    [104th Congress Public Law 201]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ201.104]

    [[Page 2421]]

             NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

    [[Page 110 STAT. 2422]]

    Public Law 104-201
    104th Congress

                                     An Act

    To authorize appropriations for fiscal year 1997 for military activities
                                     of the
       Department of Defense, for military construction, and for defense
    activities of the Department of Energy, to prescribe personnel strengths
            for such fiscal year for the Armed Forces, and for other
               purposes. <<NOTE: Sept. 23, 1996 -  [H.R. 3230]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in <<NOTE: National Defense Authorization Act
    for Fiscal Year 1997.>>  Congress assembled,

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``National Defense Authorization Act
    for Fiscal Year 1997''.

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

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

        (b) Table of Contents.--The table of contents for this Act is as
    follows:
    Sec. 1. Short title.
    Sec. 2. Organization of Act into divisions; table of contents.
    Sec. 3. Congressional defense committees defined.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

    Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior
                        helicopters.
    Sec. 112. Multiyear procurement authority for Army programs.
    Sec. 113. Bradley TOW 2 Test Program sets.

                            Subtitle C--Navy Programs

    Sec. 121. Nuclear attack submarine programs.
    Sec. 122. Arleigh Burke class destroyer program.
    Sec. 123. EA-6B aircraft reactive jammer program.
    Sec. 124. T-39N trainer aircraft for the Navy.
    Sec. 125. Penguin missile program.

    [[Page 110 STAT. 2423]]

                         Subtitle D--Air Force Programs

    Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
    Sec. 132. Modification to multiyear procurement authority for C-17
                        aircraft program.

                            Subtitle E--Other Matters

    Sec. 141. Assessments of modernization priorities of the Reserve
                        components.
    Sec. 142. Destruction of existing stockpile of lethal chemical agents
                        and munitions.
    Sec. 143. Extension of authority to carry out Armament Retooling and
                        Manufacturing Support Initiative.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Dual-use technology programs.
    Sec. 204. Defense Special Weapons Agency.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Space launch modernization.
    Sec. 212. Space-Based Infrared System program.
    Sec. 213. Clementine 2 micro-satellite development program.
    Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
    Sec. 215. Live-fire survivability testing of F-22 aircraft.
    Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance
                        aircraft.
    Sec. 217. Cost analysis of F-22 aircraft program.
    Sec. 218. F-22 aircraft program reports.
    Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
    Sec. 220. Joint Advanced Strike Technology (JAST) program.
    Sec. 221. Unmanned aerial vehicles.
    Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
    Sec. 223. Cyclone class patrol craft self-defense.
    Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber
                        Optic
                        Guided Missile (EFOG-M) system.
    Sec. 225. Hydra-70 rocket product improvement program.
    Sec. 226. Federally funded research and development centers.
    Sec. 227. Demilitarization of conventional munitions, rockets, and
                        explosives.
    Sec. 228. Research activities of the Defense Advanced Research Projects
                        Agency relating to chemical and biological warfare
                        defense technology.
    Sec. 229. Certification of capability of United States to prevent
                        illegal importation of nuclear, biological, or
                        chemical weapons.
    Sec. 230. Nonlethal weapons and technologies programs.
    Sec. 231. Counterproliferation support program.

                 Subtitle C--Ballistic Missile Defense Programs

    Sec. 241. Funding for ballistic missile defense programs for fiscal year
                        1997.
    Sec. 242. Certification of capability of United States to defend against
                        single
                        ballistic missile.
    Sec. 243. Report on ballistic missile defense and proliferation.
    Sec. 244. Revision to annual report on ballistic missile defense
                        program.
    Sec. 245. Report on Air Force National Missile Defense Plan.
    Sec. 246. Capability of National Missile Defense system.
    Sec. 247. Actions to limit adverse effects on private sector employment
                        of establishment of National Missile Defense Joint
                        Program Office.
    Sec. 248. ABM Treaty defined.

                            Subtitle D--Other Matters

    Sec. 261. Maintenance and repair at Air Force installations.
    Sec. 262. Report relating to Small Business Innovation Research Program.
    Sec. 263. Amendment to University Research Initiative Support program.
    Sec. 264. Amendments to Defense Experimental Program To Stimulate
                        Competitive Research.
    Sec. 265. Elimination of report on the use of competitive procedures for
                        the award of certain contracts to colleges and
                        universities.
    Sec. 266. Pilot program for transfer of defense technology information
                        to private industry.
    Sec. 267. Research under transactions other than contracts and grants.
    Sec. 268. Desalting technologies.
    Sec. 269. Evaluation of digital video network equipment used in Olympic
                        games.

    [[Page 110 STAT. 2424]]

    Sec. 270. Annual joint warfighting science and technology plan.

             Subtitle E--National Oceanographic Partnership Program

    Sec. 281. Findings.
    Sec. 282. National Oceanographic Partnership Program.

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 305. Civil Air Patrol Corporation.
    Sec. 306. Availability of additional funds for antiterrorism activities.
    Sec. 307. Nonlethal weapons capabilities.
    Sec. 308. SR-71 contingency reconnaissance force.

                       Subtitle B--Depot-Level Activities

    Sec. 311. Extension of authority for aviation depots and naval shipyards
                        to engage in defense-related production and
                        services.
    Sec. 312. Test programs for modernization-through-spares.

                      Subtitle C--Environmental Provisions

    Sec. 321. Defense contractors covered by requirement for reports on
                        contractor reimbursement costs for response actions.
    Sec. 322. Establishment of separate environmental restoration accounts
                        for each military department.
    Sec. 323. Payment of stipulated penalties assessed under CERCLA.
    Sec. 324. Shipboard solid waste control.
    Sec. 325. Authority to develop and implement land use plans for defense
                        environmental restoration program.
    Sec. 326. Pilot program to test alternative technology for limiting air
                        emissions during shipyard blasting and coating
                        operations.
    Sec. 327. Agreements for services of other agencies in support of
                        environmental technology certification.
    Sec. 328. Repeal of redundant notification and consultation requirements
                        regarding remedial investigations and feasibility
                        studies at certain installations to be closed under
                        the base closure laws.
    Sec. 329. Authority for agreements with Indian tribes for services under
                        environmental restoration program.
    Sec. 330. Authority to withhold listing of Federal facilities on
                        National Priorities List.
    Sec. 331. Clarification of meaning of uncontaminated property for
                        purposes of transfer by the United States.
    Sec. 332. Conservation and cultural activities.
    Sec. 333. Navy program to monitor ecological effects of organotin.
    Sec. 334. Authority to transfer contaminated Federal property before
                        completion of required response actions.

       Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 341. Contracts with other agencies to provide or obtain goods and
                        services to promote efficient operation and
                        management of exchanges and morale, welfare, and
                        recreation activities.
    Sec. 342. Noncompetitive procurement of brand-name commercial items for
                        resale in commissary stores.
    Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

    Sec. 351. Extension of requirement for competitive procurement of
                        printing and
                        duplication services.
    Sec. 352. Reporting requirements under demonstration project for
                        purchase of fire, security, police, public works,
                        and utility services from local government agencies.

                            Subtitle F--Other Matters

    Sec. 361. Authority for use of appropriated funds for recruiting
                        functions.
    Sec. 362. Training of members of the uniformed services at non-
                        Government facilities.
    Sec. 363. Requirement for preparation of plan for improved operation of
                        working-capital funds and effect of failure to
                        produce an approved plan.

    [[Page 110 STAT. 2425]]

    Sec. 364. Increase in capital asset threshold under Defense Business
                        Operations Fund.
    Sec. 365. Expansion of authority to donate unusable food.
    Sec. 366. Assistance to committees involved in inauguration of the
                        President.
    Sec. 367. Department of Defense support for sporting events.
    Sec. 368. Storage of motor vehicle in lieu of transportation.
    Sec. 369. Security protections at Department of Defense facilities in
                        National
                        Capital Region.
    Sec. 370. Administration of midshipmen's store and other naval academy
                        support activities as nonappropriated fund
                        instrumentality.
    Sec. 371. Reimbursement under agreement for instruction of civilian
                        students at Foreign Language Institute of the
                        Defense Language Institute.
    Sec. 372. Assistance to local educational agencies that benefit
                        dependents of members of the Armed Forces and
                        Department of Defense civilian employees.
    Sec. 373. Renovation of building for Defense Finance and Accounting
                        Service
                        Center, Fort Benjamin Harrison, Indiana.
    Sec. 374. Food donation pilot program at service academies.
    Sec. 375. Authority of Air National Guard to provide certain services at
                        Lincoln Municipal Airport, Lincoln, Nebraska.
    Sec. 376. Technical amendment regarding Impact Aid program.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Permanent end strength levels to support two major regional
                        contingencies.
    Sec. 403. Authorized strengths for commissioned officers on active duty
                        in grades of major, lieutenant colonel, and colonel
                        and Navy grades of lieutenant commander, commander,
                        and captain.
    Sec. 404. Extension of requirement for recommendations regarding
                        appointments to joint 4-star officer positions.
    Sec. 405. Increase in authorized number of general officers on active
                        duty in the Marine Corps.

                           Subtitle B--Reserve Forces

    Sec. 411. End strengths for Selected Reserve.
    Sec. 412. End strengths for reserves on active duty in support of the
                        Reserves.
    Sec. 413. End strengths for military technicians.
    Sec. 414. Assurance of continued assignment of military personnel to
                        serve in
                        Selective Service System.

                   Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    Sec. 501. Grade of Chief of Naval Research.
    Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force
                        Nurse Corps.
    Sec. 503. Navy spot promotion authority for certain lieutenants with
                        critical skills.
    Sec. 504. Time for award of degrees by unaccredited educational
                        institutions for graduates to be considered
                        educationally qualified for appointment as Reserve
                        officers in grade O-3.
    Sec. 505. Exception to baccalaureate degree requirement for appointment
                        in the Naval Reserve in grades above O-2.
    Sec. 506. Chief warrant officer promotions.
    Sec. 507. Service credit for senior ROTC cadets and midshipmen in
                        simultaneous membership program.
    Sec. 508. Continuation on active status for certain Reserve officers of
                        the Air Force.
    Sec. 509. Reports on response to recommendations concerning improvements
                        to
                        Department of Defense joint manpower process.
    Sec. 510. Frequency of reports to Congress on joint officer management
                        policies.

                      Subtitle B--Enlisted Personnel Policy

    Sec. 511. Career service reenlistments for members with at least 10
                        years of
                        service.
    Sec. 512. Authority to extend period for entry on active duty under the
                        delayed entry program.

    [[Page 110 STAT. 2426]]

                        Subtitle C--Activation and Recall

    Sec. 521. Limitations on recall of retired members to active duty.
    Sec. 522. Clarification of definition of active status.
    Sec. 523. Limitation of requirement for physical examinations of members
                        of
                        National Guard called into Federal service.

                    Subtitle D--Reserve Component Retirement

    Sec. 531. Increase in annual limit on days of inactive duty training
                        creditable
                        toward Reserve retirement.
    Sec. 532. Retirement of Reserve enlisted members who qualify for active
                        duty retirement after administrative reduction in
                        enlisted grade.
    Sec. 533. Authority for a Reserve on active duty to waive retirement
                        sanctuary.
    Sec. 534. Eligibility of Reserves for disability retirement.

                   Subtitle E--Other Reserve Component Matters

    Sec. 541. Training for Reserves on active duty in support of the
                        Reserves.
    Sec. 542. Eligibility for enrollment in Ready Reserve mobilization
                        income insurance program.
    Sec. 543. Reserve credit for participation in Health Professions
                        Scholarship and
                        Financial Assistance Program.
    Sec. 544. Amendments to Reserve Officer Personnel Management Act
                        provisions.
    Sec. 545. Report on number of advisers in active component support of
                        Reserves pilot program.
    Sec. 546. Sense of Congress and report regarding reemployment rights for
                        mobilized Reservists employed in foreign countries.
    Sec. 547. Payment of premiums under Mobilization Income Insurance
                        Program.

                     Subtitle F--Officer Education Programs

    Sec. 551. Oversight and management of Senior Reserve Officers' Training
                        Corps program.
    Sec. 552. Prohibition on reorganization of Army ROTC cadet command or
                        termination of senior ROTC units pending report on
                        ROTC.
    Sec. 553. Pilot program to test expansion of ROTC program to include
                        graduate students.
    Sec. 554. Demonstration project for instruction and support of Army ROTC
                        units by members of the Army Reserve and National
                        Guard.
    Sec. 555. Extension of maximum age for appointment as a cadet or
                        midshipman in the Senior Reserve Officers' Training
                        Corps and the service academies.
    Sec. 556. Expansion of eligibility for education benefits to include
                        certain Reserve Officers' Training Corps (ROTC)
                        participants.
    Sec. 557. Comptroller General report on cost and policy implications of
                        permitting up to five percent of service academy
                        graduates to be assigned directly to Reserve duty
                        upon graduation.

                       Subtitle G--Decorations and Awards

    Sec. 561. Authority for award of Medal of Honor to certain African
                        American
                        soldiers who served during World War II.
    Sec. 562. Waiver of time limitations for award of certain decorations to
                        specified persons.
    Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                            Subtitle H--Other Matters

    Sec. 571. Hate crimes in the military.
    Sec. 572. Disability coverage for members granted excess leave for
                        educational or emergency purposes.
    Sec. 573. Clarification of authority of a Reserve judge advocate to act
                        as a military notary public when not in a duty
                        status.
    Sec. 574. Panel on jurisdiction of courts-martial for the National Guard
                        when not in Federal service.
    Sec. 575. Authority to expand law enforcement placement program to
                        include firefighters.
    Sec. 576. Improvements to program to assist separated military and
                        civilian personnel to obtain employment as teachers
                        or teachers' aides.
    Sec. 577. Retirement at grade to which selected for promotion when a
                        physical disability is found at any physical
                        examination.
    Sec. 578. Revisions to missing persons authorities.

           Subtitle I--Commissioned Corps of the Public Health Service

    Sec. 581. Applicability to Public Health Service of prohibition on
                        crediting cadet or midshipmen service at the service
                        academies.

    [[Page 110 STAT. 2427]]

    Sec. 582. Exception to strength limitations for Public Health Service
                        officers assigned to the Department of Defense.
    Sec. 583. Authority to provide legal assistance to Public Health Service
                        officers.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Military pay raise for fiscal year 1997.
    Sec. 602. Adjustment of rate of cadet and midshipman pay.
    Sec. 603. Pay of senior noncommissioned officers while hospitalized.
    Sec. 604. Availability of basic allowance for quarters for certain
                        members without dependents who serve on sea duty.
    Sec. 605. Uniform applicability of discretion to deny an election not to
                        occupy
                        Government quarters.
    Sec. 606. Establishment of minimum monthly amount of variable housing
                        allowance for high housing cost areas.
    Sec. 607. Family separation allowance for members separated by military
                        orders from spouses who are members.
    Sec. 608. Waiver of time limitations for claim for pay and allowances.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. One-year extension of certain bonuses and special pay
                        authorities for
                        reserve forces.
    Sec. 612. One-year extension of certain bonuses and special pay
                        authorities for nurse officer candidates, registered
                        nurses, and nurse anesthetists.
    Sec. 613. One-year extension of authorities relating to payment of other
                        bonuses and special pays.
    Sec. 614. Special pay for certain Public Health Service officers.
    Sec. 615. Special incentives to recruit and retain dental officers.
    Sec. 616. Foreign language proficiency pay for Public Health Service and
                        National Oceanic and Atmospheric Administration
                        officers.

                Subtitle C--Travel and Transportation Allowances

    Sec. 621. Allowance in connection with shipping motor vehicle at
                        Government
                        expense.
    Sec. 622. Dislocation allowance at a rate equal to two and one-half
                        months basic allowance for quarters.
    Sec. 623. Allowance for travel performed in connection with leave
                        between consecutive overseas tours.
    Sec. 624. Funding for transportation of household effects of Public
                        Health Service officers.

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

    Sec. 631. Effective date for military retiree cost-of-living adjustment
                        for fiscal year 1998.
    Sec. 632. Clarification of initial computation of retiree COLAs after
                        retirement.
    Sec. 633. Suspension of payment of retired pay of members who are absent
                        from the United States to avoid prosecution.
    Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
    Sec. 635. Increases in Survivor Benefit Plan contributions to be
                        effective concurrently with payment of retired pay
                        cost-of-living increases.
    Sec. 636. Amendments to the Uniformed Services Former Spouses'
                        Protection Act.
    Sec. 637. Prevention of circumvention of court order by waiver of
                        retired pay to
                        enhance civil service retirement annuity.
    Sec. 638. Administration of benefits for so-called minimum income
                        widows.

                            Subtitle E--Other Matters

    Sec. 651. Discretionary allotment of pay, including retired or retainer
                        pay.
    Sec. 652. Reimbursement for adoption expenses incurred in adoptions
                        through
                        private placements.
    Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from
                        certain separation pay.
    Sec. 654. Technical correction clarifying limitation on furnishing
                        clothing or allowances for enlisted National Guard
                        technicians.
    Sec. 655. Technical correction to prior authority for payment of back
                        pay to certain persons.
    Sec. 656. Compensation for persons awarded prisoner of war medal who did
                        not previously receive compensation as a prisoner of
                        war.
    Sec. 657. Payments to certain persons captured and interned by North
                        Vietnam.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Preventive health care screening for colon and prostate
                        cancer.

    [[Page 110 STAT. 2428]]

    Sec. 702. Implementation of requirement for Selected Reserve dental
                        insurance plan.
    Sec. 703. Dental insurance plan for military retirees and unremarried
                        surviving spouses and certain other dependents of
                        military retirees.
    Sec. 704. Plan for health care coverage for children with medical
                        conditions caused by parental exposure to chemical
                        munitions while serving as members of the Armed
                        Forces.

                           Subtitle B--TRICARE Program

    Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
    Sec. 712. Improved information exchange between military treatment
                        facilities and TRICARE program contractors.
    Sec. 713. Plans for medicare subvention demonstration programs.

               Subtitle C--Uniformed Services Treatment Facilities

    Sec. 721. Definitions.
    Sec. 722. Inclusion of designated providers in uniformed services health
                        care
                        delivery system.
    Sec. 723. Provision of uniform benefit by designated providers.
    Sec. 724. Enrollment of covered beneficiaries.
    Sec. 725. Application of CHAMPUS payment rules.
    Sec. 726. Payments for services.
    Sec. 727. Repeal of superseded authorities.

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

    Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically
                        necessary treatment in connection with certain
                        clinical trials.
    Sec. 732. Exception to maximum allowable payments to individual health-
                        care
                        providers under CHAMPUS.
    Sec. 733. Codification of annual authority to credit CHAMPUS refunds to
                        current year appropriation.
    Sec. 734. Exceptions to requirements regarding obtaining
                        nonavailability-of-health-care statements.
    Sec. 735. Enhancement of third-party collection and secondary payer
                        authorities under CHAMPUS.

                            Subtitle E--Other Matters

    Sec. 741. Alternatives to active duty service obligation under Armed
                        Forces Health Professions Scholarship and Financial
                        Assistance program and Uniformed Services University
                        of the Health Sciences.
    Sec. 742. External peer review for defense health program extramural
                        medical
                        research involving human subjects.
    Sec. 743. Independent research regarding Gulf War syndrome.
    Sec. 744. Comptroller General review of health care activities of
                        Department of
                        Defense relating to Gulf War illnesses.
    Sec. 745. Report regarding specialized treatment facility program.
    Sec. 746. Study of means of ensuring uniformity in provision of medical
                        and dental care for members of Reserve components.
    Sec. 747. Sense of Congress regarding tax treatment of Armed Forces
                        Health
                        Professions Scholarship and Financial Assistance
                        program.

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

                       Subtitle A--Acquisition Management

    Sec. 801. Procurement technical assistance programs.
    Sec. 802. Extension of pilot mentor-protege program.
    Sec. 803. Authority to waive certain requirements for defense
                        acquisition pilot programs.
    Sec. 804. Modification of authority to carry out certain prototype
                        projects.
    Sec. 805. Increase in threshold amounts for major systems.
    Sec. 806. Revisions in information required to be included in selected
                        acquisition reports.
    Sec. 807. Increase in simplified acquisition threshold for humanitarian
                        or peacekeeping operations.
    Sec. 808. Expansion of audit reciprocity among Federal agencies to
                        include post-award audits.
    Sec. 809. Excessive compensation of certain contractor personnel.
    Sec. 810. Exception to prohibition on procurement of foreign goods.

    [[Page 110 STAT. 2429]]

                            Subtitle B--Other Matters

    Sec. 821. Prohibition on release of contractor proposals under Freedom
                        of Information Act.
    Sec. 822. Amendments relating to reports on procurement regulatory
                        activity.
    Sec. 823. Amendment of multiyear limitation on contracts for inspection,
                        maintenance, and repair.
    Sec. 824. Streamlined notice requirements to contractors and employees
                        regarding termination or substantial reduction in
                        contracts under major defense programs.
    Sec. 825. Repeal of notice requirements for substantially or seriously
                        affected parties in downsizing efforts.
    Sec. 826. Study of effectiveness of defense mergers.
    Sec. 827. Annual report relating to Buy American Act.
    Sec. 828. Foreign environmental technology.
    Sec. 829. Assessment of national defense technology and industrial base
                        and
                        dependency of base on supplies available only from
                        foreign countries.
    Sec. 830. Expansion of report on implementation of automated information
                        systems to include additional matters regarding
                        information resources management.
    Sec. 831. Year 2000 software conversion.
    Sec. 832. Procurement from firms in industrial base for production of
                        small arms.
    Sec. 833. Cable television franchise agreements.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                           Subtitle A--General Matters

    Sec. 901. Repeal of previously enacted reduction in number of statutory
                        positions in Office of the Secretary of Defense.
    Sec. 902. Additional required reduction in defense acquisition
                        workforce.
    Sec. 903. Reduction of personnel assigned to Office of the Secretary of
                        Defense.
    Sec. 904. Report on military department headquarters staffs.
    Sec. 905. Matters to be considered in next assessment of current
                        missions, responsibilities, and force structure of
                        the unified combatant commands.
    Sec. 906. Transfer of authority to control transportation systems in
                        time of war.
    Sec. 907. Codification of requirements relating to continued operation
                        of the
                        Uniformed Services University of the Health
                        Sciences.
    Sec. 908. Joint Requirements Oversight Council.
    Sec. 909. Membership of the Ammunition Storage Board.
    Sec. 910. Removal of Secretary of the Army from membership on the
                        Foreign Trade Zone Board.
    Sec. 911. Composition of aircraft accident investigation boards.
    Sec. 912. Mission of the White House Communications Agency.

                       Subtitle B--Force Structure Review

    Sec. 921. Short title.
    Sec. 922. Findings.
    Sec. 923. Quadrennial Defense Review.
    Sec. 924. National Defense Panel.
    Sec. 925. Postponement of deadlines.
    Sec. 926. Definitions.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Incorporation of classified annex.
    Sec. 1003. Authority for obligation of certain unauthorized fiscal year
                          1996 defense appropriations.
    Sec. 1004. Authorization of prior emergency supplemental appropriations
                          for fiscal year 1996.
    Sec. 1005. Format for budget requests for Navy/Marine Corps and Air
                          Force ammunition accounts.
    Sec. 1006. Format for annual budget requests for Defense Airborne
                          Reconnaissance Program.
    Sec. 1007. Limitation on use of Department of Defense funds transferred
                          to the Coast Guard.
    Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
    Sec. 1009. Designation and liability of disbursing and certifying
                          officials for the Coast Guard.
    Sec. 1010. Authority to suspend or terminate collection actions against
                          deceased members of the Coast Guard.

    [[Page 110 STAT. 2430]]

    Sec. 1011. Department of Defense disbursing official check cashing and
                          exchange transactions.

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1021. Repeal of requirement for continuous applicability of
                          contracts for phased maintenance of AE class
                          ships.
    Sec. 1022. Funding for second and third maritime prepositioning ships
                          out of
                          National Defense Sealift Fund.
    Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
    Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
    Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                       Subtitle C--Counter-Drug Activities

    Sec. 1031. Authority to provide additional support for counter-drug
                          activities of Mexico.
    Sec. 1032. Availability of funds for certain drug interdiction and
                          counter-drug
                          activities.
    Sec. 1033. Transfer of excess personal property to support law
                          enforcement
                          activities.
    Sec. 1034. Sale by Federal departments or agencies of chemicals used to
                          manufacture controlled substances.

                         Subtitle D--Reports and Studies

    Sec. 1041. Annual report on Operation Provide Comfort and Operation
                          Enhanced Southern Watch.
    Sec. 1042. Annual report on emerging operational concepts.
    Sec. 1043. Report on Department of Defense military child care programs.
    Sec. 1044. Report on Department of Defense military youth programs.
    Sec. 1045. Quarterly reports regarding coproduction agreements.
    Sec. 1046. Report on witness interview procedures for Department of
                          Defense criminal investigations.
    Sec. 1047. Report on military readiness requirements of the Armed
                          Forces.
    Sec. 1048. Report on NATO enlargement.

             Subtitle E--Management of Armed Forces Retirement Home

    Sec. 1051. Retirement Home Boards of Directors.
    Sec. 1052. Acceptance of uncompensated services.
    Sec. 1053. Disposal of tract of real property in the District of
                          Columbia.

                            Subtitle F--Other Matters

    Sec. 1061. Policy on protection of national information infrastructure
                          against
                          strategic attack.
    Sec. 1062. Information systems security program.
    Sec. 1063. Authority to accept services from foreign governments and
                          international organizations for defense purposes.
    Sec. 1064. Prohibition on collection and release of detailed satellite
                          imagery
                          relating to Israel.
    Sec. 1065. George C. Marshall European Center for Strategic Security
                          Studies.
    Sec. 1066. Authority to award to civilian participants in the defense of
                          Pearl Harbor the Congressional Medal previously
                          authorized only for military participants in the
                          defense of Pearl Harbor.
    Sec. 1067. Assimilative crimes authority for traffic offenses on
                          military installations.
    Sec. 1068. Uniform Code of Military Justice amendments.
    Sec. 1069. Punishment of interstate stalking.
    Sec. 1070. Participation of members, dependents, and other persons in
                          crime prevention efforts at installations.
    Sec. 1071. Display of State flags at installations and facilities of the
                          Department of Defense.
    Sec. 1072. Treatment of excess operational support airlift aircraft.
    Sec. 1073. Correction to statutory references to certain Department of
                          Defense
                          organizations.
    Sec. 1074. Technical and clerical amendments.
    Sec. 1075. Modification to third-party liability to United States for
                          tortious infliction of injury or disease on
                          members of the uniformed services.
    Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
    Sec. 1077. Exemption from requirements applicable to savings
                          associations for certain savings institutions
                          serving military personnel.
    Sec. 1078. Improvements to National Security Education Program.
    Sec. 1079. Aviation and vessel war risk insurance.

    [[Page 110 STAT. 2431]]

    Sec. 1080. Designation of memorial as National D-Day Memorial.
    Sec. 1081. Sense of Congress regarding semiconductor trade agreement
                          between United States and Japan.
    Sec. 1082. Agreements for exchange of defense personnel between the
                          United States and foreign countries.
    Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
    Sec. 1084. Defense burdensharing.

                  TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

    Sec. 1101. Short title.
    Sec. 1102. Findings.
    Sec. 1103. Role of Director of Central Intelligence in appointment and
                          evaluation of certain intelligence officials.

                       Subtitle A--Establishment of Agency

    Sec. 1111. Establishment.
    Sec. 1112. Missions and authority.
    Sec. 1113. Transfers of personnel and assets.
    Sec. 1114. Compatibility with authority under the National Security Act
                          of 1947.
    Sec. 1115. Creditable civilian service for career conditional employees
                          of the
                          Defense Mapping Agency.
    Sec. 1116. Saving provisions.
    Sec. 1117. Definitions.
    Sec. 1118. Authorization of appropriations.

              Subtitle B--Conforming Amendments and Effective Dates

    Sec. 1121. Redesignation and repeals.
    Sec. 1122. Reference amendments.
    Sec. 1123. Headings and clerical amendments.
    Sec. 1124. Effective date.

                    TITLE XII--RESERVE FORCES REVITALIZATION

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

                     Subtitle A--Reserve Component Structure

    Sec. 1211. Reserve component commands.
    Sec. 1212. Reserve component chiefs.
    Sec. 1213. Review of active duty and Reserve general and flag officer
                          authorizations.
    Sec. 1214. Guard and Reserve technicians.

                   Subtitle B--Reserve Component Accessibility

    Sec. 1231. Report to Congress on measures to improve National Guard and
                          Reserve ability to respond to emergencies.
    Sec. 1232. Report to Congress concerning tax incentives for employers of
                          members of Reserve components.
    Sec. 1233. Report to Congress concerning income insurance program for
                          activated Reservists.
    Sec. 1234. Report to Congress concerning small business loans for
                          members released from Reserve service during
                          contingency operations.

                     Subtitle C--Reserve Forces Sustainment

    Sec. 1251. Report concerning tax deductibility of nonreimbursable
                          expenses.
    Sec. 1252. Authority to pay transient housing charges for members
                          performing
                          active duty for training.
    Sec. 1253. Sense of Congress concerning quarters allowance during
                          service on
                          active duty for training.
    Sec. 1254. Sense of Congress concerning military leave policy.
    Sec. 1255. Reserve Forces Policy Board.
    Sec. 1256. Report on parity of benefits for active duty service and
                          Reserve service.
    Sec. 1257. Information on proposed funding for the Guard and Reserve
                          components in future-years defense programs.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

     Subtitle A--Arms Control, Counterproliferation Activities, and Related
                                     Matters

    Sec. 1301. Extension of counterproliferation authorities.
    Sec. 1302. Limitation on retirement or dismantlement of strategic
                          nuclear delivery systems.

    [[Page 110 STAT. 2432]]

    Sec. 1303. Strengthening certain sanctions against nuclear proliferation
                          activities.
    Sec. 1304. Authority to pay certain expenses relating to humanitarian
                          and civic
                          assistance for clearance of landmines.
    Sec. 1305. Report on military capabilities of People's Republic of
                          China.
    Sec. 1306. Presidential report regarding weapons proliferation and
                          policies of the People's Republic of China.
    Sec. 1307. United States-People's Republic of China Joint Defense
                          Conversion Commission.
    Sec. 1308. Sense of Congress concerning export controls.
    Sec. 1309. Counterproliferation Program Review Committee.
    Sec. 1310. Sense of Congress concerning assisting other countries to
                          improve
                          security of fissile material.
    Sec. 1311. Review by Director of Central Intelligence of National
                          Intelligence Estimate 95-19.

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

    Sec. 1321. Establishment of Commission.
    Sec. 1322. Duties of Commission.
    Sec. 1323. Report.
    Sec. 1324. Powers.
    Sec. 1325. Commission procedures.
    Sec. 1326. Personnel matters.
    Sec. 1327. Miscellaneous administrative provisions.
    Sec. 1328. Funding.
    Sec. 1329. Termination of the Commission.

             TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

    Sec. 1401. Short title.
    Sec. 1402. Findings.
    Sec. 1403. Definitions.

                        Subtitle A--Domestic Preparedness

    Sec. 1411. Response to threats of terrorist use of weapons of mass
                          destruction.
    Sec. 1412. Emergency response assistance program.
    Sec. 1413. Nuclear, chemical, and biological emergency response.
    Sec. 1414. Chemical-biological emergency response team.
    Sec. 1415. Testing of preparedness for emergencies involving nuclear,
                          radiological, chemical, and biological weapons.
    Sec. 1416. Military assistance to civilian law enforcement officials in
                          emergency
                          situations involving biological or chemical
                          weapons.
    Sec. 1417. Rapid response information system.

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

    Sec. 1421. Procurement of detection equipment United States border
                          security.
    Sec. 1422. Extension of coverage of International Emergency Economic
                          Powers Act.
    Sec. 1423. Sense of Congress concerning criminal penalties.
    Sec. 1424. International border security.

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

    Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative
                          Threat
                          Reduction programs on elimination or
                          transportation of nuclear
                          weapons.
    Sec. 1432. Elimination of plutonium production.

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

    Sec. 1441. National Coordinator on Nonproliferation.
    Sec. 1442. National Security Council Committee on Nonproliferation.
    Sec. 1443. Comprehensive preparedness program.
    Sec. 1444. Termination.

                            Subtitle E--Miscellaneous

    Sec. 1451. Sense of Congress concerning contracting policy.
    Sec. 1452. Transfers of allocations among Cooperative Threat Reduction
                          programs.
    Sec. 1453. Sense of Congress concerning assistance to states of former
                          Soviet Union.

    [[Page 110 STAT. 2433]]

    Sec. 1454. Purchase of low-enriched uranium derived from Russian highly
                          enriched uranium.
    Sec. 1455. Sense of Congress concerning purchase, packaging, and
                          transportation of fissile materials at risk of
                          theft.

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

    Sec. 1501. Specification of Cooperative Threat Reduction programs.
    Sec. 1502. Fiscal year 1997 funding allocations.
    Sec. 1503. Prohibition on use of funds for specified purposes.
    Sec. 1504. Limitation on use of funds until specified reports are
                          submitted.
    Sec. 1505. Availability of funds.

               TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

    Sec. 1601. Modification of requirement for conversion of military
                          positions to
                          civilian positions.
    Sec. 1602. Retention of civilian employee positions at military training
                          bases transferred to National Guard.
    Sec. 1603. Clarification of applicability of certain management
                          constraints on major range and test facility base
                          structure.
    Sec. 1604. Travel expenses and health care for civilian employees of the
                          Department of Defense abroad.
    Sec. 1605. Travel, transportation, and relocation allowances for certain
                          former
                          nonappropriated fund employees.
    Sec. 1606. Employment and salary practices applicable to Department of
                          Defense overseas teachers.
    Sec. 1607. Employment and compensation of civilian faculty members at
                          certain Department of Defense schools.
    Sec. 1608. Reimbursement of Department of Defense domestic dependent
                          school board members for certain expenses.
    Sec. 1609. Modification of authority for civilian employees of
                          Department of
                          Defense to participate voluntarily in reductions
                          in force.
    Sec. 1610. Wage-board compensatory time off.
    Sec. 1611. Liquidation of restored annual leave that remains unused upon
                          transfer of employee from installation being
                          closed or realigned.
    Sec. 1612. Waiver of requirement for repayment of Voluntary Separation
                          Incentive pay by former Department of Defense
                          employees reemployed by the Government without
                          pay.
    Sec. 1613. Simplification of rules relating to the observance of certain
                          holidays.
    Sec. 1614. Revision of certain travel management authorities.
    Sec. 1615. Failure to comply with veterans' preference requirements to
                          be treated as a prohibited personnel practice.
    Sec. 1616. Pilot programs for defense employees converted to contractor
                          employees due to privatization at closed military
                          installations.

         Subtitle B--Department of Defense Intelligence Personnel Policy

    Sec. 1631. Short title.
    Sec. 1632. Management of civilian intelligence personnel.
    Sec. 1633. Repeal of superseded sections and clerical and conforming
                          amendments.
    Sec. 1634. Other personnel management authorities.
    Sec. 1635. Effective date.

                   TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

    Sec. 1701. Short title.

                         Subtitle A--Relocation Benefits

    Sec. 1711. Allowance for seeking permanent residence quarters.
    Sec. 1712. Temporary quarters subsistence expenses allowance.
    Sec. 1713. Modification of residence transaction expenses allowance.
    Sec. 1714. Authority to pay for property management services.
    Sec. 1715. Authority to transport a privately owned motor vehicle within
                          the
                          continental United States.
    Sec. 1716. Authority to pay limited relocation allowances to an employee
                          who is performing an extended assignment.
    Sec. 1717. Authority to pay a home marketing incentive.
    Sec. 1718. Revision and reenactment of additional provisions relating to
                          relocation expenses.

    [[Page 110 STAT. 2434]]

                      Subtitle B--Miscellaneous Provisions

    Sec. 1721. Repeal of the long-distance telephone call certification
                          requirement.
    Sec. 1722. Transfer of authority to prescribe regulations.
    Sec. 1723. Conforming and clerical amendments.
    Sec. 1724. Assessment of cost savings.
    Sec. 1725. Effective date and issuance of regulations.

         TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

    Sec. 1801. Recognition and grant of Federal charter.
    Sec. 1802. Powers.
    Sec. 1803. Purposes.
    Sec. 1804. Service of process.
    Sec. 1805. Membership.
    Sec. 1806. Board of directors.
    Sec. 1807. Officers.
    Sec. 1808. Restrictions.
    Sec. 1809. Liability.
    Sec. 1810. Maintenance and inspection of books and records.
    Sec. 1811. Audit of financial transactions.
    Sec. 1812. Annual report.
    Sec. 1813. Reservation of right to alter, amend, or repeal charter.
    Sec. 1814. Tax-exempt status required as condition of charter.
    Sec. 1815. Termination.
    Sec. 1816. Definition of State.

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Sec. 2001. Short title.

                                 TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Land acquisition, National Ground Intelligence Center,
                          Charlottesville, Virginia.

                                TITLE XXII--NAVY

    Sec. 2201. Authorized Navy construction and land acquisition projects.
    Sec. 2202. Family housing.
    Sec. 2203. Improvements to military family housing units.
    Sec. 2204. Authorization of appropriations, Navy.
    Sec. 2205. Beach replenishment, Naval Air Station, North Island,
                          California.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
                          projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Elimination of authority to carry out fiscal year 1995
                          project, Spangdahlem Air Force Base, Germany.

                          TITLE XXIV--DEFENSE AGENCIES

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

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
                          acquisition projects.

    [[Page 110 STAT. 2435]]

    Sec. 2602. Authorization and funding for construction and improvement of
                          Naval Reserve Centers.
    Sec. 2603. Upgrade Air National Guard facilities, Bangor International
                          Airport, Maine.

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    Sec. 2701. Expiration of authorizations and amounts required to be
                          specified by law.
    Sec. 2702. Extension of authorizations of certain fiscal year 1994
                          projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 1993
                          projects.
    Sec. 2704. Extension of authorizations of certain fiscal year 1992
                          projects.
    Sec. 2705. Effective date.

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Increase in certain thresholds for unspecified minor
                          construction projects.
    Sec. 2802. Redesignation of North Atlantic Treaty Organization
                          Infrastructure
                          program.
    Sec. 2803. Improvements to family housing units.
    Sec. 2804. Availability of funds for planning, execution, and
                          administration of contracts for family housing and
                          unaccompanied housing.

                Subtitle B--Defense Base Closure and Realignment

    Sec. 2811. Restoration of authority for certain intragovernment
                          transfers under 1988 base closure law.
    Sec. 2812. Contracting for certain services at facilities remaining on
                          closed
                          installations.
    Sec. 2813. Authority to compensate owners of manufactured housing.
    Sec. 2814. Additional purpose for which adjustment and diversification
                          assistance is authorized.
    Sec. 2815. Payment of stipulated penalties assessed under CERCLA in
                          connection with Loring Air Force Base, Maine.
    Sec. 2816. Plan for utilization, reutilization, or disposal of
                          Mississippi Army Ammunition Plant.

                          Subtitle C--Land Conveyances

                            Part I--Army Conveyances

    Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington,
                          Virginia.
    Sec. 2822. Land transfer, Fort Sill, Oklahoma.
    Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
    Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South
                          Carolina.
    Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
    Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center,
                          Manchester, New Hampshire.
    Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
    Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                            Part II--Navy Conveyances

    Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
    Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard,
                          Virginia.
    Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons
                          Industrial Reserve Plant, Calverton, New York.
    Sec. 2834. Land conveyance, former naval reserve facility, Lewes,
                          Delaware.
    Sec. 2835. Modification of land conveyance authority, Naval Reserve
                          Center,
                          Seattle, Washington.
    Sec. 2836. Release of condition on reconveyance of transferred land,
                          Guam.
    Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air
                          Station,
                          Meridian, Mississippi.

                         Part III--Air Force Conveyances

    Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche,
                          South
                          Dakota.
    Sec. 2842. Conveyance of primate research complex and Air Force-owned
                          chimpanzees, Holloman Air Force Base, New Mexico.

                           Part IV--Other Conveyances

    Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.

    [[Page 110 STAT. 2436]]

    Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla,
                          North
                          Dakota.
    Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
    Sec. 2854. Modification of boundaries of White Sands National Monument
                          and White Sands Missile Range.

                            Subtitle D--Other Matters

    Sec. 2861. Authority to grant easements for rights-of-way.
    Sec. 2862. Authority to enter into cooperative agreements for the
                          management of cultural resources on military
                          installations.
    Sec. 2863. Demonstration project for installation and operation of
                          electric power distribution system at Youngstown
                          Air Reserve Station, Ohio.
    Sec. 2864. Renovation of the Pentagon reservation.
    Sec. 2865. Plan for repairs and stabilization of the historic district
                          at the Forest Glen Annex of Walter Reed Medical
                          Center, Maryland.
    Sec. 2866. Naming of range at Camp Shelby, Mississippi.
    Sec. 2867. Designation of Michael O'Callaghan military hospital.
    Sec. 2868. Naming of building at the Uniformed Services University of
                          the Health Sciences.

                      TITLE XXIX--MILITARY LAND WITHDRAWALS

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

    Sec. 2901. Short title.
    Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military
                          Reser-
                          vation.
    Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver
                          Site.
    Sec. 2904. Maps and legal descriptions.
    Sec. 2905. Management of withdrawn lands.
    Sec. 2906. Management of withdrawn and acquired mineral resources.
    Sec. 2907. Hunting, fishing, and trapping.
    Sec. 2908. Termination of withdrawal and reservation.
    Sec. 2909. Determination of presence of contamination and effect of
                          contamination.
    Sec. 2910. Delegation.
    Sec. 2911. Hold harmless.
    Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
    Sec. 2913. Authorization of appropriations.

           Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

    Sec. 2921. Short title and definitions.
    Sec. 2922. Withdrawal and reservation of lands for El Centro.
    Sec. 2923. Maps and legal descriptions.
    Sec. 2924. Management of withdrawn lands.
    Sec. 2925. Duration of withdrawal and reservation.
    Sec. 2926. Continuation of ongoing decontamination activities.
    Sec. 2927. Requirements for extension.
    Sec. 2928. Early relinquishment of withdrawal.
    Sec. 2929. Delegation of authority.
    Sec. 2930. Hunting, fishing, and trapping.
    Sec. 2931. Hold harmless.

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

    Sec. 3101. Weapons activities.
    Sec. 3102. Environmental restoration and waste management.
    Sec. 3103. Defense fixed asset acquisition/privatization.
    Sec. 3104. Other defense activities.
    Sec. 3105. Defense nuclear waste disposal.

                    Subtitle B--Recurring General Provisions

    Sec. 3121. Reprogramming.
    Sec. 3122. Limits on general plant projects.
    Sec. 3123. Limits on construction projects.
    Sec. 3124. Fund transfer authority.
    Sec. 3125. Authority for conceptual and construction design.
    Sec. 3126. Authority for emergency planning, design, and construction
                          activities.

    [[Page 110 STAT. 2437]]

    Sec. 3127. Funds available for all national security programs of the
                          Department of Energy.
    Sec. 3128. Availability of funds.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Stockpile stewardship program.
    Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
    Sec. 3133. Tritium production.
    Sec. 3134. Modernization and consolidation of tritium recycling
                          facilities.
    Sec. 3135. Production of high explosives.
    Sec. 3136. Limitation on use of funds for certain research and
                          development
                          purposes.
    Sec. 3137. Prohibition on funding nuclear weapons activities with
                          People's Republic of China.
    Sec. 3138. International cooperative stockpile stewardship programs.
    Sec. 3139. Temporary authority relating to transfers of defense
                          environmental management funds.
    Sec. 3140. Management structure for nuclear weapons production
                          facilities and
                          nuclear weapons laboratories.
    Sec. 3141. Accelerated schedule for isolating high-level nuclear waste
                          at the
                          defense waste processing facility, Savannah River
                          Site.
    Sec. 3142. Processing and treatment of high-level nuclear waste and
                          spent nuclear fuel rods.
    Sec. 3143. Projects to accelerate closure activities at defense nuclear
                          facilities.
    Sec. 3144. Payment of costs of operation and maintenance of
                          infrastructure at
                          Nevada Test Site.

                            Subtitle D--Other Matters

    Sec. 3151. Report on plutonium pit production and remanufacturing plans.
    Sec. 3152. Amendments relating to baseline environmental management
                          reports.
    Sec. 3153. Requirement to develop future use plans for environmental
                          management program.
    Sec. 3154. Report on Department of Energy liability at Department
                          superfund sites.
    Sec. 3155. Requirement for annual five-year budget for the national
                          security programs of the Department of Energy.
    Sec. 3156. Requirements for Department of Energy weapons activities
                          budgets for fiscal years after fiscal year 1997.
    Sec. 3157. Repeal of requirement relating to accounting procedures for
                          Department of Energy funds.
    Sec. 3158. Update of report on nuclear test readiness postures.
    Sec. 3159. Reports on critical difficulties at nuclear weapons
                          laboratories and
                          nuclear weapons production plants.
    Sec. 3160. Extension of applicability of notice-and-wait requirement
                          regarding proposed cooperation agreements.
    Sec. 3161. Sense of Senate relating to redesignation of defense
                          environmental
                          restoration and waste management program.
    Sec. 3162. Commission on maintaining United States nuclear weapons
                          expertise.
    Sec. 3163. Sense of Congress regarding reliability and safety of
                          remaining nuclear forces.
    Sec. 3164. Study on worker protection at the Mound facility.
    Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement
                          Project, Livermore, California.
    Sec. 3166. Fellowship program for development of skills critical to
                          Department of Energy nuclear weapons complex.

        Subtitle E--Defense Nuclear Environmental Cleanup and Management

    Sec. 3171. Purpose.
    Sec. 3172. Applicability.
    Sec. 3173. Site manager.
    Sec. 3174. Department of Energy orders.
    Sec. 3175. Deployment of technology for remediation of defense nuclear
                          waste.
    Sec. 3176. Performance-based contracting.
    Sec. 3177. Designation of covered facilities as environmental cleanup
                          demonstration areas.
    Sec. 3178. Definitions.
    Sec. 3179. Termination.
    Sec. 3180. Report.

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

    Sec. 3181. Short title.

    [[Page 110 STAT. 2438]]

    Sec. 3182. Definitions.
    Sec. 3183. Management plan.
    Sec. 3184. Repeal of test phase and retrieval plans.
    Sec. 3185. Test phase activities.
    Sec. 3186. Disposal operations.
    Sec. 3187. Environmental Protection Agency disposal regulations.
    Sec. 3188. Compliance with environmental laws and regulations.
    Sec. 3189. Sense of Congress on commencement of emplacement of
                          transuranic waste.
    Sec. 3190. Decommissioning of WIPP.
    Sec. 3191. Authorizations for economic assistance and miscellaneous
                          payments.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

             Subtitle A--Authorization of Disposals and Use of Funds

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

                         Subtitle B--Programmatic Change

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

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

                       TITLE XXXV--PANAMA CANAL COMMISSION

                   Subtitle A--Authorization of Appropriations

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

               Subtitle B--Amendments to Panama Canal Act of 1979

    Sec. 3521. Short title; references.
    Sec. 3522. Definitions and recommendation for legislation.
    Sec. 3523. Administrator.
    Sec. 3524. Deputy Administrator and Chief Engineer.
    Sec. 3525. Office of Ombudsman.
    Sec. 3526. Appointment and compensation; duties.
    Sec. 3527. Applicability of certain benefits.
    Sec. 3528. Travel and transportation.
    Sec. 3529. Clarification of definition of agency.
    Sec. 3530. Panama Canal Employment System; merit and other employment
                          requirements.
    Sec. 3531. Employment standards.
    Sec. 3532. Repeal of obsolete provision regarding interim application of
                          Canal Zone Merit System.
    Sec. 3533. Repeal of provision relating to recruitment and retention
                          remuneration.
    Sec. 3534. Benefits based on basic pay.
    Sec. 3535. Vesting of general administrative authority of Commission.
    Sec. 3536. Applicability of certain laws.
    Sec. 3537. Repeal of provision relating to transferred or reemployed
                          employees.
    Sec. 3538. Administration of special disability benefits.
    Sec. 3539. Panama Canal Revolving Fund.
    Sec. 3540. Printing.
    Sec. 3541. Accounting policies.
    Sec. 3542. Interagency services; reimbursements.
    Sec. 3543. Postal service.
    Sec. 3544. Investigation of accidents or injury giving rise to claim.
    Sec. 3545. Operations regulations.
    Sec. 3546. Miscellaneous repeals.
    Sec. 3547. Exemption from Metric Conversion Act of 1975.
    Sec. 3548. Conforming and clerical amendments.
    Sec. 3549. Repeal of Panama Canal Code.

    [[Page 110 STAT. 2439]]

    SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

    Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior
                        helicopters.
    Sec. 112. Multiyear procurement authority for Army programs.
    Sec. 113. Bradley TOW 2 Test Program sets.

                            Subtitle C--Navy Programs

    Sec. 121. Nuclear attack submarine programs.
    Sec. 122. Arleigh Burke class destroyer program.
    Sec. 123. EA-6B aircraft reactive jammer program.
    Sec. 124. T-39N trainer aircraft for the Navy.
    Sec. 125. Penguin missile program.

                         Subtitle D--Air Force Programs

    Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
    Sec. 132. Modification to multiyear procurement authority for C-17
                        aircraft
                        program.

                            Subtitle E--Other Matters

    Sec. 141. Assessments of modernization priorities of the reserve
                        components.
    Sec. 142. Destruction of existing stockpile of lethal chemical agents
                        and munitions.
    Sec. 143. Extension of authority to carry out Armament Retooling and
                        Manufacturing Support Initiative.

                   Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for procurement for the Army as follows:
                (1) For aircraft, $1,314,015,000.
                (2) For missiles, $1,031,829,000.
                (3) For weapons and tracked combat vehicles, $1,409,514,000.
                (4) For ammunition, $1,003,028,000.
                (5) For other procurement, $2,990,240,000.

    [[Page 110 STAT. 2440]]

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for fiscal
    year 1997 for procurement for the Navy as follows:
                (1) For aircraft, $7,034,926,000.
                (2) For weapons, including missiles and torpedoes,
            $1,345,408,000.
                (3) For shipbuilding and conversion, $6,193,330,000.
                (4) For other procurement, $2,893,840,000.

        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 1997 for procurement for the Marine Corps in the amount
    of $560,148,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for procurement of ammunition for the Navy and the
    Marine Corps in the amount of $293,239,000.

    SEC. 103. AIR FORCE.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for procurement for the Air Force as follows:
                (1) For aircraft, $6,764,420,000.
                (2) For missiles, $2,525,875,000.
                (3) For ammunition, $278,302,000.
                (4) For other procurement, $5,814,419,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for Defense-wide procurement in the amount of $2,008,261,000.

    SEC. 105. RESERVE COMPONENTS.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for procurement of aircraft, vehicles, communications equipment, and
    other equipment for the reserve components of the Armed Forces as
    follows:
                (1) For the Army National Guard, $171,000,000.
                (2) For the Air National Guard, $234,000,000.
                (3) For the Army Reserve, $98,000,000.
                (4) For the Naval Reserve, $116,000,000.
                (5) For the Air Force Reserve, $94,000,000.
                (6) For the Marine Corps Reserve, $67,000,000.

    SEC. 106. DEFENSE INSPECTOR GENERAL.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for procurement for the Inspector General of the Department of Defense
    in the amount of $2,000,000.

    SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

        There is hereby authorized to be appropriated for fiscal year 1997
    the amount of $759,847,000 for--
                (1) the destruction of lethal chemical agents and munitions
            in accordance with section 1412 of the Department of Defense
            Authorization Act, 1986 (50 U.S.C. 1521); and
                (2) the destruction of chemical warfare materiel of the
            United States that is not covered by section 1412 of such Act.

    SEC. 108. DEFENSE HEALTH PROGRAMS.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for the Department of Defense for procurement for carrying

    [[Page 110 STAT. 2441]]

    out health care programs, projects, and activities of the Department of
    Defense in the total amount of $269,470,000.

                            Subtitle B--Army Programs

    SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED KIOWA
                            WARRIOR HELICOPTERS.

        Section 133 of the National Defense Authorization Act for Fiscal
    Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
    SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY
                            PROGRAMS.

        (a) Avenger Air Defense Missile System.--Notwithstanding the
    limitation in subsection (k) of section 2306b of title 10, United States
    Code, relating to the maximum duration of a multiyear contract under the
    authority of that section, the Secretary of the Army may extend the
    multiyear contract in effect during fiscal year 1996 for the Avenger Air
    Defense
    Missile system through fiscal year 1997 and may award such an extension.

        (b) Army Tactical Missile System.--The Secretary of the Army may, in
    accordance with section 2306b of title 10, United States Code, enter
    into a multiyear procurement contract, beginning with the fiscal year
    1997 program year, for procurement of the Army Tactical Missile System
    (Army TACMS).
        (c) Javelin Missile System.--The Secretary of the Army may, in
    accordance with section 2306b of title 10, United States Code, enter
    into multiyear procurement contracts for the procurement of the Javelin
    missile system.

    SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

        Of the funds authorized to be appropriated under section 101(3) of
    the National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 204), $6,000,000 is available for the procurement of
    Bradley TOW-2 Test Program sets.

                            Subtitle C--Navy Programs

    SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

        (a) Amounts Authorized From SCN Account.--(1) Of the amount
    authorized to be appropriated by section 102(a)(3) for fiscal year
    1997--
                (A) $699,071,000 is available for continued construction of
            the third vessel (designated SSN-23) in the Seawolf attack
            submarine class, which shall be the final vessel in that class;
                (B) $296,186,000 is available for long-lead and advance
            construction and procurement of components for construction of a
            submarine (previously designated by the Navy as the New Attack
            Submarine) beginning in fiscal year 1998 to be built by Electric
            Boat Division; and
                (C) $701,000,000 is available for long-lead and advance
            construction and procurement of components for construction of a
            second submarine (previously designated by the Navy as the New
            Attack Submarine) beginning in fiscal year 1999 to be built by
            Newport News Shipbuilding.

    [[Page 110 STAT. 2442]]

        (2) In addition to the purposes for which the amounts under
    subparagraphs (B) and (C) of paragraph (1) are available, such amounts
    are also available for contracts with Electric Boat Division and Newport
    News Shipbuilding to carry out the provisions of the ``Memorandum of
    Agreement Among the Department of the Navy, Electric Boat Corporation
    (EB) and Newport News Shipbuilding and Drydock Company (NNS) Concerning
    the New Attack Submarine'', dated April 5, 1996, relating to design data
    transfer, design improvements, integrated process teams, and updated
    design base.
        (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the amount
    authorized to be appropriated by section 201(2), $487,611,000 is
    available for the design of the submarine previously designated by the
    Navy as the New Attack Submarine.
        (2)(A) Of the amount authorized to be appropriated by section
    201(2), $60,000,000 is available for obligation under contracts with
    Electric Boat Division and Newport News Shipbuilding and other entities
    to address the inclusion on future nuclear attack submarines of the core
    advanced technologies that are identified by the Secretary of Defense
    (in the report of the Secretary entitled ``Report on Nuclear Attack
    Submarine Procurement and Submarine Technology'', submitted to Congress
    on March 26, 1996) as those technologies the maturation of which the
    Submarine Technology Assessment Panel recommended be addressed in its
    March 15, 1996, final report to the Assistant Secretary of the Navy for
    Research, Development, and Acquisition, as follows: hydrodynamics,
    alternative sail designs, advanced arrays, electric drive, external
    weapons, and active controls and mounts.
        (B) Of the amount available under subparagraph (A), $20,000,000
    shall be equally divided between Electric Boat Division and Newport News
    Shipbuilding for the purpose of ensuring that those shipbuilders are
    principal participants in the process of addressing the inclusion of
    technologies referred to in subparagraph (A) on future nuclear attack
    submarines. Contracts with the shipbuilders under this subparagraph
    shall provide the shipbuilders with wide latitude to pursue submarine-
    wide, integrated systems approaches to the inclusion of such
    technologies. The Secretary of the Navy shall ensure that those
    shipbuilders have access for such purpose (under procedures prescribed
    by the Secretary) to the Navy laboratories and the Office of Naval
    Intelligence and (in accordance with arrangements to be made by the
    Secretary) to the Defense Advanced Research Projects Agency.
        (3) Of the amount authorized to be appropriated by section 201(2),
    $38,000,000 is available to begin funding those Category I and Category
    II advanced technologies described in Appendix C of the report of the
    Secretary of Defense referred to in paragraph (2)(A). The Secretary of
    the Navy shall ensure that Electric Boat Division and Newport News
    Shipbuilding are also principal participants in the technology
    initiatives pursued with such funds to ensure submarine-wide, integrated
    systems approaches to the inclusion of such technologies on future
    nuclear attack submarines.
        (4) In addition to the purposes for which the amounts under
    paragraphs (1), (2), and (3) are available, such amounts are also
    available for contracts with Electric Boat Division and Newport News
    Shipbuilding to carry out the provisions of the memorandum of agreement
    referred to in subsection (a)(2) for research and development activities
    under that memorandum of agreement.

    [[Page 110 STAT. 2443]]

        (c) Amount From Fiscal Year 1996 Funds for National Defense Sealift
    Fund.--(1) Section 132 of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.
        (2) The amount referred to in section 132 of the National Defense
    Authorization Act for Fiscal Year 1996 (as in effect immediately before
    the repeal by paragraph (1)) shall be available to the Secretary of the
    Navy for activities relating only to advanced submarine technology that
    involve the construction of large scale vehicles for purposes of
    hydrodynamic and
    hydroacoustic research on developmental designs for hulls and propulsion
    systems.

        (d) Contracts Authorized.--(1) The Secretary of the Navy is
    authorized, using funds available pursuant to subparagraphs (B) and (C)
    of subsection (a)(1), to enter into contracts with Electric Boat
    Division and Newport News Shipbuilding, and suppliers of components,
    during fiscal year 1997 for--
                (A) the procurement of long-lead components for the fiscal
            year 1998 submarine and the fiscal year 1999 submarine under
            this section; and
                (B) advance construction of such components and other
            components for such submarines.

        (2) The Secretary may enter into a contract or contracts under this
    section with the shipbuilder of the fiscal year 1998 submarine only if
    the Secretary enters into a contract or contracts under this section
    with the shipbuilder of the fiscal year 1999 submarine.
        (e) <<NOTE: Certification.>>  Limitations.--(1)(A) Of the amounts
    specified in subsection (a)(1), not more than $100,000,000 may be
    obligated until the Secretary of Defense certifies in writing to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives that procurement of nuclear
    attack submarines described in subparagraph (B) will be under one or
    more contracts that are entered into after competition between Electric
    Boat Division and Newport News Shipbuilding in which the Secretary of
    the Navy solicits competitive proposals and awards the contract or
    contracts on the basis of price.

        (B) The submarines referred to in subparagraph (A) are nuclear
    attack submarines that are to be constructed beginning--
                (i) after fiscal year 1999; or
                (ii) if four submarines are to be procured as provided for
            in the plan required under section 131(c) of the National
            Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
            106; 110 Stat. 208), after fiscal year 2001.

    <<NOTE: Reports.>>     (2) Of the amounts specified in subsection
    (a)(1), not more than $675,000,000 may be obligated until the Under
    Secretary of Defense for Acquisition and Technology submits to the
    congressional committees specified in paragraph (1) a report in writing
    detailing the following:
                (A) The Under Secretary's oversight activities to date, and
            plans for the future, for the development and improvement of the
            nuclear attack submarine program of the Navy as required by
            section 131(b)(2)(C) of the National Defense Authorization Act
            for Fiscal Year 1996 (110 Stat. 207).
                (B) The implementation of, and activities conducted under,
            the program required to be established by the Director of the
            Defense Advanced Research Projects Agency by section 131(i) of
            the National Defense Authorization Act for Fiscal Year 1996 (110
            Stat. 210) for the development and demonstration of

    [[Page 110 STAT. 2444]]

            advanced submarine technologies and a rapid prototype
            acquisition strategy for both land-based and at-sea subsystem
            and system demonstrations of such technologies.
                (C) A description of all research, development, test, and
            evaluation programs, projects, or activities within the
            Department of Defense which, in the opinion of the Under
            Secretary, are designed to contribute to the development and
            demonstration of advanced submarine technologies leading to a
            more capable, more affordable nuclear attack submarine,
            specifically identifying ongoing involvement, and plans for
            future involvement, in any such program, project, or activity by
            either Electric Boat Division or Newport News Shipbuilding, or
            by both.

        (3) <<NOTE: Certification.>>  Of the amount specified in subsection
    (b)(1), not more than $100,000,000 may be obligated or expended until
    the Under Secretary of Defense (Comptroller) certifies in writing to the
    congressional committees specified in paragraph (1) that--
                (A) funds specified in subsection (c)(2) have been made
            available for obligation; and
                (B) to the extent that funds specified in paragraphs (2) and
            (3) of subsection (b) have been appropriated for the purposes
            specified in such paragraphs, such funds have been made
            available for obligation.

        (f) Acquisition Simplification.--In furtherance of the direction
    provided by subsection (d) of section 131 of the National Defense
    Authorization Act for Fiscal Year 1996 (110 Stat. 209) to the Secretary
    of Defense regarding the application of acquisition reform policies and
    procedures to the submarine program under that section, the Secretary
    shall direct the Secretary of the Navy to implement for the submarine
    programs of the Navy acquisition reform initiatives similar in intent
    and approach to the initiatives begun by the Secretary of the Air Force
    in May 1995 and referred to as the ``Lightning Bolt''
    initiatives. <<NOTE: Reports.>>  The Secretary of the Navy shall, not
    later than March 31, 1997, submit to the congressional committees
    specified in subsection (e)(1) a report on the results of the
    implementation of such initiatives.

        (g) Design Responsibility.--(1) The Secretary of the Navy shall
    carry out the submarine program described in section 131 of the National
    Defense Authorization Act for Fiscal Year 1996 in a manner that ensures
    that each of the two shipbuilders in-
    volved in the design and construction of the four submarines described
    in that section be allowed to propose to the Secretary any design
    improvement that the shipbuilder considers appropriate for the
    submarines to be built by that shipbuilder as part of those four
    submarines. The Secretary shall ensure that both shipbuilders have full
    and open access to all design data concerning the design of the
    submarine previously designated by the Navy as the New Attack Submarine.
        (2) The designs proposed by the shipbuilders should proceed from,
    but not be limited to, the specific advanced technologies referred to in
    subsection (b)(2)(A), especially technologies involving hydrodynamics
    and hydroacoustics concepts.
        (3) <<NOTE: Reports.>> The Secretary shall require both shipbuilders
    to submit to the Secretary an annual report on the progress of the
    design work on the submarines referred to in paragraph (1) and shall
    transmit each such report to the committees specified in subsection
    (e)(1).

    [[Page 110 STAT. 2445]]

        (4) <<NOTE: Reports.>>  The Secretary shall also submit an annual
    report to the committees specified in subsection (e)(1) on the design
    improvements proposed by the two shipbuilders under paragraph (1) for
    incorporation on any of the four submarines and on the degree to which
    design information on the base design and design improvements has been
    shared between the shipbuilders. Each annual report shall set forth each
    design improvement proposed and whether that proposal was--
                (A) reviewed, approved, and funded by the Navy;
                (B) reviewed and approved, but not funded; or
                (C) not approved, in which case the report shall include the
            reasons therefor and any views of the shipyard making the
            proposal.

        (5) The reports referred to in paragraphs (3) and (4) shall be
    submitted concurrently with the annual revisions to the Secretary of
    Defense's nuclear attack submarine plan required by section 131(e) of
    the National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 209).
        (h) Serial Production.--The Secretary of Defense shall modify the
    plan relating to development of a program leading to production of a
    more capable and less expensive submarine than the New Attack Submarine
    that was submitted to Congress pursuant to section 131(c) of the
    National Defense Authorization Act for Fiscal Year 1996 in order to
    provide in such plan the option for selection of a design for a next
    submarine for serial production not earlier than fiscal year 2002
    (rather than fiscal year 2003, as provided in paragraph (3)(B) of such
    section 131(c)).
        (i) References to Shipbuilders.--For purposes of this
    section--
                (1) the shipbuilder referred to as ``Electric Boat
            Division'' is the Electric Boat Division of the General Dynamics
            Corporation; and
                (2) the shipbuilder referred to as ``Newport News
            Shipbuilding'' is the Newport News Shipbuilding and Drydock
            Company.

        (j) Submarines Defined by Reference to Fiscal Year.--For purposes of
    this section--
                (1) the term ``fiscal year 1998 submarine'' means the
            submarine referred to in subsection (a)(1)(B); and
                (2) the term ``fiscal year 1999 submarine'' means the
            submarine referred to in subsection (a)(1)(C).

    SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

        (a) Funding.--(1) Subject to paragraph (3), funds authorized to be
    appropriated by section 102(a)(3) may be made available for contracts
    entered into during fiscal year 1996 under subsection (b)(1) of section
    135 of the National Defense Authorization Act for Fiscal Year 1996
    (Public Law 104-106; 110 Stat. 211) for construction for the third of
    the three Arleigh Burke class destroyers covered by that subsection.
    Such funds are in addition to amounts made available for such contracts
    by the second sentence of subsection (a) of that section.
        (2) Subject to paragraph (3), funds authorized to be appropriated by
    section 102(a)(3) may be made available for contracts entered into
    during fiscal year 1997 under subsection (b)(2) of such section 135 for
    construction (including advance procurement) for the Arleigh Burke class
    destroyers covered by such subsection (b)(2).

    [[Page 110 STAT. 2446]]

        (3) The aggregate amount of funds available under paragraphs (1) and
    (2) for contracts referred to in such paragraphs may not exceed
    $3,483,030,000.
        (4) Within the amount authorized to be appropriated by section
    102(a)(3), $525,000,000 is authorized to be appropriated for advance
    procurement for construction for the Arleigh Burke class destroyers
    authorized by subsection (b).
        (b) Authority for Multiyear Procurement of Twelve Vessels.--The
    Secretary of the Navy is authorized, pursuant to section 2306b of title
    10, United States Code, to enter into multiyear contracts for the
    procurement of a total of 12 Arleigh Burke class destroyers at a
    procurement rate of three ships in each of fiscal years 1998, 1999,
    2000, and 2001 in accordance with this subsection and subsection (a)(4),
    subject to the availability of appropriations for such destroyers. A
    contract for construction of one or more vessels that is entered into in
    accordance with this subsection shall include a clause that limits the
    liability of the Government to the contractor for any termination of the
    contract.

    SEC. 123. EA-6B AIRCRAFT REACTIVE JAMMER PROGRAM.

        (a) Limitation.--None of the funds appropriated pursuant to section
    102(a)(1) for modifications or upgrades of EA-6B aircraft may be
    obligated, other than for a reactive jammer program for such aircraft,
    until 30 days after the date on which the Secretary of the Navy submits
    to the congressional defense committees in writing--
                (1) <<NOTE: Certification.>>  a certification that some or
            all of such funds have been obligated for a reactive jammer
            program for EA-6B aircraft; and
                (2) <<NOTE: Reports.>>  a report that sets forth a detailed,
            well-defined program for--
                        (A) developing a reactive jamming capability for EA-
                    6B aircraft; and
                        (B) upgrading the EA-6B aircraft of the Navy to
                    incorporate the reactive jamming capability.

        (b) Contingent Transfer of Funds to Air Force.--(1) If the Secretary
    of the Navy has not submitted the certification and report described in
    subsection (a) to the congressional defense committees before June 1,
    1997, then, on that date, the Secretary of Defense shall transfer to the
    Air Force, out of appropriations available to the Navy for fiscal year
    1997 for procurement of aircraft, the amount equal to the amount
    appropriated to the Navy for fiscal year 1997 for modifications and
    upgrades of EA-6B aircraft.
        (2) Funds transferred to the Air Force pursuant to paragraph (1)
    shall be available for maintaining and upgrading the jamming capability
    of EF-111 aircraft.

    SEC. 124. T-39N TRAINER AIRCRAFT FOR THE NAVY.

        The Secretary of the Navy may, using funds appropriated for fiscal
    year 1996 for procurement of T-39N trainer aircraft for the Navy that
    remain available for obligation for such purpose, enter into a contract
    for the acquisition of T-39N aircraft for naval flight officer training
    that are suitable for low-level training flights. Such a contract may be
    entered into only after the Secretary complies with section 137 of the
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
    106; 110 Stat. 212).

    [[Page 110 STAT. 2447]]

    SEC. 125. PENGUIN MISSILE PROGRAM.

        (a) Multiyear Procurement Authority.--The Secretary of the Navy may,
    in accordance with section 2306b of title 10, United States Code, enter
    into multiyear procurement contracts for the procurement of not more
    than 106 Penguin missile systems.
        (b) Limitation on Total Cost.--The total amount obligated or
    expended for procurement of Penguin missile systems under contracts
    under subsection (a) may not exceed $84,800,000.

                         Subtitle D--Air Force Programs

    SEC. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F-15E AIRCRAFT.

        Section 134 of the National Defense Authorization Act for Fiscal
    Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
    SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-17
                            AIRCRAFT PROGRAM.

        (a) Multiyear Contracts Authorized.--The Secretary of the Air Force
    may enter into one or more multiyear contracts for the procurement of C-
    17 aircraft (including the section 2703 contract entered into before the
    date of the enactment of this Act under the authority of section 2703 of
    the Supplemental Appropriations Act of 1996 (title II of Public Law 104-
    134)). The total number of aircraft contracted to be procured under such
    multiyear contracts may not exceed 80. Any such contract shall be
    entered into in accordance with section 2306b of title 10, United States
    Code (and subject to such modifications as may be authorized by law in
    the maximum period for such contracts specified in subsection (k) of
    such section).
        (b) Requirement To Negotiate Option to Convert Existing Contract to
    Six Program Years.--The Secretary of the Air Force shall negotiate with
    the prime contractor for the C-17 aircraft program so as to achieve a
    contract option for the United States under the section 2703 contract to
    convert the multiyear procurement period under that contract to a period
    of six program years based upon the level of funding for that program
    for fiscal year 1997.
        (c) Contract Period.--A contract entered into after the date of the
    enactment of this Act on a multiyear basis under the authority of
    subsection (a) may (notwithstanding section 2306b(k) of title 10, United
    States Code) be for a period of six program years.
        (d) Section 2703 Contract Defined.--For purposes of this section,
    the term ``section 2703 contract'' means the contract entered into by
    the Secretary of the Air Force on May 31, 1996, with the prime
    contractor for the C-17 aircraft program under the authority of section
    2703 of the Supplemental Appropriations Act of 1996 (title II of Public
    Law 104-134) providing for a multiyear procurement of C-17 aircraft over
    seven program years with an option for the Secretary to convert that
    period to six program years.

    [[Page 110 STAT. 2448]]

                            Subtitle E--Other Matters

    SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE RESERVE
                            COMPONENTS.

        (a) Assessments Required.--Not later than December 1, 1996, each
    officer referred to in subsection (b) shall submit to the congressional
    defense committees an assessment of the modernization priorities
    established for the reserve component or reserve components for which
    that officer is responsible.
        (b) Responsible Officers.--The officers required to submit a report
    under subsection (a) are as follows:
                (1) The Chief of the National Guard Bureau.
                (2) The Chief of Army Reserve.
                (3) The Chief of Air Force Reserve.
                (4) The Director of Naval Reserve.
                (5) The Commanding General, Marine Forces Reserve.
    SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL
                            AGENTS AND MUNITIONS.

        Section 152 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note) is
    amended by adding at the end the following new subsections:
        ``(e) Assessment of Alternative Technologies for Demilitarization of
    Assembled Chemical Munitions.--(1) In addition to the assessment
    required by subsection (c), the Secretary of Defense shall conduct an
    assessment of the chemical demilitarization program for destruction of
    assembled chemical munitions and of the alternative demilitarization
    technologies and processes (other than incineration) that could be used
    for the destruction of the lethal chemical agents that are associated
    with these munitions, while ensuring maximum protection for the general
    public, the personnel involved in the demilitarization program, and the
    environment. The measures considered shall be limited to those that
    would minimize the risk to the public and reduce the total cost of the
    chemical agents and munitions destruction program. The assessment shall
    be conducted without regard to any limitation that would otherwise apply
    to the conduct of such assessment under any provision of law.
        ``(2) The assessment shall be conducted in coordination with the
    National Research Council.
        ``(3) Among the alternatives, the assessment shall include a
    determination of the cost of incineration of the current chemical
    munitions stockpile by building incinerators at each existing facility
    compared to the proposed cost of dismantling those same munitions,
    neutralizing them at each storage site (other than Tooele Army Depot or
    Johnston Atoll), and transporting
    the neutralized remains and all munitions parts to a treatment, storage,
    and disposal facility within the United States that has the necessary
    environmental permits to undertake incineration of the material.

        ``(4) Based on the results of the assessment, the Secretary shall
    develop appropriate recommendations for revision of the chemical
    demilitarization program.
        ``(5) <<NOTE: Reports.>>  Not later than December 31, 1997, the
    Secretary of Defense shall submit to Congress a report on the assessment
    conducted in accordance with paragraph (1) and any recommendations for

    [[Page 110 STAT. 2449]]

    revision of the chemical demilitarization program, including the
    continued development of alternative demilitarization technologies and
    processes other than incineration that could be used for the destruction
    of the lethal chemical agents that are associated with these assembled
    chemical munitions and the chemical munitions demilitarization sites for
    which the selected technologies should be developed.

        ``(f) Pilot Program for Demilitarization of Chemical Agents for
    Assembled Munitions.--(1) If the Secretary of Defense makes a decision
    to continue the development of an alternative demilitarization
    technology or process (other than incineration) that could be used for
    the destruction of the lethal chemical agents that are associated with
    assembled chemical munitions, $25,000,000 shall be available from the
    funds authorized to be appropriated in section 107 of the National
    Defense Authorization Act for Fiscal Year 1997 for the chemical agents
    and munitions destruction program, in order to initiate a pilot program
    using the selected alternative technology or process for the destruction
    of chemical agents that are stored at these sites.
        ``(2) <<NOTE: Notice.>>  Not less than 30 days before using funds to
    initiate the pilot program under paragraph (1), the Secretary shall
    submit notice in writing to Congress of the Secretary's intent to do so.

        ``(3) The pilot program shall be conducted at the selected chemical
    agent and munitions stockpile storage site for which the alternative
    technology or process is recommended.''.
    SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING
                            AND MANUFACTURING SUPPORT INITIATIVE.

        Section 193(a) of the Armament Retooling and Manufacturing Support
    Act of 1992 (subtitle H of title I of Public Law 102-484; 10 U.S.C. 2501
    note) is amended by striking out ``During fiscal years 1993 through
    1996'' and inserting in lieu thereof ``During fiscal years 1993 through
    1998''.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Dual-use technology programs.
    Sec. 204. Defense Special Weapons Agency.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Space launch modernization.
    Sec. 212. Space-Based Infrared System program.
    Sec. 213. Clementine 2 micro-satellite development program.
    Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
    Sec. 215. Live-fire survivability testing of F-22 aircraft.
    Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance
                        aircraft.
    Sec. 217. Cost analysis of F-22 aircraft program.
    Sec. 218. F-22 aircraft program reports.
    Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
    Sec. 220. Joint Advanced Strike Technology (JAST) program.
    Sec. 221. Unmanned aerial vehicles.
    Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
    Sec. 223. Cyclone class patrol craft self-defense.
    Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber
                        Optic
                        Guided Missile (EFOG-M) system.
    Sec. 225. Hydra-70 rocket product improvement program.

    [[Page 110 STAT. 2450]]

    Sec. 226. Federally funded research and development centers.
    Sec. 227. Demilitarization of conventional munitions, rockets, and
                        explosives.
    Sec. 228. Research activities of the Defense Advanced Research Projects
                        Agency relating to chemical and biological warfare
                        defense technology.
    Sec. 229. Certification of capability of United States to prevent
                        illegal importation of nuclear, biological, or
                        chemical weapons.
    Sec. 230. Nonlethal weapons and technologies programs.
    Sec. 231. Counterproliferation support program.

                 Subtitle C--Ballistic Missile Defense Programs

    Sec. 241. Funding for ballistic missile defense programs for fiscal year
                        1997.
    Sec. 242. Certification of capability of United States to defend against
                        single
                        ballistic missile.
    Sec. 243. Report on ballistic missile defense and proliferation.
    Sec. 244. Revision to annual report on ballistic missile defense
                        program.
    Sec. 245. Report on Air Force National Missile Defense Plan.
    Sec. 246. Capability of National Missile Defense system.
    Sec. 247. Actions to limit adverse effects on private sector employment
                        of establishment of National Missile Defense Joint
                        Program Office.
    Sec. 248. ABM Treaty defined.

                            Subtitle D--Other Matters

    Sec. 261. Maintenance and repair at Air Force installations.
    Sec. 262. Report relating to Small Business Innovation Research Program.
    Sec. 263. Amendment to University Research Initiative Support program.
    Sec. 264. Amendments to Defense Experimental Program To Stimulate
                        Competitive Research.
    Sec. 265. Elimination of report on the use of competitive procedures for
                        the award of certain contracts to colleges and
                        universities.
    Sec. 266. Pilot program for transfer of defense technology information
                        to private
                        industry.
    Sec. 267. Research under transactions other than contracts and grants.
    Sec. 268. Desalting technologies.
    Sec. 269. Evaluation of digital video network equipment used in Olympic
                        games.
    Sec. 270. Annual joint warfighting science and technology plan.

             Subtitle E--National Oceanographic Partnership Program

    Sec. 281. Findings.
    Sec. 282. National Oceanographic Partnership Program.

                   Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $4,780,615,000.
                (2) For the Navy, $8,068,299,000.
                (3) For the Air Force, $14,756,366,000.
                (4) For Defense-wide activities, $9,691,293,000, of which--
                        (A) $269,038,000 is authorized for the activities of
                    the Director, Test and Evaluation; and
                        (B) $21,968,000 is authorized for the Director of
                    Operational Test and Evaluation.

    SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

        (a) Fiscal Year 1997.--Of the amounts authorized to be appropriated
    by section 201, $4,031,343,000 shall be available for basic research and
    applied research projects.
        (b) Basic Research and Applied Research Defined.--For purposes of
    this section, the term ``basic research and applied research'' means
    work funded in program elements for defense

    [[Page 110 STAT. 2451]]

    research and development under Department of Defense category 6.1 or
    6.2.

    SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

        (a) Allocation of Funds.--Of the amount appropriated pursuant to the
    authorization in section 201(4), $85,000,000 shall be available for the
    dual-use technology program under this section.
        (b) Designation of Official for Dual-Use Program.--(1) The Secretary
    of Defense shall designate a senior official in the Office of the
    Secretary of Defense to have as that official's sole responsibilities
    developing policy relating to, and ensuring effective implementation of,
    the dual-use technology program of the Department of Defense. In
    carrying out such responsibilities, the official shall ensure--
                (A) that commercial technologies are integrated into current
            and future military systems to the maximum extent practicable;
                (B) that dual-use projects are coordinated with the joint
            warfighting science and technology plan referred to in section
            270; and
                (C) that dual-use projects of the military departments and
            the defense agencies are coordinated and avoid unnecessary
            duplication.

        (2) <<NOTE: Effective date. Termination date.>>  The senior official
    designated under paragraph (1) shall carry out such responsibilities
    during the period beginning on October 1, 1996, and ending on September
    30, 2000. Such official shall report directly to the Under Secretary of
    Defense for Acquisition and Technology.

        (c) Funding Requirement.--Of the amounts appropriated pursuant to
    the authorizations in section 201 for the Department of Defense for
    science and technology programs for fiscal year 1997, at least 5 percent
    of such amounts shall be available only for dual-use projects of the
    Department of Defense. The funds made available under the preceding
    sentence are in addition to the funds made available under subsection
    (a).
        (d) Limitation on Obligations.--Funds made available pursuant to
    subsections (a) and (c) may be used for a dual-use project only if the
    contract, cooperative agreement, or other
    transaction by which the project is carried out is entered into through
    the use of competitive procedures.

        (e) Transfer Authority.--In addition to the transfer authority
    provided in section 1001, the Secretary of Defense may transfer funds
    made available pursuant to subsections (a) and (c) for a dual-use
    project from a military department or defense agency to another military
    department or defense agency to ensure efficient implementation of the
    dual-use technology program. The Secretary may delegate the authority
    provided in the preceding sentence to the senior official designated
    under subsection (b).
        (f) Federal Cost Share.--The share contributed by the Secretary of a
    military department or the head of a defense agency for the cost of a
    dual-use project during fiscal year 1997 may not be greater than 50
    percent of the cost of the project for that fiscal year.

        (g) Report.--At the same time the President submits to Congress the
    budget for fiscal year 1998 pursuant to section 1105(a) of title 31,
    United States Code, the Secretary of Defense shall submit to Congress a
    report that specifies the investment strategy

    [[Page 110 STAT. 2452]]

    for the dual-use technology program to be conducted during fiscal years
    1998, 1999, and 2000.
        (h) Definitions.--In this section:
                (1) The term ``dual-use technology program'' means the
            program of the Department of Defense under which research or
            development of a dual-use technology (as defined in section 2491
            of title 10, United States Code) is carried out and the costs of
            which are shared between the Department of Defense and non-
            Government entities. The term includes the dual-use critical
            technology program established pursuant to section 2511 of title
            10, United States Code.
                (2) The term ``dual-use project'' means a project under the
            dual-use technology program.
                (3) The term ``science and technology program'' means a
            program of a military department under which basic research,
            applied research, or advanced technology development is carried
            out.

    SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

        There is hereby authorized to be appropriated for fiscal year 1997
    the amount of $314,313,000 for the Defense Special Weapons Agency, of
    which--
                (1) $7,900,000 is for procurement;
                (2) $218,330,000 is for research, development, test, and
            evaluation; and
                (3) $88,083,000 is for operations and maintenance.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. SPACE LAUNCH MODERNIZATION.

        (a) Funding.--Funds appropriated pursuant to the authorization of
    appropriations in section 201(3) are authorized to be made available for
    space launch modernization for purposes and in amounts as follows:
                (1) For the Evolved Expendable Launch Vehicle program,
            $44,457,000.
                (2) For a competitive reusable launch vehicle program
            (program element 63401F), $25,000,000.

        (b) Limitations.--(1) Of the funds made available for the reusable
    launch vehicle program pursuant to subsection (a)(2), the total amount
    obligated for such purpose may not exceed the total amount allocated in
    the fiscal year 1997 current operating plan of the National Aeronautics
    and Space Administration for the Reusable Space Launch program of the
    National Aeronautics and Space Administration.
        (2) Of the funds made available for the Evolved Expendable Launch
    Vehicle program pursuant to subsection (a)(1), the total amount
    obligated for such purpose may not exceed $20,000,000 until the
    Secretary of Defense certifies to Congress that the Secretary has made
    available for obligation the funds, if any, that are made available for
    the Reusable Launch Vehicle program pursuant to subsection (a)(2).
        (c) <<NOTE: Plans.>>  Coordination of Engine Testing.--Not later
    than 90 days after the date of the enactment of this Act, the Secretary
    of Defense and the Administrator of the National Aeronautics and Space

    [[Page 110 STAT. 2453]]

    Administration shall submit to Congress a joint plan for coordinating
    and eliminating unnecessary duplication in the operations and planned
    improvements of rocket engine and rocket engine component test
    facilities managed by the Department of the Air Force and the National
    Aeronautics and Space Administration. The plan shall provide, to the
    extent practical, for the development of commonly funded and commonly
    operated facilities.

    SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

        (a) Funding.--Funds appropriated pursuant to the authorization of
    appropriations in section 201(3) are authorized to be made available for
    the Space-Based Infrared System program for purposes and in amounts as
    follows:
                (1) For Space Segment High, $173,290,000.
                (2) For Space Segment Low (the Space and Missile Tracking
            System), $247,221,000.
                (3) For Cobra Brass, $6,930,000.

        (b) <<NOTE: Certification.>>  Limitation.--Not more than
    $100,000,000 of the funds authorized to be made available under
    subsection (a)(1) may be obligated or expended until the Secretary of
    Defense certifies to Congress that the Secretary has made available the
    funds authorized to be made available under subsection (a)(2) for the
    purpose of accelerating the deployment of the Space Segment Low (the
    Space and Missile Tracking System).

        (c) <<NOTE: Review.>>  Program Management.--Before the submission of
    the President's budget for fiscal year 1998, the Secretary of Defense
    shall conduct a review of the appropriate management responsibilities
    for the Space and Missile Tracking System, including whether
    transferring such management responsibility from the Air Force to the
    Ballistic Missile Defense Organization would result in improved program
    efficiencies and support.

    SEC. 213. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

        (a) Amount for Program.--Of the amount authorized to be appropriated
    under section 201(3), $50,000,000 shall be available for the Clementine
    2 micro-satellite near-Earth asteroid interception mission.
        (b) <<NOTE: Certification.>>  Limitation.--Of the funds authorized
    to be appropriated pursuant to this Act for the global positioning
    system (GPS) Block II F Satellite system, not more than $25,000,000 may
    be obligated until the Secretary of Defense certifies to Congress that--
                (1) funds appropriated for fiscal year 1996 for the
            Clementine 2 Micro-Satellite development program have been
            obligated in accordance with Public Law 104-106 and the Joint
            Explanatory Statement of the Committee of Conference
            accompanying S. 1124 (House Report 104-450 (104th Congress,
            second session)); and
                (2) the Secretary has made available for obligation the
            funds appropriated for fiscal year 1997 for the purpose
            specified in subsection (a).
    SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIRCRAFT.

        (a) Authority for Retroactive Waiver.--The Secretary of Defense may,
    in accordance with section 2366(c) of title 10, United States Code,
    waive for the V-22 Osprey aircraft program the survivability tests
    required by that section, notwithstanding that such program has entered
    engineering and manufacturing development.

    [[Page 110 STAT. 2454]]

        (b) Report to Congress.--In exercising the waiver authority in
    section 2366(c) of title 10, United States Code, the Secretary shall
    submit to Congress a report explaining how the Secretary plans to
    evaluate the survivability of the V-22 Osprey aircraft system and
    assessing possible alternatives to realistic survivability testing of
    the system.
        (c) Alternative Survivability Test Requirements.--If the Secretary
    of Defense submits in accordance with section 2366(c)(1) of title 10,
    United States Code, a certification that live-fire testing of the V-22
    Osprey aircraft would be unreasonably expensive and impractical, the
    Secretary shall require that components critical to the survivability of
    the V-22 Osprey aircraft be subjected to live-fire testing under an
    alternative live-fire testing program that, by reason of the number of
    such components tested and the realism of the threat environments under
    which the components are tested, will yield test results that provide a
    sufficient basis for drawing meaningful conclusions about the
    survivability of V-22 Osprey aircraft.
        (d) Funding.--The funds required to carry out any alternative live-
    fire testing of the V-22 Osprey aircraft system shall be made available
    from amounts appropriated for the V-22 Osprey program.

    SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F-22 AIRCRAFT.

        (a) Authority for Retroactive Waiver.--The Secretary of Defense may,
    in accordance with section 2366(c) of title 10, United States Code,
    waive for the F-22 aircraft program the survivability tests required by
    that section, notwithstanding that such program has entered engineering
    and manufacturing development.
        (b) Alternative Survivability Test Requirements.--If the Secretary
    of Defense submits in accordance with section 2366(c)(1) of title 10,
    United States Code, a certification that live-fire testing of the F-22
    aircraft would be unreasonably expensive and impractical, the Secretary
    shall require that components and subsystems critical to the
    survivability of the F-22 aircraft be subjected to live-fire testing
    under an alternative live-fire testing program that, by reason of the
    number of such components and subsystems tested and the realism of the
    threat environments under which the components and subsystems are
    tested, will yield test results that provide a sufficient basis for
    drawing meaningful conclusions about the survivability of F-22 aircraft.
        (c) Funding.--The funds required to carry out any alternative live-
    fire testing of the F-22 aircraft system shall be made available from
    amounts appropriated for the F-22 program.
    SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED
                            RECONNAISSANCE AIRCRAFT.

        (a) <<NOTE: Effective date.>>  Limitation.--Effective on the date of
    the enactment of this Act, not more than $50,000,000 (in fiscal year
    1997 constant dollars) may be obligated or expended for--
                (1) research, development, test, and evaluation for, and
            acquisition and modification of, the F-16 tactical manned
            reconnaissance aircraft program; and
                (2) costs associated with the termination of such program.

        (b) Exception.--The limitation in subsection (a) shall not apply to
    obligations required for improvements planned before the date of the
    enactment of this Act to incorporate the common data link into the F-16
    tactical manned reconnaissance aircraft.

    [[Page 110 STAT. 2455]]

    SEC. 217. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM.

        (a) Review and Report.--The Secretary of Defense shall direct the
    Cost Analysis Improvement Group in the Office of the Secretary of
    Defense to review the F-22 aircraft program, analyze and estimate the
    production costs of the program, and submit to the Secretary a report on
    the results of the review.
        (b) Content of Report.--The report shall include--
                (1) a comparison of--
                        (A) the results of the review, with
                        (B) the results of the last independent estimate of
                    production costs of the program that was prepared by the
                    Cost Analysis Improvement Group in July 1991; and
                (2) a description of any major changes in programmatic
            assumptions that have occurred since the estimate referred to in
            paragraph (1)(B) was made, including any major change in
            assumptions regarding the program schedule, the quantity of
            aircraft to be developed and acquired, and the annual rates of
            production, together with
    an assessment of the effects of such changes on the program.

        (c) Submission of Report.--Not later than March 30, 1997, the
    Secretary shall submit the report to the congressional defense
    committees, together with the Secretary's views on the matters covered
    by the report.
        (d) Limitation on Use of Funds Pending Submission of Report.--Not
    more than 92 percent of the funds appropriated for the F-22 aircraft
    program pursuant to the authorization of appropriations in section
    103(1) may be expended until the Secretary of Defense submits the report
    required under this section.

    SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

        (a) Annual Report.--(1) At the same time that the President submits
    the budget for a fiscal year to Congress pursuant to section 1105(a) of
    title 31, United States Code, the Secretary of Defense shall submit to
    Congress a report on event-based decisionmaking for the F-22 aircraft
    program for that fiscal year. The Secretary shall submit the report for
    fiscal year 1997 not later than October 1, 1996.
        (2) The report for a fiscal year shall include the following:
                (A) A discussion of each decision known within the
            Department of Defense as an ``event-based decision'' that is
            expected to be made during that fiscal year regarding whether
            the F-22 program is to proceed into a new phase or into a new
            administrative subdivision of a phase.
                (B) The criteria known within the Department of Defense as
            ``exit criteria'' to be applied, for purposes of making the
            event-based decision, in determining whether the F-22 aircraft
            program has demonstrated the specific progress necessary for
            proceeding into the new phase or administrative subdivision of a
            phase.

        (b) Report on Event-Based Decisions.--Not later than 30 days after
    an event-based decision has been made for the F-22 aircraft program, the
    Secretary of Defense shall submit to Congress a report on the decision.
    The report shall include the following:
                (1) A discussion of the commitments made, and the
            commitments to be made, under the program as a result of the
            decision.
                (2) The exit criteria applied for purposes of the decision.

    [[Page 110 STAT. 2456]]

                (3) How, in terms of the exit criteria, the program
            demonstrated the specific progress justifying the decision.

    SEC. 219. COST-BENEFIT ANALYSIS OF F/A-18E/F AIRCRAFT PROGRAM.

        (a) Report on Program.--Not later than March 30, 1997, the Secretary
    of Defense shall submit to the congressional defense committees a report
    on the F/A-18E/F aircraft program.
        (b) Content of Report.--The report shall contain the
    following:
                (1) A review of the F/A-18E/F aircraft program.
                (2) An analysis and estimate of the production costs of the
            program for the total number of aircraft realistically expected
            to be procured at each of three annual production rates as
            follows:
                        (A) 18 aircraft.
                        (B) 24 aircraft.
                        (C) 36 aircraft.
                (3) A comparison of the costs and benefits of the program
            with the costs and benefits of the F/A-18C/D aircraft program
            taking into account the operational combat effectiveness of the
            aircraft.

        (c) Limitation on Use of Funds Pending Submission of Report.--Not
    more than 90 percent of the funds authorized to be appropriated by this
    Act for the procurement of F/A-18E/F aircraft may be obligated or
    expended for procurement of such aircraft before the date that is 30
    days after the date on which the congressional defense committees
    receive the report required under subsection (a).

    SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

        (a) Allocation of Funds.--Of the amounts authorized to be
    appropriated pursuant to the authorizations in section 201, $602,069,000
    shall be available only for advanced technology development for the
    Joint Advanced Strike Technology (JAST) program. Of that amount--
                (1) $259,833,000 shall be available only for program element
            63800N in the budget of the Department of Defense for fiscal
            year 1997;
                (2) $263,836,000 shall be available only for program element
            63800F in the budget of the Department of Defense for fiscal
            year 1997; and
                (3) $78,400,000 shall be available only for program element
            63800E in the budget of the Department of Defense for fiscal
            year 1997.

        (b) Analysis of Force Structure.--Of the amounts authorized to be
    appropriated by section 201 for the Joint Advanced Strike Technology
    program, up to $10,000,000 shall be available for the conduct of an
    analysis by the Institute for Defense Analyses of the following:
                (1) The weapon systems force structure required to meet the
            anticipated range of threats projected by the intelligence
            community for the period 2000 through 2025.
                (2) Alternative force mixes, including, at a minimum, the
            following force mixes:
                        (A) Joint Strike Fighter derivative aircraft;
                    remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64,
                    AH-1W, RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2,
                    and

    [[Page 110 STAT. 2457]]

                    B-52 aircraft; and air-to-surface and surface-to-surface
                    weapons systems.
                        (B) Joint Strike Fighter derivative aircraft;
                    remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-
                    16, F-15, F-117, and F-22 aircraft; and air-to-surface
                    and surface-to-surface weapons systems.
                (3) Cost and operational effectiveness of the alternative
            force mixes analyzed under paragraph (2), including
    sensitivity analyses related to system performance, costs, threats, and
    force employment scenarios.
                (4) Required operational capability dates of systems not yet
            in production for the force mixes analyzed under paragraph (2).
                (5) Affordability, commonality, and roles and missions
            considerations related to the alternative force mixes analyzed
            under paragraph (2).

        (c) <<NOTE: Reports.>>  Cost Review of Force Structure Analysis.--
    The Secretary of Defense shall direct the Cost Analysis Improvement
    Group in the Office of the Secretary of Defense to review cost estimates
    made under the analysis conducted under subsection (b) and submit to the
    Secretary a report on the results of the review. The report may include
    comments and additional cost sensitivity analyses.

        (d) Briefing and Report.--(1) Not later than November 15, 1996, the
    Secretary of Defense shall make available to the congressional defense
    committees a briefing on the plan and assumptions for the analysis to be
    conducted under subsection (b).
        (2) Not later than May 15, 1997, the Secretary of Defense shall
    submit to the congressional defense committees a report containing a
    copy of the analysis conducted under subsection (b) and of the cost
    review conducted under subsection (c), together with the views of the
    Secretary on such analysis and cost review.

    SEC. 221. UNMANNED AERIAL VEHICLES.

        (a) Procurement Funding Request.--The funding request for
    procurement for unmanned aerial vehicles for any fiscal year shall be
    set forth under the funding requests for the military departments in the
    budget of the Department of Defense.
        (b) <<NOTE: Effective date.>>  Transfer of Program Management.--
    Program management for the Predator Unmanned Aerial Vehicle, and
    programmed funding for such vehicle for fiscal years 1998, 1999, 2000,
    2001, and 2002 (as set forth in the future-years defense program), shall
    be transferred to the Department of the Air Force, effective October 1,
    1996, or the date of the enactment of this Act, whichever is later.

        (c) Prohibition on Providing Operating Capability from Naval
    Vessels.--No funds authorized to be appropriated by this Act may be
    obligated for purposes of providing the capability of the Predator
    Unmanned Aerial Vehicle to operate from naval
    vessels.

    SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL RECONNAISSANCE SYSTEM.

        Any concepts for an improved Tier III Minus (High Altitude Endurance
    Unmanned Aerial Reconnaissance) system, developed using funds authorized
    to be appropriated under this title, that would increase the unit
    flyaway cost for such system to an amount greater than the unit flyaway
    cost established in either of the original contracts for such system,
    may not be carried out under

    [[Page 110 STAT. 2458]]

    the original contracts, but must instead be carried out under another
    contract that is awarded using competitive procedures.

    SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE.

        (a) Study Required.--The Secretary of Defense shall perform a study
    of the operational requirements for vessel self-defense for the Cyclone
    class patrol craft and a comparative evaluation of the potential means
    for meeting the operational requirements for self-defense of the craft.
    The study shall consider the range of operational scenarios in which the
    craft is expected to be employed.
        (b) Systems To Be Evaluated.--The study under subsection (a) shall
    consider those self-defense systems that could be employed aboard the
    Cyclone class patrol craft, including the Barak ship self-defense
    missile system.
        (c) Report.--Not later than March 31, 1997, the Secretary shall
    submit to Congress a report containing the results of the study under
    subsection (a).
    SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF ENHANCED
                            FIBER OPTIC GUIDED MISSILE (EFOG-M)
                            SYSTEM.

        Section 272(a)(2) of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 239) is amended by
    striking out ``September 30, 1998,'' and inserting in lieu thereof
    ``September 30, 1999,''.

    SEC. 225. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

        (a) Funding Authorization.--Of the amount authorized to be
    appropriated under section 201(1) for the Army for Other Missile Product
    Improvement Programs, $9,000,000 is authorized as specified in
    subsection (b) for completion of the Hydra-70 product improvement
    program authorized for fiscal year 1996.
        (b) Authorized Actions.--Funding is authorized to be appropriated
    for the following:
                (1) Procurement for test and flight qualification of at
            least one nondevelopmental item 2.75-inch composite rocket motor
            propellant type, along with other nondevelopmental item
            candidate motors that use composite propellant as the propulsion
            component.
                (2) Platform integration, including additional quantities of
            the motor chosen for operational certification on the Apache
            attack helicopter.

        (c) Definition.--In this section, the term ``nondevelopmental item''
    has the meaning provided in section 4 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 403).
    SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT
                            CENTERS.

        (a) Centers Covered.--Funds authorized to be appropriated for the
    Department of Defense for fiscal year 1997 under section 201 may be
    obligated to procure work from a federally funded research and
    development center (in this section referred to as an ``FFRDC'') only in
    the case of a center named in the report required by subsection (b) and,
    in the case of such a center, only in an amount not in excess of the
    amount of the proposed funding level set forth for that center in such
    report.

        (b) Report on Allocations for Centers.--(1) Not later than 30 days
    after the date of the enactment of this Act, the Secretary

    [[Page 110 STAT. 2459]]

    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report containing--
                (A) the name of each FFRDC from which work is proposed to be
            procured for the Department of Defense for fiscal year 1997;
                (B) for each such center, the proposed funding level and the
            estimated personnel level for fiscal year 1997; and
                (C) for each such center, an unambiguous definition of the
            unique core competencies required to be maintained for fiscal
            year 1997.

        (2) The total of the proposed funding levels set forth in the report
    for all FFRDCs may not exceed the amount set forth in subsection (d).
        (c) Limitation Pending Submission of Report.--Not more than 15
    percent of the funds authorized to be appropriated for the Department of
    Defense for fiscal year 1997 for FFRDCs under section 201 may be
    obligated to procure work from an FFRDC until the Secretary of Defense
    submits the report required by subsection (b).
        (d) Funding.--(1) Subject to paragraph (2), of the amounts
    authorized to be appropriated by section 201, not more than a total of
    $1,214,650,000 may be obligated to procure services from the FFRDCs
    named in the report required by subsection (b).
        (2) The limitation in paragraph (1) does not apply to funds
    obligated for the procurement of equipment for FFRDCs.
        (e) Authority To Waive Funding Limitation.--The Secretary of Defense
    may waive the limitation regarding the maximum funding amount that
    applies under subsection (a) to an FFRDC. <<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.
    SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS,
                            ROCKETS, AND EXPLOSIVES.

        (a) Establishment of Conventional Munitions, Rockets, and Explosives
    Demilitarization Program.--The Secretary of Defense shall establish an
    integrated program for the development and demonstration of technologies
    for the demilitarization and disposal of conventional munitions,
    rockets, and explosives in a manner that complies with applicable
    environmental laws.
        (b) <<NOTE: Effective date.>>  Duration of Program.--The program
    established pursuant to subsection (a) shall be in effect for a period
    of at least five years, beginning with fiscal year 1997.

        (c) Funding.--Of the amount authorized to be appropriated in section
    201, $15,000,000 is authorized to be appropriated for the program
    established pursuant to subsection (a). The funding request for the
    program shall be set forth separately in the budget

    [[Page 110 STAT. 2460]]

    justification documents for the budget of the Department of Defense for
    each fiscal year during which the program is in effect.
        (d) Reports.--The Secretary of Defense shall submit to Congress a
    report on the plan for the program established pursuant to subsection
    (a) at the same time the President submits to Congress the budget for
    fiscal year 1998. The Secretary shall submit an updated version of such
    report, setting forth in detail the progress of the program, at the same
    time the President submits the budget for each fiscal year after fiscal
    year 1998 during which the program is in effect.
    SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED RESEARCH
                            PROJECTS AGENCY RELATING TO CHEMICAL AND
                            BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

        (a) Authority.--Section 1701(c) of the National Defense
    Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat.
    1853; 50 U.S.C. 1522) is amended--
                (1) by inserting ``(1)'' before ``The Secretary''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Director of the Defense Advanced Research Projects Agency
    may conduct a program of basic and applied research and advanced
    technology development on chemical and biological warfare defense
    technologies and systems. In conducting such program, the Director shall
    seek to avoid unnecessary duplication of the activities under the
    program with chemical and biological warfare defense activities of the
    military departments and defense agencies and shall coordinate the
    activities under the program with those of the military departments and
    defense agencies.''.
        (b) Funding.--Section 1701(d) of such Act is amended--
                (1) in paragraph (1), by striking out ``military
            departments'' and inserting in lieu thereof ``Department of
            Defense'';
                (2) in paragraph (2), by inserting after ``requests for the
            program'' in the first sentence the following: ``(other than for
            activities under the program conducted by the Defense Advanced
            Research Projects Agency under subsection (c)(2))'';
                (3) by redesignating paragraph (3) as paragraph (4); and
                (4) by inserting after paragraph (2) the following new
            paragraph (3):

        ``(3) The program conducted by the Defense Advanced Research
    Projects Agency under subsection (c)(2) shall be set forth as a separate
    program element in the budget of that agency.''.
    SEC. 229. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF
                            UNITED STATES TO PREVENT ILLEGAL
                            IMPORTATION OF NUCLEAR, BIOLOGICAL, AND
                            CHEMICAL WEAPONS.

        Not later than 15 days after the date of the enactment of this Act,
    the President shall submit to Congress a certification in writing
    stating specifically whether or not the United States has the capability
    (as of the date of the certification) to prevent the illegal importation
    of nuclear, biological, and chemical weapons into the United States and
    its possessions.

    SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

        (a) Funding.--Of the amount authorized to be appropriated under
    section 201(2), $15,000,000 shall be available for joint service
    research, development, test, and evaluation of nonlethal weapons and
    nonlethal technologies under the program element established pursuant to
    subsection (b).

    [[Page 110 STAT. 2461]]

        (b) New Program Element Required.--The Secretary of Defense shall
    establish a new program element for the funds authorized to be
    appropriated under subsection (a). The funds within that program element
    shall be administered by the executive agent designated for joint
    service research, development, test, and evaluation of nonlethal weapons
    and nonlethal technologies.

    SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

        (a) Funding.--Of the funds authorized to be appropriated to the
    Department of Defense under section 201(4), $186,200,000 shall be
    available for the Counterproliferation Support Program, of which
    $75,000,000 shall be available for a tactical antisatellite technologies
    program.
        (b) Additional Authority To Transfer Authorizations.--(1) In
    addition to the transfer authority provided in section 1001, upon
    determination by the Secretary of Defense that such action is necessary
    in the national interest, the Secretary may transfer amounts of
    authorizations made available to the Department of Defense in this
    division for fiscal year 1997 to counterproliferation programs,
    projects, and activities identified as areas for progress by the
    Counterproliferation Program Review Committee established by section
    1605 of the National Defense Authorization Act for Fiscal Year 1994 (22
    U.S.C. 2751 note). Amounts of authorizations so transferred shall be
    merged with and be available for the same purposes as the authorization
    to which transferred.
        (2) The total amount of authorizations transferred under the
    authority of this subsection may not exceed $50,000,000.
        (3) The authority provided by this subsection to transfer
    authorizations--
                (A) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred; and
                (B) may not be used to provide authority for an item that
            has been denied authorization by Congress.

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

        (c) Limitation on Use of Funds for Technical Studies and Analyses
    Pending Release of Funds.--(1) None of the funds authorized to be
    appropriated to the Department of Defense for fiscal year 1997 for
    program element 605104D, relating to technical studies and analyses, may
    be obligated or expended until the funds referred to in paragraph (2)
    have been released to the program manager of the tactical anti-satellite
    technology program for implementation of that program.
        (2) The funds for release referred to in paragraph (1) are as
    follows:
                (A) Funds authorized to be appropriated by section 218(a) of
            the National Defense Authorization Act for Fiscal Year 1996
            (Public Law 104-106; 110 Stat. 222) that are available for the
            program referred to in paragraph (1).
                (B) Funds authorized to be appropriated to the Department
            for fiscal year 1997 by this Act for the Counterproliferation

    [[Page 110 STAT. 2462]]

            Support Program that are to be made available for that program.

                 Subtitle C--Ballistic Missile Defense Programs

    SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS FOR
                            FISCAL YEAR 1997.

        (a) Program Amounts.--Of the amount appropriated pursuant to section
    201(4), the following amounts may be obligated for the following systems
    managed by the Ballistic Missile Defense Organization:
                (1) For the Theater High Altitude Area Defense (THAAD)
            System, $621,798,000.
                (2) For the Navy Upper Tier (Theater Wide) system,
            $304,171,000.
                (3) For the National Missile Defense System, $858,437,000.
                (4) For the Corps Surface-to-Air Missile (SAM)/Medium
            Extended Air Defense System (MEADS), $56,200,000.

        (b) <<NOTE: Certification.>>  Limitation.--None of the funds
    appropriated or otherwise made available for the Department of Defense
    pursuant to this or any other Act may be obligated or expended by the
    Office of the Under Secretary of Defense for Acquisition and Technology
    for official representation activities, or related activities, until the
    Secretary of Defense certifies to Congress that--
                (1) the Secretary has made available for obligation the
            funds provided under subsection (a) for the purposes specified
            in that subsection and in the amounts appropriated pursuant to
            that subsection; and
                (2) the Secretary has included the Navy Upper Tier theater
            missile defense system in the theater missile defense core
            program.

        (c) Limitations.--Not more than $15,000,000 of the amount available
    for the Corps SAM/MEADS program under
    subsection (a) may be obligated until the Secretary of Defense submits
    to the congressional defense committees the following:
                (1) An initial program estimate for the Corps SAM/MEADS
            program, including a tentative schedule of major milestones and
            an estimate of the total program cost through initial
            operational capability.
                (2) <<NOTE: Reports.>>  A report on the options associated
            with the use of existing systems, technologies, and program
            management mechanisms to satisfy the requirement for the Corps
            surface-to-air missile, including an assessment of cost and
            schedule implications in relation to the program estimate
            submitted under paragraph (1).
                (3) <<NOTE: Certification.>>  A certification that there
            will be no increase in overall United States funding commitment
            to the project definition and validation phase of the Corps SAM/
            MEADS program as a result of the withdrawal of France from
            participation in the program.
    SEC. 242. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF
                            UNITED STATES TO DEFEND AGAINST SINGLE
                            BALLISTIC MISSILE.

        Not later than 15 days after the date of the enactment of this Act,
    the President shall submit to Congress a certification

    [[Page 110 STAT. 2463]]

    in writing stating specifically whether or not the United States has the
    military capability (as of the time of the certification) to intercept
    and destroy a single ballistic missile launched at the territory of the
    United States.
    SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO-
                            LIFERATION.

        The Secretary of Defense shall submit to Congress a report on
    ballistic missile defense and the proliferation of weapons of mass
    destruction, including nuclear, chemical, and biological weapons, and
    the missiles that can be used to deliver them. The report shall be
    submitted not later than December 31, 1996, and shall include the
    following:
                (1) An assessment of how United States theater missile
            defenses contribute to United States efforts to prevent
            proliferation, including an evaluation of the specific effect
            United States theater missile defense systems can have on
            dissuading other states from acquiring ballistic missiles.
                (2) An assessment of how United States national missile
            defenses contribute to United States efforts to prevent
            proliferation.
                (3) An assessment of the effect of the lack of national
            missile defenses on the desire of other states to acquire
            ballistic missiles and an evaluation of the types of missiles
            other states might seek to acquire as a result.
                (4) A detailed review of the linkages between missile
            defenses (both theater and national) and each of the categories
            of counterproliferation activities identified by the Secretary
            of Defense as part of the Defense Counterproliferation
            Initiative announced by the Secretary in December 1993.
                (5) A description of how theater and national ballistic
            missile defenses can augment the effectiveness of other
            counterproliferation tools.
    SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE DEFENSE
                            PROGRAM.

        Section 224(b) of the National Defense Authorization Act for Fiscal
    Years 1990 and 1991 (10 U.S.C. 2431 note) is amended--
                (1) by striking out paragraphs (3), (4), and (10);
                (2) by redesignating paragraphs (5) and (6) as paragraphs
            (3) and (4), respectively;
                (3) by redesignating paragraph (7) as paragraph (5) and in
            that paragraph by striking out ``of the Soviet Union'' and ``for
            the Soviet Union'';
                (4) by redesignating paragraph (8) as paragraph (6); and
                (5) by redesignating paragraph (9) as paragraph (7) and in
            that paragraph--
                        (A) by striking out ``of the Soviet Union'' in
                    subparagraph (A);
                        (B) by striking out subparagraphs (C) through (F);
                    and
                        (C) by redesignating subparagraph (G) as
                    subparagraph (C).

    SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

        Not later than 120 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to the Committee on Armed Services
    of the Senate and the Committee on National

    [[Page 110 STAT. 2464]]

    Security of the House of Representatives a report on the following
    matters regarding the National Missile Defense Plan of the Air Force:
                (1) The cost and operational effectiveness of a system that
            could be developed pursuant to that plan.
                (2) The arms control implications of such a system.
                (3) The growth potential of such a system to meet future
            threats.
                (4) The recommendations of the Secretary for improvements to
            that plan.

    SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

        The Secretary of Defense shall ensure that any National Missile
    Defense system deployed by the United States is capable of defeating the
    threat posed by the Taepo Dong II missile of North Korea.
    SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR
                            EMPLOYMENT OF ESTABLISHMENT OF NATIONAL
                            MISSILE DEFENSE JOINT PROGRAM OFFICE.

        The Secretary of Defense shall take such actions as are necessary in
    connection with the establishment of the National Missile Defense Joint
    Program Office within the Ballistic Missile Defense Organization to
    ensure that the establishment of that office does not make it necessary
    for a Federal Government contractor to reduce significantly the number
    of persons employed by that contractor for supporting the national
    missile defense development program at any particular location outside
    the National Capital Region (as defined in section 2674(f)(2) of title
    10, United States Code).

    SEC. 248. ABM TREATY DEFINED.

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

                            Subtitle D--Other Matters

    SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS.

        (a) Allocation of Funds.--The Secretary of the Air Force shall
    allocate funds authorized to be appropriated by this title and title III
    of this Act for maintenance and repair of real property at military
    installations of the Department of the Air Force without regard to
    whether the installation is supported with funds authorized by this
    title or title III of this Act.
        (b) Mixing of Funds Prohibited on Individual Projects.--The
    Secretary of the Air Force may not combine funds authorized to be
    appropriated by this title and funds authorized to be appropriated by
    title III for an individual project for maintenance and repair of real
    property at a military installation of the Department of the Air Force.

    [[Page 110 STAT. 2465]]

    SEC. 262. REPORT RELATING TO SMALL BUSINESS INNOVATION RESEARCH
                            PROGRAM.

        Not later than March 30, 1997, the Comptroller General shall submit
    to Congress and to the Secretary of Defense a report setting forth the
    following with respect to the Small Business Innovation Research Program
    (as defined by section 2491(11) of title 10, United States Code):
                (1) An assessment of whether there has been a demonstrable
            reduction in the quality of research performed under funding
            agreements awarded by the Department of Defense under the
            program since fiscal year 1995.
                (2) An assessment of the degree to which competitive
            procedures are being followed throughout the military
            departments and defense agencies in awarding funding agreements
            under the program.
                (3) An assessment of the degree to which technologies
            developed through the program are or are likely to be used in
            military projects and programs.
    SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT
                            PROGRAM.

        Section 802(c) of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 2358 note) is
    amended by striking out ``fiscal years before the fiscal year in which
    the institution submits a proposal'' and inserting in lieu thereof
    ``most recent fiscal years for which complete statistics are available
    when proposals are requested''.
    SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE
                            COMPETITIVE RESEARCH.

        Section 257(d) of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is
    amended--
                (1) in paragraph (1)--
                        (A) by striking out ``Director of the National
                    Science Foundation'' and inserting in lieu thereof
                    ``Under Secretary of Defense for Acquisition and
                    Technology''; and
                        (B) by striking out ``and shall notify the Director
                    of Defense Research and Engineering of the States so
                    designated''; and
                (2) in paragraph (2)--
                        (A) in the matter preceding subparagraph (A)--
                              (i) by striking out ``Director of the National
                          Science Foundation'' and inserting in lieu thereof
                          ``Under Secretary of Defense for Acquisition and
                          Technology''; and
                              (ii) by striking out ``as determined by the
                          Director'' and inserting in lieu thereof ``as
                          determined by the Under Secretary'';
                        (B) in subparagraph (A), by striking out ``(to be
                    determined in consultation with the Secretary of
                    Defense);'' and inserting in lieu thereof ``; and'';
                        (C) by striking out ``; and'' at the end of
                    subparagraph (B) and inserting in lieu thereof a period;
                    and
                        (D) by striking out subparagraph (C).

    [[Page 110 STAT. 2466]]

    SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE
                            PROCEDURES FOR THE AWARD OF CERTAIN
                            CONTRACTS TO COLLEGES AND UNIVERSITIES.

        Section 2361 of title 10, United States Code, is amended by striking
    out subsection (c).
    SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY
                            INFORMATION TO PRIVATE INDUSTRY.

        (a) Program Required.--The Secretary of Defense shall carry out a
    pilot program to demonstrate online transfers of information on defense
    technologies to businesses in the private sector through an interactive
    data network involving Small Business Development Centers of
    institutions of higher education.
        (b) Computerized Data Base of Defense Technologies.--
    (1) <<NOTE: Contracts.>>  Under the pilot program, the Secretary shall
    enter into an agreement with the head of an eligible institution of
    higher education that provides for such institution--
                (A) to develop and maintain a computerized data base of
            information on defense technologies;
                (B) to make such information available online to--
                        (i) businesses; and
                        (ii) other institutions of higher education entering
                    into partnerships with the Secretary under subsection
                    (c).

        (2) The online accessibility may be established by means of any of,
    or any combination of, the following:
                (A) Digital teleconferencing.
                (B) International Signal Digital Network lines.
                (C) Direct modem hookup.

        (c) Partnership <<NOTE: Contracts.>> Network.--Under the pilot
    program, the Secretary shall seek to enter into agreements with the
    heads of several eligible institutions of higher education having strong
    business education programs to provide for the institutions of higher
    education entering into such agreements--
                (1) to establish interactive computer links with the data
            base developed and maintained under subsection (b); and
                (2) to assist the Secretary in making information on defense
            technologies available online to the broadest practicable
            number, types, and sizes of businesses.

        (d) Eligible Institutions.--For the purposes of this section, an
    institution of higher education is eligible to enter into an agreement
    under subsection (b) or (c) if the institution has a Small Business
    Development Center.
        (e) Defense Technologies Covered.--(1) The Secretary shall designate
    the technologies to be covered by the pilot program from among the
    existing and experimental technologies that the Secretary determines--
                (A) are useful in meeting Department of Defense needs; and
                (B) should be made available under the pilot program to
            facilitate the satisfaction of such needs by private sector
            sources.

        (2) Technologies covered by the program should include technologies
    useful for defense purposes that can also be used for nondefense
    purposes (with or without modification).
        (f) Definitions.--In this section:

    [[Page 110 STAT. 2467]]

                (1) The term ``Small Business Development Center'' means a
            small business development center established pursuant to
            section 21 of the Small Business Act (15 U.S.C. 648).
                (2) The term ``defense technology'' means a technology
            designated by the Secretary of Defense under subsection (d).
                (3) The term ``partnership'' means an agreement entered into
            under subsection (c).

        (g) Termination of Pilot Program.--The pilot program shall terminate
    one year after the Secretary enters into an agreement under subsection
    (b).
        (h) Authorization of Appropriations.--Of the amount authorized to be
    appropriated under section 201(4) for university research initiatives,
    $3,000,000 is available for the pilot program.
    SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND
                            GRANTS.

        (a) Conditions for Use of Authority.--Subsection (e) of section 2371
    of title 10, United States Code, is amended--
                (1) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B);
                (2) by inserting ``and'' after the semicolon at the end of
            subparagraph (A), as so redesignated;
                (3) by striking out ``; and'' at the end of subparagraph
            (B), as so redesignated, and inserting in lieu thereof a period;
                (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
                (5) by striking out paragraph (3) and inserting in lieu
            thereof the following:

        ``(2) A cooperative agreement containing a clause under subsection
    (d) or a transaction authorized by subsection (a) may be used for a
    research project when the use of a standard contract, grant, or
    cooperative agreement for such project is not feasible or
    appropriate.''.
        (b) Revised Requirement for Annual Report.--Section 2371 of such
    title is amended by striking out subsection (h) and inserting in lieu
    thereof the following:
        ``(h) Annual Report.--(1) Not later than 90 days after the end of
    each fiscal year, the Secretary of Defense shall submit to the Committee
    on Armed Services of the Senate and the Committee on National Security
    of the House of Representatives a report on the use by the Department of
    Defense during such fiscal
    year of--
                ``(A) cooperative agreements authorized under section 2358
            of this title that contain a clause under subsection (d); and
                ``(B) transactions authorized by subsection (a).

        ``(2) The report shall include, with respect to the cooperative
    agreements and other transactions covered by the report, the
    following:
                ``(A) The technology areas in which research projects were
            conducted under such agreements or other transactions.
                ``(B) The extent of the cost-sharing among Federal
            Government and non-Federal sources.
                ``(C) The extent to which the use of the cooperative
            agreements and other transactions--
                        ``(i) has contributed to a broadening of the
                    technology and industrial base available for meeting
                    Department of Defense needs; and

    [[Page 110 STAT. 2468]]

                        ``(ii) has fostered within the technology and
                    industrial base new relationships and practices that
                    support the national security of the United States.
                ``(D) The total amount of payments, if any, that were
            received by the Federal Government during the fiscal year
            covered by the report pursuant to a clause described in
            subsection (d) that was included in the cooperative agreements
            and other transactions, and the amount of such payments, if any,
            that were credited to each account established under subsection
            (f).''.

        (c) Division of Section Into Distinct Provisions by Subject
    Matter.--(1) Chapter 139 of title 10, United States Code, is amended--
                (A) by inserting before the last subsection of section 2371
            (relating to cooperative research and development agreements
            under the Stevenson-Wydler Technology Innovation Act of 1980)
            the following:
    ``Sec. 2371a. Cooperative research and development agreements
                          under Stevenson-Wydler Technology Innovation
                          Act of 1980'';
                (B) in section 2371a (as designated by the amendment made by
            subparagraph (A)), by striking out ``(i) Cooperative Research
            and Development Agreements Under Stevenson-Wydler Technology
            Innovation Act of 1980.--''; and
                (C) in the table of sections at the beginning of such
            chapter, by inserting after the item relating to section 2371
            the following:

    ``2371a. Cooperative research and development agreements under
                  Stevenson-Wydler Technology Innovation Act of 1980.''.

        (2) Section 2358(d) of such title is amended by striking out
    ``section 2371'' and inserting in lieu thereof ``sections 2371 and
    2371a''.

    SEC. 268. DESALTING TECHNOLOGIES.

        (a) Findings.--Congress makes the following findings:
                (1) Access to scarce fresh water is likely to be a cause of
            future military conflicts in the Middle East and has a direct
            impact on stability and security in the region.
                (2) The Middle East is an area of vital and strategic
            importance to the United States.
                (3) The United States has played a military role in the
            Middle East, most recently in the Persian Gulf War, and may
            likely be called upon again to deter aggression in the region.
                (4) United States troops have used desalting technologies to
            guarantee the availability of fresh water in past deployments in
            the Middle East.
                (5) Adequate, efficient, and cheap access to high-quality
            fresh water will be vital to maintaining the readiness and
            sustainability of troops of both the United States and its
            allies.

        (b) Sense of Congress.--It is the sense of Congress that, as
    improved access to fresh water will be an important factor in helping
    prevent future conflicts in the Middle East, the United States should,
    in cooperation with its allies, promote and invest in technologies to
    reduce the costs of converting saline water into fresh water.

    [[Page 110 STAT. 2469]]

        (c) Funding for Research and Development.--Of the amounts authorized
    to be appropriated by this title, the Secretary shall place greater
    emphasis on making funds available for research and development into
    efficient and economical processes and methods for converting saline
    water into fresh water.
    SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED IN
                            OLYMPIC GAMES.

        (a) Evaluation.--The Secretary of Defense shall evaluate the digital
    video network equipment used in the 1996 Olympic games to determine
    whether such equipment would be the most appropriate equipment for use
    as a test bed for the military application of commercial off-the-shelf
    advanced technology linking multiple continents, multiple satellites,
    and multiple theaters of operations by compressed digital audio and
    visual broadcasting technology.
        (b) Report.--Not later than April 1, 1997, the Secretary of Defense
    shall submit to Congress a report on the results of the evaluation
    conducted under subsection (a).
    SEC. 270. ANNUAL <<NOTE: 10 USC 2501 note.>> JOINT WARFIGHTING
                            SCIENCE AND TECHNOLOGY PLAN.

        (a) Annual Plan Required.--On March 1 of each year, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    plan for ensuring that the science and technology program of the
    Department of Defense supports the development of the future joint
    warfighting capabilities identified as priority requirements for the
    Armed Forces.
        (b) First Plan.--The first plan under subsection (a) shall be
    submitted not later than March 1, 1997.

             Subtitle E--National Oceanographic Partnership Program

    SEC. 281. <<NOTE: 10 USC 7901 note.>>  FINDINGS.

        Congress finds the following:
                (1) The oceans and coastal areas of the United States are
            among the Nation's most valuable natural resources, making
            substantial contributions to economic growth, quality of life,
            and national security.
                (2) Oceans drive global and regional climate. Hence, they
            contain information affecting agriculture, fishing, and the
            prediction of severe weather.
                (3) Understanding of the oceans through basic and applied
            research is essential for using the oceans wisely and protecting
            their limited resources. Therefore, the United States should
            maintain its world leadership in oceanography as one key to its
            competitive future.
                (4) Ocean research and education activities take place
            within Federal agencies, academic institutions, and industry.
            These entities often have similar requirements for research
            facilities, data, and other resources (such as oceanographic
            research vessels).
                (5) The need exists for a formal mechanism to coordinate
            existing partnerships and establish new partnerships for the
            sharing of resources, intellectual talent, and facilities in the

    [[Page 110 STAT. 2470]]

            ocean sciences and education, so that optimal use can be made of
            this most important natural resource for the well-being of all
            Americans.

    SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

        (a) Program Required.--(1) Subtitle C of title 10, United States
    Code, is amended by adding after chapter 663 the following new chapter:

            ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

    ``Sec.
    ``7901. National Oceanographic Partnership Program.
    ``7902. National Ocean Research Leadership Council.
    ``7903. Ocean Research Advisory Panel.

    ``Sec. 7901. National Oceanographic Partnership Program

        ``(a) Establishment.--The Secretary of the Navy shall establish a
    program to be known as the `National Oceanographic Partnership Program'.
        ``(b) Purposes.--The purposes of the program are as follows:
                ``(1) To promote the national goals of assuring national
            security, advancing economic development, protecting quality of
            life, and strengthening science education and communication
            through improved knowledge of the ocean.
                ``(2) To coordinate and strengthen oceanographic efforts in
            support of those goals by--
                        ``(A) identifying and carrying out partnerships
                    among Federal agencies, academia, industry, and other
                    members of the oceanographic scientific community in the
                    areas of data, resources, education, and communication;
                    and
                        ``(B) reporting annually to Congress on the program.

    ``Sec. 7902. National Ocean Research Leadership Council

        ``(a) Council.--There is a National Ocean Research Leadership
    Council (hereinafter in this chapter referred to as the `Council').
        ``(b) Membership.--The Council is composed of the following members:
                ``(1) The Secretary of the Navy.
                ``(2) The Administrator of the National Oceanic and
            Atmospheric Administration.
                ``(3) The Director of the National Science Foundation.
                ``(4) The Administrator of the National Aeronautics and
            Space Administration.
                ``(5) The Deputy Secretary of Energy.
                ``(6) The Administrator of the Environmental Protection
            Agency.
                ``(7) The Commandant of the Coast Guard.
                ``(8) The Director of the Geological Survey of the
            Department of the Interior.
                ``(9) The Director of the Defense Advanced Research Projects
            Agency.
                ``(10) The Director of the Minerals Management Service of
            the Department of the Interior.
                ``(11) The President of the National Academy of Sciences,
            the President of the National Academy of Engineering, and the
            President of the Institute of Medicine.

    [[Page 110 STAT. 2471]]

                ``(12) The Director of the Office of Science and Technology.
                ``(13) The Director of the Office of Management and Budget.
                ``(14) One member appointed by the chairman from among
            individuals who will represent the views of ocean industries.
                ``(15) One member appointed by the chairman from among
            individuals who will represent the views of State governments.
                ``(16) One member appointed by the chairman from among
            individuals who will represent the views of academia.
                ``(17) One member appointed by the chairman from among
            individuals who will represent such other views as the chairman
            considers appropriate.

        ``(c) Chairman and Vice Chairman.--(1) Except as provided in
    paragraph (2), the chairman and vice chairman of the Council shall be
    appointed every two years by a selection committee of the Council
    composed of, at a minimum, the Secretary of the Navy, the Administrator
    of the National Oceanic and Atmospheric Administration, and the Director
    of the National Science Foundation. The term of office of the chairman
    and vice chairman shall be two years. A person who has previously served
    as chairman or vice chairman may be reappointed.
        ``(2) The first chairman of the Council shall be the Secretary of
    the Navy. The first vice chairman of the Council shall be the
    Administrator of the National Oceanic and Atmospheric Administration.
        ``(d) Term of Office.--The term of office of a member of the Council
    appointed under paragraph (14), (15), (16), or (17) of subsection (b)
    shall be two years, except that any person appointed to fill a vacancy
    occurring before the expiration of the term for which his predecessor
    was appointed shall be appointed for the remainder of such term.
        ``(e) Responsibilities.--The Council shall have the following
    responsibilities:
                ``(1) To prescribe policies and procedures to implement the
            National Oceanographic Partnership Program.
                ``(2) To review, select, and identify and allocate funds for
            partnership projects for implementation under the program, based
            on the following criteria:
                        ``(A) Whether the project addresses critical
                    research objectives or operational goals, such as data
                    accessibility and quality assurance, sharing of
                    resources, education, or communication.
                        ``(B) Whether the project has, or is designed to
                    have, broad participation within the oceanographic
                    community.
                        ``(C) Whether the partners have a long-term
                    commitment to the objectives of the project.
                        ``(D) Whether the resources supporting the project
                    are shared among the partners.
                        ``(E) Whether the project has been subjected to
                    adequate peer review.
                ``(3) To assess whether there is a need for a facility (or
            facilities) to provide national centralization of oceanographic
            data, and to establish such a facility or facilities if
            determined necessary. In conducting the assessment, the Council
            shall review, at a minimum, the following:
                        ``(A) The need for a national oceanographic data
                    center.
                        ``(B) The need for a national coastal data center.
                        ``(C) Accessibility by potential users of such
                    centers.

    [[Page 110 STAT. 2472]]

                        ``(D) Preexisting facilities and expertise.

        ``(f) Annual Report.--Not later than March 1 of each year, the
    Council shall submit to Congress a report on the National Oceanographic
    Partnership Program. The report shall contain the following:
                ``(1) A description of activities of the program carried out
            during the fiscal year before the fiscal year in which the
            report is prepared, together with a list of the members of the
            Ocean Research Advisory Panel and any working groups in
            existence during the fiscal year covered.
                ``(2) A general outline of the activities planned for the
            program during the fiscal year in which the report is prepared.
                ``(3) A summary of projects continued from the fiscal year
            before the fiscal year in which the report is prepared and
            projects expected to be started during the fiscal year in which
            the report is prepared and during the following fiscal year.
                ``(4) A description of the involvement of the program with
            Federal interagency coordinating entities.
                ``(5) The amounts requested, in the budget submitted to
            Congress pursuant to section 1105(a) of title 31, United States
            Code, for the fiscal year following the fiscal year in which the
            report is prepared, for the programs, projects, and activities
            of the program and the estimated expenditures under such
            programs, projects, and activities during such following fiscal
            year.

        ``(g) Partnership Program Office.--(1) <<NOTE: Establishment.>>  The
    Council shall establish a partnership program office for the National
    Oceanographic Partnership Program. The Council shall use competitive
    procedures in selecting an operator for the partnership program office.

        ``(2) The Council shall assign the following duties to the
    partnership program office:
                ``(A) To establish and oversee working groups to propose
            partnership projects to the Council and advise the Council on
            such projects.
                ``(B) To manage the process for proposing partnership
            projects to the Council, including managing peer review of such
            projects.
                ``(C) <<NOTE: Reports.>>  To submit to the Council an annual
            report on the status of all partnership projects and activities
            of the office.
                ``(D) Any additional duties for the administration of the
            National Oceanographic Partnership Program that the Council
            considers appropriate.

        ``(3) The Council shall supervise the performance of duties by the
    partnership program office.

        ``(h) Contract and Grant Authority.--The Council may authorize one
    or more of the departments or agencies represented on the Council to
    enter into contracts and make grants, using funds appropriated pursuant
    to an authorization of appropriations for the National Oceanographic
    Partnership Program, for the purpose of implementing the program and
    carrying out the responsibilities of the Council.

        ``(i) Establishment and Forms of Partnership Projects.--(1) A
    partnership project under the National Oceanographic Partnership Program
    may be established by any instrument that the Council considers
    appropriate, including a memorandum of under

    [[Page 110 STAT. 2473]]

    standing, a cooperative research and development agreement, and any
    similar instrument.
        ``(2) Projects under the program may include demonstration projects.

    ``Sec. 7903. Ocean Research Advisory Panel

        ``(a) Establishment.--The Council shall establish an Ocean Research
    Advisory Panel consisting of not less than 10 and not more than 18
    members appointed by the Council from among persons eminent in the
    fields of marine science or marine policy, or related fields, and who
    are representative, at a minimum, of the interests of government,
    academia, and industry.
        ``(b) Responsibilities.--The Council shall assign to the Advisory
    Panel responsibilities that the Council considers appropriate.''.
        (2) The table of chapters at the beginning of subtitle C of title
    10, United States Code, and the table of chapters at the beginning of
    part IV of such subtitle, are each amended by inserting after the item
    relating to chapter 663 the following:

    ``665. National Oceanographic Partnership Program................7901''.

        (b) Initial <<NOTE: 10 USC 7902 note.>> Appointments of Council
    Members.--The Secretary of the Navy shall make the appointments required
    by section 7902(b) of title 10, United States Code, as added by
    subsection (a)(1), not later than December 1, 1996.

        (c) <<NOTE: 10 USC 7903 note.>>  Initial Appointments of Advisory
    Panel Members.--The National Ocean Research Leadership Council
    established by section 7902 of title 10, United States Code, as added by
    subsection (a)(1), shall make the appointments required by section 7903
    of such title not later than January 1, 1997.

        (d) <<NOTE: 10 USC 7902 note.>>  First Annual Report of National
    Ocean Research Leadership Council.--The first annual report required by
    section 7902(f) of title 10, United States Code, as added by subsection
    (a)(1), shall be submitted to Congress not later than March 1, 1997. The
    first report shall include, in addition to the information required by
    such section, information about the terms of office, procedures, and
    responsibilities of the Ocean Research Advisory Panel established by the
    Council.

        (e) Authorization.--(1) Of the amount authorized to be appropriated
    to the Department of the Navy by section 201(2), $13,000,000 shall be
    available for the National Oceanographic Partnership Program established
    pursuant to section 7901 of title 10, United States Code, as added by
    subsection (a)(1).
        (2) Of the amount authorized to be appropriated to the Department of
    the Navy by section 301(2), $7,500,000 shall be available for such
    program.
        (f) Funding for Program Office.--Of the amount appropriated for the
    National Oceanographic Partnership Program for fiscal year 1997, at
    least $500,000, or 3 percent of the amount appropriated, whichever is
    greater, shall be available for operations of the partnership program
    office established pursuant to section 7902(g) of title 10, United
    States Code, as added by subsection (a)(1), for such fiscal year.

    [[Page 110 STAT. 2474]]

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 305. Civil Air Patrol Corporation.
    Sec. 306. Availability of additional funds for antiterrorism activities.
    Sec. 307. Nonlethal weapons capabilities.
    Sec. 308. SR-71 contingency reconnaissance force.

                       Subtitle B--Depot-Level Activities

    Sec. 311. Extension of authority for aviation depots and naval shipyards
                        to engage in defense-related production and
                        services.
    Sec. 312. Test programs for modernization-through-spares.

                      Subtitle C--Environmental Provisions

    Sec. 321. Defense contractors covered by requirement for reports on
                        contractor
                        reimbursement costs for response actions.
    Sec. 322. Establishment of separate environmental restoration accounts
                        for each military department.
    Sec. 323. Payment of stipulated penalties assessed under CERCLA.
    Sec. 324. Shipboard solid waste control.
    Sec. 325. Authority to develop and implement land use plans for Defense
                        Environmental Restoration program.
    Sec. 326. Pilot program to test alternative technology for limiting air
                        emissions during shipyard blasting and coating
                        operations.
    Sec. 327. Agreements for services of other agencies in support of
                        environmental technology certification.
    Sec. 328. Repeal of redundant notification and consultation requirements
                        regarding remedial investigations and feasibility
                        studies at certain installations to be closed under
                        the base closure laws.
    Sec. 329. Authority for agreements with Indian tribes for services under
                        environmental restoration program.
    Sec. 330. Authority to withhold listing of Federal facilities on
                        National Priorities List.
    Sec. 331. Clarification of meaning of uncontaminated property for
                        purposes of transfer by the United States.
    Sec. 332. Conservation and cultural activities.
    Sec. 333. Navy program to monitor ecological effects of organotin.
    Sec. 334. Authority to transfer contaminated Federal property before
                        completion of required response actions.

       Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 341. Contracts with other agencies to provide or obtain goods and
                        services to promote efficient operation and
                        management of exchanges and morale, welfare, and
                        recreation activities.
    Sec. 342. Noncompetitive procurement of brand-name commercial items for
                        resale in commissary stores.
    Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

    Sec. 351. Extension of requirement for competitive procurement of
                        printing and
                        duplication services.
    Sec. 352. Reporting requirements under demonstration project for
                        purchase of fire, security, police, public works,
                        and utility services from local government agencies.

                            Subtitle F--Other Matters

    Sec. 361. Authority for use of appropriated funds for recruiting
                        functions.
    Sec. 362. Training of members of the uniformed services at non-
                        Government
                        facilities.
    Sec. 363. Requirement for preparation of plan for improved operation of
                        working-capital funds and effect of failure to
                        produce an approved plan.
    Sec. 364. Increase in capital asset threshold under Defense Business
                        Operations Fund.

    [[Page 110 STAT. 2475]]

    Sec. 365. Expansion of authority to donate unusable food.
    Sec. 366. Assistance to committees involved in inauguration of the
                        President.
    Sec. 367. Department of Defense support for sporting events.
    Sec. 368. Storage of motor vehicle in lieu of transportation.
    Sec. 369. Security protections at Department of Defense facilities in
                        National
                        Capital Region.
    Sec. 370. Administration of midshipmen's store and other Naval Academy
                        support activities as nonappropriated fund
                        instrumentality.
    Sec. 371. Reimbursement under agreement for instruction of civilian
                        students at Foreign Language Institute of the
                        Defense Language Institute.
    Sec. 372. Assistance to local educational agencies that benefit
                        dependents of
                        members of the Armed Forces and Department of
                        Defense civilian employees.
    Sec. 373. Renovation of building for Defense Finance and Accounting
                        Service
                        Center, Fort Benjamin Harrison, Indiana.
    Sec. 374. Food donation pilot program at service academies.
    Sec. 375. Authority of Air National Guard to provide certain services at
                        Lincoln Municipal Airport, Lincoln, Nebraska.
    Sec. 376. Technical amendment regarding Impact Aid program.

                   Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for the use of the Armed Forces and other activities and agencies of the
    Department of Defense for expenses, not otherwise provided for, for
    operation and maintenance, in amounts as follows:
                (1) For the Army, $18,264,406,000.
                (2) For the Navy, $20,387,737,000.
                (3) For the Marine Corps, $2,421,007,000.
                (4) For the Air Force, $17,635,335,000.
                (5) For Defense-wide activities, $9,912,962,000.
                (6) For the Army Reserve, $1,136,436,000.
                (7) For the Naval Reserve, $858,927,000.
                (8) For the Marine Corps Reserve, $113,367,000.
                (9) For the Air Force Reserve, $1,499,553,000.
                (10) For the Army National Guard, $2,277,477,000.
                (11) For the Air National Guard, $2,711,173,000.
                (12) For the Defense Inspector General, $136,501,000.
                (13) For the United States Court of Appeals for the Armed
            Forces, $6,797,000.
                (14) For Environmental Restoration, Army, $356,916,000.
                (15) For Environmental Restoration, Navy, $302,900,000.
                (16) For Environmental Restoration, Air Force, $414,700,000.
                (17) For Environmental Restoration, Defense-wide,
            $258,500,000.
                (18) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $54,544,000.
                (19) For Drug Interdiction and Counter-drug Activities,
            Defense-wide, $796,524,000.
                (20) For the Kaho'olawe Island Conveyance, Remediation, and
            Environmental Restoration Trust Fund, $10,000,000.
                (21) For Medical Programs, Defense, $9,833,288,000.
                (22) For Cooperative Threat Reduction programs,
            $364,900,000.
                (23) For Domestic Emergency Assistance programs,
            $97,000,000.
                (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

    [[Page 110 STAT. 2476]]

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 1997
    for the use of the Armed Forces and other activities and agencies of the
    Department of Defense for providing capital for working capital and
    revolving funds in amounts as follows:
                (1) For the Defense Business Operations Fund, $947,900,000.
                (2) For the National Defense Sealift Fund, $1,118,002,000.

    SEC. 303. ARMED FORCES RETIREMENT HOME.

        There is hereby authorized to be appropriated for fiscal year 1997
    from the Armed Forces Retirement Home Trust Fund the sum of $57,300,000
    for the operation of the Armed Forces Retirement Home, including the
    United States Soldiers' and Airmen's Home and the Naval Home.
    SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION
                            FUND.

        (a) Transfer Authority.--To the extent provided in appropriations
    Acts, not more than $150,000,000 is authorized to be transferred from
    the National Defense Stockpile Transaction Fund to operation and
    maintenance accounts for fiscal year 1997 in amounts as follows:
                (1) For the Army, $50,000,000.
                (2) For the Navy, $50,000,000.
                (3) For the Air Force, $50,000,000.

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

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

    SEC. 305. CIVIL AIR PATROL CORPORATION.

        (a) Funding.--Of the amount authorized to be appropriated pursuant
    to section 301 for operation and maintenance, $14,526,000 shall be
    available for the Civil Air Patrol Corporation.
        (b) Amount for Certain Operations.--Of the amount made available to
    the Civil Air Patrol Corporation pursuant to subsection (a), not less
    than 25 percent of such amount shall be reserved to cover the costs of
    search and rescue missions and disaster relief missions.
    SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM
                            ACTIVITIES.

        Of the amount authorized to be appropriated pursuant to section 301
    for operation and maintenance, $14,000,000 shall be available to the
    Secretary of Defense for activities designed to meet the antiterrorism
    responsibilities of the Department of Defense, including activities
    related to intelligence support, physical security measures, and
    education and training regarding antiterrorism. The amount made
    available by this section is in addition to amounts otherwise made
    available by this Act for antiterrorism activities.

    [[Page 110 STAT. 2477]]

    SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

        Of the amount authorized to be appropriated pursuant to section 301,
    $5,000,000 shall be available for the immediate procurement of nonlethal
    weapons capabilities to meet existing deficiencies in inventories of
    such capabilities, of which--
                (1) $2,000,000 shall be available for the Army; and
                (2) $3,000,000 shall be available for the Marine Corps.

    SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

        Of the funds authorized to be appropriated by section 301(4),
    $30,000,000 is authorized to be made available for the SR-71 contingency
    reconnaissance force.

                       Subtitle B--Depot-Level Activities

    SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL
                            SHIPYARDS TO ENGAGE IN DEFENSE-RELATED
                            PRODUCTION AND SERVICES.

        Section 1425(e) of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking
    out ``September 30, 1996'' and inserting in lieu thereof ``September 30,
    1997''.

    SEC. 312. <<NOTE: Reports.>>  TEST PROGRAMS FOR MODERNIZATION-THROUGH-
                SPARES.

        Not later than 60 days after the date of the enactment of this Act,
    the Secretary of the Army shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives a report on the steps that the Secretary has
    taken to ensure that each program included in the modernization-through-
    spares program of the Army is conducted in accordance with--
                (1) the competition requirements in section 2304 of title
            10, United States Code;
                (2) the core logistics requirements in section 2464 of such
            title;
                (3) the public-private competition requirements in section
            2469 of such title; and
                (4) requirements relating to contract bundling and spare
            parts breakout in subsections (a) and (l) of section 15 of the
            Small Business Act (15 U.S.C. 644) and regulations implementing
            such subsections in the Defense Federal Acquisition Regulation
            Supplement.

                      Subtitle C--Environmental Provisions

    SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR REPORTS
                            ON CONTRACTOR REIMBURSEMENT COSTS
                            FOR RESPONSE ACTIONS.

        Section 2706(d)(1)(A) of title 10, United States Code, is amended by
    striking out ``100'' and inserting in lieu thereof ``20''.
    SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION
                            ACCOUNTS FOR EACH MILITARY DEPARTMENT.

        (a) Establishment.--(1) Section 2703 of title 10, United States
    Code, is amended to read as follows:

    [[Page 110 STAT. 2478]]

    ``Sec. 2703. Environmental restoration accounts

        ``(a) Establishment of Accounts.--There are hereby established in
    the Department of Defense the following accounts:
                ``(1) An account to be known as the `Environmental
            Restoration Account, Defense'.
                ``(2) An account to be known as the `Environmental
            Restoration Account, Army'.
                ``(3) An account to be known as the `Environmental
            Restoration Account, Navy'.
                ``(4) An account to be known as the `Environmental
            Restoration Account, Air Force'.

        ``(b) Obligation of Authorized Amounts.--Funds authorized for
    deposit in an account under subsection (a) may be obligated or expended
    from the account only in order to carry out the environmental
    restoration functions of the Secretary of Defense and the Secretaries of
    the military departments under this chapter and under any other
    provision of law. Funds so authorized shall remain available until
    expended.
        ``(c) Budget <<NOTE: President.>> Reports.--In proposing the budget
    for any fiscal year pursuant to section 1105 of title 31, United States
    Code, the President shall set forth separately the amounts requested for
    environmental restoration programs of the Department of Defense and of
    each of the military departments under this chapter and under any other
    Act.

        ``(d) Credit of Amounts Recovered.--The following amounts shall be
    credited to the appropriate environmental restoration account:
                ``(1) Amounts recovered under CERCLA for response actions.
                ``(2) Any other amounts recovered from a contractor,
            insurer, surety, or other person to reimburse the Department of
            Defense or a military department for any expenditure for
            environmental response activities.

        ``(e) Payments of Fines and Penalties.--None of the funds
    appropriated to the Environmental Restoration Account, Defense, for
    fiscal years 1995 through 1999, or to any environmental restoration
    account of a military department for fiscal years 1997 through 1999, may
    be used for the payment of a fine or penalty (including any supplemental
    environmental project carried out as part of such penalty) imposed
    against the Department of Defense or a military department unless the
    act or omission for which the fine or penalty is imposed arises out of
    an activity funded by the environmental restoration account concerned
    and the payment of the fine or penalty has been specifically authorized
    by law.''.
        (2) The table of sections at the beginning of chapter 160 of title
    10, United States Code, is amended by striking out the item relating to
    section 2703 and inserting in lieu thereof the following new item:

    ``2703. Environmental restoration accounts.''.

        (b) References.--Any <<NOTE: 10 USC 2703 note.>> reference to the
    Defense Environmental Restoration Account in any Federal law, Executive
    Order, regulation, delegation of authority, or document shall be deemed
    to refer to the appropriate environmental restoration account
    established under section 2703(a)(1) of title 10, United States Code (as
    amended by subsection (a)(1)).

    [[Page 110 STAT. 2479]]

        (c) Conforming Amendment.--Section 2705(g)(1) of title 10, United
    States Code, is amended by striking out ``the Defense Environmental
    Restoration Account established'' and inserting in lieu thereof ``the
    environmental restoration account concerned''.
        (d) Treatment <<NOTE: 10 USC 2703 note.>> of Unobligated Balances.--
    Any unobligated balances that remain in the Defense Environmental
    Restoration Account under section 2703(a) of title 10, United States
    Code, as of the effective date specified in subsection (e) shall be
    transferred on such date to the Environmental Restoration Account,
    Defense, established under section 2703(a)(1) of title 10, United States
    Code (as amended by subsection (a)(1)).

        (e) Effective <<NOTE: 10 USC 2703 note.>> Date.--The amendments made
    by this section shall take effect on the later of--
                (1) October 1, 1996; or
                (2) the date of the enactment of this Act.
    SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

        (a) Authority.--The Secretary of Defense may pay the
    following:
                (1) Stipulated civil penalties, to the Hazardous Substance
            Superfund established under section 9507 of the Internal Revenue
            Code of 1986, in amounts, and using funds, as follows:
                        (A) Using funds authorized to be appropriated to the
                    Environmental Restoration Account, Army, established
                    under section 2703(a)(2) of title 10, United States Code
                    (as amended by section 322 of this Act)--
                              (i) not more than $34,000 assessed against
                          Fort Riley, Kansas, under CERCLA; and
                              (ii) not more than $37,500 assessed against
                          Lake City Army Ammunition Plant, Missouri, under
                          CERCLA.
                        (B) Using funds authorized to be appropriated to the
                    Environmental Restoration Account, Navy, established
                    under section 2703(a)(3) of that title, as so amended,
                    not more than $30,000 assessed against the Naval
                    Education and Training Center, Newport, Rhode Island,
                    under CERCLA.
                        (C) Using funds authorized to be appropriated to the
                    Environmental Restoration Account, Air Force,
                    established under section 2703(a)(4) of that title, as
                    so amended--
                              (i) not more than $55,000 assessed against the
                          Massachusetts Military Reservation, Massachusetts,
                          under CERCLA; and
                              (ii) not more than $10,000 assessed against
                          F.E. Warren Air Force Base, Wyoming, under CERCLA.
                (2) Using funds authorized to be appropriated to the
            Environmental Restoration Account, Air Force, established under
            section 2703(a)(4) of that title, as so amended, not more than
            $500,000 to carry out one environmental restoration project, as
            part of a negotiated agreement in lieu of stipulated penalties
            assessed under CERCLA against the Massachusetts Military
            Reservation, Massachusetts.

        (b) CERCLA Defined.--In this section, the term ``CERCLA'' means the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980 (42 U.S.C. 9601 et seq.).

    [[Page 110 STAT. 2480]]

    SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

        (a) In General.--Section 3(c) of the Act to Prevent Pollution from
    Ships (33 U.S.C. 1902(c)) is amended--
                (1) in paragraph (1), by striking out ``Not later than'' and
            inserting in lieu thereof ``Except as provided in paragraphs (2)
            and (3), not later than''; and
                (2) by striking out paragraphs (2), (3), and (4) and
            inserting in lieu thereof the following:

        ``(2)(A) Subject to subparagraph (B), any ship described in
    subparagraph (C) may discharge, without regard to the special area
    requirements of Regulation 5 of Annex V to the Convention, the following
    non-plastic, non-floating garbage:
                ``(i) A slurry of seawater, paper, cardboard, or food waste
            that is capable of passing through a screen with openings no
            larger than 12 millimeters in diameter.
                ``(ii) Metal and glass that have been shredded and bagged so
            as to ensure negative buoyancy.

        ``(B)(i) Garbage described in subparagraph (A)(i) may not be
    discharged within 3 nautical miles of land.
        ``(ii) Garbage described in subparagraph (A)(ii) may not be
    discharged within 12 nautical miles of land.
        ``(C) <<NOTE: Applicability.>>  This paragraph applies to any ship
    that is owned or operated by the Department of the Navy that, as
    determined by the Secretary of the Navy--
                ``(i) has unique military design, construction, manning, or
            operating requirements; and
                ``(ii) cannot fully comply with the special area
            requirements of Regulation 5 of Annex V to the Convention
            because compliance is not technologically feasible or would
            impair the operations or operational capability of the ship.

        ``(3)(A) <<NOTE: Regulations. Federal Register, publication.>>  Not
    later than December 31, 2000, the Secretary of the Navy shall prescribe
    and publish in the Federal Register standards to ensure that each ship
    described in subparagraph (B) is, to the maximum extent practicable
    without impairing the operations or operational capabilities of the
    ship, operated in a manner that is consistent with the special area
    requirements of Regulation 5 of Annex V to the Convention.

        ``(B) <<NOTE: Applicability. Effective date. Termination date.>>
    Subparagraph (A) applies to surface ships that are owned or operated by
    the Department of the Navy that the Secretary plans to decommission
    during the period beginning on January 1, 2001, and ending on December
    31, 2005.

        ``(C) <<NOTE: Federal Register, publication.>>  At the same time
    that the Secretary publishes standards under subparagraph (A), the
    Secretary shall publish in the Federal Register a list of the ships
    covered by subparagraph (B).''.

        (b) Sense of Congress.--(1) It is the sense of Congress that it
    should be an objective of the Navy to achieve full compliance with Annex
    V to the Convention as part of the Navy's development of ships that are
    environmentally sound.
        (2) In this subsection, the terms ``Convention'' and ``ship'' have
    the meanings given such terms in section 2(a) of the Act to Prevent
    Pollution from Ships (33 U.S.C. 1901(a)).
        (c) <<NOTE: 10 USC 2706 note.>>  Report on Compliance With Annex V
    to the Convention.--The Secretary of Defense shall include in each
    report on environmental compliance activities submitted to Congress
    under section 2706(b) of title 10, United States Code, the following
    information:

    [[Page 110 STAT. 2481]]

                (1) A list of the ship types, if any, for which the
            Secretary of the Navy has made the determination referred to in
            paragraph (2)(C) of section 3(c) of the Act to Prevent Pollution
            from Ships, as amended by subsection (a)(2) of this section.
                (2) A list of ship types which the Secretary of the Navy has
            determined can comply with Regulation 5 of Annex V to the
            Convention.
                (3) A summary of the progress made by the Navy in
            implementing the requirements of paragraphs (2) and (3) of such
            section 3(c), as so amended.
                (4) A description of any emerging technologies offering the
            potential to achieve full compliance with Regulation 5 of Annex
            V to the Convention.
                (5) The amount and nature of the discharges in special
            areas, not otherwise authorized under the Act to Prevent
            Pollution from Ships (33 U.S.C. 1901 et seq.), during the
            preceding year from ships referred to in section 3(b)(1)(A) of
            such Act owned or operated by the Department of the Navy.

        (d) Publication Regarding Special Area Discharges.--Subparagraph (A)
    of section 3(e)(4) of the Act to Prevent Pollution from Ships (33 U.S.C.
    1902(e)(4)) is amended to read as follows:
                        ``(A) Each year, the amount and nature of the
                    discharges in special areas, not otherwise authorized
                    under this Act, during the preceding year from ships
                    referred to in subsection (b)(1)(A) of this section
                    owned or operated by the Department of the Navy.''.
    SEC. 325. AUTHORITY <<NOTE: 10 USC 2701 note.>> TO DEVELOP AND
                            IMPLEMENT LAND USE PLANS FOR DEFENSE
                            ENVIRONMENTAL RESTORATION PROGRAM.

        (a) Authority.--The Secretary of Defense may, to the extent possible
    and practical, develop and implement, as part of the Defense
    Environmental Restoration Program provided for in chapter 160 of title
    10, United States Code, a land use
    plan for any defense site selected by the Secretary under subsection
    (b).

        (b) Selection of Sites.--The Secretary may select up to 10 defense
    sites, from among sites where the Secretary is planning or implementing
    environmental restoration activities, for which land use plans may be
    developed under this section.
        (c) Requirement To Consult With Review Committee or Advisory
    Board.--In developing a land use plan under this section, the Secretary
    shall consult with a technical review committee established pursuant to
    section 2705(c) of title 10, United States Code, a restoration advisory
    board established pursuant to section 2705(d) of such title, a local
    land use redevelopment authority, or another appropriate State agency.
        (d) 50-Year Planning Period.--A land use plan developed under this
    section shall cover a period of at least 50 years.
        (e) Implementation.--For each defense site for which the Secretary
    develops a land use plan under this section, the Secretary shall take
    into account the land use plan in selecting and implementing, in
    accordance with applicable law, environmental restoration activities at
    the site.
        (f) Deadlines.--For each defense site for which the Secretary
    intends to develop a land use plan under this section, the Secretary
    shall develop a draft land use plan by October 1, 1997, and a final land
    use plan by March 15, 1998.

    [[Page 110 STAT. 2482]]

        (g) Definition of Defense Site.--For purposes of this section, the
    term ``defense site'' means (A) any building, structure, installation,
    equipment, pipe or pipeline (including any pipe into a sewer or publicly
    owned treatment works), well, pit, pond, lagoon, impoundment, ditch,
    landfill, storage container, motor vehicle, rolling stock, or aircraft
    under the jurisdiction of the Department of Defense, or (B) any site or
    area under the jurisdiction of the Department of Defense where a
    hazardous substance has been deposited, stored, disposed of, or placed,
    or otherwise come to be located; but does not include any consumer
    product in consumer use or any vessel.
        (h) Report.--In the annual report required under section 2706(a) of
    title 10, United States Code, the Secretary shall include information on
    the land use plans developed under this section and the effect such
    plans have had on environmental restoration activities at the defense
    sites where they have been implemented. The annual report submitted in
    1999 shall include recommendations on whether such land use plans should
    be developed and implemented throughout the Department of Defense.
        (i)  Savings Provisions.--(1) Nothing in this section, or in a land
    use plan developed under this section with respect to a defense site,
    shall be construed as requiring any modification to a land use plan that
    was developed before the date of the enactment of this Act.

        (2) Nothing in this section may be construed to affect statutory
    requirements for an environmental restoration or waste management
    activity or project or to modify or otherwise affect applicable
    statutory or regulatory environmental restoration and waste management
    requirements, including substantive standards intended to protect public
    health and the environment, nor shall anything in this section be
    construed to preempt or impair any local land use planning or zoning
    authority or State authority.
    SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR
                            LIMITING AIR EMISSIONS DURING SHIPYARD
                            BLASTING AND COATING OPERATIONS.

        (a) Determination by Secretary of the Navy.--(1) The Secretary of
    the Navy shall make a determination whether the alternative technology
    described in paragraph (2) has the clear potential for significant
    benefit to the Navy. <<NOTE: Notification.>> The Secretary shall submit
    to Congress a notification in writing of the determination not later
    than 60 days after the date of the enactment of this Act.

        (2) The technology referred to in paragraph (1) is an alternative
    technology designed to capture and destroy or remove particulate
    emissions and volatile air pollutants that occur during abrasive
    blasting and coating operations at naval shipyards.
        (b) Pilot Program.--If the determination made under subsection
    (a)(1) is in the affirmative, the Secretary shall establish a pilot
    program to test the alternative technology. In conducting the test, the
    Secretary shall seek to demonstrate whether the technology is valid,
    cost effective, and in compliance with environmental laws and
    regulations.
        (c) Report.--Upon completion of the test conducted under the pilot
    program, the Secretary shall submit to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives a report setting forth in detail the results of the
    test. The report shall include

    [[Page 110 STAT. 2483]]

    recommendations on whether the alternative technology merits
    implementation at naval shipyards and such other recommendations as the
    Secretary considers appropriate.
    SEC. 327. <<NOTE: 10 USC 2702 note.>>  AGREEMENTS FOR SERVICES OF
                            OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL
                            TECHNOLOGY CERTIFICATION.

        (a) Authority.--Subject to subsection (b), the Secretary of Defense
    may enter into a cooperative agreement with an agency of a State or
    local government to obtain assistance in certifying environmental
    technologies.
        (b) Limitations.--The Secretary of Defense may enter into a
    cooperative agreement with respect to an environmental technology under
    subsection (a) only if the Secretary determines--
                (1) that the technology has clear potential to be of
            significant value to the Department of Defense in carrying out
            its environmental restoration activities; and
                (2) that there is no reasonably available market in the
            private sector for the technology without a certification by the
            Department of Defense, the Environmental Protection Agency, or a
            State environmental agency.

        (c) Types of Assistance.-- The types of assistance that may be
    obtained under subsection (a) include the following:
                (1) Data collection and analysis.
                (2) Technical assistance in conducting a demonstration of an
            environmental technology, including the implementation of
            quality assurance and quality control programs.

        (d) Report.--In the annual report required under section 2706(a) of
    title 10, United States Code, the Secretary of Defense shall include the
    following information with respect to cooperative agreements entered
    into under this section:
                (1) The number of such agreements.
                (2) The number of States in which such agreements have been
            entered into.
                (3) A description of the nature of the technology involved
            in each such agreement.
                (4) The amount of funds obligated or expended by the
            Department of Defense for each such agreement during the year
            covered by the report.

        (e) Termination of Authority.--The authority provided under
    subsection (a) shall terminate five years after the date of the
    enactment of this Act.
    SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND
                            CONSULTATION REQUIREMENTS REGARDING
                            REMEDIAL INVESTIGATIONS AND FEASIBILITY
                            STUDIES AT CERTAIN INSTALLATIONS TO BE
                            CLOSED UNDER THE BASE CLOSURE LAWS.

        Section 334 of the National Defense Authorization Act for Fiscal
    Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 U.S.C. 2687
    note) is repealed.
    SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES
                            UNDER ENVIRONMENTAL RESTORATION PROGRAM.

        Section 2701(d) of title 10, United States Code, is amended--
                (1) in the first sentence of paragraph (1), by striking out
            ``, or with any State or local government agency,'' and
            inserting

    [[Page 110 STAT. 2484]]

            in lieu thereof ``, with any State or local government agency,
            or with any Indian tribe,''; and
                (2) by adding at the end the following:
                ``(3) Definition.--In this subsection, the term `Indian
            tribe' has the meaning given such term in section 101(36) of the
            Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980 (42 U.S.C. 9601(36)).''.
    SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON
                            NATIONAL PRIORITIES LIST.

        Section 120(d) of the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is amended--
                (1) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B), respectively;
                (2) by striking out ``Not later than 18 months after the
            enactment of the Superfund Amendments and Reauthorization Act of
            1986, the Administrator'' and inserting in lieu thereof the
            following:
                ``(1) In general.--The Administrator'';
                (3) by moving the remainder of the text of paragraph (1), as
            designated by paragraph (2) of this section (including
            subparagraphs (A) and (B), as redesignated by paragraph (1) of
            this section) 2 ems to the right; and
                (4) by striking out ``Such criteria'' and all that follows
            through the end of the subsection and inserting in lieu thereof
            the following:
                ``(2) Application of criteria.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    criteria referred to in paragraph (1) shall be applied
                    in the same manner as the criteria are applied to
                    facilities that are owned or operated by persons other
                    than the United States.
                        ``(B) Response under other law.--It shall be an
                    appropriate factor to be taken into consideration for
                    the purposes of section 105(a)(8)(A) that the head of
                    the department, agency, or instrumentality that owns or
                    operates a facility has arranged with the Administrator
                    or appropriate State authorities to respond
                    appropriately, under authority of a law other than this
                    Act, to a release or threatened release of a hazardous
                    substance.
                ``(3) Completion.--Evaluation and listing under this
            subsection shall be completed in accordance with a reasonable
            schedule established by the Administrator.''.
    SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR
                            PURPOSES OF TRANSFER BY THE UNITED STATES.

        Section 120(h)(4)(A) of the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(4)(A)) is
    amended in the first sentence by striking out ``stored for one year or
    more, known to have been released,'' and inserting in lieu thereof
    ``known to have been released''.

    SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

        (a) In General.--(1) Chapter 159 of title 10, United States Code, is
    amended by adding at the end the following new section:

    [[Page 110 STAT. 2485]]

    ``Sec. 2694. Conservation and cultural activities

        ``(a) Establishment.--The Secretary of Defense may establish and
    carry out a program to conduct and manage in a coordinated manner the
    conservation and cultural activities described in subsection (b).
        ``(b) Activities.--(1) A conservation or cultural activity eligible
    for the program that the Secretary establishes under subsection (a) is
    any activity--
                ``(A) that has regional or Department of Defense-wide
            significance and that involves more than one military
            department;
                ``(B) that is necessary to meet legal requirements or to
            support military operations;
                ``(C) that can be more effectively managed at the Department
            of Defense level; and
                ``(D) for which no executive ageny has been designated
            responsible by the Secretary.

        ``(2) Such activities include the following:
                ``(A) The development of ecosystem-wide land management
            plans.
                ``(B) The conduct of wildlife studies to ensure the safety
            of military operations.
                ``(C) The identification and return of Native American human
            remains and cultural items in the possession or control of the
            Department of Defense, or discovered on land under the
            jurisdiction of the Department, to the appropriate Native
            American tribes.
                ``(D) The control of invasive species that may hinder
            military activities or degrade military training ranges.
                ``(E) The establishment of a regional curation system for
            artifacts found on military installations.

        ``(c) Cooperative Agreements.--The Secretary may negotiate and enter
    into cooperative agreements with public and private agencies,
    organizations, institutions, individuals, or other entities to carry out
    the program established under subsection (a).
        ``(d) Effect on Other Laws.--Nothing in this section shall be
    construed or interpreted as preempting any otherwise applicable Federal,
    State, or local law or regulation relating to the management of natural
    and cultural resources on military installations.''.

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

    ``2694. Conservation and cultural activities.''.

        (b) <<NOTE: 10 USC 2694 note.>>  Effective Date.--Section 2694 of
    title 10, United States Code, as added by subsection (a), shall take
    effect on October 1, 1996.
    SEC. 333. <<NOTE: Water. 33 USC 2406 note.>>  NAVY PROGRAM TO
                            MONITOR ECOLOGICAL EFFECTS OF ORGANOTIN.

        (a) Monitoring Requirement.--The Secretary of the Navy shall, in
    consultation with the Administrator of the Environmental Protection
    Agency, develop and implement a program to monitor the concentrations of
    organotin in the water column, sediments, and aquatic organisms of
    representative estuaries and near-coastal waters in the United States,
    as described in section 7(a) of the Organotin Antifouling Paint Control
    Act of 1988 (33 U.S.C. 2406(a)). The program shall be designed to
    produce high-quality data to

    [[Page 110 STAT. 2486]]

    enable the Environmental Protection Agency to develop water quality
    criteria concerning organotin compounds.
        (b) Funding.--The Administrator of the Environmental Protection
    Agency shall provide, in advance, such sums as are necessary to the
    Secretary of the Navy for the costs of developing and implementing the
    program under subsection (a).
        (c) Written Agreement.--The Secretary of the Navy and the
    Administrator of the Environmental Protection Agency shall enter into a
    written agreement setting forth the actions that the Secretary plans to
    take under subsection (a) and the funding that the Administrator agrees
    to provide under subsection (b). <<NOTE: Notification.>>  If the
    Secretary determines that the Administrator will not enter into such an
    agreement, the Secretary shall notify the Committee on National Security
    of the House of Representatives and the Committee on Armed Services of
    the Senate not later than 30 days after such determination.

        (d) Nonimpairment of Mission.--Compliance with subsection (a) shall
    be conducted in such a manner so as not to impair the ability of the
    Department of the Navy to meet its operational requirements.
        (e) Report.--Not later than June 1, 1997, the Secretary of the Navy
    shall submit to Congress a report containing the following:
                (1) A description of the monitoring program developed
            pursuant to subsection (a).
                (2) An analysis of the results of the monitoring program as
            of the date of the submission of the report.
                (3) Information about the progress of Navy programs,
            referred to in section 7(c) of the Organotin Antifouling Paint
            Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the
            laboratory toxicity and environmental risks associated with the
            use of antifouling paints containing organotin.
                (4) An assessment, developed in consultation with the
            Administrator of the Environmental Protection Agency, of the
            effectiveness of existing laws and rules concerning organotin
            compounds in ensuring protection of human health and the
            environment.

        (f) Sense of Congress.--(1) It is the sense of Congress that the
    Administrator of the Environmental Protection Agency, in consultation
    with the Secretary of the Navy, should develop, for purposes of the
    national pollutant discharge elimination system, a model permit for the
    discharge of organotin compounds at shipbuilding and ship repair
    facilities.
        (2) For purposes of this subsection, the term ``organotin'' has the
    meaning provided in section 3 of the Organotin Antifouling Paint Control
    Act of 1988 (33 U.S.C. 2402).
        (g) Termination.--The program required by subsection (a) shall
    terminate five years after the date of the enactment of this Act.
    SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY
                            BEFORE COMPLETION OF REQUIRED RESPONSE
                            ACTIONS.

        (a) In General.--Section 120(h)(3) of the Comprehensive
    Environmental Response, Compensation, and Liability Act of 1980 (42
    U.S.C. 9620(h)(3)) is amended--
                (1) by redesignating subparagraph (A) as clause (i) and
            clauses (i), (ii), and (iii) of that subparagraph as subclauses
            (I), (II), and (III), respectively;

    [[Page 110 STAT. 2487]]

                (2) by striking out ``After the last day'' and inserting in
            lieu thereof the following:
                        ``(A) In general.--After the last day'';
                (3) by redesignating subparagraph (B) as clause (ii) and
            clauses (i) and (ii) of that subparagraph as subclauses (I) and
            (II), respectively;
                (4) by redesignating subparagraph (C) as clause (iii);
                (5) by moving the remainder of the text of subparagraph (A),
            as designated by paragraph (2) of this subsection (including the
            clauses and subclauses redesignated
    by paragraphs (1), (3), and (4) of this subsection) 2 ems to the right;
                (6) by striking ``For purposes of subparagraph (B)(i)'' and
            inserting the following:
                        ``(B) Covenant requirements.--For purposes of
                    subparagraphs (A)(ii)(I) and (C)(iii)'';
                (7) in subparagraph (B), as designated by paragraph (5), by
            striking ``subparagraph (B)'' each place it appears and
            inserting ``subparagraph (A)(ii)''; and
                (8) by adding at the end the following:
                        ``(C) Deferral.--
                              ``(i) In general.--The Administrator, with the
                          concurrence of the Governor of the State in which
                          the facility is located (in the case of real
                          property at a Federal facility that is listed on
                          the National Priorities List), or the Governor of
                          the State in which the facility is located (in the
                          case of real property at a Federal facility not
                          listed on the National Priorities List) may defer
                          the requirement of subparagraph (A)(ii)(I) with
                          respect to the property if the Administrator or
                          the Governor, as the case may be, determines that
                          the property is suitable for transfer, based on a
                          finding that--
                                        ``(I) the property is suitable for
                                    transfer for the use intended by the
                                    transferee, and the intended use is
                                    consistent with protection of human
                                    health and the environment;
                                        ``(II) the deed or other agreement
                                    proposed to govern the transfer between
                                    the United States and the transferee of
                                    the property contains the assurances set
                                    forth in clause (ii);
                                        ``(III) the Federal agency
                                    requesting deferral has provided notice,
                                    by publication in a newspaper of general
                                    circulation in the vicinity of the
                                    property, of the proposed transfer and
                                    of the opportunity for the public to
                                    submit, within a period of not less than
                                    30 days after the date of the notice,
                                    written comments on the suitability of
                                    the property for transfer; and
                                        ``(IV) the deferral and the transfer
                                    of the property will not substantially
                                    delay any necessary response action at
                                    the property.
                              ``(ii) Response action assurances.--With
                          regard to a release or threatened release of a
                          hazardous substance for which a Federal agency is
                          potentially responsible under this section, the
                          deed or other agreement proposed to govern the
                          transfer shall contain assurances that--

    [[Page 110 STAT. 2488]]

                                        ``(I) provide for any necessary
                                    restrictions on the use of the property
                                    to ensure the protection of human health
                                    and the environment;
                                        ``(II) provide that there will be
                                    restrictions on use necessary to ensure
                                    that required remedial investigations,
                                    response action, and oversight
                                    activities will not be disrupted;
                                        ``(III) provide that all necessary
                                    response action will be taken and
                                    identify the schedules for investigation
                                    and completion of all necessary response
                                    action as approved by the appropriate
                                    regulatory agency; and
                                        ``(IV) provide that the Federal
                                    agency responsible for the property
                                    subject to transfer will submit a budget
                                    request to the Director of the Office of
                                    Management and Budget that adequately
                                    addresses schedules for investigation
                                    and completion of all necessary response
                                    action, subject to congressional
                                    authorizations and appropriations.
                              ``(iii) Warranty.--When all response action
                          necessary to protect human health and the
                          environment with respect to any substance
                          remaining on the property on the date of transfer
                          has been taken, the United States shall execute
                          and deliver to the transferee an appropriate
                          document containing a warranty that all such
                          response action has been taken, and the making of
                          the warranty shall be considered to satisfy the
                          requirement of subparagraph (A)(ii)(I).
                              ``(iv) Federal responsibility.--A deferral
                          under this subparagraph shall not increase,
                          diminish, or affect in any manner any rights or
                          obligations of a Federal agency (including any
                          rights or obligations under sections 106, 107, and
                          120 existing prior to transfer) with respect to a
                          property transferred under this subparagraph.''.

        (b) Continued Application of State Law.--The first sentence of
    section 120(a)(4) of the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is
    amended by inserting ``or facilities that are the subject of a deferral
    under subsection (h)(3)(C)'' after ``United States''.

       Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

    SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR OBTAIN GOODS
                            AND SERVICES TO PROMOTE EFFICIENT
                            OPERATION AND MANAGEMENT OF EXCHANGES AND
                            MORALE, WELFARE, AND RECREATION
                            ACTIVITIES.

        (a) Contracts To Promote Efficient Operation and Management.--(1)
    Chapter 147 of title 10, United States Code, is amended by inserting
    after section 2482 the following new section:

    [[Page 110 STAT. 2489]]

    ``Sec. 2482a. Nonappropriated fund instrumentalities: contracts
                          with other agencies and instrumentalities to
                          provide and obtain goods and services

        ``An agency or instrumentality of the Department of Defense that
    supports the operation of the exchange system, or the operation of a
    morale, welfare, and recreation system, of the Department of Defense may
    enter into a contract or other
    agreement with another element of the Department of Defense or with
    another Federal department, agency, or instrumentality to provide or
    obtain goods and services beneficial to the efficient management and
    operation of the exchange system or that morale, welfare, and recreation
    system.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2482 the
    following new item:

    ``2482a. Nonappropriated fund instrumentalities: contracts with other
                agencies and instrumentalities to provide and obtain goods
                and services.''.

        (b) Conforming Amendment Regarding Commissary System.--Section
    2482(b)(1) of such title is amended by striking out ``another
    department'' and all that follows through ``provide services'' and
    inserting in lieu thereof ``another element of the Department of Defense
    or with another Federal department, agency, or instrumentality to
    provide or obtain services''.
    SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL
                            ITEMS FOR RESALE IN COMMISSARY STORES.

        (a) Clarification of Exception to Competitive Procurement.--Section
    2486 of title 10, United States Code, is amended by adding at the end
    the following new subsection:
        ``(e) The Secretary of Defense may not use the exception provided in
    section 2304(c)(5) of this title regarding the procurement of a brand-
    name commercial item for resale in commissary stores unless the
    commercial item is regularly sold outside of commissary stores under the
    same brand name as the name by which the commercial item will be sold in
    commissary stores.''.
        (b) <<NOTE: 10 USC 2486 note.>>  Effect on Existing Contracts or
    Other Agreements.--Section 2486(e) of title 10, United States Code, as
    added by subsection (a), shall not affect the terms, conditions, or
    duration of any contract or other agreement entered into by the
    Secretary of Defense before the date of the enactment of this Act for
    the procurement of commercial items for resale in commissary stores.
    SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT
                            MATERIAL.

        (a) In General.--(1) Chapter 147 of title 10, United States Code, is
    amended by inserting after section 2489 the following new section:
    ``Sec. 2489a. Sale or rental of sexually explicit material pro-
                        hibited

        ``(a) Prohibition of Sale or Rental.--The Secretary of Defense may
    not permit the sale or rental of sexually explicit material on property
    under the jurisdiction of the Department of Defense.

    [[Page 110 STAT. 2490]]

        ``(b) Prohibition of Officially Provided Sexually Explicit
    Material.--A member of the armed forces or a civilian officer or
    employee of the Department of Defense acting in an official capacity may
    not provide for sale, remuneration, or rental sexually explicit material
    to another person.
        ``(c) Regulations.--The Secretary of Defense shall prescribe
    regulations to implement this section.
        ``(d) Definitions.--In this section:
                ``(1) The term `sexually explicit material' means an audio
            recording, a film or video recording, or a periodical with
            visual depictions, produced in any medium, the dominant theme of
            which depicts or describes nudity, including sexual or excretory
            activities or organs, in a lascivious way.
                ``(2) The term `property under the jurisdiction of the
            Department of Defense' includes commissaries, all facilities
            operated by the Army and Air Force Exchange Service, the Navy
            Exchange Service Command, the Navy Resale and Services Support
            Office, Marine Corps exchanges, and ships' stores.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2489 the
    following new item:

    ``2489a. Sale or rental of sexually explicit material prohibited.''.

        (b) <<NOTE: 10 USC 2489a note.>>  Effective Date.--Subsection (a) of
    section 2489a of title 10, United States Code, as added by subsection
    (a) of this section, shall take effect 90 days after the date of the
    enactment of this Act.

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

    SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE PROCUREMENT OF
                            PRINTING AND DUPLICATION SERVICES.

        (a) Extension.--Section 351(a) of the National Defense Authorization
    Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended
    by striking out ``fiscal year 1996'' and inserting in lieu thereof
    ``fiscal years 1996 and 1997''.
        (b) Reporting Requirements.--Such section is further
    amended by adding at the end the following new subsection:
        ``(c) Reporting Requirements.--(1) Not later than 90 days after the
    end of each fiscal year in which the requirement of subsection (a)
    applies, the Secretary of Defense shall submit to Congress a report--
                ``(A) describing the extent of the compliance of the
            Secretary with the requirement during that fiscal year;
                ``(B) specifying the total volume of printing and
            duplication services procured by the Department of Defense
            during that fiscal year--
                        ``(i) from sources within the Department of Defense;
                        ``(ii) from private-sector sources; and
                        ``(iii) from other sources in the Federal Govern-
                    ment; and
                ``(C) specifying the total volume of printed and duplicated
            material during that fiscal year covered by the exception in
            subsection (b).

    [[Page 110 STAT. 2491]]

        ``(2) The report required for fiscal year 1996 shall also include
    the plans of the Secretary for further implementation of the requirement
    of subsection (a) during fiscal year 1997.''.
    SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR
                            PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC
                            WORKS, AND UTILITY SERVICES FROM LOCAL
                            GOVERNMENT AGENCIES.

        Section 816(b) of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking
    out ``, 1996'' and inserting in lieu thereof ``of each of the years 1997
    and 1998''.

                            Subtitle F--Other Matters

    SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR RECRUITING
                            FUNCTIONS.

        (a) Authority.--Chapter 31 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 520c. Recruiting functions: use of funds

        ``(a) <<NOTE: Regulations.>>  Provision of Meals and Refreshments.--
    Under regulations prescribed by the Secretary concerned, funds
    appropriated to the Department of Defense for recruitment of military
    personnel may be expended for small meals and refreshments during
    recruiting functions for the following persons:
                ``(1) Persons who have enlisted under the Delayed Entry
            Program authorized by section 513 of this title.
                ``(2) Persons who are objects of armed forces recruiting
            efforts.
                ``(3) Persons whose assistance in recruiting efforts of the
            military departments is determined to be influential by the
            Secretary concerned.
                ``(4) Members of the armed forces and Federal employees when
            attending recruiting events in accordance with a requirement to
            do so.
                ``(5) Other persons whose presence at recruiting efforts
            will contribute to recruiting efforts.

        ``(b) Annual Report.--Not later than February 1 of each of the years
    1998 through 2002, the Secretary of Defense shall submit to Congress a
    report on the extent to which the authority under subsection (a) was
    exercised during the fiscal year ending in the preceding year.
        ``(c) Termination of Authority.--The authority in subsection (a) may
    not be exercised after September 30, 2001.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``520c. Recruiting functions: use of funds.''.

    SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT NON-
                            GOVERNMENT FACILITIES.

        (a) Authority to Enter Into Agreements for Training at Non-
    Government Facilities.--(1) Chapter 101 of title 10, United States Code,
    is amended by adding at the end the following new section:

    [[Page 110 STAT. 2492]]

    ``Sec. 2013. Training at non-Government facilities

        ``(a) Authority To Enter Into Agreements.--(1) The Secretary
    concerned, without regard to section 3709 of the Revised Statutes (41
    U.S.C. 5), may make agreements or other arrangements for the training of
    members of the uniformed services under the jurisdiction of that
    Secretary by, in, or through non-Government facilities.
        ``(2) In this section, the term `non-Government facility' means any
    of the following:
                ``(A) The government of a State or of a territory or
            possession of the United States, including the Commonwealth of
            Puerto Rico, an interstate governmental organization, and a
            unit, subdivision, or instrumentality of any of the foregoing.
                ``(B) A foreign government or international organization, or
            instrumentality of either, which is designated by the President
            as eligible to provide training under this section.
                ``(C) A medical, scientific, technical, educational,
            research, or professional institution, foundation, or
            organization.
                ``(D) A business, commercial, or industrial firm,
            corporation, partnership, proprietorship, or other organization.
                ``(E) Individuals other than civilian or military personnel
            of the Government.
                ``(F) The services and property of any of the foregoing
            providing the training.

        ``(b) Expenses.--The Secretary concerned, from appropriations or
    other funds available to the Secretary, may--
                ``(1) pay all or a part of the pay of a member of a
            uniformed service who is selected and assigned for training
            under this section, for the period of training; and
                ``(2) pay, or reimburse the member of a uniformed service
            for, all or a part of the necessary expenses of the training
            (without regard to subsections (a) and (b) of section 3324 of
            title 31), including among those expenses the necessary costs of
            the following:
                        ``(A) Travel and per diem instead of subsistence
                    under sections 404 and 405 of title 37 and the Joint
                    Travel Regulations for the Uniformed Services.
                        ``(B) Transportation of immediate family, household
                    goods and personal effects, packing, crating,
                    temporarily storing, draying, and unpacking under
                    sections 406 and 409 of title 37 and the Joint Travel
                    Regulations for the Uniformed Services when the
                    estimated costs of transportation and related services
                    are less than the estimated aggregate per diem payments
                    for the period of training.
                        ``(C) Tuition and matriculation fees.
                        ``(D) Library and laboratory services.
                        ``(E) Purchase or rental of books, materials, and
                    supplies.
                        ``(F) Other services or facilities directly related
                    to the training of the member.

        ``(c) Certain Expenses Excluded.--The expenses of training do not
    include membership fees except to the extent that the fee is a necessary
    cost directly related to the training itself or that payment of the fee
    is a condition precedent to undergoing the training.''.

    [[Page 110 STAT. 2493]]

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

    ``2013. Training at non-Government facilities.''.

      (b) <<NOTE: 10 USC 2013 note.>>  Effective Date.--Section 2013 of
    title 10, United States Code, as added by subsection (a), shall take
    effect on October 1, 1996.
    SEC. 363. <<NOTE: 10 USC 2216a note.>>  REQUIREMENT FOR
                            PREPARATION OF PLAN FOR IMPROVED OPERATION
                            OF WORKING-CAPITAL FUNDS AND EFFECT OF
                            FAILURE TO PRODUCE AN APPROVED PLAN.

        (a) Plan for Improved Operation of Working-Capital Funds.--Not later
    than September 30, 1997, the Secretary of Defense shall submit to
    Congress a plan to improve the management and performance of the
    industrial, commercial, and support type activities of the military
    departments or the Defense Agencies that are currently managed through
    the Defense Business Operations Fund.
        (b) Elements of Plan.--The plan required by subsection (a) shall
    address the following issues:
                (1) The ability of each military department or Defense
            Agency to set working capital requirements and set charges at
            its own industrial and supply activities.
                (2) The desirability of separate business accounts for the
            management of both industrial and supply activities for each
            military department or Defense Agency.
                (3) Liability for operation losses at industrial and supply
            activities.
                (4) Reimbursement to the Department of Defense by each
            military department or Defense Agency of its fair share of the
            costs of legitimate common business support services (such as
            accounting and financial services and central logistics
            services) provided by the Department of Defense.
                (5) The role of the Department of Defense in setting charges
            or imposing surcharges for activities managed by the business
            accounts of a military department or Defense Agency (except for
            the common business support cost described in paragraph (4)),
            and what such charges should properly reflect.
                (6) The appropriate use of operating profits arising from
            the operations of the industrial and supply activities of a
            military department or Defense Agency.
                (7) The ability of a military department or Defense Agency
            to purchase industrial and supply services from, and provide
            such services to, other military departments or Defense
            Agencies.
                (8) Standardization of financial management and accounting
            practices employed by the business accounts of a military
            department or Defense Agency.
                (9) Reporting requirements related to actual and projected
            performance of business management account activities of a
            military department or Defense Agency.

        (c) <<NOTE: 10 USC 2216a.>>  Effect of Failure to Submit or Approve
    of Plan.--(1) Unless, before October 1, 1999, the Secretary of Defense
    submits the plan required by subsection (a) and Congress enacts a
    provision of law described in paragraph (2) that approves of the plan as
    submitted or in an amended form, then section 2216a of title 10, United
    States Code, regarding the Defense Business Operations

    [[Page 110 STAT. 2494]]

    Fund (as redesignated by section 1074(a)(10) of this Act), shall be
    repealed effective as of that date.

        (2) The provision of law referred to in paragraph (1) is a provision
    of law that--
                (A) is enacted after the submission of the plan required by
            subsection (a);
                (B) specifically refers to the plan and this section; and
                (C) specifically states that the plan required by subsection
            (a) is approved as submitted or with such amendments as may be
            contained in such law.

        (d) Basis for Charges for Goods And Services; Comptroller General
    Review.--(1) In the development of the proposed budget for the Defense
    Business Operations Fund for a fiscal year, the Secretary of Defense
    shall ensure that accurate and realistic pricing and quantity estimates
    are used regarding the goods and services to be provided by working-
    capital funds and industrial, commercial, and support type activities
    managed through the Fund.
        (2) The Secretary of Defense shall make available to the Comptroller
    General information used to establish the charges for goods and services
    to be provided by working-capital funds and industrial, commercial, and
    support type activities managed through the Fund. The Comptroller
    General shall conduct an annual review of the adequacy of the basis for
    the charges. <<NOTE: Reports.>>  Not later than 30 days after the date
    on which the Secretary submits the annual report and proposed budget for
    the Fund under subsection (h) of section 2216a of title 10, United
    States Code, as redesignated by section 1074(a)(10) of this Act, the
    Comptroller General shall submit to Congress a report containing the
    results of the review.
    SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE
                            BUSINESS OPERATIONS FUND.

        Section 2216a of title 10, United States Code, as redesignated by
    section 1074(a)(10) of this Act, is amended in subsection (i)(1) by
    striking out ``$50,000'' and inserting in lieu thereof ``$100,000''.

    SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

        (a) Authority for Donations From Defense Agencies.--Section 2485 of
    title 10, United States Code, is amended by striking out ``Secretary of
    a military department'' in subsections (a) and (b) and inserting in lieu
    thereof ``Secretary of Defense''.
        (b) Expansion of Eligible Recipients.--Such section is further
    amended--
                (1) in subsection (a), by striking out ``authorized
            charitable nonprofit food banks'' and inserting in lieu thereof
            ``entities specified under subsection (d)''; and
                (2) in subsection (d), by striking out ``may only be made''
            and all that follows and inserting in lieu thereof the
    following: ``may only be made to an entity that is one of the following:
                ``(1) A charitable nonprofit food bank that is designated by
            the Secretary of Defense or the Secretary of Health and Human
            Services as authorized to receive such donations.
                ``(2) A State or local agency that is designated by the
            Secretary of Defense or the Secretary of Health and Human
            Services as authorized to receive such donations.
                ``(3) A chapter or other local unit of a recognized national
            veterans organization that provides services to persons without
            adequate shelter and is designated by the Secretary of Veterans
            Affairs as authorized to receive such donations.

    [[Page 110 STAT. 2495]]

                ``(4) A not-for-profit organization that provides care for
            homeless veterans and is designated by the Secretary of Veterans
            Affairs as authorized to receive such donations.''.

        (c) Clarification of Food That May Be Donated.--Subsection (b) of
    such section is further amended by inserting ``rations known as
    humanitarian daily rations (HDRs),'' after ``(MREs),''.
    SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE
                            PRESIDENT.

        (a) In General.--Section 2543 of title 10, United States Code, is
    amended to read as follows:
    ``Sec. 2543. Equipment and services: Presidential inaugural
                        ceremonies

        ``(a) Assistance Authorized.--The Secretary of Defense may, with
    respect to the ceremonies relating to the inaugu-
    ration of a President, provide the assistance referred to in subsection
    (b) to--
                ``(1) the Presidential Inaugural Committee; and
                ``(2) the congressional Joint Inaugural Committee.

        ``(b) Assistance.--Assistance that may be provided under subsection
    (a) is the following:
                ``(1) Planning and carrying out activities relating to
            security and safety.
                ``(2) Planning and carrying out ceremonial activities.
                ``(3) Loan of property.
                ``(4) Any other assistance that the Secretary considers
            appropriate.

        ``(c) Reimbursement.--(1) The Presidential Inaugural Committee shall
    reimburse the Secretary for any costs incurred in connection with the
    provision to the committee of assistance referred to in subsection
    (b)(4).
        ``(2) Costs reimbursed under paragraph (1) shall be credited to the
    appropriations from which the costs were paid. The amount credited to an
    appropriation shall be proportionate to the amount of the costs charged
    to that appropriation.
        ``(d) Loaned Property.--With respect to property loaned for a
    presidential inauguration under subsection (b)(3), the Presidential
    Inaugural Committee shall--
                ``(1) return that property within nine days after the date
            of the ceremony inaugurating the President;
                ``(2) give good and sufficient bond for the return in good
            order and condition of that property;
                ``(3) indemnify the United States for any loss of, or damage
            to, that property; and
                ``(4) defray any expense incurred for the delivery, return,
            rehabilitation, replacement, or operation of that property.

        ``(e) Definitions.--In this section:
                ``(1) The term `Presidential Inaugural Committee' means the
            committee referred to in subsection (b)(2) of the first section
            of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721)
            that is appointed with respect to the inauguration of a
            President-elect and Vice President-elect.
                ``(2) The term `congressional Joint Inaugural Committee'
            means the joint committee of the Senate and House of
            Representatives referred to in the proviso in section 9 of the
            Presidential Inaugural Ceremonies Act (36 U.S.C. 729) that is

    [[Page 110 STAT. 2496]]

            appointed with respect to the inauguration of a President-elect
            and Vice President-elect.''.

        (b) Clerical Amendment.--The item relating to section 2543 in the
    table of sections at the beginning of chapter 152 of such title is
    amended to read as follows:

    ``2543. Equipment and services: Presidential inaugural ceremonies.''.

    SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.

        (a) Authority To Provide Support.--Subchapter II of chapter 152 of
    title 10, United States Code, is amended by adding at the end the
    following new section:

    ``Sec. 2554. Provision of support for certain sporting events

        ``(a) Security and Safety Assistance.--At the request of a Federal,
    State, or local government agency responsible for providing law
    enforcement services, security services, or safety services, the
    Secretary of Defense may authorize the commander of a military
    installation or other facility of the Department of Defense or the
    commander of a specified or unified combatant command to provide
    assistance for the World Cup Soccer Games, the Goodwill Games, the
    Olympics, and any other civilian sporting event in support of essential
    security and safety at such event, but only if the Attorney General
    certifies that such assistance is necessary to meet essential security
    and safety needs.
        ``(b) Other Assistance.--The Secretary of Defense may authorize a
    commander referred to in subsection (a) to provide assistance for a
    sporting event referred to in that subsection in support of other needs
    relating to such event, but only--
                ``(1) to the extent that such needs cannot reasonably be met
            by a source other than the Department;
                ``(2) to the extent that the provision of such assistance
            does not adversely affect the military preparedness of the armed
            forces; and
                ``(3) if the organization requesting such assistance agrees
            to reimburse the Department for amounts expended by the
            Department in providing the assistance in accordance with the
            provisions of section 377 of this title and other applicable
            provisions of law.

        ``(c) Inapplicability to Certain Events.--Subsections (a) and (b) do
    not apply to the following sporting events:
                ``(1) Sporting events for which funds have been appropriated
            before the date of the enactment of this Act.
                ``(2) The Special Olympics.
                ``(3) The Paralympics.

        ``(d) Terms and Conditions.--The Secretary of Defense may require
    such terms and conditions in connection with the provision of assistance
    under this section as the Secretary considers necessary and appropriate
    to protect the interests of the United States.
        ``(e) Report on Assistance.--Not later than January 30 of each year
    following a year in which the Secretary of Defense provides assistance
    under this section, the Secretary shall submit to Congress a report on
    the assistance provided. The report shall set forth--
                ``(1) a description of the assistance provided;
                ``(2) the amount expended by the Department in providing the
            assistance;

    [[Page 110 STAT. 2497]]

                ``(3) if the assistance was provided under subsection (a),
            the certification of the Attorney General with respect to the
            assistance under that subsection; and
                ``(4) if the assistance was provided under subsection (b)--
                        ``(A) an explanation why the assistance could not
                    reasonably be met by a source other than the Department;
                    and
                        ``(B) the amount the Department was reimbursed under
                    that subsection.

        ``(f) Relationship to Other Laws.--Assistance provided under this
    section shall be subject to the provisions of sections 375 and 376 of
    this title.''.

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

    ``2554. Provision of support for certain sporting events.''.

    SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

        (a) Storage Authorized.--(1) Section 2634 of title 10, United States
    Code, is amended--
                (A) by redesignating subsection (b) as subsection (g);
                (B) by transferring subsection (g), as so redesignated, to
            the end of such section; and
                (C) by inserting after subsection (a) the following new
            subsection:

        ``(b)(1) In lieu of transportation authorized by this section, if a
    member is ordered to make a change of permanent station to a foreign
    country and the laws, regulations, or other restrictions imposed by the
    foreign country or the United States preclude entry of a motor vehicle
    described in subsection (a) into that country, or would require
    extensive modification of the vehicle as a condition to entry, the
    member may elect to have the vehicle stored at the expense of the United
    States at a location approved by the Secretary concerned.
        ``(2) If a member is transferred or assigned in connection with a
    contingency operation to duty at a location other than the permanent
    station of the member for a period of more than 30 consecutive days, but
    the transfer or assignment is not considered a change of permanent
    station, the member may elect to have a motor vehicle described in
    subsection (a) stored at the expense of the United States at a location
    approved by the Secretary concerned.
        ``(3) Authorized expenses under this subsection include costs
    associated with the delivery of the motor vehicle for storage and
    removal of the vehicle for delivery to a destination approved by the
    Secretary concerned.''.
        (2)(A) The heading of such section is amended to read as follows:

    [[Page 110 STAT. 2498]]

    ``Sec. 2634. Motor vehicles: transportation or storage for members
                        on change of permanent station or extended
                        deployment''.

        (B) The item relating to such section in the table of sections at
    the beginning of chapter 157 of title 10, United States Code, is amended
    to read as follows:

    ``2634. Motor vehicles: transportation or storage for members on change
               of permanent station or extended deployment.''.

        (b) Conforming Amendment.--Subparagraph (B) of section 406(h)(1) of
    title 37, United States Code, is amended to read as follows:
                ``(B) in the case of a member described in paragraph (2)(A),
            authorize the transportation of one motor vehicle, which is
            owned or leased by the member (or a dependent of the member) and
            is for the personal use of a dependent of the member, to that
            location by means of transportation authorized under section
            2634 of title 10 or authorize the storage of the motor vehicle
            pursuant to subsection (b) of such section.''.

        (c) <<NOTE: 10 USC 2634 note.>>  Effective Date.--The amendments
    made by this section shall take effect on April 1, 1997.
    SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE FACILITIES
                            IN NATIONAL CAPITAL REGION.

        (a) Expansion of Authority.--Subsection (b) of section 2674 of title
    10, United States Code, is amended by striking out ``at the Pentagon
    Reservation'' and inserting in lieu thereof ``in the National Capital
    Region''.
        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:
    ``Sec. 2674. Operation and control of Pentagon Reservation and
                        defense facilities in National Capital
                        Region''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 159 of such title is amended to read as
    follows:

    ``2674. Operation and control of Pentagon Reservation and defense
               facilities in National Capital Region.''.

    SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER NAVAL ACADEMY
                SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND INSTRUMENTALITY.

        (a) In General.--Section 6971 of title 10, United States Code, is
    amended to read as follows:
     ``Sec. 6971. Midshipmen's store, trade shops, dairy, and laundry:
                        nonappropriated fund instrumentality and
                        accounts

        ``(a) Operation as Nonappropriated Fund Instrumentality.--The
    Superintendent of the Naval Academy shall operate the Naval Academy
    activities referred to in subsection (b) as a nonappropriated fund
    instrumentality under the jurisdiction of the Navy.
        ``(b) Covered Activities.--The nonappropriated fund instrumentality
    required under subsection (a) shall consist of the following Naval
    Academy activities:
                ``(1) The midshipmen's store.
                ``(2) The barber shop.

    [[Page 110 STAT. 2499]]

                ``(3) The cobbler shop.
                ``(4) The tailor shop.
                ``(5) The dairy.
                ``(6) The laundry.

        ``(c) Nonappropriated Fund Accounts.--The Superintendent of the
    Naval Academy shall administer a separate nonappropriated fund account
    for each of the Naval Academy activities included in the nonappropriated
    fund instrumentality required under subsection (a).
        ``(d) Crediting of Revenue.--The Superintendent shall credit all
    revenue received from a Naval Academy activity referred to in subsection
    (b) to the account administered with respect to that activity under
    subsection (c), and amounts so credited shall be available for operating
    expenses of that activity.
        ``(e) Regulations.--This section shall be carried out under
    regulations prescribed by the Secretary of the Navy.''.
        (b) Civil Service Employment Status of Employees of Covered
    Activities.--Section 2105(b) of title 5, United States Code, is
    amended--
                (1) by inserting ``who is'' after ``An individual''; and
                (2) by inserting ``and whose employment in such a position
            began before October 1, 1996, and has been uninterrupted in such
            a position since that date'' after ``Academy dairy,''.

        (c) Conforming Repeal.--Section 6970 of title 10, United States
    Code, is repealed.
        (d) Clerical Amendments.--The table of sections at the beginning of
    chapter 603 of title 10, United States Code, is amended by striking out
    the items relating to sections 6970 and 6971 and inserting in lieu
    thereof the following new item:

    ``6971. Midshipmen's store, trade shops, dairy, and laundry:
               nonappropriated fund instrumentality and accounts.''.

        (e) <<NOTE: 5 USC 2105 note.>>  Effective Date.--The amendments made
    by this section shall take effect on October 1, 1996.
    SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF
                            CIVILIAN STUDENTS AT FOREIGN LANGUAGE
                            INSTITUTE OF THE DEFENSE LANGUAGE
                            INSTITUTE.

        (a) Authority to Accept Reimbursement In Kind.--Section 559(a)(1) of
    the National Defense Authorization Act for Fiscal Year 1995 (Public Law
    103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) is amended--
                (1) by redesignating subsections (c), (d), and (e) as
            subsections (d), (e), and (f), respectively; and
                (2) by inserting after subsection (b) the following new
            subsection:

        ``(c) Reimbursement Options for Certain Instruction.--In the case of
    instruction provided to students described in subsection (a)(1), the
    Secretary may provide the instruction on a cost-reimbursable basis, a
    reimbursement-in-kind basis, or a combination of both options.
    Regardless of the reimbursement option, the value of the reimbursement
    received under this subsection may not be less than the amount charged
    for providing language instruction to Federal employees who are not
    Department of Defense employees. The Secretary may not delegate the
    authority to accept an offer for in-kind reimbursement below the level
    of the Assistant Secretary of the Army.''.

    [[Page 110 STAT. 2500]]

        (b) Conforming Amendments.--Such section is further amended--
                (1) in subsection (a)(1), by striking out ``cost-reimburs-
            able,''; and
                (2) in subsection (d), as redesignated by subsection (a)(1)
            of this section, by striking out ``subsection (a)'' the first
            place it appears and inserting in lieu thereof ``subsection (a)
            or (c)''.
    SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT
                            DEPENDENTS OF MEMBERS OF THE ARMED FORCES
                            AND DEPARTMENT OF DEFENSE CIVILIAN
                            EMPLOYEES.

        (a) Continuation of Department of Defense Program for Fiscal Year
    1997.--Of the amounts authorized to be appropriated in section 301(5)--
                (1) $30,000,000 shall be available for providing educational
            agencies assistance (as defined in subsection (d)(1)) to local
            educational agencies; and
                (2) $5,000,000 shall be available for making educational
            agencies payments (as defined in subsection (d)(2)) to local
            educational agencies.

        (b) Notification.--Not later than June 30, 1997, the Secretary of
    Defense shall--
                (1) notify each local educational agency that is eligible
            for educational agencies assistance for fiscal year 1997 of that
            agency's eligibility for such assistance and the amount of such
            assistance for which that agency is eligible; and
                (2) notify each local educational agency that is eligible
            for an educational agencies payment for fiscal year 1997 of that
            agency's eligibility for such payment and the amount of the
            payment for which that agency is eligible.

        (c) Disbursement of Funds.--The Secretary of Defense shall disburse
    funds made available under paragraphs (1) and (2) of subsection (a) not
    later than 30 days after the date on which notification to the eligible
    local educational agencies is provided pursuant to subsection (b).
        (d) Definitions.--In this section:
                (1) The term ``educational agencies assistance'' means
            assistance authorized under section 386(b) of the National
            Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
            484; 20 U.S.C. 7703 note).
                (2) The term ``educational agencies payments'' means
            payments authorized under section 386(d) of the National Defense
            Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20
            U.S.C. 7703 note).
                (3) The term ``local educational agency'' has the meaning
            given that term in section 8013(9) of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
    SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND
                            ACCOUNTING SERVICE CENTER, FORT BENJAMIN
                            HARRISON, INDIANA.

        (a) Transfer Authority.--To pay the costs of planning, design, and
    renovation of Building One, Fort Benjamin Harrison, Indiana, for use as
    a Defense Finance and Accounting Service Center, the Secretary of
    Defense may transfer to the Administrator of General Services in the
    manner provided in subsection (b) funds available

    [[Page 110 STAT. 2501]]

    to the Department of Defense for the Defense Finance and Accounting
    Service for a fiscal year for operation and maintenance.
        (b) Authority Subject to Authorizations and Appropriations.--To the
    extent provided in appropriations Acts--
                (1) of funds described in subsection (a) and appropriated
            for fiscal year 1997, $9,000,000 may be transferred under such
            subsection; and
                (2) of funds described in subsection (a) and appropriated
            for fiscal years 1998, 1999, 2000, and 2001, funds may be
            transferred under such subsection in such amounts as are
            authorized to be transferred in an Act enacted after the date of
            the enactment of this Act.

        (c) <<NOTE: Effective date.>>  Authority Subject To Agreement
    Between Department of Defense and General Services Administration.--The
    transfer authority provided in subsection (a) shall not take effect
    until the date on which the Secretary of Defense and the Administrator
    of General Services enter into an agreement that provides for the
    Department of Defense to receive a full reimbursement for the funds
    transferred under such subsection. Such reimbursement may include
    reimbursement in the form of reduced or static rental rates for Building
    One.

    SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

        (a) Program Authorized.--The Secretaries of the military departments
    and the Secretary of Transportation may each carry out a food donation
    pilot program at the service academy under the jurisdiction of such
    Secretary.
        (b) Donations and Collections of Food and Grocery Products.--Under
    the pilot program, the Secretary concerned may donate to, and permit
    others to collect for, a nonprofit organization any food or grocery
    product that--
                (1) is--
                        (A) an apparently wholesome food;
                        (B) an apparently fit grocery product; or
                        (C) a food or grocery product that is donated in
                    accordance with section 402(e) of the National and
                    Community Service Act of 1990 (42 U.S.C. 12672(e));
                (2) is owned by the United States;
                (3) is located at a service academy under the jurisdiction
            of such Secretary; and
                (4) is excess to the requirements of the academy.

        (c) Program Commencement.--The Secretary concerned shall commence
    carrying out the pilot program, if at all, during fiscal year 1997.
        (d) Applicability of Good Samaritan Food Donation Act.--Section 402
    of the National and Community Service Act of 1990 (42 U.S.C. 12672)
    shall apply to donations and collections of food and grocery products
    under the pilot program without regard to section 403 of such Act (42
    U.S.C. 12673).
        (e) Reports.--(1) Each Secretary that carries out a pilot program at
    a service academy under this section shall submit to Congress an interim
    report and a final report on the pilot program.
        (2) The Secretary concerned shall submit the interim report not
    later than one year after the date on which the Secretary commences the
    pilot program at a service academy.

    [[Page 110 STAT. 2502]]

        (3) The Secretary concerned shall submit the final report not later
    than 90 days after the Secretary completes the pilot program at a
    service academy.
        (4) Each report shall include the following:
                (A) A description of the conduct of the pilot program.
                (B) A discussion of the experience under the pilot program.
                (C) An evaluation of the extent to which section 402 of the
            National and Community Service Act of 1990 (42 U.S.C. 12672) has
            been effective in protecting the United States and others from
            liabilities associated with actions taken under the pilot
            program.
                (D) Any recommendations for legislation to facilitate
            donations or collections of excess food and grocery products of
            the United States or others for nonprofit organizations.

        (f) Definitions.--For purposes of this section:
                (1) The term ``service academy'' means each of the
            following:
                        (A) The United States Military Academy.
                        (B) The United States Naval Academy.
                        (C) The United States Air Force Academy.
                        (D) The United States Coast Guard Academy.
                (2) The term ``Secretary concerned'' means the following:
                        (A) The Secretary of the Army, with respect to the
                    United States Military Academy.
                        (B) The Secretary of the Navy, with respect to the
                    United States Naval Academy.
                        (C) The Secretary of the Air Force, with respect to
                    the United States Air Force Academy.
                        (D) The Secretary of Transportation, with respect to
                    the United States Coast Guard Academy.
                (3) The terms ``apparently fit grocery product'',
            ``apparently wholesome food'', ``donate'', ``food'', and
            ``grocery product'' have the meanings given those terms in
            section 402(b) of the National and Community Service Act of 1990
            (42 U.S.C. 12672(b)).
    SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN
                            SERVICES AT LINCOLN MUNICIPAL AIRPORT,
                            LINCOLN, NEBRASKA.

        (a) Authority.--The Nebraska Air National Guard may provide fire
    protection services and rescue services relating to aircraft at Lincoln
    Municipal Airport, Lincoln, Nebraska, on behalf of the Lincoln Municipal
    Airport Authority, Lincoln, Nebraska.
        (b) Agreement.--The Nebraska Air National Guard may not provide
    services under subsection (a) until the Nebraska Air National Guard and
    the authority enter into an agreement under which the authority agrees--
                (1) to reimburse the Nebraska Air National Guard for the
            cost of the services provided; and
                (2) to hold harmless and indemnify the United States, except
            in cases of willful misconduct or gross negligence, from any
            claim for damages or injury to any person or property arising
            out of the provision of, or the failure to provide, such
            services.

        (c) Effect on Military Preparedness.--Services may only be provided
    under subsection (a) to the extent that the provision of such services
    does not adversely affect the military preparedness of the Armed Forces.

    [[Page 110 STAT. 2503]]

    SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID
                            PROGRAM.

        Paragraph (3) of section 8003(a) of the Elementary and  Secondary
    Education Act of 1965 (20 U.S.C. 7703(a)) is amended by striking out
    ``2,000 and such number equals or exceeds 15'' and inserting in lieu
    thereof ``1,000 or such number equals or exceeds 10''.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Permanent end strength levels to support two major regional
                        contingencies.
    Sec. 403. Authorized strengths for commissioned officers on active duty
                        in grades of major, lieutenant colonel, and colonel
                        and navy grades of lieutenant commander, commander,
                        and captain.
    Sec. 404. Extension of requirement for recommendations regarding
                        appointments to joint 4-star officer positions.
    Sec. 405. Increase in authorized number of general officers on active
                        duty in the Marine Corps.

                           Subtitle B--Reserve Forces

    Sec. 411. End strengths for Selected Reserve.
    Sec. 412. End strengths for reserves on active duty in support of the
                        Reserves.
    Sec. 413. End strengths for military technicians.
    Sec. 414. Assurance of continued assignment of military personnel to
                        serve in
                        Selective Service System.

                   Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                            Subtitle A--Active Forces

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

        The Armed Forces are authorized strengths for active duty personnel
    as of September 30, 1997, as follows:
                (1) The Army, 495,000.
                (2) The Navy, 407,318.
                (3) The Marine Corps, 174,000.
                (4) The Air Force, 381,100.

    SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL
                CONTINGENCIES.

        (a) Requirement To Budget for and Maintain Statutory End Strength
    Levels.--Section 691 of title 10, United States Code, is amended--
                (1) by redesignating subsections (d) and (e) as subsections
            (e) and (f), respectively; and
                (2) by striking out subsection (c) and inserting in lieu
            thereof the following:

        ``(c) The budget for the Department of Defense for any fiscal year
    as submitted to Congress shall include amounts for funding for each of
    the armed forces (other than the Coast Guard) at least in the amounts
    necessary to maintain the active duty end strengths prescribed in
    subsection (b), as in effect at the time that such budget is submitted.

    [[Page 110 STAT. 2504]]

        ``(d) No funds appropriated to the Department of Defense may be used
    to implement a reduction of the active duty end strength for any of the
    armed forces (other than the Coast Guard) for any fiscal year below the
    level specified in subsection (b) unless the reduction in end strength
    for that armed force for that fiscal year is specifically authorized by
    law.''.
        (b) Temporary Flexibility Relating to Permanent End Strength
    Levels.--Subsection (e) of such section, as redesignated by subsection
    (a)(1), is amended by striking out ``not more than 0.5 percent'' and
    inserting in lieu thereof ``not more than 1 percent''.
    SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON ACTIVE
                            DUTY IN GRADES OF MAJOR, LIEUTENANT
                            COLONEL, AND COLONEL AND NAVY GRADES OF
                            LIEUTENANT COMMANDER, COMMANDER, AND
                            CAPTAIN.

        (a) Revision in Army, Air Force, and Marine Corps Limitations.--The
    table in paragraph (1) of section 523(a) of title 10, United States
    Code, is amended to read as follows:

    ----------------------------------------------------------------------------------------------------------------
                                                                         Number of officers who may be serving on
                                                                               active duty in the grade of:
     ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
         categories specified in subsection (b)) on active duty:                        Lieutenant
                                                                           Major          Colonel         Colonel
    ----------------------------------------------------------------------------------------------------------------
    Army:
      20,000........................................................           6,848           5,253        1,613
      25,000........................................................           7,539           5,642        1,796
      30,000........................................................           8,231           6,030        1,980
      35,000........................................................           8,922           6,419        2,163
      40,000........................................................           9,614           6,807        2,347
      45,000........................................................          10,305           7,196        2,530
      50,000........................................................          10,997           7,584        2,713
      55,000........................................................          11,688           7,973        2,897
      60,000........................................................          12,380           8,361        3,080
      65,000........................................................          13,071           8,750        3,264
      70,000........................................................          13,763           9,138        3,447
      75,000........................................................          14,454           9,527        3,631
      80,000........................................................          15,146           9,915        3,814
      85,000........................................................          15,837          10,304        3,997
      90,000........................................................          16,529          10,692        4,181
      95,000........................................................          17,220          11,081        4,364
      100,000.......................................................          17,912          11,469        4,548
      110,000.......................................................          19,295          12,246        4,915
      120,000.......................................................          20,678          13,023        5,281
      130,000.......................................................          22,061          13,800        5,648
      170,000.......................................................          27,593          16,908        7,116
    Air Force:
      35,000........................................................           9,216           7,090        2,125
      40,000........................................................          10,025           7,478        2,306
      45,000........................................................          10,835           7,866        2,487
      50,000........................................................          11,645           8,253        2,668
      55,000........................................................          12,454           8,641        2,849
      60,000........................................................          13,264           9,029        3,030
      65,000........................................................          14,073           9,417        3,211

    [[Page 110 STAT. 2505]]

      70,000........................................................          14,883           9,805        3,392
      75,000........................................................          15,693          10,193        3,573
      80,000........................................................          16,502          10,582        3,754
      85,000........................................................          17,312          10,971        3,935
      90,000........................................................          18,121          11,360        4,115
      95,000........................................................          18,931          11,749        4,296
      100,000.......................................................          19,741          12,138        4,477
      105,000.......................................................          20,550          12,527        4,658
      110,000.......................................................          21,360          12,915        4,838
      115,000.......................................................          22,169          13,304        5,019
      120,000.......................................................          22,979          13,692        5,200
      125,000.......................................................          23,789          14,081        5,381
    Marine Corps:
      10,000........................................................           2,525           1,480          571
      12,500........................................................           2,900           1,600          592
      15,000........................................................           3,275           1,720          613
      17,500........................................................           3,650           1,840          633
      20,000........................................................           4,025           1,960          654
      22,500........................................................           4,400           2,080          675
      25,000........................................................           4,775           2,200          695.''
    ----------------------------------------------------------------------------------------------------------------

        (b) Revision in Navy Limitations.--The table in paragraph (2) of
    such section is amended to read as follows:

    ----------------------------------------------------------------------------------------------------------------
                                                                         Number of officers who may be serving on
                                                                                 active duty in grade of:
     ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
         categories specified in subsection (b)) on active duty:        Lieutenant
                                                                         commander       Commander        Captain
    ----------------------------------------------------------------------------------------------------------------
    Navy:
      30,000........................................................           7,331           5,018        2,116
      33,000........................................................           7,799           5,239        2,223
      36,000........................................................           8,267           5,460        2,330
      39,000........................................................           8,735           5,681        2,437
      42,000........................................................           9,203           5,902        2,544
      45,000........................................................           9,671           6,123        2,651
      48,000........................................................          10,139           6,343        2,758
      51,000........................................................          10,606           6,561        2,864
      54,000........................................................          11,074           6,782        2,971
      57,000........................................................          11,541           7,002        3,078
      60,000........................................................          12,009           7,222        3,185
      63,000........................................................          12,476           7,441        3,292
      66,000........................................................          12,944           7,661        3,398
      70,000........................................................          13,567           7,954        3,541
      90,000........................................................          16,683           9,419        4,254.''
    ----------------------------------------------------------------------------------------------------------------

        (c) Repeal of Temporary Authority for Variations in End Strengths.--
    The following provisions of law are repealed:

    [[Page 110 STAT. 2506]]

                (1) Section 402 of the National Defense Authorization Act
            for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10
            U.S.C. 523 note).
                (2) Section 402 of the National Defense Authorization Act
            for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10
            U.S.C. 523 note).
                (3) Section 402 of the National Defense Authorization Act
            for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10
            U.S.C. 523 note).

        (d) <<NOTE: 10 USC 523 note.>>  Effective Date.--The amendments made
    by subsections (a), (b), and (c) shall take effect on September 1, 1997.

    SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS REGARDING
                APPOINTMENTS TO JOINT 4-STAR OFFICER POSITIONS.

        (a) Service Secretary Recommendation Required.--Section 604(c) of
    title 10, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 2000''.
        (b) Grade Relief When Recommendation Made.--Section 525(b)(5)(C) of
    such title is amended by striking out ``September 30, 1997'' and
    inserting in lieu thereof ``September 30, 2000''.
    SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS ON
                            ACTIVE DUTY IN THE MARINE CORPS.

        Section 526(a)(4) of title 10, United States Code, is amended by
    striking out ``68'' and inserting in lieu thereof ``80''.

                           Subtitle B--Reserve Forces

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

        (a) In General.--The Armed Forces are authorized strengths for
    Selected Reserve personnel of the reserve components as of September 30,
    1997, as follows:
                (1) The Army National Guard of the United States, 366,758.
                (2) The Army Reserve, 215,179.
                (3) The Naval Reserve, 96,304.
                (4) The Marine Corps Reserve, 42,000.
                (5) The Air National Guard of the United States, 109,178.
                (6) The Air Force Reserve, 73,311.
                (7) The Coast Guard Reserve, 8,000.

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

    [[Page 110 STAT. 2507]]

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

    SEC. 412. <<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, 1997,
    the following number of Reserves to be serving on full-time active duty
    or full-time duty, in the case of members of the National Guard, for the
    purpose of organizing, administering, recruiting, instructing, or
    training the reserve components:
                (1) The Army National Guard of the United States, 22,798.
                (2) The Army Reserve, 11,729.
                (3) The Naval Reserve, 16,603.
                (4) The Marine Corps Reserve, 2,559.
                (5) The Air National Guard of the United States, 10,403.
                (6) The Air Force Reserve, 655.

    SEC. 413 <<NOTE: 10 USC 115 note.>> . END STRENGTHS FOR MILITARY
                TECHNICIANS.

        (a) Authorization for Fiscal Year 1997.--The minimum number of
    military technicians as of the last day of fiscal year 1997 for the
    reserve components of the Army and the Air Force (notwithstanding
    section 129 of title 10, United States Code) shall be the following:
                (1) For the Army Reserve, 6,799.
                (2) For the Army National Guard of the United States,
            25,500.
                (3) For the Air Force Reserve, 9,802.
                (4) For the Air National Guard of the United States, 23,299.

        (b) Information To Be Provided With Future Authorization Requests.--
    Section 10216 of title 10, United States Code, is amended--
                (1) by redesignating subsection (b) as subsection (c); and
                (2) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) Information Required To Be Submitted With Annual End Strength
    Authorization Request.--(1) The Secretary of Defense shall include as
    part of the budget justification documents submitted to Congress with
    the budget of the Department of Defense for any fiscal year the
    following information with respect to the end strengths for military
    technicians requested in that budget pursuant to section 115(g) of this
    title, shown separately for each of the Army and Air Force reserve
    components:
                ``(A) The number of dual-status technicians in the high
            priority units and organizations specified in subsection (a)(1).
                ``(B) The number of technicians other than dual-status
            technicians in the high priority units and organizations
            specified in subsection (a)(1).
                ``(C) The number of dual-status technicians in other than
            high priority units and organizations specified in subsection
            (a)(1).
                ``(D) The number of technicians other than dual-status
            technicians in other than high priority units and organizations
            specified in subsection (a)(1).

    [[Page 110 STAT. 2508]]

        ``(2)(A) If the budget submitted to Congress for any fiscal year
    requests authorization for that fiscal year under section 115(g) of this
    title of a military technician end strength for a reserve component of
    the Army or Air Force in a number that constitutes a reduction from the
    end strength minimum established by law for that reserve component for
    the fiscal year during which the budget is submitted, the Secretary of
    Defense shall submit to the congressional defense committees with that
    budget a justification providing the basis for that requested reduction
    in technician end strength.
        ``(B) Any justification submitted under subparagraph (A) shall
    clearly delineate--
                ``(i) in the case of a reduction that includes a reduction
            in technicians described in subparagraph (A) or (C) of paragraph
            (1), the specific force structure reductions forming the basis
            for such requested technician reduction (and
    the numbers related to those force structure reductions); and
                ``(ii) in the case of a reduction that includes reductions
            in technicians described in subparagraphs (B) or (D) of
            paragraph (1), the specific force structure reductions,
            Department of Defense civilian personnel reductions, or other
            reasons forming the basis for such requested technician
            reduction (and the numbers related to those reductions).''.

        (c) Technical Amendments.--Such section is further
    amended--
                (1) in subsection (a), by striking out ``section 115'' and
            inserting in lieu thereof ``section 115(g)''; and
                (2) in subsection (c), as redesignated by subsection (b)(1),
            by striking out ``after the date of the enactment of this
            section'' both places it appears and inserting in lieu thereof
            ``after February 10, 1996,''.
    SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY PERSONNEL
                            TO SERVE IN SELECTIVE SERVICE SYSTEM.

        (a) Number of Military Personnel To Be Assigned.--Section 10 of the
    Military Selective Service Act (50 U.S.C. App. 460) is amended--
                (1) in subsection (b)(2), by inserting ``, subject to
            subsection (e),'' after ``to employ such number of civilians,
            and''; and
                (2) by inserting after subsection (d) the following new
            subsection:

        ``(e) The total number of armed forces personnel assigned to the
    Selective Service System under subsection (b)(2) at any time may not be
    less than the number of such personnel determined by the Director of
    Selective Service to be necessary, but not to exceed 745 persons, except
    that the President may assign additional armed forces personnel to the
    Selective Service System during a time of war or a national emergency
    declared by Congress or the President.''.
        (b) Stylistic Amendments.--Subsection (b) of such section is
    amended--
                (1) by striking out ``authorized--'' in the matter preceding
            paragraph (1) and inserting in lieu thereof ``authorized to
            undertake the following:'';
                (2) by striking out ``to'' at the beginning of paragraphs
            (1) through (7) and inserting in lieu thereof ``To'';

    [[Page 110 STAT. 2509]]

                (3) by striking out ``subject'' at the beginning of
            paragraphs (8), (9), and (10) and inserting in lieu thereof
            ``Subject''; and
                (4) by striking out the semicolon at the end of paragraphs
            (1) through (9) and inserting in lieu thereof a period.

                   Subtitle C--Authorization of Appropriations

    SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

        There is hereby authorized to be appropriated to the Department of
    Defense for military personnel for fiscal year 1997 a total of
    $70,056,130,000. The authorization in the preceding sentence supersedes
    any other authorization of appropriations (definite or indefinite) for
    such purpose for fiscal year 1997.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    Sec. 501. Grade of Chief of Naval Research.
    Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force
                        Nurse Corps.
    Sec. 503. Navy spot promotion authority for certain lieutenants with
                        critical skills.
    Sec. 504. Time for award of degrees by unaccredited educational
                        institutions for graduates to be considered
                        educationally qualified for appointment as Reserve
                        officers in grade O-3.
    Sec. 505. Exception to baccalaureate degree requirement for appointment
                        in the Naval Reserve in grades above O-2.
    Sec. 506. Chief warrant officer promotions.
    Sec. 507. Service credit for senior ROTC cadets and midshipmen in
                        simultaneous membership program.
    Sec. 508. Continuation on active status for certain Reserve officers of
                        the Air Force.
    Sec. 509. Reports on response to recommendations concerning improvements
                        to
                        Department of Defense joint manpower process.
    Sec. 510. Frequency of reports to Congress on joint officer management
                        policies.

                      Subtitle B--Enlisted Personnel Policy

    Sec. 511. Career service reenlistments for members with at least 10
                        years of
                        service.
    Sec. 512. Authority to extend period for entry on active duty under the
                        delayed entry program.

                        Subtitle C--Activation and Recall

    Sec. 521. Limitations on recall of retired members to active duty.
    Sec. 522. Clarification of definition of active status.
    Sec. 523. Limitation of requirement for physical examinations of members
                        of
                        National Guard called into Federal service.

                    Subtitle D--Reserve Component Retirement

    Sec. 531. Increase in annual limit on days of inactive duty training
                        creditable
                        toward reserve retirement.
    Sec. 532. Retirement of reserve enlisted members who qualify for active
                        duty
                        retirement after administrative reduction in
                        enlisted grade.
    Sec. 533. Authority for a Reserve on active duty to waive retirement
                        sanctuary.
    Sec. 534. Eligibility of Reserves for disability retirement.

                   Subtitle E--Other Reserve Component Matters

    Sec. 541. Training for Reserves on active duty in support of the
                        Reserves.
    Sec. 542. Eligibility for enrollment in Ready Reserve mobilization
                        income insurance program.
    Sec. 543. Reserve credit for participation in Health Professions
                        Scholarship and
                        Financial Assistance Program.

    [[Page 110 STAT. 2510]]

    Sec. 544. Amendments to Reserve Officer Personnel Management Act
                        provisions.
    Sec. 545. Report on number of advisers in active component support of
                        Reserves pilot program.
    Sec. 546. Sense of Congress and report regarding reemployment rights for
                        mobilized Reservists employed in foreign countries.
    Sec. 547. Payment of premiums under Mobilization Income Insurance
                        Program.

                     Subtitle F--Officer Education Programs

    Sec. 551. Oversight and management of Senior Reserve Officers' Training
                        Corps program.
    Sec. 552. Prohibition on reorganization of Army ROTC cadet command or
                        termination of senior ROTC units pending report on
                        ROTC.
    Sec. 553. Pilot program to test expansion of ROTC program to include
                        graduate students.
    Sec. 554. Demonstration project for instruction and support of Army ROTC
                        units by members of the Army Reserve and National
                        Guard.
    Sec. 555. Extension of maximum age for appointment as a cadet or
                        midshipman in the Senior Reserve Officers' Training
                        Corps and the service academies.
    Sec. 556. Expansion of eligibility for education benefits to include
                        certain Reserve Officers' Training Corps (ROTC)
                        participants.
    Sec. 557. Comptroller General report on cost and policy implications of
                        permitting up to five percent of service academy
                        graduates to be assigned directly to Reserve duty
                        upon graduation.

                       Subtitle G--Decorations and Awards

    Sec. 561. Authority for award of Medal of Honor to certain African
                        American
                        soldiers who served during World War II.
    Sec. 562. Waiver of time limitations for award of certain decorations to
                        specified persons.
    Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                            Subtitle H--Other Matters

    Sec. 571. Hate crimes in the military.
    Sec. 572. Disability coverage for members granted excess leave for
                        educational or emergency purposes.
    Sec. 573. Clarification of authority of a reserve judge advocate to act
                        as a military notary public when not in a duty
                        status.
    Sec. 574. Panel on jurisdiction of courts-martial for the National Guard
                        when not in Federal service.
    Sec. 575. Authority to expand law enforcement placement program to
                        include firefighters.
    Sec. 576. Improvements to program to assist separated military and
                        civilian
                        personnel to obtain employment as teachers or
                        teachers' aides.
    Sec. 577. Retirement at grade to which selected for promotion when a
                        physical disability is found at any physical
                        examination.
    Sec. 578. Revisions to missing persons authorities.

           Subtitle I--Commissioned Corps of the Public Health Service

    Sec. 581. Applicability to Public Health Service of prohibition on
                        crediting cadet or midshipmen service at the service
                        academies.
    Sec. 582. Exception to strength limitations for Public Health Service
                        officers
                        assigned to the Department of Defense.
    Sec. 583. Authority to provide legal assistance to Public Health Service
                        officers.

                      Subtitle A--Officer Personnel Policy

    SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

        (a) Rear Admiral (Upper Half).--Section 5022(a) of title 10, United
    States Code, is amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following:

        ``(2) Unless appointed to higher grade under another provision of
    law, an officer, while serving in the Office of Naval Research as Chief
    of Naval Research, has the rank of rear admiral (upper half).''.
        (b) <<NOTE: 10 USC 5022 note.>>  Effective Date.--Paragraph (2) of
    section 5022(a) of title 10, United States Code, as added by subsection
    (a), shall take

    [[Page 110 STAT. 2511]]

    effect upon the occurrence of the first vacancy in the position of Chief
    of Naval Research after the date of the enactment of this Act.
    Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND AIR
                            FORCE NURSE CORPS.

        (a) Army Nurse Corps.--(1) Subsection (b) of section 3069 of title
    10, United States Code, is amended--
                (A) in the first sentence, by striking out ``major'' and
            inserting in lieu thereof ``lieutenant colonel'';
                (B) by inserting after the first sentence the following:
            ``An appointee who holds a lower regular grade shall be
            appointed in the regular grade of brigadier general.''; and
                (C) in the last sentence, by inserting ``to the same
            position'' before the period at the end.

        (2) Subsection (c) of such section is amended by striking out
    ``major'' in the first sentence and inserting in lieu thereof
    ``lieutenant colonel''.
        (3) The heading of such section is amended to read as follows:
     ``Sec. 3069. Army Nurse Corps: composition; Chief and assistant
                        chief; appointment; grade

        (b) Air Force Nurse Corps.--Chapter 807 of such title is amended by
    inserting after section 8067 the following new section:
     ``Sec. 8069. Air Force nurses: Chief and assistant chief;
                        appointment; grade

        ``(a) Positions of Chief and Assistant Chief.--There are a Chief and
    assistant chief of the Air Force Nurse Corps.
        ``(b) Chief.--The Secretary of the Air Force shall appoint the Chief
    from the officers of the Regular Air Force designated as Air Force
    nurses whose regular grade is above lieutenant colonel and who are
    recommended by the Surgeon General. An appointee who holds a lower
    regular grade shall be appointed in the regular grade of brigadier
    general. The Chief serves during the pleasure of the Secretary, but not
    for more than three years, and may not be reappointed to the same
    position.
        ``(c) Assistant Chief.--The Surgeon General shall appoint the
    assistant chief from the officers of the Regular Air Force designated as
    Air Force nurses whose regular grade is above lieutenant colonel.''.
        (c) Clerical Amendments.--(1) The item relating to section 3069 in
    the table of sections at the beginning of chapter 307 of such title is
    amended to read as follows:
    ``3069. Army Nurse Corps: composition; Chief and assistant chief;
                        appointment; grade.''.

        (2) The table of sections at the beginning of chapter 807 of such
    title is amended by inserting after the item relating to section 8067
    the following new item:
    ``8069. Air Force Nurse Corps: Chief and assistant chief; appointment;
                        grade.''.

    Sec. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN
                LIEUTENANTS WITH CRITICAL SKILLS.

        (a) Advice-and-Consent Appointments.--Subsection (a) of section 5721
    of title 10, United States Code, is amended by striking out ``the
    President alone'' and inserting in lieu thereof ``the President, by and
    with the advice and consent of the Senate''.

    [[Page 110 STAT. 2512]]

        (b) Repeal of Termination of Authority.--Such section is further
    amended by striking out subsection (g).

        (c) Clerical Amendment.--The caption for subsection (a) is amended
    to read as follows: ``Promotion Authority for Certain Officers With
    Critical Skills.--''.
    SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED
                            EDUCATIONAL INSTITUTIONS FOR GRADUATES TO
                            BE CONSIDERED EDUCATIONALLY QUALIFIED FOR
                            APPOINTMENT AS RESERVE OFFICERS IN GRADE
                            O-3.

        Section 12205(c)(2)(C) of title 10, United States Code, is amended
    by striking out ``three years'' and inserting in lieu thereof ``eight
    years''.
    SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR
                            APPOINTMENT IN THE NAVAL RESERVE IN GRADES
                            ABOVE O-2.

        Section 12205(b)(3) of title 10, United States Code, is amended by
    inserting ``or the Seaman to Admiral program'' after ``(NAVCAD)
    program''.
    SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

        (a) Reduction of Minimum Time in Grade Required for Consideration
    for Promotion.--Section 574(e) of title 10, United States Code, is
    amended by striking out ``three years of service'' and inserting in lieu
    thereof ``two years of service''.
        (b) Below-Zone Selection.--Section 575(b)(1) of such title is
    amended by inserting ``chief warrant officer, W-3,'' in the first
    sentence after ``to consider warrant officers for selection for
    promotion to the grade of''.
    SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN
                            SIMULTANEOUS MEMBERSHIP PROGRAM.

        (a) Amendments to Title 10.--(1) Section 2106(c) of title 10, United
    States Code, is amended by striking out ``while serving on active duty
    other than for training after July 31, 1990, while a member of the
    Selected Reserve'' and inserting in lieu thereof ``performed on or after
    August 1, 1979, as a member of the Selected Reserve''.
        (2) Section 2107(g) of such title is amended by striking out ``while
    serving on active duty other than for training after July 31, 1990,
    while a member of the Selected Reserve'' and inserting in lieu thereof
    ``performed on or after August 1, 1979, as a member of the Selected
    Reserve''.
        (3) Section 2107a(g) of such title is amended by inserting
    ``, other than enlisted service performed after August 1, 1979, as a
    member of Selected Reserve'' after ``service as a cadet or with
    concurrent enlisted service''.
        (b) Amendment to Title 37.--Section 205(d) of title 37, United
    States Code, is amended by striking out ``that service after July 31,
    1990, that the officer performed while serving on active duty'' and
    inserting in lieu thereof ``for service that the officer performed on or
    after August 1, 1979.''.
        (c) <<NOTE: 10 USC 2106 note.>>  Benefits Not To Accrue for Prior
    Periods.--No increase in pay or retired or retainer pay shall accrue for
    periods before the date of the enactment of this Act by reason of the
    amendments made by this section.

    [[Page 110 STAT. 2513]]

    SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE
                            OFFICERS OF THE AIR FORCE.

        (a) Authority.--Section 14507 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(c) Temporary Authority To Retain Certain Officers Designated as
    Judge Advocates.--(1) Notwithstanding the provisions of subsections (a)
    and (b), the Secretary of the Air Force may retain on the reserve
    active-status list any reserve officer of the Air Force who is
    designated as a judge advocate and who obtained the first professional
    degree in law while on an educational delay program subsequent to being
    commissioned through the Reserve Officers' Training Corps.
        ``(2) No more than 50 officers may be retained on the reserve
    active-status list under the authority of paragraph (1) at any time.
        ``(3) No officer may be retained on the reserve active-status list
    under the authority of paragraph (1) for a period exceeding three years
    from the date on which, but for that authority, that officer would have
    been removed from the reserve active-status list under subsection (a) or
    (b).
        ``(4) <<NOTE: Expiration date.>>  The authority of the Secretary of
    the Air Force under paragraph (1) expires on September 30, 2003.''.

      (b) <<NOTE: 10 USC 14507 note.>>  Effective Date.--Subsection (c) of
    section 14507 of title 10, United States Code, as added by subsection
    (a), shall take effect on October 1, 1996.
    SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING
                            IMPROVEMENTS TO DEPARTMENT OF DEFENSE
                            JOINT MANPOWER PROCESS.

        (a) Semiannual Report.--The Secretary of Defense shall submit to
    Congress a semiannual report on the status of actions taken by the
    Secretary to implement the recommendations made by the Department of
    Defense Inspector General in the report of November 29, 1995, entitled
    ``Inspection of the Department of Defense Joint Manpower Process''
    (Report No. 96-029). The first such report shall be submitted not later
    than February 1, 1997. The requirement <<NOTE: Termination date.>> to
    submit such reports terminates after the fourth such report is
    submitted.

        (b) Additional Matter for First Report.--As part of the first report
    under subsection (a), the Secretary shall include the following:
                (1) The Secretary's assessment as to the need to establish a
            joint, centralized permanent organization in the Department of
            Defense to determine, validate, approve, and manage military and
            civilian manpower requirements resources at joint organizations.
                (2) The Secretary's assessment of the Department of Defense
            timeline and plan to increase the capability of the joint
            professional military education system (including the Armed
            Forces Staff College) to overcome the capacity limitations cited
            in the report referred to in subsection (a).
                (3) The Secretary's plan and timeline to provide the
            necessary training and education of reserve component officers.

        (c) GAO Assessment.--The Comptroller General of the United States
    shall assess the completeness and adequacy of the corrective actions
    taken by the Secretary with respect to the matters covered in the
    Inspector General report referred to in subsection (a). Not later than
    one year after the date of the enactment of this Act,

    [[Page 110 STAT. 2514]]

    the Comptroller General shall submit to Congress a report, based on the
    assessment under this subsection, providing the Comptroller General's
    findings and recommendations.
    SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER
                            MANAGEMENT POLICIES.

        (a) Change from Semiannual to Annual Report.--Section 662(b) of
    title 10, United States Code, is amended by striking out ``Report.--The
    Secretary of Defense shall periodically (and not less often than every
    six months) report to Congress on the promotion rates'' and inserting in
    lieu thereof ``Annual Report.--Not later than January 1 of each year,
    the Secretary of Defense shall submit to Congress a report on the
    promotion rates during the preceding fiscal year''.
        (b) Technical and Conforming Amendments.--Such section is further
    amended--
                (1) in the first sentence, by striking out ``clauses'' and
            inserting in lieu thereof ``paragraphs''; and
                (2) in the second sentence--
                        (A) by inserting ``for any fiscal year'' after
                    ``such objectives''; and
                        (B) by striking out ``periodic report required by
                    this subsection'' and inserting in lieu thereof ``report
                    for that fiscal year''.

                      Subtitle B--Enlisted Personnel Policy

    SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT LEAST
                            10 YEARS OF SERVICE.

        Subsection (d) of section 505 of title 10, United States Code, is
    amended to read as follows:
        ``(d)(1) The Secretary concerned may accept a reenlistment in the
    Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps, or
    Regular Coast Guard, as the case may be, for a period determined under
    this subsection.
        ``(2) In the case of a member who has less than 10 years of service
    in the armed forces as of the day before the first day of the period for
    which reenlisted, the period for which the member reenlists shall be at
    least two years but not more than six years.
        ``(3) In the case of a member who has at least 10 years of service
    in the armed forces as of the day before the first day of the period for
    which reenlisted, the Secretary concerned may accept a reenlistment for
    either--
                ``(A) a specified period of at least two years but not more
            than six years; or
                ``(B) an unspecified period.

        ``(4) No enlisted member is entitled to be reenlisted for a period
    that would expire before the end of the member's current enlistment.''.
    SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY
                            UNDER THE DELAYED ENTRY PROGRAM.

        (a) Authority.--Section 513(b) of title 10, United States Code, is
    amended by inserting after the first sentence the following: ``The
    Secretary concerned may extend the 365-day period for any person for up
    to an additional 180 days if the Secretary determines

    [[Page 110 STAT. 2515]]

    that it is in the best interests of the armed force of which that person
    is a member to do so.''.
        (b) Technical Amendments.--Section 513(b) of such title, as amended
    by subsection (a), is further amended--
                (1) by inserting ``(1)'' after ``(b)'';
                (2) by designating the third sentence as paragraph
            (2); and
                (3) in paragraph (2), as so designated, by striking out
            ``the preceding sentence'' and inserting in lieu thereof
            ``paragraph (1)''.

                        Subtitle C--Activation and Recall

    SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE DUTY.

        (a) Revision and Recodification of Authorities Relating to Retired
    Members Ordered to Active Duty.--Chapter 39 of title 10, United States
    Code, is amended by striking out section 688 and inserting in lieu
    thereof the following:
     ``Sec. 688. Retired members: authority to order to active duty;
                      duties

        ``(a) <<NOTE: Regulations.>>  Authority.--Under regulations
    prescribed by the Secretary of Defense, a member described in subsection
    (b) may be ordered to active duty by the Secretary of the military
    department concerned at any time.

        ``(b) Covered Members.--Except as provided in subsection (d),
    subsection (a) applies to the following members of the armed forces:
                ``(1) A retired member of the Regular Army, Regular Navy,
            Regular Air Force, or Regular Marine Corps.
                ``(2) A member of the Retired Reserve who was retired under
            section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.
                ``(3) A member of the Fleet Reserve or Fleet Marine Corps
            Reserve.

        ``(c) Duties of Member Ordered to Active Duty.--The Secretary
    concerned may, to the extent consistent with other provisions of law,
    assign a member ordered to active duty under this section to such duties
    as the Secretary considers necessary in the interests of national
    defense.
        ``(d) Exclusion of Officers Retired on Selective Early Retirement
    Basis.--The following officers may not be ordered to active duty under
    this section:
                ``(1) An officer who retired under section 638 of this
            title.
                ``(2) An officer who--
                        ``(A) after having been notified that the officer
                    was to be considered for early retirement under section
    638 of this title by a board convened under section 611(b) of this title
    and before being considered by that board, requested retirement under
    section 3911, 6323, or 8911 of this title; and
                        ``(B) was retired pursuant to that request.

        ``(e) Limitation of Period of Recall Service.--A member ordered to
    active duty under subsection (a) may not serve on active duty pursuant
    to orders under that subsection for more than 12

    [[Page 110 STAT. 2516]]

    months within the 24 months following the first day of the active duty
    to which ordered under that subsection.
        ``(f) Waiver for Periods of War or National Emergency.--Subsections
    (d) and (e) do not apply in time of war or of national emergency
    declared by Congress or the President.
     ``Sec. 689. Retired members: grade in which ordered to active
                      duty and upon release from active duty

        ``(a) General Rule for Grade in Which Ordered to Active Duty.--
    Except as provided in subsections (b) and (c), a retired member ordered
    to active duty under section 688 of this title shall be ordered to
    active duty in the member's retired grade.
        ``(b) Members Retired in O-9 and O-10 Grades.--A retired member
    ordered to active duty under section 688 of this title whose retired
    grade is above the grade of major general or rear admiral shall be
    ordered to active duty in the highest permanent grade held by such
    member while serving on active duty.
        ``(c) Members Who Previously Served in Grade Higher Than Retired
    Grade.--(1) A retired member ordered to active duty under section 688 of
    this title who has previously served on active duty satisfactorily, as
    determined by the Secretary of the military department concerned, in a
    grade higher than that member's retired grade may be ordered to active
    duty in the highest grade in which the member had so served
    satisfactorily, except that such a member may not be so ordered to
    active duty in a grade above major general or rear admiral.
        ``(2) A retired member ordered to active duty in a grade that is
    higher than the member's retired grade pursuant to subsection (a) shall
    be treated for purposes of section 690 of this title as if the member
    was promoted to that higher grade while on that tour of active duty.
        ``(3) If, upon being released from that tour of active duty, such a
    retired member has served on active duty satisfactorily, as determined
    by the Secretary concerned, for not less than a total of 36 months in a
    grade that is a higher grade than the member's retired grade, the member
    is entitled to placement on the retired list in that grade.
        ``(d) Grade Upon Release From Active Duty.--A member ordered to
    active duty under section 688 of this title who, while on active duty,
    is promoted to a grade that is higher than that member's retired grade
    is entitled, upon that member's release from that tour of active duty,
    to placement on the retired list in the highest grade in which the
    member served on active duty satisfactorily, as determined by the
    Secretary of the military department concerned, for not less than six
    months.
     ``Sec. 690. Retired members ordered to active duty: limitation on
                      number

        ``(a) General and Flag Officers.--Not more than 15 retired general
    officers of the Army, Air Force, or Marine Corps, and not more than 15
    retired flag officers of the Navy, may be on active duty at any one
    time. For the purposes of this subsection a retired officer ordered to
    active duty for a period of 60 days or less is not counted.
        ``(b) Limitation by Service.--(1) Not more than 25 officers of any
    one armed force may be serving on active duty concurrently

    [[Page 110 STAT. 2517]]

    pursuant to orders to active duty issued under section 688 of this
    title.
        ``(2) In the administration of paragraph (1), the following officers
    shall not be counted:
                ``(A) A chaplain who is assigned to duty as a chaplain for
            the period of active duty to which ordered.
                ``(B) A health care professional (as characterized by the
            Secretary concerned) who is assigned to duty as a health care
            professional for the period of the active duty to which ordered.
                ``(C) Any officer assigned to duty with the American Battle
            Monuments Commission for the period of active duty to which
            ordered.

        ``(c) Waiver for Periods of War or National Emergency.--Subsection
    (a) does not apply in time of war or of national emergency declared by
    Congress or the President after November 30, 1980. Subsection (b) does
    not apply in time of war or of national emergency declared by Congress
    or the President.''.
        (b) <<NOTE: 10 USC 688 note.>>  Effective Date.--The amendments made
    by this section shall take effect on September 30, 1997.

        (c) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by striking out the item relating to section 688
    and inserting in lieu thereof the following:
    ``688. Retired members: authority to order to active duty; duties.
    ``689. Retired members: grade in which ordered to active duty and upon
              release from active duty.
    ``690. Retired members ordered to active duty: limitation on number.''.

        (d) Cross Reference Amendment.--Section 6151(a) of title 10, United
    States Code, is amended by striking out ``688'' and inserting in lieu
    thereof ``689''.

    SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

        Section 101(d)(4) of title 10, United States Code, is amended by
    striking out ``a reserve commissioned officer, other than a commissioned
    warrant officer,'' and inserting in lieu thereof the following: ``a
    member of a reserve component''.
    SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF
                            MEMBERS OF NATIONAL GUARD CALLED INTO
                            FEDERAL SERVICE.

        Section 12408(a) of title 10, United States Code, is amended by
    inserting ``under section 12301(a), 12302, or 12304 of this title''
    after ``called into Federal service''.

                    Subtitle D--Reserve Component Retirement

    SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY
                            TRAINING CREDITABLE TOWARD RESERVE
                            RETIREMENT.

        (a) Increase in Limit.--Section 12733(3) is amended by inserting
    before the period at the end the following: ``of service before the year
    of service in which the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 1997 occurs and not more than 75 days
    in any subsequent year of service''.
        (b) <<NOTE: 10 USC 12732 note.>>  Tracking System for Award of
    Retirement Points.--To better enable the Secretary of Defense and
    Congress to assess

    [[Page 110 STAT. 2518]]

    the cost and the effect on readiness of the amendment made by subsection
    (a) and of other potential changes to the Reserve retirement system
    under chapter 1223 of title 10, United States Code, the Secretary of
    Defense shall require the Secretary of each military department to
    implement a system to monitor the award of retirement points for
    purposes of that chapter by categories in accordance with the
    recommendation set forth in the August 1988 report of the Sixth
    Quadrennial Review of Military Compensation.

        (c) <<NOTE: 10 USC 12732 note.>> Recommendations to Congress.--The
    Secretary shall submit to Congress, not later than one year after the
    date of the enactment of this Act, the recommendations of the Secretary
    with regard to the adoption of the following Reserve retirement
    initiatives recommended in the August 1988 report of the Sixth
    Quadrennial Review of Military Compensation:
                (1) Elimination of membership points under subparagraph (C)
            of section 12732(a)(2) of title 10, United States Code, in
            conjunction with a decrease from 50 to 35 in the number of
            points required for a satisfactory year under that section.
                (2) Limitation to 60 in any year on the number of points
            that may be credited under subparagraph (B) of section
            12732(a)(2) of such title at two points per day.
                (3) Limitation to 360 in any year on the total
            number of retirement points countable for purposes of section
            12733 of such title.
    SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO
                            QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER
                            ADMINISTRATIVE REDUCTION IN ENLISTED
                            GRADE.

        (a) Army.--(1) Chapter 369 of title 10, United States Code, is
    amended by inserting after section 3962 the following new section:
     ``Sec. 3963. Highest grade held satisfactorily: Reserve enlisted
                        members reduced in grade not as a result of
                        the member's misconduct

        ``(a) A Reserve enlisted member of the Army described in subsection
    (b) who is retired under section 3914 of this title shall be retired in
    the highest enlisted grade in which the member served on active duty
    satisfactorily (or, in the case of a member of the National Guard, in
    which the member served on full-time National Guard duty
    satisfactorily), as determined by the Secretary of the Army.
        ``(b) <<NOTE: Applicability.>> This section applies to a Reserve
    enlisted member who--
                ``(1) at the time of retirement is serving on active duty
            (or, in the case of a member of the National Guard, on full-time
            National Guard duty) in a grade lower than the highest enlisted
            grade held by the member while on active duty (or full-time
            National Guard duty); and
                ``(2) was previously administratively reduced in grade not
            as a result of the member's own misconduct, as determined by the
            Secretary of the Army.

        ``(c) <<NOTE: Applicability.>>  This section applies with respect to
    Reserve enlisted members who are retired under section 3914 of this
    title after September 30, 1996.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 3962 the
    following new item:

    [[Page 110 STAT. 2519]]

    ``3963. Highest grade held satisfactorily: Reserve enlisted members
                reduced in grade not as a result of the member's
                misconduct.''.

        (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, United
    States Code, is amended by adding at the end the following new section:
     ``Sec. 6336. Highest grade held satisfactorily: Reserve enlisted
                        members reduced in grade not as a result of
                        the member's misconduct

        ``(a) A member of the Naval Reserve or Marine Corps Reserve
    described in subsection (b) who is transferred to the Fleet Reserve or
    the Fleet Marine Corps Reserve under section 6330 of this title shall be
    transferred in the highest enlisted grade in which the member served on
    active duty satisfactorily, as determined by the Secretary of the Navy.
        ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve
    enlisted member who--
                ``(1) at the time of transfer to the Fleet Reserve or Fleet
            Marine Corps Reserve is serving on active duty in a grade lower
            than the highest enlisted grade held by the member while on
            active duty; and
                ``(2) was previously administratively reduced in grade not
            as a result of the member's own misconduct, as determined by the
            Secretary of the Navy.

        ``(c) <<NOTE: Applicability.>>  This section applies with respect to
    enlisted members of the Naval Reserve and Marine Corps Reserve who are
    transferred to the Fleet Reserve or the Fleet Marine Corps Reserve after
    September 30, 1996.''.

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

    ``6336. Highest grade held satisfactorily: Reserve enlisted members
                reduced in grade not as a result of the member's
                misconduct.''.

        (c) Air Force.--(1) Chapter 869 of title 10, United States Code, is
    amended by inserting after section 8962 the following new section:
    ``Sec. 8963. Highest grade held satisfactorily: Reserve enlisted
                        members reduced in grade not as a result of
                        the member's misconduct

        ``(a) A Reserve enlisted member of the Air Force described in
    subsection (b) who is retired under section 8914 of this title shall be
    retired in the highest enlisted grade in which the member served on
    active duty satisfactorily (or, in the case of a member of the National
    Guard, in which the member served on full-time National Guard duty
    satisfactorily), as determined by the Secretary of the Air Force.
        ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve
    enlisted member who--
                ``(1) at the time of retirement is serving on active duty
            (or, in the case of a member of the National Guard, on full-time
            National Guard duty) in a grade lower than the highest enlisted
            grade held by the member while on active duty (or full-time
            National Guard duty); and
                ``(2) was previously administratively reduced in grade not
            as a result of the member's own misconduct, as determined by the
            Secretary of the Air Force.

        ``(c) <<NOTE: Applicability.>>  This section applies with respect to
    Reserve enlisted members who are retired under section 8914 of this
    title after September 30, 1996.''.

    [[Page 110 STAT. 2520]]

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 8962 the
    following new item:

    ``8963. Highest grade held satisfactorily: Reserve enlisted members
                reduced in grade not as a result of the member's
                misconduct.''.

        (d) Computation of Retired and Retainer Pay Based Upon Retired
    Grade.--(1) Section 3991 of such title is amended by adding at the end
    the following new subsection:
        ``(c) Special Rule for Retired Reserve Enlisted Members Covered by
    Section 3963.--In the case of a Reserve enlisted member retired under
    section 3914 of this title whose retired grade is determined under
    section 3963 of this title and who first became a member of a uniformed
    service before September 8, 1980, the retired pay base of the member
    (notwithstanding section 1406(a)(1) of this title) is the amount of the
    monthly basic pay of the member's retired grade (determined based upon
    the rates of basic pay applicable on the date of the member's
    retirement), and that amount shall be used for the purposes of
    subsection (a)(1)(A) rather than the amount computed under section
    1406(c) of this title.''.
        (2) Section 6333 of such title is amended by adding at the end the
    following new subsection:
        ``(c) In the case of a Reserve enlisted member whose grade upon
    transfer to the Fleet Reserve or Fleet Marine Corps Reserve is
    determined under section 6336 of this title and who first became a
    member of a uniformed service before September 8, 1980, the retainer pay
    base of the member (notwithstanding section 1406(a)(1) of this title) is
    the amount of the monthly basic pay of the grade in which the member is
    so transferred (determined based upon the rates of basic pay applicable
    on the date of the member's transfer), and that amount shall be used for
    the purposes of the table in subsection (a) rather than the amount
    computed under section 1406(d) of this title.''.

        (3) Section 8991 of such title is amended by adding at the end the
    following new subsection:
        ``(c) Special Rule for Retired Reserve Enlisted Members Covered by
    Section 8963.--In the case of a Reserve enlisted member retired under
    section 8914 of this title whose retired grade is determined under
    section 8963 of this title and who first became a member of a uniformed
    service before September 8, 1980, the retired pay base of the member
    (notwithstanding section 1406(a)(1) of this title) is the amount of the
    monthly basic pay of the member's retired grade (determined based upon
    the rates of basic pay applicable on the date of the member's
    retirement), and that amount shall be used for the purposes of
    subsection (a)(1)(A) rather than the amount computed under section
    1406(e) of this title.''.
    SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE
                            RETIREMENT SANCTUARY.

        Section 12686 of title 10, United States Code, is amended--
                (1) by inserting ``(a) Limitation.--'' before ``Under
            regulations''; and
                (2) by adding at the end the following:

        ``(b) Waiver.--With respect to a member of a reserve component who
    is to be ordered to active duty (other than for training) under section
    12301 of this title pursuant to an order to active duty that specifies a
    period of less than 180 days and who (but for this subsection) would be
    covered by subsection (a), the Secretary

    [[Page 110 STAT. 2521]]

    concerned may require, as a condition of such order to active duty, that
    the member waive the applicability of subsection (a) to the member for
    the period of active duty covered by that order. In carrying out this
    subsection, the Secretary concerned may require that a waiver under the
    preceding sentence be executed before the period of active duty
    begins.''.

    SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

        Paragraph (2) of section 1204 of title 10, United States Code, is
    amended to read as follows:
                ``(2) the disability is the proximate result of, or was
            incurred in line of duty after the date of the enactment of this
            Act as a result of--
                        ``(A) performing active duty or inactive-duty
                    training;
                        ``(B) traveling directly to or from the place at
                    which such duty is performed; or
                        ``(C) an injury, illness, or disease incurred or
                    aggravated while remaining overnight, between successive
                    periods of inactive-duty training, at or in the vicinity
                    of the site of the inactive duty training, if the site
                    is outside reasonable commuting distance of the member's
                    residence;''.

                   Subtitle E--Other Reserve Component Matters

    SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE
                            RESERVES.

        Subsection (b) of section 12310 of title 10, United States Code, is
    amended to read as follows:
        ``(b) A Reserve on active duty as described in subsection (a) may be
    provided training consistent with training provided to other members on
    active duty, as the Secretary concerned sees fit.''.

    SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE MOBILIZATION
                INCOME INSURANCE PROGRAM.

        Section 12524 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(g) <<NOTE: Regulations.>>  Members of Individual Ready Reserve.--
    Notwithstanding any other provision of this section, and pursuant to
    regulations issued by the Secretary, a member of the Individual Ready
    Reserve who becomes a member of the Selected Reserve shall not be denied
    eligibility to purchase insurance under this chapter upon becoming a
    member of the Selected Reserve unless the member previously declined to
    enroll in the program of insurance under this chapter while a member of
    the Selected Reserve.''.
    SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS
                            SCHOLARSHIP AND FINANCIAL ASSISTANCE
                            PROGRAM.

        (a) Credit Authorized.--Section 2126 of title 10, United States
    Code, is amended--
                (1) by striking out ``Service performed'' and inserting in
            lieu thereof ``(a) Service Not Creditable.--Except as provided
            in subsection (b), service performed''; and
                (2) by adding at the end the following:

    [[Page 110 STAT. 2522]]

        ``(b) Service Creditable for Certain Purposes.--(1) The Secretary
    concerned may authorize service performed by a member of the program in
    pursuit of a course of study under this subchapter to be counted in
    accordance with this subsection if the member--
                ``(A) completes the course of study;
                ``(B) completes the active duty obligation imposed under
            section 2123(a) of this title; and
                ``(C) possesses a specialty designated by the Secretary
            concerned as critically needed in wartime.

        ``(2) Service credited under paragraph (1) counts only for the
    following purposes:
                ``(A) Award of retirement points for computation of
            years of service under section 12732 of this title and for
            computation of retired pay under section 12733 of this title.
                ``(B) Computation of years of service creditable under
            section 205 of title 37.

        ``(3) For purposes of paragraph (2)(A), a member may be credited in
    accordance with paragraph (1) with not more than 50 points for each year
    of participation in a course of study that the member satisfactorily
    completes as a member of the program.
        ``(4) Service may not be counted under paragraph (1) for more than
    four years of participation in a course of study as a member of the
    program.
        ``(5) A member is not entitled to any retroactive award of, or
    increase in, pay or allowances under title 37 by reason of an award of
    service credit under paragraph (1).''.
        (b) Award of Retirement Points.--(1) Section 12732(a)(2) of such
    title is amended--
                (A) by inserting after clause (C) the following:
                        ``(D) Points credited for the year under section
                    2126(b) of this title.''; and
                (B) in the matter following clause (D), as inserted by
            paragraph (1), by striking out ``and (C)'' and inserting in lieu
            thereof ``(C), and (D)''.

        (2) Section 12733(3) of such title is amended by striking out ``or
    (C)'' and inserting in lieu thereof ``(C), or (D)''.
    SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT
                            PROVISIONS.

        (a) Service Requirement for Retirement in Highest Grade Held.--
    Section 1370(d) of title 10, United States Code, is
    amended--
                (1) by redesignating paragraph (3) as paragraph (4);
                (2) in paragraph (2)(A), by striking out ``(A)'';
                (3) by redesignating paragraph (2)(B) as paragraph
            (3); and
                (4) in paragraph (3), as so redesignated--
                        (A) by designating the first sentence as subpara-
                    graph (A);
                        (B) by designating the second sentence as
                    subparagraph (B);
                        (C) in subparagraph (B), as so redesignated, by
                    striking out ``the preceding sentence'' and inserting in
                    lieu thereof ``subparagraph (A)''; and
                        (D) by adding at the end the following:

        ``(C) If a person covered by subparagraph (A) has completed at least
    six months of satisfactory service in grade, the person

    [[Page 110 STAT. 2523]]

    was serving in that grade while serving in a position of adjutant
    general required under section 314 of title 32 or while serving in a
    position of assistant adjutant general subordinate to such a position of
    adjutant general, and the person has failed to complete three years of
    service in that grade solely because the person's appointment to such
    position has been terminated or vacated as described in section 324(b)
    of such title, then such person may be credited with satisfactory
    service in that grade, notwithstanding the failure to complete three
    years of service in that grade.
        ``(D) To the extent authorized by the Secretary of the military
    department concerned, a person who, after having been recommended for
    promotion in a report of a promotion board but before being promoted to
    the recommended grade, served in a position for which that grade is the
    minimum authorized grade may be credited for purposes of subparagraph
    (A) as having served in that grade for the period for which the person
    served in that position while in the next lower grade. The period
    credited may not include any period before the date on which the Senate
    provides advice and consent for the appointment of that person in the
    recommended grade.

        ``(E) To the extent authorized by the Secretary of the military
    department concerned, a person who, after having been extended temporary
    Federal recognition as a reserve officer of the Army National Guard in a
    particular grade under section 308 of title 32 or temporary Federal
    recognition as a reserve officer of the Air National Guard in a
    particular grade under such section, served in a position for which that
    grade is the minimum authorized grade may be credited for purposes of
    subparagraph (A) as having served in that grade for the period for which
    the person served in that position while extended the temporary Federal
    recognition, but only if the person was subsequently extended permanent
    Federal recognition as a reserve officer in that grade and also served
    in that position after being extended the permanent Federal
    recognition.''.
        (b) Exception to Requirement for Retention of Reserve Officers Until
    Completion of Required Service.--Section 12645(b)(2) of such title is
    amended by inserting ``or a reserve active-status list'' after ``active-
    duty list''.
        (c) Technical Correction.--Section 14314(b)(2)(B) of such title is
    amended by striking out ``of the Air Force''.
    SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT SUPPORT
                            OF RESERVES PILOT PROGRAM.

        (a) Report on Number of Active Component Advisers.--Not later than
    six months after the date of the enactment of this Act, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report setting forth the Secretary's determination as to the appropriate
    number of active component personnel to be assigned to serve as advisers
    to reserve components under section 414 of the National Defense
    Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note).
    If the Secretary's determination is that such number should be a number
    other than the required minimum number in effect under subsection (c) of
    such section, the Secretary shall include in the report an explanation
    providing the Secretary's justification for the number recommended.

    [[Page 110 STAT. 2524]]

        (b) Technical Amendment.--Section 414(a) of the National Defense
    Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note)
    is amended by striking out ``During fiscal years 1992 and 1993, the
    Secretary of the Army shall institute'' and inserting in lieu thereof
    ``The Secretary of the Army shall carry out''.
    SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT
                            RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED
                            IN FOREIGN COUNTRIES.

        (a) Sense of Congress.--Congress is concerned about the lack of
    reemployment rights afforded Reserve component members who reside in
    foreign countries and either work for United States companies that
    maintain offices or operations in foreign countries or work for foreign
    employers. Being outside the jurisdiction of the United States, these
    employers are not subject to the provisions of chapter 43 of title 38,
    United States Code, known as the Uniformed Services Employment and
    Reemployment Rights Act (USERRA). The purpose of that Act is to provide
    statutory employment protections that include reinstatement, seniority,
    status, and rate of pay coverage for Reservists who are ordered to
    active duty for a specified period of time, including involuntary active
    duty in support of an operational contingency. While most Reserve
    members are afforded the protections of that Act (which covers
    reemployment rights in their civilian jobs upon completion of military
    service), approximately 2,000 members of the Selected Reserve reside
    outside the United States and its territories and, not being guaranteed
    the job protection envisioned by the USERRA, are potentially subject to
    reemployment problems after release from active duty. This situation
    poses a continuing personnel management challenge for the reserve
    components.
        (b) Recognition of Problem.--Congress, while recognizing that
    foreign governments and companies located abroad, not being within the
    jurisdiction of the United States, cannot be required to comply with the
    provisions of the Uniformed Services Employment and Reemployment Rights
    Act, also recognizes that there is a need to provide assistance to
    Reservists in the situation described in subsection (a), both in the
    near term and the long term.
        (c) Report Requirement.--Not later than April 1, 1997, the Secretary
    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report that sets forth recommended actions to help alleviate
    reemployment problems for Reservists who are employed outside the United
    States and its territories by United States companies that maintain
    offices or operations in foreign countries or by foreign employers. The
    report shall include recommendations on the assistance and support that
    may be required by other organizations of the Government, including the
    Defense Attache Offices, the Department of Labor, and the Department of
    State. The report shall be prepared in consultation with the Secretary
    of State and the Secretary of Labor.
    SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME INSURANCE
                            PROGRAM.

        Section 12527(a) of title 10, United States Code, is amended--
                (1) in paragraph (1), by inserting ``of the Selected
            Reserve'' after ``a member''; and

    [[Page 110 STAT. 2525]]

                (2) by striking out paragraph (2) and inserting in lieu
            thereof the following:

        ``(2) <<NOTE: Regulations.>>  The Secretary of Defense, in
    consultation with the Secretary of Transportation, shall prescribe
    regulations which specify the procedures for payment of premiums by
    members of the Individual Ready Reserve and other members who do not
    receive pay on a monthly basis.''.

                     Subtitle F--Officer Education Programs

    SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFICERS'
                            TRAINING CORPS PROGRAM.

        (a) Enrollment Priority To Be Consistent With Purpose of Program.--
    (1) Section 2103 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(e) An educational institution at which a unit of the program has
    been established shall give priority for enrollment in the program to
    students who are eligible for advanced training under section 2104 of
    this title.''.
        (2) Section 2109 of such title is amended by adding at the end the
    following new subsection:
        ``(c)(1) A person who is not qualified for, and (as determined by
    the Secretary concerned) will not be able to become qualified for,
    advanced training by reason of one or more of the requirements
    prescribed in paragraphs (1) through (3) of section 2104(b) of this
    title shall not be permitted to participate in--
                ``(A) field training or a practice cruise under section
            2106(b)(6) of this title; or
                ``(B) practical military training under subsection (a).

        ``(2) The Secretary of the military department concerned may waive
    the limitation in paragraph (1) under procedures prescribed by the
    Secretary. Such procedures shall ensure uniform application of
    limitations and restrictions without regard to the reason for
    disqualification for advanced training.''.
        (b) Wear of the Military Uniform.--Section 772(h) of such title is
    amended by inserting before the period at the end the following: ``if
    the wear of such uniform is specifically authorized under regulations
    prescribed by the Secretary of the military department concerned''.
    SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND
                            OR TERMINATION OF SENIOR ROTC UNITS
                            PENDING REPORT ON ROTC.

        (a) <<NOTE: Reports.>>  Prohibition.--(1) The Secretary of the Army
    may not reorganize or restructure the Reserve Officers Training Corps
    Cadet Command, and may not terminate any Senior Reserve Officer Training
    Corps unit identified in the document referred to in paragraph (2),
    until 180 days after the date on which the Secretary submits to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives the report described in
    subsection (b).

        (2) The document referred to in paragraph (1) is the Department of
    Defense document dated May 20, 1996, entitled ``Information for Members
    of Congress concerning Senior Reserve Officer Training Corps (ROTC) Unit
    Closures''.

    [[Page 110 STAT. 2526]]

        (b) Report Contents.--The report referred to in subsection (a) is a
    report by the Secretary of the Army in which the Secretary--
                (1) describes the selection process used to identify the
            Reserve Officer Training Corps units of the Army to be
            terminated;
                (2) lists the criteria used by the Army to select Reserve
            Officer Training Corps units for termination;
                (3) sets forth the specific ranking of each unit of the
            Reserve Officer Training Corps of the Army to be terminated as
            against all other such units;
                (4) sets forth the authorized and actual cadre staffing of
            each such unit for each fiscal year of the 10-fiscal year period
            ending with fiscal year 1996;
                (5) sets forth the production goals and performance
            evaluations of each such unit for each fiscal year of the 10-
            fiscal year period ending with fiscal year 1996;
                (6) describes how cadets currently enrolled in the units
            referred to in paragraph (5) will be accommodated after the
            closure of such units;
                (7) describes the incentives to enhance the Reserve Officer
            Training Corps program that are provided by each of the colleges
            on the closure list;
                (8) includes the projected officer accession plan by source
            of commission for the active-duty Army, the Army Reserve, and
            the Army National Guard; and
                (9) describes whether the closure of any ROTC unit will
            adversely affect the recruitment of minority officer candidates.
    SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO
                            INCLUDE GRADUATE STUDENTS.

        (a) Test Program.--Section 2107(c) of title 10, United States Code,
    is amended--
                (1) by inserting ``(1)'' after ``(c)''; and
                (2) by adding at the end the following:

        ``(2) The Secretary of Defense shall authorize the Secretaries of
    the military departments to carry out a test program to determine the
    desirability of enabling graduate students to participate in the
    financial assistance program under this section. As part of such test
    program, the Secretary of a military department may provide financial
    assistance, as described in paragraph (1), to a student enrolled in an
    advanced education program beyond the baccalaureate degree level if the
    student also is a cadet or midshipman in an advanced training program.
    Not more than 15 percent of the total number of scholarships awarded
    under this section in any year may be awarded under the test program. No
    scholarship may be awarded under the test program after September 30,
    1999.''.
        (b) Authority To Enroll in Advanced Training Program.--Paragraph (3)
    of section 2101 of title 10, United States Code, is amended by inserting
    ``students enrolled in an advanced education program beyond the
    baccalaureate degree level or to'' after `instruction offered in the
    Senior Reserve Officers' Training Corps to''.
        (c) <<NOTE: 10 USC 2107 note.>>  Report to Congress.--Not later than
    December 31, 1998, the Secretary of Defense shall submit to Congress a
    report on the experience to that date under the test program authorized
    under the amendment made by subsection (a)(2). The report shall include
    the Secretary's assessment of the effect of the test program

    [[Page 110 STAT. 2527]]

    on the Senior ROTC program and the Secretary's recommendation as to
    whether the authority under the test program should be made permanent.
    SEC. 554. <<NOTE: 10 USC 2111 note.>>  DEMONSTRATION PROJECT FOR
                            INSTRUCTION AND SUPPORT OF ARMY ROTC UNITS
                            BY MEMBERS OF THE ARMY RESERVE AND
                            NATIONAL GUARD.

        (a) Demonstration Project Required.--The Secretary of the Army shall
    carry out a demonstration project in order to assess the feasibility and
    advisability of providing instruction and similar support to units of
    the Senior Reserve Officers' Training Corps of the Army through members
    of the Army Reserve (including members of the Individual Ready Reserve)
    and members of the Army National Guard.

        (b) Project Requirements.--(1) The Secretary shall carry out the
    demonstration project at at least one institution of higher education.
        (2) In order to enhance the value of the project, the Secretary may
    take actions to ensure that members of the Army Reserve and the Army
    National Guard provide instruction and support under the project in a
    variety of innovative ways.
        (c) Inapplicability of Limitation on Reserves in Support of ROTC.--
    The assignment of a member of the Army Reserve or the Army National
    Guard to provide instruction or support under the demonstration project
    shall not be treated as an assignment of the member to duty with a unit
    of a Reserve Officer Training Corps program for purposes of section
    12321 of title 10, United States Code.
        (d) Reports to Congress.--Not later than February 1 in each of 1998
    and 1999, the Secretary shall submit to Congress a report assessing the
    activities under the demonstration project during the preceding year.
    The report submitted in 1999 shall include the Secretary's
    recommendation as to the advisability of continuing or expanding the
    authority for the project.
        (e) Termination.--The authority of the Secretary to carry out the
    demonstration project shall expire three years after the date of the
    enactment of this Act.
    SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET OR
                            MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS'
                            TRAINING CORPS AND THE SERVICE ACADEMIES.

        (a) Senior Reserve Officers' Training Corps.--Sections 2107(a) and
    2107a(a) of title 10, United States Code, are amended--
                (1) by striking out ``25 years of age'' and inserting in
            lieu thereof ``27 years of age''; and
                (2) by striking out ``29 years of age'' and inserting in
            lieu thereof ``30 years of age''.

        (b) United States Military Academy.--Section 4346(a) of such title
    is amended by striking out ``twenty-second birthday'' and inserting in
    lieu thereof ``twenty-third birthday''.
        (c) United States Naval Academy.--Section 6958(a)(1) of such title
    is amended by striking out ``twenty-second birthday'' and inserting in
    lieu thereof ``twenty-third birthday''.
        (d) United States Air Force Academy.--Section 9346(a) of such title
    is amended by striking out ``twenty-second birthday'' and inserting in
    lieu thereof ``twenty-third birthday''.

    [[Page 110 STAT. 2528]]

    SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO
                            INCLUDE CERTAIN RESERVE OFFICERS' TRAINING
                            CORPS (ROTC) PARTICIPANTS.

        (a) Active Duty Service.--Section 3011(c) of title 38, United States
    Code, is amended--
                (1) by striking out ``or upon completion of a program of
            educational assistance under section 2107 of title 10'' in
            paragraph (2); and
                (2) by adding at the end the following:

        ``(3) An individual who after December 31, 1976, receives a
    commission as an officer in the Armed Forces upon completion of a
    program of educational assistance under section 2107 of title 10 is not
    eligible for educational assistance under this section if the individual
    enters on active duty--
                ``(A) before October 1, 1996; or
                ``(B) after September 30, 1996, and while participating in
            such program received more than $2,000 for each year of such
            participation.''.

        (b) Selected Reserve.--Section 3012(d) of title 38, United States
    Code, is amended--
                (1) by striking out ``or upon completion of a program of
            educational assistance under section 2107 of title 10'' in
            paragraph (2); and
                (2) by adding at the end the following:

        ``(3) An individual who after December 31, 1976, receives a
    commission as an officer in the Armed Forces upon completion of a
    program of educational assistance under section 2107 of title 10 is not
    eligible for educational assistance under this section if the individual
    enters on active duty--
                ``(A) before October 1, 1996; or
                ``(B) after September 30, 1996, and while participating in
            such program received more than $2,000 for each year of such
            participation.''.
    SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY
                            IMPLICATIONS OF PERMITTING UP TO FIVE
                            PERCENT OF SERVICE ACADEMY GRADUATES TO BE
                            ASSIGNED DIRECTLY TO RESERVE DUTY UPON
                            GRADUATION.

        (a) Report Required.--The Comptroller General of the United States
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    providing an analysis of the cost implications, and the policy
    implications, of permitting up to five percent of each graduating class
    of each of the service academies to be placed, upon graduation and
    commissioning, in an active status in the appropriate reserve component
    (without a minimum period of obligated active duty service), with a
    corresponding increase in the number of ROTC graduates each year who are
    permitted to serve on active duty upon commissioning.

        (b) Information on Current Academy Graduates in Reserve
    Components.--The Comptroller General shall include in the report
    information (shown in the aggregate and separately for each of the Armed
    Forces and for graduates of each service academy) on--
                (1) the number of academy graduates who at the time of the
            report are serving in an active status in a reserve component;
            and

    [[Page 110 STAT. 2529]]

                (2) within the number under paragraph (1), the number for
            each reserve component and, of those, the number within each
            reserve component who are on active duty under section 12301(d)
            of title 10, United States Code, for the purpose of organizing,
            administering, recruiting, instructing, or training the reserve
            components.

        (c) Submission of Report.--The report shall be submitted not later
    than six months after the date of the enactment of this Act.
        (d) Service Academies.--For purposes of this section, the term
    ``service academies'' means--
                (1) the United States Military Academy;
                (2) the United States Naval Academy; and
                (3) the United States Air Force Academy.

                       Subtitle G--Decorations and Awards

    SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN AFRICAN
                            AMERICAN SOLDIERS WHO SERVED DURING WORLD
                            WAR II.

        (a) Inapplicability of Time Limitations.--Notwithstanding the time
    limitations in section 3744(b) of title 10, United States Code, or any
    other time limitation, the President may award the Medal of Honor to the
    persons specified in subsection (b), each of whom has been found by the
    Secretary of the Army to have distinguished himself conspicuously by
    gallantry and intrepidity at the risk of his life above and beyond the
    call of duty while serving in the United States Army during World War
    II.
        (b) Persons Eligible To Receive the Medal of Honor.--The persons
    referred to in subsection (a) are the following:
                (1) <<NOTE: Vernon J. Baker.>>  Vernon J. Baker, who served
            as a first lieutenant in the 370th Infantry Regiment, 92nd
            Infantry Division.
                (2) <<NOTE: Edward A. Carter.>>  Edward A. Carter, who
            served as a staff sergeant in the 56th Armored Infantry
            Battalion, Twelfth Armored
            Division.
                (3) <<NOTE: John R. Fox.>>  John R. Fox, who served as a
            first lieutenant in the 366th Infantry Regiment, 92nd Infantry
            Division.
                (4) <<NOTE: Willy F. James, Jr.>>  Willy F. James, Jr., who
            served as a private first class in the 413th Infantry Regiment,
            104th Infantry Division.
                (5) <<NOTE: Ruben Rivers.>>  Ruben Rivers, who served as a
            staff sergeant in the 761st Tank Battalion.
                (6) <<NOTE: Charles L. Thomas.>>  Charles L. Thomas, who
            served as a first lieutenant in the 614th Tank Destroyer
            Battalion.
                (7) <<NOTE: George Watson.>>  George Watson, who served as a
            private in the 29th Quartermaster Regiment.

        (c) Posthumous Award.--The Medal of Honor may be awarded under this
    section posthumously, as provided in section 3752 of title 10, United
    States Code.
        (d) Prior Award.--The Medal of Honor may be awarded under this
    section for service for which a Distinguished-Service Cross, or other
    award, has been awarded.
    SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN
                            DECORATIONS TO SPECIFIED PERSONS.

        (a) Waiver of Time Limitation.--Any limitation established by law or
    policy for the time within which a recommendation

    [[Page 110 STAT. 2530]]

    for the award of a military decoration or award must be submitted shall
    not apply in the case of awards of decorations as described in
    subsection (b), the award of each such decoration having been determined
    by the Secretary of the Navy to be warranted in accordance with section
    1130 of title 10, United States Code.
        (b) Distinguished Flying Cross.--Subsection (a) applies to awards of
    the Distinguished Flying Cross for service during World War II as
    follows:
                (1) First award.--First award, for completion of at least 20
            qualifying combat missions, to the following members and former
            members of the Armed Forces:
                        Vernard V. Aiken of Wilmington, Vermont.
                        Ira V. Babcock of Dothan, Georgia.
                        George S. Barlow of Grafton, Virginia.
                        Earl A. Bratton of Bodega Bay, California.
                        Travis C. Cork of Leesburg, Florida.
                        Herman C. Edwards of Johns Island, South Carolina.
                        Norman J. Ehr of Kiel, Wisconsin.
                        James M. Fitzgerald of Anchorage, Alaska.
                        Raymond C. Gordon of Sherborn, Massachusetts.
                        Paul L. Hitchcock of Raleigh, North Carolina.
                        Harold H. Hottle of Hillsboro, Ohio.
                        Samuel M. Keith of Anderson, South Carolina.
                        Stanley J. Ksiadz of Cheektowaga, New York.
                        Otis Lancaster of Wyoming, Michigan.
                        Robert W. Lorette of Wilton, New Hampshire.
                        John B. McCabe of Biglerville, Pennsylvania.
                        James P. Merriman of Midland, Texas.
                        The late Michael L. Michalak, formerly of Akron,
                    New York.
                        The late Edward J. Naparkowsky, formerly of
                    Hartford, Connecticut.
                        Pete G. Nicora of Warren, Ohio.
                        Stanley J. Orlowski of Jackson, Michigan.
                        Raymond A. Peischl of Allentown, Pennsylvania.
                        A. Jerome Pfeiffer of Racine, Wisconsin.
                        Duane L. Rhodes of Earp, California.
                        Frank V. Roach of Bloomfield, New Jersey.
                        Arnold V. Rosekrans of Horseheads, New York.
                        Joseph E. Seaman, Jr. of Bordentown, New Jersey.
                        Richard F. Shumaker of Hilliard, Ohio.
                        Luther E. Thomas of Panama City, Florida.
                        Merton S. Ward of South Hamilton, Massachusetts.
                        Simon L. Webb of Magnolia, Mississippi.
                        Jerry W. Webster of Leander, Texas.
                (2) Second award.--Second award, for completion of at least
            40 qualifying combat missions, to the following members and
            former members of the Armed Forces:
                        Arthur C. Adair of Grants Pass, Oregon.
                        Robert B. Carnes of West Yarmouth, Massachusetts.
                        Daniel K. Connors of Hampton, New Hampshire.
                        Glen E. Danielson of Whittier, California.
                        Ralph J. Deceuster of Dover, Ohio.
                        Albert P. Emsley of Bothell, Washington.
                        Urbain J. Fournier of Houma, Louisiana.
                        Prescott C. Jernegan of Hemet, California.
                        Stephen K. Johnson of Englewood, Florida.

    [[Page 110 STAT. 2531]]

                        Warren E. Johnson of Vista, California.
                        Elbert J. Kimble of San Francisco, California.
                        George W. Knauff of Monument, Colorado.
                        John W. Lincoln of Rockland, Massachusetts.
                        Alan D. Marker of Sonoma, California.
                        Joseph J. Oliver of White Haven, Pennsylvania.
                        Shefield Phelps of Seattle, Washington.
                        John B. Tagliapiri of St. Helena, California.
                        Dewilles A.H.W. Schwartz of Watertown, South Dakota.
                        Ray B. Stiltner of Centralia, Washington.
                (3) Third award.--Third award, for completion of at least 60
            qualifying combat missions, to the following members and former
            members of the Armed Forces:
                        Glenn Bowers of Dillsburg, Pennsylvania.
                        Arthur C. Casey of Irving, California.
                        Robert J. Larsen of Gulf Breeze, Florida.
                        David Mendoza of McAllen, Texas.
                        William A. Nickerson of Portland, Oregon.
                        Maurice F. Smith of Sequim, Washington.
                (4) Fourth award.--Fourth award, for completion of at least
            80 qualifying combat missions, to the following members and
            former members of the Armed Forces:
                        Robert Bair of Ontario, California.
                        Arvid L. Kretz of Santa Rosa, California.
                        George E. McClane of Cocoa Beach, Florida.
                        Orville R. Swick of Issaquah, Washington.
                (5) Fifth award.--Fifth award, for completion of at least
            100 qualifying combat missions, to the following members and
            former members of the Armed Forces:
                        William A. Baldwin of San Clemente, California.
                        George Bobb of Blackwood, New Jersey.
                        John R. Conrad of Hot Springs, Arkansas.
                        Herbert R. Hetrick of Roaring Springs, Pennsylvania.
                        William L. Wells of Cordele, Georgia.
                (6) Sixth award.--Sixth award, for completion of at least
            120 qualifying combat missions, to Richard L. Murray of Dallas,
            Texas.
    SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN
                            RIBBONS.

        (a) Replacement Ribbons.--The Secretary of the Army, pursuant to
    section 3751 of title 10, United States Code, may replace any World War
    II decoration known as the American Theater Campaign Ribbon that was
    awarded to a person listed in the order described in subsection (b).
         (b) Ribbons Properly Awarded.--Any person listed in the document
    titled ``General Order Number 1'', issued by the Third Auxiliary
    Surgical Group, APO 647, United States Army, dated February 1, 1943,
    shall be considered to have been properly awarded the American Theater
    Campaign Ribbon for service during World War II.

    [[Page 110 STAT. 2532]]

                            Subtitle H--Other Matters

    SEC. 571. <<NOTE: 10 USC 113 note.>>  HATE CRIMES IN THE MILITARY.

        (a) Human Relations Training.--(1) The Secretary of Defense shall
    ensure that the Secretary of each military department conducts ongoing
    programs for human relations training for all members of the Armed
    Forces under the jurisdiction of the Secretary. Matters to be covered by
    such training include race relations, equal opportunity, opposition to
    gender discrimination, and sensitivity to ``hate group'' activity. Such
    training shall be provided during basic training (or other initial
    military training) and on a regular basis thereafter.
        (2) The Secretary of Defense shall also ensure that unit commanders
    are aware of their responsibilities in ensuring that impermissible
    activity based upon discriminatory motives does not occur in units under
    their command.
        (b) Information To Be Provided to Prospective Recruits.--The
    Secretary of Defense shall ensure that each individual preparing to
    enter an officer accession program or to execute an original enlistment
    agreement is provided information concerning the meaning of the oath of
    office or oath of enlistment for service in the Armed Forces in terms of
    the equal protection and civil liberties guarantees of the Constitution,
    and each such individual shall be informed that if supporting those
    guarantees is not possible personally for that individual, then that
    individual should decline to enter the Armed Forces.
        (c) Annual Survey.--(1) Section 451 of title 10, United States Code,
    is amended to read as follows:
    ``Sec. 451. Race relations, gender discrimination, and hate group
                      activity: annual survey and report

        ``(a) Annual Survey.--The Secretary of Defense shall carry out an
    annual survey to measure the state of racial, ethnic, and gender issues
    and discrimination among members of the Armed Forces serving on active
    duty and the extent (if any) of activity among such members that may be
    seen as so-called `hate group' activity. The survey shall solicit
    information on the
    race relations and gender relations climate in the Armed Forces,
    including--
                ``(1) indicators of positive and negative trends of
            relations among all racial and ethnic groups and between the
            sexes;
                ``(2) the effectiveness of Department of Defense policies
            designed to improve race, ethnic, and gender relations; and
                ``(3) the effectiveness of current processes for complaints
            on and investigations into racial, ethnic, and gender
            discrimination.

        ``(b) Implementing Entity.--The Secretary shall carry out each
    annual survey through the entity in the Department of Defense known as
    the Armed Forces Survey on Race/Ethnic Issues.
        ``(c) Reports to Congress.--Upon completion of each annual survey
    under subsection (a), the Secretary shall submit to Congress a report
    containing the results of the survey.''.
        (2) The item relating to such section in the table of sections at
    the beginning of chapter 22 of such title is amended to read as follows:

    ``451. Race relations, gender discrimination, and hate group activity:
              annual survey and report.''.

    [[Page 110 STAT. 2533]]

    SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS LEAVE FOR
                EDUCATIONAL OR EMERGENCY PURPOSES.

        (a) Eligibility for Retirement.--Section 1201 of title 10, United
    States Code, is amended--
                (1) by striking out the matter preceding paragraph (1) and
            inserting in lieu thereof the following:

        ``(a) Retirement.--Upon a determination by the Secretary concerned
    that a member described in subsection (c) is unfit to perform the duties
    of the member's office, grade, rank, or rating because of physical
    disability incurred while entitled to basic pay or while absent as
    described in subsection (c)(3), the Secretary may retire the member,
    with retired pay computed under section 1401 of this title, if the
    Secretary also makes the determinations with respect to the member and
    that disability specified in subsection (b).
        ``(b) Required Determinations of Disability.--Determinations
    referred to in subsection (a) are determinations by the Secretary that--
    ''; and
                (2) by adding at the end the following:

        ``(c) Eligible Members.--This section and sections 1202 and 1203 of
    this title apply to the following members:
                ``(1) A member of a regular component of the armed forces
            entitled to basic pay.
                ``(2) Any other member of the armed forces entitled to basic
            pay who has been called or ordered to active duty (other than
            for training under section 10148(a) of this title) for a period
            of more than 30 days.
                ``(3) Any other member of the armed forces who is on active
            duty but is not entitled to basic pay by reason of section
            502(b) of title 37 due to authorized absence (A) to participate
            in an educational program, or (B) for an emergency purpose, as
            determined by the Secretary concerned.''.

        (b) Eligibility for Placement on Temporary Disability Retirement
    List.--Section 1202 of title 10, United States Code, is amended by
    striking out ``a member of a regular component'' and all that follows
    through ``more than 30 days,'' and inserting in lieu thereof ``a member
    described in section 1201(c) of this title''.
        (c) Eligibility for Separation.--Section 1203 of title 10, United
    States Code, is amended by striking out the matter preceding paragraph
    (1) and inserting in lieu thereof the following:
        ``(a) Separation.--Upon a determination by the Secretary concerned
    that a member described in section 1201(c) of this title is unfit to
    perform the duties of the member's office, grade, rank, or rating
    because of physical disability incurred while entitled to basic pay or
    while absent as described in section 1201(c)(3) of this title, the
    member may be separated from the member's armed force, with severance
    pay computed under section 1212 of this title, if the Secretary also
    makes the determinations with respect to the member and that disability
    specified in subsection (b).
        ``(b) Required Determinations of Disability.--Determinations
    referred to in subsection (a) are determinations by the Secretary that--
    ''.
        (d) <<NOTE: Applicability. 10 USC 1201 note.>>  Effective Date.--The
    amendments made by this section shall take effect on the date of the
    enactment of this Act
    and shall apply with respect to physical disabilities incurred on or
    after such date.

    [[Page 110 STAT. 2534]]

    SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE ADVOCATE
                            TO ACT AS A MILITARY NOTARY PUBLIC WHEN
                            NOT IN A DUTY STATUS.

        Section 1044a(b) of title 10, United States Code, is amended--
                (1) in paragraph (1), by striking out ``on active duty or
            performing inactive-duty training'' and inserting in lieu
            thereof ``, including reserve judge advocates when not in a duty
            status'';
                (2) in paragraph (3), by striking out ``adjutants on active
            duty or performing inactive-duty training'' and inserting in
            lieu thereof ``adjutants, including reserve members when not in
            a duty status''; and
                (3) in paragraph (4), by striking out ``persons on active
            duty or performing inactive-duty training'' and inserting in
            lieu thereof ``members of the armed forces, including reserve
            members when not in a duty status,''.
    SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE NATIONAL
                            GUARD WHEN NOT IN FEDERAL SERVICE.

        (a) Establishment.--The Secretary of Defense shall establish a panel
    to review the various authorities for court-martial and nonjudicial
    punishment jurisdiction for the National Guard not in Federal service
    and the use of those authorities.
        (b) Membership.--The Secretary shall appoint the members of the
    panel so as to ensure representation of the following:
                (1) The State Adjutants General of the National Guard.
                (2) The State Attorneys General.
                (3) The Joint Service Committee on Military Justice of the
            Department of Defense.

        (c) Duties.--Matters reviewed by the panel shall include the
    following:
                (1) The extent of the use of court-martial and nonjudicial
            punishment authority for the National Guard not in Federal
            service.
                (2) The extent to which the authority used is--
                        (A) authority under title 32, United States Code; or
                        (B) authority under State law.

        (d) Report.--(1) Not later than February 1, 1997, the panel shall
    submit a report on the panel's findings and conclusions to the Secretary
    of Defense.
        (2) The report shall include recommended legislation for amending
    title 32, United States Code--
                (A) to increase the uniformity in State use of courts-
            martial and nonjudicial punishment for the National Guard when
            not in Federal service; and
                (B) to achieve increased comparability between the court-
            martial and nonjudicial punishment procedures that are
            applicable to the National Guard not in Federal service and the
            court-martial and nonjudicial punishment procedures that are
            applicable under the Uniform Code of Military Justice to the
            National Guard in Federal service.

        (e) Submission of Report to Congress.--Not later than March 1, 1997,
    the Secretary of Defense shall submit to Congress the report of the
    panel under subsection (d) together with the views of the Secretary
    regarding the report and the matters covered in the report.

    [[Page 110 STAT. 2535]]

    SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT PROGRAM TO
                            INCLUDE FIREFIGHTERS.

        Section 1152(g) of title 10, United States Code, is amended--
                (1) by striking out ``(g) Conditional Expansion of Placement
            to Include Firefighters.--(1) Subject to paragraph (2), the''
            and inserting in lieu thereof ``(g) Authority To Expand
            Placement To Include Firefighters.--The''; and
                (2) in paragraph (2)--
                        (A) by striking out the first sentence; and
                        (B) in the second sentence, by inserting
                    ``authorized by this subsection'' after ``expansion''.
    SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND
                            CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT AS
                            TEACHERS OR TEACHERS' AIDES.

        (a) Program for Separated Members.--(1) Section 1151 of title 10,
    United States Code, is amended--
                (A) in subsection (f)(2), by striking out ``five school
            years'' in subparagraphs (A) and (B) and inserting in lieu
            thereof ``two school years''; and
                (B) in subsection (h)(3)(A), by striking out ``five
            consecutive school years'' and inserting in lieu thereof ``two
            consecutive school years''.

        (2) Subsection (g)(2) of such section is amended--
                (A) by striking out the comma after ``section 1174a of this
            title'' and inserting in lieu thereof ``or''; and
                (B) by striking out ``, or retires pursuant to the authority
            provided in section 4403 of the National Defense Authorization
            Act for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293
            note)''.

        (3) Subsection (h)(3)(B) of such section is amended--
                (A) in clause (i), by striking out ``$25,000'' and inserting
            in lieu thereof ``$17,000'';
                (B) in clause (ii)--
                        (i) by striking out ``40 percent'' and inserting in
                    lieu thereof ``25 percent''; and
                        (ii) by striking out ``$10,000'' and inserting in
                    lieu thereof ``$8,000''; and
                (C) by striking out clauses (iii), (iv), and (v).

        (b) Separated Civilian Employees of the Department of Defense.--
    Section 1598(d)(2) of such title is amended by striking out ``five
    school years'' in subparagraphs (A) and (B) and inserting in lieu
    thereof ``two school years''.
        (c) Displaced Department of Defense Contractor Employees.--Section
    2410j(f)(2) of such title is amended by striking out ``five school
    years'' in subparagraphs (A) and (B) and inserting in lieu thereof ``two
    school years''.
        (d) <<NOTE: 10 USC 1151 note.>>  Savings Provision.--The amendments
    made by this section do not affect obligations under agreements entered
    into in accordance with section 1151, 1598, or 2410j of title 10, United
    States Code, before the date of the enactment of this Act.

    [[Page 110 STAT. 2536]]

    SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN
                            A PHYSICAL DISABILITY IS FOUND AT ANY
                            PHYSICAL EXAMINATION.

        Section 1372 of title 10, United States Code, is amended by striking
    out ``his physical examination for promotion'' in paragraphs (3) and (4)
    and inserting in lieu thereof ``a physical examination''.

    SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

        (a) Repeal of Applicability of Authorities to Department of Defense
    Civilian Employees and Contractor Employees.--(1) Section 1501 of title
    10, United States Code, is amended--
                (A) in subsection (c)--
                        (i) by striking out ``applies in the case of'' and
                    all that follows through ``(1) Any member'' and
                    inserting in lieu thereof ``applies in the case of any
                    member''; and
                        (ii) by striking out paragraph (2); and
                (B) by striking out subsection (f).

        (2) Section 1503(c) of such title is amended--
                (A) in paragraph (1), by striking out ``one individual
            described in paragraph (2)'' and inserting in lieu thereof ``one
            military officer'';
                (B) by striking out paragraph (2); and
                (C) by redesignating paragraphs (3) and (4) as paragraphs
            (2) and (3), respectively.

        (3) Section 1504(d) of such title is amended--
                (A) by striking out the text of paragraph (1) and inserting
            in lieu thereof the following new text: ``A board appointed
            under this section shall be composed of at least three members
            who are officers having the grade of major or lieutenant
            commander or above.''; and
                (B) in paragraph (4), by striking out ``section 1503(c)(4)''
            and inserting in lieu thereof ``section 1503(c)(3)''.

        (4) Paragraph (1) of section 1513 of such title is amended to read
    as follows:
                ``(1) The term `missing person' means a member of the armed
            forces on active duty who is in a missing status.''.

        (b) Report on Preliminary Assessment of Status.--(1) Section 1502 of
    such title is amended--
                (A) in subsection (a)(2)--
                        (i) by striking out ``48 hours'' and inserting in
                    lieu thereof ``10 days''; and
                        (ii) by striking out ``theater component commander
                    with jurisdiction over the missing person'' and
                    inserting in lieu thereof ``Secretary concerned'';
                (B) by striking out subsection (b);
                (C) by redesignating subsection (c) as subsection (b); and
                (D) in subsection (b), as so redesignated, by striking out
            the second sentence.

        (2) Section 1503(a) of such title is amended by striking out
    ``section 1502(b)'' and inserting in lieu thereof ``section 1502(a)''.
        (3) Section 1513 of such title is amended by striking out paragraph
    (8).
        (c) Frequency of Subsequent Reviews.--Subsection (b) of section 1505
    of such title is amended to read as follows:
        ``(b) Frequency of Subsequent Reviews.--The Secretary concerned
    shall conduct inquiries into the whereabouts and status of a person
    under subsection (a) upon receipt of information that

    [[Page 110 STAT. 2537]]

    may result in a change of status of the person. The Secretary concerned
    shall appoint a board to conduct such inquiries.''.
        (d) Repeal of Statutory Penalties for Wrongful Withholding of
    Information.--Section 1506 of such title is amended--
                (1) by striking out subsection (e); and
                (2) by redesignating subsection (f) as subsection (e).

        (e) Information To Accompany Recommendation of Status of Death.--
    Section 1507(b) of such title is amended by striking out paragraphs (3)
    and (4).
        (f) Scope of Preenactment Review.--(1) Section 1509 of such title is
    amended--
                (A) by striking out subsection (c); and
                (B) by redesignating subsection (d) as subsection (c).

        (2)(A) The heading of such section is amended by striking out ``,
    special interest''.
        (B) The item relating to such section in the table of sections at
    the beginning of chapter 76 of such title is amended by striking out ``,
    special interest''.

           Subtitle I--Commissioned Corps of the Public Health Service

    SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON
                            CREDITING CADET OR MIDSHIPMEN SERVICE AT
                            THE SERVICE ACADEMIES.

        (a) Prohibition on Counting Enlisted Service Performed While at
    Service Academy.--Subsection (a) of section 971 of title 10, United
    States Code, is amended by inserting before the period at the end the
    following: ``or an officer in the Commissioned Corps of the Public
    Health Service''.
        (b) Prohibition on Counting Service as a Cadet or Midshipman.--
    Subsection (b) of such section is amended to read as follows:
        ``(b) Prohibition on Counting Service as a Cadet or Midshipman.--In
    computing length of service for any purpose, service as a cadet or
    midshipman may not be credited to any of the following officers:
                ``(1) An officer of the Navy or Marine Corps.
                ``(2) A commissioned officer of the Army or Air Force.
                ``(3) An officer of the Coast Guard.
                ``(4) An officer in the commissioned corps of the Public
            Health Service.''.

        (c) Technical Amendments.--(1) Such section is further amended by
    adding at the end the following new subsection:
        ``(c) Service as a Cadet or Midshipman Defined.--In this section,
    the term `service as a cadet or midshipman' means--
                ``(1) service as a cadet at the United States Military
            Academy, United States Air Force Academy, or United States Coast
            Guard Academy; or
                ``(2) service as a midshipman at the United States Naval
            Academy.''.

        (2) Subsection (a) of such section is further amended--
                (A) by inserting ``Prohibition on Counting Enlisted Service
            Performed While at Service Academy or in Naval Reserve.--''
            after ``(a)''; and

    [[Page 110 STAT. 2538]]

                (B) by striking out ``while also serving'' and all that
            follows through ``Naval Academy or'' and inserting in lieu
            thereof ``while also performing service as a cadet or midshipman
            or serving as a midshipman''.

        (3) The heading of such section, and the item relating to such
    section in the table of sections at the beginning of chapter 49 of such
    title, are amended by striking out the seventh word.
    SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH
                            SERVICE OFFICERS ASSIGNED TO THE
                            DEPARTMENT OF DEFENSE.

        Section 206 of the Public Health Service Act (42 U.S.C. 207) is
    amended by adding at the end the following new subsection:
        ``(f) In computing the maximum number of commissioned officers of
    the Public Health Service authorized by law or administrative
    determination to serve on active duty, there may be excluded from such
    computation officers who are assigned to duty in the Department of
    Defense.''.
    SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC HEALTH
                            SERVICE OFFICERS.

        (a) Legal Assistance Available.--Subsection (a) of section 1044 of
    title 10, United States Code, is amended by striking out paragraph (3)
    and inserting in lieu thereof the following:
                ``(3) Officers of the commissioned corps of the Public
            Health Service who are on active duty or entitled to retired or
            equivalent pay.
                ``(4) Dependents of members and former members described in
            paragraphs (1), (2), and (3).''.

        (b) Limitation on Assistance.--Subsection (c) of such section is
    amended--
                (1) by striking out ``armed forces'' and inserting in lieu
            thereof ``uniformed services described in subsection (a)''; and
                (2) by inserting ``such'' after ``dependent of''.

        (c) Clarifying Amendments.--Subsection (a) of such section is
    further amended by striking out ``under his jurisdiction'' in paragraphs
    (1) and (2).
        (d) Stylistic Amendments.--Subsection (a) of such section is further
    amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``to--'' and inserting in lieu thereof ``to the following
            persons:'';
                (2) by capitalizing the first letter of the first word of
            paragraphs (1) and (2);
                (3) by striking out the semicolon at the end of paragraph
            (1) and inserting in lieu thereof a period; and
                (4) by striking out ``; and'' at the end of paragraph (2)
            and inserting in lieu thereof a period.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Military pay raise for fiscal year 1997.
    Sec. 602. Adjustment of rate of cadet and midshipman pay.
    Sec. 603. Pay of senior noncommissioned officers while hospitalized.
    Sec. 604. Availability of basic allowance for quarters for certain
                        members without dependents who serve on sea duty.

    [[Page 110 STAT. 2539]]

    Sec. 605. Uniform applicability of discretion to deny an election not to
                        occupy Government quarters.
    Sec. 606. Establishment of minimum monthly amount of variable housing
                        allowance for high housing cost areas.
    Sec. 607. Family separation allowance for members separated by military
                        orders from spouses who are members.
    Sec. 608. Waiver of time limitations for claim for pay and allowances.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. One-year extension of certain bonuses and special pay
                        authorities for Reserve forces.
    Sec. 612. One-year extension of certain bonuses and special pay
                        authorities for nurse officer candidates, registered
                        nurses, and nurse anesthetists.
    Sec. 613. One-year extension of authorities relating to payment of other
                        bonuses and special pays.
    Sec. 614. Special pay for certain Public Health Service officers.
    Sec. 615. Special incentives to recruit and retain dental officers.
    Sec. 616. Foreign language proficiency pay for Public Health Service and
                        National Oceanic and Atmospheric Administration
                        officers.

                Subtitle C--Travel and Transportation Allowances

    Sec. 621. Allowance in connection with shipping motor vehicle at
                        Government expense.
    Sec. 622. Dislocation allowance at a rate equal to two and one-half
                        months basic allowance for quarters.
    Sec. 623. Allowance for travel performed in connection with leave
                        between consecutive overseas tours.
    Sec. 624. Funding for transportation of household effects of Public
                        Health Service officers.

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

    Sec. 631. Effective date for military retiree cost-of-living adjustment
                        for fiscal year 1998.
    Sec. 632. Clarification of initial computation of retiree COLAs after
                        retirement.
    Sec. 633. Suspension of payment of retired pay of members who are absent
                        from the United States to avoid prosecution.
    Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
    Sec. 635. Increases in Survivor Benefit Plan contributions to be
                        effective concurrently with payment of retired pay
                        cost-of-living increases.
    Sec. 636. Amendments to the Uniformed Services Former Spouses'
                        Protection Act.
    Sec. 637. Prevention of circumvention of court order by waiver of
                        retired pay to enhance civil service retirement
                        annuity.
    Sec. 638. Administration of benefits for so-called minimum income
                        widows.

                            Subtitle E--Other Matters

    Sec. 651. Discretionary allotment of pay, including retired or retainer
                        pay.
    Sec. 652. Reimbursement for adoption expenses incurred in adoptions
                        through
                        private placements.
    Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from
                        certain separation pay.
    Sec. 654. Technical correction clarifying limitation on furnishing
                        clothing or allowances for enlisted National Guard
                        technicians.
    Sec. 655. Technical correction to prior authority for payment of back
                        pay to certain persons.
    Sec. 656. Compensation for persons awarded prisoner of war medal who did
                        not previously receive compensation as a prisoner of
                        war.
    Sec. 657. Payments to certain persons captured and interned by North
                        Vietnam.

                         Subtitle A--Pay and Allowances

    SEC. 601. <<NOTE: 37 USC 1009 note.>>  MILITARY PAY RAISE FOR FISCAL
                YEAR 1997.

        (a) Waiver of Section 1009 Adjustment.--Any adjustment required by
    section 1009 of title 37, United States Code, in elements of
    compensation of members of the uniformed services to become effective
    during fiscal year 1997 shall not be made.
        (b) <<NOTE: Effective date.>>  Increase in Basic Pay and BAS.--
    Effective on January 1, 1997, the rates of basic pay and basic allowance
    for subsistence of members of the uniformed services are increased by
    3.0 percent.

    [[Page 110 STAT. 2540]]

        (c) <<NOTE: Effective date.>>  Increase in BAQ.--Effective on
    January 1, 1997, the rates of basic allowance for quarters of members of
    the uniformed services are increased by 4.6 percent.

    SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

        Section 203(c) of title 37, United States Code, is amended--
                (1) by striking out paragraph (2); and
                (2) in paragraph (1), by striking out ``(1)''.
    SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE
                            HOSPITALIZED.

        (a) Pay During Hospitalization.--Section 210 of title 37, United
    States Code, is amended--
                (1) by redesignating subsection (b) as subsection (c); and
                (2) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) A noncommissioned officer of an armed force who is
    hospitalized and who, during or immediately before such hospitalization,
    completed service as the senior enlisted member of that armed force,
    shall continue to be entitled, for not more than 180 days while so
    hospitalized, to the rate of basic pay authorized for the senior
    enlisted member of that armed force.''.
        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 210. Pay of senior enlisted members during terminal leave and
                            while hospitalized''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 3 of title 37, United States Code, is amended
    to read as follows:

    ``210. Pay of senior enlisted members during terminal leave and while
               hospitalized.''.

    SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR CERTAIN
                MEMBERS WITHOUT DEPENDENTS WHO SERVE ON SEA DUTY.

        (a) Entitlement of Single Members Above Grade E-5.--Section
    403(c)(2) of title 37, United States Code, is amended--
                (1) by striking out ``A member'' in the first sentence and
            inserting in lieu thereof ``(A) Except as provided in
            subparagraphs (B) and (C), a member''; and
                (2) by striking out the second sentence.

        (b) Entitlement of Certain Single Members in Grade
    E-5.--Such section is further amended by adding at the end the following
    new subparagraph:
        ``(B) <<NOTE: Regulations.>>  Under regulations prescribed by the
    Secretary concerned, the Secretary may authorize the payment of a basic
    allowance for quarters to a member of a uniformed service without
    dependents who is serving in pay grade E-5 and is assigned to sea duty.
    In prescribing regulations under this subparagraph, the Secretary
    concerned shall consider the availability of quarters for members
    serving in pay grade E-5.''.

        (c) Entitlement When Both Spouses in Grades Below Grade E-6 Are
    Assigned to Sea Duty.--Such section is further amended by inserting
    after subparagraph (B), as added by subsection (b), the following new
    subparagraph:
        ``(C) Notwithstanding section 421 of this title, two members of the
    uniformed services in a pay grade below pay grade

    [[Page 110 STAT. 2541]]

    E-6 who are married to each other, have no other dependents, and are
    simultaneously assigned to sea duty are jointly entitled to one basic
    allowance for quarters during the period of such simultaneous sea duty.
    The amount of the allowance shall be based on the without dependents
    rate for the pay grade of the senior member of the couple. However, this
    subparagraph shall not apply to a couple if one or both of the members
    are entitled to a basic allowance for quarters under subparagraph
    (B).''.
        (d) Conforming Amendment Regarding Variable Housing Allowance.--
    Section 403a(b)(2)(C) of title 37, United States Code, is amended by
    striking out ``E-6'' and inserting in lieu thereof ``E-4''.
        (e) <<NOTE: 37 USC 403 note.>>  Effective Date.--The amendments made
    by this section shall take effect on July 1, 1997.
    SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN ELECTION
                            NOT TO OCCUPY GOVERNMENT QUARTERS.

        Section 403(b)(3) of title 37, United States Code, is amended by
    striking out ``A member'' and inserting in lieu thereof ``Subject to the
    provisions of subsection (j), a member''.
    SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE
                            HOUSING ALLOWANCE FOR HIGH HOUSING COST
                            AREAS.

        (a) Minimum Monthly Amount of Allowance.--Subsection (c) of section
    403a of title 37, United States Code, is amended by striking out
    paragraph (1) and inserting in lieu thereof the following new paragraph:
        ``(1) The monthly amount of a variable housing allowance under this
    section for a member of a uniformed service with respect to an area is
    equal to the greater of the following amounts:
                ``(A) An amount equal to the difference between--
                        ``(i) the median monthly cost of housing in that
                    area for members of the uniformed services serving in
                    the same pay grade and with the same dependency status
                    as that member; and
                        ``(ii) 80 percent of the median monthly cost of
                    housing in the United States for members of the
                    uniformed services serving in the same pay grade and
                    with the same dependency status as that member.
                ``(B) An amount equal to the difference between--
                        ``(i) the adequate housing allowance floor
                    determined by the Secretary of Defense for all members
                    of the uniformed services in that area entitled to a
                    variable housing allowance under this section; and
                        ``(ii) the monthly basic allowance for quarters for
                    members of the uniformed services serving in the same
                    pay grade and with the same dependency status as that
                    member.''.

        (b) Adequate Housing Allowance Floor.--Such subsection is further
    amended by adding at the end the following new paragraph:
        ``(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of
    Defense shall establish an adequate housing allowance floor for members
    of the uniformed services in an area as a selected percentage, not to
    exceed 85 percent, of the cost of adequate housing in that area based on
    an index of housing costs selected by the Secretary of Defense from
    among the following:

    [[Page 110 STAT. 2542]]

                ``(i) The fair market rentals established annually by the
            Secretary of Housing and Urban Development under section 8(c)(1)
            of the United States Housing Act of 1937 (42 U.S.C.
            1437f(c)(1)).
                ``(ii) An index developed in the private sector that the
            Secretary of Defense determines is comparable to the fair market
            rentals referred to in clause (i) and is appropriate for use to
            determine the adequate housing allowance floor.

        ``(B) The Secretary of Defense shall carry out this paragraph in
    consultation with the Secretary of Transportation, the Secretary of
    Commerce, and the Secretary of Health and Human Services.''.
        (c) Effect on Total Amount Available for Allowance.--Subsection
    (d)(3) of such section is amended in the second sentence by striking out
    ``the second sentence of subsection (c)(3)'' and inserting in lieu
    thereof ``paragraph (1)(B) of subsection (c) and the second sentence of
    paragraph (3) of that subsection''.
        (d) Conforming Amendments.--Subsection (c) of such section is
    further amended--
                (1) in paragraph (3), by striking out ``this subsection'' in
            the first sentence and inserting in lieu thereof ``paragraph
            (1)(A) or the minimum amount of a variable housing allowance
            under paragraph (1)(B)''; and
                (2) in paragraph (5), by inserting ``or minimum amount of a
            variable housing allowance'' after ``costs of housing''.

        (e) <<NOTE: Federal Register, publication. 37 USC 403a note.>>
    Effective Date.--The amendments made by this section shall take effect
    on January 1, 1997, except that the Secretary of Defense may delay
    implementation of the requirements imposed by the amendments to such
    later date as the Secretary considers appropriate upon publication of
    notice to that effect in the Federal Register.
    SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY
                            MILITARY ORDERS FROM SPOUSES WHO ARE
                            MEMBERS.

        (a) Additional Basis for Allowance.--Paragraph (1) of section 427(b)
    of title 37, United States Code, is amended--
                (1) by striking out ``or'' at the end of subparagraph (B);
                (2) by striking out the period at the end of subparagraph
            (C) and inserting in lieu thereof ``; or''; and
                (3) by adding at the end the following new subparagraph:
                ``(D) the member is married to a member of a uniformed
            service, the member has no dependent other than the spouse, the
            two members are separated by reason of the execution of military
            orders, and the two members were residing together immediately
            before being separated by reason of execution of military
            orders.''.

        (b) Conforming Amendment.--Such section is further
    amended by adding at the end the following new paragraph:
        ``(5) Section 421 of this title does not apply to bar an entitlement
    to an allowance under paragraph (1)(D). However, not more than one
    monthly allowance may be paid with respect to a married couple under
    paragraph (1)(D) for any month.''.
    SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND
                            ALLOWANCES.

        Section 3702 of title 31, United States Code, is amended by adding
    at the end the following new subsection:

    [[Page 110 STAT. 2543]]

        ``(e)(1) Upon the request of the Secretary concerned (as defined in
    section 101 of title 37, United States Code), the Comptroller General
    may waive the time limitations set forth in subsection (b) or (c) in the
    case of a claim for pay or allowances provided under title 37 and,
    subject to paragraph (2), settle the claim.
        ``(2) Payment of a claim settled under paragraph (1) shall be
    subject to the availability of appropriations for payment of that
    particular claim.
        ``(3) This subsection does not apply to a claim in excess of
    $25,000.''.

               Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY
                            AUTHORITIES FOR RESERVE FORCES.

        (a) Special Pay for Critically Short Wartime Health Specialists.--
    Section 302g(f) of title 37, United States Code, is amended by striking
    out ``September 30, 1997'' and inserting in lieu thereof ``September 30,
    1998''.
        (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title
    37, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1998''.
        (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37,
    United States Code, is amended by striking out ``September 30, 1997''
    and inserting in lieu thereof ``September 30, 1998''.
        (d) Special Pay for Enlisted Members Assigned to Certain High
    Priority Units.--Section 308d(c) of title 37, United States Code, is
    amended by striking out ``September 30, 1997'' and inserting in lieu
    thereof ``September 30, 1998''.
        (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title
    37, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1998''.
        (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section
    308h(g) of title 37, United States Code, is amended by striking out
    ``September 30, 1997'' and inserting in lieu thereof ``September 30,
    1998''.
        (g) Prior Service Enlistment Bonus.--Section 308i(i) of
    title 37, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1998''.
    SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY
                            AUTHORITIES FOR NURSE OFFICER CANDIDATES,
                            REGISTERED NURSES, AND NURSE ANESTHETISTS.

        (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
    of title 10, United States Code, is amended by striking out ``September
    30, 1997'' and inserting in lieu thereof ``September 30, 1998''.
        (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1998''.
        (c) Incentive Special Pay for Nurse Anesthetists.--Section
    302e(a)(1) of title 37, United States Code, is amended by striking out
    ``September 30, 1997'' and inserting in lieu thereof ``September 30,
    1998''.

    [[Page 110 STAT. 2544]]

    SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF
                            OTHER BONUSES AND SPECIAL PAYS.

        (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
    United States Code, is amended by striking out ``September 30, 1997''
    and inserting in lieu thereof ``September 30, 1998,''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of title
    37, United States Code, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1998''.
        (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and
    308f(c) of title 37, United States Code, are each amended by striking
    out ``September 30, 1997'' and inserting in lieu thereof ``September 30,
    1998''.
        (d) Special Pay for Nuclear Qualified Officers Extending Period of
    Active Service.--Section 312(e) of title 37, United States Code, is
    amended by striking out ``September 30, 1997'' and inserting in lieu
    thereof ``September 30, 1998''.
        (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,
    United States Code, is amended by striking out ``September 30, 1997''
    and inserting in lieu thereof ``September 30, 1998''.
        (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title
    37, United States Code, is amended by striking out ``October 1, 1997''
    and inserting in lieu thereof ``October 1, 1998''.
        (g) Repayment of Education Loans for Certain Health Professionals
    Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United
    States Code, is amended by striking out ``October 1, 1997'' and
    inserting in lieu thereof ``October 1, 1998''.
    SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE
                            OFFICERS.

        (a) Optometrists.--Section 302a(b) of title 37, United States Code,
    is amended--
                (1) in paragraph (2)--
                        (A) by striking out ``an armed force'' in the matter
                    preceding subparagraph (A) and inserting in lieu thereof
                    ``a uniformed service''; and
                        (B) by striking out ``of the military department''
                    in subparagraph (C); and
                (2) in paragraph (4), by striking out ``of the military
            department''.

        (b) Nonphysician Health Care Providers.--Section 302c(d) of title
    37, United States Code, is amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``Secretary of Defense'' and inserting in lieu thereof
            ``Secretary concerned''; and
                (2) in paragraph (1)--
                        (A) by striking out ``or'' the third place it
                    appears; and
                        (B) by inserting before the period at the end the
                    following: ``, or an officer in the Regular or Reserve
                    Corps of the Public Health Service''.

    [[Page 110 STAT. 2545]]

    SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL
                            OFFICERS.

        (a) Variable, Additional, and Board Certified Special Pays for
    Active Duty Dental Officers.--Section 302b(a) of title 37, United States
    Code, is amended--
                (1) in paragraph (2)--
                        (A) in subparagraph (A), by striking out ``$1,200''
                    and inserting in lieu thereof ``$3,000'';
                        (B) in subparagraph (B), by striking out ``$2,000''
                    and inserting in lieu thereof ``$7,000''; and
                        (C) in subparagraph (C), by striking out ``$4,000''
                    and inserting in lieu thereof ``$7,000'';
                (2) in paragraph (4), by striking out subparagraphs (A),
            (B), and (C) and inserting in lieu thereof the following:
                ``(A) $4,000 per year, if the officer has less than three
            years of creditable service.
                ``(B) $6,000 per year, if the officer has at least three but
            less than 14 years of creditable service.
                ``(C) $8,000 per year, if the officer has at least 14 but
            less than 18 years of creditable service.
                ``(D) $10,000 per year, if the officer has at least 18 or
            more years of creditable service.''; and
                (3) in paragraph (5), by striking out subparagraphs (A),
            (B), and (C) and inserting in lieu thereof the following:
                ``(A) $2,500 per year, if the officer has less than 10 years
            of creditable service.
                ``(B) $3,500 per year, if the officer has at least 10 but
            less than 12 years of creditable service.
                ``(C) $4,000 per year, if the officer has at least 12 but
            less than 14 years of creditable service.
                ``(D) $5,000 per year, if the officer has at least 14 but
            less than 18 years of creditable service.
                ``(E) $6,000 per year, if the officer has 18 or more years
            of creditable service.''.

        (b) Reserve Dental Officers Special Pay.--Section 302b of title 37,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(h) Reserve Dental Officers Special Pay.--(1) A reserve dental
    officer described in paragraph (2) is entitled to special pay at the
    rate of $350 a month for each month of active duty, including active
    duty in the form of annual training, active duty for training, and
    active duty for special work.
        ``(2) A reserve dental officer referred to in paragraph (1) is a
    reserve officer who--
                ``(A) is an officer of the Dental Corps of the Army or the
            Navy or an officer of the Air Force designated as a dental
            officer; and
                ``(B) is on active duty under a call or order to active duty
            for a period of less than one year.''.

        (c) Accession Bonus for Dental School Graduates Who Enter the Armed
    Forces.--(1) Chapter 5 of title 37, United States Code, is amended by
    inserting after section 302g the following new section:

    ``Sec. 302h. Special pay: accession bonus for dental officers

        ``(a) Accession Bonus Authorized.--(1) A person who is a graduate of
    an accredited dental school and who, during the period

    [[Page 110 STAT. 2546]]

    beginning on the date of the enactment of this section, and ending on
    September 30, 2002, executes a written agreement described in subsection
    (c) to accept a commission as an officer of the armed forces and remain
    on active duty for a period of not less than four years may, upon the
    acceptance of the agreement by the Secretary concerned, be paid an
    accession bonus in an amount determined by the Secretary concerned.
        ``(2) The amount of an accession bonus under paragraph (1) may not
    exceed $30,000.
        ``(b) Limitation on Eligibility for Bonus.--A person may not be paid
    a bonus under subsection (a) if--
                ``(1) the person, in exchange for an agreement to accept an
            appointment as an officer, received financial assistance from
            the Department of Defense to pursue a course of study in
            dentistry; or
                ``(2) the Secretary concerned determines that the person is
            not qualified to become and remain certified and licensed as a
            dentist.

        ``(c) Agreement.--The agreement referred to in subsection (a) shall
    provide that, consistent with the needs of the armed service concerned,
    the person executing the agreement will be assigned to duty, for the
    period of obligated service covered by the agreement, as an officer of
    the Dental Corps of the Army or the Navy or an officer of the Air Force
    designated as a dental officer.
        ``(d) Repayment.--(1) An officer who receives a payment under
    subsection (a) and who fails to become and remain certified or licensed
    as a dentist during the period for which the payment is made shall
    refund to the United States an amount equal to the full amount of such
    payment.
        ``(2) An officer who voluntarily terminates service on active duty
    before the end of the period agreed to be served under subsection (a)
    shall refund to the United States an amount that bears the same ratio to
    the amount paid to the officer as the unserved part of such period bears
    to the total period agreed to be served.
        ``(3) An obligation to reimburse the United States imposed under
    paragraph (1) or (2) is for all purposes a debt owed to the United
    States.
        ``(4) A discharge in bankruptcy under title 11 that is entered less
    than five years after the termination of an agreement under this section
    does not discharge the person signing such agreement from a debt arising
    under such agreement or this subsection. This paragraph applies to any
    case commenced under title 11 after the date of the enactment of this
    section.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 302g the
    following new item:

    ``302h. Special pay: accession bonus for dental officers.''.

        (3) Section 303a of title 37, United States Code, is amended by
    striking out ``302g'' each place it appears and inserting in lieu
    thereof ``302h''.
        (d) Report on Additional Activities To Increase Recruitment of
    Dentists.--Not later than April 1, 1997, the Secretary of Defense shall
    submit to Congress a report describing the feasibility of increasing the
    number of persons enrolled in the Armed Forces Health Professions
    Scholarship and Financial Assistance program who are pursuing a course
    of study in dentistry in anticipation of service as an officer of the
    Dental Corps of the Army

    [[Page 110 STAT. 2547]]

    or the Navy or an officer of the Air Force designated as a dental
    officer.
        (e) Stylistic Amendments.--Section 302b of title 37, United States
    Code, is amended--
                (1) in subsection (a), by inserting ``Variable, Additional,
            and Board Certification Special Pay.--'' after ``(a)'';
                (2) in subsection (b), by inserting ``Active-Duty
            Agreement.--'' after ``(b)'';
                (3) in subsection (c), by inserting ``Regulations.--'' after
            ``(c)'';
                (4) in subsection (d), by inserting ``Frequency of
            Payments.--'' after ``(d)'';
                (5) in subsection (e), by inserting ``Refund for Period of
            Unserved Obligated Service.--'' after ``(e)'';
                (6) in subsection (f), by inserting ``Effect of Discharge in
            Bankruptcy.--'' after ``(f)''; and
                (7) in subsection (g), by inserting ``Determination of
            Creditable Service.--'' after ``(g)''.
    SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH
                            SERVICE AND NATIONAL OCEANIC AND
                            ATMOSPHERIC ADMINISTRATION OFFICERS.

        (a) Eligibility.--Subsection (a) of section 316 of title 37, United
    States Code, is amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``armed forces'' and inserting in lieu thereof ``uniformed
            services'';
                (2) in paragraph (2)--
                        (A) by striking out ``Secretary of Defense'' and
                    inserting in lieu thereof ``Secretary concerned''; and
                        (B) by inserting ``or public health'' after
                    ``national defense''; and
                (3) in paragraph (3)--
                        (A) in subparagraph (A), by striking out
                    ``military'' and inserting in lieu thereof ``uniformed
                    services'';
                        (B) in subparagraph (C), by striking out
                    ``military''; and
                        (C) in subparagraph (D)--
                              (i) by striking out ``Department of Defense''
                          and inserting in lieu thereof ``uniformed
                          service''; and
                              (ii) by striking out ``Secretary of Defense''
                          and inserting in lieu thereof ``Secretary
                          concerned''.

        (b) Administration.--Subsection (d) of such section is
    amended--
                (1) by striking out ``his jurisdiction and'' and inserting
            in lieu thereof ``the jurisdiction of the Secretary,''; and
                (2) by inserting before the period at the end the following:
            ``, by the Secretary of Health and Human Services for the
            Commissioned Corps of the Public Health Service, and by the
            Secretary of Commerce for the National Oceanic and Atmospheric
            Administration''.

        (c) <<NOTE: Applicability. 37 USC 316 note.>>  Effective Date.--The
    amendments made by this section shall take effect on October 1, 1996,
    and apply with respect to months beginning on or after such date.

    [[Page 110 STAT. 2548]]

                Subtitle C--Travel and Transportation Allowances

    SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR VEHICLE AT
                            GOVERNMENT EXPENSE.

        (a) Allowance Authorized.--Section 406(b)(1)(B) of title 37, United
    States Code, is amended by adding at the end the following: ``If clause
    (i)(I) applies to the transportation by the member of a motor vehicle
    from the old duty station, the monetary allowance under this
    subparagraph shall also cover return travel to the old duty station by
    the member or other person transporting the vehicle. In the case of
    transportation described in clause (ii), the monetary allowance shall
    also cover travel from the new duty station to the port of debarkation
    to pick up the vehicle.''.
        (b) <<NOTE: 37 USC 406 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on January 1, 1997.
    SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-
                            HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

        (a) Allowance Authorized.--Section 407(a) of title 37, United States
    Code, is amended in the matter preceding paragraph (1) by striking out
    ``two months'' and inserting in lieu thereof ``two and one-half
    months''.
        (b) <<NOTE: 37 USC 407 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on January 1, 1997.
    SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE
                            BETWEEN CONSECUTIVE OVERSEAS TOURS.

        (a) Authority for Additional Deferral of Travel.--Section 411b(a)(2)
    of title 37, United States Code, is amended by adding at the end the
    following: ``If the member is unable to undertake the travel before the
    end of such one-year period as a result of duty in connection with a
    contingency operation, the member may defer the travel for one
    additional year beginning on the date the duty of the member in
    connection with the contingency operation ends.''.
        (b) <<NOTE: 37 USC 411b note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect as of November 1, 1995.
    SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF
                            PUBLIC HEALTH SERVICE OFFICERS.

        Section 406(j) of title 37, United States Code, is amended--
                (1) in the first sentence of paragraph (1)--
                        (A) by striking out ``Appropriations available'' and
                    all that follows through ``to a member'' and inserting
                    in lieu thereof ``The Secretary concerned may pay a
                    monetary allowance to a member of the armed forces or a
                    member of the Commissioned Corps of the Public Health
                    Service''; and
                        (B) by striking out ``of the military department'';
                    and
                (2) by adding at the end the following new paragraph:

        ``(3) Appropriations available to the Department of Defense for
    providing transportation of household effects of members of the armed
    forces under subsection (b) shall be available to pay the monetary
    allowance authorized under paragraph (1) to such members. Appropriations
    available to the Department of Health

    [[Page 110 STAT. 2549]]

    and Human Services for providing transportation of household effects of
    members of the Commissioned Corps of the Public Health Service under
    subsection (b) shall be available to pay the monetary allowance
    authorized under paragraph (1) to such members.''.

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

    SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING
                            ADJUSTMENT FOR FISCAL YEAR 1998.

        (a) Repeal of Adjustment of Effective Date for Fiscal Year 1998.--
    Section 1401a(b)(2)(B) of title 10, United States Code, is amended--
                (1) by striking out ``(B) Special rules'' and all that
            follows through ``In the case of'' in clause
    (i) and inserting in lieu thereof ``(B) Special rule for fiscal year
    1996.--In the case of''; and
                (2) by striking out clause (ii).

        (b) Repeal of Contingent Alternative Date for Fiscal Year 1998.--
    Section 631 of the National Defense Authorization Act for Fiscal Year
    1996 (Public Law 104-106; <<NOTE: 10 USC 1401a note.>>  110 Stat. 364)
    is amended by striking out subsection (b).
    SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE COLAS
                            AFTER RETIREMENT.

        (a) In General.--Section 1401a of title 10, United States Code, is
    amended by striking out subsections (c) and (d) and inserting in lieu
    thereof the following new subsections:
        ``(c) First COLA Adjustment for Members With Retired Pay Computed
    Using Final Basic Pay.--
                ``(1) First adjustment with intervening increase in basic
            pay.--Notwithstanding subsection (b), if a person described in
            paragraph (3) becomes entitled to retired pay based on rates of
            monthly basic pay that became effective after the last day of
            the calendar quarter of the base index, the retired pay of the
            member or former member shall be increased on the effective date
            of the next adjustment of retired pay under subsection (b) only
            by the percent (adjusted to the nearest one-tenth of 1 percent)
            by which--
                        ``(A) the price index for the base quarter of that
                    year, exceeds
                        ``(B) the price index for the calendar quarter
                    immediately before the calendar quarter in which the
                    rates of monthly basic pay on which the retired pay is
                    based became effective.
                ``(2) First adjustment with no intervening increase in basic
            pay.--If a person described in paragraph (3) becomes entitled to
            retired pay on or after the effective date of an adjustment in
            retired pay under subsection (b) but before the effective date
            of the next increase in the rates of monthly basic pay, the
            retired pay of the member or former member shall be increased,
            effective on the date the member becomes entitled to that pay,
            by the percent (adjusted to the nearest one-tenth of 1 percent)
            by which--
                        ``(A) the base index, exceeds

    [[Page 110 STAT. 2550]]

                        ``(B) the price index for the calendar quarter
                    immediately before the calendar quarter in which the
                    rates of monthly basic pay on which the retired pay is
                    based became effective.
                ``(3) Members covered.--Paragraphs (1) and (2) apply
            to a member or former member of an armed force who first became
            a member of a uniformed service before August 1, 1986, and whose
            retired pay base is determined under section 1406 of this title.

        ``(d) First COLA Adjustment for Members With Retired Pay Computed
    Using High-Three.--Notwithstanding subsection (b), the retired pay of a
    member or former member of an armed force who first became a member of a
    uniformed service before August 1, 1986, and whose retired pay base is
    determined under section 1407 of this title shall be increased on the
    effective date of the first adjustment of retired pay under subsection
    (b) after the member or former member becomes entitled to retired pay by
    the percent (adjusted to the nearest one-tenth of 1 percent) equal to
    the difference between the percent by which--
                ``(1) the price index for the base quarter of that year,
            exceeds
                ``(2) the price index for the calendar quarter immediately
            before the calendar quarter during which the member became
            entitled to retired pay.''.

        (b) <<NOTE: Applicability. 10 USC 1401a note.>>  Effective Date.--
    The amendment made by subsection (a) shall apply only to adjustments of
    retired and retainer pay effective after the date of the enactment of
    this Act.
    SEC. <<NOTE: 5 USC 8313 note.>>  633. SUSPENSION OF PAYMENT OF
                            RETIRED PAY OF MEMBERS WHO ARE ABSENT FROM
                            THE UNITED STATES TO AVOID PROSECUTION.

        (a) Development of Procedures for Suspension.--The Secretary of
    Defense shall develop uniform procedures under which the Secretary of a
    military department may suspend the payment of the retired pay of a
    member or former member of the Armed Forces during periods in which the
    member willfully remains outside the United States to avoid criminal
    prosecution or civil liability. The procedures shall address the types
    of criminal offenses and civil proceedings for which the procedures may
    be used, including the offenses specified in section 8312 of title 5,
    United States Code, and the manner by which a member, upon the return of
    the member to the United States, may obtain retired pay withheld during
    the member's absence.
        (b) Report to Congress.--The Secretary of Defense shall submit to
    Congress a report describing the procedures developed under subsection
    (a). The report shall include recommendations regarding changes to
    existing provisions of law (including section 8313 of title 5, United
    States Code) that the Secretary determines are necessary to fully
    implement the procedures.
        (c) Retired Pay Defined.--For purposes of this section, the term
    ``retired pay'' means retired pay, retirement pay, retainer pay, or
    equivalent pay, payable under a statute to a member or former member of
    a uniformed service.
        (d) Effective Date.--The uniform procedures required by subsection
    (a) shall be developed not later than 30 days after the date of the
    enactment of this Act.

    [[Page 110 STAT. 2551]]

    SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT PLAN
                            STATUTE.

        Subchapter II of chapter 73 of title 10, United States Code, is
    amended to read as follows:

                     ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

    ``Sec.
    ``1447. Definitions.
    ``1448. Application of Plan.
    ``1449. Mental incompetency of member.
    ``1450. Payment of annuity: beneficiaries.
    ``1451. Amount of annuity.
    ``1452. Reduction in retired pay.
    ``1453. Recovery of amounts erroneously paid.
    ``1454. Correction of administrative errors.
    ``1455. Regulations.

    ``Sec. 1447. Definitions

        ``In this subchapter:
                ``(1) Plan.--The term `Plan' means the Survivor Benefit Plan
            established by this subchapter.
                ``(2) Standard annuity.--The term `standard annuity' means
            an annuity provided by virtue of eligibility under section
            1448(a)(1)(A) of this title.
                ``(3) Reserve-component annuity.--The term `reserve-
            component annuity' means an annuity provided by virtue of
            eligibility under section 1448(a)(1)(B) of this title.
                ``(4) Retired pay.--The term `retired pay' includes retainer
            pay paid under section 6330 of this title.
                ``(5) Reserve-component retired pay.--The term `reserve-
            component retired pay' means retired pay under chapter 1223 of
            this title (or under chapter 67 of this title as in effect
            before the effective date of the Reserve Officer Personnel
            Management Act).
                ``(6) Base amount.--The term `base amount' means the
            following:
                        ``(A) Full amount under standard annuity.--In the
                    case of a person who dies after becoming entitled to
                    retired pay, such term means the amount of monthly
                    retired pay (determined without regard to any reduction
                    under section 1409(b)(2) of this title) to which the
                    person--
                              ``(i) was entitled when he became eligible for
                          that pay; or
                              ``(ii) later became entitled by being advanced
                          on the retired list, performing active duty, or
                          being transferred from the temporary disability
                          retired list to the permanent disability retired
                          list.
                        ``(B) Full amount under reserve-component annuity.--
                    In the case of a person who would have become eligible
                    for reserve-component retired pay but for the fact that
                    he died before becoming 60 years of age, such term means
                    the amount of monthly retired pay for which the person
                    would have been eligible--
                              ``(i) if he had been 60 years of age on the
                          date of his death, for purposes of an annuity to
                          become effective on the day after his death in
                          accordance with a designation made under section
                          1448(e) of this title; or

    [[Page 110 STAT. 2552]]

                              ``(ii) upon becoming 60 years of age (if he
                          had lived to that age), for purposes of an annuity
                          to become effective on the 60th anniversary of his
                          birth in accordance with a designation made under
                          section 1448(e) of this title.
                        ``(C) Reduced amount.--Such term means any amount
                    less than the amount otherwise applicable under
                    subparagraph (A) or (B) with respect to an annuity
                    provided under the Plan but which is not less than $300
                    and which is designated by the person (with the
                    concurrence of the person's spouse, if required under
                    section 1448(a)(3) of this title) providing the annuity
                    on or before--
                              ``(i) the first day for which he becomes
                          eligible for retired pay, in the case of a person
                          providing a standard annuity, or
                              ``(ii) the end of the 90-day period beginning
                          on the date on which he receives the notification
                          required by section 12731(d) of this title that he
                          has completed the years of service required for
                          eligibility for reserve-component retired pay, in
                          the case of a person providing a reserve-component
                          annuity.
                ``(7) Widow.--The term `widow' means the surviving wife of a
            person who, if not married to the person at the time he became
            eligible for retired pay--
                        ``(A) was married to him for at least one year
                    immediately before his death; or
                        ``(B) is the mother of issue by that marriage.
                ``(8) Widower.--The term `widower' means the surviving
            husband of a person who, if not married to the person at the
            time she became eligible for retired pay--
                        ``(A) was married to her for at least one year
                    immediately before her death; or
                        ``(B) is the father of issue by that marriage.
                ``(9) Surviving spouse.--The term `surviving spouse' means a
            widow or widower.
                ``(10) Former spouse.--The term `former spouse' means the
            surviving former husband or wife of a person who is eligible to
            participate in the Plan.
                ``(11) Dependent child.--
                        ``(A) In general.--The term `dependent child' means
                    a person who--
                              ``(i) is unmarried;
                              ``(ii) is (I) under 18 years of age, (II) at
                          least 18, but under 22, years of age and pursuing
                          a full-time course of study or training in a high
                          school, trade school, technical or vocational
                          institute, junior college, college, university, or
                          comparable recognized educational institution, or
                          (III) incapable of self support because of a
                          mental or physical incapacity existing before the
                          person's eighteenth birthday or incurred on or
                          after that birthday, but before the person's
                          twenty-second birthday, while pursuing such a
                          full-time course of study or training; and
                              ``(iii) is the child of a person to whom the
                          Plan applies, including (I) an adopted child, and
                          (II) a stepchild, foster child, or recognized
                          natural child who lived with that person in a
                          regular parent-child relationship.

    [[Page 110 STAT. 2553]]

                        ``(B) Special rules for college students.--For the
                    purpose of subparagraph (A), a child whose twenty-second
                    birthday occurs before July 1 or after August 31 of a
                    calendar year, and while regularly pursuing such a
                    course of study or training, is considered to have
                    become 22 years of age on the first day of July after
                    that birthday. A child who is a student is considered
                    not to have ceased to be a student during an interim
                    between school years if the interim is not more than 150
                    days and if the child shows to the satisfaction of the
                    Secretary of Defense that the child has a bona fide
                    intention of continuing to pursue a course of study or
                    training in the same or a different school during the
                    school semester (or other period into which the school
                    year is divided) immediately after the interim.
                        ``(C) Foster children.--A foster child, to qualify
                    under this paragraph as the dependent child of a person
                    to whom the Plan applies, must, at the time of the death
                    of that person, also reside with, and receive over one-
                    half of his support from, that person, and not be cared
                    for under a social agency contract. The temporary
                    absence of a foster child from the residence of that
                    person, while a student as described in this paragraph,
                    shall not be considered to affect the residence of such
                    a foster child.
                ``(12) Court.--The term `court' has the meaning given that
            term by section 1408(a)(1) of this title.
                ``(13) Court order.--
                        ``(A) In general.--The term `court order' means a
                    court's final decree of divorce, dissolution, or
                    annulment or a court ordered, ratified, or approved
                    property settlement incident to such a decree (including
                    a final decree modifying the terms of a previously
                    issued decree of divorce, dissolution, annulment, or
                    legal separation, or of a court ordered, ratified, or
                    approved property settlement agreement incident to such
                    previously issued decree).
                        ``(B) Final decree.--The term `final decree' means a
                    decree from which no appeal may be taken or from which
                    no appeal has been taken within the time allowed for the
                    taking of such appeals under the laws applicable to such
                    appeals, or a decree from which timely appeal has been
                    taken and such appeal has been finally decided under the
                    laws applicable to such appeals.
                        ``(C) Regular on its face.--The term `regular on its
                    face', when used in connection with a court order, means
                    a court order that meets the conditions prescribed in
                    section 1408(b)(2) of this title.

    ``Sec. 1448. Application of plan

        ``(a) General Rules for Participation in the Plan.--
                ``(1) Name of plan; eligible participants.--The program
            established by this subchapter shall be known as the Survivor
            Benefit Plan. The following persons are eligible to participate
            in the Plan:
                        ``(A) Persons entitled to retired pay.
                        ``(B) Persons who would be eligible for reserve-
                    component retired pay but for the fact that they are
                    under 60 years of age.

    [[Page 110 STAT. 2554]]

                ``(2) Participants in the plan.--The Plan applies to the
            following persons, who shall be participants in the Plan:
                        ``(A) Standard annuity participants.--A person who
                    is eligible to participate in the Plan under paragraph
                    (1)(A) and who is married or has a dependent child when
                    he becomes entitled to retired pay, unless he elects
                    (with his spouse's concurrence, if required under
                    paragraph (3)) not to participate in the Plan before the
                    first day for which he is eligible for that pay.
                        ``(B) Reserve-component annuity participants.--A
                    person who (i) is eligible to participate in the Plan
                    under paragraph (1)(B), (ii) is married or has a
                    dependent child when he is notified under section
                    12731(d) of this title that he has completed the years
                    of service required for eligibility for reserve-
                    component retired pay, and (iii) elects to participate
                    in the Plan (and makes a designation under subsection
                    (e)) before the end of the 90-day period beginning on
                    the date he receives such notification.
            A person described in clauses (i) and (ii) of subparagraph (B)
            who does not elect to participate in the Plan before the end of
            the 90-day period referred to in that clause remains eligible,
            upon reaching 60 years of age and otherwise becoming entitled to
            retired pay, to participate in the Plan in accordance with
            eligibility under paragraph (1)(A).
                ``(3) Elections.--
                        ``(A) Spousal consent for certain elections
                    respecting standard annuity.--A married person who is
                    eligible to provide a standard annuity may not without
                    the concurrence of the person's spouse elect--
                              ``(i) not to participate in the Plan;
                              ``(ii) to provide an annuity for the person's
                          spouse at less than the maximum level; or
                              ``(iii) to provide an annuity for a dependent
                          child but not for the person's spouse.
                        ``(B) Spousal consent for certain elections
                    respecting reserve-component annuity.--A married person
                    who elects to provide a reserve-component annuity may
                    not without the concurrence of the person's spouse
                    elect--
                              ``(i) to provide an annuity for the person's
                          spouse at less than the maximum level; or
                              ``(ii) to provide an annuity for a dependent
                          child but not for the person's spouse.
                        ``(C) Exception when spouse unavailable.--A person
                    may make an election described in subparagraph (A) or
                    (B) without the concurrence of the person's spouse if
                    the person establishes to the satisfaction of the
                    Secretary concerned--
                              ``(i) that the spouse's whereabouts cannot be
                          determined; or
                              ``(ii) that, due to exceptional circumstances,
                          requiring the person to seek the spouse's consent
                          would otherwise be inappropriate.
                        ``(D) Construction with former spouse election
                    provisions.--This paragraph does not affect any right or
                    obligation to elect to provide an annuity for a former
                    spouse

    [[Page 110 STAT. 2555]]

                    (or for a former spouse and dependent child) under
                    subsection (b)(2).
                        ``(E) Notice to spouse of election to provide former
                    spouse annuity.--If a married person who is eligible to
                    provide a standard annuity elects to provide an annuity
                    for a former spouse (or for a former spouse and
                    dependent child) under subsection (b)(2), that person's
                    spouse shall be notified of that election.
                ``(4) Irrevocability of elections.--
                        ``(A) Standard annuity.--An election under paragraph
                    (2)(A) not to participate in the Plan is irrevocable if
                    not revoked before the date on which the person first
                    becomes entitled to retired pay.
                        ``(B) Reserve-component annuity.--An election under
                    paragraph (2)(B) to participate in the Plan is
                    irrevocable if not revoked before the end of the 90-day
                    period referred to in that paragraph.
                ``(5) Participation by person marrying after re-
            tirement, etc.--
                        ``(A) Election to participate in plan.--A person who
                    is not married and has no dependent child upon becoming
                    eligible to participate in the Plan but who later
                    marries or acquires a dependent child may elect to
                    participate in the Plan.
                        ``(B) Manner and time of election.--Such an election
                    must be written, signed by the person making the
                    election, and received by the Secretary concerned within
                    one year after the date on which that person marries or
                    acquires that dependent child.
                        ``(C) Limitation on revocation of election.--Such an
                    election may not be revoked except in accordance with
                    subsection (b)(3).
                        ``(D) Effective date of election.--The election is
                    effective as of the first day of the first calendar
                    month following the month in which the election is
                    received by the Secretary concerned.
                        ``(E) Designation if rcsbp election.--In the case of
                    a person providing a reserve-component annuity, such an
                    election shall include a designation under subsection
                    (e).
                ``(6) Election out of plan by person with spouse coverage
            who remarries.--
                        ``(A) General rule.--A person--
                              ``(i) who is a participant in the Plan and is
                          providing coverage under the Plan for a spouse (or
                          a spouse and child);
                              ``(ii) who does not have an eligible spouse
                          beneficiary under the Plan; and
                              ``(iii) who remarries,
                    may elect not to provide coverage under the Plan for the
                    person's spouse.
                        ``(B) Effect of election on retired pay.--If such an
                    election is made, reductions in the retired pay of that
                    person under section 1452 of this title shall not be
                    made.
                        ``(C) Terms and conditions of election.--An election
                    under this paragraph--
                              ``(i) is irrevocable;

    [[Page 110 STAT. 2556]]

                              ``(ii) shall be made within one year after the
                          person's remarriage; and
                              ``(iii) shall be made in such form and manner
                          as may be prescribed in regulations under section
                          1455 of this title.
                        ``(D) Notice to spouse.--If a person makes an
                    election under this paragraph--
                              ``(i) not to participate in the Plan;
                              ``(ii) to provide an annuity for the person's
                          spouse at less than the maximum level; or
                              ``(iii) to provide an annuity for a dependent
                          child but not for the person's spouse,
                    the person's spouse shall be notified of that election.
                        ``(E) Construction with former spouse election
                    provisions.--This paragraph does not affect any right or
                    obligation to elect to provide an annuity to a former
                    spouse under subsection (b).

        ``(b) Insurable Interest and Former Spouse Coverage.--
                ``(1) Coverage for person with insurable interest.--
                        ``(A) General rule.--A person who is not married and
                    does not have a dependent child upon becoming eligible
                    to participate in the Plan may elect to provide an
                    annuity under the Plan to a natural person with an
                    insurable interest in that person. In the case of a
                    person providing a reserve-component annuity, such an
                    election shall include a designation under subsection
                    (e).
                        ``(B) Termination of coverage.--An election under
                    subparagraph (A) for a beneficiary who is not the former
                    spouse of the person providing the annuity may be
                    terminated. Any such termination shall be made by a
                    participant by the submission to the Secretary concerned
                    of a request to discontinue participation in the Plan,
                    and such participation in the Plan shall be discontinued
                    effective on the first day of the first month following
                    the month in which the request is received by the
                    Secretary concerned. Effective on
    such date, the Secretary concerned shall discontinue the reduction being
    made in such person's retired pay on account of participation in the
    Plan or, in the case of a person who has been required to make deposits
    in the Treasury on account of participation in the Plan, such person may
    discontinue making such deposits effective on such date.
                        ``(C) Form for discontinuation.--A request under
                    subparagraph (B) to discontinue participation in the
                    Plan shall be in such form and shall contain such
                    information as may be required under regulations
                    prescribed by the Secretary of Defense.
                        ``(D) Withdrawal of request for discontinuation.--
                    The Secretary concerned shall furnish promptly to each
                    person who submits a request under subparagraph (B) to
                    discontinue participation in the Plan a written
                    statement of the advantages and disadvantages of
                    participating in the Plan and the possible disadvantages
                    of discontinuing participation. A person may withdraw
                    the request to discontinue participation if withdrawn
                    within 30 days after having been submitted to the
                    Secretary concerned.

    [[Page 110 STAT. 2557]]

                        ``(E) Consequences of discontinuation.--Once
                    participation is discontinued, benefits may not be paid
                    in conjunction with the earlier participation in the
                    Plan and premiums paid may not be refunded.
                    Participation in the Plan may not later be resumed
                    except through a qualified election under paragraph (5)
                    of subsection (a).
                ``(2) Former spouse coverage upon becoming a participant in
            the plan.--
                        ``(A) General rule.--A person who has a former
                    spouse upon becoming eligible to participate in the Plan
                    may elect to provide an annuity to that former spouse.
                        ``(B) Effect of former spouse election on spouse or
                    dependent child.--In the case of a person with a spouse
                    or a dependent child, such an election prevents payment
                    of an annuity to that spouse or child (other than a
                    child who is a beneficiary under an election under
                    paragraph (4)), including payment under subsection (d).
                        ``(C) Designation if more than one former spouse.--
                    If there is more than one former spouse, the person
                    shall designate which former spouse is to be provided
                    the annuity.
                        ``(D) Designation if rcsbp election.--In the case of
                    a person providing a reserve-component annuity, such an
                    election shall include a designation under subsection
                    (e).
                ``(3) Former spouse coverage by persons already
            participating in plan.--
                        ``(A) Election of coverage.--
                              ``(i) Authority for election.--A person--
                                        ``(I) who is a participant in the
                                    Plan and is providing coverage for a
                                    spouse or a spouse and child (even
                                    though there is no beneficiary currently
                                    eligible for such coverage), and
                                        ``(II) who has a former spouse who
                                    was not that person's former spouse when
                                    that person became eligible to
                                    participate in the Plan,
                          may (subject to subparagraph (B)) elect to provide
                          an annuity to that former spouse.
                              ``(ii) Termination of previous coverage.--Any
                          such election terminates any previous coverage
                          under the Plan.
                              ``(iii) Manner and time of election.--Any such
                          election must be written, signed by the person
                          making the election, and received by the Secretary
                          concerned within one year after the date of the
                          decree of divorce, dissolution, or annulment.
                        ``(B) Limitation on election.--A person may not make
                    an election under subparagraph (A) to provide an annuity
                    to a former spouse who that person married after
                    becoming eligible for retired pay unless--
                              ``(i) the person was married to that former
                          spouse for at least one year, or
                              ``(ii) that former spouse is the parent of
                          issue by that marriage.
                        ``(C) Irrevocability, effective date, etc.--An
                    election under this paragraph may not be revoked except
                    in accordance with section 1450(f) of this title. Such
                    an election is effective as of the first day of the
                    first calendar

    [[Page 110 STAT. 2558]]

                    month following the month in which it is received by the
                    Secretary concerned. This paragraph does not provide the
                    authority to change a designation previously made under
                    subsection (e).
                        ``(D) Notice to spouse.--If a person who is married
                    makes an election to provide an annuity to a former
                    spouse under this paragraph, that person's spouse shall
                    be notified of the election.
                ``(4) Former spouse and child coverage.--A person who elects
            to provide an annuity for a former spouse under paragraph (2) or
            (3) may, at the time of the election, elect to provide coverage
            under that annuity for both the former spouse and a dependent
            child, if the child resulted from the person's marriage to that
            former spouse.
                ``(5) Disclosure of whether election of former spouse
            coverage is required.--A person who elects to provide an annuity
            to a former spouse under paragraph (2) or (3) shall, at the time
            of making the election, provide the Secretary concerned with a
            written statement (in a form to be prescribed by that Secretary
            and signed by such person and the former spouse) setting forth--
                        ``(A) whether the election is being made pursuant to
                    the requirements of a court order; or
                        ``(B) whether the election is being made pursuant to
                    a written agreement previously entered into voluntarily
                    by such person as a part of, or incident to, a
                    proceeding of divorce, dissolution, or annulment and (if
                    so)
    whether such voluntary written agreement has been incorporated in, or
    ratified or approved by, a court order.

        ``(c) Persons on Temporary Disability Retired List.--The application
    of the Plan to a person whose name is on the temporary disability
    retired list terminates when his name is removed from that list and he
    is no longer entitled to disability retired pay.
        ``(d) Coverage for Survivors of Retirement-Eligible Members Who Die
    on Active Duty.--
                ``(1) Surviving spouse annuity.--The Secretary concerned
            shall pay an annuity under this subchapter to the surviving
            spouse of a member who dies on active duty after--
                        ``(A) becoming eligible to receive retired pay;
                        ``(B) qualifying for retired pay except that he has
                    not applied for or been granted that pay; or
                        ``(C) completing 20 years of active service but
                    before he is eligible to retire as a commissioned
                    officer because he has not completed 10 years of active
                    commissioned service.
                ``(2) Dependent child annuity.--The Secretary concerned
            shall pay an annuity under this subchapter to the dependent
            child of a member described in paragraph (1) if there is no
            surviving spouse or if the member's surviving spouse
            subsequently dies.
                ``(3) Mandatory former spouse annuity.--If a member
            described in paragraph (1) is required under a court order or
            spousal agreement to provide an annuity to a former spouse upon
            becoming eligible to be a participant in the Plan or has made an
            election under subsection (b) to provide an annuity to a former
            spouse, the Secretary--

    [[Page 110 STAT. 2559]]

                        ``(A) may not pay an annuity under paragraph (1) or
                    (2); but
                        ``(B) shall pay an annuity to that former spouse as
                    if the member had been a participant in the Plan and had
                    made an election under subsection (b) to provide an
                    annuity to the former spouse, or in accordance with that
                    election, as the case may be, if the Secretary receives
                    a written request from the former spouse concerned that
                    the election be deemed to have been made in the same
                    manner as provided in section 1450(f)(3) of this title.
                ``(4) Priority.--An annuity that may be provided under this
            subsection shall be provided in preference to an annuity that
            may be provided under any other provision of this subchapter on
            account of service of the same member.
                ``(5) Computation.--The amount of an annuity under this
            subsection is computed under section 1451(c) of this title.

        ``(e) Designation for Commencement of Reserve-Component Annuity.--In
    any case in which a person electing to participate in the Plan is
    required to make a designation under this subsection, the person making
    such election shall designate whether, in the event he dies before
    becoming 60 years of age, the annuity provided shall become effective
    on--
                ``(1) the day after the date of his death; or
                ``(2) the 60th anniversary of his birth.

        ``(f) Coverage of Survivors of Persons Dying When Eligible To Elect
    Reserve-Component Annuity.--
                ``(1) Surviving spouse annuity.--The Secretary concerned
            shall pay an annuity under this subchapter to the surviving
            spouse of a person who is eligible to provide a reserve-
            component annuity and who dies--
                        ``(A) before being notified under section 12731(d)
                    of this title that he has completed the years of service
                    required for eligibility for reserve-component retired
                    pay; or
                        ``(B) during the 90-day period beginning on the date
                    he receives notification under section 12731(d) of this
                    title that he has completed the years of service
                    required for eligibility for reserve-component retired
                    pay if he had not made an election under subsection
                    (a)(2)(B) to participate in the Plan.
                ``(2) Dependent child annuity.--The Secretary concerned
            shall pay an annuity under this subchapter to the dependent
            child of a person described in paragraph (1) if there is no
            surviving spouse or if the person's surviving spouse
            subsequently dies.
                ``(3) Mandatory former spouse annuity.--If a person
            described in paragraph (1) is required under a court order or
            spousal agreement to provide an annuity to a former spouse upon
            becoming eligible to be a participant in the Plan or has made an
            election under subsection (b) to provide an annuity to a former
            spouse, the Secretary--
                        ``(A) may not pay an annuity under paragraph (1) or
                    (2); but
                        ``(B) shall pay an annuity to that former spouse as
                    if the person had been a participant in the Plan and had
                    made an election under subsection (b) to provide an
                    annuity to the former spouse, or in accordance with that
                    election, as the case may be, if the Secretary receives
                    a written

    [[Page 110 STAT. 2560]]

                    request from the former spouse concerned that the
                    election be deemed to have been made in the same manner
                    as provided in section 1450(f)(3) of this title.
                ``(4) Computation.--The amount of an annuity under this
            subsection is computed under section 1451(c) of this title.

        ``(g) Election To Increase Coverage Upon Remarriage.--
                ``(1) Election.--A person--
                        ``(A) who is a participant in the Plan and is
                    providing coverage under subsection (a) for a spouse or
                    a spouse and child, but at less than the maximum level;
                    and
                        ``(B) who remarries,
            may elect, within one year of such remarriage, to increase the
            level of coverage provided under the Plan to a level not in
            excess of the current retired pay of that person.
                ``(2) Payment required.--Such an election shall be
            contingent on the person paying to the United States the amount
            determined under paragraph (3) plus interest on such amount at a
            rate determined under regulations prescribed by the Secretary of
            Defense.
                ``(3) Amount to be paid.--The amount referred to in
            paragraph (2) is the amount equal to the difference between--
                        ``(A) the amount that would have been withheld from
                    such person's retired pay under section 1452 of this
                    title if the higher level of coverage had been in effect
                    from the time the person became a participant in the
                    Plan; and
                        ``(B) the amount of such person's retired pay
                    actually withheld.
                ``(4) Manner of making election.--An election under
            paragraph (1) shall be made in such manner as the Secretary
            shall prescribe and shall become effective upon receipt of the
            payment required by paragraph (2).
                ``(5) Disposition of payments.--A payment received under
            this subsection by the Secretary of Defense shall be deposited
            into the Department of Defense Military Retirement Fund. Any
            other payment received under this subsection shall be deposited
            in the Treasury as miscellaneous receipts.

    ``Sec. 1449. Mental incompetency of member

        ``(a) Election by Secretary Concerned on Behalf of Mentally
    Incompetent Member.--If a person to whom section 1448 of this title
    applies is determined to be mentally incompetent by medical officers of
    the armed force concerned or of the Department of Veterans Affairs, or
    by a court of competent jurisdiction, an election described in
    subsection (a)(2) or (b) of section 1448 of this title may be made on
    behalf of that person by the Secretary concerned.
        ``(b) Revocation of Election by Member.--
                ``(1) Authority upon subsequent determination of mental
            competence.--If a person for whom the Secretary has made an
            election under subsection (a) is later determined to be mentally
            competent by an authority named in that subsection, that person
            may, within 180 days after that determination, revoke that
            election.
                ``(2) Deductions from retired pay not to be refunded.--Any
            deduction made from retired pay by reason of such an election
            may not be refunded.

    [[Page 110 STAT. 2561]]

    ``Sec. 1450. Payment of annuity: beneficiaries

        ``(a) <<NOTE: Effective date.>> In General.--Effective as of the
    first day after the death of a person to whom section 1448 of this title
    applies (or on such other day as that person may provide under
    subsection (j)), a monthly annuity under section 1451 of this title
    shall be paid to the person's beneficiaries under the Plan, as follows:
                ``(1) Surviving spouse or former spouse.--The eligible
            surviving spouse or the eligible former spouse.
                ``(2) Surviving children.--The surviving dependent children
            in equal shares, if the eligible surviving spouse or the
            eligible former spouse is dead, dies, or otherwise becomes
            ineligible under this section.
                ``(3) Dependent children.--The dependent children in equal
            shares if the person to whom section 1448 of this title applies
            (with the concurrence of the person's spouse, if required under
            section 1448(a)(3) of this title) elected to provide an annuity
            for dependent children but not for the spouse or former spouse.
                ``(4) Natural person designated under `insurable interest'
            coverage.--The natural person designated under section
            1448(b)(1) of this title, unless the election to provide an
            annuity to the natural person has been changed as provided in
            subsection (f).

        ``(b) Termination of Annuity for Death, Remarriage Before Age 55,
    Etc.--
                ``(1) General rule.--An annuity payable to the beneficiary
            terminates effective as of the first day of the month in which
            eligibility is lost.
                ``(2) Termination of spouse annuity upon death or remarriage
            before age 55.--An annuity for a surviving spouse or former
            spouse shall be paid to the surviving spouse or former spouse
            while the surviving spouse or former spouse is living or, if the
            surviving spouse or former spouse remarries before reaching age
            55, until the surviving spouse or former spouse remarries.
                ``(3) Effect of termination of subsequent marriage before
            age 55.--If the surviving spouse or former spouse remarries
            before reaching age 55 and that marriage is terminated by death,
            annulment, or divorce, payment of the annuity shall be resumed
            effective as of the first day of the month in which the marriage
            is so terminated. However, if the surviving spouse or former
            spouse is also entitled to an annuity under the Plan based upon
            the marriage so terminated, the surviving spouse or former
            spouse may not receive both annuities but must elect which to
            receive.

        ``(c) Offset for Amount of Dependency and Indemnity Compensation.--
                ``(1) Required offset.--If, upon the death of a person to
            whom section 1448 of this title applies, the surviving spouse or
            former spouse of that person is also entitled to dependency and
            indemnity compensation under section 1311(a) of title 38, the
            surviving spouse or former spouse may be paid an annuity under
            this section, but only in the amount that the annuity otherwise
            payable under this section would exceed that compensation.
                ``(2) Effective date of offset.--A reduction in an annuity
            under this section required by paragraph (1) shall be effective

    [[Page 110 STAT. 2562]]

            on the date of the commencement of the period of payment of such
            dependency and indemnity compensation under title 38.

        ``(d) Limitation on Payment of Annuities When Coverage Under Civil
    Service Retirement Elected.--If, upon the death of a person to whom
    section 1448 of this title applies, that person had in effect a waiver
    of that person's retired pay for the purposes of subchapter III of
    chapter 83 of title 5, an annuity under this section shall not be
    payable unless, in accordance with section 8339(j) of title 5, that
    person
    notified the Office of Personnel Management that he did not desire any
    spouse surviving him to receive an annuity under section 8341(b) of that
    title.

        ``(e) Refund of Amounts Deducted From Retired Pay When DIC Offset Is
    Applicable.--
                ``(1) Full refund when dic greater than sbp annuity.--If an
            annuity under this section is not payable because of subsection
            (c), any amount deducted from the retired pay of the deceased
            under section 1452 of this title shall be refunded to the
            surviving spouse or former spouse.
                ``(2) Partial refund when sbp annuity reduced by dic.--If,
            because of subsection (c), the annuity payable is less than the
            amount established under section 1451 of this title, the annuity
            payable shall be recalculated under that section. The amount of
            the reduction in the retired pay required to provide that
            recalculated annuity shall be computed under section 1452 of
            this title, and the difference between the amount deducted
            before the computation of that recalculated annuity and the
            amount that would have been deducted on the basis of that
            recalculated annuity shall be refunded to the surviving spouse
            or former spouse.

        ``(f) Change in Election of Insurable Interest or Former Spouse
    Beneficiary.--
                ``(1) Authorized changes.--
                        ``(A) Election in favor of spouse or child.--A
                    person who elects to provide an annuity to a person
                    designated by him under section 1448(b) of this title
                    may, subject to paragraph (2), change that election and
                    provide an annuity to his spouse or dependent child.
                        ``(B) Notice.--The Secretary concerned shall notify
                    the former spouse or other natural person previously
                    designated under section 1448(b) of this title of any
                    change of election under subparagraph (A).
                        ``(C) Procedures, effective date, etc.--Any such
                    change of election is subject to the same rules with
                    respect to execution, revocation, and effectiveness as
                    are set forth in section 1448(a)(5) of this title
                    (without regard to the eligibility of the person making
                    the change of election to make such an election under
                    that section).
                ``(2) Limitation on change in beneficiary when former spouse
            coverage in effect.--A person who, incident to a proceeding of
            divorce, dissolution, or annulment, is required by a court order
            to elect under section 1448(b) of this title to provide an
            annuity to a former spouse (or to both a former spouse and
            child), or who enters into a written agreement (whether
            voluntary or required by a court order) to make such an
            election, and who makes an election pursuant to such order or
            agreement, may not change that election under paragraph

    [[Page 110 STAT. 2563]]

            (1) unless, of the following requirements, whichever are
            applicable in a particular case are satisfied:
                        ``(A) In a case in which the election is required by
                    a court order, or in which an agreement to make the
                    election has been incorporated in or ratified or
                    approved by a court order, the person--
                              ``(i) furnishes to the Secretary concerned a
                          certified copy of a court order which is regular
                          on its face and which modifies the provisions of
                          all previous court orders relating to such
                          election, or the agreement to make such election,
                          so as to permit the person to change the election;
                          and
                              ``(ii) certifies to the Secretary concerned
                          that the court order is valid and in effect.
                        ``(B) In a case of a written agreement that has not
                    been incorporated in or ratified or approved by a court
                    order, the person--
                              ``(i) furnishes to the Secretary concerned a
                          statement, in such form as the Secretary concerned
                          may prescribe, signed by the former spouse and
                          evidencing the former spouse's agreement to a
                          change in the election under paragraph (1); and
                              ``(ii) certifies to the Secretary concerned
                          that the statement is current and in effect.
                ``(3) Required former spouse election to be deemed to have
            been made.--
                        ``(A) Deemed election upon request by former
                    spouse.--If a person described in paragraph (2) or (3)
                    of section 1448(b) of this title is required (as
                    described in subparagraph (B)) to elect under section
                    1448(b) of this title to provide an annuity to a former
                    spouse and such person then fails or refuses to make
                    such an election, such person shall be deemed to have
                    made such an election if the Secretary concerned
                    receives the following:
                              ``(i) Request from former spouse.--A written
                          request, in such manner as the Secretary shall
                          prescribe, from the former spouse concerned
                          requesting that such an election be deemed to have
                          been made.
                              ``(ii) Copy of court order or other official
                          statement.--Either--
                                        ``(I) a copy of the court order,
                                    regular on its face, which requires such
                                    election or incorporates, ratifies, or
                                    approves the written agreement of such
                                    person; or
                                        ``(II) a statement from the clerk of
                                    the court (or other appropriate
                                    official) that such agreement has been
                                    filed with the court in accordance with
                                    applicable State law.
                        ``(B) Persons required to make election.--A person
                    shall be considered for purposes of subparagraph (A) to
                    be required to elect under section 1448(b) of this title
                    to provide an annuity to a former spouse if--
                              ``(i) the person enters, incident to a
                          proceeding of divorce, dissolution, or annulment,
                          into a written agreement to make such an election
                          and the agreement (I) has been incorporated in or
                          ratified or
    approved by a court order, or (II) has been filed with the court

    [[Page 110 STAT. 2564]]

    of appropriate jurisdiction in accordance with appli-
    cable State law; or
                              ``(ii) the person is required by a court order
                          to make such an election.
                        ``(C) Time limit for request by former spouse.--An
                    election may not be deemed to have been made under
                    subparagraph (A) in the case of any person unless the
                    Secretary concerned receives a request from the former
                    spouse of the person within one year of the date of the
                    court order or filing involved.
                        ``(D) Effective date of deemed election.--An
                    election deemed to have been made under subparagraph (A)
                    shall become effective on the first day of the first
                    month which begins after the date of the court order or
                    filing involved.
                ``(4) Former spouse coverage may be required by court
            order.--A court order may require a person to elect (or to enter
            into an agreement to elect) under section 1448(b) of this title
            to provide an annuity to a former spouse (or to both a former
            spouse and child).

        ``(g) Limitation on Changing or Revoking Elections.--
                ``(1) In general.--An election under this section may not be
            changed or revoked.
                ``(2) Exceptions.--Paragraph (1) does not apply to--
                        ``(A) a revocation of an election under section
                    1449(b) of this title; or
                        ``(B) a change in an election under subsection (f).

        ``(h) Treatment of Annuities Under Other Laws.--Except as provided
    in section 1451 of this title, an annuity under this section is in
    addition to any other payment to which a person is entitled under any
    other provision of law. Such annuity shall be considered as income under
    laws administered by the Secretary of Veterans Affairs.
        ``(i) Annuities Exempt From Certain Legal Process.--Except as
    provided in subsection (l)(3)(B), an annuity under this section is not
    assignable or subject to execution, levy, attachment, garnishment, or
    other legal process.
        ``(j) Effective Date of Reserve-Component Annuities.--
                ``(1) Persons making section 1448(e) designation.--An
            annuity elected by a person providing a reserve-component
            annuity shall be effective in accordance with the designation
            made by such person under section 1448(e) of this title.
                ``(2) Persons dying before making section 1448(e)
            designation.--An annuity payable under section 1448(f) of this
            title shall be effective on the day after the date of the death
            of the person upon whose service the right to the annuity is
            based.

        ``(k) Adjustment of Spouse or Former Spouse Annuity Upon Loss of
    Dependency and Indemnity Compensation.--
                ``(1) Readjustment if beneficiary 55 years of age or more.--
            If a surviving spouse or former spouse whose annuity has been
            adjusted under subsection (c) subsequently loses entitlement to
            dependency and indemnity compensation under section 1311(a) of
            title 38 because of the remarriage of the surviving spouse, or
            former spouse, and if at the time of such remarriage the
            surviving spouse or former spouse is 55 years of age or more,
            the amount of the annuity of the surviving

    [[Page 110 STAT. 2565]]

            spouse or former spouse shall be readjusted, effective on the
            effective date of such loss of dependency and indemnity
            compensation, to the amount of the annuity which would be in
            effect with respect to the surviving spouse or former spouse if
            the adjustment under subsection (c) had never been made.
                ``(2) Repayment of amounts previously refunded.--
                        ``(A) General rule.--A surviving spouse or former
                    spouse whose annuity is readjusted under paragraph (1)
                    shall repay any amount refunded under subsection (e) by
                    reason of the adjustment under subsection (c).
                        ``(B) Interest required if repayment not a lump
                    sum.--If the repayment is not made in a lump sum, the
                    surviving spouse or former spouse shall pay interest on
                    the amount to be repaid. Such interest shall commence on
                    the date on which the first such payment is due and
                    shall be applied over the period during which any part
                    of the repayment remains to be paid.
                        ``(C) Manner of repayment; rate of interest.--The
                    manner in which such repayment shall be made, and the
                    rate of any such interest, shall be prescribed in
                    regulations under section 1455 of this title.
                        ``(D) Deposit of amounts repaid.--An amount repaid
                    under this paragraph (including any such interest)
                    received by the Secretary of Defense shall be deposited
                    into the Department of Defense Military Retirement Fund.
                    Any other amount repaid under this paragraph shall be
                    deposited into the Treasury as miscellaneous receipts.

        ``(l) Participants in the Plan Who Are Missing.--
                ``(1) Authority to presume death of missing participant.--
                        ``(A) In general.--Upon application of the
                    beneficiary of a participant in the Plan who is missing,
                    the Secretary concerned may determine for purposes of
                    this subchapter that the participant is presumed dead.
                        ``(B) Participant who is missing.--A participant in
                    the Plan is considered to be missing for purposes of
                    this subsection if--
                              ``(i) the retired pay of the participant has
                          been suspended on the basis that the participant
                          is missing; or
                              ``(ii) in the case of a participant in the
                          Plan who would be eligible for reserve-component
                          retired pay but for the fact that he is under 60
                          years of
    age, his retired pay, if he were entitled to retired pay, would be
    suspended on the basis that he is missing.
                        ``(C) Requirements applicable to presumption of
                    death.--Any such determination shall be made in
                    accordance with regulations prescribed under section
                    1455 of this title. The Secretary concerned may not make
                    a determination for purposes of this subchapter that a
                    participant who is missing is presumed dead unless the
                    Secretary finds that--
                              ``(i) the participant has been missing for at
                          least 30 days; and
                              ``(ii) the circumstances under which the
                          participant is missing would lead a reasonably
                          prudent person to conclude that the participant is
                          dead.

    [[Page 110 STAT. 2566]]

                ``(2) Commencement of annuity.--Upon a determination under
            paragraph (1) with respect to a participant in the Plan, an
            annuity otherwise payable under this subchapter shall be paid as
            if the participant died on the date as of which the retired pay
            of the participant was suspended.
                ``(3) Effect of person not being dead.--
                        ``(A) Termination of annuity.--If, after a
                    determination under paragraph (1), the Secretary
                    concerned determines that the participant is alive--
                              ``(i) any annuity being paid under this
                          subchapter by reason of this subsection shall be
                          terminated; and
                              ``(ii) the total amount of any annuity
                          payments made by reason of this subsection shall
                          constitute a debt to the United States.
                        ``(B) Collection from participant of annuity amounts
                    erroneously paid.--A debt under subparagraph (A)(ii) may
                    be collected or offset--
                              ``(i) from any retired pay otherwise payable
                          to the participant;
                              ``(ii) if the participant is entitled to
                          compensation under chapter 11 of title 38, from
                          that compen-
                          sation; or
                              ``(iii) if the participant is entitled to any
                          other payment from the United States, from that
                          payment.
                        ``(C) Collection from beneficiary.--If the
                    participant dies before the full recovery of the amount
                    of annuity payments described in subparagraph (A)(ii)
                    has been made by the United States, the remaining amount
                    of such annuity payments may be collected from the
                    participant's beneficiary under the Plan if that
                    beneficiary was the recipient of the annuity payments
                    made by reason of this subsection.

    ``Sec. 1451. Amount of annuity

        ``(a) Computation of Annuity for a Spouse, Former Spouse, or
    Child.--
                ``(1) Standard annuity.--In the case of a standard annuity
            provided to a beneficiary under section 1450(a) of this title
            (other than under section 1450(a)(4)), the monthly annuity
            payable to the beneficiary shall be determined as follows:
                        ``(A) Beneficiary under 62 years of age.--If the
                    beneficiary is under 62 years of age or is a dependent
                    child when becoming entitled to the annuity, the monthly
                    annuity shall be the amount equal to 55 percent of the
                    base amount.
                        ``(B) Beneficiary 62 years of age or older.--
                              ``(i) General rule.--If the beneficiary (other
                          than a dependent child) is 62 years of age or
                          older when becoming entitled to the annuity, the
                          monthly annuity shall be the amount equal to 35
                          percent of the base amount.
                              ``(ii) Rule if beneficiary eligible for social
                          security offset computation.--If the beneficiary
                          is eligible to have the annuity computed under
                          subsection (e) and if, at the time the beneficiary
                          becomes entitled to the annuity, computation of
                          the annuity under that subsection is more
                          favorable to the beneficiary than computation
                          under clause (i), the annuity shall be

    [[Page 110 STAT. 2567]]

                          computed under that subsection rather than under
                          clause (i).
                ``(2) Reserve-component annuity--In the case of a reserve-
            component annuity provided to a beneficiary under section
            1450(a) of this title (other than under section 1450(a)(4)), the
            monthly annuity payable to the beneficiary shall be determined
            as follows:
                        ``(A) Beneficiary under 62 years of age.--If the
                    beneficiary is under 62 years of age or is a dependent
                    child when becoming entitled to the annuity, the monthly
                    annuity shall be the amount equal to a percentage of the
                    base amount that--
                              ``(i) is less than 55 percent; and
                              ``(ii) is determined under subsection (f).
                        ``(B) Beneficiary 62 years of age or older.--
                              ``(i) General rule.--If the beneficiary (other
                          than a dependent child) is 62 years of age or
                          older when becoming entitled to the annuity, the
                          monthly annuity shall be the amount equal to a
                          percentage of the base amount that--
                                        ``(I) is less than 35 percent; and
                                        ``(II) is determined under
                                    subsection (f).
                              ``(ii) Rule if beneficiary eligible for social
                          security offset computation.--If the beneficiary
                          is eligible to have the annuity computed under
                          subsection (e) and if, at the time the beneficiary
                          becomes entitled to the annuity, computation of
                          the annuity under that subsection is more
                          favorable to the beneficiary than computation
                          under clause (i), the annuity shall be computed
                          under that subsection rather than under clause
                          (i).

        ``(b) Insurable Interest Beneficiary.--
                ``(1) Standard annuity.--In the case of a standard annuity
            provided to a beneficiary under section 1450(a)(4) of this
            title, the monthly annuity payable to the beneficiary shall be
            the amount equal to 55 percent of the retired pay of the person
            who elected to provide the annuity after the reduction in that
            pay in accordance with section 1452(c) of this title.
                ``(2) Reserve-component annuity.--In the case of a reserve-
            component annuity provided to a beneficiary under section
            1450(a)(4) of this title, the monthly annuity payable to the
            beneficiary shall be the amount equal to a percentage of the
            retired pay of the person who elected to provide the annuity
            after the reduction in such pay in accordance with section
            1452(c) of this title that--
                        ``(A) is less than 55 percent; and
                        ``(B) is determined under subsection (f).
                ``(3) Computation of reserve-component annuity when
            participant dies before age 60.--For the purposes of paragraph
            (2), a person--
                        ``(A) who provides an annuity that is determined in
                    accordance with that paragraph;
                        ``(B) who dies before becoming 60 years of age; and
                        ``(C) who at the time of death is otherwise entitled
                    to retired pay,
            shall be considered to have been entitled to retired pay at the
            time of death. The retired pay of such person for the

    [[Page 110 STAT. 2568]]

            purposes of such paragraph shall be computed on the basis of the
            rates of basic pay in effect on the date on which the annuity
            provided by such person is to become effective in accordance
            with the designation of such person under section 1448(e) of
            this title.

        ``(c) Annuities for Survivors of Certain Persons Dying During a
    Period of Special Eligibility for SBP.--
                ``(1) In general.--In the case of an annuity provided under
            section 1448(d) or 1448(f) of this title, the amount of the
            annuity shall be determined as follows:
                        ``(A) Beneficiary under 62 years of age.--If the
                    person receiving the annuity is under 62 years of age or
                    is a dependent child when the member or former member
                    dies, the monthly annuity shall be the amount equal to
                    55 percent of the retired pay to which the member or
                    former member would have been entitled if the member or
                    former member had been entitled to that pay based upon
                    his years of active service when he died.
                        ``(B) Beneficiary 62 years of age or older.--
                              ``(i) General rule.--If the person receiving
                          the annuity (other than a dependent child) is 62
                          years of age or older when the member or former
                          member dies, the monthly annuity shall be the
                          amount equal to 35 percent of the retired pay to
                          which the member or former member would have been
                          entitled if the member or former member had been
                          entitled to that pay based upon his years of
                          active service when he died.
                              ``(ii) Rule if beneficiary eligible for social
                          security offset computation.--If the beneficiary
                          is eligible to have the annuity computed under
                          subsection (e) and if, at the time the beneficiary
                          becomes entitled to the annuity, computation of
                          the annuity under that subsection is more
                          favorable to the beneficiary than computation
                          under clause (i), the annuity shall be computed
                          under that subsection rather than under clause
                          (i).
                ``(2) DIC offset.--An annuity computed under paragraph (1)
            that is paid to a surviving spouse shall be reduced by the
            amount of dependency and indemnity compensation to which the
            surviving spouse is entitled under section 1311(a) of title 38.
            Any such reduction shall be effective on the date of the
            commencement of the period of payment of such compensation under
            title 38.
                ``(3) Servicemembers not yet granted retired pay.--In the
            case of an annuity provided by reason of the service of a member
            described in section 1448(d)(1)(B) or 1448(d)(1)(C) of this
            title who first became a member of a uniformed service before
            September 8, 1980, the retired pay to which the member would
            have been entitled when he died shall be determined for purposes
            of paragraph (1) based upon the rate of basic pay in effect at
            the time of death for the grade in which the member was serving
            at the time of death, unless (as determined by the Secretary
            concerned) the member would have been entitled to be retired in
            a higher grade.
                ``(4) Rate of pay to be used in computing annuity.--In the
            case of an annuity paid under section 1448(f) of this

    [[Page 110 STAT. 2569]]

            title by reason of the service of a person who first became a
            member of a uniformed service before September 8, 1980, the
            retired pay of the person providing the annuity shall
            for the purposes of paragraph (1) be computed on the basis of
            the rates of basic pay in effect on the effective date of the
            annuity.

        ``(d) Reduction of Annuities at Age 62.--
                ``(1) Reduction required.--The annuity of a person whose
            annuity is computed under subparagraph (A) of subsection (a)(1),
            (a)(2), or (c)(1) shall be reduced on the first day of the month
            after the month in which the person becomes 62 years of age.
                ``(2) Amount of annuity as reduced.--
                        ``(A) 35 percent annuity.--Except as provided in
                    subparagraph (B), the reduced amount of the annuity
                    shall be the amount of the annuity that the person would
                    be receiving on that date if the annuity had initially
                    been computed under subparagraph (B) of that subsection.
                        ``(B) Savings provision for beneficiaries eligible
                    for social security offset
    computation.--In the case of a person eligible to have an annuity
    computed under subsection (e) and for whom, at the time the person
    becomes 62 years of age, the annuity computed with a reduction under
    subsection (e)(3) is more favorable than the annuity with a reduction
    described in subparagraph (A), the reduction in the annuity shall be
    computed in the same manner as a reduction under subsection (e)(3).

        ``(e) Savings Provision for Certain Beneficiaries.--
                ``(1) Persons covered.--The following beneficiaries under
            the Plan are eligible to have an annuity under the Plan computed
            under this subsection:
                        ``(A) A beneficiary receiving an annuity under the
                    Plan on October 1, 1985, as the surviving spouse or
                    former spouse of the person providing the annuity.
                        ``(B) A spouse or former spouse beneficiary of a
                    person who on October 1, 1985--
                              ``(i) was a participant in the Plan;
                              ``(ii) was entitled to retired pay or was
                          qualified for that pay except that he had not
                          applied for and been granted that pay; or
                              ``(iii) would have been eligible for reserve-
                          component retired pay but for the fact that he was
                          under 60 years of age.
                ``(2) Amount of annuity.--Subject to paragraph (3), an
            annuity computed under this subsection is determined as follows:
                        ``(A) Standard annuity.--In the case of the
                    beneficiary of a standard annuity, the annuity shall be
                    the amount equal to 55 percent of the base amount.
                        ``(B) Reserve-component annuity.--In the case of the
                    beneficiary of a reserve-component annuity, the annuity
                    shall be the percentage of the base amount that--
                              ``(i) is less than 55 percent; and
                              ``(ii) is determined under subsection (f).
                        ``(C) Beneficiaries of persons dying during a period
                    of special eligibility for sbp.--In the case of the
                    beneficiary of an annuity under section 1448(d) or
                    1448(f) of

    [[Page 110 STAT. 2570]]

                    this title, the annuity shall be the amount equal to 55
                    percent of the retired pay of the person providing the
                    annuity (as that pay is determined under subsection
                    (c)).
                ``(3) Social security offset.--An annuity computed under
            this subsection shall be reduced by the lesser of the following:
                        ``(A) Social security computation.--The amount of
                    the survivor benefit, if any, to which the surviving
                    spouse (or the former spouse, in the case of a former
                    spouse beneficiary who became a former spouse under a
                    divorce that became final after November 29, 1989) would
                    be
                    entitled under title II of the Social Security Act (42
                    U.S.C. 401 et seq.) based solely upon service by the
                    person concerned as described in section 210(l)(1) of
                    such Act (42 U.S.C. 410(l)(1)) and calculated assuming
                    that the person concerned lives to age 65.
                        ``(B) Maximum amount of reduction.--40 percent of
                    the amount of the monthly annuity as determined under
                    paragraph (2).
                ``(4) Special rules for social security offset
            computation.--
                        ``(A) Treatment of deductions made on account of
                    work.--For the purpose of paragraph (3), a surviving
                    spouse (or a former spouse, in the case of a person who
                    becomes a former spouse under a divorce that becomes
                    final after November 29, 1989) shall not be considered
                    as entitled to a benefit under title II of the Social
                    Security Act (42 U.S.C. 401 et seq.) to the extent that
                    such benefit has been offset by deductions under section
                    203 of such Act (42 U.S.C. 403) on account of work.
                        ``(B) Treatment of certain periods for which social
                    security refunds are made.--In the computation of any
                    reduction made under paragraph (3), there shall be
                    excluded any period of service described in section
                    210(l)(1) of the Social Security Act (42 U.S.C.
                    410(l)(1))--
                              ``(i) which was performed after December 1,
                          1980; and
                              ``(ii) which involved periods of service of
                          less than 30 continuous days for which the person
                          concerned is entitled to receive a refund under
                          section 6413(c) of the Internal Revenue Code of
                          1986 of the social security tax which the person
                          had paid.

        ``(f) Determination of Percentages Applicable to Computation of
    Reserve-Component Annuities.-- <<NOTE: Regulations.>> The percentage to
    be applied in determining the amount of an annuity computed under
    subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under
    regulations prescribed by the Secretary of Defense. Such regulations
    shall be prescribed taking into consideration the following:
                ``(1) The age of the person electing to provide the annuity
            at the time of such election.
                ``(2) The difference in age between such person and the
            beneficiary of the annuity.
                ``(3) Whether such person provided for the annuity to become
            effective (in the event he died before becoming 60 years of age)
            on the day after his death or on the 60th anniversary of his
            birth.
                ``(4) Appropriate group annuity tables.
                ``(5) Such other factors as the Secretary considers
            relevant.

    [[Page 110 STAT. 2571]]

        ``(g) Adjustments to Annuities.--
                ``(1) Periodic adjustments for cost-of-living.--
                        ``(A) Increases in annuities when retired pay
                    increased.--Whenever retired pay is increased under
                    section 1401a of this title (or any other provision
    of law), each annuity that is payable under the Plan shall be increased
    at the same time.
                        ``(B) Percentage of increase.--The increase shall,
                    in the case of any annuity, be by the same percent
                    as the percent by which the retired pay of the person
                    providing the annuity would have been increased at such
                    time if the person were alive (and otherwise entitled to
                    such pay).
                        ``(C) Certain reductions to be disregarded.--The
                    amount of the increase shall be based on the monthly
                    annuity payable before any reduction under section
                    1450(c) of this title or under subsection (c)(2).
                ``(2) Rounding down.--The monthly amount of an annuity
            payable under this subchapter, if not a multiple of $1, shall be
            rounded to the next lower multiple of $1.

        ``(h) Adjustments to Base Amount.--
                ``(1) Periodic adjustments for cost-of-living.--
                        ``(A) Increases in base amount when retired pay
                    increased.--Whenever retired pay is increased under
                    section 1401a of this title (or any other provision of
                    law), the base amount applicable to each participant in
                    the Plan shall be increased at the same time.
                        ``(B) Percentage of increase.--The increase shall be
                    by the same percent as the percent by which the retired
                    pay of the participant is so increased.
                ``(2) Recomputation at age 62.--When the retired pay of a
            person who first became a member of a uniformed service on or
            after August 1, 1986, and who is a participant in the Plan is
            recomputed under section 1410 of this title upon the person's
            becoming 62 years of age, the base amount applicable to that
            person shall be recomputed (effective on the effective date of
            the recomputation of such retired pay under section 1410 of this
            title) so as to be the amount equal to the amount of the base
            amount that would be in effect on that date if increases in such
            base amount under paragraph (1) had been computed as provided in
            paragraph (2) of section 1401a(b) of this title (rather than
            under paragraph (3) of that section).
                ``(3) Disregarding of retired pay reductions for retirement
            before 30 years of service.--Computation of a member's retired
            pay for purposes of this section shall be made without regard to
            any reduction under section 1409(b)(2) of this title.

        ``(i) Recomputation of Annuity for Certain Beneficiaries.--In the
    case of an annuity under the Plan which is computed on the basis of the
    retired pay of a person who would have been entitled to have that
    retired pay recomputed under section 1410 of this title upon attaining
    62 years of age, but who dies before attaining that age, the annuity
    shall be recomputed, effective on the first day of the first month
    beginning after the date on which the member or former member would have
    attained 62 years of age, so as to be the amount equal to the amount of
    the annuity that would be in effect on that date if increases

    [[Page 110 STAT. 2572]]

    under subsection (h)(1) in the base amount applicable to that annuity to
    the time of the death of the member or former member, and increases in
    such annuity under subsection (g)(1), had been computed as provided in
    paragraph (2) of section 1401a(b) of this title (rather than under
    paragraph (3) of that section).

    ``Sec. 1452. Reduction in retired pay

        ``(a) Spouse and Former Spouse Annuities.--
                ``(1) Required reduction in retired pay.--Except as provided
            in subsection (b), the retired pay of a participant in the Plan
            who is providing spouse coverage (as described in paragraph (5))
            shall be reduced as follows:
                        ``(A) Standard annuity.--If the annuity coverage
                    being providing is a standard annuity, the reduction
                    shall be as follows:
                              ``(i) Disability and nonregular service re-
                          tirees.--In the case of a person who is entitled
                          to retired pay under chapter 61 or chapter 1223 of
                          this title, the reduction shall be in whichever of
                          the alternative reduction amounts is more
                          favorable to that person.
                              ``(ii) Members as of enactment of flat-rate
                          reduction.--In the case of a person who first
                          became a member of a uniformed service before
                          March 1, 1990, the reduction shall be in whichever
                          of the alternative reduction amounts is more
                          favorable to that person.
                              ``(iii) New entrants after enactment of flat-
                          rate reduction.--In the case of a person who first
                          becomes a member of a uniformed service on or
                          after March 1, 1990, and who is entitled to
                          retired pay under a provision of law other than
                          chapter 61 or chapter 1223 of this title, the
                          reduction shall be in an amount equal to 6\1/2\
                          percent of the base amount.
                              ``(iv) Alternative reduction amounts.--For
                          purposes of clauses (i) and (ii), the alternative
                          reduction amounts are the following:
                                        ``(I) Flat-rate reduction.--An
                                    amount equal to 6\1/2\ percent of the
                                    base amount.
                                        ``(II) Amount under pre-flat-rate
                                    reduction.--An amount equal to 2\1/2\
                                    percent of the first $337 (as adjusted
                                    after November 1, 1989, under paragraph
                                    (4)) of the base amount plus 10 percent
                                    of the remainder of the base amount.
                        ``(B) Reserve-component annuity.--If the annuity
                    coverage being provided is a reserve-component annuity,
                    the reduction shall be in whichever of the following
                    amounts is more favorable to that person:
                              ``(i) Flat-rate reduction.--An amount equal to
                          6\1/2\ percent of the base amount plus an amount
                          determined in accordance with regulations
                          prescribed by the Secretary of Defense as a
                          premium for the additional coverage provided
                          through
    reserve-component annuity coverage under the Plan.
                              ``(ii) Amount under pre-flat-rate reduction.--
                          An amount equal to 2\1/2\ percent of the first
                          $337 (as adjusted after November 1, 1989, under
                          paragraph (4)) of the base amount plus 10 percent
                          of the remain

    [[Page 110 STAT. 2573]]

                          der of the base amount plus an amount determined
                          in accordance with regulations prescribed by the
                          Secretary of Defense as a premium for the
                          additional coverage provided through reserve-
                          component annuity coverage under the Plan.
                ``(2) <<NOTE: Regulations.>>  Additional reduction for child
            coverage.--If there is a dependent child as well as a spouse or
            former spouse, the amount prescribed under paragraph (1) shall
            be increased by an amount prescribed under regulations of the
            Secretary of Defense.
                ``(3) No reduction when no beneficiary.--The reduction in
            retired pay prescribed by paragraph (1) shall not be applicable
            during any month in which there is no eligible spouse or former
            spouse beneficiary.
                ``(4) Periodic adjustments.--
                        ``(A) Adjustments for increases in rates of basic
                    pay.--Whenever there is an increase in the rates of
                    basic pay of members of the uniformed services effective
                    on or after October 1, 1985, the amounts under paragraph
                    (1) with respect to which the percentage factor of 2\1/
                    2\ is applied shall be increased by the overall
                    percentage of such increase in the rates of basic pay.
                    The increase under the preceding sentence shall apply
                    only with respect to persons whose retired pay is
                    computed based on the rates of basic pay in effect on or
                    after the date of such increase in rates of basic pay.
                        ``(B) Adjustments for retired pay colas.--In
                    addition to the increase under subparagraph (A), the
                    amounts under paragraph (1) with respect to which the
                    percentage factor of 2\1/2\ is applied shall be further
                    increased at the same time and by the same percentage as
                    an increase in retired pay under section 1401a of this
                    title effective on or after October 1, 1985. Such
                    increase under the preceding sentence shall apply only
                    with respect to a person who initially participates in
                    the Plan on a date which is after both the effective
                    date of such increase under section 1401a and the
                    effective date of the rates of basic pay upon which that
                    person's retired pay is computed.
                ``(5) Spouse coverage described.--For the purposes of
            paragraph (1), a participant in the Plan who is providing spouse
            coverage is a participant who--
                        ``(A) has (i) a spouse or former spouse, or (ii) a
                    spouse or former spouse and a dependent child; and
                        ``(B) has not elected to provide an annuity to a
                    person designated by him under section 1448(b)(1) of
                    this title or, having made such an election, has changed
                    his election in favor of his spouse under section
                    1450(f) of this title.

        ``(b) Child-Only Annuities.--
                ``(1) Required reduction in retired pay.--The retired pay of
            a participant in the Plan who is providing child-only coverage
            (as described in paragraph (4)) shall be reduced by an amount
            prescribed under regulations by the Secretary of Defense.
                ``(2) No reduction when no child.--There shall be no
            reduction in retired pay under paragraph (1) for any month
            during which the participant has no eligible dependent child.

    [[Page 110 STAT. 2574]]

                ``(3) Special rule for certain rcsbp participants.--In the
            case of a participant in the Plan who is participating in the
            Plan under an election under section 1448(a)(2)(B) of this title
            and who provided child-only coverage during a period before the
            participant becomes entitled to receive retired pay, the retired
            pay of the participant shall be reduced by an amount prescribed
            under regulations by the Secretary of Defense to reflect the
            coverage provided under the Plan during the period before the
            participant became entitled to receive retired pay. A reduction
            under this paragraph is in addition to any reduction under
            paragraph (1) and is made without regard to whether there is an
            eligible dependent child during a month for which the reduction
            is made.
                ``(4) Child-only coverage defined.--For the purposes of this
            subsection, a participant in the Plan who is providing child-
            only coverage is a participant who has a dependent child and
            who--
                        ``(A) does not have an eligible spouse or former
                    spouse; or
                        ``(B) has a spouse or former spouse but has elected
                    to provide an annuity for dependent children only.

        ``(c) Reduction for Insurable Interest Coverage.--
                ``(1) Required reduction in retired pay.--The retired pay of
            a person who has elected to provide an annuity to a person
            designated by him under section 1450(a)(4) of this title shall
            be reduced as follows:
                        ``(A) Standard annuity.--In the case of a person
                    providing a standard annuity, the reduction shall be by
                    10 percent plus 5 percent for each full five years the
                    individual designated is younger than that person.
                        ``(B) Reserve component annuity.--In the case of a
                    person providing a reserve-component annuity, the
                    reduction shall be by an amount prescribed under
                    regulations of the Secretary of Defense.
                ``(2) Limitation on total reduction.--The total reduction
            under paragraph (1) may not exceed 40 percent.
                ``(3) Duration of reduction.--The reduction in retired pay
            prescribed by this subsection shall continue during the lifetime
            of the person designated under section 1450(a)(4) of this title
            or until the person receiving retired pay changes his election
            under section 1450(f) of this title.
                ``(4) Rule for computation.--Computation of a member's
            retired pay for purposes of this subsection shall
    be made without regard to any reduction under section 1409(b)(2) of this
    title.

        ``(d) Deposits To Cover Periods When Retired Pay Not Paid.--
                ``(1) Required deposits.--If a person who has elected to
            participate in the Plan has been awarded retired pay and is not
            entitled to that pay for any period, that person must deposit in
            the Treasury the amount that would otherwise have been deducted
            from his pay for that period.
                ``(2) Deposits not required when participant on active
            duty.--Paragraph (1) does not apply to a person with respect to
            any period when that person is on active duty under a call or
            order to active duty for a period of more than 30 days.

    [[Page 110 STAT. 2575]]

        ``(e) Deposits Not Required for Certain Participants in CSRS.--When
    a person who has elected to participate in the Plan waives that person's
    retired pay for the purposes of subchapter III of chapter 83 of title 5,
    that person shall not be required to make the deposit otherwise required
    by subsection (d) as long as that waiver is in effect unless, in
    accordance with section 8339(i) of title 5, that person has notified the
    Office of Personnel Management that he does not desire a spouse
    surviving him to receive an annuity under section 8331(b) of title 5.
        ``(f) Refunds of Deductions Not Allowed.--
                ``(1) General rule.--A person is not entitled to refund of
            any amount deducted from retired pay under this section.
                ``(2) Exceptions.--Paragraph (1) does not apply--
                        ``(A) in the case of a refund authorized by section
                    1450(e) of this title; or
                        ``(B) in case of a deduction made through
                    administrative error.

        ``(g) Discontinuation of Participation by Participants Whose
    Surviving Spouses Will Be Entitled to DIC.--
                ``(1) Discontinuation.--
                        ``(A) Conditions.--Notwithstanding any other
                    provision of this subchapter but subject to paragraphs
                    (2) and (3), a person who has elected to participate in
                    the Plan and who is suffering from a service-connected
                    disability rated by the Secretary of Veterans Affairs as
                    totally disabling and has suffered from such disability
                    while so rated for a continuous period of 10 or more
                    years (or, if so rated for a lesser period, has suffered
                    from such disability while so rated for a continuous
                    period of not less than 5 years from the date of such
                    person's last discharge or release from active duty) may
                    discontinue participation in the Plan by submitting to
                    the Secretary concerned a request to discontinue
                    participation in the Plan.
                        ``(B) Effective date.--Participation in the Plan of
                    a person who submits a request under subparagraph (A)
                    shall be discontinued effective on the first day of the
                    first month following the month in which the request
                    under subparagraph (A) is received by the Secretary
                    concerned. Effective on such date, the Secretary
                    concerned shall discontinue the reduction being made in
                    such person's retired pay on account of participation in
                    the Plan or, in the case of a person who has been
                    required to make deposits in the Treasury on account of
                    participation in the Plan, such person may discontinue
                    making such deposits effective on such date.
                        ``(C) Form for request for discontinuation.--Any
                    request under this paragraph to discontinue
                    participation in the Plan shall be in such form and
                    shall contain such information as the Secretary
                    concerned may require by regulation.
                ``(2) Consent of beneficiaries required.--A person described
            in paragraph (1) may not discontinue participation in the Plan
            under such paragraph without the written consent of the
            beneficiary or beneficiaries of such person under the Plan.
                ``(3) Information on plan to be provided by secretary
            concerned.--

    [[Page 110 STAT. 2576]]

                        ``(A) Information to be provided promptly to
                    participant.--The Secretary concerned shall furnish
                    promptly to each person who files a request under
                    paragraph (1) to discontinue participation in the Plan a
                    written statement of the advantages of participating in
                    the Plan and the possible disadvantages of discontinuing
                    participation.
                        ``(B) Right to withdraw discontinuation request.--A
                    person may withdraw a request made under paragraph (1)
                    if it is withdrawn within 30 days after having been
                    submitted to the Secretary concerned.
                ``(4) Refund of deductions from retired pay.--Upon the death
            of a person described in paragraph (1) who discontinued
            participation in the Plan in accordance with this subsection,
            any amount deducted from the retired pay of that person under
            this section shall be refunded to the person's surviving spouse.
                ``(5) Resumption of participation in plan.--
                        ``(A) Conditions for resumption.--A person described
                    in paragraph (1) who discontinued participation in the
                    Plan may elect to participate again in the Plan if--
                              ``(i) after having discontinued participation
                          in the Plan the Secretary of Veterans Affairs
                          reduces that person's service-connected disability
                          rating to a rating of less than total; and
                              ``(ii) that person applies to the Secretary
                          concerned, within such period of time after the
                          reduction in such person's service-connected
                          disability rating has been made as the Secretary
                          concerned may prescribe, to again participate in
                          the Plan and includes in such application such
                          information as the Secretary concerned may
                          require.
                        ``(B) Effective date of resumed coverage.--Such
                    person's participation in the Plan under
    this paragraph is effective beginning on the first day of the month
    after the month in which the Secretary concerned receives the
    application for resumption of participation in the Plan.
                        ``(C) Resumption of contributions.--When a person
                    elects to participate in the Plan under this paragraph,
                    the Secretary concerned shall begin making reductions in
                    that person's retired pay, or require such person to
                    make deposits in the Treasury under subsection (d), as
                    appropriate, effective on the effective date of such
                    participation under subparagraph (B).

        ``(h) Increases in Reduction With Increases in Retired Pay.--
                ``(1) General rule.--Whenever retired pay is increased under
            section 1401a of this title (or any other provision of law), the
            amount of the reduction to be made under subsection (a) or (b)
            in the retired pay of any person shall be increased at the same
            time and by the same percentage as such retired pay is so
            increased.

        ``(i) Recomputation of Reduction Upon Recomputation of Retired
    Pay.--When the retired pay of a person who first became a member of a
    uniformed service on or after August 1, 1986, and who is a participant
    in the Plan is recomputed under section 1410 of this title upon the
    person's becoming 62 years of age,

    [[Page 110 STAT. 2577]]

    the amount of the reduction in such retired pay under this section shall
    be recomputed (effective on the effective date of the recomputation of
    such retired pay under section 1410 of this title) so as to be the
    amount equal to the amount of such reduction that would be in effect on
    that date if increases in such retired pay under section 1401a(b) of
    this title, and increases in reductions in such retired pay under
    subsection (h), had been computed as provided in paragraph (2) of
    section 1401a(b) of this title (rather than under paragraph (3) of that
    section).

    ``Sec. 1453. Recovery of amounts erroneously paid

        ``(a) Recovery.--In addition to any other method of recovery
    provided by law, the Secretary concerned may authorize the recovery of
    any amount erroneously paid to a person under this subchapter by
    deduction from later payments to that person.
        ``(b) Authority To Waive Recovery.--Recovery of an amount
    erroneously paid to a person under this subchapter is not required if,
    in the judgment of the Secretary concerned and the Comptroller General--
                ``(1) there has been no fault by the person to whom the
            amount was erroneously paid; and
                ``(2) recovery of such amount would be contrary to the
            purposes of this subchapter or against equity and good
            conscience.

    ``Sec. 1454. Correction of administrative errors

        ``(a) Authority.--The Secretary concerned may, under regulations
    prescribed under section 1455 of this title, correct or revoke any
    election under this subchapter when the Secretary considers it necessary
    to correct an administrative error.
        ``(b) Finality.--Except when procured by fraud, a correction or
    revocation under this section is final and conclusive on all officers of
    the United States.

    ``Sec. 1455. <<NOTE: President.>>  Regulations

        ``(a) In General.--The President shall prescribe regulations to
    carry out this subchapter. Those regulations shall, so far as
    practicable, be uniform for the uniformed services.
        ``(b) Notice of Elections.--Regulations prescribed under this
    section shall provide that before the date on which a member becomes
    entitled to retired pay--
                ``(1) if the member is married, the member and the member's
            spouse shall be informed of the elections available under
            section 1448(a) of this title and the effects of such elections;
            and
                ``(2) if the notification referred to in section
            1448(a)(3)(E) of this title is required, any former spouse of
            the member shall be informed of the elections available and the
            effects of such elections.

        ``(c) Procedure for Depositing Certain Receipts.--Regulations
    prescribed under this section shall establish procedures for depositing
    the amounts referred to in sections 1448(g), 1450(k)(2), and 1452(d) of
    this title.
        ``(d) Payments to Guardians and Fiduciaries.--
                ``(1) In general.--Regulations prescribed under this section
            shall provide procedures for the payment of an annuity under
            this subchapter in the case of--

    [[Page 110 STAT. 2578]]

                        ``(A) a person for whom a guardian or other
                    fiduciary has been appointed; and
                        ``(B) a minor, mentally incompetent, or otherwise
                    legally disabled person for whom a guardian or other
                    fiduciary has not been appointed.
                ``(2) Authorized procedures.--The regulations under
            paragraph (1) may include provisions for the following:
                        ``(A) In the case of an annuitant referred to in
                    paragraph (1)(A), payment of the annuity to the
                    appointed guardian or other fiduciary.
                        ``(B) In the case of an annuitant referred to in
                    paragraph (1)(B), payment of the annuity to any person
                    who, in the judgment of the Secretary concerned, is
                    responsible for the care of the annuitant.
                        ``(C) Subject to subparagraphs (D) and (E), a
                    requirement for the payee of an annuity to spend or
                    invest the amounts paid on behalf of the annuitant
                    solely for benefit of the annuitant.
                        ``(D) Authority for the Secretary concerned to
                    permit the payee to withhold from the annuity payment
                    such amount, not in excess of 4 percent of the annuity,
                    as the Secretary concerned considers a reasonable fee
                    for the fiduciary services of the payee when a court
                    appointment order provides for payment of such a fee to
                    the payee for such services or the Secretary concerned
                    determines that payment of a fee to such payee is
                    necessary in order to obtain the fiduciary services of
                    the payee.
                        ``(E) Authority for the Secretary concerned to
                    require the payee to provide a surety bond in an amount
    sufficient to protect the interests of the annuitant and to pay for such
    bond out of the annuity.
                        ``(F) A requirement for the payee of an annuity to
                    maintain and, upon request, to provide to the Secretary
                    concerned an accounting of expenditures and investments
                    of amounts paid to the payee.
                        ``(G) In the case of an annuitant referred to in
                    paragraph (1)(B)--
                              ``(i) procedures for determining incompetency
                          and for selecting a payee to represent the
                          annuitant for the purposes of this section,
                          including provisions for notifying the annuitant
                          of the actions being taken to make such a
                          determination and to select a representative
                          payee, an opportunity for the annuitant to review
                          the evidence being considered, and an opportunity
                          for the annuitant to submit additional evidence
                          before the determination is made; and
                              ``(ii) standards for determining incompetency,
                          including standards for determining the
                          sufficiency of medical evidence and other
                          evidence.
                        ``(H) Provisions for any other matter that the
                    President considers appropriate in connection with the
                    payment of an annuity in the case of a person referred
                    to in paragraph (1).
                ``(3) Legal effect of payment to guardian or fiduciary.--An
            annuity paid to a person on behalf of an annuitant in accordance
            with the regulations prescribed pursuant to paragraph (1)
            discharges the obligation of the United States for

    [[Page 110 STAT. 2579]]

            payment to the annuitant of the amount of the annuity so
            paid.''.
    SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS TO BE
                            EFFECTIVE CONCURRENTLY WITH PAYMENT OF
                            RETIRED PAY COST-OF-LIVING INCREASES.

        (a) Survivor Benefit Plan.--Section 1452(h) of title 10, United
    States Code, as amended by section 634, is amended by adding at the end
    the following new paragraph:
                ``(2) Coordination when payment of increase in retired pay
            is delayed by law.--
                        ``(A) In general.--Notwithstanding paragraph (1),
                    when the initial payment of an increase in retired pay
                    under section 1401a of this title (or any other
                    provision of law) to a person is for a month that begins
                    later than the effective date of that increase by reason
                    of the application of subsection (b)(2)(B) of such
                    section (or section 631(b) of Public Law 104-106 (110
                    Stat. 364)), then the amount of the reduction in the
                    person's retired pay shall be effective on the date of
                    that initial payment of the increase in retired pay
                    rather than the effective date of the increase in
                    retired pay.
                        ``(B) Delay not to affect computation of annuity.--
                    Subparagraph (A) may not be construed as delaying, for
                    purposes of determining the amount of a monthly annuity
                    under section 1451 of this title, the effective date of
                    an increase in a base amount under subsection (h) of
                    such section from the effective date of an increase in
                    retired pay under section 1401a of this title to the
                    date on which the initial payment of that increase in
                    retired pay is made in accordance with subsection
                    (b)(2)(B) of such section.''.

        (b) <<NOTE: Applicability. 10 USC 1452 note.>>  Effective Date.--The
    amendment made by subsection (a) shall apply with respect to retired pay
    payable for months beginning on or after the date of the enactment of
    this Act.
    SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER SPOUSES'
                            PROTECTION ACT.

        (a) Manner of Service of Process.--Subsection (b)(1)(A) of section
    1408 of title 10, United States Code, is amended by striking out
    ``certified or registered mail, return receipt requested'' and inserting
    in lieu thereof ``facsimile or electronic transmission or by mail''.
        (b) Subsequent Court Order From Another State.--Subsection (d) of
    such section is amended by adding at the end the following new
    paragraph:
        ``(6)(A) The Secretary concerned may not accept service of a court
    order that is an out-of State modification, or comply with the
    provisions of such a court order, unless the court issuing that order
    has jurisdiction in the manner specified in subsection (c)(4) over both
    the member and the spouse or former spouse involved.
        ``(B) A court order shall be considered to be an out-of-State
    modification for purposes of this paragraph if the order--
                ``(i) modifies a previous court order under this section
            upon which payments under this subsection are based; and
                ``(ii) is issued by a court of a State other than the State
            of the court that issued the previous court order.''.

    [[Page 110 STAT. 2580]]

    SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF
                            RETIRED PAY TO ENHANCE CIVIL SERVICE
                            RETIREMENT ANNUITY.

        (a) Civil Service Retirement and Disability System.--(1) Subsection
    (c) of section 8332 of title 5, United States Code, is amended by adding
    at the end the following new paragraph:
        ``(4) If, after January 1, 1997, an employee or Member waives
    retired pay that is subject to a court order for which there has been
    effective service on the Secretary concerned for purposes of section
    1408 of title 10, the military service on which the retired pay is based
    may be credited as service for purposes of this subchapter only if the
    employee or Member authorizes the Director to deduct and withhold from
    the annuity
    payable to the employee or Member under this subchapter an amount equal
    to the amount that, if the annuity payment was instead a payment of the
    employee's or Member's retired pay, would have been deducted and
    withheld and paid to the former spouse covered by the court order under
    such section 1408. The amount deducted and withheld under this paragraph
    shall be paid to that former spouse. The period of civil service
    employment by the employee or Member shall not be taken into
    consideration in determining the amount of the deductions and
    withholding or the amount of the payment to the former
    spouse. <<NOTE: Regulations.>>  The Director of the Office of Personnel
    Management shall prescribe regulations to carry out this paragraph.''.

        (2) Paragraph (1) of such subsection is amended by striking out
    ``Except as provided in paragraph (2)'' and inserting in lieu thereof
    ``Except as provided in paragraphs (2) and (4)''.
        (b) Federal Employees' Retirement System.--(1) Subsection (c) of
    section 8411 of title 5, United States Code, is amended by adding at the
    end the following new paragraph:
        ``(5) If, after January 1, 1997, an employee or Member waives
    retired pay that is subject to a court order for which there has been
    effective service on the Secretary concerned for purposes of section
    1408 of title 10, the military service on which the retired pay is based
    may be credited as service for purposes of this chapter only if the
    employee or Member authorizes the Director to deduct and withhold from
    the annuity payable to the employee or Member under this subchapter an
    amount equal to the amount that, if the annuity payment was instead a
    payment of the employee's or Member's retired pay, would have been
    deducted and withheld and paid to the former spouse covered by the court
    order under such section 1408. The amount deducted and withheld under
    this paragraph shall be paid to that former spouse. The period of civil
    service employment by the employee or Member shall not be taken into
    consideration in determining the amount of the deductions and
    withholding or the amount of the payment to the former spouse.
    The <<NOTE: Regulations.>>  Director of the Office of Personnel
    Management shall prescribe regulations to carry out this paragraph.''.

        (2) Paragraph (1) of such subsection is amended by striking ``Except
    as provided in paragraph (2) or (3)'' and inserting ``Except as provided
    in paragraphs (2), (3), and (5)''.
        (c) <<NOTE: 5 USC 8332 note.>>  Effective Date.--The amendments made
    by subsections (a) and (b) shall take effect on January 1, 1997.

    [[Page 110 STAT. 2581]]

    SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME
                            WIDOWS.

        (a) Adjusted Annual Income Limitation Appliable to Eligibility for
    Income Supplement.--(1) Section 4 of Public Law 92-425 (10 U.S.C. 1448
    note) is amended--
                (A) in subsection (a)(3), by striking out ``$2,340'' and
            inserting in lieu thereof ``the maximum annual rate of pension
            in effect under section 1541(b) of title 38, United States
            Code''; and
                (B) in the first sentence of subsection (b), by striking out
            ``$2,340 a year'' and inserting in lieu thereof ``the maximum
            annual rate of pension in effect under section 1541(b) of title
            38, United States Code''.

        (2) Subsection (c) of such section is repealed.
        (b) Payments To Be Made by Secretary of Veterans Affairs.--Such
    section is further amended by adding at the end the following new
    subsection:
        ``(e)(1) Payment of annuities under this section shall be made by
    the Secretary of Veterans Affairs. If appropriate for administrative
    convenience (or otherwise determined appropriate by the Secretary of
    Veterans Affairs), that Secretary may combine a payment to any person
    for any month under this section with any other payment for that month
    under laws administered by the Secretary so as to provide that person
    with a single payment for that month.
        ``(2) The Secretary concerned shall annually transfer to the
    Secretary of Veterans Affairs such amounts as may be necessary for
    payments by the Secretary of Veterans Affairs under this section and for
    costs of the Secretary of Veterans Affairs in administering this
    section. Such transfers shall be made from amounts that would otherwise
    be used for payment of annuities by the Secretary concerned under this
    section. The authority to make such a transfer is in addition to any
    other authority of the Secretary concerned to transfer funds for a
    purpose other than the purpose for which the funds were originally made
    available. In the case of a transfer by the Secretary of a military
    department, the provisions of section 2215 of title 10, United States
    Code, do not apply.
        ``(3) <<NOTE: Notification.>>  The Secretary concerned shall
    promptly notify the Secretary of Veterans Affairs of any change in
    beneficiaries under this section.''.

        (c) Clarification of Continuing Eligiblity for Department of
    Veterans Affairs Pension.--Such section, as amended by subsection
    (a)(2), is further amended by inserting after subsection (b) the
    following new subsection (c):
        ``(c) The amount of an annuity payable under this section, although
    counted as income in determining the amount of any pension described in
    subsection (a)(2) of this section, shall not be considered to affect the
    eligiblity of the recipient of such annuity for such pension, even
    though, as a result of including the amount of the annuity as income, no
    amount of such pension is due.''.
        (d) <<NOTE: Applicability. 10 USC 1448 note.>>  Effective Date.--The
    amendments made by this section take effect on July 1, 1997, and apply
    with respect to payments of benefits for any month after June 1997.

    [[Page 110 STAT. 2582]]

                            Subtitle E--Other Matters

    SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED OR
                            RETAINER PAY.

        (a) Allotments Authorized.--Section 701 of title 37, United States
    Code, is amended by striking out subsection (d) and inserting in lieu
    thereof the following new subsections:
        ``(d) <<NOTE: Regulations.>>  Under regulations prescribed by the
    Secretary of Defense, a member of the Army, Navy, Air Force, or Marine
    Corps and a contract surgeon of the Army, Navy, or Air Force may make
    allotments from the pay of the member or surgeon for the purpose of
    supporting relatives or for any other purpose that the Secretary
    considers proper. Such allotments may include a maximum of six
    allotments considered to be discretionary under such regulations. For a
    member or former member entitled to retired or retainer pay, a maximum
    of six discretionary allotments authorized during active military
    service may be continued into retired status, and new discretionary
    allotments may be authorized so long as the total number of
    discretionary allotments does not exceed six.

        ``(e) If an allotment made under subsection (d) is paid to the
    allottee before the disbursing officer receives a notice of
    discontinuance from the officer required by regulation to furnish the
    notice, the amount of the allotment shall be credited to the disbursing
    officer. If an allotment is erroneously paid because the officer
    required by regulation to so report failed to report the death of the
    allotter or any other fact that makes the allotment not payable, the
    amount of the payment not recovered from the allottee shall, if
    practicable, be collected by the Secretary concerned from the officer
    who failed to make the report.''.
        (b) <<NOTE: 37 USC 701 note.>>  Issuance of Regulations.--The
    Secretaries of the military departments shall prescribe regulations
    under subsection (d) of section 701 of title 37, United States Code, as
    added by subsection (a), not later than October 1, 1997.
    SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN
                            ADOPTIONS THROUGH PRIVATE PLACEMENTS.

        (a) Department of Defense.--Section 1052(g) of title 10, United
    States Code, is amended--
                (1) in paragraph (1), by striking out ``State or local
            government'' and all that follows through the period at the end
            of the first sentence and inserting in lieu thereof ``qualified
            adoption agency.''; and
                (2) by adding at the end the following new paragraph:
                ``(3) The term `qualified adoption agency' means any of the
            following:
                        ``(A) A State or local government agency which has
                    responsibility under State or local law for child
                    placement through adoption.
                        ``(B) A nonprofit, voluntary adoption agency which
                    is authorized by State or local law to place children
                    for adoption.
                        ``(C) Any other source authorized by a State to
                    provide adoption placement if the adoption is supervised
                    by a court under State or local law.''.

        (b) Coast Guard.--Section 514(g) of title 14, United States Code, is
    amended--

    [[Page 110 STAT. 2583]]

                (1) in paragraph (1), by striking out ``State or local
            government'' and all that follows through the period at the end
            of the first sentence and inserting in lieu thereof ``qualified
            adoption agency.''; and
                (2) by adding at the end the following new paragraph:
                ``(3) The term `qualified adoption agency' means any of the
            following:
                        ``(A) A State or local government agency which has
                    responsibility under State or local law for child
                    placement through adoption.
                        ``(B) A nonprofit, voluntary adoption agency which
                    is authorized by State or local law to place children
                    for adoption.
                        ``(C) Any other source authorized by a State to
                    provide adoption placement if the adoption is supervised
                    by a court under State or local law.''.
    SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX
                            PURPOSES FROM CERTAIN SEPARATION PAY.

        (a) In General.--Section 1174(h)(2) of title 10, United States Code,
    is amended by inserting before the period at the end of the first
    sentence the following: ``, less the amount of Federal income tax
    withheld from such pay (such withholding being at the flat withholding
    rate for Federal income tax withholding, as in effect pursuant to
    regulations prescribed under chapter 24 of the Internal Revenue Code of
    1986)''.
        (b) <<NOTE: Applicability. 10 USC 1174 note.>>  Effective Date.--The
    amendments made by this section shall take effect on October 1, 1996,
    and shall apply to payments of separation pay, severance pay, or
    readjustment pay that are made after September 30, 1996.
    SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FURNISHING
                            CLOTHING OR ALLOWANCES FOR ENLISTED
                            NATIONAL GUARD TECHNICIANS.

        Section 418(c) of title 37, United States Code, is amended by
    striking out ``for which a uniform allowance is paid under section 415
    or 416 of this title'' and inserting in lieu thereof ``for which
    clothing is furnished or a uniform allowance is paid under this
    section''.
    SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF
                            BACKPAY TO CERTAIN PERSONS.

        Section 634 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 366) is amended--
                (1) in subsection (b)(1), by striking out ``Island of
            Bataan'' and inserting in lieu thereof ``peninsula of Bataan or
            island of Corregidor''; and
                (2) in subsection (c), by inserting after the first sentence
            the following: ``For the purposes of this subsection, the
            Secretary of War shall be deemed to have determined
    that conditions in the Philippines during the specified period justified
    payment under applicable regulations of quarters and subsistence
    allowances at the maximum special rate for duty where emergency
    conditions existed.''.

    [[Page 110 STAT. 2584]]

    SEC. 656. <<NOTE: 50 USC app. 2005 note.>>  COMPENSATION FOR
                            PERSONS AWARDED PRISONER OF WAR MEDAL WHO
                            DID NOT PREVIOUSLY RECEIVE COMPENSATION AS
                            A PRISONER OF WAR.

        (a) Authority To Make Payments.--The Secretary of the military
    department concerned shall make payments in the manner provided in
    section 6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) to (or on
    behalf of) any person described in subsection (b) who submits an
    application for such payment in accordance with subsection (d).
        (b) Eligible Persons.--This section applies with respect to a member
    or former member of the Armed Forces who--
                (1) has received the prisoner of war medal under section
            1128 of title 10, United States Code; and
                (2) has not previously received a payment under section 6 of
            the War Claims Act of 1948 (50 U.S.C. App. 2005) with respect to
            the period of internment for which the person received the
            prisoner of war medal.

        (c) Amount of Payment.--The amount of the payment to any person
    under this section shall be determined based upon the provisions of
    section 6 of the War Claims Act of 1948 that are applicable with respect
    to the period of time during which the internment occurred for which the
    person received the prisoner of war medal.
        (d) One-Year Period for Submission of Applications.--A payment may
    be made by reason of this section only in the case of a person who
    submits an application to the Secretary concerned for such payment
    during the one-year period beginning on the date of the enactment of
    this Act. Any such application shall be submitted in such form and
    manner as the Secretary may require.
    SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND INTERNED BY
                            NORTH VIETNAM.

        (a) Payment Authorized to Eligible Persons.--(1) Using amounts made
    available under subsection (g), the Secretary of Defense shall make a
    payment under this section to a person who demonstrates to the
    satisfaction of the Secretary of Defense that the person was captured
    and incarcerated by the Democratic Republic of Vietnam as a result of
    the participation by the person in operations conducted under OPLAN 34A
    or its predecessor.
        (2) Using amounts made available under subsection (g), the Secretary
    of Defense shall also make a payment under this section to a person who
    demonstrates to the satisfaction of the Secretary of Defense that the
    person--
                (A) served as a Vietnamese operative pursuant to
            OPLAN 35;
                (B) was captured and incarcerated by North Vietnamese forces
            as a result of the participation by the person in operations in
            Laos or along the Lao-Vietnamese border pursuant to OPLAN 35;
                (C) remained in captivity after 1973 (or died in
            captivity); and
                (D) has not previously received payment from the United
            States for the period spent in captivity.

        (3) A payment may not be made under this section to, or with respect
    to, a person who the Secretary of Defense determines, based on the
    available evidence, served in the Peoples Army of Vietnam or provided
    active assistance to the Government of the

    [[Page 110 STAT. 2585]]

    Democratic Republic of Vietnam during the period from 1958 through 1975.
        (b) Effect of Death of Eligible Person.--In the case of a decedent
    who would have been eligible for a payment under this section if alive,
    the documentation required under subsection (a) may be provided by
    survivors of the decedent, and the payment under this section shall be
    made to survivors of the decedent in the following order:
                (1) To the surviving spouse.
                (2) If there is no surviving spouse, to the surviving
            children (including natural children and adopted children) of
            the decedent, in equal shares.

        (c) Amount Payable.--The amount payable to, or with respect to, a
    person under this section is $40,000. If a person can demonstrate to the
    Secretary of Defense that confinement or incarceration exceeded 20
    years, the Secretary may pay an additional $2,000 for each full year in
    excess of 20 (and a proportionate amount for a partial year), but the
    total amount paid to, or with respect to, a person under this section
    may not exceed $50,000.
        (d) Time Limitations.--(1) To be eligible for a payment under this
    section, a claimant must file a claim for such payment with the
    Secretary of Defense within 18 months of the effective date of the
    regulations implementing this section.
        (2) Not later than 18 months after receiving a claim for payment
    under this section, the Secretary shall determine the eligibility of the
    claimant for payment of the claim. Subject to subsection (f), if the
    Secretary determines that the claimant is eligible for the payment, the
    Secretary shall promptly pay the claim.
        (e) Regulations.--(1) The Secretary of Defense shall prescribe
    regulations to carry out this section. Such regulations shall include
    procedures by which persons may submit claims for payment under this
    section. Such regulations shall be prescribed not later than six months
    after the date of the enactment of this Act.
        (2) The Secretary of Defense may establish guidelines regarding what
    constitutes adequate documentation for determining whether a person
    satisfies the requirements specified in subsection (a) regarding
    eligibility for a payment under this section. Such guidelines shall be
    established in consultation with the heads of other agencies of the
    Government involved with OPLAN 34A or its predecessor or OPLAN 35.
        (f) Limitation on Disbursement.--(1) The actual disbursement of a
    payment under this section may be made only
    to the person who is eligible for the payment under subsection (a) or
    (b) and only--
                (A) upon the appearance of that person, in person, at any
            designated disbursement office in the United States or its
            territories; or
                (B) at such other location or in such other manner as that
            person may request in writing.

        (2) In the case of a claim approved for payment but not disbursed as
    a result of operation of paragraph (1), the Secretary of Defense shall
    hold the funds in trust for the person in an interest bearing account
    until such time as the person makes an election under such paragraph.
        (g) Funding.--To the extent provided in advance for this section in
    appropriations Acts, of amounts authorized to be appropriated

    [[Page 110 STAT. 2586]]

    under section 301(24) for this purpose, $20,000,000 shall be available
    until expended for payments under this section.
        (h) Payment in Full Satisfaction of Claims Against the United
    States.--The acceptance of payment by, or with respect to, a person
    under this section shall be in full satisfaction of all claims by or on
    behalf of that individual against the United States arising from
    operations under OPLAN 34A or its predecessor or OPLAN 35.
        (i) Attorney Fees.--Notwithstanding any contract, the representative
    of a person may not receive, for services rendered in connection with
    the claim of, or with respect to, a person under this section, more than
    10 percent of a payment made under this section on that claim.
        (j) No Right to Judicial Review.--All determinations by the
    Secretary of Defense pursuant to this section are final and conclusive,
    notwithstanding any other provision of law. Claimants under this section
    have no right to judicial review, and such review is specifically
    precluded.
        (k) Reports to Congress.--(1) Not later than 24 months after the
    date of the enactment of this Act, the Secretary of Defense shall submit
    to Congress a report on the payment of claims under this section.
        (2) After the submission of the report under paragraph (1), the
    Secretary shall periodically submit to Congress a report on the status
    of payment of claims under this section.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Preventive health care screening for colon and prostate
                        cancer.
    Sec. 702. Implementation of requirement for Selected Reserve dental
                        insurance plan.
    Sec. 703. Dental insurance plan for military retirees and unremarried
                        surviving spouses and certain other dependents of
                        military retirees.
    Sec. 704. Plan for health care coverage for children with medical
                        conditions caused by parental exposure to chemical
                        munitions while serving as members of the Armed
                        Forces.

                           Subtitle B--TRICARE Program

    Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
    Sec. 712. Improved information exchange between military treatment
                        facilities and TRICARE program contractors.
    Sec. 713. Plans for medicare subvention demonstration programs.

               Subtitle C--Uniformed Services Treatment Facilities

    Sec. 721. Definitions.
    Sec. 722. Inclusion of designated providers in uniformed services health
                        care
                        delivery system.
    Sec. 723. Provision of uniform benefit by designated providers.
    Sec. 724. Enrollment of covered beneficiaries.
    Sec. 725. Application of CHAMPUS payment rules.
    Sec. 726. Payments for services.
    Sec. 727. Repeal of superseded authorities.

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

    Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically
                        necessary treatment in connection with certain
                        clinical trials.
    Sec. 732. Exception to maximum allowable payments to individual health-
                        care
                        providers under CHAMPUS.
    Sec. 733. Codification of annual authority to credit CHAMPUS refunds to
                        current year appropriation.

    [[Page 110 STAT. 2587]]

    Sec. 734. Exceptions to requirements regarding obtaining
                        nonavailability-of-health-care statements.
    Sec. 735. Enhancement of third-party collection and secondary payer
                        authorities under CHAMPUS.

                            Subtitle E--Other Matters

    Sec. 741. Alternatives to active duty service obligation under Armed
                        Forces Health Professions Scholarship and Financial
                        Assistance program and Uniformed Services University
                        of the Health Sciences.
    Sec. 742. External peer review for defense health program extramural
                        medical
                        research involving human subjects.
    Sec. 743. Independent research regarding Gulf War syndrome.
    Sec. 744. Comptroller General review of health care activities of
                        Department of
                        Defense relating to Gulf War illnesses.
    Sec. 745. Report regarding specialized treatment facility program.
    Sec. 746. Study of means of ensuring uniformity in provision of medical
                        and dental care for members of reserve components.
    Sec. 747. Sense of Congress regarding tax treatment of Armed Forces
                        Health Professions Scholarship and Financial
                        Assistance program.

                        Subtitle A--Health Care Services

    SEC. 701. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND PROSTATE
                            CANCER.

        (a) Members and Former Members.--(1) Section 1074d of title 10,
    United States Code, is amended--
                (A) in subsection (a)--
                        (i) by inserting ``(1)'' before ``Female''; and
                        (ii) by adding at the end the following new
                    paragraph:

        ``(2) Male members and former members of the uniformed services
    entitled to medical care under section 1074 or 1074a of this title shall
    also be entitled to preventive health care screening for colon or
    prostate cancer at such intervals and using such screening methods as
    the administering Secretaries consider appropriate.''; and
                (B) in subsection (b), by adding at the end the following
            new paragraph:
                ``(8) Colon cancer screening, at the intervals and using the
            screening methods prescribed under subsection (a)(2).''.

        (2)(A) The heading of such section is amended to read as follows:
    ``Sec. 1074d. Certain primary and preventive health care services

        (B) The item relating to such section in the table of sections at
    the beginning of chapter 55 of such title is amended to read as follows:

    ``1074d. Certain primary and preventive health care services.''.

        (b) Dependents.--(1) Section 1077(a) of such title is amended by
    adding at the end the following new paragraph:
                ``(14) Preventive health care screening for colon or
            prostate cancer, at the intervals and using the screening
            methods prescribed under section 1074d(a)(2) of this title.''.

        (2) Section 1079(a)(2) of such title is amended--
                (A) in the matter preceding subparagraph (A), by inserting
            ``the schedule and method of colon and prostate cancer
            screenings,'' after ``pap smears and mammograms,''; and
                (B) in subparagraph (B), by inserting ``or colon and
            prostate cancer screenings'' after ``pap smears and
            mammograms''.

    [[Page 110 STAT. 2588]]

    SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE
                            DENTAL INSURANCE PLAN.

        (a) Implementation by Contract.--Subsection (a) of section 1076b of
    title 10, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(a) Authority To Establish
            Plan.--'';
                (2) by designating the third sentence as paragraph
            (3); and
                (3) by inserting after paragraph (1), as designated by
            paragraph (1) of this subsection, the following new paragraph:

        ``(2) The Secretary shall provide benefits under the plan through
    one or more contracts awarded after full and open competition.''.
        (b) <<NOTE: Procedures.>> Collection of Premiums of Members Not
    Receiving Basic Pay.--Subsection (b)(3) of such section is amended by
    adding at the end the following: ``In the case of a member who does not
    receive basic pay, the Secretary of Defense shall establish procedures
    for the collection of the member's share of the premium for coverage.''.

        (c) Schedule for Implementation.--Section 705(b) of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 373; 10 U.S.C. 1076b note) is amended--
                (1) in the first sentence, by striking out ``October 1,
            1996'' and inserting in lieu thereof ``October 1, 1997''; and
                (2) by striking out ``fiscal year 1996'' both places it
            appears and inserting in lieu thereof ``fiscal years 1996 and
            1997''.
    SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND
                            UNREMARRIED SURVIVING SPOUSES AND CERTAIN
                            OTHER DEPENDENTS OF MILITARY RETIREES.

        (a) Establishment of Dental Plan.--(1) Chapter 55 of title 10,
    United States Code, is amended by inserting after section 1076b the
    following new section:
     ``Sec. 1076c. Dental insurance plan: certain retirees and their
                          surviving spouses and other dependents

        ``(a) Requirement for Plan.--The Secretary of Defense shall
    establish a dental insurance plan for military retirees, certain
    unremarried surviving spouses, and dependents in accordance with this
    section.
        ``(b) Persons Eligible for Plan.--The following persons are eligible
    to enroll in the dental insurance plan established under subsection (a):
                ``(1) Members of the Armed Forces who are entitled to
            retired pay.
                ``(2) Members of the Retired Reserve who would be entitled
            to retired pay under chapter 1223 of this title but for being
            under 60 years of age.
                ``(3) Eligible dependents of a member described in paragraph
            (1) or (2) who are covered by the enrollment of the member in
            the plan.
                ``(4) The unremarried surviving spouse and eligible child
            dependents of a deceased member--
                        ``(A) who dies while in a status described in
                    paragraph (1) or (2); or
                        ``(B) who is described in section 1448(d)(1) of this
                    title.

    [[Page 110 STAT. 2589]]

        ``(c) Premiums.--(1) A member enrolled in the dental insurance plan
    established under subsection (a) shall pay the premiums charged for the
    insurance coverage.
        ``(2) The amount of the premiums payable by a member entitled to
    retired pay shall be deducted and withheld from the retired pay and
    shall be disbursed to pay the premiums. The regulations prescribed under
    subsection (h) shall specify the procedures for payment of the premiums
    by other enrolled members and by enrolled surviving spouses.
        ``(d) Benefits Available Under the Plan.--The dental insurance plan
    established under subsection (a) shall provide benefits for basic dental
    care and treatment, including diagnostic services, preventative
    services, basic restorative services (including endodontics), surgical
    services, and emergency services.
        ``(e) Coverage.--(1) The Secretary shall prescribe a minimum
    required period for enrollment by a member or surviving spouse in the
    dental insurance plan established under subsection (a).
        ``(2) The dental insurance plan shall provide for voluntary
    enrollment of participants and shall authorize a member or eligible
    unremarried surviving spouse to enroll for self only or for self and
    eligible dependents.
        ``(f) Termination of Enrollment.--The Secretary shall terminate the
    enrollment of any enrollee, and any eligible dependents of the enrollee
    covered by the enrollment, in the dental insurance plan established
    under subsection (a) upon the occurrence of the following:
                ``(1) In the case of an enrollment under subsection (b)(1),
            termination of the member's entitlement to retired pay.
                ``(2) In the case of an enrollment under subsection (b)(2),
            termination of the member's status as a member of the Retired
            Reserve.
                ``(3) In the case of an enrollment under subsection (b)(4),
            remarriage of the surviving spouse.

        ``(g) Continuation of Dependents' Enrollment Upon Death of
    Enrollee.--Coverage of a dependent in the dental insurance plan
    established under subsection (a) under an enrollment of a member or a
    surviving spouse who dies during the period of enrollment shall continue
    until the end of that period and may be renewed by (or for) the
    dependent, so long as the premium paid is sufficient to cover
    continuation of the dependent's enrollment. The Secretary may terminate
    coverage of the dependent when the premiums paid are no longer
    sufficient to cover continuation of the enrollment. The Secretary shall
    prescribe in regulations under subsection (h) the parties responsible
    for paying the remaining premiums due on the enrollment and the manner
    for collection of the premiums.
        ``(h) Regulations.--The dental insurance plan established under
    subsection (a) shall be administered under regulations prescribed by the
    Secretary of Defense, in consultation with the Secretary of
    Transportation.
        ``(i) Definitions.--In this section:
                ``(1) The term `eligible dependent' means a dependent
            described in subparagraph (A), (D), or (I) of section 1072(2) of
            this title.
                ``(2) The term `eligible child dependent' means a dependent
            described in subparagraph (D) or (I) of section 1072(2) of this
            title.
                ``(3) The term `retired pay' includes retainer pay.''.

    [[Page 110 STAT. 2590]]

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1076b the
    following new item:

    ``1076c. Dental insurance plan: certain retirees and their surviving
               spouses and other dependents.''.

        (b) <<NOTE: 10 USC 1076c note.>>  Implementation.--Beginning not
    later than October 1, 1997, the Secretary of Defense shall--
                (1) offer members of the Armed Forces and other persons
            described in subsection (b) of section 1076c of title 10, United
            States Code (as added by subsection (a)(1) of this section), the
            opportunity to enroll in the dental insurance plan required
            under that section; and
                (2) begin to provide benefits under the plan.
    SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH MEDICAL
                            CONDITIONS CAUSED BY PARENTAL EXPOSURE TO
                            CHEMICAL MUNITIONS WHILE SERVING AS
                            MEMBERS OF THE ARMED FORCES.

        (a) Plan Required.--The Secretary of Defense, in coordination with
    the Secretary of Veterans Affairs, shall develop a plan for ensuring the
    provision of medical care to any natural child of a member of the Armed
    Forces (including former members and members discharged or otherwise
    separated from active duty) who has a congenital defect or catastrophic
    illness, proven to a reasonable degree of scientific certainty on the
    basis of scientific research to have resulted from exposure of the
    member to a chemical warfare agent or other hazardous material to which
    the member was exposed during active military service.
        (b) Submission to Congress.--Not later than 180 days after the date
    of the enactment of this Act, the Secretary of Defense shall submit the
    plan developed under subsection (a) to Congress.
        (c) <<NOTE: Regulations.>>  Definitions of Congenital Defect and
    Catastrophic Illness.--The Secretary of Defense shall prescribe in
    regulations a definition of the terms ``congenital defect'' and
    ``catastrophic illness'' for the purposes of this section.

                           Subtitle B--TRICARE Program

    SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME
                            ENROLLEES.

        Section 1079(h)(4) of title 10, United States Code, is amended in
    the second sentence by striking out ``emergency''.
    SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY TREATMENT
                            FACILITIES AND TRICARE PROGRAM
                            CONTRACTORS.

        (a) Uniform Interfaces.--The Secretary of Defense shall ensure that
    the automated medical information system being developed by the
    Department of Defense (known as the Composite Health Care System)
    provides for uniform interfaces between information systems of military
    treatment facilities and private contractors under managed care programs
    of the TRICARE program. The uniform interface shall provide for a full
    electronic two-way exchange of health care information between the
    military treatment facilities and contractor information systems,
    including enrollment information, information regarding eligibility
    determinations, provider net

    [[Page 110 STAT. 2591]]

    work information, appointment information, and information regarding the
    existence of third-party payers.
        (b) Amendment of Existing Contracts.--To assure a single consistent
    source of information throughout the health care delivery system of the
    uniformed services, the Secretary of Defense shall amend each TRICARE
    program contract, with the consent of the TRICARE program contractor and
    notwithstanding any requirement for competition, to require the
    contractor--
                (1) to use software furnished under the Composite Health
            Care System to record military treatment facility provider
            appointments; and
                (2) to record TRICARE program enrollment through direct use
            of the Composite Health Care System software or through the
            uniform two-way interface between the contractor and military
            treatment facilities systems, where applicable.

        (c) Definition of TRICARE Program.--For purposes of this section,
    the term ``TRICARE program'' means the managed health care program that
    is established by the Secretary of Defense under the authority of
    chapter 55 of title 10, United States Code, principally section 1097 of
    such title, and includes the competitive selection of contractors to
    financially underwrite the delivery of health care services under the
    Civilian Health and Medical Program of the Uniformed Services.
    SEC. 713. PLANS <<NOTE: Reports.>> FOR MEDICARE SUBVENTION
                            DEMONSTRATION
                            PROGRAMS.

        (a) Program for Enrollment in TRICARE Managed Care Option.--Not
    later than September 6, 1996, the Secretary of Defense and the Secretary
    of Health and Human Services shall jointly submit to Congress and the
    President a report containing a specific plan (including the
    recommendations of the Secretaries required under subsection (b))
    regarding the establishment of a demonstration program under which--
                (1) covered beneficiaries under chapter 55 of title 10,
            United States Code, who are also entitled to benefits under part
            A of the medicare program are permitted to enroll in the managed
            care option of the TRICARE program; and
                (2) the Secretary of Health and Human Services reimburses
            the Secretary of Defense from the Medicare program on a
            capitated basis for the costs of providing health care services
            to military retirees who enroll.

        (b) Specific Elements of Report.--The report shall include the
    following:
                (1) The number of covered beneficiaries described in
            subsection (a) who are projected to participate in the
            demonstration program and the minimum number of such
            participants necessary to conduct the demonstration program
            effectively.
                (2) A plan for notifying such covered beneficiaries of their
            eligibility for enrollment in the demonstration program and for
            any other matters connected with enrollment.
                (3) A recommendation for the duration of the demonstration
            program.
                (4) A recommendation for the geographic regions in which the
            demonstration program should be conducted.
                (5) The appropriate level of capitated reimbursement, and a
            schedule for such reimbursement, from the Medicare program

    [[Page 110 STAT. 2592]]

            to the Department of Defense for health care services provided
            enrollees in the demonstration program.
                (6) An estimate of the amounts that, in the absence of the
            demonstration program, would be required to be allocated by the
            Department of Defense for the provision of health care services
            to covered beneficiaries described in subsection (a) who reside
            in the regions in which the demonstration program is proposed to
            be conducted.
                (7) An assessment of revisions to the allocation estimated
            under paragraph (6) that would result from the conduct of the
            demonstration program in such regions.
                (8) An estimate of the cost to the Department of Defense and
            to the Medicare program of providing health care services to
            covered beneficiaries described in subsection (a) who enroll in
            the demonstration program.
                (9) An assessment of the likelihood of cost shifting among
            the Department of Defense and the Medicare program under the
            demonstration program.
                (10) A proposal for mechanisms for reconciling and
            reimbursing any improper payments among the Department of
            Defense and the Medicare program under the demonstration
            program.
                (11) A methodology for evaluating the demonstration program,
            including cost analyses.
                (12) As assessment of the extent to which the TRICARE
            program is prepared to meet requirements of the Medicare program
            for purposes of the demonstration program and the provisions of
            law or regulation that would have to be waived in order to
            facilitate the carrying out of the demonstration program.
                (13) An assessment of the impact of the demonstration
            program on military readiness.
                (14) Contingency plans for the provision of health care
            services under the demonstration program in the event of the
            mobilization of health care personnel.
                (15) A recommendation of the reports that the Department of
            Defense and the Department of Health and Human Services should
            submit to Congress describing the conduct of the demonstration
            program.

        (c) Program for Enrollment in TRICARE Fee-For-Service Option.--Not
    later than January 3, 1997, the Secretary of Defense and the Secretary
    of Health and Human Services shall jointly submit to Congress and the
    President a report on the feasibility and advisability of expanding the
    demonstration program referred to in subsection (a) so as to provide the
    Department of Defense with reimbursement from the Medicare program on a
    fee-for-service basis for health care services provided covered
    beneficiaries described in subsection (a) who enroll in the
    demonstration program. The report shall include a proposal for the
    expansion of the program if the expansion is determined to be advisable.

     Subtitle C-- <<NOTE: 10 USC 1073 note.>> Uniformed Services Treatment
    Facilities

    SEC. 721. DEFINITIONS.

        In this subtitle:

    [[Page 110 STAT. 2593]]

                (1) The term ``administering Secretaries'' means the
            Secretary of Defense, the Secretary of Transportation, and the
            Secretary of Health and Human Services.
                (2) The term ``agreement'' means the agreement required
            under section 722(b) between the Secretary of Defense and a
            designated provider.
                (3) The term ``capitation payment'' means an actuarially
            sound payment for a defined set of health care services that is
            established on a per enrollee per month basis.
                (4) The term ``covered beneficiary'' means a beneficiary
            under chapter 55 of title 10, United States Code, other than a
            beneficiary under section 1074(a) of such title.
                (5) The term ``designated provider'' means a public or
            nonprofit private entity that was a transferee of a Public
            Health Service hospital or other station under section 987 of
            the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35;
            42 U.S.C. 248b) and that, before the date of the enactment of
            this Act, was deemed to be a facility of the uniformed services
            for the purposes of chapter 55 of title 10, United States Code.
            The term includes any legal successor in interest of the
            transferee.
                (6) The term ``enrollee'' means a covered beneficiary who
            enrolls with a designated provider.
                (7) The term ``health care services'' means the health care
            services provided under the health plan known as the ``TRICARE
            PRIME'' option under the TRICARE program.
                (8) The term ``Secretary'' means the Secretary of Defense.
                (9) The term ``TRICARE program'' means the managed health
            care program that is established by the Secretary of Defense
            under the authority of chapter 55 of title 10, United States
            Code, principally section 1097 of such title, and includes the
            competitive selection of contractors to financially underwrite
            the delivery of health care services under the Civilian Health
            and Medical Program of the Uniformed Services.
    SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES
                            HEALTH CARE DELIVERY SYSTEM.

        (a) Inclusion in System.--The health care delivery system of the
    uniformed services shall include the designated providers.
        (b) Agreements to Provide Managed Health Care
    Services.--(1) After consultation with the other administering
    Secretaries, the Secretary of Defense shall negotiate and enter into an
    agreement with each designated provider under which the designated
    provider will provide health care services in or through managed care
    plans to covered beneficiaries who enroll with the designated provider.
        (2) The agreement shall be entered into on a sole source basis. The
    Federal Acquisition Regulation, except for those requirements regarding
    competition, issued pursuant to section 25(c) of the Office of Federal
    Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements
    as acquisitions of commercial items.
        (3) The implementation of an agreement is subject to availability of
    funds for such purpose.
        (c) Effective Date of Agreements.--(1) Unless an earlier effective
    date is agreed upon by the Secretary and the designated provider, the
    agreement shall take effect upon the later of the following:

    [[Page 110 STAT. 2594]]

                (A) The date on which a managed care support contract under
            the TRICARE program is implemented in the service area of the
            designated provider.
                (B) October 1, 1997.

        (2) Notwithstanding paragraph (1), the designated provider whose
    service area includes Seattle, Washington, shall implement its agreement
    as soon as the agreement permits.
        (d) Temporary Continuation of Existing Participation Agreements.--
    The Secretary shall extend the participation agreement of a designated
    provider in effect immediately before the date of the enactment of this
    Act under section 718(c) of the National Defense Authorization Act for
    Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c) until the
    agreement required by this section takes effect under subsection (c).
        (e) Service Area.--The Secretary may not reduce the size of the
    service area of a designated provider below the size of the service area
    in effect as of September 30, 1996.
        (f) Compliance With Administrative Requirements.--(1) Unless
    otherwise agreed upon by the Secretary and a designated provider, the
    designated provider shall comply with necessary and appropriate
    administrative requirements established by the Secretary for other
    providers of health care services and requirements established by the
    Secretary of Health and Human Services for risk-sharing contractors
    under section 1876 of the Social Security Act (42 U.S.C. 1395mm). The
    Secretary and the designated provider shall determine and apply only
    such administrative requirements as are minimally necessary and
    appropriate. A designated provider shall not be required to comply with
    a law or regulation of a State government requiring licensure as a
    health insurer or health maintenance organization.
        (2) A designated provider may not contract out more than five
    percent of its primary care enrollment without the approval of the
    Secretary, except in the case of primary care contracts between a
    designated provider and a primary care contractor in force on the date
    of the enactment of this Act.
    SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED
                            PROVIDERS.

        (a) Uniform Benefit Required.--A designated provider shall offer to
    enrollees the health benefit option prescribed and implemented by the
    Secretary under section 731 of the National Defense Authorization Act
    for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note),
    including accompanying cost-sharing requirements.
        (b) Time for Implementation of Benefit.--A designated provider shall
    offer the health benefit option described in subsection (a) to enrollees
    upon the later of the following:
                (1) The date on which health care services within the health
            care delivery system of the uniformed services are rendered
            through the TRICARE program in the region in which the
            designated provider operates.
                (2) October 1, 1997.

        (c) Adjustments.--The Secretary may establish a later date under
    subsection (b)(2) or prescribe reduced cost-sharing requirements for
    enrollees.

    [[Page 110 STAT. 2595]]

    SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

        (a) Fiscal Year 1997 Limitation.--(1) During fiscal year 1997, the
    number of covered beneficiaries who are enrolled in managed care plans
    offered by designated providers may not exceed the number of such
    enrollees as of October 1, 1995.
        (2) The Secretary may waive the limitation under paragraph (1) if
    the Secretary determines that additional enrollment authority for a
    designated provider is required to accommodate covered beneficiaries who
    are dependents of members of the uniformed services entitled to health
    care under section 1074(a) of title 10, United States Code.
        (b) Permanent Limitation.--For each fiscal year beginning after
    September 30, 1997, the number of enrollees in managed care plans
    offered by designated providers may not exceed 110 percent of the number
    of such enrollees as of the first day of the immediately preceding
    fiscal year. The Secretary may waive this limitation as provided in
    subsection (a)(2).
        (c) Retention of Current Enrollees.--An enrollee in the managed care
    plan of a designated provider as of September 30, 1997, or such earlier
    date as the designated provider and the Secretary may agree upon, shall
    continue receiving services from the designated provider pursuant to the
    agreement entered into under section 722 unless the enrollee disenrolls
    from the designated provider. Except as provided in subsection (e), the
    administering Secretaries may not disenroll such an enrollee unless the
    disenrollment is agreed to by the Secretary and the designated provider.
        (d) Additional Enrollment Authority.--Other covered beneficiaries
    may also receive health care services from a designated provider, except
    that the designated provider may market such services to, and enroll,
    only those covered beneficiaries who--
                (1) do not have other primary health insurance coverage
            (other than Medicare coverage) covering basic primary care and
            inpatient and outpatient services; or
                (2) are enrolled in the direct care system under the TRICARE
            program, regardless of whether the covered beneficiaries were
            users of the health care delivery system of the uniformed
            services in prior years.

        (e) Special Rule for Medicare-Eligible Beneficiaries.--If a covered
    beneficiary who desires to enroll in the managed care program of a
    designated provider is also entitled to hospital insurance benefits
    under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c
    et seq.), the covered beneficiary shall elect whether to receive health
    care services as an enrollee or under part A of title XVIII of the
    Social Security Act. The Secretary may disenroll an enrollee who
    subsequently violates the election made under this subsection and
    receives benefits under part A of title XVIII of the Social Security
    Act.
        (f) Information Regarding Eligible Covered Beneficiaries.--The
    Secretary shall provide, in a timely manner, a designated provider with
    an accurate list of covered beneficiaries within the marketing area of
    the designated provider to whom the designated provider may offer
    enrollment.

    SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

        (a) Application of Payment Rules.--Subject to subsection (b), the
    Secretary shall require a private facility or
    health care

    [[Page 110 STAT. 2596]]

    provider that is a health care provider under the Civilian Health and
    Medical Program of the Uniformed Services to apply the payment rules
    described in section 1074(c) of title 10, United States Code, in
    imposing charges for health care that the private facility or provider
    provides to enrollees of a designated provider.

        (b) Authorized Adjustments.--The payment rules imposed under
    subsection (a) shall be subject to such modifications as the Secretary
    considers appropriate. The Secretary may authorize a lower rate than the
    maximum rate that would otherwise apply under subsection (a) if the
    lower rate is agreed to by the designated provider and the private
    facility or health care provider.
        (c) Regulations.--The Secretary shall prescribe regulations to
    implement this section after consultation with the other administering
    Secretaries.
        (d) Conforming Amendment.--Section 1074 of title 10, United States
    Code, is amended by striking out subsection (d).

    SEC. 726. PAYMENTS FOR SERVICES.

        (a) Form of Payment.--Unless otherwise agreed to by the Secretary
    and a designated provider, the form of payment for health care services
    provided by a designated provider shall be on a full risk capitation
    payment basis. The capitation payments shall be negotiated and agreed
    upon by the Secretary and the designated provider. In addition to such
    other factors as the parties may agree to apply, the capitation payments
    shall be based on the utilization experience of enrollees and
    competitive market rates for equivalent health care services for a
    comparable population to such enrollees in the area in which the
    designated provider is located.
        (b) Limitation on Total Payments.--Total capitation payments for
    health care services to a designated provider shall not exceed an amount
    equal to the cost that would have been incurred by the Government if the
    enrollees had received such health care services through a military
    treatment facility, the TRICARE program, or the Medicare program, as the
    case may be.
        (c) Establishment of Payment Rates on Annual Basis.--The Secretary
    and a designated provider shall establish capitation payments on an
    annual basis, subject to periodic review for actuarial soundness and to
    adjustment for any adverse or favorable selection reasonably anticipated
    to result from the design of the program under this subtitle.
        (d) Alternative Basis for Calculating Payments.--After September 30,
    1999, the Secretary and a designated provider may mutually agree upon a
    new basis for calculating capitation payments.

    SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

        (a) Repeals.--The following provisions of law are repealed:
                (1) Section 911 of the Military Construction Authorization
            Act, 1982 (42 U.S.C. 248c).
                (2) Section 1252 of the Department of Defense Authorization
            Act, 1984 (42 U.S.C. 248d).
                (3) Section 718(c) of the National Defense Authorization Act
            for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c note).
                (4) Section 726 of the National Defense Authorization Act
            for Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c note).

    [[Page 110 STAT. 2597]]

        (b) Effective Date.--The amendments made by paragraphs (1), (2), and
    (3) of subsection (a) shall take effect on October 1, 1997.

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

    SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING
                            NONMEDICALLY NECESSARY TREATMENT IN
                            CONNECTION WITH CERTAIN CLINICAL TRIALS.

        (a) Waiver Authority.--Paragraph (13) of section 1079(a) of title
    10, United States Code, is amended--
                (1) by striking out ``any service'' and inserting in lieu
            thereof ``Any service'';
                (2) by striking out the semicolon at the end and inserting
            in lieu thereof a period; and
                (3) by adding at the end the following: ``Pursuant to an
            agreement with the Secretary of Health and Human Services and
            under such regulations as the Secretary of Defense may
            prescribe, the Secretary of Defense may waive the operation of
            this paragraph in connection with clinical trials sponsored or
            approved by the National Institutes of Health if the Secretary
            of Defense determines that such a waiver will promote access by
            covered beneficiaries to promising new treatments and contribute
            to the development of such treatments.''.

        (b) Clerical Amendments.--Such section is further amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``except that--'' and inserting in lieu thereof ``except as
            follows:'';
                (2) by capitalizing the first letter of the first word of
            each of paragraphs (1) through (17);
                (3) by striking out the semicolon at the end of each of
            paragraphs (1) through (12) and paragraphs (14) and (15) and
            inserting in lieu thereof a period; and
                (4) in paragraph (16), by striking out ``; and'' and
            inserting in lieu thereof a period.
    SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL
                            HEALTH-CARE PROVIDERS UNDER CHAMPUS.

        Section 1079(h) of title 10, United States Code, is amended--
                (1) by redesignating paragraph (5) as paragraph (6); and
                (2) by inserting after paragraph (4) the following new
            paragraph:

        ``(5) In addition to the authority provided under paragraph (4), the
    Secretary may authorize the commander of a facility of the uniformed
    services, the lead agent (if other than the commander), and the health
    care contractor to modify the payment limitations under paragraph (1)
    for certain health care providers when necessary to ensure both the
    availability of certain services for covered beneficiaries and lower
    costs than would otherwise be incurred to provide the services.''.
    SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS
                            REFUNDS TO CURRENT YEAR APPROPRIATION.

        (a) Credits to CHAMPUS Accounts.--(1) Chapter 55 of title 10, United
    States Code, is amended by inserting after section 1079 the following
    new section:

    [[Page 110 STAT. 2598]]

    ``Sec. 1079a. CHAMPUS: treatment of refunds and other amounts
                          collected

        ``All refunds and other amounts collected in the administration of
    the Civilian Health and Medical Program of the Uniformed Services shall
    be credited to the appropriation available for that program for the
    fiscal year in which the refund or amount is collected.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1079 the
    following new item:

    ``1079a. CHAMPUS: treatment of refunds and other amounts collected.''.

        (b) Conforming Repeal.--Section 8094 of the Department of Defense
    Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 671), is
    repealed.
    SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING
                            NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

        (a) Reference to Inpatient Medical Care.--(1) Section 1080(a) of
    title 10, United States Code, is amended by inserting ``inpatient''
    before ``medical care'' in the first sentence.
        (2) Section 1086(e) of such title is amended in the first sentence
    by striking out ``benefits'' and inserting in lieu thereof ``inpatient
    medical care''.
        (b) Waivers and Exceptions to Requirements.--(1) Section 1080 of
    such title is amended by adding at the end the following new subsection:
        ``(c) Waivers and Exceptions to Requirements.--(1) A covered
    beneficiary enrolled in a managed care plan offered pursuant to any
    contract or agreement under this chapter for the provision of health
    care services shall not be required to obtain a nonavailability-of-
    health-care statement as a condition for the receipt of health care.
        ``(2) The Secretary of Defense may waive the requirement to obtain
    nonavailability-of-health-care statements following an evaluation of the
    effectiveness of such statements in optimizing the use of facilities of
    the uniformed services.''.
        (2) Section 1086(e) of such title is amended in the last sentence by
    striking out ``section 1080(b)'' and inserting in lieu thereof
    ``subsections (b) and (c) of section 1080''.
        (c) Conforming Amendments.--Section 1080(b) of such title is
    amended--
                (1) by striking out ``Nonavailability of Health Care
            Statements'' and inserting in lieu thereof ``Nonavailability-of-
            Health-Care Statements''; and
                (2) by striking out ``nonavailability of health care
            statement'' and inserting in lieu thereof ``nonavailability-of-
            health-care statement''.
    SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND SECONDARY
                            PAYER AUTHORITIES UNDER CHAMPUS.

        (a) Retention and Use by Treatment Facilities of Amounts
    Collected.--Subsection (g)(1) of section 1095 of title 10, United States
    Code, is amended by inserting ``or through'' after ``provided at''.
        (b) Expansion of Definition of Third-Party Payer.--Subsection (h) of
    such section is amended--

    [[Page 110 STAT. 2599]]

                (1) in the first sentence of paragraph (1), by inserting
            ``and a workers' compensation program or plan'' before the
            period; and
                (2) in paragraph (2)--
                        (A) by striking out ``organization and'' and
                    inserting in lieu thereof a ``organization,''; and
                        (B) by inserting before the period at the end the
                    following: ``, and a personal injury protection plan or
                    medical payments benefit plan for personal injuries
                    resulting from the operation of a motor vehicle''.

        (c) Applicability of Secondary Payer Requirement.--Section
    1079(j)(1) of such title is amended by inserting after ``or health
    plan'' the following: ``, including any plan offered by a third-party
    payer (as defined in section 1095(h)(1) of this title),''.

                            Subtitle E--Other Matters

    SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION UNDER
                            ARMED FORCES HEALTH PROFESSIONS
                            SCHOLARSHIP AND FINANCIAL ASSISTANCE
                            PROGRAM AND
                            UNIFORMED SERVICES UNIVERSITY OF THE
                            HEALTH SCIENCES.

        (a) Armed Forces Health Professions Scholarship and Financial
    Assistance Program.--Subsection (e) of section 2123 of title 10, United
    States Code, is amended to read as follows:
        ``(e)(1) A member of the program who is relieved of the member's
    active duty obligation under this subchapter before the completion of
    that active duty obligation may be given, with or without the consent of
    the member, any of the following alternative obligations, as determined
    by the Secretary of the military department concerned:
                ``(A) A service obligation in another armed force for a
            period of time not less than the member's remaining active duty
            service obligation.
                ``(B) A service obligation in a component of the Selected
            Reserve for a period not less than twice as long as the member's
            remaining active duty service obligation.
                ``(C) Repayment to the Secretary of Defense of a percentage
            of the total cost incurred by the Secretary under this
            subchapter on behalf of the member equal to the percentage of
            the member's total active duty service obligation being
            relieved, plus interest.

        ``(2) In addition to the alternative obligations specified in
    paragraph (1), if the member is relieved of an active duty obligation by
    reason of the separation of the member because of a physical disability,
    the Secretary of the military department concerned may give the member a
    service obligation as a civilian employee employed as a health care
    professional in a facility of the uniformed services for a period of
    time equal to the member's remaining active duty service obligation.
        ``(3) <<NOTE: Regulations.>> The Secretary of Defense shall
    prescribe regulations describing the manner in which an alternative
    obligation may be given under this subsection.''.

        (b) Uniformed Services University of the Health Sciences.--Section
    2114 of title 10, United States Code is amended by adding at the end the
    following new subsection:

    [[Page 110 STAT. 2600]]

        ``(h) A graduate of the University who is relieved of the graduate's
    active-duty service obligation under subsection (b) before the
    completion of that active-duty service obligation may be given, with or
    without the consent of the graduate, an alternative obligation in the
    same manner as provided in subparagraphs (A) and (B) of paragraph (1) of
    section 2123(e)(1) of this title or paragraph (2) of such section for
    members of the Armed Forces Health Professions Scholarship and Financial
    Assistance program.''.
        (c) Application <<NOTE: 10 USC 2114 note.>> of Amendments.--The
    amendments made by this section shall apply with respect to individuals
    who first become members of the Armed Forces Health Professions
    Scholarship and Financial Assistance program or students of the
    Uniformed Services University of the Health Sciences on or after October
    1, 1996.

        (d) Transition <<NOTE: 10 USC 2123 note.>> Provision.--(1) In the
    case of any member of the Armed Forces Health Professions Scholarship
    and Financial Assistance program who, as of October 1, 1996, is serving
    an active duty obligation under the program or is incurring an active
    duty obligation as a participant in the program, and who is subsequently
    relieved of the active duty obligation before the completion of the
    obligation, the alternative obligations authorized by the amendment made
    by subsection (a) may be used by the Secretary of the military
    department concerned with the agreement of the member.

        (2) <<NOTE: 10 USC 2114 note.>> In the case of any person who, as of
    October 1, 1996, is serving an active-duty service obligation as a
    graduate of the Uniformed Services University of the Health Sciences or
    is incurring an active-duty service obligation as a student of the
    University, and who is subsequently relieved of the active-duty service
    obligation before the completion of the obligation, the alternative
    obligations authorized by the amendment made by subsection (b) may be
    implemented by the Secretary of Defense with the agreement of the
    person.

        (e) Report on Utilization of Graduates of University.--Not later
    than 120 days after the date of the enactment of this Act, the Secretary
    of Defense shall submit to Congress a report on the utilization by the
    Department of Defense of graduates of the Uniformed Services University
    of the Health Sciences. The report shall include a discussion of means
    of ensuring that graduates of the University have received training in
    medical specialties for which the Department has particular need.
    SEC. 742. EXTERNAL <<NOTE: 10 USC 1071 note.>> PEER REVIEW FOR
                            DEFENSE HEALTH PROGRAM EXTRAMURAL MEDICAL
                            RESEARCH INVOLVING HUMAN SUBJECTS.

        (a) Establishment of External Peer Review Process.--The Secretary of
    Defense shall establish a peer review process that will use persons who
    are not officers or employees of the Government to review the research
    protocols of medical research projects.
        (b) Peer Review Requirements.--Funds of the Department of Defense
    may not be obligated or expended for any medical research project unless
    the research protocol for the project has been approved by the external
    peer review process established under subsection (a).
        (c) Medical Research Project Defined.--For purposes of this section,
    the term ``medical research project'' means a research project that--
                (1) involves the participation of human subjects;

    [[Page 110 STAT. 2601]]

                (2) is conducted solely by a non-Federal entity; and
                (3) is funded through the Defense Health Program account.

        (d) Effective <<NOTE: Applicability.>> Date.--The peer review
    requirements of subsection (b) shall take effect on October 1, 1996,
    and, except as provided in subsection (e), shall apply to all medical
    research projects proposed funded on or after that date, including
    medical research projects funded pursuant to any requirement of law
    enacted before, on, or after that date.

        (e) Exceptions.--Only the following medical research projects shall
    be exempt from the peer review requirements of sub-
    section (b):
                (1) A medical research project that the Secretary determines
            has been substantially completed by October 1, 1996.
                (2) A medical research project funded pursuant to any
            provision of law enacted on or after that date if the provision
            of law specifically refers to this section and specifically
            states that the peer review requirements do not apply.
    SEC. 743. INDEPENDENT <<NOTE: 10 USC 1074 note.>> RESEARCH
                            REGARDING GULF WAR
                            SYNDROME.

        (a) Definitions.--For purposes of this section:
                (1) The term ``Gulf War service'' means service on active
            duty as a member of the Armed Forces in the Southwest Asia
            theater of operations during the Persian Gulf War.
                (2) The term ``Gulf War syndrome'' means the complex of
            illnesses and symptoms commonly known as Gulf War syndrome.
                (3) The term ``Persian Gulf War'' has the meaning given that
            term in section 101(33) of title 38, United States Code.

        (b) Research.--The Secretary of Defense shall provide, by contract,
    grant, or other transaction, for scientific research to be carried out
    by entities independent of the Federal Government on possible causal
    relationships between Gulf War syndrome and--
                (1) the possible exposures of members of the Armed Forces to
            chemical warfare agents or other hazardous materials during Gulf
            War service; and
                (2) the use by the Department of Defense during the Persian
            Gulf War of combinations of various inoculations and
            investigational new drugs.

        (c) Procedures for Awarding Grants.--The Secretary shall prescribe
    the procedures to be used to make research awards under subsection (b).
    The procedures shall--
                (1) include a comprehensive, independent peer-review process
            for the evaluation of proposals for scientific research that are
            submitted to the Department of Defense; and
                (2) provide for the final selection of proposals for award
            to be based on the scientific merit and program relevance of the
            proposed research.

        (d) Availability of Funds.--Of the amount authorized to be
    appropriated under section 301(21) for defense medical programs,
    $10,000,000 is available for research under subsection (b).
    SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF
                            DEPARTMENT OF DEFENSE RELATING TO GULF WAR
                            ILLNESSES.

        (a) Medical Research and Clinical Care Programs.--The Comptroller
    General shall analyze the effectiveness of the medical research programs
    and clinical care programs of the Department

    [[Page 110 STAT. 2602]]

    of Defense that relate to illnesses that might have been contracted by
    members of the Armed Forces as a result of service in the Southwest Asia
    theater of operations during the Persian Gulf War.
        (b) Policies Regarding Investigational New Drugs.--The Comptroller
    General shall analyze the scope and effectiveness of the policies of the
    Department of Defense with respect to--
                (1) the use of investigational new drugs during the Persian
            Gulf War to treat members of the Armed Forces who served in the
            Southwest Asia theater of operations; and
                (2) the current use of investigational new drugs to treat
            illnesses referred to in subsection (a).

        (c) Administration of Medical Records.--The Comptroller General
    shall analyze the administration of medical records by the military
    departments in order to assess the extent to which such records
    accurately reflect the pre-deployment medical assessments, immunization
    records, informed consent releases, complaints during routine sick call,
    emergency room visits, visits with unit medics during deployment, and
    other relevant medical information relating to the members and former
    members referred to in
    subsection (a) with respect to the illnesses referred to in that
    subsection.
        (d) Reports.--Not later than March 1, 1997, the Comptroller General
    shall submit to Congress a separate report on each of the analyses
    required under subsections (a), (b), and (c).
    SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY PROGRAM.

        Not later than April 1, 1997, the Secretary of Defense shall submit
    to Congress a report evaluating the impact on the military health care
    system of limiting the service area of a facility designated as part of
    the specialized treatment facility program under section 1105 of title
    10, United States Code, to not more than 100 miles from the facility.
    SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION OF
                            MEDICAL AND DENTAL CARE FOR MEMBERS OF
                            RESERVE COMPONENTS.

        (a) Study.--(1) In consultation with the Secretary of
    Transportation, the Secretary of Defense shall conduct a study of means
    of improving the provision of medical and dental care to members of the
    reserve components referred to in paragraph (2) in order to ensure
    uniformity and consistency in the provision of such care to such
    members.
        (2) The members of the reserve components referred to in paragraph
    (1) are the following:
                (A) Members on active duty, including active duty for
            training and annual training duty.
                (B) Members on full-time National Guard duty.
                (C) Members on inactive-duty training, regardless of whether
            such members are in a pay or nonpay status.

        (b) Report.--Not later than 180 days after the date of the enactment
    of this Act, the Secretary of Defense shall submit to Congress a report
    on the study conducted under subsection (a). The report shall include
    such recommendations (including recommendations for legislation) as the
    Secretary considers appropriate.

    [[Page 110 STAT. 2603]]

    SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF ARMED
                            FORCES HEALTH PROFESSIONS SCHOLARSHIP AND
                            FINANCIAL ASSISTANCE PROGRAM.

        It is the sense of Congress that the Secretary of Defense should
    work with the Secretary of the Treasury to interpret section 117 of the
    Internal Revenue Code of 1986 so that the limitation on the amount of a
    qualified scholarship or qualified tuition reduction excluded from gross
    income does not apply to any portion of a scholarship or financial
    assistance provided by the Secretary of Defense to a person enrolled in
    the Armed Forces Health Professions Scholarship and Financial Assistance
    program under subchapter I of chapter 105 of title 10, United States
    Code.

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

                       Subtitle A--Acquisition Management

    Sec. 801. Procurement technical assistance programs.
    Sec. 802. Extension of pilot mentor-protege program.
    Sec. 803. Authority to waive certain requirements for defense
               acquisition pilot programs.
    Sec. 804. Modification of authority to carry out certain prototype
               projects.
    Sec. 805. Increase in threshold amounts for major systems.
    Sec. 806. Revisions in information required to be included in selected
               acquisition reports.
    Sec. 807. Increase in simplified acquisition threshold for humanitarian
               or peacekeeping operations.
    Sec. 808. Expansion of audit reciprocity among Federal agencies to
               include post-award audits.
    Sec. 809. Excessive compensation of certain contractor personnel.
    Sec. 810. Exception to prohibition on procurement of foreign goods.

                            Subtitle B--Other Matters

    Sec. 821. Prohibition on release of contractor proposals under Freedom
               of Information Act.
    Sec. 822. Amendments relating to reports on procurement regulatory
               activity.
    Sec. 823. Amendment of multiyear limitation on contracts for inspection,
               maintenance, and repair.
    Sec. 824. Streamlined notice requirements to contractors and employees
               regarding termination or substantial reduction in contracts
               under major defense programs.
    Sec. 825. Repeal of notice requirements for substantially or seriously
               affected parties in downsizing efforts.
    Sec. 826. Study of effectiveness of defense mergers.
    Sec. 827. Annual report relating to Buy American Act.
    Sec. 828. Foreign environmental technology.
    Sec. 829. Assessment of national defense technology and industrial base
               and
               dependency of base on supplies available only from foreign
               countries.
    Sec. 830. Expansion of report on implementation of automated information
               systems to include additional matters regarding information
               resources management.
    Sec. 831. Year 2000 software conversion.
    Sec. 832. Procurement from firms in industrial base for production of
               small arms.
    Sec. 833. Cable television franchise agreements.

                       Subtitle A--Acquisition Management

    SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

        (a) Funding.--Of the amount authorized to be appropriated under
    section 301(5), $12,000,000 shall be available for carrying out the
    provisions of chapter 142 of title 10, United States Code.

    [[Page 110 STAT. 2604]]

        (b) Specific Programs.--Of the amounts made available pursuant to
    subsection (a), $600,000 shall be available for fiscal year 1997 for the
    purpose of carrying out programs sponsored by eligible entities referred
    to in subparagraph (D) of section 2411(1) of title 10, United States
    Code, that provide procurement technical assistance in distressed areas
    referred to in subparagraph (B) of section 2411(2) of such title. If
    there is an insufficient number of satisfactory proposals for
    cooperative agreements in such distressed areas to allow effective use
    of the funds made available in accordance with this subsection in such
    areas, the funds shall be allocated among the Defense Contract
    Administration Services regions in accordance with section 2415 of such
    title.

    SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

        Section 831(j) of the National Defense Authorization Act for Fiscal
    Year 1991 (10 U.S.C. 2302 note) is amended--
                (1) in paragraph (1), by striking out ``1995'' and inserting
            in lieu thereof ``1998''; and
                (2) in paragraph (2), by striking out ``1996'' and inserting
            in lieu thereof ``1999''.
    SEC. 803. AUTHORITY <<NOTE: 10 USC 2430 note.>> TO WAIVE CERTAIN
                            REQUIREMENTS FOR DEFENSE ACQUISITION PILOT
                            PROGRAMS.

        (a) Authority.--The Secretary of Defense may waive sections 2399,
    2403, 2432, and 2433 of title 10, United States Code, in accordance with
    this section for any defense acquisition program designated by the
    Secretary of Defense for participation in the defense acquisition pilot
    program authorized by section 809 of the National Defense Authorization
    Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note).
        (b) Operational Test and Evaluation.--The Secretary of Defense may
    waive the requirements for operational test and evaluation for such a
    defense acquisition program as set forth in section 2399 of title 10,
    United States Code, if the Secretary--
                (1) determines (without delegation) that such test would be
            unreasonably expensive or impractical;
                (2) develops a suitable alternate operational test program
            for the system concerned;
                (3) describes in the test and evaluation master plan, as
            approved by the Director of Operational Test and Evaluation, the
            method of evaluation that will be used to evaluate whether the
            system will be effective and suitable for combat; and
                (4) <<NOTE: Reports.>> submits to the congressional defense
            committees a report containing the determination that was made
            under paragraph (1), a justification for that determination, and
            a copy of the plan required by paragraph (3).

        (c) Contractor Guarantees for Major Weapons Systems.--The Secretary
    of Defense may waive the requirements of section 2403 of title 10,
    United States Code, for such a defense acquisition program if an
    alternative guarantee is used that ensures high quality weapons systems.
        (d) Selected Acquisition Reports.--The Secretary of Defense may
    waive the requirements of sections 2432 and 2433 of title 10, United
    States Code, for such a defense acquisition program if the Secretary
    provides a single annual report to Congress at the end of each fiscal
    year that describes the status of the program in relation to the
    baseline description for the program established under section 2435 of
    such title.

    [[Page 110 STAT. 2605]]

    SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE
                            PROJECTS.

        (a) Authorized Officials.--(1) Subsection (a) of section 845 of the
    National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
    160; 107 Stat. 1721; 10 U.S.C. 2371 note) is amended by inserting ``,
    the Secretary of a military department, or any other official designated
    by the Secretary of Defense'' after ``Agency''.
        (2) Subsection (b)(2) of such section is amended to read as follows:

        ``(2) To the maximum extent practicable, competitive procedures
    shall be used when entering into agreements to carry out projects under
    subsection (a).''.
        (b) Extension of Authority.--Subsection (c) of such section is
    amended by striking out ``terminate'' and all that follows and inserting
    in lieu thereof ``terminate at the end of September 30, 1999.''.
        (c) Conforming and Technical Amendments.--Section 845 of such Act is
    further amended--
                (1) in subsection (b)--
                        (A) in paragraph (1), by striking out ``(c)(2) and
                    (c)(3) of such section 2371, as redesignated by section
                    827(b)(1)(B),'' and inserting in lieu thereof ``(e)(2)
                    and (e)(3) of such section 2371''; and
                        (B) in paragraph (2), by inserting after
                    ``Director'' the following: ``, Secretary, or other
                    official''; and
                (2) in subsection (c), by striking out ``of the Director''.

    SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

        (a) Increase and Adjustment.--Chapter 137 of title 10, United States
    Code, is amended--
                (1) in section 2302(5), by striking out the third sentence
            and inserting in lieu thereof the following: ``A system shall be
            considered a major system if (A) the conditions of section 2302d
            of this title are satisfied, or (B) the system is designated a
            `major system' by the head of the agency responsible for the
            system.''; and
                (2) by inserting after section 2302c the following:
    ``Sec. 2302d. Major system: definitional threshold amounts

        ``(a) Department of Defense Systems.--For purposes of section
    2302(5) of this title, a system for which the Department of Defense is
    responsible shall be considered a major system if--
                ``(1) the total expenditures for research, development,
            test, and evaluation for the system are estimated to be more
            than $115,000,000 (based on fiscal year 1990 constant dollars);
            or
                ``(2) the eventual total expenditure for procurement of more
            than $540,000,000 (based on fiscal year 1990 constant dollars).

        ``(b) Civilian Agency Systems.--For purposes of section 2302(5) of
    this title, a system for which a civilian agency is responsible shall be
    considered a major system if total expenditures for the system are
    estimated to exceed the greater of--
                ``(1) $750,000 (based on fiscal year 1980 constant
            dollars); or
                ``(2) the dollar threshold for a `major system' established
            by the agency pursuant to Office of Management and Budget (OMB)
            Circular A-109, entitled `Major Systems Acquisitions'.

    [[Page 110 STAT. 2606]]

        ``(c) Adjustment Authority.--(1) The Secretary of Defense may adjust
    the amounts and the base fiscal year provided in subsection (a) on the
    basis of Department of Defense escalation rates.
        ``(2) An amount, as adjusted under paragraph (1), that is not evenly
    divisible by $5,000,000 shall be rounded to the nearest multiple of
    $5,000,000. In the case of an amount that is evenly divisible by
    $2,500,000 but not evenly divisible by $5,000,000, the amount shall be
    rounded to the next higher multiple of $5,000,000.
        ``(3) <<NOTE: Effective date.>> An adjustment under this subsection
    shall be effective after the Secretary transmits to the Committee
    on <<NOTE: Notification.>> Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a written
    notification of the adjustment.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2302c the following:

    ``2302d. Major system: definitional threshold amounts.''.

    SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED IN SELECTED
                ACQUISITION REPORTS.

        Section 2432 of title 10, United States Code, is amended--
                (1) in subsection (c)(1)--
                        (A) by striking out ``and'' at the end of subpara-
                    graph (B);
                        (B) by redesignating subparagraph (C) as
                    subparagraph (D); and
                        (C) by inserting after subparagraph (B) the
                    following new subparagraph (C):
                ``(C) the current procurement unit cost for each major
            defense acquisition program included in the report and the
            history of that cost from the date the program was first
            included in a Selected Acquisition Report to the end of the
            quarter for which the current report is submitted; and''; and
                (2) in subsection (e), by striking out paragraph (8) and
            redesignating paragraph (9) as paragraph (8).
    SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR
                            HUMANITARIAN OR PEACEKEEPING OPERATIONS.

        (a) Armed Services Acquisitions.--Section 2302(7) of title 10,
    United States Code, is amended--
                (1) by inserting ``(A)'' after ``(7)'';
                (2) by inserting after ``contingency operation'' the
            following: ``or a humanitarian or peacekeeping operation''; and
                (3) by adding at the end the following:
                ``(B) In subparagraph (A), the term `humanitarian or
            peacekeeping operation' means a military operation in support of
            the provision of humanitarian or foreign disaster assistance or
            in support of a peacekeeping operation under chapter VI or VII
            of the Charter of the United Nations. The term does not include
            routine training, force rotation, or stationing.''.

        (b) Civilian Agency Acquisitions.--Section 309(d) of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    259(d)) is amended--
                (1) by inserting ``(1)'' after ``(d)'';
                (2) by inserting after ``contingency operation'' the
            following: ``or a humanitarian or peacekeeping operation''; and
                (3) by adding at the end the following:

        ``(2) In paragraph (1):

    [[Page 110 STAT. 2607]]

                ``(A) The term `contingency operation' has the meaning given
            such term in section 101(a) of title 10, United States Code.
                ``(B) The term `humanitarian or peacekeeping operation'
            means a military operation in support of the provision of
            humanitarian or foreign disaster assistance or in support of a
            peacekeeping operation under chapter VI or VII of the Charter of
            the United Nations. The term does not include routine training,
            force rotation, or stationing.''.
    SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL AGENCIES TO
                            INCLUDE POST-AWARD AUDITS.

        (a) Armed Services Acquisitions.--Subsection (d) of section 2313 of
    title 10, United States Code, is amended to read as follows:
        ``(d) Limitation on Audits Relating to Indirect Costs.--The head of
    an agency may not perform an audit of indirect costs under a contract,
    subcontract, or modification before or after entering into the contract,
    subcontract, or modification in any case in which the contracting
    officer determines that the objectives of the audit can reasonably be
    met by accepting the results of an audit that was conducted by any other
    department or agency of the Federal Government within one year preceding
    the date of the contracting officer's determination.''.
        (b) Civilian Agency Acquisitions.--Subsection (d) of section 304C of
    the Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    254d) is amended to read as follows:
        ``(d) Limitation on Audits Relating to Indirect Costs.--An executive
    agency may not perform an audit of indirect costs under a contract,
    subcontract, or modification before or after entering into the contract,
    subcontract, or modification in any case in which the contracting
    officer determines that the objectives of the audit can reasonably be
    met by accepting the results of an audit that was conducted by any other
    department or agency of the Federal Government within one year preceding
    the date of the contracting officer's determination.''.
        (c) Guidelines <<NOTE: 31 USC 7505 note.>> for Acceptance of Audits
    by State and Local Governments Receiving Federal Assistance.--The
    Director of the Office of Management and Budget shall issue guidelines
    to ensure that an audit of indirect costs performed by the Federal
    Government is accepted by State and local governments that receive
    Federal funds under contracts, grants, or other Federal assistance
    programs.

    SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

        (a) Armed Services Procurements.--(1) During fiscal year 1997, the
    head of an agency shall treat the costs described in paragraph (2) as
    not allowable under a covered contract, in the same manner as costs
    listed in section 2324(e)(1) of title 10, United States Code.
        (2) The costs covered by paragraph (1) are costs of compensation
    paid with respect to services of any one officer to the extent that the
    total amount of the compensation paid in a fiscal year exceeds $250,000.
        (b) Civilian Agency Procurements.--(1) During fiscal year 1997, an
    executive agency shall treat the costs described in paragraph (2) as not
    allowable under a covered contract, in the same manner as costs listed
    in section 306(e)(1) of the Federal Property and Administrative Services
    Act of 1949 (41 U.S.C. 256(e)(1)).

    [[Page 110 STAT. 2608]]

        (2) The costs covered by paragraph (1) are costs of compensation
    paid with respect to services of any one officer to the extent that the
    total amount of the compensation paid in a fiscal year exceeds $250,000.
        (c) Definitions.--In this section:
                (1) The term ``head of an agency'' has the meaning provided
            in section 2302 of title 10, United States Code.
                (2) The term ``executive agency'' has the meaning provided
            in section 3 of the Federal Property and Administrative Services
            Act of 1949 (40 U.S.C. 472).
                (3) The term ``covered contract''--
                        (A) with respect to procurements subject to chapter
                    137 of title 10, United States Code, has the meaning
                    provided by section 2324(l) of such title; and
                        (B) with respect to procurements subject to title
                    III of the Federal Property and Administrative Services
                    Act of 1949 (41 U.S.C. 251 et seq.), has the meaning
                    provided by section 306(l) of such Act (41 U.S.C.
                    256(l)).
                (4) The term ``compensation'' means--
                        (A) the total amount of wages as defined in section
                    3401(a) of the Internal Revenue Code of 1986 for the
                    year concerned; and
                        (B) the total amount of elective deferrals (within
                    the meaning of section 402(g)(3) of such Code) for the
                    year concerned.
                (5) The term ``officer'' means a person who is determined to
            be in a senior management position as established by regulation.

        (d) Review.--The Administrator for Federal Procurement Policy, in
    consultation with the Secretary of Defense, shall conduct a
    comprehensive review of the levels of compensation received by senior
    executives of corporations performing a significant amount of business
    with the Federal Government in order to determine the appropriate cost
    allowability policy in this area. Such a review should include the
    following:
                (1) In consultation with the Secretary of the Treasury, an
            examination of the appropriate definition and treatment of
            compensation, including deferred compensation.
                (2) An examination of the appropriate definition of senior
            executive positions and any other positions that should be
            covered under the cost allowability policy.
                (3) An examination of how to apply the cost allowability
            policy to individual contracts and aggregations of contracts
            within a corporation.
                (4) Any other matter related to the cost allowability of
            executive compensation that the Administrator considers
            appropriate.

        (e) Legislative <<NOTE: President.>> Proposal.--Not later than March
    1, 1997, the President shall submit to Congress a legislative proposal
    incorporating the conclusions reached by the review conducted under
    subsection (d) and establishing a statutory Government standard on the
    cost allowability of executive compensation.
    SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF
                            FOREIGN GOODS.

        Section 2534(d)(3) of title 10, United States Code, is amended by
    inserting ``or would impede the reciprocal procurement of defense

    [[Page 110 STAT. 2609]]

    items under a memorandum of understanding providing for reciprocal
    procurement of defense items that is entered into under section 2531 of
    this title,'' after ``a foreign country,''.

                            Subtitle B--Other Matters

    SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS UNDER
                            FREEDOM OF INFORMATION ACT.

        (a) Armed Services Acquisitions.--Section 2305 of title 10, United
    States Code, is amended by adding at the end the following new
    subsection:
        ``(g) Prohibition on Release of Contractor Proposals.--(1) Except as
    provided in paragraph (2), a proposal in the possession or control of
    the Department of Defense may not be made available to any person under
    section 552 of title 5.
        ``(2) Paragraph (1) does not apply to any proposal that is set forth
    or incorporated by reference in a contract entered into between the
    Department and the contractor that submitted the proposal.
        ``(3) In this subsection, the term `proposal' means any proposal,
    including a technical, management, or cost proposal, submitted by a
    contractor in response to the requirements of a solicitation for a
    competitive proposal.''.
        (b) Civilian Agency Acquisitions.--Section 303B of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    253b) is amended by adding at the end the following new subsection:
        ``(m) Prohibition on Release of Contractor Proposals.--(1) Except as
    provided in paragraph (2), a proposal in the possession or control of an
    executive agency may not be made available to any person under section
    552 of title 5, United States Code.
        ``(2) Paragraph (1) does not apply to any proposal that is set forth
    or incorporated by reference in a contract entered into between the
    agency and the contractor that submitted the proposal.
        ``(3) In this subsection, the term `proposal' means any proposal,
    including a technical, management, or cost proposal, submitted by a
    contractor in response to the requirements of a solicitation for a
    competitive proposal.''.
    SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT REGULATORY
                            ACTIVITY.

        Subsection (g) of section 25 of the Office of Federal Procurement
    Policy Act (41 U.S.C. 421) is amended--
                (1) in paragraph (1)--
                        (A) by striking out ``within 6 months after the date
                    of enactment of this section and every 6 months
                    thereafter'' and inserting in lieu thereof ``every 12
                    months''; and
                        (B) by inserting ``and'' after the semicolon at the
                    end;
                (2) in paragraph (2)(H), by striking out ``; and'' and
            inserting in lieu thereof a period; and
                (3) by striking out paragraph (3).
    SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS FOR
                            INSPECTION, MAINTENANCE, AND REPAIR.

        Paragraph (14) of section 210(a) of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended by
    striking out ``for periods not exceeding three years'' and inserting in
    lieu thereof ``for periods not exceeding five years''.

    [[Page 110 STAT. 2610]]

    SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS AND
                            EMPLOYEES REGARDING TERMINATION OR
                            SUBSTANTIAL REDUCTION IN CONTRACTS UNDER
                            MAJOR DEFENSE PROGRAMS.

        (a) Elimination of Unnecessary Requirements.--Section 4471 of the
    Defense Conversion, Reinvestment, and Transition Assistance Act of 1992
    (division D of Public Law 102-484; 10 U.S.C. 2501 note) is amended--
                (1) by striking out subsection (a);
                (2) by striking out subsection (f), except paragraph (4);
                (3) by redesignating subsections (b), (c), (d), (e), and (g)
            as subsections (a), (b), (c), (d), and (f), respectively; and
                (4) by redesignating such paragraph (4) as subsection (e).

        (b) Notice to Contractors.--Subsection (a) of such section, as
    redesignated by subsection (a)(3), is amended by striking out paragraphs
    (1) and (2) and inserting in lieu thereof the following:
                ``(1) shall identify each contract (if any) under major
            defense programs of the Department of Defense that will be
            terminated or substantially reduced as a result of the funding
            levels provided in that Act; and
                ``(2) shall ensure that notice of the termination of, or
            substantial reduction in, the funding of the contract is
            provided--
                        ``(A) directly to the prime contractor under the
                    con-
                    tract; and
                        ``(B) directly to the Secretary of Labor.''.

        (c) Notice to Subcontractors.--Subsection (b) of such section, as
    redesignated by subsection (a)(3), is amended--
                (1) by striking out ``As soon as'' and all that follows
            through ``prime contractor shall--'' in the matter preceding
            paragraph (1) and inserting in lieu thereof ``Not later than 60
            days after the date on which the prime contractor for a contract
            under a major defense program receives notice under subsection
            (a), the prime contractor shall--'';
                (2) in paragraph (1)--
                        (A) by striking out ``for that program under a
                    contract'' and inserting in lieu thereof ``under that
                    prime contract for subcontracts''; and
                        (B) by striking out ``for the program''; and
                (3) in paragraph (2)(A), by striking out ``for the program
            under a contract'' and inserting in lieu thereof ``for
            subcontracts''.

        (d) Notice to Employees and State Dislocated Worker Unit.--
    Subsection (c) of such section, as redesignated by subsection (a)(3), is
    amended by striking out ``under subsection (a)(1)'' and all that follows
    through ``a defense program,'' in the matter preceding paragraph (1) and
    inserting in lieu thereof ``under subsection (a),''.
        (e) Cross References and Conforming Amendments.--(1) Subsection (d)
    of such section, as redesignated by subsection (a)(3), is amended--
                (A) by striking out ``a major defense program provided under
            subsection (d)(1)'' and inserting in lieu thereof ``a defense
            contract provided under subsection (c)(1)''; and
                (B) by striking out ``the program'' and inserting in lieu
            thereof ``the contract''.

    [[Page 110 STAT. 2611]]

        (2) Subsection (e) of such section, as redesignated by subsection
    (a)(4), is amended--
                (A) by striking out ``eligibility'' and inserting in lieu
            thereof ``Eligibility''; and
                (B) by striking out ``under paragraph (3)'' and inserting in
            lieu thereof ``or cancellation of the termination of, or
            substantial reduction in, contract funding''.

        (3) Subsection (f) of such section, as redesignated by subsection
    (a)(3), is amended in paragraph (2)--
                (A) by inserting ``a defense contract under'' before ``a
            major defense program''; and
                (B) by striking out ``contracts under the program'' and
            inserting in lieu thereof ``the funds obligated by the
            contract''.
    SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY OR
                            SERIOUSLY AFFECTED PARTIES IN DOWNSIZING
                            EFFORTS.

        Sections 4101 and 4201 of the National Defense Authorization Act for
    Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1850, 1851; 10 U.S.C.
    2391 note) are repealed.

    SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

        (a) Study.--The Secretary of Defense shall conduct a study on
    mergers and acquisitions in the defense sector. The study shall address
    the following:
                (1) The effectiveness of defense mergers and acquisitions in
            eliminating excess capacity within the defense industry.
                (2) The degree of change in the dependence by defense
            contractors on defense-related Federal contracts within their
            overall business after mergers.
                (3) The effect on defense industry employment resulting from
            defense mergers and acquisitions occurring during the three
            years preceding the date of the enactment of this Act.
                (4) The effect on competition for defense contracts.

        (b) Report.--Not later than six months after the date of the
    enactment of this Act, the Secretary of Defense shall submit to Congress
    a report on the results of the study conducted under subsection (a).

    SEC. 827. <<NOTE: 41 USC 10b-3.>> ANNUAL REPORT RELATING TO BUY AMERICAN
                ACT.

        The Secretary of Defense shall submit to Congress, not later than
    120 days after the end of each fiscal year, a report on the amount of
    purchases by the Department of Defense from foreign entities in that
    fiscal year. Such report shall separately indicate the dollar value of
    items for which the Buy American Act (41 U.S.C. 10a et seq.) was waived
    pursuant to any of the following:
                (1) Any reciprocal defense procurement memorandum of
            understanding described in section 849(c)(2) of Public Law 103-
            160 (41 U.S.C. 10b-2 note).
                (2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et
            seq.)
                (3) Any international agreement to which the United States
            is a party.

    SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

        Subsection (b) of section 2536 of title 10, United States Code, is
    amended to read as follows:

    [[Page 110 STAT. 2612]]

        ``(b) Waiver Authority.--(1) The Secretary concerned may waive the
    application of subsection (a) to a contract award if--
                ``(A) the Secretary concerned determines that the waiver is
            essential to the national security interests of the United
            States; or
                ``(B) in the case of a contract awarded for environmental
            restoration, remediation, or waste management at a Department of
            Defense or Department of Energy facility--
                        ``(i) the Secretary concerned determines that the
                    waiver will advance the environmental restoration,
                    remediation, or waste management objectives of the
                    department concerned and will not harm the national
                    security interests of the United States; and
                        ``(ii) the entity to which the contract is awarded
                    is controlled by a foreign government with which the
                    Secretary concerned is authorized to exchange Restricted
                    Data under section 144 c. of the Atomic Energy Act of
                    1954 (42 U.S.C. 2164(c)).

        ``(2) <<NOTE: Notification.>> The Secretary concerned shall notify
    Congress of any decision to grant a waiver under paragraph (1)(B) with
    respect to a contract. The contract may be awarded only after the end of
    the 45-day period beginning on the date the notification is received by
    the committees.''.
    SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL
                            BASE AND DEPENDENCY OF BASE ON
                            SUPPLIES AVAILABLE ONLY FROM FOREIGN
                            COUNTRIES.

        (a) National Security Objectives for National Technology and
    Industrial Base.--Section 2501(a) of title 10, United States Code, is
    amended by adding at the end the following:
                ``(5) Providing for the development, manufacture, and supply
            of items and technologies critical to the production and
            sustainment of advanced military weapon systems within the
            national technology and industrial base.''.

        (b) National Defense Program for Analysis of the Technology and
    Industrial Base.--Section 2503 of title 10, United States Code, is
    amended--
                (1) in subsection (a)--
                        (A) by striking out ``(1) The Secretary of Defense,
                    in consultation with the National Defense Technology and
                    Industrial Base Council,'' in paragraph (1) and
                    inserting in lieu thereof ``The Secretary of Defense'';
                    and
                        (B) by striking out paragraphs (2), (3), and (4);
                    and
                (2) in subsection (c)(3)(A)--
                        (A) by striking out ``the National Defense
                    Technology and Industrial Base Council in'' and
                    inserting in lieu thereof ``the Secretary of Defense
                    for''; and
                        (B) by striking out ``and the periodic plans
                    required by section 2506 of this title''.

        (c) Periodic Defense Capability Assessments, Including Foreign
    Dependency.--(1) Section 2505 of title 10, United States Code, is
    amended to read as follows:
    ``Sec. 2505. National technology and industrial base: periodic
                        defense capability assessments

        ``(a) Periodic Assessment.--Each fiscal year, the Secretary of
    Defense shall prepare selected assessments of the capability

    [[Page 110 STAT. 2613]]

    of the national technology and industrial base to attain the national
    security objectives set forth in section 2501(a) of this title. The
    Secretary of Defense shall prepare such assessments in consultation with
    the Secretary of Commerce and the Secretary of Energy.
        ``(b) Assessment Process.--The Secretary of Defense shall ensure
    that technology and industrial capability assessments--
                ``(1) describe sectors or capabilities, their underlying
            infrastructure and processes;
                ``(2) analyze present and projected financial performance of
            industries supporting the sectors or capabilities in the
            assessment; and
                ``(3) identify technological and industrial capabilities and
            processes for which there is potential for the national
            industrial and technology base not to be able to support the
            achievement of national security objectives.

        ``(c) Assessment of Extent of Dependency on Foreign Source Items.--
    Each assessment under subsection (a) shall include a separate discussion
    and presentation regarding the extent to which the national technology
    and industrial base is dependent on items for which the source of
    supply, manufacture, or technology is outside of the United States and
    Canada and for which there is no immediately available source in the
    United States or Canada. The discussion and presentation regarding
    foreign dependency shall--
                ``(1) identify cases that pose an unacceptable risk of
            foreign dependency, as determined by the Secretary; and
                ``(2) present actions being taken or proposed to be taken to
            remedy the risk posed by the cases identified under paragraph
            (1), including efforts to develop a domestic source for the item
            in question.

        ``(d) Integrated Process.--The Secretary of Defense shall ensure
    that consideration of the technology and industrial base assessments is
    integrated into the overall budget, acquisition, and logistics support
    decision processes of the Department of Defense.''.
        (2) Section 2502(b) of title 10, United States Code, is amended--
                (A) by striking out ``the following responsibilities:'' and
            all that follows through ``effective cooperation'' and inserting
            in lieu thereof ``the responsibility to ensure effective
            cooperation''; and
                (B) by striking out paragraph (2); and

        (3) by redesignating subparagraphs (A), (B), and (C) as paragraphs
    (1), (2), and (3), respectively, and adjusting the margin of such
    paragraphs two ems to the left.
        (d) Repeal of Requirement for Periodic Defense Capability Plan;
    Development of Policy Guidance.--Section 2506 of title 10, United States
    Code, is amended to read as follows:
    ``Sec. 2506. Department of Defense technology and industrial base
                        policy guidance

        ``(a) Departmental Guidance.--The Secretary of Defense shall
    prescribe departmental guidance for the attainment of each of the
    national security objectives set forth in section 2501(a) of this title.
    Such guidance shall provide for technological and industrial capability
    considerations to be integrated into the budget allocation, weapons
    acquisition, and logistics support decision processes.
        ``(b) Report to Congress.--The Secretary of Defense shall report on
    the implementation of the departmental guidance in the

    [[Page 110 STAT. 2614]]

    annual report to Congress submitted pursuant to section 2504 of this
    title.''.

        (e) Annual Report to Congress.--Subchapter II of chapter 148 of
    title 10, United States Code, is amended by inserting after section 2503
    the following new section:

    ``Sec. 2504. Annual report to Congress

        ``The Secretary of Defense shall transmit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives by March 1 of each year a report which shall
    include the following information:
                ``(1) A description of the departmental guidance prepared
            pursuant to section 2506 of this title.
                ``(2) A description of the methods and analyses being
            undertaken by the Department of Defense alone or in cooperation
            with other Federal agencies, to identify and address concerns
            regarding technological and industrial capabilities of the
            national technology and industrial base.
                ``(3) A description of the assessments prepared pursuant to
            section 2505 of this title and other analyses used in developing
            the budget submission of the Department of Defense for the next
            fiscal year.
                ``(4) Identification of each program designed to sustain
            specific essential technological and industrial capabilities and
            processes of the national technology and industrial base.''.

        (f) Repeal of Requirement To Coordinate the Encouragement of
    Technology Transfer With the Council.--Subsection 2514(c) of title 10,
    United States Code, is amended by striking out paragraph (5).
        (g) Clerical Amendments.--(1) The table of sections at the beginning
    of subchapter II of chapter 148 of title 10, United States Code, is
    amended by inserting after the item relating to section 2503 the
    following new item:

    ``2504. Annual report to Congress.''.

        (2) Such table of sections is further amended by striking out the
    item relating to section 2506 and inserting in lieu thereof the
    following new item:

    ``2506. Department of Defense technology and industrial base policy
               guidance.''.

        (h) Repeal <<NOTE: 10 USC 2501 note.>> of Superseded and Executed
    Law.--Sections 4218, 4219, and 4220 of the National Defense
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C.
    2505 note and 2506 note) are repealed.
    SEC. 830. EXPANSION <<NOTE: 10 USC 113 note.>> OF REPORT ON
                            IMPLEMENTATION OF AUTOMATED INFORMATION
                            SYSTEMS TO INCLUDE ADDITIONAL MATTERS
                            REGARDING INFORMATION RESOURCES
                            MANAGEMENT.

        (a) Expanded Report.--The Secretary of Defense shall include in the
    report submitted in 1997 under section 381(f) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C.
    113 note) a discussion of the following matters relating to information
    resources management:
                (1) The progress made in implementing the Information
            Technology Management Reform Act of 1996 (division E of Public
            Law 104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the
            amendments made by that Act.

    [[Page 110 STAT. 2615]]

                (2) The progress made in implementing the strategy for the
            development or modernization of automated information systems
            for the Department of Defense, as required by section 366 of the
            National Defense Authorization Act for Fiscal Year 1996 (Public
            Law 104-106; 110 Stat. 275; 10 U.S.C. 113 note).
                (3) Plans of the Department of Defense for establishing an
            integrated framework for management of information resources
            within the department.

        (b) Specific Elements of Report.--The presentation of matters under
    subsection (a) shall specifically include a discussion of the following:
                (1) The status of the implementation of performance
            measures.
                (2) The specific actions being taken to link the proposed
            performance measures to the planning, programming, and budgeting
            system of the Department of Defense and to the life-cycle
            management processes of the department.
                (3) The results of pilot program testing of proposed
            performance measures.
                (4) The additional training necessary for the implementation
            of performance-based information management.
                (5) The department-wide actions that are necessary to
            comply with the requirements of the following provisions of law:
                        (A) The amendments made by the Government
                    Performance and Results Act of 1993 (Public Law 103-62;
                    107 Stat. 285).
                        (B) The Information Technology Management Reform Act
                    of 1996 (division E of Public Law 104-106; 110 Stat.
                    679; 40 U.S.C. 1401 et seq.) and the amendments made by
                    that Act.
                        (C) Title V of the Federal Acquisition Streamlining
                    Act of 1994 (Public Law 103-355; 108 Stat. 3349) and the
                    amendments made by that title.
                        (D) The Chief Financial Officers Act of 1990 (Public
                    Law 101-576; 104 Stat. 2838) and the amendments made by
                    that Act.

    SEC. 831. <<NOTE: 10 USC 2302 note.>> YEAR 2000 SOFTWARE CONVERSION.

        (a) Year 2000 Software Conversion.--The Secretary of Defense shall
    ensure that, as soon as practicable, all information technology acquired
    by the Department of Defense pursuant to contracts entered into after
    September 30, 1996, has the capabilities to process date and date-
    related data in 2000.
        (b) Assessment.--The Secretary, acting through the chief information
    officers within the department (as designated pursuant to section 3506
    of title 44, United States Code), shall assess all information
    technology within the Department of Defense to determine the extent to
    which such technology has the capabilities to operate effectively.
        (c) Plan.--Not later than January 1, 1997, the Secretary shall
    submit to Congress a detailed plan for eliminating any
    deficiencies identified pursuant to subsection (b). The plan shall
    include--
                (1) a list of affected major systems;
                (2) a description of how the deficiencies could affect the
            national security of the United States; and

    [[Page 110 STAT. 2616]]

                (3) an estimate and prioritization of the resources that are
            necessary to eliminate the deficiencies.
    SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR PRODUCTION
                            OF SMALL ARMS.

        (a) Requirement.--Chapter 146 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 2473. Procurements from the small arms production
                        industrial base

        ``(a) Authority To Limit Procurements To Certain Sources.--To the
    extent that the Secretary of Defense determines necessary to preserve
    the small arms production industrial base, the Secretary may require
    that any procurement of property or services described in subsection (b)
    for the Department of Defense be made only from a firm in the small arms
    production industrial base.
        ``(b) Covered Property and Services.--Subsection (a) applies to the
    following:
                ``(1) Repair parts for small arms.
                ``(2) Modifications of parts to improve small arms used by
            the armed forces.

        ``(c) Small Arms Production Industrial Base.--In this section, the
    term `small arms production industrial base' means the firms comprising
    the small arms production industrial base, as described in the plan
    entitled `Preservation of Critical Elements of the Small Arms Industrial
    Base', dated January 8, 1994, that was prepared by an independent
    assessment panel of the Army Science Board.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2473. Procurements from the small arms production industrial base.''.

    SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

        Based on the advisory opinion from the United States Court of
    Federal Claims, In the Matter of the Department of Defense Cable
    Television Franchise Agreements, National Defense Authorization Act for
    Fiscal Year 1996, Section 823, No. 96-133X (July 11, 1996)--
                (1) cable television franchise agreements for the
            construction, installation, or capital improvement of cable
            systems at military installations shall be considered contracts
            for purposes of the Federal Acquisition Regulation;
                (2) cable television operators are entitled to recovery of
            their investments at such installations to the extent authorized
            in part 49 of the Federal Acquisition Regulation; and
                (3) the appropriate official of the Department of Defense
            shall promptly issue a written notice of the termination for the
            convenience of the Government of the contracts described in such
            advisory opinion and commence settlement negotiations pursuant
            to the requirements of part 49 of the Federal Acquisition
            Regulation.

    [[Page 110 STAT. 2617]]

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                           Subtitle A--General Matters

    Sec. 901. Repeal of previously enacted reduction in number of statutory
               positions in Office of the Secretary of Defense.
    Sec. 902. Additional required reduction in defense acquisition
               workforce.
    Sec. 903. Reduction of personnel assigned to Office of the Secretary of
               Defense.
    Sec. 904. Report on military department headquarters staffs.
    Sec. 905. Matters to be considered in next assessment of current
               missions, responsibilities, and force structure of the
               unified combatant commands.
    Sec. 906. Transfer of authority to control transportation systems in
               time of war.
    Sec. 907. Codification of requirements relating to continued operation
               of the
               Uniformed Services University of the Health Sciences.
    Sec. 908. Joint Requirements Oversight Council.
    Sec. 909. Membership of the Ammunition Storage Board.
    Sec. 910. Removal of Secretary of the Army from membership on the
               Foreign Trade Zone Board.
    Sec. 911. Composition of aircraft accident investigation boards.
    Sec. 912. Mission of the White House Communications Agency.

                       Subtitle B--Force Structure Review

    Sec. 921. Short title.
    Sec. 922. Findings.
    Sec. 923. Quadrennial Defense Review.
    Sec. 924. National Defense Panel.
    Sec. 925. Postponement of deadlines.
    Sec. 926. Definitions.

                           Subtitle A--General Matters

    SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER OF
                            STATUTORY POSITIONS IN OFFICE OF THE
                            SECRETARY OF DEFENSE.

        Section 903 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 401) <<NOTE: 10 USC 131, 131
    note, 133a, 134a, 137, 138, 142, 167 note, 176, 1056, 1216, 1587,
    10201.>> is repealed.
    SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION
                            WORKFORCE.

        (a) Additional Reductions for Fiscal Year 1997.--Section 906(d) of
    the National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 405) is amended in paragraph (1) by striking out
    ``positions during fiscal year 1996'' and all that follows and inserting
    in lieu thereof ``so that--
                ``(A) the total number of defense acquisition personnel as
            of October 1, 1996, is less than the baseline number by at least
            15,000; and
                ``(B) the total number of defense acquisition personnel as
            of October 1, 1997, is less than the baseline number by at least
            30,000.''.

        (b) Baseline Number.--Such section is further amended by adding at
    the end the following new paragraph:
        ``(3) For purposes of this subsection, the term `baseline number'
    means the total number of defense acquisition personnel as of October 1,
    1995.''.
    SEC. 903. REDUCTION <<NOTE: 10 USC 131 note.>> OF PERSONNEL
                            ASSIGNED TO OFFICE OF THE SECRETARY OF
                            DEFENSE.

        (a) Permanent <<NOTE: Effective dates.>> Limitation on OSD
    Personnel.--Effective October 1, 1999, the number of OSD personnel may
    not exceed 75 percent of the baseline number.

    [[Page 110 STAT. 2618]]

        (b) Phased Reduction.--The number of OSD personnel--
                (1) as of October 1, 1997, may not exceed 85 percent of the
            baseline number; and
                (2) as of October 1, 1998, may not exceed 80 percent of the
            baseline number.

        (c) Baseline Number.--For purposes of this section, the term
    ``baseline number'' means the number of OSD personnel as of
    October 1, 1994.
        (d) OSD Personnel Defined.--For purposes of this section, the term
    ``OSD personnel'' means military and civilian personnel of the
    Department of Defense who are assigned to, or employed in, functions in
    the Office of the Secretary of Defense (including Direct Support
    Activities of that Office and the Washington Headquarters Services of
    the Department of Defense).
        (e) Limitation on Reassignment of Functions.--In carrying out
    reductions in the number of personnel assigned to, or employed in, the
    Office of the Secretary of Defense in order to comply with this section,
    the Secretary of Defense may not reassign functions solely in order to
    evade the requirements contained in this section.
        (f) Flexibility.--If the Secretary of Defense determines, and
    certifies to Congress, that the limitation in subsection (b) with
    respect to any fiscal year would adversely affect United States national
    security, the Secretary may waive the limitation under that subsection
    with respect to that fiscal year. If the Secretary of Defense
    determines, and certifies to Congress, that the limitation in subsection
    (a) during fiscal year 1999 would adversely affect United States
    national security, the Secretary may waive the limitation under that
    subsection with respect to that fiscal year. The authority under this
    subsection may be used only once, with respect to a single fiscal year.
        (g) Repeal of Prior Requirement.--Section 901(d) of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 401) is repealed.
    SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.

        (a) Review by Secretary of Defense.--The Secretary of Defense shall
    conduct a review of the size, mission, organization, and functions of
    the military department headquarters staffs. This review shall include
    the following:
                (1) An assessment on the adequacy of the present
            organization structure to efficiently and effectively support
            the mission of the military departments.
                (2) An assessment of options to reduce the number of
            personnel assigned to the military department headquarters
            staffs.
                (3) An assessment of the extent of unnecessary duplication
            of functions between the Office of the Secretary of Defense and
            the military department headquarters staffs.
                (4) An assessment of the possible benefits that could be
            derived from further functional consolidation between the
            civilian secretariat of the military departments and the staffs
            of the military service chiefs.
                (5) An assessment of the possible benefits that could be
            derived from reducing the number of civilian officers in
    the military departments who are appointed by and with the advice and
    consent of the Senate.

    [[Page 110 STAT. 2619]]

        (b) Report.--Not later than March 1, 1997, the Secretary of Defense
    shall submit to the congressional defense committees a report
    containing--
                (1) the findings and conclusions of the Secretary resulting
            from the review under subsection (a); and
                (2) a plan for implementing resulting recommendations,
            including proposals for legislation (with supporting rationale)
            that would be required as a result of the review.

        (c) Reduction in Total Number of Personnel Assigned.--In developing
    the plan under subsection (b)(2), the Secretary shall make every effort
    to provide for significant reductions in the overall number of military
    and civilian personnel assigned to or serving in the military department
    headquarters staffs.
        (d) Military Department Headquarters Staffs Defined.--For the
    purposes of this section, the term ``military department headquarters
    staffs'' means the offices, organizations, and other elements of the
    Department of Defense comprising the following:
                (1) The Office of the Secretary of the Army.
                (2) The Army Staff.
                (3) The Office of the Secretary of the Air Force.
                (4) The Air Staff.
                (5) The Office of the Secretary of the Navy.
                (6) The Office of the Chief of Naval Operations.
                (7) Headquarters, Marine Corps.
    SEC. 905. MATTERS <<NOTE: 10 USC 161 note.>> TO BE CONSIDERED IN
                            NEXT ASSESSMENT OF CURRENT MISSIONS,
                            RESPONSIBILITIES, AND FORCE STRUCTURE OF
                            THE UNIFIED COMBATANT COMMANDS.

        The Chairman of the Joint Chiefs of Staff shall consider, as part of
    the next periodic review by the Chairman of the missions,
    responsibilities, and force structure of the unified combatant commands
    pursuant to section 161(b) of title 10, United States Code, the
    following matters:
                (1) Whether there exists an adequate distribution of
            threats, mission requirements, and responsibilities for
            geographic areas among the regional unified combatant commands.
                (2) Whether reductions in the overall force structure of the
            Armed Forces permit the United States to better execute its
            warfighting plans through fewer or differently configured
            unified combatant commands, including--
                        (A) a total of five or fewer commands, all of which
                    are regional;
                        (B) a total of three commands consisting of an
                    eastward-oriented command, a westward-oriented command,
                    and a central command;
                        (C) a purely functional command structure, involving
                    (for example) a first theater command, a second theater
                    command, a logistics command, a special contingencies
                    command, and a strategic command; or
                        (D) any other command structure or configuration the
                    Chairman finds appropriate.
                (3) Whether any missions, staff, facilities, equipment,
            training programs, or other assets or activities of the unified
            combatant commands are redundant.
                (4) Whether warfighting requirements are adequate to justify
            the current functional commands.

    [[Page 110 STAT. 2620]]

                (5) Whether the exclusion of certain nations from the Areas
            of Responsibility of the unified combatant commands presents
            difficulties with respect to the achievement of United States
            national security objectives in those areas.
                (6) Whether the current geographic boundary between the
            United States Central Command and the United States European
            Command through the Middle East could create command conflicts
            in the context of a major regional conflict in the Middle East
            region.
    SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION SYSTEMS
                            IN TIME OF WAR.

        (a) Authority of Secretary of Defense.--Section 4742 of title 10,
    United States Code, is amended by striking out ``Secretary of the Army''
    and inserting in lieu thereof ``Secretary of Defense''.
        (b) Transfer of Section.--Such section, as amended by subsection
    (a), is transferred to the end of chapter 157 of such title and is
    redesignated as section 2644.
        (c) Conforming Repeal.--Section 9742 of such title is repealed.
        (d) Clerical Amendments.--(1) The table of sections at the beginning
    of chapter 157 of such title is amended by adding at the end the
    following new item:

    ``2644. Control of transportation systems in time of war.''.

        (2) The table of sections at the beginning of chapter 447 of such
    title is amended by striking out the item relating to section 4742.
        (3) The table of sections at the beginning of chapter 947 of such
    title is amended by striking out the item relating to section 9742.
    SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO
                            CONTINUED OPERATION OF THE UNIFORMED
                            SERVICES UNIVERSITY OF THE HEALTH
                            SCIENCES.

        (a) Codification of Existing Law.--(1) Chapter 104 of title 10,
    United States Code, is amended by inserting after section 2112 the
    following new section:

    ``Sec. 2112a. Continued operation of University

        ``(a) Closure Prohibited.--The University may not be closed.
        ``(b) Personnel <<NOTE: Effective date.>> Strength.--During the
    five-year period beginning on October 1, 1996, the personnel staffing
    levels for the University may not be reduced below the personnel
    staffing levels for the University as of October 1, 1993.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2112 the
    following new item:

    ``2112a. Continued operation of University.''.

        (b) Repeal of Superseded Law.--(1) Section 922 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 2829; 10 U.S.C. 2112 note) is amended by striking out subsection
    (a).
        (2) Section 1071 of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 U.S.C. 2112
    note) is amended by striking out subsection (b).

    [[Page 110 STAT. 2621]]

    SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

        Section <<NOTE: Effective date.>> 181 of title 10, United States
    Code, as added effective January 31, 1997, is amended by adding at the
    end the following new subsection:

        ``(d) Availability of Oversight Information to Congressional Defense
    Committees.--(1) The Secretary of Defense shall ensure that, in the case
    of a recommendation by the Chairman to the Secretary that is approved by
    the Secretary, oversight information with respect to such recommendation
    that is produced as a result of the activities of the Joint Requirements
    Oversight Council is made available in a timely fashion to the
    congressional defense committees.
        ``(2) In this subsection:
                ``(A) The term `oversight information' means information and
            materials comprising analysis and justification that are
            prepared to support a recommendation that is made to, and
            approved by, the Secretary of Defense.
                ``(B) The term `congressional defense committees' means--
                        ``(i) the Committee on Armed Services and the
                    Committee on Appropriations of the Senate; and
                        ``(ii) the Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.
    SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

        Section 172(a) of title 10, United States Code, is amended by
    striking out ``a joint board of officers selected by them'' and
    inserting in lieu thereof ``a joint board selected by them composed of
    officers, civilian officers and employees of the Department of Defense,
    or both''.
    SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON THE
                            FOREIGN TRADE ZONE BOARD.

        The first section of the Act of June 18, 1934 (Public Law Numbered
    397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C. 81a), popularly
    known as the ``Foreign Trade Zones Act'', is amended--
                (1) in subsection (b), by striking out ``the Secretary of
            the Treasury, and the Secretary of War'' and inserting in lieu
            thereof ``and the Secretary of the Treasury''; and
                (2) in subsection (c), by striking out ``Alaska, Hawaii,''.
    SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION BOARDS.

        (a) Selection of Board Members.--(1) Chapter 134 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 2255. Aircraft accident investigation boards: composition
                        requirements

        ``(a) Required Membership of Boards.--Whenever the Secretary of a
    military department convenes an aircraft accident investigation board to
    conduct an accident investigation (as described in section 2254(a)(2) of
    this title) with respect to a Class A accident involving an aircraft
    under the jurisdiction of the Secretary, the Secretary shall select the
    membership of the board so that--
                ``(1) a majority of the members (or in the case of a board
            consisting of a single member, the member) is selected from

    [[Page 110 STAT. 2622]]

            units other than the mishap unit or a unit subordinate to the
            mishap unit; and
                ``(2) in the case of a board consisting of more than one
            member, at least one member of the board is a member of the
            armed forces or an officer or an employee of the Department of
            Defense who possesses knowledge and expertise relevant to
            aircraft accident investigations.

        ``(b) Exception.--(1) The Secretary of the military department
    concerned may waive the requirement of subsection (a)(1) in the case of
    an aircraft accident if the Secretary determines that--
                ``(A)  it  is  not  practicable  to  meet  the  requirement
            because of--
                        ``(i) the remote location of the aircraft accident;
                        ``(ii) an urgent need to promptly begin the investi-
                    gation; or
                        ``(iii) a lack of available persons outside of the
                    mishap unit who have adequate knowledge and expertise
                    regarding the type of aircraft involved in the accident;
                    and
                ``(B) the objectivity and independence of the aircraft
            accident investigation board will not be compromised.

        ``(2) <<NOTE: Notification.>> The Secretary shall notify Congress of
    a waiver exercised under this subsection and the reasons therefor.

        ``(c) Consultation Requirement.--In the case of an aircraft accident
    investigation board consisting of a single member, the member shall
    consult with a member of the armed forces or an officer or an employee
    of the Department of Defense who possesses knowledge and expertise
    relevant to aircraft accident investigations.
        ``(d) Designation of Class A Accidents.--Not later than 60 days
    after an aircraft accident involving an aircraft under the jurisdiction
    of the Secretary of a military department, the Secretary shall determine
    whether the aircraft accident should be designated as a Class A accident
    for purposes of this section.
        ``(e) Definitions.--In this section:
                ``(1) The term `Class A accident' means an accident
            involving an aircraft that results in--
                        ``(A) the loss of life or permanent disability;
                        ``(B) damages to the aircraft, other property, or a
                    combination of both, in an amount in excess of the
                    amount specified by the Secretary of Defense for
                    purposes of determining Class A accidents; or
                        ``(C) the destruction of the aircraft.
                ``(2) The term `mishap unit', with respect to an aircraft
            accident investigation, means the unit of the armed forces (at
            the squadron or battalion level or equivalent) to which was
            assigned the flight crew of the aircraft that sustained the
            accident that is the subject of the investigation.''.

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

    ``2255. Aircraft accident investigation boards: composition
               requirements.''.

        (b) Effective <<NOTE: Applicability. 10 USC 2255 note.>> Date.--
    Section 2255 of title 10, United States Code, as added by subsection
    (a), shall apply with respect to any aircraft accident investigation
    board convened by the Secretary of a military department after the end
    of the six-month period beginning on the date of the enactment of this
    Act.

    [[Page 110 STAT. 2623]]

    SEC. 912. <<NOTE: 10 USC 111 note.>> MISSION OF THE WHITE HOUSE
                COMMUNICATIONS AGENCY.

        (a) Telecommunications Support.--The Secretary of Defense shall
    ensure that the activities of the White House Communications Agency in
    providing support services on a nonreimbursable basis for the President
    from funds appropriated for the Department of Defense for any fiscal
    year are limited to the provision of telecommunications support to the
    President and Vice President and to related elements (as defined in
    regulations of that agency and specified by the President with respect
    to particular individuals within those related elements).

        (b) Other Support.--Support services other than telecommunications
    support services described in subsection (a) may be provided by the
    Department of Defense for the President through the White House
    Communications Agency on a reimbursable basis.
        (c) White House Communications Agency.--For purposes of this
    section, the term ``White House Communications Agency'' means the
    element of the Department of Defense within the Defense Communications
    Agency that is known on the date of the enactment of this Act as the
    White House Communications Agency and includes any successor agency.
        (d) Report on Issues Raised by DOD Inspector General Review of White
    House Communications Agency.--Not later than October 1, 1996, or 30 days
    after the date of the enactment of this Act, whichever is later, the
    Secretary of Defense shall submit to Congress a report setting forth the
    actions taken by the Secretary to address the issues raised by the
    report of the Department of Defense Inspector General reviewing the
    mission of the White House Communications Agency.
        (e) Quarterly Reports During Fiscal Year 1997.--Not later than 30
    days after the end of each quarter of fiscal year 1997, the Secretary of
    Defense shall submit to Congress a report describing the support
    services other than telecommunications support services described in
    subsection (a) that were provided during the preceding quarter by the
    Department of Defense for the President through the White House
    Communications Agency.
        (f) Effective <<NOTE: Applicability.>> Date.--This section takes
    effect on October 1, 1997, and applies to funds appropriated for the
    Department of Defense for any fiscal year after fiscal year 1997.

        Subtitle B--Force <<NOTE: Military Force Structure Review Act of
    1996. 10 USC 111 note.>> Structure Review

    SEC. 921. SHORT TITLE.

        This subtitle may be cited as the ``Military Force Structure Review
    Act of 1996''.

    SEC. 922. FINDINGS.

        Congress makes the following findings:
                (1) Since the collapse of the Soviet Union in 1991, the
            United States has conducted two substantial assessments of the
            force structure of the Armed Forces necessary to meet United
            States defense requirements.
                (2) The assessment by the Bush Administration (known as the
            ``Base Force'' assessment) and the assessment by the Clinton
            Administration (known as the ``Bottom-Up Review'') were intended
            to reassess the force structure of the Armed

    [[Page 110 STAT. 2624]]

            Forces in light of the changing realities of the post-Cold War
            world.
                (3) Both assessments served an important purpose in focusing
            attention on the need to reevaluate the military posture of the
            United States, but the pace of global change necessitates a new,
            comprehensive assessment of the defense strategy of the United
            States and the force structure of the Armed Forces required to
            meet the threats to the United States in the twenty-first
            century.
                (4) The Bottom-Up Review has been criticized on several
            points, including--
                        (A) the assumptions underlying the strategy of
                    planning to fight and win two nearly simultaneous major
                    regional conflicts;
                        (B) the force levels recommended to carry out that
                    strategy; and
                        (C) the funding proposed for such recommended force
                    levels.
                (5) In response to the recommendations of the Commission on
            Roles and Missions of the Armed Forces, the Secretary of Defense
            endorsed the concept of conducting a quadrennial review of the
            defense program at the beginning of each newly elected
            Presidential administration, and the Department intends to
            complete the first such review in 1997.
                (6) The review is to involve a comprehensive examination of
            defense strategy, the force structure of the active, guard, and
            reserve components, force modernization plans, infrastructure,
            and other elements of the defense program and policies in order
            to determine and express the defense
    strategy of the United States and to establish a revised defense program
    through the year 2005.
                (7) In order to ensure that the force structure of the Armed
            Forces is adequate to meet the challenges to the national
            security interests of the United States in the twenty-first
            century, to assist the Secretary of Defense in conducting the
            review referred to in paragraph (5), and to assess the
            appropriate force structure of the Armed Forces through the year
            2010 and beyond (if practicable), it is important to provide for
            the conduct of an independent, nonpartisan review of the force
            structure that is more comprehensive than prior assessments of
            the force structure, extends beyond the quadrennial defense
            review, and explores innovative and forward-thinking ways of
            meeting such challenges.

    SEC. 923. QUADRENNIAL DEFENSE REVIEW.

        (a) Requirement in 1997.--The Secretary of Defense, in consultation
    with the Chairman of the Joint Chiefs of Staff, shall complete in 1997 a
    review of the defense program of the United States intended to satisfy
    the requirements for a Quadrennial Defense Review as identified in the
    recommendations of the Commission on Roles and Missions of the Armed
    Forces. The review shall include a comprehensive examination of the
    defense strategy, force structure, force modernization plans,
    infrastructure, budget plan, and other elements of the defense program
    and policies with a view toward determining and expressing the defense
    strategy of the United States and establishing a revised defense program
    through the year 2005.

    [[Page 110 STAT. 2625]]

        (b) Involvement of National Defense Panel.--(1) The Secretary shall
    apprise the National Defense Panel established under section 924, on an
    ongoing basis, of the work undertaken in the conduct of the review.
        (2) Not later than March 14, 1997, the Chairman of the National
    Defense Panel shall submit to the Secretary the Panel's assessment of
    work undertaken in the conduct of the review as of that date and shall
    include in the assessment the recommendations of the Panel for
    improvements to the review, including recommendations for additional
    matters to be covered in the review.
        (c) Assessments of Review.--Upon completion of the review, the
    Chairman of the Joint Chiefs of Staff and the Chairman of the National
    Defense Panel, on behalf of the Panel, shall each prepare and submit to
    the Secretary such Chairman's assessment of the review in time for the
    inclusion of the assessment in its entirety in the report under
    subsection (d).
        (d) Report.--Not later than May 15, 1997, the Secretary shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a comprehensive report
    on the review. The report shall include the following:
                (1) The results of the review, including a comprehensive
            discussion of the defense strategy of the United States and the
            force structure best suited to implement that strategy.
                (2) The threats examined for purposes of the review and the
            scenarios developed in the examination of such threats.
                (3) The assumptions used in the review, including
            assumptions relating to the cooperation of allies and mission-
            sharing, levels of acceptable risk, warning times, and intensity
            and duration of conflict.
                (4) The effect on the force structure of preparations for
            and participation in peace operations and military operations
            other than war.
                (5) The effect on the force structure of the utilization by
            the Armed Forces of technologies anticipated to be available by
            the year 2005, including precision guided munitions, stealth,
            night vision, digitization, and communications, and the changes
            in doctrine and operational concepts that would result from the
            utilization of such technologies.
                (6) The manpower and sustainment policies required under the
            defense strategy to support engagement in conflicts lasting more
            than 120 days.
                (7) The anticipated roles and missions of the reserve
            components in the defense strategy and the strength,
            capabilities, and equipment necessary to assure that the reserve
            components can capably discharge those roles and missions.
                (8) The appropriate ratio of combat forces to support forces
            (commonly referred to as the ``tooth-to-tail'' ratio) under the
            defense strategy, including, in particular, the appropriate
            number and size of headquarter units and Defense Agencies for
            that purpose.
                (9) The air-lift and sea-lift capabilities required to
            support the defense strategy.
                (10) The forward presence, pre-positioning, and other
            anticipatory deployments necessary under the defense strategy
            for conflict deterrence and adequate military response to
            anticipated conflicts.

    [[Page 110 STAT. 2626]]

                (11) The extent to which resources must be shifted among two
            or more theaters under the defense strategy in the event of
            conflict in such theaters.
                (12) The advisability of revisions to the Unified Command
            Plan as a result of the defense strategy.
                (13) Any other matter the Secretary considers appropriate.

    SEC. 924. NATIONAL DEFENSE PANEL.

        (a) Establishment.--Not later than December 1, 1996, the Secretary
    of Defense shall establish a nonpartisan, independent panel to be known
    as the National Defense Panel (in this section referred to as the
    ``Panel''). The Panel shall have the duties set forth in this section.
        (b) Membership.--The Panel shall be composed of a chairman and eight
    other individuals appointed by the Secretary, in consultation with the
    chairman and ranking member of the Committee on Armed Services of the
    Senate and the chairman and ranking member of the Committee on National
    Security of the House of Representatives, from among individuals in the
    private sector who are recognized experts in matters relating to the
    national security of the United States.
        (c) Duties.--The Panel shall--
                (1) conduct and submit to the Secretary the assessment of
            the review under section 923 that is required by subsection
            (b)(2) of that section;
                (2) conduct and submit to the Secretary the comprehensive
            assessment of the review that is required by subsection (c) of
            that section upon completion of the review; and
                (3) conduct the assessment of alternative force structures
            for the Armed Forces required under subsection (d).

        (d) Alternative Force Structure Assessment.--(1) The Panel shall
    submit to the Secretary an independent assessment of a variety of
    possible force structures of the Armed Forces through the year 2010 and
    beyond, including the force structure identified in the report on the
    review under section 923(d). The purpose of the assessment is to develop
    proposals for an ``above the line'' force structure of the Armed Forces
    and to provide the Secretary and Congress recommendations regarding the
    optimal force structure to meet anticipated threats to the national
    security of the United States through the time covered by the
    assessment.
        (2) In conducting the assessment, the Panel shall examine a variety
    of potential threats (including near-term threats and long-term threats)
    to the national security interests of the United States, including the
    following:
                (A) Conventional threats across a spectrum of conflicts.
                (B) The proliferation of weapons of mass destruction and the
            means of delivering such weapons, and the illicit transfer of
            technology relating to such weapons.
                (C) The vulnerability of United States technology to
            nontraditional threats, including information warfare.
                (D) Domestic and international terrorism.
                (E) The emergence of a major potential adversary having
            military capabilities similar to those of the United States.
                (F) Any other significant threat, or combination of threats,
            identified by the Panel.

    [[Page 110 STAT. 2627]]

        (3) For purposes of the assessment, the Panel shall develop a
    variety of scenarios requiring a military response by the United States,
    including the following:
                (A) Scenarios developed in light of the threats examined
            under paragraph (2).
                (B) Scenarios developed in light of a continuum of conflicts
            ranging from a conflict of lesser magnitude than the conflict
            described in the Bottom-Up Review to a conflict of greater
            magnitude than the conflict so described.

        (4) As part of the assessment, the Panel shall also--
                (A) develop recommendations regarding a variety of force
            structures for the Armed Forces that permit the forward
            deployment of sufficient air, land, and sea-based forces to
            provide an effective deterrent to conflict and to permit a
            military response by the United States to the scenarios
            developed under paragraph (3);
                (B) to the extent practicable, estimate the funding required
            by fiscal year, in constant fiscal year 1997 dollars, to
            organize, equip, and support the forces contemplated under the
            force structures assessed in the assessment; and
                (C) comment on each of the matters also to be included by
            the Secretary in the report required by section 923(d).

        (e) Report.--(1) Not later than December 1, 1997, the Panel shall
    submit to the Secretary a report setting forth the activities and the
    findings and recommendations of the Panel under subsection (d),
    including any recommendations for legislation that the Panel considers
    appropriate.
        (2) Not later than December 15, 1997, the Secretary shall, after
    consultation with the Chairman of the Joint Chiefs of Staff, submit to
    the committees referred to in subsection (b) a copy of the report under
    paragraph (1), together with the Secretary's comments on the report.
        (f) Information From Federal Agencies.--The Panel may secure
    directly from the Department of Defense and any of its components and
    from any other Federal department and agency such information as the
    Panel considers necessary to carry out its duties under this section.
    The head of the department or agency concerned shall ensure that
    information requested by the Panel under this subsection is promptly
    provided.
        (g) Personnel Matters.--(1) Each member of the Panel shall be
    compensated at a rate equal to the daily equivalent of the annual rate
    of basic pay prescribed for level IV of the Executive Schedule under
    section 5315 of title 5, United States Code, for each day (including
    travel time) during which such member is engaged in the performance of
    the duties of the Panel.
        (2) The members of the Panel shall be allowed travel expenses,
    including per diem in lieu of subsistence, at rates authorized for
    employees of agencies under subchapter I of chapter 57 of title 5,
    United States Code, while away from their homes or regular places of
    business in the performance of services for the Panel.
        (3)(A) The chairman of the Panel may, without regard to the civil
    service laws and regulations, appoint and terminate an executive
    director, and a staff of not more than four additional individuals, if
    the Panel determines that an executive director and staff are necessary
    in order for the Panel to perform its duties effectively. The employment
    of an executive director shall be subject to confirmation by the Panel.

    [[Page 110 STAT. 2628]]

        (B) The chairman may fix the compensation of the executive director
    without regard to the provisions of chapter 51 and subchapter III of
    chapter 53 of title 5, United States Code, relating to classification of
    positions and General Schedule pay rates, except that the rate of pay
    for the executive director may not exceed the rate payable for level V
    of the Executive Schedule under section 5316 of such title.
        (4) Any Federal Government employee may be detailed to the Panel
    without reimbursement, and such detail shall be without interruption or
    loss of civil service status or privilege. The Secretary shall ensure
    that sufficient personnel are detailed to the Panel to enable the Panel
    to carry out its duties effectively.

        (5) To the maximum extent practicable, the members and employees of
    the Panel shall travel on military aircraft, military ships, military
    vehicles, or other military conveyances when travel is necessary in the
    performance of a duty of the Panel, except that no such aircraft, ship,
    vehicle, or other conveyance may be scheduled primarily for the
    transportation of any such member or employee when the cost of
    commercial transportation is less expensive.
        (h) Administrative Provisions.--(1) The Panel may use the United
    States mails and obtain printing and binding services in the same manner
    and under the same conditions as other departments and agencies of the
    Federal Government.
        (2) The Secretary shall furnish the Panel any administrative and
    support services requested by the Panel.
        (3) The Panel may accept, use, and dispose of gifts or donations of
    services or property.
        (i) Payment of Panel Expenses.--The compensation, travel expenses,
    and per diem allowances of members and employees of the Panel shall be
    paid out of funds available to the Department of Defense for the payment
    of compensation, travel allowances, and per diem allowances,
    respectively, of civilian employees of the Department. The other
    expenses of the Panel shall be paid out of funds available to the
    Department for the payment of similar expenses incurred by the
    Department.
        (j) Termination.--The Panel shall terminate 30 days after the date
    on which the Panel submits its report to the Secretary under subsection
    (e).

    SEC. 925. POSTPONEMENT OF DEADLINES.

        If the Presidential election in 1996 results in the election of a
    new President, each deadline set forth in this subtitle shall be
    postponed by three months.

    SEC. 926. DEFINITIONS.

        In this subtitle:
                (1) The term `` `above the line' force structure of the
            Armed Forces'' means the force structure (including numbers,
            strengths, and composition and major items of equipment) for the
            Armed Forces at the following unit levels:
                        (A) In the case of the Army, the division.
                        (B) In the case of the Navy, the battle group.
                        (C) In the case of the Air Force, the wing.
                        (D) In the case of the Marine Corps, the
                    expeditionary force.
                        (E) In the case of special operations forces of the
                    Army, Navy, or Air Force, the major operating unit.

    [[Page 110 STAT. 2629]]

                        (F) In the case of the strategic forces, the
                    ballistic missile submarine fleet, the heavy bomber
                    force, and the intercontinental ballistic missile force.
                (2) The term ``Commission on Roles and Missions of the Armed
            Forces'' means the Commission on Roles and Missions of the Armed
            Forces established by subtitle E of title IX of the National
            Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
            160; 107 Stat. 1738; 10 U.S.C. 111 note).
                (3) The term ``military operation other than war'' means any
            operation other than war that requires the utilization of the
            military capabilities of the Armed Forces, including peace
            operations, humanitarian assistance operations and activities,
            counter-terrorism operations and activities, disaster relief
            activities, and counter-drug operations and activities.
                (4) The term ``peace operations'' means military operations
            in support of diplomatic efforts to reach long-term political
            settlements of conflicts and includes peacekeeping operations
            and peace enforcement operations.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Incorporation of classified annex.
    Sec. 1003. Authority for obligation of certain unauthorized fiscal year
                          1996 defense appropriations.
    Sec. 1004. Authorization of prior emergency supplemental appropriations
                          for fiscal year 1996.
    Sec. 1005. Format for budget requests for Navy/Marine Corps and Air
                          Force ammunition accounts.
    Sec. 1006. Format for annual budget requests for Defense Airborne
                          Reconnaissance Program.
    Sec. 1007. Limitation on use of Department of Defense funds transferred
                          to the Coast Guard.
    Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
    Sec. 1009. Designation and liability of disbursing and certifying
                          officials for the Coast Guard.
    Sec. 1010. Authority to suspend or terminate collection actions against
                          deceased members of the Coast Guard.
    Sec. 1011. Department of Defense disbursing official check cashing and
                          exchange transactions.

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1021. Repeal of requirement for continuous applicability of
                          contracts for phased maintenance of AE class
                          ships.
    Sec. 1022. Funding for second and third maritime prepositioning ships
                          out of
                          National Defense Sealift Fund.
    Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
    Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
    Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                       Subtitle C--Counter-Drug Activities

    Sec. 1031. Authority to provide additional support for counter-drug
                          activities of Mexico.
    Sec. 1032. Availability of funds for certain drug interdiction and
                          counter-drug
                          activities.
    Sec. 1033. Transfer of excess personal property to support law
                          enforcement
                          activities.
    Sec. 1034. Sale by Federal departments or agencies of chemicals used to
                          manufacture controlled substances.

                         Subtitle D--Reports and Studies

    Sec. 1041. Annual report on Operation Provide Comfort and Operation
                          Enhanced Southern Watch.

    [[Page 110 STAT. 2630]]

    Sec. 1042. Annual report on emerging operational concepts.
    Sec. 1043. Report on Department of Defense military child care programs.
    Sec. 1044. Report on Department of Defense military youth programs.
    Sec. 1045. Quarterly reports regarding coproduction agreements.
    Sec. 1046. Report on witness interview procedures for Department of
                          Defense criminal investigations.
    Sec. 1047. Report on military readiness requirements of the Armed
                          Forces.
    Sec. 1048. Report on NATO enlargement.

             Subtitle E--Management of Armed Forces Retirement Home

    Sec. 1051. Retirement Home Boards of Directors.
    Sec. 1052. Acceptance of uncompensated services.
    Sec. 1053. Disposal of tract of real property in the District of
                          Columbia.

                            Subtitle F--Other Matters

    Sec. 1061. Policy on protection of national information infrastructure
                          against
                          strategic attack.
    Sec. 1062. Information systems security program.
    Sec. 1063. Authority to accept services from foreign governments and
                          international organizations for defense purposes.
    Sec. 1064. Prohibition on collection and release of detailed satellite
                          imagery
                          relating to Israel.
    Sec. 1065. George C. Marshall European Center for Strategic Security
                          Studies.
    Sec. 1066. Authority to award to civilian participants in the defense of
                          Pearl
                          Harbor the Congressional Medal previously
                          authorized only for
                          military participants in the defense of Pearl
                          Harbor.
    Sec. 1067. Assimilative crimes authority for traffic offenses on
                          military installations.
    Sec. 1068. Uniform Code of Military Justice amendments.
    Sec. 1069. Punishment of interstate stalking.
    Sec. 1070. Participation of members, dependents, and other persons in
                          crime
                          prevention efforts at installations.
    Sec. 1071. Display of State flags at installations and facilities of the
                          Department of Defense.
    Sec. 1072. Treatment of excess operational support airlift aircraft.
    Sec. 1073. Correction to statutory references to certain Department of
                          Defense
                          organizations.
    Sec. 1074. Technical and clerical amendments.
    Sec. 1075. Modification to third-party liability to United States for
                          tortious infliction of injury or disease on
                          members of the uniformed services.
    Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
    Sec. 1077. Exemption from requirements applicable to savings
                          associations for
                          certain savings institutions serving military
                          personnel.
    Sec. 1078. Improvements to National Security Education Program.
    Sec. 1079. Aviation and vessel war risk insurance.
    Sec. 1080. Designation of memorial as National D-Day Memorial.
    Sec. 1081. Sense of Congress regarding semiconductor trade agreement
                          between United States and Japan.
    Sec. 1082. Agreements for exchange of defense personnel between the
                          United States and foreign countries.
    Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
    Sec. 1084. Defense burdensharing.

                          Subtitle A--Financial Matters

    SEC. 1001. TRANSFER AUTHORITY.

        (a) Authority To Transfer Authorizations.--(1) Upon determination by
    the Secretary of Defense that such action is necessary in the national
    interest, the Secretary may transfer amounts of authorizations made
    available to the Department of Defense in this division for fiscal year
    1997 between any such authorizations for that fiscal year (or any
    subdivisions thereof). Amounts of authorizations so transferred shall be
    merged with and be available for the same purposes as the authorization
    to which transferred.
        (2) The total amount of authorizations that the Secretary of Defense
    may transfer under the authority of this section may not exceed
    $2,000,000,000.

    [[Page 110 STAT. 2631]]

        (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 of conference to accompany the conference report on the
    bill H.R. 3230 of the One Hundred Fourth Congress and transmitted to the
    President is hereby incorporated into this Act.
        (b) Construction With Other Provisions of Act.--The amounts
    specified in the Classified Annex are not in addition to amounts
    authorized to be appropriated by other provisions of this Act.
        (c) Limitation on Use of Funds.--Funds appropriated pursuant to an
    authorization contained in this Act that are made available for a
    program, project, or activity referred to in the Classified Annex may
    only be expended for such program, project, or activity in accordance
    with such terms, conditions, limitations, restrictions, and requirements
    as are set out for that program, project, or activity in the Classified
    Annex.

        (d) Distribution <<NOTE: President.>> of Classified Annex.--The
    President shall provide for appropriate distribution of the Classified
    Annex, or of appropriate portions of the annex, within the executive
    branch of the Government.
    SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL
                              YEAR 1996 DEFENSE APPROPRIATIONS.

        (a) Authority.--The amounts described in subsection (b) may be
    obligated and expended for programs, projects, and activities of the
    Department of Defense in accordance with fiscal year 1996 defense
    appropriations.
        (b) Covered Amounts.--The amounts referred to in subsection (a) are
    the amounts provided for programs, projects, and activities of the
    Department of Defense in fiscal year 1996 defense appropriations that
    are in excess of the amounts provided for such programs, projects, and
    activities in fiscal year 1996 defense authorizations.
        (c) Definitions.--For the purposes of this section:
                (1) Fiscal year 1996 defense appropriations.--The term
            ``fiscal year 1996 defense appropriations'' means amounts
            appropriated or otherwise made available to the Department of
            Defense for fiscal year 1996 in the Department of Defense
            Appropriations Act, 1996 (Public Law 104-61).
                (2) Fiscal year 1996 defense authorizations.--The term
            ``fiscal year 1996 defense authorizations'' means amounts
            authorized to be appropriated for the Department of Defense

    [[Page 110 STAT. 2632]]

            for fiscal year 1996 in the National Defense Authorization Act
            for Fiscal Year 1996 (Public Law 104-106).
    SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL
                              APPROPRIATIONS FOR FISCAL YEAR 1996.

        Amounts authorized to be appropriated to the Department of Defense
    for fiscal year 1996 in the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106) are hereby adjusted, with respect
    to any such authorized amount, by the amount by which appropriations
    pursuant to such authorization were increased (by a supplemental
    appropriation) or decreased (by a rescission), or both, in the Omnibus
    Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
    134).
    SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE CORPS AND
                              AIR FORCE AMMUNITION ACCOUNTS.

        Section 114 of title 10, United States Code, is amended by adding at
    the end the following new subsection:
        ``(f) In each budget submitted by the President to Congress under
    section 1105 of title 31, amounts requested for procurement of
    ammunition for the Navy and Marine Corps, and for procurement of
    ammunition for the Air Force, shall be set forth separately from other
    amounts requested for procurement.''.
    SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE AIRBORNE
                              RECONNAISSANCE PROGRAM.

        (a) Separate Display Required.--The Secretary of Defense shall
    ensure that in the budget justification documents for any fiscal year
    there are set forth separately the amount requested for research,
    development, test, and evaluation, and the amount requested for
    procurement, for each program area within the Defense Airborne
    Reconnaissance Program.
        (b) Program Areas Within Defense Airborne Reconnaissance Program.--
    For purposes of subsection (a), the programs of the Defense Airborne
    Reconnaissance Program shall be categorized as being within one of the
    following areas:
                (1) Tactical unmanned aerial vehicles.
                (2) Endurance unmanned aerial vehicles.
                (3) Airborne reconnaissance systems.
                (4) Manned reconnaissance systems.
                (5) Distributed common ground systems.
                (6) Any additional program area established by the Secretary
            of Defense.

        (c) Budget Justification Documents.--For purposes of subsection (a),
    the term ``budget justification documents'' means the supporting budget
    documentation submitted to the congressional defense committees in
    support of the budget of the Department of Defense for a fiscal year as
    included in the budget of the President submitted under section 1105 of
    title 31, United States Code, for that fiscal year.
    SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS
                              TRANSFERRED TO THE COAST GUARD.

        (a) Limitation to National Security Functions.--Funds appropriated
    to the Department of Defense for fiscal year 1997 that are transferred
    pursuant to law to the Coast Guard may be used only for the performance
    of national security functions of the Coast Guard in support of the
    Department of Defense.

    [[Page 110 STAT. 2633]]

        (b) Certification Required.--Funds appropriated to the Department of
    Defense for fiscal year 1997 may not be transferred to the Coast Guard
    until the Secretary of Defense and the Secretary of Transportation
    jointly certify to Congress that the funds so transferred will be used
    only in accordance with the limitation in subsection (a).
        (c) Periodic GAO Audits.--The Comptroller General of the United
    States shall--
                (1) audit, from time to time, the use of funds transferred
            to the Coast Guard from appropriations for the Department of
            Defense for fiscal year 1997 in order to verify that those funds
            are being used in accordance with the limitation in subsection
            (a); and
                (2) <<NOTE: Notification.>> notify the congressional defense
            committees of any use of those funds that, in the judgment of
            the Comptroller General, is a violation of that limitation.
    SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF THE NAVY.

        (a) Authority.--Section 2221 of title 10, United States Code, is
    amended--
                (1) by adding at the end of subsection (a) the following:
                ``(3) The Fisher House Trust Fund, Department of the
            Navy.'';
                (2) in subsection (c)--
                        (A) by redesignating paragraph (3) as paragraph
                    (4); and
                        (B) by inserting after paragraph (2) the following
                    new paragraph (3):

        ``(3) Amounts in the Fisher House Trust Fund, Department of the
    Navy, that are attributable to earnings or gains realized from
    investments shall be available for the operation and maintenance of
    Fisher houses that are located in proximity to medical treatment
    facilities of the Navy.''; and
                (3) in subsection (d)(1), by striking out ``or the Air
            Force'' and inserting in lieu thereof ``, the Air Force, or the
            Navy''.

        (b) Corpus <<NOTE: 10 USC 2221 note.>> of Trust Funds.--The
    Secretary of the Navy shall transfer to the Fisher House Trust Fund,
    Department of the Navy, established by section 2221(a)(3) of title 10,
    United States Code (as added by subsection (a)(1)), all amounts in the
    accounts for Navy installations and other facilities that, as of the
    date of the enactment of this Act, are available for operation and
    maintenance of Fisher houses, as defined in section 2221(d) of such
    title.

        (c) Conforming Amendments.--Section 1321 of title 31, United States
    Code, is amended--
                (1) by adding at the end of subsection (a) the following:
                ``(94) Fisher House Trust Fund, Department of the
            Navy.''; and
                (2) by adding at the end of subsection (b)(2) the following:
                ``(D) Fisher House Trust Fund, Department of the Navy.''.
    SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND
                              CERTIFYING OFFICIALS FOR THE COAST
                              GUARD.

        (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United
    States Code, is amended by adding at the end the following:
                ``(3) The Department of Transportation (with respect to
            public money available for expenditure by the Coast Guard when
            it is not operating as a service in the Navy).''.

    [[Page 110 STAT. 2634]]

        (2)(A) Chapter 17 of title 14, United States Code, is amended by
    adding at the end the following new section:
    ``Sec. 673. Designation, powers, and accountability of deputy
                      disbursing officials

        ``(a)(1) Subject to paragraph (3), a disbursing official of the
    Coast Guard may designate a deputy disbursing official--
                ``(A) to make payments as the agent of the disbursing
            official;
                ``(B) to sign checks drawn on disbursing accounts of the
            Secretary of the Treasury; and
                ``(C) to carry out other duties required under law.

        ``(2) The penalties for misconduct that apply to a disbursing
    official apply to a deputy disbursing official designated under this
    subsection.
        ``(3) A disbursing official may make a designation under paragraph
    (1) only with the approval of the Secretary of Transportation (when the
    Coast Guard is not operating as a service in the Navy).
        ``(b)(1) If a disbursing official of the Coast Guard dies, becomes
    disabled, or is separated from office, a deputy disbursing official may
    continue the accounts and payments in the name of the former disbursing
    official until the last day of the second month after the month in which
    the death, disability, or separation occurs. The accounts and payments
    shall be allowed, audited, and settled as provided by law. The Secretary
    of the Treasury shall honor checks signed in the name of the former
    disbursing official in the same way as if the former disbursing official
    had continued in office.
        ``(2) The deputy disbursing official, and not the former disbursing
    official or the estate of the former disbursing official, is liable for
    the actions of the deputy disbursing official under this subsection.
        ``(c)(1) Except as provided in paragraph (2), this section does not
    apply to the Coast Guard when section 2773 of title 10 applies to the
    Coast Guard by reason of the operation of the Coast Guard as a service
    in the Navy.
        ``(2) A designation of a deputy disbursing official under subsection
    (a) that is made while the Coast Guard is not operating as a service in
    the Navy continues in effect for purposes of section 2773 of title 10
    while the Coast Guard operates as a service in the Navy unless and until
    the designation is terminated by the disbursing official who made the
    designation or an official authorized to approve such a designation
    under subsection (a)(3) of such section.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``673. Designation, powers, and accountability of deputy disbursing
               officials.''.

        (b) Designation of Members of the Armed Forces To Have Authority To
    Certify Vouchers.--Section 3325(b) of title 31, United States Code, is
    amended by striking out ``members of the armed forces under the
    jurisdiction of the Secretary of Defense may certify vouchers when
    authorized, in writing, by the Secretary to do so'' and inserting in
    lieu thereof ``members of the armed forces may certify vouchers when
    authorized, in writing, by the Secretary of Defense or, in the case of
    the Coast Guard when it is not operating as a service in the Navy, by
    the Secretary of Transportation''.

    [[Page 110 STAT. 2635]]

        (c) Conforming Amendments.--(1) Section 1007(a) of title 37, United
    States Code, is amended by inserting after ``Secretary of Defense'' the
    following: ``(or the Secretary of Transportation, in the case of an
    officer of the Coast Guard when the Coast Guard is not operating as a
    service in the Navy)''.
        (2) Section 3527(b)(1) of title 31, United States Code, is
    amended--
                (A) in subparagraph (A)(i), by inserting after ``Department
            of Defense'' the following: ``(or the Secretary of
            Transportation, in the case of a disbursing official of the
            Coast Guard when the Coast Guard is not operating as a service
            in the Navy)''; and
                (B) in subparagraph (B), by inserting after ``or the
            Secretary of the appropriate military department'' the
            following: ``(or the Secretary of Transportation, in the case of
            a disbursing official of the Coast Guard when the Coast Guard is
            not operating as a service in the Navy)''.
    SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS
                              AGAINST DECEASED MEMBERS OF THE COAST
                              GUARD.

        Section 3711(g) of title 31, United States Code, is amended--
                (1) in paragraph (1), by striking out ``or Marine Corps''
            and inserting in lieu thereof ``Marine Corps, or Coast Guard
            during a period when the Coast Guard is operating as a service
            in the Navy'';
                (2) by redesignating paragraph (2) as paragraph (3); and
                (3) by inserting after paragraph (1) the following new
            paragraph (2):

        ``(2) The Secretary of Transportation may suspend or terminate an
    action by the Secretary under subsection (a) to collect a claim against
    the estate of a person who died while serving on active duty as a member
    of the Coast Guard if the Secretary determines that, under the
    circumstances applicable with respect to the deceased person, it is
    appropriate to do so.''.
    SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK CASHING
                              AND EXCHANGE TRANSACTIONS.

        Section 3342(b) of title 31, United States Code, is amended--
                (1) by striking out the period at the end of paragraph (3)
            and inserting in lieu thereof a semicolon;
                (2) by striking out ``and'' at the end of paragraph (5);
                (3) by striking out the period at the end of paragraph (6)
            and inserting in lieu thereof ``; or''; and
                (4) by adding at the end the following new paragraph:
                ``(7) a Federal credit union (as defined in section 101(1)
            of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at the
            request of the Secretary of Defense is operating on a United
            States military installation in a foreign country, but only if
            that country does not permit contractor-operated military
            banking facilities to operate on such installations.''.

    [[Page 110 STAT. 2636]]

                     Subtitle B--Naval Vessels and Shipyards

    SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY OF
                              CONTRACTS FOR PHASED MAINTENANCE OF AE
                              CLASS SHIPS.

        Section 1016 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed.
    SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME PREPOSITIONING
                              SHIPS OUT OF NATIONAL DEFENSE SEALIFT
                              FUND.

        (a) National Defense Sealift Fund.--To the extent provided in
    appropriations Acts, funds in the National Defense Sealift Fund may be
    obligated and expended for the purchase and conversion, or construction,
    of a total of three ships for the purpose of enhancing Marine Corps
    prepositioning ship squadrons.
        (b) Authorization of Appropriations.--Of the amount authorized to be
    appropriated under section 302(2), $240,000,000 is authorized to be
    appropriated for the purpose stated in subsection (a).

    SEC. 1023. <<NOTE: Wisconsin.>> TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF
                THE NAVY.

        (a) Requirement To Transfer Vessels.--The Secretary of the Navy
    shall transfer the six obsolete tugboats of the Navy specified in
    subsection (b) to the Northeast Wisconsin Railroad Transportation
    Commission, an instrumentality of the State of Wisconsin, if the
    Secretary determines that the tugboats are not needed for transfer,
    donation, or other disposal under title II of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
        (b) Vessels Covered.--The requirement in subsection (a) applies to
    the six decommissioned Cherokee class tugboats, listed as of the date of
    the enactment of this Act as being surplus to the Navy, that are
    designated
    as ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160.

        (c) Condition Relating to Environmental Compliance.--The Secretary
    shall require as a condition of the transfer of a vessel under
    subsection (a) that use of the vessel by the Commission not commence
    until the terms of any necessary environmental compliance letter or
    agreement with respect to that vessel have been complied with.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions (including a requirement that the
    transfer be at no cost to the Government) in connection with the
    transfers required by subsection (a) as the Secretary considers
    appropriate.
    SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO,
                              CALIFORNIA.

        (a) Transfer.--The Secretary of the Navy shall transfer the U.S.S.
    Drum (SSN-677) to the city of Vallejo, California, in accordance with
    this section and upon satisfactory completion of a ship donation
    application. Before making such transfer, the Secretary of the Navy
    shall remove from the vessel the reactor compartment and other
    classified and sensitive military equipment.

    [[Page 110 STAT. 2637]]

        (b) Funding.--As provided in section 7306(c) of title 10, United
    States Code, the transfer of the vessel authorized by this section shall
    be made at no cost to the United States (beyond the cost which the
    United States would otherwise incur for dismantling and recycling of the
    vessel).
        (c) Applicable Law.--The transfer under this section shall be
    subject to subsection (b) of section 7306 of title 10, United States
    Code, but the provisions of subsection (d) of such section shall not be
    applicable to such transfer.

    SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102).

        It is the sense of Congress that the Secretary of Defense should use
    existing authorities in law to seek the expeditious return, upon
    completion of service, of the former USS LCS
    102 (LSSL 102) from the Government of Thailand in order for the ship to
    be transferred to the United States Shipbuilding Museum in Quincy,
    Massachusetts.

                       Subtitle C--Counter-Drug Activities

    SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-
                              DRUG ACTIVITIES OF MEXICO.

        (a) Authority To Provide Additional Support.--Subject to subsection
    (e), during fiscal year 1997, the Secretary of Defense may provide the
    Government of Mexico with the support described in subsection (b) for
    the counter-drug activities of the Government of Mexico. The support
    provided under the authority of this subsection shall be in addition to
    support provided to the Government of Mexico under any other provision
    of law.
        (b) Types of Support.--The authority under subsection (a) is limited
    to the provision of the following types of support:
                (1) The transfer of nonlethal protective and utility per-
            sonnel equipment.
                (2) The transfer of the following nonlethal specialized
            equipment:
                        (A) Navigation equipment.
                        (B) Secure and nonsecure communications equipment.
                        (C) Photo equipment.
                        (D) Radar equipment.
                        (E) Night vision systems.
                        (F) Repair equipment and parts for equipment
                    referred to in subparagraphs (A), (B), (C), (D), and
                    (E).
                (3) The transfer of nonlethal components, accessories,
            attachments, parts (including ground support equipment),
            firmware, and software for aircraft or patrol boats, and related
            repair equipment.
                (4) The maintenance and repair of equipment of the
            Government of Mexico that is used for counter-drug activities.

        (c) Applicability of Other Support Authorities.--Except as otherwise
    provided in this section, the provisions of section 1004 of the National
    Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10
    U.S.C. 374 note) shall apply to the provision of support under this
    section.
        (d) Funding.--Of the amount authorized to be appropriated under
    section 301(19) for drug interdiction and counter-drug activi

    [[Page 110 STAT. 2638]]

    ties, not more than $8,000,000 shall be available for the provision of
    support under this section.
        (e) Limitations.--(1) <<NOTE: Certification.>> The Secretary may not
    obligate or expend funds to provide support under this section until 15
    days after the date on which the Secretary submits to the committees
    referred to in paragraph (3) the certification described in paragraph
    (2).

        (2) The certification referred to in paragraph (1) is a written
    certification of the following:
                (A) That the provision of support under this section will
            not adversely affect the military preparedness of the United
            States Armed Forces.
                (B) That the equipment and materiel provided as support will
            be used only by officials and employees of the Government of
            Mexico who have undergone a background check by that government.
                (C) That the Government of Mexico has certified to the
            Secretary that--
                        (i) the equipment and material provided as support
                    will be used only by the officials and employees
                    referred to in subparagraph (B);
                        (ii) none of the equipment or materiel will be
                    transferred (by sale, gift, or otherwise) to any person
                    or entity not authorized by the United States to receive
                    the equipment or materiel; and
                        (iii) the equipment and materiel will be used only
                    for the purposes intended by the United States
                    Government.
                (D) That the Government of Mexico has implemented, to the
            satisfaction of the Secretary, a system that will provide an
            accounting and inventory of the equipment and materiel provided
            as support.
                (E) That the departments, agencies, and instrumentalities of
            the Government of Mexico will grant United States Government
            personnel access to any of the equipment or materiel provided as
            support, or to any of the records relating to such equipment or
            materiel, under terms and conditions similar to the terms and
            conditions imposed with respect to such access under section
            505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
            2314(a)(3)).
                (F) That the Government of Mexico will provide security with
            respect to the equipment and materiel provided as support that
            is substantially the same degree of security that the United
            States Government would provide with respect to such equipment
            and materiel.
                (G) That the Government of Mexico will permit continuous
            observation and review by United States Government personnel of
            the use of the equipment and materiel provided as support under
            terms and conditions similar to the terms and conditions imposed
            with respect to such observation and review under section
            505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
            2314(a)(3)).

        (3) The committees referred to in this paragraph are the following:
                (A) The Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.
                (B) The Committee on National Security and the Committee on
            International Relations of the House of Representatives.

    [[Page 110 STAT. 2639]]

    SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDICTION AND
                              COUNTER-DRUG ACTIVITIES.

        (a) P-3B Aircraft.--Of the funds authorized to be appropriated under
    section 301(19) for drug interdiction and counter-drug activities, not
    more than $98,000,000 may be used for the purpose of procuring or
    modifying two P-3B aircraft for use by departments and agencies of the
    United States outside the Department of Defense for drug interdiction
    and counter-drug activities. <<NOTE: Certification.>> However, funds may
    not be obligated for such purpose until the Secretary of Defense submits
    to the congressional defense committees a certification that the
    procurement or modification of such aircraft and the use of such
    aircraft by other departments or agencies of the United States will
    significantly reduce the level of support that would otherwise be
    required of E-3 AWACS aircraft as part of the drug interdiction and
    counter-drug mission of the Department of Defense.

        (b) Nonintrusive Inspection Devices.--Of the funds authorized to be
    appropriated under section 301(19) for drug interdiction and counter-
    drug activities, not more than $10,000,000 may be used to procure three
    nonintrusive inspection devices for use by departments and agencies of
    the United States outside the Department of Defense for drug
    interdiction and counter-drug activities.
        (c) Authority To Transfer Equipment.--The Secretary of Defense may
    transfer to the head of any department or agency of the United States
    outside the Department of Defense any equipment procured or modified
    under this section with funds referred to in this section.
    SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT LAW
                              ENFORCEMENT ACTIVITIES.

        (a) Transfer Authority.--(1) Chapter 153 of title 10, United States
    Code, is amended by inserting after section 2576 the following new
    section:
    ``Sec. 2576a. Excess personal property: sale or donation for law
                          enforcement activities

        ``(a) Transfer Authorized.--(1) Notwithstanding any other provision
    of law and subject to subsection (b), the Secretary of Defense may
    transfer to Federal and State agencies personal property of the
    Department of Defense, including small arms and ammunition, that the
    Secretary determines is--
                ``(A) suitable for use by the agencies in law enforcement
            activities, including counter-drug and counter-terrorism
            activities; and
                ``(B) excess to the needs of the Department of Defense.

        ``(2) The Secretary shall carry out this section in consultation
    with the Attorney General and the Director of National Drug Control
    Policy.
        ``(b) Conditions for Transfer.--The Secretary of Defense may
    transfer personal property under this section only if--
                ``(1) the property is drawn from existing stocks of the
            Department of Defense;
                ``(2) the recipient accepts the property on an as-is, where-
            is basis;
                ``(3) the transfer is made without the expenditure of any
            funds available to the Department of Defense for the procurement
            of defense equipment; and

    [[Page 110 STAT. 2640]]

                ``(4) all costs incurred subsequent to the transfer of the
            property are borne or reimbursed by the recipient.

        ``(c) Consideration.--Subject to subsection (b)(4), the Secretary
    may transfer personal property under this section without charge to the
    recipient agency.
        ``(d) Preference for Certain Transfers.--In considering applications
    for the transfer of personal property under this section, the Secretary
    shall give a preference to those applications indicating that the
    transferred property will be used in the counter-drug or counter-
    terrorism activities of the recipient agency.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2576 the
    following new item:

    ``2576a. Excess personal property: sale or donation for law enforcement
               activities.''.

        (b) Conforming Amendments.--(1) Section 1208 of the National Defense
    Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 10
    U.S.C. 372 note) is repealed.
        (2) Section 1005 of the National Defense Authorization Act for
    Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is
    amended by striking out ``section 1208 of the National Defense
    Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372 note)
    and section 372'' and inserting in lieu thereof ``sections 372 and
    2576a''.
    SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF
                              CHEMICALS USED TO MANUFACTURE CONTROLLED
                              SUBSTANCES.

        (a) DEA Certification.--The Controlled Substances Act is amended by
    inserting after section 519 (21 U.S.C. 889) the following new section:
    ``SEC. 520. REVIEW <<NOTE: 21 USC 890.>> OF FEDERAL SALES OF
                              CHEMICALS USABLE TO MANUFACTURE
                              CONTROLLED SUBSTANCES.

        ``A Federal department or agency may not sell from the stocks of the
    department or agency any chemical which, as determined by the
    Administrator of the Drug Enforcement Administration, could be used in
    the manufacture of a controlled substance unless the Administrator
    certifies in writing to the head of the department or agency that there
    is no reasonable cause to believe that the sale of the chemical would
    result in the illegal manufacture of a controlled substance.''.

        (b) Clerical Amendment.--The table of contents of the Comprehensive
    Drug Abuse Prevention and Control Act of 1970 (84 Stat. 1236) is amended
    by inserting after the item relating to section 519 the following new
    item:

    ``Sec. 520. Review of Federal sales of chemicals usable to manufacture
               controlled substances.''.

                         Subtitle D--Reports and Studies

    SEC. 1041. ANNUAL <<NOTE: 10 USC 113 note.>> REPORT ON OPERATION
                              PROVIDE COMFORT AND OPERATION ENHANCED
                              SOUTHERN WATCH.

        (a) Annual Report.--Not later than March 1 of each year, the
    Secretary of Defense shall submit to Congress a report on Operation
    Provide Comfort and Operation Enhanced Southern Watch.

    [[Page 110 STAT. 2641]]

        (b) Matters Relating to Operation Provide Comfort.--Each report
    under subsection (a) shall include, with respect to Operation Provide
    Comfort, the following:
                (1) A detailed presentation of the projected costs to be
            incurred by the Department of Defense for that operation during
            the fiscal year in which the report is submitted and projected
            for the following fiscal year, together with a discussion of
            missions and functions expected to be performed by the
            Department as part of that operation during each of those fiscal
            years.
                (2) A detailed presentation of the projected costs to be
            incurred by other departments and agencies of the Federal
            Government participating in or providing support to that
            operation during each of those fiscal years.
                (3) A discussion of options being pursued to reduce the
            involvement of the Department of Defense in those aspects of
            that operation that are not directly related to the military
            mission of the Department of Defense.
                (4) A discussion of the exit strategy for United States
            involvement in, and support for, that operation.
                (5) A description of alternative approaches to accomplishing
            the mission of that operation that are designed to limit the
            scope and cost to the Department of Defense of accomplishing
            that mission while maintaining mission success.
                (6) The contributions (both in-kind and actual) by other
            nations to the costs of conducting that operation.
                (7) A detailed presentation of significant Iraqi military
            activity (including specific violations of the no-fly zone)
            determined to jeopardize the security of the Kurdish population
            in northern Iraq.

        (c) Matters Relating to Operation Enhanced Southern Watch.--Each
    report under subsection (a) shall include, with respect to Operation
    Enhanced Southern Watch, the following:
                (1) The expected duration and annual costs of the various
            elements of that operation.
                (2) The political and military objectives associated with
            that operation.
                (3) The contributions (both in-kind and actual) by other
            nations to the costs of conducting that operation.
                (4) A description of alternative approaches to accomplishing
            the mission of that operation that are designed to limit the
            scope and cost of accomplishing that mission while maintaining
            mission success.
                (5) A comprehensive discussion of the political and military
            objectives and initiatives that the Department of Defense has
            pursued, and intends to pursue, in order to reduce United States
            involvement in that operation.
                (6) A detailed presentation of significant Iraqi military
            activity (including specific violations of the no-fly zone)
            determined to jeopardize the security of the Shiite population
            by air attack in southern Iraq or to jeopardize the security of
            Kuwait.

        (d) Termination of Report Requirement.--The requirement under
    subsection (a) shall cease to apply with respect to an operation named
    in that subsection upon the termination of United States involvement in
    that operation.
        (e) Definitions.--For purposes of this section:

    [[Page 110 STAT. 2642]]

                (1) Operation enhanced southern watch.--The term ``Operation
            Enhanced Southern Watch'' means the operation of the Department
            of Defense that as of October 30, 1995, is designated as
            Operation Enhanced Southern Watch.
                (2) Operation provide comfort.--The term ``Operation Provide
            Comfort'' means the operation of the Department of Defense that
            as of October 30, 1995, is designated as Operation Provide
            Comfort.

    SEC. 1042. <<NOTE: 10 USC 113 note.>> ANNUAL REPORT ON EMERGING
                OPERATIONAL CONCEPTS.

        (a) Report Required.--Not later than March 1 of each year through
    2000, the Secretary of Defense shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives a report on emerging operational concepts. Each
    such report shall be prepared by the Secretary in consultation with the
    Chairman of the Joint Chiefs of Staff.
        (b) Matters To Be Included.--Each such report shall contain a
    description, for the year preceding the year in which the report is
    submitted, of the following:
                (1) The process undertaken in the Department of Defense, and
            in each of the Army, Navy, Air Force, and Marine Corps, to
            define and develop doctrine, operational concepts,
            organizational concepts, and acquisition strategies to address--
                        (A) the potential of emerging technologies for
                    significantly improving the operational effectiveness of
                    the Armed Forces;
                        (B) changes in the international order that may
                    necessitate changes in the operational capabilities of
                    the Armed Forces;
                        (C) emerging capabilities of potential adversary
                    states; and
                        (D) changes in defense budget projections.
                (2) The manner in which the processes described in paragraph
            (1) are harmonized to ensure that there is a sufficient
            consideration of the development of joint doctrine, operational
            concepts, and acquisition strategies.
                (3) The manner in which the processes described in paragraph
            (1) are coordinated through the Joint Requirements Oversight
            Council and reflected in the planning, programming, and
            budgeting process of the Department of Defense.
    SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD CARE
                              PROGRAMS.

        (a) Findings.--Congress makes the following findings:
                (1) The Department of Defense should be congratulated on the
            successful implementation of the Military Child Care Act of 1989
            (originally enacted as title XV of Public Law 101-189 and
            subsequently codified as subchapter II of chapter 88 of title
            10, United States Code).
                (2) The actions taken by the Department as a result of that
            Act have dramatically improved the availability, affordability,
            quality, and consistency of the child-care services provided to
            members of the Armed Forces.
                (3) Child care is important to the readiness of members of
            the Armed Forces since single parents and couples in military
            service must have access to affordable child care of good
            quality

    [[Page 110 STAT. 2643]]

            if they are to perform their jobs and respond effectively to
            long work hours or deployments.
                (4) Child care is important to the retention of members of
            the Armed Forces in military service because the dissatisfaction
            of the families of such members with military life is a primary
            reason for the departure of such members from military service.

        (b) Sense of Congress Related to Military-Civilian Child-Care
    Partnership Programs.--It is the sense of Congress that--
                (1) the civilian and military child-care communities,
            Federal, State, and local agencies, and businesses and
            communities involved in the provision of child-care services
            could benefit from the development of partnerships to foster an
            exchange of ideas, information, and materials relating to their
            experiences with the provision of such services and to encourage
            closer relationships between military installations and the
            communities that support them;
                (2) such partnerships would be beneficial to all families by
            helping providers of child-care services exchange ideas about
            innovative ways to address barriers to the effective provision
            of such services; and
                (3) there are many ways that such partnerships could be
            developed, including--
                        (A) cooperation between the directors and curriculum
                    specialists of military child development centers and
                    civilian child development centers in assisting such
                    centers in the accreditation process;
                        (B) use of family support staff to conduct parent
                    and family workshops for new parents and parents with
                    young children in family housing on military
                    installations and in communities in the vicinity of such
                    installations;
                        (C) internships in Department of Defense child-care
                    programs for civilian child-care providers to broaden
                    the base of good-quality child-care services in
                    communities in the vicinity of military installations;
                    and
                        (D) attendance by civilian child-care providers at
                    Department child-care training classes on a space-
                    available basis.

        (c) Report.--Not later than June 30, 1997, the Secretary of Defense
    shall submit to Congress a report on the status of any partnerships and
    other initiatives undertaken by the Department of Defense as described
    in subsection (b), including recommendations for additional ways to
    improve the child-care programs of the Department of Defense and to
    improve such programs so as to benefit civilian child-care providers in
    communities in the vicinity of military installations.
    SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH
                              PROGRAMS.

        (a) Findings.--Congress makes the following findings:
                (1) Programs of the Department of Defense for youth who are
            dependents of members of the Armed Forces have not received the
            same level of attention and resources as have child-care
            programs of the Department since the passage of the Military
            Child Care Act of 1989 (originally enacted as title XV of Public
            Law 101-189 and subsequently codified as subchapter II of
            chapter 88 of title 10, United States Code).

    [[Page 110 STAT. 2644]]

                (2) Older children deserve as much attention to their
            developmental needs as do younger children.
                (3) The Department has started to direct more attention to
            programs for youths who are dependents of members of the Armed
            Forces by providing funds for the implementation of 20 model
            community programs to address the needs of such youths.
                (4) The lessons learned from such programs could apply to
            civilian youth programs as well.

        (b) Sense of Congress Related to Military-Civilian Youth Partnership
    Programs.--It is the sense of Congress that--
                (1) the Department of Defense, Federal, State, and local
            agencies, and businesses and communities involved in conducting
            youth programs could benefit from the development of
            partnerships to foster an exchange of ideas, information, and
            materials relating to such programs and to encourage closer
            relationships between military installations and the communities
            that support them;
                (2) such partnerships could be beneficial to all families by
            helping the providers of services for youths exchange ideas
            about innovative ways to address barriers to the effective
            provision of such services; and
                (3) there are many ways that such partnerships could be
            developed, including--
                        (A) cooperation between the Department and Federal
                    and State educational agencies in exploring the use of
                    public school facilities for child-care programs and
                    youth programs that are mutually beneficial to the
                    Department and civilian communities and complement
                    programs of the Department carried out at its
                    facilities; and
                        (B) improving youth programs that enable adolescents
                    to relate to new peer groups when families of members of
                    the Armed Forces are relocated.

        (c) Report.--Not later than June 30, 1997, the Secretary of Defense
    shall submit to Congress a report on the status of any partnerships and
    other initiatives undertaken by the Department as described in
    subsection (b), including recommendations for additional ways to improve
    the youth programs of the Department of Defense and to improve such
    programs so as to benefit communities in the vicinity of military
    installations.
    SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION
                              AGREEMENTS.

        (a) Quarterly Reports on Coproduction Agreements.--Section 36(a) of
    the Arms Export Control Act (22 U.S.C. 2776(a)) is amended--
                (1) by striking out ``and'' at the end of paragraph (10);
                (2) by striking out the period at the end of paragraph (11)
            and inserting in lieu thereof ``; and''; and
                (3) by inserting after paragraph (11) the following new
            paragraph:
                ``(12) a report on all concluded government-to-government
            agreements regarding foreign coproduction of defense articles of
            United States origin and all other concluded agreements
            involving coproduction or licensed production outside of the
            United States of defense articles of United States origin
            (including coproduction memoranda of understanding or agreement)

    [[Page 110 STAT. 2645]]

            that have not been previously reported under this subsection,
            which shall include--
                        ``(A) the identity of the foreign countries,
                    international organizations, or foreign firms involved;
                        ``(B) a description and the estimated value of the
                    articles authorized to be produced, and an estimate of
                    the quantity of the articles authorized to be produced;
                        ``(C) a description of any restrictions on third-
                    party transfers of the foreign-manufactured articles;
                    and
                        ``(D) if any such agreement does not provide for
                    United States access to and verification of quantities
                    of articles produced overseas and their disposition in
                    the foreign country, a description of alternative
                    measures and controls incorporated in the coproduction
                    or licensing program to ensure compliance with
                    restrictions in the agreement on production quantities
                    and third-party transfers.''.

        (b) Effective <<NOTE: 22 USC 2776 note.>> Date.--Paragraph (12) of
    section 36(a) of the Arms Export Control Act, as added by subsection
    (a)(3), does not apply with respect to an agreement described in such
    paragraph entered into before the date of the enactment of this Act.
    SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR DEPARTMENT
                              OF DEFENSE CRIMINAL INVESTIGATIONS.

        (a) Survey of Military Department Policies and Practices.--The
    Comptroller General of the United States shall conduct a survey of the
    policies and practices of the Naval Criminal Investigative Service with
    respect to the manner in which interviews of suspects and witnesses are
    conducted in connection with criminal investigations of allegations of
    contractor fraud. The purpose of the survey shall be to ascertain
    whether or not investigators and agents of the Naval Criminal
    Investigative Service conduct investigations of contractor fraud in
    accordance with generally accepted Federal law enforcement standards and
    applicable law.
        (b) Report.--Not later than 180 days after the date of the enactment
    of this Act, the Comptroller General shall submit to the Committee on
    National Security of the House of Representatives and the Committee on
    Armed Services of the Senate a report concerning the survey under
    subsection (a). The report shall specifically address the following:
                (1) The extent to which investigators of the Naval Criminal
            Investigative Service investigators and agents of the Naval
            Criminal Investigative Service conduct investigations of
            contractor fraud in accordance with generally accepted Federal
            law enforcement standards and applicable law.
                (2) The extent to which the interview policies established
            by Department of Defense directives or Navy regulations are
            adequate to instruct and guide investigators in the proper
            conduct of subject and witness interviews.
                (3) The desirability and feasibility of providing for video
            and audio recording of interviews and, if recording is
            desirable, the circumstances under which recordings should be
            made.
                (4) The desirability and feasibility of making such
            recordings or written transcriptions of interviews, or both,
            available on demand to the subject or witness interviewed.
                (5) The extent to which existing Department of Defense
            directives and Navy regulations address the carrying and display
            of weapons by agents, together with an assessment of

    [[Page 110 STAT. 2646]]

            whether any change in any such directive or regulation is
            necessary.
                (6) The extent to which existing Department of Defense
            directives and Navy regulations provide guidance to agents to
            ensure that the agents' conduct and demeanor is in accordance
            with generally accepted Federal law enforcement standards and
            applicable law.
                (7) Any recommendation for legislation to ensure that
            investigators and agents of the Naval Criminal Investigative
            Service use legal and proper tactics during interviews in
            connection with criminal investigations of allegations of
            contractor fraud.
    SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED
                              FORCES.

        (a) Report Required.--Not later than January 31, 1997, the Secretary
    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report on the military readiness requirements of the active and reserve
    components of the Armed Forces, including specific combat units, combat
    support units, and combat service support units. Based on the assessment
    scenario described in subsection (c), the report shall assess such
    readiness requirements under a tiered readiness and response system that
    categorizes a given unit of the Armed Forces according to the likelihood
    that the unit will be required to respond to a military conflict and the
    time in which the unit will be required to respond.
        (b) Preparation of Report.--The Chairman of the Joint Chiefs of
    Staff, together with the other members of the Joint Chiefs of Staff
    specified in section 151(a) of title 10, United States Code, shall
    prepare the report required by
    subsection (a). The Chairman of the Joint Chiefs of Staff shall consult
    with the Commander of the Special Operations Command in the preparation
    of the report.

        (c) Assessment Scenario.--The report shall assess readiness
    requirements in a scenario based on the following assumptions:
                (1) The conflict is in a generic theater of operations
            located anywhere in the world and does not exceed the notional
            limits for a major regional conflict.
                (2) The forces available for deployment include the forces
            described in the Bottom-Up Review force structure, including all
            planned force enhancements.
                (3) Assistance is not available from allies.

        (d) Assessment Elements.--The report shall identify by unit type and
    component, and assess the readiness requirements of, all active and
    reserve component units. Each such unit shall be categorized within one
    of the following classifications:
                (1) Forward-deployed and crisis response forces, or ``Tier
            I'' forces, that possess limited internal sustainment capability
            and do not require immediate access to regional air bases or
            ports or overflight rights, including the following:
                        (A) Force units that are routinely deployed forward
                    at sea or on land outside the United States.
                        (B) Combat-ready crises response forces that are
                    capable of mobilizing and deploying within 10 days after
                    receipt of orders.
                        (C) Forces that are supported by prepositioning
                    equipment afloat or are capable of being inserted into a
                    theater

    [[Page 110 STAT. 2647]]

                    upon the capture of a port or airfield by forcible entry
                    forces.
                (2) Combat-ready follow-on forces, or ``Tier II'' forces,
            that can be mobilized and deployed to a theater within
            approximately 60 days after receipt of orders.
                (3) Combat-ready conflict resolution forces, or ``Tier III''
            forces, that can be mobilized and deployed to a theater within
            approximately 180 days after receipt of orders.
                (4) All other active and reserve component force units which
            are not categorized within a classification described in
            paragraph (1), (2), or (3).

        (e) Additional Information Regarding Certain Units.--With regard to
    each unit that is not categorized within a classification described in
    paragraph (1), (2), or (3) of subsection (d), the report shall include--
                (1) a description of the mission and mobilization or
            deployment schedule (or both) of the unit in connection with the
            requirements of the assessment scenario and the combat readiness
            requirements of the Armed Forces; or
                (2) an identification of the unit as excess to the needs of
            the national military strategy and the reasons therefor.

        (f) Form of Report.--The report under this section shall be
    submitted in unclassified form but may contain a classified annex.

    SEC. 1048. <<NOTE: President.>> REPORT ON NATO ENLARGEMENT.

        (a) Report.--Not later than February 1, 1997, the President shall
    transmit to the Committee on Armed Services and the Committee on Foreign
    Relations of the Senate and the Committee on National Security and the
    Committee on International Relations of the House of Representatives a
    report on the enlargement of the North Atlantic Treaty Organization. The
    report shall contain a comprehensive discussion of the following:
                (1) Geopolitical and financial costs and benefits, including
            financial savings, associated with--
                        (A) enlargement of the North Atlantic Treaty
                    Organization;
                        (B) further delays in the process of enlargement of
                    the North Atlantic Treaty Organization; and
                        (C) a failure to enlarge the North Atlantic Treaty
                    Organization.
                (2) Additional North Atlantic Treaty Organization and United
            States military expenditures requested by prospective members of
            the North Atlantic Treaty Organization to facilitate their
            admission into the North Atlantic Treaty Organization.
                (3) Modifications necessary in the military strategy of the
            North Atlantic Treaty Organization and force structure required
            by the inclusion of new members and steps necessary to integrate
            new members, including the role of nuclear and conventional
            capabilities, reinforcement, force deployments, prepositioning
            of equipment, mobility, and headquarter locations.
                (4) The relationship between enlargement of the North
            Atlantic Treaty Organization and transatlantic stability and
            security.
                (5) The state of military preparedness and interoperability
            of Central and Eastern European nations as it relates to the
            responsibilities of membership of the North Atlantic Treaty

    [[Page 110 STAT. 2648]]

            Organization and additional security costs or benefits that may
            accrue to the United States from enlargement of the North
            Atlantic Treaty Organization.
                (6) The state of democracy and free market development as it
            affects the preparedness of Central and Eastern European nations
            for the responsibilities of membership of the North Atlantic
            Treaty Organization, including civilian control of the military,
            the rule of law, human rights, and parliamentary oversight.
                (7) The state of relations between prospective members of
            the North Atlantic Treaty Organization and their neighbors,
            steps taken by prospective members to reduce tensions, and
            mechanisms for the peaceful resolution of border disputes.
                (8) The commitment of prospective members of the North
            Atlantic Treaty Organization to the principles of the North
            Atlantic Treaty and the security of the North Atlantic area.
                (9) The effect of enlargement of the North Atlantic Treaty
            Organization on the political, economic, and security conditions
            of European Partnership for Peace nations not among the first
            new members of the North Atlantic Treaty Organization.
                (10) The relationship between enlargement of the North
            Atlantic Treaty Organization and EU enlargement and the costs
            and benefits of both.
                (11) The relationship between enlargement of the North
            Atlantic Treaty Organization and treaties relevant to United
            States and European security, such as the Conventional Armed
            Forces in Europe Treaty.
                (12) The anticipated impact both of enlargement of the North
            Atlantic Treaty Organization and further delays of enlargement
            on Russian foreign and defense policies and the costs and
            benefits of a security relationship between the North Atlantic
            Treaty Organization and Russia.

        (b) Interpretation.--Nothing in this section shall be interpreted or
    construed to affect the implementation of the NATO Participation Act of
    1994 (title II of Public Law 103-447; 22 U.S.C. 1928 note), or any other
    program or activity which facilitates or assists prospective members of
    the North Atlantic Treaty Organization.

             Subtitle E--Management of Armed Forces Retirement Home

    SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

        (a) Additional Term of Office.--Subsection (e) of section 1515 of
    the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 415) is amended
    by adding at the end the following new paragraph:
        ``(3) The Chairman of the Retirement Home Board may appoint a member
    of the Retirement Home Board for a second consecutive term. The Chairman
    of a Local Board may appoint a member of that Local Board for a second
    consecutive term.''.
        (b) Early Expiration of Term.--(1) Subsection (f) of such section is
    amended to read as follows:
        ``(f) Early Expiration of Term.--A member of the Armed Forces or
    Federal civilian employee who is appointed as a member of the Retirement
    Home Board or a Local Board may serve as a board member only so long as
    the member of the Armed Forces

    [[Page 110 STAT. 2649]]

    or Federal civilian employee is assigned to or serving in the duty
    position that gave rise to the appointment as a board member.''.
        (2) <<NOTE: 24 USC 415 note.>> The amendment made by this subsection
    shall not affect the staggered terms of members of the Armed Forces
    Retirement Home Board or a Local Board of the Retirement Home under
    section 1515(f) of such Act, as such section is in effect before the
    date of the enactment of this Act.

        (c) Annual Evaluation of Directors.--Section 1517 of such Act (24
    U.S.C. 417) is amended by striking out subsection (f) and inserting in
    lieu thereof the following:
        ``(f) Annual Evaluation of Directors.--The Chairman of the
    Retirement Home Board shall annually evaluate the performance of the
    Directors and shall make such recommendations to the
    Secretary of Defense as the Chairman considers appropriate in light of
    the evaluation.''.

    SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES.

        (a) Authority.--Part A of the Armed Forces Retirement Home Act of
    1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et seq.) is amended
    by adding at the end the following new section:
    ``SEC. 1522. AUTHORITY <<NOTE: 24 USC 422.>> TO ACCEPT CERTAIN
                                UNCOMPENSATED
                                SERVICES.

        ``(a) Authority To Accept Services.--Subject to subsection (b) and
    notwithstanding section 1342 of title 31, United States Code, the
    Chairman of the Retirement Home Board or the Director of each
    establishment of the Retirement Home may accept from any person
    voluntary personal services or gratuitous services unless the acceptance
    of the voluntary services is disapproved by the Retirement Home Board.
        ``(b) Requirements and Limitations.--(1) The Chairman of the
    Retirement Home Board or the Director of the establishment accepting the
    services shall notify the person of the scope of the services accepted.
        ``(2) The Chairman or Director shall--
                ``(A) supervise the person providing the services to the
            same extent as that official would supervise a compensated
            employee providing similar services; and
                ``(B) ensure that the person is licensed, privileged, has
            appropriate credentials, or is otherwise qualified under
            applicable laws or regulations to provide such services.

        ``(3) A person providing services accepted under subsection (a) may
    not--
                ``(A) serve in a policymaking position of the Retirement
            Home; or
                ``(B) be compensated for the services by the Retirement
            Home.

        ``(c) Authority To Recruit and Train Persons Providing Services.--
    The Chairman of the Retirement Home Board or the Director of an
    establishment of the Retirement Home may recruit and train persons to
    provide services authorized to be accepted under subsection (a).
        ``(d) Status of Persons Providing Services.--(1) Subject to
    paragraph (3), while providing services accepted under subsection (a) or
    receiving training under subsection (c), a person shall be considered to
    be an employee of the Federal Government only for purposes of the
    following provisions of law:

    [[Page 110 STAT. 2650]]

                ``(A) Subchapter I of chapter 81 of title 5, United States
            Code (relating to compensation for work-related injuries).
                ``(B) Chapter 171 of title 28, United States Code (relating
            to claims for damages or loss).

        ``(2) A person providing services accepted under subsection (a)
    shall be considered to be an employee of the Federal Government under
    paragraph (1) only with respect to services that are within the scope of
    the services accepted.
        ``(3) For purposes of determining the compensation for work-related
    injuries payable under chapter 81 of title 5,
    United States Code (pursuant to this subsection) to a person providing
    services accepted under subsection (a), the monthly pay of the person
    for such services shall be deemed to be the amount determined by
    multiplying--
                ``(A) the average monthly number of hours that the person
            provided the services, by
                ``(B) the minimum wage determined in accordance with section
            6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
            206(a)(1)).

        ``(e) Reimbursement of Incidental Expenses.--The Chairman of the
    Retirement Board or the Director of the establishment accepting services
    under subsection (a) may provide for reimbursement of a person for
    incidental expenses incurred by the person in providing the services
    accepted under subsection (a). The Chairman or Director shall determine
    which expenses qualify for reimbursement under this subsection.''.
        (b) Federal Status of Residents Paid for Part-Time or Intermittent
    Services.--Paragraph (2) of section 1521(b) of the Armed Forces
    Retirement Home Act of 1991 (24 U.S.C. 421(b)) is amended to read as
    follows:
                ``(2) being an employee of the United States for any purpose
            other than--
                        ``(A) subchapter I of chapter 81 of title 5, United
                    States Code (relating to compensation for work-related
                    injuries); and
                        ``(B) chapter 171 of title 28, United States Code
                    (relating to claims for damages or loss).''.
    SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF
                              COLUMBIA.

        (a) Disposal Authorized.--Notwithstanding title II the Federal
    Property and Administrative Services Act of 1949 (40 U.S.C. 481 et
    seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section 501 of
    the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), or
    any other provision of law relating to the management and disposal of
    real property by the United States, the Armed Forces Retirement Home
    Board may convey, by sale or otherwise, all right, title, and interest
    of the United States in a parcel of real property, including
    improvements thereon, consisting of approximately 49 acres located in
    Washington, District of Columbia, east of North Capitol Street, and
    recorded as District Parcel 121/19.
        (b) Manner, Terms, and Conditions of Disposal.--The Armed Forces
    Retirement Home Board may determine--
                (1) the manner for the disposal of the real property under
            subsection (a); and

    [[Page 110 STAT. 2651]]

                (2) the terms and conditions for the conveyance of that
            property, including any terms and conditions that the Board
            considers necessary to protect the interests of the United
            States.

        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Armed Forces
    Retirement Home Board. The cost of the survey shall be borne by the
    party or parties to which the property is to be conveyed.
        (d) Congressional Notification.--(1) Before disposing of real
    property under subsection (a), the Armed Forces Retirement Home Board
    shall notify the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives of the
    proposed disposal. The Board may not dispose of the real property until
    the later of--
                (A) the date that is 60 days after the date on which the
            notification is received by the committees; or
                (B) the date of the next day following the expiration of the
            first period of 30 days of continuous session of Congress that
            follows the date on which the notification is received by the
            committees.

        (2) For the purposes of paragraph (1)--
                (A) continuity of session is broken only by an adjournment
            of Congress sine die; and
                (B) the days on which either House is not in session because
            of an adjournment of more than three days to a day certain are
            excluded in the computation of any period of time in which
            Congress is in continuous session.

                            Subtitle F--Other Matters

    SEC. 1061. POLICY <<NOTE: President.>> ON PROTECTION OF NATIONAL
                              INFORMATION INFRASTRUCTURE AGAINST
                              STRATEGIC ATTACK.

        (a) Report Requirement.--Not later than 180 days after the date of
    the enactment of this Act, the President shall submit to Congress a
    report setting forth a national policy on protecting the national
    information infrastructure against strategic attack.
        (b) Matters To Be Included.--The policy described in the report
    shall include the following:
                (1) Plans to meet essential Government and civilian needs
            during a national security emergency associated with a strategic
            attack on elements of the national information infrastructure
            the functioning of which depend on networked computer
            systems.
                (2) The identification of information infrastructure
            functions that must be performed during such an emergency.
                (3) The assignment of responsibilities to Federal
            departments and agencies, and a description of the roles of
            Government and industry, relating to indications and warning of,
            assessment of, response to, and reconstitution after, potential
            strategic attacks on the elements of the national information
            infrastructure described under paragraph (1).

        (c) Unresolved Issues.--The report shall also identify--
                (1) matters relating to the national policy described in the
            report that, as of the submission of the report, are in need of
            further study and resolution, such as technology and funding
            shortfalls; and

    [[Page 110 STAT. 2652]]

                (2) legal and regulatory considerations relating to the
            national policy.

        (d) Update of Earlier Report.--The report shall include an update of
    the report required to be submitted to
    Congress pursuant to section 1053 of the National Defense Authorization
    Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 440).
    SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

        (a) Allocation.--Of the amounts appropriated for the Department of
    Defense for the Defense Information Infrastructure for each of fiscal
    years 1999 through 2002, the Secretary of Defense shall allocate to the
    information systems security program (program element 0303140K) amounts
    as follows:
                (1) For fiscal year 1999, 2.5 percent.
                (2) For fiscal year 2000, 3.0 percent.
                (3) For fiscal year 2001, 3.5 percent.
                (4) For fiscal year 2002, 4.0 percent.

        (b) Relationship to Other Amounts.--Amounts allocated under
    subsection (a) are in addition to amounts appropriated to the National
    Security Agency and the Defense Advanced Research Projects Agency for
    development of information security systems, acquisition of information
    security systems, and operation of information security systems.
        (c) Report.--Not later than November 15, 1997, the Secretary of
    Defense shall submit to the congressional defense committees and the
    congressional intelligence committees a report on information security
    activities of the Department of Defense. The report shall describe--
                (1) the objectives of the Secretary with respect to
            information security and the strategy of the Secretary
            (including the strategy with respect to funding) during fiscal
            years 1999 through 2002 to achieve those objectives;
                (2) how the Secretary intends to manage and allocate the
            funds required by subsection (a) to be allocated to the
            information systems security program; and
                (3) if the Secretary determines that a funding plan for the
            information systems security program for fiscal years 1999
            through 2002 other than that specified in subsection (a) is
            appropriate, the alternative funding plan proposed by the
            Secretary.

        (d) Defense Information Infrastructure.--For purposes of this
    section, the Defense Information Infrastructure is the web of
    communications networks, computers, software, databases, applications,
    data security services, and other capabilities that meets the
    information processing and transport needs of Department of Defense
    users.
    SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN GOVERNMENTS
                              AND INTERNATIONAL ORGANIZATIONS FOR
                              DEFENSE PURPOSES.

        Section 2608(a) of title 10, United States Code, is amended by
    inserting before the period at the end the following: ``and may accept
    from any foreign government or international organization any
    contribution of services made by such foreign government or
    international organization for use by the Department of Defense''.

    [[Page 110 STAT. 2653]]

    SEC. 1064. PROHIBITION <<NOTE: 15 USC 5621 note.>> ON COLLECTION
                              AND RELEASE OF DETAILED SATELLITE
                              IMAGERY RELATING TO ISRAEL.

        (a) Collection and Dissemination.--A department or agency of the
    United States may issue a license for the collection or dissemination by
    a non-Federal entity of satellite imagery with respect to Israel only if
    such imagery is no more detailed or precise than satellite imagery of
    Israel that is available from commercial sources.
        (b) Declassification and Release.--A department or agency of the
    United States may declassify or otherwise release satellite imagery with
    respect to Israel only if such imagery is no more detailed or precise
    than satellite imagery of Israel that is available from commercial
    sources.

    SEC. 1065. <<NOTE: 10 USC 113 note.>> GEORGE C. MARSHALL EUROPEAN CENTER
                FOR STRATEGIC SECURITY STUDIES.

        (a) Authority To Accept Foreign Gifts and Donations.--(1) The
    Secretary of Defense may, on behalf of the George C. Marshall European
    Center for Strategic Security Studies (in this section referred to as
    the ``Marshall Center''), accept foreign gifts or donations in order to
    defray the costs of, or enhance the operation of, the Marshall Center.
        (2) Funds received by the Secretary under paragraph (1) shall be
    credited to appropriations available for the Department of Defense for
    the Marshall Center. Funds so credited shall be merged with the
    appropriations to which credited and shall be available for the Marshall
    Center for the same purposes and same period as the appropriations with
    which merged.
        (3) <<NOTE: Notification.>> The Secretary of Defense shall notify
    Congress if the total amount of money accepted under paragraph (1)
    exceeds $2,000,000 in any fiscal year. Any such notice shall list each
    of the contributors of such amounts and the amount of each contribution
    in such fiscal year.

        (4) For purposes of this subsection, a foreign gift or donation is a
    gift or donation of funds, materials (including research materials),
    property, or services (including lecture services and faculty services)
    from a foreign government, a foundation or other charitable organization
    in a foreign country, or an individual in a foreign country.
        (b) Marshall Center Participation By Foreign Nations.--(1)
    Notwithstanding any other provision of law, the Secretary of Defense may
    authorize participation by a European or Eurasian nation in Marshall
    Center programs if the Secretary determines, after consultation with the
    Secretary of State, that such participation is in the national interest
    of the United States.
        (2) <<NOTE: Reports.>> Not later than January 31 of each year, the
    Secretary of Defense shall submit to Congress a report setting forth the
    names of the foreign nations permitted to participate in programs of the
    Marshall Center during the preceding year under paragraph (1). Each such
    report shall be prepared by the Secretary with the assistance of the
    Director of the Marshall Center.

        (c) Exemptions for Members of Marshall Center Board of Visitors From
    Certain Requirements.--(1) In the case of any person invited to serve
    without compensation on the Marshall Center Board of Visitors, the
    Secretary of Defense may waive any requirement for financial disclosure
    that
    would otherwise apply to that person solely by reason of service on such
    Board.

    [[Page 110 STAT. 2654]]

        (2) Notwithstanding any other provision of law, a member of the
    Marshall Center Board of Visitors may not be required to register as an
    agent of a foreign government solely by reason of service as a member of
    the Board.
        (3) Notwithstanding section 219 of title 18, United States Code, a
    non-United States citizen may serve on the Marshall Center Board of
    Visitors even though registered as a foreign agent.
    SEC. 1066. AUTHORITY <<NOTE: 31 USC 5111 note.>> TO AWARD TO
                              CIVILIAN PARTICIPANTS IN THE DEFENSE OF
                              PEARL HARBOR THE CONGRESSIONAL MEDAL
                              PREVIOUSLY AUTHORIZED ONLY FOR MILITARY
                              PARTICIPANTS IN THE DEFENSE OF PEARL
                              HARBOR.

        (a) Authority.--The Speaker of the House of Representatives and the
    President pro tempore of the Senate are authorized jointly to present,
    on behalf of Congress, a bronze medal provided for under section 1492 of
    the National Defense Authorization Act for Fiscal Year 1991 (Public Law
    101-510; 104 Stat. 1721) to any person who meets the eligibility
    requirements set forth in subsection (d) of that section other than the
    requirement for membership in the Armed Forces, as certified under
    subsection (e) of that section or under subsection (b) of this section.
        (b) Certification.--The Secretary of Defense shall, not later than
    12 months after the date of the enactment of this Act, certify to the
    Speaker of the House of Representatives and the President pro tempore of
    the Senate the names of persons who are eligible for award of the medal
    under this Act and have not previously been certified under section
    1492(e) of the National Defense Authorization Act for Fiscal Year 1991.
        (c) Applications.--Subsections (d)(2) and (f) of section 1492 of the
    National Defense Authorization Act for Fiscal Year 1991 shall apply in
    the administration of this section.
        (d) Additional Striking Authority.--The Secretary of the Treasury
    shall strike such additional medals as may be necessary for presentation
    under the authority of subsection (a).
        (e) Authorization of Appropriations.--There is authorized to be
    appropriated such sum as may be necessary to carry out this section.
        (f) Retroactive Effective Date.--The authority under subsection (a)
    shall be effective as of November 5, 1990.
    SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES ON
                              MILITARY INSTALLATIONS.

        Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is amended--
                (1) by striking out ``Whoever shall violate'' and inserting
            in lieu thereof ``(a) Except as provided in subsection (b),
            whoever violates'';
                (2) by inserting ``than'' after ``not more''; and
                (3) by adding at the end the following:

        ``(b)(1) Whoever violates any military traffic regulation shall be
    fined an amount not to exceed the amount of the maximum fine for a like
    or similar offense under the criminal or civil law of the State,
    territory, possession, or district where the military installation in
    which the violation occurred is located, or imprisoned for not more than
    30 days, or both.
        ``(2) For purposes of this subsection, the term `military traffic
    regulation' means a rule or regulation for the control of vehicular or
    pedestrian traffic on military installations that is promulgated

    [[Page 110 STAT. 2655]]

    by the Secretary of Defense, or the designee of the Secretary, under the
    authority delegated pursuant to section 2.''.

    SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

        (a) Technical Amendment Regarding Forfeitures During Confinement
    Adjudged by a Court-martial.--(1) Section 858b(a)(1) of title 10, United
    States Code (article 58b(a)(1) of the Uniform Code of Military Justice),
    is amended--
                (A) in the first sentence, by inserting ``(if adjudged by a
            general court-martial)'' after ``all pay and''; and
                (B) in the third sentence, by striking out ``two-thirds of
            all pay and allowances'' and inserting in lieu thereof ``two-
            thirds of all pay''.

        (2) <<NOTE: Effective date. Applicability. 10 USC 858b note.>> The
    amendments made by paragraph (1) shall take effect as of April 1, 1996,
    and shall apply to any case in which a sentence is adjudged by a court-
    martial on or after that date.

        (b)  Excepted Service Appointments to Certain Nonattorney Positions
    of the United States Court of Appeals for the Armed Forces.--(1)
    Subsection (c) of section 943 of title 10, United States Code (article
    143(c) of the Uniform Code of Military Justice) is amended in paragraph
    (1) by inserting after the first sentence the following: ``A position of
    employment under the Court that is provided primarily for the service of
    one judge of the court, reports directly to the judge, and is a position
    of a confidential character is excepted from the competitive service.''.
        (2) The caption for such subsection is amended by striking out
    ``attorney'' and inserting in lieu thereof ``certain''.
        (c) Repeal of 13-Year Special Limit on Term of Transitional Judge of
    United States Court of Appeals for the Armed Forces.--(1) Subsection
    (d)(2) of section 1301 of the National Defense Authorization Act for
    Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1575; 10
    U.S.C. 942 note) is amended by striking out ``to the judges who are
    first appointed to the two new positions of the court created as of
    October 1, 1990--'' and all that follows and inserting in lieu thereof
    ``to the judge who is first appointed to one of the two new positions of
    the court created as of October 1, 1990, as designated by the President
    at the time of appointment, the anniversary referred to in subparagraph
    (A) of that paragraph shall be treated as being the seventh anniversary
    and the number of years referred to in subparagraph (B) of that
    paragraph shall be treated as being seven.''.
        (2) Subsection (e)(1) of such section is amended by striking out
    ``each judge'' and inserting in lieu thereof ``a judge''.

    SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

        (a) In General.--Chapter 110A of title 18, United States Code, is
    amended by inserting after section 2261 the following new section:

    ``Sec. 2261A. Interstate stalking

        ``Whoever travels across a State line or within the special maritime
    and territorial jurisdiction of the United States with the intent to
    injure or harass another person, and in the course of, or as a result
    of, such travel places that person in reasonable fear of the death of,
    or serious bodily injury (as defined in section 1365(g)(3) of this
    title) to, that person or a member of that person's immediate family (as
    defined in section 115 of this title) shall be punished as provided in
    section 2261 of this title.''.

    [[Page 110 STAT. 2656]]

        (b) Conforming Amendments.--Title 18, United States Code, is amended
    as follows:
                (1) Section 2261(b) is amended by inserting ``or section
            2261A'' after ``this section''.
                (2) Sections 2261(b) and 2262(b) are each amended by
            striking ``offender's spouse or intimate partner'' each place it
            appears and inserting ``victim''.
                (3) The chapter heading for chapter 110A is amended by
            inserting ``AND STALKING'' after ``VIOLENCE''.
                (4) The item relating to chapter 110A in the table of
            chapters at the beginning of part I is amended to read as
            follows:

    ``110A.    Domestic violence and stalking........................2261''.

        (c) Clerical Amendment.--The table of sections at the beginning of
    chapter 110A of such title is amended by inserting after the item
    relating to section 2261 the following new item:

    ``2261A. Interstate stalking.''.

    SEC. 1070. PARTICIPATION <<NOTE: 10 USC 113 note.>> OF MEMBERS,
                              DEPENDENTS, AND OTHER PERSONS IN CRIME
                              PREVENTION EFFORTS AT INSTALLATIONS.

        (a) Crime Prevention Plan.--The Secretary of Defense shall prepare
    and implement an incentive-based plan to encourage
    members of the Armed Forces, dependents of members, civilian employees
    of the Department of Defense, and employees of defense contractors
    performing work at military installations to report to an appropriate
    military law enforcement agency any crime or criminal activity that the
    person reasonably believes occurred on a military installation or
    involves a member of the Armed Forces.
        (b) Incentives to Report Criminal Activity.--The Secretary of
    Defense shall include in the plan developed under subsection (a)
    incentives for members and other persons described in such subsection to
    provide information to appropriate military law enforcement agencies
    regarding any crime or criminal activity occurring on a military
    installation or involving a member of the Armed Forces.
        (c) Report Regarding Implementation.--Not later than February 1,
    1997, the Secretary shall submit to Congress a report describing the
    plan being developed under subsection (a).

    SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF THE
                DEPARTMENT OF DEFENSE.

        (a) In General.--Subchapter I of chapter 134 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 2249b. Display of State flags: prohibition on use of funds
                          to arbitrarily exclude flag; position and
                          manner of display

        ``(a) Prohibition on Use of Funds.--Funds available to the
    Department of Defense may not be used to prescribe or enforce any rule
    that arbitrarily excludes the official flag of any State, territory, or
    possession of the United States from any display of the flags of the
    States, territories, and possessions of the United States at an official
    ceremony of the Department of Defense.
        ``(b) Position and Manner of Display.--The display of an official
    flag of a State, territory, or possession of the United States at an
    installation or other facility of the Department shall be

    [[Page 110 STAT. 2657]]

    governed by the provisions of section 3 of the Joint Resolution of June
    22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and any
    modification of such provisions under section 8 of that Joint Resolution
    (36 U.S.C. 178).''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter I of such chapter is amended by adding at the end the following
    new item:

    ``2249b. Display of State flags: prohibition on use of funds to
               arbitrarily exclude flag; position and manner of display.''.

    SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

        (a) Reutilization <<NOTE: Arizona.>> or Sale Before Transfer.--An
    operational support airlift aircraft that is excess to the requirements
    of the United States shall be placed in an inactive status and stored at
    Davis-Monthan Air Force Base, Arizona, only upon the determination of
    the Secretary of Defense that all reasonable efforts for the
    reutilization of the aircraft by, or sale of the aircraft to, Federal
    agencies or other persons have been completed. The Secretary shall
    ensure that attempts to reutilize or sell the entire aircraft are given
    precedence over any reutilization or sale of individual parts or
    components of the aircraft.

        (b) Operational Support Airlift Aircraft Defined.--In this section,
    the term ``operational support airlift aircraft'' has the meaning given
    such term in section 1086(f) of the National Defense Authorization Act
    for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 458).

    SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN DEPARTMENT OF
                DEFENSE ORGANIZATIONS.

        (a) North American Aerospace Defense Command.--Section 162(a) of
    title 10, United States Code, is amended by striking out ``North
    American Air Defense Command'' in paragraphs (1), (2), and (3) and
    inserting in lieu thereof ``North American Aerospace Defense Command''.
        (b) Former Naval Records and History Office and Fund.--(1) Section
    7222 of title 10, United States Code, is amended by striking out
    ``Office of Naval Records and
    History'' each place it appears in subsections (a) and (c) and inserting
    in lieu thereof ``Naval Historical Center''.

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

    ``Sec. 7222. Naval Historical Center Fund''.

        (B) The item relating to such section in the table of sections at
    the beginning of chapter 631 of title 10, United States Code, is amended
    to read as follows:

    ``7222. Naval Historical Center Fund.''.

        (3) Section 2055(g) <<NOTE: 26 USC 2055.>> of the Internal Revenue
    Code of 1986 is amended by striking out paragraph (4) and inserting in
    lieu thereof the following:

                        ``(4) For treatment of gifts and bequests for the
                    benefit of the Naval Historical Center as gifts or
                    bequests to or for the use of the United States, see
                    section 7222 of title 10, United States Code.''.

        (c) Defense Distribution Center, Anniston.--The Corporation for the
    Promotion of Rifle Practice and Firearms Safety Act

    [[Page 110 STAT. 2658]]

    (title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 et seq.)
    is amended by striking out ``Anniston Army Depot'' each place it appears
    in the following provisions and inserting in lieu thereof ``Defense
    Distribution Depot, Anniston'':
                (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).
                (2) Section 1616(b) (36 U.S.C. 5506(b)).
                (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).

        (d) Chemical Demilitarization Citizens Advisory Commissions.--
    Section 172 of the National Defense Authorization Act for Fiscal Year
    1993 (Public Law 102-484; 106 Stat. 2341; 50 U.S.C. 1521 note) is
    amended by striking out ``Assistant Secretary of the Army
    (Installations, Logistics, and Environment)'' in subsections (b) and (f)
    and inserting in lieu thereof ``Assistant Secretary of the Army
    (Research, Development and Acquisition)''.
        (e) Defense Advanced Research Projects Agency.--(1) Each of the
    following provisions of law is amended by inserting ``Defense'' before
    ``Advanced Research Projects Agency'' each place it appears:
                (A) Section 5316 of title 5, United States Code.
                (B) Subsections (b), (f), and (i) of section 2371 of title
            10, United States Code.
                (C) Section 822(c)(1)(D) of Public Law 101-510 (42 U.S.C.
            6686).
                (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371
            note).
                (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431
            note).
                (F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law
            103-160 (10 U.S.C. 2501 note).

        (2) The section headings of each of the following sections are
    amended by inserting ``defense'' before ``advanced'':
                (A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 note).
                (B) Sections 1353 and 1354 of Public Law 103-160 (10 U.S.C.
            2501 note).

        (3) The heading for subsection (a) of section 1354 of Public Law
    103-160 (10 U.S.C. 2501 note) is amended by striking out ``ARPA'' and
    inserting in lieu thereof ``DARPA''.

    SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Miscellaneous Amendments to Title 10, United States Code.--Title
    10, United States Code, is amended as follows:
                (1) Section 129(a) is amended by striking out ``the date of
            the enactment of the National Defense Authorization Act for
            Fiscal Year 1996'' and inserting in lieu thereof ``February 10,
            1996,''.
                (2) Section 401 is amended--
                        (A) in subsection (a)(4), by striking out ``Armed
                    Forces'' both places it appears and inserting in lieu
                    thereof ``armed forces''; and
                        (B) in subsection (e), by inserting ``any of the
                    following'' after ``means''.
                (3) Section 528(b) is amended by striking out ``(1)'' after
            ``(b)'' and inserting ``(1)'' before ``The limitation''.
                (4) Section 1078a(a) is amended by striking out ``Beginning
            on October 1, 1994, the'' and inserting in lieu thereof ``The''.
                (5) Section 1161(b)(2) is amended by striking out ``section
            1178'' and inserting in lieu thereof ``section 1167''.

    [[Page 110 STAT. 2659]]

                (6) Section 1167 is amended by striking out ``person'' and
            inserting in lieu thereof ``member''.
                (7) The table of sections at the beginning of chapter 81 is
            amended by striking out ``Sec.'' in the item relating to section
            1599a.
                (8) Section 1588(d)(1)(C) is amended by striking out
            ``Section 522a'' and inserting in lieu thereof ``Section 552a''.
                (9) Chapter 87 is amended--
                        (A) in section 1723(a), by striking out the second
                    sentence;
                        (B) in section 1724--
                              (i) in subsection (a), by striking out ``small

                          purchase threshold'' and inserting in lieu thereof
                          ``simplified acquisition threshold''; and
                              (ii) in subsections (a) and (b), by striking
                          out ``, beginning on October 1, 1993,'';
                        (C) in section 1733(a), by striking out ``On and
                    after October 1, 1993, a'' and inserting in lieu thereof
                    ``A''; and
                        (D) in section 1734--
                              (i) in subsection (a)(1), by striking out ``,
                          on and after October 1, 1993,''; and
                              (ii) in subsection (b)(1)(A), by striking out
                          ``, on and after October 1, 1991,''.
                (10) Section 2216, as added by section 371 of the National
            Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
            106; 107 Stat. 277), <<NOTE: Ante, p. 277.>> is redesignated as
            section 2216a, and the item relating to that section in the
            table of sections at the beginning of chapter 131 is revised so
            as to reflect such redesignation.
                (11) Section 2305(b)(6) is amended--
                        (A) in subparagraph (B), by striking out ``of this
                    section'' and ``of this paragraph'';
                        (B) in subparagraph (C), by striking out ``this
                    subsection'' and inserting in lieu thereof
                    ``subparagraph (A)''; and
                        (C) in subparagraph (D), by striking out ``pursuant
                    to this subsection'' and inserting in lieu thereof
                    ``under subparagraph (A)''.
                (12) Section 2306a(h)(3) is amended by inserting ``(41
            U.S.C. 403(12))'' before the period at the end.
                (13) Section 2323a(a) is amended by striking out ``section
            1207 of the National Defense Authorization Act for Fiscal Year
            1987 (10 U.S.C. 2301 note)'' and inserting in lieu thereof
            ``section 2323 of this title''.
                (14) Section 2534(c)(4) is amended by striking out ``the
            date occurring two years after the date of the enactment of the
            National Defense Authorization Act for Fiscal Year 1996'' and
            inserting in lieu thereof ``February 10, 1998''.
                (15) The table of sections at the beginning of chapter 155
            is amended by striking out the item relating to section 2609.
                (16) Section 2610(e) is amended by striking out ``two years
            after the date of the enactment of the National Defense
            Authorization Act for Fiscal Year 1996'' and inserting in lieu
            thereof ``on February 10, 1998''.
                (17) Sections 2824(c) and 2826(i)(1) are amended by striking
            out ``the date of the enactment of the National Defense

    [[Page 110 STAT. 2660]]

            Authorization Act for Fiscal Year 1996'' and inserting in lieu
            thereof ``February 10, 1996''.
                (18) Section 3036(d)(3) is amended by striking out ``For
            purposes of this subsection,'' and inserting in lieu thereof
            ``In this subsection,''.
                (19) The table of sections at the beginning of chapter 641
            is amended by striking out the item relating to section 7434.
                (20) Section 7863 is amended by inserting ``were'' in the
            first sentence after ``the stores''.
                (21) Section 10542(b)(21) is amended by striking out ``261''
            and inserting in lieu thereof ``12001''.
                (22) Section 12205(a) is amended by striking out ``After
            September 30, 1995, no person'' and inserting in lieu thereof
            ``No person''.

        (b) Amendments to Public Law 104-106.--The National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    186 et seq.) is amended as follows:
                (1) Section 561(d)(1) (110 Stat. 322) <<NOTE: 10 USC
            1405.>> is amended by inserting ``of such title'' after
            ``Section 1405(c)''.
                (2) Section 1092(b)(2) (110 Stat. 460) is amended by
            striking out the period at the end and inserting in lieu thereof
            ``; and''.
                (3) Section 4301(a)(1) (110 Stat. 656) <<NOTE: 10 USC
            2410b.>> is amended by inserting ``of subsection (a)'' after
            ``in paragraph (2)''.
                (4) Section 5601 (110 Stat. 699) is amended--
                        (A) in subsection (a), <<NOTE: 10 USC 2305.>> by
                    inserting ``of title 10, United States Code,'' before
                    ``is amended''; and
                        (B) in subsection (c), <<NOTE: 10 USC 2315.>> by
                    striking out ``use of equipment or services if,'' in the
                    second quoted matter therein and inserting in lieu
                    thereof ``use of the equipment or services''.
                (5) Section 3403 (110 Stat. 631) is amended by striking out
            ``Act of Fiscal'' and inserting in lieu thereof ``Act for
            Fiscal''.
                (6) Section 4202(c)(1) (110 Stat. 653) <<NOTE: Effective
            date. 41 USC 427.>> is amended, effective as of February 10,
            1996, by striking out ``purchases of' '' in the first quoted
            matter therein and inserting in lieu thereof ``contracts for'
            ''.
                (7) Section 5607(c) (110 Stat. 701) <<NOTE: Effective
            date. 41 USC 253b.>> is amended, effective as of February 10,
            1996--
                        (A) by striking out ``303B(h)'' and by inserting in
                    lieu thereof ``303B(k)''; and
                        (B) by striking out ``253b(h)'' and by inserting in
                    lieu thereof ``253b(k)''.

        (c) Provisions Executed Before Enactment of Public Law 104-106.--
                (1) <<NOTE: Applicability. 10 USC 6975 note.>> Section
            533(b) of the National Defense Authorization Act for Fiscal Year
            1996 (Public Law 104-106; 110 Stat. 315) shall apply as if
            enacted as of December 31, 1995.
                (2) <<NOTE: Effective date. 10 USC 942 note.>> The authority
            provided under section 942(f) of title 10, United States Code,
            shall be effective as if section 1142 of the National Defense
            Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
            Stat. 467) had been enacted on September 29, 1995.

        (d) Amendments to Other Acts.--
                (1) The last section of the Office of Federal Procurement
            Policy Act (41 U.S.C. 434), as added by section 5202 of Public
            Law 104-106 (110 Stat. 690), is redesignated as section 38, and
            the item appearing after section 34 in the table of contents

    [[Page 110 STAT. 2661]]

            in the first section of that Act is transferred to the end of
            such table of contents and revised so as to reflect such
            redesignation.
                (2) Section 1412(g)(2) of the Department of Defense
            Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended--
                        (A) in the matter preceding subparagraph (A), by
                    striking out ``shall contain--'' and inserting in lieu
                    thereof ``shall include the following:'';
                        (B) in subparagraph (A)--
                              (i) by striking out ``a'' before ``site-by-
                          site'' and inserting in lieu thereof ``A''; and
                              (ii) by striking out the semicolon at the end
                          and inserting in lieu thereof a period; and
                        (C) in subparagraphs (B) and (C), by striking out
                    ``an'' at the beginning of the subparagraph and
                    inserting in lieu thereof ``An''.
                (3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 100
            Stat. 3207-91) is amended in clause (v) of subsection (a)(1)(A)
            by striking out ``and (c)'' both places it appears.

        (e) Coordination <<NOTE: Applicability. 10 USC 101 note.>> With
    Other Amendments.--For purposes of applying amendments made by
    provisions of this Act other than provisions of this section, this
    section shall be treated as having been enacted immediately before the
    other provisions of this Act.

        (f) Amendments to the Office of Federal Procurement Policy Act.--The
    Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is
    amended as follows:
                (1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking
            out ``the policies set forth in section 2 or''.
                (2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking
            out the second sentence.
                (3) Section 25 (41 U.S.C. 421) is amended--
                        (A) in subsection (c)--
                              (i) in paragraph (3), by striking out ``the
                          policies set forth in section 2 of this Act or'';
                          and
                              (ii) in paragraph (5), by striking out ``or
                          the policies set forth in section 2 of this Act'';
                          and
                        (B) in subsection (e), by striking out ``the
                    policies of section 2 and''.
    SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED STATES
                              FOR TORTIOUS INFLICTION OF INJURY OR
                              DISEASE ON MEMBERS OF THE UNIFORMED
                              SERVICES.

        (a) Recovery of Pay and Allowances.--The first section of Public Law
    87-693 (42 U.S.C. 2651) is amended--
                (1) in the first sentence of subsection (a)--
                        (A) by inserting ``or pay for'' after ``required by
                    law to furnish''; and
                        (B) by striking out ``or to be furnished'' both
                    places it appears and inserting in lieu thereof ``, to
                    be furnished, paid for, or to be paid for'';
                (2) by redesignating subsections (b) and (c) as subsections
            (d) and (e), respectively;
                (3) by inserting after subsection (a), the following new
            subsections:

        ``(b) If a member of the uniformed services is injured, or contracts
    a disease, under circumstances creating a tort liability upon a third
    person (other than or in addition to the United States

    [[Page 110 STAT. 2662]]

    and except employers of seamen referred to in subsection (a)) for
    damages for such injury or disease and the member is unable to perform
    the member's regular military duties as a result of the injury or
    disease, the United States shall have a right (independent of the rights
    of the member) to recover from the third person or an insurer of the
    third person, or both, the amount equal to the total amount of the pay
    that accrues and is to accrue to the member for the period for which the
    member is unable to perform such duties as a result of the injury or
    disease and is not assigned to perform other military duties.
        ``(c)(1) If, pursuant to the laws of a State that are applicable in
    a case of a member of the uniformed services who is injured or contracts
    a disease as a result of tortious conduct of a third person, there is in
    effect for such a case (as a substitute or alternative for compensation
    for damages through tort liability) a system of compensation or
    reimbursement for expenses of hospital, medical, surgical, or dental
    care and treatment or for lost pay pursuant to a policy of insurance,
    contract, medical or hospital service agreement, or similar arrangement,
    the United States shall be deemed to be a third-party beneficiary of
    such a policy, contract, agreement, or arrangement.
        ``(2) For the purposes of paragraph (1)--
                ``(A) the expenses incurred or to be incurred by the United
            States for care and treatment for an injured or diseased member
            as described in subsection (a) shall be deemed to have been
            incurred by the member;
                ``(B) the cost to the United States of the pay of the member
            as described in subsection (b) shall be deemed to have been pay
            lost by the member as a result of the injury or disease; and
                ``(C) the United States shall be subrogated to any right or
            claim that the injured or diseased member or the member's
            guardian, personal representative, estate, dependents, or
            survivors have under a policy, contract, agreement, or
            arrangement referred to in paragraph (1) to the extent of the
            reasonable value of the care and treatment and the total amount
            of the pay deemed lost under subparagraph (B).'';
                (4) in subsection (d), as redesignated by paragraph (2), by
            inserting ``or paid for'' after ``treatment is furnished''; and
                (5) by adding at the end the following:

        ``(f)(1) Any amount recovered under this section for medical care
    and related services furnished by a military medical treatment facility
    or similar military activity shall be credited to the appropriation or
    appropriations supporting the operation of that facility or activity, as
    determined under regulations prescribed by the Secretary of Defense.
        ``(2) Any amount recovered under this section for the cost to the
    United States of pay of an injured or diseased member of the uniformed
    services shall be credited to the appropriation that supports the
    operation of the command, activity, or other unit to which the member
    was assigned at the time of the injury or illness, as determined under
    regulations prescribed by the Secretary concerned.
        ``(g) For the purposes of this section:
                ``(1) The term `uniformed services' has the meaning given
            such term in section 101 of title 10, United States Code.

    [[Page 110 STAT. 2663]]

                ``(2) The term `tortious conduct' includes any tortious
            omission.
                ``(3) The term `pay', with respect to a member of the
            uniformed services, means basic pay, special pay, and incentive
            pay that the member is authorized to receive under
    title 37, United States Code, or any other law providing pay for service
    in the uniformed services.
                ``(4) The term `Secretary concerned' means--
                        ``(A) the Secretary of Defense, with respect to the
                    Army, the Navy, the Air Force, the Marine Corps, and the
                    Coast Guard (when it is operating as a service in the
                    Navy);
                        ``(B) the Secretary of Transportation, with respect
                    to the Coast Guard when it is not operating as a service
                    in the Navy;
                        ``(C) the Secretary of Health and Human Services,
                    with respect to the commissioned corps of the Public
                    Health Service; and
                        ``(D) the Secretary of Commerce, with respect to the
                    commissioned corps of the National Oceanic and
                    Atmospheric Administration.''.

        (b) Conforming Amendments.--The first section of Public Law 87-693
    (42 U.S.C. 2651) is amended--
                (1) in the first sentence of subsection (a)--
                        (A) by inserting ``(independent of the rights of the
                    injured or diseased person)'' after ``a right to
                    recover''; and
                        (B) by inserting ``, or that person's insurer,''
                    after ``from said third person'';
                (2) in subsection (d), as redesignated by subsection
            (a)(2)--
                        (A) by striking out ``such right,'' and inserting in
                    lieu thereof ``a right under subsections (a), (b), and
                    (c)''; and
                        (B) by inserting ``or the insurance carrier or other
                    entity responsible for the payment or reimbursement of
                    medical expenses or lost pay'' after ``the third person
                    who is liable for the injury or disease'' each place it
                    appears.

        (c) Effective <<NOTE: Applicability. 42 USC 2651 note.>> Date.--The
    authority to collect pursuant to the amendments made by this section
    shall apply to expenses described in the first section of Public Law 87-
    693 (as amended by this section) that are incurred, or are to be
    incurred, by the United States on or after the date of the enactment of
    this Act, whether the event from which the claim arises occurs before,
    on, or after that date.
    SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS
                              PROGRAM.

        (a) Report.--Not later than 120 days after the date of the enactment
    of this Act, the Secretary of the Army shall submit to the Committee on
    Armed Services of the Senate and the Committee on National Security of
    the House of Representatives a report assessing the implementation and
    success of the establishment of site-specific Integrated Product and
    Process Teams as a management tool for the Chemical Stockpile Emergency
    Preparedness Program.
        (b) Contingent <<NOTE: Effective date.>> Mandated Reforms.--If at
    the end of the 120-day period beginning on the date of the enactment of
    this Act the Secretary of the Army and the Director of the Federal
    Emergency Management Agency have been unsuccessful in

    [[Page 110 STAT. 2664]]

    implementing a site-specific Integrated Product and Process Team with
    each of the affected States, the Secretary of the Army shall--
                (1) assume full control and responsibility for the Chemical
            Stockpile Emergency Preparedness Program (eliminating the role
            of the Director of the Federal Emergency Management Agency as
            joint manager of the program);
                (2) establish programmatic agreement with each of the
            affected States regarding program requirements, implementation
            schedules, training and exercise requirements, and funding (to
            include direct grants for program support);
                (3) clearly define the goals of the program; and
                (4) establish fiscal constraints for the program.
    SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO
                              SAVINGS ASSOCIATIONS FOR CERTAIN SAVINGS
                              INSTITUTIONS SERVING MILITARY PERSONNEL.

        Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C.
    1467a(m)(3)(F)) is amended--
                (1) in the subparagraph caption, by striking out
            ``association serving transient'' and inserting in lieu thereof
            ``associations serving certain'';
                (2) by striking out ``company if--'' and all that follows
            through ``90 percent'' and inserting in lieu thereof ``company
            if at least 90 percent''; and
                (3) by striking out ``officers'' both places it appears and
            inserting in lieu thereof ``members''.
    SEC. 1078. IMPROVEMENTS <<NOTE: Fellowships and scholarships.>> TO
                              NATIONAL SECURITY EDUCATION
                              PROGRAM.

        (a) Temporary Requirement Relating to Employment.--Title VII of the
    Department of Defense Appropriations Act, 1996 (Public Law 104-61; 109
    Stat. 650), is amended in the paragraph under the heading ``National
    Security Education Trust Fund'' by striking out the proviso.
        (b) General Program Requirements.--(1) Subparagraph (A) of
    subsection (a)(1) of section 802 of the David L. Boren National Security
    Education Act of 1991 (50 U.S.C. 1902) is amended to read as follows:
                        ``(A) awarding scholarships to undergraduate
                    students who--
                              ``(i) are United States citizens in order to
                          enable such students to study, for at least one
                          academic semester or equivalent term, in foreign
                          countries that are critical countries (as
                          determined under section 803(d)(4)(A)) in those
                          languages and study areas where deficiencies exist
                          (as identified in the assessments undertaken
                          pursuant to section 806(d)); and
                              ``(ii) pursuant to subsection (b)(2)(A), enter
                          into an agreement to work in a national security
                          position or work in the field of higher education
                          in the area of study for which the scholarship was
                          awarded;''; and

        (2) Subparagraph (B) of that subsection is amended--
                (A) in clause (i), by inserting ``relating to the national
            security interests of the United States'' after ``international
            fields''; and
                (B) in clause (ii)--
                        (i) by striking out ``subsection (b)(2)'' and
                    inserting in lieu thereof ``subsection (b)(2)(B)''; and

    [[Page 110 STAT. 2665]]

                        (ii) by striking out ``work for an agency or office
                    of the Federal Government or in'' and inserting in lieu
                    thereof ``work in a national security position or work
                    in''.

        (c) Service Agreement.--(1) Subsection (b) of that section is
    amended in the matter preceding paragraph (1) by striking out ``, or of
    scholarships'' and all that follows through ``12 months or more,'' and
    inserting in lieu thereof ``or any scholarship''.
        (2) Paragraph (2) of that subsection is amended to read as follows:
                ``(2) will--
                        ``(A) not later than eight years after such
                    recipient's completion of the study for which
                    scholarship assistance was provided under the program,
                    and in accordance with regulations issued by the
                    Secretary--
                              ``(i) work in a national security position for
                          a period specified by the Secretary, which period
                          shall be no longer than the period for which
                          scholarship assistance was provided; or
                              ``(ii) if the recipient demonstrates to the
                          Secretary (in accordance with such regulations)
                          that no national security position is available,
                          work in the field of higher education in a
                          discipline relating to the foreign country,
                          foreign language, area study, or international
                          field of study for which the scholarship was
                          awarded, for a period specified by the Secretary,
                          which period shall be determined in accordance
                          with clause (i); or
                        ``(B) upon completion of such recipient's education
                    under the program, and in accordance with such
                    regulations--
                              ``(i) work in a national security position for
                          a period specified by the Secretary, which period
                          shall be not less than one and not more than three
                          times the period for which the fellowship
                          assistance was provided; or
                              ``(ii) if the recipient demonstrates to the
                          Secretary (in accordance with such regulations)
                          that no national security position is available
                          upon the completion of the degree, work in the
                          field of higher education in a discipline relating
                          to the foreign country, foreign language, area
                          study, or international field of study for which
                          the fellowship was awarded, for a period specified
                          by the Secretary, which period shall be
                          established in accordance with clause (i); and''.

        (d) Evaluation of Progress in Language Skills.--Such
    section is further amended--
                (1) by redesignating subsections (c), (d), and (e) as
            subsections (d), (e), and (f), respectively; and
                (2) by inserting after subsection (b) the following new
            subsection (c):

        ``(c) Evaluation of Progress in Language Skills.--The Secretary
    shall, through the National Security Education Program office,
    administer a test of the foreign language skills of each recipient of a
    scholarship or fellowship under this title before the commencement of
    the study or education for which the scholarship or fellowship is
    awarded and after the completion of such study or education. The purpose
    of these tests is to evaluate the progress made by recipients of
    scholarships and fellowships in developing foreign language skills as a
    result of assistance under this title.''.

    [[Page 110 STAT. 2666]]

        (e) Functions of the National Security Education Board.--Section
    803(d) of that Act (50 U.S.C. 1903(d)) is amended--
                (1) in paragraph (1), by inserting ``, including an order of
            priority in such awards that favors individuals expressing an
            interest in national security issues or pursuing a career in a
            national security position'' before the period;
                (2) in paragraph (4)--
                        (A) in the matter preceding subparagraph (A), by
                    striking out ``Make recommendations'' and inserting in
                    lieu thereof ``After taking into account the annual
                    analyses of trends in language, international, and area
                    studies under section 806(b)(1), make recommendations'';
                        (B) in subparagraph (A), by inserting ``and
                    countries which are of importance to the national
                    security interests of the United States'' after ``are
                    studying''; and
                        (C) in subparagraph (B), by inserting ``relating to
                    the national security interests of the United States''
                    after ``section 802(a)(1)(B)'';
                (3) by redesignating paragraph (5) as paragraph (8); and
                (4) by inserting after paragraph (4) the following new
            paragraphs:
                ``(5) Encourage applications for fellowships under this
            title from graduate students having an educational background in
            any academic discipline, particularly in the areas of science or
            technology.
                ``(6) <<NOTE: Records.>> Provide the Secretary biennially
            with a list of scholarship recipients and fellowship recipients,
            including an assessment of their foreign area and language
            skills, who are
            available to work in a national security position.
                ``(7) <<NOTE: Reports.>> Not later than 30 days after a
            scholarship or fellowship recipient completes the study or
            education for which assistance was provided under the program,
            provide the Secretary with a report fully describing the foreign
            area and language skills obtained by the recipient as a result
            of the assistance.''.

        (f) National Security Position Defined.--(1) Section 808 of that Act
    (50 U.S.C. 1908) is amended by adding at the end the following new
    paragraph:
                ``(4) The term `national security position' means a
            position--
                        ``(A) having national security responsibilities in a
                    agency or office of the Federal Government that has
                    national security responsibilities, as determined under
                    section 802(g); and
                        ``(B) in which the individual in such position makes
                    their foreign language skills available to such agency
                    or office.''.

        (2) Section 802 of that Act (50 U.S.C. 1902), as amended by
    subsection (d)(1) of this section, is further amended by adding at the
    end the following new subsection:
        ``(g) Determination <<NOTE: Records.>> of Agencies and Offices of
    the Federal Government Having National Security Responsibilities.--(1)
    The Secretary, in consultation with the Board, shall annually determine
    and develop a list identifying each agency or office of the Federal
    Government having national security responsibilities at which a
    recipient of a fellowship or scholarship under this title will be able
    to make the recipient's foreign area and language skills available to
    such agency or office. The Secretary shall submit the first such list to
    the Congress and include each subsequent

    [[Page 110 STAT. 2667]]

    list in the annual report to the Congress, as required by section
    806(b)(6).

        ``(2) Notwithstanding section 804, funds may not be made available
    from the Fund to carry out this title for fiscal year 1997 until 30 days
    after the date on which the Secretary of Defense submits to the Congress
    the first such list required by paragraph (1).''.
        (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended by
    striking out ``and'' at the end of paragraph (5), redesignating
    paragraph (6) as paragraph (7), and inserting after paragraph (5) the
    following new paragraph (6):
                ``(6) the current list of agencies and offices of the
            Federal Government required to be developed by section 802(g);
            and''.

        (g) Report on Program.--(1) Not later than six months after the date
    of the enactment of this Act, the Secretary of Defense shall submit to
    Congress a report assessing the improvements to the program established
    under the David L. Boren National Security Education Act of 1991 (50
    U.S.C. 1901 et seq.) that result from the amendments made by this
    section.
        (2) The report shall include an assessment of the contribution of
    the program, as so improved, in meeting the national security objectives
    of the United States.

    SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

        (a) Aviation Risk Insurance.--(1) Chapter 931 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 9514. Indemnification of Department of Transportation for
                        losses covered by defense-related aviation
                        insurance

        ``(a) Prompt Indemnification Required.--(1) In the event of a loss
    that is covered by defense-related aviation insurance, the Secretary of
    Defense shall promptly indemnify the Secretary of Transportation for the
    amount of the loss consistent with the indemnification agreement between
    the two Secretaries that underlies such insurance. The Secretary of
    Defense shall make such indemnification--
                ``(A) in the case of a claim for the loss of an aircraft
            hull, not later than 30 days after the date on which the
            Secretary of Transportation determines the claim to be payable
            or that amounts are due under the policy that provided the
            defense-related aviation insurance; and
                ``(B) in the case of any other claim, not later than 180
            days after the date on which the Secretary of Transportation
            determines the claim to be payable.

        ``(2) When there is a loss of an aircraft hull that is (or may be)
    covered by defense-related aviation insurance, the Secretary of
    Transportation may make, during the period when a claim for such loss is
    pending with the Secretary of Transportation, any required periodic
    payments owed by the insured party to a lessor or mortgagee of such
    aircraft. Such payments shall commence not later than 30 days following
    the date of the presentment of the claim for the loss of the aircraft
    hull to the Secretary of Transportation. If the Secretary of
    Transportation determines that the claim is payable, any amount paid
    under this paragraph arising from such claim shall be credited against
    the amount payable under

    [[Page 110 STAT. 2668]]

    the aviation insurance. If the Secretary of Transportation determines
    that the claim is not payable, any amount paid under this paragraph
    arising from such claim shall constitute a debt to the United States,
    payable to the insurance fund. Any such amounts so returned to the
    United States shall be promptly credited to the fund or account from
    which the payments were made under this paragraph.
        ``(b) Source of Funds for Payment of Indemnity.--The Secretary of
    Defense may pay an indemnity described in subsection (a) from any funds
    available to the Department of Defense for operation and maintenance,
    and such sums as may be necessary for payment of such indemnity are
    hereby authorized to be transferred to the Secretary of Transportation
    for such purpose.
        ``(c) Notice to Congress.--In the event of a loss that is covered by
    defense-related aviation insurance in the case of an incident in which
    the covered loss is (or is expected to be) in an amount in excess of
    $1,000,000, the Secretary of Defense shall submit to Congress--
                ``(1) notification of the loss as soon after the occurrence
            of the loss as possible and in no event more than 30 days after
            the date of the loss; and
                ``(2) <<NOTE: Reports.>> semiannual reports thereafter
            updating the information submitted under paragraph (1) and
            showing with respect to losses arising from such incident the
            total amount expended to cover such losses, the source of those
            funds, pending litigation, and estimated total cost to the
            Government.

        ``(d) Implementing Matters.--(1) Payment of indemnification under
    this section is not subject to section 2214 or 2215 of this title or any
    other provision of law requiring notification to Congress before funds
    may be transferred.
        ``(2) Consolidation of claims arising from the same incident is not
    required before indemnification of the Secretary of Transportation for
    payment of a claim may be made under this section.
        ``(e) Construction With Other Transfer Authority.--Authority to
    transfer funds under this section is in addition to any other authority
    provided by law to transfer funds (whether enacted before, on, or after
    the date of the enactment of this section) and is not subject to any
    dollar limitation or notification requirement contained in any other
    such authority to transfer funds.
        ``(f) Annual Report on Contingent Liabilities.--Not later than March
    1 of each year, the Secretary of Defense shall submit to Congress a
    report setting forth the current amount of the contingent outstanding
    liability of the United States under the insurance program under chapter
    443 of title 49.
        ``(g) Definitions.--In this section:
                ``(1) Defense-related aviation insurance.--The term
            `defense-related aviation insurance' means aviation insurance
            and reinsurance provided through policies issued by the
            Secretary of Transportation under chapter 443 of title 49 that
            pursuant to section 44305(b) of that title is provided by that
            Secretary without premium at the request of the Secretary of
            Defense and is covered by an indemnity agreement between the
            Secretary of Transportation and the Secretary of Defense.
                ``(2) Loss.--The term `loss' includes damage to or
            destruction of property, personal injury or death, and other
            liabilities and expenses covered by the defense-related aviation
            insurance.''.

    [[Page 110 STAT. 2669]]

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

    ``9514. Indemnification of Department of Transportation for losses
               covered by
               defense-related aviation insurance.''.

        (b) Vessel War Risk Insurance.--(1) Chapter 157 of title 10, United
    States Code, is amended by adding after section 2644, as redesignated by
    section 906, the following new section:
    ``Sec. 2645. Indemnification of Department of Transportation for
                        losses covered by vessel war risk insurance

        ``(a) Prompt Indemnification Required.--(1) In the event of a loss
    that is covered by vessel war risk insurance, the Secretary of Defense
    shall promptly indemnify the Secretary of Transportation for the amount
    of the loss consistent with the indemnification agreement between the
    two Secretaries that underlies such insurance. The Secretary of Defense
    shall make such indemnification--
                ``(A) in the case of a claim for the loss of a vessel, not
            later than 90 days after the date on which the Secretary of
            Transportation determines the claim to be payable or that
            amounts are due under the policy that provided the vessel war
            risk insurance; and
                ``(B) in the case of any other claim, not later than 180
            days after the date on which on which the Secretary of
            Transportation determines the claim to be payable.

        ``(2) When there is a loss of a vessel that is (or may be) covered
    by vessel war risk insurance, the Secretary of Transportation may make,
    during the period when a claim for such loss is pending with the
    Secretary of Transportation, any required periodic payments owed by the
    insured party to a lessor or mortgagee of such vessel. Such payments
    shall commence not later than 30 days following the date of the
    presentment of the claim for the loss of the vessel to the Secretary of
    Transportation. If the Secretary of Transportation determines that the
    claim is payable, any amount paid under this paragraph arising from such
    claim shall be credited against the amount payable under the vessel war
    risk insurance. If the Secretary of Transportation determines that the
    claim is not payable, any amount paid under this paragraph arising from
    such claim shall constitute a debt to the United States, payable to the
    insurance fund. Any such amounts so returned to the United States shall
    be promptly credited to the fund or account from which the payments were
    made under this paragraph.
        ``(b) Source of Funds for Payment of Indemnity.--The Secretary of
    Defense may pay an indemnity described in subsection (a) from any funds
    available to the Department of Defense for operation and maintenance,
    and such sums as may be necessary for payment of such indemnity are
    hereby authorized to be transferred to the Secretary of Transportation
    for such purpose.
        ``(c) Deposit of Funds.--Any amount transferred to the Secretary of
    Transportation under this section shall be deposited in, and merged with
    amounts in, the Vessel War Risk Insurance Fund as provided in the second
    sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C.
    App. 1288(a)).
        ``(d) Notice to Congress.--In the event of a loss that is covered by
    vessel war risk insurance in the case of an incident in which the
    covered loss is (or is expected to be) in an amount in excess of
    $1,000,000, the Secretary of Defense shall submit to Congress--

    [[Page 110 STAT. 2670]]

                ``(1) notification of the loss as soon after the occurrence
            of the loss as possible and in no event more than 30 days after
            the date of the loss; and
                ``(2) <<NOTE: Reports.>> semiannual reports thereafter
            updating the information submitted under paragraph (1) and
            showing with respect to losses arising from such incident the
            total amount expended to cover such losses, the source of such
            funds, pending litigation, and estimated total cost to the
            Government.

        ``(e) Implementing Matters.--(1) Payment of indemnification under
    this section is not subject to section 2214 or
    2215 of this title or any other provision of law requiring notification
    to Congress before funds may be transferred.

        ``(2) Consolidation of claims arising from the same incident is not
    required before indemnification of the Secretary of Transportation for
    payment of a claim may be made under this section.
        ``(f) Construction With Other Transfer Authority.--Authority to
    transfer funds under this section is in addition to any other authority
    provided by law to transfer funds (whether enacted before, on, or after
    the date of the enactment of this section) and is not subject to any
    dollar limitation or notification requirement contained in any other
    such authority to transfer funds.
        ``(g) Annual Report on Contingent Liabilities.--Not later than March
    1 of each year, the Secretary of Defense shall submit to Congress a
    report setting forth the current amount of the contingent outstanding
    liability of the United States under the vessel war risk insurance
    program under title XII of the Merchant Marine Act, 1936 (46 U.S.C. App.
    1281 et seq.).
        ``(h) Definitions.--In this section:
                ``(1) Vessel war risk insurance.--The term `vessel war risk
            insurance' means insurance and reinsurance provided through
            policies issued by the Secretary of Transportation under title
            XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et
            seq.), that is provided by that Secretary without premium at the
            request of the Secretary of Defense and is covered by an
            indemnity agreement between the Secretary of Transportation and
            the Secretary of Defense.
                ``(2) Vessel war risk insurance fund.--The term `Vessel War
            Risk Insurance Fund' means the insurance fund referred to in the
            first sentence of section 1208(a) of the Merchant Marine Act,
            1936 (46 U.S.C. App. 1288(a)).
                ``(3) Loss.--The term `loss' includes damage to or
            destruction of property, personal injury or death, and other
            liabilities and expenses covered by the vessel war risk
            insurance.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding after the item relating to section 2644, as added by
    section 906, the following new item:

    ``2645. Indemnification of Department of Transportation for losses
               covered by vessel war risk insurance.''.

    SEC. 1080. DESIGNATION <<NOTE: Virginia. 16 USC 431 note.>> OF
                              MEMORIAL AS NATIONAL D-DAY
                              MEMORIAL.

        (a) Designation.--The memorial to be constructed by the National D-
    Day Memorial Foundation in Bedford, Virginia, is hereby designated as a
    national memorial to be known as the ``National D-Day Memorial''. The
    memorial shall serve to honor the members of the Armed Forces of the
    United States who served in the liberation of Normandy, France, in June
    1944.

    [[Page 110 STAT. 2671]]

        (b) Public Proclamation.--The President is requested and urged to
    issue a public proclamation acknowledging the designation of the
    memorial to be constructed by the National D-Day Memorial Foundation in
    Bedford, Virginia, as the National D-Day Memorial.
        (c) Maintenance of Memorial.--All expenses for maintenance and care
    of the memorial shall be paid for with non-Federal funds, including
    funds provided by the National D-Day Memorial Foundation. The United
    States shall not be liable for any expense incurred for the maintenance
    and care of the memorial.
    SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE
                              AGREEMENT BETWEEN UNITED STATES AND
                              JAPAN.

        (a) Findings.--Congress makes the following findings:
                (1) <<NOTE: William J. Clinton. Ryutaro Hashimoto.>> The
            United States and Japan share a long and important bilateral
            relationship which serves as an anchor of peace and stability in
            the Asia Pacific region, an alliance which was reaffirmed at the
            recent summit meeting between President Clinton and Prime
            Minister Hashimoto in Tokyo.
                (2) The Japanese economy has experienced difficulty over the
            past few years, demonstrating that it is no longer possible for
            Japan, the world's second largest economy, to use exports as the
            sole engine of economic growth, but that the Government of Japan
            must promote deregulation of its domestic economy in order to
            increase economic growth.
                (3) Deregulation of the Japanese economy requires
            government attention to the removal of barriers to imports of
            manufactured goods.
                (4) The United States-Japan Semiconductor Trade
            Agreement has begun the process of deregulation in the
            semiconductor sector and is opening the Japanese market to
            competitive foreign products.
                (5) The United States-Japan Semiconductor Trade Agreement
            has put in place both government-to-government and industry-to-
            industry mechanisms which have played a vital role in allowing
            cooperation to replace conflict in this important high
            technology sector.
                (6) The mechanisms include joint calculation of foreign
            market share, deterrence of dumping, and promotion of industrial
            cooperation in the design of foreign semiconductor devices.
                (7) Because of these actions under the United States-Japan
            Semiconductor Trade Agreement, the United States and Japan today
            enjoy trade in semiconductors which is mutually beneficial,
            harmonious, and free from the friction that once characterized
            the semiconductor industry.
                (8) Because of structural barriers in Japan, a gap still
            remains between the share of the world market for semiconductor
            products outside Japan that the United States and other foreign
            semiconductor sources are able to capture through
            competitiveness and the share of the Japanese semiconductor
            market that the United States and those other sources are able
            to capture through competitiveness, and that gap is consistent
            across the full range of semiconductor products as well as a
            full range of end-use applications.
                (9) The competitiveness and health of the United States
            semiconductor industry is of critical importance to the overall

    [[Page 110 STAT. 2672]]

            economic well-being and high-technology defense capabilities of
            the United States.
                (10) The economic interests of both the United States and
            Japan are best served by well functioning, open markets,
            deterrence of dumping, and continuing good cooperative
            relationships in all sectors, including semiconductors.
                (11) A strong and healthy military and political alliance
            between the United States and Japan requires continuation of the
            industrial and economic cooperation promoted by the United
            States-Japan Semiconductor Trade Agreement.
                (12) President Clinton has called on the Government of Japan
            to agree to a continuation of the United States-Japan
            Semiconductor Trade Agreement beyond the current agreement's
            expiration on July 31, 1996.
                (13) The Government of Japan has opposed any
            continuation of the United States-Japan Semiconductor Trade
            Agreement to promote cooperation in United States-Japan
            semiconductor trade.

        (b) Sense of Congress.--On the basis of the findings contained in
    subsection (a), it is the sense of Congress that--
                (1) it is regrettable that the Government of Japan has
            refused to consider continuation of the United States-Japan
            Semiconductor Trade Agreement to ensure that cooperation
            continues in the semiconductor sector beyond the expiration of
            the agreement on July 31, 1996; and
                (2) the President should take all necessary and appropriate
            actions to ensure the resumption and extension of the United
            States-Japan Semiconductor Trade Agreement beyond July 31, 1996.

        (c) Definition.--For purposes of this section, the term ``United
    States-Japan Semiconductor Trade Agreement'' refers to the agreement
    between the United States and Japan concerning trade in semiconductor
    products, with arrangement, done by exchange of letters at Washington on
    June 11, 1991.
    SEC. 1082. AGREEMENTS <<NOTE: 10 USC 168 note.>> FOR EXCHANGE OF
                              DEFENSE PERSONNEL BETWEEN THE UNITED
                              STATES AND FOREIGN COUNTRIES.

        (a) Authority To Enter Into International Exchange Agreements.--(1)
    The Secretary of Defense may enter into international defense personnel
    exchange agreements.
        (2) For purposes of this section, an international defense personnel
    exchange agreement is an agreement with the government of an ally of the
    United States or another friendly foreign country for the exchange of--
                (A) military and civilian personnel of the Department of
            Defense; and
                (B) military and civilian personnel of the defense ministry
            of that foreign government.

        (b) Assignment of Personnel.--(1) Pursuant to an international
    defense personnel exchange agreement, personnel of the defense ministry
    of a foreign government may be assigned to positions in the Department
    of Defense and personnel of the
    Department of Defense may be assigned to positions in the defense
    ministry of such foreign government. Positions to which exchanged
    personnel are assigned may include positions of instructors.

    [[Page 110 STAT. 2673]]

        (2) An agreement for the exchange of personnel engaged in research
    and development activities may provide for assignment of Department of
    Defense personnel to positions in private industry that support the
    defense ministry of the host foreign government.
        (3) An individual may not be assigned to a position pursuant to an
    international defense personnel exchange agreement unless the assignment
    is acceptable to both governments.
        (c) Reciprocity of Personnel Qualifications Required.--Each
    government shall be required under an international defense personnel
    exchange agreement to provide personnel with qualifications, training,
    and skills that are essentially equal to those of the personnel provided
    by the other government.
        (d) Payment of Personnel Costs.--(1) Each government shall pay the
    salary, per diem, cost of living, travel costs, cost of language or
    other training, and other costs for its own personnel in accordance with
    the applicable laws and regulations of such government.
        (2) Paragraph (1) does not apply to the following costs:
                (A) The cost of temporary duty directed by the host
            government.
                (B) The cost of training programs conducted to familiarize,
            orient, or certify exchanged personnel regarding unique aspects
            of the assignments of the exchanged personnel.
                (C) Costs incident to the use of the facilities of the host
            government in the performance of assigned duties.

        (e) Prohibited Conditions.--No personnel exchanged pursuant to an
    agreement under this section may take or be required to take an oath of
    allegiance to the host country or to hold an official capacity in the
    government of such country.
        (f) Relationship to Other Authority.--The requirements in
    subsections (c) and (d) shall apply in the exercise of any authority of
    the Secretaries of the military departments to enter into an agreement
    with the government of a foreign country to provide for the exchange of
    members of the armed forces and military personnel of the foreign
    country. The Secretary of Defense may prescribe regulations for the
    application of such subsections in the exercise of such authority.

    SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

        It is the sense of the Senate that, notwithstanding any other
    provision of law, in order to maximize the amount of equipment provided
    to the Government of Bosnia and Herzegovina under the authority
    contained in section 540 of the Foreign Operations, Export Financing,
    and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110
    Stat. 737), the price of the transferred equipment shall not exceed the
    lowest level at which the same or similar equipment
    has been transferred to any other country under any other United States
    Government program.

    SEC. 1084. <<NOTE: President. 22 USC 1928 note.>> DEFENSE BURDENSHARING.

        (a) Efforts To Increase Allied Burdensharing.--The President shall
    seek to have each nation that has cooperative military relations with
    the United States (including security agreements, basing arrangements,
    or mutual participation in multinational military organizations or
    operations) take one or more of the following actions:
                (1) Increase its financial contributions to the payment of
            the nonpersonnel costs incurred by the United States Government
            for stationing United States military personnel in that

    [[Page 110 STAT. 2674]]

            nation, with a goal of achieving by September 30, 2000, 75
            percent of such costs. An increase in financial contributions by
            any nation under this paragraph may include the elimination of
            taxes, fees, or other charges levied on United States military
            personnel, equipment, or facilities stationed in that nation.
                (2) Increase its annual budgetary outlays for national
            defense as a percentage of its gross domestic product by 10
            percent or at least to a level commensurate to that of the
            United States by September 30, 1997.
                (3) Increase its annual budgetary outlays for foreign
            assistance (to promote democratization, economic stabilization,
            transparency arrangements, defense economic conversion, respect
            for the rule of law, and internationally recognized human
            rights) by 10 percent or at least to a level commensurate to
            that of the United States by September 30, 1997.
                (4) Increase the amount of military assets (including
            personnel, equipment, logistics, support and other resources)
            that it contributes, or would be prepared to contribute, to
            multinational military activities worldwide.

        (b) Authorities To Encourage Actions by United States Allies.--In
    seeking the actions described in subsection (a) with respect to any
    nation, or in response to a failure by any nation to undertake one or
    more of such actions, the President may take any of the following
    measures to the extent otherwise authorized by law:
                (1) Reduce the end strength level of members of the Armed
            Forces assigned to permanent duty ashore in that nation.
                (2) Impose on that nation fees or other charges similar to
            those that such nation imposes on United States forces stationed
            in that nation.
                (3) Reduce (through rescission, impoundment, or other
            appropriate procedures as authorized by law) the amount the
            United States contributes to the NATO Civil Budget, Military
            Budget, or Security Investment Program.
                (4) Suspend, modify, or terminate any bilateral security
            agreement the United States has with that nation, consistent
            with the terms of such agreement.
                (5) Reduce (through rescission, impoundment, or other
            appropriate procedures as authorized by law) any United States
            bilateral assistance appropriated for that nation.
                (6) Take any other action the President determines to be
            appropriate as authorized by law.

        (c) Report on Progress in Increasing Allied Burdensharing.--Not
    later than March 1, 1997, the Secretary of Defense shall submit to
    Congress a report on--
                (1) steps taken by other nations to complete the actions
            described in subsection (a);
                (2) all measures taken by the President, including those
            authorized in subsection (b), to achieve the actions described
            in subsection (a); and
                (3) the budgetary savings to the United States that are
            expected to accrue as a result of the steps described under
            paragraph (1).

        (d) Report on National Security Bases for Forward Deployment and
    Burdensharing Relationships.--(1) In order to ensure the best allocation
    of budgetary resources, the President shall undertake a review of the
    status of elements of the United

    [[Page 110 STAT. 2675]]

    States Armed Forces that are permanently stationed outside the United
    States. The review shall include an assessment of the following:
                (A) The alliance requirements that are to be found in
            agreements between the United States and other countries.
                (B) The national security interests that support permanently
            stationing elements of the United States Armed Forces outside
            the United States.
                (C) The stationing costs associated with the forward
            deployment of elements of the United States Armed Forces.
                (D) The alternatives available to forward deployment (such
            as material prepositioning, enhanced airlift and sealift, or
            joint training operations) to meet such alliance requirements or
            national security interests, with such alternatives identified
            and described in detail.
                (E) The costs and force structure configurations associated
            with such alternatives to forward deployment.
                (F) The financial contributions that allies of the United
            States make to common defense efforts (to promote
            democratization, economic stabilization, transparency
            arrangements, defense economic conversion, respect for the rule
            of law, and internationally recognized human rights).
                (G) The contributions that allies of the United States make
            to meeting the stationing costs associated with the forward
            deployment of elements of the United States Armed Forces.
                (H) The annual expenditures of the United States and its
            allies on national defense, and the relative percentages of each
            nation's gross domestic product constituted by those
            expenditures.

        (2) The President shall submit to Congress a report on the review
    under paragraph (1). The report shall be submitted not later than March
    1, 1997, in classified and unclassified form.
        (e) Report Date.--Section 1003(c) of Public Law 98-515 is amended by
    striking out ``each year'' and inserting ``by March 1, 1998, and every
    other year thereafter''.

     TITLE XI--NATIONAL <<NOTE: National Imagery and Mapping Agency Act of
    1996.>> IMAGERY AND MAPPING AGENCY

    Sec. 1101. Short title.
    Sec. 1102. Findings.
    Sec. 1103. Role of Director of Central Intelligence in appointment and
               evaluation of certain intelligence officials.

                       Subtitle A--Establishment of Agency

    Sec. 1111. Establishment.
    Sec. 1112. Missions and authority.
    Sec. 1113. Transfers of personnel and assets.
    Sec. 1114. Compatibility with authority under the National Security Act
               of 1947.
    Sec. 1115. Creditable civilian service for career conditional employees
               of the
               Defense Mapping Agency.
    Sec. 1116. Saving provisions.
    Sec. 1117. Definitions.
    Sec. 1118. Authorization of appropriations.

              Subtitle B--Conforming Amendments and Effective Dates

    Sec. 1121. Redesignation and repeals.
    Sec. 1122. Reference amendments.
    Sec. 1123. Headings and clerical amendments.
    Sec. 1124. Effective date.

    [[Page 110 STAT. 2676]]

    SEC. 1101. <<NOTE: 10 USC 441 note.>> SHORT TITLE.

        This title may be cited as the ``National Imagery and Mapping Agency
    Act of 1996''.

    SEC. 1102. <<NOTE: 10 USC 441 note.>> FINDINGS.

        Congress makes the following findings:
                (1) There is a need within the Department of Defense and the
            Intelligence Community of the United States to provide a single
            agency focus for the growing number and diverse types of
            customers for imagery and geospatial information resources
            within the Government, to ensure visibility and accountability
            for those resources, and to harness, leverage, and focus rapid
            technological developments to serve the imagery, imagery
            intelligence, and geospatial information customers.
                (2) There is a need for a single Government agency to
            solicit and advocate the needs of that growing and diverse pool
            of customers.
                (3) A single combat support agency dedicated to imagery,
            imagery intelligence, and geospatial information could act as a
            focal point for support of all imagery intelligence and
            geospatial information customers, including customers in the
            Department of Defense, the Intelligence Community, and related
            agencies outside of the Department of Defense.
                (4) Such an agency would best serve the needs of the
            imagery, imagery intelligence, and geospatial information
            customers if it were organized--
                        (A) to carry out its mission responsibilities under
                    the authority, direction, and control of the Secretary
                    of Defense, with the advice of the Chairman of the Joint
                    Chiefs of Staff; and
                        (B) to carry out its responsibilities to national
                    intelligence customers in accordance with policies and
                    priorities established by the Director of Central
                    Intelligence.

    SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND
                EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

        (a) In General.--Section 201 of title 10, United States Code, is
    amended to read as follows:
    ``Sec. 201. Certain intelligence officials: consultation and
                      concurrence regarding appointments; evaluation
                      of performance

        ``(a) Consultation Regarding Appointment.--Before submitting a
    recommendation to the President regarding the appointment of an
    individual to the position of Director of the Defense Intelligence
    Agency, the Secretary of Defense shall consult with the Director of
    Central Intelligence regarding the recommendation.
        ``(b) Concurrence in Appointment.--(1) Before submitting a
    recommendation to the President regarding the appointment of an
    individual to a position referred to in paragraph (2), the Secretary of
    Defense shall seek the concurrence of the Director of Central
    Intelligence in the recommendation. If the Director does not concur in
    the recommendation, the Secretary may make the recommendation to the
    President without the Director's concur

    [[Page 110 STAT. 2677]]

    rence, but shall include in the recommendation a statement that the
    Director does not concur in the recommendation.
        ``(2) Paragraph (1) applies to the following positions:
                ``(A) The Director of the National Security Agency.
                ``(B) The Director of the National Reconnaissance Office.
                ``(C) The Director of the National Imagery and Mapping
            Agency.

        ``(c) Performance Evaluations.--(1) The Director of Central
    Intelligence shall provide annually to the Secretary of Defense, for the
    Secretary's consideration, an evaluation of the performance of the
    individuals holding the positions referred to in paragraph (2) in
    fulfilling their respective responsibilities with regard to the National
    Foreign Intelligence Program.
        ``(2) The positions referred to in paragraph (1) are the following:
                ``(A) The Director of the National Security Agency.
                ``(B) The Director of the National Reconnaissance Office.
                ``(C) The Director of the National Imagery and Mapping
            Agency.''.

        (b) Clerical Amendment.--The item relating to section 201 in the
    table of sections at the beginning of subchapter II of chapter 8 of such
    title is amended to read as follows:

    ``201. Certain intelligence officials: consultation and concurrence
               regarding appointments; evaluation of performance.''.

                       Subtitle A--Establishment of Agency

    SEC. 1111. <<NOTE: 10 USC 441 note.>> ESTABLISHMENT.

        (a) Establishment.--There is hereby established in the Department of
    Defense a Defense Agency to be known as the National Imagery and Mapping
    Agency.
        (b) Transfer of Functions From Department of Defense Entities.--The
    missions and functions of the following elements of the Department of
    Defense are transferred to the National Imagery and Mapping Agency:
                (1) The Defense Mapping Agency.
                (2) The Central Imagery Office.
                (3) Other elements of the Department of Defense as specified
            in the classified annex to this Act.

        (c) Transfer of Functions From Central Intelligence Agency.--The
    missions and functions of the following elements of the Central
    Intelligence Agency are transferred to the National Imagery and Mapping
    Agency:
                (1) The National Photographic Interpretation Center.
                (2) Other elements of the Central Intelligence Agency as
            specified in the classified annex to this Act.

        (d) Preservation of Level and Quality of Imagery Intelligence
    Support to All-Source Analysis and Production.--In managing the
    establishment of the National Imagery and Mapping Agency, the Secretary
    of Defense, in consultation with the Director of Central Intelligence,
    shall ensure that imagery intelligence support provided to all-source
    analysis and production is in no way degraded or compromised.

    SEC. 1112. MISSIONS AND AUTHORITY.

        (a) Agency Charter.--Part I of subtitle A of title 10, United States
    Code, is amended--

    [[Page 110 STAT. 2678]]

                (1) by redesignating chapter 22 as chapter 23; and
                (2) by inserting after chapter 21 the following new
            chapter 22:

                ``CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

    ``Subchapter                                                        Sec.
    ``I. Missions and Authority.......................................   441
    ``II. Maps, Charts, and Geodetic Products.........................   451
    ``III. Personnel Management.......................................   461
    ``IV. Definitions.................................................   467

                     ``SUBCHAPTER I--MISSIONS AND AUTHORITY

    ``Sec.
    ``441. Establishment.
    ``442. Missions.
    ``443. Imagery intelligence and geospatial information: support for
               foreign countries.
    ``444. Support from Central Intelligence Agency.
    ``445. Protection of agency identifications and organizational
               information.

    ``Sec. 441. Establishment

        ``(a) Establishment.--The National Imagery and Mapping Agency is a
    combat support agency of the Department of Defense and has significant
    national missions.
        ``(b) Director.--(1) The Director of the National Imagery and
    Mapping Agency is the head of the agency.
        ``(2) Upon a vacancy in the position of Director, the Secretary of
    Defense shall recommend to the President an individual for appointment
    to the position.
        ``(3) If an officer of the armed forces on active duty is appointed
    to the position of Director, the position shall be treated as having
    been designated by the President as a position of importance and
    responsibility for purposes of section 601 of this title and shall carry
    the grade of lieutenant general, or, in the case of an officer of the
    Navy, vice admiral.
        ``(c) Director of Central Intelligence Collection Tasking
    Authority.--Unless otherwise directed by the President, the Director of
    Central Intelligence shall have authority (except as otherwise agreed by
    the Director and the Secretary of Defense) to--
                ``(1) approve collection requirements levied on national
            imagery collection assets;
                ``(2) determine priorities for such requirements; and
                ``(3) resolve conflicts in such priorities.

        ``(d) Availability and Continued Improvement of Imagery Intelligence
    Support to All-Source Analysis and Production Function.--The Secretary
    of Defense, in consultation with the Director of Central Intelligence,
    shall take all necessary steps to ensure the full availability and
    continued improvement of imagery intelligence support for all-source
    analysis and production.

    ``Sec. 442. Missions

        ``(a) National Security Missions.--(1) The National Imagery and
    Mapping Agency shall, in support of the national security objectives of
    the United States, provide the following:
                ``(A) Imagery.
                ``(B) Imagery intelligence.
                ``(C) Geospatial information.

    [[Page 110 STAT. 2679]]

        ``(2) Imagery, intelligence, and information provided in carrying
    out paragraph (1) shall be timely, relevant, and accurate.
        ``(b) Navigation Information.--The National Imagery and Mapping
    Agency shall improve means of navigating vessels of the Navy and the
    merchant marine by providing, under the authority of the Secretary of
    Defense, accurate and inexpensive nautical charts, sailing directions,
    books on navigation, and manuals of instructions for the use of all
    vessels of the United States and of navigators generally.
        ``(c) Maps, Charts, Etc.--The National Imagery and Mapping Agency
    shall prepare and distribute maps, charts, books, and geodetic products
    as authorized under subchapter II of this chapter.

        ``(d) National Missions.--The National Imagery and Mapping Agency
    also has national missions as specified in section 120(a) of the
    National Security Act of 1947.
        ``(e) Systems.--The National Imagery and Mapping Agency may, in
    furtherance of a mission of the Agency, design, develop, deploy,
    operate, and maintain systems related to the processing and
    dissemination of imagery intelligence and geospatial information that
    may be transferred to, accepted or used by, or used on behalf of--
                ``(1) the armed forces, including any combatant command,
            component of a combatant command, joint task force, or tactical
            unit; or
                ``(2) any other department or agency of the United States.
    ``Sec. 443. Imagery intelligence and geospatial information:
                      support for foreign countries

        ``(a) Use of Appropriated Funds.--The Director of the National
    Imagery and Mapping Agency may use appropriated funds available to the
    National Imagery and Mapping Agency to provide foreign countries with
    imagery intelligence and geospatial information support.

        ``(b) Use of Funds Other Than Appropriated Funds.--The Director may
    use funds other than appropriated funds to provide foreign countries
    with imagery intelligence and geospatial information support,
    notwithstanding provisions of law relating to the expenditure of funds
    of the United States, except that--
                ``(1) no such funds may be expended, in whole or in part, by
            or for the benefit of the National Imagery and Mapping Agency
            for a purpose for which Congress had previously denied funds.
                ``(2) proceeds from the sale of imagery intelligence or
            geospatial information items may be used only to purchase
            replacement items similar to the items that are sold; and
                ``(3) the authority provided by this subsection may not be
            used to acquire items or services for the principal benefit of
            the United States.

        ``(c) Accommodation Procurements.--The authority under this section
    may be exercised to conduct accommodation procurements on behalf of
    foreign countries.
        ``(d) Coordination With Director of Central Intelligence.--The
    Director of the Agency shall coordinate with the Director of Central
    Intelligence any action under this section that involves imagery
    intelligence or intelligence products or involves providing support to
    an intelligence or security service of a foreign country.

    [[Page 110 STAT. 2680]]

    ``Sec. 444. Support from Central Intelligence Agency

        ``(a) Support Authorized.--The Director of Central Intelligence may
    provide support in accordance with this section to the Director of the
    National Imagery and Mapping Agency. The Director of the National
    Imagery and Mapping Agency may accept support provided under this
    section.
        ``(b) Administrative and Contract Services.--(1) In furtherance of
    the national intelligence effort, the Director of Central Intelligence
    may provide administrative and contract services to the National Imagery
    and Mapping Agency as if that agency were an organizational element of
    the Central Intelligence Agency.
        ``(2) Services provided under paragraph (1) may include the services
    of security police. For purposes of section 15 of the Central
    Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation of the
    National Imagery and Mapping Agency that is provided security police
    services under this section shall be considered an installation of the
    Central Intelligence Agency.
        ``(3) Support provided under this subsection shall be provided under
    terms and conditions agreed upon by the Secretary of Defense and the
    Director of Central Intelligence.
        ``(c) Detail of Personnel.--The Director of Central Intelligence may
    detail personnel of the Central Intelligence Agency indefinitely to the
    National Imagery and Mapping Agency without regard to any limitation on
    the duration of interagency details of Federal Government personnel.
        ``(d) Reimbursable or Nonreimbursable Support.--Support under this
    section may be provided and accepted on either a reimbursable basis or a
    nonreimbursable basis.
        ``(e) Authority To Transfer Funds.--(1) The Director of the National
    Imagery and Mapping Agency may transfer funds available for that agency
    to the Director of Central Intelligence for the Central Intelligence
    Agency.
        ``(2) The Director of Central Intelligence--
                ``(A) may accept funds transferred under paragraph
            (1); and
                ``(B) shall expend such funds, in accordance with the
            Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et
            seq.), to provide administrative and contract services or detail
            personnel to the National Imagery and Mapping Agency under this
            section.
    ``Sec. 445. Protection of agency identifications and
                      organizational information

        ``(a) Unauthorized Use of Agency Name, Initials, or Seal.--(1)
    Except with the written permission of the Secretary of Defense, no
    person may knowingly use, in connection with any merchandise, retail
    product, impersonation, solicitation, or commercial activity in a manner
    reasonably calculated
    to convey the impression that such use is approved, endorsed, or
    authorized by the Secretary of Defense, any of the following:
                ``(A) The words `National Imagery and Mapping Agency', the
            initials `NIMA', or the seal of the National Imagery and Mapping
            Agency.
                ``(B) The words `Defense Mapping Agency', the initials
            `DMA', or the seal of the Defense Mapping Agency.
                ``(C) Any colorable imitation of such words, initials, or
            seals.

    [[Page 110 STAT. 2681]]

        ``(2) Whenever it appears to the Attorney General that any person is
    engaged or about to engage in an act or practice which constitutes or
    will constitute conduct prohibited by paragraph (1), the Attorney
    General may initiate a civil proceeding in a district court of the
    United States to enjoin such act or practice. Such court shall proceed
    as soon as practicable to a hearing and determination of such action and
    may, at any time before such final determination, enter such restraining
    orders or prohibitions, or take such other action as is warranted, to
    prevent injury to the United States or to any person or class of persons
    for whose protection the action is brought.

              ``SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

    ``Sec.
    ``451. Maps, charts, and books.
    ``452. Pilot charts.
    ``453. Prices of maps, charts, and navigational publications.
    ``454. Exchange of mapping, charting, and geodetic data with foreign
               countries and international organizations.
    ``455. Maps, charts, and geodetic data: public availability; exceptions.
    ``456. Civil actions barred.

                     ``SUBCHAPTER III--PERSONNEL MANAGEMENT

    ``Sec.
    ``461. Management rights.

    ``Sec. 461. Management rights

        ``(a) Scope.--If there is no obligation under the provisions of
    chapter 71 of title 5 for the head of an agency of the United States to
    consult or negotiate with a labor organization on a particular matter by
    reason of that matter being covered by a provision of law or a
    Governmentwide regulation, the Director of the National Imagery and
    Mapping Agency is not obligated to consult or negotiate with a labor
    organization on that matter even if that provision of law or regulation
    is inapplicable to the National Imagery and Mapping Agency.
        ``(b) Bargaining Units.--The National Imagery and Mapping Agency
    shall accord exclusive recognition to a labor organization under section
    7111 of title 5 only for a bargaining unit that was recognized as
    appropriate for the Defense Mapping Agency on the day before the date on
    which employees and positions of the Defense Mapping Agency in that
    bargaining unit became employees and positions of the National Imagery
    and Mapping Agency under the National Imagery and Mapping Agency Act of
    1996 (title XI of the National Defense Authorization Act for Fiscal Year
    1997).
        ``(c) Termination of Bargaining Unit Coverage of Position Modified
    To Affect National Security Directly.--(1) If the Director of the
    National Imagery and Mapping Agency determines that the responsibilities
    of a position within a collective bargaining unit should be modified to
    include intelligence, counterintelligence, investigative, or security
    duties not previously assigned to that position and that the performance
    of the newly assigned duties directly affects the national security of
    the United States, then, upon such a modification of the
    responsibilities of that position, the position shall cease to be
    covered by the collective bargaining unit and the employee in that
    position shall cease to be entitled

    [[Page 110 STAT. 2682]]

    to representation by a labor organization accorded exclusive recognition
    for that collective bargaining unit.
        ``(2) A determination described in paragraph (1) that is made by the
    Director of the National Imagery and Mapping Agency may not be reviewed
    by the Federal Labor Relations Authority or any court of the United
    States.

                          ``SUBCHAPTER IV--DEFINITIONS

    ``Sec.
    ``467. Definitions.

    ``Sec. 467. Definitions

        ``In this chapter:
                ``(1) The term `function' means any duty, obligation,
            responsibility, privilege, activity, or program.
                ``(2)(A) The term `imagery' means, except as provided in
            subparagraph (B), a likeness or presentation of any natural or
            manmade feature or related object or activity and the positional
            data acquired at the same time the likeness or representation
            was acquired, including--
                        ``(i) products produced by space-based national
                    intelligence reconnaissance systems; and
                        ``(ii) likenesses or presentations produced by
                    satellites, airborne platforms, unmanned aerial
                    vehicles, or other similar means.
                ``(B) Such term does not include handheld or clandestine
            photography taken by or on behalf of human intelligence
            collection organizations.
                ``(3) The term `imagery intelligence' means the technical,
            geographic, and intelligence information derived through the
            interpretation or analysis of imagery and collateral materials.
                ``(4) The term `geospatial information' means information
            that identifies the geographic location and characteristics of
            natural or constructed features and boundaries on the earth and
            includes--
                        ``(A) statistical data and information derived from,
                    among other things, remote sensing, mapping, and
                    surveying technologies;
                        ``(B) mapping, charting, and geodetic data; and
                        ``(C) geodetic products, as defined in section
                    455(c) of this title.''.

        (b) Transfer of Defense Mapping Agency Provisions.--(1) Sections
    2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United States Code,
    are transferred to subchapter II of chapter 22
    of such title, as added by subsection (a), inserted in that sequence in
    such subchapter following the table of sections, and redesignated in
    accordance with the following table:

    Section                                                       Section as
    transferred                                                 redesignated
        2792..........................................................  451
        2793..........................................................  452
        2794..........................................................  453
        2795..........................................................  454
        2796..........................................................  455
        2798..........................................................  456.

        (2) Sections 451(1), 452, 453, 454, and 455 (in subsections (a) and
    (b)(1)(C)), and 456 of title 10, United States Code, as

    [[Page 110 STAT. 2683]]

    transferred and redesignated by paragraph (1), are amended by striking
    out ``Defense Mapping Agency'' each place it appears and inserting in
    lieu thereof ``National Imagery and Mapping Agency''.
        (c) Oversight of Agency as a Combat Support Agency.--Section 193 of
    title 10, United States Code, is amended--
                (1) in subsection (d)--
                        (A) by striking out the caption and inserting in
                    lieu thereof ``Review of National Security Agency and
                    National Imagery and Mapping Agency.--'';
                        (B) in paragraph (1)--
                              (i) by inserting ``and the National Imagery
                          and Mapping Agency'' after ``the National Security
                          Agency''; and
                              (ii) by striking out ``the Agency'' and
                          inserting in lieu thereof ``that the agencies'';
                          and
                        (C) in paragraph (2), by inserting ``and the
                    National Imagery and Mapping Agency'' after ``the
                    National Security Agency'';
                (2) in subsection (e)--
                        (A) by striking out ``DIA and NSA'' in the caption
                    and inserting in lieu thereof the following: ``DIA, NSA,
                    and NIMA''; and
                        (B) by striking out ``and the National Security
                    Agency'' and inserting in lieu thereof ``, the National
                    Security Agency, and the National Imagery and Mapping
                    Agency''; and
                (3) in subsection (f), by striking out paragraph (4) and
            inserting in lieu thereof the following:
                ``(4) The National Imagery and Mapping Agency.''.

        (d) Consolidation and Standardization of Exemptions From Disclosure
    of Organizational and Personnel Information.--Chapter 21 of title 10,
    United States Code, is amended by striking out sections 424 and 425 and
    inserting in lieu thereof the following:
    ``Sec. 424. Disclosure of organizational and personnel
                      information: exemption for Defense Intelligence
                      Agency, National Reconnaissance Office, and
                      National Imagery and Mapping Agency

        ``(a) Exemption From Disclosure.--Except as required by the
    President or as provided in subsection (c), no provision of law shall be
    construed to require the disclosure of--
                ``(1) the organization or any function of an organization of
            the Department of Defense named in subsection (b); or
                ``(2) the number of persons employed by or assigned or
            detailed to any such organization or the name, official title,
            occupational series, grade, or salary of any such person.

        ``(b) Covered Organizations.--This section applies to the following
    organizations of the Department of Defense:
                ``(1) The Defense Intelligence Agency.
                ``(2) The National Reconnaissance Office.
                ``(3) The National Imagery and Mapping Agency.

        ``(c) Provision of Information to Congress.--Subsection (a) does not
    apply with respect to the provision of information to Congress.''.
        (e) Special Printing Authority for Agency.--(1) Section 207(a)(2)(B)
    of the Legislative Branch Appropriations Act, 1993

    [[Page 110 STAT. 2684]]

    (Public Law 102-392; 44 U.S.C. 501 note), is amended by inserting
    ``National Imagery and Mapping Agency,'' after ``Defense Intelligence
    Agency,''.

        (2) Section 1336 of title 44, United States Code, is amended--
                (A) by striking out ``Secretary of the Navy'' and inserting
            in lieu thereof ``Director of the National Imagery and Mapping
            Agency''; and
                (B) by striking out ``United States Naval Oceanographic
            Office'' and inserting in lieu thereof ``National Imagery and
            Mapping Agency''.

    SEC. 1113. <<NOTE: 10 USC 441 note.>> TRANSFERS OF PERSONNEL AND ASSETS.

        (a) Personnel and Assets.--Subject to subsections (b) and (c), the
    personnel, assets, unobligated balances of appropriations and
    authorizations of appropriations, and, to the extent jointly determined
    appropriate by the Secretary of Defense and Director of Central
    Intelligence, obligated balances of appropriations and authorizations of
    appropriations employed, used, held, arising from, or available in
    connection with the missions and functions transferred under section
    1111(b) or section 1111(c) are transferred to the National Imagery and
    Mapping Agency. Transfers of appropriations from the Central
    Intelligence Agency under this subsection shall be made in accordance
    with section 1531 of title 31, United States Code.

        (b) Determination of CIA Positions To Be Transferred.--Not earlier
    than two years after the effective date of this subtitle, the Secretary
    of Defense and the Director of Central Intelligence shall determine
    which, if any, positions and personnel of the Central Intelligence
    Agency are to be transferred to the National Imagery and Mapping Agency.
    The positions to be transferred, and the employees serving in such
    positions, shall be transferred to the National Imagery and Mapping
    Agency under terms and conditions prescribed by the Secretary of Defense
    and the Director of Central Intelligence.
        (c) Rule For CIA Imagery Activities Only Partially Transferred.--If
    the National Photographic Interpretation Center of the Central
    Intelligence Agency or any imagery-related activity of the Central
    Intelligence Agency authorized to be performed by the National Imagery
    and Mapping Agency is not completely transferred to the National Imagery
    and Mapping Agency, the Secretary of Defense and the Director of Central
    Intelligence shall--
                (1) jointly determine which, if any, contracts, leases,
            property, and records employed, used, held, arising from,
            available to, or otherwise relating to such Center or activity
            is to be transferred to the National Imagery and Intelligence
            Agency; and
                (2) provide by written agreement for the transfer of such
            items.
    SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL
                              SECURITY ACT OF 1947.

        (a) Agency Functions.--Paragraph (2) of section 105(b) of the
    National Security Act of 1947 (50 U.S.C. 403-5(b)) is amended to read as
    follows:
                ``(2) through the National Imagery and Mapping Agency
            (except as otherwise directed by the President or the National
            Security Council), with appropriate representation from the

    [[Page 110 STAT. 2685]]

            intelligence community, the continued operation of an effective
            unified organization within the Department of Defense--
                        ``(A) for carrying out tasking of imagery
                    collection;
                        ``(B) for the coordination of imagery processing and
                    exploitation activities;
                        ``(C) for ensuring the dissemination of imagery in a
                    timely manner to authorized recipients; and
                        ``(D) notwithstanding any other provision of law,
                    for--
                              ``(i) prescribing technical architecture and
                          standards related to imagery intelligence and
                          geospatial information and ensuring compliance
                          with such architecture and standards; and
                              ``(ii) developing and fielding systems of
                          common concern related to imagery intelligence and
                          geospatial information;''.

        (b) National Mission.--Title I of such Act (50 U.S.C. 402 et seq.)
    is amended by adding at the end the following new section:

            ``national mission of national imagery and mapping agency

        ``Sec. 120. <<NOTE: 50 USC 404e.>> (a) In General.--In addition to
    the Department of Defense missions set forth in section 442 of title 10,
    United States Code, the National Imagery and Mapping Agency shall
    support the imagery requirements of the Department of State and other
    departments and agencies of the United States outside the Department of
    Defense.

        ``(b) Requirements and Priorities.--The Director of Central
    Intelligence shall establish requirements and priorities governing the
    collection of national intelligence by the National Imagery and Mapping
    Agency under subsection (a).
        ``(c) Correction of Deficiencies.--The Director of Central
    Intelligence shall develop and implement such programs and policies as
    the Director and the Secretary of Defense jointly determine necessary to
    review and correct deficiencies identified in the capabilities of the
    National Imagery and Mapping Agency to accomplish assigned national
    missions, including support to the all-source analysis and production
    process. The Director shall consult with the Secretary of Defense on the
    development and implementation of such programs and policies. The
    Secretary shall obtain the advice of the Chairman of the Joint Chiefs of
    Staff regarding the matters on which the Director and the Secretary are
    to consult under the preceding sentence.''.
        (c) Tasking of Imagery Assets.--Title I of such Act is further
    amended by adding at the end the following new section:

                         ``collection tasking authority

        ``Sec. 121. <<NOTE: 50 USC 404f.>> Unless otherwise directed by the
    President, the Director of Central Intelligence shall have authority
    (except as otherwise agreed by the Director and the Secretary of
    Defense) to--
                ``(1) approve collection requirements levied on national
            imagery collection assets;
                ``(2) determine priorities for such requirements; and
                ``(3) resolve conflicts in such priorities.''.

    [[Page 110 STAT. 2686]]

        (d) Clerical Amendment.--The table of contents in the first section
    of such Act is amended by inserting after the item relating to section
    109 the following new items:

    ``Sec. 120. National mission of National Imagery and Mapping Agency.
    ``Sec. 121. Collection tasking authority.''.

    SEC. 1115. CREDITABLE <<NOTE: 10 USC 441 note.>> CIVILIAN SERVICE
                              FOR CAREER CONDITIONAL EMPLOYEES OF THE
                              DEFENSE MAPPING AGENCY.

        In the case of an employee of the National Imagery and Mapping
    Agency who, on the day before the effective date of this title, was an
    employee of the Defense Mapping Agency in a career-conditional status,
    the continuous service of that employee as an employee of the National
    Imagery and Mapping Agency on and after such date shall be considered
    creditable service for the purpose of any determination of the career
    status of the employee.

    SEC. 1116. <<NOTE: 10 USC 441 note.>> SAVING PROVISIONS.

        (a) Continuing Effect on Legal Documents.--All orders,
    determinations, rules, regulations, permits, agreements, international
    agreements, grants, contracts, leases, certificates, licenses,
    registrations, privileges, and other administrative actions--
                (1) which have been issued, made, granted, or allowed to
            become effective by the President, any Federal agency or
            official thereof, or by a court of competent jurisdiction, in
            connection with any of the functions which are transferred under
            this title or any function that the National Imagery and Mapping
            Agency is authorized to perform by law, and
                (2) which are in effect at the time this title takes effect,
            or were final before the effective date of this title and are to
            become effective on or after the effective date of this title,

    shall continue in effect according to their terms until modified,
    terminated, superseded, set aside, or revoked in accordance with law by
    the President, the Secretary of Defense, the Director of the National
    Imagery and Mapping Agency or other authorized official, a court of
    competent jurisdiction, or by operation of law.
        (b) Proceedings Not Affected.--This title and the amendments made by
    this title shall not affect any proceedings, including notices of
    proposed rulemaking, or any application for any license, permit,
    certificate, or financial assistance pending before an element of the
    Department of Defense or Central Intelligence Agency at the time this
    title takes effect, with respect to function of that element transferred
    by section 1122, but such proceedings and applications shall be
    continued. Orders shall be issued in such proceedings, appeals shall be
    taken therefrom, and payments shall be made pursuant to such orders, as
    if this title had not been enacted, and orders issued in any such
    proceedings shall continue in effect until modified, terminated,
    superseded, or revoked by a duly authorized official, by a court of
    competent jurisdiction, or by operation of law. Nothing in this section
    shall be deemed to prohibit the discontinuance or modification of any
    such proceeding under the same terms and conditions and to the same
    extent that such proceeding could have been discontinued or modified if
    this title had not been enacted.

    SEC. 1117. <<NOTE: 10 USC 441 note.>> DEFINITIONS.

        In this subtitle, the terms ``function'', ``imagery'', ``imagery
    intelligence'', and ``geospatial information'' have the meanings given

    [[Page 110 STAT. 2687]]

    those terms in section 467 of title 10, United States Code, as added by
    section 1112.

    SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

        Funds are authorized to be appropriated for the National Imagery and
    Mapping Agency for fiscal year 1997 in amounts and for purposes, and
    subject to the terms, conditions, limitations, restrictions, and
    requirements, that are set forth in the Classified Annex to this Act.

              Subtitle B--Conforming Amendments and Effective Dates

    SEC. 1121. REDESIGNATION AND REPEALS.

        (a) Redesignation.--Chapter 23 of title 10, United States Code (as
    redesignated by section 1112(a)(1)) is amended by redesignating the
    sections in that chapter as sections 481 and 482, respectively.
        (b) Repeal of Superseded Law.--Chapter 167 of such title, as amended
    by section 1112(b), is repealed.

    SEC. 1122. REFERENCE AMENDMENTS.

        (a) Title 5, United States Code.--Title 5, United States Code, is
    amended as follows:
                (1) Central imagery office.--Sections 2302(a)(2)(C)(ii),
            3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B),
            5102(a)(1) (in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), and
            7323(b)(2)(B)(i)(XIII) are amended by striking out ``Central
            Imagery Office'' and inserting in lieu thereof ``National
            Imagery and Mapping Agency''.
                (2) Director, central imagery office.--Section 6339(a)(2)(E)
            is amended by striking out ``Central Imagery Office, the
            Director of the Central Imagery Office'' and inserting in lieu
            thereof ``National Imagery and Mapping Agency, the Director of
            the National Imagery and Mapping Agency''.

        (b) Other Laws.--The following provisions of law are amended by
    striking out ``Central Imagery Office'' and inserting in lieu thereof
    ``National Imagery and Mapping Agency'':
                (1) National security act of 1947.--Section 3(4)(E) of the
            National Security Act of 1947 (50 U.S.C. 401a(4)(E)).
                (2) Ethics in government act of 1978.--Section 105(a) of the
            Ethics in Government Act of 1978 (Public Law
            95-521; 5 U.S.C. App. 4). <<NOTE: 5 USC app. 105.>>
                (3) Employee polygraph protection act.--Section
            7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 1988
            (Public Law 100-347; 29 U.S.C. 2006(b)(2)(A)(i)).

        (c) Cross Reference.--Section 82 of title 14, United States Code, is
    amended by striking out ``chapter 167'' and inserting in lieu thereof
    ``subchapter II of chapter 22''.

    SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--
                (1) The table of chapters at the beginning of subtitle A of
            title 10, United States Code, is amended--
                        (A) by striking out the item relating to chapter 22
                    and inserting in lieu thereof the following:

    [[Page 110 STAT. 2688]]

    ``22. National Imagery and Mapping Agency.........................  441
    ``23. Miscellaneous Studies and Reports...........................471'';

                    and
                        (B) by striking out the item relating to chapter
                    167.
                (2) The table of chapters at the beginning of part I of such
            subtitle is amended by striking out the item relating to chapter
            22 and inserting in lieu thereof the following:

    ``22. National Imagery and Mapping Agency.........................  441
    ``23. Miscellaneous Studies and Reports...........................471'';

                (3) The table of chapters at the beginning of part IV of
            such subtitle is amended by striking out the item relating to
            chapter 167.
                (4) The items in the table of sections at the beginning of
            chapter 23 of title 10, United States Code (as redesignated by
            section 1112(a)(1)), are revised so as to reflect the
            redesignations made by section 1121(a).

        (b) Title 44, United States Code.--
                (1) The heading of section 1336 of title 44, United States
            Code, is amended to read as follows:
    ``Sec. 1336. National Imagery and Mapping Agency: special
                        publications''.
                (2) The item relating to that section in the tables of
            sections at the beginning of chapter 13 of such title is amended
            to read as follows:

    ``1336. National Imagery and Mapping Agency: special publications.''.

    SEC. 1124. <<NOTE: 10 USC 193 note.>> EFFECTIVE DATE.

        This title and the amendments made by this title shall take effect
    on October 1, 1996, or the date of the enactment of this Act, whichever
    is later.

    TITLE <<NOTE: Reserve Forces Revitalization Act of 1996.>>  XII--RESERVE
    FORCES REVITALIZATION

                    TITLE XII--RESERVE FORCES REVITALIZATION

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

                     Subtitle A--Reserve Component Structure

    Sec. 1211. Reserve component commands.
    Sec. 1212. Reserve component chiefs.
    Sec. 1213. Review of active duty and Reserve general and flag officer
               authorizations.
    Sec. 1214. Guard and Reserve technicians.

                   Subtitle B--Reserve Component Accessibility

    Sec. 1231. Report to Congress on measures to improve National Guard and
               Reserve ability to respond to emergencies.
    Sec. 1232. Report to Congress concerning tax incentives for employers of
               members of Reserve components.
    Sec. 1233. Report to Congress concerning income insurance program for
               activated Reservists.
    Sec. 1234. Report to Congress concerning small business loans for
               members
               released from Reserve service during contingency operations.

                     Subtitle C--Reserve Forces Sustainment

    Sec. 1251. Report concerning tax deductibility of nonreimbursable
               expenses.
    Sec. 1252. Authority to pay transient housing charges for members
               performing
               active duty for training.

    [[Page 110 STAT. 2689]]

    Sec. 1253. Sense of Congress concerning quarters allowance during
               service on
               active duty for training.
    Sec. 1254. Sense of Congress concerning military leave policy.
    Sec. 1255. Reserve Forces Policy Board.
    Sec. 1256. Report on parity of benefits for active duty service and
               Reserve service.
    Sec. 1257. Information on proposed funding for the Guard and Reserve
               components in future-years defense programs.

    SEC. 1201. <<NOTE: 10 USC 10001 note.>> SHORT TITLE.

        This title may be cited as the ``Reserve Forces Revitalization Act
    of 1996''.

    SEC. 1202. <<NOTE: 10 USC 10001 note.>> PURPOSE.

        The purpose of this title is to revise the basic statutory
    authorities governing the organization and administration of the reserve
    components of the Armed Forces in order to recognize the realities of
    reserve component partnership in the Total Force and to better prepare
    the American citizen-soldier, sailor, airman, and Marine in time of
    peace for duties in war.

                     Subtitle A--Reserve Component Structure

    SEC. 1211. RESERVE COMPONENT COMMANDS.

        (a) Establishment.--(1) Part I of subtitle E of title 10, United
    States Code, is amended by inserting after chapter 1005 the following
    new chapter:

                   ``CHAPTER 1006--RESERVE COMPONENT COMMANDS

    ``Sec.
    ``10171. United States Army Reserve Command.
    ``10172. Naval Reserve Force.
    ``10173. Marine Forces Reserve.
    ``10174. Air Force Reserve Command.

    ``Sec. 10171. United States Army Reserve Command

        ``(a) Command.--The United States Army Reserve Command is a separate
    command of the Army commanded by the Chief of Army Reserve.
        ``(b) Chain of Command.--Except as otherwise prescribed by the
    Secretary of Defense, the Secretary of the Army shall prescribe the
    chain of command for the United States Army Reserve Command.
        ``(c) Assignment of Forces.--The Secretary of the Army--
                ``(1) shall assign to the United States Army Reserve Command
            all forces of the Army Reserve in the continental United States
            other than forces assigned to the unified combatant command for
            special operations forces established pursuant to section 167 of
            this title; and
                ``(2) except as otherwise directed by the Secretary of
            Defense in the case of forces assigned to carry out functions of
            the Secretary of the Army specified in section 3013 of this
            title, shall assign all such forces of the Army Reserve to the
            commander of the United States Atlantic Command.

    ``Sec. 10172. Naval Reserve Force

        ``(a) Establishment of Command.--The Secretary of the Navy, with the
    advice and assistance of the Chief of Naval Operations, shall establish
    a Naval Reserve Force. The Naval Reserve Force shall be operated as a
    separate command of the Navy.

    [[Page 110 STAT. 2690]]

        ``(b) Commander.--The Chief of Naval Reserve shall be the commander
    of the Naval Reserve Force. The commander of the Naval Reserve Force
    reports directly to the Chief of Naval Operations.
        ``(c) Assignment of Forces.--The Secretary of the Navy--
                ``(1) shall assign to the Naval Reserve Force specified
            portions of the Naval Reserve other than forces assigned to the
            unified combatant command for special operations forces
            established pursuant to section 167 of this title; and
                ``(2) except as otherwise directed by the Secretary of
            Defense in the case of forces assigned to carry out functions of
            the Secretary of the Navy specified in section 5013 of this
            title, shall assign to the combatant commands all such forces
            assigned to the Naval Reserve Force under paragraph (1) in the
            manner specified by the Secretary of Defense.

    ``Sec. 10173. Marine Forces Reserve

        ``(a) Establishment.--The Secretary of the Navy, with the advice and
    assistance of the Commandant of the Marine Corps, shall establish in the
    Marine Corps a command known as the Marine Forces Reserve.
        ``(b) Commander.--The Marine Forces Reserve is commanded by the
    Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve,
    reports directly to the Commandant of the Marine Corps.
        ``(c) Assignment of Forces.--The Commandant of the Marine Corps--
                ``(1) shall assign to the Marine Forces Reserve the forces
            of the Marine Corps Reserve stationed in the continental United
            States other than forces assigned to the unified combatant
            command for special operations forces established pursuant to
            section 167 of this title; and
                ``(2) except as otherwise directed by the Secretary of
            Defense in the case of forces assigned to carry out functions of
            the Secretary of the Navy specified in section 5013 of this
            title, shall assign to the combatant commands (through the
            Marine Corps component commander for each such command) all such
            forces assigned to the Marine Forces Reserve under paragraph (1)
            in the manner specified by the Secretary of Defense.

    ``Sec. 10174. Air Force Reserve Command

        ``(a) Establishment of Command.--The Secretary of the Air Force,
    with the advice and assistance of the Chief of Staff of the Air Force,
    shall establish an Air Force Reserve Command. The Air Force Reserve
    Command shall be operated as a separate command of the Air Force.
        ``(b) Commander.--The Chief of Air Force Reserve is the Commander of
    the Air Force Reserve Command. The commander of the Air Force Reserve
    Command reports directly to the Chief of Staff of the Air Force.
        ``(c) Assignment of Forces.--The Secretary of the Air Force--
                ``(1) shall assign to the Air Force Reserve Command all
            forces of the Air Force Reserve stationed in the continental
            United States other than forces assigned to the unified
            combatant command for special operations forces established
            pursuant to section 167 of this title; and

    [[Page 110 STAT. 2691]]

                ``(2) except as otherwise directed by the Secretary of
            Defense in the case of forces assigned to carry out functions of
            the Secretary of the Air Force specified in section 8013 of this
            title, shall assign to the combatant commands all such forces
            assigned to the Air Force Reserve Command under paragraph (1) in
            the manner specified by the Secretary of Defense.''.

        (2) The tables of chapters at the beginning of part I of such
    subtitle and at the beginning of such subtitle are each amended by
    inserting after the item relating to chapter 1005 the following new
    item:

    ``1006. Reserve Component Commands..............................10171''.

        (b) Conforming Repeal.--Section 903 of the National Defense
    Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is
    repealed.
        (c) Implementation <<NOTE: 10 USC 10171 note.>> Schedule.--
    Implementation of chapter 1006 of title 10, United States Code, as added
    by subsection (a), shall begin not later than 90 days after the date of
    the enactment of this Act and shall be completed not later than one year
    after such date.

    SEC. 1212. RESERVE COMPONENT CHIEFS.

        (a) Chief of Army Reserve.--Section 3038 of title 10, United States
    Code, is amended by adding at the end the following new subsections:
        ``(d) Budget.--The Chief of Army Reserve is the official within the
    executive part of the Department of the Army who, subject to the
    authority, direction, and control of the Secretary of the Army and the
    Chief of Staff, is responsible for justification and execution of the
    personnel, operation and maintenance, and construction budgets for the
    Army Reserve. As such, the Chief of Army Reserve is the director and
    functional manager of appropriations made for the Army Reserve in those
    areas.
        ``(e) Full Time Support Program.--The Chief of Army Reserve manages,
    with respect to the Army Reserve, the personnel program of the
    Department of Defense known as the Full Time Support Program.

        ``(f) Annual Report.--(1) The Chief of Army Reserve shall submit to
    the Secretary of Defense, through the Secretary of the Army, an annual
    report on the state of the Army Reserve and the ability of the Army
    Reserve to meet its missions. The report shall be prepared in
    conjunction with the Chief of Staff of the Army and may be submitted in
    classified and unclassified versions.

        ``(2) The Secretary of Defense shall transmit the annual report of
    the Chief of Army Reserve under paragraph (1) to Congress, together with
    such comments on the report as the Secretary considers appropriate. The
    report shall be transmitted at the same time each year that the annual
    report of the Secretary under section 113 of this title is submitted to
    Congress.''.

        (b) Chief of Naval Reserve.--(1) Chapter 513 of such title is
    amended by inserting after section 5142a the following new section:

    ``Sec. 5143. Office of Naval Reserve: appointment of Chief

        ``(a) Establishment of Office: Chief of Naval Reserve.--There is in
    the executive part of the Department of the Navy, on the staff of the
    Chief of Naval Operations, an Office of the

    [[Page 110 STAT. 2692]]

    Naval Reserve, which is headed by a Chief of Naval Reserve. The Chief of
    Naval Reserve--
                ``(1) is the principal adviser on Naval Reserve matters to
            the Chief of Naval Operations; and
                ``(2) is the commander of the Naval Reserve Force.

        ``(b) Appointment.--The <<NOTE: President.>> President, by and with
    the advice and consent of the Senate, shall appoint the Chief of Naval
    Reserve from officers who--
                ``(1) have had at least 10 years of commissioned service;
                ``(2) are in a grade above captain; and
                ``(3) have been recommended by the Secretary of the Navy.

        ``(c) Grade.--(1) The Chief of Naval Reserve holds office for a term
    determined by the Chief of Naval Operations, normally four years, but
    may be removed for cause at any time. He is eligible to succeed himself.
        ``(2) The Chief of Naval Reserve, while so serving, has a grade
    above rear admiral (lower half), without vacating the officer's
    permanent grade.
        ``(d) Budget.--The Chief of Naval Reserve is the official within the
    executive part of the Department of the Navy who, subject to the
    authority, direction, and control of the Secretary of the Navy and the
    Chief of Naval Operations, is responsible for preparation,
    justification, and execution of the personnel, operation and
    maintenance, and construction budgets for the Naval Reserve. As such,
    the Chief of Naval Reserve is the director and functional manager of
    appropriations made for the Naval Reserve in those areas.
        ``(e) Annual Report.--(1) The Chief of Naval Reserve shall submit to
    the Secretary of Defense, through the Secretary of the Navy, an annual
    report on the state of the Naval Reserve and the ability of the Naval
    Reserve to meet its missions. The report shall be prepared in
    conjunction with the Chief of Naval Operations and may be submitted in
    classified and unclassified versions.
        ``(2) The Secretary of Defense shall transmit the annual report of
    the Chief of Naval Reserve under paragraph (1) to Congress, together
    with such comments on the report as the Secretary considers appropriate.
    The report shall be transmitted at the same time each year that the
    annual report of the Secretary under section 113 of this title is
    submitted to Congress.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 5142a the
    following new item:

    ``5143. Office of Naval Reserve: appointment of Chief.''.

        (c) Chief of Marine Forces Reserve.--(1) Chapter 513 of such title
    is amended by inserting after section 5143 (as added by subsection (b))
    the following new section:

    ``Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

        ``(a) Establishment of Office; Commander, Marine Forces Reserve.--
    There is in the executive part of the Department of the Navy an Office
    of the Marine Forces Reserve, which is headed by the Commander, Marine
    Forces Reserve. The Commander, Marine Forces Reserve, is the principal
    adviser to the Commandant on Marine Forces Reserve matters.

    [[Page 110 STAT. 2693]]

        ``(b) Appointment.--The <<NOTE: President.>> President, by and with
    the advice and consent of the Senate, shall appoint the Commander,
    Marine Forces Reserve, from officers of the Marine Corps who--
                ``(1) have had at least 10 years of commissioned service;
                ``(2) are in a grade above colonel; and
                ``(3) have been recommended by the Secretary of the Navy.

        ``(c) Term of Office; Grade.--(1) The Commander, Marine Forces
    Reserve, holds office for a term determined by the Commandant of the
    Marine Corps, normally four years, but may be removed for cause at any
    time. He is eligible to succeed himself.
        ``(2) The Commander, Marine Forces Reserve, while so serving, has a
    grade above brigadier general, without vacating the officer's permanent
    grade.
        ``(d) Annual Report.--(1) The Commander, Marine Forces Reserve,
    shall submit to the Secretary of Defense, through the Secretary of the
    Navy, an annual report on the state of the Marine Corps Reserve and the
    ability of the Marine Corps Reserve to meet its missions. The report
    shall be prepared in conjunction with the Commandant of the Marine Corps
    and may be submitted in classified and unclassified versions.
        ``(2) The Secretary of Defense shall transmit the annual report of
    the Commander, Marine Forces Reserve, under paragraph (1) to Congress,
    together with such comments on the report as the Secretary considers
    appropriate. The report shall be transmitted at the same time each year
    that the annual report of the Secretary under section 113 of this title
    is submitted to Congress.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 5143 (as added
    by subsection (b)) the following new item:

    ``5144. Office of Marine Forces Reserve: appointment of Commander.''.

        (d) Chief of Air Force Reserve.--Section 8038 of such title is
    amended by adding at the end the following new subsections:
        ``(d) Budget.--The Chief of Air Force Reserve is the official within
    the executive part of the Department of the Air Force who, subject to
    the authority, direction, and control of the Secretary of the Air Force
    and the Chief of Staff, is responsible for preparation, justification,
    and execution of the personnel, operation and maintenance, and
    construction budgets for the Air Force Reserve. As such, the Chief of
    Air Force Reserve is the director and functional manager of
    appropriations made for the Air Force Reserve in those areas.
        ``(e) Full Time Support Program.--(1) The Chief of Air Force Reserve
    manages, with respect to the Air Force Reserve, the personnel program of
    the Department of Defense known as the Full Time Support Program.

        ``(f) Annual Report.--(1) The Chief of Air Force Reserve shall
    submit to the Secretary of Defense, through the Secretary of the Air
    Force, an annual report on the state of the Air Force Reserve and the
    ability of the Air Force Reserve to meet its missions. The report shall
    be prepared in conjunction with the Chief of Staff of the Air Force and
    may be submitted in classified and unclassified versions.
        ``(2) The Secretary of Defense shall transmit the annual report of
    the Chief of Air Force Reserve under paragraph (1) to Congress, together
    with such comments on the report as the Secretary considers appropriate.
    The report shall be transmitted at the same time

    [[Page 110 STAT. 2694]]

    each year that the annual report of the Secretary under section 113 of
    this title is submitted to Congress.''.
        (e) Conforming Amendment.--Section 641(1)(B) of such title is
    amended by inserting ``5143, 5144,'' after ``3038,''.
    SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG
                              OFFICER AUTHORIZATIONS.

        (a) Report to Congress.--Not later than six months after the date of
    the enactment of this Act, the Secretary of Defense shall submit to
    Congress a report containing any recommendations of the Secretary
    (together with the rationale of the Secretary for the recommendations)
    concerning the following:
                (1) Revision of the limitations on general and flag officer
            grade authorizations and distribution in grade prescribed by
            sections 525, 526, and 12004 of title 10, United States Code.
                (2) Statutory designation of the positions and grades of any
            additional general and flag officers in the commands and offices
            created by sections 1211 and 1212.

        (b) Matters To Be Included.--The Secretary shall include in the
    report under subsection (a) the Secretary's views on whether current
    limitations referred to in subsection (a)--
                (1) permit the Secretaries of the military departments, in
            view of increased requirements for assignment of general and
            flag officers in positions external to their organic services,
            to meet adequately both internal and external requirements for
            general and flag officers;
                (2) adequately recognize the significantly increased role of
            the reserve components in both service-specific and joint
            operations; and
                (3) permit the Secretaries of the military departments and
            the reserve components to assign general and flag officers to
            active and reserve component positions with grades commensurate
            with the scope of duties and responsibilities of the position.

        (c) Exemptions From Active-Duty Ceilings.--(1) The Secretary shall
    include in the report under subsection (a) the Secretary's
    recommendations regarding the merits of exempting from any active-duty
    ceiling (established by law or administrative action) the following
    officers:
                (A) Reserve general and flag officers assigned to positions
            specified in the organizations created by this title.
                (B) Reserve general and flag officers serving on active
            duty, but who are excluded from the active-duty list.

        (2) If the Secretary determines under paragraph (1) that any Reserve
    general or flag officers should be exempt from active duty limits, the
    Secretary shall include in the report under subsection (a) the
    Secretary's recommendations for--
                (A) the effective management of those Reserve general and
            flag officers; and
                (B) revision of active duty ceilings so as to prevent an
            increase in the numbers of active general and flag officers
            authorizations due solely to the removal of Reserve general and
            flag officers from under the active duty authorizations.

        (3) If the Secretary determines under paragraph (1) that active and
    reserve general officers on active duty should continue to be managed
    under a common ceiling, the Secretary shall make recommendations for the
    appropriate apportionment of numbers for general and flag officers among
    active and reserve officers.

    [[Page 110 STAT. 2695]]

        (d) Reserve Forces Policy Board Participation.--The Secretary of
    Defense shall ensure that the Reserve Forces Policy Board participates
    in the internal Department of Defense process for development of the
    recommendations of the Secretary contained in the report under
    subsection (a). If the Board submits to the Secretary any comments or
    recommendations for inclusion in the report, the Secretary shall
    transmit them to Congress, with the report, in the same form as that in
    which they were submitted to the Secretary.
        (e) GAO Review.--The <<NOTE: Reports.>> Comptroller General of the
    United States shall assess the criteria used by the Secretary of Defense
    to develop recommendations for purposes of the report under this section
    and shall submit to Congress, not later than 30 days after the date on
    which the report of the Secretary under this section is submitted, a
    report setting forth the Comptroller General's conclusions concerning
    the adequacy and completeness of the recommendations made by the
    Secretary in the report.

    SEC. 1214. GUARD AND RESERVE TECHNICIANS.

        Section 10216 of title 10, United States Code, as amended by section
    413, is amended--
                (1) by redesignating subsections (a), (b), and (c) as
            subsections (b), (c), and (d), respectively;
                (2) by inserting after the section heading the following new
            subsection (a):

        ``(a) In General.--Military technicians are Federal civilian
    employees hired under title 5 and title 32 who are required to maintain
    dual-status as drilling reserve component members as a condition of
    their Federal civilian employment. Such employees shall be authorized
    and accounted for as a separate category of dual-status civilian
    employees, exempt as specified in subsection (b)(3) from any general or
    regulatory requirement for adjustments in Department of Defense civilian
    personnel.''; and
                (3) in paragraph (3) of subsection (b), as redesignated by
            paragraph (1), by striking out ``in high-priority units and
            organizations specified in paragraph (1)''.

                   Subtitle B--Reserve Component Accessibility

    SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL
                              GUARD AND RESERVE ABILITY TO RESPOND TO
                              EMERGENCIES.

        (a) Report.--Not later than six months after the date of the
    enactment of this Act, the Secretary of Defense shall submit to Congress
    a report regarding reserve component responsiveness to both domestic
    emergencies and national contingency operations. The report shall set
    forth the measures taken, underway, and projected to be taken to improve
    the timeliness, adequacy, and effectiveness of reserve component
    responses to such emergencies and operations.
        (b) Matters Related to Responsiveness to Domestic Emergencies.--The
    report shall address the following:
                (1) The need to expand the time period set by section
            12301(b) of title 10, United States Code, which permits the

    [[Page 110 STAT. 2696]]

            involuntary recall at any time to active duty of units and
            individuals for up to 15 days per year.
                (2) The recommendations of the 1995 report of the RAND
            Corporation entitled ``Assessing the State and Federal Missions
            of the National Guard'', as follows:
                        (A) That Federal law be clarified and amended to
                    authorize Presidential use of the Federal reserves of
                    all military services for domestic emergencies and
                    disasters without any time constraint.
                        (B) That the Secretary of Defense develop and
                    support establishment of an appropriate national level
                    compact for interstate sharing of resources, including
                    the domestic capabilities of the national guards of the
                    States, during emergencies and disasters.
                        (C) That Federal level contingency stocks be created
                    to support the National Guard in domestic disasters.
                        (D) That Federal funding and regulatory support be
                    provided for Federal-State disaster emergency response
                    planning exercises.

        (c) Matters Related to Presidential Reserve Call-Up Authority.--The
    report under this section shall specifically address matters related to
    the authority of the President to activate for service on active duty
    units and members of reserve components under sections 12301, 12302, and
    12304 of title 10, United States Code, including--
                (1) whether such authority is adequate to meet the full
            range of reserve component missions for the 21st century,
            particularly with regard to the time periods for which
            such units and members may be on active duty under those
            authorities and the ability to activate both units and
            individual members; and
                (2) whether the three-tiered set of statutory authorities
            (under such sections 12301, 12302, and 12304) should be
            consolidated, modified, or in part eliminated in order to
            facilitate current and future use of Reserve units and
            individual reserve component members for a broader range of
            missions, and, if so, in what manner.

        (d) Matters Related to Release From Active Duty.--The report under
    this section shall include findings and recommendations (based upon a
    review of current policies and procedures) concerning procedures for
    release from active duty of units and members of reserve components who
    have been involuntarily called or ordered to active duty under section
    12301, 12302, or 12304 of title 10, United States Code, with specific
    recommendations concerning the desirability of statutory provisions to--
                (1) establish specific guidelines for when it is appropriate
            (or inappropriate) to retain on active duty such reserve
            component units when active component units are available to
            perform the mission being performed by the reserve component
            unit;
                (2) minimize the effects of frequent mobilization of the
            civilian employers, as well as the effects of frequent
            mobilization on recruiting and retention in the reserve
            components; and
                (3) address other matters relating to the needs of such
            members of reserve components, their employers, and (in the case
            of such members who own businesses) their employees, while such
            members are on active duty.

    [[Page 110 STAT. 2697]]

        (e) Reserve Forces Policy Board Participation.--The Secretary of
    Defense shall ensure that the Reserve Forces Policy Board participates
    in the internal Department of Defense process for development of the
    recommendations of the Secretary contained in the report under
    subsection (a). If the Board submits to the Secretary any comments or
    recommendations for inclusion in the report, the Secretary shall
    transmit them to Congress, with the report, in the same form as that in
    which they were submitted to the Secretary.
        (f) GAO Review.--The <<NOTE: Reports.>> Comptroller General of the
    United States shall assess the criteria used by the Secretary of Defense
    to develop recommendations for purposes of the report under this section
    and shall submit to Congress, not later than 30 days after the date on
    which the report of the Secretary under this section is submitted, a
    report setting forth the Comptroller General's conclusions concerning
    the adequacy and completeness of the recommendations made by the
    Secretary in the report.
    SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR
                              EMPLOYERS OF MEMBERS OF RESERVE
                              COMPONENTS.

        Not later than 180 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to Congress a report setting forth
    a draft of legislation to provide tax incentives to employers of members
    of reserve components in order to compensate employers for absences of
    those employees due to required training and for absences due to
    performance of active duty.
    SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM
                              FOR ACTIVATED RESERVISTS.

        Not later than 180 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to Congress a report setting forth
    legislative recommendations for changes to chapter 1214 of title 10,
    United States Code. Such recommendations shall in particular provide, in
    the case of a mobilized member who owns a business, income replacement
    for that business and for employees of that member or business who have
    a loss of income during the period of such activation attributable to
    the activation of the member.
    SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR
                              MEMBERS RELEASED FROM RESERVE SERVICE
                              DURING CONTINGENCY OPERATIONS.

        Not later than 180 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to Congress a report setting forth
    a draft of legislation to establish a small business loan program to
    provide members of reserve components who are ordered to active duty or
    active Federal service (other than for training) during a contingency
    operation (as defined in section 101 of title 10, United States Code)
    low-cost loans to assist those members in retaining or rebuilding
    businesses that were affected by their service on active duty or in
    active Federal service.

    [[Page 110 STAT. 2698]]

                     Subtitle C--Reserve Forces Sustainment

    SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE
                              EXPENSES.

        Not later than 180 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to Congress a report setting forth
    a draft of legislation to restore the tax deductibility of
    nonreimbursable expenses incurred by members of reserve components in
    connection with military service.
    SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS
                              PERFORMING ACTIVE DUTY FOR TRAINING.

        Section 404(j)(1) of title 37, United States Code, is amended by
    striking out ``annual training duty'' and inserting in lieu thereof
    ``active duty for training''.
    SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING
                              SERVICE ON ACTIVE DUTY FOR TRAINING.

        It is the sense of Congress that the United States should continue
    to pay members of reserve components appropriate quarters allowances
    during periods of service on active duty for training.
    SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE
                              POLICY.

        It is the sense of Congress that military leave policies in effect
    as of the date of the enactment of this Act with respect to members of
    the reserve components should not be changed.
    SEC. 1255. RESERVE FORCES POLICY BOARD.

        (a) Commendation.--The Congress commends the Reserve Forces Policy
    Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-
    476), for its fine work in the past as an independent source of advice
    to the Secretary of Defense on all matters pertaining to the reserve
    components.
        (b) Sense of Congress.--It is the sense of Congress that the Reserve
    Forces Policy Board and the reserve forces policy committees for the
    individual branches of the Armed
    Forces should continue to perform the vital role of providing the
    civilian leadership of the Department of Defense with independent advice
    on matters pertaining to the reserve components.

        (c) Annual Report of Reserve Forces Policy Board.--Section 113(c) of
    title 10, United States Code, is amended--
                (1) by striking out paragraph (3);
                (2) by redesignating paragraphs (1), (2), and (4) as
            subparagraphs (A), (B), and (C), respectively;
                (3) by inserting ``(1)'' after ``(c)'';
                (4) by inserting ``and'' at the end of subparagraph (B), as
            redesignated by paragraph (2); and
                (5) by adding at the end the following:

        ``(2) At the same time that the Secretary submits the annual report
    under paragraph (1), the Secretary shall transmit to the President and
    Congress a separate report from the Reserve Forces Policy Board on the
    reserve programs of the Department of Defense and on any other matters
    that the Reserve Forces Policy Board considers appropriate to include in
    the report.''.

    [[Page 110 STAT. 2699]]

    SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY
                              SERVICE AND RESERVE SERVICE.

        No later than six months after the date of the enactment of this
    Act, the Secretary of Defense shall submit to Congress a report
    providing recommendations for changes in law that the Secretary
    considers necessary, feasible, and affordable to reduce the disparities
    in pay and benefits that occur between active component members of the
    Armed Forces and reserve component members as a result of eligibility
    based on length of time on active duty.
    SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND
                              RESERVE COMPONENTS IN FUTURE-YEARS
                              DEFENSE PROGRAMS.

        (a) In General.--(1) Chapter 1013 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 10543. National Guard and reserve component equipment procurement
                            and military construction funding: inclusion in
                            future-years defense program

        ``The Secretary of Defense shall specify in each future-years
    defense program submitted to Congress under section 221 of this title
    the estimated expenditures and the proposed appropriations, for each
    fiscal year of the period covered by that program, for the procurement
    of equipment and for military construction for each of the reserve
    components of the armed forces.''.

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

    ``10543. National Guard and reserve component equipment procurement and
               military construction funding: inclusion in future-years
               defense program.''.

        (b) Effective <<NOTE: Applicability. 10 USC 10543 note.>> Date.--
    Section 10543 of title 10, United States Code, as added by subsection
    (a), shall apply with respect to each future-years defense program
    submitted to Congress after the date of the enactment of this Act.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

    Subtitle A--Arms Control, Counterpro- liferation Activities, and Related
                                     Matters

    Sec. 1301. Extension of counterproliferation authorities.
    Sec. 1302. Limitation on retirement or dismantlement of strategic
               nuclear delivery systems.
    Sec. 1303. Strengthening certain sanctions against nuclear proliferation
               activities.
    Sec. 1304. Authority to pay certain expenses relating to humanitarian
               and civic
               assistance for clearance of landmines.
    Sec. 1305. Report on military capabilities of People's Republic of
               China.
    Sec. 1306. Presidential report regarding weapons proliferation and
               policies of the People's Republic of China.
    Sec. 1307. United States-People's Republic of China Joint Defense
               Conversion Commission.
    Sec. 1308. Sense of Congress concerning export controls.
    Sec. 1309. Counterproliferation Program Review Committee.
    Sec. 1310. Sense of Congress concerning assisting other countries to
               improve
               security of fissile material.
    Sec. 1311. Review by Director of Central Intelligence of National
               Intelligence Estimate 95-19.

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

    Sec. 1321. Establishment of Commission.

    [[Page 110 STAT. 2700]]

    Sec. 1322. Duties of Commission.
    Sec. 1323. Report.
    Sec. 1324. Powers.
    Sec. 1325. Commission procedures.
    Sec. 1326. Personnel matters.
    Sec. 1327. Miscellaneous administrative provisions.
    Sec. 1328. Funding.
    Sec. 1329. Termination of the Commission.

                       Subtitle A--Arms Control, Counter-
                     proliferation Activities, and Related
                                     Matters

    SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

        (a) One-Year Extension of Authority.--Section 1505 of the Weapons of
    Mass Destruction Control Act of 1992 (title XV of Public Law 102-484; 22
    U.S.C. 5859a) is amended--
                (1) in subsection (d)(3), by striking out ``or'' after
            ``fiscal year 1995,'' and by inserting ``, or $15,000,000 for
            fiscal year 1997'' before the period at the end; and
                (2) in subsection (f), by striking out ``1996'' and
            inserting in lieu thereof ``1997''.

        (b) Funding Flexibility.--Subsection (d) of such section is further
    amended by adding at the end the following new paragraph:
        ``(4)(A) In the event of a significant unforeseen development
    related to the activities of the United Nations Special Commission on
    Iraq for which the Secretary of Defense determines that financial
    assistance under this section is required at a level which would result
    in the total amount of assistance provided under this section during the
    then-current fiscal year exceeding the amount specified with respect to
    that year under paragraph (3), the Secretary of Defense may provide such
    assistance notwithstanding the limitation with respect to that fiscal
    year under paragraph (3). Funds for such purpose may be derived from any
    funds available to the Department of Defense for that fiscal year.
        ``(B) Financial assistance may be provided under subparagraph (A)
    only after the Secretary of Defense provides notice in writing to the
    committees of Congress named in subsection (e)(2) of the significant
    unforeseen development and of the Secretary's intent to provide
    assistance in excess of the limitation for that fiscal year under
    paragraph (3). However, if the Secretary determines in any case that
    under the specific circumstances of that case advance notice is not
    possible, such notice shall be provided as soon as possible and not
    later than 15 days after the date on which the assistance is provided.
    Any notice under this subparagraph shall include a description of the
    development, the amount of assistance provided or to be provided, and
    the source of the funds for that assistance.''.

    SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC
                NUCLEAR DELIVERY SYSTEMS.

        (a) Funding Limitation.--Funds available to the Department of
    Defense may not be obligated or expended during fiscal year 1997 for
    retiring or dismantling, or for preparing to retire or dismantle, any of
    the following strategic nuclear delivery systems:
                (1) B-52H bomber aircraft.
                (2) Trident ballistic missile submarines.

    [[Page 110 STAT. 2701]]

                (3) Minuteman III intercontinental ballistic missiles.
                (4) Peacekeeper intercontinental ballistic missiles.

        (b) Waiver Authority.--If the START II Treaty enters into force
    during fiscal year 1996 or fiscal year 1997, the Secretary of Defense
    may waive the application of the limitation under paragraphs (2), (3),
    and (4) of subsection (a) to Trident ballistic missile submarines,
    Minuteman III intercontinental ballistic missiles, and Peacekeeper
    intercontinental ballistic missiles, respectively, to the extent that
    the Secretary determines necessary in order to implement the treaty.
        (c) Funding Limitation on Early Deactivation.--
    (1) <<NOTE: President. Reports.>> If the limitation under paragraphs
    (2), (3), and (4) of subsection (a) ceases to apply by reason of a
    waiver under subsection (b), funds available to the Department of
    Defense may nevertheless not be obligated or expended during fiscal year
    1997 to implement any agreement or understanding to undertake
    substantial early deactivation of a strategic nuclear delivery system
    specified in subsection (b) until 30 days after the date on which the
    President submits to Congress a report concerning such actions.

        (2) For purposes of this subsection, a substantial early
    deactivation is an action during fiscal year 1997 to deactivate a
    substantial number of strategic nuclear delivery systems specified in
    subsection (b) by--
                (A) removing nuclear warheads from those systems; or
                (B) taking other steps to remove those systems from combat
            status.

        (3) A report under this subsection shall include the following:
                (A) The text of any understanding or agreement between the
            United States and the Russian Federation concerning substantial
            early deactivation of strategic nuclear delivery
            systems under the START II Treaty.
                (B) The plan of the Department of Defense for implementing
            the agreement.
                (C) An assessment of the Secretary of Defense of the
            adequacy of the provisions contained in the agreement for
            monitoring and verifying compliance of Russia with the terms of
            the agreement.
                (D) A determination by the President as to whether the
            deactivations to occur under the agreement will be carried out
            in a symmetrical, reciprocal, or equivalent manner.
                (E) An assessment by the President of the effect of the
            proposed early deactivation on the stability of the strategic
            balance and relative strategic nuclear capabilities of the
            United States and the Russian Federation at various stages
            during deactivation and upon completion.

        (d) START II Treaty Defined.--For purposes of this section, the term
    ``START II Treaty'' means the Treaty Between the United States of
    America and the Russian Federation on Further Reduction and Limitation
    of Strategic Offensive Arms, signed at Moscow on January 3, 1993,
    including the following protocols and memorandum of understanding, all
    such documents being integral parts of and collectively referred to as
    the ``START II Treaty'' (contained in Treaty Document 103-1):
                (1) The Protocol on Procedures Governing Elimination of
            Heavy ICBMs and on Procedures Governing Conversion of Silo
            Launchers of Heavy ICBMs Relating to the Treaty Between the
            United States of America and the Russian Federation on

    [[Page 110 STAT. 2702]]

            Further Reduction and Limitation of Strategic Offensive Arms
            (also known as the ``Elimination and Conversion Protocol'').
                (2) The Protocol on Exhibitions and Inspections of Heavy
            Bombers Relating to the Treaty Between the United States and the
            Russian Federation on Further Reduction and Limitation of
            Strategic Offensive Arms (also known as the ``Exhibitions and
            Inspections Protocol'').
                (3) The Memorandum of Understanding on Warhead Attribution
            and Heavy Bomber Data Relating to the Treaty Between the United
            States of America and the Russian Federation on Further
            Reduction and Limitation of Strategic Offensive Arms (also known
            as the ``Memorandum on Attribution'').

        (e) Retention of B-52H Aircraft on Active Status.--(1) The Secretary
    of the Air Force shall maintain in active status (including the
    performance of standard maintenance and upgrades) the current fleet of
    B-52H bomber aircraft.
        (2) <<NOTE: Effective Date.>> For purposes of carrying out upgrades
    of B-52H bomber aircraft during fiscal year 1997, the Secretary shall
    treat the entire current fleet of such aircraft as aircraft expected to
    be maintained in active status during the six-year period beginning on
    October 1, 1996.
    SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR
                              PROLIFERATION ACTIVITIES.

        (a) Sanctions.--Section 2(b)(4) of the Export-Import Bank Act of
    1945 (12 U.S.C. 635(b)(4)) is amended to read as follows:
                ``(4)(A) <<NOTE: Reports.>> If the Secretary of State
            determines that--
                        ``(i) any country that has agreed to International
                    Atomic Energy Agency nuclear safeguards materially
                    violates, abrogates, or terminates, after October 26,
                    1977, such safeguards;
                        ``(ii) any country that has entered into an
                    agreement for cooperation concerning the civil use of
                    nuclear energy with the United States materially
                    violates, abrogates, or terminates, after October 26,
                    1977, any guarantee or other undertaking to the United
                    States made in such agreement;
                        ``(iii) any country that is not a nuclear-weapon
                    state detonates, after October 26, 1977, a nuclear
                    explosive device;
                        ``(iv) any country willfully aids or abets, after
                    June 29, 1994, any non-nuclear-weapon state to acquire
                    any such nuclear explosive device or to acquire
                    unsafeguarded special nuclear material; or
                        ``(v) any person knowingly aids or abets, after the
                    date of enactment of the National Defense Authorization
                    Act for Fiscal Year 1997, any non-nuclear-weapon state
                    to acquire any such nuclear explosive device or to
                    acquire unsafeguarded special nuclear material,
            then the Secretary of State shall submit a report to the
            appropriate committees of the Congress and to the Board of
            Directors of the Bank stating such determination and identifying
            each country or person the Secretary determines has so acted.
                ``(B)(i) If the Secretary of State makes a determination
            under subparagraph (A)(v) with respect to a foreign person, the
            Congress urges the Secretary to initiate consultations
            immediately with the government with primary jurisdiction over

    [[Page 110 STAT. 2703]]

            that person with respect to the imposition of the prohibition
            contained in subparagraph (C).
                ``(ii) In order that consultations with that government may
            be pursued, the Board of Directors of the Bank shall delay
            imposition of the prohibition contained in subparagraph (C) for
            up to 90 days if the Secretary of State requests the Board to
            make such delay. Following these consultations, the prohibition
            contained in subparagraph (C) shall apply immediately unless the
            Secretary determines and certifies to the Congress that that
            government has taken specific and effective actions, including
            appropriate penalties, to terminate the involvement of the
            foreign person in the activities described in subparagraph
            (A)(v). The Board of Directors of the Bank shall delay the
            imposition of the prohibition contained in subparagraph (C) for
            up to an additional 90 days if the Secretary requests the Board
            to make such additional delay and if the Secretary determines
            and certifies to the Congress that that government is in the
            process of taking the actions described in the preceding
            sentence.
                ``(iii) <<NOTE: Reports.>> Not later than 90 days after
            making a determination under subparagraph (A)(v), the Secretary
            of State shall submit to the appropriate committees of the
            Congress a report on the status of consultations with the
            appropriate government under this subparagraph, and the basis
            for any determination under clause (ii) that such government has
            taken specific corrective actions.
                ``(C) The Board of Directors of the Bank shall not give
            approval to guarantee, insure, or extend credit, or participate
            in the extension of credit in support of United States exports
            to any country, or to or by any person, identified in the report
            described in subparagraph (A).
                ``(D) The prohibition in subparagraph (C) shall not apply to
            approvals to guarantee, insure, or extend credit, or participate
            in the extension of credit in support of United States exports
            to a country with respect to which a determination is made under
            clause (i), (ii), (iii), or (iv) of subparagraph (A) regarding
            any specific event described in such clause if the President
            determines and certifies in writing to the Congress not less
            than 45 days prior to the date of the first approval following
            the determination that it is in the national interest for the
            Bank to give such approvals.
                ``(E) The prohibition in subparagraph (C) shall not apply to
            approvals to guarantee, insure, or extend credit, or participate
            in the extension of credit in support of United States exports
            to or by a person with respect to whom a determination is made
            under clause (v) of subparagraph (A) regarding any specific
            event described in such clause if--
                        ``(i) the Secretary of State determines and
                    certifies to the Congress that the appropriate
                    government has taken the corrective actions described in
                    subparagraph (B)(ii); or
                        ``(ii) the President determines and certifies in
                    writing to the Congress not less than 45 days prior to
                    the date of the first approval following the
                    determination that--
                              ``(I) reliable information indicates that--
                                        ``(aa) such person has ceased to aid
                                    or abet any non-nuclear-weapon state to
                                    acquire any

    [[Page 110 STAT. 2704]]

                                    nuclear explosive device or to acquire
                                    unsafeguarded special nuclear material;
                                    and
                                        ``(bb) steps have been taken to
                                    ensure that the activities described in
                                    item (aa) will not resume; or
                              ``(II) the prohibition would have a serious
                          adverse effect on vital United States interests.
                ``(F) For purposes of this paragraph:
                        ``(i) The term `country' has the meaning given to
                    `foreign state' in section 1603(a) of title 28, United
                    States Code.
                        ``(ii) The term `knowingly' is used within the
                    meaning of the term `knowing' in section 104(h)(3) of
                    the Foreign Corrupt Practices Act (15 U.S.C. 78dd-
                    2(h)(3)).
                        ``(iii) The term `person' means a natural person as
                    well as a corporation, business association,
                    partnership, society, trust, any other nongovernmental
                    entity, organization, or group, and any governmental
                    entity operating as a business enterprise, and any
                    successor of any such entity.
                        ``(iv) The term `nuclear-weapon state' has the
                    meaning given the term in Article IX(3) of the Treaty on
                    the Non-Proliferation of Nuclear Weapons, signed at
                    Washington, London, and Moscow on July 1, 1968.
                        ``(v) The term `non-nuclear-weapon state' has the
                    meaning given the term in section 830(5) of the Nuclear
                    Proliferation Prevention Act of 1994 (Public Law 103-
                    236; 108 Stat. 521).
                        ``(vi) The term `nuclear explosive device' has the
                    meaning given the term in section 830(4) of the Nuclear
                    Proliferation Prevention Act of 1994 (Public Law 103-
                    236; 108 Stat. 521).
                        ``(vii) The term `unsafeguarded special nuclear
                    material' has the meaning given the term in section
                    830(8) of the Nuclear Proliferation Prevention Act of
                    1994.''.

        (b) Recommendations To Make Nonproliferation Laws More Effective.--
    Not <<NOTE: President.>> later than 180 days after the date of the
    enactment of this Act, the President shall submit to the Congress his
    recommendations on ways to make the laws of the United States more
    effective in controlling and preventing the proliferation of weapons of
    mass destruction and missiles. The report shall identify all sources of
    Government funds used for such nonproliferation activities.
    SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO
                              HUMANITARIAN AND CIVIC ASSISTANCE FOR
                              CLEARANCE OF LANDMINES.

        (a) Authority To Pay Expenses.--Section 401(c) of title 10, United
    States Code, is amended--
                (1) by redesignating paragraph (2) as paragraph (4); and
                (2) by inserting after paragraph (1) the following new
            paragraphs:

        ``(2) Expenses covered by paragraph (1) include the following
    expenses incurred in providing assistance described in subsection
    (e)(5):
                ``(A) Travel, transportation, and subsistence expenses of
            Department of Defense personnel providing such assistance.
                ``(B) The cost of any equipment, services, or supplies
            acquired for the purpose of carrying out or supporting the

    [[Page 110 STAT. 2705]]

            activities described in subsection (e)(5), including any
            nonlethal, individual, or small-team landmine clearing equipment
            or supplies that are to be transferred or otherwise furnished to
            a foreign country in furtherance of the provision of assistance
            under this section.

        ``(3) The cost of equipment, services, and supplies provided in any
    fiscal year under paragraph (2)(B) may not exceed $5,000,000.''.
        (b) Coordination With Other Laws.--Section 401(b) of such title is
    amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following:

        ``(2) Any authority provided under any other provision of law to
    provide assistance that is described in subsection (e)(5) to a foreign
    country shall be carried out in accordance with, and subject to, the
    limitations prescribed in this section. Any such provision may be
    construed as superseding a provision of this section only if, and to the
    extent that, such provision specifically refers to this section and
    specifically identifies the provision of this section that is to be
    considered superseded or otherwise inapplicable under such provision.''.
    SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE'S
                              REPUBLIC OF CHINA.

        (a) Report.--The Secretary of Defense shall prepare a report, in
    both classified and unclassified form, on the future pattern of military
    modernization of the People's Republic of China. The report shall
    address both the probable course of military-technological development
    in the People's Liberation Army and the
    development of Chinese military strategy and operational concepts.
        (b) Matters To Be Included.--The report shall include analyses and
    forecasts of the following:
                (1) Trends that would lead the People's Republic of China
            toward advanced intelligence, surveillance, and reconnaissance
            capabilities, either through a development program or by gaining
            access to commercial or third-party systems with militarily
            significant capabilities.
                (2) Efforts by the People's Republic of China to develop
            highly accurate and low-observable ballistic and cruise
            missiles, and the investments in infrastructure that would allow
            for production of such weapons in militarily significant
            quantities, particularly in numbers sufficient to conduct
            attacks capable of overwhelming projected defense capabilities
            in the region.
                (3) Development by the People's Republic of China of
            enhanced command and control networks, particularly those
            capable of battle management that would include long-range
            precision strikes.
                (4) Programs of the People's Republic of China involving
            unmanned aerial vehicles, particularly those with extended
            ranges or loitering times.
                (5) Exploitation by the People's Republic of China of the
            Global Positioning System or other similar systems, including
            commercial land surveillance satellites, for significant
            military purposes, including particularly for increasing the
            accuracy of weapons or the situational awareness of operating
            forces.

    [[Page 110 STAT. 2706]]

                (6) Development by the People's Republic of China of
            capabilities for denial of sea control, such as advanced sea
            mines or improved submarine capabilities.
                (7) Continued development by the People's Republic of China
            of follow-on forces, particularly those capable of rapid air or
            amphibious assault.

        (c) Submission of Report.--The report shall be submitted to Congress
    not later than February 1, 1997.
    SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND
                              POLICIES OF THE PEOPLE'S REPUBLIC OF
                              CHINA.

        (a) Findings.--The Congress finds that--
                (1) the People's Republic of China acceded to the Treaty on
            the Non-Proliferation of Nuclear Weapons (hereafter in this
            section referred to as the ``NPT'') on March 9, 1992;
                (2) the People's Republic of China is not a member of the
            Nuclear Suppliers Group and remains the only major nuclear
            supplier that continues to transfer nuclear technology,
            equipment, and materials to countries that have not agreed to
            the application of safeguards of the International Atomic Energy
            Agency (hereafter in this section referred to as the ``IAEA'')
            over all of their nuclear materials;
                (3) on June 30, 1995, the United States and 29 other members
            of the Nuclear Suppliers Group notified the Director General of
            the IAEA that the Government of each respective country has
            decided that the controls of that
    Group should not be defeated by the transfer of component parts;
                (4) a state-owned entity in the People's Republic of China,
            the China Nuclear Energy Industry Corporation, has knowingly
            transferred specially designed ring magnets to an unsafeguarded
            uranium enrichment facility in the Islamic Republic of Pakistan;
                (5) ring magnets are identified on the Trigger List of the
            Nuclear Suppliers Group as a component of magnetic suspension
            bearings which are to be exported only to countries that have
            safeguards of the IAEA over all of their nuclear materials;
                (6) these ring magnets could contribute significantly to the
            ability of the Islamic Republic of Pakistan to produce
            additional unsafeguarded enriched uranium, a nuclear explosive
            material;
                (7) the Government of the People's Republic of China has
            transferred nuclear equipment and technology to the Islamic
            Republic of Iran, despite repeated claims by the Government of
            the United States that the Islamic Republic of Iran is engaged
            in clandestine efforts to acquire a nuclear explosive device;
                (8) representatives of the Government of the People's
            Republic of China have repeatedly assured the Government of the
            United States that the People's Republic of China would abide by
            the guidelines of the Missile Technology Control Regime
            (hereafter in this section referred to as the ``MTCR'');
                (9) the Government of China has transferred M-11 missiles to
            the Islamic Republic of Pakistan; and
                (10) the M-11 missile conforms to the definition of a
            nuclear-capable missile under the MTCR.

        (b) Sense of the Congress.--It is the sense of the
    Congress that--

    [[Page 110 STAT. 2707]]

                (1) the assistance that the People's Republic of China has
            provided to the Islamic Republic of Iran and to the Islamic
            Republic of Pakistan could contribute to the ability of such
            countries to manufacture nuclear weapons;
                (2) the recent transfer by the People's Republic of China of
            ring magnets to an unsafeguarded uranium enrichment facility in
            the Islamic Republic of Pakistan conflicts with China's
            obligations under Articles I and III of the NPT, as well as the
            official nonproliferation policies and assurances by the
            People's Republic of China and the Islamic Republic of Pakistan
            with respect to the nonproliferation of nuclear weapons and
            nuclear-capable missiles;
                (3) the transfer of M-11 missiles from the People's Republic
            of China to the Islamic Republic of Pakistan is inconsistent
            with longstanding United States Government interpretations of
            assurances from the Government of the People's Republic of China
            with respect to that country's intent to abide by the guidelines
            of the MTCR;
                (4) violations by the People's Republic of China of the
            standards and objectives of the MTCR and global nuclear
            nonproliferation regimes have jeopardized the credibility of the
            MTCR and such regimes;
                (5) the MTCR and global nuclear nonproliferation regimes
            require collective international action to impose costs against
            and to withhold benefits from any country, including the
            People's Republic of China, that engages in activities that are
            contrary to the objectives of those regimes;
                (6) the President should explore with the governments of
            other countries new opportunities for collective action in
            response to activities of any country, including the People's
            Republic of China, that aid or abet the global proliferation of
            weapons of mass destruction or their means of delivery; and
                (7) the President should communicate to the Government of
            the People's Republic of China the sense of the Congress that
            the stability and growth of future relations between the people,
            the economies, and the Governments of the United States and the
            People's Republic of China will
    significantly depend upon substantive evidence of cooperation by the
    Government of the People's Republic of China in efforts to halt the
    global proliferation of weapons of mass destruction and their means of
    delivery.

        (c) Report.--Not later than 60 days after the date of the enactment
    of this Act, the President shall submit to the Congress a report, in
    both classified and unclassified form, concerning the transfer from the
    People's Republic of China to the Islamic Republic of Pakistan of
    technology, equipment, or materials important to the production of
    nuclear weapons and their means of delivery. The President shall include
    in the report the following:
                (1) The specific justification of the Secretary of State for
            determining that there was not a sufficient basis for imposing
            sanctions under section 2(b)(4) of the Export-Import Bank Act of
            1945, as amended by section 825 of the Nuclear Proliferation
            Prevention Act of 1994, by reason of the transfer of ring
            magnets and other technology, equipment, or materials from the
            People's Republic of China to the Islamic Republic of Pakistan.

    [[Page 110 STAT. 2708]]

                (2) What commitment the United States Government is seeking
            from the People's Republic of China to ensure that the People's
            Republic of China establishes a fully effective export control
            system that will prevent transfers (such as the Pakistan sale)
            from taking place in the future.
                (3) A description of the pledges, assurances, and other
            commitments made by representatives of the Governments of the
            People's Republic of China and the Islamic Republic of Pakistan
            to the Government of the United States since January 1, 1991,
            with respect to the nonproliferation of nuclear weapons or
            nuclear-capable missiles, and an assessment of the record of
            compliance with such undertakings.
                (4) Whether, in light of the recent assurances provided by
            the People's Republic of China, the President intends to make
            the certification and submit the report required by section
            902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal
            Years 1990 and 1991 (22 U.S.C. 2151 note), and make the
            certification and submit the report required by Public Law 99-
            183, relating to the approval and implementation of the
            agreement for nuclear cooperation between the United States and
            the People's Republic of China, and, if not, why not.
                (5) Whether the Secretary of State considers the recent
            assurances and clarifications provided by the People's Republic
            of China to have provided sufficient information to allow the
            United States to determine that the People's Republic of China
            is not in violation of paragraph (2) of section 129 of the
            Atomic Energy Act of 1954, as required by Public Law 99-183.
                (6) If the President is unable or unwilling to make the
            certifications and reports referred to in paragraph (4), a
            description of what the President considers to be the
            significance of the clarifications and assurances provided by
            the People's Republic of China in the course of the recent
            discussions regarding the transfer by the People's Republic of
            China of nuclear-weapon-related equipment to the Islamic
            Republic of Pakistan.
                (7) A description of the laws, regulations, and procedures
            currently used by the People's Republic of China to regulate
            exports of nuclear technology, equipment, or materials,
            including dual-use goods, and an assessment of the effectiveness
            of such arrangements.
                (8) A description of the current policies and practices of
            other countries in response to the transfer of nuclear and
            missile technology by the People's Republic of China to the
            Islamic Republic of Pakistan and the Islamic Republic of Iran.
    SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE
                              CONVERSION COMMISSION.

        None of the funds appropriated or otherwise available for the
    Department of Defense for fiscal year 1997 or any prior fiscal year may
    be obligated or expended for any activity associated with the United
    States-People's Republic of China Joint
    Defense Conversion Commission until 15 days after the date on which the
    first semiannual report required by section 1343 of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    487) is received by Congress.

    SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

        (a) Findings.--The Congress makes the following findings:

    [[Page 110 STAT. 2709]]

                (1) Export controls are a part of a comprehensive response
            to national security threats. The export of a United States
            commodity or technology should be restricted in cases in which
            the export of the commodity or technology would increase the
            threat to the national security of the United States or would be
            contrary to the nonproliferation goals or foreign policy
            interests of the United States.
                (2) The export of certain commodities and technology may
            adversely affect the national security and foreign policy of the
            United States by making a significant contribution to the
            military potential of countries or by enhancing the capability
            of countries to design, develop, test, produce, stockpile, or
            use weapons of mass destruction and missile delivery systems,
            and other significant military capabilities. Therefore, the
            administration of export controls should emphasize the control
            of these exports.
                (3) The acquisition of sensitive commodities and
            technologies by those countries and end users whose actions or
            policies run counter to United States national security or
            foreign policy interests may enhance the military capabilities
            of those countries, particularly their ability to design,
            develop, test, produce, stockpile, use, and deliver nuclear,
            chemical, and biological weapons and missile delivery systems,
            and other significant military capabilities. This enhancement
            threatens the security of the United States and its allies. The
            availability to countries and end users of items that contribute
            to military capabilities or the proliferation of weapons of mass
            destruction is a fundamental concern of the United States and
            should be eliminated through deterrence, negotiations, and other
            appropriate means whenever possible.
                (4) The national security of the United States depends not
            only on wise foreign policies and a strong defense, but also a
            vibrant national economy. To be truly effective, export controls
            should be applied uniformly by all suppliers.
                (5) On November 8, 1995, the President continued the
            national emergency declared in Executive Order No. 12938 of
            November 14, 1994, ``with respect to the unusual and
            extraordinary threat to the national security, foreign policy,
            and
            economy of the United States posed by the proliferation of
            nuclear, biological, and chemical weapons and the means of
            delivering such weapons''.
                (6) A successor regime to COCOM (the Coordinating Committee
            for Multilateral Export Controls) has not been established.
            Currently, each nation is determining independently which dual-
            use military items, if any, will be controlled for export.
                (7) The United States should play a leading role in
            promoting transparency and responsibility with regard to the
            transfers of sensitive dual-use goods and technologies.

        (b) Sense of Congress.--It is the sense of the Congress that--
                (1) establishing an international export control regime,
            empowered to control exports of dual-use technology, is
            critically important and should be a top priority for the United
            States; and
                (2) the United States should strongly encourage its allies
            and other friendly countries to--

    [[Page 110 STAT. 2710]]

                        (A) adopt export controls that are the same or
                    similar to the export controls imposed by the United
                    States on items on the Commerce Control List;
                        (B) strengthen enforcement of their export
                    controls; and
                        (C) explore the use of unilateral export controls
                    where the possibility exists that an export could
                    contribute to the enhancement of military capabilities
                    or
    proliferation described in paragraphs (3) and (5) of subsection (a).

    SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

        (a) Composition of the Committee.--Subsection (a) of section 1605 of
    the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C.
    2751 note) is amended by adding at the end the following new paragraph:
        ``(5) The Assistant to the Secretary of Defense for Nuclear and
    Chemical and Biological Defense Programs shall serve as executive
    secretary to the committee.''.
        (b) Additional Purpose of the Committee.--Subsection (b)(1)(A) of
    such section is amended by inserting ``and efforts, including efforts to
    stem the proliferation of weapons of mass destruction and to negate
    paramilitary and terrorist threats involving weapons of mass
    destruction'' after ``counterproliferation policy''.
        (c) Four-Year Extension of the Committee.--Subsection (f) of such
    section is amended by striking out ``September 30, 1996'' and inserting
    in lieu thereof ``September 30, 2000''.
        (d) Reports on Counterproliferation Activities and Programs.--
    Section 1503 of the National Defense Authorization Act for Fiscal Year
    1995 (22 U.S.C. 2751 note) is amended--
                (1) in subsection (a)--
                        (A) by striking out ``Report Required.--(1) Not
                    later than May 1, 1995 and May 1, 1996, the Secretary''
                    and inserting in lieu thereof ``Annual Report
                    Required.--Not later than May 1 of each year, the
                    Secretary''; and
                        (B) by striking out paragraph (2); and
                (2) by adding at the end the following new subsections:

        ``(d) Review Committee Charter Defined.--For purposes of this
    section, the term `Review Committee charter' means section 1605 of the
    National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751
    note).
        ``(e) Termination of Requirement.--The final report required under
    subsection (a) is the report for the year following the year in which
    the Counterproliferation Program Review Committee established under the
    Review Committee Charter ceases to exist.''.
    SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER COUNTRIES
                              TO IMPROVE SECURITY OF FISSILE
                              MATERIAL.

        (a) Findings.--Congress finds the following:
                (1) With the end of the Cold War, the world is faced with
            the need to manage the dismantling of vast numbers of nuclear
            weapons and the disposition of the fissile materials that they
            contain.
                (2) If recently agreed reductions in nuclear weapons are
            fully implemented, tens of thousands of nuclear weapons,
            containing a hundred tons or more of plutonium and many hundreds
            of tons of highly enriched uranium, will no longer be needed for
            military purposes.

    [[Page 110 STAT. 2711]]

                (3) Plutonium and highly enriched uranium are the essential
            ingredients of nuclear weapons.
                (4) Limits on access to plutonium and highly enriched
            uranium are the primary technical barrier to acquiring nuclear
            weapons capability in the world today.
                (5) Several kilograms of plutonium, or several times that
            amount of highly enriched uranium, are sufficient to make a
            nuclear weapon.
                (6) Plutonium and highly enriched uranium will continue to
            pose a potential threat for as long as they exist.
                (7) Action is required to secure and account for plutonium
            and highly enriched uranium.
                (8) It is in the national interest of the United States to--
                        (A) minimize the risk that fissile materials could
                    be obtained by unauthorized parties;
                        (B) minimize the risk that fissile materials could
                    be reintroduced into the arsenals from which they came,
                    halting or reversing the arms reduction process; and
                        (C) strengthen the national and international
                    control mechanisms and incentives designed to ensure
                    continued arms reductions and prevent the spread of
                    nuclear
                    weapons.

        (b) Sense of Congress.--In light of the findings contained in
    subsection (a), it is the sense of Congress that the United States has a
    national security interest in assisting other countries to improve the
    security of their stocks of fissile material.
    SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF NATIONAL
                              INTELLIGENCE ESTIMATE 95-19.

        (a) Review.--The Director of Central Intelligence shall conduct a
    review of the underlying assumptions and conclusions of the National
    Intelligence Estimate designated as NIE 95-19 and
    entitled ``Emerging Missile Threats to North America During the Next 15
    Years'', released by the Director in November 1995.
        (b) Methodology for Review.--The Director shall carry out the review
    under subsection (a) through a panel of independent, nongovernmental
    individuals with appropriate expertise and experience. Such a panel
    shall be convened by the Director not later than 45 days after the date
    of the enactment of this Act.
        (c) Report.--The Director shall submit the findings resulting from
    the review under subsection (a), together with any comments of the
    Director on the review and the findings, to Congress not later than
    three months after the appointment of the Commission under section 1321.

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

    SEC. 1321. ESTABLISHMENT OF COMMISSION.

        (a) Establishment.--There is hereby established a commission to be
    known as the ``Commission To Assess the Ballistic Missile Threat to the
    United States'' (hereafter in this subtitle referred to as the
    ``Commission'').
        (b) Composition.--The Commission shall be composed of nine members
    appointed by the Director of Central Intelligence. In select

    [[Page 110 STAT. 2712]]

    ing individuals for appointment to the Commission, the Director should
    consult with--
                (1) the Speaker of the House of Representatives concerning
            the appointment of three of the members of the Commission;
                (2) the majority leader of the Senate concerning the
            appointment of three of the members of the Commission; and
                (3) the minority leader of the House of Representatives and
            the minority leader of the Senate concerning the appointment of
            three of the members of the Commission.

        (c) Qualifications.--Members of the Commission shall be appointed
    from among private United States citizens with knowledge and expertise
    in the political and military aspects of proliferation of ballistic
    missiles and the ballistic missile threat to the United States.
        (d) Chairman.--The Speaker of the House of Representatives, after
    consultation with the majority leader of the Senate and the minority
    leaders of the House of Representatives and the Senate, shall designate
    one of the members of the Commission to serve as chairman of the
    Commission.
        (e) Period of Appointment; Vacancies.--Members shall be appointed
    for the life of the Commission. Any vacancy in the Commission shall be
    filled in the same manner as the original appointment.
        (f) Security Clearances.--All members of the Commission shall hold
    appropriate security clearances.
        (g) Initial Organization Requirements.--(1) All appointments to the
    Commission shall be made not later than 45 days after the date of the
    enactment of this Act.
        (2) The Commission shall convene its first meeting not later than 30
    days after the date as of which all members of the Commission have been
    appointed, but not earlier than October 15, 1996.

    SEC. 1322. DUTIES OF COMMISSION.

        (a) Review of Ballistic Missile Threat.--The Commission shall assess
    the nature and magnitude of the existing and emerging ballistic missile
    threat to the United States.
        (b) Cooperation From Government Officials.--In carrying out its
    duties, the Commission should receive the full and timely cooperation of
    the Secretary of Defense, the Director of Central Intelligence, and any
    other United States Government official responsible for providing the
    Commission with analyses, briefings, and other information necessary for
    the fulfillment of its respon-
    sibilities.

    SEC. 1323. REPORT.

        The Commission shall, not later than six months after the date of
    its first meeting, submit to the Congress a report on its findings and
    conclusions.

    SEC. 1324. POWERS.

        (a) Hearings.--The Commission or, at its direction, any panel or
    member of the Commission, may, for the purpose of carrying out the
    provisions of this subtitle, hold hearings, sit and act at times and
    places, take testimony, receive evidence, and administer oaths to the
    extent that the Commission or any panel or member considers advisable.
        (b) Information.--The Commission may secure directly from the
    Department of Defense, the Central Intelligence Agency, and

    [[Page 110 STAT. 2713]]

    any other Federal department or agency information that the Commission
    considers necessary to enable the Commission to carry out its
    responsibilities under this subtitle.

    SEC. 1325. COMMISSION PROCEDURES.

        (a) Meetings.--The Commission shall meet at the call of the
    Chairman.
        (b) Quorum.--(1) Five members of the Commission shall constitute a
    quorum other than for the purpose of holding hearings.
        (2) The Commission shall act by resolution agreed to by a majority
    of the members of the Commission.
        (c) Commission.--The Commission may establish panels composed of
    less than full membership of the Commission for the purpose of carrying
    out the Commission's duties. The actions of each such panel shall be
    subject to the review and control of the Commission. Any findings and
    determinations made by such a panel shall not be considered the findings
    and determinations of the Commission unless approved by the Commission.
        (d) Authority of Individuals To Act for Commission.--Any member or
    agent of the Commission may, if authorized by the Commission, take any
    action which the Commission is authorized to take under this subtitle.

    SEC. 1326. PERSONNEL MATTERS.

        (a) Pay of Members.--Members of the Commission shall serve without
    pay by reason of their work on the Commission.
        (b) Travel Expenses.--The members of the Commission shall be allowed
    travel expenses, including per diem in lieu of subsistence, at rates
    authorized for employees of agencies under subchapter I of chapter 57 of
    title 5, United States Code, while away from their homes or regular
    places of business in the performance of services for the Commission.
        (c) Staff.--(1) The chairman of the Commission may, without regard
    to the provisions of title 5, United States Code, governing appointments
    in the competitive service, appoint a staff director and such additional
    personnel as may be necessary to enable the Commission to perform its
    duties. The appointment of a staff director shall be subject to the
    approval of the Commission.
        (2) The chairman of the Commission may fix the pay of the staff
    director and other personnel without regard to the provisions of chapter
    51 and subchapter III of chapter 53 of title 5, United States Code,
    relating to classification of positions and General Schedule pay rates,
    except that the rate of pay fixed under this paragraph for the staff
    director may not exceed the rate payable for level V of the Executive
    Schedule under section 5316 of such title and the rate of pay for other
    personnel may not exceed the maximum rate payable for grade GS-15 of the
    General Schedule.
        (d) Detail of Government Employees.--Upon request of the chairman of
    the Commission, the head of any Federal department or agency may detail,
    on a nonreimbursable basis, any personnel of that department or agency
    to the Commission to assist it in carrying out its duties.
        (e) Procurement of Temporary and Intermittent Services.--The
    chairman of the Commission may procure temporary and intermittent
    services under section 3109(b) of title 5, United States Code, at rates
    for individuals which do not exceed the daily equivalent of the annual
    rate of basic pay payable for level V of the Executive Schedule under
    section 5316 of such title.

    [[Page 110 STAT. 2714]]

    SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

        (a) Postal and Printing Services.--The Commission may use the United
    States mails and obtain printing and binding services in the same manner
    and under the same conditions as other departments and agencies of the
    Federal Government.
        (b) Miscellaneous Administrative and Support Services.--The Director
    of Central Intelligence shall furnish the Commission, on a reimbursable
    basis, any administrative and support services requested by the
    Commission.

    SEC. 1328. FUNDING.

        Funds for activities of the Commission shall be provided from
    amounts appropriated for the Department of Defense for operation and
    maintenance for Defense-wide activities for fiscal year 1997. Upon
    receipt of a written certification from the Chairman of the Commission
    specifying the funds required for the activities of the Commission, the
    Secretary of Defense shall promptly disburse to the Commission, from
    such amounts, the funds required by the Commission as stated in such
    certification.

    SEC. 1329. TERMINATION OF THE COMMISSION.

        The Commission shall terminate 60 days after the date of the
    submission of its report under section 1323.

     TITLE XIV--DEFENSE <<NOTE: Defense Against Weapons of Mass Destruction
    Act of 1996.>> AGAINST WEAPONS OF MASS DESTRUCTION

    Sec. 1401. Short title.
    Sec. 1402. Findings.
    Sec. 1403. Definitions.

                        Subtitle A--Domestic Preparedness

    Sec. 1411. Response to threats of terrorist use of weapons of mass
               destruction.
    Sec. 1412. Emergency response assistance program.
    Sec. 1413. Nuclear, chemical, and biological emergency response.
    Sec. 1414. Chemical-biological emergency response team.
    Sec. 1415. Testing of preparedness for emergencies involving nuclear,
               radiological, chemical, and biological weapons.
    Sec. 1416. Military assistance to civilian law enforcement officials in
               emergency
               situations involving biological or chemical weapons.
    Sec. 1417. Rapid response information system.

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

    Sec. 1421. Procurement of detection equipment United States border
               security.
    Sec. 1422. Extension of coverage of International Emergency Economic
               Powers Act.
    Sec. 1423. Sense of Congress concerning criminal penalties.
    Sec. 1424. International border security.

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

    Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative
               Threat
               Reduction programs on elimination or transportation of
               nuclear
               weapons.
    Sec. 1432. Elimination of plutonium production.

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

    Sec. 1441. National Coordinator on Nonproliferation.
    Sec. 1442. National Security Council Committee on Nonproliferation.
    Sec. 1443. Comprehensive preparedness program.
    Sec. 1444. Termination.

    [[Page 110 STAT. 2715]]

                            Subtitle E--Miscellaneous

    Sec. 1451. Sense of Congress concerning contracting policy.
    Sec. 1452. Transfers of allocations among Cooperative Threat Reduction
               programs.
    Sec. 1453. Sense of Congress concerning assistance to states of former
               Soviet Union.
    Sec. 1454. Purchase of low-enriched uranium derived from Russian highly
               enriched uranium.
    Sec. 1455. Sense of Congress concerning purchase, packaging, and
               transportation of fissile materials at risk of theft.

    SEC. 1401. <<NOTE: 50 USC 2301 note.>> SHORT TITLE.

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

    SEC. 1402. <<NOTE: 50 USC 2301 note.>> FINDINGS.

        Congress makes the following findings:
                (1) Weapons of mass destruction and related materials and
            technologies are increasingly available from worldwide sources.
            Technical information relating to such weapons is readily
            available on the Internet, and raw materials for chemical,
            biological, and radiological weapons are widely available for
            legitimate commercial purposes.
                (2) The former Soviet Union produced and maintained a vast
            array of nuclear, biological, and chemical weapons of mass
            destruction.
                (3) Many of the states of the former Soviet Union retain the
            facilities, materials, and technologies capable of producing
            additional quantities of weapons of mass destruction.
                (4) The disintegration of the former Soviet Union was
            accompanied by disruptions of command and control systems,
            deficiencies in accountability for weapons, weapons-related
            materials and technologies, economic hardships, and significant
            gaps in border control among the states of the former Soviet
            Union. The problems of organized crime and corruption in the
            states of the former Soviet Union increase the potential for
            proliferation of nuclear, radiological, biological, and chemical
            weapons and related materials.
                (5) The conditions described in paragraph (4) have
            substantially increased the ability of potentially hostile
            nations, terrorist groups, and individuals to acquire weapons of
            mass destruction and related materials and technologies from
            within the states of the former Soviet Union and from unemployed
            scientists who worked on those programs.
                (6) As a result of such conditions, the capability of
            potentially hostile nations and terrorist groups to acquire
            nuclear, radiological, biological, and chemical weapons is
            greater than at any time in history.
                (7) The President has identified North Korea, Iraq, Iran,
            and Libya as hostile states which already possess some weapons
            of mass destruction and are developing others.
                (8) The acquisition or the development and use of weapons of
            mass destruction is well within the capability of many extremist
            and terrorist movements, acting independently or as proxies for
            foreign states.
                (9) Foreign states can transfer weapons to or otherwise aid
            extremist and terrorist movements indirectly and with plausible
            deniability.

    [[Page 110 STAT. 2716]]

                (10) Terrorist groups have already conducted chemical
            attacks against civilian targets in the United States and Japan,
            and a radiological attack in Russia.
                (11) The potential for the national security of the United
            States to be threatened by nuclear, radiological, chemical, or
            biological terrorism must be taken seriously.
                (12) There is a significant and growing threat of attack by
            weapons of mass destruction on targets that are not military
            targets in the usual sense of the term.
                (13) Concomitantly, the threat posed to the citizens of the
            United States by nuclear, radiological, biological, and chemical
            weapons delivered by unconventional means is significant and
            growing.
                (14) Mass terror may result from terrorist incidents
            involving nuclear, radiological, biological, or chemical
            materials.
                (15) Facilities required for production of radiological,
            biological, and chemical weapons are much smaller and harder to
            detect than nuclear weapons facilities, and biological and
            chemical weapons can be deployed by alternative delivery means
            other than long-range ballistic missiles.
                (16) Covert or unconventional means of delivery of nuclear,
            radiological, biological, and chemical weapons include cargo
            ships, passenger aircraft, commercial and private vehicles and
            vessels, and commercial cargo shipments routed through
            multiple destinations.
                (17) Traditional arms control efforts assume large state
            efforts with detectable manufacturing programs and weapons
            production programs, but are ineffective in monitoring and
            controlling smaller, though potentially more dangerous,
            unconventional proliferation efforts.
                (18) Conventional counterproliferation efforts would do
            little to detect or prevent the rapid development of a
            capability to suddenly manufacture several hundred chemical or
            biological weapons with nothing but commercial supplies and
            equipment.
                (19) The United States lacks adequate planning and
            countermeasures to address the threat of nuclear, radiological,
            biological, and chemical terrorism.
                (20) The Department of Energy has established a Nuclear
            Emergency Response Team which is available in case of nuclear or
            radiological emergencies, but no comparable units exist to deal
            with emergencies involving biological or chemical weapons or
            related materials.
                (21) State and local emergency response personnel are not
            adequately prepared or trained for incidents involving nuclear,
            radiological, biological, or chemical materials.
                (22) Exercises of the Federal, State, and local response to
            nuclear, radiological, biological, or chemical terrorism have
            revealed serious deficiencies in preparedness and severe
            problems of coordination.
                (23) The development of, and allocation of responsibilities
            for, effective countermeasures to nuclear, radiological,
            biological, or chemical terrorism in the United States requires
            well-coordinated participation of many Federal agencies, and
            careful planning by the Federal Government and State and local
            governments.
                (24) Training and exercises can significantly improve the
            preparedness of State and local emergency response personnel

    [[Page 110 STAT. 2717]]

            for emergencies involving nuclear, radiological, biological, or
            chemical weapons or related materials.
                (25) Sharing of the expertise and capabilities of the
            Department of Defense, which traditionally has provided
            assistance to Federal, State, and local officials in
            neutralizing, dis-
            mantling, and disposing of explosive ordnance, as well as
            radiological, biological, and chemical materials, can be a vital

            contribution to the development and deployment of
            countermeasures against nuclear, biological, and chemical
            weapons of mass destruction.
                (26) The United States lacks effective policy coordination
            regarding the threat posed by the proliferation of weapons of
            mass destruction.

    SEC. 1403. <<NOTE: 50 USC 2302.>> DEFINITIONS.

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

                        Subtitle A--Domestic Preparedness

    SEC. 1411. RESPONSE <<NOTE: President. 50 USC 2311.>> TO THREATS
                              OF TERRORIST USE OF WEAPONS OF MASS
                              DESTRUCTION.

        (a) Enhanced Response Capability.--In light of the potential for
    terrorist use of weapons of mass destruction against the United States,
    the President shall take immediate action--
                (1) to enhance the capability of the Federal Government to
            prevent and respond to terrorist incidents involving weapons of
            mass destruction; and
                (2) to provide enhanced support to improve the capabilities
            of State and local emergency response agencies to prevent and
            respond to such incidents at both the national and the local
            level.

        (b) Report Required.--Not later than January 31, 1997, the President
    shall transmit to Congress a report containing--
                (1) an assessment of the capabilities of the Federal
            Government to prevent and respond to terrorist incidents
            involving weapons of mass destruction and to support State and
            local prevention and response efforts;
                (2) requirements for improvements in those cap-
            abilities; and
                (3) the measures that should be taken to achieve such
            improvements, including additional resources and legislative
            authorities that would be required.

    [[Page 110 STAT. 2718]]

    SEC. 1412. <<NOTE: 50 USC 2312.>> EMERGENCY RESPONSE ASSISTANCE PROGRAM.

        (a) Program Required.--(1) The Secretary of Defense shall carry out
    a program to provide civilian personnel of Federal, State, and local
    agencies with training and expert advice regarding emergency responses
    to a use or threatened use of a weapon of mass destruction or related
    materials.
        (2) The President may designate the head of an agency other than the
    Department of Defense to assume the responsibility for carrying out the
    program on or after October 1, 1999, and relieve the Secretary of
    Defense of that responsibility upon the assumption of the responsibility
    by the designated official.
        (3) In this section, the official responsible for carrying out the
    program is referred to as the ``lead official''.
        (b) Coordination.--In carrying out the program, the lead official
    shall coordinate with each of the following officials who is not serving
    as the lead official:
                (1) The Director of the Federal Emergency Management Agency.
                (2) The Secretary of Energy.
                (3) The Secretary of Defense.
                (4) The heads of any other Federal, State, and local
            government agencies that have an expertise or responsibilities
            relevant to emergency responses described in subsection (a)(1).

        (c) Eligible Participants.--The civilian personnel eligible to
    receive assistance under the program are civilian personnel of Federal,
    State, and local agencies who have emergency preparedness
    responsibilities.
        (d) Involvement of Other Federal Agencies.--(1) The lead official
    may use personnel and capabilities of Federal agencies outside the
    agency of the lead official to provide training and expert advice under
    the program.
        (2)(A) Personnel used under paragraph (1) shall be personnel who
    have special skills relevant to the particular assistance that the
    personnel are to provide.
        (B) Capabilities used under paragraph (1) shall be capabilities that
    are especially relevant to the particular assistance for which the
    capabilities are used.
        (3) If the lead official is not the Secretary of Defense, and
    requests assistance from the Department of Defense that, in the judgment
    of the Secretary of Defense would affect military readiness or adversely
    affect national security, the Secretary of Defense may appeal the
    request for Department of Defense assistance by the lead official to the
    President.
        (e) Available Assistance.--Assistance available under this program
    shall include the following:
                (1) Training in the use, operation, and maintenance of
            equipment for--
                        (A) detecting a chemical or biological agent or
                    nuclear radiation;
                        (B) monitoring the presence of such an agent or
                    radiation;
                        (C) protecting emergency personnel and the
                    public; and
                        (D) decontamination.
                (2) Establishment of a designated telephonic link (commonly
            referred to as a ``hot line'') to a designated source of
            relevant data and expert advice for the use of State or local

    [[Page 110 STAT. 2719]]

            officials responding to emergencies involving a weapon of mass
            destruction or related materials.
                (3) Use of the National Guard and other reserve components
            for purposes authorized under this section that are specified by
            the lead official (with the concurrence of the Secretary of
            Defense if the Secretary is not the lead official).
                (4) Loan of appropriate equipment.

        (f) Limitations on Department of Defense Assistance to Law
    Enforcement Agencies.--Assistance provided by the Department of Defense
    to law enforcement agencies under this section shall be provided under
    the authority of, and subject to the restrictions provided in, chapter
    18 of title 10, United States Code.
        (g) Administration of Department of Defense Assistance.--The
    Secretary of Defense shall designate an official within the Department
    of Defense to serve as the executive agent of the Secretary for the
    coordination of the provision of Department of Defense assistance under
    this section.
        (h) Funding.--(1) Of the total amount authorized to be appropriated
    under section 301, $35,000,000 is available for the program required
    under this section.
        (2) Of the amount available for the program pursuant to paragraph
    (1), $10,500,000 is available for use by the Secretary of Defense to
    assist the Secretary of Health and Human Services in the establishment
    of metropolitan emergency medical response teams (commonly referred to
    as ``Metropolitan Medical Strike Force Teams'') to provide medical
    services that are necessary or potentially necessary by reason of a use
    or threatened use of a weapon of mass destruction.
        (3) The amount available for the program under paragraph (1) is in
    addition to any other amounts authorized to be appropriated for the
    program under section 301.
    SEC. 1413. NUCLEAR, <<NOTE: 50 USC 2313.>> CHEMICAL, AND
                              BIOLOGICAL EMERGENCY RESPONSE.

        (a) Department of Defense.--The Secretary of Defense shall designate
    an official within the Department of Defense as the executive agent
    for--
                (1) the coordination of Department of Defense assistance to
            Federal, State, and local officials in responding to threats
            involving biological or chemical weapons or related materials or
            technologies, including assistance in identifying, neutralizing,
            dismantling, and disposing of biological and chemical
            weapons and related materials and technologies; and
                (2) the coordination of Department of Defense assistance to
            the Department of Energy in carrying out that department's
            responsibilities under subsection (b).

        (b) Department of Energy.--The Secretary of Energy shall designate
    an official within the Department of Energy as the executive agent for--
                (1) the coordination of Department of Energy assistance to
            Federal, State, and local officials in responding to threats
            involving nuclear, chemical, and biological weapons or related
            materials or technologies, including assistance in identifying,
            neutralizing, dismantling, and disposing of nuclear weapons and
            related materials and technologies; and

    [[Page 110 STAT. 2720]]

                (2) the coordination of Department of Energy assistance to
            the Department of Defense in carrying out that department's
            responsibilities under subsection (a).

        (c) Funding.--Of the total amount authorized to be appropriated
    under section 301, $15,000,000 is available for providing assistance
    described in subsection (a).
    SEC. 1414. CHEMICAL-BIOLOGICAL <<NOTE: 50 USC 2314.>> EMERGENCY
                              RESPONSE TEAM.

        (a) Department of Defense Rapid Response Team.--The Secretary of
    Defense shall develop and maintain at least one domestic terrorism rapid
    response team composed of members of the Armed Forces and employees of
    the Department of Defense who are capable of aiding Federal, State, and
    local officials in the detection, neutralization, containment,
    dismantlement, and disposal of weapons of mass destruction containing
    chemical, biological, or related materials.
        (b) Addition to Federal Response Plan.--Not later than December 31,
    1997, the Director of the Federal Emergency Management Agency shall
    develop and incorporate into existing Federal emergency response plans
    and programs prepared under section 611(b) of the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b))
    guidance on the use and deployment of the rapid response teams
    established under this section to respond to emergencies involving
    weapons of mass destruction. The Director shall carry out this
    subsection in consultation with the Secretary of Defense and the heads
    of other Federal agencies involved with the emergency response plans.
    SEC. 1415. TESTING <<NOTE: 50 USC 2315.>> OF PREPAREDNESS FOR
                              EMERGENCIES
                              INVOLVING NUCLEAR, RADIOLOGICAL,
                              CHEMICAL, AND BIOLOGICAL WEAPONS.

        (a) Emergencies Involving Chemical or Biological Weapons.--(1) The
    Secretary of Defense shall develop and carry out a program for testing
    and improving the responses of Federal, State, and local agencies to
    emergencies involving biological weapons and related materials and
    emergencies involving chemical
    weapons and related materials.
        (2) The program shall include exercises to be carried out during
    each of five successive fiscal years beginning with fiscal year 1997.
        (3) In developing and carrying out the program, the Secretary shall
    coordinate with the Director of the Federal Bureau of Investigation, the
    Director of the Federal Emergency Management Agency, the Secretary of
    Energy, and the heads of any other Federal, State, and local government
    agencies that have an expertise or responsibilities relevant to
    emergencies described in paragraph (1).
        (b) Emergencies Involving Nuclear and Radiological Weapons.--(1) The
    Secretary of Energy shall develop and carry out a program for testing
    and improving the responses of Federal, State, and local agencies to
    emergencies involving nuclear and radiological weapons and related
    materials.
        (2) The program shall include exercises to be carried out during
    each of five successive fiscal years beginning with fiscal year 1997.
        (3) In developing and carrying out the program, the Secretary shall
    coordinate with the Director of the Federal Bureau of Investigation, the
    Director of the Federal Emergency Management Agency, the Secretary of
    Defense, and the heads of any other Federal, State, and local government
    agencies that have an exper

    [[Page 110 STAT. 2721]]

    tise or responsibilities relevant to emergencies described in paragraph
    (1).
        (c) Annual Revisions of Programs.--The official responsible for
    carrying out a program developed under subsection (a) or (b) shall
    revise the program not later than June 1 in each fiscal year covered by
    the program. The revisions shall include adjustments that the official
    determines necessary or appropriate on the basis of the lessons learned
    from the exercise or exercises carried out under the program in the
    fiscal year, including lessons learned regarding coordination problems
    and equipment deficiencies.
        (d) Option To Transfer Responsibility.--(1) The President may
    designate the head of an agency outside the Department of Defense to
    assume the responsibility for carrying out the program developed under
    subsection (a) beginning on or after October 1, 1999, and relieve the
    Secretary of Defense of that responsibility upon the assumption of the
    responsibility by the designated official.
        (2) The President may designate the head of an agency outside the
    Department of Energy to assume the responsibility for carrying out the
    program developed under subsection (b) beginning on or after October 1,
    1999, and relieve the Secretary of Energy of that responsibility upon
    the assumption of the responsibility by the designated official.
        (e) Funding.--Of the total amount authorized to be
    appropriated under section 301, $15,000,000 is available for the
    development and execution of the programs required by this section,
    including the participation of State and local agencies in exercises
    carried out under the programs.
    SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT
                              OFFICIALS IN EMERGENCY SITUATIONS
                              INVOLVING BIOLOGICAL OR CHEMICAL
                              WEAPONS.

        (a) Assistance Authorized.--(1) Chapter 18 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 382. Emergency situations involving chemical or biological
                      weapons of mass destruction

        ``(a) In General.--The Secretary of Defense, upon the request of the
    Attorney General, may provide assistance in support of Department of
    Justice activities relating to the enforcement of section 175 or 2332c
    of title 18 during an emergency situation involving a biological or
    chemical weapon of mass destruction. Department of Defense resources,
    including personnel of the Department of Defense, may be used to provide
    such assistance if--
                ``(1) the Secretary of Defense and the Attorney General
            jointly determine that an emergency situation exists; and
                ``(2) the Secretary of Defense determines that the provision
            of such assistance will not adversely affect the military
            preparedness of the United States.

        ``(b) Emergency Situations Covered.--In this section, the term
    `emergency situation involving a biological or chemical weapon of mass
    destruction' means a circumstance involving a biological or chemical
    weapon of mass destruction--
                ``(1) that poses a serious threat to the interests of the
            United States; and
                ``(2) in which--

    [[Page 110 STAT. 2722]]

                        ``(A) civilian expertise and capabilities are not
                    readily available to provide the required assistance to
                    counter the threat immediately posed by the weapon
                    involved;
                        ``(B) special capabilities and expertise of the
                    Department of Defense are necessary and critical to
                    counter the threat posed by the weapon involved; and
                        ``(C) enforcement of section 175 or 2332c of title
                    18 would be seriously impaired if the Department of
                    Defense assistance were not provided.

        ``(c) Forms of Assistance.--The assistance referred to in subsection
    (a) includes the operation of equipment (including equipment made
    available under section 372 of this title) to monitor, contain, disable,
    or dispose of the weapon involved or elements of the weapon.
        ``(d) Regulations.--(1) The Secretary of Defense and the Attorney
    General shall jointly prescribe regulations concerning the types of
    assistance that may be provided under this section. Such regulations
    shall also describe the actions that Department of Defense personnel may
    take in circumstances incident to the provision of assistance under this
    section.
        ``(2)(A) Except as provided in subparagraph (B), the regulations may
    not authorize the following actions:
                ``(i) Arrest.
                ``(ii) Any direct participation in conducting a search for
            or seizure of evidence related to a violation of section
            175 or 2332c of title 18.
                ``(iii) Any direct participation in the collection of
            intelligence for law enforcement purposes.

        ``(B) The regulations may authorize an action described in
    subparagraph (A) to be taken under the following conditions:
                ``(i) The action is considered necessary for the immediate
            protection of human life, and civilian law enforcement officials
            are not capable of taking the action.
                ``(ii) The action is otherwise authorized under subsection
            (c) or under otherwise applicable law.

        ``(e) Reimbursements.--The Secretary of Defense shall require
    reimbursement as a condition for providing assistance under this section
    to the extent required under section 377 of this title.
        ``(f) Delegations of Authority.--(1) Except to the extent otherwise
    provided by the Secretary of Defense, the Deputy Secretary of Defense
    may exercise the authority of the Secretary of Defense under this
    section. The Secretary of Defense may delegate the Secretary's authority
    under this section only to an Under Secretary of Defense or an Assistant
    Secretary of Defense and only if the Under Secretary or Assistant
    Secretary to whom delegated has been designated by the Secretary to act
    for, and to exercise the general powers of, the Secretary.
        ``(2) Except to the extent otherwise provided by the Attorney
    General, the Deputy Attorney General may exercise the authority of the
    Attorney General under this section. The Attorney General may delegate
    that authority only to the Associate Attorney General or an Assistant
    Attorney General and only if the Associate Attorney General or Assistant
    Attorney General to whom delegated has been designated by the Attorney
    General to act for, and to exercise the general powers of, the Attorney
    General.
        ``(g) Relationship to Other Authority.--Nothing in this section
    shall be construed to restrict any executive branch authority

    [[Page 110 STAT. 2723]]

    regarding use of members of the armed forces or equipment of the
    Department of Defense that was in effect before the date of the
    enactment of the National Defense Authorization Act for Fiscal Year
    1997.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

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

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

        (c) Conforming Amendments Relating to Authority To Request
    Assistance.--(1)(A) Chapter 10 of title 18, United States Code, is
    amended by inserting after section 175 the following new section:
    ``Sec. 175a. Requests for military assistance to enforce
                        prohibition in certain emergencies

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

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

        (2)(A) The chapter 133B of title 18, United States Code, that
    relates to terrorism is amended by inserting after section 2332c the
    following new section:
    ``Sec. 2332d. Requests for military assistance to enforce
                          prohibition in certain emergencies

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

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

        (d) Civilian <<NOTE: President. 50 USC 2316.>> Expertise.--The
    President shall take reasonable measures to reduce the reliance of
    civilian law enforcement officials on Department of Defense resources to
    counter the threat posed by the use or potential use of biological and
    chemical weapons

    [[Page 110 STAT. 2724]]

    of mass destruction within the United States. The measures shall
    include--
                (1) actions to increase civilian law enforcement expertise
            to counter such a threat; and
                (2) actions to improve coordination between civilian law
            enforcement officials and other civilian sources of expertise,
            within and outside the Federal Government, to counter such a
            threat.

        (e) Reports.--The <<NOTE: 50 USC 2316.>> President shall submit to
    Congress the following reports:
                (1) Not later than 90 days after the date of the enactment
            of this Act, a report describing the respective policy functions
            and operational roles of Federal agencies in countering the
            threat posed by the use or potential use of biological and
            chemical weapons of mass destruction within the United States.
                (2) Not later than one year after such date, a report
            describing--
                        (A) the actions planned to be taken to carry out
                    subsection (d); and
                        (B) the costs of such actions.
                (3) Not later than three years after such date, a report
            updating the information provided in the reports submitted
            pursuant to paragraphs (1) and (2), including the measures taken
            pursuant to subsection (d).

    SEC. 1417. <<NOTE: 50 USC 2317.>> RAPID RESPONSE INFORMATION SYSTEM.

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

    [[Page 110 STAT. 2725]]

    sultation with the Secretary of Defense, shall prepare a database on
    chemical and biological agents and munitions characteristics and safety
    precautions for civilian use. The initial design and compilation of the
    database shall be completed not later than December 31, 1997.
        (e) Access to Inventory and Database.--The Director of the Federal
    Emergency Management Agency shall design and maintain a system to give
    Federal, State, and local officials access to the inventory listing and
    database maintained under this section in the event of an emergency
    involving weapons of mass destruction or to prepare and train to respond
    to such
    an emergency. The system shall include a secure but accessible emergency
    response hotline to access information and request assistance.

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

    SEC. 1421. PROCUREMENT <<NOTE: 50 USC 2331.>> OF DETECTION
                              EQUIPMENT UNITED STATES BORDER SECURITY.

        Of the amount authorized to be appropriated by section 301,
    $15,000,000 is available for the procurement of--
                (1) equipment capable of detecting the movement of weapons
            of mass destruction and related materials into the United
            States;
                (2) equipment capable of interdicting the movement of
            weapons of mass destruction and related materials into the
            United States; and
                (3) materials and technologies related to use of equipment
            described in paragraph (1) or (2).
    SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY
                              ECONOMIC POWERS ACT.

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

    SEC. 1423. <<NOTE: 50 USC 2332.>> SENSE OF CONGRESS CONCERNING CRIMINAL
                PENALTIES.

        (a) Sense of Congress Concerning Inadequacy of Sentencing
    Guidelines.--It is the sense of Congress that the sentencing guidelines
    prescribed by the United States Sentencing Commission for the offenses
    of importation, attempted importation, exportation, and attempted
    exportation of nuclear, biological, and chemical weapons materials
    constitute inadequate punishment for such offenses.
        (b) Urging of Revison to Guidelines.--Congress urges the United
    States Sentencing Commission to revise the relevant sentencing
    guidelines to provide for increased penalties for offenses relating to
    importation, attempted importation, exportation, and attempted
    exportation of nuclear, biological, or chemical weapons or related
    materials or technologies under the following provisions of law:
                (1) Section 11 of the Export Administration Act of 1979 (50
            U.S.C. App. 2410).

    [[Page 110 STAT. 2726]]

                (2) Sections 38 and 40 of the Arms Export Control Act (22
            U.S.C. 2778 and 2780).
                (3) The International Emergency Economic Powers Act
            (50 U.S.C. 1701 et seq.).
                (4) Section 309(c) of the Nuclear Non-Proliferation Act of
            1978 (22 U.S.C. 2156a(c)).

    SEC. 1424. <<NOTE: 50 USC 2333.>> INTERNATIONAL BORDER SECURITY.

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

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

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

                              WEAPONS.

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

    SEC. 1432. <<NOTE: 50 USC 2341.>> ELIMINATION OF PLUTONIUM PRODUCTION.

        (a) Replacement Program.--The Secretary of Energy, in consultation
    with the Secretary of Defense, shall develop a cooperative program with
    the Government of Russia to eliminate the production of weapons grade
    plutonium by modifying or replacing the reactor cores at Tomsk-7 and
    Krasnoyarsk-26 with reactor cores that are less suitable for the
    production of weapons-grade plutonium.
        (b) Program Requirements.--(1) The program shall be designed to
    achieve completion of the modifications or replacements of the reactor
    cores within three years after the modification or replacement
    activities under the program are begun.

    [[Page 110 STAT. 2727]]

        (2) The plan for the program shall--
                (A) specify--
                        (i) successive steps for the modification or
                    replacement of the reactor cores; and
                        (ii) clearly defined milestones to be achieved; and
                (B) include estimates of the costs of the program.

        (c) Submission of Program Plan to Congress.--Not later than 180 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall submit to Congress--
                (1) a plan for the program under subsection (a);
                (2) an estimate of the United States funding that is
            necessary for carrying out the activities under the program for
            each fiscal year covered by the program; and
                (3) a comparison of the benefits of the program with the
            benefits of other nonproliferation programs.

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

    SEC. 1441. <<NOTE: 50 USC 2351.>> NATIONAL COORDINATOR ON
                NONPROLIFERATION.

        (a) Designation <<NOTE: President.>> of Position.--The President
    shall designate an individual to serve in the Executive Office of the
    President as the National Coordinator for Nonproliferation Matters.

        (b) Duties.--The Coordinator, under the direction of the National
    Security Council, shall advise and assist the
    President by--
                (1) advising the President on nonproliferation of weapons of
            mass destruction, including issues related to terrorism, arms
            control, and international organized crime;
                (2) chairing the Committee on Nonproliferation established
            under section 1342; and
                (3) taking such actions as are necessary to ensure that
            there is appropriate emphasis in, cooperation on, and
            coordination of, nonproliferation research efforts of the United
            States, including activities of Federal agencies as well as
            activities of contractors funded by the Federal Government.

        (c) Allocation of Funds.--Of the total amount authorized to be
    appropriated under section 301, $2,000,000 is available to the
    Department of Defense for carrying out research referred to in
    subsection (b)(3).
    SEC. 1442. NATIONAL <<NOTE: 50 USC 2352.>> SECURITY COUNCIL
                              COMMITTEE ON NONPROLIFERATION.

        (a) Establishment.--The Committee on Nonproliferation (in this
    section referred to as the ``Committee'') is established as a committee
    of the National Security Council.
        (b) Membership.--(1) The Committee shall be composed of
    representatives of the following:
                (A) The Secretary of State.
                (B) The Secretary of Defense.
                (C) The Director of Central Intelligence.
                (D) The Attorney General.
                (E) The Secretary of Energy.

    [[Page 110 STAT. 2728]]

                (F) The Administrator of the Federal Emergency Management
            Agency.
                (G) The Secretary of the Treasury.
                (H) The Secretary of Commerce.
                (I) Such other members as the President may designate.

        (2) The National Coordinator for Nonproliferation Matters shall
    chair the Committee on Nonproliferation.
        (c) Responsibilities.--The Committee has the following
    responsibilities:
                (1) To review and coordinate Federal programs, policies, and
            directives relating to the proliferation of weapons of mass
            destruction and related materials and technologies, including
            matters relating to terrorism and international organized crime.
                (2) To make recommendations through the National Security
            Council to the President regarding the following:
                        (A) Integrated national policies for countering the
                    threats posed by weapons of mass destruction.
                        (B) Options for integrating Federal agency budgets
                    for countering such threats.
                        (C) Means to ensure that Federal, State, and local
                    governments have adequate capabilities to manage crises
                    involving nuclear, radiological, biological, or chemical
                    weapons or related materials or technologies, and to
                    manage the consequences of a use of such weapon or
                    related materials or technologies, and that use of those
                    capabilities is coordinated.
                        (D) Means to ensure appropriate cooperation on, and
                    coordination of, the following:
                              (i) Preventing the smuggling of weapons of
                          mass destruction and related materials and
                          technologies.
                              (ii) Promoting domestic and international law
                          enforcement efforts against proliferation-related
                          efforts.
                              (iii) Countering the involvement of organized
                          crime groups in proliferation-related activities.
                              (iv) Safeguarding weapons of mass destruction
                          materials and related technologies.
                              (v) Improving coordination and cooperation
                          among intelligence activities, law enforcement,
                          and the Departments of Defense, State, Commerce,
                          and Energy in support of nonproliferation and
                          counterproliferation efforts.
                              (vi) Improving export controls over materials
                          and technologies that can contribute to the
                          acquisition of weapons of mass destruction.
                              (vii) Reducing proliferation of weapons of
                          mass destruction and related materials and
                          technologies.

    SEC. 1443. <<NOTE: President. 50 USC 2353.>> COMPREHENSIVE PREPAREDNESS
                PROGRAM.

        (a) Program Required.--The President, acting through the Committee
    on Nonproliferation established under section 1442, shall develop a
    comprehensive program for carrying out this title.
        (b) Content of Program.--The program set forth in the report shall
    include specific plans as follows:
                (1) Plans for countering proliferation of weapons of mass
            destruction and related materials and technologies.

    [[Page 110 STAT. 2729]]

                (2) Plans for training and equipping Federal, State, and
            local officials for managing a crisis involving a use or
    threatened use of a weapon of mass destruction, including the
    consequences of the use of such a weapon.
                (3) Plans for providing for regular sharing of information
            among intelligence, law enforcement, and customs agencies.
                (4) Plans for training and equipping law enforcement units,
            customs services, and border security personnel to counter the
            smuggling of weapons of mass destruction and related materials
            and technologies.
                (5) Plans for establishing appropriate centers for analyzing
            seized nuclear, radiological, biological, and chemical weapons,
            and related materials and technologies.
                (6) Plans for establishing in the United States appropriate
            legal controls and authorities relating to the exporting of
            nuclear, radiological, biological, and chemical weapons, and
            related materials and technologies.
                (7) Plans for encouraging and assisting governments of
            foreign countries to implement and enforce laws that set forth
            appropriate penalties for offenses regarding the smuggling of
            weapons of mass destruction and related materials and
            technologies.
                (8) Plans for building the confidence of the United States
            and Russia in each other's controls over United States and
            Russian nuclear weapons and fissile materials, including plans
            for verifying the dismantlement of nuclear weapons.
                (9) Plans for reducing United States and Russian stockpiles
            of excess plutonium, reflecting--
                        (A) consideration of the desirability and
                    feasibility of a United States-Russian agreement
                    governing fissile material disposition and the specific
                    technologies and approaches to be used for disposition
                    of excess plutonium; and
                        (B) an assessment of the options for United States
                    cooperation with Russia in the disposition of Russian
                    plutonium.
                (10) Plans for studying the merits and costs of establishing
            a global network of means for detecting and responding to
            terroristic or other criminal use of biological agents against
            people or other forms of life in the United States or any
            foreign country.

        (c) Report.--(1) At the same time that the President submits the
    budget for fiscal year 1998 to Congress pursuant to section 1105(a) of
    title 31, United States Code, the President shall submit to Congress a
    report that sets forth the comprehensive program developed under
    subsection (a).
        (2) The report shall include the following:
                (A) The specific plans for the program that are required
            under subsection (b).
                (B) Estimates of the funds necessary, by agency or
            department, for carrying out such plans in fiscal year 1998 and
            the following five fiscal years.

        (3) The report shall be in an unclassified form. If there is a
    classified version of the report, the President shall submit the
    classified version at the same time.

    [[Page 110 STAT. 2730]]

    SEC. 1444. <<NOTE: 50 USC 2354.>> TERMINATION.

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

                            Subtitle E--Miscellaneous

    SEC. 1451. <<NOTE: 50 USC 2361.>> SENSE OF CONGRESS CONCERNING
                CONTRACTING POLICY.

        It is the sense of Congress that the Secretary of Defense, the
    Secretary of Energy, the Secretary of the Treasury, and the Secretary of
    State, to the extent authorized by law, should--
                (1) contract directly with suppliers in independent states
            of the former Soviet Union when such action would--
                        (A) result in significant savings of the programs
                    referred to in subtitle C; and
                        (B) substantially expedite completion of the
                    programs referred to in subtitle C; and
                (2) seek means to use innovative contracting approaches to
            avoid delay and increase the effectiveness of such programs and
            of the exercise of such authorities.
    SEC. 1452. TRANSFERS <<NOTE: 50 USC 2362.>> OF ALLOCATIONS AMONG
                              COOPERATIVE THREAT REDUCTION PROGRAMS.

        Congress finds that--
                (1) the various Cooperative Threat Reduction programs are
            being carried out at different rates in the various countries
            covered by such programs; and
                (2) it is necessary to authorize transfers of funding
            allocations among the various programs in order to maximize the
            effectiveness of United States efforts under such programs.
    SEC. 1453. SENSE <<NOTE: 50 USC 2363.>> OF CONGRESS CONCERNING
                              ASSISTANCE TO STATES OF FORMER SOVIET
                              UNION.

        It is the sense of Congress that--
                (1) the Cooperative Threat Reduction programs and other
            United States programs authorized in the National Defense
            Authorization Act for Fiscal Years 1993 and 1994 should be
            expanded by offering assistance under those programs to other
            independent states of the former Soviet Union in addition to
            Russia, Ukraine, Kazakstan, and Belarus; and
                (2) the President should offer assistance to additional
            independent states of the former Soviet Union in each case in
            which the participation of such states would benefit national
            security interests of the United States by improving border
            controls and safeguards over materials and technology associated
            with weapons of mass destruction.
    SEC. 1454. PURCHASE <<NOTE: 50 USC 2364.>> OF LOW-ENRICHED URANIUM
                              DERIVED FROM RUSSIAN HIGHLY ENRICHED
                              URANIUM.

        (a) Sense of Congress.--It is the sense of Congress that the allies
    of the United States and other nations should participate in efforts to
    ensure that stockpiles of weapons-grade nuclear material are reduced.
        (b) Actions by the Secretary of State.--Congress urges the Secretary
    of State to encourage, in consultation with the Sec

    [[Page 110 STAT. 2731]]

    retary of Energy, other countries to purchase low-enriched uranium that
    is derived from highly enriched uranium extracted from Russian nuclear
    weapons.
    SEC. 1455. SENSE <<NOTE: 50 USC 2365.>> OF CONGRESS CONCERNING
                              PURCHASE, PACKAGING, AND TRANSPORTATION
                              OF FISSILE MATERIALS AT RISK OF THEFT.

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

                        TITLE XV--COOPERATIVE THREAT RE-
                   DUCTION WITH STATES OF FORMER SOVIET UNION

    Sec. 1501. Specification of Cooperative Threat Reduction programs.
    Sec. 1502. Fiscal year 1997 funding allocations.
    Sec. 1503. Prohibition on use of funds for specified purposes.
    Sec. 1504. Limitation on use of funds until specified reports are
               submitted.
    Sec. 1505. Availability of funds.

    SEC. 1501. <<NOTE: 50 USC 2362 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. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

        (a) In General.--Of the amount appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs, not more than the following amounts may be obligated
    for the purposes specified:

    [[Page 110 STAT. 2732]]

                (1) For planning and design of a chemical weapons
            destruction facility in Russia, $78,500,000.
                (2) For elimination of strategic offensive arms in Russia,
            $52,000,000.
                (3) For strategic nuclear arms elimination in Ukraine,
            $47,000,000.
                (4) For planning and design of a storage facility for
            Russian fissile material, $66,000,000.
                (5) For fissile material containers in Russia, $38,500,000.
                (6) For weapons storage security in Russia, $15,000,000.
                (7) For activities designated as Defense and Military-to-
            Military Contacts in Russia, Ukraine, Belarus, and Kazakhstan,
            $10,000,000.
                (8) For activities designated as Other Assessments/
            Administrative Support, $20,900,000.
                (9) For materials protection, control, and accounting
            assistance or for destruction of nuclear, radiological,
            biological, or chemical weapons or related materials at any site
            within the former Soviet Union, $10,000,000.
                (10) For transfer to the Secretary of Energy to develop a
            cooperative program with the Government of Russia to eliminate
            the production of weapons grade plutonium at Russian reactors,
            $10,000,000.
                (11) For dismantlement of biological and chemical weapons
            facilities in the former Soviet Union, $15,000,000.
                (12) For expanding military-to-military programs of the
            United States that focus on countering the threat of
            proliferation of weapons of mass destruction to include the
            security forces of the independent states of the former Soviet
            Union, particularly states in the Caucasus region and Central
            Asia, $2,000,000.

        (b) Limited Authority To Vary Individual Amounts.--(1) If the
    Secretary of Defense determines that it is necessary to do so in the
    national interest, the Secretary may, subject to paragraph (2), obligate
    amounts for the purposes stated in any of the paragraphs of subsection
    (a) in excess of the amount specified for those purposes in that
    paragraph, but not in excess of 115 percent of that amount. However, the
    total amount obligated for the purposes stated in the
    paragraphs in subsection (a) may not by reason of the use of the
    authority provided in the preceding sentence exceed the sum of the
    amounts specified in those paragraphs.

        (2) An obligation for the purposes stated in any of the paragraphs
    in subsection (a) in excess of the amount specified in that paragraph
    may be made using the authority provided in paragraph (1) only after--
                (A) the Secretary submits to Congress a notification of the
            intent to do so together with a complete discussion of the
            justification for doing so; and
                (B) 15 days have elapsed following the date of the
            notification.

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

        (a) In General.--None of the funds appropriated pursuant to the
    authorization in section 301 for Cooperative Threat Reduction programs,
    or appropriated for such programs for any prior fiscal

    [[Page 110 STAT. 2733]]

    year and remaining available for obligation, may be obligated or
    expended for any of the following purposes:
                (1) Conducting with Russia any peacekeeping exercise or
            other peacekeeping-related activity.
                (2) Provision of housing.
                (3) Provision of assistance to promote environmental
            restoration.
                (4) Provision of assistance to promote job retraining.

        (b) Limitation With Respect to Defense Conversion Assistance.--None
    of the funds appropriated to the Department of Defense for fiscal year
    1997 may be obligated or expended for defense conversion.
    SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE
                              SUBMITTED.

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

    SEC. 1505. AVAILABILITY OF FUNDS.

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

               TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

    Sec. 1601. Modification of requirement for conversion of military
                          positions to
                          civilian positions.
    Sec. 1602. Retention of civilian employee positions at military training
                          bases transferred to National Guard.
    Sec. 1603. Clarification of applicability of certain management
                          constraints on major range and test facility base
                          structure.
    Sec. 1604. Travel expenses and health care for civilian employees of the
                          Department of Defense abroad.
    Sec. 1605. Travel, transportation, and relocation allowances for certain
                          former nonappropriated fund employees.
    Sec. 1606. Employment and salary practices applicable to Department of
                          Defense overseas teachers.
    Sec. 1607. Employment and compensation of civilian faculty members at
                          certain Department of Defense schools.
    Sec. 1608. Reimbursement of Department of Defense domestic dependent
                          school board members for certain expenses.

    [[Page 110 STAT. 2734]]

    Sec. 1609. Modification of authority for civilian employees of
                          Department of
                          Defense to participate voluntarily in reductions
                          in force.
    Sec. 1610. Wage-board compensatory time off.
    Sec. 1611. Liquidation of restored annual leave that remains unused upon
                          transfer of employee from installation being
                          closed or realigned.
    Sec. 1612. Waiver of requirement for repayment of Voluntary Separation
                          Incentive pay by former Department of Defense
                          employees reemployed by the Government without
                          pay.
    Sec. 1613. Simplification of rules relating to the observance of certain
                          holidays.
    Sec. 1614. Revision of certain travel management authorities.
    Sec. 1615. Failure to comply with veterans' preference requirements to
                          be treated as a prohibited personnel practice.
    Sec. 1616. Pilot programs for defense employees converted to contractor
                          employees due to privatization at closed military
                          installations.

         Subtitle B--Department of Defense Intelligence Personnel Policy

    Sec. 1631. Short title.
    Sec. 1632. Management of civilian intelligence personnel.
    Sec. 1633. Repeal of superseded sections and clerical and conforming
                          amendments.
    Sec. 1634. Other personnel management authorities.
    Sec. 1635. Effective date.

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

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

        (a) Elimination of Requirement for Fiscal Year 1997 Conversions.--
    Paragraph (1) of section 1032(a) of the National Defense Authorization
    Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429; 10 U.S.C.
    129a note) is amended--
                (1) by striking out ``September 30, 1997'' and inserting in
            lieu thereof ``September 30, 1996''; and
                (2) by striking out ``10,000'' and inserting in lieu thereof
            ``3,000''.

        (b) Conforming Amendments.--Such section is further amended--
                (1) by striking out paragraph (2); and
                (2) by redesignating paragraph (3) as paragraph (2).

        (c) Effective Date.--(1) <<NOTE: Certification. 10 USC 129a
    note.>> The amendments made by this section shall take effect 30 days
    after the date on which the Secretary of Defense submits to Congress a
    certification that at least 3,000 military positions have been converted
    to civilian positions during fiscal year 1996 as required by section
    1032(a) of the National Defense Authorization Act for Fiscal Year 1996
    (Public Law 104-106; 110 Stat. 429).

        (2) The <<NOTE: Federal Register, publication.>> Secretary shall
    publish in the Federal Register a notice of the submission of any
    certification to Congress under paragraph (1), including the date on
    which the certification was submitted to Congress.
    SEC. 1602. RETENTION <<NOTE: 10 USC 2687 note.>> OF CIVILIAN
                              EMPLOYEE POSITIONS AT MILITARY TRAINING
                              BASES TRANSFERRED TO NATIONAL GUARD.

        (a) Retention of Employee Positions.--In the case of a military
    training installation described in subsection (b), the Secretary of
    Defense shall retain civilian employee positions of the Department of
    Defense at the installation after transfer to the National

    [[Page 110 STAT. 2735]]

    Guard to facilitate active and reserve component training at the
    installation. The Secretary shall determine the extent to which
    positions at the installation are to be retained as positions of the
    Department of Defense in consultation with the Adjutant
    General of the National Guard of the State in which the installation is
    located.
        (b) Military Training Installations Affected.--This section applies
    with respect to each military training installation that--
                (1) was approved for closure in 1995 under the Defense Base
            Closure and Realignment Act of 1990 (part A of title XXIX of
            Public Law 101-510; 10 U.S.C. 2687 note);
                (2) is scheduled for transfer to National Guard operation
            and control; and
                (3) will continue to be used, after such transfer, to
            provide training support to active and reserve components of the
            Armed Forces.

        (c) Maximum Positions Retained.--The number of civilian employee
    positions retained at an installation under this section may not exceed
    20 percent of the Federal civilian workforce employed at the
    installation as of September 8, 1995.
        (d) Removal of Position.--The requirement to maintain a civilian
    employee position at an installation under this section terminates upon
    the later of the following:
                (1) The date of the departure or retirement from that
            position by the civilian employee initially employed or retained
            in the position as a result of this section.
                (2) The date on which the Secretary certifies to Congress
            that the position is no longer required to ensure that effective
            support is provided at the installation for active and reserve
            component training.
    SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT
                              CONSTRAINTS ON MAJOR RANGE AND TEST
                              FACILITY BASE STRUCTURE.

        Section 129 of title 10, United States Code, is amended--
                (1) in subsection (c)(1), by inserting ``, the Major Range
            and Test Facility Base,'' after ``industrial-type activities'';
            and
                (2) by adding at the end the following:

        ``(e) Subsections (a), (b), and (c) apply to the Major Range and
    Test Facility Base (MRTFB) at the installation level. With respect to
    the MRTFB structure, the term `funds made available' includes both
    direct appropriated funds and funds provided by MRTFB customers.''.
    SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN EMPLOYEES
                              OF THE DEPARTMENT OF DEFENSE ABROAD.

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

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

        ``(a) In General.--The Secretary of Defense may provide civilian
    employees, and members of their families, abroad with benefits that are
    comparable to certain benefits that are provided by the Secretary of
    State to members of the Foreign Service and their families abroad as
    described in subsections (b) and (c). The Secretary may designate the
    employees and members of families who are eligible to receive the
    benefits.

    [[Page 110 STAT. 2736]]

        ``(b) Travel and Related Expenses.--The Secretary of Defense may pay
    travel expenses and related expenses for purposes and in amounts that
    are comparable to the purposes for which, and the amounts in which,
    travel and related expenses are paid by the Secretary of State under
    section 901 of the Foreign Service Act of 1980 (22 U.S.C. 4081).
        ``(c) Health Care Program.--The Secretary of Defense may establish a
    health care program that is comparable to the health care program
    established by the Secretary of State under section 904 of the Foreign
    Service Act of 1980 (22 U.S.C. 4084).
        ``(d) Assistance.--The Secretary of Defense may enter into
    agreements with the heads of other departments and agencies of the
    Government in order to facilitate the payment of expenses authorized by
    subsection (b) and to carry out a health care pro-
    gram authorized by subsection (c).
        ``(e) Abroad Defined.--In this section, the term `abroad' means
    outside--
                ``(1) the United States; and
                ``(2) the territories and possessions of the United
            States.''.

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

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

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

        (a) In General.--(1) Subchapter II of chapter 57 of title 5, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 5736. Travel, transportation, and relocation expenses of
                      certain nonappropriated fund employees

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

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

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

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

        (a) Expansion of Scope of Educators Covered.--Section 2 of the
    Defense Department Overseas Teachers Pay and Personnel Practices Act (20
    U.S.C. 901) is amended--

    [[Page 110 STAT. 2737]]

                (1) in subparagraph (A) of paragraph (1), by inserting ``,
            or are performed by an individual who carried out certain
            teaching activities identified in regulations prescribed by the
            Secretary of Defense'' after ``Defense,''; and
                (2) by striking out subparagraph (C) of paragraph (2) and
            inserting in lieu thereof the following:
                        ``(C) who is employed in a teaching position
                    described in paragraph (1).''.

        (b) Transfer of Responsibility for Employment and Salary
    Practices.--Section 5 of such Act (20 U.S.C. 903) is amended--
                (1) in subsection (a)--
                        (A) by striking out ``Secretary of each military
                    department in the Department of Defense'' and inserting
                    in lieu thereof ``Secretary of Defense''; and
                        (B) by striking out ``his military department'' and
                    inserting in lieu thereof ``the Department of Defense'';
                (2) in subsection (b)--
                        (A) in the matter preceding paragraph (1), by
                    striking out ``secretary of each military department--''
                    and inserting in lieu thereof ``Secretary of Defense--
                    ''; and
                        (B) in paragraph (1), by striking out ``his military
                    department,'' and inserting in lieu thereof ``the
                    Department of Defense'';
                (3) in subsection (c)--
                        (A) by striking out ``Secretary of each military
                    department'' and inserting in lieu thereof ``Secretary
                    of Defense''; and
                        (B) by striking out ``his military department'' and
                    inserting in lieu thereof ``the Department of Defense'';
                    and
                (4) in subsection (d), by striking out ``Secretary of each
            military department'' and inserting in lieu thereof ``Secretary
            of Defense''.
    SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY MEMBERS
                              AT CERTAIN DEPARTMENT OF DEFENSE
                              SCHOOLS.

        (a) Faculties.--Subsection (c) of section 1595 of title 10, United
    States Code, is amended by adding at the end the following new
    paragraphs:
                ``(4) The English Language Center of the Defense Language
            Institute.
                ``(5) The Asia-Pacific Center for Security Studies.''.

        (b) Certain Administrators.--Such section is further amended by
    adding at the end the following new subsection:
        ``(f) Application to Director and Deputy Director at Asia-Pacific
    Center for Security Studies.--In the case of the Asia-Pacific Center for
    Security Studies, this section also applies with respect to the Director
    and the Deputy Director.''.
    SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC
                              DEPENDENT SCHOOL BOARD MEMBERS FOR
                              CERTAIN EXPENSES.

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

    [[Page 110 STAT. 2738]]

    and necessary for the performance of school board duties by the
    member.''.
    SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF
                              DEPARTMENT OF DEFENSE TO PARTICIPATE
                              VOLUNTARILY IN REDUCTIONS IN FORCE.

        Subsection (f) of section 3502 of title 5, United States Code, is
    amended to read as follows:
        ``(f)(1) The Secretary of Defense or the Secretary of a military
    department may--
                ``(A) separate from service any employee who volunteers to
            be separated under this subparagraph even though the employee is
            not otherwise subject to separation due to a reduction in force;
            and
                ``(B) for each employee voluntarily separated under
            subparagraph (A), retain an employee in a similar position who
            would otherwise be separated due to a reduction in force.

        ``(2) The separation of an employee under paragraph (1)(A) shall be
    treated as an involuntary separation due to a reduction in force.
        ``(3) An employee with critical knowledge and skills (as defined by
    the Secretary concerned) may not participate in a voluntary separation
    under paragraph (1)(A) if the Secretary concerned determines that such
    participation would impair the performance of the mission of the
    Department of Defense or the military department concerned.
        ``(4) <<NOTE: Regulations.>> The regulations prescribed under this
    section shall incorporate the authority provided in this subsection.

        ``(5) <<NOTE: Termination date.>> No authority under paragraph (1)
    may be exercised after September 30, 2001.''.

    SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

        (a) In General.--Section 5543 of title 5, United States Code, is
    amended--
                (1) by redesignating subsection (b) as subsection (c); and
                (2) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) The head of an agency may, on request of an employee, grant
    the employee compensatory time off from the employee's scheduled tour of
    duty instead of payment under section 5544 or section 7 of the Fair
    Labor Standards Act of 1938 for an equal amount of time spent in
    irregular or occasional overtime work. An agency head may not require an
    employee to be compensated for overtime work with an equivalent amount
    of compensatory time-off from the employee's tour of duty.''.
        (b) Conforming Amendment.--Section 5544(c) of title 5, United States
    Code, is amended by inserting ``and the provisions of section 5543(b)''
    after ``the last two sentences of subsection (a)''.
    SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT REMAINS
                              UNUSED UPON TRANSFER OF EMPLOYEE FROM
                              INSTALLATION BEING CLOSED OR REALIGNED.

        (a) Lump-Sum Payment Required.--Section 5551 of title 5, United
    States Code, is amended by adding at the end the following:
        ``(c)(1) Annual leave that is restored to an employee of the
    Department of Defense under section 6304(d) of this title by reason of
    the operation of paragraph (3) of such section and remains unused upon
    the transfer of the employee to a position described

    [[Page 110 STAT. 2739]]

    in paragraph (2) shall be liquidated by payment of a lump-sum for such
    leave to the employee upon the transfer.
        ``(2) A position referred to in paragraph (1) is a position in a
    department or agency of the Federal Government outside the Department of
    Defense or a Department of Defense position that is not located at a
    Department of Defense installation being closed or realigned as
    described in section 6304(d)(3) of this title.''.
        (b) Applicability.--Subsection <<NOTE: 5 USC 5551 note.>> (c) of
    section 5551 of title 5, United States Code (as added by subsection
    (a)), shall apply with respect to transfers described in such subsection
    (c) that take effect on or after the date of the enactment of this Act.
    SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY
                              SEPARATION INCENTIVE PAY BY FORMER
                              DEPARTMENT OF DEFENSE EMPLOYEES
                              REEMPLOYED BY THE GOVERNMENT WITHOUT
                              PAY.

        (a) In General.--Section 5597(g) of title 5, United States Code, is
    amended by adding at the end the following new paragraph:
        ``(5) If the employment is without compensation, the appointing
    official may waive the repayment.''.
        (b) Applicability.--The <<NOTE: 5 USC 5597 note.>> amendment made by
    subsection (a) shall apply with respect to employment accepted on or
    after the date of the enactment of this Act.
    SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE OF
                              CERTAIN HOLIDAYS.

        Section 6103 of title 5, United States Code, is amended by adding at
    the end the following new subsection:
        ``(d)(1) For purposes of this subsection--
                ``(A) the term `compressed schedule' has the meaning given
            such term by section 6121(5); and
                ``(B) the term `adverse agency impact' has the meaning given
            such term by section 6131(b).

        ``(2) An agency may prescribe rules under which employees on a
    compressed schedule may, in the case of a holiday that occurs on a
    regularly scheduled non-workday for such employees, and notwithstanding
    any other provision of law or the terms of any collective bargaining
    agreement, be required to observe such holiday on a workday other than
    as provided by subsection (b), if the agency head determines that it is
    necessary to do so in order to prevent an adverse agency impact.''.
    SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT
                              AUTHORITIES.

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

    [[Page 110 STAT. 2740]]

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

        (a) In General.--(1) Chapter 81 of title 10, United States Code, as
    amended by section 1604, is further amended by adding at the end the
    following new section:
    ``Sec. 1599c. Veterans' preference requirements: Department of
                        Defense failure to comply treated as a
                        prohibited personnel practice

        ``(a) Prohibited Personnel Practice.--It is a prohibited personnel
    practice for a person referred to in subsection (b) who has authority
    described in that subsection--
                ``(1) knowingly to take, recommend, or approve any personnel
            action with respect to such authority if the taking of such
            action violates a veterans' preference; or
                ``(2) knowingly to fail to take, recommend, or approve any
            personnel action with respect to such authority, if the failure
            to take such action violates a veterans' preference.

        ``(b) Persons Covered.--Subsection (a) applies with
    respect to--
                ``(1) an officer or employee of the Department of Defense
            who has authority to take, direct others to take, recommend, or
            approve a personnel action with respect to an employee of the
            Department of Defense; and
                ``(2) a member of the armed forces who has such authority.

        ``(c) Veterans' Preference Defined.--(1) In this section, the term
    `veterans' preference' means any of the following provisions of law:
                ``(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313,
            3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 3501,
            3502(b), 3504, and 4303(e) of title 5 and (with respect to a
            preference eligible referred to in section 7511(a)(1)(B) of such
            title) subchapter II of chapter 75 and section 7701 of such
            title.
                ``(B) Sections 943(c)(2) and 1784(c) of this title.
                ``(C) Section 1308(b) of the Alaska National Interest Lands
            Conservation Act (16 U.S.C. 3198(b)).
                ``(D) Section 301(c) of the Foreign Service Act of 1980 (22
            U.S.C. 3941(c)).
                ``(E) Section 3(a)(11) of the Administrative Office of the
            United States Courts Personnel Act of 1990 (28 U.S.C. 602 note).
                ``(F) Sections 106(f), 7281(e), and 7802(5) of title 38.
                ``(G) Section 1005(a) of title 39.
                ``(H) Any other provision of law that the Director of the
            Office of Personnel Management designates in regulations as
            being a veterans' preference for the purposes of this section.

        ``(2) For the purposes of this section, such term includes
    any regulation prescribed under subsection (b) or (c) of section 1302 of
    title 5 and any other regulation that implements a provision of law
    referred to in paragraph (1).
        ``(d) Personnel Action Defined.--In this section, the term
    `personnel action' has the meaning given that term in section 2302 of
    title 5.''.

    [[Page 110 STAT. 2741]]

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

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

        (b) Applicability of Title 5 Procedures and Sanctions.--Paragraph
    (1) of section 2302(a) of title 5, United States Code, is amended to
    read as follows:
        ``(1) For purposes of this title, `prohibited personnel practice'
    means the following:
                ``(A) Any action described in subsection (b) of this
            section.
                ``(B) Any action or failure to act that is designated as a
            prohibited personnel action under section 1599c(a) of title
            10.''.

        (c) Reporting Requirement.--Not later than six months after the date
    of the enactment of this Act, the Secretary of Defense shall submit to
    Congress a written report on--
                (1) the implementation of--
                        (A) section 1599c of title 10, United States Code,
                    as added by subsection (a); and
                        (B) subparagraph (B) of section 2302(a)(1) of title
                    5, United States Code, as added by subsection (b); and
                (2) the administration of veterans' preference requirements
            by the Department of Defense generally.
    SEC. 1616. PILOT <<NOTE: 5 USC 8331 note.>> PROGRAMS FOR DEFENSE
                              EMPLOYEES CONVERTED TO CONTRACTOR
                              EMPLOYEES DUE TO PRIVATIZATION AT CLOSED
                              MILITARY INSTALLATIONS.

        (a) Pilot Programs Authorized.--(1) The Secretary of Defense, after
    consultation with the Director of the Office of Personnel Management,
    may establish one or more pilot programs under which Federal retirement
    benefits are provided in accordance with this section to persons who
    convert from Federal employment to employment by a Department of Defense
    contractor in connection with the privatization of the performance of
    functions at selected military installations being closed under the base
    closure and realignment process.
        (2) The Secretary of Defense shall select the military installations
    to be covered by a pilot program under this section.
        (b) Eligible Converted Employees.--(1) A person is a converted
    employee eligible for Federal retirement benefits under this section if
    the person is a former employee of the Department of Defense (other than
    a temporary employee) who--
                (A) while employed by the Department of Defense at a
            military installation selected to participate in a pilot
            program, performed a function that was recommended, in a report
            of the Defense Base Closure and Realignment Commission submitted
            to the President under the Defense Base Closure and Realignment
            Act of 1990 (title XXIX of Public Law 101-510; 10 U.S.C. 2687
            note), to be privatized for performance by a defense contractor
            at the same installation or in the vicinity of the installation;
                (B) while so employed, separated from Federal service after
            being notified that the employee would be separated in a
            reduction in force resulting from such privatization;
                (C) at the time separated from Federal service, was covered
            under the Civil Service Retirement System, but was not eligible

    [[Page 110 STAT. 2742]]

            for an immediate annuity under the Civil Service Retirement
            System;
                (D) does not withdraw retirement contributions under section
            8342 of title 5, United States Code;
                (E) within 60 days following such separation, is employed by
            the defense contractor selected to privatize the function to
            perform substantially the same function performed by the person
            before the separation; and
                (F) remains employed by the defense contractor (or a
            successor defense contractor) or subcontractor of the defense
            contractor (or successor defense contractor) until attaining
            early deferred retirement age (unless the employment is sooner
            involuntarily terminated for reasons other than performance or
            conduct of the employee).

        (2) A person who, under paragraph (1), would otherwise be eligible
    for an early deferred annuity under this section shall not be eligible
    for such benefits if the person received separation pay or severance pay
    due to a separation described in subparagraph (B) of that paragraph
    unless the person repays the full amount of such pay with interest
    (computed at a rate determined appropriate by the Director of the Office
    of Personnel Management) to the Department of Defense before attaining
    early deferred retirement age.
        (c) Retirement Benefits of Converted Employees.--In the case of a
    converted employee covered by a pilot program, payment of a deferred
    annuity for which the converted employee is eligible under section
    8338(a) of title 5, United States Code, shall commence on the first day
    of the first month that begins after the date on which the converted
    employee attains early deferred retirement age, notwithstanding the age
    requirement under that section. If the employment of a converted
    employee is involuntarily terminated by the defense contractor or
    subcontractor as described in subsection (b)(1)(F) and the converted
    employee resumes Federal service before the converted employee attains
    early deferred retirement age, the converted employee shall once again
    be covered under the Civil Service Retirement System instead of the
    pilot program.
        (d) Computation of Average Pay.--(1)(A) This paragraph applies to a
    converted employee who was employed in a position classified under the
    General Schedule immediately before the employee's covered separation
    from Federal service.
        (B) Subject to subparagraph (C), for purposes of computing the
    deferred annuity for a converted employee referred to in subparagraph
    (A), the average pay of the converted employee, computed under section
    8331(4) of title 5, United States Code, as of the date of the employee's
    covered separation from Federal service, shall be adjusted at the same
    time and by the same percentage that rates of basic pay are increased
    under section 5303 of such title during the period beginning on that
    date and ending on the date on which the converted employee attains
    early deferred retirement age.
        (C) The average pay of a converted employee, as adjusted under
    subparagraph (B), may not exceed the amount to which an annuity of the
    converted employee could be increased under section 8340 of title 5,
    United States Code, in accordance with the limitation in subsection
    (g)(1) of such section (relating to maximum pay, final pay, or average
    pay).

    [[Page 110 STAT. 2743]]

        (2)(A) <<NOTE: Applicability.>> This paragraph applies to a
    converted employee who was a prevailing rate employee (as defined under
    section 5342(2) of title 5, United States Code) immediately before the
    employee's covered separation from Federal service.

        (B) For purposes of computing the deferred annuity for a converted
    employee referred to in subparagraph (A), the average pay of the
    converted employee, computed under section 8331(4) of title 5, United
    States Code, as of the date of the employee's covered separation from
    Federal service, shall be adjusted at the same time and by the same
    percentage that pay rates for positions that are in the same area as,
    and are comparable to, the last position the converted employee held as
    a prevailing rate employee, are increased under section 5343(a) of such
    title during the period beginning on that date and ending on the date on
    which the converted employee attains early deferred retirement age.
        (e) Payment of Unfunded Liability.--(1) The military department
    concerned shall be liable for that portion of any estimated increase in
    the unfunded liability of the Civil Service Retirement and Disability
    Fund established under section 8348 of title 5, United States Code,
    which is attributable to any benefits payable from such Fund to a
    converted employee, and any survivor of a converted employee, when the
    increase results from--
                (A) an increase in the average pay of the converted employee
            under subsection (d) upon which such benefits are computed; and
                (B) the commencement of an early deferred annuity in
            accordance with this section before the attainment of 62 years
            of age by the converted employee.

        (2) The estimated increase in the unfunded liability for each
    department referred to in paragraph (1) shall be determined by the
    Director of the Office of Personnel Management. In making the
    determination, the Director shall consider any savings to the Fund as a
    result of a pilot program established under this section. The Secretary
    of the military department concerned shall pay the amount so determined
    to the Director in 10 equal annual installments with interest computed
    at the rate used in the most recent valuation of the Civil Service
    Retirement System, with the first payment thereof due at the end of the
    fiscal year in which an increase in average pay under subsection (d)
    becomes effective.
        (f) Contractor Service Not Creditable.--Service performed by a
    converted employee for a defense contractor after the employee's covered
    separation from Federal service is not creditable service for purposes
    of subchapter III of chapter 83 of title 5, United States Code.
        (g) Receipt of Benefits While Employed by a Defense Contractor.--A
    converted employee may commence receipt of an early deferred annuity in
    accordance with this section while continuing to work for a defense
    contractor.
        (h) Lump-Sum Credit Payment.--If a converted employee dies before
    attaining early deferred retirement age, such employee shall be treated
    as a former employee who dies not retired for purposes of payment of the
    lump-sum credit under section 8342(d) of title 5, United States Code.
        (i) Continued Federal Health Benefits Coverage.--Notwithstanding
    section 8905a(e)(1)(A) of title 5, United States Code, the continued
    coverage of a converted employee for health benefits under chapter 89 of
    such title by reason of the application of

    [[Page 110 STAT. 2744]]

    section 8905a of such title to such employee shall terminate 90 days
    after the date of the employee's covered separation from
    Federal employment. For the purposes of the preceding sentence, a person
    who, except for subsection (b)(2), would be a converted employee shall
    be considered a converted employee.
        (j) Report by General Accounting Office.--The Comptroller General
    shall conduct a study of each pilot program, if any, established under
    this section and submit a report on the pilot program to Congress not
    later than two years after the date on which the program is established.
    The report shall contain the following:
                (1) A review and evaluation of the program, including--
                        (A) an evaluation of the success of the
                    privatization outcomes of the program;
                        (B) a comparison and evaluation of such
                    privatization outcomes with the privatization outcomes
                    with respect to facilities at other military
                    installations closed or realigned under the base closure
                    laws;
                        (C) an evaluation of the impact of the program on
                    the Federal workforce and whether the program results in
                    the maintenance of a skilled workforce for defense
                    contractors at an acceptable cost to the military
                    department concerned; and
                        (D) an assessment of the extent to which the program
                    is a cost-effective means of facilitating privatization
                    of the performance of Federal activities.
                (2) Recommendations relating to the expansion of the program
            to other installations and employees.
                (3) Any other recommendation relating to the program.

        (k) Implementing Regulations.--Not later than 30 days after the
    Secretary of Defense notifies the Director of the Office of Personnel
    Management of a decision to establish a pilot program under this
    section, the Director shall prescribe regulations to carry out the
    provisions of this section with respect to that pilot program. Before
    prescribing the regulations, the Director shall consult with the
    Secretary.
        (l) Definitions.--In this section:
                (1) The term ``converted employee'' means a person who,
            pursuant to subsection (b), is eligible for benefits under this
            section.
                (2) The term ``covered separation from Federal service''
            means a separation from Federal service as described under
            subsection (b)(1)(B).
                (3) The term ``Civil Service Retirement System'' means the
            retirement system under subchapter III of chapter 83 of title 5,
            United States Code.
                (4) The term ``defense contractor'' means any entity that--
                        (A) contracts with the Department of Defense to
                    perform a function previously performed by Department of
                    Defense employees;
                        (B) performs that function at the same installation
                    at which such function was previously performed by
                    Department of Defense employees or in the vicinity of
                    that installation; and
                        (C) is the employer of one or more converted
                    employees.
                (5) The term ``early deferred retirement age'' means the
            first age at which a converted employee would have been eligible
            for immediate retirement under subsection (a) or (b)

    [[Page 110 STAT. 2745]]

            of section 8336 of title 5, United States Code, if such
            converted employee had remained an employee within the meaning
            of section 8331(1) of such title continuously until attaining
            such age.
                (6) The term ``severance pay'' means severance pay payable
            under section 5595 of title 5, United States Code.
                (7) The term ``separation pay'' means separation pay payable
            under section 5597 of title 5, United States Code.

        (m) Application of Pilot Program.--In the event that a pilot program
    is established for a military installation, the pilot program shall
    apply to a covered separation from Federal service by an employee of the
    Department of Defense at the installation occurring on or after August
    1, 1996.

     Subtitle <<NOTE: Department of Defense Civilian Intelligence Personnel
     Policy Act of 1996.>> B--Department of Defense Intelligence Personnel
    Policy

    SEC. 1631. <<NOTE: 10 USC 1601 note.>> SHORT TITLE.

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

    SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

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

              ``CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

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

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

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

    [[Page 110 STAT. 2746]]

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

        ``(a) General Authority.--The Secretary of Defense may--
                ``(1) establish, as positions in the excepted service, such
            defense intelligence positions in the intelligence components of
            the Department of Defense and the military departments as the
            Secretary determines necessary to carry out the intelligence
            functions of those components and departments, including--
                        ``(A) Intelligence Senior Level positions designated
                    under section 1607 of this title; and
                        ``(B) positions in the Defense Intelligence Senior
                    Executive Service;
                ``(2) appoint individuals to those positions (after taking
            into consideration the availability of preference eligibles for
            appointment to those positions); and
                ``(3) fix the compensation of such individuals for service
            in those positions.

        ``(b) Construction With Other Laws.--The authority of the Secretary
    of Defense under subsection (a) applies without regard to the provisions
    of any other law relating to the appointment, number, classification, or
    compensation of employees.

    ``Sec. 1602. Basic pay

        ``(a) Authority To Fix Rates of Basic Pay.--The Secretary of Defense
    (subject to the provisions of this section) shall fix the rates of basic
    pay for positions established under section 1601 of this title in
    relation to the rates of basic pay provided in subpart D of part III of
    title 5 for positions subject to that subpart which have corresponding
    levels of duties and responsibilities.
        ``(b) Maximum Rates.--A rate of basic pay fixed under subsection (a)
    for a position established under section 1601 of this title may not
    (except as otherwise provided by law) exceed--
                ``(1) in the case of a Defense Intelligence Senior Executive
            Service position, the maximum rate provided in section 5382 of
            title 5;
                ``(2) in the case of an Intelligence Senior Level position,
            the maximum rate provided in section 5382 of title 5; and
                ``(3) in the case of any other position, the maximum rate
            provided in section 5306(e) of title 5.

        ``(c) Prevailing Rate Systems.--The Secretary of Defense may,
    consistent with section 5341 of title 5, adopt such provisions of that
    title as provide for prevailing rate systems of
    basic pay and may apply those provisions to positions for civilian
    employees in or under which the Department of Defense may employ
    individuals described by section 5342(a)(2)(A) of that title.

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

        ``(a) Additional Compensation Based on Title 5 Authorities.--The
    Secretary of Defense may provide employees in defense intelligence
    positions compensation (in addition to basic pay), including benefits,
    incentives, and allowances, consistent with, and not in excess of the
    level authorized for, comparable positions authorized by title 5.
        ``(b) Allowances Based on Living Costs and Environment.--(1) In
    addition to basic pay, employees in defense intelligence posi

    [[Page 110 STAT. 2747]]

    tions who are citizens or nationals of the United States and are
    stationed outside the continental United States or in Alaska may be paid
    an allowance, in accordance with regulations prescribed by the Secretary
    of Defense, while they are so stationed.
        ``(2) An allowance under this subsection shall be based on--
                ``(A) living costs substantially higher than in the District
            of Columbia;
                ``(B) conditions of environment which (i) differ
            substantially from conditions of environment in the continental
            United States, and (ii) warrant an allowance as a recruitment
            incentive; or
                ``(C) both of the factors specified in subparagraphs (A) and
            (B).

        ``(3) An allowance under this subsection may not exceed the
    allowance authorized to be paid by section 5941(a) of title 5 for
    employees whose rates of basic pay are fixed by statute.''.
        (b) Matters Other Than Pay and Benefits.--Such chapter is further
    amended by inserting after section 1605 the following new sections:

    ``Sec. 1606. Defense Intelligence Senior Executive Service

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

    ``Sec. 1607. Intelligence Senior Level positions

        ``(a) Designation of Positions.--The Secretary of Defense may
    designate as an Intelligence Senior Level position any defense
    intelligence position that, as determined by the Secretary--
                ``(1) is classifiable above grade GS-15 of the General
            Schedule;

    [[Page 110 STAT. 2748]]

                ``(2) does not satisfy functional or program management
            criteria for being designated a Defense Intelligence Senior
            Executive Service position; and
                ``(3) has no more than minimal supervisory responsibilities.

        ``(b) Regulations.--Subsection (a) shall be carried out in
    accordance with regulations prescribed by the Secretary of Defense.

    ``Sec. 1608. Time-limited appointments

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

    ``Sec. 1609. Termination of defense intelligence employees

        ``(a) Termination Authority.--Notwithstanding any other provision of
    law, the Secretary of Defense may terminate the employment of any
    employee in a defense intelligence position if the Secretary--
                ``(1) considers that action to be in the interests of the
            United States; and
                ``(2) determines that the procedures prescribed in other
            provisions of law that authorize the termination of the
            employment of such employee cannot be invoked in a manner
            consistent with the national security.

        ``(b) Finality.--A decision by the Secretary of Defense to terminate
    the employment of an employee under this section is final and may not be
    appealed or reviewed outside the Department of Defense.
        ``(c) Notification to Congressional Committees.--Whenever the
    Secretary of Defense terminates the employment of an employee under the
    authority of this section, the Secretary shall promptly notify the
    congressional oversight committees of such termination.
        ``(d) Preservation of Right To Seek Other Employment.--Any
    termination of employment under this section does not affect the right
    of the employee involved to seek or accept employment with any other
    department or agency of the United States if that employee is declared
    eligible for such employment by the Director of the Office of Personnel
    Management.

    [[Page 110 STAT. 2749]]

        ``(e) Limitation on Delegation.--The authority of the Secretary of
    Defense under this section may be delegated only to the Deputy Secretary
    of Defense, the head of an intelligence component of the Department of
    Defense (with respect to employees of that component), or the Secretary
    of a military department (with respect to employees of that department).
    An action to terminate employment of such an employee by any such
    official may be appealed to the Secretary of Defense.

    ``Sec. 1610. <<NOTE: Regulations.>> Reductions and other adjustments in
                            force

        ``(a) In General.--The Secretary of Defense shall prescribe
    regulations for the separation of employees in defense intelligence
    positions, including members of the Defense Intelligence Senior
    Executive Service and employees in Intelligence Senior Level positions,
    during a reduction in force or other adjustment in force. The
    regulations shall apply to such a reduction in force or other adjustment
    in force notwithstanding sections 3501(b) and 3502 of
    title 5.
        ``(b) Matters To Be Given Effect.--The regulations shall give effect
    to the following:
                ``(1) Tenure of employment.
                ``(2) Military preference, subject to sections 3501(a)(3)
            and 3502(b) of title 5.
                ``(3) The veteran's preference under section 3502(b) of
            title 5.
                ``(4) Performance.
                ``(5) Length of service computed in accordance with the
            second sentence of section 3502(a) of title 5.

        ``(c) Regulations Relating to Defense Intelligence SES.--The
    regulations relating to removal from the Defense Intelligence Senior
    Executive Service in a reduction in force or other adjustment in force
    shall be consistent with section 3595(a) of title 5.
        ``(d) Right of Appeal.--(1) The regulations shall provide a right of
    appeal regarding a personnel action under the regulations. The appeal
    shall be determined within the Department of Defense. An appeal
    determined at the highest level provided in the regulations shall be
    final and not subject to review outside the Department of Defense. A
    personnel action covered by the regulations is not subject to any other
    provision of law that provides appellate rights or procedures.
        ``(2) Notwithstanding paragraph (1), a preference eligible referred
    to in section 7511(a)(1)(B) of title 5 may elect to have an appeal of a
    personnel action taken against the preference eligible under the
    regulation determined by the Merit Systems Protection Board instead of
    having the appeal determined within the Department of Defense. Section
    7701 of title 5 shall apply to any such appeal to the Merit Systems
    Protection Board.
        ``(e) Consultation With OPM.--Regulations under this section shall
    be prescribed in consultation with the Director of the Office of
    Personnel Management.''.
        (c) Transfer of Section 1599.--Subtitle A of title 10, United States
    Code, is amended by transferring section 1599 to chapter 83 of such
    title, inserting such section after section 1610 (as added by subsection
    (b)), redesignating such section as section 1611, and in subsection (f)
    striking out ``means'' and all that follows and inserting in lieu
    thereof ``includes the National Reconnaissance Office and any
    intelligence component of a military department.''.

    [[Page 110 STAT. 2750]]

        (d) Additional Provisions.--Such chapter is further amended by
    inserting after section 1611 (as so transferred and redesignated) the
    following new sections:
    ``Sec. 1612. Merit system principles and civil service
                      protections: applicability

        ``(a) Applicability of Merit System Principles.--Section 2301 of
    title 5 shall apply to the exercise of authority under this subchapter
    (other than sections 1605 and 1611).
        ``(b) Civil Service Protections.--(1) If, in the case of a position
    established under authority other than section 1601(a)(1) of this title
    that is reestablished as an excepted service position under that
    section, the provisions of law referred to in paragraph (2) applied to
    the person serving in that position immediately before the position is
    so reestablished and such provisions of law would not otherwise apply to
    the person while serving in the
    position as so reestablished, then such provisions of law shall, subject
    to paragraph (3), continue to apply to the person with respect
    to service in that position for as long as the person continues to serve
    in the position without a break in service.
        ``(2) The provisions of law referred to in paragraph (1) are the
    following provisions of title 5:
                ``(A) Section 2302, relating to prohibited personnel
            practices.
                ``(B) Chapter 75, relating to adverse actions.

        ``(3)(A) Notwithstanding any provision of chapter 75 of title 5, an
    appeal of an adverse action by an individual employee covered by
    paragraph (1) shall be determined within the Department of Defense if
    the employee so elects.
        ``(B) <<NOTE: Procedures.>> The Secretary of Defense shall prescribe
    the procedures for initiating and determining appeals of adverse actions
    pursuant to elections made under subparagraph (A).

    ``Sec. 1613. Miscellaneous provisions

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

    ``Sec. 1614. Definitions

        ``In this subchapter:
                ``(1) The term `defense intelligence position' means a
            civilian position as an intelligence officer or intelligence
            employee of an intelligence component of the Department of
            Defense or of a military department.
                ``(2) The term `intelligence component of the Department of
            Defense' means any of the following:
                        ``(A) The National Security Agency.
                        ``(B) The Defense Intelligence Agency.

    [[Page 110 STAT. 2751]]

                        ``(C) The National Imagery and Mapping Agency.
                        ``(D) Any other component of the Department of
                    Defense that performs intelligence functions and is
                    designated by the Secretary of Defense as an
                    intelligence component of the Department of Defense.
                        ``(E) Any successor to a component specified in, or
                    designated pursuant to, this paragraph.
                ``(3) The term `congressional oversight committees' means--
                        ``(A) the Committee on Armed Services and the Select
                    Committee on Intelligence of the Senate; and
                        ``(B) the Committee on National Security and the
                    Permanent Select Committee on Intelligence of the House
                    of Representatives.
                ``(4) The term `excepted service' has the meaning given such
            term in section 2103 of title 5.
                ``(5) The term `preference eligible' has the meaning given
            such term in section 2108(3) of title 5.
                ``(6) The term `Senior Executive Service position' has the
            meaning given such term in section 3132(a)(2) of title 5.
                ``(7) The term `collective bargaining agreement' has the
            meaning given such term in section 7103(8) of title 5.''.

        (e) Designation of New Subchapter II.--Chapter 83 of such title is
    further amended by inserting after section 1614 (as added by subsection
    (d)) the following:

             ``SUBCHAPTER II--DEFENSE INTELLIGENCE AGENCY PERSONNEL

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

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

        (a) Repeal of Separate Military Department Authorities.--Section
    1590 of title 10, United States Code, is repealed.
        (b) Repeal of Separate National Security Agency Authorities.--The
    following provisions of law are repealed:
                (1) Sections 2 and 4 of the National Security Agency Act of
            1959 (50 U.S.C. 402 note).
                (2) Section 303 of the Internal Security Act of 1950 (50
            U.S.C. 833).

        (c) Clerical Amendments.--Title 10, United States Code, is amended
    as follows:
                (1) The heading for section 1605 is amended to read as
            follows:
    ``Sec. 1605. Benefits for certain employees assigned outside the
                      United States''.
                (2) The table of sections at the beginning of chapter 81 is
            amended by striking out the items relating to sections 1590 and
            1599.
                (3) The tables of chapters at the beginning of subtitle A,
            and at the beginning of part II of subtitle A, are amended by
            striking out the item relating to chapter 83 and inserting in
            lieu thereof the following:

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

    [[Page 110 STAT. 2752]]

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

    SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

        (a) Applicability of Federal Labor-Management Relations System.--
    Section 7103(a)(3) of title 5, United States Code, is amended--
                (1) by inserting ``or'' at the end of subparagraph (F);
                (2) by striking out ``; or'' at the end of subparagraph (G)
            and inserting in lieu thereof a period; and
                (3) by striking out subparagraph (H).

        (b) Applicability of Authority and Procedures for Imposing Certain
    Adverse Actions.--Section 7511(b)(8) of such title is amended by
    striking out ``the National Security Agency'' and all that follows
    through ``title 10'' and inserting in lieu thereof ``an intelligence
    component of the Department of Defense (as defined in section 1614 of
    title 10), or an intelligence activity of a military department covered
    under subchapter I of chapter 83 of title 10''.

    SEC. 1635. <<NOTE: 10 USC 1593 note.>> EFFECTIVE DATE.

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

       TITLE <<NOTE: Federal Employee Travel Reform Act of 1996.>> XVII--
    FEDERAL EMPLOYEE TRAVEL REFORM

    Sec. 1701. Short title.

                         Subtitle A--Relocation Benefits

    Sec. 1711. Allowance for seeking permanent residence quarters.
    Sec. 1712. Temporary quarters subsistence expenses allowance.
    Sec. 1713. Modification of residence transaction expenses allowance.
    Sec. 1714. Authority to pay for property management services.
    Sec. 1715. Authority to transport a privately owned motor vehicle within
               the
               continental United States.
    Sec. 1716. Authority to pay limited relocation allowances to an employee
               who is performing an extended assignment.
    Sec. 1717. Authority to pay a home marketing incentive.
    Sec. 1718. Revision and reenactment of additional provisions relating to
               relocation expenses.

                      Subtitle B--Miscellaneous Provisions

    Sec. 1721. Repeal of the long-distance telephone call certification
               requirement.
    Sec. 1722. Transfer of authority to prescribe regulations.
    Sec. 1723. Conforming and clerical amendments.
    Sec. 1724. Assessment of cost savings.
    Sec. 1725. Effective date and issuance of regulations.

    SEC. 1701. <<NOTE: 5 USC 5701 note.>> SHORT TITLE.

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

    [[Page 110 STAT. 2753]]

                         Subtitle A--Relocation Benefits

    SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE QUARTERS.

        Section 5724a of title 5, United States Code, is amended to read as
    follows:
    ``Sec. 5724a. Relocation expenses of employees transferred or
                        reemployed

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

        ``(2) Expenses may be allowed under paragraph (1) only for one round
    trip in connection with each change of station of the employee.''.
    SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES
                              ALLOWANCE.

        Section 5724a of title 5, United States Code, as amended by section
    1712, is further amended by adding at the end the following new
    subsection:
        ``(c)(1) An agency may pay to or on behalf of an employee who
    transfers in the interest of the Government--
                ``(A) actual subsistence expenses of the employee and the
            employee's immediate family for a period of up to 60 days while
            the employee or family is occupying temporary quarters when the
            new official station is located within the United States; or
                ``(B) an amount for subsistence expenses instead of the
            actual subsistence expenses authorized in subparagraph (A) of
            this paragraph.

        ``(2) The period authorized in paragraph (1) of this subsection for
    payment of expenses for residence in temporary quarters may be extended
    up to an additional 60 days if the head of the agency concerned or the
    designee of such head of the agency determines that there are compelling
    reasons for the continued occupancy of temporary quarters.
        ``(3) <<NOTE: Regulations.>> The regulations implementing paragraph
    (1)(A) shall prescribe daily rates and amounts for subsistence expenses
    per individual.''.

    [[Page 110 STAT. 2754]]

    SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES
                              ALLOWANCE.

        (a) Expenses of Sale.--Section 5724a of title 5, United States Code,
    as amended by section 1712, is further amended by adding at the end the
    following new subsection:
        ``(d)(1) An agency shall pay to or on behalf of an employee who
    transfers in the interest of the Government, expenses of the sale of the
    residence (or the settlement of an unexpired lease) of the employee at
    the old official station and purchase of a residence at the new official
    station that are required to be paid by the employee, when the old and
    new official stations are located within the United States.
        ``(2) An agency shall pay to or on behalf of an employee who
    transfers in the interest of the Government from a post of duty located
    outside the United States to an official station within the United
    States (other than the official station within the United States from
    which the employee was transferred when assigned to the foreign tour of
    duty)--
                ``(A) expenses required to be paid by the employee for the
            sale of the residence (or the settlement of an unexpired lease)
            of the employee at the old official station from which the
            employee was transferred when the employee was assigned to the
            post of duty located outside the United States; and
                ``(B) expenses required to be paid by the employee for the
            purchase of a residence at the new official station within the
            United States.

        ``(3) Reimbursement of expenses under paragraph (2) of this
    subsection shall not be allowed for any sale (or settlement of an
    unexpired lease) or purchase transaction that occurs prior to official
    notification that the employee's return to the United States would be to
    an official station other than the official station from which the
    employee was transferred when assigned to the post of duty outside the
    United States.
        ``(4) Reimbursement for brokerage fees on the sale of the residence
    and other expenses under this subsection may not exceed those
    customarily charged in the locality where the residence is located.
        ``(5) Reimbursement may not be made under this subsection for losses
    incurred by the employee on the sale of the residence.
        ``(6) <<NOTE: Applicability.>> This subsection applies regardless of
    whether title to the residence or the unexpired lease is--
                ``(A) in the name of the employee alone;
                ``(B) in the joint names of the employee and a member of the
            employee's immediate family; or
                ``(C) in the name of a member of the employee's immediate
            family alone.

        ``(7)(A) In connection with the sale of the residence at the old
    official station, reimbursement under this subsection shall not exceed
    10 percent of the sale price.
        ``(B) In connection with the purchase of a residence at the new
    official station, reimbursement under this subsection shall not exceed 5
    percent of the purchase price.''.
        (b) Relocation Services.--Section 5724c of title 5, United State
    Code, is amended to read as follows:

    [[Page 110 STAT. 2755]]

    ``Sec. 5724c. Relocation services

        ``Under regulations prescribed under section 5738 of this title,
    each agency may enter into contracts to provide relocation services to
    agencies and employees for the purpose of carrying out this subchapter.
    An agency may pay a fee for such services. Such services include
    arranging for the purchase of a transferred employee's residence.''.
    SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT
                              SERVICES.

        Section 5724a of title 5, United States Code, as amended by section
    1713, is further amended--
                (1) in subsection (d), by adding at the end the following:

        ``(8) An agency may pay to or on behalf of an employee who transfers
    in the interest of the Government expenses of property management
    services, instead of expenses under paragraph (2) or (3) of this
    subsection for sale of the employee's residence, when the agency
    determines that such transfer is advantageous and cost-effective for the
    Government.''; and
                (2) by adding at the end the following new subsection:

        ``(e) An agency may pay to or on behalf of an employee who transfers
    in the interest of the Government, the expenses of property management
    services when the employee transfers to a post of duty outside the
    United States. Such payment shall terminate upon return of the employee
    to an official station within the United States.''.
    SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR VEHICLE
                              WITHIN THE CONTINENTAL UNITED STATES.

        (a) In General.--Section 5727 of title 5, United States Code, is
    amended--
                (1) by redesignating subsections (c) through (e) as
            subsections (d) through (f), respectively;
                (2) by inserting after subsection (b) the following new
            subsection:

        ``(c) Under regulations prescribed under section 5738 of this title,
    the privately owned motor vehicle or vehicles of an employee, including
    a new appointee or a student trainee for whom travel and transportation
    expenses are authorized under section 5723 of this title, may be
    transported at Government expense to a new official station of the
    employee when the agency determines that such transport is advantageous
    and cost-effective to the Government.''; and
                (3) in subsection (e) (as so redesignated), by inserting
            ``or (c)'' after ``subsection (b)''.

        (b) Availability of Appropriations.--(1) Section 5722(a) of title 5,
    United States Code, is amended--
                (A) by striking out ``and'' at the end of paragraph (1);
                (B) by striking out the period at the end of paragraph (2)
            and inserting in lieu thereof ``; and''; and
                (C) by adding at the end the following:
                ``(3) the expenses of transporting a privately owned motor
            vehicle as authorized under section 5727(c) of this title.''.

        (2) Section 5723(a) of title 5, United States Code, is amended--
                (A) by striking out ``and'' at the end of paragraph (1);
                (B) by inserting ``and'' after the semicolon at the end of
            paragraph (2); and

    [[Page 110 STAT. 2756]]

                (C) by adding at the end the following:
                ``(3) the expenses of transporting a privately owned motor
            vehicle as authorized under section 5727(c) of this title;''.
    SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO AN
                              EMPLOYEE WHO IS PERFORMING AN EXTENDED
                              ASSIGNMENT.

        Subchapter II of chapter 57 of title 5, United States Code, as
    amended by section 1605, is further amended by adding at the end the
    following new section:
    ``Sec. 5737. Relocation expenses of an employee who is performing
                      an extended assignment

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

        ``(b) An agency shall not make payment under this section to or on
    behalf of the employee for expenses incurred after termination of the
    temporary assignment.''.

    [[Page 110 STAT. 2757]]

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

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

    ``Sec. 5756. <<NOTE: Regulations.>> Home marketing incentive payment

        ``(a) Under regulations prescribed under subsection (b), an agency
    may pay to an employee who transfers in the interest of the Government
    an amount to encourage the employee to aggressively market the
    employee's residence at the official station from which transferred
    when--
                ``(1) the residence is entered into a relocation services
            program established under a contract in accordance with section
            5724c of this title to arrange for the purchase of the
            residence;
                ``(2) the employee finds a buyer who completes the purchase
            of the residence through the program; and
                ``(3) the sale of the residence results in a reduced cost to
            the Government.

        ``(b)(1) The Administrator of General Services shall prescribe
    regulations to carry out this section.
        ``(2) The regulations shall include a limitation on the maximum
    amount payable with respect to an employee's residence. The
    Administrator shall establish the limitation in consultation with the
    Director of the Office of Management and Budget. For fiscal years 1997
    and 1998, the maximum amount shall be the amount equal to five percent
    of the sale price of the residence.''.
    SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS
                              RELATING TO RELOCATION EXPENSES.

        Section 5724a of title 5, United States Code, as amended by section
    1714, is further amended by adding at the end the following new
    subsections:
        ``(f)(1) Subject to paragraph (2), an employee who is reimbursed
    under subsections (a) through (e) of this section or section 5724(a) of
    this title is entitled to an amount for miscellaneous expenses--
                ``(A) not to exceed two weeks' basic pay, if such employee
            has an immediate family; or
                ``(B) not to exceed one week's basic pay, if such employee
            does not have an immediate family.

        ``(2) Amounts paid under paragraph (1) may not exceed amounts
    determined at the maximum rate payable for a position at GS-13 of the
    General Schedule.
        ``(g) A former employee separated by reason of reduction in force or
    transfer of function who within one year after the separation is
    reemployed by a nontemporary appointment at a different geographical
    location from that where the separation occurred, may be allowed and
    paid the expenses authorized by sections 5724, 5725, 5726(b), and 5727
    of this title, and may receive the benefits authorized by subsections
    (a) through (f) of this section, in the same manner as though the
    employee had been transferred in the interest of the Government without
    a break in service to the location of reemployment from the location
    where separated.
        ``(h) Payments for subsistence expenses, including amounts in lieu
    of per diem or actual subsistence expenses or a combination thereof,
    authorized under this section may not exceed the maximum payment allowed
    under regulations which implement section 5702 of this title.

    [[Page 110 STAT. 2758]]

        ``(i) Subsections (a), (b), and (c) shall be implemented under
    regulations issued under section 5738 of this title.

        ``(j) For purposes of subsections (c), (d), and (e), the term
    `United States' includes the District of Columbia, the Commonwealth of
    Puerto Rico, the Commonwealth of the Northern Mariana Islands, the
    territories and possessions of the United States, and the areas and
    installations in the Republic of Panama that are made available to the
    United States pursuant to the Panama Canal Treaty of 1977 and related
    agreements (as described in section 3(a) of the Panama Canal Act of 1979
    (22 U.S.C. 3602(a))).''.

                      Subtitle B--Miscellaneous Provisions

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

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

    SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

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

    ``Sec. 5738. Regulations

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

    SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

        (a) Cross References.--(1) Title 5, United States Code, is amended
    as follows:
                (A) Section 3375 is amended--
                        (i) in subsection (a)(3), by striking out ``section
                    5724a(a)(1)'' and inserting in lieu thereof ``section
                    5724a(a)'';
                        (ii) in subsection (a)(4), by striking out ``section
                    5724a(a)(3)'' and inserting in lieu thereof ``section
                    5724a(c)''; and
                        (iii) in subsection (a)(5), by striking out
                    ``section 5724a(b)'' and inserting in lieu thereof
                    ``section 5724a(g)''; and

    [[Page 110 STAT. 2759]]

                (B) Section 5724(e) is amended by striking out ``section
            5724a(a), (b)'' and inserting in lieu thereof ``section 5724a
            (a) through (f)''.

        (2) Section 707 of title 38, United States Code, is amended--
                (A) in subsection (a)(6), by striking out ``Section
            5724a(a)(3)'' and inserting in lieu thereof ``Section
            5724a(c)''; and
                (B) in subsection (a)(7), by striking out ``Section
            5724a(a)(4)'' and inserting in lieu thereof ``Section
            5724a(d)''.

        (3) The Public Health Service Act is amended as follows:
                (A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A)) is
            amended by striking out ``5724a(a)(1), 5724a(a)(3)'' and
            inserting in lieu thereof ``5724a(a), 5724a(c)''.
                (B) Section 925(f)(2)(A) (42 U.S.C. 299c-4(f)(2)(A)) is
            amended by striking out ``5724a(a)(1), 5724a(a)(3)'' and
            inserting in lieu thereof ``5724a(a), 5724a(c)''.

        (b) Regulations.--Title 5, United States Code, is amended as
    follows:
                (1) Sections 5722, 5723, 5724, (in subsections (a), (b), and
            (c)), 5724b, 5726 (in subsections (b) and (c)), 5727(b), 5728
            (in subsections (a), (b), and (c)(1)), and 5729 (in subsections
            (a) and (b)) of title 5, United States Code, are amended by
            striking out ``Under such regulations as the President may
            prescribe'', and inserting in lieu thereof ``Under regulations
            prescribed under section 5738 of this title''.
                (2) Section 5724 of title 5, United States Code, is
            amended--
                        (A) by striking out ``under regulations prescribed
                    by the President'' each place it appears in subsections
                    (c) and (e) and inserting in lieu thereof ``under
                    regulations prescribed under section 5738 of this
                    title''; and
                        (B) in subsection (f), by striking out ``under the
                    regulations of the President'' and inserting in lieu
                    thereof ``under regulations prescribed under section
                    5738 of this title''.
                (3) Section 5726(a) of title 5, United States Code, is
            amended by striking out ``as the President may by regulation
            authorize'' and inserting in lieu thereof ``as authorized under
            regulations prescribed under section 5738 of this title''.
                (4) Section 5731(a) of title 5, United States Code, is
            amended by striking out ``in accordance with regulations
            prescribed by the President'' and inserting in lieu thereof ``in
            accordance with regulations prescribed under section 5738 of
            this title''.

        (c) Clerical Amendments.--The table of sections at the beginning of
    chapter 57 of title 5, United States Code, as amended by section 1605,
    is further amended--
                (1) by inserting after the item relating to section 5736 the
            following:

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

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

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

    SEC. 1724. <<NOTE: 5 USC 5722 note.>> ASSESSMENT OF COST SAVINGS.

        No later than one year after the effective date set forth in section
    1725(a), the Comptroller General shall submit to the

    [[Page 110 STAT. 2760]]

    Committee on Governmental Affairs of the Senate and the Committee on
    Government Reform and Oversight of the House of Representatives an
    assessment of the costs of Federal travel administration that are saved
    as a result of the amendments made by this title and the regulations
    prescribed to carry out the amendments.

    SEC. 1725. <<NOTE: 5 USC 5722 note.>> EFFECTIVE DATE AND ISSUANCE OF
                REGULATIONS.

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

     TITLE <<NOTE: Delaware.>> XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE
    ASSOCIATION

    Sec. 1801. Recognition and grant of Federal charter.
    Sec. 1802. Powers.
    Sec. 1803. Purposes.
    Sec. 1804. Service of process.
    Sec. 1805. Membership.
    Sec. 1806. Board of directors.
    Sec. 1807. Officers.
    Sec. 1808. Restrictions.
    Sec. 1809. Liability.
    Sec. 1810. Maintenance and inspection of books and records.
    Sec. 1811. Audit of financial transactions.
    Sec. 1812. Annual report.
    Sec. 1813. Reservation of right to alter, amend, or repeal charter.
    Sec. 1814. Tax-exempt status required as condition of charter.
    Sec. 1815. Termination.
    Sec. 1816. Definition of State.

    SEC. 1801. <<NOTE: 36 USC 5601.>> RECOGNITION AND GRANT OF FEDERAL
                CHARTER.

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

    SEC. 1802. <<NOTE: 36 USC 5602.>> POWERS.

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

    SEC. 1803. <<NOTE: 36 USC 5603.>> PURPOSES.

        The purposes of the association are those provided in its bylaws and
    articles of incorporation and shall include the following:
                (1) Upholding and defending the Constitution of the United
            States.
                (2) Aiding and maintaining an adequate naval defense for the
            United States.
                (3) Assisting the recruitment of the best personnel
            available for the United States Navy, United States Marine
            Corps, and United States Coast Guard.
                (4) Providing for the welfare of the personnel who serve in
            the United States Navy, United States Marine Corps, and United
            States Coast Guard.
                (5) Continuing to serve loyally the United States Navy,
            United States Marine Corps, and United States Coast Guard.

    [[Page 110 STAT. 2761]]

                (6) Preserving the spirit of shipmanship by providing
            assistance to shipmates and their families.
                (7) Instilling love of the United States and the flag and
            promoting soundness of mind and body in the youth of the United
            States.

    SEC. 1804. <<NOTE: 36 USC 5604.>> SERVICE OF PROCESS.

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

    SEC. 1805. <<NOTE: 36 USC 5605.>> MEMBERSHIP.

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

    SEC. 1806. <<NOTE: 36 USC 5606.>> BOARD OF DIRECTORS.

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

    SEC. 1807. <<NOTE: 36 USC 5607.>> OFFICERS.

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

    SEC. 1808. <<NOTE: 36 USC 5608.>> RESTRICTIONS.

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

    [[Page 110 STAT. 2762]]

    tion, the association may not discriminate on the basis of race, color,
    religion, sex, handicap, age, or national origin.

    SEC. 1809. <<NOTE: 36 USC 5609.>> LIABILITY.

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

    SEC. 1810. <<NOTE: 36 USC 5610.>> MAINTENANCE AND INSPECTION OF BOOKS
                AND RECORDS.

        (a) Books and Records of Account.--The association shall keep
    correct and complete books and records of account and minutes of any
    proceeding of the association involving any of its members, the board of
    directors, or any committee having authority under the board of
    directors.

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

    SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

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

    SEC. 1812. <<NOTE: 36 USC 5611.>> ANNUAL REPORT.

        The association shall annually submit to Congress a report
    concerning the activities of the association during the preceding fiscal
    year. The annual report shall be submitted on the same date as the
    report of the audit required by reason of the amendment made in section
    1811. The annual report shall not be printed as a public document.
    SEC. 1813. RESERVATION <<NOTE: 36 USC 5612.>> OF RIGHT TO ALTER,
                              AMEND, OR REPEAL CHARTER.

        The right to alter, amend, or repeal this title is expressly
    reserved to Congress.
    SEC. 1814. TAX-EXEMPT <<NOTE: 36 USC 5613.>> STATUS REQUIRED AS
                              CONDITION OF
                              CHARTER.

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

    SEC. 1815. <<NOTE: 36 USC 5614.>> TERMINATION.

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

    SEC. 1816. <<NOTE: 36 USC 5615.>> DEFINITION OF STATE.

        For purposes of this title, the term ``State'' includes the
    District of Columbia, the Commonwealth of Puerto Rico, the

    [[Page 110 STAT. 2763]]

    Commonwealth of the Northern Mariana Islands, and the territories and
    possessions of the United States.

        <<NOTE: Military Construction Authorization Act for Fiscal Year
    1997.>> DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

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

                                 TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Land acquisition, National Ground Intelligence Center,
                          Charlottesville, Virginia.
    SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION
                              PROJECTS.

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

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

    [[Page 110 STAT. 2764]]

    CONUS Classified.............  Classified Locations.....      $4,600,000
                                                             ---------------
                                       Total:...............    $447,250,000
    ------------------------------------------------------------------------

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

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

    SEC. 2102. FAMILY HOUSING.

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

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

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

    SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(5)(A), the Secretary of the Army may

    [[Page 110 STAT. 2765]]

    improve existing military family housing units in an amount not to
    exceed $105,350,000.

    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1996, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Army in the total amount of $1,942,557,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $394,250,000.
                (2) For military construction projects outside the United
            States authorized by section 2101(b), $121,800,000.
                (3) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $5,000,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $50,538,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $158,503,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,212,466,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2101 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);
                (2) $31,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of the National Range
            Control Center at White Sands Missile Range, New Mexico); and
                (3) $22,000,000 (the balance of the amount authorized under
            section 2101(a) for the whole barracks complex renewal at Fort
            Knox, Kentucky).
    SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE CENTER,
                              CHARLOTTESVILLE, VIRGINIA.

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

    [[Page 110 STAT. 2766]]

    tion of real property pursuant to the authorization in subsection (a).

                                TITLE XXII--NAVY

    Sec. 2201.  Authorized Navy construction and land acquisition projects.
    Sec. 2202.  Family housing.
    Sec. 2203.  Improvements to military family housing units.
    Sec. 2204.  Authorization of appropriations, Navy.
    Sec. 2205.  Beach replenishment, Naval Air Station, North Island,
               California.

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

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

                         Navy: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       location             Amount
    ------------------------------------------------------------------------
    Arizona........................  Navy Detachment, Camp        $3,920,000
                                      Navajo.
    California.....................  Marine Corps Air-Ground      $4,020,000
                                      Combat Center,
                                      Twentynine Palms......
                                     Marine Corps Air             $6,240,000
                                      Station, Camp
                                      Pendleton.............
                                     Marine Corps Base, Camp     $51,630,000
                                      Pendleton.............
                                     Marine Corps Recruit         $8,150,000
                                      Detachment, San Diego.
                                     Naval Air Station,          $86,502,000
                                      North Island.
                                     Naval Command Control &      $1,960,000
                                      Ocean Surveillance
                                      Center, San Diego.....
                                     Naval Facility, San         $17,000,000
                                      Clemente Island.
                                     Naval Station, San           $7,050,000
                                      Diego.
    Connecticut....................  Naval Submarine Base,       $13,830,000
                                      New London.
    District of Columbia...........  Naval District,             $19,300,000
                                      Washington.
    Florida........................  Naval Air Station, Key       $2,250,000
                                      West.
                                     Naval Station, Mayport.      $2,800,000
    Georgia........................  Naval Submarine Base,        $1,550,000
                                      Kings Bay.
    Hawaii.........................  Marine Corps, Air           $20,080,000
                                      Station, Kaneohe Bay.
                                     Naval Station, Pearl        $19,600,000
                                      Harbor.
                                     Naval Submarine Base,       $35,890,000
                                      Pearl Harbor.
    Idaho..........................  Naval Surface Warfare        $7,150,000
                                      Center, Bayview.
    Illinois.......................  Naval Hospital, Great       $15,200,000
                                      Lakes.

    [[Page 110 STAT. 2767]]

                                     Naval Training Center,      $22,900,000
                                      Great Lakes.
    Indiana........................  Naval Surface Warfare        $5,000,000
                                      Center, Crane.
    Maryland.......................  Naval Air Warfare            $1,270,000
                                      Center, Patuxent River
                                     United States Naval         $10,480,000
                                      Academy.
    Mississippi....................  Navy Project, Stennis        $7,960,000
                                      Space Center.
    Nevada.........................  Naval Air Station,          $21,630,000
                                      Fallon.
    North Carolina.................  Marine Corps Air             $1,630,000
                                      Station, Cherry Point.
                                     Marine Corps Air            $20,290,000
                                      Station, New River.
                                     Marine Corps Base, Camp     $20,750,000
                                      Lejeune.
    Pennsylvania...................  Philadelphia Naval           $8,300,000
                                      Shipyard.
    South Carolina.................  Marine Corps Recruit         $2,540,000
                                      Depot, Parris Island..
    Texas..........................  Naval Air Station,           $1,810,000
                                      Kingsville.
                                     Naval Station,              $16,850,000
                                      Ingleside.
    Virginia.......................  Armed Forces Staff          $12,900,000
                                      College, Norfolk......
                                     Marine Corps Combat         $14,570,000
                                      Development Command,
                                      Quantico..............
                                     Naval Station, Norfolk.     $56,120,000
                                     Naval Surface Warfare        $8,030,000
                                      Center, Dahlgren.
    Washington.....................  Naval Station, Everett.     $25,740,000
                                     Naval Undersea Warfare       $6,800,000
                                      Center, Keyport.......
    CONUS Various..................  Defense access roads...        $300,000
                                                             ---------------
                                         Total:.............    $589,992,000
    ------------------------------------------------------------------------

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

                         Navy: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      location             Amount
    ------------------------------------------------------------------------
    Bahrain........................  Administrative Support       $5,980,000
                                      Unit, Bahrain.
    Greece.........................  Naval Support Activity,      $7,050,000
                                      Souda Bay.
    Italy..........................  Naval Air Station,          $15,700,000
                                      Sigonella.
                                     Naval Support Activity,      $8,620,000
                                      Naples.
    Puerto Rico....................  Naval Station,              $23,600,000
                                      Roosevelt Roads.

    [[Page 110 STAT. 2768]]

    United Kingdom.................  Joint Maritime               $4,700,000
                                      Communications Center,
                                      St. Mawgan............
                                                             ---------------
                                         Total:.............     $65,650,000
    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

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

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                          Installation                   Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Arizona.................................  Marine Corps Air Station,   Ancillary Facility........        $709,000
                                               Yuma.....................
    California..............................  Marine Corps Air-Ground     Ancillary Facilities......      $2,938,000
                                               Combat Center, Twentynine
                                               Palms....................
                                              Marine Corps Base, Camp     202 Units.................     $29,483,000
                                               Pendleton................
                                              Naval Air Station, Lemoore  276 Units.................     $39,837,000
                                              Navy Public Works Center,   366 Units.................     $48,719,000
                                               San Diego................
    Florida.................................  Naval Station, Mayport....  100 Units.................     $10,000,000
    Hawaii..................................  Marine Corps Air Station,   54 Units..................     $11,676,000
                                               Kaneohe Bay..............
                                              Navy Public Works Center,   264 Units.................     $52,586,000
                                               Pearl Harbor.............
    Maine...................................  Naval Air Station           92 Units..................     $10,925,000
                                               Brunswick................
    Maryland................................  Naval Air Warfare Center,   Ancillary Facility........      $1,233,000
                                               Patuxent River...........
    North Carolina..........................  Marine Corps Base, Camp     Ancillary Facility........        $845,000
                                               Lejeune..................
                                              Marine Corps Base, Camp     94 Units..................     $10,110,000
                                               Lejeune..................

    [[Page 110 STAT. 2769]]

    South Carolina..........................  Marine Corps Air Station,   140 Units.................     $14,000,000
                                               Beaufort.................
    Texas...................................  Corpus Christi Naval        104 Units.................     $11,675,000
                                               Complex..................
                                              Naval Air Station,          48 Units..................      $7,550,000
                                               Kingsville...............
    Virginia................................  AEGIS Combat Systems        20 Units..................      $2,975,000
                                               Center, Wallops Island...
                                              Naval Security Group        Ancillary Facility........        $741,000
                                               Activity, Northwest......
    Washington..............................  Naval Station, Everett....  100 Units.................     $15,015,000
                                              Naval Submarine Base,       Ancillary Facility........        $934,000
                                               Bangor...................
                                                                                                     ---------------
                                                                              Total:................    $281,951,000
    ----------------------------------------------------------------------------------------------------------------

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

    SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1996, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Navy in the total amount of $2,213,731,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $579,312,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $51,550,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $5,115,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $49,927,000.
                (5) For military family housing functions:

    [[Page 110 STAT. 2770]]

                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $499,886,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $1,014,241,000.
                (6) For the construction of a bachelor enlisted quarters at
            the Naval Construction Battalion Center, Port Hueneme,
            California, authorized by section 2201(a) of the Military
            Construction Authorization Act for Fiscal Year 1996 (division B
            of Public Law 104-106; 110 Stat. 525), $7,700,000.
                (7) For the construction of a Strategic Maritime Research
            Center at the Naval War College, Newport, Rhode Island,
            authorized by section 2201(a) of the Military Construction
            Authorization Act for Fiscal Year 1995 (division B of Public Law
            103-337; 108 Stat. 3031), $8,000,000.
                (8) For the construction of the large anachoic chamber
            facility at the Patuxent River Naval Warfare Center, Aircraft
            Division, Maryland, authorized by section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 1993
            (division B of Public Law 102-484; 106 Stat. 2590), $10,000,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2201 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);
                (2) $5,200,000 (the balance of the amount authorized under
            section 2201(a) for the construction of a bachelors enlisted
            quarters at Naval Hospital, Great Lakes, Illinois);
                (3) $5,480,000 (the balance of the amount authorized under
            section 2201(a) for the construction of a chiller system upgrade
            at the United States Naval Academy, Maryland); and
                (4) $14,100,000 (the balance of the amount authorized under
            section 2201(b) for the construction of a bachelor enlisted
            quarters at Naval Station, Roosevelt Roads, Puerto Rico).

        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (8) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced by
    $12,000,000, which represents the combination of project savings
    resulting from favorable bids, reduced overhead costs, and cancellations
    due to force structure changes.
    SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH ISLAND,
                              CALIFORNIA.

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

    [[Page 110 STAT. 2771]]

        (b) Activities Pending Agreement.--The Secretary shall not delay
    commencement of, or activities under, the construction project described
    in subsection (a), including the beach replenishment
    portion of the project, pending the execution of the cost-sharing
    agreement.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
                          projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Elimination of authority to carry out fiscal year 1995
                          project, Spangdahlem Air Force Base, Germany.

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

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

                       Air Force: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Maxwell Air Force Base.      $7,875,000
    Alaska.........................  Elmendorf Air Force         $21,530,000
                                      Base.
                                     Eielson Air Force Base.      $3,900,000
                                     King Salmon Air Force        $5,700,000
                                      Base.
    Arizona........................  Davis-Monthan Air Force      $9,920,000
                                      Base.
                                     Luke Air Force Base....      $6,700,000
    Arkansas.......................  Little Rock Air Force       $18,105,000
                                      Base.
    California.....................  Beale Air Force Base...     $14,425,000
                                     Edwards Air Force Base.     $20,080,000
                                     Travis Air Force Base..     $14,980,000
                                     Vandenberg Air Force         $3,290,000
                                      Base.
    Colorado.......................  Buckley Air National        $17,960,000
                                      Guard Base.
                                     Falcon Air Force             $2,095,000
                                      Station.
                                     Peterson Air Force Base     $20,720,000
                                     United States Air Force     $12,165,000
                                      Academy.
    Delaware.......................  Dover Air Force Base...     $19,980,000
    Florida........................  Eglin Air Force Base...      $4,590,000
                                     Eglin Auxiliary Field 9      $6,825,000
                                     Patrick Air Force Base.      $2,595,000
                                     Tyndall Air Force Base.      $3,600,000
    Georgia........................  Moody Air Force Base...      $3,350,000
                                     Robins Air Force Base..     $25,045,000
    Idaho..........................  Mountain Home Air Force     $15,945,000
                                      Base.
    Kansas.........................  McConnell Air Force         $19,130,000
                                      Base.
    Louisiana......................  Barksdale Air Force          $4,890,000
                                      Base.

    [[Page 110 STAT. 2772]]

    Maryland.......................  Andrews Air Force Base.      $8,140,000
    Mississippi....................  Keesler Air Force Base.     $14,465,000
    Montana........................  Malstrom Air Force Base      $6,300,000
    Nevada.........................  Indian Springs Air           $4,690,000
                                      Force Auxiliary Air
                                      Field.................
                                     Nellis Air Force Base..      $9,900,000
    New Mexico.....................  Cannon Air Force Base..      $7,100,000
                                     Kirtland Air Force Base     $10,000,000
    New Jersey.....................  McGuire Air Force Base.      $8,080,000
    North Carolina.................  Pope Air Force Base....      $5,915,000
                                     Seymour Johnson Air         $11,280,000
                                      Force Base.
    North Dakota...................  Grand Forks Air Force       $12,470,000
                                      Base.
                                     Minot Air Force Base...      $3,940,000
    Ohio...........................  Wright-Patterson Air         $7,400,000
                                      Force Base.
    Oklahoma.......................  Tinker Air Force Base..      $9,880,000
    South Carolina.................  Charleston Air Force        $37,410,000
                                      Base.
                                     Shaw Air Force Base....     $14,465,000
    South Dakota...................  Ellsworth Air Force          $4,150,000
                                      Base.
    Tennessee......................  Arnold Engineering          $12,481,000
                                      Development Center....
    Texas..........................  Brooks Air Force Base..      $5,400,000
                                     Dyess Air Force Base...     $12,295,000
                                     Kelly Air Force Base...      $3,250,000
                                     Lackland Air Force Base      $9,413,000
                                     Sheppard Air Force Base      $9,400,000
    Utah...........................  Hill Air Force Base....      $3,690,000
    Virginia.......................  Langley Air Force Base.      $8,005,000
    Washington.....................  Fairchild Air Force         $18,155,000
                                      Base.
                                     McChord Air Force Base.     $57,065,000
    Wyoming........................  F.E. Warren Air Force        $3,700,000
                                      Base.
                                                             ---------------
                                         Total:.............    $603,834,000
    ------------------------------------------------------------------------

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

                      Air Force: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      location             Amount
    ------------------------------------------------------------------------
    Germany........................  Ramstein Air Force Base      $5,370,000
                                     Spangdahlem Air Base...      $1,890,000
    Italy..........................  Aviano Air Base........     $10,060,000
    Korea..........................  Osan Air Base..........      $9,780,000
    Turkey.........................  Incirlik Air Base......      $7,160,000
    United Kingdom.................  Croughton Royal Air          $1,740,000
                                      Force Base.
                                     Lakenheath Royal Air        $17,525,000
                                      Force Base.

    [[Page 110 STAT. 2773]]

                                     Mildenhall Royal Air         $6,195,000
                                      Force Base.
    Overseas Classified............  Classified Locations...     $18,395,000
                                                             ---------------
                                         Total:.............     $78,115,000
    ------------------------------------------------------------------------

    SEC. 2302. FAMILY HOUSING.

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

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

    [[Page 110 STAT. 2774]]

    Washington..............................  McChord Air Force Base....  50 Units..................      $5,659,000
                                                                                                     ---------------
                                                                              Total:................    $184,516,000
    ----------------------------------------------------------------------------------------------------------------

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

    SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1996, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Air Force in the total amount of $1,894,594,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $603,834,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $78,115,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $9,328,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $50,687,000.
                (5) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $317,756,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $829,474,000.
                (6) For the construction of a corrosion control facility at
            Tinker Air Force Base, Oklahoma, authorized by section 2301(a)
            of the Military Construction Authorization Act for Fiscal Year
            1996 (division B of Public Law 104-106; 110 Stat. 530),
            $5,400,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2301 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).

    [[Page 110 STAT. 2775]]

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

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

                          TITLE XXIV--DEFENSE AGENCIES

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

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

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

                   Defense Agencies: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      location             Amount
    ------------------------------------------------------------------------
    Chemical Demilitarization        Pueblo Chemical            $179,000,000
     Program.......................   Activity, Colorado....
    Defense Finance & Accounting     Charleston, South            $6,200,000
     Service.......................   Carolina..............
                                     Fort Sill, Oklahoma....     $12,864,000
                                     Gentile Air Force           $11,400,000
                                      Station, Ohio.........
                                     Griffiss Air Force          $10,200,000
                                      Base, New York........
                                     Loring Air Force Base,       $6,900,000
                                      Maine.................
                                     Naval Training Center,       $2,600,000
                                      Orlando, Florida......

    [[Page 110 STAT. 2776]]

                                     Norton Air Force Base,      $13,800,000
                                      California............
                                     Offutt Air Force Base,       $7,000,000
                                      Nebraska..............
                                     Rock Island Arsenal,        $14,400,000
                                      Illinois..............
    Defense Intelligence Agency....  Bolling Air Force Base,      $6,790,000
                                      District of Columbia..
    Defense Logistics Agency.......  Altus Air Force Base,        $3,200,000
                                      Oklahoma..............
                                     Andrews Air Force Base,     $12,100,000
                                      Maryland..............
                                     Barksdale Air Force          $4,300,000
                                      Base, Louisiana.......
                                     Defense Construction           $600,000
                                      Supply Center,
                                      Columbus, Ohio........
                                     Defense Distribution,       $15,700,000
                                      San Diego, California.
                                     Elmendorf Air Force         $21,000,000
                                      Base, Alaska..........
                                     McConnell Air Force          $2,200,000
                                      Base, Kansas..........
                                     Naval Air Facility, El       $5,700,000
                                      Centro, California....
                                     Naval Air Station,           $2,100,000
                                      Fallon, Nevada........
                                     Naval Air Station,           $1,500,000
                                      Oceana, Virginia......
                                     Shaw Air Force Base,         $2,900,000
                                      South Carolina........
                                     Travis Air Force Base,      $15,200,000
                                      California............
    Defense Medical Facility Office  Andrews Air Force Base,     $15,500,000
                                      Maryland..............
                                     Charleston Air Force         $1,800,000
                                      Base, South Carolina..
                                     Fort Bliss, Texas......      $6,600,000
                                     Fort Bragg, North           $11,400,000
                                      Carolina..............
                                     Fort Hood, Texas.......      $1,950,000
                                     Marine Corps Base, Camp      $3,300,000
                                      Pendleton, California.
                                     Maxwell Air Force Base,     $25,000,000
                                      Alabama...............
                                     Naval Air Station, Key      $15,200,000
                                      West, Florida.........
                                     Naval Air Station,           $1,250,000
                                      Norfolk, Virginia.....
                                     Naval Air Station,          $38,000,000
                                      Lemoore, California...
    Special Operations Command.....  Fort Bragg, North           $14,000,000
                                      Carolina..............

    [[Page 110 STAT. 2777]]

                                     Fort Campbell, Kentucky      $4,200,000
                                     MacDill Air Force Base,      $9,600,000
                                      Florida...............
                                     Naval Amphibious Base,       $7,700,000
                                      Coronado, California..
                                     Naval Station, Ford         $12,800,000
                                      Island, Pearl Harbor,
                                      Hawaii................
                                                             ---------------
                                         Total:.............    $525,454,000
    ------------------------------------------------------------------------

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

                   Defense Agencies: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      location             Amount
    ------------------------------------------------------------------------
    Defense Logistics Agency.......  Moron Air Base, Spain..     $12,958,000
                                     Naval Air Station,           $6,100,000
                                      Sigonella, Italy......
    Defense Medical Facility Office  Administrative Support       $4,600,000
                                      Unit, Bahrain, Bahrain
                                                             ---------------
                                         Total:.............     $23,658,000
    ------------------------------------------------------------------------

    SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

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

    SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

    SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

        (a) Availability of Funds for Credit to Family Housing Improvement
    Fund.--(1) Of the amount authorized to be appropriated pursuant to
    section 2406(a)(14)(C), $25,000,000 shall be available for credit to the
    Department of Defense Family Housing Improvement Fund established by
    section 2883(a)(1) of title 10, United States Code.
        (2) Of the amount authorized to be appropriated pursuant to section
    2406(a)(14)(D), $5,000,000 shall be available for credit

    [[Page 110 STAT. 2778]]

    to the Department of Defense Military Unaccompanied Housing Improvement
    Fund established by section 2883(a)(2) of such title.
        (b) Use of Funds.--(1) The Secretary of Defense may use funds
    credited to the Department of Defense Family Housing Improvement Fund
    under subsection (a)(1) to carry out
    any activities authorized by subchapter IV of chapter 169 of such title
    with respect to military family housing.

        (2) The Secretary of Defense may use funds credited to the
    Department of Defense Military Unaccompanied Housing Improvement Fund
    under subsection (a)(2) to carry out any activities authorized by
    subchapter IV of chapter 169 of such title with respect to military
    unaccompanied housing.

    SEC. 2405. ENERGY CONSERVATION PROJECTS.

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

    SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1996, for military
    construction, land acquisition, and military family housing functions of
    the Department of Defense (other than the military departments), in the
    total amount of $3,379,703,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $344,854,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(b), $23,658,000.
                (3) For military construction projects at Naval Hospital,
            Portsmouth, Virginia, hospital replacement, authorized by
            section 2401(a) of the Military Construction Authorization Act
            for Fiscal Years 1990 and 1991 (division B of Public Law 101-
            189; 103 Stat. 1640), $24,000,000.
                (4) For military construction projects at Walter Reed Army
            Institute of Research, Maryland, hospital replacement,
            authorized by section 2401(a) of the Military Construction
            Authorization Act for Fiscal Year 1993 (division B of Public Law
            102-484; 106 Stat. 2599), $72,000,000.
                (5) For military construction projects at Fort Bragg, North
            Carolina, hospital replacement, authorized by section 2401(a) of
            the Military Construction Authorization Act for Fiscal Year 1993
            (106 Stat. 2599), $89,000,000.
                (6) For military construction projects at Pine Bluff
            Arsenal, Arkansas, authorized by section 2401(a) of the Military
            Construction Authorization Act for Fiscal Year 1995 (division B
            of the Public Law 103-337; 108 Stat. 3040), $46,000,000.
                (7) For military construction projects at Umatilla Army
            Depot, Oregon, authorized by section 2401(a) of the Military
            Construction Authorization Act for Fiscal Year 1995 (108 Stat.
            3040), $64,000,000.
                (8) For military construction projects at the Defense
            Finance and Accounting Service, Columbus, Ohio, authorized by
            section 2401(a) of the Military Construction Authorization Act
            of Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat.
            535), $20,822,000.

    [[Page 110 STAT. 2779]]

                (9) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $4,500,000.
                (10) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $21,874,000.
                (11) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $12,239,000.
                (12) For energy conservation projects under section 2865 of
            title 10, United States Code, $47,765,000.
                (13) For base closure and realignment activities as
            authorized by the Defense Base Closure and Realignment Act of
            1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
            note), $2,507,476,000.
                (14) For military family housing functions:
                        (A) For improvement and planning of military family
                    housing and facilities, $4,371,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $30,963,000, of which not more than
    $25,637,000 may be obligated or expended for the leasing of military
    family housing units worldwide.
                        (C) For credit to the Department of Defense Family
                    Housing Improvement Fund as authorized by section
                    2404(a)(1) of this Act, $25,000,000.
                        (D) For credit to the Department of Defense Military
                    Unaccompanied Housing Improvement Fund as authorized by
                    section 2404(a)(2) of this Act, $5,000,000.
                        (E) For the Homeowners Assistance Program as
                    authorized by section 2832 of title 10, United States
                    Code, $36,181,000, to remain available until expended.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variation authorized by section 2853 of title
    10, United States Code, and any other cost variations authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);
                (2) $179,000,000 (the balance of the amount authorized under
            section 2401(a) of this Act for the construction of a chemical
            demilitarization facility at Pueblo Army Depot,
            Colorado); and
                (3) $1,600,000 (the balance of the amount authorized under
            section 2401(a) of this Act for the construction of a
            replacement facility for the medical and dental clinic, Key West
            Naval Air Station, Florida).
    SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR
                              FISCAL YEAR 1996 DEFENSE AGENCIES
                              MILITARY CONSTRUCTION, LAND ACQUISITION,
                              AND MILITARY FAMILY HOUSING FUNCTIONS.

        Section 2405 of the Military Construction Authorization Act for
    Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 537) is
    amended by adding at the end the following new subsection:
        ``(c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (11) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such

    [[Page 110 STAT. 2780]]

    paragraphs, reduced by $7,000,000, which represents the combination of
    project savings resulting from favorable bids, reduced overhead costs,
    and cancellations due to force structure changes.''.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

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

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

    SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

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

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
               acquisition projects.
    Sec. 2602. Authorization and funding for construction and improvement of
               Naval Reserve Centers.
    Sec. 2603. Upgrade Air National Guard facilities, Bangor International
               Airport, Maine.

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

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

    [[Page 110 STAT. 2781]]

                        (B) for the Air Force Reserve, $52,805,000.
    SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND
                              IMPROVEMENT OF NAVAL RESERVE CENTERS.

        (a) Army Reserve Centers.--Using amounts appropriated under the
    heading ``Military Construction, Naval Reserve'' in the Military
    Construction Appropriations Act, 1995 (Public Law 103-307; 108 Stat.
    1661), for the construction of a Naval Reserve Center in Seattle,
    Washington, the Secretary of the Army may carry out a military
    construction project for the construction of an Army Reserve Center at
    Fort Lawton, Washington, in the total amount of $5,200,000, of which
    $700,000 may be used for program and design activities relating to such
    construction.
        (b) Naval Reserve Facilities.--Using amounts appropriated under the
    heading ``Military Construction, Naval Reserve'' in the Military
    Construction Appropriations Act, 1995 (Public Law 103-307; 108 Stat.
    1661), for the construction of a Naval Reserve Center in Seattle,
    Washington, the Secretary of the Navy may carry out--
                (1) a military construction project for the construction of
            an addition to the Naval Reserve Center in Tacoma, Washington,
            in the total amount of $4,200,000;
                (2) unspecified minor construction at Naval Reserve
            facilities in the total amount of $500,000; and
                (3) planning and design activities with respect to
            improvements at Naval Reserve facilities in the total amount of
            $500,000.
    SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR
                              INTERNATIONAL AIRPORT, MAINE.

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

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    Sec. 2701. Expiration of authorizations and amounts required to be
               specified by law.
    Sec. 2702. Extension of authorizations of certain fiscal year 1994
               projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 1993
               projects.
    Sec. 2704. Extension of authorizations of certain fiscal year 1992
               projects.
    Sec. 2705. Effective date.

    [[Page 110 STAT. 2782]]

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

        (a) Expiration of Authorizations After Three Years.--Except as
    provided in subsection (b), all authorizations contained in titles XXI
    through XXVI for military construction projects, land acquisition,
    family housing projects and facilities, and contributions to the North
    Atlantic Treaty Organization Security Investment program (and
    authorizations of appropriations therefor) shall expire on the later
    of--
                (1) October 1, 1999; or
                (2) the date of the enactment of an Act authorizing funds
            for military construction for fiscal year 2000.

        (b) Exception.--Subsection (a) shall not apply to authorizations for
    military construction projects, land acquisition, family housing
    projects and facilities, and contributions to the North Atlantic Treaty
    Organization Security Investment program (and authorizations of
    appropriations therefor), for which appropriated funds have been
    obligated before the later of--
                (1) October 1, 1999; or
                (2) the date of the enactment of an Act authorizing funds
            for fiscal year 2000 for military construction projects, land
            acquisition, family housing projects and facilities, or
            contributions to the North Atlantic Treaty Organization Security
            Investment program.

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

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

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

    [[Page 110 STAT. 2783]]

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

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

                              Army National Guard: Extension of 1994 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama.................................  Birmingham................  Aviation Support Facility.      $4,907,000

    [[Page 110 STAT. 2784]]

    Arizona.................................  Marana....................  Organizational Maintenance        $553,000
                                                                           Shop.....................
                                              Marana....................  Dormitory/Dining Facility.      $2,919,000
    California..............................  Fresno....................  Organizational Maintenance        $905,000
                                                                           Shop Modification........
                                              Van Nuys..................  Armory Addition...........      $6,518,000
    New Mexico..............................  White Sands Missile Range.  Organizational Maintenance      $2,940,000
                                                                           Shop.....................
                                                                          Tactical Site.............      $1,995,000
                                                                          MATES.....................      $3,570,000
    Pennsylvania............................  Indiantown Gap............  State Military Building...      $9,200,000
                                              Johnstown.................  Armory Addition/Flight          $5,004,000
                                                                           Facility.................
                                              Johnstown.................  Armory....................      $3,000,000
    South Carolina..........................  Summerville...............  Organizational Maintenance        $834,000
                                                                           Shop.....................
    ----------------------------------------------------------------------------------------------------------------

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

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

                                      Army: Extension of 1993 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Arkansas................................  Pine Bluff Arsenal........  Ammunition                     $15,000,000
                                                                           Demilitarization Support
                                                                           Facility.................
    ----------------------------------------------------------------------------------------------------------------

    [[Page 110 STAT. 2785]]

                                   Air Force: Extension of 1993 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     Country                   Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Portugal................................  Lajes Field...............  Water Wells...............        $865,000
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1993 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama.................................  Tuscaloosa................  Armory....................      $2,273,000
                                              Union Springs.............  Armory....................        $813,000
    New Mexico..............................  Clayton...................  Armory....................      $1,400,000
    ----------------------------------------------------------------------------------------------------------------

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

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

                                     Army: Extension of 1992 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Oregon..................................  Umatilla Army Depot.......  Ammunition                      $3,600,000
                                                                           Demilitarization Support
                                                                           Facility.................
                                              Umatilla Army Depot.......  Ammunition                      $7,500,000
                                                                           Demilitarization
                                                                           Utilities................
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2705. EFFECTIVE DATE.

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

    [[Page 110 STAT. 2786]]

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Increase in certain thresholds for unspecified minor
                          construction projects.
    Sec. 2802. Redesignation of North Atlantic Treaty Organization
                          Infrastructure
                          program.
    Sec. 2803. Improvements to family housing units.
    Sec. 2804. Availability of funds for planning, execution, and
                          administration of
                          contracts for family housing and unaccompanied
                          housing.

                Subtitle B--Defense Base Closure and Realignment

    Sec. 2811. Restoration of authority for certain intragovernment
                          transfers under 1988 base closure law.
    Sec. 2812. Contracting for certain services at facilities remaining on
                          closed installations.
    Sec. 2813. Authority to compensate owners of manufactured housing.
    Sec. 2814. Additional purpose for which adjustment and diversification
                          assistance is authorized.
    Sec. 2815. Payment of stipulated penalties assessed under CERCLA in
                          connection with Loring Air Force Base, Maine.
    Sec. 2816. Plan for utilization, reutilization, or disposal of
                          Mississippi Army Ammunition Plant.

                          Subtitle C--Land Conveyances

                            Part I--Army Conveyances

    Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington,
                          Virginia.
    Sec. 2822. Land transfer, Fort Sill, Oklahoma.
    Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
    Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South
                          Carolina.
    Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
    Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center,
                          Manchester, New Hampshire.
    Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
    Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                            Part II--Navy Conveyances

    Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
    Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard,
                          Virginia.
    Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons
                          Industrial Reserve Plant, Calverton, New York.
    Sec. 2834. Land conveyance, former naval reserve facility, Lewes,
                          Delaware.
    Sec. 2835. Modification of land conveyance authority, Naval Reserve
                          Center, Seattle, Washington.
    Sec. 2836. Release of condition on reconveyance of transferred land,
                          Guam.
    Sec. 2837. Lease to facilitate construction of reserve center, Naval Air
                          Station, Meridian, Mississippi.

                         Part III--Air Force Conveyances

    Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche,
                          South Dakota.
    Sec. 2842. Conveyance of primate research complex and Air Force-owned
                          chimpanzees, Holloman Air Force Base, New Mexico.

                           Part IV--Other Conveyances

    Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
    Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla,
                          North Dakota.
    Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
    Sec. 2854. Modification of boundaries of White Sands National Monument
                          and White Sands Missile Range.

                            Subtitle D--Other Matters

    Sec. 2861. Authority to grant easements for rights-of-way.
    Sec. 2862. Authority to enter into cooperative agreements for the
                          management of cultural resources on military
                          installations.

    [[Page 110 STAT. 2787]]

    Sec. 2863. Demonstration project for installation and operation of
                          electric power distribution system at Youngstown
                          Air Reserve Station, Ohio.
    Sec. 2864. Renovation of the Pentagon reservation.
    Sec. 2865. Plan for repairs and stabilization of the historic district
                          at the Forest Glen Annex of Walter Reed Medical
                          Center, Maryland.
    Sec. 2866. Naming of range at Camp Shelby, Mississippi.
    Sec. 2867. Designation of Michael O'Callaghan military hospital.
    Sec. 2868. Naming of building at the Uniformed Services University of
                          the Health Sciences.

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

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

        (a) O&M Funding for Projects.--Section 2805(c)(1)(B) of title 10,
    United States Code, is amended by striking out ``$300,000'' and
    inserting in lieu thereof ``$500,000''.
        (b) O&M Funding for Reserve Component Facilities.--Subsection (b) of
    section 18233a of such title is amended by striking out ``$300,000'' and
    inserting in lieu thereof ``$500,000''.
        (c) Notification for Expenditures and Contributions for Reserve
    Component Facilities.--Subsection (a)(1) of such section 18233a is
    amended by striking out ``$400,000'' and inserting in lieu thereof
    ``$1,500,000''.
    SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZATION
                              INFRASTRUCTURE PROGRAM.

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

        (c) Clerical Amendments.--(1) The section heading of such section is
    amended to read as follows:
    ``Sec. 2806. Contributions for North Atlantic Treaty Organizations
                      Security Investment''.

        (2) The table of sections at the beginning of subchapter I of
    chapter 169 of title 10, United States Code, is amended by striking out
    the item relating to section 2806 and inserting in lieu thereof the
    following new item:
    ``2806. Contributions for North Atlantic Treaty Organizations Security
                          Investment.''.

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

    [[Page 110 STAT. 2788]]

    thereof ``North Atlantic Treaty Organization Security Investment
    program''.

    SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

        (a) Authorized Improvements.--Subsection (a)(2) of section 2825 of
    title 10, United States Code, is amended--
                (1) by inserting ``major'' before ``maintenance''; and
                (2) by adding at the end the following: ``Such term does not
            include day-to-day maintenance and repair work.''.

        (b) Limitation.--Subsection (b) of such section is amended by
    striking out paragraph (2) and inserting in lieu thereof the following
    new paragraph:
        ``(2) In determining the applicability of the limitation contained
    in paragraph (1), the Secretary concerned shall include as part of the
    cost of the improvement of the unit or units concerned the following:
                ``(A) The cost of major maintenance or repair work
            undertaken in connection with the improvement.
                ``(B) Any cost, other than the cost of activities undertaken
            beyond a distance of five feet from the unit or units concerned,
            in connection with--
                        ``(i) the furnishing of electricity, gas, water, and
                    sewage disposal;
                        ``(ii) the construction or repair of roads, drives,
                    and walks; and
                        ``(iii) grading and drainage work.''.
    SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND
                              ADMINISTRATION OF CONTRACTS FOR FAMILY
                              HOUSING AND UNACCOMPANIED HOUSING.

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

                Subtitle B--Defense Base Closure and Realignment

    SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRA-
                              GOVERNMENT TRANSFERS UNDER 1988 BASE
                              CLOSURE LAW.

        Section 204(b)(2) of the Defense Authorization Amendments and Base
    Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note),
    is amended--
                (1) by redesignating subparagraphs (D) and (E) as
            subparagraphs (E) and (F), respectively; and
                (2) by inserting after subparagraph (C) the following new
            subparagraph (D):

    [[Page 110 STAT. 2789]]

        ``(D) The Secretary of Defense may transfer real property or
    facilities located at a military installation to be closed or realigned
    under this title, with or without reimbursement, to a military
    department or other entity (including a nonappropriated fund
    instrumentality) within the Department of Defense or the Coast Guard.''.
    SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES
                              REMAINING ON CLOSED INSTALLATIONS.

        (a) 1988 Law.--Section 204(b)(8)(A) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended by inserting ``, or at facilities not yet
    transferred or otherwise disposed of in the case of installations closed
    under this title,'' after ``under this title''.
        (b) 1990 Law.--Section 2905(b)(8)(A) of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2687 note) is amended by inserting ``, or at facilities not yet
    transferred or otherwise disposed of in the case of installations closed
    under this part,'' after ``under this part''.
    SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED HOUSING.

        (a) 1988 Law.--Section 204 of the Defense Authorization Amendments
    and Base Closure and Realignment Act (Public
    Law 100-526; 10 U.S.C. 2687 note), is amended by adding at the end the
    following new subsection:

        ``(f) Acquisition of Manufactured Housing.--(1) In closing or
    realigning any military installation under this title, the Secretary may
    purchase any or all right, title, and interest of a member of the Armed
    Forces and any spouse of the member in manufactured housing located at a
    manufactured housing park established at an installation closed or
    realigned under this title, or make a payment to the member to relocate
    the manufactured housing to a suitable new site, if the Secretary
    determines that--
                ``(A) it is in the best interests of the Federal Government
            to eliminate or relocate the manufactured housing park; and
                ``(B) the elimination or relocation of the manufactured
            housing park would result in an unreasonable financial hardship
            to the owners of the manufactured housing.

        ``(2) Any payment made under this subsection shall not exceed 90
    percent of the purchase price of the manufactured housing, as paid by
    the member or any spouse of the member, plus the cost of any permanent
    improvements subsequently made to the manufactured housing by the member
    or spouse of the member.
        ``(3) The Secretary shall dispose of manufactured housing acquired
    under this subsection through resale, donation, trade or otherwise
    within one year of acquisition.''.
        (b) 1990 Law.--Section 2905 of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2687 note), is amended by adding at the end the following new
    subsection:
        ``(g) Acquisition of Manufactured Housing.--(1) In closing or
    realigning any military installation under this part, the Secretary may
    purchase any or all right, title, and interest of a member of the Armed
    Forces and any spouse of the member in manufactured housing located at a
    manufactured housing park established at an installation closed or
    realigned under this part, or make a

    [[Page 110 STAT. 2790]]

    payment to the member to relocate the manufactured housing to a suitable
    new site, if the Secretary determines that--
                ``(A) it is in the best interests of the Federal Government
            to eliminate or relocate the manufactured housing park; and
                ``(B) the elimination or relocation of the manufactured
            housing park would result in an unreasonable financial hardship
            to the owners of the manufactured housing.

        ``(2) Any payment made under this subsection shall not exceed 90
    percent of the purchase price of the manufactured housing, as paid by
    the member or any spouse of the member, plus the cost of any permanent
    improvements subsequently made to the manufactured housing by the member
    or spouse of the member.
        ``(3) The Secretary shall dispose of manufactured housing acquired
    under this subsection through resale, donation, trade or otherwise
    within one year of acquisition.''.
    SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND
                              DIVERSIFICATION ASSISTANCE IS
                              AUTHORIZED.

        Section 2391(b)(5) of title 10, United States Code, is amended--
                (1) by inserting ``(A)'' after ``(5)''; and
                (2) by adding at the end the following new subparagraph:

        ``(B) The Secretary of Defense may also make grants, conclude
    cooperative agreements, and supplement other Federal funds in order to
    assist a State in enhancing its capacities--
                ``(i) to assist communities, businesses, and workers
            adversely affected by an action described in paragraph (1);
                ``(ii) to support local adjustment and diversification
            initiatives; and
                ``(iii) to stimulate cooperation between statewide and local
            adjustment and diversification efforts.''.
    SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA
                              IN CONNECTION WITH LORING AIR FORCE
                              BASE, MAINE.

        From amounts in the Department of Defense Base Closure Account 1990
    established by section 2906(a)(1) of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2687 note), the Secretary of Defense may expend not more than
    $50,000 to pay stipulated civil penalties assessed under the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980 (42 U.S.C. 9601 et seq.) against Loring Air Force Base, Maine.
    SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF
                              MISSISSIPPI ARMY AMMUNITION PLANT.

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

    [[Page 110 STAT. 2791]]

                          Subtitle C--Land Conveyances

                            PART I--ARMY CONVEYANCES

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

        (a) Requirement for Secretary of Interior To Transfer Certain
    Section  29 Lands.--(1) Subject to paragraph (2), the Secretary of the
    Interior shall transfer to the Secretary of the Army administrative
    jurisdiction over the following lands located in section 29 of the
    National Park System at Arlington National Cemetery, Virginia:
                (A) The lands known as the Arlington National Cemetery
            Interment Zone.
                (B) All lands in the Robert E. Lee Memorial Preservation
            Zone, other than those lands in the Preservation Zone that the
            Secretary of the Interior determines must be retained because of
            the historical significance of such lands or for the maintenance
            of nearby lands or facilities.

        (2)(A) The Secretary of the Interior may not make the transfer
    referred to in paragraph (1)(B) until 60 days after the date on which
    the Secretary submits to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives--
                (i) a summary of the document entitled ``Cultural Landscape
            and Archaeological Study, Section 29, Arlington House, The
            Robert E. Lee Memorial'';
                (ii) a summary of any environmental analysis required with
            respect to the transfer under the National Environmental Policy
            Act of 1969 (42 U.S.C. 4321 et seq.);
                (iii) an accounting of the effect of the transfer that
            satisfies the requirements of section 106 of the National
            Historic Preservation Act (16 U.S.C. 470f); and
                (iv) the proposal of the Secretary and the Secretary of the
            Army setting forth the lands to be transferred and the general
            manner in which the Secretary of the Army will develop such
            lands after transfer.

        (B) The Secretary of the Interior shall submit the information
    required under subparagraph (A) not later than October 31, 1997.
        (3) The transfer of lands under paragraph (1) shall be carried out
    in accordance with the Interagency Agreement Between the Department of
    the Interior, the National Park Service, and the Department of the Army,
    dated February 22, 1995.
        (4) The exact acreage and legal descriptions of the lands to be
    transferred under paragraph (1) shall be determined by surveys
    satisfactory to the Secretary of the Interior and the Secretary of the
    Army.
        (b) Requirement for Additional Transfers.--(1) The Secretary of the
    Interior shall transfer to the Secretary of the Army administrative
    jurisdiction over a parcel of land, including any improvements thereon,
    consisting of approximately 2.43 acres, located in the Memorial Drive
    entrance area to Arlington National Cemetery.
        (2)(A) The Secretary of the Army shall transfer to the Secretary of
    the Interior administrative jurisdiction over a parcel of land,
    including any improvements thereon, consisting of approximately

    [[Page 110 STAT. 2792]]

    0.17 acres, located at Arlington National Cemetery, and known as the Old
    Administrative Building site. The site is part of the original
    reservation of Arlington National Cemetery.
        (B) In connection with the transfer under subparagraph (A), the
    Secretary of the Army shall grant to the Secretary of the Interior a
    perpetual right of ingress and egress to the parcel transferred under
    that subparagraph.
        (3) The exact acreage and legal descriptions of the lands to be
    transferred pursuant to this subsection shall be determined by surveys
    satisfactory to the Secretary of the Interior and the Secretary of the
    Army. The costs of such surveys shall be borne by the Secretary of the
    Army.

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

        (a) Transfer of Land for National Cemetery.--The Secretary of the
    Army may transfer, without reimbursement, to
    the administrative jurisdiction of the Secretary of Veterans Affairs a
    parcel of real property, including any improvements thereon, consisting
    of approximately 400 acres and comprising a portion of Fort Sill,
    Oklahoma.

        (b) Use of Property.--The Secretary of Veterans Affairs shall use
    the real property transferred under subsection (a) as a national
    cemetery under chapter 24 of title 38, United States Code.
        (c) Return of Unused Portion.--If the Secretary of Veterans Affairs
    determines that any portion of the real property transferred under
    subsection (a) is not needed for use as a national cemetery, the
    Secretary shall return such portion to the administrative jurisdiction
    of the Secretary of the Army.
        (d) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under this section shall be
    determined by a survey satisfactory to the Secretary of the Army. The
    cost of the survey shall be borne by the Secretary of Veterans Affairs.
    SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE,
                              INDIANA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the City of Rushville, Indiana (in this
    section referred to as the ``City''), all right, title, and interest of
    the United States in and to a parcel of excess real property, including
    improvements thereon, that is located in Rushville, Indiana, and
    contains the Rushville Army Reserve Center.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the City retain
    the conveyed property for the use and benefit of the Rushville Police
    Department.

        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    [[Page 110 STAT. 2793]]

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

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the County of Anderson, South Carolina (in
    this section referred to as the ``County''), all right, title, and
    interest of the United States in and to a parcel of real property,
    including improvements thereon, that is located at 805 East Whitner
    Street in Anderson, South Carolina, and contains an Army Reserve Center.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the County retain
    the conveyed property for the use and benefit of the Anderson County
    Department of Education.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the County.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER,
                              VERMONT.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the City of Montpelier, Vermont (in this
    section referred to as the ``City''), all right, title, and interest of
    the United States in and to a parcel of real property, including
    improvements thereon, consisting of approximately 4.3 acres and located
    on Route 2 in Montpelier, Vermont, the site of the Army Reserve Center,
    Montpelier, Vermont.
        (b) Condition.--The conveyance authorized under subsection (a) shall
    be subject to the condition that the City agree to lease to the Civil
    Air Patrol, at no rental charge to the Civil Air Patrol, the portion of
    the real property and improvements located on the parcel to be conveyed
    that the Civil Air Patrol leases from the Secretary as of the date of
    the enactment of this Act.
        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING
                              CENTER, MANCHESTER, NEW HAMPSHIRE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Saint Anselm College, Manchester, New
    Hampshire, all right, title, and interest of the United States in and to
    a parcel of real property, including improvements thereon, consisting of
    approximately 3.5 acres and located on Rockland Avenue in Manchester,
    New Hampshire, the site of the Crafts Brothers Reserve Training Center.
        (b) Requirement Relating to Conveyance.--The Secretary may not make
    the conveyance authorized by subsection (a) until

    [[Page 110 STAT. 2794]]

    the Army Reserve units currently housed at the Crafts Brothers Reserve
    Training Center are relocated to the Joint Service Reserve Center to be
    constructed at the Manchester Airport, New Hampshire.
        (c) Requirement for Federal Screening of Property.--The Secretary
    may not carry out the conveyance of property authorized by subsection
    (a) unless the Secretary determines that no department or agency of the
    Federal Government will accept the transfer of the property.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Economic Development Alliance of Jefferson
    County, Arkansas (in this section referred to as the ``Alliance''), all
    right, title, and interest of the United States in and to a parcel of
    real property, together with any improvements thereon, consisting of
    approximately 1,500 acres and comprising a portion of the Pine Bluff
    Arsenal, Arkansas.
        (b) Requirements Relating to Conveyance.--The Secretary may not
    carry out the conveyance of property authorized under subsection (a)
    until--
                (1) the completion by the Secretary of any environmental
            restoration and remediation that is required with respect to the
            property under applicable law;
                (2) the Secretary secures all permits required under law
            applicable regarding the conduct of the proposed chemical
            demilitarization mission at the arsenal; and
                (3) the Secretary of Defense submits to the Committee on
            Armed Services of the Senate and the Committee on National
            Security of the House of Representatives a certification that
            the conveyance will not adversely affect the ability of the
            Department of Defense to conduct that chemical demilitarization
            mission.

        (c) Conditions of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the following conditions:
                (1) That the Alliance agree not to carry out any activities
            on the property to be conveyed that interfere with the
            construction, operation, and decommissioning of the chemical
            demilitarization facility to be constructed at Pine Bluff
            Arsenal. If the Alliance fails to comply with its agreement in
            paragraph (1) the property conveyed under this section, all
            rights, title, and interest in and to the property shall revert
            to the United States, and the United States shall have immediate
            rights of entry thereon.
                (2) That the property be used during the 25-year period
            beginning on the date of the conveyance only as the site of the
            facility known as the ``Bioplex'', and for activities related
            thereto.

        (d) Costs of Conveyance.--The Alliance shall be responsible for any
    costs of the Army associated with the conveyance of property

    [[Page 110 STAT. 2795]]

    under this section, including administrative costs, the costs of an
    environmental baseline survey with respect to the property, and the cost
    of any protection services required by the Secretary in order to secure
    operations of the chemical demilitarization facility from activities on
    the property after the conveyance.
        (e) Reversionary Interests.--If the Secretary determines at any time
    during the 25-year period referred to in subsection (c)(2) that the
    property conveyed under this section is not being used in accordance
    with that subsection, all right, title, and interest in and to the
    property shall revert to the United States, and the United States shall
    have immediate right of entry thereon.
        (f) Sale of Property by Alliance.--If at any time during the 25-year
    period referred to in subsection (c)(2) the Alliance sells all or a
    portion of the property conveyed under this section, the Alliance shall
    pay the United States an amount equal to the lesser of--
                (1) the amount of the sale of the property sold; or
                (2) the fair market value of the property sold at the time
            of the sale, excluding the value of any improvements to the
            property sold that have been made by the Alliance.

        (g) Description of Property.--The exact acreage and legal
    description of the property conveyed under this section shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the Alliance.
        (h) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with conveyance under this
    section as the Secretary considers appropriate to protect the interests
    of the United States.
    SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN,
                              ILLINOIS.

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

                            PART II--NAVY CONVEYANCES

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

        (a) Transfer Authorized.--The Secretary of the Navy may transfer,
    without consideration other than the reimbursement provided for in
    subsection (d), to the United States Institute of Peace (in this section
    referred to as the ``Institute'') administrative jurisdiction over a
    parcel of real property, including any improvements thereon, consisting
    of approximately 3 acres, at the northwest corner of Twenty-third Street
    and Constitution Avenue, Northwest, District of Columbia, the site of
    the Potomac Annex.
        (b) Condition.--The Secretary may not make the transfer specified in
    subsection (a) unless the Institute agrees to provide the Navy a number
    of parking spaces at or in the vicinity of the headquarters to be
    constructed on the parcel transferred equal to the number of parking
    spaces available to the Navy on the parcel as of the date of the
    transfer.
        (c) Requirement Relating to Transfer.--The transfer specified in
    subsection (a) may not occur until the Institute obtains

    [[Page 110 STAT. 2796]]

    all permits, approvals, and site plan reviews required by law with
    respect to the construction on the parcel of a headquarters for
    operations of the Institute.
        (d) Costs.--The Institute shall reimburse the Secretary for the
    costs incurred by the Secretary in carrying out the transfer specified
    in subsection (a).
        (e) Description of Property.--The exact acreage and legal
    description of the property to be transferred under subsection (a) shall
    be determined by a survey that is satisfactory to the Secretary. The
    cost of the survey shall be borne by the Institute.
    SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL
                              SHIPYARD, VIRGINIA.

        (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey
    to such private person as the Secretary considers appropriate (in this
    section referred to as the ``transferee'') all right, title, and
    interest of the United States in and to a parcel of real property that
    is located at the Norfolk Naval Shipyard, Virginia, and, as of the date
    of the enactment of this Act, is a portion of the property leased to the
    Norfolk Shipbuilding and Drydock Company pursuant to the Department of
    the Navy lease N00024-84-L-0004, effective October 1, 1984, as extended.
        (2) Pending completion of the conveyance authorized by paragraph
    (1), the Secretary may lease the real property to the transferee upon
    such terms as the Secretary considers appropriate.

        (b) Consideration.--As consideration for the conveyance under
    subsection (a), including any interim lease authorized by such
    subsection, the transferee shall--
                (1) convey to the United States all right, title, and
            interest to a parcel or parcels of real property, together with
            any improvements thereon, located in the area of Portsmouth,
            Virginia, which are determined to be acceptable to the
            Secretary; and
                (2) pay to the Secretary an amount equal to the amount, if
            any, by which the fair market value of the parcel conveyed by
            the Secretary under subsection (a) exceeds the fair market value
            of the parcel conveyed to the United States under paragraph (1).

        (c) Use of Rental Amounts.--The Secretary may use the amounts
    received as rent from any lease entered into under the authority of
    subsection (a)(2) to fund environmental studies of the parcels of real
    property to be conveyed under this section.
        (d) In-Kind Consideration.--The Secretary and the transferee may
    agree that, in lieu of all or any part of the consideration required by
    subsection (b)(2), the transferee may provide and the Secretary may
    accept the improvement, maintenance, protection, repair, or restoration
    of real property under the control of the Secretary in the area of
    Hampton Roads, Virginia.
        (e) Determination of Fair Market Value and Property Description.--
    The Secretary shall determine the fair market value of the parcels of
    real property to be conveyed under subsections (a) and (b)(1). The exact
    acreage and legal description of the parcels shall be determined by a
    survey satisfactory to the Secretary. The cost of the survey shall be
    borne by the transferee.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with

    [[Page 110 STAT. 2797]]

    the conveyances under this section as the Secretary considers
    appropriate to protect the interests of the United States.
    SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL WEAPONS
                              INDUSTRIAL RESERVE PLANT, CALVERTON, NEW
                              YORK.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey,
    without consideration, to the Department of Environmental Conservation
    of the State of New York (in this section referred to as the
    ``Department''), all right, title, and interest of the United States in
    and to the Calverton Pine Barrens located at the Naval Weapons
    Industrial Reserve Plant, Calverton, New York.
        (b) Effect on Other Conveyance Authority.--The conveyance authorized
    by this subsection shall not affect the transfer of jurisdiction of a
    portion of the Calverton Pine Barrens authorized by section 2865 of the
    Military Construction Authorization Act for Fiscal Year 1996 (division B
    of Public Law 104-106; 110 Stat. 576).
        (c) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the Department agrees--
                (1) to maintain the conveyed property as a nature preserve,
            as required by section 2854 of the Military Construction
            Authorization Act for Fiscal Year 1993 (division B of Public Law
            102-484; 106 Stat. 2626), as amended by section 2823 of the
            Military Construction Authorization Act for Fiscal Year 1995
            (division B of Public Law 103-337; 108 Stat. 3058);
                (2) to designate the conveyed property as the ``Otis G. Pike
            Preserve''; and
                (3) to continue to allow the level of sporting activities on
            the conveyed property as permitted at the time of the
            conveyance.

        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Department.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
        (f) Calverton Pine Barrens Defined.--In this section, the term
    ``Calverton Pine Barrens'' has the meaning given that term in section
    2854(d)(1) of the Military Construction Authorization Act for Fiscal
    Year 1993 (division B of Public Law 102-484; 106 Stat. 2626).
    SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, LEWES,
                              DELAWARE.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey,
    without consideration, to the State of Delaware (in this section
    referred to as the ``State''), all right, title, and interest of the
    United States in and to a parcel of real property, including any
    improvements thereon, consisting of approximately 16.8 acres at the site
    of the former Naval Reserve Facility, Lewes, Delaware.
        (b) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the State use the real property
    conveyed under that subsection in perpetuity solely for public park or
    recreational purposes.

    [[Page 110 STAT. 2798]]

        (c) Reversion.--If the Secretary of the Navy determines at any time
    that the real property conveyed pursuant to this section is not being
    used for a purpose specified in subsection (b), all right, title, and
    interest in and to such real property, including any improvements
    thereon, shall revert to the United States, and the United States shall
    have the right of immediate entry thereon.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed pursuant to this section
    shall be determined by a survey satisfactory to the Secretary of the
    Navy. The cost of such survey shall be borne by the State.
        (e) Additional Terms and Conditions.--The Secretary of the Navy may
    require such additional terms and conditions in connection with the
    conveyance under this section as the Secretary considers appropriate to
    protect the interests of the United States.
    SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL
                              RESERVE CENTER, SEATTLE, WASHINGTON.

        Paragraph (2) of section 127(d) of the Military Construction
    Appropriations Act, 1995 (Public Law 103-307; 108 Stat. 1666), is
    amended to read as follows:
        ``(2) Before commencing construction of a facility to be the
    replacement facility for the Naval Reserve Center under paragraph (1),
    the Secretary shall comply with the requirements of the National
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect
    to such facility.''.
    SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANSFERRED
                              LAND, GUAM.

        (a) In General.--Section 818(b)(2) of the Military Construction
    Authorization Act, 1981 (Public Law 96-418; 94 Stat. 1782), relating to
    a condition on disposal by Guam of lands conveyed to Guam by the United
    States, shall have no force or effect and is repealed.
        (b) Execution of Instruments.--The Secretary of the Navy and the
    Administrator of General Services shall execute all instruments
    necessary to implement this section.
    SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE CENTER,
                              NAVAL AIR STATION, MERIDIAN,
                              MISSISSIPPI.

        (a) Lease of Property for Construction of Reserve Center.--(1) The
    Secretary of the Navy may lease, without reimbursement, to the State of
    Mississippi (in this section referred to as the ``State''),
    approximately five acres of real property located at Naval Air Station,
    Meridian, Mississippi. The State shall use the property to construct a
    reserve center of approximately 22,000 square feet and ancillary
    supporting facilities.
        (2) The term of the lease under this subsection shall expire on the
    same date that the lease authorized by subsection (b) expires.
        (b) Leaseback of Reserve Center.--(1) The Secretary may lease from
    the State the property and improvements constructed pursuant to
    subsection (a) for a five-year period. The term of the lease shall begin
    on the date on which the improvements are available for occupancy, as
    determined by the Secretary.
        (2) Rental payments under the lease under paragraph (1) may not
    exceed $200,000 per year, and the total amount of the rental payments
    for the entire period may not exceed 20 percent of the total cost of
    constructing the reserve center and ancillary supporting facilities.

    [[Page 110 STAT. 2799]]

        (3) Subject to the availability of appropriations for this purpose,
    the Secretary may use funds appropriated pursuant to an authorization of
    appropriations for the operation and maintenance of the Naval Reserve to
    make rental payments required under this
    subsection.
        (c) Effect of Termination of Leases.--At the end of the lease term
    under subsection (b), the State shall convey, without reimbursement, to
    the United States all right, title, and interest of the State in the
    reserve center and ancillary supporting facilities subject to the lease.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the leases under this
    section as the Secretary considers appropriate to protect the interests
    of the United States.

                         PART III--AIR FORCE CONVEYANCES

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

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

        (c) Description of Property.--The exact acreage and legal
    description of the property conveyed under this section shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the District.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR FORCE-
                              OWNED CHIMPANZEES, HOLLOMAN AIR FORCE
                              BASE, NEW MEXICO.

        (a) Disposal Authorized.--Notwithstanding any provision of the
    Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471
    et seq.), or any regulations prescribed thereunder, the Secretary of the
    Air Force may dispose of all right, title, and interest of the United
    States in and to the primate research complex

    [[Page 110 STAT. 2800]]

    at Holloman Air Force Base, New Mexico. The disposal may include the
    chimpanzees owned by the Air Force that are housed at or managed from
    the primate research complex. The disposal shall not include the
    underlying real property on which the primate research complex is
    located. The disposal of the primate research complex shall be at no
    cost to the Air Force.
        (b) Competitive, Negotiated Disposal Process Required.--The
    Secretary shall select the persons or entities to which the primate
    research complex and chimpanzees are to be disposed of under subsection
    (a) using a competitive, negotiated process.
        (c) Standards To Be Used in Solicitation of Bids.--The Secretary
    shall develop standards for the care and use of the primate research
    complex, and of the chimpanzees, to be used in soliciting bids for the
    disposal authorized by subsection (a). The Secretary shall develop such
    standards in consultation with the Secretary of Agriculture and the
    Director of the National Institutes of Health.
        (d) Conditions of Disposal.--The disposal authorized by subsection
    (a) shall be subject to the followings conditions:
                (1) That a recipient of any chimpanzees--
                        (A) utilize such chimpanzees only for scientific
                    research or medical research purposes; or
                        (B) retire and provide adequate care for such
                    chimpanzees.
                (2) That any recipient of chimpanzees, or the primate
            research complex, take such chimpanzees, or the primate research
            complex, subject to any existing leases or other encumbrances at
            the time of the disposal.

        (e) Description of Complex and Chimpanzees.--The exact legal
    description of the primate research complex and chimpanzees to be
    disposed of under subsection (a) shall be determined by a survey or
    other means satisfactory to the Secretary. The cost of any survey or
    other services performed at the direction of the Secretary under the
    authority in the preceding sentence shall be borne by the recipient of
    the property concerned.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the disposal under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

                           PART IV--OTHER CONVEYANCES

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

        (a) Conveyance Authorized.--The Secretary of Energy may convey,
    without compensation, to the State of Mississippi (in this section
    referred to as the ``State'') the property known as the Tatum Salt Dome
    Test Site, as generally depicted on the map of the Department of Energy
    numbered 301913.104.02 and dated June 25, 1993.
        (b) Condition on Conveyance.--The conveyance under this section
    shall be subject to the condition that the State use the conveyed
    property as a wildlife refuge and working demonstration forest.
        (c) Designation.--The property to be conveyed is hereby designated
    as the ``Jamie Whitten Forest Management Area''.

    [[Page 110 STAT. 2801]]

        (d) Retained Rights.--The conveyance under this section shall be
    subject to each of the following rights to be retained by the United
    States:
                (1) Retention by the United States of subsurface estates
            below the property conveyed.
                (2) Retention by the United States of rights of access, by
            easement or otherwise, for such purposes as the Secretary
            considers appropriate, including access to monitoring wells for
            sampling.
                (3) Retention by the United States of the right to install
            wells additional to those identified in the remediation plan for
            the property to the extent such additional wells are considered
            necessary by the Secretary to monitor potential pathways of
            contaminant migration. Such wells shall be in such locations as
            specified by the Secretary.

        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
    SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING PLANT,
                              ROLLA, NORTH DAKOTA.

        (a) Conveyance Authorized.--The Administrator of General Services
    may convey, without consideration, to the Job Development Authority of
    the City of Rolla, North Dakota (in this section referred to as the
    ``Authority''), all right, title, and interest of the United States in
    and to a parcel of real property, with improvements thereon and all
    associated personal property, consisting of approximately 9.77 acres and
    comprising the William Langer Jewel Bearing Plant in Rolla, North
    Dakota.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the Authority--
                (1) use the real and personal property and improvements
            conveyed under that subsection for economic development relating
            to the jewel bearing plant;
                (2) enter into an agreement with an appropriate public or
            private entity or person to lease such property and
            improvements to that entity or person for such economic
            development; or
                (3) enter into an agreement with an appropriate public or
            private entity or person to sell such property and improvements
            to that entity or person for such economic development.

        (c) Preference for Domestic Disposal of Jewel Bearings.--
    (1) <<NOTE: President.>>  In offering to enter into agreements pursuant
    to any provision of law for the disposal of jewel bearings from the
    National Defense Stockpile, the President shall give a right of first
    refusal on all such offers to the Authority or to the appropriate public
    or private entity or person with which the Authority enters into an
    agreement under subsection (b).

        (2) For the purposes of this section, the term ``National Defense
    Stockpile'' means the stockpile provided for in section 4 of the
    Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98(c)).

        (d) Availability of Funds for Maintenance and Conveyance of Plant.--
    Notwithstanding any other provision of law, funds available under the
    Department of Defense Appropriations Act, 1995 (Public Law 103-335), in
    fiscal year 1995 for the maintenance

    [[Page 110 STAT. 2802]]

    of the William Langer Jewel Bearing Plant shall be available for the
    maintenance of the plant pending the conveyance of the plant and for the
    conveyance of the plant under this section.
        (e) Description of Property.--The exact acreage and legal
    description of the property conveyed under this section shall be
    determined by a survey satisfactory to the Administrator. The cost of
    the survey shall be borne by the Administrator.
        (f) Additional Terms and Conditions.--The Administrator may require
    such additional terms and conditions in connection with the conveyance
    under this section as the Administrator determines appropriate to
    protect the interests of the United States.
    SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS,
                              OHIO.

        (a) Conveyance Authorized.--Notwithstanding any other provision of
    law, the Secretary of the Air Force may instruct the Administrator of
    General Services to convey, without consideration, to the Columbus
    Municipal Airport Authority (in this section referred to as the
    ``Authority'') all right, title, and interest of the United States in
    and to a parcel of real property, together with improvements thereon, at
    Air Force Plant No. 85, Columbus, Ohio, consisting of approximately 240
    acres that--
                (1) contains the land and buildings referred to as the
            ``airport parcel'' in the correspondence from the General
            Services Administration to the Authority dated April 30, 1996;
            and
                (2) is located adjacent to the Port Columbus International
            Airport.

        (b) Effect of Change in Administrative Jurisdiction.--If, on the
    date of the enactment of this Act, the Secretary of the Air Force does
    not have administrative jurisdiction over the property to be conveyed,
    the conveyance shall be made by the Federal official who has
    administrative jurisdiction over the parcel as of that date.
        (c) Requirement for Federal Screening.--The Federal official
    responsible for making the conveyance authorized in subsection (a) may
    not convey the property unless the Federal official determines, in
    consultation with the Administrator of General Services, that no
    department or agency of the Federal Government will accept the transfer
    of the property.
        (d) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that the Authority use
    the conveyed property for public airport purposes.
        (e) Reversion.--If the Federal official making the conveyance under
    subsection (a) determines that any portion of the conveyed property is
    not being utilized in accordance with the condition in subsection (d),
    all right, title, and interest in and to such portion shall revert to
    the United States, and the United States shall have immediate right of
    entry thereon.
        (f) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Federal official
    responsible for making the conveyance. The cost of the survey shall be
    borne by the Authority.
        (g) Additional Terms and Conditions.--The Federal official
    responsible for making the conveyance of property under subsection (a)
    may require such additional terms and conditions in connection

    [[Page 110 STAT. 2803]]

    with the conveyance as such official considers appropriate to protect
    the interests of the United States.
    SEC. 2854. <<NOTE: 16 USC 431 note.>>  MODIFICATION OF BOUNDARIES
                              OF WHITE SANDS NATIONAL MONUMENT AND
                              WHITE SANDS MISSILE RANGE.

        (a) Transfer of Lands by Secretary of Army.--The Secretary of the
    Army may transfer to the administrative jurisdiction of the Secretary of
    the Interior the following lands as generally depicted on the map
    entitled ``White Sands National Monument, Boundary Proposal'', numbered
    142/80,061, and dated January 1994:
                (1) Lands consisting of approximately 2,524 acres located
            within White Sands National Monument, New Mexico.
                (2) Lands consisting of approximately 5,758 acres located
            within White Sands Missile Range, New Mexico, and abutting White
            Sands National Monument.

        (b) Transfer of Lands by Secretary of Interior.--The Secretary of
    the Interior may transfer to the administrative jurisdiction of the
    Secretary of the Army lands consisting of approximately 4,277 acres
    located in White Sands National Monument, which lands are generally
    depicted on the map referred to in subsection (a).
        (c) Boundary Modifications.--(1) The Secretary of the Army and the
    Secretary of the Interior shall jointly modify the boundary of White
    Sands National Monument so as to include within the national monument
    the lands transferred under subsection (a) and to exclude from the
    national monument the lands transferred under subsection (b).
        (2) The Secretary of the Army and the Secretary of the Interior
    shall jointly modify the boundary of White Sands Missile Range as to
    include within the missile range the lands transferred under subsection
    (b) and exclude from the missile range the lands transferred under
    subsection (a).
        (d) Administration of Transferred Lands.--(1) The Secretary of the
    Interior shall administer the lands transferred to that Secretary under
    subsection (a) in accordance with the laws applicable to the White Sands
    National Monument.
        (2) The Secretary of the Army shall administer the lands transferred
    to that Secretary under subsection (b) as part of White Sands Missile
    Range.
        (3) The Secretary of the Army shall maintain control of the airspace
    above the lands transferred to that Secretary under subsection (b) and
    administer that airspace in a manner
    consistent with the use of such lands as part of White Sands Missile
    Range.

        (e) Public Availability of Map of Monument.--The Secretary of the
    Interior and the Secretary of the Army shall jointly prepare, and the
    Secretary of the Interior shall keep on file for public inspection in
    the headquarters of White Sands National Monument, a map showing the
    boundary of White Sands National Monument as modified by this section.
        (f) Waiver of Limitation Under Prior Law.--Notwithstanding section
    303(b)(1) of the National Parks and Recreation Act of 1978 (Public Law
    95-625; 92 Stat. 3476), land or an interest in land that was deleted
    from White Sands National Monument by section 301(19) of the Act (92
    Stat. 3475) may, at the election of the Secretary of the Interior, be--

    [[Page 110 STAT. 2804]]

                (1) exchanged for land owned by the State of New Mexico
            within the boundaries of any unit of the National Park System in
            the State of New Mexico;
                (2) transferred to the jurisdiction of any other Federal
            agency without monetary consideration; or
                (3) administered as public land.

                            Subtitle D--Other Matters

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

        (a) Easements for Electric Poles and Lines and for Communications
    Lines and Facilities.--Section 2668(a) of title 10, United States Code,
    is amended--
                (1) by striking out ``and'' at the end of paragraph (9);
                (2) by redesignating paragraph (10) as paragraph
            (13); and
                (3) by inserting after paragraph (9) the following new
            paragraphs:
                ``(10) poles and lines for the transmission or distribution
            of electric power;
                ``(11) poles and lines for the transmission or distribution
            of communications signals (including telephone and telegraph
            signals);
                ``(12) structures and facilities for the transmission,
            reception, and relay of such signals; and''.

        (b) Conforming Amendments.--Such section is further amended--
                (1) in paragraph (3), by striking out ``, telephone lines,
            and telegraph lines,''; and
                (2) in paragraph (13), as redesignated by subsection (a)(2),
            by striking out ``or by the Act of March 4, 1911 (43 U.S.C.
            961)''.
    SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS FOR THE
                              MANAGEMENT OF CULTURAL RESOURCES ON
                              MILITARY INSTALLATIONS.

        (a) Agreements Authorized.--Chapter 159 of title 10, United States
    Code, is amended by inserting after section 2683 the following new
    section:
    ``Sec. 2684. Cooperative agreements for management of cultural
                      resources

        ``(a) Authority.--The Secretary of Defense or the Secretary of a
    military department may enter into a cooperative agreement with a State
    or local government or other entity for the preservation, management,
    maintenance, and improvement of cultural resources on military
    installations and for the conduct of research regarding the cultural
    resources. Activities under the cooperative agreement shall be subject
    to the availability of funds to carry out the cooperative agreement.
        ``(b) Application of Other Laws.--Section 1535 and chapter 63 of
    title 31, United States Code, shall not apply to a cooperative agreement
    entered into under this section.
        ``(c) Cultural Resource Defined.--In this section, the term
    `cultural resource' means any of the following:
                ``(1) A building, structure, site, district, or object
            eligible for or included in the National Register of Historic
            Places

    [[Page 110 STAT. 2805]]

            maintained under section 101(a) of the National Historic
            Preservation Act (16 U.S.C. 470a(a)).
                ``(2) Cultural items, as that term is defined in section
            2(3) of the Native American Graves Protection and Repatriation
            Act (25 U.S.C. 3001(3)).
                ``(3) An archaeological resource, as that term is defined in
            section 3(1) of the Archaeological Resources Protection Act of
            1979 (16 U.S.C. 470bb(1)).
                ``(4) An archaeological artifact collection and associated
            records covered by section 79 of title 36, Code of Federal
            Regulations.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2683 the following new item:

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

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

        (a) Authority.--The Secretary of the Air Force may carry out a
    demonstration project to assess the feasibility and advisability of
    permitting private entities to install, operate, and maintain
    electric power distribution systems at military installations. The
    Secretary shall carry out the demonstration project through an agreement
    under subsection (b).

        (b) Agreement.--(1) In order to carry out the demonstration project,
    the Secretary shall enter into an agreement with an electric utility or
    other company in the Youngstown, Ohio, area, consistent with State law,
    under which the utility or company installs, operates, and maintains (in
    a manner satisfactory to the Secretary and the utility or company) an
    electric power distribution system at Youngstown Air Reserve Station,
    Ohio.
        (2) The Secretary may not enter into an agreement under this
    subsection until--
                (A) <<NOTE: Reports.>>  the Secretary submits to Congress a
            report on the agreement to be entered into, including the costs
            to be incurred by the United States under the agreement; and
                (B) a period of 30 days has elapsed from the date of the
            receipt of the report by the committees.

        (c) Licenses and Easements.--In order to facilitate the
    installation, operation, and maintenance of the electric power
    distribution system under the agreement under subsection (b), the
    Secretary may grant the utility or company with which the Secretary
    enters into the agreement such licenses, easements, and rights-of-way,
    consistent with State law, as the Secretary and the utility or company
    jointly determine necessary for such purposes.
        (d) Ownership of System.--The agreement between the Secretary and
    the utility or company under subsection (b) may provide that the utility
    or company shall own the electric power distribution system installed
    under the agreement.
        (e) Rate.--The rate charged by the utility or company for providing
    or distributing electric power at Youngstown Air Reserve Station through
    the electric power distribution system installed under the agreement
    under subsection (b) shall be the rate established by the appropriate
    Federal or State regulatory authority.
        (f) Reports.--Not later than February 1, 1997, and February 1 of
    each year following a year in which the Secretary carries

    [[Page 110 STAT. 2806]]

    out the demonstration project under this section, the Secretary shall
    submit to Congress a report on the project. The report shall include the
    Secretary's current assessment of the project and the recommendations,
    if any, of the Secretary of extending the authority with respect to the
    project to other facilities and installations of the Department of
    Defense.
        (g) Funding.--In order to pay the costs of the United States under
    the agreement under subsection (b), the Secretary may use funds
    authorized to be appropriated by section 2601(3)(B) of the Military
    Construction Authorization Act for Fiscal Year 1996 (division B of
    Public Law 104-106; 110 Stat. 540) for the purpose of rebuilding the
    electric power distribution system at the Youngstown Air Reserve Station
    that were appropriated for that purpose by the Military Construction
    Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 283), and that
    remain available for obligation for that purpose as of the date of the
    enactment of this Act.
        (h) Application of Other Law.--Nothing in this section shall
    authorize actions which are inconsistent with Federal or State law.
        (i) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in the agreement under subsection (b) as
    the Secretary considers appropriate to protect the interests of the
    United States.

    SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

        The Secretary of Defense shall take such actions as are necessary to
    ensure that the total cost of the renovation of the Pentagon Reservation
    does not exceed $1,118,000,000.
    SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC
                              DISTRICT AT THE FOREST GLEN ANNEX OF
                              WALTER REED MEDICAL CENTER, MARYLAND.

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

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

        (a) Name.--The Multi Purpose Range Complex (Heavy) at Camp Shelby,
    Mississippi, shall after the date of the enactment of this Act be known
    and designated as the ``G.V. (Sonny) Montgomery Range''. Any reference
    to such range in any law, regulation, map, document, record, or other
    paper of the United States shall be considered to be a reference to the
    G. V. (Sonny) Montgomery Range.
        (b) Effective Date.--Subsection (a) shall take effect at noon on
    January 3, 1997, or the first day on which G. V. (Sonny) Montgomery
    otherwise ceases to be a Member of the House of Representatives.
    SEC. 2867. <<NOTE: Nevada.>>  DESIGNATION OF MICHAEL O'CALLAGHAN
                              MILITARY HOSPITAL.

        (a) Designation.--The Nellis Federal Hospital, a Federal building
    located at 4700 North Las Vegas Boulevard, Las Vegas, Nevada, shall be
    known and designated as the ``Michael O'Callaghan Military Hospital''.

    [[Page 110 STAT. 2807]]

        (b) References.--Any reference in a law, map, regulation, document,
    paper, or other record of the United States to the Federal building
    referred to in subsection (a) shall be deemed to be a reference to the
    ``Michael O'Callaghan Military Hospital''.
    SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES UNIVERSITY
                              OF THE HEALTH SCIENCES.

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

                      TITLE XXIX--MILITARY LAND WITHDRAWALS

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

    Sec. 2901. Short title.
    Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military
               Reservation.
    Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver
               Site.
    Sec. 2904. Maps and legal descriptions.
    Sec. 2905. Management of withdrawn lands.
    Sec. 2906. Management of withdrawn and acquired mineral resources.
    Sec. 2907. Hunting, fishing, and trapping.
    Sec. 2908. Termination of withdrawal and reservation.
    Sec. 2909. Determination of presence of contamination and effect of
               contamination.
    Sec. 2910. Delegation.
    Sec. 2911. Hold harmless.
    Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
    Sec. 2913. Authorization of appropriations.

           Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

    Sec. 2921. Short title and definitions.
    Sec. 2922. Withdrawal and reservation of lands for El Centro.
    Sec. 2923. Maps and legal descriptions.
    Sec. 2924. Management of withdrawn lands.
    Sec. 2925. Duration of withdrawal and reservation.
    Sec. 2926. Continuation of ongoing decontamination activities.
    Sec. 2927. Requirements for extension.
    Sec. 2928. Early relinquishment of withdrawal.
    Sec. 2929. Delegation of authority.
    Sec. 2930. Hunting, fishing, and trapping.
    Sec. 2931. Hold harmless.

     Subtitle A <<NOTE: Fort Carson-Pinon Canyon Military Lands Withdrawal
    Act.>> --Fort Carson-Pinon Canyon Military Lands Withdrawal

    SEC. 2901. SHORT TITLE.

        This subtitle may be cited as the ``Fort Carson-Pinon Canyon
    Military Lands Withdrawal Act''.
    SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT
                              CARSON MILITARY RESERVATION.

        (a) Withdrawal.--Subject to valid existing rights and except as
    otherwise provided in this subtitle, the lands at the Fort Carson
    Military Reservation, Colorado, that are described in subsection (c) are
    hereby withdrawn from all forms of appropriation under the public land
    laws, including the mining laws, the mineral and geothermal leasing
    laws, and the mineral materials disposal laws.
        (b) Reservation.--The lands withdrawn under subsection (a) are
    reserved for use by the Secretary of the Army--

    [[Page 110 STAT. 2808]]

                (1) for military maneuvering, training and weapons
            firing; and
                (2) for other defense related purposes consistent with the
            uses specified in paragraph (1).

        (c) Land Description.--The lands referred to in subsection (a)
    comprise 3,133.02 acres of public land and 11,415.16 acres of federally-
    owned minerals in El Paso, Pueblo, and Fremont Counties, Colorado, as
    generally depicted on the map entitled ``Fort Carson Proposed
    Withdrawal--Fort Carson Base'', dated February 6, 1992, and published in
    accordance with section 2904.
    SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON CANYON
                              MANEUVER SITE.

        (a) Withdrawal.--Subject to valid existing rights and except as
    otherwise provided in this subtitle, the lands at the Pinon Canyon
    Maneuver Site, Colorado, that are described in subsection (c) are hereby
    withdrawn from all forms of appropriation under the public land laws,
    including the mining laws, the mineral and geothermal leasing laws, and
    the mineral materials disposal laws.
        (b) Reservation.--The lands withdrawn under subsection (a) are
    reserved for use by the Secretary of the Army--
                (1) for military maneuvering and training; and
                (2) for other defense related purposes consistent with the
            uses specified in paragraph (1).

        (c) Land Description.--The lands referred to in subsection (a)
    comprise 2,517.12 acres of public lands and 130,139 acres of federally-
    owned minerals in Las Animas County, Colorado, as generally depicted on
    the map entitled ``Fort Carson Proposed Withdrawal--Fort Carson Maneuver
    Area--Pinon Canyon site'', dated February 6, 1992, and published in
    accordance with section 2904.

    SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

        (a) <<NOTE: Federal Register, publication.>>  Preparation of Maps
    and Legal Description.--As soon as practicable after the date of the
    enactment of this subtitle, the Secretary of the Interior shall prepare
    maps depicting the lands withdrawn and reserved by this subtitle and
    publish in the Federal Register a notice containing the legal
    description of such lands.

        (b) Legal Effect.--Such maps and legal descriptions shall have the
    same force and effect as if they were included in this subtitle, except
    that the Secretary of the Interior may correct clerical and
    typographical errors in such maps and legal descriptions.
        (c) Availability of Maps and Legal Description.--Copies of such maps
    and legal descriptions shall be available for public inspection in the
    offices of the Colorado State Director and the Canon City District
    Manager of the Bureau of Land Management and in the offices of the
    Commander of Fort Carson, Colorado.
        (d) Costs.--The Secretary of the Army shall reimburse the Secretary
    of the Interior for the costs of implementing this section.

    SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

        (a) Management Guidelines.--
                (1) Management by secretary of the army.--Except as provided
            in section 2906, during the period of withdrawal, the Secretary
            of the Army shall manage for military pur-
            poses the lands covered by this subtitle and may authorize use
            of the lands by the other military departments and agencies

    [[Page 110 STAT. 2809]]

            of the Department of Defense, and the National Guard, as
            appropriate.
                (2) Access restrictions.--When military operations, public
            safety, or national security, as determined by the Secretary of
            the Army, require the closure of roads and trails on the lands
            withdrawn by this subtitle commonly in public use, the Secretary
            of the Army is authorized to take such action, except that such
            closures shall be limited to the minimum areas and periods
            required for the purposes specified in this subsection.
            Appropriate warning notices shall be kept posted during
            closures.
                (3) Suppression of fires.--The Secretary of the Army shall
            take necessary precautions to prevent and suppress brush and
            range fires occurring within and outside the lands as a result
            of military activities and may seek assistance from the Bureau
            of Land Management in suppressing such fires. The memorandum of
            understanding required by this section shall provide for Bureau
            of Land Management assistance in the suppression of such fires,
            and for a transfer of funds from the Department of the Army to
            the Bureau of Land Management as compensation for such
            assistance.

        (b) Management Plan.--
                (1) Development required.--The Secretary of the Army, with
            the concurrence of the Secretary of the Interior, shall develop
            a plan for the management of acquired lands and lands withdrawn
            under sections 2902 and 2903 for the period of withdrawal. The
            plan shall--
                        (A) be consistent with applicable law;
                        (B) include such provisions as may be necessary for
                    proper resource management and protection of the
                    natural, cultural, and other resources and values of
                    such lands; and
                        (C) identify those withdrawn and acquired lands, if
                    any, which are to be open to mining or mineral and
                    geothermal leasing, including mineral materials
                    disposal.
                (2) Time for development.--The management plan required by
            this subsection shall be developed not later than 5 years after
            the date of the enactment of this subtitle.

        (c) Implementation of Management Plan.--
                (1) Memorandum of understanding required.--The Secretary of
            the Army and the Secretary of the Interior shall enter into a
            memorandum of understanding to
    implement the management plan developed under subsection (b).
                (2) Duration.--The duration of any such memorandum of
            understanding shall be the same as the period of withdrawal
            specified in section 2908(a).
                (3) Amendment.--The memorandum of understanding may be
            amended by agreement of both Secretaries.

        (d) Use of Certain Resources.--The Secretary of the Army is
    authorized to utilize sand, gravel, or similar mineral or mineral
    material resources from the lands withdrawn by this subtitle when the
    use of such resources is required for construction needs of the Fort
    Carson Reservation or Pinon Canyon Maneuver Site.

    [[Page 110 STAT. 2810]]

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

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

    SEC. 2907. HUNTING, FISHING, AND TRAPPING.

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

    SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

        (a) Termination Date.--The withdrawal and reservation made by this
    subtitle shall terminate 15 years after the date of the enactment of
    this subtitle.
        (b) Determination of Continuing Military Need.--
                (1) Determination required.--At least three years before the
            termination under subsection (a) of the withdrawal and
            reservation established by this subtitle, the Secretary of the
            Army shall advise the Secretary of the Interior as to whether or
            not the Department of the Army will have a continuing military
            need for any of the lands after the termination date.
                (2) Method of making determination.--If the Secretary of the
            Army concludes under paragraph (1) that there will be a
            continuing military need for any of the lands after the
            termination date established by subsection (a), the Secretary of
            the Army, in accordance with applicable law, shall--
                        (A) evaluate the environmental effects of renewal of
                    such withdrawal and reservation;
                        (B) hold at least one public hearing in Colorado
                    concerning such evaluation; and
                        (C) file, after completing the requirements of
                    subparagraphs (A) and (B), an application for extension
                    of the withdrawal and reservation of such lands in
                    accordance with the regulations and procedures of the
                    Department of the Interior applicable to the extension
                    of withdrawals for military uses.
                (3) Notification.--The Secretary of the Interior shall
            notify the Congress concerning a filing under paragraph (3)(C).

        (c) Early Relinquishment of Withdrawal.--If the Secretary of the
    Army concludes under subsection (b) that before the termination date
    established by subsection (a) there will be no military need for all or
    any part of the lands withdrawn and reserved by this subtitle, or if,
    during the period of withdrawal, the Secretary of the Army otherwise
    decides to relinquish any or all of the lands withdrawn and reserved
    under this subtitle, the Secretary of the Army shall file with the
    Secretary of the Interior a notice of intention to relinquish such
    lands.
        (d) Acceptance of Lands Proposed for Relinquishment.--
    Notwithstanding any other provision of law, the Secretary of the
    Interior, upon deciding that it is in the public interest to accept
    jurisdiction over the lands proposed for relinquishment, may revoke

    [[Page 110 STAT. 2811]]

    the withdrawal and reservation established by this subtitle as it
    applies to the lands proposed for relinquishment. Should the decision be
    made to revoke the withdrawal and reservation, the Secretary of the
    Interior shall publish in the Federal Register an appropriate order
    which shall--
                (1) terminate the withdrawal and reservation;
                (2) constitute official acceptance of full jurisdiction over
            the lands by the Secretary of the Interior; and
                (3) state the date upon which the lands will be opened to
            the operation of the public land laws, including the mining laws
            if appropriate.
    SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND EFFECT
                              OF CONTAMINATION.

        (a) Determination of Presence of Contamination.--
                (1) Before relinquishment notice.--Before filing a
            relinquishment notice under section 2908(c), the Secretary of
            the Army shall prepare a written determination as to whether and
            to what extent the lands to be relinquished are contaminated
            with explosive, toxic, or other hazardous materials. A copy of
            the determination made by the Secretary of the Army shall be
            supplied with the relinquishment notice. <<NOTE: Federal
            Register, publication.>>  Copies of both the relinquishment
            notice and the determination under this subsection shall be
            published in the Federal Register by the Secretary of the
            Interior.
                (2) Upon termination of withdrawal.--At the expiration of
            the withdrawal period made by this Act, the Secretary of the
            Interior shall determine whether and to what extent the lands
            withdrawn by this subtitle are contaminated to an extent which
            prevents opening such contaminated lands to operation of the
            public land laws.

        (b) Program of Decontamination.--
                (1) In general.--Throughout the duration of the withdrawal
            and reservation made by this subtitle, the Secretary of the
            Army, to the extent funds are made available, shall maintain a
            program of decontamination of the lands
    withdrawn by this subtitle at least at the level of effort carried out
    during fiscal year 1992.
                (2) Decontamination of lands to be relinquished.--In the
            case of lands subject to a relinquishment notice under section
            2908(c) that are contaminated, the Secretary of the Army shall
            decontaminate the land to the extent that funds are appropriated
            for such purpose if the Secretary of the Interior, in
            consultation with the Secretary of the Army, determines that--
                        (A) decontamination of the lands is practicable and
                    economically feasible, taking into consideration the
                    potential future use and value of the land; and
                        (B) upon decontamination, the land could be opened
                    to the operation of some or all of the public land laws,
                    including the mining laws.

        (c) Authority of Secretary of the Interior To Refuse Contaminated
    Lands.--The Secretary of the Interior shall not be required to accept
    lands proposed for relinquishment if the Secretary of the Army and the
    Secretary of the Interior conclude that--

    [[Page 110 STAT. 2812]]

                (1) decontamination of any or all of the lands proposed for
            relinquishment is not practicable or economically feasible;
                (2) the lands cannot be decontaminated sufficiently to allow
            them to be opened to the operation of the public land
            laws; or
                (3) insufficient funds are appropriated for the purpose of
            decontaminating the lands.

        (d) Effect of Continued Contamination.--If the Secretary of the
    Interior declines under subsection (c) to accept jurisdiction of lands
    proposed for relinquishment or if the Secretary of the Interior
    determines under subsection (a)(2) that some of the lands withdrawn by
    this subtitle are contaminated to an extent that prevents opening the
    contaminated lands to operation of the public land laws--
                (1) the Secretary of the Army shall take appropriate steps
            to warn the public of the contaminated state of such lands and
            any risks associated with entry onto such lands;
                (2) after the expiration of the withdrawal, the Secretary of
            the Army shall undertake no activities on such lands except in
            connection with decontamination of such lands; and
                (3) the Secretary of the Army shall report to the Secretary
            of the Interior and to the Congress concerning the status of
            such lands and all actions taken under paragraphs (1) and (2).

        (e) Effect of Subsequent Decontamination.--If the lands described in
    subsection (d) are subsequently decontaminated, upon certification by
    the Secretary of the Army that the lands are safe for all nonmilitary
    uses, the Secretary of the Interior shall reconsider accepting
    jurisdiction over the lands.
        (f) Effect on Other Laws.--Nothing in this subtitle shall affect, or
    be construed to affect, the obligations of the Secretary of the Army, if
    any, to decontaminate lands withdrawn by this subtitle pursuant to
    applicable law, including the Comprehensive Environmental Response
    Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the
    Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

    SEC. 2910. DELEGATION.

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

    SEC. 2911. HOLD HARMLESS.

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

    [[Page 110 STAT. 2813]]

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

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

    SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

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

       Subtitle B <<NOTE: El Centro Naval Air Facility Ranges Withdrawal
    Act. California.>> --El Centro Naval Air Facility Ranges Withdrawal

    SEC. 2921. SHORT TITLE AND DEFINITIONS.

        (a) Short Title.--This subtitle may be cited as the ``El Centro
    Naval Air Facility Ranges Withdrawal Act''.
        (b) Definitions.--In this subtitle:
                (1) The term ``El Centro'' means the Naval Air Facility, El
            Centro, California.
                (2) The term ``cooperative agreement'' means the cooperative
            agreement entered into between the Bureau of Land Management,
            the Bureau of Reclamation, and the Department of the Navy, dated
            June 29, 1987, with regard to the defense-related uses of
            Federal lands to further the mission of El Centro.
                (3) The term ``relinquishment notice'' means a notice of
            intention by the Secretary of the Navy under section 2928(a) to
            relinquish, before the termination date specified in section
            2925, the withdrawal and reservation of certain lands withdrawn
            under this subtitle.
    SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL CENTRO.

        (a) Withdrawals.--Subject to valid existing rights, and except as
    otherwise provided in this subtitle, the Federal lands utilized in the
    mission of the Naval Air Facility, El Centro, California, that are
    described in subsection (c) are hereby withdrawn from all forms of
    appropriation under the public land laws, including the mining laws, but
    not the mineral leasing or geothermal leasing laws or the mineral
    materials sales laws.
        (b) Reservation.--The lands withdrawn under subsection (a) are
    reserved for the use by the Secretary of the Navy--
                (1) for defense-related purposes in accordance with the
            cooperative agreement; and
                (2) subject to notice to the Secretary of the Interior under
            section 2924(e), for other defense-related purposes determined
            by the Secretary of the Navy.

    [[Page 110 STAT. 2814]]

        (c) Description of Withdrawn Lands.--The lands withdrawn and
    reserved under subsection (a) are--
                (1) the Federal lands comprising approximately 46,600 acres
            in Imperial County, California, as generally depicted in part on
            a map entitled ``Exhibit A, Naval Air Facility, El Centro,
            California, Land Acquisition Map, Range 2510 (West Mesa)'' and
            dated March 1993 and in part on a map entitled ``Exhibit B,
            Naval Air Facility, El Centro, California, Land Acquisition Map
            Range 2512 (East Mesa)'' and dated March 1993; and
                (2) and all other areas within the boundaries of such lands
            as depicted on such maps that may become subject to the
            operation of the public land laws.

    SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

        (a) Publication and Filing Requirements.--As soon as practicable
    after the date of the enactment of this subtitle, the Secretary of the
    Interior shall--
                (1) <<NOTE: Federal Register, publication.>> publish in the
            Federal Register a notice containing the legal description of
            the lands withdrawn and reserved under this subtitle; and
                (2) file maps and the legal description of the lands
            withdrawn and reserved under this subtitle with the Committee on
            Energy and Natural Resources of the Senate and with the
            Committee on Resources of the House of Representatives.

        (b) Legal Effect.--The maps and legal description prepared under
    subsection (a) shall have the same force and effect as if they were
    included in this subtitle, except that the Secretary of the Interior may
    correct clerical and typographical errors in the maps and legal
    description.
        (c) Availability for Public Inspection.--Copies of the maps and
    legal description prepared under subsection (a) shall be available for
    public inspection in--
                (1) the Office of the State Director, California State
            Office of the Bureau of Land Management, Sacramento, California;
                (2) the Office of the District Manager, California Desert
            District of the Bureau of Land Management, Riverside,
            California; and
                (3) the Office of the Commanding Officer, Marine Corps Air
            Station, Yuma, Arizona.

        (d) Reimbursement.--The Secretary of Navy shall reimburse the
    Secretary of the Interior for the cost of implementing this section.

    SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

        (a) Management Consistent With Cooperative Agreement.--The lands and
    resources shall be managed in accordance with the cooperative agreement,
    revised as necessary to conform to the provisions of this subtitle. The
    parties to the cooperative agreement shall review the cooperative
    agreement for conformance with this subtitle and amend the cooperative
    agreement, if appropriate, within 120 days after the date of the
    enactment of this subtitle. The term of the cooperative agreement shall
    be amended so that its duration is at least equal to the duration of the
    withdrawal made by section 2925. The cooperative agreement may be
    reviewed and amended by the managing agencies as necessary.
        (b) Management by Secretary of the Interior.--

    [[Page 110 STAT. 2815]]

                (1) General management authority.--During the period of
            withdrawal, the Secretary of the Interior shall manage the lands
            withdrawn and reserved under this subtitle pursuant to the
            Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701
            et seq.) and other applicable laws, including this subtitle.
                (2) Specific authorities.--To the extent consistent with
            applicable laws, Executive orders, and the cooperative
            agreement, the lands withdrawn and reserved under this subtitle
            may be managed in a manner permitting--
                        (A) protection of wildlife and wildlife habitat;
                        (B) control of predatory and other animals;
                        (C) the prevention and appropriate suppression of
                    brush and range fires resulting from nonmilitary
                    activities; and
                        (D) geothermal leasing and development and related
                    power production, mineral leasing and development, and
                    mineral material sales.
                (3) Effect of withdrawal.--The Secretary of the Interior
            shall manage the lands withdrawn and reserved under this
            subtitle, in coordination with the Secretary of the Navy, such
            that all nonmilitary use of such lands, including the uses
            described in paragraph (2), shall be subject to such conditions
            and restrictions as may be necessary to permit the military use
            of such lands for the purposes specified in the cooperative
            agreement or authorized pursuant to this subtitle.

        (c) Certain Activities Subject to Concurrence of Navy.--The
    Secretary of the Interior may issue a lease, easement,
    right-of-way, or other authorization with respect to the nonmilitary use
    of the withdrawn lands only with the concurrence of the Secretary of the
    Navy and under the terms of the cooperative agreement.

        (d) Access Restrictions.--If the Secretary of the Navy determines
    that military operations, public safety, or national security require
    the closure to public use of any road, trail, or other portion of the
    lands withdrawn under this subtitle, the Secretary may take such action
    as the Secretary determines necessary or desirable to effect and
    maintain such closure. Any such closure shall be limited to the minimum
    areas and periods which the Secretary of the Navy determines are
    required to carry out this subsection. Before <<NOTE: Notification.>>
    and during any closure under this subsection, the Secretary of the Navy
    shall keep appropriate warning notices posted and take appropriate steps
    to notify the public concerning such closures.

        (e) Additional Military Uses.--Lands withdrawn under this subtitle
    may be used for defense-related uses other than those specified in the
    cooperative agreement. <<NOTE: Notification.>>  The Secretary of the
    Navy shall promptly notify the Secretary of the Interior in the event
    that the lands withdrawn under this subtitle will be used for additional
    defense-related purposes. Such notification shall indicate the
    additional use or uses involved, the proposed duration of such uses, and
    the extent to which such additional military uses of the withdrawn lands
    will require that additional or more stringent conditions or
    restrictions be imposed on otherwise-permitted nonmilitary uses of all
    or any portion of the withdrawn lands.

    [[Page 110 STAT. 2816]]

    SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

        The withdrawal and reservation made under this subtitle shall
    terminate 25 years after the date of the enactment of this subtitle.
    SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION ACTIVITIES.

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

    SEC. 2927. REQUIREMENTS FOR EXTENSION.

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

    SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

        (a) Filing of Relinquishment Notice.--If, during the period of
    withdrawal and reservation specified in section 2925, the Secretary of
    the Navy decides to relinquish all or any portion of the lands withdrawn
    and reserved under this subtitle, the Secretary of the Navy shall file a
    notice of intention to relinquish with the Secretary of the Interior.
        (b) Determination of Presence of Contamination.--Before transmitting
    a relinquishment notice under subsection (a), the Secretary of the Navy,
    in consultation with the Secretary of the Interior, shall prepare a
    written determination concerning whether and to what extent the lands to
    be relinquished are contaminated with explosive, toxic, or other
    hazardous wastes and substances. A copy of such determination shall be
    transmitted with the relinquishment notice.
        (c) Decontamination and Remediation.--In the case of contaminated
    lands which are the subject of a relinquishment notice, the Secretary of
    the Navy shall decontaminate or remediate the land to the extent that
    funds are appropriated for such purpose

    [[Page 110 STAT. 2817]]

    if the Secretary of the Interior, in consultation with the Secretary of
    the Navy, determines that--
                (1) decontamination or remediation of the lands is
            practicable and economically feasible, taking into consideration
            the potential future use and value of the land; and
                (2) upon decontamination or remediation, the land could be
            opened to the operation of some or all of the public land laws,
            including the mining laws.

        (d) Decontamination and Remediation Activities Subject to Other
    Laws.--The activities of the Secretary of the Navy under subsection (c)
    are subject to applicable laws
    and regulations, including the Defense Environmental Restoration Program
    established under section 2701 of title 10, United States Code, the
    Comprehensive Environmental Response Compensation and Liability Act of
    1980 (42 U.S.C. 9601 et seq.), and the Solid Waste Disposal Act (42
    U.S.C. 6901 et seq.).

        (e) Authority of Secretary of the Interior To Refuse Contaminated
    Lands.--The Secretary of the Interior shall not be required to accept
    lands specified in a relinquishment notice if the Secretary of the
    Interior, after consultation with the Secretary of the Navy, concludes
    that--
                (1) decontamination or remediation of any land subject to
            the relinquishment notice is not practicable or economically
            feasible;
                (2) the land cannot be decontaminated or remediated
            sufficiently to be opened to operation of some or all of the
            public land laws; or
                (3) a sufficient amount of funds are not appropriated for
            the decontamination of the land.

        (f) Status of Contaminated Lands.--If, because of the condition of
    the lands, the Secretary of the Interior declines to accept jurisdiction
    of lands proposed for relinquishment or, if at the expiration of the
    withdrawal made under this subtitle, the Secretary of the Interior
    determines that some of the lands withdrawn under this subtitle are
    contaminated to an extent which prevents opening such contaminated lands
    to operation of the public land laws--
                (1) <<NOTE: Safety.>>  the Secretary of the Navy shall take
            appropriate steps to warn the public of the contaminated state
            of such lands and any risks associated with entry onto such
            lands;
                (2) after the expiration of the withdrawal, the Secretary of
            the Navy shall retain jurisdiction over the withdrawn lands, but
            shall undertake no activities on such lands except in connection
            with the decontamination or remediation of such
            lands; and
                (3) <<NOTE: Reports.>>  the Secretary of the Navy shall
            report to the Secretary of the Interior and to the Congress
            concerning the status of such lands and all actions taken under
            paragraphs (1)
            and (2).

        (g) Subsequent Decontamination or Remediation.--If lands covered by
    subsection (f) are subsequently decontaminated or remediated and the
    Secretary of the Navy certifies that the lands are safe for nonmilitary
    uses, the Secretary of the Interior shall reconsider accepting
    jurisdiction over the lands.
        (h) Revocation Authority.--Notwithstanding any other provision of
    law, upon deciding that it is in the public interest to accept
    jurisdiction over lands specified in a relinquishment notice, the
    Secretary of the Interior may revoke the withdrawal and

    [[Page 110 STAT. 2818]]

    reservation made under this subtitle as it applies to such lands.
    If <<NOTE: Federal Register, publication.>>  the decision be made to
    accept the relinquishment and to revoke the withdrawal and reservation,
    the Secretary of the Interior shall publish in the Federal Register an
    appropriate order which shall--
                (1) terminate the withdrawal and reservation;
                (2) constitute official acceptance of full jurisdiction over
            the lands by the Secretary of the Interior; and
                (3) state the date upon which the lands will be opened to
            the operation of the public land laws, including the mining
            laws, if appropriate.

    SEC. 2929. DELEGATION OF AUTHORITY.

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

    SEC. 2930. HUNTING, FISHING, AND TRAPPING.

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

    SEC. 2931. HOLD HARMLESS.

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

                    DIVISION C--DEPARTMENT OF ENERGY NATIONAL

                SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

    Sec. 3101. Weapons activities.
    Sec. 3102. Environmental restoration and waste management.
    Sec. 3103. Defense fixed asset acquisition/privatization.
    Sec. 3104. Other defense activities.
    Sec. 3105. Defense nuclear waste disposal.

                    Subtitle B--Recurring General Provisions

    Sec. 3121. Reprogramming.
    Sec. 3122. Limits on general plant projects.
    Sec. 3123. Limits on construction projects.

    [[Page 110 STAT. 2819]]

    Sec. 3124. Fund transfer authority.
    Sec. 3125. Authority for conceptual and construction design.
    Sec. 3126. Authority for emergency planning, design, and construction
                          activities.
    Sec. 3127. Funds available for all national security programs of the
                          Department of Energy.
    Sec. 3128. Availability of funds.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Stockpile stewardship program.
    Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
    Sec. 3133. Tritium production.
    Sec. 3134. Modernization and consolidation of tritium recycling
                          facilities.
    Sec. 3135. Production of high explosives.
    Sec. 3136. Limitation on use of funds for certain research and
                          development
                          purposes.
    Sec. 3137. Prohibition on funding nuclear weapons activities with
                          People's Republic of China.
    Sec. 3138. International cooperative stockpile stewardship programs.
    Sec. 3139. Temporary authority relating to transfers of defense
                          environmental management funds.
    Sec. 3140. Management structure for nuclear weapons production
                          facilities and
                          nuclear weapons laboratories.
    Sec. 3141. Accelerated schedule for isolating high-level nuclear waste
                          at the
                          defense waste processing facility, Savannah River
                          Site.
    Sec. 3142. Processing and treatment of high-level nuclear waste and
                          spent nuclear fuel rods.
    Sec. 3143. Projects to accelerate closure activities at defense nuclear
                          facilities.
    Sec. 3144. Payment of costs of operation and maintenance of
                          infrastructure at
                          Nevada Test Site.

                            Subtitle D--Other Matters

    Sec. 3151. Report on plutonium pit production and remanufacturing plans.
    Sec. 3152. Amendments relating to baseline environmental management
                          reports.
    Sec. 3153. Requirement to develop future use plans for environmental
                          management program.
    Sec. 3154. Report on Department of Energy liability at Department
                          superfund sites.
    Sec. 3155. Requirement for annual five-year budget for the national
                          security
                          programs of the Department of Energy.
    Sec. 3156. Requirements for Department of Energy weapons activities
                          budgets for fiscal years after fiscal year 1997.
    Sec. 3157. Repeal of requirement relating to accounting procedures for
                          Department of Energy funds.
    Sec. 3158. Update of report on nuclear test readiness postures.
    Sec. 3159. Reports on critical difficulties at nuclear weapons
                          laboratories and
                          nuclear weapons production plants.
    Sec. 3160. Extension of applicability of notice-and-wait requirement
                          regarding
                          proposed cooperation agreements.
    Sec. 3161. Sense of Senate relating to redesignation of defense
                          environmental
                          restoration and waste management program.
    Sec. 3162. Commission on maintaining United States nuclear weapons
                          expertise.
    Sec. 3163. Sense of Congress regarding reliability and safety of
                          remaining nuclear forces.
    Sec. 3164. Study on worker protection at the Mound facility.
    Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement
                          Project, Livermore, California.
    Sec. 3166. Fellowship program for development of skills critical to
                          Department of Energy nuclear weapons complex.

        Subtitle E--Defense Nuclear Environmental Cleanup and Management

    Sec. 3171. Purpose.
    Sec. 3172. Applicability.
    Sec. 3173. Site manager.
    Sec. 3174. Department of Energy orders.
    Sec. 3175. Deployment of technology for remediation of defense nuclear
                          waste.
    Sec. 3176. Performance-based contracting.
    Sec. 3177. Designation of covered facilities as environmental cleanup
                          demonstration areas.
    Sec. 3178. Definitions.
    Sec. 3179. Termination.
    Sec. 3180. Report.

    [[Page 110 STAT. 2820]]

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

    Sec. 3181. Short title.
    Sec. 3182. Definitions.
    Sec. 3183. Management plan.
    Sec. 3184. Repeal of test phase and retrieval plans.
    Sec. 3185. Test phase activities.
    Sec. 3186. Disposal operations.
    Sec. 3187. Environmental Protection Agency disposal regulations.
    Sec. 3188. Compliance with environmental laws and regulations.
    Sec. 3189. Sense of Congress on commencement of emplacement of
                          transuranic waste.
    Sec. 3190. Decommissioning of WIPP.
    Sec. 3191. Authorizations for economic assistance and miscellaneous
                          payments.

              Subtitle A--National Security Programs Authorizations

    SEC. 3101. WEAPONS ACTIVITIES.

        (a) Stockpile Stewardship.--Subject to subsection (d), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for stockpile stewardship in carrying out weapons
    activities necessary for national security programs in the amount of
    $1,661,767,000, to be allocated as follows:
                (1) For core stockpile stewardship, $1,235,907,000, to be
            allocated as follows:
                        (A) For operation and maintenance, $1,147,570,000.
                        (B) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $88,337,000, to be allocated as
                    follows:
                              Project 96-D-102, stockpile stewardship
                          facilities revitalization, Phase VI, various
                          locations, $19,250,000.
                              Project 96-D-103, ATLAS, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $15,100,000.
                              Project 96-D-104, processing and environmental
                          technology laboratory (PETL), Sandia National
                          Laboratories, Albuquerque, New Mexico,
                          $14,100,000.
                              Project 96-D-105, contained firing facility
                          addition, Lawrence Livermore National Laboratory,
                          Livermore, California, $17,100,000.
                              Project 95-D-102, Chemical and Metallurgy
                          Research Building upgrades project, Los Alamos
    National Laboratory, Los Alamos, New Mexico, $15,000,000.
                              Project 94-D-102, nuclear weapons research,
                          development, and testing facilities
                          revitalization, Phase V, various locations,
                          $7,787,000.
                (2) For inertial fusion, $366,460,000, to be allocated
            as follows:
                        (A) For operation and maintenance, $234,560,000.
                        (B) For the following plant project (including
                    maintenance, restoration, planning, construction,
                    acquisition, and modification of facilities, and land
                    acquisition related thereto), $131,900,000 to be
                    allocated as follows:
                              Project 96-D-111, national ignition facility,
                          location to be determined, $131,900,000.
                (3) For technology transfer and education, $59,400,000.

    [[Page 110 STAT. 2821]]

        (b) Stockpile Management.--Subject to subsection (d), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for stockpile management in carrying out weapons
    activities necessary for national security programs in the amount of
    $1,962,831,000, to be allocated as follows:
                (1) For operation and maintenance, $1,868,470,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $94,361,000, to be allocated
            as follows:
                        Project 97-D-121, consolidated pit packaging system,
                    Pantex Plant, Amarillo, Texas, $870,000.
                        Project 97-D-122, nuclear materials storage facility
                    renovation, Los Alamos National Laboratory, Los Alamos,
                    New Mexico, $4,000,000.
                        Project 97-D-123, structural upgrades, Kansas City
                    Plant, Kansas City, Missouri, $1,400,000.
                        Project 97-D-124, steam plant wastewater treatment
                    facility upgrade, Y-12 Plant, Oak Ridge, Tennessee,
                    $600,000.
                        Project 96-D-122, sewage treatment quality upgrade
                    (STQU), Pantex Plant, Amarillo, Texas, $100,000.
                        Project 96-D-123, retrofit heating, ventilation, and
                    air conditioning and chillers for ozone protection, Y-12
                    Plant, Oak Ridge, Tennessee, $7,000,000.
                        Project 96-D-125, Washington measurements operations
                    facility, Andrews Air Force Base, Camp Springs,
                    Maryland, $3,825,000.
                        Project 95-D-122, sanitary sewer upgrade, Y-12
                    Plant, Oak Ridge, Tennessee, $10,900,000.
                        Project 94-D-124, hydrogen fluoride supply system,
                    Y-12 Plant, Oak Ridge, Tennessee, $4,900,000.
                        Project 94-D-125, upgrade life safety, Kansas City
                    Plant, Kansas City, Missouri, $5,200,000.
                        Project 94-D-127, emergency notification system,
                    Pantex Plant, Amarillo, Texas, $2,200,000.
                        Project 93-D-122, life safety upgrades, Y-12 Plant,
                    Oak Ridge, Tennessee, $7,200,000.
                        Project 93-D-123, complex-21, various locations,
                    $14,487,000.
                        Project 88-D-122, facilities capability assurance
                    program, various locations, $21,940,000.
                        Project 88-D-123, security enhancement, Pantex
                    Plant, Amarillo, Texas, $9,739,000.

        (c) Program Direction.--Subject to subsection (d), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1997 for program direction in carrying out weapons activities
    necessary for national security programs in the amount of $313,404,000.
        (d) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in subsections (a) through (c) reduced by $20,000,000 for
    use of prior year balances.

    [[Page 110 STAT. 2822]]

    SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) Environmental Restoration.--Subject to subsection (j), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for environmental restoration in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $1,762,194,000, of which
    $376,648,000 shall be allocated to the uranium enrichment
    decontamination and decommissioning fund.
        (b) Waste Management.--Subject to subsection (j), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1997 for waste management in carrying out environmental restoration
    and waste management activities necessary for national security programs
    in the amount of $1,578,653,000, to be allocated as follows:
                (1) For operation and maintenance, $1,490,326,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $88,327,000, to be allocated
            as follows:
                        Project 97-D-402, tank farm restoration and safe
                    operations, Richland, Washington, $7,584,000.
                        Project 96-D-408, waste management upgrades,
                    various locations, $11,246,000.
                        Project 95-D-402, install permanent electrical
                    service, Waste Isolation Pilot Plant, Carlsbad, New
                    Mexico, $752,000.
                        Project 95-D-405, industrial landfill V and
                    construction/demolition landfill VII, Y-12 Plant, Oak
                    Ridge,
                    Tennessee, $200,000.
                        Project 94-D-404, Melton Valley storage tank
                    capacity increase, Oak Ridge National Laboratory, Oak
                    Ridge,
                    Tennessee, $6,345,000.
                        Project 94-D-407, initial tank retrieval systems,
                    Richland, Washington, $12,600,000.
                        Project 93-D-182, replacement of cross-site transfer
                    system, Richland, Washington, $8,100,000.
                        Project 93-D-187, high-level waste removal from
                    filled waste tanks, Savannah River Site, Aiken, South
                    Carolina, $20,000,000.
                        Project 89-D-174, replacement high-level waste
                    evaporator, Savannah River Site, Aiken, South Carolina,
                    $11,500,000.
                        Project 86-D-103, decontamination and waste
                    treatment facility, Lawrence Livermore National
                    Laboratory, Livermore, California, $10,000,000.

        (c) Nuclear Materials and Facilities Stabilization.--Subject to
    subsection (j), funds are hereby authorized to be appropriated to the
    Department of Energy for fiscal year 1997 for nuclear materials and
    facilities stabilization in carrying out environmental restoration and
    waste management activities necessary for national security programs in
    the amount of $1,291,290,000 to be allocated as follows:
                (1) For operation and maintenance, $1,173,718,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,

    [[Page 110 STAT. 2823]]

            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $117,572,000, to be allocated
            as follows:
                        Project 97-D-450, Actinide packaging and storage
                    facility, Savannah River Site, Aiken, South Carolina,
                    $7,900,000.
                        Project 97-D-451, B-Plant safety class ventilation
                    upgrades, Richland, Washington, $1,500,000.
                        Project 97-D-470, environmental monitoring
                    laboratory, Savannah River Site, Aiken, South Carolina,
                    $2,500,000.
                        Project 97-D-473, health physics site support
                    facility, Savannah River Site, Aiken, South Carolina,
                    $2,000,000.
                        Project 96-D-406, spent nuclear fuels canister
                    storage and stabilization facility, Richland,
                    Washington, $60,672,000.
                        Project 96-D-461, electrical distribution upgrade,
                    Idaho National Engineering Laboratory, Idaho,
                    $6,790,000.
                        Project 96-D-464, electrical and utility systems
                    upgrade, Idaho Chemical Processing Plant, Idaho National
                    Engineering Laboratory, Idaho, $10,440,000.
                        Project 96-D-471, chlorofluorocarbon heating,
                    ventilation, and air conditioning and chiller retrofit,
                    Savannah River Site, Aiken, South Carolina, $8,541,000.
                        Project 95-E-600, hazardous materials management and
                    emergency response training center, Richland,
                    Washington, $7,900,000.
                        Project 95-D-155, upgrade site road infrastructure,
                    Savannah River Site, South Carolina, $4,137,000.
                        Project 95-D-456, security facilities consolidation,
                    Idaho Chemical Processing Plant, Idaho National
                    Engineering Laboratory, Idaho, $4,645,000.
                        Project 94-D-401, emergency response facility, Idaho
                    National Engineering Laboratory, Idaho, $547,000.

        (d) Program Direction.--Subject to subsection (j), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1997 for program direction in carrying out environmental
    restoration and waste management activities necessary for national
    security programs in the amount of $411,511,000.
        (e) Technology Development.--Subject to subsection (j), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for technology development in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $303,771,000.
        (f) Policy and Management.--Subject to subsection (j), funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for policy and management in carrying out environmental
    restoration and waste management activities necessary for national
    security programs in the amount of $23,155,000.
        (g) Environmental Science Program.--Subject to subsection (j), funds
    are hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1997 for the environmental science program in carrying out
    environmental restoration and waste management activities necessary for
    national security programs in the amount of $62,136,000.

    [[Page 110 STAT. 2824]]

        (h) Environmental Management Privatization.--Subject to subsection
    (j), funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1997 for environmental management privatization
    in carrying out environmental restoration and waste management
    activities necessary for national
    security programs in the amount of $185,000,000.
        (i) Closure Projects.--Subject to subsection (j), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1997 for closure projects selected under section 3143 in the amount
    of $50,000,000.
        (j) Adjustments.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts
    authorized to be appropriated in subsections (a) through (i) reduced by
    the sum of--
                (1) $150,400,000, for use of prior year balances; and
                (2) $8,000,000, for Savannah River Pension Refund.

    SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

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

    SEC. 3104. OTHER DEFENSE ACTIVITIES.

        (a) In General.--Subject to subsection (b), funds are hereby
    authorized to be appropriated to the Department of Energy for fiscal
    year 1997 for other defense activities in carrying
    out programs necessary for national security in the amount of
    $1,590,231,000, to be allocated as follows:
                (1) For verification and control technology, $456,348,000,
            to be allocated as follows:
                        (A) For nonproliferation and verification research
                    and development, $204,919,000.
                        (B) For arms control, $216,244,000.
                        (C) For intelligence, $35,185,000.
                (2) For nuclear safeguards and security, $47,208,000.
                (3) For security investigations, $22,000,000.
                (4) For emergency management, $16,794,000.
                (5) For program direction, $88,122,000.
                (6) For international nuclear safety, $15,200,000.
                (7) For environment, safety, and health, defense,
            $63,800,000.
                (8) For worker and community transition assistance,
            $67,000,000.
                (9) For fissile materials disposition, $93,796,000, to be
            allocated as follows:
                        (A) For operation and maintenance, $76,796,000.
                        (B) For the following plant project (including
                    maintenance, restoration, planning, construction,
                    acquisition, and modification of facilities, and land
                    acquisition related
                    thereto):
                              Project 97-D-140, consolidated special nuclear
                          materials storage facility, site to be determined,
                          $17,000,000.
                (10) For nuclear security/Russian production reactor
            shutdown, $6,000,000.
                (11) For naval reactors development, $681,932,000, to be
            allocated as follows:
                        (A) For operation and infrastructure, $649,330,000.

    [[Page 110 STAT. 2825]]

                        (B) For program direction, $18,902,000.
                        (C) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $13,700,000, to be allocated as
                    follows:
                              Project 97-D-201, advanced test reactor
                          secondary coolant refurbishment, Idaho National
                          Engineering Laboratory, Idaho, $400,000.
                              Project 95-D-200, laboratory systems and hot
                          cell upgrades, various locations, $4,800,000.
                              Project 95-D-201, advanced test reactor
                          radioactive waste system upgrades, Idaho National
                          Engineering Laboratory, Idaho, $500,000.
                              Project 90-N-102, expended core facility dry
                          cell project, Naval Reactors Facility, Idaho,
                          $8,000,000.

        (b) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in paragraphs (1) through (10) of subsection (a) reduced by
    $25,500,000 for use of prior year balances.

    SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

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

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--Until the Secretary of Energy submits to the
    congressional defense committees the report referred to in subsection
    (b) and a period of 30 days has elapsed after the date on which such
    committees receive the report, the Secretary may not use amounts
    appropriated pursuant to this title for any
    program--
                (1) in amounts that exceed, in a fiscal year--
                        (A) 110 percent of the amount authorized for that
                    program by this title; or
                        (B) $1,000,000 more than the amount authorized for
                    that program by this title; or
                (2) which has not been presented to, or requested of,
            Congress.

        (b) Report.--(1) The report referred to in subsection (a) is a
    report containing a full and complete statement of the action proposed
    to be taken and the facts and circumstances relied upon in support of
    such proposed action.
        (2) In the computation of the 30-day period under subsection (a),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (c) Limitations.--(1) In no event may the total amount of funds
    obligated pursuant to this title exceed the total amount authorized to
    be appropriated by this title.

    [[Page 110 STAT. 2826]]

        (2) Funds appropriated pursuant to this title may not be used for an
    item for which Congress has specifically denied funds.

    SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

        (a) In General.--The Secretary of Energy may carry out any
    construction project under the general plant projects authorized by this
    title if the total estimated cost of the construction project does not
    exceed $2,000,000.
        (b) Report to Congress.--If, at any time during the construction of
    any general plant project authorized by this title, the estimated cost
    of the project is revised because of unforeseen cost variations and the
    revised cost of the project exceeds $2,000,000, the Secretary shall
    immediately furnish a complete report to the congressional defense
    committees explaining the reasons for the cost variation.

        (c) Report on Permanent Authorization of Appropriations for General
    Plant Projects.--(1) Not later than February 1, 1997, the Secretary of
    Energy shall submit to the congressional defense committees a report on
    the desirability of a permanent authorization of appropriations for the
    defense general plant projects and civilian general plant projects of
    the Department of Energy.

        (2) If the Secretary determines for purposes of the report under
    paragraph (1) that a permanent authorization of appropriations is
    desirable, the report shall include--
                (A) recommendations for legislation to provide for a
            permanent authorization of appropriations, including a formula
            for adjusting for inflation the amount authorized to be
            appropriated for the projects to be covered by such
            authorization of appropriations; and
                (B) a description of the actions to be undertaken by the
            Secretary to control costs with respect to such projects,
            including any actions that may depend on the size, nature, or
            scope of the project concerned.

    SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

        (a) In General.--(1) Except as provided in paragraph (2),
    construction on a construction project may not be started or additional
    obligations incurred in connection with the project above the total
    estimated cost, whenever the current estimated cost of the construction
    project, which is authorized by section 3101, 3102, or 3103, or which is
    in support of national security programs of the Department of Energy and
    was authorized by any previous Act, exceeds by more than 25 percent the
    higher of--
                (A) the amount authorized for the project; or
                (B) the amount of the total estimated cost for the project
            as shown in the most recent budget justification data submitted
            to Congress.

        (2) An action described in paragraph (1) may be taken if--
                (A) the Secretary of Energy has submitted to the
            congressional defense committees a report on the actions and the
            circumstances making such action necessary; and
                (B) a period of 30 days has elapsed after the date on which
            the report is received by the committees.

        (3) In the computation of the 30-day period under paragraph (2),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.

    [[Page 110 STAT. 2827]]

        (b) Exception.--Subsection (a) shall not apply to any construction
    project which has a current estimated cost of less than $5,000,000.

    SEC. 3124. FUND TRANSFER AUTHORITY.

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

        (c) Notice to Congress.--The Secretary of Energy shall promptly
    notify the Committee on Armed Services of the Senate and the Committee
    on National Security of the House of Representatives of any transfer of
    funds to or from authorizations under this title.
    SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

        (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2)
    and except as provided in paragraph (3), before submitting to Congress a
    request for funds for a construction project that is in support of a
    national security program of the Department of Energy, the Secretary of
    Energy shall complete a conceptual design for that
    project. <<NOTE: Reports.>>  The Secretary shall submit to Congress a
    report on each conceptual design completed under this paragraph.

        (2) If the estimated cost of completing a conceptual design for a
    construction project exceeds $3,000,000, the Secretary shall submit to
    Congress a request for funds for the conceptual design before submitting
    a request for funds for the construction project.
        (3) The requirement in paragraph (1) does not apply to a request for
    funds--
                (A) for a construction project the total estimated cost of
            which is less than $2,000,000; or
                (B) for emergency planning, design, and construction
            activities under section 3126.

        (b) Authority for Construction Design.--(1) Within the amounts
    authorized by this title, the Secretary of Energy may

    [[Page 110 STAT. 2828]]

    carry out construction design (including architectural and engineering
    services) in connection with any proposed construction project if the
    total estimated cost for such design does not exceed $600,000.
        (2) If the total estimated cost for construction design in
    connection with any construction project exceeds $600,000, funds for
    such design must be specifically authorized by law.
    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND
                              CONSTRUCTION ACTIVITIES.

        (a) Authority.--The Secretary of Energy may use any funds available
    to the Department of Energy pursuant to an authorization in this title,
    including those funds authorized to be appropriated for advance planning
    and construction design under sections 3101, 3102, and 3103, to perform
    planning, design, and construction activities for any Department of
    Energy national security program construction project that, as
    determined by the Secretary, must proceed expeditiously in order to
    protect public health and safety, to meet the needs of national defense,
    or to protect property.
        (b) Limitation.--The Secretary may not exercise the authority under
    subsection (a) in the case of any construction project until the
    Secretary has submitted to the congressional defense committees a report
    on the activities that the Secretary intends to carry out under this
    section and the circumstances making such activities necessary.
        (c) Specific Authority.--The requirement of section 3125(b)(2) does
    not apply to emergency planning, design, and construction activities
    conducted under this section.
    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY
                              PROGRAMS OF THE DEPARTMENT OF ENERGY.

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

    SEC. 3128. AVAILABILITY OF FUNDS.

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    SEC. 3131. STOCKPILE STEWARDSHIP PROGRAM.

        (a) Purpose.--The purpose of this section is to provide for the
    enhanced implementation of the Department of Energy stockpile
    stewardship and management program, in order to provide greater
    confidence in the safety and continuing reliability of the nuclear
    weapons stockpile.
        (b) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101, $85,000,000 shall be
    available to enhance the Department's stockpile stewardship and
    management program for activities determined appropriate by the
    Secretary of Energy, including the following:
                (1) Enhanced surveillance of the nuclear weapons stockpile.

    [[Page 110 STAT. 2829]]

                (2) Dual revalidation of the warheads in the nuclear
            weapons stockpile.
                (3) Stockpile life extension programs.
                (4) Production capability assurance programs for critical
            non-nuclear components.
                (5) Accelerating capability to produce prototype war
            reserve-quality plutonium pits.
                (6) Conducting subcritical tests.

        (c) Report.--Not later than 60 days after the date of the enactment
    of this Act, the Secretary of Energy shall submit to the congressional
    defense committees a report on the obligations the Secretary has
    incurred, and plans to incur, during fiscal year 1997 for the funds made
    available by subsection (b).
    SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR
                              WEAPONS STOCKPILE.

        (a) General Program Requirements.--Subsection (a) of section 3137 of
    the National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 620; 42 U.S.C. 2121 note) is amended--
                (1) by inserting ``(1)'' before ``The Secretary of Energy'';
                (2) by redesignating paragraphs (1) through (5) as
            subparagraphs (A) through (E), respectively; and
                (3) by adding at the end the following:

        ``(2) The purpose of the program carried out under paragraph (1)
    shall also be to develop manufacturing capabilities and capacities
    necessary to meet the requirements specified in the annual Nuclear
    Weapons Stockpile Review.''.
        (b) Required Capabilities.--Subsection (b)(3) of such section is
    amended to read as follows:
                ``(3) The capabilities of the Savannah River Site relating
            to tritium recycling and fissile materials components processing
            and fabrication.''.

        (c) Plan and Report.--Not later than March 1, 1997, the Secretary of
    Energy shall submit to Congress a report containing a plan for carrying
    out the program established under section 3137(a) of the National
    Defense Authorization Act for Fiscal Year 1996, as amended by this
    section. The report shall set forth the obligations that the Secretary
    has incurred, and proposes to incur, during fiscal year 1997 in carrying
    out the program.
        (d) Funding.--Of the funds authorized to be appropriated pursuant to
    section 3101, $90,000,000 shall be available for carrying out the
    program established under section 3137(a) of the National Defense
    Authorization Act for Fiscal Year 1996, as so amended.

    SEC. 3133. TRITIUM PRODUCTION.

        (a) Acceleration of Tritium Production.--(1) The Secretary of Energy
    shall, during fiscal year 1997, make a final decision on the
    technologies to be utilized, and the accelerated schedule to be adopted,
    for tritium production in order to meet the requirements of the Nuclear
    Weapons Stockpile Memorandum relating to tritium production, including
    the new tritium production date of 2005 specified in the Nuclear Weapons
    Stockpile Memorandum.
        (2) In making the final decision, the Secretary shall take into
    account the following:
                (A) The requirements for tritium production specified in the
            Nuclear Weapons Stockpile Memorandum, including, in

    [[Page 110 STAT. 2830]]

            particular, the requirements for the ``upload hedge'' component
            of the nuclear weapons stockpile.
                (B) The ongoing activities of the Department of Energy
            relating to the evaluation and demonstration of technologies
            under the accelerator reactor program and the commercial light
            water reactor program.

        (b) Report.--(1) Not later than April 15, 1997, the Secretary shall
    submit to Congress a report that sets forth the final decision of the
    Secretary under subsection (a)(1). The report shall set forth in
    detail--
                (A) the technologies decided on under that subsection; and
                (B) the accelerated schedule for the production of tritium
            decided on under that subsection.

        (2) If the Secretary determines that it is not possible to make the
    final decision by the date specified in paragraph (1), the Secretary
    shall submit to Congress on that date a report that explains in detail
    why the final decision cannot be made by that date.
        (c) New Tritium Production Facility.--The Secretary shall commence
    planning and design activities and infrastructure development for a new
    tritium production facility.
        (d) In-Reactor Tests.--The Secretary may perform in-reactor tests of
    tritium target rods as part of the activities carried out under the
    commercial light water reactor program.
        (e) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101(b)(1), $160,000,000 shall
    be available for activities related to tritium production.
    SEC. 3134. <<NOTE: South Carolina.>>  MODERNIZATION AND
                              CONSOLIDATION OF TRITIUM RECYCLING
                              FACILITIES.

        (a) In General.--The Secretary of Energy shall carry out
    activities at the Savannah River Site, South Carolina, to--
                (1) modernize and consolidate the facilities for recycling
            tritium from weapons; and
                (2) provide a modern tritium extraction facility so as to
            ensure that such facilities have a capacity to recycle tritium
            from weapons that is adequate to meet the requirements for
            tritium for weapons specified in the Nuclear Weapons Stockpile
            Memorandum.

        (b) Funding.--Of the funds authorized to be appropriated to the
    Department of Energy pursuant to section 3101, not more than $9,000,000
    shall be available for activities under subsection (a).

    SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

        No funds appropriated or otherwise made available to the Department
    of Energy for fiscal year 1997 or any prior fiscal year may be used to
    move, or prepare to move, the manufacture and fabrication of high
    explosives and energetic materials for use as components in nuclear
    weapons systems from the Pantex Plant, Amarillo, Texas, to any other
    site or facility.
    SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND
                              DEVELOPMENT PURPOSES.

        (a) Limitation.--No funds authorized to be appropriated or otherwise
    made available to the Department of Energy for fiscal year 1997 under
    section 3101 may be obligated or expended for activities under the
    Department of Energy Laboratory Directed

    [[Page 110 STAT. 2831]]

    Research and Development Program, or under any Department of Energy
    technology transfer program or cooperative research and development
    agreement, unless such activities support the national security mission
    of the Department of Energy.
        (b) <<NOTE: 42 USC 7257b.>>  Annual Report.--(1) The Secretary of
    Energy shall annually submit to the congressional defense committees a
    report on the funds expended during the preceding fiscal year on
    activities under the Department of Energy Laboratory Directed Research
    and Development Program. The purpose of the report is to permit an
    assessment of the extent to which such activities support the national
    security mission of the Department of Energy.

        (2) Each report shall be prepared by the officials responsible for
    Federal oversight of the funds expended on activities under the program.
        (3) Each report shall set forth the criteria utilized by the
    officials preparing the report in determining whether or not the
    activities reviewed by such officials support the national security
    mission of the Department.
    SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS
                              ACTIVITIES WITH PEOPLE'S REPUBLIC OF
                              CHINA.

        (a) Funding Prohibition.--No funds authorized to be appropriated or
    otherwise available to the Department of Energy for fiscal year 1997 may
    be obligated or expended for any activity associated with the conduct of
    cooperative programs relating to nuclear weapons or nuclear weapons
    technology, including stockpile stewardship, safety, and use control,
    with the People's Republic of China.
        (b) Report.--(1) The Secretary of Energy shall prepare, in
    consultation with the Secretary of Defense, a report containing a
    description of all discussions and activities between the United States
    and the People's Republic of China regarding nuclear weapons matters
    that have occurred before the date of the enactment of this Act and that
    are planned to occur after such date. For each such discussion or
    activity, the report shall include--
                (A) the authority under which the discussion or activity
            took or will take place;
                (B) the subject of the discussion or activity;
                (C) participants or likely participants;
                (D) the source and amount of funds used or to be used to pay
            for the discussion or activity; and
                (E) a description of the actions taken or to be taken to
            ensure that no classified information or unclassified controlled
            information was or will be revealed, and a determination of
            whether classified information or unclassified controlled
            information was revealed in previous discussions.

        (2) The report shall be submitted to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives not later than January 15, 1997.
    SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP
                              PROGRAMS.

        (a) Funding Prohibition.--No funds authorized to be appropriated or
    otherwise available to the Department of Energy for fiscal year 1997 may
    be obligated or expended to conduct any activities associated with
    international cooperative stockpile stewardship.
        (b) Exception.--Subsection (a) does not apply--

    [[Page 110 STAT. 2832]]

                (1) with respect to such activities conducted between the
            United States and the United Kingdom and between the United
            States and France; and
                (2) to activities carried out under title XV of this Act
            (relating to cooperative threat reduction with states of the
            former Soviet Union).
    SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF DEFENSE
                              ENVIRONMENTAL MANAGEMENT FUNDS.

        (a) Transfer Authority for Defense Environmental Management Funds.--
    The Secretary of Energy shall provide the manager of each field office
    of the Department of Energy with the authority to transfer defense
    environmental management funds from a program or project under the
    jurisdiction of the office to another such program or project. Any such
    transfer may be made only once in a fiscal year to or from a program or
    project, and the amount transferred to or from a program or project may
    not exceed $5,000,000 in a fiscal year.
        (b) Determination.--A transfer may not be carried out by a manager
    of a field office pursuant to the authority provided under subsection
    (a) unless the manager determines that such transfer is necessary to
    address a risk
    to health, safety, or the environment or to assure the most efficient
    use of defense environmental management funds at that field office.

        (c) Exemption From Reprogramming Requirements.--The requirements of
    section 3121 shall not apply to transfers of funds pursuant to
    subsection (a).
        (d) Notification.--The Secretary of Energy, acting through the
    Assistant Secretary of Energy for Environmental Management, shall notify
    Congress of any transfer of funds pursuant to subsection (a) not later
    than 30 days after such a transfer occurs.
        (e) Limitation.--Funds transferred pursuant to subsection (a) may
    not be used for an item for which Congress has specifically denied funds
    or for a new program or project that has not been authorized by
    Congress.
        (f) Definitions.--In this section:
                (1) The term ``program or project'' means, with respect to a
            field office of the Department of Energy, any of the following:
                        (A) A project listed in subsection (b) or (c) of
                    section 3102 being carried out by the office.
                        (B) A program referred to in subsection (a), (b),
                    (c), (e), (g), or (h) of section 3102 being carried out
                    by the office.
                        (C) A project or program not described in
                    subparagraph (A) or (B) that is for environmental
                    restoration or waste management activities necessary for
                    national security programs of the Department of Energy,
                    that is being carried out by the office, and for which
                    defense environmental management funds have been
                    authorized and appropriated before the date of the
                    enactment of this Act.
                (2) The term ``defense environmental management funds''
            means funds appropriated to the Department of Energy pursuant to
            an authorization for carrying out environmental restoration and
            waste management activities necessary for national security
            programs.

    [[Page 110 STAT. 2833]]

        (g) Duration of Authority.--The authority provided under subsection
    (a) to a manager of a field office shall be in effect from the date of
    the enactment of this Act to September 30, 1997.
        (h) Report.--Not later than September 1, 1997, the Secretary of
    Energy shall submit to the congressional defense committees a report on
    the effectiveness of the authority provided under subsection (a) in
    meeting an objective specified in subsection (b). The report shall
    include recommendations on whether the duration of the authority, as
    provided in subsection (g), should be extended.
    SEC. 3140. <<NOTE: 42 USC 7252 note.>>  MANAGEMENT STRUCTURE FOR
                              NUCLEAR WEAPONS PRODUCTION FACILITIES
                              AND NUCLEAR WEAPONS
                              LABORATORIES.

        (a) Limitation on Delegation of Authority.--(1) The Secretary of
    Energy, in carrying out national security programs, may delegate
    specific management and planning authority over matters relating to site
    operation of the facilities and laboratories covered by this section
    only to the Assistant Secretary of Energy for Defense Programs. Such
    Assistant Secretary may redelegate such authority only to managers of
    area offices of the Department of Energy located at such facilities and
    laboratories.
        (2) Nothing in this section may be construed as affecting the
    delegation by the Secretary of Energy of authority relating to
    reporting, management, and oversight of matters relating to the
    Department of Energy generally, or safety, environment, and health at
    such facilities and laboratories.
        (b) Requirement To Consult With Area Offices.--The Assistant
    Secretary of Energy for Defense Programs, in exercising any delegated
    authority to oversee management of matters relating to site operation of
    a facility or laboratory, shall exercise such authority only after
    direct consultation with the manager of the area office of the
    Department of Energy located at the facility or laboratory.
        (c) <<NOTE: Reports.>>  Requirement for Direct Communication From
    Area Offices.--The Secretary of Energy, acting through the Assistant
    Secretary of Energy for Defense Programs, shall require the head of each
    area office of the Department of Energy located at each facility and
    laboratory covered by this section to report on matters relating to site
    operation other than those matters set forth in subsection (a)(2)
    directly to the Assistant Secretary of Energy for Defense Programs,
    without obtaining the approval or concurrence of any other official
    within the Department of Energy.

        (d) Defense Programs Reorganization Plan and Report.--(1) The
    Secretary of Energy shall develop a plan to reorganize the field
    activities and management of the national security functions of the
    Department of Energy.
        (2) Not later than 120 days after the date of the enactment of this
    Act, the Secretary shall submit to Congress a report on the plan
    developed under paragraph (1). The report shall specifically identify
    all significant functions performed by the operations offices relating
    to any of the facilities and laboratories covered by this section and
    which of those functions could be performed--
                (A) by the area offices of the Department of Energy located
            at the facilities and laboratories covered by this section; or
                (B) by the Assistant Secretary of Energy for Defense
            Programs.

    [[Page 110 STAT. 2834]]

        (3) The report also shall address and make recommendations with
    respect to other internal streamlining and reorganization
    initiatives that the Department could pursue with respect to military or
    national security programs.
        (e) <<NOTE: Establishment.>>  Defense Programs Management Council.--
    The Secretary of Energy shall establish a council to be known as the
    ``Defense Programs Management Council''. The Council shall advise the
    Secretary on policy matters, operational concerns, strategic planning,
    and development of priorities relating to the national security
    functions of the Department of Energy. The Council shall be composed of
    the directors of the facilities and laboratories covered by this section
    and shall report directly to the Assistant Secretary of Energy for
    Defense Programs.

        (f) Covered Site Operations.--For purposes of this section, matters
    relating to site operation of a facility or laboratory
    include matters relating to personnel, budget, and procurement in
    national security programs.
        (g) <<NOTE: Applicability.>>  Covered Facilities and Laboratories.--
    This section applies to the following facilities and laboratories of the
    Department of Energy:
                (1) The Kansas City Plant, Kansas City, Missouri.
                (2) The Pantex Plant, Amarillo, Texas.
                (3) The Y-12 Plant, Oak Ridge, Tennessee.
                (4) The Savannah River Site, Aiken, South Carolina.
                (5) Los Alamos National Laboratory, Los Alamos, New Mexico.
                (6) Sandia National Laboratories, Albuquerque, New
            Mexico.
                (7) Lawrence Livermore National Laboratory, Livermore,
            California.
                (8) The Nevada Test Site, Nevada.
    SEC. 3141. <<NOTE: South Carolina.>>  ACCELERATED SCHEDULE FOR
                              ISOLATING HIGH-LEVEL NUCLEAR WASTE AT
                              THE DEFENSE WASTE PROCESSING FACILITY,
                              SAVANNAH RIVER SITE.

        The Secretary of Energy shall accelerate the schedule for the
    isolation of high-level nuclear waste in glass canisters at the Defense
    Waste Processing Facility at the Savannah River Site, South Carolina, if
    the Secretary determines that the acceleration of such schedule--
                (1) will achieve long-term cost savings to the Federal
            Government; and
                (2) could accelerate the removal and isolation of high-level
            nuclear waste from long-term storage tanks at the site.
    SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE
                              AND SPENT NUCLEAR FUEL RODS.

        (a) In General.--(1) In order to provide for an effective response
    to requirements for managing the spent nuclear fuel described in
    paragraph (2), there shall be available to the Secretary of Energy, from
    amounts authorized to be appropriated pursuant to section 3102(c), the
    following amounts for the purposes stated:
                (A) Not more than $43,000,000 for the development and
            implementation of a program to accelerate the receipt,
            processing (including the H-canyon restart operations),
            reprocessing, separation, reduction, deactivation,
            stabilization, isolation, and interim storage of high-level
            nuclear waste associated with

    [[Page 110 STAT. 2835]]

            Department of Energy aluminum clad spent fuel rods, foreign
            spent fuel rods, and other nuclear materials.
                (B) Not more than $15,000,000 for the development and
            implementation of a program for the receipt, treatment,
            preparation, conditioning, interim storage, and final
            disposition of high-level nuclear waste and spent nuclear fuel
            (including naval spent nuclear fuel), non-aluminum clad fuel
            rods, and foreign fuel rods.

        (2) The spent nuclear fuel referred to in paragraph (1) is the
    following:
                (A) Spent nuclear fuel that is sent to Department of Energy
            consolidation sites pursuant to the Department of Energy
            Programmatic Spent Nuclear Fuel Management and Idaho National
            Engineering Laboratory Environmental Restoration and Waste
            Management Programs Final Environmental Impact Statement, dated
            April 1995.
                (B) Spent nuclear fuel described in the Interim Management
            of Nuclear Materials Environmental Impact Statement, dated
            October 1995.
                (C) Other spent nuclear fuel located at the Savannah River
            Site as of the date of the enactment of this Act.

        (3) The amounts made available under paragraph (1) are in addition
    to other amounts authorized to be appropriated by section 3102(c) for
    the purposes stated in subparagraphs (A) and (B) of that paragraph.
        (b) <<NOTE: Idaho.>>  Use of Funds for Settlement Agreement.--Funds
    made available pursuant to subsection (a)(1)(B) for the Idaho National
    Engineering Laboratory shall be considered to be funds made available in
    partial fulfillment of the terms and obligations set forth in the
    settlement agreement entered into by the United States with the State of
    Idaho in the actions captioned Public Service Co. of Colorado v. Batt,
    Civil No. 91-0035-S-EJL, and United States v. Batt, Civil No. 91-0054-S-
    EJL, in the United States District Court for the District of Idaho and
    the consent order of the United States District Court for the District
    of Idaho, dated October 17, 1995, that effectuates the settlement
    agreement.

        (c) Amendments to Implementation Plan for Managing Spent Nuclear
    Fuel at Certain Sites.--Section 3142(b) of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    622) is amended--
                (1) by striking out ``April 30, 1996'' and inserting in lieu
            thereof ``September 30, 1996'';
                (2) by striking out ``and'' at the end of paragraph (3);
                (3) by striking out the period at the end of paragraph (4)
            and inserting in lieu thereof ``; and''; and
                (4) by adding at the end the following new paragraph:
                ``(5) an assessment of the progress made in implementing the
            programs.''.

        (d) <<NOTE: South Carolina.>>  Near-Term Plan for Processing Spent
    Fuel Rods at Savannah River Site.--(1) Not later than March 15, 1997,
    the Secretary of Energy shall submit to Congress a plan for a near-term
    program to process, treat, package, and dispose of spent nuclear fuel
    rods described in paragraph (2) at the Savannah River Site. The plan
    shall include cost projections and resource requirements for the program
    and identify program milestones for the program.

    [[Page 110 STAT. 2836]]

        (2) The spent nuclear fuel rods to be included in the program
    referred to in paragraph (1) are the following:
                (A) Spent nuclear fuel rods produced at the Savannah River
            Site.
                (B) Spent nuclear fuel rods being sent to the site from
            other Department of Energy facilities for processing, interim
            storage, and other treatment.
                (C) Foreign spent nuclear fuel rods being sent to the site
            for processing, interim storage, and other treatment.

        (e) Multi-Year Plan for Clean-Up at Savannah River Site.--The
    Secretary shall develop and implement a multi-year plan for the clean-up
    of nuclear waste at the Savannah River Site that results, or has
    resulted, from the following:
                (1) Nuclear weapons activities carried out at the site.
                (2) The processing, treating, packaging, and disposal of
            Department of Energy domestic and foreign spent nuclear fuel
            rods at the site.

        (f) Requirement for Continuing Operations at Savannah River Site.--
    The Secretary shall continue operations and maintain a high state of
    readiness at the H-canyon facility and the F-canyon facility at the
    Savannah River Site, and shall provide technical staff necessary to
    operate and so maintain such facilities, pending the development and
    implementation of the plan referred to in subsection (e).
    SEC. 3143. <<NOTE: 42 USC 7274n.>>  PROJECTS TO ACCELERATE CLOSURE
                              ACTIVITIES AT DEFENSE NUCLEAR
                              FACILITIES.

        (a) In General.--The Secretary of Energy shall select and carry out
    closure-acceleration projects in accordance with this
    section.
        (b) Purpose.--The purpose of a closure-acceleration project shall
    be, within a fixed period of time, to clean up or decommission a
    Department of Energy defense nuclear facility or portion thereof and to
    make the facility safe by stabilizing, consolidating, treating, or
    removing nuclear materials from the facility in order to reduce
    significantly or eliminate future costs at the facility.
        (c) Eligible Projects.--(1) The Secretary of Energy may establish a
    closure-acceleration project as eligible for selection under subsection
    (e) by--
                (A) developing a plan for the project that meets the
            criteria under paragraph (2); and
                (B) determining that the project will achieve significant
            long-term cost savings to the Federal Government from the
            baseline cost estimate made by the Department of Energy for the
            project.

        (2) A plan for a closure-acceleration project under this
    section shall--
                (A) define a clear, delineated scope of work for completion
            of the project;
                (B) demonstrate that, with respect to the site of the
            proposed project, there is a regulatory agreement between the
            Department of Energy and other appropriate authorities for the
            implementation of environmental remediation requirements that
            would allow for successful completion of the project;
                (C) demonstrate, to the maximum extent possible, the support
            of State and local elected officials and the public for the
            project;

    [[Page 110 STAT. 2837]]

                (D) contain performance-based provisions to be included in
            the contract for the project, including--
                        (i) clearly stated and results-oriented performance
                    criteria and measures;
                        (ii) appropriate incentives for the contractor to
                    meet and exceed the performance criteria effectively and
                    efficiently;
                        (iii) appropriate criteria and incentives for the
                    con-
                    tractor to seek and engage subcontractors who may more
                    effectively and efficiently perform either unique and
                    technologically challenging tasks or routine and
                    interchangeable services;
                        (iv) specific incentives for cost savings;
                        (v) financial accountability; and
                        (vi) when appropriate, reduction of fee for failure
                    to meet minimum performance criteria and standards;
                (E) demonstrate that the project will use new and innovative
            cleanup and waste management technology with potential for
            application to other locations and facilities without requiring
            the development of new technologies; and
                (F) demonstrate that the project can be completed within 10
            years from the date of its selection.

        (d) Program Administration.--The Secretary of Energy, acting through
    the Assistant Secretary for Environmental Management, shall implement a
    program to carry out the provisions of this section.
        (e) Selection of Projects.--(1) The Secretary of Energy shall select
    closure-acceleration projects to be carried out under this section from
    among those projects established as eligible under subsection (c) that
    will result in the most significant long-term cost savings to the
    Government and the most significant reduction of imminent risk.
        (2) <<NOTE: Reports.>>  For each project selected, the Secretary
    shall submit to Congress a report setting forth the reasons why the
    project was selected, based on the criteria under subsection (c)(2) and
    paragraph (1) of this subsection.

        (f) Multiyear Contracts.--Notwithstanding section 304B(d) of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    254c(d)), the Secretary of Energy may enter into multi-
    year contracts to carry out projects selected under this section for up
    to 10 program years.
        (g) <<NOTE: President.>>  Funding.--(1) In the budget submitted to
    Congress under section 1105(a) of title 31, United States Code, each
    year, the President shall set forth funds for carrying out closure-
    acceleration projects under this section as a separate item in the
    environmental restoration and waste management account of the Department
    of Energy budget.

        (2) Funds appropriated for purposes of carrying out projects under
    this section shall remain available until expended.
        (3) If a closure-acceleration project is being carried out at a
    defense nuclear facility with funds appropriated for such projects, the
    Secretary of Energy may not reduce the funds otherwise allocated to that
    defense nuclear facility for environmental restoration and waste
    management by reason of the funds being used for the project at that
    facility.
        (4) Funds appropriated for purposes of carrying out projects under
    this section may not be used for an item for which Congress

    [[Page 110 STAT. 2838]]

    has specifically denied funds or for a new program or project that has
    not been authorized by Congress.
        (h) Annual Report.--The Secretary of Energy shall submit each year
    to Congress a report on the status of each closure-acceleration project
    being carried out under this section. The report shall include, for each
    such project, the following:
                (1) A description of the funding already provided for the
            project.
                (2) A description of the extent of the cleanup,
            decommissioning, stabilization, consolidation, treatment, or
            removal activities completed.
                (3) A comparison of the actual results of the project to the
            original proposal and the actual cost of the project to the
            originally proposed cost.
                (4) A description of the funding needed in future fiscal
            years for completion of the project.

        (i) Duration of Program.--No closure-acceleration project selected
    under this section may be carried out after the expiration of the 15-
    year period beginning on the date of the enactment of this Act.
        (j) Savings Provision.--Nothing in this section may be construed to
    affect statutory requirements for an environmental restoration or waste
    management activity or project or to modify or otherwise affect
    applicable statutory or regulatory environmental restoration and waste
    management requirements, including substantive standards intended to
    protect public health and the environment, nor shall anything in this
    section be construed to preempt or impair any local land use planning or
    zoning authority or State authority.
    SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF
                              INFRASTRUCTURE AT NEVADA TEST SITE.

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

                            Subtitle D--Other Matters

    SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND RE-
                              MANUFACTURING PLANS.

        (a) Report Requirement.--The Secretary of Energy shall submit to the
    congressional defense committees a report on plans for achieving the
    capability to produce and remanufacture plutonium pits. The report shall
    include a description of the baseline plan of the Department of Energy
    for achieving such capability, including the following:
                (1) The funding necessary, by fiscal year, to achieve the
            capability.
                (2) The schedule necessary to achieve the capability,
            including important technical and programmatic milestones.

    [[Page 110 STAT. 2839]]

                (3) Siting, capacity for expansion, and other issues
            included in the baseline plan.

        (b) Deadline.--The report required by subsection (a) shall be
    submitted not later than 60 days after the date of the enactment of this
    Act.
    SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL
                              MANAGEMENT REPORTS.

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

        (a) Authority To Develop Future Use Plans.--The Secretary of Energy
    may develop future use plans for any defense nuclear facility at which
    environmental restoration and waste management activities are occurring.
        (b) Requirement To Develop Future Use Plans.--The Secretary shall
    develop a future use plan for each of the following defense nuclear
    facilities:
                (1) Hanford Site, Richland, Washington.
                (2) Rocky Flats Plant, Golden, Colorado.
                (3) Savannah River Site, Aiken, South Carolina.
                (4) Idaho National Engineering Laboratory, Idaho.

        (c) <<NOTE: Establishment.>>  Citizen Advisory Board.--(1) At each
    defense nuclear facility for which the Secretary of Energy intends or is
    required to develop a future use plan under this section and for which
    no citizen advisory board has been established, the Secretary shall
    establish a citizen advisory board.

        (2) The Secretary may authorize the manager of a defense nuclear
    facility for which a future use plan is developed under this section
    (or, if there is no such manager, an appropriate official of the
    Department of Energy designated by the Secretary) to pay routine
    administrative expenses of a citizen advisory board established for that
    facility. Such payments shall be made from funds available to the
    Secretary for program direction in carrying out environmental
    restoration and waste management activities necessary for national
    security programs.
        (d) Requirement To Consult With Citizen Advisory Board.--In
    developing a future use plan under this section with respect to a
    defense nuclear facility, the Secretary of Energy shall

    [[Page 110 STAT. 2840]]

    consult with a citizen advisory board established pursuant to subsection
    (c) or a similar advisory board already in existence as of the date of
    the enactment of this Act for such facility, affected local governments
    (including any local future use redevelopment authorities), and other
    appropriate State agencies.

        (e) 50-Year Planning Period.--A future use plan developed under this
    section shall cover a period of at least 50 years.
        (f) Deadlines.--For each facility listed in subsection (b), the
    Secretary of Energy shall develop a draft future use plan by October 1,
    1997, and a final future use plan by March 15, 1998.
        (g) Report.--Not later than 60 days after completing development of
    a final plan for a site listed in subsection (b), the Secretary of
    Energy shall submit to Congress a report on the plan. The report shall
    describe the plan and contain such findings and recommendations with
    respect to the site as the Secretary considers appropriate.
        (h)  Savings Provisions.--(1) Nothing in this section, or in a
    future use plan developed under this section with respect to a defense
    nuclear facility, shall be construed as requiring any modification to a
    future use plan with respect to a defense nuclear facility that was
    developed before the date of the enactment of this Act.
        (2) Nothing in this section may be construed to affect statutory
    requirements for an environmental restoration or waste management
    activity or project or to modify or otherwise affect applicable
    statutory or regulatory environmental restoration and waste management
    requirements, including substantive standards intended to protect public
    health and the environment, nor shall anything in this section be
    construed to preempt or impair any local land use planning or zoning
    authority or State authority.
    SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT DEPARTMENT
                              SUPERFUND SITES.

        (a) Study.--The Secretary of Energy shall, using funds authorized to
    be appropriated to the Department of Energy by section 3102, carry out a
    study to determine the extent and valuation of the injury to,
    destruction of, or loss of natural resources under section 107(a)(4)(C)
    of the Comprehensive Environmental Response, Compensation, and Liability
    Act of 1980 (42 U.S.C. 9607(a)(4)(C)) at each site controlled or
    operated by the Department that is or is anticipated to become subject
    to the provisions of that Act.
        (b) Conduct of Study.--(1) The Secretary shall carry out the study
    using personnel of the Department or by contract with an appropriate
    private entity.
        (2) In determining the extent and valuation of the injury to,
    destruction of, or loss of natural resources for purposes of the study,
    the Secretary shall--
                (A) treat the Department as a private person liable for
            response, removal, and remediation costs and damages under
            section 107(a)(4) of that Act (42 U.S.C. 9607(a)(4)) and subject
            to an action for damages by public trustees of natural resources
            under section 107(f) of that Act (42 U.S.C. 9607(f)) or by any
            other person pursuant to section 107(e) or 113(f) of that Act
            (42 U.S.C. 9607(e) and 9613(f)); and
                (B) determine the value of natural resource damages
            associated with each site in accordance with all regulations
            promulgated under section 301(c) of that Act (42 U.S.C.
            9651(c)).

    [[Page 110 STAT. 2841]]

        (c) Report.--Not later than 90 days after the date of the enactment
    of this Act, the Secretary shall submit a report on the study carried
    out under subsection (a) to the following
    committees:
                (1) The Committees on Environment and Public Works, Armed
            Services, and Energy and Natural Resources of the Senate.
                (2) The Committees on Commerce, National Security,
            Transportation and Infrastructure, and Resources of the House of
            Representatives.
    SEC. 3155. <<NOTE: 42 USC 7271b.>>  REQUIREMENT FOR ANNUAL FIVE-
                              YEAR BUDGET FOR THE NATIONAL SECURITY
                              PROGRAMS OF THE DEPARTMENT OF ENERGY.

        (a) Requirement.--The Secretary of Energy shall prepare each year a
    budget for the national security programs of the Department of Energy
    for the five-year period beginning in the year the budget is prepared.
    Each budget shall contain the estimated expenditures and proposed
    appropriations necessary to support the programs, projects, and
    activities of the national security programs during the five-year period
    covered by the budget and shall be at a level of detail comparable to
    that contained in the budget submitted by the President to Congress
    under section 1105 of title 31, United States Code.
        (b) Submittal.--The Secretary shall submit each year to the
    congressional defense committees the budget required under subsection
    (a) in that year at the same time as the President submits to Congress
    the budget for the coming fiscal year pursuant to such section 1105.
    SEC. 3156. <<NOTE: 42 USC 7271c.>>  REQUIREMENTS FOR DEPARTMENT OF
                              ENERGY WEAPONS ACTIVITIES BUDGETS FOR
                              FISCAL YEARS AFTER FISCAL YEAR 1997.

        (a) In General.--The weapons activities budget of the Department of
    Energy for any fiscal year after fiscal year 1997 shall--
                (1) set forth with respect to each of the activities under
            the budget (including stockpile stewardship, stockpile
            management, and program direction) the funding requested to
            carry out each project or activity that is necessary to meet the
            requirements of the Nuclear Weapons Stockpile Memorandum; and
                (2) identify specific infrastructure requirements arising
            from the Nuclear Posture Review, the Nuclear Weapons Stockpile
            Memorandum, and the programmatic and technical requirements
            associated with the review and memorandum.

        (b) Required Detail.--The Secretary of Energy shall include in the
    materials that the Secretary submits to Congress in support of the
    budget for any fiscal year after fiscal year 1997 that is submitted by
    the President pursuant to section 1105 of title 31, United States Code,
    the following:
                (1) A long-term program plan, and a near-term program plan,
            for the certification and stewardship of the nuclear
            weapons stockpile.
                (2) An assessment of the effects of the plans referred to in
            paragraph (1) on each nuclear weapons laboratory and each
            nuclear weapons production plant.

        (c) Definitions.--In this section:

    [[Page 110 STAT. 2842]]

                (1) The term ``Nuclear Posture Review'' means the Department
            of Defense Nuclear Posture Review as contained in the report of
            the Secretary of Defense to the President and Congress dated
            February 19, 1995, or in subsequent such reports.
                (2) The term ``nuclear weapons laboratory'' means the
            following:
                        (A) Lawrence Livermore National Laboratory,
                    California.
                        (B) Los Alamos National Laboratory, New Mexico.
                        (C) Sandia National Laboratories.
                (3) The term ``nuclear weapons production plant'' means the
            following:
                        (A) The Pantex Plant, Texas.
                        (B) The Savannah River Site, South Carolina.
                        (C) The Kansas City Plant, Missouri.
                        (D) The Y-12 Plant, Oak Ridge, Tennessee.
    SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING PROCEDURES
                              FOR DEPARTMENT OF ENERGY FUNDS.

        Section 3151 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 3089) is repealed.
    SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS
                              POSTURES.

        Not later than June 1, 1997, the Secretary of Energy shall submit to
    Congress a report which updates the report submitted by the Secretary
    under section 3152 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 623). The updated report shall
    include the matters specified under such section, current as of the date
    of the updated report.
    SEC. 3159. <<NOTE: 42 USC 7274o.>>  REPORTS ON CRITICAL
                              DIFFICULTIES AT NUCLEAR
                              WEAPONS LABORATORIES AND NUCLEAR WEAPONS
                              PRODUCTION PLANTS.

        (a) Reports by Heads of Laboratories and Plants.--In the event of a
    difficulty at a nuclear weapons laboratory or a nuclear weapons
    production plant that has a significant bearing on confidence in the
    safety or reliability of a nuclear weapon or nuclear weapon type, the
    head of the laboratory or plant, as the case may be, shall submit to the
    Assistant Secretary of Energy for Defense Programs a report on the
    difficulty. The head of the laboratory or plant shall submit the report
    as soon as practicable after discovery of the difficulty.
        (b) Transmittal by Assistant Secretary.--As soon as practicable
    after receipt of a report under subsection (a), the Assistant Secretary
    shall transmit the report (together with the comments of the Assistant
    Secretary) to the congressional defense committees and to the Secretary
    of Energy and the Secretary of Defense.
        (c) Reports by Nuclear Weapons Council.--Section 179 of title 10,
    United States Code, is amended--
                (1) by redesignating subsection (e) as subsection (f); and
                (2) by inserting after subsection (d) the following new
            subsection (e):

        ``(e) In addition to the responsibilities set forth in subsection
    (d), the Council shall also submit to Congress a report on any analysis
    conducted by the Council with respect to difficulties at nuclear weapons
    laboratories or nuclear weapons production plants

    [[Page 110 STAT. 2843]]

    that have significant bearing on confidence in the safety or reliability
    of nuclear weapons or nuclear weapon types.''.
        (d) Definitions.--In this section:
                (1) The term ``nuclear weapons laboratory'' means the
            following:
                        (A) Lawrence Livermore National Laboratory,
                    California.
                        (B) Los Alamos National Laboratory, New Mexico.
                        (C) Sandia National Laboratories.
                (2) The term ``nuclear weapons production plant'' means the
            following:
                        (A) The Pantex Plant, Texas.
                        (B) The Savannah River Site, South Carolina.
                        (C) The Kansas City Plant, Missouri.
                        (D) The Y-12 Plant, Oak Ridge, Tennessee.
    SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT
                              REQUIREMENT REGARDING PROPOSED
                              COOPERATION AGREEMENTS.

        Section 3155(b) of the National Defense Authorization Act for Fiscal
    Year 1995 (42 U.S.C. 2153 note) is amended by striking out ``October 1,
    1996'' and inserting in lieu thereof ``October 1, 1997''.
    SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF DEFENSE
                              ENVIRONMENTAL RESTORATION AND WASTE
                              MANAGEMENT PROGRAM.

        (a) Sense of Senate.--It is the sense of the Senate that the program
    of the Department of Energy known as the Defense Environmental
    Restoration and Waste Management Program, and also known as the
    Environmental Management Program, be redesignated as the Defense Nuclear
    Waste Management Program of the Department of Energy.
        (b) Report on Redesignation.--Not later than January 31, 1997, the
    Secretary of Energy shall submit to the congressional defense committees
    a report on the costs and other difficulties, if any, associated with
    the following:
                (1) The redesignation of the program known as the Defense
            Environmental Restoration and Waste Management Program, and also
            known as the Environmental Management Program, as the Defense
            Nuclear Waste Management Program of the Department of Energy.
                (2) The redesignation of the Defense Environmental
            Restoration and Waste Management Account as the Defense Nuclear
            Waste Management Account.
    SEC. 3162. <<NOTE: 42 USC 2121 note.>>  COMMISSION ON MAINTAINING
                              UNITED STATES NUCLEAR WEAPONS EXPERTISE.

        (a) Establishment.--There is hereby established a commission to be
    known as the ``Commission on Maintaining United States Nuclear Weapons
    Expertise'' (in this section referred to as the ``Commission'').

        (b) Organizational Matters.--(1)(A) The Commission shall be composed
    of eight members appointed from among individuals in the public and
    private sectors who have significant experience in matters relating to
    nuclear weapons, as follows:
                (i) Two shall be appointed by the majority leader of the
            Senate (in consultation with the minority leader of the Senate).

    [[Page 110 STAT. 2844]]

                (ii) One shall be appointed by the minority leader of the
            Senate (in consultation with the majority leader of the Senate).
                (iii) Two shall be appointed by the Speaker of the House of
            Representatives (in consultation with the minority leader of the
            House of Representatives).
                (iv) One shall be appointed by the minority leader of the
            House of Representatives (in consultation with the Speaker of
            the House of Representatives).
                (v) Two shall be appointed by the Secretary of Energy.

        (B) Members shall be appointed for the life of the Commission. Any
    vacancy in the Commission shall not affect its powers, but shall be
    filled in the same manner as the original appointment.
        (C) The chairman of the Commission shall be designated from among
    the members of the Commission appointed under subparagraph (A) by the
    majority leader of the Senate, in consultation with the Speaker of the
    House of Representatives, the minority leader of the Senate, and the
    minority leader of the House of Representatives.
        (D) <<NOTE: Deadline.>>  Members shall be appointed not later than
    60 days after the date of the enactment of this Act.

        (2) <<NOTE: Procedures.>>  The members of the Commission shall
    establish procedures for the activities of the Commission, including
    procedures for calling meetings, requirements for quorums, and the
    manner of taking votes.

        (c) Duties.--(1) The Commission shall develop a plan for recruiting
    and retaining within the Department of Energy nuclear weapons complex
    such scientific, engineering, and technical personnel as the Commission
    determines appropriate in order to permit the Department to maintain
    over the long term a safe and reliable nuclear weapons stockpile without
    engaging in underground testing.
        (2) In developing the plan, the Commission shall--
                (A) identify actions that the Secretary may undertake to
            attract qualified scientific, engineering, and technical
            personnel to the nuclear weapons complex of the Department; and
                (B) review and recommend improvements to the on-going
            efforts of the Department to attract such personnel to the
            nuclear weapons complex.

        (d) Report.--Not later than March 15, 1998, the Commission shall
    submit to the Secretary and to Congress a report containing the plan
    developed under subsection (c). The report may include recommendations
    for legislation and administrative action.
        (e) Commission Personnel Matters.--(1) Each member of the Commission
    who is not an officer or employee of the Federal Government shall be
    compensated at a rate equal to the daily equivalent of the annual rate
    of basic pay prescribed for level IV of the Executive Schedule under
    section 5315 of title 5, United States Code, for each day (including
    travel time) during which such member is engaged in the performance of
    the duties of the Commission. All members of the Commission who are
    officers or employees of the United States shall serve without
    compensation in addition to that received for their services as officers
    or employees of the United States.
        (2) The members of the Commission shall be allowed travel expenses,
    including per diem in lieu of subsistence, at rates authorized for
    employees of agencies under subchapter I of chapter 57 of title 5,
    United States Code, while away from their homes or

    [[Page 110 STAT. 2845]]

    regular places of business in the performance of services for the
    Commission.
        (3) The Commission may, without regard to the civil service laws and
    regulations, appoint and terminate such personnel as may be necessary to
    enable the Commission to perform its duties. The Commission may fix the
    compensation of the personnel of the Commission without regard to the
    provisions of chapter 51 and subchapter III of chapter 53 of title 5,
    United States Code, relating to classification of positions and General
    Schedule pay rates.
        (4) Any Federal Government employee may be detailed to the
    Commission without reimbursement, and such detail shall be without
    interruption or loss of civil service status or privilege.
        (f) Termination.--The Commission shall terminate 30 days after the
    date on which the Commission submits its report under subsection (d).
        (g) Applicability of FACA.--The provisions of the Federal Advisory
    Committee Act (5 U.S.C. App.) shall not apply to the activities of the
    Commission.
        (h) Funding.--Of the amounts authorized to be appropriated pursuant
    to section 3101, not more than $1,000,000 shall be available for the
    activities of the Commission under this section. Funds made available to
    the Commission under this section shall remain available until expended.
    SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND SAFETY OF
                              REMAINING NUCLEAR FORCES.

        (a) Findings.--Congress makes the following findings:
                (1) The United States is committed to proceeding with a
            robust, science-based stockpile stewardship program with respect
            to production of nuclear weapons, and to maintaining nuclear
            weapons production capabilities and capacities, that are
            adequate--
                        (A) to ensure the safety, reliability, and
                    performance of the United States nuclear arsenal; and
                        (B) to meet such changing national security
                    requirements as may result from international
                    developments or technical problems with nuclear
                    warheads.
                (2) The United States is committed to reestablishing and
            maintaining production facilities for nuclear weapons components
            at levels that are sufficient--
                        (A) to satisfy requirements for the safety,
                    reliability, and performance of United States nuclear
                    weapons; and
                        (B) to demonstrate and sustain production
                    capabilities and capacities.
                (3) The United States is committed to maintaining the
            nuclear weapons laboratories and protecting core nuclear
            weapons competencies.
                (4) The United States is committed to ensuring rapid access
            to a new production source of tritium within the next decade, as
            it currently has no meaningful capability to produce tritium, a
            component that is essential to the performance of modern nuclear
            weapons.
                (5) The United States reserves the right, consistent with
            United States law, to resume underground nuclear testing to
            maintain confidence in the United States stockpile of nuclear
            weapons if warhead design flaws or aging of nuclear weapons

    [[Page 110 STAT. 2846]]

            result in problems that a robust stockpile stewardship program
            cannot solve.
                (6) The United States is committed to funding the Nevada
            Test Site at a level that maintains the ability of the United
            States to resume underground nuclear testing within one year
            after a national decision to do so is made.
                (7) The United States reserves the right to invoke the
            supreme national interest of the United States and withdraw from
            any future arms control agreement to limit underground nuclear
            testing.

        (b) Sense of Congress Regarding Presidential Con-
    sultation With Congress.--It is the sense of Congress that the President
    should consult closely with Congress regarding United States policy and
    practices to ensure confidence in the safety, reliability, and
    performance of the nuclear stockpile of the United States.
        (c) <<NOTE: President.>>  Sense of Congress Regarding Notification
    and Consultation.--It is the sense of Congress that, upon a
    determination by the President that a problem with the safety,
    reliability, or performance of the nuclear stockpile has occurred and
    that the problem cannot be corrected within the stockpile stewardship
    program, the President shall--
                (1) immediately notify Congress of the problem; and
                (2) submit to Congress in a timely manner a plan for
            corrective action with respect to the problem, including--
                        (A) a technical description of the activities
                    required under the plan; and
                        (B) if underground testing of nuclear weapons would
                    assist in such corrective action, an assessment of the
                    advisability of withdrawing from any treaty that
                    prohibits underground testing of nuclear weapons.

    SEC. 3164. <<NOTE: Ohio.>>  STUDY ON WORKER PROTECTION AT THE MOUND
                FACILITY.

        (a) Report.--Not later than March 15, 1997, the Secretary of Energy
    shall submit to the congressional defense committees a report regarding
    the status of projects and programs to improve worker safety and health
    at the Mound Facility in Miamisburg, Ohio.
        (b) Matters Covered.--The report shall include the following:
                (1) The status of actions completed in fiscal year 1996.
                (2) The status of actions completed or proposed to be
            completed in fiscal years 1997 and 1998.
                (3) A description of the fiscal year 1998 budget request for
            worker safety and health at the Mound Facility.
                (4) An accounting of expenditures for worker safety and
            health at the Mound Facility by fiscal year from fiscal year
            1994 through and including fiscal year 1996.
    SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD
                              IMPROVEMENT PROJECT, LIVERMORE,
                              CALIFORNIA.

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

    [[Page 110 STAT. 2847]]

    mine the cost of the transportation improvements referred to in
    subsection (a).
    SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL
                              TO DEPARTMENT OF ENERGY NUCLEAR
                              WEAPONS COMPLEX.

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

        Subtitle E--Defense Nuclear Environmental Cleanup and Management

    SEC. 3171. <<NOTE: 42 USC 7274k note.>>  PURPOSE.

        The purpose of this subtitle is to provide for the expedited
    environmental restoration and waste management of defense nuclear
    facilities through the use of cost-effective management mechanisms and
    innovative technologies.
    SEC. 3172. <<NOTE: 42 USC 7274k note.>>  APPLICABILITY.

        (a) In General.--The provisions of this subtitle shall apply to the
    following defense nuclear facilities:
                (1) Any defense nuclear facility for which the fiscal year
            1996 environmental management budget was $350,000,000 or more.
                (2) Any other defense nuclear facility if--
                        (A) the chief executive officer of the State in
                    which the facility is located submits to the Secretary a
                    request that the facility be covered by the provisions
                    of this sub-
                    title; and
                        (B) the Secretary approves the request.

        (b) <<NOTE: Notification.>>  Limitation.--The Secretary may not
    approve a request under subsection (a)(2) until 60 days after the date
    on which the Secretary notifies Congress of the Secretary's receipt of
    the request.
    SEC. 3173. <<NOTE: 42 USC 7274k note.>>  SITE MANAGER.

        (a) Appointment.--(1) Subject to paragraph (2), the Secretary shall
    expeditiously appoint a Site Manager for each defense nuclear facility
    (in this subtitle referred to as the ``Site Manager'').

    [[Page 110 STAT. 2848]]

        (2) In the case of a defense nuclear facility at which another
    program, in addition to environmental management operations, is carried
    out, and such other program is subject to management by a site manager,
    field office manager, or operations office manager, the Secretary shall
    appoint such manager to be the Site Manager for such facility for
    purposes of this subtitle.
        (b) Authority.--(1) In addition to other authorities provided for in
    this Act, the Secretary may delegate to the Site Manager of a defense
    nuclear facility authority to oversee and direct
    environmental management operations at the facility, including the
    authority to--
                (A) enter into and modify contractual agreements to enhance
            environmental restoration and waste management at the facility;
                (B) request that the Department headquarters submit to
            Congress a reprogramming package shifting funds among accounts
            in order to facilitate the most efficient and timely
            environmental restoration and waste management of the facility,
            and, in the event that the Department headquarters does not act
            upon the request within 60 days, submit such request to the
            appropriate congressional committees for review;
                (C) subject to paragraph (2), negotiate amendments to
            environmental agreements for the Department;
                (D) manage Department personnel at the facility;
                (E) consider the costs, risk reduction benefits, and other
            benefits for the purposes of ensuring protection of human health
            and the environment or safety, with respect to any environmental
            remediation activity the cost of which exceeds $25,000,000; and
                (F) have assessments prepared for environmental restoration
            activities (in several documents or a single document, as
            determined by the Site Manager).

        (2) In using the authority described in paragraph (1)(C), a Site
    Manager may not negotiate an amendment that is expected to result in
    additional life cycle costs to the Department without the approval of
    the Secretary.
        (3) In using any authority described in paragraph (1), a Site
    Manager of a facility shall consult with the State where the facility is
    located and the advisory board for the facility.
        (4) The delegation of any authority pursuant to this subsection
    shall not be construed as restricting the Secretary's authority to
    delegate other authorities as necessary.
        (c) Information to Secretary.--The Site Manager of a defense nuclear
    facility shall regularly inform the Secretary,
    Congress, and the advisory board for the facility of the progress made
    by the Site Manager to achieve the expedited environmental restoration
    and waste management of the facility.
    SEC. 3174. <<NOTE: 42 USC 7274k note.>>  DEPARTMENT OF ENERGY
                              ORDERS.

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

    [[Page 110 STAT. 2849]]

    the fulfillment of current legal requirements, or the conduct of
    critical administrative functions.
    SEC. 3175. <<NOTE: 42 USC 7274k note.>>  DEPLOYMENT OF TECHNOLOGY
                              FOR REMEDIATION OF DEFENSE NUCLEAR
                              WASTE.

        (a) In General.--The Site Manager of each defense nuclear facility
    shall promote the deployment of innovative environmental technologies
    for remediation of defense nuclear waste at the facility.
        (b) Criteria.--To carry out subsection (a), the Site Manager of a
    defense nuclear facility shall establish a program at the facility for
    the testing and deployment of innovative environmental
    technologies for the remediation of defense nuclear waste at the
    facility. In establishing such a program, the Site Manager may--
                (1) establish a simplified, standardized, and timely process
            for the testing, verification, certification, and deployment of
            environmental technologies;
                (2) solicit applications to test and deploy environmental
            technologies suitable for environmental restoration and waste
            management activities at the facility, including prevention,
            control, characterization, treatment, and remediation of
            contamination;
                (3) consult and cooperate with the heads of existing
            programs at the facility for the verification and certification
            of environmental technologies at the facility;
                (4) pay the costs of the demonstration of such technologies;
                (5) enter into contracts and other agreements with other
            public and private entities to deploy environmental technologies
            at the facility; and
                (6) include incentives, such as product performance
            specifications, in contracts to encourage the implementation of
            innovative environmental technologies.

        (c) Follow-On Contracts.--(1) If the Secretary and a person
    demonstrating a technology under the program enter into a contract for
    remediation of nuclear waste at a defense nuclear facility covered by
    this subtitle, or at any other Department facility, as a follow-on to
    the demonstration of the technology, the Secretary shall ensure that the
    contract provides for the Secretary to recoup from the contractor the
    costs incurred by the Secretary pursuant to subsection (b)(6) for the
    demonstration.
        (2) No contract between the Department and a contractor for the
    demonstration of technology under subsection (b) may provide for
    reimbursement of the costs of the contractor on a cost plus fee basis.
        (d) Safe Harbors.--In the case of an environmental technology
    tested, verified, certified, and deployed at a defense nuclear facility
    under a program established under subsection (b), the Site Manager of
    another defense nuclear facility may request the Secretary to waive or
    limit contractual or Department regulatory requirements that would
    otherwise apply in implementing the same environmental technology at
    such other facility.

    SEC. 3176. <<NOTE: 42 USC 7274k note.>>  PERFORMANCE-BASED CONTRACTING.

        (a) Program.--The Secretary shall develop and implement a program
    for performance-based contracting for contracts entered into for
    environmental remediation at defense nuclear facilities. The program
    shall ensure that, to the maximum extent practicable and appropriate,
    such contracts include the following:

    [[Page 110 STAT. 2850]]

                (1) Clearly stated and results oriented performance criteria
            and measures.
                (2) Appropriate incentives for contractors to meet or exceed
            the performance criteria effectively and efficiently.
                (3) Appropriate criteria and incentives for contractors to
            seek and engage subcontractors who may more effectively and
            efficiently perform either unique and technologically
            challenging tasks or routine and interchangeable services.
                (4) Specific incentives for cost savings.
                (5) Financial accountability.
                (6) When appropriate, reduction of fee for failure to meet
            minimum performance criteria and standards.

        (b) Criteria and Measures.--Performance criteria and
    measures should take into consideration, at a minimum, the following:
    managerial control; elimination or reduction of risk to public health
    and the environment; workplace safety; financial control; goal-oriented
    work scope; use of innovative and alternative technologies and
    techniques that result in cleanups being performed less expensively,
    more quickly, and within quality parameters; and performing within
    benchmark cost estimates.
        (c) Consultation.--In implementing this section, the Secretary shall
    consult with interested parties.
        (d) <<NOTE: Reports.>>  Deadline.--The Secretary shall implement
    this section not later than October 1, 1997, unless the Secretary
    submits to Congress before that date a report with a schedule for
    completion of action under this section.
    SEC. 3177. <<NOTE: 42 USC 7274k note.>>  DESIGNATION OF COVERED
                              FACILITIES AS ENVIRONMENTAL CLEANUP
                              DEMONSTRATION AREAS.

        (a) Designation.--Each defense nuclear facility is hereby designated
    as an environmental cleanup demonstration area to carry out the purposes
    of this subtitle, including the utilization
    and evaluation of new technologies to be used in environmental
    restoration and remediation at other defense nuclear facilities.

        (b) Sense of Congress.--It is the sense of Congress that Federal and
    State regulatory agencies, members of the communities surrounding any
    defense nuclear facility, and other affected parties with respect to the
    facility should continue to--
                (1) develop expedited and streamlined processes and systems
            for cleaning up such facility;
                (2) eliminate unnecessary administrative complexity and
            unnecessary duplication of regulation with respect to the
            cleanup of such facility;
                (3) proceed expeditiously and cost-effectively with
            environmental restoration and remediation activities at such
            facility;
                (4) consider future land use in selecting environmental
            cleanup remedies at such facility; and
                (5) identify and recommend to Congress changes in law needed
            to expedite the cleanup of such facility.

    SEC. 3178. <<NOTE: 42 USC 7274k note.>>  DEFINITIONS.

        In this subtitle:
                (1) The term ``Secretary'' means the Secretary of Energy.
                (2) The term ``Department'' means the Department of Energy.
                (3) The term ``defense nuclear facility'' has the meaning
            given the term ``Department of Energy defense nuclear facility''

    [[Page 110 STAT. 2851]]

            in section 318 of the Atomic Energy Act of 1954 (42 U.S.C.
            2286g).

    SEC. 3179. <<NOTE: 42 USC 7274k note.>>  TERMINATION.

        This subtitle is repealed effective September 30, 2001.

    SEC. 3180. <<NOTE: 42 USC 7274k note.>>  REPORT.

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

    Subtitle F <<NOTE: Waste Isolation Pilot Plant Land Withdrawal Amendment
    Act.>> --Waste Isolation Pilot Plant Land Withdrawal Act Amendments

    SEC. 3181. SHORT TITLE.

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

    SEC. 3182. DEFINITIONS.

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

    SEC. 3183. MANAGEMENT PLAN.

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

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

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

    SEC. 3185. TEST PHASE ACTIVITIES.

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

    [[Page 110 STAT. 2852]]

                (4) in subsection (d), by striking ``, during the test
            phase, a biennial'' and inserting ``a'' and by striking ``,
            consisting of a documented analysis of'' and inserting ``as
            necessary to demonstrate''; and
                (5) by redesignating subsection (d) as subsection (b).

    SEC. 3186. DISPOSAL OPERATIONS.

        Subsection (b) of section 7 of the Waste Isolation Pilot Plant Land
    Withdrawal Act (106 Stat. 4785) is amended to read as follows:
        ``(b) Requirements for Commencement of Disposal
    Operations.--The Secretary may commence emplacement of transuranic waste
    underground for disposal at WIPP only upon com-
    pletion of--
                ``(1) the Administrator's certification under section
            8(d)(1) that the WIPP facility will comply with the final
            disposal
            regulations;
                ``(2) the acquisition by the Secretary (whether by purchase,
            condemnation, or otherwise) of Federal Oil and Gas Leases No.
            NMNM 02953 and No. NMNM 02953C, unless the Administrator
            determines under section 4(b)(5) that such acquisition is not
            required; and
                ``(3) <<NOTE: Notification.>>  the 30-day period beginning
            on the date on which the Secretary notifies Congress that the
            requirements of section 9(a)(1) have been met.''.
    SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL
                              REGULATIONS.

        (a) Section 8(d)(1).--Section 8(d)(1) of the Waste Isolation Pilot
    Plant Land Withdrawal Act (106 Stat. 4786) is amended--
                (1) by amending subparagraph (A) to read as follows:
                        ``(A) Application for compliance.--Within 30 days
                    after the date of the enactment of the Waste Isolation
                    Pilot Plant Land Withdrawal Amendment Act, the Secretary
                    shall provide to Congress a schedule for the incremental
                    submission of chapters of the application to the
                    Administrator beginning no later than 30 days after the
                    date of the submittal of the schedule. The Administrator
                    shall review the submitted chapters and provide requests
                    for additional information from the Secretary as needed
                    for completeness within 45 days of the receipt of each
                    chapter. <<NOTE: Notification.>>  The Administrator
                    shall notify Congress of such requests. The schedule
                    shall call for the Secretary to submit all chapters to
                    the Administrator no later than October 31, 1996. The
                    Administrator may at any time request additional
                    information from the Secretary as needed to certify,
                    pursuant to subparagraph (B), whether the WIPP facility
                    will comply with the final disposal regulations.''; and
                (2) in subparagraph (D), by striking ``after the application
            is'' and inserting ``after the full application has been''.

        (b) Section 8(d) (2) and (3).--Section 8(d) of such Act is amended
    by striking paragraphs (2) and (3), by striking ``(1) Compliance with
    disposal regulations.--'' and by redesignating subparagraphs (A), (B),
    (C), and (D) of paragraph (1) as paragraphs (1), (2), (3), and (4),
    respectively.
        (c) Section 8(g).--Section 8(g) of such Act is amended to read as
    follows:

    [[Page 110 STAT. 2853]]

        ``(g) Engineered and Natural Barriers, Etc.--The Secretary shall use
    both engineered and natural barriers and any other measures (including
    waste form modifications) to the extent necessary at WIPP to comply with
    the final disposal regulations.''.
    SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND
                              REGULATIONS.

        (a) Section 9(a)(1).--Section 9(a)(1) of the Waste Isolation Pilot
    Plant Land Withdrawal Act (106 Stat. 4788) is amended by adding after
    and below subparagraph (H) the following: ``With respect to transuranic
    mixed waste designated by the Secretary for disposal at WIPP, such waste
    is exempt from treatment standards promulgated pursuant to section
    3004(m) of the Solid Waste Disposal Act (42 U.S.C. 6924(m)) and shall
    not be subject to the land disposal prohibitions in section 3004(d),
    (e), (f), and (g) of the Solid Waste Disposal Act.''.
        (b) Section 9(b).--Subsection (b) of section 9 of such Act is
    repealed.
        (c) Section 9(c)(2).--Subsection (c)(2) of section 9 of such Act is
    repealed.
        (d) Section 14.--Section 14 of such Act (106 Stat. 4791) is
    amended--
                (1) in subsection (a), by striking ``No provision'' and
            inserting ``Except for the exemption from the land disposal
            restrictions described in section 9(a)(1), no provision''; and
                (2) in subsection (b)(2), by striking ``including all terms
            and conditions of the No-Migration Determination'' and inserting
            ``except that the transuranic mixed waste designated by the
            Secretary for disposal at WIPP is exempt from the land disposal
            restrictions described in section 9(a)(1)''.
    SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF
                              TRANSURANIC WASTE.

        (a) In General.--Section 10 of the Waste Isolation Pilot Plant Land
    Withdrawal Act (106 Stat. 4789) is amended to read as follows:
    ``SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF
                            TRANSURANIC WASTE.

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

    SEC. 3190. DECOMMISSIONING OF WIPP.

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

    [[Page 110 STAT. 2854]]

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

        (a) Authorization Amendment.--Section 15(a) of the Waste Isolation
    Pilot Plant Land Withdrawal Act (106 Stat. 4791) is amended--
                (1) in the subsection caption, by striking ``15-Year'' and
            inserting ``14-Year''; and
                (2) by striking ``15 fiscal years beginning with the fiscal
            year in which the transport of transuranic waste to WIPP is
            initiated'' and inserting ``14 fiscal years beginning with
            fiscal year 1998''.

        (b) Requirement for Separate Authorizations.--Such section 15(a) is
    further amended by adding at the end the following: ``The authorization
    of appropriations for funds for payments to the State under the
    preceding sentence shall be separate from any authorization of
    appropriations of funds for WIPP.''.
        (c) Fiscal Year 1997 Funding.--Of the amount authorized to be
    appropriated for the Department of Energy by section 3102(b),
    $20,000,000 shall be available for the purpose of a payment by the
    Secretary of Energy to the State of New Mexico for road improvements in
    connection with the Waste Isolation Pilot Plant.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

    SEC. 3201. AUTHORIZATION.

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

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

             Subtitle A--Authorization of Disposals and Use of Funds

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

                         Subtitle B--Programmatic Change

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

             Subtitle A--Authorization of Disposals and Use of Funds

    SEC. 3301. <<NOTE: 50 USC 98d note.>>  DEFINITIONS.

        In this title:
                (1) The term ``National Defense Stockpile'' means the
            stockpile provided for in section 4 of the Strategic and
            Critical Materials Stock Piling Act (50 U.S.C. 98c).

    [[Page 110 STAT. 2855]]

                (2) The term ``National Defense Stockpile Transaction Fund''
            means the fund in the Treasury of the United States established
            under section 9(a) of the Strategic and Critical Materials Stock
            Piling Act (50 U.S.C. 98h(a)).

    SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

        (a) Obligation of Stockpile Funds.--During fiscal year 1997, the
    National Defense Stockpile Manager may obligate up to $60,000,000 of the
    funds in the National Defense Stockpile Transaction Fund for the
    authorized uses of such funds under section 9(b)(2) of the Strategic and
    Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection (a)
    if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date Congress receives the
    notification.
        (c) Limitations.--The authorities provided by this section shall be
    subject to such limitations as may be provided in appropriations Acts.
    SEC. 3303. <<NOTE: 50 USC 98d note.>>  DISPOSAL OF CERTAIN
                              MATERIALS IN NATIONAL DEFENSE STOCKPILE.

        (a) <<NOTE: President.>>  Disposal Required.--Subject to subsection
    (c), the President shall dispose of materials contained in the National
    Defense Stockpile and specified in the table in subsection (b) so as to
    result in receipts to the United States in amounts equal to--
                (1) $81,000,000 during fiscal year 1997; and
                (2) $612,000,000 during the ten-fiscal year period ending
            September 30, 2006.

        (b) Limitation on Disposal Quantity.--The total quantities of
    materials authorized for disposal by the President under subsection (a)
    may not exceed the amounts set forth in the following table:

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

    [[Page 110 STAT. 2856]]

    Tantalum, Oxide...........................  40,000 pounds contained
    ------------------------------------------------------------------------

        (c) Minimization of Disruption and Loss.--The President may not
    dispose of materials under subsection (a) to the extent that the
    disposal will result in--
                (1) undue disruption of the usual markets of producers,
            processors, and consumers of the materials proposed for
            disposal; or
                (2) avoidable loss to the United States.

        (d) Treatment of Receipts.--Notwithstanding section 9 of the
    Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds
    received as a result of the disposal of materials under subsection (a)
    shall be--
                (1) deposited into the general fund of the Treasury; and
                (2) to the extent necessary, used to offset the revenues
            that will be lost as a result of execution of the amendments
            made by section 4303(a) of the National Defense Authorization
            Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 658).

        (e) Qualifying Offsetting Legislation.--This section is specifically
    enacted as qualifying offsetting legislation for the purpose of
    offsetting fully the estimated revenues lost as a result of the
    amendments made by subsection (a) of section 4303 of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 658), and as such is deemed to satisfy the conditions in
    subsection (b) of such section.
        (f) Relationship to Other Disposal Authority.--The disposal
    authority provided in subsection (a) is new disposal authority and is in
    addition to, and shall not affect, any other disposal authority provided
    by law regarding the materials specified in such subsection.

                         Subtitle B--Programmatic Change

    SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

        (a) National Emergency Planning Assumptions.--Section 14 of the
    Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-5) is
    amended--
                (1) by redesignating subsection (c) as subsection (e); and
                (2) by striking out subsection (b) and inserting in lieu
            thereof the following new subsection:

        ``(b) Each report under this section shall set forth the national
    emergency planning assumptions used by the Secretary in making the
    Secretary's recommendations under subsection (a)(1) with respect to
    stockpile requirements. The Secretary shall base the national emergency
    planning assumptions on a military conflict scenario consistent with the
    scenario used by the Secretary in budgeting and defense planning
    purposes. The assumptions to be set forth include assumptions relating
    to each of the following:
                ``(1) The length and intensity of the assumed military
            conflict.
                ``(2) The military force structure to be mobilized.
                ``(3) The losses anticipated from enemy action.

    [[Page 110 STAT. 2857]]

                ``(4) The military, industrial, and essential civilian
            requirements to support the national emergency.
                ``(5) The availability of supplies of strategic and critical
            materials from foreign sources during the mobilization period,
            the military conflict, and the subsequent period of
            replenishment, taking into consideration possible shipping
            losses.
                ``(6) The domestic production of strategic and critical
            materials during the mobilization period, the military conflict,
            and the subsequent period of replenishment, taking into
            consideration possible shipping losses.
                ``(7) Civilian austerity measures required during the
            mobilization period and military conflict.

        ``(c) The stockpile requirements shall be based on those strategic
    and critical materials necessary for the United States to replenish or
    replace, within three years of the end of the military conflict scenario
    required under subsection (b), all munitions, combat support items, and
    weapons systems that would be required after such a military conflict.
        ``(d) The Secretary shall also include in each report under this
    section an examination of the effect that alternative mobilization
    periods under the military conflict scenario required under subsection
    (b), as well as a range of other military conflict scenarios addressing
    potentially more serious threats to national security, would have on the
    Secretary's recommendations under subsection (a)(1) with respect to
    stockpile requirements.''.
        (b) Conforming Amendment.--Section 2 of such Act (50 U.S.C. 98a) is
    amended by striking out subsection (c) and inserting in lieu thereof the
    following new subsection:
        ``(c) The purpose of the National Defense Stockpile is to serve the
    interest of national defense only. The National Defense Stockpile is not
    to be used for economic or budgetary purposes.''.
        (c) <<NOTE: 50 USC 98a note.>>  Effective Date.--The amendments made
    by this section shall take effect on October 1, 1996.

    SEC. 3312. NOTIFICATION REQUIREMENTS.

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

        (b) Waiver of Acquisition and Disposal Requirements.--Section
    6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended by striking out
    ``thirty days'' and inserting in lieu thereof ``45 days''.
        (c) Time To Begin Disposal.--Section 6(d)(2) of such Act (50 U.S.C.
    98e(d)(2)) is amended by striking out ``thirty days'' and inserting in
    lieu thereof ``45 days''.

    SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

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

    [[Page 110 STAT. 2858]]

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        There is hereby authorized to be appropriated to the Secretary of
    Energy $149,500,000 for fiscal year 1997 for the purpose of carrying out
    activities under chapter 641 of title 10, United States Code, relating
    to the naval petroleum reserves (as defined in section 7420(2) of such
    title). Funds appropriated pursuant to such authorization shall remain
    available until expended.
    SEC. 3402. <<NOTE: 10 USC 7430 note.>>  PRICE REQUIREMENT ON SALE
                              OF CERTAIN PETROLEUM DURING FISCAL YEAR
                              1997.

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

                       TITLE XXXV--PANAMA CANAL COMMISSION

                   Subtitle A--Authorization of Appropriations

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

               Subtitle B--Amendments to Panama Canal Act of 1979

    Sec. 3521. Short title; references.
    Sec. 3522. Definitions and recommendation for legislation.
    Sec. 3523. Administrator.
    Sec. 3524. Deputy Administrator and Chief Engineer.
    Sec. 3525. Office of Ombudsman.
    Sec. 3526. Appointment and compensation; duties.
    Sec. 3527. Applicability of certain benefits.
    Sec. 3528. Travel and transportation.
    Sec. 3529. Clarification of definition of agency.
    Sec. 3530. Panama Canal Employment System; merit and other employment
               requirements.
    Sec. 3531. Employment standards.
    Sec. 3532. Repeal of obsolete provision regarding interim application of
               Canal Zone Merit System.
    Sec. 3533. Repeal of provision relating to recruitment and retention
               remuneration.
    Sec. 3534. Benefits based on basic pay.
    Sec. 3535. Vesting of general administrative authority of commission.
    Sec. 3536. Applicability of certain laws.
    Sec. 3537. Repeal of provision relating to transferred or reemployed
               employees.
    Sec. 3538. Administration of special disability benefits.
    Sec. 3539. Panama Canal Revolving Fund.
    Sec. 3540. Printing.
    Sec. 3541. Accounting policies.
    Sec. 3542. Interagency services; reimbursements.
    Sec. 3543. Postal service.
    Sec. 3544. Investigation of accidents or injury giving rise to claim.
    Sec. 3545. Operations regulations.
    Sec. 3546. Miscellaneous repeals.
    Sec. 3547. Exemption from Metric Conversion Act of 1975.

    [[Page 110 STAT. 2859]]

    Sec. 3548. Conforming and clerical amendments.
    Sec. 3549. Repeal of Panama Canal Code.

    Subtitle A <<NOTE: Panama Canal Commission Authorization Act for Fiscal
    Year 1997.>> --Authorization of Appropriations

    SEC. 3501. SHORT TITLE.

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

    SEC. 3502. AUTHORIZATION OF EXPENDITURES.

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

    SEC. 3503. PURCHASE OF VEHICLES.

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

    SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

    [[Page 110 STAT. 2860]]

     Subtitle B <<NOTE: Panama Canal Act Amendments of 1996.>> --Amendments
    to Panama Canal Act of 1979

    SEC. 3521. SHORT TITLE; REFERENCES.

        (a) <<NOTE: 22 USC 3601 note.>>  Short Title.--This subtitle may be
    cited as the ``Panama Canal Act Amendments of 1996''.

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

    SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

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

    SEC. 3523. ADMINISTRATOR.

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

                                 ``administrator

        ``Sec. <<NOTE: President.>>  1103. (a) There shall be an
    Administrator of the Commission who shall be appointed by the President,
    by and with the advice and consent of the Senate, and shall hold office
    at the pleasure of the President.

        ``(b) The Administrator shall be paid compensation in an amount,
    established by the Board, not to exceed level III of the Executive
    Schedule.''.
        (b) <<NOTE: 22 USC 3613 note.>>  Savings Provisions.--Nothing in
    this section (or section 3549(3)) shall be considered to affect--
                (1) the tenure of the individual serving as Administrator of
            the Commission on the day before subsection (a) takes
            effect; or
                (2) until modified under section 1103(b) of the Panama Canal
            Act of 1979, as amended by subsection (a), the compensation of
            the individual so serving.

    SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

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

                             ``deputy administrator

        ``Sec. 1104. <<NOTE: President.>>  (a) There shall be a Deputy
    Administrator of the Commission who shall be appointed by the President.
    The Deputy Administrator shall perform such duties as may be prescribed
    by the Board.

        ``(b) The Deputy Administrator shall be paid compensation at a rate
    of pay, established by the Board, which does not exceed the rate of
    basic pay in effect for level IV of the Executive Schedule,

    [[Page 110 STAT. 2861]]

    and, if eligible, shall be paid the overseas recruitment and retention
    differential provided for in section 1217 of this Act.''.
        (b) <<NOTE: 22 USC 3614 note.>>  Savings Provisions.--Nothing in
    this section shall be considered to affect--
                (1) the tenure of the individual serving as Deputy
            Administrator of the Commission on the day before subsection (a)
            takes effect; or
                (2) until modified under section 1104(b) of the Panama Canal
            Act of 1979, as amended by subsection (a), the compensation of
            the individual so serving.

    SEC. 3525. OFFICE OF OMBUDSMAN.

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

    SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

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

                     ``appointment and compensation; duties

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

    SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

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

                       ``applicability of certain benefits

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

    SEC. 3528. TRAVEL AND TRANSPORTATION.

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

                           ``travel and transportation

        ``Sec. 1210. (a) Subject to subsections (b) and (c), the Commission
    may pay travel and transportation expenses for employees in accordance
    with subchapter II of chapter 57 of title 5, United States Code.

    [[Page 110 STAT. 2862]]

        ``(b) For an employee to whom section 1206 applies, the Commission
    may pay travel and transportation expenses associated with vacation
    leave for the employee and the immediate family of the employee
    notwithstanding requirements regarding periods of service established by
    subchapter II of chapter 57 of
    title 5, United States Code, or the regulations promulgated thereunder.

        ``(c) For an employee to whom section 1206 does not apply, the
    Commission may pay travel and transportation expenses associated with
    vacation leave for the employee and the immediate family of the employee
    notwithstanding requirements regarding a written agreement concerning
    the duration of a continuing service obligation established by
    subchapter II of chapter 57 of title 5, United States Code, or the
    regulations promulgated thereunder.

        ``(d)(1) Notwithstanding any other provision of law (except
    paragraph (2)), the Commission may contract with Panamanian carriers
    registered under the laws of the Republic of Panama to provide air
    transportation to officials and employees of the Commission who are
    citizens of the Republic of Panama.
        ``(2) Notwithstanding paragraph (1), an official or employee of the
    Commission referred to in paragraph (1) may elect, for security or other
    reasons, to travel by an air carrier holding a certificate under section
    41102 of title 49, United States Code.''.

    SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

        Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) is
    amended to read as follows:
                        ``(B) any other Executive agency or the Smithsonian
                    Institution, to the extent of any election in effect
                    under section 1212(b) of this Act;''.
    SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER
                              EMPLOYMENT REQUIREMENTS.

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

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

        ``Sec. 1212. <<NOTE: Establishment. Regulations.>>  (a) The
    Commission shall establish a Panama Canal Employment System and
    prescribe the regulations necessary for its administration. The Panama
    Canal Employment System shall--
                ``(1) be established in accordance with and be subject to
            the provisions of the Panama Canal Treaty of 1977 and related
            agreements, the provisions of this chapter, and any other
            applicable provision of law;
                ``(2) be based on the consideration of the merit of each
            employee or candidate for employment and the qualifications and
            fitness of the employee to hold the position concerned;
                ``(3) conform, to the extent practicable and consistent with
            the provisions of this Act, to the policies, principles, and
            standards applicable to the competitive service;
                ``(4) in the case of employees who are citizens of the
            United States, provide for the appropriate interchange of those
            employees between positions under the Panama Canal Employment
            System and positions in the competitive service; and
                ``(5) not be subject to the provisions of title 5, United
            States Code, unless specifically made applicable by this Act.

    [[Page 110 STAT. 2863]]

        ``(b)(1) The head of any Executive agency (other than the
    Commission) and the Smithsonian Institution may elect to have the Panama
    Canal Employment System made applicable in whole or in part to personnel
    of that agency in the Republic of Panama.
        ``(2) Any Executive agency (other than the Commission) and the
    Smithsonian Institution, to the extent of any election under paragraph
    (1), shall conduct its employment and pay practices relating to
    employees in accordance with the Panama Canal Employment System.

        ``(3) <<NOTE: Applicability.>>  Notwithstanding any other provision
    of this Act or the Panama Canal Act Amendments of 1996, this subchapter,
    as last in effect before the effective date of section 3530 of the
    Panama Canal Act Amendments of 1996, shall continue to apply to an
    Executive agency or the Smithsonian Institution to the extent of an
    election under paragraph (1) by the head of agency or the Institution,
    respectively.

        ``(c) The Commission may exclude any employee or position from
    coverage under any provision of this subchapter, other than the
    interchange rights extended under subsection (a)(4).''.
        (b) <<NOTE: Applicability. 22 USC 3652 note.>>  Savings
    Provisions.--The Panama Canal Employment System and all elections,
    rules, regulations, and orders relating thereto, as last in effect
    before the amendment made by subsection (a) takes effect, shall continue
    in effect, according to their terms, until modified, terminated, or
    superseded under section 1212 of the
    Panama Canal Act of 1979, as amended by subsection (a).
    SEC. 3531. EMPLOYMENT STANDARDS.

        Section 1213 (22 U.S.C. 3653) is amended in the first sentence by
    striking ``The head of each agency'' and inserting ``The
    Commission''.
    SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM
                              APPLICATION OF CANAL ZONE MERIT SYSTEM.

        Section 1214 (22 U.S.C. 3654) is repealed.
    SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND
                              RETENTION REMUNERATION.

        Section 1217(d) (22 U.S.C. 3657(d)) is repealed.
    SEC. 3534. BENEFITS BASED ON BASIC PAY.

        Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as follows:
                ``(2) benefits under subchapter III of chapter 83 or chapter
            84 of title 5, United States Code, relating to retirement;''.
    SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF
                              COMMISSION.

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

                           ``central examining office

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

    [[Page 110 STAT. 2864]]

    SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

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

                 ``applicability of title 5, united states code

        ``Sec. 1224. The following provisions of title 5, United States
    Code, apply to the Panama Canal Commission:
                ``(1) Part I of title 5 (relating to agencies generally).
                ``(2) Chapter 21 (relating to employee definitions).
                ``(3) Section 2302(b)(8) (relating to whistleblower
            protection) and all provisions of title 5 relating to the
            administration or enforcement or any other aspect thereof, as
            identified in regulations prescribed by the Commission in
            consultation with the Office of Personnel Management.
                ``(4) All provisions relating to preference eligibles.
                ``(5) Section 5514 (relating to offset from salary).
                ``(6) Section 5520a (relating to garnishments).
                ``(7) Sections 5531-5535 (relating to dual pay and
            employment).
                ``(8) Subchapter VI of chapter 55 (relating to accumulated
            and accrued leave).
                ``(9) Subchapter IX of chapter 55 (relating to severance and
            back pay).
                ``(10) Chapter 57 (relating to travel, transportation, and
            subsistence).
                ``(11) Chapter 59 (relating to allowances).
                ``(12) Chapter 63 (relating to leave for CONUS employees).
                ``(13) Section 6323 (relating to military leave; Reserves
            and National Guardsmen).
                ``(14) Chapter 71 (relating to labor relations).
                ``(15) Subchapters II and III of chapter 73 (relating to
            employment limitations and political activities, respectively)
            and all provisions of title 5 relating to the administration or
            enforcement or any other aspect thereof, as identified in
            regulations prescribed by the Commission in consultation with
            the Office of Personnel Management.
                ``(16) Chapter 81 (relating to compensation for work
            injuries).
                ``(17) Chapters 83 and 84 (relating to retirement).
                ``(18) Chapter 85 (relating to unemployment compensation).
                ``(19) Chapter 87 (relating to life insurance).
                ``(20) Chapter 89 (relating to health insurance).''.
    SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR
                              REEMPLOYED EMPLOYEES.

        Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.
    SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

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

                 ``administration of certain disability benefits

        ``Sec. 1245. (a)(1) The Commission, or any other United States
    Government agency or private entity acting pursuant to an agreement with
    the Commission, under the Act entitled `An Act authorizing cash relief
    for certain employees of the Panama Canal not coming within the
    provisions of the Canal Zone Retirement Act',

    [[Page 110 STAT. 2865]]

    approved July 8, 1937 (50 Stat. 478; 68 Stat. 17), may continue the
    payments of cash relief to those individual former employees of the
    Canal Zone Government or Panama Canal Company or their predecessor
    agencies not coming within the scope of the former Canal Zone Retirement
    Act whose services were terminated prior to October 5, 1958, because of
    unfitness for further useful service by reason of mental or physical
    disability resulting from age or disease.
        ``(2) Subject to subsection (b), cash relief under this subsection
    may not exceed $1.50 per month for each year of service of the employees
    so furnished relief, with a maximum of $45 per month, plus the amount of
    any cost-of-living increases in such cash relief granted before October
    1, 1979, pursuant to section 181 of title 2 of the Canal Zone Code (as
    in effect on September 30, 1979), nor be paid to any employee who, at
    the time of termination for disability prior to October 5, 1958, had
    less than 10 years' service with the Canal Zone Government, the Panama
    Canal Company, or their predecessor agencies on the Isthmus of
    Panama.''.
    SEC. 3539. PANAMA CANAL REVOLVING FUND.

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

                          ``panama canal revolving fund

        ``Sec. 1302. <<NOTE: Nomenclature.>>  (a) There is established in
    the Treasury of the United States a revolving fund to be known as
    `Panama Canal Revolving Fund'. The Panama Canal Revolving Fund shall,
    subject to subsection (b), be available to the Commission to carry out
    the purposes, functions, and powers authorized by this Act, including
    for--
                ``(1) the hire of passenger motor vehicles and aircraft;
                ``(2) uniforms or allowances therefor;
                ``(3) official receptions and representation expenses of the
            Board, the Secretary of the Commission, and the Administrator;
                ``(4) the operation of guide services;
                ``(5) a residence for the Administrator;
                ``(6) disbursements by the Administrator for employee and
            community projects;
                ``(7) the procurement of expert and consultant services;
                ``(8) promotional activities, including the preparation,
            distribution, or use of any kit, pamphlet, booklet, publication,
            radio, television, film, or other media presentation designed to
            promote the Panama Canal as a resource of the world shipping
            industry; and
                ``(9) the purchase and transportation to the Republic of
            Panama of passenger motor vehicles, including large, heavy-duty
            vehicles.

        ``(b)(1) There shall be deposited in the Panama Canal Revolving
    Fund, on a continuing basis, toll receipts (other than amounts of toll
    receipts deposited into the Panama Canal Commission Dissolution Fund
    under section 1305) and all other receipts of the Commission. Except as
    provided in section 1303, no funds may be obligated or expended by the
    Commission in
    any fiscal year unless such obligation or expenditure has been
    specifically authorized by law.

    [[Page 110 STAT. 2866]]

        ``(2) No funds may be authorized for the use of the Commission, or
    obligated or expended by the Commission in any fiscal year; in excess
    of--
                ``(A) the amount of revenues deposited in the Panama Canal
            Revolving Fund and the Panama Canal Commission Dissolution Fund
            during such fiscal year; plus
                ``(B) the amount of revenues deposited in the Panama Canal
            Revolving Fund before such fiscal year and remaining unobligated
            at the beginning of such fiscal year; plus
                ``(C) the $100,000,000 borrowing authority provided for in
            section 1304 of this Act.

    Not <<NOTE: Reports.>>  later than 30 days after the end of each fiscal
    year, the Secretary of the Treasury shall report to the Congress the
    amount of revenues deposited in the Panama Canal Revolving Fund during
    such fiscal year.

        ``(c) With the approval of the Secretary of the Treasury, the
    Commission may deposit amounts in the Panama Canal Revolving Fund in any
    Federal Reserve bank, any depositary for public funds, or such other
    place and in such manner as the Commission and the Secretary may agree.
        ``(d)(1) It is the sense of the Congress that the additional costs
    resulting from the implementation of the Panama Canal Treaty of 1977 and
    related agreements should be kept to the absolute minimum level. To this
    end, the Congress declares appropriated costs of implementation to be
    borne by the taxpayers over the life of such Treaty should be kept to a
    level no greater than the March 1979 estimate of those costs
    ($870,700,000) presented to the Congress by the executive branch during
    consideration of this Act by the Congress, less personnel retirement
    costs of $205,000,000, which were subtracted and charged to tolls,
    therefore resulting in net taxpayer cost of approximately $665,700,000,
    plus appropriate adjustments for inflation.
        ``(2) It is further the sense of the Congress that the actual costs
    of implementation be consistent with the obligations of the United
    States to operate the Panama Canal safely and efficiently and keep it
    secure.''.

    SEC. 3540. PRINTING.

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

                                   ``printing

        ``Sec. 1306. <<NOTE: 22 USC 3714b.>>  (a) Section 501 of title 44,
    United States Code, shall not apply to direct purchase by the Commission
    for its use of printing, binding, and blank-book work in the Republic of
    Panama when the Commission determines that such direct purchase is in
    the best interest of the Government.

        ``(b) This section shall not affect the Commission's authority,
    under chapter 5 of title 44, United States Code, to operate a field
    printing plant.''.

    SEC. 3541. ACCOUNTING POLICIES.

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

    [[Page 110 STAT. 2867]]

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

    SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

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

    SEC. 3543. POSTAL SERVICE.

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

                                ``postal service

        ``Sec. 1331. (a) The Commission shall take possession of and
    administer the funds of the Canal Zone postal service and shall assume
    its obligations.
        ``(b) <<NOTE: Effective date.>>  Effective December 1, 1999, neither
    the Commission nor the United States Government shall be responsible for
    the distribution of any accumulated unpaid balances relating to Canal
    Zone postal-savings deposits, postal-savings certificates, and postal
    money orders.

        ``(c) Mail addressed to the Canal Zone from or through the
    continental United States may be routed by the United States Postal
    Service to the military post offices of the United States Armed Forces
    in the Republic of Panama. Such military post offices shall provide the
    required directory services and shall accept such mail to the extent
    permitted under the Panama Canal Treaty of 1977 and related
    agreements. <<NOTE: Records.>> The Commission shall furnish personnel,
    records, and other services to such military post offices to assure
    wherever appropriate the distribution, rerouting, or return of such
    mail.''.
    SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE TO
                              CLAIM.

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

    SEC. 3545. OPERATIONS REGULATIONS.

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

    SEC. 3546. MISCELLANEOUS REPEALS.

        (a) Repeals.--The following provisions are repealed:
                (1) Section 1605 (22 U.S.C. 3795), relating to interim toll
            adjustment.
                (2) Section 1701 (22 U.S.C. 3801), relating to the authority
            of the President to prescribe certain regulations.
                (3) Section 1702 (22 U.S.C. 3802), relating to the authority
            of the Panama Canal Commission to prescribe certain
            regulations.

    [[Page 110 STAT. 2868]]

                (4) Title II (22 U.S.C. 3841-3852), relating to the Treaty
            transition period.
                (5) Chapter 1 of title III (22 U.S.C. 3861), relating to
            cemeteries.
                (6) Section 1246, <<NOTE: 22 USC 3683.>>  relating to
            appliances for certain injured employees.
                (7) Section 1251, relating to leave for jury or witness
            service.
                (8) Section 1301, <<NOTE: 22 USC 3711.>>  relating to Canal
            Zone Government funds.
                (9) Section 1313(c), <<NOTE: 22 USC 3723.>>  relating to
            audits.

        (b) Conforming Amendments.--Section 1313 is further
    amended by redesignating subsections (d) and (e) as subsections (c) and
    (d), respectively.

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

        Section 3302 <<NOTE: 22 USC 3873.>>  is amended to read as follows:

                 ``exemption from metric conversion act of 1975

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

    SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

        (a) Title 5 Employment Law.--Title 5, United States Code, is amended
    as follows:
                (1) Section 3401(1) is amended--
                        (A) by striking out clause (v); and
                        (B) by redesignating clauses (vi), (vii), and (viii)
                    as clauses (v), (vi), and (vii), respectively.
                (2) Section 5102 is amended--
                        (A) in subsection (a)(1)--
                              (i) by striking out clause (vi); and
                              (ii) by redesignating clauses (vii), (viii),
                          (ix), (x), and (xi) as clauses (vi), (vii),
                          (viii), (ix), and (x), respectively; and
                        (B) in subsection (c), by striking out paragraph
                    (12).
                (3) Subchapter IV of chapter 53 is amended--
                        (A) in section 5342(a)(1)--
                              (i) by striking out subparagraph (G); and
                              (ii) by redesignating subparagraphs (H), (I),
                          (J), (K), and (L) as subparagraphs (G), (H), (I),
                          (J), and (K) respectively;
                        (B) in section 5343(a)(5), by striking out ``the
                    areas and installations in the Republic of Panama'' and
                    all that follows through ``Panama Canal Act of 1979),'';
                    and
                        (C) in section 5348--
                              (i) by striking out subsection (b);
                              (ii) by redesignating subsection (c) as
                          subsection (b); and
                              (iii) in subsection (a), by striking out
                          ``subsections (b) and (c)'' and inserting in lieu
                          thereof ``sub-
                          section (b)''.
                (4) Section 5373 is amended--
                        (A) by striking out paragraph (1); and
                        (B) by redesignating paragraphs (2), (3), and (4) as
                    paragraphs (1), (2), and (3) respectively.
                (5) Section 5537(c) is amended by striking out ``the United
            States District Court for the District of the Canal Zone, the

    [[Page 110 STAT. 2869]]

            District Court of Guam, and the District Court of the Virgin
            Islands.'' and inserting in lieu thereof ``the District Court of
            Guam and the District Court of the Virgin Islands.''.
                (6) Section 5541(2)(xii) is amended--
                        (A) by inserting ``or'' after ``Services Admini-
                    stration,''; and
                        (B) by striking out ``, or a vessel employee of the
                    Panama Canal Commission'';
                (7) Section 5924(3) is amended by striking out the last
            sentence.
                (8) Section 6322(a) is amended--
                        (A) by striking out ``Puerto Rico,'' and inserting
                    in lieu thereof ``Puerto Rico or''; and
                        (B) by striking out ``, or the Republic of Panama''.
                (9) Section 7901(f) is amended to read as follows:

        ``(f) The health programs conducted by the Tennessee Valley
    Authority are not affected by this section.''.
        (b) Cross References in Panama Canal Act.--
                (1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is amended by
            striking out ``section 1212(B)(2)'' and inserting in lieu
            thereof ``section 1212(b)''.
                (2) Section 1303 (22 U.S.C. 3713) is amended by striking out
            ``section 1302(c)(1)'' both places it appears and inserting in
            lieu thereof ``section 1302(b)(1)''.
                (3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by
            striking out ``section 1302(c)'' and inserting in lieu thereof
            ``section 1302(b)''.

        (c) Section Headings.--
                (1) The heading of section 3 (22 U.S.C. 3602) is amended to
            read as follows:

                                ``definitions''.

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

               ``administration of certain disability benefits''.

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

    ``Sec. 3. Definitions.''.

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

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

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

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

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

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

    [[Page 110 STAT. 2870]]

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

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

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

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

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

    ``Sec. 1306. Printing.''.

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

    SEC. 3549. REPEAL OF PANAMA CANAL CODE.

        The Panama Canal Code is repealed.

        Approved September 23, 1996.

    LEGISLATIVE HISTORY--H.R. 3230 (S. 1745):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 104-563 (Comm. on National Security) and 104-724
    (Comm. of Conference).
    SENATE REPORTS: Nos. 104-267 (Comm. on Armed Services) and 104-278
    (Select Comm. on Intelligence) both accompanying S. 1745.
    CONGRESSIONAL RECORD, Vol. 142 (1996):
                May 14, 15, considered and passed House.
                June 18-20, 24-28, July 10, S. 1745 considered and passed
                    Senate; H.R. 3230, amended, passed in lieu.
                Aug. 1, House agreed to conference report.
                Sept. 10, Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
                Sept. 23, Presidential remarks and statement.

                                      <all>