    [105th Congress Public Law 261]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ261.105]

    [[Page 1919]]

     STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

    [[Page 112 STAT. 1920]]

    Public Law 105-261
    105th Congress

                                     An Act

    To authorize appropriations for fiscal year 1999 for military activities
                                     of the
       Department of Defense, for military construction, and for defense
    activities of the Department of Energy, to prescribe personnel strengths
            for such fiscal year for the Armed Forces, and for other
                purposes. <<NOTE: Oct. 17, 1998 -  [H.R. 3616]>>

        Be it enacted by the Senate <<NOTE: Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999.>> and House of Representatives
    of the United States of America in Congress assembled,

    SECTION 1. SHORT TITLE; FINDINGS.

        (a) Short Title.--This Act may be cited as the ``Strom
    Thurmond National Defense Authorization Act for Fiscal Year 1999''.
        (b) Findings.--Congress makes the following findings:
                (1) Senator Strom Thurmond of South Carolina first became a
            member of the Committee on Armed Services of the United States
            Senate on January 19, 1959. Senator Thurmond's continuous
            service on that committee covers more than 75 percent of the
            period of the existence of the committee, which was established
            immediately after World War II, and more than 20 percent of the
            period of the existence of military and naval affairs committees
            of Congress, the original bodies of which were formed in 1816.
                (2) Senator Thurmond came to Congress and the committee as a
            distinguished veteran of service, including combat service, in
            the Armed Forces of the United States.
                (3) Senator Thurmond was commissioned as a reserve second
            lieutenant of infantry in 1924. He served with great distinction
            with the First Army in the European Theater of Operations during
            World War II, landing in Normandy in a glider with the 82nd
            Airborne Division on D-Day. He was transferred to the Pacific
            Theater of Operations at the end of the war in Europe and was
            serving in the Philippines when Japan surrendered.
                (4) Having reverted to Reserve status at the end of World
            War II, Senator Thurmond was promoted to brigadier general in
            the United States Army Reserve in 1954. He served as President
            of the Reserve Officers Association beginning that same year and
            ending in 1955. Senator Thurmond was promoted to major general
            in the United States Army Reserve in 1959. He transferred to the
            Retired Reserve on January 1, 1965, after 36 years of
            commissioned service.
                (5) The distinguished character of Senator Thurmond's
            military service has been recognized by awards of numerous
            decorations that include the Legion of Merit, the Bronze Star
            medal with ``V'' device, the Army Commendation Medal, the
            Belgian

    [[Page 112 STAT. 1921]]

            Cross of the Order of the Crown, and the French Croix de Guerre.
                (6) Senator Thurmond has served as chairman of the Committee
            on Armed Services of the United States Senate since 1995 and
            served as the ranking minority member of the committee from 1993
            to 1995. Senator Thurmond concludes his service as chairman at
            the end of the One Hundred Fifth Congress, but is to continue to
            serve the committee as a member in successive Congresses.
                (7) This Act is the fortieth annual authorization bill for
            the Department of Defense for which Senator Thurmond has taken a
            major responsibility as a member of the Committee on Armed
            Services of the Senate.
                (8) Senator Thurmond, as an Army officer and a legislator,
            has made matchless contributions to the national security of the
            United States that, in duration and in quality, are unique.
                (9) It is altogether fitting and proper that this Act, the
            last annual authorization Act for the national defense that
            Senator Thurmond manages in and for the United States Senate as
            chairman of the Committee on Armed Services, be named in his
            honor, as provided in subsection (a).

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

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

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

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

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

                            Subtitle C--Navy Programs

    Sec. 121. CVN-77 nuclear aircraft carrier program.

    [[Page 112 STAT. 1922]]

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

                         Subtitle D--Air Force Programs

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

                            Subtitle E--Other Matters

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

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

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Ballistic Missile Defense

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

                            Subtitle D--Other Matters

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

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Environmental Provisions

    Sec. 321. Settlement of claims of foreign governments for environmental
               cleanup of overseas sites formerly used by the Department of
               Defense.
    Sec. 322. Authority to pay negotiated settlement for environmental
               cleanup of
               formerly used defense sites in Canada.

    [[Page 112 STAT. 1923]]

    Sec. 323. Removal of underground storage tanks.
    Sec. 324. Report regarding polychlorinated biphenyl waste under
               Department of
               Defense control overseas.
    Sec. 325. Modification of deadline for submittal to Congress of annual
               reports on
               environmental activities.
    Sec. 326. Submarine solid waste control.
    Sec. 327. Arctic Military Environmental Cooperation Program.
    Sec. 328. Sense of Congress regarding oil spill prevention training for
               personnel on board Navy vessels.

                    Subtitle D--Information Technology Issues

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

             Subtitle E--Defense Infrastructure Support Improvement

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

       Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

                            Subtitle G--Other Matters

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

    [[Page 112 STAT. 1924]]

    Sec. 378. Strategic plan for expansion of distance learning initiatives.
    Sec. 379. Public availability of operating agreements between military
               installations and financial institutions.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

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

                           Subtitle B--Reserve Forces

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

                   Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

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

                      Subtitle B--Reserve Component Matters

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

                   Subtitle C--Military Education and Training

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

               Subtitle D--Decorations, Awards, and Commendations

    Sec. 531. Study of new decorations for injury or death in line of duty.

    [[Page 112 STAT. 1925]]

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

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

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

                               Subtitle F--Reports

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

                            Subtitle G--Other Matters

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

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. Three-month extension of certain bonuses and special pay
               authorities for reserve forces.

    [[Page 112 STAT. 1926]]

    Sec. 612. Three-month extension of certain bonuses and special pay
               authorities for nurse officer candidates, registered nurses,
               and nurse anesthetists.
    Sec. 613. Three-month extension of authorities relating to payment of
               other bonuses and special pays.
    Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in
               certain pay grades.
    Sec. 615. Aviation career incentive pay and aviation officer retention
               bonus.
    Sec. 616. Diving duty special pay for divers having diving duty as a
               nonprimary duty.
    Sec. 617. Hardship duty pay.
    Sec. 618. Selective reenlistment bonus eligibility for Reserve members
               performing active Guard and Reserve duty.
    Sec. 619. Repeal of 10 percent limitation on certain selective
               reenlistment bonuses.
    Sec. 620. Increase in maximum amount authorized for Army enlistment
               bonus.
    Sec. 621. Equitable treatment of Reserves eligible for special pay for
               duty subject to hostile fire or imminent danger.
    Sec. 622. Retention incentives initiative for critically short military
               occupational specialties.

                Subtitle C--Travel and Transportation Allowances

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

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

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

                            Subtitle E--Other Matters

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

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

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

                           Subtitle B--TRICARE Program

    Sec. 711. Payment of claims for provision of health care under the
               TRICARE
               program for which a third party may be liable.

    [[Page 112 STAT. 1927]]

    Sec. 712. TRICARE prime automatic enrollments and retiree payment
               options.
    Sec. 713. System for tracking data and measuring performance in meeting
               TRICARE access standards.
    Sec. 714. Establishment of appeals process for claimcheck denials.
    Sec. 715. Reviews relating to accessibility of health care under
               TRICARE.

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

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

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

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

                            Subtitle E--Other Matters

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

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

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

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

                            Subtitle B--Other Matters

    Sec. 811. Eligibility of involuntarily downgraded employee for
               membership in an
               acquisition corps.
    Sec. 812. Time for submission of annual report relating to Buy American
               Act.
    Sec. 813. Procurement of travel services for official and unofficial
               travel under one contract.
    Sec. 814. Department of Defense purchases through other agencies.
    Sec. 815. Supervision of defense acquisition university structure by
               Under Secretary of Defense for Acquisition and Technology.
    Sec. 816. Pilot programs for testing program manager performance of
               product
               support oversight responsibilities for life cycle of
               acquisition programs.

    [[Page 112 STAT. 1928]]

    Sec. 817. Scope of protection of certain information from disclosure.
    Sec. 818. Plan for rapid transition from completion of small business
               innovation
               research into defense acquisition programs.
    Sec. 819. Five-year authority for Secretary of the Navy to exchange
               certain items.
    Sec. 820. Permanent authority for use of major range and test facility
               installations by commercial entities.
    Sec. 821. Inventory exchange authorized for certain fuel delivery
               contract.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           Subtitle A--Department of Defense Officers and Organization

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

             Subtitle B--Department of Defense Financial Management

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

                  Subtitle C--Joint Warfighting Experimentation

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

                            Subtitle D--Other Matters

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

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

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

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1011. Revision to requirement for continued listing of two Iowa-
               class battleships on the Naval Vessel Register.

    [[Page 112 STAT. 1929]]

    Sec. 1012. Transfer of U.S.S. NEW JERSEY.
    Sec. 1013. Homeporting of the U.S.S. IOWA in San Francisco, California.
    Sec. 1014. Sense of Congress concerning the naming of an LPD-17 vessel.
    Sec. 1015. Reports on naval surface fire-support capabilities.
    Sec. 1016. Long-term charter of three vessels in support of submarine
               rescue, escort, and towing.
    Sec. 1017. Transfer of obsolete Army tugboat.

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

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

            Subtitle D--Miscellaneous Report Requirements and Repeals

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

                    Subtitle E--Armed Forces Retirement Home

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

                Subtitle F--Matters Relating to Defense Property

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

                 Subtitle G--Other Department of Defense Matters

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

                            Subtitle H--Other Matters

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

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

    [[Page 112 STAT. 1930]]

    Sec. 1107. Observance of certain holidays at duty posts outside the
               United States.
    Sec. 1108. Continuation of random drug testing program for certain
               Department of Defense employees.
    Sec. 1109. Department of Defense employee voluntary early retirement
               authority.

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

             Subtitle B--Matters Relating to Contingency Operations

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

                 Subtitle C--Matters Relating to NATO and Europe

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

                            Subtitle D--Other Matters

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

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

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

               category.
    Sec. 1308. Report on biological weapons programs in Russia.
    Sec. 1309. Report on individuals with expertise in former Soviet weapons
               of mass destruction programs.

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

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

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

                        Subtitle A--Arms Control Matters

    Sec. 1501. One-year extension of limitation on retirement or
               dismantlement of
               strategic nuclear delivery systems.

    [[Page 112 STAT. 1931]]

    Sec. 1502. Transmission of executive branch reports providing Congress
               with classified summaries of arms control developments.
    Sec. 1503. Report on adequacy of emergency communications capabilities
               between United States and Russia.
    Sec. 1504. Russian nonstrategic nuclear weapons.

                      Subtitle B--Satellite Export Controls

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

                    Subtitle C--Other Export Control Matters

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

                    Subtitle D--Counterproliferation Matters

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

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Sec. 2001. Short title.

                                 TITLE XXI--ARMY

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

                                TITLE XXII--NAVY

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

                             TITLE XXIII--AIR FORCE

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

                          TITLE XXIV--DEFENSE AGENCIES

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

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

    [[Page 112 STAT. 1932]]

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                        TITLE XXVIII--GENERAL PROVISIONS

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

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

             Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Defense Base Closure and Realignment

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

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

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

                            Part II--Navy Conveyances

    Sec. 2851. Conveyance of easement, Marine Corps Base, Camp Pendleton,
               California.

    [[Page 112 STAT. 1933]]

    Sec. 2852. Land exchange, Naval Reserve Readiness Center, Portland,
               Maine.
    Sec. 2853. Land conveyance, Naval and Marine Corps Reserve facility,
               Youngstown, Ohio.
    Sec. 2854. Land conveyance, Naval Air Reserve Center, Minneapolis,
               Minnesota.

                         Part III--Air Force Conveyances

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

                            Subtitle E--Other Matters

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

                   TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

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

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

                    Subtitle B--Recurring General Provisions

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Permanent extension of funding prohibition relating to
               international
               cooperative stockpile stewardship.

    [[Page 112 STAT. 1934]]

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

                            Subtitle D--Other Matters

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

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

                       TITLE XXXV--PANAMA CANAL COMMISSION

    Sec. 3501. Short title; references to Panama Canal Act of 1979.
    Sec. 3502. Authorization of expenditures.
    Sec. 3503. Purchase of vehicles.
    Sec. 3504. Expenditures only in accordance with treaties.
    Sec. 3505. Donations to the Commission.
    Sec. 3506. Agreements for United States to provide post-transfer
               administrative services for certain employee benefits.
    Sec. 3507. Sunset of United States overseas benefits just before
               transfer.

    [[Page 112 STAT. 1935]]

    Sec. 3508. Central examining office.
    Sec. 3509. Liability for vessel accidents.
    Sec. 3510. Panama Canal Board of Contract Appeals.
    Sec. 3511. Restatement of requirement that Secretary of Defense designee
               on
               Panama Canal Commission supervisory board be a current
               officer of the Department of Defense.
    Sec. 3512. Technical amendments.

                      TITLE XXXVI--MARITIME ADMINISTRATION

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

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

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

                  TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

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

                          TITLE XXXIX--RADIO FREE ASIA

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

    SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

    Sec. 111. Multiyear procurement authority for Longbow Hellfire Missile
               program.
    Sec. 112. Conditions for award of a second-source procurement contract
               for the
               Family of Medium Tactical Vehicles.

    [[Page 112 STAT. 1936]]

    Sec. 113. Armored system modernization.
    Sec. 114. Reactive armor tiles.
    Sec. 115. Extension of authority to carry out Armament Retooling and
               Manufacturing Support Initiative.

                            Subtitle C--Navy Programs

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

                         Subtitle D--Air Force Programs

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

                            Subtitle E--Other Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

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

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for fiscal
    year 1999 for procurement for the Navy as follows:
                (1) For aircraft, $7,642,200,000.
                (2) For weapons, including missiles and torpedoes,
            $1,223,903,000.
                (3) For shipbuilding and conversion, $6,033,480,000.
                (4) For other procurement, $4,042,975,000.

        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 1999 for procurement for the Marine Corps in the amount
    of $881,896,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for procurement of ammunition for the Navy and the
    Marine Corps in the amount of $463,339,000.

    SEC. 103. AIR FORCE.

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

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

    [[Page 112 STAT. 1937]]

    SEC. 105. RESERVE COMPONENTS.

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

    SEC. 106. DEFENSE INSPECTOR GENERAL.

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

    SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

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

    SEC. 108. DEFENSE HEALTH PROGRAMS.

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

    SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

                            Subtitle B--Army Programs

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

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

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

        The Secretary of the Army may award a second-source procurement
    contract for the production of the Family of Medium Tactical Vehicles
    only after the Secretary certifies in writing to the congressional
    defense committees--
                (1) that the total quantity of vehicles within the Family of
            Medium Tactical Vehicles program that the Secretary will

    [[Page 112 STAT. 1938]]

            require to be delivered (under all contracts) in any 12-month
            period will be sufficient to enable the prime contractor to
            maintain a minimum economic production level;
                (2) that the total cost to the Army of the procurements
            under the prime and second-source contracts over the period of
            those contracts will be the same as or lower than the amount
            that would be the total cost of the procurements if only one
            such contract were awarded; and
                (3) that the vehicles to be produced under those contracts
            will be produced with common components that will be
            interchangeable among similarly configured models.

    SEC. 113. ARMORED SYSTEM MODERNIZATION.

        (a) Funding.--Of the funds appropriated pursuant to the
    authorization of appropriations in section 101(3) for M1 Abrams Tank
    Modifications--
                (1) $14,300,000 shall be obligated for procurements
            associated with the M1A1D Applique Integration Program, of which
            no more than $11,400,000 may be obligated before the end of the
            30-day period beginning on the date on which the Secretary of
            the Army submits the report required under subsection (b); and
                (2) $6,000,000 shall be obligated to develop a M1A2 risk
            reduction program.

        (b) Report.--(1) Not later than January 31, 1999, the Secretary of
    the Army shall submit to the congressional defense committees a report
    on Army armored system modernization programs. The report shall
    include--
                (A) an assessment of the current acquisition and fielding
            strategy of the Army for the M1 Abrams Tank and M2A3 Bradley
            Fighting Vehicle; and
                (B) a description and assessment of alternatives to that
            strategy, including an assessment of an alternative fielding
            strategy that provides for placing all of the armored vehicles
            configured in the latest variant into one heavy corps.

        (2) The assessment of each alternative acquisition and fielding
    strategy under paragraph (1)(B) shall include the following:
                (A) The relative effects of that strategy on warfighting
            capabilities in terms of operational effectiveness and training
            and support efficiencies, taking into consideration the joint
            warfighting context.
                (B) How that strategy would facilitate the transition to the
            Future Scout and Cavalry System, the Future Combat System, or
            other armored systems for the future force structure known as
            the Army After Next.
                (C) How that strategy fits into the context of overall
            armored system modernization through 2020.
                (D) Budgetary implications.
                (E) Implications for the national technology and industrial
            base.
                (F) Innovative techniques and alternatives for maintaining
            M1A2 System Enhancement Program production.

        (3) The Secretary shall include in the report a draft of any
    legislation that may be required to execute a given alternative for M1A2
    System Enhancement Program production.
        (c) GAO Evaluation.--The Comptroller General shall review the report
    of the Secretary of the Army under subsection (b) and,

    [[Page 112 STAT. 1939]]

    not later than 30 days after the date on which that report is submitted
    to the congressional defense committees, shall submit to those
    committees a report providing the Comptroller General's views on the
    conclusions of the Secretary of the Army set forth in that report.

    SEC. 114. REACTIVE ARMOR TILES.

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

        (3) The entity carrying out the study shall request the views of the
    Secretary of the Army and the Secretary of the Navy.
        (d) Submission to Congressional Committees.--Not later than April 1,
    1999, the Secretary of Defense shall submit to the congressional defense
    committees--
                (1) the report on the study submitted to the Secretary by
            the entity carrying out the study;
                (2) the comments of the Secretary of the Army and the
            Secretary of the Navy on the study; and
                (3) for each vehicle for which there is a requirement for
            reactive armor tiles, as indicated by the results of the study,
            the Secretary's recommendations as to the number of vehicles to
            be equipped with such tiles.

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

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

    [[Page 112 STAT. 1940]]

                            Subtitle C--Navy Programs

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

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

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

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

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

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

        (b) Authority for Marine Corps Medium Tactical Vehicle
    Replacement.--Beginning with the fiscal year 1999 program year, the
    Secretary of the Navy may, in accordance with section 2306b of title 10,
    United States Code, enter into a multiyear procurement contract to
    procure the Marine Corps Medium Tactical Vehicle Replacement.

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

        (a) Review and Report Required.--Not later than June 15 of each
    year, the Comptroller General shall review the F/A-18E/F aircraft
    program and submit to Congress a report on the results of the review.
    The Comptroller General shall submit to Congress with each such report a
    certification as to whether the Comptroller General has had access to
    sufficient information to make informed judgments on the matters covered
    by the report.
        (b) Content of Report.--The report submitted on the program each
    year shall include the following:
                (1) The extent to which engineering and manufacturing
            development and operational test and evaluation under the
            program are meeting the goals established for engineering and
            manufacturing development and operational test and evaluation
            under the program, including the performance, cost, and schedule
            goals.
                (2) The status of modifications expected to have a
            significant effect on the cost or performance of the F/A-18E/F
            aircraft.

        (c) Duration of Requirement.--No report is required under this
    section after the full-rate production contract is awarded under the
    program.
        (d) Requirement to Support Annual GAO Review.--The Secretary of
    Defense and the prime contractors under the F/A-18E/F program shall
    timely provide the Comptroller General with such

    [[Page 112 STAT. 1941]]

    information on the program, including information on program
    performance, as the Comptroller General considers necessary to carry out
    this section.

                         Subtitle D--Air Force Programs

    SEC. 131. F-22 AIRCRAFT PROGRAM.

        (a) Limitation on Advance Procurement.--(1) Amounts available for
    the Department of Defense for any fiscal year for the F-22 aircraft
    program may not be obligated for advance procurement for the six Lot II
    F-22 aircraft before the applicable date under paragraph (2) or (3).
        (2) The applicable date for the purposes of paragraph (1) is the
    date on which the Secretary of Defense submits a certification under
    subsection (b)(1) unless the Secretary submits a report under subsection
    (b)(2).
        (3) If the Secretary submits a report under subsection (b)(2), the
    applicable date for the purposes of paragraph (1) is the later of--
                (A) the date on which the Secretary of Defense submits the
            report; or
                (B) the date on which the Director of Operational Test and
            Evaluation submits the certification required under subsection
            (c).

        (b) Certification by Secretary of Defense.--(1) Upon the completion
    of 433 hours of flight testing of F-22 flight test vehicles, the
    Secretary of Defense shall submit to the congressional defense
    committees a certification of the completion of that amount of flight
    testing. A certification is not required under this paragraph if the
    Secretary submits a report under paragraph (2).
        (2) If the Secretary determines that a number of hours of flight
    testing of F-22 flight test vehicles less than 433 hours provides the
    Defense Acquisition Board with a sufficient basis for deciding to
    proceed into production of Lot II F-22 aircraft, the Secretary may
    submit a report to the congressional defense committees upon the
    completion of that lesser number of hours of flight testing. A report
    under this paragraph shall contain the following:
                (A) A certification of the number of hours of flight testing
            completed.
                (B) The reasons for the Secretary's determination that the
            lesser number of hours is a sufficient basis for a decision by
            the board.
                (C) A discussion of the extent to which the Secretary's
            determination is consistent with each decision made by the
            Defense Acquisition Board since January 1997 in the case of a
            major aircraft acquisition program that the amount of flight
            testing completed for the program was sufficient or not
            sufficient to justify a decision to proceed into low-rate
            initial production.
                (D) A determination by the Secretary that it is more
            financially advantageous for the Department to proceed into
            production of Lot II F-22 aircraft than to delay production
            until completion of 433 hours of flight testing, together with
            the reasons for that determination.

        (c) Certification by the Director of Operational Test and
    Evaluation.--Upon the completion of 183 hours of the flight

    [[Page 112 STAT. 1942]]

    testing of F-22 flight test vehicles provided for in the test and
    evaluation master plan for the F-22 aircraft program, as in effect on
    October 1, 1997, the Director of Operational Test and Evaluation shall
    submit to the congressional defense committees a certification of the
    completion of that flight testing.

    SEC. 132. C-130J AIRCRAFT PROGRAM.

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

                            Subtitle E--Other Matters

    SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

        (a) Assistance to State and Local Governments.--Section 1412 of the
    Department of Defense Authorization Act, 1986 (Public Law 99-145; 50
    U.S.C. 1521), is amended by adding at the end of subsection (c) the
    following:
        ``(4)(A) In coordination with the Secretary of the Army and in
    accordance with agreements between the Secretary of the Army and the
    Director of the Federal Emergency Management Agency, the Director shall
    carry out a program to provide assistance to State and local governments
    in developing capabilities to respond to emergencies involving risks to
    the public health or safety within their jurisdictions that are
    identified by the Secretary as being risks resulting from--
                ``(i) the storage of lethal chemical agents and munitions
            referred to in subsection (a) at military installations in the
            continental United States; or
                ``(ii) the destruction of such agents and munitions at
            facilities referred to in paragraph (1)(B).

    [[Page 112 STAT. 1943]]

        ``(B) No assistance may be provided under this paragraph after the
    completion of the destruction of the United States' stockpile of lethal
    chemical agents and munitions.
        ``(C) <<NOTE: Reports.>> Not later than December 15 of each year,
    the Director shall transmit a report to Congress on the activities
    carried out under this paragraph during the fiscal year preceding the
    fiscal year in which the report is submitted.''.

        (b) Program Funding.--Section 1412(f ) of such Act <<NOTE: 50 USC
    1521.>>  (51 U.S.C. 1521(f )) is amended--
                (1) by striking out ``Identification of Funds.--Funds'' and
            inserting in lieu thereof ``Identification of Funds.--(1)
            Funds''; and
                (2) by adding at the end the following new paragraph:

        ``(2) Amounts appropriated to the Secretary for the purpose of
    carrying out subsection (c)(4) shall be promptly made available to the
    Director of the Federal Emergency Management Agency.''.
        (c) Periodic Reports.--Section 1412(g) of such Act (50 U.S.C.
    1521(g)) is amended--
                (1) in paragraph (2)(B)--
                        (A) by striking out ``and'' at the end of clause
                    (v);
                        (B) by striking out the period at the end of clause
                    (vi) and inserting in lieu thereof ``; and''; and
                        (C) by adding at the end the following new clause:
                        ``(vii) grants to State and local governments to
                    assist those governments in carrying out functions
                    relating to emergency preparedness and response in
                    accordance with subsection (c)(3).'';
                (2) by redesignating subparagraph (B) (as amended by
            paragraph (1)) and subparagraph (C) of paragraph (2) as
            subparagraphs (C) and (D), respectively; and
                (3) by inserting after paragraph (2)(A) the following new
            subparagraph (B):
                ``(B) A site-by-site description of actions taken to assist
            State and local governments (either directly or through the
            Federal Emergency Management Agency) in carrying out functions
            relating to emergency preparedness and response in accordance
            with subsection (c)(3).''.

    SEC. 142. <<NOTE: 50 USC 1521 note.>>  ALTERNATIVE TECHNOLOGIES FOR
                DESTRUCTION OF ASSEMBLED CHEMICAL WEAPONS.

        (a) Program Management.--The program manager for the Assembled
    Chemical Weapons Assessment shall continue to manage the development and
    testing (including demonstration and pilot-scale testing) of
    technologies for the destruction of lethal chemical munitions that are
    potential or demonstrated alternatives to the baseline incineration
    program. In performing such management, the program manager shall act
    independently of the program manager for Chemical Demilitarization and
    shall report to the Under Secretary of Defense for Acquisition and
    Technology.
        (b) Post-Demonstration Activities.--(1) The program manager for the
    Assembled Chemical Weapons Assessment may carry out those activities
    necessary to ensure that an alternative technology for the destruction
    of lethal chemical munitions can be implemented immediately after--
                (A) the technology has been demonstrated to be successful;
            and

    [[Page 112 STAT. 1944]]

                (B) the Under Secretary of Defense for Acquisition and
            Technology has submitted a report on the demonstration to
            Congress that includes a decision to proceed with the pilot-
            scale facility phase for an alternative technology.

        (2) To prepare for the immediate implementation of any such
    technology, the program manager may, during fiscal years 1998 and 1999,
    take the following actions:
                (A) Establish program requirements.
                (B) Prepare procurement documentation.
                (C) Develop environmental documentation.
                (D) Identify and prepare to meet public outreach and public
            participation requirements.
                (E) Prepare to award a contract for the design,
            construction, and operation of a pilot facility for the
            technology to the provider team for the technology not later
            than December 30, 1999.

        (c) Independent Evaluation.--The Under Secretary of Defense for
    Acquisition and Technology shall provide for an independent evaluation
    of the cost and schedule of the Assembled Chemical Weapons Assessment,
    which shall be performed and submitted to the Under Secretary not later
    than September 30, 1999. The evaluation shall be performed by a
    nongovernmental organization qualified to make such an evaluation.
        (d) Pilot Facilities Contracts.--(1) The Under Secretary of Defense
    for Acquisition and Technology shall determine whether to proceed with
    pilot-scale testing of a technology referred to in paragraph (2) in time
    to award a contract for the design, construction, and operation of a
    pilot facility for the technology to the provider team for the
    technology not later than December 30, 1999. If the Under Secretary
    determines to proceed with such testing, the Under Secretary shall
    (exercising the acquisition authority of the Secretary of Defense) so
    award a contract not later than such date.
        (2) Paragraph (1) applies to an alternative technology for the
    destruction of lethal chemical munitions, other than incineration, that
    the Under Secretary--
                (A) certifies in writing to Congress is--
                        (i) as safe and cost effective for disposing of
                    assembled chemical munitions as is incineration of such
                    munitions; and
                        (ii) is capable of completing the destruction of
                    such munitions on or before the later of the date by
                    which the destruction of the munitions would be
                    completed if incineration were used or the deadline date
                    for completing the destruction of the munitions under
                    the Chemical Weapons Convention; and
                (B) determines as satisfying the Federal and State
            environmental and safety laws that are applicable to the use of
            the technology and to the design, construction, and operation of
            a pilot facility for use of the technology.

        (3) The Under Secretary shall consult with the National Research
    Council in making determinations and certifications for the purpose of
    paragraph (2).
        (4) In this subsection, the term ``Chemical Weapons Convention''
    means the Convention on the Prohibition of Development, Production,
    Stockpiling and Use of Chemical Weapons and on their

    [[Page 112 STAT. 1945]]

    Destruction, opened for signature on January 13, 1993, together with
    related annexes and associated documents.
        (e) Plan for Pilot Program.--If the Secretary of Defense proceeds
    with a pilot program under section 152(f ) of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    214; 50 U.S.C. 1521(f )), the Secretary shall prepare a plan for the
    pilot program and shall submit to Congress a report on such plan
    (including information on the cost of, and schedule for, implementing
    the pilot program).
        (f ) Funding.--(1) Of the amount authorized to be appropriated under
    section 107, funds shall be available for the program manager for the
    Assembled Chemical Weapons Assessment for the following:
                (A) Demonstrations of alternative technologies under the
            Assembled Chemical Weapons Assessment.
                (B) Planning and preparation to proceed from demonstration
            of an alternative technology immediately into the development of
            a pilot-scale facility for the technology, including planning
            and preparation for--
                        (i) continued development of the technology leading
                    to deployment of the technology for use;
                        (ii) satisfaction of requirements for environmental
                    permits;
                        (iii) demonstration, testing, and evaluation;
                        (iv) initiation of actions to design a pilot plant;
                        (v) provision of support at the field office or
                    depot level for deployment of the technology for use;
                    and
                        (vi) educational outreach to the public to engender
                    support for the deployment.
                (C) The independent evaluation of cost and schedule required
            under subsection (c).

        (2) Funds authorized to be appropriated under section 107(1) are
    authorized to be used for awarding contracts in accordance with
    subsection (d) and for taking any other action authorized in this
    section.
        (f ) Assembled Chemical Weapons Assessment Defined.--In this
    section, the term ``Assembled Chemical Weapons Assessment'' means the
    pilot program carried out under section 8065 of the Department of
    Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208;
    110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

    [[Page 112 STAT. 1946]]

                      Subtitle C--Ballistic Missile Defense

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

                            Subtitle D--Other Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

    SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

    [[Page 112 STAT. 1947]]

    SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

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

    SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

        (a) Requirements Relating to Competition.--Subsection (d)(1) of
    section 2525 of title 10, United States Code, is amended--
                (1) by striking out ``(1) Competitive'' and inserting in
            lieu thereof ``(1)(A) In accordance with the policy stated in
            section 2374 of this title, competitive''; and
                (2) by adding at the end the following new subparagraph:

        ``(B) For each grant awarded and each contract, cooperative
    agreement, or other transaction entered into on a cost-share basis under
    the program, the ratio of contract recipient cost to Government cost
    shall be determined by competitive procedures. For a project for which
    the Government receives an offer from only one offeror, the contracting
    officer shall negotiate the ratio of contract recipient cost to
    Government cost that represents the best value to the Government.''.
        (b) Requirements Relating to Cost Share Waivers.--
    Subsection (d)(2) of such section is amended--
                (1) by redesignating subparagraphs (A), (B), and (C) as
            clauses (i), (ii), and (iii), respectively;
                (2) by inserting ``(A)'' after ``(2)''; and
                (3) by adding at the end the following new subparagraphs:

        ``(B) For any grant awarded or contract, cooperative agreement, or
    other transaction entered into on a basis other than a cost-sharing
    basis because of a determination made under subparagraph (A), the
    transaction file for the project concerned must document the rationale
    for the determination.
        ``(C) The Secretary of Defense may delegate the authority to make
    determinations under subparagraph (A) only to the Under Secretary of
    Defense for Acquisition and Technology or a service acquisition
    executive, as appropriate.''.
        (c) Cost Share Goal.--Subsection (d) of such section is
    amended--
                (1) by striking out paragraph (4); and
                (2) in paragraph (3)--
                        (A) by striking out ``At least'' and inserting in
                    lieu thereof ``As a goal, at least'';
                        (B) by striking out ``shall'' and inserting in lieu
                    thereof ``should''; and
                        (C) by adding at the end the following: ``The
                    Secretary of Defense, in coordination with the
                    Secretaries of the military departments and upon
                    recommendation of the Under Secretary of Defense for
                    Acquisition and Technology, shall establish annual
                    objectives to meet such goal.''.

        (d) Additional Information To Be Included in Five-Year Plan.--
    Subsection (e)(2) of such section is amended to read as follows:
        ``(2) The plan shall include the following:
                ``(A) An assessment of the effectiveness of the program.

    [[Page 112 STAT. 1948]]

                ``(B) An assessment of the extent to which the costs of
            projects are being shared by the following:
                        ``(i) Commercial enterprises in the private sector.
                        ``(ii) Department of Defense program offices,
                    including weapon system program offices.
                        ``(iii) Departments and agencies of the Federal
                    Government outside the Department of Defense.
                        ``(iv) Institutions of higher education.
                        ``(v) Other institutions not operated for profit.
                        ``(vi) Other sources.''.

    SEC. 214. <<NOTE: 10 USC 2501 note.>>  SENSE OF CONGRESS ON THE DEFENSE
                SCIENCE AND TECHNOLOGY PROGRAM.

        (a) Funding Requirements for the Defense Science and Technology
    Program Budget.--It is the sense of Congress that, for each of the
    fiscal years 2000 through 2008, it should be an objective of the
    Secretary of Defense to increase the budget for the Defense Science and
    Technology Program for the fiscal year over the budget for that program
    for the preceding fiscal year by a percent that is at least two percent
    above the rate of inflation as determined by the Office of Management
    and Budget.
        (b) Guidelines for the Defense Science and Technology Program.--
                (1) Relationship of defense science and technology program
            to university research.--It is the sense of Congress that the
            following should be key objectives of the Defense Science and
            Technology Program:
                        (A) The sustainment of research capabilities in
                    scientific and engineering disciplines critical to the
                    Department of Defense.
                        (B) The education and training of the next
                    generation of scientists and engineers in disciplines
                    that are relevant to future defense systems,
                    particularly through the conduct of basic research.
                        (C) The continued support of the Defense
                    Experimental Program to Stimulate Competitive Research
                    and research programs at historically black colleges and
                    universities and minority institutions.
                (2) Relationship of the defense science and technology
            program to commercial research and technology.--(A) It is the
            sense of Congress that, in supporting projects within the
            Defense Science and Technology Program, the Secretary of Defense
            should attempt to leverage commercial research, technology,
            products, and processes for the benefit of the Department of
            Defense.
                (B) It is the sense of Congress that funds made available
            for projects and programs of the Defense Science and Technology
            Program should be used only for the benefit of the Department of
            Defense, which includes--
                        (i) the development of technology that has only
                    military applications;
                        (ii) the development of militarily useful,
                    commercially viable technology; and
                        (iii) the adaptation of commercial technology,
                    products, or processes for military purposes.
                (3) Synergistic management of research and development.--It
            is the sense of Congress that the Secretary of Defense

    [[Page 112 STAT. 1949]]

            should have the flexibility to allocate a combination of funds
            available for the Department of Defense for basic and applied
            research and for advanced development to support any individual
            project or program within the Defense Science and Technology
            Program, but such flexibility should not change the allocation
            of funds in any fiscal year among basic and applied research and
            advanced development.
                (4) Management of science and technology.--It is the sense
            of Congress that--
                        (A) management and funding for the Defense Science
                    and Technology Program for each military department
                    should receive a level of priority and leadership
                    attention equal to the level received by program
                    acquisition, and the Secretary of each military
                    department should ensure that a senior official in the
                    department holds the appropriate title and
                    responsibility to ensure effective oversight and
                    emphasis on science and technology;
                        (B) to ensure an appropriate long-term focus for
                    investments, a sufficient percentage of science and
                    technology funds should be directed toward new
                    technology areas, and annual reviews should be conducted
                    for ongoing research areas to ensure that those funded
                    initiatives are either integrated into acquisition
                    programs or discontinued when appropriate;
                        (C) the Secretary of each military department should
                    take appropriate steps to ensure that sufficient numbers
                    of officers and civilian employees in the department
                    hold advanced degrees in technical fields; and
                        (D) of particular concern, the Secretary of the Air
                    Force should take appropriate measures to ensure that
                    sufficient numbers of scientists and engineers are
                    maintained to address the technological challenges faced
                    in the areas of air, space, and information technology.

        (c) Study.--
                (1) Requirement.--The Secretary of Defense, in cooperation
            with the National Research Council of the National Academy of
            Sciences, shall conduct a study on the technology base of the
            Department of Defense.
                (2) Matters covered.--The study shall--
                        (A) result in recommendations on the minimum
                    requirements for maintaining a technology base that is
                    sufficient, based on both historical developments and
                    future projections, to project superiority in air and
                    space weapons systems and in information technology;
                        (B) address the effects on national defense and
                    civilian aerospace industries and information technology
                    of reducing funding below the goal described in
                    subsection (a); and
                        (C) result in recommendations on the appropriate
                    levels of staff with baccalaureate, masters, and
                    doctorate degrees, and the optimal ratio of civilian and
                    military staff holding such degrees, to ensure that
                    science and technology functions of the Department of
                    Defense remain vital.
                (3) Report.--Not later than 120 days after the date on which
            the study required under paragraph (1) is completed, the
            Secretary shall submit to Congress a report on the results of
            the study.

    [[Page 112 STAT. 1950]]

        (d) Definitions.--In this section:
                (1) The term ``Defense Science and Technology Program''
            means basic and applied research and advanced development.
                (2) The term ``basic and applied research'' means work
            funded in program elements for defense research and development
            under Department of Defense category 6.1 or 6.2.
                (3) The term ``advanced development'' means work funded in
            program elements for defense research and development under
            Department of Defense category 6.3.

    SEC. 215. NEXT GENERATION INTERNET PROGRAM.

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

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

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

        (c) Submission of Report.--The Secretary of the Army shall submit
    the report not later than March 1, 1999.

    SEC. 217. AIRBORNE LASER PROGRAM.

        (a) Assessment of Technical and Operational Aspects.--The Secretary
    of Defense shall conduct an assessment of the technical and operational
    aspects of the Airborne Laser Program. In conducting the assessment, the
    Secretary shall establish an independent team of persons from outside
    the Department of Defense who are experts in relevant fields to review
    the technical

    [[Page 112 STAT. 1951]]

    and operational aspects of the Airborne Laser Program. The team shall
    assess the following:
                (1) Whether additional ground testing or other forms of data
            collection should be completed before initial modification of a
            commercial aircraft to an Airborne Laser configuration.
                (2) The adequacy of exit criteria for the program definition
            and risk reduction phase of the Airborne Laser Program.
                (3) The adequacy of current Airborne Laser operational
            concepts.

        (b) Report on Assessment.--Not later than March 15, 1999, the
    Secretary shall submit to Congress a report on the assessment. The
    report shall include the Secretary's findings and any recommendations
    that the Secretary considers appropriate.
        (c) Funding for Program.--Of the amount authorized to be
    appropriated under section 201(3), $235,219,000 shall be available for
    the Airborne Laser Program.
        (d) Limitation.--Of the amount made available pursuant to subsection
    (c), not more than $185,000,000 may be obligated until 30 days after the
    Secretary submits the report required by subsection (b).

    SEC. 218. <<NOTE: 10 USC 2281 note.>>  ENHANCED GLOBAL POSITIONING
                SYSTEM PROGRAM.

        (a) Policy on Priority for Development of Enhanced GPS System.--The
    development of an enhanced Global Positioning System is an urgent
    national security priority.
        (b) Development Required.--To fulfill the requirements described in
    section 279(b) of the National Defense Authorization Act for Fiscal Year
    1996 (Public Law 104-106; 110 Stat. 243) and section 2281 of title 10,
    United States Code, the Secretary of Defense shall develop an enhanced
    Global Positioning System in accordance with the priority declared in
    subsection (a). The enhanced Global Positioning System shall include the
    following elements:
                (1) An evolved satellite system that includes increased
            signal power and other improvements such as regional-level
            directional signal enhancements.
                (2) Enhanced receivers and user equipment that are capable
            of providing military users with direct access to encrypted
            Global Positioning System signals.
                (3) To the extent funded by the Secretary of Transportation,
            additional civil frequencies and other enhancements for civil
            users.

        (c) Sense of Congress Regarding Funding.--It is the sense of
    Congress that--
                (1) the Secretary of Defense should ensure that the future-
            years defense program provides for sufficient funding to develop
            and deploy an enhanced Global Positioning System in accordance
            with the priority declared in subsection (a); and
                (2) the Secretary of Transportation should provide
            sufficient funding to support additional civil frequencies for
            the Global Positioning System and other enhancements of the
            system for civil users.

        (d) Plan for Development of Enhanced Global Positioning System.--Not
    later than April 15, 1999, the Secretary of Defense shall submit to
    Congress a plan for carrying out the requirements of subsection (b).

    [[Page 112 STAT. 1952]]

        (e) Delayed Effective Date for Limitation on Procurement of Systems
    Not GPS-Equipped.--Section 152(b) of the National Defense Authorization
    Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is amended
    by striking out ``2000'' and inserting in lieu thereof ``2005''.
        (f ) Funding From Authorized Appropriations for Fiscal Year 1999.--
    Of the amounts authorized to be appropriated under section 201(3),
    $44,000,000 shall be available to establish and carry out an enhanced
    Global Positioning System program.

                      Subtitle C--Ballistic Missile Defense

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

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

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

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

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

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

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

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

    [[Page 112 STAT. 1953]]

    SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

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

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

        ``(a) Program Elements Specified.--In the budget justification
    materials submitted to Congress in support of the Department of Defense
    budget for any fiscal year (as submitted with the budget of the
    President under section 1105(a) of title 31), the amount requested for
    activities of the Ballistic Missile Defense Organization shall be set
    forth in accordance with the following program elements:
                ``(1) The Patriot system.
                ``(2) The Navy Area system.
                ``(3) The Theater High-Altitude Area Defense system.
                ``(4) The Navy Theater Wide system.
                ``(5) The Medium Extended Air Defense System.
                ``(6) Joint Theater Missile Defense.
                ``(7) National Missile Defense.
                ``(8) Support Technologies.
                ``(9) Family of Systems Engineering and Integration.
                ``(10) Ballistic Missile Defense Technical Operations.
                ``(11) Threat and Countermeasures.
                ``(12) International Cooperative Programs.

        ``(b) Treatment of Major Defense Acquisition Programs.--Amounts
    requested for Theater Missile Defense and National Missile Defense major
    defense acquisition programs shall be specified in individual, dedicated
    program elements, and amounts appropriated for those programs shall be
    available only for Ballistic Missile Defense activities.
        ``(c) Management and Support.--The amount requested for each program
    element specified in subsection (a) shall include requests for the
    amounts necessary for the management and support of the programs,
    projects, and activities contained in that program element.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 222 the
    following new item:

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

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

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

        (a) Establishment of Competitive Contractor.--(1) The Secretary of
    Defense shall take appropriate steps to implement technical and price
    competition for the development and production of the interceptor
    missile for the Theater High-Altitude Area Defense (THAAD) system.
        (2) The Secretary shall take such steps as necessary to ensure that
    the prime contractor (as of the date of the enactment of this Act) for
    the THAAD system provides the cooperation needed to establish the
    technical and price competition required in subsection (a).

    [[Page 112 STAT. 1954]]

        (3) The Secretary shall use the authority provided in section
    2304(c)(2) of title 10, United States Code, to expedite the
    implementation of paragraphs (1) and (2).
        (4) Of the amount made available under section 201(4) for the THAAD
    System, $29,600,000 shall be available to establish the technical and
    price competition required in paragraph (1).
        (b) Cost Sharing Arrangement.--(1) The Secretary of Defense shall
    contractually establish with the THAAD interceptor prime contractor an
    appropriate arrangement for sharing between the United States and that
    contractor the costs for flight test failures of the interceptor missile
    for the THAAD system beginning with the flight test numbered 9.
        (2) For purposes of paragraph (1), the term ``THAAD interceptor
    prime contractor'' means the firm that as of May 14, 1998, is the prime
    contractor for the interceptor missile for the Theater High-Altitude
    Area Defense system.
        (c) Engineering and Manufacturing Development Phase for Other
    Elements of the THAAD System.--The Secretary of Defense may proceed with
    the milestone approval process for the Engineering and Manufacturing
    Development phase for the Battle Management and Command, Control, and
    Communications (BM/C<SUP>3</SUP>) element of the THAAD system and for
    the Ground Based Radar (GBR) element for that system without regard to
    the stage of development of the interceptor missile for that system.
        (d) Plan for Contingency Capability.--(1) The Secretary of Defense
    shall prepare a plan that would allow for deployment of THAAD missiles
    and the other elements of the THAAD system referred to in subsection (c)
    in response to theater ballistic missile threats that evolve before
    United States military forces are equipped with the objective
    configuration of those missiles and elements.
        (2) The Secretary shall submit a report <<NOTE: Reports.>>  on the
    plan to the congressional defense committees by December 15, 1998.

        (e) Limitation on Entering Engineering and Manufacturing Development
    phase.--(1) The Secretary of Defense may not approve the commencement of
    the Engineering and Manufacturing Development phase for the interceptor
    missile for the THAAD system until there have been 3 successful tests of
    that missile.
        (2) For purposes of paragraph (1), a successful test of the
    interceptor missile of the THAAD system is a body-to-body intercept by
    that missile of a ballistic missile target.

                            Subtitle D--Other Matters

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

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

    SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

        Amounts authorized to be appropriated under section 201 are
    available for a NATO alliance ground surveillance concept definition
    that is based on the Joint Surveillance Target Attack Radar System

    [[Page 112 STAT. 1955]]

    (Joint STARS) Radar Technology Insertion Program (RTIP) sensor of the
    United States, as follows:
                (1) Of the amount authorized to be appropriated under
            section 201(1), $6,400,000.
                (2) Of the amount authorized to be appropriated under
            section 201(3), $3,500,000.

    SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

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

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

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

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

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

    SEC. 246. <<NOTE: 10 USC 2358 note.>>  PILOT PROGRAM FOR REVITALIZING
                THE LABORATORIES AND TEST AND EVALUATION CENTERS OF THE
                DEPARTMENT OF DEFENSE.

        (a) Pilot Program.--(1) The Secretary of Defense may carry out a
    pilot program to demonstrate improved cooperative relationships with
    universities and other private sector entities for the performance of
    research and development functions.
        (2) Under the pilot program, the Secretary of Defense shall provide
    the director of one science and technology laboratory, and the director
    of one test and evaluation center, of each military department with
    authority for the following:
                (A) To explore innovative methods for quickly, efficiently,
            and fairly entering into cooperative relationships with
            universities and other private sector entities with respect to
            the performance of research and development functions.
                (B) To waive any restrictions on the demonstration and
            implementation of such methods that are not required by law.

    [[Page 112 STAT. 1956]]

                (C) To develop or expand innovative methods of operation
            that provide more defense research for each dollar of cost,
            including to carry out such initiatives as focusing on the
            performance of core functions and adopting more business-like
            practices.

        (3) In selecting the laboratories and centers for participation in
    the pilot program, the Secretary shall consider laboratories and centers
    where innovative management techniques have been demonstrated,
    particularly as documented under sections 1115 through 1119 of title 31,
    United States Code, relating to Government agency performance and
    results.
        (4) The Secretary may carry out the pilot program at each selected
    laboratory and center for a period of three years beginning not later
    than March 1, 1999.
        (b) Reports.--(1) Not later than March 1, 1999, the Secretary of
    Defense shall submit a report on the implementation of the pilot program
    to Congress. The report shall include the following:
                (A) Each laboratory and center selected for the pilot
            program.
                (B) To the extent possible, a description of the innovative
            concepts that are to be tested at each laboratory or center.
                (C) The criteria to be used for measuring the success of
            each concept to be tested.

        (2) Promptly after the expiration of the period for participation of
    a laboratory or center in the pilot program, the Secretary of Defense
    shall submit to Congress a final report on the participation of the
    laboratory or center in the pilot program. The report shall contain the
    following:
                (A) A description of the concepts tested.
                (B) The results of the testing.
                (C) The lessons learned.
                (D) Any proposal for legislation that the Secretary
            recommends on the basis of the experience at the laboratory or
            center under the pilot program.

        (c) Commendation.--Congress commends the Secretary of Defense for
    the progress made by the science and technology laboratories and test
    and evaluation centers of the Department of Defense and encourages the
    Secretary to take the actions necessary to ensure continued progress for
    the laboratories and test and evaluation centers in developing
    cooperative relationships with universities and other private sector
    entities for the performance of research and development functions.

    SEC. 247. <<NOTE: 50 USC 1522 note.>>  CHEMICAL WARFARE DEFENSE.

        (a) Review and Modification of Policies and Doctrines.--The
    Secretary of Defense shall review the policies and doctrines of the
    Department of Defense on chemical warfare defense and modify the
    policies and doctrine as appropriate to achieve the objectives set forth
    in subsection (b).
        (b) Objectives.--The objectives for the modification of policies and
    doctrines of the Department of Defense on chemical warfare defense are
    as follows:
                (1) To provide for adequate protection of personnel from any
            exposure to a chemical warfare agent (including chronic and low-
            level exposure to a chemical warfare agent) that would endanger
            the health of exposed personnel because of the deleterious
            effects of--

    [[Page 112 STAT. 1957]]

                        (A) a single exposure to the agent;
                        (B) exposure to the agent concurrently with other
                    dangerous exposures, such as exposures to--
                              (i) other potentially toxic substances in the
                          environment, including pesticides, other insect
                          and vermin control agents, and environmental
                          pollutants;
                              (ii) low-grade nuclear and electromagnetic
                          radiation present in the environment;
                              (iii) preventive medications (that are
                          dangerous when taken concurrently with other
                          dangerous exposures referred to in this
                          paragraph);
                              (iv) diesel fuel, jet fuel, and other
                          hydrocarbon-based fuels; and
                              (v) occupational hazards, including
                          battlefield hazards; and
                        (C) repeated exposures to the agent, or some
                    combination of one or more exposures to the agent and
                    other dangerous exposures referred to in subparagraph
                    (B), over time.
                (2) To provide for--
                        (A) the prevention of and protection against, and
                    the detection (including confirmation) of, exposures to
                    a chemical warfare agent (whether intentional or
                    inadvertent) at levels that, even if not sufficient to
                    endanger health immediately, are greater than the level
                    that is recognized under Department of Defense policies
                    as being the maximum safe level of exposure to that
                    agent for the general population; and
                        (B) the recording, reporting, coordinating, and
                    retaining of information on possible exposures described
                    in subparagraph (A), including the monitoring of the
                    health effects of exposures on humans and animals,
                    environmental effects, and ecological effects, and the
                    documenting and reporting of those effects specifically
                    by location.
                (3) To provide solutions for the concerns and mission
            requirements that are specifically applicable for one or more of
            the Armed Forces in a protracted conflict when exposures to
            chemical agents could be complex, dynamic, and occurring over an
            extended period.

        (c) Research Program.--The Secretary of Defense shall develop and
    carry out a plan to establish a research program for determining the
    effects of exposures to chemical warfare agents of the type described in
    subsection (b). The research shall be designed to yield results that can
    guide the Secretary in the evolution of policy and doctrine on exposures
    to chemical warfare agents and to develop new risk assessment methods
    and instruments with respect to such exposures. The plan shall state the
    objectives and scope of the program and include a 5-year funding plan.
        (d) Report.--Not later than May 1, 1999, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the results of the review under subsection (a) and on the research
    program developed under subsection (c). The report shall include the
    following:
                (1) Each modification of chemical warfare defense policy and
            doctrine resulting from the review.

    [[Page 112 STAT. 1958]]

                (2) Any recommended legislation regarding chemical warfare
            defense.
                (3) The plan for the research program.

    SEC. 248. LANDMINE ALTERNATIVES.

        (a) Availability of Funds.--(1) Of the amounts authorized to be
    appropriated in section 201, not more than $19,200,000 shall be
    available for activities relating to the identification, adaptation,
    modification, research, and development of existing and new technologies
    and concepts that--
                (A) would provide a combat capability that is equivalent to
            the combat capability provided by non-self destructing anti-
            personnel landmines;
                (B) would provide a combat capability that is equivalent to
            the combat capability provided by anti-personnel submunitions
            used in mixed anti-tank mine systems; or
                (C) would provide a combat capability that is equivalent to
            the combat capability provided by current mixed mine systems.

        (2) Of the amount available under paragraph (1)--
                (A) not more than $17,200,000 shall be made available for
            activities referred to in subparagraph (A) of that paragraph for
            the current efforts of the Army referred to as the Non-Self
            Destruct Alternative; and
                (B) not more than $2,000,000 shall be made available for
            activities referred to in subparagraphs (B) or (C) of that
            paragraph that relate to anti-personnel submunitions used in
            mixed mine systems or an alternative for mixed munitions.

        (b) Funding for Research Into Alternatives to Anti-Personnel
    Submunitions Used in Mixed Mine Systems or an Alternative for Mixed
    Munitions.--The Secretary shall include with the materials submitted to
    Congress with the budget for fiscal year 2000 under section 1105 of
    title 31, United States Code, an explanation of any funds requested to
    support a search for existing and new technologies and concepts that
    could provide a combat capability equivalent to the combat capability
    provided by anti-personnel submunitions used in mixed mine systems or an
    alternative to mixed munitions.
        (c) Studies.--The <<NOTE: Contracts.>>  Secretary of Defense shall
    enter into two contracts, each with an appropriate scientific
    organization--
                (1) to carry out a study on existing and new technologies
            and concepts referred to in subsection (a); and
                (2) to submit to the Secretary a report on the study,
            including any recommendations considered appropriate by the
            scientific organization.

        (d) Report.--Not later than April 1 of 2000 and 2001, the Secretary
    shall submit to the congressional defense committees a report describing
    the progress made in identifying technologies and concepts referred to
    in subsection (a). At the same time the report is submitted, the
    Secretary shall transmit to such committees copies of the reports (and
    recommendations, if any) received by the Secretary from the scientific
    organizations that carried out the studies referred to in subsection
    (c).

    [[Page 112 STAT. 1959]]

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Environmental Provisions

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

                    Subtitle D--Information Technology Issues

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

             Subtitle E--Defense Infrastructure Support Improvement

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

       Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 361. Continuation of management and funding of Defense Commissary
               Agency through the Office of the Secretary of Defense.
    Sec. 362. Expansion of current eligibility of Reserves for commissary
               benefits.
    Sec. 363. Costs payable to the Department of Defense and other Federal
               agencies for services provided to the Defense Commissary
               Agency.

    [[Page 112 STAT. 1960]]

    Sec. 364. Collection of dishonored checks presented at commissary
               stores.
    Sec. 365. Restrictions on patron access to, and purchases in, overseas
               commissaries and exchange stores.
    Sec. 366. Repeal of requirement for Air Force to sell tobacco products
               to enlisted personnel.
    Sec. 367. Prohibition on consolidation or other organizational changes
               of Department of Defense retail systems.
    Sec. 368. Defense Commissary Agency telecommunications.
    Sec. 369. Survey of commissary store patrons regarding satisfaction with
               commissary store merchandise.

                            Subtitle G--Other Matters

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

                   Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 1999
    for the use of the Armed Forces and other activities and agencies of the
    Department of Defense for expenses, not otherwise provided for, for
    operation and maintenance, in amounts as follows:
                (1) For the Army, $17,002,563,000.
                (2) For the Navy, $21,577,702,000.
                (3) For the Marine Corps, $2,528,603,000.
                (4) For the Air Force, $18,690,633,000.
                (5) For Defense-wide activities, $10,550,076,000.
                (6) For the Army Reserve, $1,198,022,000.
                (7) For the Naval Reserve, $920,639,000.
                (8) For the Marine Corps Reserve, $117,893,000.
                (9) For the Air Force Reserve, $1,722,796,000.
                (10) For the Army National Guard, $2,564,315,000.
                (11) For the Air National Guard, $3,047,433,000.
                (12) For the Defense Inspector General, $130,764,000.
                (13) For the United States Court of Appeals for the Armed
            Forces, $7,324,000.
                (14) For Environmental Restoration, Army, $370,640,000.
                (15) For Environmental Restoration, Navy, $274,600,000.
                (16) For Environmental Restoration, Air Force, $372,100,000.
                (17) For Environmental Restoration, Defense-wide,
            $25,091,000.
                (18) For Environmental Restoration, Formerly Used Defense
            Sites, $195,000,000.
                (19) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $50,000,000.

    [[Page 112 STAT. 1961]]

                (20) For Drug Interdiction and Counter-drug Activities,
            Defense-wide, $725,582,000.
                (21) For the Kaho'olawe Island Conveyance, Remediation, and
            Environmental Restoration Trust Fund, $15,000,000.
                (22) For Defense Health Program, $9,617,435,000.
                (23) For Cooperative Threat Reduction programs,
            $440,400,000.
                (24) For Overseas Contingency Operations Transfer Fund,
            $746,900,000.

    SEC. 302. WORKING CAPITAL FUNDS.

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

    SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

        (a) Transfer Authority.--To the extent provided in appropriations
    Acts, not more than $150,000,000 is authorized to be transferred from
    the National Defense Stockpile Transaction Fund to operation and
    maintenance accounts for fiscal year 1999 in amounts as follows:
                (1) For the Army, $50,000,000.
                (2) For the Navy, $50,000,000.
                (3) For the Air Force, $50,000,000.

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

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

         Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

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

    [[Page 112 STAT. 1962]]

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

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

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

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

    SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

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

                      Subtitle C--Environmental Provisions

    SEC. 321. <<NOTE: 10 USC 2701 note.>>  SETTLEMENT OF CLAIMS OF FOREIGN
                GOVERNMENTS FOR ENVIRONMENTAL CLEANUP OF OVERSEAS SITES
                FORMERLY USED BY THE DEPARTMENT OF DEFENSE.

        (a) Notice of <<NOTE: President.>>  Negotiations.--The President
    shall notify Congress before entering into any negotiations for the ex-
    gratia settlement of the claims of a government of another country
    against the United States for environmental cleanup of sites in that
    country that were formerly used by the Department of Defense.

        (b) Authorization Required for Use of Funds for Payment of
    Settlement.--No funds may be used for any payment under an ex-gratia
    settlement of any claims described in subsection (a) unless the use of
    the funds for that purpose is specifically authorized by law or
    international agreement, including a treaty.

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

        (a) Findings.--Congress makes the following findings with respect to
    the authorization of payment of settlement with Canada in subsection (b)
    regarding environmental cleanup at formerly used defense sites in
    Canada:
                (1) A unique and longstanding national security alliance
            exists between the United States and Canada.
                (2) The sites covered by the settlement were formerly used
            by the United States and Canada for their mutual defense.
                (3) There is no formal treaty or international agreement
            between the United States and Canada regarding the environmental
            cleanup of the sites.
                (4) Environmental contamination at some of the sites could
            pose a substantial risk to the health and safety of the United
            States citizens residing in States near the border between the
            United States and Canada.

    [[Page 112 STAT. 1963]]

                (5) The United States and Canada reached a negotiated
            agreement for an ex-gratia reimbursement of Canada in full
            satisfaction of claims of Canada relating to environmental
            contamination which agreement was embodied in an exchange of
            Notes between the Government of the United States and the
            Government of Canada.
                (6) There is a unique factual basis for authorizing a
            reimbursement of Canada for environmental cleanup at sites in
            Canada after the United States departure from such sites.
                (7) The basis for and authorization of such reimbursement
            does not extend to similar claims by other nations.
                (8) The Government of Canada is committed to spending the
            entire $100,000,000 of the reimbursement authorized in
            subsection (b) in the United States, which will benefit United
            States industry and United States workers.

        (b) Authority To Make Payments.--(1) Subject to subsection (c), the
    Secretary of Defense may, using funds specified under subsection (d),
    make a payment described in paragraph (2) for each fiscal year through
    fiscal year 2008 for purposes of the ex-gratia reimbursement of Canada
    in full satisfaction of any and all claims asserted against the United
    States by Canada for environmental cleanup of sites in Canada that were
    formerly used for the mutual defense of the United States and Canada.
        (2) A payment referred to in paragraph (1) is a payment of
    $10,000,000, in constant fiscal year 1996 dollars, into the Foreign
    Military Sales Trust Account for purposes of Canada.
        (c) Condition on Authority for Subsequent Fiscal Years.--A payment
    may be made under subsection (b) for a fiscal year after fiscal year
    1999 only if the Secretary of Defense submits to Congress with the
    budget for such fiscal year under section 1105 of title 31, United
    States Code, evidence that the cumulative amount expended by the
    Government of Canada for environmental cleanup activities in Canada
    during any fiscal years before such fiscal year in which a payment under
    that subsection was authorized was an amount equal to or greater than
    the aggregate amount of the payments under that subsection during such
    fiscal years.
        (d) Source of Funds.--(1) The payment under subsection (b) for
    fiscal year 1998 shall be made from amounts appropriated pursuant to
    section 301(5) of the National Defense Authorization Act for Fiscal Year
    1998 (Public Law 105-85; 111 Stat. 1669).
        (2) The payment under subsection (b) for fiscal year 1999 shall be
    made from amounts appropriated pursuant to section 301(5).
        (3) For a fiscal year after fiscal year 1999, a payment may be made
    under subsection (b) from amounts appropriated pursuant to the
    authorization of appropriations for the Department of Defense for such
    fiscal year for Operation and Maintenance, Defense-Wide.

    SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

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

    [[Page 112 STAT. 1964]]

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

        (a) Report Required.--(1) Not later than March 1, 1999, the
    Secretary of Defense shall submit to the committees specified in
    paragraph (2) a report on the status of foreign-manufactured
    polychlorinated biphenyl waste. The Secretary shall prepare the report
    in consultation with the Administrator of the Environmental Protection
    Agency and the Secretary of State.
        (2) The committees referred to in paragraph (1) are the
    following:
                (A) The Committee on Armed Services and the Committee on
            Environment and Public Works of the Senate.
                (B) The Committee on National Security, the Committee on
            Commerce, and the Committee on Transportation and Infrastructure
            of the House of Representatives.

        (b) Elements of Report.--The report under subsection (a) shall
    include the following:
                (1) The identity of each foreign country from which the
            Secretary of Defense anticipates that the Department of Defense
            will need to transport foreign-manufactured polychlorinated
            biphenyl waste into the customs territory of the United States.
                (2) For each foreign country identified under paragraph (1),
            an inventory of the type, concentrations, and estimated quantity
            of foreign-manufactured polychlorinated biphenyl waste involved,
            the reasons why disposal of the polychlorinated biphenyl waste
            in the foreign country is not available, the identity of other
            locations or facilities where disposal of the polychlorinated
            biphenyl waste in an environmentally sound manner is available,
            and the availability of alternative technologies and mobile
            units for polychlorinated biphenyl waste treatment or disposal.
                (3) An accounting of all foreign-manufactured
            polychlorinated biphenyl waste that exists as of the date of the
            enactment of this Act and as of the date of the report.
                (4) An estimate of the volume of foreign-manufactured
            polychlorinated biphenyl waste that is likely to be generated
            annually in each of the next 5 calendar years, and the basis for
            each such estimate.
                (5) A description of any hazards to human health or the
            environment posed by foreign-manufactured polychlorinated
            biphenyl waste.
                (6) A description of any international or domestic legal
            impediments that the Department has experienced in disposing of
            foreign-manufactured polychlorinated biphenyl waste in an
            environmentally sound manner.
                (7) A description of any efforts undertaken by the
            Department to seek relief from legal impediments to the disposal
            of foreign-manufactured polychlorinated biphenyl waste,
            including the relief available pursuant to section 6(e) or 22 of
            the Toxic Substances Control Act (15 U.S.C. 2605(e), 2621).
                (8) The identity of the possible disposal or treatment
            facilities in the United States that would be used if foreign-
            manufactured polychlorinated biphenyl waste were transported
            into the customs territory of the United States, and the method
            of disposal or treatment at each such facility.

    [[Page 112 STAT. 1965]]

                (9) A description of Department policy and practice
            concerning procurement or purchase of foreign-manufactured
            polychlorinated biphenyls or materials containing foreign-
            manufactured polychlorinated biphenyls.

        (c) Recommendations.--The report shall also include such
    recommendations as the Secretary of Defense, with the concurrence of the
    Administrator of the Environmental Protection Agency and the Secretary
    of State, considers necessary regarding changes to United States law to
    allow for the disposal, in an environmentally sound manner, of foreign-
    manufactured polychlorinated biphenyl waste, together with a statement
    of whether and how such changes would be consistent with international
    law, including the Basel Convention on the Control of Transboundary
    Movements of Hazardous Wastes and Their Disposal and the Protocol to the
    Convention on Long-Range Transboundary Air Pollution on Persistent
    Organic Pollutants.
        (d) Definitions.--In this section:
                (1) The term ``polychlorinated biphenyl waste'' means--
                        (A) polychlorinated biphenyls; and
                        (B) materials containing polychlorinated biphenyls;
            that are ready for disposal.
                (2) The term ``foreign-manufactured polychlorinated biphenyl
            waste'' means polychlorinated biphenyl waste that is owned by
            the Department of Defense and situated outside of the United
            States and that consists of--
                        (A) polychlorinated biphenyls; or
                        (B) materials containing polychlorinated biphenyls;
            that were manufactured outside of the United States.

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

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

    SEC. 326. SUBMARINE SOLID WASTE CONTROL.

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

        (b) Conforming Amendment.--Subsection (e)(3)(A) of that section is
    amended by striking out ``garbage that contains more than the minimum
    amount practicable of''.

    SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

        (a) Activities Under Program.--(1) Subject to paragraph (2),
    activities under the Arctic Military Environmental Cooperation Program
    of the Department of Defense shall include cooperative activities on
    environmental matters in the Arctic region with the military

    [[Page 112 STAT. 1966]]

    departments and agencies of other countries, including the Russian
    Federation.
        (2) Activities under the Arctic Military Environmental Cooperation
    Program may not include any activities for purposes for which funds for
    Cooperative Threat Reduction programs have been denied or are
    prohibited, including the purposes for which funds are prohibited by
    section 1503 of the National Defense Authorization Act for Fiscal Year
    1997 (Public Law 104-201; 110 Stat. 2732).
        (b) Prior Notice to Congress of Obligation of Funds.--The Secretary
    of Defense shall submit to the congressional defense committees a report
    at least 15 days before the obligation of any funds for the Arctic
    Military Environmental Cooperation Program. Each such report shall
    specify--
                (1) the amount of the proposed obligation;
                (2) the activities for which the Secretary plans to obligate
            such funds; and
                (3) the terms of the implementing agreement between the
            United States and the foreign government concerning the activity
            to be undertaken, including the financial and other
            responsibilities of each government.

        (c) Availability of Fiscal Year 1999 Funds.--(1) Of the amount
    authorized to be appropriated by section 301(5), $4,000,000 shall be
    available for carrying out the Arctic Military Environmental Cooperation
    Program.
        (2) Amounts available for the Arctic Military Environmental
    Cooperation Program under paragraph (1) may not be obligated or expended
    for that Program until 45 days after the date on which the Secretary of
    Defense submits to the congressional defense committees a plan for the
    Program under paragraph (3).
        (3) The plan for the Arctic Military Environmental Cooperation
    Program under this paragraph shall include the following:
                (A) A statement of the overall goals and objectives of the
            Program.
                (B) A statement of the proposed activities under the Program
            and the relationship of such activities to the national security
            interests of the United States.
                (C) An assessment of the compatibility of the activities set
            forth under subparagraph (B) with the purposes of the
            Cooperative Threat Reduction programs of the Department of
            Defense (including with any prohibitions and limitations
            applicable to such programs).
                (D) An estimate of the funding to be required and requested
            in future fiscal years for the activities set forth under
            subparagraph (B).
                (E) A proposed termination date for the Program.

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

        (a) Findings.--Congress makes the following findings:
                (1) There have been six significant oil spills in Puget
            Sound, Washington, in 1998, five at Puget Sound Naval Shipyard
            (including three from the U.S.S. Kitty Hawk, one from the U.S.S.
            Carl Vinson, and one from the U.S.S. Sacramento) and one at
            Naval Station Everett from the U.S.S. Paul F. Foster.
                (2) Navy personnel on board vessels, and not shipyard
            employees, were primarily responsible for a majority of these
            oil spills at Puget Sound Naval Shipyard.

    [[Page 112 STAT. 1967]]

                (3) Oil spills have the potential to damage the local
            environment, killing microscopic organisms, contributing to air
            pollution, harming plants and marine animals, and increasing
            overall pollution levels in Puget Sound.

        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of the Navy should take immediate action to significantly
    reduce the risk of vessel oil spills, including the minimization of fuel
    oil transfers, the assurance of proper training and qualifications of
    all Naval personnel in occupations that may contribute to or minimize
    the risk of shipboard oil spills, and the improvement of liaison with
    local authorities concerning oil spill prevention and response
    activities.

                    Subtitle D--Information Technology Issues

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

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

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

        ``(a) Additional Responsibilities of Chief Information Officer of
    Department of Defense.--In addition to the responsibilities provided for
    in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act
    of 1996 (40 U.S.C. 1425), the Chief Information Officer of the
    Department of Defense shall--
                ``(1) review and provide recommendations to the Secretary of
            Defense on Department of Defense budget requests for information
            technology and national security systems;
                ``(2) ensure the interoperability of information technology
            and national security systems throughout the Department of
            Defense;
                ``(3) ensure that information technology and national
            security systems standards that will apply throughout the
            Department of Defense are prescribed; and
                ``(4) provide for the elimination of duplicate information
            technology and national security systems within and between the
            military departments and Defense Agencies.

        ``(b) Additional Responsibilities of Chief Information Officer of
    Military Departments.--In addition to the responsibilities provided for
    in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act
    of 1996 (40 U.S.C. 1425), the Chief Information Officer of a military
    department, with respect to the military department concerned, shall--
                ``(1) review budget requests for all information technology
            and national security systems;
                ``(2) ensure that information technology and national
            security systems are in compliance with standards of the
            Government and the Department of Defense;
                ``(3) ensure that information technology and national
            security systems are interoperable with other relevant
            information technology and national security systems of the
            Government and the Department of Defense; and
                ``(4) coordinate with the Joint Staff with respect to
            information technology and national security systems.

    [[Page 112 STAT. 1968]]

        ``(c) Definitions.--In this section:
                ``(1) The term `Chief Information Officer' means the senior
            official designated by the Secretary of Defense or a Secretary
            of a military department pursuant to section 3506 of title 44.
                ``(2) The term `information technology' has the meaning
            given that term by section 5002 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1401).
                ``(3) The term `national security system' has the meaning
            given that term by section 5142 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1452).''.

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

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

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

    SEC. 332. <<NOTE: 10 USC 2451 note.>>  DEFENSE-WIDE ELECTRONIC MALL
                SYSTEM FOR SUPPLY PURCHASES.

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

        (d) Implementation.--Within 180 days after the date of the enactment
    of this Act, the Chief Information Officer shall develop and provide to
    the congressional defense committees--
                (1) an inventory of all existing and planned electronic mall
            systems in the Department of Defense; and
                (2) a schedule for ensuring that each such system is
            compliant with the requirements of subsection (b).

    [[Page 112 STAT. 1969]]

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

        (a) Funds for Completion of Year 2000 Conversion.--None of the funds
    authorized to be appropriated pursuant to this Act may (except as
    provided in subsection (b)) be obligated or expended on the development
    or modernization of any information technology or national security
    system of the Department of Defense in use by the Department of Defense
    (whether or not the system is a mission critical system) if the date-
    related data processing capability of that system does not meet
    certification level 1a, 1b, or 2 (as prescribed in the April 1997
    publication of the Department of Defense entitled ``Year 2000 Management
    Plan'').
        (b) Exception for Certain Information Technology and National
    Security Systems.--The limitation in subsection (a) does not apply to an
    obligation or expenditure for an information technology or national
    security system that is reported to the Office of the Secretary of
    Defense by October 1, 1998, in accordance with the preparation
    instructions for the May 1998 Department of Defense quarterly report on
    the status of year 2000 compliance, if--
                (1) the obligation or expenditure is directly related to
            ensuring that the reported system achieves year 2000 compliance;
                (2) the system is being developed and fielded to replace,
            before January 1, 2000, a noncompliant system or a system to be
            terminated in accordance with the May 1998 Department of Defense
            quarterly report on the status of year 2000 compliance; or
                (3) the obligation or expenditure is required for a
            particular change that is specifically required by law or that
            is specifically directed by the Secretary of Defense.

        (c) Unallocated Reductions of Funds Not To Apply to Mission Critical
    Systems.--Funds authorized to be appropriated pursuant to this Act for
    mission critical systems are not subject to any unallocated reduction of
    funds made by or otherwise applicable to funds authorized to be
    appropriated pursuant to this Act.
        (d) Current Services Operations Not Affected.--Subsection (a) does
    not prohibit the obligation or expenditure of funds for current services
    operations of information technology and national security systems.
        (e) Waiver Authority.--The Secretary of Defense may waive subsection
    (a) on a case-by-case basis with respect to an information technology or
    national security system if the Secretary provides the congressional
    defense committees with written notice of the waiver, including the
    reasons for the waiver and a timeline for the testing and certification
    of the system as year 2000 compliant.
        (f ) Required Report.--(1) Not later than December 1, 1998, the
    Secretary of Defense shall submit to the congressional defense
    committees a report describing--
                (A) an executable strategy to be used throughout the
            Department of Defense to test information technology and
            national security systems for year 2000 compliance (to include
            functional capability tests and military exercises);
                (B) the plans of the Department of Defense for ensuring that
            adequate resources (such as testing facilities, tools, and

    [[Page 112 STAT. 1970]]

            personnel) are available to ensure that all mission critical
            systems achieve year 2000 compliance; and
                (C) the criteria and process to be used to certify a system
            as year 2000 compliant.

        (2) The report shall also include--
                (A) an updated list of all mission critical systems; and
                (B) guidelines for developing contingency plans for the
            functioning of each information technology or national security
            system in the event of a year 2000 problem in any such system.

        (g) Capability Contingency Plans.--Not later than December 30, 1998,
    the Secretary of Defense shall have in place contingency plans to ensure
    continuity of operations for every critical mission or function of the
    Department of Defense that is dependent on an information technology or
    national security system.
        (h) Inspector General Evaluation.--The Inspector General of the
    Department of Defense shall selectively audit information technology and
    national security systems certified as year 2000 compliant to evaluate
    the ability of systems to successfully operate during the actual year
    2000, including the ability of the systems to access and transmit
    information from point of origin to point of termination.
        (i) Definitions.--For purposes of this section:
                (1) The term ``information technology'' has the meaning
            given that term in section 5002 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1401).
                (2) The term ``national security system'' has the meaning
            given that term in section 5142 of such Act (40 U.S.C. 1452).
                (3) The term ``development or modernization'' has the
            meaning given that term in paragraph E of section 180203 of the
            Department of Defense Financial Management Regulation (DOD
            7000.14-R), but does not include any matter covered by
            subparagraph 3 of that paragraph.
                (4) The term ``current services'' has the meaning given that
            term in paragraph C of section 180203 of the Department of
            Defense Financial Management Regulation (DOD 7000.14-R).
                (5) The term ``mission critical system'' means an
            information technology or national security system that is
            designated as mission critical in the May 1998 Department of
            Defense quarterly report on the status of year 2000 compliance.

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

        (a) Report on Evaluation Plan.--Not later than December 15, 1998,
    the Secretary of Defense shall submit to Congress a plan for the
    execution of a simulated year 2000 as part of military exercises
    described in subsection (c) in order to evaluate, in an operational
    environment, the extent to which information technology and national
    security systems involved in those exercises will successfully operate
    during the actual year 2000, including the ability of those systems to
    access and transmit information from point of origin to point of
    termination.
        (b) Evaluation of Compliance in Selected Exercises.--In conducting
    the military exercises described in subsection (c), the Secretary of
    Defense shall ensure that--
                (1) at least 25 of those exercises (referred to in this
            section as ``year 2000 simulation exercises'') are conducted so
            as to

    [[Page 112 STAT. 1971]]

            include a simulated year 2000 in accordance with the plan
            submitted under subsection (a);
                (2) at least two of those exercises are conducted by the
            commander of each unified or specified combatant command; and
                (3) all mission critical systems that are expected to be
            used if the Armed Forces are involved in a conflict in a major
            theater of war are tested in at least two exercises.

        (c) Covered Military Exercises.--A military exercise referred to in
    this section is a military exercise conducted by the Department of
    Defense, during the period beginning on January 1, 1999, and ending on
    September 30, 1999--
                (1) under the training exercises program known as the ``CJCS
            Exercise Program'';
                (2) at the Naval Strike and Air Warfare Center, the Army
            National Training Center, or the Air Force Air Warfare Center;
            or
                (3) as part of Naval Carrier Group fleet training or Marine
            Corps Expeditionary Unit training.

        (d) Alternative Testing Method.--In the case of an information
    technology or national security system for which a simulated year 2000
    test as part of a military exercise described in subsection (c) is not
    feasible or presents undue risk, the Secretary of Defense shall test the
    system using a functional end-to-end test or through a Defense Major
    Range and Test Facility Base. The Secretary shall include the plans for
    these tests in the plan required by subsection (a). Tests under this
    subsection are in addition to the 25 tests required by subsection (b).
        (e) Authority for Exclusion of Systems Not Capable of Performing
    Reliably in Year 2000 Simulation.--(1) In carrying out a year 2000
    simulation exercise, the Secretary of Defense may exclude a particular
    information technology or national security system from the year 2000
    simulation phase of the exercise if the Secretary determines that the
    system would be incapable of performing reliably during the year 2000
    simulation phase of the exercise. In such a case, the system excluded
    shall be replaced in accordance with the year 2000 contingency plan for
    the system.
        (2) If the Secretary of Defense excludes an information technology
    or national security system from the year 2000 simulation phase of an
    exercise as provided in paragraph (1), the Secretary shall notify
    Congress of that exclusion not later than two weeks before commencing
    that exercise. The notice shall include a list of each information
    technology or national security system excluded from the exercise, a
    description of how the exercise will use the year 2000 contingency plan
    for each such system, and a description of the effect that continued
    year 2000 noncompliance of each such system would have on military
    readiness.
        (3) An information technology or national security system with
    cryptological applications that is not capable of having its internal
    clock adjusted forward to a simulated later time is exempt from the year
    2000 simulation phase of an exercise under this section.
        (f ) Comptroller General Review.--Not later than January 30, 1999,
    the Comptroller General shall review the report and plan submitted under
    subsection (a) and submit to Congress a briefing evaluating the
    methodology to be used under the plan to simulate the year 2000 and
    describing the potential information that will be collected as a result
    of implementation of the plan,

    [[Page 112 STAT. 1972]]

    the adequacy of the planned tests, and the impact that the plan will
    have on military readiness.
        (g) Definitions.--For the purposes of this section:
                (1) The term ``information technology'' has the meaning
            given that term in section 5002 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1401).
                (2) The term ``national security system'' has the meaning
            given that term in section 5142 of such Act (40 U.S.C. 1452).
                (3) The term ``mission critical system'' means an
            information technology or national security system that is
            designated as mission critical in the May 1998 Department of
            Defense quarterly report on the status of year 2000 compliance.

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

        (a) Report Required.--Not later than March 31, 1999, the Secretary
    of Defense and the Director of Central Intelligence shall jointly submit
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report on the plans
    of the Department of Defense and the intelligence community for ensuring
    the continuity of performance of essential operations that are at risk
    of failure because of information technology and national security
    systems that are not year 2000 compliant.
        (b) Content.--The report shall contain, at a minimum, the following:
                (1) A prioritization of mission critical systems to ensure
            that the most critical systems have the highest priority for
            efforts to reprogram information technology and national
            security systems to be year 2000 compliant.
                (2) A discussion of the private and other public information
            and support systems relied on by the national security
            community, including the intelligence community, and the efforts
            under way to ensure that those systems are year 2000 compliant.
                (3) The efforts under way to repair the underlying operating
            systems and infrastructure.
                (4) The plans for comprehensive testing of Department of
            Defense systems, including simulated operational tests in
            mission areas.
                (5) A comprehensive contingency plan, for the entire
            national security community, which provides for resolving
            emergencies resulting from a system that is not year 2000
            compliant and includes provision for the creation of crisis
            action teams for use in resolving such emergencies.
                (6) A discussion of the efforts undertaken to ensure the
            continued reliability of service on the systems used by the
            President and other leaders of the United States for
            communicating with the leaders of other nations.
                (7) A discussion of the vulnerability of allied armed forces
            to the failure of systems that are not, or have critical
            components that are not, year 2000 compliant, together with an
            assessment of the potential problems for interoperability among
            the Armed Forces of the United States and allied armed forces
            because of the potential for failure of such systems.

    [[Page 112 STAT. 1973]]

                (8) An estimate of the total cost of making information
            technology and national security systems of the Department of
            Defense and the intelligence community year 2000 compliant.
                (9) The countries that have critical computer-based systems
            any disruption of which, due to not being year 2000 compliant,
            would cause a significant potential national security risk to
            the United States.
                (10) A discussion of the cooperative arrangements between
            the United States and other nations to assist those nations in
            identifying and correcting (to the extent necessary to meet
            national security interests of the United States) any problems
            in their communications and strategic systems, or other systems
            identified by the Secretary of Defense, that make the systems
            not year 2000 compliant.
                (11) A discussion of the threat posed to the national
            security interests of the United States from any potential
            failure of strategic systems of foreign countries that are not
            year 2000 compliant.

        (c) International Cooperative Arrangements.--The Secretary of
    Defense, with the concurrence of the Secretary of State, may enter into
    a cooperative arrangement with a representative of any foreign
    government to provide for the United States to assist the foreign
    government in identifying and correcting (to the extent necessary to
    meet national security interests of the United States) any problems in
    communications, strategic, or other systems of that foreign government
    that render the systems not year 2000 compliant.
        (d) Definitions.--In this section:
                (1) The term ``year 2000 compliant'', with respect to an
            information technology or national security system of the United
            States or a computer-based system of a foreign government, means
            that the system correctly recognizes dates in years after 1999
            as being dates after 1999 for the purposes of system functions
            for which the correct date is relevant to the performance of the
            functions, consistent with certification level 1a, 1b, or 2 (as
            prescribed in the April 1997 publication of the Department of
            Defense entitled ``Year 2000 Management Plan'').
                (2) The term ``information technology'' has the meaning
            given that term by section 5002 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1401).
                (3) The term ``national security system'' has the meaning
            given that term by section 5142 of the Clinger-Cohen Act of 1996
            (40 U.S.C. 1452).

             Subtitle E--Defense Infrastructure Support Improvement

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

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

    [[Page 112 STAT. 1974]]

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

        (a) In General.--Section 2461 of title 10, United States Code, is
    amended--
                (1) by redesignating subsections (c) and (g) as subsections
            (g) and (h), respectively, and transferring subsection (g), as
            so redesignated, to appear after subsection (f ); and
                (2) by striking out subsections (a) and (b) and inserting in
            lieu thereof the following new subsections:

        ``(a) Reporting and Analysis Requirements as Precondition to Change
    in Performance.--A commercial or industrial type function of the
    Department of Defense that, as of October 1, 1980, was being performed
    by Department of Defense civilian employees may not be changed to
    performance by the private sector until the Secretary of Defense fully
    complies with the reporting and analysis requirements specified in
    subsections (b) and (c).
        ``(b) Notification and Elements of Analysis.--(1) Before commencing
    to analyze a commercial or industrial type function described in
    subsection (a) for possible change to performance by the private sector,
    the Secretary of Defense shall submit to Congress a report containing
    the following:
                ``(A) The function to be analyzed for possible change.
                ``(B) The location at which the function is performed by
            Department of Defense civilian employees.
                ``(C) The number of civilian employee positions potentially
            affected.
                ``(D) The anticipated length and cost of the analysis.
                ``(E) A certification that a proposed performance of the
            commercial or industrial type function by persons who are not
            civilian employees of the Department of Defense is not a result
            of a decision by an official of a military department or Defense
            Agency to impose predetermined constraints or limitations on
            such employees in terms of man years, end strengths, full-time
            equivalent positions, or maximum number of employees.

        ``(2) The duty to prepare a report under paragraph (1) may be
    delegated. A report prepared below the major command or claimant level
    of a military department, or below the equivalent level in a Defense
    Agency, pursuant to any such delegation shall be reviewed at the major
    command, claimant level, or equivalent level, as the case may be, before
    submission to Congress.
        ``(3) An analysis of a commercial or industrial type function for
    possible change to performance by the private sector shall include the
    following:
                ``(A) An examination of the cost of performance of the
            function by Department of Defense civilian employees and by one
            or more private contractors to demonstrate whether change to
            performance by the private sector will result in savings to the
            Government over the life of the contract, including in the
            examination the following:
                        ``(i) The cost to the Government, estimated by the
                    Secretary of Defense (based on offers received), for
                    performance of the function by the private sector.
                        ``(ii) The estimated cost to the Government of
                    Department of Defense civilian employees performing the
                    function.

    [[Page 112 STAT. 1975]]

                        ``(iii) In addition to the costs referred to in
                    clause (i), an estimate of all other costs and
                    expenditures that the Government would incur because of
                    the award of such a contract.
                ``(B) An examination of the potential economic effect of
            performance of the function by the private sector on the
            following:
                        ``(i) Employees of the Department of Defense who
                    would be affected by such a change in performance.
                        ``(ii) The local community and the Government, if
                    more than 75 employees of the Department of Defense
                    perform the function.
                ``(C) An examination of the effect of performance of the
            function by the private sector on the military mission
            associated with the performance of the function.

        ``(4)(A) A representative individual or entity at a facility where a
    commercial or industrial type function is analyzed for possible change
    in performance may submit to the Secretary of Defense an objection to
    the analysis on the grounds that the report required by paragraph (1)
    has not been submitted or that the certification required by paragraph
    (1)(E) is not included in the report submitted as a condition for the
    analysis. The objection shall be in writing and shall be submitted
    within 90 days after the following date:
                ``(i) In the case of a failure to submit the report when
            required, the date on which the representative individual or an
            official of the representative entity authorized to pose the
            objection first knew or should have known of that failure.
                ``(ii) In the case of a failure to include the certification
            in a submitted report, the date on which the report was
            submitted to Congress.

        ``(B) If the Secretary determines that the report required by
    paragraph (1) was not submitted or that the required certification was
    not included in the submitted report, the commercial or industrial type
    function covered by the analysis to which objected may not be the
    subject of a solicitation of offers for, or award of, a contract until,
    respectively, the report is submitted or a report containing the
    certification in full compliance with the certification requirement is
    submitted.
        ``(c) Notification of Decision.--(1) If, as a result of the
    completion of the examinations under subsection (b)(3), a decision is
    made to change the commercial or industrial type function that was the
    subject of the analysis to performance by the private sector, the
    Secretary of Defense shall submit to Congress a report describing that
    decision. The report shall contain the following:
                ``(A) An indication that the examinations required under
            subsection (b)(3) have been completed.
                ``(B) The Secretary's certification that the Government
            calculation of the cost of performance of the function by
            Department of Defense civilian employees is based on an estimate
            of the most cost effective manner for performance of the
            function by Department of Defense civilian employees.
                ``(C) The Secretary's certification that the examination
            required by subsection (b)(3)(A) as part of the analysis
            demonstrates that the performance of the function by the private
            sector will result in savings to the Government over the life of
            the contract.

    [[Page 112 STAT. 1976]]

                ``(D) The Secretary's certification that the entire analysis
            is available for examination.
                ``(E) A schedule for completing the change to performance of
            the function by the private sector.

        ``(2) The change of the function to contractor performance may not
    begin until after the submission of the report required by this
    subsection.''.
        (b) Definition of Small Function for Waiver Purposes.--Subsection
    (d) of section 2461 of title 10, United States Code, is amended by
    striking out ``20'' and inserting in lieu thereof ``50''.
        (c) Conforming Amendments.--(1) Subsections (d) and (e) of section
    2461 of title 10, United States Code, are amended by inserting ``and
    subsection (g)'' after ``Subsections (a) through (c)''.
        (2) Subsections (e)(2) and (f )(1) of such section are amended by
    striking out ``converted'' and inserting in lieu thereof ``changed''.
        (3) Subsection (f )(2) of such section is amended by striking out
    ``conversion'' and inserting in lieu thereof ``change''.
        (d) Effective <<NOTE: 10 USC 2461 note.>>  Date.--The amendments
    made by this section shall take effect on the date of the enactment of
    this Act, but the amendments shall not apply with respect to a
    conversion of a function of the Department of Defense to performance by
    a private contractor concerning which the Secretary of Defense provided
    to Congress, before the date of the enactment of this Act, a
    notification under paragraph (1) of section 2461(a) of title 10, United
    States Code, as in effect on the day before the date of the enactment of
    this Act.

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

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

        (b) Applicability.--Subsection <<NOTE: 10 USC 2464 note.>>  (c) of
    section 2464 of title 10, United States Code (as added by subsection
    (a)), shall apply with respect to determinations made after the date of
    the enactment of this Act.

    [[Page 112 STAT. 1977]]

    SEC. 344. <<NOTE: 10 USC 113 note.>>  OVERSIGHT OF DEVELOPMENT AND
                IMPLEMENTATION OF AUTOMATED IDENTIFICATION TECHNOLOGY.

        (a) Definitions.--In this section:
                (1) The term ``automated identification technology program''
            means a program in the Department of Defense, including any
            pilot program, employing one or more of the following
            technologies:
                        (A) Magnetic stripe.
                        (B) Bar codes, both linear and two-dimensional
                    (including matrix symbologies).
                        (C) Smart Card.
                        (D) Optical memory.
                        (E) Personal computer memory card international
                    association carriers.
                        (F) Any other established or emerging automated
                    identification technology, including biometrics and
                    radio frequency identification.
                (2) The term ``Smart Card'' means a credit card size device
            that contains one or more integrated circuits.

        (b) Establishment of Automated Identification Technology Office.--
    (1) The Secretary of Defense shall establish an Automated Identification
    Technology Office within the Department of Defense that shall be
    responsible for--
                (A) overseeing the development and implementation of all
            automated identification technology programs in the Department;
            and
                (B) coordinating automated identification technology
            programs with the Joint Staff, the Secretaries of the military
            departments, and the directors of the Defense Agencies.

        (2) After the date of the enactment of this Act, funds appropriated
    for the Department of Defense may not be obligated for an automated
    identification technology program unless the program has been reviewed
    and approved by the Automated Identification Technology Office. Pending
    the establishment of the Automated Identification Technology Office, the
    review and approval of a program by the Smart Card Technology Office of
    the Defense Human Resources Field Activity of the Department of Defense
    shall be sufficient to satisfy the requirements of this paragraph even
    if the approval was given before the date of the enactment of this Act.
        (3) As part of its oversight responsibilities, the Automated
    Identification Technology Office shall establish standards designed--
                (A) to ensure the compatibility and interoperability of
            automated identification technology programs in the Department
            of Defense; and
                (B) to identify and terminate redundant, infeasible, or
            uneconomical automated identification technology programs.

        (c) Funding for Increased Use of Smart Cards.--(1) Of the funds
    available for the Navy for fiscal year 1999 for operation and
    maintenance, the Secretary of the Navy shall allocate sufficient
    amounts, up to $25,000,000, for the purpose of making significant
    progress toward ensuring that Smart Cards with a multi-application,
    multi-technology automated reading capability are issued and used
    throughout the Navy and the Marine Corps for purposes for which Smart
    Cards are suitable.

    [[Page 112 STAT. 1978]]

        (2) Not later than June 30, 1999, the Secretary of the Navy shall
    equip with Smart Card technology at least one carrier battle group, one
    carrier air wing, and one amphibious readiness group (including the
    Marine Corps units embarked on the vessels of such battle and readiness
    groups) in each of the United States Atlantic Command and the United
    States Pacific Command.
        (3) None of the funds appropriated pursuant to any authorization of
    appropriations in this Act may be expended after June 30, 1999, for the
    procurement of the Joint Uniformed Services Identification card for
    members of the Navy or the Marine Corps or for the issuance of such card
    to such members, until the Secretary of the Navy certifies in writing to
    the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives that the Secretary has
    completed the issuance of Smart Cards in accordance with paragraph (2).
        (d) Defense-Wide Plan.--Not later than March 31, 1999, the Secretary
    of Defense shall submit to the congressional defense committees a plan
    for the use of Smart Card technology by each military department. The
    Secretary shall include in the plan an estimate of the costs of the
    plan, the savings to be derived from carrying out the plan, and a
    description of the ways in which the Department of Defense will review
    and revise business practices to take advantage of Smart Card
    technology.

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

        (a) Definitions.--In this section:
                (1) The term ``contractor-operated civil engineering supply
            store'' means a Government-owned facility that, as of the date
            of the enactment of this Act, is operated by a contractor under
            the contractor-operated civil engineering supply store program
            of the Department of the Air Force (known as the ``COCESS
            program'') for the purpose of--
                        (A) maintaining inventories of civil engineering
                    supplies on behalf of a military department; and
                        (B) furnishing such supplies to the department as
                    needed.
                (2) The term ``civil engineering supplies'' means parts and
            supplies needed for the repair and maintenance of military
            installations.

        (b) Findings.--Congress finds the following:
                (1) In 1970, the Strategic Air Command of the Air Force
            began to use contractor-operated civil engineering supply stores
            to improve the efficiency and effectiveness of materials
            management and relieve the Air Force from having to maintain
            large inventories of civil engineering supplies.
                (2) Contractor-operated civil engineering supply stores are
            designed to support the civil engineering and public works
            efforts of the Armed Forces through the provision of quality
            civil engineering supplies at competitive prices and within a
            reasonable period of time.
                (3) Through the use of a contractor-operated civil
            engineering supply store, a guaranteed inventory level of civil
            engineering supplies is maintained at a military installation,
            which ensures that urgently needed civil engineering supplies
            are available on site.

    [[Page 112 STAT. 1979]]

                (4) The contractor operating the contractor-operated civil
            engineering supply store is an independent business organization
            whose customer is a military department and the Armed Forces and
            who is subject to all the rules of private business and the
            regulations of the Government.
                (5) The use of contractor-operated civil engineering supply
            stores ensures the best price and best buy for the Government.
                (6) Ninety-five percent of the cost savings realized through
            the use of contractor-operated civil engineering supply stores
            is due to savings in the cost of actually procuring supplies.
                (7) In the past 30 years, private contractors have never
            lost a cost comparison conducted pursuant to the criteria set
            forth in Office of Management and Budget Circular A-76 for the
            provision of civil engineering supplies to the Government.

        (c) Conditions on Multi-Function Contracts.--A civil engineering
    supplies function that is performed, as of the date of the enactment of
    this Act, by a contractor-operated civil engineering supply store may
    not be combined with another supply function or any service function,
    including any base operating support function, for purposes of
    competition or contracting, until 60 days after the date on which the
    Secretary of Defense submits to Congress a report--
                (1) notifying Congress of the proposed combined competition
            or contract; and
                (2) explaining why a combined competition or contract is the
            best method by which to achieve cost savings and efficiencies to
            the Government.

        (d) GAO Reviews.--Not later than 50 days after the date on which the
    Secretary of Defense submits a report to Congress under subsection (c),
    the Comptroller General shall review the report and submit to Congress a
    briefing regarding whether the cost savings and efficiencies identified
    in the report are achievable.
        (e) Relationship to Other Laws.--If a civil engineering supplies
    function covered by subsection (c) is proposed for combination with a
    supply or service function that is subject to the study and reporting
    requirements of section 2461 of title 10, United States Code, the
    Secretary of Defense may include the report required under subsection
    (c) as part of the report under such section.

    SEC. 346. <<NOTE: 10 USC 2464 note.>>  CONDITIONS ON EXPANSION OF
                FUNCTIONS PERFORMED UNDER PRIME VENDOR CONTRACTS FOR DEPOT-
                LEVEL MAINTENANCE AND REPAIR.

        (a) Conditions on Expanded Use.--The Secretary of Defense or the
    Secretary of a military department, as the case may be, may not enter
    into a prime vendor contract for depot-level maintenance and repair of a
    weapon system or other military equipment described in section
    2464(a)(3) of title 10, United States Code, before the end of the 30-day
    period beginning on the date on which the Secretary submits to Congress
    a report, specific to the proposed contract, that--
                (1) describes the competitive procedures to be used to award
            the prime vendor contract; and
                (2) contains an analysis of costs and benefits that
            demonstrates that use of the prime vendor contract will result
            in savings to the Government over the life of the contract.

        (b) Definitions.--In this section:

    [[Page 112 STAT. 1980]]

                (1) The term ``prime vendor contract'' means an innovative
            contract that gives a defense contractor the responsibility to
            manage, store, and distribute inventory, manage and provide
            services, or manage and perform research, on behalf of the
            Department of Defense on a frequent, regular basis, for users
            within the Department on request. The term includes contracts
            commonly referred to as prime vendor support contracts, flexible
            sustainment contracts, and direct vendor delivery contracts.
                (2) The term ``depot-level maintenance and repair'' has the
            meaning given such term in section 2460 of title 10, United
            States Code.

        (c) Relationship to Other Laws.--Nothing in this section shall be
    construed to exempt a prime vendor contract from the requirements of
    section 2461 of title 10, United States Code, or any other provision of
    chapter 146 of such title.

    SEC. 347. <<NOTE: 10 USC 2458 note.>>  BEST COMMERCIAL INVENTORY
                PRACTICES FOR MANAGEMENT OF SECONDARY SUPPLY ITEMS.

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

    SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

        Not <<NOTE: Reports.>>  later than March 31, 1999, the Comptroller
    General shall submit to the congressional defense committees a report
    concerning--
                (1) the effect that the quadrennial defense review's
            proposed personnel reductions in the Army Materiel Command will
            have on workload and readiness if implemented; and

    [[Page 112 STAT. 1981]]

                (2) the projected cost savings from such reductions and the
            manner in which such savings are expected to be achieved.

    SEC. 349. <<NOTE: 10 USC 2458 note.<plus-minus>>>  INVENTORY MANAGEMENT
                OF IN-TRANSIT ITEMS.

        (a) Requirement for Plan.--Not later than March 1, 1999, the
    Secretary of Defense shall submit to Congress a comprehensive plan to
    ensure visibility over all in-transit end items and secondary items.
        (b) End Items.--The plan required by subsection (a) shall address
    the specific mechanisms to be used to enable the Department of Defense
    to identify at any time the quantity and location of all end items.
        (c) Secondary Items.--The plan required by subsection (a) shall
    address the following problems with Department of Defense management of
    inventories of in-transit secondary items:
                (1) The vulnerability of in-transit secondary items to loss
            through fraud, waste, and abuse.
                (2) Loss of oversight of in-transit secondary items,
            including any loss of oversight when items are being transported
            by commercial carriers.
                (3) Loss of accountability for in-transit secondary items
            due to either a delay of delivery of the items or a lack of
            notification of a delivery of the items.

        (d) Content of Plan.--The plan shall include for subsection (b) and
    for each of the problems described in subsection (c) the following
    information:
                (1) The actions to be taken by the Department.
                (2) Statements of objectives.
                (3) Performance measures and schedules.
                (4) An identification of any resources necessary for
            implementing the required actions, together with an estimate of
            the annual costs.

        (e) GAO Reviews.--(1) Not later than 60 days after the date on which
    the Secretary of Defense submits the plan to Congress, the Comptroller
    General shall review the plan and submit to Congress any comments that
    the Comptroller General considers appropriate regarding the plan.
        (2) The Comptroller General shall monitor any implementation of the
    plan and, not later than 1 year after the date referred to in paragraph
    (1), submit to Congress an assessment of the extent to which the plan
    has been implemented.

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

        (a) Review Required.--The Secretary of Defense shall provide for a
    review of the functions of the Defense Automated Printing Service in
    accordance with this section and shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives the matters required under subsection (f ) not
    later than March 31, 1999.
        (b) Performance by Independent Entity.--The Secretary of Defense
    shall select the General Accounting Office, an experienced entity in the
    private sector, or any other entity outside the Department of Defense to
    perform the review under this section. The Comptroller General shall
    perform the review if the Secretary selects the Comptroller General to
    do so.
        (c) Consultation.--Regardless of the entity selected by the
    Secretary under subsection (b) to perform the review, the entity

    [[Page 112 STAT. 1982]]

    shall perform the review in consultation with persons in the private
    sector who have expertise and experience in performing in the private
    sector functions similar to the functions performed by the Defense
    Automated Printing Service. If such a person obtains any privileged
    information (as defined by the Secretary of Defense) as a result of
    participating in the review, the person may not receive a contract,
    either through the Department of Defense or the Government Printing
    Office, to provide services for the Department of Defense similar to the
    functions performed by the Defense Automated Printing Service for a one-
    year period beginning on the date the report is submitted to the
    Secretary of Defense under subsection (e).
        (d) Elements of Review.--In performing the review under this
    section, the entity selected under subsection (b) shall specifically
    address the following:
                (1) The functions performed by the Defense Automated
            Printing Service.
                (2) The functions of the Defense Automated Printing Service
            that are inherently national security functions and, as such,
            need to be performed within the Department of Defense.
                (3) The functions of the Defense Automated Printing Service
            that are appropriate for transfer to another appropriate entity
            to perform, including a private sector entity.
                (4) The appropriate management structure of the Defense
            Automated Printing Service, the effectiveness of the current
            structure of the Defense Automated Printing Service in
            supporting current and future customer requirements, and any
            plans to address any deficiencies in supporting such
            requirements.
                (5) The current and future requirements of customers of the
            Defense Automated Printing Service.
                (6) The best business practices that are used by the Defense
            Automated Printing Service and other best business practices
            that could be used by the Defense Automated Printing Service.
                (7) Options for maximizing the Defense Automated Printing
            Service structure and services to provide the most cost
            effective service to its customers.

        (e) Report on Results of Review.--The entity performing the review
    under this section shall submit to the Secretary of Defense a report
    that sets forth the results of the review. In addition to specifically
    addressing the matters specified in subsection (d), the report shall
    also include the following:
                (1) A list of all sites where functions of the Defense
            Automated Printing Service are performed by the Defense
            Automated Printing Service.
                (2) The total number of the personnel employed by the
            Defense Automated Printing Service and the locations where the
            personnel perform the duties as employees.
                (3) For each site identified under paragraph (1), an
            assessment of each type of equipment at the site.
                (4) The types and explanation of the networking and
            technology integration linking all of the sites referred to in
            paragraph (1).
                (5) For each function of the Defense Automated Printing
            Service determined to be an inherently national security
            function under subsection (d)(2), a detailed justification for
            the determination.

    [[Page 112 STAT. 1983]]

                (6) For each function of the Defense Automated Printing
            Service determined to be appropriate for transfer under
            subsection (d)(3), a detailed assessment of the costs or savings
            associated with the transfer.

        (f ) Review and Comments of Secretary of Defense.--(1) After
    reviewing the report submitted under subsection (e), the Secretary of
    Defense shall submit the report to Congress. The Secretary shall include
    with the report the following:
                (1) The Secretary's comments and recommendations regarding
            the report.
                (2) A plan to transfer to another appropriate entity, or
            contract with another appropriate entity for, the performance of
            the functions of the Defense Automated Printing Service that--
                        (A) are not identified in the review as being
                    inherently national security functions; and
                        (B) the Secretary believes should be transferred or
                    contracted for performance outside the Department of
                    Defense in accordance with law.
                (3) Any recommended legislation and any administrative
            action that is necessary for transferring or contracting for the
            performance of the functions.

        (g) Extension of Requirement for Competitive Procurement of
    Services.--Section 351(a) of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), as amended by
    section 351(a) of the National Defense Authorization Act for Fiscal Year
    1997 (Public Law 104-201; 110 Stat. 2490) and section 387(a)(1) of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
    85; 111 Stat. 1713), is further amended by striking out ``1998'' and
    inserting in lieu thereof ``1999''.

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

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

    [[Page 112 STAT. 1984]]

       Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

        (a) Days of Eligibility for Ready Reserve Members With 50 Creditable
    Points.--Section 1063 of title 10, United States Code, is amended--
                (1) by striking out subsection (b); and
                (2) in subsection (a)--
                        (A) by striking out ``(1)'';
                        (B) by striking out ``12 days of eligibility'' and
                    inserting in lieu thereof ``24 days of eligibility'';
                    and
                        (C) by striking out ``(2) Paragraph (1)'' and
                    inserting in lieu thereof ``(b) Effect of Compensation
                    or Type of Duty.--Subsection (a)''.

        (b) Days of Eligibility for Reserve Retirees Under Age 60.--Section
    1064 of such title is amended by striking out ``for 12 days each
    calendar year'' and inserting in lieu thereof ``for 24 days each
    calendar year''.

    [[Page 112 STAT. 1985]]

        (c) Eligibility of Members of National Guard Serving in Federally
    Declared Disaster.--Chapter 54 of such title is amended by inserting
    after section 1063 the following new section:

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

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

        (d) Section Headings.--(1) The heading of section 1063 of such title
    is amended to read as follows:

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

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

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

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

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

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

        (a) Limitation.--Section 2482(b)(1) of title 10, United States Code,
    is amended by adding at the end the following: ``However, the Defense
    Commissary Agency may not pay for any such service provided by the
    United States Transportation Command any amount that exceeds the price
    at which the service could be procured through full and open
    competition, as such term is defined

    [[Page 112 STAT. 1986]]

    in section 4(6) of the Office of Federal Procurement Policy Act (41
    U.S.C. 403(6)).''.
        (b) Effective <<NOTE: 10 USC 2482 note.>>  Date.--The amendment made
    by subsection (a) shall apply with respect to services provided or
    obtained on or after the date of the enactment of this Act.

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

        Section 2486 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(g) Collection of Dishonored Checks.--(1) The Secretary of Defense
    may impose a charge for the collection of a check accepted at a
    commissary store that is not honored by the financial institution on
    which the check is drawn. The imposition and amounts of charges shall be
    consistent with practices of commercial grocery stores regarding
    dishonored checks.
        ``(2)(A) The following persons are liable to the United States for
    the amount of a check referred to in paragraph (1) that is returned
    unpaid to the United States, together with any charge imposed under that
    paragraph:
                ``(i) The person who presented the check.
                ``(ii) Any person whose status and relationship to the
            person who presented the check provide the basis for that
            person's eligibility to make purchases at a commissary store.

        ``(B) Any amount for which a person is liable under subparagraph (A)
    may be collected by deducting and withholding such amount from any
    amounts payable to that person by the United States.
        ``(3) Amounts collected as charges imposed under paragraph (1) shall
    be credited to the commissary trust revolving fund.
        ``(4) Appropriated funds may be used to pay any costs incurred in
    the collection of checks and charges referred to in paragraph (1). An
    appropriation account charged a cost under the preceding sentence shall
    be reimbursed the amount of that cost out of funds in the commissary
    trust revolving fund.
        ``(5) In this subsection, the term `commissary trust revolving fund'
    means the trust revolving fund maintained by the Department of Defense
    for surcharge collections and proceeds of sales of commissary stores.''.

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

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

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

        ``(a) General Authority.--(1) The Secretary of Defense may establish
    restrictions on the ability of eligible patrons of commissary and
    exchange stores located outside of the United States to purchase certain
    merchandise items (or the quantity of certain merchandise items)
    otherwise included within an authorized merchandise category if the
    Secretary determines that such restrictions are necessary to prevent the
    resale of such merchandise in violation of treaty obligations of the
    United States or host nation laws (to the extent such laws are not
    inconsistent with United States laws).

    [[Page 112 STAT. 1987]]

        ``(2) In establishing a quantity or other restriction, the
    Secretary--
                ``(A) may not discriminate among the various categories of
            eligible patrons of the commissary and exchange system; and
                ``(B) shall ensure that the restriction is consistent with
            the purpose of the overseas commissary and exchange system to
            provide reasonable access for eligible patrons to purchase
            merchandise items made in the United States.

        ``(b) Controlled Item Lists.--For each location outside the United
    States that is served by the commissary system or the exchange system,
    the Secretary of Defense may maintain a list of controlled merchandise
    items, except that, after the date of the enactment of this section, the
    Secretary may not change the list to add a merchandise item unless,
    before making the change, the Secretary submits to Congress a notice of
    the proposed addition and the reasons for the addition of the item.
        ``(c) Annual Report.--The Secretary of Defense shall submit to
    Congress an annual report describing the host nation laws and the treaty
    obligations of the United States, and the conditions within host
    nations, that necessitate the use of quantity or other restrictions on
    purchases in commissary and exchange stores located outside the United
    States.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

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

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

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

    SEC. 367. <<NOTE: 10 USC 2482 note.<plus-minus>>>  PROHIBITION ON
                CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF DEPARTMENT
                OF DEFENSE RETAIL SYSTEMS.

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

    [[Page 112 STAT. 1988]]

    may not be implemented unless implementation of the recommendation is
    specifically authorized by a law enacted after the date of the enactment
    of this Act.

    SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

        (a) Use <<NOTE: Regulations.>>  of FTS 2000/2001.--The Secretary of
    Defense shall prescribe in regulations authority for the Defense
    Commissary Agency to meet its telecommunication requirements by
    obtaining telecommunication services and related items under the FTS
    2000/2001 contract.

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

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

        (a) Patron <<NOTE: Contracts.>>  Survey.--The Secretary of Defense
    shall enter into a contract with a commercial survey firm to conduct a
    survey of eligible patrons of the commissary store system to determine
    patron satisfaction with the merchandise sold in commissary stores,
    including patron views on product quality, prices, assortment, and such
    other matters as the Secretary considers appropriate.

        (b) Survey Location.--The survey shall be conducted at not less than
    three military installations in the United States of each of the Armed
    Forces (other than the Coast Guard).
        (c) Report on Results.--The survey shall be completed, and the
    results submitted to the Secretary of Defense, the Committee on Armed
    Services of the Senate, and the Committee on National Security of the
    House of Representatives, not later than February 28, 1999.

                            Subtitle G--Other Matters

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

        (a) Dependents of Members Residing in Certain Areas.--Subsection (a)
    of section 2164 of title 10, United States Code, is amended--
                (1) by designating the first sentence as paragraph (1);
                (2) by designating the second sentence as paragraph (2); and
                (3) by adding at the end of paragraph (2) (as so designated)
            the following new sentence: ``If a member of the armed forces is
            assigned to a remote location or is assigned to an unaccompanied
            tour of duty, a dependent of the member who resides, on or off a
            military installation, in a territory, commonwealth, or
            possession of the United States, as authorized by the member's
            orders, may be enrolled in an educational program provided by
            the Secretary under this subsection.''.

    [[Page 112 STAT. 1989]]

        (b) Waiver of Five-Year Attendance Limitation.--Subsection (c)(2) of
    such section is amended by striking out subparagraph (B) and inserting
    in lieu thereof the following new subparagraph:
        ``(B) At the discretion of the Secretary, a dependent referred to in
    subparagraph (A) may be enrolled in the program for more than five
    consecutive school years if the dependent is otherwise qualified for
    enrollment, space is available in the program, and the Secretary will be
    reimbursed for the educational services provided. Any such extension
    shall cover only one school year at a time.''.
        (c) Customs Service Employee Dependents in Puerto Rico.--(1)
    Subsection (c)(1) of such section is amended--
                (A) by inserting ``(A)'' after ``(1)''; and
                (B) by adding at the end the following new subparagraph:

        ``(B) A dependent of a United States Customs Service employee who
    resides in Puerto Rico, but not on a military installation, may enroll
    in an educational program provided by the Secretary pursuant to
    subsection (a) in Puerto Rico in accordance with the same rules as apply
    to a dependent of a Federal employee residing in permanent living
    quarters on a military installation.''.
        (2) Subsection (c)(2) of such section is further amended by adding
    at the end the following new subparagraph:
        ``(D) Subparagraph (A) shall not apply to a dependent covered by
    paragraph (1)(B). No requirement under this paragraph for reimbursement
    for educational services provided for the dependent shall apply with
    respect to the dependent, except that the Secretary may require the
    United States Customs Service to reimburse the Secretary for the cost of
    the educational services provided for the dependent.''.
        (3) The <<NOTE: Applicability. 10 USC 2164 note.>>  amendments made
    by this subsection shall apply with respect to academic years beginning
    on or after the date of the enactment of this Act.

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

        (a) Continuation of Department of Defense Program for Fiscal Year
    1999.--Of the amount authorized to be appropriated pursuant to section
    301(5) for operation and maintenance for Defense-wide activities--
                (1) $30,000,000 shall be available only for the purpose of
            providing educational agencies assistance (as defined in
            subsection (d)(1)) to local educational agencies; and
                (2) $5,000,000 shall be available only for the purpose of
            making educational agencies payments (as defined in subsection
            (d)(2)) to local educational agencies.

        (b) Notification.--Not later than June 30, 1999, the Secretary of
    Defense shall--
                (1) notify each local educational agency that is eligible
            for educational agencies assistance for fiscal year 1999 of that
            agency's eligibility for such assistance and the amount of such
            assistance for which that agency is eligible; and
                (2) notify each local educational agency that is eligible
            for an educational agencies payment for fiscal year 1999 of that
            agency's eligibility for such payment and the amount of the
            payment for which that agency is eligible.

    [[Page 112 STAT. 1990]]

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

    SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

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

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

        ``(a) Required Readiness Reporting System.--The Secretary of Defense
    shall establish a comprehensive readiness reporting system for the
    Department of Defense. The readiness reporting system shall measure in
    an objective, accurate, and timely manner the capability of the armed
    forces to carry out--
                ``(1) the National Security Strategy prescribed by the
            President in the most recent annual national security strategy
            report under section 108 of the National Security Act of 1947
            (50 U.S.C. 404a);
                ``(2) the defense planning guidance provided by the
            Secretary of Defense pursuant to section 113(g) of this title;
            and
                ``(3) the National Military Strategy prescribed by the
            Chairman of the Joint Chiefs of Staff.

        ``(b) Readiness Reporting System Characteristics.--In establishing
    the readiness reporting system, the Secretary shall ensure--
                ``(1) that the readiness reporting system is applied
            uniformly throughout the Department of Defense;
                ``(2) that information in the readiness reporting system is
            continually updated, with any change in the overall readiness
            status of a unit, an element of the training establishment, or
            an element of defense infrastructure, that is required to be
            reported as part of the readiness reporting system, being
            reported within 24 hours of the event necessitating the change
            in readiness status; and
                ``(3) that sufficient resources are provided to establish
            and maintain the system so as to allow reporting of changes in
            readiness status as required by this section.

        ``(c) Capabilities.--The readiness reporting system shall measure
    such factors relating to readiness as the Secretary prescribes, except
    that the system shall include the capability to do each of the
    following:

    [[Page 112 STAT. 1991]]

                ``(1) Measure, on a monthly basis, the capability of units
            (both as elements of their respective armed force and as
            elements of joint forces) to conduct their assigned wartime
            missions.
                ``(2) Measure, on a quarterly basis, the capability of
            training establishments to provide trained and ready forces for
            wartime missions.
                ``(3) Measure, on a quarterly basis, the capability of
            defense installations and facilities and other elements of
            Department of Defense infrastructure, both in the United States
            and abroad, to provide appropriate support to forces in the
            conduct of their wartime missions.
                ``(4) Measure, on a monthly basis, critical warfighting
            deficiencies in unit capability.
                ``(5) Measure, on a quarterly basis, critical warfighting
            deficiencies in training establishments and defense
            infrastructure.
                ``(6) Measure, on a monthly basis, the level of current risk
            based upon the readiness reporting system relative to the
            capability of forces to carry out their wartime missions.

        ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) The
    Chairman of the Joint Chiefs of Staff shall--
                ``(A) on a quarterly basis, conduct a joint readiness
            review; and
                ``(B) on a monthly basis, review any changes that have been
            reported in readiness since the previous joint readiness review.

        ``(2) The Chairman shall incorporate into both the joint readiness
    review required under paragraph (1)(A) and the monthly review required
    under paragraph (1)(B) the current information derived from the
    readiness reporting system and shall assess the capability of the armed
    forces to execute their wartime missions based upon their posture at the
    time the review is conducted. The Chairman shall submit to the Secretary
    of Defense the results of each review under paragraph (1), including the
    deficiencies in readiness identified during that review.
        ``(e) Submission to Congressional Committees.--The Secretary shall
    each month submit to the Committee on Armed Services and the Committee
    on Appropriations of the Senate and the Committee on National Security
    and the Committee on Appropriations of the House of Representatives a
    report in writing containing the results of the most recent joint
    readiness review or monthly review conducted under subsection (d),
    including the current information derived from the readiness reporting
    system. Each such report shall be submitted in unclassified form and
    may, as the Secretary determines necessary, also be submitted in
    classified form.
        ``(f ) Regulations.--The Secretary shall prescribe regulations to
    carry out this section. In those regulations, the Secretary shall
    prescribe the units that are subject to reporting in the readiness
    reporting system, what type of equipment is subject to such reporting,
    and the elements of the training establishment and of defense
    infrastructure that are subject to such reporting.''.

    [[Page 112 STAT. 1992]]

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 116 the
    following new item:

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

        (b) Implementation.--The <<NOTE: 10 USC 117 note.>>  Secretary of
    Defense shall establish and implement the readiness reporting system
    required by section 117 of title 10, United States Code, as added by
    subsection (a), so as to ensure that the capabilities required by
    subsection (c) of that section are attained not later than January 15,
    2000.

        (c) Implementation <<NOTE: 10 USC 117 note.>>  Plan.--Not later than
    March 1, 1999, the Secretary of Defense shall submit to Congress a
    report setting forth the Secretary's plan for implementation of section
    117 of title 10, United States Code, as added by subsection (a).

        (d) Repeal <<NOTE: 10 USC 482 note.>>  of Quarterly Readiness Report
    Requirement.--(1) Effective January 15, 2000, or the date on which the
    first report of the Secretary of Defense is submitted under section
    117(e) of title 10, United States Code, as added by subsection (a),
    whichever is later, the Secretary of Defense shall cease to submit
    reports under section 482 of title 10, United States Code.

        (2) Effective June 1, 2001--
                (A) section 482 of title 10, United States Code, is
            repealed; and
                (B) the table of sections at the beginning of chapter 23 of
            such title is amended by striking out the item relating to that
            section.

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

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

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

        (a) Competitive Source Selection.--Section 113(b) of title 32,
    United States Code, is amended to read as follows:
        ``(b) Covered Activities.--(1) Except as provided in paragraph (2),
    financial assistance may be provided for the performance of an activity
    by the Army National Guard under subsection (a) only if--
                ``(A) the activity is carried out in the performance of a
            responsibility of the Secretary of the Army under paragraph (6),
            (10), or (11) of section 3013(b) of title 10; and
                ``(B) the Army National Guard was selected to perform the
            activity under competitive procedures that permit all qualified
            public-sector and private-sector sources to submit offers and be
            considered for selection to perform the activity on the basis of
            the offers.

        ``(2) Paragraph (1)(B) does not apply to an activity that, on the
    date of the enactment of this subsection, was performed for

    [[Page 112 STAT. 1993]]

    the Federal Government by employees of the Federal Government or
    employees of a State.''.
        (b) Prospective <<NOTE: 32 USC 113 note.>>  Applicability.--
    Subsection (b)(1)(B) of section 113 of title 32, United States Code (as
    added by subsection (a) of this section), does not apply to--
                (1) financial assistance provided under that section before
            October 1, 1998; or
                (2) financial assistance for an activity that, before May 9,
            1998, the Secretary of the Army identified in writing as being
            under consideration for supporting with financial assistance
            under that section.

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

        (a) Definition.--In this section, the term ``current demonstration
    program'' means the pilot program to improve the movement of household
    goods of members of the Armed Forces that is identified in the re-
    engineering pilot solicitation of the Military Traffic Management
    Command designated as DAMTO1-97-R-3001.
        (b) Completion of Current Demonstration Program.--The Secretary of
    Defense shall complete the current demonstration program to improve the
    quality of personal property shipments within the Department of Defense
    not later than October 1, 1999.
        (c) Evaluations of Current and Alternative Demonstrations.--(1) Not
    later than August 31, 1999, the Secretary of Defense shall submit to
    Congress a report evaluating the following:
                (A) Whether the current demonstration program, as
            implemented, meets the goals for the current demonstration
            program previously agreed upon between the Department of Defense
            and representatives of private sector entities involved in the
            transportation of household goods for members of the Armed
            Forces, as such goals are contained in the report of the
            Comptroller General designated as report ``NSIAD 97-49''.
                (B) Whether the demonstration program contained in the
            proposal prepared for the Secretary of Defense by private sector
            entities involved in the transportation of household goods for
            members of the Armed Forces as an alternative to the current
            demonstration program would, if implemented, be likely to meet
            the goals for the current demonstration program.

        (2) <<NOTE: Reports.>>  The Secretary shall also submit to Congress
    interim reports regarding the progress of the current demonstration
    program not later than January 15, 1999, and April 15, 1999.

        (d) Prohibition.--The Secretary of Defense may not exercise any
    option with respect to the current demonstration program that would have
    the effect of extending the current demonstration program after October
    1, 1999, or otherwise continue the current demonstration program after
    that date, until the end of the 30-day period beginning on the date on
    which the Secretary submits the report required under subsection (c)(1).

    SEC. 377. <<NOTE: 10 USC 113 note.>>  PILOT PROGRAM FOR ACCEPTANCE AND
                USE OF LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY
                AIRFIELDS BY CIVIL AIRCRAFT.

        (a) Pilot Program Authorized.--The Secretary of each military
    department may carry out a pilot program during fiscal years 1999 and
    2000 to demonstrate the use of landing fees as a source of funding for
    the operation and maintenance of airfields of that

    [[Page 112 STAT. 1994]]

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

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

        (a) Plan Required.--The Secretary of Defense shall develop a
    strategic plan for guiding and expanding distance learning initiatives
    within the Department of Defense. The plan shall provide for an
    expansion of such initiatives over five consecutive fiscal years
    beginning with fiscal year 2000.
        (b) Content of Plan.--The strategic plan shall contain, at a
    minimum, the following:
                (1) A statement of measurable goals and objectives and
            outcome-related performance indicators (consistent with section
            1115 of title 31, United States Code, relating to agency
            performance plans) for the development and execution of distance
            learning initiatives throughout the Department of Defense.
                (2) A detailed description of how distance learning
            initiatives are to be developed and managed within the
            Department of Defense.
                (3) An assessment of the estimated costs and the benefits
            associated with developing and maintaining an appropriate
            infrastructure for distance learning.
                (4) A statement of planned expenditures for the investments
            necessary to build and maintain that infrastructure.
                (5) A description of the mechanisms that are to be used to
            supervise the development and coordination of the distance
            learning initiatives of the Department of Defense.

        (c) Relationship to Existing Initiative.--In developing the
    strategic plan, the Secretary may take into account the ongoing
    collaborative effort among the Department of Defense, other Federal
    agencies, and private industry that is known as the Advanced
    Distribution Learning initiative. However, the Secretary shall ensure
    that the strategic plan is specifically focused on the training and
    education goals and objectives of the Department of Defense.
        (d) Submission to Congress.--The Secretary of Defense shall submit
    the strategic plan to Congress not later than March 1, 1999.

    [[Page 112 STAT. 1995]]

    SEC. 379. <<NOTE: 10 USC 2468 note.>>  PUBLIC AVAILABILITY OF OPERATING
                AGREEMENTS BETWEEN MILITARY INSTALLATIONS AND FINANCIAL
                INSTITUTIONS.

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

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

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

                           Subtitle B--Reserve Forces

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

                   Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                            Subtitle A--Active Forces

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

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

    SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

        (a) Revised End Strength Floors.--Subsection (b) of section 691 of
    title 10, United States Code, is amended--
                (1) in paragraph (1), by striking out ``495,000'' and
            inserting in lieu thereof ``480,000'';
                (2) in paragraph (2), by striking out ``390,802'' and
            inserting in lieu thereof ``372,696'';
                (3) in paragraph (3), by striking out ``174,000'' and
            inserting in lieu thereof ``172,200''; and

    [[Page 112 STAT. 1996]]

                (4) in paragraph (4), by striking out ``371,577'' and
            inserting in lieu thereof ``370,802''.

        (b) Revision to Flexibility Authority for the Army.--Subsection (e)
    of such section is amended by striking out ``1 percent or, in the case
    of the Army, by not more than 1.5 percent,'' and inserting in lieu
    thereof ``0.5 percent.''.
        (c) Effective <<NOTE: 10 USC 691 note.>>  Date.--The amendments made
    by this section shall take effect on October 1, 1998.

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

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

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

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

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

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

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

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

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

        (a) Fiscal Year Basis for Application of Limitation.--The first
    sentence of section 517(a) of title 10, United States Code, is amended--
                (1) by striking out ``a calendar year'' and inserting in
            lieu thereof ``a fiscal year''; and
                (2) by striking out ``January 1 of that year'' and inserting
            in lieu thereof ``the first day of that fiscal year''.

        (b) Effective <<NOTE: 10 USC 517 note.>>  Date.--The amendments made
    by subsection (a) shall take effect on October 1, 1999.

    [[Page 112 STAT. 1997]]

                           Subtitle B--Reserve Forces

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

        (a) In General.--The Armed Forces are authorized strengths for
    Selected Reserve personnel of the reserve components as of September 30,
    1999, as follows:
                (1) The Army National Guard of the United States, 357,223.
                (2) The Army Reserve, 208,003.
                (3) The Naval Reserve, 90,843.
                (4) The Marine Corps Reserve, 40,018.
                (5) The Air National Guard of the United States, 106,992.
                (6) The Air Force Reserve, 74,243.
                (7) The Coast Guard Reserve, 8,000.

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

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

    SEC. 412. <<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, 1999,
    the following number of Reserves to be serving on full-time active duty
    or full-time duty, in the case of members of the National Guard, for the
    purpose of organizing, administering, recruiting, instructing, or
    training the reserve components:
                (1) The Army National Guard of the United States, 21,986.
                (2) The Army Reserve, 12,807.
                (3) The Naval Reserve, 15,590.
                (4) The Marine Corps Reserve, 2,362.
                (5) The Air National Guard of the United States, 10,931.
                (6) The Air Force Reserve, 992.

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

        The minimum number of military technicians (dual status) as of the
    last day of fiscal year 1999 for the reserve components of the Army and
    the Air Force (notwithstanding section 129 of title 10, United States
    Code) shall be the following:
                (1) For the Army Reserve, 5,395.

    [[Page 112 STAT. 1998]]

                (2) For the Army National Guard of the United States,
            23,125.
                (3) For the Air Force Reserve, 9,761.
                (4) For the Air National Guard of the United States, 22,408.

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

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

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

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

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

        (c) Effective <<NOTE: 10 USC 12011 note.>>  Date.--The amendments
    made by this section shall take efffect on October 1, 1998.

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

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

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

                    and
                        (B) by striking out the items relating to the Dental
                    Corps, the Nurse Corps, and the Medical Service Corps;
                    and
                (2) by adding at the end the following:

        ``(4)(A) For the purposes of paragraph (1), the Medical Department
    staff corps referred to in the table are as follows:
                ``(i) The Medical Corps.
                ``(ii) The Dental Corps.
                ``(iii) The Nurse Corps.
                ``(iv) The Medical Service Corps.

        ``(B) Each of the Medical Department staff corps is authorized one
    rear admiral (lower half) within the strength authorization distributed
    to the Medical Department staff corps under paragraph (1). The Secretary
    of the Navy shall distribute the remainder of the strength authorization
    for the Medical Department staff corps under that paragraph among those
    staff corps as the Secretary determines appropriate to meet the needs of
    the Navy.''.

    [[Page 112 STAT. 1999]]

                   Subtitle C--Authorization of Appropriations

    SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

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

                      Subtitle B--Reserve Component Matters

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

                   Subtitle C--Military Education and Training

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

               Subtitle D--Decorations, Awards, and Commendations

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

    [[Page 112 STAT. 2000]]

    Sec. 536. Sense of Congress regarding the heroism, sacrifice, and
               service of former South Vietnamese commandos in connection
               with United States Armed Forces during the Vietnam conflict.
    Sec. 537. Prohibition on members of Armed Forces entering correctional
               facilities to present decorations to persons who have
               committed serious violent
               felonies.

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

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

                               Subtitle F--Reports

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

                            Subtitle G--Other Matters

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

                      Subtitle A--Officer Personnel Policy

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

        (a) Persons Not Considered by Promotion Boards Due to Administrative
    Error.--Subsection (a) of section 628 of title 10, United States Code,
    is amended--
                (1) by striking out paragraph (1) (and the subsection
            designation at the beginning of that paragraph) and inserting in
            lieu thereof the following:

        ``(a) Persons Not Considered by Promotion Boards Due to
    Administrative Error.--(1) If the Secretary of the military department
    concerned determines that because of administrative error a person who
    should have been considered for selection for

    [[Page 112 STAT. 2001]]

    promotion by a promotion board was not so considered, the Secretary
    shall convene a special selection board under this subsection to
    determine whether that person (whether or not then on active duty)
    should be recommended for promotion.'';
                (2) in paragraph (2), by striking out ``the officer as his
            record'' in the first sentence and inserting in lieu thereof
            ``the person whose name was referred to it for consideration as
            that record''; and
                (3) in paragraph (3), by striking out ``an officer in a
            grade'' and all that follows through ``the officer'' and
            inserting in lieu thereof ``a person whose name was referred to
            it for consideration for selection for appointment to a grade
            other than a general officer or flag officer grade, the
            person''.

        (b) Persons Considered by Promotion Boards in Unfair Manner.--
    Subsection (b) of such section is amended--
                (1) by striking out paragraph (1) and inserting in lieu
            thereof the following:

        ``(b) Persons Considered by Promotion Boards in Unfair Manner.--(1)
    If the Secretary of the military department concerned determines, in the
    case of a person who was considered for selection for promotion by a
    promotion board but was not selected, that there was material unfairness
    with respect to that person, the Secretary may convene a special
    selection board under this subsection to determine whether that person
    (whether or not then on active duty) should be recommended for
    promotion. In order to determine that there was material unfairness, the
    Secretary must determine that--
                ``(A) the action of the promotion board that considered the
            person was contrary to law or involved material error of fact or
            material administrative error; or
                ``(B) the board did not have before it for its consideration
            material information.'';
                (2) in paragraph (2), by striking out ``the officer as his
            record'' in the first sentence and inserting in lieu thereof
            ``the person whose name was referred to it for consideration as
            that record''; and
                (3) in paragraph (3)--
                        (A) by striking out ``an officer'' and inserting in
                    lieu thereof ``a person''; and
                        (B) by striking out ``the officer'' and inserting in
                    lieu thereof ``the person''.

        (c) Conforming Amendments.--(1) Subsection (c) of such section is
    amended--
                (A) by inserting ``Reports of Boards.--'' after ``(c)'';
                (B) by striking out ``officer'' both places it appears in
            paragraph (1) and inserting in lieu thereof ``person''; and
                (C) in paragraph (2), by adding the following new sentence
            at the end: ``However, in the case of a board convened under
            this section to consider a warrant officer or former warrant
            officer, the provisions of sections 576(d) and 576(f ) of this
            title (rather than the provisions of section 617(b) and 618 of
            this title) apply to the report and proceedings of the board in
            the same manner as they apply to the report and proceedings of a
            selection board convened under section 573 of this title.''.

        (2) Subsection (d)(1) of such section is amended--
                (A) by inserting ``Appointment of Persons Selected by
            Boards.--'' after ``(d)'';

    [[Page 112 STAT. 2002]]

                (B) by striking out ``an officer'' and inserting in lieu
            thereof ``a person'';
                (C) by striking out ``such officer'' and inserting in lieu
            thereof ``that person'';
                (D) by striking out ``the next higher grade'' the second
            place it appears and inserting in lieu thereof ``that grade'';
            and
                (E) by adding at the end the following: ``However, in the
            case of a board convened under this section to consider a
            warrant officer or former warrant officer, if the report of that
            board, as approved by the Secretary concerned, recommends that
            warrant officer or former warrant officer for promotion to the
            next higher grade, that person shall, as soon as practicable, be
            appointed to the next higher grade in accordance with provisions
            of section 578(c) of this title (rather than subsections (b),
            (c), and (d) of section 624 of this title).''.

        (3) Subsection (d)(2) of such section is amended--
                (A) by striking out ``An officer who is promoted'' and
            inserting in lieu thereof ``A person who is appointed'';
                (B) by striking out ``such promotion'' and inserting in lieu
            thereof ``that appointment''; and
                (C) by adding at the end the following new sentence: ``In
            the case of a person who is not on the active-duty list when
            appointed to the next higher grade, placement of that person on
            the active-duty list pursuant to the preceding sentence shall be
            only for purposes of determination of eligibility of that person
            for consideration for promotion by any subsequent special
            selection board under this section.''.

        (d) Applicability to Deceased Persons.--Subsection (e) of such
    section is amended to read as follows:
        ``(e) Deceased Persons.--If a person whose name is being considered
    for referral to a special selection board under this section dies before
    the completion of proceedings under this section with respect to that
    person, this section shall be applied to that person posthumously.''.
        (e) Recodification of Administrative Matters.--Such section is
    further amended by adding at the end the following:
        ``(f ) Convening of Boards.--A board convened under this section--
                ``(1) shall be convened under regulations prescribed by the
            Secretary of Defense;
                ``(2) shall be composed in accordance with section 612 of
            this title or, in the case of board to consider a warrant
            officer or former warrant officer, in accordance with section
            573 of this title and regulations prescribed by the Secretary of
            the military department concerned; and
                ``(3) shall be subject to the provisions of section 613 of
            this title.

        ``(g) Promotion Board Defined.--In this section, the term `promotion
    board' means a selection board convened by the Secretary of a military
    department under section 573(a) or 611(a) of this title.''.
        (f ) Ratification <<NOTE: 10 USC 628 note.>>  of Codified
    Practice.--The consideration by a special selection board convened under
    section 628 of title 10, United States Code, before the date of the
    enactment of this Act of a person who, at the time of consideration, was
    a retired

    [[Page 112 STAT. 2003]]

    officer or former officer of the Armed Forces (including a deceased
    retired or former officer) is hereby ratified.

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

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

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

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

    [[Page 112 STAT. 2004]]

        (2) The table of sections at the beginning of chapter 60 of such
    title is amended by striking out the items relating to sections 1183 and
    1184 and inserting in lieu thereof the following:

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

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

        (a) Commanders.--Section 633 of title 10, United States Code, is
    amended--
                (1) by striking out ``Except an officer'' and all that
            follows through ``or section 6383 of this title applies'' and
            inserting in lieu thereof ``Except an officer of the Navy or
            Marine Corps who is an officer designated for limited duty to
            whom section 5596(e) or 6383 of this title applies''; and
                (2) by striking out the second sentence.

        (b) Captains.--Section 634 of such title is amended--
                (1) by inserting ``an officer of the Navy who is designated
            for limited duty to whom section 6383(a)(4) of this title
            applies and except'' in the first sentence after ``Except''; and
                (2) by striking out the second sentence.

        (c) Years of Active Naval Service.--Section 6383(a) of such title is
    amended by striking out paragraph (5).
        (d) Limitations on Selective Retentions.--Section 6383(k) of such
    title is amended by striking out the last sentence.

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

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

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

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

    SEC. 507. <<NOTE: 10 USC 2107 note.>>  REVIEW REGARDING ALLOCATION OF
                NAVAL RESERVE OFFICERS' TRAINING CORPS SCHOLARSHIPS AMONG
                PARTICIPATING COLLEGES AND UNIVERSITIES.

        (a) Review.--The Secretary of the Navy should review the process and
    criteria used to determine the number of Naval Reserve Officer Training
    Corps (NROTC) scholarship recipients who attend each college and
    university participating in the NROTC program and how those scholarships
    are allocated to those schools.
        (b) Purpose of Review.--The review should seek to determine--
                (1) whether the method used by the Navy to allocate NROTC
            scholarships could be changed so as to increase the likelihood
            that scholarship awardees attend the school of their choice
            while maintaining the Navy's capability to attain the objectives
            of the Naval ROTC program to meet the annual

    [[Page 112 STAT. 2005]]

            requirement for newly commissioned Navy ensigns and Marine Corps
            second lieutenants, as well as the overall needs of the officer
            corps of the Department of the Navy; and
                (2) within the determination under paragraph (1), whether
            the likelihood of a scholarship awardee who wants to attend a
            school of choice in the student's State of residence can be
            increased.

        (c) Matters Reviewed.--The matters reviewed should include the
    following:
                (1) The factors and criteria considered in the process of
            determining the allocation of NROTC scholarships to host
            colleges and universities.
                (2) Historical data indicating the extent to which NROTC
            scholarship recipients attend colleges and universities they
            have indicated a preference to attend, as opposed to attending
            solely or mainly in order to receive an NROTC scholarship.
                (3) The extent to which the process used by the Navy to
            allocate NROTC scholarships to participating colleges and
            universities contributes to optimizing resources available for
            the operation of the NROTC program and improving the
            professional education of NROTC midshipmen.
                (4) The effects that eliminating the controlled allocation
            of scholarships to host colleges and universities, entirely or
            by State, would have on the NROTC program.

        (d) Consultation Requirement.--In carrying out a review under
    subsection (a), the Secretary should consult with officials of
    interested associations and of colleges and universities which host ROTC
    units and such other officials as the Secretary considers appropriate.

                      Subtitle B--Reserve Component Matters

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

        (a) Order to Active Duty.--(1) Section 12304 of title 10, United
    States Code, is amended--
                (A) in subsection (a), by inserting ``or that it is
            necessary to provide assistance referred to in subsection (b)''
            after ``to augment the active forces for any operational
            mission'';
                (B) in subsection (b)--
                        (i) by striking out ``(b)'' and inserting in lieu
                    thereof ``(c) Limitations.--(1)''; and
                        (ii) by striking out ``, or to provide'' and
                    inserting in lieu thereof ``or, except as provided in
                    subsection (b), to provide'';
                (C) by redesignating subsection (c) as paragraph (2); and
                (D) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) Support for Responses to Certain Emergencies.--The authority
    under subsection (a) includes authority to order a unit or member to
    active duty to provide assistance in responding to an emergency
    involving a use or threatened use of a weapon of mass destruction.''.
        (2) Subsection (i) of such section is amended to read as follows:
        ``(i) Definitions.--In this section:

    [[Page 112 STAT. 2006]]

                ``(1) The term `Individual Ready Reserve mobilization
            category' means, in the case of any reserve component, the
            category of the Individual Ready Reserve described in section
            10144(b) of this title.
                ``(2) The term `weapon of mass destruction' has the meaning
            given that term in section 1403 of the Defense Against Weapons
            of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).''.

        (3) Such section is further amended--
                (A) in subsection (a), by inserting ``Authority.--'' after
            ``(a)'';
                (B) in subsection (d), by inserting ``Exclusion From
            Strength Limitations.--'' after ``(d)'';
                (C) in subsection (e), by inserting ``Policies and
            Procedures.--'' after ``(e)'';
                (D) in subsection (f ), by inserting ``Notification of
            Congress.--'' after ``(f )'';
                (E) in subsection (g), by inserting ``Termination of
            Duty.--'' after ``(g)''; and
                (F) in subsection (h), by inserting ``Relationship to War
            Powers Resolution.--'' after ``(h)''.

        (b) Use of Active Guard and Reserve Personnel.--(1)
    Section 12310 of title 10, United States Code, is amended by adding at
    the end the following new subsection:
        ``(c)(1) A Reserve on active duty as described in subsection (a), or
    a Reserve who is a member of the National Guard serving on full-time
    National Guard duty under section 502(f ) of title 32 in connection with
    functions referred to in subsection (a), may, subject to paragraph (3),
    perform duties in support of emergency preparedness programs to prepare
    for or to respond to any emergency involving the use of a weapon of mass
    destruction (as defined in section 1403 of the Defense Against Weapons
    of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).
        ``(2) The costs of the pay, allowances, clothing, subsistence,
    gratuities, travel, and related expenses for a Reserve performing duties
    under the authority of paragraph (1) shall be paid from the
    appropriation that is available to pay such costs for other members of
    the reserve component of that Reserve who are performing duties as
    described in subsection (a).
        ``(3) A Reserve may perform duties described in paragraph (1) only--
                ``(A) while assigned to the Department of Defense
            Consequence Management Program Integration Office; or
                ``(B) while assigned to a reserve component rapid assessment
            element team and performing those duties within the geographical
            limits of the United States, its territories and possessions,
            the District of Columbia, and the Commonwealth of Puerto Rico.

        ``(4) The number of Reserves on active duty who are performing
    duties described in paragraph (1) at the same time may not exceed 228.
    Reserves on active duty who are performing duties described in paragraph
    (1) shall be counted against the annual end strength authorizations
    required by section 115(a)(1)(B) and 115(a)(2) of this title. The
    justification material for the defense budget request for a fiscal year
    shall identify the number and component of the Reserves programmed to be
    performing duties described in paragraph (1) during that fiscal year.

    [[Page 112 STAT. 2007]]

        ``(5) A reserve component rapid assessment element team, and any
    Reserve assigned to such a team, may not be used to respond to an
    emergency described in paragraph (1) unless the Secretary of Defense has
    certified to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives that that
    team, or that Reserve, possesses the requisite skills, training, and
    equipment to be proficient in all mission requirements.
        ``(6) If the Secretary of Defense submits to Congress any request
    for the enactment of legislation to modify the requirements of paragraph
    (3) or to increase the number of personnel authorized by paragraph (4),
    the Secretary shall provide with the request--
                ``(A) justification for each such requested modification or
            for the requested additional personnel and explain the need for
            the increase in the context of existing or projected similar
            capabilities at the local, State, and Federal levels; and
                ``(B) the Secretary's plan for sustaining the qualifications
            of the personnel and teams described in paragraph (3)(B).''.

        (2) The Secretary of Defense may not submit to Congress earlier than
    90 days after the date of the receipt by Congress of the report required
    by section 1411 of this Act a request for the enactment of legislation
    to modify the requirements of paragraph (3), or to increase the number
    of personnel authorized by paragraph (4), of section 12310(c) of title
    10, United States Code, as added by paragraph (1).

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

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

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

        (a) Minimum Service in Active Status.--Section 1370(d)(3) of title
    10, United States Code, as amended by section 511, is further amended by
    adding at the end the following new subparagraph:
        ``(F) A person covered by subparagraph (A) who has completed at
    least six months of satisfactory service in a grade above colonel or (in
    the case of the Navy) captain and, while serving in an active status in
    such grade, is involuntarily transferred (other than for cause) from
    active status may be credited with satisfactory

    [[Page 112 STAT. 2008]]

    service in the grade in which serving at the time of such transfer,
    notwithstanding failure of the person to complete three years of service
    in that grade.''.
        (b) Effective <<NOTE: 10 USC 1370 note.>>  Date.--Subparagraph (F)
    of such section, as added by subsection (a), shall take effect on the
    date of the enactment of this Act and shall apply with respect to
    transfers referred to in such subparagraph that are made on or after
    that date.

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

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

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

        (a) In General.--Section 14705(b) of title 10, United States Code,
    is amended--
                (1) by inserting ``(1)'' after ``(b) Boards.--''; and
                (2) by adding at the end the following:

        ``(2) In the case of such a board convened to consider officers in
    the grade of rear admiral or major general, the Secretary of the Navy
    may appoint the board without regard to section 14102(b) of this title.
    In doing so, however, the Secretary shall ensure that--
                ``(A) each regular commissioned officer appointed to the
            board holds a grade higher than the grade of rear admiral or
            major general; and
                ``(B) at least one member of the board is a reserve officer
            who holds the grade of rear admiral or major general.''.

        (b) Technical Amendments.--Paragraph (1) of such section, as
    designated by subsection (a)(1), is amended--
                (1) by inserting ``of officers'' after ``consideration'';
            and
                (2) by inserting ``continuation'' after ``shall convene a''.

    SEC. 516. <<NOTE: 10 USC 12205 note.>>  AUTHORITY FOR TEMPORARY WAIVER
                FOR CERTAIN ARMY RESERVE OFFICERS OF BACCALAUREATE DEGREE
                REQUIREMENT FOR PROMOTION OF RESERVE OFFICERS.

        (a) Waiver Authority for Army OCS Graduates.--The Secretary of the
    Army may waive the applicability of section 12205(a) of title 10, United
    States Code, to any officer who before the date of the enactment of this
    Act was commissioned through the Army Officer Candidate School. Any such
    waiver shall be made on a case-by-case basis, considering the individual
    circumstances of the officer involved, and may continue in effect for no
    more than 2 years after the waiver is granted. The Secretary may provide
    for

    [[Page 112 STAT. 2009]]

    such a waiver to be effective before the date of the waiver, as
    appropriate in an individual case.
        (b) Expiration of Authority.--A waiver under this section may not be
    granted after September 30, 2000.

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

        Section 2301 of title 38, United States Code, is amended by adding
    at the end the following new subsection:
        ``(f )(1) The Secretary shall furnish a flag to drape the casket of
    each deceased member or former member of the Selected Reserve (as
    <plus-minus>described in section 10143 of title 10) who is not otherwise
    eligible for a flag under this section or section 1482(a) of title 10--
                ``(A) who completed at least one enlistment as a member of
            the Selected Reserve or, in the case of an officer, completed
            the period of initial obligated service as a member of the
            Selected Reserve;
                ``(B) who was discharged before completion of the person's
            initial enlistment as a member of the Selected Reserve or, in
            the case of an officer, period of initial obligated service as a
            member of the Selected Reserve, for a disability incurred or
            aggravated in line of duty; or
                ``(C) who died while a member of the Selected Reserve.

        ``(2) A flag may not be furnished under subparagraphs (A) or (B) of
    paragraph (1) in the case of a person whose last discharge from service
    in the Armed Forces was under conditions less favorable than honorable.
        ``(3) After the burial, a flag furnished under paragraph (1) shall
    be given to the next of kin or to such other person as the Secretary
    considers appropriate.''.

                   Subtitle C--Military Education and Training

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

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

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

        ``(a) Physically Separate Housing.--(1) The Secretary of the Army
    shall provide for housing male recruits and female recruits separately
    and securely from each other during basic training.
        ``(2) To meet the requirements of paragraph (1), the sleeping areas
    and latrine areas provided for male recruits shall be physically
    separated from the sleeping areas and latrine areas provided for female
    recruits by permanent walls, and the areas for male recruits and the
    areas for female recruits shall have separate entrances.
        ``(3) The Secretary shall ensure that, when a recruit is in an area
    referred to in paragraph (2), the area is supervised by one or more
    persons who are authorized and trained to supervise the area.
        ``(b) Alternative Separate Housing.--If male recruits and female
    recruits cannot be housed as provided under subsection

    [[Page 112 STAT. 2010]]

    (a) by October 1, 2001, at a particular installation, the Secretary of
    the Army shall require (on and after that date) that male recruits in
    basic training at such installation be housed in barracks or other troop
    housing facilities that are only for males and that female recruits in
    basic training at such installation be housed in barracks or other troop
    housing facilities that are only for females.
        ``(c) Construction Planning.--In planning for the construction of
    housing to be used for housing recruits during basic training, the
    Secretary of the Army shall ensure that the housing is to be constructed
    in a manner that facilitates the housing of male recruits and female
    recruits separately and securely from each other.
        ``(d) Basic Training Defined.--In this section, the term `basic
    training' means the initial entry training program of the Army that
    constitutes the basic training of new recruits.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

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

        (3) <<NOTE: 10 USC 4319 note.>>  The Secretary of the Army shall
    implement section 4319 of title 10, United States Code, as added by
    paragraph (1), as rapidly as feasible and shall ensure that the
    provisions of that section are applied to all recruit basic training
    classes beginning not later than the first such class that enters basic
    training on or after April 15, 1999.

        (b) Navy and Marine Corps.--(1) Part III of subtitle C of title 10,
    United States Code, is amended by inserting after chapter 601 the
    following new chapter:

                        ``CHAPTER 602--TRAINING GENERALLY

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

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

        ``(a) Physically Separate Housing.--(1) The Secretary of the Navy
    shall provide for housing male recruits and female recruits separately
    and securely from each other during basic training.
        ``(2) To meet the requirements of paragraph (1), the sleeping areas
    and latrine areas provided for male recruits shall be physically
    separated from the sleeping areas and latrine areas provided for female
    recruits by permanent walls, and the areas for male recruits and the
    areas for female recruits shall have separate entrances.
        ``(3) The Secretary shall ensure that, when a recruit is in an area
    referred to in paragraph (2), the area is supervised by one or more
    persons who are authorized and trained to supervise the area.
        ``(b) Alternative Separate Housing.--If male recruits and female
    recruits cannot be housed as provided under subsection (a) by October 1,
    2001, at a particular installation, the Secretary of the Navy shall
    require (on and after that date) that male recruits in basic training at
    such installation be housed in barracks or other troop housing
    facilities that are only for males and that female recruits in basic
    training at such installation be housed in barracks or other troop
    housing facilities that are only for females.

    [[Page 112 STAT. 2011]]

        ``(c) Construction Planning.--In planning for the construction of
    housing to be used for housing recruits during basic training, the
    Secretary of the Navy shall ensure that the housing is to be constructed
    in a manner that facilitates the housing of male recruits and female
    recruits separately and securely from each other.
        ``(d) Basic Training Defined.--In this section, the term `basic
    training' means the initial entry training programs of the Navy and
    Marine Corps that constitute the basic training of new recruits.''.
        (2) The tables of chapters at the beginning of subtitle C, and at
    the beginning of part III of subtitle C, of such title are amended by
    inserting after the item relating to chapter 601 the following new item:

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

        (3) <<NOTE: 10 USC 6931 note.>>  The Secretary of the Navy shall
    implement section 6931 of title 10, United States Code, as added by
    paragraph (1), as rapidly as feasible and shall ensure that the
    provisions of that section are applied to all recruit basic training
    classes beginning not later than the first such class that enters basic
    training on or after April 15, 1999.

        (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is
    amended by adding at the end the following new section:

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

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

    [[Page 112 STAT. 2012]]

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

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

        (3) <<NOTE: 10 USC 9319 note.>>  The Secretary of the Air Force
    shall implement section 9319 of title 10, United States Code, as added
    by paragraph (1), as rapidly as feasible and shall ensure that the
    provisions of that section are applied to all recruit basic training
    classes beginning not later than the first such class that enters basic
    training on or after April 15, 1999.

        (d) GAO Review of Costs of Separate Housing Facilities for Male and
    Female Recruits During Recruit Basic Training.--Not later than March 1,
    1999, the Comptroller General shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives a report on the costs that would be incurred by
    each of the military departments if required to provide housing for male
    and female recruits during basic training in separate structures. The
    report shall be prepared separately for each of the Army, Navy, and Air
    Force and shall be based on reviews and cost analyses prepared
    independently of the Department of Defense.

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

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

    ``Sec. 4320. Recruit basic training: privacy

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

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

        (3) <<NOTE: 10 USC 4320 note.>>  The Secretary of the Army shall
    implement section 4320 of title 10, United States Code, as added by
    paragraph (1), as rapidly as feasible and shall ensure that the
    provisions of that section are applied to all recruit basic training
    classes beginning not later than the first such class that enters basic
    training on or after April 15, 1999.

        (b) Navy.--(1) Chapter 602 of title 10, United States Code, as added
    by section 521(b)(1), is amended by adding at the end the following new
    section:

    ``Sec. 6932. Recruit basic training: privacy

        ``The Secretary of the Navy shall require that access by recruit
    division commanders and other training personnel to a living area

    [[Page 112 STAT. 2013]]

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

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

        (3) <<NOTE: 10 USC 6932 note.>>  The Secretary of the Navy shall
    implement section 6932 of title 10, United States Code, as added by
    paragraph (1), as rapidly as feasible and shall ensure that the
    provisions of that section are applied to all recruit basic training
    classes beginning not later than the first such class that enters basic
    training on or after April 15, 1999.

        (c) Air Force.--(1) Chapter 901 of title 10, United States Code, is
    amended by adding after section 9319, as added by section 521(c)(1), the
    following new section:

    ``Sec. 9320. Recruit basic training: privacy

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

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

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

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

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

    [[Page 112 STAT. 2014]]

    that was submitted to the Secretary of Defense on December 16, 1997.

    SEC. 524. <<NOTE: 10 USC 113 note.>>  EXTENSION OF REPORTING DATES FOR
                COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES.

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

    SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.

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

        (b) <<NOTE: 10 USC 2012 note.>>  Implementation.--The Secretary of
    Defense may not initiate any project under section 2012 of title 10,
    United States Code, after October 1, 1998, until the program required by
    subsection (i) of that section (as added by subsection (a)) has been
    established.

    [[Page 112 STAT. 2015]]

               Subtitle D--Decorations, Awards, and Commendations

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

        (a) Study of Need and Criteria for New Decoration.--(1) The
    Secretary of Defense shall carry out a study of the need for, and the
    the appropriate criteria for, two possible new decorations.
        (2) The first such decoration would, if implemented, be awarded to
    members of the Armed Forces who, while serving under competent authority
    in any capacity with the Armed Forces, are killed or injured in the line
    of duty as a result of noncombat circumstances occurring--
                (A) as a result of an international terrorist attack against
            the United States or a foreign nation friendly to the United
            States;
                (B) while engaged in, training for, or traveling to or from
            a peacetime or contingency operation; or
                (C) while engaged in, training for, or traveling to or from
            service outside the territory of the United States as part of a
            peacekeeping force.

        (3) The second such decoration would, if implemented, be awarded to
    civilian nationals of the United States who, while serving under
    competent authority in any capacity with the Armed Forces, are killed or
    injured in the line of duty under circumstances which, if they were
    members of the Armed Forces, would qualify them for award of the Purple
    Heart or the medal described in paragraph (2).
        (b) Recommendation to Congress.--Not later than July 31, 1999, the
    Secretary shall submit to Congress a report setting forth the
    Secretary's recommendation concerning the need for, and propriety of,
    each of the possible new decorations referred to in subsection (a).
        (c) Coordination.--The Secretary shall carry out this section in
    coordination with the Secretaries of the military departments and the
    Secretary of Transportation with regard to the Coast Guard.

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

        (a) Waiver.--Any limitation established by law or policy for the
    time within which a recommendation for the award of a military
    decoration or award must be submitted shall not apply to awards of
    decorations described in this section, the award of each such decoration
    having been determined by the Secretary of the military department
    concerned to be warranted in accordance with section 1130 of title 10,
    United States Code.
        (b) Distinguished-Service Cross.--Subsection (a) applies to the
    award of the Distinguished-Service Cross of the Army as follows:
                (1) To Isaac Camacho of El Paso, Texas, for extraordinary
            heroism in actions at Camp Hiep Hoa in Vietnam on November 24,
            1963, while serving as a member of the Army.
                (2) To Bruce P. Crandall of Mesa, Arizona, for extraordinary
            heroism in actions at Landing Zone X-Ray in Vietnam on November
            14, 1965, while serving as a member of the Army.

    [[Page 112 STAT. 2016]]

                (3) To Leland B. Fair of Jessieville, Arkansas, for
            extraordinary heroism in actions in the Philippine Islands on
            July 4, 1945, while serving as a member of the Army.

        (c) Distinguished-Service Medal.--Subsection (a) applies to the
    award of the Distinguished-Service Medal of the Army to Richard P.
    Sakakida of Fremont, California, for exceptionally meritorious service
    while a prisoner of war in the Philippine Islands from May 7, 1942, to
    September 14, 1945, while serving as a member of the Army.
        (d) Navy Cross.--Subsection (a) applies to the posthumous award of
    the Navy Cross to Joseph F. Keenan for extraordinary heroism in actions
    on March 26-27, 1953, while serving as a member of the Navy.
        (e) Silver Star Medal.--Subsection (a) applies to the award of the
    Silver Star Medal of the Navy to Andrew A. Bernard of Methuen,
    Massachusetts, for gallantry in action on November 24, 1943, while
    serving as a member of the Navy.
        (f ) Distinguished Flying Cross.--Subsection (a) applies to the
    award of the Distinguished Flying Cross for service during World War II
    or Korea (including multiple awards to the same individual) in the case
    of each individual (not covered by section 573(d) of the National
    Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
    Stat. 1757)) concerning whom the Secretary of the Navy (or an officer of
    the Navy acting on behalf of the Secretary) submitted to the Committee
    on National Security of the House of Representatives and the Committee
    on Armed Services of the Senate, before the date of the enactment of
    this Act, a notice as provided in section 1130(b) of title 10, United
    States Code, that the award of the Distinguished Flying Cross to that
    individual is warranted and that a waiver of time restrictions
    prescribed by law for recommendation for such award is recommended.

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

        (a) Findings.--Congress makes the following findings:
                (1) The United States established the Asiatic Fleet of the
            Navy in 1910 to protect United States nationals, policies, and
            possessions in the Far East.
                (2) The sailors and Marines of the Asiatic Fleet ensured the
            safety of United States and foreign nationals and provided
            humanitarian assistance in that region during the Chinese civil
            war, the Yangtze Flood of 1931, and the outbreak of Sino-
            Japanese hostilities.
                (3) In 1940, due to deteriorating political relations and
            increasing tensions between the United States and Japan, a
            reinforced Asiatic Fleet began concentrating on the defense of
            the Philippines and engaged in extensive training to ensure
            maximum operational readiness for any eventuality.
                (4) Following the declaration of war against Japan in
            December 1941, the warships, submarines, and aircraft of the
            Asiatic Fleet courageously fought many battles against superior
            Japanese forces.
                (5) The Asiatic Fleet directly suffered the loss of 22
            vessels, 1,826 men killed or missing in action, and 518 men
            captured

    [[Page 112 STAT. 2017]]

            and imprisoned under the worst of conditions, with many of them
            dying while held as prisoners of war.

        (b) Congressional Commendation.--Congress--
                (1) commends the Navy and Marine Corps personnel who served
            in the Asiatic Fleet of the United States Navy during the period
            from 1910 to 1942; and
                (2) honors those who gave their lives in the line of duty
            while serving in the Asiatic Fleet.

        (c) Commemoration of United States Navy Asiatic Fleet.--
    The <<NOTE: President.>>  President is authorized and requested to issue
    a proclamation designating an appropriate commemoration of the United
    States Navy Asiatic Fleet and calling upon the people of the United
    States to observe such commemoration with appropriate programs,
    ceremonies, and activities.

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

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

        (b) Sense of Congress.--Congress expresses its appreciation, and the
    appreciation of the American people, for the dedicated service performed
    during World War I and World War II by members of the Navy assigned as
    gun crews on board merchant ships as part of the Naval Armed Guard
    Service.

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

        (a) Findings.--Congress finds the following:
                (1) South Vietnam, Australia, South Korea, Thailand, New
            Zealand, and the Philippines contributed military forces,

    [[Page 112 STAT. 2018]]

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

        (b) Sense of Congress.--Congress recognizes and honors the members
    and former members of the military forces of South Vietnam, the Republic
    of Korea, Thailand, Australia, New Zealand, and the Philippines, as well
    as members of the Hmong, Nung, Montagnard, Kahmer, Hoa Hao, and Cao Dai,
    for their heroism, sacrifice, and service in connection with United
    States Armed Forces during the Vietnam conflict.

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

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

        (b) Sense of Congress--Congress recognizes and honors the former
    South Vietnamese commandos for their heroism, sacrifice, and service in
    connection with United States Armed Forces during the Vietnam conflict.

    [[Page 112 STAT. 2019]]

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

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

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

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

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

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

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

    SEC. 541. <<NOTE: 10 USC 1551 note.>>  PERSONNEL FREEZE.

        (a) Limitation.--During fiscal years 1999, 2000, and 2001, the
    Secretary of a military department may not carry out any reduction in
    the number of military and civilian personnel assigned to duty with the
    service review agency for that military department below the baseline
    number for that agency until--
                (1) <<NOTE: Reports.>>  the Secretary submits to Congress a
            report that describes the reduction proposed to be made,
            provides the Secretary's rationale for that reduction, and
            specifies the number of such personnel that would be assigned to
            duty with that agency after the reduction; and
                (2) a period of 90 days has elapsed after the date on which
            such report is submitted.

        (b) Baseline Number.--The baseline number for a service review
    agency under this section is--
                (1) for purposes of the first report with respect to a
            service review agency under this section, the number of military
            and civilian personnel assigned to duty with that agency as of
            October 1, 1997; and
                (2) for purposes of any subsequent report with respect to a
            service review agency under this section, the number of such
            personnel specified in the most recent report with respect to
            that agency under this section.

        (c) Service Review Agency Defined.--In this section, the term
    ``service review agency'' means--

    [[Page 112 STAT. 2020]]

                (1) with respect to the Department of the Army, the Army
            Review Boards Agency;
                (2) with respect to the Department of the Navy, the Board
            for Correction of Naval Records; and
                (3) with respect to the Department of the Air Force, the Air
            Force Review Boards Agency.

    SEC. 542. PROFESSIONAL STAFF.

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

    ``Sec. 1555. Professional staff

        ``(a) The Secretary of each military department shall assign to the
    staff of the service review agency of that military department at least
    one attorney and at least one physician. Such assignments shall be made
    on a permanent, full-time basis and may be made from members of the
    armed forces or civilian employees.
        ``(b) Personnel assigned pursuant to subsection (a)--
                ``(1) shall work under the supervision of the director or
            executive director (as the case may be) of the service review
            agency; and
                ``(2) shall be assigned duties as advisers to the director
            or executive director or other staff members on legal and
            medical matters, respectively, that are being considered by the
            agency.

        ``(c) In this section, the term `service review agency' means--
                ``(1) with respect to the Department of the Army, the Army
            Review Boards Agency;
                ``(2) with respect to the Department of the Navy, the Board
            for Correction of Naval Records; and
                ``(3) with respect to the Department of the Air Force, the
            Air Force Review Boards Agency.''.

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

    ``1555. Professional staff.''.

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

    SEC. 543. EX PARTE COMMUNICATIONS.

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

    ``Sec. 1556. Ex parte communications prohibited

        ``(a) In General.--The Secretary of each military department shall
    ensure that an applicant seeking corrective action by the Army Review
    Boards Agency, the Air Force Review Boards Agency, or the Board for
    Correction of Naval Records, as the case may be, is provided a copy of
    all correspondence and communications (including summaries of verbal
    communications) to or from the agency or board, or a member of the staff
    of the agency or board, with an entity or person outside the agency or
    board that pertain directly to the applicant's case or have a material
    effect on the applicant's case.
        ``(b) Exceptions.--Subsection (a) does not apply to the
    following:

    [[Page 112 STAT. 2021]]

                ``(1) Classified information.
                ``(2) Information the release of which is otherwise
            prohibited by law or regulation.
                ``(3) Any record previously provided to the applicant or
            known to be possessed by the applicant.
                ``(4) Any correspondence that is purely administrative in
            nature.
                ``(5) Any military record that is (or may be) provided to
            the applicant by the Secretary of the military department or
            other source.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding after the item relating to 1555, as added by section
    542(a)(2), the following new item:

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

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

    SEC. 544. TIMELINESS STANDARDS.

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

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

        ``(a) Ten-Month Clearance Percentage.--Of the applications received
    by a Corrections Board during a period specified in the following table,
    the percentage on which final action by the Corrections Board must be
    completed within 10 months of receipt (other than for those applications
    considered suitable for administrative correction) is as follows:
                              The percentage on which final
    ``For applications            Correction Board action
      received during--           must be completed within
                                  10 months of receipt is--
    the period of fiscal years 2001 and 2002                          50
    the period of fiscal years 2003 and 2004                          60
    the period of fiscal years 2005, 2006,                            70
        and 2007
    the period of fiscal years 2008, 2009,                            80
        and 2010
    the period of any fiscal year after                              90.
        fiscal year 2010

        ``(b) Clearance Deadline for All Applications.--Effective October 1,
    2002, final action by a Corrections Board on all applications received
    by the Corrections Board (other than those applications considered
    suitable for administrative correction) shall be completed within 18
    months of receipt.
        ``(c) Waiver Authority.--The Secretary of the military department
    concerned may exclude an individual application from the timeliness
    standards prescribed in subsections (a) and (b) if the Secretary
    determines that the application warrants a longer period of
    consideration. The authority of the Secretary of a military department
    under this subsection may not be delegated.
        ``(d) Failure To Meet Timeliness Standards Not To Affect Any
    Individual Application.--Failure of a Corrections Board to meet the
    applicable timeliness standard for any period of time under subsection
    (a) or (b) does not confer any presumption or advantage with respect to
    consideration by the board of any application.

    [[Page 112 STAT. 2022]]

        ``(e) Reports on Failure To Meet Timeliness Standards.--The
    Secretary of the military department concerned shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a report not later than June 1
    following any fiscal year during which the Corrections Board of that
    Secretary's military department was unable to meet the applicable
    timeliness standard for that fiscal year under subsections (a) and (b).
    The report shall specify the reasons why the standard could not be met
    and the corrective actions initiated to ensure compliance in the future.
    The report shall also specify the number of waivers granted under
    subsection (c) during that fiscal year.
        ``(f ) Corrections Board Defined.--In this section, the term
    `Corrections Board' means--
                ``(1) with respect to the Department of the Army, the Army
            Board for Correction of Military Records;
                ``(2) with respect to the Department of the Navy, the Board
            for Correction of Naval Records; and
                ``(3) with respect to the Department of the Air Force, the
            Air Force Board for Correction of Military Records.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding after the item relating to section
    1556, as added by section 543(a)(2), the following new item:

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

    SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

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

    [[Page 112 STAT. 2023]]

                               Subtitle F--Reports

    SEC. 551. REPORT ON PERSONNEL RETENTION.

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

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

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

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

        (a) Report.--Not later than 90 days after the date of the enactment
    of this Act, the Secretary of Defense shall submit to Congress a report,
    to be prepared by the General Counsel of the Department of Defense,
    concerning the decision of the Secretary of the Army in 1994 to transfer
    approximately 500 prisoners from the United States Disciplinary
    Barracks, Fort Leavenworth, Kansas, to the Federal Bureau of Prisons.
        (b) Matters To Be Included.--The Secretary shall include in the
    report the following:

    [[Page 112 STAT. 2024]]

                (1) A description of the basis for the selection of
            prisoners to be transferred, particularly in light of the fact
            that many of the prisoners transferred are minimum or medium
            security prisoners, who are considered to have the best chance
            for rehabilitation, and whether the transfer of those prisoners
            indicates a change in Department of Defense policy regarding the
            rehabilitation of military prisoners.
                (2) A comparison of the historical recidivism rates of
            prisoners released from the United States Disciplinary Barracks
            and the Federal Bureau of Prisons, together with a description
            of any plans of the Army to track the parole and recidivism
            rates of prisoners transferred to the Federal Bureau of Prisons
            and whether it has tracked those factors for previous
            transferees.
                (3) A description of the projected future flow of prisoners
            into the new United States Disciplinary Barracks being
            constructed at Fort Leavenworth, Kansas, and whether the
            Secretary of the Army plans to automatically send new prisoners
            to the Federal Bureau of Prisons without serving at the United
            States Disciplinary Barracks if that Barracks is at capacity and
            whether the Memorandum of Understanding between the Federal
            Bureau of Prisons and the Army covers that possibility.
                (4) A description of the cost of incarcerating a prisoner in
            the Federal Bureau of Prisons compared to the United States
            Disciplinary Barracks and the assessment of the Secretary as to
            the extent to which the transfer of prisoners to the Federal
            Bureau of Prisons by the Secretary of the Army is made in order
            to shift a budgetary burden.

        (c) Monitoring.--During fiscal years 1999 through 2003, the
    Secretary of the Army shall track the parole and recidivism rates of
    prisoners transferred from the United States Disciplinary Barracks, Fort
    Leavenworth, Kansas, to the Federal Bureau of Prisons.

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

        (a) Requirement for Review.--The Chief of the National Guard Bureau
    shall review the process used for allocating and distributing all
    categories of full-time support personnel among the States for the
    National Guard of the States.
        (b) Purpose of Review.--The purpose of the review is to determine
    whether that allocation and distribution process provides for adequately
    meeting the full-time support personnel requirements of the National
    Guard in the case of those States that have fewer than 16 National Guard
    units categorized in readiness tiers I, II, and III.
        (c) Matters To Be Reviewed.--The matters reviewed shall include the
    following:
                (1) The factors considered for the process of determining
            the distribution among the States of full-time support
            personnel, including the weights assigned to those factors.
                (2) The extent to which that process results in full-time
            support personnel levels for the units of the States described
            in subsection (b) that are at the levels necessary to optimize
            the preparedness of those units to meet the mission requirements
            applicable to those units.

    [[Page 112 STAT. 2025]]

                (3) The effects that full-time support personnel at levels
            determined under that process will have on the National Guard of
            those States in the future, including the effects on all
            categories of full-time support personnel, and unit readiness,
            recruitment, and continued use of existing National Guard
            armories and other facilities.

        (d) Report.--Not later than March 15, 1999, the Chief of the
    National Guard Bureau shall submit to the Secretary of Defense a report
    on the results of the review. Not later than April 30, 1999, the
    Secretary shall transmit the report, and the Secretary's evaluation of
    and comments on the report, to the Committee on Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives.

                            Subtitle G--Other Matters

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

        (a) Early Retirement Authority for Active Force
    Members.--Section 4403(i) of the National Defense Authorization Act for
    Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking out
    ``October 1, 1999'' and inserting in lieu thereof ``October 1, 2001''.
        (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 10,
    United States Code, are amended by striking out ``September 30, 1999''
    and inserting in lieu thereof ``September 30, 2001''.
        (c) Selective Early Retirement Boards.--Section 638a(a) of such
    title is amended by striking out ``during the nine-year period beginning
    on October 1, 1990'' and inserting in lieu thereof ``during the period
    beginning on October 1, 1990, and ending on September 30, 2001''.
        (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary
    Retirement.--Section 1370(a)(2)(A) of such title is amended by striking
    out ``during the nine-year period beginning on October 1, 1990'' and
    inserting in lieu thereof ``during the period beginning on October 1,
    1990, and ending on September 30, 2001''.
        (e) Minimum Commissioned Service for Voluntary Retirement as an
    Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are
    amended by striking out ``during the nine-year period beginning on
    October 1, 1990'' and inserting in lieu thereof ``during the period
    beginning on October 1, 1990, and ending on September 30, 2001''.
        (f ) Travel, Transportation, and Storage Benefits.--
    Sections 404(c)(1)(C), 404(f )(2)(B)(v), 406(a)(2)(B)(v), and
    406(g)(1)(C) of title 37, United States Code, and section 503(c) of the
    National Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406
    note) are amended by striking out ``during the nine-year period
    beginning on October 1, 1990'' and inserting in lieu thereof ``during
    the period beginning on October 1, 1990, and ending on September 30,
    2001''.
        (g) Educational Leave for Public and Community
    Service.--Section 4463(f ) of the National Defense Authorization Act for
    Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by striking out
    ``September 30, 1999'' and inserting in lieu thereof ``September 30,
    2001''.

    [[Page 112 STAT. 2026]]

        (h) Transitional Health Benefits.--Section 1145 of title 10, United
    States Code, is amended--
                (1) in subsections (a)(1) and (c)(1), by striking out
            ``during the nine-year period beginning on October 1, 1990'' and
            inserting in lieu thereof ``during the period beginning on
            October 1, 1990, and ending on September 30, 2001''; and
                (2) in subsection (e), by striking out ``during the five-
            year period beginning on October 1, 1994'' and inserting in lieu
            thereof ``during the period beginning on October 1, 1994, and
            ending on September 30, 2001''.

        (i) Transitional Commissary and Exchange Benefits.--
    Section 1146 of such title is amended--
                (1) by striking out ``during the nine-year period beginning
            on October 1, 1990'' and inserting in lieu thereof ``during the
            period beginning on October 1, 1990, and ending on September 30,
            2001''; and
                (2) by striking out ``during the five-year period beginning
            on October 1, 1994'' and inserting in lieu thereof ``during the
            period beginning on October 1, 1994, and ending on September 30,
            2001''.

        ( j) Transitional Use of Military Housing.--Section 1147(a) of such
    title is amended--
                (1) in paragraph (1), by striking out ``during the nine-year
            period beginning on October 1, 1990'' and inserting in lieu
            thereof ``during the period beginning on October 1, 1990, and
            ending on September 30, 2001''; and
                (2) in paragraph (2), by striking out ``during the five-year
            period beginning on October 1, 1994'' and inserting in lieu
            thereof ``during the period beginning on October 1, 1994, and
            ending on September 30, 2001''.

        (k) Continued Enrollment of Dependents in Defense Dependents'
    Education System.--Section 1407(c)(1) of the Defense Dependents'
    Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out
    ``during the nine-year period beginning on October 1, 1990'' and
    inserting in lieu thereof ``during the period beginning on October 1,
    1990, and ending on September 30, 2001''.
        (l) Force Reduction Transition Period Definition.--Section 4411 of
    the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C.
    12681 note) is amended by striking out ``September 30, 1999'' and
    inserting in lieu thereof ``September 30, 2001''.
        (m) Temporary Special Authority for Force Reduction Period
    Retirements.--Section 4416(b)(1) of the National Defense Authorization
    Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking
    out ``October 1, 1999'' and inserting in lieu thereof ``October 1,
    2001''.
        (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f ) of
    title 10, United States Code, is amended by striking out ``September 30,
    1999'' and inserting in lieu thereof ``September 30, 2001''.
        (2) Section 12731a of such title is amended in subsections (a)(1)(B)
    and (b) by striking out ``October 1, 1999'' and inserting in lieu
    thereof ``October 1, 2001''.
        (o) Reduction of Time-in-Grade Requirement for Retention of Grade
    Upon Voluntary Retirement.--Section 1370(d) of such title is amended by
    adding at the end the following new paragraph:

    [[Page 112 STAT. 2027]]

        ``(5) The Secretary of Defense may authorize the Secretary of a
    military department to reduce the 3-year period required by paragraph
    (3)(A) to a period not less than 2 years in the case of retirements
    effective during the period beginning on the date of the enactment of
    this paragraph and ending on September 30, 2001. The number of reserve
    commissioned officers of an armed force in the same grade for whom a
    reduction is made during any fiscal year in the period of service-in-
    grade otherwise required under this paragraph may not exceed the number
    equal to 2 percent of the strength authorized for that fiscal year for
    reserve commissioned officers of that armed force in an active status in
    that grade.''.
        (p) Affiliation With Guard and Reserve Units; Waiver of Certain
    Limitations.--Section 1150(a) of such title is amended by striking out
    ``during the nine-year period beginning on October 1, 1990'' and
    inserting in lieu thereof ``during the period beginning on October 1,
    1990, and ending on September 30, 2001''.
        (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such
    title is amended by striking out ``September 30, 1999'' and inserting in
    lieu thereof ``September 30, 2001''.

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

        (a) Authority.--Section 702 of title 10, United States Code, is
    amended--
                (1) by designating the second sentence of subsection (b) as
            subsection (d);
                (2) by redesignating subsection (b) as subsection (c); and
                (3) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) Involuntary Leave Without Pay for Suspended
    Academy Cadets and Midshipmen.--(1) Under regulations prescribed under
    subsection (d), the Secretary concerned may place an academy cadet or
    midshipman on involuntary leave for any period during which the
    Superintendent of the Academy at which the cadet or midshipman is
    admitted has suspended the cadet or midshipman from duty at the
    Academy--
                ``(A) pending separation from the Academy;
                ``(B) pending return to the Academy to repeat an academic
            semester or year; or
                ``(C) for other good cause.

        ``(2) A cadet or midshipman placed on involuntary leave under
    paragraph (1) is not entitled to any pay under section 230(c) of title
    37 for the period of the leave.
        ``(3) Return of an academy cadet or midshipman to a pay status at
    the Academy concerned from involuntary leave status under paragraph (1)
    does not restore any entitlement of the cadet or midshipman to pay for
    the period of the involuntary leave.''.
        (b) Definition.--Such section is further amended--
                (1) in subsection (c) (as redesignated by subsection
            (a)(2)), by striking out ``cadets at'' and all that follows
            through ``Naval Academy,'' and inserting in lieu thereof
            ``academy cadets or midshipmen''; and
                (2) by adding at the end the following new subsection:

        ``(e) Definition.--In this section, the term `academy cadet or
    midshipman' means--
                ``(1) a cadet of the United States Military Academy;

    [[Page 112 STAT. 2028]]

                ``(2) a midshipman of the United States Naval Academy;
                ``(3) a cadet of the United States Air Force Academy; or
                ``(4) a cadet of the United States Coast Guard Academy.''.

        (c) Subsection Headings.--Such section is further amended--
                (1) in subsection (a), by inserting ``Graduation
            Leave.--'' after ``(a)'';
                (2) in subsection (c) (as redesignated by subsection
            (a)(2)), by inserting ``Inapplicable Leave Provisions.--'' after
            ``(c)''; and
                (3) in subsection (d) (as designated by subsection (a)(1)),
            by inserting ``Regulations.--'' after ``(d)''.

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

        (a) Period of Eligibility.--Subsection (a) of section 1175 of title
    10, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(a)'';
                (2) by striking out ``, for the period of time the member
            serves in a reserve component''; and
                (3) by adding at the end the following:

        ``(2)(A) Except as provided in subparagraph (B), a financial
    incentive provided a member under this section shall be paid for the
    period equal to twice the number of years of service of the member,
    computed as provided in subsection (e)(5).
        ``(B) If, before the expiration of the period otherwise applicable
    under subparagraph (A) to a member receiving a financial incentive under
    this section, the member is separated from a reserve component or is
    transferred to the Retired Reserve, the period for payment of a
    financial incentive to the member under this section shall terminate on
    the date of the separation or transfer unless--
                ``(i) the separation or transfer is required by reason of
            the age or number of years of service of the member;
                ``(ii) the separation or transfer is required by reason of
            the failure of selection for promotion or the medical
            disqualification of the member, except in a case in which the
            Secretary of Defense or the Secretary of Transportation
            determines that the basis for the separation or transfer is a
            result of a deliberate action taken by the member with the
            intent to avoid retention in the Ready Reserve or Standby
            Reserve; or
                ``(iii) in the case of a separation, the member is separated
            from the reserve component for appointment or enlistment in or
            transfer to another reserve component of an armed force for
            service in the Ready Reserve or Standby Reserve of that armed
            force.''.

        (b) Repeal of Superseded Provision.--Subsection (e)(1) of such
    section is amended by striking out the second sentence.
        (c) Effective <<NOTE: 10 USC 1175 note.>>  Date.--The amendments
    made by this section apply with respect to any person provided a
    voluntary separation incentive under section 1175 of title 10, United
    States Code (whether before, on, or after the date of the enactment of
    this Act).

    [[Page 112 STAT. 2029]]

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

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

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

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

        (a) Increase in Maximum Rate for Active Component Montgomery GI Bill
    Supplement.--Section 3015(d) of title 38, United States Code, is
    amended--
                (1) by inserting ``, at the time the individual first
            becomes a member of the Armed Forces,'' after ``Secretary of
            Defense, may''; and
                (2) by striking out ``$400'' and all that follows through
            ``that date'' and inserting in lieu thereof ``$950 per month''.

        (b) Effective <<NOTE: 38 USC 3015 note.>>  Date.--The amendments
    made by subsection (a) shall take effect on October 1, 1998, and shall
    apply with respect to individuals who first become members of the Armed
    Forces on or after that date.

    SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

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

    [[Page 112 STAT. 2030]]

    SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

        (a) Conference on Practices Concerning Military Honors at Funerals
    for Veterans.--(1) The Secretary of Defense, in consultation with the
    Secretary of Veterans Affairs, shall convene and preside over a
    conference, to be completed not later than December 31, 1998, for the
    purpose of determining means of improving and increasing the
    availability of military funeral honors for veterans. The Secretary of
    Veterans Affairs shall also participate in the conference.
        (2) The Secretaries shall invite and encourage the participation at
    the conference of appropriate representatives of veterans service
    organizations.
        (3) The conference shall perform the following:
                (A) Review current policies and practices of the military
            departments and the Department of Veterans Affairs relating to
            the provision of military funeral honors for veterans.
                (B) Consider alternative methods for providing military
            funeral honors for veterans and develop new strategies for
            providing those honors.
                (C) Determine what resources may be available outside the
            Department of Defense that could be used to provide military
            funeral honors for veterans.
                (D) Analyze the costs associated with providing military
            funeral honors for veterans, including the costs associated with
            using personnel and other resources for that purpose.
                (E) Assess trends in the rate of death of veterans.
                (F) Propose, consider, and determine means of improving and
            increasing the availability of military funeral honors for
            veterans.

        (4) <<NOTE: Reports.>>  Not later than March 31, 1999, the Secretary
    of Defense shall submit to Congress a report on the conference. The
    report shall set forth any modifications to Department of Defense
    directives on military funeral honors adopted as a result of the
    conference and include any recommendations for legislation that the
    Secretary considers appropriate as a result of the conference.

        (b) Honor Guard Details at Funerals of Veterans.--(1) Chapter 75 of
    title 10, United States Code, is amended by adding at the end the
    following new section:

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

        ``(a) Availability.--The Secretary of a military department shall,
    upon request, provide an honor guard detail (or ensure that an honor
    guard detail is provided) for the funeral of any veteran that occurs
    after December 31, 1999.
        ``(b) Composition of Honor Guard Details.--The Secretary of each
    military department shall ensure that an honor guard detail for the
    funeral of a veteran consists of not less than three persons and (unless
    a bugler is part of the detail) has the capability to play a recorded
    version of Taps.
        ``(c) <<NOTE: Regulations.>>  Persons Forming Honor Guards.--An
    honor guard detail may consist of members of the armed forces or members
    of veterans organizations or other organizations approved for purposes
    of this section under regulations prescribed by the Secretary of
    Defense. The Secretary of a military department may provide
    transportation, or reimbursement for transportation, and expenses for a
    person who participates in an honor guard detail under this section and

    [[Page 112 STAT. 2031]]

    is not a member of the armed forces or an employee of the United States.

        ``(d) Regulations.--The Secretary of Defense shall by regulation
    establish a system for selection of units of the armed forces and other
    organizations to provide honor guard details. The system shall place an
    emphasis on balancing the funeral detail workload among the units and
    organizations providing honor guard details in an equitable manner as
    they are able to respond to requests for such details in terms of
    geographic proximity and available resources. The Secretary shall
    provide in such regulations that the armed force in which a veteran
    served shall not be considered to be a factor when selecting the
    military unit or other organization to provide an honor guard detail for
    the funeral of the veteran.
        ``(e) Annual Report.--The Secretary of Defense shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a report not later than January
    31 of each year beginning with 2001 and ending with 2005 on the
    experience of the Department of Defense under this section. Each such
    report shall provide data on the number of funerals supported under this
    section, the cost for that support, shown by manpower and other cost
    factors, and the number and costs of funerals supported by each
    participating organization. The data in the report shall be presented in
    a standard format, regardless of military department or other
    organization.
        ``(f ) Veteran Defined.--In this section, the term `veteran' has the
    meaning given that term in section 101(2) of title 38.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

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

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

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

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

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

        (d) Repeal of Limitation on Availability of Funds for Honor Guard
    Functions by National Guard.--Section 114 of title 32, United States
    Code, is amended--
                (1) by striking out ``(a)''; and
                (2) by striking out subsection (b).

        (e) Veterans Service Organization Defined.--In this section, the
    term ``veterans service organization'' means any organization recognized
    by the Secretary of Veterans Affairs under section 5902 of title 38,
    United States Code.

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

        Section 1303(c) of the Merchant Marine Act, 1936 <<NOTE: 46 USC app.
    1295b.>>  (46 U.S.C. App. 1295(c)), is amended--

    [[Page 112 STAT. 2032]]

                (1) by inserting ``(1)'' after ``(c)'';
                (2) by striking out ``may'' and inserting in lieu thereof
            ``shall''; and
                (3) by adding at the end the following:

        ``(2) The Secretary of the Navy shall provide for cadets of the
    Academy who are midshipmen in the United States Naval Reserve to be
    issued an identification card (referred to as a `military ID card') and
    to be entitled to all rights and privileges in accordance with the same
    eligibility criteria as apply to other members of the Ready Reserve of
    the reserve components of the Armed Forces.
        ``(3) The Secretary of the Navy shall carry out paragraphs (1) and
    (2) in coordination with the Secretary.''.

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

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

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

        (a) Entitlement Not Conditioned on Forfeiture of Spousal
    Compensation.--Subsection (d) of section 1059 of title 10, United States
    Code, is amended--
                (1) in paragraph (1)--
                        (A) by striking out ``(except as otherwise provided
                    in this subsection)''; and
                        (B) by inserting before the period the following:
                    ``, including an amount (determined under subsection (f
                    )(2)) for each, if any, dependent child of the
                    individual described in subsection (b) who resides in
                    the same household as that spouse or former spouse'';
                (2) in paragraph (2)--
                        (A) by striking out ``(but for subsection (g)) would
                    be eligible'' and inserting in lieu thereof ``is or, but
                    for subsection (g), would be eligible''; and
                        (B) by striking out ``such compensation'' and
                    inserting in lieu thereof ``compensation under this
                    section''; and
                (3) in paragraph (4), by striking out ``For purposes of
            paragraphs (2) and (3)'' and inserting in lieu thereof ``For
            purposes of this subsection''.

        (b) Amount of Payment.--Subsection (f )(2) of such section is
    amended by striking out ``has custody of a dependent child or children
    of the member'' and inserting in lieu thereof ``has custody of a
    dependent child of the member who resides in the same household as that
    spouse or former spouse''.
        (c) <<NOTE: 10 USC 1059 note.>>  Prospective Applicability.--No
    benefits shall accrue by reason of the amendments made by this section
    for any month that begins before the date of the enactment of this Act.

    [[Page 112 STAT. 2033]]

    SEC. 571. <<NOTE: 10 USC 520 note.>>  PILOT PROGRAM FOR TREATING GED AND
                HOME SCHOOL DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR
                DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT IN THE ARMED
                FORCES.

        (a) Program Required.--The Secretary of Defense shall establish a
    pilot program to assess whether the Armed Forces could better meet
    recruiting requirements by treating GED recipients and home school
    diploma recipients as having graduated from high school with a high
    school diploma for the purpose of determining the eligibility of those
    persons to enlist in the Armed Forces. The Secretary of each military
    department shall administer the pilot program for the Armed Force or
    armed forces under the jurisdiction of that Secretary.
        (b) Persons Eligible Under the Pilot Program as High School
    Graduates.--Under the pilot program, a person shall be treated as having
    graduated from high school with a high school diploma for the purpose
    described in subsection (a) if--
                (1) the person has completed a general education development
            program while participating in the National Guard Challenge
            Program under section 509 of title 32, United States Code, and
            is a GED recipient; or
                (2) the person is a home school diploma recipient and
            provides a transcript demonstrating completion of high school to
            the military department involved under the pilot program.

        (c) GED and Home School Diploma Recipients.--For the purposes of
    this section--
                (1) a person is a GED recipient if the person, after
            completing a general education development program, has obtained
            certification of high school equivalency by meeting State
            requirements and passing a State approved exam that is
            administered for the purpose of providing an appraisal of the
            person's achievement or performance in the broad subject matter
            areas usually required for high school graduates; and
                (2) a person is a home school diploma recipient if the
            person has received a diploma for completing a program of
            education through the high school level at a home school,
            without regard to whether the home school is treated as a
            private school under the law of the State in which located.

        (d) Annual Limit on Number.--Not more than 1,250 GED recipients and
    home school diploma recipients enlisted by an armed force during a
    fiscal year may be treated under the pilot program as having graduated
    from high school with a high school diploma.
        (e) Duration of Pilot Program.--The pilot program shall be in effect
    during the period beginning on October 1, 1998, and ending on September
    30, 2003.
        (f ) Report.--Not later than February 1, 2004, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report on the pilot program. The report shall include the following, set
    forth separately for GED recipients and home school diploma recipients:
                (1) The assessment of the Secretary of Defense, and any
            assessment of any of the Secretaries of the military
            departments, regarding the value of, and any necessity for,
            authority to treat GED recipients and home school diploma
            recipients as having graduated from high school with a high
            school

    [[Page 112 STAT. 2034]]

            diploma for the purpose of determining the eligibility of those
            persons to enlist in the Armed Forces.
                (2) A comparison (shown by armed force and by each fiscal
            year of the pilot program) of the performance of the persons who
            enlisted during the fiscal year as GED or home school diploma
            recipients treated under the pilot program as having graduated
            from high school with a high school diploma with the performance
            of the persons who enlisted in that armed force during the same
            fiscal year after having graduated from high school with a high
            school diploma, with respect to the following:
                        (A) Attrition.
                        (B) Discipline.
                        (C) Adaptability to military life.
                        (D) Aptitude for mastering the skills necessary for
                    technical specialties.
                        (E) Reenlistment rates.

        (g) State Defined.--For purposes of this section, the term ``State''
    includes the District of Columbia, the Commonwealth of Puerto Rico, and
    the territories of the United States.

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

        (a) Sense of Congress.--It is the sense of Congress that--
                (1) the New Parent Support Program that was begun as a pilot
            program of the Marine Corps at Camp Pendleton, California, has
            been an effective tool in curbing family violence within the
            military community;
                (2) such program is a model for future New Parent Support
            Programs throughout the Marine Corps, Navy, Army, and Air Force;
            and
                (3) in light of the pressures and strains placed upon
            military families and the benefits of the New Parent Support
            Program in helping ``at-risk'' families, the Department of
            Defense should seek ways to ensure that in future fiscal years
            funds are made available for New Parent Support Programs for the
            Army, Navy, Air Force, and Marine Corps in amounts sufficient to
            meet requirements for those programs.

        (b) Report.--Not later than 120 days after the date of the enactment
    of this Act, the Secretary of Defense shall submit to Congress a report
    on the New Parent Support Program of the Department of Defense. The
    Secretary shall include in the report the following:
                (1) A description of how the Army, Navy, Air Force, and
            Marine Corps are each implementing a New Parent Support Program
            and how each such program is organized.
                (2) A description of how the implementation of programs for
            the Army, Navy, and Air Force compare to the fully implemented
            Marine Corps program.
                (3) The number of installations that the four Armed Forces
            have each scheduled to receive support for the New Parent
            Support Program.
                (4) The number of installations delayed in providing the
            program.
                (5) The number of programs terminated.
                (6) The number of programs with reduced support.

    [[Page 112 STAT. 2035]]

                (7) The funding provided for those programs for each of the
            four Armed Forces for each of fiscal years 1994 through 1999 and
            the amount projected to be provided for those programs for
            fiscal year 2000 and, if the amount provided for any of those
            programs for any such year is less that the amount needed to
            fully fund that program for that year, an explanation of the
            reasons for the shortfall.

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

        (a) <<NOTE: President.>>  Authority.--The President is authorized to
    advance Lieutenant General Benjamin O. Davis, Junior, United States Air
    Force, retired, to the grade of general on the retired list of the Air
    Force.

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

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

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

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. Three-month extension of certain bonuses and special pay
               authorities for reserve forces.

    [[Page 112 STAT. 2036]]

    Sec. 612. Three-month extension of certain bonuses and special pay
               authorities for nurse officer candidates, registered nurses,
               and nurse anesthetists.
    Sec. 613. Three-month extension of authorities relating to payment of
               other bonuses and special pays.
    Sec. 614. Increased hazardous duty pay for aerial flight crewmembers in
               certain pay grades.
    Sec. 615. Aviation career incentive pay and aviation officer retention
               bonus.
    Sec. 616. Diving duty special pay for divers having diving duty as a
               nonprimary duty.
    Sec. 617. Hardship duty pay.
    Sec. 618. Selective reenlistment bonus eligibility for Reserve members
               performing active Guard and Reserve duty.
    Sec. 619. Repeal of 10 percent limitation on certain selective
               reenlistment bonuses.
    Sec. 620. Increase in maximum amount authorized for Army enlistment
               bonus.
    Sec. 621. Equitable treatment of Reserves eligible for special pay for
               duty subject to hostile fire or imminent danger.
    Sec. 622. Retention incentives initiative for critically short military
               occupational specialties.

                Subtitle C--Travel and Transportation Allowances

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

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

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

                            Subtitle E--Other Matters

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

                         Subtitle A--Pay and Allowances

    SEC. 601. <<NOTE: 37 USC 1009 note.>>  INCREASE IN BASIC PAY FOR FISCAL
                YEAR 1999.

        (a) Waiver of Section 1009 Adjustment.--Except as provided in
    subsection (b), the adjustment to become effective during fiscal year
    1999 required by section 1009 of title 37, United States Code, in the
    rate of monthly basic pay authorized members of the uniformed services
    by section 203(a) of such title shall not be made.

    [[Page 112 STAT. 2037]]

        (b) Increase in Basic Pay.--Effective on January 1, 1999, the rates
    of basic pay of members of the uniformed services shall be increased by
    the greater of--
                (1) 3.6 percent; or
                (2) the percentage increase determined under subsection (c)
            of section 1009 of title 37, United States Code, by which the
            monthly basic pay of members would be adjusted under subsection
            (a) of that section on that date in the absence of subsection
            (a) of this section.

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

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

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

        (a) Payment of Certain Expenses Related to Overseas Housing.--
    Section 403(c) of title 37, United States Code, is amended by adding at
    the end the following new paragraph:
        ``(3)(A) In the case of a member of the uniformed services
    authorized to receive an allowance under paragraph (1), the Secretary
    concerned may make a lump-sum payment to the member for required
    deposits and advance rent, and for expenses relating thereto, that are--
                ``(i) incurred by the member in occupying private housing
            outside of the United States; and
                ``(ii) authorized or approved under regulations prescribed
            by the Secretary concerned.

        ``(B) Expenses for which a member may be reimbursed under this
    paragraph may include losses relating to housing that are sustained by
    the member as a result of fluctuations in the relative value of the
    currencies of the United States and the foreign country in which the
    housing is located.
        ``(C) The Secretary concerned shall recoup the full amount of any
    deposit or advance rent payments made by the Secretary under
    subparagraph (A), including any gain resulting from currency
    fluctuations between the time of payment and the time of recoupment.''.
        (b) Conforming Amendment.--Section 405 of title 37, United States
    Code, is amended by striking out subsection (c).
        (c) <<NOTE: 37 USC 403 note.>>  Retroactive Application.--The
    reimbursement authority provided by section 403(c)(3)(B) of title 37,
    United States Code, as added by subsection (a), applies with respect to
    losses relating to housing that are sustained, on or after July 1, 1997,
    by a member of the uniformed services as a result of fluctuations in the
    relative value of the currencies of the United States and the foreign
    country in which the housing is located.

    SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

        (a) In General.--Section 402 of title 37, United States Code, is
    amended--
                (1) by redesignating subsections (e) and (f ) as subsections
            (f ) and (g), respectively; and

    [[Page 112 STAT. 2038]]

                (2) by inserting after subsection (d) the following new
            subsection:

        ``(e) Special Rule for Certain Enlisted Reserve Members.--Unless
    entitled to basic pay under section 204 of this title, an enlisted
    member of a reserve component may receive, at the discretion of the
    Secretary concerned, rations in kind, or a part thereof, when the
    member's instruction or duty periods, as described in section 206(a) of
    this title, total at least 8 hours in a calendar day. The Secretary
    concerned may provide an enlisted member who could be provided rations
    in kind under the preceding sentence with a commutation when rations in
    kind are not available.''.
        (b) Application During Transitional Period.--Section 602(d)(1) of
    the National Defense Authorization Act for Fiscal Year 1998 (Public Law
    105-85; 37 U.S.C. 402 note) is amended by adding at the end the
    following new subparagraph:
                        ``(D) Special rule for certain enlisted reserve
                    members.--Unless entitled to basic pay under section 204
                    of title 37, United States Code, an enlisted member of a
                    reserve component (as defined in section 101(24) of such
                    title) may receive, at the discretion of the Secretary
                    concerned (as defined in section 101(5) of such title),
                    rations in kind, or a part thereof, when the member's
                    instruction or duty periods (as described in section
                    206(a) of such title) total at least 8 hours in a
                    calendar day. The Secretary concerned may provide an
                    enlisted member who could be provided rations in kind
                    under the preceding sentence with a commutation when
                    rations in kind are not available.''.

               Subtitle B--Bonuses and Special and Incentive Pays

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

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

    [[Page 112 STAT. 2039]]

    by striking out ``September 30, 1999'' and inserting in lieu thereof
    ``December 31, 1999''.
        (h) Repayment of Education Loans for Certain Health Professionals
    Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United
    States Code, is amended by striking out ``October 1, 1999'' and
    inserting in lieu thereof ``January 1, 2000''.

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

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

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

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

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

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

    [[Page 112 STAT. 2040]]

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

        (b) <<NOTE: 37 USC 301 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on October 1, 1998, and shall apply
    with respect to months beginning on or after that date.

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

        (a) Definition of Aviation Service.--(1) Section 301a(a)(6) of title
    37, United States Code, is amended--
                (A) by redesignating subparagraphs (A), (B), and (C) as
            subparagraphs (B), (C), and (D), respectively; and
                (B) by inserting before subparagraph (B) (as so
            redesignated) the following new subparagraph:
                ``(A) The term `aviation service' means service performed by
            an officer (except a flight surgeon or other medical officer)
            while holding an aeronautical rating or designation or while in
            training to receive an aeronautical rating or designation.''.

        (2) Section 301b( j) of such title is amended by striking out
    paragraph (1) and inserting in lieu thereof the following new paragraph:
                ``(1) The term `aviation service' means service performed by
            an officer (except a flight surgeon or other medical officer)
            while holding an aeronautical rating or designation or while in
            training to receive an aeronautical rating or designation.''.

        (b) Amount of Incentive Pay.--Subsection (b) of section 301a of such
    title is amended to read as follows:
        ``(b)(1) A member who satisfies the requirements described in
    subsection (a) is entitled to monthly incentive pay as follows:

    ``Years of aviation service (iMonthly...................................
      flight training) as an officrate......................................
            2 or less.................................................  $125
            Over 2....................................................  $156
            Over 3....................................................  $188
            Over 4....................................................  $206
            Over 6....................................................  $650
            Over 14...................................................  $840
            Over 22...................................................  $585
            Over 23...................................................  $495
            Over 24...................................................  $385
            Over 25...................................................  $250

        ``(2) An officer in a pay grade above O-6 is entitled, until the
    officer completes 25 years of aviation service, to be paid at the rates
    set forth in the table in paragraph (1), except that--
                ``(A) an officer in pay grade O-7 may not be paid at a rate
            greater than $200 a month; and
                ``(B) an officer in pay grade O-8 or above may not be paid
            at a rate greater than $206 a month.

        ``(3) For a warrant officer with over 22, 23, 24, or 25 years of
    aviation service who is qualified under subsection (a), the rate
    prescribed in the table in paragraph (1) for officers with over 14 years
    of aviation service shall continue to apply to the warrant officer.''.
        (c) References to Aviation Service.--(1) Section 301a of such title
    is further amended--

    [[Page 112 STAT. 2041]]

                (A) in subsection (a)(4)--
                        (i) by striking out ``22 years of the officer's
                    service as an officer'' and inserting in lieu thereof
                    ``22 years of aviation service of the officer''; and
                        (ii) by striking out ``25 years of service as an
                    officer (as computed under section 205 of this title)''
                    and inserting in lieu thereof ``25 years of aviation
                    service''; and
                (B) in subsection (d), by striking out ``subsection (b)(1)
            or (2), as the case may be, for the performance of that duty by
            a member of corresponding years of aviation or officer service,
            as appropriate,'' and inserting in lieu thereof ``subsection (b)
            for the performance of that duty by a member with corresponding
            years of aviation service''.

        (2) Section 301b(b)(5) of such title is amended by striking out
    ``active duty'' and inserting in lieu thereof ``aviation service''.
        (d) Conforming Amendment.--Section 615 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
    1787) <<NOTE: 37 USC 301a and note.>>  is repealed.

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

        (a) Eligibility for Maintaining Proficiency.--Section 304(a)(3) of
    title 37, United States Code, is amended to read as follows:
                ``(3) either--
                        ``(A) actually performs diving duty while serving in
                    an assignment for which diving is a primary duty; or
                        ``(B) meets the requirements to maintain proficiency
                    as described in paragraph (2) while serving in an
                    assignment that includes diving duty other than as a
                    primary duty.''.

        (b) <<NOTE: 37 USC 304 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on October 1, 1998, and shall apply
    with respect to months beginning on or after that date.

    SEC. 617. HARDSHIP DUTY PAY.

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

        (b) Conforming Amendment.--Section 907(d) of such title is amended
    by striking out ``duty at a hardship duty location'' and inserting in
    lieu thereof ``hardship duty''.
        (c) Clerical Amendments.--(1) The heading for section 305 of such
    title is amended to read as follows:

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

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

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

    [[Page 112 STAT. 2042]]

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

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

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

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

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

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

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

        Section 310(b) of title 37, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) A member of a reserve component who is eligible for special
    pay under this section for a month shall receive the full amount
    authorized in subsection (a) for that month regardless of the number of
    days during that month on which the member satisfies the eligibility
    criteria specified in such subsection.''.

    SEC. 622. <<NOTE: 37 USC 301 note.>>  RETENTION INCENTIVES INITIATIVE
                FOR CRITICALLY SHORT MILITARY OCCUPATIONAL SPECIALTIES.

        (a) Requirement for New Incentives.--The Secretary of Defense shall
    establish and provide for members of the Armed Forces qualified in
    critically short military occupational specialties a series of new
    incentives that the Secretary considers potentially effective for
    increasing the rates at which those members are retained in the Armed
    Forces for service in such specialties.
        (b) Critically Short Military Occupational Specialties.--For the
    purposes of this section, a military occupational specialty is a
    critically short military occupational specialty for an Armed Force if
    the number of members retained in that Armed Force in fiscal year 1998
    for service in that specialty is less than 50 percent of the number of
    members of that Armed Force that were projected to be retained in that
    Armed Force for service in the specialty by the Secretary of the
    military department concerned as of October 1, 1997.
        (c) Incentives.--It is the sense of Congress that, among the new
    incentives established and provided under this section, the Secretary of
    Defense should include the following incentives:
                (1) Family support and leave allowances.
                (2) Increased special reenlistment or retention bonuses.

    [[Page 112 STAT. 2043]]

                (3) Repayment of educational loans.
                (4) Priority of selection for assignment to preferred
            permanent duty station or for extension at permanent duty
            station.
                (5) Modified leave policies.
                (6) Special consideration for Government housing or
            additional housing allowances.

        (d) Relationship to Other Incentives.--Incentives provided under
    this section are in addition to any special pay or other benefit that is
    authorized under any other provision of law.
        (e) Reports.--(1) Not later than December 1, 1998, the Secretary of
    Defense shall submit to the congressional defense committees a report
    that identifies, for each of the Armed Forces, the critically short
    military occupational specialties to which incentives under this section
    are to apply.
        (2) Not later than April 15, 1999, the Secretary of Defense shall
    submit to the congressional defense committees a report that specifies,
    for each of the Armed Forces, the incentives that are to be provided
    under this section.

                Subtitle C--Travel and Transportation Allowances

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

        (a) Monetary Allowance Authorized.--Subsection (b)(1) of section 406
    of title 37, United States Code, is amended--
                (1) in subparagraph (A)--
                        (A) by striking out ``, or reimbursement
                    therefor,''; and
                        (B) by inserting after the second sentence the
                    following new sentence: ``Alternatively, the member may
                    be paid reimbursement or a monetary allowance under
                    subparagraph (F).''; and
                (2) by adding at the end the following new subparagraph:

        ``(F) A member entitled to transportation of baggage and household
    effects under subparagraph (A) may, as an alternative to the provision
    of transportation, be paid reimbursement or, at the member's request, a
    monetary allowance in advance for the cost of transportation of the
    baggage and household effects. The monetary allowance may be paid only
    if the amount of the allowance does not exceed the cost that would be
    incurred by the Government under subparagraph (A) for the transportation
    of the baggage and household effects. Appropriations available to the
    Department of Defense, the Department of Transportation, and the
    Department of Health and Human Services for providing transportation of
    baggage or household effects of members of the uniformed services shall
    be available to pay a reimbursement or monetary allowance under this
    subparagraph. The Secretary concerned may prescribe the manner in which
    the risk of liability for damage, destruction, or loss of baggage or
    household effects arranged, packed, crated, or loaded by a member is
    allocated among the member, the United States, and any contractor when a
    reimbursement or monetary allowance is elected under this
    subparagraph.''.
        (b) Repeal of Superseded Provision.--(1) Such section is further
    amended--
                (A) by striking out subsection ( j); and

    [[Page 112 STAT. 2044]]

                (B) by redesignating subsections (k), (l), and (m) as
            subsections ( j), (k), and (l), respectively.

        (2) Section 2634(d) of title 10, United States Code, is amended by
    striking out ``section 406(k)'' and inserting in lieu thereof ``section
    406( j)''.

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

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

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

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

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

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

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

    SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

        Section 430(b) of title 37, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) At the option of the member, in lieu of the transportation of
    baggage of a dependent child under paragraph (1) from the dependent's
    school in the continental United States, the Secretary concerned may pay
    or reimburse the member for costs incurred to store the baggage at or in
    the vicinity of the school during the dependent's annual trip between
    the school and the member's duty station. The amount of the payment or
    reimbursement may not exceed the cost that the Government would incur to
    transport the baggage.''.

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

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

    [[Page 112 STAT. 2045]]

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

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

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

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

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

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

    SEC. 642. <<NOTE: 10 USC 1448 note.>>  SURVIVOR BENEFIT PLAN OPEN
                ENROLLMENT PERIOD.

        (a) Persons Not Currently Participating in Survivor Benefit Plan.--
                (1) Election of sbp coverage.--An eligible retired or former
            member may elect to participate in the Survivor Benefit Plan
            during the open enrollment period specified in subsection (d).
                (2) Election of supplemental annuity coverage.--An eligible
            retired or former member who elects under paragraph (1) to
            participate in the Survivor Benefit Plan may also elect during
            the open enrollment period to participate in the Supplemental
            Survivor Benefit Plan.

    [[Page 112 STAT. 2046]]

                (3) Eligible retired or former member.--For purposes of
            paragraphs (1) and (2), an eligible retired or former member is
            a member or former member of the uniformed services who on the
            day before the first day of the open enrollment period is not a
            participant in the Survivor Benefit Plan and--
                        (A) is entitled to retired pay; or
                        (B) would be entitled to retired pay under chapter
                    1223 of title 10, United States Code (or chapter 67 of
                    such title as in effect before October 5, 1994), but for
                    the fact that such member or former member is under 60
                    years of age.
                (4) Status under sbp of persons making elections.--
                        (A) Standard annuity.--A person making an election
                    under paragraph (1) by reason of eligibility under
                    paragraph (3)(A) shall be treated for all purposes as
                    providing a standard annuity under the Survivor Benefit
                    Plan.
                        (B) Reserve-component annuity.--A person making an
                    election under paragraph (1) by reason of eligibility
                    under paragraph (3)(B) shall be treated for all purposes
                    as providing a reserve-component annuity under the
                    Survivor Benefit Plan.

        (b) Manner of Making Elections.--
                (1) In general.--An election under this section must be made
            in writing, signed by the person making the election, and
            received by the Secretary concerned before the end of the open
            enrollment period. Except as provided in paragraph (2), any such
            election shall be made subject to the same conditions, and with
            the same opportunities for designation of beneficiaries and
            specification of base amount, that apply under the Survivor
            Benefit Plan or the Supplemental Survivor Benefit Plan, as the
            case may be. A person making an election under subsection (a) to
            provide a reserve-component annuity shall make a designation
            described in section 1448(e) of title 10, United States Code.
                (2) Election must be voluntary.--An election under this
            section is not effective unless the person making the election
            declares the election to be voluntary. An election to
            participate in the Survivor Benefit Plan under this section may
            not be required by any court. An election to participate or not
            to participate in the Survivor Benefit Plan is not subject to
            the concurrence of a spouse or former spouse of the person.

        (c) Effective Date for Elections.--Any such election shall be
    effective as of the first day of the first calendar month following the
    month in which the election is received by the Secretary concerned.
        (d) Open Enrollment Period Defined.--The open enrollment period is
    the 1-year period beginning on March 1, 1999.
        (e) Effect of Death of Person Making Election Within Two Years of
    Making Election.--If a person making an election under this section dies
    before the end of the 2-year period beginning on the effective date of
    the election, the election is void and the amount of any reduction in
    retired pay of the person that is attributable to the election shall be
    paid in a lump sum to the person who would have been the deceased
    person's beneficiary under the voided election if the deceased person
    had died after the end of such 2-year period.

    [[Page 112 STAT. 2047]]

        (f ) Applicability of Certain Provisions of Law.--The provisions of
    sections 1449, 1453, and 1454 of title 10, United States Code, are
    applicable to a person making an election, and to an election, under
    this section in the same manner as if the election were made under the
    Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the
    case may be.
        (g) Premiums for Open Enrollment Election.--
                (1) <<NOTE: Regulations.>>  Premiums to be charged.--The
            Secretary of Defense shall prescribe in regulations premiums
            which a person electing under this section shall be required to
            pay for participating in the Survivor Benefit Plan pursuant to
            the election. The total amount of the premiums to be paid by a
            person under the regulations shall be equal to the sum of--
                        (A) the total amount by which the retired pay of the
                    person would have been reduced before the effective date
                    of the election if the person had elected to participate
                    in the Survivor Benefit Plan (for the same base amount
                    specified in the election) at the first opportunity that
                    was afforded the member to participate under chapter 73
                    of title 10, United States Code;
                        (B) interest on the amounts by which the retired pay
                    of the person would have been so reduced, computed from
                    the dates on which the retired pay would have been so
                    reduced at such rate or rates and according to such
                    methodology as the Secretary of Defense determines
                    reasonable; and
                        (C) any additional amount that the Secretary
                    determines necessary to protect the actuarial soundness
                    of the Department of Defense Military Retirement Fund
                    against any increased risk for the fund that is
                    associated with the election.
                (2) Premiums to be credited to retirement fund.--Premiums
            paid under the regulations shall be credited to the Department
            of Defense Military Retirement Fund.

        (h) Definitions.--In this section:
                (1) The term ``Survivor Benefit Plan'' means the program
            established under subchapter II of chapter 73 of title 10,
            United States Code.
                (2) The term ``Supplemental Survivor Benefit Plan'' means
            the program established under subchapter III of chapter 73 of
            title 10, United States Code.
                (3) The term ``retired pay'' includes retainer pay paid
            under section 6330 of title 10, United States Code.
                (4) The terms ``uniformed services'' and ``Secretary
            concerned'' have the meanings given those terms in section 101
            of title 37, United States Code.
                (5) The term ``Department of Defense Military Retirement
            Fund'' means the Department of Defense Military Retirement Fund
            established under section 1461(a) of title 10, United States
            Code.

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

        (a) Elimination of Disparity in Effective Date Provisions.--Section
    1448(b)(3) of title 10, United States Code, is
    amended--

    [[Page 112 STAT. 2048]]

                (1) in subparagraph (C)--
                        (A) by striking out the second sentence; and
                        (B) by striking out ``effective date,'' in the
                    heading; and
                (2) by adding at the end the following new subparagraph:
                        ``(E) Effective date of election.--An election under
                    this paragraph is effective as of--
                              ``(i) the first day of the first month
                          following the month in which the election is
                          received by the Secretary concerned; or
                              ``(ii) in the case of a person required (as
                          described in section 1450(f )(3)(B) of this title)
                          to make the election by reason of a court order or
                          filing the date of which is on or after the date
                          of the enactment of the subparagraph, the first
                          day of the first month which begins after the date
                          of that court order or filing.''.

        (b) Conformity by Cross Reference.--Section 1450(f )(3)(D) of such
    title is amended by striking out ``the first day of the first month
    which begins after the date of the court order or filing involved'' and
    inserting in lieu thereof ``the day referred to in section
    1448(b)(3)(E)(ii) of this title''.

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

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

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

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

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

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

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

        ``(a) Presentation of Flag.--Upon the release of a member of the
    Navy or Marine Corps from active duty for retirement or transfer to the
    Fleet Reserve or the Fleet Marine Corps Reserve, the Secretary of the
    Navy shall present a United States flag to the member.
        ``(b) Multiple Presentations Not Authorized.--A member is not
    eligible for a presentation of a flag under subsection (a) if the member
    has previously been presented a flag under this

    [[Page 112 STAT. 2049]]

    section or section 3681 or 8681 of this title or section 516 of title
    14.
        ``(c) No Cost to Recipient.--The presentation of a flag under this
    section shall be at no cost to the recipient.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting before the item relating to section 6151 the
    following new item:

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

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

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

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

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

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

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

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

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

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

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

        (a) In General.--Paragraph (7) of section 1481(a) of title 10,
    United States Code, is amended to read as follows:
                ``(7) A person who--

    [[Page 112 STAT. 2050]]

                        ``(A) dies as a retired member of an armed force
                    under the Secretary's jurisdiction during a continuous
                    hospitalization of the member as a patient in a United
                    States hospital that began while the member was on
                    active duty for a period of more than 30 days; or
                        ``(B) is not covered by subparagraph (A) and, while
                    in a retired status by reason of eligibility to retire
                    under chapter 61 of this title, dies during a continuous
                    hospitalization of the person that began while the
                    person was on active duty as a Regular of an armed force
                    under the Secretary's jurisdiction.''.

        (b) Repeal of Obsolete Terminology.--Paragraph (1) of such section
    is amended by striking out ``, or a member of an armed force without
    component,''.
        (c) <<NOTE: 10 USC 1481 note.>>  Effective Date.--The amendment made
    by subsection (a) applies with respect to deaths occurring on or after
    the date of the enactment of this Act.

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

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

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

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

    [[Page 112 STAT. 2051]]

                            Subtitle E--Other Matters

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

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

    SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

        Section 1006(e) of title 37, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(e)''; and
                (2) by adding at the end the following new paragraph:

        ``(2)(A) Notwithstanding any other provision of law, an obligation
    for an advance of pay made pursuant to this section shall be recorded as
    an obligation only in the fiscal year in which the entitlement of the
    member to the pay accrues.
        ``(B) Current appropriations available for advance payments under
    this section may be transferred to the prior fiscal year appropriation
    available for the same purpose in the amount of any unliquidated advance
    payments that remain at the end of such prior fiscal year. Such
    unliquidated advance payments shall then be credited to the current
    appropriation.''.

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

        (a) Transportation in Connection With Change of Permanent Station.--
    Section 2634 of title 10, United States Code, is amended--
                (1) by redesignating subsection (g) as subsection (h); and
                (2) by inserting after subsection (f ) the following new
            subsection:

        ``(g) If a motor vehicle of a member (or a dependent of the member)
    that is transported at the expense of the United States under this
    section does not arrive at the authorized destination of the vehicle by
    the designated delivery date, the Secretary concerned shall reimburse
    the member for expenses incurred after that date to rent a motor vehicle
    for the member's use, or for the use of the dependent for whom the
    delayed vehicle was transported. The amount reimbursed may not exceed
    $30 per day, and the rental period for which reimbursement may be
    provided expires after 7 days or on the date on which the delayed
    vehicle arrives at the authorized destination (whichever occurs
    first).''.
        (b) Transportation in Connection With Other Moves.--Section 406(h)
    of title 37, United States Code, is amended by adding at the end the
    following new paragraph:
        ``(3) If a motor vehicle of a member (or a dependent of the member)
    that is transported at the expense of the United States under this
    subsection does not arrive at the authorized destination of the vehicle
    by the designated delivery date, the Secretary concerned shall reimburse
    the member for expenses incurred after that date to rent a motor vehicle
    for the dependent's use. The amount reimbursed may not exceed $30 per
    day, and the rental period for which reimbursement may be provided
    expires after 7 days or on the date on which the delayed vehicle arrives
    at the authorized destination (whichever occurs first).''.

    [[Page 112 STAT. 2052]]

        (c) Transportation in Connection With Departure Allowances for
    Dependents.--Section 405a(b) of title 37, United States Code, is
    amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) If a motor vehicle of a member (or a dependent of the member)
    that is transported at the expense of the United States under paragraph
    (1) does not arrive at the authorized destination of the vehicle by the
    designated delivery date, the Secretary concerned shall reimburse the
    member for expenses incurred after that date to rent a motor vehicle for
    the dependent's use. The amount reimbursed may not exceed $30 per day,
    and the rental period for which reimbursement may be provided expires
    after 7 days or on the date on which the delayed vehicle arrives at the
    authorized destination (whichever occurs first).''.
        (d) Transportation in Connection With Effects of Missing Persons.--
    Section 554 of title 37, United States Code, is amended--
                (1) by redesignating subsection (i) as subsection ( j); and
                (2) by inserting after subsection (h) the following new
            subsection:

        ``(i) If a motor vehicle of a member (or a dependent of the member)
    that is transported at the expense of the United States under this
    section does not arrive at the authorized destination of the vehicle by
    the designated delivery date, the Secretary concerned shall reimburse
    the dependent for expenses incurred after that date to rent a motor
    vehicle for the dependent's use. The amount reimbursed may not exceed
    $30 per day, and the rental period for which reimbursement may be
    provided expires after 7 days or on the date on which the delayed
    vehicle arrives at the authorized destination (whichever occurs
    first).''.
        (e) <<NOTE: 10 USC 2634 note.>>  Application of Amendments.--(1)
    Reimbursement for motor vehicle rental expenses may not be provided
    under the amendments made by this section until after the date on which
    the Secretary of Defense submits to Congress a report containing a
    certification that the Department of Defense has in place and
    operational a system to recover the cost of providing such reimbursement
    from commercial carriers that are responsible for the delay in the
    delivery of the motor vehicles of members of the Armed Forces and their
    dependents. <<NOTE: Reports.>>  The Secretary of Defense shall prepare
    the report in consultation with the Secretary of Transportation, with
    respect to the Coast Guard.

        (2) The amendments shall apply with respect to rental expenses
    described in such amendments that are incurred on or after the date of
    the submission of the report. The report shall be submitted not later
    than six months after the date of the enactment of this Act and shall
    include, in addition to the certification, a description of the system
    to be used to recover from commercial carriers the costs incurred under
    such amendments.

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

        (a) Eligible Persons.--Subsection (b)(2) of section 16302 of title
    10, United States Code, is amended by inserting ``, or is enrolled in a
    program of education leading to professional qualifications,'' after
    ``possesses professional qualifications''.

    [[Page 112 STAT. 2053]]

        (b) Increased Benefits.--Subsection (c) of such section is amended--
                (1) in paragraph (2), by striking out ``$3,000'' and
            inserting in lieu thereof ``$20,000''; and
                (2) in paragraph (3), by striking out ``$20,000'' and
            inserting in lieu thereof ``$50,000''.

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

        (a) Periods of Coverage.--Subsection (a)(2) of section 8140 of title
    5, United States Code, is amended to read as follows:
                ``(2) during the period of the member's attendance at
            training or a practice cruise under chapter 103 of title 10,
            United States Code, beginning when the authorized travel to the
            training or practice cruise begins and ending when authorized
            travel from the training or practice cruise ends.''.

        (b) Line of Duty.--Subsection (b) of such section is amended to read
    as follows:
        ``(b) For the purpose of this section, an injury, disability, death,
    or illness of a member referred to in subsection (a) may be considered
    as incurred or contracted in line of duty only if the injury,
    disability, or death is incurred, or the illness is contracted, by the
    member during a period described in that subsection. Subject to review
    by the Secretary of Labor, the Secretary of the military department
    concerned (under regulations prescribed by that Secretary), shall
    determine whether an injury, disability, or death was incurred, or an
    illness was contracted, by a member in line of duty.''.
        (c) Clarification of Casualties Covered.--Subsection (a) of such
    section, as amended by subsection (a) of this section, is further
    amended by inserting ``, or an illness contracted,'' after ``death
    incurred'' in the matter preceding paragraph (1).
        (d) <<NOTE: 5 USC 8140 note.>>  Effective Date and Applicability.--
    The amendments made by subsections (a) and (b) shall take effect on the
    date of the enactment of this Act and apply with respect to injuries,
    illnesses, disabilities, and deaths incurred or contracted on or after
    that date.

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

        (a) Enlistement Bonuses and GI Bill Supplement Not Exclusive.--
    Section 3015(d) of title 38, United States Code, is amended--
                (1) by inserting ``(1)'' after ``(d)''; and
                (2) by adding at the end the following:

        ``(2) In the case of an individual who after October 7, 1997,
    receives an enlistment bonus under section 308a or 308f of title 37,
    receipt of that bonus does not affect the eligibility of that individual
    for an increase under paragraph (1) in the rate of the basic educational
    assistance allowance applicable to that individual, and the Secretary
    concerned may provide such an increase for that individual (and enter
    into an agreement with that individual that the United States agrees to
    make payments pursuant to such an increase) without regard to any
    provision of law (enacted before,

    [[Page 112 STAT. 2054]]

    on, or after the date of the enactment of this paragraph) that limits
    the authority to make such payments.''.
        (b) Repeal of Related Limitations.--(1) Section 8013(a) of the
    Department of Defense Appropriations Act, 1998 (111 Stat. 1222), is
    amended--
                (A) by striking out ``on or after the date of enactment of
            this Act--'' and all that follows through ``nor shall any
            amounts'' and inserting in lieu thereof ``after October 7, 1997,
            enlists in the armed services for a period of active duty of
            less than three years, nor shall any amounts''; and
                (B) in the first proviso, by striking out ``in the case of a
            member covered by clause (1),''.

        (2) Section 8013(a) of the Department of Defense Appropriations Act,
    1999, is amended--
                (A) by striking out ``of this Act--'' and all that follows
            through ``nor shall any amounts'' and inserting in lieu thereof
            ``of this Act, enlists in the armed services for a period of
            active duty of less than 3 years, nor shall any amounts''; and
                (B) in the first proviso, by striking out ``in the case of a
            member covered by clause (1),''.

        (3) The amendments made by paragraph (2) shall take effect on the
    later of the following:
                (A) The date of the enactment of this Act.
                (B) The date of the enactment of the Department of Defense
            Appropriations Act, 1999.

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

        Section 1407(b) of the Defense Dependents' Education Act of 1978 (20
    U.S.C. 926(b)) is amended--
                (1) by striking out ``(b) Under such circumstances as he may
            by regulation prescribe, the Secretary of Defense'' and
            inserting in lieu thereof ``(b) Tuition and Assistance When
            Schools Unavailable.--(1) Under such circumstances as the
            Secretary of Defense may prescribe in regulations, the
            Secretary''; and
                (2) by adding at the end the following new paragraph:

        ``(2)(A) The Secretary of Defense, and the Secretary of
    Transportation with respect to the Coast Guard when it is not operating
    as a service of the Navy, may provide financial assistance to sponsors
    of dependents in overseas areas where schools operated by the Secretary
    of Defense under subsection (a) are not reasonably available in order to
    assist the sponsors to defray the costs incurred by the sponsors for the
    attendance of the dependents at schools in such areas other than schools
    operated by the Secretary of Defense.
        ``(B) <<NOTE: Regulations.>>  The Secretary of Defense and the
    Secretary of Transportation shall each prescribe regulations relating to
    the availability of financial assistance under subparagraph (A). Such
    regulations shall, to the maximum extent practicable, be consistent with
    Department of State regulations relating to the availability of
    financial assistance for the education of dependents of Department of
    State personnel overseas.''.

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

        (a) Eligibile Survivors.--Subsection (b) of section 657 of the
    National Defense Authorization Act for Fiscal Year 1997 (Public

    [[Page 112 STAT. 2055]]

    Law 104-201; 110 Stat. 2585) is amended by adding at the end the
    following new paragraphs:
                ``(3) If there is no surviving spouse or surviving child, to
            the parents of the decedent, in equal shares, or, if one parent
            of the decedent has died, to the surviving parent.
                ``(4) If there is no surviving spouse, surviving child, or
            surviving parent, to the surviving siblings by blood of the
            decedent, in equal shares.''.

        (b) Permitted Recipients of Payment Disbursement.--
    Subsection (f )(1) of such section is amended by striking out ``The
    actual disbursement'' and inserting in lieu thereof ``Notwithstanding
    any agreement (including a power of attorney) to the contrary, the
    actual disbursement''.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

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

                           Subtitle B--TRICARE Program

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

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

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

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

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

                            Subtitle E--Other Matters

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

    [[Page 112 STAT. 2056]]

                        Subtitle A--Health Care Services

    SEC. 701. DEPENDENTS' DENTAL PROGRAM.

        (a) Premium Increase.--Section 1076a(b)(2) of title 10, United
    States Code, is amended--
                (A) by inserting ``(A)'' after ``(2)''; and
                (B) by adding at the end the following:

        ``(B) Effective as of January 1 of each year, the amount of the
    premium required under subparagraph (A) shall be increased by the
    percent equal to the lesser of--
                ``(i) the percent by which the rates of basic pay of members
            of the uniformed services are increased on such date; or
                ``(ii) the sum of one-half percent and the percent computed
            under section 5303(a) of title 5 for the increase in rates of
            basic pay for statutory pay systems for pay periods beginning on
            or after such date.''.

        (2) <<NOTE: 10 USC 1076a note.>>  The amendment made by subparagraph
    (B) of paragraph (1) shall take effect on January 1, 1999, and shall
    apply to months after 1998 as if such subparagraph had been in effect
    since December 31, 1993.

        (b) Limitation on Reduction of Benefits.--Section 1076a is further
    amended by adding at the end the following new subsection:
        ``( j) Limitation on Reduction of Benefits.--The Secretary of
    Defense may not reduce benefits provided under this section until--
                ``(1) <<NOTE: Notice.>>  the Secretary provides notice of
            the Secretary's intent to reduce such benefits to the Committee
            on National Security of the House of Representatives and the
            Committee on Armed Services of the Senate; and
                ``(2) 1 year has elapsed following the date of such
            notice.''.

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

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

        (b) Conforming Amendment.--Subsection (f )(3) of such section is
    amended by striking out ``(b)(4)'' and inserting in lieu thereof
    ``(b)(5)''.

    [[Page 112 STAT. 2057]]

    SEC. 703. <<NOTE: 10 USC 1073 note.>>  PLAN FOR REDESIGN OF MILITARY
                PHARMACY SYSTEM.

        (a) Plan Required.--The Secretary of Defense shall submit to
    Congress a plan that would provide for a system-wide redesign of the
    military and contractor retail and mail-order pharmacy system of the
    Department of Defense by incorporating ``best business practices'' of
    the private sector. The Secretary shall work with contractors of TRICARE
    retail pharmacy and national mail-order pharmacy programs to develop a
    plan for the redesign of the pharmacy system that--
                (1) may include a plan for an incentive-based formulary for
            military medical treatment facilities and contractors of TRICARE
            retail pharmacies and the national mail-order pharmacy; and
                (2) shall include a plan for each of the following:
                        (A) A uniform formulary for such facilities and
                    contractors.
                        (B) A centralized database that integrates the
                    patient databases of pharmacies of military medical
                    treatment facilities and contractor retail and mail-
                    order programs to implement automated prospective drug
                    utilization review systems.
                        (C) A system-wide drug benefit for covered
                    beneficiaries under chapter 55 of title 10, United
                    States Code, who are entitled to hospital insurance
                    benefits under part A of title XVIII of the Social
                    Security Act (42 U.S.C. 1395c et seq.).

        (b) Submission of Plan.--The Secretary shall submit the plan
    required under subsection (a) not later than March 1, 1999.
        (c) Suspension of Implementation of Program.--The
    Secretary shall suspend any plan to establish a national retail pharmacy
    program for the Department of Defense until--
                (1) the plan required under subsection (a) is submitted; and
                (2) the Secretary implements cost-saving reforms with
            respect to the military and contractor retail and mail order
            pharmacy system.

    SEC. 704. <<NOTE: 10 USC 1086 note.>>  TRANSITIONAL AUTHORITY TO PROVIDE
                CONTINUED HEALTH CARE COVERAGE FOR CERTAIN PERSONS UNAWARE
                OF LOSS OF CHAMPUS ELIGIBILITY.

        (a) Transitional Coverage.--The administering Secretaries may
    continue eligibility of a person described in subsection (b) for health
    care coverage under the Civilian Health and Medical Program of the
    Uniformed Services based on a determination that such continuation is
    appropriate to assure health care coverage for any such person who may
    have been unaware of the loss of eligibility to receive health benefits
    under that program.
        (b) Persons Eligible.--A person shall be eligible for transitional
    health care coverage under subsection (a) if the person--
                (1) is a person described in paragraph (1) of subsection (d)
            of section 1086 of title 10, United States Code;
                (2) in the absence of such paragraph, would be eligible for
            health benefits under such section; and
                (3) satisfies the criteria specified in subparagraphs (A)
            and (B) of paragraph (2) of such subsection.

        (c) Extent of Transitional Authority.--The authority to continue
    eligibility under this section shall apply with respect to

    [[Page 112 STAT. 2058]]

    health care services provided between October 1, 1998, and July 1, 1999.
        (d) Definition.--In this section, the term ``administering
    Secretaries'' has the meaning given that term in section 1072(3) of
    title 10, United States Code.

                           Subtitle B--TRICARE Program

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

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

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

        ``(a) Payment of Claims.--(1) The Secretary of Defense may authorize
    a contractor under the TRICARE program to pay a claim described in
    paragraph (2) before seeking to recover from a third-party payer the
    costs incurred by the contractor to provide health care services that
    are the basis of the claim to a beneficiary under such program.
        ``(2) A claim under this paragraph is a claim--
                ``(A) that is submitted to the contractor by a provider
            under the TRICARE program for payment for services for health
            care provided to a covered beneficiary; and
                ``(B) that is identified by the contractor as a claim for
            which a third-party payer may be liable.

        ``(b) Recovery From Third-Party Payers.--A contractor for the
    provision of health care services under the TRICARE program that pays a
    claim described in subsection (a)(2) shall have the right to collect
    from the third-party payer the costs incurred by such contractor on
    behalf of the covered beneficiary. The contractor shall have the same
    right to collect such costs under this subsection as the right of the
    United States to collect costs under section 1095 of this title.
        ``(c) Definition of Third-Party Payer.--In this section, the term
    `third-party payer' has the meaning given that term in section 1095(h)
    of this title, except that such term excludes primary medical
    insurers.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1095a the following new item:

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

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

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

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

        ``(a) Automatic Enrollment of Certain Dependents.--Each dependent of
    a member of the uniformed services in grade E4

    [[Page 112 STAT. 2059]]

    or below who is entitled to medical and dental care under section
    1076(a)(2)(A) of this title and resides in the catchment area of a
    facility of a uniformed service offering TRICARE Prime shall be
    automatically enrolled in TRICARE Prime at the facility. The Secretary
    concerned shall provide written notice of the enrollment to the member.
    The enrollment of a dependent of the member may be terminated by the
    member or the dependent at any time.
        ``(b) Automatic Renewal of Enrollments of Covered Beneficiaries.--
    (1) An enrollment of a covered beneficiary in TRICARE Prime shall be
    automatically renewed upon the expiration of the enrollment unless the
    renewal is declined.
        ``(2) Not later than 15 days before the expiration date for an
    enrollment of a covered beneficiary in TRICARE Prime, the Secretary
    concerned shall--
                ``(A) transmit a written notification of the pending
            expiration and renewal of enrollment to the covered beneficiary
            or, in the case of a dependent of a member of the uniformed
            services, to the member; and
                ``(B) afford the beneficiary or member, as the case may be,
            an opportunity to decline the renewal of enrollment.

        ``(c) Payment Options for Retirees.--A member or former member of
    the uniformed services eligible for medical care and dental care under
    section 1074(b) of this title may elect to have any fee payable by the
    member or former member for an enrollment in TRICARE Prime withheld from
    the member's retired pay, retainer pay, or equivalent pay, as the case
    may be, or to be paid from a financial institution through electronic
    transfers of funds. The fee shall be paid in accordance with the
    election. A member may elect under this section to pay the fee in full
    at the beginning of the enrollment period or to make payments on a
    monthly or quarterly basis.
        ``(d) Regulations and Exceptions.--The Secretary of Defense shall
    prescribe regulations, including procedures, to carry out this section.
    Regulations prescribed to carry out the automatic enrollment
    requirements under this section may include such exceptions to the
    automatic enrollment procedures as the Secretary determines appropriate
    for the effective operation of TRICARE Prime.
        ``(e) Definitions.--In this section:
                ``(1) The term `TRICARE Prime' means the managed care option
            of the TRICARE program.
                ``(2) The term `catchment area', with respect to a facility
            of a uniformed service, means the service area of the facility,
            as designated under regulations prescribed by the administering
            Secretaries.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1097 the
    following new item:

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

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

    [[Page 112 STAT. 2060]]

    SEC. 713. <<NOTE: 10 USC 1073 note.>>  SYSTEM FOR TRACKING DATA AND
                MEASURING PERFORMANCE IN MEETING TRICARE ACCESS STANDARDS.

        (a) Requirement To Establish System.--(1) The Secretary of Defense
    shall establish a system--
                (A) to track data regarding access of covered beneficiaries
            under chapter 55 of title 10, United States Code, to primary
            health care under the TRICARE program; and
                (B) to measure performance in increasing such access against
            the primary care access standards established by the Secretary
            under the TRICARE program.

        (2) In implementing the system described in paragraph (1), the
    Secretary shall collect data on the timeliness of appointments and
    precise waiting times for appointments in order to measure performance
    in meeting the primary care access standards established under the
    TRICARE program.
        (b) Deadline for Establishment.--The Secretary shall establish the
    system described in subsection (a) not later than April 1, 1999.

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

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

    SEC. 715. <<NOTE: 10 USC 1106 note.>>  REVIEWS RELATING TO ACCESSIBILITY
                OF HEALTH CARE UNDER TRICARE.

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

    [[Page 112 STAT. 2061]]

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

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

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

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

        ``(a) FEHBP Option Demonstration.--The Secretary of Defense, after
    consulting with the other administering Secretaries, shall enter into an
    agreement with the Office of Personnel Management to conduct a
    demonstration project (in this section referred to as the `demonstration
    project') under which eligible beneficiaries described in subsection (b)
    and residing within one of the areas covered by the demonstration
    project may enroll in health benefits plans offered through the Federal
    Employees Health Benefits program under chapter 89 of title 5. The
    number of eligible beneficiaries and family members of such
    beneficiaries under subsection (b)(2) who may be enrolled in health
    benefits plans during the enrollment period under subsection (d)(2) may
    not exceed 66,000.
        ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible beneficiary
    under this subsection is--
                ``(A) a member or former member of the uniformed services
            described in section 1074(b) of this title who is entitled to
            hospital insurance benefits under part A of title XVIII of the
            Social Security Act (42 U.S.C. 1395c et seq.);
                ``(B) an individual who is an unremarried former spouse of a
            member or former member described in section 1072(2)(F) or
            1072(2)(G));
                ``(C) an individual who is--
                        ``(i) a dependent of a deceased member or former
                    member described in section 1076(b) or 1076(a)(2)(B) of
                    this title or of a member who died while on active duty
                    for a period of more than 30 days; and
                        ``(ii) a member of family as defined in section
                    8901(5) of title 5; or
                ``(D) an individual who is--
                        ``(i) a dependent of a living member or former
                    member described in section 1076(b)(1) of this title who
                    is entitled to hospital insurance benefits under part A
                    of title XVIII of the Social Security Act, regardless of
                    the member's or former member's eligibility for such
                    hospital insurance benefits; and
                        ``(ii) a member of family as defined in section
                    8901(5) of title 5.

        ``(2) Eligible beneficiaries may enroll in a Federal Employees
    Health Benefit plan under chapter 89 of title 5 under this section for
    self-only coverage or for self and family coverage which includes any
    dependent of the member or former member who is a family member for
    purposes of such chapter.

    [[Page 112 STAT. 2062]]

        ``(3) A person eligible for coverage under this subsection shall not
    be required to satisfy any eligibility criteria specified in chapter 89
    of title 5 (except as provided in paragraph (1)(C) or (1)(D)) as a
    condition for enrollment in health benefits plans offered through the
    Federal Employees Health Benefits program under the demonstration
    project.
        ``(4) For purposes of determining whether an individual is a member
    of family under paragraph (5) of section 8901 of title 5 for purposes of
    paragraph (1)(C) or (1)(D), a member or former member described in
    section 1076(b) or 1076(a)(2)(B) of this title shall be deemed to be an
    employee under such section.
        ``(5) An eligible beneficiary who is eligible to enroll in the
    Federal Employees Health Benefits program as an employee under chapter
    89 of title 5 is not eligible to enroll in a Federal Employees Health
    Benefits plan under this section.
        ``(c) Area of Demonstration Project.--The Secretary of Defense and
    the Director of the Office of Personnel Management shall jointly
    identify and select the geographic areas in which the demonstration
    project will be conducted. The Secretary and the Director shall
    establish at least six, but not more than ten, such demonstration areas.
    In establishing the areas, the Secretary and Director shall include--
                ``(1) an area that includes the catchment area of one or
            more military medical treatment facilities;
                ``(2) an area that is not located in the catchment area of a
            military medical treatment facility;
                ``(3) an area in which there is a Medicare Subvention
            Demonstration project area under section 1896 of title XVIII of
            the Social Security Act (42 U.S.C. 1395ggg); and
                ``(4) not more than one area for each TRICARE region.

        ``(d) Duration of Demonstration Project.--(1) The Secretary of
    Defense shall conduct the demonstration project during three contract
    years under the Federal Employees Health Benefits program.
        ``(2) Eligible beneficiaries shall, as provided under the agreement
    pursuant to subsection (a), be permitted to enroll in the demonstration
    project during an open enrollment period for the year 2000 (conducted in
    the fall of 1999). The demonstration project shall terminate on December
    31, 2002.
        ``(e) Prohibition Against Use of MTFs and Enrollment Under
    TRICARE.--Covered beneficiaries under this chapter who are provided
    coverage under the demonstration project shall not be eligible to
    receive care at a military medical treatment facility or to enroll in a
    heath care plan under the TRICARE program.
        ``(f ) Term of Enrollment in Project.--(1) Subject to paragraphs (2)
    and (3), the period of enrollment of an eligible beneficiary who enrolls
    in the demonstration project during the open enrollment period for the
    year 2000 shall be three years unless the beneficiary disenrolls before
    the termination of the project.
        ``(2) A beneficiary who elects to enroll in the project, and who
    subsequently discontinues enrollment in the project before the end of
    the period described in paragraph (1), shall not be eligible to reenroll
    in the project.
        ``(3) An eligible beneficiary enrolled in a Federal Employees Health
    Benefits plan under this section may change health benefits plans and
    coverage in the same manner as any other Federal

    [[Page 112 STAT. 2063]]

    Employees Health Benefits program beneficiary may change such plans.
        ``(g) Effect of Cancellation.--The cancellation by an eligible
    beneficiary of coverage under the Federal Employee Health Benefits
    program shall be irrevocable during the term of the demonstration
    project.
        ``(h) Separate Risk Pools; Charges.--(1) The Director of the Office
    of Personnel Management shall require health benefits plans under
    chapter 89 of title 5 that participate in the demonstration project to
    maintain a separate risk pool for purposes of establishing premium rates
    for eligible beneficiaries who enroll in such a plan in accordance with
    this section.
        ``(2) The Director shall determine total subscription charges for
    self only or for family coverage for eligible beneficiaries who enroll
    in a health benefits plan under chapter 89 of title 5 in accordance with
    this section. The subscription charges shall include premium charges
    paid to the plan and amounts described in section 8906(c) of title 5 for
    administrative expenses and contingency reserves.
        ``(i) Government Contributions.--The Secretary of Defense shall be
    responsible for the Government contribution for an eligible beneficiary
    who enrolls in a health benefits plan under chapter 89 of title 5 in
    accordance with this section, except that the amount of the contribution
    may not exceed the amount of the Government contribution which would be
    payable if the electing beneficiary were an employee (as defined for
    purposes of such chapter) enrolled in the same health benefits plan and
    level of benefits.
        ``( j) Report Requirements.--(1) The Secretary of Defense and the
    Director of the Office of Personnel Management shall jointly submit to
    Congress two reports containing the information described in paragraph
    (2). The first report shall be submitted not later than the date that is
    15 months after the date that the Secretary begins to implement the
    demonstration project. The second report shall be submitted not later
    than December 31, 2002.
        ``(2) The reports required by paragraph (1) shall include the
    following:
                ``(A) Information on the number of eligible beneficiaries
            who elect to participate in the demonstration project.
                ``(B) An analysis of the percentage of eligible
            beneficiaries who participate in the demonstration project as
            compared to the percentage of covered beneficiaries under this
            chapter who elect to enroll in a health care plan under such
            chapter.
                ``(C) Information on eligible beneficiaries who elect to
            participate in the demonstration project and did not have
            Medicare Part B coverage before electing to participate in the
            project.
                ``(D) An analysis of the enrollment rates and cost of health
            services provided to eligible beneficiaries who elect to
            participate in the demonstration project as compared with
            similarly situated enrollees in the Federal Employees Health
            Benefits program under chapter 89 of title 5.
                ``(E) An analysis of how the demonstration project affects
            the accessibility of health care in military medical treatment
            facilities, and a description of any unintended effects on the
            treatment priorities in those facilities in the demonstration
            area.
                ``(F) An analysis of any problems experienced by the
            Department of Defense in managing the demonstration project.

    [[Page 112 STAT. 2064]]

                ``(G) A description of the effects of the demonstration
            project on medical readiness and training of the Armed Forces at
            military medical treatment facilities located in the
            demonstration area, and a description of the probable effects
            that making the project permanent would have on the medical
            readiness and training.
                ``(H) An examination of the effects that the demonstration
            project, if made permanent, would be expected to have on the
            overall budget of the Department of Defense, the budget of the
            Office of Personnel Management, and the budgets of individual
            military medical treatment facilities.
                ``(I) An analysis of whether the demonstration project
            affects the cost to the Department of Defense of prescription
            drugs or the accessibility, availability, and cost of such drugs
            to eligible beneficiaries.
                ``(J) Any additional information that the Secretary of
            Defense or the Director of the Office of Personnel Management
            considers appropriate to assist Congress in determining the
            viability of expanding the project to all Medicare-eligible
            members of the uniformed services and their dependents.
                ``(K) Recommendations on whether eligible beneficiaries--
                        ``(i) should be given more than one chance to enroll
                    in the demonstration project under this section;
                        ``(ii) should be eligible to enroll in the project
                    only during the first year following the date that the
                    eligible beneficiary becomes eligible to receive
                    hospital insurance benefits under part A of title XVIII
                    of the Social Security Act; or
                        ``(iii) should be eligible to enroll in the project
                    only during the 2-year period following the date on
                    which the beneficiary first becomes eligible to enroll
                    in the project.

        ``(k) Comptroller General Report.--Not later than December 31, 2002,
    the Comptroller General shall submit to Congress a report addressing the
    same matters required to be addressed under subsection ( j)(2). The
    report shall describe any limitations with respect to the data contained
    in the report as a result of the size and design of the demonstration
    project.
        ``(l) Application of Medigap Protections to Demonstration Project
    Enrollees.--(1) Subject to paragraph (2), the provisions of section
    1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and
    1882(s)(4) of the Social Security Act shall apply to enrollment (and
    termination of enrollment) in the demonstration project under this
    section, in the same manner as they apply to enrollment (and termination
    of enrollment) with a Medicare+Choice organization in a Medicare+Choice
    plan.
        ``(2) In applying paragraph (1)--
                ``(A) any reference in clause (v) or (vi) of section
            1882(s)(3)(B) of such Act to 12 months is deemed a reference to
            36 months; and
                ``(B) the notification required under section 1882(s)(3)(D)
            of such Act shall be provided in a manner specified by the
            Secretary of Defense in consultation with the Director of the
            Office of Personnel Management.''.

    [[Page 112 STAT. 2065]]

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

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

        (b) Conforming Amendments.--Chapter 89 of title 5, United States
    Code, is amended--
                (1) in section 8905--
                        (A) by redesignating subsections (d) through (f ) as
                    subsections (e) through (g), respectively; and
                        (B) by inserting after subsection (c) the following
                    new subsection:

        ``(d) An individual whom the Secretary of Defense determines is an
    eligible beneficiary under subsection (b) of section 1108 of title 10
    may enroll, as part of the demonstration project under such section, in
    a health benefits plan under this chapter in accordance with the
    agreement under subsection (a) of such section between the Secretary and
    the Office and applicable regulations under this chapter.'';
                (2) in section 8906(b)--
                        (A) in paragraph (1), by striking ``paragraphs (2)
                    and (3)'' and inserting in lieu thereof ``paragraphs
                    (2), (3), and (4)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(4) In the case of persons who are enrolled in a health benefits
    plan as part of the demonstration project under section 1108 of title
    10, the Government contribution shall be subject to the limitation set
    forth in subsection (i) of that section.'';
                (3) in section 8906(g)--
                        (A) in paragraph (1), by striking ``paragraph (2)''
                    and inserting in lieu thereof ``paragraphs (2) and
                    (3)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(3) The Government contribution for persons enrolled in a health
    benefits plan as part of the demonstration project under section 1108 of
    title 10 shall be paid as provided in subsection (i) of that section.'';
    and
                (4) in section 8909, by adding at the end the following new
            subsection:

        ``(g) The fund described in subsection (a) is available to pay costs
    that the Office incurs for activities associated with implementation of
    the demonstration project under section 1108 of title 10.''.

    SEC. 722. <<NOTE: 10 USC 1073 note.>>  TRICARE AS SUPPLEMENT TO MEDICARE
                DEMONSTRATION.

        (a) In General.--(1) The Secretary of Defense shall, after
    consultation with the other administering Secretaries, carry out a
    demonstration project in order to assess the feasibility and
    advisability of providing medical care coverage under the TRICARE
    program to the individuals described in subsection (c). The
    demonstration project shall be known as the ``TRICARE Senior
    Supplement''.
        (2) The Secretary shall commence the demonstration project not later
    than January 1, 2000, and shall terminate the demonstration project not
    later than December 31, 2002.
        (3) Under the demonstration project, the Secretary shall permit
    eligible individuals described in subsection (c) to enroll in the
    TRICARE program.

    [[Page 112 STAT. 2066]]

        (4) Payment for care and services received by eligible individuals
    who enroll in the TRICARE program under the demonstration project shall
    be made as follows:
                (A) First, under title XVIII of the Social Security Act, but
            only to the extent that payment for such care and services is
            provided for under that title.
                (B) Second, under the TRICARE program, but only to the
            extent that payment for such care and services is provided under
            that program and is not provided for under subparagraph (A).
                (C) Third, by the eligible individual concerned, but only to
            the extent that payment for such care and services is not
            provided for under subparagraph (A) or (B).

        (5)(A) The Secretary shall require each eligible individual who
    enrolls in the TRICARE program under the demonstration project to pay an
    enrollment fee. The Secretary shall provide, to the extent feasible, the
    option of payment of the enrollment fee through electronic transfers of
    funds and through withholding of such payment from the pay of a member
    or former member of the Armed Forces, and shall provide the option that
    payment of the enrollment fee be made in full at the beginning of the
    enrollment period or that payments be made on a monthly or quarterly
    basis.
        (B) The amount of the enrollment fee charged an eligible individual
    under subparagraph (A) for self-only or family enrollment in any year
    may not exceed the amount equal to 75 percent of the total subscription
    charges in that year for self-only or family, respectively, fee-for-
    service coverage under the health benefits plan under the Federal
    Employees Health Benefits program under chapter 89 of title 5, United
    States Code, that is most similar in coverage to the TRICARE program.
        (6) A covered beneficiary who enrolls in TRICARE Senior Supplement
    under this subsection shall not be eligible to receive health care at a
    facility of the uniformed services during the period such enrollment is
    in effect.
        (b) Evaluation; Review.--(1) The Secretary shall provide for an
    evaluation of the demonstration project conducted under this subsection
    by an appropriate person or entity that is independent of the Department
    of Defense. The evaluation shall include the following:
                (A) An analysis of the costs of the demonstration project to
            the United States and to the eligible individuals who
            participate in such demonstration project.
                (B) An assessment of the extent to which the demonstration
            project satisfies the requirements of such eligible individuals
            for the health care services available under the demonstration
            project.
                (C) An assessment of the effect, if any, of the
            demonstration project on military medical readiness.
                (D) A description of the rate of the enrollment in the
            demonstration project of the individuals who were eligible to
            enroll in the demonstration project.
                (E) An assessment of whether the demonstration project
            provides the most suitable model for a program to provide
            adequate health care services to the population of individuals
            consisting of the eligible individuals.
                (F) An evaluation of any other matters that the Secretary
            considers appropriate.

    [[Page 112 STAT. 2067]]

        (2) The Comptroller General shall review the evaluation conducted
    under paragraph (1). In carrying out the review, the Comptroller General
    shall--
                (A) assess the validity of the processes used in the
            evaluation; and
                (B) assess the validity of any findings under the
            evaluation, including any limitations with respect to the data
            contained in the evaluation as a result of the size and design
            of the demonstration project.

        (3)(A) The Secretary shall submit a report on the results of the
    evaluation under paragraph (1), together with the evaluation, to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives not later than December 31,
    2002.
        (B) <<NOTE: Reports.>>  The Comptroller General shall submit a
    report on the results of the review under paragraph (2) to the
    committees referred to in subparagraph (A) not later than February 15,
    2003.

        (c) Eligible Individuals.--(1) An individual is eligible to
    participate under this section if the individual is a member or former
    member of the uniformed services described in section 1074(b) of title
    10, United States Code, a dependent of the member described in section
    1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of
    the uniformed services who died while on active duty for a period of
    more than 30 days, who--
                (A) is 65 years of age or older;
                (B) is entitled to hospital insurance benefits under part A
            of title XVIII of the Social Security Act (42 U.S.C. 1395c et
            seq.);
                (C) is enrolled in the supplemental medical insurance
            program under part B of such title XVIII (42 U.S.C. 1395j et
            seq.); and
                (D) resides in an area selected by the Secretary under
            subsection (c).

        (d) Areas of Implementation.--(1) The Secretary shall carry out the
    demonstration project under this section in two separate areas selected
    by the Secretary.
        (2) The areas selected by the Secretary under paragraph (1) shall be
    as follows:
                (A) One area shall be an area outside the catchment area of
            a military medical treatment facility in which--
                        (i) no eligible organization has a contract in
                    effect under section 1876 of the Social Security Act (42
                    U.S.C. 1395mm) and no Medicare+Choice organization has a
                    contract in effect under part C of title XVIII of that
                    Act (42 U.S.C. 1395w-21); or
                        (ii) the aggregate number of enrollees with an
                    eligible organization with a contract in effect under
                    section 1876 of that Act or with a Medicare+Choice
                    organization with a contract in effect under part C of
                    title XVIII of that Act is less than 2.5 percent of the
                    total number of individuals in the area who are entitled
                    to hospital insurance benefits under part A of title
                    XVIII of that Act.
                (B) The other area shall be an area outside the catchment
            area of a military medical treatment facility in which--
                        (i) at least one eligible organization has a
                    contract in effect under section 1876 of that Act or one

    [[Page 112 STAT. 2068]]

                    Medicare+Choice organization has a contract in effect
                    under part C of title XVIII of that Act; and
                        (ii) the aggregate number of enrollees with an
                    eligible organization with a contract in effect under
                    section 1876 of that Act or with a Medicare+Choice
                    organization with a contract in effect under part C of
                    title XVIII of that Act exceeds 10 percent of the total
                    number of individuals in the area who are entitled to
                    hospital insurance benefits under part A of title XVIII
                    of that Act.

        (e) Definitions.--In this section:
                (1) The term ``administering Secretaries'' has the meaning
            given that term in section 1072(3) of title 10, United States
            Code.
                (2) The term ``TRICARE program'' has the meaning given that
            term in section 1072(7) of title 10, United States Code.

    SEC. 723. <<NOTE: 10 USC 1073 note.>>  IMPLEMENTATION OF REDESIGN OF
                PHARMACY SYSTEM.

        (a) In General.--Not later than October 1, 1999, the Secretary of
    Defense shall implement, with respect to eligible individuals described
    in subsection (e) who reside in an area selected under subsection (f ),
    the redesign of the pharmacy system under TRICARE (including the mail-
    order and retail pharmacy benefit under TRICARE) to incorporate ``best
    business practices'' of the private sector in providing pharmaceuticals,
    as developed under the plan described in section 703.
        (b) Collection of Premiums and Other Charges.--The Secretary of
    Defense may collect from eligible individuals described in subsection
    (e) who participate in the redesigned pharmacy system any premiums,
    deductibles, copayments, or other charges that the Secretary would
    otherwise collect from individuals similar to such individuals.
        (c) Evaluation.--The Secretary shall provide for an evaluation of
    the implementation of the redesign of the pharmacy system under TRICARE
    under this section by an appropriate person or entity that is
    independent of the Department of Defense. The evaluation shall include
    the following:
                (1) An analysis of the costs of the implementation of the
            redesign of the pharmacy system under TRICARE and to the
            eligible individuals who participate in the system.
                (2) An assessment of the extent to which the implementation
            of such system satisfies the requirements of the eligible
            individuals for the health care services available under
            TRICARE.
                (3) An assessment of the effect, if any, of the
            implementation of the system on military medical readiness.
                (4) A description of the rate of the participation in the
            system of the individuals who were eligible to participate.
                (5) An evaluation of any other matters that the Secretary
            considers appropriate.

        (d) Reports.--The Secretary shall submit two reports on the results
    of the evaluation under subsection (c), together with the evaluation, to
    the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives. The first report
    shall be submitted not later than December 31, 2000, and the second
    report shall be submitted not later than December 31, 2002.

    [[Page 112 STAT. 2069]]

        (e) Eligible Individuals.--(1) An individual is eligible to
    participate under this section if the individual is a member or former
    member of the uniformed services described in section 1074(b) of title
    10, United States Code, a dependent of the member described in section
    1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of
    the uniformed services who died while on active duty for a period of
    more than 30 days, who--
                (A) is 65 years of age or older;
                (B) is entitled to hospital insurance benefits under part A
            of title XVIII of the Social Security Act (42 U.S.C. 1395c et
            seq.);
                (C) except as provided in paragraph (2), is enrolled in the
            supplemental medical insurance program under part B of such
            title XVIII (42 U.S.C. 1395j et seq.); and
                (D) resides in an area selected by the Secretary under
            subsection (f ).

        (2) Paragraph (1)(C) shall not apply in the case of an individual
    who at the time of attaining the age of 65 lived within 100 miles of the
    catchment area of a military medical treatment facility.
        (f ) Areas of Implementation.--(1) The Secretary shall carry out the
    implementation of the redesign of the pharmacy system under TRICARE in
    two separate areas selected by the Secretary.
        (2) The areas selected by the Secretary under paragraph (1) shall be
    as follows:
                (A) One area shall be an area outside the catchment area of
            a military medical treatment facility in which--
                        (i) no eligible organization has a contract in
                    effect under section 1876 of the Social Security Act (42
                    U.S.C. 1395mm) and no Medicare+Choice organization has a
                    contract in effect under part C of title XVIII of that
                    Act (42 U.S.C. 1395w-21); or
                        (ii) the aggregate number of enrollees with an
                    eligible organization with a contract in effect under
                    section 1876 of that Act or with a Medicare+Choice
                    organization with a contract in effect under part C of
                    title XVIII of that Act is less than 2.5 percent of the
                    total number of individuals in the area who are entitled
                    to hospital insurance benefits under part A of title
                    XVIII of that Act.
                (B) The other area shall be an area outside the catchment
            area of a military medical treatment facility in which--
                        (i) at least one eligible organization has a
                    contract in effect under section 1876 of that Act or one
                    Medicare+Choice organization has a contract in effect
                    under part C of title XVIII of that Act; and
                        (ii) the aggregate number of enrollees with an
                    eligible organization with a contract in effect under
                    section 1876 of that Act or with a Medicare+Choice
                    organization with a contract in effect under part C of
                    title XVIII of that Act exceeds 10 percent of the total
                    number of individuals in the area who are entitled to
                    hospital insurance benefits under part A of title XVIII
                    of that Act.

    SEC. 724. <<NOTE: 10 USC 1108 note.>>  COMPREHENSIVE EVALUATION OF
                IMPLEMENTATION OF DEMONSTRATION PROJECTS AND TRICARE
                PHARMACY REDESIGN.

        Not later than March 31, 2003, the Comptroller General shall submit
    to the Committee on Armed Services of the Senate and

    [[Page 112 STAT. 2070]]

    the Committee on National Security of the House of Representatives a
    report containing a comprehensive comparative analysis of the FEHBP
    demonstration project conducted under section 1108 of title 10, United
    States Code (as added by section 721), the TRICARE Senior Supplement
    under section 722, and the redesign of the TRICARE pharmacy system under
    section 723. The comprehensive analysis shall incorporate the findings
    of the evaluation submitted under section 723(c) and the report
    submitted under subsection ( j) of such section 1108.

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

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

        (a) Limitation and Waiver.--(1) Section 1107 of title 10, United
    States Code, is amended--
                (A) by redesignating subsection (f ) as subsection (g); and
                (B) by inserting after subsection (e) the following new
            subsection (f ):

        ``(f ) Limitation and Waiver.--(1) In the case of the administration
    of an investigational new drug or a drug unapproved for its applied use
    to a member of the armed forces in connection with the member's
    participation in a particular military operation, the requirement that
    the member provide prior consent to receive the drug in accordance with
    the prior consent requirement imposed under section 505(i)(4) of the
    Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)) may be waived
    only by the President. The President may grant such a waiver only if the
    President determines, in writing, that obtaining consent--
                ``(A) is not feasible;
                ``(B) is contrary to the best interests of the member; or
                ``(C) is not in the interests of national security.

        ``(2) In making a determination to waive the prior consent
    requirement on a ground described in subparagraph (A) or (B) of
    paragraph (1), the President shall apply the standards and criteria that
    are set forth in the relevant FDA regulations for a waiver of the prior
    consent requirement on that ground.
        ``(3) The Secretary of Defense may request the President to waive
    the prior consent requirement with respect to the administration of an
    investigational new drug or a drug unapproved for its applied use to a
    member of the armed forces in connection with the member's participation
    in a particular military operation. With respect to any such
    administration--
                ``(A) the Secretary may not delegate to any other official
            the authority to request the President to waive the prior
            consent requirement for the Department of Defense; and
                ``(B) <<NOTE: Notification.>>  if the President grants the
            requested waiver, the Secretary shall submit to the chairman and
            ranking minority member of each congressional defense committee
            a notification of the waiver, together with the written
            determination of the President under paragraph (1) and the
            Secretary's justification for the request or requirement under
            subsection (a) for the member to receive the drug covered by the
            waiver.

    [[Page 112 STAT. 2071]]

        ``(4) In this subsection:
                ``(A) The term `relevant FDA regulations' means the
            regulations promulgated under section 505(i) of the Federal
            Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).
                ``(B) The term `prior consent requirement' means the
            requirement included in the relevant FDA regulations pursuant to
            section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act
            (21 U.S.C. 355(i)(4)).
                ``(C) The term `congressional defense committee' means each
            of the following:
                        ``(i) The Committee on Armed Services and the
                    Committee on Appropriations of the Senate.
                        ``(ii) The Committee on National Security and the
                    Committee on Appropriations of the House of
                    Representatives.''.

        (2) <<NOTE: Applicability. 10 USC 1107 note.>>  Subsection (f ) of
    section 1107 of title 10, United States Code (as added by paragraph
    (1)), shall apply to the administration of an investigational new drug
    or a drug unapproved for its applied use to a member of the Armed Forces
    in connection with the member's participation in a particular military
    operation on or after the date of the enactment of this Act.

        (3) <<NOTE: 10 USC 1107 note.>>  A waiver of the requirement for
    prior consent imposed under the regulations required under paragraph (4)
    of section 505(i) of the Federal Food, Drug, and Cosmetic Act (or under
    any antecedent provision of law or regulations) that has been granted
    under that section (or antecedent provision of law or regulations)
    before the date of the enactment of this Act for the administration of a
    drug to a member of the Armed Forces in connection with the member's
    participation in a particular military operation may be applied in that
    case after that date only if--
                (A) the Secretary of Defense personally determines that the
            waiver is justifiable on each ground on which the waiver was
            granted;
                (B) the President concurs in that determination in writing;
            and
                (C) the Secretary submits to the chairman and ranking
            minority member of each congressional committee referred to in
            section 1107(f )(4)(C) of title 10, United States Code (as added
            by paragraph (1))--
                        (i) a notification of the waiver;
                        (ii) the President's written concurrence; and
                        (iii) the Secretary's justification for the request
                    or for the requirement under subsection 1107(a) of such
                    title for the member to receive the drug covered by the
                    waiver.

        (b) Time and Form of Notice.--(1) Subsection (b) of such section is
    amended by striking out ``, if practicable'' and all that follows
    through ``first administered to the member''.
        (2) Subsection (c) of such section is amended by striking out
    ``unless the Secretary of Defense determines'' and all that follows
    through ``alternative method''.

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

        Section 1076(e) of title 10, United States Code, is amended--
                (1) by amending paragraph (1) to read as follows:

        ``(1) Subject to paragraph (3), the administering Secretary shall
    furnish an abused dependent of a former member of a uniformed

    [[Page 112 STAT. 2072]]

    service described in paragraph (4), during that period that the abused
    dependent is in receipt of transitional compensation under section 1059
    of this title, with medical and dental care, including mental health
    services, in facilities of the uniformed services in accordance with the
    same eligibility and benefits as were applicable for that abused
    dependent during the period of active service of the former member.'';
    and
                (2) in paragraph (3)--
                        (A) by adding ``and'' at the end of subparagraph
                    (A);
                        (B) by striking ``; and'' at the end of subparagraph
                    (B) and inserting a period; and
                        (C) by striking subparagraph (C).

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

        (a) Extension of Authorization for Use of Personal Services
    Contracts.--Section 1091(a)(2) of title 10, United States Code, is
    amended in the second sentence by striking out ``the end of the one-year
    period beginning on the date of the enactment of this paragraph'' and
    inserting in lieu thereof ``December 31, 2000''.
         <<NOTE: 10 USC 1091 note.>> (b) Test of Alternative Process for
    Conducting Medical Screenings for Enlistment Qualification.--(1) The
    Secretary of Defense shall conduct a test to--
                (A) determine whether the use of an alternative to the
            system currently used by the Department of Defense of employing
            fee-basis physicians for determining the medical qualifications
            for enlistment of applicants for military service would reduce
            the number of disqualifying medical conditions that are detected
            during the initial entry training of such applicants;
                (B) determine whether any savings or cost avoidance may be
            achieved through use of an alternative system as a result of any
            increased detection of disqualifying medical conditions before
            entry by applicants into initial entry training; and
                (C) compare the capability of an alternative system to meet
            or exceed the cost, responsiveness, and timeliness standards of
            the system currently used by the Department.

        (2) The alternative system described in paragraph (1) may include
    the system used under the TRICARE system, the health-care system of the
    Department of Veterans Affairs, or any other system, or combination of
    systems, considered appropriate by the Secretary.
        (3) <<NOTE: Deadline. Reports.>>  Not later than March 1, 2000, the
    Secretary shall submit to the Committee on National Security of the
    House of Representatives and the Committee on Armed Services of the
    Senate a report on the results and findings of the test conducted under
    paragraph (1).

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

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

    [[Page 112 STAT. 2073]]

        (b) Satisfaction of Continuing Medical Education Requirements.--(1)
    Chapter 55 of title 10, United States Code, is amended by inserting
    after section 1094 the following new section:

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

        ``The Secretary of Defense shall establish a mechanism for ensuring
    that each person under the jurisdiction of the Secretary of a military
    department who provides health care under this chapter as a physician
    satisfies the continuing medical education requirements applicable to
    the physician.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1094 the
    following new item:

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

         <<NOTE: 10 USC 1094 note.>> (c) Effective Dates.--(1) The amendment
    made by subsection (a) shall take effect on October 1, 1999.

        (2) <<NOTE: 10 USC 1094a note.>>  The system required by section
    1094a of title 10, United States Code (as added by subsection (b)),
    shall take effect on the date that is three years after the date of the
    enactment of this Act.

                            Subtitle E--Other Matters

    SEC. 741. <<NOTE: 10 USC 1109 note.>>  ENHANCED DEPARTMENT OF DEFENSE
                ORGAN AND TISSUE DONOR PROGRAM.

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

        (b) Responsibilities Regarding Organ and Tissue Donation.--(1)
    Chapter 55 of title 10, United States Code, is amended by adding after
    section 1108, as added by section 721(a)(1), the following new section:

    ``Sec. 1109. Organ and tissue donor program

        `` <<NOTE: Records.>> (a) Responsibilities of the Secretary of
    Defense.--The Secretary of Defense shall ensure that the advanced
    systems developed for recording armed forces members' personal data and
    information (such as the SMARTCARD, MEDITAG, and Personal Information
    Carrier) include the capability to record organ and tissue donation
    elections.

    [[Page 112 STAT. 2074]]

        ``(b) Responsibilities of the Secretaries of the Military
    Departments.--(1) The Secretaries of the military departments shall
    ensure that--
                ``(1) appropriate information about organ and tissue
            donation is provided--
                        ``(A) to each officer candidate during initial
                    training; and
                        ``(B) to each recruit--
                              ``(i) after completion by the recruit of basic
                          training; and
                              ``(ii) before arrival of the recruit at the
                          first duty assignment of the recruit;
                ``(2) members of the armed forces are given recurring,
            specific opportunities to elect to be organ or tissue donors
            during service in the armed forces and upon retirement; and
                ``(3) members of the armed forces electing to be organ or
            tissue donors are encouraged to advise their next of kin
            concerning the donation decision and any subsequent change of
            that decision.

        ``(c) Responsibilities of the Surgeons General of the
    Military Departments.--The Surgeons General of the military departments
    shall ensure that--
                ``(1) appropriate training is provided to enlisted and
            officer medical personnel to facilitate the effective operation
            of organ and tissue donation activities under garrison
            conditions and, to the extent possible, under operational
            conditions; and
                ``(2) medical logistical activities can, to the extent
            possible without jeopardizing operational requirements, support
            an effective organ and tissue donation program.''.

        (2) The table of sections at the beginning of such chapter is
    amended by adding after the item relating to section 1108, as added by
    section 721(a)(2), the following new item:

    ``1109. Organ and tissue donor program.''.

         <<NOTE: Deadline. 10 USC 1109 note.>> (c) Report.--Not later than
    September 1, 1999, the Secretary of Defense shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a report on the implementation
    of section 1109 of title 10, United States Code (as added by subsection
    (b)).

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

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

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

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

    [[Page 112 STAT. 2075]]

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

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

        (b) Deadline for Submission.--The Secretary shall submit the report
    required by subsection (a) not later than March 1, 1999.

    SEC. 745. <<NOTE: 10 USC 1071 note.>>  JOINT DEPARTMENT OF DEFENSE AND
                DEPARTMENT OF VETERANS AFFAIRS REPORTS RELATING TO
                INTERDEPARTMENTAL COOPERATION IN THE DELIVERY OF MEDICAL
                CARE.

        (a) Findings.--Congress makes the following findings:
                (1) The military health care system of the Department of
            Defense and the Veterans Health Administration of the

    [[Page 112 STAT. 2076]]

            Department of Veterans Affairs are national institutions that
            collectively manage more than 1,500 hospitals, clinics, and
            health care facilities worldwide to provide services to more
            than 11,000,000 beneficiaries.
                (2) In the post-Cold War era, these institutions are in a
            profound transition that involves challenging opportunities.
                (3) During the period from 1988 to 1998, the number of
            military medical personnel has declined by 15 percent and the
            number of military hospitals has been reduced by one-third.
                (4) During the 2 years since 1996, the Department of
            Veterans Affairs has revitalized its structure by decentralizing
            authority into 22 Veterans Integrated Service Networks.
                (5) In the face of increasing costs of medical care,
            increased demands for health care services, and increasing
            budgetary constraints, the Department of Defense and the
            Department of Veterans Affairs have embarked on a variety of
            dynamic and innovative cooperative programs ranging from shared
            services to joint venture operations of medical facilities.
                (6) In 1984, there was a combined total of 102 Department of
            Veterans Affairs and Department of Defense facilities with
            sharing agreements. By 1997, that number had grown to 420.
            During the six years from fiscal year 1992 through fiscal year
            1997, shared services increased from slightly over 3,000
            services to more than 6,000 services, ranging from major medical
            and surgical services, laundry, blood, and laboratory services
            to unusual speciality care services.
                (7) The Department of Defense and the Department of Veterans
            Affairs are conducting four health care joint ventures in New
            Mexico, Nevada, Texas, and Oklahoma, and are planning to conduct
            four more such ventures in Alaska, Florida, Hawaii, and
            California.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the Department of Defense and the Department of Veterans
            Affairs should be commended for the cooperation between the two
            departments in the delivery of medical care, of which the
            cooperation involved in the establishment and operation of the
            Department of Defense and the Department of Veterans Affairs
            Executive Council is a praiseworthy example;
                (2) the Department of Defense and the Department of Veterans
            Affairs are encouraged to continue to explore new opportunities
            to enhance the availability and delivery of medical care to
            beneficiaries by further enhancing the cooperative efforts of
            the departments; and
                (3) enhanced cooperation between the Department of Defense
            and the Department of Veterans Affairs is encouraged regarding--
                        (A) the general areas of access to quality medical
                    care, identification and elimination of impediments to
                    enhanced cooperation, and joint research and program
                    development; and
                        (B) the specific areas in which there is significant
                    potential to achieve progress in cooperation in a short
                    term, including computerization of patient records
                    systems, participation of the Department of Veterans
                    Affairs in the

    [[Page 112 STAT. 2077]]

                    TRICARE program, pharmaceutical programs, and joint
                    physical examinations.

        (c) Joint Survey of Populations Served.--(1) The Secretary of
    Defense and the Secretary of Veterans Affairs shall jointly conduct a
    survey of their respective medical care beneficiary populations to
    identify, by category of beneficiary (defined as the Secretaries
    consider appropriate), the expectations of, requirements for, and
    behavior patterns of the beneficiaries with respect to medical care. The
    two Secretaries shall develop the protocol for the survey jointly, but
    shall obtain the services of an entity independent of the Department of
    Defense and the Department of Veterans Affairs to carry out the survey.
        (2) The survey shall include the following:
                (A) Demographic characteristics, economic characteristics,
            and geographic location of beneficiary populations with regard
            to catchment or service areas.
                (B) The types and frequency of care required by veterans,
            retirees, and dependents within catchment or service areas of
            Department of Defense and Department of Veterans Affairs medical
            facilities and outside those areas.
                (C) The numbers of, characteristics of, and types of medical
            care needed by the veterans, retirees, and dependents who,
            though eligible for medical care in Department of Defense or
            Department of Veterans Affairs treatment facilities or through
            other federally funded medical programs, choose not to seek
            medical care from those facilities or under those programs, and
            the reasons for that choice.
                (D) The obstacles or disincentives for seeking medical care
            from such facilities or under such programs that are perceived
            by veterans, retirees, and dependents.
                (E) Any other matters that the Secretary of Defense and the
            Secretary of Veterans Affairs consider appropriate for the
            survey.

        (3) The Secretary of Defense or the Secretary of Veterans Affairs
    may waive the survey requirements under this subsection with respect to
    information that can be better obtained from a source other than the
    survey.
        (4) <<NOTE: Reports.>>  The Secretary of Defense and the Secretary
    of Veterans Affairs shall submit a report on the results of the survey
    to the appropriate committees of Congress. The report shall contain the
    matters described in paragraph (2) and any proposals for legislation
    that the Secretaries recommend for enhancing Department of Defense and
    Department of Veterans Affairs cooperative efforts with respect to the
    delivery of medical care.

        (d) Review of Law and Policies.--(1) The Secretary of Defense and
    the Secretary of Veterans Affairs shall jointly conduct a review to
    identify impediments to cooperation between the Department of Defense
    and the Department of Veterans Affairs regarding the delivery of medical
    care. The matters reviewed shall include the following:
                (A) All laws, policies, and regulations, and any attitudes
            of beneficiaries of the health care systems of the two
            departments, that have the effect of preventing the
            establishment, or limiting the effectiveness, of cooperative
            health care programs of the departments.
                (B) The requirements and practices involved in the
            credentialling and licensure of health care providers.

    [[Page 112 STAT. 2078]]

                (C) The perceptions of beneficiaries in a variety of
            categories (defined as the Secretaries consider appropriate)
            regarding the various Federal health care systems available for
            their use.
                (D) The types and frequency of medical services furnished by
            the Department of Defense and the Department of Veterans Affairs
            through cooperative arrangements to each category of beneficiary
            (including active-duty members, retirees, dependents, veterans
            in the health-care eligibility categories referred to as
            Category A and Category C, and persons authorized to receive
            medical care under section 1713 of title 38, United States Code)
            of the other department.
                (E) The extent to which health care facilities of the
            Department of Defense and Department of Veterans Affairs have
            sufficient capacity, or could jointly or individually create
            sufficient capacity, to provide services to beneficiaries of the
            other department without diminution of access or services to
            their primary beneficiaries.
                (F) The extent to which the recruitment of scarce medical
            specialists and allied health personnel by the Department of
            Defense and the Department of Veterans Affairs could be enhanced
            through cooperative arrangements for providing health care
            services.
                (G) The obstacles and disincentives to providing health care
            services through cooperative arrangements between the Department
            of Defense and the Department of Veterans Affairs.

        (2) <<NOTE: Reports.>>  The Secretaries shall jointly submit a
    report on the results of the review to the appropriate committees of
    Congress. The report shall include any proposals for legislation that
    the Secretaries recommend for eliminating or reducing impediments to
    interdepartmental cooperation that are identified during the review.

        (e) Participation in TRICARE.--(1) The Secretary of Defense shall
    review the TRICARE program to identify opportunities for increased
    participation by the Department of Veterans Affairs in that program. The
    ongoing collaboration between Department of Defense officials and
    Department of Veterans Affairs officials regarding increased
    participation shall be included among the matters reviewed.
        (2) <<NOTE: Reports.>>  The Secretary of Defense and the Secretary
    of Veterans Affairs shall jointly submit to the appropriate committees
    of Congress a semiannual report on the status of the review under this
    subsection and on efforts to increase the participation of the
    Department of Veterans Affairs in the TRICARE program. No report is
    required under this paragraph after the submission of a semiannual
    report in which the Secretaries declare that the Department of Veterans
    Affairs is participating in the TRICARE program to the extent that can
    reasonably be expected to be attained.

        (f ) Pharmaceutical Benefits and Programs.--(1) The Department of
    Defense-Department of Veterans Affairs Federal Pharmacy Executive
    Steering Committee shall--
                (A) undertake a comprehensive examination of existing
            pharmaceutical benefits and programs for beneficiaries of
            Department of Defense medical care programs, including matters
            relating to the purchasing, distribution, and dispensing of
            pharmaceuticals and the management of mail order pharmaceuticals
            programs; and

    [[Page 112 STAT. 2079]]

                (B) review the existing methods for contracting for and
            distributing medical supplies and services.

        (2) <<NOTE: Reports.>>  The committee shall submit a report on the
    results of the examination to the appropriate committees of Congress.

         <<NOTE: Reports.>> (g) Standardization of Physical Examinations for
    Disability.--The Secretary of Defense and the Secretary of Veterans
    Affairs shall jointly submit to the appropriate committees of Congress a
    report on the status of the efforts of the Department of Defense and the
    Department of Veterans Affairs to standardize physical examinations
    administered by the two departments for the purpose of determining or
    rating disabilities.

        (h) Appropriate Committees of Congress Defined.--For the purposes of
    this section, the appropriate committees of Congress are as follows:
                (1) The Committee on Armed Services and the Committee on
            Veterans' Affairs of the Senate.
                (2) The Committee on National Security and the Committee on
            Veterans' Affairs of the House of Representatives.

        (i) Deadlines for Submission of Reports.--(1) The report required by
    subsection (c)(3) shall be submitted not later than January 1, 2000.
        (2) The report required by subsection (d)(2) shall be submitted not
    later than March 1, 1999.
        (3) The semiannual report required by subsection (e)(2) shall be
    submitted not later than March 1 and September 1 of each year.
        (4) The report on the examination required under subsection (f )
    shall be submitted not later than 60 days after the completion of the
    examination.
        (5) The report required by subsection (g) shall be submitted not
    later than March 1, 1999.

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

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

    [[Page 112 STAT. 2080]]

                (4) The recommended funding levels necessary to address the
            threats posed to the operational readiness of the Armed Forces
            by Lyme disease and other tick-borne diseases.

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

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

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

                            Subtitle B--Other Matters

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

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

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

        Section 2323(e)(3) of title 10, United States Code, is amended--
                (1) by inserting ``(A)'' after ``(3)'';
                (2) by inserting ``, except as provided in subparagraph
            (B),'' after ``the head of an agency may'' in the first
            sentence; and
                (3) by adding at the end the following:
                ``(B)(i) The Secretary of Defense may not exercise the
            authority under subparagraph (A) to enter into a contract for

    [[Page 112 STAT. 2081]]

            a price exceeding fair market cost if the regulations
            implementing that authority are suspended under clause (ii) with
            respect to that contract.
                ``(ii) At the beginning of each fiscal year, the Secretary
            shall determine, on the basis of the most recent data, whether
            the Department of Defense achieved the 5 percent goal described
            in subsection (a) during the fiscal year to which the data
            relates. <<NOTE: Regulations.>>  Upon determining that the
            Department achieved the goal for the fiscal year to which the
            data relates, the Secretary shall issue a suspension, in
            writing, of the regulations that implement the authority under
            subparagraph (A). Such a suspension shall be in
            effect <<NOTE: Applicability.>> for the one-year period
            beginning 30 days after the date on which the suspension is
            issued and shall apply with respect to contracts awarded
            pursuant to solicitations issued during that period.
                ``(iii) For purposes of clause (ii), the term `most recent
            data' means data relating to the most recent fiscal year for
            which data are available.''.

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

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

        (b) Technical Amendment.--Section 2415 of such title is amended by
    striking out ``Defense Contract Administrative Services'' and inserting
    in lieu thereof ``Department of Defense contract administrative
    services''.

    SEC. 803. <<NOTE: 10 USC 2306a note.>>  DEFENSE COMMERCIAL PRICING
                MANAGEMENT IMPROVEMENT.

        (a) Modification of Pricing Regulations for Certain Commercial Items
    Exempt From Cost or Pricing Data Certification Requirements.--(1) The
    Federal Acquisition Regulation issued in accordance with sections 6 and
    25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405, 421)
    shall be revised to clarify the procedures and methods to be used for
    determining the reasonableness of prices of exempt commercial items (as
    defined in subsection (d)).
        (2) The regulations shall, at a minimum, provide specific guidance
    on--
                (A) the appropriate application and precedence of such price
            analysis tools as catalog-based pricing, market-based pricing,
            historical pricing, parametric pricing, and value analysis;
                (B) the circumstances under which contracting officers
            should require offerors of exempt commercial items to provide--
                        (i) information on prices at which the offeror has
                    previously sold the same or similar items; or
                        (ii) other information other than certified cost or
                    pricing data;

    [[Page 112 STAT. 2082]]

                (C) the role and responsibility of Department of Defense
            support organizations in procedures for determining price
            reasonableness; and
                (D) the meaning and appropriate application of the term
            ``purposes other than governmental purposes'' in section 4(12)
            of the Office of Federal Procurement Policy Act (41 U.S.C.
            403(12)).

        (3) <<NOTE: Termination date.>> This subsection shall cease to be
    effective 1 year after the date on which final regulations prescribed
    pursuant to paragraph (1) take effect.

         <<NOTE: Procedures.>> (b) Unified Management of Procurement of
    Exempt Commercial Items.--The Secretary of Defense shall develop and
    implement procedures to ensure that, whenever appropriate, a single item
    manager or contracting officer is responsible for negotiating and
    entering into all contracts from a single contractor for the procurement
    of exempt commercial items or for the procurement of items in a category
    of exempt commercial items.

        (c) Commercial <<NOTE: Procedures.>> Price Trend Analysis.--(1) The
    Secretary of Defense shall develop and implement procedures that, to the
    maximum extent that is practicable and consistent with the efficient
    operation of the Department of Defense, provide for the collection and
    analysis of information on price trends for categories of exempt
    commercial items described in paragraph (2).

        (2) A category of exempt commercial items referred to in paragraph
    (1) consists of exempt commercial items--
                (A) that are in a single Federal Supply Group or Federal
            Supply Class, are provided by a single contractor, or are
            otherwise logically grouped for the purpose of analyzing
            information on price trends; and
                (B) for which there is a potential for the price paid to be
            significantly higher (on a percentage basis) than the prices
            previously paid in procurements of the same or similar items for
            the Department of Defense, as determined by the head of the
            procuring Department of Defense agency or the Secretary of the
            procuring military department on the basis of criteria
            prescribed by the Secretary of Defense.

        (3) The head of a Department of Defense agency or the Secretary of a
    military department shall take appropriate action to address any
    unreasonable escalation in prices being paid for items procured by that
    agency or military department as identified in an analysis conducted
    pursuant to paragraph (1).
        (4) <<NOTE: Deadline. Reports.>> Not later than April 1 of each of
    fiscal years 2000, 2001, and 2002, the Secretary of Defense shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report on the
    analyses of price trends that were conducted for categories of exempt
    commercial items during the preceding fiscal year under the procedures
    prescribed pursuant to paragraph (1). The report shall include a
    description of the actions taken to identify and address any
    unreasonable price escalation for the categories of items.

        (d) Exempt Commercial Items Defined.--For the purposes of this
    section, the term ``exempt commercial item'' means a commercial item
    that is exempt under subsection (b)(1)(B) of section 2306a of title 10,
    United States Code, or subsection (b)(1)(B) of section 304A of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    254b), from the requirements for submission of certified cost or pricing
    data under that section.

    [[Page 112 STAT. 2083]]

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

        (a) Armed Services Acquisitions.--Section 2324(l)(5) of title 10,
    United States Code, is amended to read as follows:
                ``(5) The term `senior executives', with respect to a
            contractor, means the five most highly compensated employees in
            management positions at each home office and each segment of the
            contractor.''.

        (b) Civilian Agency Acquisitions.--Section 306(m)(2) of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2))
    is amended to read as follows:
                ``(2) The term `senior executives', with respect to a
            contractor, means the five most highly compensated employees in
            management positions at each home office and each segment of the
            contractor.''.

        (c) Conforming Amendments.--(1) Section 39(c)(2) of the Office of
    Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read
    as follows:
                ``(2) The term `senior executives', with respect to a
            contractor, means the five most highly compensated employees in
            management positions at each home office and each segment of the
            contractor.''.

        (2) Section 808(g)(2) of the National Defense Authorization Act for
    Fiscal Year 1998 <<NOTE: 41 USC 435 note.>>  (Public Law 105-85; 111
    Stat. 1838) is amended by striking out ``senior executive'' and
    inserting in lieu thereof ``senior executives''.

         <<NOTE: Applicability. 10 USC 2324 note.>> (d) Effective Date.--The
    amendments made by this section shall apply with respect to costs of
    compensation of senior executives incurred after January 1, 1999, under
    covered contracts (as defined in section 2324(l) of title 10, United
    States Code, and section 306(l) of the Federal Property and
    Administrative Services Act of 1949 (41 U.S.C.256(l)) entered into
    before, on, or after the date of the enactment of this Act.

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

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

    [[Page 112 STAT. 2084]]

    the head of the procuring activity granting the waiver determines that
    the requirement under that paragraph should be waived in the case of
    such subcontracts and justifies in writing the reasons for the
    determination.''.

    SEC. 806. <<NOTE: 10 USC 2304 note.>>  PROCUREMENT OF CONVENTIONAL
                AMMUNITION.

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

    SEC. 807. PARA-ARAMID FIBERS AND YARNS.

        (a) Authority.--The Secretary of Defense may procure articles
    containing para-aramid fibers and yarns manufactured in a foreign
    country referred to in subsection (d) if the Secretary determines that--
                (1) procuring articles that contain only para-aramid fibers
            and yarns manufactured from suppliers within the national
            technology and industrial base would result in sole-source
            contracts or subcontracts for the supply of such para-aramid
            fibers and yarns; and
                (2) such sole-source contracts or subcontracts would not be
            in the best interests of the Government or consistent with the
            objectives of section 2304 of title 10, United States Code.

        (b) Submission to Congress.--Not later than 30 days after making a
    determination under subsection (a), the Secretary shall submit to
    Congress a copy of the determination.
        (c) Applicability to Subcontracts.--The authority under subsection
    (a) applies with respect to subcontracts under Department of Defense
    contracts as well as to such contracts.
         <<NOTE: Applicability.>> (d) Foreign Countries Covered.--The
    authority under subsection (a) applies with respect to a foreign country
    that--
                (1) is a party to a defense memorandum of understanding
            entered into under section 2531 of this title; and
                (2) permits United States firms that manufacture para-aramid
            fibers and yarns to compete with foreign firms for the sale of
            para-aramid fibers and yarns in that country, as determined by
            the Secretary of Defense.

        (e) Definition.--In this section, the term ``national technology and
    industrial base'' has the meaning given that term in section 2500 of
    title 10, United States Code.

    [[Page 112 STAT. 2085]]

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

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

         <<NOTE: Deadline. 41 USC 254b note.>> (d) Criteria for Certain
    Determinations.--Not later than 180 days after the date of the enactment
    of this Act, the Federal Acquisition Regulation shall be amended to
    include criteria for contracting officers to apply for determining the
    specific price information that an offeror should be required to submit
    under section 2306a(d) of title 10, United States Code, or section
    304A(d) of the Federal Property and Administrative Services Act of 1949
    (41 U.S.C. 254b(d)).

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

        (a) Requirement To Limit Procurements to Certain Sources.--
    Subsection (a) of section 2473 of title 10, United States Code, is
    amended--
                (1) in the heading, by striking out the first word and
            inserting in lieu thereof ``Requirement'';
                (2) by striking out ``To the extent that the Secretary of
            Defense determines necessary to preserve the small arms
            production industrial base, the Secretary may'' and inserting in
            lieu thereof ``In order to preserve the small arms production
            industrial base, the Secretary of Defense shall''; and
                (3) by inserting before the period at the end the following:
            ``, unless the Secretary determines, with regard to a particular
            procurement, that such requirement is not necessary to preserve
            the small arms production industrial base''.

        (b) Specification of Included Repair Parts.--Subsection (b) of such
    section is amended in paragraph (1) by inserting before the period the
    following: ``, including repair parts consisting of barrels, receivers,
    and bolts''.
        (c) Applicability of Requirement.--Such section is further amended--

    [[Page 112 STAT. 2086]]

                (1) in subsection (b), by striking out ``Subsection'' and
            inserting in lieu thereof ``Subject to subsection (d),
            subsection''; and
                (2) by adding at the end the following new subsection:

        ``(d) Applicability.--This section applies only to procurements of
    covered property and services involving the following small arms:
                ``(1) M16 series rifle.
                ``(2) MK19 grenade machine gun.
                ``(3) M4 series carbine.
                ``(4) M240 series machine gun.
                ``(5) M249 squad automatic weapon.''.

        (d) Submission of Certified Cost or Pricing Data.--Such section is
    further amended by adding at the end the following new subsection:
        ``(e) Submission of Certified Cost or Pricing Data.--If a
    procurement under subsection (a) is a procurement of a commercial item,
    the Secretary may, notwithstanding section 2306a(b)(1)(B) of this title,
    require the submission of certified cost or pricing data under section
    2306a(a) of this title.''.
         <<NOTE: Deadline. 10 USC 2473 note.>> (e) Study.--Not later than 60
    days after the date of the enactment of this Act, the Secretary of the
    Army shall conduct a study, to be carried out by the Army Science Board,
    to examine whether the requirements of section 2473 of title 10, United
    States Code, should be extended to small arms (as specified in
    subsection (d) of such section) and the parts manufactured under a
    contract with the Department of Defense to produce such small arms.

         <<NOTE: 10 USC 2473 note.>> (f ) Authority to Extend Requirements
    of Section 2473.--Based upon recommendations of the Army Science Board
    resulting from the study conducted under subsection (e), the Secretary
    of the Army may apply the requirements of section 2473 of title 10,
    United States Code, to the small arms and parts referred to in
    subsection (e).

                            Subtitle B--Other Matters

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

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

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

        Section 827 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-

    [[Page 112 STAT. 2087]]

    3) is amended by striking out ``90 days'' and inserting in lieu thereof
    ``60 days''.

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

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

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

        ``(a) Authority.--The head of an agency may enter into a contract
    for travel-related services that provides for the contractor to furnish
    services for both official travel and unofficial travel.
        ``(b) Credits, Discounts, Commissions, Fees.--(1) A contract entered
    into under this section may provide for credits, discounts, or
    commissions or other fees to accrue to the Department of Defense. The
    accrual and amounts of credits, discounts, or commissions or other fees
    may be determined on the basis of the volume (measured in the number or
    total amount of transactions or otherwise) of the travel-related sales
    that are made by the contractor under the contract.
        ``(2) The evaluation factors applicable to offers for a contract
    under this section may include a factor that relates to the estimated
    aggregate value of any credits, discounts, commissions, or other fees
    that would accrue to the Department of Defense for the travel-related
    sales made under the contract.
        ``(3) Commissions or fees received by the Department of Defense as a
    result of travel-related sales made under a contract entered into under
    this section shall be distributed as follows:
                ``(A) For amounts relating to sales for official travel,
            credit to appropriations available for official travel for the
            fiscal year in which the amounts were charged.
                ``(B) For amounts relating to sales for unofficial travel,
            deposit in nonappropriated fund accounts available for morale,
            welfare, and recreation programs.

        ``(c) Definitions.--In this section:
                ``(1) The term `head of an agency' has the meaning given
            that term in section 2302(1) of this title.
                ``(2) The term `official travel' means travel at the expense
            of the Federal Government.
                ``(3) The term `unofficial travel' means personal travel or
            other travel that is not paid for or reimbursed by the Federal
            Government out of appropriated funds.

        ``(d) Inapplicability to Coast Guard and NASA.--This section does
    not apply to the Coast Guard when it is not operating as a service in
    the Navy, nor to the National Aeronautics and Space Administration.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

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

    SEC. 814. <<NOTE: 31 USC 1535 note.>>  DEPARTMENT OF DEFENSE PURCHASES
                THROUGH OTHER AGENCIES.

         <<NOTE: Deadline.>> (a) Extension of Regulations.--Not later than
    90 days after the date of the enactment of this Act, the Secretary of
    Defense shall revise the regulations issued pursuant to section 844 of
    the

    [[Page 112 STAT. 2088]]

    National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
    160; 107 Stat. 1720; 31 U.S.C. 1535 note) to--
                (1) cover any purchase described in subsection (b) that is
            greater than the micro-purchase threshold; and
                (2) provide for a streamlined method of compliance for any
            such purchase that is not greater than the simplified
            acquisition threshold.

        (b) Description of Purchases.--A purchase referred to in subsection
    (a) is a purchase of goods or services for one agency of the Department
    of Defense by any other agency under a task or delivery order contract
    entered into by the other agency under section 2304a of title 10, United
    States Code, or section 303H of the Federal Property and Administrative
    Services Act of 1949 (41 U.S.C. 253h).
        (c) Definitions.--In this section:
                (1) The term ``micro-purchase threshold'' has the meaning
            provided in section 32 of the Office of Federal Procurement
            Policy Act (41 U.S.C. 428).
                (2) The term ``simplified acquisition threshold'' has the
            meaning provided in section 4 of such Act (41 U.S.C. 403).

        (d) Termination.--This section shall cease to be effective 1 year
    after the date on which final regulations prescribed pursuant to
    subsection (a) take effect.

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

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

    SEC. 816. <<NOTE: 10 USC 2220 note.>>  PILOT PROGRAMS FOR TESTING
                PROGRAM MANAGER PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT
                RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION PROGRAMS.

        (a) Designation of Pilot Programs.--The Secretary of Defense, acting
    through the Secretaries of the military departments, shall designate 10
    acquisition programs of the military departments as pilot programs on
    program manager responsibility for product support.
        (b) Responsibilities of Program Managers.--The program manager for
    each acquisition program designated as a pilot program under this
    section shall have the responsibility for ensuring that the product
    support functions for the program are properly carried out over the
    entire life cycle of the program.
         <<NOTE: Deadline.>> (c) Report.--Not later than February 1, 1999,
    the Secretary of Defense shall submit to the congressional defense
    committees a report on the pilot programs. The report shall contain the
    following:
                (1) A description of the acquisition programs designated as
            pilot programs under subsection (a).
                (2) For each such acquisition program, the specific
            management actions taken to ensure that the program manager has
            the responsibility for oversight of the performance of the
            product support functions.

    [[Page 112 STAT. 2089]]

                (3) Any proposed change to law, policy, regulation, or
            organization that the Secretary considers desirable, and
            determines feasible to implement, for ensuring that the program
            managers are fully responsible under the pilot programs for the
            performance of all such responsibilities.

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

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

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

         <<NOTE: Deadline.>> (a) Plan Required.--(1) Not later than February
    1, 1999, the Secretary of Defense, in consultation with the
    Administrator of the Small Business Administration, shall develop a plan
    for facilitating the rapid transition into Department of Defense
    acquisition programs of successful first phase and second phase
    activities under the Small Business Innovation Research program under
    section 9 of the Small Business Act (15 U.S.C. 638).

        (2) The Secretary shall submit the plan developed under paragraph
    (1) to--
                (A) the Committee on Armed Services and the Committee on
            Small Business of the Senate; and
                (B) the Committee on National Security and the Committee on
            Small Business of the House of Representatives.

        (b) Conditions.--The plan developed under subsection (a) shall--
                (1) be consistent with the Small Business Innovation
            Research program and with the provisions of division D of the
            Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 110
            Stat. 642) and the Federal Acquisition Streamlining Act of 1994
            (Public Law 103-355; 108 Stat. 3243) that are applicable to the
            Department of Defense; and
                (2) provide for favorable consideration, in the acquisition
            planning process, for funding projects under the Small Business
            Innovation Research program that have successfully completed the
            second phase or are subject to a third phase agreement entered
            into pursuant to section 9(r) of the Small Business Act (15
            U.S.C. 638(r)).

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

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

    [[Page 112 STAT. 2090]]

    such agreement is effective during the 5-year period beginning on
    October 1, 1998.

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

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

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

        (a) Exchange of Barrels Authorized.--(1) The Secretary of Defense
    shall provide, under a contract described in subsection (f ), that the
    contract may be performed, during the period described in paragraph (2),
    by means of delivery of fuel obtained by the refiner concerned in an
    inventory exchange of barrels of fuel, in any case in which--
                (A) the refiner is unable to physically deliver fuel in
            compliance with the contract requirements because of ice
            conditions in Cook Inlet, as determined by the Coast Guard; and
                (B) the Secretary determines that such inability will result
            in an inequity to the refiner.

        (2) The period referred to in paragraph (1) is the period beginning
    on the date of the enactment of this Act and ending on February 28,
    1999.
        (b) Limitation.--The number of barrels of fuel exchanged pursuant to
    a contract described in subsection (f ) may contain up to 15 percent of
    the total quantity of fuel required to be delivered under the contract.
        (c) Effect on Status as Small Disadvantaged Business.--Nothing in
    this section, and no action taken pursuant to this section, may be
    construed as affecting the status of the refiner as a small
    disadvantaged business.
        (d) Effect on Contractual Obligations.--Nothing in this section may
    be construed as affecting the requirement of a refiner to fulfill its
    contractual obligations under a contract described in subsection (e),
    other than as provided under subsection (b).
        (e) Small Disadvantaged Business Defined.--For the purposes of this
    section, the term ``small disadvantaged business'' means a socially and
    economically disadvantaged small business concern, a small business
    concern owned and controlled by socially and economically disadvantaged
    individuals, and a qualified HUBZone small business concern, as those
    terms are defined in sections 8(a)(4)(A), 8(d)(3)(C), and 3(p) of the
    Small Business Act (15 U.S.C. 637(a)(4)(A)), 637(d)(3)(C), and 632(p)),
    respectively.
        (f ) Applicability.--This section applies to any contract between
    the Defense Energy Supply Center of the Department of Defense and a
    refiner that qualifies as a small disadvantaged business for the
    delivery of fuel by barge to Defense Energy Supply Point-Anchorage.

    [[Page 112 STAT. 2091]]

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           Subtitle A--Department of Defense Officers and Organization

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

             Subtitle B--Department of Defense Financial Management

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

                  Subtitle C--Joint Warfighting Experimentation

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

                            Subtitle D--Other Matters

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

           Subtitle A--Department of Defense Officers and Organization

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

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

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

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

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

        (a) Findings.--Congress finds the following:

    [[Page 112 STAT. 2092]]

                (1) The post-Cold War era is marked by geopolitical
            uncertainty and by accelerating technological change,
            particularly with regard to information technologies.
                (2) The combination of that geopolitical uncertainty and
            accelerating technological change portends a transformation in
            the conduct of war, particularly in ways that are likely to
            increase the effectiveness of joint operations.
                (3) The Department of Defense must be organized
            appropriately in order to fully exploit the opportunities
            offered by, and to meet the challenges posed by, this
            anticipated transformation in the conduct of war.
                (4) The basic organization of the Department of Defense was
            established by the National Security Act of 1947 and the 1949
            amendments to that Act.
                (5) The Goldwater-Nichols Department of Defense
            Reorganization Act of 1986 (Public Law 99-433) dramatically
            improved the capability of the Department of Defense to carry
            out operations involving joint forces, but did not specifically
            address issues pertaining to the development of joint
            operations.
                (6) In the future, the ability to achieve improved
            operations of joint forces, particularly under rapidly changing
            technological conditions, will depend on improved force
            development for joint operations.

         <<NOTE: Establishment.>> (b) Independent Task Force on
    Transformation and Department of Defense Organization.--The Secretary of
    Defense shall establish a task force of the Defense Science Board to
    examine the current organization of the Department of Defense with
    regard to the appropriateness of that organization for preparing for a
    transformation in the conduct of war. <<NOTE: Deadline.>>  The task
    force shall be established not later than November 1, 1998.

        (c) Duties of the Task Force.--The task force shall assess, and
    shall make recommendations for the appropriate organization of, the
    Office of the Secretary of Defense, the Joint Chiefs of Staff, the
    individual Armed Forces, and the executive parts of the military
    departments for the purpose of preparing the Department of Defense for a
    transformation in the conduct of war. In making those assessments and
    developing those recommendations, the task force shall review the
    following:
                (1) The general organization of the Department of Defense,
            including whether responsibility and authority for issues
            relating to a transformation in the conduct of war are
            appropriately allocated, especially among the Office of the
            Secretary of Defense, the Joint Chiefs of Staff, and the
            individual Armed Forces.
                (2) The joint requirements process and the requirements
            processes for each of the Armed Forces, including the
            establishment of measures of effectiveness and methods for
            resource allocation.
                (3) The process and organizations responsible for doctrinal
            development, including the appropriate relationship between
            joint force and service doctrine and doctrinal development
            organizations.
                (4) The current programs and organizations under the Office
            of the Secretary of Defense, the Joint Chiefs of Staff, and the
            Armed Forces devoted to innovation and experimentation related
            to a transformation in the conduct of war, including the
            appropriateness of--

    [[Page 112 STAT. 2093]]

                        (A) conducting joint field tests;
                        (B) establishing a separate unified command as a
                    joint forces command to serve, as its sole function, as
                    the trainer, provider, and developer of forces for joint
                    operations and for conducting joint warfighting
                    experimentation;
                        (C) establishing a separate Joint Concept
                    Development Center to monitor exercises and develop
                    measures of effectiveness, analytical concepts, models,
                    and simulations appropriate for understanding the
                    transformation in the conduct of war;
                        (D) establishing a Joint Battle Laboratory to
                    conduct joint experimentation and to integrate the
                    similar efforts of the Armed Forces; and
                        (E) establishing an Assistant Secretary of Defense
                    responsible for transformation in the conduct of war.
                (5) Joint training establishments and training
            establishments of the Armed Forces, including those devoted to
            professional military education, and the appropriateness of
            establishing national training centers.
                (6) Other issues relating to a transformation in the conduct
            of war that the Secretary considers appropriate.

         <<NOTE: Deadlines.>> (d) Report.--The task force shall submit to
    the Secretary of Defense a report containing its assessments and
    recommendations not later than February 1, 1999. The Secretary shall
    submit the report to the Committee on National Security of the House of
    Representatives and the Committee on Armed Services of the Senate not
    later than March 1, 1999, together with the recommendations and comments
    of the Secretary of Defense.

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

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

    SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

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

    SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

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

    [[Page 112 STAT. 2094]]

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

        ``(a) Fisher Houses and Suites Defined.--In this section:
                ``(1) The term `Fisher House' means a housing facility
            that--
                        ``(A) is located in proximity to a health care
                    facility of the Army, the Air Force, or the Navy;
                        ``(B) is available for residential use on a
                    temporary basis by patients of that health care
                    facility, members of the families of such patients, and
                    others providing the equivalent of familial support for
                    such patients; and
                        ``(C) is constructed and donated by--
                              ``(i) <<NOTE: Zachary Fisher. Elizabeth
                          Fisher.>>  the Zachary and Elizabeth M. Fisher
                          Armed Services Foundation; or
                              ``(ii) another source, if the Secretary of the
                          military department concerned designates the
                          housing facility as a Fisher House.
                ``(2) The term `Fisher Suite' means one or more rooms that--
                        ``(A) meet the requirements of subparagraphs (A) and
                    (B) of paragraph (1);
                        ``(B) are constructed, altered, or repaired and
                    donated by a source described in subparagraph (C) of
                    that paragraph; and
                        ``(C) are designated by the Secretary of the
                    military department concerned as a Fisher Suite.

        ``(b) Nonappropriated Fund Instrumentality.--The Secretary of each
    military department shall administer all Fisher Houses and Fisher Suites
    associated with health care facilities of that military department as a
    nonappropriated fund instrumentality of the United States.
        ``(c) Governance.--The Secretary of each military department shall
    establish a system for the governance of the nonappropriated fund
    instrumentality required by subsection (b) for that military department.
        ``(d) Central Fund.--The Secretary of each military department shall
    establish a single fund as the source of funding for the operation,
    maintenance, and improvement of all Fisher Houses and Fisher Suites of
    the nonappropriated fund instrumentality required by subsection (b) for
    that military department.
        ``(e) Acceptance of Contributions; Imposition of Fees.--(1) The
    Secretary of a military department may--
                ``(A) accept money, property, and services donated for the
            support of a Fisher House or Fisher Suite associated with health
            care facilities of that military department; and
                ``(B) may impose fees relating to the use of such Fisher
            Houses and Fisher Suites.

        ``(2) All monetary donations, and the proceeds of the disposal of
    any other donated property, accepted by the Secretary of a military
    department under this subsection shall be credited to the fund
    established under subsection (d) for the Fisher Houses and Fisher Suites
    associated with health care facilities of that military department and
    shall be available to that Secretary to support all such Fisher Houses
    and Fisher Suites.
        ``(f ) <<NOTE: Deadline.>>  Annual Report.--Not later than January
    15 of each year, the Secretary of each military department shall submit
    to Congress a report describing the operation of Fisher Houses and
    Fisher

    [[Page 112 STAT. 2095]]

    Suites associated with health care facilities of that military
    department. The report shall include, at a minimum, the following:
                ``(1) The amount in the fund established by that Secretary
            under subsection (d) as of October 1 of the previous year.
                ``(2) The operation of the fund during the preceding fiscal
            year, including--
                        ``(A) all gifts, fees, and interest credited to the
                    fund; and
                        ``(B) all disbursements from the fund.
                ``(3) The budget for the operation of the Fisher Houses and
            Fisher Suites for the fiscal year in which the report is
            submitted.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2492 (as added
    by section 365) the following new item:

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

        (b) <<NOTE: Deadline. 10 USC 2493 note.>>  Establishment of Funds.--
    Not later than 90 days after the date of the enactment of this Act, the
    Secretary of each military department shall--
                (1) establish the fund required under section 2493(d) of
            title 10, United States Code (as added by subsection (a)); and
                (2) close the Fisher House Trust Fund established for that
            department under section 2221 of such title and transfer the
            amounts in the closed fund to the newly established fund.

        (c) Funding Transition.--(1) Of the amount authorized to be
    appropriated pursuant to section 301(2) for operation and maintenance
    for the Navy, the Secretary of the Navy shall transfer to the fund
    established by that Secretary under section 2493(d) of title 10, United
    States Code (as added by subsection (a)), such amount as that Secretary
    considers appropriate for establishing in the fund a corpus sufficient
    for operating Fisher Houses and Fisher Suites associated with health
    care facilities of the Department of the Navy.
        (2) Of the amount authorized to be appropriated pursuant to section
    301(4) for operation and maintenance for the Air Force, the Secretary of
    the Air Force shall transfer to the fund established by that Secretary
    under section 2493(d) of title 10, United States Code (as added by
    subsection (a)), such amount as that Secretary considers appropriate for
    establishing in the fund a corpus sufficient for operating Fisher Houses
    and Fisher Suites associated with health care facilities of the
    Department of the Air Force.
        (d) Reporting Requirements.--The Secretary of each military
    department, upon completing the actions required of the Secretary under
    subsections (b) and (c), shall submit to Congress a report containing--
                (1) the certification of that Secretary that those actions
            have been completed; and
                (2) a statement of the amount deposited in the fund
            established by that Secretary under section 2493(d) of title 10,
            United States Code (as added by subsection (a)).

        (e) Availability of Transferred Amounts.--Amounts transferred under
    subsection (b) or (c) to a fund established under section 2493(d) of
    title 10, United States Code (as added by subsection (a)), shall be
    available without fiscal year limitation for the purposes for which the
    fund is established and shall be administered as nonappropriated funds.

    [[Page 112 STAT. 2096]]

        (f ) Conforming Repeals.--(1) Section 2221 of title 10, United
    States Code, and the item relating to that section in the table of
    sections at the beginning of chapter 131 of such title, are repealed.
        (2) Section 1321(a) of title 31, United States Code, is amended by
    striking out paragraphs (92), (93), and (94).
        (3) <<NOTE: Effective date.>>  The amendments made by this
    subsection shall take effect 90 days after the date of the enactment of
    this Act.

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

        (a) Analysis and Plan for Reform of Management of RDTE Activities.--
    (1) The Secretary of Defense, acting through the Under Secretary of
    Defense for Acquisition and Technology, shall analyze the structures and
    processes of the Department of Defense for management of its
    laboratories and test and evaluation centers. Taking into consideration
    the results of that analysis, the Secretary shall develop a plan for
    improving the management of those laboratories and centers. The plan
    shall include such reorganizations and reforms as the Secretary
    considers appropriate.
        (2) The analysis under paragraph (1) shall include an analysis of
    each of the following with respect to Department of Defense laboratories
    and test and evaluation centers:
                (A) Opportunities to improve efficiency and reduce
            duplication of efforts by those laboratories and centers by
            designating a lead agency or executive agent by area or function
            or other methods of streamlining management.
                (B) Reform of the management processes of those laboratories
            and centers that would reduce costs and increase efficiency in
            the conduct of research, development, test, and evaluation
            activities.
                (C) Opportunities for those laboratories and centers to
            enter into partnership arrangements with laboratories in
            industry, academia, and other Federal agencies that demonstrate
            leadership, initiative, and innovation in research, development,
            test, and evaluation activities.
                (D) The extent to which there is disseminated within those
            laboratories and centers information regarding initiatives that
            have successfully improved efficiency through reform of
            management processes and other means.
                (E) Any cost savings that can be derived directly from
            reorganization of management structures of those laboratories
            and centers.
                (F) Options for reinvesting any such cost savings in those
            laboratories and centers.

        (3) <<NOTE: Deadline.>>  The Secretary shall submit the plan
    required under paragraph (1) to the congressional defense committees not
    later than 180 days after the date of the enactment of this Act.

        (b) Cost-Based Management Information System.--(1) The Secretary of
    Defense shall develop a plan, including a schedule, for establishing a
    cost-based management information system for Department of Defense
    laboratories and test and evaluation centers. The system shall provide
    for accurately identifying and comparing the costs of operating each
    laboratory and each center.
        (2) In preparing the plan, the Secretary shall assess the
    feasibility and desirability of establishing a common methodology for
    assessing costs. The Secretary shall consider the use of a revolving
    fund as one potential methodology.

    [[Page 112 STAT. 2097]]

        (3) <<NOTE: Deadline.>>  The Secretary shall submit the plan
    required under paragraph (1) to the congressional defense committees not
    later than 90 days after the date of the enactment of this Act.

             Subtitle B--Department of Defense Financial Management

    SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

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

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

        ``(a) Limitation on Reporting in Miscellaneous Services Object
    Class.--The Secretary of Defense shall ensure that, in reporting to the
    Office of Management and Budget (pursuant to OMB Circular A-11 (relating
    to preparation and submission of budget estimates)) obligations of the
    Department of Defense for any period of time for contract services, no
    more than 15 percent of the total amount of obligations so reported is
    reported in the miscellaneous services object class.
        ``(b) Definition of Reporting Categories for Advisory and Assistance
    Services.--In carrying out section 1105(g) of title 31 for the
    Department of Defense (and in determining what services are to be
    reported to the Office of Management and Budget in the advisory and
    assistance services object class), the Secretary of Defense shall apply
    to the terms used for the definition of `advisory and assistance
    services' in paragraph (2)(A) of that section the following meanings
    (subject to the authorized exemptions):
                ``(1) Management and professional support services.--The
            term `management and professional support services' (used in
            clause (i) of section 1105(g)(2)(A) of title 31) means services
            that provide engineering or technical support, assistance,
            advice, or training for the efficient and effective management
            and operation of organizations, activities, or systems. Those
            services--
                        ``(A) are closely related to the basic
                    responsibilities and mission of the using organization;
                    and
                        ``(B) include efforts that support or contribute to
                    improved organization or program management, logistics
                    management, project monitoring and reporting, data
                    collection, budgeting, accounting, auditing, and
                    administrative or technical support for conferences and
                    training programs.
                ``(2) Studies, analyses, and evaluations.--The term
            `studies, analyses, and evaluations' (used in clause (ii) of
            section 1105(g)(2)(A) of title 31) means services that provide
            organized, analytic assessments to understand or evaluate
            complex issues to improve policy development, decisionmaking,
            management, or administration and that result in documents
            containing data or leading to conclusions or recommendations.
            Those services may include databases, models, methodologies, and
            related software created in support of a study, analysis, or
            evaluation.

    [[Page 112 STAT. 2098]]

                ``(3) Engineering and technical services.--The term
            `engineering and technical services' (used in clause (iii) of
            section 1105(g)(2)(A) of title 31) means services that take the
            form of advice, assistance, training, or hands-on training
            necessary to maintain and operate fielded weapon systems,
            equipment, and components (including software when applicable)
            at design or required levels of effectiveness.

        ``(c) Proper Classification of Advisory and Assistance Services.--
    Before the submission to the Office of Management and Budget of the
    proposed Department of Defense budget for inclusion in the President's
    budget for a fiscal year pursuant to section 1105 of title 31, the
    Secretary of Defense, acting through the Under Secretary of Defense
    (Comptroller), shall conduct a review of Department of Defense services
    expected to be performed as contract services during the fiscal year for
    which that budget is to be submitted in order to ensure that those
    services that are advisory and assistance services (as defined in
    accordance with subsection (b)) are in fact properly classified, in
    accordance with that subsection, in the advisory and assistance services
    object class.
        ``(d) <<NOTE: Deadlines.>>  Report to Congress.--The Secretary shall
    submit to Congress each year, not later than 30 days after the date on
    which the budget for the next fiscal year is submitted pursuant to
    section 1105 of title 31, a report containing the information derived
    from the review under subsection (c).

        ``(e) Assessment by Comptroller General.--(1) The Comptroller
    General shall conduct a review of the report of the Secretary of Defense
    under subsection (d) each year and shall--
                ``(A) assess the methodology used by the Secretary in
            obtaining the information submitted to Congress in that report;
            and
                ``(B) assess the information submitted to Congress in that
            report.

        ``(2) Not later than 120 days after the date on which the Secretary
    submits to Congress the report required under subsection (d) for any
    year, the Comptroller General shall submit to Congress the Comptroller
    General's report containing the results of the review for that year
    under paragraph (1).
        ``(f ) Definitions.--In this section:
                ``(1) The term `contract services' means all services that
            are reported to the Office of Management and Budget pursuant to
            OMB Circular A-11 (relating to preparation and submission of
            budget estimates) in budget object classes that are designated
            in the Object Class 25 series.
                ``(2) The term `advisory and assistance services object
            class' means those contract services constituting the budget
            object class that is denominated `Advisory and Assistance
            Service' and designated (as of the date of the enactment of this
            section) as Object Class 25.1 (or any similar object class
            established after the date of the enactment of this section for
            the reporting of obligations for advisory and assistance
            contract services).
                ``(3) The term `miscellaneous services object class' means
            those contract services constituting the budget object class
            that is denominated `Other Services (services not otherwise
            specified in the 25 series)' and designated (as of the date of
            the enactment of this section) as Object Class 25.2 (or any
            similar object class established after the date of the enactment
            of this section

    [[Page 112 STAT. 2099]]

            for the reporting of obligations for miscellaneous or
            unspecified contract services).
                ``(4) The term `authorized exemptions' means those
            exemptions authorized (as of the date of the enactment of this
            section) under Department of Defense Directive 4205.2, captioned
            `Acquiring and Managing Contracted Advisory and Assistance
            Services (CAAS)' and issued by the Under Secretary of Defense
            for Acquisition and Technology on February 10, 1992, such
            exemptions being set forth in Enclosure 3 to that directive
            (captioned `CAAS Exemptions').''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2211 the
    following new item:

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

        (b) <<NOTE: Applicability. 10 USC 2212 note.>>  Transition.--For the
    budget for fiscal year 2000, and the reporting of information to the
    Office of Management and Budget in connection with the preparation of
    that budget, section 2212 of title 10, United States Code, as added by
    subsection (a), shall be applied by substituting ``30 percent'' in
    subsection (a) for ``15 percent''.

        (c) <<NOTE: Deadline.>>  Initial Classification of Advisory and
    Assistance Services.--Not later than February 1, 1999, the Secretary of
    Defense, acting through the Under Secretary of Defense (Comptroller),
    shall conduct a review of Department of Defense services performed or
    expected to be performed as contract services during fiscal year 1999 in
    order to ensure that those services that are advisory and assistance
    services (as defined in accordance with subsection (b) of section 2212
    of title 10, United States Code, as added by subsection (a)) are in fact
    properly classified, in accordance with that subsection, in the advisory
    and assistance services object class (as defined in subsection (f )(2)
    of that section).

        (d) Fiscal Year 1999 Reduction.--The total amount that may be
    obligated by the Secretary of Defense for contracted advisory and
    assistance services from amounts appropriated for fiscal year 1999 is
    the amount programmed for those services resulting from the review
    referred to in subsection (c) reduced by $240,000,000.

    SEC. 912. <<NOTE: Deadline.>>  REPORT ON DEPARTMENT OF DEFENSE FINANCIAL
                MANAGEMENT IMPROVEMENT PLAN.

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

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

        (a) Study Required.--(1) The Secretary of Defense shall carry out a
    study of the feasibility and advisability of selecting on a competitive
    basis the source or sources for performing the finance

    [[Page 112 STAT. 2100]]

    and accounting functions of the Department of Defense from among the
    Defense Finance and Accounting Service of the Department of Defense and
    non-DFAS sources.
        (2) For the purposes of this section, the term ``non-DFAS sources''
    means--
                (A) the military departments;
                (B) Federal agencies outside the Department of Defense; and
                (C) private sector sources.

        (b) <<NOTE: Deadline.>>  Report.--Not later than October 1, 1999,
    the Secretary shall submit to Congress a report in writing on the
    results of the study. The report shall include the following:
                (1) A discussion of how the finance and accounting functions
            of the Department of Defense are performed, including the
            necessary operations, the operations actually performed, the
            personnel required for the operations, and the core competencies
            that are necessary for the performance of those functions.
                (2) A comparison of the performance of the finance and
            accounting functions by the Defense Finance and Accounting
            Service with the performance of finance and accounting functions
            by non-DFAS sources that exemplify the best finance and
            accounting practices and results, together with a comparison of
            the costs of the performance of those functions by the Defense
            Finance and Accounting Service and the estimated costs of the
            performance of those functions by non-DFAS sources.
                (3) The finance and accounting functions, if any, that are
            appropriate for performance by non-DFAS sources, together with a
            concept of operations that--
                        (A) specifies the mission;
                        (B) identifies the finance and accounting operations
                    to be performed;
                        (C) describes the work force that is necessary to
                    perform those operations;
                        (D) discusses where the operations are to be
                    performed;
                        (E) describes how the operations are to be
                    performed; and
                        (F) discusses the relationship between how the
                    operations are to be performed and the mission.
                (4) An analysis of how Department of Defense programs or
            processes would be affected by the performance of the finance
            and accounting functions of the Department of Defense by one or
            more non-DFAS source.
                (5) The status of the efforts within the Department of
            Defense to consolidate and eliminate redundant finance and
            accounting systems and to better integrate the automated and
            manual systems of the department that provide input to financial
            management or accounting systems of the department.
                (6) A description of a feasible and effective process for
            selecting, on a competitive basis, sources to perform the
            finance and accounting functions of the Department of Defense
            from among the Defense Finance and Accounting Service and non-
            DFAS sources, including a discussion of the selection criteria
            the Secretary considers appropriate.
                (7) An analysis of the costs and benefits of the various
            policies and actions recommended.

    [[Page 112 STAT. 2101]]

                (8) A discussion of any findings, analyses, and
            recommendations on the performance of the finance and accounting
            functions of the Department of Defense that have been made by
            the Task Force on Defense Reform appointed by the Secretary of
            Defense on May 14, 1997.
                (9) Any additional information and recommendations the
            Secretary considers appropriate.

        (c) Market Research.--In carrying out the study, the Secretary shall
    conduct market research to determine whether or not an efficient and
    competitive domestic market for finance and accounting services exists.
    In conducting that research, the Secretary shall consider whether the
    domestic market for finance and accounting services could be reasonably
    expected to generate responsive private sector competitors for the
    provision of the finance and accounting services, or a portion of such
    services, of the Department of Defense and whether there are any
    substantial barriers to entry or expansion in that market. In conducting
    such research, the Secretary shall consider not only the current state
    of the domestic market for finance and accounting services, but also the
    potential effects that the entry of the Department of Defense as a
    large, long-term consumer of such services might have on that market.

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

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

        (d) Submittal of Plan.--The plan shall be submitted to the Committee
    on Armed Services of the Senate and the Committee on National Security
    of the House of Representatives not later than January 15, 1999.

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

        (a) Requirement.--Section 113 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(l) The Secretary shall include in the annual report to Congress
    under subsection (c) the following:

    [[Page 112 STAT. 2102]]

                ``(1) A comparison of the amounts provided in the defense
            budget for support and for mission activities for each of the
            preceding five fiscal years.
                ``(2) A comparison of the number of military and civilian
            personnel, shown by major occupational category, assigned to
            support positions and to mission positions for each of the
            preceding five fiscal years.
                ``(3) An accounting, shown by service and by major
            occupational category, of the number of military and civilian
            personnel assigned to support positions during each of the
            preceding five fiscal years.
                ``(4) <<NOTE: Records.>>  A listing of the number of
            military and civilian personnel assigned to management
            headquarters and headquarters support activities as a percentage
            of military end-strength for each of the preceding five fiscal
            years.''.

        (b) <<NOTE: Deadline. 10 USC 113 note.>>  Report on Terminology.--
    Not later than 90 days after the date of the enactment of this Act, the
    Secretary of Defense shall submit to the Committee on Armed Services of
    the Senate and the Committee on National Security of the House of
    Representatives a report setting forth the definitions of the terms
    ``support'' and ``mission'' that the Secretary proposes to use for
    purposes of the report requirement under section 113(l) of title 10,
    United States Code, as added by subsection (a).

                  Subtitle C--Joint Warfighting Experimentation

    SEC. 921. <<NOTE: 10 USC 485 note.>>  FINDINGS CONCERNING JOINT
                WARFIGHTING EXPERIMENTATION.

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

    [[Page 112 STAT. 2103]]

            against the full range of future challenges to assist in
            developing and validating new joint warfighting concepts and
            transforming the Armed Forces to meet the threats to national
            security anticipated for the early 21st century.

    SEC. 922. <<NOTE: 10 USC 485 note.>>  SENSE OF CONGRESS CONCERNING JOINT
                WARFIGHTING EXPERIMENTATION.

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

    [[Page 112 STAT. 2104]]

        (c) Congressional Review.--It is, further, the sense of Congress
    that Congress--
                (1) should review the adequacy of the process of
            transformation to meet future challenges to the national
            security; and
                (2) if progress is determined inadequate, should consider
            legislation to--
                        (A) establish an appropriate organization to conduct
                    the mission described in subsection (a); and
                        (B) provide to the commander given the
                    responsibility for that mission appropriate and
                    sufficient resources for joint warfighting
                    experimentation and the appropriate authority to execute
                    that commander's assigned responsibilities for that
                    mission, including the authorities specified in
                    subsection (b).

    SEC. 923. <<NOTE: 10 USC 485 note.>> REPORTS ON JOINT WARFIGHTING
                EXPERIMENTATION.

        (a) Initial Report.--(1) The commander of the combatant command
    assigned by the Secretary of Defense to have the mission for joint
    warfighting experimentation shall submit to the Secretary an initial
    report on the implementation of joint experimentation.
    Not <<NOTE: Deadline.>> later than April 1, 1999, the Secretary shall
    submit that report, together with any comments that the Secretary
    considers appropriate and any comments that the Chairman of the Joint
    Chiefs of Staff considers appropriate, to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives.

        (2) The report of the commander under paragraph (1) shall include
    the commander's assessment of the following:
                (A) The authority and responsibilities of the commander as
            described in section 922(b).
                (B) The organization of the commander's combatant command,
            and of its staff, for carrying out the joint warfighting
            experimentation mission.
                (C) The process established for tasking forces to
            participate in experimentation and the commander's specific
            authority over those forces, including forces designated as
            joint experimentation forces.
                (D) The resources provided for initial implementation of
            joint warfighting experimentation, the process for providing
            those resources to the commander, the categories of the funding,
            and the authority of the commander for budget execution.
                (E) The process established for the development and
            acquisition of the materiel, supplies, services, and equipment
            necessary for the conduct of joint warfighting experimentation.
                (F) The process established for designing, preparing, and
            conducting joint experiments.
                (G) The role assigned the commander for--
                        (i) integrating and testing in joint warfighting
                    experimentation the systems that emerge from warfighting
                    experimentation by the Armed Forces or the Defense
                    Agencies;
                        (ii) assessing the effectiveness of organizational
                    structures, operational concepts, and technologies; and
                        (iii) assisting the Secretary of Defense and
                    Chairman of the Joint Chiefs of Staff to prioritize
                    requirements or acquisition programs.

    [[Page 112 STAT. 2105]]

        (b) Annual Report.--(1) Chapter 23 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 485. Joint warfighting experimentation

        ``(a) Annual Report.--The commander of the combatant command
    assigned by the Secretary of Defense to have the mission for joint
    warfighting experimentation shall submit to the Secretary an annual
    report on the conduct of joint experimentation activities for the fiscal
    year ending in the year of the report. <<NOTE: Deadline.>>  Not later
    than December 1 of each year, the Secretary shall submit that report,
    together with any comments that the Secretary considers appropriate and
    any comments that the Chairman of the Joint Chiefs of Staff considers
    appropriate, to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives.

        ``(b) Matters To Be Included.--Each report under this section shall
    include, for the fiscal year covered by the report, the following:
                ``(1) Any changes in the assessments of the matters
            described in section 923(a)(2) of the Strom Thurmond National
            Defense Authorization Act for Fiscal Year 1999 since the
            preparation of the assessments of those matters set forth in the
            latest report submitted under this section.
                ``(2) A description of the conduct of joint experimentation
            activities, including the number of activities, the forces
            involved, the national security challenges addressed, the
            operational concepts assessed, and the scenarios and measures of
            effectiveness used.
                ``(3) An assessment of the results of joint warfighting
            experimentation within the Department of Defense.
                ``(4) With respect to joint warfighting experimentation, any
            recommendations that the commander considers appropriate
            regarding--
                        ``(A) the development or acquisition of advanced
                    technologies;
                        ``(B) changes in organizational structure,
                    operational concepts, or joint doctrine;
                        ``(C) the conduct of experiments;
                        ``(D) the adequacy of resources; or
                        ``(E) changes in authority of the commander to
                    develop or acquire materiel, supplies, services, or
                    equipment directly for the conduct of joint warfighting
                    experimentation.''.

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

    ``485. Joint warfighting experimentation.''.

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

    [[Page 112 STAT. 2106]]

                            Subtitle D--Other Matters

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

        (a) Reduction of Defense Acquisition and Support Workforce.--The
    Secretary of Defense shall accomplish reductions in defense acquisition
    and support personnel positions during fiscal year 1999 so that the
    total number of such personnel as of October 1, 1999, is less than the
    total number of such personnel as of October 1, 1998, by at least the
    applicable number determined under subsection (b).
        (b) Required Reduction.--(1) The applicable number for purposes of
    subsection (a) is 25,000. However, the Secretary of Defense may specify
    a lower number, which may not be less than 12,500, as the applicable
    number for purposes of subsection (a) if the Secretary determines, and
    certifies to Congress not later than May 1, 1999, that an applicable
    number greater than the number specified by the Secretary would be
    inconsistent with the cost-effective management of the defense
    acquisition system to obtain best value equipment and with ensuring
    military readiness.
        (2) The Secretary shall include with such a certification a report
    setting forth a detailed explanation of each of the matters certified.
    The report shall include--
                (A) a detailed explanation of all matters incorporated in
            the Secretary's determination;
                (B) a definition of the components of the defense
            acquisition and support positions; and
                (C) the allocation of the reductions under this section
            among the occupational elements of those positions.

        (3) The authority of the Secretary under paragraph (1) may only be
    delegated to the Deputy Secretary of Defense.
        (c) Limitation on Reduction of Core Acquisition Workforce.--The
    Secretary shall implement this section so that the core defense
    acquisition workforce identified by the Secretary in the report
    submitted pursuant to section 912(b) of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
    1860) is reduced proportionally no more than the other occupational
    elements included as defense acquisition and support positions in that
    report.
        (d) Defense Acquisition and Support Personnel Defined.--For purposes
    of this section, the term ``defense acquisition and support personnel''
    means military and civilian personnel (other than civilian personnel who
    are employed at a maintenance depot) who are assigned to, or employed
    in, acquisition organizations of the Department of Defense (as specified
    in Department of Defense Instruction numbered 5000.58 dated January 14,
    1992), and any other organizations which the Secretary may determine to
    have a predominantly acquisition mission.

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

        Of the amount available for fiscal year 1999 for operation and
    support activities of the Office of the Secretary of Defense, not more
    than 90 percent may be obligated until each of the following reports has
    been submitted:

    [[Page 112 STAT. 2107]]

                (1) The report required to be submitted to the congressional
            defense committees by section 904(b) of the National Defense
            Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
            Stat. 2619).
                (2) The reports required to be submitted to Congress by
            sections 911(b) and 911(c) of the National Defense Authorization
            Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1858,
            1859).

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

        (a) Roles of Inspectors General of the Armed Forces.--(1) Subsection
    (c) of section 1034 of title 10, United States Code, is amended--
                (A) by striking out paragraph (1) and inserting in lieu
            thereof the following:

        ``(1) If a member of the armed forces submits to an Inspector
    General an allegation that a personnel action prohibited by subsection
    (b) has been taken (or threatened) against the member with respect to a
    communication described in paragraph (2), the Inspector General shall
    take the action required under paragraph (3).''; and
                (B) by striking out paragraph (3) and inserting in lieu
            thereof the following:

        ``(3)(A) An Inspector General receiving an allegation as described
    in paragraph (1) shall expeditiously determine whether there is
    sufficient evidence to warrant an investigation of the allegation.
        ``(B) If the Inspector General receiving such an allegation is an
    Inspector General within a military department, that Inspector General
    shall promptly notify the Inspector General of the Department of Defense
    of the allegation. Such notification shall be made in accordance with
    regulations prescribed under subsection (h).
        ``(C) If an allegation under paragraph (1) is submitted to an
    Inspector General within a military department and if the determination
    of that Inspector General under subparagraph (A) is that there is not
    sufficient evidence to warrant an investigation of the allegation, that
    Inspector General shall forward the matter to the Inspector General of
    the Department of Defense for review.
        ``(D) Upon determining that an investigation of an allegation under
    paragraph (1) is warranted, the Inspector General making the
    determination shall expeditiously investigate the allegation. In the
    case of a determination made by the Inspector General of the Department
    of Defense, that Inspector General may delegate responsibility for the
    investigation to an appropriate Inspector General within a military
    department.
        ``(E) In the case of an investigation under subparagraph (D) within
    the Department of Defense, the results of the investigation shall be
    determined by, or approved by, the Inspector General of the Department
    of Defense (regardless of whether the investigation itself is conducted
    by the Inspector General of the Department of Defense or by an Inspector
    General within a military department).
        ``(4) Neither an initial determination under paragraph (3)(A) nor an
    investigation under paragraph (3)(D) is required in the case of an
    allegation made more than 60 days after the date

    [[Page 112 STAT. 2108]]

    on which the member becomes aware of the personnel action that is the
    subject of the allegation.
        ``(5) The Inspector General of the Department of Defense, or the
    Inspector General of the Department of Transportation (in the case of a
    member of the Coast Guard when the Coast Guard is not operating as a
    service in the Navy), shall ensure that the Inspector General conducting
    the investigation of an allegation under this subsection is outside the
    immediate chain of command of both the member submitting the allegation
    and the individual or individuals alleged to have taken the retaliatory
    action.''.
        (2) Subsection (d) of such section is <<NOTE: 10 USC 1034.>>
    amended--
                (A) by inserting ``receiving the allegation'' after ``the
            Inspector General'' the first place it appears; and
                (B) by adding at the end the following: ``In the case of an
            allegation received by the Inspector General of the Department
            of Defense, the Inspector General may delegate that
            responsibility to the Inspector General of the armed force
            concerned.''.

        (b) Mismanagement Covered by Protected Communications.--Subsection
    (c)(2)(B) of such section is amended by striking out ``Mismanagement''
    and inserting in lieu thereof ``Gross mismanagement''.
        (c) Simplified Reporting and Notice Requirements.--(1) Paragraph (1)
    of subsection (e) of such section is amended--
                (A) by striking out ``Not later than 30 days after
            completion of an investigation under subsection (c) or (d),''
            and inserting in lieu thereof ``After completion of an
            investigation under subsection (c) or (d) or, in the case of an
            investigation under subsection (c) by an Inspector General
            within a military department, after approval of the report of
            that investigation under subsection (c)(3)(E),''
                (B) by striking out ``the Inspector General shall submit a
            report on'' and inserting in lieu thereof ``the Inspector
            General conducting the investigation shall submit a report on'';
                (C) by inserting ``shall transmit a copy of the report on
            the results of the investigation to'' before ``the member of the
            armed forces''; and
                (D) by adding at the end the following new
            sentence: <<NOTE: Deadline.>>  ``The report shall be transmitted
            to the Secretary, and the copy of the report shall be
            transmitted to the member, not later than 30 days after the
            completion of the investigation or, in the case of an
            investigation under subsection (c) by an Inspector General
            within a military department, after approval of the report of
            that investigation under subsection (c)(3)(E).''.

        (2) Paragraph (2) of such subsection is amended--
                (A) by striking out ``submitted'' after ``In the copy of the
            report'' and inserting in lieu thereof ``transmitted''; and
                (B) by adding at the end the following new sentence:
            ``However, the copy need not include summaries of interviews
            conducted, nor any document acquired, during the course of the
            investigation. Such items shall be transmitted to the member, if
            the member requests the items, with the copy of the report or
            after the transmittal to the member of the copy of the report,
            regardless of whether the request for those items is made before
            or after the copy of the report is transmitted to the member.''.

    [[Page 112 STAT. 2109]]

        (3) Paragraph (3) of such subsection is amended by striking out ``90
    days'' and inserting in lieu thereof ``180 days''.
        (d) Repeal of Post-Investigation Interview Requirement.--Subsection
    (h) of such section is repealed.
        (e) Definition of Inspector General Defined.--Subsection ( j)(2) of
    such section is amended--
                (1) by redesignating subparagraph (B) as subparagraph (G)
            and, in that subparagraph, by striking out ``an officer'' and
            inserting in lieu thereof ``An officer'';
                (2) by striking out subparagraph (A) and inserting in lieu
            thereof the following:
                        ``(A) The Inspector General of the Department of
                    Defense.
                        ``(B) The Inspector General of the Department of
                    Transportation, in the case of a member of the Coast
                    Guard when the Coast Guard is not operating as a service
                    in the Navy.
                        ``(C) The Inspector General of the Army, in the case
                    of a member of the Army.
                        ``(D) The Naval Inspector General, in the case of a
                    member of the Navy.
                        ``(E) The Inspector General of the Air Force, in the
                    case of a member of the Air Force.
                        ``(F) The Deputy Naval Inspector General for Marine
                    Corps Matters, in the case of a member of the Marine
                    Corps.''; and
                (3) in the matter preceding subparagraph (A), by striking
            out ``means--'' and inserting in lieu thereof ``means the
            following:''.

        (f ) Technical and Conforming Amendments.--(1) Subsections (i) and (
    j) of such section are redesignated as subsections (h) and (i),
    respectively.
        (2) Subsection (b)(1)(B)(ii) of such section is amended by striking
    out ``subsection ( j))'' and inserting in lieu thereof ``subsection (i))
    or any other Inspector General appointed under the Inspector General Act
    of 1978''.

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

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

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

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

    ``Sec. 5026. Consultation with Commandant of the Marine Corps on major
                            decisions directly concerning Marine Corps
                            aviation

        ``The Secretary of the Navy shall ensure that the views of the
    Commandant of the Marine Corps are given appropriate consideration
    before a major decision is made by an element of the Department of the
    Navy outside the Marine Corps on a matter that directly concerns Marine
    Corps aviation.''.

    [[Page 112 STAT. 2110]]

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

    ``5026. Consultation with Commandant of the Marine Corps on major
               decisions directly concerning Marine Corps aviation.''.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

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

                     Subtitle B--Naval Vessels and Shipyards

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

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

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

            Subtitle D--Miscellaneous Report Requirements and Repeals

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

                    Subtitle E--Armed Forces Retirement Home

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

                Subtitle F--Matters Relating to Defense Property

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

                 Subtitle G--Other Department of Defense Matters

    Sec. 1061. Pilot program on alternative notice of receipt of legal
               process for garnishment of Federal pay for child support and
               alimony.
    Sec. 1062. Training of special operations forces with friendly foreign
               forces.

    [[Page 112 STAT. 2111]]

    Sec. 1063. Research grants competitively awarded to service academies.
    Sec. 1064. Department of Defense use of frequency spectrum.
    Sec. 1065. Department of Defense aviation accident investigations.
    Sec. 1066. Investigation of actions relating to 174th Fighter Wing of
               New York Air National Guard.
    Sec. 1067. Program to commemorate 50th anniversary of the Korean War.
    Sec. 1068. Designation of America's National Maritime Museum.
    Sec. 1069. Technical and clerical amendments.

                            Subtitle H--Other Matters

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

                          Subtitle A--Financial Matters

    SEC. 1001. TRANSFER AUTHORITY.

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

        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount is
    transferred by an amount equal to the amount transferred.
        (d) Notice to Congress.--The Secretary shall promptly notify
    Congress of each transfer made under subsection (a).

    SEC. 1002. <<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. 3616 of the One Hundred Fifth Congress and transmitted to the
    President is hereby incorporated into this Act.
        (b) Construction With Other Provisions of Act.--The amounts
    specified in the Classified Annex are not in addition to amounts
    authorized to be appropriated by other provisions of this Act.

    [[Page 112 STAT. 2112]]

        (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) <<NOTE: President.>>  Distribution of Classified Annex.--The
    President shall provide for appropriate distribution of the Classified
    Annex, or of appropriate portions of the annex, within the executive
    branch of the Government.

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

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

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

        (a) Authorization of Appropriations.--Funds are hereby authorized to
    be appropriated for the Department of Defense for fiscal year 1999 for
    incremental costs of the Armed Forces for Bosnia peacekeeping operations
    in the total amount of $1,858,600,000, as follows:
                (1) For military personnel, in addition to the amounts
            authorized to be appropriated in title IV of this Act:
                        (A) For the Army, $297,700,000.
                        (B) For the Navy, $9,700,000.
                        (C) For the Marine Corps, $2,700,000.
                        (D) For the Air Force, $33,900,000.
                        (E) For the Naval Reserve, $2,200,000.
                (2) For operation and maintenance for the Overseas
            Contingency Operations Transfer Fund, in addition to the total
            amount authorized to be appropriated for that fund in section
            301(24) of this Act, $1,512,400,000.

        (b) Designation as Emergency.--Funds authorized to be appropriated
    in accordance with subsection (a) are designated as emergency
    requirements pursuant to section 251(b)(2)(A) of the Balanced Budget and
    Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).
        (c) Limitation.--(1) Funds available for the Department of Defense
    for fiscal year 1999 for military personnel for the Army, Navy, Marine
    Corps, Air Force, or Naval Reserve or for operation and maintenance for
    the Overseas Contingency Operations Transfer Fund may not be obligated
    or expended for Bosnia peacekeeping operations in excess of the amount
    authorized to be appropriated for that purpose under subsection (a).
        (2) The President may waive the limitation in paragraph (1) after
    submitting to Congress the following:
                (A) The President's written certification that the waiver is
            necessary in the national security interests of the United
            States.

    [[Page 112 STAT. 2113]]

                (B) The President's written certification that exercising
            the waiver will not adversely affect the readiness of United
            States military forces.
                (C) A report setting forth the following:
                        (i) The reasons that the waiver is necessary in the
                    national security interests of the United States.
                        (ii) The specific reasons that additional funding is
                    required for the continued presence of United States
                    military forces participating in, or supporting, Bosnia
                    peacekeeping operations for fiscal year 1999.
                        (iii) A discussion of the impact on the military
                    readiness of United States Armed Forces of the
                    continuing deployment of United States military forces
                    participating in, or supporting, Bosnia peacekeeping
                    operations.
                (D) A supplemental appropriations request for the Department
            of Defense for such amounts as are necessary for the additional
            fiscal year 1999 costs associated with United States military
            forces participating in, or supporting, Bosnia peacekeeping
            operations.

        (d) Transfer Authority.--The Secretary of Defense may transfer
    amounts of authorizations made available to the Department of Defense in
    subsection (a)(2) for fiscal year 1999 to any of the authorizations for
    that fiscal year in section 301. Amounts of authorizations so
    transferred shall be merged with and be available for the same purposes
    as the authorization to which transferred. The transfer authority under
    this subsection is in addition to any other transfer authority provided
    in this Act.
        (e) Bosnia Peacekeeping Operations Defined.--For the purposes of
    this section, the term ``Bosnia peacekeeping operations''--
                (1) means the operation designated as Operation Joint Forge
            and any other operation involving the participation of any of
            the Armed Forces in peacekeeping or peace enforcement activities
            in and around the Republic of Bosnia and Herzegovina; and
                (2) includes, with respect to Operation Joint Forge or any
            such other operation, each activity that is directly related to
            the support of the operation.

    SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

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

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

        (a) Fiscal Year 1999 Limitation.--The total amount contributed by
    the Secretary of Defense in fiscal year 1999 for the common-funded
    budgets of NATO may be any amount up to, but not in excess of, the
    amount specified in subsection (b) (rather than the maximum amount that
    would otherwise be applicable to those contributions under the fiscal
    year 1998 baseline limitation).
        (b) Total Amount.--The amount of the limitation applicable under
    subsection (a) is the sum of the following:

    [[Page 112 STAT. 2114]]

                (1) The amounts of unexpended balances, as of the end of
            fiscal year 1998, of funds appropriated for fiscal years before
            fiscal year 1999 for payments for those budgets.
                (2) The amount authorized to be appropriated under section
            301(1) that is available for contributions for the NATO common-
            funded military budget under section 314.
                (3) The amount authorized to be appropriated under section
            201 that is available for contribution for the NATO common-
            funded civil budget under section 243.
                (4) The total amount of the contributions authorized to be
            made under section 2501.

        (c) Definitions.--For purposes of this section:
                (1) Common-funded budgets of nato.--The term ``common-funded
            budgets of NATO'' means the Military Budget, the Security
            Investment Program, and the Civil Budget of the North Atlantic
            Treaty Organization (and any successor or additional account or
            program of NATO).
                (2) Fiscal year 1998 baseline limitation.--The term ``fiscal
            year 1998 baseline limitation'' means the maximum annual amount
            of Department of Defense contributions for common-funded budgets
            of NATO that is set forth as the annual limitation in section
            3(2)(C)(ii) of the resolution of the Senate giving the advice
            and consent of the Senate to the ratification of the Protocols
            to the North Atlantic Treaty of 1949 on the Accession of Poland,
            Hungary, and the Czech Republic (as defined in section 4(7) of
            that resolution), approved by the Senate on April 30, 1998.

    SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

        (a) Increased Cash Balances.--The Secretary of Defense shall
    administer the working-capital funds of the Department of Defense during
    fiscal year 1999 so as to ensure that the total amount of the cash
    balances in such funds on September 30, 1999, exceeds the total amount
    of the cash balances in such funds on September 30, 1998, by
    $1,300,000,000.
        (b) Actions Regarding Unbudgeted Losses.--The Under Secretary of
    Defense (Comptroller) shall take such actions regarding unbudgeted
    losses for the working-capital funds as may be necessary in order to
    ensure that such unbudgeted losses do not preclude the Secretary of
    Defense from achieving the increase in cash balances in working-capital
    funds required under subsection (a).
        (c) Waiver.--(1) The Secretary of Defense may waive the requirements
    of this section upon certifying to Congress, in writing, that the waiver
    is necessary to meet requirements associated with--
                (A) a contingency operation (as defined in section
            101(a)(13) of title 10, United States Code); or
                (B) an operation of the Armed Forces that commenced before
            October 1, 1998, and continues during fiscal year 1999.

        (2) The waiver authority under paragraph (1) may not be delegated to
    any official other than the Deputy Secretary of Defense.
        (3) The waiver authority under paragraph (1) does not apply to the
    limitation in subsection (d) or the limitation in section 2208(l)(3) of
    title 10, United States Code (as added by subsection (e)).
        (d) Fiscal Year 1999 Limitation on Advance Billings.--(1) The total
    amount of the advance billings rendered or imposed

    [[Page 112 STAT. 2115]]

    for the working-capital funds of the Department of Defense and the
    Defense Business Operations Fund in fiscal year 1999--
                (A) for the Department of the Navy, may not exceed
            $400,000,000; and
                (B) for the Department of the Air Force, may not exceed
            $400,000,000.

        (2) In paragraph (1), the term ``advance billing'' has the meaning
    given such term in section 2208(l) of title 10, United States Code.
        (e) Permanent Limitation on Advance Billings.--(1) Section 2208(l)
    of title 10, United States Code, is amended--
                (A) by redesignating paragraph (3) as paragraph (4); and
                (B) by inserting after paragraph (2) the following new
            paragraph (3):

        ``(3) The total amount of the advance billings rendered or imposed
    for all working-capital funds of the Department of Defense in a fiscal
    year may not exceed $1,000,000,000.''.
        (2) <<NOTE: Applicability. 10 USC 2208 note.>>  Section 2208(l)(3)
    of such title, as added by paragraph (1), applies to fiscal years after
    fiscal year 1999.

        (f ) <<NOTE: Deadlines.>>  Semiannual Report.--(1) The Under
    Secretary shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives--
                (A) not later than May 1, 1999, a report on the
            administration of this section for the six-month period ending
            on March 31, 1999; and
                (B) not later than November 1, 1999, a report on the
            administration of this section for the six-month period ending
            on September 30, 1999.

        (2) Each report shall include, for the period covered by the report,
    the following:
                (A) The profit and loss status of each working-capital fund
            activity.
                (B) The actions taken by the Secretary of each military
            department to use assessments of surcharges to correct for
            unbudgeted losses.

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

        (a) Revision of Certain DBOF Provisions and Reenactment To Apply to
    Working-Capital Funds Generally.--Section 2208 of title 10, United
    States Code, is amended by adding at the end the following:
        ``(m) Capital Asset Subaccounts.--Amounts charged for depreciation
    of capital assets shall be credited to a separate capital asset
    subaccount established within a working-capital fund.
        ``(n) Separate Accounting, Reporting, and Auditing of Funds and
    Activities.--The Secretary of Defense, with respect to the working-
    capital funds of each Defense Agency, and the Secretary of each military
    department, with respect to the working-capital funds of the military
    department, shall provide for separate accounting, reporting, and
    auditing of funds and activities managed through the working-capital
    funds.
        ``(o) Charges for Goods and Services Provided Through the Fund.--(1)
    Charges for goods and services provided for an activity through a
    working-capital fund shall include the following:
                ``(A) Amounts necessary to recover the full costs of the
            goods and services provided for that activity.

    [[Page 112 STAT. 2116]]

                ``(B) Amounts for depreciation of capital assets, set in
            accordance with generally accepted accounting principles.

        ``(2) Charges for goods and services provided through a working-
    capital fund may not include the following:
                ``(A) Amounts necessary to recover the costs of a military
            construction project (as defined in section 2801(b) of this
            title), other than a minor construction project financed by the
            fund pursuant to section 2805(c)(1) of this title.
                ``(B) Amounts necessary to cover costs incurred in
            connection with the closure or realignment of a military
            installation.
                ``(C) Amounts necessary to recover the costs of functions
            designated by the Secretary of Defense as mission critical, such
            as ammunition handling safety, and amounts for ancillary tasks
            not directly related to the mission of the function or activity
            managed through the fund.

        ``(p) Procedures For Accumulation of Funds.--The Secretary of
    Defense, with respect to each working-capital fund of a Defense Agency,
    and the Secretary of a military department, with respect to each
    working-capital fund of the military department, shall establish billing
    procedures to ensure that the balance in that working-capital fund does
    not exceed the amount necessary to provide for the working-capital
    requirements of that fund, as determined by the Secretary.
        ``(q) Annual Reports and Budget.--The Secretary of Defense, with
    respect to each working-capital fund of a Defense Agency, and the
    Secretary of each military department, with respect to each working-
    capital fund of the military department, shall annually submit to
    Congress, at the same time that the President submits the budget under
    section 1105 of title 31, the following:
                ``(1) A detailed report that contains a statement of all
            receipts and disbursements of the fund (including such a
            statement for each subaccount of the fund) for the fiscal year
            ending in the year preceding the year in which the budget is
            submitted.
                ``(2) A detailed proposed budget for the operation of the
            fund for the fiscal year for which the budget is submitted.
                ``(3) A comparison of the amounts actually expended for the
            operation of the fund for the fiscal year referred to in
            paragraph (1) with the amount proposed for the operation of the
            fund for that fiscal year in the President's budget.
                ``(4) A report on the capital asset subaccount of the fund
            that contains the following information:
                        ``(A) The opening balance of the subaccount as of
                    the beginning of the fiscal year in which the report is
                    submitted.
                        ``(B) The estimated amounts to be credited to the
                    subaccount in the fiscal year in which the report is
                    submitted.
                        ``(C) The estimated amounts of outlays to be paid
                    out of the subaccount in the fiscal year in which the
                    report is submitted.
                        ``(D) The estimated balance of the subaccount at the
                    end of the fiscal year in which the report is submitted.
                        ``(E) A statement of how much of the estimated
                    balance at the end of the fiscal year in which the
                    report is submitted will be needed to pay outlays in the
                    immediately following fiscal year that are in excess of
                    the amount to be credited to the subaccount in the
                    immediately following fiscal year.''.

    [[Page 112 STAT. 2117]]

        (b) Repeal of Authority To Manage Through the Defense Business
    Operations Fund.--Section 2216a of title 10, United States Code, and the
    item relating to that section in the table of sections at the beginning
    of chapter 131 of such title, are repealed.

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

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

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

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

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

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

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

        (b) <<NOTE: Applicability. 10 USC 2739 note.>>  Effective Date.--
    Section 2739 of title 10, United States Code, as added by subsection
    (a), applies with respect to amounts

    [[Page 112 STAT. 2118]]

    collected by a military department on or after the date of the enactment
    of this Act.

                     Subtitle B--Naval Vessels and Shipyards

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

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

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

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

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

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

    SEC. 1014. <<NOTE: Clifton B. Cates.>>  SENSE OF CONGRESS CONCERNING THE
                NAMING OF AN LPD-17 VESSEL.

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

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

        (a) <<NOTE: Deadline.>>  Navy Report.--(1) Not later than March 31,
    1999, the Secretary of the Navy shall submit to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives a report on battleship readiness for meeting
    requirements of the Armed Forces for naval surface fire support.

        (2) The report shall contain the following:

    [[Page 112 STAT. 2119]]

                (A) The reasons for the Secretary's failure to comply with
            the requirements of section 1011 of the National Defense
            Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
            Stat. 421) until February 1998.
                (B) The requirements for specialized air-naval gunfire
            liaison units.
                (C) The plans of the Navy for retaining and maintaining 16-
            inch ammunition for the main guns of battleships.
                (D) The plans of the Navy for retaining the hammerhead crane
            essential for lifting battleship turrets.
                (E) An estimate of the cost of reactivating Iowa-class
            battleships for listing on the Naval Vessel Register, restoring
            the vessels to seaworthiness with operational capabilities
            necessary to meet requirements for naval surface fire-support,
            and maintaining the battleships in that condition for continued
            listing on the register, together with an estimate of the time
            necessary to reactivate and restore the vessels to that
            condition.
                (F) An assessment of the short-term costs and the long-term
            costs associated with alternative methods for executing the
            naval surface fire-support mission of the Navy, including the
            alternative of reactivating two battleships.

        (3) The Secretary shall act through the Director of Expeditionary
    Warfare Division (N85) of the Office of the Chief of Naval Operations in
    preparing the report.
        (b) GAO Report.--(1) The Comptroller General shall submit to the
    Committee on Armed Services of the Senate and the Committee on National
    Security of the House of Representatives a report on the naval surface
    fire-support capabilities of the Navy.
        (2) The report shall contain the following:
                (A) An assessment of the extent of the compliance by the
            Secretary of the Navy with the requirements of section 1011 of
            the National Defense Authorization Act for Fiscal Year 1996
            (Public Law 104-106; 110 Stat. 421).
                (B) The plans of the Navy for executing the naval surface
            fire-support mission of the Navy.
                (C) An assessment of the short-term costs and the long-term
            costs associated with the plans.
                (D) An analysis of the assessment required under subsection
            (a)(2)(F).

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

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

    SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

        In carrying out section 1023 of the National Defense Authorization
    Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1876), the
    Secretary of the Army may substitute the obsolete, decommissioned
    tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-

    [[Page 112 STAT. 2120]]

    1971) as one of the two obsolete tugboats authorized to be transferred
    by the Secretary under that section.

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

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

        (a) Continuation of Authority.--Subsection (a) of section 1004 of
    the National Defense Authorization Act for Fiscal Year 1991 (Public Law
    101-510; 10 U.S.C. 374 note) is amended by striking out ``through 1999''
    and inserting in lieu thereof ``through 2002''.
        (b) Bases and Facilities Support.--Subsection (b)(4) of such section
    is amended--
                (1) by striking out ``unspecified minor construction'' and
            inserting in lieu thereof ``an unspecified minor military
            construction project'';
                (2) by inserting ``of the Department of Defense or any
            Federal, State, or local law enforcement agency'' after
            ``counter-drug activities''; and
                (3) by inserting before the period at the end the following:
            ``or counter-drug activities of a foreign law enforcement agency
            outside the United States''.

        (c) Congressional Notification of Facilities Projects.--Such section
    is further amended by adding at the end the following new subsection:
        ``(h) Congressional Notification of Facilities Projects.--(1) When a
    decision is made to carry out a military construction project described
    in paragraph (2), the Secretary of Defense shall submit to the
    congressional defense committees written notice of the decision,
    including the justification for the project and the estimated cost of
    the project. The project may be commenced only after the end of the 21-
    day period beginning on the date on which the written notice is received
    by Congress.
        ``(2) <<NOTE: Applicability.>>  Paragraph (1) applies to an
    unspecified minor military construction project that--
                ``(A) is intended for the modification or repair of a
            Department of Defense facility for the purpose set forth in
            subsection (b)(4); and
                ``(B) has an estimated cost of more than $500,000.''.

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

        (a) Procurement of Equipment.--Subsection (a)(3) of section 112 of
    title 32, United States Code, is amended--
                (1) by striking out ``and leasing of equipment'' and
            inserting in lieu thereof ``and equipment, and the leasing of
            equipment,''; and
                (2) by adding at the end the following new sentence:
            ``However, the use of such funds for the procurement of
            equipment may not exceed $5,000 per purchase order, unless
            approval for procurement of equipment in excess of that amount
            is granted in advance by the Secretary of Defense.''.

    [[Page 112 STAT. 2121]]

        (b) Training and Readiness.--Subsection (b)(2) of such section is
    amended to read as follows:
        ``(2)(A) A member of the National Guard serving on full-time
    National Guard duty under orders authorized under paragraph (1) shall
    participate in the training required under section 502(a) of this title
    in addition to the duty performed for the purpose authorized under that
    paragraph. The pay, allowances, and other benefits of the member while
    participating in the training shall be the same as those to which the
    member is entitled while performing duty for the purpose of carrying out
    drug interdiction and counter-drug activities. The member is not
    entitled to additional pay, allowances, or other benefits for
    participation in training required under section 502(a)(1) of this
    title.
        ``(B) Appropriations available for the Department of Defense for
    drug interdiction and counter-drug activities may be used for paying
    costs associated with a member's participation in training described in
    subparagraph (A). The appropriation shall be reimbursed in full, out of
    appropriations available for paying those costs, for the amounts paid.
    Appropriations available for paying those costs shall be available for
    making the reimbursements.
        ``(C) To ensure that the use of units and personnel of the National
    Guard of a State pursuant to a State drug interdiction and counter-drug
    activities plan does not degrade the training and readiness of such
    units and personnel, the following requirements shall apply in
    determining the drug interdiction and counter-drug activities that units
    and personnel of the National Guard of a State may perform:
                ``(i) The performance of the activities may not adversely
            affect the quality of that training or otherwise interfere with
            the ability of a member or unit of the National Guard to perform
            the military functions of the member or unit.
                ``(ii) National Guard personnel will not degrade their
            military skills as a result of performing the activities.
                ``(iii) The performance of the activities will not result in
            a significant increase in the cost of training.
                ``(iv) In the case of drug interdiction and counter-drug
            activities performed by a unit organized to serve as a unit, the
            activities will support valid unit training requirements.''.

        (c) Assistance to Youth and Charitable Organizations.--Subsection
    (b)(3) of such section is amended to read as follows:

        ``(3) A unit or member of the National Guard of a State may be used,
    pursuant to a State drug interdiction and counter-drug activities plan
    approved by the Secretary of Defense under this section, to provide
    services or other assistance (other than air transportation) to an
    organization eligible to receive services under section 508 of this
    title if--
                ``(A) the State drug interdiction and counter-drug
            activities plan specifically recognizes the organization as
            being eligible to receive the services or assistance;
                ``(B) in the case of services, the performance of the
            services meets the requirements of paragraphs (1) and (2) of
            subsection (a) of section 508 of this title; and
                ``(C) the services or assistance is authorized under
            subsection (b) or (c) of such section or in the State drug
            interdiction and counter-drug activities plan.''.

    [[Page 112 STAT. 2122]]

        (d) Definition of Drug Interdiction and Counter-Drug Activities.--
    Subsection (i)(1) of such section is amended by inserting after ``drug
    interdiction and counter-drug law enforcement activities'' the
    following: ``, including drug demand reduction activities,''.
        (e) Conforming Amendments.--Subsection (a) of such section is
    further amended--
                (1) by striking out ``for--'' and inserting in lieu thereof
            ``for the following:'';
                (2) by striking out ``the'' at the beginning of paragraphs
            (1), (2), and (3) and inserting in lieu thereof ``The'';
                (3) in paragraph (1), by striking out the semicolon at the
            end and inserting in lieu thereof a period; and
                (4) in paragraph (2), by striking out ``; and'' and
            inserting in lieu thereof a period.

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

        (a) Sense of Congress Regarding Priority of Drug Interdiction and
    Counter-Drug Activities.--It is the sense of Congress that the Secretary
    of Defense should--
                (1) ensure that the international drug interdiction and
            counter-drug activities of the Department of Defense are
            accorded adequate resources within the budget allocation of the
            Department to execute the drug interdiction and counter-drug
            mission under the Global Military Force Policy of the
            Department; and
                (2) make such changes to that policy as the Secretary
            considers necessary.

        (b) Support for Counter-Drug Operation Caper Focus.--(1) During
    fiscal year 1999, the Secretary of Defense shall make available, to the
    maximum extent practicable, such surface vessels, maritime patrol
    aircraft, and personnel of the Navy as may be necessary to conduct the
    final phase of the counter-drug operation known as Caper Focus, which
    targets the maritime movement of cocaine on vessels in the eastern
    Pacific Ocean.
        (2) Of the amount authorized to be appropriated pursuant to section
    301(20) for drug interdiction and counter-drug activities, $10,500,000
    shall be available for the purpose of conducting the counter-drug
    operation known as Caper Focus.
        (c) Patrol Coastal Craft for Drug Interdiction by Southern
    Command.--Of the amount authorized to be appropriated pursuant to
    section 301(20) for drug interdiction and counter-drug activities,
    $14,500,000 shall be available for the purpose of equipping and
    operating six of the Cyclone-class coastal defense ships of the
    Department of Defense in the Caribbean Sea and eastern Pacific Ocean in
    support of the drug interdiction efforts of the United States Southern
    Command.
        (d) Resulting Availability of Funds for Counterproliferation and
    Counterterrorism Activities.--(1) In light of subsection (c), of the
    amount authorized to be appropriated pursuant to section 301(5) for the
    Special Operations Command, $4,500,000 shall be available for the
    purpose of increased training and related operations in support of the
    activities of the Special Operations Command regarding
    counterproliferation of weapons of mass destruction and
    counterterrorism.

    [[Page 112 STAT. 2123]]

        (2) The amount made available under this subsection is in addition
    to other funds authorized to be appropriated under section 301(5) for
    the Special Operations Command for such purpose.

            Subtitle D--Miscellaneous Report Requirements and Repeals

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

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

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

        (a) <<NOTE: Deadline.>>  Report Required.--Not later than March 30,
    1999, the Secretary of Defense shall submit to Congress a report
    evaluating the following:
                (1) The feasibility of tagging hydrocarbon fuels used by the
            Department of Defense for the purposes of analyzing and
            identifying such fuels.
                (2) The deterrent effect of such tagging on the theft and
            misuse of fuels purchased by the Department.
                (3) The extent to which such tagging would assist in
            determining the source of surface and underground pollution in
            locations having separate fuel storage facilities of the
            Department and of civilian companies.

        (b) System Elements.--In preparing the report, the Secretary shall
    ensure that any tagging system for the Department of Defense considered
    by the Secretary satisfies the following requirements:
                (1) The tagging system would not harm the environment.
                (2) Each chemical that would be used in the tagging system
            is--
                        (A) approved for use under the Toxic Substances
                    Control Act (15 U.S.C. 2601 et seq.); and
                        (B) substantially similar to the fuel to which
                    added, as determined in accordance with criteria
                    established by the Environmental Protection Agency for
                    the introduction of additives into hydrocarbon fuels.
                (3) The tagging system would permit a determination if a tag
            is present and a determination if the concentration of a tag has
            changed in order to facilitate identification of tagged fuels
            and detection of dilution of tagged fuels.
                (4) The tagging system would not impair or degrade the
            suitability of tagged fuels for their intended use.

        (c) Recommendations.--The report shall include any recommendations
    for legislation relating to the tagging of hydrocarbon fuels by the
    Department of Defense that the Secretary considers appropriate.

    [[Page 112 STAT. 2124]]

                    Subtitle E--Armed Forces Retirement Home

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

        (a) Appointment and Qualifications of Director and Deputy
    Director.--Subsection (a) of section 1517 of the Armed Forces Retirement
    Home Act of 1991 (24 U.S.C. 417) is amended--
                (1) in paragraph (2)--
                        (A) by striking out ``Each Director'' and inserting
                    in lieu thereof ``The Director of the United States
                    Soldiers' and Airmen's Home''; and
                        (B) by striking out subparagraph (B) and inserting
                    in lieu thereof the following:
                ``(B) meet the requirements of paragraph (4).'';
                (2) by redesignating paragraph (3) as paragraph (5); and
                (3) by inserting after paragraph (2) the following new
            paragraphs (3) and (4):

        ``(3) The Director, and any Deputy Director, of the Naval Home shall
    be appointed by the Secretary of Defense from among persons recommended
    by the Secretaries of the military departments who--
                ``(A) in the case of the position of Director, are
            commissioned officers of the Armed Forces serving on active duty
            in a pay grade above O-5;
                ``(B) in the case of the position of Deputy Director, are
            commissioned officers of the Armed Forces serving on active duty
            in a pay grade above O-4; and
                ``(C) meet the requirements of paragraph (4).

        ``(4) Each Director shall have appropriate leadership and management
    skills, an appreciation and understanding of the culture and norms
    associated with military service, and significant military
    background.''.
        (b) Term of Director and Deputy Director.--Subsection (c) of such
    section is amended--
                (1) by striking out ``(c) Term of Director.--'' and all that
            follows through ``A Director'' in the second sentence and
            inserting in lieu thereof ``(c) Terms of Directors.--(1) The
            term of office of the Director of the United States Soldiers'
            and Airmen's Home shall be five years. The Director''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Director and the Deputy Director of the Naval Home shall
    serve at the pleasure of the Secretary of Defense.''.
        (c) Definitions.--Such section is further amended by adding at the
    end the following new subsection:
        ``(g) Definitions.--In this section:
                ``(1) The term `United States Soldiers' and Airmen's Home'
            means the separate facility of the Retirement Home that is known
            as the United States Soldiers' and Airmen's Home.
                ``(2) The term `Naval Home' means the separate facility of
            the Retirement Home that is known as the Naval Home.''.

        (d) <<NOTE: 24 USC 417 note.>>  Effective Date.--The amendments made
    by this section shall take effect on October 1, 1998.

    [[Page 112 STAT. 2125]]

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

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

    ``SEC. 1518. INSPECTION OF RETIREMENT HOME.

        ``(a) <<NOTE: Records.>>  Triennial Inspection.--Every three years
    the Inspector General of a military department shall inspect the
    Retirement Home, including the records of the Retirement Home.

        ``(b) Alternating Duty Among Inspectors General.--The duty to
    inspect the Retirement Home shall alternate among the Inspector General
    of the Army, the Naval Inspector General, and the Inspector General of
    the Air Force on such schedule as the Secretary of Defense shall direct.
        ``(c) <<NOTE: Deadline.>>  Reports.--Not later than 45 days after
    completing an inspection under subsection (a), the Inspector General
    carrying out the inspection shall submit to the Retirement Home Board,
    the Secretary of Defense, and Congress a report describing the results
    of the inspection and containing such recommendations as the Inspector
    General considers appropriate.''.

        (b) <<NOTE: 24 USC 418 note.>>  First Inspection.--The first
    inspection under section 1518 of the Armed Forces Retirement Home Act of
    1991, as amended by subsection (a), shall be carried out during fiscal
    year 1999.

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

        Section 1053 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2650) is amended--
                (1) in subsection (a), by striking out ``may convey, by sale
            or otherwise,'' and inserting in lieu thereof ``shall convey by
            sale''; and
                (2) by striking out subsection (b) and inserting in lieu
            thereof the following new subsection (b):

        ``(b) Manner, Terms and Conditions of Disposal.--(1) The sale under
    subsection (a) shall be made to a neighboring nonprofit organization
    from whose extensive educational and charitable services the public
    benefits and has benefited from for more than 100 years, or an entity or
    entities related to such organization, and whose substantial investment
    in the neighborhood is consistent with the continued existence and
    purpose of the Armed Forces Retirement Home.
        ``(2) As consideration for the real property conveyance under
    subsection (a), the purchaser selected under paragraph (1) shall pay to
    the United States an amount equal to the fair market value of the real
    property at its highest and best economic use, as determined by the
    Armed Forces Retirement Home Board, based on an independent
    appraisal.''.

                Subtitle F--Matters Relating to Defense Property

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

        (a) <<NOTE: Deadline.>>  Plan Required.--Not later than March 1,
    1999, the Secretary of Defense shall submit to Congress a plan to
    address the

    [[Page 112 STAT. 2126]]

    problems with the sale or other disposal of excess and surplus defense
    materials identified in the report submitted to Congress by the
    Secretary of Defense on June 5, 1998, pursuant to section 1067 of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
    85; 111 Stat. 1896). The plan shall provide for the following:
                (1) Implementation for all appropriate Department personnel
            of the mandatory demilitarization training specified in
            Department of Defense revised manual 4160.21-M-1.
                (2) Improvement of oversight of the performance of
            demilitarization functions and the maintenance of
            demilitarization codes throughout the life cycle of defense
            materials.
                (3) Assignment of accurate demilitarization codes and the
            issuance of accurate demilitarization execution instructions
            during the system planning phases of the acquisition process.
                (4) Implementation of such recommendations of the Defense
            Science Board task force appointed by the Under Secretary of
            Defense for Acquisition and Technology to consider the control
            of military excess and surplus property as the Secretary of
            Defense considers to be appropriate.

        (b) Demilitarization Training.--In connection with the
    demilitarization training that is required to be addressed in the plan,
    the Secretary shall indicate the time frame for full implementation of
    such training and the number of Department of Defense personnel to be
    trained.
        (c) Centralized Demilitarization Functions.--In connection with the
    matters specified in paragraphs (2) and (3) of subsection (a) that are
    required to be addressed in the plan, the Secretary shall consider
    options for the centralization of demilitarization functions and
    responsibilities in a single office or agency. The Secretary shall
    specify in the plan the responsible office or agency, and indicate the
    time frame for centralizing demilitarization functions and
    responsibilities, unless the Secretary determines that it is not
    practical or appropriate to centralize demilitarization functions and
    responsibilities, in which case the Secretary shall provide the reasons
    for the determination.
        (d) Draft Legislation.--The Secretary shall include in the plan any
    draft legislation that the Secretary considers appropriate to clarify
    the authority of the Government to recover critical and sensitive
    defense property that has been inadequately demilitarized.
        (e) Related Reports.--(1) The Secretary shall submit with the plan--
                (A) a copy of recommendations of the Defense Science Board
            task force referred to in subsection (a)(4); and
                (B) a copy of the report prepared by an independent
            contractor in accordance with the Secretary's report referred to
            in subsection (a), at the request of the Defense Logistics
            Agency, to address options for centralizing demilitarization
            responsibilities, including a central demilitarization office
            and a central system for coding and maintaining demilitarization
            codes through the life cycle of the property involved.

        (2) With respect to the report of the independent contractor
    described in paragraph (1)(B), the Secretary shall provide an evaluation
    of the recommendations contained in the report and any plans by the
    Secretary for implementing the recommendations.

    [[Page 112 STAT. 2127]]

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

        (a) Authority.--The Secretary of the Air Force may convey, without
    consideration, to the Collings Foundation, Stow, Massachusetts (in this
    section referred to as the ``foundation''), all right, title, and
    interest of the United States in and to one surplus F-4 Phantom II
    aircraft. The conveyance shall be made by means of a conditional deed of
    gift.
        (b) Condition of Aircraft.--The Secretary may not convey ownership
    of the aircraft under subsection (a) until the Secretary determines that
    the foundation has altered the aircraft in such manner as the Secretary
    determines necessary to ensure that the aircraft does not have any
    capability for use as a platform for launching or releasing munitions or
    any other combat capability that it was designed to have. The Secretary
    is not required to repair or alter the condition of the aircraft before
    conveying ownership of the aircraft.
        (c) Reverter Upon Breach of Conditions.--The Secretary shall include
    in the instrument of conveyance of the aircraft--
                (1) a condition that the foundation not convey any ownership
            interest in, or transfer possession of, the aircraft to any
            other party without the prior approval of the Secretary;
                (2) a condition that the foundation operate and maintain the
            aircraft in compliance with all applicable limitations and
            maintenance requirements imposed by the Administrator of the
            Federal Aviation Administration; and
                (3) a condition that if the Secretary determines at any time
            that the foundation has conveyed an ownership interest in, or
            transferred possession of, the aircraft to any other party
            without the prior approval of the Secretary, or has failed to
            comply with the condition set forth in paragraph (2), all right,
            title, and interest in and to the aircraft, including any repair
            or alteration of the aircraft, shall revert to the United
            States, and the United States shall have the right of immediate
            possession of the aircraft.

        (d) Conveyance at No Cost to the United States.--The conveyance of
    an aircraft authorized by this section shall be made at no cost to the
    United States. Any costs associated with such conveyance, costs of
    determining compliance with subsection (b), and costs of operation and
    maintenance of the aircraft conveyed shall be borne by the foundation.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    this section as the Secretary considers appropriate to protect the
    interests of the United States.
        (f ) Clarification of Liability.--Notwithstanding any other
    provision of law, upon the conveyance of ownership of the F-4 Phantom II
    aircraft to the foundation under subsection (a), the United States shall
    not be liable for any death, injury, loss, or damage that results from
    any use of that aircraft by any person other than the United States.

    [[Page 112 STAT. 2128]]

                 Subtitle G--Other Department of Defense Matters

    SEC. 1061. <<NOTE: 5 USC 5520a note.>>  PILOT PROGRAM ON ALTERNATIVE
                NOTICE OF RECEIPT OF LEGAL PROCESS FOR GARNISHMENT OF
                FEDERAL PAY FOR CHILD SUPPORT AND ALIMONY.

        (a) Program Required.--The Secretary of Defense shall conduct a
    pilot program on alternative notice procedures for withholding or
    garnishment of pay for the payment of child support and alimony under
    section 459 of the Social Security Act (42 U.S.C. 659).
        (b) Purpose.--The purpose of the pilot program is to test the
    efficacy of providing notice in accordance with subsection (c) to the
    person whose pay is to be withheld or garnished.
        (c) Authorization of Alternative To Providing Copy of Notice or
    Service Received by the Secretary.--(1) Under the pilot program,
    whenever the Secretary of Defense (acting through the DOD section 459
    agent) provides a section 459 notice to an individual, the Secretary may
    include as part of that notice the information specified in subsection
    (e) in lieu of sending with that notice a copy (otherwise required
    pursuant to the parenthetical phrase in section 459(c)(2)(A) of the
    Social Security Act) of the notice or service received by the DOD
    section 459 agent with respect to that individual's child support or
    alimony payment obligations.
        (2) Under the pilot program, whenever the Secretary of Defense
    (acting through the DOD section 5520a agent) provides a section 5520a
    notice to an individual, the Secretary may include as part of that
    notice the information specified in subsection (e) in lieu of sending
    with that notice a copy (otherwise required pursuant to the second
    parenthetical phrase in section 5520a(c) of title 5, United States Code)
    of the legal process received by the DOD section 5520a agent with
    respect to that individual.
        (d) Definitions.--For purposes of this section:
                (1) DOD section 459 agent.--The term ``DOD section 459
            agent'' means the agent or agents designated by the Secretary of
            Defense under subsection (c)(1)(A) of section 459 of the Social
            Security Act (42 U.S.C. 659) to receive orders and accept
            service of process in matters related to child support or
            alimony.
                (2) Section 459 notice.--The term ``section 459 notice''
            means, with respect to the Department of Defense, the notice
            required by subsection (c)(2)(A) of section 459 of the Social
            Security Act (42 U.S.C. 659) to be sent to an individual in
            writing upon the receipt by the DOD section 459 agent of notice
            or service with respect to the individual's child support or
            alimony payment obligations.
                (3) DOD section 5520a agent.--The term ``DOD section 5520a
            agent'' means a person who is designated by law or regulation to
            accept service of process to which the Department of Defense is
            subject under section 5520a of title 5, United States Code
            (including the regulations promulgated under subsection (k) of
            that section).
                (4) Section 5520a notice.--The term ``section 5520a notice''
            means, with respect to the Department of Defense, the notice
            required by subsection (c) of section 5520a of title 5, United
            States Code, to be sent in writing to an employee (or, pursuant

    [[Page 112 STAT. 2129]]

            to the regulations promulgated under subsection (k) of that
            section, to a member of the Armed Forces) upon the receipt by
            the DOD section 5520a agent of legal process covered by that
            section.

        (e) Alternative Requirements.--The information referred to in
    subsection (c) that is to be included as part of a section 459 notice or
    section 5520a notice sent to an individual (in lieu of sending with that
    notice a copy of the notice or service received by the DOD section 459
    agent or the DOD section 5520a agent) is the following:
                (1) A description of the pertinent court order, notice to
            withhold, or other order, process, or interrogatory received by
            the DOD section 459 agent or the DOD section 5520a agent.
                (2) The identity of the court or judicial forum involved and
            (in the case of a notice or process concerning the ordering of a
            support or alimony obligation) the case number, the amount of
            the obligation, and the name of the beneficiary.
                (3) Information on how the individual may obtain from the
            Department of Defense a copy of the notice, service, or legal
            process, including an address and telephone number that the
            individual may be contacted for the purpose of obtaining such a
            copy.

        (f ) Period of Pilot Program.--The Secretary shall commence the
    pilot program not later than 90 days after the date of the enactment of
    this Act. The pilot program shall terminate on September 30, 2001.
        (g) <<NOTE: Deadline.>>  Report.--Not later than January 1, 2001,
    the Secretary shall submit to Congress a report describing the
    experience of the Department of Defense under the authority provided by
    this section. The report shall include the following:
                (1) The number of section 459 notices provided by the DOD
            section 459 agent during the period the authority provided by
            this section was in effect.
                (2) The number of individuals who requested the DOD section
            459 agent to provide to them a copy of the actual notice or
            service.
                (3) Any complaint the Secretary received by reason of not
            having provided the actual notice or service in the section 459
            notice.
                (4) The number of section 5520a notices provided by the DOD
            section 5520a agent during the period the authority provided by
            this section was in effect.
                (5) The number of individuals who requested the DOD section
            5520a agent to provide to them a copy of the actual legal
            process.
                (6) Any complaint the Secretary received by reason of not
            having provided the actual legal process in the section 5520a
            notice.

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

        (a) Requirement for Prior Approval of Secretary of Defense.--
    Subsection (c) of section 2011 of title 10, United States Code, is
    amended by inserting after the first sentence the following new
    sentence: ``The regulations shall require that training activities may
    be carried out under this section only with the prior approval of the
    Secretary of Defense.''.

    [[Page 112 STAT. 2130]]

        (b) <<NOTE: 10 USC 2011.>>  Elements of Annual Report.--Subsection
    (e) of such section is amended by adding at the end the following new
    paragraphs:
                ``(5) A summary of the expenditures under this section
            resulting from the training for which expenses were paid under
            this section.
                ``(6) A discussion of the unique military training benefit
            to United States special operations forces derived from the
            training activities for which expenses were paid under this
            section.''.

    SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

        (a) United States Military Academy.--(1) Chapter 403 of title 10,
    United States Code, is amended by adding at the end the following new
    section:

    ``Sec. 4358. Grants for faculty research for scientific, literary, and
                            educational purposes: acceptance; authorized
                            grantees

        ``(a) Acceptance of Research Grants.--The Secretary of the Army may
    authorize the Superintendent of the Academy to accept qualifying
    research grants under this section. Any such grant may only be accepted
    if the work under the grant is to be carried out by a professor or
    instructor of the Academy for a scientific, literary, or educational
    purpose.
        ``(b) Qualifying Grants.--A qualifying research grant under this
    section is a grant that is awarded on a competitive basis by an entity
    referred to in subsection (c) for a research project with a scientific,
    literary, or educational purpose.
        ``(c) Entities From Which Grants May be Accepted.--A grant may be
    accepted under this section only from a corporation, fund, foundation,
    educational institution, or similar entity that is organized and
    operated primarily for scientific, literary, or educational purposes.
        ``(d) Administration of Grant Funds.--The Secretary shall establish
    an account for administering funds received as research grants under
    this section. The Superintendent shall use the funds in the account in
    accordance with applicable regulations and the terms and conditions of
    the grants received.
        ``(e) Related Expenses.--Subject to such limitations as may be
    provided in appropriations Acts, appropriations available for the
    Academy may be used to pay expenses incurred by the Academy in applying
    for, and otherwise pursuing, award of a qualifying research grant.
        ``(f ) Regulations.--The Secretary of the Army shall prescribe
    regulations for the administration of this section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``4358. Grants for faculty research for scientific, literary, and
               educational purposes: acceptance; authorized grantees.''.

        (b) United States Naval Academy.--(1) Chapter 603 of title 10,
    United States Code, is amended by adding at the end the following new
    section:

    [[Page 112 STAT. 2131]]

    ``Sec. 6977. Grants for faculty research for scientific, literary, and
                            educational purposes: acceptance; authorized
                            grantees

        ``(a) Acceptance of Research Grants.--The Secretary of the Navy may
    authorize the Superintendent of the Academy to accept qualifying
    research grants under this section. Any such grant may only be accepted
    if the work under the grant is to be carried out by a professor or
    instructor of the Academy for a scientific, literary, or educational
    purpose.
        ``(b) Qualifying Grants.--A qualifying research grant under this
    section is a grant that is awarded on a competitive basis by an entity
    referred to in subsection (c) for a research project with a scientific,
    literary, or educational purpose.
        ``(c) Entities From Which Grants May be Accepted.--A grant may be
    accepted under this section only from a corporation, fund, foundation,
    educational institution, or similar entity that is organized and
    operated primarily for scientific, literary, or educational purposes.
        ``(d) Administration of Grant Funds.--The Secretary shall establish
    an account for administering funds received as research grants under
    this section. The Superintendent shall use the funds in the account in
    accordance with applicable regulations and the terms and conditions of
    the grants received.
        ``(e) Related Expenses.--Subject to such limitations as may be
    provided in appropriations Acts, appropriations available for the
    Academy may be used to pay expenses incurred by the Academy in applying
    for, and otherwise pursuing, award of a qualifying research grant.
        ``(f ) Regulations.--The Secretary of the Navy shall prescribe
    regulations for the administration of this section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``6977. Grants for faculty research for scientific, literary, and
               educational purposes: acceptance; authorized grantees.''.

        (c) United States Air Force Academy.--(1) Chapter 903 of title 10,
    United States Code, is amended by adding at the end the following new
    section:

    ``Sec. 9357. Grants for faculty research for scientific, literary, and
                            educational purposes: acceptance; authorized
                            grantees

        ``(a) Acceptance of Research Grants.--The Secretary of the Air Force
    may authorize the Superintendent of the Academy to accept qualifying
    research grants under this section. Any such grant may only be accepted
    if the work under the grant is to be carried out by a professor or
    instructor of the Academy for a scientific, literary, or educational
    purpose.
        ``(b) Qualifying Grants.--A qualifying research grant under this
    section is a grant that is awarded on a competitive basis by an entity
    referred to in subsection (c) for a research project with a scientific,
    literary, or educational purpose.
        ``(c) Entities From Which Grants May be Accepted.--A grant may be
    accepted under this section only from a corporation, fund, foundation,
    educational institution, or similar entity that is organized and
    operated primarily for scientific, literary, or educational purposes.

    [[Page 112 STAT. 2132]]

        ``(d) Administration of Grant Funds.--The Secretary shall establish
    an account for administering funds received as research grants under
    this section. The Superintendent shall use the funds in the account in
    accordance with applicable regulations and the terms and conditions of
    the grants received.
        ``(e) Related Expenses.--Subject to such limitations as may be
    provided in appropriations Acts, appropriations available for the
    Academy may be used to pay expenses incurred by the Academy in applying
    for, and otherwise pursuing, award of a qualifying research grant.
        ``(f ) Regulations.--The Secretary of the Air Force shall prescribe
    regulations for the administration of this section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``9357. Grants for faculty research for scientific, literary, and
               educational purposes: acceptance; authorized grantees.''.

    SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

        (a) Finding.--Congress finds that the report submitted to Congress
    by the Secretary of Defense on April 2, 1998, regarding the reallocation
    of the frequency spectrum used or dedicated to the Department of Defense
    and the intelligence community does not include a discussion of the
    costs to the Department of Defense that are associated with past and
    potential future reallocations of the frequency spectrum, although such
    a discussion was to be included in the report as directed in connection
    with the enactment of the National Defense Authorization Act for Fiscal
    Year 1998.
        (b) <<NOTE: Deadline.>>  Additional Report.--The Secretary of
    Defense shall, not later than October 31, 1998, submit to the Committee
    on Armed Services of the Senate and the Committee on National Security
    of the House of Representatives a report that discusses the costs
    referred to in subsection (a).

        (c) Relocation of Federal Frequencies.--Section 113(g)(1) of the
    National Telecommunications and Information Administration Organization
    Act (47 U.S.C. 923(g)(1)) is amended--
                (1) by striking out ``(1) In general.--In order'' and
            inserting in lieu thereof the following:
                ``(1) In general.--
                        ``(A) Authority of federal entities to accept
                    compensation.--In order'';
                (2) in subparagraph (A), as so designated, by striking out
            the second, third, and fourth sentences and inserting in lieu
            thereof the following: <<NOTE: Notification.>>  ``Any such
            Federal entity which proposes to so relocate shall notify the
            NTIA, which in turn shall notify the Commission, before the
            auction concerned of the marginal costs anticipated to be
            associated with such relocation or with modifications necessary
            to accommodate prospective licensees. The Commission in turn
            shall notify potential bidders of the estimated relocation or
            modification costs based on the geographic area covered by the
            proposed licenses before the auction.''; and
                (3) by adding at the end the following:
                        ``(B) Requirement to compensate federal entities.--
                    Any person on whose behalf a Federal entity incurs costs
                    under subparagraph (A) shall compensate the Federal
                    entity in advance for such costs. Such compensation may
                    take the form of a cash payment or in-kind compensation.

    [[Page 112 STAT. 2133]]

                        ``(C) Disposition of payments.--
                              ``(i) Payment by electronic funds transfer.--A
                          person making a cash payment under this paragraph
                          shall make the cash payment by depositing the
                          amount of the payment by electronic funds transfer
                          in the account of the Federal entity concerned in
                          the Treasury of the United States or in another
                          account as authorized by law.
                              ``(ii) Availability.--Subject to the
                          provisions of authorization Acts and
                          appropriations Acts, amounts deposited under this
                          subparagraph shall be available to the Federal
                          entity concerned to pay directly the costs of
                          relocation under this paragraph, to repay or make
                          advances to appropriations or funds which do or
                          will initially bear all or part of such costs, or
                          to refund excess sums when necessary.
                        ``(D) Application to certain other relocations.--The
                    provisions of this paragraph also apply to any Federal
                    entity that operates a Federal Government station
                    assigned to used electromagnetic spectrum identified for
                    reallocation under subsection (a) if before August 5,
                    1997, the Commission has not identified that spectrum
                    for service or assigned licenses or otherwise authorized
                    service for that spectrum.
                        ``(E) Implementation procedures.--The NTIA and the
                    Commission shall develop procedures for the
                    implementation of this paragraph, which procedures shall
                    include a process for resolving any differences that
                    arise between the Federal Government and commercial
                    licensees regarding estimates of relocation or
                    modification costs under this paragraph.
                        ``(F) Inapplicability to certain relocations.--With
                    the exception of the band of frequencies located at
                    1710-1755 megahertz, the provisions of this paragraph
                    shall not apply to Federal spectrum identified for
                    reallocation in the first reallocation report submitted
                    to the President and Congress under subsection (a).''.

        (d) <<NOTE: 47 USC 923 note.>>  Reports on Costs of Relocations.--
    The head of each department or agency of the Federal Government shall
    include in the annual budget submission of such department or agency to
    the Director of the Office of Management and Budget a report assessing
    the costs to be incurred by such department or agency as a result of any
    frequency relocations of such department or agency that are anticipated
    under section 113 of the National Telecommunications Information
    Administration Organization Act (47 U.S.C. 923) as of the date of such
    report.

    SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.

        (a) <<NOTE: Deadline.>>  Report Required.--Not later than March 31,
    1999, the Secretary of Defense shall submit to Congress a report on the
    roles of the Office of the Secretary of Defense and of the Joint Staff
    in the investigation of Department of Defense aviation accidents.

        (b) Content of Report.--The report shall include the
    following:

    [[Page 112 STAT. 2134]]

                (1) An assessment of whether the Office of the Secretary of
            Defense and the Joint Staff should have more direct involvement
            in the investigation of military aviation accidents.
                (2) The advisability of the Office of the Secretary of
            Defense, the Joint Staff, or another Department of Defense
            entity independent of the military departments supervising the
            conduct of aviation accident investigations.
                (3) An assessment of the minimum training and experience
            required for aviation accident investigation board presidents
            and board members.
                (4) An assessment whether or not the procedures for sharing
            the results of military aviation accident investigations among
            the military departments should be improved.
                (5) An assessment of the advisability of centralized
            training and instruction for military aircraft accident
            investigators.

        (c) <<NOTE: 10 USC 2254 note.>>  Uniform Regulations for Provision
    of Accident Investigation Update Information.--The Secretary of Defense
    shall prescribe regulations, which shall be applied uniformly across the
    Department of Defense, establishing procedures by which the military
    departments shall provide to the family members of any person involved
    in a military aviation accident periodic update reports on the conduct
    and progress of investigations into the accident.

    SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER WING OF
                NEW YORK AIR NATIONAL GUARD.

        (a) Investigation.--The Inspector General of the Department of
    Defense shall conduct a new investigation into the circumstances that
    led to the December 1, 1995, grounding of the 174th Fighter Wing of the
    New York Air National Guard. The investigation shall review those
    circumstances, examine the administrative and disciplinary actions taken
    against members of that wing, and determine whether those administrative
    and disciplinary measures were appropriate.
        (b) <<NOTE: Deadline.>>  Report.--Not later than 180 days after the
    date of the enactment of this Act, the Inspector General shall submit to
    the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report describing
    the results of the investigation under subsection (a).

    SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

        (a) Limitation on Expenditures.--Subsection (f ) of section 1083 of
    the National Defense Authorization Act for Fiscal Year 1998 (Public Law
    105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended to read as
    follows:
        ``(f ) Limitation on Expenditures.--The total amount expended by the
    Department of Defense to carry out the commemorative program for fiscal
    year 1999 may not exceed $1,820,000.''.
        (b) <<NOTE: 10 USC 113 note.>>  Redesignation of Commemoration
    Account.--The account in the Treasury known as the ``Department of
    Defense Korean Conflict Commemoration Account'' is redesignated as the
    ``Department of Defense Korean War Commemoration Account''.

        (c) <<NOTE: 10 USC 113 note.>>  Other References to Korean War.--
    Such section is further amended--
                (1) in the section heading, by striking out ``korean
            conflict'' and inserting in lieu thereof ``korean war'';
                (2) by striking out ``Korean conflict'' each place it
            appears and inserting in lieu thereof ``Korean War'';

    [[Page 112 STAT. 2135]]

                (3) in subsection (c), by striking out ``names `The
            Department of Defense Korean Conflict Commemoration','' and
            inserting in lieu thereof ``name the `Department of Defense
            Korean War Commemoration',''; and
                (4) in subsection (d)(1), by striking out ``Korean
            Conflict'' and inserting in lieu thereof ``Korean War''.

        (d) <<NOTE: 10 USC 113 note.>>  Cross References.--Any reference to
    the Department of Defense Korean Conflict Commemoration or the
    Department of Defense Korean Conflict Commemoration Account in any law,
    regulation, document, record, or other paper of the United States shall
    be considered to be a reference to the Department of Defense Korean War
    Commemoration or the Department of Defense Korean War Commemoration
    Account, respectively.

    SEC. 1068. <<NOTE: 16 USC 5409.>>  DESIGNATION OF AMERICA'S NATIONAL
                MARITIME MUSEUM.

        (a) In General.--America's National Maritime Museum is comprised of
    those museums designated by law to be museums of America's National
    Maritime Museum on the basis that they--
                (1) house a collection of maritime artifacts clearly
            representing the Nation's maritime heritage; and
                (2) provide outreach programs to educate the public about
            the Nation's maritime heritage.

        (b) Initial Designation of Museums.--The following museums (meeting
    the criteria specified in subsection (a)) are hereby designated as
    museums of America's National Maritime Museum:
                (1) <<NOTE: Virginia.>>  The Mariners' Museum, located at
            100 Museum Drive, Newport News, Virginia.
                (2) <<NOTE: New York.>>  The South Street Seaport Museum,
            located at 207 Front Street, New York, New York.

        (c) Future Designation of Other Museums Not Precluded.--The
    designation of the museums referred to in subsection (b) as museums of
    America's National Maritime Museum does not preclude the designation by
    law after the date of the enactment of this Act of any other museum that
    meets the criteria specified in subsection (a) as a museum of America's
    National Maritime Museum.
        (d) Reference to Museums.--Any reference in any law, map,
    regulation, document, paper, or other record of the United States to a
    museum designated by law to be a museum of America's National Maritime
    Museum shall be deemed to be a reference to that museum as a museum of
    America's National Maritime Museum.

    SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) <<NOTE: 10 USC 484.>>  The item relating to section 484
            in the table of sections at the beginning of chapter 23 is
            amended to read as follows:

    ``484. Annual report on aircraft inventory.''.

                (2) Section 517(a) is amended by striking out ``Except as
            provided in section 307 of title 37, the'' and inserting in lieu
            thereof ``The''.
                (3) The item relating to section 2302c in the table of
            sections at the beginning of chapter 137 is amended to read as
            follows:

    ``2302c. Implementation of electronic commerce capability.''.

    [[Page 112 STAT. 2136]]

                (4) The table of subchapters at the beginning of chapter 148
            is amended--
                        (A) by striking out ``2491'' in the item relating to
                    subchapter I and inserting in lieu thereof ``2500''; and
                        (B) by striking out the item relating to subchapter
                    IV and inserting in lieu thereof the following:

    ``IV. Manufacturing Technology.................................. 2521''.

                (5) The subchapter heading for subchapter IV of chapter 148
            is amended to read as follows:

                   ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''

                (6) Section 7045(c) is amended by striking out ``the'' after
            ``are subject to''.
                (7) Section 7572(b) is repealed.
                (8) Section 12683(b)(2) is amended by striking out ``; or''
            at the end and inserting in lieu thereof a period.

        (b) <<NOTE: Effective date.>>  Public Law 105-85.--Effective as of
    November 18, 1997, and as if included therein as enacted, the National
    Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) is
    amended as follows:
                (1) Section 389(g) (111 Stat. 1715) <<NOTE: 10 USC 2461
            note.>>  is amended by striking out ``Secretary of Defense'' and
            inserting in lieu thereof ``Comptroller General''.
                (2) Section 1006(a) (111 Stat. 1869) <<NOTE: 10 USC 2221.>>
            is amended by striking out ``or'' in the quoted matter and
            inserting in lieu thereof ``and''.
                (3) Section 3133(b)(3) (111 Stat. 2036) is amended by
            striking out ``III'' and inserting in lieu thereof ``XIV''.

        (c)  Defense Against Weapons of Mass Destruction Act of 1996.--The
    Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of
    Public Law 104-201) is amended as follows:
                (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat.
            2726) is amended by striking out ``(22 U.S.C. 2156a(c))'' and
            inserting in lieu thereof ``(42 U.S.C. 2139a(c))''.
                (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat.
            2727) is amended by striking out ``established under section
            1342'' and inserting in lieu thereof ``of the National Security
            Council''.
                (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is amended
            by striking out ``1341'' and ``1342'' and inserting in lieu
            thereof ``1441'' and ``1442'', respectively.
                (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is
            amended by striking out ``the National Defense Authorization Act
            for Fiscal Years 1993 and 1994'' and inserting in lieu thereof
            ``title XIV of the National Defense Authorization Act for Fiscal
            Year 1993 (Public Law 102-484; 22 U.S.C. 5901 et seq.)''.

        (d) Other Acts.--
                (1) Section 18(c)(1) of the Office of Federal Procurement
            Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the
            period at the end of subparagraph (A) and inserting in lieu
            thereof a semicolon.
                (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C.
            3142(c)(2)) is amended by striking out ``included in the most
            recent plan submitted to the Congress under section 2506 of
            title 10'' and inserting in lieu thereof ``identified in the
            most recent assessment prepared under section 2505 of title
            10''.

    [[Page 112 STAT. 2137]]

        (e) <<NOTE: 10 USC 101 note.>>  Coordination With Other
    Amendments.--For purposes of applying amendments made by provisions of
    this Act other than provisions of this section, this section shall be
    treated as having been enacted immediately before the other provisions
    of this Act.

                            Subtitle H--Other Matters

    SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK
                INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

        (a) In General.--Section 1205(b) of the Merchant Marine Act, 1936
    (46 U.S.C. App. 1285(b)), is amended by adding at the end the following
    new sentence: ``The signature of the President (or of an official
    designated by the President) on the agreement shall be treated as an
    expression of the approval required under section 1202(a) to provide the
    insurance.''.
        (b) <<NOTE: Applicability. 46 USC app. 1285 note.>>  Effective
    Date.--The amendment made by subsection (a) shall apply only to a
    signature of the President (or of an official designated by the
    President) on or after the date of the enactment of this Act.

    SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF
                1950.

        (a) Extension of Termination Date.--Section 717(a) of the Defense
    Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking
    ``September 30, 1998'' and inserting ``September 30, 1999''.
        (b) Extension of Authorization.--Section 711(b) of the Defense
    Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking
    ``and 1998'' and inserting ``1998, and 1999''.

    SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE SECRETARY OF
                VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED STATES.

        (a) Requirement.--Section 2301 of title 38, United States Code, as
    amended by section 517, is further amended by adding at the end the
    following new subsection:
        ``(g)(1) The Secretary may not procure any flag for the purposes of
    this section that is not wholly produced in the United States.
        ``(2)(A) The Secretary may waive the requirement of paragraph (1) if
    the Secretary determines--
                ``(i) that the requirement cannot be reasonably met; or
                ``(ii) that compliance with the requirement would not be in
            the national interest of the United States.

        ``(B) <<NOTE: Notice.>>  The Secretary shall submit to Congress in
    writing notice of a determination under subparagraph (A) not later than
    30 days after the date on which such determination is made.

        ``(3) For the purpose of paragraph (1), a flag shall be considered
    to be wholly produced in the United States only if--
                ``(A) the materials and components of the flag are entirely
            grown, manufactured, or created in the United States;
                ``(B) the processing (including spinning, weaving, dyeing,
            and finishing) of such materials and components is entirely
            performed in the United States; and
                ``(C) the manufacture and assembling of such materials and
            components into the flag is entirely performed in the United
            States.''.

    [[Page 112 STAT. 2138]]

        (b) <<NOTE: Applicability. 10 USC 2301 note.>>  Effective Date.--
    Subsection (g) of section 2301 of title 38, United States Code, as added
    by subsection (a), shall apply to flags procured by the Secretary of
    Veterans Affairs for the purposes of section 2301 of title 38, United
    States Code, after the end of the 30-day period beginning on the date of
    the enactment of this Act.

    SEC. 1074. <<NOTE: 26 USC 121 note.>> SENSE OF CONGRESS CONCERNING TAX
                TREATMENT OF PRINCIPAL RESIDENCE OF MEMBERS OF ARMED FORCES
                WHILE AWAY FROM HOME ON ACTIVE DUTY.

        It is the sense of Congress that a member of the Armed Forces should
    be treated for purposes of section 121 of the Internal Revenue Code of
    1986 as using property as a principal residence during any continuous
    period that the member is serving on active duty for 180 days or more
    with the Armed Forces, but only if the member used the property as a
    principal residence for any period during or immediately before that
    period of active duty.

    SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO
                CERTAIN EMPLOYEES.

        (a) Limitation on State Authority To Tax Compensation Paid to
    Individuals Performing Services at Fort Campbell, Kentucky.--
                (1) In general.--Chapter 4 of title 4, United States Code,
            is amended by adding at the end the following:

    ``Sec. 115. Limitation on State authority to tax compensation paid to
                            individuals performing services at Fort
                            Campbell, Kentucky

        ``Pay and compensation paid to an individual for personal services
    at Fort Campbell, Kentucky, shall be subject to taxation by the State or
    any political subdivision thereof of which such employee is a
    resident.''.
                (2) Conforming amendment.--The table of sections for chapter
            4 of title 4, United States Code, is amended by adding at the
            end the following:

    ``115. Limitation on State authority to tax compensation paid to
               individuals performing services at Fort Campbell,
               Kentucky.''.

                 <<NOTE: Applicability. 4 USC 115 note.>> (3) Effective
            date.--The amendments made by this subsection shall apply to pay
            and compensation paid after the date of the enactment of this
            Act.

        (b) Clarification of State Authority To Tax Compensation Paid to
    Certain Federal Employees.--
                (1) In general.--Section 111 of title 4, United States Code,
            is amended--
                        (A) by inserting ``(a) General Rule.--'' before
                    ``The United States'' the first place it appears; and
                        (B) by adding at the end the following:

        `` <<NOTE: Oregon. Washington.>> (b) Treatment of Certain Federal
    Employees Employed at Federal Hydroelectric Facilities Located on the
    Columbia River.--Pay or compensation paid by the United States for
    personal services as an employee of the United States at a hydroelectric
    facility--
                ``(1) which is owned by the United States;
                ``(2) which is located on the Columbia River; and
                ``(3) portions of which are within the States of Oregon and
            Washington,

    [[Page 112 STAT. 2139]]

    shall be subject to taxation by the State or any political subdivision
    thereof of which such employee is a resident.
         <<NOTE: South Dakota. Nebraska.>> ``(c) Treatment of Certain
    Federal Employees Employed at Federal Hydroelectric Facilities Located
    on the Missouri River.--Pay or compensation paid by the United States
    for personal services as an employee of the United States at a
    hydroelectric facility--
                ``(1) which is owned by the United States;
                ``(2) which is located on the Missouri River; and
                ``(3) portions of which are within the States of South
            Dakota and Nebraska,

    shall be subject to taxation by the State or any political subdivision
    thereof of which such employee is a resident.''.
                 <<NOTE: 4 USC 111 note.>> (2) Effective date.--The
            amendment made by this subsection shall apply to pay and
            compensation paid after the date of the enactment of this Act.

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

    SEC. 1101. <<NOTE: 5 USC 3104 note.>> DEFENSE ADVANCED RESEARCH PROJECTS
                AGENCY EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR
                TECHNICAL PERSONNEL.

        (a) Program Authorized.--During the 5-year period beginning on the
    date of the enactment of this Act, the Secretary of Defense may carry
    out a program of experimental use of the special personnel management
    authority provided in subsection (b) in order to facilitate recruitment
    of eminent experts in science or engineering for research and
    development projects administered by the Defense Advanced Research
    Projects Agency.
        (b) Special Personnel Management Authority.--Under the program, the
    Secretary may--
                (1) appoint scientists and engineers from outside the civil
            service and uniformed services (as such terms are defined in
            section 2101 of title 5, United States Code) to not more than 20
            scientific and engineering positions in the Defense Advanced
            Research Projects Agency without regard to any provision of
            title 5, United States Code, governing the appointment of
            employees in the civil service;
                (2) prescribe the rates of basic pay for positions to which
            employees are appointed under paragraph (1) at rates not in
            excess of the maximum rate of basic pay authorized for senior-

    [[Page 112 STAT. 2140]]

            level positions under section 5376 of title 5, United States
            Code, notwithstanding any provision of such title governing the
            rates of pay or classification of employees in the executive
            branch; and
                (3) pay any employee appointed under paragraph (1) payments
            in addition to basic pay within the limit applicable to the
            employee under subsection (d)(1).

        (c) Limitation on Term of Appointment.--(1) Except as provided in
    paragraph (2), the service of an employee under an appointment under
    subsection (b)(1) may not exceed 4 years.
        (2) The Secretary may, in the case of a particular employee, extend
    the period to which service is limited under paragraph (1) by up to 2
    years if the Secretary determines that such action is necessary to
    promote the efficiency of the Defense Advanced Research Projects Agency.
        (d) Limitations on Additional Payments.--(1) The total amount of the
    additional payments paid to an employee under subsection (b)(3) for any
    12-month period may not exceed the least of the following amounts:
                (A) $25,000.
                (B) The amount equal to 25 percent of the employee's annual
            rate of basic pay.
                (C) The amount of the limitation that is applicable for a
            calendar year under section 5307(a)(1) of title 5, United States
            Code.

        (2) An employee appointed under subsection (b)(1) is not eligible
    for any bonus, monetary award, or other monetary incentive for service
    except for payments authorized under subsection (b)(3).
        (e) Period of Program.--(1) The program authorized under this
    section shall terminate at the end of the 5-year period referred to in
    subsection (a).
        (2) After the termination of the program--
                (A) no appointment may be made under paragraph (1) of
            subsection (b);
                (B) a rate of basic pay prescribed under paragraph (2) of
            that subsection may not take effect for a position; and
                (C) no period of service may be extended under subsection
            (c)(1).

        (f ) Savings Provisions.--In the case of an employee who, on the day
    before the termination of the program, is serving in a position pursuant
    to an appointment under subsection (b)(1)--
                (1) the termination of the program does not terminate the
            employee's employment in that position before the expiration of
            the lesser of--
                        (A) the period for which the employee was appointed;
                    or
                        (B) the period to which the employee's service is
                    limited under subsection (c), including any extension
                    made under paragraph (2) of that subsection before the
                    termination of the program; and
                (2) the rate of basic pay prescribed for the position under
            subsection (b)(2) may not be reduced for so long (within the
            period applicable to the employee under paragraph (1)) as the
            employee continues to serve in the position without a break in
            service.

         <<NOTE: Deadine.>> (g) Annual Report.--(1) Not later than October
    15 of each year, beginning in 1999 and ending in 2004, the Secretary of

    [[Page 112 STAT. 2141]]

    Defense shall submit a report on the program to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives. The report submitted in a year shall cover the
    12-month period ending on the day before the anniversary, in that year,
    of the date of the enactment of this Act.

        (2) The annual report shall contain, for the period covered by the
    report, the following:
    Termination date.
                (A) A detailed discussion of the exercise of authority under
            this section.
                (B) The sources from which individuals appointed under
            subsection (b)(1) were recruited.
                (C) The methodology used for identifying and selecting such
            individuals.
                (D) Any additional information that the Secretary considers
            helpful for assessing the utility of the authority under this
            section.

    SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE
                UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

        Section 9314(b)(2)(B) of title 10, United States Code, is amended by
    striking out ``section 5306(e)'' and inserting in lieu thereof ``section
    5373''.

    SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST RESULTS OF
                CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT COMMAND.

        (a) In General.--Chapter 643 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 7479. Civil service mariners of Military Sealift Command: release
                            of drug test results to Coast Guard

        ``(a) Release of Drug Test Results to Coast Guard.--The Secretary of
    the Navy may release to the Commandant of the Coast Guard the results of
    a drug test of any employee of the Department of the Navy who is
    employed in any capacity on board a vessel of the Military Sealift
    Command. Any such release shall be in accordance with the standards and
    procedures applicable to the disclosure and reporting to the Coast Guard
    of drug tests results and drug test records of individuals employed on
    vessels documented under the laws of the United States.
        ``(b) Waiver.--The results of a drug test of an employee may be
    released under subsection (a) without the prior written consent of the
    employee that is otherwise required under section 503(e) of the
    Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note).''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``7479. Civil service mariners of Military Sealift Command: release of
               drug test
               results to Coast Guard.''.

    SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

        (a) In General.--Section 5596(b) of title 5, United States Code, is
    amended--
                (1) by redesignating paragraph (4) as paragraph (5); and
                (2) by inserting after paragraph (3) the following new
            paragraph:

    [[Page 112 STAT. 2142]]

        ``(4) The pay, allowances, or differentials granted under this
    section for the period for which an unjustified or unwarranted personnel
    action was in effect shall not exceed that authorized by the applicable
    law, rule, regulations, or collective bargaining agreement under which
    the unjustified or unwarranted personnel action is found, except that in
    no case may pay, allowances, or differentials be granted under this
    section for a period beginning more than 6 years before the date of the
    filing of a timely appeal or, absent such filing, the date of the
    administrative determination.''.
        (b) Conforming Amendment.--Section 7121 of title 5, United States
    Code, is amended by adding at the end the following new subsection:
        ``(h) Settlements and awards under this chapter shall be subject to
    the limitations in section 5596(b)(4) of this title.''.

    SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN EMPLOYEES
                AT INSTALLATIONS IN THE REPUBLIC OF PANAMA TO BE CLOSED
                PURSUANT TO THE PANAMA CANAL TREATY OF 1977.

        Section 6304(d)(3)(A) of title 5, United States Code, is amended by
    inserting ``the closure of an installation of the Department of Defense
    in the Republic of Panama in accordance with the Panama Canal Treaty of
    1977,'' after ``2687 note) during any period,''.

    SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR EMPLOYMENT OF
                MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.

        Section 1792 of title 10, United States Code, is amended--
                (1) by striking out subsection (d); and
                (2) by redesignating subsection (e) as subsection (d).

    SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS OUTSIDE THE
                UNITED STATES.

        Section 6103(b) of title 5, United States Code, is amended by
    inserting after paragraph (2) the following new paragraph:
                ``(3) Instead of a holiday that is designated under
            subsection (a) to occur on a Monday, for an employee at a duty
            post outside the United States whose basic workweek is other
            than Monday through Friday, and for whom Monday is a regularly
            scheduled workday, the legal public holiday is the first workday
            of the workweek in which the Monday designated for the
            observance of such holiday under subsection (a) occurs.''.

    SEC. 1108. <<NOTE: 5 USC 7301 note.>> CONTINUATION OF RANDOM DRUG
                TESTING PROGRAM FOR CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

        (a) Continuation of Existing Program.--The Secretary of Defense
    shall continue to actively carry out the drug testing program,
    originally required by section 3(a) of Executive Order No. 12564 (51
    Fed. Reg. 32889; September 15, 1986), involving civilian employees of
    the Department of Defense who are considered to be employees in
    sensitive positions. The Secretary shall comply with the drug testing
    procedures prescribed pursuant to section 4 of the Executive order.
        (b) Testing Upon Reasonable Suspicion of Illegal Drug Use.--The
    Secretary of Defense shall ensure that the drug testing program referred
    to in subsection (a) authorizes the testing of a civilian employee of
    the Department of Defense for illegal drug

    [[Page 112 STAT. 2143]]

    use when there is a reasonable suspicion that the employee uses illegal
    drugs.
        (c) Notification to Applicants.--The Secretary of Defense shall
    notify persons who apply for employment with the Department of Defense
    that, as a condition of employment by the Department, the person may be
    required to submit to drug testing under the drug testing program
    required by Executive Order No. 12564 (51 Fed. Reg. 32889; September 15,
    1986) pursuant to the terms of the Executive order.
        (d) Definitions.--In this section, the terms ``illegal drugs'' and
    ``employee in a sensitive position'' have the meanings given such terms
    in section 7 of Executive Order No. 12564 (51 Fed. Reg. 32889; September
    15, 1986).

    SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT
                AUTHORITY.

        (a) Civil Service Retirement System.--Section 8336 of title 5,
    United States Code, is amended--
                (1) in subsection (d)(2), by inserting ``except in the case
            of an employee described in subsection (o)(1),'' after ``(2)'';
            and
                (2) by adding at the end the following:

        ``(o)(1) An employee of the Department of Defense who is separated
    from the service under conditions described in paragraph (2) after
    completing 25 years of service or after becoming 50 years of age and
    completing 20 years of service is entitled to an annuity.
        ``(2) Paragraph (1) applies to an employee who--
                ``(A) has been employed continuously by the Department of
            Defense for more than 30 days before the date on which the
            Secretary concerned requests the determinations required under
            subparagraph (D)(i);
                ``(B) is serving under an appointment that is not limited by
            time;
                ``(C) has not received a decision notice of involuntary
            separation for misconduct or unacceptable performance that is
            pending decision; and
                ``(D) is separated from the service voluntarily during a
            period in which--
                        ``(i) the Department of Defense or the military
                    department or subordinate organization within the
                    Department of Defense or military department in which
                    the employee is serving is undergoing a major
                    reorganization, a major reduction in force, or a major
                    transfer of function, and employees comprising a
                    significant percentage of the employees serving in that
                    department or organization are to be separated or
                    subject to an immediate reduction in the rate of basic
                    pay (without regard to subchapter VI of chapter 53, or
                    comparable provisions of law), as determined by the
                    Office of Personnel Management (under regulations
                    prescribed by the Office) upon the request of the
                    Secretary concerned; and
                        ``(ii) the employee is within the scope of an offer
                    of voluntary early retirement (as defined by
                    organizational unit, occupational series or level,
                    geographical location, any other similar factor that the
                    Office of Personnel Management determines appropriate,
                    or any combination of such definitions of scope), as
                    determined by the Secretary concerned under regulations
                    prescribed by the Office.

    [[Page 112 STAT. 2144]]

        ``(3) In this subsection, the term `Secretary concerned' means--
                ``(A) the Secretary of Defense, with respect to an employee
            of the Department of Defense not employed in a position in a
            military department;
                ``(B) the Secretary of the Army, with respect to an employee
            of the Department of the Army;
                ``(C) the Secretary of the Navy, with respect to an employee
            of the Department of the Navy; and
                ``(D) the Secretary of the Air Force, with respect to an
            employee of the Department of the Air Force.''.

        (b) Federal Employees' Retirement System.--Section 8414 of such
    title is amended--
                (1) in subsection (b)(1)(B), by inserting ``except in the
            case of an employee described in subsection (d)(1),'' after
            ``(B)''; and
                (2) by adding at the end the following:

        ``(d)(1) An employee of the Department of Defense who is separated
    from the service under conditions described in paragraph (2) after
    completing 25 years of service or after becoming 50 years of age and
    completing 20 years of service is entitled to an annuity.
        ``(2) <<NOTE: Applicability.>> Paragraph (1) applies to an employee
    who--
                ``(A) has been employed continuously by the Department of
            Defense for more than 30 days before the date on which the
            Secretary concerned requests the determinations required under
            subparagraph (D)(i);
                ``(B) is serving under an appointment that is not limited by
            time;
                ``(C) has not received a decision notice of involuntary
            separation for misconduct or unacceptable performance that is
            pending decision; and
                ``(D) is separated from the service voluntarily during a
            period in which--
                        ``(i) the Department of Defense or the military
                    department or subordinate organization within the
                    Department of Defense or military department in which
                    the employee is serving is undergoing a major
                    reorganization, a major reduction in force, or a major
                    transfer of function, and employees comprising a
                    significant percentage of the employees serving in that
                    department or organization are to be separated or
                    subject to an immediate reduction in the rate of basic
                    pay (without regard to subchapter VI of chapter 53, or
                    comparable provisions of law), as determined by the
                    Office of Personnel Management (under regulations
                    prescribed by the Office) upon the request of the
                    Secretary concerned; and
                        ``(ii) the <<NOTE: Regulations.>> employee is within
                    the scope of an offer of voluntary early retirement (as
                    defined by organizational unit, occupational series or
                    level, geographical location, any other similar factor
                    that the Office of Personnel Management determines
                    appropriate, or any combination of such definitions of
                    scope), as determined by the Secretary concerned under
                    regulations prescribed by the Office.

        ``(3) In this subsection, the term `Secretary concerned' means--
                ``(A) the Secretary of Defense, with respect to an employee
            of the Department of Defense not employed in a position in a
            military department;
                ``(B) the Secretary of the Army, with respect to an employee
            of the Department of the Army;

    [[Page 112 STAT. 2145]]

                ``(C) the Secretary of the Navy, with respect to an employee
            of the Department of the Navy; and
                ``(D) the Secretary of the Air Force, with respect to an
            employee of the Department of the Air Force.''.

        (c) Conforming Amendments.--(1) Section 8339(h) of such title is
    amended by striking out ``or ( j)'' in the first sentence and inserting
    in lieu thereof ``( j), or (o)''.
        (2) Section 8464(a)(1)(A)(i) of such title is amended by striking
    out ``or (b)(1)(B)'' and inserting in lieu thereof ``, (b)(1)(B), or
    (d)''.
         <<NOTE: 5 USC 8336 note.>> (d) Effective Date; Applicability.--The
    amendments made by this section--
                (1) shall take effect on October 1, 2000; and
                (2) shall apply with respect to an approval for voluntary
            early retirement made on or after that date.

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

             Subtitle B--Matters Relating to Contingency Operations

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

                 Subtitle C--Matters Relating to NATO and Europe

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

                            Subtitle D--Other Matters

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

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

    SEC. 1201. FINDINGS.

        Congress makes the following findings:
                (1) The contributions of the people of the United States and
            other nations have, in large measure, resulted in the suspension
            of fighting and alleviated the suffering of the people of Bosnia
            and Herzegovina since December 1995.
                (2) The United States has expended approximately
            $9,500,000,000 between 1992 and mid-1998 just in support

    [[Page 112 STAT. 2146]]

            of the United States military operations in Bosnia to achieve
            those results.
                (3) Efforts to restore the economy and political structure
            in Bosnia and Herzegovina have achieved some success in
            accordance with the Dayton Accords.
                (4) On March 3, 1998, the President certified to Congress
            (A) that the continued presence of United States forces in
            Bosnia and Herzegovina after June 30, 1998, was required in
            order to meet the national security interests of the United
            States, and (B) that United States Armed Forces will not serve
            as, or be used as, civil police in Bosnia and Herzegovina.
                (5) With that certification, the President submitted to
            Congress a report stating that the goal of the military presence
            in Bosnia and Herzegovina is to establish the conditions under
            which implementation of the Dayton Accords can continue without
            the support of a major NATO-led military force and setting forth
            the criteria for determining when that goal has been
            accomplished.
                (6) Since the administration has not specified how long
            achievement of that goal is expected to take, the mission of
            United States ground combat forces in Bosnia and Herzegovina is
            essentially of indefinite duration.
                (7) The NATO operations plan for the Stabilization Force
            (Operations Plan 10407, which went into effect on June 20, 1998,
            after approval by allied foreign ministers) incorporates all of
            the benchmarks set forth in the report referred to in paragraph
            (5) and states that the Stabilization Force will develop
            detailed criteria for assessing progress in achieving those
            benchmarks in close coordination with key international
            organizations participating in civilian implementation of the
            Dayton Accords.
                (8) The military representatives of NATO member nations have
            been tasked by the North Atlantic Council to provide estimates
            of the time likely to be required for implementation of the
            Dayton Accords.
                (9) NATO has decided to conduct formal reviews when
            appropriate (but at intervals of not more than 6 months) to
            assess the security situation and the progress being made in the
            implementation of the civil aspects of the Dayton Accords. Those
            reviews will enable the Alliance to make decisions as to
            reductions in the size or the Stabilization Force, leading to
            its eventual full withdrawal.
                (10) NATO has approved the creation of a multinational
            specialized unit of gendarmes or paramilitary police composed of
            European security forces to help promote public security in
            Bosnia and Herzegovina as a part of the post-June 1998 mission
            for the Stabilization Force.
                (11) The limit established for spending by the United States
            for the defense discretionary budget category for fiscal year
            1998 in the Balanced Budget and Emergency Deficit Control Act of
            1985 does not take into account the continued deployment of
            United States forces in Bosnia and Herzegovina after June 30,
            1998, leading to the request by the President for emergency
            supplemental appropriations for the Bosnia and Herzegovina
            mission through September 30, 1998.
                (12) Amounts for Department of Defense operations in Bosnia
            and Herzegovina during fiscal year 1999 were not

    [[Page 112 STAT. 2147]]

            included in the budget of the President for fiscal year 1999, as
            submitted to Congress on February 2, 1998.
                (13) The President requested $1,858,600,000 in emergency
            appropriations in his March 4, 1998, amendment to the fiscal
            year 1999 budget to cover the shortfall in funding in fiscal
            year 1999 for the costs of extending the mission in Bosnia.

    SEC. 1202. SENSE OF CONGRESS.

        (a) Sense of Congress Concerning United States Forces and
    Accomplishment of Tasks in Bosnia and Herzegovina.--It is the sense of
    Congress that--
                (1) United States ground combat forces should not remain in
            Bosnia and Herzegovina indefinitely in view of the worldwide
            commitments of the Armed Forces of the United States;
                (2) the President should work with NATO allies and the other
            nations whose military forces are participating in the NATO-led
            Stabilization Force to withdraw United States ground combat
            forces from Bosnia and Herzegovina within a reasonable period of
            time, consistent with the safety of those forces and the
            accomplishment of the Stabilization Force's military tasks;
                (3) a NATO-led force without the participation of United
            States ground combat forces in Bosnia and Herzegovina might be
            suitable for a follow-on force for Bosnia and Herzegovina if the
            European Security and Defense Identity is not sufficiently
            developed or is otherwise considered inappropriate for such a
            mission; and
                (4) the United States may decide to provide appropriate
            support to a Western European Union-led or NATO-led follow-on
            force for Bosnia and Herzegovina, including command and control,
            intelligence, logistics, and, if necessary, a ready reserve
            force in the region.

        (b) Sense of Congress Concerning Presidential Actions.--It is the
    sense of Congress that the President--
                (1) should inform the European NATO allies of the expression
            of the sense of Congress in subsection (a) and should strongly
            urge them to undertake preparations for establishing a Western
            European Union-led or a NATO-led force as a follow-on force to
            the Stabilization Force if needed to maintain peace and
            stability in Bosnia and Herzegovina; and
                (2) should consult closely with the congressional leadership
            and the congressional defense committees with respect to the
            progress being made toward achieving a sustainable peace in
            Bosnia and Herzegovina and the progress being made toward a
            reduction and ultimate withdrawal of United States ground combat
            forces from Bosnia and Herzegovina.

        (c) Sense of Congress Concerning Defense Budget.--It is the sense of
    Congress that--
                (1) the President should include in the budget for the
            Department of Defense that the President submits to Congress
            under section 1105(a) of title 31, United States Code, for each
            fiscal year sufficient amounts to pay for any proposed
            continuation of the participation of United States forces in
            NATO operations in Bosnia and Herzegovina during that fiscal
            year; and

    [[Page 112 STAT. 2148]]

                (2) amounts included in the budget for the purpose stated in
            paragraph (1) should be over and above the defense discretionary
            estimates as identified in the Bipartisan Budget Agreement of
            May 16, 1997 and the fiscal year 1998 concurrent budget
            resolution and not be transferred from amounts in the budget of
            any other agency of the executive branch, but instead should be
            an overall increase in the budget for the Department of Defense
            and the discretionary spending limits in the Balanced Budget Act
            of 1997.

    SEC. 1203. PRESIDENTIAL REPORTS.

        (a) Required Reports.--The President shall ensure that the
    semiannual reports required by section 7(b) of the general provisions of
    chapter I of the 1998 Supplemental Appropriations and Rescissions Act
    (Public Law 105-174; 112 Stat. 64) are submitted to Congress in a timely
    manner as long as United States ground combat forces continue to
    participate in the Stabilization Force (SFOR). In addition, whenever the
    President submits to Congress a request for funds for continued
    operations of United States forces in Bosnia and Herzegovina, the
    President shall submit a supplemental report providing information to
    update Congress on developments since the last semiannual report.
        (b) Required Information.--In addition to the information required
    by the section referred to in subsection (a) to be included in a report
    under that section, each report under that section or under subsection
    (a) shall include the following:
                (1) The expected duration of the deployment of United States
            ground combat forces in Bosnia and Herzegovina in support of
            implementation of the benchmarks set forth in the President's
            report of March 3, 1998 (referred to in section 1201(5)) for
            achieving a sustainable peace process.
                (2) The percentage of those benchmarks that have been
            completed as of the date of the report, the percentage that are
            expected to be completed within the next reporting period, and
            the expected time for completion of the remaining tasks.
                (3) The status of the NATO force of gendarmes or
            paramilitary police, including the mission of the force, the
            composition of the force, and the extent, if any, to which
            members of the Armed Forces of the United States are
            participating (or are to participate) in the force.
                (4) The military and nonmilitary missions that the President
            has directed for United States forces in Bosnia and Herzegovina,
            including a specific discussion of--
                        (A) the mission of those forces, if any, in
                    connection with the pursuit and apprehension of war
                    criminals;
                        (B) the mission of those forces, if any, in
                    connection with civilian police functions;
                        (C) the mission of those forces, if any, in
                    connection with the resettlement of refugees; and
                        (D) the missions undertaken by those forces, if any,
                    in support of international and local civilian
                    authorities.
                (5) An assessment of the risk for the United States forces
            in Bosnia and Herzegovina, including, for each mission
            identified pursuant to paragraph (4), the assessment of the
            Chairman of the Joint Chiefs of Staff regarding the nature and
            level of risk of the mission for the safety and well-being of
            United States military personnel.

    [[Page 112 STAT. 2149]]

                (6) An assessment of the cost to the United States, by
            fiscal year, of carrying out the missions identified pursuant to
            paragraph (4) and a detailed projection of any additional
            funding that will be required by the Department of Defense to
            meet mission requirements for those operations for the remainder
            of the fiscal year.
                (7) A joint assessment by the Secretary of Defense and the
            Secretary of State of the status of planning for--
                        (A) the assumption of all remaining military
                    missions inside Bosnia and Herzegovina by European
                    military and paramilitary forces; and
                        (B) the establishment and support of a forward-based
                    United States rapid response force outside of Bosnia and
                    Herzegovina that would be capable of deploying rapidly
                    to defeat military threats to a European follow-on force
                    inside Bosnia and Herzegovina and of providing whatever
                    logistical, intelligence, and air support is needed to
                    ensure that a European follow-on force is fully capable
                    of accomplishing its missions under the Dayton Accords.

    SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN BOSNIA AND
                HERZEGOVINA.

         <<NOTE: Deadline.>> (a) Report on Effects on Capabilities of United
    States Military Forces.--Not later than December 15, 1998, the Secretary
    of Defense shall submit to the congressional defense committees a report
    on the effects of military operations in Bosnia and Herzegovina and the
    Balkans region on the capabilities of United States military forces. The
    report shall, in particular, describe the effects of those operations on
    the capability of United States military forces to conduct successfully
    two nearly simultaneous major theater wars as specified in current
    Defense Planning Guidance and in accordance with the deployment
    timelines called for in the war plans of the commanders of the unified
    combatant commands.

        (b) Additional Reports.--Whenever the number of United States ground
    combat forces in Bosnia and Herzegovina increases or decreases by 20
    percent or more compared to the number of such forces as of the most
    recent previous report under this section, the Secretary shall submit an
    additional report as specified in subsection (a). Any such additional
    report shall be submitted within 30 days of the date on which the
    requirement to submit the report becomes effective under the preceding
    sentence.
        (c) Matters To Be Included.--The Secretary shall include in each
    report under this section information with respect to the effects of
    military operations in Bosnia and Herzegovina and the Balkans region on
    the capabilities of United States military forces to conduct
    successfully two nearly simultaneous major theater wars as specified in
    current Defense Planning Guidance and in accordance with the deployment
    timelines called for in the war plans of the commanders of the unified
    combatant commands. Such information shall include information on the
    effects of those operations on anticipated deployment plans for major
    theater wars in Southwest Asia or on the Korean peninsula, including the
    following:
                (1) Deficiencies or delays in deployment of strategic lift,
            logistics support and infrastructure, ammunition (including
            precision guided munitions), support forces, intelligence
            assets,

    [[Page 112 STAT. 2150]]

            follow-on forces used for planned counteroffensives, and similar
            forces.
                (2) Additional planned reserve component mobilization,
            including specific units to be ordered to active duty and
            required dates for activation of presidential call-up authority.
                (3) Specific plans and timelines for redeployment of United
            States forces from Bosnia and Herzegovina, the Balkans region,
            or supporting forces in the region, to both the first and second
            major theater war.
                (4) Preventative actions or deployments involving United
            States forces in Bosnia and Herzegovina and the Balkans region
            that would be taken in the event of a single theater war to
            deter the outbreak of a second theater war.
                (5) Specific plans and timelines to replace forces deployed
            to Bosnia and Herzegovina, the Balkans region, or the
            surrounding region to maintain United States military presence.
                (6) An assessment, undertaken in consultation with the
            Chairman of the Joint Chiefs of Staff and the commanders of the
            unified combatant commands, of the level of increased risk to
            successful conduct of the major theater wars and the maintenance
            of security and stability in Bosnia and Herzegovina and the
            Balkans region, by the requirement to redeploy forces from
            Bosnia and the Balkans in the event of a major theater war.

    SEC. 1205. DEFINITIONS.

        As used in this subtitle:
                (1) Dayton peace accords.--The term ``Dayton Peace Accords''
            means the General Framework Agreement for Peace in Bosnia and
            Herzegovina, initialed by the parties in Dayton, Ohio, on
            November 21, 1995, and signed in Paris on December 14, 1995.
                (2) Stabilization force.--The term ``Stabilization Force''
            means the NATO-led force in Bosnia and Herzegovina and other
            countries in the region (referred to as ``SFOR''), authorized
            under United Nations Security Council Resolution 1088 (December
            12, 1996).
                (3) NATO.--The term ``NATO'' means the North Atlantic Treaty
            Organization.

             Subtitle B--Matters Relating to Contingency Operations

    SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND
                ONGOING OPERATIONS.

         <<NOTE: Deadline.>> (a) Report Required.--Not later than January
    31, 1999, the Secretary of Defense shall submit to the Committee on
    Armed Services of the Senate and the Committee on National Security of
    the House of Representatives a report on the involvement of the Armed
    Forces in major contingency operations and major ongoing operations
    since the end of the Persian Gulf War. The report shall include the
    following:
                (1) A discussion of the effects of the involvement of the
            Armed Forces in those operations on retention of personnel

    [[Page 112 STAT. 2151]]

            in the Armed Forces, shown in the aggregate and separately for
            officers and enlisted personnel.
                (2) The extent to which the use of combat support and combat
            service support personnel and equipment of the Armed Forces in
            those operations has resulted in shortages of Armed Forces
            personnel and equipment in other regions of the world.
                (3) The accounts from which funds have been drawn to pay for
            those operations and the specific programs for which those funds
            were available until diverted to pay for those operations.
                (4) For each such operation--
                        (A) a statement of the vital interests of the United
                    States that are involved in the operation or, if none,
                    the interests of the United States that are involved in
                    the operation and a characterization of those interests;
                        (B) a statement of what clear and distinct
                    objectives guide the activities of United States forces
                    in the operation; and
                        (C) a statement of what the President has identified
                    on the basis of those objectives as the date, or the set
                    of conditions, that defines the end of the operation.

        (b) Form of Report.--The report shall be submitted in unclassified
    form, but may also be submitted in a classified form if necessary.
        (c) Major Operation Defined.--For the purposes of this section, a
    contingency operation or an ongoing operation is a major contingency
    operation or a major ongoing operation, respectively, if the operation
    involves the deployment of more than 500 members of the Armed Forces.

    SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY OPERATION
                WITH REQUESTS FOR FUNDING FOR THE OPERATION.

        (a) Findings.--Congress makes the following findings:
                (1) On May 3, 1994, the President issued Presidential
            Decision Directive 25 declaring that American participation in
            United Nations and other peace operations would depend in part
            on whether the role of United States forces is tied to clear
            objectives and an endpoint for United States participation can
            be identified.
                (2) Between that date and mid-1998, the President and other
            executive branch officials have obligated or requested
            appropriations of approximately $9,400,000,000 for military-
            related operations throughout Bosnia and Herzegovina without
            providing to Congress, in conjunction with the budget submission
            for any fiscal year, a strategic plan for such operations under
            the criteria set forth in that Presidential Decision Directive.
                (3) Between November 27, 1995, and mid-1998 the President
            has established three deadlines, since elapsed, for the
            termination of United States military-related operations
            throughout Bosnia and Herzegovina.
                (4) On December 17, 1997, the President announced that
            United States ground combat forces would remain in Bosnia and
            Herzegovina for an unknown period of time.
                (5) Approximately 47,880 United States military personnel
            (excluding personnel serving in units assigned to the Republic

    [[Page 112 STAT. 2152]]

            of Korea) have participated in 14 international contingency
            operations between fiscal years 1991 and 1998.
                (6) The 1998 posture statements of the Navy and Air Force
            included declarations that the pace of military operations over
            fiscal year 1997 adversely affected the readiness of non-
            deployed forces, personnel retention rates, and spare parts
            inventories of the Navy and Air Force.

        (b) Information To Be Reported With Funding Requests.--Section 113
    of title 10, United States Code, is amended by adding after subsection
    (l), as added by section 915, the following new subsection:
        ``(m) Information To Accompany Funding Request for Contingency
    Operation.--Whenever the President submits to Congress a request for
    appropriations for costs associated with a contingency operation that
    involves, or likely will involve, the deployment of more than 500
    members of the armed forces, the Secretary of Defense shall submit to
    Congress a report on the objectives of the operation. The report shall
    include a discussion of the following:
                ``(1) What clear and distinct objectives guide the
            activities of United States forces in the operation.
                ``(2) What the President has identified on the basis of
            those objectives as the date, or the set of conditions, that
            defines the endpoint of the operation.''.

                 Subtitle C--Matters Relating to NATO and Europe

    SEC. 1221. <<NOTE: 22 USC 1928 note.>> LIMITATION ON UNITED STATES SHARE
                OF COSTS OF NATO EXPANSION.

        (a) Limitation.--The United States share of defined NATO expansion
    costs may not exceed the lesser of--
                (1) the amount equal to 25 percent of those costs; or
                (2) $2,000,000,000.

        (b) Defined NATO Expansion Costs.--For purposes of subsection (a),
    the term ``defined NATO expansion costs'' means the commonly funded
    costs of the North Atlantic Treaty Organization (NATO) during fiscal
    years 1999 through 2011 for enlargement of NATO due to the admission to
    NATO of Poland, Hungary, and the Czech Republic.

    SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO ALLIANCE.

        (a) Report.--The Secretary of Defense shall prepare a report, in
    both classified and unclassified form, on the planned future military
    capabilities of the North Atlantic Treaty Organization (NATO) with the
    anticipated accession of Poland, the Czech Republic, and Hungary to the
    NATO alliance. The report shall set forth the following:
                (1) An assessment of the tactical, operational, and
            strategic military requirements, including interoperability,
            reinforcement, and force modernization issues, as well as
            strategic and territorial issues, that are raised by the
            inclusion of Poland, the Czech Republic, and Hungary in the NATO
            alliance.

    [[Page 112 STAT. 2153]]

                (2) The minimum military requirements to be satisfied by
            those countries before accession to the NATO alliance in April
            1999.
                (3) The improvements to common alliance military assets that
            are necessary as a result of expanding the NATO alliance to
            include those nations.
                (4) The improvements to national capabilities of current
            NATO members that would be necessitated by the inclusion of
            those nations in the alliance.
                (5) The necessary improvements to national capabilities of
            the military forces of those new member nations.
                (6) Any additional necessary improvements to common alliance
            military assets of the military forces of those new members for
            which funds are not planned to be included in the NATO budget.
                (7) The additional requirements, related to NATO expansion,
            that the United States would agree to assist each new member
            nation to meet on a bilateral basis.

        (b) Matters To Be Included.--The report shall include the following:
                (1) An assessment of the tactical and operational
            capabilities of the military forces of Poland, the Czech
            Republic, and Hungary.
                (2) An assessment of the ability of each such new member
            nation to meet the minimum military requirements upon accession
            to the NATO alliance in April 1999, and the ability of that
            nation to provide logistical, command and control, and other
            vital infrastructure required for alliance defense (as specified
            in Article V of the NATO Charter), including a description in
            general terms of alliance plans for reinforcing each new NATO
            member nation during a crisis or war and detailing means for
            deploying both United States and other NATO forces from current
            member states and from the continental United States or other
            United States bases worldwide and, in particular, describing
            plans for ground reinforcement of Hungary.
                (3) An assessment of the ability of the current and new
            alliance members to deploy and sustain combat forces in alliance
            defense missions conducted in the territory of any of the new
            member nations, as specified in Article V of the NATO Charter.
                (4) A description of projected defense programs through 2009
            (shown on an annual basis and cumulatively) of each current and
            new alliance member nation--
                        (A) including planned investments in capabilities
                    pursuant to Article V to ensure that--
                              (i) the nation's military force structure,
                          defense planning, command structures, and force
                          goals promote NATO's capacity to project power
                          when the security of a NATO member is threatened;
                          and
                              (ii) NATO members possess national military
                          capabilities to rapidly deploy forces over long
                          distances, sustain operations for extended
                          periods, and operate jointly with the United
                          States in high intensity conflicts as well as
                          potential alliance contingency operations;
                        (B) showing both planned national efforts as well as
                    planned alliance common efforts; and

    [[Page 112 STAT. 2154]]

                        (C) describing any deficiencies in investments by
                    current or new alliance member nations.
                (5) A detailed comparison and description of the differences
            in scope, methodology, and assessments of common alliance or
            national responsibilities, or any other factor related to
            alliance capabilities between (A) the report on alliance
            expansion costs prepared by the Department of Defense (in the
            report submitted to Congress in February 1998 entitled ``Report
            to the Congress on the Military Requirements and Costs of NATO
            Enlargement''), and (B) the report on alliance expansion costs
            prepared by NATO collectively and referred to as the ``NATO
            estimate'', issued at Brussels in November 1997.
                (6) Any other factor that, in the judgment of the Secretary
            of Defense, bears upon the strategic, operational, or tactical
            military capabilities of an expanded NATO alliance.

         <<NOTE: Deadline.>> (c) Submission of Report.--The report shall be
    submitted to Congress not later than March 15, 1999.

    SEC. 1223. <<NOTE: 22 USC 1928 note.>> REPORTS ON THE DEVELOPMENT OF THE
                EUROPEAN SECURITY AND DEFENSE IDENTITY.

        (a) Requirement for Reports.--The Secretary of Defense shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives in accordance with
    this section reports on the development of the European Security and
    Defense Identity (ESDI) within the NATO Alliance that would enable the
    Western European Union (WEU), with the consent of the NATO Alliance, to
    assume the political control and strategic direction of NATO assets and
    capabilities made available by the Alliance.
        (b) Reports To Be Submitted.--The reports required to be submitted
    under subsection (a) are as follows:
                (1) An initial report, submitted not later than December 15,
            1998, that contains a discussion of the actions taken, and the
            plans for future actions, to build the European Security and
            Defense Identity, together with the matters required under
            subsection (c).
                (2) A semiannual report on the progress made toward
            establishing the European Security and Defense Identity,
            submitted not later than June 15 and December 15 of each year
            after 1998.

        (c) Content of Reports.--The Secretary shall include in each report
    under this section the following:
                (1) A discussion of the arrangements between NATO and the
            Western European Union for the release, transfer, monitoring,
            return, and recall of NATO assets and capabilities.
                (2) A discussion of the development of such planning and
            other capabilities by the Western European Union that are
            necessary to provide political control and strategic direction
            of NATO assets and capabilities.
                (3) A discussion of the development of terms of reference
            for the Deputy Supreme Allied Commander, Europe, with respect to
            the European Security and Defense Identity.
                (4) A discussion of the arrangements for the assignment or
            appointment of NATO officers to serve in two positions
            concurrently (commonly referred to as ``dual-hatting'').

    [[Page 112 STAT. 2155]]

                (5) A discussion of the development of the Combined Joint
            Task Force (CJTF) concept, including lessons-learned from the
            NATO-led Stabilization Force in Bosnia.
                (6) Identification within the NATO Alliance of the types of
            separable but not separate capabilities, assets, and support
            assets for Western European Union-led operations.
                (7) Identification of separable but not separate
            headquarters, headquarters elements, and command positions for
            command and conduct of Western European Union-led operations.
                (8) The conduct by NATO, at the request of and in
            coordination with the Western European Union, of military
            planning and exercises for illustrative missions.
                (9) A discussion of the arrangements between NATO and the
            Western European Union for the sharing of information, including
            intelligence.
                (10) Such other information as the Secretary considers
            useful for a complete understanding of the establishment of the
            European Security and Defense Identity within the NATO Alliance.

        (d) Termination of Reporting Requirement.--The requirement to submit
    reports under subsection (b)(2) terminates upon the submission by the
    Secretary under that subsection of a report in which the Secretary
    states that the European Security and Defense Identity has been fully
    established.

                            Subtitle D--Other Matters

    SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES FOR CERTAIN
                UNITED NATIONS PURPOSES.

        (a) Limitation on Participation in United Nations Rapidly Deployable
    Mission Headquarters.--If members of the Armed Forces are assigned
    during fiscal year 1999 to the United Nations Rapidly Deployable Mission
    Headquarters, the number of members so assigned may not exceed eight at
    any time during that year.
         <<NOTE: 10 USC 405 note.>> (b) Prohibition.--No funds available to
    the Department of Defense may be used--10 USC 405 note.
                (1) for a monetary contribution to the United Nations for
            the establishment of a standing international force under the
            United Nations; or
                (2) to assign or detail any member of the Armed Forces to
            duty with a United Nations Stand By Force.

    SEC. 1232. <<NOTE: 10 USC 111 note.>> PROHIBITION ON RESTRICTION OF
                ARMED FORCES UNDER KYOTO PROTOCOL TO THE UNITED NATIONS
                FRAMEWORK CONVENTION ON CLIMATE CHANGE.

        (a) In General.--Notwithstanding any other provision of law, no
    provision of the Kyoto Protocol to the United Nations Framework
    Convention on Climate Change, or any regulation issued pursuant to such
    protocol, shall restrict the training or operations of the United States
    Armed Forces or limit the military equipment procured by the United
    States Armed Forces.
        (b) Waiver.--A provision of law may not be construed as modifying or
    superseding the provisions of subsection (a) unless that provision of
    law--
                (1) specifically refers to this section; and

    [[Page 112 STAT. 2156]]

                (2) specifically states that such provision of law modifies
            or supersedes the provisions of this section.

        (c) Matters Not Affected.--Nothing in this section shall be
    construed to preclude the Department of Defense from implementing any
    measure to achieve efficiencies or for any other reason independent of
    the Kyoto Protocol.

    SEC. 1233. DEFENSE BURDENSHARING.

         <<NOTE: Effective date.>> (a) Revised Goals for Efforts To Increase
    Allied Burdensharing.--Effective October 1, 1998, subsection (a) of
    section 1221 of the National Defense Authorization Act for Fiscal Year
    1998 (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 1928 note) is
    amended--
                (1) in paragraph (2), by striking out ``September 30, 1998''
            and inserting in lieu thereof ``September 30, 1999'';
                (2) in paragraph (3)--
                        (A) by striking out ``economic'' and all that
                    follows through ``rights'' and inserting in lieu thereof
                    ``governmental accountability and transparency, economic
                    stabilization and development, defense economic
                    conversion, respect for the rule of law and
                    internationally recognized human rights, and
                    humanitarian relief efforts)''; and
                        (B) by striking out ``at least to a level
                    commensurate to that of the United States by September
                    30, 1998'' and inserting in lieu thereof ``to provide
                    such foreign assistance at an annual rate that is not
                    less than one percent of its gross domestic product, by
                    September 30, 1999''; and
                (3) in paragraph (4)--
                        (A) by striking out ``amount of'';
                        (B) by striking out ``, or would be prepared to
                    contribute,'' and inserting in lieu thereof ``or has
                    pledged to contribute''; and
                        (C) by inserting before the period at the end the
                    following: ``by 10 percent by September 30, 1999''.

        (b) Revised Requirement for Report on Progress in Increasing Allied
    Burdensharing.--Subsection (c) of such section is amended--
                (1) by striking out ``March 1, 1998'' in the matter
            preceding paragraph (1) and inserting in lieu thereof ``March 1,
            1999''; and
                (2) in paragraph (3), by striking out ``March 1, 1996'' and
            all that follows through the semicolon and inserting in lieu
            thereof ``October 1, 1996, and ending on September 30, 1997, and
            during the period beginning on October 1, 1997, and ending on
            September 30, 1998, or, in the case of any nation for which the
            data for such periods is inadequate, the difference between the
            amounts for the latest periods for which adequate data is
            available;''.

        (c) Extension of Deadline for Report Regarding National Security
    Bases for Forward Deployment and Burdensharing Relationships.--
    Subsection (d)(2) of such section is amended by striking out ``March 1,
    1998'' and inserting in lieu thereof ``March 1, 1999''.

    SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA HELICOPTERS TO
                FOREIGN COUNTRIES.

        (a) In General.--Chapter 153 of title 10, United States Code, is
    amended by adding at the end the following new section:

    [[Page 112 STAT. 2157]]

    ``Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements
                            for transfer to foreign countries

        ``(a) Requirements.--(1) Before an excess UH-1 Huey helicopter or
    AH-1 Cobra helicopter is transferred on a grant or sales basis to a
    foreign country for the purpose of flight operations by that country,
    the Secretary of Defense shall make all reasonable efforts to ensure
    that the helicopter receives, to the extent necessary, maintenance and
    repair equivalent to the depot-level maintenance and repair (as defined
    in section 2460 of this title) that the helicopter would need were the
    helicopter to remain in operational use with the armed forces. Any such
    maintenance and repair work shall be performed at no cost to the
    Department of Defense.
        ``(2) The Secretary shall make all reasonable efforts to ensure that
    maintenance and repair work described in paragraph (1) is performed in
    the United States.
        ``(b) Exception.--Subsection (a) does not apply with respect to
    salvage helicopters provided to the foreign country solely as a source
    for spare parts.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for
               transfer to foreign countries.''.

    SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

        (a) Transfers by Grant.--The Secretary of the Navy is authorized to
    transfer vessels to foreign countries on a grant basis under section 516
    of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
                (1) To the Government of Argentina, the NEWPORT class tank
            landing ship NEWPORT (LST 1179).
                (2) To the Government of Greece--
                        (A) the KNOX class frigate HEPBURN (FF 1055); and
                        (B) the ADAMS class guided missile destroyers
                    STRAUSS (DDG 16), SEMMS (DDG 18), and WADDELL (DDG 24).
                (3) To the Government of Portugal, the STALWART class ocean
            surveillance ship ASSURANCE (T-AGOS 5).
                (4) To the Government of Turkey, the KNOX class frigates
            PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).

        (b) Transfers by Sale.--The Secretary of the Navy is authorized to
    transfer vessels to foreign countries on a sales basis under section 21
    of the Arms Export Control Act (22 U.S.C. 2761) as follows:
                (1) To the Government of Brazil, the NEWPORT class tank
            landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).
                (2) To the Government of Chile--
                        (A) the NEWPORT class tank landing ship SAN
                    BERNARDINO (LST 1189); and
                        (B) the auxiliary repair dry dock WATERFORD (ARD 5).
                (3) To the Government of Greece--

    [[Page 112 STAT. 2158]]

                        (A) the OAK RIDGE class medium dry dock ALAMAGORDO
                    (ARDM 2); and
                        (B) the KNOX class frigates VREELAND (FF 1068) and
                    TRIPPE (FF 1075).
                (4) To the Government of Mexico--
                        (A) the auxiliary repair dock SAN ONOFRE (ARD 30);
                    and
                        (B) the KNOX class frigate PHARRIS (FF 1094).
                (5) To the Government of the Philippines, the STALWART class
            ocean surveillance ship TRIUMPH (T-AGOS 4).
                (6) To the Government of Spain, the NEWPORT class tank
            landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY
            (LST 1197).
                (7) To the Taipai Economic and Cultural Representative
            Office in the United States (the Taiwan instrumentality that is
            designated pursuant to section 10(a) of the Taiwan Relations
            Act)--
                        (A) the KNOX class frigates PEARY (FF 1073), JOSEPH
                    HEWES (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK
                    (FF 1987), and BARBEY (FF 1088);
                        (B) the NEWPORT class tank landing ships MANITOWOC
                    (LST 1180) and SUMTER (LST 1181);
                        (C) the floating dry dock COMPETENT (AFDM 6); and
                        (D) the ANCHORAGE class dock landing ship PENSACOLA
                    (LSD 38).
                (8) To the Government of Turkey--
                        (A) the OLIVER HAZARD PERRY class guided missile
                    frigates MAHLON S. TISDALE (FFG 27), REID (FFG 30), and
                    DUNCAN (FFG 10); and
                        (B) the KNOX class frigates REASONER (FF 1063),
                    FANNING (FF 1076), BOWEN (FF 1079), MCCANDLESS (FF
                    1084), DONALD BEARY (FF 1085), AINSWORTH (FF 1090),
                    THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).
                (9) To the Government of Venezuela, the medium auxiliary
            floating dry dock bearing hull number AFDM 2.

        (c) Transfers on a Combined Lease-Sale Basis.--The Secretary of the
    Navy is authorized to transfer vessels to foreign countries on a
    combined lease-sale basis under sections 61 and 21 of the Arms Export
    Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection (d)
    as follows:
                (1) To the Government of Brazil, the CIMARRON class oiler
            MERRIMACK (AO 179).
                (2) To the Government of Greece, the KIDD class guided
            missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT
            (DDG 995), and CHANDLER (DDG 996).

        (d) Conditions Relating To Combined Lease-Sale Transfers.--A
    transfer of a vessel on a combined lease-sale basis authorized by
    subsection (c) shall be made in accordance with the following
    requirements:
                (1) The Secretary may initially transfer the vessel by
            lease, with lease payments suspended for the term of the lease,
            if the country entering into the lease for the vessel
            simultaneously enters into a foreign military sales agreement
            for the transfer of title to the vessel.

    [[Page 112 STAT. 2159]]

                (2) The Secretary may not deliver to the purchasing country
            title to the vessel until the purchase price of the vessel under
            such a foreign military sales agreement is paid in full.
                (3) Upon payment of the purchase price in full under such a
            sales agreement and delivery of title to the recipient country,
            the Secretary shall terminate the lease.
                (4) If the purchasing country fails to make full payment of
            the purchase price in accordance with the sales agreement by the
            date required under the sales agreement--
                        (A) the sales agreement shall be immediately
                    terminated;
                        (B) the suspension of lease payments under the lease
                    shall be vacated; and
                        (C) the United States shall be entitled to retain
                    all funds received on or before the date of the
                    termination under the sales agreement, up to the amount
                    of the lease payments due and payable under the lease
                    and all other costs required by the lease to be paid to
                    that date.
                (5) If a sales agreement is terminated pursuant to paragraph
            (4), the United States shall not be required to pay any interest
            to the recipient country on any amount paid to the United States
            by the recipient country under the sales agreement and not
            retained by the United States under the lease.

        (e) Requirement for Provision in Advance in an Appropriations Act.--
    Authority to transfer vessels on a sale basis under subsection (b) or a
    combined lease-sale basis under subsection (c) is effective only to the
    extent that authority to effectuate such transfers, together with
    appropriations to cover the associated cost (as defined in section 502
    of the Congressional Budget of 1974 (2 U.S.C. 661a)), are provided in
    advance in an appropriations Act.
        (f ) Authorization of Appropriations for Certain Costs of
    Transfers.--There is established in the Treasury of the United States a
    special account to be known as the Defense Vessels Transfer Program
    Account. There is hereby authorized to be appropriated into that account
    such sums as may be necessary for the costs (as defined in section 502
    of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the lease-
    sale transfers authorized by subsection (c). Funds in that account are
    available only for the purpose of covering those costs.
        (g) Notification of Congress.--Not later than 30 days after the date
    of the enactment of this Act, the Secretary of the Navy shall submit to
    Congress, for each naval vessel that is to be transferred under this
    section before January 1, 1999, the notifications required under section
    516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) and section
    525 of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
        (h) Grants not Counted in Annual Total of Transferred Excess Defense
    Articles.--The value of a vessel transferred to another country on a
    grant basis under section 516 of the Foreign Assistance Act of 1961 (22
    U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not
    be counted for the purposes of subsection (g) of that section in the
    aggregate value of excess defense articles transferred to countries
    under that section in any fiscal year.

    [[Page 112 STAT. 2160]]

        (i) Costs of Transfers.--Any expense incurred by the United States
    in connection with a transfer authorized by this section shall be
    charged to the recipient (notwithstanding section 516(e)(1) of the
    Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a
    transfer authorized to be made on a grant basis under subsection (a)).
        ( j) Repair and Refurbishment in United States Shipyards.--To the
    maximum extent practicable, the Secretary of the Navy shall require, as
    a condition of the transfer of a vessel under this section, that the
    country to which the vessel is transferred have such repair or
    refurbishment of the vessel as is needed, before the vessel joins the
    naval forces of that country, performed at a shipyard located in the
    United States, including a United States Navy shipyard.
        (k) Expiration of Authority.--The authority to transfer a vessel
    under this section shall expire at the end of the 2-year period
    beginning on the date of the enactment of this Act.

    SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

        Section 580 of the Foreign Operations Appropriations Act, 1996
    (Public Law 104-107; 110 Stat. 751), is repealed.

    SEC. 1237. <<NOTE: 50 USC 1701 note.>> APPLICATION OF AUTHORITIES UNDER
                THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT TO COMMUNIST
                CHINESE MILITARY COMPANIES.

        (a) Presidential Authority.--
                (1) In general.--The President may exercise IEEPA
            authorities (other than authorities relating to importation)
            without regard to section 202 of the International Emergency
            Economic Powers Act (50 U.S.C. 1701) in the case of any
            commercial activity in the United States by a person that is on
            the list published under subsection (b).
                (2) Penalties.--The penalties set forth in section 206 of
            the International Emergency Economic Powers Act (50 U.S.C. 1705)
            apply to violations of any license, order, or regulation issued
            under paragraph (1).
                (3) Ieepa authorities.--For purposes of paragraph (1), the
            term ``IEEPA authorities'' means the authorities set forth in
            section 203(a) of the International Emergency Economic Powers
            Act (50 U.S.C. 1702(a)).

        (b) Determination and Publication of Communist Chinese Military
    Companies Operating in United States.--
                 <<NOTE: Federal Register, publication.>> (1) Initial
            determination and publication.--Not later than 90 days after the
            date of the enactment of this Act, the Secretary of Defense
            shall make a determination of those persons operating directly
            or indirectly in the United States or any of its territories and
            possessions that are Communist Chinese military companies and
            shall publish a list of those persons in the Federal Register.
                (2) Revisions to list.--The Secretary of Defense shall make
            additions or deletions to the list published under paragraph (1)
            on an ongoing basis based on the latest information available.
                (3) Consultation.--The Secretary of Defense shall consult
            with the following officers in carrying out paragraphs (1) and
            (2):
                        (A) The Attorney General.
                        (B) The Director of Central Intelligence.

    [[Page 112 STAT. 2161]]

                        (C) The Director of the Federal Bureau of
                    Investigation.
                (4) Communist chinese military company.--For purposes of
            making the determination required by paragraph (1) and of
            carrying out paragraph (2), the term ``Communist Chinese
            military company'' means--
                        (A) any person identified in the Defense
                    Intelligence Agency publication numbered VP-1920-271-90,
                    dated September 1990, or PC-1921-57-95, dated October
                    1995, and any update of those publications for the
                    purposes of this section; and
                        (B) any other person that--
                              (i) is owned or controlled by the People's
                          Liberation Army; and
                              (ii) is engaged in providing commercial
                          services, manufacturing, producing, or exporting.

        (c) People's Liberation Army.--For purposes of this section, the
    term ``People's Liberation Army'' means the land, naval, and air
    military services, the police, and the intelligence services of the
    Communist Government of the People's Republic of China, and any member
    of any such service or of such police.

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

    Sec. 1301. Specification of Cooperative Threat Reduction programs and
               funds.
    Sec. 1302. Funding allocations.
    Sec. 1303. Prohibition on use of funds for specified purposes.
    Sec. 1304. Limitation on use of funds for chemical weapons destruction
               activities in Russia.
    Sec. 1305. Limitation on use of funds for biological weapons
               proliferation prevention activities in Russia.
    Sec. 1306. Cooperative counter-proliferation program.
    Sec. 1307. Requirement to submit summary of amounts requested by project

               category.
    Sec. 1308. Report on biological weapons programs in Russia.
    Sec. 1309. Report on individuals with expertise in former Soviet weapons
               of mass destruction programs.

    SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
                FUNDS.

         <<NOTE: 22 USC 5952 note.>> (a) Specification of CTR Programs.--(1)
    For purposes of section 301 and other provisions of this Act,
    Cooperative Threat Reduction programs are the programs specified in
    section 1501(b) of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note) (as
    amended by paragraph (2)).

        (2) Section 1501(b)(3) of such Act <<NOTE: 50 USC 2362 note.>> is
    amended by inserting ``materials,'' after ``components,''.

        (b) Fiscal Year 1999 Cooperative Threat Reduction Funds Defined.--As
    used in this title, the term ``fiscal year 1999 Cooperative Threat
    Reduction funds'' means the funds appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs.
        (c) Availability of Funds.--Funds appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs shall be available for obligation for three fiscal
    years.

    [[Page 112 STAT. 2162]]

    SEC. 1302. FUNDING ALLOCATIONS.

        (a) Funding for Specific Purposes.--Of the amounts authorized to be
    appropriated to the Department of Defense for fiscal year 1999 in
    section 301(23), $440,400,000 shall be available to carry out
    Cooperative Threat Reduction programs, of which not more than the
    following amounts may be obligated for the purposes specified:
                (1) For strategic offensive arms elimination in Russia,
            $142,400,000.
                (2) For strategic nuclear arms elimination in Ukraine,
            $47,500,000.
                (3) For activities to support warhead dismantlement
            processing in Russia, $9,400,000.
                (4) For activities associated with chemical weapons
            destruction in Russia, $88,400,000.
                (5) For weapons transportation security in Russia,
            $10,300,000.
                (6) For planning, design, and construction of a storage
            facility for Russian fissile material, $60,900,000.
                (7) For weapons storage security in Russia, $41,700,000.
                (8) For development of a cooperative program with the
            Government of Russia to eliminate the production of weapons
            grade plutonium at Russian reactors, $29,800,000.
                (9) For biological weapons proliferation prevention
            activities in Russia, $2,000,000.
                (10) For activities designated as Other Assessments/
            Administrative Support, $8,000,000.

        (b) Limited Authority To Vary Individual Amounts.--(1) If the
    Secretary of Defense determines that it is necessary to do so in the
    national interest, the Secretary may, subject to paragraphs (2) and (3),
    obligate amounts for the purposes stated in any of the paragraphs of
    subsection (a) in excess of the amount specified for those purposes in
    that paragraph. However, the total amount obligated for the purposes
    stated in the paragraphs in subsection (a) may not by reason of the use
    of the authority provided in the preceding sentence exceed the sum of
    the amounts specified in those paragraphs.
        (2) An obligation for the purposes stated in any of the paragraphs
    in subsection (a) in excess of the amount specified in that paragraph
    may be made using the authority provided in paragraph (1) only after--
                (A) the Secretary submits to Congress notification of the
            intent to do so together with a complete discussion of the
            justification for doing so; and
                (B) 15 days have elapsed following the date of the
            notification.

        (3) The Secretary may not, under the authority provided in paragraph
    (1), obligate amounts appropriated for the purposes stated in any of
    paragraphs (3) through (10) of subsection (a) in excess of 115 percent
    of the amount stated in those paragraphs.

    SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

        (a) In General.--No fiscal year 1999 Cooperative Threat Reduction
    funds, and no funds appropriated for Cooperative Threat Reduction
    programs for any prior fiscal year and remaining available for
    obligation, may be obligated or expended for any of the following
    purposes:

    [[Page 112 STAT. 2163]]

                (1) Conducting with Russia any peacekeeping exercise or
            other peacekeeping-related activity.
                (2) Provision of housing.
                (3) Provision of assistance to promote environmental
            restoration.
                (4) Provision of assistance to promote job retraining.

        (b) Limitation With Respect to Defense Conversion Assistance.--None
    of the funds appropriated pursuant to this Act may be obligated or
    expended for the provision of assistance to Russia or any other state of
    the former Soviet Union to promote defense conversion.

    SEC. 1304. <<NOTE: 22 USC 5952 note.>> LIMITATION ON USE OF FUNDS FOR
                CHEMICAL WEAPONS DESTRUCTION ACTIVITIES IN RUSSIA.

        (a) Limitation.--Subject to the limitation in section 1405(b) of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
    85; 111 Stat. 1961), no funds authorized to be appropriated for
    Cooperative Threat Reduction programs under this Act or any other Act
    may be obligated or expended for chemical weapons destruction activities
    in Russia (including activities for the planning, design, or
    construction of a chemical weapons destruction facility or for the
    dismantlement of an existing chemical weapons production facility) until
    the President submits to Congress a written certification described in
    subsection (b).
        (b) Presidential Certification.--A certification under this
    subsection is either of the following certifications by the President:
                (1) A certification that--
                        (A) Russia is making reasonable progress toward the
                    implementation of the Bilateral Destruction Agreement;
                        (B) the United States and Russia have made
                    substantial progress toward the resolution, to the
                    satisfaction of the United States, of outstanding
                    compliance issues under the Wyoming Memorandum of
                    Understanding and the Bilateral Destruction Agreement;
                    and
                        (C) Russia has fully and accurately declared all
                    information regarding its unitary and binary chemical
                    weapons, chemical weapons facilities, and other
                    facilities associated with chemical weapons.
                (2) A certification that the national security interests of
            the United States could be undermined by a policy of the United
            States not to carry out chemical weapons destruction activities
            under Cooperative Threat Reduction programs for which funds are
            authorized to be appropriated under this Act or any other Act
            for fiscal year 1999.

        (c) Definitions.--In this section:
                (1) The term ``Bilateral Destruction Agreement'' means the
            Agreement Between the United States of America and the Union of
            Soviet Socialist Republics on Destruction and Non-production of
            Chemical Weapons and on Measures to Facilitate the Multilateral
            Convention on Banning Chemical Weapons signed on June 1, 1990.
                (2) The term ``Wyoming Memorandum of Understanding'' means
            the Memorandum of Understanding Between the Government of the
            United States of America and the Government of the Union of
            Soviet Socialist Republics Regarding a Bilateral Verification
            Experiment and Data Exchange Related

    [[Page 112 STAT. 2164]]

            to Prohibition on Chemical Weapons, signed at Jackson Hole,
            Wyoming, on September 23, 1989.

    SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS
                PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

        No fiscal year 1999 Cooperative Threat Reduction funds may be
    obligated or expended for biological weapons proliferation prevention
    activities in Russia until 15 days after the date on which the Secretary
    submits to the congressional defense committees a report on--
                (1) whether Cooperative Threat Reduction funds provided for
            cooperative research activities at biological research
            institutes in Russia have been used--
                        (A) to support activities to develop new strains of
                    anthrax; or
                        (B) for any purpose inconsistent with the objectives
                    of providing such funds; and
                (2) the new strains of anthrax alleged to have been
            developed at a biological research institute in Russia and any
            efforts by the United States to examine such strains.

    SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

        (a) In General.--Of the amount authorized to be appropriated in
    section 1302 (other than the amounts authorized to be appropriated in
    subsections (a)(1) and (a)(2) of that section) and subject to the
    limitations in that section and subsection (b), the Secretary of Defense
    may provide a country of the former Soviet Union with emergency
    assistance for removing or obtaining from that country--
                (1) weapons of mass destruction; or
                (2) materials, equipment, or technology related to the
            development or delivery of weapons of mass destruction.

        (b) Certification Required.--(1) The Secretary may not provide
    assistance under subsection (a) until 15 days after the date that the
    Secretary submits to the congressional defense committees a
    certification in writing that the weapons, materials, equipment, or
    technology described in that subsection meet each of the following
    requirements:
                (A) The weapons, materials, equipment, or technology are at
            risk of being sold or otherwise transferred to a restricted
            foreign state or entity.
                (B) The transfer of the weapons, materials, equipment, or
            technology would pose a significant near-term threat to the
            national security interests of the United States or would
            significantly advance a foreign country's weapon program that
            threatens the national security interests of the United States.
                (C) Other options for securing or otherwise preventing the
            transfer of the weapons, materials, equipment, or technology
            have been considered and rejected as ineffective or inadequate.

        (2) The 15-day notice requirement in paragraph (1) may be waived if
    the Secretary determines that compliance with the requirement would
    compromise the national security interests of the United States. In such
    case, the Secretary shall promptly notify the congressional defense
    committees of the circumstances regarding such determination in advance
    of providing assistance under subsection (a) and shall submit the
    certification required not later than 30 days after providing such
    assistance.

    [[Page 112 STAT. 2165]]

        (c) Content of Certifications.--Each certification required under
    subsection (b) shall contain information on the following with respect
    to the assistance being provided:
                (1) The specific assistance provided and the purposes for
            which the assistance is being provided.
                (2) The sources of funds for the assistance.
                (3) Whether any assistance is being provided by any other
            Federal department or agency.
                (4) The options considered and rejected for preventing the
            transfer of the weapons, materials, equipment, or technology, as
            described in subsection (b)(1)(C).
                (5) Whether funding was requested by the Secretary from
            other Federal departments or agencies.
                (6) Any additional information that the Secretary determines
            is relevant to the assistance being provided.

        (d) Additional Sources of Funding.--The Secretary may request
    assistance and accept funds from other Federal departments or agencies
    in carrying out this section.
        (e) Definitions.--In this section:
                (1) The term ``restricted foreign state or entity'', with
            respect to weapons, materials, equipment, or technology covered
            by a certification or notification of the Secretary of Defense
            under subsection (b), means--
                        (A) any foreign country the government of which has
                    repeatedly provided support for acts of international
                    terrorism, as determined by the Secretary of State under
                    section 620A of the Foreign Assistance Act of 1961 (22
                    U.S.C. 2371); or
                        (B) any foreign state or entity that the Secretary
                    of Defense determines would constitute a military threat
                    to the United States, its allies, or interests, if that
                    foreign state or entity were to possess the weapons,
                    materials, equipment, or technology.
                (2) The term ``weapons of mass destruction'' has the meaning
            given that term in section 1403(1) of the Defense Against
            Weapons of Mass Destruction Act of 1996 (title XIV of Public Law
            104-201; 50 U.S.C. 2302(1)).

    SEC. 1307. <<NOTE: 22 USC 5952 note.>> REQUIREMENT TO SUBMIT SUMMARY OF
                AMOUNTS REQUESTED BY PROJECT CATEGORY.

        (a) Summary Required.--The Secretary of Defense shall submit to
    Congress as part of the Secretary's annual budget request to Congress--
                (1) a descriptive summary, with respect to the
            appropriations requested for Cooperative Threat Reduction
            programs for the fiscal year after the fiscal year in which the
            summary is submitted, of the amounts requested for each project
            category under each Cooperative Threat Reduction program
            element; and
                (2) a descriptive summary, with respect to appropriations
            for Cooperative Threat Reduction programs for the fiscal year in
            which the list is submitted and the previous fiscal year, of the
            amounts obligated or expended, or planned to be obligated or
            expended, for each project category under each Cooperative
            Threat Reduction program element.

        (b) Description of Purpose and Intent.--The descriptive summary
    required under subsection (a) shall include a narrative

    [[Page 112 STAT. 2166]]

    description of each program and project category under each Cooperative
    Threat Reduction program element that explains the purpose and intent of
    the funds requested.

    SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

        (a) Report.--Not later than March 1, 1999, the Secretary of Defense
    shall submit to the congressional defense committees a report, in
    classified and unclassified forms, containing--
                (1) an assessment of the extent of compliance by Russia with
            international agreements relating to the control of biological
            weapons; and
                (2) a detailed evaluation of the potential political and
            military costs and benefits of collaborative biological pathogen
            research efforts by the United States and Russia.

        (b) Content of Report.--The report required under subsection (a)
    shall include the following:
                (1) An evaluation of the extent of the control and oversight
            by the Government of Russia over the military and civilian-
            military biological warfare programs formerly controlled or
            overseen by states of the former Soviet Union.
                (2) The extent and scope of continued biological warfare
            research, development, testing, and production in Russia,
            including the sites where such activity is occurring and the
            types of activity being conducted.
                (3) An assessment of compliance by Russia with the terms of
            the Biological Weapons Convention.
                (4) An identification and assessment of the measures taken
            by Russia to comply with the obligations assumed under the Joint
            Statement on Biological Weapons, agreed to by the United States,
            the United Kingdom, and Russia on September 14, 1992.
                (5) A description of the extent to which Russia has
            permitted individuals from the United States or other countries
            to visit military and nonmilitary biological research,
            development, testing, and production sites in order to resolve
            ambiguities regarding activities at such sites.
                (6) A description of the information provided by Russia
            about its biological weapons dismantlement efforts to date.
                (7) An assessment of the accuracy and comprehensiveness of
            declarations by Russia regarding its biological weapons
            activities.
                (8) An identification of collaborative biological research
            projects carried out by the United States and Russia for which
            Cooperative Threat Reduction funds have been used.
                (9) An evaluation of the political and military utility of
            prior, existing, and prospective cooperative biological pathogen
            research programs carried out between the United States and
            Russia, and an assessment of the impact of such programs on
            increasing Russian military transparency with respect to
            biological weapons activities.
                (10) An assessment of the political and military utility of
            the long-term collaborative program advocated by the National
            Academy of Sciences in its October 27, 1997 report,
            ``Controlling Dangerous Pathogens: A Blueprint for U.S.-Russian
            Cooperation''.

    [[Page 112 STAT. 2167]]

    SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER SOVIET WEAPONS
                OF MASS DESTRUCTION PROGRAMS.

        Not later than January 31, 1999, the Secretary of Defense, in
    consultation with the Secretary of State, the Secretary of Energy, and
    any other appropriate officials, shall submit to the congressional
    defense committees a report on the number of individuals in the former
    Soviet Union who have significant expertise in the research,
    development, production, testing, and operational employment of
    ballistic missiles and weapons of mass destruction. The report shall
    contain the following:
                (1) A listing of the specific expertise of the individuals,
            by category and discipline.
                (2) An assessment of which categories of expertise would
            pose the greatest risks to the security of the United States if
            that expertise were transferred to potentially hostile states.
                (3) An estimate, by category, of the number of the
            individuals in paragraph (1) who are fully or partly employed at
            the time the report is submitted by the military-industrial
            complex of the former Soviet Union, the number of such
            individuals who are fully employed at the time the report is
            submitted by commercial ventures outside the military-industrial
            complex of the former Soviet Union, and the number of such
            individuals who are unemployed and underemployed at the time the
            report is submitted.
                (4) An identification of the nature, scope, and cost of
            activities conducted by the United States and other countries to
            assist in the employment in nonproliferation and nonmilitary-
            related endeavors and enterprises of individuals involved in the
            weapons complex of the former Soviet Union, and which categories
            of individuals are being targeted in these efforts.
                (5) An assessment of whether the activities identified under
            paragraph (4) should be reduced, maintained, or expanded.

    TITLE XIV--DOMESTIC <<NOTE: Defense Against Weapons of Mass Destruction
        Act of 1998.>> PREPAREDNESS FOR DEFENSE AGAINST WEAPONS OF MASS
    DESTRUCTION

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

    SEC. 1401. <<NOTE: 50 USC 2301 note.>> SHORT TITLE.

        This title may be cited as the ``Defense Against Weapons of Mass
    Destruction Act of 1998''.

    SEC. 1402. <<NOTE: 50 USC 2301 note.>> DOMESTIC PREPAREDNESS FOR
                RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS
                DESTRUCTION.

        (a) Enhanced Response Capability.--In light of the continuing
    potential for terrorist use of weapons of mass destruction against the
    United States and the need to develop a more fully coordinated response
    to that threat on the part of Federal, State, and local agencies, the
    President shall act to increase the effectiveness at

    [[Page 112 STAT. 2168]]

    the Federal, State, and local level of the domestic emergency
    preparedness program for response to terrorist incidents involving
    weapons of mass destruction by utilizing the President's existing
    authorities to develop an integrated program that builds upon the
    program established under the Defense Against Weapons of Mass
    Destruction Act of 1996 (title XIV of Public Law 104-201; 110 Stat.
    2714; 50 U.S.C. 2301 et seq.).
         <<NOTE: President.>> (b) Report.--Not later than January 31, 1999,
    the President shall submit to Congress a report containing information
    on the actions taken at the Federal, State, and local level to develop
    an integrated program to prevent and respond to terrorist incidents
    involving weapons of mass destruction.

    SEC. 1403. REPORT ON DOMESTIC EMERGENCY <<NOTE: 50 USC 2301
                note.>> PREPAREDNESS.

        Section 1051 of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 1889; 31 U.S.C. 1113 note) is
    amended by adding at the end the following new subsection:
        ``(c) Annex on Domestic Emergency Preparedness Program.--As part of
    the annual report submitted to Congress under subsection (b), the
    President shall include an annex which provides the following
    information on the domestic emergency preparedness program for response
    to terrorist incidents involving weapons of mass destruction (as
    established under section 1402 of the Defense Against Weapons of Mass
    Destruction Act of 1998):
                ``(1) Information on program responsibilities for each
            participating Federal department, agency, and bureau.
                ``(2) A summary of program activities performed during the
            preceding fiscal year for each participating Federal department,
            agency, and bureau.
                ``(3) A summary of program obligations and expenditures
            during the preceding fiscal year for each participating Federal
            department, agency, and bureau.
                ``(4) A summary of the program plan and budget for the
            current fiscal year for each participating Federal department,
            agency, and bureau.
                ``(5) The program budget request for the following fiscal
            year for each participating Federal department, agency, and
            bureau.
                ``(6) Recommendations for improving Federal, State, and
            local domestic emergency preparedness to respond to incidents
            involving weapons of mass destruction that have been made by the
            advisory panel to assess the capabilities of domestic response
            to terrorism involving weapons of mass destruction (as
            established under section 1405 of the Defense Against Weapons of
            Mass Destruction Act of 1998), and actions taken as a result of
            such recommendations.
                ``(7) Additional program measures and legislative authority
            for which congressional action may be required.''.

    SEC. 1404. THREAT AND RISK <<NOTE: 50 USC 2301 note.>> ASSESSMENTS.

        (a) Requirement To Develop Methodologies.--The Attorney General, in
    consultation with the Director of the Federal Bureau of Investigation
    and representatives of appropriate Federal, State, and local agencies,
    shall develop and test methodologies for assessing the threat and risk
    of terrorist employment of weapons of mass destruction against cities
    and other local areas. The results of the tests may be used to determine
    the training and equipment

    [[Page 112 STAT. 2169]]

    requirements under the program developed under section 1402. The
    methodologies required by this subsection shall be developed using
    cities or local areas selected by the Attorney General, acting in
    consultation with the Director of the Federal Bureau of Investigation
    and appropriate representatives of Federal, State, and local agencies.
        (b) Required Completion Date.--The requirements in subsection (a)
    shall be completed not later than 1 year after the date of the enactment
    of this Act.

    SEC. 1405. <<NOTE: 50 USC 2301 note.>> ADVISORY PANEL TO ASSESS DOMESTIC
                RESPONSE CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF
                MASS DESTRUCTION.

         <<NOTE: Contracts.>> (a) Requirement for Panel.--The Secretary of
    Defense, in consultation with the Attorney General, the Secretary of
    Energy, the Secretary of Health and Human Services, and the Director of
    the Federal Emergency Management Agency, shall enter into a contract
    with a federally funded research and development center to establish a
    panel to assess the capabilities for domestic response to terrorism
    involving weapons of mass destruction.

        (b) Composition of Panel; Selection.--(1) The panel shall be
    composed of members who shall be private citizens of the United States
    with knowledge and expertise in emergency response matters.
        (2) Members of the panel shall be selected by the federally funded
    research and development center in accordance with the terms of the
    contract established pursuant to subsection (a).
        (c) Procedures for Panel.--The federally funded research and
    development center shall be responsible for establishing appropriate
    procedures for the panel, including procedures for selection of a panel
    chairman.
        (d) Duties of Panel.--The panel shall--
                (1) assess Federal agency efforts to enhance domestic
            preparedness for incidents involving weapons of mass
            destruction;
                (2) assess the progress of Federal training programs for
            local emergency responses to incidents involving weapons of mass
            destruction;
                (3) assess deficiencies in programs for response to
            incidents involving weapons of mass destruction, including a
            review of unfunded communications, equipment, and planning
            requirements, and the needs of maritime regions;
                (4) recommend strategies for ensuring effective coordination
            with respect to Federal agency weapons of mass destruction
            response efforts, and for ensuring fully effective local
            response capabilities for weapons of mass destruction incidents;
            and
                (5) assess the appropriate roles of State and local
            government in funding effective local response capabilities.

        (e) Deadline To Enter Into Contract.--The Secretary of Defense shall
    enter into the contract required under subsection (a) not later than 60
    days after the date of the enactment of this Act.
        (f ) Deadline for Selection of Panel Members.--Selection of panel
    members shall be made not later than 30 days after the date on which the
    Secretary enters into the contract required by subsection (a).

    [[Page 112 STAT. 2170]]

        (g) Initial Meeting of the Panel.--The panel shall conduct its first
    meeting not later than 30 days after the date that all the selections to
    the panel have been made.
        (h) Reports.--(1) Not later than 6 months after the date of the
    first meeting of the panel, the panel shall submit to the President and
    to Congress an initial report setting forth its findings, conclusions,
    and recommendations for improving Federal, State, and local domestic
    emergency preparedness to respond to incidents involving weapons of mass
    destruction.
        (2) Not later than December 15 of each year, beginning in 1999 and
    ending in 2001, the panel shall submit to the President and to the
    Congress a report setting forth its findings, conclusions, and
    recommendations for improving Federal, State, and local domestic
    emergency preparedness to respond to incidents involving weapons of mass
    destruction.
        (i) Cooperation of Other Agencies.--(1) The panel may secure
    directly from the Department of Defense, the Department of Energy, the
    Department of Health and Human Services, the Department of Justice, and
    the Federal Emergency Management Agency, or any other Federal department
    or agency information that the panel considers necessary for the panel
    to carry out its duties.
        (2) The Attorney General, the Secretary of Defense, the Secretary of
    Energy, the Secretary of Health and Human Services, the Director of the
    Federal Emergency Management Agency, and any other official of the
    United States shall provide the panel with full and timely cooperation
    in carrying out its duties under this section.
        ( j) Funding.--The Secretary of Defense shall provide the funds
    necessary for the panel to carry out its duties from the funds available
    to the Department of Defense for weapons of mass destruction
    preparedness initiatives.
        (k) Compensation of Panel Members.--(1) Members of the panel shall
    serve without pay by reason of their work on the panel.
        (2) Members of the panel shall be allowed travel expenses, including
    per diem in lieu of subsistence, at rates authorized for employees of
    agencies under subchapter 57 of title 5, United States Code, while away
    from their homes or regular place of business in performance of services
    for the panel.
        (l) Termination of the Panel.--The panel shall terminate three years
    after the date of the appointment of the member selected as chairman of
    the panel.
        (m) Definition.--In this section, the term ``weapon of mass
    destruction'' has the meaning given that term in section 1403(1) of the
    Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C.
    2302(1)).

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

                        Subtitle A--Arms Control Matters

    Sec. 1501. One-year extension of limitation on retirement or
               dismantlement of
               strategic nuclear delivery systems.

    [[Page 112 STAT. 2171]]

    Sec. 1502. Transmission of executive branch reports providing Congress
               with classified summaries of arms control developments.
    Sec. 1503. Report on adequacy of emergency communications capabilities
               between United States and Russia.
    Sec. 1504. Russian nonstrategic nuclear weapons.

                      Subtitle B--Satellite Export Controls

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

                    Subtitle C--Other Export Control Matters

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

                    Subtitle D--Counterproliferation Matters

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

                        Subtitle A--Arms Control Matters

    SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR
                DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

        Section 1302 of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--
                (1) in subsections (a), (b), and (c)(2), by striking out
            ``during fiscal year 1998'' and inserting in lieu thereof
            ``during the strategic delivery systems retirement limitation
            period'';
                (2) in subsection (c)(1), by striking out ``during fiscal
            year 1998'';
                (3) in subsection (d)(1)--
                        (A) by striking out ``for fiscal year 1998''; and
                        (B) by striking out ``during fiscal year 1998''; and
                (4) by adding at the end the following new subsection:

        ``(g) Strategic Delivery Systems Retirement Limitation Period.--For
    purposes of this section, the term `strategic delivery systems
    retirement limitation period' means the period of fiscal years 1998 and
    1999.''.

    SEC. 1502. <<NOTE: 22 USC 2593a note.>> TRANSMISSION OF EXECUTIVE BRANCH
                REPORTS PROVIDING CONGRESS WITH CLASSIFIED SUMMARIES OF ARMS
                CONTROL DEVELOPMENTS.

        (a) Reporting Requirement.--The Director of the Arms Control and
    Disarmament Agency (or the Secretary of State, if the Arms Control and
    Disarmament Agency becomes an element of the Department of State) shall
    transmit to the Committee on National Security of the House of
    Representatives on a periodic basis reports containing classified
    summaries of arms control devel-
    opments.

    [[Page 112 STAT. 2172]]

        (b) Contents of Reports.--The reports required by subsection (a)
    shall include information reflecting the activities of forums
    established to consider issues relating to treaty implementation and
    treaty compliance.

    SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS CAPABILITIES
                BETWEEN UNITED STATES AND RUSSIA.

        Not later than 3 months after the date of the enactment of this Act,
    the Secretary of Defense shall submit to the Committee on Armed Services
    of the Senate and the Committee on National Security of the House of
    Representatives a report on the status and adequacy of current direct
    communications capabilities between the governments of the United States
    and Russia. The report shall identify each existing direct
    communications link between those governments and each such link that is
    designed to be used, or is available to be used, in an emergency
    situation. The Secretary shall describe in the report any shortcomings
    with the existing communications capabilities and shall include such
    proposals as the Secretary considers appropriate to improve those
    capabilities. In considering improvements to propose, the Secretary
    shall assess the feasibility and desirability of establishing a direct
    communications link between the commanders of appropriate United States
    unified and specified commands, including the United States Space
    Command and the United States Strategic Command, and their Russian
    counterparts.

    SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

        (a) Findings.--The Congress makes the following findings:
                (1) The 7,000 to 12,000 or more nonstrategic (or
            ``tactical'') nuclear weapons estimated by the United States
            Strategic Command to be in the Russian arsenal may present the
            greatest threat of sale or theft of a nuclear warhead in the
            world today.
                (2) As the number of deployed strategic warheads in the
            Russian and United States arsenals declines to just a few
            thousand under the START accords, Russia's vast superiority in
            tactical nuclear warheads--many of which have yields equivalent
            to strategic nuclear weapons--could become strategically
            destabilizing.
                (3) While the United States has unilaterally reduced its
            inventory of tactical nuclear weapons by nearly 90 percent since
            the end of the Cold War, Russia is behind schedule in
            implementing the steep tactical nuclear arms reductions pledged
            by former Soviet President Gorbachev in 1991 and Russian
            President Yeltsin in 1992, perpetuating the dangers from
            Russia's tactical nuclear stockpile.

        (b) Sense of Congress.--It is the sense of Congress that the
    President should call on Russia to expedite reduction of its tactical
    nuclear arsenal in accordance with the promises made in 1991 and 1992.
        (c) Report.--Not later than March 15, 1999, the Secretary of Defense
    shall submit to Congress a report on the nonstrategic nuclear weapons of
    Russia. The report shall include--
                (1) estimates regarding the current numbers, types, yields,
            viability, and locations of those weapons;
                (2) an assessment of the strategic implications of Russia's
            nonstrategic arsenal, including the potential use of those
            weapons in a strategic role or the use of their components in
            strategic

    [[Page 112 STAT. 2173]]

            nuclear systems and the potential of Russian superiority in
            tactical nuclear weapons to destabilize the overall nuclear
            balance as strategic nuclear weapons are sharply reduced under
            the START accords;
                (3) an assessment of the extent of the current threat of
            theft, sale, or unauthorized use of the warheads of those
            weapons, including an analysis of Russian command and control as
            it concerns the use of tactical nuclear weapons;
                (4) a summary of past, current, and planned efforts to work
            cooperatively with Russia to account for, secure, and reduce
            Russia's stockpile of tactical nuclear weapons and associated
            fissile material;
                (5) a summary of how the United States would prevent, or
            plans to cope militarily with, scenarios in which a
            deterioration in relations with Moscow causes Russia to redeploy
            tactical nuclear weapons or in which Russia threatens to employ,
            or actually employs, tactical nuclear weapons in a local or
            regional conflict involving the United States or allies of the
            United States; and
                (6) an assessment of the steps that could be taken by the
            United States to enhance military preparedness in order (A) to
            deter any potential attempt by Russia to possibly exploit its
            advantage in tactical nuclear weapons through coercive ``nuclear
            diplomacy'' or on the battlefield, or (B) to counter Russia if
            Russia should make such an attempt to exploit its advantage in
            tactical nuclear weapons.

        (d) Views.--The Secretary of Defense shall include in the report
    under subsection (c) the views of the Director of Central Intelligence
    and of the commander of the United States Strategic Command.

                      Subtitle B--Satellite Export Controls

    SEC. 1511. <<NOTE: 22 USC 2778 note.>> SENSE OF CONGRESS.

        It is the sense of Congress that--
                (1) United States business interests must not be placed
            above United States national security interests;
                (2) United States foreign policy and the policies of the
            United States regarding commercial relations with other
            countries should affirm the importance of observing and adhering
            to the Missile Technology Control Regime (MTCR);
                (3) the United States should encourage universal observance
            of the Guidelines to the Missile Technology Control Regime;
                (4) the exportation or transfer of advanced communication
            satellites and related technologies from United States sources
            to foreign recipients should not increase the risks to the
            national security of the United States;
                (5) due to the military sensitivity of the technologies
            involved, it is in the national security interests of the United
            States that United States satellites and related items be
            subject to the same export controls that apply under United
            States law and practices to munitions;
                (6) the United States should not issue any blanket waiver of
            the suspensions contained in section 902 of the Foreign
            Relations Authorization Act, Fiscal Years 1990 and 1991 (Public
            Law 101-246), regarding the export of satellites of United

    [[Page 112 STAT. 2174]]

            States origin intended for launch from a launch vehicle owned by
            the People's Republic of China;
                (7) the United States should pursue policies that protect
            and enhance the United States space launch industry; and
                (8) the United States should not export to the People's
            Republic of China missile equipment or technology that would
            improve the missile or space launch capabilities of the People's
            Republic of China.

    SEC. 1512. <<NOTE: 22 USC 2778 note.>> CERTIFICATION OF EXPORTS OF
                MISSILE EQUIPMENT OR TECHNOLOGY TO CHINA.

        The President shall certify to the Congress at least 15 days in
    advance of any export to the People's Republic of China of missile
    equipment or technology (as defined in section 74 of the Arms Export
    Control Act (22 U.S.C. 2797c)) that--
                (1) such export is not detrimental to the United States
            space launch industry; and
                (2) the missile equipment or technology, including any
            indirect technical benefit that could be derived from such
            export, will not measurably improve the missile or space launch
            capabilities of the People's Republic of China.

    SEC. 1513. <<NOTE: 22 USC 2778 note.>> SATELLITE CONTROLS UNDER THE
                UNITED STATES MUNITIONS LIST.

        (a) Control of Satellites on the United States Munitions List.--
    Notwithstanding any other provision of law, all satellites and related
    items that are on the Commerce Control List of dual-use items in the
    Export Administration Regulations (15 CFR part 730 et seq.) on the date
    of the enactment of this Act shall be transferred to the United States
    Munitions List and controlled under section 38 of the Arms Export
    Control Act (22 U.S.C. 2778).
        (b) Defense Trade Controls Registration Fees.--Section 45 of the
    State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is
    amended--
                (1) in subsection (a)--
                        (A) by striking out ``$700,000'' and inserting in
                    lieu thereof ``100 percent''; and
                        (B) by striking out ``(a) Defense Trade Controls
                    Registration Fees.--''; and
                (2) by striking out subsection (b).

        (c) Effective Date.--(1) Subsection (a) shall take effect on March
    15, 1999, and shall not apply to any export license issued before such
    effective date or to any export license application made under the
    Export Administration Regulations before such effective date.
        (2) The amendments made by subsection (b) shall be effective as of
    October 1, 1998.
        (d) Report.--Not later than January 1, 1999, the Secretary of State,
    in consultation with the Secretary of Defense and the Secretary of
    Commerce, shall submit to Congress a report containing--
                (1) a detailed description of the plans of the Department of
            State to implement the requirements of this section, including
            any organizational changes that are required and any Executive
            orders or regulations that may be required;
                (2) an identification and explanation of any steps that
            should be taken to improve the license review process for

    [[Page 112 STAT. 2175]]

            exports of the satellites and related items described in
            subsection (a), including measures to shorten the timelines for
            license application reviews, and any measures relating to the
            transparency of the license review process and dispute
            resolution procedures;
                (3) an evaluation of the adequacy of resources available to
            the Department of State, including fiscal and personnel
            resources, to carry out the additional activities required by
            this section; and
                (4) any recommendations for additional actions, including
            possible legislation, to improve the export licensing process
            under the Arms Export Control Act for the satellites and related
            items described in subsection (a).

    SEC. 1514. <<NOTE: 22 USC 2778 note.>> NATIONAL SECURITY CONTROLS ON
                SATELLITE EXPORT LICENSING.

        (a) Actions by the President.--Notwithstanding any other provision
    of law, the President shall take such actions as are necessary to
    implement the following requirements for improving national security
    controls in the export licensing of satellites and related items:
                (1) Mandatory technology control plans.--All export licenses
            shall require a technology transfer control plan approved by the
            Secretary of Defense and an encryption technology transfer
            control plan approved by the Director of the National Security
            Agency.
                (2) Mandatory monitors and reimbursement.--
                        (A) Monitoring of proposed foreign launch of
                    satellites.--In any case in which a license is approved
                    for the export of a satellite or related items for
                    launch in a foreign country, the Secretary of Defense
                    shall monitor all aspects of the launch in order to
                    ensure that no unauthorized transfer of technology
                    occurs, including technical assistance and technical
                    data. The costs of such monitoring services shall be
                    fully reimbursed to the Department of Defense by the
                    person or entity receiving such services. All
                    reimbursements received under this subparagraph shall be
                    credited to current appropriations available for the
                    payment of the costs incurred in providing such
                    services.
                        (B) Contents of monitoring.--The monitoring under
                    subparagraph (A) shall cover, but not be limited to--
                              (i) technical discussions and activities,
                          including the design, development, operation,
                          maintenance, modification, and repair of
                          satellites, satellite components, missiles, other
                          equipment, launch facilities, and launch vehicles;
                              (ii) satellite processing and launch
                          activities, including launch preparation,
                          satellite transportation, integration of the
                          satellite with the launch vehicle, testing and
                          checkout prior to launch, satellite launch, and
                          return of equipment to the United States;
                              (iii) activities relating to launch failure,
                          delay, or cancellation, including post-launch
                          failure investigations; and
                              (iv) all other aspects of the launch.

    [[Page 112 STAT. 2176]]

                (3) Mandatory licenses for crash-investigations.--In the
            event of the failure of a launch from a foreign country of a
            satellite of United States origin--
                        (A) the activities of United States persons or
                    entities in connection with any subsequent investigation
                    of the failure are subject to the controls established
                    under section 38 of the Arms Export Control Act,
                    including requirements for licenses issued by the
                    Secretary of State for participation in that
                    investigation;
                        (B) officials of the Department of Defense shall
                    monitor all activities associated with the investigation
                    to insure against unauthorized transfer of technical
                    data or services; and
                        (C) the Secretary of Defense shall establish and
                    implement a technology transfer control plan for the
                    conduct of the investigation to prevent the transfer of
                    information that could be used by the foreign country to
                    improve its missile or space launch capabilities.
                (4) Mandatory notification and certification.--All
            technology transfer control plans for satellites or related
            items shall require any United States person or entity involved
            in the export of a satellite of United States origin or related
            items to notify the Department of Defense in advance of all
            meetings and interactions with any foreign person or entity
            providing launch services and require the United States person
            or entity to certify after the launch that it has complied with
            this notification requirement.
                (5) Mandatory intelligence community review.--The Secretary
            of Commerce and the Secretary of State shall provide to the
            Secretary of Defense and the Director of Central Intelligence
            copies of all export license applications and technical
            assistance agreements submitted for approval in connection with
            launches in foreign countries of satellites to verify the
            legitimacy of the stated end-user or end-users.
                (6) Mandatory sharing of approved licenses and agreements.--
            The Secretary of State shall provide copies of all approved
            export licenses and technical assistance agreements associated
            with launches in foreign countries of satellites to the
            Secretaries of Defense and Energy, the Director of Central
            Intelligence, and the Director of the Arms Control and
            Disarmament Agency.
                (7) Mandatory notification to congress on licenses.--Upon
            issuing a license for the export of a satellite or related items
            for launch in a foreign country, the head of the department or
            agency issuing the license shall so notify Congress.
                (8) Mandatory reporting on monitoring activities.--The
            Secretary of Defense shall provide to Congress an annual report
            on the monitoring of all launches in foreign countries of
            satellites of United States origin.
                (9) Establishing safeguards program.--The Secretary of
            Defense shall establish a program for recruiting, training, and
            maintaining a staff dedicated to monitoring launches in foreign
            countries of satellites and related items of United States
            origin.

        (b) Exception.--This section shall not apply to the export of a
    satellite or related items for launch in, or by nationals of,

    [[Page 112 STAT. 2177]]

    a country that is a member of the North Atlantic Treaty Organization or
    that is a major non-NATO ally of the United States.
        (c) Effective <<NOTE: President.>> Date.--The President shall take
    the actions required by subsection (a) not later than 45 days after the
    date of the enactment of this Act.

    SEC. 1515. <<NOTE: 22 USC 2778 note.>> REPORT ON EXPORT OF SATELLITES
                FOR LAUNCH BY PEOPLE'S REPUBLIC OF CHINA.

        (a) Requirement for Report.--Each report to Congress submitted
    pursuant to subsection (b) of section 902 of the Foreign Relations
    Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note;
    Public Law 101-246) to waive the restrictions contained in subsection
    (a) of that section on the export to the People's Republic of China of
    any satellite of United States origin or related items shall be
    accompanied by a detailed justification setting forth the following:
                (1) A detailed description of all militarily sensitive
            characteristics integrated within, or associated with, the
            satellite.
                (2) An estimate of the number of United States civilian
            contract personnel expected to be needed in country to carry out
            the proposed satellite launch.
                (3)(A) A detailed description of the United States
            Government's plan to monitor the proposed satellite launch to
            ensure that no unauthorized transfer of technology occurs,
            together with an estimate of the number of officers and
            employees of the United States that are expected to be needed in
            country to carry out monitoring of the proposed satellite
            launch; and
                (B) the estimated cost to the Department of Defense of
            monitoring the proposed satellite launch and the amount of such
            cost that is to be reimbursed to the department.
                (4) The reasons why the proposed satellite launch is in the
            national security interest of the United States.
                (5) The impact of the proposed export on employment in the
            United States, including the number of new jobs created in the
            United States, on a State-by-State basis, as a direct result of
            the proposed export.
                (6) The number of existing jobs in the United States that
            would be lost, on a State-by-State basis, as a direct result of
            the proposed export not being licensed.
                (7) The impact of the proposed export on the balance of
            trade between the United States and the People's Republic of
            China and on reducing the current United States trade deficit
            with the People's Republic of China.
                (8) The impact of the proposed export on the transition of
            the People's Republic of China from a nonmarket economy to a
            market economy and the long-term economic benefit to the United
            States.
                (9) The impact of the proposed export on opening new markets
            to United States-made products through the purchase by the
            People's Republic of China of United States-made goods and
            services not directly related to the proposed export.
                (10) The impact of the proposed export on reducing acts,
            policies, and practices that constitute significant trade
            barriers to United States exports or foreign direct investment
            in the People's Republic of China by United States nationals.

    [[Page 112 STAT. 2178]]

                (11) The increase that will result from the proposed export
            in the overall market share of the United States for goods and
            services in comparison to Japan, France, Germany, the United
            Kingdom, and Russia.
                (12) The impact of the proposed export on the willingness of
            the People's Republic of China to modify its commercial and
            trade laws, practices, and regulations to make United States-
            made goods and services more accessible to that market.
                (13) The impact of the proposed export on the willingness of
            the People's Republic of China to reduce formal and informal
            trade barriers and tariffs, duties, and other fees on United
            States-made goods and services entering that country.

        (b) Militarily Sensitive Characteristics Defined.--In this section,
    the term ``militarily sensitive characteristics'' includes antijamming
    capability, antennas, crosslinks, baseband processing, encryption
    devices, radiation-hardened devices, propulsion systems, pointing
    accuracy, kick motors, and other such characteristics as are specified
    by the Secretary of Defense.

    SEC. 1516. <<NOTE: 22 USC 2778 note.>> RELATED ITEMS DEFINED.

        In this subtitle, the term ``related items'' means the satellite
    fuel, ground support equipment, test equipment, payload adapter or
    interface hardware, replacement parts, and non-embedded solid propellant
    orbit transfer engines described in the report submitted to Congress by
    the Department of State on February 6, 1998, pursuant to section 38(f )
    of the Arms Export Control Act (22 U.S.C. 2778(f )).

                    Subtitle C--Other Export Control Matters

    SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF
                DEFENSE.

        (a) Functions of the Under Secretary for Policy.--Section 134(b) of
    title 10, United States Code, is amended by adding at the end the
    following new paragraph:
        ``(3) Subject to the authority, direction, and control of the
    Secretary of Defense, the Under Secretary shall have responsibility for
    supervising and directing activities of the Department of Defense
    relating to export controls.''.
        (b) Establishment of Deputy Under Secretary for Technology Security
    Policy.--(1) Chapter 4 of title 10, United States Code, is amended by
    inserting after section 134a the following new section:

    ``Sec. 134b. Deputy Under Secretary of Defense for Technology Security
                            Policy

        ``(a) There is in the Office of the Under Secretary of Defense for
    Policy a Deputy Under Secretary of Defense for Technology Security
    Policy.
        ``(b) The Deputy Under Secretary serves as the Director of the
    Defense Technology Security Administration (or any successor
    organization charged with similar responsibilities).
        ``(c) The principal duties of the Deputy Under Secretary are--
                ``(1) assisting the Under Secretary of Defense for Policy in
            supervising and directing the activities of the Department of
            Defense relating to export controls; and

    [[Page 112 STAT. 2179]]

                ``(2) assisting the Under Secretary of Defense for Policy in
            developing policies and positions regarding the appropriate
            export control policies and procedures that are necessary to
            protect the national security interests of the United States.

        ``(d) The Deputy Under Secretary shall perform such additional
    duties and exercise such authority as the Secretary of Defense may
    prescribe.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 134a the
    following new item:

    ``134b. Deputy Under Secretary of Defense for Technology Security
               Policy.''.

         <<NOTE: 10 USC 134 note.>> (c) Time for Implementation.--The
    Secretary of Defense shall complete the actions necessary to implement
    the amendment made by subsection (a) and to establish the office of
    Deputy Under Secretary of Defense for Technology Security Policy in
    accordance with section 134b of title 10, United States Code, as added
    by subsection (b), not later than 60 days after the date of the
    enactment of this Act.

         <<NOTE: 10 USC 134 note.>> (d) Report.--Not later than 90 days
    after the date of the enactment of this Act, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the plans of the Secretary for implementing the amendments made by
    subsections (a) and (b). The report shall include the following:
                (1) A description of any organizational changes that are to
            be made within the Department of Defense to implement those
            amendments.
                (2) A description of the role of the Chairman of the Joint
            Chiefs of Staff in the export control activities of the
            Department of Defense after those subsections are implemented,
            together with a discussion of how that role compares to the
            Chairman's role in those activities before the implementation of
            those subsections.

    SEC. 1522. <<NOTE: 50 USC app. 2404 note.>> RELEASE OF EXPORT
                INFORMATION BY DEPARTMENT OF COMMERCE TO OTHER AGENCIES FOR
                PURPOSE OF NATIONAL SECURITY ASSESSMENT.

        (a) Release of Export Information.--The Secretary of Commerce shall,
    upon the written request of an official specified in subsection (c),
    transmit to that official any information relating to exports that is
    held by the Department of Commerce and is requested by that official for
    the purpose of assessing national security risks. The Secretary shall
    transmit such information within 10 business days after receiving such a
    request.
        (b) Nature of Information.--The information referred to in
    subsection (a) includes information concerning--
                (1) export licenses issued by the Department of Commerce;
                (2) exports that were carried out under an export license
            issued by the Department of Commerce; and
                (3) exports from the United States that were carried out
            without an export license.

        (c) Requesting Officials.--The officials referred to in subsection
    (a) are the Secretary of State, the Secretary of Defense, the Secretary
    of Energy, and the Director of Central Intelligence. Each of those
    officials may delegate to any other official within

    [[Page 112 STAT. 2180]]

    their respective departments and agency the authority to request
    information under subsection (a).

    SEC. 1523. <<NOTE: President. 42 USC 2155 note.>> NUCLEAR EXPORT
                REPORTING REQUIREMENT.

        (a) Notification of Congress.--The President shall notify Congress
    upon the granting of a license by the Nuclear Regulatory Commission for
    the export or reexport of any nuclear-related technology or equipment,
    including source material, special nuclear material, or equipment or
    material especially designed or prepared for the processing, use, or
    production of special nuclear material.
        (b) Applicability.--The requirements of this section shall apply
    only to an export or reexport to a country that--
                (1) the President has determined is a country that has
            detonated a nuclear explosive device; and
                (2) is not a member of the North Atlantic Treaty
            Organization.

    SEC. 1524. <<NOTE: 50 USC app. 2404 note.>> EXECUTION OF OBJECTION
                AUTHORITY WITHIN THE DEPARTMENT OF DEFENSE.

        Section 1211 of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 1932) is amended by adding at
    the end the following new subsection:
        ``(g) Delegation of Objection Authority Within the Department of
    Defense.--For the purposes of the Department of Defense, the authority
    to issue an objection referred to in subsection (a) shall be executed
    for the Secretary of Defense by an official at the Assistant Secretary
    level within the office of the Under Secretary of Defense for Policy. In
    implementing subsection (a), the Secretary of Defense shall ensure that
    Department of Defense procedures maximize the ability of the Department
    of Defense to be able to issue an objection within the 10-day period
    specified in subsection (c).''.

                    Subtitle D--Counterproliferation Matters

    SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR
                SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

        (a) Amount Authorized for Fiscal Year 1999.--The total amount of
    assistance for fiscal year 1999 provided by the Secretary of Defense
    under section 1505 of the Weapons of Mass Destruction Control Act of
    1992 (22 U.S.C. 5859a) that is provided for activities of the Department
    of Defense in support of the United Nations Special Commission on Iraq,
    may not exceed $15,000,000.
        (b) Extension of Authority To Provide Assistance.--Subsection (f )
    of section 1505 of the Weapons of Mass Destruction Control Act of 1992
    (22 U.S.C. 5859a) is amended by striking out ``1998'' and inserting in
    lieu thereof ``1999''.

    SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

        The Congress--
                (1) strongly condemns the decisions by the Governments of
            India and Pakistan to conduct nuclear tests in May 1998;
                (2) calls for the Governments of India and Pakistan to
            commit not to conduct any additional nuclear tests;
                (3) urges the Governments of India and Pakistan to take
            immediate steps to reduce tensions between the two countries;

    [[Page 112 STAT. 2181]]

                (4) urges India and Pakistan to engage in high-level
            dialogue aimed at reducing the likelihood of armed conflict,
            enacting confidence and security building measures, and
            resolving areas of dispute;
                (5) commends all nations to take steps which will reduce
            tensions in South Asia, including appropriate measures to
            prevent the transfer of technology that could further exacerbate
            the arms race in South Asia, and thus avoid further
            deterioration of security there;
                (6) calls upon the President, leaders of all nations, and
            the United Nations to encourage a diplomatic, negotiated
            solution between the Governments of India and Pakistan to
            promote peace and stability in South Asia and resolve the
            current impasse;
                (7) encourages United States diplomatic leadership in
            assisting the Governments of India and Pakistan to seek a
            negotiated resolution of their 50-year conflict over the
            disputed territory in Kashmir;
                (8) urges India and Pakistan to take immediate, binding, and
            verifiable steps to roll back their nuclear programs and come
            into compliance with internationally accepted norms regarding
            the proliferation of weapons of mass destruction; and
                (9) urges the United States to reevaluate its bilateral
            relationship with India and Pakistan, in light of the new
            regional security realities in South Asia, with the goal of
            preventing further nuclear and ballistic missile proliferation,
            diffusing long-standing regional rivalries between India and
            Pakistan, and securing commitments from India and Pakistan
            which, if carried out, could result in a calibrated lifting of
            United States sanctions imposed under the Arms Export Control
            Act and the Nuclear Proliferation Prevention Act of 1994.

    SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED MISSILE
                THREAT IN ASIA-PACIFIC REGION.

        (a) Study.--The Secretary of Defense shall carry out a study of the
    architecture requirements for the establishment and operation of a
    theater ballistic missile defense system in the Asia-Pacific region that
    would have the capability to protect key regional allies of the United
    States.
        (b) Report.--(1) Not later than January 1, 1999, the Secretary shall
    submit to the Committee on National Security of the House of
    Representatives and the Committee on Armed Services of the Senate a
    report containing--
                (A) the results of the study conducted under subsection (a);
                (B) the factors used to obtain such results; and
                (C) a description of any United States missile defense
            system currently deployed or under development that could be
            transferred to key allies of the United States in the Asia-
            Pacific region to provide for their self-defense against limited
            ballistic missile attacks.

        (2) The report shall be submitted in both classified and
    unclassified form.

    [[Page 112 STAT. 2182]]

    DIVISION B--MILITARY <<NOTE: Military Construction Authorization Act for
    Fiscal Year 1999.>> CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 1999''.

                                 TITLE XXI--ARMY

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

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:

                         Army: Inside the United States
    ------------------------------------------------------------------------
                State               Installation or location      Amount
    ------------------------------------------------------------------------
    Alabama......................  Anniston Army Depot......      $3,550,000
                                   Fort Rucker..............     $14,300,000
                                   Redstone Arsenal.........      $1,550,000
    Alaska.......................  Fort Wainwright..........     $22,600,000
    California...................  Fort Irwin...............     $14,800,000
    Georgia......................  Fort Benning.............     $28,600,000
    Hawaii.......................  Schofield Barracks.......     $71,000,000
    Illinois.....................  Rock Island Arsenal......      $5,300,000
    Indiana......................  Crane Army Ammunition          $7,100,000
                                    Activity................
    Kansas.......................  Fort Riley...............     $41,000,000
    Kentucky.....................  Blue Grass Army Depot....      $5,300,000
                                   Fort Campbell............     $75,000,000
                                   Fort Knox................     $23,000,000
    Louisiana....................  Fort Polk................      $8,300,000
    Maryland.....................  Fort Detrick.............      $3,550,000
                                   Fort Meade...............      $5,300,000
    Missouri.....................  Fort Leonard Wood........     $28,200,000
    New Jersey...................  Fort Monmouth............      $7,600,000
                                   Picatinny Arsenal........      $8,400,000
    New York.....................  Fort Drum................      $4,650,000
                                   United States Military        $85,000,000
                                    Academy, West Point.....
    North Carolina...............  Fort Bragg...............     $95,900,000
    Oklahoma.....................  Fort Sill................     $13,800,000
                                   McAlester Army Ammunition     $10,800,000
                                    Plant...................
    Texas........................  Fort Bliss...............      $4,100,000
                                   Fort Hood................     $32,500,000
                                   Fort Sam Houston.........     $27,300,000
    Utah.........................  Tooele Army Depot........      $3,900,000
    Virginia.....................  National Ground               $46,200,000
                                    Intelligence Center,
                                    Charlottesville.........
                                   Fort Eustis..............     $41,181,000
                                   Fort Myer................      $6,200,000

    [[Page 112 STAT. 2183]]

    Washington...................  Fort Lewis...............     $18,200,000
    CONUS Classified.............  Classified Location......      $4,600,000
                                                             ---------------
                                           Total............    $768,781,000
    ------------------------------------------------------------------------

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

                         Army: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      location             Amount
    ------------------------------------------------------------------------
    Belgium........................  80th Area Support Group      $6,300,000
    Germany........................  Schweinfurt............     $18,000,000
                                     Wurzburg...............      $4,250,000
    Korea..........................  Camp Casey.............     $21,400,000
                                     Camp Castle............     $18,226,000
                                     Camp Humphreys.........      $8,500,000
                                     Camp Stanley...........      $5,800,000
    Kwajalein......................  Kwajalein Atoll........     $48,600,000
                                                             ---------------
                                             Total..........    $131,076,000
    ------------------------------------------------------------------------

    SEC. 2102. FAMILY HOUSING.

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

                                                  Army: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Purpose                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama...............................  Redstone Arsenal.........  118 Units....................     $14,000,000
    Hawaii................................  Schofield Barracks.......  64 Units.....................     $14,700,000
    North Carolina........................  Fort Bragg...............  170 Units....................     $19,800,000
    Texas.................................  Fort Hood................  154 Units....................     $21,600,000
    Virginia..............................  Fort Lee.................  80 Units.....................     $13,000,000
                                                                                                     ---------------
                                                                           Total....................     $83,100,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2104(a)(5)(A), the Secretary
    of the Army may carry out architectural and engineering services and
    construction design activities with respect to the construction or
    improvement of family housing units in an amount not to exceed
    $6,350,000.

    SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(5)(A), the Secretary of the Army may

    [[Page 112 STAT. 2184]]

    improve existing military family housing units in an amount not to
    exceed $48,479,000.

    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1998, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Army in the total amount of $2,098,713,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $609,781,000.
                (2) For military construction projects outside the United
            States authorized by section 2101(b), $95,076,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $12,500,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $64,269,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $137,929,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,097,697,000.
                (6) For the construction of the missile software engineering
            annex, phase II, Redstone Arsenal, Alabama, authorized by
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat.
            1966), $13,600,000.
                (7) For the construction of a disciplinary barracks, phase
            II, Fort Leavenworth, Kansas, authorized by section 2101(a) of
            the Military Construction Authorization Act for Fiscal Year
            1998, $29,000,000.
                (8) For the construction of the whole barracks complex
            renewal, Fort Sill, Oklahoma, authorized by section 2101(a) of
            the Military Construction Authorization Act for Fiscal Year
            1998, $20,500,000.
                (9) For rail yard expansion at Fort Carson, Colorado,
            authorized by section 2101(a) of the Military Construction
            Authorization Act for Fiscal Year 1998, $23,000,000.
                (10) For the construction of an aerial gunnery range at Fort
            Drum, New York, authorized by section 2101(a) of the Military
            Construction Authorization Act for Fiscal Year 1998, $9,000,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2101 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);
                (2) $16,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a multipurpose digital
            training range at Fort Knox, Kentucky);

    [[Page 112 STAT. 2185]]

                (3) $15,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a railhead facility at
            Fort Hood, Texas);
                (4) $73,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a cadet development
            center at the United States Military Academy, West Point, New
            York);
                (5) $36,000,000 (the balance of the amount authorized under
            section 2101(b) for the construction of a powerplant on Roi
            Namur Island at Kwajalein Atoll, Kwajalein);
                (6) $3,500,000 (the balance of the amount authorized under
            section 2101(a) for the construction of the whole barracks
            complex renewal at Fort Wainwright, Alaska);
                (7) $24,500,000 (the balance of the amount authorized under
            section 2101(a) for the construction of the whole barracks
            complex renewal at Fort Riley, Kansas); and
                (8) $27,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of the whole barracks
            complex renewal at Fort Campbell, Kentucky).

        (c) Adjustments.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (10) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by--
                (1) $2,639,000, which represents the combination of project
            savings in military family housing construction resulting from
            favorable bids, reduced overhead costs, and cancellations due to
            force structure changes;
                (2) $3,000,000, which represents the combination of savings
            in military family housing support resulting from favorable
            bids, reduced overhead costs, and cancellations due to force
            structure changes; and
                (3) $8,000,000, which represents the combination of project
            savings in military construction resulting from favorable bids,
            reduced overhead costs, and cancellations due to force structure
            changes.

    SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998
                PROJECTS.

        (a) Modification.--The table in section 2101(a) of the Military
    Construction Authorization Act for Fiscal Year 1998 (division B of
    Public Law 105-85; 111 Stat. 1967) is amended--
                (1) in the item relating to Fort Drum, New York, by striking
            out ``$24,400,000'' in the amount column and inserting in lieu
            thereof ``$24,900,000'';
                (2) in the item relating to Fort Sill, Oklahoma, by striking
            out ``$25,000,000'' in the amount column and inserting in lieu
            thereof ``$28,500,000''; and
                (3) by striking out the amount identified as the total in
            the amount column and inserting in lieu thereof
            ``$602,750,000''.

        (b) Conforming Amendments.--Section 2104 of that Act (111 Stat.
    1968) is amended--
                (1) in subsection (a)--
                        (A) in the matter preceding paragraph (1), by
                    striking out ``$2,010,466,000'' and inserting in lieu
                    thereof ``$2,013,966,000''; and
                        (B) in paragraph (1), by striking out
                    ``$435,350,000'' and inserting in lieu thereof
                    ``$438,850,000''; and

    [[Page 112 STAT. 2186]]

                (2) in subsection (b)(8), by striking out ``$8,500,000'' and
            inserting in lieu thereof ``$9,000,000''.

                                TITLE XXII--NAVY

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

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(1), the
    Secretary of the Navy may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:

                         Navy: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       location             Amount
    ------------------------------------------------------------------------
    Arizona........................  Marine Corps Air            $11,010,000
                                      Station, Yuma.
                                     Naval Observatory              $990,000
                                      Detachment, Flagstaff.
    California.....................  Marine Corps Air            $29,570,000
                                      Station, Miramar......
                                     Marine Corps Base, Camp     $40,430,000
                                      Pendleton.............
                                     Naval Air Station,          $20,640,000
                                      Lemoore.
                                     Naval Air Warfare           $10,140,000
                                      Center Weapons
                                      Division, China Lake.
                                     Naval Facility, San          $8,350,000
                                      Clemente Island.......
                                     Naval Submarine Base,       $11,400,000
                                      San Diego.
    Connecticut....................  Naval Submarine Base,       $11,330,000
                                      New London............
    District of Columbia...........  Naval District,                $790,000
                                      Washington.
    Florida........................  Naval Air Station, Key       $3,730,000
                                      West.
                                     Naval Air Station,           $1,500,000
                                      Jacksonville.
                                     Naval Air Station,           $1,400,000
                                      Whiting Field.
                                     Naval Station, Mayport.      $6,163,000
    Georgia........................  Marine Corps Logistics       $2,800,000
                                      Base, Albany..........
                                     Naval Submarine Base,        $2,550,000
                                      Kings Bay.............
    Hawaii.........................  Fleet and Industrial         $9,730,000
                                      Supply Center, Pearl
                                      Harbor................
                                     Marine Corps Air            $46,410,000
                                      Station, Kaneohe Bay..
                                     Naval Communications &       $1,970,000
                                      Telecommunications
                                      Area Master Station
                                      Eastern Pacific,
                                      Wahiawa...............
                                     Naval Shipyard, Pearl       $11,400,000
                                      Harbor.
                                     Naval Station, Pearl        $18,180,000
                                      Harbor.
                                     Naval Submarine Base,        $8,060,000
                                      Pearl Harbor..........
                                     Navy Public Works           $28,967,000
                                      Center, Pearl Harbor..
    Illinois.......................  Naval Training Center,      $19,950,000
                                      Great Lakes...........
    Indiana........................  Naval Surface Warfare       $11,110,000
                                      Center, Crane.........
    Maryland.......................  Naval Surface Warfare       $13,270,000
                                      Center, Indian Head
                                      Division, Indian Head.
                                     United States Naval          $4,300,000
                                      Academy...............
    Mississippi....................  Naval Air Station,           $3,280,000
                                      Meridian.
                                     Naval Construction          $10,670,000
                                      Battalion Center,
                                      Gulfport..............

    [[Page 112 STAT. 2187]]

    North Carolina.................  Marine Corps Air             $6,040,000
                                      Station, Cherry Point.
                                     Marine Corps Base, Camp     $14,600,000
                                      LeJeune...............
    Pennsylvania...................  Naval Surface Warfare        $2,410,000
                                      Center Ship Systems
                                      Engineering Station,
                                      Philadelphia..........
                                     Naval Inventory Control      $1,600,000
                                      Point, Mechanicsburg..
                                     Naval Inventory Control      $1,550,000
                                      Point, Philadelphia...
    Rhode Island...................  Naval Education and          $5,630,000
                                      Training Center,
                                      Newport...............
                                     Naval Undersea Warfare       $9,140,000
                                      Center Division,
                                      Newport...............
    South Carolina.................  Marine Corps Air             $1,770,000
                                      Station, Beaufort.....
                                     Marine Corps Reserve        $15,990,000
                                      Detachment, Parris
                                      Island................
                                     Naval Weapons Station,       $9,737,000
                                      Charleston............
    Texas..........................  Naval Station,              $12,200,000
                                      Ingleside.
    Virginia.......................  Fleet and Industrial         $1,770,000
                                      Supply Center, Norfolk
                                      (Craney Island).......
                                     Fleet Training Center,       $5,700,000
                                      Norfolk.
                                     Naval Air Station,           $6,400,000
                                      Oceana.
                                     Naval Shipyard,              $6,180,000
                                      Norfolk, Portsmouth...
                                     Naval Station, Norfolk.     $45,530,000
                                     Naval Surface Warfare       $15,680,000
                                      Center, Dahlgren......
                                     Tactical Training Group      $2,430,000
                                      Atlantic, Dam Neck....
    Washington.....................  Naval Shipyard, Puget        $4,300,000
                                      Sound.
                                     Strategic Weapons            $2,750,000
                                      Facility Pacific,
                                      Bremerton.............
                                                             ---------------
                                             Total..........    $521,497,000
    ------------------------------------------------------------------------

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

                         Navy: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      location             Amount
    ------------------------------------------------------------------------
    Greece.........................  Naval Support Activity,      $5,260,000
                                      Souda Bay.............
    Guam...........................  Naval Activities, Guam.     $10,310,000
    Italy..........................  Naval Support Activity,     $18,270,000
                                      Naples.
    United Kingdom.................  Joint Maritime               $2,010,000
                                      Communications Center,
                                      St. Mawgan............
                                                             ---------------
                                             Total..........     $35,850,000
    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2204(a)(5)(A), the Secretary of the Navy may construct or acquire

    [[Page 112 STAT. 2188]]

    family housing units (including land acquisition) at the installations,
    for the purposes, and in the amounts set forth in the following table:

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    California..............................  Naval Air Station, Lemoore  162 Units.................     $30,379,000
    Hawaii..................................  Navy Public Works Center,   150 Units.................     $29,125,000
                                               Pearl Harbor.............
                                                                                                     ---------------
                                                                              Total.................     $59,504,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2204(a)(5)(A), the Secretary
    of the Navy may carry out architectural and engineering services and
    construction design activities with respect to the construction or
    improvement of military family housing units in an amount not to exceed
    $15,618,000.

    SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2204(a)(5)(A), the Secretary of the Navy may improve existing
    military family housing units in an amount not to exceed $227,791,000.

    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1998, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Navy in the total amount of $1,812,476,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $503,997,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $35,850,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $9,900,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $60,846,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $302,913,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $915,293,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2201 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);

    [[Page 112 STAT. 2189]]

                (2) $13,500,000 (the balance of the amount authorized under
            section 2202(a) for the construction of a berthing pier at Naval
            Station, Norfolk, Virginia); and
                (3) $4,000,000 (the balance of the amount authorized under
            section 2201(a) for the construction of a bachelor enlisted
            quarters at Marine Corps Air Station, Kaneohe Bay, Hawaii).

        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (5) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by--
                (1) $7,323,000, which represents the combination of project
            savings in military family housing construction resulting from
            favorable bids, reduced overhead costs, and cancellations due to
            force structure changes;
                (2) $3,000,000, which represents the combination of savings
            in military family housing support resulting from favorable
            bids, reduced overhead costs, and cancellations due to force
            structure changes; and
                (3) $6,000,000, which represents the combination of project
            savings in military construction resulting from favorable bids,
            reduced overhead costs, and cancellations due to force structure
            changes.

    SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE
                CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

        The Secretary of the Navy may accept from the State of North
    Carolina a road construction project valued at approximately $2,000,000,
    which is to be constructed at Marine Corps Base, Camp Lejeune, North
    Carolina, in accordance with plans and specifications acceptable to the
    Secretary.

                             TITLE XXIII--AIR FORCE

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

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

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

                       Air Force: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Maxwell Air Force Base.     $19,398,000
    Alaska.........................  Eielson Air Force Base.      $4,352,000
    Arizona........................  Luke Air Force Base....      $3,400,000
    Arkansas.......................  Little Rock Air Force        $1,500,000
                                      Base.
    California.....................  Edwards Air Force Base.     $10,361,000
                                     Travis Air Force Base..      $4,250,000
                                     Vandenberg Air Force        $18,709,000
                                      Base.
    Colorado.......................  Falcon Air Force             $9,601,000
                                      Station.

    [[Page 112 STAT. 2190]]

                                     United States Air Force      $4,413,000
                                      Academy...............
    District of Columbia...........  Bolling Air Force Base.      $2,948,000
    Florida........................  Eglin Air Force Base...     $20,437,000
                                     Eglin Auxiliary Field 9      $3,837,000
                                     MacDill Air Force Base.      $9,808,000
                                     Tyndall Air Force Base.      $3,600,000
    Georgia........................  Robins Air Force Base..     $11,894,000
    Hawaii.........................  Hickam Air Force Base..      $5,890,000
    Idaho..........................  Mountain Home Air Force     $17,897,000
                                      Base..................
    Kansas.........................  McConnell Air Force          $4,450,000
                                      Base.
    Louisiana......................  Barksdale Air Force          $9,300,000
                                      Base.
    Maryland.......................  Andrews Air Force Base.      $4,448,000
    Massachusetts..................  Hanscom Air Force Base.     $10,000,000
    Mississippi....................  Columbus Air Force Base      $5,700,000
                                     Keesler Air Force Base.     $35,526,000
    Montana........................  Malmstrom Air Force          $7,900,000
                                      Base.
    Nevada.........................  Indian Springs Air          $15,013,000
                                      Force Auxiliary Air
                                      Field.................
                                     Nellis Air Force Base..      $6,378,000
    New Jersey.....................  McGuire Air Force Base.      $6,044,000
    New Mexico.....................  Holloman Air Force Base     $11,100,000
                                     Kirtland Air Force Base      $8,574,000
    North Carolina.................  Seymour Johnson Air          $6,100,000
                                      Force Base............
    North Dakota...................  Grand Forks Air Force       $11,486,000
                                      Base.
                                     Minot Air Force Base...      $8,500,000
    Ohio...........................  Wright-Patterson Air        $22,000,000
                                      Force Base............
    Oklahoma.......................  Altus Air Force Base...      $9,300,000
                                     Tinker Air Force Base..     $24,985,000
                                     Vance Air Force Base...      $6,223,000
    South Carolina.................  Charleston Air Force        $24,330,000
                                      Base.
    South Dakota...................  Ellsworth Air Force          $6,500,000
                                      Base.
    Tennessee......................  Arnold Air Force Base..     $11,600,000
    Texas..........................  Dyess Air Force Base...      $4,750,000
                                     Goodfellow Air Force         $7,300,000
                                      Base.
                                     Lackland Air Force Base     $14,930,000
                                     Laughlin Air Force Base      $7,315,000
                                     Randolph Air Force Base      $3,166,000
    Utah...........................  Hill Air Force Base....      $2,600,000
    Washington.....................  Fairchild Air Force         $15,220,000
                                      Base.
                                     McChord Air Force Base.     $51,847,000
                                                             ---------------
                                           Total............    $514,880,000
    ------------------------------------------------------------------------

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

    [[Page 112 STAT. 2191]]

                      Air Force: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      location             Amount
    ------------------------------------------------------------------------
    Germany........................  Spangdahlem Air Base...      $9,501,000
    Korea..........................  Kunsan Air Base........      $5,958,000
                                     Osan Air Base..........      $7,496,000
    Turkey.........................  Incirlik Air Base......      $2,949,000
    United Kingdom.................  Royal Air Force,            $15,838,000
                                      Lakenheath.
                                     Royal Air Force,            $24,960,000
                                      Mildenhall.
                                                             ---------------
                                           Total............     $66,702,000
    ------------------------------------------------------------------------

    SEC. 2302. FAMILY HOUSING.

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

                                                Air Force: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Purpose                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama...............................  Maxwell Air Force Base...  143 Units....................     $16,300,000
    Alaska................................  Eielson Air Force Base...  46 Units.....................     $12,932,000
    California............................  Edwards Air Force Base...  48 Units.....................     $12,580,000
                                            Vandenberg Air Force Base  95 Units.....................     $18,499,000
    Delaware..............................  Dover Air Force Base.....  55 Units.....................      $8,998,000
    Florida...............................  MacDill Air Force Base...  48 Units.....................      $7,609,000
                                            Patrick Air Force Base...  46 Units.....................      $9,692,000
                                            Tyndall Air Force Base...  122 Units....................     $14,500,000
    Mississippi...........................  Columbus Air Force Base..  52 Units.....................      $6,800,000
                                            Keesler Air Force Base...  52 Units.....................      $6,800,000
    Montana...............................  Malmstrom Air Force Base.  50 Units.....................     $10,000,000
    Nebraska..............................  Offutt Air Force Base....  Ancillary Facility...........        $870,000
                                            Offutt Air Force Base....  Ancillary Facility...........        $900,000
                                            Offutt Air Force Base....  90 Units.....................     $12,212,000
    Nevada................................  Nellis Air Force Base....  28 Units.....................      $5,000,000
    New Mexico............................  Kirtland Air Force Base..  37 Units.....................      $6,400,000
    Ohio..................................  Wright-Patterson Air       40 Units.....................      $5,600,000
                                             Force Base..............
    Texas.................................  Dyess Air Force Base.....  64 Units.....................      $9,415,000
                                            Sheppard Air Force Base..  65 Units.....................      $7,000,000

    [[Page 112 STAT. 2192]]

    Washington............................  Fairchild Air Force Base.  Ancillary Facility...........      $1,692,000
                                            Fairchild Air Force Base.  14 Units.....................      $2,300,000
                                                                                                     ---------------
                                                                           Total....................    $176,099,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriations in section 2304(a)(5)(A), the Secretary
    of the Air Force may carry out architectural and engineering services
    and construction design activities with respect to the construction or
    improvement of military family housing units in an amount not to exceed
    $11,342,000.

    SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2304(a)(5)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $104,108,000.

    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1998, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Air Force in the total amount of $1,679,978,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $514,880,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $66,702,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $8,135,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $38,092,000.
                (5) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $291,549,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $785,204,000.

        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2301 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (5) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by--

    [[Page 112 STAT. 2193]]

                (1) $10,584,000, which represents the combination of project
            savings in military family housing construction resulting from
            favorable bids, reduced overhead costs, and cancellations due to
            force structure changes;
                (2) $2,000,000,000, which represents the combination of
            savings in military family housing support resulting from
            favorable bids, reduced overhead costs, and cancellations due to
            force structure changes; and
                (3) $12,000,000, which represents the combination of project
            savings in military construction resulting from favorable bids,
            reduced overhead costs, and cancellations due to force structure
            changes.

                          TITLE XXIV--DEFENSE AGENCIES

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

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

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2404(a)(1), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:

                   Defense Agencies: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      location             Amount
    ------------------------------------------------------------------------
    Chemical Demilitarization......  Aberdeen Proving           $186,350,000
                                      Ground, Maryland......
                                     Newport Army Depot,        $191,550,000
                                      Indiana...............
    Defense Logistics Agency.......  Defense Fuel Support         $3,500,000
                                      Point, Fort Sill,
                                      Oklahoma..............
                                     Defense Fuel Support        $11,020,000
                                      Point, Jacksonville
                                      Annex, Mayport,
                                      Florida...............
                                     Defense Fuel Support        $11,000,000
                                      Point, Jacksonville,
                                      Florida...............
                                     Defense General Supply      $10,500,000
                                      Center, Richmond
                                      (DLA), Virginia.......
                                     Defense Fuel Supply          $5,300,000
                                      Center, Camp Shelby,
                                      Mississippi...........
                                     Defense Fuel Supply         $19,500,000
                                      Center, Elmendorf Air
                                      Force Base, Alaska....
                                     Defense Fuel Supply          $4,100,000
                                      Center, Pope Air Force
                                      Base, North Carolina..
                                     Various Locations......      $1,300,000
    Defense Medical Facilities       Barksdale Air Force          $3,450,000
     Office........................   Base, Louisiana.......
                                     Beale Air Force Base,        $3,500,000
                                      California............
                                     Carlisle Barracks,           $4,678,000
                                      Pennsylvania..........
                                     Cheatham Annex,             $11,300,000
                                      Virginia.

    [[Page 112 STAT. 2194]]

                                     Edwards Air Force Base,      $6,000,000
                                      California............
                                     Eglin Air Force Base,        $9,200,000
                                      Florida.
                                     Fort Bragg, North            $6,500,000
                                      Carolina.
                                     Fort Hood, Texas.......     $14,100,000
                                     Fort Stewart/Hunter         $10,400,000
                                      Army Air Field,
                                      Georgia...............
                                     Grand Forks Air Force        $5,600,000
                                      Base, North Dakota....
                                     Holloman Air Force           $1,300,000
                                      Base, New Mexico......
                                     Keesler Air Force Base,        $700,000
                                      Mississippi...........
                                     Marine Corps Air             $6,300,000
                                      Station, Camp
                                      Pendleton, California.
                                     McChord Air Force Base,     $20,000,000
                                      Washington............
                                     Moody Air Force Base,       $11,000,000
                                      Georgia...............
                                     Naval Air Station,          $25,400,000
                                      Pensacola, Florida....
                                     Naval Hospital,             $28,000,000
                                      Bremerton, Washington.
                                     Naval Hospital, Great        $7,100,000
                                      Lakes, Illinois.......
                                     Naval Station, San           $1,350,000
                                      Diego, California.....
                                     Naval Submarine Base,        $5,700,000
                                      Bangor, Washington....
                                     Travis Air Force Base,       $1,700,000
                                      California............
    Defense Education Activity.....  Marine Corps Base, Camp     $16,900,000
                                      LeJeune, North
                                      Carolina..............
                                     United States Military       $2,840,000
                                      Academy, West Point,
                                      New York..............
    National Security Agency.......  Fort Meade, Maryland...        $668,000
    Special Operations Command.....  Eglin Auxiliary Field        $7,310,000
                                      3, Florida............
                                     Eglin Auxiliary Field        $2,400,000
                                      9, Florida............
                                     Fort Campbell, Kentucky     $15,000,000
                                     MacDill Air Force Base,      $8,400,000
                                      Florida...............
                                     Naval Amphibious Base,       $3,600,000
                                      Coronado, California..
                                     Stennis Space Center,        $5,500,000
                                      Mississippi...........
                                                             ---------------
                                             Total..........    $690,016,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2404(a)(2), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations and locations outside the
    United States, and in the amounts, set forth in the following table:

                   Defense Agencies: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      location             Amount
    ------------------------------------------------------------------------
    Defense Logistics Agency.......  Lajes Field, Azores,         $7,700,000
                                      Portugal..............
    Defense Medical Facilities       Naval Air Station,           $5,300,000
     Office........................   Sigonella, Italy......

    [[Page 112 STAT. 2195]]

                                     Royal Air Force,            $10,800,000
                                      Lakenheath, United
                                      Kingdom...............
    Defense Education Activity.....  Fort Buchanan, Puerto        $8,805,000
                                      Rico..................
                                     Naval Activities, Guam.     $13,100,000
    Special Operations Command.....  Naval Station,               $9,600,000
                                      Roosevelt Roads,
                                      Puerto Rico...........
                                                             ---------------
                                             Total..........     $55,305,000
    ------------------------------------------------------------------------

    SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2404(a)(11)(A), the Secretary of Defense may improve existing
    military family housing units in an amount not to exceed $345,000.

    SEC. 2403. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2404(a)(9), the Secretary of Defense may carry
    out energy conservation projects under section 2865 of title 10, United
    States Code.

    SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1998, for military
    construction, land acquisition, and military family housing functions of
    the Department of Defense (other than the military departments) in the
    total amount of $2,223,260,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $369,966,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(a), $55,305,000.
                (3) For construction of the Ammunition Demilitarization
            Facility, Pine Bluff Arsenal, Arkansas, authorized by section
            2401 of the Military Construction Authorization Act for Fiscal
            Year 1995 (division B of Public Law 103-337; 108 Stat. 3040), as
            amended by section 2407 of the Military Construction
            Authorization Act for Fiscal Year 1996 (division B of Public Law
            104-106; 110 Stat. 539), section 2408 of the Military
            Construction Authorization Act for Fiscal Year 1998 (division B
            of Public Law 105-85; 111 Stat. 1982), and section 2406 of this
            Act, $16,500,000.
                (4) For construction of the Ammunition Demilitarization
            Facility, Umatilla Army Depot, Oregon, authorized by section
            2401 of the Military Construction Authorization Act for Fiscal
            Year 1995, as amended by section 2407 of the Military
            Construction Authorization Act for Fiscal Year 1996, section
            2408 of the Military Construction Authorization Act for Fiscal
            Year 1998, and section 2406 of this Act, $50,950,000.
                (5) For military construction projects at Portsmouth Naval
            Hospital, Virginia, hospital replacement, authorized by section
            2401(a) of the Military Construction Authorization Act for
            Fiscal Years 1990 and 1991 (division B of Public Law 101-189;

    [[Page 112 STAT. 2196]]

            106 Stat. 1640), as amended by section 2407 of this Act,
            $17,954,000.
                (6) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $13,394,000.
                (7) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $4,890,000.
                (8) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $41,005,000.
                (9) For energy conservation projects authorized by section
            2403, $46,950,000.
                (10) For base closure and realignment activities as
            authorized by the Defense Base Closure and Realignment Act of
            1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
            note), $1,630,902,000.
                (11) For military family housing functions:
                        (A) For improvement of military family housing and
                    facilities, $345,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $36,899,000 of which not more than
                    $31,139,000 may be obligated or expended for the leasing
                    of military family housing units worldwide.
                        (C) For credit to the Department of Defense Family
                    Housing Improvement Fund established by section
                    2883(a)(1) of title 10, United States Code, $2,000,000.

        (b) Limitation of Total Cost of Construction Projects.--
    Notwithstanding the cost variation authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed--
                (1) the total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a);
                (2) $162,050,000 (the balance of the amount authorized under
            section 2401(a) for the construction of the Ammunition
            Demilitarization Facility at Newport Army Depot, Indiana); and
                (3) $158,000,000 (the balance of the amount authorized under
            section 2401(a) for the construction of the Ammunition
            Demilitarization Facility at Aberdeen Proving Ground, Maryland).

        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (11) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced by
    $63,800,000 (of which $50,500,000 represents savings from military
    construction for chemical demilitarization), which represents the
    combination of project savings in military construction resulting from
    favorable bids, reduced overhead costs, and cancellations due to force
    structure changes.

    SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF APPROPRIATIONS
                FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.

        (a) Authorization of Appropriations.--Section 2406(a) of the
    Military Construction Authorization Act for Fiscal Year 1997 (division B
    of Public Law 104-201; 110 Stat. 2778) is amended--

    [[Page 112 STAT. 2197]]

                (1) by striking out ``$3,379,703,000'' and inserting in lieu
            thereof ``$3,374,703,000''; and
                (2) in paragraph (14), by striking out subparagraph (D).

        (b) Credit and Use of Funds.--Section 2404 of that Act (110 Stat.
    2777) is amended--
                (1) in subsection (a)--
                        (A) by striking out ``(1)'' before ``Of ''; and
                        (B) by striking out paragraph (2); and
                (2) in subsection (b)--
                        (A) by striking out ``(1)'' before ``The'';
                        (B) by striking out ``subsection (a)(1)'' and
                    inserting in lieu thereof ``subsection (a)''; and
                        (C) by striking out paragraph (2).

    SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
                1995 PROJECTS.

        The table in section 2401 of the Military Construction Authorization
    Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat.
    3040), as amended by section 2407 of the Military Construction
    Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
    106; 110 Stat. 539) and section 2408 of the Military Construction
    Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85;
    111 Stat. 1982), under the agency heading relating to Chemical Weapons
    and Munitions Destruction, is amended--
                (1) in the item relating to Pine Bluff Arsenal, Arkansas, by
            striking out ``$134,000,000'' in the amount column and inserting
            in lieu thereof ``$154,400,000''; and
                (2) in the item relating to Umatilla Army Depot, Oregon, by
            striking out ``$187,000,000'' in the amount column and inserting
            in lieu thereof ``$193,377,000''.

    SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1990
                PROJECT.

        (a) Increase.--The table in section 2401(a) of the Military
    Construction Authorization Act for Fiscal Years 1990 and 1991 (division
    B of Public Law 100-189; 103 Stat. 1640) is amended in the item relating
    to Portsmouth Naval Hospital, Virginia, by striking out ``$330,000,000''
    and inserting in lieu thereof ``$351,354,000''.
        (b) Conforming Amendment.--Section 2405(b)(2) of that Act (103 Stat.
    1642) is amended by striking out ``$321,500,000'' and inserting in lieu
    thereof ``$342,854,000''.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

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

        The Secretary of Defense may make contributions for the North
    Atlantic Treaty Organization Security Investment program as provided in
    section 2806 of title 10, United States Code, in an amount

    [[Page 112 STAT. 2198]]

    not to exceed the sum of the amount authorized to be appropriated for
    this purpose in section 2502 and the amount collected from the North
    Atlantic Treaty Organization as a result of construction previously
    financed by the United States.

    SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

        Funds are hereby authorized to be appropriated for fiscal years
    beginning after September 30, 1998, for contributions by the Secretary
    of Defense under section 2806 of title 10, United States Code, for the
    share of the United States of the cost of projects for the North
    Atlantic Treaty Organization Security Investment program authorized by
    section 2501, in the amount of $154,000,000.

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

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

        (a) Authorization of Appropriations.--There are authorized to be
    appropriated for fiscal years beginning after September 30, 1998, for
    the costs of acquisition, architectural and engineering services, and
    construction of facilities for the Guard and Reserve Forces, and for
    contributions therefor, under chapter 1803 of title 10, United States
    Code (including the cost of acquisition of land for those facilities),
    the following amounts:
                (1) For the Department of the Army--
                        (A) for the Army National Guard of the United
                    States, $142,403,000; and
                        (B) for the Army Reserve, $102,119,000.
                (2) For the Department of the Navy, for the Naval and Marine
            Corps Reserve, $31,621,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United States,
                    $169,801,000; and
                        (B) for the Air Force Reserve, $34,371,000.

        (b) Adjustment.--(1) The amount authorized to be appropriated
    pursuant to subsection (a)(1)(A) is reduced by $2,000,000, which
    represents the combination of project savings in military construction
    resulting from favorable bids, reduced overhead costs, and cancellations
    due to force structure changes.
        (2) The amount authorized to be appropriated pursuant to subsection
    (a)(3)(A) is reduced by $4,000,000, which represents the combination of
    project savings in military construction resulting from favorable bids,
    reduced overhead costs, and cancellations due to force structure
    changes.

    SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998
                PROJECT.

        Section 2603 of the Military Construction Authorization Act for
    Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1983) is
    amended to read as follows:

    [[Page 112 STAT. 2199]]

    ``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

        ``With regard to the military construction project for the Army
    Reserve concerning construction of a reserve center and organizational
    maintenance shop at an appropriate site in, or in the vicinity of, Salt
    Lake City, Utah, to be carried out using funds appropriated pursuant to
    the authorization of appropriations in section 2601(a)(1)(B), the
    Secretary of the Army shall enter into an agreement with the State of
    Utah under which the State agrees to provide financial or in-kind
    contributions in connection with the project.''.

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

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

        (a) Expiration of Authorizations After Three Years.--Except as
    provided in subsection (b), all authorizations contained in titles XXI
    through XXVI for military construction projects, land acquisition,
    family housing projects and facilities, and contributions to the North
    Atlantic Treaty Organization Security Investment program (and
    authorizations of appropriations therefor) shall expire on the later
    of--
                (1) October 1, 2001; or
                (2) the date of enactment of an Act authorizing funds for
            military construction for fiscal year 2002.

        (b) Exception.--Subsection (a) shall not apply to authorizations for
    military construction projects, land acquisition, family housing
    projects and facilities, and contributions to the North Atlantic Treaty
    Organization Security Investment program (and authorizations of
    appropriations therefor), for which appropriated funds have been
    obligated before the later of--
                (1) October 1, 2001; or
                (2) the date of enactment of an Act authorizing funds for
            fiscal year 2002 for military construction projects, land
            acquisition, family housing projects and facilities, or
            contributions to the North Atlantic Treaty Organization Security
            Investment program.

    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1996
                PROJECTS.

        (a) Extensions.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1996 (division B of
    Public Law 104-106; 110 Stat. 541), authorizations for the projects set
    forth in the tables in subsection (b), as provided in section 2201,
    2202, 2302, or 2601 of that Act, shall remain in effect until October 1,
    1999, or the date of enactment of an Act authorizing funds for military
    construction for fiscal year 2000, whichever is later.

    [[Page 112 STAT. 2200]]

        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                     Navy: Extension of 1996 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Puerto Rico...........................  Naval Station Roosevelt    Housing Office...............        $710,000
                                             Roads...................
    California............................  Camp Pendleton...........  Family Housing Construction       $20,000,000
                                                                        (138 units).................
    ----------------------------------------------------------------------------------------------------------------

                                   Air Force: Extension of 1996 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Texas.................................  Lackland Air Force Base..  Family Housing (67 units)....      $6,200,000
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1996 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Mississippi...........................  Camp Shelby..............  Multipurpose Range Complex         $5,000,000
                                                                        (Phase I)...................
    Missouri..............................  National Guard Training    Multipurpose Range...........      $2,236,000
                                             Site, Jefferson City....
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1995 (division B of
    Public Law 103-337; 108 Stat. 3046), the authorization for the project
    set forth in the table in subsection (b), as provided in section 2201 of
    that Act and extended by section 2702 of the Military Construction
    Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85;
    111 Stat. 1985), shall remain in effect until October 1, 1999, or the
    date of enactment of an Act authorizing funds for military construction
    for fiscal year 2000, whichever is later.
        (b) Table.--The table referred to in subsection (a) is as follows:

                                      Navy: Extension of 1995 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Maryland..............................  Indian Head Naval Surface  Denitrification/Acid Mixing        $6,400,000
                                             Warfare Center..........   Facility....................
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2704. EFFECTIVE DATE.

        Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on
    the later of--
                (1) October 1, 1998; or

    [[Page 112 STAT. 2201]]

                (2) the date of the enactment of this Act.

                        TITLE XXVIII--GENERAL PROVISIONS

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

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

             Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Defense Base Closure and Realignment

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

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

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

                            Part II--Navy Conveyances

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

                         Part III--Air Force Conveyances

    Sec. 2861. Modification of land conveyance, Eglin Air Force Base,
               Florida.

    [[Page 112 STAT. 2202]]

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

                            Subtitle E--Other Matters

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

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

    SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND CONSTRUCTION
                DESIGN.

        (a) Increase in Threshold for Notice to Congress.--
    Subsection (b) of section 2807 of title 10, United States Code, is
    amended by striking out ``$300,000'' and inserting in lieu thereof
    ``$500,000''.
        (b) Availability of Appropriations.--Subsection (d) of that section
    is amended by striking out ``study, planning, design, architectural, and
    engineering services'' and inserting in lieu thereof ``architectural and
    engineering services and construction design''.

    SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.

        (a) Alternative Maximum Unit Amounts.--Section 2828(e) of title 10,
    United States Code, is amended--
                (1) in paragraph (2), by inserting, ``, and the Secretary of
            the Army may lease not more than 500 units of family housing in
            Italy,'' after ``family housing in Italy'';
                (2) by redesignating paragraphs (3) and (4) as paragraphs
            (4) and (5), respectively; and
                (3) by inserting after paragraph (2) the following new
            paragraph (3):

        ``(3) In addition to the 450 units of family housing referred to in
    paragraph (1) for which the maximum lease amount is $25,000 per unit per
    year, the Secretary of the Army may lease not more than 800 units of
    family housing in Korea subject to that maximum lease amount.''.
        (b) Conforming Amendment.--Paragraph (4) of that section, as
    redesignated by subsection (a)(2) of this section, is amended by
    striking out ``and (2)'' and inserting in lieu thereof ``, (2), and
    (3)''.

    SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER
                ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF
                MILITARY HOUSING.

        Section 2871(1) of title 10, United States Code, is amended by
    inserting after ``including'' the following: ``facilities to provide or
    support elementary or secondary education,''.

    [[Page 112 STAT. 2203]]

    SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT EIELSON AIR
                FORCE BASE, ALASKA.

        (a) Authority To Purchase.--The Secretary of the Air Force may
    purchase the entire interest of the developer in the military family
    housing project at Eielson Air Force Base, Alaska, described in
    subsection (b) if the Secretary determines that the purchase is in the
    best economic interests of the Air Force.
        (b) Description of Project.--The military family housing project
    referred to in this section is the 366-unit military family housing
    project at Eielson Air Force Base that was constructed by the developer
    and is being leased by the Secretary under the authority of former
    subsection (g) of section 2828 of title 10, United States Code (now
    section 2835 of such title), as added by section 801 of the Military
    Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 782).
        (c) Purchase Price.--The purchase price to be paid by the Secretary
    under this section for the interest of the developer in the military
    family housing project may not exceed an amount equal to the amount of
    the outstanding indebtedness of the developer to the lender for the
    project that would have remained at the time of the purchase under this
    section if the developer had paid down its indebtedness to the lender
    for the project in accordance with the original debt instruments for the
    project.
        (d) Time for Purchase.--(1) Subject to paragraph (2), the Secretary
    may elect to make the purchase authorized by subsection (a) at any time
    during or after the term of the lease for the military family housing
    project.
        (2) The Secretary may not make the purchase until 30 days after the
    date on which the Secretary notifies the congressional defense
    committees of the Secretary's election to make the purchase under
    paragraph (1).

    SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR UNACCOMPANIED
                MEMBERS.

        (a) Report Required.--(1) Not later than April 1, 1999, the
    Secretary of Defense shall submit to Congress a report on--
                (A) the plans of each of the military departments to improve
            the condition, suitability, and availability of housing for
            members of the Armed Forces who are unaccompanied by dependents;
            and
                (B) the costs associated with the implementation of the
            plans.

        (2) The Secretary of Defense shall prepare the report in
    consultation with the Secretaries of the military departments.
        (b) Elements.--The report under subsection (a) shall include the
    following:
                (1) The plans and programs of each of the military
            departments to improve housing on military installations for
            unaccompanied members of the Armed Forces, including an
            assessment of the requirement, a schedule to implement such
            plans and programs, and an explanation of the standards used to
            determine the adequacy, suitability, and availability of housing
            outside of military installations.
                (2) A justification for the initiative to build single
            occupancy rooms with a shared bath (commonly known as the ``1
            Plus 1 Initiative''), including--

    [[Page 112 STAT. 2204]]

                        (A) a description of the manner in which the
                    initiative is designed to enhance the quality of life
                    for enlisted members and the retention of such members
                    in adequate numbers; and
                        (B) an assessment of the analysis and data used in
                    the justification to implement the initiative.
                (3) The cost for each military department of implementing
            the initiative, including the amount of funds, by fiscal year,
            authorized and appropriated for military construction and real
            property maintenance obligated or expended on the improvement of
            military housing for unaccompanied members beginning on October
            1, 1996, and the amount of funds required to be expended to
            ensure the suitability of such housing for unaccompanied
            members.
                (4) An explanation of the difference in cost between--
                        (A) upgrading existing military housing to the
                    standard proposed in the initiative; and
                        (B) rehabilitating such housing within existing
                    standards.
                (5) An assessment of the viability and utility of the
            authorities provided by subchapter IV of chapter 169 of title
            10, United States Code, to contribute to the improvement of the
            condition, suitability, and availability of housing for
            unaccompanied members, especially members in junior grades.
                (6) The views of the Chief of Staff of the Army, the Chief
            of Naval Operations, the Chief of Staff of the Air Force, the
            Commandant of the Marine Corps, the Commandant of the Coast
            Guard, and each of the senior enlisted members of the Armed
            Forces regarding the initiative referred to in paragraph (2) and
            regarding any alternatives to the initiative having the
            potential of enhancing the quality of life for unaccompanied
            members, improving the readiness of the Armed Forces, and
            improving the retention of enlisted members in adequate numbers.

             Subtitle B--Real Property and Facilities Administration

    SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING
                REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND OTHER
                OPERATIONS.

        (a) Exceptions.--Section 2662 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(g) Exceptions for Transactions for War and Certain Emergency and
    Other Operations.--(1) The reporting requirement set forth in subsection
    (a) shall not apply with respect to a real property transaction
    otherwise covered by that subsection, and the reporting requirement set
    forth in subsection (e) shall not apply with respect to a real property
    transaction otherwise covered by that subsection, if the Secretary
    concerned determines that the transaction is made as a result of any of
    the following:
                ``(A) A declaration of war.
                ``(B) A declaration of a national emergency by the President
            pursuant to the National Emergencies Act (50 U.S.C. 1601 et
            seq.).

    [[Page 112 STAT. 2205]]

                ``(C) A declaration of an emergency or major disaster
            pursuant to the Robert T. Stafford Disaster Relief and Emergency
            Assistance Act (42 U.S.C. 5121 et seq.).
                ``(D) The use of the militia or the armed forces after a
            proclamation to disperse under section 334 of this title.
                ``(E) A contingency operation.

        ``(2) The reporting requirement set forth in subsection (a) shall
    not apply with respect to a real property transaction otherwise covered
    by that subsection if the Secretary concerned determines that--
                ``(A) an event listed in paragraph (1) is imminent; and
                ``(B) the transaction is necessary for purposes of
            preparation for such event.

        ``(3) Not later than 30 days after entering into a real property
    transaction covered by paragraph (1) or (2), the Secretary concerned
    shall submit to the committees named in subsection (a) a report on the
    transaction. The report shall set forth any facts or information which
    would otherwise have been submitted in a report on the transaction under
    subsection (a) or (e), as the case may be, but for the operation of
    paragraph (1) or (2).''.
        (b) Stylistic Amendments.--That section is further amended--
                (1) in subsection (a), by inserting ``General Notice and
            Wait Requirements.--'' after ``(a)'';
                (2) in subsection (b), by inserting ``Annual Reports on
            Certain Minor Transactions.--'' after ``(b)'';
                (3) in subsection (c), by inserting ``Geographic Scope;
            Excepted Projects.--'' after ``(c)'';
                (4) in subsection (d), by inserting ``Statements of
            Compliance in Transaction Instruments.--'' after ``(d)'';
                (5) in subsection (e), by inserting ``Notice and Wait
            Regarding Leases of Space for DoD by GSA.--'' after ``(e)''; and
                (6) in subsection (f ), by inserting ``Reports on
            Transactions Involving Intelligence Components.--'' after ``(f
            )''.

    SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER
                FEDERAL AGENCY.

        (a) Restoration as Term of Agreement.--Section 2691 of title 10,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(c)(1) As a condition of any lease, permit, license, or other
    grant of access entered into by the Secretary of a military department
    with another Federal agency authorizing the agency to use lands under
    the control of the Secretary, the Secretary may require the agency to
    agree to remove any improvements and to take any other action necessary
    in the judgment of the Secretary to restore the land used by the agency
    to its condition before its use by the agency.
        ``(2) In lieu of performing any removal or restoration work under
    paragraph (1), a Federal agency may elect, with the consent of the
    Secretary, to reimburse the Secretary for the costs incurred by the
    military department in performing such removal or restoration work.''.
        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    [[Page 112 STAT. 2206]]

    ``Sec. 2691. Restoration of land used by permit or lease''.

        (2) The table of sections at the beginning of chapter 159 of title
    10, United States Code, is amended by striking the item relating to
    section 2691 and inserting in lieu thereof the following new item:

    ``2691. Restoration of land used by permit or lease.''.

    SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY INSTALLATIONS FOR
                DISABLED VETERANS, MILITARY DEPENDENTS WITH DISABILITIES,
                AND OTHER PERSONS WITH DISABILITIES.

        (a) Access Enhancement.--Section 103 of the Sikes Act (16 U.S.C.
    670c) is amended by adding at the end the following new subsections:
        ``(b) Access for Disabled Veterans, Military Dependents With
    Disabilities, and Other Persons With Disabilities.--(1) In developing
    facilities and conducting programs for public outdoor recreation at
    military installations, consistent with the primary military mission of
    the installations, the Secretary of Defense shall ensure, to the extent
    reasonably practicable, that outdoor recreation opportunities (including
    fishing, hunting, trapping, wildlife viewing, boating, and camping) made
    available to the public also provide access for persons described in
    paragraph (2) when topographic, vegetative, and water resources allow
    access for such persons without substantial modification to the natural
    environment.
        ``(2) Persons referred to in paragraph (1) are the following:
                ``(A) Disabled veterans.
                ``(B) Military dependents with disabilities.
                ``(C) Other persons with disabilities, when access to a
            military installation for such persons and other civilians is
            not otherwise restricted.

        ``(3) The Secretary of Defense shall carry out this subsection in
    consultation with the Secretary of Veterans Affairs, national service,
    military, and veterans organizations, and sporting organizations in the
    private sector that participate in outdoor recreation projects for
    persons described in paragraph (2).
        ``(c) Acceptance of Donations.--In connection with the facilities
    and programs for public outdoor recreation at military installations, in
    particular the requirement under subsection (b) to provide access for
    persons described in paragraph (2) of such subsection, the Secretary of
    Defense may accept--
                ``(1) the voluntary services of individuals and
            organizations; and
                ``(2) donations of property, whether real or personal.

        ``(d) Treatment of Volunteers.--A volunteer under subsection (c)
    shall not be considered to be a Federal employee and shall not be
    subject to the provisions of law relating to Federal employment,
    including those relating to hours of work, rates of compensation, leave,
    unemployment compensation, and Federal employee benefits, except that--
                ``(1) for the purposes of the tort claims provisions of
            chapter 171 of title 28, United States Code, the volunteer shall
            be considered to be a Federal employee; and
                ``(2) for the purposes of subchapter I of chapter 81 of
            title 5, United States Code, relating to compensation to Federal
            employees for work injuries, the volunteer shall be considered
            to be an employee, as defined in section 8101(1)(B) of title

    [[Page 112 STAT. 2207]]

            5, United States Code, and the provisions of such subchapter
            shall apply.''.

        (b) Conforming Amendment.--Such section is further amended by
    striking out ``Sec. 103.'' and inserting in lieu thereof the following:

    ``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

        ``(a) Program Authorized.--''.

    SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF NONEXCESS
                MILITARY PROPERTY.

        (a) Report Required.--Not later than March 15, 1999, the Secretary
    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report regarding the authority of the military departments and Defense
    Agencies to lease to the private sector nonexcess real and personal
    property. The Secretary shall prepare the report in consultation with
    the Secretaries of the military departments and the Director of the
    Office of Management and Budget.
        (b) Required Elements of Report.--The report shall set forth the
    following:
                (1) The number and purpose of all leases entered into under
            sections 2667 and 2667a of title 10, United States Code, other
            than leases under section 2667(f ) of that title, during the 5-
            year period ending on the date of the enactment of this Act.
                (2) The types and amounts of payments received under the
            leases specified in paragraph (1) and the costs, if any,
            foregone as a result of the leases.
                (3) An assessment of the positive and negative aspects of
            leasing real property and surplus capacity at military
            installations to the private sector, including the potential
            effect of the use of the leases on force protection and the
            military functions of the installations.
                (4) An assessment of the current efforts of the Department
            of Defense to identify for the private sector any surplus
            capacity at military installations that could be leased or
            otherwise used by the private sector.
                (5) An assessment of the proposal of the Secretary of the
            Air Force to reduce infrastructure costs at Brooks Air Force
            Base, Texas, using the authority provided in section 2667 of
            title 10, United States Code, and the proposal of the Secretary
            of the Navy regarding the potential for development of Ford
            Island as part of Naval Complex, Pearl Harbor, Hawaii.
                (6) An assessment (including an economic analysis) of the
            ability of the military departments and Defense Agencies to
            reduce the quantity of real property leased by them through the
            relocation of activities located in such leased space to
            property of a military installation, or another Federal agency,
            that is unutilized or underutilized, while also lowering
            operational and maintenance costs and minimizing the need for
            new construction.

        (c) Additional Elements of Report.--In the event that the Secretary
    of Defense considers the authority under section 2667 or 2667a of title
    10, United States Code, to be insufficient, the Secretary shall also
    include in the report--

    [[Page 112 STAT. 2208]]

                (1) a proposal for authority to conduct a pilot project
            based on the assessment made under subsection (b)(5) or for such
            general legislative authority as the Secretary considers
            appropriate to enhance the ability of the Department of Defense
            to utilize surplus capacity at military installations in order
            to improve military readiness, achieve cost savings with respect
            to such installations, or decrease the cost of operating such
            installations;
                (2) an estimate of the income that could accrue to the
            Department of Defense as a result of the implementation of
            enhanced authority proposed under paragraph (1) during the 5-
            year period beginning on the date of such implementation; and
                (3) an assessment of the extent to which any such income
            should be reserved for the use of the installations exercising
            such authority and of the extent to which installations would be
            likely to enter into such leases if they cannot retain such
            income.

    SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM CONVEYANCE
                AUTHORITY.

        Not later than March 1, 1999, the Secretary of Defense, in
    consultation with the Secretaries of the military departments, shall
    submit to Congress a report containing--
                (1) the criteria to be used by the Secretary of a military
            department to select utility systems, and related improvements,
            easements, and rights-of-way, under the jurisdiction of the
            Secretary, for conveyance to a municipal, private, regional,
            district, or cooperative utility company or other entity under
            the authority of section 2688 of title 10, United States Code;
                (2) an assessment of the need to include, as part of the
            conveyance authority under such section, authority for the
            Secretary to convey real property associated with a utility
            system conveyed under such section; and
                (3) a description of the manner in which the Secretary will
            ensure that any conveyance under such section does not adversely
            affect the national security of the United States.

                Subtitle C--Defense Base Closure and Realignment

    SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES AT
                INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE CLOSURE
                LAWS.

        Section 2667(f )(1) of title 10, United States Code, is amended by
    inserting after ``subsection (a)(3)'' the following: ``or the Federal
    Property and Administrative Services Act of 1949 (to the extent such Act
    is inconsistent with this subsection)''.

    SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING PROHIBITION AGAINST
                CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION, LONG
                BEACH, CALIFORNIA.

        Section 2826 of the Military Construction Authorization Act for
    Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2001) is
    amended by striking out subsection (e).

    [[Page 112 STAT. 2209]]

    SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN
                CONNECTION WITH MCCLELLAN AIR FORCE BASE, CALIFORNIA.

        (a) Source of Payment.--Notwithstanding subsection (b) of section
    2906 of the Defense Base Closure and Realignment Act of 1990 (part A of
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of
    Defense may use amounts in the Department of Defense Base Closure
    Account 1990 established under subsection (a) of such section to pay
    stipulated penalties assessed under the Comprehensive Environmental
    Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
    seq.) against McClellan Air Force Base, California.
        (b) Amount of Payment.--The amount expended under the authority of
    subsection (a) may not exceed $15,000.

                          Subtitle D--Land Conveyances

                            PART I--ARMY CONVEYANCES

    SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE CENTER,
                YOUNGSTOWN, OHIO.

        Section 2861(b) of the Military Construction Authorization Act for
    Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 573) is
    amended by striking out ``retain'' and all that follows through the
    period at the end and inserting in lieu thereof ``develop the parcel for
    educational purposes.''.

    SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER KENNEBEC
                ARSENAL, AUGUSTA, MAINE.

        (a) Authority To Release.--The Secretary of the Army may release,
    without consideration, all right, title, and interest of the United
    States in and to the real property described in subsection (b).
        (b) Covered Property.--The real property referred to in subsection
    (a) is the parcel of real property consisting of approximately 40 acres
    located in Augusta, Maine, and formerly known as the Kennebec Arsenal,
    which parcel was conveyed by the Secretary of War to the State of Maine
    under the provisions of the Act entitled ``An Act Authorizing the
    Secretary of War to convey the Kennebec Arsenal property, situated in
    Augusta, Maine, to the State of Maine for public purposes'', approved
    March 3, 1905 (33 Stat. 1270), as amended by section 771 of the
    Department of Defense Appropriations Act, 1981 (Public Law 96-527; 94
    Stat. 3093).
        (c) Instrument of Release.--The Secretary of the Army shall execute
    and file in the appropriate office a deed of release, amended deed, or
    other appropriate instrument effectuating the release of interests
    authorized by this section.

    SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL PROPERTY,
                FORMER REDSTONE ARMY ARSENAL PROPERTY, ALABAMA.

        (a) Release Authorized.--The Secretary of the Army may release,
    without consideration and to such extent as the Secretary considers
    appropriate to protect the interests of the United States, the
    reversionary interests of the United States in the real property
    described in subsection (b), which were retained by the United States
    when the property was conveyed to the Alabama Space

    [[Page 112 STAT. 2210]]

    Science Exhibit Commission, an agency of the State of Alabama. The
    release shall be executed in the manner provided in this section.
        (b) Description of Property.--The real property referred to in this
    section is the real property conveyed to the Alabama Space Science
    Exhibit Commission under the authority of the following provisions of
    law:
                (1) The first section of Public Law 90-276 (82 Stat. 68).
                (2) Section 813 of the Military Construction Authorization
            Act, 1980 (Public Law 96-125; 93 Stat. 952).
                (3) Section 813 of the Military Construction Authorization
            Act, 1984 (Public Law 98-115; 97 Stat. 790).

        (c) Release, Waiver, or Conveyance of Other Rights, Terms, and
    Conditions.--As part of the release under subsection (a), the Secretary
    may release, waive, or convey, without consideration and to such extent
    as the Secretary considers appropriate to protect the interests of the
    United States--
                (1) any and all other rights retained by the United States
            in and to the real property described in subsection (b) when the
            property was conveyed to the Alabama Space Science Exhibit
            Commission; and
                (2) any and all terms and conditions and restrictions on the
            use of the real property imposed as part of the conveyances
            described in subsection (b).

        (d) Conditions on Release, Waiver, or Conveyance.--(1) The Secretary
    may execute the release under subsection (a) or a release, waiver, or
    conveyance under subsection (c) only after--
                (A) the Secretary approves of the master plan prepared by
            the Alabama Space Science Exhibit Commission, as such plan may
            exist or be revised from time to time, for development of the
            real property described in subsection (b); and
                (B) the installation commander at Redstone Arsenal, Alabama,
            certifies to the Secretary that the release, waiver, or
            conveyance is consistent with the master plan.

        (2) A new facility or structure may not be constructed on the real
    property described in subsection (b) unless the facility or structure is
    included in the master plan, which has been approved and certified as
    provided in paragraph (1).
        (e) Instrument of Release, Waiver, or Conveyance.--In making a
    release, waiver, or conveyance authorized by this section, the Secretary
    shall execute and file in the appropriate office or offices a deed of
    release, amended deed, or other appropriate instrument effectuating the
    release, waiver, or conveyance.
        (f ) Effect of Release.--Except as provided in subsection (g), upon
    release of any reversionary interest under this section, the right,
    title, and interest of the Alabama Space Science Exhibit Commission in
    and to the real property described in subsection (b) shall, to the
    extent of the release, no longer be subject to the conditions prescribed
    in the provisions of law specified in such subsection. Except as
    provided in subsection (g), the Alabama Space Science Exhibit Commission
    may use the real property for any such purpose or purposes as it
    considers appropriate consistent with the master plan approved and
    certified as provided in subsection (d), and the real property may be
    conveyed by the Alabama Space Science Exhibit Commission without
    restriction and unencumbered by any claims or rights of the United
    States with respect to the property, subject to such rights, terms, and
    conditions of the United States previously imposed on the real property
    and

    [[Page 112 STAT. 2211]]

    not released, waived, or conveyed by the Secretary under subsection (c).
        (g) Exceptions.--(1) Conveyance of the drainage and utility easement
    reserved to the United States pursuant to section 813(b)(3) of the
    Military Construction Authorization Act, 1984 (Public Law 98-115; 97
    Stat. 791), is not authorized under this section.
        (2) In no event may title to any portion of the real property
    described in subsection (b) be conveyed by the Alabama Space Science
    Exhibit Commission or any future deed holder of the real property to any
    person other than an agency, instrumentality, political subdivision,
    municipal corporation, or public corporation of the State of Alabama.
    Any deed conveying title to any portion of the real property described
    in subsection (b) shall restrict the further use of the conveyed
    property to purposes and uses consistent with the master plan approved
    and certified as provided in subsection (d), unless otherwise approved
    by the Secretary.
        (3) Paragraph (2) does not prevent the Alabama Space Science Exhibit
    Commission or any future deed holder of the real property described in
    subsection (b) from giving a mortgage with respect to any portion of the
    real property to any person, except that any such mortgage shall provide
    that the further use of the real property shall be restricted to
    purposes and uses consistent with the master plan approved and certified
    as provided in subsection (d), unless otherwise approved by the
    Secretary.

    SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY AMMUNITION
                PLANT, TEXAS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey all
    right, title, and interest of the United States in and to any utility
    system, or part thereof, including any real property associated with
    such system, at the Lone Star Army Ammunition Plant, Texas, to the
    redevelopment authority for the Red River Army Depot, Texas, in
    conjunction with the disposal of property at the Depot under the Defense
    Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
    Law 101-510; 10 U.S.C. 2687 note).
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the redevelopment authority shall pay to the United
    States an amount equal to the fair market value of the conveyed utility
    system and any real property conveyed as part of the conveyance, as
    determined by an independent appraisal satisfactory to the Secretary and
    paid for by the redevelopment authority.
        (c) Rule of Construction.--Nothing in subsection (a) may be
    construed to prohibit or otherwise limit the Secretary from conveying
    any utility system referred to in that subsection under any other
    provision of law, including section 2688 of title 10, United States
    Code.
        (d) Utility System Defined.--In this section, the term ``utility
    system'' has the meaning given that term in section 2688(g) of title 10,
    United States Code.

    SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, ROCKY
                MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF ACQUISITION OF
                PERPETUAL CONTRACTS FOR WATER.

        (a) Conveyance Authorized.--Subject to subsection (c), the Secretary
    of the Army may convey any and all interest of the United States in the
    water rights and related rights at Rocky

    [[Page 112 STAT. 2212]]

    Mountain Arsenal, Colorado, described in subsection (b) to the City and
    County of Denver, Colorado, acting through its Board of Water
    Commissioners.
        (b) Covered Water Rights and Related Rights.--The water rights and
    related rights authorized to be conveyed under subsection (a) are the
    following:
                (1) Any and all interest in 300 acre rights to water from
            Antero Reservoir as set forth in Antero Reservoir Contract No.
            382 dated August 22, 1923, for 160 acre rights; Antero Reservoir
            Contract No. 383 dated August 22, 1923, for 50 acre rights;
            Antero Reservoir Contract No. 384 dated October 30, 1923, for 40
            acre rights; Antero Reservoir Contract No. 387 dated March 3,
            1923, for 50 acre rights; and Supplemental Contract No. 382-383-
            384-387 dated July 24, 1932, defining the amount of water to be
            delivered under the 300 acre rights in the prior contracts as
            220 acre feet.
                (2) Any and all interest in the 305 acre rights of water
            from the High Line Canal, diverted at its headgate on the South
            Platte River and delivered to the Fitzsimons Army Medical Center
            and currently subject to cost assessments pursuant to Denver
            Water Department contract #001990.
                (3) Any and all interest in the 2,603.55 acre rights of
            water from the High Line Canal, diverted at its headgate on the
            South Platte River and delivered to the Rocky Mountain Arsenal
            in Adams County, Colorado, and currently subject to cost
            assessments by the Denver Water Department, including 680 acre
            rights transferred from Lowry Field to the Rocky Mountain
            Arsenal by the October 5, 1943, agreement between the City and
            County of Denver, acting by and through its Board of Water
            Commissioners, and the United States of America.
                (4) Any and all interest in 4,058.34 acre rights of water
            not currently subject to cost assessments by the Denver Water
            Department.
                (5) A new easement for the placement of water lines
            approximately 50 feet wide inside the Southern boundary of Rocky
            Mountain Arsenal and across the Reserve Center along the
            northern side of 56th Avenue.
                (6) A permanent easement for utilities where Denver has an
            existing temporary easement near the southern and western
            boundaries of Rocky Mountain Arsenal.

        (c) Consideration.--(1) The Secretary of the Army may make the
    conveyance under subsection (a) only if the Board of Water
    Commissioners, on behalf of the City and County of Denver, Colorado--
                (A) enters into a permanent contract with the Secretary of
            the Army for purposes of ensuring the delivery of nonpotable
            water and potable water to Rocky Mountain Arsenal; and
                (B) enters into a permanent contract with the Secretary of
            the Interior for purposes of ensuring the delivery of nonpotable
            water and potable water to Rocky Mountain Arsenal National
            Wildlife Refuge, Colorado.

        (2) Section 2809(e) of title 10, United States Code, shall not
    operate to limit the term of the contract entered into under paragraph
    (1)(A).
        (d) Requirement Relating to Conveyance.--The Secretary of the Army
    may not make the conveyance authorized by subsection

    [[Page 112 STAT. 2213]]

    (a) until the execution of the proposed agreement provided for under
    subsection (c) between the City and County of Denver, Colorado, acting
    through its Board of Water Commissioners, the South Adams County Water
    and Sanitation District, the United States Fish and Wildlife Service,
    and the Army.
        (e) Additional Terms and Conditions.--The Secretary of the Army may
    require such additional terms and conditions in connection with the
    conveyance under subsection (a) as the Secretary considers appropriate
    to protect the interests of the United States.

    SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Village of Massena, New York (in this
    section referred to as the ``Village''), all right, title, and interest
    of the United States in and to a parcel of real property, including
    improvements thereon, consisting of the Army Reserve Center in Massena,
    New York, for the purpose of permitting the Village to develop the
    parcel for public benefit, including the development of municipal office
    space.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Village.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the City of Ogdensburg, New York (in this
    section referred to as the ``City''), all right, title, and interest of
    the United States in and to a parcel of real property, including
    improvements thereon, consisting of the Army Reserve Center in
    Ogdensburg, New York, for the purpose of permitting the City to develop
    the parcel for public benefit, including the development of municipal
    office space.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and

    [[Page 112 STAT. 2214]]

    interest in and to the property, including any improvements thereon,
    shall revert to the United States, and the United States shall have the
    right of immediate entry onto the property. Any determination of the
    Secretary under this subsection shall be made on the record after an
    opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Greeneview Local School District of
    Jamestown, Ohio, all right, title, and interest of the United States in
    and to a parcel of real property, including improvements thereon, that
    is located at 5693 Plymouth Road in Jamestown, Ohio, and contains an
    Army Reserve Center, for the purpose of permitting the Greeneview Local
    School District to retain and use the conveyed property for educational
    purposes.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Greeneview Local School District.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Peoria School District #150 of Peoria,
    Illinois (in this section referred to as the ``School District''), all
    right, title, and interest of the United States in and to a parcel of
    real property, including improvements thereon, consisting of the Army
    Reserve Center located at 1429 Northmoor Road in Peoria, Illinois, for
    the purpose of permitting the School District to develop the parcel for
    educational and transportation purposes.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the School District.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose

    [[Page 112 STAT. 2215]]

    of the conveyance specified in such subsection, all right, title, and
    interest in and to the property, including any improvements thereon,
    shall revert to the United States, and the United States shall have the
    right of immediate entry onto the property. Any determination of the
    Secretary under this subsection shall be made on the record after an
    opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Town of Bridgton, Maine (in this section
    referred to as the ``Town''), all right, title, and interest of the
    United States in and to a parcel of real property, including
    improvements thereon, consisting of approximately 3.65 acres and
    containing the Army Reserve Center in Bridgton, Maine, for the purpose
    of permitting the Town to develop the parcel for public benefit,
    including the development of municipal office space.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Town.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the City of Lake Forest, Illinois (in this section referred to as the
    ``City''), all right, title, and interest, of the United States in and
    to all or some portion of the parcel of real property, including
    improvements thereon, at the former Fort Sheridan, Illinois, consisting
    of approximately 14 acres and known as the northern Army Reserve enclave
    area.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the City shall pay to the United States an amount equal
    to not less than the fair market value of the real property to be
    conveyed, as determined by the Secretary.
        (c) Use of Proceeds.--In such amounts as are provided in advance in
    appropriations Acts, the Secretary may use the funds paid by the City
    under subsection (b) to provide for the construction of replacement
    facilities and for the relocation costs for Reserve units and activities
    affected by the conveyance.

    [[Page 112 STAT. 2216]]

        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (e) Notice and Wait.--The Secretary may not make the conveyance
    authorized by subsection (a) until 21 days after the date on which the
    Secretary submits to the congressional defense committees a
    certification that the relocation of the Reserve units and activities
    affected by the conveyance is consistent with an approved master plan
    for the consolidation of Reserve activities in, or in the vicinity of,
    Chicago, Illinois.
        (f ) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.

    SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Town of Skaneateles, New York (in this
    section referred to as the ``Town''), all right, title, and interest of
    the United States in and to a parcel of real property, including
    improvements thereon, consisting of approximately 147.10 acres in
    Skaneateles, New York, and commonly known as the ``Federal Farm'', for
    the purpose of permitting the Town to develop the parcel for public
    benefit, including for recreational purposes.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Town.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interest of the United States.

    SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN,
                INDIANA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the Indiana Army Ammunition Plant Reuse Authority (in this section
    referred to as the ``Reuse Authority'') all right, title, and interest
    of the United States in and to a parcel of real property, including
    improvements thereon, consisting of approximately 4,660 acres located at
    the Indiana Army Ammunition Plant, Charlestown, Indiana, for the purpose
    of developing the parcel as an industrial park to replace all or part of
    the economic activity lost at the inactivated plant.
        (b) Consideration.--Except as provided in subsection (d), as
    consideration for the conveyance under subsection (a), the Reuse
    Authority shall pay to the Secretary an amount equal to the fair

    [[Page 112 STAT. 2217]]

    market value of the conveyed property as of the time of the conveyance,
    determined by the Secretary in accordance with Federal appraisal
    standards and procedures.
        (c) Time for Payment.--The consideration required under subsection
    (b) shall be paid by the Reuse Authority at the end of the 10-year
    period beginning on the date on which the conveyance under subsection
    (a) is completed.
        (d) Effect of Reconveyance or Lease.--(1) If, during the 10-year
    period specified in subsection (c), the Reuse Authority reconveys all or
    any part of the property conveyed under subsection (a), the Reuse
    Authority shall pay to the United States an amount equal to the fair
    market value of the reconveyed property as of the time of the
    reconveyance, excluding the value of any improvements made to the
    property by the Reuse Authority, determined by the Secretary in
    accordance with Federal appraisal standards and procedures.
        (2) The Secretary may treat a lease of the property within such 10-
    year period as a reconveyance if the Secretary determines that the lease
    is being used to avoid application of paragraph (1).
        (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds
    received under subsection (b) or (d) in the special account established
    pursuant to section 204(h)(2) of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 485(h)(2)).
        (f ) Administrative Expenses.--In connection with the conveyance
    under subsection (a), the Secretary may accept amounts provided by the
    Reuse Authority or other persons to cover administrative expenses
    incurred by the Secretary in making the conveyance. Amounts received
    under this subsection for administrative expenses shall be credited to
    the appropriation, fund, or account from which the expenses were paid.
    Amounts so credited shall be merged with funds in such appropriation,
    fund, or account and shall be available for the same purposes and
    subject to the same limitations as the funds with which merged.
        (g) Description of Property.--The property to be conveyed under
    subsection (a) includes the administrative area of the Indiana Army
    Ammunition Plant as well as open space in the southern end of the plant.
    The exact acreage and legal description of the property to be conveyed
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Reuse Authority.
        (h) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.
        (i) Additional Conveyance for Recreational Purposes.--Section
    2858(a) of the Military Construction Authorization Act for Fiscal Year
    1996 (division B of Public Law 104-106; 110 Stat. 571), as amended by
    section 2838 of the Military Construction Authorization Act for Fiscal
    Year 1998 (division B of Public Law 105-85; 111 Stat. 2006), is further
    amended by adding at the end the following new paragraph:
        ``(3) The Secretary may also convey to the State, without
    consideration, another parcel of real property at the Indiana Army
    Ammunition Plant consisting of approximately 2,000 acres of additional
    riverfront property in order to connect the parcel conveyed under
    paragraph (2) with the parcels of Charlestown State Park

    [[Page 112 STAT. 2218]]

    conveyed to the State under paragraph (1) and title II of the Defense
    Authorization Amendments and Base Closure and Realignment Act (Public
    Law 100-526; 10 U.S.C. 2687 note).''.

    SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT,
                CHATTANOOGA, TENNESSEE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    Hamilton County, Tennessee (in this section referred to as the
    ``County''), all right, title, and interest of the United States in and
    to a parcel of real property, including improvements thereon, consisting
    of approximately 1,033 acres located at the Volunteer Army Ammunition
    Plant, Chattanooga, Tennessee, for the purpose of developing the parcel
    as an industrial park to replace all or part of the economic activity
    lost at the inactivated plant.
        (b) Consideration.--Except as provided in subsection (d), as
    consideration for the conveyance under subsection (a), the County shall
    pay to the Secretary an amount equal to the fair market value of the
    conveyed property as of the time of the conveyance, determined by the
    Secretary in accordance with Federal appraisal standards and procedures.
        (c) Time for Payment.--The consideration required under subsection
    (b) shall be paid by the County at the end of the 10-year period
    beginning on the date on which the conveyance under subsection (a) is
    completed.
        (d) Effect of Reconveyance or Lease.--(1) If the County reconveys
    all or any part of the conveyed property during the 10-year period
    specified in subsection (c), the County shall pay to the United States
    an amount equal to the fair market value of the reconveyed property as
    of the time of the reconveyance, excluding the value of any improvements
    made to the property by the County, determined by the Secretary in
    accordance with Federal appraisal standards and procedures.
        (2) The Secretary may treat a lease of the property within such 10-
    year period as a reconveyance if the Secretary determines that the lease
    is being used to avoid application of paragraph (1).
        (e) Deposit of Proceeds.--The Secretary shall deposit any proceeds
    received under subsection (b) or (d) in the special account established
    pursuant to section 204(h)(2) of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 485(h)(2)).
        (f ) Effect on Existing Leases.--The conveyance of the real property
    under subsection (a) shall not affect the terms or length of any
    contract entered into by the Secretary before the date of the enactment
    of this Act with regard to the property to be conveyed.
        (g) Administrative Expenses.--In connection with the conveyance
    under subsection (a), the Secretary may accept amounts provided by the
    County or other persons to cover administrative expenses incurred by the
    Secretary in making the conveyance. Amounts received under this
    subsection for administrative expenses shall be credited to the
    appropriation, fund, or account from which the expenses were paid.
    Amounts so credited shall be merged with funds in such appropriation,
    fund, or account and shall be available for the same purposes and
    subject to the same limitations as the funds with which merged.
        (h) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a)

    [[Page 112 STAT. 2219]]

    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the County.
        (i) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW WINDSOR, NEW
                YORK.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Town of New Windsor, New York (in this
    section referred to as the ``Town''), all right, title, and interest of
    the United States in and to a parcel of real property, including
    improvements thereon, consisting of approximately 291 acres at the
    Stewart Army Sub-Post in New Windsor, New York, for the purpose of
    permitting the Town to develop the parcel for economic purposes.
        (b) Exclusion.--The real property to be conveyed under subsection
    (a) does not include any portion of the approximately 89.2-acre parcel
    at Stewart Army Sub-Post that is proposed for transfer to the
    jurisdiction and control of the Marine Corps or the approximately 22-
    acre parcel at Stewart Army Sub-Post that is proposed for transfer to
    the jurisdiction and control of the Army Reserve.
        (c) Conditions of Conveyance.--The conveyance authorized by
    subsection (a) may only be made subject to the following conditions:
                (1) The Town must agree to provide connections to the local
            wastewater and sewage treatment system for all existing and
            future improvements to the parcels of real property referred to
            in subsection (b).
                (2) The Town must agree to provide wastewater and sewage
            treatment service to such parcels at a rate established by the
            appropriate Federal or State regulatory authority.

        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Town.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

                            PART II--NAVY CONVEYANCES

    SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON,
                CALIFORNIA.

        (a) Easement Authorized.--The Secretary of the Navy may grant an
    easement, in perpetuity, to the Foothill/Eastern Transportation Corridor
    Agency (in this section referred to as the ``Agency'') over a parcel of
    real property at Marine Corps Base, Camp Pendleton, California,
    consisting of approximately 340 acres to permit the recipient of the
    easement to construct, operate, and maintain a restricted access
    highway. The area covered by the easement shall include slopes and all
    necessary incidents thereto.
        (b) Consideration.--As consideration for the grant of an easement
    under subsection (a), the Agency shall pay to the United States an
    amount equal to the fair market value of the easement,

    [[Page 112 STAT. 2220]]

    as determined by an independent appraisal satisfactory to the Secretary
    and paid for by the Agency.
        (c) Use of Proceeds.--In such amounts as are provided in advance in
    appropriation Acts, the Secretary shall use the funds paid by the Agency
    under subsection (b) to carry out one or more of the following programs
    at Camp Pendleton:
                (1) Enhancement of access from Red, White, and Green Beaches
            under Interstate Route 5 and railroad crossings to inland areas.
                (2) Improvement of roads and bridge structures in the range
            and training area.
                (3) Realignment of Basilone Road.

        (d) Description of Property.--The exact acreage and legal
    description of the easement to be granted under subsection (a) shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the Agency.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the grant of an
    easement under subsection (a) as the Secretary considers appropriate to
    protect the interests of the United States.

    SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, PORTLAND,
                MAINE.

        (a) Conveyance Authorized.--(1) The Secretary of the Navy may convey
    to the Gulf of Maine Aquarium Development Corporation, Portland, Maine
    (in this section referred to as the ``Corporation''), all right, title,
    and interest of the United States in and to a parcel of real property,
    including improvements thereon, consisting of approximately 3.72 acres
    in Portland, Maine, and containing the Naval Reserve Readiness Center,
    Portland, Maine, for the purpose of permitting the Corporation to use
    the parcel for economic development and as the site for an aquarium and
    marine research facility.
        (2) As part of the conveyance under paragraph (1), the Secretary
    shall also convey to the Corporation any interest of the United States
    in the submerged lands adjacent to the real property conveyed under that
    paragraph that is appurtenant to the real property conveyed under that
    paragraph.
        (b) Provision of Replacement Facilities.--As consideration for the
    conveyance authorized by subsection (a), the Corporation shall design
    and construct such facilities as the Secretary determines appropriate
    for the Naval Reserve to replace the facilities conveyed under that
    subsection.
        (c) Location of Replacement Facilities.--(1) To provide a location
    for the replacement facilities required under subsection (b), the
    Corporation shall--
                (A) convey to the United States all right, title, and
            interest in and to a parcel of real property determined by the
            Secretary to be an appropriate location for such facilities; or
                (B) design and construct such facilities on such parcel of
            real property under the jurisdiction of the Secretary as the
            Secretary shall specify.

        (2) The Secretary shall select the alternative provided under
    paragraph (1) to be used by the Corporation.
        (d) Notice and Wait.--The Secretary may not make the conveyance
    authorized by subsection (a) until 21 days after the date on which the
    Secretary submits to the congressional defense

    [[Page 112 STAT. 2221]]

    committees a report specifying the terms and conditions under which the
    conveyance will occur.
        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)(1),
    of any interest to be conveyed under subsection (a)(2), and of the real
    property, if any, to be conveyed under subsection (c)(1)(A) shall be
    determined by surveys satisfactory to the Secretary. The cost of the
    surveys shall be borne by the Corporation.
        (f ) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.

    SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE FACILITY,
                YOUNGSTOWN, OHIO.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey,
    without consideration, to the City of Youngstown, Ohio (in this section
    referred to as the ``City''), all right, title, and interest of the
    United States in and to a parcel of real property, including
    improvements thereon, that is located at 315 East Laclede Avenue in
    Youngstown, Ohio, and is the location of a Naval and Marine Corps
    Reserve facility, for the purpose of permitting the City to use the
    parcel for educational purposes.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the City.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, MINNEAPOLIS,
                MINNESOTA.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey to
    the Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota (in
    this section referred to as the ``Commission''), all right, title, and
    interest of the United States in and to a parcel of real property,
    including improvements thereon, consisting of approximately 32 acres
    located in Minneapolis, Minnesota, and comprising the Naval Air Reserve
    Center, Minneapolis, Minnesota, for the purpose of facilitating the
    expansion of the Minneapolis-St. Paul International Airport.
        (b) Alternative Lease Authority.--In lieu of the conveyance
    authorized by subsection (a), the Secretary may elect to lease the
    property referred to in that subsection to the Commission if the
    Secretary determines that a lease of the property would better serve the
    interests of the United States.

    [[Page 112 STAT. 2222]]

        (c) Provision of Replacement Facilities.--As consideration for the
    conveyance under subsection (a), or the lease under subsection (b), the
    Commission shall--
                (1) provide for such facilities as the Secretary considers
            appropriate for the Naval Reserve to replace the facilities
            conveyed or leased under this section;
                (2) assume the costs of designing and constructing such
            replacement facilities, as may be acceptable to the Secretary;
            and
                (3) assume any costs incurred by the Secretary in relocating
            the operations of the Naval Air Reserve Center to such
            replacement facilities.

        (d) Location of Replacement Facilities.--To provide a location for
    the replacement facilities required under subsection (c), the Commission
    may--
                (1) convey to the United States all right, title, and
            interest in and to a parcel of real property determined by the
            Secretary to be an appropriate location for such facilities, if
            the Secretary elects to make the conveyance authorized by
            subsection (a); or
                (2) lease to the United States a parcel of real property
            determined by the Secretary to be an appropriate location for
            such facilities, if the Secretary elects to make the lease
            authorized by subsection (b).

        (e) Availability of Replacement Facilities.--The Secretary may not
    make the conveyance authorized by subsection (a), or enter into the
    lease authorized by subsection (b), until the replacement facilities
    required by subsection (c) are available for the relocation of the
    operations of the Naval Air Reserve Center.
        (f ) Agreement Relating to Conveyance.--(1) If the Secretary
    determines to proceed with the conveyance authorized by subsection (a),
    or the lease authorized by subsection (b), the Secretary and the
    Commission shall enter into an agreement specifying the terms and
    conditions under which the conveyance or lease will occur.
        (2) The Secretary may not enter into the agreement under paragraph
    (1) until 21 days after the date on which the Secretary submits to the
    congressional defense committees a report specifying the terms and
    conditions under which the conveyance or lease will occur.
        (g) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed to the Commission under
    subsection (a), or leased to the Commission under subsection (b), and
    the exact acreage and legal description of the real property to be
    conveyed or leased under subsection (d) to the United States, shall be
    determined by surveys satisfactory to the Secretary. The cost of the
    surveys shall be borne by the Commission.
        (h) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a), or the lease under subsection (b), as the Secretary
    considers appropriate to protect the interests of the United States.

    [[Page 112 STAT. 2223]]

                         PART III--AIR FORCE CONVEYANCES

    SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE,
                FLORIDA.

        Section 809(c) of the Military Construction Authorization Act, 1979
    (Public Law 95-356; 92 Stat. 587), as amended by section 2826 of the
    Military Construction Authorization Act, 1989 (division B of Public Law
    100-456; 102 Stat. 2123), is further amended by striking out ``and a
    third parcel containing forty-two acres'' and inserting in lieu thereof
    ``, a third parcel containing forty-two acres, a fourth parcel
    containing approximately 3.43 acres, and a fifth parcel containing
    approximately 0.56 acres''.

    SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE STATION,
                NORTH DAKOTA.

        Section 2835 of the Military Construction Authorization Act for
    Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3063) is
    amended--
                (1) by striking out subsections (a), (b), and (c) and
            inserting in lieu thereof the following new subsections:

        ``(a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the City of Finley, North Dakota (in
    this section referred to as the `City'), all right, title, and interest
    of the United States in and to the parcels of real property, including
    improvements thereon, in the vicinity of Finley, North Dakota, described
    in subsection (b), for the purpose of permitting the City to use the
    parcels for economic development.
        ``(b) Covered Parcels.--The parcels of real property authorized for
    conveyance under subsection (a) are as follows:
                ``(1) A parcel of approximately 14 acres that served as the
            support complex of the Finley Air Force Station and Radar Site.
                ``(2) A parcel of approximately 57 acres known as the Finley
            Air Force Station Complex.
                ``(3) A parcel of approximately 6 acres that includes a well
            site and wastewater treatment system.

        ``(c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.''; and
                (2) in subsections (d) and (e), by striking out ``subsection
            (a)(1)'' and inserting in lieu thereof ``subsection (a)''.

    SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to McNeese State University of Louisiana
    (in this section referred to as the ``University''), all right, title,
    and interest of the United States in and to a parcel of real property,
    including improvements thereon, consisting of

    [[Page 112 STAT. 2224]]

    approximately 4.38 acres at Lake Charles Air Force Station, Louisiana,
    for the purpose of permitting the University to use the parcel for
    educational purposes and agricultural research.
        (b) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the University.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA,
                COLORADO.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the City of La Junta, Colorado (in
    this section referred to as the ``City''), all right, title, and
    interest of the United States in and to the unused Air Force housing
    facility, consisting of approximately 28 acres and improvements thereon,
    located within the southern-most boundary of the City, for the purpose
    of permitting the City to develop the conveyed property for housing and
    educational purposes.
        (b) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a) shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the City.
        (c) Reversionary Interest.--During the 5-year period beginning on
    the date the Secretary makes the conveyance authorized under subsection
    (a), if the Secretary determines that the conveyed real property is not
    being used in accordance with the purpose of the conveyance specified in
    such subsection, all right, title, and interest in and to the property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry onto the
    property. Any determination of the Secretary under this subsection shall
    be made on the record after an opportunity for a hearing.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    [[Page 112 STAT. 2225]]

                            Subtitle E--Other Matters

    SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF DEFENSE
                LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.

        (a) Program Requirements.--Subsection (c) of section 2892 of the
    Military Construction Authorization Act for Fiscal Year 1996 (division B
    of Public Law 104-106; 110 Stat. 590; 10 U.S.C. 2805 note) is amended to
    read as follows:
        ``(c) Program Requirements.--(1) Not later than 30 days before
    commencing the program, the Secretary shall establish procedures for the
    review and approval of requests from Department of Defense laboratories
    for construction under the program.
        ``(2) The laboratories at which construction may be carried out
    under the program may not include Department of Defense laboratories
    that are contractor-owned.''.
        (b) Report.--Subsection (d) of that section is amended to read as
    follows:
        ``(d) Report.--Not later than February 1, 2003, the Secretary shall
    submit to Congress a report on the program. The report shall include the
    Secretary's conclusions and recommendation regarding the desirability of
    making the authority set forth under subsection (b) permanent.''.
        (c) Extension.--Subsection (g) of that section is amended by
    striking out ``September 30, 1998'' and inserting in lieu thereof
    ``September 30, 2003''.

    SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD,
                FORT HOOD, TEXAS, WITH CIVIL AVIATION.

        Section 319 of the National Defense Authorization Act for Fiscal
    Year 1987 (Public Law 99-661; 100 Stat. 3855) is repealed.

    SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE OF FIRE,
                SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM
                LOCAL GOVERNMENT AGENCIES.

        Section 816 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2820), as amended by section
    352 of the National Defense Authorization Act for Fiscal Year 1997
    (Public Law 104-201; 110 Stat. 2491), is further
    amended--
                (1) in subsection (a), by striking out ``, beginning October
            1, 1994,'';
                (2) in subsection (b), by striking out ``and 1998'' and
            inserting in lieu thereof ``through 2000''; and
                (3) by adding at the end the following new subsection:

        ``(c) Duration of Project.--The authority to purchase or receive
    services under the demonstration project shall expire on September 30,
    2000.''.

    SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE CORPS
                RESERVE CENTER, AUGUSTA, GEORGIA.

        The building containing the Navy and Marine Corps Reserve Center
    located at 2869 Central Avenue in Augusta, Georgia, shall be known and
    designated as the ``A. James Dyess Building''.

    [[Page 112 STAT. 2226]]

    TITLE XXIX--JUNIPER <<NOTE: Juniper Butte Range Withdrawal Act.>> BUTTE
    RANGE WITHDRAWAL

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

    SEC. 2901. SHORT TITLE.

        This title may be cited as the ``Juniper Butte Range Withdrawal
    Act''.

    SEC. 2902. WITHDRAWAL AND RESERVATION.

        (a) Withdrawal.--Subject to valid existing rights and except as
    otherwise provided in this title, the lands at the Juniper Butte Range,
    Idaho, referred to in subsection (c), are withdrawn from all forms of
    appropriation under the public land laws, including the mining laws and
    the mineral and geothermal leasing laws but not the Act of July 31, 1947
    (commonly known as the Materials Act of 1947; 30 U.S.C. 601 et seq.).
        (b) Reserved Uses.--The lands withdrawn under subsection (a) are
    reserved for use by the Secretary of the Air Force for--
                (1) a high hazard training area;
                (2) dropping non-explosive training ordnance with spotting
            charges;
                (3) electronic warfare and tactical maneuvering and air
            support; and
                (4) other defense-related purposes consistent with the
            purposes specified in paragraphs (1), (2), and (3), including
            continued natural resource management and environmental
            remediation in accordance with section 2916.

        (c) Site Development Plans.--(1) Site development plans shall be
    prepared before construction.
        (2) Site development plans shall be incorporated in the integrated
    natural resource management plan developed under section 2909.
        (3) Except in the case of any minimal improvements, development on
    the withdrawn lands of any facilities beyond those proposed and analyzed
    in the Environmental Impact Statement concerning Enhanced Training in
    Idaho, prepared by the Secretary of the Air Force, the Record of
    Decision dated March 10, 1998, concerning Enhanced Training in Idaho,
    prepared by the Secretary of the Air Force, and the site development
    plans shall be contingent upon review and approval of the Idaho State
    Director of the Bureau of Land Management.

    [[Page 112 STAT. 2227]]

        (d) General Description.--(1) The public lands withdrawn and
    reserved by this section comprise approximately 11,300 acres of public
    land in Owhyee County, Idaho, as generally depicted on the map entitled
    ``Juniper Butte Range Withdrawal--Proposed'', dated June 1998, that will
    be filed in accordance with section 2903.
        (2) The withdrawal is for an approximately 10,600-acre tactical
    training range, a 640-acre no-drop target site, four 5-acre no-drop
    target sites and nine 1-acre electronic threat emitter sites.

    SEC. 2903. MAP AND LEGAL DESCRIPTION.

        (a) In General.--As soon as practicable after the date of the
    enactment of this Act, the Secretary of the Interior shall--
                (1) publish in the Federal Register a notice containing the
            legal description of the lands withdrawn and reserved by this
            title; and
                (2) file a map or maps and the legal description of the
            lands withdrawn and reserved by this title with the Committee on
            Energy and Natural Resources of the Senate and with the
            Committee on Resources of the House of Representatives.

        (b) Incorporation by Reference.--Such maps and legal description
    shall have the same force and effect as if included in this title.
        (c) Correction of Errors.--The Secretary of the Interior may correct
    clerical and typographical errors in such map or maps and legal
    description.
        (d) Availability.--Copies of such map or maps and the legal
    description shall be available for public inspection in the following
    offices:
                (1) The office of the Idaho State Director of the Bureau of
            Land Management.
                (2) The offices of the managers of the Lower Snake River
            District, Bureau Field Office and Jarbidge Field Office of the
            Bureau of Land Management.
                (3) The Office of the commander of Mountain Home Air Force
            Base, Idaho.

        (e) Utilization of Air Force Descriptions and Maps.--To the extent
    practicable, the Secretary of the Interior shall adopt the legal
    description and maps prepared by the Secretary of the Air Force in
    support of this title.
        (f ) Reimbursement of Costs.--The Secretary of the Air Force shall
    reimburse the Secretary of the Interior for the costs incurred by the
    Department of the Interior in implementing this section.

    SEC. 2904. AGENCY AGREEMENT.

        (a) Findings.--Congress makes the following findings:
                (1) The Bureau of Land Management and the Air Force have
            agreed upon additional mitigation measures associated with this
            land withdrawal as specified in the ``ENHANCED TRAINING IN IDAHO
            Memorandum of Understanding Between The Bureau of Land
            Management and The United States Air Force'' dated June 11,
            1998.
                (2) This agreement specifies that these mitigation measures
            will be adopted as part of the Air Force's Record of Decision
            for Enhanced Training in Idaho.
                (3) Congress endorses this collaborative effort between the
            agencies and directs that the agreement be implemented.

    [[Page 112 STAT. 2228]]

        (b) Modification.--The parties may, in accordance with the National
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), mutually
    agree to modify the mitigation measures specified in the agreement in
    light of experience gained through the actions called for in the
    agreement or as a result of changed military circumstances.
        (c) Construction.--Neither the agreement, any modification thereof,
    nor this section creates any right, benefit, or trust responsibility,
    substantive or procedural, enforceable at law or equity by a party
    against the United States, its agencies, its officers, or any person.

    SEC. 2905. RIGHT-OF-WAY GRANTS.

        In addition to the withdrawal under section 2902 and in accordance
    with all applicable laws, the Secretary of the Interior shall process
    and grant the Secretary of the Air Force rights-of-way using the
    Department of the Interior regulations and policies in effect at the
    time of filing applications for the one-quarter acre electronic warfare
    threat emitter sites, roads, powerlines, and other ancillary facilities
    as described and analyzed in the Enhanced Training in Idaho Final
    Environmental Impact Statement, dated January 1998.

    SEC. 2906. INDIAN SACRED SITES.

        (a) Management.--(1) In the management of the Federal lands
    withdrawn and reserved by this title, the Air Force shall, to the extent
    practicable and not clearly inconsistent with essential agency
    functions--
                (A) accommodate access to and ceremonial use of Indian
            sacred sites by Indian religious practitioners; and
                (B) avoid adversely affecting the integrity of such sacred
            sites.

        (2) The Secretary of the Air Force shall maintain the
    confidentiality of such sites where appropriate.
        (b) Consultation.--The commander of Mountain Home Air Force Base,
    Idaho, shall regularly consult with the Tribal Chairman of the Shoshone-
    Paiute Tribes of the Duck Valley Reservation to assure that tribal
    government rights and concerns are fully considered during the
    development of the Juniper Butte Range.
        (c) Definitions.--In this section:
                (1) The term ``sacred site'' shall mean any specific,
            discrete, narrowly delineated location on Federal land that is
            identified by an Indian tribe, or Indian individual determined
            to be an appropriately authoritative representative of an Indian
            religion, as sacred by virtue of its established religious
            significance to, or ceremonial use by, an Indian religion but
            only to the extent that the tribe or appropriately authoritative
            representative of an Indian religion has informed the Air Force
            of the existence of such a site.
                (2) The term ``Indian tribe'' means an Indian or Alaska
            Native tribe, band, nation, pueblo, village, or community that
            the Secretary of the Interior acknowledges to exist as an Indian
            tribe pursuant to the Federally Recognized Indian Tribe List Act
            of 1994 (25 U.S.C. 479a-1).
                (3) The term ``Indian'' refers to a member of an Indian
            tribe.

    [[Page 112 STAT. 2229]]

    SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.

        (a) Authority To Conclude and Implement Agreements.--The Secretary
    of the Air Force is authorized and directed to, upon such terms and
    conditions as the Secretary of the Air Force considers just and in the
    national interest, conclude and implement agreements with the grazing
    permittees to provide appropriate consideration, including future
    grazing arrangements.
        (b) Implementation.--(1) Upon the conclusion of these agreements,
    the Assistant Secretary of the Interior for Land and Minerals Management
    shall grant rights-of-way and approvals and take such actions as are
    necessary to implement promptly this title and the agreements with the
    grazing permittees.
        (2) The Secretary of the Air Force and the Secretary of the Interior
    shall allow the grazing permittees for lands withdrawn and reserved by
    this title to continue their activities on the lands in accordance with
    the permits and their applicable regulations until the Secretary of the
    Air Force has fully implemented the agreement with the grazing
    permittees under this section.
        (3) Upon the implementation of these agreements, the Bureau of Land
    Management is authorized and directed, subject to the limitations
    included in this section, to terminate grazing on the lands withdrawn.

    SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

        (a) In General.--Except as provided in section 2916(d), during the
    withdrawal and reservation of any lands under this title, the Secretary
    of the Air Force shall manage such lands for purposes relating to the
    uses set forth in section 2902(b).
        (b) Management According To Plan.--The lands withdrawn and reserved
    by this title shall be managed in accordance with the provisions of this
    title under the integrated natural resources management plan prepared
    under section 2909.
        (c) Authority To Close Land.--(1) If the Secretary of the Air Force
    determines that military operations, public safety, or the interests of
    national security require the closure to public use of any road, trail,
    or other portion of the lands withdrawn by this title that are commonly
    in public use, the Secretary of the Air Force may take such action.
        (2) Closures under paragraph (1) shall be limited to the minimum
    areas and periods required for the purposes specified in this
    subsection.
        (3) During closures, the Secretary of the Air Force shall keep
    appropriate warning notices posted and take appropriate steps to notify
    the public about the closures.
        (d) Lease Authority.--The Secretary of the Air Force may enter into
    leases for State lands with the State of Idaho in support of the Juniper
    Butte Range and operations at the Juniper Butte Range.
        (e) Prevention and Suppression of Fire.--(1) The Secretary of the
    Air Force shall take appropriate precautions to prevent and suppress
    brush fires and range fires that occur within the boundaries of the
    Juniper Butte Range, as well as brush and range fires occurring outside
    the boundaries of the Range resulting from military activities.

    [[Page 112 STAT. 2230]]

        (2) Notwithstanding section 2465 of title 10, United States Code,
    the Secretary of the Air Force may obligate funds appropriated or
    otherwise available to the Secretary to enter into contracts for fire-
    fighting.
        (3)(A) The memorandum of understanding under section 2910 shall
    provide for the Bureau of Land Management to assist the Secretary of the
    Air Force in the suppression of the fires described in paragraph (1).
        (B) The memorandum of understanding shall provide that the Secretary
    of the Air Force reimburse the Bureau of Land Management for any costs
    incurred by the Bureau of Land Management under this paragraph.
        (f ) Use of Mineral Materials.--Notwithstanding any other provision
    of this title or the Act of July 31, 1947 (commonly known as the
    Materials Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Air
    Force may use, from the lands withdrawn and reserved by this title,
    sand, gravel, or similar mineral material resources of the type subject
    to disposition under the Act of July 31, 1947, when the use of such
    resources is required for construction needs of the Juniper Butte Range.

    SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

        (a) Requirement.--(1)(A) Not later than 2 years after the date of
    the enactment of this Act, the Secretary of the Air Force shall, in
    cooperation with the Secretary of the Interior, the State of Idaho, and
    Owyhee County, Idaho, develop an integrated natural resources management
    plan to address the management of the resources of the lands withdrawn
    and reserved by this title during their withdrawal and reservation under
    this title.
        (B) Additionally, the integrated natural resource management plan
    shall address mitigation and monitoring activities by the Air Force for
    State and Federal lands affected by military training activities
    associated with the Juniper Butte Range.
        (C) The foregoing will be done cooperatively between the Air Force,
    the Bureau of Land Management, the State of Idaho, and Owyhee County,
    Idaho.
        (2) Except as otherwise provided under this title, the integrated
    natural resources management plan under this section shall be developed
    in accordance with, and meet the requirements of, section 101 of the
    Sikes Act (16 U.S.C. 670a).
        (3)(A) Site development plans shall be prepared before construction
    of facilities.
        (B) Such plans shall be reviewed by the Bureau of Land Management,
    for Federal lands, and the State of Idaho, for State lands, for
    consistency with the proposal assessed in the Enhanced Training in Idaho
    Environmental Impact Statement.
        (C) The portion of such development plans describing reconfigurable
    or replacement targets may be conceptual.
        (b) Elements.--The integrated natural resources management plan
    under subsection (a) shall--
                (1) include provisions for the proper management and
            protection of the natural, cultural, and other resources and
            values of the lands withdrawn and reserved by this title and for
            the use of such resources in a manner consistent with the uses
            set forth in section 2902(b);
                (2) permit livestock grazing at the discretion of the
            Secretary of the Air Force in accordance with section 2907 or

    [[Page 112 STAT. 2231]]

            any other authorities relating to livestock grazing that are
            available to that Secretary;
                (3) permit fencing, water pipeline modifications and
            extensions, and the construction of aboveground water
            reservoirs, and the maintenance and repair of these items on the
            lands withdrawn and reserved by this title, and on other lands
            under the jurisdiction of the Bureau of Land Management; and
                (4) otherwise provide for the management by the Secretary of
            the Air Force of any lands withdrawn and reserved by this title
            while retained under the jurisdiction of that Secretary under
            this title.

        (c) Periodic Review.--The Secretary of the Air Force shall, in
    cooperation with the Secretary of the Interior and the State of Idaho,
    review the adequacy of the provisions of the integrated natural
    resources management plan developed under this section at least once
    every 5 years after the effective date of the plan.

    SEC. 2910. MEMORANDUM OF UNDERSTANDING.

        (a) Requirement.--The Secretary of the Air Force, the Secretary of
    the Interior, and the Governor of the State of Idaho shall jointly enter
    into a memorandum of understanding to implement the integrated natural
    resources management plan required under section 2909.
        (b) Term.--The memorandum of understanding under subsection (a)
    shall apply to any lands withdrawn and reserved by this title until
    their relinquishment by the Secretary of the Air Force under this title.
        (c) Modification.--The memorandum of understanding under subsection
    (a) may be modified by agreement of all the parties specified in that
    subsection.

    SEC. 2911. MAINTENANCE OF ROADS.

        The Secretary of the Air Force shall enter into agreements with the
    Owyhee County Highway District, Idaho, and the Three Creek Good Roads
    Highway District, Idaho, under which the Secretary of the Air Force
    shall pay the costs of road maintenance incurred by such districts that
    are attributable to operations of the Department of the Air Force
    associated with the Juniper Butte Range.

    SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

        Except as provided in subsection 2908(f ), the Secretary of the
    Interior shall manage all withdrawn and acquired mineral resources
    within the boundaries of the Juniper Butte Range in accordance with the
    Act of February 28, 1958 (commonly known as the Engle Act; 43 U.S.C. 155
    et seq.).

    SEC. 2913. HUNTING, FISHING, AND TRAPPING.

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

    SEC. 2914. WATER RIGHTS.

        (a) Limitation.--The Secretary of the Air Force shall not seek or
    obtain any water rights associated with any water pipeline modified or
    extended, or aboveground water reservoir constructed, for purposes of
    consideration under section 2907.

    [[Page 112 STAT. 2232]]

        (b) New Rights.--(1) Nothing in this title shall be construed to
    establish a reservation in favor of the United States with respect to
    any water or water right on the lands withdrawn and reserved by this
    title.
        (2) Nothing in this title shall be construed to authorize the
    appropriation of water on the lands withdrawn and reserved by this title
    by the United States after the date of the enactment of this Act unless
    such appropriation is carried out in accordance with the laws of the
    State of Idaho.
        (c) Applicability.--This section may not be construed to affect any
    water rights acquired by the United States before the date of the
    enactment of this Act.

    SEC. 2915. DURATION OF WITHDRAWAL.

        (a) Termination--(1) Except as otherwise provided in this section
    and section 2916, the withdrawal and reservation made by this title
    shall terminate 25 years after the date of the enactment of this Act.
        (2) <<NOTE: Federal Register, publication.>> At the time of
    termination, the previously withdrawn lands shall not be open to the
    general land laws, including the mining laws and the mineral and
    geothermal leasing laws, until the Secretary of the Interior publishes
    in the Federal Register an appropriate order which shall state the date
    upon which such lands shall be opened.

        (b) Relinquishment.--(1) If the Secretary of the Air Force
    determines under subsection (c) that the Air Force has no continuing
    military need for any lands withdrawn and reserved by this title, the
    Secretary of the Air Force shall submit to the Secretary of the Interior
    a notice of intent to relinquish jurisdiction over such lands to the
    Secretary of the Interior.
        (2) The Secretary of the Interior may accept jurisdiction over any
    lands covered by a notice of intent to relinquish jurisdiction under
    paragraph (1) if the Secretary of the Interior determines that the
    Secretary of the Air Force has completed the environmental review
    required under section 2916(a) and the conditions under section 2916(c)
    have been met.
        (3) <<NOTE: Federal Register publication.>> If the Secretary of the
    Interior decides to accept jurisdiction over lands under paragraph (2)
    before the date of termination, as provided for in subsection (a)(1),
    the Secretary of the Interior shall publish in the Federal Register an
    appropriate order which shall--
                (A) revoke the withdrawal and reservation of such lands
            under this title;
                (B) constitute official acceptance of administrative
            jurisdiction over the lands by the Secretary of the Interior;
            and
                (C) state the date upon which such lands shall be opened to
            the operation of the general land laws, including the mining
            laws and the mineral and geothermal leasing laws, if
            appropriate.

        (4) The Secretary of the Interior shall manage any lands
    relinquished under this subsection as multiple use status lands.
        (5) If the Secretary of the Interior declines pursuant to subsection
    (b)(2) to accept jurisdiction of any parcel of land proposed for
    relinquishment, that parcel shall remain under the continued
    administration of the Secretary of the Air Force pursuant to section
    2916(d).

    [[Page 112 STAT. 2233]]

        (c) Extension.--(1) In the case of any lands withdrawn and reserved
    by this title that the Air Force proposes to include in a notice of
    extension because of continued military need under paragraph (2), the
    Secretary of the Air Force shall, before issuing the notice under
    paragraph (2)--
                (A) evaluate the environmental effects of the extension of
            the withdrawal and reservation of such lands in accordance with
            all applicable laws and regulations; and
                (B) hold at least one public meeting in the State of Idaho
            regarding that evaluation.

        (2)(A) Not later than 2 years before the termination of the
    withdrawal and reservation of lands by this title under subsection (a),
    the Secretary of the Air Force shall notify Congress and the Secretary
    of the Interior as to whether or not the Air Force has a continuing
    military need for any of the lands withdrawn and reserved by this title,
    and not previously relinquished under this section, after the
    termination date as specified in subsection (a).
        (B)(i) The Secretary of the Air force shall specify in the notice
    under subparagraph (A) the duration of any extension or further
    extension of withdrawal and reservation of such lands under this title.
        (ii) The duration of each extension or further extension under
    clause (i) shall not exceed 25 years.
        (C) <<NOTE: Federal Register, publication.>> The notice under
    subparagraph (A) shall be published in the Federal Register and a
    newspaper of local distribution with the opportunity for comments,
    within a 60-day period, which shall be provided to the Secretary of the
    Air Force and the Secretary of the Interior.

        (3)(A) Subject to subparagraph (B), in the case of any lands
    withdrawn and reserved by this title that are covered by a notice of
    extension under subsection (c)(2), the withdrawal and reservation of
    such lands shall extend under the provisions of this title after the
    termination date otherwise provided for under subsection (a) for such
    period as is specified in the notice under subsection (c)(2).
        (B) Subparagraph (A) shall not apply with respect to any lands
    covered by a notice referred to in that paragraph until 90 legislative
    days after the date on which the notice with respect to such lands is
    submitted to Congress under paragraph (2).

    SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED WITHDRAWN LANDS OR
                UPON TERMINATION OF WITHDRAWAL.

        (a) Environmental Review.--(1) Before submitting under section 2915
    a notice of an intent to relinquish jurisdiction over lands withdrawn
    and reserved by this title, and in all cases not later than 2 years
    before the date of termination of withdrawal and reservation, the
    Secretary of the Air Force shall, in consultation with the Secretary of
    the Interior, complete a review that fully characterizes the
    environmental conditions of such lands (including any water and air
    associated with such lands) in order to identify any contamination on
    such lands.
        (2) The Secretary of the Air Force shall submit to the Secretary of
    the Interior a copy of the review prepared with respect to any lands
    under paragraph (1). The Secretary of the Air Force shall also submit at
    the same time any notice of intent to relinquish jurisdiction over such
    lands under section 2915.

    [[Page 112 STAT. 2234]]

        (3) The Secretary of the Air Force shall submit a copy of any such
    review to Congress.
        (b) Environmental Remediation of Lands.--The Secretary of the Air
    Force shall, in accordance with applicable State and Federal law, carry
    out and complete environmental remediation--
                (1) before relinquishing jurisdiction to the Secretary of
            the Interior over any lands identified in a notice of intent to
            relinquish under section 2915(b); or
                (2) before the date of termination of the withdrawal and
            reservation, except as provided under subsection (d).

        (c) Postponement of Relinquishment.--The Secretary of the Interior
    shall not accept jurisdiction over any lands that are the subject of
    activities under subsection (b) until the Secretary of the Interior
    determines that environmental conditions on the lands are such that--
                (1) all necessary environmental remediation has been
            completed by the Secretary of the Air Force;
                (2) the lands are safe for nonmilitary uses; and
                (3) the lands could be opened consistent with the Secretary
            of the Interior's public land management responsibilities.

        (d) Jurisdiction When Withdrawal Terminates.--If the determination
    required by section (c) cannot be achieved for any parcel of land
    subject to the withdrawal and reservation before the termination date of
    the withdrawal and reservation, the Secretary of the Air Force shall
    retain administrative jurisdiction over such parcels of land
    notwithstanding the termination date for the limited purposes of--
                (1) environmental remediation activities under subsection
            (b); and
                (2) any activities relating to the management of such lands
            after the termination of the withdrawal reservation for military
            purposes that are provided for in the integrated natural
            resources management plan under section 2909.

        (e) Effect on Other Laws.--Nothing in this title shall affect, or be
    construed to affect, the obligations, if any, of the Secretary of the
    Air Force to decontaminate lands withdrawn by this title pursuant to
    applicable law, including the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the
    Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

    SEC. 2917. DELEGATION OF AUTHORITY.

        (a) Department of the Air Force Functions.--Except for executing the
    agreement referred to in section 2907, the Secretary of the Air Force
    may delegate that Secretary's functions under this title.
        (b) Department of the Interior Functions.--(1) Except as provided in
    paragraph (2), the Secretary of the Interior may delegate that
    Secretary's functions under this title.
        (2) The order referred to in section 2915(b)(3) may be approved and
    signed only by the Secretary of the Interior, the Deputy Secretary of
    the Interior, or an Assistant Secretary of the Interior.
        (3) The approvals granted by the Bureau of Land Management shall be
    pursuant to the decisions of the Secretary of the Interior, or the
    Assistant Secretary for Land and Minerals Management.

    [[Page 112 STAT. 2235]]

    SEC. 2918. HOLD HARMLESS.

        Any party conducting any mining, mineral, or geothermal leasing
    activity on lands withdrawn and reserved by this title shall indemnify
    the United States against any costs, fees, damages, or other liabilities
    (including costs of litigation) incurred by the United States and
    arising from or relating to such mining activities, including costs of
    mineral materials disposal, whether arising under the Comprehensive
    Environmental Response, Compensation, and Liability Act of 1980 (42
    U.S.C. 9601 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et
    seq.), or otherwise.

    SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.

        There are authorized to be appropriated such sums as may be
    necessary to carry out this title.

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

                    Subtitle B--Recurring General Provisions

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

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

    [[Page 112 STAT. 2236]]

    Sec. 3143. Relocation of National Atomic Museum, Albuquerque, New
               Mexico.
    Sec. 3144. Tritium production.

                            Subtitle D--Other Matters

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

              Subtitle A--National Security Programs Authorizations

    SEC. 3101. WEAPONS ACTIVITIES.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 1999 for weapons activities in
    carrying out programs necessary for national security in the amount of
    $4,511,600,000, to be allocated as follows:
                (1) Stockpile stewardship.--Funds are hereby authorized to
            be appropriated to the Department of Energy for fiscal year 1999
            for stockpile stewardship in carrying out weapons activities
            necessary for national security programs in the amount of
            $2,148,375,000, to be allocated as follows:
                        (A) For core stockpile stewardship, $1,591,375,000,
                    to be allocated as follows:
                              (i) For operation and maintenance,
                          $1,475,832,000.
                              (ii) For plant projects (including
                          maintenance, restoration, planning, construction,
                          acquisition, modification of facilities, and the
                          continuation of projects authorized in prior
                          years, and land acquisition related thereto),
                          $115,543,000, to be allocated as follows:
                                        Project 99-D-102, rehabilitation of
                                    maintenance facility, Lawrence Livermore
                                    National Laboratory, Livermore,
                                    California, $6,500,000.
                                        Project 99-D-103, isotope sciences
                                    facilities, Lawrence Livermore National
                                    Laboratory, Livermore, California,
                                    $4,000,000.
                                        Project 99-D-104, protection of real
                                    property (roof reconstruction, Phase
                                    II), Lawrence Livermore National
                                    Laboratory, Livermore, California,
                                    $7,300,000.
                                        Project 99-D-105, central health
                                    physics calibration facility, Los Alamos
                                    National Laboratory, Los Alamos, New
                                    Mexico, $3,900,000.

    [[Page 112 STAT. 2237]]

                                        Project 99-D-106, model validation
                                    and system certification test center,
                                    Sandia National Laboratories,
                                    Albuquerque, New Mexico, $1,600,000.
                                        Project 99-D-107, joint
                                    computational engineering laboratory,
                                    Sandia National Laboratories,
                                    Albuquerque, New Mexico, $1,800,000.
                                        Project 99-D-108, renovate existing
                                    roadways, Nevada Test Site, Nevada,
                                    $2,000,000.
                                        Project 97-D-102, dual-axis
                                    radiographic hydrotest facility, Los
                                    Alamos National Laboratory, Los Alamos,
                                    New Mexico, $36,000,000.
                                        Project 96-D-102, stockpile
                                    stewardship facilities revitalization,
                                    Phase VI, various locations,
                                    $20,423,000.
                                        Project 96-D-103, ATLAS, Los Alamos
                                    National Laboratory, Los Alamos, New
                                    Mexico, $6,400,000.
                                        Project 96-D-104, processing and
                                    environmental technology laboratory,
                                    Sandia National Laboratories,
                                    Albuquerque, New Mexico, $18,920,000.
                                        Project 96-D-105, contained firing
                                    facility addition, Lawrence Livermore
                                    National Laboratory, Livermore,
                                    California, $6,700,000.
                        (B) For inertial fusion, $498,000,000, to be
                    allocated as follows:
                              (i) For operation and maintenance,
                          $213,800,000.
                              (ii) For the following plant project
                          (including maintenance, restoration, planning,
                          construction, acquisition, and modification of
                          facilities, and land acquisition related thereto),
                          $284,200,000, to be allocated as follows:
                                        Project 96-D-111, national ignition
                                    facility, Lawrence Livermore National
                                    Laboratory, Livermore, California,
                                    $284,200,000.
                        (C) For technology partnership and education,
                    $59,000,000, to be allocated as follows:
                              (i) For technology partnership, $50,000,000.
                              (ii) For education, $9,000,000.
                (2) Stockpile management.--Funds are hereby authorized to be
            appropriated to the Department of Energy for fiscal year 1999
            for stockpile management in carrying out weapons activities
            necessary for national security programs in the amount of
            $2,113,225,000, to be allocated as follows:
                        (A) For operation and maintenance, $2,014,303,000.
                        (B) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $98,922,000, to be allocated as
                    follows:
                              Project 99-D-122, rapid reactivation, various
                          locations, $11,200,000.
                              Project 99-D-123, replace mechanical utility
                          systems, Y-12 Plant, Oak Ridge, Tennessee,
                          $1,900,000.
                              Project 99-D-125, replace boilers and
                          controls, Kansas City Plant, Kansas City,
                          Missouri, $1,000,000.

    [[Page 112 STAT. 2238]]

                              Project 99-D-127, stockpile management
                          restructuring initiative, Kansas City Plant,
                          Kansas City, Missouri, $13,700,000.
                              Project 99-D-128, stockpile management
                          restructuring initiative, Pantex Plant
                          consolidation, Amarillo, Texas, $1,108,000.
                              Project 99-D-132, stockpile management
                          restructuring initiative, nuclear material
                          safeguards and security upgrades project, Los
                          Alamos National Laboratory, Los Alamos, New
                          Mexico, $9,700,000.
                              Project 98-D-123, stockpile management
                          restructuring initiative, tritium facility
                          modernization and consolidation, Savannah River
                          Site, Aiken, South Carolina, $27,500,000.
                              Project 98-D-124, stockpile management
                          restructuring initiative, Y-12 Plant
                          consolidation, Oak Ridge, Tennessee, $10,700,000.
                              Project 97-D-122, nuclear materials storage
                          facility renovation, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $3,764,000.
                              Project 97-D-123, structural upgrades, Kansas
                          City Plant, Kansas City, Missouri, $6,400,000.
                              Project 96-D-122, sewage treatment quality
                          upgrade, Pantex Plant, Amarillo, Texas,
                          $3,700,000.
                              Project 95-D-102, chemistry and metallurgy
                          research building upgrades, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $5,000,000.
                              Project 93-D-122, life safety upgrades, Y-12
                          Plant, Oak Ridge, Tennessee, $3,250,000.
                (3) Program direction.--Funds are hereby authorized to be
            appropriated to the Department of Energy for fiscal year 1999
            for program direction in carrying out weapons activities
            necessary for national security programs in the amount of
            $250,000,000.

        (b) Adjustments.--
                (1) Construction.--The total amount authorized to be
            appropriated pursuant to paragraphs (1)(A)(ii), (1)(B)(ii), and
            (2)(B) of subsection (a) is the sum of the amounts authorized to
            be appropriated in those paragraphs, reduced by $13,600,000.
                (2) Non-construction.--The total amount authorized to be
            appropriated pursuant to paragraphs (1)(A)(i), (1)(B)(i),
            (1)(C), (2)(A), and (3) of subsection (a) is the sum of the
            amounts authorized to be appropriated in those paragraphs,
            reduced by $178,900,000, to be derived from use of prior year
            balances.

    SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 1999 for environmental
    restoration and waste management in carrying out programs necessary for
    national security in the amount of $5,446,143,000, to be allocated as
    follows:
                (1) Closure projects.--For closure projects carried out in
            accordance with section 3143 of the National Defense
            Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
            Stat. 2836; 42 U.S.C. 7274n) in the amount of $1,038,240,000.

    [[Page 112 STAT. 2239]]

                (2) Site project and completion.--For site project and
            completion in carrying out environmental restoration and waste
            management activities necessary for national security programs
            in the amount of $1,067,253,000, to be allocated as follows:
                        (A) For operation and maintenance, $868,090,000.
                        (B) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $199,163,000, to be allocated as
                    follows:
                              Project 99-D-402, tank farm support services,
                          F&H areas, Savannah River Site, Aiken, South
                          Carolina, $2,745,000.
                              Project 99-D-404, health physics
                          instrumentation laboratory, Idaho National
                          Engineering Laboratory, Idaho, $950,000.
                              Project 98-D-401, H-tank farm storm water
                          systems upgrade, Savannah River Site, Aiken, South
                          Carolina, $3,120,000.
                              Project 98-D-453, plutonium stabilization and
                          handling system for plutonium finishing plant,
                          Richland, Washington, $26,814,000.
                              Project 98-D-700, road rehabilitation, Idaho
                          National Engineering Laboratory, Idaho,
                          $7,710,000.
                              Project 97-D-450, Actinide packaging and
                          storage facility, Savannah River Site, Aiken,
                          South Carolina, $79,184,000.
                              Project 97-D-470, environmental monitoring
                          laboratory, Savannah River Site, Aiken, South
                          Carolina, $7,000,000.
                              Project 96-D-406, spent nuclear fuels canister
                          storage and stabilization facility, Richland,
                          Washington, $38,680,000.
                              Project 96-D-408, waste management upgrades,
                          Kansas City Plant, Kansas City, Missouri, and
                          Savannah River Site, Aiken, South Carolina,
                          $4,512,000.
                              Project 96-D-464, electrical and utility
                          systems upgrade, Idaho Chemical Processing Plant,
                          Idaho National Engineering Laboratory, Idaho,
                          $11,544,000.
                              Project 96-D-471, chlorofluorocarbon heating,
                          ventilation, and air conditioning and chiller
                          retrofit, Savannah River Site, Aiken, South
                          Carolina, $8,000,000.
                              Project 95-D-456, security facilities
                          consolidation, Idaho Chemical Processing Plant,
                          Idaho National Engineering Laboratory, Idaho,
                          $485,000.
                              Project 92-D-140, F&H canyon exhaust upgrades,
                          Savannah River Site, Aiken, South Carolina,
                          $3,667,000.
                              Project 86-D-103, decontamination and waste
                          treatment facility, Lawrence Livermore National
                          Laboratory, Livermore, California, $4,752,000.
                (3) Post-2006 completion.--For post-2006 project completion
            in carrying out environmental restoration and waste management
            activities necessary for national security programs in the
            amount of $2,744,451,000, to be allocated as follows:
                        (A) For operation and maintenance, $2,663,195,000.

    [[Page 112 STAT. 2240]]

                        (B) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $81,256,000, to be allocated as
                    follows:
                              Project 99-D-403, privatization phase I
                          infrastructure support, Richland, Washington,
                          $14,800,000.
                              Project 97-D-402, tank farm restoration and
                          safe operations, Richland, Washington,
                          $22,723,000.
                              Project 96-D-408, waste management upgrades,
                          Richland, Washington, $171,000.
                              Project 94-D-407, initial tank retrieval
                          systems, Richland, Washington, $32,860,000.
                              Project 93-D-187, high-level waste removal
                          from filled waste tanks, Savannah River Site,
                          Aiken, South Carolina, $10,702,000.
                (4) Science and technology.--For science and technology in
            carrying out environmental restoration and waste management
            activities necessary for national security programs in the
            amount of $250,000,000.
                (5) Program direction.--For program direction in carrying
            out environmental restoration and waste management activities
            necessary for national security programs in the amount of
            $346,199,000.

        (b) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1), (2)(A), (3)(A), (4), and (5) of subsection
    (a) is the sum of the amounts authorized to be appropriated in those
    paragraphs, reduced by $94,100,000, to be derived from use of prior year
    balances.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 1999 for other defense
    activities in carrying out programs necessary for national security in
    the amount of $1,716,160,000, to be allocated as follows:
                (1) Nonproliferation and national security.--For
            nonproliferation and national security, $699,300,000, to be
            allocated as follows:
                        (A) For verification and control technology,
                    $503,500,000, to be allocated as follows:
                              (i) For nonproliferation and verification
                          research and development, $210,000,000.
                              (ii) For arms control, $256,900,000.
                              (iii) For intelligence, $36,600,000.
                        (B) For nuclear safeguards and security,
                    $53,200,000.
                        (C) For security investigations, $30,000,000.
                        (D) For emergency management, $23,700,000.
                        (E) For program direction, $88,900,000.
                (2) Worker and community transition assistance.--For worker
            and community transition assistance, $40,000,000, to be
            allocated as follows:
                        (A) For worker and community transition,
                    $36,000,000.
                        (B) For program direction, $4,000,000.
                (3) Fissile materials control and disposition.--For fissile
            materials control and disposition, $168,960,000, to be allocated
            as follows:
                        (A) For operation and maintenance, $111,372,000.

    [[Page 112 STAT. 2241]]

                        (B) For program direction, $4,588,000.
                        (C) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land acquisition
                    related thereto), $53,000,000, to be allocated as
                    follows:
                              Project 99-D-141, pit disassembly and
                          conversion facility, various locations,
                          $25,000,000.
                              Project 99-D-143, mixed oxide fuel fabrication
                          facility, various locations, $28,000,000.
                (4) Environment, safety, and health.--For environment,
            safety, and health, defense, $89,000,000, to be allocated as
            follows:
                        (A) For the Office of Environment, Safety, and
                    Health (Defense), $84,231,000.
                        (B) For program direction, $4,769,000.
                (5) Office of hearings and appeals.--For the Office of
            Hearings and Appeals, $2,400,000.
                (6) International nuclear safety.--For international nuclear
            safety, $35,000,000.
                (7) Naval reactors.--For naval reactors, $681,500,000, to be
            allocated as follows:
                        (A) For naval reactors development, $661,400,000, to
                    be allocated as follows:
                              (i) For operation and maintenance,
                          $639,600,000.
                              (ii) For plant projects (including
                          maintenance, restoration, planning, construction,
                          acquisition, modification of facilities, and the
                          continuation of projects authorized in prior
                          years, and land acquisition related thereto),
                          $21,800,000, to be allocated as follows:
                                        GPN-101, general plant projects,
                                    various locations, $9,000,000.
                                        Project 98-D-200, site laboratory/
                                    facility upgrade, various locations,
                                    $7,000,000.
                                        Project 90-N-102, expended core
                                    facility dry cell project, Naval
                                    Reactors Facility, Idaho, $5,800,000.
                        (B) For program direction, $20,100,000.

        (b) Adjustment.--(1) The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in paragraphs (1) through (7) of subsection (a) reduced by
    $2,000,000.
        (2) The amount authorized to be appropriated pursuant to subsection
    (a)(1)(C) is reduced by $20,000,000 to reflect an offset provided by
    user organizations for security investigations.

    SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1999 for payment to the Nuclear Waste Fund
    established in section 302(c) of the Nuclear Waste Policy Act of 1982
    (42 U.S.C. 10222(c)) in the amount of $190,000,000.

    SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 1999 for privatization
    initiatives in carrying out environmental restoration

    [[Page 112 STAT. 2242]]

    and waste management activities necessary for national security programs
    in the amount of $286,857,000, to be allocated as follows:
                Project 99-PVT-1, remote handled transuranic waste
            transportation, Carlsbad, New Mexico, $19,605,000.
                Project 98-PVT-2, spent nuclear fuel dry storage, Idaho
            Falls, Idaho, $30,000,000.
                Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee,
            $50,000,000.
                Project 97-PVT-1, tank waste remediation system phase I,
            Hanford, Washington, $100,000,000.
                Project 97-PVT-2, advanced mixed waste treatment facility,
            Idaho Falls, Idaho, $87,252,000.

        (b) Adjustment.--The amount authorized to be appropriated in
    subsection (a) is the sum of the amounts authorized to be appropriated
    for the projects set forth in that subsection, reduced by $32,000,000
    for use of prior year balances of funds for defense environmental
    management privatization.

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--Until the Secretary of Energy submits to the
    congressional defense committees the report referred to in subsection
    (b) and a period of 30 days has elapsed after the date on which such
    committees receive the report, the Secretary may not use amounts
    appropriated pursuant to this title for any program--
                (1) in amounts that exceed, in a fiscal year--
                        (A) 110 percent of the amount authorized for that
                    program by this title; or
                        (B) $1,000,000 more than the amount authorized for
                    that program by this title; or
                (2) which has not been presented to, or requested of,
            Congress.

        (b) Report.--(1) The report referred to in subsection (a) is a
    report containing a full and complete statement of the action proposed
    to be taken and the facts and circumstances relied upon in support of
    such proposed action.
        (2) In the computation of the 30-day period under subsection (a),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (c) Limitations.--(1) In no event may the total amount of funds
    obligated pursuant to this title exceed the total amount authorized to
    be appropriated by this title.
        (2) Funds appropriated pursuant to this title may not be used for an
    item for which Congress has specifically denied funds.

    SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

        (a) In General.--The Secretary of Energy may carry out any
    construction project under the general plant projects authorized by this
    title if the total estimated cost of the construction project does not
    exceed $5,000,000.
        (b) Report to Congress.--If, at any time during the construction of
    any general plant project authorized by this title, the estimated cost
    of the project is revised because of unforeseen cost

    [[Page 112 STAT. 2243]]

    variations and the revised cost of the project exceeds $5,000,000, the
    Secretary shall immediately furnish a complete report to the
    congressional defense committees explaining the reasons for the cost
    variation.

    SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

        (a) In General.--(1) Except as provided in paragraph (2),
    construction on a construction project may not be started or additional
    obligations incurred in connection with the project above the total
    estimated cost, whenever the current estimated cost of the construction
    project, which is authorized by section 3101, 3102, or 3103, or which is
    in support of national security programs of the Department of Energy and
    was authorized by any previous Act, exceeds by more than 25 percent the
    higher of--
                (A) the amount authorized for the project; or
                (B) the amount of the total estimated cost for the project
            as shown in the most recent budget justification data submitted
            to Congress.

        (2) An action described in paragraph (1) may be taken if--
                (A) the Secretary of Energy has submitted to the
            congressional defense committees a report on the actions and the
            circumstances making such action necessary; and
                (B) a period of 30 days has elapsed after the date on which
            the report is received by the committees.

        (3) In the computation of the 30-day period under paragraph (2),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (b) Exception.--Subsection (a) shall not apply to any construction
    project which has a current estimated cost of less than $5,000,000.

    SEC. 3124. FUND TRANSFER AUTHORITY.

        (a) Transfer to Other Federal Agencies.--The Secretary of Energy may
    transfer funds authorized to be appropriated to the Department of Energy
    pursuant to this title to other Federal agencies for the performance of
    work for which the funds were authorized. Funds so transferred may be
    merged with and be available for the same purposes and for the same
    period as the authorizations of the Federal agency to which the amounts
    are transferred.
        (b) Transfer Within Department of Energy.--(1) Subject to paragraph
    (2), the Secretary of Energy may transfer funds authorized to be
    appropriated to the Department of Energy pursuant to this title between
    any such authorizations. Amounts of authorizations so transferred may be
    merged with and be available for the same purposes and for the same
    period as the authorization to which the amounts are transferred.
        (2) Not more than 5 percent of any such authorization may be
    transferred between authorizations under paragraph (1). No such
    authorization may be increased or decreased by more than five percent by
    a transfer under such paragraph.
        (c) Limitation.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide funds for items relating to
            activities necessary for national security programs that have a
            higher priority than the items from which the funds are
            transferred; and

    [[Page 112 STAT. 2244]]

                (2) may not be used to provide funds for an item for which
            Congress has specifically denied funds.

        (d) Notice to Congress.--The Secretary of Energy shall promptly
    notify the Committee on Armed Services of the Senate and the Committee
    on National Security of the House of Representatives of any transfer of
    funds to or from authorizations under this title.

    SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

        (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2)
    and except as provided in paragraph (3), before submitting to Congress a
    request for funds for a construction project that is in support of a
    national security program of the Department of Energy, the Secretary of
    Energy shall complete a conceptual design for that project.
        (2) If the estimated cost of completing a conceptual design for a
    construction project exceeds $3,000,000, the Secretary shall submit to
    Congress a request for funds for the conceptual design before submitting
    a request for funds for the construction project.
        (3) The requirement in paragraph (1) does not apply to a request for
    funds--
                (A) for a construction project the total estimated cost of
            which is less than $5,000,000; or
                (B) for emergency planning, design, and construction
            activities under section 3126.

        (b) Authority for Construction Design.--(1) Within the amounts
    authorized by this title, the Secretary of Energy may carry out
    construction design (including architectural and engineering services)
    in connection with any proposed construction project if the total
    estimated cost for such design does not exceed $600,000.
        (2) If the total estimated cost for construction design in
    connection with any construction project exceeds $600,000, funds for
    such design must be specifically authorized by law.

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

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

    [[Page 112 STAT. 2245]]

    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.

        (a) In General.--Except as provided in subsection (b), when so
    specified in an appropriations Act, amounts appropriated for operation
    and maintenance or for plant projects may remain available until
    expended.
        (b) Exception for Program Direction Funds.--Amounts appropriated for
    program direction pursuant to an authorization of appropriations in
    subtitle A shall remain available to be expended only until the end of
    fiscal year 2001.

    SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

        (a) Transfer Authority for Defense Environmental Management Funds.--
    The Secretary of Energy shall provide the manager of each field office
    of the Department of Energy with the authority to transfer defense
    environmental management funds from a program or project under the
    jurisdiction of the office to another such program or project.
        (b) Limitations.--(1) Only one transfer may be made to or from any
    program or project under subsection (a) in a fiscal year.
        (2) The amount transferred to or from a program or project under
    subsection (a) may not exceed $5,000,000 in a fiscal year.
        (3) A transfer may not be carried out by a manager of a field office
    under subsection (a) unless the manager determines that the transfer is
    necessary to address a risk to health, safety, or the environment or to
    assure the most efficient use of defense environmental management funds
    at the field office.
        (4) Funds transferred pursuant to subsection (a) may not be used for
    an item for which Congress has specifically denied funds or for a new
    program or project that has not been authorized by Congress.
        (c) Exemption From Reprogramming Requirements.--The requirements of
    section 3121 shall not apply to transfers of funds pursuant to
    subsection (a).
        (d) Notification.--The Secretary, acting through the Assistant
    Secretary of Energy for Environmental Management, shall notify Congress
    of any transfer of funds pursuant to subsection (a) not later than 30
    days after such transfer occurs.
        (e) Definitions.--In this section:
                (1) The term ``program or project'' means, with respect to a
            field office of the Department of Energy, any of the following:
                        (A) A program referred to or a project listed in
                    paragraph (2) or (3) of section 3102.
                        (B) A program or project not described in
                    subparagraph (A) that is for environmental restoration
                    or waste management activities necessary for national
                    security programs of the Department, that is being
                    carried out by the office, and for which defense
                    environmental management funds

    [[Page 112 STAT. 2246]]

                    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.

        (f ) Duration of Authority.--The managers of the field offices of
    the Department may exercise the authority provided under subsection (a)
    during the period beginning on October 1, 1998, and ending on September
    30, 1999.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    SEC. 3131. <<NOTE: 42 USC 7273c.>> PERMANENT EXTENSION OF FUNDING
                PROHIBITION RELATING TO INTERNATIONAL COOPERATIVE STOCKPILE
                STEWARDSHIP.

        Section 3133(a) of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 2036) is amended by striking out
    ``for fiscal year 1998'' and inserting in lieu thereof ``for any fiscal
    year''.

    SEC. 3132. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE
                DEPARTMENT OF DEFENSE.

        (a) Funds To Carry Out Certain Ballistic Missile Defense
    Activities.--Of the amounts authorized to be appropriated to the
    Department of Energy pursuant to section 3101, $30,000,000 shall be
    available for research, development, and demonstration activities to
    support the mission of the Ballistic Missile Defense Organization of the
    Department of Defense, including the following activities:
                (1) Technology development, concept demonstration, and
            integrated testing to improve reliability and reduce risk in
            hit-to-kill interceptors for missile defense.
                (2) Support for science and engineering teams to address
            technical problems identified by the Director of the Ballistic
            Missile Defense Organization as critical to acquisition of a
            theater missile defense capability.

        (b) Memorandum of Understanding.--The activities referred to in
    subsection (a) shall be carried out under the memorandum of
    understanding entered into by the Secretary of Energy and the Secretary
    of Defense for the use of national laboratories for ballistic missile
    defense programs, as required by section 3131 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
    2034).
        (c) Method of Funding.--Funds for activities referred to in
    subsection (a) may be provided--
                (1) by direct payment from funds available pursuant to
            subsection (a); or
                (2) in the case of such an activity carried out by a
            national laboratory but paid for by the Ballistic Missile
            Defense Organization, through a method under which the Secretary
            of Energy waives any requirement for the Department of Defense
            to pay any indirect expenses (including overhead and federal
            administrative charges) of the Department of Energy or its
            contractors.

    [[Page 112 STAT. 2247]]

    SEC. 3133. NONPROLIFERATION ACTIVITIES.

        (a) Initiatives for Proliferation Prevention.--Of the amount
    authorized to be appropriated by section 3103(a)(1)(A)(ii), up to
    $20,000,000 may be used for the Initiatives for Proliferation Prevention
    program.
        (b) Nuclear Cities Initiative.--(1) Funds authorized under this
    title may not be obligated or expended for the purpose of implementing
    the Nuclear Cities Initiative until--
                (A) the Secretary of Energy submits to the congressional
            defense committees the report described in paragraph (2); and
                (B) a period of 20 legislative days has expired following
            the date on which the report is submitted to Congress.

        (2) The Secretary of Energy shall prepare a report on the Nuclear
    Cities Initiative. The report shall describe--
                (A) the objectives of the initiative;
                (B) methods and processes for the implementation of the
            initiative;
                (C) a program timeline for the initiative with milestones;
            and
                (D) the funding requirements for the initiative through its
            completion.

        (3) For purposes of this section, the term ``Nuclear Cities
    Initiative'' means the initiative arising pursuant to the March 1998
    discussion between the Vice President of the United States and the Prime
    Minister of the Russian Federation and between the Secretary of Energy
    of the United States and the Minister of Atomic Energy of the Russian
    Federation.
        (4) For purposes of paragraph (1)(B), a legislative day is a day on
    which both Houses of Congress are in session.

    SEC. 3134. LICENSING OF CERTAIN MIXED OXIDE FUEL FABRICATION AND
                IRRADIATION FACILITIES.

        (a) License Requirement.--Section 202 of the Energy Reorganization
    Act of 1974 (42 U.S.C. 5842) is amended by adding at the end the
    following new paragraph:
                ``(5) Any facility under a contract with and for the account
            of the Department of Energy that is utilized for the express
            purpose of fabricating mixed plutonium-uranium oxide nuclear
            reactor fuel for use in a commercial nuclear reactor licensed
            under such Act, other than any such facility that is utilized
            for research, development, demonstration, testing, or analysis
            purposes.''.

         <<NOTE: 42 USC 5842 note.>> (b) Availability of Funds for Licensing
    by NRC.--Section 210 of the Department of Energy National Security and
    Military Applications of Nuclear Energy Authorization Act of 1981 (42
    U.S.C. 7272) shall not apply to any licensing activities required
    pursuant to section 202(5) of the Energy Reorganization Act of 1974 (42
    U.S.C. 5842), as added by subsection (a).

         <<NOTE: 42 USC 5842 note.>> (c) Applicability of Occupational
    Safety and Health Requirements to Activities Under License.--Any
    activities carried out under a license required pursuant to section
    202(5) of the Energy Reorganization Act of 1974 (42 U.S.C. 5842), as
    added by subsection (a), shall be subject to regulation under the
    Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.).

    [[Page 112 STAT. 2248]]

    SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF
                LEGACY NUCLEAR MATERIALS.

        The Secretary of Energy shall continue operations and maintain a
    high state of readiness at the F-canyon and H-canyon facilities at the
    Savannah River Site, Aiken, South Carolina, and shall provide technical
    staff necessary to operate and so maintain such facilities.

    SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY FUNDED RESEARCH
                AND DEVELOPMENT CENTERS TO PARTICIPATE IN MERIT-BASED
                TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAMS.

        (a) Authority.--Section 217(f )(1) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2695) is amended--
                (1) by inserting ``(A)'' after ``(1)'';
                (2) by inserting ``or of the Department of Energy'' after
            ``the Department of Defense''; and
                (3) by adding at the end the following new subparagraph:

        ``(B) A federally funded research and development center of the
    Department of Energy described in subparagraph (A) may respond to
    solicitations and announcements described in that subparagraph only for
    activities conducted by the center under contract with or on behalf of
    the Department of Defense.''.
        (b) Conforming Amendment.--Section 217(f )(2) of such Act is amended
    by inserting ``(A)'' after ``(1)''.

    SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES. <<NOTE: 42 USC
                7259a.>>

        (a) Research and Activities on Behalf of Non-Department Persons and
    Entities.--(1) The Secretary of Energy may conduct research and other
    activities referred to in paragraph (2) at facilities of the Department
    of Energy on behalf of other departments and agencies of the Government,
    agencies of State and local governments, and private persons and
    entities.
        (2) The research and other activities that may be conducted under
    paragraph (1) are those which the Secretary is authorized to conduct by
    law, including research and activities authorized under the following
    provisions of law:
                (A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
                (B) The Energy Reorganization Act of 1974 (42 U.S.C. 5811 et
            seq.).
                (C) The Federal Nonnuclear Energy Research and Development
            Act of 1974 (42 U.S.C. 5901 et seq.).

        (b) Charges.--(1) The Secretary shall impose on the department,
    agency, or person or entity for which research and other activities are
    carried out under subsection (a) a charge for such research and
    activities in carrying out such research and activities, which shall
    include--
                (A) the direct cost incurred in carrying out such research
            and activities; and
                (B) the overhead cost, including site-wide indirect costs,
            associated with such research and activities.

        (2)(A) Subject to subparagraph (B), the Secretary shall also impose
    on the department, agency, or person or entity concerned a Federal
    administrative charge (which includes any depreciation and imputed
    interest charges) in an amount not to exceed 3 percent

    [[Page 112 STAT. 2249]]

    of the full cost incurred in carrying out the research and activities
    concerned.
        (B) The Secretary may waive the imposition of the Federal
    administrative charge required by subparagraph (A) in the case of
    research and other activities conducted on behalf of small business
    concerns, institutions of higher education, non-profit entities, and
    State and local governments.
        (3) Not later than 2 years after the date of the enactment of this
    Act, the Secretary shall terminate any waiver of charges under section
    33 of the Atomic Energy Act of 1954 (42 U.S.C. 2053) that were made
    before such date, unless the Secretary determines that such waiver
    should be continued.
        (c) Pilot Program of Reduced Facility Overhead Charges.--(1) The
    Secretary may, with the cooperation of participating contractors of the
    contractor-operated facilities of the Department, carry out a pilot
    program under which the Secretary and such contractors reduce the
    facility overhead charges imposed under this section for research and
    other activities conducted under this section.
        (2) The Secretary shall carry out the pilot program at contractor-
    operated facilities selected by the Secretary in consultation with the
    contractors concerned.
        (3) The Secretary shall determine the facility overhead charges to
    be imposed under the pilot program at a facility based on a joint review
    by the Secretary and the contractor for the facility of all items
    included in the overhead costs of the facility in order to determine
    which items are appropriately incurred as facility overhead charges by
    the contractor in carrying out research and other activities at such
    facility under this section.
        (4) <<NOTE: Effective date. Termination date.>> The Secretary shall
    commence carrying out the pilot program under this subsection not later
    than October 1, 1999, and shall terminate the pilot program on September
    30, 2003.

        (5) <<NOTE: Reports.>> Not later than January 31, 2003, the
    Secretary shall submit to Congress an interim report on the results of
    the pilot program under this subsection. The report shall include any
    recommendations for the extension or expansion of the pilot program,
    including the establishment of multiple rates of overhead charges for
    various categories of persons and entities seeking research and other
    activities in contractor-operated facilities of the Department.

        (d) Applicability With Respect to User Fee Practice.--This section
    does not apply to the practice of the Department of Energy with respect
    to user fees at Department facilities.

    SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.

        (a) Target for Reduction of Costs.--The Secretary of Energy shall
    establish a target for the overhead and service center costs for the
    Project Hanford Management Contractor for fiscal year 1999 that is less
    than the established baseline for such costs for that fiscal year.
        (b) Use of Funds Resulting from Reduction.--If the actual overhead
    and service center costs for that contractor for fiscal year 1999 are
    less than the established baseline for such costs for that fiscal year,
    the Secretary, to the extent consistent with fiscal year 1999
    appropriations, shall use an amount equal to the difference between the
    baseline and such actual costs to perform additional clean-up work at
    Hanford in order to reduce the most threatening environmental risks at
    Hanford and to comply with

    [[Page 112 STAT. 2250]]

    applicable laws and regulations and the Tri-Party Agreement among the
    Department of Energy, the Environmental Protection Agency, and the State
    of Washington.

        (c) Review.--The Director of the Defense Contract Audit Agency shall
    review the Project Hanford Management Contract for compliance with cost
    accounting standards promulgated pursuant to section 26(f ) of the
    Office of Federal Procurement Policy Act (42 U.S.C. 422(f )). The review
    shall include the following:
                (1) An identification and assessment of methods for
            calculating overhead costs.
                (2) A description of activities the costs of which are
            allocated to--
                        (A) all accounts at the Hanford site other than
                    overhead accounts; or
                        (B) other contracts under which work is performed at
                    the Hanford site.
                (3) A description of service center costs, including--
                        (A) computer service and information management
                    costs and other support service costs; and
                        (B) costs of any activity which is paid for on a
                    per-unit basis.
                (4) An identification and assessment of all fees, awards, or
            other profit on overhead or service center costs that are not
            attributed to performance on a single project or contract.
                (5) An identification and assessment of all contracts
            awarded without competition.
                (6) An identification and assessment of any other costs that
            the Director considers necessary or appropriate to present a
            full and complete review of Hanford costs.

        (d) Report.--Not later than March 1, 1999, the Director of the
    Defense Contract Audit Agency shall submit to the congressional defense
    committees a report on the results of the review under subsection (c).

    SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

        (a) Establishment of Office of River Protection.--The Secretary of
    Energy shall establish an office at the Hanford Reservation, Richland,
    Washington, to be known as the ``Office of River Protection'' (in this
    section referred to as the ``Office'').
        (b) Management and Responsibilities of Office.--(1) The Office shall
    be headed by a senior official of the Department of Energy, who shall
    report to the Assistant Secretary of Energy for Environmental
    Management.
        (2) The head of the Office shall be responsible for managing all
    aspects of the Tank Waste Remediation System (also referred to as the
    Hanford Tank Farm operations), including those portions under
    privatization contracts, of the Department of Energy at Hanford.

        (c) Department Responsibilities.--The Secretary shall provide the
    manager of the Office with the resources and personnel necessary to
    manage the tank waste privatization program at Hanford in an efficient
    and streamlined manner.
        (d) Integrated Management Plan.--Not later than 90 days after the
    date of the enactment of this Act, the Secretary shall submit to the
    Committee on Armed Services of the Senate and the Committees on Commerce
    and on National Security of the House of Representatives an integrated
    management plan for all

    [[Page 112 STAT. 2251]]

    aspects of the Hanford Tank Farm operations, including the roles,
    responsibilities, and reporting relationships of the Office.
        (e) Report.--Not later than 2 years after the commencement of
    operations of the Office, the Secretary shall submit to the committees
    referred to in subsection (d) a report describing--
                (1) any progress in or resulting from the utilization of the
            Tank Waste Remediation System; and
                (2) any improvements in the management structure of the
            Department at Hanford with respect to the Tank Waste Remediation
            System as a result of the Office.

        (f ) Termination.--(1) The Office shall terminate 5 years after the
    commencement of operations under this section unless the Secretary
    determines that termination on that date would disrupt effective
    management of the Hanford Tank Farm operations.
        (2) The Secretary shall notify, in writing, the committees referred
    to in subsection (d) of a determination under paragraph (1).

    SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.

        Of the funds authorized to be appropriated or otherwise made
    available to the Department of Energy by section 3102, $1,500,000 shall
    be available for activities relating to the Hanford Health Information
    Network established pursuant to the authority in section 3138 of the
    National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
    510; 104 Stat. 1834), as amended by section 3138(b) of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 3087).

    SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY RESPONSE
                TRAINING PROGRAM.

        The Secretary of Energy may enter into partnership arrangements with
    Federal and non-Federal entities to share the costs of operating the
    hazardous materials management and hazardous materials emergency
    response training program authorized under section 3140(a) of the
    National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
    337; 108 Stat. 3088). Such arrangements may include the exchange of
    equipment and services, in lieu of payment for the training program.

    SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS
                NATIONAL LABORATORY, NEW MEXICO.

        (a) Availability of Funds.--Of the funds authorized to be
    appropriated or otherwise made available to the Department of Energy by
    this title, up to $5,000,000 shall be made available for payment by the
    Secretary of Energy to the educational foundation chartered to enhance
    educational activities in the public schools in the vicinity of Los
    Alamos National Laboratory, New Mexico (in this section referred to as
    the ``Foundation'').
        (b) Use of Funds.--(1) The Foundation shall utilize funds provided
    under subsection (a) as a contribution to an endowment fund for the
    Foundation.
        (2) The Foundation shall use the income generated from investments
    in the endowment fund that are attributable to the payment made under
    subsection (a) to fund programs to support the educational needs of
    children in public schools in the vicinity of Los Alamos National
    Laboratory.

    [[Page 112 STAT. 2252]]

    SEC. 3143. RELOCATION OF NATIONAL ATOMIC MUSEUM, ALBUQUERQUE, NEW
                MEXICO.

        The Secretary of Energy shall submit to the congressional defense
    committees a plan for the relocation of the National Atomic Museum in
    Albuquerque, New Mexico.

    SEC. 3144. TRITIUM PRODUCTION.

        The Secretary of Energy may not obligate or expend any funds
    authorized to be appropriated or otherwise available to the Department
    of Energy for fiscal year 1999 to implement a final decision on the
    technology to be utilized for tritium production, made pursuant to
    section 3135 of the National Defense Authorization Act for Fiscal Year
    1998 (Public Law 105-85; 111 Stat. 2037), until October 1, 1999.

                            Subtitle D--Other Matters

    SEC. 3151. STUDY AND PLAN RELATING TO WORKER AND COMMUNITY TRANSITION
                ASSISTANCE.

        (a) Study by the General Accounting Office.--
                (1) Study requirement.--The Comptroller General shall
            conduct a study on the effects of workforce restructuring plans
            for defense nuclear facilities developed pursuant to section
            3161 of the National Defense Authorization Act for Fiscal Year
            1993 (42 U.S.C. 7274h).
                (2) Matters covered by study.--The study shall cover the
            four-year period preceding the date of the enactment of this Act
            and shall include the following:
                        (A) An analysis of the number of jobs created by any
                    employee retraining, education, and reemployment
                    assistance and any community impact assistance provided
                    in each workforce restructuring plan developed pursuant
                    to section 3161 of the National Defense Authorization
                    Act for Fiscal Year 1993.
                        (B) An analysis of other benefits provided pursuant
                    to such plans, including any assistance provided to
                    community reuse organizations.
                        (C) A description of the funds expended, and the
                    funds obligated but not expended, pursuant to such plans
                    as of the date of the report.
                        (D) A description of the criteria used since October
                    23, 1992, in providing assistance pursuant to such
                    plans.
                        (E) A comparison of any similar benefits provided--
                              (i) pursuant to such a plan to employees whose
                          employment at the defense nuclear facility covered
                          by the plan is terminated; and
                              (ii) to employees whose employment at a
                          facility where more than 50 percent of the
                          revenues are derived from contracts with the
                          Department of Defense has been terminated as a
                          result of cancellation, termination, or completion
                          of contracts with the Department of Defense and
                          the employees whose employment is terminated
                          constitute more than 15 percent of the employees
                          at that facility.
                        (F) A comparison of--

    [[Page 112 STAT. 2253]]

                              (i) involuntary separation benefits provided
                          to employees of Department of Energy contractors
                          and subcontractors under such plans; and
                              (ii) involuntary separation benefits provided
                          to employees of the Federal Government.
                        (G) A comparison of costs to the Federal Government
                    (including costs of involuntary separation benefits)
                    for--
                              (i) involuntary separations of employees of
                          Department of Energy contractors and
                          subcontractors; and
                              (ii) involuntary separations of employees of
                          contractors and subcontractors of other Federal
                          Government departments and agencies.
                        (H) A description of the length of service and
                    hiring dates of employees of Department of Energy
                    contractors and subcontractors provided benefits under
                    such plans in the 2-year period preceding the date of
                    the enactment of this Act.
                (3) Report on study.--The Comptroller General shall submit a
            report to Congress on the results of the study not later than
            March 31, 1999.
                (4) Definition.--In this section, the term ``defense nuclear
            facility'' has the meaning provided the term ``Department of
            Energy defense nuclear facility'' in section 3163 of the
            National Defense Authorization Act for Fiscal Year 1993 (Public
            Law 102-484; 42 U.S.C. 7274j).

        (b) Plan for Termination of Worker and Community Transition
    Program.--Not later than July 1, 1999, the Secretary of Energy shall
    submit to the congressional defense committees a plan to terminate the
    Office of Worker and Community Transition. The plan shall include--
                (1) a description of how the authority of the Office would
            be terminated; and
                (2) a description of how the responsibility to manage
            downsizing of the contractor workforce of the Department of
            Energy would be transferred to other offices or programs within
            the Department.

    SEC. 3152. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN SCIENTIFIC,
                ENGINEERING, AND TECHNICAL PERSONNEL.

        Section 3161(c)(1) of the National Defense Authorization Act for
    Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by striking out
    ``September 30, 1999'' and inserting in lieu thereof ``September 30,
    2000''.

    SEC. 3153. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM USED BY
                DEPARTMENT OF ENERGY IN DEFENSE ENVIRONMENTAL MANAGEMENT
                PROGRAMS.

         <<NOTE: Reports.>> (a) Plan Requirement.--Not later than February
    1, 1999, the Secretary of Energy shall submit to Congress a report
    containing a plan to modify the Federal employment system used within
    the defense environmental management programs of the Department of
    Energy to allow for workforce restructuring in those programs.

        (b) Specified Elements of Plan.--The plan shall address strategies
    to recruit and hire--
                (1) individuals with a high degree of scientific and
            technical competence in the areas of nuclear and toxic waste
            remediation and environmental restoration; and

    [[Page 112 STAT. 2254]]

                (2) individuals with the necessary skills to manage large
            construction and environmental remediation projects.

        (c) Legislative Changes.--The plan shall include an identification
    of the provisions of Federal law that would need to be changed to allow
    the Secretary of Energy to restructure the Department of Energy defense
    environmental management workforce to hire individuals described in
    subsection (b), while staying within any numerical limitations required
    by law (including section 3161 of Public Law 103-337 (42 U.S.C. 7231
    note)) on employment of such individuals.

    SEC. 3154. DEPARTMENT OF ENERGY NUCLEAR MATERIALS COURIERS.

        (a) Maximum Age for Entry Into Nuclear Materials Courier Force.--
    Section 3307 of title 5, United States Code, is amended--
                (1) in subsection (a), by striking ``and (d)'' and inserting
            ``(d), (e), and (f )''; and
                (2) by adding at the end the following:

        ``(f ) The Secretary of Energy may determine and fix the maximum age
    limit for an original appointment to a position as a nuclear materials
    courier, as defined by section 8331(27) or 8401(33).''.
        (b) Definition for Purposes of Civil Service Retirement System.--
    Section 8331 of title 5, United States Code, is amended--
                (1) by striking ``and'' at the end of paragraph (25);
                (2) by striking the period at the end of paragraph (26) and
            inserting ``; and''; and
                (3) by adding at the end the following:
                ``(27) `Nuclear materials courier'--
                        ``(A) means an employee of the Department of Energy,
                    the duties of whose position are primarily to transport,
                    and provide armed escort and protection during transit
                    of, nuclear weapons, nuclear weapon components,
                    strategic quantities of special nuclear materials or
                    other materials related to national security; and
                        ``(B) includes an employee who is transferred
                    directly to a supervisory or administrative position
                    within the same Department of Energy organization, after
                    performing duties referred to in subparagraph (A) for at
                    least 3 years.''.

        (c) Deductions, Contributions, and Deposits Under CSRS.--(1)
    Subsection (a)(1) of section 8334 of title 5, United States Code, is
    amended by striking ``or member of the Capitol Police,'' and inserting
    ``member of the Capitol Police, or nuclear materials courier,''.
        (2) Subsection (c) of that section is amended by adding after the
    item for a Member of the Capitol Police the following new item:

    [[Page 112 STAT. 2255]]

    ``Nuclear materials courier...........  7.....................  October 1, 1977 to the day before the date of
                                                                     the enactment of the Strom Thurmond National
                                                                     Defense Authorization Act for Fiscal Year 1999.
                                            7.5...................  The date of the enactment of the Strom Thurmond
                                                                     National Defense Authorization Act for Fiscal
                                                                     Year 1999 to December 31, 1998.
                                            7.75..................  January 1, 1999 to December 31, 1999.
                                            7.9...................  January 1, 2000 to December 31, 2000.
                                            8.....................  January 1, 2001 to December 31, 2002.
                                            7.5...................  After December 31, 2002.''.

        (3) <<NOTE: 5 USC 8334 note.>> Notwithstanding subsection (a)(1) or
    (k)(1) of section 8334 of title 5, United States Code, or section
    7001(a) of Public Law 105-33, during the period beginning on the
    effective date provided for under subsection (n)(1) and ending on
    September 30, 2002, the Department of Energy shall deposit in the
    Treasury of the United States to the credit of the Civil Service
    Retirement and Disability Fund on behalf of each nuclear materials
    courier from whose basic pay a deduction is made under such subsection
    (a)(1) during that period an amount equal to 9.01 percent of such basic
    pay, in lieu of the agency contributions otherwise required under such
    subsection (a)(1) during that period.

        (d) Mandatory Separation Under CSRS.--Section 8335(b) of title 5,
    United States Code, is amended in the second sentence--
                (1) by inserting ``or nuclear materials courier'' after
            ``law enforcement officer''; and
                (2) by inserting ``or courier, as the case may be,'' after
            ``that officer''.

        (e) Immediate Retirement Under CSRS.--Section 8336(c)(1) of title 5,
    United States Code, is amended by striking ``or firefighter'' and
    inserting ``, firefighter, or nuclear materials courier''.
        (f ) Definition for Purposes of Federal Employees' Retirement
    System.--Section 8401 of title 5, United States Code, is amended--
                (1) by striking ``and'' at the end of paragraph (31);
                (2) by striking the period at the end of paragraph (32) and
            inserting ``; and''; and
                (3) by adding at the end the following:
                ``(33) `Nuclear materials courier' has the meaning given
            that term in section 8331(27).''.

        (g) Immediate Retirement Under FERS.--Section 8412(d) of title 5,
    United States Code, is amended by striking ``or firefighter'' each place
    it appears in paragraphs (1) and (2) and inserting ``firefighter, or
    nuclear materials courier''.
        (h) Computation of Basic Annuity Under FERS.--Section 8415(g) of
    title 5, United States Code, is amended by inserting ``nuclear materials
    courier,'' after ``firefighter,''.
        (i) Deductions and Contributions Under FERS.--(1) Section 8422(a)(3)
    of title 5, United States Code, is amended by adding after the item
    relating to a law enforcement officer, firefighter, member of the
    Capitol Police, or air traffic controller the following new item:

    [[Page 112 STAT. 2256]]

    ``Nuclear materials courier...........  7.....................  January 1, 1987 to the day before the date of
                                                                     the enactment of the Strom Thurmond National
                                                                     Defense Authorization Act for Fiscal Year 1999.
                                            7.5...................  The date of the enactment of the Strom Thurmond
                                                                     National Defense Authorization Act for Fiscal
                                                                     Year 1999 to December 31, 1998.
                                            7.75..................  January 1, 1999 to December 31, 1999.
                                            7.9...................  January 1, 2000 to December 31, 2000.
                                            8.....................  January 1, 2001 to December 31, 2001.
                                            7.5...................  After December 31, 2002.''.

        (2) <<NOTE: 5 USC 8422 note.>> Contributions under subsections (a)
    and (b) of section 8423 of title 5, United States Code, shall not be
    reduced as a result of that portion of the amendment made by paragraph
    (1) requiring employee deductions at a rate in excess of 7.5 percent for
    the period beginning on January 1, 1999, and ending on December 31,
    2002.

        ( j) Agency Contributions Under FERS.--Paragraphs (1)(B)(i) and
    (3)(A) of section 8423(a) of title 5, United States Code, are each
    amended by inserting ``nuclear materials couriers,'' after
    ``firefighters,''.
        (k) Mandatory Separation Under FERS.--Section 8425(b) of title 5,
    United States Code, is amended by inserting ``or nuclear materials
    courier'' after ``law enforcement officer'' both places it appears in
    the second sentence.
         <<NOTE: 5 USC 8348 note.>> (l) Payments.--(1) The Department of
    Energy shall pay into the Civil Service Retirement and Disability Fund
    an amount determined by the Director of the Office of Personnel
    Management to be necessary to reimburse the Fund for any estimated
    increase in the unfunded liability of the Fund resulting from the
    amendments related to the Civil Service Retirement System under this
    section, and for any estimated increase in the supplemental liability of
    the Fund resulting from the amendments related to the Federal Employees
    Retirement System under this section.

        (2) The Department shall pay the amount so determined in five equal
    annual installments with interest computed at the rate used in the most
    recent valuation of the Federal Employees Retirement System.
        (3) The Department shall make payments under this subsection from
    amounts available for weapons activities of the Department.
         <<NOTE: 5 USC 8331 note.>> (m) Applicability.--Subsections (b)
    through (l) shall apply only to an individual who is employed as a
    nuclear materials courier, as defined by section 8331(27) or 8401(33) of
    title 5, United States Code (as amended by this section), after the
    later of--
                (1) September 30, 1998; or
                (2) the date of the enactment of this Act.

         <<NOTE: 5 USC 8331 note.>> (n) Effective Dates.--(1) Except as
    provided in paragraph (2), the amendments made by this section shall
    take effect at the beginning of the first pay period that begins after
    the later of--
                (A) October 1, 1998; or
                (B) the date of the enactment of this Act.

    [[Page 112 STAT. 2257]]

        (2)(A) The amendments made by subsection (a) shall take effect on
    the date of the enactment of this Act.
        (B) The amendments made by subsections (d) and (k) shall take effect
    1 year after the date of the enactment of this Act.

    SEC. 3155. INCREASE IN MAXIMUM RATE OF PAY FOR SCIENTIFIC, ENGINEERING,
                AND TECHNICAL PERSONNEL RESPONSIBLE FOR SAFETY AT DEFENSE
                NUCLEAR FACILITIES.

        Section 3161(a)(2) of the National Defense Authorization Act for
    Fiscal Year 1995 (Public Law 103-337; 42 U.S.C. 7231 note) is amended by
    striking out ``level IV of the Executive Schedule under section 5315''
    and inserting in lieu thereof ``level III of the Executive Schedule
    under section 5314''.

    SEC. 3156. <<NOTE: 5 USC 5597 note.>> EXTENSION OF AUTHORITY OF
                DEPARTMENT OF ENERGY TO PAY VOLUNTARY SEPARATION INCENTIVE
                PAYMENTS.

        (a) Extension.--Notwithstanding subsection (c)(2)(D) of section 663
    of the Treasury, Postal Service, and General Government Appropriations
    Act, 1997 (Public Law 104-208; 110 Stat. 3009-383; 5 U.S.C. 5597 note),
    the Department of Energy may pay voluntary separation incentive payments
    to qualifying employees who voluntarily separate (whether by retirement
    or resignation) before January 1, 2001.
        (b) Exercise of Authority.--The Department shall pay voluntary
    separation incentive payments under subsection (a) in accordance with
    the provisions of such section 663.

    SEC. 3157. REPEAL OF FISCAL YEAR 1998 STATEMENT OF POLICY ON STOCKPILE
                STEWARDSHIP PROGRAM.

        Section 3156 of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 2045; 42 U.S.C. 2121 note) is
    repealed.

    SEC. 3158. REPORT ON STOCKPILE STEWARDSHIP CRITERIA. <<NOTE: 42 USC 2121
                note.>>

        (a) Requirement for Criteria.--The Secretary of Energy shall develop
    clear and specific criteria for judging whether the science-based tools
    being used by the Department of Energy for determining the safety and
    reliability of the nuclear weapons stockpile are performing in a manner
    that will provide an adequate degree of certainty that the stockpile is
    safe and reliable.
        (b) Coordination With Secretary of Defense.--The Secretary of
    Energy, in developing the criteria required by subsection (a), shall
    coordinate with the Secretary of Defense.
        (c) Report.--Not later than March 1, 2000, the Secretary of Energy
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the efforts by the Department of Energy to develop the criteria
    required by subsection (a). The report shall include--
                (1) a description of the information needed to determine
            that the nuclear weapons stockpile is safe and reliable and the
            relationship of the science-based tools to the collection of
            that information; and
                (2) a description of the criteria required by subsection (a)
            to the extent they have been developed as of the date of the
            submission of the report.

    [[Page 112 STAT. 2258]]

    SEC. 3159. <<NOTE: 42 USC 2121 note.>> PANEL TO ASSESS THE RELIABILITY,
                SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR STOCKPILE.

         <<NOTE: Contracts.>> (a) Requirement for Panel.--The Secretary of
    Defense, in consultation with the Secretary of Energy, shall enter into
    a contract with a federally funded research and development center to
    establish a panel for the assessment of the certification process for
    the reliability, safety, and security of the United States nuclear
    stockpile.

        (b) Composition and Administration of Panel.--(1) The panel shall
    consist of private citizens of the United States with knowledge and
    expertise in the technical aspects of design, manufacture, and
    maintenance of nuclear weapons.
        (2) The federally funded research and development center shall be
    responsible for establishing appropriate procedures for the panel,
    including selection of a panel chairman.
        (c) Duties of Panel.--Each year the panel shall review and assess
    the following:
                (1) The annual certification process, including the
            conclusions and recommendations resulting from the process, for
            the safety, security, and reliability of the nuclear weapons
            stockpile of the United States, as carried out by the directors
            of the national weapons laboratories.
                (2) The long-term adequacy of the process of certifying the
            safety, security, and reliability of the nuclear weapons
            stockpile of the United States.
                (3) The adequacy of the criteria established by the
            Secretary of Energy pursuant to section 3158 for achieving the
            purposes for which those criteria are established.

        (d) Report.--Not later than October 1 of each year, beginning with
    1999, the panel shall submit to the Committee on Armed Services of the
    Senate and the Committee on National Security of the House of
    Representatives a report setting forth its findings and conclusions
    resulting from the review and assessment carried out for the year
    covered by the report. The report shall be submitted in classified and
    unclassified form.
        (e) Cooperation of Other Agencies.--(1) The panel may secure
    directly from the Department of Energy, the Department of Defense, or
    any of the national weapons laboratories or plants or any other Federal
    department or agency information that the panel considers necessary to
    carry out its duties.
        (2) For carrying out its duties, the panel shall be provided full
    and timely cooperation by the Secretary of Energy, the Secretary of
    Defense, the Commander of United States Strategic Command, the Directors
    of the Los Alamos National Laboratory, the Lawrence Livermore National
    Laboratory, the Sandia National Laboratories, the Savannah River Site,
    the Y-12 Plant, the Pantex Facility, and the Kansas City Plant, and any
    other official of the United States that the chairman of the panel
    determines as having information described in paragraph (1).
        (3) The Secretary of Energy and the Secretary of Defense shall each
    designate at least one officer or employee of the Department of Energy
    and the Department of Defense, respectively, to serve as a liaison
    officer between the department and the panel.
        (f ) Funding.--The Secretary of Defense and the Secretary of Energy
    shall each contribute 50 percent of the amount of funds that are
    necessary for the panel to carry out its duties. Funds available for the
    Department of Energy for atomic energy defense

    [[Page 112 STAT. 2259]]

    activities shall be available for the Department of Energy contribution.
        (g) Termination of Panel.--The panel shall terminate three years
    after the date of the appointment of the member designated as chairman
    of the panel.
        (h) Initial Implementation.--The Secretary of Defense shall enter
    into the contract required under subsection (a) not later than 60 days
    after the date of the enactment of this Act. The panel shall convene its
    first meeting not later than 30 days after the date as of which all
    members of the panel have been appointed.

    SEC. 3160. INTERNATIONAL COOPERATIVE INFORMATION EXCHANGE.

        (a) Findings.--Congress finds the following:
                (1) Currently in the post-cold war world, there are new
            opportunities to facilitate international political and
            scientific cooperation on cost-effective, advanced, and
            innovative nuclear management technologies.
                (2) There is increasing public interest in monitoring and
            remediation of nuclear waste.
                (3) It is in the best interest of the United States to
            explore and develop options with the international community to
            facilitate the exchange of evolving advanced nuclear wastes
            technologies.

        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of Energy, in consultation with the Secretary of State, the
    Secretary of Defense, the Administrator of the Environmental Protection
    Agency, and other officials as appropriate, should prepare and submit to
    the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report containing
    the following:
                (1) An assessment of whether the United States should
            encourage the establishment of an international project to
            facilitate the international exchange of information (including
            costs data) relating to nuclear waste technologies, including
            technologies for solid and liquid radioactive wastes and
            contaminated soils and sediments.
                (2) An assessment of whether such a project could be funded
            privately through industry, public interest, and scientific
            organizations and administered by an international
            nongovernmental organization, with operations in the United
            States, Russia, and other countries that have an interest in
            developing such technologies.
                (3) A description of the Federal programs that facilitate
            the exchange of such information and of any added benefit of
            consolidating such programs into such a project.
                (4) Recommendations for any legislation that the Secretary
            of Energy believes would be required to enable such a project to
            be undertaken.

    SEC. 3161. <<NOTE: 50 USC 435 note.>> PROTECTION AGAINST INADVERTENT
                RELEASE OF RESTRICTED DATA AND FORMERLY RESTRICTED DATA.

        (a) Plan for Protection Against Release.--The Secretary of Energy
    and the Archivist of the United States shall, after consultation with
    the members of the National Security Council and in consultation with
    the Secretary of Defense and the heads of other appropriate Federal
    agencies, develop a plan to prevent the

    [[Page 112 STAT. 2260]]

    inadvertent release of records containing Restricted Data or Formerly
    Restricted Data during the automatic declassification of records under
    Executive Order No. 12958 (50 U.S.C. 435 note).
        (b) Plan Elements.--The plan under subsection (a) shall include the
    following:
                (1) The actions to be taken in order to ensure that records
            subject to Executive Order No. 12958 are reviewed on a page-by-
            page basis for Restricted Data and Formerly Restricted Data
            unless they have been determined to be highly unlikely to
            contain Restricted Data or Formerly Restricted Data.
                (2) The criteria and process by which documents are
            determined to be highly unlikely to contain Restricted Data or
            Formerly Restricted Data.
                (3) The actions to be taken in order to ensure proper
            training, supervision, and evaluation of personnel engaged in
            declassification under that Executive order so that such
            personnel recognize Restricted Data and Formerly Restricted
            Data.
                (4) The extent to which automated declassification
            technologies will be used under that Executive order to protect
            Restricted Data and Formerly Restricted Data from inadvertent
            release.
                (5) Procedures for periodic review and evaluation by the
            Secretary of Energy, in consultation with the Director of the
            Information Security Oversight Office of the National Archives
            and Records Administration, of compliance by Federal agencies
            with the plan.
                (6) Procedures for resolving disagreements among Federal
            agencies regarding declassification procedures and decisions
            under the plan.
                (7) The funding, personnel, and other resources required to
            carry out the plan.
                (8) A timetable for implementation of the plan.

        (c) Limitation on Declassification of Certain Records.--(1)
    Effective on the date of the enactment of this Act and except as
    provided in paragraph (3), a record referred to in subsection (a) may
    not be declassified unless the agency having custody of the record
    reviews the record on a page-by-page basis to ensure that the record
    does not contain Restricted Data or Formerly Restricted Data.
        (2) Any record determined as a result of a review under paragraph
    (1) to contain Restricted Data or Formerly Restricted Data may not be
    declassified until the Secretary of Energy, in conjunction with the head
    of the agency having custody of the record, determines that the document
    is suitable for declassification.
        (3) After the date occurring 60 days after the submission of the
    plan required by subsection (a) to the committees referred to in
    paragraphs (1) and (2) of subsection (d), the requirement under
    paragraph (1) to review a record on a page-by-page basis shall not apply
    in the case of a record determined, under the actions specified in the
    plan pursuant to subsection (b)(1), to be a record that is highly
    unlikely to contain Restricted Data or Formerly Restricted Data.
        (d) Submission of Plan.--The Secretary of Energy shall submit the
    plan required under subsection (a) to the following:
                (1) The Committee on Armed Services of the Senate.
                (2) The Committee on National Security of the House of
            Representatives.

    [[Page 112 STAT. 2261]]

                (3) The Assistant to the President for National Security
            Affairs.

        (e) Submission of Reviews.--The Secretary of Energy shall, on a
    periodic basis, submit a summary of the results of the periodic reviews
    and evaluations specified in the plan pursuant to subsection (b)(4) to
    the committees and Assistant to the President specified in subsection
    (d).
        (f ) Report and Notification Regarding Inadvertent Releases.--(1)
    The Secretary of Energy shall submit to the committees and Assistant to
    the President specified in subsection (d) a report on inadvertent
    releases of Restricted Data or Formerly Restricted Data under Executive
    Order No. 12958 that occurred before the date of the enactment of this
    Act.
        (2) Not later than 30 days after any such inadvertent release
    occurring after the date of the enactment of this Act, the Secretary of
    Energy shall notify the committees and Assistant to the President
    specified in subsection (d) of such releases.
        (g) Definition.--In this section, the term ``Restricted Data'' has
    the meaning given that term in section 11 y. of the Atomic Energy Act of
    1954 (42 U.S.C. 2014(y)).

    SEC. 3162. SENSE OF CONGRESS REGARDING TREATMENT OF FORMERLY UTILIZED
                SITES REMEDIAL ACTION PROGRAM UNDER A NONDEFENSE
                DISCRETIONARY BUDGET FUNCTION.

        It is the sense of Congress that the Office of Management and Budget
    should, beginning with fiscal year 2000, transfer the Formerly Utilized
    Sites Remedial Action Program from the National Defense budget function
    (budget function 050) to a nondefense discretionary budget function.

    SEC. 3163. REPORTS RELATING TO TRITIUM PRODUCTION.

        (a) Report on Tritium Production Technology Options.--(1) The
    Secretary of Defense, in consultation with the Secretary of Energy,
    shall establish a task force of the Defense Science Board to examine
    tritium production technology options.
        (2) The task force shall examine the following issues:
                (A) The risk associated with the design, construction,
            operation, and cost of each option for tritium production under
            consideration.
                (B) The implications for nuclear weapons proliferation of
            each such option.
                (C) The extent to which each such option contributes to the
            capability of the Government to reliably meet the national
            defense requirements of the United States.
                (D) Any other factors that the Secretary of Defense or the
            Secretary of Energy considers appropriate.

        (3) The task force shall submit to the Secretary of Defense and the
    Secretary of Energy a report on the results of its examination. The
    Secretaries shall submit the report to Congress not later than June 30,
    1999.
        (b) Report on Test Program for Tritium Production at Watts Bar.--(1)
    The Secretary of Energy shall submit to the congressional defense
    committees a report on the results of the test program at the Watts Bar
    Nuclear Station, Tennessee, after the test program is completed and the
    results of the program are evaluated. The report shall include--

    [[Page 112 STAT. 2262]]

                (A) data on the performance of the test rods, including any
            leakage of tritium from the test rods;
                (B) the amount of tritium produced during the test;
                (C) the performance of the reactor during the test; and
                (D) any other technical findings resulting from the test.

        (2) The Secretary of Energy shall submit to the congressional
    defense committees an interim report on the test program not later than
    60 days after the test rods are removed from the Watts Bar reactor.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 1999,
    $17,500,000 for the operation of the Defense Nuclear Facilities Safety
    Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
    et seq.).

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

    SEC. 3301. DEFINITIONS. <<NOTE: 50 USC 98d note.>>

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

    SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

        (a) Obligation of Stockpile Funds.--During fiscal year 1999, the
    National Defense Stockpile Manager may obligate up to $83,000,000 of the
    funds in the National Defense Stockpile Transaction Fund for the
    authorized uses of such funds under section 9(b)(2) of the Strategic and
    Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)), including the
    disposal of hazardous materials that are environmentally sensitive.
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection (a)
    if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date on which Congress receives the
    notification.

    [[Page 112 STAT. 2263]]

        (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.>> AUTHORITY TO DISPOSE OF CERTAIN
                MATERIALS IN NATIONAL DEFENSE STOCKPILE.

        (a) Disposal Required.--Subject to subsection (c), the President
    shall dispose of materials contained in the National Defense Stockpile
    and specified in the table in subsection (b) so as to result in receipts
    to the United States in the amount of--
                (1) $105,000,000 by the end of fiscal year 1999;
                (2) $460,000,000 by the end of fiscal year 2002;
                (3) $555,000,000 by the end of fiscal year 2003; and
                (4) $590,000,000 by the end of fiscal year 2005.

        (b) Limitation on Disposal Quantity.--The total quantities of
    materials authorized for disposal by the President under subsection (a)
    may not exceed the amounts set forth in the following table:

                         Authorized Stockpile Disposals
    ------------------------------------------------------------------------
       Material for disposal                              Quantity
    ------------------------------------------------------------------------
    Bauxite Refractory........................  29,000 long calcined ton
    Beryllium Metal...........................  100 short tons
    Chromite Chemical.........................  34,000 short dry tons
    Chromite Refractory.......................  159,000 short dry tons
    Chromium Ferroalloy.......................  125,000 short tons
    Columbium Carbide Powder..................  21,372 pounds of contained
                                                 Columbium
    Columbium Concentrates....................  1,733,454 pounds of
                                                 contained Columbium
    Columbium Ferro...........................  249,396 pounds of contained
                                                 Columbium
    Columbium Metal--Ingots...................  161,123 pounds of contained
                                                 Columbium
    Diamond, Stones...........................  3,000,000 carats
    Germanium Metal...........................  28,198 kilograms
    Graphite Natural Ceylon Lump..............  5,492 short tons
    Indium....................................  14,248 troy ounces
    Mica Muscovite Block......................  301,000 pounds
    Mica Phlogopite Block.....................  130,745 pounds
    Platinum..................................  439,887 troy ounces
    Platinum--Iridium.........................  4,450 troy ounces
    Platinum--Palladium.......................  750,000 troy ounces
    Tantalum Carbide Powder...................  22,688 pounds of contained
                                                 Tantalum
    Tantalum Metal Ingots.....................  125,000 pounds of contained
                                                 Tantalum
    Tantalum Metal Powder.....................  125,000 pounds of contained
                                                 Tantalum
    Tantalum Minerals.........................  1,751,364 pounds of
                                                 contained Tantalum
    Tantalum Oxide............................  122,730 pounds of contained
                                                 Tantalum
    Tungsten Carbide Powder...................  2,032,896 pounds of
                                                 contained Tungsten
    Tungsten Ferro............................  2,024,143 pounds of
                                                 contained Tungsten
    Tungsten Metal Powder.....................  1,898,009 pounds of
                                                 contained Tungsten

    [[Page 112 STAT. 2264]]

    Tungsten Ores & Concentrates..............  76,358,235 pounds of
                                                 contained Tungsten
    ------------------------------------------------------------------------

        (c) Minimization of Disruption and Loss.--The President may not
    dispose of materials under subsection (a) to the extent that the
    disposal will result in--
                (1) undue disruption of the usual markets of producers,
            processors, and consumers of the materials proposed for
            disposal; or
                (2) avoidable loss to the United States.

        (d) Treatment of Receipts.--Notwithstanding section 9 of the
    Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds
    received as a result of the disposal of materials authorized for
    disposal under subsection (a) shall be treated as follows:
                (1) The following amounts shall be transferred to the
            Secretary of Health and Human Services, to be credited in the
            manner determined by the Secretary to the Federal Hospital
            Insurance Trust Fund and the Federal Supplementary Medical
            Insurance Trust Fund:
                        (A) $3,000,000 during fiscal year 1999.
                        (B) $22,000,000 during fiscal year 2000.
                        (C) $28,000,000 during fiscal year 2001.
                        (D) $31,000,000 during fiscal year 2002.
                        (E) $8,000,000 during fiscal year 2003.
                (2) The balance of the funds received shall be deposited
            into the general fund of the Treasury.

        (e) Relationship to Other Disposal Authority.--The disposal
    authority provided in subsection (a) is new disposal authority and is in
    addition to, and shall not affect, any other disposal authority provided
    by law regarding the materials specified in such subsection.
        (f ) Authorization of Sale.--The authority provided by this section
    to dispose of materials contained in the National Defense Stockpile so
    as to result in receipts of $100,000,000 of the amount specified for
    fiscal year 1999 in subsection (a) by the end of that fiscal year shall
    be effective only to the extent provided in advance in appropriation
    Acts.

    SEC. 3304. USE OF STOCKPILE FUNDS FOR CERTAIN ENVIRONMENTAL REMEDIATION,
                RESTORATION, WASTE MANAGEMENT, AND COMPLIANCE ACTIVITIES.

        Section 9(b)(2) of the Strategic and Critical Materials Stock Piling
    Act (50 U.S.C. 98h(b)(2)) is amended--
                (1) by redesignating subparagraphs (J) and (K) as
            subparagraphs (K) and (L), respectively; and
                (2) by inserting after subparagraph (I) the following new
            subparagraph (J):
                ``(J) Performance of environmental remediation, restoration,
            waste management, or compliance activities at locations of the
            stockpile that are required under a Federal law or are
            undertaken by the Government under an administrative decision or
            negotiated agreement.''.

    [[Page 112 STAT. 2265]]

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

    SEC. 3401. DEFINITIONS. <<NOTE: 10 USC 7420 note.>>

        In this title:
                (1) The term ``naval petroleum reserves'' has the meaning
            given the term in section 7420(2) of title 10, United States
            Code.
                (2) The term ``Naval Petroleum Reserve Numbered 2'' means
            the naval petroleum reserve, commonly referred to as the Buena
            Vista unit, that is located in Kern County, California, and was
            established by Executive order of the President, dated December
            13, 1912.
                (3) The term ``Naval Petroleum Reserve Numbered 3'' means
            the naval petroleum reserve, commonly referred to as the Teapot
            Dome unit, that is located in the State of Wyoming and was
            established by Executive order of the President, dated April 30,
            1915.
                (4) The term ``Oil Shale Reserve Numbered 2'' means the
            naval petroleum reserve that is located in the State of Utah and
            was established by Executive order of the President, dated
            December 6, 1916.
                (5) The term ``antitrust laws'' has the meaning given the
            term in section 1(a) of the Clayton Act (15 U.S.C. 12(a)),
            except that the term also includes--
                        (A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.;
                    commonly known as the Robinson-Patman Act); and
                        (B) section 5 of the Federal Trade Commission Act
                    (15 U.S.C. 45), to the extent that such section applies
                    to unfair methods of competition.
                (6) The term ``petroleum'' has the meaning given the term in
            section 7420(3) of title 10, United States Code.

    SEC. 3402. <<NOTE: 10 USC 7420 note.>> AUTHORIZATION OF APPROPRIATIONS.

        (a) Amount.--There are hereby authorized to be appropriated to the
    Secretary of Energy $22,500,000 for fiscal year 1999 for the purpose of
    carrying out--
                (1) activities under chapter 641 of title 10, United States
            Code, relating to the naval petroleum reserves;
                (2) closeout activities at Naval Petroleum Reserve Numbered
            1 upon the sale of that reserve under subtitle B of title XXXIV
            of the National Defense Authorization Act for Fiscal Year 1996
            (Public Law 104-106; 10 U.S.C. 7420 note); and
                (3) activities under this title relating to the disposition
            of Naval Petroleum Reserve Numbered 2, Naval Petroleum Reserve
            Numbered 3, and Oil Shale Reserve Numbered 2.

        (b) Period of Availability.--Funds appropriated pursuant to the
    authorization of appropriations in subsection (a) shall remain available
    until expended.

    [[Page 112 STAT. 2266]]

    SEC. 3403. <<NOTE: 10 USC 7420 note.>> DISPOSAL OF NAVAL PETROLEUM
                RESERVE NUM-
                BERED 2.

        (a) Disposal of Ford City Lots Authorized.--(1) Subject to section
    3406, the Secretary of Energy may dispose of the portion of Naval
    Petroleum Reserve Numbered 2 that is located within the town lots in
    Ford City, California, which are identified as ``Drill Sites Numbered
    3A, 4, 6, 9A, 20, 22, 24, and 26'' and described in the document
    entitled ``Ford City Drill Site Locations--NPR-2,'' and accompanying
    maps on file in the office of the Deputy Assistant Secretary for Naval
    Petroleum and Oil Shale Reserves of the Department of Energy.
        (2) The Secretary of Energy shall carry out the disposal authorized
    by paragraph (1) by competitive sale or lease consistent with commercial
    practices, by transfer to another Federal agency or a public or private
    entity, or by such other means as the Secretary considers appropriate.
    Any competitive sale or lease under this subsection shall provide for
    the disposal of all right, title, and interest of the United States in
    the property to be conveyed. The Secretary of Energy may use the
    authority provided by the Act of June 14, 1926 (43 U.S.C. 869 et seq.;
    commonly known as the Recreation and Public Purposes Act), in the same
    manner and to the same extent as the Secretary of the Interior, to
    dispose of the portion of Naval Petroleum Reserve Numbered 2 described
    in paragraph (1).
        (3) Section 2696(a) of title 10, United States Code, regarding the
    screening of real property for further Federal use before disposal,
    shall apply to the disposal authorized by paragraph (1).
        (b) Transfer of Administrative Jurisdiction Authorized.--(1) The
    Secretary of Energy shall continue to administer Naval Petroleum Reserve
    Numbered 2 (other than the portion of the reserve authorized for
    disposal under subsection (a)) in accordance with chapter 641 of title
    10, United States Code, until such time as the Secretary makes a
    determination to abandon oil and gas operations in Naval Petroleum
    Reserve Numbered 2 in accordance with commercial operating practices.
        (2) After oil and gas operations are abandoned in Naval Petroleum
    Reserve Numbered 2, the Secretary of Energy may transfer to the
    Secretary of the Interior administrative jurisdiction and control over
    all public domain lands included within Naval Petroleum Reserve Numbered
    2 (other than the portion of the reserve authorized for disposal under
    subsection (a)) for management in accordance with the general land laws.
        (c) Relationship to Antitrust Laws.--This section does not modify,
    impair, or supersede the operation of the antitrust laws.

    SEC. 3404. <<NOTE: 10 USC 7420 note.>> DISPOSAL OF NAVAL PETROLEUM
                RESERVE NUM-
                BERED 3.

        (a) Administration Pending Termination of Operations.--The Secretary
    of Energy shall continue to administer Naval Petroleum Reserve Numbered
    3 in accordance with chapter 641 of title 10, United States Code, until
    such time as the Secretary makes a determination to abandon oil and gas
    operations in Naval Petroleum Reserve Numbered 3 in accordance with
    commercial operating practices.
        (b) Disposal Authorized.--After oil and gas operations are abandoned
    in Naval Petroleum Reserve Numbered 3, the Secretary of Energy may
    dispose of the reserve as provided in this subsection.

    [[Page 112 STAT. 2267]]

    Subject to section 3406, the Secretary shall carry out any such disposal
    of the reserve by sale or lease or by transfer to another Federal
    agency. Any sale or lease shall provide for the disposal of all right,
    title, and interest of the United States in the property to be conveyed
    and shall be conducted in accordance with competitive procedures
    consistent with commercial practices, as established by the Secretary.
        (c) Relationship to Antitrust Laws.--This section does not modify,
    impair, or supersede the operation of the antitrust laws.

    SEC. 3405. <<NOTE: 10 USC 7420 note.>> DISPOSAL OF OIL SHALE RESERVE
                NUMBERED 2.

        (a) Transfer of Administrative Jurisdiction Authorized.--Subject to
    section 3406, the Secretary of Energy may transfer to the Secretary of
    the Interior administrative jurisdiction and control over all public
    domain lands included within Oil Shale Reserve Numbered 2 for management
    in accordance with the general land laws.
        (b) Relationship to Indian Reservation.--The transfer of
    administrative jurisdiction under this section does not affect any
    interest, right, or obligation respecting the Uintah and Ouray Indian
    Reservation located in Oil Shale Reserve Numbered 2.

    SEC. 3406. <<NOTE: 10 USC 7420 note.>> ADMINISTRATION.

        (a) Protection of Existing Rights.--At the discretion of the
    Secretary of Energy, the disposal of property under this title shall be
    subject to any contract related to the United States ownership interest
    in the property in effect at the time of disposal, including any lease
    agreement pertaining to the United States interest in Naval Petroleum
    Reserve Numbered 2.
        (b) Deposit of Receipts.--Notwithstanding any other law, all monies
    received by the United States from the disposal of property under this
    title, including any monies received from a lease entered into under
    this title, shall be deposited in the general fund of the Treasury.
        (c) Treatment of Royalties.--Any petroleum accruing to the United
    States as royalty from any lease of lands transferred under this title
    shall be delivered to the United States, or shall be paid for in money,
    as the Secretary of the Interior may elect.
        (d) Elements of Lease.--A lease under this title may provide for the
    exploration for, and development and production of, petroleum, other
    than petroleum in the form of oil shale.
        (e) Waiver of Requirements Regarding Consultation and Approval.--
    Section 7431 of title 10, United States Code, shall not apply to the
    disposal of property under this title.

    TITLE XXXV--PANAMA <<NOTE: Panama Canal Commission Authorization Act for
    Fiscal Year 1999.>> CANAL COMMISSION

    Sec. 3501. Short title; references to Panama Canal Act of 1979.
    Sec. 3502. Authorization of expenditures.
    Sec. 3503. Purchase of vehicles.
    Sec. 3504. Expenditures only in accordance with treaties.
    Sec. 3505. Donations to the Commission.
    Sec. 3506. Agreements for United States to provide post-transfer
               administrative services for certain employee benefits.
    Sec. 3507. Sunset of United States overseas benefits just before
               transfer.
    Sec. 3508. Central examining office.
    Sec. 3509. Liability for vessel accidents.

    [[Page 112 STAT. 2268]]

    Sec. 3510. Panama Canal Board of Contract Appeals.
    Sec. 3511. Restatement of requirement that Secretary of Defense designee
               on
               Panama Canal Commission supervisory board be a current
               officer of the Department of Defense.
    Sec. 3512. Technical amendments.

    SEC. 3501. SHORT TITLE; REFERENCES TO PANAMA CANAL ACT OF 1979.

        (a) Short Title.--This title may be cited as the ``Panama Canal
    Commission Authorization Act for Fiscal Year 1999''.
        (b) References to Panama Canal Act of 1979.--Except as otherwise
    expressly provided, whenever in this title an amendment or repeal is
    expressed in terms of an amendment to, or repeal of, a section or other
    provision, the reference shall be considered to be made to a section or
    other provision of the Panama Canal Act of 1979 (22 U.S.C. 3601 et
    seq.).

    SEC. 3502. AUTHORIZATION OF EXPENDITURES.

        (a) In General.--Subject to subsection (b), the Panama Canal
    Commission is authorized to use amounts in the Panama Canal Revolving
    Fund to make such expenditures within the limits of funds and borrowing
    authority available to it in accordance with law, and to make such
    contracts and commitments, as may be necessary under the Panama Canal
    Act of 1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance,
    improvement, and administration of the Panama Canal for fiscal year
    1999.
        (b) Limitations.--For fiscal year 1999, the Panama Canal Commission
    may expend from funds in the Panama Canal Revolving Fund not more than
    $100,000 for official reception and representation expenses, of which--
                (1) not more than $28,000 may be used for official reception
            and representation expenses of the Supervisory Board of the
            Commission;
                (2) not more than $14,000 may be used for official reception
            and representation expenses of the Secretary of the Commission;
            and
                (3) not more than $58,000 may be used for official reception
            and representation expenses of the Administrator of the
            Commission.

    SEC. 3503. PURCHASE OF VEHICLES.

        Notwithstanding any other provision of law, the funds available to
    the Commission shall be available for the purchase and transportation to
    the Republic of Panama of passenger motor vehicles, the purchase price
    of which shall not exceed $23,000 per vehicle.

    SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

    SEC. 3505. DONATIONS TO THE COMMISSION.

        Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the
    following new subsection:
        ``(f )(1) The Commission may seek and accept donations of funds,
    property, and services from individuals, foundations, corporations, and
    other private and public entities for the purpose of carrying out its
    promotional activities.
        ``(2) The Commission shall establish written guidelines setting
    forth the criteria to be used in determining whether the acceptance

    [[Page 112 STAT. 2269]]

    of funds, property, or services authorized by paragraph (1) would
    reflect unfavorably upon the ability of the Commission (or any employee
    of the Commission) to carry out its responsibilities or official duties
    in a fair and objective manner or would compromise the integrity or the
    appearance of the integrity of its programs or of any official in those
    programs.''.

    SEC. 3506. AGREEMENTS FOR UNITED STATES TO PROVIDE POST-TRANSFER
                ADMINISTRATIVE SERVICES FOR CERTAIN EMPLOYEE BENEFITS.

        Section 1110 (22 U.S.C. 3620) is amended by adding at the end the
    following new subsection:
        ``(c)(1) The Secretary of State may enter into one or more
    agreements to provide for the United States to furnish administrative
    services relating to the benefits described in paragraph (2) after
    December 31, 1999, and to establish appropriate procedures for providing
    advance funding for the services.
        ``(2) The benefits referred to in paragraph (1) are the following:
                ``(A) Pension, disability, and medical benefits provided by
            the Panama Canal Commission pursuant to section 1245.
                ``(B) Compensation for work injuries covered by chapter 81
            of title 5, United States Code.''.

    SEC. 3507. SUNSET OF UNITED STATES OVERSEAS BENEFITS JUST BEFORE
                TRANSFER.

        (a) Repeals.--Effective 11:59 p.m. (Eastern Standard Time), December
    30, 1999, the following provisions are repealed and any right or
    condition of employment provided for in, or arising from, those
    provisions is terminated: sections 1206 (22 U.S.C. 3646), 1207 (22
    U.S.C. 3647), 1217(a) (22 U.S.C. 3657(a)), and 1224(11) (22 U.S.C.
    3664(11)), subparagraphs (A), (B), (F), (G), and (H) of section
    1231(a)(2) (22 U.S.C. 3671(a)(2)) and section 1321(e) (22 U.S.C.
    3731(e)).
         <<NOTE: 22 USC 3657 note.>> (b) Savings Provision for Basic Pay.--
    Notwithstanding subsection (a), benefits based on basic pay, as listed
    in paragraphs (1), (2), (3), (5), and (6) of section 1218 of the Panama
    Canal Act of 1979, shall be paid as if sections 1217(a) and
    1231(a)(2)(A) and (B) of that Act had been repealed effective 12:00
    noon, December 31, 1999. The exception under the preceding sentence
    shall not apply to any pay for hours of work performed on December 31,
    1999.

        (c) Nonapplicability to Agencies in Panama Other Than Panama Canal
    Commission.--Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by
    striking out ``the Panama Canal Transition Facilitation Act of 1997''
    and inserting in lieu thereof ``the Panama Canal Transition Facilitation
    Act of 1997 (subtitle B of title XXXV of Public Law 105-85; 110 Stat.
    2062), or the Panama Canal Commission Authorization Act for Fiscal Year
    1999''.

    SEC. 3508. CENTRAL EXAMINING OFFICE.

        (a) Repeal.--Section 1223 (22 U.S.C. 3663) is repealed.
        (b) Clerical Amendment.--The table of contents in section 1 is
    amended by striking out the item relating to section 1223.

    SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS.

        (a) Commission Liability Subject to Claimant Insurance.--(1) Section
    1411(a) (22 U.S.C. 3771(a)) is amended by inserting

    [[Page 112 STAT. 2270]]

    ``to section 1419(b) of this Act and'' after ``Subject'' in the first
    sentence.
        (2) Section 1412 (22 U.S.C. 3772) is amended by striking out ``The
    Commission'' in the first sentence and inserting in lieu thereof
    ``Subject to section 1419(b) of this Act, the Commission''.
        (3) Section 1416 (22 U.S.C. 3776) is amended by striking out ``A
    claimant'' in the first sentence and inserting in lieu thereof ``Subject
    to section 1419(b) of this Act, a claimant''.
        (b) Authority To Require Claimants To Be Covered by Insurance.--
    Section 1419 (22 U.S.C. 3779) is amended--
                (1) by inserting ``(a)'' before ``The Commission''; and
                (2) by adding at the end the following:

        ``(b)(1) The Commission may by regulation require as a condition of
    transit through the Panama Canal or presence in the Panama Canal or
    waters adjacent thereto that any potential claimant under section 1411
    or 1412 of this Act be covered by insurance against the types of
    injuries described in those sections. The amount of insurance so
    required shall be specified in those regulations, but may not exceed
    $1,000,000.
        ``(2) In a claim under section 1411 or 1412 of this Act for which
    the Commission has required insurance under this subsection, the
    Commission's liability shall be limited to the amount of damages in
    excess of the amount of insurance required by the Commission.
        ``(3) In regulations under this subsection, the Commission may
    prohibit consideration or payment by it of claims presented by or on
    behalf of an insurer or subrogee of a claimant in a case for which the
    Commission has required insurance under this subsection.''.

    SEC. 3510. PANAMA CANAL BOARD OF CONTRACT APPEALS.

        (a) Establishment and Pay of Board.--Section 3102(a) (22 U.S.C.
    3862(a)) is amended--
                (1) in paragraph (1), by striking out ``shall'' in the first
            sentence and inserting in lieu thereof ``may''; and
                (2) by adding at the end the following new paragraph:

        ``(3) Compensation for members of the Board of Contract Appeals
    shall be established by the Commission's supervisory board. The annual
    compensation established for members may not exceed the rate of basic
    pay established for level IV of the Executive Schedule under section
    5315 of title 5, United States Code. The compensation of a member may
    not be reduced during the member's term of office from the level
    established at the time of the appointment of the member.''.
        (b) Deadline for Commencement of Board.--Section 3102(e) (22 U.S.C.
    3862(e)) is amended by striking out ``, but not later than January 1,
    1999''.

    SEC. 3511. RESTATEMENT OF REQUIREMENT THAT SECRETARY OF DEFENSE DESIGNEE
                ON PANAMA CANAL COMMISSION SUPERVISORY BOARD BE A CURRENT
                OFFICER OF THE DEPARTMENT OF DEFENSE.

        (a) Authority.--Section 1102(a) (22 U.S.C. 3612(a)) is
    amended--
                (1) by striking out the first sentence and inserting in lieu
            thereof the following: ``The Commission shall be supervised by a
            Board composed of nine members, one of whom shall be an officer
            of the Department of Defense. The officer of

    [[Page 112 STAT. 2271]]

            the Department of Defense who shall serve on the Board shall be
            designated by the Secretary of Defense and may continue to serve
            on the Board only while continuing to serve as an officer of the
            Department of Defense.''; and
                (2) in the last sentence, by striking out ``Secretary of
            Defense or a designee of the Secretary of Defense'' and
            inserting in lieu thereof ``the officer of the Department of
            Defense designated by the Secretary of Defense to be a member of
            the Board''.

        (b) Repeal of Superseded Provision.--Section 302 of Public Law 105-
    18 (111 Stat. 168) is repealed.

    SEC. 3512. TECHNICAL AMENDMENTS.

        (a) Panama Canal Act of 1979.--The Panama Canal Act of 1979 is
    amended as follows:
                (1) Section 1202(c) (22 U.S.C. 3642(c)) is amended--
                        (A) by striking out ``the day before the date of the
                    enactment of the Panama Canal Transition Facilitation
                    Act of 1997'' and inserting in lieu thereof ``November
                    17, 1997,'';
                        (B) by striking out ``on or after that date''; and
                        (C) by striking out ``the day before the date of
                    enactment'' and inserting in lieu thereof ``that date''.
                (2) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by
            inserting ``the'' after ``by the head of''.
                (3) Section 1313 (22 U.S.C. 3723) is amended by striking out
            ``subsection (d)'' in each of subsections (a), (b), and (d) and
            inserting in lieu thereof ``subsection (c)''.
                (4) Sections 1411(a) and 1412 (22 U.S.C. 3771(a), 3772) are
            amended by striking out ``the date of the enactment of the
            Panama Canal Transition Facilitation Act of 1997'' and inserting
            in lieu thereof ``by November 18, 1998''.
                (5) Section 1416 (22 U.S.C. 3776) is amended by striking out
            ``the date of the enactment of the Panama Canal Transition
            Facilitation Act of 1997'' and inserting in lieu thereof ``by
            May 17, 1998''.

        (b) Public Law 104-201.--Effective as of September 23, 1996, and as
    if included therein as enacted, section 3548(b)(3) of the Panama Canal
    Act Amendments of 1996 (subtitle B of title XXXV of Public Law 104-201;
    110 Stat. 2869) <<NOTE: 22 USC 3751 note.>> is amended by striking out
    ``section'' in both items of quoted matter and inserting in lieu thereof
    ``sections''.

                      TITLE XXXVI--MARITIME ADMINISTRATION

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

    SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1999.

        Funds are hereby authorized to be appropriated for fiscal year 1999,
    to be available without fiscal year limitation if so provided in
    appropriations Act, for the use of the Department of Transportation for
    the Maritime Administration as follows:

    [[Page 112 STAT. 2272]]

                (1) For expenses necessary for operations and training
            activities, $70,553,000.
                (2) For expenses under the loan guarantee program authorized
            by title XI of the Merchant Marine Act, 1936 (46 U.S.C. App.
            1271 et seq.), $20,000,000 of which--
                        (A) $16,000,000 is for the cost (as defined in
                    section 502(5) of the Federal Credit Reform Act of 1990
                    (2 U.S.C. 661a(5))) of loan guarantees under the
                    program; and
                        (B) $4,000,000 is for administrative expenses
                    related to loan guarantee commitments under the program.

    SEC. 3602. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

        (a) Authority To Convey.--The Secretary of Transportation may convey
    all right, title, and interest of the United States Government in and to
    the vessel M/V BAYAMON (United States official number 530007) to a
    purchaser for use as a self-propelled floating trade exposition to
    showcase United States technology, industrial products, and services.
        (b) Terms of Conveyance.--
                (1) Delivery of vessel.--In carrying out subsection (a), the
            Secretary shall deliver the vessel--
                        (A) at the place where the vessel is located on the
                    date of conveyance;
                        (B) in its condition on that date; and
                        (C) at no cost to the United States Government.
                (2) Required conditions.--The Secretary may not convey a
            vessel under this section unless--
                        (A) competitive procedures are used for sales under
                    this section;
                        (B) the vessel is sold for not less than the fair
                    market value of the vessel in the United States, as
                    determined by the Secretary of Transportation;
                        (C) the recipient agrees that any repair, except for
                    emergency repairs, restoration, or reconstruction work
                    for the vessel will be performed in the United States;
                        (D) the recipient agrees to hold the Government
                    harmless for any claims arising from exposure to
                    hazardous material, including asbestos and
                    polychlorinated biphenyls, after the conveyance of the
                    vessel, except for claims arising before the date of the
                    conveyance or from use of the vessel by the Government
                    after that date; and
                        (E) the recipient provides sufficient evidence to
                    the Secretary that it has adequate financial resources
                    in the form of cash, liquid assets, or a written loan
                    commitment to complete the reconstruction of the vessel.
                (3) Additional terms.--The Secretary may require such
            additional terms in connection with the conveyance authorized by
            this section as the Secretary considers appropriate.

        (c) Proceeds.--Any amounts received by the United States as proceeds
    from the sale of the M/V BAYAMON shall be deposited in the Vessel
    Operations Revolving Fund established by section 801 of the Act of June
    2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) and shall be available and
    expended in accordance with section 6(a) of the National Maritime
    Heritage Act (16 U.S.C. App. 5405(a)).

    [[Page 112 STAT. 2273]]

    SEC. 3603. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE RESERVE FLEET
                VESSELS.

        (a) Authority To Convey.--The Secretary of Transportation may convey
    all right, title, and interest of the United States Government in and to
    the vessels BENJAMIN ISHERWOOD (TAO-191) and HENRY ECKFORD (TAO-192) to
    a purchaser for the limited purpose of reconstruction of those vessels
    for sale or charter to a North Atlantic Treaty Organization country for
    full use as an oiler.
        (b) Terms of Conveyance.--
                (1) Delivery of vessel.--In carrying out subsection (a), the
            Secretary shall deliver the vessel--
                        (A) at the place where the vessel is located on the
                    date of the conveyance;
                        (B) in its condition on that date; and
                        (C) at no cost to the United States Government.
                (2) Required conditions.--The Secretary may not convey a
            vessel under this section unless--
                        (A) competitive procedures are used for sales under
                    this section;
                        (B) the vessel is sold for not less than the fair
                    market value of the vessel in the United States, as
                    determined by the Secretary of Transportation;
                        (C) the recipient agrees that any repair, except for
                    emergency repairs, restoration, or reconstruction work
                    for the vessel will be performed in the United States;
                        (D) the recipient agrees to hold the Government
                    harmless for any claims arising from defects in the
                    vessel or from exposure to hazardous material, including
                    asbestos and polychlorinated biphenyls, after the
                    conveyance of the vessel, except for claims arising
                    before the date of the conveyance or from use of the
                    vessel by the Government after that date;
                        (E) the recipient provides sufficient evidence to
                    the Secretary that it has adequate financial resources
                    in the form of cash, liquid assets, or a written loan
                    commitment to complete the reconstruction of the vessel;
                    and
                        (F) with respect to the vessel, the recipient
                    remains subject to all laws and regulations governing
                    the export of military items, including the requirements
                    administered by the Department of State regarding export
                    licenses and certification of nontransfer end use.
                (3) Additional terms.--The Secretary may require such
            additional terms in connection with a conveyance authorized by
            this section as the Secretary considers appropriate.

        (c) Proceeds.--Any amounts received by the United States as proceeds
    from the sale of a vessel under this section shall be deposited in the
    Vessel Operations Revolving Fund established by section 801 of the Act
    of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) and shall be
    available and expended in accordance with section 6(a) of the National
    Maritime Heritage Act (16 U.S.C. App. 5405(a)).

    SEC. 3604. CLEARINGHOUSE FOR MARITIME INFORMATION.

        Of the amount authorized to be appropriated pursuant to section
    3601(1) for operations of the Maritime Administration, $75,000

    [[Page 112 STAT. 2274]]

    may be available for the establishment at a State Maritime Academy of a
    clearinghouse for maritime information that makes that information
    publicly available, including by use of the Internet.

    SEC. 3605. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.

        (a) Authority To Convey.--The Secretary of Transportation may convey
    all right, title, and interest of the Federal Government in and to the
    vessel ex-USS LORAIN COUNTY (LST-1177) to the Ohio War Memorial, Inc.,
    located in Sandusky, Ohio (in this section referred to as the
    ``recipient''), for use as a memorial to Ohio veterans.
        (b) Terms of Conveyance.--
                (1) Delivery of vessel.--In carrying out subsection (a), the
            Secretary shall deliver the vessel--
                        (A) at the place where the vessel is located on the
                    date of conveyance;
                        (B) in its condition on that date; and
                        (C) at no cost to the Federal Government.
                (2) Required conditions.--The Secretary may not convey a
            vessel under this section unless--
                        (A) the recipient agrees to hold the Government
                    harmless for any claims arising from exposure to
                    hazardous material, including asbestos and
                    polychlorinated biphenyls, after conveyance of the
                    vessel, except for claims arising before the date of the
                    conveyance or from use of the vessel by the Government
                    after that date; and
                        (B) the recipient has available, for use to restore
                    the vessel, in the form of cash, liquid assets, or a
                    written loan commitment, financial resources of at least
                    $100,000.
                (3) Additional terms.--The Secretary may require such
            additional terms in connection with the conveyance authorized by
            this section as the Secretary considers appropriate.

        (c) Other Unneeded Equipment.--The Secretary may convey to the
    recipient of the vessel conveyed under this section any unneeded
    equipment from other vessels in the National Defense Reserve Fleet, for
    use to restore the vessel conveyed under this section to museum quality.

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

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

    SEC. 3701. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO MONITOR THE
                IMPORTATION OF PRODUCTS MADE WITH FORCED LABOR.

        There are authorized to be appropriated for monitoring by the United
    States Customs Service of the importation into the United States of
    products made with forced labor, the importation of which violates
    section 307 of the Tariff Act of 1930 or section 1761 of title 18,
    United States Code, $2,000,000 for fiscal year 1999.

    [[Page 112 STAT. 2275]]

    SEC. 3702. <<NOTE: 19 USC 1307 note.>> REPORTING REQUIREMENT ON FORCED
                LABOR PRODUCTS DESTINED FOR THE UNITED STATES MARKET.

        (a) Report to Congress.--Not later than 1 year after the date of the
    enactment of this Act, the Commissioner of Customs shall prepare and
    transmit to the Congress a report on products made with forced labor
    that are destined for the United States market.
        (b) Contents of Report.--The report under subsection (a) shall
    include information concerning the following:
                (1) The extent of the use of forced labor in manufacturing
            products destined for the United States market.
                (2) The volume of products made with forced labor, destined
            for the United States market, that is in violation of section
            307 of the Tariff Act of 1930 or section 1761 of title 18,
            United States Code, and is seized by the United States Customs
            Service.
                (3) The progress of the United States Customs Service in
            identifying and interdicting products made with forced labor
            that are destined for the United States market.

    SEC. 3703. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED LABOR.

        It is the sense of Congress that the President should determine
    whether any country with which the United States has a memorandum of
    understanding with respect to reciprocal trade which involves goods made
    with forced labor is frustrating implementation of the memorandum.
    Should an affirmative determination be made, the President should
    immediately commence negotiations to replace the current memorandum of
    understanding with one providing for effective procedures for the
    monitoring of forced labor, including improved procedures to request
    investigations by international monitors of worksites suspected to be in
    violation of any such memorandum.

       TITLE XXXVIII--FAIR <<NOTE: Fair Trade in Automotive Parts Act of
    1998.>> TRADE IN AUTOMOTIVE PARTS

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

    SEC. 3801. <<NOTE: 15 USC 4701 note.>> SHORT TITLE.

        This title may be cited as the ``Fair Trade in Automotive Parts Act
    of 1998''.

    SEC. 3802. <<NOTE: 15 USC 4705.>> DEFINITIONS.

        In this title:
                (1) Japanese markets.--The term ``Japanese markets'' refers
            to markets, including markets in the United States and Japan,
            where automotive parts and accessories, both original equipment
            and aftermarket, are purchased for use in the manufacture or
            repair of Japanese automobiles.
                (2) Japanese and other asian markets.--The term ``Japanese
            and other Asian markets'' refers to markets, including markets
            in the United States, Japan, and other Asian countries,

    [[Page 112 STAT. 2276]]

            where automotive parts and accessories, both original equipment
            and aftermarket, are purchased for use in the manufacture or
            repair of Japanese, United States, or other Asian automobiles.

    SEC. 3803. <<NOTE: 15 USC 4705a.>> RE-ESTABLISHMENT OF INITIATIVE ON
                AUTOMOTIVE PARTS SALES TO JAPAN.

        (a) In General.--The Secretary of Commerce shall re-establish the
    initiative to increase the sale of United States-made automotive parts
    and accessories to Japanese markets.
        (b) Functions.--In carrying out this section, the Secretary shall--
                (1) foster increased access for United States-made
            automotive parts and accessories to Japanese companies,
            including specific consultations on access to Japanese markets;
                (2) facilitate the exchange of information between United
            States automotive parts manufacturers and the Japanese
            automobile industry;
                (3) collect data and market information on the Japanese
            automotive industry regarding needs, trends, and procurement
            practices, including the types, volume, and frequency of parts
            sales to Japanese automobile manufacturers;
                (4) establish contacts with Japanese automobile
            manufacturers in order to facilitate contact between United
            States automotive parts manufacturers and Japanese automobile
            manufacturers;
                (5) report on and attempt to resolve disputes, policies, or
            practices, whether public or private, that result in barriers to
            increased commerce between United States automotive parts
            manufacturers and Japanese automobile manufacturers;
                (6) take actions to initiate periodic consultations with
            officials of the Government of Japan regarding sales of United
            States-made automotive parts in Japanese markets; and
                (7) transmit to Congress the annual report prepared by the
            Special Advisory Committee under section 3804(c)(5).

    SEC. 3804. <<NOTE: 15 USC 4705b.>> ESTABLISHMENT OF SPECIAL ADVISORY
                COMMITTEE ON AUTOMOTIVE PARTS SALES IN JAPANESE AND OTHER
                ASIAN MARKETS.

        (a) In General.--The Secretary of Commerce shall seek the advice of
    the United States automotive parts industry in carrying out this title.
        (b) Establishment of Committee.--The Secretary of Commerce shall
    establish a Special Advisory Committee for purposes of carrying out this
    title.
        (c) Functions.--The Special Advisory Committee established under
    subsection (b) shall--
                (1) <<NOTE: Reports.>> report to the Secretary of Commerce
            on barriers to sales of United States-made automotive parts and
            accessories in Japanese and other Asian markets;
                (2) review and consider data collected on sales of United
            States-made automotive parts and accessories in Japanese and
            other Asian markets;
                (3) advise the Secretary of Commerce during consultations
            with other governments on issues concerning sales of United
            States-made automotive parts in Japanese and other Asian
            markets;

    [[Page 112 STAT. 2277]]

                (4) assist in establishing priorities for the initiative
            established under section 3803, and otherwise provide assistance
            and direction to the Secretary of Commerce in carrying out the
            intent of that section; and
                (5) assist the Secretary in reporting to Congress by
            submitting an annual written report to the Secretary on the sale
            of United States-made automotive parts in Japanese and other
            Asian markets, as well as any other issues with respect to which
            the Committee provides advice pursuant to this title.

        (d) Authority.--The Secretary of Commerce shall draw on existing
    budget authority in carrying out this title.

    SEC. 3805. <<NOTE: 15 USC 4705c.>> EXPIRATION DATE.

        The authority under this title shall expire on December 31, 2003.

    TITLE XXXIX--RADIO <<NOTE: Radio Free Asia Act of 1998.>> FREE ASIA

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

    SEC. 3901. SHORT TITLE.

        This title may be cited as the ``Radio Free Asia Act of 1998''.

    SEC. 3902. AUTHORIZATION OF APPROPRIATIONS FOR INCREASED FUNDING FOR
                RADIO FREE ASIA AND VOICE OF AMERICA BROADCASTING TO CHINA.

        (a) Authorization of Appropriations for Radio Free Asia.--
                (1) Authorization of appropriations.--There are authorized
            to be appropriated for ``Radio Free Asia'' $22,000,000 for
            fiscal year 1999.
                (2) Sense of congress.--It is the sense of Congress that a
            significant amount of the funds under paragraph (1) should be
            directed toward broadcasting to China and Tibet in the
            appropriate languages and dialects.

        (b) Authorization of Appropriations for International Broadcasting
    to China.--In addition to such sums as are otherwise authorized to be
    appropriated to the United States Information Agency for ``International
    Broadcasting Activities'' for fiscal year 1999, there are authorized to
    be appropriated for ``International Broadcasting Activities'' $3,000,000
    for fiscal year 1999, which shall be available only for enhanced Voice
    of America broadcasting to China.
        (c) Authorization of Appropriations for Radio Construction.--In
    addition to such sums as are otherwise authorized to be appropriated for
    ``Radio Construction'' for fiscal year 1999, there are authorized to be
    appropriated for ``Radio Construction'' $2,000,000 for fiscal year 1999,
    which shall be available only for construction in support of enhanced
    broadcasting to China, including the timely augmentation of transmitters
    at Tinian, the Commonwealth of the Northern Mariana Islands.

    [[Page 112 STAT. 2278]]

    SEC. 3903. REPORTING REQUIREMENT.

        (a) Report.--Not later than 90 days after the date of the enactment
    of this Act, the Broadcasting Board of Governors shall prepare and
    submit to the appropriate congressional committees an assessment of the
    board's efforts to increase broadcasting by Radio Free Asia and Voice of
    America to China and Tibet. This report shall include an analysis of
    Chinese government control of the media, the ability of independent
    journalists and news organizations to operate in China, and the results
    of any research conducted to quantify listenership.
        (b) Definition.--As used in this section, the term ``appropriate
    congressional committees'' means--
                (1) the Committee on Foreign Relations and the Committee on
            Appropriations of the Senate; and
                (2) the Committee on International Relations and the
            Committee on Appropriations of the House of Representatives.

        Approved October 17, 1998.

    LEGISLATIVE HISTORY--H.R. 3616 (S. 2057):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 105-532 (Comm. on National Security) and 105-736
    (Comm. of Conference).
    CONGRESSIONAL RECORD, Vol. 144 (1998):
                May 19-21, considered and passed House.
                June 25, considered and passed Senate, amended, in lieu of
                    S. 2057.
                Sept. 24, House agreed to conference report.
                Sept. 30, Oct. 1, Senate considered and agreed to conference
                    report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
                Oct. 17, Presidential statement.

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