[104th Congress Public Law 106] [From the U.S. Government Printing 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 13