ``National
            Guard'' each place it appears and inserting in lieu thereof
            ``Selected Reserve''; and
                (2) in subsection (c)--
                        (A) by striking out ``a member of the Army National
                    Guard enters the National Guard'' and inserting
    in lieu thereof ``a member of the Army Selected Reserve enters the Army
    Selected Reserve''; and
                        (B) by striking out ``from the Army National
                    Guard''.

        (e) <<NOTE: 10 USC 10105 note.>> Accounting of Members Who Fail
    Physical Deployability Standards.--Section 1116 of such Act (106 Stat.
    2539) is amended by striking out ``National Guard'' each place it
    appears and inserting in lieu thereof ``Selected Reserve''.

        (f) Use of Combat Simulators.--Section 1120 of such Act (106 Stat.
    2539) is amended by inserting ``and the Army Reserve'' before the period
    at the end.

    SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

        (a) <<NOTE: 10 USC 10105 note.>> Associate Units.--Subsection (a) of
    section 1131 of the National Defense Authorization Act for Fiscal Year
    1993 (Public Law 102-484; 106 Stat. 2540) is amended to read as follows:

        ``(a) Associate Units.--The Secretary of the Army shall require--
                ``(1) that each ground combat maneuver brigade of the Army
            National Guard that (as determined by the Secretary) is
            essential for the execution of the National Military Strategy be
            associated with an active-duty combat unit; and
                ``(2) that combat support and combat service support units
            of the Army Selected Reserve that (as determined by the Sec

    [[Page 110 STAT. 309]]

            retary) are essential for the execution of the National Military
            Strategy be associated with active-duty units.''.

        (b)  Responsibilities.--Subsection  (b)  of  such  section  is
    amended--
                (1) by striking out ``National Guard combat unit'' in the
            matter preceding paragraph (1) and inserting in lieu thereof
            ``National Guard unit or Army Selected Reserve unit that (as
            determined by the Secretary under subsection (a)) is essential
            for the execution of the National Military Strategy''; and
                (2) by striking out ``of the National Guard unit'' in
            paragraphs (1), (2), (3), and (4) and inserting in lieu thereof
            ``of that unit''.
    SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS PERFORMING
                            PUBLIC SAFETY DUTY.

        (a) Election of Leave To Be Charged.--Subsection (b) of section 6323
    of title 5, United States Code, is amended by adding at the end the
    following: ``Upon the request of an employee, the period for which an
    employee is absent to perform service described in paragraph (2) may be
    charged to the employee's accrued annual leave or to compensatory time
    available to the employee instead of being charged as leave to which the
    employee is entitled under this subsection. The period of absence may
    not be charged to sick leave.''.
        (b) Pay for Period of Absence.--Section 5519 of such title is
    amended by striking out ``entitled to leave'' and inserting in lieu
    thereof ``granted military leave''.
    SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL GUARD
                            PARTICIPATION IN JOINT DISASTER AND
                            EMERGENCY ASSISTANCE EXERCISES.

        Section 503(a) of title 32, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following:

        ``(2) Paragraph (1) includes authority to provide for participation
    of the National Guard in conjunction with the Army or the Air Force, or
    both, in joint exercises for instruction to prepare the National Guard
    for response to civil emergencies and disasters.''.

                       Subtitle C--Decorations and Awards

    SEC. 521. <<NOTE: 10 USC 1129 note.>>  AWARD OF PURPLE HEART TO
                            PERSONS WOUNDED WHILE HELD AS PRISONERS OF
                            WAR BEFORE APRIL 25, 1962.

        (a) Award of Purple Heart.--For purposes of the award of the Purple
    Heart, the Secretary concerned (as defined in section 101 of title 10,
    United States Code) shall treat a former prisoner of war who was wounded
    before April 25, 1962, while held as a prisoner of war (or while being
    taken captive) in the same manner as a former prisoner of war who is
    wounded on or after that date while held as a prisoner of war (or while
    being taken captive).
        (b) Standards for Award.--An award of the Purple Heart under
    subsection (a) shall be made in accordance with the standards in effect
    on the date of the enactment of this Act for the award of the Purple
    Heart to persons wounded on or after April 25, 1962.
        (c) Eligible Former Prisoners of War.--A person shall be considered
    to be a former prisoner of war for purposes of this

    [[Page 110 STAT. 310]]

    section if the person is eligible for the prisoner-of-war medal under
    section 1128 of title 10, United States Code.
    SEC. 522. <<NOTE: 10 USC 1130 note.>>  AUTHORITY TO AWARD
                            DECORATIONS RECOGNIZING ACTS OF VALOR
                            PERFORMED IN COMBAT DURING THE VIETNAM
                            CONFLICT.

        (a) Findings.--Congress makes the following findings:
                (1) The Ia Drang Valley (Pleiku) campaign, carried out by
            the Armed Forces in the Ia Drang Valley of Vietnam from October
            23, 1965, to November 26, 1965, is illustrative of the many
            battles during the Vietnam conflict which pitted forces of the
            United States against North Vietnamese Army regulars and Viet
            Cong in vicious fighting.
                (2) Accounts of those battles that have been published since
            the end of that conflict authoritatively document numerous and
            repeated acts of extraordinary heroism, sacrifice, and bravery
            on the part of members of the Armed Forces, many of which have
            never been officially recognized.
                (3) In some of those battles, United States military units
            suffered substantial losses, with some units sustaining
            casualties in excess of 50 percent.
                (4) The incidence of heavy casualties throughout the Vietnam
            conflict inhibited the timely collection of comprehensive and
            detailed information to support recommendations for awards
            recognizing acts of heroism, sacrifice, and bravery.
                (5) Subsequent requests to the Secretaries of the military
            departments for review of award recommendations for such acts
            have been denied because of restrictions in law and regulations
            that require timely filing of such recommendations and
            documented justification.
                (6) Acts of heroism, sacrifice, and bravery performed in
            combat by members of the Armed Forces deserve appropriate and
            timely recognition by the people of the United States.
                (7) It is appropriate to recognize acts of heroism,
            sacrifice, or bravery that are belatedly, but properly,
            documented by persons who witnessed those acts.

        (b) Waiver of Time Limitations for Recommendations for Awards.--(1)
    Any decoration covered by paragraph (2) may be awarded, without regard
    to any time limit imposed by law or regulation for a recommendation for
    such award to any person for actions by that person in the Southeast
    Asia theater of operations while serving on active duty during the
    Vietnam era. The waiver of time limitations under this paragraph applies
    only in the case of awards for acts of valor for which a request for
    consideration is submitted under subsection (c).
        (2) Paragraph (1) applies to any decoration (including any device in
    lieu of a decoration) that, during or after the Vietnam era and before
    the date of the enactment of this Act, was authorized by law or under
    regulations of the Department of Defense or the military department
    concerned to be awarded to members of the Armed Forces for acts of
    valor.
        (c) Review of Requests for Consideration of Awards.--(1) The
    Secretary of each military department shall review each request for
    consideration of award of a decoration described in subsection (b) that
    are received by the Secretary during the one-year period beginning on
    the date of enactment of this Act.

    [[Page 110 STAT. 311]]

        (2) The Secretaries shall begin the review within 30 days after the
    date of the enactment of this Act and shall complete the review of each
    request for consideration not later than one year after the date on
    which the request is received.
        (3) The Secretary may use the same process for carrying out the
    review as the Secretary uses for reviewing other recommendations for
    award of decorations to members of the Armed Forces under the
    Secretary's jurisdiction for valorous acts.
        (d) Report.--(1) Upon completing the review of each such request
    under subsection (c), the Secretary shall submit a report on the review
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives.
        (2) The report shall include, with respect to each request for
    consideration received, the following information:
                (A) A summary of the request for consideration.
                (B) The findings resulting from the review.
                (C) The final action taken on the request for consideration.

        (e) Definition.--For purposes of this section:
                (1) The term ``Vietnam era'' has the meaning given that term
            in section 101 of title 38, United States Code.
                (2) The term ``active duty'' has the meaning given that term
            in section 101 of title 10, United States Code.
    SEC. 523.  <<NOTE: 10 USC 1130 note.>> MILITARY INTELLIGENCE
                            PERSONNEL PREVENTED BY SECRECY FROM BEING
                            CONSIDERED FOR DECORATIONS AND AWARDS.

        (a) Waiver on Restrictions of Awards.--(1) Any decoration covered by
    paragraph (2) may be awarded, without regard to any time limit imposed
    by law or regulation for a recommendation for such award, to any person
    for an act, achievement, or service that the person performed in
    carrying out military intelligence duties during the period beginning on
    January 1, 1940, and ending on December 31, 1990.
        (2) Paragraph (1) applies to any decoration (including any device in
    lieu of a decoration) that, during or after the period described in
    paragraph (1) and before the date of the enactment of this Act, was
    authorized by law or under the regulations of the Department of Defense
    or the military department concerned to be awarded to a person for an
    act, achievement, or service performed by that person while serving on
    active duty.
        (b) Review of Requests for Consideration of Awards.--(1) The
    Secretary of each military department shall review each request for
    consideration of award of a decoration described in subsection (a) that
    is received by the Secretary during the one-year period beginning on the
    date of the enactment of this Act.
        (2) The Secretaries shall begin the review within 30 days after the
    date of the enactment of this Act and shall complete the review of each
    request for consideration not later than one year after the date on
    which the request is received.
        (3) The Secretary may use the same process for carrying out the
    review as the Secretary uses for reviewing other recommendations for
    awarding decorations to members of the Armed Forces under the
    Secretary's jurisdiction for acts, achievements, or service.
        (c) Report.--(1) Upon completing the review of each such request
    under subsection (b), the Secretary shall submit a report on the review
    to the Committee on Armed Services of the Senate

    [[Page 110 STAT. 312]]

    and the Committee on National Security of the House of Representatives.
        (2) The report shall include, with respect to each request for
    consideration reviewed, the following information:
                (A) A summary of the request for consideration.
                (B) The findings resulting from the review.
                (C) The final action taken on the request for consideration.
                (D) Administrative or legislative recommendations to improve
            award procedures with respect to military intelligence
            personnel.

        (d) Definition.--For purposes of this section, the term ``active
    duty'' has the meaning given such term in section 101 of title 10,
    United States Code.
    SEC. 524.  <<NOTE: Records. 10 USC 3741 note.>> REVIEW REGARDING
                            UPGRADING OF DISTINGUISHED-SERVICE CROSSES
                            AND NAVY CROSSES AWARDED TO ASIAN-
                            AMERICANS AND NATIVE AMERICAN PACIFIC
                            ISLANDERS FOR WORLD WAR II SERVICE.

        (a) Review Required.--(1) The Secretary of the Army shall review the
    records relating to each award of the Distinguished-Service Cross, and
    the Secretary of the Navy shall review the records relating to each
    award of the Navy Cross, that was awarded to an Asian-American or a
    Native American Pacific Islander with respect to service as a member of
    the Armed Forces during World War II. The purpose of the review shall be
    to determine whether any such award should be upgraded to the Medal of
    Honor.
        (2) If the Secretary concerned determines, based upon the review
    under paragraph (1), that such an upgrade is appropriate in the case of
    any person, the Secretary shall submit to the President a recommendation
    that the President award the Medal of Honor to that person.
        (b) Waiver of Time Limitations.--A Medal of Honor may be awarded to
    a person referred to in subsection (a) in accordance with a
    recommendation of the Secretary concerned under that subsection without
    regard to--
                (1) section 3744, 6248, or 8744 of title 10, United States
            Code, as applicable; and
                (2) any regulation or other administrative restriction on--
                        (A) the time for awarding the Medal of Honor; or
                        (B) the awarding of the Medal of Honor for service
                    for which a Distinguished-Service Cross or Navy Cross
                    has been awarded.

        (c) Definition.--For purposes of this section, the term ``Native
    American Pacific Islander'' means a Native Hawaiian and any other Native
    American Pacific Islander within the
    meaning of the Native American Programs Act of 1974 (42 U.S.C. 2991 et
    seq.).
    SEC. 525.  <<NOTE: 10 USC 1130 note.>> ELIGIBILITY FOR ARMED
                            FORCES EXPEDITIONARY MEDAL BASED UPON
                            SERVICE IN EL SALVADOR.

        (a) In General.--For the purpose of determining eligibility of
    members and former members of the Armed Forces for the Armed Forces
    Expeditionary Medal, the country of El Salvador during the period
    beginning on January 1, 1981 and ending on February 1, 1992, shall be
    treated as having been designated as an area and a period of time in
    which members of the Armed Forces participated in operations in
    significant numbers and otherwise met the general requirements for the
    award of that medal.

    [[Page 110 STAT. 313]]

        (b) Individual Determination.--The Secretary of the military
    department concerned shall determine whether individual members or
    former members of the Armed Forces who served in El Salvador during the
    period beginning on January 1, 1981 and ending on February 1, 1992 meet
    the individual service requirements for award of the Armed Forces
    Expeditionary Medal as established in applicable regulations. Such
    determinations shall be made as expeditiously as possible after the date
    of the enactment of this Act.
    SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS NOT
                            PREVIOUSLY SUBMITTED IN TIMELY FASHION.

        (a) In General.--Chapter 57 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 1130. Consideration of proposals for decorations not
                        previously submitted in timely fashion:
                        procedures for review and recommendation

        ``(a) Upon request of a Member of Congress, the Secretary concerned
    shall review a proposal for the award or presentation of a decoration
    (or the upgrading of a decoration), either for an individual or a unit,
    that is not otherwise authorized to be presented or awarded due to
    limitations established by law or policy for timely submission of a
    recommendation for such award or presentation. Based upon such review,
    the Secretary shall make a determination as to the merits of approving
    the award or presentation of the decoration and the other determinations
    necessary to comply with subsection (b).
        ``(b) Upon making a determination under subsection (a) as to the
    merits of approving the award or presentation of the decoration, the
    Secretary concerned shall submit to the Committee on Armed Services of
    the Senate and the Committee on National Security of the House of
    Representatives and to the requesting member of Congress notice in
    writing of one of the following:
                ``(1) The award or presentation of the decoration does not
            warrant approval on the merits.
                ``(2) The award or presentation of the decoration warrants
            approval and a waiver by law of time restrictions prescribed by
            law is recommended.
                ``(3) The award or presentation of the decoration warrants
            approval on the merits and has been approved as an exception to
            policy.
                ``(4) The award or presentation of the decoration warrants
            approval on the merits, but a waiver of the time restrictions
            prescribed by law or policy is not recommended.

    A notice under paragraph (1) or (4) shall be accompanied by a statement
    of the reasons for the decision of the Secretary.

        ``(c) Determinations under this section regarding the award or
    presentation of a decoration shall be made in accordance with the same
    procedures that apply to the approval or disapproval of the award or
    presentation of a decoration when a recommendation for such award or
    presentation is submitted in a timely manner as prescribed by law or
    regulation.
        ``(d) In this section:
                ``(1) The term `Member of Congress' means--
                        ``(A) a Senator; or

    [[Page 110 STAT. 314]]

                        ``(B) a Representative in, or a Delegate or Resident
                    Commissioner to, Congress.
                ``(2) The term `decoration' means any decoration or award
            that may be presented or awarded to a member or unit of the
            armed forces.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``1130. Consideration of proposals for decorations not previously
               submitted in timely fashion: procedures for review and
               recommendation.''.

                     Subtitle D--Officer Education Programs

                            PART I--SERVICE ACADEMIES

    SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF THE
                            SERVICE ACADEMIES.

        (a) Military Academy.--Section 4348(a)(2)(B) of title 10, United
    States Code, is amended by striking out ``six years'' and inserting in
    lieu thereof ``five years''.
        (b) Naval Academy.--Section 6959(a)(2)(B) of such title is amended
    by striking out ``six years'' and inserting in lieu thereof ``five
    years''.
        (c) Air Force Academy.--Section 9348(a)(2)(B) of such title is
    amended by striking out ``six years'' and inserting in lieu thereof
    ``five years''.
        (d) Requirement for Review and Report.--(1) The Secretary of Defense
    shall review the effects that each of various periods of obligated
    active duty service for graduates of the United States Military Academy,
    the United States Naval Academy, and the United States Air Force Academy
    would have on the number and quality of the eligible and qualified
    applicants seeking appointment to such academies.
        (2) Not later than April 1, 1996, the Secretary shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a report on the Secretary's
    findings under the review, together with any recommended legislation
    regarding the minimum periods of obligated active duty service for
    graduates of the United States Military Academy, the United States Naval
    Academy, and the United States Air Force Academy.

        (e) <<NOTE: 10 USC 4348 note.>> Applicability.--The amendments made
    by this section apply to persons first admitted to the United States
    Military Academy, United States Naval Academy, and United States Air
    Force Academy after December 31, 1991.
    SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH OF
                            THE NORTHERN MARIANAS ISLANDS.

        (a) Military Academy.--Section 4342(a) of title 10, United States
    Code, is amended by inserting after paragraph (9) the following new
    paragraph:
                ``(10) One cadet from the Commonwealth of the Northern
            Marianas Islands, nominated by the resident representative from
            the commonwealth.''.

        (b) Naval Academy.--Section 6954(a) of title 10, United States Code,
    is amended by inserting after paragraph (9) the following new paragraph:

    [[Page 110 STAT. 315]]

                ``(10) One from the Commonwealth of the Northern Marianas
            Islands, nominated by the resident representative from the
            commonwealth.''.

        (c) Air Force Academy.--Section 9342(a) of title 10, United States
    Code, is amended by inserting after paragraph (9) the following new
    paragraph:
                ``(10) One cadet from the Commonwealth of the Northern
            Marianas Islands, nominated by the resident representative from
            the commonwealth.''.
    SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND
                            NONAPPROPRIATED FUND ACCOUNT FOR THE
                            ATHLETICS PROGRAMS AT THE SERVICE
                            ACADEMIES.

        (a) United States Military Academy.--(1) Section 4357 of title 10,
    United States Code, is repealed.
        (2) The table of sections at the beginning of chapter 403 of such
    title is amended by striking out the item relating to section 4357.
        (b) United States Naval Academy.--Section 556 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 2774) is amended by striking out subsections (b) and
    (e). <<NOTE: 10 USC 6975, 6975 note.>>

        (c) United States Air Force Academy.--(1) Section 9356 of title 10,
    United States Code, is repealed.
        (2) The table of sections at the beginning of chapter 903 of such
    title is amended by striking out the item relating to section 9356.
    SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST PRIVATIZATION
                            OF SERVICE ACADEMY PREPARATORY SCHOOLS.

        Section 536 of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 10 U.S.C. 4331 note) is repealed.

                     PART II--RESERVE OFFICER TRAINING CORPS

    SEC. 541. ROTC ACCESS TO CAMPUSES.

        (a) In General.--Chapter 49 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 983. Institutions of higher education that prohibit Senior ROTC
                            units: denial of Department of Defense grants
                            and contracts

        ``(a) Denial of Department of Defense Grants and Contracts.--(1) No
    funds appropriated or otherwise available to the Department of Defense
    may be made obligated by contract or by grant (including a grant of
    funds to be available for student aid) to any institution of higher
    education that, as determined by the Secretary of Defense, has an anti-
    ROTC policy and at which, as determined by the Secretary, the Secretary
    would otherwise maintain or seek to establish a unit of the Senior
    Reserve Officer Training Corps or at which the Secretary would otherwise
    enroll or seek to enroll students for participation in a unit of the
    Senior Reserve Officer Training Corps at another nearby institution of
    higher education.
        ``(2) In the case of an institution of higher education that is
    ineligible for Department of Defense grants and contracts by reason of
    paragraph (1), the prohibition under that paragraph shall

    [[Page 110 STAT. 316]]

    cease to apply to that institution upon a determination by the Secretary
    that the institution no longer has an anti-ROTC policy.
        ``(b) Notice of Determination.--Whenever the Secretary makes a
    determination under subsection (a) that an institution has an anti-ROTC
    policy, or that an institution previously determined to have an anti-
    ROTC policy no longer has such a policy, the Secretary--
                ``(1) shall transmit notice of that determination to the
            Secretary of Education and to the Committee on Armed Services of
            the Senate and the Committee on National Security of the House
            of Representatives; and
                ``(2) <<NOTE: Federal Register, publication.>> shall publish
            in the Federal Register notice of that determination and of the
            effect of that determination under subsection (a)(1) on the
            eligibility of that institution for Department of Defense grants
            and contracts.

        ``(c) Semiannual Notice in Federal Register.--The Secretary shall
    publish in the Federal Register once every six months a list of each
    institution of higher education that is currently ineligible for
    Department of Defense grants and contracts by reason of a determination
    of the Secretary under subsection (a).
        ``(d) Anti-ROTC Policy.--In this section, the term `anti-ROTC
    policy' means a policy or practice of an institution of higher education
    that--
                ``(1) prohibits, or in effect prevents, the Secretary of
            Defense from maintaining or establishing a unit of the Senior
            Reserve Officer Training Corps at that institution, or
                ``(2) prohibits, or in effect prevents, a student at that
            institution from enrolling in a unit of the Senior Reserve
            Officer Training Corps at another institution of higher
            education.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``983. Institutions of higher education that prohibit Senior ROTC units:
               denial of Department of Defense grants and contracts.''.

    SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

        (a) Clarification of Restriction on Active Duty.--Paragraph (2) of
    section 2107(h) of title 10, United States Code, is amended by inserting
    ``full-time'' before ``active duty'' in the second sentence.
        (b) Redesignation of ROTC Scholarships.--Such paragraph is further
    amended by inserting after the first sentence the following new
    sentence: ``A cadet designated under this paragraph who, having
    initially contracted for service as provided in subsection (b)(5)(A) and
    having received financial assistance for two years under an award
    providing for four years of financial assistance under this section,
    modifies such contract with the consent of the Secretary of the Army to
    provide for service as described in subsection (b)(5)(B), may be
    counted, for the year in which the contract is modified, toward the
    number of appointments required under the preceding sentence for
    financial assistance awarded for a period of four years.''.
    SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL
                            HEADQUARTERS STRUCTURE.

        (a) Delay.--The Secretary of the Army may not take any action to
    reorganize the regional headquarters and basic camp structure of the
    Reserve Officers Training Corps program of the

    [[Page 110 STAT. 317]]

    Army until six months after the date on which the report required by
    subsection (d) is submitted.
        (b) Cost-Benefit Analysis.--The Secretary of the Army shall conduct
    a comparative cost-benefit analysis of various options for the
    reorganization of the regional headquarters and basic camp structure of
    the Army ROTC program. As part of such analysis, the Secretary shall
    measure each reorganization option considered against a common set of
    criteria.
        (c) Selection of Reorganization Option for Implementation.--Based on
    the findings resulting from the cost-benefit analysis under subsection
    (b) and such other factors as the Secretary considers appropriate, the
    Secretary shall select one reorganization option for implementation. The
    Secretary may select an option for implementation only if the Secretary
    finds that the cost-benefit analysis and other factors considered
    clearly demonstrate that such option, better than any other option
    considered--
                (1) provides the structure to meet projected mission
            requirements;
                (2) achieves the most significant personnel and cost
            savings;
                (3) uses existing basic and advanced camp facilities to the
            maximum extent possible;
                (4) minimizes additional military construction costs; and
                (5) makes maximum use of the reserve components to support
            basic and advanced camp operations, thereby minimizing the
            effect of those operations on active duty units.

        (d) Report.--Not later than 60 days after the date of the enactment
    of this Act, the Secretary of the Army shall submit to the Committee on
    Armed Services of the Senate and the Committee on National Security of
    the House of Representatives a report describing the reorganization
    option selected under subsection (c). The report shall include the
    results of the cost-benefit analysis under subsection (b) and a detailed
    rationale for the reorganization option selected.
    SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE REQUIRED
                            UNDER THE SENIOR RESERVE OFFICERS'
                            TRAINING CORPS PROGRAM.

        Section 2104(b)(6)(A)(ii) of title 10, United States Code, is
    amended by striking out ``not less than six weeks' duration'' and
    inserting in lieu thereof ``a duration''.
    SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SENIOR
                            MILITARY COLLEGES TO SERVE AS COMMANDANT
                            AND ASSISTANT COMMANDANT OF CADETS AND AS
                            TACTICAL OFFICERS.

        (a) In General.--Chapter 103 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 2111a. Detail of officers to senior military colleges

        ``(a) Detail of Officers To Serve as Commandant or Assistant
    Commandant of Cadets.--(1) Upon the request of a senior military
    college, the Secretary of Defense may detail an officer on the active-
    duty list to serve as Commandant of Cadets at that college or (in the
    case of a college with an Assistant Commandant of Cadets) detail an
    officer on the active-duty list to serve as Assistant Commandant of
    Cadets at that college (but not both).
        ``(2) In the case of an officer detailed as Commandant of Cadets,
    the officer may, upon the request of the college, be assigned from

    [[Page 110 STAT. 318]]

    among the Professor of Military Science, the Professor of Naval Science
    (if any), and the Professor of Aerospace Science (if any) at that
    college or may be in addition to any other officer detailed to that
    college in support of the program.
        ``(3) In the case of an officer detailed as Assistant Commandant of
    Cadets, the officer may, upon the request of the college, be assigned
    from among officers otherwise detailed to duty at that college in
    support of the program or may be in addition to any other officer
    detailed to that college in support of the program.
        ``(b) Designation of Officers as Tactical Officers.--Upon the
    request of a senior military college, the Secretary of Defense may
    authorize officers (other than officers covered by subsection (a)) who
    are detailed to duty as instructors at that college to act
    simultaneously as tactical officers (with or without compensation) for
    the Corps of Cadets at that college.
        ``(c) Detail of Officers.--The Secretary of a military department
    shall designate officers for detail to the program at a senior military
    college in accordance with criteria provided by the college. An officer
    may not be detailed to a senior military college without the approval of
    that college.
        ``(d) Senior Military Colleges.--The senior military colleges are
    the following:
                ``(1) Texas A&M University.
                ``(2) Norwich College.
                ``(3) The Virginia Military Institute.
                ``(4) The Citadel.
                ``(5) Virginia Polytechnic Institute and State University.
                ``(6) North Georgia College.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2111a. Detail of officers to senior military colleges.''.

             Subtitle E--Miscellaneous Reviews, Studies, and Reports

    SEC. 551.  <<NOTE: 10 USC 113 note.>> REPORT CONCERNING
                            APPROPRIATE FORUM FOR JUDICIAL REVIEW OF
                            DEPARTMENT OF DEFENSE PERSONNEL ACTIONS.

        (a) Establishment.--The Secretary of Defense shall establish an
    advisory committee to consider issues relating to the appropriate forum
    for judicial review of Department of Defense administrative personnel
    actions.
        (b) Membership.--(1) The committee shall be composed of five
    members, who shall be appointed by the Secretary of Defense after
    consultation with the Attorney General and the Chief Justice of the
    United States.
        (2) All members of the committee shall be appointed not later than
    30 days after the date of the enactment of this Act.
        (c) Duties.--The committee shall review, and provide findings and
    recommendations regarding, the following matters with respect to
    judicial review of administrative personnel actions of the Department of
    Defense:

    [[Page 110 STAT. 319]]

                (1) Whether the existing forum for such review through the
            United States district courts provides appropriate and adequate
            review of such actions.
                (2) Whether jurisdiction to conduct judicial review of such
            actions should be established in a single court in order to
            provide a centralized review of such actions and, if so, in
            which court that jurisdiction should be vested.

        (d) Report.--(1) Not later than December 15, 1996, the committee
    shall submit to the Secretary of Defense a report setting forth its
    findings and recommendations, including its recommendations pursuant to
    subsection (c).
        (2) Not later than January 1, 1997, the Secretary of Defense, after
    consultation with the Attorney General, shall transmit the committee's
    report to Congress. The Secretary may include in the transmittal any
    comments on the report that the Secretary or the Attorney General
    consider appropriate.
        (e) Termination of Committee.--The committee shall terminate 30 days
    after the date of the submission of its report to Congress under
    subsection (d)(2).
    SEC. 552.  <<NOTE: 10 USC 115 note.>> COMPTROLLER GENERAL REVIEW
                            OF PROPOSED ARMY END STRENGTH ALLOCATIONS.

        (a) In General.--During fiscal years 1996 through 2001, the
    Comptroller General of the United States shall analyze the plans of the
    Secretary of the Army for the allocation of assigned active component
    end strengths for the Army through the requirements process known as
    Total Army Analysis 2003 and through any subsequent similar requirements
    process of the Army that is conducted before 2002. The Comptroller
    General's analysis shall consider whether the proposed active component
    end strengths and planned allocation of forces for that period will be
    sufficient to implement the national military strategy. In monitoring
    those plans, the Comptroller General shall determine the extent to which
    the Army will be able during that period--
                (1) to man fully the combat force based on the projected
            active component Army end strength for each of fiscal years 1996
            through 2001;
                (2) to meet the support requirements for the force and
            strategy specified in the report of the Bottom-Up Review,
            including requirements for operations other than war; and
                (3) to streamline further Army infrastructure in order to
            eliminate duplication and inefficiencies and replace active duty
            personnel in overhead positions, whenever practicable, with
            civilian or reserve personnel.

        (b) Access to Documents, Etc.--The Secretary of the Army shall
    ensure that the Comptroller General is provided access, on a timely
    basis and in accordance with the needs of the Comptroller General, to
    all analyses, models, memoranda, reports, and other documents prepared
    or used in connection with the requirements process of the Army known as
    Total Army Analysis 2003 and any subsequent similar requirements process
    of the Army that is conducted before 2002.
        (c) Annual Report.--Not later than March 1 of each year through
    2002, the Comptroller General shall submit to Congress a report on the
    findings and conclusions of the Comptroller General under this section.

    [[Page 110 STAT. 320]]

    SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE SUPPORT
                            UNITS.

        (a) Report.--Not later than September 30, 1996, 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 units of the Armed Forces under the Secretary's
    jurisdiction--
                (1) that (as determined by the Secretary of the military
            department concerned) are high-priority support units that would
            deploy early in a contingency operation or other crisis; and
                (2) that are, as a matter of policy, managed at less than
            100 percent of their authorized strengths.

        (b) Matters To Be Included.--The Secretary shall include in the
    report--
                (1) the number of such high-priority support units (shown by
            type of unit) that are so managed;
                (2) the level of manning within such high-priority support
            units; and
                (3) with respect to each such unit, either the justification
            for manning of less than 100 percent or the status of corrective
            action.
    SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY RECORDS.

        (a) Review of Procedures.--The Secretary of Defense shall review the
    system and procedures for the correction of military records used by the
    Secretaries of the military departments in the exercise of authority
    under section 1552 of title 10, United States Code, in order to identify
    potential improvements that could be made in the process for correcting
    military records to ensure fairness, equity, and (consistent with
    appropriate service to applicants) maximum efficiency. The Secretary may
    not delegate responsibility for the review to an officer or official of
    a military department.
        (b) Issues Reviewed.--In conducting the review, the Secretary shall
    consider (with respect to each Board for the Correction of Military
    Records) the following:
                (1) The composition of the board and of the support staff
            for the board.
                (2) Timeliness of final action.
                (3) Independence of deliberations by the civilian board.
                (4) The authority of the Secretary of the military
            department concerned to modify the recommendations of the board.
                (5) Burden of proof and other evidentiary standards.
                (6) Alternative methods for correcting military records.
                (7) Whether the board should be consolidated with the
            Discharge Review Board of the military department.

        (c) Report.--Not later than April 1, 1996, the Secretary of Defense
    shall submit a report on the results of the Secretary's review under
    this section to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives. The
    report shall contain the recommendations of the Secretary for improving
    the process for correcting military records in order to achieve the
    objectives referred to in subsection (a).

    [[Page 110 STAT. 321]]

    SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF FINGERPRINT
                            CARDS AND FINAL DISPOSITION FORMS TO THE
                            FEDERAL BUREAU OF INVESTIGATION.

        (a) Report.--The Secretary of Defense shall submit to Congress a
    report on the consistency with which fingerprint cards and final
    disposition forms, as described in Criminal Investigations Policy
    Memorandum 10 issued by the Defense Inspector General on March 25, 1987,
    are reported by the Defense Criminal Investigative Organizations to the
    Federal Bureau of Investigation for inclusion in the Bureau's criminal
    history identification files. The report shall be prepared in
    consultation with the Director of the Federal Bureau of Investigation.
        (b) Matters To Be Included.--In the report, the Secretary shall--
                (1) survey fingerprint cards and final disposition forms
            filled out in the past 24 months by each investigative
            organization;
                (2) compare the fingerprint cards and final disposition
            forms filled out to all judicial and nonjudicial procedures
            initiated as a result of actions taken by each investigative
            service in the past 24 months;
                (3) account for any discrepancies between the forms filled
            out and the judicial and nonjudicial procedures initiated;
                (4) compare the fingerprint cards and final disposition
            forms filled out with the information held by the Federal Bureau
            of Investigation criminal history identification files;
                (5) identify any weaknesses in the collection of fingerprint
            cards and final disposition forms and in the reporting of that
            information to the Federal Bureau of Investigation; and
                (6) determine whether or not other law enforcement
            activities of the military services collect and report such
            information or, if not, should collect and report such
            information.

        (c) Submission of Report.--The report shall be submitted not later
    than one year after the date of the enactment of this Act.
        (d) Definition.--For the purposes of this section, the term
    ``criminal history identification files'', with respect to the Federal
    Bureau of Investigation, means the criminal history record system
    maintained by the Federal Bureau of Investigation based on fingerprint
    identification and any other method of positive identification.

                            Subtitle F--Other Matters

    SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFICERS
                            AND ENLISTED MEMBERS.

        (a) Enlisted Service Credit.--Section 972 of title 10, United States
    Code, is amended--
                (1) by inserting ``(a) Enlisted Members Required To Make Up
            Time Lost.--'' before ``An enlisted member'';
                (2) by striking out paragraphs (3) and (4) and inserting in
            lieu thereof the following:
                ``(3) is confined by military or civilian authorities for
            more than one day in connection with a trial, whether before,
            during, or after the trial; or''; and
                (3) by redesignating paragraph (5) as paragraph (4).

    [[Page 110 STAT. 322]]

        (b) Officer Service Credit.--Such section is further amended by
    adding at the end the following:
        ``(b) Officers Not Allowed Service Credit for Time Lost.--In the
    case of an officer of an armed force who after the date of the enactment
    of the National Defense Authorization Act for Fiscal Year 1996--
                ``(1) deserts;
                ``(2) is absent from his organization, station, or duty for
            more than one day without proper authority, as determined by
            competent authority;
                ``(3) is confined by military or civilian authorities for
            more than one day in connection with a trial, whether before,
            during, or after the trial; or
                ``(4) is unable for more than one day, as determined by
            competent authority, to perform his duties because of
            intemperate use of drugs or alcoholic liquor, or because of
            disease or injury resulting from his misconduct;

    the period of such desertion, absence, confinement, or inability to
    perform duties may not be counted in computing, for any purpose other
    than basic pay under section 205 of title 37, the officer's length of
    service.''.
        (c) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 972. Members: effect of time lost

        (2) The item relating to section 972 in the table of sections at the
    beginning of chapter 49 of such title is amended to read as follows:

    ``972. Members: effect of time lost.''.

        (d) Conforming Amendments.--(1) <<NOTE: 10 USC 1405.>> Section
    1405(c) is amended--
                (A) by striking out ``Made Up.--Time'' and inserting in lieu
            thereof ``Made Up or Excluded.--(1) Time'';
                (B) by striking out ``section 972'' and inserting in lieu
            thereof ``section 972(a)'';
                (C) by inserting after ``of this title'' the following: ``,
            or required to be made up by an enlisted member of the Navy,
            Marine Corps, or Coast Guard under that section with respect to
            a period of time after the date of the enactment of the National
            Defense Authorization Act for Fiscal Year 1995,''; and
                (D) by adding at the end the following:

        ``(2) Section 972(b) of this title excludes from computation of an
    officer's years of service for purposes of this section any time
    identified with respect to that officer under that section.''.
        (2) Chapter 367 of such title is amended--
                (A) in section 3925(b), by striking out ``section 972'' and
            inserting in lieu thereof ``section 972(a)''; and
                (B) by adding at the end of section 3926 the following new
            subsection:

        ``(e) Section 972(b) of this title excludes from computation of an
    officer's years of service for purposes of this section any time
    identified with respect to that officer under that section.''.
        (3)(A) Chapter 571 of such title is amended by inserting after
    section 6327 the following new section:

    [[Page 110 STAT. 323]]

    ``Sec. 6328. Computation of years of service: voluntary retirement

        ``(a) Enlisted Members.--Time required to be made up under section
    972(a) of this title after the date of the enactment of this section may
    not be counted in computing years of service under this chapter.
        ``(b) Officers.--Section 972(b) of this title excludes from
    computation of an officer's years of service for purposes of this
    chapter any time identified with respect to that officer under that
    section.''.

        (B) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 6327 the
    following new item:

    ``6328. Computation of years of service: voluntary retirement.''.

        (4) Chapter 867 of such title is amended--
                (A) in section 8925(b), by striking out ``section 972'' and
            inserting in lieu thereof ``section 972(a)''; and
                (B) by adding at the end of section 8926 the following new
            subsection:

        ``(d) Section 972(b) of this title excludes from computation of an
    officer's years of service for purposes of this section any time
    identified with respect to that officer under that section.''.
        (e) <<NOTE: 10 USC 972 note.>> Effective Date and Applicability.--
    The amendments made by this section shall take effect on the date of the
    enactment of this Act and shall apply to any period of time covered by
    section 972 of title 10, United States Code, that occurs after that
    date.

    SEC. 562. ARMY RANGER TRAINING.

        (a) In General.--(1) Chapter 401 of title 10, United States Code, is
    amended by inserting after section 4302 the following new section:

    ``Sec. 4303. Army Ranger training: instructor staffing; safety

        ``(a) Levels of Personnel Assigned.--(1) The Secretary of the Army
    shall ensure that at all times the number of officers, and the number of
    enlisted members, permanently assigned to the Ranger Training Brigade
    (or other organizational element of the Army primarily responsible for
    Ranger student training) are not less than 90 percent of the required
    manning spaces for officers, and for enlisted members, respectively, for
    that brigade.
        ``(2) In this subsection, the term `required manning spaces' means
    the number of personnel spaces for officers, and the number of personnel
    spaces for enlisted members, that are designated in Army authorization
    documents as the number required to accomplish the missions of a
    particular unit or organization.
        ``(b) Training Safety Cells.--(1) The Secretary of the Army shall
    establish and maintain an organizational entity known as a `safety cell'
    as part of the organizational elements of the Army responsible for
    conducting each of the three major phases of the Ranger Course. The
    safety cell in each different geographic area of Ranger Course training
    shall be comprised of personnel who have sufficient continuity and
    experience in that geographic area of such training to be knowledgeable
    of the local conditions year-round, including conditions of terrain,
    weather, water, and climate and other conditions and the potential
    effect on those conditions on Ranger student training and safety.
        ``(2) Members of each safety cell shall be assigned in sufficient
    numbers to serve as advisers to the officers in charge of the major

    [[Page 110 STAT. 324]]

    phase of Ranger training and shall assist those officers in making
    informed daily `go' and `no-go' decisions regarding training in light of
    all relevant conditions, including conditions of terrain, weather,
    water, and climate and other conditions.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 4302 the
    following new item:

    ``4303. Army Ranger training: instructor staffing; safety.''.

        (b) <<NOTE: 10 USC 4303 note.>> Accomplishment of Required Manning
    Levels.--(1) If, as of the date of the enactment of this Act, the number
    of officers, and the number of enlisted members, permanently assigned to
    the Army Ranger Training Brigade are not each at (or above) the
    requirement specified in subsection (a) of section 4303 of title 10,
    United States Code, as added by subsection (a), the Secretary of the
    Army shall--
                (A) take such steps as necessary to accomplish that
            requirement within 12 months after such date of enactment; and
                (B) submit to Congress, not later than 90 days after such
            date of enactment, a plan to achieve and maintain that
            requirement.

        (2) The requirement specified in subsection (a) of section 4303 of
    title 10, United States Code, as added by subsection (a), shall expire
    two years after the date (on or after the date of the enactment of this
    Act) on which the required manning levels referred to in paragraph (1)
    are first attained.
        (c) <<NOTE: Reports.>> GAO Assessment.--(1) Not later than one year
    after the date of the enactment of this Act, the Comptroller General
    shall submit to Congress a report providing a preliminary assessment of
    the implementation and effectiveness of all corrective actions taken by
    the Army as a result of the February 1995 accident at the Florida Ranger
    Training Camp, including an evaluation of the implementation of the
    required manning levels established by subsection (a) of section 4303 of
    title 10, United States Code, as added by subsection (a).

        (2) At the end of the two-year period specified in subsection
    (b)(2), the Comptroller General shall submit to Congress a report
    providing a final assessment of the matters covered in the preliminary
    report under paragraph (1). The report shall include the Comptroller
    General's recommendation as to the need to continue required statutory
    manning levels as specified in subsection (a) of section 4303 of title
    10, United States Code, as added by subsection (a).
        (d) Sense of Congress.--In light of requirement that particularly
    dangerous training activities (such as Ranger training, Search, Evasion,
    Rescue, and Escape (SERE) training, SEAL training, and Airborne
    training) must be adequately manned and resourced to ensure safety and
    effective oversight, it is the sense of Congress--
                (1) that the Secretary of Defense, in conjunction with the
            Secretaries of the military departments, should review and, if
            necessary, enhance oversight of all such training activities;
            and
                (2) that organizations similar to the safety cells required
            to be established for Army Ranger training in section 4303 of
            title 10, United States Code, as added by subsection (a), should
            (when appropriate) be used for all such training activities.

    [[Page 110 STAT. 325]]

    SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

        (a) Separation.--(1)(A) Chapter 59 of title 10, United States Code,
    is amended by inserting after section 1166 the following new section:
    ``Sec. 1167. Members under confinement by sentence of court-
                        martial: separation after six months
                        confinement

        ``Except as otherwise provided in regulations prescribed by the
    Secretary of Defense, a member sentenced by a court-martial to a period
    of confinement for more than six months may be separated from the
    member's armed force at any time after the sentence to confinement has
    become final under chapter 47 of this title and the person has served in
    confinement for a period of six months.''.
        (B) The table of sections at the beginning of chapter 59 of such
    title is amended by inserting after the item relating to section 1166
    the following new item:

    ``1167. Members under confinement by sentence of court-martial:
               separation after six months confinement.''.

        (2)(A) Chapter 1221 of title 10, United States Code, is amended by
    adding at the end the following:
    ``Sec. 12687. Reserves under confinement by sentence of court-
                          martial: separation after six months
                          confinement

        ``Except as otherwise provided in regulations prescribed by the
    Secretary of Defense, a Reserve sentenced by a court-martial to a period
    of confinement for more than six months may be separated from that
    Reserve's armed force at any time after the sentence to confinement has
    become final under chapter 47 of this title and the Reserve has served
    in confinement for a period of six months.''.
        (B) The table of sections at the beginning of chapter 1221 of such
    title is amended by inserting at the end thereof the following new item:

    ``12687. Reserves under confinement by sentence of court-martial:
               separation after six months confinement.''.

        (b) Drop From Rolls.--(1) Section 1161(b) of title 10, United States
    Code, is amended by striking out ``or (2)'' and inserting in lieu
    thereof ``(2) who may be separated under section 1178 of this title by
    reason of a sentence to confinement adjudged by a court-martial, or
    (3)''.
        (2) Section 12684 of such title is amended--
                (A) by striking out ``or'' at the end of paragraph (1);
                (B) by redesignating paragraph (2) as paragraph (3); and
                (C) by inserting after paragraph (1) the following new
            paragraph (2):
                ``(2) who may be separated under section 12687 of this title
            by reason of a sentence to confinement adjudged by a court-
            martial; or''.

    SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

        (a) In General.--(1) Chapter 3 of title 10, United States Code, is
    amended by inserting after section 129b the following new section:

    [[Page 110 STAT. 326]]

    ``Sec. 129c. Medical personnel: limitations on reductions

        ``(a) Limitation on Reduction.--For any fiscal year, the Secretary
    of Defense may not make a reduction in the number of medical personnel
    of the Department of Defense described in subsection (b) unless the
    Secretary makes a certification for that fiscal year described in
    subsection (c).
        ``(b) Covered Reductions.--Subsection (a) applies to a reduction in
    the number of medical personnel of the Department of Defense as of the
    end of a fiscal year to a number that is less than--
                ``(1) 95 percent of the number of such personnel at the end
            of the immediately preceding fiscal year; or
                ``(2) 90 percent of the number of such personnel at the end
            of the third fiscal year preceding the fiscal year.

        ``(c) Certification.--A certification referred to in subsection (a)
    with respect to reductions in medical personnel of the Department of
    Defense for any fiscal year is a certification by the Secretary of
    Defense to Congress that--
                ``(1) the number of medical personnel being reduced is
            excess to the current and projected needs of the Department of
            Defense; and
                ``(2) such reduction will not result in an increase in the
            cost of health care services provided under the Civilian Health
            and Medical Program of the Uniformed Services under chapter 55
            of this title.

        ``(d) Policy for Implementing Reductions.--Whenever the Secretary of
    Defense directs that there be a reduction in the total number of
    military medical personnel of the Department of Defense, the Secretary
    shall require that the reduction be carried out so as to ensure that the
    reduction is not exclusively or disproportionately borne by any one of
    the armed forces and is not exclusively or disproportionately borne by
    either the active or the reserve components.
        ``(e) Definition.--In this section, the term `medical personnel'
    means--
                ``(1) the members of the armed forces covered by the term
            `medical personnel' as defined in section 115a(g)(2) of this
            title; and
                ``(2) the civilian personnel of the Department of Defense
            assigned to military medical facilities.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 129b the
    following new item:

    ``129c. Medical personnel: limitations on reductions.''.

        (b) <<NOTE: 10 USC 129c note.>> Special Transition Rule for Fiscal
    Year 1996.--For purposes of applying subsection (b)(1) of section 129c
    of title 10, United States Code, as added by subsection (a), during
    fiscal year 1996, the number against which the percentage limitation of
    95 percent is computed shall be the number of medical personnel of the
    Department of Defense as of the end of fiscal year 1994 (rather than the
    number as of the end of fiscal year 1995).

        (c) Report on Planned Reductions.--(1) Not later than March 1, 1996,
    the Secretary of Defense shall submit to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives a plan for the reduction

    [[Page 110 STAT. 327]]

    of the number of medical personnel of the Department of Defense over the
    five-year period beginning on October 1, 1996.
        (2) The Secretary shall prepare the plan through the Assistant
    Secretary of Defense having responsibility for health affairs, who shall
    consult in the preparation of the plan with the Surgeon General of the
    Army, the Surgeon General of the Navy, and the Surgeon General of the
    Air Force.
        (3) For purposes of this subsection, the term ``medical personnel of
    the Department of Defense'' shall have the meaning given the term
    ``medical personnel'' in section 129c(e) of title 10, United States
    Code, as added by subsection (a).
        (d) Repeal of Superseded Provisions of Law.--The following
    provisions of law are repealed:
                (1) Section 711 of the National Defense Authorization Act
            for Fiscal Year 1991 (10 U.S.C. 115 note).
                (2) Subsection (b) of section 718 of the National Defense
            Authorization Act for Fiscal Years 1992 and 1993 (Public Law
            102-190; 10 U.S.C. 115 note).
                (3) Section 518 of the National Defense Authorization Act
            for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 12001 note).
    SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

        (a) Findings.--Congress makes the following findings:
                (1) Excessively high personnel tempo rates for members of
            the Armed Forces resulting from high-tempo unit operations
            degrades unit readiness and morale and eventually can be
            expected to adversely affect unit retention.
                (2) The Armed Forces have begun to develop methods to
            measure and manage personnel tempo rates.
                (3) The Armed Forces have attempted to reduce operations and
            personnel tempo for heavily tasked units by employing
            alternative capabilities and reducing tasking requirements.

        (b) Sense of Congress.--The Secretary of Defense should continue to
    enhance the knowledge within the Armed Forces of personnel tempo and to
    improve the techniques by which personnel tempo is defined and managed
    with a view toward establishing and achieving reasonable personnel tempo
    standards for all personnel, regardless of service, unit, or assignment.
    SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR OFFICERS
                            OF COMMISSIONED CORPS OF NATIONAL OCEANIC
                            AND ATMOSPHERIC ADMINISTRATION.

        (a) Separation Benefits.--Subsection (a) of section 3 of the Act of
    August 10, 1956 (33 U.S.C. 857a), is amended by adding at the end the
    following new paragraph:
                ``(15) Section 1174a, special separation benefits (except
            that benefits under subsection (b)(2)(B) of such section are
            subject to the availability of appropriations for such purpose
            and are provided at the discretion of the Secretary of
            Commerce).''.

        (b) Technical Corrections.--Such section is further

    amended--
                (1) by striking out ``Coast and Geodetic Survey'' in
            subsections (a) and (b) and inserting in lieu thereof
            ``commissioned officer corps of the National Oceanic and
            Atmospheric Administration''; and

    [[Page 110 STAT. 328]]

                (2) in subsection (a), by striking out ``including changes
            in those rules made after the effective date of this Act'' in
            the matter preceding paragraph (1) and inserting in lieu thereof
            ``as those provisions are in effect from time to time''.

        (c) <<NOTE: 10 USC 1293 note.>> Temporary Early Retirement
    Authority.--Section 4403 (other than subsection (f)) of the National
    Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106
    Stat. 2702; 10 U.S.C. 1293 note) shall apply to the commissioned officer
    corps of the National Oceanic and Atmospheric Administration in the same
    manner and to the same extent as that section applies to the Department
    of Defense. The Secretary of Commerce shall implement the provisions of
    that section with respect to such commissioned officer corps and shall
    apply the provisions of that section to the provisions of the Coast and
    Geodetic Survey Commissioned Officers' Act of 1948 relating to the
    retirement of members of such commissioned officer corps.

        (d) <<NOTE: 33 USC 857a note.>> Effective Date.--This section shall
    apply only to members of the commissioned officer corps of the National
    Oceanic and Atmospheric Administration who are separated after September
    30, 1995.
    SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE THE
                            HIV-1 VIRUS.

        (a) In General.--(1) Section 1177 of title 10, United States Code,
    is amended to read as follows:
    ``Sec. 1177. Members infected with HIV-1 virus: mandatory
                        discharge or retirement

        ``(a) Mandatory Separation.--A member of the armed forces who is
    HIV-positive shall be separated. Such separation shall be made on a date
    determined by the Secretary concerned, which shall be as soon as
    practicable after the date on which the determination is made that the
    member is HIV-positive and not later than the last day of the sixth
    month beginning after such date.
        ``(b) Form of Separation.--If a member to be separated under this
    section is eligible to retire under any provision of law or to be
    transferred to the Fleet Reserve or Fleet Marine Corps Reserve, the
    member shall be so retired or so transferred. Otherwise, the member
    shall be discharged. The characterization of the service of the member
    shall be determined without regard to the determination that the member
    is HIV-positive.
        ``(c) Deferral of Separation for Members in 18-Year Retirement
    Sanctuary.--In the case of a member to be discharged under this section
    who on the date on which the member is to be discharged is within two
    years of qualifying for retirement under any provision of law, or of
    qualifying for transfer to the Fleet Reserve or Fleet Marine Corps
    Reserve under section 6330 of this title, the member may, as determined
    by the Secretary concerned, be retained on active duty until the member
    is qualified for retirement or transfer to the Fleet Reserve or Fleet
    Marine Corps Reserve, as the case may be, and then be so retired or
    transferred, unless the member is sooner retired or discharged under any
    other provision of law.
        ``(d) Separation To Be Considered Involuntary.--A separation under
    this section shall be considered to be an involuntary separation for
    purposes of any other provision of law.

    [[Page 110 STAT. 329]]

        ``(e) Entitlement to Health Care.--A member separated under this
    section shall be entitled to medical and dental care under chapter 55 of
    this title to the same extent and under the same conditions as a person
    who is entitled to such care under section 1074(b) of this title.
        ``(f) Counseling About Available Medical Care.--A member to be
    separated under this section shall be provided information, in writing,
    before such separation of the available medical care (through the
    Department of Veterans Affairs and otherwise) to treat the member's
    condition. Such information shall include identification of specific
    medical locations near the member's home of record or point of discharge
    at which the member may seek necessary medical care.
        ``(g) HIV-Positive Members.--A member shall be considered to be HIV-
    positive for purposes of this section if there is serologic evidence
    that the member is infected with the virus known as Human
    Immunodeficiency Virus-1 (HIV-1), the virus most commonly associated
    with the acquired immune deficiency syndrome (AIDS) in the United
    States. Such serologic evidence shall be considered to exist if there is
    a reactive result given by an enzyme-linked immunosorbent assay (ELISA)
    serologic test that is confirmed by a reactive and diagnostic
    immunoelectrophoresis test (Western blot) on two separate samples. Any
    such serologic test must be one that is approved by the Food and Drug

    Administration.''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 59 of such title is amended to read as follows:

    ``1177. Members infected with HIV-1 virus: mandatory discharge or
               retirement.''.

        (b) <<NOTE: 10 USC 1177 note.>> Effective Date.--Section 1177 of
    title 10, United States Code, as amended by subsection (a), applies with
    respect to members of the Armed Forces determined to be HIV-positive
    before, on, or after the date of the enactment of this Act. In the case
    of a member of the Armed Forces determined to be HIV-positive before
    such date, the deadline for separation of the member under subsection
    (a) of such section, as so amended, shall be determined from the date of
    the enactment of this Act (rather than from the date of such
    determination).
    SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT AND
                            MILITARY CHILD CARE ACT.

        (a) In General.--(1) Subtitle A of title 10, United States Code, is
    amended by inserting after chapter 87 the following new chapter:

         ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

    ``Subchapter                                                        Sec.
                 Military Family Programs                               1781
                 Military Child Care                                    1791

                    ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

    ``Sec.
    ``1781. Office of Family Policy.
    ``1782. Surveys of military families.
    ``1783. Family members serving on advisory committees.
    ``1784. Employment opportunities for military spouses.
    ``1785. Youth sponsorship program.

    [[Page 110 STAT. 330]]

    ``1786. Dependent student travel within the United States.
    ``1787. Reporting of child abuse.

    ``Sec. 1781. Office of Family Policy

        ``(a) Establishment.--There is in the Office of the Secretary of
    Defense an Office of Family Policy (hereinafter in this section referred
    to as the `Office'). The Office shall be under the Assistant Secretary
    of Defense for Force Management and Personnel.
        ``(b) Duties.--The Office--
                ``(1) shall coordinate programs and activities of the
            military departments to the extent that they relate to military
            families; and
                ``(2) shall make recommendations to the Secretaries of the
            military departments with respect to programs and policies
            regarding military families.

        ``(c) Staff.--The Office shall have not less than five professional
    staff members.

    ``Sec. 1782. Surveys of military families

        ``(a) Authority.--The Secretary of Defense may conduct surveys of
    members of the armed forces on active duty or in an active status,
    members of the families of such members, and retired members of the
    armed forces to determine the effectiveness of Federal programs relating
    to military families and the need for new programs.
        ``(b) Responses To Be Voluntary.--Responses to surveys conducted
    under this section shall be voluntary.
        ``(c) Federal Recordkeeping Requirements.--With respect to such
    surveys, family members of members of the armed forces and reserve and
    retired members of the armed forces shall be considered to be employees
    of the United States for purposes of section 3502(3)(A)(i) of title 44.

    ``Sec. 1783. Family members serving on advisory committees

        ``A committee within the Department of Defense which advises or
    assists the Department in the performance of any function which affects
    members of military families and which includes members of military
    families in its membership shall not be considered an advisory committee
    under section 3(2) of the Federal Advisory Committee Act (5 U.S.C. App.)
    solely because of such membership.

    ``Sec. 1784. Employment opportunities for military spouses

        ``(a) <<NOTE: President.>> Authority.--The President shall order
    such measures as the President considers necessary to increase
    employment opportunities for spouses of members of the armed forces.
    Such measures may include--
                ``(1) excepting, pursuant to section 3302 of title 5, from
            the competitive service positions in the Department of Defense
            located outside of the United States to provide employment
            opportunities for qualified spouses of members of the armed
            forces in the same geographical area as the permanent duty
            station of the members; and
                ``(2) providing preference in hiring for positions in
            nonappropriated fund activities to qualified spouses of members
            of the armed forces stationed in the same geographical area as
            the nonappropriated fund activity for positions in wage grade
            UA-8 and below and equivalent positions and for positions paid
            at hourly rates.

    [[Page 110 STAT. 331]]

        ``(b) Regulations.--The Secretary of Defense shall prescribe
    regulations--
                ``(1) to implement such measures as the President orders
            under subsection (a);
                ``(2) to provide preference to qualified spouses of members
            of the armed forces in hiring for any civilian position in the
            Department of Defense if the spouse is among persons determined
            to be best qualified for the position and if the position is
            located in the same geographical area as the permanent duty
            station of the member;
                ``(3) to ensure that notice of any vacant position in the
            Department of Defense is provided in a manner reasonably
            designed to reach spouses of members of the armed forces whose
            permanent duty stations are in the same geographic area as the
            area in which the position is located; and
                ``(4) to ensure that the spouse of a member of the armed
            forces who applies for a vacant position in the Department of
            Defense shall, to the extent practicable, be considered for any
            such position located in the same geographic area as the
            permanent duty station of the member.

        ``(c) Status of Preference Eligibles.--Nothing in this section shall
    be construed to provide a spouse of a member of the armed forces with
    preference in hiring over an individual who is a preference eligible.

    ``Sec. 1785. Youth sponsorship program

        ``(a) Requirement.--The Secretary of Defense shall require that
    there be at each military installation a youth sponsorship program to
    facilitate the integration of dependent children of members of the armed
    forces into new surroundings when moving to that military installation
    as a result of a parent's permanent change of station.
        ``(b) Description of Programs.--The program at each installation
    shall provide for involvement of dependent children of members presently
    stationed at the military installation and shall be directed primarily
    toward children in their preteen and teenage years.

    ``Sec. 1786. Dependent student travel within the United States

        ``Funds available to the Department of Defense for the travel and
    transportation of dependent students of members of the armed forces
    stationed overseas may be obligated for transportation allowances for
    travel within or between the contiguous States.

    ``Sec. 1787. Reporting of child abuse

        ``(a) In General.--The Secretary of Defense shall request each State
    to provide for the reporting to the Secretary of any report the State
    receives of known or suspected instances of child abuse and neglect in
    which the person having care of the child is a member of the armed
    forces (or the spouse of the member).
        ``(b) Definition.--In this section, the term `child abuse and
    neglect' has the meaning provided in section 3(1) of the Child Abuse
    Prevention and Treatment Act (42 U.S.C. 5102).

                      ``SUBCHAPTER II--MILITARY CHILD CARE

    ``Sec.
    ``1791. Funding for military child care.
    ``1792. Child care employees.

    [[Page 110 STAT. 332]]

    ``1793. Parent fees.
    ``1794. Child abuse prevention and safety at facilities.
    ``1795. Parent partnerships with child development centers.
    ``1796. Subsidies for family home day care.
    ``1797. Early childhood education program.
    ``1798. Definitions.

    ``Sec. 1791. Funding for military child care

        ``It is the policy of Congress that the amount of appropriated funds
    available during a fiscal year for operating expenses for military child
    development centers and programs shall be not less than the amount of
    child care fee receipts that are estimated to be received by the
    Department of Defense during that fiscal year.

    ``Sec. 1792. Child care employees

        ``(a) <<NOTE: Regulations.>> Required Training.--(1) The Secretary
    of Defense shall prescribe regulations implementing, a training program
    for child care employees. Those regulations shall apply uniformly among
    the military departments. Subject to paragraph (2), satisfactory
    completion of the training program shall be a condition of employment of
    any person as a child care employee.

        ``(2) Under those regulations, the Secretary shall require that each
    child care employee complete the training program not later than six
    months after the date on which the employee is employed as a child care
    employee.
        ``(3) The training program established under this subsection shall
    cover, at a minimum, training in the following:
                ``(A) Early childhood development.
                ``(B) Activities and disciplinary techniques appropriate to
            children of different ages.
                ``(C) Child abuse prevention and detection.
                ``(D) Cardiopulmonary resuscitation and other emergency
            medical procedures.

        ``(b) Training and Curriculum Specialists.--(1) The Secretary of
    Defense shall require that at least one employee at each military child
    development center be a specialist in training and curriculum
    development. The Secretary shall ensure that such employees have
    appropriate credentials and experience.
        ``(2) The duties of such employees shall include the following:
                ``(A) Special teaching activities at the center.
                ``(B) Daily oversight and instruction of other child care
            employees at the center.
                ``(C) Daily assistance in the preparation of lesson plans.
                ``(D) Assistance in the center's child abuse prevention and
            detection program.
                ``(E) Advising the director of the center on the performance
            of other child care employees.

        ``(3) Each employee referred to in paragraph (1) shall be an
    employee in a competitive service position.
        ``(c) Competitive Rates of Pay.--For the purpose of providing
    military child development centers with a qualified and stable civilian
    workforce, employees at a military installation who are directly
    involved in providing child care and are paid from nonappropriated
    funds--
                ``(1) in the case of entry-level employees, shall be paid at
            rates of pay competitive with the rates of pay paid to other
            entry-level employees at that installation who are drawn from
            the same labor pool; and

    [[Page 110 STAT. 333]]

                ``(2) in the case of other employees, shall be paid at rates
            of pay substantially equivalent to the rates of pay paid to
            other employees at that installation with similar training,
            seniority, and experience.

        ``(d) Employment Preference Program for Military Spouses.--(1) The
    Secretary of Defense shall conduct a program under which qualified
    spouses of members of the armed forces shall be given a preference in
    hiring for the position of child care employee in a position paid from
    nonappropriated funds if the spouse is among persons determined to be
    best qualified for the position.
        ``(2) A spouse who is provided a preference under this subsection at
    a military child development center may not be precluded from obtaining
    another preference, in accordance with section 1794 of this title, in
    the same geographic area as the military child development center.
        ``(e) Competitive Service Position Defined.--In this section, the
    term `competitive service position' means a position in the competitive
    service, as defined in section 2102(a)(1) of title 5.

    ``Sec. 1793. Parent fees

        ``(a) <<NOTE: Regulations.>> In General.--The Secretary of Defense
    shall prescribe regulations establishing fees to be charged parents for
    the attendance of children at military child development centers. Those
    regulations shall be uniform for the military departments and shall
    require that, in the case of children who attend the centers on a
    regular basis, the fees shall be based on family income.

        ``(b) Local Waiver Authority.--The Secretary of Defense may provide
    authority to installation commanders, on a case-by-case basis, to
    establish fees for attendance of children at child development centers
    at rates lower than those prescribed under subsection (a) if the rates
    prescribed under subsection (a) are not competitive with rates at local
    non-military child development centers.

    ``Sec. 1794. Child abuse prevention and safety at facilities

        ``(a) Child Abuse Task Force.--The Secretary of Defense shall
    maintain a special task force to respond to allegations of widespread
    child abuse at a military installation. The task force shall be composed
    of personnel from appropriate disciplines, including, where appropriate,
    medicine, psychology, and childhood development. In the case of such
    allegations, the task force shall provide assistance to the commander of
    the installation, and to parents at the installation, in helping them to
    deal with such allegations.
        ``(b) National Hotline.--(1) The Secretary of Defense shall maintain
    a national telephone number for persons to use to report suspected child
    abuse or safety violations at a military child development center or
    family home day care site. The Secretary shall ensure that such reports
    may be made anonymously if so desired by the person making the report.
    The Secretary shall establish procedures for following up on complaints
    and information received over that number.
        ``(2) <<NOTE: Public information.>> The Secretary shall publicize
    the existence of the number.

        ``(c) <<NOTE: Regulations.>> Assistance From Local Authorities.--The
    Secretary of Defense shall prescribe regulations requiring that, in a
    case of allegations of child abuse at a military child development
    center or family home day care site, the commander of the military
    installation or the head of the task force established under sub

    [[Page 110 STAT. 334]]

    section (a) shall seek the assistance of local child protective
    authorities if such assistance is available.

        ``(d) Safety Regulations.--The Secretary of Defense shall prescribe
    regulations on safety and operating procedures at military child
    development centers. Those regulations shall apply uniformly among the
    military departments.
        ``(e) Inspections.--The Secretary of Defense shall require that each
    military child development center be inspected not less often than four
    times a year. Each such inspection shall be unannounced. At least one
    inspection a year shall be carried out by a representative of the
    installation served by the center, and one inspection a year shall be
    carried out by a representative of the major command under which that
    installation operates.
        ``(f) Remedies for Violations.--(1) Except as provided in paragraph
    (2), any violation of a safety, health, or child welfare law or
    regulation (discovered at an inspection or otherwise) at a military
    child development center shall be remedied immediately.
        ``(2) In the case of a violation that is not life threatening, the
    commander of the major command under which the installation concerned
    operates may waive the requirement that the violation be remedied
    immediately for a period of up to 90 days beginning on the date of the
    discovery of the violation. If the violation is not remedied as of the
    end of that 90-day period, the military child development center shall
    be closed until the violation is remedied. The Secretary of the military
    department concerned may waive the preceding sentence and authorize the
    center to remain open in a case in which the violation cannot reasonably
    be remedied within that 90-day period or in which major facility
    reconstruction is required.

    ``Sec. 1795. Parent partnerships with child development centers

        ``(a) Parent Boards.--The Secretary of Defense shall require that
    there be established at each military child development center a board
    of parents, to be composed of parents of children attending the center.
    The board shall meet periodically with staff of the center and the
    commander of the installation served by the center for the purpose of
    discussing problems and concerns. The board, together with the staff of
    the center, shall be responsible for coordinating the parent
    participation program described in subsection (b).
        ``(b) Parent Participation Programs.--The Secretary of Defense shall
    require the establishment of a parent participation program at each
    military child development center. As part of such program, the
    Secretary of Defense may establish fees for attendance of children at
    such a center, in the case of parents who participate in the parent
    participation program at that center, at rates lower than the rates that
    otherwise apply.

    ``Sec. 1796. Subsidies for family home day care

        ``The Secretary of Defense may use appropriated funds available for
    military child care purposes to provide assistance to family home day
    care providers so that family home day care services can be provided to
    members of the armed forces at a cost comparable to the cost of services
    provided by military child development
    centers. <<NOTE: Regulations.>> The Secretary shall prescribe
    regulations for the provision of such assistance.

    [[Page 110 STAT. 335]]

    ``Sec. 1797. Early childhood education program

        ``The Secretary of Defense shall require that all military child
    development centers meet standards of operation necessary for
    accreditation by an appropriate national early childhood programs
    accrediting body.

    ``Sec. 1798. Definitions

        ``In this subchapter:
                ``(1) The term `military child development center' means a
            facility on a military installation (or on property under the
            jurisdiction of the commander of a military installation) at
            which child care services are provided for members of the armed
            forces or any other facility at which such child care services
            are provided that is operated by the Secretary of a military
            department.
                ``(2) The term `family home day care' means home-based child
            care services that are provided for members of the armed forces
            by an individual who (A) is certified by the Secretary of the
            military department concerned as qualified to provide those
            services, and (B) provides those services on a regular basis for
            compensation.
                ``(3) The term `child care employee' means a civilian
            employee of the Department of Defense who is employed to work in
            a military child development center (regardless of whether the
            employee is paid from appropriated funds or nonappropriated
            funds).
                ``(4) The term `child care fee receipts' means those
            nonappropriated funds that are derived from fees paid by members
            of the armed forces for child care services provided at military
            child development centers.''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part II of subtitle A, of title 10, United States Code,
    are amended by inserting after the item relating to chapter 87 the
    following new item:

    ``88. Military Family Programs and Military Child Care...........1781''.

        (b) Report on Five-Year Demand for Child Care.--(1) Not later than
    the date of the submission of the budget for fiscal year 1997 pursuant
    to section 1105 of title 31, United States Code, the Secretary of
    Defense shall submit to Congress a report on the expected demand for
    child care by military and civilian personnel of the Department of
    Defense during fiscal years 1997 through 2001.
        (2) The report shall include--
                (A) a plan for meeting the expected child care demand
            identified in the report; and
                (B) an estimate of the cost of implementing that plan.

        (3) The report shall also include a description of methods for
    monitoring family home day care programs of the military

    departments.
        (c) <<NOTE: 10 USC 1787 note.>> Plan for Implementation of
    Accreditation Requirement.--The Secretary of Defense shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a plan for carrying out the
    requirements of section 1787 of title 10, United States Code, as added
    by subsection (a). The plan shall be submitted not later than April 1,
    1997.

    [[Page 110 STAT. 336]]

        (d) <<NOTE: 10 USC 1784 note.>> Continuation of Delegation of
    Authority With Respect to Hiring Preference for Qualified Military
    Spouses.--The provisions of Executive Order No. 12568, issued October 2,
    1986 (10 U.S.C. 113 note), shall apply as if the reference in that
    Executive order to section 806(a)(2) of the Department of Defense
    Authorization Act of 1986 refers to section 1784 of title 10, United
    States Code, as added by subsection (a).

        (e) Repealer.--The following provisions of law are repealed:
                (1) The Military Family Act of 1985 (title VIII of Public
            Law 99-145; 10 U.S.C. 113 note).
                (2) The Military Child Care Act of 1989 (title XV of Public
            Law 101-189; 10 U.S.C. 113 note).
    SEC. 569.  <<NOTE: 10 USC 1501 note.>> DETERMINATION OF
                            WHEREABOUTS AND STATUS OF MISSING PERSONS.

        (a) Purpose.--The purpose of this section is to ensure that any
    member of the Armed Forces (and any Department of Defense civilian
    employee or contractor employee who serves with or accompanies the Armed
    Forces in the field under orders) who becomes missing or unaccounted for
    is ultimately accounted for by the United States and, as a general rule,
    is not declared dead solely because of the passage of time.
        (b) In General.--(1) Part II of subtitle A of title 10, United
    States Code, is amended by inserting after chapter 75 the following new
    chapter:

                          ``CHAPTER 76--MISSING PERSONS

    ``Sec.
    ``1501. System for accounting for missing persons.
    ``1502. Missing persons: initial report.
    ``1503. Actions of Secretary concerned; initial board inquiry.
    ``1504. Subsequent board of inquiry.
    ``1505. Further review.
    ``1506. Personnel files.
    ``1507. Recommendation of status of death.
    ``1508. Judicial review.
    ``1509. Preenactment, special interest cases.
    ``1510. Applicability to Coast Guard.
    ``1511. Return alive of person declared missing or dead.
    ``1512. Effect on State law.
    ``1513. Definitions.

    ``Sec. 1501. System for accounting for missing persons

        ``(a) Office for Missing Personnel.--
    (1) <<NOTE: Establishment.>> The Secretary of Defense shall establish
    within the Office of the Secretary of Defense an office to have
    responsibility for Department of Defense policy relating to missing
    persons. Subject to the authority, direction, and control of the
    Secretary of Defense, the responsibilities of the office shall include--
                ``(A) policy, control, and oversight within the Department
            of Defense of the entire process for investigation and recovery
            related to missing persons (including matters related to search,
            rescue, escape, and evasion); and
                ``(B) coordination for the Department of Defense with other
            departments and agencies of the United States on all matters
            concerning missing persons.

        ``(2) In carrying out the responsibilities of the office established
    under this subsection, the head of the office shall be responsible for
    the coordination for such purposes within the Department of

    [[Page 110 STAT. 337]]

    Defense among the military departments, the Joint Staff, and the
    commanders of the combatant commands.
        ``(3) The office shall establish policies, which shall apply
    uniformly throughout the Department of Defense, for personnel recovery
    (including search, rescue, escape, and evasion).
        ``(4) The office shall establish procedures to be followed by
    Department of Defense boards of inquiry, and by officials reviewing the
    reports of such boards, under this chapter.
        ``(b) Uniform DoD Procedures.--(1) The Secretary of Defense shall
    prescribe procedures, to apply uniformly throughout the Department of
    Defense, for--
                ``(A) the determination of the status of persons described
            in subsection (c); and
                ``(B) for the systematic, comprehensive, and timely
            collection, analysis, review, dissemination, and periodic update
            of information related to such persons.

        ``(2) Such procedures may provide for the delegation by the
    Secretary of Defense of any responsibility of the Secretary under this
    chapter to the Secretary of a military department.

        ``(3) Such procedures shall be prescribed in a single directive
    applicable to all elements of the Department of Defense.
        ``(4) As part of such procedures, the Secretary may provide for the
    extension, on a case-by-case basis, of any time limit specified in
    section 1502, 1503, or 1504 of this title. Any such extension may not be
    for a period in excess of the period with respect to which the extension
    is provided. Subsequent extensions may be provided on the same basis.
        ``(c) Covered Persons.--Section 1502 of this title applies in the
    case of the following persons:
                ``(1) Any member of the armed forces on active duty who
            becomes involuntarily absent as a result of a hostile action, or
            under circumstances suggesting that the involuntary absence is a
            result of a hostile action, and whose status is undetermined or
            who is unaccounted for.
                ``(2) Any civilian employee of the Department of Defense,
            and any employee of a contractor of the Department of Defense,
            who serves with or accompanies the armed forces in the field
            under orders who becomes involuntarily absent as a result of a
            hostile action, or under circumstances suggesting that the
            involuntary absence is a result of a hostile action, and whose
            status is undetermined or who is unaccounted for.

        ``(d) Primary Next of Kin.--The individual who is primary next of
    kin of any person prescribed in subsection (c) may for purposes of this
    chapter designate another individual to act on behalf of that individual
    as primary next of kin. The Secretary concerned shall treat an
    individual so designated as if the individual designated were the
    primary next of kin for purposes of this chapter. A designation under
    this subsection may be revoked at any time by the person who made the
    designation.
        ``(e) Termination of Applicability of Procedures When Missing Person
    Is Accounted for.--The provisions
    of this chapter relating to boards of inquiry and to the actions by the
    Secretary concerned on the reports of those boards shall cease to apply
    in the case of a missing person upon the person becoming accounted for
    or otherwise being determined to be in a status other than missing.

    [[Page 110 STAT. 338]]

        ``(f) Secretary Concerned.--In this chapter, the term `Secretary
    concerned' includes, in the case of a civilian employee of the
    Department of Defense or contractor of the Department of Defense, the
    Secretary of the military department or head of the element of the
    Department of Defense employing the employee or contracting with the
    contractor, as the case may be.

    ``Sec. 1502. Missing persons: initial report

        ``(a) Preliminary Assessment and Recommendation by Commander.--After
    receiving information that the whereabouts and status of a person
    described in section 1501(c) of this title is uncertain and that the
    absence of the person may be involuntary, the commander of the unit,
    facility, or area to or in which the person is assigned shall make a
    preliminary assessment of the circumstances. If, as a result of that
    assessment, the commander concludes that the person is missing, the
    commander shall--
                ``(1) recommend that the person be placed in a missing
            status; and
                ``(2) not later than 48 hours after receiving such
            information, transmit a report containing that recommendation to
            the theater component commander with jurisdiction over the
            missing person in accordance with procedures prescribed under
            section 1501(b) of this title.

        ``(b) Transmission Through Theater Component Commander.--Upon
    reviewing a report under subsection (a) recommending that a person be
    placed in a missing status, the theater component commander shall ensure
    that all necessary actions are being taken, and all appropriate assets
    are being used, to resolve the status of the missing person. Not later
    than 14 days after receiving the report, the theater component commander
    shall forward the report to the Secretary of Defense or the Secretary
    concerned in accordance with procedures prescribed under section 1501(b)
    of this title. The theater component commander shall include with such
    report a certification that all necessary actions are being taken, and
    all appropriate assets are being used, to resolve the status of the
    missing person.
        ``(c) Safeguarding and Forwarding of Records.--A commander making a
    preliminary assessment under subsection (a) with respect to a missing
    person shall (in accordance with procedures prescribed under section
    1501 of this title) safeguard and forward for official use any
    information relating to the whereabouts and status of the missing person
    that results from the preliminary assessment or from actions taken to
    locate the person. The theater component commander through whom the
    report with respect to the missing person is transmitted under
    subsection (b) shall ensure that all pertinent information relating to
    the whereabouts and status of the missing person that results from the
    preliminary assessment or from actions taken to locate the person is
    properly safeguarded to avoid loss, damage, or modification.

    ``Sec. 1503. Actions of Secretary concerned; initial board inquiry

        ``(a) Determination by Secretary.--Upon receiving a recommendation
    under section 1502(b) of this title that a person be placed in a missing
    status, the Secretary receiving the recommendation shall review the
    recommendation and, not later than 10 days after receiving such
    recommendation, shall appoint a board under

    [[Page 110 STAT. 339]]

    this section to conduct an inquiry into the whereabouts and status of
    the person.
        ``(b) Inquiries Involving More Than One Missing Person.--If it
    appears to the Secretary who appoints a board under this section that
    the absence or missing status of two or more persons is factually
    related, the Secretary may appoint a single board under this section to
    conduct the inquiry into the whereabouts and status of all such persons.
        ``(c) Composition.--(1) A board appointed under this section to
    inquire into the whereabouts and status of a person shall consist of at
    least one individual described in paragraph (2) who has experience with
    and understanding of military operations or activities similar to the
    operation or activity in which the person

    disappeared.
        ``(2) An individual referred to in paragraph (1) is the following:
                ``(A) A military officer, in the case of an inquiry with
            respect to a member of the armed forces.
                ``(B) A civilian, in the case of an inquiry with respect to
            a civilian employee of the Department of Defense or of a
            contractor of the Department of Defense.

        ``(3) An individual may be appointed as a member of a board under
    this section only if the individual has a security clearance that
    affords the individual access to all information relating to the
    whereabouts and status of the missing persons covered by the inquiry.
        ``(4) A Secretary appointing a board under this subsection shall,
    for purposes of providing legal counsel to the board, assign to the
    board a judge advocate, or appoint to the board an attorney, who has
    expertise in the law relating to missing persons, the determination of
    death of such persons, and the rights of family members and dependents
    of such persons.
        ``(d) Duties of Board.--A board appointed to conduct an inquiry into
    the whereabouts and status of a missing person under this section
    shall--
                ``(1) collect, develop, and investigate all facts and
            evidence relating to the disappearance or whereabouts and status
            of the person;
                ``(2) collect appropriate documentation of the facts and
            evidence covered by the board's investigation;
                ``(3) analyze the facts and evidence, make findings based on
            that analysis, and draw conclusions as to the current
            whereabouts and status of the person; and
                ``(4) with respect to each person covered by the inquiry,
            recommend to the Secretary who appointed the board that--
                        ``(A) the person be placed in a missing status; or
                        ``(B) the person be declared to have deserted, to be
                    absent without leave, or (subject to the requirements of
                    section 1507 of this title) to be dead.

        ``(e) Board Proceedings.--During the proceedings of an inquiry under
    this section, a board shall--
                ``(1) collect, record, and safeguard all facts, documents,
            statements, photographs, tapes, messages, maps, sketches,
            reports, and other information (whether classified or
            unclassified) relating to the whereabouts and status of each
            person covered by the inquiry;

    [[Page 110 STAT. 340]]

                ``(2) gather information relating to actions taken to find
            the person, including any evidence of the whereabouts and status
            of the person arising from such actions; and
                ``(3) <<NOTE: Records.>> maintain a record of its
            proceedings.

        ``(f) Counsel for Missing Person.--(1) The Secretary appointing a
    board to conduct an inquiry under this section shall appoint counsel to
    represent each person covered by the inquiry or, in a case covered by
    subsection (b), one counsel to represent all persons covered by the
    inquiry. Counsel appointed under this paragraph may be referred to as
    `missing person's counsel' and represents the interests of the person
    covered by the inquiry (and not any member of the person's family or
    other interested parties).
        ``(2) To be appointed as a missing person's counsel, a person must--
                ``(A) have the qualifications specified in section 827(b) of
            this title (article 27(b) of the Uniform Code of Military
            Justice) for trial counsel or defense counsel detailed for a
            general

            court-martial;
                ``(B) have a security clearance that affords the counsel
            access to all information relating to the whereabouts and status
            of the person or persons covered by the inquiry; and
                ``(C) have expertise in the law relating to missing persons,
            the determination of the death of such persons, and the rights
            of family members and dependents of such persons.

        ``(3) A missing person's counsel--
                ``(A) shall have access to all facts and evidence considered
            by the board during the proceedings under the inquiry for which
            the counsel is appointed;
                ``(B) shall observe all official activities of the board
            during such proceedings;
                ``(C) may question witnesses before the board; and
                ``(D) shall monitor the deliberations of the board.

        ``(4) A missing person's counsel shall assist the board in ensuring
    that all appropriate information concerning the case is collected,
    logged, filed, and safeguarded.
        ``(5) A missing person's counsel shall review the report of the
    board under subsection (h) and submit to the Secretary concerned who
    appointed the board an independent review of that report. That review
    shall be made an official part of the record of the board.
        ``(g) Access to Proceedings.--The proceedings of a board during an
    inquiry under this section shall be closed to the public (including,
    with respect to the person covered by the inquiry, the primary next of
    kin, other members of the immediate family, and any other previously
    designated person of the person).
        ``(h) Report.--(1) A board appointed under this section shall submit
    to the Secretary who appointed the board a report on the inquiry carried
    out by the board. The report shall include--
                ``(A) a discussion of the facts and evidence considered by
            the board in the inquiry;
                ``(B) the recommendation of the board under subsection (d)
            with respect to each person covered by the report; and
                ``(C) disclosure of whether classified documents and
            information were reviewed by the board or were otherwise used by
            the board in forming recommendations under subparagraph (B).

    [[Page 110 STAT. 341]]

        ``(2) A board shall submit a report under this subsection with
    respect to the inquiry carried out by the board not later than 30 days
    after the date of the appointment of the board to carry out the inquiry.
    The report may include a classified annex.
        ``(3) The Secretary of Defense shall prescribe procedures for the
    release of a report submitted under this subsection with respect to a
    missing person. Such procedures shall provide that the report may not be
    made public (except as provided for in subsection (j)) until one year
    after the date on which the report is submitted.
        ``(i) Determination by Secretary.--(1) Not later than 30 days after
    receiving a report from a board under subsection (h), the Secretary
    receiving the report shall review the report.
        ``(2) In reviewing a report under paragraph (1), the Secretary shall
    determine whether or not the report is complete and free of
    administrative error. If the Secretary determines that the report is
    incomplete, or that the report is not free of administrative error, the
    Secretary may return the report to the board for further action on the
    report by the board.
        ``(3) Upon a determination by the Secretary that a report reviewed
    under this subsection is complete and free of administrative error, the
    Secretary shall make a determination concerning the status of each
    person covered by the report, including whether the person shall--
                ``(A) be declared to be missing;
                ``(B) be declared to have deserted;
                ``(C) be declared to be absent without leave; or
                ``(D) be declared to be dead.

        ``(j) Report to Family Members and Other Interested Persons.--Not
    later than 30 days after the date on which the Secretary concerned makes
    a determination of the status of a person under subsection (i), the
    Secretary shall take reasonable actions to--
                ``(1) provide to the primary next of kin, the other members
            of the immediate family, and any other previously designated
            person of the person--
                        ``(A) an unclassified summary of the unit
                    commander's report with respect to the person under
                    section 1502(a) of this title; and
                        ``(B) the report of the board (including the names
                    of the members of the board) under subsection (h); and
                ``(2) inform each individual referred to in paragraph (1)
            that the United States will conduct a subsequent inquiry into
            the whereabouts and status of the person on or about one year
            after the date of the first official notice of the disappearance
            of the person, unless information becomes available sooner that
            may result in a change in status of the person.

        ``(k) Treatment of Determination.--Any determination of the status
    of a missing person under subsection (i) shall be treated as the
    determination of the status of the person by all departments and
    agencies of the United States.

    ``Sec. 1504. Subsequent board of inquiry

        ``(a) Additional Board.--If information that may result in a change
    of status of a person covered by a determination under section 1503(i)
    of this title becomes available within one year after the date of the
    transmission of a report with respect to the person under section
    1502(a)(2) of this title, the Secretary concerned shall

    [[Page 110 STAT. 342]]

    appoint a board under this section to conduct an inquiry into the
    information.
        ``(b) Date of Appointment.--The Secretary concerned shall appoint a
    board under this section to conduct an inquiry into the whereabouts and
    status of a missing person on or about one year after the date of the
    transmission of a report concerning the person under section 1502(a)(2)
    of this title.
        ``(c) Combined Inquiries.--If it appears to the Secretary concerned
    that the absence or status of two or more persons is factually related,
    the Secretary may appoint one board under this section to conduct the
    inquiry into the whereabouts and status of such persons.
        ``(d) Composition.--(1) A board appointed under this section shall
    be composed of at least three members as follows:
                ``(A) In the case of a board that will inquire into the
            whereabouts and status of one or more members of the armed
            forces (and no civilians described in subparagraph (B)), the
            board shall be composed of officers having the grade of major or
            lieutenant commander or above.
                ``(B) In the case of a board that will inquire into the
            whereabouts and status of one or more civilian employees of the
            Department of Defense or contractors of the Department of
            Defense (and no members of the armed forces), the board shall be
            composed of--
                        ``(i) not less than three employees of the
                    Department of Defense whose rate of annual pay is equal
                    to or greater than the rate of annual pay payable for
                    grade GS-13 of the General Schedule under section 5332
                    of title 5; and
                        ``(ii) such members of the armed forces as the
                    Secretary considers advisable.
                ``(C) In the case of a board that will inquire into the
            whereabouts and status of both one or more members of the armed
            forces and one or more civilians described in subparagraph (B)--
                        ``(i) the board shall include at least one officer
                    described in subparagraph (A) and at least one employee
                    of the Department of Defense described in subparagraph
                    (B)(i); and
                        ``(ii) the ratio of such officers to such employees
                    on the board shall be roughly proportional to the ratio
                    of the number of members of the armed forces who are
                    subjects of the board's inquiry to the number of
                    civilians who are subjects of the board's inquiry.

        ``(2) The Secretary concerned shall designate one member of a board
    appointed under this section as president of the board. The president of
    the board shall have a security clearance that affords the president
    access to all information relating to the whereabouts and status of each
    person covered by the inquiry.
        ``(3) One member of each board appointed under this subsection shall
    be an individual who--
                ``(A) has an occupational specialty similar to that of one
            or more of the persons covered by the inquiry; and
                ``(B) has an understanding of and expertise in the type of
            official activities that one or more such persons were engaged
            in at the time such person or persons disappeared.

    [[Page 110 STAT. 343]]

        ``(4) The Secretary who appoints a board under this subsection
    shall, for purposes of providing legal counsel to the board, assign to
    the board a judge advocate, or appoint to the board an attorney, with
    the same qualifications as specified in section 1503(c)(4) of this
    title.
        ``(e) Duties of Board.--A board appointed under this section to
    conduct an inquiry into the whereabouts and status of a person shall--
                ``(1) review the reports with respect to the person
            transmitted under section 1502(a)(2) of this title and submitted
            under section 1503(h) of this title;
                ``(2) collect and evaluate any document, fact, or other
            evidence with respect to the whereabouts and status of the
            person that has become available since the determination of the
            status of the person under section 1503 of this title;
                ``(3) draw conclusions as to the whereabouts and status of
            the person;
                ``(4) determine on the basis of the activities under
            paragraphs (1) and (2) whether the status of the person should
            be continued or changed; and
                ``(5) <<NOTE: Reports.>> submit to the Secretary concerned a
            report describing the findings and conclusions of the board,
            together with a recommendation for a determination by the
            Secretary concerning the whereabouts and status of the person.

        ``(f) Counsel for Missing Persons.--(1) When the Secretary concerned
    appoints a board to conduct an inquiry under this section, the Secretary
    shall appoint counsel to represent each person covered by the inquiry.
        ``(2) A person appointed as counsel under this subsection shall meet
    the qualifications and have the duties set forth in section 1503(f) of
    this title for a missing person's counsel appointed under that section.

        ``(3) The review of the report of a board on an inquiry that is
    submitted by such counsel shall be made an official part of the record
    of the board with respect to the inquiry.
        ``(g) Attendance of Family Members and Certain Other Interested
    Persons at Proceedings.--(1) With respect to any person covered by an
    inquiry under this section, the primary next of kin, other members of
    the immediate family, and any other previously designated person of the
    person may attend the proceedings of the board during the inquiry.
        ``(2) The Secretary concerned shall take reasonable actions to
    notify each individual referred to in paragraph (1) of the opportunity
    to attend the proceedings of a board. Such notice shall be provided not
    less than 60 days before the first meeting of the board.
        ``(3) An individual who receives notice under paragraph (2) shall
    notify the Secretary of the intent, if any, of that individual to attend
    the proceedings of the board not later than 21 days after the date on
    which the individual receives the notice.
        ``(4) Each individual who notifies the Secretary under paragraph (3)
    of the individual's intent to attend the proceedings of the board--
                ``(A) in the case of an individual who is the primary next
            of kin or the previously designated person, may attend the
            proceedings of the board with private counsel;
                ``(B) shall have access to the personnel file of the missing
            person, to unclassified reports, if any, of the board appointed
            under section 1503 of this title to conduct the inquiry into

    [[Page 110 STAT. 344]]

            the whereabouts and status of the person, and to any other
            unclassified information or documents relating to the
            whereabouts and status of the person;
                ``(C) shall be afforded the opportunity to present
            information at the proceedings of the board that such individual
            considers to be relevant to those proceedings; and
                ``(D) subject to paragraph (5), shall be given the
            opportunity to submit in writing an objection to any
            recommendation of the board under subsection (i) as to the
            status of the missing person.

        ``(5)(A) Individuals who wish to file objections under paragraph
    (4)(D) to any recommendation of the board shall--
                ``(i) submit a letter of intent to the president of the
            board not later than 15 days after the date on which the
            recommendations are made; and
                ``(ii) submit to the president of the board the objections
            in writing not later than 30 days after the date on which the
            recommendations are made.

        ``(B) The president of a board shall include any objections to a
    recommendation of the board that are submitted to the president of the
    board under subparagraph (A) in the report of the board containing the
    recommendation under subsection (i).
        ``(6) An individual referred to in paragraph (1) who attends the
    proceedings of a board under this subsection shall not be entitled to
    reimbursement by the United States for any costs (including travel,
    lodging, meals, local transportation, legal fees, transcription costs,
    witness expenses, and other expenses) incurred by that individual in
    attending such proceedings.
        ``(h) <<NOTE: Classified information.>> Availability of Information
    to Boards.--(1) In conducting proceedings in an inquiry under this
    section, a board may secure directly from any department or agency of
    the United States any information that the board considers necessary in
    order to conduct the proceedings.

        ``(2) Upon written request from the president of a board, the head
    of a department or agency of the United States shall release information
    covered by the request to the board. In releasing such information, the
    head of the department or agency shall--
                ``(A) declassify to an appropriate degree classified
            information; or
                ``(B) release the information in a manner not requiring the
            removal of markings indicating the classified nature of the
            information.

        ``(3)(A) If a request for information under paragraph (2) covers
    classified information that cannot be declassified, or if the
    classification markings cannot be removed before release from the
    information covered by the request, or if the material cannot be
    summarized in a manner that prevents the release of classified
    information, the classified information shall be made available only to
    the president of the board making the request and the counsel for the
    missing person appointed under subsection (f).
        ``(B) The president of a board shall close to persons who do not
    have appropriate security clearances the proceeding of the board at
    which classified information is discussed. Participants at a proceeding
    of a board at which classified information is discussed shall comply
    with all applicable laws and regulations relating to the disclosure of
    classified information. The Secretary concerned

    [[Page 110 STAT. 345]]

    shall assist the president of a board in ensuring that classified
    information is not compromised through board proceedings.
        ``(i) Recommendation on Status.--(1) Upon completion of an inquiry
    under this subsection, a board shall make a recommendation as to the
    current whereabouts and status of each missing person covered by the
    inquiry.
        ``(2) A board may not recommend under paragraph (1) that a person be
    declared dead unless in making the recommendation the board complies
    with section 1507 of this title.
        ``(j) Report.--A board appointed under this section shall submit to
    the Secretary concerned a report on the inquiry carried out by the
    board, together with the evidence considered by the board during the
    inquiry. The report may include a classified annex.
        ``(k) Actions by Secretary Concerned.--(1) Not later than 30 days
    after the receipt of a report from a board under subsection (j), the
    Secretary shall review--
                ``(A) the report;
                ``(B) the review of the report submitted to the Secretary
            under subsection (f)(3) by the counsel for each person covered
            by the report; and
                ``(C) the objections, if any, to the report submitted to the
            president of the board under subsection (g)(5).

        ``(2) In reviewing a report under paragraph (1) (including the
    objections described in subparagraph (C) of that paragraph), the
    Secretary concerned shall determine whether or not the report is
    complete and free of administrative error. If the Secretary determines
    that the report is incomplete, or that the report is not free of
    administrative error, the Secretary may return the report to the board
    for further action on the report by the board.
        ``(3) Upon a determination by the Secretary that a report reviewed
    under this subsection is complete and free of administrative error, the
    Secretary shall make a determination concerning the status of each
    person covered by the report.
        ``(l) Report to Family Members and Other Interested Persons.--Not
    later than 60 days after the date on which the Secretary concerned makes
    a determination with respect to a missing person under subsection (k),
    the Secretary shall--
                ``(1) provide the report reviewed by the Secretary in making
            the determination to the primary next of kin, the other members
            of the immediate family, and any other previously designated
            person of the person; and
                ``(2) in the case of a person who continues to be in a
            missing status, inform each individual referred to in paragraph
            (1) that the United States will conduct a further investigation
            into the whereabouts and status of the person as specified in
            section 1505 of this title.

        ``(m) Treatment of Determination.--Any determination of the status
    of a missing person under subsection (k) shall supersede the
    determination of the status of the person under section 1503 of this
    title and shall be treated as the determination of the status of the
    person by all departments and agencies of the United States.

    ``Sec. 1505. Further review

        ``(a) Subsequent Review.--The Secretary concerned shall conduct
    subsequent inquiries into the whereabouts and status of any person
    determined by the Secretary under section 1504 of this title to be in a
    missing status.

    [[Page 110 STAT. 346]]

        ``(b) Frequency of Subsequent Reviews.--(1) In the case of a missing
    person who was last known to be alive or who was last suspected of being
    alive, the Secretary shall appoint a board to conduct an inquiry with
    respect to a person under this

    subsection--
                ``(A) on or about three years after the date of the initial
            report of the disappearance of the person under section 1502(a)
            of this title; and
                ``(B) not later than every three years thereafter.

        ``(2) In addition to appointment of boards under paragraph (1), the
    Secretary shall appoint a board to conduct an inquiry with respect to a
    missing person under this subsection upon receipt of information that
    could result in a change of status of the missing person. When the
    Secretary appoints a board under this paragraph, the time for subsequent
    appointments of a board under paragraph (1)(B) shall be determined from
    the date of the receipt of such information.
        ``(3) The Secretary is not required to appoint a board under
    paragraph (1) with respect to the disappearance of any person--
                ``(A) more than 30 years after the initial report of the
            disappearance of the missing person required by section 1502 of
            this title; or
                ``(B) if, before the end of such 30-year period, the missing
            person is accounted for.

        ``(c) Action Upon Discovery or Receipt of Information.--(1) Whenever
    any United States intelligence agency or other element of the Government
    finds or receives information that may be related to a missing person,
    the information shall promptly be forwarded to the office established
    under section 1501 of this title.
        ``(2) Upon receipt of information under paragraph (1), the head of
    the office established under section 1501 of this title shall as
    expeditiously as possible ensure that the information is added to the
    appropriate case file for that missing person and notify (A) the
    designated missing person's counsel for that person, and (B) the primary
    next of kin and any previously designated person for the missing person
    of the existence of that information.
        ``(3) The head of the office established under section 1501 of this
    title, with the advice of the missing person's counsel notified under
    paragraph (2), shall determine whether the information is significant
    enough to require a board review under this section.
        ``(d) Conduct of Proceedings.--If it is determined that such a board
    should be appointed, the appointment of, and activities before, a board
    appointed under this section shall be governed by the provisions of
    section 1504 of this title with respect to a board appointed under that
    section.

    ``Sec. 1506. Personnel files

        ``(a) Information in Files.--Except as provided in subsections (b),
    (c), and (d), the Secretary concerned shall, to the maximum extent
    practicable, ensure that the personnel file of a missing person contains
    all information in the possession of the United States relating to the
    disappearance and whereabouts and status of the person.
        ``(b) Classified Information.--The Secretary concerned may withhold
    classified information from a personnel file under this section. If the
    Secretary concerned withholds classified information

    [[Page 110 STAT. 347]]

    from a personnel file, the Secretary shall ensure that the file contains
    the following:
                ``(1) A notice that the withheld information exists.
                ``(2) A notice of the date of the most recent review of the
            classification of the withheld information.

        ``(c) Protection of Privacy.--The Secretary concerned shall maintain
    personnel files under this section, and shall permit disclosure of or
    access to such files, in accordance with the provisions of section 552a
    of title 5 and with other applicable laws and regulations pertaining to
    the privacy of the persons covered by the files.
        ``(d) Privileged Information.--(1) The Secretary concerned shall
    withhold from personnel files under this section, as privileged
    information, debriefing reports provided by missing persons returned to
    United States control which are obtained
    under a promise of confidentiality made for the purpose of ensuring the
    fullest possible disclosure of information.

        ``(2) If a debriefing report contains non-derogatory information
    about the status and whereabouts of a missing person other than the
    source of the debriefing report, the Secretary concerned shall prepare
    an extract of the non-derogatory information. That extract, following a
    review by the source of the debriefing report, shall be placed in the
    personnel file of the missing person in such a manner as to protect the
    identity of the source providing the information.
        ``(3) Whenever the Secretary concerned withholds a debriefing report
    from a personnel file under this subsection, the Secretary shall ensure
    that the file contains a notice that withheld information exists.
        ``(e) Wrongful Withholding.--Except as provided in subsections (a)
    through (d), any person who knowingly and willfully withholds from the
    personnel file of a missing person any information relating to the
    disappearance or whereabouts and status of a missing person shall be
    fined as provided in title 18 or imprisoned not more than one year, or
    both.
        ``(f) Availability of Information.--The Secretary concerned shall,
    upon request, make available the contents of the personnel file of a
    missing person to the primary next of kin, the other members of the
    immediate family, or any other previously designated person of the
    person.

    ``Sec. 1507. Recommendation of status of death

        ``(a) Requirements Relating to Recommendation.--A board appointed
    under section 1503, 1504, or 1505 of this title may not recommend that a
    person be declared dead unless--
                ``(1) credible evidence exists to suggest that the person is
            dead;
                ``(2) the United States possesses no credible evidence that
            suggests that the person is alive; and
                ``(3) representatives of the United States--
                        ``(A) have made a complete search of the area where
                    the person was last seen (unless, after making a good
                    faith effort to obtain access to such area, such
                    representatives are not granted such access); and
                        ``(B) have examined the records of the government or
                    entity having control over the area where the person was
                    last seen (unless, after making a good faith effort

    [[Page 110 STAT. 348]]

                    to obtain access to such records, such representatives
                    are not granted such access).

        ``(b) <<NOTE: Reports.>> Submittal of Information on Death.--If a
    board appointed under section 1503, 1504, or 1505 of this title makes a
    recommendation that a missing person be declared dead, the board shall
    include in the report of the board with respect to the person under that
    section the following:
                ``(1) A detailed description of the location where the death
            occurred.
                ``(2) A statement of the date on which the death occurred.
                ``(3) A description of the location of the body, if
            recovered.
                ``(4) If the body has been recovered and is not identifiable
            through visual means, a certification by a practitioner of an
            appropriate forensic science that the body recovered is that of
            the missing person.

    ``Sec. 1508. Judicial review

        ``(a) Right of Review.--A person who is the primary next of kin (or
    the previously designated person) of a person who is the subject of a
    finding described in subsection (b) may obtain judicial review in a
    United States district court of that finding, but only on the basis of a
    claim that there is information that could affect the status of the
    missing person's case that was not adequately considered during the
    administrative review process under this chapter. Any such review shall
    be as provided in section 706 of title 5.
        ``(b) Findings for Which Judicial Review May Be Sought.--Subsection
    (a) applies to the following findings:
                ``(1) A finding by a board appointed under section 1504 or
            1505 of this title that a missing person is dead.
                ``(2) A finding by a board appointed under section 1509 of
            this title that confirms that a missing person formerly declared
            dead is in fact dead.

        ``(c) Subsequent Review.--Appeals from a decision of the district
    court shall be taken to the appropriate United States court of appeals
    and to the Supreme Court as provided by law.

    ``Sec. 1509. Preenactment, special interest cases

        ``(a) Review of Status.--In the case of an unaccounted for person
    covered by section 1501(c) of this title who is described in subsection
    (b), if new information that could change the status of that person is
    found or received by a United States intelligence agency, by a
    Department of Defense agency, or by a person specified in section
    1504(g) of this title, that information shall be provided to the
    Secretary of Defense with a request that the Secretary evaluate the
    information in accordance with sections 1505(c) and 1505(d) of this
    title.
        ``(b) <<NOTE: Prisoners of war. Missing in action.>> Cases Eligible
    for Review.--The cases eligible for review under this section are the
    following:
                ``(1) With respect to the Korean conflict, any unaccounted
            for person who was classified as a prisoner of war or as missing
            in action during that conflict and who (A) was known to be or
            suspected to be alive at the end of that conflict, or (B) was
            classified as missing in action and whose capture was possible.
                ``(2) With respect to the Cold War, any unaccounted for
            person who was engaged in intelligence operations (such as

    [[Page 110 STAT. 349]]

            aerial `ferret' reconnaissance missions over and around the
            Soviet Union and China) during the Cold War.
                ``(3) With respect to the Indochina war era, any unaccounted
            for person who was classified as a prisoner of war or as missing
            in action during the Indochina conflict.

        ``(c) Special Rule for Persons Classified as `KIA/BNR'.--In the case
    of a person described in subsection (b) who was classified as `killed in
    action/body not recovered', the case of that person may be reviewed
    under this section only if the new information referred to in subsection
    (a) is compelling.

        ``(d) Definitions.--In this section:
                ``(1) The term `Korean conflict' means the period beginning
            on June 27, 1950, and ending on January 31, 1955.
                ``(2) The term `Cold War' means the period beginning on
            September 2, 1945, and ending on August 21, 1991.
                ``(3) The term `Indochina war era' means the period
            beginning on July 8, 1959, and ending on May 15, 1975.

    ``Sec. 1510. Applicability to Coast Guard

        ``(a) Designated Officer To Have Responsibility.--The
    Secretary of Transportation shall designate an officer of the Department
    of Transportation to have responsibility within the Department of
    Transportation for matters relating to missing persons who are members
    of the Coast Guard.
        ``(b) Procedures.--The Secretary of Transportation shall prescribe
    procedures for the determination of the status of persons described in
    section 1501(c) of this title who are members of the Coast Guard and for
    the collection, analysis, review, and update of information on such
    persons. To the maximum extent practicable, the procedures prescribed
    under this section shall be similar to the procedures prescribed by the
    Secretary of Defense under section 1501(b) of this title.

    ``Sec. 1511. Return alive of person declared missing or dead

        ``(a) Pay and Allowances.--Any person (except for a person
    subsequently determined to have been absent without leave or a deserter)
    in a missing status or declared dead under subchapter VII of chapter 55
    of title 5 or chapter 10 of title 37 or by a board appointed under this
    chapter who is found alive and returned to the control of the United
    States shall be paid for the full time of the absence of the person
    while given that status or declared dead under the law and regulations
    relating to the pay and allowances of persons returning from a missing
    status.
        ``(b) Effect on Gratuities Paid as a Result of Status.--Subsection
    (a) shall not be interpreted to invalidate or otherwise affect the
    receipt by any person of a death gratuity or other payment from the
    United States on behalf of a person referred to in subsection (a) before
    the date of the enactment of this chapter.

    ``Sec. 1512. Effect on State law

        ``(a) Nonpreemption of State Authority.--Nothing in this chapter
    shall be construed to invalidate or limit the power of any State court
    or administrative entity, or the power of any court or administrative
    entity of any political subdivision thereof, to find or declare a person
    dead for purposes of such State or political subdivision.

    [[Page 110 STAT. 350]]

        ``(b) State Defined.--In this section, the term `State' includes the
    District of Columbia, the Commonwealth of Puerto Rico, and any territory
    or possession of the United States.

    ``Sec. 1513. Definitions

        ``In this chapter:
                ``(1) The term `missing person' means--
                        ``(A) a member of the Armed Forces on active duty
                    who is in a missing status; or
                        ``(B) a civilian employee of the Department of
                    Defense or an employee of a contractor of the Department
                    of Defense who serves with or accompanies the Armed
                    Forces in the field under orders and who is in a missing
                    status.
                ``(2) The term `missing status' means the status of a
            missing person who is determined to be absent in a category of
            any of the following:
                        ``(A) Missing.
                        ``(B) Missing in action.
                        ``(C) Interned in a foreign country.
                        ``(D) Captured.
                        ``(E) Beleaguered.
                        ``(F) Besieged.
                        ``(G) Detained in a foreign country against that
                    person's will.
                ``(3) The term `accounted for', with respect to a person in
            a missing status, means that--
                        ``(A) the person is returned to United States
                    control alive;
                        ``(B) the remains of the person are recovered and,
                    if not identifiable through visual means as those of the
                    missing person, are identified as those of the missing
                    person by a practitioner of an appropriate forensic
                    science; or
                        ``(C) credible evidence exists to support another
                    determination of the person's status.
                ``(4) The term `primary next of kin', in the case of a
            missing person, means the individual authorized to direct
            disposition of the remains of the person under section 1482(c)
            of this title.
                ``(5) The term `member of the immediate family', in the case
            of a missing person, means the following:
                        ``(A) The spouse of the person.
                        ``(B) A natural child, adopted child, stepchild, or
                    illegitimate child (if acknowledged by the person or
                    parenthood has been established by a court of competent
                    jurisdiction) of the person, except that if such child
                    has not attained the age of 18 years, the term means a
                    surviving parent or legal guardian of such child.
                        ``(C) A biological parent of the person, unless
                    legal custody of the person by the parent has been
                    previously terminated by reason of a court decree or
                    otherwise under law and not restored.
                        ``(D) A brother or sister of the person, if such
                    brother or sister has attained the age of 18 years.
                        ``(E) Any other blood relative or adoptive relative
                    of the person, if such relative was given sole legal
                    custody of the person by a court decree or otherwise
                    under law

    [[Page 110 STAT. 351]]

                    before the person attained the age of 18 years and such
                    custody was not subsequently terminated before that
                    time.
                ``(6) The term `previously designated person', in the case
            of a missing person, means an individual designated by the
            person under section 655 of this title for purposes of this
            chapter.
                ``(7) The term `classified information' means any
            information the unauthorized disclosure of which (as determined
            under applicable law and regulations) could reasonably be
            expected to damage the national security.
                ``(8) The term `theater component commander' means, with
            respect to any of the combatant commands, an officer of any of
            the armed forces who (A) is commander of all forces of that
            armed force assigned to that combatant command, and (B) is
            directly subordinate to the commander of the combatant
            command.''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part II of subtitle A, of title 10, United States Code,
    are amended by inserting after the item relating to chapter 75 the
    following new item:

    ``76. Missing Persons............................................1501''.

        (c) Conforming Amendments.--Chapter 10 of title 37, United States
    Code, is amended as follows:
                (1) Section 555 is amended--
                        (A) in subsection (a), by striking out ``When a
                    member'' and inserting in lieu thereof ``Except as
                    provided in subsection (d), when a member''; and
                        (B) by adding at the end the following new
                    subsection:

        ``(d) This section does not apply in a case to which section 1502 of
    title 10 applies.''.
                (2) Section 552 is amended--
                        (A) in subsection (a), by striking out ``for all
                    purposes,'' in the second sentence of the matter
                    following paragraph (2) and all that follows through the
                    end of the sentence and inserting in lieu thereof ``for
                    all purposes.'';
                        (B) in subsection (b), by inserting ``or under
                    chapter 76 of title 10'' before the period at the end;
                    and
                        (C) in subsection (e), by inserting ``or under
                    chapter 76 of title 10'' after ``section 555 of this
                    title''.
                (3) Section 553 is amended--
                        (A) in subsection (f), by striking out ``the date
                    the Secretary concerned receives evidence that'' and
                    inserting in lieu thereof ``the date on which, in a case
                    covered by section 555 of this title, the Secretary
                    concerned receives evidence, or, in a case covered by
                    chapter 76 of title 10, the Secretary concerned
                    determines pursuant to that chapter, that''; and
                        (B) in subsection (g), by inserting ``or under
                    chapter 76 of title 10'' after ``section 555 of this
                    title''.
                (4) Section 556 is amended--
                        (A) in subsection (a), by inserting after paragraph
                    (7) the following:

    ``Paragraphs (1), (5), (6), and (7) only apply with respect to a case to
    which section 555 of this title applies.'';

    [[Page 110 STAT. 352]]

                        (B) in subsection (b), by inserting ``, in a case to
                    which section 555 of this title applies,'' after ``When
                    the Secretary concerned''; and
                        (C) in subsection (h)--
                              (i) in the first sentence, by striking out
                          ``status'' and inserting in lieu thereof ``pay'';
                          and
                              (ii) in the second sentence, by inserting ``in
                          a case to which section 555 of this title
                          applies'' after ``under this section''.

        (d) Designation of Persons Having Interest in Status of Service
    Members.--(1) Chapter 37 of title 10, United States Code, is amended by
    adding at the end the following new section:
    ``Sec. 655. Designation of persons having interest in status of a
                      missing member

        ``(a) The Secretary concerned shall, upon the enlistment or
    appointment of a person in the armed forces, require that the person
    specify in writing the person or persons, if any, other than that
    person's primary next of kin or immediate family, to whom information on
    the whereabouts and status of the member shall be provided if such
    whereabouts and status are investigated under chapter 76 of this title.
    The Secretary shall periodically, and whenever the member is deployed as
    part of a contingency operation or in other circumstances specified by
    the Secretary, require that such designation be reconfirmed, or
    modified, by the member.
        ``(b) The Secretary concerned shall, upon the request of a member,
    permit the member to revise the person or persons specified by the
    member under subsection (a) at any time. Any such revision shall be in
    writing.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``655. Designation of persons having interest in status of a missing
               member.''.

        (e) <<NOTE: 5 USC 5561 note.>> Accounting for Civilian Employee and
    Contractors of the United States.--(1) The Secretary of State shall
    carry out a comprehensive study of the provisions of subchapter VII of
    chapter 55 of title 5, United States Code (commonly referred to as the
    ``Missing Persons Act of 1942'') (5 U.S.C. 5561 et seq.) and any other
    law or regulation establishing procedures for the accounting for of
    civilian employees of the United States or contractors of the United
    States who serve with or accompany the Armed Forces in the field. The
    purpose of the study shall be to determine the means, if any, by which
    those procedures may be improved.

        (2) The Secretary of State shall carry out the study required under
    paragraph (1) in consultation with the Secretary of Defense, the
    Secretary of Transportation, the Director of Central Intelligence, and
    the heads of such other departments and agencies of the United States as
    the President designates for that purpose.
        (3) In carrying out the study, the Secretary of State shall examine
    the procedures undertaken when a civilian employee referred to in
    paragraph (1) becomes involuntarily absent as a result of a hostile
    action, or under circumstances suggesting that the involuntary absence
    is a result of a hostile action, and whose status is undetermined or who
    is unaccounted for, including procedures for--
                (A) search and rescue for the employee;
                (B) determining the status of the employee;
                (C) reviewing and changing the status of the employee;

    [[Page 110 STAT. 353]]

                (D) determining the rights and benefits accorded to the
            family of the employee; and
                (E) <<NOTE: Records.>> maintaining and providing appropriate
            access to the records of the employee and the investigation into
            the status of the employee.

        (4) <<NOTE: Reports.>> Not later than one year after the date of the
    enactment of this Act, the Secretary of State 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 study carried
    out by the Secretary under this subsection. The report shall include the
    recommendations, if any, of the Secretary for legislation to improve the
    procedures covered by the study.
    SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR MILITARY
                            SUPPORT.

        Section 102 of the National Security Act of 1947 (50 U.S.C. 403) is
    amended by adding at the end the following:
        ``(e) In the event that neither the Director nor Deputy Director of
    Central Intelligence is a commissioned officer of the Armed Forces, a
    commissioned officer of the Armed Forces appointed to the position of
    Associate Director of Central Intelligence for Military Support, while
    serving in such position, shall not be counted against the numbers and
    percentages of commissioned officers of the rank and grade of such
    officer authorized for the armed force of which such officer is a
    member.''.

          Subtitle G--Support for Non-Department of Defense Activities

    SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

        (a) Repeal of Civil-Military Cooperative Action Program.--The
    following provisions of law are repealed:
                (1) Section 410 of title 10, United States Code.
                (2) Section 1081(a) of the National Defense Authorization
            Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 410
            note).

        (b) Repeal of Related Provision.--Section 1045 of the National
    Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10
    U.S.C. 410 note), relating to a pilot outreach program to reduce demand
    for illegal drugs, is repealed.
        (c) Technical and Conforming Amendments.--Chapter 20 of title 10,
    United States Code, is amended--
                (1) by striking out the table of subchapters after the
            chapter heading;
                (2) by striking out the subchapter heading for subchapter I;
            and
                (3) by striking out the subchapter heading for subchapter II
            and the table of sections following that subchapter heading.
    SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT AND
                            SERVICES FOR ELIGIBLE ORGANIZATIONS AND
                            ACTIVITIES OUTSIDE THE DEPARTMENT OF
                            DEFENSE.

        (a) In General.--(1) Chapter 101 of title 10, United States Code, is
    amended by adding at the end the following new section:

    [[Page 110 STAT. 354]]

    ``Sec. 2012. Support and services for eligible organizations and
                        activities outside Department of Defense

        ``(a) <<NOTE: Regulations.>> Authority To Provide Services and
    Support.--Under regulations prescribed by the Secretary of Defense, the
    Secretary of a military department may in accordance with this section
    authorize units or individual members of the armed forces under that
    Secretary's jurisdiction to provide support and services to non-
    Department of Defense organizations and activities specified in
    subsection (e), but only if--
                ``(1) such assistance is authorized by a provision of law
            (other than this section); or
                ``(2) the provision of such assistance is incidental to
            military training.

        ``(b) Scope of Covered Activities Subject to Section.--This section
    does not--
                ``(1) apply to the provision by the Secretary concerned,
            under regulations prescribed by the Secretary of Defense, of
            customary community relations and public affairs activities
            conducted in accordance with Department of Defense policy; or
                ``(2) prohibit the Secretary concerned from encouraging
            members of the armed forces under the Secretary's jurisdiction
            to provide volunteer support for community relations activities
            under regulations prescribed by the Secretary of Defense.

        ``(c) Requirement for Specific Request.--Assistance under subsection
    (a) may only be provided if--
                ``(1) the assistance is requested by a responsible official
            of the organization to which the assistance is to be provided;
            and
                ``(2) the assistance is not reasonably available from a
            commercial entity or (if so available) the official submitting
            the request for assistance certifies that the commercial entity
            that would otherwise provide such services has agreed to the
            provision of such services by the armed forces.

        ``(d) Relationship to Military Training.--(1) Assistance under
    subsection (a) may only be provided if the following requirements are
    met:
                ``(A) The provision of such assistance--
                        ``(i) in the case of assistance by a unit, will
                    accomplish valid unit training requirements; and
                        ``(ii) in the case of assistance by an individual
                    member, will involve tasks directly related to the
                    specific military occupational specialty of the member.
                ``(B) The provision of such assistance will not adversely
            affect the quality of training or otherwise interfere with the
            ability of a member or unit of the armed forces to perform the
            military functions of the member or unit.
                ``(C) The provision of such assistance will not result in a
            significant increase in the cost of the training.

        ``(2) Subparagraph (A)(i) of paragraph (1) does not apply in a case
    in which the assistance to be provided consists primarily of military
    manpower and the total amount of such assistance in the case of a
    particular project does not exceed 100 man-hours.
        ``(e) Eligible Entities.--The following organizations and activities
    are eligible for assistance under this section:
                ``(1) Any Federal, regional, State, or local governmental
            entity.

    [[Page 110 STAT. 355]]

                ``(2) Youth and charitable organizations specified in
            section 508 of title 32.
                ``(3) Any other entity as may be approved by the Secretary
            of Defense on a case-by-case basis.

        ``(f) Regulations.--The Secretary of Defense shall prescribe
    regulations governing the provision of assistance under this section.
    The regulations shall include the following:
                ``(1) Rules governing the types of assistance that may be
            provided.
                ``(2) Procedures governing the delivery of assistance that
            ensure, to the maximum extent practicable, that such assistance
            is provided in conjunction with, rather than separate from,
            civilian efforts.
                ``(3) Procedures for appropriate coordination with civilian
            officials to ensure that the assistance--
                        ``(A) meets a valid need; and
                        ``(B) does not duplicate other available public
                    services.
                ``(4) Procedures to ensure that Department of Defense
            resources are not applied exclusively to the program receiving
            the assistance.

        ``(g) Advisory Councils.--(1) The Secretary of Defense shall
    encourage the establishment of advisory councils at regional, State, and
    local levels, as appropriate, in order to obtain recommendations and
    guidance concerning assistance under this section from persons who are
    knowledgeable about regional, State, and local conditions and needs.
        ``(2) The advisory councils should include officials from relevant
    military organizations, representatives of appropriate local, State, and
    Federal agencies, representatives of civic and social service
    organizations, business representatives, and labor representatives.
        ``(3) The Federal Advisory Committee Act (5 U.S.C. App.) shall not
    apply to such councils.
        ``(h) Construction of Provision.--Nothing in this section shall be
    construed as authorizing--
                ``(1) the use of the armed forces for civilian law
            enforcement purposes or for response to natural or manmade
            disasters; or
                ``(2) the use of Department of Defense personnel or
            resources for any program, project, or activity that is
            prohibited by law.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2012. Support and services for eligible organizations and activities
               outside Department of Defense.''.

    SEC. 573.  <<NOTE: 32 USC 501 note.>> NATIONAL GUARD CIVILIAN
                            YOUTH OPPORTUNITIES PILOT PROGRAM.

        (a) Termination.--The authority under subsection (a) of section 1091
    of the National Defense Authorization Act for Fiscal Year 1993 (Public
    Law 102-484; 32 U.S.C. 501 note) to carry out a pilot program under that
    section is hereby continued through the end of the 18-month period
    beginning on the date of the enactment of this Act and such authority
    shall terminate as of the end of that period.
        (b) Limitation on Number of Programs.--During the period beginning
    on the date of the enactment of this Act and ending

    [[Page 110 STAT. 356]]

    on the termination of the pilot program under subsection (a), the number
    of programs carried out under subsection (d) of that section as part of
    the pilot program may not exceed the number of such programs as of
    September 30, 1995.
    SEC. 574.  <<NOTE: 10 USC 2012 note.>> TERMINATION OF FUNDING FOR
                            OFFICE OF CIVIL-MILITARY PROGRAMS IN
                            OFFICE OF THE SECRETARY OF DEFENSE.

        No funds may be obligated or expended after the date of the
    enactment of this Act (1) for the office that as of the date of the
    enactment of this Act is designated, within the Office of the Assistant
    Secretary of Defense for Reserve Affairs, as the Office of Civil-
    Military Programs, or (2) for any other entity within the Office of the
    Secretary of Defense that has an exclusive or principal mission of
    providing centralized direction for activities under section 2012 of
    title 10, United States Code, as added by section 572.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    SEC. 601. <<NOTE: 37 USC 1009 note.>> MILITARY PAY RAISE FOR FISCAL YEAR
                1996.

        (a) Rescission of Prior Section 1009 Adjustment.--The adjustment
    made as of January 1, 1996, pursuant to section 4 of Executive Order No.
    12984 (issued December 28, 1995), in elements of compensation of members
    of the uniformed services pursuant to section 1009 of title 37, United
    States Code, is hereby rescinded.
        (b) Increase in Basic Pay and BAS.--The rates of basic pay and basic
    allowance for subsistence of members of the uniformed services, as in
    effect on December 31, 1995, are hereby increased by 2.4 percent.
        (c) Increase in BAQ.--The rates of basic allowance for quarters of
    members of the uniformed services, as in effect on December 31, 1995,
    are hereby increased by 5.2 percent.
        (d) Effective Date.--This section shall take effect as of January 1,
    1996.
    SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR
                            MEMBERS RESIDING WITHOUT DEPENDENTS IN
                            GOVERNMENT QUARTERS.

        (a) Percentage Limitation.--Subsection (b) of section 402 of title
    37, United States Code, is amended by adding after the last sentence the
    following new paragraph:
        ``(4) In the case of enlisted members of the Army, Navy, Air Force,
    or Marine Corps who, when present at their permanent duty station,
    reside without dependents in Government quarters, the Secretary
    concerned may not provide a basic allowance for subsistence to more than
    12 percent of such members under the jurisdiction of the Secretary
    concerned. The Secretary concerned may exceed such percentage if the
    Secretary determines that compliance would increase costs to the
    Government, would impose financial hardships on members otherwise
    entitled to a basic allowance for subsistence, or would reduce the
    quality of life for such members. This paragraph shall not apply to
    members described in the first sentence when the members are not
    residing at their permanent

    [[Page 110 STAT. 357]]

    duty station. The Secretary concerned shall achieve the percentage
    limitation specified in this paragraph as soon as possible after the
    date of the enactment of this paragraph, but in no case later than
    September 30, 1996.''.
        (b) Stylistic Amendments.--Such subsection is further

    amended--
                (1) by redesignating paragraphs (1), (2), and (3) as
            subparagraphs (A), (B), and (C);
                (2) by inserting ``(1)'' after ``(b)'';
                (3) by designating the text composed of the second, third,
            and fourth sentences as paragraph (2); and
                (4) by designating the text composed of the fifth and sixth
            sentences as paragraph (3).

        (c) Conforming Amendments.--(1) Subsection (e) of such section is
    amended--
                (A) in paragraph (1), by striking out ``the third sentence
            of subsection (b)'' and inserting in lieu thereof ``subsection
            (b)(2)''; and
                (B) in paragraph (2), by striking out ``subsection (b)'' and
            inserting in lieu thereof ``subsection (b)(2)''.

        (2) Section 1012 of title 37, United States Code, is amended by
    striking out ``the last sentence of section 402(b)'' and inserting in
    lieu thereof ``section 402(b)(3)''.
        (d) Report Required.--Not later than March 31, 1996, the Secretary
    of Defense shall submit to Congress a report identifying, for the Army,
    Navy, Air Force, and Marine Corps--
                (1) the number of members who reside without dependents in
            Government quarters at their permanent duty stations and receive
            a basic allowance for subsistence under section 402 of title 37,
            United States Code;
                (2) such number as a percentage of the total number of
            members who reside without dependents in Government

            quarters;
                (3) a recommended maximum percentage of the members residing
            without dependents in Government quarters at their permanent
            duty station who should receive a basic allowance for
            subsistence; and
                (4) the reasons such maximum percentage is recommended.
    SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD OF
                            ASSIGNMENT TO INADEQUATE QUARTERS.

        (a) Election Authorized.--Section 403(b) of title 37, United States
    Code, is amended--
                (1) by inserting ``(1)'' after ``(b)'';
                (2) by designating the second sentence as paragraph (2) and,
            as so designated, by striking out ``However, subject'' and
            inserting in lieu thereof ``Subject''; and
                (3) by adding at the end the following new paragraph:

        ``(3) A member without dependents who is in pay grade E-6 and who is
    assigned to quarters of the United States that do not meet the minimum
    adequacy standards established by the Department of Defense for members
    in such pay grade, or to a housing facility under the jurisdiction of a
    uniformed service that does not meet such standards, may elect not to
    occupy such quarters or facility and instead to receive the basic
    allowance for quarters prescribed for the member's pay grade by this
    section.''.

    [[Page 110 STAT. 358]]

        (b) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made
    by this section shall take effect on July 1, 1996.
    SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS IN
                            PAY GRADE E-6 WHO ARE ASSIGNED TO SEA
                            DUTY.

        (a) Payment Authorized.--Section 403(c)(2) of title 37, United
    States Code, is amended--
                (1) in the first sentence, by striking out ``E-7'' and
            inserting in lieu thereof ``E-6''; and
                (2) in the second sentence, by striking out ``E-6'' and
            inserting in lieu thereof ``E-5''.

        (b) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made
    by this section shall take effect on July 1, 1996.
    SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING ALLOWANCE
                            FOR CERTAIN MEMBERS.

        (a) Limitation on Reduction in VHA.--(1) Subsection (c)(3) of
    section 403a of title 37, United States Code, is amended by adding at
    the end the following new sentence: ``However, so long as a member of a
    uniformed service retains uninterrupted eligibility to receive a
    variable housing allowance within an area and the member's certified
    housing costs are not reduced (as indicated by certifications provided
    by the member under subsection (b)(4)), the monthly amount of a variable
    housing allowance under this section for the member within that area may
    not be reduced as a result of systematic adjustments required by changes
    in housing costs within that area.''.
        (2) <<NOTE: Applicability. 37 USC 403a note.>> The amendment made by
    paragraph (1) shall apply for fiscal years after fiscal year 1995.

        (b) Effect on Total Amount Available for VHA.--Subsection (d)(3) of
    such section is amended by inserting after the first sentence the
    following new sentence: ``In addition, the total amount determined under
    paragraph (1) shall be adjusted to ensure that sufficient amounts are
    available to allow payment of any additional amounts of variable housing
    allowance necessary as a result of the requirements of the second
    sentence of subsection (c)(3).''.
        (c) Report on Implementation.--Not later than June 1, 1996, the
    Secretary of Defense shall submit to Congress a report describing the
    procedures to be used to implement the amendments made by this section
    and the costs of such amendments.
        (d) <<NOTE: Reports.>> Resolving VHA Inadequacies in High Housing
    Cost Areas.--If the Secretary of Defense determines that, despite the
    amendments made by this section, inadequacies exist in the provision of
    variable housing allowances under section 403a of title 37, United
    States Code, the Secretary shall submit to Congress a report containing
    a legislative proposal to address the inadequacies. The Secretary shall
    make the determination required by this subsection and submit the
    report, if necessary, not later than May 31, 1996.
    SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR FAMILY
                            SEPARATION ALLOWANCE.

        Section 427(b)(4) of title 37, United States Code, is amended in the
    first sentence by inserting ``paragraph (1)(A) of'' after ``not entitled
    to an allowance under''.

    [[Page 110 STAT. 359]]

               Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

        (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title
    37, United States Code, is amended by striking out ``September 30,
    1996'' and inserting in lieu thereof ``September 30, 1997''.
        (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37,
    United States Code, is amended by striking out ``September 30, 1996''
    and inserting in lieu thereof ``September 30, 1997''.
        (c) Selected Reserve Affiliation Bonus.--Section 308e(e) of title
    37, United States Code, is amended by striking out ``September 30,
    1996'' and inserting in lieu thereof ``September 30, 1997''.
        (d) Ready Reserve Enlistment and Reenlistment Bonus.--Section
    308h(g) of title 37, United States Code, is amended by striking out
    ``September 30, 1996'' and inserting in lieu thereof ``September 30,
    1997''.
        (e) Prior Service Enlistment Bonus.--Section 308i(i) of title 37,
    United States Code, is amended by striking out ``September 30, 1996''
    and inserting in lieu thereof ``September 30, 1997''.
    SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 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, 1996'' and inserting in lieu thereof ``September 30, 1997''.
        (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking out ``September 30,
    1996'' and inserting in lieu thereof ``September 30, 1997''.
        (c) Incentive Special Pay for Nurse Anesthetists.--Section
    302e(a)(1) of title 37, United States Code, is amended by striking out
    ``September 30, 1996'' and inserting in lieu thereof ``September 30,
    1997''.
    SEC. 613. EXTENSION OF AUTHORITY 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, 1995,''
    and inserting in lieu thereof ``September 30, 1997''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of title
    37, United States Code, is amended by striking out ``September 30,
    1996'' and inserting in lieu thereof ``September 30, 1997''.
        (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and
    308f(c) of title 37, United States Code, are each

    amended by striking out ``September 30, 1996'' and inserting in lieu
    thereof ``September 30, 1997''.
        (d) Special Pay for Enlisted Members of the Selected Reserve
    Assigned to Certain High Priority Units.--Section 308d(c) of title 37,
    United States Code, is amended by striking out ``September 30, 1996''
    and inserting in lieu thereof ``September 30, 1997''.

    [[Page 110 STAT. 360]]

        (e) 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, 1996'' and inserting in lieu
    thereof ``September 30, 1997''.
        (f) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,
    United States Code, is amended by striking out ``September 30, 1996''
    and inserting in lieu thereof ``September 30, 1997''.
        (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title
    37, United States Code, is amended by striking out ``October 1, 1996''
    and inserting in lieu thereof ``October 1, 1997''.
        (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, 1996'' and
    inserting in lieu thereof ``October 1, 1997''.
        (i) <<NOTE: 37 USC 3016 note.>> Coverage of Period of Lapsed
    Agreement Authority.--(1) In the case of an officer described in section
    301b(b) of title 37, United States Code, who executes an agreement
    described in paragraph (2) during the 90-day period beginning on the
    date of the enactment of this Act, the Secretary concerned may treat the
    agreement for purposes of the retention bonus authorized under the
    agreement as having been executed and accepted on the first date on
    which the officer would have qualified for such an agreement had the
    amendment made by subsection (a) taken effect on October 1, 1995.

        (2) An agreement referred to in this subsection is a service
    agreement with the Secretary concerned that is a condition for the
    payment of a retention bonus under section 301b of title 37, United
    States Code.
        (3) For purposes of this subsection, the term ``Secretary
    concerned'' has the meaning given that term in section 101(5) of title
    37, United States Code.
    SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITICALLY
                            SHORT WARTIME HEALTH SPECIALISTS IN THE
                            SELECTED RESERVES.

        (a) Special Pay Authorized.--(1) Chapter 5 of title 37, United
    States Code, is amended by inserting after section 302f the following
    new section:
    ``Sec. 302g. Special pay: Selected Reserve health care
                      professionals in critically short wartime
                      specialties

        ``(a) Special Pay Authorized.--An officer of a reserve component of
    the armed forces described in subsection (b) who executes a written
    agreement under which the officer agrees to serve in the Selected
    Reserve of an armed force for a period of not less than one year nor
    more than three years, beginning on the date the officer accepts the
    award of special pay under this section, may be paid special pay at an
    annual rate not to exceed $10,000.
        ``(b) Eligible Officers.--An officer referred to in subsection (a)
    is an officer in a health care profession who is qualified in a
    specialty designated by regulations as a critically short wartime
    specialty.
        ``(c) Time for Payment.--Special pay under this section shall be
    paid annually at the beginning of each twelve-month period for which the
    officer has agreed to serve.

    [[Page 110 STAT. 361]]

        ``(d) Refund Requirement.--An officer who voluntarily terminates
    service in the Selected Reserve of an armed force before the end of the
    period for which a payment was made to such officer under this section
    shall refund to the United States the full amount of the payment made
    for the period on which the payment was based.
        ``(e) Inapplicability of Discharge in Bankruptcy.--A discharge in
    bankruptcy under title 11 that is entered less than five years after the
    termination of an agreement under this section does not discharge the
    person receiving special pay under the agreement from the debt arising
    under the agreement.
        ``(f) Termination of Agreement Authority.--No agreement under this
    section may be entered into after September 30, 1997.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 302f the
    following new item:

    ``302g. Special pay: Selected Reserve health care professionals in
               critically short wartime specialties.''.

        (b) Conforming Amendment.--Section 303a of title 37, United States
    Code, is amended by striking out ``302, 302a, 302b, 302c, 302d, 302e,''
    each place it appears and inserting in lieu thereof ``302 through
    302g,''.
        (c) Conforming Repeal.--(1) Section 613 of the National Defense
    Authorization Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302
    note) is repealed.
        (2) <<NOTE: 37 USC 302 note.>> The provisions of section 613 of the
    National Defense Authorization Act, Fiscal Year 1989, as in effect on
    the day before the date of the enactment of this Act, shall continue to
    apply to agreements entered into under such section before such date.
    SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS AND
                            ENLISTED MEMBERS SERVING AS AIR WEAPONS
                            CONTROLLERS.

        (a) Inclusion of Additional Members.--Subsection (a)(11) of section
    301 of title 37, United States Code, is amended by striking out ``an
    officer (other than a warrant officer)'' and inserting in lieu thereof
    ``a member''.
        (b) Calculation of Hazardous Duty Incentive Pay.--The table in
    subparagraph (A) of subsection (c)(2) of such section is amended to read
    as follows:

    ----------------------------------------------------------------------------------------------------------------
                                                       Years of service as an air weapons controller
                                     -------------------------------------------------------------------------------
               ``Pay grade              2 or
                                        less     Over 2    Over 3    Over 4    Over 6    Over 8    Over 10
    ----------------------------------------------------------------------------------------------------------------
    ``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200
    ``O-6...........................       225       250       300       325       350       350       350
    ``O-5...........................       200       250       300       325       350       350       350
    ``O-4...........................       175       225       275       300       350       350       350
    ``O-3...........................       125       156       188       206       350       350       350
    ``O-2...........................       125       156       188       206       250       300       300
    ``O-1...........................       125       156       188       206       250       250       250
    ``W-4...........................       200       225       275       300       325       325       325
    ``W-3...........................       175       225       275       300       325       325       325
    ``W-2...........................       150       200       250       275       325       325       325
    ``W-1...........................       100       125       150       175       325       325       325
    ``E-9...........................       200       225       250       275       300       300       300
    ``E-8...........................       200       225       250       275       300       300       300
    ``E-7...........................       175       200       225       250       275       275       275
    ``E-6...........................       156       175       200       225       250       250       250
    ``E-5...........................       125       156       175       188       200       200       200
    ``E-4 and below.................       125       156       175       188       200       200       200
                                     -------------------------------------------------------------------------------

    [[Page 110 STAT. 362]]

    ----------------------------------------------------------------------------------------------------------------
                                                 Years of service as an air weapons controller--Continued
         ``Pay grade--Continued      -------------------------------------------------------------------------------
                                       Over 12   Over 14   Over 16   Over 18   Over 20   Over 22   Over 24   Over 25
    ----------------------------------------------------------------------------------------------------------------
    ``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200      $110
    ``O-6...........................       350       350       350       350       300       250       250       225
    ``O-5...........................       350       350       350       350       300       250       250       225
    ``O-4...........................       350       350       350       350       300       250       250       225
    ``O-3...........................       350       350       350       300       275       250       225       200
    ``O-2...........................       300       300       300       275       245       210       200       180
    ``O-1...........................       250       250       250       245       210       200       180       150
    ``W-4...........................       325       325       325       325       276       250       225       200
    ``W-3...........................       325       325       325       325       325       250       225       200
    ``W-2...........................       325       325       325       325       275       250       225       200
    ``W-1...........................       325       325       325       325       275       250       225       200
    ``E-9...........................       300       300       300       300       275       230       200       200
    ``E-8...........................       300       300       300       300       265       230       200       200
    ``E-7...........................       300       300       300       300       265       230       200       200
    ``E-6...........................       300       300       300       300       265       230       200       200
    ``E-5...........................       250       250       250       250       225       200       175       150
    ``E-4 and below.................       200       200       200       200       175       150       125    125''.
    ----------------------------------------------------------------------------------------------------------------

        (c) Conforming Amendments.--Subsection (c)(2) of such section is
    further amended--
                (1) by striking out ``an officer'' each place it appears and
            inserting in lieu thereof ``a member''; and
                (2) by striking out ``the officer'' each place it appears
            and inserting in lieu thereof ``the member''.

    SEC. 616. AVIATION CAREER INCENTIVE PAY.

        (a) Years of Operational Flying Duties Required.--Paragraph (4) of
    section 301a(a) of title 37, United States Code, is amended in the first
    sentence by striking out ``9'' and inserting in lieu thereof ``8''.
        (b) Exercise of Waiver Authority.--Paragraph (5) of such section is
    amended by inserting after the second sentence the following new
    sentence: ``The Secretary concerned may not delegate the authority in
    the preceding sentence to permit the payment of incentive pay under this
    subsection.''.
    SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY FOR
                            NURSES.

        Section 302c(d)(1) of title 37, United States Code, is amended--
                (1) by striking out ``or'' after ``Air Force,''; and
                (2) by inserting before the semicolon the following: ``, an
            officer of the Nurse Corps of the Army or Navy, or an officer of
            the Air Force designated as a nurse''.
    SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREW
                            MEMBERS OF SHIPS DESIGNATED AS TENDERS.

        Subparagraph (A) of section 305a(d)(1) of title 37, United States
    Code, is amended to read as follows:
                ``(A) while permanently or temporarily assigned to a ship,
            ship-based staff, or ship-based aviation unit and--
                        ``(i) while serving on a ship the primary mission of
                    which is accomplished while under way;
                        ``(ii) while serving as a member of the off-crew of
                    a two-crewed submarine; or
                        ``(iii) while serving as a member of a tender-class
                    ship (with the hull classification of submarine or
                    destroyer); or''.

    [[Page 110 STAT. 363]]

    SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY
                            FOR ENLISTED MEMBERS SERVING AS
                            RECRUITERS.

        (a) Special Maximum Rate for Recruiters.--Section 307(a) of title
    37, United States Code, is amended by adding at the end the following
    new sentence: ``In the case of a member who is serving as a military
    recruiter and is eligible for special duty assignment pay under this
    subsection on account of such duty, the Secretary concerned may increase
    the monthly rate of special duty assignment pay for the member to not
    more than $375.''.
        (b) <<NOTE: 37 USC 307 note.>> Effective Date.--The amendment made
    by subsection (a) shall take effect on January 1, 1996.

                Subtitle C--Travel and Transportation Allowances

    SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF
                            ALLOWANCES ON BASIS OF MILEAGE TABLES.

        Section 404(d)(1)(A) of title 37, United States Code, is amended by
    striking out ``, based on distances established over the shortest
    usually traveled route, under mileage tables prepared under the
    direction of the Secretary of Defense''.

    SEC. 622. DEPARTURE ALLOWANCES.

        (a) Eligibility When Evacuation Authorized But Not Ordered.--Section
    405a(a) of title 37, United States Code, is amended by striking out
    ``ordered'' each place it appears and inserting in lieu thereof
    ``authorized or ordered''.
        (b) <<NOTE: 37 USC 405a note.>> Application of Amendment.--The
    amendment made by subsection (a) shall apply with respect to persons
    authorized or ordered to depart as described in section 405a(a) of title
    37, United States Code, on or after October 1, 1995.
    SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER'S
                            STATION OVERSEAS AFTER LOSS OF DEPENDENT
                            STATUS WHILE OVERSEAS.

        Section 406(h)(1) of title 37, United States Code, is amended in the
    last sentence--
                (1) by striking out ``who became 21 years of age'' and
            inserting in lieu thereof ``who, by reason of age or graduation
            from (or cessation of enrollment in) an institution of higher
            education, would otherwise cease to be a dependent of the
            member''; and
                (2) by inserting ``still'' after ``shall''.
    SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN
                            CONNECTION WITH BASE REALIGNMENTS AND
                            CLOSURES.

        (a) Dislocation Allowance Authorized.--Subsection (a) of section 407
    of title 37, United States Code, is amended--
                (1) by striking out ``or'' at the end of paragraph (3);
                (2) by striking out the period at the end of paragraph
            (4)(B) and inserting in lieu thereof ``; or''; and
                (3) by inserting after paragraph (4)(B) the following new
            paragraph:

    [[Page 110 STAT. 364]]

                ``(5) the member is ordered to move in connection with the
            closure or realignment of a military installation and, as a
            result, the member's dependents actually move or, in the case of
            a member without dependents, the member actually moves.''.

        (b) Conforming Amendments.--(1) The last sentence of such subsection
    is amended--
                (A) by striking out ``clause (3) or (4)(B)'' and inserting
            in lieu thereof ``paragraph (3) or (4)(B)''; and
                (B) by striking out ``clause (1)'' and inserting in lieu
            thereof ``paragraph (1) or (5)''.

        (2) Subsection (b) of such section is amended--
                (A) by striking out ``subsection (a)(3) or (a)(4)(B)'' in
            the first sentence and inserting in lieu thereof ``paragraph (3)
            or (4)(B) of subsection (a)''; and
                (B) by striking out ``subsection (a)(1)'' in the second
            sentence and inserting in lieu thereof ``paragraph (1) or (5) of
            subsection (a)''.

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

    SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING
                            ADJUSTMENTS FOR FISCAL YEARS 1996, 1997,
                            AND 1998.

        (a) Adjustment of Effective Dates.--Subparagraph (B) of section
    1401a(b)(2) of title 10, United States Code, is amended to read as
    follows:
                        ``(B) Special rules for fiscal years 1996 and
                    1998.--
                              ``(i) Fiscal year 1996.--In the case of the
                          increase in retired pay that, pursuant to
                          paragraph (1), becomes effective on December 1,
                          1995, the initial month for which such increase is
                          payable as part of such retired pay shall
                          (notwithstanding such December 1 effective date)
                          be March 1996.
                              ``(ii) Fiscal year 1998.--In the case of the
                          increase in retired pay that, pursuant to
                          paragraph (1), becomes effective on December 1,
                          1997, the initial month for which such increase is
                          payable as part of such retired pay shall
                          (notwithstanding such December 1 effective date)
                          be September 1998.''.

        (b) <<NOTE: 10 USC 1401a note.>> Contingent Alternative Date for
    Fiscal Year 1998.--(1) If a civil service retiree cola that becomes
    effective during fiscal year 1998 becomes effective on a date other than
    the date on which a military retiree cola during that fiscal year is
    specified to become effective under subparagraph (B) of section
    1401a(b)(2) of title 10, United States Code, as amended by subsection
    (a), then the increase in military retired and retainer pay shall become
    payable as part of such retired and retainer pay effective on the same
    date on which such civil service retiree cola becomes effective
    (notwithstanding the date otherwise specified in such subparagraph (B)).

        (2) Paragraph (1) does not apply with respect to the retired pay of
    a person retired under chapter 61 of title 10, United States Code.
        (3) For purposes of this subsection:

    [[Page 110 STAT. 365]]

                (A) The term ``civil service retiree cola'' means an
            increase in annuities under the Civil Service Retirement System
            either under section 8340(b) of title 5, United States Code, or
            pursuant to a law providing a general increase in such
            annuities.
                (B) The term ``military retiree cola'' means an adjustment
            in retired and retainer pay pursuant to section 1401a(b) of
            title 10, United States Code.

        (c) Repeal of Prior Conditional Enactment.--Section 8114A(b) of
    Public Law 103-335 (108 Stat. 2648) <<NOTE: 10 USC 1401a, 1401a note.>>
    is repealed.
    SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR RESERVES
                            RECEIVING CERTAIN COURT-MARTIAL SENTENCES.

        (a) In General.--(1) Chapter 1223 of title 10, United States Code,
    is amended by adding at the end the following new section:
    ``Sec. 12740. Eligibility: denial upon certain punitive discharges
                          or dismissals

        ``A person who--
                ``(1) is convicted of an offense under the Uniform Code of
            Military Justice (chapter 47 of this title) and whose sentence
            includes death; or
                ``(2) is separated pursuant to sentence of a court-martial
            with a dishonorable discharge, a bad conduct discharge, or (in
            the case of an officer) a dismissal,

    is not eligible for retired pay under this chapter.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``12740. Eligibility: denial upon certain punitive discharges or
               dismissals.''.

      (b) <<NOTE: 10 USC 12740 note.>> Effective Date.--Section 12740 of
    title 10, United States Code, as added by subsection (a), shall apply
    with respect to court-martial sentences adjudged after the date of the
    enactment of this Act.
    SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY
                            SURVIVING SPOUSES.

        (a) Study Required.--(1) The Secretary of Defense shall conduct a
    study to determine the number of potential beneficiaries there would be
    if Congress were to enact authority for the Secretary of the military
    department concerned to pay an annuity to the qualified surviving spouse
    of each member of the Armed Forces who--
                (A) died before March 21, 1974, and was entitled to retired
            or retainer pay on the date of death; or
                (B) was a member of a reserve component who died during the
            period beginning on September 21, 1972, and ending on October 1,
            1978, and at the time of death would have been entitled to
            retired pay under chapter 67 of title 10, United States Code,
            but for the fact that he was under 60 years of age.

        (2) A qualified surviving spouse for purposes of paragraph (1) is a
    surviving spouse who has not remarried and who is not eligible for an
    annuity under section 4 of Public Law 92-425

    (10 U.S.C. 1448 note).
        (b) Required Determinations.--As part of the study under subsection
    (a), the Secretary shall determine the following:

    [[Page 110 STAT. 366]]

                (1) The number of unremarried surviving spouses of deceased
            members and deceased former members of the Armed Forces referred
            to in subparagraph (A) of subsection (a)(1) who would be
            eligible for an annuity under authority described in such
            subsection.
                (2) The number of unremarried surviving spouses of deceased
            members and deceased former members of reserve components
            referred to in subparagraph (B) of subsection (a)(1) who would
            be eligible for an annuity under authority described in such
            subsection.
                (3) The number of persons in each group of unremarried
            former spouses described in paragraphs (1) and (2) who are
            receiving a widow's insurance benefit or a widower's insurance
            benefit under title II of the Social Security Act on the basis
            of employment of a deceased member or deceased former member
            referred to in subsection (a)(1).

        (c) Report.--Not later than March 1, 1996, 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 study under this section. The Secretary shall
    include in the report a recommendation on the amount of the annuity that
    should be authorized to be paid under any authority described in
    subsection (a)(1), together with a recommendation on whether the annuity
    should be adjusted annually to offset increases in the cost of living.
    SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO
                            WORLD WAR II VETERANS WHO SERVED AS
                            GUERRILLA FIGHTERS IN THE PHILIPPINES.

        (a) In General.--The Secretary of the military department concerned
    shall pay, upon request, to an individual described in subsection (b)
    the amount determined with respect to that individual under subsection
    (c).
        (b) Covered Individuals.--A payment under subsection (a) shall be
    made to any individual who as a member of the Armed Forces during World
    War II--
                (1) was captured on the Island of Bataan in the territory of
            the Philippines by Japanese forces;
                (2) participated in the Bataan Death March;
                (3) escaped from captivity; and
                (4) served as a guerrilla fighter in the Philippines during
            the period from January 1942 through February 1945.

        (c) Amount To Be Paid.--The amount of a payment under subsection (a)
    shall be the amount of quarters and subsistence allowance which accrued
    to an individual described in subsection (b) during the period specified
    in paragraph (4) of subsection (b) and which was not paid to that
    individual. The Secretary shall apply interest compounded at the three-
    month Treasury bill rate.
        (d) Payment to Survivors.--In the case of any individual described
    in subsection (b) who is deceased, payment under this section with
    respect to that individual shall be made to that individual's nearest
    surviving relative, as determined by the Secretary concerned.
    SEC. 635.  <<NOTE: 10 USC 1448 note.>> AUTHORITY FOR RELIEF FROM
                            PREVIOUS OVERPAYMENTS UNDER MINIMUM INCOME
                            WIDOWS PROGRAM.

        (a) Authority.--The Secretary of Defense may waive recovery by the
    United States of any overpayment by the United States

    [[Page 110 STAT. 367]]

    described in subsection (b). In the case of any such waiver, any debt to
    the United States arising from such overpayment is forgiven.
        (b) Covered Overpayments.--Subsection (a) applies in the case of an
    overpayment by the United States that--
                (1) was made before the date of the enactment of this Act
            under section 4 of Public Law 92-425 (10 U.S.C. 1448 note); and
                (2) is attributable to failure by the Department of Defense
            to apply the eligibility provisions of subsection (a) of such
            section in the case of the person to whom the overpayment was
            made.
    SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF
                            THE ARMED FORCES SEPARATED FOR DEPENDENT
                            ABUSE.

        (a) Coverage of Program.--Subsection (a) of section 1059 of title
    10, United States Code, is amended by adding at the end the following:
    ``Upon establishment of such a program, the program shall apply in the
    case of each such member described in subsection (b) who is under the
    jurisdiction of the Secretary establishing the program.''.
        (b) Clarification of Payment to Dependents of Members Not
    Discharged.--Subsection (d) of such section is amended--
                (1) in the matter preceding paragraph (1)--
                        (A) by striking out ``any case of a separation from
                    active duty as described in subsection (b)'' and
                    inserting in lieu thereof ``the case of any individual
                    described in subsection (b)''; and
                        (B) by striking ``former member'' and inserting in
                    lieu thereof ``individual'';
                (2) in paragraph (1)--
                        (A) by striking out ``former member'' and inserting
                    in lieu thereof ``individual''; and
                        (B) by striking out ``member'' and inserting in lieu
                    thereof ``individual'';
                (3) in paragraph (2), by striking out ``former member'' both
            places it appears and inserting in lieu thereof ``individual
            described in subsection (b)'';
                (4) in paragraph (3), by striking out ``former member'' and
            inserting in lieu thereof ``individual described in subsection
            (b)''; and
                (5) in paragraph (4), by striking out ``member'' both places
            it appears and inserting in lieu thereof ``individual described
            in subsection (b)''.

        (c) Effective Date.--Section 554(b) of the National Defense
    Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) is
    amended--
                (1) in paragraph (1), by striking out ``on or after the date
            of the enactment of this Act'' and inserting in lieu thereof
            ``after November 29, 1993''; and
                (2) by striking out paragraph (2) and inserting in lieu
            thereof the following:

        ``(2) Payments of transitional compensation under that section in
    the case of any person eligible to receive payments under that section
    shall be made for each month after November 1993 for which that person
    may be paid transitional compensation in accordance with that
    section.''.

    [[Page 110 STAT. 368]]

                            Subtitle E--Other Matters

    SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL LEAVE
                            ACCRUED.

        (a) Inapplicability of 60-Day Limitation.--Section 501(d) of title
    37, United States Code, is amended--
                (1) in paragraph (1), by striking out the third sentence;
            and
                (2) by striking out paragraph (2) and inserting in lieu
            thereof the following new paragraph:

        ``(2) The limitations in the second sentence of subsection (b)(3),
    subsection (f), and the second sentence of subsection (g) shall not
    apply with respect to a payment made under this subsection.''.
        (b) Conforming Amendment.--Section 501(f) of such title is amended
    by striking out ``, (d),'' in the first sentence.
    SEC. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING COMPENSATION
                            MATTERS.

        (a) Report on Travel and Transportation Allowances for Dependents.--
    (1) Section 406 of title 37, United States Code, is amended--
                (A) by striking out subsection (i); and
                (B) by redesignating subsections (j), (k), (l), (m), and (n)
            as subsections (i), (j), (k), (l), and (m), respectively.

        (2) Section 2634(d) of title 10, United States Code, is amended by
    striking out ``section 406(l) of title 37'' and inserting in lieu
    thereof ``section 406(k) of title 37''.
        (b) Annual Review of Pay and Allowances.--Section 1008(a) of title
    37, United States Code, is amended by striking out the second sentence.
        (c) Report on Quadrennial Review of Adjustments in Compensation.--
    Section 1009(f) of such title is amended by striking out ``of this
    title,'' and all that follows through the period at the end and
    inserting in lieu thereof ``of this title.''.
    SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN GARNISHMENT
                            ACTIONS.

        (a) In General.--Subsection (j) of section 5520a of title 5, United
    States Code, is amended by striking out paragraph (2) and inserting in
    lieu thereof the following new paragraph:
        ``(2) Such regulations shall provide that an agency's administrative
    costs incurred in executing legal process to which the agency is subject
    under this section shall be deducted from the amount withheld from the
    pay of the employee concerned pursuant to the legal process.''.
        (b) Involuntary Allotments of Pay of Members of the Uniformed
    Services.--Subsection (k) of such section is amended--
                (1) by redesignating paragraph (3) as paragraph (4); and
                (2) by inserting after paragraph (2) the following new

            paragraph:

        ``(3) Regulations under this subsection may also provide that the
    administrative costs incurred in establishing and maintaining an
    involuntary allotment be deducted from the amount withheld from the pay
    of the member of the uniformed services concerned pursuant to such
    regulations.''.

    [[Page 110 STAT. 369]]

        (c) Disposition of Amounts Withheld for Administrative Expenses.--
    Such section is further amended by adding at the end the following:
        ``(l) The amount of an agency's administrative costs deducted under
    regulations prescribed pursuant to subsection (j)(2) or (k)(3) shall be
    credited to the appropriation, fund, or account from which such
    administrative costs were paid.''.
    SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED OFFICERS
                            PRIVILEGES PROVIDED FOR SENIOR
                            NONCOMMISSIONED OFFICERS.

        (a) Report Required.--Not later than February 1, 1996, the Secretary
    of Defense shall submit to Congress a report containing the
    determinations of the Secretary regarding whether, in order to improve
    the working conditions of noncommissioned officers in pay grades E-5 and
    E-6, any of the privileges afforded noncommissioned officers in any of
    the pay grades above E-6 should be extended to noncommissioned officers
    in pay grades E-5 and

    E-6.
        (b) Specific Recommendation Regarding Election of BAS.--The
    Secretary shall include in the report a determination on whether
    noncommissioned officers in pay grades E-5 and
    E-6 should be afforded the same privilege as noncommissioned officers in
    pay grades above E-6 to elect to mess separately and receive the basic
    allowance for subsistence.
        (c) Additional Matters.--The report shall also contain a discussion
    of the following matters:
                (1) The potential costs of extending additional privileges
            to noncommissioned officers in pay grades E-5 and E-6.
                (2) The effects on readiness that would result from
            extending the additional privileges.
                (3) The options for extending the privileges on an
            incremental basis over an extended period.

        (d) Recommended Legislation.--The Secretary shall include in the
    report any recommended legislation that the Secretary considers
    necessary in order to authorize extension of a privilege as determined
    appropriate under subsection (a).
    SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING LOCATION
                            OF RECRUITING STATIONS.

        (a) Study Required.--The Secretary of Defense shall conduct a study
    regarding the feasibility of--
                (1) using a joint process among the Armed Forces for
            determining the location of recruiting stations and the number
            of military personnel required to operate such stations; and
                (2) basing such determinations on market research and
            analysis conducted jointly by the Armed Forces.

        (b) Report.--Not later than March 31, 1996, the Secretary of Defense
    shall submit to Congress a report describing the results of the study.
    The report shall include a recommended method for measuring the
    efficiency of individual recruiting stations, such as cost per accession
    or other efficiency standard, as determined by the Secretary.
    SEC. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN'S GROUP LIFE
                            INSURANCE.

         <<NOTE: Effective date.>> Effective April 1, 1996, section 1967 of
    title 38, United States Code, is amended--

    [[Page 110 STAT. 370]]

                (1) in subsections (a) and (c), by striking out ``$100,000''
            each place it appears and inserting in lieu thereof in each
            instance ``$200,000'';
                (2) by striking out subsection (e); and
                (3) by redesignating subsection (f) as subsection (e).
    SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE FOR
                            MEMBERS OF THE READY RESERVE WHO FAIL TO
                            PAY PREMIUMS.

        (a) Authority.--Section 1969(a)(2) of title 38, United States Code,
    is amended--
                (1) by inserting ``(A)'' after ``(2)''; and
                (2) by adding at the end the following:

        ``(B) If an individual who is required pursuant to subparagraph (A)
    to make a direct remittance of costs to the Secretary concerned fails to
    make the required remittance within 60 days of the date on which such
    remittance is due, such individual's insurance with respect to which
    such remittance is required shall be terminated by the Secretary
    concerned. <<NOTE: Notice. Effective date.>> Such termination shall be
    made by written notice to the individual's official address and shall be
    effective 60 days after the date of such notice. Such termination of
    insurance may be vacated if, before the effective date of termination,
    the individual remits all amounts past due for such insurance and
    demonstrates to the satisfaction of the Secretary concerned that the
    failure to make timely remittances was justifiable.''.

        (b) Conforming Amendment.--Section 1968(a) is amended by inserting
    ``(or discontinued pursuant to section 1969(a)(2)(B) of this title)'' in
    the matter preceding paragraph (1) after ``upon the written request of
    the insured''.
        (c) <<NOTE: 38 USC 1968 note.>> Effective Date.--The amendments made
    by this section shall take effect on April 1, 1996.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE PHYSICAL
                            EXAMINATIONS AND IMMUNIZATIONS UNDER
                            CHAMPUS.

        Section 1079(a) of title 10, United States Code, is amended by
    striking out paragraph (2) and inserting in lieu thereof the following
    new paragraph:
                ``(2) consistent with such regulations as the Secretary of
            Defense may prescribe regarding the content of health promotion
            and disease prevention visits, the schedule of pap smears and
            mammograms, and the types and schedule of immunizations--
                        ``(A) for dependents under six years of age, both
                    health promotion and disease prevention visits and
                    immunizations may be provided; and
                        ``(B) for dependents six years of age or older,
                    health promotion and disease prevention visits may be
                    provided in connection with immunizations or with
                    diagnostic or preventive pap smears and mammograms;''.

    [[Page 110 STAT. 371]]

    SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND
                            DEATH AND DISABILITY BENEFITS FOR CERTAIN
                            RESERVES.

        (a) Medical and Dental Care.--Section 1074a(a) of title 10, United
    States Code, is amended by adding at the end the following new
    paragraph:
                ``(3) Each member of the armed forces who incurs or
            aggravates an injury, illness, or disease in the line of duty
            while remaining overnight, between successive periods of
            inactive-duty training, at or in the vicinity of the site of the
            inactive-duty training, if the site is outside reasonable
            commuting distance from the member's residence.''.

        (b) Recovery, Care, and Disposition of Remains.--Section 1481(a)(2)
    of title 10, United States Code, is amended--
                (1) in subparagraph (C), by striking out ``or'' at the end
            of the subparagraph;
                (2) by redesignating subparagraph (D) as subparagraph (E);
            and
                (3) by inserting after subparagraph (C) the following new
            subparagraph:
                        ``(D) remaining overnight, between successive
                    periods of inactive-duty training, at or in the vicinity
                    of the site of the inactive-duty training, if the site
                    is outside reasonable commuting distance from the
                    member's residence; or''.

        (c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of section 204
    of title 37, United States Code, is amended--
                (A) in subparagraph (B), by striking out ``or'' at the end
            of the subparagraph;
                (B) in subparagraph (C), by striking out the period at the
            end of the subparagraph and inserting in lieu thereof ``; or'';
            and
                (C) by inserting after subparagraph (C) the following new
            subparagraph:
                ``(D) in line of duty while remaining overnight, between
            successive periods of inactive-duty training, at or in the
            vicinity of the site of the inactive-duty training, if the site
            is outside reasonable commuting distance from the member's
            residence.''.

        (2) Subsection (h)(1) of such section is amended--
                (A) in subparagraph (B), by striking out ``or'' at the end
            of the subparagraph;
                (B) in subparagraph (C), by striking out the period at the
            end of the subparagraph and inserting in lieu thereof ``; or'';
            and
                (C) by inserting after subparagraph (C) the following new
            subparagraph:
                ``(D) in line of duty while remaining overnight, between
            successive periods of inactive-duty training, at or in the
            vicinity of the site of the inactive-duty training, if the site
            is outside reasonable commuting distance from the member's
            residence.''.

        (d) Compensation for Inactive-Duty Training.--Section 206(a)(3) of
    title 37, United States Code, is amended--
                (1) in subparagraph (A), by striking out ``or'' at the end
            of clause (ii);
                (2) in subparagraph (B), by striking out the period at the
            end of the subparagraph and inserting in lieu thereof ``; or'';
            and

    [[Page 110 STAT. 372]]

                (3) by inserting after subparagraph (B) the following new
            subparagraph:
                        ``(C) in line of duty while remaining overnight,
                    between successive periods of inactive-duty training, at
                    or in the vicinity of the site of the inactive-duty
                    training, if the site is outside reasonable commuting
                    distance from the member's residence.''.
    SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED
                            RESERVES WHO DIE BEFORE AGE 60.

        (a) Change in Eligibility Requirements.--Paragraph (2) of section
    1076(b) of title 10, United States Code, is amended--
                (1) by striking out ``death (A) would'' and inserting in
            lieu thereof ``death would''; and
                (2) by striking out ``, and (B) had elected to participate
            in the Survivor Benefit Plan established under subchapter II of
            chapter 73 of this title''.

        (b) Conforming Amendments.--Such paragraph is further amended--
                (1) in the matter following paragraph (2), by striking out
            ``clause (2)'' the first place it appears and inserting in lieu
            thereof ``paragraph (2)''; and
                (2) by striking out the second sentence.
    SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED
                            RESERVE ASSIGNED TO EARLY DEPLOYING UNITS
                            OF THE ARMY SELECTED RESERVE.

        (a) Annual Medical and Dental Screenings and Care.--Section 1074a of
    title 10, United States Code, is amended--
                (1) in subsection (c), by striking out ``this section'' and
            inserting in lieu thereof ``subsection (b)''; and
                (2) by adding at the end the following new subsection:

        ``(d)(1) The Secretary of the Army shall provide to members of the
    Selected Reserve of the Army who are assigned to units scheduled for
    deployment within 75 days after mobilization the following medical and
    dental services:
                ``(A) An annual medical screening.
                ``(B) For members who are over 40 years of age, a full
            physical examination not less often than once every two years.
                ``(C) An annual dental screening.
                ``(D) The dental care identified in an annual dental
            screening as required to ensure that a member meets the dental
            standards required for deployment in the event of mobilization.

        ``(2) The services provided under this subsection shall be provided
    at no cost to the member.''.
        (b) <<NOTE: 10 USC 10105 note.>> Conforming Repeals.--Sections 1117
    and 1118 of the Army National Guard Combat Readiness Reform Act of 1992
    (title XI of Public Law 102-484; 10 U.S.C. 3077 note) are repealed.
    SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED RESERVE.

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

    ``Sec. 1076b. Selected Reserve dental insurance

        ``(a) Authority To Establish Plan.--The Secretary of Defense shall
    establish a dental insurance plan for members of the Selected

    [[Page 110 STAT. 373]]

    Reserve of the Ready Reserve. The plan shall provide for voluntary
    enrollment and for premium sharing between the Department of Defense and
    the members enrolled in the plan. <<NOTE: Regulations.>> The plan shall
    be administered under regulations prescribed by the Secretary of
    Defense.

        ``(b) Premium Sharing.--(1) A member enrolling in the dental
    insurance plan shall pay a share of the premium charged for the
    insurance coverage. The member's share may not exceed $25 per month.
        ``(2) The Secretary of Defense may reduce the monthly premium
    required to be paid by enlisted members under paragraph (1) if the
    Secretary determines that the reduction is appropriate in order to
    assist enlisted members to participate in the dental insurance plan.
        ``(3) A member's share of the premium for coverage by the dental
    insurance plan shall be deducted and withheld from the basic pay payable
    to the member for inactive duty training and from the basic pay payable
    to the member for active duty.
        ``(4) The Secretary of Defense shall pay the portion of the premium
    charged for coverage of a member under the dental insurance plan that
    exceeds the amount paid by the member.
        ``(c) Benefits Available Under the Plan.--The dental insurance plan
    shall provide benefits for basic dental care and treatment, including
    diagnostic services, preventative services, basic restorative services,
    and emergency oral examinations.
        ``(d) Termination of Coverage.--The coverage of a member by the
    dental insurance plan shall terminate on the last day of the month in
    which the member is discharged, transfers to the Individual Ready
    Reserve, Standby Reserve, or Retired Reserve, or is ordered to active
    duty for a period of more than 30 days.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1076a the
    following:

    ``1076b. Selected Reserve dental insurance.''.

        (b) <<NOTE: 10 USC 1076b note.>> Implementation.--Beginning not
    later than October 1, 1996, the Secretary of Defense shall offer members
    of the Selected Reserve the opportunity to enroll in the dental
    insurance plan required under section 1076b of title 10, United States
    Code (as added by subsection (a)). During fiscal year 1996, the
    Secretary shall collect such information and complete such planning and
    other preparations as are necessary to offer and administer the dental
    insurance plan by that date. The activities undertaken by the Secretary
    under this subsection during fiscal year 1996 may include--
                (1) surveys; and
                (2) tests, in not more than three States, of a dental
            insurance plan or alternative dental insurance plans meeting the
            requirements of section 1076b of title 10, United States Code.
    SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED TREATMENT
                            FACILITY PROGRAM.

        Section 1105 of title 10, United States Code, is amended by striking
    out subsection (h).

    [[Page 110 STAT. 374]]

                           Subtitle B--TRICARE Program

    SEC. 711.  <<NOTE: 10 USC 1073 note.>> DEFINITION OF TRICARE
                            PROGRAM.

        For purposes of this subtitle, the term ``TRICARE program'' means
    the managed health care program that is established by the Secretary of
    Defense under the authority of chapter 55 of title 10, United States
    Code, principally section 1097 of such title, and includes the
    competitive selection of contractors to financially underwrite the
    delivery of health care services under the Civilian Health and Medical
    Program of the Uniformed Services.
    SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR
                            PERSONS ENROLLED IN MANAGED CARE
                            INITIATIVES.

        Section 1097(c) of title 10, United States Code, is amended in the
    third sentence by striking out ``However, the Secretary may'' and
    inserting in lieu thereof ``Notwithstanding the preferences established
    by sections 1074(b) and 1076 of this title, the Secretary shall''.
    SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE
                            PROGRAM.

        Section 1097(e) of title 10, United States Code, is amended by
    adding at the end the following new sentence: ``Without imposing
    additional costs on covered beneficiaries who participate in contracts
    for health care services under this section or health care plans offered
    under section 1099 of this title, the Secretary shall permit such
    covered beneficiaries to pay, on a quarterly basis, any enrollment fee
    required for such participation.''.
    SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE PROGRAM TO
                            BE BASED ON ENTIRE PROGRAM.

        (a) Change in Budget Neutrality Requirements.--Subsection (c) of
    section 731 of the National Defense Authorization Act for Fiscal Year
    1994 (Public Law 103-160; 10 U.S.C. 1073 note) is amended--
                (1) by striking out ``each managed health care initiative
            that includes the option'' and inserting in lieu thereof ``the
            TRICARE program''; and
                (2) by striking out ``covered beneficiaries who enroll in
            the option'' and inserting in lieu thereof ``members of the
            uniformed services and covered beneficiaries who participate in
            the TRICARE program''.

        (b) Addition of Definition of TRICARE Program.--Subsection (d) of
    such section is amended to read as follows:
        ``(d) Definitions.--For purposes of this section:
                ``(1) The term `covered beneficiary' means a beneficiary
            under chapter 55 of title 10, United States Code, other than a
            beneficiary under section 1074(a) of such title.
                ``(2) The term `TRICARE program' means the managed health
            care program that is established by the Secretary of Defense
            under the authority of chapter 55 of title 10, United States
            Code, principally section 1097 of such title, and includes the
            competitive selection of contractors to financially underwrite
            the delivery of health care services under the Civilian Health
            and Medical Program of the Uniformed Services.''.

    [[Page 110 STAT. 375]]

    SEC. 715.  <<NOTE: 10 USC 1073 note.>> TRAINING IN HEALTH CARE
                            MANAGEMENT AND ADMINISTRATION FOR TRICARE
                            LEAD AGENTS.

        (a) Provision of Training.--Not later than six months after the date
    of the enactment of this Act, the Secretary of Defense shall implement a
    professional educational program to provide appropriate training in
    health care management and administration--
                (1) to each commander of a military medical treatment
            facility of the Department of Defense who is selected to serve
            as a lead agent to coordinate the delivery of health care by
            military and civilian providers under the TRICARE program; and
                (2) to appropriate members of the support staff of the
            treatment facility who will be responsible for daily operation
            of the TRICARE program.

        (b) Report on Implementation.--Not later than six months after the
    date of the enactment of this Act, the Secretary of Defense shall submit
    to Congress a report describing the professional educational program
    implemented pursuant to this section.
    SEC. 716.  <<NOTE: Children and youth. 10 USC 1073 note.>> PILOT
                            PROGRAM OF INDIVIDUALIZED RESIDENTIAL
                            MENTAL HEALTH SERVICES.

        (a) Program Required.--(1) During fiscal year 1996, the Secretary of
    Defense, in consultation with the other administering Secretaries under
    chapter 55 of title 10, United States Code, shall implement a pilot
    program to provide residential and wraparound services to children
    described in paragraph (2) who are in need of mental health services.
    The Secretary shall implement the pilot program for an initial period of
    at least two years in a military health care region in which the TRICARE
    program has been
    implemented.
        (2) A child shall be eligible for selection to participate in the
    pilot program if the child is a dependent (as described in subparagraph
    (D) or (I) of section 1072(2) of title 10, United States Code) who--
                (A) is eligible for health care under section 1079 or 1086
            of such title; and
                (B) has a serious emotional disturbance that is generally
            regarded as amenable to treatment.

        (b) Wraparound Services Defined.--For purposes of this section, the
    term ``wraparound services'' means individualized mental health services
    that are provided principally to allow a child to remain in the family
    home or other least-restrictive and least-costly setting, but also are
    provided as an aftercare planning service for children who have received
    acute or residential care. Such term includes nontraditional mental
    health services that will assist the child to be maintained in the
    least-restrictive and least-costly setting.
        (c) Pilot Program Agreement.--Under the pilot program the Secretary
    of Defense shall enter into one or more agreements that require a mental
    health services provider under the agreement--
                (1) to provide wraparound services to a child described in
            subsection (a)(2);
                (2) to continue to provide such services as needed during
            the period of the agreement even if the child moves to another
            location within the same TRICARE program region during that
            period; and

    [[Page 110 STAT. 376]]

                (3) to share financial risk by accepting as a maximum annual
            payment for such services a case-rate reimbursement not in
            excess of the amount of the annual standard CHAMPUS residential
            treatment benefit payable (as determined in accordance with
            section 8.1 of chapter 3 of volume II of the CHAMPUS policy
            manual).

        (d) Report.--Not later than March 1, 1998, 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 program carried out under this section. The report shall
    contain--
                (1) an assessment of the effectiveness of the program; and
                (2) the Secretary's views regarding whether the program
            should be implemented throughout the military health care
            system.
    SEC. 717.  <<NOTE: 10 USC 1073 note.>> EVALUATION AND REPORT ON
                            TRICARE PROGRAM EFFECTIVENESS.

        (a) Evaluation Required.--The Secretary of Defense shall arrange for
    an on-going evaluation of the effectiveness of the TRICARE program in
    meeting the goals of increasing the access of covered beneficiaries
    under chapter 55 of title 10, United States Code, to health care and
    improving the quality of health care provided to covered beneficiaries,
    without increasing the costs incurred by the Government or covered
    beneficiaries. The evaluation shall specifically address--
                (1) the impact of the TRICARE program on military retirees
            with regard to access, costs, and quality of health care
            services; and
                (2) identify noncatchment areas in which the health
            maintenance organization option of the TRICARE program is
            available or is proposed to become available.

        (b) Entity To Conduct Evaluation.--The Secretary may use a federally
    funded research and development center to conduct the evaluation
    required by subsection (a).
        (c) Annual Report.--Not later than March 1, 1997, and each March 1
    thereafter, the Secretary shall submit to Congress a report describing
    the results of the evaluation under subsection (a) during the preceding
    year.
    SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE UNDER
                            TRICARE PROGRAM FOR COVERED BENEFICIARIES
                            WHO ARE MEDICARE ELIGIBLE.

        (a) Findings.--Congress finds the following:
                (1) Medical care provided in facilities of the uniformed
            services is generally less expensive to the Federal Government
            than the same care provided at Government expense in the private
            sector.
                (2) Covered beneficiaries under the military health care
            provisions of chapter 55, United States Code, who are eligible
            for medicare under title XVIII of the Social Security Act (42
            U.S.C. 1395 et seq.) deserve health care options that empower
            them to choose the health plan that best fits their needs.

        (b) Sense of Congress.--In light of the findings specified in
    subsection (a), it is the sense of Congress that--
                (1) the Secretary of Defense should develop a program to
            ensure that such covered beneficiaries who reside in a region in
            which the TRICARE program has been implemented con

    [[Page 110 STAT. 377]]

            tinue to have adequate access to health care services after the
            implementation of the TRICARE program; and
                (2) as a means of ensuring such access, the budget for
            fiscal year 1997 submitted by the President under section 1105
            of title 31, United States Code, should provide for
            reimbursement by the Health Care Financing Administration to the
            Department of Defense for health care services provided to such
            covered beneficiaries in medical treatment facilities of the
            Department of Defense.

               Subtitle C--Uniformed Services Treatment Facilities

    SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN FACILITIES AS
                            UNIFORMED SERVICES TREATMENT FACILITIES.

        Section 1252(e) of the Department of Defense Authorization Act, 1984
    (42 U.S.C. 248d(e)) is amended by striking out ``December 31, 1996'' in
    the first sentence and inserting in lieu thereof ``September 30, 1997''.
    SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED SERVICES
                            TREATMENT FACILITIES.

        Subsection (f) of section 1252 of the Department of Defense
    Authorization Act, 1984 (42 U.S.C. 248d), is amended to read as follows:
        ``(f) Limitation on Expenditures.--The total amount of expenditures
    by the Secretary of Defense to carry out this section and section 911 of
    the Military Construction Authorization Act, 1982 (42 U.S.C. 248c), for
    fiscal year 1996 may not exceed $300,000,000, adjusted by the Secretary
    to reflect the inflation factor used by the Department of Defense for
    such fiscal year.''.
    SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN CASES.

        Section 1074 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(d)(1) The Secretary of Defense may require, by regulation, a
    private CHAMPUS provider to apply the CHAMPUS payment rules (subject to
    any modifications considered appropriate by the Secretary) in imposing
    charges for health care that the private CHAMPUS provider provides to a
    member of the uniformed services who is enrolled in a health care plan
    of a facility deemed to be a facility of the uniformed services under
    section 911(a) of the Military Construction Authorization Act, 1982 (42
    U.S.C. 248c(a)) when the health care is provided outside the catchment
    area of the facility.
        ``(2) In this subsection:
                ``(A) The term `private CHAMPUS provider' means a private
            facility or health care provider that is a health care provider
            under the Civilian Health and Medical Program of the Uniformed
            Services.
                ``(B) The term `CHAMPUS payment rules' means the payment
            rules referred to in subsection (c).

        ``(3) <<NOTE: Regulations.>> The Secretary of Defense shall
    prescribe regulations under this subsection after consultation with the
    other administering Secretaries.''.

    [[Page 110 STAT. 378]]

    SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO
                            PARTICIPATION AGREEMENTS WITH UNIFORMED
                            SERVICES TREATMENT FACILITIES.

        (a) Section 718(c) of the National Defense Authorization Act for
    Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) <<NOTE: 42 USC
    248c note.>> is amended--
                (1) in the second sentence of paragraph (1), by striking out
            ``A participation agreement'' and inserting in lieu thereof
            ``Except as provided in paragraph (4), a participation
            agreement'';
                (2) by redesignating paragraph (4) as paragraph (6); and
                (3) by inserting after paragraph (3) the following new
            paragraph:
                ``(4) Application of federal acquisition regulation.--On and
            after the date of the enactment of this paragraph, Uniformed
            Services Treatment Facilities and any participation agreement
            between Uniformed Services Treatment Facilities and the
            Secretary of Defense shall be subject to the Federal Acquisition
            Regulation issued pursuant to section 25(c) of the Office of
            Federal Procurement Policy Act (41 U.S.C. 421(c))
            notwithstanding any provision to the contrary in such a
            participation agreement. The requirements regarding competition
            in the Federal Acquisition Regulation shall apply with regard to
            the negotiation of any new participation agreement between the
            Uniformed Services Treatment Facilities and the Secretary of
            Defense under this subsection or any other provision of law.''.

        (b) Sense of Congress.--(1) Congress finds that the Uniformed
    Services Treatment Facilities provide quality health care to the 120,000
    Department of Defense beneficiaries enrolled in the Uniformed Services
    Family Health Plan provided by these facilities.
        (2) In light of such finding, it is the sense of Congress that the
    Uniformed Services Family Health Plan provided by the Uniformed Services
    Treatment Facilities should not be terminated for convenience under
    provisions of the Federal Acquisition Regulation by the Secretary of
    Defense before the expiration of the current participation agreements.
        (3) For purposes of this subsection, the term ``Uniformed Services
    Treatment Facility'' means a facility deemed to be a facility of the
    uniformed services by virtue of section 911(a) of the Military
    Construction Authorization Act, 1982 (42 U.S.C. 248c(a)).
    SEC. 725. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED SERVICES
                            TREATMENT FACILITIES IN MANAGED CARE
                            PROGRAMS OF DEPARTMENT OF DEFENSE.

        Section 718(c) of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 104 Stat. 1587) <<NOTE: 42 USC 248c
    note.>> is amended by inserting after paragraph (4), as added by section
    722, the following new paragraph:
                ``(5) Plan for integrating facilities.--(A) The Secretary of
            Defense shall develop a plan under which Uniformed Services
            Treatment Facilities could be included, before the expiration
            date of the participation agreements entered into under this
            section, in the exclusive health care provider networks
            established by the Secretary for the geographic regions in which
            the facilities are located. The Secretary shall address in the
            plan the feasibility of implementing the managed care plan

    [[Page 110 STAT. 379]]

            of the Uniformed Services Treatment Facilities, known as Option
            II, on a mandatory basis for all USTF Medicare-eligible
            beneficiaries and the potential cost savings to the Military
            Health Care Program that could be achieved under such option.
                ``(B) The Secretary shall submit the plan developed under
            this paragraph to Congress not later than March 1, 1996.
                ``(C) The plan developed under this paragraph shall be
            consistent with the requirements specified in paragraph (4). If
            the plan is not submitted to Congress by the expiration date of
            the participation agreements entered into under this section,
            the participation agreements shall remain in effect, at the
            option of the Uniformed Services Treatment Facilities, until the
            end of the 180-day period beginning on the date the plan is
            finally submitted.
                ``(D) For purposes of this paragraph, the term `USTF
            Medicare-eligible beneficiaries' means covered beneficiaries
            under chapter 55 of title 10, United States Code, who are
            enrolled in a managed health plan offered by the Uniformed
            Services Treatment Facilities and entitled to hospital insurance
            benefits under part A of title XVIII of the Social Security Act
            (42 U.S.C. 1395c et seq.).''.

    SEC. 726. <<NOTE: 42 USC 248c note.>> EQUITABLE IMPLEMENTATION OF
                UNIFORM COST SHARING REQUIREMENTS FOR UNIFORMED SERVICES
                TREATMENT FACILITIES.

        (a) Time for Fee Implementation.--The uniform managed care benefit
    fee and copayment schedule developed by the Secretary of Defense for use
    in all managed care initiatives of the military health service system,
    including the managed care program of the Uniformed Services Treatment
    Facilities, shall be extended to the managed care program of a Uniformed
    Services Treatment Facility only after the later of--
                (1) the implementation of the TRICARE regional program
            covering the service area of the Uniformed Services Treatment
            Facility; or
                (2) October 1, 1996.

        (b) Submission of Actuarial Estimates.--Paragraph (2) of subsection
    (a) shall operate as a condition on the extension of the uniform managed
    care benefit fee and copayment schedule to the Uniformed Services
    Treatment Facilities only if the Uniformed Services Treatment Facilities
    submit to the Comptroller General of the United States, within 30 days
    after the date of the enactment of this Act, actuarial estimates in
    support of their contention that the extension of such fees and
    copayments will have an adverse effect on the operation of the Uniformed
    Services Treatment Facilities and the enrollment of participants.
        (c) Evaluation.--(1) Except as provided in paragraph (2), not later
    than 90 days after the date of the enactment of this Act, the
    Comptroller General shall submit to Congress the results of an
    evaluation of the effect on the Uniformed Services Treatment Facilities
    of the extension of the uniform benefit fee and copayment schedule to
    the Uniformed Services Treatment Facilities. The evaluation shall
    include an examination of whether the benefit fee and copayment schedule
    may--
                (A) cause adverse selection of enrollees;
                (B) be inappropriate for a fully at-risk program similar to
            civilian health maintenance organizations; or

    [[Page 110 STAT. 380]]

                (C) result in an enrolled population dissimilar to the
            general beneficiary population.

        (2) The Comptroller General shall not be required to prepare or
    submit the evaluation under paragraph (1) if the Uniformed Services
    Treatment Facilities fail to satisfactorily comply with subsection (b),
    as determined by the Comptroller General.
    SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENT
                            REGARDING UNIFORMED SERVICES TREATMENT
                            FACILITIES.

        Section 1252 of the Department of Defense Authorization Act, 1984
    (42 U.S.C. 248d), is amended by striking out subsection (d).

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

    SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-CARE
                            PROVIDERS UNDER CHAMPUS.

        (a) Maximum Payment.--Subsection (h) of section 1079 of title 10,
    United States Code, is amended by striking out paragraph (1) and
    inserting in lieu thereof the following new paragraph:
        ``(1) Payment for a charge for services by an individual health care
    professional (or other noninstitutional health care provider) for which
    a claim is submitted under a plan contracted for under subsection (a)
    may not exceed the lesser of--
                ``(A) the amount equivalent to the 80th percentile of billed
            charges made for similar services in the same locality during
            the base period; or
                ``(B) an amount determined to be appropriate, to the extent
            practicable, in accordance with the same reimbursement rules as
            apply to payments for similar services under title XVIII of the
            Social Security Act (42 U.S.C. 1395 et seq.).''.

        (b) Comparison to Medicare Payments.--Such subsection is further
    amended by adding at the end the following new paragraph:
        ``(3) For the purposes of paragraph (1)(B), the appropriate payment
    amount shall be determined by the Secretary of Defense, in consultation
    with the other administering Secretaries.''.
        (c) Exceptions and Limitations.--Such subsection is further amended
    by inserting after paragraph (3), as added by subsection (b), the
    following new paragraphs:
        ``(4) <<NOTE: Regulations.>> The Secretary of Defense, in
    consultation with the other administering Secretaries, shall prescribe
    regulations to provide for such exceptions to the payment limitations
    under paragraph (1) as the Secretary determines to be necessary to
    assure that covered beneficiaries retain adequate access to health care
    services. Such exceptions may include the payment of amounts higher than
    the amount allowed under paragraph (1) when enrollees in managed care
    programs obtain covered emergency services from nonparticipating
    providers. To provide a suitable transition from the payment
    methodologies in effect before the date of the enactment of this
    paragraph to the methodology required by paragraph (1), the amount
    allowable for any service may not be reduced by more than 15 percent
    below the amount allowed for the same service during the immediately
    preceding 12-month period (or other period as established by the
    Secretary of Defense).

    [[Page 110 STAT. 381]]

        ``(5) <<NOTE: Regulations.>> The Secretary of Defense, in
    consultation with the other administering Secretaries, shall prescribe
    regulations to establish limitations (similar to the limitations
    established under title XVIII of the Social Security Act (42 U.S.C. 1395
    et seq.)) on beneficiary liability for charges of an individual health
    care professional (or other noninstitutional health care provider).''.

        (d) Conforming Amendment.--Paragraph (2) of such subsection is
    amended by striking out ``paragraph (1)'' and inserting in lieu thereof
    ``paragraph (1)(A)''.
        (e) Report on Effect of Amendments.--Not later than March 1, 1996,
    the Secretary of Defense shall submit to Congress a report analyzing the
    effect of the amendments made by this section on the ability or
    willingness of individual health care professionals and other
    noninstitutional health care providers to participate in the Civilian
    Health and Medical Program of the Uniformed Services.
    SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED BENEFICIARIES OF
                            LOSS OF CHAMPUS ELIGIBILITY.

        Section 1086(d) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(4) The administering Secretaries shall develop a mechanism by
    which persons described in paragraph (1) who satisfy only the criteria
    specified in subparagraphs (A) and (B) of paragraph (2), but not
    subparagraph (C) of such paragraph, are promptly notified of their
    ineligibility for health benefits under this section. In developing the
    notification mechanism, the administering Secretaries shall consult with
    the administrator of the Health Care Financing Administration.''.
    SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT
                            FACILITIES OF THE COAST GUARD.

        (a) Contracting Authority.--Section 1091(a) of title 10, United
    States Code, is amended--
                (1) by inserting after ``Secretary of Defense'' the
            following: ``, with respect to medical treatment facilities of
            the Department of Defense, and the Secretary of Transportation,
            with respect to medical treatment facilities of the Coast Guard
            when the Coast Guard is not operating as a service in the
            Navy,''; and
                (2) by striking out ``medical treatment facilities of the
            Department of Defense'' and inserting in lieu thereof ``such
            facilities''.

        (b) <<NOTE: 10 USC 1091 note.>> Ratification of Existing
    Contracts.--Any exercise of authority under section 1091 of title 10,
    United States Code, to enter into a personal services contract on behalf
    of the Coast Guard before the effective date of the amendments made by
    subsection (a) is hereby ratified.

        (c) <<NOTE: 10 USC 1091 note.>> Effective Date.--The amendments made
    by subsection (a) shall take effect as of October 1, 1995.

    SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

        Section 1095 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(k)(1) To improve the administration of this section and sections
    1079(j)(1) and 1086(d) of this title, the Secretary of Defense, in
    consultation with the other administering Secretaries, may prescribe
    regulations providing for the collection of information regarding
    insurance, medical service, or health plans of third-party payers held
    by covered beneficiaries.

    [[Page 110 STAT. 382]]

        ``(2) The collection of information under regulations prescribed
    under paragraph (1) shall be conducted in the same manner as is provided
    in section 1862(b)(5) of the Social Security Act (42 U.S.C.
    1395y(b)(5)). The Secretary may provide for obtaining from the
    Commissioner of Social Security employment information comparable to the
    information provided to the Administrator of the Health Care Financing
    Administration pursuant to such section. Such regulations may require
    the mandatory disclosure of Social Security account numbers for all
    covered beneficiaries.
        ``(3) The Secretary may disclose relevant employment information
    collected under this subsection to fiscal intermediaries or other
    designated contractors.
        ``(4) The Secretary may provide for contacting employers of covered
    beneficiaries to obtain group health plan information comparable to the
    information authorized to be obtained under section 1862(b)(5)(C) of the
    Social Security Act (42 U.S.C. 1395y(b)(5)(C)). Notwithstanding clause
    (iii) of such section, clause (ii) of such section regarding the
    imposition of civil money penalties shall apply to the collection of
    information under this paragraph.
        ``(5) Information obtained under this subsection may not be
    disclosed for any purpose other than to carry out the purpose of this
    section and sections 1079(j)(1) and 1086(d) of this title.''.
    SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS DEFENSE
                            HEALTH PROGRAM ACCOUNT AND TWO-YEAR
                            AVAILABILITY OF CERTAIN ACCOUNT FUNDS.

        (a) Redesignation.--Section 1100 of title 10, United States Code, is
    amended--
                (1) in subsection (a)(1)--
                        (A) by striking out ``Military Health Care Account''
                    and inserting in lieu thereof ``Defense Health Program
                    Account''; and
                        (B) by striking out ``the Civilian Health and
                    Medical Program of the Uniformed Services'' and
                    inserting in lieu thereof ``medical and health care
                    programs of the Department of Defense''; and
                (2) in subsection (b)--
                        (A) by striking out ``entering into a contract'' and
                    inserting in lieu thereof ``conducting programs and
                    activities under this chapter, including contracts
                    entered into''; and
                        (B) by inserting a comma after ``title''.

        (b) Two Year Availability of Certain Appropriations.--Subsection
    (a)(2) of such section is amended to read as follows:
        ``(2) Of the total amount appropriated for a fiscal year for
    programs and activities carried out under this chapter, the amount equal
    to three percent of such total amount shall remain available for
    obligation until the end of the following fiscal year.''.
        (c) Conforming Amendments.--Such section is further
    amended--
                (1) by striking out subsections (c), (d), and (f); and
                (2) by redesignating subsection (e) as subsection (c).

        (d) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    [[Page 110 STAT. 383]]

    ``Sec. 1100. Defense Health Program Account''.

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

    ``1100. Defense Health Program Account.''.

    SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR HEALTH-
                            CARE PROFESSIONALS IN RESERVE COMPONENTS
                            TO INCLUDE DENTAL SPECIALTIES.

        Section 16201(b) of title 10, United States Code, is amended--
                (1) in the subsection heading, by inserting ``and Dentists''
            after ``Physicians'';
                (2) in paragraph (1)(A), by inserting ``or dental school''
            after ``medical school'';
                (3) in paragraphs (1)(B) and (2)(B), by inserting ``or
            dental officer'' after ``medical officer''; and
                (4) in paragraph (1)(C), by striking out ``physicians in a
            medical specialty'' and inserting in lieu thereof ``physicians
            or dentists in a medical or dental specialty''.
    SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF PHARMACEUTICALS
                            PROCURED FOR COAST GUARD.

        (a) Inclusion of Coast Guard.--Section 8126(b) of title 38, United
    States Code, is amended by adding at the end the following new
    paragraph:
                ``(4) The Coast Guard.''.

        (b) <<NOTE: 38 USC 8126 note.>> Effective Date; Application of
    Amendment.--The amendment made by subsection (a) shall take effect as if
    included in the enactment of section 603 of the Veterans Health Care Act
    of 1992 (Public Law 102-585; 106 Stat. 4971).
    SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE FACILITIES
                            FOR ABORTIONS.

        (a) In General.--Section 1093 of title 10, United States Code, is
    amended--
                (1) by inserting ``(a) Restriction on Use of
            Funds.--'' before ``Funds available''; and
                (2) by adding at the end the following:

        ``(b) Restriction on Use of Facilities.--No medical treatment
    facility or other facility of the Department of Defense may be used to
    perform an abortion except where the life of the mother would be
    endangered if the fetus were carried to term or in a case in which the
    pregnancy is the result of an act of rape or incest.''.
        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 1093. Performance of abortions: restrictions''.

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

    ``1093. Performance of abortions: restrictions.''.

    [[Page 110 STAT. 384]]

                            Subtitle E--Other Matters

    SEC. 741. TRISERVICE NURSING RESEARCH.

        (a) Program Authorized.--Chapter 104 of title 10, United States
    Code, is amended by adding at the end the following new section:

    ``Sec. 2116. Military nursing research

        ``(a) Definitions.--In this section:
                ``(1) The term `military nursing research' means research on
            the furnishing of care and services by nurses in the armed
            forces.
                ``(2) The term `TriService Nursing Research Program' means
            the program of military nursing research authorized under this
            section.

        ``(b) Program Authorized.--The Secretary of Defense may establish at
    the University a program of military nursing research.
        ``(c) TriService Research Group.--The TriService Nursing Research
    Program shall be administered by a TriService Nursing Research Group
    composed of Army, Navy, and Air Force nurses who are involved in
    military nursing research and are designated by the Secretary concerned
    to serve as members of the group.
        ``(d) Duties of Group.--The TriService Nursing Research Group
    shall--
                ``(1) develop for the Department of Defense recommended
            guidelines for requesting, reviewing, and funding proposed
            military nursing research projects; and
                ``(2) make available to Army, Navy, and Air Force nurses and
            Department of Defense officials concerned with military nursing
            research--
                        ``(A) information about nursing research projects
                    that are being developed or carried out in the Army,
                    Navy, and Air Force; and
                        ``(B) expertise and information beneficial to the
                    encouragement of meaningful nursing research.

        ``(e) Research Topics.--For purposes of this section, military
    nursing research includes research on the following issues:
                ``(1) Issues regarding how to improve the results of nursing
            care and services provided in the armed forces in time of peace.
                ``(2) Issues regarding how to improve the results of nursing
            care and services provided in the armed forces in time of war.
                ``(3) Issues regarding how to prevent complications
            associated with battle injuries.
                ``(4) Issues regarding how to prevent complications
            associated with the transporting of patients in the military
            medical evacuation system.
                ``(5) Issues regarding how to improve methods of training
            nursing personnel.
                ``(6) Clinical nursing issues, including such issues as
            prevention and treatment of child abuse and spouse abuse.
                ``(7) Women's health issues.
                ``(8) Wellness issues.
                ``(9) Preventive medicine issues.
                ``(10) Home care management issues.

    [[Page 110 STAT. 385]]

                ``(11) Case management issues.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 104 of such title is amended by adding at the end the following:

    ``2116. Military nursing research.''.

    SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY PSYCHOLOGISTS
                            TO PRESCRIBE PSYCHOTROPIC MEDICATIONS.

        (a) Termination.--Not later than June 30, 1997, the Secretary of
    Defense shall terminate the demonstration pilot program for training
    military psychologists in the prescription of psychotropic medications,
    which is referred to in section 8097 of the Department of Defense
    Appropriations Act, 1991 (Public Law 101-511; 104 Stat. 1897).
        (b) Prohibition on Additional Enrollees Pending Termination.--After
    the date of the enactment of this Act, the Secretary of Defense may not
    enroll any new participants for the demonstration pilot program
    described in subsection (a).
        (c) Effect on Current Participants.--The requirement to terminate
    the demonstration pilot program described in subsection (a) shall not be
    construed to affect the training or utilization of military
    psychologists in the prescription of psychotropic medications who are
    participating in the demonstration pilot program on the date of the
    enactment of this Act or who have completed such training before that
    date.
        (d) <<NOTE: Reports.>> Evaluation.--As soon as possible after the
    date of the enactment of this Act, but not later than April 1, 1997, the
    Comptroller General of the United States shall submit to Congress a
    report evaluating the success of the demonstration pilot program
    described in subsection (a). The report shall include--
                (1) a cost-benefit analysis of the program;
                (2) a discussion of the utilization requirements under the
            program; and
                (3) recommendations regarding--
                        (A) whether the program should be extended so as to
                    continue to provide training to military psychologists
                    in the prescription of psychotropic medications; and
                        (B) any modifications that should be made in the
                    manner in which military psychologists are trained and
                    used to prescribe psychotropic medications so as to
                    improve the training provided under the program, if the
                    program is extended.
    SEC. 743.  <<NOTE: 10 USC 1086 note.>> WAIVER OF COLLECTION OF
                            PAYMENTS DUE FROM CERTAIN PERSONS UNAWARE
                            OF LOSS OF CHAMPUS ELIGIBILITY.

        (a) Authority To Waive Collection.--The administering Secretaries
    may waive the collection of payments otherwise due from a person
    described in subsection (b) as a result of the receipt by the person of
    health benefits under section 1086 of title 10, United States Code,
    after the termination of the person's eligibility for such benefits.
        (b) Persons Eligible for Waiver.--A person shall be eligible for
    relief 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;

    [[Page 110 STAT. 386]]

                (2) in the absence of such paragraph, would have been
            eligible for health benefits under such section; and
                (3) at the time of the receipt of such benefits, satisfied
            the criteria specified in subparagraphs (A) and (B) of paragraph
            (2) of such subsection.

        (c) Extent of Waiver Authority.--The authority to waive the
    collection of payments pursuant to this section shall apply with regard
    to health benefits provided under section 1086 of title 10, United
    States Code, to persons described in subsection (b) during the period
    beginning on January 1, 1967, and ending on the later of--
                (1) the termination date of any special enrollment period
            provided under title XVIII of the Social Security Act (42 U.S.C.
            1395 et seq.) specifically for such persons; and
                (2) July 1, 1996.

        (d) Definitions.--For purposes of this section, the term
    ``administering Secretaries'' has the meaning given such term in section
    1072(3) of title 10, United States Code.
    SEC. 744.  <<NOTE: 10 USC 1092 note.>> DEMONSTRATION PROGRAM TO
                            TRAIN MILITARY MEDICAL PERSONNEL IN
                            CIVILIAN SHOCK TRAUMA UNITS.

        (a) Demonstration Program.--(1) Not later than April 1, 1996, the
    Secretary of Defense shall implement a demonstration program to evaluate
    the feasibility of providing shock trauma training for military medical
    personnel through one or more public or nonprofit hospitals. The
    Secretary shall carry out the program pursuant to an agreement with such
    hospitals.
        (2) Under the agreement with a hospital, the Secretary shall assign
    military medical personnel participating in the demonstration program to
    temporary duty in shock trauma units operated by the hospitals that are
    parties to the agreement.
        (3) The agreement shall require, as consideration for the services
    provided by military medical personnel under the agreement, that the
    hospital provide appropriate care to members of the Armed Forces and to
    other persons whose care in the hospital would otherwise require
    reimbursement by the Secretary. The value of the services provided by
    the hospitals shall be at least equal to the value of the services
    provided by military medical personnel under the agreement.
        (b) Termination of Program.--The authority of the Secretary of
    Defense to conduct the demonstration program under this section, and any
    agreement entered into under the demonstration program, shall expire on
    March 31, 1998.
        (c) Report and Evaluation of Program.--(1) Not later than March 1 of
    each year in which the demonstration program is conducted under this
    section, the Secretary of Defense shall submit to Congress a report
    describing the scope and activities of the demonstration program during
    the preceding year.
        (2) Not later than May 1, 1998, the Comptroller General of the
    United States shall submit to Congress a report evaluating the
    effectiveness of the demonstration program in providing shock trauma
    training for military medical personnel.
    SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO
                            DETERMINE APPROPRIATE FORCE LEVELS OF
                            WARTIME MEDICAL PERSONNEL.

        (a) Study Required.--The Comptroller General of the United States
    shall conduct a study to evaluate the reasonableness of

    [[Page 110 STAT. 387]]

    the models used by each military department for determining the
    appropriate wartime force level for medical personnel in the department.
    The study shall include the following:
                (1) An assessment of the modeling techniques used by each
            department.
                (2) An analysis of the data used in the models to identify
            medical personnel requirements.
                (3) An identification of the ability of the models to
            integrate personnel of reserve components to meet department
            requirements.
                (4) An evaluation of the ability of the Secretary of Defense
            to integrate the various modeling efforts into a comprehensive,
            coordinated plan for obtaining the optimum force level for
            wartime medical personnel.

        (b) Report of Study.--Not later than June 30, 1996, the Comptroller
    General shall report to Congress on the results of the study conducted
    under subsection (a).
    SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE FOR
                            COVERED BENEFICIARIES ENTITLED TO
                            MEDICARE.

        Not later than March 1, 1996, the Secretary of Defense shall submit
    to Congress a report evaluating the feasibility, costs, and consequences
    for the military health care system of improving access to the system
    for covered beneficiaries under chapter 55 of title 10, United States
    Code, who have limited
    access to military medical treatment facilities and are ineligible for
    the Civilian Health and Medical Program of the Uniformed Services under
    section 1086(d)(1) of such title. The alternatives that the Secretary
    shall consider to improve access for such covered beneficiaries shall
    include--
                (1) whether CHAMPUS should serve as a second payer for
            covered beneficiaries 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
                (2) whether such covered beneficiaries should be offered
            enrollment in the Federal Employees Health Benefits program
            under chapter 89 of title 5, United States Code.
    SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY MEDICAL
                            CENTER, COLORADO, ON PROVISION OF CARE TO
                            MILITARY PERSONNEL, RETIRED MILITARY
                            PERSONNEL, AND THEIR DEPENDENTS.

        (a) Effect of Closure on Members Experiencing Health Difficulties
    Associated With Persian Gulf Syndrome.--Not later than 90 days after the
    date of the enactment of this Act, the Secretary of Defense shall submit
    to Congress a report that--
                (1) assesses the effects of the closure of Fitzsimons Army
            Medical Center, Colorado, on the capability of the Department of
            Defense to provide appropriate and adequate health care to
            members and former members of the Armed Forces who suffer from
            undiagnosed illnesses (or combination of illnesses) as a result
            of service in the Armed Forces in the Southwest Asia theater of
            operations during the Persian Gulf conflict; and
                (2) describes the plans of the Secretary of Defense and the
            Secretary of the Army to ensure that adequate and appropriate
            health care is provided to such members for such illnesses (or
            combination of illnesses).

    [[Page 110 STAT. 388]]

        (b) Effect of Closure on Other Covered Beneficiaries.--The report
    required by subsection (a) shall also include--
                (1) an assessment of the effects of the closure of
            Fitzsimons Army Medical Center on the capability of the
            Department of Defense to provide appropriate and adequate health
            care to the dependents of members and former members of the
            Armed Forces and retired members and their dependents who
            currently obtain care at the medical center; and
                (2) a description of the plans of the Secretary of Defense
            and the Secretary of the Army to ensure that adequate and
            appropriate health care is provided to such persons, as called
            for in the recommendations of the Secretary of Defense for the
            closure of Fitzsimons Army Medical Center.
    SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE SERVICES
                            FOR COVERED BENEFICIARIES ADVERSELY
                            AFFECTED BY CLOSURES OF MILITARY MEDICAL
                            TREATMENT FACILITIES.

        (a) Findings.--Congress finds the following:
                (1) Military installations selected for closure in the 1991
            and 1993 rounds of the base closure process will soon close.
                (2) Additional military installations have been selected for
            closure in the 1995 round of the base closure process.
                (3) Some of the military installations selected for closure
            include military medical treatment facilities.
                (4) As a result of these base closures, tens of thousands of
            covered beneficiaries under chapter 55 of title 10, United
            States Code, who reside in the vicinity of such installations
            will be left without immediate access to military medical
            treatment facilities.

        (b) Sense of Congress.--In light of the findings specified in
    subsection (a), it is the sense of Congress that the Secretary of
    Defense should take all appropriate steps necessary to ensure the
    continuation of medical and pharmaceutical benefits for covered
    beneficiaries adversely affected by the closure of military
    installations.
    SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL
                            DIRECTIVES.

        (a) Requirement for Recognition by States.--(1) Chapter 53 of title
    10, United States Code, is amended by inserting after section 1044b the
    following new section:
    ``Sec. 1044c. Advance medical directives of members and
                          dependents: requirement for recognition by
                          States

        ``(a) Instruments To Be Given Legal Effect Without Regard to State
    Law.--An advance medical directive executed by a person eligible for
    legal assistance--
                ``(1) is exempt from any requirement of form, substance,
            formality, or recording that is provided for advance medical
            directives under the laws of a State; and
                ``(2) shall be given the same legal effect as an advance
            medical directive prepared and executed in accordance with the
            laws of the State concerned.

        ``(b) Advance Medical Directives.--For purposes of this section, an
    advance medical directive is any written declaration that--

    [[Page 110 STAT. 389]]

                ``(1) sets forth directions regarding the provision,
            withdrawal, or withholding of life-prolonging procedures,
            including hydration and sustenance, for the declarant whenever
            the declarant has a terminal physical condition or is in a
            persistent vegetative state; or
                ``(2) authorizes another person to make health care
            decisions for the declarant, under circumstances stated in the
            declaration, whenever the declarant is incapable of making
            informed health care decisions.

        ``(c) <<NOTE: Regulations.>> Statement To Be Included.--(1) Under
    regulations prescribed by the Secretary concerned, an advance medical
    directive prepared by an attorney authorized to provide legal assistance
    shall contain a statement that sets forth the provisions of subsection
    (a).

        ``(2) Paragraph (1) shall not be construed to make inapplicable the
    provisions of subsection (a) to an advance medical directive that does
    not include a statement described in that paragraph.
        ``(d) States Not Recognizing Advance Medical Directives.--Subsection
    (a) does not make an advance medical directive enforceable in a State
    that does not otherwise recognize and enforce advance medical directives
    under the laws of the State.
        ``(e) Definitions.--In this section:
                ``(1) The term `State' includes the District of Columbia,
            the Commonwealth of Puerto Rico, and a possession of the United
            States.
                ``(2) The term `person eligible for legal assistance' means
            a person who is eligible for legal assistance under section 1044
            of this title.
                ``(3) The term `legal assistance' means legal services
            authorized under section 1044 of this title.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1044b the
    following:

    ``1044c. Advance medical directives of members and dependents:
               requirement for recognition by States.''.

        (b) <<NOTE: 10 USC 1044c note.>> Effective Date.--Section 1044c of
    title 10, United States Code, shall take effect on the date of the
    enactment of this Act and shall apply to advance medical directives
    referred to in that section that are executed before, on, or after that
    date.

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

                         Subtitle A--Acquisition Reform

    SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF
                            APPROPRIATIONS TO CONTRACTS AT OR BELOW
                            SIMPLIFIED ACQUISITION THRESHOLD.

        Section 2207 of title 10, United States Code, is amended--
                (1) by inserting ``(a)'' before ``Money appropriated''; and
                (2) by adding at the end the following new subsection:

        ``(b) This section does not apply to a contract that is for an
    amount not greater than the simplified acquisition threshold (as

    [[Page 110 STAT. 390]]

    defined in section 4(11) of the Office of Federal Procurement Policy Act
    (41 U.S.C. 403(11))).''.
    SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

        (a) Repeal of Duplicative Authority and Restriction.--Section 2356
    of title 10, United States Code, is repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 139 of title 10, United States Code, is amended by striking out
    the item relating to section 2356.
    SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND SHIP
                            SPARE PARTS.

        (a) Repeal.--Section 2383 of title 10, United States Code, is
    repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 141 of such title is amended by striking out the item relating
    to section 2383.

    SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

        Section 2539b(c) of title 10, United States Code, is amended by
    inserting ``and indirect'' after ``recoup the direct'' in the second
    sentence.
    SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH
                            ACTIVITIES.

        Section 2364 of title 10, United States Code, is amended--
                (1) in subsection (b)(5), by striking out ``milestone O,
            milestone I, and milestone II'' and inserting in lieu thereof
            ``acquisition program''; and
                (2) in subsection (c), by striking out paragraphs (2), (3),
            and (4) and inserting in lieu thereof the following:
                ``(2) The term `acquisition program decision' has the
            meaning prescribed by the Secretary of Defense in
            regulations.''.
    SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE
                            LIMITATION.

        (a) Limitation.--(1) Paragraph (3) of section 2534(a) of title 10,
    United States Code, is amended to read as follows:
                ``(3) Components for naval vessels.--(A) The following
            components:
                        ``(i) Air circuit breakers.
                        ``(ii) Welded shipboard anchor and mooring chain
                    with a diameter of four inches or less.
                        ``(iii) Vessel propellers with a diameter of six
                    feet or more.
                ``(B) The following components of vessels, to the extent
            they are unique to marine applications: gyrocompasses,
            electronic navigation chart systems, steering controls, pumps,
            propulsion and machinery control systems, and totally enclosed
            lifeboats.''.

        (2) Subsection (b) of section 2534 of such title is amended by
    adding at the end the following:
                ``(3) Manufacturer of vessel propellers.--In the case of a
            procurement of vessel propellers referred to in subsection
            (a)(3)(A)(ii), the manufacturer of the propellers meets the
            requirements of this subsection only if--
                        ``(A) the manufacturer meets the requirements set
                    forth in paragraph (1); and

    [[Page 110 STAT. 391]]

                        ``(B) all castings incorporated into such propellers
                    are poured and finished in the United States.''.

        (3) Paragraph (1) of section 2534(c) of such title is amended to
    read as follows:
                ``(1) Components for naval vessels.--Subsection (a) does not
            apply to a procurement of spare or repair parts needed to
            support components for naval vessels produced or manufactured
            outside the United States.''.

        (4) Section 2534 of such title is amended by adding at the end the
    following new subsection:
        ``(h) Implementation of Naval Vessel Component Limitation.--In
    implementing subsection (a)(3)(B), the Secretary of Defense--
                ``(1) may not use contract clauses or certifications; and
                ``(2) shall use management and oversight techniques that
            achieve the objective of the subsection without imposing a
            significant management burden on the Government or the
            contractor involved.''.

        (5) Subsection (a)(3)(B) of section 2534 of title 10, United States
    Code, as amended by paragraph (1), shall apply only to contracts entered
    into after March 31, 1996.
        (b) Extension of Limitation Relating to Ball Bearings and Roller
    Bearings.--Section 2534(c)(3) of such title is amended by striking out
    ``October 1, 1995'' and inserting in lieu thereof ``October 1, 2000''.
        (c) Termination of Vessel Propeller Limitation.--Section 2534(c) of
    such title is amended by adding at the end the following new paragraph:
                `` <<NOTE: Termination date.>> (4) Vessel propellers.--
            Subsection (a)(3)(A)(iii) and this paragraph shall cease to be
            effective on the date occurring two years after the date of the
            enactment of the National Defense Authorization Act for Fiscal
            Year 1996.''.

        (d) Inapplicability of Simplified Acquisition Limitation to
    Contracts for Ball Bearings and Roller Bearings.--Section 2534(g) of
    title 10, United States Code, is amended--
                (1) by inserting ``(1)'' before ``This section''; and
                (2) by adding at the end the following new paragraph:

        ``(2) Paragraph (1) does not apply to contracts for items described
    in subsection (a)(5) (relating to ball bearings and roller bearings),
    notwithstanding section 33 of the Office of Federal Procurement Policy
    Act (41 U.S.C. 429).''.

    SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

        (a) In General.--(1) Section 2401a of title 10, United States Code,
    is amended--
                (A) by inserting before ``The Secretary of Defense'' the
            following subsection heading: ``(b) Limitation on Contracts With
            Terms of 18 Months or More.--'';
                (B) by inserting after the section heading the following:

        ``(a) Leasing of Commercial Vehicles and Equipment.--The Secretary
    of Defense may use leasing in the acquisition of commercial vehicles and
    equipment whenever the Secretary determines that leasing of such
    vehicles is practicable and efficient.''; and
                (C) by amending the section heading to read as follows:

    [[Page 110 STAT. 392]]

    ``Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft''.

        (2) The item relating to section 2401a in the table of sections at
    the beginning of chapter 141 of such title is amended to read as
    follows:

    ``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

        (b) 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 setting forth changes in
    legislation that would be required to facilitate the use of leasing in
    the acquisition of equipment by the Department of Defense.
        (c) <<NOTE: 10 USC 2401a note.>> Pilot Program.--(1) The Secretary
    of the Army may conduct a pilot program for leasing commercial utility
    cargo vehicles in accordance with this subsection.

        (2) Under the pilot program--
                (A) the Secretary may trade existing commercial utility
            cargo vehicles of the Army for credit against the costs of
            leasing new replacement commercial utility cargo vehicles for
            the Army;
                (B) the quantities and trade-in value of commercial utility
            cargo vehicles to be traded in shall be subject to negotiation
            between the Secretary and the lessors of the new replacement
            commercial utility cargo vehicles;
                (C) the lease agreement for a new commercial utility cargo
            vehicle may be executed with or without an option to purchase at
            the end of the lease period;
                (D) the lease period for a new commercial utility cargo
            vehicle may not exceed the warranty period for the vehicle; and
                (E) up to 40 percent of the validated requirement for
            commercial utility cargo vehicles may be satisfied by leasing
            such vehicles, except that one or more options for satisfying
            the remainder of the validated requirement may be provided for
            and exercised (subject to the requirements of paragraph (6)).

        (3) In awarding contracts under the pilot program, the Secretary
    shall comply with section 2304 of title 10, United States Code.
        (4) The pilot program may not be commenced until--
                (A) <<NOTE: Reports.>> the Secretary submits to the
            Committee on Armed Services of the Senate and the Committee on
            National Security of the House of Representatives a report that
            contains the plans of the Secretary for implementing the program
            and that sets forth in detail the savings in operating and
            support costs expected to be derived from retiring older
            commercial utility cargo vehicles, as compared to the expected
            costs of leasing newer commercial utility cargo vehicles; and
                (B) a period of 30 calendar days has elapsed after
            submission of such report.

        (5) <<NOTE: Reports.>> Not later than one year after the date on
    which the first lease under the pilot program is entered into, the
    Secretary of the Army shall submit to the Committee on Armed Services of
    the Senate and the Committee on National Security of the House of
    Representatives a report on the status of the pilot program. Such report
    shall be based on at least six months of experience in operating the
    pilot program.

    [[Page 110 STAT. 393]]

        (6) The Secretary may exercise an option provided for under
    paragraph (2) only after a period of 60 days has elapsed after the
    submission of the report.
        (7) No lease of commercial utility cargo vehicles may be entered
    into under the pilot program after September 30, 2000.
    SEC. 808.  <<NOTE: 10 USC 2501 note.>> COST REIMBURSEMENT RULES
                            FOR INDIRECT COSTS ATTRIBUTABLE TO PRIVATE
                            SECTOR WORK OF DEFENSE CONTRACTORS.

        (a) Defense Capability Preservation Agreement.--The Secretary of
    Defense may enter into an agreement, to be known as a ``defense
    capability preservation agreement'', with a defense contractor under
    which the cost reimbursement rules described in subsection (b) shall be
    applied. Such an agreement may be entered into in any case in which the
    Secretary determines that the application of such cost reimbursement
    rules would facilitate the achievement of the policy objectives set
    forth in section 2501(b) of title 10, United States Code.
        (b) Cost Reimbursement Rules.--(1) The cost reimbursement rules
    applicable under an agreement entered into under subsection (a) are as
    follows:
                (A) The Department of Defense shall, in determining the
            reimbursement due a contractor for its indirect costs of
            performing a defense contract, allow the contractor to allocate
            indirect costs to its private sector work only to the extent of
            the contractor's allocable indirect private sector costs,
            subject to subparagraph (C).
                (B) For purposes of subparagraph (A), the allocable indirect
            private sector costs of a contractor are those costs of the
            contractor that are equal to the sum of--
                        (i) the incremental indirect costs attributable to
                    such work; and
                        (ii) the amount by which the revenue attributable to
                    such private sector work exceeds the sum of--
                              (I) the direct costs attributable to such
                          private sector work; and
                              (II) the incremental indirect costs
                          attributable to such private sector work.
                (C) The total amount of allocable indirect private sector
            costs for a contract in any year of the agreement may not exceed
            the amount of indirect costs that a contractor would have
            allocated to its private sector work during that year in
            accordance with the contractor's established accounting
            practices.

        (2) The cost reimbursement rules set forth in paragraph (1) may be
    modified by the Secretary of Defense if the Secretary of Defense
    determines that modifications are appropriate to the particular
    situation to facilitate achievement of the policy set forth in section
    2501(b) of title 10, United States Code.
        (c) Implementation.--Not later than 90 days after the date of the
    enactment of this Act, the Secretary of Defense shall establish
    application procedures and procedures for expeditious consideration of
    defense capability preservation agreements as authorized by this
    section.
        (d) Contracts Covered.--An agreement entered into with a contractor
    under subsection (a) shall apply to each Department of Defense contract
    with the contractor in effect on the date on

    [[Page 110 STAT. 394]]

    which the agreement is entered into and each Department of Defense
    contract that is awarded to the contractor during the term of the
    agreement.
        (e) Reports.--Not later than one year after the date of the
    enactment of this Act, the Secretary of Defense shall submit to the
    congressional defense committees a report setting forth--
                (1) the number of applications received and the number of
            applications approved for defense capability preservation
            agreements; and
                (2) any changes to the authority in this section that the
            Secretary recommends to further facilitate the policy set forth
            in section 2501(b) of title 10, United States Code.

    SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

        Notwithstanding any other provision of law, neither section 901(b)
    of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) nor section 2631 of
    title 10, United States Code, shall be included before May 1, 1996, on
    any list promulgated under section 34(b) of the Office of Federal
    Procurement Policy Act (41 U.S.C. 430(b)).

    SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

        Section 6009 of the Federal Acquisition Streamlining Act of 1994
    (Public Law 103-355; 108 Stat. 3367) <<NOTE: 5 USC app. 5 note.>> is
    amended to read as follows:
    ``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF
                            AUDIT RECOMMENDATIONS.

        ``(a) Management Decisions.--(1) The head of a Federal agency shall
    make management decisions on all findings and recommendations set forth
    in an audit report of the inspector general of the agency within a
    maximum of six months after the issuance of the report.

        ``(2) The head of a Federal agency shall make management decisions
    on all findings and recommendations set forth in an audit report of any
    auditor from outside the Federal Government within a maximum of six
    months after the date on which the head of the agency receives the
    report.
        ``(b) Completion of Final Action.--The head of a Federal agency
    shall complete final action on each management decision required with
    regard to a recommendation in an inspector general's report under
    subsection (a)(1) within 12 months after the date of the inspector
    general's report. If the head of the agency fails to complete final
    action with regard to a management decision within the 12-month period,
    the inspector general concerned shall identify the matter in each of the
    inspector general's semiannual reports pursuant to section 5(a)(3) of
    the Inspector General Act of 1978 (5 U.S.C. App.) until final action on
    the management decision is completed.''.
    SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE
                            SUBCONTRACTING PLANS.

        (a) Revision of Authority.--Subsection (a) of section 834 of
    National Defense Authorization Act for Fiscal Years 1990 and 1991 (15
    U.S.C. 637 note) is amended by striking out paragraph (1) and inserting
    in lieu thereof the following:
        ``(1) <<NOTE: Establishment.>> The Secretary of Defense shall
    establish a test program under which contracting activities in the
    military departments and the Defense Agencies are authorized to
    undertake one or more

    [[Page 110 STAT. 395]]

    demonstration projects to determine whether the negotiation and
    administration of comprehensive subcontracting plans will reduce
    administrative burdens on contractors while enhancing opportunities
    provided under Department of Defense contracts for small business
    concerns and small business concerns owned and controlled by socially
    and economically disadvantaged individuals. In selecting the contracting
    activities to undertake demonstration projects, the Secretary shall take
    such action as is necessary to ensure that a broad range of the supplies
    and services acquired by the Department of Defense are included in the
    test program.''.

        (b) Covered Contractors.--Subsection (b) of such section is amended
    by striking out paragraph (3) and inserting in lieu thereof the
    following:
        ``(3) A Department of Defense contractor referred to in paragraph
    (1) is, with respect to a comprehensive subcontracting plan negotiated
    in any fiscal year, a business concern that,
    during the immediately preceding fiscal year, furnished the Department
    of Defense with supplies or services (including professional services,
    research and development services, and construction services) pursuant
    to at least three Department of Defense contracts having an aggregate
    value of at least $5,000,000.''.

        (c) Technical Amendments.--Such section is amended--
                (1) by striking out subsection (g); and
                (2) by redesignating subsection (h) as subsection (g).
    SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST PURPOSES.

        Section 2373(b) of title 10, United States Code, is amended by
    inserting ``only'' after ``applies'' in the second sentence.
    SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES,
                            TECHNICAL DATA, AND COMPUTER SOFTWARE.

        Section 2386(3) of title 10, United States Code, is amended to read
    as follows:
                ``(3) Design and process data, technical data, and computer
            software.''.
    SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE ACQUISITION
                            PROGRAMS.

        Section 2434(b)(1)(A) of title 10, United States Code, is amended to
    read as follows:
                        ``(A) be prepared--
                              ``(i) by an office or other entity that is not
                          under the supervision, direction, or control of
                          the military department, Defense Agency, or other
                          component of the Department of Defense that is
                          directly responsible for carrying out the
                          development or acquisition of the program; or
                              ``(ii) if the decision authority for the
                          program has been delegated to an official of a
                          military department, Defense Agency, or other
                          component of the Department of Defense, by an
                          office or other entity that is not directly
                          responsible for carrying out the development or
                          acquisition of the program; and''.

    [[Page 110 STAT. 396]]

    SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND EQUIPPING OF
                NAVAL VESSELS.

        (a) Applicability of Certain Law.--Chapter 633 of title 10, United
    States Code, is amended by inserting after section 7297 the following:

    ``Sec. 7299. Contracts: applicability of Walsh-Healey Act

        ``Each contract for the construction, alteration, furnishing, or
    equipping of a naval vessel is subject to the Walsh-Healey Act (41
    U.S.C. 35 et seq.) unless the President determines that this requirement
    is not in the interest of national defense.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    7297 the following:

    ``7299. Contracts: applicability of Walsh-Healey Act.''.

                            Subtitle B--Other Matters

    SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

        (a) Funding.--Of the amount authorized to be appropriated under
    section 301(5), $12,000,000 shall be available for carrying out the
    provisions of chapter 142 of title 10, United States Code.
        (b) Specific Programs.--Of the amounts made available pursuant to
    subsection (a), $600,000 shall be available for fiscal year 1996 for the
    purpose of carrying out programs sponsored by eligible entities referred
    to in subparagraph (D) of section 2411(1) of title 10, United States
    Code, that provide procurement technical assistance in distressed areas
    referred to in subparagraph (B) of section 2411(2) of such title. If
    there is an insufficient number of satisfactory proposals for
    cooperative agreements in such distressed areas to allow effective use
    of the funds made available in accordance with this subsection in such
    areas, the funds shall be allocated among the Defense Contract
    Administration Services regions in accordance with section 2415 of such
    title.

    SEC. 822. <<NOTE: 10 USC 2302 note.>> DEFENSE FACILITY-WIDE PILOT
                PROGRAM.

        (a) Authority To Conduct Defense Facility-Wide Pilot Program.--The
    Secretary of Defense may conduct a pilot program, to be known as the
    ``defense facility-wide pilot program'', for the purpose of determining
    the potential for increasing the efficiency and effectiveness of the
    acquisition process in facilities by using commercial practices on a
    facility-wide basis.
        (b) Designation of Participating Facilities.--(1) Subject to
    paragraph (2), the Secretary may designate up to two facilities as
    participants in the defense facility-wide pilot program.
        (2) The Secretary may designate for participation in the pilot
    program only those facilities that are authorized to be so designated in
    a law authorizing appropriations for national defense programs that is
    enacted after the date of the enactment of this Act.
        (c) Scope of Program.--At a facility designated as a participant in
    the pilot program, the pilot program shall consist of the following:
                (1) All contracts and subcontracts for defense supplies and
            services that are performed at the facility.
                (2) All Department of Defense contracts and all subcontracts
            under Department of Defense contracts performed

    [[Page 110 STAT. 397]]

            elsewhere that the Secretary determines are directly and
            substantially related to the production of defense supplies and
            services at the facility and are necessary for the pilot
            program.

        (d) Criteria for Designation of Participating Facilities.--The
    Secretary shall establish criteria for selecting a facility for
    designation as a participant in the pilot program. In developing such
    criteria, the Secretary shall consider the following:
                (1) The number of existing and anticipated contracts and
            subcontracts performed at the facility--
                        (A) for which contractors are required to provide
                    certified cost or pricing data pursuant to section 2306a
                    of title 10, United States Code; and
                        (B) which are administered with the application of
                    cost accounting standards under section 26(f) of the
                    Office of Federal Procurement Policy Act (41 U.S.C.
                    422(f)).
                (2) The relationship of the facility to other organizations
            and facilities performing under contracts with the Department of
            Defense and subcontracts under such contracts.
                (3) The impact that the participation of the facility under
            the pilot program would have on competing domestic
            manufacturers.
                (4) Such other factors as the Secretary considers
            appropriate.

        (e) Notification.--(1) The Secretary shall transmit to the Committee
    on Armed Services of the Senate and the Committee on National Security
    of the House of Representatives a written notification of each facility
    proposed to be designated by the Secretary for participation in the
    pilot program.
        (2) The Secretary shall include in the notification regarding a
    facility designated for participation in the program a management plan
    addressing the following:
                (A) The proposed treatment of research and development
            contracts or subcontracts to be performed at the facility during
            the pilot program.
                (B) The proposed treatment of the cost impact of the use of
            commercial practices on the award and administration of
            contracts and subcontracts performed at the facility.
                (C) The proposed method for reimbursing the contractor for
            existing and new contracts.
                (D) The proposed method for measuring the performance of the
            facility for meeting the management goals of the
            Secretary.
                (E) Estimates of the annual amount and the total amount of
            the contracts and subcontracts covered under the pilot
            program.

        (3)(A) The Secretary shall ensure that the management plan for a
    facility provides for attainment of the following objectives:
                (i) A significant reduction of the cost to the Government
            for programs carried out at the facility.
                (ii) A reduction of the schedule associated with programs
            carried out at the facility.
                (iii) An increased use of commercial practices and
            procedures for programs carried out at the facility.
                (iv) Protection of a domestic manufacturer competing for
            contracts at such facility from being placed at a significant
            competitive disadvantage by the participation of the facility in
            the pilot program.

    [[Page 110 STAT. 398]]

        (B) The management plan for a facility shall also require that all
    or substantially all of the contracts to be awarded and performed at the
    facility after the designation of that facility under subsection (b),
    and all or substantially all of the subcontracts to be awarded under
    those contracts and performed at the facility after the designation,
    be--
                (i) for the production of supplies or services on a firm-
            fixed price basis;
                (ii) awarded without requiring the contractors or
            subcontractors to provide certified cost or pricing data
            pursuant to section 2306a of title 10, United States Code; and
                (iii) awarded and administered without the application of
            cost accounting standards under section 26(f) of the Office of
            Federal Procurement Policy Act (41 U.S.C. 422(f)).

        (f) Exemption From Certain Requirements.--In the case of a contract
    or subcontract that is to be performed at a facility designated for
    participation in the defense facility-wide pilot program and that is
    subject to section 2306a of title 10, United States Code, or section
    26(f) of the Office of Federal Procurement Policy Act (41 U.S.C.
    422(f)), the Secretary of Defense may exempt such contract or
    subcontract from the requirement to obtain certified cost or pricing
    data under such section 2306a or the requirement to apply mandatory cost
    accounting standards under such section 26(f) if the Secretary
    determines that the contract or subcontract--
                (1) is within the scope of the pilot program (as described
            in subsection (c)); and
                (2) is fairly and reasonably priced based on information
            other than certified cost and pricing data.

        (g) Special Authority.--The authority provided under subsection (a)
    includes authority for the Secretary of Defense--
                (1) to apply any amendment or repeal of a provision of law
            made in this Act to the pilot program before the effective date
            of such amendment or repeal; and
                (2) to apply to a procurement of items other than commercial
            items under such program--
                        (A) the authority provided in section 34 of the
                    Office of Federal Procurement Policy Act (41 U.S.C. 430)
                    to waive a provision of law in the case of commercial
                    items, and
                        (B) any exception applicable under this Act or the
                    Federal Acquisition Streamlining Act of 1994 (Public Law
                    103-355) (or an amendment made by a provision of either
                    Act) in the case of commercial items,
            before the effective date of such provision (or amendment) to
            the extent that the Secretary determines necessary to test the
            application of such waiver or exception to procurements of items
            other than commercial items.

        (h) Applicability.--(1) Subsections (f) and (g) apply to the
    following contracts, if such contracts are within the scope of the pilot
    program at a facility designated for the pilot program under subsection
    (b):
                (A) A contract that is awarded or modified during the period
            described in paragraph (2).
                (B) A contract that is awarded before the beginning of such
            period, that is to be performed (or may be performed), in whole
            or in part, during such period, and that
    may be modified as appropriate at no cost to the Government.

    [[Page 110 STAT. 399]]

        (2) The period referred to in paragraph (1), with respect to a
    facility designated under subsection (b), is the period that--
                (A) begins 45 days after the date of the enactment of the
            Act authorizing the designation of that facility in accordance
            with paragraph (2) of such subsection; and
                (B) ends on September 30, 2000.

        (i) Commercial Practices Encouraged.--With respect to contracts and
    subcontracts within the scope of the defense facility-wide pilot
    program, the Secretary of Defense may, to the extent the Secretary
    determines appropriate and in accordance with applicable law, adopt
    commercial practices in the administration of contracts and
    subcontracts. Such commercial practices may include the following:
                (1) Substitution of commercial oversight and inspection
            procedures for Government audit and access to records.
                (2) Incorporation of commercial oversight, inspection, and
            acceptance procedures.
                (3) Use of alternative dispute resolution techniques
            (including arbitration).
                (4) Elimination of contract provisions authorizing the
            Government to make unilateral changes to contracts.
    SEC. 823.  <<NOTE: Reports.>> TREATMENT OF DEPARTMENT OF DEFENSE
                            CABLE TELEVISION FRANCHISE AGREEMENTS.

        Not later than 180 days after the date of the enactment of this Act,
    the chief judge of the United States Court of Federal Claims shall
    transmit to Congress a report containing an advisory opinion on the
    following two questions:
                (1) Is it within the power of the executive branch to treat
            cable television franchise agreements for the construction,
            installation, or capital improvement of cable television systems
            at military installations of the Department of Defense as
            contracts under part 49 of the Federal Acquisition Regulation
            without violating title VI of the Communications Act of 1934 (47
            U.S.C. 521 et seq.)?
                (2) If the answer to the question in paragraph (1) is in the
            affirmative, is the executive branch required by law to so treat
            such franchise agreements?

    SEC. 824. <<NOTE: 10 USC 2302 note.>> EXTENSION OF PILOT MENTOR-PROTEGE
                PROGRAM.

        Section 831(j)(1) of the National Defense Authorization Act for
    Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by striking out
    ``1995'' and inserting in lieu thereof ``1996''.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                           Subtitle A--General Matters

    SEC. 901.  <<NOTE: 10 USC 131 note.>> ORGANIZATION OF THE OFFICE
                            OF THE SECRETARY OF DEFENSE.

        (a) Findings.--Congress makes the following findings:
                (1) The statutory provisions that as of the date of the
            enactment of this Act govern the organization of the Office of
            the Secretary of Defense have evolved from enactment of

    [[Page 110 STAT. 400]]

            a number of executive branch legislative proposals and
            congressional initiatives over a period of years.
                (2) The May 1995 report of the congressionally mandated
            Commission on Roles and Missions of the Armed Forces included a
            number of recommendations relating to the Office of the
            Secretary of Defense.
                (3) The Secretary of Defense has decided to create a special
            Department task force and to conduct other reviews to review
            many of the Commission's recommendations.
                (4) The Secretary of Defense has decided to institute a 5
            percent per year reduction of civilian personnel assigned to the
            Office of the Secretary of Defense, including the Washington
            Headquarters Service and the Defense Support Activities, for the
            period from fiscal year 1996 through fiscal year 2001.
                (5) Over the ten-year period from 1986 through 1995, defense
            spending in real dollars has been reduced by 34 percent and
            military end-strengths have been reduced by 28 percent. During
            the same period, the number of civilian employees of the Office
            of the Secretary of Defense has increased by 22 percent.
                (6) To achieve greater efficiency and to revalidate the role
            and mission of the Office of the Secretary of Defense, a
            comprehensive review of the organizations and functions of that
            Office and of the personnel needed to carry out those functions
            is required.

        (b) Review.--The Secretary of Defense shall conduct a further review
    of the organizations and functions of the Office of the Secretary of
    Defense, including the Washington Headquarters Service and the Defense
    Support Activities, and the personnel needed to carry out those
    functions. The review shall include the following:
                (1) An assessment of the appropriate functions of the Office
            and whether the Office of the Secretary of Defense or some of
            its component parts should be organized along mission lines.
                (2) An assessment of the adequacy of the present
            organizational structure to efficiently and effectively support
            the Secretary in carrying out his responsibilities in a manner
            that ensures civilian authority in the Department of Defense.
                (3) An assessment of the advantages and disadvantages of the
            use of political appointees to fill the positions of the various
            Under Secretaries of Defense, Assistant Secretaries of Defense,
            and Deputy Under Secretaries of Defense.
                (4) An assessment of the extent of unnecessary duplication
            of functions between the Office of the Secretary of Defense and
            the Joint Staff.
                (5) An assessment of the extent of unnecessary duplication
            of functions between the Office of the Secretary of Defense and
            the military departments.
                (6) An assessment of the appropriate number of positions
            referred to in paragraph (3) and of Deputy Assistant Secretaries
            of Defense.
                (7) An assessment of whether some or any of the functions
            currently performed by the Office of Humanitarian and Refugee
            Affairs are more properly or effectively performed by another
            agency of Government or elsewhere within the Department of
            Defense.

    [[Page 110 STAT. 401]]

                (8) An assessment of the efficacy of the Joint Requirements
            Oversight Council and whether it is advisable or necessary to
            establish a statutory charter for this organization.
                (9) An assessment of any benefits or efficiencies derived
            from decentralizing certain functions currently performed by the
            Office of the Secretary of Defense.
                (10) An assessment of the appropriate size, number, and
            functional responsibilities of the Defense Agencies and other
            Department of Defense support organizations.

        (c) Report.--Not later than March 1, 1996, the Secretary of Defense
    shall submit to the congressional defense committees a report containing
    --
                (1) his findings and conclusions resulting from the review
            under subsection (b); and
                (2) a plan for implementing resulting recommendations,
            including proposals for legislation (with supporting rationale)
            that would be required as a result of the review.

        (d) <<NOTE: Effective date.>> Personnel Reduction.--(1) Effective
    October 1, 1999, the number of OSD personnel may not exceed 75 percent
    of the number of OSD personnel as of October 1, 1994.

        (2) For purposes of this subsection, the term ``OSD personnel''
    means military and civilian personnel of the Department of Defense who
    are assigned to, or employed in, functions in the Office of the
    Secretary of Defense (including Direct Support Activities of that Office
    and the Washington Headquarters Services of the Department of Defense).
        (3) In carrying out reductions in the number of personnel assigned
    to, or employed in, the Office of the Department of Defense in order to
    comply with paragraph (1), the Secretary may not reassign functions
    solely in order to evade the requirement contained in that paragraph.
        (4) If the Secretary of Defense determines, and certifies to
    Congress, that the limitation in paragraph (1) would adversely affect
    United States national security, the limitation under paragraph (1)
    shall be applied by substituting ``80 percent'' for ``75 percent''.
    SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE
                            POSITIONS.

        (a) Reduction.--Section 138(a) of title 10, United States Code, is
    amended by striking out ``eleven'' and inserting in lieu thereof
    ``ten''.

        (b) Conforming Amendment.--Section 5315 of title 5, United States
    Code, is amended by striking out ``(11)'' after ``Assistant Secretaries
    of Defense'' and inserting in lieu thereof ``(10)''.
    SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND
                            OFFICES IN OFFICE OF THE SECRETARY OF
                            DEFENSE.

        (a) <<NOTE: 10 USC 131 note.>> Effective Date.--The amendments made
    by this section shall take effect on January 31, 1997.

        (b) Termination of Specification by Law of ASD Positions.--
    Subsection (b) of section 138 of title 10, United States Code, is
    amended to read as follows:
        ``(b) The Assistant Secretaries shall perform such duties and
    exercise such powers as the Secretary of Defense may prescribe.''.
        (c) Repeal of Certain OSD Presidential Appointment Positions.--The
    following sections of chapter 4 of such title are repealed:

    [[Page 110 STAT. 402]]

                (1) Section 133a, relating to the Deputy Under Secretary of
            Defense for Acquisition and Technology.
                (2) Section 134a, relating to the Deputy Under Secretary of
            Defense for Policy.
                (3) Section 137, relating to the Director of Defense
            Research and Engineering.
                (4) Section 142, relating to the Assistant to the Secretary
            of Defense for Nuclear and Chemical and Biological Defense
            Programs.

        (d) Director of Military Relocation Assistance Programs.--Section
    1056 of such title is amended by striking out subsection (d).
        (e) Conforming Amendments Relating to Repeal of Various OSD
    Positions.--Chapter 4 of such title is further amended--
                (1) in section 131(b)--
                        (A) by striking out paragraphs (6) and (8); and
                        (B) by redesignating paragraphs (7), (9), (10), and
                    (11), as paragraphs (6), (7), (8), and (9),
                    respectively;
                (2) in section 138(d), by striking out ``the Under
            Secretaries of Defense, and the Director of Defense Research and
            Engineering'' and inserting in lieu thereof ``and the Under
            Secretaries of Defense''; and
                (3) in the table of sections at the beginning of the
            chapter, by striking out the items relating to sections 133a,
            134a, 137, and 142.

        (f) Conforming Amendments Relating to Repeal of Specification of ASD
    Positions.--
                (1) Section 176(a)(3) of title 10, United States Code, is
            amended--
                        (A) by striking out ``Assistant Secretary of Defense
                    for Health Affairs'' and inserting in lieu thereof
                    ``official in the Department of Defense with principal
                    responsibility for health affairs''; and
                        (B) by striking out ``Chief Medical Director of the
                    Department of Veterans Affairs'' and inserting in lieu
                    thereof ``Under Secretary for Health of the Department
                    of Veterans Affairs''.
                (2) Section 1216(d) of such title is amended by striking out
            ``Assistant Secretary of Defense for Health Affairs'' and
            inserting in lieu thereof ``official in the Department of
            Defense with principal responsibility for health affairs''.
                (3) Section 1587(d) of such title is amended by striking out
            ``Assistant Secretary of Defense for Manpower and Logistics''
            and inserting in lieu thereof ``official in the Department of
            Defense with principal responsibility for personnel and
            readiness''.
                (4) The text of section 10201 of such title is amended to
            read as follows:

        ``The official in the Department of Defense with responsibility for
    overall supervision of reserve component affairs of the Department of
    Defense is the official designated by the Secretary of Defense to have
    that responsibility.''.
                (5) Section 1211(b)(2) of the National Defense Authorization
            Act for Fiscal Years 1988 and 1989 (P.L. 100-180; 101 Stat 1155;
            10 U.S.C. 167 note) is amended by striking out ``the Assistant
            Secretary of Defense for Special Operations and Low Intensity
            Conflict'' and inserting in lieu thereof ``the official

    [[Page 110 STAT. 403]]

            designated by the Secretary of Defense to have principal
            responsibility for matters relating to special operations and
            low intensity conflict''.

        (g) Repeal of Minimum Number of Senior Staff for Specified Assistant
    Secretary of Defense.--Section 355 of the National Defense Authorization
    Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1540) is
    repealed.
    SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE
                            SECRETARY OF DEFENSE FOR ATOMIC ENERGY.

        (a) In General.--(1) Section 142 of title 10, United States Code, is
    amended--
                (A) by striking out the section heading and inserting in
            lieu thereof the following:
    ``Sec. 142. Assistant to the Secretary of Defense for Nuclear and
                      Chemical and Biological Defense Programs'';
                (B) in subsection (a), by striking out ``Assistant to the
            Secretary of Defense for Atomic Energy'' and inserting in lieu
            thereof ``Assistant to the Secretary of Defense for Nuclear and
            Chemical and Biological Defense Programs''; and
                (C) by striking out subsection (b) and inserting in lieu
            thereof the following:

        ``(b) The Assistant to the Secretary shall--
                ``(1) advise the Secretary of Defense on nuclear energy,
            nuclear weapons, and chemical and biological defense;
                ``(2) serve as the Staff Director of the Nuclear Weapons
            Council established by section 179 of this title; and
                ``(3) perform such additional duties as the Secretary may
            prescribe.''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 4 of such title is amended to read as follows:

    ``142. Assistant to the Secretary of Defense for Nuclear and Chemical
               and Biological Defense Programs.''.

        (b) Conforming Amendments.--(1) Section 179(c)(2) of title 10,
    United States Code, is amended by striking out ``The Assistant to the
    Secretary of Defense for Atomic Energy'' and inserting in lieu thereof
    ``The Assistant to the Secretary of Defense for Nuclear and Chemical and
    Biological Defense Programs''.
        (2) Section 5316 of title 5, United States Code, is amended by
    striking out ``The Assistant to the Secretary of Defense for Atomic
    Energy, Department of Defense.'' and inserting in lieu thereof the
    following:
                ``Assistant to the Secretary of Defense for Nuclear and
            Chemical and Biological Defense Programs, Department of
            Defense.''.

    SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

        (a) In General.--(1) Chapter 7 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 181. Joint Requirements Oversight Council

        ``(a) Establishment.--The Secretary of Defense shall establish a
    Joint Requirements Oversight Council in the Department of Defense.

    [[Page 110 STAT. 404]]

        ``(b) Mission.--In addition to other matters assigned to it by the
    President or Secretary of Defense, the Joint Requirements Oversight
    Council shall--
                ``(1) assist the Chairman of the Joint Chiefs of Staff in
            identifying and assessing the priority of joint military
            requirements (including existing systems and equipment) to meet
            the national military strategy;
                ``(2) assist the Chairman in considering alternatives to any
            acquisition program that has been identified to meet military
            requirements by evaluating the cost, schedule, and performance
            criteria of the program and of the identified alternatives; and
                ``(3) as part of its mission to assist the Chairman in
            assigning joint priority among existing and future programs
            meeting valid requirements, ensure that the assignment of such
            priorities conforms to and reflects resource levels projected by
            the Secretary of Defense through defense planning guidance.

        ``(c) Composition.--(1) The Joint Requirements Oversight Council is
    composed of--
                ``(A) the Chairman of the Joint Chiefs of Staff, who is the
            chairman of the Council;
                ``(B) an Army officer in the grade of general;
                ``(C) a Navy officer in the grade of admiral;
                ``(D) an Air Force officer in the grade of general; and
                ``(E) a Marine Corps officer in the grade of general.

        ``(2) Members of the Council, other than the Chairman of the Joint
    Chiefs of Staff, shall be selected by the Chairman of the Joint Chiefs
    of Staff, after consultation with the Secretary of Defense, from
    officers in the grade of general or admiral, as the case may be, who are
    recommended for such selection by the Secretary of the military
    department concerned.
        ``(3) The functions of the Chairman of the Joint Chiefs of Staff as
    chairman of the Council may only be delegated to the Vice Chairman of
    the Joint Chiefs of Staff.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``181. Joint Requirements Oversight Council.''.

        (b) <<NOTE: 10 USC 181 note.>> Effective Date.--The amendments made
    by this section shall take effect on January 31, 1997.
    SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION
                            ORGANIZATION AND WORKFORCE.

        (a) Restructuring Report.--Not later than March 1, 1996, the
    Secretary of Defense shall submit to Congress a report on the
    acquisition organization and workforce of the Department of Defense. The
    report shall include--
                (1) the plan described in subsection (b); and
                (2) the assessment of streamlining and restructuring options
            described in subsection (c).

        (b) Plan for Restructuring.--(1) The Secretary shall include in the
    report under subsection (a) a plan on how to restructure the current
    acquisition organization of the Department of Defense in a manner that
    would enable the Secretary to accomplish the following:
                (A) Reduce the number of military and civilian personnel
            assigned to, or employed in, acquisition organizations of the
            Department of Defense (as defined by the Secretary) by 25

    [[Page 110 STAT. 405]]

            percent over a period of five years, beginning on October 1,
            1995.
                (B) Eliminate duplication of functions among existing
            acquisition organizations of the Department of Defense.
                (C) Maximize opportunity for consolidation among acquisition
            organizations of the Department of Defense to reduce management
            overhead.

        (2) In the report, the Secretary shall also identify any statutory
    requirement or congressional directive that inhibits any proposed
    restructuring plan or reduction in the size of the defense acquisition
    organization.
        (3) In designing the plan under paragraph (1), the Secretary shall
    give full consideration to the process efficiencies expected to be
    achieved through the implementation of the Federal Acquisition
    Streamlining Act of 1994 (Public Law 103-355), the Federal Acquisition
    Reform Act of 1995 (division D of this Act), and other ongoing
    initiatives to increase the use of commercial practices and reduce
    contract overhead in the defense procurement system.
        (c) Assessment of Specified Restructuring Options.--The Secretary
    shall include in the report under subsection (a) a detailed assessment
    of each of the following options for streamlining and restructuring the
    existing defense acquisition organization, together with a specific
    recommendation as to whether each such option should be implemented:
                (1) Consolidation of certain functions of the Defense
            Contract Audit Agency and the Defense Contract Management
            Command.
                (2) Contracting for performance of a significant portion of
            the workload of the Defense Contract Audit Agency and other
            Defense Agencies that perform acquisition functions.
                (3) Consolidation or selected elimination of Department of
            Defense acquisition organizations.
                (4) Any other defense acquisition infrastructure
            streamlining or restructuring option the Secretary may
            determine.

        (d) Reduction of Acquisition Workforce.--(1) The Secretary of
    Defense shall accomplish reductions in defense acquisition personnel
    positions during fiscal year 1996 so that the total number of such
    personnel as of October 1, 1996, is less than the total number of such
    personnel as of October 1, 1995, by at least 15,000.
        (2) For purposes of this subsection, the term ``defense acquisition
    personnel'' means military and civilian personnel 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) with the exception of personnel who possess technical
    competence in trade-skill maintenance and repair positions involved in
    performing depot maintenance functions.
    SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR
                            NUCLEAR WEAPONS MANAGEMENT IN EVENT OF
                            ABOLITION OF DEPARTMENT OF ENERGY.

        (a) Report Required.--The Secretary of Defense shall submit to
    Congress a report concerning the nuclear weapons complex. The report
    shall set forth--
                (1) the Secretary's views on the effectiveness of the
            Department of Energy in managing the nuclear weapons complex,
            including the fulfillment of the requirements for nuclear weap

    [[Page 110 STAT. 406]]

            ons established for the Department of Energy in the Nuclear
            Posture Review; and
                (2) the Secretary's recommended plan for the incorporation
            into the Department of Defense of the national security programs
            of the Department of Energy if the Department of Energy should
            be abolished and those programs be transferred to the Department
            of Defense.

        (b) Definition.--For purposes of this section, the term ``Nuclear
    Posture Review'' means the Department of Defense Nuclear Posture Review
    as contained in the report entitled ``Report of the Secretary of Defense
    to the President and the Congress'', dated February 19, 1995, or in
    subsequent such reports.
        (c) Submission Of Report.--The report under subsection (a) shall be
    submitted not later than March 15, 1996.
    SEC. 908.  <<NOTE: 10 USC 111 note.>> REDESIGNATION OF ADVANCED
                            RESEARCH PROJECTS AGENCY.

        (a) Redesignation.--The agency in the Department of Defense known as
    the Advanced Research Projects Agency shall after the date of the
    enactment of this Act be designated as the Defense Advanced Research
    Projects Agency.
        (b) References.--Any reference in any law, regulation, document,
    record, or other paper of the United States or in any provision of this
    Act to the Advanced Research Projects Agency shall be considered to be a
    reference to the Defense Advanced Research Projects Agency.

                        Subtitle B--Financial Management

    SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR FOREIGN
                            CURRENCY FLUCTUATIONS.

        (a) Transfers to Military Personnel Accounts Authorized.--Section
    2779 of title 10, United States Code, is amended by adding at the end
    the following:
        ``(c) Transfers to Military Personnel Accounts.--The Secretary of
    Defense may transfer funds to military personnel appropriations for a
    fiscal year out of funds available to the Department of Defense for that
    fiscal year under the appropriation `Foreign Currency Fluctuations,
    Defense'.''.
        (b) Revision and Codification of Authority for Transfers to Foreign
    Currency Fluctuations Account.--Section 2779 of such title, as amended
    by subsection (a), is further amended by adding at the end the
    following:
        ``(d) Transfers to Foreign Currency Fluctuations Account.--(1) The
    Secretary of Defense may transfer to the appropriation `Foreign Currency
    Fluctuations, Defense' unobligated amounts of funds appropriated for
    operation and maintenance and unobligated amounts of funds appropriated
    for military personnel.
        ``(2) Any transfer from an appropriation under paragraph (1) shall
    be made not later than the end of the second fiscal year following the
    fiscal year for which the appropriation is provided.
        ``(3) Any transfer made pursuant to the authority provided in this
    subsection shall be limited so that the amount in the appropriation
    `Foreign Currency Fluctuations, Defense' does not exceed $970,000,000 at
    the time the transfer is made.''.

    [[Page 110 STAT. 407]]

        (c) Conditions of Availability for Transferred Funds.--Section 2779
    of such title, as amended by subsection (b), is further amended by
    adding at the end the following:

        ``(e) Conditions of Availability for Transferred Funds.--Amounts
    transferred under subsection (c) or (d) shall be merged with and be
    available for the same purposes and for the same period as the
    appropriations to which transferred.''.
        (d) Repeal of Superseded Provisions.--(1) Section 767A of Public Law
    96-527 (94 Stat. 3093) is repealed.
        (2) Section 791 of the Department of Defense Appropriation Act, 1983
    (enacted in section 101(c) of Public Law 97-377; 96 Stat.
    1865) <<NOTE: 10 USC 114 note.>> is repealed.

        (e) Technical Amendments.--Section 2779 of title 10, United States
    Code, is amended--
                (1) in subsection (a), by striking out ``(a)(1)'' and
            inserting in lieu thereof ``(a) Transfers Back to Foreign
            Currency Fluctuations Appropriation.--(1)'';
                (2) in subsection (a)(2), by striking out ``2d fiscal year''
            and inserting in lieu thereof ``second fiscal year''; and
                (3) in subsection (b), by striking out ``(b)(1)'' and
            inserting in lieu thereof ``(b) Funding for Losses in Military
            Construction and Family Housing.--(1)''.

        (f) <<NOTE: 10 USC 2779 note.>> Effective Date.--Subsections (c) and
    (d) of section 2779 of title 10, United States Code, as added by
    subsections (a) and (b), and the repeals made by subsection (d), shall
    apply only with respect to amounts appropriated for a fiscal year after
    fiscal year 1995.

    SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

        (a) Establishment and Use.--(1) Chapter 131 of title 10, United
    States Code, is amended by inserting after section 2215 the following
    new section:

    ``Sec. 2216. Defense Modernization Account

        ``(a) Establishment.--There is established in the Treasury an
    account to be known as the `Defense Modernization Account'.
        ``(b) Transfers to Account.--(1)(A) Upon a determination by the
    Secretary of a military department or the Secretary of Defense with
    respect to Defense-wide appropriations accounts of the availability and
    source of funds described in subparagraph (B), that Secretary may
    transfer to the Defense Modernization Account during any fiscal year any
    amount of funds available to the Secretary described in that
    subparagraph. Such funds may be transferred to that account only after
    the Secretary concerned notifies the congressional defense committees in
    writing of the amount and source of the proposed transfer.
        ``(B) This subsection applies to the following funds available to
    the Secretary concerned:
                ``(i) Unexpired funds in appropriations accounts that are
            available for procurement and that, as a result of economies,
            efficiencies, and other savings achieved in carrying out a
            particular procurement, are excess to the requirements of that
            procurement.
                ``(ii) Unexpired funds that are available during the final
            30 days of a fiscal year for support of installations and
            facilities and that, as a result of economies, efficiencies, and
            other sav

    [[Page 110 STAT. 408]]

            ings, are excess to the requirements for support of
            installations and facilities.

        ``(C) <<NOTE: Regulations.>> Any transfer under subparagraph (A)
    shall be made under regulations prescribed by the Secretary of Defense.

        ``(2) Funds referred to in paragraph (1) may not be transferred to
    the Defense Modernization Account if--
                ``(A) the funds are necessary for programs, projects, and
            activities that, as determined by the Secretary, have a higher
            priority than the purposes for which the funds would be
            available if transferred to that account; or
                ``(B) the balance of funds in the account, after transfer of
            funds to the account, would exceed $1,000,000,000.

        ``(3) Amounts credited to the Defense Modernization Account shall
    remain available for transfer until the end of the third fiscal year
    that follows the fiscal year in which the amounts are credited to the
    account.
        ``(4) The period of availability of funds for expenditure provided
    for in sections 1551 and 1552 of title 31 may not be extended by
    transfer into the Defense Modernization Account.
        ``(c) Scope of Use of Funds.--Funds transferred to the Defense
    Modernization Account from funds appropriated for a military department,
    Defense Agency, or other element of the Department of Defense shall be
    available in accordance with subsections (f) and (g) only for transfer
    to funds available for that military department, Defense Agency, or
    other element.
        ``(d) Authorized Use of Funds.--Funds available from the Defense
    Modernization Account pursuant to subsection (f) or (g) may be used for
    the following purposes:
                ``(1) For increasing, subject to subsection (e), the
            quantity of items and services procured under a procurement
            program in order to achieve a more efficient production or
            delivery rate.
                ``(2) For research, development, test, and evaluation and
            for procurement necessary for modernization of an existing
            system or of a system being procured under an ongoing
            procurement program.

        ``(e) Limitations.--(1) Funds in the Defense Modernization Account
    may not be used to increase the quantity of an item or services procured
    under a particular procurement program to the extent that doing so
    would--
                ``(A) result in procurement of a total quantity of items or
            services in excess of--
                        ``(i) a specific limitation provided by law on the
                    quantity of the items or services that may be procured;
                    or
                        ``(ii) the requirement for the items or services as
                    approved by the Joint Requirements Oversight Council and
                    reported to Congress by the Secretary of Defense; or
                ``(B) result in an obligation or expenditure of funds in
            excess of a specific limitation provided by law on the amount
            that may be obligated or expended, respectively, for that
            procurement program.

        ``(2) Funds in the Defense Modernization Account may not be used for
    a purpose or program for which Congress has not authorized
    appropriations.

        ``(3) Funds may not be transferred from the Defense Modernization
    Account in any year for the purpose of--

    [[Page 110 STAT. 409]]

                ``(A) making an expenditure for which there is no
            corresponding obligation; or
                ``(B) making an expenditure that would satisfy an
            unliquidated or unrecorded obligation arising in a prior fiscal
            year.

        ``(f) Transfer of Funds.--(1) The Secretary of Defense may transfer
    funds in the Defense Modernization Account to appropriations available
    for purposes set forth in subsection (d).
        ``(2) <<NOTE: Notification.>> Funds in the Defense Modernization
    Account may not be transferred under paragraph (1) until 30 days after
    the date on which the Secretary concerned notifies the congressional
    defense committees in writing of the amount and purpose of the proposed
    transfer.

        ``(3) The total amount of transfers from the Defense Modernization
    Account during any fiscal year under this subsection may not exceed
    $500,000,000.
        ``(g) Availability of Funds by Appropriation.--In addition to
    transfers under subsection (f), funds in the Defense Modernization
    Account may be made available for purposes set forth in subsection (d)
    in accordance with the provisions of appropriations Acts, but only to
    the extent authorized in an Act other than an appropriations Act.
        ``(h) Secretary To Act Through Comptroller.--The Secretary of
    Defense shall carry out this section through the Under Secretary of
    Defense (Comptroller), who shall be authorized to implement this section
    through the issuance of any necessary regulations, policies, and
    procedures after consultation with the General Counsel and Inspector
    General of the Department of Defense.
        ``(i) Quarterly Reports.--(1) Not later than 15 days after the end
    of each calendar quarter, the Secretary of Defense shall submit to the
    congressional committees specified in paragraph (2) a report on the
    Defense Modernization Account. Each such report shall set forth the
    following:
                ``(A) The amount and source of each credit to the account
            during that quarter.
                ``(B) The amount and purpose of each transfer from the
            account during that quarter.
                ``(C) The balance in the account at the end of the quarter
            and, of such balance, the amount attributable to transfers to
            the account from each Secretary concerned.

        ``(2) The committees referred to in paragraph (1) are the
    congressional defense committees and the Committee on Governmental
    Affairs of the Senate and the Committee on Government Reform and
    Oversight of the House of Representatives.
        ``(j) Definitions.--In this section:
                ``(1) The term `Secretary concerned' includes the Secretary
            of Defense with respect to Defense-wide appropriations accounts.
                ``(2) The term `unexpired funds' means funds appropriated
            for a definite period that remain available for obligation.
                ``(3) The term `congressional defense committees' means--
                        ``(A) the Committee on Armed Services and the
                    Committee on Appropriations of the Senate; and
                        ``(B) the Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.

    [[Page 110 STAT. 410]]

        (2) The table of sections at the beginning of chapter 131 of such
    title is amended by inserting after the item relating to section 2215
    the following new item:

    ``2216. Defense Modernization Account.''.

        (b) <<NOTE: 10 USC 2216 note.>> Effective Date.--Section 2216 of
    title 10, United States Code (as added by subsection (a)), shall apply
    only to funds appropriated for fiscal years after fiscal year 1995.

        (c) <<NOTE: 10 USC 2216 note.>> Expiration of Authority and
    Account.--(1) The authority under section 2216(b) of title 10, United
    States Code (as added by subsection (a)), to transfer funds into the
    Defense Modernization Account terminates at the close of September 30,
    2003.

        (2) Three years after the termination date specified in paragraph
    (1), the Defense Modernization Account shall be closed and any remaining
    balance in the account shall be canceled and thereafter shall not be
    available for any purpose.
        (d) <<NOTE: Reports. 10 USC 2216 note.>> GAO Reviews.--(1) The
    Comptroller General of the United States shall conduct two reviews of
    the administration of the Defense Modernization Account. In each review,
    the Comptroller General shall assess the operations and benefits of the
    account.

        (2) Not later than March 1, 2000, the Comptroller General shall--
                (A) complete the first review; and
                (B) submit to the specified committees of Congress an
            initial report on the administration and benefits of the Defense
            Modernization Account.

        (3) Not later than March 1, 2003, the Comptroller General shall--
                (A) complete the second review; and
                (B) submit to the specified committees of Congress a final
            report on the administration and benefits of the Defense
            Modernization Account.

        (4) Each such report shall include any recommended legislation
    regarding the account that the Comptroller General considers
    appropriate.
        (5) For purposes of this subsection, the term ``specified committees
    of Congress'' means the congressional committees referred to in section
    2216(i)(2) of title 10, United States Code, as added by subsection (a).
    SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING
                            OFFICIALS.

        (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United
    States Code, is amended by striking out paragraph (2) and inserting in
    lieu thereof the following:
                ``(2) The Department of Defense.''.

        (2) Section 2773 of title 10, United States Code, is amended--
                (A) in subsection (a)--
                        (i) in paragraph (1), by striking out ``With the
                    approval of a Secretary of a military department when
                    the Secretary considers it necessary, a disbursing
                    official of the military department'' and inserting in
                    lieu thereof ``Subject to paragraph (3), a disbursing
                    official of the Department of Defense''; and
                        (ii) by adding at the end the following new
                    paragraph:

        ``(3) A disbursing official may make a designation under paragraph
    (1) only with the approval of the Secretary of Defense or,

    [[Page 110 STAT. 411]]

    in the case of a disbursing official of a military department, the
    Secretary of that military department.''; and
                (B) in subsection (b)(1), by striking out ``any military
            department'' and inserting in lieu thereof ``the Department of
            Defense''.

        (b) Designation of Members of the Armed Forces To Have Authority To
    Certify Vouchers.--Section 3325(b) of title 31, United States Code, is
    amended to read as follows:
        ``(b) In addition to officers and employees referred to in
    subsection (a)(1)(B) of this section as having authorization to certify
    vouchers, members of the armed forces under the jurisdiction of the
    Secretary of Defense may certify vouchers when authorized, in writing,
    by the Secretary to do so.''.
        (c) Conforming Amendments.--(1) Section 1012 of title 37, United
    States Code, is amended by striking out ``Secretary concerned'' both
    places it appears and inserting in lieu thereof ``Secretary of
    Defense''.
        (2) Section 1007(a) of title 37, United States Code, is amended by
    striking out ``Secretary concerned'' and inserting in lieu thereof
    ``Secretary of Defense, or upon the denial of relief of an officer
    pursuant to section 3527 of title 31''.
        (3)(A) Section 7863 of title 10, United States Code, is amended--
                (i) in the first sentence, by striking out ``disbursements
            of public moneys or'' and ``the money was paid or''; and
                (ii) in the second sentence, by striking out ``disbursement
            or''.

        (B)(i) The heading of such section is amended to read as follows:

    ``Sec. 7863. Disposal of public stores by order of commanding officer''.

        (ii) The item relating to such section in the table of sections at
    the beginning of chapter 661 of such title is amended to read as
    follows:

    ``7863. Disposal of public stores by order of commanding officer.''.

        (4) Section 3527(b)(1) of title 31, United States Code, is amended--
                (A) by striking out ``a disbursing official of the armed
            forces'' and inserting in lieu thereof ``an official of the
            armed forces referred to in subsection (a)'';
                (B) by striking out ``records,'' and inserting in lieu
            thereof ``records, or a payment described in section
            3528(a)(4)(A) of this title,'';
                (C) by redesignating subparagraphs (A), (B), and (C) as
            clauses (i), (ii), and (iii), and realigning such clauses four
            ems from the left margin;
                (D) by inserting before clause (i), as so redesignated, the
            following:
                ``(A) in the case of a physical loss or deficiency--'';
                (E) in clause (iii), as so redesignated, by striking out the
            period at the end and inserting in lieu thereof ``; or''; and
                (F) by adding at the end the following:
                ``(B) in the case of a payment described in section
            3528(a)(4)(A) of this title, the Secretary of Defense or the
            Secretary of the appropriate military department, after taking a
            diligent collection action, finds that the criteria of section
            3528(b)(1) of this title are satisfied.''.

    [[Page 110 STAT. 412]]

        (5) Section 3528 of title 31, United States Code, is amended by
    striking out subsection (d).

    SEC. 914. FISHER HOUSE TRUST FUNDS.

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

    ``Sec. 2221. Fisher House trust funds

        ``(a) Establishment.--The following trust funds are established on
    the books of the Treasury:
                ``(1) The Fisher House Trust Fund, Department of the Army.
                ``(2) The Fisher House Trust Fund, Department of the Air
            Force.

        ``(b) Investment.--Funds in the trust funds may be invested in
    securities of the United States. Earnings and gains realized from the
    investment of funds in a trust fund shall be credited to the trust fund.
        ``(c) Use of Funds.--(1) Amounts in the Fisher House Trust Fund,
    Department of the Army, that are attributable to earnings or gains
    realized from investments shall be available for the operation and
    maintenance of Fisher houses that are located in proximity to medical
    treatment facilities of the Army.
        ``(2) Amounts in the Fisher House Trust Fund, Department of the Air
    Force, that are attributable to earnings or gains realized from
    investments shall be available for the operation and maintenance of
    Fisher houses that are located in proximity to medical treatment
    facilities of the Air Force.
        ``(3) The use of funds under this section is subject to section
    1321(b)(2) of title 31.
        ``(d) Fisher House Defined.--In this section, the term `Fisher
    house' means a housing facility that--
                ``(1) is located in proximity to a medical treatment
            facility of the Army or the Air Force; and
                ``(2) is available for residential use on a temporary basis
            by patients at such facilities, members of the family of such
            patients, and others providing the equivalent of familial
            support for such patients.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2221. Fisher House trust funds.''.

        (b) <<NOTE: 10 USC 2221 note.>> Corpus of Trust Funds.--(1) The
    Secretary of the Treasury shall--
                (A) close the accounts established with the funds that were
            required by section 8019 of Public Law 102-172 (105 Stat. 1175)
            and section 9023 of Public Law 102-396 (106 Stat. 1905) to be
            transferred to an appropriated trust fund; and
                (B) transfer the amounts in such accounts to the Fisher
            House Trust Fund, Department of the Army, established by
            subsection (a)(1) of section 2221 of title 10, United States
            Code, as added by subsection (a).

        (2) The Secretary of the Air Force shall transfer to the Fisher
    House Trust Fund, Department of the Air Force, established by subsection
    (a)(2) of section 2221 of title 10, United States Code (as added by
    section (a)), all amounts in the accounts for Air Force installations
    and other facilities that, as of the date of the

    [[Page 110 STAT. 413]]

    enactment of this Act, are available for operation and maintenance of
    Fisher houses (as defined in subsection (d) of such section 2221).
        (c) Conforming Amendments.--Section 1321 of title 31, United States
    Code, is amended--
                (1) by adding at the end of subsection (a) the following:
                ``(92) Fisher House Trust Fund, Department of the Army.
                ``(93) Fisher House Trust Fund, Department of the Air
            Force.''; and
                (2) in subsection (b)--
                        (A) by inserting ``(1)'' after ``(b)'';
                        (B) in the second sentence, by striking out
                    ``Amounts accruing to these funds (except to the trust
                    fund `Armed Forces Retirement Home Trust Fund')'' and
                    inserting in lieu thereof ``Except as provided in
                    paragraph (2), amounts accruing to these funds'';
                        (C) by striking out the third sentence; and
                        (D) by adding at the end the following:

        ``(2) Expenditures from the following trust funds may be made only
    under annual appropriations and only if the appropriations are
    specifically authorized by law:
                ``(A) Armed Forces Retirement Home Trust Fund.
                ``(B) Fisher House Trust Fund, Department of the Army.
                ``(C) Fisher House Trust Fund, Department of the Air
            Force.''.

        (d) Repeal of Superseded Provisions.--The following provisions of
    law are repealed:
                (1) Section 8019 of Public Law 102-172 (105 Stat. 1175).
                (2) Section 9023 of Public Law 102-396 (106 Stat. 1905).
                (3) Section 8019 of Public Law 103-139 (107 Stat. 1441).
                (4) Section 8017 of Public Law 103-335 (108 Stat. 2620; 10
            U.S.C. 1074 note).
    SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY AND
                            EXTRAORDINARY EXPENSES.

        Section 127 of title 10, United States Code, is amended--
                (1) by redesignating subsection (c) as subsection (d); and
                (2) by inserting after subsection (b) the following new
            subsection (c):

        ``(c)(1) <<NOTE: Notification.>>  Funds may not be obligated or
    expended in an amount in excess of $500,000 under the authority of
    subsection (a) or (b) until the Secretary of Defense has notified 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 of the intent to obligate
    or expend the funds, and--
                ``(A) in the case of an obligation or expenditure in excess
            of $1,000,000, 15 days have elapsed since the date of the
            notification; or
                ``(B) in the case of an obligation or expenditure in excess
            of $500,000, but not in excess of $1,000,000, 5 days have
            elapsed since the date of the notification.

        ``(2) Subparagraph (A) or (B) of paragraph (1) shall not apply to an
    obligation or expenditure of funds otherwise covered by such
    subparagraph if the Secretary of Defense determines that the national
    security objectives of the United States will be compromised by the
    application of the subparagraph to the obligation or
    expenditure. <<NOTE: Notification.>> If the Secretary makes a
    determination with respect

    [[Page 110 STAT. 414]]

    to an obligation or expenditure under the preceding sentence, the
    Secretary shall immediately notify the committees referred to in
    paragraph (1) that such obligation or expenditure is necessary and
    provide any relevant information (in classified form, if necessary)
    jointly to the chairman and ranking minority member (or their designees)
    of such committees.

        ``(3) A notification under paragraph (1) and information referred to
    in paragraph (2) shall include the amount to be obligated or expended,
    as the case may be, and the purpose of the obligation or expenditure.''.

                           TITLE X--GENERAL PROVISIONS

                          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
    1996 between any such authorizations for that fiscal year (or any
    subdivisions thereof). Amounts of authorizations so transferred shall be
    merged with and be available for the same purposes as the authorization
    to which transferred.
        (2) The total amount of authorizations that the Secretary of Defense
    may transfer under the authority of this section may not exceed
    $2,000,000,000.
        (b) Limitations.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred; and
                (2) may not be used to provide authority for an item that
            has been denied authorization by Congress.

        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount is
    transferred by an amount equal to the amount transferred.
        (d) Notice to Congress.--The Secretary shall promptly notify
    Congress of each transfer made under subsection (a).

    SEC. 1002. <<NOTE: 10 USC 114 note.>> INCORPORATION OF CLASSIFIED ANNEX.

        (a) Status of Classified Annex.--The Classified Annex prepared by
    the committee on conference to accompany the bill H.R. 1530 of the One
    Hundred Fourth Congress and transmitted to the President is hereby
    incorporated into this Act.
        (b) Construction With Other Provisions of Act.--The amounts
    specified in the Classified Annex are not in addition to amounts
    authorized to be appropriated by other provisions of this Act.
        (c) Limitation on Use of Funds.--Funds appropriated pursuant to an
    authorization contained in this Act that are made available for a
    program, project, or activity referred to in the Classified Annex may
    only be expended for such program, project, or activity in accordance
    with such terms, conditions, limitations, restrictions,

    [[Page 110 STAT. 415]]

    and requirements as are set out for that program, project, or activity
    in the Classified Annex.
        (d) <<NOTE: President.>> 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. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED OPERATIONS.

        (a) Revision of Funding Mechanism.--(1) Section 127a of title 10,
    United States Code, is amended to read as follows:
    ``Sec. 127a. Operations for which funds are not provided in
                        advance: funding mechanisms

        ``(a) In General.--(1) The Secretary of Defense shall use the
    procedures prescribed by this section with respect to any operation
    specified in paragraph (2) that involves--
                ``(A) the deployment (other than for a training exercise) of
            elements of the Armed Forces for a purpose other than a purpose
            for which funds have been specifically provided in advance; or
                ``(B) the provision of humanitarian assistance, disaster
            relief, or support for law enforcement (including immigration
            control) for which funds have not been specifically provided in
            advance.

        ``(2) This section applies to--
                ``(A) any operation the incremental cost of which is
            expected to exceed $50,000,000; and
                ``(B) any other operation the expected incremental cost of
            which, when added to the expected incremental costs of other
            operations that are currently ongoing, is expected to result in
            a cumulative incremental cost of ongoing operations of the
            Department of Defense in excess of $100,000,000.

    Any operation the incremental cost of which is expected not to exceed
    $10,000,000 shall be disregarded for the purposes of subparagraph (B).
        ``(3) <<NOTE: Notification.>> Whenever an operation to which this
    section applies is commenced or subsequently becomes covered by this
    section, the Secretary of Defense shall designate and identify that
    operation for the purposes of this section and shall promptly notify
    Congress of that designation (and of the identification of the
    operation).

        ``(4) This section does not provide authority for the President or
    the Secretary of Defense to carry out any operation, but establishes
    mechanisms for the Department of Defense by which funds are provided for
    operations that the armed forces are required to carry out under some
    other authority.
        ``(b) Waiver of Requirement To Reimburse Support Units.--(1) The
    Secretary of Defense shall direct that, when a unit of the Armed Forces
    participating in an operation described in subsection (a) receives
    services from an element of the Department of Defense that operates
    through the Defense Business Operations Fund (or a successor fund), such
    unit of the Armed Forces may not be required to reimburse that element
    for the incremental costs incurred by that element in providing such
    services, notwithstanding any other provision of law or any Government
    accounting practice.

    [[Page 110 STAT. 416]]

        ``(2) <<NOTE: Records.>> The amounts which but for paragraph (1)
    would be required to be reimbursed to an element of the Department of
    Defense (or a fund) shall be recorded as an expense attributable to the
    operation and shall be accounted for separately.

        ``(c) Transfer Authority.--(1) Whenever there is an operation of the
    Department of Defense described in subsection (a), the Secretary of
    Defense may transfer amounts described
    in paragraph (3) to accounts from which incremental expenses for that
    operation were incurred in order to reimburse those accounts for those
    incremental expenses. Amounts so transferred shall be merged with and be
    available for the same purposes as the accounts to which transferred.

        ``(2) The total amount that the Secretary of Defense may transfer
    under the authority of this section in any fiscal year is $200,000,000.
        ``(3) Transfers under this subsection may only be made from amounts
    appropriated to the Department of Defense for any fiscal year that
    remain available for obligation, other than amounts within any operation
    and maintenance appropriation that are available for (A) an account
    (known as a budget activity 1 account) that is specified as being for
    operating forces, or (B) an account (known as a budget activity 2
    account) that is specified as being for mobilization.
        ``(4) The authority provided by this subsection is in addition to
    any other authority provided by law authorizing the transfer of amounts
    available to the Department of Defense. However, the Secretary may not
    use any such authority under another provision of law for a purpose
    described in paragraph (1) if there is authority available under this
    subsection for that purpose.
        ``(5) The authority provided by this subsection to transfer amounts
    may not be used to provide authority for an activity that has been
    denied authorization by Congress.
        ``(6) A transfer made from one account to another under the
    authority of this subsection shall be deemed to increase the amount
    authorized for the account to which the amount is transferred by an
    amount equal to the amount transferred.
        ``(d) Report Upon Designation of an Operation.--Within 45 days after
    the Secretary of Defense identifies an operation pursuant to subsection
    (a)(2), the Secretary of Defense shall submit to Congress a report that
    sets forth the following:
                ``(1) The manner by which the Secretary proposes to obtain
            funds for the cost to the United States of the operation,
            including a specific discussion of how the Secretary proposes to
            restore balances in--
                        ``(A) the Defense Business Operations Fund (or a
                    successor fund), or
                        ``(B) the accounts from which the Secretary
                    transfers funds under the authority of subsection (c),
                    to the levels that would have been anticipated but for
                    the provisions of subsection (c).
                ``(2) If the operation is described in subsection (a)(1)(B),
            a justification why the budgetary resources of another
            department or agency of the Federal Government, instead of
            resources of the Department of Defense, are not being used for
            carrying out the operation.
                ``(3) The objectives of the operation.

    [[Page 110 STAT. 417]]

                ``(4) The estimated duration of the operation and of any
            deployment of armed forces personnel in such operation.
                ``(5) The estimated incremental cost of the operation to the
            United States.
                ``(6) The exit criteria for the operation and for the
            withdrawal of the elements of the armed forces involved in the
            operation.

        ``(e) Limitations.--(1) The Secretary may not restore balances in
    the Defense Business Operations Fund through increases in rates charged
    by that fund in order to compensate for costs incurred and not
    reimbursed due to subsection (b).
        ``(2) The Secretary may not restore balances in the Defense Business
    Operations Fund or any other fund or account through the use of
    unobligated amounts in an operation and maintenance appropriation that
    are available within that appropriation for (A) an account (known as a
    budget activity 1 account) that is specified as being for operating
    forces, or (B) an account (known as a budget activity 2 account) that is
    specified as being for mobilization.
        ``(f) Submission of Requests for Supplemental Appropriations.--It is
    the sense of Congress that whenever there is an operation described in
    subsection (a), the President should, not later than 90 days after the
    date on which notification is provided pursuant to subsection (a)(3),
    submit to Congress a request for the enactment of supplemental
    appropriations for the then-current fiscal year in order to provide
    funds to replenish the Defense Business Operations Fund or any other
    fund or account of the Department of Defense from which funds for the
    incremental expenses of that operation were derived under this section
    and should, as necessary, submit subsequent requests for the enactment
    of such appropriations.
        ``(g) Incremental Costs.--For purposes of this section, incremental
    costs of the Department of Defense with respect to an operation are the
    costs of the Department that are directly attributable to the operation
    (and would not have been incurred but for the operation). Incremental
    costs do not include the cost of property or services acquired by the
    Department that are paid for by a source outside the Department or out
    of funds contributed by such a source.
        ``(h) Relationship to War Powers Resolution.--This section may not
    be construed as altering or superseding the War Powers Resolution. This
    section does not provide authority to conduct any military operation.
        ``(i) GAO Compliance Reviews.--The Comptroller General of the United
    States shall from time to time, and when requested by a committee of
    Congress, conduct a review of the defense funding structure under this
    section to determine whether the Department of Defense is complying with
    the requirements and limitations of this section.''.
        (2) The item relating to section 127a in the table of sections at
    the beginning of chapter 3 of such title is amended to read as follows:

    ``127a. Operations for which funds are not provided in advance: funding
               mechanisms.''.

        (b) <<NOTE: 10 USC 127a note.>> Effective Date.--The amendment to
    section 127a of title 10, United States Code, made by subsection (a)
    shall take effect on the date of the enactment of this Act and shall
    apply to any

    [[Page 110 STAT. 418]]

    operation of the Department of Defense that is in effect on or after
    that date, whether such operation is begun before, on, or after such
    date of enactment. In the case of an operation begun before such date,
    any reference in such section to the commencement of such operation
    shall be treated as referring to the effective date under the preceding
    sentence.

    SEC. 1004. OPERATION PROVIDE COMFORT.

        (a) Authorization of Amounts Available.--Within the total amounts
    authorized to be appropriated in titles III and IV, there is hereby
    authorized to be appropriated for fiscal year 1996 for costs associated
    with Operation Provide Comfort--
                (1) $136,300,000 for operation and maintenance costs; and
                (2) $7,000,000 for incremental military personnel costs.

        (b) Report.--Not more than $70,000,000 of the amount appropriated
    under subsection (a) may be obligated until the Secretary of Defense
    submits to the congressional defense committees a report on Operation
    Provide Comfort which includes the following:
                (1) A detailed presentation of the projected costs to be
            incurred by the Department of Defense for Operation Provide
            Comfort during fiscal year 1996, together with a discussion of
            missions and functions expected to be performed by the
            Department as part of that operation during that fiscal year.
                (2) A detailed presentation of the projected costs to be
            incurred by other departments and agencies of the Federal
            Government participating in or providing support to Operation
            Provide Comfort during fiscal year 1996.
                (3) A discussion of available options to reduce the
            involvement of the Department of Defense in those aspects of
            Operation Provide Comfort that are not directly related to the
            military mission of the Department of Defense.
                (4) A plan establishing an exit strategy for United States
            involvement in, and support for, Operation Provide Comfort.

        (c) Operation Provide Comfort.--For purposes of this section, the
    term ``Operation Provide Comfort'' means the operation of the Department
    of Defense that as of October 30, 1995, is designated as Operation
    Provide Comfort.

    SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

        (a) Authorization of Amounts Available.--Within the total amounts
    authorized to be appropriated in titles III and IV, there is hereby
    authorized to be appropriated for fiscal year 1996 for costs associated
    with Operation Enhanced Southern Watch--
                (1) $433,400,000 for operation and maintenance costs; and
                (2) $70,400,000 for incremental military personnel costs.

        (b) Report.--(1) Of the amounts specified in subsection (a), not
    more than $250,000,000 may be obligated until the Secretary of Defense
    submits to the congressional defense committees a report designating
    Operation Enhanced Southern Watch, or significant elements thereof, as a
    forward presence operation for which funding should be budgeted as part
    of the annual defense budget process in the same manner as other
    activities of the Armed Forces involving forward presence or forward
    deployed forces.
        (2) The report shall set forth the following:
                (A) The expected duration and annual costs of the various
            elements of Operation Enhanced Southern Watch.
                (B) Those elements of Operation Enhanced Southern Watch that
            are semi-permanent in nature and should be budgeted

    [[Page 110 STAT. 419]]

            in the future as part of the annual defense budget process in
            the same manner as other activities of the Armed Forces
            involving forward presence or forward deployed forces.
                (C) The political and military objectives associated with
            Operation Enhanced Southern Watch.
                (D) The contributions (both in-kind and actual) by other
            nations to the costs of conducting Operation Enhanced Southern
            Watch.

        (c) Operation Enhanced Southern Watch.--For purposes of this
    section, the term ``Operation Enhanced Southern Watch'' means the
    operation of the Department of Defense that as of October 30, 1995, is
    designated as Operation Enhanced Southern Watch.
    SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL
                              YEAR 1995 DEFENSE APPROPRIATIONS.

        (a) Authority.--The amounts described in subsection (b) may be
    obligated and expended for programs, projects, and activities of the
    Department of Defense in accordance with fiscal year 1995 defense
    appropriations.
        (b) Covered Amounts.--The amounts referred to in subsection (a) are
    the amounts provided for programs, projects, and activities of the
    Department of Defense in fiscal year 1995 defense appropriations that
    are in excess of the amounts provided for such programs, projects, and
    activities in fiscal year 1995 defense authorizations.
        (c) Definitions.--For the purposes of this section:
                (1) Fiscal year 1995 defense appropriations.--The term
            ``fiscal year 1995 defense appropriations'' means amounts
            appropriated or otherwise made available to the Department of
            Defense for fiscal year 1995 in the Department of Defense
            Appropriations Act, 1995 (Public Law 103-335).
                (2) Fiscal year 1995 defense authorizations.--The term
            ``fiscal year 1995 defense authorizations'' means amounts
            authorized to be appropriated for the Department of Defense for
            fiscal year 1995 in the National Defense Authorization Act for
            Fiscal Year 1995 (Public Law 103-337).
    SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL
                              APPROPRIATIONS FOR FISCAL YEAR 1995.

        (a) Adjustment to Previous Authorizations.--Amounts authorized to be
    appropriated to the Department of Defense for fiscal year 1995 in the
    National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
    337) 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 title I of the Emergency Supplemental
    Appropriations and Rescissions for the Department of Defense to Preserve
    and Enhance Military Readiness Act of 1995 (Public Law 104-6; 109 Stat.
    73).
        (b) New Authorization.--The appropriation provided in section 104 of
    such Act (109 Stat. 79) is hereby authorized.
    SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM
                              REVISED ECONOMIC ASSUMPTIONS.

        (a) Reduction.--The total amount authorized to be appropriated in
    titles I, II, and III of this Act is hereby reduced by $832,000,000 to
    reflect savings from revised economic assumptions.

    [[Page 110 STAT. 420]]

    Such reduction shall be made from accounts in those titles as follows:
                Operation and Maintenance, Army, $54,000,000.
                Operation and Maintenance, Navy, $80,000,000.
                Operation and Maintenance, Marine Corps, $9,000,000.
                Operation and Maintenance, Air Force, $51,000,000.
                Operation and Maintenance, Defense-Wide, $36,000,000.
                Operation and Maintenance, Army Reserve, $4,000,000.
                Operation and Maintenance, Navy Reserve, $4,000,000.
                Operation and Maintenance, Marine Corps Reserve, $1,000,000.
                Operation and Maintenance, Air Force Reserve, $3,000,000.
                Operation and Maintenance, Army National Guard, $7,000,000.
                Operation and Maintenance, Air National Guard, $7,000,000.
                Drug Interdiction and Counter-Drug Activities, Defense,
            $5,000,000.
                Environmental Restoration, Defense, $11,000,000.
                Overseas Humanitarian, Disaster, and Civic Aid, $1,000,000.
                Former Soviet Union Threat Reduction, $2,000,000.
                Defense Health Program, $51,000,000.
                Aircraft Procurement, Army, $9,000,000.
                Missile Procurement, Army, $5,000,000.
                Procurement of Weapons and Tracked Combat Vehicles, Army,
            $10,000,000.
                Procurement of Ammunition, Army, $6,000,000.
                Other Procurement, Army, $17,000,000.
                Aircraft Procurement, Navy, $29,000,000.
                Weapons Procurement, Navy, $13,000,000.
                Shipbuilding and Conversion, Navy, $42,000,000.
                Other Procurement, Navy, $18,000,000.
                Procurement, Marine Corps, $4,000,000.
                Aircraft Procurement, Air Force, $50,000,000.
                Missile Procurement, Air Force, $29,000,000.
                Other Procurement, Air Force, $45,000,000.
                Procurement, Defense-Wide, $16,000,000.
                Chemical Agents and Munitions Destruction, Defense,
            $5,000,000.
                Research, Development, Test and Evaluation, Army,
            $20,000,000.
                Research, Development, Test and Evaluation, Navy,
            $50,000,000.
                Research, Development, Test and Evaluation, Air Force,
            $79,000,000.
                Research, Development, Test and Evaluation, Defense-Wide,
            $57,000,000.
                Research, Development, Test and Evaluation, Defense,
            $2,000,000.

        (b) Reductions To Be Applied Proportionally.--Reductions under this
    section shall be applied proportionally to each budget activity,
    activity group, and subactivity group and to each program, project, and
    activity within each account.

    [[Page 110 STAT. 421]]

                     Subtitle B--Naval Vessels and Shipyards

    SEC. 1011. IOWA CLASS BATTLESHIPS.

        (a) Return to Naval Vessel Register.--The Secretary of the Navy
    shall list on the Naval Vessel Register, and maintain on such register,
    at least two of the Iowa-class battleships that were stricken from the
    register in February 1995.
        (b) Support.--The Secretary shall retain the existing logistical
    support necessary for support of at least two operational Iowa class
    battleships in active service, including technical manuals, repair and
    replacement parts, and ordnance.
        (c) Selection of Ships.--The Secretary shall select for listing on
    the Naval Vessel Register under subsection (a) Iowa class battleships
    that are in good material condition and can provide adequate fire
    support for an amphibious assault.
        (d) Replacement Fire-Support Capability.--
    (1) <<NOTE: Certification. Termination date.>> If the Secretary of the
    Navy makes a certification described in paragraph (2), the requirements
    of subsections (a) and (b) shall terminate, effective 60 days after the
    date of the submission of such
    certification.

        (2) A certification referred to in paragraph (1) is a certification
    submitted by the Secretary of the Navy in writing to the Committee on
    Armed Services of the Senate and the Committee on National Security of
    the House of Representatives that the Navy has within the fleet an
    operational surface fire-support capability that equals or exceeds the
    fire-support capability that the Iowa class battleships listed on the
    Naval Vessel Register pursuant to subsection (a) would, if in active
    service, be able
    to provide for Marine Corps amphibious assaults and operations ashore.
    SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
                            COUNTRIES.

        (a) Transfers by Grant.--The Secretary of the Navy is authorized to
    transfer on a grant basis under section 516 of the Foreign Assistance
    Act of 1961 (22 U.S.C. 2321j) frigates of the Oliver Hazard Perry class
    to other countries as follows:
                (1) To the Government of Bahrain, the guided missile frigate
            Jack Williams (FFG 24).
                (2) To the Government of Egypt, the frigate Copeland (FFG
            25).
                (3) To the Government of Turkey, the frigates Clifton
            Sprague (FFG 16) and Antrim (FFG 20).

        (b) Transfers by Lease or Sale.--The Secretary of the Navy is
    authorized to transfer on a lease basis under section 61 of the Arms
    Export Control Act (22 U.S.C. 2796) or on a sale basis under section 21
    of the Arms Export Control Act (22 U.S.C. 2761) frigates of the Oliver
    Hazard Perry class to other countries as follows:
                (1) To the Government of Egypt, the frigate Duncan (FFG 10).
                (2) To the Government of Oman, the guided missile frigate
            Mahlon S. Tisdale (FFG 27).
                (3) To the Government of Turkey, the frigate Flatley (FFG
            21).
                (4) To the Government of the United Arab Emirates, the
            guided missile frigate Gallery (FFG 26).

    [[Page 110 STAT. 422]]

        (c) Financing for Transfers by Lease.--Section 23 of the Arms Export
    Control Act (22 U.S.C. 2763) may be used to provide financing for any
    transfer by lease under subsection (b) in the same manner as if such
    transfer were a procurement by the recipient nation of a defense
    article.
        (d) Costs of Transfers.--Any expense incurred by the United States
    in connection with a transfer authorized by subsection (a) or (b) shall
    be charged to the recipient.
        (e) Expiration of Authority.--The authority to transfer a vessel
    under subsection (a) and under subsection (b) shall expire at the end of
    the two-year period beginning on the date of the enactment of this Act,
    except that a lease entered into during that period under any provision
    of subsection (b) may be renewed.
        (f) Repair and Refurbishment in United States Shipyards.--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.
        (g) Prohibition on Certain Transfers of Vessels on Grant Basis.--(1)
    Section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) is
    amended by adding at the end the following new subsection:
        ``(g) Prohibition on Certain Transfers of Vessels on Grant Basis.--
    (1) The President may not transfer on a grant basis under this section a
    vessel that is in excess of 3,000 tons or that is less than 20 years of
    age.
        ``(2) If the President determines that it is in the national
    security interests of the United States to transfer a particular vessel
    on a grant basis under this section, the President may request that
    Congress enact legislation exempting the transfer from the prohibition
    in paragraph (1).''.
        (2) <<NOTE: Applicability. 22 USC 2321j note.>> The amendment made
    by paragraph (1) shall apply with respect to the transfer of a vessel on
    or after the date of the enactment of this Act (other than a vessel the
    transfer of which is authorized by subsection (a) or by law before the
    date of the enactment of this Act).

    SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

        (a) Findings.--Congress makes the following findings:
                (1) A requirement for the Department of the Navy to acquire
            19 large, medium-speed, roll-on/roll-off (LMSR) vessels was
            established by the Secretary of Defense in the Mobility
            Requirements Study conducted after the Persian Gulf War pursuant
            to section 909 of the National Defense Authorization Act for
            Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1623) and was
            revalidated by the Secretary of Defense in the report entitled
            ``Mobility Requirements Study Bottom-Up Review Update'',
            submitted to Congress in April 1995.
                (2) The Strategic Sealift Program is a vital element of the
            national military strategy calling for the Nation to be able to
            fight and win two nearly simultaneous major regional
            contingencies.
                (3) The Secretary of the Navy has entered into contracts
            with shipyards covering acquisition of a total of 17 such LMSR
            vessels, of which five are vessel conversions and 12 are new

    [[Page 110 STAT. 423]]

            construction vessels. Under those contracts, the Secretary has
            placed orders for the acquisition of 11 vessels and has options
            for the acquisition of six more, all of which would be new
            construction vessels. The options allow the Secretary to place
            orders for one vessel to be constructed at each of two shipyards
            for award before December 31, 1995, December 31, 1996, and
            December 31, 1997, respectively.
                (4) Acquisition of an additional two such LMSR vessels, for
            a total of 19 vessels (the requirement described in paragraph
            (1)) would contribute to preservation of the industrial base of
            United States shipyards capable of building auxiliary and
            sealift vessels.

        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of the Navy should plan for, and budget to provide for, the
    acquisition as soon as possible of a total of 19 large, medium-speed,
    roll-on/roll-off (LMSR) vessels (the number determined to be required in
    the Mobility Requirements Study referred to in subsection (a)(1)),
    rather than only 17 such vessels (the number of vessels under contract
    as of May 1995).
        (c) Additional New Construction Contract Option.--The Secretary of
    the Navy should negotiate with each of the two shipyards holding new
    construction contracts referred to in subsection (a)(3) (Department of
    the Navy contracts numbered N00024-93-C-2203 and N00024-93-C-2205) for
    an option under each such contract for construction of one additional
    such LMSR vessel, with such option to be available to the Secretary for
    exercise during 1995, 1996, or 1997, subject to the availability of
    funds authorized and appropriated for such purpose. Nothing in this
    subsection shall be construed to preclude the Secretary of the Navy from
    competing the award of the two options between the two shipyards holding
    new construction contracts referred to in subsection (a)(3).
        (d) Report.--The Secretary of the Navy shall submit to the
    congressional defense committees, by March 31, 1996, a report stating
    the intentions of the Secretary regarding the acquisition of options for
    the construction of two additional LMSR vessels as described in
    subsection (c).

    SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

        (a) Availability of National Defense Sealift Fund.--Section 2218 of
    title 10, United States Code, is amended--
                (1) in subsection (c)(1)--
                        (A) by striking out ``only for--'' in the matter
                    preceding subparagraph (A) and inserting in lieu thereof
                    ``only for the following purposes:'';
                        (B) by capitalizing the first letter of the first
                    word of subparagraphs (A), (B), (C), and (D);
                        (C) by striking out the semicolon at the end of
                    subparagraphs (A) and (B) and inserting in lieu thereof
                    a period;
                        (D) by striking out ``; and'' at the end of
                    subparagraph (C) and inserting in lieu thereof a period;
                    and
                        (E) by adding at the end the following new
                    subparagraph:
                ``(E) Expenses for maintaining the National Defense Reserve
            Fleet under section 11 of the Merchant Ship Sales Act of 1946
            (50 U.S.C. App. 1744), and for the costs of acquisition of
            vessels for, and alteration and conversion of vessels

    [[Page 110 STAT. 424]]

            in (or to be placed in), the fleet, but only for vessels built
            in United States shipyards.''; and
                (2) in subsection (i), by inserting ``(other than subsection
            (c)(1)(E))'' after ``Nothing in this section''.

        (b) Clarification of Exemption of NDRF Vessels From Retrofit
    Requirement.--Section 11 of the Merchant Ship Sales Act of 1946 (50
    U.S.C. App. 1744) is amended by adding at the end the following new
    subsection:
        ``(e) Vessels in the National Defense Reserve Fleet are exempt from
    the provisions of section 3703a of title 46, United States Code.''.
        (c) Authority To Use National Defense Sealift Fund To Convert Two
    Vessels.--Of the amount authorized to be appropriated in section 302 for
    fiscal year 1996 for the National Defense Sealift Fund under section
    2218 of title 10, United States Code, not more than $20,000,000 shall be
    available for conversion work on the following two roll-on/roll-off
    vessels, which were acquired by the Maritime Administration during
    fiscal year 1995:
                (1) M/V Cape Knox (ON-1036323).
                (2) M/V Cape Kennedy (ON-1036324).

    SEC. 1015. NAVAL SALVAGE FACILITIES.

        Chapter 637 of title 10, United States Code, is amended to read as
    follows:

                        ``CHAPTER 637--SALVAGE FACILITIES

    ``Sec.
    ``7361. Authority to provide for necessary salvage facilities.
    ``7362. Acquisition and transfer of vessels and equipment.
    ``7363. Settlement of claims.
    ``7364. Disposition of receipts.

    ``Sec. 7361. <<NOTE: Contracts.>> Authority to provide for necessary
                            salvage facilities

        ``(a) Authority.--The Secretary of the Navy may provide, by contract
    or otherwise, necessary salvage facilities for public and private
    vessels.
        ``(b) Coordination With Secretary of Transportation.--The Secretary
    shall submit to the Secretary of Transportation for comment each
    proposed contract for salvage facilities that affects the interests of
    the Department of Transportation.

        ``(c) Limitation.--The Secretary of the Navy may enter into a term
    contract under subsection (a) only if the Secretary determines that
    available commercial salvage facilities are inadequate to meet the
    requirements of national defense.
        ``(d) Public Notice.--The Secretary may not enter into a contract
    under subsection (a) until the Secretary has provided public notice of
    the intent to enter into such a contract.

    ``Sec. 7362. Acquisition and transfer of vessels and equipment

        ``(a) Authority.--The Secretary of the Navy may acquire or transfer
    for operation by private salvage companies such vessels and equipment as
    the Secretary considers necessary.
        ``(b) Agreement on Use.--Before any salvage vessel or salvage gear
    is transferred by the Secretary to a private party, the private party
    must agree in writing with the Secretary that the vessel or gear will be
    used to support organized offshore salvage facilities for a period of as
    many years as the Secretary considers appropriate.

    [[Page 110 STAT. 425]]

        ``(c) Reference to Authority To Advance Funds for Immediate Salvage
    Operations.--For authority for the Secretary of the Navy to advance to
    private salvage companies such funds as the Secretary considers
    necessary to provide for the immediate financing of salvage operations,
    see section 2307(g)(2) of this title.

    ``Sec. 7363. Settlement of claims

        ``The Secretary of the Navy may settle any claim by the United
    States for salvage services rendered by the Department of the Navy and
    may receive payment of any such claim.

    ``Sec. 7364. Disposition of receipts

        ``Amounts received under this chapter shall be credited to
    appropriations for maintaining naval salvage facilities. However, any
    amount received under this chapter in any fiscal year in excess of naval
    salvage costs incurred by the Navy during that fiscal year shall be
    deposited into the general fund of the Treasury.''.
    SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE
                              CONTRACTS.

        (a) In General.--The Secretary of the Navy shall ensure that any
    vessel that is covered by the contract referred to in subsection (b)
    remains covered by that contract, regardless of the operating command to
    which the vessel is subsequently assigned, unless the vessel is taken
    out of service for the Department of the Navy.
        (b) Covered Contract.--The contract referred to in subsection (a) is
    the contract entered into before the date of the enactment of this Act
    for the phased maintenance of AE class ships.
    SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS OF
                              VESSELS.

        Section 7310(a) of title 10, United States Code, is amended by
    inserting ``or Guam'' after ``the United States'' the second place it
    appears.
    SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS
                              SHIPS.

        It is the sense of Congress that the Secretary of the Navy--
                (1) should name the vessel to be designated LHD-7 as the
            U.S.S. Iwo Jima; and
                (2) should name the vessel to be designated LPD-17, and each
            subsequent ship of the LPD-17 class, after a Marine Corps battle
            or a member of the Marine Corps.
    SEC. 1019.  <<NOTE: Joseph Vittori.>> SENSE OF CONGRESS CONCERNING
                              NAMING OF NAVAL
                              VESSEL.

        It is the sense of Congress that the Secretary of the Navy should
    name an appropriate ship of the United States Navy the U.S.S. Joseph
    Vittori, in honor of Marine Corporal Joseph Vittori (1929-1951) of
    Beverly, Massachusetts, who was posthumously awarded the Medal of Honor
    for actions against the enemy in Korea on September 15-16, 1951.

    SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

        (a) Authority To Transfer Vessel.--Notwithstanding subsections (a)
    and (d) of section 7306 of title 10, United States Code, but subject to
    subsections (b) and (c) of that section, the Secretary of the Navy may
    transfer a vessel described in subsection (b)

    [[Page 110 STAT. 426]]

    to Tidewater Community College, Portsmouth, Virginia, for scientific and
    educational purposes.
        (b) Vessel.--The authority under subsection (a) applies in the case
    of a riverine patrol craft of the U.S.S. Swift class.
        (c) Limitation.--The transfer authorized by subsection (a) may be
    made only if the Secretary determines that the vessel to be transferred
    is of no further use to the United States for national security
    purposes.
        (d) Terms and Conditions.--The Secretary may require such terms and
    conditions in connection with the transfer authorized by this section as
    the Secretary considers appropriate.

                       Subtitle C--Counter-Drug Activities

    SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL
                              SUPPORT OF DRUG INTERDICTION AND
                              COUNTER-DRUG ACTIVITIES OF THE NATIONAL
                              GUARD.

        (a) Funding Assistance Authorized.--Subsection (a) of section 112 of
    title 32, United States Code, is amended to read as follows:
        ``(a) Funding Assistance.--The Secretary of Defense may provide
    funds to the Governor of a State who submits to the Secretary a State
    drug interdiction and counter-drug activities plan satisfying the
    requirements of subsection (c). Such funds shall be used for--
                ``(1) the pay, allowances, clothing, subsistence,
            gratuities, travel, and related expenses, as authorized by State
            law, of personnel of the National Guard of that State used,
            while not in Federal service, for the purpose of drug
            interdiction and counter-drug activities;
                ``(2) the operation and maintenance of the equipment and
            facilities of the National Guard of that State used for the
            purpose of drug interdiction and counter-drug activities; and
                ``(3) the procurement of services and leasing of equipment
            for the National Guard of that State used for the purpose of
            drug interdiction and counter-drug activities.''.

        (b) Reorganization of Section.--Such section is further amended--
                (1) by redesignating subsection (f) as subsection (h);
                (2) by redesignating subsection (d) as subsection (g) and
            transferring that subsection to appear before subsection (h), as
            redesignated by paragraph (1); and
                (3) by redesignating subsections (b) and (c) as subsections
            (c) and (d), respectively.

        (c) State Drug Interdiction and Counter-drug Activities Plan.--
    Subsection (c) of such section, as redesignated by subsection (b)(3), is
    amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``A plan referred to in subsection (a)'' and inserting in lieu
            thereof ``A State drug interdiction and counter-drug activities
            plan'';
                (2) by striking out ``and'' at the end of paragraph (2); and
                (3) in paragraph (3)--
                        (A) by striking out ``annual training'' and
                    inserting in lieu thereof ``training'';

    [[Page 110 STAT. 427]]

                        (B) by striking out the period at the end and
                    inserting in lieu thereof a semicolon; and
                        (C) <<NOTE: Certification.>> by adding at the end
                    the following new paragraphs:
                ``(4) include a certification by the Attorney General of the
            State (or, in the case of a State with no position of Attorney
            General, a civilian official of the State equivalent to a State
            attorney general) that the use of the National Guard of the
            State for the activities proposed under the plan is authorized
            by, and is consistent with, State law; and
                ``(5) certify that the Governor of the State or a civilian
            law enforcement official of the State designated by the Governor
            has determined that any activities included in the plan that are
            carried out in conjunction with Federal law enforcement agencies
            serve a State law enforcement purpose.''.

        (d) Examination of State Plan.--Subsection (d) of such section, as
    redesignated by subsection (b)(3), is amended--
                (1) in paragraph (1)--
                        (A) by striking out ``subsection (b)'' and inserting
                    in lieu thereof ``subsection (c)''; and
                        (B) by inserting after ``Before funds are provided
                    to the Governor of a State under this section'' the
                    following: ``and before members of the National Guard of
                    that State are ordered to full-time National Guard duty
                    as authorized in subsection (b)''; and
                (2) in paragraph (3)--
                        (A) in subparagraph (A), by striking out
                    ``subsection (b)'' and inserting in lieu thereof
                    ``subsection (c)''; and
                        (B) by striking out subparagraph (B) and inserting
                    in lieu thereof the following:
                ``(B) pursuant to the plan submitted for a previous fiscal
            year, funds were provided to the State in accordance with
            subsection (a) or personnel of the National Guard of the State
            were ordered to perform full-time National Guard duty in
            accordance with subsection (b).''.

        (e) Use of Personnel Performing Full-Time National Guard Duty.--Such
    section is further amended by inserting after subsection (a) the
    following new subsection (b):
        ``(b) <<NOTE: Regulations.>> Use of Personnel Performing Full-Time
    National Guard Duty.--Under regulations prescribed by the Secretary of
    Defense, personnel of the National Guard of a State may, in accordance
    with the State drug interdiction and counter-drug activities plan
    referred to in subsection (c), be ordered to perform full-time National
    Guard duty under section 502(f) of this title for the purpose of
    carrying out drug interdiction and counter-drug activities.''.

        (f) End Strength Limitation.--Such section is further
    amended by inserting after subsection (e) the following new subsection
    (f):
        ``(f) End Strength Limitation.--(1) Except as provided in paragraph
    (2), at the end of a fiscal year there may not be more than 4000 members
    of the National Guard--
                ``(A) on full-time National Guard duty under section 502(f)
            of this title to perform drug interdiction or counter-drug
            activities pursuant to an order to duty for a period of more
            than 180 days; or
                ``(B) on duty under State authority to perform drug
            interdiction or counter-drug activities pursuant to an order to
            duty for a period of more than 180 days with State pay and allow

    [[Page 110 STAT. 428]]

            ances being reimbursed with funds provided under subsection
            (a)(1).

        ``(2) The Secretary of Defense may increase the end strength
    authorized under paragraph (1) by not more than 20 percent for any
    fiscal year if the Secretary determines that such an increase is
    necessary in the national security interests of the United States.''.
        (g) Definitions.--Subsection (h) of such section, as redesignated by
    subsection (b)(1), is amended by striking out paragraph (1) and
    inserting in lieu thereof the following:
                ``(1) The term `drug interdiction and counter-drug
            activities', with respect to the National Guard of a State,
            means the use of National Guard personnel in drug interdiction
            and counter-drug law enforcement activities authorized by the
            law of the State and requested by the Governor of the State.''.

        (h) Technical Amendments.--Subsection (e) of such section is
    amended--
                (1) in paragraph (1), by striking out ``sections 517 and
            524'' and inserting in lieu thereof ``sections 12011 and
            12012''; and
                (2) in paragraph (2), by striking out ``the Committees on
            Armed Services of the Senate and House of Representatives'' and
            inserting in lieu thereof ``the Committee on Armed Services of
            the Senate and the Committee on National Security of the House
            of Representatives''.

                         Subtitle D--Civilian Personnel

    SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

        Section 129 of title 10, United States Code, is amended--
                (1) in subsection (a)--
                        (A) by striking out ``man-year constraint or
                    limitation'' and inserting in lieu thereof ``constraint
                    or limitation in terms of man years, end strength, full-
                    time equivalent positions, or maximum number of
                    employees''; and
                        (B) by adding at the end the following new sentence:
                    ``The Secretary of Defense and the Secretaries of the
                    military departments may not be required to make a
                    reduction in the number of full-time equivalent
                    positions in the Department of Defense unless such
                    reduction is necessary due to a reduction in funds
                    available to the Department or is required under a law
                    that is enacted after the date of the enactment of the
                    National Defense Authorization Act for Fiscal Year 1996
                    and that refers specifically to this subsection.'';
                (2) in subsection (b)(2), by striking out ``any end-
            strength'' and inserting in lieu thereof ``any constraint or
    limitation in terms of man years, end strength, full-time equivalent
    positions, or maximum number of employees''; and
                (3) by adding at the end the following new subsection:

        ``(d) With respect to each budget activity within an appropriation
    for a fiscal year for operations and maintenance, the Secretary of
    Defense shall ensure that there are employed during that fiscal year
    employees in the number and with the combination of skills and
    qualifications that are necessary to carry out the functions

    [[Page 110 STAT. 429]]

    within that budget activity for which funds are provided for that fiscal
    year.''.
    SEC. 1032.  <<NOTE: 10 USC 129a note.>> CONVERSION OF MILITARY
                              POSITIONS TO CIVILIAN POSITIONS.

        (a) Conversion Requirement.--(1) <<NOTE: Effective date.>> By
    September 30, 1997, the Secretary of Defense shall convert at least
    10,000 military positions to civilian positions.

        (2) At least 3,000 of the military positions converted to satisfy
    the requirement of paragraph (1) shall be converted to civilian
    positions not later than September 30, 1996.
        (3) In this subsection:
                (A) The term ``military position'' means a position that, as
            of the date of the enactment of this Act, is authorized to be
            filled by a member of the Armed Forces on active duty.
                (B) The term ``civilian position'' means a position that is
            required to be filled by a civilian employee of the Department
            of Defense.

        (b) Implementation Plan.--Not later than March 31, 1996, the
    Secretary of Defense shall submit to the Committee on Armed Services of
    the Senate and the Committee on National Security of the House of
    Representatives a plan for the implementation of subsection (a).
    SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CERTAIN
                              EMPLOYEES.

        (a) Elimination of Limitation.--Subsection (b) of section 3341 of
    title 5, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following:

        ``(2) The 120-day limitation in paragraph (1) for details and
    renewals of details does not apply to the Department of Defense in the
    case of a detail--
                ``(A) made in connection with the closure or realignment of
            a military installation pursuant to a base closure law or an
            organizational restructuring of the Department as part of a
            reduction in the size of the armed forces or the civilian
            workforce of the Department; and
                ``(B) in which the position to which the employee is
            detailed is eliminated on or before the date of the closure,
            realignment, or restructuring.

        ``(c) For purposes of this section--
                ``(1) the term `base closure law' means--
                        ``(A) section 2687 of title 10;
                        ``(B) title II of the Defense Authorization
                    Amendments and Base Closure and Realignment Act (10
                    U.S.C. 2687 note); and
                        ``(C) the Defense Base Closure and Realignment Act
                    of 1990 (10 U.S.C. 2687 note); and
                ``(2) the term `military installation'--
                        ``(A) in the case of an installation covered by
                    section 2687 of title 10, has the meaning given such
                    term in subsection (e)(1) of such section;
                        ``(B) in the case of an installation covered by the
                    Act referred to in subparagraph (B) of paragraph (1),
                    has the meaning given such term in section 209(6) of
                    such Act; and

    [[Page 110 STAT. 430]]

                        ``(C) in the case of an installation covered by the
                    Act referred to in subparagraph (C) of that paragraph,
                    has the meaning given such term in section 2910(4) of
                    such Act.''.

        (b) <<NOTE: 5 USC 3341 note.>> Applicability.--The amendments made
    by subsection (a) apply to details made before the date of the enactment
    of this Act but still in effect on that date and details made on or
    after that date.
    SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF
                              DEFENSE TO PARTICIPATE VOLUNTARILY IN
                              REDUCTIONS IN FORCE.

        Section 3502 of title 5, United States Code, is amended by adding at
    the end the following:
        ``(f)(1) The Secretary of Defense or the Secretary of a military
    department may--
                ``(A) release in a reduction in force an employee who
            volunteers for the release even though the employee is not
            otherwise subject to release in the reduction in force under the
            criteria applicable under the other provisions of this section;
            and
                ``(B) for each employee voluntarily released in the
            reduction in force under subparagraph (A), retain an employee in
            a similar position who would otherwise be released in the
            reduction in force under such criteria.

        ``(2) A voluntary release of an employee in a reduction in force
    pursuant to paragraph (1) shall be treated as an involuntary release in
    the reduction in force.

        ``(3) An employee with critical knowledge and skills (as defined by
    the Secretary concerned) may not participate in a voluntary release
    under paragraph (1) if the Secretary concerned determines that such
    participation would impair the performance of the mission of the
    Department of Defense or the military department concerned.
        ``(4) <<NOTE: Regulations.>> The regulations prescribed under this
    section shall incorporate the authority provided in this subsection.

        ``(5) <<NOTE: Termination date.>> The authority under paragraph (1)
    may not be exercised after September 30, 1996.''.

    SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

        Section 5595 of title 5, United States Code, is amended by adding at
    the end the following:
        ``(i)(1) In the case of an employee of the Department of Defense who
    is entitled to severance pay under this section, the Secretary of
    Defense or the Secretary of the military department concerned may, upon
    application by the employee, pay the
    total amount of the severance pay to the employee in one lump sum.

        ``(2)(A) If an employee paid severance pay in a lump sum under this
    subsection is reemployed by the Government of the United States or the
    government of the District of Columbia at such time that, had the
    employee been paid severance pay in regular pay periods under subsection
    (b), the payments of such pay would have been discontinued under
    subsection (d) upon such reemployment, the employee shall repay to the
    Department of Defense (for the military department that formerly
    employed the employee, if applicable) an amount equal to the amount of
    severance pay to which the employee was entitled under this section that
    would not have been paid to the employee under subsection (d) by reason
    of such reemployment.

    [[Page 110 STAT. 431]]

        ``(B) The period of service represented by an amount of severance
    pay repaid by an employee under subparagraph (A) shall be considered
    service for which severance pay has not been received by the employee
    under this section.
        ``(C) Amounts repaid to an agency under this paragraph shall be
    credited to the appropriation available for the pay of employees of the
    agency for the fiscal year in which received. Amounts so credited shall
    be merged with, and shall be available for the
    same purposes and the same period as, the other funds in that
    appropriation.
        ``(3) If an employee fails to repay to an agency an amount required
    to be repaid under paragraph (2)(A), that amount is recoverable from the
    employee as a debt due the United States.
        ``(4) <<NOTE: Applicability.>> This subsection applies with respect
    to severance pay payable under this section for separations taking
    effect on or after the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 1996 and before October 1, 1999.''.

    SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

        Section 8905a(d)(4) of title 5, United States Code, is amended--
                (1) in subparagraph (A), by inserting ``, or a voluntary
            separation from a surplus position,'' after ``an involuntary
            separation from a position''; and
                (2) by adding at the end the following new subparagraph:

        ``(C) For the purpose of this paragraph, `surplus position' means a
    position which is identified in pre-reduction-in-force planning as no
    longer required, and which is expected to be eliminated under formal
    reduction-in-force procedures.''.
    SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOLUNTARILY
                              SEPARATED MILITARY RESERVE TECHNICIANS.

        (a) Revision of Authority.--Section 3329 of title 5, United States
    Code, as added by section 544 of the National Defense Authorization Act
    for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2415), is amended--
                (1) in subsection (b), by striking out ``be offered'' and
            inserting in lieu thereof ``be provided placement consideration
            in a position described in subsection (c) through a priority
            placement program of the Department of Defense''; and
                (2) by striking out subsection (c) and inserting in lieu
            thereof the following new subsection (c):

        ``(c)(1) The position for which placement consideration shall be
    provided to a former military technician under subsection (b) shall be a
    position--
                ``(A) in either the competitive service or the excepted
            service;
                ``(B) within the Department of Defense; and
                ``(C) in which the person is qualified to serve, taking into
            consideration whether the employee in that position is required
            to be a member of a reserve component of the armed forces as a
            condition of employment.

        ``(2) To the maximum extent practicable, the position shall also be
    in a pay grade or other pay classification sufficient to ensure that the
    rate of basic pay of the former military technician, upon appointment to
    the position, is not less than the rate of basic pay last received by
    the former military technician for technician service before
    separation.''.

    [[Page 110 STAT. 432]]

        (b) Technical and Clerical Amendments.--(1) The section 3329 of
    title 5, United States Code, that was added by section 4431 of the
    National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
    484; 106 Stat. 2719) is redesignated as section 3330 of such title.
        (2) The table of sections at the beginning of chapter 33 of such
    title is amended by striking out the item relating to section 3329, as
    added by section 4431(b) of such Act (106 Stat. 2720), and inserting in
    lieu thereof the following new item:

    ``3330. Government-wide list of vacant positions.''.

    SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

        (a) Requirement.--Section 709(b) of title 32, United States Code, is
    amended to read as follows:
        ``(b) Except as prescribed by the Secretary concerned, a technician
    employed under subsection (a) shall, while so employed--
                ``(1) be a member of the National Guard;
                ``(2) hold the military grade specified by the Secretary
            concerned for that position; and
                ``(3) wear the uniform appropriate for the member's grade
            and component of the armed forces while performing duties as a
            technician.''.

        (b) Uniform Allowances for Officers.--Section 417 of title 37,
    United States Code, is amended by adding at the end the following:
        ``(d)(1) For purposes of sections 415 and 416 of this title, a
    period for which an officer of an armed force, while employed as a
    National Guard technician, is required to wear a uniform under section
    709(b) of title 32 shall be treated as a period of active duty (other
    than for training).
        ``(2) A uniform allowance may not be paid, and uniforms may not be
    furnished, to an officer under section 1593 of title 10 or section 5901
    of title 5 for a period of employment
    referred to in paragraph (1) for which an officer is paid a uniform
    allowance under section 415 or 416 of this title.''.

        (c) Clothing or Allowances for Enlisted Members.--Section 418 of
    title 37, United States Code, is amended--
                (1) by inserting ``(a)'' before ``The President''; and
                (2) by adding at the end the following:

        ``(b) <<NOTE: Regulations. President.>> In determining the quantity
    and kind of clothing or allowances to be furnished pursuant to
    regulations prescribed under this section to persons employed as
    National Guard technicians under section 709 of title 32, the President
    shall take into account the requirement under subsection (b) of such
    section for such persons to wear a uniform.

        ``(c) A uniform allowance may not be paid, and uniforms may not be
    furnished, under section 1593 of title 10 or section 5901 of title 5 to
    a person referred to in subsection (b) for a period of employment
    referred to in that subsection for which a uniform allowance is paid
    under section 415 or 416 of this title.''.
    SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR
                              CERTAIN DUTY OVERSEAS.

        Section 6323 of title 5, United States Code, is amended by adding at
    the end the following new subsection:
        ``(d)(1) A military reserve technician described in section 8401(30)
    is entitled at such person's request to leave without loss

    [[Page 110 STAT. 433]]

    of, or reduction in, pay, leave to which such person is otherwise
    entitled, credit for time or service, or performance or efficiency
    rating for each day, not to exceed 44 workdays in a calendar year, in
    which such person is on active duty without pay, as authorized pursuant
    to section 12315 of title 10, under section 12301(b) or 12301(d) of
    title 10 (other than active duty during a war or national emergency
    declared by the President or Congress) for participation in noncombat
    operations outside the United States, its territories and possessions.
        ``(2) An employee who requests annual leave or compensatory time to
    which the employee is otherwise entitled, for a period during which the
    employee would have been entitled upon request to leave under this
    subsection, may be granted such annual leave or compensatory time
    without regard to this section or section 5519.''.
    SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF
                              NONAPPROPRIATED FUND INSTRUMENTALITIES.

        (a) Clarification of Definition of Nonappropriated Fund
    Instrumentality Employee.--Subsection (a)(1) of section 1587 of title
    10, United States Code, is amended by adding at the end the following
    new sentence: ``Such term includes a civilian employee of a support
    organization within the Department of Defense or a military department,
    such as the Defense Finance and Accounting Service, who is paid from
    nonappropriated funds on account of the nature of the employee's
    duties.''.
        (b) Direct Reporting of Violations.--Subsection (e) of such section
    is amended in the second sentence by inserting before the period the
    following: ``and to permit the reporting of alleged violations of
    subsection (b) directly to the Inspector General of the Department of
    Defense''.

        (c) Technical Amendment.--Subsection (a)(1) of such section is
    further amended by striking out ``Navy Resale and Services Support
    Office'' and inserting in lieu thereof ``Navy Exchange Service
    Command''.

        (d) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:
    ``Sec. 1587. Employees of nonappropriated fund instrumentalities:
                        reprisals''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 81 of such title is amended to read as follows:

    ``1587. Employees of nonappropriated fund instrumentalities:
               reprisals.''.

    SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER
                              AUTHORITY FOR FLEXIBLE AND COMPRESSED
                              WORK SCHEDULES.

        Paragraph (2) of section 6121 of title 5, United States Code, is
    amended to read as follows:
                ``(2) `employee' has the meaning given the term in
            subsection (a) of section 2105 of this title, except that such
            term also includes an employee described in subsection (c) of
            that section;''.

    [[Page 110 STAT. 434]]

    SEC. 1042.  <<NOTE: 10 USC 1587 note.>> LIMITATION ON PROVISION OF
                              OVERSEAS LIVING QUARTERS ALLOWANCES FOR
                              NONAPPROPRIATED FUND INSTRUMENTALITY
                              EMPLOYEES.

        (a) Conforming Allowance to Allowances for Other Civilian
    Employees.--Subject to subsection (b), an overseas living quarters
    allowance paid from nonappropriated funds and provided to a
    nonappropriated fund instrumentality employee after the date of the
    enactment of this Act may not exceed the amount of a quarters allowance
    provided under subchapter III of chapter 59 of title 5 to a similarly
    situated civilian employee of the Department of Defense paid from
    appropriated funds.
        (b) Application to Certain Current Employees.--In the case of a
    nonappropriated fund instrumentality employee who, as of the date of the
    enactment of this Act, receives an overseas living quarters allowance
    under any other authority, subsection (a) shall apply to such employee
    only after the earlier of--
                (1) September 30, 1997; or
                (2) the date on which the employee otherwise ceases to be
            eligible for such an allowance under such other authority.

        (c) Nonappropriated Fund Instrumentality Employee Defined.--For
    purposes of this section, the term ``nonappropriated fund
    instrumentality employee'' has the meaning given such term in section
    1587(a)(1) of title 10, United States Code.

    SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

        (a) In General.--
                (1) Civil service retirement system.--Section 8347(q) of
            title 5, United States Code, is amended--
                        (A) in paragraph (1)--
                              (i) by striking ``of the Department of Defense
                          or the Coast Guard'' in the matter before
                          subparagraph (A); and
                              (ii) by striking ``3 days'' and inserting ``1
                          year''; and
                        (B) in paragraph (2)(C)--
                              (i) by striking ``3 days'' and inserting ``1
                          year''; and
                              (ii) by striking ``in the Department of
                          Defense or the Coast Guard, respectively,''.
                (2) Federal employees' retirement system.--Section 8461(n)
            of title 5, United States Code, is amended--
                        (A) in paragraph (1)--
                              (i) by striking ``of the Department of Defense
                          or the Coast Guard'' in the matter before
                          subparagraph (A); and
                              (ii) by striking ``3 days'' and inserting ``1
                          year''; and
                        (B) in paragraph (2)(C)--
                              (i) by striking ``3 days'' and inserting ``1
                          year''; and
                              (ii) by striking ``in the Department of
                          Defense or the Coast Guard, respectively,''.

        (b) <<NOTE: Notification. 5 USC 8347 note.>> Regulations.--Not later
    than 6 months after the date of the enactment of this Act, the Office of
    Personnel Management (and each of the other administrative authorities,
    within the meaning of subsection (c)(2)(C)(iii)) shall prescribe any
    regulations (or make any modifications in existing regulations)
    necessary to carry

    [[Page 110 STAT. 435]]

    out this section and the amendments made by this section, including
    regulations to provide for the notification of individuals who may be
    affected by the enactment of this section. <<NOTE: Effective date.>> All
    regulations (and modifications to regulations) under the preceding
    sentence shall take effect on the same date.

        (c) <<NOTE: 5 USC 8347 note.>> Applicability; Related Provisions.--
                (1) Prospective rules.--Except as otherwise provided in this
            subsection, the amendments made by this section shall apply with
            respect to moves occurring on or after the effective date of the
            regulations under subsection (b). Moves occurring on or after
            the date of the enactment of this Act and before the effective
            date of such regulations shall be subject to applicable
            provisions of title 5, United States Code, disregarding the
            amendments made by this section, except that any individual
            making an election pursuant to this sentence shall be ineligible
            to make an election otherwise allowable under paragraph (2).
                (2) Retroactive rules.--
                        (A) In general.--The regulations under subsection
                    (b) shall include provisions for the application of
                    sections 8347(q) and 8461(n) of title 5, United States
                    Code, as amended by this section, with respect to any
                    individual who, at any time after December 31, 1965, and
                    before the effective date of such regulations, moved
                    between positions in circumstances that would have
                    qualified such individual to make an election under the
                    provisions of such section 8347(q) or 8461(n), as so
                    amended, if such provisions had then been in effect.
                        (B) Deadline; related provisions.--An election
                    pursuant to this paragraph--
                              (i) shall be made within 1 year after the
                          effective date of the regulations under subsection
                          (b), and
                              (ii) shall have the same force and effect as
                          if it had been timely made at the time of the
                          move,
                    except that no such election may be made by any
                    individual--
                              (I) who has previously made, or had an
                          opportunity to make, an election under section
                          8347(q) or 8461(n) of title 5, United States Code
                          (as in effect before being amended by this
                          section); however, this subclause shall not be
                          considered to render an individual ineligible,
                          based on an opportunity arising out of a move
                          occurring during the period described in the
                          second sentence of paragraph (1), if no election
                          has in fact been made by such individual based on
                          such move;
                              (II) who has not, since the move on which
                          eligibility for the election is based, remained
                          continuously subject (disregarding any break in
                          service of less than 3 days) to CSRS or FERS or
                          both seriatim (if the move was from a NAFI
                          position) or any retirement system (or 2 or more
                          such systems seriatim) established for employees
                          described in section 2105(c) of such title (if the
                          move was to a NAFI position); or
                              (III) if such election would be based on a
                          move to the Civil Service Retirement System from a
                          retirement system established for employees
                          described in section 2105(c) of such title.

    [[Page 110 STAT. 436]]

                        (C) Transfers of contributions.--
                              (i) In general.--If an individual makes an
                          election under this paragraph to be transferred
                          back to a retirement system in which such
                          individual previously participated (in this
                          section referred to as the ``previous system''),
                          all individual contributions (including interest)
                          and Government contributions to the retirement
                          system in which such individual is then currently
                          participating (in this section referred to as the
                          ``current system''), excluding those made to the
                          Thrift Savings Plan or any other defined
                          contribution plan, which are attributable to
                          periods of service performed since the move on
                          which the election is based, shall be paid
    to the fund, account, or other repository for contributions made under
    the previous system. For purposes of this section, the term ``current
    system'' shall be considered also to include any retirement system
    (besides the one in which the individual is participating at the time of
    making the election) in which such individual previously participated
    since the move on which the election is based.
                              (ii) Condition subsequent relating to
                          repayment of lump-sum credit.--In the case of an
                          individual who has received such individual's
                          lump-sum credit (within the meaning of section
                          8401(19) of title 5, United States Code, or a
                          similar payment) from such individual's previous
                          system, the payment described in clause (i) shall
                          not be made (and the election to which it relates
                          shall be ineffective) unless such lump-sum credit
                          is redeposited or otherwise paid at such time and
                          in such manner as shall be required under
                          applicable regulations. Regulations to carry out
                          this clause shall include provisions for the
                          computation of interest (consistent with section
                          8334(e) (2) and (3) of title 5, United States
                          Code), if no provisions for such computation
                          otherwise exist.
                              (iii) Condition subsequent relating to
                          deficiency in payments relative to amounts needed
                          to ensure that benefits are fully funded.--
                                        (I) In general.--Except as provided
                                    in subclause (II), the payment described
                                    in clause (i) shall not be made (and the
                                    election to which it relates shall be
                                    ineffective) if the actuarial present
                                    value of the future benefits that would
                                    be payable under the previous system
                                    with respect to service performed by
                                    such individual after the move on which
                                    the election under this paragraph is
                                    based and before the effective date of
                                    the election, exceeds the total amounts
                                    required to be transferred to the
                                    previous system under the preceding
                                    provisions of this subparagraph with
                                    respect to such service, as determined
                                    by the authority administering such
                                    previous system (in this section
                                    referred to as the ``administrative
                                    authority'').
                                        (II) Payment of deficiency.--A
                                    determination of a deficiency under this
                                    clause shall not

    [[Page 110 STAT. 437]]

                                    render an election ineffective if the
                                    individual pays or arranges to pay, at a
                                    time and in a manner satisfactory to
                                    such administrative authority, the full
                                    amount of the deficiency described in
                                    subclause (I).
                        (D) Alternative election for an individual then
                    participating in fers.--
                              (i) Applicability.--This subparagraph applies
                          with respect to any individual who--
                                        (I) is then currently participating
                                    in FERS; and
                                        (II) would then otherwise be
                                    eligible to make an election under
                                    subparagraphs (A) through (C) of this
                                    paragraph, determined disregarding the
                                    matter in subclause (I) of subparagraph
                                    (B) before the first semicolon therein.
                              (ii) Election.--An individual described in
                          clause (i) may, instead of making an election for
                          which such individual is otherwise eligible under
                          this paragraph, elect to have all prior qualifying
                          NAFI service of such individual treated as
                          creditable service for purposes of any annuity
                          under FERS payable out of the Civil Service
                          Retirement and Disability Fund.
                              (iii) Qualifying nafi service.--For purposes
                          of this subparagraph, the term ``qualifying NAFI
                          service'' means any service which, but for this
                          subparagraph, would be creditable for purposes of
                          any retirement system established for employees
                          described in section 2105(c) of title 5, United
                          States Code.
                              (iv) Service ceases to be creditable for nafi
                          retirement system purposes.--Any qualifying NAFI
                          service that becomes creditable for FERS purposes
                          by virtue of an election made under this
                          subparagraph shall not be creditable for purposes
                          of any retirement system referred to in clause
                          (iii).
                              (v) Conditions.--An election under this
                          subparagraph shall be subject to requirements,
                          similar to those set forth in subparagraph (C), to
                          ensure that--
                                        (I) appropriate transfers of
                                    individual and Government contributions
                                    are made to the Civil Service Retirement
                                    and Disability Fund; and
                                        (II) the actuarial present value of
                                    future benefits under FERS attributable
                                    to service made creditable by such
                                    election is fully funded.
                        (E) Alternative election for an individual then
                    participating in a nafi retirement system.--
                              (i) Applicability.--This subparagraph applies
                          with respect to any individual who--
                                        (I) is then currently participating
                                    in any retirement system established for
                                    employees described in section 2105(c)
                                    of title 5, United States Code (in this
                                    subparagraph referred to as a ``NAFI
                                    retirement system''); and
                                        (II) would then otherwise be
                                    eligible to make an election under
                                    subparagraphs (A) through (C) of this
                                    paragraph (determined disregarding the
                                    matter in subclause (I) of subparagraph
                                    (B) before

    [[Page 110 STAT. 438]]

                                    the first semicolon therein) based on a
                                    move from FERS.
                              (ii) Election.--An individual described in
                          clause (i) may, instead of making an election for
                          which such individual is otherwise eligible under
                          this paragraph, elect to have all prior qualifying
                          FERS service of such individual treated as
                          creditable service for purposes of determining
                          eligibility for benefits under a NAFI retirement
                          system, but not for purposes of computing the
                          amount of any such benefits except as provided in
                          clause (v)(II).
                              (iii) Qualifying fers service.--For purposes
                          of this subparagraph, the term ``qualifying FERS
                          service'' means any service which, but for this
                          subparagraph, would be creditable for purposes of
                          the Federal Employees' Retirement System.
                              (iv) Service ceases to be creditable for
                          purposes of fers.--Any qualifying FERS service
                          that becomes creditable for NAFI purposes by
                          virtue of an election made under this subparagraph
                          shall not be creditable for purposes of the
                          Federal Employees' Retirement System.
                              (v) Funding requirements.--
                                        (I) In general.--Except as provided
                                    in subclause (II), nothing in this
                                    section or in any other provision of law
                                    or any other authority shall be
                                    considered to require any payment or
                                    transfer of monies in order for an
                                    election under this subparagraph to be
                                    effective.
                                        (II) Contribution required only if
                                    individual elects to have service made
                                    creditable for computation purposes as
                                    well.--Under regulations prescribed by
                                    the appropriate administrative
                                    authority, an individual making an
                                    election under this subparagraph may
                                    further elect to have the qualifying
                                    FERS service made creditable for
                                    computation
    purposes under a NAFI retirement system, but only if the individual pays
    or arranges to pay, at a time and in a manner satisfactory to such
    administrative authority, the amount necessary to fully fund the
    actuarial present value of future benefits under the NAFI retirement
    system attributable to the qualifying FERS service.
                (3) Information.--The regulations under subsection (b) shall
            include provisions under which any individual--
                        (A) shall, upon request, be provided information or
                    assistance in determining whether such individual is
                    eligible to make an election under paragraph (2) and, if
                    so, the exact amount of any payment which would be
                    required of such individual in connection with any such
                    election; and
                        (B) may seek any other information or assistance
                    relating to any such election.

        (d) Creditability of NAFI Service for RIF Purposes.--
                (1) In general.--Clause (ii) of section 3502(a)(C) of title
            5, United States Code, is amended by striking ``January 1,
            1987'' and inserting ``January 1, 1966''.

    [[Page 110 STAT. 439]]

                (2) <<NOTE: 5 USC 3502 note.>> Effective date.--
            Notwithstanding any provision of subsection (c), the amendment
            made by paragraph (1) shall--
                        (A) take effect on the date of the enactment of this
                    Act; and
                        (B) apply with respect to any reduction in force
                    carried out on or after such date.
    SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN
                              EMPLOYEES WITH RESPECT TO THE EVACUATION
                              FROM GUANTANAMO, CUBA.

        (a) Extension of Authority.--The Secretary of Defense may, until the
    end of January 31, 1996, and without regard to the time limitations
    specified in subsection (a) of section 5523 of title 5, United States
    Code, make payments under the provisions of such section from funds
    available for the pay of civilian personnel in the case of employees, or
    an employee's dependents or immediate family, evacuated from Guantanamo
    Bay, Cuba, pursuant to the August 26, 1994 order of the
    Secretary. <<NOTE: Effective date. Applicability.>> This section shall
    take effect as of October 1, 1995, and shall apply with respect to
    payments made for periods occurring on or after that date.

        (b) Monthly Report.--On the first day of each month beginning after
    the date of the enactment of this Act and ending before March 1996, the
    Secretary of the Navy shall transmit to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives a report regarding the payment of employees pursuant to
    subsection (a). Each such report shall include, for the month preceding
    the month in which the report is transmitted, a statement of the
    following:
                (1) The number of the employees paid pursuant to such
            section.
                (2) The positions of employment of the employees.
                (3) The number and location of the employees' dependents and
            immediate families.
                (4) The actions taken by the Secretary to eliminate the
            conditions which necessitated the payments.

                Subtitle E--Miscellaneous Reporting Requirements

    SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION REGARDING
                              GUARD AND RESERVE COMPONENTS.

        (a) Report.--The Secretary of Defense shall submit to the
    congressional defense committees, at the same time that the President
    submits the budget for fiscal year 1997 under section 1105(a) of title
    31, United States Code, a report on amounts requested in that budget for
    the Guard and Reserve components.
        (b) Content.--The report shall include the following:
                (1) A description of the anticipated effect that the amounts
            requested (if approved by Congress) will have to enhance the
            capabilities of each of the Guard and Reserve components.
                (2) A listing, with respect to each such component, of each
            of the following:
                        (A) The amount requested for each major weapon
                    system for which funds are requested in the budget for
                    that component.

    [[Page 110 STAT. 440]]

                        (B) The amount requested for each item of equipment
                    (other than a major weapon system) for which funds are
                    requested in the budget for that component.
                        (C) The amount requested for each military
                    construction project, together with the location of each
                    such project, for which funds are requested in the
                    budget for that
                    component.

        (c) Inclusion of Information in Next FYDP.--The Secretary of Defense
    shall specifically display in the next future-years defense program (or
    program revision) submitted to Congress after the date of the enactment
    of this Act the amounts programmed for procurement of equipment and for
    military construction for each of the Guard and Reserve components.
        (d) Definition.--For purposes of this section, the term ``Guard and
    Reserve components'' means the following:
                (1) The Army Reserve.
                (2) The Army National Guard of the United States.
                (3) The Naval Reserve.
                (4) The Marine Corps Reserve.
                (5) The Air Force Reserve.
                (6) The Air National Guard of the United States.
    SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVIDING
                              AUTHORITY FOR USE OF FUNDS DERIVED FROM
                              RECOVERED LOSSES RESULTING FROM
                              CONTRACTOR FRAUD.

        (a) Report.--Not later than April 1, 1996, the Secretary of Defense
    shall submit to Congress a report on the desirability
    and feasibility of authorizing by law the retention and use by the
    Department of Defense of a specified portion (not to exceed three
    percent) of amounts recovered by the Government during any fiscal year
    from losses and expenses incurred by the Department of Defense as a
    result of contractor fraud at military installations.

        (b) Matters To Be Included.--The report shall include the views of
    the Secretary of Defense regarding--
                (1) the degree to which such authority would create enhanced
            incentives for the discovery, investigation, and resolution of
            contractor fraud at military installations; and
                (2) the appropriate allocation for funds that would be
            available for expenditure pursuant to such authority.
    SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE NATIONAL
                              INFORMATION INFRASTRUCTURE AGAINST
                              STRATEGIC ATTACKS.

         <<NOTE: President.>> Not later than 120 days after the date of the
    enactment of this Act, the President shall submit to Congress a report
    setting forth the results of a review of the national policy on
    protecting the national information infrastructure against strategic
    attacks. The report shall include the following:
                (1) A description of the national policy and architecture
            governing the plans for establishing procedures, capabilities,
            systems, and processes necessary to perform indications,
            warning, and assessment functions regarding strategic attacks by
            foreign nations, groups, or individuals, or any other entity
            against the national information infrastructure.
                (2) An assessment of the future of the National
            Communications System (NCS), which has performed the central
            role in ensuring national security and emergency preparedness

    [[Page 110 STAT. 441]]

            communications for essential United States Government and
            private sector users, including a discussion of--
                        (A) whether there is a Federal interest in expanding
                    or modernizing the National Communications System in
                    light of the changing strategic national security
                    environment and the revolution in information
                    technologies; and
                        (B) the best use of the National Communications
                    System and the assets and experience it represents as an
                    integral part of a larger national strategy to protect
                    the United States against a strategic attack on the
                    national information infrastructure.
    SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND COMMISSIONS.

        (a) Study.--The Secretary of Defense shall conduct a study of the
    boards and commissions described in subsection (c). As part of such
    study, the Secretary shall determine, with respect to each such board or
    commission that received support from the Department of Defense during
    fiscal year 1995, whether that board or commission merits continued
    support from the Department.
        (b) Report.--Not later than April 1, 1996, the Secretary shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the results of the study. The report shall include the following:
                (1) A list of each board and commission described in
            subsection (c) that received support from the Department of
            Defense during fiscal year 1995.
                (2) With respect to the boards and commissions specified on
            the list under paragraph (1)--
                        (A) a list of each such board or commission
                    concerning which the Secretary determined under
                    subsection (a) that continued support from the
                    Department of Defense is merited; and
                        (B) a list of each such board or commission
                    concerning which the Secretary determined under
                    subsection (a) that continued support from the
                    Department if not merited.
                (3) For each board and commission specified on the list
            under paragraph (2)(A), a description of--
                        (A) the purpose of the board or commission;
                        (B) the nature and cost of the support provided by
                    the Department to the board or commission during fiscal
                    year 1995;
                        (C) the nature and duration of the support that the
                    Secretary proposes to provide to the board or
                    commission;
                        (D) the anticipated cost to the Department of
                    providing such support; and
                        (E) a justification of the determination that the
                    board or commission merits the continued support of the
                    Department.
                (4) For each board and commission specified on the list
            under paragraph (2)(B), a description of--
                        (A) the purpose of the board or commission;
                        (B) the nature and cost of the support provided by
                    the Department to the board or commission during fiscal
                    year 1995; and

    [[Page 110 STAT. 442]]

                        (C) a justification of the determination that the
                    board or commission does not merit the continued support
                    of the Department.

        (c) Covered Boards and Commissions.--Subsection (a) applies to any
    board or commission (including any board or commission authorized by
    law) that operates within or for the Department of Defense and that--
                (1) provides only policy-making assistance or advisory
            services for the Department; or
                (2) carries out only activities that are not routine
            activities, on-going activities, or activities necessary to the
            routine, on-going operations of the Department.

        (d) Support Defined.--For purposes of this section, the term
    ``support'' includes the provision of any of the following:
                (1) Funds.
                (2) Equipment, materiel, or other assets.
                (3) Services of personnel.
    SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL ACCESS
                              PROGRAMS.

        Section 119(a) of title 10, United States Code, is amended by
    striking out ``February 1'' and inserting in lieu thereof
    ``March 1''.

       Subtitle F--Repeal of Certain Reporting and Other Requirements and
                                   Authorities

    SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

        (a) Volunteers Investing in Peace and Security Program.--(1) Chapter
    89 of title 10, United States Code, <<NOTE: 10 USC 1801 et seq.>> is
    repealed.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part II of subtitle A, of such title are each amended
    by striking out the item relating to chapter 89.
        (b) Security and Control of Supplies.--(1) Chapter 171 of such
    title <<NOTE: 10 USC 2891 et seq.>> is repealed.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part IV of subtitle A, of such title are each amended
    by striking out the item relating to chapter 171.
        (c) Annual Authorization of Military Training Student Loads.--
    Section 115 of such title is amended--
                (1) in subsection (a), by striking out paragraph (3);
                (2) in subsection (b)--
                        (A) by inserting ``or'' at the end of paragraph (1);
                        (B) by striking out ``; or'' at the end of paragraph
                    (2) and inserting in lieu thereof a period; and
                        (C) by striking out paragraph (3); and
                (3) by striking out subsection (f).

        (d) Portions of Annual Manpower Requirements Report.--Section 115a
    of such title is amended--
                (1) in subsection (b)(2), by striking out subparagraph (C);
                (2) by striking out subsection (d);
                (3) by redesignating subsection (e) as subsection (d) and
            striking out paragraphs (4) and (5) thereof;
                (4) by striking out subsection (f); and
                (5) by redesignating subsection (g) as subsection (e).

    [[Page 110 STAT. 443]]

        (e) Obsolete Authority for Payment of Stipends for Members of
    Certain Advisory Committees and Boards of Visitors of Service
    Academies.--(1) The second sentence of each of sections 173(b) and
    174(b) of such title is amended to read as follows: ``Other members and
    part-time advisers shall (except as otherwise specifically authorized by
    law) serve without compensation for such service.''.
        (2) Sections 4355(h), 6968(h), and 9355(h) of such title are amended
    by striking out ``is entitled to not more than $5 a day and''.
        (f) Annual Budget Information Concerning Recruiting Costs.--(1)
    Section 227 of such title is repealed.
        (2) The table of sections at the beginning of chapter 9 of such
    title is amended by striking out the item relating to section 227.
        (g) Expired Authority Relating to Peacekeeping Activities.--(1)
    Section 403 of such title is repealed.
        (2) The table of sections at the beginning of subchapter I of
    chapter 20 of such title is amended by striking out the item relating to
    section 403.
        (h) Procurement of Gasohol for Department of Defense Motor
    Vehicles.--(1) Subsection (a) of section 2398 of such title is repealed.
        (2) Such section is further amended--
                (A) by redesignating subsections (b) and (c) as subsections
            (a) and (b), respectively; and
                (B) in subsection (b), as so redesignated, by striking out
            ``subsection (b)'' and inserting in lieu thereof ``subsection
            (a)''.

        (i) Requirement of Notice of Certain Disposals and Gifts by
    Secretary of Navy.--Section 7545 of such title is amended--
                (1) by striking out subsection (c); and
                (2) by redesignating subsection (d) as subsection (c).

        (j) Annual Report on Biological Defense Research Program.--(1)
    Section 2370 of such title is repealed.
        (2) The table of sections at the beginning of chapter 139 of such
    title is amended by striking out the item relating to such section.
        (k) Reports and Notifications Relating to Chemical and Biological
    Agents.--Subsection (a) of section 409 of Public Law 91-121 (50 U.S.C.
    1511) is repealed.
        (l) Annual Report on Balanced Technology Initiative.--Subsection (e)
    of section 211 of the National Defense Authorization Act for Fiscal
    Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1394) <<NOTE: 10 USC
    113 note.>> is repealed.

        (m) Report on Environmental Restoration Costs for Installations To
    Be Closed Under 1990 Base Closure Law.--Section 2827 of the National
    Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law
    102-190; 10 U.S.C. 2687 note) is amended by striking out subsection (b).
        (n) Limitation on American Diplomatic Facilities in Germany.--
    Section 1432 of the National Defense Authorization Act for Fiscal Year
    1994 (Public Law 103-160; 107 Stat. 1833) is repealed.

    SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

        (a) Annual Report on Relocation Assistance Programs.--Section 1056
    of title 10, United States Code, is amended--

    [[Page 110 STAT. 444]]

                (1) by striking out subsection (f); and
                (2) by redesignating subsection (g) as subsection (f).

        (b) Notice of Salary Increases for Foreign National Employees.--
    Section 1584 of such title is amended--
                (1) by striking out subsection (b); and
                (2) in subsection (a), by striking out ``(a) Waiver of
            Employment Restrictions for Certain Personnel.--''.

        (c) Notice Regarding Contracts Performed for Periods Exceeding 10
    Years.--(1) Section 2352 of such title is repealed.
        (2) The table of sections at the beginning of chapter 139 of such
    title is amended by striking out the item relating to section 2352.
        (d) Report on Low-Rate Production Under Naval Vessel and Military
    Satellite Programs.--Section 2400(c) of such title is amended--
                (1) by striking out paragraph (2); and
                (2) in paragraph (1)--
                        (A) by striking out ``(1)''; and
                        (B) by redesignating clauses (A) and (B) as clauses
                    (1) and (2), respectively.

        (e) Report on Waivers of Prohibition on Employment of Felons.--
    Section 2408(a)(3) of such title is amended by striking out the second
    sentence.
        (f) Report on Determination Not To Debar for Fraudulent Use of
    Labels.--Section 2410f(a) of such title is amended by striking out the
    second sentence.
        (g) Notice of Military Construction Contracts on Guam.--Section
    2864(b) of such title is amended by striking out ``after the 21-day
    period'' and all that follows through ``determination''.
    SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND
                              APPROPRIATIONS ACTS.

        (a) Public Law 99-661 Requirement for Report on Funding for
    Nicaraguan Democratic Resistance.--Section 1351 of the National Defense
    Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat.
    3995; 10 U.S.C. 114 note) is amended--
                (1) by striking out subsection (b); and
                (2) in subsection (a), by striking out ``(a)
            Limitation.--''.

        (b) Annual Report on Overseas Military Facility Investment Recovery
    Account.--Section 2921 of the Military Construction Authorization Act
    for Fiscal Year 1991 (division B of Public Law 101-510; 10 U.S.C. 2687
    note) is amended--
                (1) by striking out subsection (f); and
                (2) by redesignating subsections (g) and (h) as subsections
            (f) and (g), respectively.

        (c) Science, Mathematics, and Engineering Education Master Plan.--
    Section 829 of the National Defense Authorization Act for Fiscal Years
    1992 and 1993 (Public Law 102-190; 105 Stat. 1444; 10 U.S.C. 2192 note)
    is repealed.
        (d) Report Regarding Heating Facility Modernization at
    Kaiserslautern.--Section 8008 of the Department of Defense
    Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 1438), is
    amended by inserting ``but without regard to the notification
    requirement in subsection (b)(2) of such section,'' after ``section 2690
    of title 10, United States Code,''.

    [[Page 110 STAT. 445]]

    SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

        (a) Requirement Under Arms Export Control Act for Quarterly Report
    on Price and Availability Estimates.--Section 28 of the Arms Export
    Control Act (22 U.S.C. 2768) is repealed.
        (b) Annual Report on National Security Agency Executive Personnel.--
    Section 12(a) of the National Security Agency Act of 1959 (50 U.S.C. 402
    note) is amended by striking out
    paragraph (5).
        (c) Reports Concerning Certain Federal Contracting and Financial
    Transactions.--Section 1352 of title 31, United States Code, is
    amended--
                (1) in subsection (b)(6)(A), by inserting ``(other than the
            Secretary of Defense and Secretary of a military department)''
            after ``The head of each agency''; and
                (2) in subsection (d)(1), by inserting ``(other than in the
            case of the Department of Defense or a military department)''
            after ``paragraph (3) of this subsection''.

        (d) Annual Report on Water Resources Project Agreements.--Section
    221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b) is amended--
                (1) by striking out subsection (e); and
                (2) by redesignating subsection (f) as subsection (e).

        (e) Annual Report on Construction of Tennessee-Tombigbee Waterway.--
    Section 185 of the Water Resources Development Act of 1976 (33 U.S.C.
    544c) is amended by striking out the second sentence.
        (f) Annual Report on Monitoring of Navy Home Port Waters.--Section 7
    of the Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2406)
    is amended--
                (1) by striking out subsection (d); and
                (2) by redesignating subsections (e) and (f) as subsections
            (d) and (e), respectively.

              Subtitle G--Department of Defense Education Programs

    SEC. 1071.  <<NOTE: 10 USC 2112 note.>> CONTINUATION OF UNIFORMED
                              SERVICES UNIVERSITY OF THE HEALTH
                              SCIENCES.

        (a) Policy.--Congress reaffirms--
                (1) the prohibition set forth in subsection (a) of section
            922 of the National Defense Authorization Act for Fiscal Year
            1995 (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note)
            regarding closure of the Uniformed Services University of the
            Health Sciences; and
                (2) the expression of the sense of Congress set forth in
            subsection (b) of such section regarding the budgetary
            commitment to continuation of the University.

        (b) Personnel Strength.--During the five-year period beginning on
    October 1, 1995, the personnel staffing levels for the Uniformed
    Services University of the Health Sciences may not be reduced below the
    personnel staffing levels for the University as of October 1, 1993.
        (c) Budgetary Commitment to Continuation.--It is the sense of
    Congress that the Secretary of Defense should budget for the operation
    of the Uniformed Services University of the Health

    [[Page 110 STAT. 446]]

    Sciences during fiscal year 1997 at a level at least equal to the level
    of operations conducted at the University during fiscal year 1995.
    SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNIFORMED
                              SERVICES UNIVERSITY OF THE HEALTH
                              SCIENCES.

        (a) Additional Schools and Programs.--Subsection (h) of section 2113
    of title 10, United States Code, is amended to read as follows:
        ``(h) The Secretary of Defense may establish the following
    educational programs at the University:
                ``(1) Postdoctoral, postgraduate, and technological
            institutes.
                ``(2) A graduate school of nursing.
                ``(3) Other schools or programs that the Secretary
            determines necessary in order to operate the University in a
            cost-effective manner.''.

        (b) Conforming Amendments To Reflect Advisory Nature of Board of
    Regents.--(1) Section 2112(b) of such title is amended by striking out
    ``, upon recommendation of the Board of Regents,''.
        (2) Section 2113 of such title is amended--
                (A) in subsection (a)--
                        (i) by striking out ``a Board of Regents
                    (hereinafter in this chapter referred to as the
                    `Board')'' in the first sentence and inserting in lieu
                    thereof ``the Secretary of Defense''; and
                        (ii) by inserting after the first sentence the
                    following new sentence: ``To assist the Secretary in an
                    advisory capacity, there is a Board of Regents for the
                    University.'';
                (B) in subsection (d), by striking out ``Board'' the first
            place it appears and inserting in lieu thereof ``Secretary'';
                (C) in subsection (e), by striking out ``of Defense'';
                (D) in subsection (f)(1), by striking out ``of Defense'';
                (E) in subsection (g)--
                        (i) by striking out ``Board is authorized to'' in
                    the first sentence and inserting in lieu thereof
                    ``Secretary may'';
                        (ii) by striking out ``Board is also authorized to''
                    in the third sentence and inserting in lieu thereof
                    ``Secretary may''; and
                        (iii) by striking out ``Board may also, subject to
                    the approval of the Secretary of Defense,'' in the fifth
                    sentence and inserting in lieu thereof ``Secretary
                    may''; and
                (F) by striking out ``Board'' each place it appears in
            subsections (f), (i), and (j) and inserting in lieu thereof
            ``Secretary''.

        (3) Section 2114(e)(1) of such title is amended by striking out
    ``Board, upon approval of the Secretary of Defense,'' and inserting in
    lieu thereof ``Secretary of Defense''.
        (c) Clerical Amendments.--(1) The heading of section 2113 of such
    title is amended to read as follows:

    ``Sec. 2113. Administration of University''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 104 of such title is amended to read as
    follows:

    ``2113. Administration of University.''.

    [[Page 110 STAT. 447]]

    SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY
                              PERSONNEL AND DEPENDENTS OUTSIDE THE
                              UNITED STATES.

        Of amounts appropriated pursuant to section 301, $600,000 shall be
    available to carry out adult education programs, consistent with the
    Adult Education Act (20 U.S.C. 1201 et seq.), for the following:
                (1) Members of the Armed Forces who are serving in
            locations--
                        (A) that are outside the United States; and
                        (B) for which amounts are not required to be
                    allotted under section 313(b) of such Act (20 U.S.C.
                    1201b(b)).
                (2) The dependents of such members.
    SEC. 1074. 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
    1996.--(1) Of the amounts authorized to be appropriated in section
    301(5)--
                (A) $30,000,000 shall be available for providing educational
            agencies assistance (as defined in paragraph (4)(A)) to local
            educational agencies; and
                (B) $5,000,000 shall be available for making educational
            agencies payments (as defined in paragraph (4)(B)) to local
            educational agencies.

        (2) <<NOTE: Notification.>> Not later than June 30, 1996, the
    Secretary of Defense shall--
                (A) notify each local educational agency that is eligible
            for educational agencies assistance for fiscal year 1996 of that
            agency's eligibility for such assistance and the amount of such
            assistance for which that agency is eligible; and
                (B) notify each local educational agency that is eligible
            for an educational agencies payment for fiscal year 1996 of that
            agency's eligibility for such payment and the amount of the
            payment for which that agency is eligible.

        (3) The Secretary of Defense shall disburse funds made available
    under subparagraphs (A) and (B) of paragraph (1) not later than 30 days
    after the date on which notification to the eligible local educational
    agencies is provided pursuant to paragraph (2).
        (4) In this section:
                (A) The term ``educational agencies assistance'' means
            assistance authorized under subsection (b) of section 386 of the
            National Defense Authorization Act for Fiscal Year 1993 (Public
            Law 102-484; 20 U.S.C. 238 note).
                (B) The term ``educational agencies payments'' means
            payments authorized under subsection (d) of that section, as
            amended by subsection (d).

        (b) Special Rule for 1994 Payments.--The Secretary of Education
    shall not consider any payment to a local educational agency by the
    Department of Defense, that is available to such agency for current
    expenditures and used for capital expenses, as funds available to such
    agency for purposes of making a determination for fiscal year 1994 under
    section 3(d)(2)(B)(i) of the Act of September 30, 1950 (Public Law 874,
    81st Congress) (as such Act was in effect on September 30, 1994).

    [[Page 110 STAT. 448]]

        (c) <<NOTE: 20 USC 7703 note.>> Reduction in Impact Threshold.--
    Subsection (c)(1) of section 386 of the National Defense Authorization
    Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is
    amended--
                (1) by striking out ``30 percent'' and inserting in lieu
            thereof ``20 percent''; and
                (2) by striking out ``counted under subsection (a) or (b) of
            section 3 of the Act of September 30, 1950 (Public Law 874,
            Eighty-first Congress; 20 U.S.C. 238)'' and inserting in lieu
            thereof ``counted under section 8003(a) of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 7703(a))''.

        (d) <<NOTE: 20 USC 7703 note.>> Adjustments Related to Base Closures
    and Realignments.--Subsection (d) of section 386 of the National Defense
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 28 U.S.C.
    238 note) is amended to read as follows:

        ``(d) Adjustments Related to Base Closures and Realignments.--To
    assist communities in making adjustments resulting from reductions in
    the size of the Armed Forces, the Secretary of Defense shall, in
    consultation with the Secretary of Education, make payments to local
    educational agencies that, during the period between the end of the
    school year preceding the fiscal year for which the payments are
    authorized and the beginning of the school year immediately preceding
    that school year, had an overall reduction of not less than 20 percent
    in the number of military dependent students as a result of the closure
    or realignment of military installations.''.
        (e) <<NOTE: 20 USC 7703 note.>> Extension of Reporting
    Requirement.--Subsection (e)(1) of section 386 of the National Defense
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C.
    238 note) is amended by striking out ``and 1995'' and inserting in lieu
    thereof ``1995, and 1996''.

        (f) Payments for Eligible Federally Connected Children.--Subsection
    (f) of section 8003 of the Elementary and Secondary Education Act of
    1965 (20 U.S.C. 7703) is amended--
                (1) in paragraph (2)--
                        (A) in the matter preceding clause (i) of
                    subparagraph (A), by striking ``only if such agency''
                    and inserting ``if such agency is eligible for a
                    supplementary payment in accordance with subparagraph
                    (B) or such agency''; and
                        (B) by adding at the end the following new
                    subparagraph:
                        ``(D) A local educational agency shall only be
                    eligible to receive additional assistance under this
                    subsection if the Secretary determines that--
                              ``(i) such agency is exercising due diligence
                          in availing itself of State and other financial
                          assistance; and
                              ``(ii) the eligibility of such agency under
                          State law for State aid with respect to the free
                          public education of children described in
                          subsection (a)(1) and the amount of such aid are
                          determined on a basis no less favorable to such
                          agency than the basis used in determining the
                          eligibility of local educational agencies for
                          State aid, and the amount of such aid, with
                          respect to the free public education of other
                          children in the State.''; and
                (2) in paragraph (3)--
                        (A) in subparagraph (A)--

    [[Page 110 STAT. 449]]

                              (i) in the matter preceding clause (i), by
                          inserting ``(other than any amount received under
                          paragraph (2)(B))'' after ``subsection'';
                              (ii) in subclause (I) of clause (i), by
                          striking ``or the average per-pupil expenditure of
                          all the States'';
                              (iii) by amending clause (ii) to read as
                          follows:
                              ``(ii) The Secretary shall next multiply the
                          amount determined under clause (i) by the total
                          number of students in average daily attendance at
                          the schools of the local educational agency.'';
                          and
                              (iv) by amending clause (iii) to read as
                          follows:
                              ``(iii) The Secretary shall next subtract from
                          the amount determined under clause (ii) all funds
                          available to the local educational agency for
                          current expenditures, but shall not so subtract
                          funds provided--
                                        ``(I) under this Act; or
                                        ``(II) by any department or agency
                                    of the Federal Government (other than
                                    the Department) that are used for
                                    capital expenses.''; and
                        (B) by amending subparagraph (B) to read as follows:
                        ``(B) Special rule.--With respect to payments under
                    this subsection for a fiscal year for a local
                    educational agency described in clause (ii) or (iii) of
                    paragraph (2)(A), the maximum amount of payments under
                    this subsection shall be equal to--
                              ``(i) the product of--
                                        ``(I) the average per-pupil
                                    expenditure in all States multiplied by
                                    0.7, except that such amount may not
                                    exceed 125 percent of the average per-
                                    pupil expenditure in all local
                                    educational agencies in the State;
                                    multiplied by
                                        ``(II) the number of students
                                    described in subparagraph (A) or (B) of
                                    subsection (a)(1) for such agency; minus
                              ``(ii) the amount of payments such agency
                          receives under subsections (b) and (d) for such
                          year.''.

        (g) Current Year Data.--Paragraph (4) of section 8003(f) of such Act
    (20 U.S.C. 7703(f)) is amended to read as follows:
                ``(4) Current year data.--For purposes of providing
            assistance under this subsection the Secretary--
                        ``(A) shall use student and revenue data from the
                    fiscal year for which the local educational agency is
                    applying for assistance under this subsection; and
                        ``(B) shall derive the per pupil expenditure amount
                    for such year for the local educational agency's
                    comparable school districts by increasing or decreasing
                    the per pupil expenditure data for the second fiscal
                    year preceding the fiscal year for which the
                    determination is made by the same percentage increase or
                    decrease reflected between the per pupil expenditure
                    data for the fourth fiscal year preceding the fiscal
                    year for which the determination is made and the per
                    pupil expenditure data for such second year.''.

        (h) <<NOTE: 20 USC 7703 note.>> Technical Amendments To Correct
    References to Repealed Law.--Section 386 of the National Defense
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C.
    238 note) is amended--

    [[Page 110 STAT. 450]]

                (1) in subsection (e)(2)--
                        (A) in subparagraph (C), by inserting after ``et
                    seq.),'' the following: ``title VIII of the Elementary
                    and Secondary Education Act of 1965 (20 U.S.C. 7701 et
                    seq.),''; and
                        (B) in subparagraph (D)(iii), by striking out
                    ``under subsections (a) and (b) of section 3 of such Act
                    (20 U.S.C. 238)''; and
                (2) in subsection (h)--
                        (A) in paragraph (1), by striking out ``section
                    14101 of the Elementary and Secondary Education Act of
                    1965'' and inserting in lieu thereof ``section 8013(9)
                    of the Elementary and Secondary Education Act of 1965
                    (20 U.S.C. 7713(9))''; and
                        (B) by striking out paragraph (3) and inserting in
                    lieu thereof the following new paragraph:
                ``(3) The term `State' means each of the 50 States and the
            District of Columbia.''.
    SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE DOMESTIC
                              DEPENDENT SCHOOLS AND DEFENSE
                              DEPENDENTS' EDUCATION SYSTEM.

        Section 2164(e) of title 10, United States Code, is amended by
    adding at the end the following:
        ``(4)(A) The Secretary may, without regard to the provisions of any
    law relating to the number, classification, or compensation of
    employees--
                ``(i) transfer employees from schools established under this
            section to schools in the defense dependents' education system
            in order to provide the services referred to in subparagraph (B)
            to such system; and
                ``(ii) transfer employees from such system to schools
            established under this section in order to provide such services
            to those schools.

        ``(B) The services referred to in subparagraph (A) are the
    following:
                ``(i) Administrative services.
                ``(ii) Logistical services.
                ``(iii) Personnel services.
                ``(iv) Such other services as the Secretary considers
            appropriate.

        ``(C) Transfers under this paragraph shall extend for such periods
    as the Secretary considers appropriate. The Secretary shall provide
    appropriate compensation for employees so transferred.
        ``(D) The Secretary may provide that the transfer of an employee
    under this paragraph occur without reimbursement of the school or system
    concerned.
        ``(E) In this paragraph, the term `defense dependents' education
    system' means the program established and operated under section 1402(a)
    of the Defense Dependents' Education Act of 1978 (20 U.S.C. 921(a)).''.
    SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI BILL
                              EDUCATIONAL ASSISTANCE ALLOWANCE WITH
                              RESPECT TO SKILLS OR SPECIALTIES FOR
                              WHICH THERE IS A CRITICAL SHORTAGE OF
                              PERSONNEL.

        Section 16131 of title 10, United States Code, is amended by adding
    at the end the following new subsection:

    [[Page 110 STAT. 451]]

        ``(j)(1) In the case of a person who has a skill or specialty
    designated by the Secretary concerned as a skill or specialty in which
    there is a critical shortage of personnel or for which it is difficult
    to recruit or, in the case of critical units, retain personnel, the
    Secretary concerned may increase the rate of the educational assistance
    allowance applicable to that person to such rate in excess of the rate
    prescribed under subparagraphs (A) through (D) of subsection (b)(1) as
    the Secretary of Defense considers appropriate, but the amount of any
    such increase may not exceed $350 per month.
        ``(2) In the case of a person who has a skill or specialty
    designated by the Secretary concerned as a skill or specialty in which
    there is a critical shortage of personnel or for which it is difficult
    to recruit or, in the case of critical units, retain personnel, who is
    eligible for educational benefits under chapter 30 (other than section
    3012) of title 38 and who meets the eligibility criteria specified in
    subparagraphs (A) and (B) of section 16132(a)(1) of this title, the
    Secretary concerned may increase the rate of the educational assistance
    allowance applicable to that person to such rate in excess of the rate
    prescribed under section 3015 of title 38 as the Secretary of Defense
    considers appropriate, but the amount of any such increase may not
    exceed $350 per month.
        ``(3) <<NOTE: Regulations.>> The authority provided by paragraphs
    (1) and (2) shall be exercised by the Secretaries concerned under
    regulations prescribed by the Secretary of Defense.''.
    SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT MONTGOMERY
                              GI BILL EDUCATIONAL ASSISTANCE
                              PROGRAM.

        Section 16137 of title 10, United States Code, is amended by
    striking out ``December 15 of each year'' and inserting in lieu thereof
    ``March 1 of each year''.
    SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE OF THE
                              AIR FORCE.

        (a) Limitation to Members of the Air Force.--Section 9315(a)(1) of
    title 10, United States Code, is amended by striking out ``for enlisted
    members of the armed forces'' and inserting in lieu thereof ``for
    enlisted members of the Air Force''.
        (b) <<NOTE: 10 USC 9315 note.>> Effective Date.--The amendment made
    by subsection (a) shall apply with respect to enrollments in the
    Community College of the Air Force after March 31, 1996.
    SEC. 1079. AMENDMENTS TO EDUCATION LOAN REPAYMENT
                              PROGRAMS.

        (a) General Education Loan Repayment Program.--Section 2171(a)(1) of
    title 10, United States Code, is amended--
                (1) by striking out ``or'' at the end of subparagraph (A);
                (2) by redesignating subparagraph (B) as subparagraph (C);
            and
                (3) by inserting after subparagraph (A) the following new
            subparagraph (B):
                ``(B) any loan made under part D of such title (the William
            D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.);
            or''.

        (b) Education Loan Repayment Program for Enlisted Members of
    Selected Reserve With Critical Specialties.--Section 16301(a)(1) of such
    title is amended--

    [[Page 110 STAT. 452]]

                (1) by striking out ``or'' at the end of subparagraph (A);
                (2) by redesignating subparagraph (B) as subparagraph (C);
            and
                (3) by inserting after subparagraph (A) the following new
            subparagraph (B):
                ``(B) any loan made under part D of such title (the William
            D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.);
            or''.

        (c) Education Loan Repayment Program for Health Professions Officers
    Serving in Selected Reserve With Wartime Critical Medical Skill
    Shortages.--Section 16302(a) of such title is amended--
                (1) by redesignating paragraphs (2) through (4) as
            paragraphs (3) through (5) respectively; and
                (2) by inserting after paragraph (1) the following new
            paragraph (2):
                ``(2) any loan made under part D of such title (the William
            D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.);
            or''.

                            Subtitle H--Other Matters

    SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,
                              DEFENSE REINVESTMENT, AND DEFENSE
                              CONVERSION PROGRAMS.

        (a) National Security Objectives for National Technology and
    Industrial Base.--(1) Section 2501 of title 10, United States Code, is
    amended--
                (A) in subsection (a)--
                        (i) by striking out ``Defense Policy'' in the
                    subsection heading and inserting in lieu thereof
                    ``National Security''; and
                        (ii) by striking out paragraph (5);
                (B) by striking out subsection (b); and
                (C) by redesignating subsection (c) as subsection (b).

        (2) The heading of such section is amended to read as follows:
    ``Sec. 2501. National security objectives concerning national
                        technology and industrial base''.

        (b) National Defense Technology and Industrial Base Council.--
    Section 2502(c) of such title is amended--
                (1) in paragraph (1), by striking out subparagraph (B) and
            inserting in lieu thereof the following new subparagraph:
                        ``(B) programs for achieving such national security
                    objectives; and'';
                (2) by striking out paragraph (2); and
                (3) by redesignating paragraph (3) as paragraph (2).

        (c) Modification of Defense Dual-Use Critical Technology
    Partnerships Program.--Section 2511 of such title is amended to read as
    follows:

    ``Sec. 2511. Defense dual-use critical technology program

        ``(a) Establishment of Program.--The Secretary of Defense shall
    conduct a program to further the national security objectives set forth
    in section 2501(a) of this title by encouraging and providing for
    research, development, and application of dual-use critical tech

    [[Page 110 STAT. 453]]

    nologies. The Secretary may make grants, enter into contracts, or enter
    into cooperative agreements and other transactions pursuant to section
    2371 of this title in furtherance of the program. The Secretary shall
    identify projects to be conducted as part of the program.
        ``(b) Assistance Authorized.--The Secretary of Defense may provide
    technical and other assistance to facilitate the achievement of the
    purposes of projects conducted under the program. In providing such
    assistance, the Secretary shall make available, as appropriate for the
    work to be performed, equipment and facilities of Department of Defense
    laboratories (including the scientists and engineers at those
    laboratories) for purposes of projects selected by the Secretary.
        ``(c) Financial Commitment of Non-Federal Government Participants.--
    (1) The total amount of funds provided by the Federal Government for a
    project conducted under the program may not exceed 50 percent of the
    total cost of the project. However, the Secretary of Defense may agree
    to a project in which the total amount of funds provided by the Federal
    Government exceeds 50 percent if the Secretary determines the project is
    particularly meritorious, but the project would not otherwise have
    sufficient non-Federal funding or in-kind contributions.

        ``(2) The Secretary may prescribe regulations to provide for
    consideration of in-kind contributions by non-Federal Government
    participants in a project conducted under the program for the purpose of
    calculating the share of the project costs that has been or is being
    undertaken by such participants. In such regulations, the Secretary may
    authorize a participant that is a small business concern to use funds
    received under the Small Business Innovation Research Program or the
    Small Business Technology Transfer Program to help pay the costs of
    project activities. Any such funds so used may be considered in
    calculating the amount of the financial commitment undertaken by the
    non-Federal Government participants unless the Secretary determines that
    the small business concern has not made a significant equity percentage
    contribution in the project from non-Federal sources.
        ``(3) The Secretary shall consider a project proposal submitted by a
    small business concern without regard to the ability of the small
    business concern to immediately meet its share of the anticipated
    project costs. Upon the selection of a project proposal submitted by a
    small business concern, the small business concern shall have a period
    of not less than 120 days in which to arrange to meet its financial
    commitment requirements under the project from sources other than a
    person of a foreign country. If the Secretary determines upon the
    expiration of that period that the small business concern will be unable
    to meet its share of the anticipated project costs, the Secretary shall
    revoke the selection of the project proposal submitted by the small
    business concern.
        ``(d) Selection Process.--Competitive procedures shall be used in
    the conduct of the program.
        ``(e) Selection Criteria.--The criteria for the selection of
    projects under the program shall include the following:
                ``(1) The extent to which the proposed project advances and
            enhances the national security objectives set forth in section
            2501(a) of this title.
                ``(2) The technical excellence of the proposed project.

    [[Page 110 STAT. 454]]

                ``(3) The qualifications of the personnel proposed to
            participate in the research activities of the proposed project.
                ``(4) An assessment of timely private sector investment in
            activities to achieve the goals and objectives of the proposed
            project other than through the project.
                ``(5) The potential effectiveness of the project in the
            further development and application of each technology proposed
            to be developed by the project for the national technology and
            industrial base.
                ``(6) The extent of the financial commitment of eligible
            firms to the proposed project.
                ``(7) The extent to which the project does not unnecessarily
            duplicate projects undertaken by other agencies.

        ``(f) Regulations.--The Secretary of Defense shall prescribe
    regulations for the purposes of this section.''.
        (d) Federal Defense Laboratory Diversification Program.--Section
    2519 of such title is amended--
                (1) in subsection (b), by striking out ``referred to in
            section 2511(b) of this title''; and
                (2) in subsection (f), by striking out ``section 2511(f)''
            and inserting in lieu thereof ``section 2511(e)''.

        (e) Manufacturing Science and Technology Program.--Subsection (b) of
    section 2525 of such title is amended to read as follows:
        ``(b) Purpose of Program.--The Secretary of Defense shall use the
    program--
                ``(1) to provide centralized guidance and direction
            (including goals, milestones, and priorities) to the military
            departments and the Defense Agencies on all matters relating to
            manufacturing technology;
                ``(2) to direct the development and implementation of
            Department of Defense plans, programs, projects, activities, and
            policies that promote the development and application of
            advanced technologies to manufacturing processes, tools, and
            equipment;
                ``(3) to improve the manufacturing quality, productivity,
            technology, and practices of businesses and workers providing
            goods and services to the Department of Defense;
                ``(4) to promote dual-use manufacturing processes;
                ``(5) to disseminate information concerning improved
            manufacturing improvement concepts, including information on
            such matters as best manufacturing practices, product data
            exchange specifications, computer-aided acquisition and
            logistics support, and rapid acquisition of manufactured parts;
                ``(6) to sustain and enhance the skills and capabilities of
            the manufacturing work force;
                ``(7) to promote high-performance work systems (with
            development and dissemination of production technologies that
            build upon the skills and capabilities of the work force), high
            levels of worker education and training; and
                ``(8) to ensure appropriate coordination between the
            manufacturing technology programs and industrial preparedness
            programs of the Department of Defense and similar programs
            undertaken by other departments and agencies of the Federal
            Government or by the private sector.''.

        (f) Repeal of Various Assistance Programs.--Sections 2512, 2513,
    2520, 2521, 2522, 2523, and 2524 of such title are repealed.

    [[Page 110 STAT. 455]]

        (g) Repeal of Military-Civilian Integration and Technology Transfer
    Advisory Board.--Section 2516 of such title is repealed.
        (h) Repeal of Obsolete Definitions.--Section 2491 of such title is
    amended--
                (1) by striking out paragraphs (11) and (12); and
                (2) by redesignating paragraphs (13), (14), (15), and (16)
            as paragraphs (11), (12), (13), and (14), respectively.

        (i) Clerical Amendments.--(1) The table of sections at the beginning
    of subchapter II of chapter 148 of such title is amended by striking out
    the item relating to section 2501 and inserting in lieu thereof the
    following new item:

    ``2501. National security objectives concerning national technology and
               industrial base.''.

        (2) The table of sections at the beginning of subchapter III of such
    chapter is amended--
                (A) by striking out the item relating to section 2511 and
            inserting in lieu thereof the following new item:

    ``2511. Defense dual-use critical technology program.''; and

                (B) by striking out the items relating to sections 2512,
            2513, 2516, and 2520.

        (3) The table of sections at the beginning of subchapter IV of such
    chapter is amended by striking out the items relating to sections 2521,
    2522, 2523, and 2524.

    SEC. 1082. AMMUNITION INDUSTRIAL BASE.

        (a) Review of Ammunition Procurement Programs.--The Secretary of
    Defense shall carry out a review of the programs of the Department of
    Defense for the procurement of ammunition. The review shall include the
    Department of Defense management of ammunition procurement programs,
    including the procedures of the Department for the planning for,
    budgeting for, administration, and carrying out of such programs. The
    Secretary shall begin the review not later than 30 days after the date
    of the enactment of this Act.
        (b) Matters To Be Reviewed.--The review under subsection (a) shall
    include an assessment of the following:
                (1) The practicability and desirability of (A) continuing to
            use centralized procurement practices (through a single
            executive agent) for the procurement of ammunition required by
            the Armed Forces, and (B) using such centralized procurement
            practices for the procurement of all such ammunition.
                (2) The capability of the ammunition production facilities
            of the Government to meet the requirements of the Armed Forces
            for procurement of ammunition.
                (3) The practicability and desirability of converting those
            ammunition production facilities to ownership or operation by
            private sector entities.
                (4) The practicability and desirability of integrating the
            budget planning for the procurement of ammunition among the
            Armed Forces.
                (5) The practicability and desirability of establishing an
            advocate within the Department of Defense for matters relating
            to the ammunition industrial base, with such an advocate to be
            responsible for--
                        (A) establishing the quantity and price of
                    ammunition procured by the Armed Forces; and

    [[Page 110 STAT. 456]]

                        (B) establishing and implementing policy to ensure
                    the continuing capability of the ammunition industrial
                    base in the United States to meet the requirements of
                    the Armed Forces.
                (6) The practicability and desirability of providing
            information on the ammunition procurement practices of the Armed
            Forces to Congress through a single source.

        (c) Report.--Not later than April 1, 1996, the Secretary shall
    submit to the congressional defense committees a report on the review
    carried out under subsection (a). The report shall include the
    following:
                (1) The results of the review.
                (2) A discussion of the methodologies used in carrying out
            the review.
                (3) An assessment of various methods of ensuring the
            continuing capability of the ammunition industrial base of the
            United States to meet the requirements of the Armed Forces.
                (4) Recommendations of means (including legislation) of
            implementing those methods in order to ensure such continuing
            capability.
    SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL CAPACITY.

        No funds appropriated pursuant to an authorization of appropriations
    in this Act may be used for capital investment in, or the development
    and construction of, a Government-owned, Government-operated defense
    industrial facility unless the Secretary of Defense certifies to the
    Congress that no similar capability or minimally used capacity exists in
    any other Government-owned, Government-operated defense industrial
    facility.
    SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY SCHOOL
                              STUDENT INFORMATION FOR RECRUITING
                              PURPOSES.

        (a) Sense of Congress.--It is the sense of Congress that--
                (1) the States (with respect to public schools) and entities
            operating private secondary schools should not have a policy of
            denying, or otherwise effectively preventing, the Secretary of
            Defense from obtaining for military recruiting purposes--
                        (A) entry to any secondary school or access to
                    students at any secondary school equal to that of other
                    employers; or
                        (B) access to directory information pertaining to
                    students at secondary schools equal to that of other
                    employers (other than in a case in which an objection
                    has been raised as described in paragraph (2)); and
                (2) any State, and any entity operating a private secondary
            school, that releases directory information secondary school
            students should--
                        (A) give public notice of the categories of such
                    information to be released; and
                        (B) allow a reasonable period after such notice has
                    been given for a student or (in the case of an
                    individual younger than 18 years of age) a parent to
                    inform the school that any or all of such information
                    should not be released without obtaining prior consent
                    from the student or the parent, as the case may be.

    [[Page 110 STAT. 457]]

        (b) Report on DOD Procedures.--Not later than March 1, 1996, the
    Secretary of Defense shall submit to Congress a report on Department of
    Defense procedures for determining if and when a State or an entity
    operating a private secondary school has denied or prevented access to
    students or information as described in subsection (a)(1).
        (c) Definitions.--For purposes of this section:
                (1) The term ``directory information'' means, with respect
            to a student, the student's name, address, telephone listing,
            date and place of birth, level of education, degrees received,
            and (if available) the most recent previous educational program
            enrolled in by the student.
                (2) The term ``student'' means an individual enrolled in any
            program of education who is 17 years of age or older.
    SEC. 1085.  <<NOTE: 50 USC 435 note.>> DISCLOSURE OF INFORMATION
                              CONCERNING UNACCOUNTED FOR UNITED STATES
                              PERSONNEL FROM THE KOREAN CONFLICT, THE
                              VIETNAM ERA, AND THE COLD WAR.

        Section 1082 of the National Defense Authorization Act for Fiscal
    Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401 note) is
    amended--
                (1) in subsection (b)(3)(A), by striking out ``cannot be
            located after a reasonable effort.'' and inserting in lieu
            thereof ``cannot be located by the Secretary of Defense--
                        ``(i) in the case of a person missing from the
                    Vietnam era, after a reasonable effort; and
                        ``(ii) in the case of a person missing from the
                    Korean Conflict or Cold War, after a period of 90 days
                    from the date on which any record or other information
                    referred to in paragraph (2) is received by the
                    Department of Defense for disclosure review from the
                    Archivist of the United States, the Library of Congress,
                    or the Joint United States-Russian Commission on POW/
                    MIAs.''; and
                (2) in subsection (c)(1), by striking out ``not later than
            September 30, 1995'' and inserting in lieu thereof ``not later
            than January 2, 1996''.

    SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

        (a) Submittal of JCS Report on Aircraft.--Not later than February 1,
    1996, the Secretary of Defense shall submit to Congress the report that,
    as of the date of the enactment of this Act, is in preparation by the
    Chairman of the Joint Chiefs of Staff on operational support airlift
    aircraft.
        (b) Content of Report.--(1) The report referred to in subsection (a)
    shall contain findings and recommendations on the
    following:
                (A) Requirements for the modernization and safety of the
            operational support airlift aircraft fleet.
                (B) The disposition of aircraft that would be excess to that
            fleet upon fulfillment of the requirements referred to in
            subparagraph (A).
                (C) Plans and requirements for the standardization of the
            fleet, including plans and requirements for the provision of a
            single manager for all logistical support and operational
            requirements.
                (D) Central scheduling of all operational support airlift
            aircraft.

    [[Page 110 STAT. 458]]

                (E) Needs of the Department for helicopter support in the
            National Capital Region, including the acceptable uses of that
            support.

        (2) In preparing the report, the Chairman of the Joint Chiefs of
    Staff shall take into account the recommendation of the Commission on
    Roles and Missions of the Armed Forces to reduce the size of the
    operational support airlift aircraft fleet.
        (c) Regulations.--(1) Upon completion of the report referred to in
    subsection (a), the Secretary shall prescribe regulations, consistent
    with the findings and recommendations set forth in the report, for the
    operation, maintenance, disposition, and use of operational support
    airlift aircraft.
        (2) The regulations shall, to the maximum extent practicable,
    provide for, and encourage the use of, commercial airlines in lieu of
    the use of such aircraft.
        (3) The regulations shall apply uniformly throughout the Department.
        (4) The regulations shall not require exclusive use of such aircraft
    for any particular class of government personnel.
        (d) Reductions in Flying Hours.--(1) The Secretary shall ensure that
    the number of hours flown during fiscal year 1996 by operational support
    airlift aircraft does not exceed the number equal to 85 percent of the
    number of hours flown during fiscal year 1995 by operational support
    airlift aircraft.
        (2) The Secretary should ensure that the number of hours flown in
    the National Capital Region during fiscal year 1996 by helicopters of
    the operational support airlift aircraft fleet does not exceed the
    number equal to 85 percent of the number of hours flown in the National
    Capital Region during fiscal year 1995 by helicopters of the operational
    support airlift aircraft fleet.
        (e) Restriction on Availability of Funds.--Of the funds appropriated
    pursuant to section 301 for the operation and use of operational support
    airlift aircraft, not more than 50 percent is available for obligation
    until the Secretary submits to Congress the report referred to in
    subsection (a).
        (f) Definitions.--In this section:
                (1) The term ``operational support airlift aircraft'' means
            aircraft of the Department of Defense designated within the
            Department as operational support airlift aircraft.
                (2) The term ``National Capital Region'' has the meaning
            given such term in section 2674(f)(2) of title 10, United States
            Code.

    SEC. 1087. CIVIL RESERVE AIR FLEET.

        Section 9512 of title 10, United States Code, is amended by striking
    out ``full Civil Reserve Air Fleet'' in subsections (b)(2) and (e) and
    inserting in lieu thereof ``Civil Reserve Air Fleet''.
    SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO EMERGENCY
                              EVACUATION OR EXTRAORDINARY
                              CIRCUMSTANCES.

        (a) Settlement of Claims of Personnel.--Section 3721(b)(1) of title
    31, United States Code, is amended by inserting after the first sentence
    the following: ``If, however, the claim arose from an emergency
    evacuation or from extraordinary circumstances, the amount settled and
    paid under the authority of the preceding sentence may exceed $40,000,
    but may not exceed $100,000.''.

    [[Page 110 STAT. 459]]

        (b) <<NOTE: 31 USC 3721 note.>> Applicability.--The amendment made
    by subsection (a) shall apply to claims arising before, on, or after the
    date of the enactment of this Act.

        (c) <<NOTE: 31 USC 3721 note.>> Representments of Previously
    Presented Claims.--(1) A claim under subsection (b) of section 3721 of
    title 31, United States Code, that was settled under such section before
    the date of the enactment of this Act may be represented under such
    section, as amended by subsection (a), to the head of the agency
    concerned to recover the amount equal to the difference between the
    actual amount of the damage or loss and the amount settled and paid
    under the authority of such section before the date of the enactment of
    this Act, except that--
                (A) the claim shall be represented in writing within two
            years after the date of the enactment of this Act;
                (B) a determination of the actual amount of the damage or
            loss shall have been made by the head of the agency concerned
            pursuant to settlement of the claim under the authority of such
            section before the date of the enactment of this Act;
                (C) the claimant shall have proof of the determination
            referred to in subparagraph (B); and
                (D) the total of all amounts paid in settlement of the claim
            under the authority of such section may not exceed $100,000.

        (2) Subsection (k) of such section shall not apply to bar
    representment of a claim described in paragraph (1), but shall apply to
    such a claim that is represented and settled under that section after
    the date of the enactment of this Act.
    SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS
                              AGAINST DECEASED MEMBERS.

        Section 3711 of title 31, United States Code, is amended by adding
    at the end the following:
        ``(g)(1) The Secretary of Defense may suspend or terminate an action
    by the Secretary or by the Secretary of a military department under
    subsection (a) to collect a claim against the estate of a person who
    died while serving on active duty as a member of the Army, Navy, Air
    Force, or Marine Corps if the Secretary determines that, under the
    circumstances applicable with respect to the deceased person, it is
    appropriate to do so.
        ``(2) In this subsection, the term `active duty' has the meaning
    given that term in section 101 of title 10.''.
    SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR DEPENDENTS
                              OF UNITED STATES GOVERNMENT PERSONNEL.

        (a) Authority To Carry Out Transactions.--Subsection (b) of section
    3342 of title 31, United States Code, is amended--
                (1) by redesignating paragraphs (3), (4), and (5) as
            paragraphs (4), (5), and (6), respectively; and
                (2) by inserting after paragraph (2) the following new
            paragraph:
                ``(3) a dependent of personnel of the Government, but only--
                        ``(A) at a United States installation at which
                    adequate banking facilities are not available; and
                        ``(B) in the case of negotiation of negotiable
                    instruments, if the dependent's sponsor authorizes, in
                    writing, the presentation of negotiable instruments to
                    the disbursing official for negotiation.''.

    [[Page 110 STAT. 460]]

        (b) Pay Offset.--Subsection (c) of such section is amended--
                (1) by redesignating paragraph (3) as paragraph (4); and
                (2) by inserting after paragraph (2) the following new
            paragraph (3):

        ``(3) The amount of any deficiency resulting from cashing a check
    for a dependent under subsection (b)(3), including any charges assessed
    against the disbursing official by a financial institution for
    insufficient funds to pay the check, may be offset from the pay of the
    dependent's sponsor.''.
        (c) Definitions.--Such section is further amended by adding at the
    end the following:
        ``(e) Regulations prescribed under subsection (d) shall include
    regulations that define the terms `dependent' and `sponsor' for the
    purposes of this section. In the regulations, the term `dependent', with
    respect to a member of a uniformed service, shall have the meaning given
    that term in section 401 of title 37.''.

    SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER. <<NOTE: Virginia.>>

        (a) Designation of National Maritime Center.--The NAUTICUS building,
    located at one Waterside Drive, Norfolk, Virginia, shall be known and
    designated as the ``National Maritime Center''.
        (b) Reference to National Maritime Center.--Any reference in a law,
    map, regulation, document, paper, or other record of the United States
    to the building referred to in subsection (a) shall be deemed to be a
    reference to the ``National Maritime Center''.
    SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION OF
                              MIDWAY ISLANDS.

        (a) Findings.--Congress makes the following findings:
                (1) September 2, 1995, marks the 50th anniversary of the
            United States victory over Japan in World War II.
                (2) The Battle of Midway proved to be the turning point in
            the war in the Pacific, as United States Navy forces inflicted
            such severe losses on the Imperial Japanese Navy during the
            battle that the Imperial Japanese Navy never again took the
            offensive against United States or allied forces.
                (3) During the Battle of Midway, an outnumbered force of the
            United States Navy, consisting of 29 ships and other units of
            the Armed Forces under the command of Admiral Nimitz and Admiral
            Spruance, out-maneuvered and out-fought 350 ships of the
            Imperial Japanese Navy.
                (4) It is in the public interest to erect a memorial to the
            Battle of Midway that is suitable to express the enduring
            gratitude of the American people for victory in the battle and
            to inspire future generations of Americans with the heroism and
            sacrifice of the members of the Armed Forces who achieved that
            victory.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the Midway Islands and the surrounding seas deserve to
            be memorialized;
                (2) the historic structures related to the Battle of Midway
            should be maintained, in accordance with the National Historic
            Preservation Act (16 U.S.C. 470-470t), and subject to the
            availability of appropriations for that purpose.
                (3) appropriate access to the Midway Islands by survivors of
            the Battle of Midway, their families, and other visitors should
            be provided in a manner that ensures the public health and

    [[Page 110 STAT. 461]]

            safety on the Midway Islands and the conservation of the natural
            resources of those islands in accordance with existing Federal
            law.

    SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

        It is the sense of the Senate that in pursuit of a balanced Federal
    budget, Congress should exercise fiscal restraint, particularly in
    authorizing spending not requested by the executive branch and in
    proposing new programs.
    SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK INSURANCE.

        Section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1294),
    is amended by striking ``June 30, 1995'' and inserting in lieu thereof
    ``June 30, 2000''.

     TITLE XI-- <<NOTE: Military Justice Amendments of 1995.>> UNIFORM CODE
    OF MILITARY JUSTICE

    SEC. 1101. <<NOTE: 10 USC 801 note.>> SHORT TITLE.

        This title may be cited as the ``Military Justice Amendments of
    1995''.

    SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

        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 chapter 47 of title 10,
    United States Code (the Uniform Code of Military Justice).

                              Subtitle A--Offenses

    SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

        Section 847(b) (article 47(b)) is amended--
                (1) in the first sentence, by inserting ``indictment or''
            after ``shall be tried on''; and
                (2) in the second sentence, by striking out ``shall be'' and
            all that follows and inserting in lieu thereof ``shall be fined
            or imprisoned, or both, at the court's discretion.''.

    SEC. 1112. FLIGHT FROM APPREHENSION.

        (a) In General.--Section 895 (article 95) is amended to read as
    follows:

    ``Sec. 895. Art. 95. Resistance, flight, breach of arrest, and escape

        ``Any person subject to this chapter who--
                ``(1) resists apprehension;
                ``(2) flees from apprehension;
                ``(3) breaks arrest; or
                ``(4) escapes from custody or confinement;

    shall be punished as a court-martial may direct.''.
        (b) Clerical Amendment.--The item relating to section 895 (article
    95) in the table of sections at the beginning of subchapter X is amended
    to read as follows:

    ``895. Art. 95. Resistance, flight, breach of arrest, and escape.''.

    [[Page 110 STAT. 462]]

    SEC. 1113. CARNAL KNOWLEDGE.

        (a) Gender Neutrality.--Subsection (b) of section 920 (article 120)
    is amended to read as follows:
        ``(b) Any person subject to this chapter who, under circumstances
    not amounting to rape, commits an act of sexual intercourse with a
    person--
                ``(1) who is not that person's spouse; and
                ``(2) who has not attained the age of sixteen years;

    is guilty of carnal knowledge and shall be punished as a court-martial
    may direct.''.
        (b) Mistake of Fact.--Such section (article) is further amended by
    adding at the end the following new subsection:
        ``(d)(1) In a prosecution under subsection (b), it is an affirmative
    defense that--
                ``(A) the person with whom the accused committed the act of
            sexual intercourse had at the time of the alleged offense
            attained the age of twelve years; and
                ``(B) the accused reasonably believed that that person had
            at the time of the alleged offense attained the age of sixteen
            years.

        ``(2) The accused has the burden of proving a defense under
    paragraph (1) by a preponderance of the evidence.''.

                              Subtitle B--Sentences

    SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND ALLOWANCES
                              AND REDUCTIONS IN GRADE BY SENTENCE OF
                              COURT-MARTIAL.

        (a) Effective Date of Specified Punishments.--Subsection (a) of
    section 857 (article 57) is amended to read as follows:
        ``(a)(1) Any forfeiture of pay or allowances or reduction in grade
    that is included in a sentence of a court-martial takes effect on the
    earlier of--
                ``(A) the date that is 14 days after the date on which the
            sentence is adjudged; or
                ``(B) the date on which the sentence is approved by the
            convening authority.

        ``(2) On application by an accused, the convening authority may
    defer a forfeiture of pay or allowances or reduction in grade that would
    otherwise become effective under paragraph (1)(A) until the date on
    which the sentence is approved by the convening authority. Such a
    deferment may be rescinded at any time by the convening authority.
        ``(3) A forfeiture of pay or allowances shall be applicable to pay
    and allowances accruing on and after the date on which the sentence
    takes effect.

        ``(4) In this subsection, the term `convening authority', with
    respect to a sentence of a court-martial, means any person authorized to
    act on the sentence under section 860 of this title (article 60).''.

        (b) <<NOTE: 10 USC 857 note.>> Applicability.--The amendment made by
    subsection (a) shall apply to a case in which a sentence is adjudged by
    a court-martial on or after the first day of the first month that begins
    at least 30 days after the date of the enactment of this Act.

    [[Page 110 STAT. 463]]

    SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING
                              CONFINEMENT.

        (a) Effect of Punitive Separation or Confinement for More Than Six
    Months.--(1) Subchapter VIII is amended by inserting after section 858a
    (article 58a) the following:
    ``Sec. 858b. Art. 58b. Sentences: forfeiture of pay and allowances
                        during confinement

        ``(a)(1) A court-martial sentence described in paragraph (2) shall
    result in the forfeiture of pay and allowances due that member during
    any period of confinement or parole. The forfeiture pursuant to this
    section shall take effect on the date determined under section 857(a) of
    this title (article 57(a)) and may be deferred as provided in that
    section. The pay and allowances forfeited, in the case of a general
    court-martial, shall be all pay and allowances due that member during
    such period and, in the case of a special court-martial, shall be two-
    thirds of all pay and allowances due that member during such period.

        ``(2) A sentence covered by this section is any sentence that
    includes--
                ``(A) confinement for more than six months or death; or
                ``(B) confinement for six months or less and a dishonorable
            or bad-conduct discharge or dismissal.

        ``(b) In a case involving an accused who has dependents, the
    convening authority or other person acting under section 860 of this
    title (article 60) may waive any or all of the forfeitures of pay and
    allowances required by subsection (a) for a period not to exceed six
    months. Any amount of pay or allowances that, except for a waiver under
    this subsection, would be forfeited shall be paid, as the convening
    authority or other person taking action directs, to the dependents of
    the accused.
        ``(c) If the sentence of a member who forfeits pay and allowances
    under subsection (a) is set aside or disapproved or, as finally
    approved, does not provide for a punishment referred to in subsection
    (a)(2), the member shall be paid the pay and allowances which the member
    would have been paid, except for the forfeiture, for the period during
    which the forfeiture was in effect.''.

        (2) The table of sections at the beginning of subchapter VIII is
    amended by adding at the end the following new item:

    ``858b. 58b. Sentences: forfeiture of pay and allowances during
               confinement.''.

        (b) <<NOTE: 10 USC 858b note.>> Applicability.--The section
    (article) added by the amendment made by subsection (a)(1) shall apply
    to a case in which a sentence is adjudged by a court-martial on or after
    the first day of the first month that begins at least 30 days after the
    date of the enactment of this Act.
        (c) Conforming Amendment.--(1) Section 804 of title 37, United
    States Code, is repealed.

        (2) The table of sections at the beginning of chapter 15 of such
    title is amended by striking out the item relating to section 804.

    SEC. 1123. DEFERMENT OF CONFINEMENT.

        (a) Deferment.--Subchapter VIII is amended--
                (1) by inserting after subsection (c) of section 857
            (article 57) the following:

    [[Page 110 STAT. 464]]

    ``Sec. 857a. Art. 57a. Deferment of sentences'';

                (2) by redesignating the succeeding two subsections as
            subsection (a) and (b);
                (3) in subsection (b), as redesignated by paragraph (2), by
            striking out ``postpone'' and inserting in lieu thereof
            ``defer''; and
                (4) by inserting after subsection (b), as redesignated by
            paragraph (2), the following:

        ``(c) In any case in which a court-martial sentences a person to
    confinement and the sentence to confinement has been ordered executed,
    but in which review of the case under section 867(a)(2) of this title
    (article 67(a)(2)) is pending, the Secretary concerned may defer further
    service of the sentence to confinement while that review is pending.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by inserting after the item relating to
    section 857 (article 57) the following new item:

    ``857a. 57a. Deferment of sentences.''.

                   Subtitle C--Pretrial and Post-Trial Actions

    SEC. 1131. ARTICLE 32 INVESTIGATIONS.

        Section 832 (article 32) is amended--
                (1) by redesignating subsection (d) as subsection (e); and
                (2) by inserting after subsection (c) the following new
            subsection (d):

        ``(d) If evidence adduced in an investigation under this article
    indicates that the accused committed an uncharged offense, the
    investigating officer may investigate the subject matter of that offense
    without the accused having first been charged with the offense if the
    accused--
                ``(1) is present at the investigation;
                ``(2) is informed of the nature of each uncharged offense
            investigated; and
                ``(3) is afforded the opportunities for representation,
            cross-examination, and presentation prescribed in subsection
            (b).''.
    SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY FOR
                              CONSIDERATION.

        Section 860(b)(1) (article 60(b)(1)) is amended by inserting after
    the first sentence the following: ``Any such submission shall be in
    writing.''.
    SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY REASON
                              OF LACK OF MENTAL CAPACITY OR MENTAL
                              RESPONSIBILITY.

        (a) Applicable Procedures.--(1) Subchapter IX is amended by
    inserting after section 876a (article 76a) the following:
    ``Sec. 876b. Art. 76b. Lack of mental capacity or mental
                        responsibility: commitment of accused for
                        examination and treatment

        ``(a) Persons Incompetent To Stand Trial.--(1) In the case of a
    person determined under this chapter to be presently suffering from a
    mental disease or defect rendering the person mentally incompetent to
    the extent that the person is unable to understand

    [[Page 110 STAT. 465]]

    the nature of the proceedings against that person or to conduct or
    cooperate intelligently in the defense of the case, the general court-
    martial convening authority for that person shall commit the person to
    the custody of the Attorney General.
        ``(2) The Attorney General shall take action in accordance with
    section 4241(d) of title 18.
        ``(3) If at the end of the period for hospitalization provided for
    in section 4241(d) of title 18, it is determined that the committed
    person's mental condition has not so improved as to permit the trial to
    proceed, action shall be taken in accordance with section 4246 of such
    title.
        ``(4)(A) <<NOTE: Notification.>> When the director of a facility in
    which a person is hospitalized pursuant to paragraph (2) determines that
    the person has recovered to such an extent that the person is able to
    understand the nature of the proceedings against the person and to
    conduct or cooperate intelligently in the defense of the case, the
    director shall promptly transmit a notification of that determination to
    the Attorney General and to the general court-martial convening
    authority for the person. The director shall send a copy of the
    notification to the person's counsel.

        ``(B) Upon receipt of a notification, the general court-martial
    convening authority shall promptly take custody of the person unless the
    person covered by the notification is no longer subject to this chapter.
    If the person is no longer subject to this chapter, the Attorney General
    shall take any action within the authority of the Attorney General that
    the Attorney General considers appropriate regarding the person.
        ``(C) The director of the facility may retain custody of the person
    for not more than 30 days after transmitting the notifications required
    by subparagraph (A).
        ``(5) In the application of section 4246 of title 18 to a case under
    this subsection, references to the court that ordered the commitment of
    a person, and to the clerk of such court, shall be deemed to refer to
    the general court-martial convening authority for that person. However,
    if the person is no longer subject to this chapter at a time relevant to
    the application of such section to the person, the United States
    district court for the district where the person is hospitalized or
    otherwise may be found shall be considered as the court that ordered the
    commitment of the person.
        ``(b) Persons Found Not Guilty by Reason of Lack of Mental
    Responsibility.--(1) If a person is found by a court-martial not guilty
    only by reason of lack of mental responsibility, the person shall be
    committed to a suitable facility until the person is eligible for
    release in accordance with this section.
        ``(2) The court-martial shall conduct a hearing on the mental
    condition in accordance with subsection (c) of section 4243 of title 18.
    Subsections (b) and (d) of that section shall apply with respect to the
    hearing.
        ``(3) <<NOTE: Reports.>> A report of the results of the hearing
    shall be made to the general court-martial convening authority for the
    person.

        ``(4) If the court-martial fails to find by the standard specified
    in subsection (d) of section 4243 of title 18 that the person's release
    would not create a substantial risk of bodily injury to another person
    or serious damage of property of another due to a present mental disease
    or defect--

    [[Page 110 STAT. 466]]

                ``(A) the general court-martial convening authority may
            commit the person to the custody of the Attorney General; and
                ``(B) the Attorney General shall take action in accordance
            with subsection (e) of section 4243 of title 18.

        ``(5) Subsections (f), (g), and (h) of section 4243 of title 18
    shall apply in the case of a person hospitalized pursuant to paragraph
    (4)(B), except that the United States district court for the district
    where the person is hospitalized shall be considered as the court that
    ordered the person's commitment.
        ``(c) General Provisions.--(1) Except as otherwise provided in this
    subsection and subsection (d)(1), the provisions of section 4247 of
    title 18 apply in the administration of this section.
        ``(2) In the application of section 4247(d) of title 18 to hearings
    conducted by a court-martial under this section or by (or by order of) a
    general court-martial convening authority under this section, the
    reference in that section to section 3006A of such title does not apply.
        ``(d) Applicability.--(1) The provisions of chapter 313 of title 18
    referred to in this section apply according to the provisions of this
    section notwithstanding section 4247(j) of title 18.
        ``(2) If the status of a person as described in section 802 of this
    title (article 2) terminates while the person is, pursuant to this
    section, in the custody of the Attorney General, hospitalized, or on
    conditional release under a prescribed regimen of medical, psychiatric,
    or psychological care or treatment, the provisions of this section
    establishing requirements and procedures regarding a person no longer
    subject to this chapter shall continue to apply to that person
    notwithstanding the change of status.''.
        (2) The table of sections at the beginning of such subchapter is
    amended by inserting after the item relating to section 876a (article
    76a) the following:

    ``876b. 76b. Lack of mental capacity or mental responsibility:
               commitment of accused for examination and treatment.''.

        (b) Conforming Amendment.--Section 802 (article 2) is amended by
    adding at the end the following new subsection:
        ``(e) The provisions of this section are subject to section
    876b(d)(2) of this title (article 76b(d)(2)).''.
        (c) <<NOTE: 10 USC 876b note.>> Effective Date.--Section 876b of
    title 10, United States Code (article 76b of the Uniform Code of
    Military Justice), as added by subsection (a), shall take effect at the
    end of the six-month period beginning on the date of the enactment of
    this Act and shall apply with respect to charges referred to courts-
    martial after the end of that period.

                          Subtitle D--Appellate Matters

    SEC. 1141. APPEALS BY THE UNITED STATES.

        (a) Appeals Relating to Disclosure of Classified Information.--
    Section 862(a)(1) (article 62(a)(1)) is amended to read as follows:
        ``(a)(1) In a trial by court-martial in which a military judge
    presides and in which a punitive discharge may be adjudged, the United
    States may appeal the following (other than an order or ruling that is,
    or that amounts to, a finding of not guilty with respect to the charge
    or specification):

    [[Page 110 STAT. 467]]

                ``(A) An order or ruling of the military judge which
            terminates the proceedings with respect to a charge or
            specification.
                ``(B) An order or ruling which excludes evidence that is
            substantial proof of a fact material in the proceeding.
                ``(C) An order or ruling which directs the disclosure of
            classified information.
                ``(D) An order or ruling which imposes sanctions for
            nondisclosure of classified information.
                ``(E) A refusal of the military judge to issue a protective
            order sought by the United States to prevent the disclosure of
            classified information.
                ``(F) A refusal by the military judge to enforce an order
            described in subparagraph (E) that has previously been issued by
            appropriate authority.''.

        (b) Definitions.--Section 801 (article 1) is amended by inserting
    after paragraph (14) the following new paragraphs:
                ``(15) The term `classified information' means (A) any
            information or material that has been determined by an official
            of the United States pursuant to law, an Executive order, or
            regulation to require protection against unauthorized disclosure
            for reasons of national security, and (B) any restricted data,
            as defined in section 11(y) of the Atomic Energy Act of 1954 (42
            U.S.C. 2014(y)).
                ``(16) The term `national security' means the national
            defense and foreign relations of the United States.''.
    SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF
                              THE UNITED STATES TO DESIGNATE ARTICLE
                              III JUDGES FOR TEMPORARY SERVICE ON
                              COURT OF APPEALS FOR THE ARMED FORCES.

        Subsection (i) of section 1301 of the National Defense Authorization
    Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 942
    note) is repealed.

                            Subtitle E--Other Matters

    SEC. 1151.  <<NOTE: 10 USC 802 note.>> ADVISORY COMMITTEE ON
                              CRIMINAL LAW JURISDICTION OVER CIVILIANS
                              ACCOMPANYING THE ARMED FORCES IN TIME OF
                              ARMED CONFLICT.

        (a) Establishment.--Not later than 45 days after the date of the
    enactment of this Act, the Secretary of Defense and the Attorney General
    shall jointly appoint an advisory committee to review and make
    recommendations concerning the appropriate forum for criminal
    jurisdiction over civilians accompanying the Armed Forces in the field
    outside the United States in time of armed conflict.
        (b) Membership.--The committee shall be composed of at least five
    individuals, including experts in military law, international law, and
    Federal civilian criminal law. In making appointments to the committee,
    the Secretary and the Attorney General shall ensure that the members of
    the committee reflect diverse experiences in the conduct of prosecution
    and defense functions.
        (c) Duties.--The committee shall do the following:
                (1) Review historical experiences and current practices
            concerning the use, training, discipline, and functions of
            civilians accompanying the Armed Forces in the field.

    [[Page 110 STAT. 468]]

                (2) Based upon such review and other information available
            to the committee, develop specific recommendations concerning
            the advisability and feasibility of establishing United States
            criminal law jurisdiction over persons who as civilians
            accompany the Armed Forces in the field outside the United
            States during time of armed conflict not involving a war
            declared by Congress, including whether such jurisdiction should
            be established through any of the following means (or a
            combination of such means depending upon the degree of the armed
            conflict involved):
                        (A) Establishing court-martial jurisdiction over
                    such persons.
                        (B) Extending the jurisdiction of the Article III
                    courts to cover such persons.
                        (C) Establishing an Article I court to exercise
                    criminal jurisdiction over such persons.
                (3) Develop such additional recommendations as the committee
            considers appropriate as a result of the review.

        (d) Report.--(1) Not later than December 15, 1996, the advisory
    committee shall transmit to the Secretary of Defense and the Attorney
    General a report setting forth its findings and recommendations,
    including the recommendations required under subsection (c)(2).
        (2) Not later than January 15, 1997, the Secretary of Defense and
    the Attorney General shall jointly transmit the report of the advisory
    committee to Congress. The Secretary and the Attorney General may
    include in the transmittal any joint comments on the report that they
    consider appropriate, and either such official may include in the
    transmittal any separate comments on the report that such official
    considers appropriate.
        (e) Definitions.--For purposes of this section:
                (1) The term ``Article I court'' means a court established
            under Article I of the Constitution.
                (2) The term ``Article III court'' means a court established
            under Article III of the Constitution.

        (f) Termination of Committee.--The advisory committee shall
    terminate 30 days after the date on which the report of the committee is
    submitted to Congress under subsection (d)(2).
    SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN THE
                              UNIFORM CODE OF MILITARY JUSTICE.

        Section 937(a)(1) (article 137(a)(1)) is amended by striking out
    ``within six days'' and inserting in lieu thereof ``within fourteen
    days''.

    SEC. 1153. TECHNICAL AMENDMENT.

        Section 866(f) (article 66(f)) is amended by striking out ``Courts
    of Military Review'' both places it appears and inserting in lieu
    thereof ``Courts of Criminal Appeals''.

    [[Page 110 STAT. 469]]

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

    SEC. 1201. <<NOTE: 22 USC 5955 note.>> SPECIFICATION OF COOPERATIVE
                THREAT REDUCTION PROGRAMS.

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

    SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

        (a) In General.--Of the amount appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs, not more than the following amounts may be obligated
    for the purposes specified:
                (1) For elimination of strategic offensive weapons in
            Russia, Ukraine, Belarus, and Kazakhstan, $90,000,000.
                (2) For weapons security in Russia, $42,500,000.
                (3) For the Defense Enterprise Fund, $0.
                (4) For nuclear infrastructure elimination in Ukraine,
            Belarus, and Kazakhstan, $35,000,000.
                (5) For planning and design of a storage facility for
            Russian fissile material, $29,000,000.
                (6) For planning and design of a chemical weapons
            destruction facility in Russia, $73,000,000.
                (7) For activities designated as Defense and Military
            Contacts/General Support/Training in Russia, Ukraine, Belarus,
            and Kazakhstan, $10,000,000.
                (8) For activities designated as Other Assessments/Support
            $20,500,000.

        (b) Limited Authority To Vary Individual Amounts.--(1) If the
    Secretary of Defense determines that it is necessary to do so in the
    national interest, the Secretary may, subject to paragraph (2), obligate
    amounts for the purposes stated in any of the paragraphs of subsection
    (a) in excess of the amount specified for those purposes in that
    paragraph, but not in excess of 115 percent of that amount. However, the
    total amount obligated for the purposes stated in the paragraphs in
    subsection (a) may not by reason of the use of the authority provided in
    the preceding sentence exceed the sum of the amounts specified in those
    paragraphs.

    [[Page 110 STAT. 470]]

        (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) <<NOTE: Notification.>> the Secretary submits to
            Congress a notification of the intent to do so together with a
            complete discussion of the justification for doing so; and
                (B) 15 days have elapsed following the date of the
            notification.

        (c) Reimbursement of Pay Accounts.--Funds appropriated pursuant to
    the authorization of appropriations in section 301 for Cooperative
    Threat Reduction programs may be transferred to military personnel
    accounts for reimbursement of those accounts for the amount of pay and
    allowances paid to reserve component personnel for service while engaged
    in any activity under a Cooperative Threat Reduction program.
    SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING EXERCISES
                              AND RELATED ACTIVITIES WITH RUSSIA.

        None of the funds appropriated pursuant to the authorization in
    section 301 for Cooperative Threat Reduction programs may be obligated
    or expended for the purpose of conducting with Russia any peacekeeping
    exercise or other peacekeeping-related activity.
    SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS
                              DESTRUCTION.

        Section 211 of Public Law 102-228 (22 U.S.C. 2551 note) is amended
    by adding at the end the following new subsection:
        ``(c) <<NOTE: President.>> As part of a transmission to Congress
    under subsection (b) of a certification that a proposed recipient of
    United States assistance under this title is committed to carrying out
    the matters specified in each of paragraphs (1) through (6) of that
    subsection, the President shall include a statement setting forth, in
    unclassified form (together with a classified annex if necessary), the
    determination of the President, with respect to each such paragraph, as
    to whether that proposed recipient is at that time in fact carrying out
    the matter specified in that paragraph.''.

    SEC. 1205. <<NOTE: 22 USC 5955 note. Reports.>> PRIOR NOTICE TO CONGRESS
                OF OBLIGATION OF FUNDS.

        (a) Annual Requirement.--(1) Not less than 15 days before any
    obligation of any funds appropriated for any fiscal year for a program
    specified under section 1201 as a Cooperative Threat Reduction program,
    the Secretary of Defense shall submit to the congressional committees
    specified in paragraph (2) a report on that proposed obligation for that
    program for that fiscal year.
        (2) The congressional committees referred to in paragraph (1) are
    the following:
                (A) The Committee on Armed Services, the Committee on
            Foreign Relations, and the Committee on Appropriations of the
            Senate.
                (B) The Committee on National Security, the Committee on
            International Relations, and the Committee on Appropriations of
            the House of Representatives.

        (b) Matters To Be Specified in Reports.--Each such report shall
    specify--
                (1) the activities and forms of assistance for which the
            Secretary of Defense plans to obligate funds;
                (2) the amount of the proposed obligation; and

    [[Page 110 STAT. 471]]

                (3) the projected involvement (if any) of any department or
            agency of the United States (in addition to the Department of
            Defense) and of the private sector of the United States in the
            activities and forms of assistance for which the Secretary of
            Defense plans to obligate such funds.

    SEC. 1206. <<NOTE: 22 USC 5955 note.>> REPORT ON ACCOUNTING FOR UNITED
                STATES ASSISTANCE.

        (a) Report.--(1) The Secretary of Defense shall submit to Congress
    an annual report on the efforts made by the United States (including
    efforts through the use of audits, examinations, and on-site
    inspections) to ensure that assistance provided under Cooperative Threat
    Reduction programs is fully accounted for and that such assistance is
    being used for its intended purposes.
        (2) A report shall be submitted under this section not later than
    January 31 of each year until the Cooperative Threat Reduction programs
    are completed.
        (b) Information To Be Included.--Each report under this section
    shall include the following:
                (1) A list of cooperative threat reduction assistance that
            has been provided before the date of the report.
                (2) A description of the current location of the assistance
            provided and the current condition of such assistance.
                (3) A determination of whether the assistance has been used
            for its intended purpose.
                (4) A description of the activities planned to be carried
            out during the next fiscal year to ensure that cooperative
            threat reduction assistance provided during that fiscal year is
            fully accounted for and is used for its intended purpose.

        (c) Comptroller General Assessment.--Not later than 30 days after
    the date on which a report of the Secretary under subsection (a) is
    submitted to Congress, the Comptroller General of the United States
    shall submit to Congress a report giving the Comptroller General's
    assessment of the report and making any recommendations that the
    Comptroller General considers appropriate.
    SEC. 1207.  <<NOTE: Certification.>> LIMITATION ON ASSISTANCE TO
                              NUCLEAR WEAPONS SCIENTISTS OF FORMER
                              SOVIET UNION.

        Amounts appropriated pursuant to the authorization of appropriations
    in section 301 for Cooperative Threat Reduction programs may not be
    obligated for any program established primarily to assist nuclear
    weapons scientists in states of the former Soviet Union until 30 days
    after the date on which the Secretary of Defense certifies in writing to
    Congress that the funds to be obligated will not be used (1) to
    contribute to the modernization of the strategic nuclear forces of such
    states, or (2) for research, development, or production of weapons of
    mass destruction.
    SEC. 1208.  <<NOTE: President.>> LIMITATION RELATING TO OFFENSIVE
                              BIOLOGICAL WARFARE PROGRAM OF RUSSIA.

        (a) Limitation.--Of the amount appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs that is available for the purpose stated in section
    1202(a)(6), $60,000,000 may not be obligated or expended until the
    President submits to Congress either a certification as provided in
    subsection (b) or a certification as provided in subsection (c).

    [[Page 110 STAT. 472]]

        (b) Certification With Respect to Offensive Biological Warfare
    Program of Russia.--A certification under this subsection is a
    certification by the President of each of the following:
                (1) That Russia is in compliance with its obligations under
            the Biological Weapons Convention.
                (2) That Russia has agreed with the United States and the
            United Kingdom on a common set of procedures to govern visits by
            officials of the United States and United Kingdom to military
            biological facilities of Russia, as called for under the Joint
            Statement on Biological Weapons issued by officials of the
            United States, the United Kingdom, and Russia on September 14,
            1992.
                (3) That visits by officials of the United States and United
            Kingdom to the four declared military biological facilities of
            Russia have occurred.

        (c) Alternative Certification.--A certification under this
    subsection is a certification by the President that the President is
    unable to make a certification under subsection (b).
        (d) Use of Funds Upon Alternative Certification.--If the President
    makes a certification under subsection (c), the $60,000,000 specified in
    subsection (a)--
                (1) shall not be available for the purpose stated in section
            1202(a)(6); and
                (2) shall be available for activities in Ukraine,
            Kazakhstan, and Belarus--
                        (A) for the elimination of strategic offensive
                    weapons (in addition to the amount specified in section
                    1202(a)(1)); and
                        (B) for nuclear infrastructure elimination (in
                    addition to the amount specified in section 1202(a)(4)).
    SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS
                              DESTRUCTION FACILITY.

        (a) Limitation.--Of the amount appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs that is available for planning and design of a
    chemical weapons destruction facility, not more than one-half of such
    amount may be obligated or expended until the President certifies to
    Congress the following:
                (1) That the United States and Russia have completed a joint
            laboratory study to determine the feasibility of an appropriate
            technology for destruction of chemical weapons of Russia.
                (2) That Russia is making reasonable progress, with the
            assistance of the United States (if necessary), toward the
            completion of a comprehensive implementation plan for managing
            and funding the dismantlement and destruction of Russia's
            chemical weapons stockpile.
                (3) That the United States and Russia have made substantial
            progress toward resolution, to the satisfaction of the United
            States, of outstanding compliance issues under the 1989 Wyoming
            Memorandum of Understanding and the 1990 Bilateral Destruction
            Agreement.

        (b) Definitions.--In this section:
                (1) The term ``1989 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

    [[Page 110 STAT. 473]]

            Bilateral Verification Experiment and Data Exchange Related to
            Prohibition on Chemical Weapons, signed at Jackson Hole,
            Wyoming, on September 23, 1989.
                (2) The term ``1990 Bilateral Destruction Agreement'' means
            the Agreement between the United States of America and the Union
            of Soviet Socialist Republics on destruction and nonproduction
            of chemical weapons and on measures to facilitate the
            multilateral convention on banning chemical weapons signed on
            June 1, 1990.

                  TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                       Subtitle A--Peacekeeping Provisions

    SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS FOR
                              UNITED STATES SHARE OF COSTS OF UNITED
                              NATIONS PEACEKEEPING ACTIVITIES.

        (a) In General.--Chapter 20 of title 10, United States Code, is
    amended by inserting after section 404 the following new section:
    ``Sec. 405. Use of Department of Defense funds for United States
                      share of costs of United Nations peacekeeping
                      activities: limitation

        ``(a) Prohibition on Use of Funds.--Funds available to the
    Department of Defense may not be used to make a financial contribution
    (directly or through another department or agency of the United States)
    to the United Nations--
                ``(1) for the costs of a United Nations peacekeeping
            activity; or
                ``(2) for any United States arrearage to the United Nations.

        ``(b) Application of Prohibition.--The prohibition in subsection (a)
    applies to voluntary contributions, as well as to contributions pursuant
    to assessment by the United Nations for the United States share of the
    costs of a peacekeeping activity.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter I of such chapter is amended by adding at the end the
    following new item:

    ``405. Use of Department of Defense funds for United States share of
               costs of United Nations peacekeeping activities:
               limitation.''.

                  Subtitle B--Humanitarian Assistance Programs

    SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID
                              PROGRAMS.

        (a) Covered Programs.--For purposes of section 301 and other
    provisions of this Act, programs of the Department of Defense designated
    as Overseas Humanitarian, Disaster, and Civic Aid (OHDACA) programs are
    the programs provided by sections 401, 402, 404, 2547, and 2551 of title
    10, United States Code.
        (b) GAO Report.--Not later than March 1, 1996, the Comptroller
    General of the United States shall provide to the congressional defense
    committees a report on--

    [[Page 110 STAT. 474]]

                (1) existing funding mechanisms available to cover the costs
            associated with the Overseas Humanitarian, Disaster, and Civic
            Assistance activities through funds provided to the Department
            of State or the Agency for International Development, and
                (2) if such mechanisms do not exist, actions necessary to
            institute such mechanisms, including any changes in existing law
            or regulations.

    SEC. 1312. HUMANITARIAN ASSISTANCE.

        Section 2551 of title 10, United States Code, is amended--
                (1) by striking out subsections (b) and (c);
                (2) by redesignating subsection (d) as subsection (b);
                (3) by striking out subsection (e) and inserting in lieu
            thereof the following:

        ``(c) Status Reports.--(1) The Secretary of Defense shall submit to
    the congressional committees specified in subsection (f) an annual
    report on the provision of humanitarian assistance pursuant to this
    section for the prior fiscal year. The report shall be submitted each
    year at the time of the budget submission by the President for the next
    fiscal year.
        ``(2) Each report required by paragraph (1) shall cover all
    provisions of law that authorize appropriations for humanitarian
    assistance to be available from the Department of Defense for the
    purposes of this section.
        ``(3) Each report under this subsection shall set forth the
    following information regarding activities during the previous fiscal
    year:
                ``(A) The total amount of funds obligated for humanitarian
            relief under this section.
                ``(B) The number of scheduled and completed transportation
            missions for purposes of providing humanitarian assistance under
            this section.
                ``(C) A description of any transfer of excess nonlethal
            supplies of the Department of Defense made available for
            humanitarian relief purposes under section 2547 of this title.
            The description shall include the date of the transfer, the
            entity to whom the transfer is made, and the quantity of items
            transferred.'';
                (4) by redesignating subsection (f) as subsection (d) and in
            that subsection striking out ``the Committees on'' and all that
            follows through ``House of Representatives of the'' and
            inserting in lieu thereof ``the congressional committees
            specified in subsection (f) and the Committees on Appropriations
            of the Senate and House of Representatives of the'';
                (5) by redesignating subsection (g) as subsection (e); and
                (6) by adding at the end the following new subsection:

        ``(f) Congressional Committees.--The congressional committees
    referred to in subsections (c)(1) and (d) are the following:
                ``(1) The Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.
                ``(2) The Committee on National Security and the Committee
            on International Relations of the House of Representatives.''.

    SEC. 1313. LANDMINE CLEARANCE PROGRAM.

        (a) Inclusion in General Humanitarian Assistance Program.--
    Subsection (e) of section 401 of title 10, United States Code, is
    amended--

    [[Page 110 STAT. 475]]

                (1) by striking out ``means--'' and inserting in lieu
            thereof ``means:'';
                (2) by revising the first word in each of paragraphs (1)
            through (4) so that the first letter of such word is upper case;
                (3) by striking out the semicolon at the end of paragraphs
            (1) and (2) and inserting in lieu thereof a period;
                (4) by striking out ``; and'' at the end of paragraph (3)
            and inserting in lieu thereof a period; and
                (5) by adding at the end the following new paragraph:
                ``(5) Detection and clearance of landmines, including
            activities relating to the furnishing of education, training,
            and technical assistance with respect to the detection and
            clearance of landmines.''.

        (b) Limitation on Landmine Assistance by Members of Armed Forces.--
    Subsection (a) of such section is amended by adding at the end the
    following new paragraph:
        ``(4) The Secretary of Defense shall ensure that no member of the
    Armed Forces, while providing assistance under this section that is
    described in subsection (e)(5)--
                ``(A) engages in the physical detection, lifting, or
            destroying of landmines (unless the member does so for the
            concurrent purpose of supporting a United States military
            operation); or
                ``(B) provides such assistance as part of a military
            operation that does not involve the Armed Forces.''.

        (c) Repeal.--Section 1413 of the National Defense Authorization Act
    for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2913; 10 U.S.C. 401
    note) is repealed.

                Subtitle C--Arms Exports and Military Assistance

    SEC. 1321. DEFENSE EXPORT LOAN GUARANTEES.

        (a) Establishment of Program.--(1) Chapter 148 of title 10, United
    States Code, is amended by adding at the end the following new
    subchapter:

                 ``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

    ``Sec.
    ``2540. Establishment of loan guarantee program.
    ``2540a. Transferability.
    ``2540b. Limitations.
    ``2540c. Fees charged and collected.
    ``2540d. Definitions.

    ``Sec. 2540. Establishment of loan guarantee program

        ``(a) Establishment.--In order to meet the national security
    objectives in section 2501(a) of this title, the Secretary of Defense
    shall establish a program under which the Secretary may issue guarantees
    assuring a lender against losses of principal or interest, or both
    principal and interest, arising out of the financing of the sale or
    long-term lease of defense articles, defense services, or design and
    construction services to a country referred to in subsection (b).
        ``(b) Covered Countries.--The authority under subsection (a) applies
    with respect to the following countries:

    [[Page 110 STAT. 476]]

                ``(1) A member nation of the North Atlantic Treaty
            Organization (NATO).
                ``(2) A country designated as of March 31, 1995, as a major
            non-NATO ally pursuant to section 2350a(i)(3) of this title.
                ``(3) A country in Central Europe that, as determined by the
            Secretary of State--
                        ``(A) has changed its form of national government
                    from a nondemocratic form of government to a democratic
                    form of government since October 1, 1989; or
                        ``(B) is in the process of changing its form of
                    national government from a nondemocratic form of
                    government to a democratic form of government.
                ``(4) A noncommunist country that was a member nation of the
            Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.

        ``(c) Authority Subject to Provisions of Appropriations.--The
    Secretary may guarantee a loan under this subchapter only to such extent
    or in such amounts as may be provided in advance in appropriations Acts.

    ``Sec. 2540a. Transferability

        ``A guarantee issued under this subchapter shall be fully and freely
    transferable.

    ``Sec. 2540b. Limitations

        ``(a) Terms and Conditions of Loan Guarantees.--In issuing a
    guarantee under this subchapter for a medium-term or long-term loan, the
    Secretary may not offer terms and conditions more beneficial than those
    that would be provided to the recipient by the Export-Import Bank of the
    United States under similar circumstances in conjunction with the
    provision of guarantees for nondefense articles and services.
        ``(b) Losses Arising From Fraud or Misrepresentation.--No payment
    may be made under a guarantee issued under this subchapter for a loss
    arising out of fraud or misrepresentation for which the party seeking
    payment is responsible.
        ``(c) No Right of Acceleration.--The Secretary of Defense may not
    accelerate any guaranteed loan or increment, and may not pay any amount,
    in respect of a guarantee issued under this subchapter, other than in
    accordance with the original payment terms of the loan.

    ``Sec. 2540c. Fees charged and collected

        ``(a) Exposure Fees.--The Secretary of Defense shall charge a fee
    (known as `exposure fee') for each guarantee issued under this
    subchapter.
        ``(b) Amount of Exposure Fee.--To the extent that the cost of the
    loan guarantees under this subchapter is not otherwise provided for in
    appropriations Acts, the fee imposed under subsection (a) with respect
    to a loan guarantee shall be fixed in an amount that is sufficient to
    meet potential liabilities of the United States under the loan
    guarantee.
        ``(c) Payment Terms.--The fee under subsection (a) for each
    guarantee shall become due as the guarantee is issued. In the case of a
    guarantee for a loan which is disbursed incrementally, and for which the
    guarantee is correspondingly issued incrementally

    [[Page 110 STAT. 477]]

    as portions of the loan are disbursed, the fee shall be paid
    incrementally in proportion to the amount of the guarantee that is
    issued.
        ``(d) Administrative Fees.--The Secretary of Defense shall charge a
    fee for each guarantee issued under this subchapter to reflect the
    additional administrative costs of the Department of Defense that are
    directly attributable to the administration of the program under this
    subchapter. Such fees shall be credited to a special account in the
    Treasury. Amounts in the special account shall be available, to the
    extent and in amounts provided in appropriations Acts, for paying the
    costs of administrative expenses of the Department of Defense that are
    attributable to the loan guarantee program under this subchapter.

    ``Sec. 2540d. Definitions

        ``In this subchapter:
                ``(1) The terms `defense article', `defense services', and
            `design and construction services' have the meanings given those
            terms in section 47 of the Arms Export Control Act (22 U.S.C.
            2794).
                ``(2) The term `cost', with respect to a loan guarantee, has
            the meaning given that term in section 502 of the Congressional
            Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).''.

        (2) The table of subchapters at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``VI. Defense Export Loan Guarantees.............................2540''.

        (b) <<NOTE: President. 10 USC 2540 note.>> Report.--Not later than
    two years after the date of the enactment of this Act, the President
    shall submit to Congress a report on the loan guarantee program
    established pursuant to section 2540 of title 10, United States Code, as
    added by subsection (a). The report shall include--
                (1) an analysis of the costs and benefits of the loan
            guarantee program; and
                (2) any recommendations for modification of the program that
            the President considers appropriate, including--
                        (A) any recommended addition to the list of
                    countries for which a guarantee may be issued under the
                    program; and
                        (B) any proposed legislation necessary to authorize
                    a recommended modification.

        (c) First Year Costs.--The Secretary of Defense shall make
    available, from amounts appropriated to the Department of Defense for
    fiscal year 1996 for operations and maintenance, such amounts as may be
    necessary, not to exceed $500,000, for the expenses of the Department of
    Defense during fiscal year 1996 that are directly attributable to the
    administration of the defense export loan guarantee program under
    subchapter VI of chapter 148 of title 10, United States Code, as added
    by subsection (a).
        (d) Replenishment of Operations and Maintenance Accounts for First
    Year Costs.--The Secretary of Defense shall, using funds in the special
    account referred to in section 2540c(d) of title 10, United States Code
    (as added by subsection (b)), replenish operations and maintenance
    accounts for amounts expended from such accounts for expenses referred
    to in subsection (c).

    [[Page 110 STAT. 478]]

    SEC. 1322. <<NOTE: 50 USC app. 2404 note.>> NATIONAL SECURITY
                              IMPLICATIONS OF UNITED STATES EXPORT
                              CONTROL POLICY.

        (a) Findings.--Congress makes the following findings:
                (1) Export controls remain an important element of the
            national security policy of the United States.
                (2) It is in the national security interest that United
            States export control policy be effective in preventing the
            transfer, to potential adversaries or combatants of the United
            States, of technology that threatens the national security or
            defense of the United States.
                (3) It is in the national security interest that the United
            States monitor aggressively the export of militarily critical
            technology in order to prevent its diversion to potential
            adversaries or combatants of the United States.
                (4) The Department of Defense relies increasingly on
            commercial and dual-use technologies, products, and processes to
            support United States military capabilities and economic
            strength.
                (5) The maintenance of the military advantage of the United
            States depends on effective export controls on dual-use items
            and technologies that are critical to the military capabilities
            of the Armed Forces.

        (b)  Sense of Congress.--It is the sense of Congress that--
                (1) the Secretary of Defense should evaluate license
            applications for the export of militarily critical commodities
            the export of which is controlled for national security reasons
            if those commodities are to be exported to certain countries of
            concern;
                (2) the Secretary of Defense should identify the dual-use
            items and technologies that are critical to the military
            capabilities of the Armed Forces, including the military use
            made of such items and technologies;
                (3) upon identification by the Secretary of Defense of the
            dual-use items and technologies referred to in paragraph (2),
            the President should ensure effective export controls or use
            unilateral export controls on dual-use items and technologies
            that are critical to the military capabilities of the Armed
            Forces (regardless of the availability of such items or
            technologies overseas) with respect to the countries that--
                        (A) pose a threat to the national security interests
                    of the United States; and
                        (B) are not members in good standing of bilateral or
                    multilateral agreements to which the United States is a
                    party on the use of such items and technologies; and
                (4) the President, upon recommendation of the Secretary of
            Defense, should ensure effective controls on the re-export by
            other countries of dual-use items and technologies that are
            critical to the military capabilities of the Armed Forces.

        (c) <<NOTE: President.>> Annual Report.--(1) Not later than December
    1 of each year through 1999, the President shall submit to the
    committees specified in paragraph (4) a report on the effect of the
    export control policy of the United States on the national security
    interests of the United States.

        (2) The report shall include the following:
                (A) A list setting forth each country determined by the
            Secretary of Defense, the intelligence community, and other
            appropriate agencies to be a rogue nation or potential adversary
            or combatant of the United States.

    [[Page 110 STAT. 479]]

                (B) For each country so listed, a list of--
                        (i) the categories of items that the United States
                    currently prohibits for export to the country;
                        (ii) the categories of items that may be exported
                    from the United States with an individual license, and
                    in such cases, any licensing conditions normally
                    required and the policy grounds used for approvals and
                    denials; and
                        (iii) the categories of items that may be exported
                    under a general license designated ``G-DEST''.
                (C) For each category of items listed under subparagraph
            (B)--
                        (i) a statement whether a prohibition, control, or
                    licensing requirement on a category of items is imposed
                    pursuant to an international multilateral agreement or
                    is unilateral;
                        (ii) a statement whether a prohibition, control, or
                    licensing requirement on a category of items is imposed
                    by the other members of an international agreement or is
                    unilateral;
                        (iii) when the answer under either clause (i) or
                    clause (ii) is unilateral, a statement concerning the
                    efforts being made to ensure that the prohibition,
                    control, or licensing requirement is made multilateral;
                    and
                        (iv) a statement on what impact, if any, a
                    unilateral prohibition is having, or would have, on
                    preventing the rogue nation or potential adversary from
                    attaining the items in question for military purposes.
                (D) A description of United States policy on sharing
            satellite imagery that has military significance and a
            discussion of the criteria for determining the imagery that has
            that significance.
                (E) A description of the relationship between United States
            policy on the export of space launch vehicle technology and the
            Missile Technology Control Regime.
                (F) An assessment of United States efforts to support the
            inclusion of additional countries in the Missile Technology
            Control Regime.
                (G) An assessment of the ongoing efforts made by potential
            participant countries in the Missile Technology Control Regime
            to meet the guidelines established by the Missile Technology
            Control Regime.
                (H) A discussion of the history of the space launch vehicle
            programs of other countries, including a discussion of the
            military origins and purposes of such programs and the current
            level of military involvement in such programs.

        (3) The President shall submit the report in unclassified form, but
    may include a classified annex.
        (4) The committees referred to in paragraph (1) are the following:
                (A) The Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.
                (B) The Committee on National Security and the Committee on
            International Relations of the House of Representatives.

        (5) For purposes of this subsection, the term ``Missile Technology
    Control Regime'' means the policy statement announced on April 16, 1987,
    between the United States, the United Kingdom, the Federal Republic of
    Germany, France, Italy, Canada, and Japan to restrict sensitive missile-
    relevant transfers based on the Missile Technology Control Regime Annex,
    and any amendment thereto.

    [[Page 110 STAT. 480]]

    SEC. 1323. <<NOTE: 50 USC app. 2404 note.>> DEPARTMENT OF DEFENSE
                              REVIEW OF EXPORT LICENSES FOR CERTAIN
                              BIOLOGICAL PATHOGENS.

        (a) Department of Defense Review.--Any application to the Secretary
    of Commerce for a license for the export of a class 2, class 3, or class
    4 biological pathogen to a country identified to the Secretary under
    subsection (c) as a country that is known or suspected to have a
    biological weapons program shall be referred to the Secretary of Defense
    for review. <<NOTE: Notification.>> The Secretary of Defense shall
    notify the Secretary of Commerce within 15 days after receipt of an
    application under the preceding sentence whether the export of such
    biological pathogen pursuant to the license would be contrary to the
    national security interests of the United States.

        (b) Denial of License if Contrary to National Security Interest.--A
    license described in subsection (a) shall be denied by the Secretary of
    Commerce if it is determined that the export of such biological pathogen
    to that country would be contrary to the national security interests of
    the United States.
        (c) Identification of Countries Known or Suspected To Have a Program
    To Develop Offensive Biological Weapons.--(1) The Secretary of Defense
    shall determine, for the purposes of this section, those countries that
    are known or suspected to have a program to develop offensive biological
    weapons. Upon making such determination, the Secretary shall provide to
    the Secretary of Commerce a list of those countries.
        (2) <<NOTE: Notification.>> The Secretary of Defense shall update
    the list under paragraph (1) on a regular basis. Whenever a country is
    added to or deleted from such list, the Secretary shall notify the
    Secretary of Commerce.

        (3) Determination under this subsection of countries that are known
    or suspected to have a program to develop offensive biological weapons
    shall be made in consultation with the Secretary of State and the
    intelligence community.
        (d) Definition.--For purposes of this section, the term ``class 2,
    class 3, or class 4 biological pathogen'' means any biological pathogen
    that is characterized by the Centers for Disease Control as a class 2,
    class 3, or class 4 biological pathogen.
    SEC. 1324.  <<NOTE: 50 USC app. 2404 note.>> ANNUAL REPORTS ON
                              IMPROVING EXPORT CONTROL MECHANISMS AND
                              ON MILITARY ASSISTANCE.

        (a) Joint Reports by Secretaries of State and Commerce.--Not later
    than April 1 of each of 1996 and 1997, the Secretary of State and the
    Secretary of Commerce shall submit to Congress a joint report, prepared
    in consultation with the Secretary of Defense, relating to United States
    export-control mechanisms. Each such report shall set forth measures to
    be taken to strengthen United States export-control mechanisms,
    including--
                (1) steps being taken by each Secretary (A) to share on a
            regular basis the export licensing watchlist of that Secretary's
            department with the other Secretary, and (B) to incorporate the
            export licensing watchlist data received from the other
            Secretary into the watchlist of that Secretary's department;
                (2) steps being taken by each Secretary to incorporate into
            the watchlist of that Secretary's department similar data from
            systems maintained by the Department of Defense and the United
            States Customs Service; and

    [[Page 110 STAT. 481]]

                (3) a description of such further measures to be taken to
            strengthen United States export-control mechanisms as the
            Secretaries consider to be appropriate.

        (b) Reports by Inspectors General.--(1) Not later than April 1 of
    each of 1996 and 1997, the Inspector General of the Department of State
    and the Inspector General of the Department of Commerce shall each
    submit to Congress a report providing that official's evaluation of the
    effectiveness during the preceding year of the export licensing
    watchlist screening process of that official's department. The reports
    shall be submitted in both a classified and unclassified version.
        (2) Each report of an Inspector General under paragraph (1) shall
    (with respect to that official's department)--
                (A) set forth the number of export licenses granted to
            parties on the export licensing watchlist;
                (B) set forth the number of end-use checks performed with
            respect to export licenses granted to parties on the export
            licensing watchlist the previous year;
                (C) assess the screening process used in granting an export
            license when an applicant is on the export licensing watchlist;
            and
                (D) assess the extent to which the export licensing
            watchlist contains all relevant information and parties required
            by statute or regulation.

        (c) Annual Military Assistance Report.--The Foreign Assistance Act
    of 1961 is amended by inserting after section 654 (22 U.S.C. 2414) the
    following new section:
    ``SEC. 655. <<NOTE: 22 USC 2415.>> ANNUAL REPORT ON MILITARY
                              ASSISTANCE, MILITARY EXPORTS, AND
                              MILITARY IMPORTS.

        ``(a) <<NOTE: President.>> Report Required.--Not later than February
    1 of each of 1996 and 1997, the President shall transmit to Congress a
    report concerning military assistance authorized or furnished for the
    fiscal year ending the previous September 30.

        ``(b) Information Relating to Military Assistance and Military
    Exports.--Each such report shall show the aggregate dollar value and
    quantity of defense articles (including excess defense articles) and
    defense services, and of military education and training, authorized or
    furnished by the United States to each foreign country and international
    organization. The report shall specify, by category, whether those
    articles and services, and that education and training, were furnished
    by grant under chapter 2 or chapter 5 of part II of this Act or by sale
    under chapter 2 of the Arms Export Control Act or were authorized by
    commercial sale licensed under section 38 of the Arms Export Control
    Act.
        ``(c) Information Relating to Military Imports.--Each such report
    shall also include the total amount of military items of non-United
    States manufacture that were imported into the United States during the
    fiscal year covered by the report. The report shall show the country of
    origin, the type of item being imported, and the total amount of
    items.''.
    SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL OF
                              TRANSFER OF CERTAIN WEAPONS.

        Not later than 30 days after the date of the enactment of this Act,
    the Secretary of Defense and the Secretary of Energy shall submit to the
    committees of Congress referred to in subsection (c) of section 1154 of
    the National Defense Authorization Act for

    [[Page 110 STAT. 482]]

    Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1761) the report
    required under subsection (a) of that section. The Secretary of Defense
    and the Secretary of Energy shall include with the report an explanation
    of the failure of such Secretaries to submit the report in accordance
    with such subsection (a) and with all other previous requirements for
    the submittal of the report.

      Subtitle D--Burdensharing and Other Cooperative Activities Involving
                                 Allies and NATO

    SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

        (a) Authority To Manage Contributions in Local Currency, Etc.--
    Subsection (b) of section 2350j of title 10, United States Code, is
    amended to read as follows:

        ``(b) Accounting.--Contributions accepted under subsection (a) which
    are not related to security assistance may be accepted, managed, and
    expended in dollars or in the currency of the host nation (or, in the
    case of a contribution from a regional organization, in the currency in
    which the contribution was provided). Any such contribution shall be
    placed in an account established for such purpose and shall remain
    available until expended for the purposes specified in subsection (c).
    The Secretary of Defense shall establish a separate account for such
    purpose for each country or regional organization from which such
    contributions are accepted under subsection (a).''.
        (b) Conforming Amendment.--Subsection (d) of such section is amended
    by striking out ``credited under subsection (b) to an appropriation
    account of the Department of Defense'' and inserting in lieu thereof
    ``placed in an account established under subsection (b)''.
        (c) Technical Amendment.--Such section is further amended--
                (1) in subsection (e)(1), by striking out ``a report to the
            congressional defense committees'' and inserting in lieu thereof
            ``to the congressional committees specified in subsection (g) a
            report''; and
                (2) by adding at the end the following new subsection:

        ``(g) Congressional Committees.--The congressional committees
    referred to in subsection (e)(1) are--
                ``(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.''.
    SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF
                              RELOCATION WITHIN HOST NATION OF UNITED
                              STATES ARMED FORCES OVERSEAS.

        (a) In General.--(1) Subchapter II of chapter 138 of title 10,
    United States Code, is amended by adding at the end the following new
    section:

    [[Page 110 STAT. 483]]

    ``Sec. 2350k. Relocation within host nation of elements of armed
                          forces overseas

        ``(a) Authority To Accept Contributions.--The Secretary of Defense
    may accept contributions from any nation because of or in support of the
    relocation of elements of the armed forces from or to any location
    within that nation. Such contributions may be accepted in dollars or in
    the currency of the host nation. Any such contribution shall be placed
    in an account established for such purpose and shall remain available
    until expended for the purposes specified in subsection (b). The
    Secretary shall establish a separate account for such purpose for each
    country from which such contributions are accepted.
        ``(b) Use of Contributions.--The Secretary may use a contribution
    accepted under subsection (a) only for payment of costs incurred in
    connection with the relocation concerning which the contribution was
    made. Those costs include the following:
                ``(1) Design and construction services, including
            development and review of statements of work, master plans and
            designs, acquisition of construction, and supervision and
            administration of contracts relating thereto.
                ``(2) Transportation and movement services, including
            packing, unpacking, storage, and transportation.
                ``(3) Communications services, including installation and
            deinstallation of communications equipment, transmission of
            messages and data, and rental of transmission capability.
                ``(4) Supply and administration, including acquisition of
            expendable office supplies, rental of office space, budgeting
            and accounting services, auditing services, secretarial
            services, and translation services.
                ``(5) Personnel costs, including salary, allowances and
            overhead of employees whether full-time or part-time, temporary
            or permanent (except for military personnel), and travel and
            temporary duty costs.
                ``(6) All other clearly identifiable expenses directly
            related to relocation.

        ``(c) Method of Contribution.--Contributions may be accepted in any
    of the following forms:
                ``(1) Irrevocable letter of credit issued by a financial
            institution acceptable to the Treasurer of the United States.
                ``(2) Drawing rights on a commercial bank account
            established and funded by the host nation, which account is
            blocked such that funds deposited cannot be withdrawn except by
            or with the approval of the United States.
                ``(3) Cash, which shall be deposited in a separate trust
            fund in the United States Treasury pending expenditure and which
            shall accrue interest in accordance with section 9702 of title
            31.

        ``(d) Annual Report to Congress.--Not later than 30 days after the
    end of each fiscal year, the Secretary shall submit to Congress a report
    specifying--
                ``(1) the amount of the contributions accepted by the
            Secretary during the preceding fiscal year under subsection (a)
            and the purposes for which the contributions were made; and
                ``(2) the amount of the contributions expended by the
            Secretary during the preceding fiscal year and the purposes for
            which the contributions were expended.''.

    [[Page 110 STAT. 484]]

        (2) The table of sections at the beginning of subchapter II of
    chapter 138 of such title is amended by adding at the end the following
    new item:

    ``2350k. Relocation within host nation of elements of armed forces
               overseas.''.

        (b) <<NOTE: 10 USC 2350k note.>> Effective Date.--Section 2350k of
    title 10, United States Code, as added by subsection (a), shall take
    effect on the date of the enactment of this Act and shall apply to
    contributions for relocation of elements of the Armed Forces in or to
    any nation received on or after such date.
    SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED
                              STATES INSTALLATIONS IN EUROPE.

        Section 1304(a) of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2890) is amended--
                (1) by inserting ``(1)'' after ``so that''; and
                (2) by inserting before the period at the end the following:
            ``, and (2) by September 30, 1997, those nations have assumed
            42.5 percent of such costs''.
    SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END STRENGTH
                              LIMITATION.

        (a) Exclusion of Members Performing Duties Under Military-To-
    Military Contact Program.--Paragraph (3) of section 1002(c) of the
    Department of Defense Authorization Act, 1985 (22 U.S.C. 1928 note) is
    amended to read as follows:
        ``(3) For purposes of this subsection, the following members of the
    Armed Forces are excluded in calculating the end strength level of
    members of the Armed Forces of the United States assigned to permanent
    duty ashore in European member nations of NATO:
                ``(A) Members assigned to permanent duty ashore in Iceland,
            Greenland, and the Azores.
                ``(B) Members performing duties in Europe for more than 179
            days under a military-to-military contact program under section
            168 of title 10, United States Code.''.
    SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS WITH
                              NATO ORGANIZATIONS.

        Section 2350b(e) of title 10, United States Code, is amended--
                (1) in paragraph (1), by inserting ``or a NATO
            organization'' after ``a participant (other than the United
            States)''; and
                (2) in paragraph (2), by striking out ``a cooperative
            project'' and inserting in lieu thereof ``such a cooperative
            project or a NATO organization''.
    SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF HAIFA,
                              ISRAEL.

        (a) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense should promptly seek to undertake such actions as
    are necessary--
                (1) to ensure that suitable port services are available to
            the Navy at the Port of Haifa, Israel; and
                (2) to ensure the availability to the Navy of suitable
            services at that port in light of the continuing increase in
            commercial activities at the port.

        (b) Report.--Not later than 30 days after the date of the enactment
    of this Act, the Secretary of the Navy shall submit to Congress a report
    on the availablity of port services for the

    [[Page 110 STAT. 485]]

    Navy in the eastern Mediterranean Sea region. The report shall specify--
                (1) the services required by the Navy when calling at the
            port of Haifa, Israel; and
                (2) the availability of those services at ports elsewhere in
            the region.

                            Subtitle E--Other Matters

    SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST
                              COUNTRIES.

        (a) Prohibition.--Subchapter I of chapter 134 of title 10, United
    States Code, is amended by adding at the end the following:
    ``Sec. 2249a. Prohibition on providing financial assistance to
                          terrorist countries

        ``(a) Prohibition.--Funds available to the Department of Defense may
    not be obligated or expended to provide financial assistance to--
                ``(1) any country with respect to which the Secretary of
            State has made a determination under section 6(j)(1)(A) of the
            Export Administration Act of 1979 (50 App. 2405(j));
                ``(2) any country identified in the latest report submitted
            to Congress under section 140 of the Foreign Relations
            Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f),
            as providing significant support for international terrorism; or
                ``(3) any other country that, as determined by the
            President--
                        ``(A) grants sanctuary from prosecution to any
                    individual or group that has committed an act of
                    international terrorism; or
                        ``(B) otherwise supports international terrorism.

        ``(b) Waiver.--(1) The President may waive the application of
    subsection (a) to a country if the President determines--
                ``(A) that it is in the national security interests of the
            United States to do so; or
                ``(B) that the waiver should be granted for humanitarian
            reasons.

        ``(2) <<NOTE: President.>> The President shall--
                ``(A) <<NOTE: Notification.>> notify the Committee on Armed
            Services and the Committee on Foreign Relations of the Senate
            and the Committee on National Security and the Committee on
            International Relations of the House of Representatives at least
            15 days before the waiver takes effect; and
                ``(B) <<NOTE: Federal Register, publication.>> publish a
            notice of the waiver in the Federal Register.

        ``(c) Definition.--In this section, the term `international
    terrorism' has the meaning given that term in section 140(d)
    of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989
    (22 U.S.C. 2656f(d)).''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter I of such chapter is amended by adding at the end the
    following:

    ``2249a. Prohibition on providing financial assistance to terrorist
               countries.''.

    [[Page 110 STAT. 486]]

    SEC. 1342. <<NOTE: 18 USC 3181 note.>> JUDICIAL ASSISTANCE TO THE
                              INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA
                              AND TO THE INTERNATIONAL TRIBUNAL FOR
                              RWANDA.

        (a) Surrender of Persons.--
                (1) Application of united states extradition laws.--Except
            as provided in paragraphs (2) and (3), the provisions of chapter
            209 of title 18, United States Code, relating to the extradition
            of persons to a foreign country pursuant to a treaty or
            convention for extradition between the United States and a
            foreign government, shall apply in the same manner and extent to
            the surrender of persons, including United States citizens, to--
                        (A) the International Tribunal for Yugoslavia,
                    pursuant to the Agreement Between the United States and
                    the International Tribunal for Yugoslavia; and
                        (B) the International Tribunal for Rwanda, pursuant
                    to the Agreement Between the United States and the
                    International Tribunal for Rwanda.
                (2) Evidence on hearings.--For purposes of applying section
            3190 of title 18, United States Code, in accordance with
            paragraph (1), the certification referred to in that section may
            be made by the principal diplomatic or consular officer of the
            United States resident in such foreign countries where the
            International Tribunal for Yugoslavia or the International
            Tribunal for Rwanda may be permanently or temporarily situated.
                (3) Payment of fees and costs.--(A) The provisions of the
            Agreement Between the United States and the International
            Tribunal for Yugoslavia and of the Agreement Between the United
            States and the International Tribunal for Rwanda shall apply in
            lieu of the provisions of section 3195 of title 18, United
            States Code, with respect to the payment of expenses arising
            from the surrender by the United States of a person to the
            International Tribunal for Yugoslavia or the International
            Tribunal for Rwanda, respectively, or from any proceedings in
            the United States relating to such surrender.
                (B) The authority of subparagraph (A) may be exercised only
            to the extent and in the amounts provided in advance in
            appropriations Acts.
                (4) Nonapplicability of the federal rules.--The Federal
            Rules of Evidence and the Federal Rules of Criminal Procedure do
            not apply to proceedings for the surrender of persons to the
            International Tribunal for Yugoslavia or the International
            Tribunal for Rwanda.

        (b) Assistance to Foreign and International Tribunals and to
    Litigants Before Such Tribunals.--Section 1782(a) of title 28, United
    States Code, is amended by inserting in the first sentence after
    ``foreign or international tribunal'' the following: ``, including
    criminal investigations conducted before formal accusation''.
        (c) Definitions.--For purposes of this section:
                (1) International tribunal for yugoslavia.--The term
            ``International Tribunal for Yugoslavia'' means the
            International Tribunal for the Prosecution of Persons
            Responsible for Serious Violations of International Humanitarian
            Law in the Territory of the Former Yugoslavia, as established by

    [[Page 110 STAT. 487]]

            United Nations Security Council Resolution 827 of May 25, 1993.
                (2) International tribunal for rwanda.--The term
            ``International Tribunal for Rwanda'' means the International
            Tribunal for the Prosecution of Persons Responsible for Genocide
            and Other Serious Violations of International Humanitarian Law
            Committed in the Territory of Rwanda and Rwandan Citizens
            Responsible for Genocide and Other Such Violations Committed in
            the Territory of Neighboring States, as established by United
            Nations Security Council Resolution 955 of November 8, 1994.
                (3) Agreement between the united states and the
            international tribunal for yugoslavia.--The term ``Agreement
            Between the United States and the International Tribunal for
            Yugoslavia'' means the Agreement on Surrender of Persons Between
            the Government of the United States and the International
            Tribunal for the Prosecution of Persons Responsible for Serious
            Violations of International Law in the Territory of the Former
            Yugoslavia, signed at The Hague, October 5, 1994.
                (4) Agreement between the united states and the
            international tribunal for rwanda.--The term ``Agreement between
            the United States and the International Tribunal for Rwanda''
            means the Agreement on Surrender of Persons Between the
            Government of the United States and the International Tribunal
            for the Prosecution of Persons Responsible for Genocide and
            Other Serious Violations of International Humanitarian Law
            Committed in the Territory of Rwanda and Rwandan Citizens
            Responsible for Genocide and Other Such Violations Committed in
            the Territory of Neighboring States, signed at The Hague,
            January 24, 1995.
    SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-PEOPLE'S
                              REPUBLIC OF CHINA JOINT DEFENSE
                              CONVERSION COMMISSION.

        (a) Reports Required.--The Secretary of Defense shall submit to
    Congress a semiannual report on the United States-People's Republic of
    China Joint Defense Conversion Commission. Each such report shall
    include the following:
                (1) A description of the extent to which the activities
            conducted in, through, or as a result of the Commission could
            have directly or indirectly assisted, or may directly or
            indirectly assist, the military modernization efforts of the
            People's Republic of China.
                (2) A discussion of the activities and operations of the
            Commission, including--
                        (A) United States funding;
                        (B) a listing of participating United States
                    officials;
                        (C) specification of meeting dates and locations
                    (prospective and retrospective);
                        (D) summary of discussions; and
                        (E) copies of any agreements reached.
                (3) A discussion of the relationship between the ``defense
            conversion'' activities of the People's Republic of China and
            its defense modernization efforts.
                (4) A discussion of the extent to which United States
            business activities pursued, or proposed to be pursued, under
            the

    [[Page 110 STAT. 488]]

            imprimatur of the Commission, or the importation of western
            technology in general, contributes to the modernization of
            China's military industrial base, including any steps taken by
            the United States or by United States commercial entities to
            safeguard the technology or intellectual property rights
            associated with any materials or information transferred.
                (5) An assessment of the benefits derived by the United
            States from its participation in the Commission, including
            whether or to what extent United States participation in the
            Commission has resulted or will result in the following:
                        (A) Increased transparency in the current and
                    projected military budget and doctrine of the People's
                    Republic of China.
                        (B) Improved behavior and cooperation by the
                    People's Republic of China in the areas of missile and
                    nuclear proliferation.
                        (C) Increased transparency in the plans of the
                    People's Republic of China's for nuclear and missile
                    force modernization and testing.
                (6) Efforts undertaken by the Secretary of Defense to--
                        (A) establish a list of enterprises controlled by
                    the People's Liberation Army, including those which have
                    been successfully converted to produce products solely
                    for civilian use; and
                        (B) provide estimates of the total revenues of those
                    enterprises.
                (7) A description of current or proposed mechanisms for
            improving the ability of the United States to track the flow of
            revenues from the enterprises specified on the list established
            under paragraph (6)(A).

        (b) Submittal of Reports.--A report shall be submitted under
    subsection (a) not later than August 1 of each year with respect to the
    first six months of that year and shall be submitted not later than
    February 1 of each year with respect to the last six months of the
    preceding year. The first report under such subsection shall be
    submitted not less than 60 days after the date of the enactment of this
    Act and shall apply with respect to the six-month period preceding the
    date of the enactment of this Act.
        (c) Final Report Upon Termination of Commission.--Upon the
    termination of the United States-People's Republic of China Joint
    Defense Conversion Commission, the Secretary of Defense shall submit a
    final report under this section covering the period from the end of the
    period covered by the last such report through the termination of the
    Commission, and subsection (a) shall cease to apply after the submission
    of such report.

                         TITLE XIV--ARMS CONTROL MATTERS

    SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF
                              LANDMINE EXPORT MORATORIUM.

        Section 1423(d) of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 107 Stat. 1832) is amended--
                (1) by redesignating paragraphs (1), (2), and (3) as
            subparagraphs (A), (B), and (C), respectively;
                (2) in subparagraph (C), as so redesignated, by striking out
            ``by remote control or'';

    [[Page 110 STAT. 489]]

                (3) by inserting ``(1)'' before ``For purposes of''; and
                (4) by adding at the end the following new paragraph:

        ``(2) The term does not include command detonated antipersonnel land
    mines (such as the M18A1 `Claymore' mine).''.
    SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES OF
                              ANTIPERSONNEL LANDMINES.

        Not later than April 30 of each of 1996, 1997, and 1998, the
    Chairman of the Joint Chiefs of Staff shall submit to the congressional
    defense committees a report on the projected effects of a moratorium on
    the defensive use of antipersonnel mines and antitank mines by the Armed
    Forces. The report shall include a discussion of the following matters:
                (1) The extent to which current doctrine and practices of
            the Armed Forces on the defensive use of antipersonnel mines and
            antitank mines adhere to applicable international law.
                (2) The effects that a moratorium would have on the
            defensive use of the current United States inventory of remotely
            delivered, self-destructing antitank systems, antipersonnel
            mines, and antitank mines.
                (3) The reliability of the self-destructing antipersonnel
            mines and self-destructing antitank mines of the United States.
                (4) The cost of clearing the antipersonnel minefields
            currently protecting Naval Station Guantanamo Bay, Cuba, and
            other United States installations.
                (5) The cost of replacing antipersonnel mines in such
            minefields with substitute systems such as the Claymore mine,
            and the level of protection that would be afforded by use of
            such a substitute.
                (6) The extent to which the defensive use of antipersonnel
            mines and antitank mines by the Armed Forces is a source of
            civilian casualties around the world, and the extent to which
            the United States, and the Department of Defense particularly,
            contributes to alleviating the illegal and indiscriminate use of
            such munitions.
                (7) The extent to which the threat to the security of United
            States forces during operations other than war and combat
            operations would increase as a result of such a moratorium.
    SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION
                              AUTHORITIES.

        (a) One-Year Extension of Program.--Section 1505 of the Weapons of
    Mass Destruction Control Act of 1992 (title XV of Public Law 102-484; 22
    U.S.C. 5859a) is amended--
                (1) in subsection (a), by striking out ``during fiscal years
            1994 and 1995'';
                (2) in subsection (e)(1), by striking out ``fiscal years
            1994 and 1995'' and inserting in lieu thereof ``a fiscal year
            during which the authority of the Secretary of Defense to
            provide assistance under this section is in effect''; and
                (3) by adding at the end the following new subsection:

        ``(f) Termination of Authority.--The authority of the Secretary of
    Defense to provide assistance under this section terminates at the close
    of fiscal year 1996.''.
        (b) Program Authorities.--(1) Subsections (b)(2) and (d)(3) of such
    section are amended by striking out ``the On-Site Inspection Agency''
    and inserting in lieu thereof ``the Department of Defense''.

    [[Page 110 STAT. 490]]

        (2) Subsection (c)(3) of such section is amended by striking out
    ``will be counted'' and all that follows and inserting in lieu thereof
    ``will be counted as discretionary spending in the national defense
    budget function (function 050).''.
        (c) Amount of Assistance.--Subsection (d) of such section is
    amended--
                (1) in paragraph (1)--
                        (A) by striking out ``for fiscal year 1994'' the
                    first place it appears and all that follows through the
                    period at the end of the second sentence and inserting
                    in lieu thereof ``for any fiscal year shall be derived
                    from amounts made available to the Department of Defense
                    for that fiscal year.''; and
                        (B) by striking out ``referred to in this
                    paragraph''; and
                (2) in paragraph (3)--
                        (A) by striking out ``may not exceed'' and all that
                    follows through ``1995''; and
                        (B) by inserting before the period at the end the
                    following: ``, may not exceed $25,000,000 for fiscal
                    year 1994, $20,000,000 for fiscal year 1995, or
                    $15,000,000 for fiscal year 1996''.
    SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC
                              NUCLEAR DELIVERY SYSTEMS.

        (a) Sense of Congress.--It is the sense of Congress that, unless and
    until the START II Treaty enters into force, the Secretary of Defense
    should not take any action to retire or dismantle, or to prepare to
    retire or dismantle, any of the following strategic nuclear delivery
    systems:
                (1) B-52H bomber aircraft.
                (2) Trident ballistic missile submarines.
                (3) Minuteman III intercontinental ballistic missiles.
                (4) Peacekeeper intercontinental ballistic missiles.

        (b) Limitation on Use of Funds.--Funds available to the Department
    of Defense may not be obligated or expended during fiscal year 1996 for
    retiring or dismantling, or for preparing to retire or dismantle, any of
    the strategic nuclear delivery systems specified in subsection (a).
    SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS CONCERNING
                              TREATY VIOLATIONS.

        (a) Reaffirmation of Prior Findings Concerning the Krasnoyarsk
    Radar.--Congress, noting its previous findings with respect to the large
    phased-array radar of the Soviet Union known as the ``Krasnoyarsk
    radar'' stated in paragraphs (1) through (4) of section 902(a) of the
    National Defense Authorization Act for Fiscal Years 1988 and 1989
    (Public Law 100-180; 101 Stat. 1135) (and reaffirmed in section 1006(a)
    of the National Defense Authorization Act for Fiscal Years 1990 and 1991
    (Public Law 101-189; 103 Stat. 1543)), hereby reaffirms those findings
    as follows:
                (1) The 1972 Anti-Ballistic Missile Treaty prohibits each
            party from deploying ballistic missile early warning radars
            except at locations along the periphery of its national
            territory and oriented outward.
                (2) The 1972 Anti-Ballistic Missile Treaty prohibits each
            party from deploying an ABM system to defend its national

    [[Page 110 STAT. 491]]

            territory and from providing a base for any such nationwide
            defense.
                (3) Large phased-array radars were recognized during
            negotiation of the Anti-Ballistic Missile Treaty as the critical
            long lead-time element of a nationwide defense against ballistic
            missiles.
                (4) In 1983 the United States discovered the construction,
            in the interior of the Soviet Union near the town of
            Krasnoyarsk, of a large phased-array radar that has subsequently
            been judged to be for ballistic missile early warning and
            tracking.

        (b) Further Reference to 1987 Congressional Statements.--Congress
    further notes that in section 902 of the National Defense Authorization
    Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 1135)
    Congress also--
                (1) noted that the President had certified that the
            Krasnoyarsk radar was an unequivocal violation of the 1972 Anti-
            Ballistic Missile Treaty; and
                (2) stated it to be the sense of the Congress that the
            Soviet Union was in violation of its legal obligation under that
            treaty.

        (c) Further Reference to 1989 Congressional Statements.--Congress
    further notes that in section 1006(b) of the National Defense
    Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189;
    103 Stat. 1543) Congress also--
                (1) again noted that in 1987 the President declared that
            radar to be a clear violation of the 1972 Anti-Ballistic Missile
            Treaty and noted that on October 23, 1989, the Foreign Minister
            of the Soviet Union conceded that the Krasnoyarsk radar is a
            violation of the 1972 Anti-Ballistic Missile Treaty; and
                (2) stated it to be the sense of the Congress that the
            Soviet Union should dismantle the Krasnoyarsk radar
            expeditiously and without conditions and that until such radar
            was completely dismantled it would remain a clear violation of
            the 1972 Anti-Ballistic Missile Treaty.

        (d) <<NOTE: Y.V. Votintsev.>>  Additional Findings.--Congress also
    finds, with respect to the Krasnoyarsk radar, that retired Soviet
    General Y.V. Votintsev, Director of the Soviet National Air Defense
    Forces from 1967 to 1985, has publicly stated--
                (1) that he was directed by the Chief of the Soviet General
            staff to locate the large phased-array radar at Krasnoyarsk
            despite the recognition by Soviet authorities that the location
            of such a radar at that location would be a clear violation of
            the 1972 Anti-Ballistic Missile Treaty; and
                (2) <<NOTE: D.F. Ustinov.>> that Marshal D.F. Ustinov,
            Soviet Minister of Defense, threatened to relieve from duty any
            Soviet officer who continued to object to the construction of a
            large-phased array radar at Krasnoyarsk.

        (e) Sense of Congress Concerning Soviet Treaty Violations.--It is
    the sense of Congress that the government of the Soviet Union
    intentionally violated its legal obligations under the 1972 Anti-
    Ballistic Missile Treaty in order to advance its national security
    interests.
        (f) Sense of Congress Concerning Compliance by Russia With Arms
    Control Obligations.--In light of subsections (a) through (e), it is the
    sense of Congress that the United States should remain vigilant in
    ensuring compliance by Russia with its

    [[Page 110 STAT. 492]]

    arms control obligations and should, when pursuing future arms control
    agreements with Russia, bear in mind violations of arms control
    obligations by the Soviet Union.
    SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL WEAPONS
                              CONVENTION AND START II TREATY.

        (a) Findings.--Congress makes the following findings:
                (1) Proliferation of chemical or nuclear weapons materials
            poses a danger to United States national security, and the
            threat or use of such materials by terrorists would directly
            threaten United States citizens at home and abroad.
                (2) Events such as the March 1995 terrorist release of a
            chemical nerve agent in the Tokyo subway, the threatened use of
            chemical weapons during the 1991 Persian
    Gulf War, and the widespread use of chemical weapons during the Iran-
    Iraq War of the 1980's are all potent reminders of the menace posed by
    chemical weapons, of the fact that the threat of chemical weapons is not
    sufficiently addressed, and of the need to outlaw the development,
    production, and possession of chemical weapons.
                (3) <<NOTE: George Bush.>> The Chemical Weapons Convention
            negotiated and signed by President Bush would make it more
            difficult for would-be proliferators, including terrorists, to
            acquire or use chemical weapons, if ratified and fully
            implemented, as signed, by all signatories.
                (4) <<NOTE: John Shalikashvili.>> United States military
            authorities, including Chairman of the Joint Chiefs of Staff
            General John Shalikashvili, have stated that United States
            military forces will deter and respond to chemical weapons
            threats with a robust chemical defense and an overwhelming
            superior conventional response, as demonstrated in the Persian
            Gulf War, and have testified in support of the ratification of
            the Chemical Weapons Convention.
                (5) The United States intelligence community has testified
            that the Convention will provide new and important sources of
            information, through regular data exchanges and routine and
            challenge inspections, to improve the ability of the United
            States to assess the chemical weapons status in countries of
            concern.
                (6) The Convention has not entered into force for lack of
            the requisite number of ratifications.
                (7) Russia has signed the Convention, but has not yet
            ratified it.
                (8) There have been reports by Russian sources of continued
            Russian production and testing of chemical weapons, including a
            statement by a spokesman of the Russian Ministry of Defense on
            December 5, 1994, that ``We cannot say that all chemical weapons
            production and testing has stopped altogether.''.
                (9) The Convention will impose a legally binding obligation
            on Russia and other nations that possess chemical weapons and
            that ratify the Convention to cease offensive chemical weapons
            activities and to destroy their chemical weapons stockpiles and
            production facilities.
                (10) The United States must be prepared to exercise fully
            its rights under the Convention, including the request of
            challenge inspections when warranted, and to exercise leadership
            in pursuing punitive measures against violators of the
            Convention, when warranted.

    [[Page 110 STAT. 493]]

                (11) The United States should strongly encourage full
            implementation at the earliest possible date of the terms and
            conditions of the United States-Russia bilateral chemical
            weapons destruction agreement signed in 1990.
                (12) The START II Treaty negotiated and signed by President
            Bush would help reduce the danger of potential proliferators,
            including terrorists, acquiring nuclear warheads and materials,
            and would contribute to United States-Russian bilateral efforts
            to secure and dismantle nuclear warheads, if ratified and fully
            implemented as signed by both parties.
                (13) It is in the national security interest of the United
            States to take effective steps to make it more difficult for
            proliferators or would-be terrorists to obtain chemical or
            nuclear materials for use in weapons.
                (14) The President has urged prompt Senate action on, and
            advice and consent to ratification of, the START II Treaty and
            the Chemical Weapons Convention.
                (15) The Chairman of the Joint Chiefs of Staff has testified
            to Congress that ratification and full implementation of both
            treaties by all parties is in the United States national
            interest and has strongly urged prompt Senate advice and consent
            to their ratification.

        (b) Sense of Congress.--It is the sense of Congress that the United
    States, Russia, and all other parties to the START II Treaty and the
    Chemical Weapons Convention should promptly ratify and fully implement,
    as negotiated, both treaties.

    SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

        (a) Funding.--Of the amounts appropriated pursuant to authorizations
    in sections 102, 103, 104, 201, and 301, the Secretary of Defense may
    use an amount not to exceed $239,941,000 for implementing arms control
    agreements to which the United States is a party.
        (b) Limitation.--(1) Funds made available pursuant to subsection (a)
    for the costs of implementing an arms control agreement may not (except
    as provided in paragraph (2)) be used to reimburse expenses incurred by
    any other party to the agreement for which (without regard to any
    executive agreement or any policy not part of an arms control
    agreement)--
                (A) the other party is responsible under the terms of the
            arms control agreement; and
                (B) the United States has no responsibility under the
            agreement.

        (2) The limitation in paragraph (1) does not apply to a use of funds
    to carry out an arms control expenses reimbursement policy of the United
    States described in subsection (c).
        (c) Covered Arms Control Expenses Reimbursement Policies.--
    Subsection (b)(2) applies to a policy of the United States to reimburse
    expenses incurred by another party to an arms control agreement if--
                (1) the policy does not modify any obligation imposed by the
            arms control agreement;
                (2) the President--
                        (A) issued or approved the policy before the date of
                    the enactment of this Act; or
                        (B) entered into an agreement on the policy with the
                    government of another country or approved an agreement

    [[Page 110 STAT. 494]]

                    on the policy entered into by an official of the United
                    States and the government of another country; and
                (3) the President has notified the designated congressional
            committees of the policy or the policy agreement (as the case
            may be), in writing, at least 30 days before the date on which
            the President issued or approved the policy or has entered into
            or approved the policy agreement.

        (d) Definitions.--For the purposes of this section:
                (1) The term ``arms control agreement'' means an arms
            control treaty or other form of international arms control
            agreement.
                (2) The term ``executive agreement'' means an international
            agreement entered into by the President that is not authorized
            by law or entered into as a Treaty to which the Senate has given
            its advice and consent to ratification.
                (3) The term ``designated congressional committees'' means
            the following:
                        (A) The Committee on Foreign Relations, the
                    Committee on Armed Services, and the Committee on
                    Appropriations of the Senate.
                        (B) The Committee on International Relations, the
                    Committee on National Security, and the Committee on
                    Appropriations of the House of Representatives.

    SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

        (a) Sanctions Against Transfers of Persons.--Section 1604(a) of the
    Iran-Iraq Arms Non-Proliferation Act of 1992 (title XVI of Public Law
    102-484; 50 U.S.C. 1701 note) is amended by inserting ``to acquire
    chemical, biological, or nuclear weapons or'' before ``to acquire''.
        (b) Sanctions Against Transfers of Foreign Countries.--Section
    1605(a) of such Act <<NOTE: 50 USC 1701 note.>>  is amended by inserting
    ``to acquire chemical, biological, or nuclear weapons or'' before ``to
    acquire''.

        (c) Clarification of United States Assistance.--Subparagraph (A) of
    section 1608(7) of such Act <<NOTE: 50 USC 1701 note.>>  is amended to
    read as follows:
                        ``(A) any assistance under the Foreign Assistance
                    Act of 1961 (22 U.S.C. 2151 et seq.), other than urgent
                    humanitarian assistance or medicine;''.

        (d) Notification of Certain Waivers Under MTCR Procedures.--Section
    73(e)(2) of the Arms Export Control Act (22 U.S.C. 2797b(e)(2)) is
    amended--
                (1) by striking out ``the Congress'' and inserting in lieu
            thereof ``the Committee on Armed Services and the Committee on
            Foreign Relations of the Senate and the Committee on National
            Security and the Committee on International Relations of the
            House of Representatives''; and
                (2) by striking out ``20 working days'' and inserting in
            lieu thereof ``45 working days''.

    [[Page 110 STAT. 495]]

                   TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

    SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL
                              MANAGEMENT ACT.

        (a) Public Law 103-337.--The Reserve Officer Personnel Management
    Act (title XVI of the National Defense Authorization Act for Fiscal Year
    1995 (Public Law 103-337)) is amended as follows:
                (1) Section 1624 (108 Stat. 2961) <<NOTE: 10 USC 620.>>  is
            amended--
                        (A) by striking out ``641'' and all that follows
                    through ``(2)'' and inserting in lieu thereof ``620 is
                    amended''; and
                        (B) by redesignating as subsection (d) the
                    subsection added by the amendment made by that section.
                (2) Section 1625 (108 Stat. 2962) <<NOTE: 10 USC 12320.>>
            is amended by striking out ``Section 689'' and inserting in lieu
            thereof ``Section 12320''.
                (3) Section 1626(1) (108 Stat. 2962) <<NOTE: 10 USC 741.>>
            is amended by striking out ``(W-5)'' in the second quoted matter
            therein and inserting in lieu thereof ``, W-5,''.
                (4) Section 1627 (108 Stat. 2962) <<NOTE: 10 USC 12645.>>
            is amended by striking out ``Section 1005(b)'' and inserting in
            lieu thereof ``Section 12645(b)''.
                (5) Section 1631 (108 Stat. 2964) is amended--
                        (A) <<NOTE: 10 USC 12102.>>  in subsection (a), by
                    striking out ``Section 510'' and inserting in lieu
                    thereof ``Section 12102''; and
                        (B) <<NOTE: 10 USC 12201.>>  in subsection (b), by
                    striking out ``Section 591'' and inserting in lieu
                    thereof ``Section 12201''.
                (6) Section 1632 (108 Stat. 2965) <<NOTE: 10 USC 12203.>>
            is amended by striking out ``Section 593(a)'' and inserting in
            lieu thereof ``Section 12203(a)''.
                (7) Section 1635(a) (108 Stat. 2968) <<NOTE: 10 USC 3853
            note.>>  is amended by striking out ``section 1291'' and
            inserting in lieu thereof ``section 1691(b)''.
                (8) Section 1671 (108 Stat. 3013) is amended--
                        (A) in subsection (b)(3), by striking out ``512, and
                    517'' and inserting in lieu thereof ``and 512''; and
                        (B) <<NOTE: 10 USC 113.>>  in subsection (c)(2), by
                    striking out the comma after ``861'' in the first quoted
                    matter therein.
                (9) Section 1684(b) (108 Stat. 3024) <<NOTE: 10 USC 14310
            note.>>  is amended by striking out ``section 14110(d)'' and
            inserting in lieu thereof ``section 14111(c)''.

        (b) Subtitle E of Title 10.--Subtitle E of title 10, United States
    Code, is amended as follows:
                (1) The tables of chapters preceding part I and at the
            beginning of part IV are amended by striking out ``Repayments''
            in the item relating to chapter 1609 and inserting in lieu
            thereof ``Repayment Programs''.
                (2)(A) The heading for section 10103 is amended to read as
            follows:

    ``Sec. 10103. Basic policy for order into Federal service''.

                (B) The item relating to section 10103 in the table of
            sections at the beginning of chapter 1003 is amended to read as
            follows:

    ``10103. Basic policy for order into Federal service.''.

    [[Page 110 STAT. 496]]

                (3) The table of sections at the beginning of chapter 1005
            is amended by striking out the third word in the item relating
            to section 10142.
                (4) The table of sections at the beginning of chapter 1007
            is amended--
                        (A) by striking out the third word in the item
                    relating to section 10205; and
                        (B) by capitalizing the initial letter of the sixth
                    word in the item relating to section 10211.
                (5) The table of sections at the beginning of chapter 1011
            is amended by inserting ``Sec.'' at the top of the column of
            section numbers.
                (6) Section 10507 is amended--
                        (A) by striking out ``section 124402(b)'' and
                    inserting in lieu thereof ``section 12402(b)''; and
                        (B) by striking out ``Air Forces'' and inserting in
                    lieu thereof ``Air Force''.
                (7)(A) Section 10508 is repealed.
                (B) The table of sections at the beginning of chapter 1011
            is amended by striking out the item relating to section 10508.
                (8) Section 10542 is amended by striking out subsection (d).
                (9) Section 12004(a) is amended by striking out ``active-
            status'' and inserting in lieu thereof ``active status''.
                (10) Section 12012 is amended by inserting ``the'' in the
            section heading before the penultimate word.
                (11)(A) The heading for section 12201 is amended to read as
            follows:

    ``Sec. 12201. Reserve officers: qualifications for appointment''.

                (B) The item relating to that section in the table of
            sections at the beginning of chapter 1205 is amended to read as
            follows:

    ``12201. Reserve officers: qualifications for appointment.''.

                (12)(A) The heading for section 12209 is amended to read as
            follows:

    ``Sec. 12209. Officer candidates: enlisted Reserves''.

                (B) The heading for section 12210 is amended to read as
            follows:

    ``Sec. 12210. Attending Physician to the Congress: reserve grade while
                            so serving''.

                (13)(A) The headings for sections 12211, 12212, 12213, and
            12214 are amended by inserting ``the'' after ``National Guard
            of''
                (B) The table of sections at the beginning of chapter 1205
            is amended by inserting ``the'' in the items relating to
            sections 12211, 12212, 12213, and 12214 after ``National Guard
            of''.
                (14) Section 12213(a) is amended by striking out ``section
            593'' and inserting in lieu thereof ``section 12203''.
                (15) The table of sections at the beginning of chapter 1207
            is amended by striking out ``promotions'' in the item relating
            to section 12243 and inserting in lieu thereof ``promotion''.
                (16) The table of sections at the beginning of chapter 1209
            is amended--

    [[Page 110 STAT. 497]]

                        (A) in the item relating to section 12304, by
                    striking out the colon and inserting in lieu thereof a
                    semicolon; and
                        (B) in the item relating to section 12308, by
                    striking out the second, third, and fourth words.
                (17) Section 12307 is amended by striking out ``Ready
            Reserve'' in the second sentence and inserting in lieu thereof
            ``Retired Reserve''.
                (18)(A) The table of sections at the beginning of chapter
            1211 is amended by inserting ``the'' in the items relating to
            sections 12401, 12402, 12403, and 12404 after ``Army and Air
            National Guard of''.
                (B) The headings for sections 12402, 12403, and 12404 are
            amended by inserting ``the'' after ``Army and Air National Guard
            of''
                (19) Section 12407(b) is amended--
                        (A) by striking out ``of those jurisdictions'' and
                    inserting in lieu thereof ``State''; and
                        (B) by striking out ``jurisdictions'' and inserting
                    in lieu thereof ``States''.
                (20) Section 12731(f) is amended by striking out ``the date
            of the enactment of this subsection'' and inserting in lieu
            thereof ``October 5, 1994,''.
                (21) Section 12731a(c)(3) is amended by inserting a comma
            after ``Defense Conversion''.
                (22) Section 14003 is amended by inserting ``lists'' in the
            section heading immediately before the colon.
                (23) The table of sections at the beginning of chapter 1403
            is amended by striking out ``selection board'' in the item
            relating to section 14105 and inserting in lieu thereof
            ``promotion board''.
                (24) The table of sections at the beginning of chapter 1405
            is amended--
                        (A) in the item relating to section 14307, by
                    striking out ``Numbers'' and inserting in lieu thereof
                    ``Number'';
                        (B) in the item relating to section 14309, by
                    striking out the colon and inserting in lieu thereof a
                    semicolon; and
                        (C) in the item relating to section 14314, by
                    capitalizing the initial letter of the antepenultimate
                    word.
                (25) Section 14315(a) is amended by striking out ``a Reserve
            officer'' and inserting in lieu thereof ``a reserve officer''.
                (26) Section 14317(e) is amended--
                        (A) by inserting ``Officers Ordered to Active Duty
                    in Time of War or National Emergency.--'' after ``(e)'';
                    and
                        (B) by striking out ``section 10213 or 644'' and
                    inserting in lieu thereof ``section 123 or 10213''.
                (27) The table of sections at the beginning of chapter 1407
            is amended--
                        (A) in the item relating to section 14506, by
                    inserting ``reserve'' after ``Marine Corps and''; and
                        (B) in the item relating to section 14507, by
                    inserting ``reserve'' after ``Removal from the''; and
                        (C) in the item relating to section 14509, by
                    inserting ``in grades'' after ``reserve officers''.

    [[Page 110 STAT. 498]]

                (28) Section 14501(a) is amended by inserting ``Officers
            Below the Grade of Colonel or Navy Captain.--'' after ``(a)''.
                (29) The heading for section 14506 is amended by inserting a
            comma after ``Air Force''.
                (30) Section 14508 is amended by striking out ``this'' after
            ``from an active status under'' in subsections (c) and (d).
                (31) Section 14515 is amended by striking out ``inactive
            status'' and inserting in lieu thereof ``inactive-status''.
                (32) Section 14903(b) is amended by striking out ``chapter''
            and inserting in lieu thereof ``title''.
                (33) The table of sections at the beginning of chapter 1606
            is amended in the item relating to section 16133 by striking out
            ``limitations'' and inserting in lieu thereof ``limitation''.
                (34) Section 16132(c) is amended by striking out ``section''
            and inserting in lieu thereof ``sections''.
                (35) Section 16135(b)(1)(A) is amended by striking out
            ``section 2131(a)'' and inserting in lieu thereof ``section
            16131(a)''.
                (36) Section 18236(b)(1) is amended by striking out
            ``section 2233(e)'' and inserting in lieu thereof ``section
            18233(e)''.
                (37) Section 18237 is amended--
                        (A) in subsection (a), by striking out ``section
                    2233(a)(1)'' and inserting in lieu thereof ``section
                    18233(a)(1)''; and
                        (B) in subsection (b), by striking out ``section
                    2233(a)'' and inserting in lieu thereof ``section
                    18233(a)''.

        (c) <<NOTE: Effective date. 10 USC 101 note.>>  Other Provisions of
    Title 10.--Effective as of December 1, 1994 (except as otherwise
    expressly provided), and as if included as amendments made by the
    Reserve Officer Personnel Management Act (title XVI of Public Law 103-
    360) as originally enacted, title 10, United States Code, is amended as
    follows:
                (1) Section 101(d)(6)(B)(i) is amended by striking out
            ``section 175'' and inserting in lieu thereof ``section 10301''.
                (2) Section 114(b) is amended by striking out ``chapter
            133'' and inserting in lieu thereof ``chapter 1803''.
                (3) Section 115(d) is amended--
                        (A) in paragraph (1), by striking out ``section
                    673'' and inserting in lieu thereof ``section 12302'';
                        (B) in paragraph (2), by striking out ``section
                    673b'' and inserting in lieu thereof ``section 12304'';
                    and
                        (C) in paragraph (3), by striking out ``section 3500
                    or 8500'' and inserting in lieu thereof ``section
                    12406''.
                (4) Section 123(a) is amended--
                        (A) by striking out ``281, 592, 1002, 1005, 1006,
                    1007, 1374, 3217, 3218, 3219, 3220, 3352(a) (last
                    sentence),'', ``5414, 5457, 5458, 5506,'', and ``8217,
                    8218, 8219,''; and
                        (B) by striking out ``and 8855'' and inserting in
                    lieu thereof ``8855, 10214, 12003, 12004, 12005, 12007,
                    12202, 12213(a) (second sentence), 12642, 12645, 12646,
                    12647, 12771, 12772, and 12773''.
                (5) Section 582(1) is amended by striking out ``section
            672(d)'' in subparagraph (B) and ``section 673b'' in
            subparagraph (D) and inserting in lieu thereof ``section
            12301(d)'' and ``section 12304'', respectively.
                (6) Section 641(1)(B) is amended by striking out ``10501''
            and inserting in lieu thereof ``10502, 10505, 10506(a),
            10506(b), 10507''.

    [[Page 110 STAT. 499]]

                (7) The table of sections at the beginning of chapter 39 is
            amended by striking out the items relating to sections 687 and
            690.
                (8) Sections 1053(a)(1) and 1064 are amended by striking out
            ``chapter 67'' and inserting in lieu thereof ``chapter 1223''.
                (9) Section 1063(a)(1) is amended by striking out ``section
            1332(a)(2)'' and inserting in lieu thereof ``section
            12732(a)(2)''.
                (10) Section 1074b(b)(2) is amended by striking out
            ``section 673c'' and inserting in lieu thereof ``section
            12305''.
                (11) Section 1076(b)(2)(A) is amended by striking out
            ``before the effective date of the Reserve Officer Personnel
            Management Act'' and inserting in lieu thereof ``before December
            1, 1994''.
                (12) Section 1176(b) is amended by striking out ``section
            1332'' in the matter preceding paragraph (1) and in paragraphs
            (1) and (2) and inserting in lieu thereof ``section 12732''.
                (13) Section 1208(b) is amended by striking out ``section
            1333'' and inserting in lieu thereof ``section 12733''.
                (14) Section 1209 is amended by striking out ``section
            1332'', ``section 1335'', and ``chapter 71'' and inserting in
            lieu thereof ``section 12732'', ``section 12735'', and ``section
            12739'', respectively.
                (15) Section 1407 is amended--
                        (A) in subsection (c)(1) and (d)(1), by striking out
                    ``section 1331'' and inserting in lieu thereof ``section
                    12731''; and
                        (B) in the heading for paragraph (1) of subsection
                    (d), by striking out ``chapter 67'' and inserting in
                    lieu thereof ``chapter 1223''.
                (16) Section 1408(a)(5) is amended by striking out ``section
            1331'' and inserting in lieu thereof ``section 12731''.
                (17) Section 1431(a)(1) is amended by striking out ``section
            1376(a)'' and inserting in lieu thereof ``section 12774(a)''.
                (18) Section 1463(a)(2) is amended by striking out ``chapter
            67'' and inserting in lieu thereof ``chapter 1223''.
                (19) Section 1482(f)(2) is amended by inserting ``section''
            before ``12731 of this title''.
                (20) The table of sections at the beginning of chapter 533
            is amended by striking out the item relating to section 5454.
                (21) Section 2006(b)(1) is amended by striking out ``chapter
            106 of this title'' and inserting in lieu thereof ``chapter 1606
            of this title''.
                (22) <<NOTE: Effective date.>>  Section 2121(c) is amended
            by striking out ``section 3353, 5600, or 8353'' and inserting in
            lieu thereof ``section 12207'', effective on the effective date
            specified in section 1691(b)(1) of Public Law 103-337.
                (23) Section 2130a(b)(3) is amended by striking out
            ``section 591'' and inserting in lieu thereof ``section 12201''.
                (24) The table of sections at the beginning of chapter 337
            is amended by striking out the items relating to section 3351
            and 3352.
                (25) Sections 3850, 6389(c), 6391(c), and 8850 are amended
            by striking out ``section 1332'' and inserting in lieu thereof
            ``section 12732''.
                (26) <<NOTE: Effective date.>>  Section 5600 is repealed,
            effective on the effective date specified in section 1691(b)(1)
            of Public Law 103-337.

    [[Page 110 STAT. 500]]

                (27) Section 5892 is amended by striking out ``section 5457
            or section 5458'' and inserting in lieu thereof ``section 12004
            or section 12005''.
                (28) Section 6410(a) is amended by striking out ``section
            1005'' and inserting in lieu thereof ``section 12645''.
                (29) The table of sections at the beginning of chapter 837
            is amended by striking out the items relating to section 8351
            and 8352.
                (30) Section 8360(b) is amended by striking out ``section
            1002'' and inserting in lieu thereof ``section 12642''.
                (31) Section 8380 is amended by striking out ``section 524''
            in subsections (a) and (b) and inserting in lieu thereof
            ``section 12011''.
                (32) Sections 8819(a), 8846(a), and 8846(b) are amended by
            striking out ``sections 1005 and 1006'' and inserting in lieu
            thereof ``sections 12645 and 12646''.
                (33) Section 8819 is amended by striking out ``section
            1005'' and ``section 1006'' and inserting in lieu thereof
            ``section 12645'' and ``section 12646'', respectively.

        (d) Cross References in Other Defense Laws.--
                (1) Section 337(b) of the National Defense Authorization Act
            for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
            2717) <<NOTE: 10 USC 2466 note.>>  is amended by inserting
            before the period at the end the following: ``or who after
            November 30, 1994, transferred to the Retired Reserve under
            section 10154(2) of title 10, United States Code, without having
            completed the years of service required under section
            12731(a)(2) of such title for eligibility for retired pay under
            chapter 1223 of such title''.
                (2) Section 525 of the National Defense Authorization Act
            for Fiscal Years 1992 and 1993 (Public Law 102-190, 105 Stat.
            1363) <<NOTE: 10 USC 12321 note.>>  is amended by striking out
            ``section 690'' and inserting in lieu thereof ``section 12321''.
                (3) Subtitle B of title XLIV of the National Defense
            Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10
            U.S.C. 12681 note) is amended--
                        (A) in section 4415, <<NOTE: 106 Stat. 2714.>>  by
                    striking out ``section 1331a'' and inserting in lieu
                    thereof ``section 12731a'';
                        (B) in subsection 4416-- <<NOTE: 106 Stat. 2714.>>
                              (i) in subsection (a), by striking out
                          ``section 1331'' and inserting in lieu thereof
                          ``section 12731'';
                              (ii) in subsection (b)--
                                        (I) by inserting ``or section
                                    12732'' in paragraph (1) after ``under
                                    that section''; and
                                        (II) by inserting ``or 12731(a)'' in
                                    paragraph (2) after ``section 1331(a)'';
                              (iii) in subsection (e)(2), by striking out
                          ``section 1332'' and inserting in lieu thereof
                          ``section 12732''; and
                              (iv) in subsection (g), by striking out
                          ``section 1331a'' and inserting in lieu thereof
                          ``section 12731a''; and
                        (C) in section 4418-- <<NOTE: 106 Stat. 2717.>>
                              (i) in subsection (a), by striking out
                          ``section 1332'' and inserting in lieu thereof
                          ``section 12732''; and
                              (ii) in subsection (b)(1)(A), by striking out
                          ``section 1333'' and inserting in lieu thereof
                          ``section 12733''.
                (4) Title 37, United States Code, is amended--

    [[Page 110 STAT. 501]]

                        (A) in section 302f(b), by striking out ``section
                    673c of title 10'' in paragraphs (2) and (3)(A) and
                    inserting in lieu thereof ``section 12305 of title 10'';
                    and
                        (B) in section 433(a), by striking out ``section 687
                    of title 10'' and inserting in lieu thereof ``section
                    12319 of title 10''.

        (e) Cross References in Other Laws.--
                (1) Title 14, United States Code, is amended--
                        (A) in section 705(f), by striking out ``600 of
                    title 10'' and inserting in lieu thereof ``12209 of
                    title 10''; and
                        (B) in section 741(c), by striking out ``section
                    1006 of title 10'' and inserting in lieu thereof
                    ``section 12646 of title 10''.
                (2) Title 38, United States Code, is amended--
                        (A) in section 3011(d)(3), by striking out ``section
                    672, 673, 673b, 674, or 675 of title 10'' and inserting
                    in lieu thereof ``section 12301, 12302, 12304, 12306, or
                    12307 of title 10'';
                        (B) in sections 3012(b)(1)(B)(iii) and
                    3701(b)(5)(B), by striking out ``section 268(b) of title
                    10'' and inserting in lieu thereof ``section 10143(a) of
                    title 10'';
                        (C) in section 3501(a)(3)(C), by striking out
                    ``section 511(d) of title 10'' and inserting in lieu
                    thereof ``section 12103(d) of title 10''; and
                        (D) in section 4211(4)(C), by striking out ``section
                    672(a), (d), or (g), 673, or 673b of title 10'' and
                    inserting in lieu thereof ``section 12301(a), (d), or
                    (g), 12302, or 12304 of title 10''.
                (3) Section 702(a)(1) of the Soldiers' and Sailors' Civil
            Relief Act of 1940 (50 U.S.C. App. 592(a)(1)) is amended--
                        (A) by striking out ``section 672 (a) or (g), 673,
                    673b, 674, 675, or 688 of title 10'' and inserting in
                    lieu thereof ``section 688, 12301(a), 12301(g), 12302,
                    12304, 12306, or 12307 of title 10''; and
                        (B) by striking out ``section 672(d) of such title''
                    and inserting in lieu thereof ``section 12301(d) of such
                    title''.
                (4) Section 463A of the Higher Education Act of 1965 (20
            U.S.C. 1087cc-1) is amended in subsection (a)(10) by striking
            out ``(10 U.S.C. 2172)'' and inserting in lieu thereof ``(10
            U.S.C. 16302)''.
                (5) Section 179 of the National and Community Service Act of
            1990 (42 U.S.C. 12639) is amended in subsection (a)(2)(C) by
            striking out ``section 216(a) of title 5'' and inserting in lieu
            thereof ``section 10101 of title 10''.

        (f) Effective Dates.--
                (1) <<NOTE: 10 USC 12213 note.>>  Section 1636 of the
            Reserve Officer Personnel Management Act shall take effect on
            the date of the enactment of this Act.
                (2) <<NOTE: 10 USC 10001 note.>>  The amendments made by
            sections 1672(a), 1673(a) (with respect to chapters 541 and
            549), 1673(b)(2), 1673(b)(4), 1674(a), and 1674(b)(7) shall take
            effect on the effective date specified in section 1691(b)(1) of
            the Reserve Officer Personnel Management Act (notwithstanding
            section 1691(a) of such Act).
                (3) <<NOTE: 10 USC 113 note.>>  The amendments made by this
            section shall take effect as if included in the Reserve Officer
            Personnel Management Act as enacted on October 5, 1994.

    [[Page 110 STAT. 502]]

    SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE ON ARMED
                              SERVICES OF THE HOUSE OF
                              REPRESENTATIVES.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) Sections 503(b)(5), 520a(d), 526(d)(1), 619a(h)(2),
            806a(b), 838(b)(7), 946(c)(1)(A), 1098(b)(2), 2313(b)(4),
            2361(c)(1), 2371(h), 2391(c), 2430(b), 2432(b)(3)(B),
            2432(c)(2), 2432(h)(1), 2667(d)(3),
    2672a(b), 2687(b)(1), 4342(g), 7307(b)(1)(A), and 9342(g) are amended by
    striking out ``Committees on Armed Services of the Senate and House of
    Representatives'' and inserting in lieu thereof ``Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives''.
                (2) Sections 178(c)(1)(A), 942(e)(5), 2350f(c), 7426(e),
            7431(a), 7431(b)(1), 7431(c), 7438(b), 12302(b), 18235(a), and
            18236(a) are amended by striking out ``Committees on Armed
            Services of the Senate and the House of Representatives'' and
            inserting in lieu thereof ``Committee on Armed Services of the
            Senate and the Committee on National Security of the House of
            Representatives''.
                (3) Section 113(j)(1) is amended by striking out
            ``Committees on Armed Services and Committees on Appropriations
            of the Senate and'' and inserting in lieu thereof ``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''.
                (4) Section 119(g) is amended by striking out paragraphs (1)
            and (2) and inserting in lieu thereof the following:
                ``(1) the Committee on Armed Services and the Committee on
            Appropriations, and the Defense Subcommittee of the Committee on
            Appropriations, of the Senate; and
                ``(2) the Committee on National Security and the Committee
            on Appropriations, and the National Security Subcommittee of the
            Committee on Appropriations, of the House of Representatives.''.
                (5) Section 127(c) is amended by striking out ``Committees
            on Armed Services and Appropriations of the Senate and'' and
            inserting in lieu thereof ``Committee on Armed Services and the
            Committee on Appropriations of the Senate and the Committee on
            National Security and the Committee on Appropriations of''.
                (6) Section 135(e) is amended--
                        (A) by inserting ``(1)'' after ``(e)'';
                        (B) by striking out ``the Committees on Armed
                    Services and the Committees on Appropriations of the
                    Senate and House of Representatives are each'' and
                    inserting in lieu thereof ``each congressional committee
                    specified in paragraph (2) is''; and
                        (C) by adding at the end the following:

        ``(2) The committees referred to in paragraph (1) are--
                ``(A) the Committee on Armed Services and the Committee on
            Appropriations of the Senate; and
                ``(B) the Committee on National Security and the Committee
            on Appropriations of the House of Representatives.''.
                (7) Section 179(e) is amended by striking out ``to the
            Committees on Armed Services and Appropriations of the Sen

    [[Page 110 STAT. 503]]

            ate and'' and inserting in lieu thereof ``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''.
                (8) Sections 401(d) and 402(d) are amended by striking out
            ``submit to the'' and all that follows through ``Foreign
            Affairs'' and inserting in lieu thereof ``submit to the
            Committee on Armed Services and the Committee on Foreign
            Relations of the Senate and the Committee on National Security
            and the Committee on International Relations''.
                (9) Section 2367(d)(2) is amended by striking out ``the
            Committees on Armed Services and the Committees on
            Appropriations of the Senate and'' and inserting in lieu thereof
            ``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''.
                (10) Sections 2306b(g), 2801(c)(4), and 18233a(a)(1) are
            amended by striking out ``the Committees on Armed Services and
            on Appropriations of the Senate and'' and inserting in lieu
            thereof ``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''.
                (11) Section 1599(e)(2) is amended--
                        (A) in subparagraph (A), by striking out ``The
                    Committees on Armed Services and Appropriations'' and
                    inserting in lieu thereof ``The Committee on National
                    Security, the Committee on Appropriations,''; and
                        (B) in subparagraph (B), by striking out ``The
                    Committees on Armed Services and Appropriations'' and
                    inserting in lieu thereof ``The Committee on Armed
                    Services, the Committee on Appropriations,''.
                (12) Sections 4355(a)(3), 6968(a)(3), and 9355(a)(3) are
            amended by striking out ``Armed Services'' and inserting in lieu
            thereof ``National Security''.
                (13) Section 1060(d) is amended by striking out ``Committee
            on Armed Services and the Committee on Foreign Affairs'' and
            inserting in lieu thereof ``Committee on National Security and
            the Committee on International Relations''.
                (14) Section 2215 is amended--
                        (A) by inserting ``(a) Certification Required.--''
                    at the beginning of the text of the section;
                        (B) by striking out ``to the Committees'' and all
                    that follows through ``House of Representatives'' and
                    inserting in lieu thereof ``to the congressional
                    committees specified in subsection (b)''; and
                        (C) by adding at the end the following:

        ``(b) Congressional Committees.--The committees referred to in
    subsection (a) are--
                ``(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.''.
                (15) Section 2218 is amended--
                        (A) in subsection (j), by striking out ``the
                    Committees on Armed Services and on Appropriations of
                    the Senate

    [[Page 110 STAT. 504]]

                    and the House of Representatives'' and inserting in lieu
                    thereof ``the congressional defense committees''; and
                        (B) by adding at the end of subsection (k) the
                    following new paragraph:
                ``(4) The term `congressional defense committees' means--
                        ``(A) the Committee on Armed Services and the
                    Committee on Appropriations of the Senate; and
                        ``(B) the Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.
                (16) Section 2342(b) is amended--
                        (A) in the matter preceding paragraph (1), by
                    striking out ``section--'' and inserting in lieu thereof
                    ``section unless--'';
                        (B) in paragraph (1), by striking out ``unless'';
                    and
                        (C) in paragraph (2), by striking out ``notifies
                    the'' and all that follows through ``House of
                    Representatives'' and inserting in lieu thereof ``the
                    Secretary submits to the Committee on Armed Services and
                    the Committee on Foreign Relations of the Senate and the
                    Committee on National Security and the Committee on
                    International Relations of the House of Representatives
                    notice of the intended designation''.
                (17) Section 2350a(f)(2) is amended by striking out ``submit
            to the Committees'' and all that follows through ``House of
            Representatives'' and inserting in lieu thereof ``submit to the
            Committee on Armed Services and the Committee on Foreign
            Relations of the Senate and the Committee on National Security
            and the Committee on International Relations of the House of
            Representatives''.
                (18) Section 2366 is amended--
                        (A) in subsection (d), by striking out ``the
                    Committees on Armed Services and on Appropriations of
                    the Senate and House of Representatives'' and inserting
                    in lieu thereof ``the congressional defense
                    committees''; and
                        (B) by adding at the end of subsection (e) the
                    following new paragraph:
                ``(7) The term `congressional defense committees' means--
                        ``(A) the Committee on Armed Services and the
                    Committee on Appropriations of the Senate; and
                        ``(B) the Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.
                (19) Section 2399(h)(2) is amended by striking out ``means''
            and all the follows and inserting in lieu thereof the following:
            ``means--
                        ``(A) the Committee on Armed Services and the
                    Committee on Appropriations of the Senate; and
                        ``(B) the Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.
                (20) Section 2401(b)(1) is amended--
                        (A) in subparagraph (B), by striking out ``the
                    Committees on Armed Services and on Appropriations of
                    the Senate and'' and inserting in lieu thereof ``the
                    Committee on Armed Services and the Committee on
                    Appropriations of the Sen

    [[Page 110 STAT. 505]]

                    ate and the Committee on National Security and the
                    Committees on Appropriations of the''; and
                        (B) in subparagraph (C), by striking out ``the
                    Committees on Armed Services and on Appropriations of
                    the Senate and House of Representatives'' and inserting
                    in lieu thereof ``those committees''.
                (21) Section 2403(e) is amended--
                        (A) by inserting ``(1)'' before ``Before making'';
                        (B) by striking out ``shall notify the Committees on
                    Armed Services and on Appropriations of the Senate and
                    House of Representatives'' and inserting in lieu thereof
                    ``shall submit to the congressional committees specified
                    in paragraph (2) notice''; and
                        (C) by adding at the end the following new
                    paragraph:

        ``(2) The committees referred to in paragraph (1) are--
                ``(A) the Committee on Armed Services and the Committee on
            Appropriations of the Senate; and
                ``(B) the Committee on National Security and the Committee
            on Appropriations of the House of Representatives.''.
                (22) Section 2515(d) is amended--
                        (A) by striking out ``Reporting'' and all that
                    follows through ``same time'' and inserting in lieu
                    thereof ``Annual Report.--(1) The Secretary of Defense
                    shall submit to the congressional committees specified
                    in paragraph (2) an annual report on the activities of
                    the Office. The report shall be submitted each year at
                    the same time''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(2) The committees referred to in paragraph (1) are--
                ``(A) the Committee on Armed Services and the Committee on
            Appropriations of the Senate; and
                ``(B) the Committee on National Security and the Committee
            on Appropriations of the House of Representatives.''.
                (23) Section 2662 is amended--
                        (A) in subsection (a)--
                              (i) in the matter preceding paragraph (1), by
                          striking out ``the Committees on Armed Services of
                          the Senate and House of Representatives'' and
                          inserting in lieu thereof ``the Committee on Armed
                          Services of the Senate and the Committee on
                          National Security of the House of
                          Representatives''; and
                              (ii) in the matter following paragraph (6), by
                          striking out ``to be submitted to the Committees
                          on Armed Services of the Senate and House of
                          Representatives'';
                        (B) in subsection (b), by striking out ``shall
                    report annually to the Committees on Armed Services of
                    the Senate and the House of Representatives'' and
                    inserting in lieu thereof ``shall submit annually to the
                    congressional committees named in subsection (a) a
                    report'';
                        (C) in subsection (e), by striking out ``the
                    Committees on Armed Services of the Senate and the House
                    of Representatives'' and inserting in lieu thereof ``the
                    congressional committees named in subsection (a)''; and
                        (D) in subsection (f), by striking out ``the
                    Committees on Armed Services of the Senate and the House
                    of Representatives shall'' and inserting in lieu thereof
                    ``the congressional committees named in subsection (a)
                    shall''.
                (24) Section 2674(a) is amended--

    [[Page 110 STAT. 506]]

                        (A) in paragraph (2), by striking out ``Committees
                    on Armed Services of the Senate and the House of
                    Representatives, the Committee on Environment and Public
                    Works of the Senate, and the Committee on Public Works
                    and Transportation of the House of Representatives'' and
                    inserting in lieu thereof ``congressional committees
                    specified in paragraph (3)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(3) The committees referred to in paragraph (2) are--
                ``(A) the Committee on Armed Services and the Committee on
            Environment and Public Works of the Senate; and
                ``(B) the Committee on National Security and the Committee
            on Transportation and Infrastructure of the House of
            Representatives.''.
                (25) Section 2813(c) is amended by striking out ``Committees
            on Armed Services and the Committees on Appropriations of the
            Senate and House of Representatives'' and inserting in lieu
            thereof ``appropriate committees of Congress''.
                (26) Sections 2825(b)(1) and 2832(b)(2) are amended by
            striking out ``Committees on Armed Services and the Committees
            on Appropriations of the Senate and of the House of
            Representatives'' and inserting in lieu thereof ``appropriate
            committees of Congress''.
                (27) Section 2865(e)(2) and 2866(c)(2) are amended by
            striking out ``Committees on Armed Services and Appropriations
            of the Senate and House of Representatives'' and inserting in
            lieu thereof ``appropriate committees of Congress''.
                (28)(A) Section 7434 of such title is amended to read as
            follows:

    ``Sec. 7434. Annual report to congressional committees

        ``Not later than October 31 of each year, the Secretary shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report on the
    production from the naval petroleum reserves during the preceding
    calendar year.''.
                (B) The item relating to such section in the table of
            contents at the beginning of chapter 641 is amended to read as
            follows:

    ``7434. Annual report to congressional committees.''.

        (b) Title 37, United States Code.--Sections 301b(i)(2) and 406(i) of
    title 37, United States Code, are amended by striking out ``Committees
    on Armed Services of the Senate and House of Representatives'' and
    inserting in lieu thereof ``Committee on Armed Services of the Senate
    and the Committee on National Security of the House of
    Representatives''.
        (c) Annual Defense Authorization Acts.--
                (1) The National Defense Authorization Act for Fiscal Year
            1994 (Public Law 103-160) is amended in sections 2922(b) and
            2925(b) (10 U.S.C. 2687 note) by striking out ``Committees on
            Armed Services of the Senate and House of Representatives'' and
            inserting in lieu thereof ``Committee on Armed Services of the
            Senate and the Committee on National Security of the House of
            Representatives''.
                (2) The National Defense Authorization Act for Fiscal Year
            1993 (Public Law 102-484) is amended--
                        (A) in section 326(a)(5) (10 U.S.C. 2301
                    note) <<NOTE: 10 USC 2302 note.>>  and section 1304(a)
                    (10 U.S.C. 113 note), by striking out ``Com-

    [[Page 110 STAT. 507]]

                    mittees on Armed Services of the Senate and House of
                    Representatives'' and inserting in lieu thereof
                    ``Committee on Armed Services of the Senate and the
                    Committee on National Security of the House of
                    Representatives''; and
                        (B) in section 1505(e)(2)(B) (22 U.S.C. 5859a), by
                    striking out ``the Committee on Armed Services, the
                    Committee on Appropriations, the Committee on Foreign
                    Affairs, and the Committee on Energy and Commerce'' and
                    inserting in lieu thereof ``the Committee on National
                    Security, the Committee on Appropriations, the Committee
                    on International Relations, and the Committee on
                    Commerce''.
                (3) Section 1097(a)(1) of the National Defense Authorization
            Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 22
            U.S.C. 2751 note) is amended by striking out ``the Committees on
            Armed Services and Foreign Affairs'' and inserting in lieu
            thereof ``the Committee on National Security and the Committee
            on International Relations''.
                (4) The National Defense Authorization Act for Fiscal Year
            1991 (Public Law 101-510) is amended as follows:
                        (A) Section 402(a) and section 1208(b)(3) <<NOTE: 10
                    USC 115 note.>>  (10 U.S.C. 1701 note) are amended by
                    striking out ``Committees on Armed Services of the
                    Senate and the House of Representatives'' and inserting
                    in lieu thereof ``Committee on Armed Services of the
                    Senate and the Committee on National Security of the
                    House of Representatives''.
                        (B) Section 1403 (50 U.S.C. 404b) is amended--
                              (i) in subsection (a), by striking out ``the
                          Committees on'' and all that follows through
                          ``each year'' and inserting in lieu thereof ``the
                          congressional committees specified in subsection
                          (d) each year''; and
                              (ii) by adding at the end the following new
                          subsection:

        ``(d) Specified Congressional Committees.--The congressional
    committees referred to in subsection (a) are the following:
                ``(1) The Committee on Armed Services, the Committee on
            Appropriations, and the Select Committee on Intelligence of the
            Senate.
                ``(2) The Committee on National Security, the Committee on
            Appropriations, and the Permanent Select Committee on
            Intelligence of the House of Representatives.''.
                        (C) Section 1457 (50 U.S.C. 404c) is amended--
                              (i) in subsection (a), by striking out ``shall
                          submit to the'' and all that follows through
                          ``each year'' and inserting in lieu thereof
                          ``shall submit to the congressional committees
                          specified in subsection (d) each year'';
                              (ii) in subsection (c)--
                                        (I) by striking out ``(1) Except as
                                    provided in paragraph (2), the
                                    President'' and inserting in lieu
                                    thereof ``The President''; and
                                        (II) by striking out paragraph (2);
                                    and
                              (iii) by adding at the end the following new
                          subsection:

        ``(d) Specified Congressional Committees.--The congressional
    committees referred to in subsection (a) are the following:
                ``(1) The Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.

    [[Page 110 STAT. 508]]

                ``(2) The Committee on National Security and the Committee
            on International Relations of the House of Representatives.''.
                        (D) Section 2921 (10 U.S.C. 2687 note) is amended--
                              (i) in subsection (e)(3)(A), by striking out
                          ``the Committee on Armed Services, the Committee
                          on Appropriations, and the Defense Subcommittees''
                          and inserting in lieu thereof ``the Committee on
                          National Security, the Committee on
                          Appropriations, and the National Security
                          Subcommittee''; and
                              (ii) in subsection (g)(2), by striking out
                          ``the Committee on Armed Services of the Senate
                          and House of Representatives'' and inserting in
                          lieu thereof ``the Committee on Armed Services of
                          the Senate and the Committee on National Security
                          of the House of Representatives''.
                (5) Section 613(h)(1) of the National Defense Authorization
            Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302 note),
            is amended by striking out ``the Committees on Armed Services of
            the Senate and the House of Representatives'' and inserting in
            lieu thereof ``the Committee on Armed Services of the Senate and
            the Committee on National Security of the House of
            Representatives''.
                (6) Section 1412 of the Department of Defense Authorization
            Act, 1986 (Public Law 99-145; 50 U.S.C. 1521), is amended in
            subsections (b)(4) and (k)(2), by striking out ``Committees on
            Armed Services of the Senate and House of Representatives'' and
            inserting in lieu thereof ``Committee on Armed Services of the
            Senate and the Committee on National Security of the House of
            Representatives''.
                (7) Section 1002(d) of the Department of Defense
            Authorization Act, 1985 (Public Law 98-525; 22 U.S.C. 1928
            note), is amended by striking out ``the Committees on Armed
            Services of the Senate and the House of Representatives'' and
            inserting in lieu thereof ``the Committee on Armed Services of
            the Senate, the Committee on National Security of the House of
            Representatives''.
                (8) Section 1252 of the Department of Defense Authorization
            Act, 1984 (42 U.S.C. 248d), is amended--
                        (A) in subsection (d), by striking out ``Committees
                    on Appropriations and on Armed Services of the Senate
                    and the House of Representatives'' and inserting in lieu
                    thereof ``Committee on Appropriations and the Committee
                    on Armed Services of the Senate and the Committee on
                    Appropriations and the Committee on National Security of
                    the House of Representatives''; and
                        (B) in subsection (e), by striking out ``Committees
                    on Appropriations and on Armed Services of the Senate
                    and the House of Representatives'' and inserting in lieu
                    thereof ``congressional committees specified in
                    subsection (d)''.

        (d) Base Closure Law.--The Defense Base Closure and Realignment Act
    of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
    note) is amended as follows:
                (1) Sections 2902(e)(2)(B)(ii) and 2908(b) are amended by
            striking out ``Armed Services'' the first place it appears and
            inserting in lieu thereof ``National Security''.
                (2) Section 2910(2) is amended by striking out ``the
            Committees on Armed Services and the Committees on
            Appropriations

    [[Page 110 STAT. 509]]

            of the Senate and of the House of Representatives'' and
            inserting in lieu thereof ``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''.

        (e) National Defense Stockpile.--The Strategic and Critical
    Materials Stock Piling Act is amended--
                (1) in section 6(d) (50 U.S.C. 98e(d))--
                        (A) in paragraph (1), by striking out ``Committees
                    on Armed Services of the Senate and House of
                    Representatives'' and inserting in lieu thereof
                    ``Committee on Armed Services of the Senate and the
                    Committee on National Security of the House of
                    Representatives''; and
                        (B) in paragraph (2), by striking out ``the
                    Committees on Armed Services of the Senate and House of
                    Representatives'' and inserting in lieu thereof ``such
                    congressional committees''; and
                (2) in section 7(b) (50 U.S.C. 98f(b)), by striking out
            ``Committees on Armed Services of the Senate and House of
            Representatives'' and inserting in lieu thereof ``Committee on
            Armed Services of the Senate and the Committee on National
            Security of the House of Representatives''.

        (f) Other Defense-Related Provisions.--
                (1) Section 8125(g)(2) of the Department of Defense
            Appropriations Act, 1989 (Public Law 100-463; 10 U.S.C. 113
            note), is amended by striking out ``Committees on Appropriations
            and Armed Services of the Senate and House of Representatives''
            and inserting in lieu thereof ``Committee on Appropriations and
            the Committee on Armed Services of the Senate and the Committee
            on Appropriations and the Committee on National Security of the
            House of Representatives''.
                (2) Section 9047A of the Department of Defense
            Appropriations Act, 1993 (Public Law 102-396; 10 U.S.C. 2687
            note), is amended by striking out ``the Committees on
            Appropriations and Armed Services of the House of
            Representatives and the Senate'' and inserting in lieu thereof
            ``the Committee on Appropriations and the Committee on Armed
            Services of the Senate and the Committee on Appropriations and
            the Committee on National Security of the House of
            Representatives''.
                (3) Section 3059(c)(1) of the Defense Drug Interdiction
            Assistance Act (subtitle A of title III of Public Law 99-570; 10
            U.S.C. 9441 note) is amended by striking out ``Committees on
            Appropriations and on Armed Services of the Senate and the House
            of Representatives'' and inserting in lieu thereof ``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''.
                (4) Section 7606(b) of the Anti-Drug Abuse Act of 1988
            (Public Law 100-690; 10 U.S.C. 9441 note) is amended by striking
            out ``Committees on Appropriations and the Committee on Armed
            Services of the Senate and the House of Representatives'' and
            inserting in lieu thereof ``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''.

    [[Page 110 STAT. 510]]

                (5) Section 104(d)(5) of the National Security Act of 1947
            (50 U.S.C. 403-4(d)(5)) is amended by striking out ``Committees
            on Armed Services of the Senate and House of Representatives''
            and inserting in lieu thereof ``Committee on Armed Services of
            the Senate and the Committee on National Security of the House
            of Representatives''.
                (6) Section 8 of the Inspector General Act of 1978 (5 U.S.C.
            App.) is amended--
                        (A) in subsection (b)(3), by striking out
                    ``Committees on Armed Services and Government
                    Operations'' and inserting in lieu thereof ``Committee
                    on National Security and the Committee on Government
                    Reform and Oversight'';
                        (B) in subsection (b)(4), by striking out
                    ``Committees on Armed Services and Governmental Affairs
                    of the Senate and the Committees on Armed Services and
                    Government Operations of the House of Representatives''
                    and inserting in lieu thereof ``congressional committees
                    specified in paragraph (3)'';
                        (C) in subsection (f)(1), by striking out
                    ``Committees on Armed Services and Government
                    Operations'' and inserting in lieu thereof ``Committee
                    on National Security and the Committee on Government
                    Reform and Oversight''; and
                        (D) in subsection (f)(2), by striking out
                    ``Committees on Armed Services and Governmental Affairs
                    of the Senate and the Committees on Armed Services and
                    Government Operations of the House of Representatives''
                    and inserting in lieu thereof ``congressional committees
                    specified in paragraph (1)''.
                (7) Section 204(h)(3) of the Federal Property and
            Administrative Services Act of 1949 (40 U.S.C. 485(h)(3)) is
            amended by striking out ``Committees on Armed Services of the
            Senate and of the House of Representatives'' and inserting in
            lieu thereof ``Committee on Armed Services of the Senate and the
            Committee on National Security of the House of
            Representatives''.
    SEC. 1503. MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED STATES
                              CODE.

        (a) Subtitle A.--Subtitle A of title 10, United States Code, is
    amended as follows:
                (1) Section 113(i)(2)(B) is amended by striking out ``the
            five years covered'' and all that follows through ``section
            114(g)'' and inserting in lieu thereof ``the period covered by
            the future-years defense program submitted to Congress during
            that year pursuant to section 221''.
                (2) Section 136(c) is amended by striking out
            ``Comptroller'' and inserting in lieu thereof ``Under Secretary
            of Defense (Comptroller)''.
                (3) Section 526 is amended--
                        (A) in subsection (a), by striking out paragraphs
                    (1), (2), and (3) and inserting in lieu thereof the
                    following:
                ``(1) For the Army, 302.
                ``(2) For the Navy, 216.
                ``(3) For the Air Force, 279.'';
                        (B) by striking out subsection (b);

    [[Page 110 STAT. 511]]

                        (C) by redesignating subsections (c), (d), and (e)
                    as subsections (b), (c), and (d);
                        (D) in subsection (b), as so redesignated, by
                    striking out ``that are applicable on and after October
                    1, 1995''; and
                        (E) in paragraph (2)(B) of subsection (c), as
                    redesignated by subparagraph (C), is amended--
                              (i) by striking out ``the'' after ``in the'';
                              (ii) by inserting ``to'' after ``reserve
                          component, or''; and
                              (iii) by inserting ``than'' after ``in a grade
                          other''.
                (4) Section 528(a) is amended by striking out ``after
            September 30, 1995,''.
                (5) Section 573(a)(2) is amended by striking out ``active
            duty list'' and inserting in lieu thereof ``active-duty list''.
                (6) Section 661(d)(2) is amended--
                        (A) in subparagraph (B), by striking out ``Until
                    January 1, 1994'' and all that follows through ``each
                    position so designated'' and inserting in lieu thereof
                    ``Each position designated by the Secretary under
                    subparagraph (A)'';
                        (B) in subparagraph (C), by striking out ``the
                    second sentence of''; and
                        (C) by striking out subparagraph (D).
                (7) Section 706(c)(1) is amended by striking out ``section
            4301 of title 38'' and inserting in lieu thereof ``chapter 43 of
            title 38''.
                (8) Section 1059 is amended by striking out ``subsection
            (j)'' in subsections (c)(2) and (g)(3) and inserting in lieu
            thereof ``subsection (k)''.
                (9) Section 1060a(f)(2)(B) is amended by striking out ``(as
            defined in section 101(a)(22) of the Immigration and Nationality
            Act (8 U.S.C. 1101(a)(22)))'' and inserting in
    lieu thereof ``, as determined in accordance with the Immigration and
    Nationality Act (8 U.S.C. 1101 et seq.)''.
                (10) Section 1151 is amended--
                        (A) in subsection (b), by striking out ``(20 U.S.C.
                    2701 et seq.)'' in paragraphs (2)(A) and (3)(A) and
                    inserting in lieu thereof ``(20 U.S.C. 6301 et seq.)'';
                    and
                        (B) in subsection (e)(1)(B), by striking out ``not
                    later than one year after the date of the enactment of
                    the National Defense Authorization Act for Fiscal Year
                    1995'' and inserting in lieu thereof ``not later than
                    October 5, 1995''.
                (11) Section 1152(g)(2) is amended by striking out ``not
            later than 180 days after the date of the enactment of the
            National Defense Authorization Act for Fiscal Year 1995'' and
            inserting in lieu thereof ``not later than April 3, 1994,''.
                (12) Section 1177(b)(2) is amended by striking out
            ``provison of law'' and inserting in lieu thereof ``provision of
            law''.
                (13) The heading for chapter 67 is amended by striking out
            ``NONREGULAR'' and inserting in lieu thereof ``NON-REGULAR''.
                (14) Section 1598(a)(2)(A) is amended by striking out
            ``2701'' and inserting in lieu thereof ``6301''.
                (15) Section 1745(a) is amended by striking out ``section
            4107(d)'' both places it appears and inserting in lieu thereof
            ``section 4107(b)''.

    [[Page 110 STAT. 512]]

                (16) Section 1746(a) is amended--
                        (A) by striking out ``(1)'' before ``The Secretary
                    of Defense''; and
                        (B) by redesignating subparagraphs (A) and (B) as
                    paragraphs (1) and (2), respectively.
                (17) Section 2006(b)(2)(B)(ii) is amended by striking out
            ``section 1412 of such title'' and inserting in lieu thereof
            ``section 3012 of such title''.
                (18) Section 2011(a) is amended by striking out ``to'' and
            inserting in lieu thereof ``To''.
                (19) Section 2194(e) is amended by striking out ``(20 U.S.C.
            2891(12))'' and inserting in lieu thereof ``(20 U.S.C. 8801)''.
                (20) Sections 2217(b) and 2220(a)(2) are amended by striking
            out ``Comptroller of the Department of Defense'' and inserting
            in lieu thereof ``Under Secretary of Defense (Comptroller)''.
                (21) Section 2401(c)(2) is amended by striking out
            ``pursuant to'' and all that follows through ``September 24,
            1983,''.
                (22) Section 2410f(b) is amended by striking out ``For
            purposes of'' and inserting in lieu thereof ``In''.
                (23) Section 2410j(a)(2)(A) is amended by striking out
            ``2701'' and inserting in lieu thereof ``6301''.
                (24) Section 2457(e) is amended by striking out ``title III
            of the Act of March 3, 1933 (41 U.S.C. 10a),'' and inserting in
            lieu thereof ``the Buy American Act (41 U.S.C. 10a)''.
                (25) Section 2465(b)(3) is amended by striking out ``under
            contract'' and all that follows through the period and inserting
            in lieu thereof ``under contract on September 24, 1983.''.
                (26) Section 2471(b) is amended--
                        (A) in paragraph (2), by inserting ``by'' after ``as
                    determined''; and
                        (B) in paragraph (3), by inserting ``of'' after
                    ``arising out''.
                (27) Section 2524(e)(4)(B) is amended by inserting a comma
            before ``with respect to''.
                (28) The heading of section 2525 is amended by capitalizing
            the initial letter of the second, fourth, and fifth words.
                (29) Chapter 152 is amended by striking out the table of
            subchapters at the beginning and the headings for subchapters I
            and II.
                (30) Section 2534(c) is amended by capitalizing the initial
            letter of the third and fourth words of the subsection heading.
                (31) The table of sections at the beginning of subchapter I
            of chapter 169 is amended by adding a period at the end of the
            item relating to section 2811.

        (b) Other Subtitles.--Subtitles B, C, and D of title 10, United
    States Code, are amended as follows:
                (1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) are
            amended by striking out ``Comptroller of the Department of
            Defense'' and inserting in lieu thereof ``Under Secretary of
            Defense (Comptroller)''.
                (2) Section 6241 is amended by inserting ``or'' at the end
            of paragraph (2).
                (3) Section 6333(a) is amended by striking out the first
            period after ``section 1405'' in formula C in the table under
            the column designated ``Column 2''.

    [[Page 110 STAT. 513]]

                (4) The item relating to section 7428 in the table of
            sections at the beginning of chapter 641 is amended by striking
            out ``Agreement'' and inserting in lieu thereof ``Agreements''.
                (5) The item relating to section 7577 in the table of
            sections at the beginning of chapter 649 is amended by striking
            out ``Officers'' and inserting in lieu thereof ``officers''.
                (6) The center heading for part IV in the table of chapters
            at the beginning of subtitle D is amended by inserting a comma
            after ``SUPPLY''.

    SEC. 1504. MISCELLANEOUS AMENDMENTS TO ANNUAL DEFENSE AUTHORIZATION
                ACTS.

        (a) <<NOTE: Effective date. 10 USC 2701 note.>>  Public Law 103-
    337.--Effective as of October 5, 1994, and as if included therein as
    enacted, the National Defense Authorization Act for Fiscal Year 1995
    (Public Law 103-337) is amended as follows:
                (1) Section 322(1) (108 Stat. 2711) <<NOTE: 10 USC 2701.>>
            is amended by striking out ``Service'' in both sets of quoted
            matter and inserting in lieu thereof ``Services''.
                (2) Section 531(g)(2) (108 Stat. 2758) is amended by
            inserting ``item relating to section 1034 in the'' after
            ``The''.
                (3) Section 541(c)(1) <<NOTE: 10 USC 571 note.>>  is
            amended--
                        (A) in subparagraph (B), by inserting a comma after
                    ``chief warrant officer''; and
                        (B) in the matter after subparagraph (C), by
                    striking out ``this''.
                (4) Section 721(f)(2) (108 Stat. 2806) <<NOTE: 10 USC 1074
            note.>>  is amended by striking out ``revaluated'' and inserting
            in lieu thereof ``reevaluated''.
                (5) Section 722(d)(2) (108 Stat. 2808) <<NOTE: 10 USC 1074
            note.>>  is amended by striking out ``National Academy of
            Science'' and inserting in lieu thereof ``National Academy of
            Sciences''.
                (6) Section 904(d) (108 Stat. 2827) <<NOTE: 10 USC 10501
            note.>>  is amended by striking out ``subsection (c)'' the first
            place it appears and inserting in lieu thereof ``subsection
            (b)''.
                (7) Section 1202 (108 Stat. 2882) <<NOTE: 22 USC 5956.>>  is
            amended--
                        (A) by striking out ``(title XII of Public Law 103-
                    60'' and inserting in lieu thereof ``(title XII of
                    Public Law 103-160''; and
                        (B) in paragraph (2), by inserting ``in the first
                    sentence'' before ``and inserting in lieu thereof''.
                (8) Section 1312(a)(2) (108 Stat. 2894) <<NOTE: 10 USC
            123b.>>  is amended by striking out ``adding at the end'' and
            inserting in lieu thereof ``inserting after the item relating to
            section 123a''.
                (9) Section 2813(c) (108 Stat. 3055) <<NOTE: 10 USC 2687
            note.>>  is amended by striking out ``above paragraph (1)'' both
            places it appears and inserting in lieu thereof ``preceding
            subparagraph (A)''.

        (b) Public Law 103-160.--The National Defense Authorization Act for
    Fiscal Year 1994 (Public Law 103-160) is amended in section 1603(d) (22
    U.S.C. 2751 note)--
                (1) in the matter preceding paragraph (1), by striking out
            the second comma after ``Not later than April 30 of each year'';
                (2) in paragraph (4), by striking out ``contributes'' and
            inserting in lieu thereof ``contribute''; and
                (3) in paragraph (5), by striking out ``is'' and inserting
            in lieu thereof ``are''.

    [[Page 110 STAT. 514]]

        (c) Public Law 102-484.--The National Defense Authorization Act for
    Fiscal Year 1993 (Public Law 102-484) is amended as follows:
                (1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 2301 note)
            is amended by inserting ``report'' after ``each''.
                (2) Section 3163(1)(E) <<NOTE: 42 USC 7247j.>>  is amended
            by striking out ``paragraphs (1) through (4)'' and inserting in
            lieu thereof ``subparagraphs (A) through (D)''.
                (3) Section 4403(a) (10 U.S.C. 1293 note) is amended by
            striking out ``through 1995'' and inserting in lieu thereof
            ``through fiscal year 1999''.

        (d) Public Law 102-190.--Section 1097(d) of the National Defense
    Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190;
    105 Stat. 1490) <<NOTE: 22 USC 2751 note.>>  is amended by striking out
    ``the Federal Republic of Germany, France'' and inserting in lieu
    thereof ``France, Germany''.

    SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS.

        (a) Officer Personnel Act of 1947.--Section 437 of the Officer
    Personnel Act of 1947 <<NOTE: 10 USC 5401 note prec.>>  is repealed.

        (b) Title 5, United States Code.--Title 5, United States Code, is
    amended--
                (1) in section 8171--
                        (A) in subsection (a), by striking out ``903(3)''
                    and inserting in lieu thereof ``903(a)'';
                        (B) in subsection (c)(1), by inserting ``section''
                    before ``39(b)''; and
                        (C) in subsection (d), by striking out ``(33 U.S.C.
                    18 and 21, respectively)'' and inserting in lieu thereof
                    ``(33 U.S.C. 918 and 921)'';
                (2) in sections 8172 and 8173, by striking out ``(33 U.S.C.
            2(2))'' and inserting in lieu thereof ``(33 U.S.C. 902(2))'';
            and
                (3) in section 8339(d)(7), by striking out ``Court of
            Military Appeals'' and inserting in lieu thereof ``Court of
            Appeals for the Armed Forces''.

        (c) <<NOTE: Effective date.>>  Public Law 90-485.--Effective as of
    August 13, 1968, and as if included therein as originally enacted,
    section 1(6) of Public Law 90-485 (82 Stat. 753) <<NOTE: 10 USC 1436.>>
    is amended--
                (1) by striking out the close quotation marks after the end
            of clause (4) of the matter inserted by the amendment made by
            that section; and
                (2) by adding close quotation marks at the end.

        (d) Title 37, United States Code.--Section 406(b)(1)(E) of title 37,
    United States Code, is amended by striking out ``of this paragraph''.
        (e) Base Closure Laws.--(1) The Defense Base Closure and Realignment
    Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
    note) is amended--
                (A) in section 2905(b)(1)(C), by striking out ``of the
            Administrator to grant approvals and make determinations under
            section 13(g) of the Surplus Property Act of 1944 (50 U.S.C.
            App. 1622(g))'' and inserting in lieu thereof ``to dispose of
            surplus property for public airports under sections 47151
            through 47153 of title 49, United States Code'';
                (B) in section 2906(d)(1), by striking out ``section
            204(b)(4)(C)'' and inserting in lieu thereof ``section
            204(b)(7)(C)''; and

    [[Page 110 STAT. 515]]

                (C) in section 2910--
                        (i) by designating the second paragraph (10), as
                    added by section 2(b) of the Base Closure Community
                    Redevelopment and Homeless Assistance Act of 1994
                    (Public Law 103-421; 108 Stat. 4352), as paragraph (11);
                    and
                        (ii) in such paragraph, as so designated, by
                    striking out ``section 501(h)(4) of the Stewart B.
                    McKinney Homeless Assistance Act (42 U.S.C.
                    11411(h)(4))'' and inserting in lieu thereof ``section
                    501(i)(4) of the Stewart B. McKinney Homeless Assistance
                    Act (42 U.S.C. 11411(i)(4))''.

        (2) Section 2921(d)(1) of the National Defense Authorization Act for
    Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note) is amended by
    striking out ``section 204(b)(4)(C)'' and inserting in lieu thereof
    ``section 204(b)(7)(C)''.
        (3) Section 204 of the Defense Authorization Amendments and Base
    Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note) is
    amended--
                (A) in subsection (b)(1)(C), by striking out ``of the
            Administrator to grant approvals and make determinations under
            section 13(g) of the Surplus Property Act of 1944 (50 U.S.C.
            App. 1622(g))'' and inserting in lieu thereof ``to dispose of
            surplus property for public airports under sections 47151
            through 47153 of title 49, United States Code''; and
                (B) in subsection (b)(7)(A)(i), by striking out ``paragraph
            (3)'' and inserting in lieu thereof ``paragraphs (3) through
            (6)''.

        (f) Public Law 103-421.--Section 2(e)(5) of Public Law 103-421 (108
    Stat. 4354) <<NOTE: 10 USC 2687 note.>>  is amended--
                (1) by striking out ``(A)'' after ``(5)''; and
                (2) by striking out ``clause'' in subparagraph (B)(iv) and
            inserting in lieu thereof ``clauses''.

        (g) Atomic Energy Act.--Section 123a. of the Atomic Energy Act (42
    U.S.C. 2153a.) <<NOTE: 42 USC 2153.>>  is amended by striking out
    ``144b., or 144d.'' and inserting ``, 144b., or 144d.''.

    SEC. 1506. <<NOTE: 10 USC 101 note.>>  COORDINATION WITH OTHER
                AMENDMENTS.

        For purposes of applying amendments made by provisions of this Act
    other than provisions of this title, this title shall be treated as
    having been enacted immediately before the other provisions of this Act.

    TITLE XVI-- <<NOTE: Corporation for the Promotion of Rifle Practice and
     Firearms Safety Act.>> CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE
    AND FIREARMS SAFETY

    SEC. 1601. <<NOTE: 36 USC 5501 note.>>  SHORT TITLE.

        This title may be cited as the ``Corporation for the Promotion of
    Rifle Practice and Firearms Safety Act''.

             Subtitle A--Establishment and Operation of Corporation

    SEC. 1611. <<NOTE: 36 USC 5501.>>  ESTABLISHMENT OF THE CORPORATION.

        (a) Establishment.--There is established a private, nonprofit
    corporation to be known as the ``Corporation for the Promotion

    [[Page 110 STAT. 516]]

    of Rifle Practice and Firearms Safety'' (in this title referred to as
    the ``Corporation'').
        (b) Private, Nonprofit Status.--(1) The Corporation shall not be
    considered to be a department, agency, or instrumentality of the Federal
    Government. An officer or employee of the Corporation shall not be
    considered to be an officer or employee of the Federal Government.
        (2) The Corporation shall be operated in a manner and for purposes
    that qualify the Corporation for exemption from taxation under section
    501(a) of the Internal Revenue Code of 1986 as an organization described
    in section 501(c)(3) of such Code.
        (c) Board of Directors.--(1) The Corporation shall have a Board of
    Directors consisting of not less than nine members.
        (2) The Board of Directors may adopt bylaws, policies, and
    procedures for the Corporation and may take any other action that the
    Board of Directors considers necessary for the management and operation
    of the Corporation.
        (3) Each member of the Board of Directors shall serve for a term of
    two years. Members of the Board of Directors are eligible for
    reappointment.
        (4) A vacancy on the Board of Directors shall be filled by a
    majority vote of the remaining members of the Board.
        (5) The Secretary of the Army shall appoint the initial Board of
    Directors. Four of the members of the initial Board of Directors, to be
    designated by the Secretary at the time of appointment, shall
    (notwithstanding paragraph (3)) serve for a term of one year.
        (d) Director of Civilian Marksmanship.--(1) The Board of Directors
    shall appoint an individual to serve as the Director of Civilian
    Marksmanship.
        (2) The Director shall be responsible for the performance of the
    daily operations of the Corporation and the functions described in
    section 1612.

    SEC. 1612. <<NOTE: 36 USC 5502.>>  CONDUCT OF CIVILIAN MARKSMANSHIP
                PROGRAM.

        (a) Functions.--The Corporation shall have responsibility for the
    overall supervision, oversight, and control of the Civilian Marksmanship
    Program, pursuant to the transfer of the program under subsection (d),
    including the performance of the following:
                (1) The instruction of citizens of the United States in
            marksmanship.
                (2) The promotion of practice and safety in the use of
            firearms, including the conduct of matches and competitions in
            the use of those firearms.
                (3) The award to competitors of trophies, prizes, badges,
            and other insignia.
                (4) The provision of security and accountability for all
            firearms, ammunition, and other equipment under the custody and
            control of the Corporation.
                (5) The issue, loan, or sale of firearms, ammunition,
            supplies, and appliances under section 1614.
                (6) The procurement of necessary supplies, appliances,
            clerical services, other related services, and labor to carry
            out the Civilian Marksmanship Program.

        (b) Priority for Youth Activities.--In carrying out the Civilian
    Marksmanship Program, the Corporation shall give priority to activities
    that benefit firearms safety, training, and competition for youth and
    that reach as many youth participants as possible.

    [[Page 110 STAT. 517]]

        (c) Access to Surplus Property.--(1) The Corporation may obtain
    surplus property and supplies from the Defense Reutilization Marketing
    Service to carry out the Civilian Marksmanship Program.
        (2) Any transfer of property and supplies to the Corporation under
    paragraph (1) shall be made without cost to the Corporation.
        (d) Transfer of Civilian Marksmanship Program to Corporation.--(1)
    The Secretary of the Army shall provide for the transition of the
    Civilian Marksmanship Program, as defined in section 4308(e) of title
    10, United States Code (as such section was in effect on the day before
    the date of the enactment of this Act), from conduct by the Department
    of the Army to conduct by the Corporation. The transition shall be
    completed not later than September 30, 1996.
        (2) To carry out paragraph (1), the Secretary shall provide such
    assistance and take such action as is necessary to maintain the
    viability of the program and to maintain the security of firearms,
    ammunition, and other property that are transferred or reserved for
    transfer to the Corporation under section 1615, 1616, or 1621.
    SEC. 1613. <<NOTE: 36 USC 5503.>>  ELIGIBILITY FOR PARTICIPATION
                              IN CIVILIAN MARKSMANSHIP PROGRAM.

        (a) Certification Requirement.--(1) Before a person may participate
    in any activity sponsored or supported by the Corporation, the person
    shall be required to certify by affidavit the following:
                (A) The person has not been convicted of any Federal or
            State felony or violation of section 922 of title 18, United
            States Code.
                (B) The person is not a member of any organization that
            advocates the violent overthrow of the United States Government.

        (2) The Director of Civilian Marksmanship may require any person to
    attach to the person's affidavit a certification
    from the appropriate State or Federal law enforcement agency for
    purposes of paragraph (1)(A).

        (b) Ineligibility Resulting From Certain Convictions.--A person who
    has been convicted of a Federal or State felony or a violation of
    section 922 of title 18, United States Code, shall not be eligible to
    participate in any activity sponsored or supported by the Corporation
    through the Civilian Marksmanship Program.
        (c) Authority To Limit Participation.--The Director of Civilian
    Marksmanship may limit participation as necessary to ensure--
                (1) quality instruction in the use of firearms;
                (2) the safety of participants; and
                (3) the security of firearms, ammunition, and equipment.
    SEC. 1614. <<NOTE: 36 USC 5504.>>  ISSUANCE, LOAN, AND SALE OF
                              FIREARMS AND AMMUNITION BY THE
                              CORPORATION.

        (a) Issuance and Loan.--For purposes of training and competition,
    the Corporation may issue or loan, with or without charges to recover
    administrative costs, caliber .22 rimfire and caliber .30 surplus
    rifles, caliber .22 and .30 ammunition, air rifles, targets, and other
    supplies and appliances necessary for activities related to the Civilian
    Marksmanship Program to the following:
                (1) Organizations affiliated with the Corporation that
            provide training in the use of firearms to youth.
                (2) The Boy Scouts of America.
                (3) 4-H Clubs.

    [[Page 110 STAT. 518]]

                (4) Future Farmers of America.
                (5) Other youth-oriented organizations.

        (b) Sales.--(1) The Corporation may sell at fair market value
    caliber .22 rimfire and caliber .30 surplus rifles, caliber .22 and .30
    ammunition, air rifles, repair parts, and accouterments to organizations
    affiliated with the Corporation that provide training in the use of
    firearms.
        (2) Subject to subsection (e), the Corporation may sell at fair
    market value caliber .22 rimfire and caliber .30 surplus rifles,
    ammunition, targets, repair parts and accouterments, and other supplies
    and appliances necessary for target practice to citizens of the United
    States over 18 years of age who are members of a gun club affiliated
    with the Corporation. <<NOTE: Procedures. Law enforcement and crime.>>
    In addition to any other requirement, the Corporation shall establish
    procedures to obtain a criminal records check of the person with
    appropriate Federal and State law enforcement agencies.

        (c) Limitations on Sales.--(1) The Corporation may not offer for
    sale any repair part designed to convert any firearm to fire in a fully
    automatic mode.
        (2) The Corporation may not sell rifles, ammunition, or any other
    item available for sale to individuals under the Civilian Marksmanship
    Program to a person who has been convicted of a felony or a violation of
    section 922 of title 18, United States Code.
        (d) Oversight and Accountability.--The Corporation shall be
    responsible for ensuring adequate oversight and accountability of all
    firearms issued or loaned under this section. The Corporation shall
    prescribe procedures for the security of issued or loaned firearms in
    accordance with Federal, State, and local laws.
        (e) Applicability of Other Law.--(1) Subject to paragraph (2), sales
    under subsection (b)(2) are subject to applicable Federal, State, and
    local laws.
        (2) Paragraphs (1), (2), (3), and (5) of section 922(a) of title 18,
    United States Code, do not apply to the shipment, transportation,
    receipt, transfer, sale, issuance, loan, or delivery by the Corporation
    of any item that the Corporation is authorized to issue, loan, sell, or
    receive under this title.

    SEC. 1615. <<NOTE: 36 USC 5505.>>  TRANSFER OF FIREARMS AND AMMUNITION
                FROM THE ARMY TO THE CORPORATION.

        (a) Transfers Required.--The Secretary of the Army shall, in
    accordance with subsection (b), transfer to the Corporation all firearms
    and ammunition that on the day before the date of the enactment of this
    Act are under the control of the Director of the Civilian Marksmanship
    Program, including--
                (1) all firearms on loan to affiliated clubs and State
            associations;
                (2) all firearms in the possession of the Civilian
            Marksmanship Support Detachment; and
                (3) all M-1 Garand and caliber .22 rimfire rifles stored at
            Anniston Army Depot, Anniston, Alabama.

        (b) Time for Transfer.--The Secretary shall transfer firearms and
    ammunition under subsection (a) as and when necessary to enable the
    Corporation--
                (1) to issue or loan such items in accordance with section
            1614(a); or

    [[Page 110 STAT. 519]]

                (2) to sell such items to purchasers in accordance with
            section 1614(b).

        (c) Parts.--The Secretary may make available to the Corporation any
    part from a rifle designated to be demilitarized in the inventory of the
    Department of the Army.
        (d) Vesting of Title in Transferred Items.--Title to an item
    transferred to the Corporation under this section shall vest in the
    Corporation--
                (1) upon the issuance of the item to a recipient eligible
            under section 1614(a) to receive the item; or
                (2) immediately before the Corporation delivers the item to
            a purchaser of the item in accordance with a contract for a sale
            of the item that is authorized under section 1614(b).

        (e) Costs of Transfers.--Any transfer of firearms, ammunition, or
    parts to the Corporation under this section shall be made without cost
    to the Corporation, except that the Corporation shall assume the cost of
    preparation and transportation of firearms and ammunition transferred
    under this section.
    SEC. 1616. <<NOTE: 36 USC 5506.>>  RESERVATION BY THE ARMY OF
                              FIREARMS AND AMMUNITION FOR THE
                              CORPORATION.

        (a) Reservation of Firearms and Ammunition.--The Secretary of the
    Army shall reserve for the Corporation the following:
                (1) All firearms referred to in section 1615(a).
                (2) Ammunition for such firearms.
                (3) All M-16 rifles used to support the small arms firing
            school that are held by the Department of the Army on the date
            of the enactment of this Act.
                (4) Any parts from, and accessories and accouterments for,
            surplus caliber .30 and caliber .22 rimfire rifles.

        (b) Storage of Firearms and Ammunition.--Firearms stored at Anniston
    Army Depot, Anniston, Alabama, before the date of the enactment of this
    Act and used for the Civilian Marksmanship Program shall remain at that
    facility, or another storage facility designated by the Secretary of the
    Army, without cost to the Corporation, until the firearms are issued,
    loaned, or sold by, or otherwise transferred to, the Corporation.
        (c) Limitation on Demilitarization of M-1 Rifles.--After the date of
    the enactment of this Act, the Secretary may not demilitarize any M-1
    Garand rifle in the inventory of the Army unless that rifle is
    determined by the Defense Logistics Agency to be unserviceable.
        (d) Exception for Transfers to Federal and State Agencies for
    Counterdrug Purposes.--The requirement specified in subsection (a) does
    not supersede the authority provided in section 1208 of the National
    Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law
    101-189; 10 U.S.C. 372 note).

    SEC. 1617. <<NOTE: 36 USC 5507.>>  ARMY LOGISTICAL SUPPORT FOR THE
                PROGRAM.

        (a) Logistical Support.--The Secretary of the Army shall provide
    logistical support to the Civilian Marksmanship Program and for
    competitions and other activities conducted by the Corporation. The
    Corporation shall reimburse the Secretary for incremental direct costs
    incurred in providing such support. Such reimbursements shall be
    credited to the appropriations account of the Department of the Army
    that is charged to provide such support.
        (b) Reserve Component Personnel.--The Secretary shall provide,
    without cost to the Corporation, for the use of members

    [[Page 110 STAT. 520]]

    of the National Guard and Army Reserve to support the National Matches
    as part of the performance of annual training pursuant to titles 10 and
    32, United States Code.
        (c) Use of Department of Defense Facilities for National Matches.--
    The National Matches may continue to be held at those Department of
    Defense facilities at which the National Matches were held before the
    date of the enactment of this Act.
        (d) Regulations.--The Secretary shall prescribe regulations to carry
    out this section.

    SEC. 1618. <<NOTE: 36 USC 5508.>>  GENERAL AUTHORITIES OF THE
                CORPORATION.

        (a) Donations and Fees.--(1) The Corporation may solicit, accept,
    hold, use, and dispose of donations of money, property, and services
    received by gift, devise, bequest, or otherwise.
        (2) The Corporation may impose, collect, and retain such fees as are
    reasonably necessary to cover the direct and indirect costs of the
    Corporation to carry out the Civilian Marksmanship Program.
        (3) Amounts collected by the Corporation under the authority of this
    subsection, including the proceeds from the sale of firearms,
    ammunition, targets, and other supplies and appliances, may be used only
    to support the Civilian Marksmanship Program.
        (b) Corporate Seal.--The Corporation may adopt, alter, and use a
    corporate seal, which shall be judicially noticed.
        (c) Contracts.--The Corporation may enter into contracts, leases,
    agreements, or other transactions.
        (d) Obligations and Expenditures.--The Corporation may determine the
    character of, and necessity for, its obligations and expenditures and
    the manner in which they shall be incurred, allowed, and paid and may
    incur, allow, and pay such obligations and expenditures.
        (e) Related Authority.--The Corporation may take such other actions
    as are necessary or appropriate to carry out the authority provided in
    this section.
    SEC. 1619. <<NOTE: 36 USC 5509.>>  DISTRIBUTION OF CORPORATE
                              ASSETS IN EVENT OF DISSOLUTION.

        (a) Distribution.--If the Corporation dissolves, then--
                (1) upon the dissolution of the Corporation, title to all
            firearms stored at Anniston Army Depot, Anniston, Alabama, on
            the date of the dissolution, all M-16 rifles that are
            transferred to the Corporation under section 1615(a)(2), that
            are referred to in section 1616(a)(3), or that are otherwise
            under the control of the Corporation, and all trophies received
            by the Corporation from the National Board for the Promotion of
            Rifle Practice as of such date, shall vest in the Secretary of
            the Army, and the Secretary shall have the immediate right to
            the possession of such items;
                (2) assets of the Corporation, other than assets described
            in paragraph (1), may be distributed by the Corporation to an
            organization that--
                        (A) is exempt from taxation under section 501(a) of
                    the Internal Revenue Code of 1986 as an organization
                    described in section 501(c)(3) of such Code; and
                        (B) performs functions similar to the functions
                    described in section 1612(a); and
                (3) all assets of the Corporation that are not distributed
            pursuant to paragraphs (1) and (2) shall be sold, and the

    [[Page 110 STAT. 521]]

            proceeds from the sale of such assets shall be deposited in the
            Treasury.

        (b) Prohibition.--Assets of the Corporation that are distributed
    pursuant to the authority of subsection (a) may not be distributed to an
    individual.

                       Subtitle B--Transitional Provisions

    SEC. 1621. <<NOTE: 36 USC 5521.>>  TRANSFER OF FUNDS AND PROPERTY
                              TO THE CORPORATION.

        (a) Funds.--(1) On the date of the submission of a certification in
    accordance with section 1623 or, if earlier, October 1, 1996, the
    Secretary of the Army shall transfer to the Corporation--
                (A) the amounts that are available to the National Board for
            the Promotion of Rifle Practice from sales programs and fees
            collected in connection with competitions sponsored by the
            Board; and
                (B) all funds that are in the nonappropriated fund account
            known as the National Match Fund.

        (2) The funds transferred under paragraph (1)(A) shall be used to
    carry out the Civilian Marksmanship Program.
        (3) Transfers under paragraph (1)(B) shall be made without cost to
    the Corporation.
        (b) Property.--The Secretary of the Army shall, as soon as
    practicable, transfer to the Corporation the following:
                (1) All automated data equipment, all other office
            equipment, targets, target frames, vehicles, and all other
            property under the control of the Director of Civilian
            Marksmanship and the Civilian Marksmanship Support Detachment on
            the day before the date of the enactment of this Act (other than
            property to which section 1615(a) applies).
                (2) Title to property under the control of the National
            Match Fund on such day.
                (3) All supplies and appliances under the control of the
            Director of the Civilian Marksmanship Program on such day.

        (c) Offices.--The Corporation may use the office space of the Office
    of the Director of Civilian Marksmanship until the date on which the
    Secretary of the Army completes the transfer of the Civilian
    Marksmanship Program to the Corporation. The Corporation shall assume
    control of the leased property occupied as of the date of the enactment
    of this Act by the Civilian Marksmanship Support Detachment, located at
    the Erie Industrial Park, Port Clinton, Ohio.
        (d) Costs of Transfers.--Any transfer of items to the Corporation
    under this section shall be made without cost to the Corporation.
    SEC. 1622. <<NOTE: 36 USC 5522.>>  CONTINUATION OF ELIGIBILITY FOR
                              CERTAIN CIVIL SERVICE BENEFITS FOR
                              FORMER FEDERAL EMPLOYEES OF CIVILIAN
                              MARKSMANSHIP PROGRAM.

        (a) Continuation of Eligibility.--Notwithstanding any other
    provision of law, a Federal employee who is employed by the Department
    of Defense to support the Civilian Marksmanship Program as of the day
    before the date of the transfer of the Program to the Corporation and is
    offered employment by the Corporation as part of the transition
    described in section 1612(d) may, if the

    [[Page 110 STAT. 522]]

    employee becomes employed by the Corporation, continue to be eligible
    during continuous employment with the Corporation for the Federal
    health, retirement, and similar benefits (including life insurance) for
    which the employee would have been eligible had the employee continued
    to be employed by the Department of Defense. The employer's contribution
    for such benefits shall be paid by the Corporation.
        (b) Regulations.--The Director of the Office of Personnel Management
    shall prescribe regulations to carry out subsection (a).

    SEC. 1623. <<NOTE: 36 USC 5523.>>  CERTIFICATION OF COMPLETION OF
                TRANSITION.

        (a) Certification Requirement.--Upon completion of the appointment
    of the Board of Directors for the Corporation under section 1611(c)(5)
    and of the transition required under section 1612(d), the Secretary of
    the Army shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    certification of the completion of such actions.
        (b) <<NOTE: Federal Register, publication.>>  Publication of
    Certification.--The Secretary shall take such actions as are necessary
    to ensure that the certification is published in the Federal Register
    promptly after the submission of the certification under subsection (a).
    SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN
                              MARKSMANSHIP PROGRAM BY THE ARMY.

        (a) Repeals.--(1) Sections 4307, 4308, 4310, and 4311 of title 10,
    United States Code, are repealed.
        (2) The table of sections at the beginning of chapter 401 of such
    title is amended by striking out the items relating to sections 4307,
    4308, 4310, and 4311.
        (b) Conforming Amendments.--(1) Section 4313 of title 10, United
    States Code, is amended--
                (A) by striking out subsection (b); and
                (B) in subsection (a)--
                        (i) by striking out ``(a) Junior Competitors.--''
                    and inserting in lieu thereof ``(a) Allowances for
                    Participation of Junior Competitors.--''; and
                        (ii) in paragraph (3), by striking out ``(3) For the
                    purposes of this subsection'' and inserting in lieu
                    thereof ``(b) Junior Competitor Defined.--For the
                    purposes of subsection (a)''.

        (2) Section 4316 of such title is amended by striking out ``,
    including fees charged and amounts collected pursuant to subsections (b)
    and (c) of section 4308,''.
        (3) Section 925(a)(2)(A) of title 18, United States Code, is amended
    by inserting after ``section 4308 of title 10'' the following: ``before
    the repeal of such section by section 1624(a) of the Corporation for the
    Promotion of Rifle Practice and Firearms Safety Act''.
        (c) <<NOTE: 10 USC 4313 note.>>  Effective Date.--The amendments
    made by this section shall take effect on the earlier of--
                (1) the date on which the Secretary of the Army submits a
            certification in accordance with section 1623; or
                (2) October 1, 1996.

    [[Page 110 STAT. 523]]

     DIVISION B <<NOTE: Military Construction Authorization Act for Fiscal
    Year 1996.>> --MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 1996''.

                                 TITLE XXI--ARMY

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), 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..........................  Fort Rucker..........      $5,900,000
                                       Redstone Arsenal.....      $5,000,000
    Arizona..........................  Fort Huachuca........     $16,000,000
    California.......................  Fort Irwin...........     $25,500,000
                                       Presidio of San            $3,000,000
                                        Francisco.
    Colorado.........................  Fort Carson..........     $30,850,000
    District of Columbia.............  Fort McNair..........     $13,500,000
    Georgia..........................  Fort Benning.........     $37,900,000
                                       Fort Gordon..........      $5,750,000
                                       Fort Stewart.........      $8,400,000
    Hawaii...........................  Schofield Barracks...     $30,000,000
    Kansas...........................  Fort Riley...........      $7,000,000
    Kentucky.........................  Fort Campbell........     $10,000,000
                                       Fort Knox............      $5,600,000
    New Jersey.......................  Picatinny Arsenal....      $5,500,000
    New Mexico.......................  White Sands Missile        $2,050,000
                                        Range.
    New York.........................  Fort Drum............      $8,800,000
                                       United States              $8,300,000
                                        Military Academy.
                                       Watervliet Arsenal...        $680,000
    North Carolina...................  Fort Bragg...........     $29,700,000
    Oklahoma.........................  Fort Sill............     $14,300,000
    South Carolina...................  Naval Weapons             $25,700,000
                                        Station, Charleston.
                                       Fort Jackson.........     $32,000,000
    Texas............................  Fort Hood............     $32,500,000
                                       Fort Bliss...........     $56,900,000
                                       Fort Sam Houston.....      $7,000,000
    Virginia.........................  Fort Eustis..........     $16,400,000
    Washington.......................  Fort Lewis...........     $32,100,000
    CONUS Classified.................  Classified Location..      $1,900,000
                                                             ---------------
                                           Total:...........    $478,230,000

    ------------------------------------------------------------------------

        (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

    [[Page 110 STAT. 524]]

    the United States, and in the amounts, set forth in the following table:

                         Army: Outside the United States
    ------------------------------------------------------------------------
                                          Installation or
                 Country                      location            Amount
    ------------------------------------------------------------------------
    Korea............................  Camp Casey...........      $4,150,000
                                       Camp Hovey...........     $13,500,000
                                       Camp Pelham..........      $5,600,000
                                       Camp Stanley.........      $6,800,000
                                       Yongsan..............      $4,500,000
    Overseas Classified..............  Classified Location..     $48,000,000
    Worldwide........................  Host Nation Support..     $20,000,000
                                                             ---------------
                                           Total:...........    $102,550,000

    ------------------------------------------------------------------------

    SEC. 2102. FAMILY HOUSING.

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

                                                  Army: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                          Installation                   Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Kentucky................................  Fort Knox.................  150 units.................     $19,000,000
    New York................................  United States Military      119 units.................     $16,500,000
                                               Academy, West Point......
    Virginia................................  Fort Lee..................  135 units.................     $19,500,000
    Washington..............................  Fort Lewis................  84 units..................     $10,800,000
                                                                                                     ---------------
                                                                              Total:................     $65,800,000

    ----------------------------------------------------------------------------------------------------------------

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

    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 in an amount not to exceed $48,856,000.

    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) In General.--Subject to subsection (c), funds are hereby
    authorized to be appropriated for fiscal years beginning after September
    30, 1995, for military construction, land acquisition, and military
    family housing functions of the Department of the Army in the total
    amount of $2,147,427,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $478,230,000.

    [[Page 110 STAT. 525]]

                (2) For military construction projects outside the United
            States authorized by section 2101(b), $102,550,000.
                (3) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $9,000,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $34,194,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvements of military family housing and
                    facilities, $116,656,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,337,596,000.
                (6) For the Homeowners Assistance Program, as authorized by
            section 2832 of title 10, United States Code, $75,586,000, to
            remain available until expended.

        (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 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 (6) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced by
    $6,385,000, which represents the combination of project savings
    resulting from favorable bids, reduced overhead costs, and cancellations
    due to force structure changes.

                                TITLE XXII--NAVY

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(1), and, in
    the case of the project described in section 2204(b)(2), other amounts
    appropriated pursuant to authorizations enacted after this Act for that
    project, 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
    ------------------------------------------------------------------------
    California.......................  Marine Corps Air-          $2,490,000
                                        Ground Combat
                                        Center, Twentynine
                                        Palms...............
                                       Marine Corps Base,        $27,584,000
                                        Camp Pendleton......
                                       Naval Command,             $3,170,000
                                        Control, and Ocean
                                        Surveillance Center,
                                        San Diego...........
                                       Naval Air Station,         $7,600,000
                                        Lemoore.............
                                       Naval Air Station,        $99,150,000
                                        North Island........
                                       Naval Air Warfare          $3,700,000
                                        Center Weapons
                                        Division, China Lake

    [[Page 110 STAT. 526]]

                                       Naval Air Warfare          $1,300,000
                                        Center Weapons
                                        Division, Point Mugu
                                       Naval Construction        $16,700,000
                                        Batallion Center,
                                        Port Hueneme........
                                       Naval Station, San        $19,960,000
                                        Diego...............
    Florida..........................  Naval School              $16,150,000
                                        Explosive Ordinance
                                        Disposal, Eglin Air
                                        Force Base..........
                                       Naval Technical            $2,565,000
                                        Training Center,
                                        Corry Station,
                                        Pensacola...........
    Georgia..........................  Strategic Weapons          $2,450,000
                                        Facility, Atlantic,
                                        Kings Bay...........
    Hawaii...........................  Honolulu Naval             $1,980,000
                                        Computer and
                                        Telecommunications
                                        Area, Master Station
                                        Eastern Pacific.....
                                       Intelligence Center        $2,200,000
                                        Pacific, Pearl
                                        Harbor..............
                                       Naval Submarine Base,     $22,500,000
                                        Pearl Harbor........
    Illinois.........................  Naval Training            $12,440,000
                                        Center, Great Lakes.
    Indiana..........................  Crane Naval Surface        $3,300,000
                                        Warfare Center......
    Maryland.........................  Naval Academy,             $3,600,000
                                        Annapolis...........
    New Jersey.......................  Naval Air Warfare          $1,700,000
                                        Center Aircraft
                                        Division, Lakehurst.
    North Carolina...................  Marine Corps Air          $11,430,000
                                        Station, Cherry
                                        Point...............
                                       Marine Corps Air          $14,650,000
                                        Station, New River..
                                       Marine Corps Base,        $59,300,000
                                        Camp LeJeune........
    Pennsylvania.....................  Philadelphia Naval         $6,000,000
                                        Shipyard............
    South Carolina...................  Marine Corps Air          $15,000,000
                                        Station, Beaufort...
    Texas............................  Naval Air Station,         $4,400,000
                                        Corpus Christi......
                                       Naval Air Station,         $2,710,000
                                        Kingsville..........
                                       Naval Station,             $2,640,000
                                        Ingleside...........
    Virginia.........................  Fleet and Industrial       $8,390,000
                                        Supply Center,
                                        Williamsburg........
                                       Henderson Hall,            $1,900,000
                                        Arlington...........
                                       Marine Corps Combat        $3,500,000
                                        Development Command,
                                        Quantico............
                                       Naval Hospital,            $9,500,000
                                        Portsmouth..........
                                       Naval Station,            $10,580,000
                                        Norfolk.............
                                       Naval Weapons              $1,300,000
                                        Station, Yorktown...
    Washington.......................  Naval Undersea             $5,300,000
                                        Warfare Center
                                        Division, Keyport...
                                       Puget Sound Naval         $19,870,000
                                        Shipyard, Bremerton.
    West Virginia....................  Naval Security Group       $7,200,000
                                        Detachment..........
    CONUS Classified.................  Classified Locations.      $1,200,000
                                                             ---------------
                                           Total:...........    $435,409,000

    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
    Guam.............................  Naval Computer and         $2,250,000
                                        Telecommunications
                                        Area, Master Station
                                        Western Pacific.....

    [[Page 110 STAT. 527]]

                                       Navy Public Works         $16,180,000
                                        Center, Guam........
    Italy............................  Naval Air Station,        $12,170,000
                                        Sigonella...........
                                       Naval Support             $24,950,000
                                        Activity, Naples....
    Puerto Rico......................  Naval Security Group       $2,200,000
                                        Activity, Sabana
                                        Seca................
                                       Naval Station,            $11,500,000
                                        Roosevelt Roads.....
                                                             ---------------
                                           Total............     $69,250,000

    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

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

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                          Installation                   Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    California..............................  Marine Corps Base, Camp     138 units.................     $20,000,000
                                               Pendleton................
                                              Marine Corps Base, Camp     Community Center..........      $1,438,000
                                               Pendleton................
                                              Marine Corps Base, Camp     Housing Office............        $707,000
                                               Pendleton................
                                              Naval Air Station, Lemoore  240 units.................     $34,900,000
                                              Pacific Missile Test        Housing Office............      $1,020,000
                                               Center, Point Mugu.......
                                              Public Works Center, San    346 units.................     $49,310,000
                                               Diego....................
    Hawaii..................................  Naval Complex, Oahu.......  252 units.................     $48,400,000
    Maryland................................  Naval Air Test Center,      Warehouse.................        $890,000
                                               Patuxent River...........
                                              US Naval Academy,           Housing Office............        $800,000
                                               Annapolis................
    North Carolina..........................  Marine Corps Air Station,   Community Center..........      $1,003,000
                                               Cherry Point.............
    Pennsylvania............................  Navy Ships Parts Control    Housing Office............        $300,000
                                               Center, Mechanicsburg....
    Puerto Rico.............................  Naval Station, Roosevelt    Housing Office............        $710,000
                                               Roads....................
    Virginia................................  Naval Surface Warfare       Housing Office............        $520,000
                                               Center, Dahlgren.........
                                              Public Works Center,        320 units.................     $42,500,000
                                               Norfolk..................
                                              Public Works Center,        Housing Office............      $1,390,000
                                               Norfolk..................
    West Virginia...........................  Security Group Naval         23 units.................      $3,590,000
                                               Detachment, Sugar Grove..
                                                                                                     ---------------
                                                                              Total:................    $207,478,000

    ----------------------------------------------------------------------------------------------------------------

    [[Page 110 STAT. 528]]

        (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
    $24,390,000.

    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 $290,831,000.

    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) In General.--Subject to subsection (c), funds are hereby
    authorized to be appropriated for fiscal years beginning after September
    30, 1995, for military construction, land acquisition, and military
    family housing functions of the Department of the Navy in the total
    amount of $2,119,317,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $427,709,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $69,250,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $7,200,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $50,515,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $522,699,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $1,048,329,000.

        (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); and
                (2) $7,700,000 (the balance of the amount authorized under
            section 2201(a) for the construction of a bachelor enlisted
            quarters at the Naval Construction Batallion Center, Port
            Hueneme, California).

        (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
    $6,385,000, which represents the combination of project savings
    resulting from favorable bids, reduced overhead costs, and cancellations
    due to force structure changes.

    [[Page 110 STAT. 529]]

    SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF
                              APPROPRIATIONS TO CLARIFY AVAILABILITY
                              OF FUNDS FOR LARGE ANECHOIC CHAMBER
                              FACILITY, PATUXENT RIVER NAVAL WARFARE
                              CENTER, MARYLAND.

        Section 2204(a) of the Military Construction Authorization Act for
    Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3033) is
    amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``$1,591,824,000'' and inserting in lieu thereof
            ``$1,601,824,000''; and
                (2) by adding at the end the following:
                ``(6) For the construction of the large anechoic chamber
            facility at the Patuxent River Naval Warfare Center, Aircraft
            Division, Maryland, authorized by section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 1993
            (division B of Public Law 102-484; 106 Stat. 2590),
            $10,000,000.''.
    SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT,
                              HAMPTON ROADS, VIRGINIA.

        The table in section 2201(a) of the Military Construction
    Authorization Act for Fiscal Year 1993 (division B of Public Law 102-
    484; 106 Stat. 2589) is amended--
                (1) in the item relating to Damneck, Fleet Combat Training
            Center, Virginia, by striking out ``$19,427,000'' in the amount
            column and inserting in lieu thereof ``$14,927,000''; and
                (2) by inserting after the item relating to Damneck, Fleet
            Combat Training Center, Virginia, the following new item:

    ------------------------------------------------------------------------

    ------------------------------------------------------------------------
                                     Hampton Roads..........      $4,500,000
    ------------------------------------------------------------------------

    SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON, VIRGINIA.

        (a) Authority To Acquire.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2204(a)(1), the Secretary
    of the Navy may acquire all right, title, and interest of any party in
    and to a parcel of real property, including an abandoned mausoleum,
    consisting of approximately 0.75 acres and located in Arlington,
    Virginia, the site of Henderson Hall.
        (b) Demolition of Mausoleum.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2204(a)(1), the Secretary
    may--
                (1) demolish the mausoleum located on the parcel acquired
            under subsection (a); and
                (2) provide for the removal and disposition in an
            appropriate manner of the remains contained in the mausoleum.

        (c) Authority To Design Public Works Facility.--Using amounts
    appropriated pursuant to the authorization of appropriations in section
    2204(a)(1), the Secretary may obtain architectural and engineering
    services and construction design for a warehouse and office facility for
    the Marine Corps to be constructed on the property acquired under
    subsection (a).
        (d) Description of Property.--The exact acreage and legal
    description of the real property authorized to be acquired under
    subsection (a) shall be determined by a survey that is satisfactory to
    the Secretary. The cost of the survey shall be borne by the Secretary.

    [[Page 110 STAT. 530]]

        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the acquisition under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY HOUSING
                              IN VICINITY OF SAN DIEGO, CALIFORNIA.

        (a) Authority To Use Litigation Proceeds.--Upon final settlement in
    the case of Rossmoor Liquidating Trust against United States, in the
    United States District Court for the Central District of California
    (Case No. CV 82-0956 LEW (Px)), the Secretary of the Treasury shall
    deposit in a separate account any funds paid to the United States in
    settlement of such case. At the request of the Secretary of the Navy,
    the Secretary of the Treasury shall make available amounts in the
    account to the Secretary of the Navy solely for the acquisition or
    construction of military family housing, including the acquisition of
    land necessary for such acquisition or construction, for members of the
    Armed Forces and their dependents stationed in, or in the vicinity of,
    San Diego, California. In using amounts in the account, the Secretary of
    the Navy may use the authorities provided in subchapter IV of chapter
    169 of title 10, United States Code, as added by section 2801 of this
    Act.
        (b) Units Authorized.--Not more than 150 military family housing
    units may be acquired or constructed with funds referred to in
    subsection (a). The units authorized by this subsection are in addition
    to any other units of military family housing authorized to be acquired
    or constructed in, or in the vicinity of, San Diego, California.
        (c) Payment of Excess Into Treasury.--The Secretary of the Treasury
    shall deposit into the Treasury as miscellaneous receipts funds referred
    to in subsection (a) that have not been obligated for construction under
    this section within four years after receipt thereof.
        (d) Limitation.--The Secretary may not enter into any contract for
    the acquisition or construction of military family housing under this
    section until after the expiration of the 21-day period beginning on the
    day after the day on which the Secretary transmits to the congressional
    defense committees a report containing the details of such contract.
        (e) Repeal of Existing Authority.--Section 2848 of the Military
    Construction Authorization Act for Fiscal Years 1990 and 1991 (division
    B of Public Law 101-189; 103 Stat. 1666) is repealed.

                             TITLE XXIII--AIR FORCE

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(1), and, in
    the case of the project described in section 2304(b)(2), other amounts
    appropriated pursuant to authorizations enacted after this Act for that
    project, 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:

    [[Page 110 STAT. 531]]

                       Air Force: Inside the United States
    ------------------------------------------------------------------------
                                          Installation or
                  State                       location            Amount
    ------------------------------------------------------------------------
    Alabama..........................  Maxwell Air Force          $5,200,000
                                        Base.
    Alaska...........................  Eielson Air Force          $7,850,000
                                        Base................
                                       Elmendorf Air Force        $9,100,000
                                        Base................
                                       Tin City Long Range        $2,500,000
                                        RADAR Site..........
    Arizona..........................  Davis-Monthan Air          $4,800,000
                                        Force Base.
                                       Luke Air Force Base..      $5,200,000
    Arkansas.........................  Little Rock Air Force      $2,500,000
                                        Base.
    California.......................  Beale Air Force Base.      $7,500,000
                                       Edwards Air Force         $33,800,000
                                        Base.
                                       Travis Air Force Base     $26,700,000
                                       Vandenberg Air Force       $6,000,000
                                        Base.
    Colorado.........................  Buckley Air National       $5,500,000
                                        Guard Base.
                                       Peterson Air Force         $4,390,000
                                        Base.
                                       US Air Force Academy.     $12,874,000
    Delaware.........................  Dover Air Force Base.      $5,500,000
    District of Columbia.............  Bolling Air Force         $12,100,000
                                        Base.
    Florida..........................  Cape Canaveral Air         $1,600,000
                                        Force Station.
                                       Eglin Air Force Base.     $13,500,000
                                       Tyndall Air Force          $1,200,000
                                        Base.
    Georgia..........................  Moody Air Force Base.     $25,190,000
                                       Robins Air Force Base     $12,400,000
    Hawaii...........................  Hickam Air Force Base     $10,700,000
    Idaho............................  Mountain Home Air         $18,650,000
                                        Force Base.
    Illinois.........................  Scott Air Force Base.     $12,700,000
    Kansas...........................  McConnell Air Force        $9,450,000
                                        Base.
    Louisiana........................  Barksdale Air Force        $2,500,000
                                        Base.
    Maryland.........................  Andrews Air Force         $12,886,000
                                        Base.
    Mississippi......................  Columbus Air Force         $1,150,000
                                        Base.
                                       Keesler Air Force          $6,500,000
                                        Base.
    Missouri.........................  Whiteman Air Force        $24,600,000
                                        Base.
    Nevada...........................  Nellis Air Force Base     $17,500,000
    New Jersey.......................  McGuire Air Force         $16,500,000
                                        Base.
    New Mexico.......................  Cannon Air Force Base     $13,420,000
                                       Holloman Air Force         $6,000,000
                                        Base.
                                       Kirtland Air Force         $9,156,000
                                        Base.
    North Carolina...................  Pope Air Force Base..      $8,250,000
                                       Seymour Johnson Air        $5,530,000
                                        Force Base.
    North Dakota.....................  Grand Forks Air Force     $14,800,000
                                        Base.
                                       Minot Air Force Base.      $1,550,000
    Ohio.............................  Wright Patterson Air       $4,100,000
                                        Force Base.
    Oklahoma.........................  Altus Air Force Base.      $4,800,000
                                       Tinker Air Force Base     $11,100,000
    South Carolina...................  Charleston Air Force      $12,500,000
                                        Base.
                                       Shaw Air Force Base..      $1,300,000
    South Dakota.....................  Ellsworth Air Force        $7,800,000
                                        Base.
    Tennessee........................  Arnold Air Force Base      $5,000,000
    Texas............................  Dyess Air Force Base.      $5,400,000
                                       Goodfellow Air Force       $1,000,000
                                        Base.
                                       Kelly Air Force Base.      $3,244,000
                                       Laughlin Air Force         $1,400,000
                                        Base.
                                       Randolph Air Force         $3,100,000
                                        Base.
                                       Sheppard Air Force         $1,500,000
                                        Base.
    Utah.............................  Hill Air Force Base..      $8,900,000
    Virginia.........................  Langley Air Force          $1,000,000
                                        Base.
    Washington.......................  Fairchild Air Force       $15,700,000
                                        Base.
                                       McChord Air Force          $9,900,000
                                        Base.
    Wyoming..........................  F.E. Warren Air Force      $9,000,000
                                        Base.

    [[Page 110 STAT. 532]]

    CONUS Classified.................  Classified Location..        $700,000
                                                             ---------------
                                           Total:...........    $504,690,000

    ------------------------------------------------------------------------

        (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 may 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.      $8,380,000
                                       Vogelweh Annex.......      $2,600,000
    Greece...........................  Araxos Radio Relay         $1,950,000
                                        Site.
    Italy............................  Aviano Air Base......      $2,350,000
                                       Ghedi Radio Relay          $1,450,000
                                        Site.
    Turkey...........................  Ankara Air Station...      $7,000,000
                                       Incirlik Air Base....      $4,500,000
    United Kingdom...................  Lakenheath Royal Air       $1,820,000
                                        Force Base..........
                                       Mildenhall Royal Air       $2,250,000
                                        Force Base.
    Overseas Classified..............  Classified Location..     $17,100,000
                                                             ---------------
                                           Total:...........     $49,400,000

    ------------------------------------------------------------------------

    SEC. 2302. FAMILY HOUSING.

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

                                                Air Force: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                  State/Country                      Installation                   Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska..................................  Elmendorf Air Force Base..  Housing Office/Maintenance      $3,000,000
                                                                           Facility.
    Arizona.................................  Davis-Monthan Air Force     80 units..................      $9,498,000
                                               Base.
    Arkansas................................  Little Rock Air Force Base  Replace 1 General Officer         $210,000
                                                                           Quarters.
    California..............................  Beale Air Force Base......  Family Housing Office.....        $842,000
                                              Edwards Air Force Base....  127 units.................     $20,750,000
                                              Vandenberg Air Force Base.  Family Housing Office.....        $900,000
                                              Vandenberg Air Force Base.  143 units.................     $20,200,000

    [[Page 110 STAT. 533]]

    Colorado................................  Peterson Air Force Base...  Family Housing Office.....        $570,000
    District of Columbia....................  Bolling Air Force Base....  32 units..................      $4,100,000
    Florida.................................  Eglin Air Force Base......  Family Housing Office.....        $500,000
                                              Eglin Auxiliary Field 9...  Family Housing Office.....        $880,000
                                              MacDill Air Force Base....  Family Housing Office.....        $646,000
                                              Patrick Air Force Base....  70 units..................      $7,947,000
                                              Tyndall Air Force Base....  82 units..................      $9,800,000
    Georgia.................................  Moody Air Force Base......  1 Officer & 1 General             $513,000
                                                                           Officer Quarter.
                                              Robins Air Force Base.....  83 units..................      $9,800,000
    Guam....................................  Andersen Air Force Base...  Housing Maintenance             $1,700,000
                                                                           Facility.
    Idaho...................................  Mountain Home Air Force     Housing Management                $844,000
                                               Base.                       Facility.
    Kansas..................................  McConnell Air Force Base..  39 units..................      $5,193,000
    Louisiana...............................  Barksdale Air Force Base..  62 units..................     $10,299,000
    Massachusetts...........................  Hanscom Air Force Base....  32 units..................      $4,900,000
    Mississippi.............................  Keesler Air Force Base....  98 units..................      $9,300,000
    Missouri................................  Whiteman Air Force Base...  72 units..................      $9,948,000
    Nevada..................................  Nellis Air Force Base.....  102 units.................     $16,357,000
    New Mexico..............................  Holloman Air Force Base...  1 General Officer Quarters        $225,000
                                              Kirtland Air Force Base...  105 units.................     $11,000,000
    North Carolina..........................  Pope Air Force Base.......  104 units.................      $9,984,000
                                              Seymour Johnson Air Force   1 General Officer Quarters        $204,000
                                               Base.
    South Carolina..........................  Shaw Air Force Base.......  Housing Maintenance               $715,000
                                                                           Facility.
    Texas...................................  Dyess Air Force Base......  Housing Maintenance               $580,000
                                                                           Facility.
                                              Lackland Air Force Base...  67 units..................      $6,200,000
                                              Sheppard Air Force Base...  Management Office.........        $500,000
                                              Sheppard Air Force Base...  Housing Maintenance               $600,000
                                                                           Facility.
    Turkey..................................  Incirlik Air Base.........  150 units.................     $10,146,000
    Washington..............................  McChord Air Force Base....  50 units..................      $9,504,000
                                                                                                     ---------------
                                                                              Total:................    $198,355,000

    ----------------------------------------------------------------------------------------------------------------

        (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
    $8,989,000.

    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

    [[Page 110 STAT. 534]]

    may improve existing military family housing units in an amount not to
    exceed $90,959,000.

    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) In General.--Subject to subsection (c), funds are hereby
    authorized to be appropriated for fiscal years beginning after September
    30, 1995, for military construction, land acquisition, and military
    family housing functions of the Department of the Air Force in the total
    amount of $1,735,086,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $504,690,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $49,400,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $9,030,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $30,835,000.
                (5) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design and improvement of military family housing and
                    facilities, $298,303,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $849,213,000.

        (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--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a); and
                (2) $5,400,000 (the balance of the amount authorized under
            section 2301(a) for the construction of a corrosion control
            facility at Tinker Air Force Base, Oklahoma).

        (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
    $6,385,000, which represents the combination of project savings
    resulting from favorable bids, reduced overhead costs, and cancellations
    due to force structure changes.
    SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED FOR
                              CONSTRUCTION OF FAMILY HOUSING, SCOTT
                              AIR FORCE BASE, ILLINOIS.

        (a) Retention of Interest.--Section 2310 of the Military
    Construction Authorization Act for Fiscal Year 1994 (division B of
    Public Law 103-160; 107 Stat. 1874) is amended--
                (1) by redesignating subsection (b) as subsection (c); and
                (2) by inserting after subsection (a) the following new
            subsection:

        ``(b) Retention of Interest.--Interest accrued on the funds
    transferred to the County pursuant to subsection (a) shall be retained
    in the same account as the transferred funds and shall be available to
    the County for the same purpose as the transferred funds.''.

    [[Page 110 STAT. 535]]

        (b) Limitation on Units Constructed.--Subsection (c) of such
    section, as redesignated by subsection (a)(1), is amended by adding at
    the end the following new sentence: ``The number of units constructed
    using the transferred funds (and interest accrued on such funds) may not
    exceed the number of units of military family housing authorized for
    Scott Air Force Base in section 2302(a) of the Military Construction
    Authorization Act for Fiscal Year 1993.''.
        (c) Effect of Completion of Construction.--Such section is further
    amended by adding at the end the following new subsection:
        ``(d) Completion of Construction.--Upon the completion of the
    construction authorized by this section, all funds remaining from the
    funds transferred pursuant to subsection (a), and the remaining interest
    accrued on such funds, shall be deposited in the general fund of the
    Treasury of the United States.''.
        (d) Reports on Accrued Interest.--Such section is further amended by
    adding at the end the following new subsection:
        ``(e) Reports on Accrued Interest.--Not later than March 1 of each
    year following a year in which funds available to the County under this
    section are used by the County for the purpose referred to in subsection
    (c), the Secretary shall submit to the congressional defense committees
    a report setting forth the amount of interest that accrued on such funds
    during the preceding year.''.

                          TITLE XXIV--DEFENSE AGENCIES

    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 2405(a)(1), and, in
    the case of the project described in section 2405(b)(2), other amounts
    appropriated pursuant to authorizations enacted after this Act for that
    project, 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/State                   location            Amount
    ------------------------------------------------------------------------
    Ballistic Missile Defense
     Organization
    Texas............................  Fort Bliss...........     $13,600,000

    Defense Finance & Accounting
     Service
    Ohio.............................  Columbus Center......     $72,403,000

    Defense Intelligence Agency
    District of Columbia.............  Bolling Air Force            $498,000
                                        Base................

    Defense Logistics Agency
    Alabama..........................  Defense Distribution       $3,550,000
                                        Anniston............
    California.......................  Defense Distribution      $15,000,000
                                        Stockton............

    [[Page 110 STAT. 536]]

                                       DFSC, Point Mugu.....        $750,000
    Delaware.........................  DFSC, Dover Air Force     $15,554,000
                                        Base................
    Florida..........................  DFSC, Eglin Air Force      $2,400,000
                                        Base................
    Louisiana........................  DFSC, Barksdale Air       $13,100,000
                                        Force Base..........
    New Jersey.......................  DFSC, McGuire Air         $12,000,000
                                        Force Base..........
    Pennsylvania.....................  Defense Distribution       $4,600,000
                                        New Cumberland--DDSP
    Virginia.........................  Defense Distribution      $10,400,000
                                        Depot--DDNV.........

    Defense Mapping Agency
    Missouri.........................  Defense Mapping           $40,300,000
                                        Agency Aerospace
                                        Center..............

    Defense Medical Facility Office
    Alabama..........................  Maxwell Air Force         $10,000,000
                                        Base................
    Arizona..........................  Luke Air Force Base..      $8,100,000
    California.......................  Fort Irwin...........      $6,900,000
                                       Marine Corps Base,         $1,700,000
                                        Camp Pendleton......
                                       Vandenberg Air Force       $5,700,000
                                        Base................
    Delaware.........................  Dover Air Force Base.      $4,400,000
    Georgia..........................  Fort Benning.........      $5,600,000
    Louisiana........................  Barksdale Air Force        $4,100,000
                                        Base................
    Maryland.........................  Bethesda Naval             $1,300,000
                                        Hospital............
                                       Walter Reed Army           $1,550,000
                                        Institute of
                                        Research............
    Texas............................  Fort Hood............      $5,500,000
                                       Lackland Air Force         $6,100,000
                                        Base................
    Virginia.........................  Northwest Naval            $4,300,000
                                        Security Group
                                        Activity............

    National Security Agency
    Maryland.........................  Fort Meade...........     $18,733,000

    Office of the Secretary of
     Defense
    Inside the United States.........  Classified location..     $11,500,000

    Department of Defense Dependents
     Schools
    Alabama..........................  Maxwell Air Force          $5,479,000
                                        Base................
    Georgia..........................  Fort Benning.........      $1,116,000
    South Carolina...................  Fort Jackson.........        $576,000

    Special Operations Command
    California.......................  Camp Pendleton.......      $5,200,000
    Florida..........................  Eglin Air Force Base       $2,400,000
                                        (Duke Field)........
                                       Eglin Auxiliary Field     $14,150,000
                                        9...................
    North Carolina...................  Fort Bragg...........     $23,800,000
    Pennsylvania.....................  Olmstead Field,            $1,643,000
                                        Harrisburg IAP......
    Virginia.........................  Dam Neck.............      $4,500,000
                                       Naval Amphibious           $6,100,000
                                        Base, Little Creek..
                                                             ---------------

                                           Total:...........    $364,602,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(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:

    [[Page 110 STAT. 537]]

                   Defense Agencies: Outside the United States
    ------------------------------------------------------------------------
              Agency/Country             Installation name        Amount
    ------------------------------------------------------------------------
    Defense Logistics Agency
    Puerto Rico......................  Defense Fuel Support       $6,200,000
                                        Point, Roosevelt
                                        Roads...............
    Spain............................  DFSC Rota............      $7,400,000

    Defense Medical Facility Office
    Italy............................  Naval Support              $5,000,000
                                        Activity, Naples....

    Department of Defense Dependents
     Schools
    Germany..........................  Ramstein Air Force        $19,205,000
                                        Base................
    Italy............................  Naval Air Station,         $7,595,000
                                        Sigonella...........

    National Security Agency
    United Kingdom...................  Menwith Hill Station.        $677,000

    Special Operations Command
    Guam.............................  Naval Station, Guam..      $8,800,000
                                                             ---------------
                                           Total:...........     $54,877,000
    ------------------------------------------------------------------------

    SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT.

        (a) Availability of Funds for Investment.--Of the amount authorized
    to be appropriated pursuant to section 2405(a)(11)(A), $22,000,000 shall
    be available for crediting to the Department of Defense Family Housing
    Improvement Fund established by section 2883(a)(1) of title 10, United
    States Code (as added by section 2801 of this Act).
        (b) Use of Funds.--The Secretary of Defense may use funds credited
    to the Department of Defense Family Housing Improvement Fund under
    subsection (a) to carry out any activities authorized by subchapter IV
    of chapter 169 of such title (as added by such section) with respect to
    military family housing.

    SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2405(a)(11)(A), the Secretary of Defense may improve existing
    military family housing units in an amount not to exceed $3,772,000.

    SEC. 2404. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(9), the Secretary of Defense may carry
    out energy conservation projects under section 2865 of title 10, United
    States Code.

    SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1995, 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 $4,629,491,000 as follows:

    [[Page 110 STAT. 538]]

                (1) For military construction projects inside the United
            States authorized by section 2401(a), $329,599,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(b), $54,877,000.
                (3) For military construction projects at Portsmouth Naval
            Hospital, Virginia, authorized by section 2401(a) of the
            Military Construction Authorization Act for Fiscal Years 1990
            and 1991 (division B of Public Law 101-189; 103 Stat. 1640),
            $47,900,000.
                (4) For military construction projects at Elmendorf Air
            Force Base, Alaska, hospital replacement, authorized by section
            2401(a) of the Military Construction Authorization Act for
            Fiscal Year 1993 (division B of Public Law 102-484; 106 Stat.
            2599), $28,100,000.
                (5) For military construction projects at Walter Reed Army
            Institute of Research, Maryland, hospital replacement,
            authorized by section 2401(a) of the Military Construction
            Authorization Act for Fiscal Year 1993 (division B of Public Law
            102-484; 106 Stat. 2599), $27,000,000.
                (6) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $23,007,000.
                (7) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $11,037,000.
                (8) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $68,837,000.
                (9) For energy conservation projects authorized by section
            2404, $40,000,000.
                (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), $3,897,892,000.
                (11) For military family housing functions:
                        (A) For construction and acquisition and improvement
                    of military family housing and facilities, $25,772,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $40,467,000, of which not more than
                    $24,874,000 may be obligated or expended for the leasing
                    of military family housing units worldwide.

        (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 variations authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a); and
                (2) $35,003,000 (the balance of the amount authorized under
            section 2401(a) for the construction of a center of the Defense
            Finance and Accounting Service at Columbus, Ohio).
    SEC. 2406. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE
                              CLOSURE ACCOUNT 1990.

        (a) Set Aside for 1995 Round.--Of the amounts appropriated pursuant
    to the authorization of appropriations in section 2405(a)(10),
    $784,569,000 shall be available only for the purposes described in
    section 2905 of the Defense Base Closure and Realign

    [[Page 110 STAT. 539]]

    ment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
    2687 note) with respect to military installations approved for closure
    or realignment in 1995.
        (b) Construction.--Amounts appropriated pursuant to the
    authorization of appropriations in section 2405(a)(10) may not be
    obligated to carry out a construction project with respect to military
    installations approved for closure or realignment in 1995 until after
    the date on which the Secretary of Defense submits to Congress a five-
    year program for executing the 1995 base realignment and closure plan.
    The limitation contained in this subsection shall not prohibit site
    surveys, environmental baseline surveys, environmental analysis under
    the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.),
    and planning and design work conducted in anticipation of such
    construction.
    SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT 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), 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 ``$3,000,000'' in the amount column and inserting
            in lieu thereof ``$115,000,000''; and
                (2) in the item relating to Umatilla Army Depot, Oregon, by
            striking out ``$12,000,000'' in the amount column and inserting
            in lieu thereof ``$186,000,000''.
    SEC. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR
                              FISCAL YEAR 1994 CONTINGENCY
                              CONSTRUCTION PROJECTS.

        Section 2403(a) of the Military Construction Authorization Act for
    Fiscal Year 1994 (division B of Public Law 103-160; 107 Stat. 1876) is
    amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``$3,268,394,000'' and inserting in lieu thereof
            ``$3,260,263,000''; and
                (2) in paragraph (10), by striking out ``$12,200,000'' and
            inserting in lieu thereof ``$4,069,000''.

          TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

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

        The Secretary of Defense may make contributions for the North
    Atlantic Treaty Organization Infrastructure 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, 1995, for contributions by the Sec

    [[Page 110 STAT. 540]]

    retary 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 Infrastructure program, as authorized by
    section 2501, in the amount of $161,000,000.

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

        There are authorized to be appropriated for fiscal years beginning
    after September 30, 1995, 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 133 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, $134,802,000; and
                        (B) for the Army Reserve, $73,516,000.
                (2) For the Department of the Navy, for the Naval and Marine
            Corps Reserve, $19,055,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United States,
                    $170,917,000; and
                        (B) for the Air Force Reserve, $36,232,000.
    SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPROPRIATED FOR
                              FISCAL YEAR 1994 AIR NATIONAL GUARD
                              PROJECTS.

        Section 2601(3)(A) of the Military Construction Authorization Act
    for Fiscal Year 1994 (division B of Public Law 103-160; 107 Stat. 1878)
    is amended by striking out ``$236,341,000'' and inserting in lieu
    thereof ``$229,641,000''.
    SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY
                              NATIONAL GUARD PROJECTS IN MISSISSIPPI.

        (a) In General.--Subject to subsection (b), amounts appropriated
    pursuant to the authorization of appropriations in section 2601(1)(A) of
    the Military Construction Authorization Act for Fiscal Year 1994
    (division B of Public Law 103-160; 107 Stat. 1878) for the addition or
    alteration of Army National Guard Armories at various locations in the
    State of Mississippi shall be available for the addition, alteration, or
    new construction of armory facilities and an operation and maintenance
    shop facility (including the acquisition of land for such facilities) at
    various locations in the State of Mississippi.
        (b) <<NOTE: Reports.>>  Notice and Wait.--The amounts referred to in
    subsection (a) shall not be available for construction with respect to a
    facility referred to in that subsection until 21 days after the date on
    which the Secretary of the Army submits to Congress a report describing
    the construction (including any land acquisition) to be carried out with
    respect to the facility.

    [[Page 110 STAT. 541]]

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

        (a) Expiration of Authorizations After Three Years.--Except as
    provided in subsection (b), all authorizations contained in titles XXI
    through XXVI for military construction projects, land acquisition,
    family housing projects and facilities, and contributions to the North
    Atlantic Treaty Organization Infrastructure program (and authorizations
    of appropriations therefor) shall expire on the later of--
                (1) October 1, 1998; or
                (2) the date of the enactment of an Act authorizing funds
            for military construction for fiscal year 1999.

        (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 Infrastructure program (and authorizations of
    appropriations therefor), for which appropriated funds have been
    obligated before the later of--
                (1) October 1, 1998; or
                (2) the date of the enactment of an Act authorizing funds
            for fiscal year 1999 for military construction projects, land
            acquisition, family housing projects and facilities, or
            contributions to the North Atlantic Treaty Organization
            Infrastructure program.
    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993
                              PROJECTS.

        (a) Extensions.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1993 (division B of
    Public Law 102-484; 106 Stat. 2602), authorizations for the projects set
    forth in the tables in subsection (b), as provided in section 2101,
    2301, or 2601 of that Act or in section 2201 of that Act (as amended by
    section 2206 of this Act), shall remain in effect until October 1, 1996,
    or the
    date of the enactment of an Act authorizing funds for military
    construction for fiscal year 1997, whichever is later.

        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                     Army: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization       $15,000,000
                                                                        Support Facility.
    Hawaii................................  Schofield Barracks.......  Add/Alter Sewage Treatment        $17,500,000
                                                                        Plant.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 110 STAT. 542]]

                                     Navy: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Camp Pendleton Marine      Sewage Treatment Plant            $19,740,000
                                             Corps Base.                Modifications.
    Maryland..............................  Patuxent River Naval       Large Anechoic Chamber, Phase     $60,990,000
                                             Warfare Center.            I.
    Mississippi...........................  Meridian Naval Air         Child Development Center.....      $1,100,000
                                             Station.
    Virginia..............................  Hampton Roads............  Land Acquisition.............      $4,500,000
    ----------------------------------------------------------------------------------------------------------------

                                   Air Force: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Arkansas..............................  Little Rock Air Force      Fire Training Facility.......        $710,000
                                             Base.
    District of Columbia..................  Bolling Air Force Base...  Civil Engineer Complex.......      $9,400,000
    Mississippi...........................  Keesler Air Force Base...  Alter Student Dormitory......      $3,100,000
    North Carolina........................  Pope Air Force Base......  Construct Bridge Road and          $4,000,000
                                                                        Utilities.
                                            Pope Air Force Base......  Munitions Storage Complex....      $4,300,000
    Virginia..............................  Langley Air Force Base...  Base Engineer Complex........      $5,300,000
    Guam..................................  Andersen Air Base........  Landfill.....................     $10,000,000
    Portugal..............................  Lajes Field..............  Water Wells..................        $865,000
                                            Lajes Field..............  Fire Training Facility.......        $950,000
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama...............................  Tuscaloosa...............  Armory.......................      $2,273,000
                                            Union Springs............  Armory.......................        $813,000
    Oregon................................  La Grande................  Organizational Maintenance         $1,220,000
                                                                        Shop.
                                            La Grande................  Armory Addition..............      $3,049,000
    Pennsylvania..........................  Indiana..................  Armory.......................      $1,700,000
    Rhode Island..........................  North Kingston...........  Add/Alter Armory.............      $3,330,000
    ----------------------------------------------------------------------------------------------------------------

    [[Page 110 STAT. 543]]

                                 Army Reserve: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    West Virginia.........................  Bluefield................  United States Army Reserve         $1,921,000
                                                                        Center.
                                            Clarksburg...............  United States Army Reserve         $1,566,000
                                                                        Center.
                                            Grantville...............  United States Army Reserve         $2,785,000
                                                                        Center.
                                            Lewisburg................  United States Army Reserve         $1,631,000
                                                                        Center.
                                            Weirton..................  United States Army Reserve         $3,481,000
                                                                        Center.
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992
                PROJECTS.

        (a) Extensions.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1992 (division B of
    Public Law 102-190; 105 Stat. 1535), authorizations for the projects set
    forth in the tables in subsection (b), as provided in section 2101 or
    2601 of that Act, and extended by section 2702 of the Military
    Construction Authorization Act for Fiscal Year 1995 (division B of
    Public Law 103-337; 108 Stat. 3047), shall remain in effect until
    October 1, 1996, or the date of the enactment of an Act authorizing
    funds for military construction for fiscal year 1997, whichever is
    later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                     Army: Extension of 1992 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization        $3,600,000
                                                                        Support Facility.
                                            Umatilla Army Depot......  Ammunition Demilitarization        $7,500,000
                                                                        Utilities.
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1992 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Ohio..................................  Toledo...................  Armory.......................      $3,183,000
    ----------------------------------------------------------------------------------------------------------------

                                  Army Reserve: Extension of 1992 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Tennessee.............................  Jackson..................  Joint Training Facility......      $1,537,000
    ----------------------------------------------------------------------------------------------------------------

    [[Page 110 STAT. 544]]

                        TITLE XXVIII--GENERAL PROVISIONS

              Subtitle A--Military Housing Privatization Initiative

    SEC. 2801. ALTERNATIVE AUTHORITY FOR CONSTRUCTION AND IMPROVEMENT
                              OF MILITARY HOUSING.

        (a) Alternative Authority To Construct and Improve Military
    Housing.--(1) Chapter 169 of title 10, United States Code, is amended by
    adding at the end the following new subchapter:

     ``SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT
                               OF MILITARY HOUSING

    ``Sec.
    ``2871. Definitions.
    ``2872. General authority.
    ``2873. Direct loans and loan guarantees.
    ``2874. Leasing of housing to be constructed.
    ``2875. Investments in nongovernmental entities.
    ``2876. Rental guarantees.
    ``2877. Differential lease payments.
    ``2878. Conveyance or lease of existing property and facilities.
    ``2879. Interim leases.
    ``2880. Unit size and type.
    ``2881. Ancillary supporting facilities.
    ``2882. Assignment of members of the armed forces to housing units.
    ``2883. Department of Defense Housing Funds.
    ``2884. Reports.
    ``2885. Expiration of authority.

    ``Sec. 2871. Definitions

        ``In this subchapter:
                ``(1) The term `ancillary supporting facilities' means
            facilities related to military housing units, including child
            care centers, day care centers, tot lots, community centers,
            housing offices, dining facilities, unit offices, and other
            similar facilities for the support of military housing.
                ``(2) The term `base closure law' means the following:
                        ``(A) Section 2687 of this title.
                        ``(B) Title II of the Defense Authorization
                    Amendments and Base Closure and Realignment Act (Public
                    Law 100-526; 10 U.S.C. 2687 note).
                        ``(C) 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).
                ``(3) The term `construction' means the construction of
            military housing units and ancillary supporting facilities or
            the improvement or rehabilitation of existing units or ancillary
            supporting facilities.
                ``(4) The term `contract' includes any contract, lease, or
            other agreement entered into under the authority of this
            subchapter.
                ``(5) The term `Fund' means the Department of Defense Family
            Housing Improvement Fund or the Department of Defense Military
            Unaccompanied Housing Improvement Fund established under section
            2883(a) of this title.
                ``(6) The term `military unaccompanied housing' means
            military housing intended to be occupied by members of the armed
            forces serving a tour of duty unaccompanied by dependents.

    [[Page 110 STAT. 545]]

                ``(7) The term `United States' includes the Commonwealth of
            Puerto Rico.

    ``Sec. 2872. General authority

        ``In addition to any other authority provided under this chapter for
    the acquisition or construction of military family housing or military
    unaccompanied housing, the Secretary concerned may exercise any
    authority or any combination of authorities provided under this
    subchapter in order to provide for the acquisition or construction by
    private persons of the following:
                ``(1) Family housing units on or near military installations
            within the United States and its territories and possessions.
                ``(2) Military unaccompanied housing units on or near such
            military installations.

    ``Sec. 2873. Direct loans and loan guarantees

        ``(a) Direct Loans.--(1) Subject to subsection (c), the Secretary
    concerned may make direct loans to persons in the private sector in
    order to provide funds to such persons for the acquisition or
    construction of housing units that the Secretary determines are suitable
    for use as military family housing or as military unaccompanied housing.
        ``(2) The Secretary concerned shall establish such terms and
    conditions with respect to loans made under this subsection as the
    Secretary considers appropriate to protect the interests of the United
    States, including the period and frequency for repayment of such loans
    and the obligations of the obligors on such loans upon default.
        ``(b) Loan Guarantees.--(1) Subject to subsection (c), the Secretary
    concerned may guarantee a loan made to any person in the private sector
    if the proceeds of the loan are to be used by the person to acquire, or
    construct housing units that the Secretary determines are suitable for
    use as military family housing or as military unaccompanied housing.
        ``(2) The amount of a guarantee on a loan that may be provided under
    paragraph (1) may not exceed the amount equal to the lesser of--
                ``(A) the amount equal to 80 percent of the value of the
            project; or
                ``(B) the amount of the outstanding principal of the loan.

        ``(3) The Secretary concerned shall establish such terms and
    conditions with respect to guarantees of loans under this subsection as
    the Secretary considers appropriate to protect the interests of the
    United States, including the rights and obligations of obligors of such
    loans and the rights and obligations of the United States with respect
    to such guarantees.
        ``(c) Limitation on Direct Loan and Guarantee Authority.--Direct
    loans and loan guarantees may be made under this section only to the
    extent that appropriations of budget authority to cover their cost (as
    defined in section 502(5) of the Federal Credit Reform Act of 1990 (2
    U.S.C. 661a(5))) are made in advance, or authority is otherwise provided
    in appropriation Acts. If such appropriation or other authority is
    provided, there may be established a financing
    account (as defined in section 502(7) of such Act (2 U.S.C. 661a(7))),
    which shall be available for the disbursement of direct loans or payment
    of claims for payment on loan guarantees under this

    [[Page 110 STAT. 546]]

    section and for all other cash flows to and from the Government as a
    result of direct loans and guarantees made under this section.

    ``Sec. 2874. Leasing of housing to be constructed

        ``(a) Build and Lease Authorized.--The Secretary concerned may enter
    into contracts for the lease of military family housing units or
    military unaccompanied housing units to be constructed under this
    subchapter.
        ``(b) Lease Terms.--A contract under this section may be for any
    period that the Secretary concerned determines appropriate and may
    provide for the owner of the leased property to operate and maintain the
    property.

    ``Sec. 2875. Investments in nongovernmental entities

        ``(a) Investments Authorized.--The Secretary concerned may make
    investments in nongovernmental entities carrying out projects for the
    acquisition or construction of housing units suitable for use as
    military family housing or as military unaccompanied housing.
        ``(b) Forms of Investment.--An investment under this section may
    take the form of an acquisition of a limited partnership interest by the
    United States, a purchase of stock or other equity instruments by the
    United States, a purchase of bonds or other debt instruments by the
    United States, or any combination of such forms of investment.
        ``(c) Limitation on Value of Investment.--(1) The cash amount of an
    investment under this section in a nongovernmental entity may not exceed
    an amount equal to 33\1/3\ percent of the capital cost (as determined by
    the Secretary concerned) of the project or projects that the entity
    proposes to carry out under this section with the investment.
        ``(2) If the Secretary concerned conveys land or facilities to a
    nongovernmental entity as all or part of an investment in the entity
    under this section, the total value of the investment by the Secretary
    under this section may not exceed an amount equal to 45 percent of the
    capital cost (as determined by the Secretary) of the project or projects
    that the entity proposes to carry out under this section with the
    investment.
        ``(3) In this subsection, the term `capital cost', with respect to a
    project for the acquisition or construction of housing, means the total
    amount of the costs included in the basis of the housing for Federal
    income tax purposes.
        ``(d) Collateral Incentive Agreements.--The Secretary concerned
    shall enter into collateral incentive agreements with nongovernmental
    entities in which the Secretary makes an investment under this section
    to ensure that a suitable preference will be afforded members of the
    armed forces and their dependents in the lease or purchase, as the case
    may be, of a reasonable number of the housing units covered by the
    investment.

    ``Sec. 2876. Rental guarantees

        ``The Secretary concerned may enter into agreements with private
    persons that acquire or construct military family housing units or
    military unaccompanied housing units under this subchapter in order to
    assure--
                ``(1) the occupancy of such units at levels specified in the
            agreements; or

    [[Page 110 STAT. 547]]

                ``(2) rental income derived from rental of such units at
            levels specified in the agreements.

    ``Sec. 2877. Differential lease payments

        ``Pursuant to an agreement entered into by the Secretary concerned
    and a private lessor of military family housing or military
    unaccompanied housing to members of the armed forces, the Secretary may
    pay the lessor an amount in addition to the rental payments for the
    housing made by the members as the Secretary determines appropriate to
    encourage the lessor to make the housing available to members of the
    armed forces as military family housing or as military unaccompanied
    housing.
    ``Sec. 2878. Conveyance or lease of existing property and
                        facilities

        ``(a) Conveyance or Lease Authorized.--The Secretary concerned may
    convey or lease property or facilities (including ancillary supporting
    facilities) to private persons for purposes of using the proceeds of
    such conveyance or lease to carry out activities under this subchapter.
        ``(b) Inapplicability to Property at Installation Approved for
    Closure.--The authority of this section does not apply to property or
    facilities located on or near a military installation approved for
    closure under a base closure law.
        ``(c) Terms and Conditions.--(1) The conveyance or lease of property
    or facilities under this section shall be for such consideration and
    upon such terms and conditions as the Secretary concerned considers
    appropriate for the purposes of this subchapter and to protect the
    interests of the United States.
        ``(2) As part or all of the consideration for a conveyance or lease
    under this section, the purchaser or lessor (as the case may be) shall
    enter into an agreement with the Secretary to ensure that a suitable
    preference will be afforded members of the armed forces and their
    dependents in the lease or sublease of a reasonable number of the
    housing units covered by the conveyance or lease, as the case may be, or
    in the lease of other suitable housing units made available by the
    purchaser or lessee.
        ``(d) Inapplicability of Certain Property Management Laws.--The
    conveyance or lease of property or facilities under this section shall
    not be subject to the following provisions of law:
                ``(1) Section 2667 of this title.
                ``(2) The Federal Property and Administrative Services Act
            of 1949 (40 U.S.C. 471 et seq.).
                ``(3) Section 321 of the Act of June 30, 1932 (commonly
            known as the Economy Act) (40 U.S.C. 303b).
                ``(4) Section 501 of the Stewart B. McKinney Homeless
            Assistance Act (42 U.S.C. 11401).

    ``Sec. 2879. Interim leases

        ``Pending completion of a project to acquire or construct military
    family housing units or military unaccompanied housing units under this
    subchapter, the Secretary concerned may provide for the interim lease of
    such units of the project as are complete. The term of a lease under
    this section may not extend beyond the date of the completion of the
    project concerned.

    [[Page 110 STAT. 548]]

    ``Sec. 2880. Unit size and type

        ``(a) Conformity With Similar Housing Units in Locale.--The
    Secretary concerned shall ensure that the room patterns and floor areas
    of military family housing units and military unaccompanied housing
    units acquired or constructed under this subchapter are generally
    comparable to the room patterns and floor areas of similar housing units
    in the locality concerned.
        ``(b) Inapplicability of Limitations on Space by Pay Grade.--(1)
    Section 2826 of this title shall not apply to military family housing
    units acquired or constructed under this subchapter.
        ``(2) The regulations prescribed under section 2856 of this title
    shall not apply to any military unaccompanied housing unit acquired or
    constructed under this subchapter unless the unit is located on a
    military installation.

    ``Sec. 2881. Ancillary supporting facilities

        ``Any project for the acquisition or construction of military family
    housing units or military unaccompanied housing units under this
    subchapter may include the acquisition or construction of ancillary
    supporting facilities for the housing units concerned.
    ``Sec. 2882. Assignment of members of the armed forces to housing
                        units

        ``(a) In General.--The Secretary concerned may assign members of the
    armed forces to housing units acquired or constructed under this
    subchapter.
        ``(b) Effect of Certain Assignments on Entitlement to Housing
    Allowances.--(1) Except as provided in paragraph (2), housing referred
    to in subsection (a) shall be considered as quarters of the United
    States or a housing facility under the jurisdiction of a uniformed
    service for purposes of section 403(b) of title 37.
        ``(2) A member of the armed forces who is assigned in accordance
    with subsection (a) to a housing unit not owned or leased by the United
    States shall be entitled to a basic allowance for quarters under section
    403 of title 37 and, if in a high housing cost area, a variable housing
    allowance under section 403a of that title.
        ``(c) Lease Payments Through Pay Allotments.--The Secretary
    concerned may require members of the armed forces who lease housing in
    housing units acquired or constructed under this subchapter to make
    lease payments for such housing pursuant to allotments of the pay of
    such members under section 701 of title 37.

    ``Sec. 2883. Department of Defense Housing Funds

        ``(a) Establishment.--There are hereby established on the books of
    the Treasury the following accounts:
                ``(1) The Department of Defense Family Housing Improvement
            Fund.
                ``(2) The Department of Defense Military Unaccompanied
            Housing Improvement Fund.

        ``(b) Commingling of Funds Prohibited.--(1) The Secretary of Defense
    shall administer each Fund separately.
        ``(2) Amounts in the Department of Defense Family Housing
    Improvement Fund may be used only to carry out activities under this
    subchapter with respect to military family housing.

    [[Page 110 STAT. 549]]

        ``(3) Amounts in the Department of Defense Military Unaccompanied
    Housing Improvement Fund may be used only to carry out activities under
    this subchapter with respect to military unaccompanied housing.
        ``(c) Credits to Funds.--(1) There shall be credited to the
    Department of Defense Family Housing Improvement Fund the following:
                ``(A) Amounts authorized for and appropriated to that Fund.
                ``(B) Subject to subsection (f), any amounts that the
            Secretary of Defense transfers, in such amounts as provided in
            appropriation Acts, to that Fund from amounts authorized and
            appropriated to the Department of Defense for the acquisition or
            construction of military family housing.
                ``(C) Proceeds from the conveyance or lease of property or
            facilities under section 2878 of this title for the purpose of
            carrying out activities under this subchapter with respect to
            military family housing.
                ``(D) Income derived from any activities under this
            subchapter with respect to military family housing, including
            interest on loans made under section 2873 of this title, income
            and gains realized from investments under section 2875 of this
            title, and any return of capital invested as part of such
            investments.

        ``(2) There shall be credited to the Department of Defense Military
    Unaccompanied Housing Improvement Fund the following:
                ``(A) Amounts authorized for and appropriated to that Fund.
                ``(B) Subject to subsection (f), any amounts that the
            Secretary of Defense transfers, in such amounts as provided in
            appropriation Acts, to that Fund from amounts authorized and
            appropriated to the Department of Defense for the acquisition or
            construction of military unaccompanied housing.
                ``(C) Proceeds from the conveyance or lease of property or
            facilities under section 2878 of this title for the purpose of
            carrying out activities under this subchapter with respect to
            military unaccompanied housing.
                ``(D) Income derived from any activities under this
            subchapter with respect to military unaccompanied housing,
            including interest on loans made under section 2873 of this
            title, income and gains realized from investments
    under section 2875 of this title, and any return of capital invested as
    part of such investments.

        ``(d) Use of Amounts in Funds.--(1) In such amounts as provided in
    appropriation Acts and except as provided in subsection (e), the
    Secretary of Defense may use amounts in the Department of Defense Family
    Housing Improvement Fund to carry out activities under this subchapter
    with respect to military family housing, including activities required
    in connection with the planning, execution, and administration of
    contracts entered into under the authority of this subchapter.
        ``(2) In such amounts as provided in appropriation Acts and except
    as provided in subsection (e), the Secretary of Defense may use amounts
    in the Department of Defense Military Unaccompanied Housing Improvement
    Fund to carry out activities under this subchapter with respect to
    military unaccompanied housing, including activities required in
    connection with the planning, execution, and administration of contracts
    entered into under the authority of this subchapter.

    [[Page 110 STAT. 550]]

        ``(3) Amounts made available under this subsection shall remain
    available until expended. The Secretary of Defense may transfer amounts
    made available under this subsection to the Secretaries of the military
    departments to permit such Secretaries to carry out the activities for
    which such amounts may be used.
        ``(e) Limitation on Obligations.--The Secretary may not incur an
    obligation under a contract or other agreement entered into under this
    subchapter in excess of the unobligated balance, at the time the
    contract is entered into, of the Fund required to be used to satisfy the
    obligation.
        ``(f) Notification Required for Transfers.--A transfer of
    appropriated amounts to a Fund under paragraph (1)(B) or (2)(B) of
    subsection (c) may be made only after the end of the 30-day period
    beginning on the date the Secretary of Defense submits written notice
    of, and justification for, the transfer to the appropriate committees of
    Congress.
        ``(g) Limitation on Amount of Budget Authority.--The total value in
    budget authority of all contracts and investments undertaken using the
    authorities provided in this subchapter shall not exceed--
                ``(1) $850,000,000 for the acquisition or construction of
            military family housing; and
                ``(2) $150,000,000 for the acquisition or construction of
            military unaccompanied housing.

    ``Sec. 2884. Reports

        ``(a) Project Reports.--(1) The Secretary of Defense shall transmit
    to the appropriate committees of Congress a report describing--
                ``(A) each contract for the acquisition or construction of
            family housing units or unaccompanied housing units that the
            Secretary proposes to solicit under this subchapter; and
                ``(B) each conveyance or lease proposed under section 2878
            of this title.

        ``(2) The report shall describe the proposed contract, conveyance,
    or lease and the intended method of participation of the United States
    in the contract, conveyance, or lease and provide a justification of
    such method of participation. The report shall be submitted not later
    than 30 days before the date on which the Secretary issues the contract
    solicitation or offers the conveyance or lease.
        ``(b) Annual Reports.--The Secretary of Defense shall include each
    year in the materials that the Secretary submits to Congress in support
    of the budget submitted by the President pursuant to section 1105 of
    title 31 the following:
                ``(1) A report on the expenditures and receipts during the
            preceding fiscal year covering the Funds established under
            section 2883 of this title.
                ``(2) A methodology for evaluating the extent and
            effectiveness of the use of the authorities under this
            subchapter during such preceding fiscal year.
                ``(3) A description of the objectives of the Department of
            Defense for providing military family housing and military
            unaccompanied housing for members of the armed forces.

    [[Page 110 STAT. 551]]

    ``Sec. 2885. Expiration of authority

        ``The authority to enter into a contract under this subchapter shall
    expire five years after the date of the enactment of the National
    Defense Authorization Act for Fiscal Year 1996.''.
        (2) The table of subchapters at the beginning of such chapter is
    amended by inserting after the item relating to subchapter III the
    following new item:

    ``IV. Alternative Authority for Acquisition and Improvement of
    Military Housing.................................................2871''.

        (b) <<NOTE: 10 USC 2884 note.>>  Final Report.--Not later than March
    1, 2000, the Secretary of Defense shall submit to the congressional
    defense committees a report on the use by the Secretary of Defense and
    the Secretaries of the military departments of the authorities provided
    by subchapter IV of chapter 169 of title 10, United States Code, as
    added by subsection (a). The report shall assess the effectiveness of
    such authority in providing for the construction and improvement of
    military family housing and military unaccompanied housing.
    SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSHIPS FOR
                              DEVELOPMENT OF MILITARY FAMILY HOUSING.

        (a) Participation of Other Military Departments.--(1) Subsection
    (a)(1) of section 2837 of title 10, United States Code, is amended by
    striking out ``of the naval service'' and inserting in lieu thereof ``of
    the armed forces''.
        (2) Subsection (b)(1) of such section is amended by striking out
    ``of the naval service'' and inserting in lieu thereof ``of the armed
    forces''.
        (b) Administration.--(1) Subsection (a)(1) of such section is
    further amended by striking out ``the Secretary of the Navy'' in the
    first sentence and inserting in lieu thereof ``the Secretary of a
    military department''.
        (2) Subsections (a)(2), (b), (c), (g), and (h) of such section are
    amended by striking out ``Secretary'' each place it appears and
    inserting in lieu thereof ``Secretary concerned''.

        (c) Account.--Subsection (d) of such section is amended to read as
    follows:
        ``(d) <<NOTE: Nomenclature.>>  Account.--(1) There is hereby
    established on the books of the Treasury an account to be known as the
    `Defense Housing Investment Account'.

        ``(2) There shall be deposited into the Account--
                ``(A) such funds as may be authorized for and appropriated
            to the Account;
                ``(B) any proceeds received by the Secretary concerned from
            the repayment of investments or profits on investments of the
            Secretary under subsection (a); and
                ``(C) any unobligated balances which remain in the Navy
            Housing Investment Account as of the date of the enactment of
            the National Defense Authorization Act for Fiscal Year 1996.

        ``(3) From such amounts as are provided in advance in appropriation
    Acts, funds in the Account shall be available to the Secretaries
    concerned in amounts determined by the Secretary of Defense for
    contracts, investments, and expenses necessary for the implementation of
    this section.
        ``(4) The Secretary concerned may not enter into a contract in
    connection with a limited partnership under subsection (a) or a
    collateral incentive agreement under subsection (b) unless a sufficient
    amount of the unobligated balance of the funds in the Account

    [[Page 110 STAT. 552]]

    is available to the Secretary, as of the time the contract is entered
    into, to satisfy the total obligations to be incurred by the United
    States under the contract.''.
        (d) Termination of Navy Housing Investment Board.--Such section is
    further amended--
                (1) by striking out subsection (e); and
                (2) in subsection (h)--
                        (A) by striking out ``Authorities'' in the
                    subsection heading and inserting in lieu thereof
                    ``Authority'';
                        (B) by striking out ``(1)''; and
                        (C) by striking out paragraph (2).

        (e) Report.--Subsection (f) of such section is amended--
                (1) by striking out ``the Secretary carries out activities''
            and inserting in lieu thereof ``activities are carried out'';
            and
                (2) by striking out ``the Secretary shall'' and inserting in
            lieu thereof ``the Secretaries concerned shall jointly''.

        (f) Extension of Authority.--Subsection (h) of such section is
    further amended by striking out ``September 30, 1999'' and inserting in
    lieu thereof ``September 30, 2000''.
        (g) Conforming Amendment.--Subsection (g) of such section is further
    amended by striking out ``Navy'' in the subsection heading.

      Subtitle B--Other Military Construction Program and Military Family
                                 Housing Changes

    SEC. 2811. SPECIAL THRESHOLD FOR UNSPECIFIED MINOR CONSTRUCTION
                              PROJECTS TO CORRECT LIFE, HEALTH, OR
                              SAFETY DEFICIENCIES.

        (a) Special Threshold.--Section 2805 of title 10, United States
    Code, is amended--
                (1) in subsection (a)(1), by adding at the end the following
            new sentence: ``However, if the military construction project is
            intended solely to correct a deficiency that is life-
            threatening, health-threatening, or safety-threatening, a minor
            military construction project may have an approved cost equal to
            or less than $3,000,000.''; and
                (2) in subsection (c)(1), by striking out ``not more than
            $300,000.'' and inserting in lieu thereof ``not more than--
                ``(A) $1,000,000, in the case of an unspecified military
            construction project intended solely to correct a deficiency
            that is life-threatening, health-threatening, or safety-
            threatening; or
                ``(B) $300,000, in the case of any other unspecified
            military construction project.''.

        (b) Technical Amendment.--Section 2861(b)(6) of such title is
    amended by striking out ``section 2805(a)(2)'' and inserting in lieu
    thereof ``section 2805(a)(1)''.
    SEC. 2812. CLARIFICATION OF SCOPE OF UNSPECIFIED MINOR
                              CONSTRUCTION AUTHORITY.

        Section 2805(a)(1) of title 10, United States Code, as amended by
    section 2811 of this Act, is further amended by striking out

    [[Page 110 STAT. 553]]

    ``(1) that is for a single undertaking at a military installation, and
    (2)'' in the second sentence.
    SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA LIMITATION
                              FOR FAMILY HOUSING ACQUIRED IN LIEU OF
                              CONSTRUCTION.

        Section 2824(c) of title 10, United States Code, is amended by
    adding at the end the following new sentence: ``The Secretary concerned
    may waive the limitation set forth in the preceding sentence to family
    housing units acquired under this section during the five-year period
    beginning on the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 1996.''.
    SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR AREA
                              LIMITATION ON ACQUISITION BY PURCHASE OF
                              CERTAIN MILITARY FAMILY HOUSING.

        Section 2826(e) of title 10, United States Code, is amended by
    striking out the second sentence.
    SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON SPACE BY
                              PAY GRADE FOR MILITARY FAMILY HOUSING
                              UNITS.

        Section 2826 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(i)(1) The Secretary concerned may waive the provisions of
    subsection (a) with respect to military family housing units
    constructed, acquired, or improved during the five-year period beginning
    on the date of the enactment of the National Defense Authorization Act
    for Fiscal Year 1996.
        ``(2) The total number of military family housing units constructed,
    acquired, or improved during any fiscal year in the
    period referred to in paragraph (1) shall be the total number of such
    units authorized by law for that fiscal year.''.

    SEC. 2816. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

        Section 2828(e) of title 10, United States Code, is amended--
                (1) in paragraph (1)--
                        (A) by striking out ``300 units'' in the first
                    sentence and inserting in lieu thereof ``450 units'';
                    and
                        (B) by striking out ``220 such units'' in the second
                    sentence and inserting in lieu thereof ``350 such
                    units''; and
                (2) in paragraph (2), by striking out ``300 units'' and
            inserting in lieu thereof ``450 units''.
    SEC. 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON COST
                              INCREASES UNDER CONTRACTS FOR MILITARY
                              FAMILY HOUSING CONSTRUCTION.

        Subsection (d) of section 2853 of title 10, United States Code, is
    amended to read as follows:
        ``(d) The limitation on cost increases in subsection (a) does not
    apply to the settlement of a contractor claim under a contract.''.
    SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED MILITARY
                              FAMILY HOUSING.

        (a) Authority.--(1) Subchapter III of chapter 169 of title 10,
    United States Code, is amended by inserting after section 2854 the
    following new section:

    [[Page 110 STAT. 554]]

    ``Sec. 2854a. Conveyance of damaged or deteriorated military
                          family housing; use of proceeds

        ``(a) Authority To Convey.--(1) The Secretary concerned may convey
    any family housing facility that, due to damage or deterioration, is in
    a condition that is uneconomical to repair. Any conveyance of a family
    housing facility under this section may include a conveyance of the real
    property associated with the facility conveyed.
        ``(2) The authority of this section does not apply to family housing
    facilities located at military installations approved for closure under
    a base closure law or family housing facilities located at an
    installation outside the United States at which the Secretary of Defense
    terminates operations.
        ``(3) The aggregate total value of the family housing facilities
    conveyed by the Department of Defense under the authority in this
    subsection in any fiscal year may not exceed $5,000,000.
        ``(4) For purposes of this subsection, a family housing facility is
    in a condition that is uneconomical to repair if the cost of the
    necessary repairs for the facility would exceed the amount equal to 70
    percent of the cost of constructing a family housing facility to replace
    such facility.
        ``(b) Consideration.--(1) As consideration for the conveyance of a
    family housing facility under subsection (a), the person to whom the
    facility is conveyed shall pay the United States an amount equal to the
    fair market value of the facility conveyed, including any real property
    conveyed along with the facility.
        ``(2) The Secretary concerned shall determine the fair market value
    of any family housing facility and associated real property that is
    conveyed under subsection (a). Such determination shall be final.
        ``(c) Notice and Wait Requirements.--The Secretary concerned may not
    enter into an agreement to convey a family housing facility under this
    section until--
                ``(1) the Secretary submits to the appropriate committees of
            Congress, in writing, a justification for the conveyance under
            the agreement, including--
                        ``(A) an estimate of the consideration to be
                    provided the United States under the agreement;
                        ``(B) an estimate of the cost of repairing the
                    family housing facility to be conveyed; and
                        ``(C) an estimate of the cost of replacing the
                    family housing facility to be conveyed; and
                ``(2) a period of 21 calendar days has elapsed after the
            date on which the justification is received by the committees.

        ``(d) Inapplicability of Certain Property Disposal Laws.--The
    following provisions of law do not apply to the conveyance of a family
    housing facility under this section:
                ``(1) The Federal Property and Administrative Services Act
            of 1949 (40 U.S.C. 471 et seq.).
                ``(2) Title V of the Stewart B. McKinney Homeless Assistance
            Act (42 U.S.C. 11411 et seq.).

        ``(e) Use of Proceeds.--(1) The proceeds of any conveyance of a
    family housing facility under this section shall be credited to the
    appropriate fund established under section 2883 of this title and shall
    be available--
                ``(A) to construct family housing units to replace the
            family housing facility conveyed under this section, but only to
            the extent that the number of units constructed with such
            proceeds

    [[Page 110 STAT. 555]]

            does not exceed the number of units of military family housing
            of the facility conveyed;
                ``(B) to repair or restore existing military family housing;
            and
                ``(C) to reimburse the Secretary concerned for the costs
            incurred by the Secretary in conveying the family housing
            facility.

        ``(2) Notwithstanding section 2883(d) of this title, proceeds
    derived from a conveyance of a family housing facility under this
    section shall be available under paragraph (1) without any further
    appropriation.
        ``(f) Description of Property.--The exact acreage and legal
    description of any family housing facility conveyed under this section,
    including any real property associated with such facility, shall be
    determined by such means as the Secretary concerned considers
    satisfactory, including by survey in the case of real property.
        ``(g) Additional Terms and Conditions.--The Secretary concerned may
    require such additional terms and conditions in connection with the
    conveyance of family housing facilities under this section as the
    Secretary considers appropriate to protect the interests of the United
    States.''.

        (2) The table of sections at the beginning of such subchapter is
    amended by inserting after the item relating to section 2854 the
    following new item:

    ``2854a. Conveyance of damaged or deteriorated military family housing;
               use of proceeds.''.

        (b) Conforming Amendment.--Section 204(h) of the Federal Property
    and Administrative Services Act of 1949 (40 U.S.C. 485(h)) is amended--
                (1) by redesignating paragraph (4) as paragraph (5); and
                (2) by inserting after paragraph (3) the following new
            paragraph (4):

        ``(4) This subsection does not apply to damaged or deteriorated
    military family housing facilities conveyed under section 2854a of title
    10, United States Code.''.
    SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE
                              DEPARTMENT OF DEFENSE.

        (a) Inclusion of Water Efficient Maintenance in Energy Performance
    Plan.--Paragraph (3) of section 2865(a) of title 10, United States Code,
    is amended by striking out ``energy efficient maintenance'' and
    inserting in lieu thereof ``energy efficient maintenance or water
    efficient maintenance''.
        (b) Scope of Term.--Paragraph (4) of such section is amended--
                (1) in the matter preceding subparagraph (A), by striking
            out `` `energy efficient maintenance' '' and inserting in lieu
            thereof `` `energy efficient maintenance or water efficient
            maintenance' '';
                (2) in subparagraph (A), by striking out ``systems or
            industrial processes,'' in the matter preceding clause (i) and
            inserting in lieu thereof ``systems, industrial processes, or
            water efficiency applications,''; and
                (3) in subparagraph (B), by inserting ``or water cost
            savings'' before the period at the end.

    [[Page 110 STAT. 556]]

    SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF LAND FOR
                              SPECIAL OPERATIONS ACTIVITIES.

        (a) Extension of Authority.--Subsection (d) of section 2680 of title
    10, United States Code, is amended in the first sentence by striking out
    ``September 30, 1995'' and inserting in lieu thereof ``September 30,
    2000''.
        (b) Reporting Requirement.--Such section is further amended by
    adding at the end the following new subsection:
        ``(e) Reports.--Not later than March 1 of each year, the Secretary
    of Defense shall submit to the Committee on the Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives a report that--
                ``(1) identifies each leasehold interest acquired during the
            previous fiscal year under subsection (a); and
                ``(2) contains a discussion of each project for the
            construction or modification of facilities carried out pursuant
            to subsection (c) during such fiscal year.''.

        (c) Conforming Repeal.--Section 2863 of the National Defense
    Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 10
    U.S.C. 2680 note) is amended by striking out subsection (b).
    SEC. 2821. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF DAMAGE
                              TO REAL PROPERTY.

        (a) In General.--Chapter 165 of title 10, United States Code, is
    amended by inserting after section 2781 the following new section:
    ``Sec. 2782. Damage to real property: disposition of amounts
                        recovered

        ``Except as provided in section 2775 of this title, amounts
    recovered for damage caused to real property under the jurisdiction of
    the Secretary of a military department or, with respect to the Defense
    Agencies, under the jurisdiction of the Secretary of Defense shall be
    credited to the account available for the repair or replacement of the
    real property at the time of recovery. In such amounts as are provided
    in advance in appropriation Acts, amounts so credited shall be available
    for use for the same purposes and under the same circumstances as other
    funds in the account.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2781 the following new item:

    ``2782. Damage to real property: disposition of amounts recovered.''.

    SEC. 2822. <<NOTE: Military Housing Assistance Act of 1995.>>
                              PILOT PROGRAM TO PROVIDE INTEREST RATE
                              BUY DOWN AUTHORITY ON LOANS FOR HOUSING
                              WITHIN HOUSING SHORTAGE AREAS AT
                              MILITARY INSTALLATIONS.

        (a) <<NOTE: 38 USC 101 note.>>  Short Title.--This section may be
    cited as the ``Military Housing Assistance Act of 1995''.

        (b) Mortgage Assistance Payment Authority of the Secretary of
    Veterans Affairs.--(1) Chapter 37 of title 38, United States Code, is
    amended by inserting after section 3707 the following:

    ``Sec. 3708. Authority to buy down interest rates: pilot program

        ``(a) In order to enable the purchase of housing in areas where the
    supply of suitable military housing is inadequate, the Secretary may
    conduct a pilot program under which the Secretary may make

    [[Page 110 STAT. 557]]

    periodic or lump sum assistance payments on behalf of an eligible
    veteran for the purpose of buying down the interest rate on a loan to
    that veteran that is guaranteed under this chapter for a purpose
    described in paragraph (1), (6), or (10) of section 3710(a) of this
    title.
        ``(b) An individual is an eligible veteran for the purposes of this
    section if--
                ``(1) the individual is a veteran, as defined in section
            3701(b)(4) of this title;
                ``(2) the individual submits an application for a loan
            guaranteed under this chapter within one year of an assignment
            of the individual to duty at a military installation in the
            United States designated by the Secretary of Defense as a
            housing shortage area;
                ``(3) at the time the loan referred to in subsection (a) is
            made, the individual is an enlisted member, warrant officer, or
            an officer (other than a warrant officer) at a pay grade of O-3
            or below;
                ``(4) the individual has not previously used any of the
            individual's entitlement to housing loan benefits under this
            chapter; and
                ``(5) the individual receives comprehensive prepurchase
            counseling from the Secretary (or the designee of the Secretary)
            before making application for a loan guaranteed under this
            chapter.

        ``(c) Loans with respect to which the Secretary may exercise the buy
    down authority under subsection (a) shall--
                ``(1) provide for a buy down period of not more than three
            years in duration;
                ``(2) specify the maximum and likely amounts of increases in
            mortgage payments that the loans would require; and
                ``(3) be subject to such other terms and conditions as the
            Secretary may prescribe by regulation.

        ``(d) The Secretary shall promulgate underwriting standards for
    loans for which the interest rate assistance payments may be made under
    subsection (a). Such standards shall be based on the interest rate for
    the second year of the loan.
        ``(e) The Secretary or lender shall provide comprehensive
    prepurchase counseling to eligible veterans explaining the features of
    interest rate buy downs under subsection (a), including a hypothetical
    payment schedule that displays the increases in monthly payments to the
    mortgagor over the first five years of the mortgage term. For the
    purposes of this subsection, the Secretary may assign personnel to
    military installations referred to in subsection (b)(2).
        ``(f) There is authorized to be appropriated $3,000,000 annually to
    carry out this section.
        ``(g) The Secretary may not guarantee a loan under this chapter
    after September 30, 1998, on which the Secretary is obligated to make
    payments under this section.''.

        (2) The table of sections at the beginning of chapter 37 of title
    38, United States Code, is amended by inserting after the item relating
    to section 3707 to following new item:

    ``3708. Authority to buy down interest rates: pilot program.''.

        (c) <<NOTE: 38 USC 3708 note.>>  Authority of Secretary of
    Defense.--
                (1) Reimbursement for buy down costs.--The Secretary of
            Defense shall reimburse the Secretary of Veterans Affairs for
            amounts paid by the Secretary of Veterans Affairs to mort

    [[Page 110 STAT. 558]]

            gagees under section 3708 of title 38, United States Code, as
            added by subsection (b).
                (2) Designation of housing shortage areas.--For purposes of
            section 3708 of title 38, United States Code, the Secretary of
            Defense may designate as a housing shortage area a military
            installation in the United States at which the Secretary
            determines there is a shortage of suitable housing to meet the
            military family needs of members of the Armed Forces and the
            dependents of such members.
                (3) Report.--Not later than March 30, 1998, the Secretary
            shall submit to Congress a report regarding the effectiveness of
            the authority provided in section 3708 of title 38, United
            States Code, in ensuring that members of the Armed Forces and
            their dependents have access to suitable housing. The report
            shall include the recommendations of the Secretary regarding
            whether the authority provided in this subsection should be
            extended beyond the date specified in paragraph (5).
                (4) Earmark.--Of the amount provided in section
            2405(a)(11)(B), $10,000,000 for fiscal year 1996 shall be
            available to carry out this subsection.
                (5) Sunset.--This subsection shall not apply with respect to
            housing loans guaranteed after September 30, 1998, for which
            assistance payments are paid under section 3708 of title 38,
            United States Code.

                Subtitle C--Defense Base Closure and Realignment

    SEC. 2831. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY LOCATED AT
                              INSTALLATIONS BEING CLOSED OR REALIGNED.

        (a) Exception to Existing Requirements.--Section 2667(d) of title
    10, United States Code, is amended--
                (1) in paragraph (1)(A)(ii), by inserting ``or (5)'' after
            ``paragraph (4)''; and
                (2) by adding at the end the following new paragraph:

        ``(5) Money rentals received by the United States from a lease under
    subsection (f) shall be deposited into the account established under
    section 2906(a) of the Defense Base Closure and Realignment Act of 1990
    (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.
        (b) Corresponding Amendments to Base Closure Laws.--(1) Section
    207(a)(7) of the Defense Authorization Amendments and Base Closure and
    Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note) is amended by
    striking out ``transfer or disposal'' and inserting in lieu thereof
    ``lease, transfer, or disposal''.
        (2) Section 2906(a)(2) of the Defense Base Closure and Realignment
    Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2867
    note) <<NOTE: 10 USC 2687 note.>>  is amended--
                (A) in subparagraph (C), by striking out ``transfer or
            disposal'' and inserting in lieu thereof ``lease, transfer, or
            disposal''; and
                (B) in subparagraph (D), by striking out ``transfer or
            disposal'' and inserting in lieu thereof ``lease, transfer, or
            disposal''.

    [[Page 110 STAT. 559]]

    SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS TO BE
                              CLOSED OR REALIGNED.

        Section 2667(f) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(4) The Secretary concerned may accept under subsection (b)(5)
    services of a lessee for an entire installation to be closed or
    realigned under a base closure law, or for any part of such
    installation, without regard to the requirement in subsection (b)(5)
    that a substantial part of the installation be leased.''.
    SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE OR
                              REALIGNMENT.

        Section 2667(f) of title 10, United States Code, is amended by
    adding after paragraph (4), as added by section 2832 of this Act, the
    following new paragraph:
        ``(5)(A) Notwithstanding the National Environmental Policy Act of
    1969 (42 U.S.C. 4321 et seq.), the scope of any environmental impact
    analysis necessary to support an interim lease of property under this
    subsection shall be limited to the environmental consequences of
    activities authorized under the proposed lease and the cumulative
    impacts of other past, present, and reasonably foreseeable future
    actions during the period of the proposed lease.
        ``(B) Interim leases entered into under this subsection shall be
    deemed not to prejudice the final disposal decision with respect to the
    property, even if final disposal of the property is delayed until
    completion of the term of the interim lease. An interim lease under this
    subsection shall not be entered into without prior consultation with the
    redevelopment authority concerned.
        ``(C) Subparagraphs (A) and (B) shall not apply to an interim lease
    under this subsection if authorized activities under the lease would--
                ``(i) significantly affect the quality of the human
            environment; or
                ``(ii) irreversibly alter the environment in a way that
            would preclude any reasonable disposal alternative of the
            property concerned.''.
    SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING ENVIRONMENTAL
                              REMEDIATION AT INSTALLATIONS APPROVED
                              FOR CLOSURE OR REALIGNMENT.

        Section 120(h)(3) of the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C.
    9620(h)(3)) is amended in the matter following subparagraph (C)--
                (1) by striking out the first sentence; and
                (2) by adding at the end, flush to the paragraph margin, the
            following:
            ``The requirements of subparagraph (B) shall not apply in any
            case in which the person or entity to whom the real property is
            transferred is a potentially responsible party with respect to
            such property. The requirements of subparagraph (B) shall not
            apply in any case in which the transfer of the property occurs
            or has occurred by means of a lease, without regard to whether
            the lessee has agreed to purchase the property or whether the
            duration of the lease is longer than 55 years. In the case of a
            lease entered into after September 30, 1995, with respect to
            real property located at an installation approved for closure or
            realignment under a base closure law, the agency

    [[Page 110 STAT. 560]]

            leasing the property, in consultation with the Administrator,
            shall determine before leasing the property that the property is
            suitable for lease, that the uses contemplated for the lease are
            consistent with protection of human health and the environment,
            and that there are adequate assurances that the United States
            will take all remedial action referred to in subparagraph (B)
            that has not been taken on the date of the lease.''.
    SEC. 2835. FINAL FUNDING FOR DEFENSE BASE CLOSURE AND REALIGNMENT
                              COMMISSION.

        Section 2902(k) of the Defense Base Closure and Realignment Act of
    1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
    is amended by adding at the end the following new paragraph:
        ``(3)(A) The Secretary may transfer not more than $300,000 from
    unobligated funds in the account referred to in subparagraph (B) for the
    purpose of assisting the Commission in carrying out its duties under
    this part during October, November, and December 1995. Funds transferred
    under the preceding sentence shall remain available until December 31,
    1995.
        ``(B) The account referred to in subparagraph (A) is the Department
    of Defense Base Closure Account established under section 207(a) of the
    Defense Authorization Amendments and Base Closure and Realignment Act
    (Public Law 100-526; 10 U.S.C. 2687 note).''.
    SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE ADMINISTRATOR OF
                              GENERAL SERVICES.

        Section 2905(b)(2) of the Defense Base Closure and Realignment Act
    of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
    note) is amended--
                (1) in subparagraph (A)--
                        (A) by striking out ``Subject to subparagraph (C)''
                    in the matter preceding clause (i) and inserting in lieu
                    thereof ``Subject to subparagraph (B)''; and
                        (B) by striking out ``in effect on the date of the
                    enactment of this Act'' each place it appears in clauses
                    (i) and (ii);
                (2) by striking out subparagraphs (B) and (C) and inserting
            in lieu thereof the following new subparagraph (B):

        ``(B) The Secretary may, with the concurrence of the Administrator
    of General Services--
                ``(i) prescribe general policies and methods for utilizing
            excess property and disposing of surplus property pursuant to
            the authority delegated under paragraph (1); and
                ``(ii) issue regulations relating to such policies and
            methods, which shall supersede the regulations referred to in
            subparagraph (A) with respect to that authority.''; and
                (3) by redesignating subparagraphs (D) and (E) as
            subparagraphs (C) and (D), respectively.
    SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLATIONS
                              APPROVED FOR CLOSURE OR REALIGNMENT.

        (a) Authority.--Section 2905(b)(4) of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2687 note) is amended--
                (1) by redesignating subparagraphs (C), (D), and (E) as
            subparagraphs (D), (E), and (F), respectively; and

    [[Page 110 STAT. 561]]

                (2) by inserting after subparagraph (B) the following new
            subparagraph (C):

        ``(C)(i) The Secretary may transfer real property at an installation
    approved for closure or realignment under this part (including property
    at an installation approved for realignment which will be retained by
    the Department of Defense or another Federal agency after realignment)
    to the redevelopment authority for the installation if the redevelopment
    authority agrees to lease, directly upon transfer, one or more portions
    of the property transferred under this subparagraph to the Secretary or
    to the head of another department or agency of the Federal Government.
    Subparagraph (B) shall apply to a transfer under this subparagraph.
        ``(ii) A lease under clause (i) shall be for a term of not to exceed
    50 years, but may provide for options for renewal or extension of the
    term by the department or agency concerned.
        ``(iii) A lease under clause (i) may not require rental payments by
    the United States.
        ``(iv) A lease under clause (i) shall include a provision specifying
    that if the department or agency concerned ceases requiring the use of
    the leased property before the expiration of the term of the lease, the
    remainder of the lease term may be satisfied by the same or another
    department or agency of the Federal Government using the property for a
    use similar to the use under the lease. Exercise of the authority
    provided by this clause shall be made in consultation with the
    redevelopment authority concerned.''.
        (b) <<NOTE: 10 USC 2687 note.>>  Use of Funds To Improve Leased
    Property.--Notwithstanding any other provision of law, a department or
    agency of the Federal Government that enters into a lease of property
    under section 2905(b)(4)(C) 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), as amended by subsection (a), may improve the leased property
    using funds appropriated or otherwise available to the department or
    agency for such purpose.
    SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT PROCESS
                              REGARDING DISPOSAL OF PROPERTY.

        (a) Applicability.--Subparagraph (A) of section 2905(b)(7) of the
    Defense Base Closure and Realignment Act of 1990 (part A of title XXIX
    of Public Law 101-510; 10 U.S.C. 2687 note) is amended to read as
    follows:
        ``(A) The disposal of buildings and property located at
    installations approved for closure or realignment under this part after
    October 25, 1994, shall be carried out in accordance with this paragraph
    rather than paragraph (6).''.
        (b) Agreements Under Redevelopment Plans.--Subparagraph (F)(ii)(I)
    of such section is amended in the second sentence by striking out ``the
    approval of the redevelopment plan by the Secretary of Housing and Urban
    Development under subparagraph (H) or (J)'' and inserting in lieu
    thereof ``the decision regarding the disposal of the buildings and
    property covered by the agreements by the Secretary of Defense under
    subparagraph (K) or (L)''.
        (c) Revision of Redevelopment Plans.--Subparagraph (I) of such
    section is amended--
                (1) in clause (i)(II), by inserting ``the Secretary of
            Defense and'' before ``the Secretary of Housing and Urban
            Development''; and

    [[Page 110 STAT. 562]]

                (2) in clause (ii), by striking out ``the Secretary of
            Housing and Urban Development'' and inserting in lieu thereof
            ``such Secretaries''.

        (d) Disposal of Buildings and Property.--(1) Subparagraph (K) of
    such section is amended to read as follows:
        ``(K)(i) Upon receipt of a notice under subparagraph (H)(iv) or
    (J)(ii) of the determination of the Secretary of Housing and Urban
    Development that a redevelopment plan for an installation meets the
    requirements set forth in subparagraph (H)(i), the Secretary of Defense
    shall dispose of the buildings and property at the installation.
        ``(ii) For purposes of carrying out an environmental assessment of
    the closure or realignment of an installation, the Secretary of Defense
    shall treat the redevelopment plan for the installation (including the
    aspects of the plan providing for disposal to State or local
    governments, representatives of the homeless, and other interested
    parties) as part of the proposed Federal action for the installation.
        ``(iii) The Secretary of Defense shall dispose of buildings and
    property under clause (i) in accordance with the record of decision or
    other decision document prepared by the Secretary in accordance with the
    National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.). In
    preparing the record of decision or other decision document, the
    Secretary shall give substantial deference to the redevelopment plan
    concerned.
        ``(iv) The disposal under clause (i) of buildings and property to
    assist the homeless shall be without consideration.
        ``(v) In the case of a request for a conveyance under clause (i) of
    buildings and property for public benefit under section 203(k) of the
    Federal Property and Administrative Services Act of 1949 (40 U.S.C.
    484(k)) or sections 47151 through 47153 of title 49, United States Code,
    the sponsoring Federal agency shall use the eligibility criteria set
    forth in such section or such subchapter (as the case may be) to
    determine the eligibility of the applicant and use proposed in the
    request for the public benefit conveyance. The determination of such
    eligibility should be made before submission of the redevelopment plan
    concerned under subparagraph (G).''.
        (2) Subparagraph (L) of such section is amended by striking out
    clauses (iii) and (iv) and inserting in lieu thereof the following new
    clauses (iii) and (iv):
        ``(iii) <<NOTE: Notification.>>  Not later than 90 days after the
    date of the receipt of a revised plan for an installation under
    subparagraph (J), the Secretary of Housing and Urban Development shall--
                ``(I) notify the Secretary of Defense and the redevelopment
            authority concerned of the buildings and property at an
            installation under clause (i)(IV) that the Secretary of Housing
            and Urban Development determines are suitable for use to assist
            the homeless; and
                ``(II) notify the Secretary of Defense of the extent to
            which the revised plan meets the criteria set forth in
            subparagraph (H)(i).

        ``(iv)(I) Upon notice from the Secretary of Housing and Urban
    Development with respect to an installation under clause (iii), the
    Secretary of Defense shall dispose of buildings and property at the
    installation in consultation with the Secretary of Housing and Urban
    Development and the redevelopment authority concerned.

    [[Page 110 STAT. 563]]

        ``(II) For purposes of carrying out an environmental assessment of
    the closure or realignment of an installation, the Secretary of Defense
    shall treat the redevelopment plan submitted by the redevelopment
    authority for the installation (including the aspects of the plan
    providing for disposal to State or local governments, representatives of
    the homeless, and other interested parties) as part of the proposed
    Federal action for the installation. The Secretary of Defense shall
    incorporate the notification of the Secretary of Housing and Urban
    Development under clause (iii)(I) as part of the proposed Federal action
    for the installation only to the extent, if any, that the Secretary of
    Defense considers such incorporation to be appropriate and consistent
    with the best and highest use of the installation as a whole, taking
    into consideration the redevelopment plan submitted by the redevelopment
    authority.
        ``(III) The Secretary of Defense shall dispose of buildings and
    property under subclause (I) in accordance with the record of decision
    or other decision document prepared by the Secretary in accordance with
    the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).
    In preparing the record of decision or other decision document, the
    Secretary shall give deference to the redevelopment plan submitted by
    the redevelopment authority for the installation.
        ``(IV) The disposal under subclause (I) of buildings and property to
    assist the homeless shall be without consideration.

        ``(V) In the case of a request for a conveyance under subclause (I)
    of buildings and property for public benefit under section 203(k) of the
    Federal Property and Administrative Services Act of 1949 (40 U.S.C.
    484(k)) or sections 47151 through 47153 of title 49, United States Code,
    the sponsoring Federal agency shall use the eligibility criteria set
    forth in such section or such subchapter (as the case may be) to
    determine the eligibility of the applicant and use proposed in the
    request for the public benefit conveyance. The determination of such
    eligibility should be made before submission of the redevelopment plan
    concerned under subparagraph (G).''.
        (e) Conforming Amendment.--Subparagraph (M)(i) of such section is
    amended by inserting ``or (L)'' after ``subparagraph (K)''.
        (f) Clarification of Participants In Process.--Such section is
    further amended by adding at the end the following new subparagraph:
        ``(P) For purposes of this paragraph, the term `other interested
    parties', in the case of an installation, includes any parties eligible
    for the conveyance of property of the installation under section 203(k)
    of the Federal Property and Administrative Services Act of 1949 (40
    U.S.C. 484(k)) or sections 47151 through 47153 of title 49, United
    States Code, whether or not the parties assist the homeless.''.
    SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS BEING
                              CLOSED.

        (a) 1988 Law.--Section 204(b)(8) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended by striking out subparagraph (A) and
    inserting in lieu thereof the following new subparagraph:
        ``(A) Subject to subparagraph (C), the Secretary may enter into
    agreements (including contracts, cooperative agreements, or other
    arrangements for reimbursement) with local governments for the provision
    of police or security services, fire protection serv

    [[Page 110 STAT. 564]]

    ices, airfield operation services, or other community services by such
    governments at military installations to be closed under this title if
    the Secretary determines that the provision of such services under such
    agreements is in the best interests of the Department of Defense.''.
        (b) 1990 Law.--Section 2905(b)(8) of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2867 note) is amended by striking out subparagraph (A) and
    inserting in lieu thereof the following new subparagraph:
        ``(A) Subject to subparagraph (C), the Secretary may enter into
    agreements (including contracts, cooperative agreements, or other
    arrangements for reimbursement) with local governments for the provision
    of police or security services, fire protection services, airfield
    operation services, or other community services by such governments at
    military installations to be closed under this part if the Secretary
    determines that the provision of such services under such agreements is
    in the best interests of the Department of Defense.''.
    SEC. 2840. AUTHORITY TO TRANSFER PROPERTY AT MILITARY
                              INSTALLATIONS TO BE CLOSED TO PERSONS
                              WHO CONSTRUCT OR PROVIDE MILITARY FAMILY
                              HOUSING.

        (a) 1988 Law.--Section 204 of the Defense Authorization Amendments
    and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687
    note) is amended by adding at the end the following new subsection:
        ``(e) Transfer Authority in Connection With Construction or
    Provision of Military Family Housing.--(1) Subject to paragraph (2), the
    Secretary may enter into an agreement to transfer by deed real property
    or facilities located at or near an installation closed or to be closed
    under this title with any person who agrees, in exchange for the real
    property or facilities, to transfer to the Secretary housing units that
    are constructed or provided by the person and located at or near a
    military installation at which there is a shortage of suitable housing
    to meet the requirements of members of the Armed Forces and their
    dependents. The Secretary may not select real property for transfer
    under this paragraph if the property is identified in the redevelopment
    plan for the installation as items essential to the reuse or
    redevelopment of the installation.
        ``(2) A transfer of real property or facilities may be made under
    paragraph (1) only if--
                ``(A) the fair market value of the housing units to be
            received by the Secretary in exchange for the property or
            facilities to be transferred is equal to or greater than the
            fair market value of such property or facilities, as determined
            by the Secretary; or
                ``(B) in the event the fair market value of the housing
            units is less than the fair market value of property or
            facilities to be transferred, the recipient of the property or
            facilities agrees to pay to the Secretary the amount equal to
            the excess of the fair market value of the property or
            facilities over the fair market value of the housing units.

        ``(3) Notwithstanding section 207(a)(7), the Secretary may deposit
    funds received under paragraph (2)(B) in the Department

    [[Page 110 STAT. 565]]

    of Defense Family Housing Improvement Fund established under section
    2873(a) of title 10, United States Code.
        ``(4) <<NOTE: Reports.>>  The Secretary shall submit to the
    appropriate committees of Congress a report describing each agreement
    proposed to be entered into under paragraph (1), including the
    consideration to be received by the United States under the agreement.
    The Secretary may not enter into the agreement until the end of the 21-
    day period beginning on the date the appropriate committees of Congress
    receive the report regarding the agreement.

        ``(5) The Secretary may require any additional terms and conditions
    in connection with an agreement authorized by this subsection as the
    Secretary considers appropriate to protect the interests of the United
    States.''.
        (b) 1990 Law.--Section 2905 of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2687 note) is amended by adding at the end the following new
    subsection:

        ``(f) Transfer Authority in Connection With Construction or
    Provision of Military Family Housing.--(1) Subject to paragraph (2), the
    Secretary may enter into an agreement to transfer by deed real property
    or facilities located at or near an installation closed or to be closed
    under this part with any person who agrees, in exchange for the real
    property or facilities, to transfer to the Secretary housing units that
    are constructed or provided by the person and located at or near a
    military installation at which there is a shortage of suitable housing
    to meet the requirements of members of the Armed Forces and their
    dependents. The Secretary may not select real property for transfer
    under this paragraph if the property is identified in the redevelopment
    plan for the installation as property essential to the reuse or
    redevelopment of the installation.
        ``(2) A transfer of real property or facilities may be made under
    paragraph (1) only if--
                ``(A) the fair market value of the housing units to be
            received by the Secretary in exchange for the property or
            facilities to be transferred is equal to or greater than the
            fair market value of such property or facilities, as determined
            by the Secretary; or
                ``(B) in the event the fair market value of the housing
            units is less than the fair market value of property or
            facilities to be transferred, the recipient of the property or
            facilities agrees to pay to the Secretary the amount equal to
            the excess of the fair market value of the property or
            facilities over the fair market value of the housing units.

        ``(3) Notwithstanding paragraph (2) of section 2906(a), the
    Secretary may deposit funds received under paragraph (2)(B) in the
    Department of Defense Family Housing Improvement Fund established under
    section 2873(a) of title 10, United States Code.
        ``(4) <<NOTE: Reports.>>  The Secretary shall submit to the
    congressional defense committees a report describing each agreement
    proposed to be entered into under paragraph (1), including the
    consideration to be received by the United States under the agreement.
    The Secretary may not enter into the agreement until the end of the 30-
    day period beginning on the date the congressional defense committees
    receive the report regarding the agreement.

        ``(5) The Secretary may require any additional terms and conditions
    in connection with an agreement authorized by this subsection

    [[Page 110 STAT. 566]]

    as the Secretary considers appropriate to protect the interests of the
    United States.''.
        (c) <<NOTE: 10 USC 2687 note.>>  Regulations.--Not later than nine
    months after the date of the enactment of this Act, the Secretary of
    Defense shall prescribe any regulations necessary to carry out
    subsection (e) of section 204 of the Defense Authorization Amendments
    and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687
    note), as added by subsection (a), and subsection (f) of section 2905 of
    the Defense Base Closure and Realignment Act of 1990 (part A of title
    XXIX of Public Law 101-510; 10 U.S.C. 2687 note), as added by subsection
    (b).
    SEC. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR DISPOSAL OF
                              PROPERTY AND FACILITIES AT FORT
                              HOLABIRD, MARYLAND.

        (a) Consolidation of Base Closure Authorities.--In the case of the
    property and facilities at Fort Holabird, Maryland, described in
    subsection (b), the Secretary of Defense shall dispose of such property
    and facilities in accordance with section 2905(b)(7) 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), as amended by section 2838 of this Act.
        (b) Covered Property and Facilities.--Subsection (a) applies to the
    following property and facilities at Fort Holabird, Maryland:
                (1) Property and facilities that were approved for closure
            or realignment under title II of the Defense Authorization
            Amendments and Base Closure and Realignment Act (Public Law 100-
            526; 10 U.S.C. 2687 note), but have not been disposed of as of
            the date of the enactment of this Act, including buildings 305
            and 306 and the parking lots and other property associated with
            such buildings.
                (2) Property and facilities that were approved in 1995 for
            closure or realignment 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).

        (c) Use of Surveys and Other Evaluations of Property.--In carrying
    out the disposal of the property and facilities referred to in
    subsection (b)(1), the Secretary shall utilize any surveys and other
    evaluations of such property and facilities that were prepared by the
    Corps of Engineers before the date of the enactment of this Act as part
    of the process for the disposal of such property and facilities.

                     Subtitle D--Land Conveyances Generally

                            PART I--ARMY CONVEYANCES

    SEC. 2851. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS.

        (a) Transfer of Land for National Cemetery.--The Secretary of the
    Army may transfer, without reimbursement, to the administrative
    jurisdiction of the Secretary of Veterans Affairs a parcel of real
    property (including any improvements thereon) consisting of
    approximately 53 acres and comprising a portion of Fort Sam Houston,
    Texas.
        (b) Use of Land.--The Secretary of Veterans Affairs shall use the
    real property transferred under subsection (a) as a national cemetery
    under chapter 24 of title 38, United States Code.

    [[Page 110 STAT. 567]]

        (c) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under this section shall be
    determined by a survey satisfactory to the Secretary of the Army. The
    cost of the survey shall be borne by the Secretary of Veterans Affairs.
        (d) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    transfer under this section as the
    Secretary of the Army considers appropriate to protect the interests of
    the United States.

    SEC. 2852. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS.

        (a) Transfer of Land for National Cemetery.--The Secretary of the
    Army may transfer, without reimbursement, to the administrative
    jurisdiction of the Secretary of Veterans Affairs a parcel of real
    property (including any improvements thereon) consisting of
    approximately 22 acres and comprising a portion of Fort Bliss, Texas.
        (b) Use of Land.--The Secretary of Veterans Affairs shall use the
    real property transferred under subsection (a) as an addition to the
    Fort Bliss National Cemetery and administer such real property pursuant
    to chapter 24 of title 38, United States Code.
        (c) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under this section shall be
    determined by a survey satisfactory to the Secretary of the Army. The
    cost of the survey shall be borne by the Secretary of Veterans Affairs.
        (d) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    transfer under this section as the Secretary of the Army considers
    appropriate to protect the interests of the United States.
    SEC. 2853. <<NOTE: 16 USC 668dd note.>>  TRANSFER OF JURISDICTION
                              AND LAND CONVEYANCE, FORT DEVENS
                              MILITARY RESERVATION, MASSACHUSETTS.

        (a) Transfer of Land for Wildlife Refuge.--Subject to subsections
    (b) and (c), the Secretary of the Army shall transfer, without
    reimbursement, to the administrative jurisdiction of the Secretary of
    the Interior that portion of Fort Devens Military Reservation,
    Massachusetts, that is situated south of Massachusetts State Route 2,
    for inclusion in the Oxbow National Wildlife Refuge.
        (b) Land Conveyance.--Subject to subsection (c), the Secretary of
    the Army shall convey to the Town of Lancaster, Massachusetts (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 consisting of
    approximately 100 acres of the parcel available for transfer under
    subsection (a) and located adjacent to Massachusetts State Highway 70.
        (c) Requirements Relating to Transfer and Conveyance.--(1) The
    transfer under subsection (a) and the conveyance under subsection (b)
    may not be made unless the property to be transferred and conveyed is
    determined to be excess to the needs of the Department of Defense.
        (2) The transfer and conveyance shall be made as soon as practicable
    after the date on which the property is determined to be excess to the
    needs of the Department of Defense.

    [[Page 110 STAT. 568]]

        (d) Legal Description.--(1) The exact acreage and legal description
    of the real property to be transferred under subsection (a) shall be
    determined by a survey mutually satisfactory to the Secretary of the
    Army and the Secretary of the Interior. The cost of the survey shall be
    borne by the Secretary of the Interior.
        (2) The exact acreage and legal description of the real property to
    be conveyed under subsection (b) shall be determined by a survey
    mutually satisfactory to the Secretary of the Army, the Secretary of the
    Interior, and the Board of Selectmen of the Town. The cost of the survey
    shall be borne by the Town.
        (e) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    transfer under subsection (a) and the conveyance under subsection (b) as
    the Secretary of the Army considers appropriate to protect the interests
    of the United States.
    SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR,
                              VIRGINIA.

        (a) Designation of Recipient.--Subsection (a) of section 2821 of the
    Military Construction Authorization Act for Fiscal Years 1990 and 1991
    (division B of Public Law 101-189; 103 Stat. 1658) is amended by
    striking out ``any grantee selected in accordance with subsection (e)''
    and inserting in lieu thereof ``the County of Fairfax, Virginia (in this
    section referred to as the `grantee'),''.
        (b) Consideration.--Subsection (b)(1) of such section is amended by
    striking out subparagraph (B) and inserting in lieu thereof the
    following new subparagraph:
                        ``(B) grant title, free of liens and other
                    encumbrances, to the Department to such facilities and,
                    if not already owned by the Department, to the
                    underlying land; and''.

        (c) Content of Agreement.--Subsection (c) of such section is amended
    to read as follows:
        ``(c) Content of Agreement.--An agreement entered into under this
    section shall include the following:
                ``(1) A requirement that the grantee construct facilities
            and make infrastructure improvements for the Department of the
            Army that the Secretary determines are necessary for the
            Department at Fort Belvoir and at other sites at which
            activities will be relocated as a result of the conveyance made
            under this section.
                ``(2) A requirement that the construction of facilities and
            infrastructure improvements referred to in paragraph (1) be
            carried out in accordance with plans and specifications approved
            by the Secretary.
                ``(3) A requirement that the Secretary retain a lien or
            other security interest against the property conveyed to the
            grantee in the amount of the fair market value of the property,
            as determined under subsection (b)(2). The agreement will
            specify the terms for releasing the lien or other security
            interest, in whole or in part. In the event of default by the
            County on its obligations under the terms of the agreement, the
            Secretary shall enforce the lien or security interest. The
            proceeds obtained through enforcing the lien or security
            interest may be used by the Secretary to construct facilities
            and make infrastructure improvements in lieu of those provided
            for in the agreement.''.

    [[Page 110 STAT. 569]]

        (d) Surveys.--Subsection (g) of such section is amended by striking
    out the last sentence and inserting in lieu thereof the following: ``The
    grantee shall be responsible for completing any such survey without cost
    to the United States.''.
        (e) Conforming Amendments.--Such section is further amended--
                (1) in subsection (a), by striking out ``Subject to
            subsections (b) through (h), the'' and inserting in lieu thereof
            ``The'';
                (2) in subsection (b)(1), by striking out ``subsection
            (c)(1)(D)'' both places it appears and inserting in lieu thereof
            ``subsection (c)(1)(A)'';
                (3) by striking out subsections (e) and (f); and
                (4) by redesignating subsections (g) and (h) as subsections
            (e) and (f), respectively.

    SEC. 2855. <<NOTE: Weyerhauser Real Estate Company.>>  LAND EXCHANGE,
                FORT LEWIS, WASHINGTON.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    Weyerhaeuser Real Estate Company, Tacoma, Washington (in this section
    referred to as ``WRECO''), all right, title, and interest of the United
    States in and to a parcel of real property at Fort Lewis, Washington,
    known as an unimproved portion of Tract 1000 (formerly being in the
    DuPont Steilacoom Road, consisting of approximately 1.23 acres), and
    Tract 26E (consisting of 0.03 acre).
        (b) Consideration.--As consideration for the conveyance authorized
    by subsection (a), WRECO shall convey or cause to be conveyed to the
    United States, by warranty deed acceptable to the Secretary, a 0.39 acre
    parcel of real property located adjacent to Fort Lewis, Washington,
    together with other consideration acceptable to the Secretary. The total
    consideration conveyed to the United States shall not be less than the
    fair market value of the land conveyed under subsection (a).
        (c) Determination of Fair Market Value.--The determinations of the
    Secretary regarding the fair market values of the parcels of real
    property and improvements to be conveyed pursuant to subsections (a) and
    (b) shall be final.
        (d) Description of Property.--The exact acreage and legal
    description of the parcels of real property to be conveyed pursuant to
    subsections (a) and (b) shall be determined by a survey satisfactory to
    the Secretary. The cost of the survey shall be borne by WRECO.
        (e) Effect on Existing Reversionary Interest.--The Secretary may
    enter into an agreement with the appropriate officials of Pierce County,
    Washington, under which--
                (1) the existing reversionary interest of Pierce County in
            the lands to be conveyed by the United States under subsection
            (a) is extinguished; and
                (2) the conveyance to the United States under subsection (b)
            is made subject to a similar reversionary interest in favor of
            Pierce County in the lands conveyed under such subsection.

        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.

    [[Page 110 STAT. 570]]

    SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE,
                              GEORGIA.

        (a) Land Exchange Authorized.--The Secretary of the Army may convey
    to the City of Gainesville, Georgia (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, together with any improvements thereon,
    consisting of approximately 4.2 acres and located on Shallowford Road in
    Gainesville, Georgia, the site of the Army Reserve Center, Gainesville,
    Georgia.
        (b) Consideration.--As consideration for the conveyance authorized
    by subsection (a), the City shall--
                (1) convey to the United States all right, title, and
            interest in and to a parcel of real property consisting of
            approximately 8 acres located in the Atlas Industrial Park,
            Gainesville, Georgia, that is acceptable to the Secretary;
                (2) design and construct on such real property suitable
            facilities (as determined by the Secretary) for training
            activities of the Army Reserve to replace facilities conveyed
            under subsection (a);
                (3) carry out, at cost to the City, any environmental
            assessments and any other studies, analyses, and assessments
            that may be required under Federal law in connection with the
            land conveyances under subsection (a) and paragraph (1) and the
            construction under paragraph (2);
                (4) pay the Secretary the amount (as determined by the
            Secretary) equal to the cost of relocating Army Reserve units
            from the real property to be conveyed under subsection (a) to
            the replacement facilities to be constructed under paragraph
            (2); and
                (5) if the fair market value of the real property conveyed
            by the Secretary under subsection (a) exceeds the fair market
            value of the consideration provided by the City under paragraphs
            (1) through (4), pay the United States the amount equal to the
            amount of such excess.

        (c) Determination of Fair Market Value.--The Secretary shall
    determine the fair market value of the real property to be conveyed
    under subsection (a) and of the consideration to be furnished by the
    City under subsection (b). Such determination shall be final.
        (d) Description of Property.--The exact acreage and legal
    description of the parcels of real property to be conveyed under
    subsections (a) and (b) shall be determined by a survey satisfactory to
    the Secretary. The cost of the survey shall be borne by the City.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances
    authorized by this section as the Secretary considers appropriate to
    protect the interests of the United States.
    SEC. 2857. LAND CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT, MOUNT
                              CARMEL, TENNESSEE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without reimbursement, to the City of
    Mount Carmel, Tennessee (in this section referred to as the ``City''),
    all right, title, and interest of the United States in and to a parcel
    of real property, including improvements thereon, consisting of
    approximately 6.5 acres located at Holston Army Ammunition Plant,
    Tennessee. The

    [[Page 110 STAT. 571]]

    property is located adjacent to the Mount Carmel Cemetery and is
    intended for expansion of the cemetery.

        (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) 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. 2858. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT,
                              CHARLESTOWN, INDIANA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the State of Indiana (in this section referred
    to as the ``State''), all right, title, and interest of the United
    States in and to a parcel of real property, including any improvements
    thereon, that consists of approximately 1125 acres at the inactivated
    Indiana Army Ammunition Plant in Charlestown, Indiana, and is the
    subject of a 25-year lease between the Secretary and the State.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the State use the
    conveyed property for recreational purposes.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the State.
        (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. 2859. LAND CONVEYANCE, FORT ORD, CALIFORNIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the City of Seaside, California (in this section referred to as the
    ``City''), all right, title, and interest of the United States in and to
    a parcel of real property (including improvements thereon) consisting of
    approximately 477 acres located in Monterey County, California, and
    comprising a portion of the former Fort Ord Military Complex. The real
    property to be conveyed to the City includes the two Fort Ord Golf
    Courses, Black Horse and Bayonet, and a portion of the Hayes Housing
    Facilities.
        (b) Consideration.--As consideration for the conveyance of the real
    property and improvements under subsection (a), the City shall pay to
    the United States an amount equal to the fair market value of the
    property to be conveyed, as determined by the Secretary.
        (c) Use and Deposit of Proceeds.--(1) From the funds paid by the
    City under subsection (b), the Secretary shall deposit in the Morale,
    Welfare, and Recreation Fund Account of the Department of the Army such
    amounts as may be necessary to cover morale, welfare, and recreation
    activities at Army installations in the general vicinity of Fort Ord
    during fiscal years 1996 through 2000. The amount deposited by the
    Secretary into the Account shall not exceed the fair market value, as
    established under subsection (b), of the two Fort Ord Golf Courses
    conveyed under subsection (a). <<NOTE: Notification.>>  The Secretary
    shall notify Congress of the amount

    [[Page 110 STAT. 572]]

    to be deposited not later than 90 days after the date of the conveyance.

        (2) The Secretary shall deposit the balance of any funds paid by the
    City under subsection (b), after deducting the amount deposited under
    paragraph (1), in the Department of Defense Base Closure Account 1990.
        (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 mutually satisfactory to the Secretary
    and the City. The cost of the survey shall be borne by the City.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2860. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING AREA,
                              DUBLIN, CALIFORNIA.

        (a) Conveyance Authorized.--(1) Except as provided in paragraph (2),
    the Secretary of the Army may convey to the County of Alameda,
    California (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 42
    acres located at Parks Reserve Forces Training Area, Dublin, California.
        (2) The conveyance authorized by this section shall not include any
    oil, gas, or mineral interest of the United States in the real property
    to be conveyed.
        (b) Consideration.--(1) As consideration for the conveyance under
    subsection (a)(1), the County shall provide the Army with the following
    services at the portion of Parks Reserve Forces Training Area retained
    by the Army:
                (A) Relocation of the main gate of the retained Training
            Area from Dougherty Road to Dublin Boulevard across from the Bay
            Area Rapid Transit District East Dublin station, including the
            closure of the existing main gate on Dougherty Road,
            construction of a security facility, and construction of a
            roadway from the new entrance to Fifth Street.
                (B) Enclosing and landscaping of the southern boundary of
            the retained Training Area installation located northerly of
            Dublin Boulevard.
                (C) Enclosing and landscaping of the eastern boundary of the
            retained Training Area from Dublin Boulevard to Gleason Drive.
                (D) Resurfacing of roadways within the retained Training
            Area.
                (E) Provision of such other services in connection with the
            retained Training Area, including relocation or reconstruction
            of water lines, relocation or reconstruction of sewer lines,
            construction of drainage improvements, and construction of
            buildings, as the Secretary and the County may determine to be
            appropriate.
                (F) Provision for and funding of any environmental
            mitigation that is necessary as a result of a change in use of
            the conveyed property by the County.

        (2) The detailed specifications for the services to be provided
    under paragraph (1) may be determined and approved on behalf

    [[Page 110 STAT. 573]]

    of the Secretary by the Commander of Parks Reserve Forces Training Area.
    The preparation costs of such specifications shall be borne by the
    County.
        (3) The fair market value of improvements and services received by
    the United States from the County under paragraph (1) must be equal to
    or exceed the appraised fair market value of the real property to be
    conveyed under subsection (a)(1). The appraisal of the fair market value
    of the property shall be subject to the Secretary's review and approval.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)(1)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the County.
        (d) Time for Transfer of Title.--The transfer of title to the County
    under subsection (a)(1) may be executed by the Secretary only upon the
    satisfactory guarantee by the County of completion of the services to be
    provided under subsection (b).
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a)(1) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2861. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN, OHIO.

        (a) Conveyance Authorized.--The Secretary of the Army 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 excess real property, including
    improvements thereon, that is located at 399 Miller Street in
    Youngstown, Ohio, and contains the Kefurt Army Reserve Center.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the City retain
    the conveyed property for the use and benefit of the Youngstown Fire
    Department.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT SHERIDAN,
                              ILLINOIS.

        (a) Conveyance Authorized.--Subject to subsection (b), the Secretary
    of the Army may convey to any transferee selected under subsection (g)
    all right, title, and interest of the United States in and to a parcel
    of real property (including improvements thereon) at Fort Sheridan,
    Illinois, consisting of approximately 114 acres and comprising an Army
    Reserve area.
        (b) Requirement for Federal Screening of Property.--The Secretary
    may not carry out the conveyance of property authorized by subsection
    (a) unless the Secretary determines that no department or agency of the
    Federal Government will accept the transfer of the property.

    [[Page 110 STAT. 574]]

        (c) Consideration.--(1) As consideration for the conveyance under
    subsection (a), the transferee selected under subsection (g) shall--
                (A) convey to the United States a parcel of real property
            that meets the requirements of subsection (d);
                (B) design for and construct on the property conveyed under
            subparagraph (A) such facilities (including support facilities
            and infrastructure) to replace the facilities conveyed pursuant
            to the authority in subsection (a) as the Secretary considers
            appropriate; and
                (C) pay the cost of relocating Army personnel in the
            facilities located on the real property conveyed pursuant to the
            authority in subsection (a) to the facilities constructed under
            subparagraph (B).

        (2) The Secretary shall ensure that the fair market value of the
    consideration provided by the transferee under paragraph (1) is not less
    than the fair market value of the real property conveyed by the
    Secretary under subsection (a).
        (d) Requirements Relating to Property To Be Conveyed to United
    States.--The real property conveyed to the United States under
    subsection (c)(1)(A) by the transferee selected under subsection (g)
    shall--
                (1) be located not more than 25 miles from Fort Sheridan;
                (2) be located in a neighborhood or area having social and
            economic conditions similar to the social and economic
            conditions of the area in which Fort Sheridan is located; and
                (3) be acceptable to the Secretary.

        (e) Interim Relocation of Army Personnel.--Pending completion of the
    construction of all the facilities proposed to be constructed under
    subsection (c)(1)(B) by the transferee selected under subsection (g),
    the Secretary may relocate Army personnel in the facilities located on
    the property to be conveyed pursuant to the authority in subsection (a)
    to the facilities that have been constructed by the transferee under
    such subsection (c)(1)(B).

        (f) Determination of Fair Market Value.--The Secretary shall
    determine the fair market value of the real property to be conveyed
    under subsection (a) and of the consideration to be provided under
    subsection (c)(1). Such determination shall be final.
        (g) Selection of Transferee.--(1) The Secretary shall use
    competitive procedures for the selection of a transferee under
    subsection (a).
        (2) In evaluating the offers of prospective transferees, the
    Secretary shall--
                (A) consider such criteria as the Secretary considers to be
            appropriate to determine whether prospective transferees will be
            able to satisfy the consideration requirements specified in
            subsection (c)(1); and
                (B) consult with the communities and jurisdictions in the
            vicinity of Fort Sheridan (including the City of Lake Forest,
            the City of Highwood, and the City of Highland Park and the
            County of Lake, Illinois) in order to determine the most
            appropriate use of the property to be conveyed.

        (h) Descriptions of Property.--The exact acreage and legal
    descriptions of the real property to be conveyed by the Secretary under
    subsection (a) and the real property to be conveyed under subsection
    (c)(1)(A) shall be determined by a survey satisfactory

    [[Page 110 STAT. 575]]

    to the Secretary. The cost of the survey shall be borne by the
    transferee selected under subsection (g).
        (i) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS APARTMENT
                              COMPLEX, FORT HOLABIRD, MARYLAND.

        (a) Conveyance Authorized.--Notwithstanding any other provision of
    law, the Secretary of the Army may convey to the existing owner of the
    improvements thereon all right, title, and interest of the United States
    in and to a parcel of real property underlying the Cummins Apartment
    Complex at Fort Holabird, Maryland, that consists of approximately 6
    acres, and any interest the United States may have in the improvements
    thereon.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the owner of the improvements referred to in that
    subsection shall provide compensation to the United States in an amount
    equal to the fair market value (as determined by the Secretary) of the
    property interest to be conveyed.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey that is satisfactory to the Secretary.
        (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. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY
                              PROPERTY, HAMILTON AIR FORCE BASE,
                              CALIFORNIA.

        (a) Application of Section.--The authority provided in subsection
    (b) shall apply only in the event that the purchaser purchases only a
    portion of the Sale Parcel referred to in section 9099 of the Department
    of Defense Appropriations Act, 1993 (Public Law 102-396; 106 Stat. 1924)
    and exercises the purchaser's option to withdraw from the sale as to the
    rest of the Sale Parcel.
        (b) Conveyance Authority in Event of Partial Sale.--The Secretary of
    the Army may convey to the City of Novato, California (in this section
    referred to as the ``City'')--
                (1) that portion of the Sale Parcel (other than Landfill 26
            and an appropriate buffer area around it and the groundwater
            treatment facility site) that is not purchased as provided in
            subsection (a); and
                (2) any of the land referred to in subsection (e) of such
            section 9099 that is not purchased by the purchaser.

        (c) Consideration and Conditions on Conveyance.--The conveyance
    under subsection (b) shall be made as a public benefit transfer to the
    City for the sum of One Dollar, subject to the condition that the
    conveyed property be used for school, classroom, or other educational
    purposes or as a public park or recreation area.
        (d) Subsequent Conveyance by the City.--(1) If, within 10 years
    after the conveyance under subsection (b), the City conveys all or any
    part of the conveyed property to a third party without the use
    restrictions specified in subsection (c), the City shall pay to the
    Secretary of the Army an amount equal to the proceeds

    [[Page 110 STAT. 576]]

    received by the City from the conveyance, minus the demonstrated
    reasonable costs of making the conveyance and of any improvements made
    by the City to the property following its acquisition of the land (but
    only to the extent such improvements increase the value of the property
    conveyed). The Secretary of the Army shall deliver into the applicable
    closing escrow an acknowledgement of receipt of the proceeds and a
    release of the reverter right under subsection (e) as to the affected
    land, effective upon such receipt.
        (2) Until one year after the completion of the cleanup of
    contaminated soil in the Landfill located on the Sale Parcel and
    completion of the groundwater treatment facilities, any conveyance by
    the City must be at a per-acre price for the portion sold that is at
    least equal to the per-acre contract price paid by the purchaser for the
    portion of the Sale Parcel purchased under the Agreement and
    Modification for the purchase of the Sale Parcel by the purchaser.
    Thereafter, any conveyance by the City must be at a price at least equal
    to the fair market value of the portion sold.
        (3) This subsection shall not apply to a conveyance by the City to
    another public or quasi-public agency for public uses of the kind
    described in subsection (c).
        (e) Reversion.--If the Secretary of the Army determines that the
    City has failed to make a payment as required by
    subsection (d)(1) or that any portion of the conveyed property retained
    by the City or conveyed under subsection (d)(3) is not being utilized in
    accordance with subsection (c), title to the applicable portion of such
    property shall revert to the United States at the election of the
    Administrator of the General Services Administration.

        (f) Special Conveyance Regarding Building 138 Parcel.--The Secretary
    of the Army may convey to the purchaser of the Sale Parcel the Building
    138 parcel, which has been designated by the parties as Parcel A4. The
    per-acre price for the portion conveyed under this subsection shall be
    at least equal to the per-acre contract price paid by the purchaser for
    the portion of the Sale Parcel purchased under the Agreement and
    Modification, dated September 25, 1990, as amended.

                            PART II--NAVY CONVEYANCES

    SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUSTRIAL
                              RESERVE PLANT, CALVERTON, NEW YORK.

        (a) Transfer Authorized.--Notwithstanding section 2854 of the
    Military Construction Authorization Act for Fiscal Year 1993 (division B
    of Public Law 102-484; 106 Stat. 2626), as amended by section 2823 of
    the Military Construction Authorization Act for Fiscal Year 1995
    (division B of Public Law 103-337; 108 Stat. 3058), the Secretary of the
    Navy may transfer, without reimbursement, to the administrative
    jurisdiction of the Secretary of Veterans Affairs a parcel of real
    property consisting of approximately 150 acres located adjacent to the
    Calverton National Cemetery, Calverton, New York, and comprising a
    portion of the buffer zone of the Naval Weapons Industrial Reserve
    Plant, Calverton, New York.
        (b) Use of Property.--The Secretary of Veterans Affairs shall use
    the real property transferred under subsection (a) as an addition to the
    Calverton National Cemetery and administer such real property pursuant
    to chapter 24 of title 38, United States Code.

    [[Page 110 STAT. 577]]

        (c) Survey.--The cost of any survey necessary for the transfer of
    jurisdiction of the real property described in subsection (a) from the
    Secretary of the Navy to the Secretary of Veterans Affairs shall be
    borne by the Secretary of Veterans Affairs.
        (d) Additional Terms and Conditions.--The Secretary of the Navy may
    require such additional terms and conditions in connection with the
    transfer under this section as the Secretary of the Navy considers
    appropriate to protect the interests of the United States.
    SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS
                              INDUSTRIAL RESERVE PLANT, CALVERTON, NEW
                              YORK.

        (a) Removal of Reversionary Interest; Addition of Lease Authority.--
    Subsection (c) of section 2833 of the Military Construction
    Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
    337; 108 Stat. 3061) is amended to read as follows:
        ``(c) Lease Authority.--Until such time as the real property
    described in subsection (a) is conveyed by deed, the Secretary may lease
    the property, along with improvements thereon, to the Community
    Development Agency in exchange for security services, fire protection
    services, and maintenance services provided by the Community Development
    Agency for the property.''.
        (b) Conforming Amendment.--Subsection (e) of such section is amended
    by striking out ``subsection (a)'' and inserting in lieu thereof
    ``subsection (a) or a lease under subsection (c)''.
    SEC. 2867. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE
                              AUTHORITY, NAVAL SUPPLY CENTER, OAKLAND,
                              CALIFORNIA.

        Section 2834(b) of the Military Construction Authorization Act for
    Fiscal Year 1993 (division B of Public Law 102-484; 106 Stat. 2614), as
    amended by section 2833 of the Military Construction Authorization Act
    for Fiscal Year 1994 (division B of Public Law 103-160; 107 Stat. 1896)
    and section 2821 of the Military Construction Authorization Act for
    Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3057), is
    further amended by adding at the end the following new paragraphs:
        ``(4) In lieu of entering into a lease under paragraph (1), or in
    place of an existing lease under that paragraph, the Secretary may
    convey, without consideration, the property described in that paragraph
    to the City of Oakland, California, the Port of Oakland, California, the
    City of Alameda, California, or the City of Richmond, California, under
    such terms and conditions as the Secretary considers appropriate.
        ``(5) The exact acreage and legal description of any property
    conveyed under paragraph (4) shall be determined by a survey
    satisfactory to the Secretary. The cost of each survey shall be borne by
    the recipient of the property.''.
    SEC. 2868. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE
                              PLANT, MCGREGOR, TEXAS.

        (a) Conveyance Authorized.--(1) The Secretary of the Navy may
    convey, without consideration, to the City of McGregor, Texas (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 any
    improvements thereon, containing the Naval Weapons Industrial Reserve
    Plant, McGregor, Texas.

    [[Page 110 STAT. 578]]

        (2) After screening the facilities, equipment, and fixtures
    (including special tooling and special test equipment) located on the
    parcel for other uses by the Department of the Navy, the Secretary may
    include in the conveyance under paragraph (1) any facilities, equipment,
    and fixtures on the parcel not to be so used if the Secretary determines
    that manufacturing activities requiring the use of such facilities,
    equipment, and fixtures are likely to continue or be reinstated on the
    parcel after conveyance under paragraph (1).
        (b) Lease Authority.--Until such time as the real property described
    in subsection (a)(1) is conveyed by deed, the Secretary may lease the
    property, along with improvements thereon, to the City in exchange for
    security services, fire protection services, and maintenance services
    provided by the City for the property.

        (c) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the City, directly
    or through an agreement with a public or private entity, use the
    conveyed property (or offer the conveyed property for use) for economic
    redevelopment to replace all or a part of the economic activity being
    lost at the parcel.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)(1)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) or a lease under subsection (b) as the Secretary
    considers appropriate to protect the interests of the United States.
    SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER, MEMPHIS,
                              TENNESSEE.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey to
    the Memphis and Shelby County Port Commission, Memphis, Tennessee (in
    this section referred to as the ``Port''), all right, title, and
    interest of the United States in and to a parcel of real property
    (including any improvements thereon) consisting of approximately 26
    acres that is located at the Carderock Division, Naval Surface Warfare
    Center, Memphis Detachment, Presidents Island, Memphis, Tennessee.
        (b) Consideration.--As consideration for the conveyance of real
    property under subsection (a), the Port shall--
                (1) grant to the United States a restrictive easement in and
            to a parcel of real property consisting of approximately 100
            acres that is adjacent to the Memphis Detachment, Presidents
            Island, Memphis, Tennessee; and
                (2) if the fair market value of the easement granted under
            paragraph (1) is less than the fair market value of the real
            property conveyed under subsection (a), provide the United
            States such additional consideration as the Secretary and the
            Port jointly determine appropriate so that the value of the
            consideration received by the United States under this
            subsection is equal to or greater than the fair market value of
            the real property conveyed under subsection (a).

        (c) Condition of Conveyance.--The conveyance authorized by
    subsection (a) shall be carried out in accordance with the provisions of
    the Land Exchange Agreement between the United States

    [[Page 110 STAT. 579]]

    and the Memphis and Shelby County Port Commission, Memphis, Tennessee.
        (d) Determination of Fair Market Value.--The Secretary shall
    determine the fair market value of the real property to be conveyed
    under subsection (a) and of the easement to be granted under subsection
    (b)(1). Such determinations shall be final.
        (e) Use of Proceeds.--The Secretary shall deposit any proceeds
    received under subsection (b)(2) as consideration for the conveyance of
    real property authorized under subsection (a) 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) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a) and
    the easement to be granted under subsection (b)(1) shall be determined
    by a survey satisfactory to the Secretary. The cost of the survey shall
    be borne by the Port.
        (g) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance
    authorized by subsection (a) and the easement granted under subsection
    (b)(1) as the Secretary considers appropriate to protect the interests
    of the United States.

    SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN, ILLINOIS.

        (a) Conveyance Authorized.--Subject to subsection (b), the Secretary
    of the Navy may convey to any transferee selected under subsection (i)
    all right, title, and interest of the United States in and to a parcel
    of real property (including any improvements thereon) at Fort Sheridan,
    Illinois, consisting of approximately 182 acres and comprising the Navy
    housing areas at Fort Sheridan.
        (b) Requirement for Federal Screening of Property.--The Secretary
    may not carry out the conveyance of property authorized by subsection
    (a) unless the Secretary determines that no department or agency of the
    Federal Government will accept the transfer of the property.
        (c) Consideration.--(1) As consideration for the conveyance under
    subsection (a), the transferee selected under subsection (i) shall--
                (A) convey to the United States a parcel of real property
            that meets the requirements of subsection (d);
                (B) design for and construct on the property conveyed under
            subparagraph (A) such housing facilities (including support
            facilities and infrastructure) to replace the housing facilities
            conveyed pursuant to the authority in subsection (a) as the
            Secretary considers appropriate;
                (C) pay the cost of relocating members of the Armed Forces
            residing in the housing facilities located on the real property
            conveyed pursuant to the authority in subsection (a) to the
            housing facilities constructed under subparagraph (B);
                (D) provide for the education of dependents of such members
            under subsection (e); and
                (E) carry out such activities for the operation,
            maintenance, and improvement of the facilities constructed under
            subparagraph (B) as the Secretary and the transferee jointly
            determine appropriate.

    [[Page 110 STAT. 580]]

        (2) The Secretary shall ensure that the fair market value of the
    consideration provided by the transferee under paragraph (1) is not less
    than the fair market value of the property interest conveyed by the
    Secretary under subsection (a).
        (d) Requirements Relating to Property To Be Conveyed to United
    States.--The property interest conveyed to the United States under
    subsection (c)(1)(A) by the transferee selected under subsection (i)
    shall--
                (1) be located not more than 25 miles from the Great Lakes
            Naval Training Center, Illinois;
                (2) be located in a neighborhood or area having social and
            economic conditions similar to the social and economic
            conditions of the area in which Fort Sheridan is located; and
                (3) be acceptable to the Secretary.

        (e) Education of Dependents of Members of the Armed Forces.--In
    providing for the education of dependents of members of the Armed Forces
    under subsection (c)(1)(D), the transferee selected under subsection (i)
    shall ensure that such dependents may enroll at the schools of one or
    more school districts in the vicinity of the real property conveyed to
    the United States under subsection (c)(1)(A) which schools and
    districts--
                (1) meet such standards for schools and school districts as
            the Secretary shall establish; and
                (2) will continue to meet such standards after the
            enrollment of such dependents regardless of the receipt by such
            school districts of Federal impact aid.

        (f) Interim Relocation of Members of the Armed Forces.--Pending
    completion of the construction of all the housing facilities proposed to
    be constructed under subsection (c)(1)(B) by the transferee selected
    under subsection (i), the Secretary may relocate--
                (1) members of the Armed Forces residing in housing
            facilities located on the property to be conveyed pursuant to
            the authority in subsection (a) to the housing facilities that
            have been constructed by the transferee under such subsection
            (c)(1)(B); and
                (2) other Government tenants located on such property to
            other facilities.

        (g) Applicability of Certain Agreements.--The property conveyed by
    the Secretary pursuant to the authority in subsection (a) shall be
    subject to the Memorandum of Understanding concerning the Transfer of
    Certain Properties at Fort Sheridan, Illinois, dated August 8, 1991,
    between the Department of the Army and the Department of the Navy.
        (h) Determination of Fair Market Value.--The Secretary shall
    determine the fair market value of the real property interest to be
    conveyed under subsection (a) and of the consideration to be provided
    under subsection (c)(1). Such determination shall be final.
        (i) Selection of Transferee.--(1) The Secretary shall use
    competitive procedures for the selection of a transferee under
    subsection (a).
        (2) In evaluating the offers of prospective transferees, the
    Secretary shall--
                (A) consider such criteria as the Secretary considers to be
            appropriate to determine whether prospective transferees will be
            able to satisfy the consideration requirements specified in
            subsection (c)(1); and

    [[Page 110 STAT. 581]]

                (B) consult with the communities and jurisdictions in the
            vicinity of Fort Sheridan (including the City of Lake Forest,
            the City of Highwood, and the City of Highland Park and the
            County of Lake, Illinois) in order to determine the most
            appropriate use of the property to be conveyed.

        (j) Descriptions of Property.--The exact acreage and legal
    descriptions of the real property to be conveyed by the Secretary under
    subsection (a) and the real property to be conveyed under subsection
    (c)(1)(A) shall be determined by a survey satisfactory to the Secretary.
    The cost of the survey shall be borne by the transferee selected under
    subsection (i).
        (k) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION,
                              STOCKTON, CALIFORNIA.

        (a) Conveyance Authorized.--Subject to subsection (b), the Secretary
    of the Navy may convey to the Port of Stockton, California (in this
    section referred to as the ``Port''), all right, title, and interest of
    the United States in and to a parcel of real property, including any
    improvements thereon, consisting of approximately 1,450 acres at the
    Naval Communication Station, Stockton, California.
        (b) Requirement for Federal Screening of Property.--The Secretary
    may not carry out the conveyance of property authorized by subsection
    (a) unless the Secretary determines that no department or agency of the
    Federal Government will accept the transfer of the property.
        (c) Interim Lease.--Until such time as the real property described
    in subsection (a) is conveyed by deed, the Secretary may lease the
    property, along with improvements thereon, to the Port under terms and
    conditions satisfactory to the Secretary.
        (d) Consideration.--The conveyance may be made as a public benefit
    conveyance for port development as defined in section 203 of the Federal
    Property and Administrative Services Act of 1949 (40 U.S.C. 484) if the
    Port satisfies the criteria in such section and the regulations
    prescribed to implement such section. If the Port fails to qualify for a
    public benefit conveyance and still desires to acquire the property, the
    Port shall pay to the United States an amount equal to the fair market
    value of the property to be conveyed, as determined by the Secretary.
        (e) Federal Lease of Conveyed Property.--As a condition for transfer
    of this property under subparagraph (a), the Secretary may require that
    the Port lease to the Department of Defense or any other Federal agency
    all or any part of the property being used by the Federal Government at
    the time of conveyance. Any such lease shall be made under the same
    terms and conditions as in force at the time of the conveyance. Such
    terms and conditions will continue to include payment to the Port for
    maintenance of facilities leased to the Federal Government. Such
    maintenance of the Federal premises shall be to the reasonable
    satisfaction of the United States,
    or as required by all applicable Federal, State, and local laws and
    ordinances.

        (f) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a)

    [[Page 110 STAT. 582]]

    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Port.
        (g) Additional Terms.--The Secretary may require such additional
    terms and conditions in connection with the conveyance under subsection
    (a) or the lease under subsection (c) as the Secretary considers
    appropriate to protect the interests of the United States.
    SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE CORPS
                              AIR STATION, MIRAMAR, CALIFORNIA.

        (a) Lease Authorized.--Notwithstanding section 2692(a)(1) of title
    10, United States Code, the Secretary of the Navy may lease to the City
    of San Diego, California (in this subsection referred to as the
    ``City''), the parcel of real property, including improvements thereon,
    described in subsection (b) in order to permit the City to carry out
    activities on the parcel relating to solid waste management, including
    the operation and maintenance of one or more solid waste landfills.
    Pursuant to the lease, the Secretary may authorize the City to construct
    and operate on the parcel facilities related to solid waste management,
    including a sludge processing facility.
        (b) Covered Property.--The parcel of property to be leased under
    subsection (a) is a parcel of real property consisting of approximately
    1,400 acres that is located at Naval Air Station, Miramar, California,
    or Marine Corps Air Station, Miramar, Cali- fornia.
        (c) Lease Term.--The lease authorized under subsection (a) shall be
    for an initial term of not more than 50 years. Under the lease, the
    Secretary may provide the City with an option to extend the lease for
    such number of additional periods of such length as the Secretary
    considers appropriate.
        (d) Form of Consideration.--The Secretary may provide in the lease
    under subsection (a) for the provision by the City of in-kind
    consideration under the lease.
        (e) Use of Money Rentals.--In such amounts as are provided in
    advance in appropriation Acts, the Secretary may use money rentals
    received by the Secretary under the lease authorized under subsection
    (a) to carry out the following programs at Department of the Navy
    installations that utilize the solid waste landfill or landfills located
    on the leased property:
                (1) Environmental programs, including natural resource
            management programs, recycling programs, and pollution
            prevention programs.
                (2) Programs to improve the quality of military life,
            including programs to improve military unaccompanied housing and
            military family housing.

        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the lease under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
        (g) Definitions.--In this section, the terms ``sludge'', ``solid
    waste'', and ``solid waste management'' have the meanings given such
    terms in paragraphs (26A), (27), and (28), respectively, of section 1004
    of the Solid Waste Disposal Act (42 U.S.C. 6903).

    [[Page 110 STAT. 583]]

                         PART III--AIR FORCE CONVEYANCES

    SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE,
                              SOUTH CAROLINA.

        (a) Land Acquisition.--By means of an exchange of property,
    acceptance as a gift, or other means that do not require the use of
    appropriated funds, the Secretary of the Air Force may acquire all
    right, title, and interest in and to a parcel of real property (together
    with any improvements thereon) consisting of approximately 1,100 acres
    and located adjacent to the eastern end of Shaw Air Force Base, South
    Carolina, and extending to Stamey Livestock Road in Sumter County, South
    Carolina.
        (b) Land Exchange Authorized.--For purposes of acquiring the real
    property described in subsection (a), the Secretary may participate in a
    land exchange and convey all right, title, and interest of the United
    States in and to a parcel of real property in the possession of the Air
    Force if--
                (1) the Secretary determines that the land exchange is in
            the best interests of the Air Force; and
                (2) the fair market value of the parcel to be conveyed by
            the Secretary does not exceed the fair market value of the
            parcel to be acquired by the Secretary.

        (c) Determinations of Fair Market Value.--The Secretary shall
    determine the fair market value of the parcels of real property to be
    exchanged, accepted, or otherwise acquired pursuant to subsection (a)
    and exchanged pursuant to subsection (b). Such determinations shall be
    final.
        (d) Reversion of Gift Conveyance.--If the Secretary acquires the
    real property described in subsection (a) by way of gift, the Secretary
    may accept in the deed of conveyance terms or conditions that require
    that the land be reconveyed to the donor, or the heirs of the donor, if
    Shaw Air Force Base ceases operations and is closed.
        (e) Descriptions of Property.--The exact acreage and legal
    descriptions of the parcels of real property to be exchanged, accepted,
    or otherwise acquired pursuant to subsection (a) and exchanged pursuant
    to subsection (b) shall be determined by a survey satisfactory to the
    Secretary.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the acquisition under
    subsection (a) or conveyance under subsection (b) as the Secretary
    considers appropriate to protect the interests of the United States.

    SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

        (a) Conveyance to Private Person Authorized.--The Secretary of the
    Air Force may convey to such private person as the Secretary considers
    appropriate, all right, title, and interest of the United States in and
    to a parcel of real property
    consisting of approximately 31.69 acres that is located at Elmendorf Air
    Force Base, Alaska, and identified in land lease W-95-507-ENG-58.

        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the purchaser shall pay to the United States an amount
    equal to the fair market value of the real property to be conveyed, as
    determined by the Secretary. In determining the fair market value of the
    real property, the Secretary shall consider

    [[Page 110 STAT. 584]]

    the property as encumbered by land lease W-95-507-ENG-58, with an
    expiration date of June 13, 2024.
        (c) Condition of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the condition that the purchaser of
    the property--
                (1) permit the lease of the apartment complex located on the
            property by members of the Armed Forces stationed at Elmendorf
            Air Force Base and their dependents; and
                (2) maintain the apartment complex in a condition suitable
            for such leases.

        (d) Deposit of Proceeds.--The Secretary shall deposit the amount
    received from the purchaser under subsection (b) in the special account
    established under section 204(h)(2) of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
        (e) 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 purchaser of the real property.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2876. LAND CONVEYANCE, RADAR BOMB SCORING SITE, FORSYTH,
                              MONTANA.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the City of Forsyth, Montana (in this
    section referred to as the ``City''), all right, title, and interest of
    the United States in and to the parcel of property (including any
    improvements thereon) consisting of approximately 58 acres located in
    Forsyth, Montana, which has served as a support complex and recreational
    facilities for the Radar Bomb Scoring Site, Forsyth, Montana.
        (b) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the City--
                (1) utilize the property and recreational facilities
            conveyed under that subsection for housing and recreation
            purposes; or
                (2) enter into an agreement with an appropriate public or
            private entity to lease such property and facilities to that
            entity for such purposes.

        (c) Reversion.--If the Secretary determines at any time that the
    property conveyed under subsection (a) is not being utilized in
    accordance with paragraph (1) or paragraph (2) of subsection (b), all
    right, title, and interest in and to the conveyed 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.
        (d) Description of Property.--The exact acreage and legal
    description of the property conveyed under this section shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the City.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with

    [[Page 110 STAT. 585]]

    the conveyance under this section as the Secretary determines
    appropriate to protect the interests of the United States.
    SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL,
                              WYOMING.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the Northwest College Board of
    Trustees (in this section referred to as the ``Board''), all right,
    title, and interest of the United States in and to a parcel of real
    property (including any improvements thereon) consisting of
    approximately 24 acres located in Powell, Wyoming, which has served as
    the location of a support complex, recreational facilities, and housing
    facilities for the Radar Bomb Scoring Site, Powell, Wyoming.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the Board use the
    property conveyed under that subsection for housing and recreation
    purposes and for such other purposes as the Secretary and the Board
    jointly determine appropriate.
        (c) Reversionary Interest.--During the five-year period beginning on
    the date that the Secretary makes the conveyance authorized under
    subsection (a), if the Secretary determines that the conveyed property
    is not being used in accordance with subsection (b), all right, title,
    and interest in and to the conveyed 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.
        (d) Description of Property.--The exact acreage and legal
    description of the property conveyed under this section shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the Board.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE, FLORIDA.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to Highlands County, Florida (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, together with
    any improvements thereon, located within the boundaries of the Avon Park
    Air Force Range near Sebring, Florida, which has previously served as
    the location of
    a support complex and recreational facilities for the Avon Park Air
    Force Range.

        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the County,
    directly or through an agreement with an appropriate public or private
    entity, use the conveyed property, including the support complex and
    recreational facilities, for operation of a juvenile or other
    correctional facility.
        (c) Reversionary Interest.--If the Secretary determines at any time
    that the property conveyed under subsection (a) is not being used in
    accordance with subsection (b), all right, title, and interest in 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.

    [[Page 110 STAT. 586]]

        (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 County.
        (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.

                Subtitle E--Land Conveyances Involving Utilities

    SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT DIX, NEW
                              JERSEY.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    Burlington County, New Jersey (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 at Fort Dix, New Jersey, consisting of
    approximately six acres and containing a resource recovery facility,
    known as the Fort Dix resource recovery facility.
        (b) Related Easements.--The Secretary may grant to the County any
    easement that is necessary for access to and operation of the resource
    recovery facility conveyed under subsection (a).
        (c) Requirement Relating to Conveyance.--The Secretary may not carry
    out the conveyance of the resource recovery facility authorized by
    subsection (a) unless the County agrees to accept the facility in its
    existing condition at the time of the conveyance.
        (d) Conditions on Conveyance.--The conveyance of the resource
    recovery facility authorized by subsection (a) is subject to the
    following conditions:
                (1) That the County provide refuse and steam service to Fort
            Dix, New Jersey, at the rate established by the appropriate
            Federal or State regulatory authority.
                (2) That the County comply with all applicable environmental
            laws and regulations (including any permit or license
            requirements) relating to the resource recovery facility.
                (3) That the County assume full responsibility for
            ownership, operation, maintenance, repair, and all regulatory
            compliance requirements for the resource recovery facility.
                (4) That the County not commence any expansion of the
            resource recovery facility without approval of such expansion by
            the Secretary.

        (e) Description of the Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a),
    and of any easements to be granted under subsection (b), shall be
    determined by a survey satisfactory to the Secretary. The cost of such
    survey shall be borne by the County.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) and the grant of any easement under subsection (b) as the
    Secretary considers appropriate to protect the interests of the United
    States.

    [[Page 110 STAT. 587]]

    SEC. 2882. CONVEYANCE OF WATER AND WASTEWATER TREATMENT PLANTS,
                              FORT GORDON, GEORGIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the city of Augusta, Georgia (in this section referred to as the
    ``City''), all right, title, and interest of the United States to
    several parcels of real property located at Fort Gordon, Georgia, and
    consisting of approximately seven acres each. The parcels are improved
    with a water filtration plant, water distribution system with storage
    tanks, sewage treatment plant, and sewage collection system.
        (b) Related Easements.--The Secretary may grant to the City any
    easement that is necessary for access to the real property conveyed
    under subsection (a) and operation of the water and wastewater treatment
    plants and distribution and collection systems conveyed under subsection
    (a).
        (c) Requirement Relating to Conveyance.--The Secretary may not carry
    out the conveyance of the water and wastewater treatment plants and
    distribution and collection systems authorized by subsection (a) unless
    the City agrees to accept the water and wastewater treatment plants and
    distribution and collection systems in their existing condition at the
    time of the conveyance.
        (d) Conditions on Conveyance.--The conveyance authorized by
    subsection (a) is subject to the following conditions:
                (1) That the City provide water and sewer service to Fort
            Gordon, Georgia, at a rate established by the appropriate
            Federal or State regulatory authority.
                (2) That the City comply with all applicable environmental
            laws and regulations (including any permit or license
            requirements) regarding the real property conveyed under subsec-
            tion (a).
                (3) That the City assume full responsibility for ownership,
            operation, maintenance, repair, and all regulatory compliance
            requirements for the water and wastewater treatment plants and
            distribution and collection systems.
                (4) That the City not commence any expansion of the water
            and wastewater treatment plants and distribution and collection
            systems without approval of such expansion by the Secretary.

        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a),
    and of any easements granted under subsection (b), shall be determined
    by a survey satisfactory to the Secretary. The cost of such survey shall
    be borne by the City.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) and the grant of any easement under subsection (b) as the
    Secretary considers appropriate to protect the interests of the United
    States.
    SEC. 2883. CONVEYANCE OF ELECTRICITY DISTRIBUTION SYSTEM, FORT
                              IRWIN, CALIFORNIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the Southern California Edison Company, California (in this section
    referred to as the ``Company''), all right, title, and interest of the
    United States in and to the electricity distribution system located at
    Fort Irwin, California.

    [[Page 110 STAT. 588]]

        (b) Description of System and Conveyance.--The electricity
    distribution system authorized to be conveyed under subsection (a)
    consists of approximately 115 miles of electricity distribution lines
    (including poles, switches, reclosers, transformers, regulators,
    switchgears, and service lines) and includes the equipment, fixtures,
    structures, and other improvements the Federal Government utilizes to
    provide electricity services at Fort Irwin. The system does not include
    any real property.
        (c) Related Easements.--The Secretary may grant to the Company any
    easement that is necessary for access to and operation of the
    electricity distribution system conveyed under subsection (a).
        (d) Requirement Relating to Conveyance.--The Secretary may not carry
    out the electricity distribution system authorized by subsection (a)
    unless the Company agrees to accept the electricity distribution system
    in its existing condition at the time of the conveyance.
        (e) Conditions on Conveyance.--The conveyance authorized by
    subsection (a) is subject to the following conditions:
                (1) That the Company provide electricity service to Fort
            Irwin, California, at a rate established by the appropriate
            Federal or State regulatory authority.
                (2) That the Company comply with all applicable
            environmental laws and regulations (including any permit or
            license requirements) regarding the electricity distribution
            system.
                (3) That the Company assume full responsibility for
            ownership, operation, maintenance, repair, and all regulatory
            compliance requirements for the electricity distribution system.
                (4) That the Company not commence any expansion of the
            electricity distribution system without approval of such
            expansion by the Secretary.

        (f) Description of Easement.--The exact acreage and legal
    description of any easement granted under subsection (c) shall be
    determined by a survey satisfactory to the Secretary. The cost of such
    survey shall be borne by the Company.
        (g) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) and the grant of any easement under subsection (c) as the
    Secretary considers appropriate to protect the interests of the United
    States.
    SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICKETT,
                              VIRGINIA.

        (a) Authority To Convey.--(1) The Secretary of the Army may convey
    to the Town of Blackstone, Virginia (in this section referred to as the
    ``Town''), all right, title, and interest of the United States in and to
    the property described in paragraph (2).
        (2) The property referred to in paragraph (1) is the following
    property located at Fort Pickett, Virginia:
                (A) A parcel of real property consisting of approximately 10
            acres, including a reservoir and improvements thereon, the site
            of the Fort Pickett water treatment plant.
                (B) Any equipment, fixtures, structures, or other
            improvements (including any water transmission lines, water
            distribution and service lines, fire hydrants, water pumping
            stations, and other improvements) not located on the parcel
            described in subparagraph (A) that are jointly identified by the
            Secretary

    [[Page 110 STAT. 589]]

            and the Town as owned and utilized by the Federal Government in
            order to provide water to and distribute water at Fort Pickett.

        (b) Related Easements.--The Secretary may grant to the Town the
    following easements relating to the conveyance of the property
    authorized by subsection (a):
                (1) Such easements, if any, as the Secretary and the Town
            jointly determine are necessary in order to provide access to
            the water distribution system referred to in paragraph (2) of
            such subsection for maintenance, safety, and other purposes.
                (2) Such easements, if any, as the Secretary and the Town
            jointly determine are necessary in order to provide access to
            the finished water lines from the system to the Town.
                (3) Such rights of way appurtenant, if any, as the Secretary
            and the Town jointly determine are necessary in order to satisfy
            requirements imposed by any Federal, State, or municipal agency
            relating to the maintenance of a buffer zone around the water
            distribution system.

        (c) Water Rights.--The Secretary shall grant to the Town as part of
    the conveyance under subsection (a) all right, title, and interest of
    the United States in and to any water of the Nottoway River, Virginia,
    that is connected with the reservoir referred to in paragraph (2)(A) of
    such subsection. The grant of such water rights shall not impair the
    right that any other local jurisidiction may have to withdraw water from
    the Nottoway River, on or after the date of the enactment of this Act,
    pursuant to the law of the Commonwealth of Virginia.

        (d) Requirements Relating to Conveyance.--(1) The Secretary may not
    carry out the conveyance of the water distribution system authorized
    under subsection (a) unless the Town agrees to accept the system in its
    existing condition at the time of the conveyance.
        (2) The Secretary shall complete any environmental removal or
    remediation required under the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) with
    respect to the system to be conveyed under this section before carrying
    out the conveyance.
        (e) Conditions on Conveyance.--The conveyance authorized in
    subsection (a) shall be subject to the following conditions:
                (1) That the Town reserve for provision to Fort Pickett, and
            provide to Fort Pickett on demand, not less than 1,500,000
            million gallons per day of treated water from the water
            distribution system.
                (2) That the Town provide water to and distribute water at
            Fort Pickett at a rate established by the appropriate Federal or
            State regulatory authority.
                (3) That the Town maintain and operate the water
            distribution system in compliance with all applicable Federal
            and State environmental laws and regulations (including any
            permit and license requirements).

        (f) Description of Property.--The exact legal description of the
    property to be conveyed under subsection (a), of any easements granted
    under subsection (b), and of any water rights granted under subsection
    (c) shall be determined by a survey and other means satisfactory to the
    Secretary. The cost of any survey or other services performed at the
    direction of the Secretary under the authority in the preceding sentence
    shall be borne by the Town.

    [[Page 110 STAT. 590]]

        (g) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance
    authorized under subsection (a), the easements granted under subsection
    (b), and the water rights granted under subsection (c) that the
    Secretary considers appropriate to protect the interests of the United
    States.

                            Subtitle F--Other Matters

    SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL
                              PURPOSES.

        Section 2008 of title 10, United States Code, is amended by striking
    out ``section 10'' and all that follows through the period at the end
    and inserting in lieu thereof ``construction, as defined in section
    8013(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
    7713(3)), or to carry out section 8008 of such Act (20 U.S.C. 7708),
    relating to the provision of assistance to certain school facilities
    under the impact aid program.''.
    SEC. 2892. <<NOTE: 10 USC 2805 note.>>  DEPARTMENT OF DEFENSE
                              LABORATORY REVITALIZATION DEMONSTRATION
                              PROGRAM.

        (a) Program Authorized.--The Secretary of Defense may carry out a
    program (to be known as the ``Department of Defense Laboratory
    Revitalization Demonstration Program'') for the revitalization of
    Department of Defense laboratories. Under the program, the Secretary may
    carry out minor military construction projects in accordance with
    subsection (b) and other applicable law to improve Department of Defense
    laboratories covered by the program.
        (b) Increased Maximum Amounts Applicable to Minor Construction
    Projects.--For purpose of any military construction project carried out
    under the program--
                (1) the amount provided in the second sentence of subsection
            (a)(1) of section 2805 of title 10, United States Code, shall be
            deemed to be $3,000,000;
                (2) the amount provided in subsection (b)(1) of such section
            shall be deemed to be $1,500,000; and
                (3) the amount provided in subsection (c)(1)(B) of such
            section shall be deemed to be $1,000,000.

        (c) Program Requirements.--(1) Not later than 30 days before
    commencing the program, the Secretary shall--
                (A) designate the Department of Defense laboratories at
            which construction may be carried out under the program; and
                (B) establish procedures for the review and approval of
            requests from such laboratories to carry out such construction.

        (2) The laboratories designated under paragraph (1)(A) may not
    include Department of Defense laboratories that are contractor owned.
        (3) <<NOTE: Notification.>>  The Secretary shall notify Congress of
    the laboratories designated under paragraph (1)(A).

        (d) Report.--Not later than February 1, 1998, the Secretary shall
    submit to Congress a report on the program. The report shall include the
    Secretary's conclusions and recommendations regarding the desirability
    of extending the authority set forth in subsection (b) to cover all
    Department of Defense laboratories.

    [[Page 110 STAT. 591]]

        (e) Exclusivity of Program.--Nothing in this section may be
    construed to limit any other authority provided by law for any military
    construction project at a Department of Defense laboratory covered by
    the program.
        (f) Definitions.--In this section:
                (1) The term ``laboratory'' includes--
                        (A) a research, engineering, and development center;
                        (B) a test and evaluation activity owned, funded,
                    and operated by the Federal Government through the
                    Department of Defense; and
                        (C) a supporting facility of a laboratory.
                (2) The term ``supporting facility'', with respect to a
            laboratory, means any building or structure that is used in
            support of research, development, test, and evaluation at the
            laboratory.

        (g) Expiration of Authority.--The Secretary may not commence a
    construction project under the program after September 30, 1998.
    SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF MISSISSIPPI TO
                              USE NAVY PROPERTY AT NAVAL CONSTRUCTION
                              BATTALION CENTER, GULFPORT, MISSISSIPPI.

        (a) Joint Use Agreement Authorized.--The Secretary of the Navy may
    enter into an agreement with the Port Authority of the State of
    Mississippi (in this section referred to as the ``Port Authority''),
    under which the Port Authority may use real property comprising up to 50
    acres located at the Naval Construction Battalion Center, Gulfport,
    Mississippi (in this section referred to as the ``Center'').
        (b) Term of Agreement.--The agreement authorized under subsection
    (a) may be for an initial period of not more than 15 years. Under the
    agreement, the Secretary shall provide the Port Authority with an option
    to extend the agreement for at least three additional periods of five
    years each.
        (c) Conditions on Use.--The agreement authorized under subsection
    (a) shall require the Port Authority--
                (1) to suspend operations under the agreement in the event
            Navy contingency operations are conducted at the Center; and
                (2) to use the property covered by the agreement in a manner
            consistent with Navy operations conducted at the Center.

        (d) Consideration.--(1) As consideration for the use of the property
    covered by the agreement under subsection (a), the Port Authority shall
    pay to the Navy an amount equal to the fair market rental value of the
    property, as determined by the Secretary taking into consideration the
    Port Authority's use of the property.
        (2) The Secretary may include a provision in the agreement requiring
    the Port Authority--
                (A) to pay the Navy an amount (as determined by the
            Secretary) to cover the costs of replacing at the Center any
            facilities vacated by the Navy on account of the agreement or to
            construct suitable replacement facilities for the Navy; and
                (B) to pay the Navy an amount (as determined by the
            Secretary) for the costs of relocating Navy operations from the
            vacated facilities to the replacement facilities.

        (e) <<NOTE: Reports.>>  Congressional Notification.--The Secretary
    may not enter into the agreement authorized by subsection (a) until the

    [[Page 110 STAT. 592]]

    end of the 21-day period beginning on the date on which the Secretary
    submits to Congress a report containing an explanation of the terms of
    the proposed agreement and a description of the consideration that the
    Secretary expects to receive under the agreement.

        (f) Use of Payment.--(1) In such amounts as are provided in advance
    in appropriation Acts, the Secretary may use amounts paid under
    subsection (d)(1) to pay for general supervision, administration, and
    overhead expenses and for improvement, maintenance, repair,
    construction, or restoration of the roads, railways, and facilities
    serving the Center.
        (2) In such amounts as are provided in advance in appropriation
    Acts, the Secretary may use amounts paid under subsection (d)(2) to pay
    for constructing new facilities, or making modifications to existing
    facilities, that are necessary to replace facilities vacated by the Navy
    on account of the agreement under subsection (a) and for relocating
    operations of the Navy from the vacated facilities to replacement
    facilities.
        (g) Construction by Port Authority.--The Secretary may authorize the
    Port Authority to demolish existing facilities located on the property
    covered by the agreement under subsection (a) and, consistent with the
    restriction specified in subsection (c)(2), construct new facilities on
    the property for joint use by the Port Authority and the Navy.
        (h) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the agreement
    authorized under subsection (a) as the Secretary considers appropriate
    to protect the interests of the United States.
    SEC. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND
                              MARINE CORPS AIR STATION, MIRAMAR,
                              CALIFORNIA.

        The Secretary of the Navy may not enter into any agreement that
    provides for or permits civil aircraft to regularly use Naval Air
    Station or Marine Corps Air Station, Miramar, California.
    SEC. 2895. REPORT REGARDING ARMY WATER CRAFT SUPPORT FACILITIES
                              AND ACTIVITIES.

        Not later than February 15, 1996, the Secretary of the Army shall
    submit to Congress a report setting forth--
                (1) the location, assets, and mission of each Army facility,
            active or reserve component, that supports water transportation
            operations;
                (2) an infrastructure inventory and utilization rate of each
            Army facility supporting water transportation operations;
                (3) options for consolidating these operations to reduce
            overhead; and
                (4) actions that can be taken to respond affirmatively to
            requests from the residents of Marcus Hook, Pennsylvania, to
            close the Army Reserve facility located in Marcus Hook and make
            the facility available for use by the community.

    SEC. 2896. RESIDUAL VALUE REPORTS.

        (a) Reports Required.--The Secretary of Defense, in coordination
    with the Director of the Office of Management and Budget, shall submit
    to the congressional defense committees status reports on the results of
    residual value negotiations between the United States and Germany. Such
    status reports shall be submitted within

    [[Page 110 STAT. 593]]

    30 days after the receipt of such reports by the Office of Management
    and Budget.
        (b) Content of Status Reports.--The status reports required by
    subsection (a) shall include the following information:
                (1) The estimated residual value of United States capital
            value and improvements to facilities in Germany that the United
            States has turned over to Germany.
                (2) The actual value obtained by the United States for each
            facility or installation turned over to Germany.
                (3) The reasons for any difference between the estimated and
            actual value obtained.
    SEC. 2897. SENSE OF CONGRESS AND REPORT REGARDING FITZSIMONS ARMY
                              MEDICAL CENTER, COLORADO.

        (a) Findings.--Congress makes the following findings:
                (1) Fitzsimons Army Medical Center in Aurora, Colorado, was
            approved for closure in 1995 under the Defense Base Closure and
            Realignment Act of 1990 (part A of title XXIX of Public Law 101-
            510; 10 U.S.C. 2687 note).
                (2) The University of Colorado Health Sciences Center and
            the University of Colorado Hospital Authority are in urgent need
            of space to maintain their ability to deliver health care to
            meet the growing demand for their services.
                (3) Reuse of the Fitzsimons Army Medical Center at the
            earliest opportunity would provide significant benefit to the
            cities of Aurora, Colorado, and Denver, Colorado.
                (4) Reuse of the Fitzsimons Army Medical Center by the
            communities in the vicinity of the center will ensure that the
            center is fully utilized, thereby providing a benefit to such
            communities.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) determinations as to the use by other departments and
            agencies of the Federal Government of buildings and property at
            military installations approved for closure under the Defense
            Base Closure and Realignment Act of 1990, including Fitzsimons
            Army Medical Center, Colorado, should be completed as soon as
            practicable;
                (2) the Secretary of Defense should consider the expedited
            transfer of appropriate facilities (including facilities that
            remain operational) at such installations to the redevelopment
            authorities for such installations in order to ensure continuity
            of use of such facilities after the closure of such
            installations, in particular, the Secretary should consider the
            expedited transfer of the Fitzsimons Army Medical Center because
            of the significant preparation underway by the redevelopment
            authority concerned;
                (3) the Secretary should not enter into leases with
            redevelopment authorities for facilities at such installations
            until the Secretary determines that such leases fall within the
            categorical exclusions established by the Secretary pursuant to
            the National Environmental Policy Act (42 U.S.C. 4321 et seq.).

        (c) Report.--(1) Not later than 180 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to the
    congressional defense committees a report on the closure and
    redevelopment of Fitzsimons Army Medical Center.
        (2) The report shall include the following:

    [[Page 110 STAT. 594]]

                (A) The results of the determinations as to the use of
            buildings and property at Fitzsimons Army Medical Center by
            other departments and agencies of the Federal Government under
            section 2905(b)(1) of the Defense Base Closure and Realignment
            Act of 1990.
                (B) A description of any actions taken to expedite such
            determinations.
                (C) A discussion of any impediments raised as a result of
            such determinations to the transfer or lease of Fitzsimons Army
            Medical Center.
                (D) A description of any actions taken by the Secretary to
            lease Fitzsimons Army Medical Center to the redevelopment
            authority.
                (E) The results of any environmental reviews under the
            National Environmental Policy Act in which such a lease would
            fall into the categorical exclusions established by the
            Secretary of the Army.
                (F) The results of the environmental baseline survey
            regarding Fitzsimons Army Medical Center and a finding of
            suitability or nonsuitability.

     TITLE XXIX <<NOTE: Illinois Land Conservation Act of 1995. 16 USC 1609
       note.>> --LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT,
    ILLINOIS

    SEC. 2901. SHORT TITLE.

        This title may be cited as the ``Illinois Land Conservation Act of
    1995''.

    SEC. 2902. DEFINITIONS.

        For purposes of this title, the following definitions apply:
                (1) Administrator.--The term ``Administrator'' means the
            Administrator of the United States Environmental Protection
            Agency.
                (2) Agricultural purposes.--The term ``agricultural
            purposes'' means the use of land for row crops, pasture, hay,
            and grazing.
                (3) Arsenal.--The term ``Arsenal'' means the Joliet Army
            Ammunition Plant located in the State of Illinois.
                (4) Arsenal land use concept.--The term ``Arsenal land use
            concept'' means the land use proposals that were developed and
            unanimously approved on May 30, 1995, by the Joliet Arsenal
            Citizen Planning Commission.
                (5) CERCLA.--The term ``CERCLA'' means the Comprehensive
            Environmental Response, Compensation, and Liability Act of 1980
            (42 U.S.C. 9601 et seq.).
                (6) Environmental law.--The term ``environmental law'' means
            all applicable Federal, State, and local laws, regulations, and
            requirements related to protection of human health, natural and
            cultural resources, or the environment. Such term includes
            CERCLA, the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.),
            the Federal Water Pollution Control Act (33 U.S.C. 1251 et
            seq.), the Clean Air Act (42 U.S.C. 7401 et seq.), the Federal
            Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et
            seq.), the Toxic Substances Control Act (15

    [[Page 110 STAT. 595]]

            U.S.C. 2601 et seq.), and the Safe Drinking Water Act (42 U.S.C.
            300f et seq.).
                (7) Hazardous substance.--The term ``hazardous substance''
            has the meaning given such term by section 101(14) of CERCLA (42
            U.S.C. 9601(14)).
                (8) MNP.--The term ``MNP'' means the Midewin National
            Tallgrass Prairie established pursuant to section 2914 and
            managed as a part of the National Forest System.
                (9) Person.--The term ``person'' has the meaning given such
            term by section 101(21) of CERCLA (42 U.S.C. 9601(21)).
                (10) Pollutant or contaminant.--The term ``pollutant or
            contaminant'' has the meaning given such term by section 101(33)
            of CERCLA (42 U.S.C. 9601(33)).
                (11) Release.--The term ``release'' has the meaning given
            such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)).
                (12) Response action.--The term ``response action'' has the
            meaning given the term ``response'' by section 101(25) of CERCLA
            (42 U.S.C. 9601(25)).

       Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin
                           National Tallgrass Prairie

    SEC. 2911. PRINCIPLES OF TRANSFER.

        (a) Land Use Plan.--The Congress ratifies in principle the proposals
    generally identified by the land use plan which was developed by the
    Joliet Arsenal Citizen Planning Commission and unanimously approved on
    May 30, 1995.
        (b) Transfer Without Reimbursement.--The area constituting the
    Midewin National Tallgrass Prairie shall be transferred, without
    reimbursement, to the Secretary of Agriculture.
        (c) Management of MNP.--Management by the Secretary of Agriculture
    of those portions of the Arsenal transferred to the Secretary under this
    title shall be in accordance with sections 2914 and 2915 regarding the
    Midewin National Tallgrass Prairie.
        (d) Security Measures.--The Secretary of the Army and the Secretary
    of Agriculture shall each provide and maintain physical and other
    security measures on such portion of the Arsenal as is under the
    administrative jurisdiction of such Secretary, unless the Secretary of
    the Army and the Secretary of Agriculture agree otherwise. Such security
    measures (which may include fences and natural barriers) shall include
    measures to prevent members of the public from gaining unauthorized
    access to such portions of the Arsenal as are under the administrative
    jurisdiction of such Secretary and that may endanger health or safety.
        (e) Cooperative Agreements.--The Secretary of the Army, the
    Secretary of Agriculture, and the Administrator are individually and
    collectively authorized to enter into cooperative agreements and
    memoranda of understanding among each other and with other affected
    Federal agencies, State and local governments, private organizations,
    and corporations to carry out the purposes for which the Midewin
    National Tallgrass Prairie is established.
        (f) Interim Activities of the Secretary of Agriculture.--Prior to
    transfer and subject to such reasonable terms and conditions as the
    Secretary of the Army may prescribe, the Secretary

    [[Page 110 STAT. 596]]

    of Agriculture may enter upon the Arsenal property for purposes related
    to planning, resource inventory, fish and wildlife habitat manipulation
    (which may include prescribed burning), and other such activities
    consistent with the purposes for which the Midewin National Tallgrass
    Prairie is established.
    SEC. 2912. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND
                              JURISDICTION OVER ARSENAL.

        (a) General Rule for Transfer of Jurisdiction.--
                (1) Transfer required subject to response actions.--Subject
            to subsection (d), not later than 270 days after the date of the
            enactment of this title, the Secretary of the Army shall
            transfer, without reimbursement, to the Secretary of Agriculture
            those portions of the Arsenal that--
                        (A) are identified on the map described in
                    subsection (e)(1) as appropriate for transfer under this
                    subsection to the Secretary of Agriculture; and
                        (B) the Secretary of the Army and the Administrator
                    concur in finding that all response actions have been
                    taken under CERCLA necessary to protect human health and
                    the environment with respect to any hazardous substance
                    remaining on the property.
                (2) <<NOTE: Memorandum.>>  Effect of less than complete
            transfer.--If the concurrence requirement in paragraph (1)(B)
            results in the transfer, within such 270-day period, of less
            than all of the Arsenal property covered by paragraph (1)(A),
            the Secretary of the Army and the Secretary of Agriculture shall
            enter into a memorandum of understanding providing for the
            performance by the Secretary of the Army of the additional
            response actions necessary to allow fulfillment of the
            concurrence requirement with respect to such Arsenal property.
            The memorandum of understanding shall be entered into within 60
            days of the end of such 270-day period and shall include a
            schedule for the completion of the additional response actions
            as soon as practicable. Subject to subsection (d), the Secretary
            of the Army shall transfer Arsenal property covered by this
            paragraph to the Secretary of Agriculture as soon as possible
            after the Secretary of the Army and the Administrator concur
            that all additional response actions have been taken under
            CERCLA necessary to protect human health and the environment
            with respect to any hazardous substance remaining on the
            property. The Secretary of the Army may make transfers under
            this paragraph on a parcel-by-parcel basis.
                (3) Rule of construction regarding concurrences.--For the
            purpose of reaching the concurrences required by this subsection
            and subsection (b), if a response action requires construction
            and installation of an approved remedial design, the response
            action shall be considered to have been taken when the
            construction and installation of the approved remedial design is
            completed and the remedy is demonstrated to the satisfaction of
            the Administrator to be operating properly and successfully.

        (b) Special Transfer Requirements for Certain Parcels.--Subject to
    subsection (d), the Secretary of the Army shall transfer, without
    reimbursement, to the Secretary of Agriculture the Arsenal property
    known as LAP Area Sites L2, L3, and L5 and Manufacturing Area Site 1.
    The transfer shall occur as soon as possible after

    [[Page 110 STAT. 597]]

    the Secretary of the Army and the Administrator concur that all response
    actions have been taken under CERCLA necessary to protect human health
    and the environment with respect to any hazardous substance remaining on
    the property. The Secretary of the Army may make transfers under this
    subsection on a parcel-by-parcel basis.
        (c) Documentation of Environmental Condition of Parcels; Assessment
    of Required Actions Under Other Environmental Laws.--
                (1) Documentation.--The Secretary of the Army and the
            Administrator shall provide to the Secretary of Agriculture all
            documentation and information that exists on the date the
            documentation and information is provided relating to the
            environmental condition of the Arsenal property proposed for
            transfer under subsection (a) or (b), including documentation
            that supports the finding that all response actions have been
            taken under CERCLA necessary to protect human health and the
            environment with respect to any hazardous substance remaining on
            the property.
                (2) Assessment.--The Secretary of the Army shall provide to
            the Secretary of Agriculture an assessment, based on information
            in existence at the time the assessment is provided, indicating
            what further action, if any, is required under any environmental
            law (other than CERCLA) on the Arsenal property proposed for
            transfer under subsection (a) or (b).
                (3) Time for submission of documentation and assessment.--
            The documentation and assessments required to be submitted to
            the Secretary of Agriculture under this subsection shall be
            submitted--
                        (A) in the case of the transfers required by
                    subsection (a), not later than 210 days after the date
                    of the enactment of this title; and
                        (B) in the case of the transfers required by
                    subsection (b), not later than 60 days before the
                    earliest date on which the property could be
                    transferred.
                (4) Submission of additional information.--The Secretary of
            the Army and the Administrator shall have a continuing
            obligation to provide to the Secretary of Agriculture any
            additional information regarding the environmental condition of
            property to be transferred under subsection (a) or (b) as such
            information becomes available.

        (d) Effect of Environmental Assessment.--
                (1) Authority of secretary of agriculture to decline
            immediate transfer.--If a parcel of Arsenal property to be
            transferred under subsection (a) or (b) includes property for
            which the assessment under subsection (c)(2) concludes further
            action is required under any environmental law (other than
            CERCLA), the Secretary of Agriculture may decline immediate
            transfer of the parcel. <<NOTE: Memorandum.>>  With respect to
            such a parcel, the Secretary of the Army and the Secretary of
            Agriculture shall enter into a memorandum of understanding
            providing for the performance by the Secretary of the Army of
            the required actions identified in the Army assessment. The
            memorandum of understanding shall be entered into within 90 days
            after the date on which the Secretary of Agriculture declines
            immediate transfer of the parcel and shall include a schedule
            for the completion of the required actions as soon as
            practicable.

    [[Page 110 STAT. 598]]

                (2) Eventual transfer.--In the case of a parcel of Arsenal
            property that the Secretary of Agriculture declines immediate
            transfer under paragraph (1), the Secretary may accept transfer
            of the parcel at any time after the original finding with
            respect to the parcel that all response actions have been taken
            under CERCLA necessary to protect
    human health and the environment with respect to any hazardous substance
    remaining on the property. The Secretary of Agriculture shall accept
    transfer of the parcel as soon as possible after the date on which all
    required further actions identified in the assessment have been taken
    and the terms of any memorandum of understanding have been satisfied.

        (e) Identification of Arsenal Property for Transfer.--
                (1) Map of proposed transfers.--The lands subject to
            transfer to the Secretary of Agriculture under subsections (a)
            and (b) and section 2916 are depicted on the map dated September
            22, 1995, which is on file and available for public inspection
            at the Office of the Chief of the Forest Service and the Office
            of the Assistant Secretary of the Army for Installations,
            Logistics and the Environment.
                (2) <<NOTE: Federal Register, publication.>>  Method of
            effecting transfer.--The Secretary of the Army shall effect the
            transfer of jurisdiction of Arsenal property under subsections
            (a) and (b) and section 2916 by publication of notices in the
            Federal Register. The Secretary of Agriculture shall give prior
            concurrence to the publication of such notices. Each notice
            published in the Federal Register shall refer to the parcel
            being transferred by legal description, references to maps or
            surveys, or other forms of description mutually acceptable to
            the Secretary of the Army and the Secretary of Agriculture. The
            Secretary of the Army shall provide, without reimbursement, to
            the Secretary of Agriculture copies of all surveys and land
            title information on lands transferred under this section or
            section 2916.

        (f) Surveys.--All costs of necessary surveys for the transfer of
    jurisdiction of Arsenal property from the Secretary of the Army to the
    Secretary of Agriculture shall be borne by the Secretary of Agriculture.

    SEC. 2913. RESPONSIBILITY AND LIABILITY.

        (a) Continued Liability of Secretary of the Army.--The transfers of
    Arsenal property under sections 2912 and 2916, and the requirements of
    such sections, shall not in any way affect the responsibilities and
    liabilities of the Secretary of the Army specified in this section. The
    Secretary of the Army shall retain any obligation or other liability at
    the Arsenal that the Secretary of the Army has under CERCLA or other
    environmental laws. Following transfer of a portion of the Arsenal under
    this subtitle, the Secretary of the Army shall be accorded any easement
    or access to the property that may be reasonably required by the
    Secretary to carry out the obligation or satisfy the liability.
        (b) Special Protections for Secretary of Agriculture.--The Secretary
    of Agriculture shall not be liable under any environmental law for
    matters which are related directly or indirectly to activities of the
    Secretary of the Army at the Arsenal or any party acting under the
    authority of the Secretary of the Army at the Arsenal, including any of
    the following:

    [[Page 110 STAT. 599]]

                (1) Costs or performance of response actions required under
            CERCLA at or related to the Arsenal.
                (2) Costs, penalties, fines, or performance of actions
            related to noncompliance with any environmental law at or
            related to the Arsenal or related to the presence, release, or
            threat of release of any hazardous substance, pollutant or
            contaminant, hazardous waste, or hazardous material of any kind
            at or related to the Arsenal, including contamination resulting
            from migration of a hazardous substance, pollutant or
            contaminant, hazardous waste, hazardous material, or petroleum
            products or their derivatives.
                (3) Costs or performance of actions necessary to remedy
            noncompliance or another problem specified in paragraph (2).

        (c) Liability of Other Persons.--Nothing in this title shall be
    construed to effect, modify, amend, repeal, alter, limit or otherwise
    change, directly or indirectly, the responsibilities or liabilities
    under any environmental law of any person (including the Secretary of
    Agriculture), except as provided in subsection (b) with respect to the
    Secretary of Agriculture.
        (d) Payment of Response Action Costs.--A Federal agency that had or
    has operations at the Arsenal resulting in the release or threatened
    release of a hazardous substance or pollutant or contaminant for which
    that agency would be liable under any environmental law, subject to the
    provisions of this subtitle, shall pay the costs of related response
    actions and shall pay the costs of related actions to remediate
    petroleum products or the derivatives of the products, including motor
    oil and aviation fuel.
        (e) Consultation.--
                (1) Responsibility of secretary of agriculture.--The
            Secretary of Agriculture shall consult with the Secretary of the
            Army with respect to the management by the Secretary of
            Agriculture of real property included in the Midewin National
            Tallgrass Prairie subject to any response action or other action
            at the Arsenal being carried out by or under the authority of
            the Secretary of the Army under any environmental law. The
            Secretary of Agriculture shall consult with the Secretary of the
            Army prior to undertaking any activities on the Midewin National
            Tallgrass Prairie that may disturb the property to ensure that
            such activities will not exacerbate contamination problems or
            interfere with performance by the Secretary of the Army of
            response actions at the property.
                (2) Responsibility of secretary of the army.--In carrying
            out response actions at the Arsenal, the Secretary of the Army
            shall consult with the Secretary of Agriculture to ensure that
            such actions are carried out in a manner consistent with the
            purposes for which the Midewin National Tallgrass Prairie is
            established, as specified in section 2914(c), and the other
            provisions of sections 2914 and 2915.
    SEC. 2914. <<NOTE: National Forest
                              System. Conservation. Environmental
                              protection.>>  ESTABLISHMENT AND
                              ADMINISTRATION OF MIDEWIN NATIONAL
                              TALLGRASS PRAIRIE.

        (a) Establishment.--On the effective date of the initial transfer of
    jurisdiction of portions of the Arsenal to the Secretary of Agriculture
    under section 2912(a), the Secretary of
    Agriculture shall establish the Midewin National Tallgrass Prairie. The
    MNP shall--
                (1) be administered by the Secretary of Agriculture; and

    [[Page 110 STAT. 600]]

                (2) consist of the real property so transferred and such
            other portions of the Arsenal subsequently transferred under
            section 2912(b) or 2916 or acquired under section 2914(d).

        (b) Administration.--
                (1) In general.--The Secretary of Agriculture shall manage
            the Midewin National Tallgrass Prairie as a part of the National
            Forest System in accordance with this title and the laws, rules,
            and regulations pertaining to the National Forest System, except
            that the Bankhead-Jones Farm Tenant Act of 1937 (7 U.S.C. 1010-
            1012) shall not apply to the MNP.
                (2) Initial management activities.--In order to expedite the
            administration and public use of the Midewin National Tallgrass
            Prairie, the Secretary of Agriculture may conduct management
            activities at the MNP to effectuate the purposes for which the
            MNP is established, as set forth in subsection (c), in advance
            of the development of a land and resource management plan for
            the MNP.
                (3) Land and resource management plan.--In developing a land
            and resource management plan for the Midewin National Tallgrass
            Prairie, the Secretary of Agriculture shall consult with the
            Illinois Department of Natural Resources and local governments
            adjacent to the MNP and provide an opportunity for public
            comment. Any parcel transferred to the Secretary of Agriculture
            under this title after the development of a land and resource
            management plan for the MNP may be managed in accordance with
            such plan without need for an amendment to the plan.

        (c) Purposes of the Midewin National Tallgrass Prairie.--The Midewin
    National Tallgrass Prairie is established to be managed for National
    Forest System purposes, including the following:
                (1) To manage the land and water resources of the MNP in a
            manner that will conserve and enhance the native populations and
            habitats of fish, wildlife, and plants.
                (2) To provide opportunities for scientific, environmental,
            and land use education and research.
                (3) To allow the continuation of agricultural uses of lands
            within the MNP consistent with section 2915(b).
                (4) To provide a variety of recreation opportunities that
            are not inconsistent with the preceding purposes.

        (d) Other Land Acquisition for MNP.--
                (1) Availability of land acquisition funds.--Notwithstanding
            section 7 of the Land and Water Conservation Fund Act of 1965
            (16 U.S.C. 460l-9), the Secretary of Agriculture may use monies
            appropriated from the Land and Water Conservation Fund
            established under section 2 of such Act (16 U.S.C. 460l-5) for
            the acquisition of lands and interests in land for inclusion in
            the Midewin National Tallgrass Prairie.
                (2) Acquisition of lands.--The Secretary of Agriculture may
            acquire lands or interests therein for inclusion in the Midewin
            National Tallgrass Prairie by donation, purchase, or exchange,
            except that the acquisition of private lands for inclusion in
            the MNP shall be on a willing seller basis only.

        (e) Cooperation With States, Local Governments and Other Entities.--
    In the management of the Midewin National Tallgrass Prairie, the
    Secretary of Agriculture is authorized and encouraged to cooperate with
    appropriate Federal, State and local governmental agencies, private
    organizations and corporations.

    [[Page 110 STAT. 601]]

    Such cooperation may include cooperative agreements as well as the
    exercise of the existing authorities of the Secretary under the
    Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et seq.) and
    the Forest and Rangeland Renewable Resources Research Act of 1978 (16
    U.S.C. 1641 et seq.). The objects of such cooperation may include public
    education, land and resource protection, and cooperative management
    among government, corporate, and private landowners in a manner which
    furthers the purposes for which the Midewin National Tallgrass Prairie
    is established.
    SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN NATIONAL
                              TALLGRASS PRAIRIE.

        (a) Prohibition Against the Construction of New Through Roads.--No
    new construction of any highway, public road, or any part of the
    interstate system, whether Federal, State, or local, shall be permitted
    through or across any portion of the Midewin National Tallgrass Prairie.
    Nothing in this title shall preclude construction and maintenance of
    roads for use within the MNP, the granting of authorizations for utility
    rights-of-way under applicable Federal law, or such access as is
    necessary. Nothing in this title shall preclude necessary access by the
    Secretary of the Army for purposes of restoration and cleanup as
    provided in this title.
        (b) Agricultural Leases and Special Use Authorizations.--Within the
    Midewin National Tallgrass Prairie, use of the lands for agricultural
    purposes shall be permitted subject to the following terms and
    conditions:
                (1) If at the time of transfer of jurisdiction under section
            2912 or 2916 there exists any lease issued by the Secretary of
            the Army or the Secretary of Defense for agricultural purposes
            upon the parcel transferred, the Secretary of Agriculture shall
            issue a special use authorization to supersede the lease. The
            terms of the special use authorization shall be identical in
            substance to the lease that the special use authorization is
            superseding, including the expiration date and any payments owed
            the United States. On issuance of the special use authorization,
            the lease shall become void.
                (2) In addition to the authority provided in paragraph (1),
            the Secretary of Agriculture may issue special use
            authorizations to persons for use of the Midewin National
            Tallgrass Prairie for agricultural purposes. Special use
            authorizations issued pursuant to this paragraph shall include
            terms and conditions as the Secretary of Agriculture may deem
            appropriate.
                (3) No agricultural special use authorization shall be
            issued for agricultural purposes which has a term extending
            beyond the date 20 years from the date of the enactment of this
            title, except that nothing in this title shall preclude the
            Secretary of Agriculture from issuing agricultural special use
            authorizations or grazing permits which are effective after
            twenty years from the date of enactment of this title for
            purposes primarily related to erosion control, provision for
            food and habitat for fish and wildlife, or other resource
            management activities consistent with the purposes of the
            Midewin National Tallgrass Prairie.

        (c) Treatment of Rental Fees.--Monies received under a special use
    authorization issued under subsection (b) shall be subject

    [[Page 110 STAT. 602]]

    to distribution to the State of Illinois and affected counties pursuant
    to the Act of May 23, 1908, and section 13 of the Act of March 1, 1911
    (16 U.S.C. 500). <<NOTE: Nomenclature.>>  All monies not distributed
    pursuant to such Acts shall be covered into the Treasury and shall
    constitute a special fund (to be known as the ``MNP Rental Fee
    Account''). The Secretary of Agriculture may use amounts in the fund,
    until expended and without fiscal year limitation, to cover the cost to
    the United States of prairie improvement work at the Midewin National
    Tallgrass Prairie. Any amounts in the fund that the Secretary of
    Agriculture determines to be in excess of the cost of doing such work
    shall be transferred, upon such determination, to miscellaneous
    receipts, Forest Service Fund, as a National Forest receipt of the
    fiscal year in which the transfer is made.

        (d) User Fees.--The Secretary of Agriculture is authorized to charge
    reasonable fees for the admission, occupancy, and use of the Midewin
    National Tallgrass Prairie and may prescribe a fee schedule providing
    for reduced or a waiver of fees for persons or groups engaged in
    authorized activities including those providing volunteer services,
    research, or education. The Secretary shall permit admission, occupancy,
    and use at no additional charge for persons possessing a valid Golden
    Eagle Passport or Golden Age Passport.
        (e) Salvage of Improvements.--The Secretary of Agriculture may sell
    for salvage value any facilities and improvements which have been
    transferred to the Secretary pursuant to this title.
        (f) <<NOTE: Nomenclature.>>  Treatment of User Fees and Salvage
    Receipts.--Monies collected pursuant to subsections (d) and (e) shall be
    covered into the Treasury and constitute a special fund (to be known as
    the ``Midewin National Tallgrass Prairie Restoration Fund''). The
    Secretary of Agriculture may use amounts in the fund, in such amounts as
    are provided in advance in appropriation Acts, for restoration and
    administration of the Midewin National Tallgrass Prairie, including
    construction of a visitor and education center, restoration of
    ecosystems, construction of recreational facilities (such as trails),
    construction of administrative offices, and operation and maintenance of
    the MNP. The Secretary of Agriculture shall include the MNP among the
    areas under the jurisdiction of the Secretary selected for inclusion in
    any cost recovery or any pilot program of the Secretary for the
    collection, use, and distribution of user fees.
    SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PARCELS
                              INTENDED FOR MNP.

        (a) Description of Parcels.--The following areas of the Arsenal may
    be transferred under this section:
                (1) Study Area 2, explosive burning ground.
                (2) Study Area 3, flashing ground.
                (3) Study Area 4, lead azide area.
                (4) Study Area 10, toluene tank farms.
                (5) Study Area 11, landfill.
                (6) Study Area 12, sellite manufacturing area.
                (7) Study Area 14, former pond area.
                (8) Study Area 15, sewage treatment plan.
                (9) Study Area L1, load assemble packing area, group 61.
                (10) Study Area L4, landfill area.
                (11) Study Area L7, group 1.
                (12) Study Area L8, group 2.

    [[Page 110 STAT. 603]]

                (13) Study Area L9, group 3.
                (14) Study Area L10, group 3A.
                (15) Study Area L14, group 4.
                (16) Study Area L15, group 5.
                (17) Study Area L18, group 8.
                (18) Study Area L19, group 9.
                (19) Study Area L33, PVC area.
                (20) Any other lands proposed for transfer as depicted on
            the map described in section 2912(e)(1) and not otherwise
            specifically identified for transfer under this subtitle.

        (b) Information Regarding Environmental Condition of Parcels;
    Assessment of Required Actions Under Other Environmental Laws.--
                (1) Information.--Not later than 180 days after the date on
            which the Secretary of the Army and the Administrator concur in
            finding that, with respect to a parcel of Arsenal property
            described in subsection (a), all response actions have been
            taken under CERCLA necessary to protect human health and the
            environment with respect to any hazardous substance remaining on
            the parcel, the Secretary of the Army and the Administrator
            shall provide to the Secretary of Agriculture all information
            that exists on such date regarding the environmental condition
            of the parcel and the implementation of any response action,
            including information regarding the effectiveness of the
            response action.
                (2) Assessment.--At the same time as information is provided
            under paragraph (1) with regard to a parcel of Arsenal property
            described in subsection (a), the Secretary of the Army shall
            provide to the Secretary of Agriculture an assessment, based on
            information in existence at the time the assessment is provided,
            indicating what further action, if any, is required under any
            environmental law (other than CERCLA) with respect to the
            parcel.
                (3) Submission of additional information.--The Secretary of
            the Army and the Administrator shall have a continuing
            obligation to provide to the Secretary of Agriculture any
            additional information regarding the environmental condition of
            a parcel of the Arsenal property described in subsection (a) as
            such information becomes available.

        (c) Offer of Transfer.--Not later than 180 days after the date on
    which information is provided under subsection (b)(1) with regard to a
    parcel of the Arsenal property described in subsection (a), the
    Secretary of the Army shall offer the Secretary of Agriculture the
    option of accepting a transfer of the parcel, without reimbursement, to
    be added to the Midewin National Tallgrass Prairie. The transfer shall
    be subject to the terms and conditions of this subtitle, including the
    liability provisions contained in section 2913. The Secretary of
    Agriculture has the option to accept or decline the offered transfer.
    The transfer of property under this section may be made on a parcel-by-
    parcel basis.
        (d) Effect of Environmental Assessment.--
                (1) Authority of secretary of agriculture to decline
            transfer.--If a parcel of Arsenal property described in
            subsection (a) includes property for which the assessment under
            subsection (b)(2) concludes further action is required under any
            other environmental law, the Secretary of Agriculture may
            decline any transfer of the parcel. <<NOTE: Memorandum.>>
            Alternatively, the Secretary

    [[Page 110 STAT. 604]]

            of Agriculture may decline immediate transfer of the parcel and
            enter into a memorandum of understanding with the Secretary of
            the Army providing for the performance by the Secretary of the
            Army of the required actions identified in the Army assessment
            with respect to the parcel. The memorandum of understanding
            shall be entered into within 90 days, or such later date as the
            Secretaries may establish, after the date on which the Secretary
            of Agriculture declines immediate transfer of the parcel and
            shall include a schedule for the completion of the required
            actions as soon as practicable.
                (2) Eventual transfer.--The Secretary of Agriculture may
            accept or decline at any time for any reason the transfer of a
            parcel covered by this section. However,
    if the Secretary of Agriculture and the Secretary of the Army enter into
    a memorandum of understanding under paragraph (1) providing for transfer
    of the parcel, the Secretary of Agriculture shall accept transfer of the
    parcel as soon as possible after the date on which all required further
    actions identified in the assessment have been taken and the
    requirements of the memorandum of understanding have been satisfied.

        (e) Rule of Construction Regarding Concurrences.--For the purpose of
    the reaching the concurrence required by subsection (b)(1), if a
    response action requires construction and installation of an approved
    remedial design, the response action shall be considered to have been
    taken when the construction and installation of the approved remedial
    design is completed and the remedy is demonstrated to the satisfaction
    of the Administrator to be operating properly and successfully.
        (f) Inclusions and Exceptions.--
                (1) Inclusions.--The parcels of Arsenal property described
            in subsection (a) shall include all associated inventoried
            buildings and structures as identified in the Joliet Army
            Ammunition Plant Plantwide Building and Structures Report and
            the contaminate study sites for both the manufacturing and load
            assembly and packing sites of the Arsenal as shown in the Dames
            and Moore Final Report, Phase 2 Remedial Investigation
            Manufacturing (MFG) Area Joliet Army Ammunition Plant, Joliet,
            Illinois (May 30, 1993, Contract No. DAAA15-90-D-0015 task order
            No. 6 prepared for the United States Army Environmental Center).
                (2) Exception.--The parcels described in subsection (a)
            shall not include the property at the Arsenal designated for
            transfer or conveyance under subtitle B.

      Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition
                                      Plant

    SEC. 2921. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR A
                              NATIONAL CEMETERY.

        (a) Conveyance Authorized.--Subject to section 2931, the Secretary
    of the Army may transfer, without reimbursement, to the Secretary of
    Veterans Affairs the parcel of real property at the Arsenal described in
    subsection (b) for use as a national cemetery operated as part of the
    National Cemetery System of the Department of Veterans Affairs under
    chapter 24 of title 38, United States Code.

    [[Page 110 STAT. 605]]

        (b) Description of Property.--The real property authorized to be
    transferred under subsection (a) is a parcel of real property at the
    Arsenal consisting of approximately 982 acres, the approximate legal
    description of which includes part of sections 30 and 31, Jackson
    Township, Township 34 North, Range 10 East, and part of sections 25 and
    36, Channahon Township, Township 34 North, Range 10 East, Will County,
    Illinois, as depicted in the Arsenal land use concept.
        (c) Security Measures.--The Secretary of Veterans Affairs shall
    provide and maintain physical and other security measures on the real
    property transferred under subsection (a). Such security measures (which
    may include fences and natural barriers) shall include measures to
    prevent members of the public from gaining unauthorized access to the
    portion of the Arsenal that is under the administrative jurisdiction of
    the Secretary of Veterans Affairs and that may endanger health or
    safety.
        (d) Surveys.--All costs of necessary surveys for the transfer of
    jurisdiction of Arsenal properties from the Secretary of the Army to the
    Secretary of Veterans Affairs shall be borne solely by the Secretary of
    Veterans Affairs.
    SEC. 2922. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR A
                              COUNTY LANDFILL.

        (a) Conveyance Authorized.--Subject to section 2931, the Secretary
    of the Army may convey, without compensation,
    to Will County, Illinois, all right, title, and interest of the United
    States in and to the parcel of real property at the Arsenal described in
    subsection (b), which shall be operated as a landfill by the County.

        (b) Description of Property.--The real property authorized to be
    conveyed under subsection (a) is a parcel of real property at the
    Arsenal consisting of approximately 455 acres, the approximate legal
    description of which includes part of sections 8, 9, 16, and 17,
    Florence Township, Township 33 North, Range 10 East, Will County,
    Illinois, as depicted in the Arsenal land use concept.
        (c) Condition on Conveyance.--The conveyance shall be subject to the
    condition that the Department of the Army, the Department of Veterans
    Affairs, and the Department of Agriculture (or their agents or assigns)
    may use the landfill established on the real property conveyed under
    subsection (a) for the disposal of construction debris, refuse, and
    other materials related to any restoration and cleanup of Arsenal
    property. Such use shall be subject to applicable environmental laws and
    at no cost to the Federal Government.
        (d) Reversionary Interest.--If, at the end of the five-year period
    beginning on the date of the conveyance under subsection (a), the
    Secretary of Agriculture determines that the conveyed property is not
    opened for operation as a landfill, then, at the option of the Secretary
    of Agriculture, all right, title, and interest in and to the property,
    including improvements thereon, shall revert to the United States. Upon
    any such reversion, the property shall be included in the Midewin
    National Tallgrass Prairie. In the event the United States exercises its
    option to cause the property to revert, the United States shall have the
    right of immediate entry onto the property.

    [[Page 110 STAT. 606]]

        (e) Information Regarding Environmental Conditions.--At the request
    of the Secretary of Agriculture, Will County, the Secretary of the Army,
    and the Administrator shall provide to the Secretary of Agriculture all
    information in their possession at the time of the request regarding the
    environmental condition of the real property to be conveyed under this
    section. The liability and responsibility of any person under any
    environmental law shall remain unchanged with respect to the landfill,
    except as provided in this title, including section 2913.
        (f) Surveys.--All costs of necessary surveys for the conveyance of
    real property under this section shall be borne by Will County,
    Illinois.
        (g) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    conveyance under this section as the Secretary of the Army considers
    appropriate to protect the interests of the United States.
    SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL FOR
                              INDUSTRIAL PARKS.

        (a) Conveyance Authorized.--Subject to section 2931, the Secretary
    of the Army may convey to the State of Illinois, all right, title, and
    interest of the United States in and to the parcels of real property at
    the Arsenal described in subsection (b), which shall be used as
    industrial parks to replace all or a part of the economic activity lost
    at the Arsenal.
        (b) Description of Property.--The real property at the Arsenal
    authorized to be transferred under subsection (a) consists of the
    following parcels:
                (1) A parcel of approximately 1,900 acres, the approximate
            legal description of which includes part of section 30, Jackson
            Township, Township 34 North, Range 10 East, and sections or
            parts of sections 24, 25, 26, 35, and 36, Township 34 North,
            Range 9 East, in Channahon Township, an area of 9.77 acres
            around the Des Plaines River Pump Station located in the
            southeast quarter of section 15, Township 34 North, Range 9 East
            of the Third Principal Meridian, in Channahon Township, and an
            area of 511 feet by 596 feet around the Kankakee River Pump
            Station in the Northwest Quarter of section 5, Township 33
            North, Range 9 East, east of the Third Principal Meridian in
            Wilmington Township, containing 6.99 acres, located along the
            easterly side of the Kankakee Cut-Off in Will County, Illinois,
            as depicted in the Arsenal land use concept, and the connecting
            piping to the northern industrial site, as described by the
            United States Army Report of Availability, dated 13 December
            1993.
                (2) A parcel of approximately 1,100 acres, the approximate
            legal description of which includes part of sections 16, 17, and
            18 in Florence Township, Township 33 North, Range 10 East, Will
            County, Illinois, as depicted in the Arsenal land use concept.

        (c) Consideration.--
                (1) Delay in payment of consideration.--After the end of the
            20-year period beginning on the date on which the conveyance
            under subsection (a) is completed, the State of Illinois shall
            pay to the United States an amount equal to

    [[Page 110 STAT. 607]]

            fair market value of the conveyed property as of the time of the
            conveyance.
                (2) Effect of reconveyance by state.--If the State of
            Illinois reconveys all or any part of the conveyed property
            during such 20-year period, the State 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 State.
                (3) Determination of fair market value.--The Secretary of
            the Army shall determine fair market value in accordance with
            Federal appraisal standards and procedures.
                (4) Treatment of leases.--The Secretary of the Army may
            treat a lease of the property within such 20-year period as a
            reconveyance if the Secretary determines that the lease is being
            used to avoid application of paragraph (2).
                (5) Deposit of proceeds.--The Secretary of the Army shall
            deposit any proceeds received under this subsection 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)).

        (d) Conditions of Conveyance.--
                (1) Redevelopment authority.--The conveyance under
            subsection (a) shall be subject to the condition that the
            Governor of the State of Illinois, in consultation with the
            Mayor of the Village of Elwood, Illinois, and the Mayor of the
            City of Wilmington, Illinois, establish a redevelopment
            authority to be responsible for overseeing the development of
            the industrial parks on the conveyed property.
                (2) Time for establishment.--To satisfy the condition
            specified in paragraph (1), the redevelopment authority shall be
            established within one year after the date of the enactment of
            this title.

        (e) Surveys.--All costs of necessary surveys for the conveyance of
    real property under this section shall be borne by the State of
    Illinois.
        (f) Additional Terms and Conditions.--The Secretary of the Army 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.

                      Subtitle C--Miscellaneous Provisions

    SEC. 2931. DEGREE OF ENVIRONMENTAL CLEANUP.

        (a) In General.--Nothing in this title shall be construed to
    restrict or lessen the degree of cleanup at the Arsenal required to be
    carried out under provisions of any environmental law.
        (b) Response Action.--The establishment of the Midewin National
    Tallgrass Prairie under subtitle A and the additional real property
    transfers or conveyances authorized under subtitle B shall not restrict
    or lessen in any way any response action or degree of cleanup under
    CERCLA or other environmental law, or any action required under any
    environmental law to remediate petroleum products or their derivatives
    (including motor oil and aviation fuel), required to be carried out
    under the authority of the Secretary of the Army at the Arsenal and
    surrounding areas.

    [[Page 110 STAT. 608]]

        (c) Environmental Quality of Property.--Any contract for sale, deed,
    or other transfer of real property under subtitle B shall be carried out
    in compliance with all applicable provisions of section 120(h) of CERCLA
    and other environmental laws.
    SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL CLEANUP.

        (a) Retention of Certain Property.--Unless and until the Arsenal
    property described in this subsection is actually transferred or
    conveyed under this title or other applicable law, the Secretary of the
    Army may retain jurisdiction, authority, and control over real property
    at the Arsenal to be used for--
                (1) water treatment;
                (2) the treatment, storage, or disposal of any hazardous
            substance, pollutant or contaminant, hazardous material, or
            petroleum products or their derivatives;
                (3) other purposes related to any response action at the
            Arsenal; and
                (4) other actions required at the Arsenal under any
            environmental law to remediate contamination or conditions of
            noncompliance with any environmental law.

        (b) Conditions.--The Secretary of the Army shall consult with the
    Secretary of Agriculture regarding the identification and management of
    the real property retained under this section and ensure that activities
    carried out on that property are consistent, to the extent practicable,
    with the purposes for which the Midewin National Tallgrass Prairie is
    established, as specified in section 2914(c), and with the other
    provisions of sections 2914 and 2915.
        (c) Priority of Response Actions.--In the case of any conflict
    between management of the property by the Secretary of Agriculture and
    any response action required under CERCLA, or any other action required
    under any other environmental law, including actions to remediate
    petroleum products or their derivatives, the response action or other
    action shall take priority.

     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.

        (a) Stockpile Stewardship.--Subject to subsection (d), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for stockpile stewardship in carrying out weapons
    activities necessary for national security programs in the amount of
    $1,567,175,000, to be allocated as follows:
                (1) For core stockpile stewardship, $1,159,708,000, to be
            allocated as follows:

    [[Page 110 STAT. 609]]

                        (A) For operation and maintenance, $1,078,403,000.
                        (B) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $81,305,000, to be allocated as
                    follows:
                              Project 96-D-102, stockpile stewardship
                          facilities revitalization, Phase VI, various
                          locations, $2,520,000.
                              Project 96-D-103, ATLAS, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $8,400,000.
                              Project 96-D-104, processing and environmental
                          technology laboratory (PETL), Sandia National
                          Laboratories, Albuquerque, New Mexico, $1,800,000.
                              Project 96-D-105, contained firing facility
                          addition, Lawrence Livermore National Laboratory,
                          Livermore, California, $6,600,000.
                              Project 95-D-102, Chemical and Metallurgy
                          Research Building upgrades project, Los Alamos
                          National Laboratory, Los Alamos, New Mexico,
                          $9,940,000.
                              Project 94-D-102, nuclear weapons research,
                          development, and testing facilities
                          revitalization, Phase V, various locations,
                          $12,200,000.
                              Project 93-D-102, Nevada support facility,
                          North Las Vegas, Nevada, $15,650,000.
                              Project 90-D-102, nuclear weapons research,
                          development, and testing facilities
                          revitalization, Phase III, various locations,
                          $6,200,000.
                              Project 88-D-106, nuclear weapons research,
                          development, and testing facilities
                          revitalization, Phase II, various locations,
                          $17,995,000.
                (2) For inertial fusion, $240,667,000, to be allocated as
            follows:
                        (A) For operation and maintenance, $203,267,000.
                        (B) For the following plant project (including
                    maintenance, restoration, planning, construction,
                    acquisition, and modification of facilities, and land
                    acquisition related thereto), $37,400,000:
                              Project 96-D-111, national ignition facility,
                          location to be determined, $37,400,000.
                (3) For technology transfer and education, $160,000,000.
                (4) For Marshall Islands, $6,800,000.

        (b) Stockpile Management.--Subject to subsection (d), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for stockpile management in carrying out weapons
    activities necessary for national security programs in the amount of
    $2,025,083,000, to be allocated as follows:
                (1) For operation and maintenance, $1,911,458,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $113,625,000, to be allocated
            as follows:
                        Project 96-D-122, sewage treatment quality upgrade
                    (STQU), Pantex Plant, Amarillo, Texas, $600,000.

    [[Page 110 STAT. 610]]

                        Project 96-D-123, retrofit heating, ventilation, and
                    air conditioning and chillers for ozone protection, Y-12
                    Plant, Oak Ridge, Tennessee, $3,100,000.
                        Project 96-D-125, Washington measurements operations
                    facility, Andrews Air Force Base, Camp Springs,
                    Maryland, $900,000.
                        Project 96-D-126, tritium loading line
                    modifications, Savannah River Site, South Carolina,
                    $12,200,000.
                        Project 95-D-122, sanitary sewer upgrade, Y-12
                    Plant, Oak Ridge, Tennessee, $6,300,000.
                        Project 94-D-124, hydrogen fluoride supply system,
                    Y-12 Plant, Oak Ridge, Tennessee, $8,700,000.
                        Project 94-D-125, upgrade life safety, Kansas City
                    Plant, Kansas City, Missouri, $5,500,000.
                        Project 94-D-127, emergency notification system,
                    Pantex Plant, Amarillo, Texas, $2,000,000.
                        Project 94-D-128, environmental safety and health
                    analytical laboratory, Pantex Plant, Amarillo, Texas,
                    $4,000,000.
                        Project 93-D-122, life safety upgrades, Y-12 Plant,
                    Oak Ridge, Tennessee, $7,200,000.
                        Project 93-D-123, complex-21, various locations,
                    $41,065,000.
                        Project 88-D-122, facilities capability assurance
                    program, various locations, $8,660,000.
                        Project 88-D-123, security enhancement, Pantex
                    Plant, Amarillo, Texas, $13,400,000.

        (c) Program Direction.--Subject to subsection (d), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1996 for program direction in carrying out weapons activities
    necessary for national security programs in the amount of $115,000,000.
        (d) Adjustments.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in subsections (a) through (c) reduced by the sum of--
                (1) $37,200,000, for savings resulting from procurement
            reform; and
                (2) $209,744,000, for use of prior year balances.
    SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) Environmental Restoration.--Subject to subsection (h), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for environmental restoration in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $1,635,973,000.
        (b) Waste Management.--Subject to subsection (h), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1996 for waste management in carrying out environmental restoration
    and waste management activities necessary for national security programs
    in the amount of $2,470,598,000, to be allocated as follows:
                (1) For operation and maintenance, $2,295,994,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,

    [[Page 110 STAT. 611]]

            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $174,604,000, to be allocated
            as follows:
                        Project 96-D-406, spent nuclear fuels canister
                    storage and stabilization facility, Richland,
                    Washington, $42,000,000.
                        Project 96-D-407, mixed waste/low-level waste
                    treatment projects, Rocky Flats Plant, Golden, Colorado,
                    $2,900,000.
                        Project 96-D-408, waste management upgrades, various
                    locations, $5,615,000.
                        Project 95-D-402, install permanent electrical
                    service, Waste Isolation Pilot Plant, Carlsbad, New
                    Mexico, $4,314,000.
                        Project 95-D-405, industrial landfill V and
                    construction/demolition landfill VII, Phase III, Y-12
                    Plant, Oak Ridge, Tennessee, $4,600,000.
                        Project 95-D-406, road 5-01 reconstruction, area 5,
                    Nevada Test Site, Nevada, $1,023,000.
                        Project 95-D-407, 219-S secondary containment
                    upgrade, Richland Washington, $1,000,000.
                        Project 94-D-400, high explosive wastewater
                    treatment system, Los Alamos National Laboratory, Los
                    Alamos, New Mexico, $4,445,000.
                        Project 94-D-402, liquid waste treatment system,
                    Nevada Test Site, Nevada, $282,000.
                        Project 94-D-404, Melton Valley storage tank
                    capacity increase, Oak Ridge National Laboratory, Oak
                    Ridge, Tennessee, $11,000,000.
                        Project 94-D-407, initial tank retrieval systems,
                    Richland, Washington, $12,000,000.
                        Project 94-D-411, solid waste operation complex,
                    Richland, Washington, $6,606,000.
                        Project 93-D-178, building 374 liquid waste
                    treatment facility, Rocky Flats Plant, Golden, Colorado,
                    $3,900,000.
                        Project 93-D-181, radioactive liquid waste line
                    replacement, Richland, Washington, $5,000,000.
                        Project 93-D-182, replacement of cross-site transfer
                    system, Richland, Washington, $19,795,000.
                        Project 93-D-187, high-level waste removal from
                    filled waste tanks, Savannah River Site, South Carolina,
                    $19,700,000.
                        Project 92-D-171, mixed waste receiving and storage
                    facility, Los Alamos National Laboratory, Los Alamos,
                    New Mexico, $1,105,000.
                        Project 92-D-188, waste management environmental,
                    safety and health (ES&H) and compliance activities,
                    various locations, $1,100,000.
                        Project 90-D-172, aging waste transfer lines,
                    Richland, Washington, $2,000,000.
                        Project 90-D-177, RWMC transuranic (TRU) waste
                    characterization and storage facility, Idaho National
                    Engineering Laboratory, Idaho, $1,428,000.
                        Project 90-D-178, TSA retrieval enclosure, Idaho
                    National Engineering Laboratory, Idaho, $2,606,000.
                        Project 89-D-173, tank farm ventilation upgrade,
                    Richland, Washington, $800,000.

    [[Page 110 STAT. 612]]

                        Project 89-D-174, replacement high-level waste
                    evaporator, Savannah River Site, Aiken, South Carolina,
                    $11,500,000.
                        Project 86-D-103, decontamination and waste
                    treatment facility, Lawrence Livermore National
                    Laboratory, Livermore, California, $8,885,000.
                        Project 83-D-148, nonradioactive hazardous waste
                    management, Savannah River Site, Aiken, South Carolina,
                    $1,000,000.

        (c) Technology Development.--Subject to subsection (h), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for technology development in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $440,510,000.
        (d) Transportation Management.--Subject to subsection (h), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for transportation management in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $13,158,000.

        (e) Nuclear Materials and Facilities Stabilization.--Subject to
    subsection (h), funds are hereby authorized to be appropriated to the
    Department of Energy for fiscal year 1996 for nuclear materials and
    facilities stabilization in carrying out environmental restoration and
    waste management activities necessary for national security programs in
    the amount of $1,561,854,000 to be allocated as follows:
                (1) For operation and maintenance, $1,447,108,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $114,746,000, to be allocated
            as follows:
                        Project 96-D-457, thermal treatment system, Richland
                    Washington, $1,000,000.
                        Project 96-D-458, site drainage control, Mound
                    Plant, Miamisburg, Ohio, $885,000.
                        Project 96-D-461, electrical distribution upgrade,
                    Idaho National Engineering Laboratory, Idaho,
                    $1,539,000.
                        Project 96-D-464, electrical and utility systems
                    upgrade, Idaho Chemical Processing Plant, Idaho National
                    Engineering Laboratory, Idaho, $4,952,000.
                        Project 96-D-468, residue elimination project, Rocky
                    Flats Plant, Golden, Colorado, $33,100,000.
                        Project 96-D-471, chlorofluorocarbon heating,
                    ventilation, and air conditioning and chiller retrofit,
                    Savannah River Site, Aiken, South Carolina, $1,500,000.
                        Project 95-D-155, upgrade site road infrastructure,
                    Savannah River Site, South Carolina, $2,900,000.
                        Project 95-D-156, radio trunking system, Savannah
                    River Site, South Carolina, $6,000,000.
                        Project 95-D-454, 324 facility compliance/
                    renovation, Richland, Washington, $3,500,000.
                        Project 95-D-456, security facilities upgrade, Idaho
                    Chemical Processing Plant, Idaho National Engineering
                    Laboratory, Idaho, $8,382,000.

    [[Page 110 STAT. 613]]

                        Project 94-D-122, underground storage tanks, Rocky
                    Flats Plant, Golden, Colorado, $5,000,000.
                        Project 94-D-401, emergency response facility, Idaho
                    National Engineering Laboratory, Idaho, $5,074,000.
                        Project 94-D-412, 300 area process sewer piping
                    upgrade, Richland, Washington, $1,000,000.
                        Project 94-D-415, medical facilities, Idaho National
                    Engineering Laboratory, Idaho, $3,601,000.
                        Project 94-D-451, infrastructure replacement, Rocky
                    Flats Plant, Golden, Colorado, $2,940,000.
                        Project 93-D-147, domestic water system upgrade,
                    Phase I and II, Savannah River Site, Aiken, South
                    Carolina, $7,130,000.
                        Project 92-D-123, plant fire/security alarm systems
                    replacement, Rocky Flats Plant, Golden, Colorado,
                    $9,560,000.
                        Project 92-D-125, master safeguards and security
                    agreement/materials surveillance task force security
                    upgrades, Rocky Flats Plant, Golden, Colorado,
                    $7,000,000.
                        Project 92-D-181, fire and life safety improvements,
                    Idaho National Engineering Laboratory, Idaho,
                    $6,883,000.
                        Project 91-D-127, criticality alarm and plant
                    annunciation utility replacement, Rocky Flats Plant,
                    Golden, Colorado, $2,800,000.

        (f) Compliance and Program Coordination.--Subject to subsection (h),
    funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1996 for compliance and program coordination in
    carrying out environmental restoration and waste management activities
    necessary for national security programs in the amount of $46,251,000,
    to be allocated as follows:
                (1) For operation and maintenance, $31,251,000.
                (2) For the following plant project (including maintenance,
            restoration, planning, construction, acquisition, modification
            of facilities, and the continuation of a project authorized in
            prior years, and land acquisition related thereto):
                        Project 95-E-600, hazardous materials training
                    center, Richland, Washington, $15,000,000.

        (g) Analysis, Education, and Risk Management.--Subject to subsection
    (h), funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1996 for analysis, education, and risk management
    in carrying out environmental restoration and waste management
    activities necessary for national security programs in the amount of
    $78,522,000.
        (h) Adjustments.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts specified in
    subsections (a) through (g) reduced by the sum of--
                (1) $652,334,000, for use of prior year balances; and
                (2) $37,000,000, for Savannah River Pension Refund.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        (a) Other Defense Activities.--Subject to subsection (b), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1996 for other defense activities in carrying out programs
    necessary for national security in the amount of $1,351,975,600, to be
    allocated as follows:
                (1) For verification and control technology, $428,205,600,
            to be allocated as follows:

    [[Page 110 STAT. 614]]

                        (A) For nonproliferation and verification research
                    and development, $224,905,000.
                        (B) For arms control, $160,964,600.
                        (C) For intelligence, $42,336,000.
                (2) For nuclear safeguards and security, $83,395,000.
                (3) For security investigations, $20,000,000.
                (4) For security evaluations, $14,707,000.
                (5) For the Office of Nuclear Safety, $17,679,000.
                (6) For worker and community transition assistance,
            $82,500,000.
                (7) For fissile materials disposition, $70,000,000.
                (8) For emergency management, $23,321,000.
                (9) For naval reactors development, $682,168,000, to be
            allocated as follows:
                        (A) For operation and infrastructure, $652,568,000.
                        (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), $29,600,000, to be allocated as
                    follows:
                              Project GPN-101, general plant projects,
                          various locations, $6,600,000.
                              Project 95-D-200, laboratory systems and hot
                          cell upgrades, various locations, $11,300,000.
                              Project 95-D-201, advanced test reactor
                          radioactive waste system upgrades, Idaho National
                          Engineering Laboratory, Idaho, $4,800,000.
                              Project 93-D-200, engineering services
                          facilities, Knolls Atomic Power Laboratory,
                          Niskayuna, New York, $3,900,000.
                              Project 90-N-102, expended core facility dry
                          cell project, Naval Reactors Facility, Idaho,
                          $3,000,000.

        (b) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section is the amount authorized to be appropriated in
    subsection (a) reduced by $70,000,000, for use of prior year balances.

    SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1996 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 $248,400,000.

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--Until the Secretary of Energy submits to the
    congressional defense committees the report referred to in subsection
    (b) and a period of 30 days has elapsed after the date on which such
    committees receive the report, the Secretary may not use amounts
    appropriated pursuant to this title for any program--
                (1) in amounts that exceed, in a fiscal year--
                        (A) 110 percent of the amount authorized for that
                    program by this title; or

    [[Page 110 STAT. 615]]

                        (B) $1,000,000 more than the amount authorized for
                    that program by this title; or
                (2) which has not been presented to, or requested of,
            Congress.

        (b) Report.--(1) The report referred to in subsection (a) is a
    report containing a full and complete statement of the action proposed
    to be taken and the facts and circumstances relied upon in support of
    such proposed action.
        (2) In the computation of the 30-day period under subsection (a),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (c) Limitations.--(1) In no event may the total amount of funds
    obligated pursuant to this title exceed the total amount authorized to
    be appropriated by this title.
        (2) Funds appropriated pursuant to this title may not be used for an
    item for which Congress has specifically denied funds.

    SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

        (a) In General.--The Secretary of Energy may carry out any
    construction project under the general plant projects authorized by this
    title if the total estimated cost of the construction project does not
    exceed $2,000,000.
        (b) Report to Congress.--If, at any time during the construction of
    any general plant project authorized by this title, the estimated cost
    of the project is revised because of unforeseen cost variations and the
    revised cost of the project exceeds $2,000,000, the Secretary shall
    immediately furnish a complete report to the congressional defense
    committees explaining the reasons for the cost variation.

    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) <<NOTE: Reports.>>  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.

    [[Page 110 STAT. 616]]

    SEC. 3124. FUND TRANSFER AUTHORITY.

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

        (c) Notice to Congress.--The Secretary of Energy shall promptly
    notify the Committee on Armed Services of the Senate and the Committee
    on National Security of the House of Representatives of any transfer of
    funds to or from authorizations under this title.
    SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

        (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2)
    and except as provided in paragraph (3), before submitting to Congress a
    request for funds for a construction project that is in support of a
    national security program of the Department of Energy, the Secretary of
    Energy shall complete a conceptual design for that project.
        (2) If the estimated cost of completing a conceptual design for a
    construction project exceeds $3,000,000, the Secretary shall submit to
    Congress a request for funds for the conceptual design before submitting
    a request for funds for the construction project.
        (3) The requirement in paragraph (1) does not apply to a request for
    funds--
                (A) for a construction project the total estimated cost of
            which is less than $2,000,000; or
                (B) for emergency planning, design, and construction
            activities under section 3126.

        (b) Authority for Construction Design.--(1) Within the amounts
    authorized by this title, the Secretary of Energy may carry out
    construction design (including architectural and engineering services)
    in connection with any proposed construction project if the total
    estimated cost for such design does not exceed $600,000.

    [[Page 110 STAT. 617]]

        (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) <<NOTE: Reports.>>  Limitation.--The Secretary may not exercise
    the authority under subsection (a) in the case of any construction
    project until the Secretary has submitted to the congressional defense
    committees a report on the activities that the Secretary intends to
    carry out under this section and the circumstances making such
    activities necessary.

        (c) Specific Authority.--The requirement of section 3125(b)(2) does
    not apply to emergency planning, design, and construction activities
    conducted under this section.
    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF
                              THE DEPARTMENT OF ENERGY.

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

    SEC. 3128. AVAILABILITY OF FUNDS.

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    SEC. 3131. <<NOTE: 22 USC 5952 note.>>  AUTHORITY TO CONDUCT
                              PROGRAM RELATING TO FISSILE MATERIALS.

        (a) Authority.--The Secretary of Energy may conduct programs
    designed to improve the protection, control, and accountability of
    fissile materials in Russia.
        (b) Semi-Annual Reports on Obligation of Funds.--(1) Not later than
    30 days after the date of the enactment of this Act, and thereafter not
    later than April 1 and October 1 of each year, the Secretary of Energy
    shall submit to Congress a report on each obligation during the
    preceding
    six months of funds appropriated for a program described in subsection
    (a).

        (2) Each such report shall specify--
                (A) the activities and forms of assistance for which the
            Secretary of Energy has obligated funds;
                (B) the amount of the obligation;

    [[Page 110 STAT. 618]]

                (C) the activities and forms of assistance for which the
            Secretary anticipates obligating funds during the six months
            immediately following the report, and the amount of each such
            anticipated obligation; and
                (D) the projected involvement (if any) of any department or
            agency of the United States (in addition to the Department of
            Energy) and of the private sector of the United States in the
            activities and forms of assistance for which the Secretary of
            Energy has obligated funds referred to in subparagraph (A).

    SEC. 3132. NATIONAL IGNITION FACILITY.

        None of the funds authorized to be appropriated pursuant to this
    title for construction of the National Ignition Facility may be
    obligated until--
                (1) the Secretary of Energy determines that the construction
            of the National Ignition Facility will not impede the nuclear
            nonproliferation objectives of the United States; and
                (2) <<NOTE: Notification.>>  the Secretary of Energy
            notifies the congressional defense committees of that
            determination.

    SEC. 3133. <<NOTE: 42 USC 2121 note.>>  TRITIUM PRODUCTION PROGRAM.

        (a) Establishment of Program.--The Secretary of Energy shall
    establish a tritium production program that is capable of meeting the
    tritium requirements of the United States for nuclear weapons. In
    carrying out the tritium production program, the Secretary shall--
                (1) complete the tritium supply and recycling environmental
            impact statement in preparation by the Secretary as of the date
            of the enactment of this Act; and
                (2) assess alternative means for tritium production,
            including production through--
                        (A) types of new and existing reactors, including
                    multipurpose reactors (such as advanced light water
                    reactors and gas turbine gas-cooled reactors) capable of
                    meeting both the tritium production requirements and the
                    plutonium disposition requirements of the United States
                    for nuclear weapons;
                        (B) an accelerator; and
                        (C) multipurpose reactor projects carried out by the
                    private sector and the Government.

        (b) Funding.--Of funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101, not more than $50,000,000
    shall be available for the tritium production program established
    pursuant to subsection (a).
        (c) <<NOTE: South Carolina.>>  Location of Tritium Production
    Facility.--The Secretary shall locate any new tritium production
    facility of the Department of Energy at the Savannah River Site, South
    Carolina.

        (d) Cost-Benefit Analysis.--(1) The Secretary shall include in the
    statements referred to in paragraph (2) a comparison of the costs and
    benefits of carrying out two projects for the separate performance of
    the tritium production mission of the Department and the plutonium
    disposition mission of the Department with the costs and benefits of
    carrying out one multipurpose project for the performance of both such
    missions.
        (2) The statements referred to in paragraph (1) are--
                (A) the environmental impact statement referred to in
            subsection (a)(1);

    [[Page 110 STAT. 619]]

                (B) the plutonium disposition environmental impact statement
            in preparation by the Secretary as of the date of the enactment
            of this Act; and
                (C) assessments related to the environmental impact
            statements referred to in subparagraphs (A) and (B).

        (e) Report.--Not later than 45 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 Committee on National Security of the
    House of Representatives a report on the tritium production program
    established pursuant to subsection (a). The report shall include a
    specification of--
                (1) the planned expenditures of the Department during fiscal
            year 1996 for any of the alternative means for tritium
            production assessed under subsection (a)(2);
                (2) the amount of funds required to be expended by the
            Department, and the program milestones (including feasibility
            demonstrations) required to be met, during fiscal years 1997
            through 2001 to ensure tritium production beginning not later
            than 2005 that is adequate to meet the tritium requirements of
            the United States for nuclear weapons; and
                (3) the amount of such funds to be expended and such program
            milestones to be met during such fiscal years to ensure such
            tritium production beginning not later than 2011.

        (f) Tritium Targets.--Of the funds made available pursuant to
    subsection (b), not more than $5,000,000 shall be available for the
    Idaho National Engineering Laboratory for the test and development of
    nuclear reactor tritium targets for the types of reactors assessed under
    subsection (a)(2)(A).

    SEC. 3134. PAYMENT OF PENALTIES.

        The Secretary of Energy may pay to the Hazardous Substance Superfund
    established under section 9507 of the Internal Revenue Code of 1986 (26
    U.S.C. 9507), from funds appropriated to the Department of Energy for
    environmental restoration and waste management activities pursuant to
    section 3102, stipulated civil penalties in the amount of $350,000
    assessed under the Comprehensive Environmental Response, Compensation,
    and Liability Act of 1980 (42 U.S.C. 9601 et seq.) against the Rocky
    Flats Site, Colorado.

    SEC. 3135. FISSILE MATERIALS DISPOSITION.

        (a) In General.--Of the funds authorized to be appropriated to the
    Department of Energy for fiscal year 1996 pursuant to section 3103,
    $70,000,000 shall be available only for purposes of completing the
    evaluation of, and commencing implementation of, the interim- and long-
    term storage and disposition (including storage and disposition through
    the use of advanced light water reactors and gas turbine gas-cooled
    reactors) of fissile materials (including plutonium, highly enriched
    uranium, and other fissile materials) that are excess to the national
    security needs of the United States.
        (b) Availability of Funds for Multipurpose Reactors.--Of funds made
    available pursuant to subsection (a), sufficient funds shall be made
    available for the complete consideration of multipurpose reactors for
    the disposition of fissile materials in the programmatic environmental
    impact statement of the Department.
        (c) Limitation.--Of funds made available pursuant to subsection (a),
    $10,000,000 shall be available only for a plutonium resource assessment.

    [[Page 110 STAT. 620]]

    SEC. 3136. TRITIUM RECYCLING.

        (a) <<NOTE: South Carolina.>>  In General.--Except as provided in
    subsection (b), the following activities shall be carried out at the
    Savannah River Site, South Carolina:
                (1) All tritium recycling for weapons, including tritium
            refitting.
                (2) All activities regarding tritium formerly carried out at
            the Mound Plant, Ohio.

        (b) Exception.--The following activities may be carried out at the
    Los Alamos National Laboratory, New Mexico:
                (1) Research on tritium.
                (2) Work on tritium in support of the defense inertial
            confinement fusion program.
                (3) Provision of technical assistance to the Savannah River
            Site regarding the weapons surveillance program.
    SEC. 3137. <<NOTE: 42 USC 2121 note.>>  MANUFACTURING
                              INFRASTRUCTURE FOR REFABRICATION AND
                              CERTIFICATION OF NUCLEAR WEAPONS
                              STOCKPILE.

        (a) Manufacturing Program.--The Secretary of Energy shall carry out
    a program for purposes of establishing within the Government a
    manufacturing infrastructure that has the capabilities of meeting the
    following objectives as specified in the Nuclear Posture Review:
                (1) To provide a stockpile surveillance engineering base.
                (2) To refabricate and certify weapon components and types
            in the enduring nuclear weapons stockpile, as necessary.
                (3) To fabricate and certify new nuclear warheads, as
            necessary.
                (4) To support nuclear weapons.
                (5) To supply sufficient tritium in support of nuclear
            weapons to ensure an upload hedge in the event circumstances
            require.

        (b) Required Capabilities.--The manufacturing infrastructure
    established under the program under subsection (a) shall include the
    following capabilities (modernized to attain the objectives referred to
    in that subsection):
                (1) The weapons assembly capabilities of the Pantex Plant.
                (2) The weapon secondary fabrication capabilities of the Y-
            12 Plant, Oak Ridge, Tennessee.
                (3) The tritium production, recycling, and other weapons-
            related capabilities of the Savannah River Site.
                (4) The non-nuclear component capabilities of the Kansas
            City Plant.

        (c) Nuclear Posture Review.--For purposes of subsection (a), the
    term ``Nuclear Posture Review'' means the Department of Defense Nuclear
    Posture Review as contained in the Report of the Secretary of Defense to
    the President and the Congress dated February 19, 1995, or subsequent
    such reports.
        (d) Funding.--Of the funds authorized to be appropriated under
    section 3101(b), $143,000,000 shall be available for carrying out the
    program required under this section, of which--
                (1) $35,000,000 shall be available for activities at the
            Pantex Plant;
                (2) $30,000,000 shall be available for activities at the Y-
            12 Plant, Oak Ridge, Tennessee;
                (3) $35,000,000 shall be available for activities at the
            Savannah River Site; and

    [[Page 110 STAT. 621]]

                (4) $43,000,000 shall be available for activities at the
            Kansas City Plant.

        (e) Plan and Report.--The Secretary shall develop a plan for the
    implementation of this section. Not later than March 1, 1996, the
    Secretary shall submit to Congress a report on the obligations the
    Secretary has incurred, and plans to incur, during fiscal year 1996 for
    the program referred to in subsection (a).

    SEC. 3138. HYDRONUCLEAR EXPERIMENTS.

        Of the funds authorized to be appropriated to the Department of
    Energy pursuant to section 3101, $30,000,000 shall be available to
    prepare for the commencement of a program of hydronuclear experiments at
    the nuclear weapons design laboratories at the Nevada Test Site, Nevada.
    The purpose of the program shall be to maintain confidence in the
    reliability and safety of the nuclear weapons stockpile.
    SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR TESTS.

        Nothing in this Act may be construed to authorize the conduct of
    hydronuclear tests or to amend or repeal the requirements of section 507
    of the Energy and Water Development Appropriations Act, 1993 (Public Law
    102-377; 106 Stat. 1343; 42 U.S.C. 2121 note).
    SEC. 3140. <<NOTE: 42 USC 2121 note.>>  FELLOWSHIP PROGRAM FOR
                              DEVELOPMENT OF SKILLS CRITICAL TO THE
                              DEPARTMENT OF ENERGY NUCLEAR WEAPONS
                              COMPLEX.

        (a) In General.--The Secretary of Energy shall conduct a fellowship
    program for the development of skills critical to the ongoing mission of
    the Department of Energy nuclear weapons complex. Under the fellowship
    program, the Secretary shall--
                (1) provide educational assistance and research assistance
            to eligible individuals to facilitate the development by such
            individuals of skills critical to maintaining the ongoing
            mission of the Department of Energy nuclear weapons complex;
                (2) employ eligible individuals at the facilities described
            in subsection (c) in order to facilitate the development of such
            skills by these individuals; or
                (3) provide eligible individuals with the assistance and the
            employment.

        (b) Eligible Individuals.--Individuals eligible for participation in
    the fellowship program are the following:
                (1) Students pursuing graduate degrees in fields of science
            or engineering that are related to nuclear weapons engineering
            or to the science and technology base of the Department of
            Energy.
                (2) Individuals engaged in postdoctoral studies in such
            fields.

        (c) Covered Facilities.--The Secretary shall carry out the
    fellowship program at or in connection with the following facilities:
                (1) The Kansas City Plant, Kansas City, Missouri.
                (2) The Pantex Plant, Amarillo, Texas.
                (3) The Y-12 Plant, Oak Ridge, Tennessee.
                (4) The Savannah River Site, Aiken, South Carolina.

        (d) Administration.--The Secretary shall carry out the fellowship
    program at a facility referred to in subsection (c) through the
    stockpile manager of the facility.

    [[Page 110 STAT. 622]]

        (e) Allocation of Funds.--The Secretary shall, in consultation with
    the Assistant Secretary of Energy for Defense Programs, allocate funds
    available for the fellowship program under subsection (f) among the
    facilities referred to in subsection (c). The Secretary shall make the
    allocation after evaluating an assessment by the weapons program
    director of each such facility of the personnel and critical skills
    necessary at the facility for carrying out the ongoing mission of the
    facility.
        (f) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy for fiscal year 1996 under section 3101(b),
    $10,000,000 may be used for the purpose of carrying out the fellowship
    program under this section.
    SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND
                              DEVELOPMENT PURPOSES.

        Funds appropriated or otherwise made available to the Department of
    Energy for fiscal year 1996 under section 3101 may be obligated and
    expended for activities under the Department of Energy Laboratory
    Directed Research and Development Program or under Department of Energy
    technology transfer programs only if such activities support the
    national security mission of the Department.
    SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE
                              AND SPENT NUCLEAR FUEL RODS.

        (a) Processing of Spent Nuclear Fuel Rods.--Of the amounts
    appropriated pursuant to section 3102, there shall be available to the
    Secretary of Energy to respond effectively to new requirements for
    managing spent nuclear fuel--
                (1) not more than $30,000,000, for the Savannah River Site
            for the development and implementation of a program for the
            processing, reprocessing, separation, reduction, isolation, and
            interim storage of high-level nuclear waste associated with
            aluminum clad spent fuel rods and foreign spent fuel rods; and
                (2) not more than $15,000,000, for the Idaho National
            Engineering Laboratory for the development and implementation of
            a program for the treatment, preparation, and conditioning of
            high-level nuclear waste and spent nuclear fuel (including naval
            spent nuclear fuel), nonaluminum clad fuel rods, and foreign
            fuel rods for interim storage and final disposition.

        (b) Implementation Plan.--Not later than April 30, 1996, the
    Secretary shall submit to Congress a five-year plan for the
    implementation of the programs referred to in subsection (a). The plan
    shall include--
                (1) an assessment of the facilities required to be
            constructed or upgraded to carry out the processing, separation,
            reduction, isolation and interim storage of high-level nuclear
            waste;
                (2) a description of the technologies, including
            stabilization technologies, that are required to be developed
            for the efficient conduct of the programs;
                (3) a projection of the dates upon which activities under
            the programs are sufficiently completed to provide for the
            transfers of such waste to permanent repositories; and
                (4) a projection of the total cost to complete the programs.

        (c) Electrometallurgical Waste Treatment Technologies.--Of the
    amount appropriated pursuant to section

    [[Page 110 STAT. 623]]

    3102(c), not more than $25,000,000 shall be available for development of
    electrometallurgical waste treatment technologies at the Argonne
    National Laboratory.
        (d) Use of Funds for Settlement Agreement.--Funds made available
    pursuant to subsection (a)(2) for the Idaho National Engineering
    Laboratory shall be considered to be funds made available in partial
    fulfillment of the terms and obligations set forth in the settlement
    agreement entered into by the United States with the State of Idaho in
    the actions captioned Public Service Co. of Colorado v. Batt, Civil No.
    91-0035-S-EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, in
    the United States District Court for the District of Idaho and the
    consent order of the United States District Court for the District of
    Idaho, dated October 17, 1995, that effectuates the settlement
    agreement.
    SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS FACILITIES.

        Of the funds authorized to be appropriated to the Department of
    Energy under section 3102, $10,000,000 shall be available to carry out
    activities authorized under section 3131 of the National Defense
    Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190;
    105 Stat. 1571; 42 U.S.C. 7274d), relating to worker protection at
    nuclear weapons facilities.
    SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUC-
                              TIVITY INITIATIVE.

        Of the funds authorized to be appropriated to the Department of
    Energy under section 3103, $3,000,000 shall be available for the
    Declassification Productivity Initiative of the Department of Energy.

                            Subtitle D--Other Matters

    SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES.

        (a) <<NOTE: President.>>  Report.--Not later than May 1, 1996, the
    President shall submit to the congressional defense committees a report
    on the feasibility of, the cost of, and the policy, legal, and other
    issues associated with purchasing tritium from various foreign suppliers
    in order to ensure an adequate supply of tritium in the United States
    for nuclear weapons.

        (b) Form of Report.--The report shall be submitted in unclassified
    form, but may contain a classified appendix.
    SEC. 3152. <<NOTE: Reports.>>  STUDY ON NUCLEAR TEST READINESS
                              POSTURES.

        Not later than February 15, 1996, the Secretary of Energy shall
    submit to Congress a report on the costs, programmatic issues, and other
    issues associated with sustaining the capability of the Department of
    Energy--
                (1) to conduct an underground nuclear test 6 months after
            the date on which the President determines that such a test is
            necessary to ensure the national security of the United States;
                (2) to conduct such a test 18 months after such date; and
                (3) to conduct such a test 36 months after such date.

    [[Page 110 STAT. 624]]

    SEC. 3153. <<NOTE: 42 USC 2121 note.>>  MASTER PLAN FOR THE
                              CERTIFICATION, STEWARDSHIP, AND
                              MANAGEMENT OF WARHEADS IN THE NUCLEAR
                              WEAPONS STOCKPILE.

        (a) <<NOTE: President.>>  Master Plan Requirement.--Not later than
    March 15, 1996, the President shall submit to Congress a master plan for
    maintaining the nuclear weapons stockpile. The President shall submit to
    Congress an update of the master plan not later than March 15 of each
    year thereafter.

        (b) Plan Elements.--The master plan and each update of the master
    plan shall set forth the following:
                (1) The numbers of weapons (including active and inactive
            weapons) for each type of weapon in the nuclear weapons
            stockpile.
                (2) The expected design lifetime of each weapon type, the
            current age of each weapon type, and any plans (including the
            analytical basis for such plans) for lifetime extensions of a
            weapon type.
                (3) An estimate of the lifetime of the nuclear and
            nonnuclear components of the weapons (including active weapons
            and inactive weapons) in the nuclear weapons stockpile, and any
            plans (including the analytical basis for such plans) for
            lifetime extensions of such components.
                (4) A schedule of the modifications, if any, required for
            each weapon type (including active and inactive weapons) in the
            nuclear weapons stockpile and the cost of such modifications.
                (5) The process to be used in recertifying the safety,
            reliability, and performance of each weapon type (including
            active weapons and inactive weapons) in the nuclear weapons
            stockpile.
                (6) The manufacturing infrastructure required to maintain
            the nuclear weapons stockpile stewardship and management
            programs, including a detailed project plan that demonstrates
            the manner by which the Government will develop by 2002 the
            capability to refabricate and certify warheads in the nuclear
            weapons stockpile and to design, fabricate, and certify new
            warheads.

        (c) Form of Plan.--The master plan and each update of the master
    plan shall be submitted in unclassified form, but may contain a
    classified appendix.
    SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF DEPARTMENT
                              OF ENERGY FACILITIES UNLESS PROTECTION
                              OF RESTRICTED DATA IS CERTIFIED.

        (a) <<NOTE: 42 USC 2164 note.>>  Prohibition on Inspections.--(1)
    The Secretary of Energy may not allow an inspection of a nuclear weapons
    facility by the International Atomic Energy Agency until the Secretary
    certifies to Congress that no restricted data will be revealed during
    such inspection.

        (2) For purposes of paragraph (1), the term ``restricted data'' has
    the meaning provided by section 11 y. of the Atomic Energy Act of 1954
    (42 U.S.C. 2014(y)).
        (b) Extension of Notice-and-Wait Requirement Regarding Proposed
    Cooperation Agreements.--Section 3155(b) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    3092) <<NOTE: 42 USC 2153 note.>>  is amended by striking out ``December
    31, 1995'' and inserting in lieu thereof ``October 1, 1996''.

    [[Page 110 STAT. 625]]

    SEC. 3155. <<NOTE: 42 USC 2162 note.>>  REVIEW OF CERTAIN
                              DOCUMENTS BEFORE DECLASSIFICATION AND
                              RELEASE.

        (a) In General.--The Secretary of Energy shall ensure that, before a
    document of the Department of Energy that contains national security
    information is released or declassified, such document is reviewed to
    determine whether it contains restricted data.
        (b) Limitation on Declassification.--The Secretary may not implement
    the automatic declassification provisions of Executive Order 12958 if
    the Secretary determines that such implementation could result in the
    automatic declassification and release of documents containing
    restricted data.
        (c) Restricted Data Defined.--In this section, the term ``restricted
    data'' has the meaning provided by section 11 y. of the Atomic Energy
    Act of 1954 (42 U.S.C. 2014(y)).
    SEC. 3156. <<NOTE: 42 USC 7274k note.>>  ACCELERATED SCHEDULE FOR
                              ENVIRONMENTAL RESTORATION AND WASTE
                              MANAGEMENT ACTIVITIES.

        (a) Accelerated Cleanup.--The Secretary of Energy shall accelerate
    the schedule for environmental restoration and waste management
    activities and projects for a site at a Department of Energy defense
    nuclear facility if the Secretary determines that such an accelerated
    schedule will achieve meaningful, long-term cost savings to the Federal
    Government and could substantially accelerate the release of land for
    local reuse.
        (b) Consideration of Factors.--In making a determination under
    subsection (a), the Secretary shall consider the following:
                (1) The cost savings achievable by the Federal Government.
                (2) The amount of time for completion of environmental
            restoration and waste management activities and projects at the
            site that can be reduced from the time specified for completion
            of such activities and projects in the baseline environmental
            management report required to be submitted for 1995 under
            section 3153 of the National Defense Authorization Act for
            Fiscal Year 1994 (42 U.S.C. 7274k).
                (3) The potential for reuse of the site.
                (4) The risks that the site poses to local health and
            safety.
                (5) The proximity of the site to populated areas.

        (c) Report.--Not later than May 1, 1996, the Secretary shall submit
    to Congress a report on each site for which the Secretary has
    accelerated the schedule for environmental restoration and waste
    management activities and projects under subsection (a). The report
    shall include an explanation of the basis for the determination for that
    site required by such subsection, including an explanation of the
    consideration of the factors described in subsection (b).
        (d) Savings Provision.--Nothing in this section may be construed to
    affect a specific statutory requirement for a specific environmental
    restoration or waste management activity or project or to modify or
    otherwise affect applicable statutory or regulatory environmental
    restoration and waste management requirements, including substantive
    standards intended to protect public health and the environment.
    SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRONMENTAL
                              RESTORATION REQUIREMENTS.

        It is the sense of Congress that--

    [[Page 110 STAT. 626]]

                (1) an individual acting within the scope of that
            individual's employment with a Federal agency should not be
            personally subject to civil or criminal sanctions (to the extent
            such sanctions are provided for by law) as a result of the
            failure to comply with an environmental cleanup requirement
            under the Solid Waste Disposal Act or the Comprehensive
            Environmental Response, Compensation, and Liability Act or an
            analogous requirement under a comparable Federal, State, or
            local law, in any circumstance under which such failure to
            comply is due to an insufficiency of funds appropriated to carry
            out such requirement;
                (2) Federal and State enforcement authorities should refrain
            from an enforcement action in a circumstance described in
            paragraph (1); and
                (3) if funds appropriated for a fiscal year after fiscal
            year 1995 are insufficient to carry out any such environmental
            cleanup requirement, Congress should elicit the views of Federal
            agencies, affected States, and the public, and consider
            appropriate legislative action to address personal criminal
            liability in a circumstance described in paragraph (1) and any
            related issues pertaining to potential liability of a Federal
            agency.
    SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY RESPONSE
                              PROGRAM.

        The Office of Military Applications under the Assistant Secretary of
    Energy for Defense Programs shall retain responsibility for the Defense
    Programs Emergency Response Program within the Department of Energy.
    SEC. 3159. <<NOTE: 42 USC 7271b note.>>  REQUIREMENTS FOR
                              DEPARTMENT OF ENERGY WEAPONS ACTIVITIES
                              BUDGETS FOR FISCAL YEARS AFTER FISCAL
                              YEAR 1996.

        (a) In General.--The weapons activities budget of the Department of
    Energy shall be developed in accordance with the Nuclear Posture Review,
    the Post Nuclear Posture Review Stockpile Memorandum currently under
    development, and the programmatic and technical requirements associated
    with the review and memorandum.
        (b) Required Detail.--The Secretary of Energy shall include in the
    materials that the Secretary submits to Congress in support of the
    budget for a fiscal year submitted by the President pursuant to section
    1105 of title 31, United States Code, a long-term program plan, and a
    near-term program plan, for the certification and stewardship of the
    nuclear weapons stockpile.
        (c) Definition.--In this section, the term ``Nuclear Posture
    Review'' means the Department of Defense Nuclear Posture Review as
    contained in the report of the Secretary of Defense to the President and
    the Congress dated February 19, 1995, or in subsequent such reports.

    SEC. 3160. REPORT ON HYDRONUCLEAR TESTING.

        (a) Report.--The Secretary of Energy shall direct the joint
    preparation by the Directors of the Lawrence Livermore National
    Laboratory and the Los Alamos National Laboratory of a report on the
    advantages and disadvantages with respect to the safety and reliability
    of the nuclear weapons stockpile of permitting alternative limits to the
    current limit on the explosive yield of

    [[Page 110 STAT. 627]]

    hydronuclear and other explosive tests. The report shall address the
    following explosive yield limits:
                (1) 4 pounds (TNT equivalent).
                (2) 400 pounds (TNT equivalent).
                (3) 4,000 pounds (TNT equivalent).
                (4) 40,000 pounds (TNT equivalent).
                (5) 400 tons (TNT equivalent).

        (b) Funding.--The Secretary shall make available funds appropriated
    to the Department of Energy pursuant to section 3101 for preparation of
    the report required under subsection (a).
    SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF 1955 TO
                              LOS ALAMOS, NEW MEXICO.

        (a) Date of Transfer of Utilities.--Section 72 of the Atomic Energy
    Community Act of 1955 (42 U.S.C. 2372) is amended by striking out ``not
    later than five years after the date it is included within this Act''
    and inserting in lieu thereof ``not later than June 30, 1998''.
        (b) Date of Transfer of Municipal Installations.--Section 83 of such
    Act (42 U.S.C. 2383) is amended by striking out ``not later than five
    years after the date it is included within this Act'' and inserting in
    lieu thereof ``not later than June 30, 1998''.
        (c) Recommendation for Further Assistance Payments.--Section 91d. of
    such Act (42 U.S.C. 2391) is amended--
                (1) by striking out ``, and the Los Alamos School Board;''
            and all that follows through ``county of Los Alamos, New
            Mexico'' and inserting in lieu thereof ``; or not later than
            June 30, 1996, in the case of the Los Alamos School Board and
            the county of Los Alamos, New Mexico''; and
                (2) <<NOTE: Reports.>>  by adding at the end the following
            new sentence: ``If the recommendation under the preceding
            sentence regarding the Los Alamos School Board or the county of
            Los Alamos, New Mexico, indicates a need for further assistance
            for the school board or the county, as the case may be, after
            June 30, 1997, the recommendation shall include a report and
            plan describing the actions required to eliminate the need for
            further assistance for the school board or the county, including
            a proposal for legislative action to carry out the plan.''.

        (d) Contract To Make Payments.--Section 94 of such Act (42 U.S.C.
    2394) is amended--
                (1) by striking out ``June 30, 1996'' each place it appears
            in the proviso in the first sentence and inserting in lieu
            thereof ``June 30, 1997''; and
                (2) by striking out ``July 1, 1996'' in the second sentence
            and inserting in lieu thereof ``July 1, 1997''.
    SEC. 3162. SENSE OF CONGRESS REGARDING SHIPMENTS OF SPENT NUCLEAR
                              FUEL.

        (a) Findings.--Congress makes the following findings:
                (1) The United States has entered into a settlement
            agreement with the State of Idaho in the actions captioned
            Public Service Co. of Colorado v. Batt, Civil No. 91-0035-S-EJL,
            and United States v. Batt, Civil No. 91-0054-S-EJL, in the
            United States District Court for the District of Idaho,
            regarding shipment of naval spent nuclear fuel to Idaho,
            examination and storage of such fuel in Idaho, and other
            matters.
                (2) Under this court enforceable agreement--
                        (A) the State of Idaho has agreed--

    [[Page 110 STAT. 628]]

                              (i) to accept 575 shipments of naval spent
                          nuclear fuel from the Navy into Idaho between
                          October 17, 1995 and 2035;
                              (ii) to accept certain shipments of spent
                          nuclear fuel from the Department of Energy into
                          Idaho between October 17, 1995 and 2035; and
                              (iii) to allow the Navy and the Department of
                          Energy, on an interim basis, to store the spent
                          nuclear fuel in Idaho over the next 40 years; and
                        (B) the United States has made commitments--
                              (i) to remove all spent nuclear fuel (except
                          certain quantities for testing) from Idaho by
                          2035; and
                              (ii) to facilitate the cleanup and
                          stabilization of radioactive waste at the Idaho
                          National Engineering Laboratory.
                (3) The settlement agreement allows the Department of Energy
            and the Department of the Navy to meet responsibilities that are
            important to the national security interests of the United
            States.
                (4) Authorizations and appropriations of funds will be
            necessary in order to provide for fulfillment of the terms and
            obligations set forth in the settlement agreement.

        (b) Sense of Congress.--(1) Congress recognizes the need to
    implement the terms, conditions, rights, and obligations contained in
    the settlement agreement referred to in subsection (a)(1) and the
    consent order of the United States District Court for the District of
    Idaho, dated October 17, 1995, that effectuates the settlement agreement
    in accordance with those terms, conditions, rights, and obligations.
        (2) It is the sense of Congress that funds requested by the
    President to carry out the settlement agreement and such consent order
    should be appropriated for that purpose.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 1996,
    $17,000,000 for the operation of the Defense Nuclear Facilities Safety
    Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
    et seq.).

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

             Subtitle A--Authorization of Disposals and Use of Funds

    SEC. 3301. DEFINITIONS.

        For purposes of this subtitle:
                (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).

    [[Page 110 STAT. 629]]

                (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 1996, the
    National Defense Stockpile Manager may obligate up to $77,100,000 of the
    funds in the National Defense Stockpile Transaction Fund for the
    authorized uses of such funds under section 9(b)(2) of the Strategic and
    Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection (a)
    if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date Congress receives the
    notification.
        (c) Limitations.--The authorities provided by this section shall be
    subject to such limitations as may be provided in appropriations Acts.
    SEC. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND CHROMIUM
                              FERRO AND MANGANESE METAL ELECTROLYTIC.

        (a) <<NOTE: President.>>  Domestic Upgrading.--In offering to enter
    into agreements pursuant to any provision of law for the disposal from
    the National Defense Stockpile of chromite and manganese ores or
    chromium ferro and manganese metal electrolytic, the President shall
    give a right of first refusal on all such offers to domestic ferroalloy
    upgraders.

        (b) Domestic Ferroalloy Upgrader Defined.--For purposes of this
    section, the term ``domestic ferroalloy upgrader'' means a company or
    other business entity that, as determined by the President--
                (1) is engaged in operations to upgrade chromite or
            manganese ores of metallurgical grade or chromium ferro and
            manganese metal electrolytic; and
                (2) conducts a significant level of its research,
            development, engineering, and upgrading operations in the United
            States.

    SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

        (a) Disposal of Lower Grade Material First.--The President may not
    dispose of high carbon manganese ferro in the National Defense Stockpile
    that meets the National Defense Stockpile classification of Grade One,
    Specification 30(a), as revised on May 22, 1992, until completing the
    disposal of all manganese ferro in the National Defense Stockpile that
    does not meet such classification. The President may not reclassify
    manganese ferro in the National Defense Stockpile after the date of the
    enactment of this Act.
        (b) Requirement for Remelting by Domestic Ferroalloy Producers.--
    Manganese ferro in the National Defense Stockpile that does not meet the
    classification specified in subsection (a) may be sold only for
    remelting by a domestic ferroalloy producer

    [[Page 110 STAT. 630]]

    unless the President determines that a domestic ferroalloy producer is
    not available to acquire the material.
        (c) Domestic Ferroalloy Producer Defined.--For purposes of this
    section, the term ``domestic ferroalloy producer'' means a company or
    other business entity that, as determined by the President--
                (1) is engaged in operations to upgrade manganese ores of
            metallurgical grade or manganese ferro; and
                (2) conducts a significant level of its research,
            development, engineering, and upgrading operations in the United
            States.
    SEC. 3305. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK UPGRADE
                              PROGRAM.

        During each of the fiscal years 1996 through 2003, the Secretary of
    Defense shall transfer from stocks of the National Defense Stockpile up
    to 250 short tons of titanium sponge to the Secretary of the Army for
    use in the weight reduction portion of the main battle tank upgrade
    program. Transfers under this section shall be without charge to the
    Army, except that the Secretary of the Army shall pay all transportation
    and related costs incurred in connection with the transfer.

                         Subtitle B--Programmatic Change

    SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO
                              STOCKPILE FOR DISPOSAL.

        (a) Transfer and Disposal.--Section 4 of the Strategic and Critical
    Materials Stock Piling Act (50 U.S.C. 98c) is amended by adding at the
    end the following new subsection:
        ``(c)(1) The Secretary of Energy, in consultation with the Secretary
    of Defense, shall transfer to the stockpile for disposal in accordance
    with this Act uncontaminated materials that are in the Department of
    Energy inventory of materials for the production of defense-related
    items, are excess to the requirements of the Department for that
    purpose, and are suitable for transfer to the stockpile and disposal
    through the stockpile.
        ``(2) The Secretary of Defense shall determine whether materials are
    suitable for transfer to the stockpile under this subsection, are
    suitable for disposal through the stockpile, and are uncontaminated.''.
        (b) Conforming Amendment.--Subsection (a) of such section is amended
    by adding at the end the following:
                ``(10) Materials transferred to the stockpile under
            subsection (c).''.

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

             Subtitle A--Administration of Naval Petroleum Reserves

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        There is hereby authorized to be appropriated to the Secretary of
    Energy $148,786,000 for fiscal year 1996 for the purpose of

    [[Page 110 STAT. 631]]

    carrying out activities under chapter 641 of title 10, United States
    Code, relating to the naval petroleum reserves (as defined in section
    7420(2) of such title). Funds appropriated pursuant to such
    authorization shall remain available until expended. Of the amount
    appropriated pursuant to the authorization of appropriations in the
    preceding sentence, the Secretary may use not more than $7,000,000 for
    carrying out activities related to the sale of Naval Petroleum Reserve
    Numbered 1 under section 3412.
    SEC. 3402. <<NOTE: 10 USC 7430 note.>>  PRICE REQUIREMENT ON SALE
                              OF CERTAIN PETROLEUM DURING FISCAL YEAR
                              1996.

        Notwithstanding section 7430(b)(2) of title 10, United States Code,
    during fiscal year 1996, any sale of any part of the United States share
    of petroleum produced from Naval Petroleum Reserves Numbered 1, 2, and 3
    shall be made at a price not less than 90 percent of the current sales
    price, as estimated by the Secretary of Energy, of comparable petroleum
    in the same area.

    SEC. 3403. EXTENSION OF OPERATING CONTRACT FOR NAVAL PETROLEUM RESERVE
                NUMBERED 1.

        Section 3503 of the National Defense Authorization Act of Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 3111) is amended by striking
    out ``two years'' in the first sentence and inserting in lieu thereof
    ``three years''.

       Subtitle B <<NOTE: California. 10 USC 7420 note.>> --Sale of Naval
    Petroleum Reserve

    SEC. 3411. DEFINITIONS.

        For purposes of this subtitle:
                (1) The terms ``Naval Petroleum Reserve Numbered 1'' and
            ``reserve'' mean Naval Petroleum Reserve Numbered 1, commonly
            referred to as the Elk Hills Unit, located in Kern County,
            California, and established by Executive order of the President,
            dated September 2, 1912.
                (2) The term ``naval petroleum reserves'' has the meaning
            given that term in section 7420(2) of title 10, United States
            Code, except that the term does not include Naval Petroleum
            Reserve Numbered 1.
                (3) The term ``unit plan contract'' means the unit plan
            contract between equity owners of the lands within the
            boundaries of Naval Petroleum Reserve Numbered 1 entered into on
            June 19, 1944.
                (4) The term ``effective date'' means the date of the
            enactment of this Act.
                (5) The term ``Secretary'' means the Secretary of Energy.
                (6) The term ``appropriate congressional committees'' means
            the Committee on Armed Services of the Senate and the Committee
            on National Security and the Committee on Commerce of the House
            of Representatives.

    SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

        (a) Sale of Reserve Required.--Subject to section 3414, not later
    than two years after the effective date, the Secretary of Energy shall
    enter into one or more contracts for the sale of all right, title, and
    interest of the United States in and to all lands owned

    [[Page 110 STAT. 632]]

    or controlled by the United States inside Naval Petroleum Reserve
    Numbered 1. Chapter 641 of title 10, United States Code, shall not apply
    to the sale of the reserve.
        (b) Equity Finalization.--(1) Not later than eight months after the
    effective date, the Secretary shall finalize equity interests of the
    known oil and gas zones in Naval Petroleum Reserve Numbered 1 in the
    manner provided by this subsection.
        (2) The Secretary shall retain the services of an independent
    petroleum engineer, mutually acceptable to the equity owners, who shall
    prepare a recommendation on final equity figures. The Secretary may
    accept the recommendation of the independent petroleum engineer for
    final equity in each known oil and gas zone and establish final equity
    interest in Naval Petroleum Reserve Numbered 1 in accordance with the
    recommendation, or the Secretary may use such other method to establish
    final equity interest in the reserve as the Secretary considers
    appropriate.
        (3) If, on the effective date, there is an ongoing equity
    redetermination dispute between the equity owners under section 9(b) of
    the unit plan contract, the dispute shall be resolved in the manner
    provided in the unit plan contract within eight months after the
    effective date. The resolution shall be considered final for all
    purposes under this section.
        (c) <<NOTE: Publication.>>  Notice of Sale.--Not later than two
    months after the effective date, the Secretary shall publish a notice of
    intent to sell Naval Petroleum Reserve Numbered 1. The Secretary shall
    make all technical, geological, and financial information relevant to
    the sale of the reserve available to all interested and qualified buyers
    upon request. The Secretary, in consultation with the Administrator of
    General Services, shall ensure that the sale process is fair and open to
    all interested and qualified parties.

        (d) Establishment of Minimum Sale Price.--(1) Not later than seven
    months after the effective date, the Secretary shall retain the services
    of five independent experts in the valuation of oil and gas fields to
    conduct separate assessments, in a manner consistent with commercial
    practices, of the value of the interest of the United States in Naval
    Petroleum Reserve Numbered 1. The independent experts shall complete
    their assessments within 11 months after the effective date. In making
    their assessments, the independent experts shall consider (among other
    factors)--
                (A) all equipment and facilities to be included in the sale;
                (B) the estimated quantity of petroleum and natural gas in
            the reserve; and
                (C) the net present value of the anticipated revenue stream
            that the Secretary and the Director of the Office of Management
            and Budget jointly determine the Treasury would receive from the
            reserve if the reserve were not sold, adjusted for any
            anticipated increases in tax revenues that would result if the
            reserve were sold.

        (2) <<NOTE: Reports.>>  The independent experts retained under
    paragraph (1) shall also determine and submit to the Secretary the
    estimated total amount of the cost of any environmental restoration and
    remediation necessary at the reserve. The Secretary shall report the
    estimate to the Director of the Office of Management and Budget, the
    Secretary of the Treasury, and Congress.

        (3) The Secretary, in consultation with the Director of the Office
    of Management and Budget, shall set the minimum accept

    [[Page 110 STAT. 633]]

    able price for the reserve. The Secretary may not set the minimum
    acceptable price below the higher of--
                (A) the average of the five assessments prepared under
            paragraph (1); and
                (B) the average of three assessments after excluding the
            high and low assessments.

        (e) Administration of Sale; Draft Contract.--(1) Not later than two
    months after the effective date, the Secretary shall retain the services
    of an investment banker or an appropriate equivalent financial adviser
    to independently administer, in a manner consistent with commercial
    practices and in a manner that maximizes sale proceeds to the
    Government, the sale of Naval Petroleum Reserve Numbered 1 under this
    section. Costs and fees of retaining the investment banker or financial
    adviser may be paid out of the proceeds of the sale of the reserve.
        (2) Not later than 11 months after the effective date, the
    investment banker or financial adviser retained under paragraph (1)
    shall complete a draft contract or contracts for the sale of Naval
    Petroleum Reserve Numbered 1, which shall accompany the solicitation of
    offers and describe the terms and provisions of the sale of the interest
    of the United States in the reserve.
        (3) The draft contract or contracts shall identify--
                (A) all equipment and facilities to be included in the sale;
            and
                (B) any potential claim or liability (including liability
            for environmental restoration and remediation), and the extent
            of any such claim or liability, for which the United States is
            responsible under subsection (g).

        (4) The draft contract or contracts, including the terms and
    provisions of the sale of the interest of the United States in the
    reserve, shall be subject to review and approval by the Secretary, the
    Secretary of the Treasury, and the Director of the Office of Management
    and Budget. Each of those officials shall complete the review of, and
    approve or disapprove, the draft contract or contracts not later than 12
    months after the effective date.
        (f) <<NOTE: Publication.>>  Solicitation of Offers.--(1) Not later
    than 13 months after the effective date, the Secretary shall publish the
    solicitation of offers for Naval Petroleum Reserve Numbered 1.

        (2) Not later than 18 months after the effective date, the Secretary
    shall identify the highest responsible offer or offers for purchase of
    the interest of the United States in Naval Petroleum Reserve Numbered 1
    that, in total, meet or exceed the minimum acceptable price determined
    under subsection (d)(3).
        (3) The Secretary shall take such action immediately after the
    effective date as is necessary to obtain from an independent petroleum
    engineer within 10 months after that date a reserve report prepared in a
    manner consistent with commercial practices. The Secretary shall use the
    reserve report in support of the preparation of the solicitation of
    offers for the reserve.
        (g) Future Liabilities.--To effectuate the sale of the interest of
    the United States in Naval Petroleum Reserve Numbered 1, the Secretary
    may extend such indemnities and warranties as the Secretary considers
    reasonable and necessary to protect the purchaser from claims arising
    from the ownership in the reserve by the United States.
        (h) Maintaining Production.--Until the sale of Naval Petroleum
    Reserve Numbered 1 is completed under this section, the

    [[Page 110 STAT. 634]]

    Secretary shall continue to produce the reserve at the maximum daily oil
    or gas rate from a reservoir, which will permit maximum economic
    development of the reservoir consistent with sound oil field engineering
    practices in accordance with section 3 of the unit plan contract.
        (i) <<NOTE: Notification.>>  Noncompliance With Deadlines.--At any
    time during the two-year period beginning on the effective date, if the
    Secretary determines that the actions necessary to complete the sale of
    the reserve within that period are not being taken or timely completed,
    the Secretary shall transmit to the appropriate congressional committees
    a written notification of that determination together with a plan
    setting forth the actions that will be taken to ensure that the sale of
    the reserve will be completed within that period. The Secretary shall
    consult with the Director of the Office of Management and Budget in
    preparing the plan for submission to the committees.

        (j) Oversight.--The Comptroller General shall monitor the actions of
    the Secretary relating to the sale of the reserve and report to the
    appropriate congressional committees any findings on such actions that
    the Comptroller General considers appropriate to report to the
    committees.
        (k) Acquisition of Services.--The Secretary may enter into contracts
    for the acquisition of services required under this section under the
    authority of paragraph (7) of section 303(c) of the Federal Property and
    Administrative Services Act of 1949 (41 U.S.C. 253(c)), except that the
    notification required under subparagraph (B) of such paragraph for each
    contract shall be submitted to Congress not less than 7 days before the
    award of the contract.

    SEC. 3413. EFFECT OF SALE OF RESERVE.

        (a) Effect on Existing Contracts.--(1) In the case of any contract,
    in effect on the effective date, for the purchase of production from any
    part of the United States' share of Naval Petroleum Reserve Numbered 1,
    the sale of the interest of the United States in the reserve shall be
    subject to the contract for a period of three months after the closing
    date of the sale or until termination of the contract, whichever occurs
    first. The term of any contract entered into after the effective date
    for the purchase of the production shall not exceed the anticipated
    closing date for the sale of the reserve.
        (2) The Secretary shall exercise the termination procedures provided
    in the contract between the United States and Bechtel Petroleum
    Operation, Inc., Contract Number DE-ACO1-85FE60520 so that the contract
    terminates not later than the date of closing of the sale of Naval
    Petroleum Reserve Numbered 1 under section 3412.
        (3) The Secretary shall exercise the termination procedures provided
    in the unit plan contract so that the unit plan
    contract terminates not later than the date of closing of the sale of
    reserve.

        (b) Effect on Antitrust Laws.--Nothing in this subtitle shall be
    construed to alter the application of the antitrust laws of the United
    States to the purchaser or purchasers (as the case may be) of Naval
    Petroleum Reserve Numbered 1 or to the lands in the reserve subject to
    sale under section 3412 upon the completion of the sale.
        (c) Preservation of Private Right, Title, and Interest.--Nothing in
    this subtitle shall be construed to adversely affect the

    [[Page 110 STAT. 635]]

    ownership interest of any other entity having any right, title, and
    interest in and to lands within the boundaries of Naval Petroleum
    Reserve Numbered 1 and which are subject to the unit plan contract.
        (d) Transfer of Otherwise Nontransferable Permit.--The Secretary may
    transfer to the purchaser or purchasers (as the case may be) of Naval
    Petroleum Reserve Numbered 1 the incidental take permit regarding the
    reserve issued to the Secretary by the United States Fish and Wildlife
    Service and in effect on the effective date if the Secretary determines
    that transfer of the permit is necessary to expedite the sale of the
    reserve in a manner that maximizes the value of the sale to the United
    States. The transferred permit shall cover the identical activities, and
    shall be subject to the same terms and conditions, as apply to the
    permit at the time of the transfer.

    SEC. 3414. CONDITIONS ON SALE PROCESS.

        (a) Notice Regarding Sale Conditions.--The Secretary may not enter
    into any contract for the sale of Naval Petroleum Reserve Numbered 1
    under section 3412 until the end of the 31-day period beginning on the
    date on which the Secretary submits to the appropriate congressional
    committees a written notification--
                (1) describing the conditions of the proposed sale; and
                (2) containing an assessment by the Secretary of whether it
            is in the best interests of the United States to sell the
            reserve under such conditions.

        (b) Authority to Suspend Sale.--(1) The Secretary may suspend the
    sale of Naval Petroleum Reserve Numbered 1 under section 3412 if the
    Secretary and the Director of the Office of Management and Budget
    jointly determine that--
                (A) the sale is proceeding in a manner inconsistent with
            achievement of a sale price that reflects the full value of the
            reserve; or
                (B) a course of action other than the immediate sale of the
            reserve is in the best interests of the United States.

        (2) <<NOTE: Notification.>>  Immediately after making a
    determination under paragraph (1) to suspend the sale of Naval Petroleum
    Reserve Numbered 1, the Secretary shall submit to the appropriate
    congressional committees a written notification describing the basis for
    the determination and requesting a reconsideration of the merits of the
    sale of the reserve.

        (c) Effect of Reconsideration Notice.--After the Secretary submits a
    notification under subsection (b), the Secretary may not complete the
    sale of Naval Petroleum Reserve Numbered 1 under section 3412 or any
    other provision of law unless the sale of the reserve is authorized in
    an Act of Congress enacted after the date of the submission of the
    notification.
    SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING
                              RESERVE.

        (a) Reservation of Funds.--After the costs incurred in the conduct
    of the sale of Naval Petroleum Reserve Numbered 1 under section 3412 are
    deducted, nine percent of the remaining proceeds from the sale of the
    reserve shall be reserved in a contingent fund in the Treasury for
    payment to the State of California for the Teachers' Retirement Fund of
    the State in the event that, and to the extent that, the claims of the
    State against the United

    [[Page 110 STAT. 636]]

    States regarding production and proceeds of sale from Naval Petroleum
    Reserve Numbered 1 are--
                (1) settled by agreement with the United States under
            subsection (c); or
                (2) finally resolved in favor of the State by a court of
            competent jurisdiction, if a settlement agreement is not
            reached.

        (b) Disposition of Funds.--In such amounts as may be provided in
    appropriation Acts, amounts in the contingent fund shall be available
    for paying a claim described in subsection (a). After final disposition
    of the claims, any unobligated balance in the contingent fund shall be
    credited to the general fund of the Treasury. If no payment is made from
    the contingent fund within 10 years after the effective date, amounts in
    the contingent fund shall be credited to the general fund of the
    Treasury.
        (c) Settlement Offer.--Not later than 30 days after the date of the
    sale of Naval Petroleum Reserve Numbered 1 under section 3412, the
    Secretary shall offer to settle all claims of the State of California
    against the United States with respect to lands in the reserve located
    in sections 16 and 36 of township 30 south, range 23 east, Mount Diablo
    Principal Meridian, California, and production or proceeds of sale from
    the reserve, in order to provide proper compensation for the State's
    claims. The Secretary shall base the amount of the offered settlement
    payment from the contingent fund on the fair value for the State's
    claims, including the mineral estate, not to exceed the amount reserved
    in the contingent fund.
        (d) Release of Claims.--Acceptance of the settlement offer made
    under subsection (c) shall be subject to the condition that all claims
    against the United States by the State of California for the Teachers'
    Retirement Fund of the State be released with respect to lands in Naval
    Petroleum Reserve Numbered 1, including sections 16 and 36 of township
    30 south, range 23 east, Mount Diablo Principal Meridian, California, or
    production or proceeds of sale from the reserve.
    SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES.

        (a) Study Required.--The Secretary of Energy shall conduct a study
    to determine which of the following options, or combinations of options,
    regarding the naval petroleum reserves (other than Naval Petroleum
    Reserve Numbered 1) would maximize the value of the reserves to the
    United States:
                (1) Retention and operation of the naval petroleum reserves
            by the Secretary under chapter 641 of title 10, United States
            Code.
                (2) Transfer of all or a part of the naval petroleum
            reserves to the jurisdiction of another Federal agency for
            administration under chapter 641 of title 10, United States
            Code.
                (3) Transfer of all or a part of the naval petroleum
            reserves to the Department of the Interior for leasing in
            accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.)
            and surface management in accordance with the Federal Land
            Policy and Management Act (43 U.S.C. 1701 et seq.).
                (4) Sale of the interest of the United States in the naval
            petroleum reserves.

        (b) Conduct of Study.--The Secretary shall retain an independent
    petroleum consultant to conduct the study.

    [[Page 110 STAT. 637]]

        (c) Considerations Under Study.--An examination of the value to be
    derived by the United States from the transfer or sale of the naval
    petroleum reserves shall include an assessment and estimate of the fair
    market value of the interest of the United States in the naval petroleum
    reserves. The assessment and estimate shall be made in a manner
    consistent with customary property valuation practices in the oil and
    gas industry.
        (d) Report and Recommendations Regarding Study.--Not later than June
    1, 1996, the Secretary shall submit to Congress a report describing the
    results of the study and containing such recommendations (including
    proposed legislation) as the Secretary considers necessary to implement
    the option, or combination of options, identified in the study that
    would maximize the value of the naval petroleum reserves to the United
    States.

                       TITLE XXXV--PANAMA CANAL COMMISSION

    Subtitle A <<NOTE: Panama Canal Commission Authorization Act for Fiscal
    Year 1996.>> --Authorization of Appropriations

    SEC. 3501. SHORT TITLE.

        This subtitle may be cited as the ``Panama Canal Commission
    Authorization Act for Fiscal Year 1996''.

    SEC. 3502. AUTHORIZATION OF EXPENDITURES.

        (a) In General.--Subject to subsection (b), the Panama Canal
    Commission is authorized 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 without regard to fiscal year
    limitations, as may be necessary under the Panama Canal Act of 1979 (22
    U.S.C. 3601 et seq.) for the operation, maintenance, and improvement of
    the Panama Canal for fiscal year 1996.
        (b) Limitations.--For fiscal year 1996, the Panama Canal Commission
    may expend from funds in the Panama Canal Revolving Fund not more than
    $50,741,000 for administrative expenses, of which--
                (1) not more than $15,000 may be used for official reception
            and representation expenses of the Supervisory Board of the
            Commission;
                (2) not more than $10,000 may be used for official reception
            and representation expenses of the Secretary of the Commission;
            and
                (3) not more than $45,000 may be used for official reception
            and representation expenses of the Administrator of the
            Commission.

        (c) Replacement Vehicles.--Funds available to the Panama Canal
    Commission shall be available for the purchase of not to exceed 38
    passenger motor vehicles (including large heavy-duty vehicles to be used
    to transport Commission personnel across the isthmus of Panama) at a
    cost per vehicle of not more than $19,500. A vehicle may be purchased
    with such funds only as necessary to replace another passenger motor
    vehicle of the Commission.

    [[Page 110 STAT. 638]]

    SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.

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

          Subtitle B <<NOTE: Panama Canal Amendments Act of 1995.>> --
    Reconstitution of Commission as Government Corporation

    SEC. 3521. <<NOTE: 22 USC 3601 note.>>  SHORT TITLE.

        This subtitle may be cited as the ``Panama Canal Amendments Act of
    1995''.
    SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT CORPORATION.

        (a) In General.--Section 1101 of the Panama Canal Act of 1979 (22
    U.S.C. 3611) is amended to read as follows:

         ``establishment, purposes, offices, and residence of commission

        ``Sec. 1101. (a) For the purposes of managing, operating, and
    maintaining the Panama Canal and its complementary works, installations
    and equipment, and of conducting operations incident thereto, in
    accordance with the Panama Canal Treaty of 1977 and related agreements,
    the Panama Canal Commission (hereinafter in this Act referred to as the
    `Commission') is established as a wholly owned government corporation
    (as that term is used in chapter 91 of title 31, United States Code)
    within the executive branch of the Government of the United States. The
    authority of the President with respect to the Commission shall be
    exercised through the Secretary of Defense.

        ``(b) The principal office of the Commission shall be located in the
    Republic of Panama in one of the areas made available for use of the
    United States under the Panama Canal Treaty of 1977 and related
    agreements, but the Commission may establish branch offices in such
    other places as it considers necessary or appropriate for the conduct of
    its business. Within the meaning of the laws of the United States
    relating to venue in civil actions, the Commission is an inhabitant and
    resident of the District of Columbia and the eastern judicial district
    of Louisiana.''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of contents in section 1 of such Act is amended to read as
    follows:

    ``1101. Establishment, Purposes, Offices, and Residence of
               Commission.''.

    SEC. 3523. SUPERVISORY BOARD.

        Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 3612) is
    amended by striking out so much as precedes subsection (b) and inserting
    in lieu thereof the following:

                               ``supervisory board

        ``Sec. 1102. (a) The Commission shall be supervised by a Board
    composed of nine members, one of whom shall be the Secretary of Defense
    or an officer of the Department of Defense designated by the Secretary.
    Not less than five members of the Board shall be nationals of the United
    States and the remaining members

    [[Page 110 STAT. 639]]

    of the Board shall be nationals of the Republic of Panama. Three members
    of the Board who are nationals of the United States shall hold no other
    office in, and shall not be employed by, the Government of the United
    States, and shall be chosen for the independent perspective they can
    bring to the Commission's affairs. Members of the Board who are
    nationals of the United States shall cast their votes as directed by the
    Secretary of Defense or a designee of the Secretary of Defense.''.

    SEC. 3524. GENERAL AND SPECIFIC POWERS OF COMMISSION.

        (a) In General.--The Panama Canal Act of 1979 (22 U.S.C. 3601 et
    seq.) is amended by inserting after section 1102 the following new
    sections:

                         ``general powers of commission

        ``Sec. 1102a. <<NOTE: 22 USC 3612a.>>  (a) The Commission may adopt,
    alter, and use a corporate seal, which shall be judicially noticed.

        ``(b) The Commission may by action of the Board of Directors adopt,
    amend, and repeal bylaws governing the conduct
    of its general business and the performance of the powers and duties
    granted to or imposed upon it by law.

        ``(c) The Commission may sue and be sued in its corporate name,
    except that--
                ``(1) the amenability of the Commission to suit is limited
            by Article VIII of the Panama Canal Treaty of 1977, section 1401
            of this Act, and otherwise by law;
                ``(2) an attachment, garnishment, or similar process may not
            be issued against salaries or other moneys owed by the
            Commission to its employees except as provided by section 5520a
            of title 5, United States Code, and sections 459, 461, and 462
            of the Social Security Act (42 U.S.C. 659, 661, 662), or as
            otherwise specifically authorized by the laws of the United
            States; and
                ``(3) the Commission is exempt from the payment of interest
            on claims and judgments.

        ``(d) The Commission may enter into contracts, leases, agreements,
    or other transactions.
        ``(e) The Commission--
                ``(1) may determine the character of, and necessity for, its
            obligations and expenditures and the manner in which they shall
            be incurred, allowed, and paid; and
                ``(2) may incur, allow, and pay its obligations and
            expenditures, subject to pertinent provisions of law generally
            applicable to Government corporations.

        ``(f) The Commission shall have the priority of the Government of
    the United States in the payment of debts out of bankrupt estates.
        ``(g) The authority of the Commission under this section and section
    1102B is subject to the Panama Canal Treaty of 1977 and related
         agreements, and to chapter 91 of title 31, United States Code.

        ``Sec. 1102b. <<NOTE: 22 USC 3612b.>>  (a) The Commission may
    manage, operate, and maintain the Panama Canal.

        ``(b) The Commission may construct or acquire, establish, maintain,
    and operate such activities, facilities, and appurtenances as

    [[Page 110 STAT. 640]]

    necessary and appropriate for the accomplishment of the purposes of this
    Act, including the following:
                ``(1) Docks, wharves, piers, and other shoreline facilities.
                ``(2) Shops and yards.
                ``(3) Marine railways, salvage and towing facilities, fuel-
            handling facilities, and motor transportation facilities.
                ``(4) Power systems, water systems, and a telephone system.
                ``(5) Construction facilities.
                ``(6) Living quarters and other buildings.
                ``(7) Warehouses, storehouses, a printing plant, and
            manufacturing, processing, or service facilities in connection
            therewith.
                ``(8) Recreational facilities.

        ``(c) The Commission may use the United States mails in the same
    manner and under the same conditions as the executive departments of the
    Federal Government.
        ``(d) The Commission may take such actions as are necessary or
    appropriate to carry out the powers specifically conferred upon it.''.
        (b) Clerical Amendment.--The table of contents in section 1 of such
    Act is amended by inserting after the item relating to section 1102 the
    following new items:

    ``1102a. General powers of Commission.
    ``1102b. Specific powers of Commission.''.

    SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.

        Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 3712) is
    amended--
                (1) in subsection (c)--
                        (A) by striking out ``and subject to paragraph (2)''
                    in paragraph (1);
                        (B) by striking out paragraph (2); and
                        (C) by redesignating paragraph (3) as paragraph (2);
                    and
                (2) by striking out subsection (e) and inserting in lieu
            thereof the following new subsection (e):

        ``(e) In accordance with section 9104 of title 31, United States
    Code, Congress shall review the annual budget of the Commission.''.

    SEC. 3526. AUDITS.

        (a) In General.--Section 1313 of the Panama Canal Act of 1979 (22
    U.S.C. 3723) is amended--
                (1) by striking out the heading for the section and
            inserting in lieu thereof the following: ``audits'';
                (2) in subsection (a)--
                        (A) by striking out ``Financial transactions'' and
                    inserting in lieu thereof ``Notwithstanding any other
                    provision of law, and subject to subsection (d),
                    financial transactions'';
                        (B) by striking out ``pursuant to the Accounting and
                    Auditing Act of 1950 (31 U.S.C. 65 et seq.)'';
                        (C) by striking out ``audit pursuant to such Act''
                    in the second sentence and inserting in lieu thereof
                    ``such audit'';
                        (D) by striking out ``An audit pursuant to such
                    Act'' in the last sentence and inserting in lieu thereof
                    ``Any such audit''; and

    [[Page 110 STAT. 641]]

                        (E) by adding at the end the following new sentence:
                    ``An audit performed under this section is subject to
                    the requirements of paragraphs (2), (3), and (5) of
                    section 9105(a) of title 31, United States Code.'';
                (3) in subsection (b), by striking out ``The Comptroller
            General'' in the first sentence and inserting in lieu thereof
            ``Subject to subsection (d), the Comptroller General''; and
                (4) by adding at the end the following new subsections:

        ``(d) At the discretion of the Board provided for in section 1102,
    the Commission may hire independent auditors to perform, in lieu of the
    Comptroller General, the audit and reporting functions prescribed in
    subsections (a) and (b).
        ``(e) <<NOTE: Reports.>>  In addition to auditing the financial
    statements of the Commission, the Comptroller General (or the
    independent auditor if one is employed pursuant to subsection (d))
    shall, in accordance with standards for an examination of a financial
    forecast established by the American Institute of Certified Public
    Accountants, examine and report on the Commission's financial forecast
    that it will be in a position to meet its financial liabilities on
    December 31, 1999.''.

        (b) Clerical Amendment.--The item relating to such section in the
    table of contents in section 1 of such Act is amended to read as
    follows:

    ``1313. Audits.''.

    SEC. 3527. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF TOLLS.

        Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 3791) is
    amended to read as follows:

             ``prescription of measurement rules and rates of tolls

        ``Sec. 1601. The Commission may, subject to the provisions of this
    Act, prescribe and from time to time change--
                ``(1) the rules for the measurement of vessels for the
            Panama Canal; and
                ``(2) the tolls that shall be levied for use of the Panama
            Canal.''.
    SEC. 3528. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT AND
                              RATES OF TOLLS.

        Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 3794) is
    amended--
                (1) in subsection (a), by striking out ``1601(a)'' in the
            first sentence and inserting in lieu thereof ``1601'';
                (2) by striking out subsection (c) and inserting in lieu
            thereof the following new subsection (c):

        ``(c) <<NOTE: Federal Register, publication.>>  After the
    proceedings have been conducted pursuant to subsections (a) and (b), the
    Commission may change the rules of measurement or rates of tolls, as the
    case may be. The Commission shall publish notice of any such change in
    the Federal Register not less than 30 days before the effective date of
    the change.''; and
                (3) by striking out subsections (d) and (e) and
            redesignating subsection (f) as subsection (d).

    SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.

        The Panama Canal Act of 1979 is amended--

    [[Page 110 STAT. 642]]

                (1) in section 1205 (22 U.S.C. 3645), by striking out
            ``appropriation'' in the last sentence and inserting in lieu
            thereof ``fund'';
                (2) in section 1303 (22 U.S.C. 3713), by striking out ``The
            authority of this section may not be used for administrative
            expenses.'';
                (3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out
            ``appropriations or'' in the second sentence;
                (4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out
            ``appropriated for or'' in the first sentence;
                (5) in section 1415 (22 U.S.C. 3775), by striking out
            ``appropriated or'' in the second sentence; and
                (6) in section 1416 (22 U.S.C. 3776), by striking out
            ``appropriated or'' in the third sentence.
    SEC. 3530. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES CODE.

        Section 9101(3) of title 31, United States Code, is amended by
    adding at the end the following:
                        ``(P) the Panama Canal Commission.''.

              DIVISION D <<NOTE: Federal Acquisition Reform Act of
    1996. Contracts.>> --FEDERAL ACQUISITION REFORM

    SEC. 4001. <<NOTE: 41 USC 251 note.>>  SHORT TITLE.

        This division may be cited as the ``Federal Acquisition Reform Act
    of 1996''.

                             TITLE XLI--COMPETITION

    SEC. 4101. EFFICIENT COMPETITION.

        (a) Armed Services Acquisitions.--Section 2304 of title 10, United
    States Code, is amended--
                (1) by redesignating subsection (j) as subsection (k); and
                (2) by inserting after subsection (i) the following new
            subsection (j):

        ``(j) The Federal Acquisition Regulation shall ensure that the
    requirement to obtain full and open competition is implemented in a
    manner that is consistent with the need to efficiently fulfill the
    Government's requirements.''.
        (b) Civilian Agency Acquisitions.--Section 303 of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 253) is
    amended--
                (1) by redesignating subsection (h) as subsection (i); and
                (2) by inserting after subsection (g) the following new
            subsection (h):

        ``(h) The Federal Acquisition Regulation shall ensure that the
    requirement to obtain full and open competition is implemented in a
    manner that is consistent with the need to efficiently fulfill the
    Government's requirements.''.
        (c) Revisions to Notice Thresholds.--Section 18(a)(1)(B) of the
    Office of Federal Procurement Policy Act (41 U.S.C. 416(a)(1)(B)) is
    amended--

    [[Page 110 STAT. 643]]

                (A) by striking out ``subsection (f)--'' and all that
            follows through the end of the subparagraph and inserting in
            lieu thereof ``subsection (b); and''; and
                (B) by inserting after ``property or services'' the
            following: ``for a price expected to exceed $10,000, but not to
            exceed $25,000,''.

    SEC. 4102. EFFICIENT APPROVAL PROCEDURES.

        (a) Armed Services Acquisitions.--Section 2304(f)(1)(B) of title 10,
    United States Code, is amended--
                (1) in clause (i)--
                        (A) by striking out ``$100,000 (but equal to or less
                    than $1,000,000)'' and inserting in lieu thereof
                    ``$500,000 (but equal to or less than $10,000,000)'';
                    and
                        (B) by striking out ``(ii), (iii), or (iv)'' and
                    inserting in lieu thereof ``(ii) or (iii)'';
                (2) in clause (ii)--
                        (A) by striking out ``$1,000,000 (but equal to or
                    less than $10,000,000)'' and inserting in lieu thereof
                    ``$10,000,000 (but equal to or less than $50,000,000)'';
                    and
                        (B) by adding ``or'' at the end;
                (3) by striking out clause (iii); and
                (4) by redesignating clause (iv) as clause (iii).

        (b) Civilian Agency Acquisitions.--Section 303(f)(1)(B) of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    253(f)(1)(B)) is amended--
                (1) in clause (i)--
                        (A) by striking out ``$100,000 (but equal to or less
                    than $1,000,000)'' and inserting in lieu thereof
                    ``$500,000 (but equal to or less than $10,000,000)'';
                    and
                        (B) by striking out ``(ii), (iii), or (iv);'' and
                    inserting in lieu thereof ``(ii) or (iii); and'';
                (2) in clause (ii)--
                        (A) by striking out ``$1,000,000 (but equal to or
                    less than $10,000,000)'' and inserting in lieu thereof
                    ``$10,000,000 (but equal to or less than $50,000,000)'';
                    and
                        (B) by striking out the semicolon after ``civilian''
                    and inserting in lieu thereof a comma; and
                (3) in clause (iii), by striking out ``$10,000,000'' and
            inserting in lieu thereof ``$50,000,000''.

    SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS.

        (a) Armed Services Acquisitions.--Paragraph (4) of 2305(b) of title
    10, United States Code, is amended--
                (1) in subparagraph (C), by striking out ``(C)'', by
            transferring the text to the end of subparagraph (B), and in
            that text by striking out ``Subparagraph (B)'' and inserting in
            lieu thereof ``This subparagraph'';
                (2) by redesignating subparagraph (B) as subparagraph (C);
            and
                (3) by inserting before subparagraph (C) (as so
            redesignated) the following new subparagraph (B):

        ``(B) If the contracting officer determines that the number of
    offerors that would otherwise be included in the competitive range under
    subparagraph (A)(i) exceeds the number at which an efficient competition
    can be conducted, the contracting officer may limit the number of
    proposals in the competitive range, in accordance with the criteria
    specified in the solicitation, to the greatest number

    [[Page 110 STAT. 644]]

    that will permit an efficient competition among the offerors rated most
    highly in accordance with such criteria.''.
        (b) Civilian Agency Acquisitions.--Section 303B(d) of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 253b(d)) is
    amended--
                (1) by redesignating paragraph (2) as paragraph (3); and
                (2) by inserting before paragraph (3) (as so redesignated)
            the following new paragraph (2):

        ``(2) If the contracting officer determines that the number of
    offerors that would otherwise be included in the competitive range under
    paragraph (1)(A) exceeds the number at which an efficient competition
    can be conducted, the contracting officer may limit the number of
    proposals in the competitive range, in accordance with the criteria
    specified in the solicitation, to the greatest number that will permit
    an efficient competition among the offerors rated most highly in
    accordance with such criteria.''.

    SEC. 4104. PREAWARD DEBRIEFINGS.

        (a) Armed Services Acquisitions.--Section 2305(b) of title 10,
    United States Code, is amended--
                (1) by striking out subparagraph (F) of paragraph (5);
                (2) by redesignating paragraph (6) as paragraph (9); and
                (3) by inserting after paragraph (5) the following new
            paragraphs:

        ``(6)(A) When the contracting officer excludes an offeror submitting
    a competitive proposal from the competitive range (or otherwise excludes
    such an offeror from further consideration prior to the final source
    selection decision), the excluded offeror may request in writing, within
    three days after the date on which the excluded offeror receives notice
    of its exclusion, a debriefing prior to award. The contracting officer
    shall make every effort to debrief the unsuccessful offeror as soon as
    practicable but may refuse the request for a debriefing if it is not in
    the best interests of the Government to conduct a debriefing at that
    time.
        ``(B) The contracting officer is required to debrief an excluded
    offeror in accordance with paragraph (5) of this section only if that
    offeror requested and was refused a preaward debriefing under
    subparagraph (A) of this paragraph.

        ``(C) The debriefing conducted under this subsection shall include--
                ``(i) the executive agency's evaluation of the significant
            elements in the offeror's offer;
                ``(ii) a summary of the rationale for the offeror's
            exclusion; and
                ``(iii) reasonable responses to relevant questions posed by
            the debriefed offeror as to whether source selection procedures
            set forth in the solicitation, applicable regulations, and other
            applicable authorities were followed by the executive agency.

        ``(D) The debriefing conducted pursuant to this subsection may not
    disclose the number or identity of other offerors and shall not disclose
    information about the content, ranking, or evaluation of other offerors'
    proposals.
        ``(7) The contracting officer shall include a summary of any
    debriefing conducted under paragraph (5) or (6) in the contract file.
        ``(8) The Federal Acquisition Regulation shall include a provision
    encouraging the use of alternative dispute resolution tech

    [[Page 110 STAT. 645]]

    niques to provide informal, expeditious, and inexpensive procedures for
    an offeror to consider using before filing a protest, prior to the award
    of a contract, of the exclusion of the offeror from the competitive
    range (or otherwise from further consideration) for that contract.''.
        (b) Civilian Agency Acquisitions.--Section 303B of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 253b) is
    amended--
                (1) by striking out paragraph (6) of subsection (e);
                (2) by redesignating subsections (f), (g), (h), and (i) as
            subsections (i), (j), (k), and (l), respectively; and
                (3) by inserting after subsection (e) the following new
            subsections:

        ``(f)(1) When the contracting officer excludes an offeror submitting
    a competitive proposal from the competitive range (or otherwise excludes
    such an offeror from further consideration prior to the final source
    selection decision), the excluded offeror may request in writing, within
    3 days after the date on which the excluded offeror receives notice of
    its exclusion, a debriefing prior to award. The contracting officer
    shall make every effort to debrief the unsuccessful offeror as soon as
    practicable but may refuse the request for a debriefing if it is not in
    the best interests of the Government to conduct a debriefing at that
    time.
        ``(2) The contracting officer is required to debrief an excluded
    offeror in accordance with subsection (e) of this section
    only if that offeror requested and was refused a preaward debriefing
    under paragraph (1) of this subsection.

        ``(3) The debriefing conducted under this subsection shall include--
                ``(A) the executive agency's evaluation of the significant
            elements in the offeror's offer;
                ``(B) a summary of the rationale for the offeror's
            exclusion; and
                ``(C) reasonable responses to relevant questions posed by
            the debriefed offeror as to whether source selection procedures
            set forth in the solicitation, applicable regulations, and other
            applicable authorities were followed by the executive agency.

        ``(4) The debriefing conducted pursuant to this subsection may not
    disclose the number or identity of other offerors and shall not disclose
    information about the content, ranking, or evaluation of other offerors'
    proposals.
        ``(g) The contracting officer shall include a summary of any
    debriefing conducted under subsection (e) or (f) in the contract file.
        ``(h) The Federal Acquisition Regulation shall include a provision
    encouraging the use of alternative dispute resolution techniques to
    provide informal, expeditious, and inexpensive procedures for an offeror
    to consider using before filing a protest, prior to the award of a
    contract, of the exclusion of the offeror from the competitive range (or
    otherwise from further consideration) for that contract.''.

    SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.

        (a) Armed Services Acquisitions.--(1) Chapter 137 of title 10,
    United States Code, is amended by inserting after section 2305 the
    following new section:

    [[Page 110 STAT. 646]]

    ``Sec. 2305a. Design-build selection procedures

        ``(a) Authorization.--Unless the traditional acquisition approach of
    design-bid-build established under the Brooks Architect-Engineers Act
    (41 U.S.C. 541 et seq.) is used or another acquisition procedure
    authorized by law is used, the head of an agency shall use the two-phase
    selection procedures authorized in this section for entering into a
    contract for the design and construction of a public building, facility,
    or work when a determination is made under subsection (b) that the
    procedures are appropriate for use.
        ``(b) Criteria for Use.--A contracting officer shall make a
    determination whether two-phase selection procedures are appropriate for
    use for entering into a contract for the design and construction of a
    public building, facility, or work when the contracting officer
    anticipates that three or more offers will be received for such
    contract, design work must be performed before an offeror can develop a
    price or cost proposal for such contract, the offeror will incur a
    substantial amount of expense in preparing the offer, and the
    contracting officer has considered information such as the following:
                ``(1) The extent to which the project requirements have been
            adequately defined.
                ``(2) The time constraints for delivery of the project.
                ``(3) The capability and experience of potential
            contractors.
                ``(4) The suitability of the project for use of the two-
            phase selection procedures.
                ``(5) The capability of the agency to manage the two-phase
            selection process.
                ``(6) Other criteria established by the agency.

        ``(c) Procedures Described.--Two-phase selection procedures consist
    of the following:
                ``(1) The agency develops, either in-house or by contract, a
            scope of work statement for inclusion in the solicitation that
            defines the project and provides prospective offerors with
            sufficient information regarding the Government's requirements
            (which may include criteria and preliminary design, budget
            parameters, and schedule or delivery requirements) to enable the
            offerors to submit proposals which meet the Government's needs.
            If the agency contracts for development of the scope of work
            statement, the agency shall contract for architectural and
            engineering services as defined by and in accordance with the
            Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
                ``(2) The contracting officer solicits phase-one proposals
            that--
                        ``(A) include information on the offeror's--
                              ``(i) technical approach; and
                              ``(ii) technical qualifications; and
                        ``(B) do not include--
                              ``(i) detailed design information; or
                              ``(ii) cost or price information.
                ``(3) The evaluation factors to be used in evaluating phase-
            one proposals are stated in the solicitation and include
            specialized experience and technical competence, capability to
            perform, past performance of the offeror's team (including the
            architect-engineer and construction members of the team) and
            other appropriate factors, except that cost-related or price-
            related evaluation factors are not permitted. Each solicitation
            estab

    [[Page 110 STAT. 647]]

            lishes the relative importance assigned to the evaluation
            factors and subfactors that must be considered in the evaluation
            of phase-one proposals. The agency evaluates phase-one proposals
            on the basis of the phase-one evaluation factors set forth in
            the solicitation.
                ``(4) The contracting officer selects as the most highly
            qualified the number of offerors specified in the solicitation
            to provide the property or services under the contract and
            requests the selected offerors to submit phase-two competitive
            proposals that include technical proposals and cost or price
            information. Each solicitation establishes with respect to phase
            two--
                        ``(A) the technical submission for the proposal,
                    including design concepts or proposed solutions to
                    requirements addressed within the scope of work (or
                    both), and
                        ``(B) the evaluation factors and subfactors,
                    including cost or price, that must be considered in the
                    evaluations of proposals in accordance with paragraphs
                    (2), (3), and (4) of section 2305(a) of this title.
            The contracting officer separately evaluates the submissions
            described in subparagraphs (A) and (B).
                ``(5) The agency awards the contract in accordance with
            section 2305(b)(4) of this title.

        ``(d) Solicitation to State Number of Offerors To Be Selected for
    Phase Two Requests for Competitive Proposals.--A solicitation issued
    pursuant to the procedures described in subsection (c) shall state the
    maximum number of offerors that are to be selected to submit competitive
    proposals pursuant to subsection (c)(4). The maximum number specified in
    the solicitation shall not exceed 5 unless the agency determines with
    respect to an individual solicitation that a specified number greater
    than 5 is in the Government's interest and is consistent with the
    purposes and objectives of the two-phase selection process.
        ``(e) Requirement for Guidance and Regulations.--The Federal
    Acquisition Regulation shall include guidance--
                ``(1) regarding the factors that may be considered in
            determining whether the two-phase contracting procedures
            authorized by subsection (a) are appropriate for use in
            individual contracting situations;
                ``(2) regarding the factors that may be used in selecting
            contractors; and
                ``(3) providing for a uniform approach to be used
            Government-wide.''.

        (2) The table of sections at the beginning of chapter 137 of such
    title is amended by adding after the item relating to section 2305 the
    following new item:

    ``2305a. Design-build selection procedures.''.

        (b) Civilian Agency Acquisitions.--(1) Title III of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)
    is amended by inserting after section 303L the following new section:

    ``SEC. 303M. <<NOTE: 41 USC 253m.>>  DESIGN-BUILD SELECTION PROCEDURES.

        ``(a) Authorization.--Unless the traditional acquisition approach of
    design-bid-build established under the Brooks Architect-Engineers Act
    (title IX of this Act) is used or another acquisition procedure
    authorized by law is used, the head of an executive agency shall use the
    two-phase selection procedures authorized

    [[Page 110 STAT. 648]]

    in this section for entering into a contract for the design and
    construction of a public building, facility, or work when a
    determination is made under subsection (b) that the procedures are
    appropriate for use.
        ``(b) Criteria for Use.--A contracting officer shall make a
    determination whether two-phase selection procedures are appropriate for
    use for entering into a contract for the design and construction of a
    public building, facility, or work when the contracting officer
    anticipates that three or more offers will be received for such
    contract, design work must be performed before an offeror can develop a
    price or cost proposal for such contract, the offeror will incur a
    substantial amount of expense in preparing the offer, and the
    contracting officer has considered information such as the following:
                ``(1) The extent to which the project requirements have been
            adequately defined.
                ``(2) The time constraints for delivery of the project.
                ``(3) The capability and experience of potential
            contractors.
                ``(4) The suitability of the project for use of the two-
            phase selection procedures.
                ``(5) The capability of the agency to manage the two-phase
            selection process.
                ``(6) Other criteria established by the agency.

        ``(c) Procedures Described.--Two-phase selection procedures consist
    of the following:
                ``(1) The agency develops, either in-house or by contract, a
            scope of work statement for inclusion in the solicitation that
            defines the project and provides prospective offerors with
            sufficient information regarding the Government's requirements
            (which may include criteria and preliminary design, budget
            parameters, and schedule or delivery requirements) to enable the
            offerors to submit proposals which meet the Government's needs.
            If the agency contracts for development of the scope of work
            statement, the agency shall contract for architectural and
            engineering services as defined by and in accordance with the
            Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).
                ``(2) The contracting officer solicits phase-one proposals
            that--
                        ``(A) include information on the offeror's--
                              ``(i) technical approach; and
                              ``(ii) technical qualifications; and
                        ``(B) do not include--
                              ``(i) detailed design information; or
                              ``(ii) cost or price information.
                ``(3) The evaluation factors to be used in evaluating phase-
            one proposals are stated in the solicitation and include
            specialized experience and technical competence, capability to
            perform, past performance of the offeror's team (including the
            architect-engineer and construction members of the team) and
            other appropriate factors, except that cost-related or price-
            related evaluation factors are not permitted. Each solicitation
            establishes the relative importance assigned to the evaluation
            factors and subfactors that must be considered in the evaluation
            of phase-one proposals. The agency evaluates phase-one proposals
            on the basis of the phase-one evaluation factors set forth in
            the solicitation.

    [[Page 110 STAT. 649]]

                ``(4) The contracting officer selects as the most highly
            qualified the number of offerors specified in the solicitation
            to provide the property or services under the contract and
            requests the selected offerors to submit phase-two competitive
            proposals that include technical proposals and cost or price
            information. Each solicitation establishes with respect to phase
            two--
                        ``(A) the technical submission for the proposal,
                    including design concepts or proposed solutions to
                    requirements addressed within the scope of work (or
                    both), and
                        ``(B) the evaluation factors and subfactors,
                    including cost or price, that must be considered in the
    evaluations of proposals in accordance with subsections (b), (c), and
    (d) of section 303A.
            The contracting officer separately evaluates the submissions
            described in subparagraphs (A) and (B).
                ``(5) The agency awards the contract in accordance with
            section 303B of this title.

        ``(d) Solicitation to State Number of Offerors To Be Selected for
    Phase Two Requests for Competitive Proposals.--A solicitation issued
    pursuant to the procedures described in subsection (c) shall state the
    maximum number of offerors that are to be selected to submit competitive
    proposals pursuant to subsection (c)(4). The maximum number specified in
    the solicitation shall not exceed 5 unless the agency determines with
    respect to an individual solicitation that a specified number greater
    than 5 is in the Government's interest and is consistent with the
    purposes and objectives of the two-phase selection process.
        ``(e) Requirement for Guidance and Regulations.--The Federal
    Acquisition Regulation shall include guidance--
                ``(1) regarding the factors that may be considered in
            determining whether the two-phase contracting procedures
            authorized by subsection (a) are appropriate for use in
            individual contracting situations;
                ``(2) regarding the factors that may be used in selecting
            contractors; and
                ``(3) providing for a uniform approach to be used
            Government-wide.''.

        (2) The table of sections at the beginning of such Act is amended by
    inserting after the item relating to section 303L the following new
    item:

    ``Sec. 303M. Design-build selection procedures.''.

                          TITLE XLII--COMMERCIAL ITEMS

    SEC. 4201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR CERTIFIED
                              COST OR PRICING DATA.

        (a) Armed Services Acquisitions.--(1) Subsections (b), (c), and (d)
    of section 2306a of title 10, United States Code, are amended to read as
    follows:
        ``(b) Exceptions.--
                ``(1) In general.--Submission of certified cost or pricing
            data shall not be required under subsection (a) in the case of a
            contract, a subcontract, or modification of a contract or
            subcontract--
                        ``(A) for which the price agreed upon is based on--
                              ``(i) adequate price competition; or

    [[Page 110 STAT. 650]]

                              ``(ii) prices set by law or regulation;
                        ``(B) for the acquisition of a commercial item; or
                        ``(C) in an exceptional case when the head of the
                    procuring activity, without delegation, determines that
                    the requirements of this section may be waived and
                    justifies in writing the reasons for such determination.
                ``(2) Modifications of contracts and subcontracts for
            commercial items.--In the case of a modification of a contract
            or subcontract for a commercial item that is not covered by the
            exception to the submission of certified cost or pricing data in
            paragraph (1)(A) or (1)(B), submission of certified cost or
            pricing data shall not be required under subsection (a) if--
                        ``(A) the contract or subcontract being modified is
                    a contract or subcontract for which submission of
                    certified cost or pricing data may not be required by
                    reason of paragraph (1)(A) or (1)(B); and
                        ``(B) the modification would not change the contract
                    or subcontract, as the case may be, from a contract or
                    subcontract for the acquisition of a commercial item to
                    a contract or subcontract for the acquisition of an item
                    other than a commercial item.

        ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
                ``(1) Authority to require submission.--Subject to paragraph
            (2), when certified cost or pricing data are not required to be
            submitted by subsection (a) for a contract, subcontract, or
            modification of a contract or subcontract, such data may
            nevertheless be required to be submitted by the head of the
            procuring activity, but only if the head of the procuring
            activity determines that such data are necessary for the
            evaluation by the agency of the reasonableness of the price of
            the contract, subcontract, or modification of a contract or
            subcontract. In any case in which the head of the procuring
            activity requires such data to be submitted under this
            subsection, the head of the procuring activity shall justify in
            writing the reason for such requirement.
                ``(2) Exception.--The head of the procuring activity may not
            require certified cost or pricing data to be submitted under
            this paragraph for any contract or subcontract, or modification
            of a contract or subcontract, covered by the exceptions in
            subparagraph (A) or (B) of subsection (b)(1).
                ``(3) Delegation of authority prohibited.--The head of a
            procuring activity may not delegate functions under this
            paragraph.

        ``(d) Submission of Other Information.--
                ``(1) Authority to require submission.--When certified cost
            or pricing data are not required to be submitted under this
            section for a contract, subcontract, or modification of a
            contract or subcontract, the contracting officer shall require
            submission of data other than certified cost or pricing data to
            the extent necessary to determine the reasonableness of the
            price of the contract, subcontract, or modification of the
            contract or subcontract. Except in the case of a contract or
            subcontract covered by the exceptions in subsection (b)(1)(A),
            the data submitted shall include, at a minimum, appropriate
            information on the prices at which the same item or similar

    [[Page 110 STAT. 651]]

            items have previously been sold
    that is adequate for evaluating the reasonableness of the price for the
    procurement.
                ``(2) Limitations on authority.--The Federal Acquisition
            Regulation shall include the following provisions regarding the
            types of information that contracting officers may require under
            paragraph (1):
                        ``(A) Reasonable limitations on requests for sales
                    data relating to commercial items.
                        ``(B) A requirement that a contracting officer
                    limit, to the maximum extent practicable, the scope of
                    any request for information relating to commercial items
                    from an offeror to only that information that is in the
                    form regularly maintained by the offeror in commercial
                    operations.
                        ``(C) A statement that any information received
                    relating to commercial items that is exempt from
                    disclosure under section 552(b) of title 5 shall not be
                    disclosed by the Federal Government.''.

        (2) Section 2306a of such title is further amended--
                (A) by striking out subsection (h); and
                (B) by redesignating subsection (i) as subsection (h).

        (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c) and (d)
    of section 304A of the Federal Property and Administrative Services Act
    of 1949 (41 U.S.C. 254b) are amended to read as follows:
        ``(b) Exceptions.--
                ``(1) In general.--Submission of certified cost or pricing
            data shall not be required under subsection (a) in the case of a
            contract, a subcontract, or a modification of a contract or
            subcontract--
                        ``(A) for which the price agreed upon is based on--
                              ``(i) adequate price competition; or
                              ``(ii) prices set by law or regulation;
                        ``(B) for the acquisition of a commercial item; or
                        ``(C) in an exceptional case when the head of the
                    procuring activity, without delegation, determines that
                    the requirements of this section may be waived and
                    justifies in writing the reasons for such determination.
                ``(2) Modifications of contracts and subcontracts for
            commercial items.--In the case of a modification of a contract
            or subcontract for a commercial item that is not covered by the
            exception to the submission of certified cost or pricing data in
            paragraph (1)(A) or (1)(B), submission of certified cost or
            pricing data shall not be required under subsection (a) if--
                        ``(A) the contract or subcontract being modified is
                    a contract or subcontract for which submission of
                    certified cost or pricing data may not be required by
                    reason of paragraph (1)(A) or (1)(B); and
                        ``(B) the modification would not change the contract
                    or subcontract, as the case may be, from a contract or
                    subcontract for the acquisition of a commercial item to
                    a contract or subcontract for the acquisition of an item
                    other than a commercial item.

        ``(c) Cost or Pricing Data on Below-Threshold Contracts.--
                ``(1) Authority to require submission.--Subject to paragraph
            (2), when certified cost or pricing data are not required

    [[Page 110 STAT. 652]]

            to be submitted by subsection (a) for a contract, subcontract,
            or modification of a contract or subcontract, such data may
            nevertheless be required to be submitted by the head of the
            procuring activity, but only if the head of the procuring
            activity determines that such data are necessary for the
            evaluation by the agency of the reasonableness of the price of
            the contract, subcontract, or modification of a contract or
            subcontract. In any case in which the head of the procuring
            activity requires such data to be submitted under this
            subsection, the head of the procuring activity shall justify in
            writing the reason for such requirement.
                ``(2) Exception.--The head of the procuring activity may not
            require certified cost or pricing data to be submitted under
            this paragraph for any contract or subcontract, or modification
            of a contract or subcontract, covered by the exceptions in
            subparagraph (A) or (B) of subsection (b)(1).
                ``(3) Delegation of authority prohibited.--The head of a
            procuring activity may not delegate the functions under this
            paragraph.

        ``(d) Submission of Other Information.--
                ``(1) Authority to require submission.--When certified cost
            or pricing data are not required to be submitted under this
            section for a contract, subcontract, or modification of a
            contract or subcontract, the contracting officer shall require
            submission of data other than certified cost or pricing data to
            the extent necessary to determine the reasonableness of the
            price of the contract, subcontract, or modification of the
            contract or subcontract. Except in the case of a contract or
            subcontract covered by the exceptions in subsection (b)(1)(A),
            the data submitted shall include, at a minimum, appropriate
            information on the prices at which the same item or similar
            items have previously been sold that is adequate for evaluating
            the reasonableness of the price for the procurement.
                ``(2) Limitations on authority.--The Federal Acquisition
            Regulation shall include the following provisions regarding the
            types of information that contracting officers may require under
            paragraph (1):
                        ``(A) Reasonable limitations on requests for sales
                    data relating to commercial items.
                        ``(B) A requirement that a contracting officer
                    limit, to the maximum extent practicable, the scope of
                    any request for information relating to commercial items
                    from an offeror to only that information that is in the
                    form regularly maintained by the offeror in commercial
                    operations.
                        ``(C) A statement that any information received
                    relating to commercial items that is exempt from
                    disclosure under section 552(b) of title 5 shall not be
                    disclosed by the Federal Government.''.

        (2) Section 304A of such Act is further amended--
                (A) by striking out subsection (h); and
                (B) by redesignating subsection (i) as subsection (h).
    SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN
                              COMMERCIAL ITEMS.

        (a) Armed Services Acquisitions.--(1) Section 2304(g) of title 10,
    United States Code, is amended--

    [[Page 110 STAT. 653]]

                (A) in paragraph (1), by striking out ``shall provide for
            special simplified procedures for purchases of'' and all that
            follows through the end of the paragraph and inserting in lieu
            thereof the following: ``shall provide for--
                ``(A) special simplified procedures for purchases of
            property and services for amounts not greater than the
            simplified acquisition threshold; and
                ``(B) special simplified procedures for purchases of
            property and services for amounts greater than the simplified
            acquisition threshold but not greater than $5,000,000 with
            respect to which the contracting officer reasonably expects,
            based on the nature of the property or services sought and on
            market research, that offers will include only commercial
            items.''; and
                (B) by adding at the end the following new paragraph:

        ``(4) The head of an agency shall comply with the Federal
    Acquisition Regulation provisions referred to in section 31(g) of the
    Office of Federal Procurement Policy Act (41 U.S.C. 427).''.
        (2) Section 2305 of title 10, United States Code, is amended in
    subsection (a)(2) by inserting after ``(other than for'' the following:
    ``a procurement for commercial items using special simplified procedures
    or''.
        (b) Civilian Agency Acquisitions.--(1) Section 303(g) of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)) is
    amended--
                (A) in paragraph (1), by striking out ``shall provide for
            special simplified procedures for purchases of'' and all that
            follows through the end of the paragraph and inserting in lieu
            thereof the following: ``shall provide for--
                ``(A) special simplified procedures for purchases of
            property and services for amounts not greater than the
            simplified acquisition threshold; and
                ``(B) special simplified procedures for purchases of
            property and services for amounts greater than the simplified
            acquisition threshold but not greater than $5,000,000 with
            respect to which the contracting officer reasonably expects,
            based on the nature of the property or services sought and on
            market research, that offers will include only commercial
            items.''; and
                (B) by adding at the end the following new paragraph:

        ``(5) An executive agency shall comply with the Federal Acquisition
    Regulation provisions referred to in section 31(g) of the Office of
    Federal Procurement Policy Act (41 U.S.C. 427).''.
        (2) Section 303A of such Act (41 U.S.C. 253a) is amended in
    subsection (b) by inserting after ``(other than for'' the following: ``a
    procurement for commercial items using special simplified procedures
    or''.
        (c) Acquisitions Generally.--Section 31 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 427) is amended--
                (1) in subsection (a), by striking out ``shall provide for
            special simplified procedures for purchases of'' and all that
            follows through the end of the subsection and inserting in lieu
            thereof the following: ``shall provide for--
                ``(1) special simplified procedures for purchases of
            property and services for amounts not greater than the
            simplified acquisition threshold; and
                ``(2) special simplified procedures for purchases of
            property and services for amounts greater than the simplified
            acquisition threshold but not greater than $5,000,000 with
            respect to which

    [[Page 110 STAT. 654]]

            the contracting officer reasonably expects, based on the nature
            of the property or services sought and on market research, that
            offers will include only commercial items.''; and
                (2) by adding at the end the following new subsection:

        ``(g) Special Rules for Commercial Items.--The Federal Acquisition
    Regulation shall provide that, in the case of a purchase of commercial
    items using special simplified procedures, an executive agency--
                ``(1) <<NOTE: Notice Publication.>>  shall publish a notice
            in accordance with section 18 and, as provided in subsection
            (b)(4) of such section, permit all responsible sources to submit
            a bid, proposal, or quotation (as appropriate) which shall be
            considered by the agency;
                ``(2) may not conduct the purchase on a sole source basis
            unless the need to do so is justified in writing and approved in
            accordance with section 2304 of title 10, United States Code, or
            section 303 of the Federal Property and Administrative Services
            Act of 1949 (41 U.S.C. 253), as applicable; and
                ``(3) shall include in the contract file a written
            description of the procedures used in awarding the contract and
            the number of offers received.''.

        (d) Simplified Notice.--(1) Section 18 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 416) is amended--
                (A) in subsection (a)(6), by inserting before ``submission''
            the following: ``issuance of solicitations and the''; and
                (B) in subsection (b)(6), by striking out ``threshold--''
            and inserting in lieu thereof ``threshold, or a contract for the
            procurement of commercial items using special simplified
            procedures--''.

        (e) <<NOTE: 10 USC 2304 note.>>  Effective Date.--The authority to
    issue solicitations for purchases of commercial items in excess of the
    simplified acquisition threshold pursuant to the special simplified
    procedures authorized by section 2304(g)(1) of title 10, United States
    Code, section 303(g)(1) of the Federal Property and Administrative
    Services Act of 1949, and section 31(a) of the Office of Federal
    Procurement Policy Act, as amended by this section, shall expire three
    years after the date on which such amendments take effect pursuant to
    section 4401(b). Contracts may be awarded pursuant to solicitations that
    have been issued before such authority expires, notwithstanding the
    expiration of such authority.
    SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO
                              COMMERCIALLY AVAILABLE OFF-THE-SHELF
                              ITEMS.

        (a) Laws Listed in the FAR.--The Office of Federal Procurement
    Policy Act (41 U.S.C. 401 et seq.) is amended by adding at the end the
    following:
    ``SEC. 35. <<NOTE: 41 USC 431.>>  COMMERCIALLY AVAILABLE OFF-THE-
                            SHELF ITEM ACQUISITIONS: LISTS OF
                            INAPPLICABLE LAWS IN FEDERAL ACQUISITION
                            REGULATION.

        ``(a) Lists of Inapplicable Provisions of Law.--(1) The Federal
    Acquisition Regulation shall include a list of provisions of law that
    are inapplicable to contracts for the procurement of commercially
    available off-the-shelf items.
        ``(2) A provision of law that, pursuant to paragraph (3), is
    properly included on a list referred to in paragraph (1) may not be
    construed as being applicable to contracts referred to in paragraph (1).
    Nothing in this section shall be construed to render

    [[Page 110 STAT. 655]]

    inapplicable to such contracts any provision of law that is not included
    on such list.
        ``(3) A provision of law described in subsection (b) shall be
    included on the list of inapplicable provisions of law required by
    paragraph (1) unless the Administrator for Federal Procurement Policy
    makes a written determination that it would not be in the best interest
    of the United States to exempt such contracts from the applicability of
    that provision of law. Nothing in this section shall be construed as
    modifying or superseding, or as being intended to impair or restrict
    authorities or responsibilities under--
                ``(A) section 15 of the Small Business Act (15 U.S.C. 644);
            or
                ``(B) bid protest procedures developed under the authority
            of subchapter V of chapter 35 of title 31, United States Code;
            subsections (e) and (f) of section 2305 of title 10, United
            States Code; or subsections (h) and (i) of section 303B of the
            Federal Property and Administrative Services Act of 1949 (41
            U.S.C. 253b).

        ``(b) Covered Law.--Except as provided in subsection (a)(3), the
    list referred to in subsection (a)(1) shall include each provision of
    law that, as determined by the Administrator, imposes on persons who
    have been awarded contracts by the Federal Government for the
    procurement of commercially available off-the-shelf items Government-
    unique policies, procedures, requirements, or restrictions for the
    procurement of property or services, except the following:
                ``(1) A provision of law that provides for criminal or civil
            penalties.
                ``(2) A provision of law that specifically refers to this
            section and provides that, notwithstanding this section, such
            provision of law shall be applicable to contracts for the
            procurement of commercial off-the-shelf items.

        ``(c) Definition.--(1) As used in this section, the term
    `commercially available off-the-shelf item' means, except as provided in
    paragraph (2), an item that--
                ``(A) is a commercial item (as described in section
            4(12)(A));
                ``(B) is sold in substantial quantities in the commercial
            marketplace; and
                ``(C) is offered to the Government, without modification, in
            the same form in which it is sold in the commercial marketplace.

        ``(2) The term `commercially available off-the-shelf item' does not
    include bulk cargo, as defined in section 3 of the Shipping Act of 1984
    (46 U.S.C. App. 1702), such as agricultural products and petroleum
    products.''.
        (b) Clerical Amendment.--The table of contents in section 1(b) of
    such Act is amended by inserting after the item relating to section 34
    the following:

    ``Sec. 35. Commercially available off-the-shelf item acquisitions: lists
               of inapplicable laws in Federal Acquisition Regulation.''.

    SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION.

        Section 4(12)(F) of the Office of Federal Procurement Policy Act (41
    U.S.C. 403(12)(F)) is amended by inserting ``or market'' after
    ``catalog''.

    [[Page 110 STAT. 656]]

    SEC. 4205. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO
                              CONTRACTS AND SUBCONTRACTS FOR
                              COMMERCIAL ITEMS.

        Paragraph (2)(B) of section 26(f) of the Office of Federal
    Procurement Policy Act (41 U.S.C. 422(f)) is amended--
                (1) by striking out clause (i) and inserting in lieu thereof
            the following:
                ``(i) Contracts or subcontracts for the acquisition of
            commercial items.''; and
                (2) by striking out clause (iii).

                    TITLE XLIII--ADDITIONAL REFORM PROVISIONS

              Subtitle A--Additional Acquisition Reform Provisions

    SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

        (a) Elimination of Certain Statutory Certification Requirements.--
    (1) Section 2410b of title 10, United States Code, is amended in
    paragraph (2) by striking out ``certification and''.
        (2) Section 1352(b)(2) of title 31, United States Code, is amended--
                (A) by striking out subparagraph (C); and
                (B) by inserting ``and'' after the semicolon at the end of
            subparagraph (A).

        (3) Section 5152 of the Drug-Free Workplace Act of 1988 (41 U.S.C.
    701) is amended--
                (A) in subsection (a)(1), by striking out ``has certified to
            the contracting agency that it will'' and inserting in lieu
            thereof ``agrees to'';
                (B) in subsection (a)(2), by striking out ``contract
            includes a certification by the individual'' and inserting in
            lieu thereof ``individual agrees''; and
                (C) in subsection (b)(1)--
                        (i) by striking out subparagraph (A);
                        (ii) by redesignating subparagraph (B) as
                    subparagraph (A) and in that subparagraph by striking
                    out ``such certification by failing to carry out''; and
                        (iii) by redesignating subparagraph (C) as
                    subparagraph (B).

        (b) Elimination of Certain Regulatory Certification Requirements.--
                (1) <<NOTE: Public comment. 41 USC 425 note.>>  Current
            certification requirements.--(A) Not later than 210 days after
            the date of the enactment of this Act, the Administrator for
            Federal Procurement Policy shall issue for public comment a
            proposal to amend the Federal Acquisition Regulation to remove
            from the Federal Acquisition Regulation certification
            requirements for contractors and offerors that are not
            specifically imposed by statute. The Administrator may omit such
            a certification requirement from the proposal only if--
                        (i) the Federal Acquisition Regulatory Council
                    provides the Administrator with a written justification
                    for the

    [[Page 110 STAT. 657]]

                    requirement and a determination that there is no less
                    burdensome means for administering and enforcing the
                    particular regulation that contains the certification
                    requirement; and
                        (ii) the Administrator approves in writing the
                    retention of the certification requirement.
                (B)(i) <<NOTE: Public comment.>>  Not later than 210 days
            after the date of the enactment of this Act, the head of each
            executive agency that has agency procurement regulations
            containing one or more certification requirements for
            contractors and offerors that are not specifically imposed by
            statute shall issue for public comment a proposal to amend the
            regulations to remove the certification requirements. The head
            of the executive agency may omit such a certification
            requirement from the proposal only if--
                        (I) the senior procurement executive for the
                    executive agency provides the head of the executive
                    agency with a written justification for the requirement
                    and a determination that there is no less burdensome
                    means for administering and enforcing the particular
                    regulation that contains the certification requirement;
                    and
                        (II) the head of the executive agency approves in
                    writing the retention of such certification requirement.
                (ii) For purposes of clause (i), the term ``head of the
            executive agency'' with respect to a military department means
            the Secretary of Defense.
                (2) Future certification requirements.--(A) Section 29 of
            the Office of Federal Procurement Policy Act (41 U.S.C. 425) is
            amended--
                        (i) by amending the heading to read as follows:

    ``SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.'';

                        (ii) by inserting ``(a) Nonstandard Contract
                    Clauses.--'' before ``The Federal Acquisition''; and
                        (iii) by adding at the end the following new
                    subsection:

        ``(c) Prohibition on Certification Requirements.--(1) A requirement
    for a certification by a contractor or offeror may not be included in
    the Federal Acquisition Regulation unless--
                ``(A) the certification requirement is specifically imposed
            by statute; or
                ``(B) written justification for such certification
            requirement is provided to the Administrator for Federal
            Procurement Policy by the Federal Acquisition Regulatory
            Council, and the Administrator approves in writing the inclusion
            of such certification requirement.

        ``(2)(A) A requirement for a certification by a contractor or
    offeror may not be included in a procurement regulation of an executive
    agency unless--
                ``(i) the certification requirement is specifically imposed
            by statute; or
                ``(ii) written justification for such certification
            requirement is provided to the head of the executive agency by
            the senior procurement executive of the agency, and the head of
            the executive agency approves in writing the inclusion of such
            certification requirement.

        ``(B) For purposes of subparagraph (A), the term `head of the
    executive agency' with respect to a military department means the
    Secretary of Defense.''.

    [[Page 110 STAT. 658]]

                (B) The item relating to section 29 in the table of contents
            for the Office of Federal Procurement Policy Act (contained in
            section 1(b)) (41 U.S.C. 401 note) is amended to read as
            follows:

    ``Sec. 29. Contract clauses and certifications.''.

        (c) Policy of Congress.--Section 29 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 425) is further amended by adding
    after subsection (a) the following new subsection:
        ``(b) Construction of Certification Requirements.--A provision of
    law may not be construed as requiring a certification by a contractor or
    offeror in a procurement made or to be made by the Federal Government
    unless that provision of law specifically provides that such a
    certification shall be required.''.

    SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY.

        (a) Commencement and Expiration of Authority To Conduct Certain
    Tests of Procurement Procedures.--Subsection (j) of section 5061 of the
    Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note; 108
    Stat. 3355) is amended to read as follows:
        ``(j) Commencement and Expiration of Authority.--The authority to
    conduct a test under subsection (a) in an agency and to award contracts
    under such a test shall take effect on January 1, 1997, and shall expire
    on January 1, 2001. A contract entered into before such authority
    expires in an
    agency pursuant to a test shall remain in effect, in accordance with the
    terms of the contract, the notwithstanding of expiration the authority
    to conduct the test under this section.''.

        (b) Use of Simplified Acquisition Procedures.--Subsection (e) of
    section 31 of the Office of Federal Procurement Policy Act (41 U.S.C.
    427) is amended--
                (1) by striking out ``Acquisition Procedures.--'' and all
            that follows through ``(B) The simplified acquisition'' in
            paragraph (2)(B) and inserting in lieu thereof ``Acquisition
            Procedures.--The simplified acquisition''; and
                (2) by striking out ``pursuant to this section'' in the
            remaining text and inserting in lieu thereof ``pursuant to
            section 2304(g)(1)(A) of title 10, United States Code, section
            303(g)(1)(A) of the Federal Property and Administrative Services
            Act of 1949 (41 U.S.C. 253(g)(1)(A)), and subsection (a)(1) of
            this section''.

    SEC. 4303. INTERNATIONAL COMPETITIVENESS.

        (a) Additional Authority to Waive Research, Development, and
    Production Costs.--Subject to subsection (b), section 21(e)(2) of the
    Arms Export Control Act (22 U.S.C. 2761(e)(2)) is amended--
                (1) by inserting ``(A)'' after ``(2)''; and
                (2) by adding at the end the following new subparagraphs:

        ``(B) The President may waive the charge or charges which would
    otherwise be considered appropriate under paragraph (1)(B) for a
    particular sale if the President determines that--
                ``(i) imposition of the charge or charges likely would
            result in the loss of the sale; or
                ``(ii) in the case of a sale of major defense equipment that
            is also being procured for the use of the Armed Forces, the
            waiver of the charge or charges would (through a resulting

    [[Page 110 STAT. 659]]

            increase in the total quantity of the equipment purchased from
            the source of the equipment that causes a reduction in the unit
            cost of the equipment) result in a savings to the United States
            on the cost of the equipment procured for the use of the Armed
            Forces that substantially offsets the revenue foregone by reason
            of the waiver of the charge or charges.

        ``(C) The President may waive, for particular sales of major defense
    equipment, any increase in a charge or charges previously considered
    appropriate under paragraph (1)(B) if the increase results from a
    correction of an estimate (reasonable when made) of the production
    quantity base that was used for calculating the charge or charges for
    purposes of such paragraph.''.
        (b) <<NOTE: 22 USC 2761 note.>>  Conditions.--Subsection (a) shall
    be effective only if--
                (1) the President, in the budget of the President for fiscal
            year 1997, proposes legislation that if enacted would be
            qualifying offsetting legislation; and
                (2) there is enacted qualifying offsetting legislation.

        (c) <<NOTE: 22 USC 2761 note.>>  Effective Date.--If the conditions
    in subsection (b) are met, then the amendments made by subsection (a)
    shall take effect on the date of the enactment of qualifying offsetting
    legislation.

        (d) <<NOTE: 22 USC 2761 note.>>  Definitions.--For purposes of this
    section:
                (1) The term ``qualifying offsetting legislation'' means
            legislation that includes provisions that--
                        (A) offset fully the estimated revenues lost as a
                    result of the amendments made by subsection (a) for each
                    of the fiscal years 1997 through 2005;
                        (B) expressly state that they are enacted for the
                    purpose of the offset described in subparagraph (A); and
                        (C) are included in full on the PayGo scorecard.
                (2) The term ``PayGo scorecard'' means the estimates that
            are made by the Director of the Congressional Budget Office and
            the Director of the Office of Management and Budget under
            section 252(d) of the Balanced Budget and Emergency Deficit
            Control Act of 1985.

    SEC. 4304. PROCUREMENT INTEGRITY.

        (a) Amendment of Procurement Integrity Provision.--Section 27 of the
    Office of Federal Procurement Policy Act (41 U.S.C. 423) is amended to
    read as follows:
    ``SEC. 27. <<NOTE: 41 USC 423.>>  RESTRICTIONS ON DISCLOSING AND
                            OBTAINING CONTRACTOR BID OR PROPOSAL
                            INFORMATION OR SOURCE SELECTION
                            INFORMATION.

        ``(a) Prohibition on Disclosing Procurement Information.--(1) A
    person described in paragraph (2) shall not, other than as provided by
    law, knowingly disclose contractor bid or proposal information or source
    selection information before the award of a Federal agency procurement
    contract to which the information relates.
        ``(2) Paragraph (1) applies to any person who--
                ``(A) is a present or former official of the United States,
            or a person who is acting or has acted for or on behalf of, or
            who is advising or has advised the United States with respect
            to, a Federal agency procurement; and
                ``(B) by virtue of that office, employment, or relationship
            has or had access to contractor bid or proposal information or
            source selection information.

    [[Page 110 STAT. 660]]

        ``(b) Prohibition on Obtaining Procurement Information.--A person
    shall not, other than as provided by law, knowingly obtain contractor
    bid or proposal information or source selection information before the
    award of a Federal agency procurement contract to which the information
    relates.
        ``(c) Actions Required of Procurement Officers When Contacted by
    Offerors Regarding Non-Federal Employment.--(1) If an agency official
    who is participating personally and substantially in a Federal agency
    procurement for a contract in excess of the simplified acquisition
    threshold contacts or is contacted by a person who is a bidder or
    offeror in that Federal agency procurement regarding possible non-
    Federal employment for that official, the official shall--
                ``(A) <<NOTE: Reports.>>  promptly report the contact in
            writing to the official's supervisor and to the designated
            agency ethics official (or designee) of the agency in which the
            official is employed; and
                ``(B)(i) reject the possibility of non-Federal employment;
            or
                ``(ii) disqualify himself or herself from further personal
            and substantial participation in that Federal agency procurement
            until such time as the agency has authorized the official to
            resume participation in such procurement, in accordance with the
            requirements of section 208 of title 18, United States Code, and
            applicable agency regulations on the grounds that--
                        ``(I) the person is no longer a bidder or offeror in
                    that Federal agency procurement; or
                        ``(II) all discussions with the bidder or offeror
                    regarding possible non-Federal employment have
                    terminated without an agreement or arrangement for
                    employment.

        ``(2) Each report required by this subsection shall be retained by
    the agency for not less than two years following the submission of the
    report. <<NOTE: Public information.>>  All such reports shall be made
    available to the public upon request, except that any part of a report
    that is exempt from the disclosure requirements of section 552 of title
    5, United States Code, under subsection (b)(1) of such section may be
    withheld from disclosure to the public.

        ``(3) An official who knowingly fails to comply with the
    requirements of this subsection shall be subject to the penalties and
    administrative actions set forth in subsection (e).
        ``(4) A bidder or offeror who engages in employment discussions with
    an official who is subject to the restrictions of this subsection,
    knowing that the official has not complied with subparagraph (A) or (B)
    of paragraph (1), shall be subject to the penalties and administrative
    actions set forth in subsection (e).
        ``(d) Prohibition on Former Official's Acceptance of Compensation
    From Contractor.--(1) A former official of a Federal agency may not
    accept compensation from a contractor as an employee, officer, director,
    or consultant of the contractor within a period of one year after such
    former official--
                ``(A) served, at the time of selection of the contractor or
            the award of a contract to that contractor, as the procuring
            contracting officer, the source selection authority, a member of
            the source selection evaluation board, or the chief of a
            financial or technical evaluation team in a procurement in which
            that contractor was selected for award of a contract in excess
            of $10,000,000;

    [[Page 110 STAT. 661]]

                ``(B) served as the program manager, deputy program manager,
            or administrative contracting officer for a contract in excess
            of $10,000,000 awarded to that contractor; or
                ``(C) personally made for the Federal agency--
                        ``(i) a decision to award a contract, subcontract,
                    modification of a contract or subcontract, or a task
                    order or delivery order in excess of $10,000,000 to that
                    contractor;
                        ``(ii) a decision to establish overhead or other
                    rates applicable to a contract or contracts for that
                    contractor that are valued in excess of $10,000,000;
                        ``(iii) a decision to approve issuance of a contract
                    payment or payments in excess of $10,000,000 to that
                    contractor; or
                        ``(iv) a decision to pay or settle a claim in excess
                    of $10,000,000 with that contractor.

        ``(2) Nothing in paragraph (1) may be construed to prohibit a former
    official of a Federal agency from accepting compensation from any
    division or affiliate of a contractor that does not produce the same or
    similar products or services as the entity of the contractor that is
    responsible for the contract referred to in subparagraph (A), (B), or
    (C) of such paragraph.
        ``(3) A former official who knowingly accepts compensation in
    violation of this subsection shall be subject to penalties and
    administrative actions as set forth in subsection (e).
        ``(4) A contractor who provides compensation to a former official
    knowing that such compensation is accepted by the former official in
    violation of this subsection shall be subject to penalties and
    administrative actions as set forth in subsection (e).
        ``(5) Regulations implementing this subsection shall include
    procedures for an official or former official of a Federal agency to
    request advice from the appropriate designated agency ethics official
    regarding whether the official or former official is or would be
    precluded by this subsection from accepting compensation from a
    particular contractor.
        ``(e) Penalties and Administrative Actions.--
                ``(1) Criminal penalties.--Whoever engages in conduct
            constituting a violation of subsection (a) or (b) for the
            purpose of either--
                        ``(A) exchanging the information covered by such
                    subsection for anything of value, or
                        ``(B) obtaining or giving anyone a competitive
                    advantage in the award of a Federal agency procurement
                    contract,
            shall be imprisoned for not more than 5 years or fined as
            provided under title 18, United States Code, or both.
                ``(2) Civil penalties.--The Attorney General may bring a
            civil action in an appropriate United States district court
            against any person who engages in conduct constituting a
            violation of subsection (a), (b), (c), or (d). Upon proof of
            such conduct by a preponderance of the evidence, the person is
            subject to a civil penalty. An individual who engages in such
            conduct is subject to a civil penalty of not more than $50,000
            for each violation plus twice the amount of compensation which
            the individual received or offered for the prohibited conduct.
            An organization that engages in such conduct is subject to a
            civil penalty of not more than $500,000 for each violation

    [[Page 110 STAT. 662]]

            plus twice the amount of compensation which the organization
            received or offered for the prohibited conduct.
                ``(3) Administrative actions.--(A) If a Federal agency
            receives information that a contractor or a person has engaged
            in conduct constituting a violation of subsection (a), (b), (c),
            or (d), the Federal agency shall consider taking one or more of
            the following actions, as appropriate:
                        ``(i) Cancellation of the Federal agency
                    procurement, if a contract has not yet been awarded.
                        ``(ii) Rescission of a contract with respect to
                    which--
                              ``(I) the contractor or someone acting for the
                          contractor has been convicted for an offense
                          punishable under paragraph (1), or
                              ``(II) the head of the agency that awarded the
                          contract has determined, based upon a
                          preponderance of the evidence, that the contractor
                          or someone acting for the contractor has engaged
                          in conduct constituting such an offense.
                        ``(iii) Initiation of suspension or debarment
                    proceedings for the protection of the Government in
                    accordance with procedures in the Federal Acquisition
                    Regulation.
                        ``(iv) Initiation of adverse personnel action,
                    pursuant to the procedures in chapter 75 of title 5,
                    United States Code, or other applicable law or
                    regulation.
                ``(B) If a Federal agency rescinds a contract pursuant to
            subparagraph (A)(ii), the United States is entitled to recover,
            in addition to any penalty prescribed by law, the amount
            expended under the contract.
                ``(C) For purposes of any suspension or debarment
            proceedings initiated pursuant to subparagraph (A)(iii),
            engaging in conduct constituting an offense under subsection
            (a), (b), (c), or (d) affects the present responsibility of a
            Government contractor or subcontractor.

        ``(f) Definitions.--As used in this section:
                ``(1) The term `contractor bid or proposal information'
            means any of the following information submitted to a Federal
            agency as part of or in connection with a bid or proposal to
            enter into a Federal agency procurement contract, if that
            information has not been previously made available to the public
            or disclosed publicly:
                        ``(A) Cost or pricing data (as defined by section
                    2306a(h) of title 10, United States Code, with respect
                    to procurements subject to that section, and section
                    304A(h) of the Federal Property and Administrative
                    Services Act of 1949 (41 U.S.C. 254b(h)), with respect
                    to procurements subject to that section).
                        ``(B) Indirect costs and direct labor rates.
                        ``(C) Proprietary information about manufacturing
                    processes, operations, or techniques marked by the
                    contractor in accordance with applicable law or
                    regulation.
                        ``(D) Information marked by the contractor as
                    `contractor bid or proposal information', in accordance
                    with applicable law or regulation.
                ``(2) The term `source selection information' means any of
            the following information prepared for use by a Federal agency
            for the purpose of evaluating a bid or proposal to enter into a
            Federal agency procurement contract, if that information

    [[Page 110 STAT. 663]]

            has not been previously made available to the public or
            disclosed publicly:
                        ``(A) Bid prices submitted in response to a Federal
                    agency solicitation for sealed bids, or lists of those
                    bid prices before public bid opening.
                        ``(B) Proposed costs or prices submitted in response
                    to a Federal agency solicitation, or lists of those
                    proposed costs or prices.
                        ``(C) Source selection plans.
                        ``(D) Technical evaluation plans.
                        ``(E) Technical evaluations of proposals.
                        ``(F) Cost or price evaluations of proposals.
                        ``(G) Competitive range determinations that identify
                    proposals that have a reasonable chance of being
                    selected for award of a contract.
                        ``(H) Rankings of bids, proposals, or competitors.
                        ``(I) The reports and evaluations of source
                    selection panels, boards, or advisory councils.
                        ``(J) Other information marked as `source selection
                    information' based on a case-by-case determination by
                    the head of the agency, his designee, or the contracting
                    officer that its disclosure would jeopardize the
                    integrity or successful completion of the Federal agency
                    procurement to which the information relates.
                ``(3) The term `Federal agency' has the meaning provided
            such term in section 3 of the Federal Property and
            Administrative Services Act of 1949 (40 U.S.C. 472).
                ``(4) The term `Federal agency procurement' means the
            acquisition (by using competitive procedures and awarding a
            contract) of goods or services (including construction) from
            non-Federal sources by a Federal agency using appropriated
            funds.
                ``(5) The term `contracting officer' means a person who, by
            appointment in accordance with applicable regulations, has the
            authority to enter into a Federal agency procurement contract on
            behalf of the Government and to make determinations and findings
            with respect to such a contract.
                ``(6) The term `protest' means a written objection by an
            interested party to the award or proposed award of a Federal
            agency procurement contract, pursuant to subchapter V of chapter
            35 of title 31, United States Code.
                ``(7) The term `official' means the following:
                        ``(A) An officer, as defined in section 2104 of
                    title 5, United States Code.
                        ``(B) An employee, as defined in section 2105 of
                    title 5, United States Code.
                        ``(C) A member of the uniformed services, as defined
                    in section 2101(3) of title 5, United States Code.

        ``(g) Limitation on Protests.--No person may file a protest against
    the award or proposed award of a Federal agency procurement contract
    alleging a violation of subsection (a), (b), (c), or (d), nor may the
    Comptroller General of the United States consider such an allegation in
    deciding a protest, unless that person reported to the Federal agency
    responsible for the procurement, no later than 14 days after the person
    first discovered the possible violation, the information that the person
    believed constitutes evidence of the offense.
        ``(h) Savings Provisions.--This section does not--

    [[Page 110 STAT. 664]]

                ``(1) restrict the disclosure of information to, or its
            receipt by, any person or class of persons authorized, in
            accordance with applicable agency regulations or procedures, to
            receive that information;
                ``(2) restrict a contractor from disclosing its own bid or
            proposal information or the recipient from receiving that
            information;
                ``(3) restrict the disclosure or receipt of information
            relating to a Federal agency procurement after it has been
            canceled by the Federal agency before contract award unless the
            Federal agency plans to resume the procurement;
                ``(4) prohibit individual meetings between a Federal agency
            official and an offeror or potential offeror for, or a recipient
            of, a contract or subcontract under a Federal agency
            procurement, provided that unauthorized disclosure or receipt of
            contractor bid or proposal information or source selection
            information does not occur;
                ``(5) authorize the withholding of information from, nor
            restrict its receipt by, Congress, a committee or subcommittee
            of Congress, the Comptroller General, a Federal agency, or an
            inspector general of a Federal agency;
                ``(6) authorize the withholding of information from, nor
            restrict its receipt by, the Comptroller General of the United
            States in the course of a protest against the award or proposed
            award of a Federal agency procurement contract; or
                ``(7) limit the applicability of any requirements,
            sanctions, contract penalties, and remedies established under
            any other law or regulation.''.

        (b) Repeals.--The following provisions of law are repealed:
                (1) Sections 2397, 2397a, 2397b, and 2397c of title 10,
            United States Code.
                (2) Section 33 of the Federal Energy Administration Act of
            1974 (15 U.S.C. 789).
                (3) Section 281 of title 18, United States Code.
                (4) Subsection (c) of section 32 of the Office of Federal
            Procurement Policy Act (41 U.S.C. 428).
                (5) The first section 19 of the Federal Nonnuclear Energy
            Research and Development Act of 1974 (42 U.S.C. 5918).
                (6) Part A of title VI of the Department of Energy
            Organization Act and its catchline (42 U.S.C. 7211, 7212, and
            7218).
                (7) Section 308 of the Energy Research and Development
            Administration Appropriation Authorization Act for Fiscal Year
            1977 (42 U.S.C. 5816a).
                (8) Section 522 of the Energy Policy and Conservation Act
            (42 U.S.C. 6392).

        (c) Clerical Amendments.--
                (1) The table of sections at the beginning of chapter 141 of
            title 10, United States Code, is amended by striking out the
            items relating to sections 2397, 2397a, 2397b, and 2397c.
                (2) The table of sections at the beginning of chapter 15 of
            title 18, United States Code, is amended by striking out the
            item relating to section 281.
                (3) Section 32 of the Office of Federal Procurement Policy
            Act (41 U.S.C. 428) is amended by redesignating subsections (d),
            (e), (f), and (g) as subsections (c), (d), (e), and (f),
            respectively.

    [[Page 110 STAT. 665]]

                (4) The table of contents for the Department of Energy
            Organization Act is amended by striking out the items relating
            to part A of title VI including sections 601 through 603.
                (5) The table of contents for the Energy Policy and
            Conservation Act is amended by striking out the item relating to
            section 522.

    SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS.

        (a) Purpose of Office of Federal Procurement Policy.--
                (1) Revised statement of purpose.--Section 5(a) of the
            Office of Federal Procurement Policy Act (41 U.S.C. 404) is
            amended to read as follows:

        ``(a) There is in the Office of Management and Budget an Office of
    Federal Procurement Policy (hereinafter referred to as the `Office') to
    provide overall direction of Government-wide procurement policies,
    regulations, procedures, and forms for executive agencies and to promote
    economy, efficiency, and effectiveness in the procurement of property
    and services by the executive branch of the Federal Government.''.
                (2) Repeal of findings, policies, and purposes.--Sections 2
            and 3 of such Act (41 U.S.C. 401 and 402) are repealed.

        (b) Repeal of Report Requirement.--Section 8 of the Office of
    Federal Procurement Policy Act (41 U.S.C. 407) is repealed.
        (c) Obsolete Provisions.--
                (1) Relationship to former regulations.--Section 10 of the
            Office of Federal Procurement Policy Act (41 U.S.C. 409) is
            repealed.
                (2) Authorization of appropriations.--Section 11 of such Act
            (41 U.S.C. 410) is amended to read as follows:

    ``SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

        ``There is authorized to be appropriated for the Office of Federal
    Procurement Policy each fiscal year such sums as may be necessary for
    carrying out the responsibilities of that office for such fiscal
    year.''.
        (d) Clerical Amendments.--The table of contents for the Office of
    Federal Procurement Policy Act (contained in section 1(b)) is amended by
    striking out the items relating to sections 2, 3, 8, and 10.

    SEC. 4306. VALUE ENGINEERING FOR FEDERAL AGENCIES.

        (a) Use of Value Engineering.--The Office of Federal Procurement
    Policy Act (41 U.S.C. 401 et seq.), as amended by section 4203, is
    further amended by adding at the end the following new section:

    ``SEC. 36. <<NOTE: 41 USC 432.>>  VALUE ENGINEERING.

        ``(a) In General.--Each executive agency shall establish and
    maintain cost-effective value engineering procedures and processes.
        ``(b) Definition.--As used in this section, the term `value
    engineering' means an analysis of the functions of a program, project,
    system, product, item of equipment, building, facility, service, or
    supply of an executive agency, performed by qualified agency or
    contractor personnel, directed at improving performance, reliability,
    quality, safety, and life cycle costs.''.

    [[Page 110 STAT. 666]]

        (b) Clerical Amendment.--The table of contents for such Act,
    contained in section 1(b), is amended by adding at the end the following
    new item:

    ``Sec. 36. Value engineering.''.

    SEC. 4307. ACQUISITION WORKFORCE.

        (a) Acquisition Workforce.--(1) The Office of Federal Procurement
    Policy Act (41 U.S.C. 401 et seq.), as amended by section 4306, is
    further amended by adding at the end the following new section:

    ``SEC. 37. <<NOTE: 41 USC 433.>>  ACQUISITION WORKFORCE.

        ``(a) Applicability.--This section does not apply to an executive
    agency that is subject to chapter 87 of title 10, United States Code.
        ``(b) Management Policies.--
                ``(1) Policies and procedures.--The head of each executive
            agency, after consultation with the Administrator for Federal
            Procurement Policy, shall establish policies and procedures for
            the effective management (including accession, education,
            training, career development, and performance incentives) of the
            acquisition workforce of the agency. The development of
            acquisition workforce policies under this section shall be
            carried out consistent with the merit system principles set
            forth in section 2301(b) of title 5, United States Code.
                ``(2) Uniform implementation.--The head of each executive
            agency shall ensure that, to the maximum extent practicable,
            acquisition workforce policies and procedures established are
            uniform in their implementation throughout the agency.
                ``(3) Government-wide policies and evaluation.--The
            Administrator shall issue policies to promote uniform
            implementation of this section by executive agencies, with due
            regard for differences in program requirements among agencies
            that may be appropriate and warranted in view of the agency
            mission. The Administrator shall coordinate with the Deputy
            Director for Management of the Office of Management and Budget
            to ensure that such policies are consistent with the policies
            and procedures established and enhanced system of incentives
            provided pursuant to section 5051(c) of the Federal Acquisition
            Streamlining Act of 1994 (41 U.S.C. 263 note). The Administrator
            shall evaluate the implementation of the provisions of this
            section by executive agencies.

        ``(c) Senior Procurement Executive Authorities and
    Responsibilities.--Subject to the authority, direction, and control of
    the head of an executive agency, the senior procurement executive of the
    agency shall carry out all powers, functions, and duties of the head of
    the agency with respect to implementation of this section. The senior
    procurement executive shall ensure that the policies of the head of the
    executive agency established in accordance with this section are
    implemented throughout the agency.
        ``(d) Management Information Systems.--The Administrator shall
    ensure that the heads of executive agencies collect and maintain
    standardized information on the acquisition workforce related to
    implementation of this section. To the maximum extent practicable, such
    data requirements shall conform to standards estab

    [[Page 110 STAT. 667]]

    lished by the Office of Personnel Management for the Central Personnel
    Data File.

        ``(e) Applicability to Acquisition Workforce.--The programs
    established by this section shall apply to the acquisition workforce of
    each executive agency. For purposes of this section, the acquisition
    workforce of an agency consists of all employees serving in acquisition
    positions listed in subsection (g)(1)(A).

        ``(f) Career Development.--
                ``(1) Career paths.--The head of each executive agency shall
            ensure that appropriate career paths for personnel who desire to
            pursue careers in acquisition are identified in terms of the
            education, training, experience, and assignments necessary for
            career progression to the most senior acquisition positions. The
            head of each executive agency shall make information available
            on such career paths.
                ``(2) Critical duties and tasks.--For each career path, the
            head of each executive agency shall identify the critical
            acquisition-related duties and tasks in which, at minimum,
            employees of the agency in the career path shall be competent to
            perform at full performance grade levels. For this purpose, the
            head of the executive agency shall provide appropriate coverage
            of the critical duties and tasks identified by the Director of
            the Federal Acquisition Institute.
                ``(3) Mandatory training and education.--For each career
            path, the head of each executive agency shall establish
            requirements for the completion of course work and related on-
            the-job training in the critical acquisition-related duties and
            tasks of the career path. The head of each executive agency
            shall also encourage employees to maintain the currency of their
            acquisition knowledge and generally enhance their knowledge of
            related acquisition management disciplines through academic
            programs and other self-developmental activities.
                ``(4) Performance incentives.--The head of each executive
            agency shall provide for an enhanced system of incentives for
            the encouragement of excellence in the acquisition workforce
            which rewards performance of employees that contribute to
            achieving the agency's performance goals. The system of
            incentives shall include provisions that--
                        ``(A) relate pay to performance (including the
                    extent to which the performance of personnel in such
                    workforce contributes to achieving the cost goals,
                    schedule goals, and performance goals established for
                    acquisition programs pursuant to section 313(b) of the
                    Federal Property and Administrative Services Act of 1949
                    (41 U.S.C. 263(b))); and
                        ``(B) provide for consideration, in personnel
                    evaluations and promotion decisions, of the extent to
                    which the performance of personnel in such workforce
                    contributes to achieving such cost goals, schedule
                    goals, and performance goals.

        ``(g) Qualification Requirements.--
                ``(1) In general.--(A) Subject to paragraph (2), the
            Administrator shall establish qualification requirements,
            including education requirements, for the following positions:
                        ``(i) Entry-level positions in the General Schedule
                    Contracting series (GS-1102).

    [[Page 110 STAT. 668]]

                        ``(ii) Senior positions in the General Schedule
                    Contracting series (GS-1102).
                        ``(iii) All positions in the General Schedule
                    Purchasing series (GS-1105).
                        ``(iv) Positions in other General Schedule series in
                    which significant acquisition-related functions are
                    performed.
                ``(B) Subject to paragraph (2), the Administrator shall
            prescribe the manner and extent to which such qualification
            requirements shall apply to any person serving in a position
            described in subparagraph (A) at the time such requirements are
            established.
                ``(2) Relationship to requirements applicable to defense
            acquisition workforce.--The Administrator shall establish
            qualification requirements and make prescriptions under
            paragraph (1) that are comparable to those established for the
            same or equivalent positions pursuant to chapter 87 of title 10,
            United States Code, with appropriate modifications.
                ``(3) Approval of requirements.--The Administrator shall
            submit any requirement established or prescription made under
            paragraph (1) to the Director of the Office of Personnel
            Management for approval. If the Director does not disapprove a
            requirement or prescription within 30 days after the date on
            which the Director receives it, the requirement or prescription
            is deemed to be approved by the Director.

        ``(h) Education and Training.--
                ``(1) Funding levels.--(A) The head of an executive agency
            shall set forth separately the funding levels requested for
            education and training of the acquisition workforce in the
            budget justification documents submitted in support of the
            President's budget submitted to Congress under section 1105 of
            title 31, United States Code.
                ``(B) Funds appropriated for education and training under
            this section may not be obligated for any other purpose.
                ``(2) Tuition assistance.--The head of an executive agency
            may provide tuition reimbursement in education (including a
            full-time course of study leading to a degree) in accordance
            with section 4107 of title 5, United States Code, for personnel
            serving in acquisition positions in the agency.''.

        (2) The table of contents for such Act, contained in section 1(b),
    is amended by adding at the end the following new item:

    ``Sec. 37. Acquisition workforce.''.

        (b) Additional Amendments.--Section 6(d) of the Office of Federal
    Procurement Policy Act (41 U.S.C. 405), is amended--
                (1) by redesignating paragraphs (6), (7), (8), (9), (10),
            (11), and (12) (as transferred by section 4321(h)(1)) as
            paragraphs (7), (8), (9), (10), (11), (12), and (13),
            respectively;
                (2) in paragraph (5)--
                        (A) in subparagraph (A), by striking out
                    ``Government-wide career management programs for a
                    professional procurement work force'' and inserting in
                    lieu thereof ``the development of a professional
                    acquisition workforce Government-wide''; and
                        (B) in subparagraph (B)--
                              (i) by striking out ``procurement by the'' and
                          inserting in lieu thereof ``acquisition by the'';

    [[Page 110 STAT. 669]]

                              (ii) by striking out ``and'' at the end of the
                          subparagraph; and
                              (iii) by striking out subparagraph (C) and
                          inserting in lieu thereof the following:
                        ``(C) collect data and analyze acquisition workforce
                    data from the Office of Personnel Management, the heads
                    of executive agencies, and, through periodic surveys,
                    from individual employees;
                        ``(D) periodically analyze acquisition career fields
                    to identify critical competencies, duties, tasks, and
                    related academic prerequisites, skills, and knowledge;
                        ``(E) coordinate and assist agencies in identifying
                    and recruiting highly qualified candidates for
                    acquisition fields;
                        ``(F) develop instructional materials for
                    acquisition personnel in coordination with private and
                    public acquisition colleges and training facilities;
                        ``(G) evaluate the effectiveness of training and
                    career development programs for acquisition personnel;
                        ``(H) promote the establishment and utilization of
                    academic programs by colleges and universities in
                    acquisition fields;
                        ``(I) facilitate, to the extent requested by
                    agencies, interagency intern and training programs; and
                        ``(J) perform other career management or research
                    functions as directed by the Administrator.''; and
                (3) by inserting before paragraph (7) (as so redesignated)
            the following new paragraph (6):
                        ``(6) administering the provisions of section 37;''.
    SEC. 4308. <<NOTE: 10 USC 1701 note.>>  DEMONSTRATION PROJECT
                              RELATING TO CERTAIN PERSONNEL MANAGEMENT
                              POLICIES AND PROCEDURES.

        (a) Commencement.--The Secretary of Defense is encouraged to take
    such steps as may be necessary to provide for the commencement of a
    demonstration project, the purpose of which would be to determine the
    feasibility or desirability of one or more proposals for improving the
    personnel management policies or procedures that apply with respect to
    the acquisition workforce of the Department of Defense.
        (b) Terms and Conditions.--
                (1) In general.--Except as otherwise provided in this
            subsection, any demonstration project described in subsection
            (a) shall be subject to section 4703 of title 5, United States
            Code, and all other provisions of such title that apply with
            respect to any demonstration project under such section.
                (2) Exceptions.--Subject to paragraph (3), in applying
            section 4703 of title 5, United States Code, with respect to a
            demonstration project described in subsection (a)--
                        (A) ``180 days'' in subsection (b)(4) of such
                    section shall be deemed to read ``120 days'';
                        (B) ``90 days'' in subsection (b)(6) of such section
                    shall be deemed to read ``30 days''; and
                        (C) subsection (d)(1)(A) of such section shall be
                    disregarded.
                (3) Condition.--Paragraph (2) shall not apply with respect
            to a demonstration project unless it--
                        (A) involves only the acquisition workforce of the
                    Department of Defense (or any part thereof); and

    [[Page 110 STAT. 670]]

                        (B) commences during the 3-year period beginning on
                    the date of the enactment of this Act.

        (c) Definition.--For purposes of this section, the term
    ``acquisition workforce'' refers to the persons serving in acquisition
    positions within the Department of Defense, as designated pursuant to
    section 1721(a) of title 10, United States Code.

    SEC. 4309. <<NOTE: 40 USC 481 note.>>  COOPERATIVE PURCHASING.

        (a) Delay in Opening Certain Federal Supply Schedules To Use by
    State, Local, and Indian Tribal Governments.--The Administrator of
    General Services may not use the authority of section 201(b)(2) of the
    Federal Property and Administrative Services Act of 1949 (40 U.S.C.
    481(b)(2)) to provide for the use of Federal supply schedules of the
    General Services Administration until after the later of--
                (1) the date on which the 18-month period beginning on the
            date of the enactment of this Act expires; or
                (2) the date on which all of the following conditions are
            met:
                        (A) The Administrator has considered the report of
                    the Comptroller General required by subsection (b).
                        (B) The Administrator has submitted comments on such
                    report to Congress as required by subsection (c).
                        (C) A period of 30 days after the date of submission
                    of such comments to Congress has expired.

        (b) Report.--Not later than one year after the date of the enactment
    of this Act, the Comptroller General shall submit to the Administrator
    of General Services and to Congress a report on the implementation of
    section 201(b) of the Federal Property and Administrative Services Act
    of 1949. The report shall include the following:
                (1) An assessment of the effect on industry, including small
            businesses and local dealers, of providing for the use of
            Federal supply schedules by the entities described in section
            201(b)(2)(A) of the Federal Property and Administrative Services
            Act of 1949.
                (2) An assessment of the effect on such entities of
            providing for the use of Federal supply schedules by them.

        (c) Comments on Report by Administrator.--Not later than 30 days
    after receiving the report of the Comptroller General required by
    subsection (b), the Administrator of General Services shall submit to
    Congress comments on the report, including the Administrator's comments
    on whether the Administrator plans to provide any Federal supply
    schedule for the use of any entity described in section 201(b)(2)(A) of
    the Federal Property and Administrative Services Act of 1949.
        (d) Calculation of 30-Day Period.--For purposes of subsection
    (a)(2)(C), the calculation of the 30-day period shall exclude Saturdays,
    Sundays, and holidays, and any day on which neither House of Congress is
    in session because of an adjournment sine die, a recess of more than 3
    days, or an adjournment of more than 3 days.

    SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT.

        Section 18(c)(1)(E) of the Office of Federal Procurement Policy Act
    (41 U.S.C. 416(c)(1)(E)) is amended by inserting after ``requirements
    contract'' the following: ``, a task order contract, or a delivery order
    contract''.

    [[Page 110 STAT. 671]]

    SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS.

        Section 32(c) of the Office of Federal Procurement Policy Act (41
    U.S.C. 428), as redesignated by section 4304(c)(3), is amended by
    striking out ``the contracting officer'' and inserting in lieu thereof
    ``an employee of an executive agency or a member of the Armed Forces of
    the United States authorized to do so''.

                        Subtitle B--Technical Amendments

    SEC. 4321. AMENDMENTS RELATED TO FEDERAL ACQUISITION STREAMLINING
                              ACT OF 1994.

        (a) <<NOTE: Effective date. 10 USC 2306a note.>>  Public Law 103-
    355.--Effective as of October 13, 1994, and as if included therein as
    enacted, the Federal Acquisition Streamlining Act of 1994 (Public Law
    103-355; 108 Stat. 3243 et seq.) is amended as follows:
                (1) Section 1073 (108 Stat. 3271) <<NOTE: 41 USC 253l.>>  is
            amended by striking out ``section 303I'' and inserting in lieu
            thereof ``section 303K''.
                (2) Section 1202(a) (108 Stat. 3274) <<NOTE: 10 USC
            2306a.>>  is amended by striking out the closing quotation marks
            and second period at the end of paragraph (2)(B) of the
            subsection inserted by the amendment made by that section.
                (3) Section 1251(b) (108 Stat. 3284) <<NOTE: 41 USC 254b
            note.>>  is amended by striking out ``Office of Federal
            Procurement Policy Act'' and inserting in lieu thereof ``Federal
            Property and Administrative Services Act of 1949''.
                (4) Section 2051(e) (108 Stat. 3304) <<NOTE: 41 USC 255.>>
            is amended by striking out the closing quotation marks and
            second period at the end of subsection (f)(3) in the matter
            inserted by the amendment made by that section.
                (5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) <<NOTE: 10
            USC 2324.>>  is amended by replacing ``regulation'' with
            ``regulations'' in the first quoted matter.
                (6) Section 2351(a) (108 Stat. 3322) <<NOTE: 41 USC 605.>>
            is amended by inserting ``(1)'' before ``Section 6''.
                (7) The heading of section 2352(b) (108 Stat.
            3322) <<NOTE: 41 USC 605.>>  is amended by striking out
            ``Procedures to Small Business Government Contractors.--'' and
            inserting in lieu thereof ``Procedures.--''.
                (8) Section 3022 (108 Stat. 3333) <<NOTE: 10 USC 2539b.>>
            is amended by striking out ``each place'' and all that follows
            through the end of the section and inserting in lieu thereof
            ``in paragraph (1) and `, rent,' after `sell' in paragraph
            (2).''.
                (9) Section 5092(b) (108 Stat. 3362) <<NOTE: 41 USC 418b.>>
            is amended by inserting ``of paragraph (2)'' after ``second
            sentence''.
                (10) Section 6005(a) (108 Stat. 3364) <<NOTE: 10 USC
            2409.>>  is amended by striking out the closing quotation marks
            and second period at the end of subsection (e)(2) of the matter
            inserted by the amendment made by that section.
                (11) Section 10005(f)(4) (108 Stat. 3409) <<NOTE: 41 USC 10a
            note.>>  is amended in the second matter in quotation marks by
            striking out `` `Sec. 5. This Act'' and inserting in lieu
            thereof `` `Sec. 7. This title''.

        (b) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) Section 2220(b) is amended by striking out ``the date of
            the enactment of the Federal Acquisition Streamlining Act of
            1994'' and inserting in lieu thereof ``October 13, 1994''.

    [[Page 110 STAT. 672]]

                (2)(A) The section 2247 added by section 7202(a)(1) of
            Public Law 103-355 (108 Stat. 3379) is redesignated as section
            2249.
                (B) The item relating to that section in the table of
            sections at the beginning of subchapter I of chapter 134 is
            revised to conform to the redesignation made by subparagraph
            (A).
                (3) Section 2302(3)(K) is amended by adding a period at the
            end.
                (4) Section 2304(f)(2)(D) is amended by striking out ``the
            Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly referred
            to as the Wagner-O'Day Act,'' and inserting in lieu thereof
            ``the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.),''.
                (5) Section 2304(h) is amended by striking out paragraph (1)
            and inserting in lieu thereof the following:
                ``(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.).''.
                (6)(A) The section 2304a added by section 848(a)(1) of
            Public Law 103-160 (107 Stat. 1724) is redesignated as section
            2304e.
                (B) The item relating to that section in the table of
            sections at the beginning of chapter 137 is revised to conform
            to the redesignation made by subparagraph (A).
                (7) Section 2306a is amended--
                        (A) in subsection (d)(2)(A)(ii), by inserting ``to''
                    after ``The information referred'';
                        (B) in subsection (e)(4)(B)(ii), by striking out the
                    second comma after ``parties''; and
                        (C) in subsection (i)(3), by inserting ``(41 U.S.C.
                    403(12))'' before the period at the end.
                (8) Section 2323 is amended--
                        (A) in subsection (a)(1)(C), by inserting a closing
                    parenthesis after ``1135d-5(3))'' and after
                    ``1059c(b)(1))'';
                        (B) in subsection (a)(3), by striking out ``(issued
                    under'' and all that follows through ``421(c))'';
                        (C) in subsection (b), by inserting ``(1)'' after
                    ``Amount.--''; and
                        (D) in subsection (i)(3), by adding at the end a
                    subparagraph (D) identical to the subparagraph (D) set
                    forth in the amendment made by section 811(e) of Public
                    Law 103-160 (107 Stat. 1702).
                (9) Section 2324 is amended--
                        (A) in subsection (e)(2)(C)--
                              (i) by striking out ``awarding the contract''
                          at the end of the first sentence; and
                              (ii) by striking out ``title III'' and all
                          that follows through ``Act)'' and inserting in
                          lieu thereof ``the Buy American Act (41 U.S.C.
                          10b-1)''; and
                        (B) in subsection (h)(2), by inserting ``the head of
                    the agency or'' after ``in the case of any contract
                    if''.
                (10) Section 2350b is amended--
                        (A) in subsection (c)(1)--
                              (i) by striking out ``specifically--'' and
                          inserting in lieu thereof ``specifically
                          prescribes--''; and
                              (ii) by striking out ``prescribe'' in each of
                          subparagraphs (A), (B), (C), and (D); and
                        (B) in subsection (d)(1), by striking out
                    ``subcontract to be'' and inserting in lieu thereof
                    ``subcontract be''.
                (11) Section 2372(i)(1) is amended by striking out ``section
            2324(m)'' and inserting in lieu thereof ``section 2324(l)''.
                (12) Section 2384(b) is amended--

    [[Page 110 STAT. 673]]

                        (A) in paragraph (2)--
                              (i) by striking ``items, as'' and inserting in
                          lieu thereof ``items (as''; and
                              (ii) by inserting a closing parenthesis after
                          ``403(12))''; and
                        (B) in paragraph (3), by inserting a closing
                    parenthesis after ``403(11))''.
                (13) Section 2400(a)(5) is amended by striking out ``the
            preceding sentence'' and inserting in lieu thereof ``this
            paragraph''.
                (14) Section 2405 is amended--
                        (A) in paragraphs (1) and (2) of subsection (a), by
                    striking out ``the date of the enactment of the Federal
                    Acquisition Streamlining Act of 1994'' and inserting in
                    lieu thereof ``October 13, 1994''; and
                        (B) in subsection (c)(3)--
                              (i) by striking out ``the later of--'' and all
                          that follows through ``(B)''; and
                              (ii) by redesignating clauses (i), (ii), and
                          (iii) as subparagraphs (A), (B), and (C),
                          respectively, and realigning those subparagraphs
                          accordingly.
                (15) Section 2410d(b) is amended by striking out paragraph
            (3).
                (16) Section 2410g(d)(1) is amended by inserting before the
            period at the end the following: ``(as defined in section 4(12)
            of the Office of Federal Procurement Policy Act (41 U.S.C.
            403(12)))''.
                (17) Section 2424(c) is amended--
                        (A) by inserting ``Exception.--'' after ``(c)''; and
                        (B) by striking out ``drink'' the first and third
                    places it appears in the second sentence and inserting
                    in lieu thereof ``beverage''.
                (18) Section 2431 is amended--
                        (A) in subsection (b)--
                              (i) by striking out ``Any report'' in the
                          first sentence and inserting in lieu thereof ``Any
                          documents''; and
                              (ii) by striking out ``the report'' in
                          paragraph (3) and inserting in lieu thereof ``the
                          documents''; and
                        (B) in subsection (c), by striking ``reporting'' and
                    inserting in lieu thereof ``documentation''.
                (19) Section 2461(e)(1) is amended by striking out ``the Act
            of June 25, 1938 (41 U.S.C. 47), popularly referred to as the
            Wagner-O'Day Act'' and inserting in lieu thereof ``the Javits-
            Wagner-O'Day Act (41 U.S.C. 47)''.
                (20) Section 2533(a) is amended by striking out ``title III
            of the Act'' and all that follows through ``such Act'' and
            inserting in lieu thereof ``the Buy American Act (41 U.S.C.
            10a)) whether application of such Act''.
                (21) Section 2662(b) is amended by striking out ``small
            purchase threshold'' and inserting in lieu thereof ``simplified
            acquisition threshold''.
                (22) Section 2701(i)(1) is amended--
                        (A) by striking out ``Act of August 24, 1935 (40
                    U.S.C. 270a-270d), commonly referred to as the `Miller
                    Act','' and inserting in lieu thereof ``Miller Act (40
                    U.S.C. 270a et seq.)''; and

    [[Page 110 STAT. 674]]

                        (B) by striking out ``such Act of August 24, 1935''
                    and inserting in lieu thereof ``the Miller Act''.

        (c) Small Business Act.--The Small Business Act (15 U.S.C. 632 et
    seq.) is amended as follows:
                (1) Section 8(d) (15 U.S.C. 637(d)) is amended--
                        (A) in paragraph (1), by striking out the second
                    comma after ``small business concerns'' the first place
                    it appears; and
                        (B) in paragraph (6)(C), by striking out ``and small
                    business concerns owned and controlled by the socially
                    and economically disadvantaged individuals'' and
                    inserting in lieu thereof ``, small business concerns
                    owned and controlled by socially and economically
                    disadvantaged individuals, and small business concerns
                    owned and controlled by women''.
                (2) Section 8(f) (15 U.S.C. 637(f)) is amended by inserting
            ``and'' after the semicolon at the end of paragraph (5).
                (3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is amended by
            striking out the second comma after the first appearance of
            ``small business concerns''.

        (d) Title 31, United States Code.--Title 31, United States Code, is
    amended as follows:
                (1) Section 3551 is amended--
                        (A) by striking out ``subchapter--'' and inserting
                    in lieu thereof ``subchapter:''; and
                        (B) in paragraph (2), by striking out ``or proposed
                    contract'' and inserting in lieu thereof ``or a
                    solicitation or other request for offers''.
                (2) Section 3553(b)(3) is amended by striking out
            ``3554(a)(3)'' and inserting in lieu thereof ``3554(a)(4)''.
                (3) Section 3554(b)(2) is amended by striking out ``section
            3553(d)(2)(A)(i)'' and inserting in lieu thereof ``section
            3553(d)(3)(C)(i)(I)''.

        (e) Federal Property and Administrative Services Act of 1949.--The
    Federal Property and Administrative Services Act of 1949 is amended as
    follows:
                (1) The table of contents in section 1 (40 U.S.C. 471 prec.)
            is amended--
                        (A) by striking out the item relating to section
                    104;
                        (B) by striking out the item relating to section 201
                    and inserting in lieu thereof the following:

    ``Sec. 201. Procurements, warehousing, and related activities.'';

                        (C) by inserting after the item relating to section
                    315 the following new item:

    ``Sec. 316. Merit-based award of grants for research and development.'';

                        (D) by striking out the item relating to section 603
                    and inserting in lieu thereof the following:

    ``Sec. 603. Authorizations for appropriations and transfer authority.'';

                    and
                        (E) by inserting after the item relating to section
                    605 the following new item:

    ``Sec. 606. Sex discrimination.''.

                (2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) is amended
            by striking out ``the Act of June 25, 1938 (41 U.S.C. 46 et
            seq.), popularly referred to as the Wagner-O'Day Act,'' and

    [[Page 110 STAT. 675]]

            inserting in lieu thereof ``the Javits-Wagner-O'Day Act (41
            U.S.C. 46 et seq.),''.
                (3) The heading for paragraph (1) of section 304A(c) (41
            U.S.C. 254b(c)) is amended by changing each letter that is
            capitalized (other than the first letter of the first word) to
            lower case.
                (4) Subsection (d)(2)(A)(ii) of section 304A (41 U.S.C.
            254b) is amended by inserting ``to'' after ``The information
            referred''.
                (5) Section 304C(a)(2) <<NOTE: 41 USC 254d.>>  is amended by
            striking out ``section 304B'' and inserting in lieu thereof
            ``section 304A''.
                (6) Section 307(b) <<NOTE: 41 USC 257.>>  is amended by
            striking out ``section 305(c)'' and inserting in lieu thereof
            ``section 305(d)''.
                (7) The heading for section 314A (41 U.S.C. 264a) is amended
            to read as follows:
    ``SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL
                                ITEMS.''.
                (8) Section 315(b) (41 U.S.C. 265(b)) is amended by striking
            out ``inspector general'' both places it appears and inserting
            in lieu thereof ``Inspector General''.
                (9) The heading for section 316 (41 U.S.C. 266) is amended
            by inserting at the end a period.

        (f) Walsh-Healey Act.--
                (1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is amended--
                        (A) by transferring the second section 11 (as added
                    by section 7201(4) of Public Law 103-355) <<NOTE: 41 USC
                    43b.>>  so as to appear after section 10; and
                        (B) by redesignating the three sections following
                    such section 11 (as so transferred) as sections 12, 13,
                    and 14. <<NOTE: 41 USC 35 note, 44, 45.>>
                (2) Such Act is further amended in section 10-- <<NOTE: 41
            USC 43a.>>
                        (A) in subsection (b), by striking out ``section
                    1(b)'' and inserting in lieu thereof ``section 1(a)'';
                    and
                        (B) in subsection (c), by striking out the comma
                    after `` `locality' ''.

        (g) Anti-Kickback Act of 1986.--Section 7(d) of the Anti-Kickback
    Act of 1986 (41 U.S.C. 57(d)) is amended--
                (1) by striking out ``such Act'' and inserting in lieu
            thereof ``the Office of Federal Procurement Policy Act''; and
                (2) by striking out the second period at the end.

        (h) Office of Federal Procurement Policy Act.--The Office of Federal
    Procurement Policy Act (41 U.S.C. 401 et seq.) is amended as follows:
                (1) Section 6 (41 U.S.C. 405) is amended by transferring
            paragraph (12) of subsection (d) (as such paragraph was
            redesignated by section 5091(2) of the Federal Acquisition
            Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3361)) to the
            end of that subsection.
                (2) Section 6(11) (41 U.S.C. 405(11)) is amended by striking
            out ``small business'' and inserting in lieu thereof ``small
            businesses''.
                (3) Section 18(b) (41 U.S.C. 416(b)) is amended by inserting
            ``and'' after the semicolon at the end of paragraph (5).
                (4) Section 26(f)(3) (41 U.S.C. 422(f)(3)) is amended in the
            first sentence by striking out ``Not later than 180 days after
            the date of enactment of this section, the Administrator'' and
            inserting in lieu thereof ``The Administrator''.

    [[Page 110 STAT. 676]]

        (i) Other Laws.--
                (1) The National Defense Authorization Act for Fiscal Year
            1994 (Public Law 103-160) is amended as follows:
                        (A) Section 126(c) (107 Stat. 1567) <<NOTE: 10 USC
                    2401 note.>>  is amended by striking out ``section 2401
                    of title 10, United States Code, or section 9081 of the
                    Department of Defense Appropriations Act, 1990 (10
                    U.S.C. 2401 note).'' and inserting in lieu thereof
                    ``section 2401 or 2401a of title 10, United States
                    Code.''.
                        (B) Section 127 (107 Stat. 1568) is amended--
                              (i) in subsection (a), by striking out
                          ``section 2401 of title 10, United States Code, or
                          section 9081 of the Department of Defense
                          Appropriations Act, 1990 (10 U.S.C. 2401 note).''
                          and inserting in lieu thereof ``section 2401 or
                          2401a of title 10, United States Code.''; and
                              (ii) in subsection (e), by striking out
                          ``section 9081 of the Department of Defense
                          Appropriations Act, 1990 (10 U.S.C. 2401 note).''
                          and inserting in lieu thereof ``section 2401a of
                          title 10, United States Code.''.
                (2) The National Defense Authorization Act for Fiscal Years
            1990 and 1991 (Public Law 101-189) is amended by striking out
            section 824. <<NOTE: 10 USC 2325 note.>>
                (3) Section 117 of the National Defense Authorization Act,
            Fiscal Year 1989 (Public Law 100-456; 10 U.S.C. 2431
            note) <<NOTE: 10 USC 2341 note.>>  is amended by striking out
            subsection (c).
                (4) The National Defense Authorization Act for Fiscal Years
            1988 and 1989 (Public Law 100-180) is amended by striking out
            section 825 (10 U.S.C. 2432 note).
                (5) Section 11 of Public Law 101-552 (5 U.S.C. 581 <<NOTE: 5
            USC 571 note.>>  note) is amended by inserting ``under'' before
            ``the amendments made by this Act''.
                (6) The last sentence of section 6 of the Federal Power Act
            (16 U.S.C. 799) is repealed.
                (7) Section 101(a)(11)(A) of the Rehabilitation Act of 1973
            (29 U.S.C. 721(a)(11)(A)) is amended by striking out ``the Act
            entitled `An Act to create a Committee on Purchases of Blind-
            made Products, and for other purposes', approved June 25, 1938
            (commonly known as the Wagner-O'Day Act; 41 U.S.C. 46 et seq.)''
            and inserting in lieu thereof ``the Javits-Wagner-O'Day Act (41
            U.S.C. 46 et seq.)''.
                (8) The first section 5 of the Miller Act (40 U.S.C. 270a
            note) is redesignated as section 7 and, as so redesignated, is
            transferred to the end of that Act.
                (9) Section 3737(g) of the Revised Statutes of the United
            States (41 U.S.C. 15(g)) is amended by striking out ``rights of
            obligations'' and inserting in lieu thereof ``rights or
            obligations''.
                (10) The Act of June 15, 1940 (41 U.S.C. 20a; Chapter 367;
            54 Stat. 398), is repealed.
                (11) The Act of November 28, 1943 (41 U.S.C. 20b; Chapter
            328; 57 Stat. 592), is repealed.
                (12) Section 3741 of the Revised Statutes of the United
            States (41 U.S.C. 22), as amended by section 6004 of Public Law
            103-355 (108 Stat. 3364), is amended by striking out ``No
            member'' and inserting in lieu thereof ``Sec. 3741. No Member''.

    [[Page 110 STAT. 677]]

                (13) Section 5152(a)(1) of the Drug-Free Workplace Act of
            1988 (41 U.S.C. 701(a)(1)) is amended by striking out ``as
            defined in section 4 of the Office of Federal Procurement Policy
            Act (41 U.S.C. 403)'' and inserting in lieu thereof ``(as
            defined in section 4(12) of such Act (41 U.S.C. 403(12)))''.
    SEC. 4322. MISCELLANEOUS AMENDMENTS TO FEDERAL ACQUISITION LAWS.

        (a) Office of Federal Procurement Policy Act.--The Office of Federal
    Procurement Policy Act (41 U.S.C. 401 et seq.) is amended as follows:
                (1) Section 6(b) (41 U.S.C. 405(b)) is amended by striking
            out the second comma after ``under subsection (a)'' in the first
            sentence.
                (2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is amended by
            striking out ``Under Secretary of Defense for Acquisition'' and
            inserting in lieu thereof ``Under Secretary of Defense for
            Acquisition and Technology''.

        (b) Other Laws.--
                (1) Section 11(2) of the Inspector General Act of 1978 (5
            U.S.C. App.) is amended by striking out the second comma after
            ``Community Service''.
                (2) Section 908(e) of the Defense Acquisition Improvement
            Act of 1986 (10 U.S.C. 2326 note) is amended by striking out
            ``section 2325(g)'' and inserting in lieu thereof ``section
            2326(g)''.
                (3) <<NOTE: Effective date.>>  Effective as of August 9,
            1989, and as if included therein as enacted, Public Law 101-73
            is amended in section 501(b)(1)(A) (103 Stat. 393) <<NOTE: 5 USC
            app. 11, 11 note.>>  by striking out ``be,'' and inserting in
            lieu thereof ``be;'' in the second quoted matter therein.
                (4) Section 3732(a) of the Revised Statutes of the United
            States (41 U.S.C. 11(a)) is amended by striking out the second
            comma after ``quarters''.
                (5) Section 2 of the Contract Disputes Act of 1978 (41
            U.S.C. 601) is amended in paragraphs (3), (5), (6), and (7), by
            striking out ``The'' and inserting in lieu thereof ``the''.
                (6) Section 6 of the Contract Disputes Act of 1978 (41
            U.S.C. 605) is amended in subsections (d) and (e) by inserting
            after ``United States Code'' each place it appears the
            following: ``(as in effect on September 30, 1995)''.
                (7) Section 13 of the Contract Disputes Act of 1978 (41
            U.S.C. 612) is amended--
                        (A) in subsection (a), by striking out ``section
                    1302 of the Act of July 27, 1956, (70 Stat. 694, as
                    amended; 31 U.S.C. 724a)'' and inserting in lieu thereof
                    ``section 1304 of title 31, United States Code''; and
                        (B) in subsection (c), by striking out ``section
                    1302 of the Act of July 27, 1956, (70 Stat. 694, as
                    amended; 31 U.S.C. 724a)'' and inserting in lieu thereof
                    ``section 1304 of title 31, United States Code,''.

    [[Page 110 STAT. 678]]

                 TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

    SEC. 4401. <<NOTE: 41 USC 251 note.>>  EFFECTIVE DATE AND APPLICABILITY.

        (a) Effective Date.--Except as otherwise provided in this division,
    this division and the amendments made by this division shall take effect
    on the date of the enactment of this Act.
        (b) Applicability of Amendments.--
                (1) Solicitations, unsolicited proposals, and related
            contracts.--An amendment made by this division shall apply, in
            the manner prescribed in the final regulations promulgated
            pursuant to section 4402 to implement such amendment, with
            respect to any solicitation that is issued, any unsolicited
            proposal that is received, and any contract entered into
            pursuant to such a solicitation or proposal, on or after the
            date described in paragraph (3).
                (2) Other matters.--An amendment made by this division shall
            also apply, to the extent and in the manner prescribed in the
            final regulations promulgated pursuant to section 4402 to
            implement such amendment, with respect to any matter related
            to--
                        (A) a contract that is in effect on the date
                    described in paragraph (3);
                        (B) an offer under consideration on the date
                    described in paragraph (3); or
                        (C) any other proceeding or action that is ongoing
                    on the date described in paragraph (3).
                (3) Demarcation date.--The date referred to in paragraphs
            (1) and (2) is the date specified in such final regulations. The
            date so specified shall be January 1, 1997, or any earlier date
            that is not within 30 days after the date on which such final
            regulations are published.

    SEC. 4402. <<NOTE: 41 USC 251 note.>>  IMPLEMENTING REGULATIONS.

        (a) <<NOTE: Federal Register, publication.>>  Proposed Revisions.--
    Proposed revisions to the Federal Acquisition Regulation and such other
    proposed regulations (or revisions to existing regulations) as may be
    necessary to implement this Act shall be published in the Federal
    Register not later than 210 days after the date of the enactment of this
    Act.

        (b) Public Comment.--The proposed regulations described in
    subsection (a) shall be made available for public comment for a period
    of not less than 60 days.
        (c) <<NOTE: Federal Register, publication.>>  Final Regulations.--
    Final regulations shall be published in the Federal Register not later
    than 330 days after the date of enactment of this Act.

        (d) Modifications.--Final regulations promulgated pursuant to this
    section to implement an amendment made by this Act may provide for
    modification of an existing contract without consideration upon the
    request of the contractor.
        (e) Savings Provisions.--
                (1) Validity of prior actions.--Nothing in this division
            shall be construed to affect the validity of any action taken or
            any contract entered into before the date specified in the
            regulations pursuant to section 4401(b)(3) except to the extent
            and in the manner prescribed in such regulations.

    [[Page 110 STAT. 679]]

                (2) Renegotiation and modification of preexisting
            contracts.--Except as specifically provided in this division,
            nothing in this division shall be construed to require the
            renegotiation or modification of contracts in existence on the
            date of the enactment of this Act.
                (3) Continued applicability of preexisting law.--Except as
            otherwise provided in this division, a law amended by this
            division shall continue to be applied according to the
            provisions thereof as such law was in effect on the day before
            the date of the enactment of this Act until--
                        (A) the date specified in final regulations
                    implementing the amendment of that law (as promulgated
                    pursuant to this section); or
                        (B) if no such date is specified in regulations,
                    January 1, 1997.

       DIVISION E <<NOTE: Information Technology Management Reform Act of
    1996.>> --INFORMATION TECHNOLOGY MANAGEMENT REFORM

    SEC. 5001. <<NOTE: 40 USC 1401 note.>>  SHORT TITLE.

        This division may be cited as the ``Information Technology
    Management Reform Act of 1996''.

    SEC. 5002. <<NOTE: 40 USC 1401.>>  DEFINITIONS.

        In this division:
                (1) Director.--The term ``Director'' means the Director of
            the Office of Management and Budget.
                (2) Executive agency.--The term ``executive agency'' has the
            meaning given that term in section 4(1) of the Office of Federal
            Procurement Policy Act (41 U.S.C. 403(1)).
                (3) Information technology.--(A) The term ``information
            technology'', with respect to an executive agency means any
            equipment or interconnected system or subsystem of equipment,
            that is used in the automatic acquisition, storage,
            manipulation, management, movement, control, display, switching,
            interchange, transmission, or reception of data or information
            by the executive agency. For purposes of the preceding sentence,
            equipment is used by an executive agency if the equipment is
            used by the executive agency directly or is used by a contractor
            under a contract with the executive agency which (i) requires
            the use of such equipment, or (ii) requires the use, to a
            significant extent, of such equipment in the performance of a
            service or the furnishing of a product.
                (B) The term ``information technology'' includes computers,
            ancillary equipment, software, firmware and similar procedures,
            services (including support services), and related resources.
                (C) Notwithstanding subparagraphs (A) and (B), the term
            ``information technology'' does not include any equipment that
            is acquired by a Federal contractor incidental to a Federal
            contract.
                (4) Information resources.--The term ``information
            resources'' has the meaning given such term in section 3502(6)
            of title 44, United States Code.

    [[Page 110 STAT. 680]]

                (5) Information resources management.--The term
            ``information resources management'' has the meaning given such
            term in section 3502(7) of title 44, United States Code.
                (6) Information system.--The term ``information system'' has
            the meaning given such term in section 3502(8) of title 44,
            United States Code.
                (7) Commercial item.--The term ``commercial item'' has the
            meaning given that term in section 4(12) of the Office of
            Federal Procurement Policy Act (41 U.S.C. 403(12)).

       TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                          Subtitle A--General Authority

    SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF GENERAL
                SERVICES.

        Section 111 of the Federal Property and Administrative Services Act
    of 1949 (40 U.S.C. 759) is repealed.

           Subtitle B--Director of the Office of Management and Budget

    SEC. 5111. <<NOTE: 40 USC 1411.>>  RESPONSIBILITY OF DIRECTOR.

        In fulfilling the responsibility to administer the functions
    assigned under chapter 35 of title 44, United States Code, the Director
    shall comply with this title with respect to the specific matters
    covered by this title.

    SEC. 5112. <<NOTE: 40 USC 1412.>>  CAPITAL PLANNING AND INVESTMENT
                CONTROL.

        (a) Federal Information Technology.--The Director shall perform the
    responsibilities set forth in this section in fulfilling the
    responsibilities under section 3504(h) of title 44, United States Code.
        (b) <<NOTE: Public information.>>  Use of Information Technology in
    Federal Programs.--The Director shall promote and be responsible for
    improving the acquisition, use, and disposal of information technology
    by the Federal Government to improve the productivity, efficiency, and
    effectiveness of Federal programs, including through dissemination of
    public information and the reduction of information collection burdens
    on the public.

        (c) Use of Budget Process.--The Director shall develop, as part of
    the budget process, a process for analyzing, tracking, and evaluating
    the risks and results of all major capital investments made by an
    executive agency for information systems. The process shall cover the
    life of each system and shall include explicit criteria for analyzing
    the projected and actual costs, benefits, and risks associated with the
    investments. <<NOTE: Reports.>>  At the same time that the President
    submits the budget for a fiscal year to Congress under section 1105(a)
    of title 31, United States Code, the Director shall submit to Congress a
    report on the net program performance benefits achieved as a result of
    major capital investments made by executive

    [[Page 110 STAT. 681]]

    agencies in information systems and how the benefits relate to the
    accomplishment of the goals of the executive agencies.

        (d) Information Technology Standards.--The Director shall oversee
    the development and implementation of standards and guidelines
    pertaining to Federal computer systems by the Secretary of Commerce
    through the National Institute of Standards and Technology under section
    5131 and section 20 of the National Institute of Standards and
    Technology Act (15 U.S.C. 278g-3).
        (e) Designation of Executive Agents for Acquisitions.--The Director
    shall designate (as the Director considers appropriate) one or more
    heads of executive agencies as executive agent for Government-wide
    acquisitions of information technology.
        (f) Use of Best Practices in Acquisitions.--The Director shall
    encourage the heads of the executive agencies to develop and use the
    best practices in the acquisition of information technology.

        (g) Assessment of Other Models for Managing Information
    Technology.--The Director shall assess, on a continuing basis, the
    experiences of executive agencies, State and local governments,
    international organizations, and the private sector in managing
    information technology.
        (h) Comparison of Agency Uses of Information Technology.--The
    Director shall compare the performances of the executive agencies in
    using information technology and shall disseminate the comparisons to
    the heads of the executive agencies.
        (i) Training.--The Director shall monitor the development and
    implementation of training in information resources management for
    executive agency personnel.
        (j) Informing Congress.--The Director shall keep Congress fully
    informed on the extent to which the executive agencies are improving the
    performance of agency programs and the accomplishment of agency missions
    through the use of the best practices in information resources
    management.
        (k) Procurement Policy and Acquisitions of Information Technology.--
    The Director shall coordinate the development and review by the
    Administrator of the Office of Information and Regulatory Affairs of
    policy associated with Federal acquisition of information technology
    with the Office of Federal Procurement Policy.

    SEC. 5113. <<NOTE: 40 USC 1413.>>  PERFORMANCE-BASED AND RESULTS-BASED
                MANAGEMENT.

        (a) In General.--The Director shall encourage the use of
    performance-based and results-based management in fulfilling the
    responsibilities assigned under section 3504(h), of title 44, United
    States Code.
        (b) Evaluation of Agency Programs and Investments.--
                (1) Requirement.--The Director shall evaluate the
            information resources management practices of the executive
            agencies with respect to the performance and results of the
            investments made by the executive agencies in information
            technology.
                (2) Direction for executive agency action.--The Director
            shall issue to the head of each executive agency clear and
            concise direction that the head of such agency shall--
                        (A) establish effective and efficient capital
                    planning processes for selecting, managing, and
                    evaluating the

    [[Page 110 STAT. 682]]

                    results of all of its major investments in information
                    systems;
                        (B) determine, before making an investment in a new
                    information system--
                              (i) whether the function to be supported by
                          the system should be performed by the private
                          sector and, if so, whether any component of the
                          executive agency performing that function should
                          be converted from a governmental organization to a
                          private sector organization; or
                              (ii) whether the function should be performed
                          by the executive agency and, if so, whether the
                          function should be performed by a private sector
                          source under contract or by executive agency
                          personnel;
                        (C) analyze the missions of the executive agency
                    and, based on the analysis, revise the executive
                    agency's mission-related processes and administrative
                    processes, as appropriate, before making significant
                    investments in information technology to be used in
                    support of those missions; and
                        (D) ensure that the information security policies,
                    procedures, and practices are adequate.
                (3) Guidance for multiagency investments.--The direction
            issued under paragraph (2) shall include guidance for
            undertaking efficiently and effectively interagency and
            Government-wide investments in information technology to improve
            the accomplishment of missions that are common to the executive
            agencies.
                (4) Periodic reviews.--The Director shall implement through
            the budget process periodic reviews of selected information
            resources management activities of the executive agencies in
            order to ascertain the efficiency and effectiveness of
            information technology in improving the performance of the
            executive agency and the accomplishment of the missions of the
            executive agency.
                (5) Enforcement of accountability.--
                        (A) In general.--The Director may take any
                    authorized action that the Director considers
                    appropriate, including an action involving the budgetary
                    process or appropriations management process, to enforce
                    accountability of the head of an executive agency for
                    information resources management and for the investments
                    made by the executive agency in information technology.
                        (B) Specific actions.--Actions taken by the Director
                    in the case of an executive agency may include--
                              (i) recommending a reduction or an increase in
                          any amount for information resources that the head
                          of the executive agency proposes for the budget
                          submitted to Congress under section 1105(a) of
                          title 31, United States Code;
                              (ii) reducing or otherwise adjusting
                          apportionments and reapportionments of
                          appropriations for information resources;
                              (iii) using other authorized administrative
                          controls over appropriations to restrict the
                          availability of funds for information resources;
                          and

    [[Page 110 STAT. 683]]

                              (iv) designating for the executive agency an
                          executive agent to contract with private sector
                          sources for the performance of information
                          resources management or the acquisition of
                          information technology.

                         Subtitle C--Executive Agencies

    SEC. 5121. <<NOTE: 40 USC 1421.>>  RESPONSIBILITIES.

        In fulfilling the responsibilities assigned under chapter 35 of
    title 44, United States Code, the head of each executive agency shall
    comply with this subtitle with respect to the specific matters covered
    by this subtitle.

    SEC. 5122. <<NOTE: 40 USC 1422.>>  CAPITAL PLANNING AND INVESTMENT
                CONTROL.

        (a) Design of Process.--In fulfilling the responsibilities assigned
    under section 3506(h) of title 44, United States Code, the head of each
    executive agency shall design and implement in the executive agency a
    process for maximizing the value and assessing and managing the risks of
    the information technology acquisitions of the executive agency.
        (b) Content of Process.--The process of an executive agency shall--
                (1) provide for the selection of information technology
            investments to be made by the executive agency, the management
            of such investments, and the evaluation of the results of such
            investments;
                (2) be integrated with the processes for making budget,
            financial, and program management decisions within the executive
            agency;
                (3) include minimum criteria to be applied in considering
            whether to undertake a particular investment in information
            systems, including criteria related to the quantitatively
            expressed projected net, risk-adjusted return on investment and
            specific quantitative and qualitative criteria for comparing and
            prioritizing alternative information systems investment
            projects;
                (4) provide for identifying information systems investments
            that would result in shared benefits or costs for other Federal
            agencies or State or local governments;
                (5) provide for identifying for a proposed investment
            quantifiable measurements for determining the net benefits and
            risks of the investment; and
                (6) provide the means for senior management personnel of the
            executive agency to obtain timely information regarding the
            progress of an investment in an information system, including a
            system of milestones for measuring progress, on an independently
            verifiable basis, in terms of cost, capability of the system to
            meet specified requirements, timeliness, and quality.

    SEC. 5123. <<NOTE: 40 USC 1423.>>  PERFORMANCE AND RESULTS-BASED
                MANAGEMENT.

        In fulfilling the responsibilities under section 3506(h) of title
    44, United States Code, the head of an executive agency shall--
                (1) establish goals for improving the efficiency and
            effectiveness of agency operations and, as appropriate, the
            delivery of services to the public through the effective use of
            information technology;

    [[Page 110 STAT. 684]]

                (2) <<NOTE: Reports.>>  prepare an annual report, to be
            included in the executive agency's budget submission to
            Congress, on the progress in achieving the goals;
                (3) ensure that performance measurements are prescribed for
            information technology used by or to be acquired for, the
            executive agency and that the performance measurements measure
            how well the information technology supports programs of the
            executive agency;
                (4) where comparable processes and organizations in the
            public or private sectors exist, quantitatively benchmark agency
            process performance against such processes in terms of cost,
            speed, productivity, and quality of outputs and outcomes;
                (5) analyze the missions of the executive agency and, based
            on the analysis, revise the executive agency's mission-related
            processes and administrative processes as appropriate before
            making significant investments in information technology that is
            to be used in support of the performance of those missions; and
                (6) ensure that the information security policies,
            procedures, and practices of the executive agency are adequate.

    SEC. 5124. <<NOTE: 40 USC 1424.>>  ACQUISITIONS OF INFORMATION
                TECHNOLOGY.

        (a) In General.--The authority of the head of an executive agency to
    conduct an acquisition of information technology includes the following
    authorities:
                (1) To acquire information technology as authorized by law.
                (2) To enter into a contract that provides for multiagency
            acquisitions of information technology in accordance with
            guidance issued by the Director.
                (3) If the Director finds that it would be advantageous for
            the Federal Government to do so, to enter into a multiagency
            contract for procurement of commercial items of information
            technology that requires each executive agency covered by the
            contract, when procuring such items, either to procure the items
            under that contract or to justify an alternative procurement of
            the items.

        (b) FTS 2000 Program.--Notwithstanding any other provision of this
    or any other law, the Administrator of General Services shall continue
    to manage the FTS 2000 program, and to coordinate the follow-on to that
    program, on behalf of and with the advice of the heads of executive
    agencies.

    SEC. 5125. <<NOTE: 40 USC 1425.>>  AGENCY CHIEF INFORMATION OFFICER.

        (a) Designation of Chief Information Officers.--Section 3506 of
    title 44, United States Code, is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2)(A), by striking out ``senior
                    official'' and inserting in lieu thereof ``Chief
                    Information Officer'';
                        (B) in paragraph (2)(B)--
                              (i) by striking out ``senior officials'' in
                          the first sentence and inserting in lieu thereof
                          ``Chief Information Officers'';
                              (ii) by striking out ``official'' in the
                          second sentence and inserting in lieu thereof
                          ``Chief Information Officer''; and

    [[Page 110 STAT. 685]]

                              (iii) by striking out ``officials'' in the
                          second sentence and inserting in lieu thereof
                          ``Chief Information Officers''; and
                        (C) in paragraphs (3) and (4), by striking out
                    ``senior official'' each place it appears and inserting
                    in lieu thereof ``Chief Information Officer''; and
                (2) in subsection (c)(1), by striking out ``official'' in
            the matter preceding subparagraph (A) and inserting in lieu
            thereof ``Chief Information Officer''.

        (b) General Responsibilities.--The Chief Information Officer of an
    executive agency shall be responsible for--
                (1) providing advice and other assistance to the head of the
            executive agency and other senior management personnel of the
            executive agency to ensure that information technology is
            acquired and information resources are managed for the executive
            agency in a manner that implements the policies and procedures
            of this division, consistent with chapter 35 of title 44, United
            States Code, and the priorities established by the head of the
            executive agency;
                (2) developing, maintaining, and facilitating the
            implementation of a sound and integrated information technology
            architecture for the executive agency; and
                (3) promoting the effective and efficient design and
            operation of all major information resources management
            processes for the executive agency, including improvements to
            work processes of the executive agency.

        (c) Duties and Qualifications.--The Chief Information Officer of an
    agency that is listed in section 901(b) of title 31, United States Code,
    shall--
                (1) have information resources management duties as that
            official's primary duty;
                (2) monitor the performance of information technology
            programs of the agency, evaluate the performance of those
            programs on the basis of the applicable performance
            measurements, and advise the head of the agency regarding
            whether to continue, modify, or terminate a program or project;
            and
                (3) annually, as part of the strategic planning and
            performance evaluation process required (subject to section 1117
            of title 31, United States Code) under section 306 of title 5,
            United States Code, and sections 1105(a)(29), 1115, 1116, 1117,
            and 9703 of title 31, United States Code--
                        (A) assess the requirements established for agency
                    personnel regarding knowledge and skill in information
                    resources management and the adequacy of such
                    requirements for facilitating the achievement of the
                    performance goals established for information resources
                    management;
                        (B) assess the extent to which the positions and
                    personnel at the executive level of the agency and the
                    positions and personnel at management level of the
                    agency below the executive level meet those
                    requirements;
                        (C) in order to rectify any deficiency in meeting
                    those requirements, develop strategies and specific
                    plans for hiring, training, and professional
                    development; and
                        (D) <<NOTE: Reports.>>  report to the head of the
                    agency on the progress made in improving information
                    resources management capability.

    [[Page 110 STAT. 686]]

        (d) Information Technology Architecture Defined.--In this section,
    the term ``information technology architecture'', with respect to an
    executive agency, means an integrated framework for evolving or
    maintaining existing information technology and acquiring new
    information technology to achieve the agency's strategic goals and
    information resources management goals.
        (e) Executive Level IV.--Section 5315 of title 5, United States
    Code, is amended by adding at the end the following:
                ``Chief Information Officer, Department of Agriculture.
                ``Chief Information Officer, Department of Commerce.
                ``Chief Information Officer, Department of Defense (unless
            the official designated as the Chief Information Officer of the
            Department of Defense is an official listed under section 5312,
            5313, or 5314 of this title).
                ``Chief Information Officer, Department of Education.
                ``Chief Information Officer, Department of Energy.
                ``Chief Information Officer, Department of Health and Human
            Services.
                ``Chief Information Officer, Department of Housing and Urban
            Development.
                ``Chief Information Officer, Department of Interior.
                ``Chief Information Officer, Department of Justice.
                ``Chief Information Officer, Department of Labor.
                ``Chief Information Officer, Department of State.
                ``Chief Information Officer, Department of Transportation.
                ``Chief Information Officer, Department of Treasury.
                ``Chief Information Officer, Department of Veterans Affairs.
                ``Chief Information Officer, Environmental Protection
            Agency.
                ``Chief Information Officer, National Aeronautics and Space
            Administration.
                ``Chief Information Officer, Agency for International
            Development.
                ``Chief Information Officer, Federal Emergency Management
            Agency.
                ``Chief Information Officer, General Services
            Administration.
                ``Chief Information Officer, National Science Foundation.
                ``Chief Information Officer, Nuclear Regulatory Agency.
                ``Chief Information Officer, Office of Personnel Management.
                ``Chief Information Officer, Small Business
            Administration.''.

    SEC. 5126. <<NOTE: 40 USC 1426.>>  ACCOUNTABILITY.

        The head of each executive agency, in consultation with the Chief
    Information Officer and the Chief Financial Officer of that executive
    agency (or, in the case of an executive agency without a Chief Financial
    Officer, any comparable official), shall establish policies and
    procedures that--
                (1) ensure that the accounting, financial, and asset
            management systems and other information systems of the
            executive agency are designed, developed, maintained, and used
            effectively to provide financial or program performance data for
            financial statements of the executive agency;

    [[Page 110 STAT. 687]]

                (2) ensure that financial and related program performance
            data are provided on a reliable, consistent, and timely basis to
            executive agency financial management systems; and
                (3) ensure that financial statements support--
                        (A) assessments and revisions of mission-related
                    processes and administrative processes of the executive
                    agency; and
                        (B) performance measurement of the performance in
                    the case of investments made by the agency in
                    information systems.

    SEC. 5127. <<NOTE: 40 USC 1427.>>  SIGNIFICANT DEVIATIONS.

        The head of an executive agency shall identify in the strategic
    information resources management plan required under section 3506(b)(2)
    of title 44, United States Code, any major information technology
    acquisition program, or any phase or increment of such a program, that
    has significantly deviated from the cost, performance, or schedule goals
    established for the program.

    SEC. 5128. <<NOTE: 40 USC 1428.>>  INTERAGENCY SUPPORT.

        Funds available for an executive agency for oversight, acquisition,
    and procurement of information technology may be used by the head of the
    executive agency to support jointly with other executive agencies the
    activities of interagency groups that are established to advise the
    Director in carrying out the Director's responsibilities under this
    title. The use of such funds for that purpose shall be subject to such
    requirements and limitations on uses and amounts as the Director may
    prescribe. The Director shall prescribe any such requirements and
    limitations during the Director's review of the executive agency's
    proposed budget submitted to the Director by the head of the executive
    agency for purposes of section 1105 of title 31, United States Code.

                       Subtitle D--Other Responsibilities

    SEC. 5131. <<NOTE: 40 USC 1441.>>  RESPONSIBILITIES REGARDING
                              EFFICIENCY, SECURITY, AND PRIVACY OF
                              FEDERAL COMPUTER SYSTEMS.

        (a) Standards and Guidelines.--
                (1) Authority.--The Secretary of Commerce shall, on the
            basis of standards and guidelines developed by the National
            Institute of Standards and Technology pursuant to paragraphs (2)
            and (3) of section 20(a) of the National Institute of Standards
            and Technology Act (15 U.S.C. 278g-3(a)), promulgate standards
            and guidelines pertaining to Federal computer systems. The
            Secretary shall make such standards compulsory and binding to
            the extent to which the Secretary determines necessary to
            improve the efficiency of operation or security and privacy of
            Federal computer systems. The President may disapprove or modify
            such standards and guidelines if the President determines such
            action to be in the public interest. The President's authority
            to disapprove or modify such standards and guidelines may not be
            delegated. <<NOTE: Federal Register, publication.>>  Notice of
            such disapproval or modification shall be published promptly in
            the Federal Register. Upon receiving notice of such disapproval
            or modification, the Secretary of Commerce shall immediately
            rescind or modify such standards or guidelines as directed by
            the President.

    [[Page 110 STAT. 688]]

                (2) Exercise of authority.--The authority conferred upon the
            Secretary of Commerce by this section shall be exercised subject
            to direction by the President and in coordination with the
            Director to ensure fiscal and policy consistency.

        (b) Application of More Stringent Standards.--The head of a Federal
    agency may employ standards for the cost-effective security and privacy
    of sensitive information in a Federal computer system within or under
    the supervision of that agency that are more stringent than the
    standards promulgated by the Secretary of Commerce under this section,
    if such standards contain, at a minimum, the provisions of those
    applicable standards made compulsory and binding by the Secretary of
    Commerce.
        (c) Waiver of Standards.--The standards determined under subsection
    (a) to be compulsory and binding may be waived by the Secretary of
    Commerce in writing upon a determination that compliance would adversely
    affect the accomplishment of the mission of an operator of a Federal
    computer system, or cause a major adverse financial impact on the
    operator which is not offset by Government-wide savings. The Secretary
    may delegate to the head of one or more Federal agencies authority to
    waive such standards to the extent to which the Secretary determines
    such action to be necessary and desirable to allow for timely and
    effective implementation of Federal computer system standards. The head
    of such agency may redelegate such authority only to a Chief Information
    Officer designated pursuant to section 3506 of title 44, United States
    Code. <<NOTE: Federal Register, publication.>>  Notice of each such
    waiver and delegation shall be transmitted promptly to Congress and
    shall be published promptly in the Federal Register.

        (d) Definitions.--In this section, the terms ``Federal computer
    system'' and ``operator of a Federal computer system'' have the meanings
    given such terms in section 20(d) of the National Institute of Standards
    and Technology Act (15 U.S.C. 278g-3(d)).
        (e) Technical Amendments.--Chapter 35 of title 44, United States
    Code, is amended--
                (1) in section 3504(g)--
                        (A) in paragraph (2), by striking out ``the Computer
                    Security Act of 1987 (40 U.S.C. 759 note)'' and
                    inserting in lieu thereof ``sections 20 and 21 of the
                    National Institute of Standards and Technology Act (15
                    U.S.C. 278g-3 and 278g-4), section 5131 of the
                    Information Technology Management Reform Act of 1996,
                    and sections 5 and 6 of the Computer Security Act of
                    1987 (40 U.S.C. 759 note)''; and
                        (B) in paragraph (3), by striking out ``the Computer
                    Security Act of 1987 (40 U.S.C. 759 note)'' and
                    inserting in lieu thereof ``the standards and guidelines
                    promulgated under section 5131 of the Information
                    Technology Management Reform Act of 1996 and sections 5
                    and 6 of the Computer Security Act of 1987 (40 U.S.C.
                    759 note)''; and
                (2) in section 3518(d), by striking out ``Public Law 89-306
            on the Administrator of the General Services Administration, the
            Secretary of Commerce, or'' and inserting in lieu thereof
            ``section 5131 of the Information Technology Management Reform
            Act of 1996 and the Computer Security Act of 1987 (40 U.S.C. 759
            note) on the Secretary of Commerce or''.

    [[Page 110 STAT. 689]]

    SEC. 5132. <<NOTE: 40 USC 1442.>>  SENSE OF CONGRESS.

        It is the sense of Congress that, during the next five-year period
    beginning with 1996, executive agencies should achieve each year at
    least a 5 percent decrease in the cost (in constant fiscal year 1996
    dollars) that is incurred by the agency for operating and maintaining
    information technology, and each year a 5 percent increase in the
    efficiency of the agency operations, by reason of improvements in
    information resources management by the agency.

                      Subtitle E--National Security Systems

    SEC. 5141. <<NOTE: 40 USC 1451.>>  APPLICABILITY TO NATIONAL SECURITY
                SYSTEMS.

        (a) In General.--Except as provided in subsection (b), this title
    does not apply to national security systems.
        (b) Exceptions.--
                (1) In general.--Sections 5123, 5125, and 5126 apply to
            national security systems.
                (2) Capital planning and investment control.--The heads of
            executive agencies shall apply sections 5112 and 5122 to
            national security systems to the extent practicable.
                (3) Performance and results of information technology
            investments.--(A) Subject to subparagraph (B), the heads of
            executive agencies shall apply section 5113 to national security
            systems to the extent practicable.
                (B) National security systems shall be subject to section
            5113(b)(5) except for subparagraph (B)(iv) of that section.

    SEC. 5142. <<NOTE: 40 USC 1452.>>  NATIONAL SECURITY SYSTEM DEFINED.

        (a) Definition.--In this subtitle, the term ``national security
    system'' means any telecommunications or information system operated by
    the United States Government, the function, operation, or use of which--
                (1) involves intelligence activities;
                (2) involves cryptologic activities related to national
            security;
                (3) involves command and control of military forces;
                (4) involves equipment that is an integral part of a weapon
            or weapons system; or
                (5) subject to subsection (b), is critical to the direct
            fulfillment of military or intelligence missions.

        (b) Limitation.--Subsection (a)(5) does not include a system that is
    to be used for routine administrative and business applications
    (including payroll, finance, logistics, and personnel management
    applications).

          TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

    SEC. 5201. <<NOTE: 40 USC 1461.>>  PROCUREMENT PROCEDURES.

        The Federal Acquisition Regulatory Council shall ensure that, to the
    maximum extent practicable, the process for acquisition of information
    technology is a simplified, clear, and understandable process that
    specifically addresses the management of risk,

    [[Page 110 STAT. 690]]

    incremental acquisitions, and the need to incorporate commercial
    information technology in a timely manner.
    SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

        (a) Policy.--The Office of Federal Procurement Policy Act (41 U.S.C.
    401 et seq.) is amended by adding at the end the following new section:

    ``SEC. 35. <<NOTE: 41 USC 434.>>  MODULAR CONTRACTING FOR INFORMATION
                TECHNOLOGY.

        ``(a) In General.--The head of an executive agency should, to the
    maximum extent practicable, use modular contracting for an acquisition
    of a major system of information technology.
        ``(b) Modular Contracting Described.--Under modular contracting, an
    executive agency's need for a system is satisfied in successive
    acquisitions of interoperable increments. Each increment complies with
    common or commercially accepted standards applicable to information
    technology so that the increments are compatible with other increments
    of information technology comprising the system.
        ``(c) Implementation.--The Federal Acquisition Regulation shall
    provide that--
                ``(1) under the modular contracting process, an acquisition
            of a major system of information technology may be divided into
            several smaller acquisition increments that--
                        ``(A) are easier to manage individually than would
                    be one comprehensive acquisition;
                        ``(B) address complex information technology
                    objectives incrementally in order to enhance the
                    likelihood of achieving workable solutions for
                    attainment of those objectives;
                        ``(C) provide for delivery, implementation, and
                    testing of workable systems or solutions in discrete
                    increments each of which comprises a system or solution
                    that is not dependent on any subsequent increment in
                    order to perform its principal functions; and
                        ``(D) provide an opportunity for subsequent
                    increments of the acquisition to take advantage of any
                    evolution in technology or needs that occur during
                    conduct of the earlier increments;
                ``(2) a contract for an increment of an information
            technology acquisition should, to the maximum extent
            practicable, be awarded within 180 days after the date on which
            the solicitation is issued and, if the contract for that
            increment cannot be awarded within such period, the increment
            should be considered for cancellation; and
                ``(3) the information technology provided for in a contract
            for acquisition of information technology should be delivered
            within 18 months after the date on which the solicitation
            resulting in award of the contract was issued.''.

        (b) Clerical Amendment.--The table of contents in section 1(b) of
    such Act is amended by inserting after the item relating to section 34
    the following new item:

    ``Sec. 35. Modular contracting for information technology.''.

    [[Page 110 STAT. 691]]

          TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                      Subtitle A--Conduct of Pilot Programs

    SEC. 5301. <<NOTE: 40 USC 1471.>>  AUTHORITY TO CONDUCT PILOT PROGRAMS.

        (a) In General.--
                (1) Purpose.--The Administrator for Federal Procurement
            Policy (hereinafter referred to as the ``Administrator''), in
            consultation with the Administrator for the Office of
            Information and Regulatory Affairs, may conduct pilot programs
            in order to test alternative approaches for acquisition of
            information technology by executive agencies.
                (2) Multiagency, multi-activity conduct of each program.--
            Except as otherwise provided in this title, each pilot program
            conducted under this title shall be carried out in not more than
            two procuring activities in each of the executive agencies that
            are designated by the
    Administrator in accordance with this title to carry out the pilot
    program. The head of each designated executive agency shall, with the
    approval of the Administrator, select the procuring activities of the
    executive agency that are to participate in the test and shall designate
    a procurement testing official who shall be responsible for the conduct
    and evaluation of the pilot program within the executive agency.

        (b) Limitations.--
                (1) Number.--Not more than two pilot programs may be
            conducted under the authority of this title, including one pilot
            program each pursuant to the requirements of sections 5311 and
            5312.
                (2) Amount.--The total amount obligated for contracts
            entered into under the pilot programs conducted under the
            authority of this title may not exceed $750,000,000. The
            Administrator shall monitor such contracts and ensure that
            contracts are not entered into in violation of the limitation in
            the preceding sentence.

        (c) Period of Programs.--
                (1) In general.--Subject to paragraph (2), any pilot program
            may be carried out under this title for the period, not in
            excess of five years, that is determined by the Administrator as
            being sufficient to establish reliable results.
                (2) Continuing validity of contracts.--A contract entered
            into under the pilot program before the expiration of that
            program shall remain in effect according to the terms of the
            contract after the expiration of the program.

    SEC. 5302. <<NOTE: 40 USC 1472.>>  EVALUATION CRITERIA AND PLANS.

        (a) Measurable Test Criteria.--The head of each executive agency
    conducting a pilot program under section 5301 shall establish, to the
    maximum extent practicable, measurable criteria for evaluating the
    effects of the procedures or techniques to be tested under the program.
        (b) Test Plan.--Before a pilot program may be conducted under
    section 5301, the Administrator shall submit to Congress a detailed

    [[Page 110 STAT. 692]]

    test plan for the program, including a detailed description of the
    procedures to be used and a list of any regulations that are to be
    waived.

    SEC. 5303. <<NOTE: 40 USC 1473.>>  REPORT.

        (a) Requirement.--Not later than 180 days after the completion of a
    pilot program under this title, the Administrator shall--
                (1) submit to the Director a report on the results and
            findings under the program; and
                (2) provide a copy of the report to Congress.

        (b) Content.--The report shall include the following:
                (1) A detailed description of the results of the program, as
            measured by the criteria established for the program.
                (2) A discussion of any legislation that the Administrator
            recommends, or changes in regulations that the Administrator
            considers necessary, in order to improve overall information
            resources management within the Federal Government.

    SEC. 5304. <<NOTE: 40 USC 1474.>>  RECOMMENDED LEGISLATION.

        If the Director determines that the results and findings under a
    pilot program under this title indicate that legislation is necessary or
    desirable in order to improve the process for acquisition of information
    technology, the Director shall transmit the Director's recommendations
    for such legislation to Congress.

    SEC. 5305. <<NOTE: 40 USC 1475.>>  RULE OF CONSTRUCTION.

        Nothing in this title shall be construed as authorizing the
    appropriation or obligation of funds for the pilot programs authorized
    under this title.

                       Subtitle B--Specific Pilot Programs

    SEC. 5311. <<NOTE: 40 USC 1491.>>  SHARE-IN-SAVINGS PILOT PROGRAM.

        (a) Requirement.--The Administrator may authorize the heads of two
    executive agencies to carry out a pilot program to test the feasibility
    of--
                (1) contracting on a competitive basis with a private sector
            source to provide the Federal Government with an information
            technology solution for improving mission-related or
            administrative processes of the Federal Government; and
                (2) paying the private sector source an amount equal to a
            portion of the savings derived by the Federal Government from
            any improvements in mission-related processes and administrative
            processes that result from implementation of the solution.

        (b) Limitations.--The head of an executive agency authorized to
    carry out the pilot program may, under the pilot program, carry out one
    project and enter into not more than five contracts for the project.

        (c) Selection of Projects.--The projects shall be selected by the
    Administrator, in consultation with the Administrator for the Office of
    Information and Regulatory Affairs.

    SEC. 5312. <<NOTE: 40 USC 1492.>>  SOLUTIONS-BASED CONTRACTING PILOT
                PROGRAM.

        (a) In General.--The Administrator may authorize the heads of any of
    the executive agencies, in accordance with subsection (d)(2), to carry
    out a pilot program to test the feasibility of using

    [[Page 110 STAT. 693]]

    solutions-based contracting for acquisition of information technology.
        (b) Solutions-Based Contracting Described.--For purposes of this
    section, solutions-based contracting is an acquisition method under
    which the acquisition objectives are defined by the Federal Government
    user of the technology to be acquired, a streamlined contractor
    selection process is used, and industry sources are allowed to provide
    solutions that attain the objectives effectively.
        (c) Process Requirements.--The Administrator shall require use of a
    process with the following aspects for acquisitions under the pilot
    program:
                (1) Acquisition plan emphasizing desired result.--
            Preparation of an acquisition plan that defines the functional
            requirements of the intended users of the information technology
            to be acquired, identifies the operational improvements to be
            achieved, and defines the performance
    measurements to be applied in determining whether the information
    technology acquired satisfies the defined requirements and attains the
    identified results.
                (2) Results-oriented statement of work.--Use of a statement
            of work that is limited to an expression of the end results or
            performance capabilities desired under the acquisition plan.
                (3) Small acquisition organization.--Assembly of a small
            acquisition organization consisting of the following:
                        (A) An acquisition management team, the members of
                    which are to be evaluated and rewarded under the pilot
                    program for contributions toward attainment of the
                    desired results identified in the acquisition plan.
                        (B) A small source selection team composed of
                    representatives of the specific mission or
                    administrative area to be supported by the information
                    technology to be acquired, together with a contracting
                    officer and persons with relevant expertise.
                (4) Use of source selection factors emphasizing source
            qualifications and costs.--Use of source selection factors that
            emphasize--
                        (A) the qualifications of the offeror, including
                    such factors as personnel skills, previous experience in
                    providing other private or public sector organizations
                    with solutions for attaining objectives similar to the
                    objectives of the acquisition, past contract
                    performance, qualifications of the proposed program
                    manager, and the proposed management plan; and
                        (B) the costs likely to be associated with the
                    conceptual approach proposed by the offeror.
                (5) Open communications with contractor community.--Open
            availability of the following information to potential offerors:
                        (A) The agency mission to be served by the
                    acquisition.
                        (B) The functional process to be performed by use of
                    information technology.
                        (C) The process improvements to be attained.
                (6) Simple solicitation.--Use of a simple solicitation that
            sets forth only the functional work description, the source
            selection factors to be used in accordance with paragraph (4),
            the required terms and conditions, instructions regarding submis

    [[Page 110 STAT. 694]]

            sion of offers, and the estimate of the Federal Government's
            budget for the desired work.
                (7) Simple proposals.--Submission of oral presentations and
            written proposals that are limited in size and scope and contain
            information on--
                        (A) the offeror's qualifications to perform the
                    desired work;
                        (B) past contract performance;
                        (C) the proposed conceptual approach; and
                        (D) the costs likely to be associated with the
                    proposed conceptual approach.
                (8) Simple evaluation.--Use of a simplified evaluation
            process, to be completed within 45 days after receipt of
            proposals, which consists of the following:
                        (A) Identification of the most qualified offerors
                    that are within the competitive range.
                        (B) Issuance of invitations for at least three and
                    not more than five of the identified offerors to make
                    oral presentations to, and engage in discussions with,
                    the evaluating personnel regarding, for each offeror--
                              (i) the qualifications of the offeror,
                          including how the qualifications of the offeror
                          relate to the approach proposed to be taken by the
                          offeror in the acquisition; and
                              (ii) the costs likely to be associated with
                          the approach.
                        (C) Evaluation of the qualifications of the
                    identified offerors and the costs likely to be
                    associated with the offerors' proposals on the basis of
                    submissions required under the process and any oral
                    presentations made by, and any discussions with, the
                    offerors.
                (9) Selection of most qualified offeror.--A selection
            process consisting of the following:
                        (A) Identification of the most qualified source, and
                    ranking of alternative sources, primarily on the basis
                    of the oral proposals, presentations, and discussions,
                    and written proposals submitted in accordance with
                    paragraph (7).
                        (B) Conduct for 30 to 60 days of a program
                    definition phase (funded, in the case of the source
                    ultimately awarded the contract, by the Federal
                    Government)--
                              (i) during which the selected source, in
                          consultation with one or more intended users,
                          develops a conceptual system design and technical
                          approach, defines logical phases for the project,
                          and estimates the total cost and the cost for each
                          phase; and
                              (ii) after which a contract for performance of
                          the work may be awarded to that source on the
                          basis of cost, the responsiveness, reasonableness,
                          and quality of the proposed performance, and a
                          sharing of risk and benefits between the source
                          and the Government.
                        (C) Conduct of as many successive program definition
                    phases with alternative sources (in the order ranked) as
                    is necessary in order to award a contract in accordance
                    with subparagraph (B).
                (10) System implementation phasing.--System implementation
            to be executed in phases that are tailored to

    [[Page 110 STAT. 695]]

            the solution, with various contract arrangements being used, as
            appropriate, for various phases and activities.
                (11) Mutual authority to terminate.--Authority for the
            Federal Government or the contractor to terminate the contract
            without penalty at the end of any phase defined for the project.
                (12) Time management discipline.--Application of a standard
            for awarding a contract within 105 to 120 days after issuance of
            the solicitation.

        (d) Pilot Program Design.--
                (1) Joint public-private working group.--The Administrator,
            in consultation with the Administrator for the Office of
            Information and Regulatory Affairs, shall establish a joint
            working group of Federal Government personnel and
            representatives of the information technology industry to design
            a plan for conduct of any pilot program carried out under this
            section.
                (2) Content of plan.--The plan shall provide for use of
            solutions-based contracting in the Department of Defense and not
            more than two other executive agencies for a total of--
                        (A) not more than 10 projects, each of which has an
                    estimated cost of between $25,000,000 and $100,000,000;
                    and
                        (B) not more than 10 projects, each of which has an
                    estimated cost of between $1,000,000 and $5,000,000, to
                    be set aside for small business concerns.
                (3) Complexity of projects.--(A) Subject to subparagraph
            (C), each acquisition project under the pilot program shall be
            sufficiently complex to provide for meaningful evaluation of the
            use of solutions-based contracting for acquisition of
            information technology for executive agencies.
                (B) In order for an acquisition project to satisfy the
            requirement in subparagraph (A), the solution for attainment of
            the executive agency's objectives under the project should not
            be obvious, but rather shall involve a need for some innovative
            development and systems integration.
                (C) An acquisition project should not be so extensive or
            lengthy as to result in undue delay in the evaluation of the use
            of solutions-based contracting.

        (e) Monitoring by GAO.--The Comptroller General of the United States
    shall--
                (1) monitor the conduct, and review the results, of
            acquisitions under the pilot program; and
                (2) <<NOTE: Reports.>>  submit to Congress periodic reports
            containing the views of the Comptroller General on the
            activities, results, and findings under the pilot program.

         TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

    SEC. 5401. <<NOTE: 40 USC 1501.>>  ON-LINE MULTIPLE AWARD SCHEDULE
                CONTRACTING.

        (a) Automation of Multiple Award Schedule Contracting.--In order to
    provide for the economic and efficient procurement of information
    technology and other commercial items, the Administrator of General
    Services shall provide through the Federal Acquisition Computer Network
    (in this section referred to as ``FACNET''), not later than January 1,
    1998, Government-wide on-line computer

    [[Page 110 STAT. 696]]

    access to information on products and services that are available for
    ordering under the multiple award schedules. If the Administrator
    determines it is not practicable to provide such access through FACNET,
    the Administrator shall provide such access through another automated
    system that has the capability to perform the functions listed in
    subsection (b)(1) and meets the requirement of subsection (b)(2).
        (b) Additional FACNET Functions.--(1) In addition to the functions
    specified in section 30(b) of the Office of Federal Procurement Policy
    Act (41 U.S.C. 426(b)), the FACNET architecture shall have the
    capability to perform the following functions:
                (A) Provide basic information on prices, features, and
            performance of all products and services available for ordering
            through the multiple award schedules.
                (B) Provide for updating that information to reflect changes
            in prices, features, and performance as soon as information on
            the changes becomes available.
                (C) Enable users to make on-line computer comparisons of the
            prices, features, and performance of similar products and
            services offered by various vendors.

        (2) The FACNET architecture shall be used to place orders under the
    multiple award schedules in a fiscal year for an amount equal to at
    least 60 percent of the total amount spent for all orders under the
    multiple award schedules in that fiscal year.
        (c) Streamlined Procedures.--
                (1) Pilot program.--Upon certification by the Administrator
            of General Services that the FACNET architecture meets the
            requirements of subsection (b)(1) and was used as required by
            subsection (b)(2) in the fiscal year preceding the fiscal year
            in which the certification is made, the Administrator for
            Federal Procurement Policy may establish a pilot program to test
            streamlined procedures for the procurement of information
            technology products and services available for ordering through
            the multiple award schedules.
                (2) Applicability to multiple award schedule contracts.--
            Except as provided in paragraph (4), the pilot program shall be
            applicable to all multiple award schedule contracts for the
            purchase of information technology and shall test the following
            procedures:
                        (A) A procedure under which negotiation of the terms
                    and conditions for a covered multiple award schedule
                    contract is limited to terms and conditions other than
                    price.
                        (B) A procedure under which the vendor establishes
                    the prices under a covered multiple award schedule
                    contract and may adjust those prices at any time in the
                    discretion of the vendor.
                        (C) A procedure under which a covered multiple award
                    schedule contract is awarded to any responsible offeror
                    that--
                              (i) has a suitable record of past performance,
                          which may include past performance on multiple
                          award schedule contracts;
                              (ii) agrees to terms and conditions that the
                          Administrator determines as being required by law
    or as being appropriate for the purchase of commercial items; and

    [[Page 110 STAT. 697]]

                              (iii) agrees to establish and update prices,
                          features, and performance and to accept orders
                          electronically through the automated system
                          established pursuant to subsection (a).
                (3) Comptroller general review and report.--(A) Not later
            than three years after the date on which the pilot program is
            established, the Comptroller General of the United States shall
            review the pilot program and report to the Congress on the
            results of the pilot program.
                (B) The report shall include the following:
                        (i) An evaluation of the extent to which there is
                    competition for the orders placed under the pilot
                    program.
                        (ii) The effect that the streamlined procedures
                    under the pilot program have on prices charged under
                    multiple award schedule contracts.
                        (iii) The effect that such procedures have on
                    paperwork requirements for multiple award schedule
                    contracts and orders.
                        (iv) The impact of the pilot program on small
                    businesses and socially and economically disadvantaged
                    small businesses.
                (4) Withdrawal of schedule or portion of schedule from pilot
            program.--The Administrator may withdraw a multiple award
            schedule or portion of a schedule from the pilot program if the
            Administrator determines that (A) price competition is not
            available under such schedule or portion thereof, or (B) the
            cost to the Government for that schedule or portion thereof for
            the previous year was higher than it would have been if the
            contracts for such schedule or portion thereof had been awarded
            using procedures that would apply if the pilot program were not
            in effect. <<NOTE: Notification.>>  The Administrator shall
            notify Congress at least 30 days before the date on which the
            Administrator withdraws a schedule or portion thereof under this
            paragraph. The authority under this paragraph may not be
            delegated.
                (5) Termination of pilot program.--Unless reauthorized by
            law, the authority of the Administrator to award contracts under
            the pilot program shall expire four years after the date on
            which the pilot program is established. Contracts entered into
            before the authority expires shall remain in effect in
            accordance with their terms notwithstanding the expiration of
            the authority to award new contracts under the pilot program.

        (d) Definition.--In this section, the term ``FACNET'' means the
    Federal Acquisition Computer Network established under section 30 of the
    Office of Federal Procurement Policy Act (41 U.S.C. 426).
    SEC. 5402. <<NOTE: 40 USC 1502.>>  IDENTIFICATION OF EXCESS AND
                              SURPLUS COMPUTER EQUIPMENT.

        Not later than six months after the date of the enactment of this
    Act, the head of an executive agency shall inventory all computer
    equipment under the control of that official. After completion of the
    inventory, the head of the executive agency shall maintain, in
    accordance with title II of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 481 et seq.), an inventory of any such
    equipment that is excess or surplus property.

    [[Page 110 STAT. 698]]

    SEC. 5403. <<NOTE: 40 USC 1503.>>  ACCESS OF CERTAIN INFORMATION
                              IN INFORMATION SYSTEMS TO THE DIRECTORY
                              ESTABLISHED UNDER SECTION 4101 OF TITLE
                              44, UNITED STATES CODE.

        Notwithstanding any other provision of this division, if in
    designing an information technology system pursuant to this division,
    the head of an executive agency determines that a purpose of the system
    is to disseminate information to the public, then the head of such
    executive agency shall reasonably ensure that an index of information
    disseminated by such system is included in the directory created
    pursuant to section 4101 of title 44, United States Code. Nothing in
    this section authorizes the dissemination of information to the public
    unless otherwise authorized.

       TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

    SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

        Title 31, United States Code, is amended as follows:
                (1) Section 3553(b)(2)(A) is amended by striking out ``35''
            and inserting in lieu thereof ``30''.
                (2) Section 3554 is amended--
                        (A) in subsection (a)(1), by striking out ``125''
                    and inserting in lieu thereof ``100''; and
                        (B) in subsection (e)--
                              (i) in paragraph (1), by striking out
                          ``Government Operations'' and inserting in lieu
                          thereof ``Government Reform and Oversight''; and
                              (ii) in paragraph (2), by striking out ``125''
                          and inserting in lieu thereof ``100''.
    SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION OF
                              CHALLENGE TO CONTRACTING ACTION.

        (a) In General.--Section 1558 of title 31, United States Code, is
    amended--
                (1) in the first sentence of subsection (a)--
                        (A) by inserting ``or other action referred to in
                    subsection (b)'' after ``protest'' the first place it
                    appears;
                        (B) by striking out ``90 working days'' and
                    inserting in lieu thereof ``100 days''; and
                        (C) by inserting ``or other action'' after
                    ``protest'' the second place it appears; and
                (2) by striking out subsection (b) and inserting in lieu
            thereof the following:

        ``(b) Subsection (a) applies with respect to--
                ``(1) any protest filed under subchapter V of chapter 35 of
            this title; or
                ``(2) an action commenced under administrative procedures or
            for a judicial remedy if--
                        ``(A) the action involves a challenge to--
                              ``(i) a solicitation for a contract;
                              ``(ii) a proposed award of a contract;
                              ``(iii) an award of a contract; or

    [[Page 110 STAT. 699]]

                              ``(iv) the eligibility of an offeror or
                          potential offeror for a contract or of the
                          contractor awarded the contract; and
                        ``(B) commencement of the action delays or prevents
                    an executive agency from making an award of a contract
                    or proceeding with a procurement.''.

        (b) Conforming Amendment.--The heading of such section is amended to
    read as follows:
    ``Sec. 1558. Availability of funds following resolution of a
                      formal protest or other challenge''.

        (c) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 15 of title 31, United
    States Code, is amended to read as follows:

    ``1558. Availability of funds following resolution of a formal protest
               or other challenge.''.

                  TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

    SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

        (a) Protest File.--Section 2305(e) is amended by striking out
    paragraph (3).
        (b) Multiyear Contracts.--Section 2306b of such title is amended--
                (1) by striking out subsection (k); and
                (2) by redesignating subsection (l) as subsection (k).

        (c) Law Inapplicable to Procurement of Information Technology.--
    Section 2315 of title 10, United States Code, is amended by striking out
    ``Section 111'' and all that follows through ``use of equipment or
    services if,'' and inserting in lieu thereof the following: ``For the
    purposes of the Information Technology Management Reform Act of 1996,
    the term `national security systems' means those telecommunications and
    information systems operated by the Department of Defense, the
    functions, operation or use of which''.

    SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

        (a) References to Brooks Automatic Data Processing Act.--Section 612
    of title 28, United States Code, is amended--
                (1) in subsection (f), by striking out ``section 111 of the
            Federal Property and Administrative Services Act of 1949 (40
            U.S.C. 759)'' and inserting in lieu thereof ``the provisions of
            law, policies, and regulations applicable to executive agencies
            under the Information Technology Management Reform Act of
            1996'';
                (2) in subsection (g), by striking out ``sections 111 and
            201 of the Federal Property and Administrative Services Act of
            1949 (40 U.S.C. 481 and 759)'' and inserting in lieu thereof
            ``section 201 of the Federal Property and Administrative
            Services Act of 1949 (40 U.S.C. 481)'';
                (3) by striking out subsection (l); and
                (4) by redesignating subsection (m) as subsection (l).

        (b) References to Automatic Data Processing.--Section 612 of title
    28, United States Code, is further amended--
                (1) in the heading, by striking out the second word and
            inserting in lieu thereof ``Information Technology'';

    [[Page 110 STAT. 700]]

                (2) in subsection (a), by striking out ``Judiciary
            Automation Fund'' and inserting in lieu thereof ``Judiciary
            Information Technology Fund''; and
                (3) by striking out ``automatic data processing'' and
            inserting in lieu thereof ``information technology'' each place
            it appears in subsections (a), (b), (c)(2), (e), (f), and
            (h)(1).

    SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

        Section 3552 of title 31, United States Code, is amended by striking
    out the second sentence.

    SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

        Section 310 of title 38, United States Code, is amended to read as
    follows:

    ``Sec. 310. Chief Information Officer

        ``(a) The Chief Information Officer for the Department is designated
    pursuant to section 3506(a)(2) of title 44.
        ``(b) The Chief Information Officer performs the duties provided for
    chief information officers of executive agencies under chapter 35 of
    title 44 and the Information Technology Management Reform Act of
    1996.''.
    SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING TO
                              PAPERWORK REDUCTION.

        (a) Definition.--Section 3502 of title 44, United States Code, is
    amended by striking out paragraph (9) and inserting in lieu thereof the
    following:
                ``(9) the term `information technology' has the meaning
            given that term in section 5002 of the Information Technology
            Management Reform Act of 1996 but does not include national
            security systems as defined in section 5142 of that Act;''.

        (b) Development of Standards and Guidelines by National Institute of
    Standards and Technology.--Section 3504(h)(1)(B) of such title is
    amended by striking out ``section 111(d) of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 759(d))'' and inserting
    in lieu thereof ``section 5131 of the Information Technology Management
    Reform Act of 1996''.
        (c) Compliance With Directives.--Section 3504(h)(2) of such title is
    amended by striking out ``sections 110 and 111 of the Federal Property
    and Administrative Services Act of 1949 (40 U.S.C. 757 and 759)'' and
    inserting in lieu thereof ``the Information Technology Management Reform
    Act of 1996 and directives issued under section 110 of the Federal
    Property and Administrative Services Act of 1949 (40 U.S.C. 757)''.
        (d) Collection of Information.--Section 3507(j)(2) of such title is
    amended by striking out ``90 days'' in the second sentence and inserting
    in lieu thereof ``180 days''.

    SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

        Section 40112(a) of title 49, United States Code, is amended by
    striking out ``or a contract to purchase property to which section 111
    of the Federal Property and Administrative Services Act of 1949 (40
    U.S.C. 759) applies''.

    [[Page 110 STAT. 701]]

    SEC. 5607. OTHER LAWS.

        (a) National Institute of Standards and Technology Act.--Section 20
    of the National Institute of Standards and Technology Act (15 U.S.C.
    278g-3) is amended--
                (1) in subsection (a)--
                        (A) by striking out ``section 3502(2) of title 44''
                    each place it appears in paragraphs (2) and (3)(A) and
                    inserting in lieu thereof ``section 3502(9) of title
                    44''; and
                        (B) in paragraph (4), by striking out ``section
                    111(d) of the Federal Property and Administrative
                    Services Act of 1949'' and inserting in lieu thereof
                    ``section 5131 of the Information Technology Management
                    Reform Act of 1996'';
                (2) in subsection (b)--
                        (A) by striking out paragraph (2);
                        (B) in paragraph (3), by striking out ``section
                    111(d) of the Federal Property and Administrative
                    Services Act of 1949'' and inserting in lieu thereof
                    ``section 5131 of the Information Technology Management
                    Reform Act of 1996''; and
                        (C) by redesignating paragraphs (3), (4), (5), and
                    (6) as paragraphs (2), (3), (4), and (5); and
                (3) in subsection (d)--
                        (A) in paragraph (1)(B)(v), by striking out ``as
                    defined'' and all that follows and inserting in lieu
                    thereof a semicolon; and
                        (B) in paragraph (2)--
                              (i) by striking out ``system'--'' and all that
                          follows through ``means'' in subparagraph (A) and
                          inserting in lieu thereof ``system' means''; and
                              (ii) by striking out ``; and'' at the end of
                          subparagraph (A) and all that follows through the
                          end of subparagraph (B) and inserting in lieu
                          thereof a semicolon.

        (b) Computer Security Act of 1987.--
                (1) Purposes.--Section 2(b)(2) of the Computer Security Act
            of 1987 (Public Law 100-235; 101 Stat. 1724) <<NOTE: 40 USC 759
            note.>>  is amended by striking out ``by amending section 111(d)
            of the Federal Property and Administrative Services Act of 1949
            (40 U.S.C. 759(d))''.
                (2) Security plan.--Section 6(b) of such Act (101 Stat.
            1729; 40 U.S.C. 759 note) is amended--
                        (A) by striking out ``Within one year after the date
                    of enactment of this Act, each such agency shall,
                    consistent with the standards, guidelines, policies, and
                    regulations prescribed pursuant to section 111(d) of the
                    Federal Property and Administrative Services Act of
                    1949,'' and inserting in lieu thereof ``Each such agency
                    shall, consistent with the standards, guidelines,
                    policies, and regulations prescribed pursuant to section
                    5131 of the Information Technology Management Reform Act
                    of 1996,''; and
                        (B) by striking out ``Copies'' and all that follows
                    through ``Code.''.

        (c) Federal Property and Administrative Services Act of 1949.--
    Section 303B(h) of the Federal Property and Administrative Services Act
    of 1949 (41 U.S.C. 253b(h)) is amended by striking out paragraph (3).

    [[Page 110 STAT. 702]]

        (d) Office of Federal Procurement Policy Act.--Section 6(h)(1) of
    the Office of Federal Procurement Policy Act (41 U.S.C. 405(h)(1)) is
    amended by striking out ``of automatic data processing and
    telecommunications equipment and services or''.
        (e) National Energy Conservation Policy Act.--Section 801(b)(3) of
    the National Energy Conservation Policy Act (42 U.S.C. 8287(b)(3)) is
    amended by striking out the second sentence.
        (f) Central Intelligence Agency Act of 1949.--Section 3 of the
    Central Intelligence Agency Act of 1949 (50 U.S.C. 403c) is amended by
    striking out subsection (e).

    SEC. 5608. CLERICAL AMENDMENTS.

        (a) Federal Property and Administrative Services Act of 1949.--The
    table of contents in section 1(b) of the Federal Property and
    Administrative Services Act of 1949 is amended by striking out the item
    relating to section 111.
        (b) Title 38, United States Code.--The table of sections at the
    beginning of chapter 3 of title 38, United States Code, is amended by
    striking out the item relating to section 310 and inserting in lieu
    thereof the following:

    ``310. Chief Information Officer.''.

        TITLE LVII <<NOTE: 40 USC 1401 note.>> --EFFECTIVE DATE, SAVINGS
    PROVISIONS, AND RULES OF CONSTRUCTION

    SEC. 5701. EFFECTIVE DATE.

        This division and the amendments made by this division shall take
    effect 180 days after the date of the enactment of this Act.

    SEC. 5702. SAVINGS PROVISIONS.

        (a) Regulations, Instruments, Rights, and Privileges.--All rules,
    regulations, contracts, orders, determinations, permits, certificates,
    licenses, grants, and privileges--
                (1) which have been issued, made, granted, or allowed to
            become effective by the Administrator of General Services or the
            General Services Board of Contract Appeals, or by a court of
            competent jurisdiction, in connection with an acquisition
            activity carried out under section 111 of the Federal Property
            and Administrative Services Act of 1949 (40 U.S.C. 759), and
                (2) which are in effect on the effective date of this
            division,

    shall continue in effect according to their terms until modified,
    terminated, superseded, set aside, or revoked in accordance with law by
    the Director or any other authorized official, by a court of competent
    jurisdiction, or by operation of law.
        (b) Proceedings.--
                (1) Proceedings generally.--This division and the amendments
            made by this division shall not affect any proceeding, including
            any proceeding involving a claim, application, or protest in
            connection with an acquisition activity carried out under
            section 111 of the Federal Property and Administrative Services
            Act of 1949 (40 U.S.C. 759) that is pending before the
            Administrator of General Services or the General Services Board
            of Contract Appeals on the effective date of this division.

    [[Page 110 STAT. 703]]

                (2) Orders.--Orders may be issued in any such proceeding,
            appeals may be taken therefrom, and payments may be made
            pursuant to such orders, as if this division had not been
            enacted. An order issued in any such proceeding shall continue
            in effect until modified, terminated, superseded, or revoked in
            accordance with law by the Director or any other authorized
            official, by a court of competent jurisdiction, or by operation
            of law.
                (3) Discontinuance or modification of proceedings not
            prohibited.--Nothing in this subsection prohibits the
            discontinuance or modification of any such proceeding under the
            same terms and conditions and to the same extent that such
            proceeding could have been discontinued or modified if this Act
            had not been enacted.
                (4) Other authority and prohibition.--Section 1558(a) of
            title 31, United States Code, and the second sentence of section
            3552 of such title shall continue to apply with respect to a
            protest process in accordance with this subsection.
                (5) Regulations for transfer of proceedings.--The Director
            may prescribe regulations providing for the orderly transfer of
            proceedings continued under paragraph (1).

        (c) Standards and Guidelines for Federal Computer Systems.--
    Standards and guidelines that are in effect for Federal computer systems
    under section 111(d) of the Federal Property and Administrative Services
    Act of 1949 (40 U.S.C. 759(d)) on the day before the effective date of
    this division shall remain in effect until modified, terminated,
    superseded, revoked, or disapproved under the authority of section 5131
    of this Act.

    SEC. 5703. RULES OF CONSTRUCTION.

        (a) Relationship to Title 44, United States Code.--Nothing in this
    division shall be construed to amend, modify, or supersede any provision
    of title 44, United States Code, other than chapter 35 of such title.
        (b) Relationship to Computer Security Act of 1987.--Nothing in this
    division shall affect the limitations on authority that is provided for
    in the administration of the Computer Security Act of 1987 (Public Law
    100-235) and the amendments made by such Act.

        Approved February 10, 1996.

    LEGISLATIVE HISTORY--S. 1124 (H.R. 1530) (S. 1026):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 104-131 (Comm. on National Security) and 104-406
    (Comm. of Conference), both accompanying H.R. 1530, and 104-450 (Comm.
    of Conference).
    SENATE REPORTS: No. 104-112 accompanying S. 1026 (Comm. on Armed
    Services).
    CONGRESSIONAL RECORD:
                                                            Vol. 141 (1995):
                                        Sept. 6, considered and passed
                                            Senate.
                                                            Vol. 142 (1996):
                                        Jan. 5, considered and passed House,
                                            amended, in lieu of H.R. 1530.
                                        Jan. 24, House agreed to conference
                                            report.
                                        Jan. 26, Senate agreed to conference
                                            report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
                Feb. 10, Presidential statement.

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