    [105th Congress Public Law 85]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ85.105]

    [[Page 111 STAT. 1629]]

    Public Law 105-85
    105th Congress

                                     An Act

    To authorize appropriations for fiscal year 1998 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: Nov. 18, 1997 -  [H.R. 1119]>>

        Be it enacted by the Senate and House of Representatives of the
    United States <<NOTE: National Defense Authorization Act for Fiscal Year
    1998.>>  of America in Congress assembled

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``National Defense Authorization Act
    for Fiscal Year 1998''.

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

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

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

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

    Sec. 111. Army helicopter modernization plan.
    Sec. 112. Multiyear procurement authority for specified Army programs.
    Sec. 113. M113 vehicle modifications.

                            Subtitle C--Navy Programs

    Sec. 121. New Attack Submarine program.
    Sec. 122. CVN-77 nuclear aircraft carrier program.

    [[Page 111 STAT. 1630]]

    Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                         Subtitle D--Air Force Programs

    Sec. 131. Authorization for B-2 bomber program.
    Sec. 132. ALR radar warning receivers.
    Sec. 133. Analysis of requirements for replacement of engines on
               military aircraft derived from Boeing 707 aircraft.

                            Subtitle E--Other Matters

    Sec. 141. Pilot program on sales of manufactured articles and services
               of certain Army industrial facilities without regard to
               availability from domestic sources.
    Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Dual-use technology program.
    Sec. 204. Reduction in amount for Federally Funded Research and
               Development Centers.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Manufacturing technology program.
    Sec. 212. Report on operational field assessments program.
    Sec. 213. Joint Strike Fighter program.
    Sec. 214. Kinetic energy tactical anti-satellite technology program.
    Sec. 215. Micro-satellite technology development program.
    Sec. 216. High altitude endurance unmanned vehicle program.
    Sec. 217. F-22 aircraft program.

                 Subtitle C--Ballistic Missile Defense Programs

    Sec. 231. National Missile Defense Program.
    Sec. 232. Budgetary treatment of amounts for procurement for ballistic
               missile
               defense programs.
    Sec. 233. Cooperative Ballistic Missile Defense program.
    Sec. 234. Annual report on threat posed to the United States by weapons
               of mass destruction, ballistic missiles, and cruise missiles.
    Sec. 235. Director of Ballistic Missile Defense Organization.
    Sec. 236. Repeal of required deployment dates for core theater missile
               defense
               programs.

                            Subtitle D--Other Matters

    Sec. 241. Restructuring of National Oceanographic Partnership Program
               organizations.
    Sec. 242. Maintenance and repair of real property at Air Force
               installations.
    Sec. 243. Expansion of eligibility for the Defense Experimental Program
               to Stimulate Competitive Research.
    Sec. 244. Bioassay testing of veterans exposed to ionizing radiation
               during military service.
    Sec. 245. Sense of Congress regarding Comanche program.

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Fisher House Trust Funds.
    Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 306. Refurbishment of M1-A1 tanks.
    Sec. 307. Operation of prepositioned fleet, National Training Center,
               Fort Irwin, California.
    Sec. 308. Refurbishment and installation of air search radar.
    Sec. 309. Contracted training flight services.
    Sec. 310. Procurement technical assistance programs.
    Sec. 311. Operation of Fort Chaffee, Arkansas.

                      Subtitle B--Military Readiness Issues

    Sec. 321. Monthly reports on allocation of funds within operation and
               maintenance budget subactivities.

    [[Page 111 STAT. 1631]]

    Sec. 322. Expansion of scope of quarterly readiness reports.
    Sec. 323. Semiannual reports on transfers from high-priority readiness
               appropriations.
    Sec. 324. Annual report on aircraft inventory.
    Sec. 325. Administrative actions adversely affecting military training
               or other
               readiness activities.
    Sec. 326. Common measurement of operations tempo and personnel tempo.
    Sec. 327. Inclusion of Air Force depot maintenance as operation and
               maintenance budget line items.
    Sec. 328. Prohibition of implementation of tiered readiness system.
    Sec. 329. Report on military readiness requirements of the Armed Forces.
    Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
    Sec. 331. Report on military exercises conducted under certain training
               exercises programs.
    Sec. 332. Report on overseas deployments.

                      Subtitle C--Environmental Provisions

    Sec. 341. Revision of membership terms for Strategic Environmental
               Research and Development Program Scientific Advisory Board.
    Sec. 342. Amendments to authority to enter into agreements with other
               agencies in support of environmental technology
               certification.
    Sec. 343. Modifications of authority to store and dispose of nondefense
               toxic and hazardous materials.
    Sec. 344. Annual report on payments and activities in response to fines
               and
               penalties assessed under environmental laws.
    Sec. 345. Annual report on environmental activities of the Department of
               Defense overseas.
    Sec. 346. Review of existing environmental consequences of the presence
               of the Armed Forces in Bermuda.
    Sec. 347. Sense of Congress on deployment of United States Armed Forces
               abroad for environmental preservation activities.
    Sec. 348. Recovery and sharing of costs of environmental restoration at
               Department of Defense sites.
    Sec. 349. Partnerships for investment in innovative environmental
               technologies.
    Sec. 350. Procurement of recycled copier paper.
    Sec. 351. Pilot program for the sale of air pollution emission reduction
               incentives.

                       Subtitle D--Depot-Level Activities

    Sec. 355. Definition of depot-level maintenance and repair.
    Sec. 356. Core logistics capabilities of Department of Defense.
    Sec. 357. Increase in percentage of depot-level maintenance and repair
               that may be contracted for performance by non-government
               personnel.
    Sec. 358. Annual report on depot-level maintenance and repair.
    Sec. 359. Requirement for use of competitive procedures in contracting
               for performance of depot-level maintenance and repair
               workloads formerly
               performed at closed or realigned military installations.
    Sec. 360. Clarification of prohibition on management of depot employees
               by
               constraints on personnel levels.
    Sec. 361. Centers of Industrial and Technical Excellence.
    Sec. 362. Extension of authority for aviation depots and naval shipyards
               to engage in defense-related production and services.
    Sec. 363. Repeal of a conditional repeal of certain depot-level
               maintenance and
               repair laws and a related reporting requirement.
    Sec. 364. Personnel reductions, Army depots participating in Army
               Workload and Performance System.
    Sec. 365. Report on allocation of core logistics activities among
               Department of
               Defense facilities and private sector facilities.
    Sec. 366. Review of use of temporary duty assignments for ship repair
               and maintenance.
    Sec. 367. Sense of Congress regarding realignment of performance of
               ground
               communication-electronic workload.

       Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 371. Reorganization of laws regarding commissaries and exchanges
               and other morale, welfare, and recreation activities.
    Sec. 372. Merchandise and pricing requirements for commissary stores.
    Sec. 373. Limitation on noncompetitive procurement of brand-name
               commercial items for resale in commissary stores.
    Sec. 374. Treatment of revenues derived from commissary store
               activities.
    Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation
               Center, Europe.

    [[Page 111 STAT. 1632]]

    Sec. 376. Plan for use of public and private partnerships to benefit
               morale, welfare, and recreation activities.

                            Subtitle F--Other Matters

    Sec. 381. Assistance to local educational agencies that benefit
               dependents of
               members of the Armed Forces and Department of Defense
               civilian
               employees.
    Sec. 382. Center for Excellence in Disaster Management and Humanitarian
               Assistance.
    Sec. 383. Applicability of Federal printing requirements to Defense
               Automated Printing Service.
    Sec. 384. Study and notification requirements for conversion of
               commercial and
               industrial type functions to contractor performance.
    Sec. 385. Collection and retention of cost information data on converted
               services and functions.
    Sec. 386. Financial assistance to support additional duties assigned to
               Army
               National Guard.
    Sec. 387. Competitive procurement of printing and duplication services.
    Sec. 388. Continuation and expansion of demonstration program to
               identify
               overpayments made to vendors.
    Sec. 389. Development of standard forms regarding performance work
               statement and request for proposal for conversion of certain
               operational functions of military installations.
    Sec. 390. Base operations support for military installations on Guam.
    Sec. 391. Warranty claims recovery pilot program.
    Sec. 392. Program to investigate fraud, waste, and abuse within
               Department of
               Defense.
    Sec. 393. Multitechnology automated reader card demonstration program.
    Sec. 394. Reduction in overhead costs of Inventory Control Points.
    Sec. 395. Inventory management.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Permanent end strength levels to support two major regional
               contingencies.

                           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).

                   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. Limitation on number of general and flag officers who may
               serve in
               positions outside their own service.
    Sec. 502. Exclusion of certain retired officers from limitation on
               period of recall to active duty.
    Sec. 503. Clarification of officers eligible for consideration by
               promotion boards.
    Sec. 504. Authority to defer mandatory retirement for age of officers
               serving as chaplains.
    Sec. 505. Increase in number of officers allowed to be frocked to grades
               of colonel and Navy captain.
    Sec. 506. Increased years of commissioned service for mandatory
               retirement of
               regular generals and admirals in grades above major general
               and rear admiral.
    Sec. 507. Uniform policy for requirement of exemplary conduct by
               commanding
               officers and others in authority.
    Sec. 508. Report on the command selection process for District Engineers
               of the Army Corps of Engineers.

                      Subtitle B--Reserve Component Matters

    Sec. 511. Individual Ready Reserve activation authority.
    Sec. 512. Termination of Mobilization Income Insurance Program.
    Sec. 513. Correction of inequities in medical and dental care and death
               and disability benefits for reserve members who incur or
               aggravate an illness in the line of duty.

    [[Page 111 STAT. 1633]]

    Sec. 514. Authority to permit non-unit assigned officers to be
               considered by vacancy promotion board to general officer
               grades.
    Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air
               Force base security functions.
    Sec. 516. Involuntary separation of reserve officers in an inactive
               status.
    Sec. 517. Federal status of service by National Guard members as honor
               guards at funerals of veterans.

                        Subtitle C--Military Technicians

    Sec. 521. Authority to retain on the reserve active-status list until
               age 60 military technicians in the grade of brigadier
               general.
    Sec. 522. Military technicians (dual status).
    Sec. 523. Non-dual status military technicians.
    Sec. 524. Report on feasibility and desirability of conversion of AGR
               personnel to military technicians (dual status).

       Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
                                    Attrition

    Sec. 531. Reform of military recruiting systems.
    Sec. 532. Improvements in medical prescreening of applicants for
               military service.
    Sec. 533. Improvements in physical fitness of recruits.

                   Subtitle E--Military Education and Training

                       Part I--Officer Education Programs

    Sec. 541. Requirement for candidates for admission to United States
               Naval
               Academy to take oath of allegiance.
    Sec. 542. Service academy foreign exchange program.
    Sec. 543. Reimbursement of expenses incurred for instruction at service
               academies of persons from foreign countries.
    Sec. 544. Continuation of support to senior military colleges.
    Sec. 545. Report on making United States nationals eligible for
               participation in Senior Reserve Officers' Training Corps.
    Sec. 546. Coordination of establishment and maintenance of Junior
               Reserve
               Officers' Training Corps units to maximize enrollment and
               enhance
               efficiency.

                        Part II--Other Education Matters

    Sec. 551. United States Naval Postgraduate School.
    Sec. 552. Community College of the Air Force.
    Sec. 553. Preservation of entitlement to educational assistance of
               members of the Selected Reserve serving on active duty in
               support of a contingency
               operation.

                   Part III--Training of Army Drill Sergeants

    Sec. 556. Reform of Army drill sergeant selection and training process.
    Sec. 557. Training in human relations matters for Army drill sergeant
               trainees.

      Subtitle F--Commission on Military Training and Gender-Related Issues

    Sec. 561. Establishment and composition of Commission.
    Sec. 562. Duties.
    Sec. 563. Administrative matters.
    Sec. 564. Termination of Commission.
    Sec. 565. Funding.
    Sec. 566. Subsequent consideration by Congress.

                   Subtitle G--Military Decorations and Awards

    Sec. 571. Purple Heart to be awarded only to members of the Armed
               Forces.
    Sec. 572. Eligibility for Armed Forces Expeditionary Medal for
               participation in
               Operation Joint Endeavor or Operation Joint Guard.
    Sec. 573. Waiver of time limitations for award of certain decorations to
               specified persons.
    Sec. 574. Clarification of eligibility of members of Ready Reserve for
               award of
               service medal for heroism.
    Sec. 575. One-year extension of period for receipt of recommendations
               for decorations and awards for certain military intelligence
               personnel.
    Sec. 576. Eligibility of certain World War II military organizations for
               award of unit decorations.
    Sec. 577. Retroactivity of Medal of Honor special pension.

                      Subtitle H--Military Justice Matters

    Sec. 581. Establishment of sentence of confinement for life without
               eligibility for parole.

    [[Page 111 STAT. 1634]]

    Sec. 582. Limitation on appeal of denial of parole for offenders serving
               life
               sentence.

                            Subtitle I--Other Matters

    Sec. 591. Sexual harassment investigations and reports.
    Sec. 592. Sense of the Senate regarding study of matters relating to
               gender equity in the Armed Forces.
    Sec. 593. Authority for personnel to participate in management of
               certain non-
               Federal entities.
    Sec. 594. Treatment of participation of members in Department of Defense
               civil military programs.
    Sec. 595. Comptroller General study of Department of Defense civil
               military
               programs.
    Sec. 596. Establishment of public affairs specialty in the Army.
    Sec. 597. Grade of defense attache in France.
    Sec. 598. Report on crew requirements of WC-130J aircraft.
    Sec. 599. Improvement of missing persons authorities applicable to
               Department of Defense.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Increase in basic pay for fiscal year 1998.
    Sec. 602. Reform of basic allowance for subsistence.
    Sec. 603. Consolidation of basic allowance for quarters, variable
               housing allowance, and overseas housing allowances.
    Sec. 604. Revision of authority to adjust compensation necessitated by
               reform of subsistence and housing allowances.
    Sec. 605. Protection of total compensation of members while performing
               certain duty.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. One-year extension of certain bonuses and special pay
               authorities for
               reserve forces.
    Sec. 612. One-year extension of certain bonuses and special pay
               authorities for nurse officer candidates, registered nurses,
               and nurse anesthetists.
    Sec. 613. One-year extension of authorities relating to payment of other
               bonuses and special pays.
    Sec. 614. Increase in minimum monthly rate of hazardous duty incentive
               pay for certain members.
    Sec. 615. Increase in aviation career incentive pay.
    Sec. 616. Modification of aviation officer retention bonus.
    Sec. 617. Availability of multiyear retention bonus for dental officers.
    Sec. 618. Increase in variable and additional special pays for certain
               dental officers.
    Sec. 619. Availability of special pay for duty at designated hardship
               duty locations.
    Sec. 620. Definition of sea duty for purposes of career sea pay.
    Sec. 621. Modification of Selected Reserve reenlistment bonus.
    Sec. 622. Modification of Selected Reserve enlistment bonus for former
               enlisted members.
    Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard
               Reserve.
    Sec. 624. Increase in special pay and bonuses for nuclear-qualified
               officers.
    Sec. 625. Provision of bonuses in lieu of special pay for enlisted
               members extending tours of duty at designated locations
               overseas.
    Sec. 626. Increase in amount of family separation allowance.
    Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

                Subtitle C--Travel and Transportation Allowances

    Sec. 631. Travel and transportation allowances for dependents before
               approval of member's court-martial sentence.
    Sec. 632. Dislocation allowance.

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

    Sec. 641. One-year opportunity to discontinue participation in Survivor
               Benefit Plan.
    Sec. 642. Time in which change in survivor benefit coverage from former
               spouse to spouse may be made.
    Sec. 643. Review of Federal former spouse protection laws.
    Sec. 644. Annuities for certain military surviving spouses.
    Sec. 645. Administration of benefits for so-called minimum income
               widows.

                            Subtitle E--Other Matters

    Sec. 651. Loan repayment program for commissioned officers in certain
               health
               professions.

    [[Page 111 STAT. 1635]]

    Sec. 652. Conformance of NOAA commissioned officers separation pay to
               separation pay for members of other uniformed services.
    Sec. 653. Eligibility of Public Health Service officers and NOAA
               commissioned corps officers for reimbursement of adoption
               expenses.
    Sec. 654. Payment of back quarters and subsistence allowances to World
               War II veterans who served as guerrilla fighters in the
               Philippines.
    Sec. 655. Subsistence of members of the Armed Forces above the poverty
               level.

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Expansion of retiree dental insurance plan to include
               surviving spouse and child dependents of certain deceased
               members.
    Sec. 702. Provision of prosthetic devices to covered beneficiaries.
    Sec. 703. Study concerning the provision of comparative information.

                           Subtitle B--TRICARE Program

    Sec. 711. Addition of definition of TRICARE program to title 10.
    Sec. 712. Plan for expansion of managed care option of TRICARE program.

               Subtitle C--Uniformed Services Treatment Facilities

    Sec. 721. Implementation of designated provider agreements for Uniformed

               Services Treatment Facilities.
    Sec. 722. Continued acquisition of reduced-cost drugs.
    Sec. 723. Limitation on total payments.

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

    Sec. 731. Improvements in health care coverage and access for members
               assigned to certain duty locations far from sources of care.
    Sec. 732. Waiver or reduction of copayments under overseas dental
               program.
    Sec. 733. Premium collection requirements for medical and dental
               insurance
               programs; extension of deadline for implementation of dental
               insurance program for military retirees.
    Sec. 734. Dental insurance plan coverage for retirees of the Public
               Health Service and NOAA.
    Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for
               services.
    Sec. 736. Use of personal services contracts for provision of health
               care services and legal protection for providers.
    Sec. 737. Portability of State licenses for Department of Defense health
               care
               professionals.
    Sec. 738. Standard form and requirements regarding claims for payment
               for
               services.
    Sec. 739. Chiropractic health care demonstration program.

                            Subtitle E--Other Matters

    Sec. 741. Continued admission of civilians as students in physician
               assistant
               training program of Army Medical Department.
    Sec. 742. Payment for emergency health care overseas for military and
               civilian
               personnel of the On-Site Inspection Agency.
    Sec. 743. Authority for agreement for use of medical resource facility,
               Alamogordo, New Mexico.
    Sec. 744. Disclosures of cautionary information on prescription
               medications.
    Sec. 745. Competitive procurement of certain ophthalmic services.
    Sec. 746. Comptroller General study of adequacy and effect of maximum
               allowable charges for physicians under CHAMPUS.
    Sec. 747. Comptroller General study of Department of Defense pharmacy
               programs.
    Sec. 748. Comptroller General study of Navy graduate medical education
               program.
    Sec. 749. Study of expansion of pharmaceuticals by mail program to
               include
               additional Medicare-eligible covered beneficiaries.
    Sec. 750. Comptroller General study of requirement for military medical
               facilities in National Capital Region.
    Sec. 751. Report on policies and programs to promote healthy lifestyles
               for
               members of the Armed Forces and their dependents.
    Sec. 752. Sense of Congress regarding quality health care for retirees.

                        Subtitle F--Persian Gulf Illness

    Sec. 761. Definitions.
    Sec. 762. Plan for health care services for Persian Gulf veterans.

    [[Page 111 STAT. 1636]]

    Sec. 763. Comptroller General study of revised disability criteria for
               physical
               evaluation boards.
    Sec. 764. Medical care for certain reserves who served in Southwest Asia
               during the Persian Gulf War.
    Sec. 765. Improved medical tracking system for members deployed overseas
               in
               contingency or combat operations.
    Sec. 766. Notice of use of investigational new drugs or drugs unapproved
               for their applied use.
    Sec. 767. Report on plans to track location of members in a theater of
               operations.
    Sec. 768. Sense of Congress regarding the deployment of specialized
               units for
               detecting and monitoring chemical, biological, and similar
               hazards in a theater of operations.
    Sec. 769. Report on effectiveness of research efforts regarding Gulf War
               illnesses.
    Sec. 770. Persian Gulf illness clinical trials program.
    Sec. 771. Sense of Congress concerning Gulf War illness.

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

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

    Sec. 801. Expansion of authority to enter into contracts crossing fiscal
               years to all severable service contracts not exceeding a
               year.
    Sec. 802. Vesting of title in the United States under contracts paid
               under progress payment arrangements or similar arrangements.
    Sec. 803. Restriction on undefinitized contract actions.
    Sec. 804. Limitation and report on payment of restructuring costs under
               defense contracts.
    Sec. 805. Increased price limitation on purchases of right-hand drive
               vehicles.
    Sec. 806. Multiyear procurement contracts.
    Sec. 807. Audit of procurement of military clothing and clothing-related
               items by military installations in the United States.
    Sec. 808. Limitation on allowability of compensation for certain
               contractor personnel.
    Sec. 809. Elimination of certification requirement for grants.
    Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
    Sec. 811. Item-by-item and country-by-country waivers of domestic source
               limitations.

                   Subtitle B--Acquisition Assistance Programs

    Sec. 821. One-year extension of pilot mentor-protege program.
    Sec. 822. Test program for negotiation of comprehensive subcontracting
               plans.

                      Subtitle C--Administrative Provisions

    Sec. 831. Retention of expired funds during the pendency of contract
               litigation.
    Sec. 832. Protection of certain information from disclosure.
    Sec. 833. Unit cost reports.
    Sec. 834. Plan for providing contracting information to general public
               and small businesses.
    Sec. 835. Two-year extension of crediting of certain purchases toward
               meeting
               subcontracting goals.

                            Subtitle D--Other Matters

    Sec. 841. Repeal of certain acquisition requirements and reports.
    Sec. 842. Use of major range and test facility installations by
               commercial entities.
    Sec. 843. Requirement to develop and maintain list of firms not eligible
               for defense contracts.
    Sec. 844. Sense of Congress regarding allowability of costs of employee
               stock ownership plans.
    Sec. 845. Expansion of personnel eligible to participate in
               demonstration project
               relating to acquisition workforce.
    Sec. 846. Time for submission of annual report relating to Buy American
               Act.
    Sec. 847. Repeal of requirement for contractor guarantees on major
               weapon
               systems.
    Sec. 848. Requirements relating to micro-purchases.
    Sec. 849. Promotion rate for officers in an acquisition corps.
    Sec. 850. Use of electronic commerce in Federal procurement.
    Sec. 851. Conformance of policy on performance based management of
               civilian
               acquisition programs with policy established for defense
               acquisition
               programs.

    [[Page 111 STAT. 1637]]

    Sec. 852. Modification of process requirements for the solutions-based
               contracting pilot program.
    Sec. 853. Guidance and standards for defense acquisition workforce
               training
               requirements.
    Sec. 854. Study and report to Congress assessing dependence on foreign
               sources for resistors and capacitors.
    Sec. 855. Department of Defense and Federal Prison Industries joint
               study.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

    Subtitle A--Department of Defense Positions and Organizations and Other
                                 General Matters

    Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for
               National Guard matters and for Reserve matters.
    Sec. 902. Use of CINC Initiative Fund for force protection.
    Sec. 903. Revision to required frequency for provision of policy
               guidance for contingency plans.
    Sec. 904. Annual justification for Department of Defense advisory
               committees.
    Sec. 905. Airborne reconnaissance management.
    Sec. 906. Termination of the Armed Services Patent Advisory Board.
    Sec. 907. Coordination of Department of Defense criminal investigations
               and
               audits.

             Subtitle B--Department of Defense Personnel Management

    Sec. 911. Reduction in personnel assigned to management headquarters and
               headquarters support activities.
    Sec. 912. Defense acquisition workforce.

              Subtitle C--Department of Defense Schools and Centers

    Sec. 921. Professional military education schools.
    Sec. 922. Center for Hemispheric Defense Studies.
    Sec. 923. Correction to reference to George C. Marshall European Center
               for
               Security Studies.

         Subtitle D--Department of Defense Intelligence-Related Matters

    Sec. 931. Transfer of certain military department programs from TIARA
               budget
               aggregation.
    Sec. 932. Report on coordination of access of commanders and deployed
               units to
               intelligence collected and analyzed by the intelligence
               community.
    Sec. 933. Protection of imagery, imagery intelligence, and geospatial
               information and data.
    Sec. 934. POW/MIA intelligence analysis.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Incorporation of classified annex.
    Sec. 1003. Authority for obligation of unauthorized fiscal year 1997
               defense appropriations.
    Sec. 1004. Authorization of prior emergency supplemental appropriations
               for fiscal year 1997.
    Sec. 1005. Increase in fiscal year 1996 transfer authority.
    Sec. 1006. Revision of authority for Fisher House trust funds.
    Sec. 1007. Flexibility in financing closure of certain outstanding
               contracts for which a small final payment is due.
    Sec. 1008. Biennial financial management improvement plan.
    Sec. 1009. Estimates and requests for procurement and military
               construction for the reserve components.
    Sec. 1010. Sense of Congress regarding funding for reserve component
               modernization not requested in President's budget.
    Sec. 1011. Management of working-capital funds.
    Sec. 1012. Authority of Secretary of Defense to settle claims relating
               to pay,
               allowances, and other benefits.
    Sec. 1013. Payment of claims by members for loss of personal property
               due to
               flooding in Red River Basin.
    Sec. 1014. Advances for payment of public services.
    Sec. 1015. United States Man and the Biosphere Program limitation.

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel
               Register.

    [[Page 111 STAT. 1638]]

    Sec. 1022. Authority to enter into a long-term charter for a vessel in
               support of the Surveillance Towed-Array Sensor (SURTASS)
               program.
    Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
    Sec. 1024. Congressional review period with respect to transfer of ex-
               U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
    Sec. 1025. Transfers of naval vessels to certain foreign countries.
    Sec. 1026. Reports relating to export of vessels that may contain
               polychlorinated biphenyls.
    Sec. 1027. Conversion of defense capability preservation authority to
               Navy shipbuilding capability preservation authority.

                       Subtitle C--Counter-Drug Activities

    Sec. 1031. Use of National Guard for State drug interdiction and
               counter-drug
               activities.
    Sec. 1032. Authority to provide additional support for counter-drug
               activities of
               Mexico.
    Sec. 1033. Authority to provide additional support for counter-drug
               activities of Peru and Colombia.
    Sec. 1034. Annual report on development and deployment of narcotics
               detection technologies.

            Subtitle D--Miscellaneous Report Requirements and Repeals

    Sec. 1041. Repeal of miscellaneous reporting requirements.
    Sec. 1042. Study of transfer of modular airborne fire fighting system.
    Sec. 1043. Overseas infrastructure requirements.
    Sec. 1044. Additional matters for annual report on activities of the
               General
               Accounting Office.
    Sec. 1045. Eye safety at small arms firing ranges.
    Sec. 1046. Reports on Department of Defense procedures for investigating
               military aviation accidents and for notifying and assisting
               families of victims.

                    Subtitle E--Matters Relating to Terrorism

    Sec. 1051. Oversight of counterterrorism and antiterrorism activities;
               report.
    Sec. 1052. Provision of adequate troop protection equipment for Armed
               Forces
               personnel engaged in peace operations; report on
               antiterrorism activities and protection of personnel.

                Subtitle F--Matters Relating to Defense Property

    Sec. 1061. Lease of nonexcess personal property of military departments.
    Sec. 1062. Lease of nonexcess property of Defense Agencies.
    Sec. 1063. Donation of excess chapel property to churches damaged or
               destroyed by arson or other acts of terrorism.
    Sec. 1064. Authority of the Secretary of Defense concerning disposal of
               assets under cooperative agreements on air defense in Central
               Europe.
    Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and
               ammunition components.
    Sec. 1066. Transfer of B-17 aircraft to museum.
    Sec. 1067. Report on disposal of excess and surplus materials.

                            Subtitle G--Other Matters

    Sec. 1071. Authority for special agents of the Defense Criminal
               Investigative
               Service to execute warrants and make arrests.
    Sec. 1072. Study of investigative practices of military criminal
               investigative organizations relating to sex crimes.
    Sec. 1073. Technical and clerical amendments.
    Sec. 1074. Sustainment and operation of the Global Positioning System.
    Sec. 1075. Protection of safety-related information voluntarily provided
               by air
               carriers.
    Sec. 1076. National Guard Challenge Program to create opportunities for
               civilian youth.
    Sec. 1077. Disqualification from certain burial-related benefits for
               persons
               convicted of capital crimes.
    Sec. 1078. Restrictions on the use of human subjects for testing of
               chemical or
               biological agents.
    Sec. 1079. Treatment of military flight operations.
    Sec. 1080. Naturalization of certain foreign nationals who serve
               honorably in the Armed Forces during a period of conflict.
    Sec. 1081. Applicability of certain pay authorities to members of
               specified independent study organizations.
    Sec. 1082. Display of POW/MIA flag.

    [[Page 111 STAT. 1639]]

    Sec. 1083. Program to commemorate 50th anniversary of the Korean
               conflict.
    Sec. 1084. Commendation of members of the Armed Forces and Government
               civilian personnel who served during the Cold War;
               certificate of recognition.
    Sec. 1085. Sense of Congress on granting of statutory Federal charters.
    Sec. 1086. Sense of Congress regarding military voting rights.
    Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed
               Forces of the United States.
    Sec. 1088. Five-year extension of aviation insurance program.

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

    Sec. 1101. Use of prohibited constraints to manage Department of Defense

               personnel.
    Sec. 1102. Veterans' preference status for certain veterans who served
               on active duty during the Persian Gulf War.
    Sec. 1103. Repeal of deadline for placement consideration of
               involuntarily
               separated military reserve technicians.
    Sec. 1104. Rate of pay of Department of Defense overseas teachers upon
               transfer to General Schedule position.
    Sec. 1105. Garnishment and involuntary allotment.
    Sec. 1106. Extension and revision of voluntary separation incentive pay
               authority.
    Sec. 1107. Use of approved fire-safe accommodations by Government
               employees on official business.
    Sec. 1108. Navy higher education pilot program regarding administration
               of
               business relationships between Government and private sector.
    Sec. 1109. Authority for Marine Corps University to employ civilian
               faculty
               members.

                  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. Withdrawal of United States ground forces from Republic of
               Bosnia and Herzegovina.
    Sec. 1204. Secretary of Defense reports on tasks carried out by United
               States forces.
    Sec. 1205. Presidential report on situation in Republic of Bosnia and
               Herzegovina.
    Sec. 1206. Definitions.

            Subtitle B--Export Controls on High Performance Computers

    Sec. 1211. Export approvals for high performance computers.
    Sec. 1212. Report on exports of high performance computers.
    Sec. 1213. Post-shipment verification of export of high performance
               computers.
    Sec. 1214. GAO study on certain computers; end user information
               assistance.
    Sec. 1215. Congressional committees.

                            Subtitle C--Other Matters

    Sec. 1221. Defense burdensharing.
    Sec. 1222. Temporary use of general purpose vehicles and nonlethal
               military equipment under acquisition and cross servicing
               agreements.
    Sec. 1223. Sense of Congress and reports regarding financial costs of
               enlargement of the North Atlantic Treaty Organization.
    Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic
               Treaty Organization.
    Sec. 1225. Sense of the Congress relating to level of United States
               military personnel in the East Asia and Pacific region.
    Sec. 1226. Report on future military capabilities and strategy of the
               People's
               Republic of China.
    Sec. 1227. Sense of Congress on need for Russian openness on the
               Yamantau Mountain project.
    Sec. 1228. Assessment of the Cuban threat to United States national
               security.
    Sec. 1229. Report on Helsinki Joint statement.
    Sec. 1230. Commendation of Mexico on free and fair elections.
    Sec. 1231. Sense of Congress regarding Cambodia.
    Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

    Sec. 1301. Presidential report concerning detargeting of Russian
               strategic missiles.
    Sec. 1302. Limitation on retirement or dismantlement of strategic
               nuclear delivery systems.
    Sec. 1303. Assistance for facilities subject to inspection under the
               Chemical
               Weapons Convention.

    [[Page 111 STAT. 1640]]

    Sec. 1304. Transfers of authorizations for high-priority
               counterproliferation
               programs.
    Sec. 1305. Advice to the President and Congress regarding the safety,
               security, and reliability of United States nuclear weapons
               stockpile.
    Sec. 1306. Reconstitution of commission to assess the ballistic missile
               threat to the United States.
    Sec. 1307. Sense of Congress regarding the relationship between United
               States
               obligations under the Chemical Weapons Convention and
               environmental laws.
    Sec. 1308. Extension of counterproliferation authorities for support of
               United
               Nations Special Commission on Iraq.
    Sec. 1309. Annual report on moratorium on use by Armed Forces of
               antipersonnel landmines.

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

    Sec. 1401. Specification of Cooperative Threat Reduction programs and
               funds.
    Sec. 1402. Funding allocations.
    Sec. 1403. Prohibition on use of funds for specified purposes.
    Sec. 1404. Limitation on use of funds for projects related to START II
               Treaty until submission of certification.
    Sec. 1405. Limitation on use of funds for chemical weapons destruction
               facility.
    Sec. 1406. Limitation on use of funds for destruction of chemical
               weapons.
    Sec. 1407. Limitation on use of funds for storage facility for Russian
               fissile
               material.
    Sec. 1408. Limitation on use of funds for weapons storage security.
    Sec. 1409. Report on issues regarding payment of taxes, duties, and
               other
               assessments on assistance provided to Russia under
               Cooperative Threat Reduction programs.
    Sec. 1410. Availability of funds.

        TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

    Sec. 1501. Recognition and grant of Federal charter.
    Sec. 1502. Powers.
    Sec. 1503. Purposes.
    Sec. 1504. Service of process.
    Sec. 1505. Membership.
    Sec. 1506. Board of directors.
    Sec. 1507. Officers.
    Sec. 1508. Restrictions.
    Sec. 1509. Liability.
    Sec. 1510. Maintenance and inspection of books and records.
    Sec. 1511. Audit of financial transactions.
    Sec. 1512. Annual report.
    Sec. 1513. Reservation of right to alter, amend, or repeal charter.
    Sec. 1514. Tax-exempt status required as condition of charter.
    Sec. 1515. Termination.
    Sec. 1516. Definition of State.

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Sec. 2001. Short title.

                                 TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Correction in authorized uses of funds, Fort Irwin,
               California.

                                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 of military construction project at Naval
               Station, Pascagoula, Mississippi, for which funds have been
               appropriated.

    [[Page 111 STAT. 1641]]

    Sec. 2206. Increase in authorization for military construction projects
               at Naval
               Station Roosevelt Roads, Puerto Rico.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
               projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Authorization of military construction project at McConnell
               Air Force Base, Kansas, for which funds have been
               appropriated.

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
               projects.
    Sec. 2402. Military housing planning and design.
    Sec. 2403. Improvements to military family housing units.
    Sec. 2404. Energy conservation projects.
    Sec. 2405. Authorization of appropriations, Defense Agencies.
    Sec. 2406. Clarification of authority relating to fiscal year 1997
               project at Naval
               Station, Pearl Harbor, Hawaii.
    Sec. 2407. Correction in authorized uses of funds, McClellan Air Force
               Base,
               California.
    Sec. 2408. Modification of authority to carry out certain fiscal year
               1995 projects.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
               acquisition projects.
    Sec. 2602. Authorization of military construction projects for which
               funds have been appropriated.
    Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

             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 1995
               projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 1994
               projects.
    Sec. 2704. Extension of authorizations of certain fiscal year 1993
               projects.
    Sec. 2705. Extension of authorizations of certain fiscal year 1992
               projects.
    Sec. 2706. Extension of availability of funds for construction of
               relocatable over-the-horizon radar, Naval Station Roosevelt
               Roads, Puerto Rico.
    Sec. 2707. Effective date.

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Use of mobility enhancement funds for unspecified minor
               construction.
    Sec. 2802. Limitation on use of operation and maintenance funds for
               facility repair projects.
    Sec. 2803. Leasing of military family housing, United States Southern
               Command, Miami, Florida.
    Sec. 2804. Use of financial incentives provided as part of energy
               savings and water conservation activities.
    Sec. 2805. Congressional notification requirements regarding use of
               Department of Defense housing funds for investments in
               nongovernmental entities.

             Subtitle B--Real Property and Facilities Administration

    Sec. 2811. Increase in ceiling for minor land acquisition projects.
    Sec. 2812. Permanent authority regarding conveyance of utility systems.
    Sec. 2813. Administrative expenses for certain real property
               transactions.
    Sec. 2814. Screening of real property to be conveyed by Department of
               Defense.
    Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78,
               Brigham City, Utah.
    Sec. 2816. Fire protection and hazardous materials protection at Fort
               Meade,
               Maryland.

                Subtitle C--Defense Base Closure and Realignment

    Sec. 2821. Consideration of military installations as sites for new
               Federal facilities.

    [[Page 111 STAT. 1642]]

    Sec. 2822. Adjustment and diversification assistance to enhance
               performance of
               military family support services by private sector sources.
    Sec. 2823. Security, fire protection, and other services at property
               formerly associated with Red River Army Depot, Texas.
    Sec. 2824. Report on closure and realignment of military installations.
    Sec. 2825. Sense of Senate regarding utilization of savings derived from
               base
               closure process.
    Sec. 2826. Prohibition against certain conveyances of property at Naval
               Station, Long Beach, California.

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

    Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
    Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant,
               Oklahoma.
    Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,
               Illinois.
    Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
    Sec. 2835. Land conveyances, Fort Dix, New Jersey.
    Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
    Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral
               County, Nevada.
    Sec. 2838. Expansion of land conveyance authority, Indiana Army
               Ammunition Plant, Charlestown, Indiana.
    Sec. 2839. Modification of land conveyance, Lompoc, California.
    Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal,
               Colorado.
    Sec. 2841. Correction of land conveyance authority, Army Reserve Center,
               Anderson, South Carolina.

                            Part II--Navy Conveyances

    Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick,
               Maine.
    Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No.
               464,
               Oyster Bay, New York.
    Sec. 2853. Correction of lease authority, Naval Air Station, Meridian,
               Mississippi.

                         Part III--Air Force Conveyances

    Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
    Sec. 2862. Land conveyance, March Air Force Base, California.
    Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
    Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
    Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre
               Training Site, Montana.
    Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor,
               Maine.
    Sec. 2867. Study of land exchange options, Shaw Air Force Base, South
               Carolina.

                            Subtitle E--Other Matters

    Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
    Sec. 2872. Long-term lease of property, Naples, Italy.
    Sec. 2873. Designation of military family housing at Lackland Air Force
               Base, Texas, in honor of Frank Tejeda, a former Member of the
               House of
               Representatives.
    Sec. 2874. Fiber-optics based telecommunications linkage of military
               installations.

                        TITLE XXIX--SIKES ACT IMPROVEMENT

    Sec. 2901. Short title.
    Sec. 2902. Definition of Sikes Act for purposes of amendments.
    Sec. 2903. Codification of short title of Act.
    Sec. 2904. Preparation of integrated natural resources management plans.
    Sec. 2905. Review for preparation of integrated natural resources
               management plans.
    Sec. 2906. Transfer of wildlife conservation fees from closed military
               installations.
    Sec. 2907. Annual reviews and reports.
    Sec. 2908. Cooperative agreements.
    Sec. 2909. Federal enforcement.
    Sec. 2910. Natural resources management services.
    Sec. 2911. Definitions.
    Sec. 2912. Repeal of superseded provision.
    Sec. 2913. Technical amendments.
    Sec. 2914. Authorizations of appropriations.

    [[Page 111 STAT. 1643]]

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

                    Subtitle B--Recurring General Provisions

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Memorandum of understanding for use of national laboratories
               for
               ballistic missile defense programs.
    Sec. 3132. Defense environmental management privatization projects.
    Sec. 3133. International cooperative stockpile stewardship.
    Sec. 3134. Modernization of enduring nuclear weapons complex.
    Sec. 3135. Tritium production.
    Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel
               rods and other legacy nuclear materials at the Savannah River
               Site.
    Sec. 3137. Limitations on use of funds for laboratory directed research
               and development purposes.
    Sec. 3138. Pilot program relating to use of proceeds of disposal or
               utilization of
               certain Department of Energy assets.
    Sec. 3139. Modification and extension of authority relating to
               appointment of
               certain scientific, engineering, and technical personnel.
    Sec. 3140. Limitation on use of funds for subcritical nuclear weapons
               tests.
    Sec. 3141. Limitation on use of certain funds until future use plans are
               submitted.

                            Subtitle D--Other Matters

    Sec. 3151. Plan for stewardship, management, and certification of
               warheads in the nuclear weapons stockpile.
    Sec. 3152. Repeal of obsolete reporting requirements.
    Sec. 3153. Study and funding relating to implementation of workforce
               restructuring plans.
    Sec. 3154. Report and plan for external oversight of national
               laboratories.
    Sec. 3155. University-based research collaboration program.
    Sec. 3156. Stockpile stewardship program.
    Sec. 3157. Reports on advanced supercomputer sales to certain foreign
               nations.
    Sec. 3158. Transfers of real property at certain Department of Energy
               facilities.
    Sec. 3159. Requirement to delegate certain authorities to site manager
               of Hanford Reservation.
    Sec. 3160. Submittal of biennial waste management reports.
    Sec. 3161. Department of Energy Security Management Board.
    Sec. 3162. Submittal of annual report on status of security functions at
               nuclear weapons facilities.
    Sec. 3163. Modification of authority on Commission on Maintaining United
               States Nuclear Weapons Expertise.
    Sec. 3164. Land transfer, Bandelier National Monument.
    Sec. 3165. Final settlement of Department of Energy community assistance
               obligations with respect to Los Alamos National Laboratory,
               New Mexico.
    Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge,
               Tennessee.
    Sec. 3167. Support for public education in the vicinity of Los Alamos
               National
               Laboratory, New Mexico.
    Sec. 3168. Improvements to Greenville Road, Livermore, California.

    [[Page 111 STAT. 1644]]

    Sec. 3169. Report on alternative system for availability of funds.
    Sec. 3170. Report on remediation under the Formerly Utilized Sites
               Remedial
               Action Program.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.
    Sec. 3202. Report on external regulation of defense nuclear facilities.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    Sec. 3301. Definitions.
    Sec. 3302. Authorized uses of stockpile funds.
    Sec. 3303. Disposal of beryllium copper master alloy in National Defense
               Stockpile.
    Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
    Sec. 3305. Disposal of cobalt in National Defense Stockpile.
    Sec. 3306. Required procedures for disposal of strategic and critical
               materials.
    Sec. 3307. Return of surplus platinum from the Department of the
               Treasury.

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.
    Sec. 3402. Price requirement on sale of certain petroleum during fiscal
               year 1998.
    Sec. 3403. Repeal of requirement to assign Navy officers to Office of
               Naval
               Petroleum and Oil Shale Reserves.
    Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1
               and 3.

                       TITLE XXXV--PANAMA CANAL COMMISSION

          Subtitle A--Authorization of Expenditures From Revolving Fund

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

               Subtitle B--Facilitation of Panama Canal Transition

    Sec. 3511. Short title; references.
    Sec. 3512. Definitions relating to canal transition.

    Part I--Transition Matters Relating to Commission Officers and Employees

    Sec. 3521. Authority for the Administrator of the Commission to accept
               appointment as the Administrator of the Panama Canal
               Authority.
    Sec. 3522. Post-Canal transfer personnel authorities.
    Sec. 3523. Enhanced authority of Commission to establish compensation of

               Commission officers and employees.
    Sec. 3524. Travel, transportation, and subsistence expenses for
               Commission personnel no longer subject to Federal travel
               regulation.
    Sec. 3525. Enhanced recruitment and retention authorities.
    Sec. 3526. Transition separation incentive payments.
    Sec. 3527. Labor-management relations.
    Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay
               for
               certain employees separated by Panama Canal Authority after
               Canal Transfer Date.

    Part II--Transition Matters Relating to Operation and Administration of
                                      Canal

    Sec. 3541. Establishment of procurement system and Board of Contract
               Appeals.
    Sec. 3542. Transactions with the Panama Canal Authority.
    Sec. 3543. Time limitations on filing of claims for damages.
    Sec. 3544. Tolls for small vessels.
    Sec. 3545. Date of actuarial evaluation of FECA liability.
    Sec. 3546. Appointment of notaries public.
    Sec. 3547. Commercial services.
    Sec. 3548. Transfer from President to Commission of certain regulatory
               functions
               relating to employment classification appeals.
    Sec. 3549. Enhanced printing authority.
    Sec. 3550. Technical and conforming amendments.

                      TITLE XXXVI--MARITIME ADMINISTRATION

    Sec. 3601. Authorization of appropriations for fiscal year 1998.
    Sec. 3602. Repeal of obsolete annual report requirement concerning
               relative cost of shipbuilding in the various coastal
               districts of the United States.
    Sec. 3603. Provisions relating to maritime security fleet program.

    [[Page 111 STAT. 1645]]

    Sec. 3604. Authority to utilize replacement vessels and capacity.
    Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
    Sec. 3606. Determination of gross tonnage for purposes of tank vessel
               double hull requirements.

    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. Army helicopter modernization plan.
    Sec. 112. Multiyear procurement authority for specified Army programs.
    Sec. 113. M113 vehicle modifications.

                            Subtitle C--Navy Programs

    Sec. 121. New Attack Submarine program.
    Sec. 122. CVN-77 nuclear aircraft carrier program.
    Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

                         Subtitle D--Air Force Programs

    Sec. 131. Authorization for B-2 bomber program.
    Sec. 132. ALR radar warning receivers.
    Sec. 133. Analysis of requirements for replacement of engines on
               military aircraft derived from Boeing 707 aircraft.

                            Subtitle E--Other Matters

    Sec. 141. Pilot program on sales of manufactured articles and services
               of certain Army industrial facilities without regard to
               availability from domestic sources.
    Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

                   Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    for procurement for the Army as follows:
                (1) For aircraft, $1,316,233,000.
                (2) For missiles, $742,639,000.

    [[Page 111 STAT. 1646]]

                (3) For weapons and tracked combat vehicles, $1,297,641,000.
                (4) For ammunition, $1,011,193,000.
                (5) For other procurement, $2,566,208,000.

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for fiscal
    year 1998 for procurement for the Navy as follows:
                (1) For aircraft, $6,437,330,000.
                (2) For weapons, including missiles and torpedoes,
            $1,089,443,000.
                (3) For shipbuilding and conversion, $8,195,269,000.
                (4) For other procurement, $2,970,867,000.

        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 1998 for procurement for the Marine Corps in the amount
    of $460,081,000.
        (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 $364,744,000.

    SEC. 103. AIR FORCE.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    for procurement for the Air Force as follows:
                (1) For aircraft, $6,425,749,000.
                (2) For missiles, $2,376,301,000.
                (3) For ammunition, $398,534,000.
                (4) For other procurement, $6,543,580,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    for Defense-wide procurement in the amount of $2,057,150,000.

    SEC. 105. RESERVE COMPONENTS.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    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, $70,000,000.
                (2) For the Air National Guard, $303,000,000.
                (3) For the Army Reserve, $75,000,000.
                (4) For the Naval Reserve, $80,000,000.
                (5) For the Air Force Reserve, $50,000,000.
                (6) For the Marine Corps Reserve, $65,000,000.

    SEC. 106. DEFENSE INSPECTOR GENERAL.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    for procurement for the Inspector General of the Department of Defense
    in the amount of $1,800,000.

    SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

        There is hereby authorized to be appropriated for fiscal year 1998
    the amount of $600,700,000 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.

    [[Page 111 STAT. 1647]]

    SEC. 108. DEFENSE HEALTH PROGRAMS.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    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 $274,068,000.

    SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    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 $1,231,000.

                            Subtitle B--Army Programs

    SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

        (a) Limitation.--Not more than 80 percent of the total of the
    amounts authorized to be appropriated pursuant to section 101(1),
    105(1), and 105(3) for modifications or upgrades of helicopters may be
    obligated before the date that is 30 days after the date on which the
    Secretary of the Army submits to the congressional defense committees a
    comprehensive plan for the modernization of the Army's helicopter fleet.
        (b) Content of Plan.--The plan required by subsection (a) shall
    include the following:
                (1) A detailed assessment of the Army's present and future
            helicopter requirements and present and future helicopter
            inventory, including number of aircraft, age of aircraft,
            availability of spare parts, flight hour costs, roles and
            functions assigned to the fleet as a whole and to its individual
            types of aircraft, and the mix of active component aircraft and
            reserve component aircraft in the fleet.
                (2) Estimates and analysis of requirements and funding
            proposed for procurement of new aircraft.
                (3) An analysis of the requirements for and funding proposed
            for extended service plans or service life extension plans for
            fleet aircraft.
                (4) A plan for retiring aircraft no longer required or
            capable of performing assigned functions, including a discussion
            of opportunities to eliminate older aircraft models and to focus
            future funding on current or future generation aircraft.
                (5) The implications of the plan for the defense industrial
            base.

        (c) Relationship to Future-Years Defense Program.--The Secretary of
    the Army shall design the plan under subsection (a) so that the plan
    could be implemented within the funding levels expected to be available
    for Army aircraft programs in the next future-years defense program to
    be submitted to Congress pursuant to section 221(a) of title 10, United
    States Code. The Secretary shall include in the plan a certification
    that the program of the Army prepared for inclusion in the future-years
    defense program submitted to Congress in 1998 pursuant to section 221(a)
    of title 10, United States Code, included full funding for
    implementation of the plan.

    [[Page 111 STAT. 1648]]

    SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.

        (a) AH-64D Longbow Apache Fire Control Radar.--Beginning with the
    fiscal year 1998 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 AH-64D
    Longbow Apache fire control radar.
        (b) Medium Tactical Vehicles.--Beginning with the fiscal year 1998
    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 vehicles of the Family of Medium
    Tactical Vehicles. The contract may be for a term of four years and may
    include an option to extend the contract for one additional year.

    SEC. 113. M113 VEHICLE MODIFICATIONS.

        Of the amount made available for the Army pursuant to section
    101(3), $35,244,000 shall be available only for the procurement and
    installation of A3 upgrade kits for the M113 vehicle.

                            Subtitle C--Navy Programs

    SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

        (a) Amounts Authorized From SCN Account.--Of the amounts authorized
    to be appropriated by section 102(a)(3) for fiscal year 1998,
    $2,599,800,000 is available for the New Attack Submarine Program.
        (b) Contract Authority.--(1) The Secretary of the Navy may enter
    into a contract for the procurement of four submarines under the New
    Attack Submarine program.
        (2) Any contract entered into under paragraph (1)--
                (A) shall, notwithstanding section 2304(k) of title 10,
            United States Code, be awarded to one of the two eligible
            shipbuilders as the prime contractor on the condition that the
            prime contractor enter into one or more subcontracts (under such
            prime contract) with the other of the two eligible shipbuilders
            as contemplated in the New Attack Submarine Team Agreement; and
                (B) shall provide for--
                        (i) construction of the first submarine in fiscal
                    year 1998; and
                        (ii) advance construction and advance procurement of
                    materiel for the second, third, and fourth submarines in
                    fiscal year 1998.

        (3) The following shipbuilders are eligible for a contract under
    this subsection:
                (A) The Electric Boat Corporation.
                (B) The Newport News Shipbuilding and Drydock Company.

        (4) In paragraph (2)(A), the term ``New Attack Submarine Team
    Agreement'' means the agreement known as the Team Agreement between
    Electric Boat Corporation and Newport News Shipbuilding and Drydock
    Company, dated February 25, 1997, that was submitted to Congress by the
    Secretary of the Navy on March 31, 1997.
        (c) Limitation of Liability.--If a contract entered into under this
    section is terminated, the United States shall not be liable

    [[Page 111 STAT. 1649]]

    for termination costs in excess of the total amount appropriated for the
    New Attack Submarine program.
        (d) Repeals of Superseded Provisions of Previous Defense
    Authorization Laws.--(1) Section 131 of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    206) is amended--
                (A) in subsection (a)(1)(B)--
                        (i) in clause (i), by striking out ``, which shall
                    be built by Electric Boat Division''; and
                        (ii) in clause (ii), by striking out ``, which shall
                    be built by Newport News Shipbuilding''; and
                (B) in subsection (b), by striking out paragraph (1).

        (2) Section 121 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2441) is amended--
                (A) in subsection (a)--
                        (i) in paragraph (1)(B), by striking out ``to be
                    built by Electric Boat Division''; and
                        (ii) in paragraph (1)(C), by striking out ``to be
                    built by Newport News Shipbuilding'';
                (B) in subsection (d), by striking out paragraph (2);
                (C) in subsection (e), by striking out paragraph (1); and
                (D) in subsection (g), by striking out ``the committees
            specified in subsection (e)(1)'' in paragraphs (3) and (4) and
            inserting in lieu thereof ``the Committee on Armed Services of
            the Senate and the Committee on National Security of the House
            of Representatives''.

        (e) Inapplicability of Superseded Aspects of Attack Submarine
    Development Plan.--The Secretary of Defense and the Secretary of the
    Navy are not required to carry out the portions of the program plan
    submitted under subsection (c) of section 131 of the National Defense
    Authorization Act for Fiscal Year 1996 that are included in the plan
    pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such
    subsection.

    SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

        (a) Authorization of Ship.--The Secretary of the Navy is authorized
    to procure the aircraft carrier to be designated CVN-77, subject to the
    availability of appropriations for that purpose.
        (b) Amount Authorized From SCN Account.--Of the amount authorized to
    be appropriated by section 102(a)(3) for fiscal year 1998, $50,000,000
    is available for the advance procurement and advance construction of
    components (including nuclear components) for the CVN-77 aircraft
    carrier program. The Secretary of the Navy may enter into a contract or
    contracts with the shipbuilder and other entities for the advance
    procurement and advance construction of those components.
        (c) Other Funds.--Of the funds authorized to be appropriated under
    this Act for programs, projects, and activities of the military
    departments and Defense Agencies, other than the CVN-77 aircraft carrier
    program, up to $295,000,000 may be made available, as the Secretary of
    Defense may direct, for the CVN-77 aircraft carrier program. Authority
    to make transfers under this subsection is in addition to the transfer
    authority provided in section 1001.
        (d) Management of Funds.--The Secretary of the Navy shall obligate
    and expend the funds available for advance procurement and advance
    construction of components for the CVN-77 aircraft carrier program for
    fiscal year 1998 in a manner that is designed

    [[Page 111 STAT. 1650]]

    to result in such cost savings as may be required in order to meet the
    cost limitation specified in subsection (f).
        (e) Adjustments to Future-Years Defense Program.--The Secretary of
    Defense shall make such plans for the CVN-77 aircraft carrier program as
    are necessary to attain for the program the cost savings that are
    contemplated for the procurement of the CVN-77 aircraft carrier in the
    March 1997 procurement plan.
        (f) Limitation on Total Cost of Procurement.--(1) The Secretary of
    the Navy shall structure the program for the procurement of the CVN-77
    aircraft carrier, and shall manage that program, so that the total cost
    of the procurement of the CVN-77 aircraft carrier does not exceed
    $4,600,000,000 (such amount being the estimated cost for the procurement
    of the CVN-77 aircraft carrier in the March 1997 procurement plan).
        (2) The Secretary of the Navy may adjust the amount set forth in
    paragraph (1) for the CVN-77 aircraft carrier program by the following:
                (A) The amounts of outfitting costs and post-delivery costs
            incurred for the program.
                (B) The amounts of increases or decreases in costs
            attributable to economic inflation after September 30, 1997.
                (C) The amounts of increases or decreases in costs
            attributable to compliance with changes in Federal, State, or
            local laws enacted after September 30, 1997.
                (D) The amounts of increases or decreases in costs of the
            program that are attributable to new technology built into the
            CVN-77 aircraft carrier, as compared to the technology built
            into the baseline design of the CVN-76 aircraft carrier.
                (E) The amounts of increases or decreases in costs resulting
            from changes the Secretary proposes in the funding plan (as
            contemplated in the March 1997 procurement plan) on which the
            projected savings are based.

        (3) The Secretary of the <<NOTE: Notice.>>  Navy shall annually
    submit to Congress, at the same time as the budget is submitted under
    section 1105(a) of title 31, United States Code, written notice of any
    change in the amount set forth in paragraph (1) during the preceding
    fiscal year that the Secretary has determined to be associated with a
    cost referred to in paragraph (2).

        (g) March 1997 Procurement Plan Defined.--In this section, the term
    ``March 1997 procurement plan'' means the procurement plan for the CVN-
    77 aircraft carrier that was submitted to the Navy and Congress by the
    shipbuilder in March 1997.

    SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

        (a) Authority To Exclude Amounts Appropriated for Canceled
    Vessels.--(1) The Secretary of the Navy may exclude from the application
    of the cost limitation for the Seawolf submarine program such amounts,
    not in excess of $272,400,000, as were appropriated for fiscal years
    1990, 1991, and 1992 for procurement of Seawolf-class submarines that
    have been canceled.
        (2) For the purposes of this subsection, the term ``cost limitation
    for the Seawolf submarine program'' means the limitation in section
    133(a) of the National Defense Authorization Act for Fiscal Year 1996
    (Public Law 104-106; 110 Stat. 211).

    [[Page 111 STAT. 1651]]

        (b) Determination and Report by Inspector General.--(1) Not later
    than March 30, 1998, the Inspector General of the Department of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    containing the Inspector General's determination as to whether any
    further exclusion from, adjustment to exclusion from, or increase in the
    dollar amount of the cost limitation referred to in subsection (a) will
    be required.
        (2) The Inspector General shall include in the report the
    following:
                (A) A thorough and comprehensive accounting for the amount
            of $745,400,000 identified by the Secretary of the Navy as
            having been obligated or expended for the detailed design for
            Seawolf-class submarines that have been canceled and for the
            procurement of nuclear components and construction spare parts
            for those canceled submarines, including a statement of the
            current disposition of items specifically purchased using those
            funds.
                (B) Cost growth, if any, in the cost of construction of the
            SSN-21, SSN-22, and SSN-23 Seawolf-class submarines that has not
            been reported to Congress before the date of the report of the
            Inspector General.
                (C) The current cost estimate of the Secretary of the Navy
            for completion of the SSN-21, SSN-22, and SSN-23 Seawolf-class
            submarines.

        (3) The Inspector General shall include in the report such
    supporting information and analyses as the Inspector General considers
    appropriate for aiding in understanding the determination and findings
    of the Inspector General.

                         Subtitle D--Air Force Programs

    SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

        (a) Funding Availability.--Of the funds made available for
    procurement of aircraft for the Air Force for fiscal year 1998, the
    amount of $331,000,000 is available for long-lead activities related to
    the procurement of additional B-2 bomber aircraft. However, if the
    President determines that no additional B-2 bombers should be procured
    during fiscal year 1998 and certifies that decision to Congress, the
    funding authorized in the preceding sentence shall be made available to
    modify and repair the existing fleet of B-2 bomber aircraft.
        (b) Secretary of Defense To Preserve Options of President.--The
    Secretary of Defense shall ensure that all appropriate actions are taken
    to preserve the options of the President until the panel to review long-
    range airpower established by section 8131 of the Department of Defense
    Appropriations Act, 1998 (Public Law 105-56; 111 Stat. 1249), submits
    its report.

    SEC. 132. ALR RADAR WARNING RECEIVERS.

        (a) Cost and Operation Effectiveness Analysis.--The Secretary of the
    Air Force shall conduct a cost and operation effectiveness analysis of
    upgrading the ALR69 radar warning receiver as compared with the further
    acquisition of the ALR56M radar warning receiver.

    [[Page 111 STAT. 1652]]

        (b) Submission to Congress.--The Secretary shall submit the cost and
    operation effectiveness analysis to the congressional defense committees
    not later than April 2, 1998.

    SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON
                MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

        (a) Analysis 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 an analysis, to be carried out
    by the Under Secretary of Defense for Acquisition and Technology, of the
    requirements of the Department of Defense for replacing engines on the
    aircraft of the Department of Defense that are derived from the Boeing
    707 aircraft and the costs of meeting those requirements.
        (b) Content.--The analysis shall include the following:
                (1) The number of aircraft described in subsection (a) that
            are in the inventory of the Department of Defense as of October
            1, 1997, and the number of such aircraft that are projected to
            be in the inventory of the Department as of October 1, 2002, as
            of October 1, 2007, and as of October 1, 2012.
                (2) For each type of such aircraft, the estimated cost of
            operating the aircraft for each fiscal year beginning with
            fiscal year 1998 and ending with fiscal year 2014, taking into
            account historical patterns of usage and projected support
            costs.
                (3) For each type of such aircraft, the estimated costs and
            the benefits of replacing the engines on the aircraft, analyzed
            on the basis of the experience under the limited program for
            replacing the engines on RC-135 aircraft that was undertaken
            during fiscal years 1995, 1996, and 1997.
                (4) Various plans for replacement of engines that the Under
            Secretary considers best on the basis of costs and benefits.

        (c) Submission Deadline.--The analysis under subsection (a) shall be
    submitted not later than March 1, 1998.

                            Subtitle E--Other Matters

    SEC. 141. PILOT <<NOTE: 10 USC 4543 note.>>  PROGRAM ON SALES OF
                MANUFACTURED ARTICLES AND SERVICES OF CERTAIN ARMY
                INDUSTRIAL FACILITIES WITHOUT REGARD TO AVAILABILITY FROM
                DOMESTIC SOURCES.

        (a) Pilot Program Required.--During fiscal years 1998 and 1999, the
    Secretary of the Army shall carry out a pilot program to test the
    efficacy and appropriateness of selling manufactured articles and
    services of Army industrial facilities under section 4543 of title 10,
    United States Code, without regard to the availability of the articles
    and services from United States commercial sources. In carrying out the
    pilot program, the Secretary may use articles manufactured at, and
    services provided by, not more than three Army industrial facilities.
        (b) Temporary Waiver of Requirement for Determination of
    Unavailability From Domestic Source.--Under the pilot program, the
    Secretary of the Army is not required under section 4543(a)(5) of title
    10, United States Code, to determine whether an article or service is
    available from a commercial source located in the United States in the
    case of any of the following sales

    [[Page 111 STAT. 1653]]

    for which a solicitation of offers is issued during fiscal year 1998 or
    1999:
                (1) A sale of articles to be incorporated into a weapon
            system being procured by the Department of Defense.
                (2) A sale of services to be used in the manufacture of a
            weapon system being procured by the Department of Defense.

        (c) Review by Inspector <<NOTE: Reports.>>  General.--The Inspector
    General of the Department of Defense shall review the experience under
    the pilot program under this section and, not later than July 1, 1999,
    submit to Congress a report on the results of the review. The report
    shall contain the following:
                (1) The Inspector General's views regarding the extent to
            which the waiver under subsection (b) enhances the opportunity
            for United States manufacturers, assemblers, developers, and
            other concerns to enter into or participate in contracts and
            teaming arrangements with Army industrial facilities under
            weapon system programs of the Department of Defense.
                (2) The Inspector General's views regarding the extent to
            which the waiver under subsection (b) enhances the opportunity
            for Army industrial facilities referred to in section 4543(a) of
            title 10, United States Code, to enter into or participate in
            contracts and teaming arrangements with United States
            manufacturers, assemblers, developers, and other concerns under
            weapon system programs of the Department of Defense.
                (3) The Inspector General's views regarding the effect of
            the waiver under subsection (b) on the ability of small
            businesses to compete for the sale of manufactured articles or
            services in the United States in competitions to enter into or
            participate in contracts and teaming arrangements under weapon
            system programs of the Department of Defense.
                (4) Specific examples under the pilot program that support
            the Inspector General's views.
                (5) Any other information that the Inspector General
            considers pertinent regarding the effects of the waiver of
            section 4543(a)(5) of title 10, United States Code, under the
            pilot program on opportunities for United States manufacturers,
            assemblers, developers, or other concerns, and for Army
            industrial facilities, to enter into or participate in contracts
            and teaming arrangements under weapon system programs of the
            Department of Defense.
                (6) Any recommendations that the Inspector General considers
            appropriate regarding continuation or modification of the policy
            set forth in section 4543(a)(5) of title 10, United States Code.

    SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

        (a) Funding.--Amounts authorized to be appropriated under this title
    and title II are available for a NATO alliance ground surveillance
    capability that is based on the Joint Surveillance/Target Attack Radar
    System of the United States, as follows:
                (1) Of the amount authorized to be appropriated under
            section 101(5), $26,153,000.
                (2) Of the amount authorized to be appropriated under
            section 103(1), $10,000,000.
                (3) Of the amount authorized to be appropriated under
            section 201(1), $13,500,000.

    [[Page 111 STAT. 1654]]

                (4) Of the amount authorized to be appropriated under
            section 201(3), $26,061,000.

        (b) Authority.--(1) Subject to paragraph (2), the Secretary of
    Defense may utilize authority under section 2350b of title 10, United
    States Code, for contracting for the purposes of Phase I of a NATO
    Alliance Ground Surveillance capability that is based on the Joint
    Surveillance/Target Attack Radar System of the United States,
    notwithstanding the condition in such section that the authority be
    utilized for carrying out contracts or obligations incurred under
    section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).
        (2) The authority under paragraph (1) applies during the period that
    the conclusion of a cooperative project agreement for a NATO Alliance
    Ground Surveillance capability under section 27(d) of the Arms Export
    Control Act is pending, as determined by the Secretary of Defense.
        (c) Modification of Air Force Aircraft.--Amounts available pursuant
    to paragraphs (2) and (4) of subsection (a) may be used to provide for
    modifying two Air Force Joint Surveillance/Target Attack Radar System
    production aircraft to have a NATO Alliance Ground Surveillance
    capability that is based on the Joint Surveillance/Target Attack Radar
    System of the United States.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Dual-use technology program.
    Sec. 204. Reduction in amount for Federally Funded Research and
               Development Centers.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Manufacturing technology program.
    Sec. 212. Report on operational field assessments program.
    Sec. 213. Joint Strike Fighter program.
    Sec. 214. Kinetic energy tactical anti-satellite technology program.
    Sec. 215. Micro-satellite technology development program.
    Sec. 216. High altitude endurance unmanned vehicle program.
    Sec. 217. F-22 aircraft program.

                 Subtitle C--Ballistic Missile Defense Programs

    Sec. 231. National Missile Defense Program.
    Sec. 232. Budgetary treatment of amounts for procurement for ballistic
               missile
               defense programs.
    Sec. 233. Cooperative Ballistic Missile Defense program.
    Sec. 234. Annual report on threat posed to the United States by weapons
               of mass destruction, ballistic missiles, and cruise missiles.
    Sec. 235. Director of Ballistic Missile Defense Organization.
    Sec. 236. Repeal of required deployment dates for core theater missile
               defense
               programs.

                            Subtitle D--Other Matters

    Sec. 241. Restructuring of National Oceanographic Partnership Program
               organizations.
    Sec. 242. Maintenance and repair of real property at Air Force
               installations.
    Sec. 243. Expansion of eligibility for the Defense Experimental Program
               to Stimulate Competitive Research.
    Sec. 244. Bioassay testing of veterans exposed to ionizing radiation
               during military service.
    Sec. 245. Sense of Congress regarding Comanche program.

    [[Page 111 STAT. 1655]]

                   Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $4,633,495,000.
                (2) For the Navy, $7,774,877,000.
                (3) For the Air Force, $14,338,934,000.
                (4) For Defense-wide activities, $9,831,646,000, of which--
                        (A) $258,183,000 is authorized for the activities of
                    the Director, Test and Evaluation; and
                        (B) $27,384,000 is authorized for the Director of
                    Operational Test and Evaluation.

    SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

        (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated
    by section 201, $3,935,390,000 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.

    SEC. 203. DUAL-USE <<NOTE: 10 USC 2511 note.>>  SCIENCE AND TECHNOLOGY
                PROGRAM.

        (a) Funding 1998.--Of the amounts authorized to be appropriated by
    section 201, $75,000,000 is authorized for dual-use projects.
        (b) Goals.--(1) Subject to paragraph (3), it shall be the objective
    of the Secretary of each military department to obligate for dual-use
    projects in each fiscal year referred to in paragraph (2), out of the
    total amount authorized to be appropriated for such fiscal year for the
    applied research programs of the military department, the percent of
    such amount that is specified for that fiscal year in paragraph (2).
        (2) The objectives for fiscal years under paragraph (1) are as
    follows:
                (A) For fiscal year 1998, 5 percent.
                (B) For fiscal year 1999, 7 percent.
                (C) For fiscal year 2000, 10 percent.
                (D) For fiscal year 2001, 15 percent.

        (3) The Secretary of Defense may establish for a military department
    for a fiscal year an objective different from the objective set forth in
    paragraph (2) if the Secretary--
                (A) determines that compelling national security
            considerations require the establishment of the different
            objective; and
                (B) notifies Congress of the determination and the reasons
            for the determination.

        (c) Designation of Official for Dual-Use Programs.--(1) The
    Secretary of Defense shall designate a senior official in the Office of
    the Secretary of Defense to carry out responsibilities for dual-use
    projects under this subsection. The designated official shall report
    directly to the Under Secretary of Defense for Acquisition and
    Technology.

    [[Page 111 STAT. 1656]]

        (2) The primary responsibilities of the designated official shall
    include developing policy and overseeing the establishment of, and
    adherence to, procedures for ensuring that dual-use projects are
    initiated and administered effectively and that applicable commercial
    technologies are integrated into current and future military systems.
        (3) In carrying out the responsibilities, the designated official
    shall ensure that--
                (A) dual-use projects are consistent with the joint
            warfighting science and technology plan referred to in section
            270 of the National Defense Authorization Act for Fiscal Year
            1997 (Public Law 104-201; 10 U.S.C. 2501 note); and
                (B) the dual-use projects of the military departments and
            defense agencies of the Department of Defense are coordinated
            and avoid unnecessary duplication.

        (d) Financial Commitment of Non-Federal Government Participants.--
    The total amount of funds provided by a military department for a dual-
    use project entered into by the Secretary of that department shall not
    exceed 50 percent of the total cost of the project. In the case of a
    dual-use project initiated after the date of the enactment of this Act,
    the Secretary may consider in-kind contributions by non-Federal
    participants only to the extent such contributions constitute 50 percent
    or less of the share of the project costs by such participants.
        (e) Use of Competitive Procedures.--Funds obligated for a dual-use
    project may be counted toward meeting an objective under subsection (a)
    only if the funds are obligated for a contract, grant, cooperative
    agreement, or other transaction that was entered into through the use of
    competitive procedures.
        (f) Report.--(1) Not later than March 1 of each of 1998, 1999, and
    2000, the Secretary of Defense shall submit a report to the
    congressional defense committees on the progress made by the Department
    of Defense in meeting the objectives set forth in subsection (b) during
    the preceding fiscal year.
        (2) The report for a fiscal year shall contain, at a minimum, the
    following:
                (A) The aggregate value of all contracts, grants,
            cooperative agreements, or other transactions entered into
            during the fiscal year for which funding is counted toward
            meeting an objective under this section, expressed in
            relationship to the total amount appropriated for the applied
            research programs in the Department of Defense for that fiscal
            year.
                (B) For each military department, the value of all
            contracts, grants, cooperative agreements, or other transactions
            entered into during the fiscal year for which funding is counted
            toward meeting an objective under this section, expressed in
            relationship to the total amount appropriated for the applied
            research program of the military department for that fiscal
            year.
                (C) A summary of the cost-sharing arrangements in dual-use
            projects that were initiated during the fiscal year and are
            counted toward reaching an objective under this section.
                (D) A description of the regulations, directives, or other
            procedures that have been issued by the Secretary of Defense or
            the Secretary of a military department to increase the
            percentage of the total value of the dual-use projects
            undertaken to meet or exceed an objective under this section.

    [[Page 111 STAT. 1657]]

                (E) Any recommended legislation to facilitate achievement of
            objectives under this section.

        (g) Commercial Operations and Support Savings Initiative.--(1) The
    Secretary of Defense shall establish a Commercial Operations and Support
    Savings Initiative (in this subsection referred to as the
    ``Initiative'') to develop commercial products and processes that the
    military departments can incorporate into operational military systems
    to reduce costs of operations and support.
        (2) Of the amounts authorized to be appropriated by section 201,
    $50,000,000 is authorized for the Initiative.
        (3) Projects and participants in the Initiative shall be selected
    through the use of competitive procedures.
        (4) The budget submitted to Congress by the President for fiscal
    year 1999 and each fiscal year thereafter pursuant to section 1105(a) of
    title 31, United States Code, shall set forth separately the funding
    request for the Initiative.
        (h) Repeal of Superseded Authority.--Section 203 of the National
    Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
    Stat. 2451) is repealed.
        (i) Definitions.--In this section:
                (1) The term ``applied research program'' means a program of
            a military department which is funded under the 6.2 Research,
            Development, Test and Evaluation account of that department.
                (2) The term ``dual-use project'' means a project under a
            program of a military department or a defense agency under which
            research or development of a dual-use technology is carried out
            and the costs of which are shared by the Department of Defense
            and non-Government entities.

    SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND
                DEVELOPMENT CENTERS.

        The total of the amounts authorized to be appropriated in section
    201 that are available for Federally Funded Research and Development
    Centers (other than amounts for capital equipment investment) is hereby
    reduced by $42,000,000.

         Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

        (a) Participation of Manufacturers.--Section 2525(c)(2) of title 10,
    United States Code, is amended to read as follows:
        ``(2) In order to promote increased dissemination and use of
    manufacturing technology throughout the national defense technology and
    industrial base, the Secretary shall seek, to the maximum extent
    practicable, the participation of manufacturers of manufacturing
    equipment in the projects under the program.''.
        (b) Five-Year Plan.--Section 2525 of such title is amended by adding
    at the end the following new subsection:
        ``(e) Five-Year Plan.--(1) The Secretary of Defense shall prepare a
    five-year plan for the program which establishes--
                ``(A) the overall manufacturing technology goals,
            milestones, priorities, and investment strategy for the program;
            and

    [[Page 111 STAT. 1658]]

                ``(B) for each of the five fiscal years covered by the plan,
            the objectives of, and funding for the program by, each military
            department and each Defense Agency participating in the program.

        ``(2) The plan shall include an assessment of the effectiveness of
    the program.
        ``(3) The plan shall be updated annually and shall be included in
    the budget justification documents submitted in support of the budget of
    the Department of Defense for a fiscal year (as included in the budget
    of the President submitted to Congress under section 1105 of title
    31).''.
        (c) Deadline for <<NOTE: 10 USC 2525 note.>>  First Plan.--The
    Secretary of Defense shall prepare the first five-year plan required
    under section 2525(e) of such title, as added by subsection (b), within
    60 days after the date of the enactment of this Act.

    SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

        (a) Finding.--Congress recognizes the potential value that the
    Department of Defense Operational Field Assessments program, which is
    managed by the Director of Operational Test and
    Evaluation, provides to the commanders of the Unified Combatant Commands
    with respect to assessment of the effectiveness of near-term operational
    concepts and critical operational issues in quick-response operational
    tests and evaluations.
        (b) Report.--Not later than March 30, 1998, the Secretary of Defense
    shall submit to the congressional defense committees a report on the
    Operational Field Assessments program.
        (c) Content of Report.--The report shall contain the
    following:
                (1) A review of the Operational Field Assessments program
            which describes the goals and objectives of the program,
            assessments by the program conducted as of the date of the
            submission of the report, and the results of those assessments.
                (2) A description of the current management and support
            structure of the program within the Department of Defense,
            including a description of how program responsibilities are
            assigned within the Office of the Secretary of Defense and a
            description of the roles of the Joint Staff, the commanders of
            the Unified Combatant Commands, and the military departments.
                (3) An analysis of and recommendations regarding the
            management structure required within the Office of the Secretary
            of Defense to ensure that the program is responsive to the
            mission needs of the commanders of the Unified Combatant
            Commands.
                (4) The funding plan for the program.
                (5) A description of future plans for the program and
            funding requirements for those plans.
                (6) Recommendations regarding additional statutory authority
            that may be required for the program.

    SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

        (a) Report.--Not later than February 15, 1998, the Secretary of
    Defense shall submit to the congressional defense committees a report on
    the options for the sequence in which the variants of the joint strike
    fighter are to be produced and fielded.
        (b) Content of Report.--The report shall contain the
    following:

    [[Page 111 STAT. 1659]]

                (1) A review of the plan for production under the Joint
            Strike Fighter Program that was used by the Department of
            Defense for developing the funding estimates for the fiscal year
            1999 budget request for the Department of Defense.
                (2) An estimate of the costs, and an analysis of the costs
            and benefits, of producing the joint strike fighter variants in
            a sequence that provides for fielding of the naval variant of
            the aircraft first.
                (3) A comparison of the costs and benefits of the various
            options for the sequence for fielding the variants of the joint
            strike fighter that the Secretary of Defense considers likely to
            be the options from among which a sequence for fielding is
            selected, including a discussion of the effects that selection
            of each such option would have on the costs and rates of
            production of the units of F/A-18E/F and F-22 aircraft that are
            in production when the Joint Strike Fighter Program proceeds
            into production.
                (4) A certification that the Joint Strike Fighter Program
            contains sufficient funding to carry out an alternate engine
            development program that includes flight qualification of an
            alternate engine in a joint strike fighter airframe.

        (c) Limitation on Use of Funds Pending Submission of Report.--Not
    more than 90 percent of the total amount authorized to be appropriated
    under this Act for the Joint Strike Fighter Program may be obligated
    until the date that is 30 days after the date on which the congressional
    defense committees receive the report required under this section.
        (d) Fiscal Year 1998 Budget Defined.--In this section, the term
    ``fiscal year 1999 budget request for the Department of Defense'' means
    the budget estimates for the Department of Defense for fiscal year 1999
    that were submitted to Congress by the Secretary of Defense in
    connection with the submission of the budget for fiscal year 1998 to
    Congress under section 1105 of title 31, United States Code.

    SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

        Of the funds authorized to be appropriated under section 201(4),
    $37,500,000 shall be available for the kinetic energy tactical anti-
    satellite technology program.

    SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

        (a) Establishment of Micro-Satellite Technology Development
    Program.--The Secretary of Defense shall restructure the Clementine 2
    micro-satellite development program into a micro-satellite technology
    development program that supports a range of space mission areas.
        (b) Report.--Not later than February 15, 1998, the Secretary of
    Defense shall submit to the congressional defense committees a report
    describing the structure and objectives of the micro-satellite
    technology development program established under subsection (a) and how
    the program can benefit existing or future space systems or
    architectures.

    SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE
                PROGRAM.

        (a) Limitation on Total Cost of Advanced Concept Technology
    Demonstration.--The total amount obligated or expended

    [[Page 111 STAT. 1660]]

    for advanced concept technology demonstration under the High Altitude
    Endurance Unmanned Vehicle Program for fiscal year 1998 through fiscal
    year 2003 may not exceed $476,826,000.
        (b) Limitation on Procurement.--The Secretary of Defense may not
    procure any high altitude endurance unmanned vehicles, other than the
    currently planned vehicles, until the completion of the testing
    identified in phase II of the test and demonstration plan for the
    advanced concept technology demonstration for the vehicles.
        (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned
    Vehicle Program may not proceed beyond advanced concept technology
    demonstration until the Secretary of Defense--
                (1) provides to Congress a firm unit cost (referred to in
            this section as the ``fly away cost'') for each of the currently
            planned vehicles; and
                (2) certifies to Congress the military suitability and the
            worth of each such vehicle.

        (d) GAO Review.--(1) The Comptroller General shall review the High
    Altitude Endurance Unmanned Vehicle Program for purposes of determining
    whether the average fly away cost for each vehicle is within the cost
    goal under the program of $10,000,000.
        (2) The Secretary of Defense and the prime contractors under the
    High Altitude Endurance Unmanned Vehicle Program shall provide the
    Comptroller General with such information on the program as the
    Comptroller considers necessary to make the determination under
    paragraph (1).
        (e) Currently Planned Vehicles.--In this section, the term
    ``currently planned vehicles'' means the four Dark Star air vehicles and
    the five Global Hawk air vehicles that have been approved for
    procurement by the Secretary of Defense as of the date of the enactment
    of this Act.

    SEC. 217. F-22 AIRCRAFT PROGRAM.

        (a) Limitation on Total Cost of Engineering and Manufacturing
    Development.--The total amount obligated or expended for engineering and
    manufacturing development under the F-22 aircraft program may not exceed
    $18,688,000,000.
        (b) Limitation on Total Cost of Production.--The total amount
    obligated or expended for the F-22 production program may not exceed
    $43,400,000,000.
        (c) Adjustment of Limitation Amounts.--The Secretary of the Air
    Force shall adjust the amounts of the limitations set forth in
    subsections (a) and (b) by the following amounts:
                (1) The amounts of increases or decreases in costs
            attributable to economic inflation after September 30, 1997.
                (2) The amounts of increases or decreases in costs
            attributable to compliance with changes in Federal, State, or
            local laws enacted after September 30, 1997.

        (d)  <<NOTE: Reports.>> Annual GAO Review.--(1) Not later than March
    15 of each year, the Comptroller General shall review the F-22 aircraft
    program and submit to Congress a report on the results of the review.
    The Comptroller General shall also submit to Congress for each report a
    certification regarding whether the Comptroller General has had access
    to sufficient information to make informed judgments on the matters
    covered by the report.

        (2) The report submitted on the program each year shall include the
    following:

    [[Page 111 STAT. 1661]]

                (A) The extent to which engineering and manufacturing
            development under the program is meeting the goals established
            for engineering and manufacturing development under the program,
            including the performance, cost, and schedule goals.
                (B) The status of modifications expected to have a
            significant effect on cost or performance of F-22 aircraft.
                (C) The plan for engineering and manufacturing development
            (leading to production) under the program for the fiscal year
            that begins in the following year.
                (D) A conclusion regarding whether the plan referred to in
            subparagraph (C) is consistent with the limitation in subsection
            (a).
                (E) A conclusion regarding whether engineering and
            manufacturing development (leading to production) under the
            program is likely to be completed at a total cost not in excess
            of the amount specified in subsection (a).

        (3) The Comptroller General shall submit the first report under this
    subsection not later than March 15, 1998. No report is required under
    this subsection after engineering and manufacturing development under
    the program has been completed.
        (e) Requirement To Support Annual GAO Review.--The Secretary of
    Defense and the prime contractors under the F-22 aircraft program shall
    provide the Comptroller General with such information on the program as
    the Comptroller General considers necessary to carry out the
    responsibilities under subsection (d).
        (f) Limitation on Obligation of Funds.--Of the total amount
    authorized to be appropriated for the F-22 aircraft program for a fiscal
    year, not more than 90 percent of the amount may be obligated until the
    Comptroller General submits to Congress--
                (1) the report required to be submitted in that fiscal year
            under subsection (d); and
                (2) a certification regarding whether the Comptroller
            General has had access to sufficient information to make
            informed judgments on the matters covered by the report.

                 Subtitle C--Ballistic Missile Defense Programs

    SEC. 231. NATIONAL <<NOTE: 10 USC 2431 note.>>  MISSILE DEFENSE PROGRAM.

        (a) Program Structure.--To preserve the option of achieving an
    initial operational capability in fiscal year 2003, the Secretary of
    Defense shall ensure that the National Missile Defense Program is
    structured and programmed for funding so as to support a test, in fiscal
    year 1999, of an integrated national missile defense system that is
    representative of the national missile defense system architecture that
    could achieve initial operational capability in fiscal year 2003.
        (b) Elements of NMD System.--The national missile defense system
    architecture specified in subsection (a) shall consist of the following
    elements:
                (1) An interceptor system that optimizes defensive coverage
            of the continental United States, Alaska, and Hawaii against
            limited ballistic missile attack (whether accidental,
            unauthorized, or deliberate).
                (2) Ground-based radars.

    [[Page 111 STAT. 1662]]

                (3) Space-based sensors.
                (4) Battle management, command, control, and communications
            (BM/C<SUP>3</SUP>).

        (c) Plan for NMD System Development and Deployment.--Not later than
    February 15, 1998, the Secretary of Defense shall submit to the
    congressional defense committees a plan for the development and
    deployment of a national missile defense system that could achieve
    initial operational capability in fiscal year 2003. The plan shall
    include the following matters:
                (1) A detailed description of the system architecture
            selected for development.
                (2) A discussion of the justification for the selection of
            that particular architecture.
                (3) The Secretary's estimate of the amounts of the
            appropriations that would be necessary for research,
            development, test, evaluation, and for procurement for each of
            fiscal years 1999 through 2003 in order to achieve an initial
            operational capability of the system architecture in fiscal year
            2003.
                (4) For each activity necessary for the development and
            deployment of the national missile defense system architecture
            selected by the Secretary that would at some point conflict with
            the terms of the ABM Treaty, if any--
                        (A) a description of the activity;
                        (B) a description of the point at which the activity
                    would conflict with the terms of the ABM Treaty;
                        (C) the legal analysis justifying the Secretary's
                    determination regarding the point at which the activity
                    would conflict with the terms of the ABM Treaty; and
                        (D) an estimate of the time at which such point
                    would be reached in order to achieve a test of an
                    integrated missile defense system in fiscal year 1999
                    and initial operational capability of such a system in
                    fiscal year 2003.

        (d) Funding for Fiscal Year 1998.--Of the funds authorized to be
    appropriated under section 201(4), $978,091,000 shall be available for
    the National Missile Defense Program.
        (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty''
    means the Treaty Between the United States of America and the Union of
    Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile
    Systems, signed at Moscow on May 26, 1972, and includes the Protocol to
    that treaty, signed at Moscow on July 3, 1974.

    SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC
                MISSILE DEFENSE PROGRAMS.

        (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of
    title 10, United States Code, is amended by inserting after section 222
    the following new section:

    ``Sec. 224. Ballistic missile defense programs: display of amounts for
                            procurement

        ``(a) Requirement.--Any amount in the budget submitted to Congress
    under section 1105 of title 31 for any fiscal year for procurement for a
    Department of Defense missile defense program described in subsection
    (b) shall be set forth under the account of the Department of Defense
    for Defense-wide procurement and, within that account, under the
    subaccount (or other budget activity level) for the Ballistic Missile
    Defense Organization.

    [[Page 111 STAT. 1663]]

        ``(b) Covered Programs.--Subsection (a) applies to the
    following missile defense programs of the Department of Defense:
                ``(1) The National Missile Defense Program.
                ``(2) Any system that is part of the core theater missile
            defense program.
                ``(3) Any other ballistic missile defense program that
            enters production after the date of the enactment of this
            section and for which research, development, test, and
            evaluation was carried out by the Ballistic Missile Defense
            Organization.

        ``(c) Core Theater Ballistic Missile Defense Program.--For purposes
    of this section, the core theater missile defense program consists of
    the systems specified in section 234 of the Ballistic Missile Defense
    Act of 1995 (10 U.S.C. 2431 note).''.
        (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:

    ``224. Ballistic missile defense programs: display of amounts for
               procurement.''.

        (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense shall
    transfer to appropriations available to the Ballistic Missile Defense
    Organization for procurement for fiscal year 1998 any amounts that are
    appropriated for procurement for that fiscal year for any of the Armed
    Forces by reason of the transference of certain programs to accounts of
    the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget
    Decision 224C3, signed by the Under Secretary of Defense (Comptroller)
    on December 23, 1996.
        (2) Any transfer pursuant to paragraph (1) shall not be counted for
    purposes of section 1001.

    SEC. 233. COOPERATIVE <<NOTE: 10 USC 221 note.>>  BALLISTIC MISSILE
                DEFENSE PROGRAM.

        (a) Requirement for New Program Element.--The Secretary of Defense
    shall establish a program element for the Ballistic Missile Defense
    Organization, to be referred to as the ``Cooperative Ballistic Missile
    Defense Program'', to support technical and analytical cooperative
    efforts between the United States and other nations that contribute to
    United States ballistic missile defense capabilities. Except as provided
    in subsection (b), all international cooperative ballistic missile
    defense programs of the Department of Defense shall be budgeted and
    administered through that program element.
        (b) Authority for Exceptions.--The Secretary of Defense may exclude
    from the program element established pursuant to subsection (a) any
    international cooperative ballistic missile defense program of the
    Department of Defense that after the date of the enactment of this Act
    is designated by the Secretary of Defense (pursuant to applicable
    Department of Defense acquisition regulations and policy) to be managed
    as a separate acquisition program.
        (c) Relationship to Other Program Elements.--The program element
    established pursuant to subsection (a) is in addition to the program
    elements for activities of the Ballistic Missile Defense Organization
    required under section 251 of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 233; 10 U.S.C. 221
    note).

    [[Page 111 STAT. 1664]]

    SEC. 234. ANNUAL <<NOTE: 50 USC 2367.>>  REPORT ON THREAT POSED TO THE
                UNITED STATES BY WEAPONS OF MASS DESTRUCTION, BALLISTIC
                MISSILES, AND CRUISE MISSILES.

        (a) Annual Report.--The Secretary of Defense shall submit to
    Congress by January 30 of each year a report on the threats posed to the
    United States and allies of the United States--
                (1) by weapons of mass destruction, ballistic missiles, and
            cruise missiles; and
                (2) by the proliferation of weapons of mass destruction,
            ballistic missiles, and cruise missiles.

        (b) Consultation.--Each report submitted under subsection (a) shall
    be prepared in consultation with the Director of Central Intelligence.
        (c) Matters To Be Included.--Each report submitted under subsection
    (a) shall include the following:
                (1) Identification of each foreign country and non-State
            organization that possesses weapons of mass destruction,
            ballistic missiles, or cruise missiles, and a description of
            such weapons and missiles with respect to each such foreign
            country and non-State organization.
                (2) A description of the means by which any foreign country
            and non-State organization that has achieved capability with
            respect to weapons of mass destruction, ballistic missiles, or
            cruise missiles has achieved that capability, including a
            description of the international network of foreign countries
            and private entities that provide assistance to foreign
            countries and non-State organizations in achieving that
            capability.
                (3) An examination of the doctrines that guide the use of
            weapons of mass destruction in each foreign country that
            possesses such weapons.
                (4) An examination of the existence and implementation of
            the control mechanisms that exist with respect to nuclear
            weapons in each foreign country that possesses such weapons.
                (5) Identification of each foreign country and non-State
            organization that seeks to acquire or develop (indigenously or
            with foreign assistance) weapons of mass destruction, ballistic
            missiles, or cruise missiles, and a description of such weapons
            and missiles with respect to each such foreign country and non-
            State organization.
                (6) An assessment of various possible timelines for the
            achievement by foreign countries and non-State organizations of
            capability with respect to weapons of mass destruction,
            ballistic missiles, and cruise missiles, taking into account the
            probability of whether the Russian Federation and the People's
            Republic of China will comply with the Missile Technology
            Control Regime, the potential availability of assistance from
            foreign technical specialists, and the potential for independent
            sales by foreign private entities without authorization from
            their national governments.
                (7) For each foreign country or non-State organization that
            has not achieved the capability to target the United States or
            its territories with weapons of mass destruction, ballistic
            missiles, or cruise missiles as of the date of the enactment of
            this Act, an estimate of how far in advance the United States is
            likely to be warned before such foreign country or non-State
            organization achieves that capability.

    [[Page 111 STAT. 1665]]

                (8) For each foreign country or non-State organization that
            has not achieved the capability to target members of the United
            States Armed Forces deployed abroad with weapons of mass
            destruction, ballistic missiles, or cruise missiles as of the
            date of the enactment of this Act, an estimate of how far in
            advance the United States is likely to be warned before such
            foreign country or non-State organization achieves that
            capability.

        (d) Classification.--Each report under subsection (a) shall be
    submitted in classified and unclassified form.

    SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

        (a) In General.--Subchapter II of chapter 8 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 203. Director of Ballistic Missile Defense Organization

        ``If an officer of the armed forces on active duty is appointed to
    the position of Director of the Ballistic Missile Defense Organization,
    the position shall be treated as having been designated by the President
    as a position of importance and responsibility for purposes of section
    601 of this title and shall carry the grade of lieutenant general or
    general or, in the case of an officer of the Navy, vice admiral or
    admiral.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``203. Director of Ballistic Missile Defense Organization.''.

    SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE
                DEFENSE PROGRAMS.

        Section 234(a) of the Ballistic Missile Defense Act of 1995
    (subtitle C of title II of Public Law 104-106; 110 Stat. 229; 10 U.S.C.
    2431 note) is amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``, to be carried out so as to achieve the specified
            capabilities'';
                (2) in paragraph (1), by striking out ``, with a first unit
            equipped (FUE) during fiscal year 1998'';
                (3) in paragraph (2), by striking out ``Navy Lower Tier
            (Area) system'' and all that follows through ``fiscal year
            1999'' and inserting in lieu thereof ``Navy Area Defense
            system'';
                (4) in paragraph (3), by striking out ``, with a'' and all
            that follows through ``fiscal year 2000''; and
                (5) in paragraph (4), by striking out ``Navy Upper Tier''
            and all that follows through ``fiscal year 2001'' and inserting
            in lieu thereof ``Navy Theater Wide system''.

                            Subtitle D--Other Matters

    SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM
                ORGANIZATIONS.

        (a) National Ocean Research Leadership Council.--Section 7902 of
    title 10, United States Code, is amended--
                (1) in subsection (b)--
                        (A) by striking out paragraphs (11), (14), (15),
                    (16), and (17); and
                        (B) by redesignating paragraphs (12) and (13) as
                    paragraphs (11) and (12), respectively;

    [[Page 111 STAT. 1666]]

                (2) by striking out subsection (d); and
                (3) by redesignating subsections (e), (f), (g), (h), and (i)
            as subsections (d), (e), (f), (g), and (h), respectively.

        (b) Ocean Research Advisory Panel.--(1) The text of section 7903 of
    such title is amended to read as follows:
        ``(a) Establishment.--The Council shall establish an Ocean Research
    Advisory Panel consisting of not less than 10 and not more than 18
    members appointed by the chairman, including the following:
                ``(1) One member who will represent the National Academy of
            Sciences.
                ``(2) One member who will represent the National Academy of
            Engineering.
                ``(3) One member who will represent the Institute of
            Medicine.
                ``(4) Members selected from among individuals who will
            represent the views of ocean industries, State governments,
            academia, and such other views as the chairman considers
            appropriate.
                ``(5) Members selected from among individuals eminent in the
            fields of marine science or marine policy, or related fields.

        ``(b) Responsibilities.--The Council shall assign the following
    responsibilities to the Advisory Panel:
                ``(1) To advise the Council on policies and procedures to
            implement the National Oceanographic Partnership Program.
                ``(2) To advise the Council on selection of partnership
            projects and allocation of funds for partnership projects for
            implementation under the program.
                ``(3) To advise the Council on matters relating to national
            oceanographic data requirements.
                ``(4) Any additional responsibilities that the Council
            considers appropriate.

        ``(c) Funding.--The Secretary of the Navy annually shall make funds
    available to support the activities of the Advisory Panel.''.
        (2) Section 282(c) of the National Defense Authorization Act for
    Fiscal Year 1997 (Public Law 104-201; 110 <<NOTE: 10 USC 7903
    note.>> Stat. 2473) is amended by striking out ``January 1, 1997'' and
    inserting in lieu thereof ``January 1, 1998''.

        (c) Conforming Amendments.--Section 282 of the National Defense
    Authorization Act for Fiscal Year 1997 is amended--
                (1) by striking out <<NOTE: 10 USC 7902 note.>>  subsection
            (b); and
                (2) by redesignating <<NOTE: 10 USC 7903 note, 7902
            note.>> subsections (c), (d), (e), and (f) as subsections (b),
            (c), (d), and (e), respectively.

        (d) Effective Date.--The <<NOTE: 10 USC 7902 note.>>  amendments
    made by subsections (a) and (b) shall be effective as of September 23,
    1996, as if included in section 282 of Public Law 104-201.

    SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE
                INSTALLATIONS.

        (a) In General.--Chapter 949 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 9782. Maintenance and repair of real property

        ``(a) Allocation of Funds.--The Secretary of the Air Force shall
    allocate funds authorized to be appropriated by a provision described in
    subsection (c) and a provision described in subsection

    [[Page 111 STAT. 1667]]

    (d) for maintenance and repair of real property at military
    installations of the Department of the Air Force without regard to
    whether the installation is supported with funds authorized by a
    provision described in subsection (c) or (d).
        ``(b) Mixing of Funds Prohibited on Individual Projects.--The
    Secretary of the Air Force may not combine funds authorized to be
    appropriated by a provision described in subsection (c) and funds
    authorized to be appropriated by a provision described in subsection (d)
    for an individual project for maintenance and repair of real property at
    a military installation of the Department of the Air Force.
        ``(c) Research, Development, Test, and Evaluation Funds.--The
    provision described in this subsection is a provision of a national
    defense authorization Act that authorizes funds to be appropriated for a
    fiscal year to the Air Force for research, development, test, and
    evaluation.
        ``(d) Operation and Maintenance Funds.--The provision described in
    this subsection is a provision of a national defense authorization Act
    that authorizes funds to be appropriated for a fiscal year to the Air
    Force for operation and maintenance.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``9782. Maintenance and repair of real property.''.

    SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM
                TO STIMULATE COMPETITIVE RESEARCH.

        Section 257 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; U.S.C. 2358 note) <<NOTE: 10 USC 2358
    note.>> is amended by adding at the end the following new subsection:

        ``(f) State Defined.--In this section, the term `State' means a
    State of the United States, the District of Columbia, the Commonwealth
    of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the
    Commonwealth of the Northern Mariana Islands.''.

    SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION
                DURING MILITARY SERVICE.

        (a) Nuclear Test Personnel Program.--Of the amount provided in
    section 201(4), $300,000 shall be available for testing described in
    subsection (b) in support of the Nuclear Test Personnel Program
    conducted by the Defense Special Weapons Agency.
        (b) Covered Testing.--Subsection <<NOTE: Applicability.>>  (a)
    applies to the third phase of bioassay testing of individuals who are
    radiation-exposed veterans (as defined in section 1112(c)(3)(A) of title
    38, United States Code) who participated in radiation-risk activities
    (as defined in section 1112(c)(3)(B) of such title).

    SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

        It is the sense of Congress that the Department of Defense should--
                (1) evaluate technology transfer and acquisition initiatives
            within the Army Comanche program that have the potential to
            increase the efficiency or reduce the risk of the Comanche
            program; and
                (2) include adequate funding for those initiatives that the
            Department deems to be meritorious in the future-years defense

    [[Page 111 STAT. 1668]]

            program (as submitted to Congress under section 221 of title 10,
            United States Code).

                      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. Fisher House Trust Funds.
    Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 306. Refurbishment of M1-A1 tanks.
    Sec. 307. Operation of prepositioned fleet, National Training Center,
               Fort Irwin, California.
    Sec. 308. Refurbishment and installation of air search radar.
    Sec. 309. Contracted training flight services.
    Sec. 310. Procurement technical assistance programs.
    Sec. 311. Operation of Fort Chaffee, Arkansas.

                      Subtitle B--Military Readiness Issues

    Sec. 321. Monthly reports on allocation of funds within operation and
               maintenance budget subactivities.
    Sec. 322. Expansion of scope of quarterly readiness reports.
    Sec. 323. Semiannual reports on transfers from high-priority readiness
               appropriations.
    Sec. 324. Annual report on aircraft inventory.
    Sec. 325. Administrative actions adversely affecting military training
               or other
               readiness activities.
    Sec. 326. Common measurement of operations tempo and personnel tempo.
    Sec. 327. Inclusion of Air Force depot maintenance as operation and
               maintenance budget line items.
    Sec. 328. Prohibition of implementation of tiered readiness system.
    Sec. 329. Report on military readiness requirements of the Armed Forces.
    Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
    Sec. 331. Report on military exercises conducted under certain training
               exercises programs.
    Sec. 332. Report on overseas deployments.

                      Subtitle C--Environmental Provisions

    Sec. 341. Revision of membership terms for Strategic Environmental
               Research and Development Program Scientific Advisory Board.
    Sec. 342. Amendments to authority to enter into agreements with other
               agencies in support of environmental technology
               certification.
    Sec. 343. Modifications of authority to store and dispose of nondefense
               toxic and hazardous materials.
    Sec. 344. Annual report on payments and activities in response to fines
               and
               penalties assessed under environmental laws.
    Sec. 345. Annual report on environmental activities of the Department of
               Defense overseas.
    Sec. 346. Review of existing environmental consequences of the presence
               of the Armed Forces in Bermuda.
    Sec. 347. Sense of Congress on deployment of United States Armed Forces
               abroad for environmental preservation activities.
    Sec. 348. Recovery and sharing of costs of environmental restoration at
               Department of Defense sites.
    Sec. 349. Partnerships for investment in innovative environmental
               technologies.
    Sec. 350. Procurement of recycled copier paper.
    Sec. 351. Pilot program for the sale of air pollution emission reduction
               incentives.

                       Subtitle D--Depot-Level Activities

    Sec. 355. Definition of depot-level maintenance and repair.
    Sec. 356. Core logistics capabilities of Department of Defense.
    Sec. 357. Increase in percentage of depot-level maintenance and repair
               that may be contracted for performance by non-Government
               personnel.
    Sec. 358. Annual report on depot-level maintenance and repair.
    Sec. 359. Requirement for use of competitive procedures in contracting
               for performance of depot-level maintenance and repair
               workloads formerly
               performed at closed or realigned military installations.

    [[Page 111 STAT. 1669]]

    Sec. 360. Clarification of prohibition on management of depot employees
               by
               constraints on personnel levels.
    Sec. 361. Centers of Industrial and Technical Excellence.
    Sec. 362. Extension of authority for aviation depots and naval shipyards
               to engage in defense-related production and services.
    Sec. 363. Repeal of a conditional repeal of certain depot-level
               maintenance and
               repair laws and a related reporting requirement.
    Sec. 364. Personnel reductions, Army depots participating in Army
               Workload and Performance System.
    Sec. 365. Report on allocation of core logistics activities among
               Department of
               Defense facilities and private sector facilities.
    Sec. 366. Review of use of temporary duty assignments for ship repair
               and maintenance.
    Sec. 367. Sense of Congress regarding realignment of performance of
               ground
               communication-electronic workload.

       Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

    Sec. 371. Reorganization of laws regarding commissaries and exchanges
               and other morale, welfare, and recreation activities.
    Sec. 372. Merchandise and pricing requirements for commissary stores.
    Sec. 373. Limitation on noncompetitive procurement of brand-name
               commercial items for resale in commissary stores.
    Sec. 374. Treatment of revenues derived from commissary store
               activities.
    Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation
               Center, Europe.
    Sec. 376. Plan for use of public and private partnerships to benefit
               morale, welfare, and recreation activities.

                            Subtitle F--Other Matters

    Sec. 381. Assistance to local educational agencies that benefit
               dependents of members of the Armed Forces and Department of
               Defense civilian employees.
    Sec. 382. Center for Excellence in Disaster Management and Humanitarian
               Assistance.
    Sec. 383. Applicability of Federal printing requirements to Defense
               Automated Printing Service.
    Sec. 384. Study and notification requirements for conversion of
               commercial and
               industrial type functions to contractor performance.
    Sec. 385. Collection and retention of cost information data on converted
               services and functions.
    Sec. 386. Financial assistance to support additional duties assigned to
               Army
               National Guard.
    Sec. 387. Competitive procurement of printing and duplication services.
    Sec. 388. Continuation and expansion of demonstration program to
               identify overpayments made to vendors.
    Sec. 389. Development of standard forms regarding performance work
               statement and request for proposal for conversion of certain
               operational functions of military installations.
    Sec. 390. Base operations support for military installations on Guam.
    Sec. 391. Warranty claims recovery pilot program.
    Sec. 392. Program to investigate fraud, waste, and abuse within
               Department of
               Defense.
    Sec. 393. Multitechnology automated reader card demonstration program.
    Sec. 394. Reduction in overhead costs of Inventory Control Points.
    Sec. 395. Inventory management.

                   Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    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, $17,174,589,000.
                (2) For the Navy, $21,947,656,000.
                (3) For the Marine Corps, $2,424,645,000.

    [[Page 111 STAT. 1670]]

                (4) For the Air Force, $19,172,985,000.
                (5) For Defense-wide activities, $10,242,607,000.
                (6) For the Army Reserve, $1,207,981,000.
                (7) For the Naval Reserve, $846,711,000.
                (8) For the Marine Corps Reserve, $116,366,000.
                (9) For the Air Force Reserve, $1,631,200,000.
                (10) For the Army National Guard, $2,311,432,000.
                (11) For the Air National Guard, $2,999,782,000.
                (12) For the Defense Inspector General, $136,580,000.
                (13) For the United States Court of Appeals for the Armed
            Forces, $6,952,000.
                (14) For Environmental Restoration, Army, $375,337,000.
                (15) For Environmental Restoration, Navy, $275,500,000.
                (16) For Environmental Restoration, Air Force, $376,900,000.
                (17) For Environmental Restoration, Defense-wide,
            $26,900,000.
                (18) For Environmental Restoration, Formerly Used Defense
            Sites, $202,300,000.
                (19) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $47,130,000.
                (20) For Drug Interdiction and Counter-drug Activities,
            Defense-wide, $666,882,000.
                (21) For the Kaho'olawe Island Conveyance, Remediation, and
            Environmental Restoration Trust Fund, $10,000,000.
                (22) For Medical Programs, Defense, $9,957,782,000.
                (23) For Cooperative Threat Reduction programs,
            $382,200,000.
                (24) For Overseas Contingency Operations Transfer Fund,
            $1,253,900,000.

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 1998
    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, $971,952,000.
                (2) For the National Defense Sealift Fund, $1,059,948,000.

    SEC. 303. ARMED FORCES RETIREMENT HOME.

        There is hereby authorized to be appropriated for fiscal year 1998
    from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000
    for the operation of the Armed Forces Retirement Home, including the
    United States Soldiers' and Airmen's Home and the Naval Home.

    SEC. 304. FISHER HOUSE TRUST FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 1998,
    out of funds in Fisher House Trust Funds not otherwise appropriated, for
    the operation of Fisher houses described in section 2221(d) of title 10,
    United States Code, as follows:
                (1) From the Fisher House Trust Fund, Department of the
            Army, $250,000 for Fisher houses that are located in proximity
            to medical treatment facilities of the Army.
                (2) From the Fisher House Trust Fund, Department of the
            Navy, $150,000 for Fisher houses that are located in proximity
            to medical treatment facilities of the Navy.

    [[Page 111 STAT. 1671]]

    SEC. 305. 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 1998 in amounts as follows:
                (1) For the Army, $50,000,000.
                (2) For the Navy, $50,000,000.
                (3) For the Air Force, $50,000,000.

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

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

    SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

        Of the amount authorized to be appropriated pursuant to section
    301(1) for operation and maintenance for the Army, $35,000,000 shall be
    available only for refurbishment of M1-A1 tanks under the AIM-XXI
    program if the Secretary of Defense determines that the cost
    effectiveness of the pilot AIM-XXI program is validated through user
    trials conducted at the National Training Center, Fort Irwin,
    California.

    SEC. 307. 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. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

        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 refurbishment and installation of the AN/SPS-48E air
    search radar for the Ship Self Defense System at the Integrated Ship
    Defense Systems Engineering Center, Naval Surface Warfare Center,
    Wallops Islands, Virginia.

    SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

        Of the amount authorized to be appropriated pursuant to section
    301(4) for operation and maintenance for the Air Force, $12,000,000 may
    be used for contracted training flight services.

    SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

        (a) Funding.--Of the amount authorized to be appropriated under
    section 301(5), $12,000,000 shall be available for carrying out the
    provisions of chapter 142 of title 10, United States Code.
        (b) Specific Programs.--Of the amounts made available pursuant to
    subsection (a), $600,000 shall be available for fiscal year

    [[Page 111 STAT. 1672]]

    1998 for the purpose of carrying out programs sponsored by eligible
    entities referred to in subparagraph (D) of section 2411(1) of title 10,
    United States Code, that provide procurement technical assistance in
    distressed areas referred to in subparagraph (B) of section 2411(2) of
    such title. If there is an insufficient number of satisfactory proposals
    for cooperative agreements in such distressed areas to allow effective
    use of the funds made available in accordance with this subsection in
    such areas, the funds shall be allocated among the Defense Contract
    Administration Services regions in accordance with section 2415 of such
    title.

    SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

        Of the amount authorized to be appropriated pursuant to section
    301(10) for operation and maintenance for the Army National Guard,
    $6,854,000 may be available for the operation of Fort Chaffee, Arkansas.

                      Subtitle B--Military Readiness Issues

    SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND
                MAINTENANCE BUDGET SUBACTIVITIES.

        (a) In General.--(1) Chapter 9 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 228. Monthly reports on allocation of funds within operation and
                            maintenance budget subactivities

        ``(a) Monthly Report.--The Secretary of Defense shall submit to
    Congress a monthly report on the allocation of appropriations to O&M
    budget activities and to the subactivities of those budget activities.
    Each such report shall be submitted not later than 60 days after the end
    of the month to which the report pertains.
        ``(b) Matters To Be Included.--Each such report shall set forth the
    following for each subactivity of the O&M budget activities:
                ``(1) The amount of budget authority appropriated for that
            subactivity in the most recent regular Department of Defense
            Appropriations Act.
                ``(2) The amount of budget authority actually made available
            for that subactivity, taking into consideration supplemental
            appropriations, rescissions, and other adjustments required by
            law or made pursuant to law.
                ``(3) The amount programmed to be expended from such
            subactivity.

        ``(c) Identification of Certain Fluctuations.--(1) If, in the report
    under this section for a month of a fiscal year after the first month of
    that fiscal year, an amount shown under subsection (b) for a subactivity
    is different by more than $15,000,000 from the corresponding amount for
    that subactivity in the report for the first month of that fiscal year,
    the Secretary shall include in the report notice of that difference.
        ``(2) If, in the report under this section for a month of a fiscal
    year after a month for which the report under this section includes a
    notice under paragraph (1), an amount shown under subsection (b) for a
    subactivity is different by more than $15,000,000 from the corresponding
    amount for that subactivity in the most recent report that includes a
    notice under paragraph (1) or this

    [[Page 111 STAT. 1673]]

    paragraph, the Secretary shall include in the report notice of that
    difference.
        ``(d) Report on Fluctuations.--If a report under this section
    includes a notice under subsection (c), the Secretary shall include in
    the report with each such notice the following:
                ``(1) The reasons for the reallocations of funds resulting
            in the inclusion of that notice in the report.
                ``(2) Each budget subactivity involved in those
            reallocations.
                ``(3) The effect of those reallocations on the operation and
            maintenance activities funded through the subactivity with
            respect to which the notice is included in the report.

        ``(e) O&M Budget Activity Defined.--For purposes of this section,
    the term `O&M budget activity' means a budget activity within an
    operation and maintenance appropriation of the Department of Defense for
    a fiscal year.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``228. Monthly reports on allocation of funds within operation and
               maintenance budget subactivities.''.

        (b) Effective Date.--The <<NOTE: 10 USC 228 note.>>  first report
    under section 228 of title 10, United States Code, as added by
    subsection (a), shall be for the month of December 1997.

    SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

        (a) Expanded Reports Required.--(1) Section 482 of title 10, United
    States Code, is amended to read as follows:

    ``Sec. 482. Quarterly reports: personnel and unit readiness

        ``(a) Quarterly Reports Required.--Not later than 30 days after the
    end of each calendar-year quarter, the Secretary of Defense shall submit
    to Congress a report regarding military readiness. The report for a
    quarter shall contain the information required by subsections (b), (d),
    and (e).
        ``(b) Readiness Problems and Remedial Actions.--Each report shall
    specifically describe--
                ``(1) each readiness problem and deficiency identified using
            the assessments considered under subsection (c);
                ``(2) planned remedial actions; and
                ``(3) the key indicators and other relevant information
            related to each identified problem and deficiency.

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

    [[Page 111 STAT. 1674]]

        ``(d) Comprehensive Readiness Indicators for Active Components.--
    Each report shall also include information regarding each of the active
    components of the armed forces (and an evaluation of such information)
    with respect to each of the following readiness indicators:
                ``(1) Personnel strength.--
                        ``(A) Personnel status, including the extent to
                    which members of the armed forces are serving in
                    positions outside of their military occupational
                    specialty, serving in grades other than the grades for
                    which they are qualified, or both.
                        ``(B) Historical data and projected trends in
                    personnel strength and status.
                ``(2) Personnel turbulence.--
                        ``(A) Recruit quality.
                        ``(B) Borrowed manpower.
                        ``(C) Personnel stability.
                ``(3) Other personnel matters.--
                        ``(A) Personnel morale.
                        ``(B) Recruiting status.
                ``(4) Training.--
                        ``(A) Training unit readiness and proficiency.
                        ``(B) Operations tempo.
                        ``(C) Training funding.
                        ``(D) Training commitments and deployments.
                ``(5) Logistics--equipment fill.--
                        ``(A) Deployed equipment.
                        ``(B) Equipment availability.
                        ``(C) Equipment that is not mission capable.
                        ``(D) Age of equipment.
                        ``(E) Condition of nonpacing items.
                ``(6) Logistics--equipment maintenance.--
                        ``(A) Maintenance backlog.
                ``(7) Logistics--supply.--
                        ``(A) Availability of ordnance and spares.
                        ``(B) Status of prepositioned equipment.

        ``(e) Unit Readiness Indicators.--Each report shall also include
    information regarding the readiness of each active component unit of the
    armed forces at the battalion, squadron, or an equivalent level (or a
    higher level) that received a readiness rating of C-3 (or below) for any
    month of the calendar-year quarter covered by the report. With respect
    to each such unit, the report shall separately provide the following
    information:
                ``(1) The unit designation and level of organization.
                ``(2) The overall readiness rating for the unit for the
            quarter and each month of the quarter.
                ``(3) The resource area or areas (personnel, equipment and
            supplies on hand, equipment condition, or training) that
            adversely affected the unit's readiness rating for the quarter.
                ``(4) The reasons why the unit received a readiness rating
            of C-3 (or below).

        ``(f) Classification of Reports.--A report under this section shall
    be submitted in unclassified form. To the extent the Secretary of
    Defense determines necessary, the report may also be submitted in
    classified form.''.

    [[Page 111 STAT. 1675]]

        (2) The item relating to section 482 in the table of sections at the
    beginning of chapter 23 of such title is amended to read as follows:

    ``482. Quarterly reports: personnel and unit readiness.''.

        (b) Implementation <<NOTE: 10 USC 482 note.>>  Plan To Examine
    Readiness Indicators.--Not later than January 15, 1998, the Secretary of
    Defense shall submit to the congressional defense committees a plan--
                (1) specifying the manner in which the Secretary will
            implement the additional reporting requirement of subsection (d)
            of section 482 of title 10, United States Code, as added by this
            section; and
                (2) specifying the criteria proposed to be used to evaluate
            the readiness indicators identified in such subsection (d).

        (c) Limitation Pending Receipt of Implementation Plan.--Of the
    amount available for fiscal year 1998 for operation and support
    activities of the Office of the Secretary of Defense, 10 percent may not
    be obligated until after the date on which the implementation plan
    required by subsection (b) is submitted.
        (d) Transition <<NOTE: 10 USC 482 note.>>  To Complete Report.--
    Until the report under section 482 of title 10, United States Code, as
    amended by subsection (a), for the third quarter of 1998 is submitted,
    the Secretary of Defense may omit the information required by subsection
    (d) of such section if the Secretary determines that it is impracticable
    to comply with such subsection with regard to the preceding reports.

    SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-
                PRIORITY READINESS APPROPRIATIONS.

        (a) Reports Required.--Chapter 23 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 483. Reports on transfers from high-priority readiness
                            appropriations

        ``(a) Annual Reports.--Not later than the date on which the
    President submits the budget for a fiscal year to Congress pursuant to
    section 1105 of title 31, the Secretary of Defense shall 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 on transfers
    during the preceding fiscal year from funds available for each covered
    budget activity.
        ``(b) Midyear Reports.--Not later than June 1 of each fiscal year,
    the Secretary of Defense shall submit to the congressional committees
    specified in subsection (a) a report on transfers, during the first six
    months of that fiscal year, from funds available for each covered budget
    activity.
        ``(c) Matters To Be Included.--In each report under subsection (a)
    or (b), the Secretary of Defense shall include for each covered budget
    activity the following:
                ``(1) A statement, for the period covered by the report,
            of--
                        ``(A) the total amount of transfers into funds
                    available for that activity;
                        ``(B) the total amount of transfers from funds
                    available for that activity; and
                        ``(C) the net amount of transfers into, or out of,
                    funds available for that activity.

    [[Page 111 STAT. 1676]]

                ``(2) A detailed explanation of the transfers into, and out
            of, funds available for that activity during the period covered
            by the report.

        ``(d) Covered Budget Activity Defined.--In this section, the term
    `covered budget activity' means each of the following:
                ``(1) The budget activity groups (known as `subactivities')
            within the Operating Forces budget activity of the annual
            Operation and Maintenance, Army, appropriation that are
            designated as follows:
                        ``(A) All subactivities under the category of Land
                    Forces.
                        ``(B) Land Forces Depot Maintenance.
                        ``(C) Base Support.
                        ``(D) Maintenance of Real Property.
                ``(2) The Air Operations budget activity groups (known as
            `subactivities') within the Operating Forces budget activity of
            the annual Operation and Maintenance, Navy, appropriation that
            are designated as follows:
                        ``(A) Mission and Other Flight Operations.
                        ``(B) Fleet Air Training.
                        ``(C) Aircraft Depot Maintenance.
                        ``(D) Base Support.
                        ``(E) Maintenance of Real Property.
                ``(3) The Ship Operations budget activity groups (known as
            `subactivities') within the Operating Forces budget activity of
            the annual Operation and Maintenance, Navy, appropriation that
            are designated as follows:
                        ``(A) Mission and Other Ship Operations.
                        ``(B) Ship Operational Support and Training.
                        ``(C) Ship Depot Maintenance.
                        ``(D) Base Support.
                        ``(E) Maintenance of Real Property.
                ``(4) The Expeditionary Forces budget activity groups (known
            as `subactivities') within the Operating Forces budget activity
            of the annual Operation and Maintenance, Marine Corps,
            appropriation that are designated as follows:
                        ``(A) Operational Forces.
                        ``(B) Depot Maintenance.
                        ``(C) Base Support.
                        ``(D) Maintenance of Real Property.
                ``(5) The Air Operations and Combat Related Operations
            budget activity groups (known as `subactivities') within the
            Operating Forces budget activity of the annual Operation and
            Maintenance, Air Force, appropriation that are designated as
            follows:
                        ``(A) Primary Combat Forces.
                        ``(B) Primary Combat Weapons.
                        ``(C) Air Operations Training.
                        ``(D) Depot Maintenance.
                        ``(E) Base Support.
                        ``(F) Maintenance of Real Property.
                ``(6) The Mobility Operations budget activity group (known
            as a `subactivity') within the Mobilization budget activity of
            the annual Operation and Maintenance, Air Force, appropriation
            that is designated as Airlift Operations.

    [[Page 111 STAT. 1677]]

        ``(e) Termination.--The requirements specified in subsections (a)
    and (b) shall terminate upon the submission of the annual report under
    subsection (a) covering fiscal year 2000.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``483. Reports on transfers from high-priority readiness
               appropriations.''.

    SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

        (a) Annual Report Required.--(1) Chapter 23 of title 10, United
    States Code, is amended by inserting after section 483, as added by
    section 323, the following new section:

    ``Sec. 484. Annual report on aircraft inventory

        ``(a) Annual Report.--The Under Secretary of Defense (Comptroller)
    shall submit to Congress each year a report on the aircraft in the
    inventory of the Department of Defense. The Under Secretary shall submit
    the report when the President submits the budget to Congress under
    section 1105(a) of title 31.
        ``(b) Content.--The report shall set forth, in accordance with
    subsection (c), the following information:
                ``(1) The total number of aircraft in the inventory.
                ``(2) The total number of the aircraft in the inventory that
            are active, stated in the following categories (with appropriate
            subcategories for mission aircraft, training aircraft, dedicated
            test aircraft, and other aircraft):
                        ``(A) Primary aircraft.
                        ``(B) Backup aircraft.
                        ``(C) Attrition and reconstitution reserve aircraft.
                ``(3) The total number of the aircraft in the inventory that
            are inactive, stated in the following categories:
                        ``(A) Bailment aircraft.
                        ``(B) Drone aircraft.
                        ``(C) Aircraft for sale or other transfer to foreign
                    governments.
                        ``(D) Leased or loaned aircraft.
                        ``(E) Aircraft for maintenance training.
                        ``(F) Aircraft for reclamation.
                        ``(G) Aircraft in storage.
                ``(4) The aircraft inventory requirements approved by the
            Joint Chiefs of Staff.

        ``(c) Display of Information.--The report shall specify the
    information required by subsection (b) separately for the active
    component of each armed force and for each reserve component of each
    armed force and, within the information set forth for each such
    component, shall specify the information separately for each type,
    model, and series of aircraft provided for in the future-years defense
    program submitted to Congress.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 483, as added by
    section 323, the following new item:

    ``484. Report on aircraft inventory.''.

        (b) Special <<NOTE: 10 USC 484 note.>>  Submission Date for First
    Report.--The Under Secretary of Defense (Comptroller) shall submit the
    first report required under section 484 of title 10, United States Code
    (as added by subsection (a)), not later than January 30, 1998.

    [[Page 111 STAT. 1678]]

        (c) Modification of Budget <<NOTE: 10 USC 221 note.>>  Data
    Exhibits.--The Under Secretary of Defense (Comptroller) shall ensure
    that aircraft budget data exhibits of the Department of Defense that are
    submitted to Congress display total numbers of active aircraft where
    numbers of primary aircraft or primary authorized aircraft are displayed
    in those exhibits.

    SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING
                OR OTHER READINESS ACTIVITIES.

        (a) Congressional Notification.--Chapter 101 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 2014. Administrative actions adversely affecting military
                            training or other readiness activities

        ``(a) Congressional Notification.--Whenever an official of an
    Executive agency takes or proposes to take an administrative action
    that, as determined by the Secretary of Defense in consultation with the
    Chairman of the Joint Chiefs of Staff, affects training or any other
    readiness activity in a manner that has or would have a significant
    adverse effect on the military readiness of any of the armed forces or a
    critical component thereof, the Secretary shall submit a written
    notification of the action and each significant adverse effect to the
    head of the Executive agency taking or proposing to take the
    administrative action. At the same time, the Secretary shall transmit a
    copy of the notification to the President, the Committee on Armed
    Services of the Senate, and the Committee on National Security of the
    House of Representatives.
        ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the
    Secretary shall submit a written notification of an administrative
    action or proposed administrative action required by subsection (a) as
    soon as possible after the Secretary becomes aware of the action or
    proposed action.
        ``(2) The Secretary shall <<NOTE: Regulations.>>  prescribe policies
    and procedures to ensure that the Secretary receives information on an
    administrative action or proposed administrative action described in
    subsection (a) promptly after Department of Defense personnel receive
    notice of such an action or proposed action.

        ``(c) Consultation Between Secretary and Head of Executive Agency.--
    Upon notification with respect to an administrative action or proposed
    administrative action under subsection (a), the head of the Executive
    agency concerned shall--
                ``(1) respond promptly to the Secretary; and
                ``(2) consistent with the urgency of the training or
            readiness activity involved and the provisions of law under
            which the administrative action or proposed administrative
            action is being taken, seek to reach an agreement with the
            Secretary on immediate actions to attain the objective of the
            administrative action or proposed administrative action in a
            manner which eliminates or mitigates the adverse effects of the
            administrative action or proposed administrative action upon the
            training or readiness activity.

        ``(d) Moratorium.--(1) Subject to paragraph (2), upon notification
    with respect to an administrative action or proposed administrative
    action under subsection (a), the administrative action or proposed
    administrative action shall cease to be effective with respect to the
    Department of Defense until the earlier of--

    [[Page 111 STAT. 1679]]

                ``(A) the end of the five-day period beginning on the date
            of the notification; or
                ``(B) the date of an agreement between the head of the
            Executive agency concerned and the Secretary as a result of the
            consultations under subsection (c).

        ``(2) Paragraph (1) shall not apply with respect to an
    administrative action or proposed administrative action if the head of
    the Executive agency concerned determines that the delay in enforcement
    of the administrative action or proposed administrative action will pose
    an actual threat of an imminent and substantial endangerment to public
    health or the environment.
        ``(e) Effect of Lack of Agreement.--(1) If the head of an Executive
    agency and the Secretary do not enter into an agreement under subsection
    (c)(2), the Secretary shall submit a written notification to the
    President who shall take final action on the matter.
        ``(2) Not later than 30 days after the date on which the President
    takes final action on a matter under paragraph (1), the President shall
    submit to the committees referred to in subsection (a) a notification of
    the action.
        ``(f) Limitation on Delegation of Authority.--The head of an
    Executive agency may not delegate any responsibility under this section.
        ``(g) Definition.--In this section, the term `Executive agency' has
    the meaning given such term in section 105 of title 5, except that the
    term does not include the General Accounting Office.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2014. Administrative actions adversely affecting military training or
               other readiness activities.''.

    SEC. 326. COMMON <<NOTE: 10 USC 153 note.>>  MEASUREMENT OF OPERATIONS
                TEMPO AND PERSONNEL TEMPO.

        (a) Means for Measurement.--The Chairman of the Joint Chiefs of
    Staff shall, to the maximum extent practicable, develop (1) a common
    means of measuring the operations tempo (OPTEMPO) of each of the Armed
    Forces, and (2) a common means of measuring the personnel tempo
    (PERSTEMPO) of each of the Armed Forces. The Chairman shall consult with
    the other members of the Joint Chiefs of Staff in developing those
    common means of measurement.
        (b) PERSTEMPO Measurement.--The measurement of personnel tempo
    developed by the Chairman shall include a means of identifying the rate
    of deployment for individual members of the Armed Forces in addition to
    the rate of deployment for units.

    SEC. 327. INCLUSION <<NOTE: 10 USC 221 note.>>  OF AIR FORCE DEPOT
                MAINTENANCE AS OPERATION AND MAINTENANCE BUDGET LINE ITEMS.

        For fiscal year 1999 and each fiscal year thereafter, Air Force
    depot-level maintenance of materiel shall be displayed as one or more
    separate line items under each subactivity within the authorization
    request for operation and maintenance, Air Force, in the proposed budget
    for that fiscal year submitted to Congress pursuant to section 1105 of
    title 31, United States Code.

    [[Page 111 STAT. 1680]]

    SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

        (a) Prohibition.--The Secretary of a military department may not
    implement, or be required to implement, a new readiness system for units
    of the Armed Forces (as outlined in sections 329 and 330), under which a
    military unit would be categorized into one of several categories (known
    as ``tiers'') according to the likelihood that the unit will be required
    to respond to a military conflict and the time in which the unit will be
    required to respond, if that system would have the effect of changing
    the methods used as of October 1, 1996, by the Armed Forces under the
    jurisdiction of that Secretary for determining the priorities for
    allocating to such military units funding, personnel, equipment,
    equipment maintenance, and training resources, and the associated levels
    of readiness of those units that result from those priorities.
        (b) Report to Congress Requesting Waiver.--If the Secretary of
    Defense determines, following the review required by sections 329 and
    330 (or any similar review), that implementation for one or more of the
    Armed Forces of a tiered readiness system that is prohibited by
    subsection (a) would be in the national security interests of the United
    States, the Secretary shall submit to Congress a report setting forth
    that determination, together with the rationale for that determination,
    and a request for the enactment of legislation to allow implementation
    of such a system.
        (c) Rule of Construction.--Nothing in subsection (a) is intended to
    preclude the Secretary of Defense from taking necessary actions to
    maintain the combat preparedness of the active and reserve components of
    the Armed Forces.

    SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.

        (a) Requirement for Report.--Not later than January 31, 1998, the
    Chairman of the Joint Chiefs of Staff shall submit to the congressional
    defense committees a report on the military readiness requirements of
    the active and reserve components of the Armed Forces (including combat
    units, combat support units, and combat service support units). The
    report shall assess such requirements under a tiered readiness and
    response system that categorizes a given unit according to the
    likelihood that it will be required to respond to a military conflict
    and the time within which it will be required to respond.
        (b) Preparation by JCS and Commanders of Unified Commands.--The
    report required by subsection (a) shall be prepared jointly by the
    Chairman of the Joint Chiefs of Staff, 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 commander of the Special Operations
    Command, and the commanders of the other unified commands.
        (c) Assessment Scenario.--The report shall assess readiness
    requirements in a scenario that is based on the following assumptions:
                (1) That the Armed Forces of the United States must be
            capable of--
                        (A) fighting and winning, in concert with allies,
                    two major theater wars nearly simultaneously; and
                        (B) deterring or defeating a strategic attack on the
                    United States.

    [[Page 111 STAT. 1681]]

                (2) That the forces available for deployment are the forces
            included in the force structure recommended in the Quadrennial
            Defense Review, including all other planned force enhancements.

        (d) Assessment Elements.--(1) The report shall identify, by unit
    type, all major units of the active and reserve components of the Armed
    Forces and assess the readiness requirements of the units. Each
    identified unit shall be categorized within one of the following
    classifications:
                (A) Forward-deployed and crisis response forces, or ``Tier
            I'' forces, that possess limited internal sustainment capability
            and do not require immediate access to regional air bases or
            ports or overflight rights, including the following:
                        (i) Force units that are deployed in rotation at sea
                    or on land outside the United States.
                        (ii) Combat-ready crises response forces that are
                    capable of mobilizing and deploying within 10 days after
                    receipt of orders.
                        (iii) Forces that are supported by prepositioning
                    equipment afloat or are capable of being inserted into a
                    theater upon the capture of a port or airfield by
                    forcible entry forces.
                (B) Combat-ready follow-on forces, or ``Tier II'' forces,
            that can be mobilized and deployed to a theater within
            approximately 60 days after receipt of orders.
                (C) Combat-ready conflict resolution forces, or ``Tier III''
            forces, that can be mobilized and deployed to a theater within
            approximately 180 days after receipt of orders.
                (D) All other active and reserve component force units which
            are not categorized within a classification described in
            subparagraph (A), (B), or (C).

        (2) For the purposes of paragraph (1), the following units are major
    units:
                (A) In the case of the Army or Marine Corps, a brigade and a
            battalion.
                (B) In the case of the Navy, a squadron of aircraft, a ship,
            and a squadron of ships.
                (C) In the case of the Air Force, a squadron of aircraft.

        (e) Projection of Savings for Use for Modernization.--The report
    shall include a projection for fiscal years 1998 through 2003 of the
    amounts of the savings in operation and maintenance funding that--
                (1) could be derived by each of the Armed Forces by placing
            as many units as is practicable into the lower readiness
            categories among the tiers; and
                (2) could be made available for force modernization.

        (f) Form of Report.--The report under this section shall be
    submitted in unclassified form, but may contain a classified annex.
        (g) Planned Force Enhancement Defined.--In this section, the term
    ``planned force enhancement'', with respect to the force structure
    recommended in the Quadrennial Defense Review, means any future
    improvement in the capability of the force (including current strategic
    and future improvement in strategic lift capability) that is assumed in
    the development of the recommendation for the force structure set forth
    in the Quadrennial Defense Review.

    [[Page 111 STAT. 1682]]

    SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.

        (a) Requirement.--(1) 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 readiness posture of the Armed Forces described in
    subsection (b).
        (2) The Secretary shall prepare the report required under paragraph
    (1) with the assistance of the Joint Chiefs of Staff. In providing such
    assistance, the Chairman of the Joint Chiefs of Staff shall consult with
    the Chief of the National Guard Bureau.
        (b) Readiness Posture.--(1) The readiness posture to be covered by
    the report under subsection (a) is a readiness posture for units of the
    Armed Forces, or for designated units of the Armed Forces, that provides
    for a rotation of such units between a state of high readiness and a
    state of low readiness.
        (2) As part of the evaluation of the readiness posture described in
    paragraph (1), the report shall address in particular a readiness
    posture that--
                (A) establishes within the Armed Forces two equivalent
            forces each structured so as to be capable of fighting and
            winning a major theater war; and
                (B) provides for an alternating rotation of such forces
            between a state of high readiness and a state of low readiness.

        (3) The evaluation of the readiness posture described in paragraph
    (2) shall be based upon assumptions permitting comparison with the
    existing force structure as follows:
                (A) That there are assembled from among the units of the
            Armed Forces two equivalent forces each structured so as to be
            capable of fighting and winning a major theater war.
                (B) That each force referred to in subparagraph (A)
            includes--
                        (i) four active Army divisions, including one
                    mechanized division, one armored division, one light
                    infantry division, and one division combining airborne
                    units and air assault units, and appropriate support and
                    service support units for such divisions;
                        (ii) six divisions (or division equivalents) of the
                    Army National Guard or the Army Reserve that are
                    essentially equivalent in structure, and appropriate
                    support and service support units for such divisions;
                        (iii) six aircraft carrier battle groups;
                        (iv) six active Air Force fighter wings (or fighter
                    wing equivalents);
                        (v) four Air Force reserve fighter wings (or fighter
                    wing equivalents); and
                        (vi) one active Marine Corps expeditionary force.
                (C) That each force may be supplemented by critical units or
            units in short supply, including heavy bomber units, strategic
            lift units, and aerial reconnaissance units, that are not
            subject to the readiness rotation otherwise assumed for purposes
            of the evaluation or are subject to the rotation on a modified
            basis.
                (D) That units of the Armed Forces not assigned to a force
            are available for operations other than those essential to fight
            and win a major theater war, including peace operations.

    [[Page 111 STAT. 1683]]

                (E) That the state of readiness of each force alternates
            between a state of high readiness and a state of low readiness
            on a frequency determined by the Secretary (but not more often
            than once every six months) and with only one force at a given
            state of readiness at any one time.
                (F) That, during the period of state of high readiness of a
            force, any operations or activities (including leave and
            education and training of personnel) that detract from the near-
            term wartime readiness of the force are temporary and their
            effects on such state of readiness minimized.
                (G) That units are assigned overseas during the period of
            state of high readiness of the force to which the units are
            assigned primarily on a temporary duty basis.
                (H) That, during the period of high readiness of a force,
            the operational war plans for the force incorporate the
            divisions (or division equivalents) of the Army Reserve or Army
            National Guard assigned to the force in a manner such that one
            such division (or division equivalent) is, on a rotating basis
            for such divisions (or division equivalents) during the period,
            maintained in a high state of readiness and dedicated as the
            first reserve combat division to be transferred overseas in the
            event of a major theater war.

        (c) Report Elements.--The report under this section shall include
    the following elements for the readiness posture described in subsection
    (b)(2):
                (1) An estimate of the range of cost savings achievable over
            the long term as a result of implementing the readiness posture,
            including--
                        (A) the savings achievable from reduced training
                    levels and readiness levels during periods in which a
                    force referred to in subsection (b)(3)(A) is in a state
                    of low readiness; and
                        (B) the savings achievable from reductions in costs
                    of infrastructure overseas as a result of reduced
                    permanent change of station rotations.
                (2) An assessment of the potential risks associated with a
            lower readiness status for units assigned to a force in a state
            of low readiness under the readiness posture, including the
            risks associated with the delayed availability of such units
            overseas in the event of two nearly simultaneous major theater
            wars.
                (3) An assessment of the potential risks associated with
            requiring the forces under the readiness posture to fight a
            major war in any theater worldwide.
                (4) An assessment of the modifications of the current force
            structure of the Armed Forces that are necessary to achieve the
            range of cost savings estimated under paragraph (1), including
            the extent of the diminishment, if any, of the military
            capabilities of the Armed Forces as a result of the
            modifications.
                (5) An assessment whether or not the risks of diminished
            military capability associated with implementation of the
            readiness posture exceed the risks of diminished military
            capability associated with the modifications of the current
            force structure necessary to achieve cost savings equivalent to
            the best case for cost savings resulting from the implementation
            of the readiness posture.

    [[Page 111 STAT. 1684]]

        (d) Form of Report.--The report under this section shall be
    submitted in unclassified form, but may contain a classified annex.
        (e) Definitions.--In this section:
                (1) The term ``state of high readiness'', in the case of a
            military force, means the capability to mobilize first-to-arrive
            units of the force within 18 hours and last-to-arrive units
            within 120 days of a particular event.
                (2) The term ``state of low readiness'', in the case of a
            military force, means the capability to mobilize first-to-arrive
            units within 90 days and last-to-arrive units within 180 days of
            a particular event.

    SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER
                CERTAIN TRAINING EXERCISES PROGRAMS.

        (a) Report.--Not later than February 16, 1998, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report on the military exercises conducted by the Department of Defense
    during fiscal years 1995, 1996, and 1997 and the military exercises
    planned to be conducted during fiscal years 1998, 1999, and 2000, under
    the following training exercises programs:
                (1) The program known as the ``CJCS Exercise Program''.
                (2) The program known as the ``Partnership for Peace
            program''.
                (3) The Cooperative Threat Reduction programs.

        (b) Information on Exercises Conducted or To Be Conducted.--The
    report under subsection (a) shall include the following information for
    each exercise included in the report, which shall be set forth by fiscal
    year and shown within the fiscal year by the sponsoring command:
                (1) Name of the exercise.
                (2) Type, description, duration, and objectives of the
            exercise.
                (3) Participating units, including the number of personnel
            participating in each unit.
                (4) For each participating unit, the percentage of the tasks
            on that unit's specification of tasks (known as a mission
            essential task list) or a comparable specification (in the case
            of any of the Armed Forces not maintaining a mission essential
            task list designation) that were performed or are scheduled to
            be performed as part of the exercise.
                (5) The cost of the exercise paid or to be paid out of funds
            available to the Chairman of the Joint Chiefs of Staff and the
            cost to each of the Armed Forces participating in the exercise,
            with a description of the categories of activities for which
            those costs are incurred in each such case.
                (6) In the case of each planned exercise, the priority of
            the exercise in relation to all other exercises planned by the
            sponsoring command to be conducted during that fiscal year.
                (7) In the case of an exercise conducted or to be conducted
            in a foreign country or with military personnel of a foreign
            country, the military forces of the foreign country that
            participated or will participate in the exercise.

        (c) Assessment.--The report under subsection (a) shall include--

    [[Page 111 STAT. 1685]]

                (1) an assessment of the ability of each of the Armed Forces
            to meet requirements of the training exercises programs
            specified in subsection (a);
                (2) an assessment of the training value of each exercise
            covered in the report to each unit of the Armed Forces
            participating in the exercise, including for each such unit an
            assessment of the value of the percentage under subsection
            (b)(4) as an indicator of the training value of the exercise for
            that unit;
                (3) options to minimize the negative effects on operational
            and personnel tempo resulting from the training exercises
            programs; and
                (4) in the case of exercises to be conducted in a foreign
            country or with military personnel of a foreign country--
                        (A) an assessment of the training value of each
                    exercise covered in the report to the foreign countries
                    involved and the extent to which the exercise enhances
                    the readiness capabilities of all military forces
                    involved in the exercise (both United States and
                    foreign); and
                        (B) an assessment of the benefits to be derived
                    through enhanced military-to-military relationships
                    between the United States and foreign countries.

        (d) Funding Limitation Pending Receipt of Report.--Of the funds
    available for fiscal year 1998 for the conduct of the CJCS Exercise
    Program, not more than 90 percent may be expended before the date on
    which the report required under subsection (a) is submitted.

    SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

        (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
    on the deployments overseas of members of the Armed Forces (other than
    the Coast Guard). The report shall describe the deployments as of June
    30, 1996, and as of June 30, 1997.
        (b) Elements.--The report shall include the following, shown as of
    each date specified in subsection (a) and shown for the Armed Forces in
    the aggregate and separately for each of the Armed Forces:
                (1) The number of military personnel deployed overseas
            pursuant to a permanent duty assignment, shown in the aggregate
            and by country or ocean to which deployed.
                (2) The number of military personnel deployed overseas
            pursuant to a temporary duty assignment, including--
                        (A) the number engaged in training with units of a
                    single military department;
                        (B) the number engaged in United States military
                    joint exercises; and
                        (C) the number engaged in training with allied
                    units.
                (3) The number of military personnel deployed overseas who
            were engaged in contingency operations (including peacekeeping
            or humanitarian assistance missions) or other activities (other
            than those personnel covered by paragraphs (1) and (2)).

    [[Page 111 STAT. 1686]]

                      Subtitle C--Environmental Provisions

    SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL
                RESEARCH AND DEVELOPMENT
                PROGRAM SCIENTIFIC ADVISORY BOARD.

        Section 2904(b)(4) of title 10, United States Code, is amended by
    striking out ``three'' and inserting in lieu thereof ``not less than two
    and not more than four''.

    SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER
                AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY
                CERTIFICATION.

        (a) Authority To Enter Into Agreements With Indian Tribes.--Section
    327 of the National Defense Authorization Act for Fiscal Year 1997
    (Public Law 104-201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended--
                (1) in subsection (a), by inserting ``, or with an Indian
            tribe,'' after ``with an agency of a State or local
            government'';
                (2) by redesignating subsection (e) as subsection (f); and
                (3) by inserting after subsection (d) the following new
            subsection:

        ``(e) Definition.--In this section, the term `Indian tribe' has the
    meaning given that term by section 101(36) of the Comprehensive
    Environmental Response, Compensation, and Liability Act of 1980 (42
    U.S.C. 9601(36)).''.
        (b) Elimination of Certain Limitation on Authority.--Subsection
    (b)(1) of such section is amended by striking out ``in carrying out its
    environmental restoration activities''.
        (c) Additional Report Information.--Subsection (d) of such section
    is amended by adding at the end the following:
                ``(5) A statement of the funding that will be required to
            meet commitments made to State and local governments and Indian
            tribes under such agreements entered into during the fiscal year
            preceding the fiscal year in which the report is submitted.
                ``(6) A description of any cost-sharing arrangement under
            any such agreements.''.

        (d) Guidelines <<NOTE: 10 USC 2702 note.>>  for Reimbursement and
    Cost-Sharing.--Not later than 90 days after the date of enactment of
    this Act, the Secretary of Defense shall submit to Congress a report
    setting forth the guidelines established by the Secretary for
    reimbursement of State and local governments, and for cost-sharing
    between the Department of Defense, such governments, and vendors, under
    cooperative agreements entered into under such section 327.

        (e) Effective Date.--The <<NOTE: 10 USC 2702 note.>>  amendments
    made by this section shall take effect 30 days after the date on which
    the report required by subsection (d) is submitted to Congress.

    SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE
                TOXIC AND HAZARDOUS MATERIALS.

        (a) Storage of Materials Owned by Members and Dependents.--
    Subsection (a)(1) of section 2692 of title 10, United States Code, is
    amended by striking out ``by the Department of Defense.'' and inserting
    in lieu thereof the following: ``either by the Department of Defense or
    by a member of the armed forces (or a dependent of the member) assigned
    to or provided military housing on the installation.''.

    [[Page 111 STAT. 1687]]

        (b) Additional Authority.--Subsection (b) of such section is
    amended--
                (1) by redesignating paragraphs (1) through (9) as
            paragraphs (2) through (10), respectively; and
                (2) by inserting before paragraph (2) (as so redesignated)
            the following new paragraph (1):
                ``(1) the storage, treatment, or disposal of materials that
            will be or have been used in connection with an activity of the
            Department of Defense or in connection with a service to be
            performed on an installation of the Department for the benefit
            of the Department;''.

        (c) Storage and Disposal of Explosives To Assist Law Enforcement
    Agencies.--Subsection (b) of such section is
    amended in paragraph (3) (as redesignated by subsection (b))--
                (1) by striking out ``Federal law enforcement'' and
            inserting in lieu thereof ``Federal, State, or local law
            enforcement''; and
                (2) by striking out ``Federal agency'' and inserting in lieu
            thereof ``Federal, State, or local agency''.

        (d) Storage of Material in Connection With Authorized and Compatible
    Use of a Defense Facility.--Subsection (b) of such section is amended in
    paragraph (9) (as redesignated by subsection (b))--
                (1) by striking out ``by a private person in connection with
            the authorized and compatible use by that person of an
            industrial-type'' and inserting in lieu thereof ``in connection
            with the authorized and compatible use of a''; and
                (2) by striking out ``; and'' at the end and inserting in
            lieu thereof the following: ``, including the use of such a
            facility for testing materiel or training personnel;''.

        (e) Treatment and Disposal of Material in Connection With Authorized
    and Compatible Use of a Defense Facility.--Subsection (b) of such
    section is amended in paragraph (10) (as redesignated by subsection
    (b))--
                (1) by striking out ``by a private person in connection with
            the authorized and compatible commercial use by that person of
            an industrial-type'' and inserting in lieu thereof ``in
            connection with the authorized and compatible use of a'';
                (2) by striking out ``with that person'' and inserting in
            lieu thereof ``or agreement with the prospective user'';
                (3) by striking out ``for that person's'' in subparagraph
            (B) and inserting in lieu thereof ``for the prospective
            user's''; and
                (4) by striking out the period at the end and inserting in
            lieu thereof ``; and''.

        (f) Storage of Material in Connection With Space Launch
    Facilities.--Subsection (b) of such section is further amended by adding
    at the end the following new paragraph:
                ``(11) the storage of any material that is not owned by the
            Department of Defense if the Secretary of the military
            department concerned determines that the material is required or
            generated in connection with the use of a space launch facility
            located on an installation of the Department of Defense or on
            other land controlled by the United States.''.

        (g) Technical Amendments.--(1) Subsection (a)(1) of such section is
    further amended by striking out ``storage'' and inserting in lieu
    thereof ``storage, treatment,''.
        (2) The heading for such section is amended to read as follows:

    [[Page 111 STAT. 1688]]

    ``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and
                            hazardous materials''.

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

    ``2692. Storage, treatment, and disposal of nondefense toxic and
               hazardous materials.''.

        (h) Savings Clause.--Nothing <<NOTE: 10 USC 2692 note.>>  in the
    amendments made by this section is intended to modify environmental laws
    or laws relating to the siting of facilities.

    SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES
                AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

        (a) Annual Reports.--Section 2706(b)(2) of title 10, United States
    Code, is amended by adding at the end the following:
                ``(H) A statement of the fines and penalties imposed or
            assessed against the Department of Defense under Federal, State,
            or local environmental law during the fiscal year preceding the
            fiscal year in which the report is submitted, setting forth each
            Federal environmental statute under which a fine or penalty was
            imposed or assessed during the fiscal year, and, with respect to
            each such statute--
                        ``(i) the aggregate amount of fines and penalties
                    imposed or assessed during the fiscal year;
                        ``(ii) the aggregate amount of fines and penalties
                    paid during the fiscal year;
                        ``(iii) the total amount required for environmental
                    projects to be carried out by the Department of Defense
                    in lieu of the payment of fines or penalties; and
                        ``(iv) the number of fines and penalties imposed or
                    assessed during the fiscal year that were--
                              ``(I) $100,000 or less; and
                              ``(II) more than $100,000.''.

        (b) Report in Fiscal <<NOTE: 10 USC 2706 note.>>  Year 1998.--The
    statement submitted by the Secretary of Defense under subparagraph (H)
    of section 2706(b)(2) of title 10, United States Code, as added by
    subsection (a), in 1998 shall, to the maximum extent practicable,
    include the information required by that subparagraph for each of fiscal
    years 1994 through 1997.

    SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT OF
                DEFENSE OVERSEAS.

        Section 2706 of title 10, United States Code, is amended--
                (1) by redesignating subsection (d) as subsection (e); and
                (2) by inserting after subsection (c) the following new
            subsection (d):

        ``(d) Report on Environmental Activities Overseas.--(1) The
    Secretary of Defense shall submit to Congress each year, not later than
    30 days after the date on which the President submits to Congress the
    budget for a fiscal year, a report on the environmental activities of
    the Department of Defense overseas.
        ``(2) Each such report shall include a statement of the funding
    levels during such fiscal year for each of the following categories:
                ``(A) Compliance by the Department of Defense with
            requirements under a treaty, law, contract, or other agreement
            for environmental restoration or compliance activities.

    [[Page 111 STAT. 1689]]

                ``(B) Performance by the Department of Defense of other
            environmental restoration and compliance activities overseas.
                ``(C) Performance by the Department of Defense of any other
            overseas activities related to the environment, including
            conferences, meetings, and studies for pilot programs, and
            travel related to such activities.''.

    SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE
                OF THE ARMED FORCES IN BERMUDA.

        Not later <<NOTE: Reports.>>  than 120 days after the date of
    enactment of this Act, the Secretary of Defense shall submit to the
    congressional defense committees a report on any remaining environmental
    effects of the presence of the Armed Forces of the United States in
    Bermuda.

    SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES
                ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

        (a) Sense of Congress.--It is the sense of Congress that members of
    the Army, Navy, Air Force, and Marine Corps should not be deployed
    outside the United States to provide assistance to another nation in
    connection with environmental preservation activities in that nation,
    unless the Secretary of Defense determines that such activities are
    necessary for national security purposes.
        (b) Scope of Section.--For purposes of this section, environmental
    preservation activities do not include any of the following:
                (1) Activities undertaken for humanitarian purposes,
            disaster relief activities, peacekeeping activities, or
            operational training activities.
                (2) Environmental compliance and restoration activities
            associated with military installations and deployments outside
            the United States.

    SEC. 348. RECOVERY <<NOTE: 10 USC 2701 note.>>  AND SHARING OF COSTS OF
                ENVIRONMENTAL RESTORATION AT DEPARTMENT OF DEFENSE SITES.

        (a) Regulations.--Not later than March 1, 1998, the Secretary of
    Defense shall prescribe regulations containing the guidelines and
    requirements described in subsections (b) and (c).
        (b) Guidelines.--(1) The regulations prescribed under subsection (a)
    shall contain uniform guidelines for the military departments and
    defense agencies concerning the cost-recovery and cost-sharing
    activities of those departments and agencies.
        (2) The Secretary shall take appropriate actions to ensure the
    implementation of the guidelines.
        (c) Requirements.--The regulations prescribed under subsection (a)
    shall contain requirements for the Secretaries of the military
    departments and the heads of defense agencies to--
                (1) obtain all data that is relevant for purposes of cost-
            recovery and cost-sharing activities; and
                (2) identify any negligence or other misconduct that may
            preclude indemnification or reimbursement by the Department of
            Defense for the costs of environmental restoration at a
            Department site or justify the recovery or sharing of costs
            associated with such restoration.

        (d) Definition.--In this section, the term ``cost-recovery and cost-
    sharing activities'' means activities concerning--

    [[Page 111 STAT. 1690]]

                (1) the recovery of the costs of environmental restoration
            at Department of Defense sites from contractors of the
            Department and other private parties that contribute to
            environmental contamination at such sites; and
                (2) the sharing of the costs of such restoration with such
            contractors and parties.

    SEC. 349. PARTNERSHIPS <<NOTE: 10 USC 2702 note.>>  FOR INVESTMENT IN
                INNOVATIVE ENVIRONMENTAL TECHNOLOGIES.

        (a) Authority.--Subject to subsection (b), the Secretary of Defense
    may enter into a partnership with one or more private entities to
    demonstrate and validate innovative environmental technologies.
        (b) Limitations.--The Secretary of Defense may enter into a
    partnership with respect to an environmental technology under subsection
    (a) only if--
                (1) any private entities participating in the partnership
            are selected through the use of competitive procedures;
                (2) the partnership provides for parties other than the
            Department of Defense to provide at least 50 percent of the
            funding required (not including in-kind contributions or
            preexisting investments); and
                (3) the Secretary determines that--
                        (A) the technology has clear potential to be of
                    significant value to the Department of Defense in its
                    environmental remediation activities at a substantial
                    number of Department of Defense sites; and
                        (B) the technology would not be developed without
                    the commitment of Department of Defense funds.

        (c) Evaluation Guidelines.--Before entering into a partnership with
    respect to an environmental technology under subsection (a), the
    Secretary of Defense shall give consideration to the
    following:
                (1) The potential for the technology to be used by the
            Department of Defense for environmental remediation.
                (2) The technical feasibility and maturity of the
            technology.
                (3) The adequacy of financial and management plans to
            demonstrate and validate the technology.
                (4) The costs and benefits to the Department of Defense of
            developing and using the technology.
                (5) The potential for commercialization of the technology.
                (6) The proposed arrangements for sharing the costs of the
            partnership through the use of resources outside the Department
            of Defense.

        (d) Funding.--Under a partnership entered into under subsection (a),
    the Secretary of Defense may provide funds to the partner or partners
    from appropriations available to the Department of Defense for
    environmental activities, for a period of up to five years.
        (e) Report.--In the annual report required under section 2706(a) of
    title 10, United States Code, the Secretary of Defense shall include the
    following information with respect to partnerships entered into under
    this section:
                (1) The number of such partnerships.
                (2) A description of the nature of the technology involved
            in each such partnership.
                (3) A list of all partners in such partnerships.

    [[Page 111 STAT. 1691]]

        (f) Coordination.--The Secretary of Defense shall ensure that the
    Department of Defense coordinates with the Administrator of the
    Environmental Protection Agency in any verification sponsored by the
    Department of technologies demonstrated and validated by a partnership
    entered into under this section.
        (g) Procedures.--The Secretary of Defense shall develop appropriate
    procedures to ensure that all Department of Defense funds committed to a
    partnership entered into under this section are expended for the purpose
    authorized in the partnership agreement. The Secretary may not enter
    into a partnership under this section until 30 days after the date on
    which a copy of such procedures is provided to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives.
        (h) Termination of Authority.--The authority to enter into
    agreements under subsection (a) shall terminate three years after the
    date of the enactment of this Act.

    SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

        (a) Procurement Requirements.--Chapter 140 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 2378. Procurement of copier paper containing specified
                            percentages of post-consumer recycled content

        ``(a) Procurement Requirement.--(1) Except as provided in
    subsections (b) and (c), a department or agency of the Department of
    Defense may not procure copying machine paper after the applicable date
    specified in paragraph (2) unless the percentage of post-consumer
    recycled content of the paper meets the percentage then in effect under
    such paragraph.
        ``(2) The percentage of post-consumer recycled content of paper
    required under paragraph (1) is as follows:
                ``(A) 20 percent as of January 1, 1998.
                ``(B) 30 percent as of January 1, 1999.
                ``(C) 50 percent as of January 1, 2004.

        ``(b) Exceptions.--A department or agency of the Department of
    Defense is not required to procure copying machine paper containing a
    percentage of post-consumer recycled content that meets the applicable
    requirement in subsection (a) if the Secretary concerned determines that
    one or more of the following circumstances apply with respect to that
    procurement:
                ``(1) The cost of procuring copying machine paper satisfying
            the applicable requirement significantly exceeds the cost of
            procuring copying machine paper containing a percentage of post-
            consumer recycled content that does not meet such requirement.
            The Secretary concerned shall establish the cost differential to
            be applied under this paragraph.
                ``(2) Copying machine paper containing a percentage of post-
            consumer recycled content meeting such requirement is not
            reasonably available within a reasonable period of time.
                ``(3) Copying machine paper containing a percentage of post-
            consumer recycled content meeting such requirement does not meet
            performance standards of the department or agency for copying
            machine paper.

        ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the case of
    the requirement that will take effect on January 1, 2004,

    [[Page 111 STAT. 1692]]

    pursuant to subsection (a)(2)(C), the requirement shall not take effect
    with respect to a military department or Defense Agency if the Secretary
    of Defense determines that the department or agency will be unable to
    meet such requirement by that date.
        ``(2) The Secretary shall <<NOTE: Notice.>>  submit to Congress
    written notice of any determination made under paragraph (1) and the
    reasons for the determination. The Secretary shall submit such notice,
    if at all, not later than January 1, 2003.

        ``(d) Secretary Concerned Defined.--In this section, the term
    `Secretary concerned' means the Secretary of each military department
    and the Secretary of Defense with respect to the Defense Agencies.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2378. Procurement of copier paper containing specified percentages of
               post-consumer recycled content.''.

    SEC. 351. PILOT <<NOTE: 10 USC 2701 note.>>  PROGRAM FOR THE SALE OF AIR
                POLLUTION EMISSION REDUCTION INCENTIVES.

        (a) Authority.--(1) The Secretary of Defense may, in consultation
    with the Administrator of General Services, carry out a pilot program to
    assess the feasibility and advisability of the sale of economic
    incentives for the reduction of emission of air pollutants attributable
    to a facility of a military department.
        (2) The Secretary may carry out the pilot program during the period
    beginning on the date of the enactment of this Act and ending two years
    after such date.
        (b) Incentives Available for Sale.--(1) Under the pilot program, the
    Secretary may sell economic incentives for the reduction of emission of
    air pollutants attributable to a facility of a military department only
    if such incentives are not otherwise required for the activities or
    operations of the military department.
        (2) The Secretary may not, under the pilot program, sell economic
    incentives attributable to the closure or realignment of a military
    installation under a base closure law.
        (3) If the Secretary determines that additional sales of economic
    incentives are likely to result in amounts available for allocation
    under subsection (c)(2) in a fiscal year in excess of the limitation set
    forth in subparagraph (B) of that subsection, the Secretary shall not
    carry out such additional sales in that fiscal year.
        (c) Use of Proceeds.--(1) The proceeds of sale of economic
    incentives attributable to a facility of a military department shall be
    credited to the funds available to the facility for the costs of
    identifying, quantifying, or valuing economic incentives for the
    reduction of emission of air pollutants. The amount credited shall be
    equal to the cost incurred in identifying, quantifying, or valuing the
    economic incentives sold.
        (2)(A)(i) If after crediting under paragraph (1) a balance remains,
    the amount of such balance shall be available to the Department of
    Defense for allocation by the Secretary to the military departments for
    programs, projects, and activities necessary for compliance with Federal
    environmental laws, including the purchase of economic incentives for
    the reduction of emission of air pollutants.
        (ii) To the extent practicable, amounts allocated to the military
    departments under this subparagraph shall be made available to

    [[Page 111 STAT. 1693]]

    the facilities that generated the economic incentives providing the
    basis for the amounts.
        (B) The total amount allocated under this paragraph in a fiscal year
    from sales of economic incentives may not equal or exceed $500,000.
        (3) If after crediting under paragraph (1) a balance remains in
    excess of an amount equal to the limitation set forth in paragraph
    (2)(B), the amount of the excess shall be covered over into the Treasury
    as miscellaneous receipts.
        (4) Funds credited under paragraph (1) or allocated under paragraph
    (2) shall be merged with the funds to which credited or allocated, as
    the case may be, and shall be available for the same purposes and for
    the same period as the funds with which merged.
        (d) Definitions.--In this section:
                (1) The term ``base closure law'' means the following:
                        (A) Section 2687 of title 10, United States Code.
                        (B) Title II of the Defense Authorization Amendments
                    and Base Closure and Realignment Act (Public Law 100-
                    526; 10 U.S.C. 2687 note).
                        (C) The Defense Base Closure and Realignment Act of
                    1990 (part A of title XXIX of Public Law 101-510; 10
                    U.S.C. 2687 note).
                (2) The term ``economic incentives for the reduction of
            emission of air pollutants'' means any transferable economic
            incentives (including marketable permits and emission rights)
            necessary or appropriate to meet air quality requirements under
            the Clean Air Act (42 U.S.C. 7401 et seq.).

                       Subtitle D--Depot-Level Activities

    SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

        (a) Depot-Level Maintenance and Repair Defined.--Chapter 146 of
    title 10, United States Code, is amended by inserting before section
    2461 the following new section:

    ``Sec. 2460. Definition of depot-level maintenance and repair

        ``(a) In General.--In this chapter, the term `depot-level
    maintenance and repair' means (except as provided in subsection (b))
    material maintenance or repair requiring the overhaul, upgrading, or
    rebuilding of parts, assemblies, or subassemblies, and the testing and
    reclamation of equipment as necessary, regardless of the source of funds
    for the maintenance or repair. The term includes (1) all aspects of
    software maintenance classified by the Department of Defense as of July
    1, 1995, as depot-level maintenance and repair, and (2) interim
    contractor support or contractor logistics support (or any similar
    contractor support), to the extent that such support is for the
    performance of services described in the preceding sentence.
        ``(b) Exceptions.--(1) The term does not include the procurement of
    major modifications or upgrades of weapon systems that are designed to
    improve program performance or the nuclear refueling of an aircraft
    carrier. A major upgrade program covered by this exception could
    continue to be performed by private or public sector activities.

    [[Page 111 STAT. 1694]]

        ``(2) The term also does not include the procurement of parts for
    safety modifications. However, the term does include the installation of
    parts for that purpose.''.
        (b) Conforming Amendment.--Section 2469 of title 10, United States
    Code, is amended in subsections (a) and (b), by striking out ``or
    repair'' and inserting in lieu thereof ``and repair''.
        (c) Clerical Amendments.--(1) The table of sections at the beginning
    of chapter 146 of title 10, United States Code, is amended by inserting
    before the item relating to section 2461 the following new item:

    ``2460. Definition of depot-level maintenance and repair.''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part IV of subtitle A, of such title are amended by
    striking out the item relating to chapter 146 and inserting in lieu
    thereof the following new item:

    ``146. Contracting for Performance of Civilian Commercial or
    Industrial Type Functions........................................2460''.

    SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.

        (a) In General.--Section 2464 of title 10, United States Code, is
    amended to read as follows:

    ``Sec. 2464. Core logistics capabilities

        ``(a) Necessity for Core Logistics Capabilities.--(1) It is
    essential for the national defense that the Department of Defense
    maintain a core logistics capability that is Government-owned and
    Government-operated (including Government personnel and Government-owned
    and Government-operated equipment and facilities) to ensure a ready and
    controlled source of technical competence and resources necessary to
    ensure effective and timely response to a mobilization, national defense
    contingency situations, and other emergency requirements.
        ``(2) The Secretary of Defense shall identify the core logistics
    capabilities described in paragraph (1) and the workload required to
    maintain those capabilities.
        ``(3) The core logistics capabilities identified under paragraphs
    (1) and (2) shall include those capabilities that are necessary to
    maintain and repair the weapon systems and other military equipment
    (including mission-essential weapon systems or materiel not later than
    four years after achieving initial operational capability, but excluding
    systems and equipment under special access programs, nuclear aircraft
    carriers, and commercial items described in paragraph (5)) that are
    identified by the Secretary, in consultation with the Chairman of the
    Joint Chiefs of Staff, as necessary to enable the armed forces to
    fulfill the strategic and contingency plans prepared by the Chairman of
    the Joint Chiefs of Staff under section 153(a) of this title.
        ``(4) The Secretary of Defense shall require the performance of core
    logistics workloads necessary to maintain the core logistics
    capabilities identified under paragraphs (1), (2), and (3) at
    Government-owned, Government-operated facilities of the Department of
    Defense (including Government-owned, Government-operated facilities of a
    military department) and shall assign such facilities sufficient
    workload to ensure cost efficiency and technical competence in peacetime
    while preserving the surge capacity and reconstitution

    [[Page 111 STAT. 1695]]

    capabilities necessary to support fully the strategic and contingency
    plans referred to in paragraph (3).
        ``(5) The commercial items covered by paragraph (3) are commercial
    items that have been sold or leased in substantial quantities to the
    general public and are purchased without modification in the same form
    that they are sold in the commercial marketplace, or with minor
    modifications to meet Federal Government requirements.
        ``(b) Limitation on Contracting.--(1) Except as provided in
    paragraph (2), performance of workload needed to maintain a logistics
    capability identified by the Secretary under subsection (a)(2) may not
    be contracted for performance by non-Government personnel under the
    procedures and requirements of Office of Management and Budget Circular
    A-76 or any successor administrative regulation or policy (hereinafter
    in this section referred to as OMB Circular A-76).
        ``(2) The Secretary of Defense may waive paragraph (1) in the case
    of any such logistics capability and provide that performance of the
    workload needed to maintain that capability shall be considered for
    conversion to contractor performance in accordance with OMB Circular A-
    76. Any such waiver shall be made under regulations prescribed by the
    Secretary and shall be based on a determination by the Secretary that
    Government performance of the workload is no longer required for
    national defense reasons. Such regulations shall include criteria for
    determining whether Government performance of any such workload is no
    longer required for national defense reasons.
        ``(3)(A) A waiver under paragraph (2) may not take effect until the
    expiration of the first period of 30 days of continuous session of
    Congress that begins on or after the date on which the Secretary submits
    a report on the waiver to the Committee on Armed Services and the
    Committee on Appropriations of the Senate and the Committee on National
    Security and the Committee on Appropriations of the House of
    Representatives.
        ``(B) For the purposes of subparagraph (A)--
                ``(i) continuity of session is broken only by an adjournment
            of Congress sine die; and
                ``(ii) the days on which either House is not in session
            because of an adjournment of more than three days to a day
            certain are excluded in the computation of any period of time in
            which Congress is in continuous session.''.

        (b) Clerical Amendment.--The item relating to such section at the
    beginning of chapter 146 of such title is amended to read as follows:

    ``2464. Core logistics capabilities.''.

    SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR
                THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT
                PERSONNEL.

        Section 2466(a) of title 10, United States Code, is amended by
    striking out ``40 percent'' and inserting in lieu thereof ``50
    percent''.

    SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

        Subsection (e) of section 2466 of title 10, United States Code, is
    amended to read as follows:

    [[Page 111 STAT. 1696]]

        ``(e) Report.--(1) Not later than February 1 of each year, the
    Secretary of Defense shall submit to Congress a report identifying, for
    each military department and Defense Agency, the percentage of the funds
    referred to in subsection (a) that were expended during the preceding
    fiscal year for performance of depot-level maintenance and repair
    workloads by the public and private sectors as required by section 2466
    of this title.
        ``(2) Not later than 90 days after the date on which the Secretary
    submits the annual report under paragraph (1), the Comptroller General
    shall submit to Congress the Comptroller General's views on whether the
    Department of Defense has complied with the requirements of subsection
    (a) for the fiscal year covered by the report.''.

    SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING
                FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR
                WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED MILITARY
                INSTALLATIONS.

        (a) Application To Certain Workloads.--(1) Chapter 146 of title 10,
    United States Code, is amended by inserting after section 2469 the
    following new section:

    ``Sec. 2469a. Use of competitive procedures in contracting for
                            performance of depot-level maintenance and
                            repair workloads formerly performed at certain
                            military installations

        ``(a) Definitions.--In this section:
                ``(1) The term `closed or realigned military installation'
            means a military installation where a depot-level maintenance
            and repair facility was approved in 1995 for closure or
            realignment under the Defense Base Closure and Realignment Act
            of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
            2687 note).
                ``(2) The term `military installation' includes a former
            military installation that was a military installation when it
            was approved in 1995 for closure or realignment under the
            Defense Base Closure and Realignment Act of 1990 and that has
            been closed or realigned under the Act.
                ``(3) The terms `realignment' and `realigned' mean a
            decision under the Defense Base Closure and Realignment Act of
            1990 that results in both a reduction and relocation of
            functions and civilian personnel positions.

        ``(b) Covered Depot-Level Maintenance and Repair Workloads.--Except
    as provided in subsection (c), this section applies with respect to any
    depot-level maintenance and repair workload that--
                ``(1) was performed as of January 1, 1997, at a military
            installation that was approved in 1995 for closure or
            realignment under the Defense Base Closure and Realignment Act
            of 1990 and that has been closed or realigned under the Act; and
                ``(2) is proposed to be converted from performance by
            Department of Defense personnel to performance by a private
            sector source.

        ``(c) Exceptions.--This section shall not apply with respect to--

    [[Page 111 STAT. 1697]]

                ``(1) a depot-level maintenance and repair workload that is
            to be consolidated to another military installation (other than
            a closed or realigned military installation) as a result of a
            base closure or realignment action or a decision made by the
            Secretary concerned or the Defense Depot Maintenance Council;
                ``(2) a workload necessary to maintain a core logistics
            capability identified under section 2464 of this title; or
                ``(3) any contract originally entered into before the date
            of the enactment of the National Defense Authorization Act for
            Fiscal Year 1998.

        ``(d) Conditions and Solicitation.--A solicitation of offers for the
    performance of any depot-level maintenance and repair workload described
    in subsection (b) may be issued, and a contract may be awarded pursuant
    to such a solicitation, only if the following conditions are met with
    respect to the contract and the solicitation specifically states the
    conditions:
                ``(1) The source selection process used in the case of the
            solicitation and contract permits the consideration of offers
            submitted by private sector sources and offers submitted by
            public sector sources.
                ``(2) The source selection process used in the case of the
            solicitation and contract requires that, in the comparison of
            offers, there be taken into account--
                        ``(A) the fair market value (or if fair market value
                    cannot be determined, the estimated book value) of any
                    land, plant, or equipment from a military installation
                    that is proposed by a private offeror to be used to meet
                    a specific workload (whether these assets are provided
                    to the offeror by a local redevelopment authority or by
                    any other source approved by an official of the
                    Department of Defense); and
                        ``(B) the total estimated direct and indirect costs
                    that will be incurred by the Department of Defense and
                    the total estimated direct and indirect savings
                    (including overhead) that will be derived by the
                    Department of Defense.
                ``(3) The cost standards used to determine the depreciation
            of facilities and equipment shall, to the maximum extent
            practicable, provide identical treatment to all public and
            private sector offerors.
                ``(4) Any offeror, whether public or private, may offer to
            perform the workload at any location or locations selected by
            the offeror and to team with any other public or private entity
            to perform that workload at one or more locations, including a
            Center of Industrial and Technical Excellence designated under
            section 2474 of this title.
                ``(5) No offeror may be given any preferential consideration
            for, or in any way be limited to, performing the workload in-
            place or at any other single location.

        ``(e) Contracts for Multiple Workloads.--(1) A solicitation may be
    issued for a single contract for the performance of multiple depot-level
    maintenance and repair workloads described in subsection (b) only if--
                ``(A) the Secretary of Defense determines in writing that
            the individual workloads cannot as logically and economically

    [[Page 111 STAT. 1698]]

            be performed without combination by sources that are potentially
            qualified to submit an offer and to be awarded a contract to
            perform those individual workloads;
                ``(B) the Secretary submits <<NOTE: Reports.>>  to Congress
            a report setting forth the determination together with the
            reasons for the determination; and
                ``(C) the solicitation of offers for the contract is issued
            more than 60 days after the date on which the Secretary submits
            the report.

        ``(2) The Comptroller General shall review each report submitted
    under paragraph (1)(B) and, not later than 30 days after the report is
    submitted to Congress, shall submit to Congress the Comptroller
    General's views regarding the determination of the Secretary that is set
    forth in the report, together with any other findings that the
    Comptroller General considers appropriate.
        ``(f) Competitive Procedures Required.--Section 2304(c)(7) of this
    title shall not be used as the basis for an exception to the requirement
    to use competitive procedures for any contract for a depot-level
    maintenance and repair workload described in subsection (b).
        ``(g) Reviews of Competitive Procedures.--If a solicitation of
    offers for a contract for, or award of, any depot-level maintenance and
    repair workload described in subsection (b) is issued, the Comptroller
    General shall--
                ``(1) within 45 days after the issuance of the solicitation,
            review the solicitation and report to Congress on whether the
            solicitation--
                        ``(A) provides substantially equal opportunity for
                    public and private offerors to compete for the contract
                    without regard to the location at which the workload is
                    to be performed; and
                        ``(B) is in compliance with the requirements of this
                    section and all applicable provisions of law and
                    regulations; and
                ``(2) within 45 days after any contract or award resulting
            from the solicitation is entered into or made, review the
            contract or award, including the contracting or award process,
            and report to Congress on whether--
                        ``(A) the procedures used to conduct the
                    competition--
                              ``(i) provided substantially equal opportunity
                          for public and private offerors to compete for the
                          contract without regard to the location at which
                          the workload is to be performed; and
                              ``(ii) were in compliance with the
                          requirements of this section and all applicable
                          provisions of law and regulations;
                        ``(B) appropriate consideration was given to factors
                    other than cost in the selection of the source for
                    performance of the workload; and
                        ``(C) the contract or award resulted in the lowest
                    total cost to the Department of Defense for performance
                    of the workload.

        ``(h) Resolution of Workload Award Objections.--Any public or
    private entity may, pursuant to procedures established by the Secretary,
    object to a solicitation of offers under this section for the
    performance of any depot-level maintenance and repair workload, or the
    award or proposed award of any workload pursuant

    [[Page 111 STAT. 1699]]

    to such a solicitation. The Secretary may designate a qualified
    individual or entity to review the objection; however, the Secretary
    shall not designate the Source Selection Authority or any individual
    from the same military department as the Source Selection Authority to
    review the objection. The Secretary shall take appropriate action to
    address any defect in the solicitation or award in the event that the
    objection is sustained.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2469 the
    following new item:

    ``2469a. Use of competitive procedures in contracting for performance of
               depot-level maintenance and repair workloads formerly
               performed at certain military installations.''.

        (b) Limitation <<NOTE: 10 USC 2469a note.>>  Relating to Timing of
    Solicitation.--The first solicitation of offers from private sector
    sources for the performance of a depot-level maintenance and repair
    workload described in subsection (b) of section 2469a of title 10,
    United States Code, as added by subsection (a), may be issued pursuant
    to such section only after the date that is 30 days after the latest of
    the following:
                (1) The date on which the Secretary of Defense publishes and
            submits to Congress a plan or Department of Defense directive
            that sets forth the specific procedures for the conduct of
            competitions among private and public sector entities for such
            depot-level maintenance and repair workloads.
                (2) The date on which the Secretary of Defense submits to
            Congress the report on allocation of workloads required under
            subsection (c).
                (3) The date on which the Comptroller General is required to
            submit the report to Congress under subsection (d).

        (c) Report of <<NOTE: 10 USC 2469a note.>>  Allocation of
    Workload.--Before any solicitation of offers for the performance by a
    private sector source of a depot-level maintenance and repair workload
    at a closed or realigned installation described in subsection (b) of
    section 2469a of title 10, United States Code, as added by subsection
    (a), is to be issued, the Secretary of Defense shall submit to Congress
    a report describing the allocation proposed by the Secretary of all
    workloads that were performed at that closed or realigned military
    installation (as defined in subsection (a) of such section) as of July
    1, 1995, including--
                (1) the workloads that are considered to be core logistics
            functions under section 2464 of such title;
                (2) the workloads that are proposed to be transferred to a
            military installation other than a closed or realigned military
            installation;
                (3) the workloads that are proposed to be included in the
            public-private competitions carried out under section 2469a of
            such title, and, if any of such workloads are to be combined for
            purposes of such a competition, the reasons for combining the
            workloads, together with a description of how the workloads are
            to be combined;
                (4) any workload that has been determined within the
            Department of Defense as no longer being necessary;
                (5) the proposed schedule for implementing the allocations
            covered by the report; and
                (6) the anticipated capacity utilization of the military
            installations and former military installations to which
            workloads are to be transferred, based on the maximum potential

    [[Page 111 STAT. 1700]]

            capacity certified to the 1995 Defense Base Closure and
            Realignment Commission, after the transfers are completed (not
            taking into account any workloads that may be transferred as a
            result of a public-private competition carried out under section
            2469a of such title, as described in paragraph (3)).

        (d) Review Regarding Award for C-5 Aircraft Workload.--(1) The
    Comptroller General shall conduct a review of the award for the
    performance of the C-5 aircraft workload that was made to Warner Robins
    Air Logistics Center. As part of the review, the Comptroller General
    shall--
                (A) determine whether the procedures used to conduct the
            competition--
                        (i) provided substantially equal opportunity for
                    public and private offerors to compete for the award
                    without regard to the location at which the workload is
                    to be performed; and
                        (ii) are in compliance with the requirements of all
                    applicable provisions of law and the Federal Acquisition
                    Regulation; and
                (B) determine whether that award results in the lowest total
            cost to the Department of Defense for performance of the
            workload.

        (2) Not later <<NOTE: Reports.>>  than 60 days after the date of the
    enactment of this Act, the Comptroller General shall submit to Congress
    a report containing the results of the review.

    SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES
                BY CONSTRAINTS ON PERSONNEL LEVELS.

        Section 2472(a) of title 10, United States Code, is amended by
    striking out the first sentence and inserting in lieu thereof the
    following: ``The civilian employees of the Department of Defense,
    including the civilian employees of the military departments and the
    Defense Agencies, who perform, or are involved in the performance of,
    depot-level maintenance and repair workloads may not be managed on the
    basis of any constraint or limitation in terms of man years, end
    strength, full-time equivalent positions, or maximum number of
    employees.''.

    SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

        (a) Designation and Purpose.--(1) Chapter 146 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 2474. Centers of Industrial and Technical Excellence:
                            designation; public-private partnerships

        ``(a) Designation.--(1) The Secretary of Defense shall designate
    each depot-level activity of the military departments and the Defense
    Agencies (other than facilities approved for closure or major
    realignment under the Defense Base Closure and Realignment Act of 1990
    (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)) as a
    Center of Industrial and Technical Excellence in the recognized core
    competencies of the activity.
        ``(2) The Secretary shall establish a policy to encourage the
    Secretary of each military department and the head of each Defense
    Agency to reengineer industrial processes and adopt best-business
    practices at their depot-level activities in connection with their core
    competency requirements, so as to serve as recognized leaders

    [[Page 111 STAT. 1701]]

    in their core competencies throughout the Department of Defense and in
    the national technology and industrial base (as defined in section
    2500(1) of this title).
        ``(3) The Secretary of a military department may conduct a pilot
    program, consistent with applicable requirements of law, to test any
    practices referred to in paragraph (2) that the Secretary determines
    could improve the efficiency and effectiveness of depot-level
    operations, improve the support provided by depot-level activities for
    the armed forces user of the services of such activities, and enhance
    readiness by reducing the time that it takes to repair equipment.
        ``(b) Public-Private Partnerships.--The Secretary of Defense shall
    enable Centers of Industrial and Technical Excellence to enter into
    public-private cooperative arrangements for the performance of depot-
    level maintenance and repair at such Centers and shall encourage the use
    of such arrangements to maximize the utilization of the capacity at such
    Centers. A public-private cooperative arrangement under this subsection
    shall be known as a `public-private partnership'.
        ``(c) Crediting of Amounts for Performance.--Amounts received by a
    Center for work performed under a public-private partnership shall be
    credited to the appropriation or fund, including a working-capital fund,
    that incurs the cost of performing the work.
        ``(d) Additional Work.--The policy required under subsection (a)
    shall include measures to enable a private sector entity that enters
    into a partnership arrangement under subsection (b) or leases excess
    equipment and facilities at a Center of Industrial and Technical
    Excellence pursuant to section 2471 of this title to perform additional
    work at the Center, subject to the limitations outlined in subsection
    (b) of such section, outside of the types of work normally assigned to
    the Center.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2474. Centers of Industrial and Technical Excellence: designation;
               public-private partnerships.''.

        (b) Lease of Excess Depot-Level Equipment and Facilities.--(1)
    Section 2471(c) of such title is amended to read as follows:
        ``(c) Conformance With Authority Under Section 2667.--The provisions
    of subsection (d) of section 2667 of this title shall apply to this
    section in the same manner as such provisions are applicable under that
    section.''.
        (2) Section 2667(d)(2) of such title is amended by inserting ``or
    working capital fund'' before ``from which''.
        (c) Reporting Requirement.--Not later <<NOTE: 10 USC 2474 note.>>
    than March 1, 1999, the Secretary of Defense shall submit to Congress a
    report on the policies established by the Secretary pursuant to section
    2474 of title 10, United States Code, to implement the requirements of
    such section. The report shall include--
                (1) the details of any public-private partnerships entered
            into as of that date under subsection (b) of such section;
                (2) the details of any leases entered into as of that date
            under section 2471 of such title with authorized entities for
            dual-use (military and nonmilitary) purposes; and
                (3) the effect that the partnerships and leases had on
            capacity utilization, depot rate structures, and readiness.

    [[Page 111 STAT. 1702]]

    SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL SHIPYARDS
                TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.

        Section 1425(e) of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking
    out ``September 30, 1997'' and inserting in lieu thereof ``September 30,
    1999''.

    SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL
                MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING
                REQUIREMENT.

        Section 311 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C. 2464 note) is
    amended by <<NOTE: 10 USC 2466, 2469.>>  striking out subsections (f)
    and (g).

    SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY
                WORKLOAD AND PERFORMANCE SYSTEM.

        (a) Limitation.--Except as necessary to implement BRAC 1995
    decisions at Red River Army Depot, Texas, and Letterkenny Army Depot,
    Pennsylvania, the Secretary of the Army may not initiate a reduction in
    force of civilian employees at the five Army depots participating in the
    demonstration and testing of the Army Workload and Performance System
    until after the date on which the Secretary submits to Congress a report
    certifying that the Army Workload and Performance System is fully
    operational.
        (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 decisions''
    means the decisions to close or realign certain military installations
    resulting from the recommendations approved in 1995 under the Defense
    Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
    Law 101-510; 10 U.S.C. 2687 note).

    SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG
                DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR
                FACILITIES.

        (a) Report.--Not later than May 31, 1998, the Secretary of Defense
    shall submit to Congress a report on the allocation among facilities of
    the Department of Defense and facilities in the private sector of the
    logistics activities that are necessary to maintain and repair the
    weapon systems and other military equipment identified by the Secretary,
    in consultation with the Chairman of the Joint Chiefs of Staff, as being
    necessary to enable the Armed Forces to conduct a strategic or major
    theater war.
        (b) Elements.--The report under subsection (a) shall set forth the
    following:
                (1) The systems or equipment identified under subsection (a)
            that must be maintained and repaired in Government-owned,
            Government-operated facilities, using personnel and equipment of
            the Department, as a result of the Secretary's determination
            that--
                        (A) the work involves unique or valuable workforce
                    skills that should be maintained in the public sector in
                    the national interest;
                        (B) the base of private sector sources having the
                    capability to perform the workloads includes industry
                    sectors that are vulnerable to work stoppages;
                        (C) the private sector sources having the capability
                    to perform the workloads have insufficient workforce
                    levels

    [[Page 111 STAT. 1703]]

                    or skills to perform the depot-level maintenance and
                    repair workloads--
                              (i) in the quantity necessary, or as rapidly
                          as the Secretary considers necessary, to enable
                          the armed forces to fulfill the national military
                          strategy; or
                              (ii) without a significant disruption or delay
                          in the maintenance and repair of equipment;
                        (D) the need for performance of workloads is too
                    infrequent, cyclical, or variable to sustain a reliable
                    base of private sector sources having the workforce
                    levels or skills to perform the workloads;
                        (E) the market conditions or workloads are
                    insufficient to ensure that the price of private sector
                    performance of the workloads can be controlled through
                    competition or other means;
                        (F) private sector sources are not adequately
                    responsive to the requirements of the Department for
                    rapid, cost-effective, and flexible response to surge
                    requirements or other contingency situations, including
                    changes in the mix or priority of previously scheduled
                    workloads and reassignment of employees to different
                    workloads without the requirement for additional
                    contractual negotiations;
                        (G) private sector sources are less willing to
                    assume responsibility for performing the workload as a
                    result of the possibility of direct military or
                    terrorist attack; or
                        (H) private sector sources cannot maintain
                    continuity of workforce expertise as a result of high
                    rates of employee turnover.
                (2) The systems or equipment identified under subsection (a)
            that must be maintained and repaired in Government-owned
            facilities, whether Government-operated or contractor-operated,
            as a result of the Secretary's determination that--
                        (A) the work involves facilities, technologies, or
                    equipment that are unique and sufficiently valuable that
                    the facilities, technologies, or equipment must be
                    maintained in the public sector in the national
                    interest;
                        (B) the private sector sources having the capability
                    to perform the workloads have insufficient facilities,
                    technology, or equipment to perform the depot-level
                    maintenance and repair workloads--
                              (i) in the quantity necessary, or as rapidly
                          as the Secretary considers necessary, to enable
                          the armed forces to fulfill the national military
                          strategy; or
                              (ii) without a significant disruption or delay
                          in the maintenance and repair of equipment; or
                        (C) the need for performance of workloads is too
                    infrequent, cyclical, or variable to sustain a reliable
                    base of private sector sources having the facilities,
                    technology, or equipment to perform the workloads.
                (3) The systems or equipment identified under subsection (a)
            that may be maintained and repaired in private sector
            facilities.
                (4) The approximate percentage of the total maintenance and
            repair workload of the Department of Defense necessary for the
            systems and equipment identified under subsection (a) that would
            be performed at Department of Defense facilities,

    [[Page 111 STAT. 1704]]

            and at private sector facilities, as a result of the
            determinations made for purposes of paragraphs (1), (2), and
            (3).

    SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR
                AND MAINTENANCE.

        (a) Findings.--Congress makes the following findings:
                (1) In order to reduce the time that the crew of a naval
            vessel is away from the homeport of the vessel, the Navy seeks
            to perform ship repair and maintenance of the vessel at the
            homeport of the vessel whenever it takes six months or less to
            accomplish the work involved.
                (2) At the same time, the Navy seeks to distribute ship
            repair and maintenance work among the Navy shipyards (known as
            to ``level load'') in order to more fully utilize personnel
            resources.
                (3) During periods when a Navy shipyard is not utilized to
            its capacity, the Navy sometimes sends workers at the shipyard,
            on a temporary duty basis, to perform ship repairs and
            maintenance at a homeport not having a Navy shipyard.
                (4) This practice is a more efficient use of civilian
            employees who might otherwise not be fully employed on work
            assigned to Navy shipyards.

        (b) Comptroller General Review and Report.--(1) The Comptroller
    General shall review the Navy's practice of using temporary duty
    assignments of personnel to perform ship maintenance and repair work at
    homeports not having Navy shipyards. The review shall include the
    following:
                (A) An assessment of the rationale, conditions, and factors
            supporting the Navy's practice.
                (B) A determination of whether the practice is cost-
            effective.
                (C) The factors affecting future requirements for, and the
            adherence to, the practice, together with an assessment of the
            factors.

        (2) Not later than May 1, 1998, the Comptroller General shall submit
    a report on the review to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives.

    SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF
                GROUND COMMUNICATION-ELECTRONIC WORKLOAD.

        It is the sense of Congress that the transfer of the ground
    communication-electronic workload to Tobyhanna Army Depot, Pennsylvania,
    in the realignment of the performance of such function should be carried
    out in adherence to the schedule prescribed for that transfer by the
    Defense Depot Maintenance Council on March 13, 1997, as follows:
                (1) Transfer of 20 percent of the workload in fiscal year
            1998.
                (2) Transfer of 40 percent of the workload in fiscal year
            1999.
                (3) Transfer of 40 percent of the workload in fiscal year
            2000.

    [[Page 111 STAT. 1705]]

       Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

    SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES
                AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.

        (a) Description of Chapter.--(1) The heading of chapter 147 of title
    10, United States Code, is amended to read as follows:

    ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND
                            RECREATION ACTIVITIES''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part IV of subtitle A, of such title are amended by
    striking out the item relating to chapter 147 and inserting in lieu
    thereof the following new item:

    ``147. Commissaries and Exchanges and Other Morale, Welfare, and
    Recreation Activities............................................2481''.

        (b) Transfer and Redesignation of Unrelated Provisions.--(1) Section
    2481 of title 10, United States Code, is transferred to chapter 159 of
    such title, inserted after section 2685, and redesignated as section
    2686.
        (2) Sections 2483 and 2490 of such title are transferred to the end
    of subchapter III of chapter 169 of such title and redesignated as
    sections 2867 and 2868, respectively.
        (3) Section 2491 of such title is redesignated as section 2500.
        (c) Clerical Amendments.--(1) The table of sections at the beginning
    of chapter 147 of title 10, United States Code, is amended by striking
    out the items relating to sections 2481, 2483, and 2490.
        (2) The table of sections at the beginning of chapter 159 of such
    title is amended by inserting after the item relating to section 2685
    the following new item:

    ``2686. Utilities and services: sale; expansion and extension of systems
               and facilities.''.

        (3) The table of sections at the beginning of subchapter III of
    chapter 169 of such title is amended by adding at the end the following
    new items:

    ``2867. Sale of electricity from alternate energy and cogeneration
               production facilities.
    ``2868. Utility services: furnishing for certain buildings.''.

        (4) The table of sections at the beginning of subchapter I of
    chapter 148 of such title is amended by striking out the item relating
    to section 2491 and inserting in lieu thereof the following new item:

    ``2500. Definitions.''.

        (5) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part IV of subtitle A, of such title are amended by
    striking out the item relating to chapter 148 and inserting in lieu
    thereof the following new item:

    ``148. National Defense Technology and Industrial Base, Defense
    Reinvestment, and Defense Conversion.............................2500''.

    [[Page 111 STAT. 1706]]

        (d) Conforming Amendments.--(1) Section 2534(d) of title 10, United
    States Code, is amended by striking out ``section 2491(1)'' both places
    it appears and inserting in lieu thereof ``section 2500(1)''.
        (2) Section 2865(b)(2) of such title is amended by striking out
    ``section 2483(b)(2)'' and inserting in lieu thereof ``section
    2867(b)(2)''.

    SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

        (a) Authorized Commissary Merchandise Categories.--Subsection (b) of
    section 2486 of title 10, United States Code, is
    amended--
                (1) by striking out the matter preceding paragraph (1) and
            inserting in lieu thereof the following: ``(b) Authorized
            Commissary Merchandise Categories.--Merchandise sold in, at, or
            by commissary stores may include items only in the following
            categories:''; and
                (2) by striking out paragraph (11) and inserting in lieu
            thereof the following new paragraph:
                ``(11) Such other <<NOTE: Reports.>>  merchandise categories
            as the Secretary of Defense may prescribe, except that the
            Secretary shall submit to Congress, not later than March 1 of
            each year, a report describing--
                        ``(A) any addition of, or change in, a merchandise
                    category proposed to be made under this paragraph during
                    the one-year period beginning on that date; and
                        ``(B) those additions and changes in merchandise
                    categories actually made during the preceding one-year
                    period.''.

        (b) Codification of Uniform Sales Price Surcharge or Adjustment.--
    Subsection (c) of such section is amended--
                (1) by inserting ``Uniform Sales Price Surcharge or
            Adjustment.--'' after ``(c)'';
                (2) by striking out ``in commissary stores.'' and inserting
            in lieu thereof ``in, at, or by commissary stores.''; and
                (3) by adding at the end the following new sentence:
            ``Effective on the date of the enactment of the National Defense
            Authorization Act for Fiscal Year 1998, the uniform percentage
            shall be equal to five percent and may not be changed except by
            a law enacted after such date.''.

        (c) Establishment of Sales Price; Congressional Notification.--
    Subsection (d) of such section is amended to read as follows:
        ``(d) Sales Price Establishment.--(1) The Secretary of Defense shall
    establish the sales price of each item of merchandise sold in, at, or by
    commissary stores at the level that will recoup the actual product cost
    of the item (consistent with this section and sections 2484 and 2685 of
    this title).
        ``(2) Any change in the pricing policies for merchandise sold in,
    at, or by commissary stores shall not take effect until the Secretary of
    Defense submits written notice of the proposed change to Congress and a
    period of 90 days of continuous session of Congress expires following
    the date on which notice was received. For purposes of this paragraph,
    the continuity of a session of Congress is broken only by an adjournment
    of the Congress sine die, and the days on which either House is not in
    session because of an adjournment or recess of more than three days to a
    day certain are excluded in a computation of such 90-day period.''.

    [[Page 111 STAT. 1707]]

        (d) Special Rules for Certain Merchandise.--Such section is further
    amended by adding at the end the following new subsection:
        ``(f) Special Rules for Certain Merchandise.--(1) Notwithstanding
    the general requirement that merchandise sold in, at, or by commissary
    stores be commissary store inventory, the Secretary of Defense may
    authorize the sale of items in the merchandise categories specified in
    paragraph (2) as noncommissary store inventory. Subsections (c) and (d)
    shall not apply to the pricing of such merchandise items.
        ``(2) The merchandise categories referred to in paragraph (1) are as
    follows:
                ``(A) Magazines and other periodicals.
                ``(B) Tobacco products.''.

        (e) Clerical and Conforming Amendments.--Such section is further
    amended--
                (1) in subsection (a), by inserting ``In General.--'' after
            ``(a)''; and
                (2) in subsection (e)--
                        (A) by inserting ``Special Rule for Brand-Name
                    Commercial Items.--'' after ``(e)''; and
                        (B) by striking out ``in commissary stores'' both
                    places it appears and inserting in lieu thereof ``in,
                    at, or by commissary stores''.

    <<NOTE: 10 USC 2486 note.>>     (f) Report on Merchandise Categories.--
    Not later than 30 days after the date of the enactment of this Act, the
    Secretary of Defense shall submit to Congress a report specifying the
    merchandise categories authorized for sale sold in, at, or by commissary
    stores pursuant to regulations prescribed under subsection (b)(11) of
    section 2486 of title 10, United States Code, as in effect before such
    date.

    SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME
                COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

        Section 2486(e) of title 10, United States Code, as amended by
    section 372(e)(2), is further amended by adding at the end the following
    new sentence: ``In determining whether a brand name commercial item is
    regularly sold outside of commissary stores, the Secretary shall
    consider only sales of the item on a regional or national basis by
    commercial grocery or other retail operations consisting of multiple
    stores.''.

    SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE
                ACTIVITIES.

        (a) Treatment of Revenues.--Section 2685 of title 10, United States
    Code, is amended by adding at the end the following new subsection:
        ``(e) Other Sources of Funds for Construction and Improvements.--
    Revenues received by the Secretary of Defense from the following sources
    or activities of commissary store facilities shall be available for the
    purposes set forth in subsections (b), (c), and (d):
                ``(1) Sale of recyclable materials.
                ``(2) Sale of excess and surplus property.
                ``(3) License fees.
                ``(4) Royalties.

    [[Page 111 STAT. 1708]]

                ``(5) Fees paid by sources of products in order to obtain
            favorable display of the products for resale, known as business
            related management fees.''.

        (b) Clerical Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Adjustment or
            Surcharge Authorized.--'' after ``(a)'';
                (2) in subsection (b), by inserting ``Use for Construction
            and Improvement of Facilities.--'' after ``(b)'';
                (3) in subsection (c), by inserting ``Advance Obliga-
            tion.--'' after ``(c)''; and
                (4) in subsection (d), by inserting ``Cooperation With
            Nonappropriated Fund Instrumentalities.--'' after ``(d)''.

    SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES RECREATION
                CENTER, EUROPE.

        Section 2247(b) of title 10, United States Code, is amended by
    striking out ``real property maintenance, and'' and inserting in lieu
    thereof ``the maintenance, repair, or renovation of real property, and
    the''.

    SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT
                MORALE, WELFARE, AND RECREATION ACTIVITIES.

        (a) Plan Required.--The Secretary of Defense shall prepare a plan
    containing a proposal regarding the advisability and feasibility of
    permitting nonappropriated fund instrumentalities of the Department of
    Defense to enter into leases, licensing agreements, concession
    agreements, and other contracts with private persons and State or local
    governments to facilitate the provision of facilities, goods, or
    services to authorized patrons of nonappropriated fund instrumentalities
    and to generate revenues for the Department of Defense to be used solely
    for the benefit of nonappropriated fund instrumentalities.
        (b) Recommendations for Scope of Plan.--In developing the proposal
    under subsection (a), the Secretary shall include recommendations
    regarding the following:
                (1) The proposed criteria to be used to select goods or
            services suitable for provision to patrons of nonappropriated
            fund instrumentalities through a lease or other contractual
            arrangement.
                (2) The proposed mechanism to be used to assess the likely
            impact of such a lease or other contractual arrangement on
            private businesses in the locality that provide the same goods
            or services proposed to be provided under such a lease or other
            contractual arrangement.
                (3) The feasibility and desirability of authorizing persons
            who are not authorized patrons of nonappropriated fund
            instrumentalities to receive goods and services provided through
            such a lease or other contractual arrangement.
                (4) The proposed mechanism to be used to ensure that such a
            lease or contract will not be inconsistent with and will not
            adversely affect the mission of the Department of Defense or the
            nonappropriated fund instrumentality involved.

        (c) Submission of Plan.--Not later than March 1, 1998, the Secretary
    shall submit to Congress the plan required under subsection (a).

    [[Page 111 STAT. 1709]]

                            Subtitle F--Other Matters

    SEC. 381. 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
    1998.--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 for providing educational
            agencies assistance (as defined in subsection (d)(1)) to local
            educational agencies; and
                (2) $5,000,000 shall be available for making educational
            agencies payments (as defined in subsection (d)(2)) to local
            educational agencies.

        (b) Notification.--Not later than June 30, 1998, the Secretary of
    Defense shall--
                (1) notify each local educational agency that is eligible
            for educational agencies assistance for fiscal year 1998 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 1998 of that
            agency's eligibility for such payment and the amount of the
            payment for which that agency is eligible.

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

        (e) Technical Correction Relating to Original Assistance
    Authority.--Section 386(c)(1) of the National Defense Authorization Act
    for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note) is
    amended--
                (1) by striking out ``section 8003(a)'' and inserting in
            lieu thereof ``section 8003(a)(1)''; and
                (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting in
            lieu thereof ``(20 U.S.C. 7703(a)(1))''.

    SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN
                ASSISTANCE.

        (a) Establishment and Operation of Center.--(1) Chapter 7 of title
    10, United States Code, is amended by adding at the end the following
    new section:

    [[Page 111 STAT. 1710]]

    ``Sec. 182. Center for Excellence in Disaster Management and
                            Humanitarian Assistance

        ``(a) Establishment.--The Secretary of Defense may operate a Center
    for Excellence in Disaster Management and Humanitarian Assistance (in
    this section referred to as the `Center').
        ``(b) Missions.--(1) The Center shall be used to provide and
    facilitate education, training, and research in civil-military
    operations, particularly operations that require international disaster
    management and humanitarian assistance and operations that require
    coordination between the Department of Defense and other agencies.
        ``(2) The Center shall be used to make available high-quality
    disaster management and humanitarian assistance in response to
    disasters.
        ``(3) The Center shall be used to provide and facilitate education,
    training, interagency coordination, and research on the following
    additional matters:
                ``(A) Management of the consequences of nuclear, biological,
            and chemical events.
                ``(B) Management of the consequences of terrorism.
                ``(C) Appropriate roles for the reserve components in the
            management of such consequences and in disaster management and
            humanitarian assistance in response to natural disasters.
                ``(D) Meeting requirements for information in connection
            with regional and global disasters, including the use of
            advanced communications technology as a virtual library.
                ``(E) Tropical medicine, particularly in relation to the
            medical readiness requirements of the Department of Defense.

        ``(4) The Center shall develop a repository of disaster risk
    indicators for the Asia-Pacific region.
        ``(5) The Center shall perform such other missions as the Secretary
    of Defense may specify.
        ``(c) Joint Operation With Educational Institution Authorized.--The
    Secretary of Defense may enter into an agreement with appropriate
    officials of an institution of higher education to provide for joint
    operation of the Center. Any such agreement shall provide for the
    institution to furnish necessary administrative services for the Center,
    including administration and allocation of funds.
        ``(d) Acceptance of Donations.--(1) Except as provided in paragraph
    (2), the Secretary of Defense may accept, on behalf of the Center,
    donations to be used to defray the costs of the Center or to enhance the
    operation of the Center. Such donations may be accepted from any agency
    of the Federal Government, any State or local government, any foreign
    government, any foundation or other charitable organization (including
    any that is organized or operates under the laws of a foreign country),
    or any other private source in the United States or a foreign country.
        ``(2) The Secretary may not accept a donation under paragraph (1) if
    the acceptance of the donation would compromise or appear to
    compromise--
                ``(A) the ability of the Department of Defense, any employee
            of the Department, or members of the armed forces, to carry out
            any responsibility or duty of the Department in a fair and
            objective manner; or
                ``(B) the integrity of any program of the Department of
            Defense or of any person involved in such a program.

    [[Page 111 STAT. 1711]]

        ``(3) The Secretary shall prescribe written guidance setting forth
    the criteria to be used in determining whether or not the acceptance of
    a foreign donation would have a result described in paragraph (2).
        ``(4) Funds accepted by the Secretary under paragraph (1) as a
    donation on behalf of the Center shall be credited to appropriations
    available to the Department of Defense for the Center. Funds so credited
    shall be merged with the appropriations to which credited and shall be
    available for the Center for the same purposes and the same period as
    the appropriations with which merged.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``182. Center for Excellence in Disaster Management and Humanitarian
               Assistance.''.

        (b) Funding for Fiscal Year 1998.--Of the funds authorized to be
    appropriated pursuant to section 301(5) for operation and maintenance
    for Defense-wide activities, $5,000,000 shall be available for the
    operation of the Center for Excellence in Disaster Management and
    Humanitarian Assistance established under section 182 of title 10,
    United States Code, as added by subsection (a).

    SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE
                AUTOMATED PRINTING SERVICE.

        (a) In General.--Subchapter I of chapter 8 of title 10, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 195. Defense Automated Printing Service: applicability of Federal
                            printing requirements

        ``The Defense Automated Printing Service shall comply fully with the
    requirements of section 501 of title 44 relating to the production and
    procurement of printing, binding, and blank-book work.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``195. Defense Automated Printing Service: applicability of Federal
               printing requirements.''.

    SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF
                COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR
                PERFORMANCE.

        (a) Additional Notification Requirement.--Subsection (a)(1) of
    section 2461 of title 10, United States Code, is amended by inserting
    before the semicolon the following: ``and the anticipated length and
    cost of the study''.
        (b) Notification of Conversion Decision.--Subsection (b) of such
    section is amended by adding at the end the following new sentence:
    ``The notification shall include the timetable for completing conversion
    of the function to contractor performance.''.
        (c) Waiver for Small Functions.--Subsection (d) of such section is
    amended by striking out ``45 or fewer'' and inserting in lieu thereof
    ``20 or fewer''.

    [[Page 111 STAT. 1712]]

    SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON CONVERTED
                SERVICES AND FUNCTIONS.

        (a) Collection and Retention Required.--Section 2463 of title 10,
    United States Code, is amended to read as follows:

    ``Sec. 2463. Collection and retention of cost information data on
                            converted services and functions

        ``(a) Requirements in Connection With Conversion to Contractor
    Performance.--With respect to each contract converting the performance
    of a service or function of the Department of Defense to contractor
    performance (and any extension of such a contract), the Secretary of
    Defense shall collect, during the term of the contract or extension, but
    not to exceed five years, cost information data regarding performance of
    the service or function by private contractor employees.
        ``(b) Requirements in Connection With Return to Employee
    Performance.--Whenever the performance of a commercial or industrial
    type activity of the Department of Defense that is being performed by 50
    or more employees of a private contractor is changed to performance by
    civilian employees of the Department of Defense, the Secretary of
    Defense shall collect, for a five-year period, cost information data
    comparing--
                ``(1) the estimated costs of continued performance of such
            activity by private contractor employees; and
                ``(2) the costs of performance of such activity by civilian
            employees of the Department of Defense.

        ``(c) Retention of Information.--With regard to the conversion to or
    from contractor performance of a particular service or function of the
    Department of Defense, the Secretary of Defense shall provide for the
    retention of information collected under this section for at least a 10-
    year period beginning at the end of the final year in which the
    information is collected.''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 146 of title 10, United
    States Code, is amended to read as follows:

    ``2463. Collection and retention of cost information data on converted
               services and functions.''.

    SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO
                ARMY NATIONAL GUARD.

        (a) Authority.--Chapter 1 of title 32, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 113. Federal financial assistance for support of additional
                            duties assigned to the Army National Guard

        ``(a) Authority.--The Secretary of the Army may provide financial
    assistance to a State to support activities carried out by the Army
    National Guard of the State in the performance of duties that the
    Secretary has assigned, with the consent of the Chief of the National
    Guard Bureau, to the Army National Guard of the State. The Secretary
    shall determine the amount of the assistance that is appropriate for the
    purpose.
        ``(b) Covered Activities.--Activities supported under this section
    may include only those activities that are carried out by the Army
    National Guard in the performance of responsibilities of the Secretary
    of the Army under paragraphs (6), (10), and (11) of section 3013(b) of
    title 10.

    [[Page 111 STAT. 1713]]

        ``(c) Disbursement Through National Guard Bureau.--The Secretary of
    the Army shall disburse any contribution under this section through the
    Chief of the National Guard Bureau.
        ``(d) Availability of Funds.--Funds appropriated for the Army for a
    fiscal year are available for providing financial assistance under this
    section in support of activities carried out by the Army National Guard
    during that fiscal year.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``113. Federal financial assistance for support of additional duties
               assigned to the Army National Guard.''.

    SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

        (a) Extension of Requirement To Use Private-Sector Sources.--
    Subsection (a) of section 351 of the National Defense Authorization Act
    for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended--
                (1) by striking out ``and 1997'' and inserting in lieu
            thereof ``through 1998''; and
                (2) by striking out ``Defense Printing Service'' and
            inserting in lieu thereof ``Defense Automated Printing
            Service''.

        (b) Surcharge for Services.--Such section is further amended by
    adding at the end the following new subsection:
        ``(d) Conditions on Imposition of Surcharge.--(1) Any surcharge
    imposed by the Defense Automated Printing Service on printing and
    duplication services for the Department of Defense shall be based on
    direct services provided by the Defense Automated Printing Service and
    reflect the costs incurred by the Defense Automated Printing Service, as
    described in its annual budget.
        ``(2) The Defense Automated Printing Service may not impose a
    surcharge on any printing and duplication service for the Department of
    Defense that is procured from a source outside of the Department.''.
    <<NOTE: 10 USC 195 note.>>     (c) Authority To Procure Services From
    Government Printing Office.--Consistent with section 501 of title 44,
    United States Code, the Secretary of a military department or head of a
    Defense Agency may contract directly with the Government Printing Office
    for printing and duplication services otherwise available through the
    Defense Automated Printing Service.

    SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO
                IDENTIFY OVERPAYMENTS MADE TO VENDORS.

        (a) Scope of Program.--Section 354 of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    268; 10 U.S.C. 2461 note) is amended--
                (1) in subsection (a), by striking out the second sentence;
            and
                (2) in subsection (b)(1), by striking out ``of the Defense
            Logistics Agency that relate to (at least) fiscal years 1993,
            1994, and 1995'' and inserting in lieu thereof ``relating to
            fiscal years after fiscal year 1993 of the working-capital funds
            and industrial, commercial, and support type activities managed
            through the Defense Business Operations Fund, except the Defense
            Logistics Agency to the extent such records have already been
            audited''.

    [[Page 111 STAT. 1714]]

        (b) Collection Method; Contractor Payments.--Such section is further
    amended by striking out subsections (d) and (e) and inserting in lieu
    thereof the following new subsections:
        ``(d) Collection Method.--(1) In the case of an overpayment to a
    vendor identified under the demonstration program, the Secretary shall
    consider the use of the procedures specified in section 32.611 of the
    Federal Acquisition Regulation, regarding a setoff against existing
    invoices for payment to the vendor, as the first method by which the
    Department seeks to recover the amount of the overpayment (and any
    applicable interest and penalties) from the vendor.
        ``(2) The Secretary of Defense shall be solely responsible for
    notifying a vendor of an overpayment made to the vendor and identified
    under the demonstration program and for recovering the amount of the
    overpayment (and any applicable interest and penalties) from the vendor.
        ``(e) Fees for Contractor.--The Secretary shall pay to the
    contractor under the contract entered into under the demonstration
    program an amount not to exceed 25 percent of the total amount recovered
    by the Department (through the collection of overpayments and the use of
    setoffs) solely on the basis of information obtained as a result of the
    audits performed by the contractor under the program. When an
    overpayment is recovered through the use of a setoff, amounts for the
    required payment to the contractor shall be derived from funds available
    to the working-capital fund or industrial, commercial, or support type
    activity for which the overpayment is recovered.''.
    <<NOTE: 10 USC 2461 note.>>     (c) GAO Review.--Not later than December
    31, 1998, the Comptroller General shall submit to Congress a report
    containing the results of a review by the Comptroller General of the
    demonstration program conducted under section 354 of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10
    U.S.C. 2461 note). In the review, the Comptroller General shall--
                (1) assess the success of the methods used in the
            demonstration program to identify overpayments made to vendors;
                (2) consider the types of overpayments identified and the
            feasibility of avoiding such overpayments through contract
            adjustments;
                (3) determine the total amount of overpayments recovered
            under the demonstration program; and
                (4) develop recommendations for improving the process by
            which overpayments are recovered by the Department of Defense.

    <<NOTE: 10 USC 2461 note.>> SEC. 389. DEVELOPMENT OF STANDARD FORMS
                REGARDING PERFORMANCE WORK STATEMENT AND REQUEST FOR
                PROPOSAL FOR CONVERSION OF CERTAIN OPERATIONAL FUNCTIONS OF
                MILITARY INSTALLATIONS.

        (a) Standardization of Requirements.--The Secretary of Defense is
    authorized and encouraged to develop standard forms (to be known as a
    ``standard performance work statement'' and a ``standard request for
    proposal'') for use in the consideration for conversion to contractor
    performance of commercial services and functions at military
    installations. A separate standard form shall be developed for each
    service and function.
        (b) Relationship to OMB Requirements.--A standard performance work
    statement or a standard request for proposal

    [[Page 111 STAT. 1715]]

    developed under subsection (a) must fulfill the basic requirements of
    the performance work statement or request for proposal otherwise
    required under the procedures and requirements of Office of Management
    and Budget Circular A-76 (or any successor administrative regulation or
    policy) in effect at the time the standard form will be used.
        (c) Priority Development of Certain Forms.--In developing standard
    performance work statements and standard requests for proposal, the
    Secretary shall give first priority to those commercial services and
    functions that the Secretary determines have been successfully converted
    to contractor performance on a repeated basis.
        (d) Incentive for Use.--Beginning not later than October 1, 1998, if
    a standard performance work statement or a standard request for proposal
    is developed under subsection (a) for a particular service and function,
    the standard form may be used in lieu of the performance work statement
    or request for proposal otherwise required under the procedures and
    requirements of Office of Management and Budget Circular A-76 in
    connection with the consideration for conversion to contractor
    performance of that service or function at a military installation.
        (e) Exclusion of Multifunction Conversion.--If a commercial service
    or function for which a standard form is developed under subsection (a)
    is combined with another service or function (for which such a form has
    not yet been developed) for purposes of considering the services and
    functions at the military installation for conversion to contractor
    performance, a standard performance work statement or a standard request
    for a proposal developed under subsection (a) may not be used in the
    conversion process in lieu of the procedures and requirements of Office
    of Management and Budget Circular A-76.
        (f) Effect on Other Laws.--Nothing in this section shall be
    construed to supersede any other requirements or limitations,
    specifically contained in chapter 146 of title 10, United States Code,
    on the conversion to contractor performance of activities performed by
    civilian employees of the Department of Defense.
        (g) GAO Report.--Not later than June 1, 1999, the Secretary of
    Defense shall submit to Congress a report reviewing the implementation
    of this section.
        (h) Military Installation Defined.--For purposes of this section,
    the term ``military installation'' means a base, camp, post, station,
    yard, center, homeport facility for any ship, or other activity under
    the jurisdiction of the Department of Defense, including any leased
    facility.

    SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

        (a) Contractor Use of Nonimmigrant Aliens.--Each contract for base
    operations support to be performed on Guam shall contain a condition
    that work under the contract may not be performed by any alien who is
    issued a visa or otherwise provided nonimmigrant status under section
    101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C.
    1101(a)(15)(H)(ii)).
        (b) Application of Section.--This section shall apply to contracts
    entered into, amended, or otherwise modified on or after the date of the
    enactment of this Act.

    [[Page 111 STAT. 1716]]

    <<NOTE: 10 USC 2304 note.>> SEC. 391. WARRANTY CLAIMS RECOVERY PILOT
                PROGRAM.

        (a) Pilot Program Required.--The Secretary of Defense may carry out
    a pilot program to use commercial sources of services to improve the
    collection of Department of Defense claims under aircraft engine
    warranties.
        (b) Contracts.--Exercising the authority provided in section 3718 of
    title 31, United States Code, the Secretary of Defense may enter into
    contracts under the pilot program to provide for the following services:
                (1) Collection services.
                (2) Determination of amounts owed the Department of Defense
            for repair of aircraft engines for conditions covered by
            warranties.
                (3) Identification and location of the sources of
            information that are relevant to collection of Department of
            Defense claims under aircraft engine warranties, including
            electronic data bases and document filing systems maintained by
            the Department of Defense or by the manufacturers and suppliers
            of the aircraft engines.
                (4) Services to define the elements necessary for an
            effective training program to enhance and improve the
            performance of Department of Defense personnel in collecting and
            organizing documents and other information that are necessary
            for efficient filing, processing, and collection of Department
            of Defense claims under aircraft engine warranties.

        (c) Contractor Fee.--Under the authority provided in section 3718(d)
    of title 31, United States Code, a contract entered into under the pilot
    program shall provide for the contractor to be paid, out of the amount
    recovered by the contractor under the program, such percentages of the
    amount recovered as the Secretary of Defense determines appropriate.
        (d) Retention of Recovered Funds.--Subject to any obligation to pay
    a fee under subsection (c), any amount collected for the Department of
    Defense under the pilot program for a repair of an aircraft engine for a
    condition covered by a warranty shall be credited to an appropriation
    available for repair of aircraft engines for the fiscal year in which
    collected and shall be available for the same purposes and same period
    as the appropriation to which credited.
        (e) Regulations.--The Secretary of Defense shall prescribe
    regulations to carry out this section.
        (f) Termination of Authority.--The pilot program shall terminate on
    September 30, 1999, and contracts entered into under this section shall
    terminate not later than that date.
        (g) Reporting Requirements.--(1) Not later than January 1, 2000, the
    Secretary of Defense shall submit to Congress a report on the pilot
    program. The report shall include the following:
                (A) The number of contracts entered into under the program.
                (B) The extent to which the services provided under the
            contracts resulted in financial benefits for the Federal
            Government.
                (C) Any additional comments and recommendations that the
            Secretary considers appropriate regarding use of commercial
            sources of services for collection of Department of Defense
            claims under aircraft engine warranties.

    [[Page 111 STAT. 1717]]

        (2) Not later than March 1, 2000, the Comptroller General shall
    submit to Congress a report containing the results of a review by the
    Comptroller General of the pilot program. In the review, the Comptroller
    General shall--
                (A) assess the success of the methods used in the
            demonstration program to identify and recover Department of
            Defense claims under aircraft engine warranties;
                (B) determine the total amount recovered by the Department
            of Defense under the pilot program;
                (C) evaluate the report prepared by the Secretary under
            paragraph (1); and
                (D) develop recommendations for improving the process by
            which warranty claims are recovered by the Department of
            Defense.

    <<NOTE: 10 USC 113 note.>> SEC. 392. PROGRAM TO INVESTIGATE FRAUD,
                WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.

        The Secretary of Defense shall maintain a specific coordinated
    program for the investigation of evidence of fraud, waste, and abuse
    within the Department of Defense, particularly fraud, waste, and abuse
    regarding finance and accounting matters.

    SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.

        (a) Program Required.--The Secretary of the Navy shall carry out a
    program to demonstrate expanded use of multitechnology automated reader
    cards throughout the Navy and the Marine Corps. The demonstration
    program shall include demonstration of the use of the so-called
    ``smartship'' technology of the ship-to-shore work load/off load program
    of the Navy.
        (b) Period of Program.--The Secretary shall carry out the
    demonstration program for two years beginning not later than January 1,
    1998.
        (c) Report.--Not later than 90 days after termination of the
    demonstration program, the Secretary shall submit to Congress a report
    on the results of the program.
        (d) Funding.--Of the amount authorized to be appropriated pursuant
    to section 301(2) for operation and maintenance for the Navy,
    $36,000,000 shall be available for the demonstration program under this
    section, of which $6,300,000 shall be available for demonstration of the
    use of the so-called ``smartship'' technology of the ship-to-shore work
    load/off load program of the Navy.

    SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

        (a) Report and Plan Required.--Not later than March 1, 1998, the
    Secretary of Defense shall submit to Congress a report containing a plan
    to reduce overhead costs of the supply management activities of the
    Defense Logistics Agency and the military departments (known as
    Inventory Control Points) so that the overhead costs for each fiscal
    year after fiscal year 2000 do not exceed eight percent of net sales at
    standard price by Inventory Control Points during that year.
        (b) Additional Report Requirement.--In addition to the plan, the
    report shall include the following:
                (1) An identification of inherently governmental, core and
            noncore functions in Inventory Control Points and Distribution
            Depots.

    [[Page 111 STAT. 1718]]

                (2) A description of efforts, other than prime vendor and
            virtual prime vendor, underway or proposed to improve the
            efficiency, incentives, and accountability in Department of
            Defense supply, inventory and warehousing services and rates.
                (3) An identification and description of the benchmarks
            established in the warehousing, distribution, and supply
            functions of the Department and the relationship of the
            benchmarks to performance measurement methods used in the
            private sector.
                (4) A description of the outcome-oriented performance
            measures that are currently being used to evaluate Inventory
            Control Points and Distribution Depots.
                (5) A specification of any legislative, regulatory, or
            operational impediments to achieving the requirement in
            subsection (a) and implementing best business practices in the
            warehousing, distribution, and supply functions of the
            Department.

        (c) Definitions.--For purposes of this section:
                (1) The term ``overhead costs'' means the total expenses of
            the Inventory Control Points, excluding--
                        (A) annual materiel costs; and
                        (B) military and civilian personnel related costs,
                    defined as personnel compensation and benefits under the
                    March 1996 Department of Defense Financial Management
                    Regulations, Volume 2A, Chapter 1, Budget Account Title
                    File (Object Classification Name/Code), object
                    classifications 200, 211, 220, 221, 222, and 301.
                (2) The term ``net sales at standard price'' has the meaning
            given that term in the March 1996 Department of Defense
            Financial Management Regulations, Volume 2B, Chapter 9, and
            displayed in ``Exhibit Fund--14 Revenue and Expenses'' for the
            supply management business areas.

    <<NOTE: 10 USC 2458 note.>> SEC. 395. INVENTORY MANAGEMENT.

        (a) Development and Submission of Schedule.--Not later than 180 days
    after the date of the enactment of this Act, the Director of the Defense
    Logistics Agency shall develop and submit to Congress a schedule for
    implementing within the agency, for the supplies and equipment described
    in subsection (b), inventory practices identified by the Director as
    being the best commercial inventory practices for the acquisition and
    distribution of such supplies and equipment consistent with military
    requirements. The schedule shall provide for the implementation of such
    practices to be completed not later than three years after the date of
    the enactment of this Act.
        (b) Covered Supplies and Equipment.--Subsection (a) shall apply to
    the following types of supplies and equipment for the Department of
    Defense:
                (1) Medical and pharmaceutical.
                (2) Subsistence.
                (3) Clothing and textiles.
                (4) Commercially available electronics.
                (5) Construction.
                (6) Industrial.
                (7) Automotive.
                (8) Fuel.
                (9) Facilities maintenance.

    [[Page 111 STAT. 1719]]

        (c) Definition.--For purposes of this section, the term ``best
    commercial inventory practice'' includes a so-called prime vendor
    arrangement and any other practice that the Director determines will
    enable the Defense Logistics Agency to reduce inventory levels and
    holding costs while improving the responsiveness of the supply system to
    user needs.
        (d) Report on Expansion of Covered Supplies and Equipment.--Not
    later than March 1, 1998, the Comptroller General shall submit to
    Congress a report evaluating the feasibility of expanding the list of
    covered supplies and equipment under subsection (b) to include
    repairable items.

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Permanent end strength levels to support two major regional
               contingencies.

                           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).

                   Subtitle C--Authorization of Appropriations

    Sec. 421. Authorization of appropriations for military personnel.

                            Subtitle A--Active Forces

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

        The Armed Forces are authorized strengths for active duty personnel
    as of September 30, 1998, as follows:
                (1) The Army, 495,000.
                (2) The Navy, 390,802.
                (3) The Marine Corps, 174,000.
                (4) The Air Force, 371,577.

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

        (a) Change in Permanent End Strengths.--Subsection (b) of section
    691 of title 10, United States Code, is amended--
                (1) in paragraph (2), by striking out ``395,000'' and
            inserting in lieu thereof ``390,802''; and
                (2) in paragraph (4), by striking out ``381,000'' and
            inserting in lieu thereof ``371,577''.

        (b) Increased Flexibility for the Army.--Subsection (e) of such
    section is amended by inserting ``or, in the case of the Army, by not
    more than 1.5 percent'' before the period at the end.

                           Subtitle B--Reserve Forces

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

        (a) In General.--The Armed Forces are authorized strengths for
    Selected Reserve personnel of the reserve components as of September 30,
    1998, as follows:

    [[Page 111 STAT. 1720]]

                (1) The Army National Guard of the United States, 361,516.
                (2) The Army Reserve, 208,000.
                (3) The Naval Reserve, 94,294.
                (4) The Marine Corps Reserve, 42,000.
                (5) The Air National Guard of the United States, 108,002.
                (6) The Air Force Reserve, 73,447.
                (7) The Coast Guard Reserve, 8,000.

        (b) 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, 1998,
    the following number of Reserves to be serving on full-time active duty
    or full-time duty, in the case of members of the National Guard, for the
    purpose of organizing, administering, recruiting, instructing, or
    training the reserve components:
                (1) The Army National Guard of the United States, 22,310.
                (2) The Army Reserve, 11,500.
                (3) The Naval Reserve, 16,136.
                (4) The Marine Corps Reserve, 2,559.
                (5) The Air National Guard of the United States, 10,671.
                (6) The Air Force Reserve, 867.

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

        (a) Authorization for <<NOTE: 10 USC 115 note.>>  Fiscal Year
    1998.--The minimum number of military technicians (dual status) as of
    the last day of fiscal year 1998 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, 5,503.
                (2) For the Army National Guard of the United States,
            23,125.
                (3) For the Air Force Reserve, 9,802.
                (4) For the Air National Guard of the United States, 22,853.

        (b) Requests for Future Fiscal Years.--Section 115(g) of title 10,
    United States Code, is amended by adding at the end the following new
    sentence: ``In each budget submitted by the President to Congress under
    section 1105 of title 31, the end strength requested for military
    technicians (dual status) for each

    [[Page 111 STAT. 1721]]

    reserve component of the Army and Air Force shall be specifically set
    forth.''.

                   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 1998 a total of
    $69,470,505,000. The authorization in the preceding sentence supersedes
    any other authorization of appropriations (definite or indefinite) for
    such purpose for fiscal year 1998.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    Sec. 501. Limitation on number of general and flag officers who may
               serve in
               positions outside their own service.
    Sec. 502. Exclusion of certain retired officers from limitation on
               period of recall to active duty.
    Sec. 503. Clarification of officers eligible for consideration by
               promotion boards.
    Sec. 504. Authority to defer mandatory retirement for age of officers
               serving as chaplains.
    Sec. 505. Increase in number of officers allowed to be frocked to grades
               of colonel and Navy captain.
    Sec. 506. Increased years of commissioned service for mandatory
               retirement of
               regular generals and admirals in grades above major general
               and rear admiral.
    Sec. 507. Uniform policy for requirement of exemplary conduct by
               commanding
               officers and others in authority.
    Sec. 508. Report on the command selection process for District Engineers
               of the Army Corps of Engineers.

                      Subtitle B--Reserve Component Matters

    Sec. 511. Individual Ready Reserve activation authority.
    Sec. 512. Termination of Mobilization Income Insurance Program.
    Sec. 513. Correction of inequities in medical and dental care and death
               and disability benefits for reserve members who incur or
               aggravate an illness in the line of duty.
    Sec. 514. Authority to permit non-unit assigned officers to be
               considered by vacancy promotion board to general officer
               grades.
    Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air
               Force base security functions.
    Sec. 516. Involuntary separation of reserve officers in an inactive
               status.
    Sec. 517. Federal status of service by National Guard members as honor
               guards at funerals of veterans.

                        Subtitle C--Military Technicians

    Sec. 521. Authority to retain on the reserve active-status list until
               age 60 military technicians in the grade of brigadier
               general.
    Sec. 522. Military technicians (dual status).
    Sec. 523. Non-dual status military technicians.
    Sec. 524. Report on feasibility and desirability of conversion of AGR
               personnel to military technicians (dual status).

       Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
                                    Attrition

    Sec. 531. Reform of military recruiting systems.
    Sec. 532. Improvements in medical prescreening of applicants for
               military service.
    Sec. 533. Improvements in physical fitness of recruits.

    [[Page 111 STAT. 1722]]

                   Subtitle E--Military Education and Training

                       Part I--Officer Education Programs

    Sec. 541. Requirement for candidates for admission to United States
               Naval
               Academy to take oath of allegiance.
    Sec. 542. Service academy foreign exchange program.
    Sec. 543. Reimbursement of expenses incurred for instruction at service
               academies of persons from foreign countries.
    Sec. 544. Continuation of support to senior military colleges.
    Sec. 545. Report on making United States nationals eligible for
               participation in Senior Reserve Officers' Training Corps.
    Sec. 546. Coordination of establishment and maintenance of Junior
               Reserve
               Officers' Training Corps units to maximize enrollment and
               enhance
               efficiency.

                        Part II--Other Education Matters

    Sec. 551. United States Naval Postgraduate School.
    Sec. 552. Community College of the Air Force.
    Sec. 553. Preservation of entitlement to educational assistance of
               members of the Selected Reserve serving on active duty in
               support of a contingency
               operation.

                   Part III--Training of Army Drill Sergeants

    Sec. 556. Reform of Army drill sergeant selection and training process.
    Sec. 557. Training in human relations matters for Army drill sergeant
               trainees.

      Subtitle F--Commission on Military Training and Gender-Related Issues

    Sec. 561. Establishment and composition of Commission.
    Sec. 562. Duties.
    Sec. 563. Administrative matters.
    Sec. 564. Termination of Commission.
    Sec. 565. Funding.
    Sec. 566. Subsequent consideration by Congress.

                   Subtitle G--Military Decorations and Awards

    Sec. 571. Purple Heart to be awarded only to members of the Armed
               Forces.
    Sec. 572. Eligibility for Armed Forces Expeditionary Medal for
               participation in
               Operation Joint Endeavor or Operation Joint Guard.
    Sec. 573. Waiver of time limitations for award of certain decorations to
               specified persons.
    Sec. 574. Clarification of eligibility of members of Ready Reserve for
               award of
               service medal for heroism.
    Sec. 575. One-year extension of period for receipt of recommendations
               for decorations and awards for certain military intelligence
               personnel.
    Sec. 576. Eligibility of certain World War II military organizations for
               award of unit decorations.
    Sec. 577. Retroactivity of Medal of Honor special pension.

                      Subtitle H--Military Justice Matters

    Sec. 581. Establishment of sentence of confinement for life without
               eligibility for parole.
    Sec. 582. Limitation on appeal of denial of parole for offenders serving
               life
               sentence.

                            Subtitle I--Other Matters

    Sec. 591. Sexual harassment investigations and reports.
    Sec. 592. Sense of the Senate regarding study of matters relating to
               gender equity in the Armed Forces.
    Sec. 593. Authority for personnel to participate in management of
               certain non-
               Federal entities.
    Sec. 594. Treatment of participation of members in Department of Defense
               civil military programs.
    Sec. 595. Comptroller General study of Department of Defense civil
               military
               programs.
    Sec. 596. Establishment of public affairs specialty in the Army.
    Sec. 597. Grade of defense attache in France.
    Sec. 598. Report on crew requirements of WC-130J aircraft.
    Sec. 599. Improvement of missing persons authorities applicable to
               Department of Defense.

    [[Page 111 STAT. 1723]]

                      Subtitle A--Officer Personnel Policy

    SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY
                SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.

        (a) In General.--Chapter 41 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 721. General and flag officers: limitation on appointments,
                            assignments, details, and duties outside an
                            officer's own service

        ``(a) Limitation.--An officer described in subsection (b) may not be
    appointed, assigned, or detailed for a period in excess of 180 days to a
    position external to that officer's armed force if, immediately
    following such appointment, assignment, or detail, the number of
    officers described in subsection (b) serving in positions external to
    such officers' armed force would be in excess of 26.5 percent of the
    total number of the officers described in subsection (b).
        ``(b) Covered Officers.--The officers covered by subsection (a), and
    to be counted for the purposes of the limitation in that subsection, are
    the following:
                ``(1) Any general or flag officer counted for purposes of
            section 526(a) of this title.
                ``(2) Any general or flag officer serving in a joint duty
            assignment position designated by the Chairman of the Joint
            Chiefs of Staff under section 526(b) of this title.
                ``(3) Any colonel or Navy captain counted for purposes of
            section 777(d)(1) of this title.

        ``(c) External Positions.--For purposes of this section, the
    following positions shall be considered to be external to an officer's
    armed force:
                ``(1) Any position (including a position in joint education)
            that is a joint duty assignment for purposes of chapter 38 of
            this title.
                ``(2) Any position in the Office of the Secretary of
            Defense, a Defense Agency, or a Department of Defense Field
            Activity.
                ``(3) Any position in the Joint Chiefs of Staff, the Joint
            Staff, or the headquarters of a combatant command (as defined in
            chapter 6 of this title).
                ``(4) Any position in the National Guard Bureau.
                ``(5) Any position outside the Department of Defense,
            including any position in the headquarters of the North Atlantic
            Treaty Organization or any other international military command,
            any combined or multinational command, or military mission.

        ``(d) Treatment of Officers Holding Multiple Positions.--(1) If an
    officer described in subsection (b) simultaneously holds both a position
    external to that officer's armed force and another position not external
    to that officer's armed force, the Secretary of Defense shall determine
    whether that officer shall be counted for the purposes of this section.
        ``(2) The Secretary of <<NOTE: Reports.>>  Defense shall submit to
    Congress an annual report on the number of officers to whom paragraph
    (1) was applicable during the year covered by the report. The report

    [[Page 111 STAT. 1724]]

    shall set forth the determination made by the Secretary under that
    paragraph in each such case.

        ``(e) Assignments, Etc., for Periods in Excess of 180 Days.--For
    purposes of this section, the appointment, assignment, or detail of an
    officer to a position shall be considered to be for a period in excess
    of 180 days unless the appointment, assignment, or detail specifies that
    it is made for a period of 180 days or less.
        ``(f) Waiver <<NOTE: President.>>  During Period of War or National
    Emergency.--The President may suspend the operation of this section
    during any period of war or of national emergency declared by Congress
    or the President.''.

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

    ``721. General and flag officers: limitation on appointments,
               assignments, details, and duties outside an officer's own
               service.''.

    SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON
                PERIOD OF RECALL TO ACTIVE DUTY.

        Section 688(e) of title 10, United States Code, is amended--
                (1) by inserting ``(1)'' before ``A member''; and
                (2) by adding at the end the following:

        ``(2) Paragraph (1) does not apply to the following officers:
                ``(A) A chaplain who is assigned to duty as a chaplain for
            the period of active duty to which ordered.
                ``(B) A health care professional (as characterized by the
            Secretary concerned) who is assigned to duty as a health care
            professional for the period of active duty to which ordered.
                ``(C) An officer assigned to duty with the American Battle
            Monuments Commission for the period of active duty to which
            ordered.''.

    SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY
                PROMOTION BOARDS.

        (a) Officers on the Active-Duty List.--Section 619(d) of title 10,
    United States Code, is amended--
                (1) by striking out ``grade--'' in the matter preceding
            paragraph (1) and inserting in lieu thereof ``grade any of the
            following officers:'';
                (2) in paragraph (1)--
                        (A) by striking out ``an officer'' and inserting in
                    lieu thereof ``An officer''; and
                        (B) by striking out ``; or'' at the end and
                    inserting in lieu thereof a period;
                (3) by redesignating paragraph (2) as paragraph (3) and in
            that paragraph striking out ``an officer'' and inserting in lieu
            thereof ``An officer''; and
                (4) by inserting after paragraph (1) the following new
            paragraph (2):
                ``(2) An officer who is recommended for promotion to that
            grade in the report of an earlier selection board convened under
            that section, in the case of such a report that has not yet been
            approved by the President.''.

        (b) Officers on the Reserve Active-Status List.--Section 14301(c) of
    such title is amended--

    [[Page 111 STAT. 1725]]

                (1) by striking out ``grade--'' in the matter preceding
            paragraph (1) and inserting in lieu thereof ``grade any of the
            following officers:'';
                (2) by striking out ``an officer'' in each of paragraphs
            (1), (2), and (3) and inserting in lieu thereof ``An officer'';
                (3) by striking out the semicolon at the end of paragraph
            (1) and inserting in lieu thereof a period;
                (4) by striking out ``; or'' at the end of paragraph (2) and
            inserting in lieu thereof a period;
                (5) by redesignating paragraphs (2) and (3), as so amended,
            as paragraphs (3) and (4), respectively, and in each such
            paragraph striking out ``the next higher grade'' and inserting
            in lieu thereof ``that grade''; and
                (6) by inserting after paragraph (1) the following new
            paragraph (2):
                ``(2) An officer who is recommended for promotion to that
            grade in the report of an earlier selection board convened under
            a provision referred to in paragraph (1), in the case of such a
            report that has not yet been approved by the President.''.

        (c) Clarifying Amendments.--Paragraphs (3) and (4) of section
    14301(c) of such title, as redesignated and amended by subsection (b),
    are each amended by inserting before the period at the end the
    following: ``, if that nomination is pending before the Senate''.
        (d) Effective Date.--The <<NOTE: 10 USC 619 note.>>  amendments made
    by this section shall take effect on the date of the enactment of this
    Act and shall apply with respect to selection boards that are convened
    under section 611(a), 14101(a), or 14502 of title 10, United States
    Code, on or after that date.

    SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS
                SERVING AS CHAPLAINS.

        (a) Authority for Deferral of Retirement for Chaplains.--Subsection
    (c) of section 1251 of title 10, United States Code, is amended--
                (1) by redesignating paragraphs (2) and (3) as paragraphs
            (3) and (4), respectively; and
                (2) by inserting after paragraph (1) the following new
            paragraph (2):

        ``(2) The Secretary concerned may defer the retirement under
    subsection (a) of an officer who is appointed or designated as a
    chaplain if the Secretary determines that such deferral is in the best
    interest of the military department concerned.''.
        (b) Authority for Deferral of Retirement for Chief and Deputy Chief
    of Chaplains.--Such section is further amended by adding at the end the
    following new subsection:
        ``(d) The Secretary concerned may defer the retirement under
    subsection (a) of an officer who is the Chief of Chaplains or Deputy
    Chief of Chaplains of that officer's armed force. Such a deferment may
    not extend beyond the first day of the month following the month in
    which the officer becomes 68 years of age.''.
        (c) Qualification for Service as Navy Chief of Chaplains or Deputy
    Chief of Chaplains.--(1) Section 5142(b) of such title is amended by
    striking out ``, who are not on the retired list,''.
        (2) Section 5142a of such title is amended by striking ``, who is
    not on the retired list,''.

    [[Page 111 STAT. 1726]]

    SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO GRADES
                OF COLONEL AND NAVY CAPTAIN.

        Section 777(d)(2) of title 10, United States Code, is amended by
    inserting after ``1 percent'' the following: ``, or, for the grades of
    colonel and Navy captain, 2 percent,''.

    SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY
                RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES ABOVE
                MAJOR GENERAL AND REAR ADMIRAL.

        (a) Years of Service.--Section 636 of title 10, United States Code,
    is amended--
                (1) by striking out ``Except as provided'' and inserting in
            lieu thereof ``(a) Major Generals and Rear Admirals Serving in
            Grade.--Except as provided in subsection (b) or (c) and''; and
                (2) by adding at the end the following:

        ``(b) Lieutenant Generals and Vice Admirals.--In the administration
    of subsection (a) in the case of an officer who is serving in the grade
    of lieutenant general or vice admiral, the number of years of active
    commissioned service applicable to the officer is 38 years.
        ``(c) Generals and Admirals.--In the administration of subsection
    (a) in the case of an officer who is serving in the grade of general or
    admiral, the number of years of active commissioned service applicable
    to the officer is 40 years.''.
        (b) Section Heading.--The heading of such section is amended to read
    as follows:

    ``Sec. 636. Retirement for years of service: regular officers in grades
                            above brigadier general and rear admiral (lower
                            half)''.

        (c) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of subchapter III of chapter 36 of
    such title is amended to read as follows:

    ``636. Retirement for years of service: regular officers in grades above
               brigadier general and rear admiral (lower half).''.

    SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY
                COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

        (a) Army.--(1) Chapter 345 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 3583. Requirement of exemplary conduct

        ``All commanding officers and others in authority in the Army are
    required--
                ``(1) to show in themselves a good example of virtue, honor,
            patriotism, and subordination;
                ``(2) to be vigilant in inspecting the conduct of all
            persons who are placed under their command;
                ``(3) to guard against and suppress all dissolute and
            immoral practices, and to correct, according to the laws and
            regulations of the Army, all persons who are guilty of them; and
                ``(4) to take all necessary and proper measures, under the
            laws, regulations, and customs of the Army, to promote and

    [[Page 111 STAT. 1727]]

            safeguard the morale, the physical well-being, and the general
            welfare of the officers and enlisted persons under their command
            or charge.''.

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

    ``3583. Requirement of exemplary conduct.''.

        (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 8583. Requirement of exemplary conduct

        ``All commanding officers and others in authority in the Air Force
    are required--
                ``(1) to show in themselves a good example of virtue, honor,
            patriotism, and subordination;
                ``(2) to be vigilant in inspecting the conduct of all
            persons who are placed under their command;
                ``(3) to guard against and suppress all dissolute and
            immoral practices, and to correct, according to the laws and
            regulations of the Air Force, all persons who are guilty of
            them; and
                ``(4) to take all necessary and proper measures, under the
            laws, regulations, and customs of the Air Force, 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.''.

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

    ``8583. Requirement of exemplary conduct.''.

    SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT ENGINEERS
                OF THE ARMY CORPS OF ENGINEERS.

        Not later than March 31, 1998, the Secretary of the Army shall
    submit to Congress a report on the command selection process for
    officers serving as District Engineers of the Corps of Engineers. The
    report shall include the following:
                (1) An identification of each major Corps of Engineers
            project that--
                        (A) is being carried out by each District Engineer
                    as of the date of the report; or
                        (B) is being planned by each District Engineer to be
                    carried out during the five-year period beginning on the
                    date of the report.
                (2) The expected start and completion dates, during that
            period, for each major phase of each project identified under
            paragraph (1).
                (3) The expected dates for changes in the District Engineer
            in each Corps of Engineers District during that period.
                (4) A plan for optimizing the timing of changes in the
            District Engineer in each such District so that there is minimal
            disruption to major phases of major Corps of Engineers projects.
                (5) A review of the effect on the Corps of Engineers, and on
            the mission of each District of the Corps of Engineers, of
            allowing major command tours of District Engineers to be of two-
            to-four years in duration, with the selection of the exact
            timing of the change of command to be at the discretion of the
            Chief of Engineers, who shall act with the goal of optimizing

    [[Page 111 STAT. 1728]]

            the timing of each change so that it has minimal disruption on
            the mission of the District Engineer.

                      Subtitle B--Reserve Component Matters

    SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

        (a) IRR Members Subject to Order to Active Duty Other Than During
    War or National Emergency.--Section 10144 of title 10, United States
    Code, is amended--
                (1) by inserting ``(a)'' before ``Within the Ready
            Reserve''; and
                (2) by adding at the end the following new subsection:

        ``(b)(1) Within the Individual Ready Reserve of each reserve
    component there is a category of members, as designated by the Secretary
    concerned, who are subject to being ordered to active duty involuntarily
    in accordance with section 12304 of this title. A member may not be
    placed in that mobilization category unless--
                ``(A) the member volunteers for that category; and
                ``(B) the member is selected for that category by the
            Secretary concerned, based upon the needs of the service and the
            grade and military skills of that member.

        ``(2) A member of the Individual Ready Reserve may not be carried in
    such mobilization category of members after the end of the 24-month
    period beginning on the date of the separation of the member from active
    service.
        ``(3) The Secretary shall designate the grades and military skills
    or specialities of members to be eligible for placement in such
    mobilization category.
        ``(4) A member in such mobilization category shall be eligible for
    benefits (other than pay and training) as are normally available to
    members of the Selected Reserve, as determined by the Secretary of
    Defense.''.
        (b) Criteria for Ordering to Active Duty.--Subsection (a) of section
    12304 of title 10, United States Code, is amended by inserting after
    ``of this title),'' the following: ``or any member in the Individual
    Ready Reserve mobilization category and designated as essential under
    regulations prescribed by the Secretary concerned,''.
        (c) Maximum Number.--Subsection (c) of such section is
    amended--
                (1) by inserting ``and the Individual Ready Reserve'' after
            ``Selected Reserve''; and
                (2) by inserting ``, of whom not more than 30,000 may be
            members of the Individual Ready Reserve'' before the period at
            the end.

        (d) Conforming Amendments.--Such section is further
    amended--
                (1) in subsection (f), by inserting ``or Individual Ready
            Reserve'' after ``Selected Reserve'';
                (2) in subsection (g), by inserting ``, or any member of the
            Individual Ready Reserve,'' after ``to serve as a unit''; and
                (3) by adding at the end the following new subsection:

        ``(i) For purposes of this section, 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.''.

    [[Page 111 STAT. 1729]]

        (e) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 12304. Selected Reserve and certain Individual Ready Reserve
                            members; order to active duty other than during
                            war or national emergency''.

        (2) The item relating to section 12304 in the table of sections at
    the beginning of chapter 1209 of such title is amended to read as
    follows:

    ``12304. Selected Reserve and certain Individual Ready Reserve members;
               order to active duty other than during war or national
               emergency.''.

    SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

        (a) In General.--Chapter 1214 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 12533. Termination of program

        ``(a) In General.--The Secretary shall terminate the insurance
    program in accordance with this section.
        ``(b) Termination of New Enrollments.--The Secretary may not enroll
    a member of the Ready Reserve for coverage under the insurance program
    after the date of the enactment of this section.
        ``(c) Termination of Coverage.--(1) The enrollment under the
    insurance program of insured members other than insured members
    described in paragraph (2) is terminated as of the date of the enactment
    of this section. The enrollment of an insured member described in
    paragraph (2) is terminated as of the date of the termination of the
    period of covered service of that member described in that paragraph.
        ``(2) An insured member described in this paragraph is an insured
    member who on the date of the enactment of this section is serving on
    covered service for a period of service, or has been issued an order
    directing the performance of covered service, that satisfies or would
    satisfy the entitlement-to-benefits provisions of this chapter.
        ``(d) Termination of Payment of Benefits.--The Secretary may not
    make any benefit payment under the insurance program after the date of
    the enactment of this section other than to an insured member who on
    that date (1) is serving on an order to covered service, (2) has been
    issued an order directing performance of covered service, or (3) has
    served on covered service before that date for which benefits under the
    program have not been paid to the member.
        ``(e) Termination of Insurance Fund.--The Secretary shall close the
    Fund not later than 60 days after the date on which the last benefit
    payment from the Fund is made. Any amount remaining in the Fund when
    closed shall be covered into the Treasury as miscellaneous receipts.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``12533. Termination of program.''.

    [[Page 111 STAT. 1730]]

    SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH
                AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR
                AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.

        (a) Medical and Dental Care for Members.--Section 1074a of title 10,
    United States Code, is amended--
                (1) in subsection (a)(3), by inserting ``while remaining
            overnight immediately before the commencement of inactive-duty
            training, or'' after ``in the line of duty''; and
                (2) by adding at the end the following new subsection:

        ``(e) A member of a uniformed service described in paragraph (1)(A)
    or (2)(A) of subsection (a) whose orders are modified or extended, while
    the member is being treated for (or recovering from) the injury,
    illness, or disease incurred or aggravated in the line of duty, so as to
    result in active duty for a period of more than 30 days shall be
    entitled, while the member remains on active duty, to medical and dental
    care on the same basis and to the same extent as members covered by
    section 1074(a) of this title.''.
        (b) Medical and Dental Care for Dependents.--Section 1076(a) of such
    title is amended by striking out paragraph (2) and inserting in lieu
    thereof the following new paragraph:
        ``(2) A dependent referred to in paragraph (1) is a dependent of a
    member of a uniformed service described in one of the following
    subparagraphs:
                ``(A) A member who is on active duty for a period of more
            than 30 days or died while on that duty.
                ``(B) A member who died from an injury, illness, or disease
            incurred or aggravated--
                        ``(i) while the member was on active duty under a
                    call or order to active duty of 30 days or less, on
                    active duty for training, or on inactive-duty training;
                    or
                        ``(ii) while the member was traveling to or from the
                    place at which the member was to perform, or had
                    performed, such active duty, active duty for training,
                    or inactive-duty training.
                ``(C) A member who died from an injury, illness, or disease
            incurred or aggravated in the line of duty while the member
            remained overnight immediately before the commencement of
            inactive-duty training, or while the member remained overnight
            between successive periods of inactive-duty training, at or in
            the vicinity of the site of the inactive-duty training, if the
            site was outside reasonable commuting distance from the member's
            residence.
                ``(D) A member who incurred or aggravated an injury,
            illness, or disease in the line of duty while serving on active
            duty for a period of 30 days or less (or while traveling to or
            from the place of such duty) and the member's orders are
            modified or extended, while the member is being treated for (or
            recovering from) the injury, illness, or disease, so as to
            result in active duty for a period of more than 30 days.
            However, this subparagraph entitles the dependent to medical and
            dental care only while the member remains on active duty.''.

        (c) Eligibility for Disability Retirement or Separation.--(1)
    Section 1204(2) of such title is amended to read as follows:
                ``(2) the disability--

    [[Page 111 STAT. 1731]]

                        ``(A) was incurred before September 24, 1996, as the
                    proximate result of--
                              ``(i) performing active duty or inactive-duty
                          training;
                              ``(ii) traveling directly to or from the place
                          at which such duty is performed; or
                              ``(iii) an injury, illness, or disease
                          incurred or aggravated while remaining overnight,
                          immediately before the commencement of inactive-
                          duty training, or while remaining overnight
                          between successive periods of inactive-duty
                          training, at or in the vicinity of the site of the
                          inactive-duty training, if the site of the
                          inactive-duty training is outside reasonable
                          commuting distance of the member's residence; or
                        ``(B) is a result of an injury, illness, or disease
                    incurred or aggravated in line of duty after September
                    23, 1996--
                              ``(i) while performing active duty or
                          inactive-duty training;
                              ``(ii) while traveling directly to or from the
                          place at which such duty is performed; or
                              ``(iii) while remaining overnight, immediately
                          before the commencement of inactive-duty training,
                          or while remaining overnight between successive
                          periods of inactive-duty training, at or in the
                          vicinity of the site of the inactive-duty
                          training, if the site of the inactive-duty
                          training is outside reasonable commuting distance
                          of the member's residence;''.

        (2) Section 1206 of such title is amended--
                (A) by redesignating paragraphs (2), (3), and (4) as
            paragraphs (3), (4), and (5), respectively, and
                (B) by inserting after paragraph (1) the following new
            paragraph (2):
                ``(2) the disability is a result of an injury, illness, or
            disease incurred or aggravated in line of duty while--
                        ``(A) performing active duty or inactive-duty
                    training;
                        ``(B) traveling directly to or from the place at
                    which such duty is performed; or
                        ``(C) while remaining overnight immediately before
                    the commencement of inactive-duty training, or while
                    remaining overnight between successive periods of
                    inactive-duty training, at or in the vicinity of the
                    site of the inactive-duty training, if the site is
                    outside reasonable commuting distance of the member's
                    residence;''.

        (d) Conforming Amendments and Related Clerical Amendments.--(1) The
    heading of section 1204 of title 10, United States Code, is amended to
    read as follows:

    ``Sec. 1204. Members on active duty for 30 days or less or on inactive-
                            duty training: retirement''.

        (2) The heading of section 1206 of such title is amended to read as
    follows:

    ``Sec. 1206. Members on active duty for 30 days or less or on inactive-
                            duty training: separation''.

        (3) The table of sections at the beginning of chapter 61 of such
    title is amended--

    [[Page 111 STAT. 1732]]

                (A) by striking out the item relating to section 1204 and
            inserting in lieu thereof the following:

    ``1204. Members on active duty for 30 days or less or on inactive-duty
               training:
               retirement.'';

            and
                (B) by striking out the item relating to section 1206 and
            inserting in lieu thereof the following:

    ``1206. Members on active duty for 30 days or less or on inactive-duty
               training:
               separation.''.

        (e) Recovery, Care, and Disposition of Remains.--Section
    1481(a)(2)(D) of such title is amended by inserting ``remaining
    overnight immediately before the commencement of inactive-duty training,
    or'' after ``(D)''.
        (f) Entitlement to Basic Pay.--Section 204 of title 37, United
    States Code, is amended by inserting ``while remaining overnight
    immediately before the commencement of inactive-duty training, or'' in
    subsections (g)(1)(D) and (h)(1)(D) after ``in line of duty''.
        (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C)
    of title 37, United States Code, is amended by inserting ``while
    remaining overnight immediately before the commencement of inactive-duty
    training, or'' after ``in line of duty''.

    SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE
                CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER
                GRADES.

        (a) Convening of Selection Boards.--Section 14101(a)(2) of title 10,
    United States Code, is amended by striking out ``(except in the case of
    a board convened to consider officers as provided in section 14301(e) of
    this title)''.
        (b) Eligibility for Consideration of Certain Army Officers.--Section
    14301 of such title is amended--
                (1) by striking out subsection (e); and
                (2) by redesignating subsections (f) and (g) as subsections
            (e) and (f), respectively.

        (c) General Officer Promotions.--Section 14308 of such title is
    amended--
                (1) in subsection (e)(2), by inserting ``a grade below
            colonel in'' after ``(2) an officer in''; and
                (2) in subsection (g)--
                        (A) by inserting ``or the Air Force'' in the first
                    sentence after ``of the Army'' the first place it
                    appears;
                        (B) by striking out ``in that grade'' in the first
                    sentence and all that follows through ``Secretary of the
                    Army'' and inserting in lieu thereof ``in the Army
                    Reserve or the Air Force Reserve, as the case may be, in
                    that grade''; and
                        (C) by striking out the second sentence.

        (d) Vacancy Promotions.--Section 14315(b)(1) of such title is
    amended by striking out ``duties'' in clause (A) and all that follows
    through ``as a unit,'' and inserting in lieu thereof ``duties of a
    general officer of the next higher reserve grade in the Army Reserve,''.

    SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR
                FORCE BASE SECURITY FUNCTIONS.

        (a) In General.--Chapter 1215 of title 10, United States Code, is
    amended by striking out

    [[Page 111 STAT. 1733]]

                            ``[No present sections]''

    and inserting in lieu thereof the following:

    ``Sec.
    12551. Prohibition of use of Air Force Reserve AGR personnel for Air
               Force base security functions.

    ``Sec. 12551. Prohibition of use of Air Force Reserve AGR personnel for
                            Air Force base security functions

        ``(a) Limitation.--The Secretary of the Air Force may not use
    members of the Air Force Reserve who are AGR personnel for the
    performance of force protection, base security, or security police
    functions at an Air Force facility in the United States.
        ``(b) AGR Personnel Defined.--In this section, the term `AGR
    personnel' means members of the Air Force Reserve who are on active duty
    (other than for training) in connection with organizing, administering,
    recruiting, instructing, or training the Air Force Reserve.''.
        (b) Clerical Amendment.--The items relating to chapter 1215 in the
    tables of chapters at the beginning of subtitle E, and at the beginning
    of part II of subtitle E, are amended to read as follows:

    ``1215. Miscellaneous Prohibitions and Penalties................12551''.

    SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE
                STATUS.

        (a) Authority for Involuntary Separation of Certain Inactive Status
    Officers.--Section 12683(b) of title 10, United States Code, is
    amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``apply--'' and inserting in lieu thereof ``apply to any of the
            following:''; and
                (2) by adding at the end the following new paragraph:
                ``(4) A separation of an officer who is in an inactive
            status in the Standby Reserve and who is not qualified for
            transfer to the Retired Reserve or is qualified for transfer to
            the Retired Reserve and does not apply for such a transfer.''.

        (b) Stylistic Amendments.--Such section is further
    amended--
                (1) in paragraphs (1), (2), and (3), by striking out ``to
            a'' and inserting in lieu thereof ``A'';
                (2) by striking out the semicolon at the end of paragraph
            (1) and inserting in lieu thereof a period; and
                (3) by striking out ``; and'' at the end of paragraph (2)
            and inserting in lieu thereof a period.

    SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR
                GUARDS AT FUNERALS OF VETERANS.

        (a) In General.--(1) Chapter 1 of title 32, United States Code, is
    amended by adding after section 113, as added by section 386(a), the
    following new section:

    ``Sec. 114. Honor guard functions at funerals for veterans

        ``(a) Subject to such regulations and restrictions as may be
    prescribed by the Secretary concerned, the performance of honor guard
    functions by members of the National Guard at funerals for veterans of
    the armed forces may be treated by the Secretary

    [[Page 111 STAT. 1734]]

    concerned as a Federal function for which appropriated funds may be
    used. Any such performance of honor guard functions at such a funeral
    may not be considered to be a period of drill or training otherwise
    required.
        ``(b) This section does not authorize additional appropriations for
    any fiscal year. Any expense of the National Guard that is incurred by
    reason of this section shall be paid from appropriations otherwise
    available for the National Guard.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding after the item relating to section
    113, as added by section 386(b), the following new item:

    ``114. Honor guard functions at funerals for veterans.''.

                        Subtitle C--Military Technicians

    SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL
                AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER
                GENERAL.

        (a) Retention.--Section 14702(a) of title 10, United States Code, is
    amended--
                (1) by striking out ``section 14506 or 14507'' and inserting
            in lieu thereof ``section 14506, 14507, or 14508''; and
                (2) by striking out ``or colonel'' and inserting in lieu
            thereof ``colonel, or brigadier general''.

        (b) Technical Amendment.--Section 14508(c) of such title is amended
    by striking out ``not later than the date on which the officer becomes
    60 years of age'' and inserting in lieu thereof ``not later than the
    last day of the month in which the officer becomes 60 years of age''.

    SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

        (a) Definition.--Subsection (a) of section 10216 of title 10, United
    States Code, is amended to read as follows:
        ``(a) In General.--(1) For purposes of this section and any other
    provision of law, a military technician (dual status) is a Federal
    civilian employee who--
                ``(A) is employed under section 3101 of title 5 or section
            709 of title 32;
                ``(B) is required as a condition of that employment to
            maintain membership in the Selected Reserve; and
                ``(C) is assigned to a position as a technician in the
            administration and training of the Selected Reserve or in the
            maintenance and repair of supplies or equipment issued to the
            Selected Reserve or the armed forces.

        ``(2) Military technicians (dual status) shall be authorized and
    accounted for as a separate category of civilian employees.''.
        (b) Unit Membership and Dual Status Requirement.--Such section is
    further amended by striking out subsection (d) and inserting in lieu
    thereof the following:
        ``(d) Unit Membership Requirement.--(1) Unless specifically exempted
    by law, each individual who is hired as a military technician (dual
    status) after December 1, 1995, shall be required as a condition of that
    employment to maintain membership in--
                ``(A) the unit of the Selected Reserve by which the
            individual is employed as a military technician; or

    [[Page 111 STAT. 1735]]

                ``(B) a unit of the Selected Reserve that the individual is
            employed as a military technician to support.

        ``(2) Paragraph (1) does not apply to a military technician (dual
    status) who is employed by the Army Reserve in an area other than Army
    Reserve troop program units.
        ``(e) Dual Status Requirement.--(1) Funds appropriated for the
    Department of Defense may not (except as provided in paragraph (2)) be
    used for compensation as a military technician of any individual hired
    as a military technician after February 10, 1996, who is no longer a
    member of the Selected Reserve.
        ``(2) The Secretary concerned may pay compensation described in
    paragraph (1) to an individual described in that paragraph who is no
    longer a member of the Selected Reserve for a period not to exceed six
    months following the individual's loss of membership in the Selected
    Reserve if the Secretary determines that such loss of membership was not
    due to the failure of that individual to meet military standards.''.
        (c) National Guard Dual Status Requirement.--Section 709(b) of title
    32, United States Code, is amended by striking out ``Except as
    prescribed by the Secretary concerned, a technician'' and inserting in
    lieu thereof ``A technician''.
        (d) Plan for Clarification of Statutory Authority of Military
    Technicians.--(1) The Secretary of Defense shall submit to Congress, as
    part of the budget justification materials submitted in support of the
    budget for the Department of Defense for fiscal year 1999, a legislative
    proposal to provide statutory authority and clarification under title 5,
    United States Code--
                (A) for the hiring, management, promotion, separation, and
            retirement of military technicians who are employed in support
            of units of the Army Reserve or Air Force Reserve; and
                (B) for the transition to the competitive service of an
            individual who is hired as a military technician in support of a
            unit of the Army Reserve or Air Force Reserve and who (as
            determined by the Secretary concerned) fails to maintain
            membership in the Selected Reserve through no fault of the
            individual.

        (2) The legislative proposal under paragraph (1) shall be developed
    in consultation with the Director of the Office of Personnel Management.
        (e) Conforming Repeal.--Section 8016 of Public Law 104-61 (109 Stat.
    654; 10 U.S.C. 10101 note) is repealed.
        (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10,
    United States Code, is amended by striking out ``subsection (a)(1)'' in
    subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof
    ``subsection (b)(1)''.
        (g) Conforming Amendments to Section 10216.--Section 10216 of title
    10, United States Code, is further amended as follows:
                (1) The heading of subsection (b) is amended by inserting
            ``(Dual Status)'' after ``Military Technicians''.
                (2) Subsection (b)(1) is amended--
                        (A) by inserting ``(dual status)'' after ``for
                    military technicians'';
                        (B) by striking out ``dual status military
                    technicians'' and inserting in lieu thereof ``military
                    technicians (dual status)''; and
                        (C) by inserting ``(dual status)'' after ``military
                    technicians'' in subparagraph (C).

    [[Page 111 STAT. 1736]]

                (3) Subsection (b)(2) is amended by inserting ``(dual
            status)'' after ``military technicians'' both places it appears.
                (4) Subsection (b)(3) is amended by inserting ``(dual
            status)'' after ``Military technician''.
                (5) Subsection (c) is amended--
                        (A) in the matter preceding paragraph (1)(A), by
                    inserting ``(dual status)'' after ``military
                    technicians'';
                        (B) in paragraph (1), by striking out ``dual-status
                    technicians'' in subparagraphs (A), (B), (C), and (D)
                    and inserting in lieu thereof ``military technicians
                    (dual status)'';
                        (C) in paragraph (2)(A), by inserting ``(dual
                    status)'' after ``military technician''; and
                        (D) in paragraph (2)(B), by striking out
                    ``delineate--'' and all that follows through ``or other
                    reasons'' in clause (ii) and inserting in lieu thereof
                    ``delineate the specific force structure reductions''.

        (h) Clerical Amendments.--(1) The heading of section 10216 of such
    title is amended to read as follows:

    ``Sec. 10216. Military technicians (dual status)''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 1007 of such title is amended to read as
    follows:

    ``10216. Military technicians (dual status).''.

        (i) Other Conforming Amendments.--(1) Section 115(g) of such title
    is amended by inserting ``(dual status)'' in the first sentence after
    ``military technicians'' and in the second sentence after ``military
    technician''.
        (2) Section 115a(h) of such title is amended--
                (A) by inserting ``(displayed in the aggregate and
            separately for military technicians (dual status) and non-dual
            status military technicians)'' in the matter preceding paragraph
            (1) after ``of the following''; and
                (B) by striking out paragraph (3).

    SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

        (a) In General.--(1) Chapter 1007 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 10217. Non-dual status military technicians

        ``(a) Definition.--For the purposes of this section and any other
    provision of law, a non-dual status military technician is a civilian
    employee of the Department of Defense serving in a military technician
    position who--
                ``(1) was hired as a military technician before the date of
            the enactment of the National Defense Authorization Act for
            Fiscal Year 1998 under any of the authorities specified in
            subsection (c); and
                ``(2) as of the date of the enactment of that Act is not a
            member of the Selected Reserve or after such date ceased to be a
            member of the Selected Reserve.

        ``(b) Employment Authorities.--The authorities referred to in
    subsection (a) are the following:
                ``(1) Section 10216 of this title.
                ``(2) Section 709 of title 32.
                ``(3) The requirements referred to in section 8401 of
            title 5.

    [[Page 111 STAT. 1737]]

                ``(4) Section 8016 of the Department of Defense
            Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 654), and
            any comparable provision of law enacted on an annual basis in
            the Department of Defense Appropriations Acts for fiscal years
            1984 through 1995.
                ``(5) Any memorandum of agreement between the Department of
            Defense and the Office of Personnel Management providing for the
            hiring of military technicians.''.

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

    ``10217. Non-dual status military technicians.''.

        (b) Limitation.--The number of civilian employees of a military
    department who are non-dual status military technicians as of September
    30, 1998, may not exceed the following:
                (1) For the Army Reserve, 1,500.
                (2) For the Army National Guard of the United States, 2,400.
                (3) For the Air Force Reserve, 0.
                (4) For the Air National Guard of the United States, 450.

        (c) 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 the number of military technician positions that are
    held by non-dual status military technicians as of September 30, 1997,
    shown separately for each of the following:
                (1) The Army Reserve.
                (2) The Army National Guard of the United States.
                (3) The Air Force Reserve.
                (4) The Air National Guard of the United States.

        (d) <<NOTE: 10 USC 10217 note.>> Plan for Full Utilization of
    Military Technicians (Dual Status).--(1) Not later than 180 days after
    the date of the enactment of this Act, the Secretary of Defense shall
    submit to Congress a plan for ensuring that, on and after September 30,
    2007, all military technician positions are held only by military
    technicians (dual status).

        (2) The plan shall provide for achieving, by September 30, 2002, a
    50 percent reduction, by conversion of positions or otherwise, in the
    number of non-dual status military technicians that are holding military
    technicians positions, as compared with the number of non-dual status
    technicians that held military technician positions as of September 30,
    1997, as specified in the report under subsection (c).
        (3) Among the alternative actions to be considered in developing the
    plan, the Secretary shall consider the feasibility and cost of each of
    the following:
                (A) Eliminating or consolidating technician functions and
            positions.
                (B) Contracting with private sector sources for the
            performance of functions performed by military technicians.
                (C) Converting non-dual status military technician positions
            to military technician (dual status) positions or to positions
            in the competitive service or, in the case of positions of the
            Army National Guard of the United States or the Air National
            Guard of the United States, to positions of State employment.
                (D) Use of incentives to facilitate attainment of the
            objectives specified for the plan in paragraphs (1) and (2).

    [[Page 111 STAT. 1738]]

        (4) The Secretary shall submit with the plan any recommendations for
    legislation that the Secretary considers necessary to carry out the
    plan.
        (e) Definitions for Categories of Military Technicians.--In this
    section:
                (1) The term ``non-dual status military technician'' has the
            meaning given that term in section 10217 of title 10, United
            States Code, as added by subsection (a).
                (2) The term ``military technician (dual status)'' has the
            meaning given the term in section 10216(a) of such title.

    SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR
                PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).

        (a) Report Required.--Not later than January 1, 1998, the Secretary
    of Defense shall submit to Congress a report on the feasibility and
    desirability of conversion of AGR personnel to military technicians
    (dual status). The report shall--
                (1) identify advantages and disadvantages of such a
            conversion;
                (2) identify possible savings if such a conversion were to
            be carried out; and
                (3) set forth the recommendation of the Secretary as to
            whether such a conversion should be made.

        (b) AGR Personnel Defined.--For purposes of subsection (a), the term
    ``AGR personnel'' means members of the Army or Air Force reserve
    components who are on active duty (other than for training) in
    connection with organizing, administering, recruiting, instructing, or
    training their respective reserve components.

      Subtitle D <<NOTE: 10 USC 503 note.>> --Measures To Improve Recruit
    Quality and Reduce Recruit Attrition

    SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

        (a) In General.--The Secretary of Defense shall carry out reforms in
    the recruiting systems of the Army, Navy, Air Force, and Marine Corps in
    order to improve the quality of new recruits and to reduce attrition
    among recruits.
        (b) Specific Reforms.--As part of the reforms in military recruiting
    systems to be undertaken under subsection (a), the Secretary shall take
    the following steps:
                (1) Improve the system of pre-enlistment waivers and
            separation codes used for recruits by (A) revising and updating
            those waivers and codes to allow more accurate and useful data
            collection about those separations, and (B) prescribing
            regulations to ensure that those waivers and codes are
            interpreted in a uniform manner by the military services.
                (2) Develop a reliable database for (A) analyzing (at both
            the Department of Defense and service-level) data on reasons for
            attrition of new recruits, and (B) undertaking Department of
            Defense or service-specific measures (or both) to control and
            manage such attrition.
                (3) Require that the Secretary of each military department
            (A) adopt or strengthen incentives for recruiters to thoroughly
            prescreen potential candidates for recruitment, and (B) link

    [[Page 111 STAT. 1739]]

            incentives for recruiters, in part, to the ability of a
            recruiter to screen out unqualified candidates before
            enlistment.
                (4) Require that the Secretary of each military department
            include as a measurement of recruiter performance the percentage
            of persons enlisted by a recruiter who complete initial combat
            training or basic training.
                (5) Assess trends in the number and use of waivers over the
            1991-1997 period that were issued to permit applicants to enlist
            with medical or other conditions that would otherwise be
            disqualifying.
                (6) Require the Secretary of each military department to
            implement policies and procedures (A) to ensure the prompt
            separation of recruits who are unable to successfully complete
            basic training, and (B) to remove those recruits from the
            training environment while separation proceedings are pending.

        (c) Report.--Not later than March 31, 1998, the Secretary shall
    submit to Congress a report of the trends assessed under subsection
    (b)(5). The information on those trends provided in the report shall be
    shown by armed force and by category of waiver. The report shall include
    recommendations of the Secretary for changing, revising, or limiting the
    use of waivers referred to in that subsection.

    SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR
                MILITARY SERVICE.

        (a) In General.--The Secretary of Defense shall improve the medical
    prescreening of applicants for entrance into the Army, Navy, Air Force,
    or Marine Corps.
        (b) Specific Steps.--As part of those improvements, the Secretary
    shall take the following steps:
                (1) Require that each applicant for service in the Army,
            Navy, Air Force, or Marine Corps (A) provide to the Secretary
            the name of the applicant's medical insurer and the names of
            past medical providers, and (B) sign a release allowing the
            Secretary to request and obtain medical records of the
            applicant.
                (2) Require that the forms and procedures for medical
            prescreening of applicants that are used by recruiters and by
            Military Entrance Processing Commands be revised so as to ensure
            that medical questions are specific, unambiguous, and tied
            directly to the types of medical separations most common for
            recruits during basic training and follow-on training.
                (3) Add medical screening tests to the examinations of
            recruits carried out by Military Entrance Processing Stations,
            provide more thorough medical examinations to selected groups of
            applicants, or both, to the extent that the Secretary determines
            that to do so could be cost effective in reducing attrition at
            basic training.
                (4) Provide for an annual quality control assessment of the
            effectiveness of the Military Entrance Processing Commands in
            identifying medical conditions in recruits that existed before
            enlistment in the Armed Forces, each such assessment to be
            performed by an agency or contractor other than the Military
            Entrance Processing Commands.

    [[Page 111 STAT. 1740]]

    SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

        (a) In General.--The Secretary of Defense shall take steps to
    improve the physical fitness of recruits before they enter basic
    training.
        (b) Specific Steps.--As part of those improvements, the Secretary
    shall take the following steps:
                (1) Direct the Secretary of each military department to
            implement programs under which new recruits who are in the
            Delayed Entry Program are encouraged to participate in physical
            fitness activities before reporting to basic training.
                (2) Develop a range of incentives for new recruits to
            participate in physical fitness programs, as well as for those
            recruits who improve their level of fitness while in the Delayed
            Entry Program, which may include access to Department of Defense
            military fitness facilities, and access to military medical
            facilities in the case of a recruit who is injured while
            participating in physical activities with recruiters or other
            military personnel.
                (3) Evaluate whether partnerships between recruiters and
            reserve components, or other innovative arrangements, could
            provide a pool of qualified personnel to assist in the conduct
            of physical training programs for new recruits in the Delayed
            Entry Program.

                   Subtitle E--Military Education and Training

                       PART I--OFFICER EDUCATION PROGRAMS

    SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES
                NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

        (a) Requirement.--Section 6958 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(d) To be admitted to the Naval Academy, an appointee must take
    and subscribe to an oath prescribed by the Secretary of the Navy. If a
    candidate for admission refuses to take and subscribe to the prescribed
    oath, the candidate's appointment is terminated.''.
        (b) Exception for Midshipmen From Foreign Countries.--Section 6957
    of such title is amended by adding at the end the following new
    subsection:
        ``(d) A person receiving instruction under this section is not
    subject to section 6958(d) of this title.''.

    SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

        (a) United States Military Academy.--(1) Chapter 403 of title 10,
    United States Code, is amended by inserting after section 4344 the
    following new section:

    ``Sec. 4345. Exchange program with foreign military academies

        ``(a) Exchange Program Authorized.--The Secretary of the Army may
    permit a student enrolled at a military academy of a foreign country to
    receive instruction at the Academy in exchange for a cadet receiving
    instruction at that foreign military academy pursuant to an exchange
    agreement entered into between the Secretary and appropriate officials
    of the foreign country. Students receiving instruction at the Academy
    under the exchange program

    [[Page 111 STAT. 1741]]

    shall be in addition to persons receiving instruction at the Academy
    under section 4344 of this title.
        ``(b) Limitations on Number and Duration of Exchanges.--An exchange
    agreement under this section between the Secretary and a foreign country
    shall provide for the exchange of students on a one-for-one basis each
    fiscal year. Not more than 10 cadets and a comparable number of students
    from all foreign military academies participating in the exchange
    program may be exchanged during any fiscal year. The duration of an
    exchange may not exceed the equivalent of one academic semester at the
    Academy.
        ``(c) Costs and Expenses.--(1) A student from a military academy of
    a foreign country is not entitled to the pay, allowances, and emoluments
    of a cadet by reason of attendance at the Academy under the exchange
    program, and the Department of Defense may not incur any cost of
    international travel required for transportation of such a student to
    and from the sponsoring foreign country.
        ``(2) The Secretary may provide a student from a foreign country
    under the exchange program, during the period of the exchange, with
    subsistence, transportation within the continental United States,
    clothing, health care, and other services to the same extent that the
    foreign country provides comparable support and services to the
    exchanged cadet in that foreign country.
        ``(3) The Academy shall bear all costs of the exchange program from
    funds appropriated for the Academy. Expenditures in support of the
    exchange program may not exceed $50,000 during any fiscal year.
        ``(d) Application of Other Laws.--Subsections (c) and (d) of section
    4344 of this title shall apply with respect to a student enrolled at a
    military academy of a foreign country while attending the Academy under
    the exchange program.
        ``(e) Regulations.--The Secretary shall prescribe regulations to
    implement this section. Such regulations may include qualification
    criteria and methods of selection for students of foreign military
    academies to participate in the exchange program.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 4344 the
    following new item:

    ``4345. Exchange program with foreign military academies.''.

        (b) Naval Academy.--(1) Chapter 603 of title 10, United States Code,
    is amended by inserting after section 6957 the following new section:

    ``Sec. 6957a. Exchange program with foreign military academies

        ``(a) Exchange Program Authorized.--The Secretary of the Navy may
    permit a student enrolled at a military academy of a foreign country to
    receive instruction at the Naval Academy in exchange for a midshipman
    receiving instruction at that foreign military academy pursuant to an
    exchange agreement entered into between the Secretary and appropriate
    officials of the foreign country. Students receiving instruction at the
    Academy under the exchange program shall be in addition to persons
    receiving instruction at the Academy under section 6957 of this title.
        ``(b) Limitations on Number and Duration of Exchanges.--An exchange
    agreement under this section between the Secretary and a foreign country
    shall provide for the exchange of students

    [[Page 111 STAT. 1742]]

    on a one-for-one basis each fiscal year. Not more than 10 midshipmen and
    a comparable number of students from all foreign military academies
    participating in the exchange program may be exchanged during any fiscal
    year. The duration of an exchange may not exceed the equivalent of one
    academic semester at the Naval Academy.
        ``(c) Costs and Expenses.--(1) A student from a military academy of
    a foreign country is not entitled to the pay, allowances, and emoluments
    of a midshipman by reason of attendance at the Naval Academy under the
    exchange program, and the Department of Defense may not incur any cost
    of international travel required for transportation of such a student to
    and from the sponsoring foreign country.
        ``(2) The Secretary may provide a student from a foreign country
    under the exchange program, during the period of the exchange, with
    subsistence, transportation within the continental United States,
    clothing, health care, and other services to the same extent that the
    foreign country provides comparable support and services to the
    exchanged midshipman in that foreign country.
        ``(3) The Naval Academy shall bear all costs of the exchange program
    from funds appropriated for the Academy. Expenditures in support of the
    exchange program may not exceed $50,000 during any fiscal year.
        ``(d) Application of Other Laws.--Subsections (c) and (d) of section
    6957 of this title shall apply with respect to a student enrolled at a
    military academy of a foreign country while attending the Naval Academy
    under the exchange program.
        ``(e) Regulations.--The Secretary shall prescribe regulations to
    implement this section. Such regulations may include qualification
    criteria and methods of selection for students of foreign military
    academies to participate in the exchange program.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 6957 the
    following new item:

    ``6957a. Exchange program with foreign military academies.''.

        (c) Air Force Academy.--(1) Chapter 903 of title 10, United States
    Code, is amended by inserting after section 9344 the following new
    section:

    ``Sec. 9345. Exchange program with foreign military academies

        ``(a) Exchange Program Authorized.--The Secretary of the Air Force
    may permit a student enrolled at a military academy of a foreign country
    to receive instruction at the Air Force Academy in exchange for an Air
    Force cadet receiving instruction at that foreign military academy
    pursuant to an exchange agreement entered into between the Secretary and
    appropriate officials of the foreign country. Students receiving
    instruction at the Academy under the exchange program shall be in
    addition to persons receiving instruction at the Academy under section
    9344 of this title.
        ``(b) Limitations on Number and Duration of Exchanges.--An exchange
    agreement under this section between the Secretary and a foreign country
    shall provide for the exchange of students on a one-for-one basis each
    fiscal year. Not more than 10 Air Force cadets and a comparable number
    of students from all foreign military academies participating in the
    exchange program may be exchanged during any fiscal year. The duration
    of an exchange

    [[Page 111 STAT. 1743]]

    may not exceed the equivalent of one academic semester at the Air Force
    Academy.
        ``(c) Costs and Expenses.--(1) A student from a military academy of
    a foreign country is not entitled to the pay, allowances, and emoluments
    of an Air Force cadet by reason of attendance at the Air Force Academy
    under the exchange program, and the Department of Defense may not incur
    any cost of international travel required for transportation of such a
    student to and from the sponsoring foreign country.
        ``(2) The Secretary may provide a student from a foreign country
    under the exchange program, during the period of the exchange, with
    subsistence, transportation within the continental United States,
    clothing, health care, and other services to the same extent that the
    foreign country provides comparable support and services to the
    exchanged Air Force cadet in that foreign country.
        ``(3) The Air Force Academy shall bear all costs of the exchange
    program from funds appropriated for the Academy. Expenditures in support
    of the exchange program may not exceed $50,000 during any fiscal year.
        ``(d) Application of Other Laws.--Subsections (c) and (d) of section
    9344 of this title shall apply with respect to a student enrolled at a
    military academy of a foreign country while attending the Air Force
    Academy under the exchange program.
        ``(e) Regulations.--The Secretary shall prescribe regulations to
    implement this section. Such regulations may include qualification
    criteria and methods of selection for students of foreign military
    academies to participate in the exchange program.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 9344 the
    following new item:

    ``9345. Exchange program with foreign military academies.''.

        (d) Repeal of Obsolete Limitation.--Section 9353(a) of such title is
    amended by striking out ``After the date of the accrediting of the
    Academy, the'' and inserting in lieu thereof ``The''.

    SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE
                ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

        (a) United States Military Academy.--Section 4344(b) of title 10,
    United States Code, is amended--
                (1) in paragraph (2), by striking out the period at the end
            and inserting in lieu thereof the following: ``, except that the
            reimbursement rates may not be less than the cost to the United
            States of providing such instruction, including pay, allowances,
            and emoluments, to a cadet appointed from the United States.'';
            and
                (2) by adding at the end the following new paragraph:

        ``(3) The amount of reimbursement waived under paragraph (2) may not
    exceed 35 percent of the per-person reimbursement amount otherwise
    required to be paid by a foreign country under such paragraph, except in
    the case of not more than five persons receiving instruction at the
    Academy under this section at any one time.''.
        (b) Naval Academy.--Section 6957(b) of such title is
    amended--
                (1) in paragraph (2), by striking out the period at the end
            and inserting in lieu thereof the following: ``, except that

    [[Page 111 STAT. 1744]]

            the reimbursement rates may not be less than the cost to the
            United States of providing such instruction, including pay,
            allowances, and emoluments, to a midshipman appointed from the
            United States.''; and
                (2) by adding at the end the following new paragraph:

        ``(3) The amount of reimbursement waived under paragraph (2) may not
    exceed 35 percent of the per-person reimbursement amount otherwise
    required to be paid by a foreign country under such paragraph, except in
    the case of not more than five persons receiving instruction at the
    Naval Academy under this section at any one time.''.
        (c) Air Force Academy.--Section 9344(b) of such title is amended--
                (1) in paragraph (2), by striking out the period at the end
            and inserting in lieu thereof the following: ``, except that the
            reimbursement rates may not be less than the cost to the United
            States of providing such instruction, including pay, allowances,
            and emoluments, to a cadet appointed from the United States.'';
            and
                (2) by adding at the end the following new paragraph:

        ``(3) The amount of reimbursement waived under paragraph (2) may not
    exceed 35 percent of the per-person reimbursement amount otherwise
    required to be paid by a foreign country under such paragraph, except in
    the case of not more than five persons receiving instruction at the Air
    Force Academy under this section at any one time.''.
        (d) <<NOTE: 10 USC 4344 note.>>  Effective Date.--The amendments
    made by this section apply with respect to students from a foreign
    country entering the United States Military Academy, the United States
    Naval Academy, or the United States Air Force Academy on or after May 1,
    1998.

    SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY
                COLLEGES.

        (a) <<NOTE: 10 USC 2111a note.>>  Definition of Senior Military
    Colleges.--For purposes of this section, the term ``senior military
    colleges'' means the
    following:
                (1) Texas A&M University.
                (2) Norwich University.
                (3) The Virginia Military Institute.
                (4) The Citadel.
                (5) Virginia Polytechnic Institute and State University.
                (6) North Georgia College and State University.

        (b) <<NOTE: 10 USC 2111a note.>>  Findings.--Congress finds the
    following:
                (1) The senior military colleges consistently have provided
            substantial numbers of highly qualified, long-serving leaders to
            the Armed Forces.
                (2) The quality of the military leaders produced by the
            senior military colleges is, in part, the result of the rigorous
            military environment imposed on students attending the senior
            military colleges by the colleges, as well as the result of the
            long-standing close support relationship between the Corps of
            Cadets at each college and the Reserve Officer Training Corps
            personnel at the colleges who serve as effective leadership role
            models and mentors.
                (3) In recognition of the quality of the young leaders
            produced by the senior military colleges, the Department of

    [[Page 111 STAT. 1745]]

            Defense and the military services have traditionally maintained
            special relationships with the colleges, including the policy to
            grant active duty service in the Army to graduates of the
            colleges who desire such service and who are recommended for
            such service by their ROTC professors of military science.
                (4) Each of the senior military colleges has demonstrated an
            ability to adapt its systems and operations to changing
            conditions in, and requirements of, the Armed Forces without
            compromising the quality of leaders produced and without
            interruption of the close relationship between the colleges and
            the Department of Defense.

        (c) <<NOTE: 10 USC 2111a note.>>  Sense of Congress.--In light of
    the findings in subsection (b), it is the sense of Congress that--
                (1) the proposed initiative of the Secretary of the Army to
            end the commitment to active duty service for all graduates of
            senior military colleges who desire such service and who are
            recommended for such service by their ROTC professors of
            military science is short-sighted and contrary to the long-term
            interests of the Army;
                (2) as they have in the past, the senior military colleges
            can and will continue to accommodate to changing military
            requirements to ensure that future graduates entering military
            service continue to be officers of superb quality who are
            quickly assimilated by the Armed Forces and fully prepared to
            make significant contributions to the Armed Forces through
            extended military careers; and
                (3) decisions of the Secretary of Defense or the Secretary
            of a military department that fundamentally and unilaterally
            change the long-standing relationship of the Armed Forces with
            the senior military colleges are not in the best interests of
            the Department of Defense or the Armed Forces and are patently
            unfair to students who made decisions to enroll in the senior
            military colleges on the basis of existing Department and Armed
            Forces policy.

        (d) Continuation of Support for Senior Military
    Colleges.--Section 2111a of title 10, United States Code, is
    amended--
                (1) by redesignating subsection (d) as subsection (f); and
                (2) by inserting after subsection (c) the following new
            subsections:

        ``(d) Termination or Reduction of Program Prohibited.--The Secretary
    of Defense and the Secretaries of the military departments may not take
    or authorize any action to terminate or reduce a unit of the Senior
    Reserve Officers' Training Corps at a senior military college unless the
    termination or reduction is specifically requested by the college.
        ``(e) Assignment to Active Duty.--(1) The Secretary of the Army
    shall ensure that a graduate of a senior military college who desires to
    serve as a commissioned officer on active duty upon graduation from the
    college, who is medically and physically qualified for active duty, and
    who is recommended for such duty by the professor of military science at
    the college, shall be assigned to active duty. This paragraph shall
    apply to a member of the program at a senior military college who
    graduates from the college after March 31, 1997.
        ``(2) Nothing in this section shall be construed to prohibit the
    Secretary of the Army from requiring a member of the program

    [[Page 111 STAT. 1746]]

    who graduates from a senior military college to serve on active duty.''.
        (e) Technical Corrections.--Subsection (f) of such section, as
    redesignated by subsection (d)(1), is amended--
                (1) in paragraph (2), by striking out ``College'' and
            inserting in lieu thereof ``University''; and
                (2) in paragraph (6), by inserting before the period the
            following: ``and State University''.

        (f) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 2111a. Support for senior military colleges''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 103 of title 10, United States Code, is amended
    to read as follows:

    ``2111a. Support for senior military colleges.''.

    SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR
                PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.

        (a) Report.--Not later than 180 days after the date of the enactment
    of this Act, 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 utility of permitting
    United States nationals to participate in the Senior Reserve Officers'
    Training Corps program.
        (b) Required Information.--The Secretary shall include in the report
    the following information:
                (1) A brief history of the prior admission of United States
            nationals to the Senior Reserve Officers' Training Corps,
            including the success rate of these cadets and midshipmen and
            how that rate compared to the average success rate of cadets and
            midshipmen during that same period.
                (2) The advantages of permitting United States nationals to
            participate in the Senior Reserve Officers' Training Corps
            program.
                (3) The disadvantages of permitting United States nationals
            to participate in the Senior Reserve Officers' Training Corps
            program.
                (4) The incremental cost of including United States
            nationals in the Senior Reserve Officers' Training Corps.
                (5) Methods of minimizing the risk that United States
            nationals admitted to the Senior Reserve Officers' Training
            Corps would be later disqualified because of ineligibility for
            United States citizenship.
                (6) The recommendations of the Secretary on whether United
            States nationals should be eligible to participate in the Senior
            Reserve Officers' Training Corps program, and if so, a
            legislative proposal which would, if enacted, achieve that
            result.

    SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR
                RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE
                ENROLLMENT AND ENHANCE EFFICIENCY.

        (a) Requirement.--Chapter 102 of title 10, United States Code, is
    amended by adding at the end the following new section:

    [[Page 111 STAT. 1747]]

    ``Sec. 2032. Responsibility of the Secretaries of the military
                            departments to maximize enrollment and enhance
                            efficiency

        ``(a) Coordination.--The Secretary of each military department, in
    establishing, maintaining, transferring, and terminating Junior Reserve
    Officers' Training Corps units under section 2031 of this title, shall
    do so in a coordinated manner that is designed to maximize enrollment in
    the Corps and to enhance administrative efficiency in the management of
    the Corps.
        ``(b) Consideration of New School Openings and Consolidations.--In
    carrying out subsection (a), the Secretary of a military department
    shall take into consideration--
                ``(1) openings of new schools;
                ``(2) consolidations of schools; and
                ``(3) the desirability of continuing the opportunity for
            participation in the Corps by participants whose continued
            participation would otherwise be adversely affected by new
            school openings and consolidations of schools.''.

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

    ``2032. Responsibility of the Secretaries of the military departments to
               maximize
               enrollment and enhance efficiency.''.

                        PART II--OTHER EDUCATION MATTERS

    SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

        (a) Authority To Admit Enlisted Members as Students.--Section 7045
    of title 10, United States Code, is amended--
                (1) in subsection (a)--
                        (A) by inserting ``(1)'' after ``(a)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(2) The Secretary may permit an enlisted member of the armed
    forces who is assigned to the Naval Postgraduate School or to a nearby
    command to receive instruction at the Naval Postgraduate School.
    Admission of enlisted members for instruction under this paragraph shall
    be on a space-available basis.'';
                (2) in subsection (b)--
                        (A) by striking out ``the students'' and inserting
                    in lieu thereof ``officers''; and
                        (B) by adding at the end the following new sentence:
                    ``In the case of an enlisted member permitted to receive
                    instruction at the Postgraduate School, the Secretary of
                    the Navy shall charge that member only for such costs
                    and fees as the Secretary considers appropriate (taking
                    into consideration the admission of enlisted members on
                    a space-available basis).''; and
                (3) in subsection (c)--
                        (A) by striking out ``officers'' both places it
                    appears and inserting in lieu thereof ``members''; and
                        (B) by striking out ``same regulations'' and
                    inserting in lieu thereof ``such regulations, as
                    determined appropriate by the Secretary of the Navy,''.

        (b) Clerical Amendments.--(1) The heading of section 7045 of such
    title is amended to read as follows:

    [[Page 111 STAT. 1748]]

    ``Sec. 7045. Officers of the other armed forces; enlisted members:
                            admission''.

        (2) The item relating to section 7045 in the table of sections at
    the beginning of chapter 605 of such title is amended to read as
    follows:

    ``7045. Officers of the other armed forces; enlisted members:
               admission.''.

        (c) Amendment To Reflect Revised Civil Service Grade Structure.--
    Section 7043(b) of such title is amended by striking out ``grade GS-18
    of the General Schedule under section 5332 of title 5'' and inserting in
    lieu thereof ``level IV of the Executive Schedule''.

    SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

        (a) Expansion of Members Eligible for Program To Include Instructors
    at Air Force Training Schools.--Section 9315 of title 10, United States
    Code, is amended--
                (1) in subsection (a)(1), by striking out ``enlisted members
            of the Air Force'' and inserting in lieu thereof ``enlisted
            members described in subsection (b)'';
                (2) by striking out ``(b) Subject to subsection (c),'' and
            inserting in lieu thereof ``(c)(1) Subject to paragraph (2),'';
                (3) by redesignating subsection (c) as paragraph (2) and in
            that paragraph redesignating clauses (1) and (2) as clauses (A)
            and (B), respectively; and
                (4) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) Members Eligible for Programs.--Subject to such other
    eligibility requirements as the Secretary concerned may prescribe, the
    following members of the armed forces are eligible to participate in
    programs of higher education under subsection (a)(1):
                ``(1) Enlisted members of the Air Force.
                ``(2) Enlisted members of the armed forces other than the
            Air Force who are serving as instructors at Air Force training
            schools.''.

        (b) Clerical Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Establishment and
            Mission.--'' after ``(a)''; and
                (2) in subsection (c), as redesignated by subsection (a)(2),
            by inserting ``Conferral of Degrees.--'' after ``(c)''.

        (c) <<NOTE: 10 USC 9315 note.>>  Effective Date.--Subsection (b) of
    section 9315 of such title, as added by subsection (a)(4), applies with
    respect to enrollments in the Community College of the Air Force after
    March 31, 1996.

    SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF
                MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN
                SUPPORT OF A CONTINGENCY OPERATION.

        (a) Preservation of Educational Assistance.--Section
    16131(c)(3)(B)(i) of title 10, United States Code, is amended by
    striking out ``, in connection with the Persian Gulf War,''.
        (b) Extension of 10-Year Period of Availability.--Section
    16133(b)(4) of such title is amended--
                (1) by striking out ``(A)'';
                (2) by striking out ``, during the Persian Gulf War,'';
                (3) by redesignating clauses (i) and (ii) as subparagraphs
            (A) and (B), respectively; and

    [[Page 111 STAT. 1749]]

                (4) by striking out ``(B) For the purposes'' and all that
            follows through ``title 38.''.

                   PART III--TRAINING OF ARMY DRILL SERGEANTS

    SEC. 556. <<NOTE: 10 USC 4318 note.>>  REFORM OF ARMY DRILL SERGEANT
                SELECTION AND TRAINING PROCESS.

        (a) In General.--The Secretary of the Army shall reform the process
    for selection and training of drill sergeants for the Army.
        (b) Measures To Be Taken.--As part of such reform, the Secretary
    shall undertake the following measures (unless, in the case of any such
    measure, the Secretary determines that that measure would not result in
    improved effectiveness and efficiency in the drill sergeant selection
    and training process):
                (1) Review the overall process used by the Department of the
            Army for selection of drill sergeants to determine--
                        (A) whether that process is providing drill sergeant
                    candidates in sufficient quantity and quality to meet
                    the needs of the training system; and
                        (B) whether duty as a drill sergeant is a career-
                    enhancing assignment (or is seen by potential drill
                    sergeant candidates as a career-enhancing assignment)
                    and what steps could be taken to ensure that such duty
                    is in fact a career-enhancing assignment.
                (2) Incorporate into the selection process for all drill
            sergeants the views and recommendations of the officers and
            senior noncommissioned officers in the chain of command of each
            candidate for selection (particularly those of senior
            noncommissioned officers) regarding the candidate's suitability
            and qualifications to be a drill sergeant.
                (3) Establish a requirement for psychological screening for
            each drill sergeant candidate.
                (4) Reform the psychological screening process for drill
            sergeant candidates to improve the quality, depth, and rigor of
            that screening process.
                (5) Revise the evaluation system for drill sergeants in
            training to provide for a so-called ``whole person'' assessment
            that gives insight into the qualifications and suitability of a
            drill sergeant candidate beyond the candidate's ability to
            accomplish required performance tasks.
                (6) Revise the Army military personnel records system so
            that, under conditions and circumstances to be specified in
            regulations prescribed by the Secretary, a drill sergeant
            trainee who fails to complete the training to be a drill
            sergeant and is denied graduation will not have the fact of that
            failure recorded in those personnel records.
                (7) Provide each drill sergeant in training with the
            opportunity, before or during that training, to work with new
            recruits in initial entry training and to be evaluated on that
            opportunity.

        (c) Report.--Not later than March 31, 1998, 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 of the reforms adopted pursuant to this section or, in the case
    of any measure specified in any of paragraphs (1) through (7) of
    subsection (b) that was not adopted, the rationale why that measure was
    not adopted.

    [[Page 111 STAT. 1750]]

    SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT
                TRAINEES.

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

    ``Sec. 4318. Drill sergeant trainees: human relations training

        ``(a) Human Relations Training Required.--The Secretary of the Army
    shall include as part of the training program for drill sergeants a
    course in human relations. The course shall be a minimum of two days in
    duration.
        ``(b) Resources.--In developing a human relations course under this
    section, the Secretary shall use the capabilities and expertise of the
    Defense Equal Opportunity Management Institute (DEOMI).''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``4318. Drill sergeant trainees: human relations training.''.

        (b) <<NOTE: 10 USC 4318 note.>>  Effective Date.--Section 4318 of
    title 10, United States Code, as added by subsection (a), shall apply
    with respect drill sergeant trainee classes that begin after the end of
    the 90-day period beginning on the date of the enactment of this Act.

    Subtitle F--Commission <<NOTE: 10 USC 113 note.>>  on Military Training
    and Gender-Related Issues

    SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

        (a) Establishment.--There is established a Commission on Military
    Training and Gender-Related Issues to review requirements and
    restrictions regarding cross-gender relationships of members of the
    Armed Forces, to review the basic training programs of the Army, Navy,
    Air Force, and Marine Corps, and to make recommendations on improvements
    to those programs, requirements, and restrictions.
        (b) Composition.--(1) The commission shall be composed of 10
    members, appointed as follows:
                (A) Five members shall be appointed jointly by the chairman
            and ranking minority party member of the Committee on National
            Security of the House of Representatives.
                (B) Five members shall be appointed jointly by the chairman
            and ranking minority party member of the Committee on Armed
            Services of the Senate.

        (2) The members of the commission shall choose one of the members to
    serve as chairman.
        (3) All members of the commission shall be appointed not later than
    45 days after the date of the enactment of this Act.
        (c) Qualifications.--Members of the commission shall be appointed
    from among private United States citizens with knowledge and expertise
    in one or more of the following:
                (1) Training of military personnel.
                (2) Social and cultural matters affecting entrance into the
            Armed Forces and affecting military service, military training,
            and military readiness, such knowledge and expertise to have
            been gained through recognized research, policy making and
            practical experience, as demonstrated by retired military
            personnel, members of the reserve components of the Armed

    [[Page 111 STAT. 1751]]

            Forces, representatives from educational organizations, and
            leaders from civilian industry and other Government agencies.
                (3) Factors that define appropriate military job
            qualifications, including physical, mental, and educational
            factors.
                (4) Combat or other theater of war operations.
                (5) Organizational matters.
                (6) Legal matters.
                (7) Management.
                (8) Gender integration matters.

        (d) Appointments.--(1) Members of the commission shall be appointed
    for the life of the commission.
        (2) A vacancy in the membership shall not affect the commission's
    powers, but shall be filled in the same manner as the original
    appointment.

    SEC. 562. DUTIES.

        (a) Functions Relating to Requirements and Restrictions Regarding
    Cross-Gender Relationships.--The commission shall consider issues
    relating to personal relationships of members of the Armed Forces as
    follows:
                (1) Review the laws, regulations, policies, directives, and
            practices that govern personal relationships between men and
            women in the Armed Forces and personal relationships between
            members of the Armed Forces and non-military personnel of the
            opposite sex.
                (2) Assess the extent to which the laws, regulations,
            policies, and directives have been applied consistently
            throughout the Armed Forces without regard to the armed force,
            grade, rank, or gender of the individuals involved.
                (3) Assess the reports of the independent panel, the
            Department of Defense task force, and the review of existing
            guidance on fraternization and adultery that have been required
            by the Secretary of Defense.

        (b) Functions Relating to Gender-Integrated and Gender-Segregated
    Basic Training.--(1) The commission shall review the parts of the
    initial entry training programs of the Army, Navy, Air Force, and Marine
    Corps that constitute the basic training of new recruits (in this
    subtitle referred to as ``basic training''). The review shall include a
    review of the basic training policies and practices of each of those
    services with regard to gender-integrated and gender-segregated basic
    training and, for each of the services, the effectiveness of gender-
    integrated and gender-segregated basic training.
        (2) As part of the review under paragraph (1), the commission shall
    (with respect to each of the services) take the following
    measures:
                (A) Determine how each service defines gender-integration
            and gender-segregation in the context of basic training.
                (B) Determine the historical rationales for the
            establishment and disestablishment of gender-integrated or
            gender-segregated basic training.
                (C) Examine, with respect to each service, the current
            rationale for the use of gender-integrated or gender-segregated
            basic training and the rationale that was current as of the time
            the service made a decision to integrate, or to segregate, basic
            training by gender (or as of the time of the most recent
            decision to continue to use a gender-integrated format or a

    [[Page 111 STAT. 1752]]

            gender-segregated format for basic training), and, as part of
            the examination, evaluate whether at the time of that decision,
            the Secretary of the military department with jurisdiction over
            that service had substantive reason to believe, or has since
            developed data to support, that gender-integrated basic
            training, or gender-segregated basic training, improves the
            readiness or performance of operational units.
                (D) Assess whether the concept of ``training as you will
            fight'' is a valid rationale for gender-integrated basic
            training or whether the training requirements and objectives for
            basic training are sufficiently different from those of
            operational units so that such concept, when balanced against
            other factors relating to basic training, might not be a
            sufficient rationale for gender-integrated basic training.
                (E) Identify the requirements unique to each service that
            could affect a decision by the Secretary concerned to adopt a
            gender-integrated or gender-segregated format for basic training
            and assess whether the format in use by each service has been
            successful in meeting those requirements.
                (F) Assess, with respect to each service, the degree to
            which different standards have been established, or if not
            established are in fact being implemented, for males and females
            in basic training for matters such as physical fitness, physical
            performance (such as confidence and obstacle courses), military
            skills (such as marksmanship and hand-grenade qualifications),
            and nonphysical tasks required of individuals and, to the degree
            that differing standards exist or are in fact being implemented,
            assess the effect of the use of those differing standards.
                (G) Identify the goals that each service has set forth in
            regard to readiness, in light of the gender-integrated or
            gender-segregated format that such service has adopted for basic
            training, and whether that format contributes to the readiness
            of operational units.
                (H) Assess the degree to which performance standards in
            basic training are based on military readiness.
                (I) Evaluate the policies of each of the services regarding
            the assignment of adequate numbers of female drill instructors
            in gender-integrated training units who can serve as role models
            and mentors for female trainees.
                (J) Review Department of Defense and military department
            efforts to objectively measure or evaluate the effectiveness of
            gender-integrated basic training, as compared to gender-
            segregated basic training, particularly with regard to the
            adequacy and scope of the efforts and with regard to the
            relevancy of findings to operational unit requirements, and
            determine whether the Department of Defense and the military
            departments are capable of measuring or evaluating the
            effectiveness of that training format objectively.
                (K) Compare the pattern of attrition in gender-integrated
            basic training units with the pattern of attrition in gender-
            segregated basic training units and assess the relevancy of the
            findings of such comparison.
                (L) Compare the level of readiness and morale of gender-
            integrated basic training units with the level of readiness and
            morale of gender-segregated units, and assess the relevancy of
            the findings of such comparison and the implications, for
            readiness, of any differences found.

    [[Page 111 STAT. 1753]]

                (M) Compare the experiences, policies, and practices of the
            armed forces of other industrialized nations regarding gender-
            integrated training with those of the Army, Navy, Air Force, and
            Marine Corps.
                (N) Review, and take into consideration, the current
            practices, relevant studies, and private sector training
            concepts pertaining to gender-integrated training.
                (O) Assess the feasibility and implications of conducting
            basic training (or equivalent training) at the company level and
            below through separate units for male and female recruits,
            including the costs and other resource commitments required to
            implement and conduct basic training in such a manner and the
            implications for readiness and unit cohesion.
                (P) Assess the feasibility and implications of requiring
            drill instructors for basic training units to be of the same sex
            as the recruits in those units if the basic training were to be
            conducted as described in subparagraph (O).

        (c) Functions Relating to Basic Training Programs
    Generally.--The commission shall review the course objectives,
    structure, and length of the basic training programs of the Army, Navy,
    Air Force, and Marine Corps. The commission shall also review the
    relationship between those basic training objectives and the advanced
    training provided in the initial entry training programs of each of
    those services. As part of that review, the commission shall (with
    respect to each of those services) take the following measures:
                (1) Determine the current end-state objectives established
            for graduates of basic training, particularly in regard to--
                        (A) physical conditioning;
                        (B) technical and physical skills proficiency;
                        (C) knowledge;
                        (D) military socialization, including the
                    inculcation of service values and attitudes; and
                        (E) basic combat operational requirements.
                (2) Assess whether those current end-state objectives, and
            basic training itself, should be modified (in structure, length,
            focus, program of instruction, training methods or otherwise)
            based, in part, on the following:
                        (A) An assessment of the perspectives of operational
                    units on the quality and qualifications of the initial
                    entry training graduates being assigned to those units,
                    considering in particular whether the basic training
                    system produces graduates who arrive in operational
                    units with an appropriate level of skills, physical
                    conditioning, and degree of military socialization to
                    meet unit requirements and needs.
                        (B) An assessment of the demographics, backgrounds,
                    attitudes, experience, and physical fitness of new
                    recruits entering basic training, considering in
                    particular the question of whether, given the entry
                    level demographics, education, and background of new
                    recruits, the basic training systems and objectives are
                    most efficiently and effectively structured and
                    conducted to produce graduates who meet service needs.
                        (C) An assessment of the perspectives of personnel
                    who conduct basic training with regard to measures
                    required to improve basic training.

    [[Page 111 STAT. 1754]]

                (3) Assess the extent to which the initial entry training
            programs of each of the services continue, after the basic
            training phases of the programs, effectively to reinforce and
            advance the military socialization (including the inculcation of
            service values and attitudes), the physical conditioning, and
            the attainment and improvement of knowledge and proficiency in
            fundamental military skills that are begun in basic training.

        (d) Recommendations.--The commission shall prepare--
                (1) with respect to each of the Army, Navy, Air Force, and
            Marine Corps, an evaluation of gender-integrated and gender-
            segregated basic training programs, based upon the review under
            subsection (b);
                (2) recommendations for such changes to the current system
            of basic training as the commission considers warranted; and
                (3) recommendations for such changes to laws, regulations,
            policies, directives, and practices referred to in subsection
            (a)(1) as the commission considers warranted.

        (e) Reports.--(1) Not later than April 15, 1998, the commission
    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 a strategic plan for the work of the commission and the
    activities and initial findings of the commission.
        (2) Not later than September 16, 1998, the commission shall submit a
    final report to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives. The
    final report shall set forth the activities, findings, and
    recommendations of the commission, including any recommendations for
    congressional action and administrative action that the commission
    considers appropriate. The report shall specifically set forth the views
    of the Secretaries of the military departments regarding the matters
    described in subparagraphs (O) and (P) of subsection (b)(2).

    SEC. 563. ADMINISTRATIVE MATTERS.

        (a) Meetings.--(1) The commission shall hold its first meeting not
    later than 30 days after the date on which all members have been
    appointed.
        (2) The commission shall meet upon the call of the chairman.
        (3) A majority of the members of the commission shall constitute a
    quorum, but a lesser number may hold meetings.
        (b) Authority of Individuals To Act for Commission.--Any member or
    agent of the commission may, if authorized by the commission, take any
    action which the commission is authorized to take under this title.
        (c) Powers.--(1) The commission may hold such hearings, sit and act
    at such times and places, take such testimony, and receive such evidence
    as the commission considers advisable to carry out its duties.
        (2) The commission may secure directly from the Department of
    Defense and any other department or agency of the Federal Government
    such information as the commission considers necessary to carry out its
    duties. Upon the request of the chairman of the commission, the head of
    a department or agency shall furnish the requested information
    expeditiously to the commission.
        (3) The commission may use the United States mails in the same
    manner and under the same conditions as other departments and agencies
    of the Federal Government.

    [[Page 111 STAT. 1755]]

        (d) Pay and Expenses of Commission Members.--(1) Each member of the
    commission who is not an employee of the Government shall be paid at a
    rate equal to the daily equivalent of the annual rate of basic pay
    prescribed for level IV of the Executive Schedule under section 5315 of
    title 5, United States Code, for each day (including travel time) during
    which such member is engaged in performing the duties of the commission.
        (2) Members and personnel of the commission may travel on aircraft,
    vehicles, or other conveyances of the Armed Forces when travel is
    necessary in the performance of a duty of the commission except when the
    cost of commercial transportation is less expensive.
        (3) The members of the commission may be allowed travel expenses,
    including per diem in lieu of subsistence, at rates authorized for
    employees of agencies under subchapter I of chapter 57 of title 5,
    United States Code, while away from their homes or regular places of
    business in the performance of services for the commission.
        (4)(A) A member of the commission who is an annuitant otherwise
    covered by section 8344 or 8468 of title 5, United States Code, by
    reason of membership on the commission shall not be subject to the
    provisions of such section with respect to such membership.
        (B) A member of the commission who is a member or former member of a
    uniformed service shall not be subject to the provisions of subsections
    (b) and (c) of section 5532 of such title with respect to membership on
    the commission.
        (e) Staff and Administrative Support.--(1) The chairman of the
    commission may, without regard to civil service laws and regulations,
    appoint and terminate an executive director and up to three additional
    staff members as necessary to enable the commission to perform its
    duties. The chairman of the commission may fix the compensation of the
    executive director and other personnel without regard to the provisions
    of chapter 51, and subchapter III of chapter 53, of title 5, United
    States Code, relating to classification of positions and General
    Schedule pay rates, except that the rate of pay may not exceed the
    maximum rate of pay for grade GS-15 under the General Schedule.
        (2) Upon the request of the chairman of the commission, the head of
    any department or agency of the Federal Government may detail, without
    reimbursement, any personnel of the department or agency to the
    commission to assist in carrying out its duties. A detail of an employee
    shall be without interruption or loss of civil service status or
    privilege.
        (3) The chairman of the commission may procure temporary and
    intermittent services under section 3109(b) of title 5, United States
    Code, at rates for individuals that do not exceed the daily equivalent
    of the annual rate of basic pay prescribed for level IV of the Executive
    Schedule under section 5315 of such title.
        (4) The Secretary of Defense shall furnish to the commission such
    administrative and support services as may be requested by the chairman
    of the commission.

    SEC. 564. TERMINATION OF COMMISSION.

        The commission shall terminate 60 days after the date on which it
    submits the final report under section 562(e)(2).

    [[Page 111 STAT. 1756]]

    SEC. 565. FUNDING.

        (a) From Department of Defense Appropriations.--Upon the request of
    the chairman of the commission, the Secretary of Defense shall make
    available to the commission, out of funds appropriated for the
    Department of Defense, such amounts as the commission may require to
    carry out its duties.
        (b) Period of Availability.--Funds made available to the commission
    shall remain available, without fiscal year limitation, until the date
    on which the commission terminates.

    SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

        After receipt of each report of the commission under section 562(e),
    Congress shall consider the report and, based upon the results of the
    review (and such other matters as Congress considers appropriate),
    consider whether to require by law that the Secretaries of the military
    departments conduct basic training on a gender-segregated or gender-
    integrated basis.

                   Subtitle G--Military Decorations and Awards

    SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED
                FORCES.

        (a) In General.--(1) Chapter 57 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 1131. Purple Heart: limitation to members of the armed forces

        ``The decoration known as the Purple Heart (authorized to be awarded
    pursuant to Executive Order 11016) may only be awarded to a person who
    is a member of the armed forces at the time the person is killed or
    wounded under circumstances otherwise qualifying that person for award
    of the Purple Heart.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``1131. Purple Heart: limitation to members of the armed forces.''.

        (b) <<NOTE: 10 USC 1131 note.>>  Effective Date.--Section 1131 of
    title 10, United States Code, as added by subsection (a), shall apply
    with respect to persons who are killed or wounded after the end of the
    180-day period beginning on the date of the enactment of this Act.

    SEC. 572. <<NOTE: 10 USC 1130 note.>>  ELIGIBILITY FOR ARMED FORCES
                EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATION JOINT
                ENDEAVOR OR OPERATION JOINT GUARD.

        (a) Inclusion of Operations.--For the purpose of determining the
    eligibility of members and former members of the Armed Forces for the
    Armed Forces Expeditionary Medal, the Secretary of Defense shall
    designate participation in Operation Joint Endeavor or Operation Joint
    Guard in the Republic of Bosnia and Herzegovina, and in such other areas
    in the region as the Secretary considers appropriate, as service in an
    area that meets the general requirements for the award of that medal.
        (b) Individual Determination.--The Secretary of the military
    department concerned shall determine whether individual members

    [[Page 111 STAT. 1757]]

    or former members of the Armed Forces who participated in Operation
    Joint Endeavor or Operation Joint Guard meet the individual service
    requirements for award of the Armed Forces Expeditionary Medal as
    established in applicable regulations. A member or former member shall
    be considered to have participated in Operation Joint Endeavor or
    Operation Joint Guard if the member--
                (1) was deployed in the Republic of Bosnia and Herzegovina,
            or in such other area in the region as the Secretary of Defense
            considers appropriate, in direct support of one or both of the
            operations;
                (2) served on board a United States naval vessel operating
            in the Adriatic Sea in direct support of one or both of the
            operations; or
                (3) operated in airspace above the Republic of Bosnia and
            Herzegovina, or in such other area in the region as the
            Secretary of Defense considers appropriate, while the operations
            were in effect.

        (c) Operations Defined.--For purposes of this section:
                (1) The term ``Operation Joint Endeavor'' means operations
            of the United States Armed Forces conducted in the Republic of
            Bosnia and Herzegovina during the period beginning on November
            20, 1995, and ending on December 20, 1996, to assist in
            implementing the General Framework Agreement and Associated
            Annexes, initialed on November 21, 1995, in Dayton, Ohio.
                (2) The term ``Operation Joint Guard'' means operations of
            the United States Armed Forces conducted in the Republic of
            Bosnia and Herzegovina as a successor to Operation Joint
            Endeavor during the period beginning on December 20, 1996, and
            ending on such date as the Secretary of Defense may designate.

    SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO
                SPECIFIED PERSONS.

        (a) Waiver of Time Limitation.--Any limitation established by law or
    policy for the time within which a recommendation for the award of a
    military decoration or award must be submitted shall not apply in the
    case of awards of decorations described in subsections (b), (c), and
    (d), 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) Silver Star Medal.--Subsection (a) applies to the award of the
    Silver Star Medal as follows:
                (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for
            service during World War II.
                (2) To Philip Yolinsky of Hollywood, Florida, for service
            during the Korean Conflict.
                (3) To Robert Norman of Reno, Nevada, for service during
            World War II.

        (c) Navy and Marine Corps Medal.--Subsection (a) applies to the
    award of the Navy and Marine Corps Medal to Gary A. Gruenwald of
    Damascus, Maryland, for service in Tunisia in October 1977.
        (d) Distinguished Flying Cross.--Subsection (a) applies to awards of
    the Distinguished Flying Cross for service during World War II or Korea
    (including multiple awards to the same individual)

    [[Page 111 STAT. 1758]]

    in the case of each individual 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. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR
                AWARD OF SERVICE MEDAL FOR HEROISM.

        (a) Soldier's Medal.--Section 3750(a) of title 10, United States
    Code, is amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The authority in paragraph (1) includes authority to award the
    medal to a member of the Ready Reserve who was not in a duty status
    defined in section 101(d) of this title when the member distinguished
    himself by heroism.''.
        (b) Navy and Marine Corps Medal.--Section 6246 of such title is
    amended--
                (1) by designating the text of the section as subsection
            (a); and
                (2) by adding at the end the following new subsection:

        ``(b) The authority in subsection (a) includes authority to award
    the medal to a member of the Ready Reserve who was not in a duty status
    defined in section 101(d) of this title when the member distinguished
    himself by heroism.''.
        (c) Airman's Medal.--Section 8750(a) of such title is
    amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The authority in paragraph (1) includes authority to award the
    medal to a member of the Ready Reserve who was not in a duty status
    defined in section 101(d) of this title when the member distinguished
    himself by heroism.''.

    SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS
                FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY INTELLIGENCE
                PERSONNEL.

        Section 523(b)(1) of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10 U.S.C. 1130
    note) is amended by striking out ``during the one-year period beginning
    on the date of the enactment of this Act'' and inserting in lieu thereof
    ``during the period beginning on February 10, 1996, and ending on
    February 9, 1998''.

    SEC. 576. <<NOTE: 10 USC 1130 note.>>  ELIGIBILITY OF CERTAIN WORLD WAR
                II MILITARY ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.

        (a) Authority.--A unit decoration may be awarded for any unit or
    other organization of the Armed Forces (such as the Military
    Intelligence Service of the Army) that (1) supported the planning or
    execution of combat operations during World War II primarily through
    unit personnel who were attached to other units of the Armed Forces or
    of other allied armed forces, and (2) is not otherwise eligible for
    award of the decoration by reason of not usually having been deployed as
    a unit in support of such operations.

    [[Page 111 STAT. 1759]]

        (b) Time for Submission of Recommendation.--Any recommendation for
    award of a unit decoration under subsection (a) shall be submitted to
    the Secretary concerned (as defined in section 101(a)(9) of title 10,
    United States Code), or to such other official as the Secretary
    concerned may designate, not later than two years after the date of the
    enactment of this Act.

    SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

        (a) Entitlement.--In the case of Vernon J. Baker, Edward A. Carter,
    Junior, and Charles L. Thomas, who were awarded the Medal of Honor
    pursuant to section 561 of Public Law 104-201 (110 Stat. 2529) and whose
    names have been entered and recorded on the Army, Navy, Air Force, and
    Coast Guard Medal of Honor Roll, the entitlement of those persons to the
    special pension provided under section 1562 of title 38, United States
    Code (and antecedent provisions of law), shall be effective as follows:
                (1) In the case of Vernon J. Baker, for months that begin
            after April 1945.
                (2) In the case of Edward A. Carter, Junior, for months that
            begin after March 1945.
                (3) In the case of Charles L. Thomas, for months that begin
            after December 1944.

        (b) Amount.--The amount of the special pension payable under
    subsection (a) for a month beginning before the date of the enactment of
    this Act shall be the amount of the special pension provided by law for
    that month for persons entered and recorded on the Army, Navy, Air
    Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of
    Honor Roll required by law).
        (c) Payment to Next of Kin.--In the case of a person referred to in
    subsection (a) who died before receiving full payment of the pension
    pursuant to this section, the Secretary of Veterans Affairs shall pay
    the total amount of the accrued pension, upon receipt of application for
    payment within one year after the date of the enactment of this Act, to
    the deceased person's spouse or, if there is no surviving spouse, then
    to the deceased person's children, per stirpes, in equal shares.

                      Subtitle H--Military Justice Matters

    SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT
                ELIGIBILITY FOR PAROLE.

        (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United
    States Code (the Uniform Code of Military Justice), is amended by
    inserting after section 856 (article 56) the following new section
    (article):

    ``Sec. 856a. Art. 56a. Sentence of confinement for life without
                            eligibility for parole

        ``(a) For any offense for which a sentence of confinement for life
    may be adjudged, a court-martial may adjudge a sentence of confinement
    for life without eligibility for parole.
        ``(b) An accused who is sentenced to confinement for life without
    eligibility for parole shall be confined for the remainder of the
    accused's life unless--
                ``(1) the sentence is set aside or otherwise modified as a
            result of--

    [[Page 111 STAT. 1760]]

                        ``(A) action taken by the convening authority, the
                    Secretary concerned, or another person authorized to act
                    under section 860 of this title (article 60); or
                        ``(B) any other action taken during post-trial
                    procedure and review under any other provision of
                    subchapter IX;
                ``(2) the sentence is set aside or otherwise modified as a
            result of action taken by a Court of Criminal Appeals, the Court
            of Appeals for the Armed Forces, or the Supreme Court; or
                ``(3) the accused is pardoned.''.

        (2) The table of sections at the beginning of subchapter VIII of
    such chapter is amended by inserting after the item relating to section
    856 (article 56) the following new item:

    ``856a. 56a. Sentence of confinement for life without eligibility for
               parole.''.

        (b) <<NOTE: 10 USC 856a note.>>  Effective Date.--Section 856a of
    title 10, United States Code (article 56a of the Uniform Code of
    Military Justice), as added by subsection (a), shall be applicable only
    with respect to an offense committed after the date of the enactment of
    this Act.

    SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS SERVING
                LIFE SENTENCE.

        (a) Exclusive Authority To Grant Parole on Appeal of Denial.--
    Section 952 of title 10, United States Code, is amended--
                (1) by inserting ``(a)'' before ``The Secretary''; and
                (2) by adding at the end the following new subsection:

        ``(b) In a case in which parole for an offender serving a sentence
    of confinement for life is denied, only the President or the Secretary
    concerned may grant the offender parole on appeal of that denial. The
    authority to grant parole on appeal in such a case may not be
    delegated.''.
        (b) <<NOTE: 10 USC 952 note.>>  Effective Date.--Subsection (b) of
    section 952 of title 10, United States Code (as added by subsection
    (a)), shall apply only with respect to any decision to deny parole made
    after the date of the enactment of this Act.

                            Subtitle I--Other Matters

    SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

        (a) Investigations.--(1) Part II of subtitle A of title 10, United
    States Code, is amended by inserting after chapter 79 the following new
    chapter:

     ``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

    ``Sec.
    ``1561. Complaints of sexual harassment: investigation by commanding
               officers.

    ``Sec. 1561. Complaints of sexual harassment: investigation by
                            commanding officers

        ``(a) Action on Complaints Alleging Sexual Harassment.--A commanding
    officer or officer in charge of a unit, vessel, facility, or area of the
    Army, Navy, Air Force, or Marine Corps who receives from a member of the
    command or a civilian employee under the supervision of the officer a
    complaint alleging sexual harassment by a member of the armed forces or
    a civilian employee of the

    [[Page 111 STAT. 1761]]

    Department of Defense shall carry out an investigation of the matter in
    accordance with this section.
        ``(b) Commencement of Investigation.--To the extent practicable, a
    commanding officer or officer in charge receiving such a complaint
    shall, within 72 hours after receipt of the complaint--
                ``(1) forward the complaint or a detailed description of the
            allegation to the next superior officer in the chain of command
            who is authorized to convene a general court-martial;
                ``(2) commence, or cause the commencement of, an
            investigation of the complaint; and
                ``(3) advise the complainant of the commencement of the
            investigation.

        ``(c) Duration of Investigation.--To the extent practicable, a
    commanding officer or officer in charge receiving such a complaint shall
    ensure that the investigation of the complaint is completed not later
    than 14 days after the date on which the investigation is commenced.
        ``(d) Report on Investigation.--To the extent practicable, a
    commanding officer or officer in charge receiving such a complaint
    shall--
                ``(1) submit a final report on the results of the
            investigation, including any action taken as a result of the
            investigation, to the next superior officer referred to in
            subsection (b)(1) within 20 days after the date on which the
            investigation is commenced; or
                ``(2) submit a report on the progress made in completing the
            investigation to the next superior officer referred to in
            subsection (b)(1) within 20 days after the date on which the
            investigation is commenced and every 14 days thereafter until
            the investigation is completed and, upon completion of the
            investigation, then submit a final report on the results of the
            investigation, including any action taken as a result of the
            investigation, to that next superior officer.

        ``(e) Sexual Harassment Defined.--In this section, the term `sexual
    harassment' means any of the following:
                ``(1) Conduct (constituting a form of sex discrimination)
            that--
                        ``(A) involves unwelcome sexual advances, requests
                    for sexual favors, and deliberate or repeated offensive
                    comments or gestures of a sexual nature when--
                              ``(i) submission to such conduct is made
                          either explicitly or implicitly a term or
                          condition of a person's job, pay, or career;
                              ``(ii) submission to or rejection of such
                          conduct by a person is used as a basis for career
                          or employment decisions affecting that person; or
                              ``(iii) such conduct has the purpose or effect
                          of unreasonably interfering with an individual's
                          work performance or creates an intimidating,
                          hostile, or offensive working environment; and
                        ``(B) is so severe or pervasive that a reasonable
                    person would perceive, and the victim does perceive, the
                    work environment as hostile or offensive.
                ``(2) Any use or condonation, by any person in a supervisory
            or command position, of any form of sexual behavior to control,
            influence, or affect the career, pay, or job of a member of

    [[Page 111 STAT. 1762]]

            the armed forces or a civilian employee of the Department of
            Defense.
                ``(3) Any deliberate or repeated unwelcome verbal comment or
            gesture of a sexual nature in the workplace by any member of the
            armed forces or civilian employee of the Department of
            Defense.''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part II of subtitle A, of such title are amended by
    inserting after the item relating to chapter 79 the following new item:

    ``80. Miscellaneous Investigation Requirements and Other Duties..1561''.

        (b) <<NOTE: 10 USC 1561 note.>>  Reports.--(1) Not later than
    January 1 of each of 1998 and 1999, each officer receiving a complaint
    forwarded in accordance with section 1561(b) of title 10, United States
    Code, as added by subsection (a), during the preceding year shall submit
    to the Secretary of the military department concerned a report on all
    such complaints and the investigations of such complaints (including the
    results of the investigations, in cases of investigations completed
    during such preceding year).

        (2)(A) Not later than March 1 of each of 1998 and 1999, each
    Secretary receiving a report under paragraph (1) for a year shall submit
    to the Secretary of Defense a report on all such reports so received.
        (B) Not later than April 1 following receipt of a report for a year
    under subparagraph (A), the Secretary of Defense shall transmit to
    Congress all such reports received for the year under subparagraph (A)
    together with the Secretary's assessment of each such report.

    SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO
                GENDER EQUITY IN THE ARMED FORCES.

        (a) Findings.--The Senate makes the following findings:
                (1) In the all-volunteer force, women play an integral role
            in the Armed Forces.
                (2) With increasing numbers of women in the Armed Forces,
            questions arise concerning inequalities, and perceived
            inequalities, between the treatment of men and women in the
            Armed Forces.

        (b) Sense of the Senate.--It is the sense of the Senate that the
    Comptroller General should--
                (1) conduct a study on any inequality, or perception of
            inequality, in the treatment of men and women in the Armed
            Forces that arises out of the statutes and regulations governing
            the Armed Forces; and
                (2) submit to the Senate a report on the study not later
            than one year after the date of the enactment of this Act.

    SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF
                CERTAIN NON-FEDERAL ENTITIES.

        (a) Military Personnel.--(1) Chapter 53 of title 10, United States
    Code, is amended by inserting after section 1032 the following new
    section:

    ``Sec. 1033. Participation in management of specified non-Federal
                            entities: authorized activities

        ``(a) Authorization.--The Secretary concerned may authorize a member
    of the armed forces under the Secretary's jurisdiction

    [[Page 111 STAT. 1763]]

    to serve without compensation as a director, officer, or trustee, or to
    otherwise participate, in the management of an entity designated under
    subsection (b). Any such authorization shall be made on a case-by-case
    basis, for a particular member to participate in a specific capacity
    with a specific designated entity. Such authorization may be made only
    for the purpose of providing oversight and advice to, and coordination
    with, the designated entity, and participation of the member in the
    activities of the designated entity may not extend to participation in
    the day-to-day operations of the entity.
        ``(b) Designated Entities.--(1) The Secretary of Defense, and the
    Secretary of Transportation in the case of the Coast Guard when it is
    not operating as a service in the Navy, shall designate those entities
    for which authorization under subsection (a) may be provided. The list
    of entities so designated may not be revised more frequently than
    semiannually. In making such designations, the Secretary shall designate
    each military welfare society and may designate any other entity
    described in paragraph (3). No other entities may be designated.
        ``(2) In this section, the term `military welfare society' means the
    following:
                ``(A) Army Emergency Relief.
                ``(B) Air Force Aid Society, Inc.
                ``(C) Navy-Marine Corps Relief Society.
                ``(D) Coast Guard Mutual Assistance.

        ``(3) An entity described in this paragraph is an entity that is not
    operated for profit and is any of the following:
                ``(A) An entity that regulates and supports the athletic
            programs of the service academies (including athletic
            conferences).
                ``(B) An entity that regulates international athletic
            competitions.
                ``(C) An entity that accredits service academies and other
            schools of the armed forces (including regional accrediting
            agencies).
                ``(D) An entity that (i) regulates the performance,
            standards, and policies of military health care (including
            health care associations and professional societies), and (ii)
            has designated the position or capacity in that entity in which
            a member of the armed forces may serve if authorized under
            subsection (a).

        ``(c) Publication of Designated Entities and of Authorized
    Persons.--A designation <<NOTE: Federal Register, publication.>>  of an
    entity under subsection (b), and an authorization under subsection (a)
    of a member of the armed forces to participate in the management of such
    an entity, shall be published in the Federal Register.

        ``(d) Regulations.--The Secretary of Defense, and the Secretary of
    Transportation in the case of the Coast Guard when it is not operating
    as a service in the Navy, shall prescribe regulations to carry out this
    section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1032 the
    following new item:

    ``1033. Participation in management of specified non-Federal entities:
               authorized activities.''.

        (b) Civilian Personnel.--(1) Chapter 81 of such title is
    amended by inserting after section 1588 the following new section:

    [[Page 111 STAT. 1764]]

    ``Sec. 1589. Participation in management of specified non-Federal
                            entities: authorized activities

        ``(a) Authorization.--(1) The Secretary concerned may authorize an
    employee described in paragraph (2) to serve without compensation as a
    director, officer, or trustee, or to otherwise participate, in the
    management of an entity designated under subsection (b). Any such
    authorization shall be made on a case-by-case basis, for a particular
    employee to participate in a specific capacity with a specific
    designated entity. Such authorization may be made only for the purpose
    of providing oversight and advice to, and coordination with, the
    designated entity, and participation of the employee in the activities
    of the designated entity may not extend to participation in the day-to-
    day operations of the entity.
        ``(2) Paragraph (1) applies to any employee of the Department of
    Defense or, in the case of the Coast Guard when not operating as a
    service in the Navy, of the Department of Transportation. For purposes
    of this section, the term `employee' includes a civilian officer.
        ``(b) Designated Entities.--The Secretary of Defense, and the
    Secretary of Transportation in the case of the Coast Guard when it is
    not operating as a service in the Navy, shall designate those entities
    for which authorization under subsection (a) may be provided. The list
    of entities so designated may not be revised more frequently than
    semiannually. In making such designations, the Secretary shall designate
    each military welfare society named in paragraph (2) of section 1033(b)
    of this title and may designate any other entity described in paragraph
    (3) of such section. No other entities may be designated.
        ``(c) Publication of Designated Entities and of Authorized
    Persons.--A designation of <<NOTE: Federal Register, publication.>> an
    entity under subsection (b), and an authorization under subsection (a)
    of an employee to participate in the management of such an entity, shall
    be published in the Federal Register.

        ``(d) Civilians Outside the Military Departments.--In this section,
    the term `Secretary concerned' includes the Secretary of Defense with
    respect to employees of the Department of Defense who are not employees
    of a military department.
        ``(e) Regulations.--The Secretary of Defense, and the Secretary of
    Transportation in the case of the Coast Guard when it is not operating
    as a service in the Navy, shall prescribe regulations to carry out this
    section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1588 the
    following new item:

    ``1589. Participation in management of specified non-Federal entities:
               authorized activities.''.

    SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF DEFENSE
                CIVIL MILITARY PROGRAMS.

        Section 2012 of title 10, United States Code, is amended--
                (1) by redesignating subsections (g) and (h) as subsections
            (h) and (i), respectively; and
                (2) by inserting after subsection (f) the following new
            subsection:

        ``(g) Treatment of Member's Participation in Provision of Support or
    Services.--(1) The Secretary of a military department may not require or
    request a member of the armed forces to submit

    [[Page 111 STAT. 1765]]

    for consideration by a selection board (including a promotion board,
    command selection board, or any other kind of selection board) evidence
    of the member's participation in the provision of support and services
    to non-Department of Defense organizations and activities under this
    section or the member's involvement in, or support of, other community
    relations and public affairs activities of the armed forces.
        ``(2) Paragraph (1) does not prevent a selection board from
    considering material submitted voluntarily by a member of the armed
    forces which provides evidence of the participation of that member or
    another member in activities described in that paragraph.''.

    SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL
                MILITARY PROGRAMS.

        (a) Study Required.--The Comptroller General shall conduct a study
    to evaluate the following:
                (1) The nature, extent, and cost to the Department of
            Defense of the support and services being provided by units and
            members of the Armed Forces to non-Department of Defense
            organizations and activities under the authority of section 2012
            of title 10, United States Code.
                (2) The degree to which the Armed Forces are in compliance
            with the requirements of such section in the provision of such
            support and services, especially the requirements that the
            assistance meet specific requirements relative to military
            training and that the assistance provided be incidental to
            military training.
                (3) The degree to which the regulations and procedures for
            implementing such section, as required by subsection (f) of such
            section, are consistent with the requirements of such section.
                (4) The effectiveness of the Secretary of Defense and the
            Secretaries of the military departments in conducting oversight
            of the implementation of such section, and the provision of such
            support and services under such section, to ensure compliance
            with the requirements of such section.

        (b) Submission of Report.--Not later than March 31, 1998, the
    Comptroller General shall submit to Congress a report containing the
    results of the study required by subsection (a).

    SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.

        (a) New Specialty.--Chapter 307 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 3083. Public Affairs Specialty

        ``There is a career field in the Army known as the Public Affairs
    Specialty. Members of the Army with the Public Affairs Specialty are--
                ``(1) the Chief of Public Affairs;
                ``(2) commissioned officers of the Army in the grade of
            major or above who are selected and specifically educated,
            trained, and experienced to perform as professional public
            affairs officers for the remainder of their careers; and
                ``(3) other members of the Army assigned to public affairs
            positions by the Secretary of the Army.''.

    [[Page 111 STAT. 1766]]

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

    ``3083. Public Affairs Specialty.''.

    SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

        (a) In General.--Chapter 41 of title 10, United States Code, is
    amended by inserting after section 713 the following new section:

    ``Sec. 714. Defense attache in France: required grade

        ``An officer may not be selected for assignment to the position of
    defense attache to the United States embassy in France unless the
    officer holds (or is on a promotion list for promotion to) the grade of
    brigadier general or, in the case of the Navy, rear admiral (lower
    half).''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    713 the following new item:

    ``714. Defense attache in France: required grade.''.

    SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

        (a) Study.--The Secretary of the Air Force shall conduct a study of
    the crew requirements for WC-130J aircraft to be procured for assignment
    to the aerial weather reconnaissance mission involving the eyewall
    penetration of tropical cyclones. The study shall include study of the
    anticipated operation of WC-130J aircraft in weather reconnaissance
    missions configured to carry five crewmembers, including a navigator. In
    carrying out the study, the Secretary shall provide for participation by
    members of the Armed Forces currently assigned to units engaged in
    weather reconnaissance operations.
        (b) Report.--The Secretary shall submit to Congress a report on the
    results of the study. The Secretary shall include in the report the
    views of members of the Armed Forces currently assigned to units engaged
    in weather reconnaissance operations who participated in the study. If
    as a result of the study the Secretary determines that there are
    crewmembers assigned to weather reconnaissance duties in excess of the
    crew requirements that will be applicable for WC-130J aircraft, the
    Secretary shall include in the report a plan for retraining or
    reassignment of those crewmembers. The study shall be submitted not
    later than September 30, 1998.

    SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO
                DEPARTMENT OF DEFENSE.

        (a) Applicability to Department of Defense Civilian Employees and
    Contractor Employees.--(1) Section 1501 of title 10, United States Code,
    is amended--
                (A) by striking out subsection (c) and inserting in lieu
            thereof the following:

        ``(c) Covered Persons.--(1) Section 1502 of this title applies in
    the case of any member of the armed forces on active duty--
                ``(A) who becomes involuntarily absent as a result of a
            hostile action or under circumstances suggesting that the
            involuntary absence is a result of a hostile action; and
                ``(B) whose status is undetermined or who is unaccounted
            for.

    [[Page 111 STAT. 1767]]

        ``(2) Section 1502 of this title applies in the case of any other
    person who is a citizen of the United States and a civilian officer or
    employee of the Department of Defense or (subject to paragraph (3)) an
    employee of a contractor of the Department of Defense--
                ``(A) who serves in direct support of, or accompanies, the
            armed forces in the field under orders and becomes involuntarily
            absent as a result of a hostile action or under circumstances
            suggesting that the involuntary absence is a result of a hostile
            action; and
                ``(B) whose status is undetermined or who is unaccounted
            for.

        ``(3) The Secretary of Defense shall determine, with regard to a
    pending or ongoing military operation, the specific employees, or groups
    of employees, of contractors of the Department of Defense to be
    considered to be covered by this subsection.''; and
                (B) by adding at the end the following new subsection:

        ``(f) Secretary Concerned.--In this chapter, the term `Secretary
    concerned' includes, in the case of a civilian officer or employee of
    the Department of Defense or an employee of a contractor of the
    Department of Defense, the Secretary of the military department or head
    of the element of the Department of Defense employing the officer or
    employee or contracting with the contractor, as the case may be.''.
        (2) Section 1503(c) of such title is amended--
                (A) in paragraph (1), by striking out ``one military
            officer'' and inserting in lieu thereof ``one individual
            described in paragraph (2)'';
                (B) by redesignating paragraphs (2) and (3) as paragraphs
            (3) and (4), respectively; and
                (C) by inserting after paragraph (1) the following new
            paragraph (2):

        ``(2) An individual referred to in paragraph (1) is the following:
                ``(A) A military officer, in the case of an inquiry with
            respect to a member of the armed forces.
                ``(B) A civilian, in the case of an inquiry with respect to
            a civilian employee of the Department of Defense or of a
            contractor of the Department of Defense.''.

        (3) Section 1504(d) of such title is amended--
                (A) in paragraph (1), by striking out ``who are'' and all
            that follows in that paragraph and inserting in lieu thereof
            ``as follows:
                ``(A) In the case of a board that will inquire into the
            whereabouts and status of one or more members of the armed
            forces (and no civilians described in subparagraph (B)), the
            board shall be composed of officers having the grade of major or
            lieutenant commander or above.
                ``(B) In the case of a board that will inquire into the
            whereabouts and status of one or more civilian employees of the
            Department of Defense or contractors of the Department of
            Defense (and no members of the armed forces), the board shall be
            composed of--
                        ``(i) not less than three employees of the
                    Department of Defense whose rate of annual pay is equal
                    to or greater than the rate of annual pay payable for
                    grade GS-13 of the General Schedule under section 5332
                    of title 5; and

    [[Page 111 STAT. 1768]]

                        ``(ii) such members of the armed forces as the
                    Secretary considers advisable.
                ``(C) In the case of a board that will inquire into the
            whereabouts and status of both one or more members of the armed
            forces and one or more civilians described in subparagraph (B)--
                        ``(i) the board shall include at least one officer
                    described in subparagraph (A) and at least one employee
                    of the Department of Defense described in subparagraph
                    (B)(i); and
                        ``(ii) the ratio of such officers to such employees
                    on the board shall be roughly proportional to the ratio
                    of the number of members of the armed forces who are
                    subjects of the board's inquiry to the number of
                    civilians who are subjects of the board's inquiry.'';
                    and
                (B) in paragraph (4), by striking out ``section 1503(c)(3)''
            and inserting in lieu thereof ``section 1503(c)(4)''.

        (4) Paragraph (1) of section 1513 of such title is amended to read
    as follows:
                ``(1) The term `missing person' means--
                        ``(A) a member of the armed forces on active duty
                    who is in a missing status; or
                        ``(B) a civilian employee of the Department of
                    Defense or an employee of a contractor of the Department
                    of Defense who serves in direct support of, or
                    accompanies, the armed forces in the field under orders
                    and who is in a missing status.
            Such term includes an unaccounted for person described in
            section 1509(b) of this title, under the circumstances specified
            in the last sentence of section 1509(a) of this title.''.

        (b) Transmission to Theater Component Commander of Advisory Copy of
    Missing Person Report.--(1) Section 1502 of such title is amended--
                (A) by redesignating subsection (b) as subsection (c); and
                (B) by inserting after subsection (a) the following new
            subsection (b):

        ``(b) Transmission of Advisory Copy to Theater Component
    Commander.--When transmitting a report under subsection (a)(2)
    recommending that a person be placed in a missing status, the commander
    transmitting that report shall transmit an advisory copy of the report
    to the theater component commander with jurisdiction over the missing
    person.''.
        (2) Section 1513 of such title is amended by adding at the end the
    following new paragraph:
                ``(8) The term `theater component commander' means, with
            respect to any of the combatant commands, an officer of any of
            the armed forces who (A) is commander of all forces of that
            armed force assigned to that combatant command, and (B) is
            directly subordinate to the commander of the combatant
            command.''.

        (c) Information To Accompany Recommendation of Status of Death.--
    Section 1507(b) of such title is amended by adding at the end the
    following new paragraphs:
                ``(3) A description of the location of the body, if
            recovered.
                ``(4) If the body has been recovered and is not identifiable
            through visual means, a certification by a forensic pathologist

    [[Page 111 STAT. 1769]]

            that the body recovered is that of the missing person. In
            determining whether to make such a certification, the forensic
            pathologist shall consider, as determined necessary by the
            Secretary of the military department concerned, additional
            evidence and information provided by appropriate specialists in
            forensic medicine or other appropriate medical sciences.''.

        (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and
    1504(f)(1) of such title are amended by adding at the end the following:
    ``The identity of counsel appointed under this paragraph for a missing
    person shall be made known to the missing person's primary next of kin
    and any other previously designated person of the person.''.
        (2) Section 1503(f)(4) of such title is amended by adding at the end
    the following: ``The primary next of kin of a missing person and any
    other previously designated person of the missing person shall have the
    right to submit information to the missing person's counsel relative to
    the disappearance or status of the missing person.''.
        (e) Scope of Preenactment Review.--(1) Section 1509 of such title is
    amended by striking out subsection (a) and inserting in lieu thereof the
    following:
        ``(a) Review of Status.--(1) If new information (as defined in
    paragraph (2)) is found or received that may be related to one or more
    unaccounted for persons described in subsection (b) (whether or not such
    information specifically relates (or may specifically relate) to any
    particular such unaccounted for person), that information shall be
    provided to the Secretary of Defense. Upon receipt of such information,
    the Secretary shall ensure that the information is treated under
    paragraphs (2) and (3) of section 1505(c) of this title and under
    section 1505(d) of this title in the same manner as information received
    under paragraph (1) of section 1505(c) of this title. For purposes of
    the applicability of other provisions of this chapter in such a case,
    each such unaccounted for person to whom the new information may be
    related shall be considered to be a missing person.
        ``(2) For purposes of this subsection, new information is
    information that is credible and that--
                ``(A) is found or received after the date of the enactment
            of the National Defense Authorization Act for Fiscal Year 1998
            by a United States intelligence agency, by a Department of
            Defense agency, or by a person specified in section 1504(g) of
            this title; or
                ``(B) is identified after the date of the enactment of the
            National Defense Authorization Act for Fiscal Year 1998 in
            records of the United States as information that could be
            relevant to the case of one or more unaccounted for persons
            described in subsection (b).''.

        (2) Such section is further amended by adding at the end the
    following new subsection:
        ``(d) Establishment of Personnel Files for Korean Conflict Cases.--
    The Secretary of Defense shall ensure that a personnel file is
    established for each unaccounted for person who is described in
    subsection (b)(1) if the Secretary possesses information relevant to
    that person's status. In the case of a person described in subsection
    (b)(1) for whom a personnel file does not exist, the Secretary shall
    create a personnel file for such person upon receipt of new information
    as provided in subsection (a). Each such file

    [[Page 111 STAT. 1770]]

    shall be handled in accordance with, and subject to the provisions of,
    section 1506 of this title in the same manner as applies to the file of
    a missing person.''.
        (f) Withholding of Classified Information.--Section 1506(b) of such
    title is amended--
                (1) by inserting ``(1)'' before ``The Secretary'';
                (2) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B), respectively; and
                (3) by adding at the end the following:

        ``(2) If classified information withheld under this subsection
    refers to one or more unnamed missing persons, the Secretary shall
    ensure that notice of that withheld information, and notice of the date
    of the most recent review of the classification of that withheld
    information, is made reasonably accessible to the primary next of kin,
    members of the immediate family, and the previously designated
    person.''.
        (g) Withholding of Privileged Information.--Section 1506(d) of such
    title is amended--
                (1) in paragraph (2)--
                        (A) by inserting ``or about unnamed missing
                    persons'' in the first sentence after ``the debriefing
                    report'';
                        (B) by striking out ``the missing person'' in the
                    second sentence and inserting in lieu thereof ``each
                    missing person named in the debriefing report''; and
                        (C) by adding at the end the following new sentence:
                    ``Any information contained in the extract of the
                    debriefing report that pertains to unnamed missing
                    persons shall be made reasonably accessible to the
                    primary next of kin, members of the immediate family,
                    and the previously designated person.''; and
                (2) in paragraph (3), by inserting ``, or part of a
            debriefing report,'' after ``a debriefing report''.

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Increase in basic pay for fiscal year 1998.
    Sec. 602. Reform of basic allowance for subsistence.
    Sec. 603. Consolidation of basic allowance for quarters, variable
               housing allowance, and overseas housing allowances.
    Sec. 604. Revision of authority to adjust compensation necessitated by
               reform of subsistence and housing allowances.
    Sec. 605. Protection of total compensation of members while performing
               certain duty.

               Subtitle B--Bonuses and Special and Incentive Pays

    Sec. 611. One-year extension of certain bonuses and special pay
               authorities for
               reserve forces.
    Sec. 612. One-year extension of certain bonuses and special pay
               authorities for nurse officer candidates, registered nurses,
               and nurse anesthetists.
    Sec. 613. One-year extension of authorities relating to payment of other
               bonuses and special pays.
    Sec. 614. Increase in minimum monthly rate of hazardous duty incentive
               pay for certain members.
    Sec. 615. Increase in aviation career incentive pay.
    Sec. 616. Modification of aviation officer retention bonus.
    Sec. 617. Availability of multiyear retention bonus for dental officers.
    Sec. 618. Increase in variable and additional special pays for certain
               dental officers.
    Sec. 619. Availability of special pay for duty at designated hardship
               duty locations.

    [[Page 111 STAT. 1771]]

    Sec. 620. Definition of sea duty for purposes of career sea pay.
    Sec. 621. Modification of Selected Reserve reenlistment bonus.
    Sec. 622. Modification of Selected Reserve enlistment bonus for former
               enlisted members.
    Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard
               Reserve.
    Sec. 624. Increase in special pay and bonuses for nuclear-qualified
               officers.
    Sec. 625. Provision of bonuses in lieu of special pay for enlisted
               members extending tours of duty at designated locations
               overseas.
    Sec. 626. Increase in amount of family separation allowance.
    Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

                Subtitle C--Travel and Transportation Allowances

    Sec. 631. Travel and transportation allowances for dependents before
               approval of member's court-martial sentence.
    Sec. 632. Dislocation allowance.

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

    Sec. 641. One-year opportunity to discontinue participation in Survivor
               Benefit Plan.
    Sec. 642. Time in which change in survivor benefit coverage from former
               spouse to spouse may be made.
    Sec. 643. Review of Federal former spouse protection laws.
    Sec. 644. Annuities for certain military surviving spouses.
    Sec. 645. Administration of benefits for so-called minimum income
               widows.

                            Subtitle E--Other Matters

    Sec. 651. Loan repayment program for commissioned officers in certain
               health
               professions.
    Sec. 652. Conformance of NOAA commissioned officers separation pay to
               separation pay for members of other uniformed services.
    Sec. 653. Eligibility of Public Health Service officers and NOAA
               commissioned corps officers for reimbursement of adoption
               expenses.
    Sec. 654. Payment of back quarters and subsistence allowances to World
               War II veterans who served as guerrilla fighters in the
               Philippines.
    Sec. 655. Subsistence of members of the Armed Forces above the poverty
               level.

                         Subtitle A--Pay and Allowances

    SEC. 601. <<NOTE: 37 USC 1009.>>  INCREASE IN BASIC PAY FOR FISCAL YEAR
                1998.

        (a) Waiver of Section 1009 Adjustment.--The adjustment, to become
    effective during fiscal year 1998, required by section 1009 of title 37,
    United States Code (as amended by section 604), in the rate of monthly
    basic pay authorized members of the uniformed services by section 203(a)
    of such title shall not be made.
        (b) Increase in Basic Pay.--Effective <<NOTE: Effective date.>> on
    January 1, 1998, the rates of basic pay of members of the uniformed
    services are increased by 2.8 percent.

    SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

        (a) Entitlement to Allowance.--Section 402 of title 37, United
    States Code, is amended to read as follows:

    ``Sec. 402. Basic allowance for subsistence

        ``(a) Entitlement to Allowance.--(1) Except as provided in paragraph
    (2) or otherwise provided by law, each member of a uniformed service who
    is entitled to basic pay is entitled to a basic allowance for
    subsistence as set forth in this section.
        ``(2) An enlisted member is not entitled to the basic allowance for
    subsistence during basic training.
        ``(b) Rates of Allowance Based on Food Costs.--(1) The monthly rate
    of basic allowance for subsistence to be in effect for an enlisted
    member for a year (beginning on January 1 of that year) shall be the
    amount that is halfway between the following

    [[Page 111 STAT. 1772]]

    amounts, which are determined by the Secretary of Agriculture as of
    October 1 of the preceding year:
                ``(A) The amount equal to the monthly cost of a moderate-
            cost food plan for a male in the United States who is between 20
            and 50 years of age.
                ``(B) The amount equal to the monthly cost of a liberal food
            plan for a male in the United States who is between 20 and 50
            years of age.

        ``(2) The monthly rate of basic allowance for subsistence to be in
    effect for an officer for a year (beginning on January 1 of that year)
    shall be the amount equal to the monthly rate of basic allowance for
    subsistence in effect for officers for the preceding year, increased by
    the same percentage by which the rate of basic allowance for subsistence
    for enlisted members for the preceding year is increased effective on
    such January 1.
        ``(c) Advance Payment.--The allowance to an enlisted member may be
    paid in advance for a period of not more than three months.
        ``(d) Special Rule for Members Authorized to Mess Separately.--(1)
    In areas prescribed by the Secretary of Defense, and the Secretary of
    Transportation with respect to the Coast Guard when it is not operating
    as a service in the Navy, an enlisted member described in paragraph (2)
    is entitled to not more than the pro rata allowance established under
    subsection (b)(1) for each meal the member buys from a source other than
    a messing facility of the United States.
        ``(2) An enlisted member referred to in paragraph (1) is a member
    who is granted permission to mess separately and whose duties require
    the member to buy at least one meal from a source other than a messing
    facility of the United States.
        ``(e) Policies on Use of Dining and Messing Facilities.--The
    Secretary of Defense, in consultation with the Secretaries concerned,
    shall prescribe policies regarding use of dining and field messing
    facilities of the uniformed services.
        ``(f) Regulations.--(1) The Secretary of Defense shall prescribe
    regulations for the administration of this section. Before prescribing
    the regulations, the Secretary shall consult with each Secretary
    concerned.
        ``(2) The regulations shall include the specific rates of basic
    allowance for subsistence required by subsection (b).''.
        (b) Conforming Amendments.--(1) Section 404 of title 37, United
    States Code, is amended--
                (A) by striking out subsection (g); and
                (B) by redesignating subsections (h), (i), (j), and (k) as
            subsections (g), (h), (i), and (j), respectively.

        (2) Section 6081(a) of title 10, United States Code, is amended by
    striking out ``Except'' and all that follows through ``subsistence,
    each'' and inserting in lieu thereof ``Each''.
        (c) <<NOTE: 37 USC 402 note.>>  Transitional Authority To Provide
    Basic Allowance for Subsistence.--
                (1) Transitional authority.--Notwithstanding section 402 of
            title 37, United States Code, as amended by subsection (a),
            during the period beginning on January 1, 1998, and ending on
            the date determined under paragraph (2)--
                        (A) the basic allowance for subsistence shall not be
                    paid under such section 402;

    [[Page 111 STAT. 1773]]

                        (B) a member of the uniformed services is entitled
                    to the basic allowance for subsistence only as provided
                    in subsection (d);
                        (C) an enlisted member of the uniformed services may
                    be paid a partial basic allowance for subsistence as
                    provided in subsection (e); and
                        (D) the rates of the basic allowance for subsistence
                    are those rates determined under subsection (f).
                (2) Termination of transitional authority.--The transitional
            authority provided under paragraph (1) shall terminate on the
            first day of the month immediately following the first month for
            which the monthly equivalent of the rate of basic allowance for
            subsistence payable to enlisted members of the uniformed
            services (when permission to mess separately is granted), as
            determined under subsection (f)(2), is equal to or is exceeded
            by the amount that, except for paragraph (1)(A), would otherwise
            be the monthly rate of basic allowance for subsistence for
            enlisted members under section 402(b)(1) of title 37, United
            States Code, as amended by subsection (a).

        (d) <<NOTE: 37 USC 402 note.>>  Transitional Entitlement to
    Allowance.--
                (1) Enlisted members.--
                        (A) Types of entitlement.--An enlisted member is
                    entitled to the basic allowance for subsistence, on a
                    daily basis, of under one or more of the following
                    circumstances:
                              (i) When rations in kind are not available.
                              (ii) When permission to mess separately is
                          granted.
                              (iii) When assigned to duty under emergency
                          conditions where no messing facilities of the
                          United States are available.
                        (B) Other entitlement circumstances.--An enlisted
                    member is entitled to the allowance while on an
                    authorized leave of absence, while confined in a
                    hospital, or while performing travel under orders away
                    from the member's designated post of duty other than
                    field duty or sea duty (as defined in regulations
                    prescribed by the Secretary of Defense). For purposes of
                    the preceding sentence, a member shall not be considered
                    to be performing travel under orders away from his
                    designated post of duty if such member--
                              (i) is an enlisted member serving the member's
                          first tour of active duty;
                              (ii) has not actually reported to a permanent
                          duty station pursuant to orders directing such
                          assignment; and
                              (iii) is not actually traveling between
                          stations pursuant to orders directing a change of
                          station.
                        (C) Advance payment.--The allowance to an enlisted
                    member, when authorized, may be paid in advance for a
                    period of not more than three months.
                (2) Officers.--An officer of a uniformed service who is
            entitled to basic pay is, at all times, entitled to the basic
            allowances for subsistence. An aviation cadet of the Navy, Air
            Force, Marine Corps, or Coast Guard is entitled to the same
            basic allowance for subsistence as is provided for an officer of
            the Navy, Air Force, Marine Corps, or Coast Guard, respectively.

        (e) <<NOTE: 37 USC 402 note.>>  Transitional Authority for Partial
    Allowance.--

    [[Page 111 STAT. 1774]]

                (1) Enlisted members furnished subsistence in kind.--The
            Secretary of Defense may provide in regulations for an enlisted
            member of a uniformed service to be paid a partial basic
            allowance for subsistence when--
                        (A) rations in kind are available to the member;
                        (B) the member is not granted permission to mess
                    separately; or
                        (C) the member is assigned to duty under emergency
                    conditions where messing facilities of the United States
                    are available.
                (2) Monthly payment.--Any partial basic allowance for
            subsistence authorized under paragraph (1) shall be calculated
            on a daily basis and paid on a monthly basis.

        (f) <<NOTE: 37 USC 402 note.>>  Transitional Rates.--
                (1) Allowance for officers.--The monthly rate of basic
            allowance for subsistence for a year (beginning on January 1 of
            that year) that is payable to officers of the uniformed services
            shall be the amount that is equal to 101 percent of the rate of
            basic allowance for subsistence that was payable to officers of
            the uniformed services for the preceding year.
                (2) Allowance for enlisted member with permission to mess
            separately.--The monthly rate of basic allowance for subsistence
            for a year (beginning on January 1 of that year) that is payable
            to an enlisted member of the uniformed services entitled to the
            allowance under subsection (d)(1) shall be the amount that is
            equal to 101 percent of the rate of basic allowance for
            subsistence that was in effect for similarly situated enlisted
            members of the uniformed services for the preceding year.
                (3) Partial allowance for other enlisted members.--The
            monthly rate of any partial basic allowance for subsistence for
            a year (beginning on January 1 of that year) payable to an
            enlisted member of the uniformed services eligible for the
            allowance under the regulations prescribed under subsection
            (e)(1) shall be the amount equal to the lesser of the following:
                        (A) The sum of--
                              (i) the partial basic allowance for
                          subsistence in effect for the preceding year; and
                              (ii) the amount equal to the difference, if
                          any, between--
                                        (I) the monthly equivalent of the
                                    rate of basic allowance for subsistence
                                    that was in effect for the preceding
                                    year for members of the uniformed
                                    services above grade E-1 (when
                                    permission to mess separately is
                                    granted), increased by the same
                                    percentage by which the rates of basic
                                    pay for members of the uniformed
                                    services is increased for the current
                                    year; and
                                        (II) the amount equal to 101 percent
                                    of the monthly equivalent of the rate of
                                    basic allowance for subsistence that was
                                    in effect for the previous year for
                                    members of the uniformed services above
                                    grade E-1 (when permission to mess
                                    separately is granted),
                          with the amount so determined under this clause
                          multiplied by the number of members estimated to
                          be entitled to receive basic allowance for
                          subsistence

    [[Page 111 STAT. 1775]]

                          under subsection (d) for the current year and then
                          divided by the number of members estimated to be
                          eligible for the partial allowance under the
                          regulations prescribed under subsection (e)(1) for
                          that year.
                        (B) The amount equal to the difference between--
                              (i) the amount that, except for subsection
                          (c)(1)(A), would otherwise be the monthly rate of
                          basic allowance for subsistence for enlisted
                          members under section 402(b)(1) of title 37,
                          United States Code; and
                              (ii) the amount equal to the monthly
                          equivalent of the value of a daily ration, as
                          determined by the Under Secretary of Defense
                          (Comptroller) as of October 1 of the preceding
                          year.

        (g) <<NOTE: 37 USC 402 note.>>  Effective Date.--This section and
    the amendments made by this section shall take effect on January 1,
    1998.

    SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE
                HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

        (a) Consolidation of Allowances.--Section 403 of title 37, United
    States Code, is amended to read as follows:

    ``Sec. 403. Basic allowance for housing

        ``(a) General Entitlement.--(1) Except as otherwise provided by law,
    a member of a uniformed service who is entitled to basic pay is entitled
    to a basic allowance for housing at the monthly rates prescribed under
    this section or another provision of law with regard to the applicable
    component of the basic allowance for housing. The amount of the basic
    allowance for housing for a member will vary according to the pay grade
    in which the member is assigned or distributed for basic pay purposes,
    the dependency status of the member, and the geographic location of the
    member. The basic allowance for housing may be paid in advance.
        ``(2) A member of a uniformed service with dependents is not
    entitled to a basic allowance for housing as a member with dependents
    unless the member makes a certification to the Secretary concerned
    indicating the status of each dependent of the member. The certification
    shall be made in accordance with regulations prescribed by the Secretary
    of Defense.
        ``(b) Basic Allowance for Housing Inside the United States.--(1) The
    Secretary of Defense shall determine the costs of adequate housing in a
    military housing area in the United States for all members of the
    uniformed services entitled to a basic allowance for housing in that
    area. The Secretary shall base the determination upon the costs of
    adequate housing for civilians with comparable income levels in the same
    area.
        ``(2) Subject to paragraph (3), the monthly amount of a basic
    allowance for housing for an area of the United States for a member of a
    uniformed service is equal to the difference between--
                ``(A) the monthly cost of adequate housing in that area, as
            determined by the Secretary of Defense, for members of the
            uniformed services serving in the same pay grade and with the
            same dependency status as the member; and
                ``(B) 15 percent of the national average monthly cost of
            adequate housing in the United States, as determined by the
            Secretary, for members of the uniformed services serving in

    [[Page 111 STAT. 1776]]

            the same pay grade and with the same dependency status as the
            member.

        ``(3) The rates of basic allowance for housing shall be reduced as
    necessary to comply with this paragraph. The total amount that may be
    paid for a fiscal year for the basic allowance for housing under this
    subsection is the product of--
                ``(A) the total amount authorized to be paid for such
            allowance for the preceding fiscal year (as adjusted under
            paragraph (5)); and
                ``(B) a fraction--
                        ``(i) the numerator of which is the index of the
                    national average monthly cost of housing for June of the
                    preceding fiscal year; and
                        ``(ii) the denominator of which is the index of the
                    national average monthly cost of housing for June of the
                    fiscal year before the preceding fiscal year.

        ``(4) An adjustment in the rates of the basic allowance for housing
    under this subsection as a result of the Secretary's redetermination of
    housing costs in an area shall take effect on the same date as the
    effective date of the next increase in basic pay under section 1009 of
    this title or other provision of law.
        ``(5) In making a determination under paragraph (3) for a fiscal
    year, the amount authorized to be paid for the preceding fiscal year for
    the basic allowance for housing shall be adjusted to reflect changes
    during the year for which the determination is made in the number, grade
    distribution, geographic distribution in the United States, and
    dependency status of members of the uniformed services entitled to the
    allowance from the number of such members during the preceding fiscal
    year.
        ``(6) So long as a member of a uniformed service retains
    uninterrupted eligibility to receive a basic allowance for housing
    within an area of the United States, the monthly amount of the allowance
    for the member may not be reduced as a result of changes in housing
    costs in the area, changes in the national average monthly cost of
    housing, or the promotion of the member.
        ``(7) In the case of a member without dependents who is assigned to
    duty inside the United States, the location or the circumstances of
    which make it necessary that the member be reassigned under the
    conditions of low-cost or no-cost permanent change of station or
    permanent change of assignment, the member may be treated as if the
    member were not reassigned if the Secretary concerned determines that it
    would be inequitable to base the member's entitlement to, and amount of,
    a basic allowance for housing on the cost of housing in the area to
    which the member is reassigned.
        ``(c) Basic Allowance for Housing Outside the United States.--(1)
    The Secretary of Defense may prescribe an overseas basic allowance for
    housing for a member of a uniformed service who is on duty outside of
    the United States. The Secretary shall establish the basic allowance for
    housing under this subsection on the basis of housing costs in the
    overseas area in which the member is assigned.
        ``(2) So long as a member of a uniformed service retains
    uninterrupted eligibility to receive a basic allowance for housing in an
    overseas area and the actual monthly cost of housing for the member is
    not reduced, the monthly amount of the allowance in an area outside the
    United States may not be reduced as a result

    [[Page 111 STAT. 1777]]

    of changes in housing costs in the area or the promotion of the member.
    The monthly amount of the allowance may be adjusted to reflect changes
    in currency rates.
        ``(d) Basic Allowance for Housing When Dependents Are Unable To
    Accompany Member.--(1) A member of a uniformed service with dependents
    who is on permanent duty at a location described in paragraph (2) is
    entitled to a family separation basic allowance for housing under this
    subsection at a monthly rate equal to the rate of the basic allowance
    for housing established under subsection (b) or the overseas basic
    allowance for housing established under subsection (c), whichever
    applies to that location, for members in the same grade at that location
    without dependents.
        ``(2) A permanent duty location referred to in paragraph (1) is a
    location--
                ``(A) to which the movement of the member's dependents is
            not authorized at the expense of the United States under section
            406 of this title, and the member's dependents do not reside at
            or near the location; and
                ``(B) at which quarters of the United States are not
            available for assignment to the member.

        ``(3) In the case of a member with dependents who is assigned to
    duty at a location or under circumstances that, as determined by the
    Secretary concerned, require the member's dependents to reside at a
    different location, the member shall receive a basic allowance for
    housing, as provided in subsection (a) or (b), as if the member were
    assigned to duty in the area in which the dependents reside, regardless
    of whether the member resides in quarters of the United States or is
    also entitled to a family separation basic allowance for housing by
    reason of paragraph (1).
        ``(4) The family separation basic allowance for housing under this
    subsection shall be in addition to any other allowance or per diem that
    the member is otherwise entitled to receive under this title. A member
    may receive a basic allowance for housing under both paragraphs (1) and
    (3).
        ``(e) Effect of Assignment to Quarters.--(1) Except as otherwise
    provided by law, a member of a uniformed service who is assigned to
    quarters of the United States or a housing facility under the
    jurisdiction of a uniformed service appropriate to the grade, rank, or
    rating of the member and adequate for the member and dependents of the
    member, if with dependents, is not entitled to a basic allowance for
    housing.
        ``(2) A member without dependents who is in a pay grade above pay
    grade E-6 and who is assigned to quarters in the United States or a
    housing facility under the jurisdiction of a uniformed service,
    appropriate to the grade or rank of the member and adequate for the
    member, may elect not to occupy those quarters and instead to receive
    the basic allowance for housing prescribed for the member's pay grade by
    this section.
        ``(3) A member without dependents who is in pay grade E-6 and who is
    assigned to quarters of the United States that do not meet the minimum
    adequacy standards established by the Secretary of Defense for members
    in such pay grade, or to a housing facility under the jurisdiction of a
    uniformed service that does not meet such standards, may elect not to
    occupy such quarters or facility and instead to receive the basic
    allowance for housing prescribed for the member's pay grade under this
    section.

    [[Page 111 STAT. 1778]]

        ``(4) The Secretary concerned may deny the right to make an election
    under paragraph (2) or (3) if the Secretary determines that the exercise
    of such an election would adversely affect a training mission, military
    discipline, or military readiness.
        ``(5) A member with dependents who is assigned to quarters of the
    United States or a housing facility under the jurisdiction of a
    uniformed service may be paid the basic allowance for housing if,
    because of orders of competent authority, the dependents are prevented
    from occupying those quarters.
        ``(f) Ineligibility During Initial Field Duty or Sea Duty.--(1) A
    member of a uniformed service without dependents who makes a permanent
    change of station for assignment to a unit conducting field operations
    is not entitled to a basic allowance for housing while on that initial
    field duty unless the commanding officer of the member certifies that
    the member was necessarily required to procure quarters at the member's
    expense.
        ``(2)(A) Except as provided in subparagraphs (B) and (C), a member
    of a uniformed service without dependents who is in a pay grade below
    pay grade E-6 is not entitled to a basic allowance for housing while the
    member is on sea duty.
        ``(B) Under regulations presc <<NOTE: Regulations.>> ribed by the
    Secretary concerned, the Secretary may authorize the payment of a basic
    allowance for housing to a member of a uniformed service without
    dependents who is serving in pay grade E-5 and is assigned to sea duty.
    In prescribing regulations under this subparagraph, the Secretary
    concerned shall consider the availability of quarters for members
    serving in pay grade E-5.

        ``(C) Notwithstanding section 421 of this title, two members of the
    uniformed services in a pay grade below pay grade E-6 who are married to
    each other, have no other dependents, and are simultaneously assigned to
    sea duty are jointly entitled to one basic allowance for housing during
    the period of such simultaneous sea duty. The amount of the allowance
    shall be based on the without dependents rate for the pay grade of the
    senior member of the couple. However, this subparagraph shall not apply
    to a couple if one or both of the members are entitled to a basic
    allowance for housing under subparagraph (B).
        ``(3) The Secretary of Defense, and the Secretary of Transportation
    with respect to the Coast Guard when it is not operating as a service in
    the Department of the Navy, shall prescribe regulation defining the
    terms `field duty' and `sea duty' for purposes of this section.
        ``(g) Reserve Members.--(1) A member of a reserve component without
    dependents who is called or ordered to active duty in support of a
    contingency operation, or a retired member without dependents who is
    ordered to active duty under section 688(a) of title 10 in support of a
    contingency operation, may not be denied a basic allowance for housing
    if, because of that call or order, the member is unable to continue to
    occupy a residence--
                ``(A) which is maintained as the primary residence of the
            member at the time of the call or order; and
                ``(B) which is owned by the member or for which the member
            is responsible for rental payments.

        ``(2) Paragraph (1) shall not apply if the member is authorized
    transportation of household goods under section 406 of this title as
    part of the call or order to active duty described in such paragraph.

    [[Page 111 STAT. 1779]]

        ``(3) The Secretary of Defense shall establish a rate of basic
    allowance for housing to be paid to a member of a reserve component
    while the member serves on active duty under a call or order to active
    duty specifying a period of less than 140 days, unless the call or order
    to active duty is in support of a contingency operation.
        ``(h) Rental of Public Quarters.--Notwithstanding any other law
    (including those restricting the occupancy of housing facilities under
    the jurisdiction of a department or agency of the United States by
    members, and their dependents, of the armed forces above specified
    grades, or by members, and their dependents, of the National Oceanic and
    Atmospheric Administration and the Public Health Service), a member of a
    uniformed service, and the dependents of the member, may be accepted as
    tenants in, and may occupy on a rental basis, any of those housing
    facilities, other than public quarters constructed or designated for
    assignment to an occupancy without charge by such a member and the
    dependents of the member, if any. Such a member may not, because of
    occupancy under this subsection, be deprived of any money allowance to
    which the member is otherwise entitled for the rental of quarters.
        ``(i) Temporary Housing Allowance While in Travel or Leave Status.--
    A member of a uniformed service who is in a pay grade E-4 (4 or more
    years of service) or above is entitled to a temporary basic allowance
    for housing (at a rate determined by the Secretary of Defense) while the
    member is in a travel or leave status between permanent duty stations,
    including time granted as delay en route or proceed time, when the
    member is not assigned to quarters of the United States.
        ``(j) Aviation Cadets.--The eligibility of an aviation cadet of the
    Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for
    housing shall be determined as if the aviation cadet were a member of
    the uniformed services in pay grade E-4.
        ``(k) <<NOTE: Regulations.>>  Administration.--(1) The Secretary of
    Defense shall prescribe regulations for the administration of this
    section.

        ``(2) The Secretary concerned may make such determinations as may be
    necessary to administer this section, including determinations of
    dependency and relationship. When warranted by the circumstances, the
    Secretary concerned may reconsider and change or modify any such
    determination. The authority of the Secretary concerned under this
    subsection may be delegated. Any determination made under this section
    with regard to a member of the uniformed services is final and is not
    subject to review by any accounting officer of the United States or a
    court, unless there is fraud or gross negligence.
        ``(3) Parking facilities (including utility connections) provided
    members of the uniformed services for house trailers and mobile homes
    not owned by the Government shall not be considered to be quarters for
    the purposes of this section or any other provision of law. Any fees
    established by the Government for the use of such a facility shall be
    established in an amount sufficient to cover the cost of maintenance,
    services, and utilities and to amortize the cost of construction of the
    facility over the 25-year period beginning with the completion of such
    construction.
        ``(l) Temporary Continuation of Allowance for Dependents of Members
    Dying on Active Duty.--(1) The Secretary of Defense, or the Secretary of
    Transportation in the case of the Coast Guard when not operating as a
    service in the Navy, may

    [[Page 111 STAT. 1780]]

    allow the dependents of a member of the armed forces who dies on active
    duty and whose dependents are occupying family housing provided by the
    Department of Defense, or by the Department of Transportation in the
    case of the Coast Guard, other than on a rental basis on the date of the
    member's death to continue to occupy such housing without charge for a
    period of 180 days.
        ``(2) The Secretary concerned may pay a basic allowance for housing
    (at the rate that is payable for members of the same grade and
    dependency status as the deceased member for the area where the
    dependents are residing) to the dependents of a member of the uniformed
    services who dies while on active duty and whose dependents--
                ``(A) are not occupying a housing facility under the
            jurisdiction of a uniformed service on the date of the member's
            death;
                ``(B) are occupying such housing on a rental basis on such
            date; or
                ``(C) vacate such housing sooner than 180 days after the
            date of the member's death.

        ``(3) <<NOTE: Termination date.>>  The payment of the allowance
    under paragraph (2) shall terminate 180 days after the date of the
    member's death.

        ``(m) Members Paying Child Support.--(1) A member of a uniformed
    service with dependents may not be paid a basic allowance for housing at
    the with dependents rate solely by reason of the payment of child
    support by the member if--
                ``(A) the member is assigned to a housing facility under the
            jurisdiction of a uniformed service; or
                ``(B) the member is assigned to sea duty, and elects not to
            occupy assigned quarters for unaccompanied personnel, unless the
            member is in a pay grade above E-4.

        ``(2) A member of a uniformed service assigned to quarters of the
    United States or a housing facility under the jurisdiction of a
    uniformed service who is not otherwise authorized a basic allowance for
    housing and who pays child support is entitled to the basic allowance
    for housing differential, except for months for which the amount payable
    for the child support is less than the rate of the differential. Payment
    of a basic allowance for housing differential does not affect any
    entitlement of the member to a partial allowance for quarters under
    subsection (n).
        ``(3) The basic allowance for housing differential to which a member
    is entitled under paragraph (2) is the amount equal to the difference
    between--
                ``(A) the rate of the basic allowance for quarters (with
            dependents) for the member's pay grade, as such rate was in
            effect on December 31, 1997, under this section (as in effect on
            that date); and
                ``(B) the rate of the basic allowance for quarters (without
            dependents) for the member's pay grade, as such rate was in
            effect on December 31, 1997, under this section (as in effect on
            that date).

        ``(4) Whenever the rates of basic pay for members of the uniformed
    services are increased, the monthly amount of the basic allowance for
    housing differential computed under paragraph (3) shall be increased by
    the average percentage increase in the rates of basic pay. The effective
    date of the increase shall be the same date as the effective date of the
    increase in the rates of basic pay.

    [[Page 111 STAT. 1781]]

        ``(5) In the case of two members, who have one or more common
    dependents (and no others), who are not married to each other, and one
    of whom pays child support to the other, the amount of the basic
    allowance for housing paid to each member under this section shall be
    reduced in accordance with regulations prescribed by the Secretary of
    Defense. The total amount of the basic allowances for housing paid to
    the two members may not exceed the sum of the amounts of the allowance
    to which each member would be otherwise entitled under this section.
        ``(n) Partial Allowance for Members Without Dependents.--(1) A
    member of a uniformed service without dependents who is not entitled to
    receive a basic allowance for housing under subsection (b), (c), or (d)
    is entitled to a partial basic allowance for housing at a rate
    determined by the Secretary of Defense under paragraph (2).
        ``(2) The rate of the partial basic allowance for housing is the
    partial rate of the basic allowance for quarters for the member's pay
    grade as such partial rate was in effect on December 31, 1997, under
    section 1009(c)(2) of this title (as such section was in effect on such
    date).''.
        (b) <<NOTE: 37 USC 403 note.>> Transition to Basic Allowance for
    Housing.--The Secretary of Defense shall develop and implement a plan to
    incrementally manage the rate of growth of the various components of the
    basic allowance for housing authorized by section 403 of title 37,
    United States Code (as amended by subsection (a)), during a transition
    period of not more than six years. During the transition period, the
    Secretary may continue to use the authorities provided under sections
    403, 403a, 405(b), and 427(a) of title 37, United States Code (as in
    effect on the day before the date of the enactment of this Act), but
    subject to such modifications as the Secretary considers necessary, to
    provide allowances for members of the uniformed services.

        (c) Repeal of Superseded Authorities.--(1) Section 403a of title 37,
    United States Code, is repealed.
        (2) Section 405 of such title is amended--
                (A) by striking out subsection (b); and
                (B) by redesignating subsections (c) and (d) as subsections
            (b) and (c), respectively.

        (3) Section 427 of such title is amended--
                (A) by striking out subsection (a); and
                (B) in subsection (b)--
                        (i) by striking out ``(b) Additional Separation
                    Allowance.--'' and inserting in lieu thereof ``(a)
                    Entitlement to Allowance.--'';
                        (ii) in paragraph (1)--
                              (I) by striking out ``, including subsection
                          (a),'' in the matter preceding the subparagraphs;
                              (II) by inserting ``or'' at the end of
                          subparagraph (B);
                              (III) by striking out ``; or'' at the end of
                          subparagraph (C) and inserting in lieu thereof a
                          period; and
                              (IV) by striking out subparagraph (D);
                        (iii) in paragraph (3)--
                              (I) by striking out ``(3) An allowance'' and
                          inserting in lieu thereof ``(b) Entitlement When
                          No Residence or Household Maintained for
                          Dependents.--An allowance''; and

    [[Page 111 STAT. 1782]]

                              (II) by striking out ``this subsection'' and
                          inserting in lieu thereof ``subsection (a)'';
                        (iv) in paragraph (4)--
                              (I) by striking out ``(4) A member'' and
                          inserting in lieu thereof ``(c) Effect of Election
                          to Serve Unaccompanied Tour of Duty.--A member'';
                          and
                              (II) by striking out ``paragraph (1)(A) of
                          this subsection'' and inserting in lieu thereof
                          ``subsection (a)(1)(A)''; and
                        (v) by striking out paragraph (5) and inserting in
                    lieu thereof the following new subsection:

        ``(d) Entitlement While Spouse Entitled to Basic Pay.--A member
    married to another member of the uniformed services becomes entitled,
    regardless of any other dependency status, to an allowance under
    subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or
    (C) of paragraph (1) of such subsection if the members were residing
    together immediately before being separated by reasons of execution of
    military orders. Section 421 of this title does not apply to bar the
    entitlement to an allowance under this section. However, not more than
    one monthly allowance may be paid with respect to a married couple under
    this section.''.
        (4) The table of sections at the beginning of chapter 7 of title 37,
    United States Code, is amended by striking out the items relating to
    sections 403 and 403a and inserting in lieu thereof the following new
    item:

    ``403. Basic allowance for housing.''.

        (d) Conforming Amendments.--(1) Title 37, United States Code, is
    amended--
                (A) in section 101(25), by striking out ``basic allowance
            for quarters (including any variable housing allowance or
            station housing allowance)'' and inserting in lieu thereof
            ``basic allowance for housing'';
                (B) in section 406(c), by striking out ``sections 404 and
            405'' and inserting in lieu thereof ``sections 403(c), 404, and
            405'';
                (C) in section 420(c), by striking out ``quarters'' and
            inserting in lieu thereof ``housing'';
                (D) in section 551(3)(D), by striking out ``basic allowance
            for quarters'' and inserting in lieu thereof ``basic allowance
            for housing''; and
                (E) in section 1014(a), by striking out ``basic allowance
            for quarters'' and inserting in lieu thereof ``basic allowance
            for housing''.

        (2) Title 10, United States Code, is amended--
                (A) in section 708(c)(1), by striking out ``basic allowance
            for quarters or basic allowance for subsistence'' and inserting
            in lieu thereof ``basic allowance for housing under section 403
            of title 37, basic allowance for subsistence under section 402
            of such title,'';
                (B) in section 2830(a)--
                        (i) in paragraph (1), by striking out ``basic
                    allowance for quarters'' and inserting in lieu thereof
                    ``basic allowance for housing under section 403 of title
                    37''; and
                        (ii) in paragraph (2), by striking out ``basic
                    allowance for quarters'' and inserting in lieu thereof
                    ``basic allowance for housing'';

    [[Page 111 STAT. 1783]]

                (C) in section 2882(b)--
                        (i) in paragraph (1), by striking out ``section
                    403(b)'' and inserting in lieu thereof ``section 403'';
                    and
                        (ii) in paragraph (2), by striking out ``basic
                    allowance for quarters'' and all that follows through
                    the end of the paragraph and inserting in lieu thereof
                    ``basic allowance for housing under section 403 of title
                    37.'';
                (D) in section 7572(b)--
                        (i) in paragraph (1), by striking out ``the total
                    of--'' and all that follows through the end of the
                    paragraph and inserting in lieu thereof ``the basic
                    allowance for housing payable under section 403 of title
                    37 to a member of the same pay grade without dependents
                    for the period during which the member is deprived of
                    quarters on board ship.''; and
                        (ii) in paragraph (2), by striking out ``basic
                    allowance for quarters'' and inserting in lieu thereof
                    ``basic allowance for housing''; and
                (E) in section 7573, by striking out ``basic allowance for
            quarters'' and inserting in lieu thereof ``basic allowance for
            housing under section 403 of title 37''.

        (3) Section 5561(6)(D) of title 5, United States Code, is amended by
    striking out ``basic allowance for quarters'' and inserting in lieu
    thereof ``basic allowance for housing''.
        (4) Section 107(b) of title 32, United States Code, is amended by
    striking out ``and quarters'' and inserting in lieu thereof ``and
    housing''.
        (5) Section 4(k)(10) of the Military Selective Service Act (50
    U.S.C. App. 454(k)(10)) is amended by striking out ``as such terms'' and
    all that follows through ``extended or amended'' and inserting in lieu
    thereof ``shall be entitled to receive a dependency allowance equal to
    the basic allowance for housing provided for persons in pay grade E-1
    under section 403 of title 37, United States Code,''.
        (e) <<NOTE: 5 USC 5561 note.>>  Effective Date.--This section and
    the amendments made by this section shall take effect on January 1,
    1998.

    SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY
                REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

        (a) Removal of References to BAS and BAQ.--(1) Section 1009 of title
    37, United States Code, is amended to read as follows:

    ``Sec. 1009. Adjustments of monthly basic pay <<NOTE: President.>>

        ``(a) Adjustment Required.--Whenever the General Schedule of
    compensation for Federal classified employees, as contained in section
    5332 of title 5, is adjusted upward as provided in section 5303 of such
    title, the President shall immediately make an upward adjustment in the
    monthly basic pay authorized members of the uniformed services by
    section 203(a) of this title.
        ``(b) Effectiveness of Adjustment.--An adjustment under this section
    shall--
                ``(1) have the force and effect of law; and
                ``(2) carry the same effective date as that applying to the
            compensation adjustments provided General Schedule employees.

        ``(c) Equal Percentage Increase for All Members.--Subject to
    subsection (d), an adjustment under this section shall provide

    [[Page 111 STAT. 1784]]

    all eligible members with an increase in the monthly basic pay which is
    of the same percentage as the overall average percentage increase in the
    General Schedule rates of both basic pay and locality pay for civilian
    employees.
        ``(d) Allocation of Increase Among Pay Grades and Years-of-
    Service.--(1) Subject to paragraph (2), whenever the President
    determines such action to be in the best interest of the Government, he
    may allocate the overall percentage increase in the monthly basic pay
    under subsection (a) among such pay grade and years-of-service
    categories as he considers appropriate.
        ``(2) In making any allocation of an overall percentage increase in
    basic pay under paragraph (1)--
                ``(A) the amount of the increase in basic pay for any given
            pay grade and years-of-service category after any allocation
            made under this subsection may not be less than 75 percent of
            the amount of the increase in the monthly basic pay that would
            otherwise have been effective with respect to such pay grade and
            years-of-service category under subsection (c); and
                ``(B) the percentage increase in the monthly basic pay in
            the case of any member of the uniformed services with four years
            or less service may not exceed the overall percentage increase
            in the General Schedule rates of basic pay for civilian
            employees.

        ``(e) Notice of Allocations.--Whenever the President plans to
    exercise the authority of the President under subsection (d) with
    respect to any anticipated increase in the monthly basic pay of members
    of the uniformed services, the President shall advise Congress, at the
    earliest practicable time prior to the effective date of such increase,
    regarding the proposed allocation of such increase.
        ``(f) Quadrennial Assessment of Allocations.--The allocations of
    increases made under this section shall be assessed in conjunction with
    the quadrennial review of military compensation required by section
    1008(b) of this title.''.
        (2) The item relating to such section in the table of sections at
    the beginning of chapter 19 of such title is amended to read as follows:

    ``1009. Adjustments of monthly basic pay.''.

        (b) <<NOTE: 37 USC 109 note.>>  Effective Date.--The amendments made
    by subsection (a) shall take effect on January 1, 1998.

    SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING
                CERTAIN DUTY.

        Section 1009 of title 37, United States Code, as amended by section
    604, is further amended--
                (1) by redesignating subsection (f) as subsection (g); and
                (2) by inserting after subsection (e) the following new
            subsection:

        ``(f) Protection of Member's Total Compensation While Performing
    Certain Duty.--(1) The total daily equivalent amount of the elements of
    compensation described in paragraph (3), together with other pay and
    allowances under this title, to be paid to a member of the uniformed
    services who is temporarily assigned to duty away from the member's
    permanent duty station or to duty under field conditions at the member's
    permanent duty station shall not be less, for any day during the
    assignment period, than the total amount, for the day immediately
    preceding the date of

    [[Page 111 STAT. 1785]]

    the assignment, of the elements of compensation and other pay and
    allowances of the member.
        ``(2) Paragraph (1) shall not apply with respect to an element of
    compensation or other pay or allowance of a member during an assignment
    described in such paragraph to the extent that the element of
    compensation or other pay or allowance is reduced or terminated due to
    circumstances unrelated to the assignment.
        ``(3) The elements of compensation referred to in this subsection
    mean--
                ``(A) the monthly basic pay authorized members of the
            uniformed services by section 203(a) of this title;
                ``(B) the basic allowance for subsistence authorized members
            of the uniformed services by section 402 of this title; and
                ``(C) the basic allowance for housing authorized members of
            the uniformed services by section 403 of this title.''.

               Subtitle B--Bonuses and Special and Incentive Pays

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

        (a) Special Pay for Health Professionals in Critically Short Wartime
    Specialties.--Section 302g(f) of title 37, United States Code, is
    amended by striking out ``September 30, 1998'' and inserting in lieu
    thereof ``September 30, 1999''.
        (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title
    37, United States Code, is amended by striking out ``September 30,
    1998'' and inserting in lieu thereof ``September 30, 1999''.
        (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37,
    United States Code, is amended by striking out ``September 30, 1998''
    and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu
    thereof ``September 30, 1999''.
        (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title
    37, United States Code, is amended by striking out ``September 30,
    1998'' and inserting in lieu thereof ``September 30, 1999''.
        (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section
    308h(g) of title 37, United States Code, is amended by striking out
    ``September 30, 1998'' and inserting in lieu thereof ``September 30,
    1999''.
        (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37,
    United States Code, as redesignated by section 622, is amended by
    striking out ``September 30, 1998'' and inserting in lieu thereof
    ``September 30, 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, 1998'' and
    inserting in lieu thereof ``October 1, 1999''.

    [[Page 111 STAT. 1786]]

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

        (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
    of title 10, United States Code, is amended by striking out ``September
    30, 1998'' and inserting in lieu thereof ``September 30, 1999''.
        (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking out ``September 30,
    1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu thereof ``September 30,
    1999''.

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

        (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
    United States Code, is amended by striking out ``September 30, 1998,''
    and inserting in lieu thereof ``September 30, 1999,''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of title
    37, United States Code, is amended by striking out ``September 30,
    1998'' and inserting in lieu thereof ``September 30, 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, 1998'' and inserting in lieu thereof
    ``September 30, 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, 1998'' and inserting in lieu
    thereof ``September 30, 1999''.
        (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,
    United States Code, is amended by striking out ``September 30, 1998''
    and inserting in lieu thereof ``September 30, 1999''.
        (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title
    37, United States Code, is amended by striking out ``October 1, 1998''
    and inserting in lieu thereof ``October 1, 1999''.

    SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE
                PAY FOR CERTAIN MEMBERS.

        (a) Aerial Flight Crewmembers.--The table in subsection (b) of
    section 301 of title 37, United States Code, is amended--
                (1) by striking out ``110'' each place it appears and
            inserting in lieu thereof ``150''; and
                (2) by striking out ``125'' each place it appears and
            inserting in lieu thereof ``150''.

        (b) Air Weapons Controller Aircrew.--The table in subsection
    (c)(2)(A) of such section is amended--
                (1) by striking out ``100'' in the first column of amounts
            and inserting in lieu thereof ``150'';
                (2) by striking out ``110'' in the last column of amounts
            and inserting in lieu thereof ``150''; and
                (3) by striking out ``125'' each place it appears and
            inserting in lieu thereof ``150''.

    [[Page 111 STAT. 1787]]

        (c) Other Members.--Subsection (c)(1) of such section is amended--
                (1) by striking out ``$110'' and inserting in lieu thereof
            ``$150''; and
                (2) by striking out ``$165'' and inserting in lieu thereof
            ``$225''.

    SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

        (a) Amounts.--The table in subsection (b)(1) of section 301a of
    title 37, United States Code, is amended--
                (1) by inserting at the end of phase I of the table the
            following:

            ``Over 14.................................................840'';

            and
                (2) by striking out phase II of the table and inserting in
            lieu thereof the following:

                                   ``Phase II

                                  ``Monthly.................................
    ``Years of service as an officrate......................................

            ``Over 22................................................. $585
            ``Over 23.................................................  495
            ``Over 24.................................................  385
            ``Over 25.................................................250''.

        (b) Conforming Amendments.--Such subsection is further amended in
    the matter after the table by striking out ``18 years'' both places it
    appears and inserting in lieu thereof ``22 years''.
        (c) <<NOTE: 37 USC 301a note.>>  Effective Date and Applicability.--
    The amendments made by subsection (a) shall take effect on January 1,
    1999, and shall apply with respect to months beginning on or after that
    date.

    SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

        (a) Increase in Bonus Amounts.--Subsection (c) of section 301b of
    title 37, United States Code, is amended--
                (1) in paragraph (1), by striking out ``$12,000'' and
            inserting in lieu thereof ``$25,000''; and
                (2) in paragraph (2), by striking out ``$6,000'' and
            inserting in lieu thereof ``$12,000''.

        (b) Duration of Agreement.--Paragraph (2) of such subsection is
    further amended by striking out ``one or two years'' and inserting in
    lieu thereof ``one, two, or three years''.
        (c) Content of Annual Report.--Subsection (i)(1) of such section is
    amended--
                (1) by inserting ``and'' at the end of subparagraph (A);
                (2) by striking out ``; and'' at the end of subparagraph (B)
            and inserting in lieu thereof a period; and
                (3) by striking out subparagraph (C).

        (d) Definition of Aviation Specialty.--Subsection (j)(2) of such
    section is amended by inserting ``specific'' before ``community'' both
    places it appears.
        (e) <<NOTE: 37 USC 301b note.>> Effective Dates and Applicability.--
    The amendments made by this section shall take effect as of October 1,
    1996, and shall apply with respect to agreements accepted under section
    301b of title 37, United States Code, on or after that date.

    [[Page 111 STAT. 1788]]

    SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL OFFICERS.

        (a) Availability of Retention Bonus.--Chapter 5 of title 37, United
    States Code, is amended by inserting after section 301d the following
    new section:

    ``Sec. 301e. Multiyear retention bonus: dental officers of the armed
                            forces

        ``(a) Bonus Authorized.--(1) A dental officer described in
    subsection (b) who executes a written agreement to remain on active duty
    for two, three, or four years after completion of any other active-duty
    service commitment may, upon acceptance of the written agreement by the
    Secretary of the military department concerned, be paid a retention
    bonus as provided in this section.
        ``(2) The amount of a retention bonus under paragraph (1) may not
    exceed $14,000 for each year covered by a four-year agreement. The
    maximum yearly retention bonus for two-year and three-year agreements
    shall be reduced to reflect the shorter service commitment.
        ``(b) <<NOTE: Applicability.>>  Officers Automatically Eligible.--
    Subsection (a) applies to an officer of the armed forces who--
                ``(1) is an officer of the Dental Corps of the Army or the
            Navy or an officer of the Air Force designated as a dental
            officer;
                ``(2) has a dental specialty in oral and maxillofacial
            surgery;
                ``(3) is in a pay grade below pay grade O-7;
                ``(4) has at least eight years of creditable service
            (computed as described in section 302b(g) of this title) or has
            completed any active-duty service commitment incurred for dental
            education and training; and
                ``(5) has completed initial residency training (or will
            complete such training before September 30 of the fiscal year in
            which the officer enters into an agreement under subsection
            (a)).

        ``(c) Extension of Bonus to Other Dental Officers.--At the
    discretion of the Secretary of the military department concerned, the
    Secretary may enter into a written agreement described in subsection
    (a)(1) with a dental officer who does not have the dental specialty
    specified in subsection (b)(2), and pay a retention bonus to such an
    officer as provided in this section, if the officer otherwise satisfies
    the eligibility requirements specified in subsection (b). The
    Secretaries shall exercise the authority provided in this section in a
    manner consistent with regulations prescribed by the Secretary of
    Defense.
        ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis,
    of sums paid under this section if the officer who has received the
    payment fails to complete the total period of active duty specified in
    the agreement, as conditions and circumstances warrant.
        ``(2) An obligation to reimburse the United States imposed under
    paragraph (1) is for all purposes a debt owed to the United States.
        ``(3) A discharge in bankruptcy under title 11, United States Code,
    that is entered less than five years after the termination of an
    agreement under this section does not discharge the member signing such
    agreement from a debt arising under such agreement

    [[Page 111 STAT. 1789]]

    or under paragraph (1). <<NOTE: Applicability.>> This paragraph applies
    to any case commenced under title 11 after the date of the enactment of
    the National Defense Authorization Act for Fiscal Year 1998.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    301d the following new item:

    ``301e. Multiyear retention bonus: dental officers of the armed
               forces.''.

    SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN
                DENTAL OFFICERS.

        (a) Variable Special Pay for Junior Officers.--Paragraph (2) of
    section 302b(a) of title 37, United States Code, is amended by striking
    out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof
    the following new subparagraphs:
                ``(C) $7,000 per year, if the officer has at least six but
            less than eight years of creditable service.
                ``(D) $12,000 per year, if the officer has at least eight
            but less than 12 years of creditable service.
                ``(E) $10,000 per year, if the officer has at least 12 but
            less than 14 years of creditable service.
                ``(F) $9,000 per year, if the officer has at least 14 but
            less than 18 years of creditable service.
                ``(G) $8,000 per year, if the officer has 18 or more years
            of creditable service.''.

        (b) Variable Special Pay for Senior Officers.--Paragraph (3) of such
    section is amended by striking out ``$1,000'' and inserting in lieu
    thereof ``$7,000''.
        (c) Additional Special Pay.--Paragraph (4) of such section is
    amended by striking out subparagraphs (B), (C), and (D) and inserting in
    lieu thereof the following new subparagraphs:
                ``(B) $6,000 per year, if the officer has at least three but
            less than 10 years of creditable service.
                ``(C) $15,000 per year, if the officer has 10 or more years
            of creditable service.''.

    SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP
                DUTY LOCATIONS.

        (a) Special Pay Authorized.--Subsection (a) of section 305 of title
    37, United States Code, is amended to read as follows:
        ``(a) Special Pay Authorized.--A member of a uniformed service who
    is entitled to basic pay may be paid special pay under this section at a
    monthly rate not to exceed $300 while the member is on duty at a
    location in the United States or outside the United States designated by
    the Secretary of Defense as a hardship duty location.''.
        (b) Cross References and Regulations.--Such section is further
    amended--
                (1) in subsection (b)--
                        (A) by inserting ``Exception for Certain Members
                    Serving in Certain Locations.--'' after ``(b)''; and
                        (B) by striking out ``as foreign duty pay'' and
                    inserting in lieu thereof ``as hardship duty location
                    pay'';
                (2) in subsection (c)--
                        (A) by inserting ``Exception for Members Receiving
                    Career Sea Pay.--'' after ``(c)''; and

    [[Page 111 STAT. 1790]]

                        (B) by striking out ``special pay under this
                    section'' and inserting in lieu thereof ``hardship duty
                    location pay under subsection (a)''; and
                (3) by adding at the end the following new subsection:

        ``(d) Regulations.--The Secretary of Defense shall prescribe
    regulations for the provision of hardship duty location pay under
    subsection (a), including the specific monthly rates at which the
    special pay will be available.''.
        (c) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

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

        (2) The table of sections at the beginning of chapter 5 of title 37,
    United States Code, is amended by striking out the item relating to
    section 305 and inserting in lieu thereof the following new item:

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

        (d) Conforming Amendment.--Section 907(d) of title 37, United States
    Code, is amended by striking out ``duty at certain places'' and
    inserting in lieu thereof ``duty at a hardship duty location''.
        (e) <<NOTE: 37 USC 305 note.>> Transition.--Until such time as the
    Secretary of Defense prescribes regulations regarding the provision of
    hardship duty location pay under section 305 of title 37, United States
    Code, as amended by this section, the Secretary may continue to use the
    authority provided by such section 305, as in effect on the day before
    the date of the enactment of this Act, to provide special pay to
    enlisted members of the uniformed services on duty at certain places.

    SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

        Section 305a(d) of title 37, United States Code, is amended--
                (1) in paragraph (1)(A), by striking out ``, ship-based
            staff, or ship-based aviation unit'';
                (2) in paragraph (1)(B), by striking out ``or ship-based
            staff'';
                (3) by redesignating paragraphs (2) and (3) as paragraphs
            (3) and (4), respectively; and
                (4) by inserting after paragraph (1) the following new
            paragraph:

        ``(2) The Secretary concerned may designate duty performed by a
    member while serving on a ship the primary mission of which is
    accomplished either while under way or in port as `sea duty' for
    purposes of this section, even though the duty is performed while the
    member is permanently or temporarily assigned to a ship-based staff or
    other unit not covered by paragraph (1).''.

    SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.

        (a) Eligible Members.--Subsection (a)(1) of section 308b of title
    37, United States Code, is amended by striking out ``ten years'' and
    inserting in lieu thereof ``14 years''.
        (b) Bonus Amounts; Payment.--Subsection (b) of such section is
    amended to read as follows:
        ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this
    section may not exceed--

    [[Page 111 STAT. 1791]]

                ``(A) $5,000, in the case of a member who reenlists or
            extends an enlistment for a period of six years;
                ``(B) $2,500, in the case of a member who, having never
            received a bonus under this section, reenlists or extends an
            enlistment for a period of three years; and
                ``(C) $2,000, in the case of a member who, having received a
            bonus under this section for a previous three-year reenlistment
            or extension of an enlistment, reenlists or extends the
            enlistment for an additional period of three years.

        ``(2) Any bonus payable under this section shall be disbursed in one
    initial payment of an amount not to exceed one-half of the total amount
    of the bonus and subsequent periodic partial payments of the balance of
    the bonus. The Secretary concerned shall prescribe the amount of each
    partial payment and the schedule for making the partial payments.''.
        (c) Special Eligibility Requirements; Number of Individual
    Bonuses.--Subsection (c) of such section is amended to read as follows:
        ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
    (1) To be eligible for a second bonus under this section in the amount
    specified in subsection (b)(1)(C), a member must--
                ``(A) enter into the subsequent reenlistment or extension of
            an enlistment for a period of three years not later than the
            date on which the enlistment or extension for which the first
            bonus was paid would expire; and
                ``(B) still satisfy the designated skill or unit
            requirements required under subsection (a)(2).

        ``(2) A member may not be paid more than one six-year bonus or two
    three-year bonuses under this section.''.
        (d) Effect of Failure To Serve Satisfactorily.--Subsection (d) of
    such section is amended to read as follows:
        ``(d) Repayment of Bonus.--A member who receives a bonus under this
    section and who fails, during the period for which the bonus was paid,
    to serve satisfactorily in the element of the Selected Reserve of the
    Ready Reserve with respect to which the bonus was paid shall refund to
    the United States an amount that bears the same ratio to the amount of
    the bonus paid to the member as the period that the member failed to
    serve satisfactorily bears to the total period for which the bonus was
    paid.''.
        (e) Clerical Amendments.--Such section is further amended--
                (1) in subsection (a), by inserting ``Authority and
            Eligibility Requirements.--'' after ``(a)'';
                (2) in subsection (e), by inserting ``Regulations.--'' after
            ``(e)''; and
                (3) in subsection (f), by inserting ``Termination of
            Authority.--'' after ``(f)''.

    SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER
                ENLISTED MEMBERS.

        (a) Eligible Persons.--Subsection (a)(2) of section 308i of title
    37, United States Code, is amended--
                (1) in subparagraph (A), by striking out ``10 years'' and
            inserting in lieu thereof ``14 years'';
                (2) in subparagraph (C), by striking out ``and'';
                (3) by redesignating subparagraph (D) as subparagraph (E);

    [[Page 111 STAT. 1792]]

                (4) in subparagraph (E) (as so redesignated), by inserting
            ``(except under this section)'' after ``bonus''; and
                (5) by inserting after subparagraph (C) the following new
            subparagraph:
                ``(D) is projected to occupy a position as a member of the
            Selected Reserve in a specialty in which--
                        ``(i) the person successfully served while a member
                    on active duty; and
                        ``(ii) the person attained a level of qualification
                    while a member on active duty commensurate with the
                    grade and years of service of the member; and''.

        (b) Bonus Amounts; Payment.--Subsection (b) of such section is
    amended to read as follows:
        ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this
    section may not exceed--
                ``(A) $5,000, in the case of a person who enlists for a
            period of six years;
                ``(B) $2,500, in the case of a person who, having never
            received a bonus under this section, enlists for a period of
            three years; and
                ``(C) $2,000, in the case of a person who, having received a
            bonus under this section for a previous three-year enlistment,
            reenlists or extends the enlistment for an additional period of
            three years.

        ``(2) Any bonus payable under this section shall be disbursed in one
    initial payment of an amount not to exceed one-half of the total amount
    of the bonus and subsequent periodic partial payments of the balance of
    the bonus. The Secretary concerned shall prescribe the amount of each
    partial payment and the schedule for making the partial payments.''.
        (c) Special Eligibility Requirements; Number of Individual
    Bonuses.--Subsection (c) of such section is amended to read as follows:
        ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--
    (1) To be eligible for a second bonus under this section in the amount
    specified in subsection (b)(1)(C), a person must--
                ``(A) enter into a reenlistment or extension of an
            enlistment for a period of three years not later than the date
            on which the enlistment for which the first bonus was paid would
            expire; and
                ``(B) still satisfy the eligibility requirements under
            subsection (a).

        ``(2) A person may not be paid more than one six-year bonus or two
    three-year bonuses under this section.''.
        (d) Reorganization of Section.--Such section is further amended--
                (1) by redesignating subsections (e), (f), and (g) as
            paragraphs (2), (3), and (4), respectively, of subsection (d);
            and
                (2) by redesignating subsections (h) and (i) as subsections
            (e) and (f), respectively.

        (e) Conforming and Clerical Amendments.--Such section is further
    amended--
                (1) in subsection (a), by inserting ``Authority and
            Eligibility Requirements.--'' after ``(a)'';
                (2) in subsection (d)--
                        (A) by inserting ``Repayment of Bonus.--(1)'' after
                    ``(d)'';

    [[Page 111 STAT. 1793]]

                        (B) in paragraphs (2) and (4), as redesignated by
                    subsection (d)(1), by striking out ``subsection (d)''
                    and inserting in lieu thereof ``paragraph (1)''; and
                        (C) in paragraph (3), as redesignated by subsection
                    (d)(1)--
                              (i) by striking out ``subsection (h)'' and
                          inserting in lieu thereof ``subsection (e)''; and
                              (ii) by striking out ``subsection (d)'' and
                          inserting in lieu thereof ``paragraph (1)'';
                (3) in subsection (e), as redesignated by subsection (d)(2),
            by inserting ``Regulations.--'' after ``(e)''; and
                (4) in subsection (f), as redesignated by subsection (d)(2),
            by inserting ``Termination of Authority.--'' after ``(f)''.

    SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD
                RESERVE.

        Section 308e of title 37, United States Code, is amended--
                (1) in subsection (a), by striking out ``Under regulations
            prescribed by the Secretary of Defense, the Secretary of a
            military department'' and inserting in lieu thereof ``The
            Secretary concerned'';
                (2) in subsection (b)(3), by striking out ``designated by
            the Secretary of Defense for the purposes of this section'' and
            inserting in lieu thereof ``designated for purposes of this
            section in the regulations prescribed under subsection (f)'';
                (3) in subsection (c)(3), by striking out ``regulations
            prescribed by the Secretary of Defense'' and inserting in lieu
            thereof ``the regulations prescribed under subsection (f)''; and
                (4) by adding at the end the following new subsections:

        ``(f) <<NOTE: Regulations.>>  This section shall be administered
    under regulations prescribed by the Secretary of Defense for the armed
    forces under the jurisdiction of the Secretary of Defense and by the
    Secretary of Transportation for the Coast Guard when the Coast Guard is
    not operating as a service in the Navy.

        ``(g) The authority in subsection (a) does not apply to the
    Secretary of Commerce and the Secretary of Health and Human Services.''.

    SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED
                OFFICERS.

        (a) Special Pay for Officers Extending Period of Active Service.--
    Section 312(a) of title 37, United States Code, is amended by striking
    out ``$12,000'' and inserting in lieu thereof ``$15,000''.
        (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 37,
    United States Code, is amended by striking out ``$8,000'' and inserting
    in lieu thereof ``$10,000''.
        (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title
    37, United States Code, is amended--
                (1) in subsection (a)(1), by striking out ``$10,000'' and
            inserting in lieu thereof ``$12,000''; and
                (2) in subsection (b)(1), by striking out ``$4,500'' and
            inserting in lieu thereof ``$5,500''.

        (d) <<NOTE: 37 USC 312 note.>>  Effective Date.--(1) The amendments
    made by this section shall take effect as of October 1, 1997.

        (2) <<NOTE: Applicability.>>  The amendments made by subsections (a)
    and (b) shall apply with respect to agreements accepted under sections
    312(a) and 312b(a), respectively, of title 37, United States Code, on or
    after October 1, 1997.

    [[Page 111 STAT. 1794]]

    SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED
                MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS
                OVERSEAS.

        (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37,
    United States Code, is amended to read as follows:

    ``Sec. 314. Special pay or bonus: qualified enlisted members extending
                            duty at designated locations overseas

        ``(a) <<NOTE: Applicability.>>  Covered Members.--This section
    applies with respect to an enlisted member of an armed force who--
                ``(1) is entitled to basic pay;
                ``(2) has a specialty that is designated by the Secretary
            concerned for the purposes of this section;
                ``(3) has completed a tour of duty (as defined in accordance
            with regulations prescribed by the Secretary concerned) at a
            location outside the 48 contiguous States and the District of
            Columbia that is designated by the Secretary concerned for the
            purposes of this section; and
                ``(4) at the end of that tour of duty executes an agreement
            to extend that tour for a period of not less than one year.

        ``(b) Special Pay or Bonus Authorized.--Upon the acceptance by the
    Secretary concerned of the agreement providing for an extension of the
    tour of duty of an enlisted member described in subsection (a), the
    member is entitled, at the election of the Secretary concerned, to
    either--
                ``(1) special pay in monthly installments in an amount
            prescribed by the Secretary, but not to exceed $80 per month; or
                ``(2) an annual bonus in an amount prescribed by the
            Secretary, but not to exceed $2,000 per year.

        ``(c) <<NOTE: Notification.>>  Selection and Payment of Special Pay
    or Bonus.--Not later than the date on which the Secretary concerned
    accepts an agreement described in subsection (a)(4) providing for the
    extension of a member's tour of duty, the Secretary concerned shall
    notify the member regarding whether the member will receive special pay
    or a bonus under this section. The payment rate for the special pay or
    bonus shall be fixed at the time of the agreement and may not be changed
    during the period of the extended tour of duty. The Secretary concerned
    may pay a bonus under this section either in a lump sum or installments.

        ``(d) Repayment of Bonus.--(1) A member who, having entered into a
    written agreement to extend a tour of duty for a period under subsection
    (a), receives a bonus payment under subsection (b)(2) for a 12-month
    period covered by the agreement and ceases during that 12-month period
    to perform the agreed tour of duty shall refund to the United States the
    unearned portion of the bonus. The unearned portion of the bonus is the
    amount by which the amount of the bonus paid to the member exceeds the
    amount determined by multiplying the amount of the bonus paid by the
    percent determined by dividing 12 into the number of full months during
    which the member performed the duty in the 12-month period.
        ``(2) The Secretary concerned may waive the obligation of a member
    to reimburse the United States under paragraph (1) if the Secretary
    determines that conditions and circumstances warrant the waiver.

    [[Page 111 STAT. 1795]]

        ``(3) An obligation to repay the United States imposed under
    paragraph (1) is for all purposes a debt owed to the United States.
        ``(4) A discharge in bankruptcy under title 11 that is entered less
    than five years after the termination of the agreement does not
    discharge the member signing the agreement from a debt arising under the
    agreement or under paragraph (1). <<NOTE: Applicability.>> This
    paragraph applies to any case commenced under title 11 on or after the
    date of the enactment of the National Defense Authorization Act for
    Fiscal Year 1998.

        ``(e) Effect of Rest and Recuperative Absence.--A member who elects
    to receive one of the benefits specified in section 705(b) of title 10
    as part of the extension of a tour of duty is not entitled to the
    special pay authorized by subsection (b)(1) for the period of the
    extension of duty for which the benefit under such section is
    provided.''.
        (2) The item relating to section 314 in the table of sections at the
    beginning of chapter 5 of such title is amended to read as follows:

    ``314. Special pay or bonus: qualified enlisted members extending duty
               at designated locations overseas.''.

        (b) <<NOTE: 37 USC 314 note.>>  Application of Amendment.--Section
    314 of title 37, United States Code, as amended by subsection (a), shall
    apply with respect to an agreement to extend a tour of duty as provided
    in such section executed on or after October 1, 1997.

    SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

        Section 427 of title 37, United States Code (as amended by section
    603), is further amended in subsection (a)(1) by striking out ``$75''
    and inserting in lieu thereof ``$100''.

    SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

        Section 433(c) of title 37, United States Code, is amended--
                (1) in the first sentence, by striking out ``and shall be''
            and all that follows through ``is performed''; and
                (2) by inserting after the first sentence the following new
            sentence: ``The allowance may be paid to the member before, on,
            or after the date on which the muster duty is performed, but not
            later than 30 days after that date.''.

                Subtitle C--Travel and Transportation Allowances

    SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE
                APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.

        Section 406(h)(2)(C) of title 37, United States Code, is amended by
    striking out the comma at the end of clause (iii) and all that follows
    through ``title 10.'' and inserting in lieu thereof a period.

    SEC. 632. DISLOCATION ALLOWANCE.

        (a) In General.--Section 407 of title 37, United States Code, is
    amended to read as follows:

    [[Page 111 STAT. 1796]]

    ``Sec. 407. Travel and transportation allowances: dislocation allowance

        ``(a) <<NOTE: Regulations.>>  Eligibility for Primary Dislocation
    Allowance.--(1) Under regulations prescribed by the Secretary concerned,
    a member of a uniformed service described in paragraph (2) is entitled
    to a primary dislocation allowance at the rate determined under
    subsection (c) for the member's pay grade and dependency status.

        ``(2) A member of the uniformed services referred to in paragraph
    (1) is any of the following:
                ``(A) A member who makes a change of permanent station and
            the member's dependents actually make an authorized move in
            connection with the change, including a move by the dependents--
                        ``(i) to join the member at the member's duty
                    station after an unaccompanied tour of duty when the
                    member's next tour of duty is an accompanied tour at the
                    same station; and
                        ``(ii) to a location designated by the member after
                    an accompanied tour of duty when the member's next tour
                    of duty is an unaccompanied tour at the same duty
                    station.
                ``(B) A member whose dependents actually move pursuant to
            section 405a(a), 406(e), 406(h), or 554 of this title.
                ``(C) A member whose dependents actually move from their
            place of residence under circumstances described in section 406a
            of this title.
                ``(D) A member who is without dependents and--
                        ``(i) actually moves to a new permanent station
                    where the member is not assigned to quarters of the
                    United States; or
                        ``(ii) actually moves from a place of residence
                    under circumstances described in section 406a of this
                    title.
                ``(E) A member who is ordered to move in connection with the
            closure or realignment of a military installation and, as a
            result, the member's dependents actually move or, in the case of
            a member without dependents, the member actually moves.

        ``(3) If a primary dislocation allowance is paid under this
    subsection to a member described in subparagraph (C) or (D)(ii) of
    paragraph (2), the member is not entitled to another dislocation
    allowance as a member described in subparagraph (A) or (E) of such
    paragraph in connection with the same move.
        ``(b) Secondary Allowance Authorized Under Certain Circumstances.--
    (1) Under <<NOTE: Regulations.>>  regulations prescribed by the
    Secretary concerned, whenever a member is entitled to a primary
    dislocation allowance under subsection (a) as a member described in
    paragraph (2)(C) or (2)(D)(ii) of such subsection, the member is also
    entitled to a secondary dislocation allowance at the rate determined
    under subsection (c) for the member's pay grade and dependency status
    if, subsequent to the member or the member's dependents actually moving
    from their place of residence under circumstances described in section
    406a of this title, the member or member's dependents complete that move
    to a new location and then actually move from that new location to
    another location also under circumstances described in section 406a of
    this title.

        ``(2) If a secondary dislocation allowance is paid under this
    subsection, the member is not entitled to a dislocation allowance

    [[Page 111 STAT. 1797]]

    as a member described in paragraph (2)(A) or (2)(E) of subsection (a) in
    connection with those moves.
        ``(c) Dislocation Allowance Rates.--(1) The amount of the
    dislocation allowance to be paid under this section to a member shall be
    based on the member's pay grade and dependency status at the time the
    member becomes entitled to the allowance.
        ``(2) The initial rate for the dislocation allowance, for each pay
    grade and dependency status, shall be equal to the rate in effect for
    that pay grade and dependency status on December 31, 1997, as adjusted
    by the average percentage increase in the rates of basic pay for
    calendar year 1998. Effective on the same date that the monthly rates of
    basic pay for members are increased for a subsequent calendar year, the
    Secretary of Defense shall adjust the rates for the dislocation
    allowance for that calendar year by the percentage equal to the average
    percentage increase in the rates of basic pay for that calendar year.
        ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not
    entitled to more than one dislocation allowance under this section
    during a fiscal year unless--
                ``(A) the Secretary concerned finds that the exigencies of
            the service require the member to make more than one change of
            permanent station during the fiscal year;
                ``(B) the member is ordered to a service school as a change
            of permanent station;
                ``(C) the member's dependents are covered by section
            405a(a), 406(e), 406(h), or 554 of this title; or
                ``(D) <<NOTE: Applicability.>>  subparagraph (C) or (D)(ii)
            of subsection (a)(2) or subsection (b) apply with respect to the
            member or the member's dependents.

        ``(2) This subsection does not apply in time of national emergency
    or in time of war.
        ``(e) First or Last Duty.--A member is not entitled to payment of a
    dislocation allowance under this section when the member is ordered from
    the member's home to the member's first duty station or from the
    member's last duty station to the member's home.
        ``(f) Rule of Construction.--For purposes of this section, a member
    whose dependents may not make an authorized move in connection with a
    change of permanent station is considered a member without dependents.
        ``(g) Advance Payment.--A dislocation allowance payable under this
    section may be paid in advance.''.
        (b) <<NOTE: 37 USC 407 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on January 1, 1998.

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

    SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR
                BENEFIT PLAN.

        (a) Election To Discontinue Within One Year After Second Anniversary
    of Commencement of Payment of Retired Pay.--(1) Subchapter II of chapter
    73 of title 10, United States Code, is amended by inserting after
    section 1448 the following new section:

    [[Page 111 STAT. 1798]]

    ``Sec. 1448a. Election to discontinue participation: one-year
                            opportunity after second anniversary of
                            commencement of payment of retired pay

        ``(a) Authority.--A participant in the Plan may, subject to the
    provisions of this section, elect to discontinue participation in the
    Plan at any time during the one-year period beginning on the second
    anniversary of the date on which payment of retired pay to the
    participant commences.
        ``(b) Concurrence of Spouse.--
                ``(1) Concurrence required.--A married participant may not
            (except as provided in paragraph (2)) make an election under
            subsection (a) without the concurrence of the participant's
            spouse.
                ``(2) Exceptions.--A participant may make such an election
            without the concurrence of the participant's spouse by
            establishing to the satisfaction of the Secretary concerned that
            one of the conditions specified in section 1448(a)(3)(C) of this
            title exists.
                ``(3) Form of concurrence.--The concurrence of a spouse
            under paragraph (1) shall be made in such written form and shall
            contain such information as may be required under regulations
            prescribed by the Secretary of Defense.

        ``(c) Limitation on Election When Former Spouse Coverage in
    Effect.--The limitation set forth in section 1450(f)(2) of this title
    applies to an election to discontinue participation in the Plan under
    subsection (a).
        ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D)
    of this title applies to an election under subsection (a).
        ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of
    this title applies to an election under subsection (a).
        ``(f) Notice to Affected Beneficiaries.--The Secretary concerned
    shall notify any former spouse or other natural person previously
    designated under section 1448(b) of this title of an election to
    discontinue participation under subsection (a).
        ``(g) Effective Date of Election.--An election under subsection (a)
    is effective as of the first day of the first calendar month following
    the month in which the election is received by the Secretary concerned.
        ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs
    (4)(B) and (5)(C) of section 1448(a) of this title do not apply to
    prevent an election under subsection (a).''.
        (2) The table of sections at the beginning of such subchapter is
    amended by inserting after the item relating to section 1448 the
    following new item:

    ``1448a. Election to discontinue participation: one-year opportunity
               after second
               anniversary of commencement of payment of retired pay.''.

        (b) <<NOTE: 10 USC 1448a note.>>  Transition Provision for Current
    Participants.--Notwithstanding the limitation on the time for making an
    election under section 1448a of title 10, United States Code (as added
    by subsection (a)), that is specified in subsection (a) of such section,
    a participant in the Survivor Benefit Plan under subchapter II of
    chapter 73 of such title may make an election in accordance with that
    section within one year after the effective date of that section under
    subsection (c) if the second anniversary of the

    [[Page 111 STAT. 1799]]

    commencement of payment of retired pay to the participant precedes that
    effective date.

        (c) <<NOTE: 10 USC 1448a note.>>  Effective Date.--Section 1448a 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. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER
                SPOUSE TO SPOUSE MAY BE MADE.

        (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title
    10, United States Code, is amended by adding at the end the following
    new sentence: ``Notwithstanding the preceding sentence, a change of
    election under this subsection to provide an annuity to a spouse instead
    of a former spouse may (subject to paragraph (2)) be made at any time
    after the person providing the annuity remarries without regard to the
    time limitation in section 1448(a)(5)(B) of this title.''.
        (b) <<NOTE: 10 USC 1450 note.>>  Applicability.--The amendment made
    by subsection (a) shall apply with respect to marriages occurring
    before, on, or after the date of the enactment of this Act.

    SEC. 643. <<NOTE: 10 USC 1408 note.>>  REVIEW OF FEDERAL FORMER SPOUSE
                PROTECTION LAWS.

        (a) Review Required.--The Secretary of Defense shall carry out a
    comprehensive review (including a comparison) of--
                (1) the protections, benefits, and treatment afforded under
            Federal law to members and former members of the uniformed
            services and former spouses of such persons; and
                (2) the protections, benefits, and treatment afforded under
            Federal law to employees and former employees of the Government
            and former spouses of such persons.

        (b) Military Personnel Matters To Be Reviewed.--In the case of
    members and former members of the uniformed services and former spouses
    of such persons, the review under subsection (a) shall include the
    following:
                (1) All provisions of law (principally those originally
            enacted in the Uniformed Services Former Spouses' Protection Act
            (title X of Public Law 97-252)) that--
                        (A) establish, provide for the enforcement of, or
                    otherwise protect interests of members and former
                    members of the uniformed services and former spouses of
                    such persons in retired or retainer pay of members and
                    former members; or
                        (B) provide other benefits for members and former
                    members of the uniformed services and former spouses of
                    such persons.
                (2) The experience of the uniformed services in
            administering those provisions of law, including the adequacy
            and effectiveness of the legal assistance provided by the
            Department of Defense in matters related to the Uniformed
            Services Former Spouses' Protection Act.
                (3) The experience of members and former members of the
            uniformed services and former spouses of such persons in the
            administration of those provisions of law.
                (4) The experience of members and former members of the
            uniformed services and former spouses of such persons in the
            application of those provisions of law by State courts.
                (5) The history of State statutes and State court
            interpretations of the Uniformed Services Former Spouses'
            Protection Act and other provisions of Federal law described in
            paragraph

    [[Page 111 STAT. 1800]]

            (1)(A) and the extent to which those interpretations follow
            those laws.

        (c) Civilian Personnel Matters To Be Reviewed.--In the case of
    former spouses of employees and former employees of the Government, the
    review under subsection (a) shall include the following:
                (1) All provisions of law that--
                        (A) establish, provide for the enforcement of, or
                    otherwise protect interests of employees and former
                    employees of the Government and former spouses of such
                    persons in annuities of employees and former employees
                    under Federal employees' retirement systems; or
                        (B) provide other benefits for employees and former
                    employees of the Government and former spouses of such
                    persons.
                (2) The experience of the Office of Personnel Management and
            other agencies of the Government in administering those
            provisions of law.
                (3) The experience of employees and former employees of the
            Government and former spouses of such persons in the
            administration of those provisions of law.
                (4) The experience of employees and former employees of the
            Government and former spouses of such persons in the application
            of those provisions of law by State courts.

        (d) Sampling Authorized.--The Secretary may use sampling in carrying
    out the review under this section.
        (e) Report.--Not later than September 30, 1999, the Secretary shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the results of the review under subsection (a). The report shall
    include any recommendations for legislation that the Secretary considers
    appropriate.

    SEC. 644. <<NOTE: 10 USC 1448 note.>>  ANNUITIES FOR CERTAIN MILITARY
                SURVIVING SPOUSES.

        (a) Survivor Annuity.--(1) The Secretary concerned shall pay an
    annuity to the qualified surviving spouse of each member of the
    uniformed services who--
                (A) died before March 21, 1974, and was entitled to retired
            or retainer pay on the date of death; or
                (B) was a member of a reserve component of the Armed Forces
            during the period beginning on September 21, 1972, and ending on
            October 1, 1978, and at the time of his death would have been
            entitled to retired pay under chapter 67 of title 10, United
            States Code (as in effect before December 1, 1994), but for the
            fact that he was under 60 years of age.

        (2) A qualified surviving spouse for purposes of this section is a
    surviving spouse who has not remarried and who is not eligible for an
    annuity under section 4 of Public Law 92-425 (10 U.S.C. 1448 note).
        (b) Amount of Annuity.--(1) An annuity under this section shall be
    paid at the rate of $165 per month, as adjusted from time to time under
    paragraph (3).
        (2) An annuity paid to a surviving spouse under this section shall
    be reduced by the amount of any dependency and indemnity compensation
    (DIC) to which the surviving spouse is entitled under section 1311(a) of
    title 38, United States Code.

    [[Page 111 STAT. 1801]]

        (3) Whenever after the date of the enactment of this Act retired or
    retainer pay is increased under section 1401a(b)(2) of title 10, United
    States Code, each annuity that is payable under this section shall be
    increased at the same time and by the same total percent. The amount of
    the increase shall be based on the amount of the monthly annuity payable
    before any reduction under this section.
        (c) Application Required.--No benefit shall be paid to any person
    under this section unless an application for such benefit is filed with
    the Secretary concerned by or on behalf of such person.
        (d) Definitions.--For purposes of this section:
                (1) The terms ``uniformed services'' and ``Secretary
            concerned'' have the meanings given such terms in section 101 of
            title 37, United States Code.
                (2) The term ``surviving spouse'' has the meaning given the
            terms ``widow'' and ``widower'' in paragraphs (3) and (4) of
            section 1447 of title 10, United States Code.

        (e) Prospective Applicability.--(1) Annuities under this section
    shall be paid for months beginning after the month in which this Act is
    enacted.
        (2) No benefit shall accrue to any person by reason of the enactment
    of this section for any period before the first month that begins after
    the month in which this Act is enacted.
        (f) Expiration of Authority.--The authority to pay annuities under
    this section shall expire on September 30, 2001.

    SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME
                WIDOWS.

        (a) Payments To Be Made by Secretary of Veterans Affairs.--Section
    653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10
    U.S.C. 1448 note) is amended--
                (1) by inserting ``(1)'' before ``An annuity'' the first
            place it appears; and
                (2) by adding at the end the following new paragraph:

        ``(2) Payment of annuities under this section shall be made by the
    Secretary of Veterans Affairs. In making such payments, the Secretary
    shall combine the payment under this section with the payment of any
    amount due the same person under section 4 of Public Law 92-425 (10
    U.S.C. 1448 note), as provided in subsection (e)(1) of that section. The
    Secretary concerned shall transfer amounts for payments under this
    section to the Secretary of Veterans Affairs in the same manner as is
    provided under subsection (e)(2) of section 4 of Public Law 92-425 for
    payments under that section.''.
        (b) Combination With Other Benefits.--Section 4(e)(1) of Public Law
    92-425 (10 U.S.C. 1448 note) is amended--
                (1) by inserting after the first sentence the following new
            sentence: ``In making such payments, the Secretary shall combine
            with the payment under this section payment of any amount due
            the same person under section 653(d) of the National Defense
            Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448 note).'';
            and
                (2) by inserting ``(and, if applicable, under section 653(d)
            of the National Defense Authorization Act, Fiscal Year 1989)''
            after ``under this section''.

        (c) <<NOTE: Applicability. 10 USC 1448 note.>>  Effective Date.--The
    amendments made by this section take effect on the first day of the
    first month beginning after the date of the enactment of this Act and
    shall apply with respect

    [[Page 111 STAT. 1802]]

    to payments of benefits for months beginning on or after that date,
    except that the Secretary of Veterans Affairs may provide, if necessary
    for administrative implementation, that such amendments shall apply
    beginning with a later month, not later than the first month beginning
    more than 180 days after the date of the enactment of this Act.

                            Subtitle E--Other Matters

    SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN
                HEALTH PROFESSIONS.

        (a) In General.--Chapter 109 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 2173. Education loan repayment program: commissioned officers in
                            specified health professions

        ``(a) Authority To Repay Education Loans.--For the purpose of
    maintaining adequate numbers of commissioned officers of the armed
    forces on active duty who are qualified in the various health
    professions, the Secretary of a military department may repay, in the
    case of a person described in subsection (b), a loan that--
                ``(1) was used by the person to finance education regarding
            a health profession; and
                ``(2) was obtained from a governmental entity, private
            financial institution, school, or other authorized entity.

        ``(b) Eligible Persons.--To be eligible to obtain a loan repayment
    under this section, a person must--
                ``(1) satisfy one of the requirements specified in
            subsection (c);
                ``(2) be fully qualified for, or hold, an appointment as a
            commissioned officer in one of the health professions; and
                ``(3) sign a written agreement to serve on active duty, or,
            if on active duty, to remain on active duty for a period in
            addition to any other incurred active duty obligation.

        ``(c) Academic and Professional Requirements.--One of the following
    academic requirements must be satisfied for purposes of determining the
    eligibility of a person for a loan repayment under this section:
                ``(1) The person is fully qualified in a health care
            profession that the Secretary of the military department
            concerned has determined to be necessary to meet identified
            skill shortages.
                ``(2) The person is enrolled as a full-time student in the
            final year of a course of study at an accredited educational
            institution leading to a degree in a health profession other
            than medicine or osteopathic medicine.
                ``(3) The person is enrolled in the final year of an
            approved graduate program leading to specialty qualification in
            medicine, dentistry, osteopathic medicine, or other health
            profession.

        ``(d) Certain Persons Ineligible.--Participants of the Armed Forces
    Health Professions Scholarship and Financial Assistance program under
    subchapter I of chapter 105 of this title and students of the Uniformed
    Services University of the Health Sciences established under section
    2112 of this title are not eligible for the repayment of an education
    loan under this section.
        ``(e) Loan Repayments.--(1) Subject to the limits established by
    paragraph (2), a loan repayment under this section may consist

    [[Page 111 STAT. 1803]]

    of payment of the principal, interest, and related expenses of a loan
    obtained by a person described in subsection (b) for--
                ``(A) all educational expenses, comparable to all
            educational expenses recognized under section 2127(a) of this
            title for participants in the Armed Forces Health Professions
            Scholarship and Financial Assistance program; and
                ``(B) reasonable living expenses, not to exceed expenses
            comparable to the stipend paid under section 2121(d) of this
            title for participants in the Armed Forces Health Professions
            Scholarship and Financial Assistance program.

        ``(2) For each year of obligated service that a person agrees to
    serve in an agreement described in subsection (b)(3), the Secretary of
    the military department concerned may pay not more than $22,000 on
    behalf of the person. <<NOTE: Effective date.>>  This maximum amount
    shall be increased annually by the Secretary of Defense effective
    October 1 of each year by the percentage equal to the percent increase
    in the average annual cost of educational expenses and stipend costs of
    a single scholarship under the Armed Forces Health Professions
    Scholarship and Financial Assistance program. The total amount that may
    be repaid on behalf of any person may not exceed an amount determined on
    the basis of a four-year active duty service obligation.

        ``(f)Active Duty Service Obligation.--(1) A person entering into an
    agreement described in subsection (b)(3) incurs an active duty service
    obligation. <<NOTE: Regulations.>> The length of this obligation shall
    be determined under regulations prescribed by the Secretary of Defense,
    but those regulations may not provide for a period of obligation of less
    than one year for each maximum annual amount, or portion thereof, paid
    on behalf of the person for qualified loans.

        ``(2) For persons on active duty before entering into the agreement,
    the active duty service obligation shall be served consecutively to any
    other obligation incurred under the agreement.
        ``(g) Effect of Failure To Complete Obligation.--A commissioned
    officer who is relieved of the officer's active duty obligation under
    this section before the completion of that obligation may be given, with
    or without the consent of the officer, any alternative obligation
    comparable to any of the alternative obligations authorized by section
    2123(e) of this title for participants in the Armed Forces Health
    Professions Scholarship and Financial Assistance program.
        ``(h) Regulations.--The Secretary of Defense shall prescribe
    regulations to carry out this section, including standards for qualified
    loans and authorized payees and other terms and conditions for the
    making of loan repayments.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2173. Education loan repayment program: commissioned officers in
               specified health professions.''.

    SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO
                SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.

        (a) Elimination of Limitations on Amount of Separation Pay.--Section
    9 of the Coast and Geodetic Survey Commissioned Officers' Act of 1948
    (33 U.S.C. 853h) is amended--

    [[Page 111 STAT. 1804]]

                (1) in subsection (b)(1), by striking out ``, or $30,000,
            whichever is less'';
                (2) in subsection (b)(2), by striking out ``, but in no
            event more than $15,000''; and
                (3) in subsection (d), by striking out ``(1)'', and by
            striking out paragraph (2).

        (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From
    Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic
    Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h(e)(2)) is
    amended in the first sentence by inserting before the period at the end
    the following: ``, less the amount of Federal income tax withheld from
    such pay (such withholding being at the flat withholding rate for
    Federal income tax withholding, as in effect pursuant to regulations
    prescribed under chapter 24 of the Internal Revenue Code of 1986)''.
        (c) <<NOTE: 33 USC 853h note.>> Effective Date and Application.--The
    amendments made by this section shall take effect as of October 1, 1997,
    and shall apply to payments of separation pay that are made after
    September 30, 1997.

    SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA
                COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION
                EXPENSES.

        (a) Public Health Service.--Section 221(a) of the Public Health
    Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the
    following new paragraph:
                ``(16) Section 1052, Reimbursement for adoption expenses.''.

        (b) National Oceanic and Atmospheric Administration.--Section 3(a)
    of the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding
    at the end the following new paragraph:
                ``(16) Section 1052, Reimbursement for adoption expenses.''.

        (c) <<NOTE: 33 USC 857a note.>>  Prospective Applicability.--The
    amendments made by this section shall apply only to adoptions that are
    completed on or after the date of the enactment of this Act.

    SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD
                WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE
                PHILIPPINES.

        (a) In General.--The Secretary of the military department concerned
    shall pay, upon request, to an individual described in subsection (b)
    the amount determined with respect to that individual under subsection
    (c).
        (b) Covered Individuals.--A payment under subsection (a) shall be
    made to any individual who as a member of the Armed Forces during World
    War II--
                (1) was captured within the territory of the Philippines by
            Japanese forces;
                (2) escaped from captivity; and
                (3) served as a guerrilla fighter in the Philippines during
            the period from January 1942 through February 1945.

        (c) Amount To Be Paid.--The amount of a payment under subsection (a)
    shall be the amount of quarters and subsistence allowance which accrued
    to an individual described in subsection (b) during the period specified
    in paragraph (3) of subsection (b) and which was not paid to that
    individual. For the purposes of this subsection, the Secretary of War
    shall be deemed to have determined that conditions in the Philippines
    during the specified period justified payment under applicable
    regulations of quarters

    [[Page 111 STAT. 1805]]

    and subsistence allowances at the maximum special rate for duty where
    emergency conditions existed. The Secretary shall apply interest
    compounded at the three-month Treasury bill rate.
        (d) Payment to Survivors.--In the case of any individual described
    in subsection (b) who is deceased, payment under this section with
    respect to that individual shall be made to that individual's nearest
    surviving relative, as determined by the Secretary concerned.

    SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY
                LEVEL.

        (a) Study and Report.--(1) The Secretary of Defense shall conduct a
    study of members of the Armed Forces and their families who subsist at,
    near, or below the poverty level. The study shall include the following:
                (A) An analysis of potential solutions for ensuring that
            members of the Armed Forces and their families do not have to
            subsist at, near, or below the poverty level, including
            potential solutions involving changes in the system of
            allowances for members.
                (B) Identification of the military populations most likely
            to need income support under Federal Government programs,
            including--
                        (i) the populations living in areas of the United
                    States where housing costs are notably high;
                        (ii) the populations living outside the United
                    States; and
                        (iii) the number of persons in each identified
                    population.
                (C) The desirability of increasing rates of basic pay and
            allowances for members over a defined period of years by a range
            of percentages that provides for higher percentage increases for
            lower ranking members than for higher ranking members.

        (2) Not later than 180 days after the date of the enactment of this
    Act, the Secretary of Defense shall submit to Congress a report
    containing the results of the study and such recommendations as the
    Secretary considers to be appropriate.
        (b) Implementation of Department of Defense Special Supplemental
    Food Program for Personnel Outside the United States.--(1) Subsection
    (b) of section 1060a of title 10, United States Code, is amended to read
    as follows:
        ``(b) Federal Payments and Commodities.--For the purpose of
    obtaining Federal payments and commodities in order to carry out the
    program referred to in subsection (a), the Secretary of Agriculture
    shall make available to the Secretary of Defense the same payments and
    commodities as are made for the special supplemental food program in the
    United States under section 17 of the Child Nutrition Act of 1966 (42
    U.S.C. 1786). The Secretary of Defense may use funds available for the
    Department of Defense to carry out the program under subsection (a).''.
        (2) <<NOTE: 10 USC 1060a note.>>  Not later than 90 days after the
    date of the enactment of this Act, the Secretary of Defense shall submit
    to Congress a report regarding the intentions of the Secretary regarding
    implementation of the program authorized under section 1060a of title
    10, United States Code, including any plans to implement the program.

    [[Page 111 STAT. 1806]]

                        TITLE VII--HEALTH CARE PROVISIONS

                        Subtitle A--Health Care Services

    Sec. 701. Expansion of retiree dental insurance plan to include
               surviving spouse and child dependents of certain deceased
               members.
    Sec. 702. Provision of prosthetic devices to covered beneficiaries.
    Sec. 703. <<NOTE: 10 USC 1073 note.>>  Study concerning the provision of
               comparative information.

                           Subtitle B--TRICARE Program

    Sec. 711. Addition of definition of TRICARE program to title 10.
    Sec. 712. Plan for expansion of managed care option of TRICARE program.

               Subtitle C--Uniformed Services Treatment Facilities

    Sec. 721. Implementation of designated provider agreements for Uniformed

               Services Treatment Facilities.
    Sec. 722. Continued acquisition of reduced-cost drugs.
    Sec. 723. Limitation on total payments.

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

    Sec. 731. Improvements in health care coverage and access for members
               assigned to certain duty locations far from sources of care.
    Sec. 732. Waiver or reduction of copayments under overseas dental
               program.
    Sec. 733. Premium collection requirements for medical and dental
               insurance
               programs; extension of deadline for implementation of dental
               insurance program for military retirees.
    Sec. 734. Dental insurance plan coverage for retirees of the Public
               Health Service and NOAA.
    Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for
               services.
    Sec. 736. Use of personal services contracts for provision of health
               care services and legal protection for providers.
    Sec. 737. Portability of State licenses for Department of Defense health
               care
               professionals.
    Sec. 738. Standard form and requirements regarding claims for payment
               for
               services.
    Sec. 739. Chiropractic health care demonstration program.

                            Subtitle E--Other Matters

    Sec. 741. Continued admission of civilians as students in physician
               assistant training program of Army Medical Department.
    Sec. 742. Payment for emergency health care overseas for military and
               civilian
               personnel of the On-Site Inspection Agency.
    Sec. 743. Authority for agreement for use of medical resource facility,
               Alamogordo, New Mexico.
    Sec. 744. Disclosures of cautionary information on prescription
               medications.
    Sec. 745. Competitive procurement of certain ophthalmic services.
    Sec. 746. Comptroller General study of adequacy and effect of maximum
               allowable charges for physicians under CHAMPUS.
    Sec. 747. Comptroller General study of Department of Defense pharmacy
               programs.
    Sec. 748. Comptroller General study of Navy graduate medical education
               program.
    Sec. 749. Study of expansion of pharmaceuticals by mail program to
               include
               additional Medicare-eligible covered beneficiaries.
    Sec. 750. Comptroller General study of requirement for military medical
               facilities in National Capital Region.
    Sec. 751. Report on policies and programs to promote healthy lifestyles
               for
               members of the Armed Forces and their dependents.
    Sec. 752. Sense of Congress regarding quality health care for retirees.

                        Subtitle F--Persian Gulf Illness

    Sec. 761. Definitions.
    Sec. 762. Plan for health care services for Persian Gulf veterans.
    Sec. 763. Comptroller General study of revised disability criteria for
               physical
               evaluation boards.
    Sec. 764. Medical care for certain reserves who served in Southwest Asia
               during the Persian Gulf War.
    Sec. 765. Improved medical tracking system for members deployed overseas
               in
               contingency or combat operations.

    [[Page 111 STAT. 1807]]

    Sec. 766. Notice of use of investigational new drugs or drugs unapproved
               for their applied use.
    Sec. 767. Report on plans to track location of members in a theater of
               operations.
    Sec. 768. Sense of Congress regarding the deployment of specialized
               units for
               detecting and monitoring chemical, biological, and similar
               hazards in a theater of operations.
    Sec. 769. Report on effectiveness of research efforts regarding Gulf War
               illnesses.
    Sec. 770. Persian Gulf illness clinical trials program.
    Sec. 771. Sense of Congress concerning Gulf War illness.

                        Subtitle A--Health Care Services

    SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE
                SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED
                MEMBERS.

        Section 1076c(b)(4) of title 10, United States Code, is amended--
                (1) in subparagraph (A)--
                        (A) by striking out ``dies'' and inserting in lieu
                    thereof ``died''; and
                        (B) by striking out ``or'' at the end of the
                    subparagraph;
                (2) by striking out the period at the end of subparagraph
            (B) and inserting in lieu thereof ``; or''; and
                (3) by adding at the end the following new subparagraph:
                        ``(C) who died while on active duty for a period of
                    more than 30 days and whose eligible dependents are not
                    eligible, or no longer eligible, for dental benefits
                    under section 1076a of this title pursuant to subsection
                    (i)(2) of such section.''.

    SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

        (a) Inclusion Among Authorized Care.--Subsection (a) of section 1077
    of title 10, United States Code, is amended by adding at the end the
    following new paragraph:
                ``(15) Prosthetic devices, as determined by the Secretary of
            Defense to be necessary because of significant conditions
            resulting from trauma, congenital anomalies, or disease.''.

        (b) Conforming Amendment.--Subsection (b) of such section is amended
    by striking out paragraph (2) and inserting in lieu thereof the
    following new paragraph:
                ``(2) Hearing aids, orthopedic footwear, and spectacles,
            except that, outside of the United States and at stations inside
            the United States where adequate civilian facilities are
            unavailable, such items may be sold to dependents at cost to the
            United States.''.

    <<NOTE: 10 USC 1073 note.>> SEC. 703. STUDY CONCERNING THE PROVISION OF
                COMPARATIVE INFORMATION.

        (a) Study.--The Secretary of Defense shall conduct a study
    concerning the provision of the information described in subsection (b)
    to beneficiaries under the TRICARE program established under the
    authority of chapter 55 of title 10, United States Code, and prepare and
    submit to Congress a report concerning such study.
        (b) Provision of Comparative Information.--Information described in
    this subsection, with respect to a managed care entity that contracts
    with the Secretary of Defense to provide medical assistance under the
    program described in subsection (a), shall include the following:
                (1) The benefits covered by the entity involved, including--

    [[Page 111 STAT. 1808]]

                        (A) covered items and services beyond those provided
                    under a traditional fee-for-service program;
                        (B) any beneficiary cost sharing; and
                        (C) any maximum limitations on out-of-pocket
                    expenses.
                (2) The net monthly premium, if any, under the entity.
                (3) The service area of the entity.
                (4) To the extent available, quality and performance
            indicators for the benefits under the entity (and how they
            compare to such indicators under the traditional fee-for-service
            programs in the area involved), including--
                        (A) disenrollment rates for enrollees electing to
                    receive benefits through the entity for the previous two
                    years (excluding disenrollment due to death or moving
                    outside the service area of the entity);
                        (B) information on enrollee satisfaction;
                        (C) information on health process and outcomes;
                        (D) grievance procedures;
                        (E) the extent to which an enrollee may select the
                    health care provider of their choice, including health
                    care providers within the network of the entity and out-
                    of-network health care providers (if the entity covers
                    out-of-network items and services); and
                        (F) an indication of enrollee exposure to balance
                    billing and the restrictions on coverage of items and
                    services provided to such enrollee by an out-of-network
                    health care provider.
                (5) Whether the entity offers optional supplemental benefits
            and the terms and conditions (including premiums) for such
            coverage.
                (6) An overall summary description as to the method of
            compensation of participating physicians.

                           Subtitle B--TRICARE Program

    SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO
                TITLE 10.

        Section 1072 of title 10, United States Code, is amended by adding
    at the end the following new paragraph:
                ``(7) The term `TRICARE program' means the managed health
            care program that is established by the Department of Defense
            under the authority of this chapter, principally section 1097 of
            this title, and includes the competitive selection of
            contractors to financially underwrite the delivery of health
            care services under the Civilian Health and Medical Program of
            the Uniformed Services.''.

    SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

        (a) Plan For Expansion of TRICARE Prime.--The Secretary of Defense
    shall prepare a plan for the expansion of the managed care option of the
    TRICARE Program, known as TRICARE Prime, into areas of the United States
    located outside of the catchment areas of medical treatment facilities
    of the uniformed services, but in which the managed care option is a
    cost-effective alternative because of--

    [[Page 111 STAT. 1809]]

                (1) the significant number of members of the uniformed
            services and covered beneficiaries under chapter 55 of title 10,
            United States Code (including retired members of the Armed
            Forces and their dependents), who reside in the areas; and
                (2) the presence in the areas of sufficient nonmilitary
            health care provider networks.

        (b) Alternatives.--As an alternative to expansion of TRICARE Prime
    to areas of the United States in which there are few or no nonmilitary
    health care provider networks, the Secretary shall include in the plan
    required under subsection (a) an evaluation of the feasibility and cost-
    effectiveness of providing a member of the Armed Forces on active duty
    who is stationed in such an area, or whose dependents reside in such an
    area, with one or both of the following:
                (1) A monetary stipend to assist the member in obtaining
            health care services for the member or the member's dependents.
                (2) A reduction in the cost-sharing requirements applicable
            to the TRICARE program options otherwise available to the member
            to match the reduced cost-sharing responsibilities of the
            managed care option of the TRICARE program.

        (c) Submission of Plan.--Not later than March 1, 1998, the Secretary
    shall submit to Congress the plan required under subsection (a).

               Subtitle C--Uniformed Services Treatment Facilities

    SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR UNIFORMED
                SERVICES TREATMENT FACILITIES.

        (a) Commencement of Health Care Services Under Agreement.--
    Subsection (c) of section 722 of the National Defense Authorization Act
    for Fiscal Year 1997 (Public Law 104-201, 10 U.S.C. 1073 note) is
    amended--
                (1) by redesignating paragraphs (1) and (2) as subparagraphs
            (A) and (B);
                (2) by inserting ``(1)'' before ``Unless''; and
                (3) by adding at the end the following new paragraph:

        ``(2) The Secretary may modify the effective date established under
    paragraph (1) for an agreement to permit a transition period of not more
    than six months between the date on which the agreement is executed by
    the parties and the date on which the designated provider commences the
    delivery of health care services under the agreement.''.
        (b) Temporary Continuation of Existing Participation Agreements.--
    Subsection (d) of such section is amended by inserting before the period
    at the end the following: ``, including any transitional period provided
    by the Secretary under paragraph (2) of such subsection''.

    SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

        Section 722 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by adding
    at the end the following new subsection:

    [[Page 111 STAT. 1810]]

        ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated
    provider shall be treated as part of the Department of Defense for
    purposes of section 8126 of title 38, United States Code, in connection
    with the provision by the designated provider of health care services to
    covered beneficiaries pursuant to the participation agreement of the
    designated provider under section 718(c) of the National Defense
    Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C.
    248c note) or pursuant to the agreement entered into under subsection
    (b).''.

    SEC. 723. LIMITATION ON TOTAL PAYMENTS.

        Section 726(b) of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by adding
    at the end the following new sentence: ``In establishing the ceiling
    rate for enrollees with the designated providers who are also eligible
    for the Civilian Health and Medical Program of the Uniformed Services,
    the Secretary of Defense shall take into account the health status of
    the enrollees.''.

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

    SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS
                ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF CARE.

        (a) Supplemental Care Program.--(1) Section 1074(c) of title 10,
    United States Code, is amended--
                (A) by inserting ``(1)'' after ``(c)''; and
                (B) by adding at the end the following new paragraphs:

        ``(2)(A) Subject to such exceptions as the Secretary of Defense
    considers necessary, coverage for medical care for members of the armed
    forces under this subsection, and standards with respect to timely
    access to such care, shall be comparable to coverage for medical care
    and standards for timely access to such care under the managed care
    option of the TRICARE program known as TRICARE Prime.
        `` <<NOTE: Contracts.>> (B) The Secretary of Defense shall enter
    into arrangements with contractors under the TRICARE program or with
    other appropriate contractors for the timely and efficient processing of
    claims under this subsection.

        ``(3)(A) The Secretary of Defense may not require a member of the
    armed forces described in subparagraph (B) to receive routine primary
    medical care at a military medical treatment facility.
        ``(B) A member referred to in subparagraph (A) is a member of the
    armed forces on active duty who is entitled to medical care under this
    subsection and who--
                ``(i) receives a duty assignment described in subparagraph
            (C); and
                ``(ii) pursuant to the assignment of such duty, resides at a
            location that is more than 50 miles, or approximately one hour
            of driving time, from the nearest military medical treatment
            facility adequate to provide the needed care.

        ``(C) A duty assignment referred to in subparagraph (B) means any of
    the following:
                ``(i) Permanent duty as a recruiter.

    [[Page 111 STAT. 1811]]

                ``(ii) Permanent duty at an educational institution to
            instruct, administer a program of instruction, or provide
            administrative services in support of a program of instruction
            for the Reserve Officers' Training Corps.
                ``(iii) Permanent duty as a full-time adviser to a unit of a
            reserve component.
                ``(iv) Any other permanent duty designated by the Secretary
            concerned for purposes of this paragraph.''.

        (2) <<NOTE: Applicability. 10 USC 1074 note.>> The amendments made
    by paragraph (1) shall apply with respect to coverage of medical care
    for, and the provision of such care to, a member of the Armed Forces
    under section 1074(c) of title 10, United States Code, on and after the
    later of the following:
                (A) April 1, 1998.
                (B) The date on which the TRICARE program is in place in the
            service area of the member.

        (b) <<NOTE: 10 USC 1074 note.>>  Temporary Authority for Managed
    Care Expansion to Members on Active Duty at Certain Remote Locations.--
    (1) A member of the Armed Forces described in subsection (c) is entitled
    to receive care under the Civilian Health and Medical Program of the
    Uniformed Services. In connection with such care, the Secretary of
    Defense shall waive the obligation of the member to pay a deductible,
    copayment, or annual fee that would otherwise be applicable under that
    program for care provided to the members under the program.

        (2) A member who is entitled under paragraph (1) to receive health
    care services under CHAMPUS shall receive such care from a network
    provider under the TRICARE program if such a provider is available in
    the service area of the member.
        (3) <<NOTE: Effective date. Expiration date.>> Paragraph (1) shall
    take effect on the date of the enactment of this Act and shall expire
    with respect to a member upon the later of the following:
                (A) The date that is one year after the date of the
            enactment of this Act.
                (B) The date on which the amendments made by subsection (a)
            apply with respect to the coverage of medical care for, and
            provision of such care to, the member.

        (c) <<NOTE: 10 USC 1074 note.>>  Eligible Members.--A member
    referred to in subsection (b) is a member of the Armed Forces on active
    duty who--
                (1) receives a duty assignment described in subsection (d);
            and
                (2) pursuant to the assignment of such duty, resides at a
            location that is more than 50 miles, or approximately one hour
            of driving time, from--
                        (A) the nearest health care facility of the
                    uniformed services adequate to provide the needed care
                    under chapter 55 of title 10, United States Code; and
                        (B) the nearest source of the needed care that is
                    available to the member under the TRICARE Prime plan.

        (d) <<NOTE: 10 USC 1074 note.>>  Duty Assignments Covered.--A duty
    assignment referred to in subsection (c)(1) means any of the following:
                (1) Permanent duty as a recruiter.
                (2) Permanent duty at an educational institution to
            instruct, administer a program of instruction, or provide
            administrative services in support of a program of instruction
            for the Reserve Officers' Training Corps.

    [[Page 111 STAT. 1812]]

                (3) Permanent duty as a full-time adviser to a unit of a
            reserve component of the Armed Forces.
                (4) Any other permanent duty designated by the Secretary
            concerned for purposes of this subsection.

        (e) <<NOTE: 10 USC 1074 note.>>  Payment of Costs.--Deductibles,
    copayments, and annual fees not payable by a member by reason of a
    waiver granted under the regulations prescribed pursuant to subsection
    (b) shall be paid out of funds available to the Department of Defense
    for the Defense Health Program.

        (f) <<NOTE: 10 USC 1074 note.>>  Definitions.--In this section:
                (1) The term ``TRICARE program'' has the meaning given that
            term in section 1072(7) of title 10, United States Code.
                (2) The term ``TRICARE Prime plan'' means a plan under the
            TRICARE program that provides for the voluntary enrollment of
            persons for the receipt of health care services to be furnished
            in a manner similar to the manner in which health care services
            are furnished by health maintenance organizations.

    SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL
                PROGRAM.

        Section 1076a(h) of title 10, United States Code, is amended--
                (1) in the first sentence, by striking out ``Secretary'' and
            inserting in lieu thereof ``Secretary of Defense''; and
                (2) by adding at the end the following new sentence: ``In
            the case of such an overseas dental plan, the Secretary may
            waive or reduce the copayments otherwise required by subsection
            (e) to the extent the Secretary determines appropriate for the
            effective and efficient operation of the plan.''.

    SEC. 733. <<NOTE: Regulations.>>  PREMIUM COLLECTION REQUIREMENTS FOR
                MEDICAL AND DENTAL INSURANCE PROGRAMS; EXTENSION OF DEADLINE
                FOR IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR MILITARY
                RETIREES.

        (a) Premium Collection For Selected Reserve Dental Insurance.--
    Paragraph (3) of section 1076b(b) of title 10, United States Code, is
    amended to read as follows:
        ``(3) The Secretary of Defense shall establish procedures for the
    collection of the member's share of the premium for coverage by the
    dental insurance plan. To the maximum extent practicable, a member's
    share shall be deducted and withheld from the basic pay payable to the
    member for inactive duty training or basic pay payable to the member for
    active duty (if pay is available to the member). Such share shall be
    used to pay the premium for coverage by the dental insurance plan.''.
        (b) Premium Collection For Retiree Dental Insurance Plan.--Paragraph
    (2) of section 1076c(c) of such title is amended to read as follows:
        ``(2) The Secretary of Defense shall establish procedures for the
    collection of the premiums charged for coverage by the dental insurance
    plan. To the maximum extent practicable, the premiums payable by a
    member entitled to retired pay shall be deducted and withheld from the
    retired pay of the member (if pay is available to the member).''.
        (c) <<NOTE: 10 USC 1076b note.>>  Report to Congress.--Not later
    than March 1, 1998, the Secretary of Defense shall submit to Congress a
    report on the premium collection procedures established pursuant to
    paragraph (3) of section 1076b(b) of title 10, United States Code, and
    paragraph

    [[Page 111 STAT. 1813]]

    (2) of section 1076c(c) of such title. The report shall describe the
    extent to which premium collections are made under such paragraphs
    through deductions and withholding from pay.

        (d) <<NOTE: 10 USC 1076b note.>>  Limitation on Implementation of
    Alternative Collection Procedures.--The Secretary of Defense may not
    implement procedures for collecting premiums under section 1076b(b)(3)
    of title 10, United States Code, or section 1076c(c)(2) of such title
    other than by deductions and withholding from pay until 120 days after
    the date that the Secretary submits a report to Congress describing the
    justifications for implementing such alternative procedures.

        (e) Extension of Deadline For Implementation of Dental Insurance
    Plan For Military Retirees.--Section 703(b) of the National Defense
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
    2590) <<NOTE: 10 USC 1076c note.>>  is amended by striking ``October 1,
    1997'' and inserting ``April 1, 1998''.

    SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC
                HEALTH SERVICE AND NOAA.

        (a) Eligibility.--(1) Subsection (a) of section 1076c of title 10,
    United States Code, is amended by striking out ``military retirees'' and
    inserting in lieu thereof ``retirees of the uniformed services''.
        (2) Subsection (b)(1) of such section is amended by striking out
    ``Armed Forces'' and inserting in lieu thereof ``uniformed services''.
        (b) Officials Responsible.--(1) Subsection (a) of such section (as
    amended by subsection (a)) is further amended by inserting ``, in
    consultation with the other administering Secretaries,'' after
    ``Secretary of Defense''.
        (2) Subsection (h) of such section is amended by striking out
    ``Secretary of Transportation'' and inserting in lieu thereof ``other
    administering Secretaries''.

    SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR
                SERVICES.

        (a) Conformity Between Rates.--Section 1079(h) of title 10, United
    States Code, is amended by striking out paragraphs (1), (2), and (3) and
    inserting in lieu thereof the following new paragraph:
        ``(1) Except as provided in paragraphs (2) and (3), payment for a
    charge for services by an individual health care professional (or other
    noninstitutional health care provider) for which a claim is submitted
    under a plan contracted for under subsection (a) shall be equal to an
    amount determined to be appropriate, to the extent practicable, in
    accordance with the same reimbursement rules as apply to payments for
    similar services under title XVIII of the Social Security Act (42 U.S.C.
    1395 et seq.). The Secretary of Defense shall determine the appropriate
    payment amount under this paragraph in consultation with the other
    administering Secretaries.''.
        (b) Reduced Rates Authorized.--Paragraph (5) of such section is
    amended by adding at the end the following new sentence: ``With the
    consent of the health care provider, the Secretary is also authorized to
    reduce the authorized payment for certain health care services below the
    amount otherwise required by the payment limitations under paragraph
    (1).''.

    [[Page 111 STAT. 1814]]

        (c) Conforming Amendments.--Such section is further
    amended--
                (1) in paragraph (5), by striking out ``paragraph (4), the
            Secretary'' and inserting in lieu thereof ``paragraph (2), the
            Secretary of Defense''; and
                (2) by redesignating paragraphs (4), (5), and (6) as
            paragraphs (2), (3), and (4), respectively.

    SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH
                CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

        (a) Use of Contracts Outside Medical Treatment Facilities.--Section
    1091(a) of title 10, United States Code, is amended--
                (1) by inserting ``(1)'' before ``The Secretary of
            Defense''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Secretary of Defense, and the Secretary of Transportation
    with respect to the Coast Guard when it is not operating as a service in
    the Navy, may also enter into personal services contracts to carry out
    other health care responsibilities of the Secretary (such as the
    provision of medical screening examinations at Military Entrance
    Processing Stations) at locations outside medical treatment facilities,
    as determined necessary pursuant to regulations prescribed by the
    Secretary. The Secretary may not enter into a contract under this
    paragraph after the end of the one-year period beginning on the date of
    the enactment of this paragraph.''.
        (b) Defense of Suits.--Section 1089 of such title is amended--
                (1) in subsection (a), by adding at the end the following
            new sentence: <<NOTE: Applicability.>>  ``This subsection shall
            also apply if the physician, dentist, nurse, pharmacist, or
            paramedical or other supporting personnel (or the estate of such
            person) involved is serving under a personal services contract
            entered into under section 1091 of this title.''; and
                (2) in subsection (f)--
                        (A) by inserting ``(1)'' after ``(f)''; and
                        (B) by adding at the end the following new
                    paragraph:

        ``(2) With respect to the Secretary of Defense and the Armed Forces
    Retirement Home Board, the authority provided by paragraph (1) also
    includes the authority to provide for reasonable attorney's fees for
    persons described in subsection (a), as determined necessary pursuant to
    regulations prescribed by the head of the agency concerned.''.
        (c) Report.--Not later than March 31, 1998, the Secretary of Defense
    shall submit to Congress a report on the feasible alternative means for
    performing the medical screening examinations that are routinely
    performed at Military Entrance Processing Stations. The report shall
    contain a discussion of the feasibility and cost of the use of--
                (1) the TRICARE system for the performance of the
            examinations; and
                (2) each other alternative identified in the report.

    SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE HEALTH
                CARE PROFESSIONALS.

        Section 1094 of title 10, United States Code, is amended--
                (1) by redesignating subsection (d) as subsection (e); and

    [[Page 111 STAT. 1815]]

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

        ``(d)(1) Notwithstanding any law regarding the licensure of health
    care providers, a health-care professional described in paragraph (2)
    may practice the health profession or professions of the health-care
    professional in any State, the District of Columbia, or a Commonwealth,
    territory, or possession of the United States, regardless of whether the
    practice occurs in a health care facility of the Department of Defense,
    a civilian facility affiliated with the Department of Defense, or any
    other location authorized by the Secretary of Defense.
        ``(2) A health-care professional referred to in paragraph (1) is a
    member of the armed forces who--
                ``(A) has a current license to practice medicine,
            osteopathic medicine, dentistry, or another health profession;
            and
                ``(B) is performing authorized duties for the Department of
            Defense.''.

    SEC. 738. <<NOTE: Regulations.>>  STANDARD FORM AND REQUIREMENTS
                REGARDING CLAIMS FOR PAYMENT FOR SERVICES.

        (a) Clarification of Existing Requirements.--Section 1106 of title
    10, United States Code, is amended to read as follows:

    ``Sec. 1106. Submittal of claims: standard form; time limits

        ``(a) Standard Form.--The Secretary of Defense, after consultation
    with the other administering Secretaries, shall prescribe by regulation
    a standard form for the submission of claims for the payment of health
    care services provided under this chapter.
        ``(b) Time for Submission.--A claim for payment for services
    provided under this chapter shall be submitted as provided in such
    regulations not later than one year after the services are provided.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 55 of title 10, United States Code, is amended by striking out
    the item relating to section 1106 and inserting in lieu thereof the
    following new item:

    ``1106. Submittal of claims: standard form; time limits.''.

    SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

        (a) Two-Year Extension.--Subsection (b) of section 731 of the
    National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
    337; 10 U.S.C. 1092 note) is amended by striking out ``1997'' and
    inserting in lieu thereof ``1999''.
        (b) Expansion to at Least Three Additional Treatment Facilities.--
    Subsection (a)(2)(A) of such section is amended by striking out ``not
    less than 10'' and inserting in lieu thereof ``the National Naval
    Medical Center, the Walter Reed Army Medical Center, and not less than
    11 other''.
        (c) Reports.--Subsection (c) of such section is amended--
                (1) by striking paragraph (3); and
                (2) by adding at the end the following new paragraphs:

        ``(3) Not later than January 30, 1998, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    that identifies the additional treatment facilities designated to
    furnish chiropractic care under the program that were not so designated
    before the report required by paragraph

    [[Page 111 STAT. 1816]]

    (1) was prepared, together with the plan for the conduct of the program
    at the additional treatment facilities.
        ``(4) Not later than May 1, 1998, the Secretary of Defense shall
    modify the plan for evaluating the program submitted pursuant to
    paragraph (2) in order to provide for the evaluation of the program at
    all of the designated treatment facilities under the program, including
    the treatment facilities referred to in paragraph (3).
        ``(5) Not later than May 1, 2000, the Secretary shall submit to the
    committees referred to in paragraph (3) a final report in accordance
    with the plan submitted pursuant to paragraph (2).''.

                            Subtitle E--Other Matters

    SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN
                ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.

        (a) Civilian Attendance.--(1) Chapter 407 of title 10, United States
    Code, is amended by adding at the end the following new section:

    ``Sec. 4416. Academy of Health Sciences: admission of civilians in
                            physician assistant training program

        ``(a) In General.--The Secretary of the Army may, pursuant to an
    agreement entered into with an accredited institution of higher
    education--
                ``(1) permit students of the institution to attend the
            didactic portion of the physician assistant training program
            conducted by the Army Medical Department at the Academy of
            Health Sciences at Fort Sam Houston, Texas; and
                ``(2) accept from the institution academic services to
            support the physician assistant training program at the Academy.

        ``(b) Agreement for Exchange of Services.--An agreement entered into
    with an institution of higher education under this section shall require
    the institution, in exchange for services provided under paragraph (1)
    of subsection (a), to provide academic services described in paragraph
    (2) of such subsection that the Secretary and authorized representatives
    of the institution consider appropriate.
        ``(c) <<NOTE: Regulations.>>  Selection of Students.--In
    consultation with the authorized representatives of the institution of
    higher education concerned, the Secretary shall prescribe the
    qualifications and methods of selection for students of the institution
    to receive instruction at the Academy under this section. The
    qualifications shall be comparable to those generally required for
    admission to the physician assistant training program at the Academy.

        ``(d) Rules of Attendance.--Except as the Secretary determines
    necessary, a student who receives instruction at the Academy under this
    section shall be subject to the same regulations governing attendance,
    discipline, discharge, and dismissal as apply to other persons attending
    the Academy.
        ``(e) Limitations.--The Secretary shall ensure the following:
                ``(1) That the Army Medical Department, in carrying out an
            agreement under this section, does not incur costs in excess of
            the costs that the department would incur to obtain, by means
            other than the agreement, academic services that are

    [[Page 111 STAT. 1817]]

            comparable to those provided by the institution pursuant to the
            agreement.
                ``(2) That attendance of civilian students at the Academy
            under this section does not cause a decrease in the number of
            members of the armed forces enrolled in the physician assistant
            training program at the Academy.

        ``(f) Annual Report.--(1) Each year, the Secretary shall submit to
    Congress a report on the exchange of services under this section during
    the year. The report shall contain the following:
                ``(A) The number of civilian students who receive
            instruction at the Academy under this section.
                ``(B) An assessment of the benefits derived by the United
            States.

        ``(2) Reports are required under paragraph (1) only for years during
    which an agreement is in effect under this section.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``4416. Academy of Health Sciences: admission of civilians in physician
               assistant training program.''.

        (b) Effect on Existing Demonstration Program.--An agreement entered
    into under the demonstration program for the admission of civilians as
    physician assistant students at the Academy of Health Sciences, Fort Sam
    Houston, Texas, established pursuant to section 732 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 2810) shall be treated as an agreement entered into under section
    4416 of title 10, United States Code (as added by subsection (a)). The
    agreement may be extended in such manner and for such period as the
    parties to the agreement consider appropriate consistent with section
    4416.

    SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND
                CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.

        (a) Payment of Costs.--The Secretary of Defense may pay the costs of
    any emergency health care that--
                (1) is needed by a member of the Armed Forces, civilian
            employee of the Department of Defense, or civilian employee of a
            contractor operating under a contract with the Department of
            Defense while the member or employee is performing temporary or
            permanent duty with the On-Site Inspection Agency outside the
            United States; and
                (2) is furnished to such person during fiscal year 1998 by a
            source outside the United States.

        (b) Funding.--Funds authorized to be appropriated for the expenses
    of the On-Site Inspection Agency for fiscal year 1998 by this Act shall
    be available to cover payments for emergency health care provided under
    subsection (a).

    SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY,
                ALAMOGORDO, NEW MEXICO.

        (a) Authority.--(1) The Secretary of the Air Force may enter into an
    agreement with Gerald Champion Hospital, Alamogordo, New Mexico, under
    which the Secretary may furnish health care services to eligible
    individuals in a medical resource facility in Alamogordo, New Mexico,
    that is constructed and equipped, in part, using funds provided by the
    Secretary under the agreement.
        (2) For purposes of this section:

    [[Page 111 STAT. 1818]]

                (A) The term ``eligible individual'' means any individual
            eligible for medical and dental care under chapter 55 of title
            10, United States Code, including any member of the uniformed
            services entitled to such care under section 1074(a) of that
            title.
                (B) The terms ``medical resource facility'' and ``facility''
            mean the medical resource facility to be constructed and
            equipped pursuant to the agreement authorized by paragraph (1).
                (C) The term ``Hospital'' means Gerald Champion Hospital,
            Alamogordo, New Mexico.

        (b) Content of Agreement.--Any agreement entered into under
    subsection (a) shall specify, at a minimum, the following:
                (1) The relationship between the Hospital and the Secretary
            of the Air Force in the provision of health care services to
            eligible individuals in the medical resource facility,
            including--
                        (A) whether or not the Secretary and the Hospital
                    are to use and administer the facility jointly or
                    independently; and
                        (B) under what circumstances the Hospital is to act
                    as a provider of health care services under the managed
                    care option of the TRICARE program known as TRICARE
                    Prime.
                (2) Matters relating to the administration of the agreement,
            including--
                        (A) the duration of the agreement;
                        (B) the rights and obligations of the Secretary and
                    the Hospital under the agreement, including any
                    contracting or grievance procedures applicable under the
                    agreement;
                        (C) the types of care to be provided to eligible
                    individuals under the agreement, including the cost to
                    the Department of the Air Force of providing the care to
                    eligible individuals during the term of the agreement;
                        (D) the access of Air Force medical personnel to the
                    facility under the agreement;
                        (E) the rights and responsibilities of the Secretary
                    and the Hospital upon termination of the agreement; and
                        (F) any other matters jointly identified by the
                    Secretary and the Hospital.
                (3) The nature of the arrangement between the Secretary and
            the Hospital with respect to the ownership of the facility and
            any property under the agreement, including--
                        (A) the nature of that arrangement while the
                    agreement is in force;
                        (B) the nature of that arrangement upon termination
                    of the agreement; and
                        (C) any requirement for reimbursement of the
                    Secretary by the Hospital as a result of the arrangement
                    upon termination of the agreement.
                (4) The amount of the funds made available under subsection
            (c) that the Secretary will contribute for the construction and
            equipping of the facility.
                (5) Any conditions or restrictions relating to the
            construction, equipping, or use of the facility.

        (c) Availability of Funds for Construction and Equipping of
    Facility.--(1) Of the amount authorized to be appropriated

    [[Page 111 STAT. 1819]]

    pursuant to section 301(4) for operation and maintenance for the Air
    Force, not more than $7,000,000 may be used by the Secretary of the Air
    Force to make a contribution toward the construction and equipping of
    the medical resource facility in the event that the Secretary enters
    into the agreement authorized by subsection (a). Notwithstanding any
    other provision of law, the Secretary may not use other sources of funds
    to make a contribution toward the construction or equipping of the
    facility.
        (2) Notwithstanding subsection (b)(3) regarding the ownership and
    reimbursement issues to be addressed in the agreement authorized by
    subsection (a), the Secretary may not contribute funds made available
    under paragraph (1) toward the construction and equipping of the
    facility unless the agreement requires, in exchange for the
    contribution, that the Hospital provide health care services to eligible
    individuals without charge to the Secretary or at a reduced rate. The
    value of the services provided by the Hospital shall be at least equal
    to the amount of the contribution made by the Secretary, and the
    Hospital shall complete the provision of services equal in value to the
    Secretary's contribution within seven years after the facility becomes
    operational. The provision of additional discounted services to be
    provided by the Hospital shall be included in the agreement. The value
    and types of services to be provided by the Hospital shall be negotiated
    in accordance with principles of resource-sharing agreements under the
    TRICARE program.
        (d) Notice and Wait.--The Secretary of the Air Force may not enter
    into the agreement authorized by subsection (a) until 90 days after the
    Secretary of Defense submits to the congressional defense committees the
    report required by subsection (e).
        (e) Report on Proposed Agreement.--The Secretary of Defense shall
    submit to Congress a report containing an analysis of, and
    recommendations regarding, the agreement proposed to be entered into
    under subsection (a), in particular, the implications of the agreement
    on regional health care costs and its effect on implementation of the
    TRICARE program in the region. The report shall also include a copy of
    the agreement, the results of a cost-benefit analysis conducted by the
    Secretary of the Air Force with respect to the agreement, and such other
    information with respect to the agreement as the Secretary of Defense
    and the Secretary of the Air Force considers appropriate. The cost-
    benefit analysis shall consider the effects of the agreement on
    operation and maintenance and military construction requirements at
    Holloman Air Force Base, New Mexico.
        (f) Subsequent Reports.--If the Secretary of the Air Force enters
    into the agreement authorized by subsection (a), the Secretary shall
    submit to Congress an annual report containing a revised cost-benefit
    analysis of the consequences of the agreement as in effect during the
    year covered by the report, including a full accounting of any cost
    savings realized by the Department of the Air Force as a result of the
    agreement. A report shall be submitted for each year in which the
    agreement is in effect or until the Hospital provides the full value of
    health care services required under subsection (c)(2), whichever occurs
    first.

    [[Page 111 STAT. 1820]]

    SEC. <<NOTE: 10 USC 1073 note.>>  744. DISCLOSURES OF CAUTIONARY
                INFORMATION ON PRESCRIPTION MEDICATIONS.

        (a) Regulations Required.--Not later than 180 days after the date of
    the enactment of this Act, the Secretary of Defense, in consultation
    with the administering Secretaries referred to in section 1073 of title
    10, United States Code, shall prescribe regulations to require each
    source described in subsection (d) that dispenses a prescription
    medication to a beneficiary under chapter 55 of such title to include
    with the medication the written cautionary information required by
    subsection (b).
        (b) Information To Be Disclosed.--Information required to be
    disclosed about a medication under the regulations shall include
    appropriate cautions about usage of the medication, including possible
    side effects and potentially hazardous interactions with foods.
        (c) Form of Information.--The regulations shall require that
    information be furnished in a form that, to the maximum extent
    practicable, is easily read and understood.
        (d) Covered Sources.--The regulations shall apply to the following:
                (1) Pharmacies and any other dispensers of prescription
            medications in medical facilities of the uniformed services.
                (2) Sources of prescription medications under any mail order
            pharmaceuticals program provided by any of the administering
            Secretaries under chapter 55 of title 10, United States Code.
                (3) Pharmacies paid under the Civilian Health and Medical
            Program of the Uniformed Services (including the TRICARE
            program).
                (4) Pharmacies, and any other pharmaceutical dispensers, of
            designated providers referred to in section 721(5) of the
            National Defense Authorization Act for Fiscal Year 1997 (Public
            Law 104-201; 110 Stat. 2593; 10 U.S.C. 1073 note).

    SEC. 745. <<NOTE: 10 USC 1073 note.>>  COMPETITIVE PROCUREMENT OF
                CERTAIN OPHTHALMIC SERVICES.

        (a) Competitive Procurement Required.--Beginning not later than
    October 1, 1998, the Secretary of Defense shall competitively procure
    from private-sector sources, or other sources outside of the Department
    of Defense, all ophthalmic services related to the provision of single
    vision and multivision eyeware for members of the Armed Forces, retired
    members, and certain covered beneficiaries under chapter 55 of title 10,
    United States Code, who would otherwise receive such ophthalmic services
    through the Department of Defense.
        (b) Exception.--Subsection (a) shall not apply to the extent that
    the Secretary of Defense determines that the use of sources within the
    Department of Defense to provide such ophthalmic
    services--
                (1) is necessary to meet the readiness requirements of the
            Armed Forces; or
                (2) is more cost effective.

        (c) Completion of Existing Orders.--Subsection (a) shall not apply
    to orders for ophthalmic services received on or before September 30,
    1998.

    [[Page 111 STAT. 1821]]

    SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM
                ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

        (a) Study Required.--The Comptroller General shall conduct a study
    regarding the adequacy of the maximum allowable charges for physicians
    established under the Civilian Health and Medical Program of the
    Uniformed Services (CHAMPUS) and the effect of such charges on the
    participation of physicians in CHAMPUS. The study shall include an
    evaluation of the following:
                (1) The methodology used by the Secretary of Defense to
            establish maximum allowable charges for physicians under
            CHAMPUS, and whether such methodology conforms to the
            requirements of section 1079(h) of title 10, United States Code.
                (2) The differences between the established charges under
            CHAMPUS and reimbursement rates for similar services under title
            XVIII of the Social Security Act and other health care programs.
                (3) The basis for physician complaints that the CHAMPUS
            established charges are too low.
                (4) The difficultly of CHAMPUS in ensuring physician
            compliance with the CHAMPUS established charges in the absence
            of legal mechanisms to enforce compliance, and the effect of
            noncompliance on patient out-of-pocket expenses.
                (5) The effect of the established charges under CHAMPUS on
            the participation of physicians in CHAMPUS, and the extent and
            success of Department of Defense efforts to increase physician
            participation in areas with low participation rates.

        (b) Submission of Report.--Not later than March 1, 1998, the
    Comptroller General shall submit to Congress a report containing the
    results of the study required by subsection (a).

    SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY
                PROGRAMS.

        (a) Study.--Not later than March 31, 1998, the Comptroller General
    shall submit to Congress a study evaluating the pharmacy programs of the
    Department of Defense. The study shall examine the impact of such
    pharmacy programs on the aggregate cost, quality, and accessibility of
    health care provided to covered beneficiaries under chapter 55 of title
    10, United States Code, and shall include an examination of the
    following:
                (1) The merits and feasibility of establishing a uniform
            formulary for military treatment facility pharmacies and
            civilian contractor pharmacy benefit administrators.
                (2) The reasons that military treatment facilities deny
            covered beneficiaries access to pharmacy care and shift such
            beneficiaries to other sources of pharmacy care.
                (3) The merits and feasibility of using private sector cost
            control mechanisms implemented by authorized civilian
            contractors in the Department of Defense medical programs, and
            the existence of any barriers to the use of such mechanisms,
            including factors that may undermine the incentives of such
            contractors to optimize treatment outcomes in managing the care
            of covered beneficiaries without exceeding budgeted resources.
                (4) The cost impacts, if any, of the use of commercial
            managed care methods of furnishing pharmaceuticals to covered
            beneficiaries by TRICARE program contractors instead of

    [[Page 111 STAT. 1822]]

            procuring pharmaceuticals at discounted prices pursuant to
            section 8126 of title 38, United States Code.
                (5) The existence of options for increasing the discounts
            available to TRICARE program contractors without undermining
            controls for preventing diversion of items procured by the
            Department of Defense to nonmilitary populations.

        (b) <<NOTE: Reports.>>  Response to Study.--Not later than 90 days
    after the Comptroller General submits to Congress the study required by
    subsection (a), the Secretary of Defense shall submit to Congress a
    report on the feasibility and advisability of implementing changes to
    the pharmacy programs of the Department of Defense based on the findings
    and conclusions of the study.

    SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION
                PROGRAM.

        (a) Study Required.--The Comptroller General shall conduct a study
    to evaluate the validity of the recommendations made by the Medical
    Education Policy Council of the Bureau of Medicine and Surgery of the
    Navy regarding restructuring the graduate medical education program of
    the Department of the Navy. The study shall specifically address the
    Council's recommendations relating to residency training conducted at
    the Naval Medical Center, Portsmouth, Virginia, and the National Naval
    Medical Center, Bethesda, Maryland.
        (b) Submission of Report.--Not later than March 1, 1998, the
    Comptroller General shall submit to Congress and the Secretary of the
    Navy a report containing the results of the study required by subsection
    (a).
        (c) Moratorium on Restructuring.--Until the report required by
    subsection (b) is submitted to Congress, the Secretary of the Navy may
    not make any change in the types of residency programs conducted under
    the Navy graduate medical education program or the locations at which
    such residency programs are conducted or otherwise restructure the Navy
    graduate medical education program.

    <<NOTE: Reports.>> SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY
                MAIL PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED
                BENEFICIARIES.

        Not later than six months after the date of the enactment of this
    Act, the Secretary of Defense shall submit to Congress a report
    regarding the feasibility and advisability of expanding the category of
    persons eligible to participate in the demonstration project for the
    purchase of prescription pharmaceuticals by mail, as required by section
    702(a) of the National Defense Authorization Act for Fiscal Year 1993
    (Public Law 102-484; 10 U.S.C. 1079 note), to include persons referred
    to in subsection (c) of section 1086 of title 10, United States Code,
    who are covered by subsection (d)(1) of such section and reside in the
    United States outside of the catchment area of a medical treatment
    facility of the uniformed services.

    SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL
                FACILITIES IN NATIONAL CAPITAL REGION.

        (a) Study Required.--The Comptroller General shall conduct a study
    to evaluate the requirements for Army, Navy, and Air Force medical
    facilities in the National Capital Region (as defined

    [[Page 111 STAT. 1823]]

    in section 2674(f)(2) of title 10, United States Code). The study
    shall--
                (1) specifically address requirements with respect to
            geography, facilities, integrated residencies, and medical
            environments; and
                (2) provide specific recommendations with respect to how
            medical and health care provided by these facilities may be
            better coordinated to more efficiently serve, throughout the
            National Capital Region, members of the Armed Forces on active
            duty and covered beneficiaries under chapter 55 of title 10,
            United States Code.

        (b) Submission of Report.--Not later than six months after the date
    of the enactment of this Act, the Comptroller General shall submit to
    Congress and the Secretary of Defense a report containing the results of
    the study required by subsection (a).

    SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES
                FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.

        (a) Report.--Not later than March 30, 1998, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the effectiveness of the policies and programs of the Department of
    Defense intended to promote healthy lifestyles for members of the Armed
    Forces and their dependents.
        (b) Policies and Programs To Be Assessed.--The report under
    subsection (a) shall include an assessment of the effectiveness of the
    following:
                (1) Programs intended to educate members of the Armed Forces
            and their dependents about the potential health consequences of
            the use of alcohol and tobacco.
                (2) Policies of the commissaries, post exchanges, and
            service clubs, and for entertainment activities of the
            Department of Defense, relating to the sale and use of alcohol
            and tobacco.
                (3) Programs intended to provide support to members of the
            Armed Forces and their dependents who choose to reduce or
            eliminate their use of alcohol or tobacco.
                (4) Any other policies or programs intended to promote
            healthy lifestyles for members of the Armed Forces and their
            dependents.

    SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.

        (a) Findings.--Congress makes the following findings:
                (1) Many retired military personnel believe that they were
            promised lifetime health care in exchange for 20 or more years
            of service.
                (2) Military retirees are the only Federal Government
            personnel who have been prevented from using their employer-
            provided health care at or after 65 years of age.
                (3) Military health care has become increasingly difficult
            to obtain for military retirees as the Department of Defense
            reduces its health care infrastructure.
                (4) Military retirees deserve to have a health care program
            that is at least comparable with that of retirees from civilian
            employment by the Federal Government.

    [[Page 111 STAT. 1824]]

                (5) The availability of quality, lifetime health care is a
            critical recruiting incentive for the Armed Forces.
                (6) Quality health care is a critical aspect of the quality
            of life of the men and women serving in the Armed Forces.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the United States has incurred a moral obligation to
            provide health care to members and former members of the Armed
            Forces who are entitled to retired or retainer pay (or its
            equivalent);
                (2) it is, therefore, necessary to provide quality,
            affordable health care to such retirees; and
                (3) Congress and the President should take steps to address
            the problems associated with the availability of health care for
            such retirees within two years after the date of the enactment
            of this Act.

                        Subtitle F--Persian Gulf Illness

    <<NOTE: 10 USC 1074 note.>> SEC. 761. DEFINITIONS.

        For purposes of this subtitle:
                (1) The term ``Gulf War illness'' means any one of the
            complex of illnesses and symptoms that might have been
            contracted by members of the Armed Forces as a result of service
            in the Southwest Asia theater of operations during the Persian
            Gulf War.
                (2) The term ``Persian Gulf War'' has the meaning given that
            term in section 101 of title 38, United States Code.
                (3) The term ``Persian Gulf veteran'' means an individual
            who served on active duty in the Armed Forces in the Southwest
            Asia theater of operations during the Persian Gulf War.
                (4) The term ``contingency operation'' has the meaning given
            that term in section 101(a) of title 10, United States Code, and
            includes a humanitarian operation, peacekeeping operation, or
            similar operation.

    <<NOTE: 10 USC 1074 note.>> SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR
                PERSIAN GULF VETERANS.

        (a) Plan Required.--The Secretary of Defense and the Secretary of
    Veterans Affairs, acting jointly, shall prepare a plan to provide
    appropriate health care to Persian Gulf veterans (and dependents
    eligible by law) who suffer from a Gulf War illness.
        (b) Contents of Plan.--In preparing the plan, the Secretaries
    shall--
                (1) use the presumptions of service connection and illness
            specified in paragraphs (1) and (2) of section 721(d) of the
            National Defense Authorization Act for Fiscal Year 1995 (Public
            Law 103-337; 10 U.S.C. 1074 note) to determine the Persian Gulf
            veterans (and dependents eligible by law) who should be covered
            by the plan;
                (2) consider the need and methods available to provide
            health care services to Persian Gulf veterans who are no longer
            on active duty in the Armed Forces, such as Persian Gulf
            veterans who are members of the reserve components and Persian
            Gulf veterans who have been separated from the Armed Forces; and

    [[Page 111 STAT. 1825]]

                (3) estimate the costs to the Government of providing full
            or partial health care services under the plan to covered
            Persian Gulf veterans (and covered dependents eligible by law).

        (c) Follow-up Treatment.--The plan required by subsection (a) shall
    specifically address the measures to be used to monitor the quality,
    appropriateness, and effectiveness of, and patient satisfaction with,
    health care services provided to Persian Gulf veterans after their
    initial medical examination as part of registration in the Persian Gulf
    War Veterans Health Registry or the Comprehensive Clinical Evaluation
    Program.
        (d) Submission of Plan.--Not later than March 1, 1998, the
    Secretaries shall submit to Congress the plan required by subsection
    (a).

    SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR
                PHYSICAL EVALUATION BOARDS.

        Not later than March 1, 1998, the Comptroller General shall submit
    to Congress a study evaluating the revisions made by the Secretary of
    Defense (as required by section 721(e) of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C.
    1074 note)) to the Physical Evaluation Board criteria used to set
    disability ratings for members of the Armed Forces who are no longer
    medically qualified for continuation on active duty so as to ensure
    accurate disability ratings related to a diagnosis of a Gulf War
    illness.

    SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST ASIA
                DURING THE PERSIAN GULF WAR.

        (a) In General.--Chapter 55 of title 10, United States Code, is
    amended by inserting after section 1074d the following new section:

    ``Sec. 1074e. Medical care: certain Reserves who served in Southwest
                            Asia during the Persian Gulf Conflict

        ``(a) Entitlement to Medical Care.--A member of the armed forces
    described in subsection (b) is entitled to medical care for a qualifying
    Persian Gulf symptom or illness to the same extent and under the same
    conditions (other than the requirement that the member be on active
    duty) as a member of a uniformed service who is entitled to such care
    under section 1074(a) of this title.
        ``(b) Covered Members.--Subsection (a) applies to a member of a
    reserve component who--
                ``(1) is a Persian Gulf veteran;
                ``(2) has a qualifying Persian Gulf symptom or illness; and
                ``(3) is not otherwise entitled to medical care for such
            symptom or illness under this chapter and is not otherwise
            eligible for hospital care and medical services for such symptom
            or illness under section 1710 of title 38.

        ``(c) Definitions.--In this section:
                ``(1) The term `Persian Gulf veteran' means a member of the
            armed forces who served on active duty in the Southwest Asia
            theater of operations during the Persian Gulf Conflict.
                ``(2) The term `qualifying Persian Gulf symptom or illness'
            means, with respect to a member described in subsection (b), a
            symptom or illness--
                        ``(A) that the member registered before September 1,
                    1997, in the Comprehensive Clinical Evaluation Program

    [[Page 111 STAT. 1826]]

                    of the Department of Defense and that is presumed under
                    section 721(d) of the National Defense Authorization Act
                    for Fiscal Year 1995 (10 U.S.C. 1074 note) to be a
                    result of service in the Southwest Asia theater of
                    operations during the Persian Gulf Conflict; or
                        ``(B) that the member registered before September 1,
                    1997, in the Persian Gulf War Veterans Health Registry
                    maintained by the Department of Veterans Affairs
                    pursuant to section 702 of the Persian Gulf War
                    Veterans' Health Status Act (38 U.S.C. 527 note).''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1074d the following new item:

    ``1074e. Medical care: certain Reserves who served in Southwest Asia
               during the Persian Gulf Conflict.''.

    SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED OVERSEAS
                IN CONTINGENCY OR COMBAT OPERATIONS.

        (a) System Required.--(1) Chapter 55 of title 10, United States
    Code, is amended by inserting after section 1074e (as added by section
    764) the following new section:

    ``Sec. 1074f. Medical tracking system for members deployed overseas

        ``(a) System Required.--The Secretary of Defense shall establish a
    system to assess the medical condition of members of the armed forces
    (including members of the reserve components) who are deployed outside
    the United States or its territories or possessions as part of a
    contingency operation (including a humanitarian operation, peacekeeping
    operation, or similar operation) or combat operation.
        ``(b) Elements of System.--The system described in subsection (a)
    shall include the use of predeployment medical examinations and
    postdeployment medical examinations (including an assessment of mental
    health and the drawing of blood samples) to accurately record the
    medical condition of members before their deployment and any changes in
    their medical condition during the course of their deployment. The
    postdeployment examination shall be conducted when the member is
    redeployed or otherwise leaves an area in which the system is in
    operation (or as soon as possible thereafter).
        ``(c) Recordkeeping.--The results of all medical examinations
    conducted under the system, records of all health care services
    (including immunizations) received by members described in subsection
    (a) in anticipation of their deployment or during the course of their
    deployment, and records of events occurring in the deployment area that
    may affect the health of such members shall be retained and maintained
    in a centralized location to improve future access to the records.
        ``(d) Quality Assurance.--The Secretary of Defense shall establish a
    quality assurance program to evaluate the success of the system in
    ensuring that members described in subsection (a) receive predeployment
    medical examinations and postdeployment medical examinations and that
    the recordkeeping requirements with respect to the system are met.''.

    [[Page 111 STAT. 1827]]

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1074e (as added
    by section 764) the following new item:

    ``1074f. Medical tracking system for members deployed overseas.''.

        (b) Report.--Not later than March 1, 1998, the Secretary of Defense
    shall submit to Congress an analysis of the administrative implications
    of establishing and administering the medical tracking system required
    by section 1074f of title 10, United States Code, as added by subsection
    (a). The report shall include, for fiscal year 1999 and the 5 successive
    fiscal years, a separate analysis and specification of the projected
    costs and operational considerations for each of the following required
    aspects of the system:
                (1) Predeployment medical examinations.
                (2) Postdeployment medical examinations.
                (3) Recordkeeping.

    SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS UNAPPROVED
                FOR THEIR APPLIED USE.

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

    ``Sec. 1107. Notice of use of an investigational new drug or a drug
                            unapproved for its applied use

        ``(a) Notice Required.--(1) Whenever the Secretary of Defense
    requests or requires a member of the armed forces to receive an
    investigational new drug or a drug unapproved for its applied use, the
    Secretary shall provide the member with notice containing the
    information specified in subsection (d).
        ``(2) The Secretary shall also ensure that health care providers who
    administer an investigational new drug or a drug unapproved for its
    applied use, or who are likely to treat members who receive such a drug,
    receive the information required to be provided under paragraphs (3) and
    (4) of subsection (d).
        ``(b) Time of Notice.--The notice required to be provided to a
    member under subsection (a)(1) shall be provided before the
    investigational new drug or drug unapproved for its applied use is first
    administered to the member, if practicable, but in no case later than 30
    days after the drug is first administered to the member.
        ``(c) Form of Notice.--The notice required under subsection (a)(1)
    shall be provided in writing unless the Secretary of Defense determines
    that the use of written notice is impractical because of the number of
    members receiving the investigational new drug or drug unapproved for
    its applied use, time constraints, or similar reasons. If the Secretary
    provides notice under subsection (a)(1) in a form other than in writing,
    the Secretary shall submit to Congress a report describing the
    notification method used and the reasons for the use of the alternative
    method.
        ``(d) Content of Notice.--The notice required under subsection
    (a)(1) shall include the following:
                ``(1) Clear notice that the drug being administered is an
            investigational new drug or a drug unapproved for its applied
            use.
                ``(2) The reasons why the investigational new drug or drug
            unapproved for its applied use is being administered.

    [[Page 111 STAT. 1828]]

                ``(3) Information regarding the possible side effects of the
            investigational new drug or drug unapproved for its applied use,
            including any known side effects possible as a result of the
            interaction of such drug with other drugs or treatments being
            administered to the members receiving such drug.
                ``(4) Such other information that, as a condition of
            authorizing the use of the investigational new drug or drug
            unapproved for its applied use, the Secretary of Health and
            Human Services may require to be disclosed.

        ``(e) Records of Use.--The Secretary of Defense shall ensure that
    the medical records of members accurately document--
                ``(1) the receipt by members of any investigational new drug
            or drug unapproved for its applied use; and
                ``(2) the notice required by subsection (a)(1).

        ``(f) Definitions.--In this section:
                ``(1) The term `investigational new drug' means a drug
            covered by section 505(i) of the Federal Food, Drug, and
            Cosmetic Act (21 U.S.C. 355(i)).
                ``(2) The term `drug unapproved for its applied use' means a
            drug administered for a use not described in the approved
            labeling of the drug under section 505 of the Federal Food,
            Drug, and Cosmetic Act (21 U.S.C. 355).''.

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

    ``1107. Notice of use of an investigational new drug or a drug
               unapproved for its
               applied use.''.

    SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF
                OPERATIONS.

        Not later than March 1, 1998, the Secretary of Defense shall submit
    to Congress a report containing a plan for collecting and maintaining
    information regarding the daily location of units of the Armed Forces,
    and to the extent practicable individual members of such units, serving
    in a theater of operations during a contingency operation or combat
    operation.

    SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED
                UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, AND
                SIMILAR HAZARDS IN A THEATER OF OPERATIONS.

        It is the sense of Congress that the Secretary of Defense, in
    conjunction with the Chairman of the Joint Chiefs of Staff, should take
    such actions as are necessary to ensure that the units of the Armed
    Forces deployed in the theater of operations for each contingency
    operation or combat operation include specialized units with sufficient
    capability (including personnel with the appropriate training and
    expertise, and the appropriate equipment) to detect and monitor the
    presence of chemical, biological, and similar hazards to which members
    of the Armed Forces could be exposed in that theater during the
    operation.

    SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF WAR
                ILLNESSES.

        Not later than March 1, 1998, the Secretary of Defense shall submit
    to Congress a report evaluating the effectiveness of medical research
    initiatives regarding Gulf War illnesses. The report shall address the
    following:

    [[Page 111 STAT. 1829]]

                (1) The type and effectiveness of previous research efforts,
            including the activities undertaken pursuant to section 743 of
            the National Defense Authorization Act for Fiscal Year 1997
            (Public Law 104-201; 10 U.S.C. 1074 note), section 722 of the
            National Defense Authorization Act for Fiscal Year 1995 (Public
            Law 103-337; 10 U.S.C. 1074 note), and sections 270 and 271 of
            the National Defense Authorization Act for Fiscal Year 1994
            (Public Law 103-160; 107 Stat. 1613).
                (2) Recommendations regarding additional research regarding
            Gulf War illnesses, including research regarding the nature and
            causes of Gulf War illnesses and appropriate treatments for such
            illnesses.
                (3) The adequacy of Federal funding and the need for
            additional funding for medical research initiatives regarding
            Gulf War illnesses.

    SEC. 770. <<NOTE: 10 USC 1074 note.>>  PERSIAN GULF ILLNESS CLINICAL
                TRIALS PROGRAM.

        (a) Findings.--Congress finds the following:
                (1) There are many ongoing studies that investigate risk
            factors which may be associated with the health problems
            experienced by Persian Gulf veterans; however, there have been
            no studies that examine health outcomes and the effectiveness of
            the treatment received by such veterans.
                (2) The medical literature and testimony presented in
            hearings on Gulf War illnesses indicate that there are
            therapies, such as cognitive behavioral therapy, that have been
            effective in treating patients with symptoms similar to those
            seen in many Persian Gulf veterans.

        (b) Establishment of Program.--The Secretary of Defense and the
    Secretary of Veterans Affairs, acting jointly, shall establish a program
    of cooperative clinical trials at multiple sites to assess the
    effectiveness of protocols for treating Persian Gulf veterans who suffer
    from ill-defined or undiagnosed conditions. Such protocols shall include
    a multidisciplinary treatment model, of which cognitive behavioral
    therapy is a component.
        (c) Funding.--Of the funds authorized to be appropriated in section
    201(1) for research, development, test, and evaluation for the Army, the
    sum of $4,500,000 shall be available for program element 62787A (medical
    technology) in the budget of the Department of Defense for fiscal year
    1998 to carry out the clinical trials program established pursuant to
    subsection (b).

    SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

        (a) Findings.--Congress makes the following findings:
                (1) Americans served in the Persian Gulf Conflict of 1991 in
            defense of vital national security interests of the United
            States.
                (2) It was known to United States intelligence and military
            commanders that biological and chemical agents were in theater
            throughout the conflict.
                (3) An undetermined amount of these agents were released
            into theater.
                (4) A large number of United States military veterans and
            allied veterans who served in the Southwest Asia theater of
            operations have been stricken with a variety of severe
            illnesses.

    [[Page 111 STAT. 1830]]

                (5) Previous efforts to discern the causes of those
            illnesses have been inadequate, and those illnesses are
            affecting the health of both veterans and their families.

        (b) Sense of Congress.--It is the sense of Congress that all
    promising technology and treatments relating to Gulf War illnesses
    should be fully explored and tested to facilitate treatment for members
    of the Armed Forces and veterans who served the United States in the
    Persian Gulf conflict and are stricken with unexplainable illness.

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

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

    Sec. 801. Expansion of authority to enter into contracts crossing fiscal
               years to all severable service contracts not exceeding a
               year.
    Sec. 802. Vesting of title in the United States under contracts paid
               under progress payment arrangements or similar arrangements.
    Sec. 803. Restriction on undefinitized contract actions.
    Sec. 804. Limitation and report on payment of restructuring costs under
               defense contracts.
    Sec. 805. Increased price limitation on purchases of right-hand drive
               vehicles.
    Sec. 806. Multiyear procurement contracts.
    Sec. 807. Audit of procurement of military clothing and clothing-related
               items by military installations in the United States.
    Sec. 808. Limitation on allowability of compensation for certain
               contractor personnel.
    Sec. 809. Elimination of certification requirement for grants.
    Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
    Sec. 811. Item-by-item and country-by-country waivers of domestic source
               limitations.

                   Subtitle B--Acquisition Assistance Programs

    Sec. 821. One-year extension of pilot mentor-protege program.
    Sec. 822. Test program for negotiation of comprehensive subcontracting
               plans.

                      Subtitle C--Administrative Provisions

    Sec. 831. Retention of expired funds during the pendency of contract
               litigation.
    Sec. 832. Protection of certain information from disclosure.
    Sec. 833. Unit cost reports.
    Sec. 834. Plan for providing contracting information to general public
               and small businesses.
    Sec. 835. Two-year extension of crediting of certain purchases toward
               meeting
               subcontracting goals.

                            Subtitle D--Other Matters

    Sec. 841. Repeal of certain acquisition requirements and reports
    Sec. 842. Use of major range and test facility installations by
               commercial entities.
    Sec. 843. Requirement to develop and maintain list of firms not eligible
               for defense contracts.
    Sec. 844. Sense of Congress regarding allowability of costs of employee
               stock ownership plans.
    Sec. 845. Expansion of personnel eligible to participate in
               demonstration project
               relating to acquisition workforce.
    Sec. 846. Time for submission of annual report relating to Buy American
               Act.
    Sec. 847. Repeal of requirement for contractor guarantees on major
               weapon
               systems.
    Sec. 848. Requirements relating to micro-purchases.
    Sec. 849. Promotion rate for officers in an acquisition corps.
    Sec. 850. Use of electronic commerce in Federal procurement.
    Sec. 851. Conformance of policy on performance based management of
               civilian
               acquisition programs with policy established for defense
               acquisition programs.

    [[Page 111 STAT. 1831]]

    Sec. 852. Modification of process requirements for the solutions-based
               contracting pilot program.
    Sec. 853. Guidance and standards for defense acquisition workforce
               training
               requirements.
    Sec. 854. Study and report to Congress assessing dependence on foreign
               sources for resistors and capacitors.
    Sec. 855. Department of Defense and Federal Prison Industries joint
               study.

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

    SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING FISCAL
                YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT EXCEEDING A
                YEAR.

        (a) Expanded Authority.--Section 2410a of title 10, United States
    Code, is amended to read as follows:

    ``Sec. 2410a. Severable service contracts for periods crossing fiscal
                            years

        ``(a) Authority.--The Secretary of Defense, the Secretary of a
    military department, or the Secretary of Transportation with respect to
    the Coast Guard when it is not operating as a service in the Navy, may
    enter into a contract for procurement of severable services for a period
    that begins in one fiscal year and ends in the next fiscal year if
    (without regard to any option to extend the period of the contract) the
    contract period does not exceed one year.
        ``(b) Obligation of Funds.--Funds made available for a fiscal year
    may be obligated for the total amount of a contract entered into under
    the authority of subsection (a).''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 141 of such title is
    amended to read as follows:

    ``2410a. Severable service contracts for periods crossing fiscal
               years.''.

    SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID
                UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR ARRANGEMENTS.

        Section 2307 of title 10, United States Code, is amended--
                (1) by redesignating subsection (h) as subsection (i); and
                (2) by inserting after subsection (g) the following new
            subsection (h):

        ``(h) Vesting of Title in the United States.--If a contract paid by
    a method authorized under subsection (a)(1) provides for title to
    property to vest in the United States, the title to the property shall
    vest in accordance with the terms of the contract, regardless of any
    security interest in the property that is asserted before or after the
    contract is entered into.''.

    SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

        (a) Applicability of Waiver Authority to Humanitarian or
    Peacekeeping Operations.--Section 2326(b)(4) of title 10, United States
    Code, is amended to read as follows:
        ``(4) The head of an agency may waive the provisions of this
    subsection with respect to a contract of that agency if that head

    [[Page 111 STAT. 1832]]

    of an agency determines that the waiver is necessary in order to support
    any of the following operations:
                ``(A) A contingency operation.
                ``(B) A humanitarian or peacekeeping operation.''.

        (b) Humanitarian or Peacekeeping Operation Defined.--Section 2302(7)
    of such title is amended--
                (1) by striking out ``(7)(A)'' and inserting in lieu thereof
            ``(7)''; and
                (2) by striking out ``(B) In subparagraph (A), the'' and
            inserting in lieu thereof ``(8) The''.

    SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER
                DEFENSE CONTRACTS.

        (a) In General.--(1) Chapter 137 of title 10, United States Code, is
    amended by inserting after section 2324 the following new section:

    ``Sec. 2325. Restructuring costs

        ``(a) Limitation on Payment of Restructuring Costs.--(1) The
    Secretary of Defense may not pay, under section 2324 of this title, a
    defense contractor for restructuring costs associated with a business
    combination of the contractor unless the Secretary determines in writing
    either--
                ``(A) that the amount of projected savings for the
            Department of Defense associated with the restructuring will be
            at least twice the amount of the costs allowed; or
                ``(B) that the amount of projected savings for the
            Department of Defense associated with the restructuring will
            exceed the amount of the costs allowed and that the business
            combination will result in the preservation of a critical
            capability that otherwise might be lost to the Department.

        ``(2) The Secretary may not delegate the authority to make a
    determination under paragraph (1) to an official of the Department of
    Defense below the level of an Assistant Secretary of Defense.
        ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000,
    2001, and 2002, the Secretary of Defense shall submit to Congress a
    report that contains, with respect to business combinations occurring on
    or after August 15, 1994, the following:
                ``(1) For each defense contractor to which the Secretary has
            paid, under section 2324 of this title, restructuring costs
            associated with a business combination, a summary of the
            following:
                        ``(A) An estimate of the amount of savings for the
                    Department of Defense associated with the restructuring
                    that has been realized as of the end of the preceding
                    calendar year.
                        ``(B) An estimate of the amount of savings for the
                    Department of Defense associated with the restructuring
                    that is expected to be achieved on defense contracts.
                ``(2) An identification of any business combination for
            which the Secretary has paid restructuring costs under section
            2324 of this title during the preceding calendar year and, for
            each such business combination--
                        ``(A) the supporting rationale for allowing such
                    costs;

    [[Page 111 STAT. 1833]]

                        ``(B) factual information associated with the
                    determination made under subsection (a) with respect to
                    such costs; and
                        ``(C) a discussion of whether the business
                    combination would have proceeded without the payment of
                    restructuring costs by the Secretary.
                ``(3) For business combinations of major defense contractors
            that took place during the year preceding the year of the
            report--
                        ``(A) an assessment of any potentially adverse
                    effects that the business combinations could have on
                    competition for Department of Defense contracts
                    (including potential horizontal effects, vertical
                    effects, and organizational conflicts of interest), the
                    national technology and industrial base, or innovation
                    in the defense industry; and
                        ``(B) the actions taken to mitigate the potentially
                    adverse effects.

        ``(c) Definition.--In this section, the term `business combination'
    includes a merger or acquisition.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2324 the
    following new item:

    ``2325. Restructuring costs.''.

        (b) GAO <<NOTE: 10 USC 2325 note.>>  Reports.--(1) Not later than
    April 1, 1998, the Comptroller General shall--
                (A) in consultation with appropriate officials in the
            Department of Defense--
                        (i) identify major market areas affected by business
                    combinations of defense contractors since January 1,
                    1990; and
                        (ii) develop a methodology for determining the
                    savings from business combinations of defense
                    contractors on the prices paid on particular defense
                    contracts; and
                (B) submit to the congressional defense committees a report
            describing, for each major market area identified pursuant to
            subparagraph (A)(i), the changes in numbers of businesses
            competing for major defense contracts since January 1, 1990.

        (2) Not later than December 1, 1998, the Comptroller General shall
    submit to the congressional defense committees a report containing the
    following:
                (A) Updated information on--
                        (i) restructuring costs of business combinations
                    paid by the Department of Defense pursuant to
                    certifications under section 818 of the National Defense
                    Authorization Act for Fiscal Year 1995, and
                        (ii) savings realized by the Department of Defense
                    as a result of the business combinations for which the
                    payment of restructuring costs was so certified.
                (B) An assessment of the savings from business combinations
            of defense contractors on the prices paid on a meaningful sample
            of defense contracts, determined in accordance with the
            methodology developed pursuant to paragraph (1)(A)(ii), as well
            as a description of the methodology.
                (C) Any recommendations that the Comptroller General
            considers appropriate.

    [[Page 111 STAT. 1834]]

        (3) In this subsection, the term ``business combination'' has the
    meaning given that term in section 2325(c) of title 10, United States
    Code, as added by subsection (a).
        (c) Effective Date.--Section <<NOTE: 10 USC 2325 note.>>  2325(a) of
    title 10, United States Code, as added by subsection (a), shall apply
    with respect to business combinations that occur after the date of the
    enactment of this Act.

        (d) Repeal of Superseded Provisions.--Subsections (a) and (g)(3) of
    section 818 of the National Defense Authorization Act for Fiscal Year
    1995 (10 U.S.C. 2324 note) are repealed.

    SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE
                VEHICLES.

        Section 2253(a)(2) of title 10, United States Code, is amended by
    striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.

    SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

        (a) Requirement for Authorization by Law in Acts Other Than
    Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10,
    United States Code, is amended by adding at the end the following new
    paragraph:
        ``(3) In the case of the Department of Defense, a multiyear contract
    in an amount equal to or greater than $500,000,000 may not be entered
    into for any fiscal year under this section unless the contract is
    specifically authorized by law in an Act other than an appropriations
    Act.''.
        (2) Paragraph <<NOTE: 10 USC 2306b note.>>  (3) of section 2306b(i)
    of title 10, United States Code, as added by paragraph (1), shall not
    apply with respect to a contract authorized by law before the date of
    the enactment of this Act.

        (b) Codification of Annual Recurring Multiyear Procurement
    Requirements.--(1) Such section is further amended by adding at the end
    the following new subsection:
        ``(l) Various Additional Requirements With Respect to Multiyear
    Defense Contracts.--(1)(A) The head of an agency may not initiate a
    contract described in subparagraph (B) unless the congressional defense
    committees are notified of the proposed contract at least 30 days in
    advance of the award of the proposed contract.
        ``(B) Subparagraph (A) applies to the following contracts:
                ``(i) A multiyear contract--
                        ``(I) that employs economic order quantity
                    procurement in excess of $20,000,000 in any one year of
                    the contract; or
                        ``(II) that includes an unfunded contingent
                    liability in excess of $20,000,000.
                ``(ii) Any contract for advance procurement leading to a
            multiyear contract that employs economic order quantity
            procurement in excess of $20,000,000 in any one year.

        ``(2) The head of an agency may not initiate a multiyear contract
    for which the economic order quantity advance procurement is not funded
    at least to the limits of the Government's liability.
        ``(3) The head of an agency may not initiate a multiyear procurement
    contract for any system (or component thereof) if the value of the
    multiyear contract would exceed $500,000,000 unless authority for the
    contract is specifically provided in an appropriations Act.

    [[Page 111 STAT. 1835]]

        ``(4) The head of an agency may not terminate a multiyear
    procurement contract until 10 days after the date on which notice of the
    proposed termination is provided to the congressional defense
    committees.
        ``(5) The execution of multiyear contracting authority shall require
    the use of a present value analysis to determine lowest cost compared to
    an annual procurement.
        ``(6) This subsection does not apply to the National Aeronautics and
    Space Administration or to the Coast Guard.
        ``(7) In this subsection, the term `congressional defense
    committees' means the following:
                ``(A) The Committee on Armed Services of the Senate and the
            Subcommittee on Defense of the Committee on Appropriations of
            the Senate.
                ``(B) The Committee on National Security of the House of
            Representatives and the Subcommittee on National Security of the
            Committee on Appropriations of the House of Representatives.''.

        (2) The amendment made <<NOTE: Effective date. 10 USC 2306b note.>>
    by paragraph (1) shall take effect on October 1, 1998.

        (c) Technical and Conforming Amendments.--Such section is further
    amended as follows:
                (1) Subsection (a) is amended--
                        (A) by striking out ``finds--'' in the matter
                    preceding paragraph (1) and inserting in lieu thereof
                    ``finds each of the following:'';
                        (B) by capitalizing the initial letter of the first
                    word in each of paragraphs (1) through (6);
                        (C) by striking out the semicolon at the end of
                    paragraphs (1) through (4) and inserting in lieu thereof
                    a period; and
                        (D) by striking out ``; and'' at the end of
                    paragraph (5) and inserting in lieu thereof a period.
                (2) Subsection (d)(1) is amended by striking out ``paragraph
            (1)'' and inserting in lieu thereof ``subsection (a)''.
                (3) Subsection (i)(1) is amended by striking ``five-year''
            and inserting in lieu thereof ``future-years''.

    SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-RELATED
                ITEMS BY MILITARY INSTALLATIONS IN THE UNITED STATES.

        (a) Audit Requirement.--Not later than September 30, 1998, the
    Inspector General of the Department of Defense shall perform an audit of
    purchases of military clothing and clothing-related items in excess of
    the micro-purchase threshold by military installations during fiscal
    years 1996 and 1997 to determine the extent to which such installations
    procured military clothing and clothing-related items in violation of
    the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years.
        (b) Installations To Be Audited.--The audit under subsection (a)--
                (1) shall include an audit of the procurement of military
            clothing and clothing-related items by a military installation
            of each of the Army, Navy, Air Force, and Marine Corps; and
                (2) shall not cover procurements of clothing and clothing-
            related items by the Defense Logistics Agency.

    [[Page 111 STAT. 1836]]

        (c) Definition.--The term ``micro-purchase threshold'' has the
    meaning provided by section 32(f) of the Office of Federal Procurement
    Policy Act (41 U.S.C. 428(f)).
        (d) Report.--Not later than October 31, 1998, the Inspector General
    of the Department of Defense shall submit to Congress a report on the
    results of the audit performed under subsection (a).

    SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN
                CONTRACTOR PERSONNEL.

        (a) Certain Compensation Not Allowable as Costs Under Defense
    Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United
    States Code, is amended by adding at the end the following:
                ``(P) Costs of compensation of senior executives of
            contractors for a fiscal year, regardless of the contract
            funding source, to the extent that such compensation exceeds the
            benchmark compensation amount determined applicable for the
            fiscal year by the Administrator for Federal Procurement Policy
            under section 39 of the Office of Federal Procurement Policy Act
            (41 U.S.C. 435).''.

        (2) Subsection (l) of such section is amended by adding at the end
    the following:
                ``(4) The term `compensation', for a year, means the total
            amount of wages, salary, bonuses and deferred compensation for
            the year, whether paid, earned, or otherwise accruing, as
            recorded in an employer's cost accounting records for the year.
                ``(5) The term `senior executive', with respect to a
            contractor, means--
                        ``(A) the chief executive officer of the contractor
                    or any individual acting in a similar capacity for the
                    contractor;
                        ``(B) the four most highly compensated employees in
                    management positions of the contractor other than the
                    chief executive officer; and
                        ``(C) in the case of a contractor that has
                    components which report directly to the contractor's
                    headquarters, the five most highly compensated employees
                    in management positions at each such component.
                ``(6) The term `fiscal year' means a fiscal year established
            by a contractor for accounting purposes.''.

        (b) Certain Compensation Not Allowable as Costs Under Non-Defense
    Contracts.--(1) Subsection (e)(1) of section 306 of the Federal Property
    and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by
    adding at the end the following:
                ``(P) Costs of compensation of senior executives of
            contractors for a fiscal year, regardless of the contract
            funding source, to the extent that such compensation exceeds the
            benchmark compensation amount determined applicable for the
            fiscal year by the Administrator for Federal Procurement Policy
            under section 39 of the Office of Federal Procurement Policy Act
            (41 U.S.C. 435).''.

        (2) Such section is further amended by adding at the end the
    following:
        ``(m) Other Definitions.--In this section:

    [[Page 111 STAT. 1837]]

                ``(1) The term `compensation', for a fiscal year, means the
            total amount of wages, salary, bonuses and deferred compensation
            for the fiscal year, whether paid, earned, or otherwise
            accruing, as recorded in an employer's cost accounting records
            for the fiscal year.
                ``(2) The term `senior executive', with respect to a
            contractor, means--
                        ``(A) the chief executive officer of the contractor
                    or any individual acting in a similar capacity for the
                    contractor;
                        ``(B) the four most highly compensated employees in
                    management positions of the contractor other than the
                    chief executive officer; and
                        ``(C) in the case of a contractor that has
                    components which report directly to the contractor's
                    headquarters, the five most highly compensated
                    individuals in management positions at each such
                    component.
                ``(3) The term `fiscal year' means a fiscal year established
            by a contractor for accounting purposes.''.

        (c) Levels of Compensation Not Allowable.--(1) The Office of Federal
    Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding at
    the end the following:

    ``SEC. 39. LEVELS <<NOTE: 41 USC 435.>>  OF COMPENSATION OF CERTAIN
                CONTRACTOR PERSONNEL NOT ALLOWABLE AS COSTS UNDER CERTAIN
                CONTRACTS.

        ``(a) Determination Required.--For purposes of section 2324(e)(1)(P)
    of title 10, United States Code, and section 306(e)(1)(P) of the Federal
    Property and Administrative Services Act of 1949 (41 U.S.C.
    256(e)(1)(P)), the Administrator shall review commercially available
    surveys of executive compensation and, on the basis of the results of
    the review, determine a benchmark compensation amount to apply for each
    fiscal year. In making determinations under this subsection the
    Administrator shall consult with the Director of the Defense Contract
    Audit Agency and such other officials of executive agencies as the
    Administrator considers appropriate.
        ``(b) Benchmark Compensation Amount.--The benchmark compensation
    amount applicable for a fiscal year is the median amount of the
    compensation provided for all senior executives of all benchmark
    corporations for the most recent year for which data is available at the
    time the determination under subsection (a) is made.
        ``(c) Definitions.--In this section:
                ``(1) The term `compensation', for a fiscal year, means the
            total amount of wages, salary, bonuses and deferred compensation
            for the fiscal year, whether paid, earned, or otherwise
            accruing, as recorded in an employer's cost accounting records
            for the fiscal year.
                ``(2) The term `senior executive', with respect to a
            corporation, means--
                        ``(A) the chief executive officer of the corporation
                    or any individual acting in a similar capacity for the
                    corporation;
                        ``(B) the four most highly compensated employees in
                    management positions of the corporation other than the
                    chief executive officer; and

    [[Page 111 STAT. 1838]]

                        ``(C) in the case of a corporation that has
                    components which report directly to the corporate
                    headquarters, the five most highly compensated
                    individuals in management positions at each such
                    component.
                ``(3) The term `benchmark corporation', with respect to a
            fiscal year, means a publicly-owned United States corporation
            that has annual sales in excess of $50,000,000 for the fiscal
            year.
                ``(4) The term `publicly-owned United States corporation'
            means a corporation organized under the laws of a State of the
            United States, the District of Columbia, the Commonwealth of
            Puerto Rico, or a possession of the United States the voting
            stock of which is publicly traded.
                ``(5) The term `fiscal year' means a fiscal year established
            by a contractor for accounting purposes.''.

        (2) The table of sections in section 1(b) of such Act is amended by
    adding at the end the following:

    ``Sec. 39. Levels of compensation of certain contractor personnel not
               allowable as costs under certain contracts.''.

        (d) Regulations.--Regulations <<NOTE: 41 USC 435 note.>>
    implementing the amendments made by this section shall be published in
    the Federal Register not later than the effective date of the amendments
    under subsection (e).

        (e) Effective Date.--The <<NOTE: 41 USC 435 note.>>  amendments made
    by this section shall--
                (1) take effect on the date that is 90 days after the date
            of the enactment of this Act; and
                (2) apply with respect <<NOTE: Applicability.>>  to costs of
            compensation incurred after January 1, 1998, under covered
            contracts entered into before, on, or after the date of the
            enactment of this Act.

        (f) Exclusive <<NOTE: 41 USC 435 note.>>  Applicability.--
    Notwithstanding any other provision of law, no other limitation in law
    on the allowability of costs of compensation of senior executives under
    covered contracts shall apply to such costs of compensation incurred
    after January 1, 1998.

        (g) Definitions.--In <<NOTE: 41 USC 435 note.>>  this section:
                (1) The term ``covered contract'' has the meaning given such
            term 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)).
                (2) The terms ``compensation'' and ``senior executive'' have
            the meanings given such terms in section 2324(l) of title 10,
            United States Code, and section 306(m) of the Federal Property
            and Administrative Services Act of 1949.

    SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

        Section 5153 of the Drug-Free Workplace Act of 1988 (Public Law 100-
    690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking out ``has
                    certified to the granting agency that it will'' and
                    inserting in lieu thereof ``agrees to''; and
                        (B) in paragraph (2), by striking out ``certifies to
                    the agency'' and inserting in lieu thereof ``agrees'';
                    and
                (2) in subsection (b)(1)--
                        (A) by striking out subparagraph (A);

    [[Page 111 STAT. 1839]]

                        (B) by redesignating subparagraphs (B) and (C) as
                    subparagraphs (A) and (B), respectively; and
                        (C) in subparagraph (A), as so redesignated, by
                    striking out ``such certification by failing to carry
                    out''.

    SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

        (a) Repeal.--(1) Section 2405 of title 10, United States Code, is
    repealed.
        (2) The table of sections at the beginning of chapter 141 of such
    title is amended by striking out the item relating to section 2405.
        (b) Applicability.--(1) Except <<NOTE: 10 USC 2405 note.>>  as
    provided in paragraph (2), the repeal made by subsection (a) shall be
    effective with respect to claims, requests for equitable adjustment, and
    demands for payment under shipbuilding contracts that have been or are
    submitted before, on, or after the date of the enactment of this Act.

        (2) Section 2405 of title 10, United States Code, as in effect
    immediately before the date of the enactment of this Act, shall continue
    to apply to a contractor's claim, request for equitable adjustment, or
    demand for payment under a shipbuilding contract that was submitted
    before such date if--
                (A) a contracting officer denied the claim, request, or
            demand, and the period for appealing the decision to a court or
            board under the Contract Disputes Act of 1978 expired before
            such date;
                (B) a court or board of contract appeals considering the
            claim, request, or demand (including any appeal of a decision of
            a contracting officer to deny the claim, request, or demand)
            denied or dismissed the claim, request, or demand (or the
            appeal), and the action of the court or board became final and
            unappealable before such date; or
                (C) the contractor released or releases the claim, request,
            or demand.

    SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC SOURCE
                LIMITATIONS.

        (a) Item-by-Item and Country-by-Country Implementation of Certain
    Waiver Authority.--Section 2534 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(i) Implementation of Certain Waiver Authority.--(1) The Secretary
    of Defense may exercise the waiver authority described in paragraph (2)
    only if the waiver is made for a particular item listed in subsection
    (a) and for a particular foreign country.
        ``(2) This <<NOTE: Applicability.>>  subsection applies to the
    waiver authority provided by subsection (d) on the basis of the
    applicability of paragraph (2) or (3) of that subsection.

        ``(3) The waiver authority described in paragraph (2) may not be
    delegated below the Under Secretary of Defense for Acquisition and
    Technology.
        ``(4) At <<NOTE: Federal Register, publication. Notice.>>  least 15
    days before the effective date of any waiver made under the waiver
    authority described in paragraph (2), the Secretary shall publish in the
    Federal Register and submit to the congressional defense committees a
    notice of the determination to exercise the waiver authority.

    [[Page 111 STAT. 1840]]

        ``(5) Any waiver made by the Secretary under the waiver authority
    described in paragraph (2) shall be in effect for a period not greater
    than one year, as determined by the Secretary.''.
        (b) Effective <<NOTE: Applicability. 10 USC 2534 note.>>  Date.--
    Subsection (i) of section 2534 of such title, as added by subsection
    (a), shall apply with respect to--
                (1) contracts and subcontracts entered into on or after the
            date of the enactment of this Act; and
                (2) options for the procurement of items that are exercised
            after such date under contracts that are entered into before
            such date if the option prices are adjusted for any reason other
            than the application of a waiver granted under subsection (d) of
            such section 2534, on the basis of the applicability of
            paragraph (2) or (3) of that subsection.

                   Subtitle B--Acquisition Assistance Programs

    SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

        (a) One-Year Extension of Pilot Mentor-Protege Program.--Section
    831(j) of the National Defense Authorization Act for Fiscal Year 1991
    (10 U.S.C. 2302 note) is amended--
                (1) in paragraph (1), by striking out ``1998'' and inserting
            in lieu thereof ``1999'';
                (2) in paragraph (2), by striking out ``1999'' and inserting
            in lieu thereof ``2000''; and
                (3) in paragraph (3), by striking out ``1999'' and inserting
            in lieu thereof ``2000''.

        (b) Study on Implementation of Pilot Mentor-Protege Program.--(1)
    The Comptroller General shall conduct a study on the implementation of
    the Mentor-Protege Program established under section 831 of the National
    Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) and
    the extent to which the program is achieving the purposes established
    under that section.
        (2) The study also shall include the following:
                (A) A review of the manner in which funds for the program
            have been obligated.
                (B) An identification and assessment of the average amount
            spent by the Department of Defense on individual mentor-protege
            agreements and the correlation between levels of funding and the
            business development of the protege firms.
                (C) An evaluation of the effectiveness of the incentives
            provided to mentor firms to participate in the program.
                (D) An assessment of the success of the Mentor-Protege
            Program in enhancing the business competitiveness and financial
            independence of protege firms.

        (3) The <<NOTE: Reports.>>  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 results of the
    study not later than March 31, 1998.

    SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING
                PLANS.

        (a) Content of Subcontracting Plans.--Subsection (b)(2) of section
    834 of the National Defense Authorization Act for Fiscal

    [[Page 111 STAT. 1841]]

    Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 note) is
    amended--
                (1) by striking out ``plan--'' and inserting in lieu thereof
            ``plan of a contractor--'';
                (2) by striking out subparagraph (A);
                (3) by redesignating subparagraph (B) as subparagraph (A)
            and by striking out the period at the end of such subparagraph
            and inserting in lieu thereof ``; and''; and
                (4) by adding at the end the following:
                ``(B) shall cover each Department of Defense contract that
            is entered into by the contractor and each subcontract that is
            entered into by the contractor as the subcontractor under a
            Department of Defense contract.''.

        (b) Extension of Program.--Subsection (e) of such section is amended
    by striking out ``September 30, 1998'' in the second sentence and
    inserting in lieu thereof ``September 30, 2000.''.

                      Subtitle C--Administrative Provisions

    SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT
                LITIGATION.

        (a) In General.--Chapter 141 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 2410m. Retention of amounts collected from contractor during the
                            pendency of contract dispute

        ``(a) Retention of Funds.--Notwithstanding sections 1552(a) and
    3302(b) of title 31, any amount, including interest, collected from a
    contractor as a result of a claim made by a military department or
    Defense Agency under the Contract Disputes Act of 1978 (41 U.S.C. 601 et
    seq.), shall remain available in accordance with this section to pay--
                ``(1) any settlement of the claim by the parties;
                ``(2) any judgment rendered in the contractor's favor on an
            appeal of the decision on that claim to the Armed Services Board
            of Contract Appeals under section 7 of such Act (41 U.S.C. 606);
            or
                ``(3) any judgment rendered in the contractor's favor in an
            action on that claim in a court of the United States.

        ``(b) Period of Availability.--(1) The period of availability of an
    amount under subsection (a), in connection with a claim--
                ``(A) expires 180 days after the expiration of the period
            for bringing an action on that claim in the United States Court
            of Federal Claims under section 10(a) of the Contract Disputes
            Act of 1978 (41 U.S.C. 609(a)) if, within that 180-day period--
                        ``(i) no appeal on the claim is commenced at the
                    Armed Services Board of Contract Appeals under section 7
                    of such Act; and
                        ``(ii) no action on the claim is commenced in a
                    court of the United States; or
                ``(B) if not expiring under subparagraph (A), expires--
                        ``(i) in the case of a settlement of the claim, 180
                    days after the date of the settlement; or
                        ``(ii) in the case of a judgment rendered on the
                    claim in an appeal to the Armed Services Board of
                    Contract

    [[Page 111 STAT. 1842]]

                    Appeals under section 7 of the Contract Disputes Act of
                    1978 or an action in a court of the United States, 180
                    days after the date on which the judgment becomes final
                    and not appealable.

        ``(2) While available under this section, an amount may be obligated
    or expended only for a purpose described in subsection (a).
        ``(3) Upon the expiration of the period of availability of an amount
    under paragraph (1), the amount shall be covered into the Treasury as
    miscellaneous receipts.
        ``(c) Reporting Requirement.--Each year, the Under Secretary of
    Defense (Comptroller) shall submit to Congress a report on the amounts,
    if any, that are available for obligation pursuant to this section. The
    report shall include, at a minimum, the following:
                ``(1) The total amount available for obligation.
                ``(2) The total amount collected from contractors during the
            year preceding the year in which the report is submitted.
                ``(3) The total amount disbursed in such preceding year and
            a description of the purpose for each disbursement.
                ``(4) The total amount returned to the Treasury in such
            preceding year.''.

        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 141 of title 10, United States Code, is amended by adding at the
    end the following new item:

    ``2410m. Retention of amounts collected from contractor during the
               pendency of contract dispute.''.

    SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

        Section 2371 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(i) Protection of Certain Information From Disclosure.--(1)
    Disclosure of information described in paragraph (2) is not required,
    and may not be compelled, under section 552 of title 5 for five years
    after the date on which the information is received by the Department of
    Defense.
        ``(2)(A) Paragraph (1) applies to information described in
    subparagraph (B) that is in the records of the Department of Defense if
    the information was submitted to the Department in a competitive or
    noncompetitive process having the potential for resulting in an award,
    to the party submitting the information, of a cooperative agreement that
    includes a clause described in subsection (d) or another transaction
    authorized by subsection (a).
        ``(B) The information referred to in subparagraph (A) is the
    following:
                ``(i) A proposal, proposal abstract, and supporting
            documents.
                ``(ii) A business plan submitted on a confidential basis.
                ``(iii) Technical information submitted on a confidential
            basis.''.

    SEC. 833. UNIT COST REPORTS.

        (a) Immediate Report Required Only for Previously Unreported
    Increased Costs.--Subsection (c) of section 2433 of title 10, United
    States Code, is amended by striking out ``during the current fiscal year
    (other than the last quarterly unit cost report

    [[Page 111 STAT. 1843]]

    under subsection (b) for the preceding fiscal year)'' in the matter
    following paragraph (3).
        (b) Immediate Report Not Required for Cost Variances or Schedule
    Variances of Major Contracts.--Subsection (c) of such section is further
    amended--
                (1) by inserting ``or'' at the end of paragraph (1);
                (2) by striking out ``or'' at the end of paragraph (2); and
                (3) by striking out paragraph (3).

        (c) Congressional Notification of Increased Cost Not Conditioned on
    Discovery Since Beginning of Fiscal Year.--Subsection (d)(3) of such
    section is amended by striking out ``(for the first time since the
    beginning of the current fiscal year)'' in the first sentence.

    SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC
                AND SMALL BUSINESSES.

        (a) Requirement for Plan.--The Secretary of Defense shall develop a
    plan for improving the responsiveness of the Department of Defense to
    persons from the general public and small businesses seeking information
    on how to pursue contracting and technology development opportunities
    with the department. The plan shall include an assessment and
    recommendation on the designation of a central point of contact in the
    department to provide such information.
        (b) Submission.--Not later than March 31, 1998, the Secretary shall
    submit the plan developed under subsection (a) to the Committee on Armed
    Services of the Senate and the Committee on National Security of the
    House of Representatives.

    SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD
                MEETING SUBCONTRACTING GOALS.

        Section 2410d(c) of title 10, United States Code, is amended,
    effective as of September 30, 1997, by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1999''.

                            Subtitle D--Other Matters

    SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

        (a) Repeal of Reporting Requirement for Nonmajor Acquisition
    Programs.--Section 2220(b) of title 10, United States Code, is amended
    by striking out ``and nonmajor'' in the first sentence.
        (b) Repeal of Additional Approval Requirement Under Competition
    Exception for International Agreements.--Section 2304(f)(2)(E) of title
    10, United States Code, is amended by striking out ``and such document
    is approved by the competition advocate for the procuring activity''.
        (c) Content of Limited Selected Acquisition Reports.--Section
    2432(h)(2) of title 10, United States Code, is amended--
                (1) by striking out subparagraph (D); and
                (2) by redesignating subparagraphs (E) and (F) as
            subparagraphs (D) and (E), respectively.

        (d) Repeal of Report Relating to Procurement Regulations.--Section
    25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is
    amended by striking out subsection (g).

    [[Page 111 STAT. 1844]]

    SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY
                COMMERCIAL ENTITIES.

        (a) Extension of Authority.--Subsection (g) of section 2681 of title
    10, United States Code, is amended by striking out ``1998'' and
    inserting in lieu thereof ``2002''.
        (b) Revised Reporting Requirement.--Subsection (h) of such section
    is amended to read as follows:
        ``(h) Report.--Not later than March 1, 1998, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report identifying existing and proposed procedures to ensure that the
    use of Major Range and Test Facility Installations by commercial
    entities does not compete with private sector test and evaluation
    services.''.

    SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT ELIGIBLE
                FOR DEFENSE CONTRACTS.

        Section 2327 of title 10, United States Code, is amended--
                (1) by redesignating subsections (d) and (e) as subsections
            (f) and (g), respectively; and
                (2) by inserting after subsection (c) the following new
            subsections:

        ``(d) List of Firms Subject to Prohibition.--(1) The Secretary of
    Defense shall develop and maintain a list of all firms and subsidiaries
    of firms that the Secretary has identified as being subject to the
    prohibition in subsection (b).
        ``(2)(A) A person may request the Secretary to include on the list
    maintained under paragraph (1) any firm or subsidiary of a firm that the
    person believes to be owned or controlled by a foreign government
    described in subsection (b)(2). Upon receipt of such a request, the
    Secretary shall determine whether the conditions in paragraphs (1) and
    (2) of subsection (b) exist in the case of that firm or subsidiary. If
    the Secretary determines that such conditions do exist, the Secretary
    shall include the firm or subsidiary on the list.
        ``(B) A firm or subsidiary of a firm included on the list may
    request the Secretary to remove such firm or subsidiary from the list on
    the basis that it has been erroneously included on the list or its
    ownership circumstances have significantly changed. Upon receipt of such
    a request, the Secretary shall determine whether the conditions in
    paragraphs (1) and (2) of subsection (b) exist in the case of that firm
    or subsidiary. If the Secretary determines that such conditions do not
    exist, the Secretary shall remove the firm or subsidiary from the list.
        ``(C) The <<NOTE: Regulations.>>  Secretary shall establish
    procedures to carry out this paragraph.

        ``(3) The head of an agency shall prohibit each firm or subsidiary
    of a firm awarded a contract by the agency from entering into a
    subcontract under that contract in an amount in excess of $25,000 with a
    firm or subsidiary included on the list maintained under paragraph (1)
    unless there is a compelling reason to do so. In the case of any
    subcontract requiring consent by the head of an agency, the head of the
    agency shall not consent to the award of the subcontract to a firm or
    subsidiary included on such list unless there is a compelling reason for
    such approval.
        ``(e) Distribution of List.--The Administrator of General Services
    shall ensure that the list developed and maintained under

    [[Page 111 STAT. 1845]]

    subsection (d) is made available to Federal agencies and the public in
    the same manner and to the same extent as the list of suspended and
    debarred contractors compiled pursuant to subpart 9.4 of the Federal
    Acquisition Regulation.''.

    SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE
                STOCK OWNERSHIP PLANS.

        It is the sense of Congress that the Secretary of Defense should not
    disallow, under Department of Defense contracts, the following costs:
                (1) Interest costs associated with deferred compensation
            employee stock ownership plans that were incurred before January
            1, 1994.
                (2) Costs related to employee stock ownership plan (ESOP)
            debt, control premiums, or marketability discounts associated
            with the valuation of ESOP stock of closely held companies that
            were incurred before January 1, 1995.

    SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN
                DEMONSTRATION PROJECT RELATING TO ACQUISITION WORKFORCE.

        (a) Covered Personnel.--(1) Subsection (a) of section 4308 of the
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
    106; 10 U.S.C. 1701 note) is amended by adding before the period at the
    end the following: ``and supporting personnel assigned to work directly
    with the acquisition workforce''.
        (2) Subsection (b)(3)(A) of such section is amended by inserting
    before the semicolon the following: ``or involves a team of personnel
    more than half of which consists of members of the acquisition workforce
    and the remainder of which consists of supporting personnel assigned to
    work directly with the acquisition workforce''.
        (b) Commencement of Project.--Subsection (b)(3)(B) of such section
    is amended by striking out ``this Act'' and inserting in lieu thereof
    ``the National Defense Authorization Act for Fiscal Year 1998''.
        (c) Limitation on Number of Participants.--Such section is further
    amended by adding at the end the following:
        ``(d) Limitation on Number of Participants.--The total number of
    persons who may participate in the demonstration project under this
    section may not exceed 95,000.''.

    SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN
                ACT.

        Section 827 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-3) is
    amended by striking out ``120 days'' and inserting in lieu thereof ``90
    days''.

    SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR
                WEAPON SYSTEMS.

        (a) Repeal.--Section 2403 of title 10, United States Code, is
    repealed.
        (b) Clerical and Conforming Amendments.--(1) The table of sections
    at the beginning of chapter 141 of such title is amended by striking out
    the item relating to section 2403.
        (2) Section 803 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 U.S.C. 2430 note) is
    amended--

    [[Page 111 STAT. 1846]]

                (A) in subsection (a), by striking out ``2403,'';
                (B) by striking out subsection (c); and
                (C) by redesignating subsection (d) as subsection (c).

    SEC. 848. REQUIREMENTS <<NOTE: 10 USC 2304 note.>>  RELATING TO MICRO-
                PURCHASES.

        (a) Requirement.--(1) Not later than October 1, 1998, at least 60
    percent of all eligible purchases made by the Department of Defense for
    an amount less than the micro-purchase threshold shall be made through
    streamlined micro-purchase procedures.
        (2) Not later than October 1, 2000, at least 90 percent of all
    eligible purchases made by the Department of Defense for an amount less
    than the micro-purchase threshold shall be made through streamlined
    micro-purchase procedures.
        (b) Eligible Purchases.--The Secretary of Defense shall establish
    which purchases are eligible for purposes of subsection (a). In
    establishing which purchases are eligible, the Secretary may exclude
    those categories of purchases determined not to be appropriate or
    practicable for streamlined micro-purchase procedures.
        (c) Plan.--Not later than March 1, 1998, the Secretary of Defense
    shall provide to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a plan to
    implement this section.
        (d) Report.--Not later than March 1 in each of the years 1999, 2000,
    and 2001, the Secretary of Defense shall submit to the congressional
    defense committees a report on the implementation of this section. Each
    report shall include--
                (A) the total dollar amount of all Department of Defense
            purchases for an amount less than the micro-purchase threshold
            in the fiscal year preceding the year in which the report is
            submitted;
                (B) the total dollar amount of such purchases that were
            considered to be eligible purchases;
                (C) the total amount of such eligible purchases that were
            made through a streamlined micro-purchase method; and
                (D) a description of the categories of purchases excluded
            from the definition of eligible purchases established under
            subsection (b).

        (e) 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 ``streamlined micro-purchase procedures'' means
            procedures providing for the use of the Government-wide
            commercial purchase card or any other method for carrying out
            micro-purchases that the Secretary of Defense prescribes in the
            regulations implementing this subsection.

    SEC. 849. PROMOTION <<NOTE: 10 USC 1731 note.>>  RATE FOR OFFICERS IN AN
                ACQUISITION CORPS.

        (a) Review of Acquisition Corps Promotion Selections.--Upon the
    approval of the President or his designee of the report of a selection
    board convened under section 611(a) of title 10, United States Code,
    which considered members of an Acquisition Corps of a military
    department for promotion to a grade above O-4, the Secretary of the
    military department shall submit a copy of the report to the Under
    Secretary of Defense for Acquisition and Technology for review.

    [[Page 111 STAT. 1847]]

        (b) Reporting Requirement.--Not later than January 31 of each year,
    the Under Secretary of Defense for Acquisition and Technology shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    containing the Under Secretary's assessment of the extent to which each
    military department is complying with the requirement set forth in
    section 1731(b) of title 10, United States Code.
        (c) Termination of Requirements.--This section shall cease to be
    effective on October 1, 2000.

    SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

        (a) Policy.--Section 30 of the Office of Federal Procurement Policy
    Act (41 U.S.C. 426) is amended to read as follows:

    ``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

        ``(a) In General.--The head of each executive agency, after
    consulting with the Administrator, shall establish, maintain, and use,
    to the maximum extent that is practicable and cost-effective, procedures
    and processes that employ electronic commerce in the conduct and
    administration of its procurement system.
        ``(b) Applicable Standards.--In conducting electronic commerce, the
    head of an agency shall apply nationally and internationally recognized
    standards that broaden interoperability and ease the electronic
    interchange of information.
        ``(c) Agency Procedures.--The head of each executive agency shall
    ensure that systems, technologies, procedures, and processes established
    pursuant to this section--
                ``(1) are implemented with uniformity throughout the agency,
            to the extent practicable;
                ``(2) are implemented only after granting due consideration
            to the use or partial use, as appropriate, of existing
            electronic commerce and electronic data interchange systems and
            infrastructures such the Federal acquisition computer network
            architecture known as FACNET;
                ``(3) facilitate access to Federal Government procurement
            opportunities, including opportunities for small business
            concerns, socially and economically disadvantaged small business
            concerns, and business concerns owned predominantly by women;
            and
                ``(4) ensure that any notice of agency requirements or
            agency solicitation for contract opportunities is provided in a
            form that allows convenient and universal user access through a
            single, Government-wide point of entry.

        ``(d) Implementation.--The Administrator shall, in carrying out the
    requirements of this section--
                ``(1) issue policies to promote, to the maximum extent
            practicable, uniform implementation of this section by executive
            agencies, with due regard for differences in program
            requirements among agencies that may require departures from
            uniform procedures and processes in appropriate cases, when
            warranted because of the agency mission;
                ``(2) ensure that the head of each executive agency complies
            with the requirements of subsection (c) with respect to the
            agency systems, technologies, procedures, and processes
            established pursuant to this section; and

    [[Page 111 STAT. 1848]]

                ``(3) consult with the heads of appropriate Federal agencies
            with applicable technical and functional expertise, including
            the Office of Information and Regulatory Affairs, the National
            Institute of Standards and Technology, the General Services
            Administration, and the Department of Defense.

        ``(e) Report.--Not later than March 1, 1998, and every year
    afterward through 2003, the Administrator shall submit to Congress a
    report setting forth in detail the progress made in implementing the
    requirements of this section. The report shall include the
    following:
                ``(1) A strategic plan for the implementation of a
            Government-wide electronic commerce capability.
                ``(2) An agency-by-agency summary of implementation of the
            requirements of subsection (c), including timetables, as
            appropriate, addressing when individual agencies will come into
            full compliance.
                ``(3) A specific assessment of compliance with the
            requirement in subsection (c) to provide universal public access
            through a single, Government-wide point of entry.
                ``(4) Beginning with the report submitted on March 1, 1999,
            an agency-by-agency summary of the volume and dollar value of
            transactions that were conducted using electronic commerce
            methods during the previous calendar year.
                ``(5) A discussion of possible incremental changes to the
            electronic commerce capability referred to in subsection (c)(4)
            to increase the level of government contract information
            available to the private sector, including an assessment of the
            advisability of including contract award information in the
            electronic commerce functional standard.

        ``(f) Electronic Commerce Defined.--For the purposes of this
    section, the term `electronic commerce' means electronic techniques for
    accomplishing business transactions, including electronic mail or
    messaging, World Wide Web technology, electronic bulletin boards,
    purchase cards, electronic funds transfers, and electronic data
    interchange.''.
        (b) Repeal of Requirements for Implementation of FACNET
    Capability.--Section 30A of the Office of Federal Procurement Policy Act
    (41 U.S.C. 426a) is repealed.
        (c) Repeal of Requirement for GAO Report.--Section 9004 of the
    Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 426a note) is
    repealed.
        (d) Repeal of Condition for Use of Simplified Acquisition
    Procedures.--Section 31 of the Office of Federal Procurement
    Policy Act (41 U.S.C. 427) is amended--
                (1) by striking out subsection (e); and
                (2) by redesignating subsections (f) and (g) as subsections
            (e) and (f), respectively.

        (e) Amendments to Procurement Notice Requirements.--(1) Section
    8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1)) is amended--
                (A) by striking out subparagraphs (A) and (B);
                (B) by redesignating subparagraphs (C), (D), (E), (F), (G),
            and (H) as subparagraphs (B), (C), (D), (E), (F), and (G),
            respectively; and
                (C) by inserting before subparagraph (B), as so
            redesignated, the following new subparagraph (A):

    [[Page 111 STAT. 1849]]

                ``(A) the proposed procurement is for an amount not greater
            than the simplified acquisition threshold and is to be conducted
            by--
                        ``(i) using widespread electronic public notice of
                    the solicitation in a form that allows convenient and
                    universal user access through a single, Government-wide
                    point of entry; and
                        ``(ii) permitting the public to respond to the
                    solicitation electronically.''.

        (2) Section 18(c)(1) of the Office of Federal Procurement Policy Act
    (41 U.S.C. 416(c)(1)) is amended--
                (A) by striking out subparagraphs (A) and (B);
                (B) by redesignating subparagraphs (C), (D), (E), (F), (G),
            and (H) as subparagraphs (B), (C), (D), (E), (F), and (G),
            respectively; and
                (C) by inserting before subparagraph (B), as so
            redesignated, the following new subparagraph (A):
                ``(A) the proposed procurement is for an amount not greater
            than the simplified acquisition threshold and is to be conducted
            by--
                        ``(i) using widespread electronic public notice of
                    the solicitation in a form that allows convenient and
                    universal user access through a single, Government-wide
                    point of entry; and
                        ``(ii) permitting the public to respond to the
                    solicitation electronically.''.

        (3) The amendments <<NOTE: 15 USC 637 note.>>  made by paragraphs
    (1) and (2) shall be implemented in a manner consistent with any
    applicable international agreements.

        (f) Conforming and Technical Amendments.--(1) Section 5061 of the
    Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 413 note) is
    amended--
                (A) in subsection (c)(4)--
                        (i) by striking out ``the Federal acquisition
                    computer network (`FACNET')'' and inserting in lieu
                    thereof ``the electronic commerce''; and
                        (ii) by striking out ``(as added by section 9001)'';
                    and
                (B) in subsection (e)(9)(A), by striking out ``, or by
            dissemination through FACNET,''.

        (2) Section 5401 of the Clinger-Cohen Act of 1996 (divisions D and E
    of Public Law 104-106; 40 U.S.C. 1501) is amended--
                (A) in subsection (a)--
                        (i) by striking out ``through the Federal
                    Acquisition Computer Network (in this section referred
                    to as `FACNET')''; and
                        (ii) by striking out the last sentence;
                (B) in subsection (b)--
                        (i) by striking out ``Additional FACNET
                    Functions.--'' and all that follows through ``(41 U.S.C.
                    426(b)), the FACNET architecture'' and inserting in lieu
                    thereof ``Functions.--(1) The system for providing on-
                    line computer access''; and
                        (ii) in paragraph (2), by striking out ``The FACNET
                    architecture'' and inserting in lieu thereof ``The
                    system for providing on-line computer access'';

    [[Page 111 STAT. 1850]]

                (C) in subsection (c)(1), by striking out ``the FACNET
            architecture'' and inserting in lieu thereof ``the system for
            providing on-line computer access''; and
                (D) by striking out subsection (d).

        (3)(A) Section 2302c of title 10, United States Code, is amended to
    read as follows:

    ``Sec. 2302c. Implementation of electronic commerce capability

        ``(a) Implementation of Electronic Commerce Capability.--(1) The
    head of each agency named in paragraphs (1), (5), and (6) shall
    implement the electronic commerce capability required by section 30 of
    the Office of Federal Procurement Policy Act (41 U.S.C. 426).
        ``(2) The Secretary of Defense shall act through the Under Secretary
    of Defense for Acquisition and Technology to implement the capability
    within the Department of Defense.
        ``(3) In implementing the electronic commerce capability pursuant to
    paragraph (1), the head of an agency referred to in paragraph (1) shall
    consult with the Administrator for Federal Procurement Policy.
        ``(b) Designation of Agency Official.--The head of each agency named
    in paragraph (5) or (6) of section 2303 of this title shall designate a
    program manager to implement the electronic commerce capability for that
    agency. The program manager shall report directly to an official at a
    level not lower than the senior procurement executive designated for the
    agency under section 16(3) of the Office of Federal Procurement Policy
    Act (41 U.S.C. 414(3)).''.
        (B) Section 2304(g)(4) of such title is amended by striking out
    ``31(g)'' and inserting in lieu thereof ``31(f)''.
        (4)(A) Section 302C of the Federal Property and Administrative
    Services Act of 1949 (41 U.S.C. 252c) is amended to read as follows:

    ``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.

        ``(a) Implementation of Electronic Commerce Capability.--(1) The
    head of each executive agency shall implement the electronic commerce
    capability required by section 30 of the Office of Federal Procurement
    Policy Act (41 U.S.C. 426).
        ``(2) In implementing the electronic commerce capability pursuant to
    paragraph (1), the head of an executive agency shall consult with the
    Administrator for Federal Procurement Policy.
        ``(b) Designation of Agency Official.--The head of each executive
    agency shall designate a program manager to implement the electronic
    commerce capability for that agency. The program manager shall report
    directly to an official at a level not lower than the senior procurement
    executive designated for the executive agency under section 16(3) of the
    Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).''.
        (B) Section 303(g)(5) of the Federal Property and Administrative
    Services Act (41 U.S.C. 253(g)(5)) is amended by striking out ``31(g)''
    and inserting in lieu thereof ``31(f)''.
        (g) Effective Date.--(1) Except <<NOTE: 10 USC 2302c note.>>  as
    provided in paragraph (2), the amendments made by this section shall
    take effect 180 days after the date of the enactment of this Act.

        (2) The repeal made by subsection (c) of this section shall take
    effect on the date of the enactment of this Act.

    [[Page 111 STAT. 1851]]

    SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF
                CIVILIAN ACQUISITION PROGRAMS WITH POLICY ESTABLISHED FOR
                DEFENSE ACQUISITION PROGRAMS.

        (a) Performance Goals.--Section 313(a) of the Federal Property and
    Administrative Services Act of 1949 (41 U.S.C. 263(a)) is amended to
    read as follows:
        ``(a) Congressional Policy.--It is the policy of Congress that the
    head of each executive agency should achieve, on average, 90 percent of
    the cost, performance, and schedule goals established for major
    acquisition programs of the agency.''.
        (b) Conforming Amendment to Reporting Requirement.--Section 6(k) of
    the Office of Federal Procurement Policy Act (41 U.S.C. 405(k)) is
    amended by inserting ``regarding major acquisitions that is'' in the
    first sentence after ``policy''.

    SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED
                CONTRACTING PILOT PROGRAM.

        (a) Source Selection.--Paragraph (9) of section 5312(c) of the
    Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 40
    U.S.C. 1492(c)) is amended--
                (1) in subparagraph (A), by striking out ``, and ranking of
            alternative sources,'' and inserting in lieu thereof ``or
            sources,'';
                (2) in subparagraph (B)--
                        (A) in the matter preceding clause (i), by inserting
                    ``(or a longer period, if approved by the
                    Administrator)'' after ``30 to 60 days'';
                        (B) in clause (i), by inserting ``or sources'' after
                    ``source''; and
                        (C) in clause (ii), by striking out ``that source''
                    and inserting in lieu thereof ``the source whose offer
                    is determined to be most advantageous to the
                    Government''; and
                (3) in subparagraph (C), by striking out ``with alternative
            sources (in the order ranked)''.

        (b) Time Management Discipline.--Paragraph (12) of such section is
    amended by inserting before the period at the end the following: ``,
    except that the Administrator may approve the application of a longer
    standard period''.

    SEC. 853. GUIDANCE <<NOTE: 10 USC 1723 note.>>  AND STANDARDS FOR
                DEFENSE ACQUISITION WORKFORCE TRAINING REQUIREMENTS.

        The Secretary of Defense shall develop appropriate guidance and
    standards to ensure that the Department of Defense will continue, where
    appropriate and cost-effective, to enter into contracts for the training
    requirements of sections 1723, 1724, and 1735 of title 10, United States
    Code, while maintaining appropriate control over the content and quality
    of such training.

    SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN
                SOURCES FOR RESISTORS AND CAPACITORS.

        (a) Study.--The Secretary of Defense shall conduct a study of the
    capacitor and resistor industries in the United States and the degree of
    United States dependence on foreign sources for resistors and
    capacitors.

    [[Page 111 STAT. 1852]]

        (b) Report.--Not later than May 1, 1998, the Secretary shall submit
    to Congress a report on the results of the study under subsection (a).
    The report shall include the following:
                (1) An assessment of the industrial base for the production
            of resistors and capacitors within the United States and a
            projection of any changes in that base that are likely to occur
            after the implementation of relevant tariff reductions required
            by the Information Technology Agreement entered into at the
            World Trade Organization Ministerial in Singapore in December
            1996.
                (2) An assessment of the level of dependence on foreign
            sources for procurement of resistors and capacitors and a
            projection of the level of dependence on foreign sources that is
            likely to occur after the implementation of relevant tariff
            reductions required by the Information Technology Agreement.
                (3) The implications for the national security of the United
            States of the projections reported under paragraphs (1) and (2).
                (4) Recommendations for appropriate changes, if any, in
            defense procurement policies or other Federal policies based on
            such implications.

    SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT
                STUDY.

        (a) Study of Existing Procurement Procedures.--The Secretary of
    Defense and the Director of Federal Prison Industries shall jointly
    conduct a study of the procurement procedures, regulations, and statutes
    that govern procurement transactions between the Department of Defense
    and Federal Prison Industries.
        (b) Report.--(1) The Secretary and the Director shall, not later
    than 180 days after the date of the enactment of this Act, submit to the
    committees listed in paragraph (2) a report containing the findings of
    the study and recommendations on the means to improve the efficiency and
    reduce the cost of transactions described in subsection (a).
        (2) The committees referred to in paragraph (1) are the
    following:
                (A) The Committee on Armed Services and the Committee on the
            Judiciary of the Senate.
                (B) The Committee on National Security and the Committee on
            the Judiciary of the House of Representatives.

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

    Subtitle A--Department of Defense Positions and Organizations and Other
                                 General Matters

    Sec. 901. Assistants <<NOTE: 10 USC 155 note.>>  to the Chairman of the
               Joint Chiefs of Staff for National Guard matters and for
               Reserve matters.

    Sec. 902. Use of CINC Initiative Fund for force protection.
    Sec. 903. Revision to required frequency for provision of policy
               guidance for contingency plans.
    Sec. 904. Annual justification for Department of Defense advisory
               committees.
    Sec. 905. Airborne reconnaissance management.
    Sec. 906. Termination of the Armed Services Patent Advisory Board.
    Sec. 907. Coordination of Department of Defense criminal investigations
               and
               audits.

    [[Page 111 STAT. 1853]]

             Subtitle B--Department of Defense Personnel Management

    Sec. 911. Reduction in personnel assigned to management headquarters and
               headquarters support activities.
    Sec. 912. Defense acquisition workforce.

              Subtitle C--Department of Defense Schools and Centers

    Sec. 921. Professional military education schools.
    Sec. 922. Center for Hemispheric Defense Studies.
    Sec. 923. Correction to reference to George C. Marshall European Center
               for
               Security Studies.

         Subtitle D--Department of Defense Intelligence-Related Matters

    Sec. 931. Transfer of certain military department programs from TIARA
               budget
               aggregation.
    Sec. 932. Report on coordination of access of commanders and deployed
               units to
               intelligence collected and analyzed by the intelligence
               community.
    Sec. 933. Protection of imagery, imagery intelligence, and geospatial
               information and data.
    Sec. 934. POW/MIA intelligence analysis.

    Subtitle A--Department of Defense Positions and Organizations and Other
                                 General Matters

    SEC. 901. <<NOTE: 10 USC 155 note.>>  ASSISTANTS TO THE CHAIRMAN OF THE
                JOINT CHIEFS OF STAFF FOR NATIONAL GUARD MATTERS AND FOR
                RESERVE MATTERS.

        (a) Establishment of Positions.--The Secretary of Defense shall
    establish the following positions within the Joint Staff:
                (1) Assistant to the Chairman of the Joint Chiefs of Staff
            for National Guard Matters.
                (2) Assistant to the Chairman of the Joint Chiefs of Staff
            for Reserve Matters.

        (b) Selection.--(1) The Assistant to the Chairman of the Joint
    Chiefs of Staff for National Guard Matters shall be selected by the
    Chairman from officers of the Army National Guard of the United States
    or the Air Guard of the United States who--
                (A) are recommended for such selection by their respective
            Governors or, in the case of the District of Columbia, the
            commanding general of the District of Columbia National Guard;
                (B) have had at least 10 years of federally recognized
            commissioned service in the National Guard; and
                (C) are in a grade above the grade of colonel.

        (2) The Assistant to the Chairman of the Joint Chiefs of Staff for
    Reserve Matters shall be selected by the Chairman from officers of the
    Army Reserve, the Naval Reserve, the Marine Corps Reserve, or the Air
    Force Reserve who--
                        (A) are recommended for such selection by the
                    Secretary of the military department concerned;
                        (B) have had at least 10 years of commissioned
                    service in their reserve component; and
                        (C) are in a grade above the grade of colonel or, in
                    the case of the Naval Reserve, captain.

        (c) Term of Office.--Each Assistant to the Chairman under subsection
    (a) serves at the pleasure of the Chairman for a term of two years and
    may be continued in that assignment in the same manner for one
    additional term. However, in time of war there is no limit on the number
    of terms.

    [[Page 111 STAT. 1854]]

        (d) Grade.--Each Assistant to the Chairman, while so serving, holds
    the grade of major general or, in the case of the Naval Reserve, rear
    admiral. Each such officer shall be considered to be serving in a
    position external to that officer's Armed Force for purposes of section
    721 of title 10, United States Code, as added by section 501(a).
        (e) Duties.--The Assistant to the Chairman for National Guard
    Matters is an adviser to the Chairman on matters relating to the
    National Guard and performs the duties prescribed for that position by
    the Chairman. The Assistant to the Chairman for Reserve Matters is an
    adviser to the Chairman on matters relating to the reserves and performs
    the duties prescribed for that position by the Chairman.
        (f) Other Reserve Component Representation on Joint Staff.--(1) The
    Secretary of Defense, in consultation with the Chairman of the Joint
    Chiefs, shall develop appropriate policy guidance to ensure that, to the
    maximum extent practicable, the level of reserve component officer
    representation within the Joint Staff is commensurate with the
    significant role of the reserve components within the Total Force.
        (2) Not later than <<NOTE: Reports.>>  March 1, 1998, the Secretary
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    describing the steps taken and being taken to implement this subsection.

        (g) Effective Date.--The positions specified in subsection (a) shall
    be established by the Secretary of Defense not later than 60 days after
    the date of the enactment of this Act.

    SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

        Section 166a(b) of title 10, United States Code, is amended by
    adding at the end the following:
                ``(9) Force protection.''.

    SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY
                GUIDANCE FOR CONTINGENCY PLANS.

        Section 113(g)(2) of title 10, United States Code, is amended--
                (1) in the first sentence, by striking out ``annually''; and
                (2) in the second sentence, by inserting ``be provided every
            two years or more frequently as needed and shall'' after ``Such
            guidance shall''.

    SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY
                COMMITTEES.

        (a) Annual Justification Required.--Chapter 7 of title 10, United
    States Code, is amended by adding after section 182, as added by section
    382(a)(1), the following new section:

    ``Sec. 183. Advisory committees: annual justification required

        ``(a) Annual Report.--The Secretary of Defense shall include in the
    annual report of the Secretary under section 113(c) of this title a
    report on advisory committees of the Department of Defense. In each such
    report, the Secretary shall--
                ``(1) identify each advisory committee that the Secretary
            proposes to support, or that the Secretary is required by law or
            direction from the President to support, during the next fiscal
            year; and

    [[Page 111 STAT. 1855]]

                ``(2) for each committee identified under paragraph (1), set
            forth--
                        ``(A) the justification or requirement for that
                    committee; and
                        ``(B) the projected cost to the Department of
                    Defense to support that committee during the next fiscal
                    year.

        ``(b) Advisory Committee Defined.--In this section, the term
    `advisory committee' means an entity that is subject to the provisions
    of the Federal Advisory Committee Act (5 U.S.C. App.).''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding after the item relating to section
    182, as added by section 382(a)(2), the following new item:

    ``183. Advisory committees: annual justification required.''.

    SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

        (a) Reorganization of Defense Airborne Reconnaissance Management.--
    Not later than September 30, 1998, the Secretary of Defense shall
    reorganize the management of defense airborne reconnaissance within the
    Department of Defense in accordance with the plan developed under
    subsection (b).
        (b) Plan and Report.--(1) The Secretary of Defense shall develop a
    plan to reorganize the following organizations by transferring functions
    as required under subsections (c) and (d):
                (A) The organization within the Department of Defense that
            is subordinate to the Under Secretary of Defense for Acquisition
            and Technology and known as the Defense Airborne Reconnaissance
            Office.
                (B) The organization within the Department of Defense that
            is subordinate to the Secretary of the Navy and known as the
            Unmanned Aerial Vehicle Joint Program Office.

        (2) The Secretary shall submit to the congressional defense
    committees a report containing--
                (A) the plan developed under paragraph (1); and
                (B) an explanation of how the plan addresses the findings
            and recommendations in the final report of the Task Force on
            Defense Reform (established by the Secretary of Defense on May
            14, 1997, and headed by the Deputy Secretary of Defense).

        (3) The plan under paragraph (1) shall be developed, and the report
    under paragraph (2) shall be submitted, not later than March 1, 1998.
        (c) Transfer of Certain Functions to Secretaries of Military
    Departments.--(1) Not later than September 30, 1998, the Secretary of
    Defense shall transfer to the Secretaries of the military departments
    those functions specified in paragraph (2) that were performed on the
    day before the date of the enactment of this Act by the Defense Airborne
    Reconnaissance Office and the Unmanned Aerial Vehicle Joint Program
    Office.
        (2) The functions referred to in paragraph (1) are the functions of
    the Defense Airborne Reconnaissance Office and the Unmanned Aerial
    Vehicle Joint Program Office relating to their responsibilities for
    acquisition of systems, budgeting, program management (for research,
    development, test, and evaluation, for procurement, for life-cycle
    support, and for operations), and related responsibilities for
    individual airborne reconnaissance programs.

    [[Page 111 STAT. 1856]]

        (d) Transfer of Certain Functions to Defense Airborne Reconnaissance
    Office.--(1) Not later than September 30, 1998, the Secretary of Defense
    shall transfer to the Defense Airborne Reconnaissance Office those
    functions specified in paragraph (2) that were performed on the day
    before the date of the enactment of this Act by the Unmanned Aerial
    Vehicle Joint Program Office.
        (2) The functions referred to in paragraph (1) are the functions of
    the Unmanned Aerial Vehicle Joint Program Office relating to its
    responsibilities for management and oversight of defense airborne
    reconnaissance architecture, requirements, and system interfaces (other
    than the responsibilities specified in subsection (c)(2)).

    SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

        (a) Termination of Board.--The organization within the Department of
    Defense known as the Armed Services Patent Advisory Board is terminated.
    No funds available for the Department of Defense may be used for the
    operation of that Board after the effective date specified in subsection
    (c).
        (b) Transfer of Functions.--All functions performed on the day
    before the date of the enactment of this Act by the Armed Services
    Patent Advisory Board (including performance of the responsibilities of
    the Department of Defense for security review of patent applications
    under chapter 17 of title 35, United States Code) shall be transferred
    to the Defense Technology Security Administration.
        (c) Effective Date.--Subsection (a) shall take effect at the end of
    the 120-day period beginning on the date of the enactment of this Act.

    SEC. 907. COORDINATION <<NOTE: 10 USC 113 note.>>  OF DEPARTMENT OF
                DEFENSE CRIMINAL INVESTIGATIONS AND AUDITS.

        (a) Military Department Criminal Investigative Organizations.--(1)
    The heads of the military department criminal investigative
    organizations shall take such action as may be practicable to conserve
    the limited resources available to the military department criminal
    investigative organizations by sharing personnel, expertise,
    infrastructure, training, equipment, software, and other resources.
        (2) The heads of the military department criminal investigative
    organizations shall meet on a regular basis to determine the manner in
    which and the extent to which the military department criminal
    investigative organizations will be able to share resources.
        (b) Defense Auditing Organizations.--(1) The heads of the defense
    auditing organizations shall take such action as may be practicable to
    conserve the limited resources available to the defense auditing
    organizations by sharing personnel, expertise, infrastructure, training,
    equipment, software, and other resources.
        (2) The heads of the defense auditing organizations shall meet on a
    regular basis to determine the manner in which and the extent to which
    the defense auditing organizations will be able to share resources.
        (c) Implementation Plan.--Not later than December 31, 1997, the
    Secretary of Defense shall submit to Congress a plan designed to
    maximize the resources available to the military department criminal
    investigative organizations and the defense auditing organizations, as
    required by this section.

    [[Page 111 STAT. 1857]]

        (d) Definitions.--For purposes of this section:
                (1) The term ``military department criminal investigative
            organizations'' means--
                        (A) the Army Criminal Investigation Command;
                        (B) the Naval Criminal Investigative Service; and
                        (C) the Air Force Office of Special Investigations.
                (2) The term ``defense auditing organizations'' means--
                        (A) the Office of the Inspector General of the
                    Department of Defense;
                        (B) the Defense Contract Audit Agency;
                        (C) the Army Audit Agency;
                        (D) the Naval Audit Service; and
                        (E) the Air Force Audit Agency.

             Subtitle B--Department of Defense Personnel Management

    SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND
                HEADQUARTERS SUPPORT ACTIVITIES.

        (a) In General.--(1) Chapter 3 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 130a. Management headquarters and headquarters support activities
                            personnel: limitation

        ``(a) Limitation.--Effective <<NOTE: Effective date.>>  October 1,
    2002, the number of management headquarters and headquarters support
    activities personnel in the Department of Defense may not exceed 75
    percent of the baseline number.

        ``(b) Phased Reduction.--The number of management headquarters and
    headquarters support activities personnel in the Department of Defense--
                ``(1) as of October 1, 1998, may not exceed 95 percent of
            the baseline number;
                ``(2) as of October 1, 1999, may not exceed 90 percent of
            the baseline number;
                ``(3) as of October 1, 2000, may not exceed 85 percent of
            the baseline number; and
                ``(4) as of October 1, 2001, may not exceed 80 percent of
            the baseline number.

        ``(c) Baseline Number.--In this section, the term `baseline number'
    means the number of management headquarters and headquarters support
    activities personnel in the Department of Defense as of October 1, 1997.
        ``(d) Limitation on Management Headquarters and Headquarters Support
    Personnel Assigned to the United States Transportation Command.--(1)
    Effective <<NOTE: Effective date.>>  October 1, 1998, the number of
    management headquarters activities and management headquarters support
    activities personnel assigned to, or employed in, the United States
    Transportation Command may not exceed the number equal to 95 percent of
    the number of such personnel as of October 1, 1997.

        ``(2) For purposes of paragraph (1), the United States
    Transportation Command shall be considered to include the following:
                ``(A) The United States Transportation Command Headquarters.

    [[Page 111 STAT. 1858]]

                ``(B) The Air Mobility Command of the Air Force.
                ``(C) The Military Sealift Command of the Navy.
                ``(D) The Military Traffic Management Command of the Army.
                ``(E) The Defense Courier Service.
                ``(F) Any other element of the Department of Defense
            assigned to the United States Transportation Command.

        ``(3) The Secretary of Defense may waive or suspend operation of
    paragraph (1) in the event of a war or national emergency.
        ``(e) Management Headquarters and Headquarters Support Activities
    Personnel Defined.--In this section:
                ``(1) The term `management headquarters and headquarters
            support activities personnel' means military and civilian
            personnel of the Department of Defense who are assigned to, or
            employed in, functions in management headquarters activities or
            in management headquarters support activities.
                ``(2) The terms `management headquarters activities' and
            `management headquarters support activities' have the meanings
            given those terms in Department of Defense Directive 5100.73,
            entitled `Department of Defense Management Headquarters and
            Headquarters Support Activities', as in effect on November 12,
            1996.

        ``(f) Limitation on Reassignment of Functions.--In carrying out
    reductions in the number of personnel assigned to, or employed in,
    management headquarters and headquarters support activities in order to
    comply with this section, the Secretary of Defense and the Secretaries
    of the military departments may not reassign functions in order to evade
    the requirements of this section.
        ``(g) Flexibility.--If the Secretary of Defense determines, and
    certifies to Congress, that the limitation in subsection (b) with
    respect to any fiscal year would adversely affect United States national
    security, the Secretary may waive the limitation under that subsection
    with respect to that fiscal year. If the Secretary of Defense
    determines, and certifies to Congress, that the limitation in subsection
    (a) during fiscal year 2001 would adversely affect United States
    national security, the Secretary may waive the limitation under that
    subsection with respect to that fiscal year. The authority under this
    subsection may be used only once, with respect to a single fiscal
    year.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``130a. Management headquarters and headquarters support activities
               personnel: limitation.''.

        (b) Implementation <<NOTE: 10 USC 130a note.>>  Report.--Not later
    than January 15, 1998, the Secretary of Defense shall submit to Congress
    a report--
                (1) containing a plan to achieve the personnel reductions
            required by section 130a of title 10, United States Code, as
            added by subsection (a); and
                (2) including the recommendations of the Secretary
            regarding--
                        (A) the revision, replacement, or augmentation of
                    Department of Defense Directive 5100.73, entitled
                    ``Department of Defense Management Headquarters and
                    Headquarters Support Activities'', as in effect on
                    November 12, 1996; and

    [[Page 111 STAT. 1859]]

                        (B) the revision of the definitions of the terms
                    ``management headquarters activities'' and ``management
                    headquarters support activities'' under that Directive
                    so that those terms apply uniformly throughout the
                    Department of Defense.

        (c)  Duties of Task Force on Defense Reform To Include Consideration
    Of Management Headquarters Activities.--(1) The Secretary of Defense
    shall require that the areas of study of the Task Force on Defense
    Reform (established by the Secretary of Defense on May 14, 1997, and
    headed by the Deputy Secretary of Defense) include an examination of the
    missions, functions, and responsibilities of the various management
    headquarters activities and management headquarters support activities
    of the Department of Defense. In carrying out that examination of those
    activities, the Task Force shall identify areas of duplication in those
    activities and recommend to the Secretary options to streamline, reduce,
    and eliminate redundancies.
        (2) The examination of the missions, functions, and responsibilities
    of the various management headquarters activities and management
    headquarters support activities of the Department of Defense under
    paragraph (1) shall include the following:
                (A) An assessment of benefits of consolidation or selected
            elimination of Department of Defense management headquarters
            activities and management headquarters support activities.
                (B) An assessment of the opportunities to streamline the
            management headquarters and management headquarters support
            infrastructure that were realized as a result of the enactment
            of the Federal Acquisition Streamlining Act of 1994 (Public Law
            103-355) and the Clinger-Cohen Act of 1996 (divisions D and E of
            Public Law 104-106) or as result of other management reform
            initiatives implemented administratively during the period from
            1993 through 1997.
                (C) An assessment of such other options for streamlining or
            restructuring the management headquarters and management
            headquarters support infrastructure as the Task Force considers
            appropriate and as can be carried out under existing provisions
            of law.

        (3) Not later than March <<NOTE: Reports.>>  1, 1998, the Secretary
    of Defense shall submit to Congress a report on the results of the
    examination by the Task Force under this subsection. The Secretary shall
    include in the report any report to the Secretary from the Task Force
    with respect to the matters described in paragraphs (1) and (2).

        (d) Codification of Prior Permanent Limitation on OSD Personnel.--
    (1) Chapter 4 of title 10, United States Code, is amended by adding at
    the end a new section 143 consisting of--
                (A) a heading as follows:

    ``Sec. 143. Office of the Secretary of Defense personnel: limitation'';

                and
                (B) a text consisting of the text of subsections (a) through
            (f) of section 903 of the National Defense Authorization Act for
            Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617).

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

    ``143. Office of the Secretary of Defense personnel: limitation.''.

    [[Page 111 STAT. 1860]]

        (3) Section 903 of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2617) is repealed.

    SEC. 912. DEFENSE <<NOTE: 10 USC 131 note.>>  ACQUISITION WORKFORCE.

        (a) Reduction of Defense Acquisition Workforce.--(1) The Secretary
    of Defense shall accomplish reductions in defense acquisition personnel
    positions during fiscal year 1998 so that the total number of such
    personnel as of October 1, 1998, is less than the total number of such
    personnel as of October 1, 1997, by at least the applicable number
    determined under paragraph (2).
        (2)(A) The applicable number for purposes of paragraph (1) is
    25,000. However, the Secretary of Defense may specify a lower number,
    which may not be less than 10,000, as the applicable number for purposes
    of paragraph (1) if the Secretary determines, and certifies to Congress
    not later than June 1, 1998, 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 would adversely affect military readiness.
        (B) The Secretary shall include with such a certification a detailed
    explanation of each of the matters certified.
        (C) The authority of the Secretary under subparagraph (A) may only
    be delegated to the Deputy Secretary of Defense.
        (3) For purposes of this subsection, the term ``defense acquisition
    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).
        (b) Report on Specific Acquisition Positions Previously
    Eliminated.--Not later than 30 days after the date of the enactment of
    this Act, the Secretary of Defense shall submit to Congress a report on
    reductions in the defense acquisition workforce made since fiscal year
    1989. The report shall show aggregate reductions by fiscal year and
    shall show for each fiscal year reductions identified by specific job
    title, classification, or position. The report shall also identify those
    reductions carried out pursuant to law (and how the Secretary
    implemented any statutory requirement for such reductions, including
    definition of the workforce subject to the reduction) and those
    reductions carried out as a result of base closures and realignments
    under the so-called BRAC process. The Secretary shall include in the
    report a definition of the term ``defense acquisition workforce'' that
    is to be applied uniformly throughout the Department of Defense.
        (c) Implementation Plan <<NOTE: Reports.>>  To Streamline and
    Improve Acquisition Organizations.--(1) Not later than April 1, 1998,
    the Secretary of Defense shall submit to Congress a report containing a
    plan to streamline the acquisition organizations, workforce, and
    infrastructure of the Department of Defense. The Secretary shall include
    with the report a detailed discussion of the recommendations of the
    Secretary based on the review under subsection (d) and the assessment of
    the Task Force on Defense Reform pursuant to subsection (e), together
    with a request for the enactment of any legislative changes necessary
    for implementation of the plan. The Secretary shall include in the
    report the results of the review under subsection (d) and the
    independent assessment of the Task Force on Defense Reform pursuant to
    subsection (e).

    [[Page 111 STAT. 1861]]

        (2) In carrying out this subsection and subsection (d), the
    Secretary of Defense shall formally consult with the Chairman of the
    Joint Chiefs of Staff, the Director of Program Analysis and Evaluation,
    the Under Secretary of Defense (Comptroller), and the Under Secretary
    for Acquisition and Technology.
        (d) Review of Acquisition Organizations and Functions.--The
    Secretary of Defense shall conduct a review of the organizations and
    functions of the Department of Defense acquisition activities and of the
    personnel required to carry out those functions. The review shall
    identify the following:
                (1) Opportunities for cross-service, cross-functional
            arrangements within the military services and defense agencies.
                (2) Specific areas of overlap, duplication, and redundancy
            among the various acquisition organizations.
                (3) Opportunities to further streamline acquisition
            processes.
                (4) Benefits of an enhanced Joint Requirements Oversight
            Council in the acquisition process.
                (5) Alternative consolidation options for acquisition
            organizations.
                (6) Alternative methods for performing industry oversight
            and quality assurance.
                (7) Alternative options to shorten the procurement cycle.
                (8) Alternative acquisition infrastructure reduction options
            within current authorities.
                (9) Alternative organizational arrangements that capitalize
            on core acquisition competencies among the military services and
            defense agencies.
                (10) Future acquisition personnel requirements of the
            Department.
                (11) Adequacy of the Program, Plans, and Budgeting System in
            fulfilling current and future acquisition needs of the
            Department.
                (12) Effect of technology and advanced management tools in
            the future acquisition system.
                (13) Applicability of more flexible alternative approaches
            to the current civil service system for the acquisition
            workforce.
                (14) Adequacy of Department of Defense Instruction numbered
            5000.58 dated January 14, 1992.

        (e)  Duties of Task Force on Defense Reform To Include Consideration
    Of Acquisition Organizations.--(1) The Secretary of Defense shall
    require that the areas of study of the Task Force on Defense Reform
    (established by the Secretary of Defense on May 14, 1997, and headed by
    the Deputy Secretary of Defense) include an examination of the missions,
    functions, and responsibilities of the various acquisition organizations
    of the Department of Defense, including the acquisition workforce of the
    Department. In carrying out that examination of those organizations and
    that workforce, the Task Force shall identify areas of duplication in
    defense acquisition organization and recommend to the Secretary options
    to streamline, reduce, and eliminate redundancies.
        (2) The examination of the missions, functions, and responsibilities
    of the various acquisition organizations of the Department of Defense
    under paragraph (1) shall include the following:
                (A) An assessment of benefits of consolidation or selected
            elimination of Department of Defense acquisition organizations.

    [[Page 111 STAT. 1862]]

                (B) An assessment of the opportunities to streamline the
            defense acquisition infrastructure that were realized as a
            result of the enactment of the Federal Acquisition Streamlining
            Act of 1994 (Public Law 103-355) and the Clinger-Cohen Act of
            1996 (divisions D and E of Public Law 104-106) or as result of
            other acquisition reform initiatives implemented
            administratively during the period from 1993 through 1997.
                (C) An assessment of such other options for streamlining or
            restructuring the defense acquisition infrastructure as the Task
            Force considers appropriate and as can be carried out under
            existing provisions of law.

        (3) Not later than <<NOTE: Reports.>>  March 1, 1998, the Task Force
    shall submit to the Secretary a report on the results of its review of
    the acquisition organizations of the Department of Defense, including
    any recommendations of the Task Force for improvements to those
    organizations.

        (f) Technical Reference Correction.--Section 1721(c) of title 10,
    United States Code, is amended by striking out ``November 25, 1988'' and
    inserting in lieu thereof ``November 12, 1996''.

              Subtitle C--Department of Defense Schools and Centers

    SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

        (a) Component Institutions of the National Defense University.--(1)
    Chapter 108 of title 10, United States Code, is amended by adding at the
    end the following new section:

    ``Sec. 2165. National Defense University: component institutions

        ``(a) In General.--There is a National Defense University in the
    Department of Defense.
        ``(b) Component Institutions.--The National Defense University
    consists of the following institutions:
                ``(1) The National War College.
                ``(2) The Industrial College of the Armed Forces.
                ``(3) The Armed Forces Staff College.
                ``(4) The Institute for National Strategic Studies.
                ``(5) The Information Resources Management College.''.

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

    ``2165. National Defense University: component institutions.''.

        (b) Marine Corps University as Professional Military Education
    School.--Subsection (d) of section 2162 of such title is amended to read
    as follows:
        ``(d) Professional Military Education Schools.--This section applies
    to each of the following professional military education schools:
                ``(1) The National Defense University.
                ``(2) The Army War College.
                ``(3) The College of Naval Warfare.
                ``(4) The Air War College.
                ``(5) The United States Army Command and General Staff
            College.
                ``(6) The College of Naval Command and Staff.
                ``(7) The Air Command and Staff College.

    [[Page 111 STAT. 1863]]

                ``(8) The Marine Corps University.''.

        (c) Repeal of Duplicative Definition.--Section 1595(d) of such title
    is amended--
                (1) by striking out ``(1)'' before ``In the case of''; and
                (2) by striking out paragraph (2).

    SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

        (a) Institution of the National Defense University.--Subsection (b)
    of section 2165 of title 10, United States Code, as added by section
    921(a)(1), is amended by adding at the end the following new paragraph:
                ``(6) The Center for Hemispheric Defense Studies.''.

        (b) Civilian Faculty Members.--Section 1595 of title 10, United
    States Code, is amended by striking out subsections (e) and (f) and
    inserting in lieu thereof the following:
        ``(e) Applicability to Director and Deputy Director at Certain
    Institutions.--In addition to the persons specified in subsection (a),
    this section also applies with respect to the Director and the Deputy
    Director of the following:
                ``(1) The George C. Marshall European Center for Security
            Studies.
                ``(2) The Asia-Pacific Center for Security Studies.
                ``(3) The Center for Hemispheric Defense Studies.''.

    SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER
                FOR SECURITY STUDIES.

        (a) Correction to Reference to Name of Center.--Subsection (a) of
    section 506 of the Intelligence Authorization Act, Fiscal Year 1990
    (Public Law 101-193; 8 U.S.C. 1430 note), is amended by striking out
    ``the United States Army Russian Institute'' and inserting in lieu
    thereof ``the George C. Marshall European Center for Security Studies''.
        (b) Section Heading.--The heading of such section is amended to read
    as follows:

    ``requirements for citizenship for staff of george c. marshall european
                         center for security studies''.

             Subtitle D--Department of Defense Intelligence Matters

    SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA
                BUDGET AGGREGATION.

        (a) Transfer.--Effective <<NOTE: Effective date.>>  March 1, 1998,
    the Secretary of Defense shall, for each program identified by the
    Secretary under subsection (c)(2), transfer the management and budgeting
    of funds for that program from the TIARA budget aggregation to a
    nonintelligence budget activity of the military department responsible
    for that program.

        (b) Assessment.--The Secretary of Defense shall conduct an
    assessment of the policy of the Department of Defense that is used for
    determining the programs of the Department that are included within the
    TIARA budget aggregation. In conducting the assessment, the Secretary--

    [[Page 111 STAT. 1864]]

                (1) shall consider whether the current policy is in need of
            revision to reflect changes in technology and battlefield use of
            TIARA systems;
                (2) shall specifically consider the appropriateness of the
            continued inclusion in the TIARA budget aggregation of each of
            the programs described in subsection (e); and
                (3) may consider the appropriateness of the continued
            inclusion in the TIARA budget aggregation of any other program
            (in addition to the programs described to in subsection (e))
            that as of the date of the enactment of this Act is managed and
            budgeted as part of the TIARA budget aggregation.

        (c) Report.--Not later than March 1, 1998, the Secretary of Defense
    shall submit to Congress a report on the assessment carried out under
    section (b). The Secretary shall include in the report--
                (1) a description of any proposed changes to Department of
            Defense policies for determining which programs are included in
            the TIARA budget aggregation; and
                (2) identification of each program (among the programs
            considered pursuant to paragraphs (2) and (3) of subsection (b))
            for which the management and budgeting of funds is to be
            transferred under subsection (a).

        (d) Identification of Programs.--(1) In specifying the programs to
    be included on the list under subsection (c)(2), the
    Secretary--
                (A) shall (except as otherwise provided pursuant to a waiver
            under paragraph (2)) include each program described in
            subsection (e); and
                (B) may include such additional programs considered in the
            assessment pursuant to subsection (b)(3) as the Secretary
            determines appropriate.

        (2) The Secretary, after considering the results of the assessment
    under subsection (c), may waive the applicability of paragraph (1)(A) to
    any program described in subsection (e). The Secretary shall include in
    the report under subsection (c) identification of each such program for
    which the Secretary has granted such a waiver and supporting rationale
    for each waiver.
        (e) Covered Programs.--The programs described in this subsection are
    the following (each of which, as of the date of the enactment of this
    Act, is managed and budgeted as part of the TIARA budget aggregation):
                (1) Each targeting or target acquisition program of the
            Department of Defense, including the Joint Surveillance and
            Target Attack Radar System (JSTARS) and the Advanced Deployable
            System.
                (2) Each Tactical Warning and Attack Assessment program of
            the Department of Defense, including the Defense Support
            Program, the Space-Based Infrared Program, and early warning
            radars.
                (3) Each tactical communications system of the Department of
            Defense, including the Joint Tactical Terminal.

        (f) TIARA Budget Aggregation Defined.--For purposes of this section,
    the term ``TIARA budget aggregation'' means the aggregation of programs
    of the Department of Defense for which funds are managed and budgeted
    through a common designation as Tactical Intelligence and Related
    Activities (TIARA) of the Department of Defense.

    [[Page 111 STAT. 1865]]

    SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED
                UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE
                INTELLIGENCE COMMUNITY.

        (a) Findings.--Congress makes the following findings:
                (1) Coordination of operational intelligence support for the
            commanders of the combatant commands and deployed units of the
            Armed Forces has proven to be inadequate.
                (2) Procedures used to reconcile information among various
            intelligence community and Department of Defense data bases have
            proven to be inadequate and, being inadequate, have diminished
            the usefulness of that information and have precluded commanders
            and planners within the Armed Forces from fully benefiting from
            key information that should have been available to them.
                (3) Excessive compartmentalization of responsibilities and
            information within the Department of Defense and the other
            elements of the intelligence community has resulted in
            inaccurate analysis of important intelligence material.
                (4) Excessive restrictions on the distribution of
            information within the executive branch have disadvantaged units
            of the Armed Forces that would have benefited most from the
            information.
                (5) Procedures used in the Department of Defense to ensure
            that critical intelligence information is provided to the right
            combat units in a timely manner failed during the Persian Gulf
            War and, as a result, information about potential chemical
            weapons storage locations did not reach the units that
            eventually destroyed those storage areas.
                (6) A recent, detailed review of the events leading to and
            following the destruction of chemical weapons by members of the
            Armed Forces at Khamisiyah, Iraq, during the Persian Gulf War
            has revealed a number of inadequacies in the way the Department
            of Defense and the other elements of the intelligence community
            handled, distributed, recorded, and stored intelligence
            information about the threat of exposure of United States forces
            to chemical weapons and the toxic agents in those weapons.
                (7) The inadequacy of procedures for recording the receipt
            of, and reaction to, intelligence reports provided by the
            intelligence community to combat units of the Armed Forces
            during the Persian Gulf War has caused it to be impossible to
            analyze the failures in transmission of intelligence-related
            information on the location of chemical weapons at Khamisiyah,
            Iraq, that resulted in the demolition of chemical weapons by
            members of the Armed Forces unaware of the hazards to which they
            were exposed.

        (b) Report Requirement.--Not later than March 1, 1998, the Secretary
    of Defense shall submit to Congress a report that identifies the
    specific actions that have been taken or are being taken to ensure that
    there is adequate coordination of access of commanders of the combatant
    commands and deployed units of the Armed Forces to intelligence
    collected and analyzed by the intelligence community.

    [[Page 111 STAT. 1866]]

    SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL
                INFORMATION AND DATA.

        (a) Protection of Information on Capabilities.--Paragraph (1)(B) of
    section 455(b) of title 10, United States Code, is amended by inserting
    ``, or capabilities,'' after ``methods''.
        (b) Products Protected.--(1) Paragraph (2) of such section is
    amended to read as follows:
        ``(2) In this subsection, the term `geodetic product' means imagery,
    imagery intelligence, or geospatial information.''.
        (2) Section 467(4) of title 10, United States Code, is amended--
                (A) by inserting ``and'' at the end of subparagraph (A);
                (B) in subparagraph (B), by striking out ``and geodetic
            data; and'' and inserting in lieu thereof ``geodetic data, and
            related products.''; and
                (C) by striking out subparagraph (C).

    SEC. 934. POW/MIA <<NOTE: 10 USC 1501 note.>>  INTELLIGENCE ANALYSIS.

        (a) Intelligence Analysis.--The Director of Central Intelligence, in
    consultation with the Secretary of Defense, shall provide intelligence
    analysis on matters concerning prisoners of war and missing persons (as
    defined in chapter 76 of title 10, United States Code) to all
    departments and agencies of the Federal Government involved in such
    matters.
        (b) Use of Intelligence in Analysis of POW/MIA Cases in Department
    of Defense.--The Secretary of Defense shall ensure that the Defense
    Prisoner of War/Missing Personnel Office of the Department of Defense
    takes into full account all intelligence regarding matters concerning of
    prisoners of war and missing persons (as defined in chapter 76 of title
    10, United States Code) in analyzing cases involving such persons.

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Incorporation of classified annex.
    Sec. 1003. Authority for obligation of unauthorized fiscal year 1997
               defense appropriations.
    Sec. 1004. Authorization of prior emergency supplemental appropriations
               for fiscal year 1997.
    Sec. 1005. Increase in fiscal year 1996 transfer authority.
    Sec. 1006. Revision of authority for Fisher House trust funds.
    Sec. 1007. Flexibility in financing closure of certain outstanding
               contracts for which a small final payment is due.
    Sec. 1008. Biennial financial management improvement plan.
    Sec. 1009. Estimates and requests for procurement and military
               construction for the reserve components.
    Sec. 1010. Sense of Congress regarding funding for reserve component
               modernization not requested in President's budget.
    Sec. 1011. Management of working-capital funds.
    Sec. 1012. Authority of Secretary of Defense to settle claims relating
               to pay,
               allowances, and other benefits.
    Sec. 1013. Payment of claims by members for loss of personal property
               due to
               flooding in Red River Basin.
    Sec. 1014. Advances for payment of public services.
    Sec. 1015. United States Man and the Biosphere Program limitation.

                     Subtitle B--Naval Vessels and Shipyards

    Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel
               Register.
    Sec. 1022. Authority to enter into a long-term charter for a vessel in
               support of the Surveillance Towed-Array Sensor (SURTASS)
               program.
    Sec. 1023. Transfer of two specified obsolete tugboats of the Army.

    [[Page 111 STAT. 1867]]

    Sec. 1024. Congressional review period with respect to transfer of ex-
               U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
    Sec. 1025. Transfers of naval vessels to certain foreign countries.
    Sec. 1026. Reports relating to export of vessels that may contain
               polychlorinated biphenyls.
    Sec. 1027. Conversion of defense capability preservation authority to
               Navy shipbuilding capability preservation authority.

                       Subtitle C--Counter-Drug Activities

    Sec. 1031. Use of National Guard for State drug interdiction and
               counter-drug
               activities.
    Sec. 1032. Authority to provide additional support for counter-drug
               activities of Mexico.
    Sec. 1033. Authority to provide additional support for counter-drug
               activities of Peru and Colombia.
    Sec. 1034. Annual report on development and deployment of narcotics
               detection technologies.

            Subtitle D--Miscellaneous Report Requirements and Repeals

    Sec. 1041. Repeal of miscellaneous reporting requirements.
    Sec. 1042. Study of transfer of modular airborne fire fighting system.
    Sec. 1043. Overseas infrastructure requirements.
    Sec. 1044. Additional matters for annual report on activities of the
               General
               Accounting Office.
    Sec. 1045. Eye safety at small arms firing ranges.
    Sec. 1046. Reports on Department of Defense procedures for investigating
               military aviation accidents and for notifying and assisting
               families of victims.

                    Subtitle E--Matters Relating to Terrorism

    Sec. 1051. Oversight of counterterrorism and antiterrorism activities;
               report.
    Sec. 1052. Provision of adequate troop protection equipment for Armed
               Forces
               personnel engaged in peace operations; report on
               antiterrorism activities and protection of personnel.

                Subtitle F--Matters Relating to Defense Property

    Sec. 1061. Lease of nonexcess personal property of military departments.
    Sec. 1062. Lease of nonexcess property of Defense Agencies.
    Sec. 1063. Donation of excess chapel property to churches damaged or
               destroyed by arson or other acts of terrorism.
    Sec. 1064. Authority of the Secretary of Defense concerning disposal of
               assets under cooperative agreements on air defense in Central
               Europe.
    Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and
               ammunition components.
    Sec. 1066. Transfer of B-17 aircraft to museum.
    Sec. 1067. Report on disposal of excess and surplus materials.

                            Subtitle G--Other Matters

    Sec. 1071. Authority for special agents of the Defense Criminal
               Investigative
               Service to execute warrants and make arrests.
    Sec. 1072. Study of investigative practices of military criminal
               investigative organizations relating to sex crimes.
    Sec. 1073. Technical and clerical amendments.
    Sec. 1074. Sustainment and operation of the Global Positioning System.
    Sec. 1075. Protection of safety-related information voluntarily provided
               by air
               carriers.
    Sec. 1076. National Guard Challenge Program to create opportunities for
               civilian youth.
    Sec. 1077. Disqualification from certain burial-related benefits for
               persons
               convicted of capital crimes.
    Sec. 1078. Restrictions on the use of human subjects for testing of
               chemical or
               biological agents.
    Sec. 1079. Treatment of military flight operations.
    Sec. 1080. Naturalization of certain foreign nationals who serve
               honorably in the Armed Forces during a period of conflict.
    Sec. 1081. Applicability of certain pay authorities to members of
               specified
               independent study organizations.
    Sec. 1082. Display of POW/MIA flag.
    Sec. 1083. Program to commemorate 50th anniversary of the Korean
               conflict.
    Sec. 1084. Commendation of members of the Armed Forces and Government
               civilian personnel who served during the Cold War;
               certificate of recognition.

    [[Page 111 STAT. 1868]]

    Sec. 1085. Sense of Congress on granting of statutory Federal charters.
    Sec. 1086. Sense of Congress regarding military voting rights.
    Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed
               Forces of the United States.
    Sec. 1088. Five-year extension of aviation insurance program.

                          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
    1998 between any such authorizations for that fiscal year (or any
    subdivisions thereof). Amounts of authorizations so transferred shall be
    merged with and be available for the same purposes as the authorization
    to which transferred.
        (2) The total amount of authorizations that the Secretary of Defense
    may transfer under the authority of this section may not exceed
    $2,000,000,000.
        (b) Limitations.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide authority for items that
            have a higher priority than the items from which authority is
            transferred; and
                (2) may not be used to provide authority for an item that
            has been denied authorization by Congress.

        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount is
    transferred by an amount equal to the amount transferred.
        (d) Notice to Congress.--The Secretary shall promptly notify
    Congress of each transfer made under subsection (a).

    SEC. 1002. INCORPORATION <<NOTE: 10 USC 114 note.>>  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. 1119 of the One Hundred Fifth Congress and transmitted to the
    President is hereby incorporated into this Act.
        (b) Construction With Other Provisions of Act.--The amounts
    specified in the Classified Annex are not in addition to amounts
    authorized to be appropriated by other provisions of this Act.
        (c) Limitation on Use of Funds.--Funds appropriated pursuant to an
    authorization contained in this Act that are made available for a
    program, project, or activity referred to in the Classified Annex may
    only be expended for such program, project, or activity in accordance
    with such terms, conditions, limitations, restrictions, and requirements
    as are set out for that program, project, or activity in the Classified
    Annex.
        (d) Distribution of Classified Annex.--The President shall provide
    for appropriate distribution of the Classified Annex, or of appropriate
    portions of the annex, within the executive branch of the Government.

    [[Page 111 STAT. 1869]]

    SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997
                DEFENSE APPROPRIATIONS.

        (a) Authority.--The amounts described in subsection (b) may be
    obligated and expended for programs, projects, and activities of the
    Department of Defense in accordance with fiscal year 1997 defense
    appropriations.
        (b) Covered Amounts.--The amounts referred to in subsection (a) are
    the amounts provided for programs, projects, and activities of the
    Department of Defense in fiscal year 1997 defense appropriations that
    are in excess of the amounts provided for such programs, projects, and
    activities in fiscal year 1997 defense authorizations.
        (c) Definitions.--For the purposes of this section:
                (1) Fiscal year 1997 defense appropriations.--The term
            ``fiscal year 1997 defense appropriations'' means amounts
            appropriated or otherwise made available to the Department of
            Defense for fiscal year 1997 in the Department of Defense
            Appropriations Act, 1997 (as contained in section 101(b) of
            Public Law 104-208).
                (2) Fiscal year 1997 defense authorizations.--The term
            ``fiscal year 1997 defense authorizations'' means amounts
            authorized to be appropriated for the Department of Defense for
            fiscal year 1997 in the National Defense Authorization Act for
            Fiscal Year 1997 (Public Law 104-201).

    SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS
                FOR FISCAL YEAR 1997.

        Amounts authorized to be appropriated to the Department of Defense
    for fiscal year 1997 in the National Defense Authorization Act for
    Fiscal Year 1997 (Public Law 104-201) 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 1997
    Emergency Supplemental Appropriations Act for Recovery from Natural
    Disasters, and for Overseas Peacekeeping Efforts, Including Those in
    Bosnia (Public Law 105-18).

    SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

        Section 1001(a)(2) of the National Defense Authorization Act for
    Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) is amended by
    striking out ``$2,000,000,000'' and inserting in lieu thereof
    ``$3,100,000,000''.

    SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

        (a) Correction To Eliminate Use of Term Associated With Funding
    Authorities.--Section 2221(c) of title 10, United States Code, is
    amended by striking out ``or maintenance'' each place it appears.
        (b) Corpus <<NOTE: 10 USC 2221 note.>>  of Air Force Trust Fund.--
    The Secretary of the Air Force shall deposit in the Fisher House Trust
    Fund, Department of the Air Force, an amount that the Secretary
    determines appropriate to establish the corpus of the fund.

    SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING
                CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

        (a) Closure of <<NOTE: Applicability.>>  Outstanding Contracts.--The
    Secretary of Defense may make the final payment on a contract to which
    this

    [[Page 111 STAT. 1870]]

    section applies from the account established pursuant to subsection (d).

        (b) Covered <<NOTE: Applicability.>>  Contracts.--This section
    applies to any contract of the Department of Defense--
                (1) that was entered into before December 5, 1990; and
                (2) for which an unobligated balance of an appropriation
            that had been initially applied to the contract was canceled
            before December 5, 1990, pursuant to section 1552 of title 31,
            United States Code, as in effect before that date.

        (c) Authority Limited to Small Final Payments.--The Secretary may
    use the authority provided by this section only for a contract for which
    the amount of the final payment due is not greater than the micro-
    purchase threshold (as defined in section 32 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 428)).
        (d) Account.--The Secretary may establish an account for the
    purposes of this section. The Secretary may from time to time transfer
    into the account, from funds made available to the Department of Defense
    for procurement or for research, development, test, and evaluation, such
    amounts as the Secretary determines to be needed for the purposes of the
    account, except that the total of such transfers may not exceed
    $1,000,000. Amounts in the account may be used only for the purposes of
    this section.
        (e) Closure of Account.--When the Secretary determines that all
    contracts to which this section applies have been closed and there is no
    further need for the account established under subsection (d), the
    Secretary shall close the account. Any amounts remaining in the account
    shall be covered into the Treasury as miscellaneous receipts.

    SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

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

    ``Sec. 2222. Biennial financial management improvement plan

        ``(a) Biennial Plan Required.--The Secretary of Defense shall submit
    to Congress a biennial strategic plan for the improvement of financial
    management within the Department of Defense. The plan shall be submitted
    not later than September 30 of each even-numbered year.
        ``(b) Concept of Operations.--Each plan under subsection (a) shall
    include a statement of the Secretary of Defense's concept of operations
    for the financial management of the Department of Defense. Each such
    statement shall be a clear description of the manner in which the
    Department's financial management operations are carried out or will be
    carried out under the improvements set forth in the plan under
    subsection (a), including identification of operations that must be
    performed.
        ``(c) Matters To Be Addressed in Plan.--(1) Each plan under
    subsection (a) shall address all aspects of financial management within
    the Department of Defense, including the finance systems, accounting
    systems, and data feeder systems of the Department that support
    financial functions of the Department.
        ``(2) For the purposes of paragraph (1), a data feeder system is an
    automated or manual system from which information is derived for a
    financial management system or an accounting system.''.

    [[Page 111 STAT. 1871]]

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

    ``2222. Biennial financial management improvement plan.''.

        (b) Additional <<NOTE: 10 USC 2222 note.>>  Content of First Plan.--
    The first financial management improvement plan submitted under section
    2222 of title 10, United States Code (as added by subsection (a)), shall
    include the following:
                (1) A description of the costs and benefits of integrating
            the various finance and accounting systems of the Department of
            Defense and reducing the total number of such systems, together
            with the Secretary's assessment of the feasibility of
            implementing such an integration.
                (2) Identification of problems with the accuracy of data
            included in the finance systems, accounting systems, and data
            feeder systems that support financial functions of the
            Department of Defense, together with a description of the
            actions that the Secretary can take to address those problems.
                (3) Identification of weaknesses in the internal controls of
            the systems referred to in paragraph (2), together with a
            description of the actions that the Secretary can take to
            address those weaknesses.
                (4) A description of actions that the Secretary can take to
            eliminate negative unliquidated obligations, unmatched
            disbursements, and in-transit disbursements and to avoid such
            obligations and disbursements in the future.
                (5) A description of the status of the efforts being
            undertaken in the Department to consolidate and eliminate--
                        (A) redundant or unneeded finance systems; and
                        (B) redundant or unneeded accounting systems.
                (6) A description of efforts being undertaken to consolidate
            or eliminate redundant personnel data systems, acquisition data
            systems, asset accounting systems, time and attendance systems,
            and other data feeder systems of the Department.
                (7) A description of efforts being undertaken to integrate
            the data feeder systems of the Department with the finance and
            accounting systems of the Department.
                (8) A description of problems with the organization or
            performance of the Operating Locations and Service Centers of
            the Defense Finance and Accounting Service, together with a
            description of the actions the Secretary can take to address
            those problems.
                (9) A description of the costs and benefits of reorganizing
            the Operating Locations and Service Centers of the Defense
            Finance and Accounting Service according to function, together
            with the Secretary's assessment of the feasibility of carrying
            out such a reorganization.
                (10) A description of the costs and benefits of contracting
            for private-sector performance of specific functions currently
            performed by the Defense Finance and Accounting Service,
            together with the Secretary's assessment of the feasibility of
            contracting for such performance.
                (11) A description of actions that can be taken to ensure
            that each comptroller position (and comparable position) in the
            Department of Defense, whether filled by a member of the Armed
            Forces or by a civilian employee, is held by a person who, by
            reason of education, technical competence, and

    [[Page 111 STAT. 1872]]

            experience, has the core competencies for financial management.
                (12) A description of any other change in the financial
            management structure of the Department or revision of the
            financial processes and business practices of the Department
            that the Secretary considers necessary to improve financial
            management in the Department.

        (c) Additional <<NOTE: 10 USC 2222 note.>>  Matters.--For each of
    the problems and actions identified pursuant to paragraphs (1) through
    (12) of subsection (b) or in any other part of the plan covered by that
    subsection, the Secretary shall include statements of objectives,
    performance measures, and schedules and shall specify the individual and
    organizational responsibilities.

        (d) Definition.--In <<NOTE: 10 USC 2222 note.>>  subsection (b), the
    term ``data feeder system'' has the meaning given that term in
    subsection (c)(2) of section 2222 of title 10, United States Code, as
    added by subsection (a).

    SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY
                CONSTRUCTION FOR THE RESERVE COMPONENTS.

        (a) Detailed Presentation in Future-Years Defense Program.--Section
    10543 of title 10, United States Code, is amended--
                (1) by inserting ``(a) In General.--'' before ``The
            Secretary of Defense''; and
                (2) by adding at the end the following:

        ``(b) Associated Annexes.--The associated annexes of the future-
    years defense program shall specify, at the same level of detail as is
    set forth in the annexes for the active components, the amount requested
    for--
                ``(1) procurement of each item of equipment to be procured
            for each reserve component; and
                ``(2) each military construction project to be carried out
            for each reserve component, together with the location of the
            project.

        ``(c) Report.--(1) If the aggregate of the amounts specified in
    paragraphs (1) and (2) of subsection (b) for a fiscal year is less than
    the amount equal to 90 percent of the average authorized amount
    applicable for that fiscal year under paragraph (2), the Secretary of
    Defense shall submit to Congress a report specifying for each reserve
    component the additional items of equipment that would be procured, and
    the additional military construction projects that would be carried out,
    if that aggregate amount were an amount equal to such average authorized
    amount. The report shall be at the same level of detail as is required
    by subsection (b).
        ``(2) In this subsection, the term `average authorized amount', with
    respect to a fiscal year, means the average of--
                ``(A) the aggregate of the amounts authorized to be
            appropriated for the preceding fiscal year for the procurement
            of items of equipment, and for military construction, for the
            reserve components; and
                ``(B) the aggregate of the amounts authorized to be
            appropriated for the fiscal year preceding the fiscal year
            referred to in subparagraph (A) for the procurement of items of
            equipment, and for military construction, for the reserve
            components.''.

        (b) Prohibition.--The <<NOTE: 10 USC 10543 note.>>  level of detail
    provided for procurement and military construction in the future-years
    defense programs for fiscal years after fiscal year 1998 may not be less
    than the

    [[Page 111 STAT. 1873]]

    level of detail provided for procurement and military construction in
    the future-years defense program for fiscal year 1998.

    SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT
                MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.

        (a) Criteria.--It is the sense of Congress that, to the maximum
    extent practicable, Congress should authorize appropriations for
    procurement of reserve component modernization equipment for a fiscal
    year for equipment that is not included in the budget of the President
    for that fiscal year only if--
                (1) there is a requirement for that equipment that has been
            validated by the Joint Requirements Oversight Council;
                (2) procurement of that equipment is included for reserve
            component modernization in the modernization plan of the
            military department concerned and is incorporated into the
            current future-years defense program;
                (3) procurement of that equipment is consistent with planned
            use of reserve component forces under Department of Defense war
            plans; and
                (4) funds for that procurement, if authorized and
            appropriated for that fiscal year, could be obligated during
            that fiscal year.

        (b) Consideration of Views of Chairman of Joint Chiefs of Staff.--It
    is further the sense of Congress that, in applying the criteria set
    forth in subsection (a) with respect to procurement of reserve component
    modernization equipment, Congress should obtain the views of the
    Chairman of the Joint Chiefs of Staff on whether, under Department of
    Defense war plans, that equipment is appropriate for procurement for,
    and assignment to, reserve component forces.

    SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

        (a) Contracting for Capital Assets Procurement in Advance of
    Funds.--Section 2208 of title 10, United States Code, is amended by
    striking out subsection (k) and inserting in lieu thereof the following
    new subsection:
        ``(k)(1) Subject to paragraph (2), a contract for the procurement of
    a capital asset financed by a working-capital fund may be awarded in
    advance of the availability of funds in the working-capital fund for the
    procurement.
        ``(2) Paragraph (1) applies to any of the following capital assets
    that have a development or acquisition cost of not less than $100,000:
                ``(A) An unspecified minor military construction project
            under section 2805(c)(1) of this title.
                ``(B) Automatic data processing equipment or software.
                ``(C) Any other equipment.
                ``(D) Any other capital improvement.''.

        (b) Use of Advance Billing.--Such section is further amended by
    adding at the end the following new subsection:
        ``(l)(1) An advance billing of a customer of a working-capital fund
    may be made if the Secretary of the military department concerned
    submits to Congress written notification of the advance billing within
    30 days after the end of the month in which the advanced billing was
    made. The notification shall include the
    following:
                ``(A) The reasons for the advance billing.

    [[Page 111 STAT. 1874]]

                ``(B) An analysis of the effects of the advance billing on
            military readiness.
                ``(C) An analysis of the effects of the advance billing on
            the customer.

        ``(2) The Secretary of Defense may waive the notification
    requirements of paragraph (1)--
                ``(A) during a period war or national emergency; or
                ``(B) to the extent that the Secretary determines necessary
            to support a contingency operation.

        ``(3) In this subsection:
                ``(A) The term `advance billing', with respect to a working-
            capital fund, means a billing of a customer by the fund, or a
            requirement for a customer to reimburse or otherwise credit the
            fund, for the cost of goods or services provided (or for other
            expenses incurred) on behalf of the customer that is rendered or
            imposed before the customer receives the goods or before the
            services have been performed.
                ``(B) The term `customer' means a requisitioning component
            or agency.''.

        (c) Fiscal Year Limitations.--(1) The total amount of advance
    billings for Department of the Navy working-capital funds and the
    Defense Business Operations Fund may not exceed--
                (A) $1,000,000,000 for fiscal year 1998; and
                (B) $800,000,000 for fiscal year 1999.

        (2) For purposes of paragraph (1), the term ``advance billing'' has
    the meaning given such term in section 2208(l)(3) of title 10, United
    States Code, as added by subsection (b).

    SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING
                TO PAY, ALLOWANCES, AND OTHER BENEFITS.

        Section 3702(e) of title 31, United States Code, is amended--
                (1) in paragraph (1), by striking out ``Comptroller
            General'' and inserting in lieu thereof ``Secretary of
            Defense''; and
                (2) by striking out paragraph (2) and inserting in lieu
            thereof the following new paragraph:

        ``(2) Payment of a claim settled under paragraph (1) shall be made
    from an appropriation that is available, for the fiscal year in which
    the payment is made, for the same purpose as the appropriation to which
    the obligation claimed would have been charged if the obligation had
    been timely paid.''.

    SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY
                DUE TO FLOODING IN RED RIVER BASIN.

        (a) Payment Authorized.--Notwithstanding section 3721(e) of title
    31, United States Code, the Secretary of a military department may pay
    the claim of a member of the Armed Forces who resided (or whose
    dependents resided) in the vicinity of Grand Forks Air Force Base, North
    Dakota, during April and May 1997 for loss and damage to personal
    property incurred by the member as a direct result of the flooding in
    the Red River Basin during such months.
        (b) Report on <<NOTE: 10 USC 2731 note.>>  Department Policy.--The
    Secretary of Defense shall submit to Congress a report describing the
    Department of Defense policy regarding the payment of a claim by a
    member of the Armed Forces who is not assigned to quarters of the United
    States for losses and damage to personal property of the member incurred
    at the member's residence as a result of a natural disaster. The report
    shall include a description of the number of such claims

    [[Page 111 STAT. 1875]]

    received over the past 10 years, the number of claims paid, and the
    number of claims rejected. If the Secretary determines the Department of
    Defense should modify its policy in order to accept additional claims by
    members who are not assigned to quarters of the United States for losses
    and damage to personal property, the Secretary shall also include in the
    report any legislative changes that the Secretary considers necessary to
    enable the Secretary to implement the policy change.

    SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

        (a) In General.--Subsection (a) of section 2396 of title 10, United
    States Code, is amended--
                (1) by striking out ``and'' at the end of paragraph (2);
                (2) by striking out the period at the end of paragraph (3)
            and inserting in lieu thereof ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(4) public service utilities.''.

        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 2396. Advances for payments for compliance with foreign laws,
                            rent in foreign countries, tuition, public
                            utility services, and pay and supplies of armed
                            forces of friendly foreign countries''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 141 of such title is amended to read as
    follows:

    ``2396. Advances for payments for compliance with foreign laws, rent in
               foreign countries, tuition, public utility services, and pay
               and supplies of armed forces of friendly foreign
               countries.''.

    SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

        During fiscal year 1998, the Secretary of Defense may not take any
    steps to carry out or support the United States Man and the Biosphere
    Program or any related project.

                     Subtitle B--Naval Vessels and Shipyards

    SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL VESSEL
                REGISTER.

        Section 7305(c) of title 10, United States Code, is amended to read
    as follows:
        ``(c) Procedures for Sale.--(1) A vessel stricken from the Naval
    Vessel Register and not subject to disposal under any other law may be
    sold under this section.
        ``(2) In such a case, the Secretary may--
                ``(A) sell the vessel to the highest acceptable bidder,
            regardless of the appraised value of the vessel, after publicly
            advertising the sale of the vessel for a period of not less than
            30 days; or
                ``(B) subject to paragraph (3), sell the vessel by
            competitive negotiation to the acceptable offeror who submits
            the offer that is most advantageous to the United States (taking
            into account price and such other factors as the Secretary
            determines appropriate).

    [[Page 111 STAT. 1876]]

        ``(3) Before <<NOTE: Publication.>>  entering into negotiations to
    sell a vessel under paragraph (2)(B), the Secretary shall publish notice
    of the intention to do so in the Commerce Business Daily sufficiently in
    advance of initiating the negotiations that all interested parties are
    given a reasonable opportunity to prepare and submit proposals. The
    Secretary shall afford an opportunity to participate in the negotiations
    to all acceptable offerors submitting proposals that the Secretary
    considers as having the potential to be the most advantageous to the
    United States (taking into account price and such other factors as the
    Secretary determines appropriate).''.

    SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN
                SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR (SURTASS)
                PROGRAM.

        The Secretary of the Navy is authorized to enter into a contract in
    accordance with section 2401 of title 10, United States Code, for the
    charter, for a period through fiscal year 2003, of the vessel RV CORY
    CHOUEST (United States official number 933435) in support of the
    Surveillance Towed-Array Sensor (SURTASS) program.

    SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

        (a) Authority To Transfer Vessels.--The Secretary of the Army may
    transfer the two obsolete tugboats of the Army described in subsection
    (b) to the Brownsville Navigation District, Brownsville, Texas.
        (b) Vessels Covered.--Subsection (a) applies to the following two
    decommissioned tugboats of the Army, each of which is listed as of the
    date of the enactment of this Act as being surplus to the needs of the
    Army: the Normandy (LT-1971) and the Salerno (LT-1953).
        (c) Transfers To Be at No Cost to United States.--A transfer
    authorized by this section shall be made at no cost to the United
    States.
        (d) Terms and Conditions.--The Secretary may require such additional
    terms and conditions in connection with the transfers authorized by this
    section as the Secretary considers appropriate.

    SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-
                U.S.S. HORNET (CV-12) AND EX-U.S.S. MIDWAY (CV-41).

        (a) Reduction in Congressional Review Period.--In applying section
    7306 of title 10, United States Code, with respect to the transfer of a
    vessel specified in subsection (c), subsection (d)(1)(B) of that section
    shall be applied by substituting ``30 days'' for ``60 days''.
        (b) Waiver if Only One Qualified Entity Applies for Transfer of
    Vessel.--If in the case of a vessel specified in subsection (c) only a
    single qualified entity, as determined by the Secretary of the Navy,
    applies for transfer of the vessel, the Secretary may carry out the
    transfer of the vessel under section 7306 of title 10, United States
    Code, without regard to subsection (d)(1)(B) of that section. In such a
    case, the transfer may be made only after 10 days of continuous session
    of Congress (determined in the manner specified in section 7306(d)(2) of
    title 10, United States Code) have expired following the date on which
    the Secretary submits

    [[Page 111 STAT. 1877]]

    to Congress a certification that only a single qualified entity applied
    for transfer of the vessel.
        (c) Covered Vessels.--This section applies to the following vessels
    (each of which is a decommissioned aircraft carrier):
                (1) Ex-U.S.S. HORNET (CV-12).
                (2) Ex-U.S.S. MIDWAY (CV-41).

    SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

        (a) Authority.--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 HUNLEY class submarine
            tender HOLLAND (AS 32).
                (2) To the Government of Chile, the KAISER class oiler
            ISHERWOOD (T-AO 191).
                (3) To the Government of Egypt:
                        (A) The following frigates of the KNOX class:
                              (i) The PAUL (FF 1080).
                              (ii) The MILLER (FF 1091).
                              (iii) The JESSE L. BROWN (FFT 1089).
                              (iv) The MOINESTER (FFT 1097).
                        (B) The following frigates of the OLIVER HAZARD
                    PERRY class:
                              (i) The FAHRION (FFG 22).
                              (ii) The LEWIS B. PULLER (FFG 23).
                (4) To the Government of Israel, the NEWPORT class tank
            landing ship PEORIA (LST 1183).
                (5) To the Government of Malaysia, the NEWPORT class tank
            landing ship BARBOUR COUNTY (LST 1195).
                (6) To the Government of Mexico, the KNOX class frigate
            ROARK (FF 1053).
                (7) To the Taipei 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), the following frigates of the KNOX class:
                        (A) The WHIPPLE (FF 1062).
                        (B) The DOWNES (FF 1070).
                (8) To the Government of Thailand, the NEWPORT class tank
            landing ship SCHENECTADY (LST 1185).

        (b) Costs of Transfers.--Any expense incurred by the United States
    in connection with a transfer authorized by subsection (a) shall be
    charged to the recipient.
        (c) 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.
        (d) Expiration of Authority.--The authority to transfer a vessel
    under subsection (a) shall expire at the end of the two-year period
    beginning on the date of the enactment of this Act.

    [[Page 111 STAT. 1878]]

    SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN
                POLYCHLORINATED BIPHENYLS.

        (a) Reports Required.--Not later than March 1, 1998, the Secretary
    of the Navy (with respect to the Navy), the Administrator of the
    Maritime Administration (with respect to the Maritime Administration),
    and the Administrator of the Environmental Protection Agency (with
    respect to the Environmental Protection Agency) shall each submit to
    Congress a report on the implementation of the agreement between the
    Department of the Navy and the Environmental Protection Agency that
    became effective August 6, 1997, and that is titled ``Export of Naval
    Vessels that May Contain Polychlorinated Biphenyls for Scrapping Outside
    the United States''.
        (b) Contents of Reports.--The reports required by subsection (a)
    shall address, at a minimum, the following:
                (1) An assessment of the effects of the notification
            requirements regarding the export of vessels for scrapping, any
            impediments that those requirements may create for the export of
            vessels, and any changes to the agreement that may be required
            to address those impediments.
                (2) An explanation of the process by which it is determined
            which solid items containing polychlorinated biphenyls are
            readily removable and must be removed before the export of a
            vessel for scrapping, what types of polychlorinated biphenyls
            have been determined to be readily removable pursuant to this
            process, any impediments that such determinations may create for
            the export of vessels, and any changes to the agreement that may
            be required to address those impediments or to ensure protection
            of human health and the environment.

        (c) Amendments Relating to Disposal of Obsolete Vessels From the
    National Defense Reserve Fleet.--Section 6 of the National Maritime
    Heritage Act of 1994 (Public Law 103-451; 108 Stat. 4776; 16 U.S.C.
    5405) is amended--
                (1) in subsections (a)(1) and (b)(2)--
                        (A) by inserting ``or 510(i)'' after ``508''; and
                        (B) by inserting ``or 1160(i)'' after ``1158'';
                (2) in subsection (b)(2), by striking out ``first 6'' and
            inserting in lieu thereof ``first 8''; and
                (3) in subsection (c)(1)(A), by striking out ``1999'' and
            inserting in lieu thereof ``2001''.

    SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO
                NAVY SHIPBUILDING CAPABILITY PRESERVATION AUTHORITY.

        (a) In General.--(1) Chapter 633 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 7315. Preservation of Navy shipbuilding capability

        ``(a) Shipbuilding Capability Preservation Agreements.--The
    Secretary of the Navy may enter into an agreement, to be known as a
    `shipbuilding capability preservation agreement', with a shipbuilder
    under which the cost reimbursement rules described in subsection (b)
    shall be applied to the shipbuilder under a Navy contract for the
    construction of a ship. Such an agreement may be entered into in any
    case in which the Secretary determines

    [[Page 111 STAT. 1879]]

    that the application of such cost reimbursement rules would facilitate
    the achievement of the policy objectives set forth in section 2501(b) of
    this title.
        ``(b) Cost Reimbursement Rules.--The cost reimbursement rules
    applicable under an agreement entered into under subsection (a) are as
    follows:
                ``(1) The Secretary of the Navy shall, in determining the
            reimbursement due a shipbuilder for its indirect costs of
            performing a contract for the construction of a ship for the
            Navy, allow the shipbuilder to allocate indirect costs to its
            private sector work only to the extent of the shipbuilder's
            allocable indirect private sector costs, subject to paragraph
            (3).
                ``(2) For purposes of paragraph (1), the allocable indirect
            private sector costs of a shipbuilder are those costs of the
            shipbuilder that are equal to the sum of the following:
                        ``(A) The incremental indirect costs attributable to
                    such work.
                        ``(B) The amount by which the revenue attributable
                    to such private sector work exceeds the sum of--
                              ``(i) the direct costs attributable to such
                          private sector work; and
                              ``(ii) the incremental indirect costs
                          attributable to such private sector work.
                ``(3) The total amount of allocable indirect private sector
            costs for a contract covered by the agreement may not exceed the
            amount of indirect costs that a shipbuilder would have allocated
            to its private sector work during the period covered by the
            agreement in accordance with the shipbuilder's established
            accounting practices.

        ``(c) Authority To Modify Cost Reimbursement Rules.--The cost
    reimbursement rules set forth in subsection (b) may be modified by the
    Secretary of the Navy for a particular agreement if the Secretary
    determines that modifications are appropriate to the particular
    situation to facilitate achievement of the policy set forth in section
    2501(b) of this title.
        ``(d) Applicability.--(1) An agreement entered into with a
    shipbuilder under subsection (a) shall apply to each of the following
    Navy contracts with the shipbuilder:
                ``(A) A contract that is in effect on the date on which the
            agreement is entered into.
                ``(B) A contract that is awarded during the term of the
            agreement.

        ``(2) In a shipbuilding capability preservation agreement applicable
    to a shipbuilder, the Secretary may agree to apply the cost
    reimbursement rules set forth in subsection (b) to allocations of
    indirect costs to private sector work performed by the shipbuilder only
    with respect to costs that the shipbuilder incurred on or after the date
    of the enactment of the National Defense Authorization Act for Fiscal
    Year 1998 under a contract between the shipbuilder and a private sector
    customer of the shipbuilder that became effective on or after January
    26, 1996.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``7315. Preservation of Navy shipbuilding capability.''.

    [[Page 111 STAT. 1880]]

        (b) Implementation.--Not <<NOTE: Regulations. 10 USC 7315 note.>>
    later than 30 days after the date of the enactment of this Act, the
    Secretary of the Navy shall establish application procedures and
    procedures for expeditious consideration of shipbuilding capability
    preservation agreements as authorized by section 7315 of title 10,
    United States Code, as added by subsection (a).

        (c) Report.--Not later than February 15, 1998, the Secretary of the
    Navy shall submit to Congress a report on applications for shipbuilding
    capability preservation agreements under section 7315 of title 10,
    United States Code, as added by subsection (a). The report shall specify
    the number of the applications received, the number of the applications
    approved, and a discussion of the reasons for disapproval of any
    application disapproved.
        (d) Repeal of Superseded Provision.--Section 808 of the National
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
    Stat. 393; 10 U.S.C. 2501 note) is repealed.

                       Subtitle C--Counter-Drug Activities

    SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND
                COUNTER-DRUG ACTIVITIES.

        (a) Relationship to Training and Readiness.--Subsection (b) of
    section 112 of title 32, United States Code, is amended--
                (1) by inserting ``(1)'' before ``Under regulations''; and
                (2) by adding at the end the following new paragraphs:

        ``(2) 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 is not detrimental to the training and readiness of such
    units and personnel, the requirements of section 2012(d) of title 10
    shall apply in determining the drug interdiction and counter-drug
    activities that units and personnel of the National Guard of a State may
    perform.
        ``(3) Section 508 of this title, regarding the provision of
    assistance to certain specified youth and charitable organizations,
    shall apply in any case in which a unit or member of the National Guard
    of a State is proposed to be used pursuant to a State drug interdiction
    and counter-drug activities plan to provide to an organization specified
    in subsection (d) of such section any of the services described in
    subsection (b) of such section or services regarding counter-drug
    education.''.
        (b) Engineer-Type Activities.--Subsection (c) of such section is
    amended--
                (1) by redesignating paragraphs (4) and (5) as paragraphs
            (5) and (6), respectively; and
                (2) by inserting after paragraph (3) the following new
            paragraph:
                ``(4) certify that any engineer-type activities (as defined
            by the Secretary of Defense) under the plan will be performed
            only by units and members of the National Guard;''.

        (c) Annual Report.--Such section is further amended--
                (1) by redesignating subsections (g) and (h) as subsections
            (h) and (i), respectively; and
                (2) by inserting after subsection (f) the following new
            subsection:

        ``(g) Annual Report.--The Secretary of Defense shall submit to
    Congress an annual report regarding assistance provided and

    [[Page 111 STAT. 1881]]

    activities carried out under this section during the preceding fiscal
    year. The report shall include the following:
                ``(1) The number of members of the National Guard excluded
            under subsection (e) from the computation of end strengths.
                ``(2) A description of the drug interdiction and counter-
            drug activities conducted under State drug interdiction and
            counter-drug activities plans referred to in subsection (c) with
            funds provided under this section.
                ``(3) An accounting of the amount of funds provided to each
            State.
                ``(4) A description of the effect on military training and
            readiness of using units and personnel of the National Guard to
            perform activities under the State drug interdiction and
            counter-drug activities plans.''.

        (d) Conforming Amendments.--Subsection (e) of such section is
    amended--
                (1) by striking out ``(1)'' before ``Members''; and
                (2) by striking out paragraph (2).

    SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG
                ACTIVITIES OF MEXICO.

        (a) Extension of Authority; Consultation of Secretary of State.--
    Subsection (a) of section 1031 of the National Defense Authorization Act
    for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637), is amended--
                (1) by striking out ``fiscal year 1997'' and inserting in
            lieu thereof ``fiscal years 1997 and 1998''; and
                (2) by inserting after the first sentence the following new
            sentence: ``In providing support to the Government of Mexico
            under this section, the Secretary of Defense shall consult with
            the Secretary of State.''.

        (b) Extension of Availability of Funds.--Subsection (d) of such
    section is amended--
                (1) by striking out ``not more than'' and inserting in lieu
            thereof ``an amount not to exceed''; and
                (2) by adding at the end the following new sentences:
            ``Funds made available for fiscal year 1997 under this
            subsection and unobligated by September 30, 1997, may be
            obligated during fiscal year 1998. No funds are authorized to be
            appropriated for fiscal year 1998 for the provision of support
            under this section.''.

    SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG
                ACTIVITIES OF PERU AND COLOMBIA.

        (a) Authority To Provide Support.--Subject to subsection (f), during
    fiscal years 1998 through 2002, the Secretary of Defense may provide
    either or both of the foreign governments named in subsection (b) with
    the support described in subsection (c) for the counter-drug activities
    of that government. In providing support to a government under this
    section, the Secretary of Defense shall consult with the Secretary of
    State. The support provided under the authority of this section shall be
    in addition to support provided to the governments under any other
    provision of law.
        (b) Governments Eligible To Receive Support.--The foreign
    governments eligible to receive counter-drug support under this section
    are as follows:
                (1) The Government of Peru.

    [[Page 111 STAT. 1882]]

                (2) The Government of Colombia.

        (c) Types of Support.--The authority under subsection (a) is limited
    to the provision of the following types of support to a government named
    in subsection (b):
                (1) The types of support specified in paragraphs (1), (2),
            and (3) of section 1031(b) of the National Defense Authorization
            Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2637).
                (2) The transfer of riverine patrol boats.
                (3) The maintenance and repair of equipment of the
            government that is used for counter-drug activities.

        (d) Applicability of Other Support Authorities.--Except as otherwise
    provided in this section, the provisions of section 1004 of the National
    Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10
    U.S.C. 374 note) shall apply to the provision of support under this
    section.
        (e) Fiscal Year 1998 Funding; Limitation on Obligations.--(1) Of the
    amount authorized to be appropriated under section 301(20) for drug
    interdiction and counter-drug activities, an amount not to exceed
    $9,000,000 shall be available for the provision of support under this
    section.
        (2) Amounts made available to carry out this section shall remain
    available until expended, except that the total amount obligated and
    expended under this section may not exceed $20,000,000 during any of the
    fiscal years 1999 through 2002.
        (f) Condition on Provision of Support.--(1) The Secretary of Defense
    may not obligate or expend funds during a fiscal year to provide support
    under this section to a government named in subsection (b) until the end
    of the 15-day period beginning on the date on which the Secretary
    submits to the congressional committees the written certification
    described in subsection (g) for that fiscal year.
        (2) In the case of the first fiscal year in which support is to be
    provided under this section to a government named in subsection (b), the
    obligation or expenditure of funds under this section to provide support
    to that government shall also be subject to the condition that--
                (A) the Secretary submit to the congressional committees the
            riverine counter-drug plan described in subsection (h); and
                (B) a period of 60 days expires after the date on which the
            report is submitted.

        (3) In the case of subsequent fiscal years in which support is to be
    provided under this section to a government named in subsection (b), the
    obligation or expenditure of funds under this section to provide support
    to that government shall also be subject to the condition that the
    Secretary submit to the congressional committees any revision of the
    counter-drug plan described in subsection (h) applicable to that
    government.
        (4) For purposes of this subsection, the term ``congressional
    committees'' means the following:
                (A) The Committee on Armed Services and the Committee on
            Foreign Relations of the Senate.
                (B) The Committee on National Security and the Committee on
            International Relations of the House of Representatives.

        (g) Required Certification.--The written certification required by
    subsection (f)(1) for a fiscal year is a certification of the following
    with respect to each government to receive support under this section:

    [[Page 111 STAT. 1883]]

                (1) That the provision of the support to the government will
            not adversely affect the military preparedness of the United
            States Armed Forces.
                (2) That the equipment and materiel provided as support will
            be used only by officials and employees of the government who
            have undergone background investigations by that government and
            have been approved by that government to perform counter-drug
            activities on the basis of the background investigations.
                (3) That the government has certified to the Secretary of
            Defense that--
                        (A) the equipment and materiel provided as support
                    will be used only by the officials and employees
                    referred to in paragraph (2);
                        (B) none of the equipment or materiel will be
                    transferred (by sale, gift, or otherwise) to any person
                    or entity not authorized by the United States to receive
                    the equipment or materiel; and
                        (C) the equipment and materiel will be used only for
                    the purposes intended by the United States Government.
                (4) That the government has implemented, to the satisfaction
            of the Secretary of Defense, a system that will provide an
            accounting and inventory of the equipment and materiel provided
            as support.
                (5) That the departments, agencies, and instrumentalities of
            the government will grant United States Government personnel
            access to any of the equipment or materiel provided as support,
            or to any of the records relating to such equipment or materiel,
            under terms and conditions similar to the terms and conditions
            imposed with respect to such access under section 505(a)(3) of
            the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
                (6) That the government will provide security with respect
            to the equipment and materiel provided as support that is
            substantially the same degree of security that the United States
            Government would provide with respect to such equipment and
            materiel.
                (7) That the government will permit continuous observation
            and review by United States Government personnel of the use of
            the equipment and materiel provided as support under terms and
            conditions similar to the terms and conditions imposed with
            respect to such observation and review under section 505(a)(3)
            of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).

        (h) Riverine Counter-Drug Plan.--The Secretary of Defense, in
    consultation with the Secretary of State, shall prepare for fiscal year
    1998 (and revise as necessary for subsequent fiscal years) a riverine
    counter-drug plan involving the governments named in subsection (b) to
    which support will be provided under this section. The plan for a fiscal
    year shall include the following with respect to each government to
    receive support under this section:
                (1) A detailed security assessment, including a discussion
            of the threat posed by illicit drug traffickers in the foreign
            country.
                (2) An evaluation of previous and ongoing riverine counter-
            drug operations by the government.

    [[Page 111 STAT. 1884]]

                (3) An assessment of the monitoring of past and current
            assistance provided by the United States under this section to
            the government to ensure the appropriate use of such assistance.
                (4) A description of the centralized management and
            coordination among Federal agencies involved in the development
            and implementation of the plan.
                (5) A description of the roles and missions and coordination
            among agencies of the government involved in the development and
            implementation of the plan.
                (6) A description of the resources to be contributed by the
            Department of Defense and the Department of State for the fiscal
            year or years covered by the plan and the manner in which such
            resources will be utilized under the plan.
                (7) For the first fiscal year in which support is to be
            provided under this section, a schedule for establishing a
            riverine counter-drug program that can be sustained by the
            government within five years, and for subsequent fiscal years, a
            description of the progress made in establishing and carrying
            out the program.
                (8) A reporting system to measure the effectiveness of the
            riverine counter-drug program.
                (9) A detailed discussion of how the riverine counter-drug
            program supports the national drug control strategy of the
            United States.

    SEC. 1034. ANNUAL <<NOTE: 21 USC 1505a.>>  REPORT ON DEVELOPMENT AND
                DEPLOYMENT OF NARCOTICS DETECTION TECHNOLOGIES.

        (a) Report Requirement.--Not later than December 1st of each year,
    the Director of the Office of National Drug Control Policy shall submit
    to Congress and the President a report on the development and deployment
    of narcotics detection technologies by Federal agencies. Each such
    report shall be prepared in consultation with the Secretary of Defense,
    the Secretary of State, the Secretary of Transportation, and the
    Secretary of the Treasury.
        (b) Matters To Be Included.--Each report under subsection (a) shall
    include--
                (1) a description of each project implemented by a Federal
            agency relating to the development or deployment of narcotics
            detection technology;
                (2) the agency responsible for each project described in
            paragraph (1);
                (3) the amount of funds obligated or expended to carry out
            each project described in paragraph (1) during the fiscal year
            in which the report is submitted or during any fiscal year
            preceding the fiscal year in which the report is submitted;
                (4) the amount of funds estimated to be obligated or
            expended for each project described in paragraph (1) during any
            fiscal year after the fiscal year in which the report is
            submitted to Congress; and
                (5) a detailed timeline for implementation of each project
            described in paragraph (1).

    [[Page 111 STAT. 1885]]

            Subtitle D--Miscellaneous Report Requirements and Repeals

    SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

        (a) Requirement for Notice of Conversion of Certain Heating Systems
    at Installations in Europe.--Section 2690(b) of title 10, United States
    Code, is amended by striking out ``unless the Secretary--'' and all that
    follows and inserting in lieu
    thereof the following: ``unless the Secretary determines that the
    conversion--
                ``(1) is required by the government of the country in which
            the facility is located; or
                ``(2) is cost-effective over the life cycle of the
            facility.''.

        (b) Report on Availability of Suitable Alternative
    Housing.--Section 2823 of title 10, United States Code, is
    amended--
                (1) by striking out subsection (b); and
                (2) by redesignating subsections (c) and (d) as subsections
            (b) and (c), respectively.

        (c) Report on Stretchout of Major Defense Acquisition Programs.--
    Section 117 of the National Defense Authorization Act, Fiscal Year 1989
    (Public Law 100-456; 102 Stat. 1933; 10 U.S.C. 2431 note), is repealed.
        (d) Elimination of Requirement for Quarterly Report Concerning
    Travel Funding for Chemical Demilitarization Citizens' Advisory
    Commissioners.--(1) Section 1412(g) of the National Defense
    Authorization Act for Fiscal Year 1986 (50 U.S.C. 1521(g)) is amended--
                (A) by striking out paragraph (3);
                (B) by striking out the last sentence of paragraph (4); and
                (C) by redesignating paragraph (4) (as so amended) as
            paragraph (3).

        (2) Section 153(b) of the National Defense Authorization Act for
    Fiscal Year 1996 (50 U.S.C. 1521 note) <<NOTE: 50 USC 1521.>>  is
    amended--
                (A) by striking out ``Quarterly'' in the heading; and
                (B) by striking out paragraphs (4) and (5).

    SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

        Not later than six months after the date of the enactment of this
    Act, the Secretary of Defense, in consultation with the Secretary of
    Agriculture, shall submit to Congress a report evaluating the
    feasibility of transferring jurisdiction over units of the Modular
    Airborne Fire Fighting System from the Department of Agriculture to the
    Department of Defense.

    SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

        (a) Findings.--Congress makes the following findings:
                (1) United States military forces have been withdrawn from
            the Philippines.
                (2) United States military forces are to be withdrawn from
            Panama by 2000.
                (3) There continues to be local opposition to the continued
            presence of United States military forces in Okinawa.

    [[Page 111 STAT. 1886]]

                (4) The Quadrennial Defense Review lists ``the loss of U.S.
            access to critical facilities and lines of communication in key
            regions'' as one of the so-called ``wild card'' scenarios
            covered in the review.
                (5) The National Defense Panel states that ``U.S. forces'
            long-term access to forward bases, to include air bases, ports,
            and logistics facilities, cannot be assumed''.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the President should develop alternatives to the current
            arrangement for forward basing of the Armed Forces outside the
            United States, including alternatives to the existing
            infrastructure for forward basing of forces and alternatives to
            the existing international agreements that provide for basing of
            United States forces in foreign countries; and
                (2) because the Pacific Rim continues to emerge as a region
            of significant economic and military importance to the United
            States, a continued presence of the Armed Forces in that region
            is vital to the capability of the United States to timely
            protect its interests in the region.

        (c) Report Required.--Not later than March 31, 1998, the Secretary
    of Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on National Security of the House of Representatives a
    report on the overseas infrastructure requirements of the Armed Forces.
        (d) Content.--The report shall contain the following:
                (1) The quantity and types of forces that the United States
            must station in each region of the world in order to support the
            current national military strategy of the United States.
                (2) The quantity and types of forces that the United States
            will need to station in each region of the world in order to
            meet the expected or potential future threats to the national
            security interests of the United States.
                (3) The requirements for access to, and use of, air space
            and ground maneuver areas in each such region for training for
            the quantity and types of forces identified for the region
            pursuant to paragraphs (1) and (2).
                (4) A list of the international agreements, currently in
            force, that the United States has entered into with foreign
            countries regarding the basing of United States forces in those
            countries and the dates on which the agreements expire.
                (5) A discussion of any anticipated political opposition or
            other opposition to the renewal of any of those international
            agreements.
                (6) A discussion of future overseas basing requirements for
            United States forces, taking into account expected changes in
            national security strategy, national security environment, and
            weapons systems.
                (7) The expected costs of maintaining the overseas
            infrastructure for foreign based forces of the United States,
            including the costs of constructing any new facilities that will
            be necessary overseas to meet emerging requirements relating to
            the national security interests of the United States.

        (e) Form of Report.--The report may be submitted in a classified or
    unclassified form.

    [[Page 111 STAT. 1887]]

    SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE
                GENERAL ACCOUNTING OFFICE.

        Section 719(b) of title 31, United States Code, is amended by adding
    at the end the following:
        ``(3) The report under subsection (a) shall also include a statement
    of the staff hours and estimated cost of work performed on audits,
    evaluations, investigations, and related work during each of the three
    fiscal years preceding the fiscal year in which the report is submitted,
    stated separately for each division of the General Accounting Office by
    category as follows:
                ``(A) A category for work requested by the chairman of a
            committee of Congress, the chairman of a subcommittee of such a
            committee, or any other Member of Congress.
                ``(B) A category for work required by law to be performed by
            the Comptroller General.
                ``(C) A category for work initiated by the Comptroller
            General in the performance of the Comptroller General's general
            responsibilities.''.

    SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

        (a) Actions Required.--The Secretary of the Defense shall--
                (1) conduct a study of eye safety at small arms firing
            ranges of the Armed Forces; and
                (2) develop for the use of the Armed Forces a protocol for
            reporting eye injuries incurred in small arms firing activities
            at the ranges.

        (b) Agency Tasking.--The Secretary may delegate authority to carry
    out the responsibilities set forth in subsection (a) to the United
    States Army Center for Health Promotion and Preventive Medicine or any
    other element of the Department of Defense that the Secretary considers
    well qualified to carry out those responsibilities.
        (c) Content of Study.--The study under subsection (a)(1) shall
    include the following:
                (1) An evaluation of the existing policies, procedures, and
            practices of the Armed Forces regarding medical surveillance of
            eye injuries resulting from weapons fire at the small arms
            ranges.
                (2) An examination of the existing policies, procedures, and
            practices of the Armed Forces regarding reporting on vision
            safety issues resulting from weapons fire at the small arms
            ranges.
                (3) Determination of rates of eye injuries, and trends in
            eye injuries, resulting from weapons fire at the small arms
            ranges.
                (4) An evaluation of the costs and benefits of a requirement
            for use of eye protection devices by all personnel firing small
            arms at the ranges.

        (d) Report.--The Secretary shall submit a report on the activities
    required under this section to the Committees on Armed Services and on
    Veterans' Affairs of the Senate and the Committees on National Security
    and on Veterans' Affairs of the House of Representatives. The report
    shall include--
                (1) the findings resulting from the study under paragraph
            (1) of subsection (a); and
                (2) the protocol developed under paragraph (2) of such
            subsection.

    [[Page 111 STAT. 1888]]

        (e) Schedule.--(1) The Secretary shall ensure that the study is
    commenced not later than January 1, 1998, and is completed not later
    than six months after the date on which it is commenced.
        (2) The Secretary shall submit the report required under subsection
    (d) not later than 30 days after the completion of the study.

    SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR INVESTIGATING
                MILITARY AVIATION ACCIDENTS AND FOR NOTIFYING AND ASSISTING
                FAMILIES OF VICTIMS.

        (a) Report on Aviation Accident Investigation Procedures.--Not later
    than February 1, 1998, the Secretary of Defense shall submit to Congress
    a report on the advisability of establishing a process for investigating
    Department of Defense aviation accidents that combines accident
    investigation with safety investigation into a single, public
    investigation process, similar to the accident investigation process of
    the National Transportation Safety Board. The report shall include a
    discussion of the advantages and disadvantages of adopting such an
    investigation process.
        (b) Report on Family Assistance.--Not later than April 2, 1998, the
    Secretary of Defense shall submit to Congress a report on assistance
    provided by the Department of Defense to families of casualties among
    military and civilian personnel of the department in the case of
    aviation accidents involving such personnel. The report shall include--
                (1) a discussion of the adequacy and effectiveness of the
            family notification procedures of the Department of Defense,
            including the procedures of the military departments; and
                (2) a description of the assistance provided to members of
            the families of such personnel.

        (c) Report by Department of Defense Inspector General.--Not later
    than December 1, 1997, the Inspector General of the Department of
    Defense shall review the procedures of the Federal Aviation
    Administration and the National Transportation Safety Board for
    providing information and assistance to members of families of
    casualties of nonmilitary aviation accidents and shall submit to
    Congress a report on the review. The report shall include a discussion
    of the following:
                (1) Designation of an experienced non-profit organization to
            provide assistance in meeting the needs of families of accident
            casualties.
                (2) An assessment of the system and procedures for
            providing families with information on accidents and accident
            investigations.
                (3) Protection of members of families from unwanted
            solicitations relating to the accident.
                (4) A recommendation regarding whether the procedures
            reviewed (including the matters discussed under paragraphs (1),
            (2), and (3)) or similar procedures should be adopted by the
            Department of Defense for use by the Department in providing
            information and assistance to members of families of casualties
            of military aviation accidents and, if the recommendation is not
            to adopt such procedures, a detailed justification for the
            recommendation.

        (d) Unclassified Form of Reports.--The reports under this section
    shall be submitted in unclassified form.

    [[Page 111 STAT. 1889]]

                    Subtitle E--Matters Relating to Terrorism

    SEC. 1051. OVERSIGHT <<NOTE: 31 USC 1113 note.>>  OF COUNTERTERRORISM
                AND ANTITERRORISM ACTIVITIES; REPORT.

        (a) Oversight of Counterterrorism and Antiterrorism Activities.--Not
    later than 120 days after the date of the enactment of this Act, the
    Director of the Office of Management and Budget shall--
                (1) establish a reporting system for executive agencies with
            respect to the budget and expenditure of funds by such agencies
            for the purpose of carrying out counterterrorism and
            antiterrorism programs and activities; and
                (2) using such reporting system, collect information on--
                        (A) the budget and expenditure of funds by executive
                    agencies during the current fiscal year for purposes of
                    carrying out counterterrorism and antiterrorism programs
                    and activities; and
                        (B) the specific programs and activities for which
                    such funds were expended.

        (b) Report.--Not <<NOTE: President.>>  later that March 1 of each
    year, the President shall submit to Congress a report in classified and
    unclassified form (using the information described in subsection (a)(2))
    describing, for each executive agency and for the executive branch as a
    whole, the following:
                (1) The amounts proposed to be expended for counterterrorism
            and antiterrorism programs and activities for the fiscal year
            beginning in the calendar year in which the report is submitted.
                (2) The amounts proposed to be expended for counterterrorism
            and antiterrorism programs and activities for the fiscal year in
            which the report is submitted and the amounts that have already
            been expended for such programs and activities for that fiscal
            year.
                (3) The specific counterterrorism and antiterrorism programs
            and activities being implemented, any priorities with respect to
            such programs and activities, and whether there has been any
            duplication of efforts in implementing such programs and
            activities.

    SEC. 1052. PROVISION <<NOTE: 10 USC 113 note.>>  OF ADEQUATE TROOP
                PROTECTION EQUIPMENT FOR ARMED FORCES PERSONNEL ENGAGED IN
                PEACE OPERATIONS; REPORT ON ANTITERRORISM ACTIVITIES AND
                PROTECTION OF PERSONNEL.

        (a) Protection of Personnel.--The Secretary of Defense shall take
    appropriate actions to ensure that units of the Armed Forces engaged in
    a peace operation are provided adequate troop protection equipment for
    that operation.
        (b) Specific Actions.--In taking actions under subsection (a), the
    Secretary shall--
                (1) identify the additional troop protection equipment, if
            any, required to equip a division (or the equivalent of a
            division) with adequate troop protection equipment for peace
            operations; and
                (2) establish <<NOTE: Regulations.>>  procedures to
            facilitate the exchange or transfer of troop protection
            equipment among units of the Armed Forces.

    [[Page 111 STAT. 1890]]

        (c) Designation of Responsible Official.--The Secretary of Defense
    shall designate an official within the Department of Defense to be
    responsible for--
                (1) ensuring the appropriate allocation of troop protection
            equipment among the units of the Armed Forces engaged in peace
            operations; and
                (2) monitoring the availability, status or condition, and
            location of such equipment.

        (d) Troop Protection Equipment Defined.--In this section, the term
    ``troop protection equipment'' means the equipment required by units of
    the Armed Forces to defend against any hostile threat that is likely
    during a peace operation, including an attack by a hostile crowd, small
    arms fire, mines, and a terrorist bombing attack.
        (e) Report on Antiterrorism Activities of the Department of Defense
    and Protection of Personnel.--Not later than 120 days after the date of
    the enactment of this Act, the Secretary of Defense shall submit to
    Congress a report, in classified and unclassified form, on antiterrorism
    activities of the Department of Defense and the actions taken by the
    Secretary under subsections (a), (b), and (c). The report shall include
    the following:
                (1) A description of the programs designed to carry out
            antiterrorism activities of the Department of Defense, any
            deficiencies in those programs, and any actions taken by the
            Secretary to improve implementation of such programs.
                (2) An assessment of the current policies and practices of
            the Department of Defense with respect to the protection of
            members of the Armed Forces overseas against terrorist attack,
            including any modifications to such policies or practices that
            are proposed or implemented as a result of the assessment.
                (3) An assessment of the procedures of the Department of
            Defense for determining accountability, if any, in the command
            structure of the Armed Forces in instances in which a terrorist
            attack results in the loss of life at an overseas military
            installation or facility.
                (4) A detailed description of the roles of the Office of the
            Secretary of Defense, the Chairman of the Joint Chiefs of Staff,
            the Secretaries of the military departments, and the combatant
            commanders in providing guidance and support with respect to the
            protection of members of the Armed Forces deployed overseas
            against terrorist attack (both before and after the November
            1995 bombing in Riyadh, Saudi Arabia) and how these roles have
            changed since the June 25, 1996, terrorist bombing at Khobar
            Towers in Dhahran, Saudi Arabia.
                (5) A description of the actions taken by the Secretary of
            Defense under subsections (a), (b), and (c) to provide adequate
            troop protection equipment for units of the Armed Forces engaged
            in a peace operation.

    [[Page 111 STAT. 1891]]

                Subtitle F--Matters Relating to Defense Property

    SEC. 1061. LEASE OF NON-EXCESS PERSONAL PROPERTY OF MILITARY
                DEPARTMENTS.

        (a) Receipt of Fair Market Value.--Subsection (b)(4) of section 2667
    of title 10, United States Code, is amended by striking out ``, in the
    case of the lease of real property,''.
        (b) Competitive Selection.--Such section is further
    amended--
                (1) by redesignating subsection (g) as subsection (h); and
                (2) by inserting after subsection (f) the following new
            subsection:

        ``(g)(1) If a proposed lease under subsection (a) involves only
    personal property, the lease term exceeds one year, and the fair market
    value of the lease interest exceeds $100,000, as determined by the
    Secretary concerned, the Secretary shall use competitive procedures to
    select the lessee.
        ``(2) Not <<NOTE: Notice.>>  later than 45 days before entering into
    a lease described in paragraph (1), the Secretary concerned shall submit
    to Congress written notice describing the terms of the proposed lease
    and the competitive procedures used to select the lessee.''.

        (c) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 2667. Leases: non-excess property of military departments''.

        (2) The table of sections at the beginning of chapter 159 of title
    10, United States Code, is amended by striking out the item relating to
    section 2667 and inserting in lieu thereof the following new item:

    ``2667. Leases: non-excess property of military departments.''.

        (d) Conforming Amendment.--Section 2490a(f)(2) of title 10, United
    States Code, is amended by striking out ``section 2667(g)'' and
    inserting in lieu thereof ``section 2667(h)''.

    SEC. 1062. LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.

        (a) Lease Authority.--Chapter 159 of title 10, United States Code,
    is amended by inserting after section 2667 the following new section:

    ``Sec. 2667a. Leases: non-excess property of Defense agencies

        ``(a) Lease Authority.--Whenever the Secretary of Defense considers
    it advantageous to the United States, the Secretary may lease to such
    lessee and upon such terms as the Secretary considers will promote the
    national defense or to be in the public interest, personal property that
    is--
                ``(1) under the control of a Defense agency;
                ``(2) not for the time needed for public use; and
                ``(3) not excess property, as defined by section 3 of the
            Federal Property and Administrative Services Act of 1949 (40
            U.S.C. 472).

        ``(b) Limitation, Terms, and Conditions.--A lease under subsection
    (a)--

    [[Page 111 STAT. 1892]]

                ``(1) may not be for more than five years unless the
            Secretary of Defense determines that a lease for a longer period
            will promote the national defense or be in the public interest;
                ``(2) may give the lessee the first right to buy the
            property if the lease is revoked to allow the United States to
            sell the property under any other provision of law;
                ``(3) shall permit the Secretary to revoke the lease at any
            time, unless the Secretary determines that the omission of such
            a provision will promote the national defense or be in the
            public interest;
                ``(4) shall provide for the payment (in cash or in kind) by
            the lessee of consideration in an amount that is not less than
            the fair market value of the lease interest, as determined by
            the Secretary; and
                ``(5) may provide, notwithstanding any other provision of
            law, for the improvement, maintenance, protection, repair,
            restoration, or replacement by the lessee, of the property
            leased as the payment of part or all of the consideration for
            the lease.

        ``(c) Competitive Selection.--(1) If the term of a proposed lease
    under subsection (a) exceeds one year and the fair market value of the
    lease interest exceeds $100,000, as determined by the Secretary of
    Defense, the Secretary shall use competitive procedures to select the
    lessee.
        ``(2) Not later <<NOTE: Notice.>>  than 45 days before entering into
    a lease described in paragraph (1), the Secretary shall submit to
    Congress a written notice describing the terms of the proposed lease and
    the competitive procedures used to select the lessee.

        ``(d) Disposition of Money Rent.--Money rentals received pursuant to
    a lease entered into by the Secretary of Defense under subsection (a)
    shall be deposited in a special account in the Treasury established for
    the Defense agency whose property is subject to the lease. Amounts in a
    Defense agency's special account shall be available, to the extent
    provided in appropriations Acts, solely for the maintenance, repair,
    restoration, or replacement of the leased property.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2667 the following new item:

    ``2667a. Leases: non-excess property of Defense agencies.''.

    SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR
                DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.

        (a) Authority To Donate.--Chapter 153 of title 10, United States
    Code, is amended by adding at the end the following new section:

    ``Sec. 2580. Donation of excess chapel property

        ``(a) Authority To Donate.--The Secretary of a military department
    may donate personal property specified in subsection (b) to an
    organization described in section 501(c)(3) of the Internal Revenue Code
    of 1986 that is a religious organization in order to assist the
    organization in restoring or replacing property of the organization that
    has been damaged or destroyed as a result of an act of arson or
    terrorism, as determined pursuant to procedures prescribed by the
    Secretary of Defense.

    [[Page 111 STAT. 1893]]

        ``(b) Property Covered.--(1) The property authorized to be donated
    under subsection (a) is furniture and other personal property that--
                ``(A) is in, or was formerly in, a chapel under the
            jurisdiction of the Secretary of a military department and
            closed or being closed; and
                ``(B) is determined by the Secretary to be excess to the
            requirements of the armed forces.

        ``(2) No real property may be donated under this section.
        ``(c) Donees Not To Be Charged.--No charge may be imposed by the
    Secretary of a military department on a donee of property under this
    section in connection with the donation. However, the donee shall agree
    to defray any expense for shipping or other transportation of property
    donated under this section from the location of the property when
    donated to any other location.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2580. Donation of excess chapel property.''.

    SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF
                ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE IN
                CENTRAL EUROPE.

        (a) General Authorities.--The Secretary of Defense, pursuant to an
    amendment or amendments to the European air defense agreements, may
    dispose of any defense articles owned by the United States and acquired
    to carry out such agreements by providing such articles to the Federal
    Republic of Germany. In carrying out such disposal, the Secretary--
                (1) may provide without monetary charge to the Federal
            Republic of Germany articles specified in the agreements; and
                (2) may accept from the Federal Republic of Germany (in
            exchange for the articles provided under paragraph (1))
            articles, services, or any other consideration, as determined
            appropriate by the Secretary.

        (b) Definition of European Air Defense Agreements.--For the purposes
    of this section, the term ``European air defense agreements'' means--
                (1) the agreement entitled ``Agreement between the Secretary
            of Defense of the United States of America and the Minister of
            Defense of the Federal Republic of Germany on Cooperative
            Measures for Enhancing Air Defense for Central Europe'', signed
            on December 6, 1983; and
                (2) the agreement entitled ``Agreement between the Secretary
            of Defense of the United States of America and the Minister of
            Defense of the Federal Republic of Germany in implementation of
            the 6 December 1983 Agreement on Cooperative Measures for
            Enhancing Air Defense for Central Europe'', signed on July 12,
            1984.

    SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND
                AMMUNITION COMPONENTS.

        (a) Authority.--(1) Chapter 443 of title 10, United States Code, is
    amended by adding at the end the following new section:

    [[Page 111 STAT. 1894]]

    ``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and
                            ammunition components

        ``(a) Authority To Sell Outside DoD.--The Secretary of the Army may
    sell to an eligible purchaser described in subsection (c) ammunition or
    ammunition components that are excess, obsolete, or unserviceable and
    have not been demilitarized if--
                ``(1) the purchaser enters into an agreement, in advance,
            with the Secretary--
                        ``(A) to demilitarize the ammunition or components;
                    and
                        ``(B) to reclaim, recycle, or reuse the component
                    parts or materials; or
                ``(2) the Secretary, or an official of the Department of the
            Army designated by the Secretary, approves the use of the
            ammunition or components proposed by the purchaser as being
            consistent with the public interest.

        ``(b) Method of Sale.--The Secretary shall use competitive
    procedures to sell ammunition and ammunition components under this
    section, except that the Secretary may use procedures other than
    competitive procedures in any case in which the Secretary determines
    that there is only one potential buyer of the items being offered for
    sale.
        ``(c) Eligible Purchasers.--To be eligible to purchase excess,
    obsolete, or unserviceable ammunition or ammunition components under
    this section, the purchaser shall be a licensed manufacturer (as defined
    in section 921(10) of title 18) that, as determined by the Secretary,
    has a capability to modify, reclaim, transport, and either store or sell
    the ammunition or ammunition components sought to be purchased.
        ``(d) Hold Harmless Agreement.--The Secretary shall require a
    purchaser of ammunition or ammunition components under this section to
    agree to hold harmless and indemnify the United States from any claim
    for damages for death, injury, or other loss resulting from a use of the
    ammunition or ammunition components, except in a case of willful
    misconduct or gross negligence of a representative of the United States.
        ``(e) Verification <<NOTE: Regulations.>>  of Demilitarization.--The
    Secretary shall establish procedures for ensuring that a purchaser of
    ammunition or ammunition components under this section demilitarizes the
    ammunition or ammunition components in accordance with any agreement to
    do so under subsection (a)(1). The procedures shall include onsite
    verification of demilitarization activities.

        ``(f) Consideration.--The Secretary may accept ammunition,
    ammunition components, or ammunition demilitarization services as
    consideration for ammunition or ammunition components sold under this
    section. The fair market value of any such consideration shall be equal
    to or exceed the fair market value or, if higher, the sale price of the
    ammunition or ammunition components sold.
        ``(g) Relationship to Arms Export Control Act.--Nothing in this
    section shall be construed to affect the applicability of section 38 of
    the Arms Export Control Act (22 U.S.C. 2778) to sales of ammunition or
    ammunition components on the United States Munitions List.
        ``(h) Definitions.--In this section:
                ``(1) The term `excess, obsolete, or unserviceable', with
            respect to ammunition or ammunition components, means that

    [[Page 111 STAT. 1895]]

            the ammunition or ammunition components are no longer necessary
            for war reserves or for support of training of the Army or
            production of ammunition or ammunition components.
                ``(2) The term `demilitarize', with respect to ammunition or
            ammunition components--
                        ``(A) means to destroy the military offensive or
                    defensive advantages inherent in the ammunition or
                    ammunition components; and
                        ``(B) includes any mutilation, scrapping, melting,
                    burning, or alteration that prevents the use of the
                    ammunition or ammunition components for the military
                    purposes for which the ammunition or ammunition
                    components was designed or for a lethal purpose.''.

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

    ``4687. Sale of excess, obsolete, or unserviceable ammunition and
               ammunition components.''.

        (b) Review <<NOTE: 10 USC 4687 note.>>  of Initial Sales.--(1) For
    each of the first three fiscal years during which the Secretary of the
    Army sells ammunition or ammunition components under the authority of
    section 4687 of title 10, United States Code, as added by subsection
    (a), the Director of the Army Audit Agency shall conduct a review of
    sales under such section to ensure that--
                (A) purchasers that enter into an agreement under subsection
            (a)(1) of such section to demilitarize the purchased ammunition
            or ammunition components fully comply with the agreement; and
                (B) purchasers that are authorized under subsection (a)(2)
            of such section to use the purchased ammunition or ammunition
            components actually use the ammunition or ammunition components
            in the manner proposed.

        (2) Not <<NOTE: Reports.>>  later than 180 days after the end of
    each fiscal year in which the review is conducted, the Secretary of the
    Army shall submit to Congress a report containing the results of the
    review for the fiscal year covered by the report.

    SEC. 1066. TRANSFER <<NOTE: California.>>  OF B-17 AIRCRAFT TO MUSEUM.

        (a) Authority.--The Secretary of the Air Force may convey, without
    consideration to the Planes of Fame Museum, Chino, California (in this
    section referred to as the ``museum''), all right, title, and interest
    of the United States in and to the B-17 aircraft known as the
    ``Picadilly Lilly'', an aircraft that has been in the possession of the
    museum since 1959. Such a 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 museum 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 Transfer of Ownership or Possession.--The
    Secretary shall include in the instrument of conveyance of the
    aircraft--

    [[Page 111 STAT. 1896]]

                (1) a condition that the museum not convey any ownership
            interest in, or transfer possession of, the aircraft to any
            other party without the prior approval of the Secretary of the
            Air Force; and
                (2) a condition that if the Secretary of the Air Force
            determines at any time that the museum has conveyed an ownership
            interest in, or transferred possession of, the aircraft to any
            other party without the prior approval of the Secretary, 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
    authorized by this section shall be made at no cost to the United
    States. Any costs associated with such conveyance, including costs of
    determining compliance with subsection (b), shall be borne by the
    museum.
        (e) Additional Terms and Conditions.--The Secretary of the Air Force
    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 conveyance of ownership of the B-17 aircraft specified in
    subsection (a) to the museum, 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.

    SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

        (a) Report Required.--Not later than January 31, 1998, the Secretary
    of Defense shall submit to Congress a report on the actions that have
    been taken or are planned to be taken within the Department of Defense
    to address problems with the sale or other disposal of materials that
    are excess or surplus to the needs of the Department of Defense.
        (b) Required Content.--At a minimum, the report shall address the
    following issues:
                (1) The effort to standardize the coding of military
            equipment for demilitarization at all stages of the process,
            from initial acquisition through disposal.
                (2) The changes underway to improve the methods used for the
            demilitarization of military equipment.
                (3) Recent efforts to improve the accuracy of coding
            performed by Government employees and contractor employees.
                (4) Recent efforts to improve the enforcement of the
            penalties that are applicable to Government employees and
            contractor employees who fail to comply with rules or procedures
            applicable to the demilitarization of military equipment.
                (5) The methods of oversight and enforcement used by the
            Department of Defense to review the demilitarization of military
            equipment by the purchasers of the equipment.
                (6) The current and planned controls designed to prevent the
            inappropriate transfer of excess military equipment outside the
            United States.
                (7) The current procedures used by the Department, including
            repurchase, to recover military equipment that is sold or

    [[Page 111 STAT. 1897]]

            otherwise disposed of without appropriate action having been
            taken to demilitarize the equipment or to provide for
            demilitarization of the equipment.
                (8) The legislative changes, if any, that would be necessary
            to improve the recovery rate under the procedures identified
            under paragraph (7).

        (c) Identification of Frequent Errors and Misuse.--Based on fiscal
    year 1997 findings, the Secretary of Defense shall identify in the
    report--
                (1) the 50 categories of military equipment that most
            frequently received an erroneous demilitarization code; and
                (2) the categories of military equipment that are
            particularly vulnerable to improper use after disposal.

                            Subtitle G--Other Matters

    SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL
                INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE ARRESTS.

        (a) Authority.--Chapter 81 of title 10, United States Code, is
    amended by inserting after section 1585 the following new section:

    ``Sec. 1585a. Special agents of the Defense Criminal Investigative
                            Service: authority to execute warrants and make
                            arrests

        ``(a) Authority.--The Secretary of Defense may authorize any DCIS
    special agent described in subsection (b)--
                ``(1) to execute and serve any warrant or other process
            issued under the authority of the United States; and
                ``(2) to make arrests without a warrant--
                        ``(A) for any offense against the United States
                    committed in the presence of that agent; and
                        ``(B) for any felony cognizable under the laws of
                    the United States if the agent has probable cause to
                    believe that the person to be arrested has committed or
                    is committing the felony.

        ``(b) Agents To <<NOTE: Applicability.>>  Have Authority.--
    Subsection (a) applies to any DCIS special agent whose duties include
    conducting, supervising, or coordinating investigations of criminal
    activity in programs and operations of the Department of Defense.

        ``(c) Guidelines on Exercise of Authority.--The authority provided
    under subsection (a) shall be exercised in accordance with guidelines
    prescribed by the Inspector General of the Department of Defense and
    approved by the Attorney General and any other applicable guidelines
    prescribed by the Secretary of Defense or the Attorney General.
        ``(d) DCIS Special Agent Defined.--In this section, the term `DCIS
    special agent' means an employee of the Department of Defense who is a
    special agent of the Defense Criminal Investigative Service (or any
    successor to that service).''.

    [[Page 111 STAT. 1898]]

        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1585 the following new item:

    ``1585a. Special agents of the Defense Criminal Investigative Service:
               authority to execute warrants and make arrests.''.

    SEC. 1072. STUDY <<NOTE: 10 USC 113 note.>>  OF INVESTIGATIVE PRACTICES
                OF MILITARY CRIMINAL INVESTIGATIVE ORGANIZATIONS RELATING TO
                SEX CRIMES.

        (a) Independent Study Required.--(1) The Secretary of Defense shall
    provide for an independent study of the policies, procedures, and
    practices of the military criminal investigative organizations for the
    conduct of investigations of complaints of sex crimes and other criminal
    sexual misconduct arising in the Armed Forces.
        (2) The Secretary shall provide for the study to be conducted by the
    National Academy of Public Administration. The amount of a contract for
    the study may not exceed $2,000,000.
        (3) The Secretary shall require that all components of the
    Department of Defense cooperate fully with the organization carrying out
    the study.
        (b) Matters To Be Included in Study.--The Secretary shall require
    that the organization conducting the study under this section
    specifically consider each of the following matters:
                (1) The need (if any) for greater organizational
            independence and autonomy for the military criminal
            investigative organizations than exists under current chain-of-
            command structures within the military departments.
                (2) The authority of each of the military criminal
            investigative organizations to investigate allegations of sex
            crimes and other criminal sexual misconduct and the policies of
            those organizations for carrying out such investigations.
                (3) The training (including training in skills and
            techniques related to the conduct of interviews) provided by
            each of those organizations to agents or prospective agents
            responsible for conducting or providing support to
            investigations of alleged sex crimes and other criminal sexual
            misconduct, including--
                        (A) the extent to which that training is comparable
                    to the training provided by the Federal Bureau of
                    Investigation and other civilian law enforcement
                    agencies; and
                        (B) the coordination of training and investigative
                    policies related to alleged sex crimes and other
                    criminal sexual misconduct of each of those
                    organizations with the Federal Bureau of Investigation
                    and other civilian Federal law enforcement agencies.
                (4) The procedures and relevant professional standards of
            each military criminal investigative organization with regard to
            recruitment and hiring of agents, including an evaluation of the
            extent to which those procedures and standards provide for--
                        (A) sufficient screening of prospective agents based
                    on background investigations; and
                        (B) obtaining sufficient information about the
                    qualifications and relevant experience of prospective
                    agents.
                (5) The advantages and disadvantages of establishing, within
            each of the military criminal investigative organizations or
            within the Defense Criminal Investigative Service only, a

    [[Page 111 STAT. 1899]]

            special unit for the investigation of alleged sex crimes and
            other criminal sexual misconduct.
                (6) The clarity of guidance for, and consistency of
            investigative tactics used by, each of the military criminal
            investigative organizations for the investigation of alleged sex
            crimes and other criminal sexual misconduct, together with a
            comparison with the guidance and tactics used by the Federal
            Bureau of Investigation and other civilian law enforcement
            agencies for such investigations.
                (7) The number of allegations of agent misconduct in the
            investigation of sex crimes and other criminal sexual misconduct
            for each of those organizations, together with a comparison with
            the number of such allegations concerning agents of the Federal
            Bureau of Investigation and other civilian law enforcement
            agencies for such investigations.
                (8) The procedures of each of the military criminal
            investigative organizations for administrative identification
            (known as ``titling'') of persons suspected of committing sex
            crimes or other criminal sexual misconduct, together with a
            comparison with the comparable procedures of the Federal Bureau
            of Investigation and other civilian Federal law enforcement
            agencies for such investigations.
                (9) The accuracy, timeliness, and completeness of reporting
            of sex crimes and other criminal sexual misconduct by each of
            the military criminal investigative organizations to the
            National Crime Information Center maintained by the Department
            of Justice.
                (10) Any recommendation for legislation or administrative
            action to revise the organizational or operational arrangements
            of the military criminal investigative organizations or to alter
            recruitment, training, or operational procedures, as they
            pertain to the investigation of sex crimes and other criminal
            sexual misconduct.

        (c) Report.--(1) The Secretary of Defense shall require the
    organization conducting the study under this section to submit to the
    Secretary a report on the study not later than one year after the date
    of the enactment of this Act. The organization shall include in the
    report its findings and conclusions concerning each of the matters
    specified in subsection (b).
        (2) The Secretary shall submit the report under paragraph (1),
    together with the Secretary's comments on the report, to Congress not
    later than 30 days after the date on which the report is submitted to
    the Secretary under paragraph (1).
        (d) Military Criminal Investigative Organization Defined.--For the
    purposes of this section, the term ``military criminal investigative
    organization'' means any of the following:
                (1) The Army Criminal Investigation Command.
                (2) The Naval Criminal Investigative Service.
                (3) The Air Force Office of Special Investigations.
                (4) The Defense Criminal Investigative Service.

        (e) Criminal Sexual Misconduct Defined.--For the purposes of this
    section, the term ``criminal sexual misconduct'' means conduct by a
    member of the Armed Forces involving sexual abuse, sexual harassment, or
    other sexual misconduct that constitutes an offense under the Uniform
    Code of Military Justice.

    [[Page 111 STAT. 1900]]

    SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) The tables of chapters at the beginning of subtitle A,
            and at the beginning of part I of subtitle A, are each amended
            by striking out ``471'' in the item relating to chapter 23 and
            inserting in lieu thereof ``481''.
                (2) The tables of chapters at the beginning of subtitle A,
            and at the beginning of part IV of subtitle A, are each amended
            by striking out ``2540'' in the item relating to chapter 152 and
            inserting in lieu thereof ``2541''.
                (3) Section 116(b)(2) is amended by striking out ``such
            subsection'' and inserting in lieu thereof ``subsection (a)''.
                (4) Section 129c(e)(1) is amended by striking out ``section
            115a(g)(2)'' and inserting in lieu thereof ``section
            115a(e)(2)''.
                (5) Section 193(d)(1) is amended by striking out
            ``performs'' and inserting in lieu thereof ``perform''.
                (6) Section 382(g) is amended by striking out ``the date of
            the enactment of the National Defense Authorization Act for
            Fiscal Year 1997'' and inserting in lieu thereof ``September 23,
            1996''.
                (7) Section 443(b)(1) is amended by striking out the period
            at the end and inserting in lieu thereof a semicolon.
                (8) Section 445 is amended--
                        (A) by striking ``(1)'' before ``Except with'';
                        (B) by redesignating subparagraphs (A), (B), and (C)
                    as paragraphs (1), (2), and (3), respectively;
                        (C) by striking ``(2)'' before ``Whenever it
                    appears'' and inserting ``(b) Injunctive Relief.--'';
                    and
                        (D) by striking out ``paragraph (1)'' and inserting
                    in lieu thereof ``subsection (a)''.
                (9) Section 858b(a)(1) is amended in the first sentence by
            striking out ``forfeiture'' and all that follows through ``due
            that member'' and inserting in lieu thereof ``forfeiture of pay,
            or of pay and allowances, due that member''.
                (10) The item relating to section 895 (article 95) in the
            table of sections at the beginning of subchapter X of chapter 47
            is amended by striking out ``Art.''.
                (11) Section 943(c) is amended--
                        (A) by capitalizing the initial letter of the third
                    word of the subsection heading;
                        (B) in the second sentence, by striking out
                    ``Court'' and inserting in lieu thereof ``court''; and
                        (C) in the third sentence, by striking out ``such
                    positions'' and inserting in lieu thereof ``positions
                    referred to in the preceding sentences''.
                (12) Section 954 is amended by striking out ``this'' and
            inserting in lieu thereof ``his''.
                (13) Section 971(b)(4) is amended by capitalizing the first
            letter of the fifth and sixth words.
                (14) Section 972(b) is amended by striking out ``the date of
            the enactment of the National Defense Authorization Act for
            Fiscal Year 1996'' in the matter preceding paragraph (1) and
            inserting in lieu thereof ``February 10, 1996''.
                (15) Section 976(f) is amended by striking out ``shall,''
            and all that follows and inserting in lieu thereof ``shall be
            fined under title 18 or imprisoned not more than 5 years, or
            both,

    [[Page 111 STAT. 1901]]

            except that, in the case of an organization (as defined in
            section 18 of such title), the fine shall not be less than
            $25,000.''.
                (16) Section 977 is amended--
                        (A) in subsection (c), by striking out ``Beginning
                    on October 1, 1996, not more than'' and inserting in
                    lieu thereof ``Not more than''; and
                        (B) in subsection (d)(2), by striking out ``before
                    October 1, 1996,'' and all that follows through ``so
                    assigned'' the second place it appears.
                (17) Section 1078a(g)(4)(B)(iii)(II) is amended by striking
            out ``section 1447(8)'' and inserting in lieu thereof ``section
            1447(13)''.
                (18) Section 1129(c) is amended--
                        (A) by striking out ``the date of the enactment of
                    this section,'' and inserting in lieu thereof ``November
                    30, 1993,''; and
                        (B) by striking out ``before the date of the
                    enactment of this section or'' and inserting in lieu
                    thereof ``before such date or''.
                (19) Section 1151(b) is amended by capitalizing the first
            letter of the second word in the subsection heading.
                (20) Section 1152(g) is amended by inserting ``(1)'' before
            ``The Secretary may''.
                (21) Section 1143(d) is amended by striking out ``section
            806(a)(2) of the Military Family Act of 1985'' and inserting in
            lieu thereof ``section 1784(a)(2) of this title''.
                (22) Section 1174(a)(1) is amended by striking out ``,
            1177,''.
                (23) Section 1406 is amended--
                        (A) by striking out ``3962(b)'' in footnote number 3
                    in the table in subsection (b)(1) and in footnote number
                    1 in the table in subsection (c)(1) and inserting in
                    lieu thereof ``3962''; and
                        (B) by striking out ``8962(b)'' in footnote number 3
                    in the table in subsection (b)(1) and in footnote number
                    1 in the table in subsection (e)(1) and inserting in
                    lieu thereof ``8962''.
                (24) Section 1408(d) is amended--
                        (A) by decapitalizing the first letter of the fifth
                    word in the subsection heading;
                        (B) by redesignating the second paragraph (6) as
                    paragraph (7); and
                        (C) in paragraph (7), as so redesignated, by
                    striking out ``out-of State'' in subparagraph (A) and
                    inserting in lieu thereof ``out-of-State''.
                (25) Section 1408(g) is amended by decapitalizing the first
            letter of the second and ninth words in the subsection heading.
                (26) Section 1444a(b) is amended by striking out ``section
            1455(c)'' and inserting in lieu thereof ``section 1455(d)(2)''.
                (27) Section 1448 is amended by capitalizing the first
            letter of the third word of the section heading.
                (28) Section 1451(a)(2) is amended by inserting a period in
            the paragraph heading before the one-em dash.
                (29) Section 1452 is amended--
                        (A) in subsection (a)(1)(A), by striking out
                    ``providing'' in the matter preceding clause (i) and
                    inserting in lieu thereof ``provided''; and

    [[Page 111 STAT. 1902]]

                        (B) in subsection (e), by striking out ``section
                    8339(i)'' and ``section 8331(b)'' and inserting in lieu
                    thereof ``section 8339(j)'' and ``section 8341(b)'',
                    respectively.
                (30) Section 1504(i)(1) is amended by striking out ``this
            subsection'' and inserting in lieu thereof ``this section''.
                (31) Section 1599c(c)(1)(F) is amended by striking out
            ``Sections 106(f)'' and inserting in lieu thereof ``Sections
            106(e)''.
                (32) Section 1613(a) is amended by striking out ``1604'' and
            inserting in lieu thereof ``1603''.
                (33) Section 1763 is amended--
                        (A) by striking out ``On and after October 1, 1993,
                    the Secretary of Defense'' and inserting in lieu thereof
                    ``The Secretary of Defense''; and
                        (B) by striking out ``secretaries'' and inserting in
                    lieu thereof ``Secretaries''.
                (34) Section 1792 is amended--
                        (A) in subsection (a)(1), by striking out the comma
                    after ``implementing''; and
                        (B) in subsection (d)(2), by striking out ``section
                    1794'' and inserting in lieu thereof ``section 1784''.
                (35) Section 2010(e) is repealed.
                (36) Section 2107a(g) is amended by inserting ``the'' after
            ``August 1, 1979, as a member of''.
                (37) Section 2109(c)(1)(A) is amended by striking out
            ``section 2106(b)(6)'' and inserting in lieu thereof ``section
            2104(b)(6)''.
                (38) Section 2114(h) is amended by striking out ``section
            2123(e)(1)'' and inserting in lieu thereof ``section 2123(e)''.
                (39) Section 2198(c) is amended by striking out ``identified
            in'' and all that follows through the period at the end and
            inserting in lieu thereof ``that is identified under section
            2505 of this title as critical for attaining the national
            security objectives set forth in section 2501(a) of this
            title.''.
                (40) Section 2249a(a)(1) is amended by striking out ``50
            App. 2405(j)'' and inserting in lieu thereof ``50 U.S.C. App.
            2405(j)(1)(A)''.
                (41) Section 2302d(a)(2) is amended by striking out
            ``procurement of'' and inserting in lieu thereof ``procurement
            for the system is estimated to be''.
                (42) Section 2304(c)(5) is amended by striking out
            ``subsection (j)'' and inserting in lieu thereof ``subsection
            (k)''.
                (43) Section 2304(f) is amended--
                        (A) in paragraph (1)(B)(iii), by striking out
                    ``(6)(C)'' and inserting in lieu thereof ``(6)(B)''; and
                        (B) in paragraph (6)--
                              (i) by striking out subparagraph (B); and
                              (ii) by redesignating subparagraph (C) as
                          subparagraph (B) and in that subparagraph by
                          striking out ``paragraph (1)(B)(iv)'' and
                          inserting in lieu thereof ``paragraph
                          (1)(B)(iii)''.
                (44) Section 2305a(a) is amended by striking out ``(41
            U.S.C.'' and inserting in lieu thereof ``(40 U.S.C.''.
                (45) Section 2306(h) is amended by inserting ``for the
            purchase of property'' after ``Multiyear contracting
            authority''.
                (46) Section 2306a(a)(5) is amended by striking out
            ``subsection (b)(1)(B)'' and inserting in lieu thereof
            ``subsection (b)(1)(C)''.

    [[Page 111 STAT. 1903]]

                (47) Section 2306b is amended by striking out ``this
            subsection'' in the first sentence of subsection (k) and
            inserting in lieu thereof ``this section''.
                (48)(A) The heading of section 2306b is amended to read as
            follows:

    ``Sec. 2306b. Multiyear contracts: acquisition of property''.

                (B) The item relating to such section in the table of
            sections at the beginning of chapter 137 is amended to read as
            follows:

    ``2306b. Multiyear contracts: acquisition of property.''.

                (49) Section 2315(a) is amended by striking out ``the
            Information Technology Management Reform Act of 1996'' and
            inserting in lieu thereof ``division E of the Clinger-Cohen Act
            of 1996 (40 U.S.C. 1401 et seq.)''.
                (50) Section 2371a is amended by inserting ``Defense''
            before ``Advanced Research Projects Agency''.
                (51) Section 2375(c) is amended--
                        (A) by striking out ``provisions relating to
                    exceptions'' and inserting in lieu thereof ``a provision
                    relating to an exception''; and
                        (B) by striking out ``section 2306a(d)'' and
                    inserting in lieu thereof ``section 2306a(b)''.
                (52) Section 2401a(a) is amended by striking out ``leasing
            of such vehicles'' and inserting in lieu thereof ``such
            leasing''.
                (53) Section 2491(8) is amended by striking out ``that
            appears'' and all that follows through the period at the end and
            inserting in lieu thereof ``that is identified under section
            2505 of this title as critical for attaining the national
            security objectives set forth in section 2501(a) of this
            title.''.
                (54) Section 2533(a) is amended by striking out the first
            closing parenthesis after ``41 U.S.C. 10a''.
                (55) Section 2534(b)(3) is amended by striking out
            ``(a)(3)(A)(ii)'' and inserting in lieu thereof
            ``(a)(3)(A)(iii)''.
                (56) Section 2554(c)(1) is amended by striking out ``the
            date of the enactment of this Act'' and inserting in lieu
            thereof ``September 23, 1996''.
                (57) Section 2645(a)(1)(B) is amended by striking out ``on
            which'' after ``the date on which''.
                (58) Section 2684(b) is amended by striking out ``, United
            States Code,''.
                (59) Section 2694(b)(1)(D) is amended by striking out
            ``executive ageny'' and inserting in lieu thereof ``executive
            agency''.
                (60) Section 2878(d)(4) is amended by striking out ``11401''
            and inserting in lieu thereof ``11411''.
                (61) Section 2885 is amended by striking out ``five years
            after the date of the enactment of the National Defense
            Authorization Act for Fiscal Year 1996'' and inserting in lieu
            thereof ``on February 10, 2001''.
                (62) Sections 4342(a)(10), 6954(a)(10), and 9342(a)(10) are
            amended by striking out ``Marianas'' and inserting in lieu
            thereof ``Mariana''.
                (63) Section 7606(e) is amended by striking out ``sections''
            and inserting in lieu thereof ``section''.
                (64) Section 7902(b)(8) is amended by inserting ``United
            States'' before ``Geological Survey''.

    [[Page 111 STAT. 1904]]

                (65) Section 8038(e) is amended by striking out ``(1)''.
                (66) The item relating to section 8069 in the table of
            sections at the beginning of chapter 807 is amended by striking
            out ``Nurse Corps'' and inserting in lieu thereof ``nurses''.
                (67) Section 12733(3) is amended--
                        (A) by inserting a comma after ``(B)''; and
                        (B) by striking out ``in which the date of the
                    enactment of the National Defense Authorization Act for
                    Fiscal Year 1997 occurs'' and inserting in lieu thereof
                    ``that includes September 23, 1996,''.
                (68) Section 14317(d) is amended by striking out ``section
            14314'' in the first sentence and inserting in lieu thereof
            ``section 14315''.

        (b) Title 37, United States Code.--Section 205(d) of title 37,
    United States Code, is amended by striking out the period after ``August
    1, 1979'' and inserting in lieu thereof a comma.
        (c) Public Law 104-201.--Effective <<NOTE: 10 USC 2502
    note. Effective date.>>  as of September 23, 1996, and as if included
    therein as enacted, the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201) is amended as follows:
                (1) Section 324(b)(2) <<NOTE: 10 USC 2706 note.>>  (110
            Stat. 2480) is amended by
            inserting after ``In this subsection'' the following: ``and
            subsection (c)''.
                (2) Section 367 (110 Stat. 2496) is amended--
                        (A) in subsection (a), <<NOTE: 10 USC 2554.>>  by
                    striking out ``Subchapter II of chapter'' and inserting
                    in lieu thereof ``Chapter''; and
                        (B) in subsection (b), by striking out
                    ``subchapter'' and inserting in lieu thereof
                    ``chapter''.
                (3) Section 371(a) <<NOTE: 10 USC 4411 note.>>  (110 Stat.
            2499) is amended by striking out ``Section 559(a)(1)'' and
            inserting in lieu thereof ``Section 559''.
                (4) Section 531(a) <<NOTE: 10 USC 12733.>>  (110 Stat. 2517)
            is amended by inserting ``of title 10, United States Code,''
            before ``is amended''.
                (5) Section <<NOTE: 10 USC 302c.>>  614(b)(2)(B) (110 Stat.
            2544) is amended by striking out ``the period'' and inserting in
            lieu thereof ``the semicolon''.
                (6) Section 802(1) <<NOTE: 10 USC 2302 note.>>  (110 Stat.
            2604) is amended by striking out ``1995'' in the first quoted
            matter therein and inserting in lieu thereof ``1996''.
                (7) Section 829(c) <<NOTE: 10 USC 2502.>>  (110 Stat. 2612)
            is amended--
                        (A) in paragraph (2), by striking out ``Section
                    2502(b)'' and inserting in lieu thereof ``Section
                    2502(c)''; and
                        (B) by redesignating paragraph (3) as subparagraph
                    (C) of paragraph (2).
                (8) Section <<NOTE: 10 USC 441 note.>>  1116(b) (110 Stat.
            2686) is amended by striking out ``section 1122'' and inserting
            in lieu thereof ``section 1111''.
                (9) Section 1606 (110 Stat. 2737) is amended--
                        (A) in <<NOTE: 20 USC 901.>>  subsection (a)(1)--
                              (i) by striking out the comma before ``or
                          are''; and
                              (ii) by inserting a semicolon after
                          ``Secretary of Defense'';
                        (B) in <<NOTE: 20 USC 903.>>  subsection (b)(1)(A),
                    by striking out ``Secretary of each'' and inserting in
                    lieu thereof ``secretary of each''; and
                        (C) in subsection <<NOTE: 20 USC 903.>>  (b)(2)(B),
                    by inserting a semicolon after ``Defense''.

        (d) Other Annual Defense Authorization Acts.--

    [[Page 111 STAT. 1905]]

                (1) Effective <<NOTE: Effective date. 10 USC 1076 note.>>
            as of February 10, 1996, and as if included therein as enacted,
            the National Defense Authorization Act for Fiscal Year 1996
            (Public Law 104-106) is amended as follows:
                        (A) Section <<NOTE: 10 USC 2701 note.>>
                    321(a)(2)(A) (110 Stat. 251) is amended by striking out
                    ``2710(d)'' and inserting in lieu thereof ``2701(d)''.
                        (B) Section <<NOTE: 10 USC 2461 note.>>  356(d)(3)
                    (110 Stat. 271) is amended by striking out ``or'' after
                    ``to any provision'' and inserting in lieu thereof
                    ``of''.
                        (C) Section 533(b) <<NOTE: 10 USC 6975, 6975
                    note.>>  (110 Stat. 315) is amended by inserting before
                    the period at the end the following: ``and the
                    amendments made by subsection (b), effective as of
                    October 5, 1994''.
                        (D) Section 703(b) <<NOTE: 10 USC 1076.>>  (110
                    Stat. 372) is amended by striking out ``Such paragraph''
                    and inserting in lieu thereof ``Such section''.
                        (E) Section 1501 (110 Stat. 500) is amended--
                              (i) in subsection <<NOTE: 10 USC 10154.>>
                          (d)(1), by striking out ``337(b)'' and ``2717''
                          and inserting in lieu thereof ``377(b)'' and
                          ``2737'', respectively; and
                              (ii) in subsection <<NOTE: 10 USC 10001
                          note.>>  (f)(2), by inserting ``of the Reserve
                          Officer Personnel Management Act'' before ``shall
                          take''.
                (2) The National Defense Authorization Act for Fiscal Year
            1993 (Public Law 102-484) is amended as follows:
                        (A) Section 812(c) (10 U.S.C. 1723 note) is amended
                    by inserting ``and Technology'' after ``for
                    Acquisition''.
                        (B) Section 1091(l)(3) (32 U.S.C. 501 note) is
                    amended by striking out ``the day preceding the date of
                    the enactment of this Act'' and inserting in lieu
                    thereof ``October 19, 1994''.
                        (C) Section 4471 (10 U.S.C. 2501 note) is amended by
                    realigning subsection (e) so as to be flush to the left
                    margin.
                (3) Section 807(b)(2)(A) of the National Defense
            Authorization Act for Fiscal Years 1992 and 1993 (Public Law
            102-190; 10 U.S.C. 2320 note) is amended by inserting before the
            period the following: ``and Technology''.
                (4) The National Defense Authorization Act for Fiscal Year
            1991 (Public Law 101-510) is amended as follows:
                        (A) Section 1205 (10 U.S.C. 1746 note) is amended by
                    striking out ``Under Secretary of Defense for
                    Acquisition'' each place it appears and inserting in
                    lieu thereof ``Under Secretary of Defense for
                    Acquisition and Technology''.
                        (B) Section 2905 (10 U.S.C. 2687 note) is amended--
                              (i) in subsection (b)(7), by striking out
                          ``4331'' in subparagraphs (K)(iii) and
                          (L)(iv)(III) and inserting in lieu thereof
                          ``4321''; and
                              (ii) in subsection (f)(3), by striking out
                          ``section 2873(a)'' and inserting in lieu thereof
                          ``section 2883(a)''.
                        (C) Section 2921 (10 U.S.C. 2687 note) is amended--
                              (i) in subsection (e)(3)(B), by striking out
                          ``Defense Subcommittees'' and inserting in lieu
                          thereof ``Subcommittee on Defense''; and
                              (ii) in subsection (f)(2), by striking out
                          ``the Committees on Armed Services of the Senate
                          and House of Representatives'' and inserting in
                          lieu thereof

    [[Page 111 STAT. 1906]]

                          ``the Committee on Armed Services of the Senate
                          and the Committee on National Security of the
                          House of Representatives''.
                (5) Section 1121(c) of the National Defense Authorization
            Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 10
            U.S.C. 113 note) is amended by striking out ``under this
            section--'' and all that follow through ``fiscal year 1990'' and
            inserting in lieu thereof ``under this section may not exceed
            5,000 during any fiscal year''.
                (6) Section 204(e)(3) of the Defense Authorization
            Amendments and Base Closure and Realignment Act (Public Law 100-
            526; 10 U.S.C. 2687 note) is amended by striking out ``section
            2873(a)'' and inserting in lieu thereof ``section 2883(a)''.

        (e) Title 5, United States Code.--Title 5, United States Code, is
    amended as follows:
                (1) Section 5315 is amended--
                        (A) in the item relating to the Chief Information
                    Officer of the Department of the Interior, by inserting
                    ``the'' before ``Interior''; and
                        (B) in the item relating to the Chief Information
                    Officer of the Department of the Treasury, by inserting
                    ``the'' before ``Treasury''.
                (2) Section 5316 is amended by striking out ``Atomic
            Energy'' after ``Assistant to the Secretary of Defense for'' and
            inserting in lieu thereof ``Nuclear and Chemical and Biological
            Defense Programs''.

        (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of August
    10, 1956 (33 U.S.C. 857a) is amended by striking out ``1374,''.
        (g) Acquisition Policy Statutes.--
                (1) Section 309 of the Federal Property and Administrative
            Services Act of 1949 (41 U.S.C. 259) is amended by striking out
            ``and'' at the end of subsection (b)(2).
                (2) The Office of Federal Procurement Policy Act is amended
            as follows:
                        (A) The item relating to section 27 in the table of
                    contents in section 1(b) is amended to read as follows:

    ``Sec. 27. Restrictions on disclosing and obtaining contractor bid or
               proposal information or source selection information.''.

                        (B) Section 6(d) (41 U.S.C. 405(d)) is amended--
                              (i) by striking out the period at the end of
                          paragraph (5)(J) and inserting in lieu thereof a
                          semicolon;
                              (ii) by moving paragraph (6) two ems to the
                          left; and
                              (iii) in paragraph (12), by striking out
                          ``small business'' and inserting in lieu thereof
                          ``small businesses''.
                        (C) Section 35(b)(2) (41 U.S.C. 431(b)(2)) is
                    amended by striking out ``commercial'' and inserting in
                    lieu thereof ``commercially available''.
                (3) Section 6 of the Contract Disputes Act of 1978 (41
            U.S.C. 605) is amended in subsections (d) and (e) by striking
            out ``(as in effect on September 30, 1995)'' each place it
            appears.
                (4) Subsections (d)(1) and (e) of section 16 of the Small
            Business Act (15 U.S.C. 645) are each amended by striking out
            ``concerns'' and inserting in lieu thereof ``concern''.

        (h) Amendments To Conform Change in Short Title of Information
    Technology Management Reform Act of 1996.--

    [[Page 111 STAT. 1907]]

                (1) Section 20 of the National Institute of Standards and
            Technology Act (15 U.S.C. 278g-3) is amended in subsections
            (a)(4) and (b)(2) by striking out ``Information Technology
            Management Reform Act of 1996'' and inserting in lieu thereof
            ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
                (2) Section 612(f) of title 28, United States Code, is
            amended by striking out ``the Information Technology Management
            Reform Act of 1996'' and inserting in lieu thereof ``division E
            of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)''.
                (3) Section 310(b) of title 38, United States Code, is
            amended by striking out ``the Information Technology Management
            Reform Act of 1996'' and inserting in lieu thereof ``division E
            of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)''.
                (4) Section 6(b) of the Computer Security Act of 1987 (40
            U.S.C. 1441 note) is amended by striking out ``Information
            Technology Management Reform Act of 1996'' and inserting in lieu
            thereof ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
                (5) Chapter 35 of title 44, United States Code, is amended--
                        (A) in section 3502(9)--
                              (i) by striking out ``the Information
                          Technology Management Reform Act of 1996'' and
                          inserting in lieu thereof ``the Clinger-Cohen Act
                          of 1996 (40 U.S.C. 1401)''; and
                              (ii) by inserting ``(40 U.S.C. 1452)'' after
                          ``that Act'';
                        (B) in section 3504(h)(2), by striking out ``the
                    Information Technology Management Reform Act of 1996''
                    and inserting in lieu thereof ``division E of the
                    Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.)'';
                    and
                        (C) in sections 3504(g)(2), 3504(g)(3),
                    3504(h)(1)(B), and 3518(d) by striking out ``Information
                    Technology Management Reform Act of 1996'' and inserting
                    in lieu thereof ``Clinger-Cohen Act of 1996 (40 U.S.C.
                    1441)''.

        (i) Coordination With <<NOTE: 10 USC 101 note.>>  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.

    SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.

        (a) Findings.--Congress <<NOTE: 10 USC 2281 note.>>  makes the
    following findings:
                (1) The Global Positioning System (consisting of a
            constellation of satellites and associated facilities capable of
            providing users on earth with a highly precise statement of
            their location on earth) makes significant contributions to the
            attainment of the national security and foreign policy goals of
            the United States, the safety and efficiency of international
            transportation, and the economic growth, trade, and productivity
            of the United States.
                (2) The infrastructure for the Global Positioning System
            (including both space and ground segments of the infrastructure)
            is vital to the effectiveness of United States and allied
            military forces and to the protection of the national security
            interests of the United States.
                (3) In addition to having military uses, the Global
            Positioning System has essential civil, commercial, and
            scientific uses.
                (4) As a result of the increasing demand of civil,
            commercial, and scientific users of the Global Positioning
            System--

    [[Page 111 STAT. 1908]]

                        (A) there has emerged in the United States a new
                    commercial industry to provide Global Positioning System
                    equipment and related services to the many and varied
                    users of the system; and
                        (B) there have been rapid technical advancements in
                    Global Positioning System equipment and services that
                    have contributed significantly to reductions in the cost
                    of the Global Positioning System and increases in the
                    technical capabilities and availability of the system
                    for military uses.
                (5) It is in the national interest of the United States for
            the United States--
                        (A) to support continuation of the multiple-use
                    character of the Global Positioning System;
                        (B) to promote broader acceptance and use of the
                    Global Positioning System and the technological
                    standards that facilitate expanded use of the system for
                    civil purposes;
                        (C) to coordinate with other countries to ensure (i)
                    efficient management of the electromagnetic spectrum
                    used by the Global Positioning System, and (ii)
                    protection of that spectrum in order to prevent
                    disruption of signals from the system and interference
                    with that portion of the electromagnetic spectrum used
                    by the system; and
                        (D) to encourage open access in all international
                    markets to the Global Positioning System and supporting
                    equipment, services, and techniques.

        (b) International <<NOTE: 10 USC 2281 note.>>  Cooperation.--
    Congress urges the President to promote the security of the United
    States and its allies, the public safety, and commercial interests by
    taking the following steps:
                (1) Undertaking a coordinated effort within the executive
            branch to seek to establish the Global Positioning System, and
            augmentations to the system, as a worldwide resource.
                (2) Seeking to enter into international agreements to
            establish signal and service standards that protect the Global
            Positioning System from disruption and interference.
                (3) Undertaking efforts to eliminate any barriers to, and
            other restrictions of foreign governments on, peaceful uses of
            the Global Positioning System.
                (4) Requiring that any proposed international agreement
            involving nonmilitary use of the Global Positioning System or
            any augmentation to the system not be agreed to by the United
            States unless the proposed agreement has been reviewed by the
            Secretary of State, the Secretary of Defense, the Secretary of
            Transportation, and the Secretary of Commerce (acting as the
            Interagency Global Positioning System Executive Board
            established by Presidential Decision Directive NSTC-6, dated
            March 28, 1996).

        (c) Fiscal Year 1998 Prohibition of Support of Foreign System.--None
    of the funds authorized to be appropriated under this Act may be used to
    support the operation and maintenance or enhancement of a satellite
    navigation system operated by a foreign country.
        (d) In General.--(1) Part IV of subtitle A of title 10, United
    States Code, is amended by inserting after chapter 134 the following new
    chapter:

    [[Page 111 STAT. 1909]]

             ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

    ``Sec.
    ``2281. Global Positioning System.

    ``Sec. 2281. Global Positioning System

        ``(a) Sustainment and Operation for Military Purposes.--The
    Secretary of Defense shall provide for the sustainment of the
    capabilities of the Global Positioning System (hereinafter in this
    section referred to as the `GPS'), and the operation of basic GPS
    services, that are beneficial for the national security interests of the
    United States. In doing so, the Secretary shall--
                ``(1) develop appropriate measures for preventing hostile
            use of the GPS so as to make it unnecessary for the Secretary to
            use the selective availability feature of the system
            continuously while not hindering the use of the GPS by the
            United States and its allies for military purposes; and
                ``(2) ensure that United States armed forces have the
            capability to use the GPS effectively despite hostile attempts
            to prevent the use of the system by such forces.

        ``(b) Sustainment and Operation for Civilian Purposes.--The
    Secretary of Defense shall provide for the sustainment and operation of
    the GPS Standard Positioning Service for peaceful civil, commercial, and
    scientific uses on a continuous worldwide basis free of direct user
    fees. In doing so, the Secretary--
                ``(1) shall provide for the sustainment and operation of the
            GPS Standard Positioning Service in order to meet the
            performance requirements of the Federal Radionavigation Plan
            prepared jointly by the Secretary of Defense and the Secretary
            of Transportation pursuant to subsection (c);
                ``(2) shall coordinate with the Secretary of Transportation
            regarding the development and implementation by the Government
            of augmentations to the basic GPS that achieve or enhance uses
            of the system in support of transportation;
                ``(3) shall coordinate with the Secretary of Commerce, the
            United States Trade Representative, and other appropriate
            officials to facilitate the development of new and expanded
            civil and commercial uses for the GPS;
                ``(4) shall develop measures for preventing hostile use of
            the GPS in a particular area without hindering peaceful civil
            use of the system elsewhere; and
                ``(5) may not agree to any restriction on the Global
            Positioning System proposed by the head of a department or
            agency of the United States outside the Department of Defense in
            the exercise of that official's regulatory authority that would
            adversely affect the military potential of the Global
            Positioning System.

        ``(c) Federal Radionavigation Plan.--The Secretary of Defense and
    the Secretary of Transportation shall jointly prepare the Federal
    Radionavigation Plan. The plan shall be revised and updated not less
    often than every two years. The plan shall be prepared in accordance
    with the requirements applicable to such plan as first prepared pursuant
    to section 507 of the International Maritime Satellite
    Telecommunications <<NOTE: Federal Register, publication.>>  Act (47
    U.S.C. 756). The plan, and any amendment to the plan, shall be published
    in the Federal Register.

    [[Page 111 STAT. 1910]]

        ``(d) Biennial Report.--(1) Not later than 30 days after the end of
    each even-numbered fiscal year, the Secretary of Defense shall submit to
    the Committee on Armed Services of the Senate and the Committee on
    National Security of the House of Representatives a report on the Global
    Positioning System. The report shall include a discussion of the
    following matters:
                ``(A) The operational status of the system.
                ``(B) The capability of the system to satisfy effectively
            (i) the military requirements for the system that are current as
            of the date of the report, and (ii) the performance requirements
            of the Federal Radionavigation Plan.
                ``(C) The most recent determination by the President
            regarding continued use of the selective availability feature of
            the system and the expected date of any change or elimination of
            the use of that feature.
                ``(D) The status of cooperative activities undertaken by the
            United States with the governments of other countries concerning
            the capability of the system or any augmentation of the system
            to satisfy civil, commercial, scientific, and military
            requirements, including a discussion of the status and results
            of activities undertaken under any regional international
            agreement.
                ``(E) Any progress made toward establishing GPS as an
            international standard for consistency of navigational service.
                ``(F) Any progress made toward protecting GPS from
            disruption and interference.
                ``(G) The effects of use of the system on national security,
            regional security, and the economic competitiveness of United
            States industry, including the Global Positioning System
            equipment and service industry and user industries.

        ``(2) In preparing the parts of each such report required under
    subparagraphs (D), (E), (F), and (G) of paragraph (1), the Secretary of
    Defense shall consult with the Secretary of State, the Secretary of
    Commerce, and the Secretary of Transportation.
        ``(e) Definitions.--In this section:
                ``(1) The term `basic GPS services' means the following
            components of the Global Positioning System that are operated
            and maintained by the Department of Defense:
                        ``(A) The constellation of satellites.
                        ``(B) The navigation payloads that produce the
                    Global Positioning System signals.
                        ``(C) The ground stations, data links, and
                    associated command and control facilities.
                ``(2) The term `GPS Standard Positioning Service' means the
            civil and commercial service provided by the basic Global
            Positioning System as defined in the 1996 Federal
            Radionavigation Plan (published jointly by the Secretary of
            Defense and the Secretary of Transportation in July 1997).''.

        (2) The tables of chapters at the beginning of subtitle A, and at
    the beginning of part IV of subtitle A, of such title are amended by
    inserting after the item relating to chapter 134 the following new item:

    ``136. Provisions Relating to Specific Programs..................2281''.

    [[Page 111 STAT. 1911]]

    SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY PROVIDED
                BY AIR CARRIERS.

        (a) Authority To Protect Information.--Section 2640 of title 10,
    United States Code, is amended--
                (1) by redesignating subsections (h) and (i) as subsections
            (i) and (j), respectively; and
                (2) by inserting after subsection (g) the following new
            subsection (h):

        ``(h) Authority To Protect Safety-Related Information Voluntarily
    Provided by an Air Carrier.--(1) Subject to paragraph (2), the Secretary
    of Defense may (notwithstanding any other provision of law) withhold
    from public disclosure safety-related information that is provided to
    the Secretary voluntarily by an air carrier for the purposes of this
    section.
        ``(2) Information may be withheld under paragraph (1) from public
    disclosure only if the Secretary determines that--
                ``(A) the disclosure of the information would inhibit an air
            carrier from voluntarily providing, in the future, safety-
            related information for the purposes of this section or for
            other air safety purposes involving the Department of Defense or
            another Federal agency; and
                ``(B) the receipt of such information generally enhances the
            fulfillment of responsibilities under this section or other air
            safety responsibilities involving the Department of Defense or
            another Federal agency.

        ``(3) If the Secretary provides to the head of another agency
    safety-related information described in paragraph (1) with respect to
    which the Secretary has made a determination described in paragraph (2),
    the head of that agency shall (notwithstanding any other provision of
    law) withhold the information from public disclosure unless the
    disclosure is specifically authorized by the Secretary.''.
        (b) Applicability.--Subsection <<NOTE: 10 USC 2640 note.>>  (h) of
    section 2640 of title 10, United States Code, as added by subsection
    (a), shall apply with respect to requests for information made on or
    after the date of the enactment of this Act.

    SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR
                CIVILIAN YOUTH.

        (a) Program Authority.--Chapter 5 of title 32, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 509. National Guard Challenge Program of opportunities for
                            civilian youth

        ``(a) Program Authority and Purpose.--The Secretary of Defense,
    acting through the Chief of the National Guard Bureau, may conduct a
    National Guard civilian youth opportunities program (to be known as the
    `National Guard Challenge Program') to use the National Guard to provide
    military-based training, including supervised work experience in
    community service and conservation projects, to civilian youth who cease
    to attend secondary school before graduating so as to improve the life
    skills and employment potential of such youth.
        ``(b) Conduct of the Program.--The Secretary of Defense shall
    provide for the conduct of the National Guard Challenge Program in such
    States as the Secretary considers to be appropriate,

    [[Page 111 STAT. 1912]]

    except that Federal expenditures under the program may not exceed
    $50,000,000 for any fiscal year.
        ``(c) Program Agreements.--(1) To carry out the National Guard
    Challenge Program in a State, the Secretary of Defense shall enter into
    an agreement with the Governor of the State or, in the case of the
    District of Columbia, with the commanding general of the District of
    Columbia National Guard, under which the Governor or the commanding
    general will establish, organize, and administer the National Guard
    Challenge Program in the State.
        ``(2) The agreement may provide for the Secretary to provide funds
    to the State for civilian personnel costs attributable to the use of
    civilian employees of the National Guard in the conduct of the National
    Guard Challenge Program.
        ``(d) Matching Funds Required.--The amount of assistance provided
    under this section to a State program of the National Guard Challenge
    Program may not exceed--
                ``(1) for fiscal year 1998, 75 percent of the costs of
            operating the State program during that year;
                ``(2) for fiscal year 1999, 70 percent of the costs of
            operating the State program during that year;
                ``(3) for fiscal year 2000, 65 percent of the costs of
            operating the State program during that year; and
                ``(4) for fiscal year 2001 and each subsequent fiscal year,
            60 percent of the costs of operating the State program during
            that year.

        ``(e) Persons Eligible To Participate in Program.--A school dropout
    from secondary school shall be eligible to participate in the National
    Guard Challenge Program. <<NOTE: Regulations.>>  The Secretary of
    Defense shall prescribe the standards and procedures for selecting
    participants from among school dropouts.

        ``(f) Authorized Benefits for Participants.--(1) To the extent
    provided in an agreement entered into in accordance with subsection (c)
    and subject to the approval of the Secretary of Defense, a person
    selected for training in the National Guard Challenge Program may
    receive the following benefits in connection with that training:
                ``(A) Allowances for travel expenses, personal expenses, and
            other expenses.
                ``(B) Quarters.
                ``(C) Subsistence.
                ``(D) Transportation.
                ``(E) Equipment.
                ``(F) Clothing.
                ``(G) Recreational services and supplies.
                ``(H) Other services.
                ``(I) Subject to paragraph (2), a temporary stipend upon the
            successful completion of the training, as characterized in
            accordance with procedures provided in the agreement.

        ``(2) In the case of a person selected for training in the National
    Guard Challenge Program who afterwards becomes a member of the Civilian
    Community Corps under subtitle E of title I of the National and
    Community Service Act of 1990 (42 U.S.C. 12611 et seq.), the person may
    not receive a temporary stipend under paragraph (1)(I) while the person
    is a member of that Corps. The person may receive the temporary stipend
    after completing service in the Corps unless the person elects to
    receive benefits provided

    [[Page 111 STAT. 1913]]

    under subsection (f) or (g) of section 158 of such Act (42 U.S.C.
    12618).
        ``(g) Program Personnel.--(1) Personnel of the National Guard of a
    State in which the National Guard Challenge Program is conducted may
    serve on full-time National Guard duty for the purpose of providing
    command, administrative, training, or supporting services for the
    program. For the performance of those services, any such personnel may
    be ordered to duty under section 502(f) of this title for not longer
    than the period of the program.
        ``(2) A Governor participating in the National Guard Challenge
    Program and the commanding general of the District of Columbia National
    Guard (if the District of Columbia National Guard is participating in
    the program) may procure by contract the temporary full time services of
    such civilian personnel as may be necessary to augment National Guard
    personnel in carrying out the National Guard Challenge Program in that
    State.
        ``(3) Civilian employees of the National Guard performing services
    for the National Guard Challenge Program and contractor personnel
    performing such services may be required, when appropriate to achieve
    the purposes of the program, to be members of the National Guard and to
    wear the military uniform.
        ``(h) Equipment and Facilities.--(1) Equipment and facilities of the
    National Guard, including military property of the United States issued
    to the National Guard, may be used in carrying out the National Guard
    Challenge Program.
        ``(2) Activities under the National Guard Challenge Program shall be
    considered noncombat activities of the National Guard for purposes of
    section 710 of this title.
        ``(i) Status of Participants.--(1) A person receiving training under
    the National Guard Challenge Program shall be considered an employee of
    the United States for the purposes of the following provisions of law:
                ``(A) Subchapter I of chapter 81 of title 5 (relating to
            compensation of Federal employees for work injuries).
                ``(B) Section 1346(b) and chapter 171 of title 28 and any
            other provision of law relating to the liability of the United
            States for tortious conduct of employees of the United States.

        ``(2) In the application of the provisions of law referred to in
    paragraph (1)(A) to a person referred to in paragraph (1)--
                ``(A) the person shall not be considered to be in the
            performance of duty while the person is not at the assigned
            location of training or other activity or duty authorized in
            accordance with a program agreement referred to in subsection
            (c), except when the person is traveling to or from that
            location or is on pass from that training or other activity or
            duty;
                ``(B) the person's monthly rate of pay shall be deemed to be
            the minimum rate of pay provided for grade GS-2 of the General
            Schedule under section 5332 of title 5; and
                ``(C) the entitlement of a person to receive compensation
            for a disability shall begin on the day following the date on
            which the person's participation in the National Guard Challenge
            Program is terminated.

        ``(3) A person referred to in paragraph (1) may not be considered an
    employee of the United States for any purpose other than a purpose set
    forth in that paragraph.
        ``(j) Supplemental Resources.--To carry out the National Guard
    Challenge Program in a State, the Governor of the State

    [[Page 111 STAT. 1914]]

    or, in the case of the District of Columbia, the commanding general of
    the District of Columbia National Guard may supplement funds made
    available under the program out of other resources (including gifts)
    available to the Governor or the commanding general. The Governor or the
    commanding general may accept, use, and dispose of gifts or donations of
    money, other property, or services for the National Guard Challenge
    Program.
        ``(k) Report.--Within 90 days after the end of each fiscal year, the
    Secretary of Defense shall submit to Congress a report on the design,
    conduct, and effectiveness of the National Guard Challenge Program
    during the preceding fiscal year. In preparing the report, the Secretary
    shall coordinate with the Governor of each State in which the National
    Guard Challenge Program is carried out and, if the program is carried
    out in the District of Columbia, with the commanding general of the
    District of Columbia National Guard.
        ``(l) Definitions.--In this section:
                ``(1) The term `State' includes the Commonwealth of Puerto
            Rico, the territories, and the District of Columbia.
                ``(2) The term `school dropout' means an individual who is
            no longer attending any school and who has not received a
            secondary school diploma or a certificate from a program of
            equivalency for such a diploma.''.

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

    ``509. National Guard Challenge Program of opportunities for civilian
               youth.''.

    SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED BENEFITS FOR
                PERSONS CONVICTED OF CAPITAL CRIMES.

        (a) In General.--(1) Chapter 49 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 985. Persons convicted of capital crimes: denial of certain
                            burial-related benefits

        ``(a) Prohibition of Performance of Military Honors.--The Secretary
    of a military department and the Secretary of Transportation, with
    respect to the Coast Guard when it is not operating as a service in the
    Navy, may not provide military honors at the funeral or burial of a
    person who has been convicted of a capital offense under Federal or
    State law for which the person was sentenced to death or life
    imprisonment without parole.
        ``(b) Disqualification From Burial in Military Cemeteries.--A person
    convicted of a capital offense under Federal law is not entitled to or
    eligible for, and may not be provided, burial in--
                ``(1) Arlington National Cemetery;
                ``(2) the Soldiers' and Airmen's National Cemetery; or
                ``(3) any other cemetery administered by the Secretary of a
            military department or the Secretary of Defense.

        ``(c) Definitions.--In this section:
                ``(1) The term `capital offense' means an offense for which
            the death penalty may be imposed.
                ``(2) The term `burial' includes inurnment.
                ``(3) The term `State' includes the District of Columbia and
            any commonwealth or territory of the United States.''.

    [[Page 111 STAT. 1915]]

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

    ``985. Persons convicted of capital crimes: denial of certain burial-
               related benefits.''.

        (b) Applicability.--Section <<NOTE: 10 USC 985 note.>>  985 of title
    10, United States Code, as added by subsection (a), applies with respect
    to persons dying after January 1, 1997.

    SEC. 1078. RESTRICTIONS <<NOTE: 50 USC 1520a.>>  ON THE USE OF HUMAN
                SUBJECTS FOR TESTING OF CHEMICAL OR BIOLOGICAL AGENTS.

        (a) Prohibited Activities.--The Secretary of Defense may not conduct
    (directly or by contract)--
                (1) any test or experiment involving the use of a chemical
            agent or biological agent on a civilian population; or
                (2) any other testing of a chemical agent or biological
            agent on human subjects.

        (b) Exceptions.--Subject to subsections (c), (d), and (e), the
    prohibition in subsection (a) does not apply to a test or experiment
    carried out for any of the following purposes:
                (1) Any peaceful purpose that is related to a medical,
            therapeutic, pharmaceutical, agricultural, industrial, or
            research activity.
                (2) Any purpose that is directly related to protection
            against toxic chemicals or biological weapons and agents.
                (3) Any law enforcement purpose, including any purpose
            related to riot control.

        (c) Informed Consent Required.--The Secretary of Defense may conduct
    a test or experiment described in subsection (b) only if informed
    consent to the testing was obtained from each human subject in advance
    of the testing on that subject.
        (d) Prior Notice to <<NOTE: Reports.>>  Congress.--Not later than 30
    days after the date of final approval within the Department of Defense
    of plans for any experiment or study to be conducted by the Department
    of Defense (whether directly or under contract) involving the use of
    human subjects for the testing of a chemical agent or a biological
    agent, 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 a full accounting of
    those plans, and the experiment or study may then be conducted only
    after the end of the 30-day period beginning on the date such report is
    received by those committees.

        (e) Biological Agent Defined.--In this section, the term
    ``biological agent'' means any micro-organism (including bacteria,
    viruses, fungi, rickettsiac, or protozoa), pathogen, or infectious
    substance, and any naturally occurring, bioengineered, or synthesized
    component of any such micro-organism, pathogen, or infectious substance,
    whatever its origin or method of production, that is capable of
    causing--
                (1) death, disease, or other biological malfunction in a
            human, an animal, a plant, or another living organism;
                (2) deterioration of food, water, equipment, supplies, or
            materials of any kind; or
                (3) deleterious alteration of the environment.

        (f) Report and Certification.--Section 1703(b) of the National
    Defense Authorization Act for Fiscal Year 1994 (50 U.S.C. 1523(b)) is
    amended by adding at the end the following new paragraph:

    [[Page 111 STAT. 1916]]

                ``(9) A description of any program involving the testing of
            biological or chemical agents on human subjects that was carried
            out by the Department of Defense during the period covered by
            the report, together with--
                        ``(A) a detailed justification for the testing;
                        ``(B) a detailed explanation of the purposes of the
                    testing;
                        ``(C) a description of each chemical or biological
                    agent tested; and
                        ``(D) the Secretary's certification that informed
                    consent to the testing was obtained from each human
                    subject in advance of the testing on that subject.''.

        (g) Repeal of Superseded Provision of Law.--Section 808 of the
    Department of Defense Appropriation Authorization Act, 1978 (50 U.S.C.
    1520), is repealed.

    SEC. 1079. TREATMENT <<NOTE: 49 USC 303 note.>>  OF MILITARY FLIGHT
                OPERATIONS.

        No military flight operation (including a military training flight),
    or designation of airspace for such an operation, may be treated as a
    transportation program or project for purposes of section 303(c) of
    title 49, United States Code.

    SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO SERVE
                HONORABLY IN THE ARMED FORCES DURING A PERIOD OF CONFLICT.

        (a) In General.--Section 329(a)(1) of the Immigration and
    Nationality Act (8 U.S.C. 1440(a)(1)) is amended--
                (1) by inserting ``, reenlistment, extension of
            enlistment,'' after ``at the time of enlistment''; and
                (2) by inserting ``or on board a public vessel owned or
            operated by the United States for noncommercial service,'' after
            ``United States, the Canal Zone, American Samoa, or Swains
            Island,''.

        (b) Effective Date.--The <<NOTE: Applicability. 8 USC 1440 note.>>
    amendments made by subsection (a) shall apply with respect to
    enlistments, reenlistments, extensions of enlistment, and inductions of
    persons occurring on or after the date of the enactment of this Act.

    SEC. 1081. APPLICABILITY <<NOTE: 10 USC 111 note.>>  OF CERTAIN PAY
                AUTHORITIES TO
                MEMBERS OF SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.

        (a) Applicability of Certain Pay Authorities.--(1) An individual who
    is a member of a commission or panel specified in subsection (b) and is
    an annuitant otherwise covered by section 8344 or 8468 of title 5,
    United States Code, by reason of membership on the commission or panel
    is not subject to the provisions of that section with respect to such
    membership.
        (2) An individual who is a member of a commission or panel specified
    in subsection (b) and is a member or former member of a uniformed
    service is not subject to the provisions of subsections (b) and (c) of
    section 5532 of such title with respect to membership on the commission
    or panel.
        (b) Specified Entities.--Subsection (a) applies--
                (1) effective as <<NOTE: Effective date.>>  of September 23,
            1996, to members of the National Defense Panel established by
            section 924 of the National Defense Authorization Act for Fiscal
            Year 1997 (Public Law 104-201; 110 Stat. 2626); and

    [[Page 111 STAT. 1917]]

                (2) effective as of <<NOTE: Effective date.>>  October 9,
            1996, to members of the Commission on Servicemembers and
            Veterans Transition Assistance established by section 701 of the
            Veterans' Benefits Improvements Act of 1996 (Public Law 104-275;
            110 Stat. 3346; 38 U.S.C. 545 note).

    SEC. 1082. <<NOTE: 36 USC 189a.>>  DISPLAY OF POW/MIA FLAG.

        (a) Required Display.--The POW/MIA flag shall be displayed at the
    locations specified in subsection (c) on POW/MIA flag display days. Such
    display shall serve (1) as the symbol of the Nation's concern and
    commitment to achieving the fullest possible accounting of Americans
    who, having been prisoners of war or missing in action, still remain
    unaccounted for, and (2) as the symbol of the Nation's commitment to
    achieving the fullest possible accounting for Americans who in the
    future may become prisoners of war, missing in action, or otherwise
    unaccounted for as a result of hostile action.
        (b) Days for Flag Display.--(1) For purposes of this section, POW/
    MIA flag display days are the following:
                (A) Armed Forces Day, the third Saturday in May.
                (B) Memorial Day, the last Monday in May.
                (C) Flag Day, June 14.
                (D) Independence Day, July 4.
                (E) National POW/MIA Recognition Day.
                (F) Veterans Day, November 11.

        (2) In addition to the days specified in paragraph (1), POW/MIA flag
    display days include--
                (A) in the case of display at medical centers of the
            Department of Veterans Affairs (required by subsection (c)(7)),
            any day on which the flag of the United States is displayed; and
                (B) in the case of display at United States Postal Service
            post offices (required by subsection (c)(8)), the last business
            day before a day specified in paragraph (1) that in any year is
            not itself a business day.

        (c) Locations for Flag Display.--The locations for the display of
    the POW/MIA flag under subsection (a) are the following:
                (1) The Capitol.
                (2) The White House.
                (3) The Korean War Veterans Memorial and the Vietnam
            Veterans Memorial.
                (4) Each national cemetery.
                (5) The buildings containing the official office of--
                        (A) the Secretary of State;
                        (B) the Secretary of Defense;
                        (C) the Secretary of Veterans Affairs; and
                        (D) the Director of the Selective Service System.
                (6) Each major military installation, as designated by the
            Secretary of Defense.
                (7) Each medical center of the Department of Veterans
            Affairs.
                (8) Each United States Postal Service post office.

        (d) Coordination With Other Display Requirement.--Display of the
    POW/MIA flag at the Capitol pursuant to paragraph (1) of subsection (c)
    is in addition to the display of that flag in the Rotunda of the Capitol
    pursuant to Senate Concurrent Resolution 5 of the 101st Congress, agreed
    to on February 22, 1989 (103 Stat. 2533).

    [[Page 111 STAT. 1918]]

        (e) Display To Be in a Manner Visible to the Public.--Display of the
    POW/MIA flag pursuant to this section shall be in a manner designed to
    ensure visibility to the public.
        (f) Limitation.--This section may not be construed or applied so as
    to require any employee to report to work solely for the purpose of
    providing for the display of the POW/MIA flag.
        (g) POW/MIA Flag Defined.--As used in this section, the term ``POW/
    MIA flag'' means the National League of Families POW/MIA flag recognized
    officially and designated by section 2 of Public Law 101-355 (36 U.S.C.
    189).
        (h) Regulations for Implementation.--Not later than 180 days after
    the date of the enactment of this Act, the head of each department,
    agency, or other establishment responsible for a location specified in
    subsection (c) (other than the Capitol) shall prescribe such regulations
    as necessary to carry out this section.
        (i) Procurement and Distribution of Flags.--Not later than 30 days
    after the date of the enactment of this Act, the Administrator of
    General Services shall procure POW/MIA flags and distribute them as
    necessary to carry out this section.
        (j) Repeal of Superseded Law.--Section 1084 of Public Law 102-190
    (36 U.S.C. 189 note) is repealed.

    SEC. 1083. <<NOTE: 10 USC 113 note.>>  PROGRAM TO COMMEMORATE 50TH
                ANNIVERSARY OF THE KOREAN CONFLICT.

        (a) Commemorative Program.--The Secretary of Defense may conduct a
    program to commemorate the 50th anniversary of the Korean conflict. In
    conducting the commemorative program, the Secretary may coordinate,
    support, and facilitate other programs and activities of the Federal
    Government, State and local governments, and other persons in
    commemoration of the Korean conflict.
        (b) Commemorative Activities.--The commemorative program may include
    activities and ceremonies--
                (1) to provide the people of the United States with a clear
            understanding and appreciation of the lessons and history of the
            Korean conflict;
                (2) to thank and honor veterans of the Korean conflict and
            their families;
                (3) to pay tribute to the sacrifices and contributions made
            on the home front by the people of the United States during the
            Korean conflict;
                (4) to highlight advances in technology, science, and
            medicine related to military research conducted during the
            Korean conflict;
                (5) to recognize the contributions and sacrifices made by
            the allies of the United States in the Korean conflict; and
                (6) to highlight the role of the Armed Forces of the United
            States, then and now, in maintaining world peace through
            strength.

        (c) Names and Symbols.--The Secretary of Defense shall have the sole
    and exclusive right to use the names ``The Department of Defense Korean
    Conflict Commemoration'', and such seal, emblems, and badges
    incorporating such name as the Secretary may lawfully adopt. Nothing in
    this section may be construed to supersede rights that are established
    or vested before the date of the enactment of this Act.
        (d) Commemorative Account.--(1) There is established in the Treasury
    an account to be known as the ``Department of Defense

    [[Page 111 STAT. 1919]]

    Korean Conflict Commemoration Account'', which shall be administered by
    the Secretary of Defense. There shall be deposited into the account all
    proceeds derived from the Secretary's use of the exclusive rights
    described in subsection (c). The Secretary may use funds in the account
    only for the purpose of conducting the commemorative program.
        (2) Not later than <<NOTE: Reports.>>  60 days after completion of
    all activities and ceremonies conducted as part of the commemorative
    program, the Secretary shall submit to Congress a report containing an
    accounting of all of the funds deposited into and expended from the
    account or otherwise expended under this section, and of any funds
    remaining in the account. Unobligated funds remaining in the account on
    that date shall be held in the account until transferred by law.

        (e) Acceptance of Voluntary Services.--(1) Notwithstanding section
    1342 of title 31, United States Code, the Secretary of Defense may
    accept from any person voluntary services to be provided in furtherance
    of the commemorative program.
        (2) A person providing voluntary services under this subsection
    shall be considered to be a Federal employee for purposes of chapter 81
    of title 5, United States Code, relating to compensation for work-
    related injuries. The person shall also be considered a special
    governmental employee for purposes of standards of conduct and sections
    202, 203, 205, 207, 208, and 209 of title 18, United States Code. A
    person who is not otherwise employed by the Federal Government shall not
    be considered to be a Federal employee for any other purpose by reason
    of the provision of voluntary services under this subsection.
        (3) The Secretary may provide for reimbursement of incidental
    expenses incurred by a person providing voluntary services under this
    subsection. The Secretary shall determine which expenses are eligible
    for reimbursement under this paragraph.
        (f) Limitation on Expenditures.--Total expenditures to carry out the
    commemorative program may not exceed $100,000.

    SEC. 1084. COMMENDATION <<NOTE: 10 USC note prec. 1121.>>  OF MEMBERS OF
                THE ARMED FORCES AND GOVERNMENT CIVILIAN PERSONNEL WHO
                SERVED DURING THE COLD WAR; CERTIFICATE OF RECOGNITION.

        (a) Findings.--The Congress finds the following:
                (1) During the period of the Cold War, from the end of World
            War II until the collapse of the Soviet Union in 1991, the
            United States and the Soviet Union engaged in a global military
            rivalry.
                (2) This rivalry, potentially the most dangerous military
            confrontation in the history of mankind, has come to a close
            without a direct superpower military conflict.
                (3) Military and civilian personnel of the Department of
            Defense, personnel in the intelligence community, members of the
            foreign service, and other officers and employees of the United
            States faithfully performed their duties during the Cold War.
                (4) Many such personnel performed their duties while
            isolated from family and friends and served overseas under
            frequently arduous conditions in order to protect the United
            States and achieve a lasting peace.
                (5) The discipline and dedication of those personnel were
            fundamental to the prevention of a superpower military conflict.

    [[Page 111 STAT. 1920]]

        (b) Congressional Commendation.--The Congress hereby commends the
    members of the Armed Forces and civilian personnel of the Government who
    contributed to the historic victory in the Cold War and expresses its
    gratitude and appreciation for their service and sacrifices.
        (c) Certificates of Recognition.--The Secretary of Defense shall
    prepare a certificate recognizing the Cold War service of qualifying
    members of the Armed Forces and civilian personnel of the Department of
    Defense and other Government agencies contributing to national security,
    as determined by the Secretary, and shall provide the certificate to
    such members and civilian personnel upon request.

    SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS.

        (a) Findings.--Congress finds that the practice of providing by
    statute Federal charters to certain nonprofit organizations--
                (1) may be perceived as implying a Government imprimatur of
            approval of those organizations; and
                (2) may mistakenly lead to public perception that the United
            States ensures the integrity and worthiness of those
            organizations.

        (b) Sense of Congress.--It is the sense of Congress--
                (1) that because of the perceived implicit Government
            imprimatur of approval conveyed by enactment of a Federal
            charter for an organization, such a charter should be granted
            only in the rarest and most extraordinary cases; and
                (2) that no statutory Federal charter should be enacted
            after the enactment of this Act unless the charter is approved
            by Congress upon favorable report by the committees of
            jurisdiction of the respective Houses.

    SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.

        (a) Findings.--Congress finds that--
                (1) members of the Armed Forces have a fundamental right to
            vote in Federal, State, and local elections; and
                (2) an extended absence of a member of the Armed Forces from
            the place of the member's residency or domicile due to military
            or naval orders is not of itself grounds to consider the
            member's residency or domicile as lost or changed.

        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense, in consultation with the Attorney General, should
    review how best to protect the right of members of the Armed Forces to
    vote in Federal, State, and local elections while taking into account
    the right of States to prescribe requirements for voter registration.
    Such a review should include an assessment of challenges to military
    voting rights and consideration of possible legislative remedies to
    ensure that, for purposes of voting in Federal, State, and local
    elections, a member of the Armed Forces who is absent from a State in
    compliance with military or naval orders is not, solely by reason of
    that absence, considered to have lost or changed residency or domicile.

    SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF THE ARMED
                FORCES OF THE UNITED STATES.

        (a) Findings.--Congress makes the following findings:

    [[Page 111 STAT. 1921]]

                (1) In its more than 200 years of existence as a nation, the
            United States has never conferred on any person the status of
            being an honorary veteran of the Armed Forces of the United
            States.
                (2) Status as an honorary veteran of the Armed Forces of the
            United States is and should remain an extraordinary honor not
            lightly conferred nor frequently granted.
                (3) The lifetime of accomplishments and service of Leslie
            Townes (Bob) Hope on behalf of members of the Armed Forces of
            the United States fully justifies the conferring of that status.
                (4) Bob Hope attempted to enlist in the Armed Forces to
            serve his country during World War II but was informed that the
            greatest service he could provide his country was as a civilian
            entertainer for the troops.
                (5) During World War II, the Korean Conflict, the Vietnam
            War, the Persian Gulf War, and the Cold War, Bob Hope travelled
            to visit and entertain millions of members of the Armed Forces
            in numerous countries, on ships at sea, and in combat zones
            ashore.
                (6) Bob Hope has been awarded the Congressional Gold Medal,
            the Presidential Medal of Freedom, the Distinguished Service
            Medal of each of the branches of the Armed Forces and more than
            100 other citations and awards from national veterans service
            organizations and civic and humanitarian organizations.
                (7) Bob Hope has given unselfishly of himself for over half
            a century to be with American service members on foreign shores,
            working tirelessly to bring a spirit of humor and cheer to
            millions of service members during their loneliest moments, and
            has, thereby, extended to them for the American people a touch
            of home away from home.

        (b) Designation of Bob Hope as Honorary Veteran.--
    Congress--
                (1) extends its gratitude, on behalf of the American people,
            to Leslie Townes (Bob) Hope, of the State of California, for his
            lifetime of accomplishments and service on behalf of members of
            the Armed Forces of the United States; and
                (2) hereby confers upon him the status of being an honorary
            veteran of the Armed Forces of the United States.

    SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

        (a) Extension.--Section 44310 of title 49, United States Code, is
    amended by striking out ``September 30, 1997'' and inserting in lieu
    thereof ``September 30, 2002''.
        (b) Effective <<NOTE: 49 USC 44310 note.>>  Date.--This section
    shall take effect as of September 30, 1997.

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

    Sec. 1101. Use of prohibited constraints to manage Department of Defense

               personnel.
    Sec. 1102. Veterans' preference status for certain veterans who served
               on active duty during the Persian Gulf War.
    Sec. 1103. Repeal of deadline for placement consideration of
               involuntarily
               separated military reserve technicians.
    Sec. 1104. Rate of pay of Department of Defense overseas teachers upon
               transfer to General Schedule position.

    [[Page 111 STAT. 1922]]

    Sec. 1105. Garnishment and involuntary allotment.
    Sec. 1106. Extension and revision of voluntary separation incentive pay
               authority.
    Sec. 1107. Use of approved fire-safe accommodations by Government
               employees on official business.
    Sec. 1108. Navy higher education pilot program regarding administration
               of
               business relationships between Government and private sector.
    Sec. 1109. Authority for Marine Corps University to employ civilian
               faculty
               members.

    SEC. 1101. <<NOTE: Reports.>>  USE OF PROHIBITED CONSTRAINTS TO MANAGE
                DEPARTMENT OF DEFENSE PERSONNEL.

        Section 129 of title 10, United States Code, is amended by adding at
    the end the following new subsection:
        ``(f)(1) Not later than February 1 of each year, the Secretary of
    each military department and the head of each Defense Agency 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 management of the civilian workforce under the jurisdiction of
    that official.
        ``(2) Each report of an official under paragraph (1) shall contain
    the following:
                ``(A) The official's certification (i) that the civilian
            workforce under the jurisdiction of the official is not subject
            to any constraint or limitation in terms of man years, end
            strength, full-time equivalent positions, or maximum number of
            employees, and (ii) that, during the 12 months preceding the
            date on which the report is due, such workforce has not been
            subject to any such constraint or limitation.
                ``(B) A description of how the civilian workforce is
            managed.
                ``(C) A detailed description of the analytical tools used to
            determine civilian workforce requirements during the 12-month
            period referred to in subparagraph (A).''.

    SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED
                ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.

        (a) Definition of Veteran for Purposes of Preference Eligible
    Status.--Section 2108 of title 5, United States Code, is amended--
                (1) in paragraph (1)--
                        (A) by striking ``or'' at the end of subparagraph
                    (A);
                        (B) by inserting ``or'' at the end of subparagraph
                    (B); and
                        (C) by inserting after subparagraph (B) the
                    following new subparagraph:
                        ``(C) served on active duty as defined by section
                    101(21) of title 38 in the armed forces during the
                    period beginning on August 2, 1990, and ending on
                    January 2, 1992;''; and
                (2) in paragraph (3)(B), by inserting ``or (C)'' after
            ``paragraph (1)(B)''.

        (b) Additional Points.--Section 3309(2) of such title is amended by
    striking ``2108(3)(A)'' and inserting ``2108(3)(A)-(B)''.
        (c) Technical Amendments.--Section 2108(1)(B) of such title is
    further amended--
                (1) by striking ``the date of enactment of the Veterans'
            Education and Employment Assistance Act of 1976,'' and inserting
            ``October 15, 1976,''; and
                (2) by striking ``511(d) of title 10'' and inserting
            ``12103(d) of title 10''.

    [[Page 111 STAT. 1923]]

    SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF
                INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.

        (a) Repeal of Deadline.--Section 3329(b) of title 5, United States
    Code, is amended by striking out ``not later than 6 months after the
    date of the application''.
        (b) Technical Correction.--Such section is further amended by
    striking out ``a position described in subsection (c)'' the second place
    it appears.

    SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHERS UPON
                TRANSFER TO GENERAL SCHEDULE POSITION.

        (a) Prevention <<NOTE: Regulations.>>  of Excessive Increases.--
    Section 5334(d) of title 5, United States Code, is amended by striking
    out ``20 percent'' and all that follows and inserting in lieu thereof
    ``an amount determined under regulations which the Secretary of Defense
    shall prescribe for the determination of the yearly rate of pay of the
    position. The amount by which a rate of pay is increased under the
    regulations may not exceed the amount equal to 20 percent of that rate
    of pay.''.

        (b) Effective <<NOTE: 5 USC 5334 note.>>  Date and Savings
    Provision.--(1) The amendment made by subsection (a) shall take effect
    180 days after the date of the enactment of this Act.

        (2) In the case of a person who is employed in a teaching position
    referred to in section 5334(d) of title 5, United States Code, on the
    day before the effective date under paragraph (1), the rate of pay of
    that person determined under that section (as in effect on that day) may
    not be reduced by reason of the amendment made by subsection (a) for so
    long as the person continues to serve in that position or another such
    position without a break in service of more than three days on or after
    that day.

    SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.

        Section 5520a of title 5, United States Code, is amended--
                (1) in subsection (j), by striking out paragraph (2) and
            inserting in lieu thereof the following new paragraph:

        ``(2) Such regulations shall provide that an agency's administrative
    costs in executing a garnishment action may be added to the garnishment,
    and that the agency may retain costs recovered as offsetting
    collections.'';
                (2) in subsection (k)--
                        (A) by striking out paragraph (3); and
                        (B) by redesignating paragraph (4) as paragraph (3);
                    and
                (3) by striking out subsection (l).

    SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY
                AUTHORITY.

        (a) Remittance to CSRS Fund.--Section 5597 of title 5, United States
    Code, is amended by adding at the end the following new subsection:
        ``(h)(1)(A) In addition to any other payment that it is required to
    make under subchapter III of chapter 83 or chapter 84, the Department of
    Defense shall remit to the Office of Personnel Management an amount
    equal to 15 percent of the final basic pay of each covered employee.

    [[Page 111 STAT. 1924]]

        ``(B) If the employee is one with respect to whom a remittance would
    otherwise be required under section 4(a) of the Federal Workforce
    Restructuring Act of 1994 based on the separation involved, the
    remittance under this subsection shall be instead of the remittance
    otherwise required under such section 4(a).
        ``(2) Amounts remitted under paragraph (1) shall be deposited in the
    Treasury of the United States to the credit of the Civil Service
    Retirement and Disability Fund.
        ``(3) For the purposes of this subsection--
                ``(A) the term `covered employee' means an employee who is
            subject to subchapter III of chapter 83 or chapter 84 and to
            whom a voluntary separation incentive has been paid under this
            section on the basis of a separation occurring on or after
            October 1, 1997; and
                ``(B) the term `final basic pay' has the meaning given such
            term in section 4(a)(2) of the Federal Workforce Restructuring
            Act of 1994.''.

        (b) Extension of Authority.--(1) Subsection (e) of section 5597 of
    title 5, United States Code, is amended by striking out ``September 30,
    1999'' and inserting in lieu thereof ``September 30, 2001''.
        (2) Section 4436(d)(2) of the Defense Conversion, Reinvestment, and
    Transition Assistance Act of 1992 (5 U.S.C. 8348 note) is amended by
    striking out ``January 1, 2000'' and inserting in lieu thereof ``January
    1, 2002''.

    SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT
                EMPLOYEES ON OFFICIAL BUSINESS.

        (a) Percentage Use Requirement.--Section 5707a of title 5, United
    States Code, is amended--
                (1) by redesignating subsections (a) through (d) as
            subsections (b) through (e), respectively; and
                (2) by inserting after the section heading the following new
            subsection:

        ``(a)(1) For the purpose of making payments under this chapter for
    lodging expenses incurred in a State, each agency shall ensure that not
    less than 90 percent of the commercial-lodging room nights for employees
    of that agency for a fiscal year are booked in approved places of public
    accommodation.
        ``(2) Each agency <<NOTE: Regulations.>>  shall establish explicit
    procedures to satisfy the percentage requirement of paragraph (1).

        ``(3) An agency shall be considered to be in compliance with the
    percentage requirement of paragraph (1) until September 30, 2002, and
    after that date if travel arrangements of the agency, whether made for
    civilian employees, members of the uniformed services, or foreign
    service personnel, are made through travel management processes designed
    to book commercial lodging in approved places of public accommodation,
    whenever available.''.
        (b) Definitions.--Such section is further amended by adding at the
    end the following new subsection:
        ``(f) For purposes of this section:
                ``(1) The term `agency' does not include the government of
            the District of Columbia.
                ``(2) The term `approved places of public accommodation'
            means hotels, motels, and other places of public accommodation
            that are listed by the Director of the Federal Emergency
            Management Agency as meeting the requirements of the fire

    [[Page 111 STAT. 1925]]

            prevention and control guidelines described in section 29 of the
            Federal Fire Prevention and Control Act of 1974 (15 U.S.C.
            2225).
                ``(3) The term `State' means any State, the District of
            Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
            the Northern Mariana Islands, the Trust Territory of the Pacific
            Islands, the Virgin Islands, Guam, American Samoa, or any other
            territory or possession of the United States.''.

        (c) Conforming Amendments.--Such section is further
    amended--
                (1) in subsection (b), as redesignated by subsection
            (a)(1)--
                        (A) by striking out ``places of public accommodation
                    that meet the requirements of the fire prevention and
                    control guidelines described in section 29 of the
                    Federal Fire Prevention and Control Act of 1974'' and
                    inserting in lieu thereof ``approved places of public
                    accommodation''; and
                        (B) by striking out ``as defined in section 4 of the
                    Federal Fire Prevention and Control Act of 1974'';
                (2) in subsection (c), as redesignated by subsection (a)(1),
            by striking out ``does not meet the requirements of the fire
            prevention and control guidelines described in section 29 of the
            Federal Fire Prevention and Control Act of 1974'' and inserting
            in lieu thereof ``is not an approved place of public
            accommodation''; and
                (3) in subsection (e), as redesignated by subsection
            (a)(1)--
                        (A) by striking out ``encourage'' and inserting in
                    lieu thereof ``facilitate the ability of ''; and
                        (B) by striking out ``places of public accommodation
                    that meet the requirements of the fire prevention and
                    control guidelines described in section 29 of the
                    Federal Fire Prevention and Control Act of 1974'' and
                    inserting in lieu thereof ``approved places of public
                    accommodation''.

        (d) Report by Federal Emergency Management Agency.--Not later than
    six months after the date of the enactment of this Act, the Director of
    the Federal Emergency Management Agency shall submit to Congress a
    report describing the procedures to be used to ensure that all approved
    places of public accommodation (within the meaning of section
    5707a(f)(2) of title 5, United States Code, as added by subsection (b))
    appear on the national master list maintained by the Director under
    section 28(b) of the Federal Fire Prevention and Control Act of 1974 (15
    U.S.C. 2224(b)) of all of the places of public accommodation affecting
    commerce located in each State that meet the requirements of the fire
    prevention and control guidelines described in section 29 of such Act
    (15 U.S.C. 2225).
        (e) Report on Implementation.--Not later than one year after the
    date of the enactment of this Act, the Administrator of General Services
    shall submit to Congress a report describing the measures that have been
    taken and will be taken by Federal agencies to comply with the
    requirement that not less than 90 percent of the commercial-lodging room
    nights for employees of each Federal agency for a fiscal year are booked
    in approved places of public accommodation, as specified in section
    5707a(a) of title 5, United States Code, as added by subsection (a).
    Measures to satisfy such

    [[Page 111 STAT. 1926]]

    requirement may include the use of contract travel agents, automated
    booking systems, and data developed from travel payment systems. The
    Administrator shall prepare the report in consultation with the heads of
    the Federal agencies subject to such requirement.

    SEC. 1108. <<NOTE: 10 USC 5013 note.>>  NAVY HIGHER EDUCATION PILOT
                PROGRAM REGARDING ADMINISTRATION OF BUSINESS RELATIONSHIPS
                BETWEEN GOVERNMENT AND PRIVATE SECTOR.

        (a) Pilot Project Authorized.--During fiscal years 1998 through
    2002, the Secretary of the Navy may establish and conduct a pilot
    program of graduate-level higher education regarding the administration
    of business relationships between the Government and the private sector.
        (b) Purpose.--The purpose of the pilot program is to make available
    to employees of the Naval Undersea Warfare Center, employees of the
    Naval Sea Systems Command, and employees of the Acquisition Center for
    Excellence of the Navy (upon establishment of such Acquisition Center),
    a curriculum of graduate-level higher education leading to the award of
    a graduate degree designed to prepare participants effectively to meet
    the challenges of administering Government contracting and other
    business relationships between the United States and private sector
    businesses in the context of constantly changing or newly emerging
    industries, technologies, governmental organizations, policies, and
    procedures (including governmental organizations, policies, and
    procedures recommended in the National Performance Review).
        (c) Partnership With Institution of Higher Education.--(1) The
    Secretary of the Navy may enter into an agreement with an institution of
    higher education to assist the Naval Undersea Warfare Center with the
    development of the curriculum for the pilot program, to offer courses
    and provide instruction and materials to participants to the extent
    provided for in the agreement, to provide such other assistance in
    support of the program as may be provided for in the agreement, and to
    award a graduate degree under the program.
        (2) To be eligible to enter into an agreement under paragraph (1),
    an institution of higher education must have an established program of
    graduate-level education that is relevant to the purpose of the pilot
    program.
        (d) Curriculum.--The curriculum offered under the pilot
    program shall--
                (1) be designed specifically to achieve the purpose of the
            pilot program; and
                (2) include courses that are--
                        (A) typically offered under curricula leading to
                    award of the degree of Master of Business Administration
                    by institutions of higher education; and
                        (B) necessary for meeting educational qualification
                    requirements for certification as an acquisition program
                    manager.

        (e) Distance Learning Option.--The Secretary of the Navy may include
    as part of the pilot program policies and procedures for offering
    distance learning instruction by means of telecommunications,
    correspondence, or other methods for off-site receipt of instruction.

    [[Page 111 STAT. 1927]]

        (f) Report.--Not later than 90 days after the termination of the
    pilot program, the Secretary of the Navy shall submit to Congress a
    report containing--
                (1) an assessment by the Secretary of the value of the
            program for meeting the purpose of the program and the
            desirability of permanently establishing a similar program for
            other employees of the Department of Defense; and
                (2) such other information and recommendations regarding the
            program as the Secretary considers appropriate.

        (g) Limitation on Funding Source.--Any funds required for the pilot
    program for a fiscal year shall be derived only from the appropriation
    ``Operation and Maintenance, Navy'' for that fiscal year.

    SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY CIVILIAN
                FACULTY MEMBERS.

        (a) Expanded Authority.--Subsections (a) and (c) of section 7478 of
    title 10, United States Code, are amended by striking out ``at the
    Marine Corps Command and Staff College'' and inserting in lieu thereof
    ``of the Marine Corps University''.
        (b) Clerical Amendments.--(1) The heading of such section is amended
    to read as follows:

    ``Sec. 7478. Naval War College and Marine Corps University: civilian
                            faculty members''.

        (2) The item relating to such section in the table of sections at
    the beginning of chapter 643 of such title is amended to read as
    follows:

    ``7478. Naval War College and Marine Corps University: civilian faculty
               members.''.

                  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. Withdrawal of United States ground forces from Republic of
               Bosnia and Herzegovina.
    Sec. 1204. Secretary of Defense reports on tasks carried out by United
               States forces.
    Sec. 1205. Presidential report on situation in Republic of Bosnia and
               Herzegovina.
    Sec. 1206. Definitions.

            Subtitle B--Export Controls on High Performance Computers

    Sec. 1211. Export approvals for high performance computers.
    Sec. 1212. Report on exports of high performance computers.
    Sec. 1213. Post-shipment verification of export of high performance
               computers.
    Sec. 1214. GAO study on certain computers; end user information
               assistance.
    Sec. 1215. Congressional committees.

                            Subtitle C--Other Matters

    Sec. 1221. Defense burdensharing.
    Sec. 1222. Temporary use of general purpose vehicles and nonlethal
               military equipment under acquisition and cross servicing
               agreements.
    Sec. 1223. Sense of Congress and reports regarding financial costs of
               enlargement of the North Atlantic Treaty Organization.
    Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic
               Treaty Organization.
    Sec. 1225. Sense of the Congress relating to level of United States
               military personnel in the East Asia and Pacific region.
    Sec. 1226. Report on future military capabilities and strategy of the
               People's
               Republic of China.

    [[Page 111 STAT. 1928]]

    Sec. 1227. Sense of Congress on need for Russian openness on the
               Yamantau Mountain project.
    Sec. 1228. Assessment of the Cuban threat to United States national
               security.
    Sec. 1229. Report on Helsinki Joint Statement.
    Sec. 1230. Commendation of Mexico on free and fair elections.
    Sec. 1231. Sense of Congress regarding Cambodia.
    Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

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

    SEC. 1201. FINDINGS.

        The Congress finds the following:
                (1) United States Armed Forces were deployed to the Republic
            of Bosnia and Herzegovina as part of the North Atlantic Treaty
            Organization (NATO) Implementation Force (IFOR) to implement the
            military aspects of the Dayton Peace Agreement.
                (2) The military aspects of the Dayton Peace Agreement have
            been successfully implemented to date with the military forces
            of the warring factions successfully separated and a cessation
            in the hostilities that resulted in the deaths of hundreds of
            thousands of Bosnians.
                (3) Implementation of the civil aspects of the Dayton Peace
            Agreement has lagged far behind the schedule for such
            implementation envisioned in the Agreement with the result that
            United States Armed Forces have undertaken a prolonged
            engagement in the Republic of Bosnia and Herzegovina.
                (4) On December 13, 1995, the President stated in a letter
            to Congress, ``NATO and U.S. military commanders believe, and I
            expect, that the military mission can be accomplished in about a
            year. Twelve months will allow IFOR time to complete the
            military tasks assigned in the Dayton agreement and to establish
            a secure environment, in which political and economic
            reconstruction efforts by the parties and international civilian
            agencies can take hold. Within one year, we expect that the
            military provisions of the Dayton agreement will have been
            carried out, implementation of the civilian aspects and economic
            reconstruction will have been firmly launched, free elections
            will have been held under international supervision and a stable
            military balance will have been established.''
                (5) Notwithstanding a number of assurances relating to the
            accomplishment of the military mission in the Republic of Bosnia
            and Herzegovina by December 1996, the President, on November 15,
            1996, announced his decision to extend the presence of United
            States forces in the Republic of Bosnia and Herzegovina to
            participate in the NATO Stabilization Force (SFOR) until June
            1998.
                (6) Despite initial projections by the Department of Defense
            that the costs of United States operations in the Republic of
            Bosnia and Herzegovina would total $1,500,000,000, the projected
            cost of United States operations in the Republic of Bosnia and
            Herzegovina through June 1998 is estimated to exceed
            $7,000,000,000.
                (7) The fiscal year 1998 estimate of the Department of
            Defense for operations in the Republic of Bosnia and

    [[Page 111 STAT. 1929]]

            Herzegovina assumes that the level of military forces
            participating in SFOR will be reduced soon after the start of
            the fiscal year.
                (8) The President and the Secretary of Defense have stated
            that United States forces are to be withdrawn from the Republic
            of Bosnia and Herzegovina by the end of June 1998.

    SEC. 1202. SENSE OF CONGRESS.

        It is the sense of Congress that--
                (1) United States ground combat forces should not
            participate in a follow-on force in the Republic of Bosnia and
            Herzegovina after June 1998;
                (2) the European Security and Defense Identity, which, as
            facilitated by the Combined Joint Task Forces concept, enables
            the Western European Union, with the consent of the North
            Atlantic Alliance, to assume political control and strategic
            direction of NATO assets made available for the Alliance, may be
            an ideal instrument for a follow-on force for the Republic of
            Bosnia and Herzegovina;
                (3) a NATO-led force without the participation of United
            States ground combat forces in the Republic of Bosnia and
            Herzegovina may be suitable for a follow-on force for the
            Republic of Bosnia and Herzegovina if the European Security and
            Defense Identity is not sufficiently developed or is otherwise
            considered inappropriate for such a mission;
                (4) the United States may decide to provide appropriate
            support to a Western European Union-led or NATO-led follow-on
            force, including command and control, intelligence, logistics,
            and, if necessary, a ready reserve force in the region;
                (5) the President should inform our European NATO allies of
            this expression of the sense of Congress and should urge them
            strongly to undertake preparations for a Western European Union-
            led or NATO-led force as a follow-on force to the NATO-led SFOR
            if needed to maintain peace and stability in the Republic of
            Bosnia and Herzegovina; and
                (6) the President should consult with the Congress with
            respect to any support to be provided to a Western European
            Union-led or NATO-led follow-on force in the Republic of Bosnia
            and Herzegovina after June 30, 1998.

    SEC. 1203. <<NOTE: 10 USC 114 note.>>  WITHDRAWAL OF UNITED STATES
                GROUND FORCES FROM REPUBLIC OF BOSNIA AND HERZEGOVINA .

        (a) Limitation.--No funds appropriated or otherwise made available
    for the Department of Defense for fiscal year 1998 or any subsequent
    fiscal year may be used for the deployment of any United States ground
    combat forces in the Republic of Bosnia and Herzegovina after June 30,
    1998, unless the President, not later than May 15, 1998, and after
    consultation with the bipartisan leadership of the two Houses of
    Congress, transmits to Congress a certification--
                (1) that the continued presence of United States ground
            combat forces, after June 30, 1998, in the Republic of Bosnia
            and Herzegovina is required in order to meet the national
            security interests of the United States; and
                (2) that after June 30, 1998, it will remain United States
            policy that United States ground forces will not serve as, or be
            used as, civil police in the Republic of Bosnia and Herzegovina.

    [[Page 111 STAT. 1930]]

        (b) Report.--The <<NOTE: President.>>  President shall submit with
    the certification under subsection (a) a report that includes the
    following:
                (1) The reasons why that presence is in the national
            security interest of the United States.
                (2) The number of United States military personnel to be
            deployed in and around the Republic of Bosnia and Herzegovina
            and other areas of the former Yugoslavia after that date.
                (3) The expected duration of any such deployment.
                (4) The mission and objectives of the United States Armed
            Forces to be deployed in and around the Republic of Bosnia and
            Herzegovina and other areas of the former Yugoslavia after June
            30, 1998.
                (5) The exit strategy of such forces.
                (6) The incremental costs associated with any such
            deployment.
                (7) The effect of such deployment on the morale, retention,
            and effectiveness of United States armed forces.
                (8) A description of the forces from other nations involved
            in a follow-on mission, shown on a nation-by-nation basis.
                (9) A description of the command and control arrangement
            established for United States forces involved in a follow-on
            mission.
                (10) An assessment of the expected threats to United States
            forces involved in a follow-on mission.
                (11) The plan for rotating units and personnel to and from
            the Republic of Bosnia and Herzegovina during a follow-on
            mission, including the level of participation by reserve
            component units and personnel.
                (12) The mission statement and operational goals of the
            United States forces involved in a follow-on mission.

        (c) Request for Supplemental Appropriations.--The President shall
    transmit to Congress with a certification under subsection (a) a
    supplemental appropriations request for the Department of Defense for
    such amounts as are necessary for the costs of any continued deployment
    beyond June 30, 1998.
        (d) Construction With President's Constitutional Authority.--Nothing
    in this section shall be deemed to restrict the authority of the
    President under the Constitution to protect the lives of United States
    citizens.
        (e) Construction With Appropriations Provision.--The provisions of
    this section are enacted, and shall be applied, as supplemental to (and
    not in lieu of) the provisions of section 8132 of the Department of
    Defense Appropriations Act, 1998 (Public Law 105-56).

    SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT BY UNITED
                STATES FORCES.

        (a) Requirement for Two Reports.--The Secretary of Defense shall
    submit to the congressional defense committees--
                (1) not later than December 15, 1997, a report identifying
            each activity being carried out, as of December 1, 1997, by
            covered United States forces in the Republic of Bosnia and
            Herzegovina; and
                (2) not later than April 15, 1998, a report identifying each
            activity being carried out, as of April 1, 1998, by covered
            United States forces in the Republic of Bosnia and Herzegovina.

    [[Page 111 STAT. 1931]]

        (b) Covered United States Forces.--For purposes of this section,
    covered United States forces in the Republic of Bosnia and Herzegovina
    are United States ground forces in the Republic of Bosnia and
    Herzegovina that are assigned to the multinational peacekeeping force
    known as the Stabilization Force (SFOR) or any other multinational
    peacekeeping force that is the successor to the SFOR.
        (c) Matters To Be Included.--The Secretary shall include in each
    report under subsection (a), for each activity identified under that
    subsection, the following:
                (1) The number of United States military personnel involved
            in the performance of that activity.
                (2) Whether forces assigned to the SFOR (or successor
            multinational peacekeeping force) from other nations also
            participated in that activity.
                (3) The justification for using military forces rather than
            civilian organizations to perform that activity.
                (4) In the case of activities that (as determined by the
            Secretary) are considered to be supporting tasks, as that term
            is used in paragraph 3 of Article VI of Annex 1-A to the General
            Framework Agreement for Peace in Bosnia and Herzegovina, the
            justification for using military forces.
                (5) The likelihood that each such activity will have to be
            carried out by United States military forces after June 30,
            1998.

    SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF BOSNIA AND
                HERZEGOVINA.

        (a) Requirement.--Not later than February 1, 1998, the President
    shall submit to Congress a report on the political and military
    conditions in the Republic of Bosnia and Herzegovina. The report shall
    be submitted in both classified and unclassified form.
        (b) Matters To Be Included.--The report under subsection (a) shall
    include a discussion of the following:
                (1) An assessment of the progress made in implementing the
            civil, economic, and political aspects of the Dayton Peace
            Agreement.
                (2) An identification of the specific steps taken to
            transfer the United States portion of the peacekeeping mission
            in the Republic of Bosnia and Herzegovina to forces of the
            member-states of the Western European Union or to a NATO-led
            force without the participation of United States ground combat
            forces in the Republic of Bosnia and Herzegovina.
                (3) A detailed discussion of the proposed role and
            involvement of the United States in supporting peacekeeping
            activities in the Republic of Bosnia and Herzegovina following
            the withdrawal of United States ground combat forces from the
            Republic of Bosnia and Herzegovina.
                (4) A detailed explanation and timetable for carrying out
            the commitment to withdraw all United States ground forces from
            the Republic of Bosnia and Herzegovina by June 30, 1998,
            including the planned date of commencement and completion of the
            withdrawal.
                (5) The military and political considerations that will
            affect the decision to carry out such a transition.
                (6) Any plan to maintain or expand other Bosnia-related
            operations (such as the operations designated as Operation

    [[Page 111 STAT. 1932]]

            Deliberate Guard) if tensions in the Republic of Bosnia and
            Herzegovina remain sufficient to delay reductions of United
            States military forces participating in the Stabilization Force
            and the estimated cost associated with each such operation.

    SEC. 1206. DEFINITIONS. <<NOTE: 10 USC 114 note.>>

        As used in this subtitle:
                (1) Dayton peace agreement.--The term ``Dayton Peace
            Agreement'' 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) Implementation force.--The term ``Implementation Force''
            means the NATO-led multinational military force in the Republic
            of Bosnia and Herzegovina (commonly referred to as ``IFOR''),
            authorized under the Dayton Peace Agreement.
                (3) Stabilization force.--The term ``Stabilization Force''
            means the NATO-led follow-on force to the Implementation Force
            in the Republic of Bosnia and Herzegovina and other countries in
            the region (commonly referred to as ``SFOR''), authorized under
            United Nations Security Council Resolution 1088 (December 12,
            1996).
                (4) Follow-on mission.--The term ``follow-on mission'' means
            a mission involving the deployment of ground elements of the
            United States Armed Forces in the Republic of Bosnia and
            Herzegovina after June 30, 1998 (other than as described in
            section 1203(b)).
                (5) NATO.--The term ``NATO'' means the North Atlantic Treaty
            Organization.

     Subtitle B--Export <<NOTE: 50 USC app. 2404 note.>>  Controls on High
    Performance Computers

    SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE
                COMPUTERS.

        (a) Prior <<NOTE: President.>>  Approval of Exports and Reexports.--
    The President shall require that no digital computer with a composite
    theoretical performance level of more than 2,000 millions of theoretical
    operations per second (MTOPS) or with such other composite theoretical
    performance level as may be established subsequently by the President
    under subsection (d), may be exported or reexported without a license to
    a country specified in subsection (b) if the Secretary of Commerce, the
    Secretary of Defense, the Secretary of Energy, the Secretary of State,
    or the Director of the Arms Control and Disarmament Agency objects, in
    writing, to such export or reexport. Any person proposing to export or
    reexport such a digital computer shall so notify the Secretary of
    Commerce, who, within 24 hours after receiving the notification, shall
    transmit the notification to the Secretary of Defense, the Secretary of
    Energy, the Secretary of State, and the Director of the Arms Control and
    Disarmament Agency.

        (b) Covered Countries.--For purposes of subsection (a), the
    countries specified in this subsection are the countries listed as
    ``Computer Tier 3'' eligible countries in section 740.7(d) of title 15
    of the Code of Federal Regulations, as in effect on June 10,

    [[Page 111 STAT. 1933]]

    1997, subject to modification by the President under subsection (e).
        (c) Time Limit.--Written objections under subsection (a) to an
    export or reexport shall be raised within 10 days after the notification
    is received under subsection (a). If such a written objection to the
    export or reexport of a computer is raised, the computer may be exported
    or reexported only pursuant to a license issued by the Secretary of
    Commerce under the Export Administration Regulations of the Department
    of Commerce, without regard to the licensing exceptions otherwise
    authorized under section 740.7 of title 15 of the Code of Federal
    Regulations, as in effect on June 10, 1997. If no objection is raised
    within the 10-day period, the export or reexport is authorized.
        (d) Adjustment of Composite Theoretical Performance.--The
    President, <<NOTE: President.>>  in consultation with the Secretary of
    Commerce, the Secretary of Defense, the Secretary of Energy, the
    Secretary of State, and the Director of the Arms Control and Disarmament
    Agency, may establish a new composite theoretical performance level for
    purposes of subsection (a). Such new level shall not take effect until
    180 days after the President submits to the congressional committees
    designated in section 1215 a report setting forth the new composite
    theoretical performance level and the justification for such new level.
    Each report shall, at a minimum--
                (1) address the extent to which high performance computers
            of a composite theoretical level between the level established
            in subsection (a) or such level as has been previously adjusted
            pursuant to this section and the new level, are available from
            other countries;
                (2) address all potential uses of military significance to
            which high performance computers at the new level could be
            applied; and
                (3) assess the impact of such uses on the national security
            interests of the United States.

        (e) Adjustment of Covered Countries.--
                (1) In general.--The President, <<NOTE: President.>>  in
            consultation with the Secretary of Commerce, the Secretary of
            Defense, the Secretary of Energy, the Secretary of State, and
            the Director of the Arms Control and Disarmament Agency, may add
            a country to or remove a country from the list of covered
            countries in subsection (b), except that a country may be
            removed from the list only in accordance with paragraph (2).
                (2) Deletions from list of covered countries.--The removal
            of a country from the list of covered countries under subsection
            (b) shall not take effect until 120 days after the President
            submits to the congressional committees designated in section
            1215 a report setting forth the justification for the deletion.
                (3) Excluded countries.--A country may not be removed from
            the list of covered countries under subsection (b) if--
                        (A) the country is a ``nuclear-weapon state'' (as
                    defined by Article IX of the Treaty on the Non-
                    Proliferation of Nuclear Weapons) and the country is not
                    a member of the North Atlantic Treaty Organization; or
                        (B) the country is not a signatory of the Treaty on
                    the Non-Proliferation of Nuclear Weapons and the country
                    is listed on Annex 2 to the Comprehensive Nuclear Test-
                    Ban Treaty.

    [[Page 111 STAT. 1934]]

        (f) Classification.--Each report under subsections (d) and (e) shall
    be submitted in an unclassified form and may, if necessary, have a
    classified supplement.

    SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

        (a) Report.--Not later than 60 days after the date of the enactment
    of this Act, the President shall provide to the congressional committees
    specified in section 1215 a report identifying all exports of digital
    computers with a composite theoretical performance of more than 2,000
    millions of theoretical operations per second (MTOPS) to all countries
    since January 25, 1996. For each export, the report shall identify--
                (1) whether an export license was applied for and whether
            one was granted;
                (2) the date of the transfer of the computer;
                (3) the United States manufacturer and exporter of the
            computer;
                (4) the MTOPS level of the computer; and
                (5) the recipient country and end user.

        (b) Additional Information on Exports to Certain Countries.--In the
    case of exports to countries specified in subsection (c), the report
    under subsection (a) shall identify the intended end use for the
    exported computer and the assessment by the executive branch of whether
    the end user is a military end user or an end user involved in
    activities relating to nuclear, chemical, or biological weapons or
    missile technology. Information provided under this subsection may be
    submitted in classified form if necessary.
        (c) Covered Countries.--For purposes of subsection (b), the
    countries specified in this subsection are--
                (1) the countries listed as ``Computer Tier 3'' eligible
            countries in section 740.7(d) of title 15 of the Code of Federal
            Regulations, as in effect on June 10, 1997; and
                (2) the countries listed in section 740.7(e) of title 15 of
            the Code of Federal Regulations, as in effect on June 10, 1997.

    SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE
                COMPUTERS.

        (a) Required Post-Shipment Verification.--The Secretary of Commerce
    shall conduct post-shipment verification of each digital computer with a
    composite theoretical performance of more than 2,000 millions of
    theoretical operations per second (MTOPS) that is exported from the
    United States, on or after the date of the enactment of this Act, to a
    country specified in subsection (b).
        (b) Covered Countries.--For purposes of subsection (a), the
    countries specified in this subsection are the countries listed as
    ``Computer Tier 3'' eligible countries in section 740.7 of title 15 of
    the Code of Federal Regulations, as in effect on June 10, 1997, subject
    to modification by the President under section 1211(e).
        (c) Annual Report.--The Secretary of Commerce shall submit to the
    congressional committees specified in section 1215 an annual report on
    the results of post-shipment verifications conducted under this section
    during the preceding year. Each such report shall include a list of all
    such items exported from the United States to such countries during the
    previous year and, with respect to each such export, the following:
                (1) The destination country.

    [[Page 111 STAT. 1935]]

                (2) The date of export.
                (3) The intended end use and intended end user.
                (4) The results of the post-shipment verification.

        (d) Explanation When Verification Not Conducted.--If a post-shipment
    verification has not been conducted in accordance with subsection (a)
    with respect to any such export during the period covered by a report,
    the Secretary shall include in the report for that period a detailed
    explanation of the reasons why such a post-shipment verification was not
    conducted.

    SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION
                ASSISTANCE.

        (a) In General.--The Comptroller General of the United States shall
    submit to the congressional committees specified in section 1215 a study
    of the national security risks relating to the sale of computers with a
    composite theoretical performance of between 2,000 and 7,000 millions of
    theoretical operations per second (MTOPS) to end users in countries
    specified in subsection (c). The study shall also analyze any foreign
    availability of computers described in the preceding sentence and the
    impact of such sales on United States exporters.
        (b) End User Information Assistance to Exporters.--The Secretary of
    Commerce shall establish a procedure by which exporters may seek
    information on questionable end users in countries specified in
    subsection (c) who are seeking to obtain computers described in
    subsection (a).
        (c) Covered Countries.--For purposes of subsections (a) and (b), the
    countries specified in this subsection are the countries listed as
    ``Computer Tier 3'' eligible countries in section 740.7(d) of title 15
    of the Code of Federal Regulations, as in effect on June 10, 1997.

    SEC. 1215. CONGRESSIONAL COMMITTEES.

        For purposes of sections 1211(d), 1212(a), 1213(c), and 1214(a) the
    congressional committees specified in those sections are the following:
                (1) The Committee on Banking, Housing, and Urban Affairs and
            the Committee on Armed Services of the Senate.
                (2) The Committee on International Relations and the
            Committee on National Security of the House of Representatives.

                            Subtitle C--Other Matters

    SEC. 1221. DEFENSE <<NOTE: 22 USC 1928 note.>>  BURDENSHARING.

        (a) Efforts To Increase Allied Burdensharing.--The President shall
    seek to have each nation that has cooperative military relations with
    the United States (including security agreements, basing arrangements,
    or mutual participation in multinational military organizations or
    operations) take one or more of the following actions:
                (1) For any nation in which United States military personnel
            are assigned to permanent duty ashore, increase its financial
            contributions to the payment of the nonpersonnel costs incurred
            by the United States Government for stationing United States
            military personnel in that nation, with a goal of achieving by
            September 30, 2000, 75 percent of such costs. An increase

    [[Page 111 STAT. 1936]]

            in financial contributions by any nation under this paragraph
            may include the elimination of taxes, fees, or other charges
            levied on United States military personnel, equipment, or
            facilities stationed in that nation.
                (2) Increase its annual budgetary outlays for national
            defense as a percentage of its gross domestic product by 10
            percent or at least to a level commensurate to that of the
            United States by September 30, 1998.
                (3) Increase its annual budgetary outlays for foreign
            assistance (to promote democratization, economic stabilization,
            transparency arrangements, defense economic conversion, respect
            for the rule of law, and internationally recognized human
            rights) by 10 percent or at least to a level commensurate to
            that of the United States by September 30, 1998.
                (4) Increase the amount of military assets (including
            personnel, equipment, logistics, support and other resources)
            that it contributes, or would be prepared to contribute, to
            multinational military activities worldwide.

        (b) Authorities To Encourage Actions by United States Allies.--In
    seeking the actions described in subsection (a) with respect to any
    nation, or in response to a failure by any nation to undertake one or
    more of such actions, the President may take any of the following
    measures to the extent otherwise authorized by law:
                (1) Reduce the end strength level of members of the Armed
            Forces assigned to permanent duty ashore in that nation.
                (2) Impose on that nation fees or other charges similar to
            those that such nation imposes on United States forces stationed
            in that nation.
                (3) Reduce (through rescission, impoundment, or other
            appropriate procedures as authorized by law) the amount the
            United States contributes to the NATO Civil Budget, Military
            Budget, or Security Investment Program.
                (4) Suspend, modify, or terminate any bilateral security
            agreement the United States has with that nation, consistent
            with the terms of such agreement.
                (5) Reduce (through rescission, impoundment or other
            appropriate procedures as authorized by law) any United States
            bilateral assistance appropriated for that nation.
                (6) Take any other action the President determines to be
            appropriate as authorized by law.

        (c) Report on Progress in Increasing Allied Burdensharing.--Not
    later than March 1, 1998, the Secretary of Defense shall submit to
    Congress a report on--
                (1) steps taken by other nations to complete the actions
            described in subsection (a);
                (2) all measures taken by the President, including those
            authorized in subsection (b), to achieve the actions described
            in subsection (a);
                (3) the difference between the amount allocated by other
            nations for each of the actions described in subsection (a)
            during the period beginning on March 1, 1996, and ending on
            February 28, 1997, and during the period beginning on March 1,
            1997, and ending on February 28, 1998; and
                (4) the budgetary savings to the United States that are
            expected to accrue as a result of the steps described under
            paragraph (1).

    [[Page 111 STAT. 1937]]

        (d) Report on National Security Bases for Forward Deployment and
    Burdensharing Relationships.--(1) In order to ensure the best allocation
    of budgetary resources, the President shall undertake a review of the
    status of elements of the
    United States Armed Forces that are permanently stationed outside the
    United States. The review shall include an assessment of the following:
                (A) The alliance requirements that are to be found in
            agreements between the United States and other countries.
                (B) The national security interests that support permanently
            stationing elements of the United States Armed Forces outside
            the United States.
                (C) The stationing costs associated with the forward
            deployment of elements of the United States Armed Forces.
                (D) The alternatives available to forward deployment (such
            as material prepositioning, enhanced airlift and sealift, or
            joint training operations) to meet such alliance requirements or
            national security interests, with such alternatives identified
            and described in detail.
                (E) The costs and force structure configurations associated
            with such alternatives to forward deployment.
                (F) The financial contributions that allies of the United
            States make to common defense efforts (to promote
            democratization, economic stabilization, transparency
            arrangements, defense economic conversion, respect for the rule
            of law, and internationally recognized human rights).
                (G) The contributions that allies of the United States make
            to meeting the stationing costs associated with the forward
            deployment of elements of the United States Armed Forces.
                (H) The annual expenditures of the United States and its
            allies on national defense, and the relative percentages of each
            nation's gross domestic product constituted by those
            expenditures.

        (2) The <<NOTE: President.>>  President shall submit to Congress a
    report on the review under paragraph (1). The report shall be submitted
    not later than March 1, 1998, in classified and unclassified form.

    SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL
                MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS SERVICING
                AGREEMENTS.

        Section 2350(1) of title 10, United States Code, is amended by
    striking out ``other items'' in the second sentence and all that follows
    through ``United States Munitions List'' and inserting in lieu thereof
    ``other nonlethal items of military equipment which are not designated
    as significant military equipment on the United States Munitions List
    promulgated''.

    SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL COSTS OF
                ENLARGEMENT OF THE NORTH ATLANTIC TREATY ORGANIZATION.

        (a) Findings.--Congress finds the following:
                (1) In a report to Congress in February 1997 on the
            rationale, benefits, costs, and implications of North Atlantic
            Treaty Organization enlargement the Secretary of Defense
            estimated that the financial cost to the United States of such
            enlargement will be modest, totaling between $2,000,000,000 and
            $2,600,000,000 for the period from 1997 through 2009.

    [[Page 111 STAT. 1938]]

                (2) A study by the RAND Corporation published in 1996
            calculated that the total financial cost to the United States of
            such enlargement will be between $5,000,000,000 and
            $6,000,000,000 over the same period.
                (3) A March 1996 report by the Congressional Budget Office
            on the financial costs of enlarging the North Atlantic Treaty
            Organization alliance estimated the United States share of
            alliance enlargement costs to be between $4,800,000,000 and
            $18,900,000,000 through 2010, depending upon political
            developments in Europe.
                (4) An August 1997 report by the General Accounting Office
            reviewing the financial cost estimates of the Secretary of
            Defense concluded that North Atlantic Treaty Organization
            enlargement could entail additional costs beyond those included
            in the Secretary's estimate and questioned the validity of the
            Secretary's estimate due to the lack of supporting cost
            documentation and the inclusion of cost elements not related to
            NATO enlargement.
                (5) The North Atlantic Alliance is scheduled to complete its
            analysis of the military requirements for the integration of
            Poland, the Czech Republic, and Hungary into the Alliance in
            December 1997.
                (6) The North Atlantic Alliance is also scheduled to
            complete in December 1997 its financial cost estimate of the
            military requirements related to the integration of those
            nations.

        (b) Sense of Congress.--It is the sense of Congress that the
    analysis of the North Atlantic Alliance of the military requirements
    relating to NATO enlargement and of the financial costs to the Alliance
    of NATO enlargement will be one of the major factors in the
    consideration by the Senate of the ratification of instruments to
    approve the admission of new member nations to the Alliance and by
    Congress for the authorization and appropriation of the funding for the
    costs associated with such enlargement.
        (c) Report Assessing NATO Cost Analysis.--Not later than March 31,
    1998, the Secretary of Defense shall submit to Congress a report
    providing--
                (1) an assessment of the analysis by the North Atlantic
            Alliance of the military requirements related to NATO
            enlargement and of the estimate of the financial costs to the
            NATO Alliance for the integration of Poland, the Czech Republic,
            and Hungary into the Alliance;
                (2) a description of the analytical means used to determine
            such requirements and costs; and
                (3) a general assessment of the additional military
            requirements and costs that would result from a significantly
            increased threat.

        (d) Report on Department of Defense Costs.--(1) The Secretary of
    Defense shall submit to Congress, in conjunction with the submission of
    the President's budget for fiscal year 1999, a report on Department of
    Defense costs for NATO enlargement. The report shall include a detailed
    estimate of such costs for fiscal year 1998 that identifies all
    appropriations, by budget activity, for the military departments and
    other elements of the Department of Defense to support NATO enlargement.
        (2) The Secretary of Defense shall include in the budget
    justification materials submitted to Congress by the Secretary in
    support of the budget of Department of Defense for fiscal year 1999

    [[Page 111 STAT. 1939]]

    complete and detailed descriptions and estimates of the amounts provided
    in that budget for the costs of NATO enlargement.

    SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE NORTH ATLANTIC
                TREATY ORGANIZATION.

        (a) Findings.--Congress makes the following findings:
                (1) The North Atlantic Treaty Organization (NATO) met on
            July 8 and 9, 1997, in Madrid, Spain, and issued invitations to
            the Czech Republic, Hungary, and Poland to begin accession talks
            to join NATO.
                (2) Congress has expressed its support for the process of
            NATO enlargement by approving the NATO Enlargement Facilitation
            Act of 1996 (title VI of the matter enacted in section 101(c) of
            division A of Public Law 104-208; 22 U.S.C. 1928 note).
                (3) The United States has supported the position that the
            process of enlarging NATO will continue after the first round of
            invitations in July 1997.
                (4) Romania and Slovenia are to be commended for their
            progress toward political and economic reform and appear to be
            striving to meet the guidelines for prospective membership in
            NATO.
                (5) In furthering the purpose and objective of NATO in
            promoting stability and well-being in the North Atlantic area,
            NATO should invite Romania and Slovenia to accession
            negotiations to become NATO members as expeditiously as possible
            upon the satisfaction of all relevant membership criteria and
            consistent with NATO security objectives.

        (b) Sense of Congress.--It is the sense of Congress that North
    Atlantic Treaty Organization should be commended--
                (1) for having committed to review the process of enlarging
            the Organization in 1999; and
                (2) for singling out the positive developments toward
            democracy and rule of law in Romania and Slovenia.

    SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES MILITARY
                PERSONNEL IN THE EAST ASIA AND PACIFIC REGION.

        (a) Findings.--Congress finds the following:
                (1) The stability of the Asia-Pacific region is a matter of
            vital national interest affecting the well-being of all
            Americans.
                (2) The nations of the Pacific Rim collectively represent
            the United States largest trading partner and are expected to
            account for almost one-third of the world's economic activity by
            the start of the next century.
                (3) The increased reliance by the United States on trade and
            Middle East oil sources has reinforced United States security
            interests in the Southeast Asia shipping lanes through the South
            China Sea and the key straits of Malacca, Sunda, Lombok, and
            Makassar.
                (4) The South China Sea is an important area for United
            States Navy ships passing from the Pacific to the Indian Ocean
            and the Persian Gulf.
                (5) Maintaining freedom of navigation in the South China Sea
            is an important interest of the United States.
                (6) The threats of proliferation of weapons of mass
            destruction, the emerging nationalism amidst long-standing
            ethnic

    [[Page 111 STAT. 1940]]

            and national rivalries, and the unresolved territorial disputes
            combine to create a political landscape of potential instability
            and conflict in this region that could jeopardize the interests
            of the United States and the safety of United States nationals.
                (7) A critical component of the East Asia strategy of the
            United States is maintaining forward deployed forces in Asia to
            ensure broad regional stability, to help to deter aggression, to
            lessen the pressure for arms races, and to contribute to the
            political and economic advances of the region from which the
            United States benefits.
                (8) The forward presence of the United States in Northeast
            Asia enables the United States to respond to regional
            contingencies, to protect sea lines of communication, to sustain
            influence, and to support operations as distant as operations in
            the Persian Gulf.
                (9) The military forces of the United States serve to
            prevent the political or economic control of the Asia-Pacific
            region by a rival, hostile power or coalition of such powers,
            thus preventing any such group from obtaining control over the
            vast resources, enormous wealth, and advanced technology of the
            region.
                (10) Allies of the United States in the region can base
            their defense planning on a reliable American security
            commitment, a reduction of which could stimulate an arms buildup
            in the region.
                (11) The Joint Announcement of the United States-Japan
            Security Consultative Committee of December 1996, acknowledged
            that ``the forward presence of U.S. forces continues to be an
            essential element for pursuing our common security objectives''.
                (12) The United States and Japan signed the United States-
            Japan Security Declaration in April 1996, in which the United
            States reaffirmed its commitment to maintain this level of
            100,000 United States military personnel in the region.
                (13) The United States military presence is recognized by
            the nations of the region as serving stability and enabling
            United States engagement.
                (14) The nations of East Asia and the Pacific consider the
            commitment of the forces of the United States to be so vital to
            their future that they scrutinize actions of the United States
            for any sign of weakened commitment to the security of the
            region.
                (15) The reduction of forward-based military forces could
            negatively affect the ability of the United States to contribute
            to the maintenance of peace and stability of the Asia and
            Pacific region.
                (16) Recognizing that while the United States must consider
            the overall capabilities of its forces in its decisions to
            deploy troops, nevertheless any reduction in the number of
            forward-based troops may reduce the perception of American
            capability and commitment in the region that cannot be
            completely offset by modernization of the remaining forces.
                (17) During time of crisis, deployment of forces to East
            Asia, even though such forces were previously removed from the
            area, might be deemed to be an act of provocation that

    [[Page 111 STAT. 1941]]

            could be used as a pretext by a hostile power for armed
            aggression within the region, and the existence of that
            possibility might hinder such a deployment.
                (18) Proposals to reduce the forward presence of the United
            States in the East Asia region or subordinate security interests
            to United States domestic budgetary concerns can erode the
            perception of the commitment of the United States to its
            alliances and interests in the region.

        (b) Sense of Congress.--It is the sense of Congress that the United
    States should maintain at least approximately 100,000 United States
    military personnel in the East Asia and Pacific region until such time
    as there is a peaceful and permanent resolution to the major security
    and political conflicts in the region.

    SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND
                STRATEGY OF THE PEOPLE'S REPUBLIC OF CHINA.

        (a) Report.--The Secretary of Defense shall prepare a report, in
    both classified and unclassified form, on the pattern of military
    modernization of the People's Republic of China. The report shall
    address the probable course of military-technological development in the
    People's Liberation Army and the development of Chinese security
    strategy and military strategy, and of military organizations and
    operational concepts, through 2015.
        (b) Matters To Be Included.--The report shall include analyses and
    forecasts of the following:
                (1) The goals of Chinese security strategy and military
            strategy.
                (2) Trends in Chinese strategy regarding the political goals
            of the People's Republic of China in the Asia-Pacific region and
            its political and military presence in other regions of the
            world, including Central Asia, Southwest Asia, Europe, and Latin
            America.
                (3) Developments in Chinese military doctrine, focusing on
            (but not limited to) efforts to exploit an emerging Revolution
            in Military Affairs or to conduct preemptive strikes.
                (4) Efforts by the People's Republic of China to enhance its
            capabilities in the area of nuclear weapons development.
                (5) Efforts by the People's Republic of China to develop
            long-range air-to-air or air defense missiles that would provide
            the capability to target special support aircraft such as
            Airborne Warning and Control System (AWACS) aircraft, Joint
            Surveillance and Target Attack Radar System (JSTARS) aircraft,
            or other command and control, intelligence, airborne early
            warning, or electronic warfare aircraft.
                (6) Efforts by the People's Republic of China to develop a
            capability to conduct ``information warfare'' at the strategic,
            operational, and tactical levels of war.
                (7) Development by the People's Republic of China of
            capabilities in the area of electronic warfare.
                (8) Efforts by the People's Republic of China to develop a
            capability to establish control of space or to deny access and
            use of military and commercial space systems in times of crisis
            or war, including programs to place weapons in space or to
            develop earth-based weapons capable of attacking space-based
            systems.
                (9) Trends that would lead the People's Republic of China
            toward the development of advanced intelligence, surveillance,

    [[Page 111 STAT. 1942]]

            and reconnaissance capabilities, including gaining access to
            commercial or third-party systems with military significance.
                (10) Efforts by the People's Republic of China to develop
            highly accurate and stealthy ballistic and cruise missiles,
            including sea-launched cruise missiles, particularly in numbers
            sufficient to conduct attacks capable of overwhelming projected
            defense capabilities in the Asia-Pacific region.
                (11) Development by the People's Republic of China of
            command and control networks, particularly those capable of
            battle management of long-range precision strikes.
                (12) Efforts by the People's Republic of China in the area
            of telecommunications, including common channel signaling and
            synchronous digital hierarchy technologies.
                (13) Development by People's Republic of China of advanced
            aerospace technologies with military applications (including gas
            turbine ``hot section'' technologies).
                (14) Programs of the People's Republic of China involving
            unmanned aerial vehicles, particularly those with extended
            ranges or loitering times or potential strike capabilities.
                (15) Exploitation by the People's Republic of China for
            military purposes of the Global Positioning System or other
            similar systems (including commercial land surveillance
            satellites), with such analysis and forecasts focusing
            particularly on indications of an attempt to increase the
            accuracy of weapons or situational awareness of operating
            forces.
                (16) Development by the People's Republic of China of
            capabilities for denial of sea control, including such systems
            as advanced sea mines, improved submarine capabilities, or land-
            based sea-denial systems.
                (17) Efforts by the People's Republic of China to develop
            its anti-submarine warfare capabilities.
                (18) Continued development by the People's Republic of China
            of follow-on forces, particularly forces capable of rapid air or
            amphibious assault.
                (19) Efforts by the People's Republic of China to enhance
            its capabilities in such additional areas of strategic concern
            as the Secretary identifies.

        (c) Analysis of Implications of Sales of Products and Technologies
    to Entities in China.--The report under subsection (a) shall include,
    with respect to each area for analyses and forecasts specified in
    subsection (b)--
                (1) an assessment of the military effects of sales of United
            States and foreign products and technologies to entities in the
            People's Republic of China; and
                (2) the potential threat of developments related to such
            effects to United States strategic interests.

        (d) Submission of Report.--The report shall be submitted to Congress
    not later than March 15, 1998.

    SEC. 1227. SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON THE
                YAMANTAU MOUNTAIN PROJECT.

        (a) Findings.--Congress finds as follows:
                (1) The United States and Russia have been working since the
            end of the Cold War to achieve a strategic relationship based on
            cooperation and openness between the two nations.
                (2) This effort to establish a new strategic relationship
            between the two nations has resulted in the conclusion or

    [[Page 111 STAT. 1943]]

            agreement in principle on a number of far-reaching agreements,
            including START I, II, and III, a revision in the Conventional
            Forces in Europe Treaty, and a series of other agreements (such
            as the Comprehensive Test Ban Treaty and the Chemical Weapons
            Convention), designed to further reduce bilateral threats and
            limit the proliferation of weapons of mass destruction.
                (3) These far-reaching agreements were based on the
            understanding between the United States and Russia that there
            would be a good faith effort on both sides to comply with the
            letter and spirit of the agreements.
                (4) Reports indicate that Russia has been pursuing
            construction of a massive underground facility of unknown
            purpose at Yamantau Mountain and the city of Mezhgorye (formerly
            the settlements of Beloretsk-15 and Beloretsk-16) that is
            designed to survive a nuclear war and appears to exceed
            reasonable defense requirements.
                (5) The Yamantau Mountain project does not appear to be
            consistent with the lowering of strategic threats, openness, and
            cooperation that is the basis of the post-Cold War strategic
            partnership between the United States and Russia.
                (6) The United States has allowed senior Russian military
            and government officials to have access to key strategic
            facilities of the United States by providing tours of the North
            American Air Defense (NORAD) command at Cheyenne Mountain and
            the United States Strategic Command (STRATCOM) headquarters in
            Omaha, Nebraska, among other sites, and by providing extensive
            briefings on the operations of those facilities.

        (b) Sense of Congress.--It is the sense of Congress that the Russian
    government--
                (1) should provide to the United States Government a written
            explanation with sufficient detail (including drawings and
            diagrams) of the purpose and operational concept of the
            completed and planned facilities at Yamantau Mountain to support
            a high confidence judgment by the United States that the design
            of the Yamantau facility is consistent with official Russian
            government explanations; and
                (2) should allow a United States delegation, to include
            officials of the executive branch and Members of Congress, to
            have access to the Yamantau Mountain project and buildings and
            facilities surrounding the project.

    SEC. 1228. ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES NATIONAL
                SECURITY.

        (a) Findings.--Congress makes the following findings:
                (1) Cuba has maintained a hostile policy in its relations
            with the United States for over 35 years.
                (2) The United States, as a sovereign nation, must be able
            to respond to any Cuban provocation and defend the people and
            territory of the United States against any attack.
                (3) In 1994, the Government of Cuba callously encouraged a
            massive exodus of Cubans, by boat and raft, toward the United
            States during which countless numbers of those Cubans lost their
            lives on the high seas.
                (4) The humanitarian response of the United States to
            rescue, shelter, and provide emergency care to those Cubans,

    [[Page 111 STAT. 1944]]

            together with the actions taken to absorb some 30,000 of those
            Cubans into the United States, required significant efforts and
            the expenditure of hundreds of millions of dollars for the costs
            incurred by the United States and State and local governments in
            connection with those efforts.
                (5) On February 24, 1996, Cuban MiG aircraft attacked and
            destroyed, in international airspace, two unarmed civilian
            aircraft flying from the United States, and the four persons in
            those unarmed civilian aircraft were killed.
                (6) Since that attack, the Cuban government has issued no
            apology for the attack, nor has it indicated any intention to
            conform its conduct to international law that is applicable to
            civilian aircraft operating in international airspace.

        (b) Review and Assessment.--The Secretary of Defense shall carry out
    a comprehensive review and assessment of--
                (1) Cuban military capabilities; and
                (2) the threats to the national security of the United
            States that may be posed by Cuba, including--
                        (A) such unconventional threats as (i) encouragement
                    of massive and dangerous migration, and (ii) attacks on
                    citizens and residents of the United States while they
                    are engaged in peaceful protest in international waters
                    or airspace;
                        (B) the potential for development and delivery of
                    chemical or biological weapons; and
                        (C) the potential for internal strife in Cuba that
                    could involve citizens or residents of the United States
                    or the Armed Forces of the United States.

        (c) Report.--Not later than March 31, 1998, the Secretary of Defense
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a report
    on the review and assessment. The report shall include the following:
                (1) The Secretary's assessment of the capabilities and
            threats referred to in subsection (b), including each of the
            threats described in paragraph (2) of that subsection.
                (2) A discussion of the results of the review and
            assessment, including an assessment of the contingency plans
            developed by the Secretary to counter any threat posed by Cuba
            to the United States.

        (d) Consultation on Review and Assessment.--In performing the review
    and assessment and in preparing the report, the Secretary of Defense
    shall consult with the Chairman of the Joint Chiefs of Staff, the
    commander of the United States Southern Command, and the heads of other
    appropriate departments and agencies of the United States.

    SEC. 1229. REPORT ON HELSINKI JOINT STATEMENT.

    <<NOTE: President.>>     (a) Requirement.--Not later than March 31,
    1998, the President 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 Helsinki Joint Statement on future
    reductions in nuclear forces. The report shall address the United States
    approach (including verification implications) to implementing the
    Helsinki Joint Statement, in particular, as that Statement relates to
    the following:
                (1) Lower aggregate levels of strategic nuclear warheads.

    [[Page 111 STAT. 1945]]

                (2) Measures relating to the transparency of strategic
            nuclear warhead inventories and the destruction of strategic
            nuclear warheads.
                (3) Deactivation of strategic nuclear delivery vehicles.
                (4) Measures relating to nuclear long-range sea-launched
            cruise missiles and tactical nuclear systems.
                (5) Issues related to transparency in nuclear materials.

        (b) Definition.--For purposes of this section, the term ``Helsinki
    Joint Statement'' means the agreements between the President of the
    United States and the President of the Russian Federation as contained
    in the Joint Statement on Parameters on Future Reductions in Nuclear
    Forces issued at Helsinki in March 1997.

    SEC. 1230. COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.

        (a) Findings.--Congress makes the following findings:
                (1) On July 6, 1997, elections were conducted in Mexico in
            order to fill 500 seats in the Chamber of Deputies, 32 seats in
            the 128 seat Senate, the office of the Mayor of Mexico City, and
            local elections in a number of Mexican States.
                (2) For the first time, the federal elections were organized
            by the Federal Electoral Institute, an autonomous and
            independent organization established under the Mexican
            Constitution.
                (3) More than 52,000,000 Mexican citizens registered to
            vote.
                (4) Eight political parties registered to participate in
            those elections, including the Institutional Revolutionary Party
            (PRI), the National Action Party (PAN), and the Democratic
            Revolutionary Party (PRD).
                (5) Since 1993, Mexican citizens have had the exclusive
            right to participate as observers in activities related to the
            preparation and the conduct of elections.
                (6) Since 1994, Mexican law has permitted international
            observers to be a part of the election process.
                (7) With 84 percent of the ballots counted, PRI candidates
            received 38 percent of the vote for seats in the Chamber of
            Deputies, while PRD and PAN candidates received 52 percent of
            the combined vote.
                (8) PRD candidate Cuauhtemoc Cardenas Solorzano has become
            the first elected Mayor of Mexico City, a post previously
            appointed by the President.
                (9) PAN members will now serve as governors in seven of
            Mexico's 31 States.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the recent elections in Mexico were conducted in a free,
            fair, and impartial manner;
                (2) the will of the Mexican people, as expressed through the
            ballot box, has been respected by President Ernesto Zedillo and
            officials throughout his administration; and
                (3) President Zedillo, the Mexican Government, the Federal
            Electoral Institute of Mexico, the political parties and
            candidates, and most importantly the citizens of Mexico should
            all be congratulated for their support and participation in
            these very historic elections.

    SEC. 1231. SENSE OF CONGRESS REGARDING CAMBODIA.

        (a) Findings.--Congress makes the following findings:

    [[Page 111 STAT. 1946]]

                (1) During the 1970s and 1980s, Cambodia was wracked by
            political conflict, war, and violence, including genocide
            perpetrated by the Khmer Rouge from 1975 to 1979.
                (2) The 1991 Paris Agreements on a Comprehensive Political
            Settlement of the Cambodia Conflict set the stage for a process
            of political accommodation and national reconciliation among
            Cambodia's warring parties.
                (3) The international community engaged in a massive effort
            involving more than $2,000,000,000 to ensure peace, democracy,
            and prosperity in Cambodia following the Paris Accords.
                (4) The Cambodian people clearly demonstrated their support
            for democracy when 90 percent of eligible Cambodian voters
            participated in United Nations-sponsored elections in 1993.
                (5) Since the 1993 elections, Cambodia has made economic
            progress, as shown by the recent decision of the Association of
            Southeast Asian Nations (ASEAN) to extend membership in the
            Association to Cambodia.
                (6) Tensions within the ruling Cambodian coalition have
            erupted into violence.
                (7) In March 1997, 19 Cambodians were killed and more than
            100 were wounded in a grenade attack on political demonstrators
            supportive of the Funcinpec and the Khmer Nation Party.
                (8) During June 1997, fighting erupted in Phnom Penh between
            forces loyal to First Prime Minister Prince Ranariddh and Second
            Prime Minister Hun Sen.
                (9) On July 5, 1997, Second Prime Minister Hun Sen deposed
            the First Prime Minister in a violent coup d'etat.
                (10) Forces loyal to Hun Sen have executed former Interior
            Minister Ho Sok and approximately 40 other political opponents
            loyal to Prince Ranariddh.
                (11) Democracy and stability in Cambodia are threatened by
            the continued use of violence and other extralegal means to
            resolve political tensions.
                (12) In response to the July 1997 coup in Cambodia referred
            to in paragraph (9)--
                        (A) the <<NOTE: President.>>  President has
                    suspended all direct assistance to the Cambodian
                    Government; and
                        (B) the Association of Southeast Asian Nations
                    (ASEAN) has decided to delay indefinitely admission of
                    Cambodia to membership in the Association.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the parties in Cambodia should immediately cease the use
            of violence;
                (2) the United States should take all necessary steps to
            ensure the safety of United States citizens in Cambodia;
                (3) the United States should call an emergency meeting of
            the United Nations Security Council to consider all options to
            restore peace and democratic governance in Cambodia;
                (4) the United States and the Association of Southeast Asian
            Nations should work together to take immediate steps to restore
            democracy and the rule of law in Cambodia;
                (5) United States assistance to the Government of Cambodia
            should remain suspended until violence ends, the democratically
            elected Government is restored to power, and the

    [[Page 111 STAT. 1947]]

            necessary steps have been taken to ensure that the elections
            scheduled for 1998 take place; and
                (6) the United States should take all necessary steps to
            encourage other donor nations to suspend assistance as part of a
            multilateral effort.

    SEC. 1232. CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG KONG.

        (a) Findings.--Congress makes the following findings:
                (1) His Excellency Christopher F. Patten, the former
            Governor of Hong Kong, was the twenty-eighth and last British
            Governor of the dependent territory of Hong Kong before that
            territory reverted back to the People's Republic of China on
            July 1, 1997.
                (2) Christopher Patten was a superb administrator and an
            inspiration to the people whom he governed.
                (3) During Christopher Patten's five years as Governor of
            Hong Kong, the economy flourished under his stewardship, growing
            by more than 30 percent in real terms.
                (4) Christopher Patten presided over a capable and honest
            civil service.
                (5) During the tenure of Christopher Patten as Governor of
            Hong Kong, common crime declined and the political climate was
            positive and stable.
                (6) The legacy of Christopher Patten to Hong Kong is the
            expansion of democracy in Hong Kong's legislative council and a
            tireless devotion to the rights, freedoms, and welfare of the
            people of Hong Kong.
                (7) Christopher Patten fulfilled the commitment of the
            British Government to ``put in place a solidly based democratic
            administration'' in Hong Kong before July 1, 1997.

        (b) Sense of Congress.--It is the sense of the Congress that
    Christopher F. Patten, the last British Governor of the dependent
    territory of Hong Kong--
                (1) served his country with great honor and distinction in
            that capacity; and
                (2) deserves special thanks and recognition from the United
            States for his tireless efforts to develop and nurture democracy
            in Hong Kong.

                  TITLE XIII--ARMS CONTROL AND RELATED MATTERS

    Sec. 1301. Presidential report concerning detargeting of Russian
               strategic missiles.
    Sec. 1302. Limitation on retirement or dismantlement of strategic
               nuclear delivery systems.
    Sec. 1303. Assistance for facilities subject to inspection under the
               Chemical
               Weapons Convention.
    Sec. 1304. Transfers of authorizations for high-priority
               counterproliferation
               programs.
    Sec. 1305. Advice to the President and Congress regarding the safety,
               security, and reliability of United States nuclear weapons
               stockpile.
    Sec. 1306. Reconstitution of commission to assess the ballistic missile
               threat to the United States.
    Sec. 1307. Sense of Congress regarding the relationship between United
               States
               obligations under the Chemical Weapons Convention and
               environmental laws.
    Sec. 1308. Extension of counterproliferation authorities for support of
               United
               Nations Special Commission on Iraq.

    [[Page 111 STAT. 1948]]

    Sec. 1309. Annual report on moratorium on use by Armed Forces of
               antipersonnel landmines.

    SEC. 1301. PRESIDENTIAL REPORT CONCERNING DETARGETING OF RUSSIAN
                STRATEGIC MISSILES.

        (a) Required Report.--Not later than January 1, 1998, the President
    shall submit to Congress a report concerning detargeting of Russian
    strategic missiles. The report shall address each of the following:
                (1) Whether a Russian ICBM that was formerly, but is no
            longer, targeted at a site in the United States would be
            automatically retargeted at a site in the United States in the
            event of the accidental launch of the missile.
                (2) Whether missile detargeting would prevent or
            significantly reduce the possibility of an unauthorized missile
            launch carried out by the Russian General Staff and prevent or
            significantly reduce the consequences to the United States of
            such a launch.
                (3) Whether missile detargeting would pose a significant
            obstacle to an unauthorized launch carried out by an operational
            level below the Russian General Staff if missile operators at
            such an operational level acquired missile launch codes or had
            the technical expertise to override missile launch codes.
                (4) The plausibility of an accidental launch of a Russian
            ICBM, compared to the possibility of a deliberate missile
            launch, authorized or unauthorized, resulting from Russian
            miscalculation, overreaction, or aggression.
                (5) The national security benefits derived from detargeting
            United States and Russian ICBMs.
                (6) The relative consequences to the United States of an
            unauthorized or accidental launch of a Russian ICBM that has
            been detargeted and one that has not been detargeted.

        (b) Definitions.--For purposes of subsection (a):
                (1) The term ``Russian ICBM'' means an intercontinental
            ballistic missile of the Russian Federation.
                (2) The term ``accidental launch'' means a missile launch
            resulting from mechanical failure.

    SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC
                NUCLEAR DELIVERY SYSTEMS.

        (a) Funding Limitation.--Funds available to the Department of
    Defense may not be obligated or expended during fiscal year 1998 for
    retiring or dismantling, or for preparing to retire or dismantle, any of
    the following strategic nuclear delivery systems below the specified
    levels:
                (1) 71 B-52H bomber aircraft.
                (2) 18 Trident ballistic missile submarines.
                (3) 500 Minuteman III intercontinental ballistic missiles.
                (4) 50 Peacekeeper intercontinental ballistic missiles.

        (b) Waiver Authority.--If the START II Treaty enters into force
    during fiscal year 1998, the Secretary of Defense may waive the
    application of the limitation under subsection (a) to the extent that
    the Secretary determines necessary in order to implement the treaty.
        (c) Funding Limitation on Early Deactivation.--(1) If the limitation
    under subsection (a) ceases to apply by reason of a waiver under
    subsection (b), funds available to the Department of Defense may
    nevertheless not be obligated or expended during

    [[Page 111 STAT. 1949]]

    fiscal year 1998 to implement any agreement or understanding to
    undertake substantial early deactivation of a strategic nuclear delivery
    system specified in subsection (a) until 30 days after the date on which
    the President submits to Congress a report concerning such actions.
        (2) For purposes of this subsection and subsection (d), a
    substantial early deactivation is an action during fiscal year 1998 to
    deactivate a substantial number of strategic nuclear delivery systems
    specified in subsection (a) by--
                (A) removing nuclear warheads from those systems; or
                (B) taking other steps to remove those systems from combat
            status.

        (3) A report under <<NOTE: Reports.>>  this subsection shall include
    the following:
                (A) The text of any understanding or agreement between the
            United States and the Russian Federation concerning substantial
            early deactivation of strategic nuclear delivery systems under
            the START II Treaty.
                (B) The plan of the Department of Defense for implementing
            the agreement.
                (C) An assessment of the Secretary of Defense of the
            adequacy of the provisions contained in the agreement for
            monitoring and verifying compliance of Russia with the terms of
            the agreement and, based upon that assessment, the determination
            of the President specifically as to whether the procedures for
            monitoring and verification of compliance by Russia with the
            terms of the agreement are adequate or inadequate.
                (D) A <<NOTE: President.>>  determination by the President
            as to whether the deactivations to occur under the agreement
            will be carried out in a symmetrical, reciprocal, or equivalent
            manner and whether the agreement will require early
            deactivations of strategic forces by the United States to be
            carried out substantially more rapidly than deactivations of
            strategic forces by Russia.
                (E) An assessment <<NOTE: President.>>  by the President of
            the effect of the proposed early deactivation on the stability
            of the strategic balance and relative strategic nuclear
            capabilities of the United States and the Russian Federation at
            various stages during deactivation and upon completion,
            including a determination by the President specifically as to
            whether the proposed early deactivations will adversely affect
            strategic stability.

        (d) Further Limitation on Strategic Force Reductions.--(1) Amounts
    available to the Department of Defense for fiscal year 1998 to implement
    an agreement that results in a substantial early deactivation during
    fiscal year 1998 of strategic forces may not be obligated for that
    purpose if in the report under subsection (c)(3) the President
    determines any of the following:
                (A) That procedures for monitoring and verification of
            compliance by Russia with the terms of the agreement are
            inadequate.
                (B) That the agreement will require early deactivations of
            strategic forces by the United States to be carried out
            substantially more rapidly than deactivations of strategic
            forces by Russia.
                (C) That the proposed early deactivations will adversely
            affect strategic stability.

        (2) The limitation in paragraph (1), if effective by reason of a
    determination by the President described in paragraph (1)(B),

    [[Page 111 STAT. 1950]]

    shall cease to apply 30 days after the date on which the President
    notifies Congress that the early deactivations under the agreement are
    in the national interest of the United States.
        (e) Contingency Plan for Sustainment of Systems.--(1) Not later then
    February 15, 1998, the Secretary of Defense shall submit to Congress a
    plan for the sustainment beyond October 1, 1999, of United States
    strategic nuclear delivery systems and alternative Strategic Arms
    Reduction Treaty force structures in the event that a strategic arms
    reduction agreement subsequent to the Strategic Arms Reduction Treaty
    does not enter into force before 2004.
        (2) The plan shall include a discussion of the following matters:
                (A) The actions that are necessary to sustain the United
            States strategic nuclear delivery systems, distinguishing
            between the actions that are planned for and funded in the
            future-years defense program and the actions that are not
            planned for and funded in the future-years defense program.
                (B) The funding necessary to implement the plan, indicating
            the extent to which the necessary funding is provided for in the
            future-years defense program and the extent to which the
            necessary funding is not provided for in the future-years
            defense program.

        (f) START Treaties Defined.--In this section:
                (1) The term ``Strategic Arms Reduction Treaty'' means the
            Treaty Between the United States of America and the United
            Soviet Socialist Republics on the Reduction and Limitation of
            Strategic Offensive Arms (START), signed at Moscow on July 31,
            1991, including related annexes on agreed
            statements and definitions, protocols, and memorandum of
            understanding.
                (2) The term ``START II Treaty'' means the Treaty Between
            the United States of America and the Russian Federation on
            Further Reduction and Limitation of Strategic Offensive Arms,
            signed at Moscow on January 3, 1993, including the following
            protocols and memorandum of understanding, all such
            documents being integral parts of and collectively referred to
            as the ``START II Treaty'' (contained in Treaty Document
            103-1):
                        (A) The Protocol on Procedures Governing Elimination
                    of Heavy ICBMs and on Procedures Governing Conversion of
                    Silo Launchers of Heavy ICBMs Relating to the Treaty
                    Between the United States of America and the Russian
                    Federation on Further Reduction and Limitation of
                    Strategic Offensive Arms (also known as the
                    ``Elimination and Conversion Protocol'').
                        (B) The Protocol on Exhibitions and Inspections of
                    Heavy Bombers Relating to the Treaty Between the United
                    States and the Russian Federation on Further Reduction
                    and Limitation of Strategic Offensive Arms (also known
                    as the ``Exhibitions and Inspections Protocol'').
                        (C) The Memorandum of Understanding on Warhead
                    Attribution and Heavy Bomber Data Relating to the Treaty
                    Between the United States of America and the Russian
                    Federation on Further Reduction and Limitation of
                    Strategic Offensive Arms (also known as the ``Memorandum
                    on Attribution'').

    [[Page 111 STAT. 1951]]

    SEC. 1303. <<NOTE: 50 USC 1525.>>  ASSISTANCE FOR FACILITIES SUBJECT TO
                INSPECTION UNDER THE CHEMICAL WEAPONS CONVENTION.

        (a) Assistance Authorized.--Upon the request of the owner or
    operator of a facility that is subject to a routine inspection or a
    challenge inspection under the Chemical Weapons Convention, the
    Secretary of Defense may provide technical assistance to that owner or
    operator related to compliance of that facility with the Convention. Any
    such assistance shall be provided through the On-Site Inspection Agency
    of the Department of Defense.

        (b) Reimbursement Requirement.--The Secretary may provide assistance
    under subsection (a) only to the extent that the Secretary determines
    that the Department of Defense will be reimbursed for costs incurred in
    providing the assistance. The United States National Authority may
    provide such reimbursement from amounts available to it. Any such
    reimbursement shall be credited to amounts available for the On-Site
    Inspection Agency.
        (c) Definitions.--In this section:
                (1) The terms ``Chemical Weapons Convention'' and
            ``Convention'' mean the Convention on the Prohibition of the
            Development, Production, Stockpiling and Use of Chemical Weapons
            and on Their Destruction, ratified by the United States on April
            25, 1997, and entered into force on April 29, 1997.
                (2) The term ``facility that is subject to a routine
            inspection'' means a declared facility, as defined in paragraph
            15 of part X of the Annex on Implementation and Verification of
            the Convention.
                (3) The term ``challenge inspection'' means an inspection
            conducted under Article IX of the Convention.
                (4) The term ``United States National Authority'' means the
            United States National Authority established or designated
            pursuant to Article VII, paragraph 4, of the Convention.

    SEC. 1304. TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY
                COUNTERPROLIFERATION PROGRAMS.

        (a) Authority.--(1) Subject to paragraph (2), the Secretary of
    Defense may transfer amounts of authorizations made available to the
    Department of Defense in this division for fiscal year 1998 to any
    counterproliferation program, project, or activity described in
    subsection (b).
        (2) A transfer of authorizations may be made under this section only
    upon determination by the Secretary of Defense that such action is
    necessary in the national interest.
        (3) Amounts of authorizations so transferred shall be merged with
    and be available for the same purposes as the authorization to which
    transferred.
        (b) Programs To Which Tranfers May Be Made.--The authority under
    subsection (a) applies to any counterproliferation program, project, or
    activity of the Department of Defense identified as an area for progress
    in the most recent annual report of the Counterproliferation Program
    Review Committee established by section 1605 of the National Defense
    Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).
        (c) Limitation on Total Amount.--The total amount of authorizations
    transferred under the authority of this section may not exceed
    $50,000,000.

    [[Page 111 STAT. 1952]]

        (d) Other Limitations and Requirements.--The provisions of
    subsection (b), (c), and (d) of section 1001 shall apply to a transfer
    under this section in the same manner as they apply to a transfer under
    subsection (a) of that section.
        (e) Construction With General Transfer Authority.--The authority
    provided by this section is in addition to the transfer authority
    provided in section 1001.

    SEC. 1305. <<NOTE: 42 USC 7274p.>>  ADVICE TO THE PRESIDENT AND CONGRESS
                REGARDING THE SAFETY, SECURITY, AND RELIABILITY OF UNITED
                STATES NUCLEAR WEAPONS STOCKPILE.

        (a) Findings.--Congress makes the following findings:
                (1) Nuclear weapons are the most destructive weapons on
            earth. The United States and its allies continue to rely on
            nuclear weapons to deter potential adversaries from using
            weapons of mass destruction. The safety and reliability of the
            nuclear weapons stockpile are essential to ensure its
            credibility as a deterrent.
                (2) On September 24, 1996, President Clinton signed the
            Comprehensive Test Ban Treaty.
                (3) Effective as of September 30, 1996, the United States is
            prohibited by section 507 of the Energy and Water Development
            Appropriations Act, 1993 (Public Law 102-377; 42 U.S.C. 2121
            note) from conducting underground nuclear tests ``unless a
            foreign state conducts a nuclear test after this date, at which
            time the prohibition on United States nuclear testing is
            lifted''.
                (4) Section 1436(b) of the National Defense Authorization
            Act, Fiscal Year 1989 (Public Law 100-456; 42 U.S.C. 2121 note)
            requires the Secretary of Energy to ``establish and support a
            program to assure that the United States is in a position to
            maintain the reliability, safety, and continued deterrent effect
            of its stockpile of existing nuclear weapons designs in the
            event that a low-threshold or comprehensive test ban on nuclear
            explosive testing is negotiated and ratified.''.
                (5) Section 3138(d) of the National Defense Authorization
            Act for Fiscal Year 1994 (Public Law 103-160; 42 U.S.C. 2121
            note) required the President to submit an annual report to
            Congress which sets forth ``any concerns with respect to the
            safety, security, effectiveness, or reliability of existing
            United States nuclear weapons raised by the Stockpile
            Stewardship Program of the Department of Energy''.
                (6) President Clinton declared in July 1993 that ``to assure
            that our nuclear deterrent remains unquestioned under a test
            ban, we will explore other means of maintaining our confidence
            in the safety, reliability, and the performance of our
            weapons''. This decision was incorporated in a Presidential
            Directive.
                (7) Section 3138 of the National Defense Authorization Act
            for Fiscal Year 1994 (Public Law 103-160; 42 U.S.C. 2121 note)
            also requires that the Secretary of Energy establish a
            ``stewardship program to ensure the preservation of the core
            intellectual and technical competencies of the United States in
            nuclear weapons''.
                (8) The plan of the Department of Energy to maintain the
            safety and reliability of the United States nuclear weapons
            stockpile is known as the Stockpile Stewardship and Management
            Program. The ability of the United States to maintain and
            certify the safety, security, effectiveness, and reliability

    [[Page 111 STAT. 1953]]

            of the nuclear weapons stockpile without testing will require
            utilization of new and sophisticated computational capabilities
            and diagnostic technologies, methods, and procedures. Current
            diagnostic technologies and laboratory testing techniques are
            insufficient to certify the safety and reliability of the United
            States nuclear weapons stockpile into the future. Whereas in the
            past laboratory and diagnostic tools were used in conjunction
            with nuclear testing, in the future they will provide, under the
            Department of Energy's stockpile stewardship plan, the sole
            basis for assessing past test data and for making judgments on
            phenomena observed in connection with the aging of the
            stockpile.
                (9) Section 3159 of the National Defense Authorization Act
            for Fiscal Year 1997 (Public Law 104-201; 42 U.S.C. 7274o)
            requires that the directors of the nuclear weapons laboratories
            and the nuclear weapons production plants submit a report to the
            Assistant Secretary of Energy for Defense Programs if they
            identify a problem that has significant bearing on confidence in
            the safety or reliability of a nuclear weapon or nuclear weapon
            type, that the Assistant Secretary must transmit that report,
            along with any comments, to the congressional defense committees
            and to the Secretary of Energy and the Secretary of Defense, and
            that the Joint Nuclear Weapons Council advise Congress regarding
            its analysis of any such problems.
                (10) On August 11, 1995, President Clinton directed ``the
            establishment of a new annual reporting and certification
            requirement [to] ensure that our nuclear weapons remain safe and
            reliable under a comprehensive test ban''.
                (11) On the same day, the President noted that the Secretary
            of Defense and the Secretary of Energy have the responsibility,
            after being ``advised by the Nuclear Weapons Council, the
            Directors of DOE's nuclear weapons laboratories, and the
            Commander of United States Strategic Command'', to provide the
            President with the information regarding the certification
            referred to in paragraph (10).
                (12) The Joint Nuclear Weapons Council established by
            section 179 of title 10, United States Code, is responsible for
            providing advice to the Secretary of Energy and the Secretary of
            Defense regarding nuclear weapons issues, including
            ``considering safety, security, and control issues for existing
            weapons''. The Council plays a critical role in advising
            Congress in matters relating to nuclear weapons.
                (13) It is essential that the President receive well-
            informed, objective, and honest opinions, including dissenting
            views, from his advisers and technical experts regarding the
            safety, security, effectiveness, and reliability of the nuclear
            weapons stockpile.

        (b) Policy.--
                (1) In general.--It is the policy of the United States--
                        (A) to maintain a safe, secure, effective, and
                    reliable nuclear weapons stockpile; and
                        (B) as long as other nations control or actively
                    seek to acquire nuclear weapons, to retain a credible
                    nuclear deterrent.
                (2) Nuclear weapons stockpile.--It is in the security
            interest of the United States to sustain the United States

    [[Page 111 STAT. 1954]]

            nuclear weapons stockpile through a program of stockpile
            stewardship, carried out at the nuclear weapons laboratories and
            nuclear weapons production plants.
                (3) Sense of congress.--It is the sense of Congress that--
                        (A) the United States should retain a triad of
                    strategic nuclear forces sufficient to deter any future
                    hostile foreign leadership with access to strategic
                    nuclear forces from acting against the vital interests
                    of the United States;
                        (B) the United States should continue to maintain
                    nuclear forces of sufficient size and capability to
                    implement an effective and robust deterrent strategy;
                    and
                        (C) the advice of the persons required to provide
                    the President and Congress with assurances of the
                    safety, security, effectiveness, and reliability of the
                    nuclear weapons force should be scientifically based,
                    without regard for politics, and of the highest quality
                    and integrity.

        (c) Addition of President to Recipients of Reports by Heads of
    Laboratories and Plants.--Section 3159(b) of the National Defense
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 42 U.S.C.
    7274o) is amended--
                (1) by striking out ``committees and'' and inserting in lieu
            thereof ``committees,''; and
                (2) by inserting before the period at the end the following:
            ``, and to the President''.

        (d) Ten-Day Time Limit for Transmittal of Report.--Section 3159(b)
    of the National Defense Authorization Act for Fiscal Year 1997 (Public
    Law 104-201; 42 U.S.C. 7274o) is amended by striking out ``As soon as
    practicable'' and inserting in lieu thereof ``Not later than 10 days''.
        (e) Advice and Opinions Regarding Nuclear Weapons Stockpile.--In
    addition to a director of a nuclear weapons laboratory or a nuclear
    weapons production plant (under section 3159 of the National Defense
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 42 U.S.C.
    7274o)), any member of the Joint Nuclear Weapons Council or the
    commander of the United States Strategic Command may also submit to the
    President, the Secretary of Defense, the Secretary of Energy, or the
    congressional defense committees advice or opinion regarding the safety,
    security, effectiveness, and reliability of the nuclear weapons
    stockpile.
        (f) Expression of Individual Views.--A representative of the
    President may not take any action against, or otherwise constrain, a
    director of a nuclear weapons laboratory or a nuclear weapons production
    plant, a member of the Joint Nuclear Weapons Council, or the Commander
    of United States Strategic Command for presenting individual views to
    the President, the National Security Council, or Congress regarding the
    safety, security, effectiveness, and reliability of the nuclear weapons
    stockpile.
        (g) Definitions.--In this section:
                (1) The term ``representative of the President'' means the
            following:
                        (A) Any official of the Department of Defense or the
                    Department of Energy who is appointed by the President
                    and confirmed by the Senate.
                        (B) Any member of the National Security Council.
                        (C) Any member of the Joint Chiefs of Staff.
                        (D) Any official of the Office of Management and
                    Budget.

    [[Page 111 STAT. 1955]]

                (2) The term ``nuclear weapons laboratory'' means any of the
            following:
                        (A) Lawrence Livermore National Laboratory,
                    California.
                        (B) Los Alamos National Laboratory, New Mexico.
                        (C) Sandia National Laboratories.
                (3) The term ``nuclear weapons production plant'' means any
            of the following:
                        (A) The Pantex Plant, Texas.
                        (B) The Savannah River Site, South Carolina.
                        (C) The Kansas City Plant, Missouri.
                        (D) The Y-12 Plant, Oak Ridge, Tennessee.

    SEC. 1306. RECONSTITUTION OF COMMISSION TO ASSESS THE BALLISTIC MISSILE
                THREAT TO THE UNITED STATES.

        (a) Initial Organization Requirements.--Section 1321(g) of the
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201; 110 Stat. 2712) is amended--
                (1) in paragraph (1), by striking out ``not later than 45
            days after the date of the enactment of this Act'' and inserting
            in lieu thereof ``not later than 30 days after the date of the
            enactment of the National Defense Authorization Act for Fiscal
            Year 1998''; and
                (2) in paragraph (2)--
                        (A) by striking out ``30 days'' and inserting in
                    lieu thereof ``60 days''; and
                        (B) by striking out ``, but not earlier than October
                    15, 1996''.

        (b) Funding.--Section 1328 of such Act (110 Stat. 2714) is amended
    by inserting ``and fiscal year 1998'' after ``for fiscal year 1997''.

    SEC. 1307. SENSE OF CONGRESS REGARDING THE RELATIONSHIP BETWEEN UNITED
                STATES OBLIGATIONS UNDER THE CHEMICAL WEAPONS CONVENTION AND
                ENVIRONMENTAL LAWS.

        (a) Findings.--Congress makes the following findings:
                (1) The Chemical Weapons Convention requires the destruction
            of the United States stockpile of lethal chemical agents and
            munitions by April 29, 2007 (not later than 10 years after the
            Convention's entry into force).
                (2) The President has substantial authority under existing
            law to ensure that--
                        (A) the technologies necessary to destroy the
                    stockpile are developed;
                        (B) the facilities necessary to destroy the
                    stockpile are constructed; and
                        (C) Federal, State, and local environmental laws and
                    regulations do not impair the ability of the United
                    States to comply with its obligations under the
                    Convention.
                (3) The Comptroller General has concluded (in GAO Report
            NSIAD 97018 of February 1997) that--
                        (A) obtaining the necessary Federal and State
                    permits that are required under Federal environmental
                    laws and regulations for building and operating the
                    chemical agents and munitions destruction facilities is
                    among the most unpredictable factors in the chemical
                    demilitarization program; and

    [[Page 111 STAT. 1956]]

                        (B) program cost and schedule are largely driven by
                    the degree to which States and local communities are in
                    agreement with proposed disposal methods and whether
                    those methods meet environmental concerns.

        (b) Sense of Congress.--It is the sense of Congress that the
    President--
                (1) should use the authority of the President under existing
            law to ensure that the United States is able to construct and
            operate the facilities necessary to destroy the United States
            stockpile of lethal chemical agents and munitions within the
            time allowed by the Chemical Weapons Convention; and
                (2) while carrying out the obligations of the United States
            under the Convention, should encourage negotiations between
            appropriate Federal officials and officials of the State and
            local governments concerned to attempt to meet their concerns
            regarding compliance with Federal and State environmental laws
            and regulations and other concerns about the actions being taken
            to carry out those obligations.

        (c) Chemical Weapons Convention Defined.--For the purposes of this
    section, the terms ``Chemical Weapons Convention'' and ``Convention''
    mean the Convention on the Prohibition of the Development, Production,
    Stockpiling and Use of Chemical Weapons and on Their Destruction,
    ratified by the United States on April 25, 1997, and entered into force
    on April 29, 1997.

    SEC. 1308. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF
                UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

        Section 1505 of the Weapons of Mass Destruction Control Act of 1992
    (title XV of Public Law 102-484; 22 U.S.C. 5859a) is amended--
                (1) in subsection (d)(3), by striking out ``or'' after
            ``fiscal year 1996,'' and by inserting ``, or $15,000,000 for
            fiscal year 1998'' before the period at the end; and
                (2) in subsection (f), by striking out ``1997'' and
            inserting in lieu thereof ``1998''.

    SEC. 1309. <<NOTE: 10 USC 113 note.>>  ANNUAL REPORT ON MORATORIUM ON
                USE BY ARMED FORCES OF ANTIPERSONNEL LANDMINES.

        (a) Findings.--Congress makes the following findings:
                (1) The United States has stated its support for a ban on
            antipersonnel landmines that is global in scope and verifiable.
                (2) On <<NOTE: Korea.>>  May 16, 1996, the President
            announced that the United States, as a matter of policy, would
            eliminate its stockpile of non-self-destructing antipersonnel
            landmines, except those used for training purposes and in Korea,
            and that the United States would reserve the right to use self-
            destructing antipersonnel landmines in the event of conflict.
                (3) On May 16, 1996, the President also announced that the
            United States would lead an effort to negotiate an international
            treaty permanently banning the use of all antipersonnel
            landmines.
                (4) The United States is currently participating at the
            United Nations Conference on Disarmament in negotiations aimed
            at achieving a global ban on the use of antipersonnel landmines.

    [[Page 111 STAT. 1957]]

                (5) On August 18, 1997, the <<NOTE: Canada.>>
            administration agreed to participate in international
            negotiations sponsored by Canada (the so-called ``Ottawa
            process'') designed to achieve a treaty that would outlaw the
            production, use, and sale of antipersonnel landmines.
                (6) On <<NOTE: Norway.>>  September 17, 1997, the President
            announced that the United States would not sign the
            antipersonnel landmine treaty concluded in Oslo, Norway, by
            participants in the Ottawa process because the treaty would not
            provide a geographic exception to allow the United States to
            stockpile and use antipersonnel landmines in Korea or an
            exemption that would preserve the ability of the United States
            to use mixed antitank mine systems which could be used to deter
            an armored assault against United States forces.
                (7) The <<NOTE: Korea.>>  President also announced a change
            in United States policy whereby the United States--
                        (A) would no longer deploy antipersonnel landmines,
                    including self-destructing antipersonnel landmines, by
                    2003, except in Korea;
                        (B) would seek to field alternatives by that date,
                    or by 2006 in the case of Korea;
                        (C) would undertake a new initiative in the United
                    Nations Conference on Disarmament to establish a global
                    ban on the transfer of antipersonnel landmines; and
                        (D) would increase its current humanitarian demining
                    activities around the world.
                (8) The President's decision would allow the continued use
            by United States forces of self-destructing antipersonnel
            landmines that are used as part of a mixed antitank mine system.
                (9) Under existing law (as provided in section 580 of Public
            Law 104-107; 110 Stat. 751), on February 12, 1999, the United
            States will implement a one-year moratorium on the use of
            antipersonnel landmines by United States forces except along
            internationally recognized national borders or in demilitarized
            zones within a perimeter marked area that is monitored by
            military personnel and protected by adequate means to ensure the
            exclusion of civilians.

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the United States should not implement a moratorium on
            the use of antipersonnel landmines by United States Armed Forces
            in a manner that would endanger United States personnel or
            undermine the military effectiveness of United States Armed
            Forces in executing their missions; and
                (2) the United States should pursue the development of
            alternatives to self-destructing antipersonnel landmines.

        (c) Annual Report.--Not later than December 31 each year, the
    Secretary of Defense shall submit to the congressional defense
    committees a report concerning antipersonnel landmines. Each such report
    shall include the Secretary's description of the following:
                (1) The military utility of the continued deployment and use
            by the United States of antipersonnel landmines.
                (2) The effect of a moratorium on the production,
            stockpiling, and use of antipersonnel landmines on the ability
            of United States forces to deter and defend against attack on
            land by hostile forces, including on the Korean peninsula.
                (3) Progress in developing and fielding systems that are
            effective substitutes for antipersonnel landmines, including an

    [[Page 111 STAT. 1958]]

            identification and description of the types of systems that are
            being developed and fielded, the costs associated with those
            systems, and the estimated timetable for developing and fielding
            those systems.
                (4) The effect of a moratorium on the use of antipersonnel
            landmines on the military effectiveness of current antitank mine
            systems.
                (5) The number and type of pure antipersonnel landmines that
            remain in the United States inventory and that are subject to
            elimination under the President's September 17, 1997,
            declaration on United States antipersonnel landmine policy.
                (6) The number and type of mixed antitank mine systems that
            are in the United States inventory, the locations where they are
            deployed, and their effect on the deterrence and warfighting
            ability of United States Armed Forces.
                (7) The effect of the elimination of pure antipersonnel
            landmines on the warfighting effectiveness of the United States
            Armed Forces.
                (8) The costs already incurred and anticipated of
            eliminating antipersonnel landmines from the United States
            inventory in accordance with the policy enunciated by the
            President on September 17, 1997.
                (9) The benefits that would result to United States military
            and civilian personnel from an international treaty banning the
            production, use, transfer, and stockpiling of antipersonnel
            landmines.

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

    Sec. 1401. Specification of Cooperative Threat Reduction programs and
               funds.
    Sec. 1402. Funding allocations.
    Sec. 1403. Prohibition on use of funds for specified purposes.
    Sec. 1404. Limitation on use of funds for projects related to START II
               Treaty until submission of certification.
    Sec. 1405. Limitation on use of funds for chemical weapons destruction
               facility.
    Sec. 1406. Limitation on use of funds for destruction of chemical
               weapons.
    Sec. 1407. Limitation on use of funds for storage facility for Russian
               fissile
               material.
    Sec. 1408. Limitation on use of funds for weapons storage security.
    Sec. 1409. Report on issues regarding payment of taxes, duties, and
               other
               assessments on assistance provided to Russia under
               Cooperative Threat Reduction programs.
    Sec. 1410. Availability of funds.

    SEC. 1401. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
                FUNDS.

        (a) Specification of CTR Programs.--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).
        (b) Fiscal Year 1998 Cooperative Threat Reduction Funds Defined.--As
    used in this title, the term ``fiscal year 1998 Cooperative Threat
    Reduction funds'' means the funds appropriated pursuant to the
    authorization of appropriations in section 301 for Cooperative Threat
    Reduction programs.

    [[Page 111 STAT. 1959]]

    SEC. 1402. FUNDING ALLOCATIONS.

        (a) In General.--Of the fiscal year 1998 Cooperative Threat
    Reduction funds, not more than the following amounts may be obligated
    for the purposes specified:
                (1) For strategic offensive arms elimination in Russia,
            $77,900,000.
                (2) For strategic nuclear arms elimination in Ukraine,
            $76,700,000.
                (3) For fissile material containers in Russia, $7,000,000.
                (4) For planning and design of a chemical weapons
            destruction facility in Russia, $35,400,000.
                (5) For dismantlement of biological and chemical weapons
            facilities in the former Soviet Union, $20,000,000.
                (6) For planning, design, and construction of a storage
            facility for Russian fissile material, $57,700,000.
                (7) For weapons storage security in Russia, $36,000,000.
                (8) For development of a cooperative program with the
            Government of Russia to eliminate the production of weapons
            grade plutonium at Russian reactors, $41,000,000.
                (9) For activities designated as Defense and Military-to-
            Military Contacts in Russia, Ukraine, and Kazakhstan,
            $8,000,000.
                (10) For military-to-military programs of the United States
            that focus on countering the threat of proliferation of weapons
            of mass destruction and that include the security forces of the
            independent states of the former Soviet Union other than Russia,
            Ukraine, Belarus, and Kazakstan, $2,000,000.
                (11) For activities designated as Other Assessments/
            Administrative Support $20,500,000.

        (b) Limited Authority To Vary Individual Amounts.--(1) If the
    Secretary of Defense determines that it is necessary to do so in the
    national interest, the Secretary may, subject to 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 (11) of subsection (a) in excess of 115 percent
    of the amount stated in those paragraphs.
        (c) Limited Waiver of 115 Percent Cap on Obligation in Excess of
    Amounts Authorized for Fiscal Years 1996 and 1997.--(1) The limitation
    in subsection (b)(1) of section 1202 of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    469), that provides that the authority

    [[Page 111 STAT. 1960]]

    provided in that sentence to obligate amounts specified for Cooperative
    Threat Reduction purposes in excess of the amount specified for each
    such purpose in subsection (a) of that section may not exceed 115
    percent of the amounts specified, shall not apply with respect to
    subsection (a)(1) of such section for purposes of strategic offensive
    weapons elimination in Russia or the Ukraine.
        (2) The limitation in subsection (b)(1) of section 1502 of the
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201; 110 Stat. 2732), that provides that the authority provided in that
    sentence to obligate amounts specified for Cooperative Threat Reduction
    purposes in excess of the amount specified for each such purpose in
    subsection (a) of that section may not exceed 115 percent of the amounts
    specified, shall not apply with respect to subsections (a)(2) and (a)(3)
    of such section.

    SEC. 1403. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

        (a) In General.--No fiscal year 1998 Cooperative Threat Reduction
    funds, and no funds appropriated for Cooperative Threat Reduction
    programs for any prior fiscal year and remaining available for
    obligation, may be obligated or expended for any of the following
    purposes:
                (1) Conducting with Russia any peacekeeping exercise or
            other peacekeeping-related activity.
                (2) Provision of housing.
                (3) Provision of assistance to promote environmental
            restoration.
                (4) Provision of assistance to promote job retraining.

        (b) Limitation With Respect to Defense Conversion Assistance.--None
    of the funds appropriated pursuant to this Act may be obligated or
    expended for the provision of assistance to Russia or any other state of
    the former Soviet Union to promote defense conversion.

    SEC. 1404. LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO START II
                TREATY UNTIL SUBMISSION OF CERTIFICATION.

        No fiscal year 1998 Cooperative Threat Reduction funds may be
    obligated or expended for strategic offensive arms elimination projects
    in Russia related to the START II Treaty (as defined in section 1302(f))
    until 30 days after the date on which the Secretary of Defense submits
    to Congress a certification in writing that--
                (1) implementation of the projects would benefit the
            national security interest of the United States; and
                (2) Russia has agreed in an implementing agreement to share
            the cost for the projects.

    SEC. 1405. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION
                FACILITY.

        (a) Limitation on Use of Funds Until Submission of Notifications to
    Congress.--No fiscal year 1998 Cooperative Threat Reduction funds may be
    obligated or expended for planning and design of a chemical weapons
    destruction facility until 15 days after the date that is the later of
    the following:
                (1) The date on which the Secretary of Defense submits to
            Congress notification of an agreement between the United States
            and Russia with respect to such chemical weapons destruction
            facility that includes--

    [[Page 111 STAT. 1961]]

                        (A) an agreement providing for a limitation on the
                    financial contribution by the United States for the
                    facility;
                        (B) an agreement that the United States will not pay
                    the costs for infrastructure determined by Russia to be
                    necessary to support the facility; and
                        (C) an agreement on the location of the facility.
                (2) The date on which the Secretary of Defense submits to
            Congress notification that the Government of Russia has formally
            approved a plan--
                        (A) that allows for the destruction of chemical
                    weapons in Russia; and
                        (B) that commits Russia to pay a portion of the cost
                    for the facility.

        (b) Prohibition on Use of Funds for Facility Construction.--No
    fiscal year 1998 Cooperative Threat Reduction funds authorized to be
    obligated in section 1402(a)(4) for planning and design of a chemical
    weapons destruction facility in Russia may be used for construction of
    such facility.

    SEC. 1406. LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF CHEMICAL
                WEAPONS.

        (a) Limitation.--No funds authorized to be appropriated under this
    or any other Act for fiscal year 1998 for Cooperative Threat Reduction
    programs may be obligated or expended for chemical weapons destruction
    activities (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 under
    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 United States policy
            not to carry out chemical weapons destruction activities under
            the Cooperative Threat Reduction programs for which funds are
            authorized to be appropriated under this or any other Act for
            fiscal year 1998.

        (c) Definitions.--For the purposes of 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 Nonproduction of
            Chemical Weapons and on Measures to Facilitate the Multilateral
            Convention on Banning Chemical Weapons, signed on June 1, 1990.

    [[Page 111 STAT. 1962]]

                (2) The term ``Wyoming Memorandum of Understanding'' means
            the Memorandum of Understanding Between the Government of the
            United States of America and the Government of the Union of
            Soviet Socialist Republics Regarding a Bilateral Verification
            Experiment and Data Exchange Related to Prohibition on Chemical
            Weapons, signed at Jackson Hole, Wyoming, on September 23, 1989.

    SEC. 1407. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR RUSSIAN
                FISSILE MATERIAL.

        No fiscal year 1998 Cooperative Threat Reduction funds may be
    obligated or expended for planning, design, or construction of a storage
    facility for Russian fissile material until 15 days after the date that
    is the later of the following:
                (1) The date on which the Secretary of Defense submits to
            Congress notification that an implementing agreement between the
            United States and Russia has been entered into that specifies
            the total cost to the United States for the facility.
                (2) The date on which the Secretary submits to Congress
            notification that an agreement has been entered into between the
            United States and Russia incorporating the principle of
            transparency with respect to the use of the facility.

    SEC. 1408. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.

        No fiscal year 1998 Cooperative Threat Reduction funds intended for
    weapons storage security activities in Russia may be obligated or
    expended until--
                (1) the Secretary of Defense submits to Congress a report on
            the status of negotiations between the United States and Russia
            on audits and examinations with respect to weapons storage
            security; and
                (2) 15 days have elapsed following the date that the report
            is submitted.

    SEC. 1409. REPORT ON ISSUES REGARDING PAYMENT OF TAXES, DUTIES, AND
                OTHER ASSESSMENTS ON ASSISTANCE
                PROVIDED TO RUSSIA UNDER COOPERATIVE THREAT REDUCTION
                PROGRAMS.

        Not later than 90 days after the date of the enactment of this Act,
    the Secretary of Defense shall submit to Congress a report on issues
    regarding payment of taxes, duties, and other assessments on assistance
    provided to Russia under Cooperative Threat Reduction programs. The
    report shall include the following:
                (1) A description of any disputes between the United States
            and Russia with respect to payment by the United States of
            taxes, duties and other assessments on assistance provided to
            Russia under a Cooperative Threat Reduction program, including a
            description of the nature of each dispute, the amount of payment
            disputed, whether the dispute was resolved, and if the dispute
            was resolved, the means by which the dispute was resolved.
                (2) A description of the actions taken by the Secretary to
            prevent disputes in the future between the United States and
            Russia with respect to payment by the United States of taxes,
            duties, and other assessments on assistance provided to Russia
            under a Cooperative Threat Reduction program.

    [[Page 111 STAT. 1963]]

                (3) A description of any agreement between the United States
            and Russia with respect to payment by the United States of
            taxes, duties, or other assessments on assistance provided to
            Russia under a Cooperative Threat Reduction program.
                (4) Any proposals of the Secretary for actions that should
            be taken to prevent disputes between the United States and
            Russia with respect to payment by the United States of taxes,
            duties, or other assessments on assistance provided to Russia
            under a Cooperative Threat Reduction program.

    SEC. 1410. AVAILABILITY OF FUNDS.

        Funds appropriated pursuant to the authorization of appropriations
    in section 301 for Cooperative Threat Reduction programs shall be
    available for obligation for three fiscal years.

        TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

    Sec. 1501. Recognition and grant of Federal charter.
    Sec. 1502. Powers.
    Sec. 1503. Purposes.
    Sec. 1504. Service of process.
    Sec. 1505. Membership.
    Sec. 1506. Board of directors.
    Sec. 1507. Officers.
    Sec. 1508. Restrictions.
    Sec. 1509. Liability.
    Sec. 1510. Maintenance and inspection of books and records.
    Sec. 1511. Audit of financial transactions.
    Sec. 1512. Annual report.
    Sec. 1513. Reservation of right to alter, amend, or repeal charter.
    Sec. 1514. Tax-exempt status required as condition of charter.
    Sec. 1515. Termination.
    Sec. 1516. Definition of State.

    SEC. 1501. <<NOTE: 36 USC 5801.>>  RECOGNITION AND GRANT OF FEDERAL
                CHARTER.

        The Air Force Sergeants Association, a nonprofit corporation
    organized under the laws of the District of Columbia, is recognized as
    such and granted a Federal charter.

    SEC. <<NOTE: 36 USC 5802.>>  1502. POWERS.

        The Air Force Sergeants Association (in this title referred to as
    the ``association'') shall have only those powers granted to it through
    its bylaws and articles of incorporation filed in the District of
    Columbia and subject to the laws of the District of Columbia.

    SEC. 1503. <<NOTE: 36 USC 5803.>>  PURPOSES.

        The purposes of the association are those provided in its bylaws and
    articles of incorporation and shall include the following:
                (1) To help maintain a highly dedicated and professional
            corps of enlisted personnel within the United States Air Force,
            including the United States Air Force Reserve, and the Air
            National Guard.
                (2) To support fair and equitable legislation and Department
            of the Air Force policies and to influence by lawful means
            departmental plans, programs, policies, and legislative
            proposals that affect enlisted personnel of the Regular Air
            Force,

    [[Page 111 STAT. 1964]]

            the Air Force Reserve, and the Air National Guard, its retirees,
            and other veterans of enlisted service in the Air Force.
                (3) To actively publicize the roles of enlisted personnel in
            the United States Air Force.
                (4) To participate in civil and military activities, youth
            programs, and fundraising campaigns that benefit the United
            States Air Force.
                (5) To provide for the mutual welfare of members of the
            association and their families.
                (6) To assist in recruiting for the United States Air Force.
                (7) To assemble together for social activities.
                (8) To maintain an adequate Air Force for our beloved
            country.
                (9) To foster among the members of the association a
            devotion to fellow airmen.
                (10) To serve the United States and the United States Air
            Force loyally, and to do all else necessary to uphold and defend
            the Constitution of the United States.

    SEC. 1504. <<NOTE: 36 USC 5804.>>  SERVICE OF PROCESS.

        With respect to service of process, the association shall comply
    with the laws of the District of Columbia and those States in which it
    carries on its activities in furtherance of its corporate purposes.

    SEC. <<NOTE: 36 USC 5805.>>  1505. MEMBERSHIP.

        Except as provided in section 1508(g), eligibility for membership in
    the association and the rights and privileges of members shall be as
    provided in the bylaws and articles of incorporation of the association.

    SEC. <<NOTE: 36 USC 5806.>>  1506. BOARD OF DIRECTORS.

        Except as provided in section 1508(g), the composition of the board
    of directors of the association and the responsibilities of the board
    shall be as provided in the bylaws and articles of incorporation of the
    association and in conformity with the laws of the District of Columbia.

    SEC. <<NOTE: 36 USC 5807.>>  1507. OFFICERS.

        Except as provided in section 1508(g), the positions of officers of
    the association and the election of members to such positions shall be
    as provided in the bylaws and articles of incorporation of the
    association and in conformity with the laws of the District of Columbia.

    SEC. <<NOTE: 36 USC 5808.>>  1508. RESTRICTIONS.

        (a) Income and Compensation.--No part of the income or assets of the
    association may inure to the benefit of any member, officer, or director
    of the association or be distributed to any such individual during the
    life of this charter. Nothing in this subsection may be construed to
    prevent the payment of reasonable compensation to the officers and
    employees of the association or reimbursement for actual and necessary
    expenses in amounts approved by the board of directors.
        (b) Loans.--The association may not make any loan to any member,
    officer, director, or employee of the association.

    [[Page 111 STAT. 1965]]

        (c) Issuance of Stock and Payment of Dividends.--The association may
    not issue any shares of stock or declare or pay any dividends.
        (d) Disclaimer of Congressional or Federal Approval.--The
    association may not claim the approval of the Congress or the
    authorization of the Federal Government for any of its activities by
    virtue of this title.
        (e) Corporate Status.--The association shall maintain its status as
    a corporation organized and incorporated under the laws of the District
    of Columbia.
        (f) Corporate Function.--The association shall function as an
    educational, patriotic, civic, historical, and research organization
    under the laws of the District of Columbia.
        (g) Nondiscrimination.--In establishing the conditions of membership
    in the association and in determining the requirements for serving on
    the board of directors or as an officer of the association, the
    association may not discriminate on the basis of race, color, religion,
    sex, handicap, age, or national origin.

    SEC. 1509. <<NOTE: 36 USC 5809.>>  LIABILITY.

        The association shall be liable for the acts of its officers,
    directors, employees, and agents whenever such individuals act within
    the scope of their authority.

    SEC. 1510. <<NOTE: 36 USC 5810.>>  MAINTENANCE AND INSPECTION OF BOOKS
                AND RECORDS.

        (a) Books and Records of Account.--The association shall keep
    correct and complete books and records of account and minutes of any
    proceeding of the association involving any of its members, the board of
    directors, or any committee having authority under the board of
    directors.
        (b) Names and Addresses of Members.--The association shall keep at
    its principal office a record of the names and addresses of all members
    having the right to vote in any proceeding of the association.
        (c) Right To Inspect Books and Records.--All books and records of
    the association may be inspected by any member having the right to vote
    in any proceeding of the association, or by any agent or attorney of
    such member, for any proper purpose at any reasonable time.
        (d) Application of State Law.--This section may not be construed to
    contravene any applicable State law.

    SEC. 1511. AUDIT OF FINANCIAL TRANSACTIONS.

        The first section of the Act entitled ``An Act to provide for audit
    of accounts of private corporations established under Federal law'',
    approved August 30, 1964 (36 U.S.C. 1101), is amended--
                (1) by redesignating the paragraph (77) added by section
            1811 of Public Law 104-201 (110 Stat. 2762) as paragraph (78);
            and
                (2) by adding at the end the following:
                ``(79) Air Force Sergeants Association.''.

    SEC. 1512. <<NOTE: 36 USC 5811.>>  ANNUAL REPORT.

        The association shall annually submit to Congress a report
    concerning the activities of the association during the preceding fiscal
    year. The annual report shall be submitted on the same date as the
    report of the audit required by reason of the amendment

    [[Page 111 STAT. 1966]]

    made in section 1511. The annual report shall not be printed as a public
    document.

    SEC. 1513. <<NOTE: 36 USC 5812.>>  RESERVATION OF RIGHT TO ALTER, AMEND,
                OR REPEAL CHARTER.

        The right to alter, amend, or repeal this title is expressly
    reserved to Congress.

    SEC. 1514. <<NOTE: 36 USC 5813.>>  TAX-EXEMPT STATUS REQUIRED AS
                CONDITION OF CHARTER.

        If the association fails to maintain its status as an organization
    exempt from taxation as provided in the Internal Revenue Code of 1986
    the charter granted in this title shall terminate.

    SEC. 1515. <<NOTE: 36 USC 5814.>>  TERMINATION.

        The charter granted in this title shall expire if the association
    fails to comply with any of the provisions of this title.

    SEC. 1516. DEFINITION <<NOTE: 36 USC 5815.>>  OF STATE.

        For purposes of this title, the term ``State'' includes the District
    of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the
    Northern Mariana Islands, and the territories and possessions of the
    United States.

    DIVISION <<NOTE: Military Construction Authorization Act for Fiscal Year
    1998.>>  B--MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 1998''.

                                 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. Correction in authorized uses of funds, Fort Irwin,
               California.

    SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:

                         Army: Inside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 State                       Location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Redstone Arsenal.......     $27,000,000
    Arizona........................  Fort Huachuca..........     $20,000,000
    California.....................  Fort Irwin.............     $11,150,000
                                     Naval Weapons Station,      $23,000,000
                                      Concord.
    Colorado.......................  Fort Carson............     $47,300,000
    Georgia........................  Fort Gordon............     $22,000,000

    [[Page 111 STAT. 1967]]

                                     Hunter Army Air Field,      $54,000,000
                                      Fort Stewart..........
    Hawaii.........................  Schofield Barracks.....     $44,000,000
    Indiana........................  Crane Army Ammunition        $7,700,000
                                      Activity.
    Kansas.........................  Fort Leavenworth.......     $63,000,000
                                     Fort Riley.............     $25,800,000
    Kentucky.......................  Fort Campbell..........     $53,600,000
                                     Fort Knox..............      $7,200,000
    Missouri.......................  Fort Leonard Wood......      $3,200,000
    New Jersey.....................  Fort Monmouth..........      $2,050,000
    New Mexico.....................  White Sands Missile          $6,900,000
                                      Range.
    New York.......................  Fort Drum..............     $24,400,000
    North Carolina.................  Fort Bragg.............     $17,700,000
    Oklahoma.......................  Fort Sill..............     $25,000,000
    South Carolina.................  Naval Weapons Station,       $7,700,000
                                      Charleston.
    Texas..........................  Fort Bliss.............      $7,700,000
                                     Fort Hood..............     $27,200,000
                                     Fort Sam Houston.......     $16,000,000
    Virginia.......................  Fort A.P. Hill.........      $5,400,000
                                     Fort Myer..............      $8,200,000
                                     Fort Story.............      $2,050,000
    Washington.....................  Fort Lewis.............     $33,000,000
    CONUS Classified...............  Classified Location....      $6,500,000
                                                             ---------------
                                           Total............    $598,750,000
    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
    Germany........................  Ansbach................     $22,000,000
                                     Heidelberg.............      $8,800,000
                                     Mannheim...............      $6,200,000
                                     Military Support Group,      $6,000,000
                                      Kaiserslautern........
    Korea..........................  Camp Casey.............      $5,100,000
                                     Camp Castle............      $8,400,000
                                     Camp Humphreys.........     $32,000,000
                                     Camp Red Cloud.........     $23,600,000
                                     Camp Stanley...........      $7,000,000
    Overseas Classified............  Overseas Classified....     $37,000,000
                                                             ---------------
                                           Total............    $156,100,000
    ------------------------------------------------------------------------

    [[Page 111 STAT. 1968]]

    SEC. 2102. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to 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
    ----------------------------------------------------------------------------------------------------------------
    Arizona...............................  Fort Huachuca............  55 Units.....................      $8,000,000
    Hawaii................................  Schofield Barracks.......  132 Units....................     $26,600,000
    Maryland..............................  Fort Meade...............  56 Units.....................      $7,900,000
    New Jersey............................  Picatinny Arsenal........  35 Units.....................      $7,300,000
    North Carolina........................  Fort Bragg...............  174 Units....................     $20,150,000
    Texas.................................  Fort Bliss...............  91 Units.....................     $12,900,000
                                            Fort Hood................  130 Units....................     $18,800,000
                                                                                                     ---------------
                                                                             Total..................    $101,650,000
    ----------------------------------------------------------------------------------------------------------------

        (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
    $9,550,000.

    SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(5)(A), the Secretary of the Army may improve existing
    military family housing units in an amount not to exceed $86,100,000.

    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1997, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Army in the total amount of $2,010,466,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $435,350,000.
                (2) For the military construction projects outside the
            United States authorized by section 2101(b), $156,100,000.
                (3) For unspecified minor military construction projects
            authorized by section 2805 of title 10, United States Code,
            $7,400,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $65,577,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $197,300,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,145,339,000.

    [[Page 111 STAT. 1969]]

                (6) For the construction of the National Range Control
            Center, White Sands Missile Range, New Mexico, authorized by
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 1997 (division B of Public Law 104-201; 110
            Stat. 2763), $18,000,000.
                (7) For the construction of the whole barracks complex
            renewal, Fort Knox, Kentucky, authorized by section 2101(a) of
            the Military Construction Authorization Act for Fiscal Year 1997
            (division B of Public Law 104-201; 110 Stat. 2763), $22,000,000.

        (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) $14,400,000 (the balance of the amount authorized under
            section 2101(a) for the construction of the Force XXI Soldier
            Development School at Fort Hood, Texas);
                (3) $24,000,000 (the balance of the amount authorized under
            section 2101(a) for rail yard expansion at Fort Carson,
            Colorado);
                (4) $43,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a disciplinary barracks
            at Fort Leavenworth, Kansas);
                (5) $42,500,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a barracks at Hunter
            Army Airfield, Fort Stewart, Georgia);
                (6) $17,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a barracks at Fort Sill,
            Oklahoma);
                (7) $14,000,000 (the balance of the amount authorized under
            section 2101(a) for the construction of a missile software
            engineering facility at Redstone Arsenal, Alabama); and
                (8) $8,500,000 (the balance of the amount authorized under
            section 2101(a) for the construction of an aerial gunnery range
            at Fort Drum, New York).

        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (7) of subsection (a) is the sum of
    the amounts authorized in such paragraphs, reduced by $36,600,000, which
    represents the combination of savings resulting from adjustments to
    foreign currency exchange rates for military construction projects and
    the support of military family housing outside the United States.

    SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN,
                CALIFORNIA.

        The Secretary of the Army may carry out a military construction
    project at Fort Irwin, California, to construct a heliport for the
    National Training Center at Barstow-Daggett, California, using the
    following amounts:
                (1) Amounts appropriated pursuant to the authorization of
            appropriations in section 2104(a)(1) of the Military
            Construction Authorization Act for Fiscal Year 1995 (division B
            of Public Law 103-337; 108 Stat. 3029) for a military
            construction project

    [[Page 111 STAT. 1970]]

            involving the construction of an air field at Fort Irwin, as
            authorized by section 2101(a) of such Act (108 Stat. 3027).
                (2) Amounts appropriated pursuant to the authorization of
            appropriations in section 2104(a)(1) of the Military
            Construction Authorization Act for Fiscal Year 1996 (division B
            of Public Law 104-106; 110 Stat. 524) for a military
            construction project involving the construction of an air field
            at Fort Irwin, as authorized by section 2101(a) of such Act (110
            Stat. 523).

                                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 of military construction project at Naval
               Station, Pascagoula, Mississippi, for which funds have been
               appropriated.
    Sec. 2206. Increase in authorization for military construction projects
               at Naval
               Station Roosevelt Roads, Puerto Rico.

    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            $12,250,000
                                      Station, Yuma.........
                                     Navy Detachment, Camp       $11,426,000
                                      Navajo................
    California.....................  Marine Corps Air            $14,020,000
                                      Station, Camp
                                      Pendleton.............
                                     Marine Corps Air             $8,700,000
                                      Station, Miramar......
                                     Marine Corps Air-Ground      $3,810,000
                                      Combat Center,
                                      Twentynine Palms......
                                     Marine Corps Base, Camp     $60,069,000
                                      Pendleton.............
                                     Naval Air Facility, El      $11,000,000
                                      Centro................
                                     Naval Air Station,          $19,600,000
                                      North Island..........
                                     Naval Amphibious Base,      $10,100,000
                                      Coronado..............
                                     Naval Construction           $3,200,000
                                      Battalion Center, Port
                                      Hueneme...............
    Connecticut....................  Naval Submarine Base,       $21,960,000
                                      New London............
    Florida........................  Naval Air Station,           $3,480,000
                                      Jacksonville..........
                                     Naval Air Station,           $1,300,000
                                      Whiting Field.
                                     Naval Station, Mayport.     $17,940,000
    Hawaii.........................  Fort DeRussey..........      $9,500,000
                                     Marine Corps Air            $19,000,000
                                      Station, Kaneohe Bay..
                                     Naval Communications         $3,900,000
                                      and Telecommunications
                                      Area Master Station
                                      Eastern Pacific,
                                      Honolulu..............
                                     Naval Station, Pearl        $25,000,000
                                      Harbor.
    Illinois.......................  Naval Training Center,      $41,220,000
                                      Great Lakes...........

    [[Page 111 STAT. 1971]]

    Indiana........................  Naval Surface Warfare        $4,120,000
                                      Center, Crane.........
    Maryland.......................  Naval Electronics            $2,610,000
                                      System Command, St.
                                      Ingoes................
    Mississippi....................  Naval Air Station,           $7,050,000
                                      Meridian..............
    North Carolina.................  Marine Corps Air             $8,800,000
                                      Station, Cherry Point.
                                     Marine Corps Air            $19,900,000
                                      Station, New River....
    Rhode Island...................  Naval Undersea Warfare       $8,900,000
                                      Center Division,
                                      Newport...............
    South Carolina.................  Marine Corps Air            $17,730,000
                                      Station, Beaufort.....
                                     Marine Corps Reserve         $3,200,000
                                      Detachment Parris
                                      Island................
    Texas..........................  Naval Air Station,             $800,000
                                      Corpus Christi........
    Virginia.......................  AEGIS Training Center,       $6,600,000
                                      Dahlgren.
                                     Fleet Combat Training        $7,000,000
                                      Center, Dam Neck......
                                     Naval Air Station,          $18,240,000
                                      Norfolk...............
                                     Naval Air Station,          $28,000,000
                                      Oceana.
                                     Naval Amphibious Base,       $8,685,000
                                      Little Creek..........
                                     Naval Shipyard,             $29,410,000
                                      Norfolk, Portsmouth...
                                     Naval Station, Norfolk.     $18,850,000
                                     Naval Surface Warfare       $13,880,000
                                      Center, Dahlgren......
                                     Naval Weapons Station,      $14,547,000
                                      Yorktown..............
    Washington.....................  Naval Air Station,           $1,100,000
                                      Whidbey Island.
                                     Puget Sound Naval            $4,400,000
                                      Shipyard, Bremerton...
                                                             ---------------
                                           Total............    $521,297,000
    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
    Bahrain........................  Administrative Support      $30,100,000
                                      Unit, Bahrain.........
    Guam...........................  Naval Communications         $4,050,000
                                      and Telecommunications
                                      Area Master Station
                                      Western Pacific, Guam.
    Italy..........................  Naval Air Station,          $21,440,000
                                      Sigonella.
                                     Naval Support Activity,      $8,200,000
                                      Naples.
    United Kingdom.................  Joint Maritime               $2,330,000
                                      Communications Center,
                                      St. Mawgan............
                                                             ---------------
                                           Total............     $66,120,000
    ------------------------------------------------------------------------

    [[Page 111 STAT. 1972]]

    SEC. 2202. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2204(a)(5)(A), the Secretary of the Navy may construct or acquire family
    housing units (including land acquisition) at the installations, for the
    purposes, and in the amounts set forth in the following table:

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Purpose                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Marine Corps Air Station,  166 Units....................     $28,881,000
                                             Miramar.................
                                            Marine Corps Air-Ground    132 Units....................     $23,891,000
                                             Combat Center,
                                             Twentynine Palms........
                                            Marine Corps Base, Camp    171 Units....................     $22,518,000
                                             Pendleton...............
                                            Naval Air Station,         128 Units....................     $23,226,000
                                             Lemoore.................
                                            Naval Complex, San Diego.  94 Units.....................     $13,500,000
    Hawaii................................  Naval Complex, Pearl       72 Units.....................     $13,000,000
                                             Harbor..................
    Louisiana.............................  Naval Complex, New         100 Units....................     $11,930,000
                                             Orleans.................
    Texas.................................  Naval Complex, Kingsville  212 Units....................     $22,250,000
                                             and Corpus Christi......
    Washington............................  Naval Air Station,         102 Units....................     $16,000,000
                                             Whidbey Island..........
                                                                                                     ---------------
                                                                             Total..................    $175,196,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to the
    authorization of appropriation 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
    $15,100,000.

    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 $203,536,000.

    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1997, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Navy in the total amount of $2,027,339,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $521,297,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $66,120,000.

    [[Page 111 STAT. 1973]]

                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $11,460,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $46,489,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $393,832,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $976,504,000.
                (6) For construction of a bachelor enlisted quarters at
            Naval Hospital, Great Lakes, Illinois, authorized by section
            2201(a) of the Military Construction Authorization Act for
            Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat.
            2766), $5,200,000.
                (7) For construction of a bachelor enlisted quarters at
            Naval Station, Roosevelt Roads, Puerto Rico, authorized by
            section 2201(a) of the Military Construction Authorization Act
            for Fiscal Year 1997 (division B of Public Law 104-201; 110
            Stat. 2767), $14,600,000.
                (8) For construction of a large anecohic chamber facility at
            Patuxent River Naval Air Warfare Center, Maryland, authorized by
            section 2201(a) of the Military Construction Authorization Act
            for Fiscal Year 1993 (division B of Public Law 102-484; 106
            Stat. 2590), $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 2201 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).
        (c) Adjustments.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (8) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by--
                (1) $8,463,000, 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; and
                (2) $8,700,000, which represents the combination of savings
            resulting from adjustments to foreign currency exchange rates
            for military construction projects and the support of military
            family housing outside the United States.

    SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT NAVAL
                STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS HAVE BEEN
                APPROPRIATED.

        (a) Authorization.--The table in section 2201(a) of the Military
    Construction Authorization Act for Fiscal Year 1997 (division B of
    Public Law 104-201; 110 Stat. 2766) is amended--
                (1) by striking out the amount identified as the total and
            inserting in lieu thereof ``$594,982,000''; and
                (2) by inserting after the item relating to Stennis Space
            Center, Mississippi, the following new item:

    [[Page 111 STAT. 1974]]

    ------------------------------------------------------------------------

    ------------------------------------------------------------------------
                                     ``Naval Station,          $4,990,000''.
                                      Pascagoula.
    ------------------------------------------------------------------------

        (b) Conforming Amendments.--Section 2204(a) of such Act (110 Stat.
    2769) is amended--
                (1) in the matter preceding the paragraphs, by striking out
            ``$2,213,731,000'' and inserting in lieu thereof
            ``$2,218,721,000''; and
                (2) in paragraph (1), by striking out ``$579,312,000'' and
            inserting in lieu thereof ``$584,302,000''.

    SEC. 2206. INCREASE IN AUTHORIZATION FOR MILITARY CONSTRUCTION PROJECTS
                AT NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.

        (a) Increase.--The table in section 2201(b) of the Military
    Construction Authorization Act for Fiscal Year 1997 (division B of
    Public Law 104-201; 110 Stat. 2767) is amended--
                (1) by striking out the amount identified as the total and
            inserting in lieu thereof ``$66,150,000''; and
                (2) in the amount column of the item relating to Naval
            Station, Roosevelt Roads, Puerto Rico, by striking out
            ``$23,600,000'' and inserting in lieu thereof ``$24,100,000''.

        (b) Conforming Amendment.--Section 2204(b)(4) of such Act (110 Stat.
    2770) is amended by striking out ``$14,100,000'' and inserting in lieu
    thereof ``$14,600,000''.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
               projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Authorization of military construction project at McConnell
               Air Force Base, Kansas, for which funds have been
               appropriated.

    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.     $14,874,000
    Alaska.........................  Clear Air Station......     $67,069,000
                                     Eielson Air Force Base.     $13,764,000
                                     Elmendorf Air Force          $6,100,000
                                      Base.
                                     Indian Mountain........      $1,991,000
    Arizona........................  Luke Air Force Base....     $10,000,000
    Arkansas.......................  Little Rock Air Force        $3,400,000
                                      Base.
    California.....................  Edwards Air Force Base.      $2,887,000
                                     Vandenberg Air Force        $26,876,000
                                      Base.
    Colorado.......................  Buckley Air National         $6,718,000
                                      Guard Base.
                                     Falcon Air Force            $10,551,000
                                      Station.
                                     Peterson Air Force Base      $4,081,000
                                     United States Air Force     $15,229,000
                                      Academy.
    Florida........................  Eglin Auxiliary Field 9      $6,470,000

    [[Page 111 STAT. 1975]]

                                     MacDill Air Force Base.      $9,643,000
    Georgia........................  Moody Air Force Base...      $6,800,000
                                     Robins Air Force Base..     $27,763,000
    Idaho..........................  Mountain Home Air Force     $30,669,000
                                      Base.
    Kansas.........................  McConnell Air Force         $14,519,000
                                      Base.
    Louisiana......................  Barksdale Air Force         $19,410,000
                                      Base.
    Mississippi....................  Keesler Air Force Base.     $30,855,000
    Missouri.......................  Whiteman Air Force Base     $17,419,000
    Montana........................  Malmstrom Air Force          $4,500,000
                                      Base.
    Nevada.........................  Nellis Air Force Base..      $1,950,000
    New Jersey.....................  McGuire Air Force Base.     $18,754,000
    New Mexico.....................  Kirtland Air Force Base     $20,300,000
    North Carolina.................  Pope Air Force Base....     $10,956,000
    North Dakota...................  Grand Forks Air Force        $8,560,000
                                      Base.
                                     Minot Air Force Base...      $5,200,000
    Ohio...........................  Wright-Patterson Air        $19,350,000
                                      Force Base.
    Oklahoma.......................  Altus Air Force Base...     $11,000,000
                                     Tinker Air Force Base..      $9,655,000
                                     Vance Air Force Base...      $7,700,000
    South Carolina.................  Shaw Air Force Base....      $6,072,000
    South Dakota...................  Ellsworth Air Force          $6,600,000
                                      Base.
    Tennessee......................  Arnold Air Force Base..     $20,650,000
    Texas..........................  Dyess Air Force Base...     $10,000,000
                                     Laughlin Air Force Base      $4,800,000
                                     Randolph Air Force Base      $2,488,000
    Utah...........................  Hill Air Force Base....      $6,470,000
    Virginia.......................  Langley Air Force Base.      $4,031,000
    Washington.....................  Fairchild Air Force         $20,316,000
                                      Base.
                                     McChord Air Force Base.      $6,470,000
    CONUS Classified...............  Classified Location....      $6,175,000
                                                             ---------------
                                           Total............    $559,085,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(2), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installations and locations
    outside the United States, and in the amounts, set forth in the
    following table:

                      Air Force: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                Country                      Location             Amount
    ------------------------------------------------------------------------
    Germany........................  Spangdahlem Air Base...     $18,500,000
    Italy..........................  Aviano Air Base........     $15,220,000
    Korea..........................  Kunsan Air Base........     $10,325,000
    Portugal.......................  Lajes Field, Azores....      $4,800,000
    United Kingdom.................  Royal Air Force,            $11,400,000
                                      Lakenheath.
    Overseas Classified............  Classified Location....     $29,100,000
                                                             ---------------
                                           Total............     $89,345,000
    ------------------------------------------------------------------------

    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

    [[Page 111 STAT. 1976]]

    installations, for the purposes, and in the amounts set forth in the
    following table:

                                                Air Force: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Purpose                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Edwards Air Force Base...  51 Units.....................      $8,500,000
                                            Travis Air Force Base....  70 Units.....................      $9,714,000
                                            Vandenberg Air Force Base  108 Units....................     $17,100,000
    Delaware..............................  Dover Air Force Base.....  Ancillary Facility...........        $831,000
    District of Columbia..................  Bolling Air Force Base...  46 Units.....................      $5,100,000
    Florida...............................  MacDill Air Force Base...  58 Units.....................     $10,000,000
                                            Tyndall Air Force Base...  32 Units.....................      $4,200,000
    Georgia...............................  Robins Air Force Base....  60 Units.....................      $6,800,000
    Idaho.................................  Mountain Home Air Force    60 Units.....................     $11,032,000
                                             Base....................
    Kansas................................  McConnell Air Force Base.  19 Units.....................      $2,951,000
                                            McConnell Air Force Base.  Ancillary Facility...........        $581,000
    Mississippi...........................  Columbus Air Force Base..  50 Units.....................      $6,200,000
                                            Keesler Air Force Base...  40 Units.....................      $5,000,000
    Montana...............................  Malmstrom Air Force Base.  100 Units....................     $17,842,000
    New Mexico............................  Kirtland Air Force Base..  180 Units....................     $20,900,000
    North Dakota..........................  Grand Forks Air Force      42 Units.....................      $7,936,000
                                             Base....................
    Texas.................................  Dyess Air Force Base.....  70 Units.....................     $10,503,000
                                            Goodfellow Air Force Base  3 Units......................        $500,000
                                            Lackland Air Force Base..  50 Units.....................      $7,400,000
    Wyoming...............................  F. E. Warren Air Force     52 Units.....................      $6,853,000
                                             Base....................
                                                                                                     ---------------
                                                                             Total..................    $159,943,000
    ----------------------------------------------------------------------------------------------------------------

        (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
    $11,971,000.

    SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2304(a)(5)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $123,795,000.

    [[Page 111 STAT. 1977]]

    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1997, for military
    construction, land acquisition, and military family housing functions of
    the Department of the Air Force in the total amount of $1,791,640,000 as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $559,085,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $89,345,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $8,545,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $44,880,000.
                (5) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $295,709,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $830,234,000.

        (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) Adjustments.--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) $23,858,000, which represents the combination of project
            savings in military construction resulting from favorable bids,
            reduced overhead costs, and cancellations due to force structure
            changes; and
                (2) $12,300,000, which represents the combination of savings
            resulting from adjustments to foreign currency exchange rates
            for military construction projects and the support of military
            family housing outside the United States.

    SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL
                AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN
                APPROPRIATED.

        (a) Authorization.--The table in section 2301(a) of the Military
    Construction Authorization Act for Fiscal Year 1997 (division B of
    Public Law 104-201; 110 Stat. 2771) is amended--
                (1) by striking out the amount identified as the total and
            inserting in lieu thereof ``$610,534,000''; and
                (2) in the amount column of the item relating to McConnell
            Air Force Base, Kansas, by striking out ``$19,130,000'' and
            inserting in lieu thereof ``$25,830,000''.

        (b) Conforming Amendments.--Section 2304(a) of such Act (110 Stat.
    2774) is amended--
                (1) in the matter preceding paragraph (1), by striking out
            ``$1,894,594,000'' and inserting in lieu thereof
            ``$1,901,294,000'' and

    [[Page 111 STAT. 1978]]

                (2) in paragraph (1), by striking out ``$603,834,000'' and
            inserting in lieu thereof ``$610,534,000''.

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
               projects.
    Sec. 2402. Military housing planning and design.
    Sec. 2403. Improvements to military family housing units.
    Sec. 2404. Energy conservation projects.
    Sec. 2405. Authorization of appropriations, Defense Agencies.
    Sec. 2406. Clarification of authority relating to fiscal year 1997
               project at Naval
               Station, Pearl Harbor, Hawaii.
    Sec. 2407. Correction in authorized uses of funds, McClellan Air Force
               Base,
               California.
    Sec. 2408. Modification of authority to carry out certain fiscal year
               1995 projects.

    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND ACQUISITION
                PROJECTS.

        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(a)(1), 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
    ------------------------------------------------------------------------
    Defense Commissary Agency......  Fort Lee, Virginia.....      $9,300,000
    Defense Finance and Accounting   Columbus Center, Ohio..      $9,722,000
     Service.......................
                                     Naval Air Station,           $6,906,000
                                      Millington, Tennessee.
                                     Naval Station, Norfolk,     $12,800,000
                                      Virginia..............
                                     Naval Station, Pearl        $10,000,000
                                      Harbor, Hawaii........
    Defense Intelligence Agency....  Bolling Air Force Base,      $7,000,000
                                      District of Columbia..
                                     Redstone Arsenal,           $32,700,000
                                      Alabama.
    Defense Logistics Agency.......  Defense Distribution        $16,656,000
                                      Depot--DDNV, Virginia.
                                     Defense Distribution        $15,500,000
                                      New Cumberland--DDSP,
                                      Pennsylvania..........
                                     Defense Fuel Support        $22,100,000
                                      Point, Craney Island,
                                      Virginia..............
                                     Defense General Supply       $5,200,000
                                      Center, Richmond
                                      (DLA), Virginia.......
                                     Elmendorf Air Force         $21,700,000
                                      Base, Alaska..........
                                     Naval Air Station,           $9,800,000
                                      Jacksonville, Florida.
                                     Truax Field, Wisconsin.      $4,500,000
                                     Westover Air Reserve         $4,700,000
                                      Base, Massachusetts...
                                     CONUS Various, CONUS        $11,275,000
                                      Various...............
    Defense Medical Facilities       Fort Campbell, Kentucky     $13,600,000
     Office........................

    [[Page 111 STAT. 1979]]

                                     Fort Detrick, Maryland.      $4,650,000
                                     Fort Lewis, Washington.      $5,000,000
                                     Hill Air Force Base,         $3,100,000
                                      Utah.
                                     Holloman Air Force           $3,000,000
                                      Base, New Mexico......
                                     Lackland Air Force           $3,000,000
                                      Base, Texas...........
                                     Marine Corps Combat         $19,000,000
                                      Development Command,
                                      Quantico, Virginia....
                                     McGuire Air Force Base,     $35,217,000
                                      New Jersey............
                                     Naval Air Station,           $2,750,000
                                      Pensacola, Florida....
                                     Naval Station, Everett,      $7,500,000
                                      Washington............
                                     Naval Station, San           $2,100,000
                                      Diego, California.....
                                     Naval Submarine Base,        $2,300,000
                                      New London,
                                      Connecticut...........
                                     Robins Air Force Base,      $19,000,000
                                      Georgia...............
                                     Wright-Patterson Air         $2,750,000
                                      Force Base, Ohio......
    National Security Agency.......  Fort Meade, Maryland...     $29,700,000
    Special Operations Command.....  Eglin Auxiliary Field        $8,550,000
                                      9, Florida............
                                     Fort Benning, Georgia..     $12,314,000
                                     Fort Bragg, North            $9,800,000
                                      Carolina.
                                     Mississippi Army             $9,900,000
                                      Ammunition Plant,
                                      Mississippi...........
                                     Naval Station, Pearl         $7,400,000
                                      Harbor, Hawaii........
                                     Naval Amphibious Base,       $7,400,000
                                      Coronado, California..
                                                             ---------------
                                           Total............    $407,890,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(a)(2), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installation and location outside the
    United States, and in the amount, set forth in the following table:

                   Defense Agencies: Outside the United States
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      Location             Amount
    ------------------------------------------------------------------------
    Defense Logistics Agency.......  Defense Fuel Support        $16,000,000
                                      Point, Guam...........
                                                             ---------------
                                         Total..............     $16,000,000
    ------------------------------------------------------------------------

    SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(13)(A), the Secretary of Defense may
    carry out architectural and engineering services and construction design
    activities with respect to the construction or improvement of military
    family housing units in an amount not to exceed $50,000.

    [[Page 111 STAT. 1980]]

    SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriation in
    section 2405(a)(13)(A), the Secretary of Defense may improve existing
    military family housing units in an amount not to exceed $4,900,000.

    SEC. 2404. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(11), the Secretary of Defense may
    carry out energy conservation projects under section 2865 of title 10,
    United States Code.

    SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1997, 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 $2,743,670,000 as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $407,890,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(b), $16,000,000.
                (3) For military construction projects at Anniston Army
            Depot, Alabama, ammunition demilitarization facility, authorized
            by section 2101(a) of the Military Construction Authorization
            Act for Fiscal Year 1993 (division B of the Public Law 102-484;
            106 Stat. 2587), which was originally authorized as an Army
            construction project, but which became a Defense Agencies
            construction project by reason of the amendments made by section
            142 of the National Defense Authorization Act for Fiscal Year
            1995 (Public Law 103-337; 108 Stat. 2689), $9,900,000.
                (4) For military construction projects at Walter Reed Army
            Institute of Research, Maryland, hospital replacement,
            authorized by section 2401(a) of the Military Construction
            Authorization Act for Fiscal Year 1993 (division B of Public Law
            102-484; 106 Stat. 2599), $20,000,000.
                (5) For military construction projects at Umatilla Army
            Depot, Oregon, authorized by section 2401(a) of the Military
            Construction Authorization Act for Fiscal Year 1995 (division B
            of the Public Law 103-337; 108 Stat. 3040), 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(2) of this Act, $57,427,000.
                (6) For military construction projects at Defense Finance
            and Accounting Service, Columbus, Ohio, authorized by section
            2401(a) of the Military Construction Authorization Act of Fiscal
            Year 1996 (division B of Public Law 104-106; 110 Stat. 535),
            $14,200,000.
                (7) For military construction projects at Naval Hospital,
            Portsmouth, Virginia, hospital replacement, authorized by
            section 2401(a) of the Military Construction Authorization Act
            for Fiscal Years 1990 and 1991 (division B of Public Law 101-
            189; 103 Stat. 1640), $17,000,000.

    [[Page 111 STAT. 1981]]

                (8) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $4,000,000.
                (9) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $26,075,000.
                (10) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $48,850,000.
                (11) For energy conservation projects authorized by section
            2404, $25,000,000.
                (12) For base closure and realignment activities as
            authorized by the Defense Base Closure and Realignment Act of
            1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
            note), $2,060,854,000.
                (13) For military family housing functions:
                        (A) For improvement and planning of military family
                    housing and facilities, $4,950,000.
                        (B) For support of military housing (including
                    functions described in section 2833 of title 10, United
                    States Code), $32,724,000 of which not more than
                    $27,673,000 may be obligated or expended for the leasing
                    of military family housing units worldwide.

        (b) Limitation of Total Cost of Construction Projects.--
    Notwithstanding the cost variation authorized by section 2853 of title
    10, United States Code, and any other cost variations authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed 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 (13) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced by
    $1,200,000, which represents the combination of savings resulting from
    adjustments to foreign currency exchange rates for military construction
    projects and the support of military family housing outside the United
    States.

    SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 1997
                PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.

        The table in section 2401(a) of the Military Construction
    Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
    201; 110 Stat. 2775) is amended in the item relating to Special
    Operations Command, Naval Station, Ford Island, Pearl Harbor, Hawaii, in
    the installation or location column by striking out ``Naval Station,
    Ford Island, Pearl Harbor, Hawaii'' and inserting in lieu thereof
    ``Naval Station, Pearl Harbor, Hawaii''.

    SEC. 2407. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN AIR FORCE
                BASE, CALIFORNIA.

        (a) Authority To Use Prior Year Funds.--The Secretary of Defense may
    carry out the military construction projects referred to in subsection
    (b), in the amounts specified in that subsection, using amounts
    appropriated pursuant to the authorization of appropriations in section
    2405(a)(1) of the Military Construction Authorization Act for Fiscal
    Year 1995 (division B of Public Law 103-337; 108 Stat. 3042) for a
    military construction project involving the upgrade of the hospital
    facility at McClellan Air Force

    [[Page 111 STAT. 1982]]

    Base, California, as authorized by section 2401 of such Act (108 Stat.
    3040).
        (b) Covered Projects.--Funds available under subsection (a) may be
    used for military construction projects as follows:
                (1) Construction of an addition to the Aeromedical Clinic at
            Anderson Air Base, Guam, $3,700,000.
                (2) Construction of an occupational health clinic facility
            at Tinker Air Force Base, Oklahoma, $6,500,000.

    SEC. 2408. 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), 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 ``$115,000,000'' in the amount column and inserting
            in lieu thereof ``$134,000,000''; and
                (2) in the item relating to Umatilla Army Depot, Oregon, by
            striking out ``$186,000,000'' in the amount column and inserting
            in lieu thereof ``$187,000,000''.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

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

    SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

        The Secretary of Defense may make contributions for the North
    Atlantic Treaty Organization Security Investment program as provided in
    section 2806 of title 10, United States Code, in an amount not to exceed
    the sum of the amount authorized to be appropriated for this purpose in
    section 2502 and the amount collected from the North Atlantic Treaty
    Organization as a result of construction previously financed by the
    United States.

    SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

        Funds are hereby authorized to be appropriated for fiscal years
    beginning after September 30, 1997, 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 $152,600,000.

    [[Page 111 STAT. 1983]]

                 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
               acquisition projects.
    Sec. 2602. Authorization of military construction projects for which
               funds have been appropriated.
    Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
                ACQUISITION PROJECTS.

        (a) In General.--There are authorized to be appropriated for fiscal
    years beginning after September 30, 1997, 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, $113,750,000; and
                        (B) for the Army Reserve, $66,267,000.
                (2) For the Department of the Navy, for the Naval and Marine
            Corps Reserve, $47,329,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United States,
                    $190,444,000; and
                        (B) for the Air Force Reserve, $30,243,000.

        (b) Adjustment.--The amount authorized to be appropriated pursuant
    to subsection (a)(1)(B) is reduced by $7,900,000, 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. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR WHICH
                FUNDS HAVE BEEN APPROPRIATED.

        (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of section
    2601 of the Military Construction Authorization Act for Fiscal Year 1997
    (division B of Public Law 104-201; 110 Stat. 2780) is amended by
    striking out ``$59,194,000'' and inserting in lieu thereof
    ``$65,094,000'' to account for a project involving additions and
    alterations to an Army aviation support facility in Hilo, Hawaii.
        (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph (2) of
    such section is amended by striking out ``$32,779,000'' and inserting in
    lieu thereof ``$37,579,000'' to account for a project for the
    construction of a bachelor enlisted quarters at Naval Air Station, New
    Orleans, Louisiana.

    SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, UTAH.

        With regard to the military construction project for the Army
    Reserve concerning construction of a reserve center and organizational
    maintenance shop at Camp Williams, 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 toward

    [[Page 111 STAT. 1984]]

    land acquisition, site preparation, and relocation costs 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 1995
               projects.
    Sec. 2703. Extension of authorizations of certain fiscal year 1994
               projects.
    Sec. 2704. Extension of authorizations of certain fiscal year 1993
               projects.
    Sec. 2705. Extension of authorizations of certain fiscal year 1992
               projects.
    Sec. 2706. Extension of availability of funds for construction of
               relocatable over-the-horizon radar, Naval Station Roosevelt
               Roads, Puerto Rico.
    Sec. 2707. 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, 2000; or
                (2) the date of the enactment of an Act authorizing funds
            for military construction for fiscal year 2001.

        (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, 2000; or
                (2) the date of the enactment of an Act authorizing funds
            for fiscal year 2001 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 1995
                PROJECTS.

        (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), authorizations for the projects set
    forth in the tables in subsection (b), as provided in section 2101,
    2201, 2202, 2301, 2302, 2401, or 2601 of such Act, shall remain in
    effect until October 1, 1998, or the date of the enactment of an Act
    authorizing funds for military construction for fiscal year 1999,
    whichever is later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

    [[Page 111 STAT. 1985]]

                                      Army: Extension of 1995 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Fort Irwin...............  National Training Center          $10,000,000
                                                                        Airfield Phase I............
    ----------------------------------------------------------------------------------------------------------------

                                     Navy: Extension of 1995 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Maryland..............................  Indian Head Naval Surface  Upgrade Power Plant..........      $4,000,000
                                             Warfare Center..........
                                            Indian Head Naval Surface  Denitrification/Acid Mixing        $6,400,000
                                             Warfare Center..........   Facility....................
    Virginia..............................  Norfolk Marine Corps       Bachelor Enlisted Quarters...      $6,480,000
                                             Security Force Battalion
                                             Atlantic................
    Washington............................  Naval Station, Everett...  New Construction (Housing            $780,000
                                                                        Office).....................
    CONUS Classified......................  Classified Location......  Aircraft Fire and Rescue and       $2,200,000
                                                                        Vehicle Maintenance
                                                                        Facilities..................
    ----------------------------------------------------------------------------------------------------------------

                                   Air Force: Extension of 1995 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Beale Air Force Base.....  Consolidated Support Center..     $10,400,000
                                            Los Angeles Air Force      Family Housing (50 units)....      $8,962,000
                                             Station.................
    North Carolina........................  Pope Air Force Base......  Combat Control Team Facility.      $2,450,000
                                            Pope Air Force Base......  Fire Training Facility.......      $1,100,000
    ----------------------------------------------------------------------------------------------------------------

                               Defense Agencies: Extension of 1995 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama...............................  Anniston Army Depot......  Carbon Filtration System.....      $5,000,000
    Arkansas..............................  Pine Bluff Arsenal.......  Ammunition Demilitarization      $115,000,000
                                                                        Facility....................
    California............................  Defense Contract           Administrative Building......      $5,100,000
                                             Management Area Office,
                                             El Segundo..............

    [[Page 111 STAT. 1986]]

    Oregon................................  Umatilla Army Depot......  Ammunition Demilitarization      $186,000,000
                                                                        Facility....................
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1995 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Camp Roberts.............  Modify Record Fire/                $3,910,000
                                                                        Maintenance Shop............
                                            Camp Roberts.............  Combat Pistol Range..........        $952,000
    Pennsylvania..........................  Fort Indiantown Gap......  Barracks.....................      $6,200,000
    ----------------------------------------------------------------------------------------------------------------

                                 Naval Reserve: Extension of 1995 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Georgia...............................  Naval Air Station          Training Center..............      $2,650,000
                                             Marietta................
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994
                PROJECTS.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1994 (division B of
    Public Law 103-160, 107 Stat. 1880), authorizations for the projects set
    forth in the tables in subsection (b), as provided in section 2201 or
    2601 of such Act and extended by section 2702 of the Military
    Construction Authorization Act for Fiscal Year 1997 (division B of
    Public Law 104-201; 110 Stat. 2783), shall remain in effect until
    October 1, 1998, or the date of the enactment of an Act authorizing
    funds for military construction for fiscal year 1999, whichever is
    later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                     Navy: Extension of 1994 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or Location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Camp Pendleton Marine      Sewage Facility..............      $7,930,000
                                             Corps Base..............
    Connecticut...........................  New London Naval           Hazardous Waste Transfer           $1,450,000
                                             Submarine Base..........   Facility....................
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1994 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or Location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    New Mexico..............................  White Sands Missile Range.  MATES.....................      $3,570,000
    ----------------------------------------------------------------------------------------------------------------

    [[Page 111 STAT. 1987]]

    SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993
                PROJECTS.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1993 (division B of
    Public Law 102-484; 106 Stat. 2602), the authorizations for the projects
    set forth in the tables in subsection (b), as provided in section 2101
    or 2601 of such Act and extended by section 2702 of the Military
    Construction Authorization Act for Fiscal Year 1996 (division B of
    Public Law 104-106; 110 Stat. 541) and section 2703 of the Military
    Construction Authorization Act for Fiscal Year 1997 (division B of
    Public Law 104-201; 110 Stat. 2784), shall remain in effect until
    October 1, 1998, or the date of the enactment of an Act authorizing
    funds for military construction for fiscal year 1999, whichever is
    later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                      Army: Extension of 1993 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Arkansas................................  Pine Bluff Arsenal........  Ammunition                     $15,000,000
                                                                           Demilitarization Support
                                                                           Facility.................
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1993 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or Location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Alabama.................................  Union Springs.............  Armory....................        $813,000
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992
                PROJECTS.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1992 (division B of
    Public Law 102-190; 105 Stat. 1535), authorizations for the projects set
    forth in the table in subsection (b), as provided in section 2101 of
    such Act and extended by section 2702 of the Military Construction
    Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
    337; 108 Stat. 3047), section 2703 of the Military Construction
    Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
    106; 110 Stat. 543), and section 2704 of the Military Construction
    Authorization Act for Fiscal Year 1997 (division B of Public Law 104-
    201; 110 Stat. 2785), shall remain in effect until October 1, 1998, or
    the date of the enactment of an Act authorizing funds for military
    construction for fiscal year 1999, whichever is later.
        (b) Table.--The table referred to in subsection (a) is as follows:

                                     Army: Extension of 1992 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                      State                    Installation or location             Project               Amount
    ----------------------------------------------------------------------------------------------------------------
    Oregon..................................  Umatilla Army Depot.......  Ammunition                      $3,600,000
                                                                           Demilitarization Support
                                                                           Facility.................
                                              Umatilla Army Depot.......  Ammunition                      $7,500,000
                                                                           Demilitarization
                                                                           Utilities................
    ----------------------------------------------------------------------------------------------------------------

    [[Page 111 STAT. 1988]]

    SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION OF
                RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION ROOSEVELT
                ROADS, PUERTO RICO.

        Amounts appropriated under the heading ``Drug Interdiction and
    Counter-Drug Activities, Defense'' in title VI of the Department of
    Defense Appropriations Act, 1995 (Public Law 103-335; 108 Stat. 2615),
    and transferred to the ``Military Construction, Navy'' appropriation for
    construction of a relocatable over-the-horizon radar at Naval Station
    Roosevelt Roads, Puerto Rico, shall remain available for that purpose
    until the later of--
                (1) October 1, 1998; or
                (2) the date of enactment of an Act authorizing funds for
            military construction for fiscal year 1999.

    SEC. 2707. EFFECTIVE DATE.

        Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on
    the later of--
                (1) October 1, 1997; or
                (2) the date of the enactment of this Act.

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Use of mobility enhancement funds for unspecified minor
               construction.
    Sec. 2802. Limitation on use of operation and maintenance funds for
               facility repair projects.
    Sec. 2803. Leasing of military family housing, United States Southern
               Command, Miami, Florida.
    Sec. 2804. Use of financial incentives provided as part of energy
               savings and water conservation activities.
    Sec. 2805. Congressional notification requirements regarding use of
               Department of Defense housing funds for investments in
               nongovernmental entities.

             Subtitle B--Real Property and Facilities Administration

    Sec. 2811. Increase in ceiling for minor land acquisition projects.
    Sec. 2812. Permanent authority regarding conveyance of utility systems.
    Sec. 2813. Administrative expenses for certain real property
               transactions.
    Sec. 2814. Screening of real property to be conveyed by Department of
               Defense.
    Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78,
               Brigham City, Utah.
    Sec. 2816. Fire protection and hazardous materials protection at Fort
               Meade,
               Maryland.

                Subtitle C--Defense Base Closure and Realignment

    Sec. 2821. Consideration of military installations as sites for new
               Federal facilities.
    Sec. 2822. Adjustment and diversification assistance to enhance
               performance of military family support services by private
               sector sources.
    Sec. 2823. Security, fire protection, and other services at property
               formerly associated with Red River Army Depot, Texas.
    Sec. 2824. Report on closure and realignment of military installations.
    Sec. 2825. Sense of Senate regarding utilization of savings derived from
               base
               closure process.
    Sec. 2826. Prohibition against certain conveyances of property at Naval
               Station, Long Beach, California.

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

    Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
    Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant,
               Oklahoma.
    Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,
               Illinois.
    Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.

    [[Page 111 STAT. 1989]]

    Sec. 2835. Land conveyances, Fort Dix, New Jersey.
    Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
    Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral
               County, Nevada.
    Sec. 2838. Expansion of land conveyance authority, Indiana Army
               Ammunition Plant, Charlestown, Indiana.
    Sec. 2839. Modification of land conveyance, Lompoc, California.
    Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal,
               Colorado.
    Sec. 2841. Correction of land conveyance authority, Army Reserve Center,
               Anderson, South Carolina.

                            Part II--Navy Conveyances

    Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick,
               Maine.
    Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No.
               464,
               Oyster Bay, New York.
    Sec. 2853. Correction of lease authority, Naval Air Station, Meridian,
               Mississippi.

                         Part III--Air Force Conveyances

    Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
    Sec. 2862. Land conveyance, March Air Force Base, California.
    Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
    Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
    Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre
               Training Site, Montana.
    Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor,
               Maine.
    Sec. 2867. Study of land exchange options, Shaw Air Force Base, South
               Carolina.

                            Subtitle E--Other Matters

    Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
    Sec. 2872. Long-term lease of property, Naples, Italy.
    Sec. 2873. Designation of military family housing at Lackland Air Force
               Base, Texas, in honor of Frank Tejeda, a former Member of the
               House of
               Representatives.
    Sec. 2874. Fiber-optics based telecommunications linkage of military
               installations.

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

    SEC. 2801. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED MINOR
                CONSTRUCTION.

        (a) Congressional Notification.--Subsection (b)(1) of section 2805
    of title 10, United States Code, is amended by adding at the end the
    following new sentence: ``This <<NOTE: Applicability.>>  paragraph shall
    apply even though the project is to be carried out using funds made
    available to enhance the deployment and mobility of military forces and
    supplies.''.

        (b) Restriction on Use of Operation and Maintenance Funds.--
    Subsection (c) of such section is amended--
                (1) in paragraph (1), by striking out ``paragraph (2)'' and
            inserting in lieu thereof ``paragraphs (2) and (3)''; and
                (2) by adding at the end the following new paragraph:

        ``(3) The limitations specified in paragraph (1) shall not apply to
    an unspecified minor military construction project if the project is to
    be carried out using funds made available to enhance the deployment and
    mobility of military forces and supplies.''.
        (c) Technical Amendments.--Such section is further
    amended--
                (1) in subsection (a)(1)--
                        (A) by striking out ``minor military construction
                    projects'' in the first sentence and inserting in lieu
                    thereof ``unspecified minor military construction
                    projects'';
                        (B) by striking out ``A minor'' in the second
                    sentence and inserting in lieu thereof ``An unspecified
                    minor''; and

    [[Page 111 STAT. 1990]]

                        (C) by striking out ``a minor'' in the last sentence
                    and inserting in lieu thereof ``an unspecified minor'';
                (2) in subsection (b)(1), by striking out ``A minor'' and
            inserting in lieu thereof ``An unspecified minor'';
                (3) in subsection (b)(2), by striking out ``a minor'' and
            inserting in lieu thereof ``an unspecified minor''; and
                (4) in subsection (c), by striking out ``unspecified
            military'' each place it appears and inserting in lieu thereof
            ``unspecified minor military''.

    SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE FUNDS FOR
                FACILITY REPAIR PROJECTS.

        Section 2811 of title 10, United States Code, is amended by adding
    at the end the following new subsections:
    <<NOTE: Reports.>>     ``(d) Congressional Notification.--When a
    decision is made to carry out a repair project under this section with
    an estimated cost in excess of $10,000,000, the Secretary concerned
    shall submit to the appropriate committees of Congress a report
    containing--
                ``(1) the justification for the repair project and the
            current estimate of the cost of the project; and
                ``(2) the justification for carrying out the project under
            this section.

        ``(e) Repair Project Defined.--In this section, the term `repair
    project' means a project to restore a real property facility, system, or
    component to such a condition that it may effectively be used for its
    designated functional purpose.''.

    SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES SOUTHERN
                COMMAND, MIAMI, FLORIDA.

        (a) Leases To Exceed Maximum Rental.--Section 2828(b) of title 10,
    United States Code, is amended--
                (1) in paragraph (2), by striking out ``paragraph (3)'' and
            inserting in lieu thereof ``paragraphs (3) and (4)'';
                (2) by redesignating paragraph (4) as paragraph (5); and
                (3) by inserting after paragraph (3) the following new
            paragraph:

        ``(4) The Secretary of the Army may lease not more than eight
    housing units in the vicinity of Miami, Florida, for key and essential
    personnel, as designated by the Secretary, for the United States
    Southern Command for which the expenditure for the rental of such units
    (including the cost of utilities, maintenance, and operation, including
    security enhancements) exceeds the expenditure limitations in paragraphs
    (2) and (3). The total amount for all leases under this paragraph may
    not exceed $280,000 per year, and no lease on any individual housing
    unit may exceed $60,000 per year.''.
        (b) Conforming Amendment.--Paragraph (5) of such section, as
    redesignated by subsection (a)(2), is amended by striking out
    ``paragraphs (2) and (3)'' and inserting in lieu thereof ``paragraphs
    (2), (3), and (4)''.

    SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY
                SAVINGS AND WATER CONSERVATION ACTIVITIES.

        (a) Energy Savings.--Section 2865 of title 10, United States Code,
    is amended--
                (1) in subsection (b)--

    [[Page 111 STAT. 1991]]

                        (A) in paragraph (1), by striking out ``and
                    financial incentives described in subsection (d)(2)'';
                        (B) in paragraph (2), by striking out ``section
                    2866(b)'' both places it appears and inserting in lieu
                    thereof ``section 2866(a)(3)''; and
                        (C) by adding at the end the following new
                    paragraph:

        ``(3) Financial incentives received from gas or electric utilities
    under subsection (d)(2), and from utilities for management of water
    demand or water conservation under section 2866(a)(2) of this title,
    shall be credited to an appropriation designated by the Secretary of
    Defense. Amounts so credited shall be merged with the appropriation to
    which credited and shall be available for the same purposes and the same
    period as the appropriation with which merged.''; and
                (2) in subsection (f), by adding at the end the following
            new sentence: ``The Secretary shall also include in each report
            the types and amount of financial incentives received under
            subsection (d)(2) and section 2866(a)(2) of this title during
            the period covered by the report and the appropriation account
            or accounts to which the incentives were credited.''.

        (b) Water Conservation.--Section 2866(b) of such title is amended to
    read as follows:
        ``(b) Use of Financial Incentives and Water Cost Savings.--(1)
    Financial incentives received under subsection (a)(2) shall be used as
    provided in section 2865(b)(3) of this title.
        ``(2) Water cost savings realized under subsection (a)(3) shall be
    used as provided in section 2865(b)(2) of this title.''.

    SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING USE OF
                DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS IN
                NONGOVERNMENTAL ENTITIES.

        Section 2875 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(e) Congressional Notification Required.--Amounts in the
    Department of Defense Family Housing Improvement Fund or the Department
    of Defense Military Unaccompanied Housing Improvement Fund may be used
    to make a cash investment under this section in a nongovernmental entity
    only after the end of the 30-day period beginning on the date the
    Secretary of Defense submits written notice of, and justification for,
    the investment to the appropriate committees of Congress.''.

             Subtitle B--Real Property And Facilities Administration

    SEC. 2811. INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.

        (a) Increase.--Section 2672 of title 10, United States Code, is
    amended by striking out ``$200,000'' both places it appears in
    subsection (a) and inserting in lieu thereof ``$500,000''.
        (b) Clerical Amendments.--(1) The section heading for such section
    is amended to read as follows:

    [[Page 111 STAT. 1992]]

    ``Sec. 2672. Acquisition: interests in land when cost is not more than
                            $500,000''.

        (2) The table of sections at the beginning of chapter 159 of such
    title is amended by striking out the item relating to section 2672 and
    inserting in lieu thereof the following new item:

    ``2672. Acquisition: interests in land when cost is not more than
               $500,000.''.

    SEC. 2812. PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.

        (a) In General.--Chapter 159 of title 10, United States Code, is
    amended by inserting after section 2687 the following new section:

    ``Sec. 2688. Utility systems: conveyance authority

        ``(a) Conveyance Authority.--The Secretary of a military department
    may convey a utility system, or part of a utility system, under the
    jurisdiction of the Secretary to a municipal, private, regional,
    district, or cooperative utility company or other entity. The conveyance
    may consist of all right, title, and interest of the United States in
    the utility system or such lesser estate as the Secretary considers
    appropriate to serve the interests of the United States.
        ``(b) Selection of Conveyee.--If more than one utility or entity
    referred to in subsection (a) notifies the Secretary concerned of an
    interest in a conveyance under such subsection, the Secretary shall
    carry out the conveyance through the use of competitive procedures.
        ``(c) Consideration.--(1) The Secretary concerned shall require as
    consideration for a conveyance under subsection (a) an amount equal to
    the fair market value (as determined by the Secretary) of the right,
    title, or interest of the United States conveyed. The consideration may
    take the form of--
                ``(A) a lump sum payment; or
                ``(B) a reduction in charges for utility services provided
            by the utility or entity concerned to the military installation
            at which the utility system is located.

        ``(2) If the utility services proposed to be provided as
    consideration under paragraph (1) are subject to regulation by a Federal
    or State agency, any reduction in the rate charged for the utility
    services shall be subject to establishment or approval by that agency.
        ``(d) Treatment of Payments.--(1) A lump sum payment received under
    subsection (c) shall be credited, at the election of the Secretary
    concerned--
                ``(A) to an appropriation of the military department
            concerned available for the procurement of the same utility
            services as are provided by the utility system conveyed under
            this section;
                ``(B) to an appropriation of the military department
            available for carrying out energy savings projects or water
            conservation projects; or
                ``(C) to an appropriation of the military department
            available for improvements to other utility systems.

        ``(2) Amounts so credited shall be merged with funds in the
    appropriation to which credited and shall be available for the same
    purposes, and subject to the same conditions and limitations, as the
    appropriation with which merged.

    [[Page 111 STAT. 1993]]

        ``(e) Notice-and-Wait Requirement.--The Secretary concerned may not
    make a conveyance under subsection (a) until--
                ``(1) the Secretary submits 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 an economic
            analysis (based upon accepted life-cycle costing procedures
            approved by the Secretary of Defense) demonstrating that--
                        ``(A) the long-term economic benefit of the
                    conveyance to the United States exceeds the long-term
                    economic cost of the conveyance to the United States;
                    and
                        ``(B) the conveyance will reduce the long-term costs
                    of the United States for utility services provided by
                    the utility system concerned; and
                ``(2) a period of 21 days has elapsed after the date on
            which the economic analysis is received by the committees.

        ``(f) Additional Terms and Conditions.--The Secretary concerned may
    require such additional terms and conditions in
    connection with a conveyance under subsection (a) as the Secretary
    considers appropriate to protect the interests of the United States.
        ``(g) Utility System Defined.--(1) In this section, the term
    `utility system' means any of the following:
                ``(A) A system for the generation and supply of electric
            power.
                ``(B) A system for the treatment or supply of water.
                ``(C) A system for the collection or treatment of
            wastewater.
                ``(D) A system for the generation or supply of steam, hot
            water, and chilled water.
                ``(E) A system for the supply of natural gas.
                ``(F) A system for the transmission of telecommunications.

        ``(2) The term `utility system' includes the following:
                ``(A) Equipment, fixtures, structures, and other
            improvements utilized in connection with a system referred to in
            paragraph (1).
                ``(B) Easements and rights-of-way associated with a system
            referred to in that paragraph.

        ``(h) Limitation.--This section shall not apply to projects
    constructed or operated by the Army Corps of Engineers under its civil
    works authorities.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2687 the following new item:

    ``2688. Utility systems: conveyance authority.''.

    SEC. 2813. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY
                TRANSACTIONS.

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

    ``Sec. 2695. Acceptance of funds to cover administrative expenses
                            relating to certain real property transactions

        ``(a) Authority To Accept.--In connection with a real property
    transaction referred to in subsection (b) with a non-Federal person or
    entity, the Secretary of a military department may accept

    [[Page 111 STAT. 1994]]

    amounts provided by the person or entity to cover administrative
    expenses incurred by the Secretary in entering into the transaction.
        ``(b) Covered <<NOTE: Applicability.>>  Transactions.--Subsection
    (a) applies to the following transactions:
                ``(1) The exchange of real property.
                ``(2) The grant of an easement over, in, or upon real
            property of the United States.
                ``(3) The lease or license of real property of the United
            States.

        ``(c) Use of Amounts Collected.--Amounts collected under subsection
    (a) 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.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 159 of such title is amended by adding at the end the following
    new item:

    ``2695. Acceptance of funds to cover administrative expenses relating to
               certain real property transactions.''.

    SEC. 2814. SCREENING OF REAL PROPERTY TO BE CONVEYED BY DEPARTMENT OF
                DEFENSE.

        (a) Requirement.--(1) Chapter 159 of title 10, United States Code,
    is amended by inserting after section 2695, as added by section 2813,
    the following new section:

    ``Sec. 2696. Screening of real property for further Federal use before
                            conveyance

        ``(a) Screening Requirement.--The Secretary concerned may not convey
    real property that is authorized or required to be conveyed, whether for
    or without consideration, by any provision of law unless the
    Administrator of General Services has screened the property for further
    Federal use in accordance with the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 471 et seq.).
        ``(b) Time for <<NOTE: Notification.>>  Screening.--(1) Before the
    end of the 30-day period beginning on the date of the enactment of a
    provision of law authorizing or requiring the conveyance of a parcel of
    real property by the Secretary concerned, the Administrator of General
    Services shall complete the screening required by paragraph (1) with
    regard to the real property and notify the Secretary concerned of the
    results of the screening. The notice shall include--
                ``(A) the name of the Federal agency requesting transfer of
            the property;
                ``(B) the proposed use to be made of the property by the
            Federal agency; and
                ``(C) the fair market value of the property, including any
            improvements thereon, as estimated by the Administrator.

        ``(2) If the Administrator fails to complete the screening and
    notify the Secretary concerned within such period, the Secretary
    concerned shall proceed with the conveyance of the real property as
    provided in the provision of law authorizing or requiring the
    conveyance.

    [[Page 111 STAT. 1995]]

        ``(c) Notice of Further Federal Use.--If the Administrator of
    General Services notifies the Secretary concerned under subsection (b)
    that further Federal use of a parcel of real property authorized or
    required to be conveyed by any provision of law is requested by a
    Federal agency, the Secretary concerned shall submit a copy of the
    notice to Congress.
        ``(d) Congressional Disapproval.--If the Secretary concerned submits
    a notice under subsection (c) with regard to a parcel of real property,
    the Secretary concerned may not proceed with the conveyance of the real
    property as provided in the provision of law authorizing or requiring
    the conveyance if Congress enacts a law rescinding the conveyance
    authority or requirement before the end of the 180-day period beginning
    on the date on which the Secretary concerned submits the notice.
        ``(e) Excepted Conveyance Authorities.--The screening requirements
    of this section shall not apply to real property authorized or required
    to be conveyed under any of the following provisions of law:
                ``(1) Section 2687 of this title.
                ``(2) Title II of the Defense Authorization Amendments and
            Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C.
            2687 note).
                ``(3) 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).
                ``(4) Any provision of law authorizing the closure or
            realignment of a military installation that is enacted after the
            date of enactment of the National Defense Authorization Act for
            Fiscal Year 1998.
                ``(5) Title II of the Federal Property and Administrative
            Services Act of 1949 (40 U.S.C. 481 et seq.).
                ``(6) Any specific provision of law authorizing or requiring
            the transfer of administrative jurisdiction over a parcel of
            real property between Federal agencies.''.

        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2695, as added
    by section 2813, the following new item:

    ``2696. Screening of real property for further Federal use before
               conveyance.''.

        (b) Applicability.--Section <<NOTE: 10 USC 2696 note.>>  2696 of
    title 10, United States Code, as added by subsection (a) of this
    section, shall apply with respect to any real property authorized or
    required to be conveyed under a provision of law covered by such section
    that is enacted after December 31, 1997.

    SEC. 2815. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT NO. 78,
                BRIGHAM CITY, UTAH.

        Notwithstanding section 204(h)(2)(A) of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)(A)), the entire
    amount deposited by the Administrator of General Services in the special
    account in the Treasury (established under section 204(h)(2) of such
    Act) as a result of the sale of Air Force Plant No. 78, Brigham City,
    Utah, shall be available, to the extent provided in appropriations Acts,
    to the Secretary of the Air Force for facility maintenance, facility
    repair, and environmental restoration at other industrial plants of the
    Air Force.

    [[Page 111 STAT. 1996]]

    SEC. 2816. FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION AT FORT
                MEADE, MARYLAND.

        (a) Plan.--Not later than 120 days after the date of the enactment
    of this Act, the Secretary of the Army shall submit to the congressional
    defense committees a plan to address the
    requirements for fire protection services and hazardous materials
    protection services at Fort Meade, Maryland, including the National
    Security Agency at Fort Meade, as identified in the preparedness
    evaluation report of the Army Corps of Engineers regarding Fort Meade.
        (b) Elements.--The plan shall include the following:
                (1) A schedule for the implementation of the plan.
                (2) A detailed list of funding options available to provide
            centrally located modern facilities and equipment to meet
            current requirements for fire protection services and hazardous
            materials protection services at Fort Meade.

                Subtitle C--Defense Base Closure and Realignment

    SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES FOR NEW
                FEDERAL FACILITIES.

        (a) 1988 Law.--Section 204(b)(5) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended--
                (1) in subparagraph (A), by striking out ``subparagraph
            (B)'' and inserting in lieu thereof ``subparagraphs (B) and
            (C)''; and
                (2) by adding at the end the following new subparagraph:

        ``(C)(i) Before acquiring non-Federal real property as the location
    for a new or replacement Federal facility of any type, the head of the
    Federal agency acquiring the property shall consult with the Secretary
    regarding the feasibility and cost advantages of using Federal property
    or facilities at a military installation closed or realigned or to be
    closed or realigned under this title as the location for the new or
    replacement facility. In considering the availability and suitability of
    a specific military installation, the Secretary and the head of the
    Federal agency involved shall obtain the concurrence of the
    redevelopment authority with respect to the installation and comply with
    the redevelopment plan for the installation.
        ``(ii) Not <<NOTE: Reports.>>  later than 30 days after acquiring
    non-Federal real property as the location for a new or replacement
    Federal facility, the head of the Federal agency acquiring the property
    shall submit to Congress a report containing the results of the
    consultation under clause (i) and the reasons why military installations
    referred to in such clause that are located within the area to be served
    by the new or replacement Federal facility or within a 200-mile radius
    of the new or replacement facility, whichever area is greater, were
    considered to be unsuitable or unavailable for the site of the new or
    replacement facility.

        ``(iii) This subparagraph <<NOTE: Applicability. Effective
    date. Termination date.>>  shall apply during the period beginning on
    the date of the enactment of the National Defense Authorization Act for
    Fiscal Year 1998 and ending on July 31, 2001.''.

    [[Page 111 STAT. 1997]]

        (b) 1990 Law.--Section 2905(b)(5) of the Defense Base Closure and
    Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687 note) is
    amended--
                (1) in subparagraph (A), by striking out ``subparagraph
            (B)'' and inserting in lieu thereof ``subparagraphs (B) and
            (C)''; and
                (2) by adding at the end the following new subparagraph:

        ``(C)(i) Before acquiring non-Federal real property as the location
    for a new or replacement Federal facility of any type, the head of the
    Federal agency acquiring the property shall consult with the Secretary
    regarding the feasibility and cost advantages of using Federal property
    or facilities at a military installation closed or realigned or to be
    closed or realigned under this part as the location for the new or
    replacement facility. In considering the availability and suitability of
    a specific military installation, the Secretary and the head of the
    Federal agency involved shall obtain the concurrence of the
    redevelopment authority with respect to the installation and comply with
    the redevelopment plan for the installation.
        ``(ii) Not later <<NOTE: Reports.>>  than 30 days after acquiring
    non-Federal real property as the location for a new or replacement
    Federal facility, the head of the Federal agency acquiring the property
    shall submit to Congress a report containing the results of the
    consultation under clause (i) and the reasons why military installations
    referred to in such clause that are located within the area to be served
    by the new or replacement Federal facility or within a 200-mile radius
    of the new or replacement facility, whichever area is greater, were
    considered to be unsuitable or unavailable for the site of the new or
    replacement facility.

        ``(iii) This subparagraph <<NOTE: Applicability. Effective
    date. Termination date.>>  shall apply during the period beginning on
    the date of the enactment of the National Defense Authorization Act for
    Fiscal Year 1998 and ending on July 31, 2001.''.

    SEC. 2822. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO ENHANCE
                PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES BY PRIVATE
                SECTOR SOURCES.

        Section 2391(b)(5) of title 10, United States Code, is amended by
    adding at the end the following new subparagraph:
        ``(C) The Secretary of Defense may also make grants, conclude
    cooperative agreements, and supplement other Federal funds in order to
    assist a State or local government in enhancing the capabilities of the
    government to support efforts of the Department of Defense to privatize,
    contract for, or diversify the performance of military family support
    services in cases in which the capability of the Department to provide
    such services is adversely affected by an action described in paragraph
    (1).''.

    SEC. 2823. SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT PROPERTY
                FORMERLY ASSOCIATED WITH RED RIVER ARMY DEPOT, TEXAS.

        (a) Authority To Enter Into Agreement.--(1) The Secretary of the
    Army may enter into an agreement with the local redevelopment authority
    for Red River Army Depot, Texas, under which agreement the Secretary
    provides security services, fire protection services, or hazardous
    material response services for the authority with respect to the
    property at the depot that is under the jurisdiction of the authority as
    a result of the realignment of the depot under the base closure laws.

    [[Page 111 STAT. 1998]]

        (2) The Secretary may not enter into the agreement unless the
    Secretary determines that the provision of services under the agreement
    is in the best interests of the United States.
        (b) Reimbursement.--The agreement under subsection (a) shall provide
    for reimbursing the Secretary for the services provided by the Secretary
    under the agreement.
        (c) Treatment of Reimbursement.--Any amounts received by the
    Secretary under subsection (b) as reimbursement for services provided
    under the agreement entered into under subsection (a) shall be credited
    to the appropriations providing funds for the services. Amounts so
    credited shall be merged with the appropriations to which credited and
    shall be available for the purposes, and subject to the conditions and
    limitations, for which such appropriations are available.

    SEC. 2824. <<NOTE: 10 USC 2687 note.>>  REPORT ON CLOSURE AND
                REALIGNMENT OF MILITARY INSTALLATIONS.

        (a) Report.--(1) The Secretary of Defense shall prepare and submit
    to the congressional defense committees a report on the costs and
    savings attributable to the rounds of base closures and realignments
    conducted under the base closure laws and on the need, if any, for
    additional rounds of base closures and realignments.
        (2) For purposes of this section, the term ``base closure laws''
    means--
                (A) title II of the Defense Authorization Amendments and
            Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C.
            2687 note); and
                (B) 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) Elements.--The report under subsection (a) shall include the
    following:
                (1) A statement, using data consistent with budget data, of
            the actual costs and savings (to the extent available for prior
            fiscal years) and the estimated costs and savings (in the case
            of future fiscal years) attributable to the closure and
            realignment of military installations as a result of the base
            closure laws.
                (2) A comparison, set forth by base closure round, of the
            actual costs and savings stated under paragraph (1) to the
            estimates of costs and savings submitted to the Defense Base
            Closure and Realignment Commission as part of the base closure
            process.
                (3) A comparison, set forth by base closure round, of the
            actual costs and savings stated under paragraph (1) to the
            annual estimates of costs and savings previously submitted to
            Congress.
                (4) A list of each military installation at which there is
            authorized to be employed 300 or more civilian personnel, set
            forth by Armed Force.
                (5) An estimate of current excess capacity at military
            installations, set forth--
                        (A) as a percentage of the total capacity of the
                    military installations of the Armed Forces with respect
                    to all military installations of the Armed Forces;

    [[Page 111 STAT. 1999]]

                        (B) as a percentage of the total capacity of the
                    military installations of each Armed Force with respect
                    to the military installations of such Armed Force; and
                        (C) as a percentage of the total capacity of a type
                    of military installations with respect to military
                    installations of such type.
                (6) An assessment of the effect of the previous base closure
            rounds on military capabilities and the ability of the Armed
            Forces to fulfill the National Military Strategy.
                (7) A description of the types of military installations
            that would be recommended for closure or realignment in the
            event of one or more additional base closure rounds, set forth
            by Armed Force.
                (8) The criteria to be used by the Secretary in evaluating
            military installations for closure or realignment in such event.
                (9) The methodologies to be used by the Secretary in
            identifying military installations for closure or realignment in
            such event.
                (10) An estimate of the costs and savings that the Secretary
            believes will be achieved as a result of the closure or
            realignment of military installations in such event, set forth
            by Armed Force and by year.
                (11) An assessment of whether the costs and estimated
            savings from one or more future rounds of base closures and
            realignments, currently unauthorized, are already contained in
            the current Future Years Defense Plan, and, if not, whether the
            Secretary will recommend modifications in future defense
            spending in order to accommodate such costs and savings.

        (c) Method of Presenting Information.--The statement and comparison
    required by paragraphs (1) and (2) of subsection (b) shall be set forth
    by Armed Force, type of facility, and fiscal year, and include the
    following:
                (1) Operation and maintenance costs, including costs
            associated with expanded operations and support, maintenance of
            property, administrative support, and allowances for housing at
            military installations to which functions are transferred as a
            result of the closure or realignment of other installations.
                (2) Military construction costs, including costs associated
            with rehabilitating, expanding, and constructing facilities to
            receive personnel and equipment that are transferred to military
            installations as a result of the closure or realignment of other
            installations.
                (3) Environmental cleanup costs, including costs associated
            with assessments and restoration.
                (4) Economic assistance costs, including--
                        (A) expenditures on Department of Defense
                    demonstration projects relating to economic assistance;
                        (B) expenditures by the Office of Economic
                    Adjustment; and
                        (C) to the extent available, expenditures by the
                    Economic Development Administration, the Federal
                    Aviation Administration, and the Department of Labor
                    relating to economic assistance.
                (5) To the extent information is available, unemployment
            compensation costs, early retirement benefits (including
            benefits paid under section 5597 of title 5, United States
            Code), and worker retraining expenses under the Priority
            Placement

    [[Page 111 STAT. 2000]]

            Program, the Job Training Partnership Act, and any other
            federally funded job training program.
                (6) Costs associated with military health care.
                (7) Savings attributable to changes in military force
            structure.
                (8) Savings due to lower support costs with respect to
            military installations that are closed or realigned.

        (d) Deadline.--The Secretary shall submit the report under
    subsection (a) not later than the date on which the President submits to
    Congress the budget for fiscal year 2000 under section 1105(a) of title
    31, United States Code.
        (e) Review.--The Congressional Budget Office and the Comptroller
    General shall conduct a review of the report prepared under subsection
    (a).
        (f) Prohibition on Use of Funds.--Except as necessary to prepare the
    report required under subsection (a), no funds authorized to be
    appropriated or otherwise made available to the Department of Defense by
    this Act or any other Act may be used for the purposes of planning for,
    or collecting data in anticipation of, an authorization providing for
    procedures under which the closure and realignment of military
    installations may be accomplished, until the later of--
                (1) the date on which the Secretary submits the report
            required by subsection (a); and
                (2) the date on which the Congressional Budget Office and
            the Comptroller General complete a review of the report under
            subsection (e).

        (g) Sense of Congress.--It is the sense of the Congress that--
                (1) the Secretary should develop a system having the
            capacity to quantify the actual costs and savings attributable
            to the closure and realignment of military installations
            pursuant to the base closure process; and
                (2) the Secretary should develop the system in expedient
            fashion, so that the system may be used to quantify costs and
            savings attributable to the 1995 base closure round.

    SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS DERIVED FROM
                BASE CLOSURE PROCESS.

        (a) Findings.--The Senate makes the following findings:
                (1) Since 1988, the Department of Defense has conducted four
            rounds of closures and realignments of military installations in
            the United States, resulting in the closure of 97 installations.
                (2) The cost of carrying out the closure or realignment of
            installations covered by such rounds is estimated by the
            Secretary of Defense to be $23,000,000,000.
                (3) The savings expected as a result of the closure or
            realignment of such installations are estimated by the Secretary
            to be $10,300,000,000 through fiscal year 1996 and
            $36,600,000,000 through 2001.
                (4) In addition to such savings, the Secretary has estimated
            recurring savings as a result of the closure or realignment of
            such installations of approximately $5,600,000,000 annually.
                (5) The fiscal year 1997 budget request for the Department
            assumed a savings of between $2,000,000,000 and $3,000,000,000
            as a result of the closure or realignment of such installations,
            which savings were to be dedicated to the

    [[Page 111 STAT. 2001]]

            modernization of the Armed Forces. The savings assumed in the
            budget request were not realized.
                (6) The fiscal year 1998 budget request for the Department
            assumes a savings of $5,000,000,000 as a result of the closure
            or realignment of such installations, which savings are to be
            dedicated to the modernization of the Armed Forces.

        (b) Sense of Senate on Use of Savings Resulting From Base Closure
    Process.--It is the sense of the Senate that the savings identified in
    the report under section 2824 should be made available to the Department
    of Defense solely for purposes of the modernization of new weapon
    systems (including research, development, test, and evaluation relating
    to such modernization) and should be used by the Department solely for
    such purposes.

    SEC. 2826. PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL
                STATION, LONG BEACH, CALIFORNIA.

        (a) Prohibition Against Direct Conveyance.--In disposing of real
    property in connection with the closure of Naval Station, Long Beach,
    California, 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), the
    Secretary of the Navy may not convey any portion of the property (by
    sale, lease, or other method) to the China Ocean Shipping Company or any
    legal successor or subsidiary of that Company (in this section referred
    to as ``COSCO'').
        (b) Prohibition Against Indirect Conveyance.--The Secretary of the
    Navy shall impose as a condition on each conveyance of real property
    located at Naval Station, Long Beach, California, the requirement that
    the property may not be subsequently conveyed (by sale, lease, or other
    method) to COSCO.
        (c) Reversionary Interest.--If the Secretary of the Navy determines
    at any time that real property located at Naval Station, Long Beach,
    California, and conveyed under the Defense Base Closure and Realignment
    Act of 1990 has been conveyed to COSCO in violation of subsection (b) or
    is otherwise being used by COSCO in violation of such subsection, all
    right, title, and interest in and to the property shall revert to the
    United States, and the United States shall have immediate right of entry
    thereon.
        (d) National Security Report and Determination.--Not later than 30
    days after the date of the enactment of this Act, the Secretary of
    Defense and the Director of the Federal Bureau of Investigation shall
    separately submit to the President and the congressional defense
    committees a report regarding the potential national security
    implications of conveying property described in subsection (a) to COSCO.
    Each report shall specifically identify any increased risk of espionage,
    arms smuggling, or other illegal activities that could result from a
    conveyance to COSCO and recommend appropriate action to address any such
    risk.
        (e) Waiver Authority.--(1) The President may waive the prohibitions
    contained in this section with respect to a conveyance of property
    described in subsection (a) to COSCO if the President determines that--
                (A) appropriate action has been taken to address any
            increased national security risk identified in the reports
            required by subsection (d); and

    [[Page 111 STAT. 2002]]

                (B) the conveyance would not adversely affect national
            security or significantly increase the counter-intelligence
            burden on the intelligence community.

        (2) Any waiver <<NOTE: President. Notification.>>  under paragraph
    (1) shall take effect 30 days after the date on which the President
    notifies the Speaker of the House of Representatives and the President
    of the Senate of the President's determination to use the waiver
    authority provided under this subsection.

                          Subtitle D--Land Conveyances

                            PART I--ARMY CONVEYANCES

    SEC. 2831. LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, ALABAMA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Hale County, Alabama, all right, title, and
    interest of the United States in and to a parcel of real property
    consisting of approximately 5.17 acres and located at the Army Reserve
    Center, Greensboro, Alabama, that was conveyed by Hale County, Alabama,
    to the United States by warranty deed dated September 12, 1988.
        (b) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a) shall be
    as described in the deed referred to in that subsection.
        (c) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2832. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE
                CENTER, DURANT, OKLAHOMA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Big Five Community Services, Incorporated, a
    nonprofit organization operating in Durant, Oklahoma, all right, title,
    and interest of the United States in and to a parcel of real property
    located at 1500 North First Street in Durant, Oklahoma, and containing
    the James T. Coker Army Reserve Center, if the Secretary determines that
    the Reserve Center is excess to the needs of the Armed Forces.
        (b) Condition of Conveyance.--The conveyance authorized under
    subsection (a) shall be subject to the condition that Big Five Community
    Services, Incorporated, retain the conveyed property for educational
    purposes.
        (c) Reversion.--If the Secretary determines at any time that the
    real property conveyed under subsection (a) is not being used for the
    purpose specified in subsection (b), all right, title, and interest in
    and to the real property, including any improvements thereon, shall
    revert to the United States, and the United States shall have the right
    of immediate entry thereon.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by Big Five Community Services,
    Incorporated.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with

    [[Page 111 STAT. 2003]]

    the conveyance under subsection (a) as the Secretary considers
    appropriate to protect the interests of the United States.

    SEC. 2833. LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER,
                CHICAGO, ILLINOIS.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to the Lawndale Business and Local Development
    Corporation (in this section referred to as the ``Corporation''), a
    nonprofit organization organized in the State of Illinois, all right,
    title, and interest of the United States in and to a parcel of real
    property, including improvements thereon, that is located at 4454 West
    Cermak Road in Chicago, Illinois, and contains the Gibson Army Reserve
    Center.
        (b) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the Corporation--
                (1) use the conveyed property, directly or through an
            agreement with a public or private entity, for economic
            redevelopment purposes; or
                (2) convey the property to an appropriate public or private
            entity for use for such purposes.

        (c) Reversion.--If the Secretary determines at any time that the
    real property conveyed under subsection (a) is not being used for
    economic redevelopment purposes, as required by subsection (b), 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.
        (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 Corporation.
        (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.

    SEC. 2834. LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    Caroline County, Virginia (in this section referred to as the
    ``County''), all right, title, and interest of the United States in and
    to a parcel of unimproved real property consisting of approximately 10
    acres located at Fort A. P. Hill, Virginia. The purpose of the
    conveyance is to permit the County to establish a solid waste transfer
    and recycling facility on the property.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the County shall permit the Army, at no cost to the
    Army, to dispose of not less than 1,800 tons of solid waste annually at
    the facility established on the conveyed property. The obligation of the
    County to accept solid waste under this subsection shall not commence
    until after the solid waste transfer and recycling facility on the
    conveyed property becomes operational, and the establishment of a solid
    waste collection and transfer site on the .36-acre parcel described in
    subsection (d)(2) shall not be construed to impose the obligation.
        (c) Disclaimer.--The United States shall not be responsible for the
    provision or cost of utilities or any other improvements necessary to
    carry out the conveyance under subsection (a) or to

    [[Page 111 STAT. 2004]]

    establish or operate the solid waste transfer and recycling facility
    intended for the property.
        (d) Reversion.--(1) Except as provided in paragraph (2), if the
    Secretary determines that a solid waste transfer and recycling facility
    is not operational, before December 31, 1999, on the real property
    conveyed under subsection (a), all right, title, and interest in and to
    such real property, including any improvements thereon, shall revert to
    the United States, and the United States shall have the right of
    immediate entry thereon.
        (2) Paragraph (1) shall not apply with respect to a parcel of
    approximately .36 acres of the approximately 10-acre parcel to be
    conveyed under subsection (a), which is included in the larger
    conveyance to permit the County to establish a solid waste collection
    and transfer site for residential waste.
        (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.

    SEC. 2835. LAND CONVEYANCES, FORT DIX, NEW JERSEY.

        (a) Conveyances Authorized.--(1) The Secretary of the Army may
    convey, without consideration, to the Borough of Wrightstown, New Jersey
    (in this section referred to as the ``Borough''), all right, title, and
    interest of the United States in and to a parcel of real property
    (including improvements thereon) consisting of approximately 39.69 acres
    located at Fort Dix, New Jersey, for the purpose of permitting the
    Borough to develop the parcel for economic purposes.
        (2) The Secretary may convey, without consideration, to the New
    Hanover Board of Education (in this section referred to as the
    ``Board''), all right, title, and interest of the United States in and
    to an additional parcel of real property (including improvements
    thereon) at Fort Dix consisting of approximately five acres for the
    purpose of permitting the Board to develop the parcel for educational
    purposes.
        (b) Conditions of Conveyance.--(1) The conveyance under subsection
    (a)(1) shall be subject to the condition that the Borough--
                (A) use the conveyed property, directly or through an
            agreement with a public or private entity, for economic
            development purposes; or
                (B) convey the property to an appropriate public or private
            entity for use for such purposes.

        (2) The conveyance under subsection (a)(2) shall be subject to the
    condition that the Board develop and use the conveyed property for
    educational purposes.
        (c) Reversion.--(1) If the Secretary determines at any time that the
    real property conveyed under subsection (a)(1) is not being used for
    economic development purposes, as required by subsection (b)(1), all
    right, title, and interest in and to the property conveyed under
    subsection (a)(1), including any improvements thereon, shall revert to
    the United States, and the United States shall have the right of
    immediate entry thereon.
        (2) If the Secretary determines at any time that the real property
    conveyed under subsection (a)(2) is not being used for educational
    purposes, as required by subsection (b)(2), all right, title, and
    interest in and to the property conveyed under subsection (a)(2),
    including any improvements thereon, shall revert to the

    [[Page 111 STAT. 2005]]

    United States, and the United States shall have the right of immediate
    entry thereon.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by surveys satisfactory to the Secretary. The cost
    of the survey in connection with the conveyance under subsection (a)(1)
    shall be borne by the Borough, and the cost of the survey in connection
    with the conveyance under subsection (a)(2) shall be borne by the Board.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2836. LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.

        (a) Conveyances Authorized.--(1) The Secretary of the Army may
    convey, without consideration, to the Town of Spring Lake, North
    Carolina (in this section referred to as the ``Town''), all right,
    title, and interest of the United States in and to a parcel of
    unimproved real property consisting of approximately 50 acres located at
    Fort Bragg, North Carolina.
        (2) The Secretary may convey, without consideration, to Harnett
    County, North Carolina (in this section referred to as the ``County''),
    all right, title, and interest of the United States in and to a parcel
    of real property (including improvements thereon), known as Tract No.
    404-2, consisting of approximately 157 acres located at Fort Bragg.
        (3) The Secretary may convey, at fair market value, to the County
    all right, title, and interest of the United States in and to a parcel
    of real property (including improvements thereon), known as Tract No.
    404-1, consisting of approximately 137 acres located at Fort Bragg.
        (b) Conditions of Conveyance.--(1) The conveyance under subsection
    (a)(1) shall be subject to the condition that the Town use the conveyed
    property for access to a waste treatment facility and for economic
    development purposes.
        (2) The conveyance under subsection (a)(2) shall be subject to the
    condition that the County develop and use the conveyed property for
    educational purposes.
        (c) Reversion.--(1) If the Secretary determines at any time that the
    real property conveyed under subsection (a)(1) is not being used in
    accordance with subsection (b)(1), all right, title, and interest in and
    to the property conveyed under subsection (a)(1), including any
    improvements thereon, shall revert to the United States, and the United
    States shall have the right of immediate entry thereon.
        (2) If the Secretary determines at any time that the real property
    conveyed under subsection (a)(2) is not being used in accordance with
    subsection (b)(2), all right, title, and interest in and to the property
    conveyed under subsection (a)(2), including any improvements thereon,
    shall revert to the United States, and the United States shall have the
    right of immediate entry thereon.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by surveys satisfactory to the Secretary. The cost
    of the survey in connection with the conveyance under subsection (a)(1)
    shall be borne by the Town, and the cost of the

    [[Page 111 STAT. 2006]]

    survey in connection with the conveyances under paragraphs (2) and (3)
    of subsection (a) shall be borne by the County.
        (e) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyances under
    subsection (a) as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2837. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, MINERAL
                COUNTY, NEVADA.

        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Mineral County, Nevada (in this section
    referred to as the ``County''), all right, title, and interest of the
    United States in and to a parcel of excess real property, including
    improvements thereon, consisting of approximately 33.1 acres located at
    Hawthorne Army Ammunition Depot, Mineral County, Nevada, and commonly
    referred to as the Schweer Drive Housing Area, for the purpose of
    permitting the County to develop the parcel for economic purposes.
        (b) Conditions of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the following conditions:
                (1) That the County accept the conveyed property subject to
            such easements and rights of way in favor of the United States
            as the Secretary considers appropriate.
                (2) That the County, if the County sells any portion of the
            property conveyed under subsection (a) before the end of the 10-
            year period beginning on the date of enactment of
            this Act, pay to the United States an amount equal to the lesser
            of--
                        (A) the amount of sale of the property sold; or
                        (B) the fair market value of the property sold as
                    determined without taking into account any improvements
                    to such property by the County.

        (c) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a),
    and of any easement or right of way granted under subsection (b)(1),
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the County.
        (d) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a), and any easement or right of way granted under
    subsection (b)(1), as the Secretary considers appropriate to protect the
    interests of the United States.

    SEC. 2838. EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA ARMY
                AMMUNITION PLANT, CHARLESTOWN, INDIANA.

        (a) Additional Conveyance.--Subsection (a) of section 2858 of the
    National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
    106; 110 Stat. 571) is amended--
                (1) by inserting ``(1)'' before ``The Secretary of the
            Army''; and
                (2) by adding at the end the following new paragraph:

        ``(2) The Secretary may also convey to the State, without
    consideration, an additional parcel of real property at the Indiana Army
    Ammunition Plant consisting of approximately 500 acres located along the
    Ohio River.''.
        (b) Conforming Amendments.--Such section is further
    amended by striking out ``conveyance'' both places it appears in
    subsections (b) and (d) and inserting in lieu thereof ``conveyances''.

    [[Page 111 STAT. 2007]]

    SEC. 2839. MODIFICATION OF LAND CONVEYANCE, LOMPOC,
                CALIFORNIA.

        (a) Change in Authorized Uses of Land.--Section 834(b)(1) of the
    Military Construction Authorization Act, 1985 (Public Law 98-407; 98
    Stat. 1526), is amended by striking out subparagraphs (A) and (B) and
    inserting in lieu thereof the following new subparagraphs:
                ``(A) for educational and recreational purposes;
                ``(B) for open space; or''.

        (b) Conforming Deed Changes.--With respect to the land conveyance
    made pursuant to section 834 of the Military Construction Authorization
    Act, 1985, the Secretary of the Army shall execute and file in the
    appropriate office or offices an amended deed or other appropriate
    instrument effectuating the changes to the authorized uses of the
    conveyed property resulting from the amendment made by subsection (a).

    SEC. 2840. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN ARSENAL,
                COLORADO.

        Section 5(c)(1) of Public Law 102-402 (106 Stat. 1966; 16 U.S.C.
    668dd note) is amended by striking out the second sentence and inserting
    in lieu thereof the following new sentence: ``The Administrator shall
    convey the transferred property to Commerce City, Colorado, for
    consideration in an amount equal to the fair market value of the
    property (as determined jointly by the Administrator and the City).''.

    SEC. 2841. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE CENTER,
                ANDERSON, SOUTH CAROLINA.

        (a) Correction of Conveyee.--Subsection (a) of section 2824 of the
    Military Construction Authorization Act for Fiscal Year 1997 (division B
    of Public Law 104-201; 110 Stat. 2793) is amended by striking out
    ``County of Anderson, South Carolina (in this section referred to as the
    `County')'' and inserting in lieu thereof ``Board of Education, Anderson
    County, South Carolina (in this section referred to as the `Board')''.
        (b) Conforming Amendments.--Subsections (b) and (c) of such section
    are each amended by striking out ``the County'' and inserting in lieu
    thereof ``the Board''.

                            PART II--NAVY CONVEYANCES

    SEC. 2851. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION, BRUNSWICK,
                MAINE.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey,
    without consideration, to the Maine School Administrative District No.
    75, Topsham, Maine (in this section referred to as the ``District''),
    all right, title, and interest of the United States in and to a parcel
    of real property, including improvements thereon, consisting of
    approximately 40 acres located at the Topsham Annex, Naval Air Station,
    Brunswick, Maine.
        (b) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the District use the conveyed
    property for educational purposes.
        (c) Reversion.--If the Secretary determines at any time that the
    real property conveyed under subsection (a) is not being used for the
    purpose specified in subsection (b), all right, title, and

    [[Page 111 STAT. 2008]]

    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 thereon.
        (d) Interim Lease.--(1) Until such time as the real property
    described in subsection (a) is conveyed by deed, the Secretary may lease
    the property, together with the improvements thereon, to the District.
        (2) As consideration for the lease under this subsection, the
    District shall provide such security services for the property covered
    by the lease, and carry out such maintenance work with respect to the
    property, as the Secretary shall specify in the lease.
        (e) 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 District.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a), and the lease, if any, under subsection (d), as the
    Secretary considers appropriate to protect the interests of the United
    States.

    SEC. 2852. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT NO.
                464, OYSTER BAY, NEW YORK.

        (a) Conveyance Authorized.--(1) The Secretary of the Navy may
    convey, without consideration, to the County of Nassau, New York (in
    this section referred to as the ``County''), all right, title, and
    interest of the United States in and to parcels of real property
    consisting of approximately 110 acres and comprising the Naval Weapons
    Industrial Reserve Plant No. 464, Oyster Bay, New York.
        (2)(A) As part of the conveyance authorized in paragraph (1), the
    Secretary may convey to the County such improvements, equipment,
    fixtures, and other personal property (including special tooling
    equipment and special test equipment) located on the parcels as the
    Secretary determines to be not required by the Navy for other purposes.
        (B) The Secretary may permit the County to review and inspect the
    improvements, equipment, fixtures, and other personal property located
    on the parcels for purposes of the conveyance authorized by this
    paragraph.
        (b) Condition of Conveyance.--The conveyance of the parcels
    authorized in subsection (a) shall be subject to the condition that the
    County--
                (1) use the parcels, directly or through an agreement with a
            public or private entity, for economic redevelopment purposes or
            such other public purposes as the County determines appropriate;
            or
                (2) convey the parcels to an appropriate public or private
            entity for use for such purposes.

        (c) Reversion.--If, during the five-year period beginning on the
    date the Secretary makes the conveyance authorized under subsection (a),
    the Secretary determines that the conveyed real property is not being
    used for a purpose specified in subsection (b), 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.

    [[Page 111 STAT. 2009]]

        (d) Interim Lease.--(1) Until such time as the real property
    described in subsection (a) is conveyed by deed, the Secretary may lease
    the property, together with improvements thereon, to the County.
        (2) As consideration for the lease under this subsection, the County
    shall provide such security services and fire protection services for
    the property covered by the lease, and carry out such maintenance work
    with respect to the property, as the Secretary shall specify in the
    lease.
        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the County.
        (f) Additional Terms and Conditions.--The Secretary may require such
    additional terms and conditions in connection with the conveyance under
    subsection (a), and the lease, if any, under subsection (d), as the
    Secretary considers appropriate to protect the interests of the United
    States.

    SEC. 2853. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, MERIDIAN,
                MISSISSIPPI.

        (a) Correction of Lessee.--Subsection (a) of section 2837 of the
    Military Construction Authorization Act for Fiscal Year 1997 (division B
    of Public Law 104-201; 110 Stat. 2798) is amended--
                (1) by striking out ``State of Mississippi (in this section
            referred to as the `State')'' and inserting in lieu thereof
            ``County of Lauderdale, Mississippi (in this section referred to
            as the `County')''; and
                (2) by striking out ``The State'' and inserting in lieu
            thereof ``The County''.

        (b) Conforming Amendments.--Subsections (b) and (c) of such section
    are amended by striking out ``State'' each place it appears and
    inserting in lieu thereof ``County''.

                         PART III--AIR FORCE CONVEYANCES

    SEC. 2861. LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.

        (a) Transfer.--The real property withdrawn by Executive Order 4525,
    dated October 1, 1826, which consists of approximately 440 acres of land
    at Cape San Blas, Gulf County, Florida, and any improvements thereon, is
    transferred from the administrative jurisdiction of the Secretary of
    Transportation to the administrative jurisdiction of the Secretary of
    the Air Force, without reimbursement. Executive Order 4525 is revoked,
    and the transferred real property shall be administered by the Secretary
    of the Air Force pursuant to the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 471 et seq.) and such other laws as may
    be applicable to Federal real property.
        (b) Use of Property.--The real property transferred under subsection
    (a) may be used in conjunction with operations at Eglin Air Force Base,
    Florida.
        (c) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under subsection (a) shall be
    determined by a survey satisfactory to the Secretary of the Air Force.
    The cost of the survey shall be borne by the Secretary of the Air Force.

    [[Page 111 STAT. 2010]]

    SEC. 2862. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

        (a) Conveyance Authorized.--(1) The Secretary of the Air Force may
    convey to Air Force Village West, Incorporated (in this section referred
    to as the ``Corporation''), of Riverside, California, all right, title,
    and interest of the United States in and to a parcel of real property
    located at March Air Force Base, California, and consisting of
    approximately 75 acres, as more fully described in subsection (c).
        (2) If the Secretary does not make the conveyance authorized by
    paragraph (1) to the Corporation on or before January 1, 2006, the
    Secretary shall convey the real property instead to the March Joint
    Powers Authority, the redevelopment authority established for March Air
    Force Base.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a)(1), the Corporation shall pay to the United States an
    amount equal to the fair market value of the real property, as
    determined by the Secretary.
        (c) Land Description.--The real property to be conveyed under
    subsection (a) is contiguous to land conveyed to the Corporation
    pursuant to section 835 of the Military Construction Authorization Act,
    1985 (Public Law 98-407; 98 Stat. 1527), and lies within sections 27,
    28, 33, and 34 of Township 3 South, Range 4 West, San Bernardino Base
    and Meridian, County of Riverside, California. The exact acreage and
    legal description of the real property shall be determined by a survey
    satisfactory to the Secretary. The cost of the survey shall be borne by
    the party receiving the property.
        (d) Technical Corrections Regarding Previous Conveyance.--Section
    835 of the Military Construction Authorization Act, 1985 (Public Law 98-
    407; 98 Stat. 1527), is amended--
                (1) in subsection (b), by striking out ``subsection (b)''
            and inserting in lieu thereof ``subsection (a)''; and
                (2) in subsection (c), by striking out ``Clark Street,'' and
            all that follows through the period and inserting in lieu
            thereof ``Village West Drive, on the west by Allen Avenue, on
            the south by 8th Street, and the north is an extension of 11th
            Street between Allen Avenue and Clark Street.''.

    SEC. 2863. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the Greater Box Elder Area Economic
    Development Corporation, Box Elder, South Dakota (in this section
    referred to as the ``Corporation''), all right, title, and interest of
    the United States in and to the parcels of real property located at
    Ellsworth Air Force Base, South Dakota, referred to in subsection (b).
        (b) Covered Property.--(1) Subject to paragraph (2), the real
    property referred to in subsection (a) is the following:
                (A) A parcel of real property, together with any
            improvements thereon, consisting of approximately 53.32 acres
            and comprising the Skyway Military Family Housing Area.
                (B) A parcel of real property, together with any
            improvements thereon, consisting of approximately 137.56 acres
            and comprising the Renal Heights Military Family Housing Area.
                (C) A parcel of real property, together with any
            improvements thereon, consisting of approximately 14.92 acres
            and comprising the East Nike Military Family Housing Area.

    [[Page 111 STAT. 2011]]

                (D) A parcel of real property, together with any
            improvements thereon, consisting of approximately 14.69 acres
            and comprising the South Nike Military Family Housing Area.
                (E) A parcel of real property, together with any
            improvements thereon, consisting of approximately 14.85 acres
            and comprising the West Nike Military Family Housing Area.

        (2) The real property referred to in subsection (a) does not include
    the portion of real property referred to in paragraph (1)(B) that the
    Secretary determines to be required for the construction of an access
    road between the main gate of Ellsworth Air Force Base and an
    interchange on Interstate Route 90 located in the vicinity of mile
    marker 67 in South Dakota.
        (c) Conditions of Conveyance.--The conveyance of the real property
    referred to in subsection (b) shall be subject to the following
    conditions:
                (1) That the Corporation, and any person or entity to which
            the Corporation transfers the property, comply in the use of the
            property with the applicable provisions of the Ellsworth Air
            Force Base Air Installation Compatible Use Zone Study.
                (2) That the Corporation convey a portion of the real
            property referred to in subsection (b)(1)(A), together with any
            improvements thereon, consisting of approximately 20 acres to
            the Douglas School District, South Dakota, for use for education
            purposes.

        (d) Reversion.--If the Secretary determines that any portion of the
    real property conveyed under subsection (a) is not being used in
    accordance with the applicable provision of subsection (c), all right,
    title, and interest in and to that portion of the real property,
    including any improvements thereon, shall revert to the United States,
    and the United States shall have the right of immediate entry thereon.
        (e) Legal Description.--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 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. 2864. LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW YORK.

        (a) Conveyance Authorized.--(1) The Secretary of the Air Force may
    convey, without consideration, to Onondaga County, New York (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 any
    improvements thereon, consisting of approximately 14.9 acres and located
    at Hancock Field, Syracuse, New York, the site of facilities no longer
    required for use by the 152nd Air Control Group of the New York Air
    National Guard.
        (2) If, at the time of the conveyance authorized by paragraph (1),
    the property to be conveyed is under the jurisdiction of the
    Administrator of General Services rather than the Secretary, the
    Administrator shall make the conveyance.

    [[Page 111 STAT. 2012]]

        (b) Condition of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the condition that the County use the
    property conveyed for economic development purposes.
        (c) Reversion.--If the Secretary (or the Administrator in the event
    the conveyance is made by the Administrator) determines at any time that
    the property conveyed pursuant to this section is not being used for the
    purposes specified in subsection (b), 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 thereon.
        (d) 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 (or the
    Administrator in the event the conveyance is made by the Administrator).
    The cost of the survey shall be borne by the County.
        (e) Additional Terms and Conditions.--The Secretary (or the
    Administrator in the event the conveyance is made by the Administrator)
    may require such additional terms and conditions in connection with the
    conveyance under subsection (a) as the Secretary or the Administrator,
    as the case may be, considers appropriate to protect the interests of
    the United States.

    SEC. 2865. LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, AND HAVRE
                TRAINING SITE, MONTANA.

        (a) Conveyance Authorized.--(1) The Secretary of the Air Force may
    convey, without consideration, to the Bear Paw Development Corporation,
    Havre, Montana (in this section referred to as the ``Corporation''),
    all, right, title, and interest of the United States in and to the real
    property described in paragraph (2).
        (2) The authority in paragraph (1) applies to the following real
    property:
                (A) A parcel of real property, including any improvements
            thereon, consisting of approximately 85 acres and comprising the
            Havre Air Force Station, Montana.
                (B) A parcel of real property, including any improvements
            thereon, consisting of approximately 9 acres and comprising the
            Havre Training Site, Montana.

        (b) Conditions of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the following conditions:
                (1) That the Corporation--
                        (A) convey to the Box Elder School District 13G,
                    Montana, 10 single-family homes located on the property
                    to be conveyed under that subsection as jointly agreed
                    upon by the Corporation and the school district; and
                        (B) grant the school district access to the property
                    for purposes of removing the homes from the property.
                (2) That the Corporation--
                        (A) convey to the Hays/Lodgepole School District 50,
                    Montana--
                              (i) 27 single-family homes located on the
                          property to be conveyed under that subsection as
                          jointly agreed upon by the Corporation and the
                          school district;
                              (ii) one barracks housing unit located on the
                          property;
                              (iii) two steel buildings (nos. 7 and 8)
                          located on the property;

    [[Page 111 STAT. 2013]]

                              (iv) two tin buildings (nos. 37 and 44)
                          located on the property; and
                              (v) miscellaneous personal property located on
                          the property that is associated with the buildings
                          conveyed under this subparagraph; and
                        (B) grant the school district access to the property
                    for purposes of removing such homes and buildings, the
                    housing unit, and such personal property from the
                    property.
                (3) That the Corporation--
                        (A) convey to the District 4 Human Resources
                    Development Council, Montana, eight single-family homes
                    located on the property to be conveyed under that
                    subsection as jointly agreed upon by the Corporation and
                    the council; and
                        (B) grant the council access to the property for
                    purposes of removing such homes from the property.
                (4) That any property conveyed under subsection (a) that is
            not conveyed under this subsection be used for economic
            development purposes or housing purposes.

        (c) Reversion.--If the Secretary determines at any time that the
    portion of the property conveyed under subsection (a) which is covered
    by the condition specified in subsection (b)(4) is not being used for
    the purposes specified in that subsection, all right, title, and
    interest in and to such property, including any improvements thereon,
    shall revert to the United States, and the United States shall have the
    right of immediate entry thereon.
        (d) Description of Property.--The exact acreages and legal
    description of the parcels of property to be conveyed under subsection
    (a) shall be determined by surveys satisfactory to the Secretary. The
    cost of the surveys shall be borne by the Corporation.
        (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.

    SEC. 2866. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING
                COMPLEX, BANGOR, MAINE.

        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the City of Bangor, Maine (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 consisting of
    approximately 19.8 acres, including improvements thereon, located in
    Bangor, Maine, and known as the Charleston Family Housing Complex.
        (b) Purpose of Conveyance.--The purpose of the conveyance under
    subsection (a) is to facilitate the reuse of the real property,
    currently unoccupied, which the City proposes to use to provide housing
    opportunities for first-time home buyers.
        (c) Condition of Conveyance.--The conveyance authorized by
    subsection (a) shall be subject to the condition that the City, if the
    City sells any portion of the property conveyed under subsection (a)
    before the end of the 10-year period beginning on the date of enactment
    of this Act, pay to the United States an amount equal to the lesser of--
                (1) the amount of sale of the property sold; or

    [[Page 111 STAT. 2014]]

                (2) the fair market value of the property sold as determined
            without taking into account any improvements to such property by
            the City.

        (d) Description of Property.--The exact acreage and legal
    description of the real property 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) 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. 2867. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE BASE, SOUTH
                CAROLINA.

        Section 2874 of the Military Construction Authorization Act for
    Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 583) is
    amended by adding at the end the following new subsection:
        ``(g) Study of Exchange Options.--To facilitate the use of a land
    exchange to acquire the real property described in subsection (a), the
    Secretary shall conduct a study to identify real property in the
    possession of the Air Force (located in the State of South Carolina or
    elsewhere) that satisfies the requirements of subsection (b)(2), is
    acceptable to the party holding the property to be acquired, and is
    otherwise <<NOTE: Reports.>>  suitable for exchange under this section.
    Not later than three months after the date of the enactment of the
    National Defense Authorization Act for Fiscal Year 1998, the Secretary
    shall submit to Congress a report containing the results of the
    study.''.

                            Subtitle E--Other Matters

    SEC. 2871. REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.

        (a) Operation.--(1) Chapter 603 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 6976. Operation of Naval Academy dairy farm

        ``(a) Discretion Regarding Continued Operation.--(1) Subject to
    paragraph (2), the Secretary of the Navy may terminate or reduce the
    dairy or other operations conducted at the Naval Academy dairy farm
    located in Gambrills, Maryland.
        ``(2) Notwithstanding the termination or reduction of operations at
    the Naval Academy dairy farm under paragraph (1), the real property
    containing the dairy farm (consisting of approximately 875 acres)--
                ``(A) may not be declared to be excess real property to the
            needs of the Navy or transferred or otherwise disposed of by the
            Navy or any Federal agency; and
                ``(B) shall be maintained in its rural and agricultural
            nature.

        ``(b) Lease Authority.--(1) Subject to paragraph (2), to the extent
    that the termination or reduction of operations at the Naval Academy
    dairy farm permit, the Secretary of the Navy may lease the real property
    containing the dairy farm, and any improvements and personal property
    thereon, to such persons and under such terms as the Secretary considers
    appropriate. In leasing any of

    [[Page 111 STAT. 2015]]

    the property, the Secretary may give a preference to persons who will
    continue dairy operations on the property.
        ``(2) Any lease of property at the Naval Academy dairy farm shall be
    subject to a condition that the lessee maintain the rural and
    agricultural nature of the leased property.
        ``(c) Effect of Other Laws.--Nothing in section 6971 of this title
    shall be construed to require the Secretary of the Navy or the
    Superintendent of the Naval Academy to operate a dairy farm for the
    Naval Academy in Gambrills, Maryland, or any other location.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``6976. Operation of Naval Academy dairy farm.''.

        (b) Conforming Repeal of Existing Requirements.--Section 810 of the
    Military Construction Authorization Act, 1968 (Public Law 90-110; 81
    Stat. 309), is repealed.
        (c) Other Conforming Amendments.--(1) Section 6971(b)(5) of title
    10, United States Code, is amended by inserting ``(if any)'' before the
    period at the end.
        (2) Section 2105(b) of title 5, United States Code, is amended by
    inserting ``(if any)'' after ``Academy dairy''.

    SEC. 2872. LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.

        (a) Authority.--Subject to subsection (d), the Secretary of the Navy
    may acquire by long-term lease structures and real property relating to
    a regional hospital complex in Naples, Italy, that the Secretary
    determines to be necessary for purposes of the Naples Improvement
    Initiative.
        (b) Lease Term.--Notwithstanding section 2675 of title 10, United
    States Code, the lease authorized by subsection (a) shall be for a term
    of not more than 20 years.
        (c) Expiration of Authority.--The authority of the Secretary to
    enter into a lease under subsection (a) shall expire on September 30,
    2002.
        (d) Authority Contingent on Appropriations Acts.--The authority of
    the Secretary to enter into a lease under subsection (a) is available
    only to the extent or in the amount provided in advance in
    appropriations Acts.

    SEC. 2873. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND AIR FORCE
                BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER MEMBER OF
                THE HOUSE OF REPRESENTATIVES.

        The military family housing developments to be constructed at two
    locations on Government property at Lackland Air Force Base, Texas,
    under the authority of subchapter IV of chapter 169 of title 10, United
    States Code, shall be designated by the Secretary of the Air Force, at
    an appropriate time, as follows:
                (1) The eastern development shall be designated as ``Frank
            Tejeda Estates East''.
                (2) The western development shall be designated as ``Frank
            Tejeda Estates West''.

    SEC. 2874. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY
                INSTALLATIONS.

        (a) Installation Required.--In at least one metropolitan area of the
    United States containing multiple military installations of

    [[Page 111 STAT. 2016]]

    one or more military departments or Defense Agencies, the Secretary of
    Defense shall provide for the installation of fiber-optics based
    telecommunications technology to link as many of the installations in
    the area as practicable in a telecommunications network. The Secretary
    shall use a full and open competitive process, consistent with section
    2304 of title 10, United States Code, to provide for the installation of
    the telecommunications network through one or more new contracts.
        (b) Features of Network.--The telecommunications network shall
    provide direct access to local and long distance telephone carriers,
    allow for transmission of both classified and unclassified information,
    and take advantage of the various capabilities of fiber-optics based
    telecommunications technology.
        (c) Time for Request for Bids or Proposals.--Not later than March
    30, 1998, the Secretary of Defense shall release a final request for
    bids or proposals to provide the telecommunications network or networks
    described in subsection (a).
        (d) Report on Implementation.--Not later than December 31, 1998, the
    Secretary of Defense shall submit to the congressional defense
    committees a report on the implementation of subsection (c), including
    the metropolitan area or areas selected for the installation of a fiber-
    optics based telecommunications network, the current telecommunication
    costs for the Department of Defense in the selected area or areas, the
    estimated cost of the fiber-optics based network, and potential areas
    for the future use of fiber-optics based networks.

         TITLE XXIX <<NOTE: Sikes Act Improvement Act of 1997. Natural
    resources. Fish and wildlife.>> --SIKES ACT IMPROVEMENT

    Sec. 2901. Short title.
    Sec. 2902. Definition of Sikes Act for purposes of amendments.
    Sec. 2903. Codification of short title of Act.
    Sec. 2904. Preparation of integrated natural resources management plans.
    Sec. 2905. Review for preparation of integrated natural resources
               management plans.
    Sec. 2906. Transfer of wildlife conservation fees from closed military
               installations.
    Sec. 2907. Annual reviews and reports.
    Sec. 2908. Cooperative agreements.
    Sec. 2909. Federal enforcement.
    Sec. 2910. Natural resources management services.
    Sec. 2911. Definitions.
    Sec. 2912. Repeal of superseded provision.
    Sec. 2913. Technical amendments.
    Sec. 2914. Authorizations of appropriations.

    SEC. 2901. <<NOTE: 16 USC 670 note.>>  SHORT TITLE.

        This title may be cited as the ``Sikes Act Improvement Act of
    1997''.

    SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.

        In this title, the term ``Sikes Act'' means the Act entitled ``An
    Act to promote effectual planning, development, maintenance, and
    coordination of wildlife, fish, and game conservation and rehabilitation
    in military reservations'', approved September 15, 1960 (16 U.S.C. 670a
    et seq.), commonly referred to as the ``Sikes Act''.

    SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.

        The Sikes Act (16 U.S.C. 670a et seq.) is amended by inserting
    before title I the following new section:

    [[Page 111 STAT. 2017]]

    ``SECTION 1. SHORT TITLE.

        ``This Act may be cited as the `Sikes Act'.''.

    SEC. 2904. PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT PLANS.

        (a) In General.--Section 101 of the Sikes Act (16 U.S.C. 670a(a)) is
    amended by striking out subsection (a) and inserting in lieu thereof the
    following new subsection:
        ``(a) Authority of Secretary of Defense.--
                ``(1) Program.--
                        ``(A) In general.--The Secretary of Defense shall
                    carry out a program to provide for the conservation and
                    rehabilitation of natural resources on military
                    installations.
                        ``(B) Integrated natural resources management
                    plan.--To facilitate the program, the Secretary of each
                    military department shall prepare and implement an
                    integrated natural resources management plan for each
                    military installation in the United States under the
                    jurisdiction of the Secretary, unless the Secretary
                    determines that the absence of significant natural
                    resources on a particular installation makes preparation
                    of such a plan inappropriate.
                ``(2) Cooperative preparation.--The Secretary of a military
            department shall prepare each integrated natural resources
            management plan for which the Secretary is responsible in
            cooperation with the Secretary of the Interior, acting through
            the Director of the United States Fish and Wildlife Service, and
            the head of each appropriate State fish and wildlife agency for
            the State in which the military installation concerned is
            located. Consistent with paragraph (4), the resulting plan for
            the military installation shall reflect the mutual agreement of
            the parties concerning conservation, protection, and management
            of fish and wildlife resources.
                ``(3) Purposes of program.--Consistent with the use of
            military installations to ensure the preparedness of the Armed
            Forces, the Secretaries of the military departments shall carry
            out the program required by this subsection to provide for--
                        ``(A) the conservation and rehabilitation of natural
                    resources on military installations;
                        ``(B) the sustainable multipurpose use of the
                    resources, which shall include hunting, fishing,
                    trapping, and nonconsumptive uses; and
                        ``(C) subject to safety requirements and military
                    security, public access to military installations to
                    facilitate the use.
                ``(4) Effect on other law.--Nothing in this title--
                        ``(A)(i) affects any provision of a Federal law
                    governing the conservation or protection of fish and
                    wildlife resources; or
                        ``(ii) enlarges or diminishes the responsibility and
                    authority of any State for the protection and management
                    of fish and resident wildlife; or
                        ``(B) except as specifically provided in the other
                    provisions of this section and in section 102,
                    authorizes the Secretary of a military department to
                    require a Federal license or permit to hunt, fish, or
                    trap on a military installation.''.

    [[Page 111 STAT. 2018]]

        (b) Conforming Amendments.--Title I of the Sikes Act is amended--
                (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by striking
            out ``cooperative plan'' each place it appears and inserting in
            lieu thereof ``integrated natural resources management plan'';
                (2) in section 101(c) (16 U.S.C. 670a(c)), in the matter
            preceding paragraph (1), by striking out ``a cooperative plan''
            and inserting in lieu thereof ``an integrated natural resources
            management plan'';
                (3) in section 101(d) (16 U.S.C. 670a(d)), in the matter
            preceding paragraph (1), by striking out ``cooperative plans''
            and inserting in lieu thereof ``integrated natural resources
            management plans'';
                (4) in section 101(e) (16 U.S.C. 670a(e)), by striking out
            ``Cooperative plans'' and inserting in lieu thereof ``Integrated
            natural resources management plans'';
                (5) in section 102 (16 U.S.C. 670b), by striking out ``a
            cooperative plan'' and inserting in lieu thereof ``an integrated
            natural resources management plan'';
                (6) in section 103 (16 U.S.C. 670c), by striking out ``a
            cooperative plan'' and inserting in lieu thereof ``an integrated
            natural resources management plan'';
                (7) in section 106(a) (16 U.S.C. 670f(a)), by striking out
            ``cooperative plans'' and inserting in lieu thereof ``integrated
            natural resources management plans''; and
                (8) in section 106(c) (16 U.S.C. 670f(c)), by striking out
            ``cooperative plans'' and inserting in lieu thereof ``integrated
            natural resources management plans''.

        (c) Required Elements of Plans.--Section 101(b) of the Sikes Act (16
    U.S.C. 670a(b)) is amended--
                (1) by striking out ``(b) Each cooperative'' and all that
            follows through the end of paragraph (1) and inserting in lieu
            thereof the following:

        ``(b) Required Elements of Plans.--Consistent with the use of
    military installations to ensure the preparedness of the Armed Forces,
    each integrated natural resources management plan prepared under
    subsection (a)--
                ``(1) shall, to the extent appropriate and applicable,
            provide for--
                        ``(A) fish and wildlife management, land management,
                    forest management, and fish- and wildlife-oriented
                    recreation;
                        ``(B) fish and wildlife habitat enhancement or
                    modifications;
                        ``(C) wetland protection, enhancement, and
                    restoration, where necessary for support of fish,
                    wildlife, or plants;
                        ``(D) integration of, and consistency among, the
                    various activities conducted under the plan;
                        ``(E) establishment of specific natural resource
                    management goals and objectives and time frames for
                    proposed action;
                        ``(F) sustainable use by the public of natural
                    resources to the extent that the use is not inconsistent
                    with the needs of fish and wildlife resources;

    [[Page 111 STAT. 2019]]

                        ``(G) public access to the military installation
                    that is necessary or appropriate for the use described
                    in subparagraph (F), subject to requirements necessary
                    to ensure safety and military security;
                        ``(H) enforcement of applicable natural resource
                    laws (including regulations);
                        ``(I) no net loss in the capability of military
                    installation lands to support the military mission of
                    the installation; and
                        ``(J) such other activities as the Secretary of the
                    military department determines appropriate;'';
                (2) in paragraph (2), by adding ``and'' at the end;
                (3) by striking out paragraph (3);
                (4) by redesignating paragraph (4) as paragraph (3); and
                (5) in paragraph (3)(A) (as so redesignated), by striking
            out ``collect the fees therefor,'' and inserting in lieu thereof
            ``collect, spend, administer, and account for fees for the
            permits,''.

    SEC. 2905. <<NOTE: 16 USC 670a note.>>  REVIEW FOR PREPARATION OF
                INTEGRATED NATURAL RESOURCES MANAGEMENT PLANS.

        (a) Definitions.--In this section, the terms ``military
    installation'' and ``United States'' have the meanings provided in
    section 100 of the Sikes Act (as added by section 2911).
        (b) Review of Military Installations.--
                (1) Review.--Not later than 270 days after the date of
            enactment of this Act, the Secretary of each military department
            shall--
                        (A) review each military installation in the United
                    States that is under the jurisdiction of that Secretary
                    to determine the military installations for which the
                    preparation of an integrated natural resources
                    management plan under section 101 of the Sikes Act (as
                    amended by this title) is appropriate; and
                        (B) submit <<NOTE: Reports.>>  to the Secretary of
                    Defense a report on the determinations.
                (2) Report to congress.--Not later than one year after the
            date of enactment of this Act, the Secretary of Defense shall
            submit to Congress a report on the reviews conducted under
            paragraph (1). The report shall include--
                        (A) a list of the military installations reviewed
                    under paragraph (1) for which the Secretary of the
                    appropriate military department determines that the
                    preparation of an integrated natural resources
                    management plan is not appropriate; and
                        (B) for each of the military installations listed
                    under subparagraph (A), an explanation of each reason
                    such a plan is not appropriate.

        (c) Deadline for Integrated Natural Resources Management Plans.--Not
    later than three years after the date of the submission of the report
    required under subsection (b)(2), the Secretary of each military
    department shall, for each military installation with respect to which
    the Secretary has not determined under subsection (b)(2)(A) that
    preparation of an integrated natural resources management plan is not
    appropriate--

    [[Page 111 STAT. 2020]]

                (1) prepare and begin implementing such a plan in accordance
            with section 101(a) of the Sikes Act (as amended by this title);
            or
                (2) in the case of a military installation for which there
            is in effect a cooperative plan under section 101(a) of the
            Sikes Act on the day before the date of enactment of this Act,
            complete negotiations with the Secretary of the Interior and the
            heads of the appropriate State agencies regarding changes to the
            plan that are necessary for the plan to constitute an integrated
            natural resources management plan that complies with that
            section, as amended by this title.

        (d) Public Comment.--The Secretary of each military department shall
    provide an opportunity for the submission of public comments on--
                (1) integrated natural resources management plans proposed
            under subsection (c)(1); and
                (2) changes to cooperative plans proposed under subsection
            (c)(2).

    SEC. 2906. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY
                INSTALLATIONS.

        Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b)) (as
    redesignated by section 2904(c)(4)) is amended by inserting before the
    period at the end the following: ``, unless the military installation is
    subsequently closed, in which case the fees may be transferred to
    another military installation to be used for the same purposes''.

    SEC. 2907. ANNUAL REVIEWS AND REPORTS.

        Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by adding
    at the end the following new subsection:
        ``(f) Reviews and Reports.--
                ``(1) Secretary of defense.--Not later than March 1 of each
            year, the Secretary of Defense shall review the extent to which
            integrated natural resources management plans were prepared or
            were in effect and implemented in accordance with this title in
            the preceding year, and submit a report on the findings of the
            review to the committees. Each report shall include--
                        ``(A) the number of integrated natural resources
                    management plans in effect in the year covered by the
                    report, including the date on which each plan was issued
                    in final form or most recently revised;
                        ``(B) the amounts expended on conservation
                    activities conducted pursuant to the plans in the year
                    covered by the report; and
                        ``(C) an assessment of the extent to which the plans
                    comply with this title.
                ``(2) Secretary of the interior.--Not later than March 1 of
            each year and in consultation with the heads of State fish and
            wildlife agencies, the Secretary of the Interior shall submit a
            report to the committees on the amounts expended by the
            Department of the Interior and the State fish and wildlife
            agencies in the year covered by the report on conservation
            activities conducted pursuant to integrated natural resources
            management plans.
                ``(3) Definition of committees.--In this subsection, the
            term `committees' means--

    [[Page 111 STAT. 2021]]

                        ``(A) the Committee on Resources and the Committee
                    on National Security of the House of Representatives;
                    and
                        ``(B) the Committee on Armed Services and the
                    Committee on Environment and Public Works of the
                    Senate.''.

    SEC. 2908 COOPERATIVE AGREEMENTS.

        Section 103a of the Sikes Act (16 U.S.C. 670c-1) is amended--
                (1) in subsection (a), by striking out ``Secretary of
            Defense'' and inserting in lieu thereof ``Secretary of a
            military department'';
                (2) by striking out subsection (b) and inserting in lieu
            thereof the following new subsection:

        ``(b) Multiyear Agreements.--Funds appropriated to the Department of
    Defense for a fiscal year may be obligated to cover the cost of goods
    and services provided under a cooperative agreement entered into under
    subsection (a) or through an agency agreement under section 1535 of
    title 31, United States Code, during any 18-month period beginning in
    that fiscal year, without regard to whether the agreement crosses fiscal
    years.''.

    SEC. 2909. FEDERAL ENFORCEMENT.

        Title I of the Sikes Act is amended--
                (1) by redesignating section 106 (16 U.S.C. 670f) as section
            108; and
                (2) by inserting after section 105 (16 U.S.C. 670e) the
            following new section:

    ``SEC. 106. <<NOTE: 16 USC 670e-1.>>  FEDERAL ENFORCEMENT OF OTHER LAWS.

        ``All Federal laws relating to the management of natural resources
    on Federal land may be enforced by the Secretary of Defense with respect
    to violations of the laws that occur on military installations within
    the United States.''.

    SEC. 2910. NATURAL RESOURCES MANAGEMENT SERVICES.

        Title I of the Sikes Act is amended by inserting after section 106
    (as added by section 2909) the following new section:

    ``SEC. 107. <<NOTE: 16 USC 670e-2.>>  NATURAL RESOURCES MANAGEMENT
                SERVICES.

        ``To the extent practicable using available resources, the Secretary
    of each military department shall ensure that sufficient numbers of
    professionally trained natural resources management personnel and
    natural resources law enforcement personnel are available and assigned
    responsibility to perform tasks necessary to carry out this title,
    including the preparation and implementation of integrated natural
    resources management plans.''.

    SEC. 2911. DEFINITIONS.

        Title I of the Sikes Act is amended by inserting before section 101
    (16 U.S.C. 670a) the following new section:

    ``SEC. <<NOTE: 16 USC 670.>>  100. DEFINITIONS.

        ``In this title:
                ``(1) Military installation.--The term `military
            installation'--
                        ``(A) means any land or interest in land owned by
                    the United States and administered by the Secretary of
                    Defense or the Secretary of a military department,
                    except

    [[Page 111 STAT. 2022]]

                    land under the jurisdiction of the Assistant Secretary
                    of the Army having responsibility for civil works;
                        ``(B) includes all public lands withdrawn from all
                    forms of appropriation under public land laws and
                    reserved for use by the Secretary of Defense or the
                    Secretary of a military department; and
                        ``(C) does not include any land described in
                    subparagraph (A) or (B) that is subject to an approved
                    recommendation for closure under the Defense Base
                    Closure and Realignment Act of 1990 (part A of title
                    XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
                ``(2) State fish and wildlife agency.--The term `State fish
            and wildlife agency' means the one or more agencies of State
            government that are responsible under State law for managing
            fish or wildlife resources.
                ``(3) United states.--The term `United States' means the
            States, the District of Columbia, and the territories and
            possessions of the United States.''.

    SEC. 2912. REPEAL OF SUPERSEDED PROVISION.

        Section 2 of the Act of October 27, 1986 (Public Law 99-561; 16
    U.S.C. 670a-1), is repealed.

    SEC. 2913. TECHNICAL AMENDMENTS.

        Title I of the Sikes Act, as amended by this title, is amended--
                (1) in the heading for the title, by striking out ``MILITARY
            RESERVATIONS'' and inserting in lieu thereof ``MILITARY
            INSTALLATIONS'';
                (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as
            redesignated by section 2904(c)(4)--
                        (A) in subparagraph (A), by striking out ``the
                    reservation'' and inserting in lieu thereof ``the
                    installation''; and
                        (B) in subparagraph (B), by striking out ``the
                    military reservation'' and inserting in lieu thereof
                    ``the military installation'';
                (3) in section 101(c) (16 U.S.C. 670a(c))--
                        (A) in paragraph (1), by striking out ``a military
                    reservation'' and inserting in lieu thereof ``a military
                    installation''; and
                        (B) in paragraph (2), by striking out ``the
                    reservation'' and inserting in lieu thereof ``the
                    installation'';
                (4) in section 101(e) (16 U.S.C. 670a(e)), by striking ``the
            Federal Grant and Cooperative Agreement Act of 1977 (41 U.S.C.
            501 et seq.)'' and inserting ``chapter 63 of title 31, United
            States Code'';
                (5) in section 102 (16 U.S.C. 670b), by striking out
            ``military reservations'' and inserting in lieu thereof
            ``military installations''; and
                (6) in section 103 (16 U.S.C. 670c)--
                        (A) by striking out ``military reservations'' and
                    inserting in lieu thereof ``military installations'';
                    and
                        (B) by striking out ``such reservations'' and
                    inserting in lieu thereof ``the installations''.

    SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.

        (a) Conservation Programs on Military Installations.--Subsections
    (b) and (c) of section 108 of the Sikes Act (as redesignated by section
    2909(1)) are each amended by striking out ``1983''

    [[Page 111 STAT. 2023]]

    and all that follows through ``1993,'' and inserting in lieu thereof
    ``1998 through 2003,''.
        (b) Conservation Programs on Public Lands.--Section 209 of the Sikes
    Act (16 U.S.C. 670o) is amended--
                (1) in subsection (a), by striking out ``the sum of
            $10,000,000'' and all that follows through ``to enable the
            Secretary of the Interior'' and inserting in lieu thereof
            ``$4,000,000 for each of fiscal years 1998 through 2003, to
            enable the Secretary of the Interior''; and
                (2) in subsection (b), by striking out ``the sum of
            $12,000,000'' and all that follows through ``to enable the
            Secretary of Agriculture'' and inserting in lieu thereof
            ``$5,000,000 for each of fiscal years 1998 through 2003, to
            enable the Secretary of Agriculture''.

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

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

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

                    Subtitle B--Recurring General Provisions

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

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Memorandum of understanding for use of national laboratories
               for
               ballistic missile defense programs.
    Sec. 3132. Defense environmental management privatization projects.
    Sec. 3133. International cooperative stockpile stewardship.
    Sec. 3134. Modernization of enduring nuclear weapons complex.
    Sec. 3135. Tritium production.
    Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel
               rods and other legacy nuclear materials at the Savannah River
               Site.
    Sec. 3137. Limitations on use of funds for laboratory directed research
               and development purposes.
    Sec. 3138. Pilot program relating to use of proceeds of disposal or
               utilization of
               certain Department of Energy assets.
    Sec. 3139. Modification and extension of authority relating to
               appointment of
               certain scientific, engineering, and technical personnel.
    Sec. 3140. Limitation on use of funds for subcritical nuclear weapons
               tests.
    Sec. 3141. Limitation on use of certain funds until future use plans are
               submitted.

                            Subtitle D--Other Matters

    Sec. 3151. Plan for stewardship, management, and certification of
               warheads in the nuclear weapons stockpile.

    [[Page 111 STAT. 2024]]

    Sec. 3152. Repeal of obsolete reporting requirements.
    Sec. 3153. Study and funding relating to implementation of workforce
               restructuring plans.
    Sec. 3154. Report and plan for external oversight of national
               laboratories.
    Sec. 3155. University-based research collaboration program.
    Sec. 3156. Stockpile stewardship program.
    Sec. 3157. Reports on advanced supercomputer sales to certain foreign
               nations.
    Sec. 3158. Transfers of real property at certain Department of Energy
               facilities.
    Sec. 3159. Requirement to delegate certain authorities to site manager
               of Hanford Reservation.
    Sec. 3160. Submittal of biennial waste management reports.
    Sec. 3161. Department of Energy Security Management Board.
    Sec. 3162. Submittal of annual report on status of security functions at
               nuclear weapons facilities.
    Sec. 3163. Modification of authority on Commission on Maintaining United
               States Nuclear Weapons Expertise.
    Sec. 3164. Land transfer, Bandelier National Monument.
    Sec. 3165. Final settlement of Department of Energy community assistance
               obligations with respect to Los Alamos National Laboratory,
               New Mexico.
    Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge,
               Tennessee.
    Sec. 3167. Support for public education in the vicinity of Los Alamos
               National
               Laboratory, New Mexico.
    Sec. 3168. Improvements to Greenville Road, Livermore, California.
    Sec. 3169. Report on alternative system for availability of funds.
    Sec. 3170. Report on remediation under the Formerly Utilized Sites
               Remedial
               Action Program.

              Subtitle A--National Security Programs Authorizations

    SEC. 3101. WEAPONS ACTIVITIES.

        (a) Stockpile Stewardship.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year
    1998 for stockpile stewardship in carrying out weapons activities
    necessary for national security programs in the amount of
    $1,867,150,000, to be allocated as follows:
                (1) For core stockpile stewardship, $1,387,100,000, to be
            allocated as follows:
                        (A) For operation and maintenance, $1,288,290,000.
                        (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), $98,810,000, to be allocated as
                    follows:
                              Project 97-D-102, dual-axis radiographic
                          hydrotest facility, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $46,300,000.
                              Project 96-D-102, stockpile stewardship
                          facilities revitalization, Phase VI, various
                          locations, $19,810,000.
                              Project 96-D-103, ATLAS, Los Alamos National
                          Laboratory, Los Alamos, New Mexico, $13,400,000.
                              Project 96-D-105, contained firing facility
                          addition, Lawrence Livermore National Laboratory,
                          Livermore, California, $19,300,000.
                (2) For inertial fusion, $414,800,000, to be allocated as
            follows:
                        (A) For operation and maintenance, $217,000,000.
                        (B) For the following plant project (including
                    maintenance, restoration, planning, construction,
                    acquisition, and modification of facilities, and land
                    acquisition related thereto), $197,800,000, to be
                    allocated as follows:

    [[Page 111 STAT. 2025]]

                              Project 96-D-111, national ignition facility,
                          location to be determined, $197,800,000.
                (3) For technology transfer and education, $65,250,000, to
            be allocated as follows:
                        (A) For technology transfer, $56,250,000.
                        (B) For education, $9,000,000.

        (b) Stockpile Management.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year
    1998 for stockpile management in carrying out weapons activities
    necessary for national security programs in the amount of
    $2,052,150,000, to be allocated as follows:
                (1) For operation and maintenance, $1,891,265,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $160,885,000, to be allocated
            as follows:
                        Project 98-D-123, stockpile management restructuring
                    initiative, tritium factory modernization and
                    consolidation, Savannah River Site, Aiken, South
                    Carolina, $11,000,000.
                        Project 98-D-124, stockpile management restructuring
                    initiative, Y-12 Plant consolidation, Oak Ridge,
                    Tennessee, $6,450,000.
                        Project 98-D-125, tritium extraction facility,
                    Savannah River Site, Aiken, South Carolina, $9,650,000.
                        Project 98-D-126, accelerator production of tritium,
                    various locations, $67,865,000.
                        Project 97-D-122, nuclear materials storage facility
                    renovation, Los Alamos National Laboratory, Los Alamos,
                    New Mexico, $9,200,000.
                        Project 97-D-124, steam plant wastewater treatment
                    facility upgrade, Y-12 Plant, Oak Ridge, Tennessee,
                    $1,900,000.
                        Project 96-D-122, sewage treatment quality upgrade
                    (STQU), Pantex Plant, Amarillo, Texas, $6,900,000.
                        Project 96-D-123, retrofit heating, ventilation, and
                    air conditioning and chillers for ozone protection, Y-12
                    Plant, Oak Ridge, Tennessee, $2,700,000.
                        Project 95-D-102, chemistry and metallurgy research
                    (CMR) upgrades project, Los Alamos National Laboratory,
                    Los Alamos, New Mexico, $5,000,000.
                        Project 95-D-122, sanitary sewer upgrade, Y-12
                    Plant, Oak Ridge, Tennessee, $12,600,000.
                        Project 94-D-124, hydrogen fluoride supply system,
                    Y-12 Plant, Oak Ridge, Tennessee, $1,400,000.
                        Project 94-D-125, upgrade life safety, Kansas City
                    Plant, Kansas City, Missouri, $2,000,000.
                        Project 93-D-122, life safety upgrades, Y-12 Plant,
                    Oak Ridge, Tennessee, $2,100,000.
                        Project 92-D-126, replace emergency notification
                    system, various locations, $3,200,000.
                        Project 88-D-122, facilities capability assurance
                    program, various locations, $18,920,000.

        (c) Program Direction.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for
    program direction in carrying out weapons activities necessary for
    national security programs in the amount of $250,000,000.

    [[Page 111 STAT. 2026]]

        (d) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in subsections (a) through (c) reduced by $22,608,000.

    SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) Environmental Restoration.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for
    environmental restoration in carrying out environmental restoration and
    waste management activities necessary for national security programs in
    the amount of $1,010,973,000, of which $388,000,000 shall be allocated
    to the uranium enrichment decontamination and decommissioning fund.
        (b) Defense Environmental Management Closure Projects.--Funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1998 for closure projects in carrying out environmental
    restoration and waste management activities necessary for national
    security programs in the amount of $875,000,000, to be allocated as
    follows:
                Project 98-CLR-1, Rocky Flats Closure Site, Denver,
            Colorado, $648,400,000.
                Project 98-CLR-2, Fernald Environmental Management Project,
            Fernald, Ohio, $226,600,000.

        (c) Waste Management.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for waste
    management in carrying out environmental restoration and waste
    management activities necessary for national security programs in the
    amount of $1,571,644,000, to be allocated as follows:
                (1) For operation and maintenance, $1,490,876,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $80,768,000, to be allocated
            as follows:
                        Project 98-D-401, H-tank farm storm water systems
                    upgrade, Savannah River Site, Aiken, South Carolina,
                    $1,000,000.
                        Project 97-D-402, tank farm restoration and safe
                    operations, Richland, Washington, $13,961,000.
                        Project 96-D-408, waste management upgrades,
                    various locations, $8,200,000.
                        Project 95-D-402, install permanent electrical
                    service, Waste Isolation Pilot Plant, Carlsbad, New
                    Mexico, $176,000.
                        Project 95-D-405, industrial landfill V and
                    construction/demolition landfill VII, Y-12 Plant, Oak
                    Ridge,
                    Tennessee, $3,800,000.
                        Project 95-D-407, 219-S secondary containment
                    upgrade, Richland, Washington, $2,500,000.
                        Project 94-D-404, Melton Valley storage tank
                    capacity increase, Oak Ridge National Laboratory, Oak
                    Ridge,
                    Tennessee, $1,219,000.
                        Project 94-D-407, initial tank retrieval systems,
                    Richland, Washington, $15,100,000.

    [[Page 111 STAT. 2027]]

                        Project 93-D-187, high-level waste removal from
                    filled waste tanks, Savannah River Site, Aiken, South
                    Carolina, $17,520,000.
                        Project 92-D-172, hazardous waste treatment and
                    processing facility, Pantex Plant, Amarillo, Texas,
                    $5,000,000.
                        Project 89-D-174, replacement high-level waste
                    evaporator, Savannah River Site, Aiken, South Carolina,
                    $1,042,000.
                        Project 86-D-103, decontamination and waste
                    treatment facility, Lawrence Livermore National
                    Laboratory, Livermore, California, $11,250,000.

        (d) Technology Development.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for
    technology development in carrying out environmental restoration and
    waste management activities necessary for national security programs in
    the amount of $220,000,000.
        (e) Nuclear Materials and Facilities Stabilization.--Funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1998 for nuclear materials and facilities stabilization in
    carrying out environmental restoration and waste management activities
    necessary for national security programs in the amount of
    $1,256,821,000, to be allocated as follows:
                (1) For operation and maintenance, $1,176,114,000.
                (2) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of facilities,
            and the continuation of projects authorized in prior years, and
            land acquisition related thereto), $80,707,000, to be allocated
            as follows:
                        Project 98-D-453, plutonium stabilization and
                    handling system for plutonium finishing plant, Richland,
                    Washington, $8,136,000.
                        Project 98-D-700, road rehabilitation, Idaho
                    National Engineering Laboratory, Idaho, $500,000.
                        Project 97-D-450, actinide packaging and storage
                    facility, Savannah River Site, Aiken, South Carolina,
                    $18,000,000.
                        Project 97-D-451, B-Plant safety class ventilation
                    upgrades, Richland, Washington, $2,000,000.
                        Project 97-D-470, environmental monitoring
                    laboratory/health physics site support facility,
                    Savannah River Site, Aiken, South Carolina, $5,600,000.
                        Project 96-D-406, spent nuclear fuels canister
                    storage and stabilization facility, Richland,
                    Washington, $16,744,000.
                        Project 96-D-461, electrical distribution upgrade,
                    Idaho National Engineering Laboratory, Idaho,
                    $2,927,000.
                        Project 96-D-464, electrical and utility systems
                    upgrade, Idaho Chemical Processing Plant, Idaho National
                    Engineering Laboratory, Idaho, $14,985,000.
                        Project 96-D-471, chlorofluorocarbon heating,
                    ventilation, and air conditioning and chiller retrofit,
                    Savannah River Site, Aiken, South Carolina, $8,500,000.
                        Project 95-D-155, upgrade site road infrastructure,
                    Savannah River Site, South Carolina, $2,713,000.

    [[Page 111 STAT. 2028]]

                        Project 95-D-456, security facilities consolidation,
                    Idaho Chemical Processing Plant, Idaho National
                    Engineering Laboratory, Idaho, $602,000.

        (f) Program Direction.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for
    program direction in carrying out environmental restoration and waste
    management activities necessary for national security programs in the
    amount of $345,751,000.
        (g) Policy and Management.--Funds are hereby authorized to be
    appropriated to the Department of Energy for fiscal year 1998 for policy
    and management in carrying out environmental restoration and waste
    management activities necessary for national security programs in the
    amount of $20,000,000.
        (h) Environmental Science Program.--Funds are hereby authorized to
    be appropriated to the Department of Energy for fiscal year 1998 for the
    environmental science program in carrying out environmental restoration
    and waste management activities necessary for national security programs
    in the amount of $55,000,000.
        (i) Defense Environmental Management Privatization.--Funds are
    hereby authorized to be appropriated to the Department of Energy for
    fiscal year 1998 for environmental management privatization projects in
    carrying out environmental restoration and waste management activities
    necessary for national security programs in the amount of $224,700,000,
    to be allocated as follows:
                Project 98-PVT-1, contact handled transuranic waste
            transportation, Carlsbad, New Mexico, $21,000,000.
                Project 98-PVT-2, spent nuclear fuel dry storage, Idaho
            Falls, Idaho, $27,000,000.
                Project 98-PVT-3, waste pits remedial action, Fernald, Ohio,
            $25,000,000.
                Project 98-PVT-4, spent nuclear fuel transfer and storage,
            Savannah River, South Carolina, $25,000,000.
                Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee,
            $5,000,000.
                Project 98-PVT-6, Ohio silo 3 waste treatment, Fernald,
            Ohio, $6,700,000.
                Project 97-PVT-1, tank waste remediation system phase 1,
            Hanford, Washington, $115,000,000.

        (j) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section for subsections (a) through (h) is the sum of
    the amounts authorized to be appropriated in those subsections reduced
    by $50,000,000.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 1998 for other defense
    activities in carrying out programs necessary for national security in
    the amount of $1,642,310,000, to be allocated as follows:
                (1) For verification and control technology, $478,200,000,
            to be allocated as follows:
                        (A) For nonproliferation and verification research
                    and development, $210,000,000.
                        (B) For arms control, $234,600,000.
                        (C) For intelligence, $33,600,000.
                (2) For nuclear safeguards and security, $47,200,000.
                (3) For security investigations, $25,000,000.

    [[Page 111 STAT. 2029]]

                (4) For emergency management, $20,000,000.
                (5) For program direction, $78,900,000.
                (6) For worker and community transition assistance,
            $61,159,000, to be allocated as follows:
                        (A) For worker and community transition,
                    $57,659,000.
                        (B) For program direction, $3,500,000.
                (7) For fissile materials control and disposition,
            $103,451,000, to be allocated as follows:
                        (A) For operation and maintenance, $99,451,000.
                        (B) For program direction, $4,000,000.
                (8) For environment, safety, and health, defense,
            $94,000,000, to be allocated as follows:
                        (A) For the Office of Environment, Safety, and
                    Health (Defense), $74,000,000.
                        (B) For program direction, $20,000,000.
                (9) For the Office of Hearings and Appeals, $1,900,000.
                (10) For nuclear energy, $47,000,000, to be allocated as
            follows:
                        (A) For nuclear technology research and development
                    (electrometallurgical), $12,000,000.
                        (B) For international nuclear safety (Soviet-
                    designed reactors), $35,000,000.
                (11) For naval reactors development, $670,500,000, to be
            allocated as follows:
                        (A) For operation and maintenance, $635,920,000.
                        (B) For program direction, $20,080,000.
                        (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), $14,500,000, to be allocated as
                    follows:
                              Project 98-D-200, site laboratory/facility
                          upgrade, various locations, $5,700,000.
                              Project 97-D-201, advanced test reactor
                          secondary coolant refurbishment, Idaho National
                          Engineering Laboratory, Idaho, $4,600,000.
                              Project 95-D-200, laboratory systems and hot
                          cell upgrades, various locations, $1,100,000.
                              Project 90-N-102, expended core facility dry
                          cell project, Naval Reactors Facility, Idaho,
                          $3,100,000.
                (12) For independent assessment of Department of Energy
            projects, $15,000,000.

        (b) Adjustment.--The total amount authorized to be appropriated
    pursuant to this section is the sum of the amounts authorized to be
    appropriated in paragraphs (1) through (12) of subsection (a) reduced by
    $6,047,000.

    SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 1998 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.

    [[Page 111 STAT. 2030]]

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--Until the Secretary of Energy submits to the
    congressional defense committees the report referred to in subsection
    (b) and a period of 30 days has elapsed after the date on which such
    committees receive the report, the Secretary may not use amounts
    appropriated pursuant to this title for any program--
                (1) in amounts that exceed, in a fiscal year--
                        (A) 110 percent of the amount authorized for that
                    program by this title; or
                        (B) $1,000,000 more than the amount authorized for
                    that program by this title; or
                (2) which has not been presented to, or requested of,
            Congress.

        (b) Report.--(1) The report referred to in subsection (a) is a
    report containing a full and complete statement of the action proposed
    to be taken and the facts and circumstances relied upon in support of
    such proposed action.
        (2) In the computation of the 30-day period under subsection (a),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (c) Limitations.--(1) In no event may the total amount of funds
    obligated pursuant to this title exceed the total amount authorized to
    be appropriated by this title.
        (2) Funds appropriated pursuant to this title may not be used for an
    item for which Congress has specifically denied funds.

    SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

        (a) In General.--The Secretary of Energy may carry out any
    construction project under the general plant projects authorized by this
    title if the total estimated cost of the construction project does not
    exceed $5,000,000.
        (b) Report to Congress.--If, at any time during the construction of
    any general plant project authorized by this title, the estimated cost
    of the project is revised because of unforeseen cost variations and the
    revised cost of the project exceeds $5,000,000, the Secretary shall
    immediately furnish a complete report to the congressional defense
    committees explaining the reasons for the cost variation.

    SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

        (a) In General.--(1) Except as provided in paragraph (2),
    construction on a construction project may not be started or additional
    obligations incurred in connection with the project above the total
    estimated cost, whenever the current estimated cost of the construction
    project, which is authorized by section 3101, 3102, or 3103, or which is
    in support of national security programs of the Department of Energy and
    was authorized by any previous Act, exceeds by more than 25 percent the
    higher of--
                (A) the amount authorized for the project; or
                (B) the amount of the total estimated cost for the project
            as shown in the most recent budget justification data submitted
            to Congress.

        (2) An action described in paragraph (1) may be taken if--

    [[Page 111 STAT. 2031]]

                (A) the Secretary of Energy has submitted to the
            congressional defense committees a report on the actions and the
            circumstances making such action necessary; and
                (B) a period of 30 days has elapsed after the date on which
            the report is received by the committees.

        (3) In the computation of the 30-day period under paragraph (2),
    there shall be excluded any day on which either House of Congress is not
    in session because of an adjournment of more than 3 days to a day
    certain.
        (b) Exception.--Subsection (a) shall not apply to any construction
    project which has a current estimated cost of less than $5,000,000.

    SEC. 3124. FUND TRANSFER AUTHORITY.

        (a) Transfer to Other Federal Agencies.--The Secretary of Energy may
    transfer funds authorized to be appropriated to the Department of Energy
    pursuant to this title to other Federal agencies for the performance of
    work for which the funds were authorized. Funds so transferred may be
    merged with and be available for the same purposes and for the same
    period as the authorizations of the Federal agency to which the amounts
    are transferred.
        (b) Transfer Within Department of Energy.--(1) Subject to paragraph
    (2), the Secretary of Energy may transfer funds authorized to be
    appropriated to the Department of Energy pursuant to this title between
    any such authorizations. Amounts of authorizations so transferred may be
    merged with and be available for the same purposes and for the same
    period as the authorization to which the amounts are transferred.
        (2) Not more than five percent of any such authorization may be
    transferred between authorizations under paragraph (1). No such
    authorization may be increased or decreased by more than five percent by
    a transfer under such paragraph.
        (c) Limitation.--The authority provided by this section to transfer
    authorizations--
                (1) may only be used to provide funds for items relating to
            activities necessary for national security programs that have a
            higher priority than the items from which the funds are
            transferred; and
                (2) may not be used to provide funds for an item for which
            Congress has specifically denied funds.

        (d) Notice to Congress.--The Secretary of Energy shall promptly
    notify the Committee on Armed Services of the Senate and the Committee
    on National Security of the House of Representatives of any transfer of
    funds to or from authorizations under this title.

    SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

        (a) Requirement for Conceptual Design.--(1) Subject to paragraph (2)
    and except as provided in paragraph (3), before submitting to Congress a
    request for funds for a construction project that is in support of a
    national security program of the Department of Energy, the Secretary of
    Energy shall complete a conceptual design for that project.
        (2) If the estimated cost of completing a conceptual design for a
    construction project exceeds $3,000,000, the Secretary shall submit to
    Congress a request for funds for the conceptual design before submitting
    a request for funds for the construction project.

    [[Page 111 STAT. 2032]]

        (3) The requirement in paragraph (1) does not apply to a request for
    funds--
                (A) for a construction project the total estimated cost of
            which is less than $5,000,000; or
                (B) for emergency planning, design, and construction
            activities under section 3126.

        (b) Authority for Construction Design.--(1) Within the amounts
    authorized by this title, the Secretary of Energy may carry out
    construction design (including architectural and engineering services)
    in connection with any proposed construction project if the total
    estimated cost for such design does not exceed $600,000.
        (2) If the total estimated cost for construction design in
    connection with any construction project exceeds $600,000, funds for
    such design must be specifically authorized by law.

    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
                ACTIVITIES.

        (a) Authority.--The Secretary of Energy may use any funds available
    to the Department of Energy pursuant to an authorization in this title,
    including those funds authorized to be appropriated for advance planning
    and construction design under sections 3101, 3102, and 3103, to perform
    planning, design, and construction activities for any Department of
    Energy national security program construction project that, as
    determined by the Secretary, must proceed expeditiously in order to
    protect public health and safety, to meet the needs of national defense,
    or to protect property.
        (b) Limitation.--The Secretary may not exercise the authority under
    subsection (a) in the case of any construction project until the
    Secretary has submitted to the congressional defense committees a report
    on the activities that the Secretary intends to carry out under this
    section and the circumstances making such activities necessary.
        (c) Specific Authority.--The requirement of section 3125(b)(2) does
    not apply to emergency planning, design, and construction activities
    conducted under this section.

    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY
                PROGRAMS OF THE DEPARTMENT OF ENERGY.

        Subject to the provisions of appropriations Acts and section 3121,
    amounts appropriated pursuant to this title for management and support
    activities and for general plant projects are available for use, when
    necessary, in 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 2000.

    SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

        (a) Transfer Authority for Defense Environmental Management Funds.--
    The Secretary of Energy shall provide the

    [[Page 111 STAT. 2033]]

    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 project listed in subsection (c) or (e) of
                    section 3102 being carried out by the office.
                        (B) A program referred to in subsection (a), (c),
                    (d), or (e) of section 3102 being carried out by the
                    office.
                        (C) A project or program not described in
                    subparagraph (A) or (B) that is for environmental
                    restoration or waste management activities necessary for
                    national security programs of the Department, that is
                    being carried out by the office, and for which defense
                    environmental management funds have been authorized and
                    appropriated before the date of enactment of this Act.
                (2) The term ``defense environmental management funds''
            means funds appropriated to the Department of Energy pursuant to
            an authorization for carrying out environmental restoration and
            waste management activities necessary for national security
            programs.

        (f) Duration of Authority.--The managers of the field offices of the
    Department may exercise the authority provided under subsection (a)
    during the period beginning on October 1, 1997, and ending on September
    30, 1998.

    [[Page 111 STAT. 2034]]

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    SEC. 3131. <<NOTE: 10 USC 2431 note.>>  MEMORANDUM OF UNDERSTANDING FOR
                USE OF NATIONAL LABORATORIES FOR BALLISTIC MISSILE DEFENSE
                PROGRAMS.

        (a) Memorandum of Understanding.--The Secretary of Energy and the
    Secretary of Defense shall enter into a memorandum of understanding for
    the purpose of improving and facilitating the use by the Secretary of
    Defense of the expertise of the national laboratories for the ballistic
    missile defense programs of the Department of Defense.
        (b) Assistance.--The memorandum of understanding shall provide that
    the Secretary of Defense shall request such assistance with respect to
    the ballistic missile defense programs of the Department of Defense as
    the Secretary of Defense and the Secretary of Energy determine can be
    provided through the technical skills and experience of the national
    laboratories, using such financial arrangements as the Secretaries
    determine are appropriate.
        (c) Activities.--The memorandum of understanding shall provide that
    the national laboratories shall carry out those activities necessary to
    respond to requests for assistance from the Secretary of Defense
    referred to in subsection (b). Such activities may include the
    identification of technical modifications and test techniques, the
    analysis of physics problems, the consolidation of range and test
    activities, and the analysis and simulation of theater missile defense
    deployment problems.
        (d) National Laboratories.--For purposes of this section, the
    national laboratories are--
                (1) the Lawrence Livermore National Laboratory, Livermore,
            California;
                (2) the Los Alamos National Laboratory, Los Alamos, New
            Mexico; and
                (3) the Sandia National Laboratories, Albuquerque, New
            Mexico.

    SEC. 3132. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

        (a) Authority To Enter Into Contracts.--The Secretary of Energy may,
    using funds authorized to be appropriated by section 3102(i) for a
    project referred to in that section, enter into a contract that--
                (1) is awarded on a competitive basis;
                (2) requires the contractor to construct or acquire any
            equipment or facilities required to carry out the contract;
                (3) requires the contractor to bear any of the costs of the
            construction, acquisition, and operation of such equipment or
            facilities that arise before the commencement of the provision
            of goods or services under the contract; and
                (4) provides for payment to the contractor under the
            contract only upon the meeting of performance specifications in
            the contract.

        (b) Notice and Wait.--(1) The Secretary may not enter into a
    contract under subsection (a), exercise an authorization to proceed with
    such a contract or extend any contract period for such a contract by
    more than one year until 30 days after the date on

    [[Page 111 STAT. 2035]]

    which the Secretary submits to the congressional defense committees a
    report with respect to the contract.
        (2) Except as provided in paragraph (3), a report under paragraph
    (1) with respect to a contract shall set forth--
                (A) the anticipated costs and fees of the Department under
            the contract, including the anticipated maximum amount of such
            costs and fees;
                (B) any performance specifications in the contract;
                (C) the anticipated dates of commencement and completion of
            the provision of goods or services under the contract;
                (D) the allocation between the Department and the contractor
            of any financial, regulatory, or environmental obligations under
            the contract;
                (E) any activities planned or anticipated to be required
            with respect to the project after completion of the contract;
                (F) the site services or other support to be provided the
            contractor by the Department under the contract;
                (G) the goods or services to be provided by the Department
            or contractor under the contract, including any additional
            obligations to be borne by the Department or contractor with
            respect to such goods or services;
                (H) if the contract provides for financing of the project by
            an entity or entities other than the United States, a detailed
            comparison of the costs of financing the project through such
            entity or entities with the costs of financing the project by
            the United States;
                (I) the schedule for the contract;
                (J) the costs the Department would otherwise have incurred
            in obtaining the goods or services covered by the contract if
            the Department had not proposed to obtain the goods or services
            under this section;
                (K) an estimate and justification of the cost savings, if
            any, to be realized through the contract, including the
            assumptions underlying the estimate;
                (L) the effect of the contract on any ancillary schedules
            applicable to the facility concerned, including milestones in
            site compliance agreements; and
                (M) the plans for maintaining financial and programmatic
            accountability for activities under the contract.

        (3) In the case of a contract under subsection (a) at the Hanford
    Reservation, the report under paragraph (1) shall set forth--
                (A) the matters specified in paragraph (2); and
                (B) if the contract contemplates two pilot vitrification
            plants--
                        (i) an analysis of the basis for the selection of
                    each of the plants in lieu of a single pilot
                    vitrification plant; and
                        (ii) a detailed comparison of the costs to the
                    United States of two pilot plants with the costs to the
                    United States of a single pilot plant.

        (c) Cost Variations.--(1)(A) The Secretary may not enter into a
    contract for a project referred to in subparagraph (B), or obligate
    funds attributable to the capital portion of the cost of such a
    contract, whenever the current estimated cost of the project exceeds the
    amount of the estimated cost of the project as shown in the most recent
    budget justification data submitted to Congress.
        (B) Subparagraph (A) applies to the following:

    [[Page 111 STAT. 2036]]

                (i) A project authorized by section 3102(i).
                (ii) A project authorized by section 3103 of the National
            Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
            201; 110 Stat. 2824) for which a contract has not been entered
            into as of the date of enactment of this Act.

        (2) The Secretary may not obligate funds attributable to the capital
    portion of the cost of a contract entered into before such date for a
    project authorized by such section 3103 whenever the current estimated
    cost of the project equals or exceeds 110 percent of the amount of the
    estimated cost of the project as shown in the most recent budget
    justification data submitted to Congress.
        (d) Use of Funds for Termination of Contract.--Not later than 15
    days before the Secretary obligates funds available for a project
    authorized by section 3102(i) to terminate the contract for the project
    under subsection (a), the Secretary shall notify the congressional
    defense committees of the Secretary's intent to obligate the funds for
    that purpose.
        (e) Annual Report on Contracts.--(1) Not later than February 28 of
    each year, the Secretary shall submit to the congressional defense
    committees a report on the activities, if any, carried out under each
    contract referred to in paragraph (2) during the preceding year. The
    report shall include an update with respect to each such contract of the
    matters specified under subsection (b)(1) as of the date of the report.
        (2) A contract referred to in paragraph (1) is the following:
                (A) A contract under subsection (a) for a project referred
            to in that subsection.
                (B) A contract under section 3103 of the National Defense
            Authorization Act for Fiscal Year 1997.

        (f) Assessment of Contracting Without Sufficient Appropriations.--
    Not later than 90 days after the date of enactment of this Act, the
    Secretary shall submit to the congressional defense committees a report
    assessing whether, and under what circumstances, the Secretary could
    enter into contracts for defense environmental management privatization
    projects in the absence of sufficient appropriations to meet obligations
    under such contracts without thereby violating the provisions of section
    1341 of title 31, United States Code.

    SEC. 3133. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

        (a) Funding Prohibition.--No funds authorized to be appropriated or
    otherwise available to the Department of Energy for fiscal year 1998 may
    be obligated or expended to conduct any activities associated with
    international cooperative stockpile stewardship.
        (b) Exceptions.--Subsection (a) does not apply to the following:
                (1) Activities conducted between the United States and the
            United Kingdom.
                (2) Activities conducted between the United States and
            France.
                (3) Activities carried out under title III of this Act
            relating to cooperative threat reduction with states of the
            former Soviet Union.

    SEC. 3134. MODERNIZATION OF ENDURING NUCLEAR WEAPONS
                COMPLEX.

        (a) Funding.--Subject to subsection (b), of the funds authorized to
    be appropriated to the Department of Energy pursuant to section

    [[Page 111 STAT. 2037]]

    3101, $85,000,000 shall be available for carrying out the program
    described in section 3137(a) of the National Defense Authorization Act
    for Fiscal Year 1996 (42 U.S.C. 2121 note).
        (b) Limitation on Availability.--None of the funds available under
    subsection (a) for carrying out the program referred to in that
    subsection may be obligated or expended until 30 days after the date of
    the receipt by Congress of the report required under subsection (c).
        (c) Report on Allocation of Funds.--Not later than 30 days after the
    date of enactment of this Act, the Secretary of Energy shall submit to
    the congressional defense committees a report setting forth the proposed
    allocation among specific Department of Energy sites of the funds
    available under subsection (a) for the program referred to in that
    subsection.

    SEC. 3135. TRITIUM PRODUCTION.

        (a) Tritium Production Decision.--(1) Not later than December 31,
    1998, the Secretary of Energy shall make a final decision on the
    technologies to be utilized, and the schedule to be adopted, for tritium
    production in order to meet the requirements in the Nuclear Weapons
    Stockpile Memorandum relating to tritium production, including the
    tritium production date of 2005 specified in the Nuclear Weapons
    Stockpile Memorandum.
        (2) In making the final decision, the Secretary shall take into
    account the following:
                (A) The requirements for tritium production specified in the
            Nuclear Weapons Stockpile Memorandum, including, in particular,
            the requirements for the so-called ``upload hedge'' component of
            the nuclear weapons stockpile.
                (B) The activities of the Department of Energy relating to
            the evaluation and demonstration of technologies under the
            accelerator program and the commercial light water reactor
            program.
                (C) The potential liabilities and benefits of each potential
            technology for tritium production, including--
                        (i) regulatory and other barriers that might prevent
                    the production of tritium using the technology by the
                    production date referred to in paragraph (1);
                        (ii) potential difficulties, if any, in licensing
                    the technology;
                        (iii) the variability, if any, in tritium production
                    rates using the technology; and
                        (iv) any other benefits (including scientific or
                    research benefits or the generation of revenue)
                    associated with the technology.

        (b) Reports on Decision.--(1) Upon making a final decision under
    paragraph (1) of subsection (a), the Secretary shall submit to the
    congressional defense committees a report on the final decision. The
    report shall include an assessment of how the selected technology
    addresses the items taken into account under paragraph (2) of that
    subsection.
        (2) If the Secretary determines that it is not possible to make the
    final decision by the date specified in paragraph (1) of subsection (a),
    the Secretary shall submit to the congressional defense committees on
    that date a report that explains in detail why the final decision cannot
    be made by that date.

    [[Page 111 STAT. 2038]]

        (c) Limitation on Availability of Funds.--The Secretary may not
    obligate or expend any funds authorized to be appropriated or otherwise
    made available for the Department of Energy by this Act for the purpose
    of evaluating or utilizing any technology for the production of tritium
    other than a commercial light water reactor or an accelerator until the
    later of--
                (1) January 31, 1999; or
                (2) the date that is 30 days after the date on which the
            Secretary makes a final decision under subsection (a).

    SEC. 3136. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT NUCLEAR FUEL
                RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE SAVANNAH
                RIVER SITE.

        (a) Funding.--Of the funds authorized to be appropriated pursuant to
    section 3102(e), not more than $47,000,000 shall be available for the
    implementation of a program to accelerate the receipt, processing
    (including the H-canyon restart operations), reprocessing, separation,
    reduction, deactivation, stabilization, isolation, and interim storage
    of high level nuclear waste associated with Department of Energy spent
    fuel rods, foreign spent fuel rods, and other nuclear materials that are
    located at the Savannah River Site.
        (b) Requirement for Continuing Operations at Savannah River Site.--
    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 and shall provide technical staff necessary to
    operate and maintain such facilities at that state of readiness.

    SEC. 3137. <<NOTE: 42 USC 7257c.>>  LIMITATIONS ON USE OF FUNDS FOR
                LABORATORY DIRECTED RESEARCH AND DEVELOPMENT PURPOSES.

        (a) General Limitations.--(1) No funds authorized to be appropriated
    or otherwise made available to the Department of Energy in any fiscal
    year after fiscal year 1997 for weapons activities may be obligated or
    expended for activities under the Department of Energy Laboratory
    Directed Research and Development Program, or under any Department of
    Energy technology transfer program or cooperative research and
    development agreement, unless such activities support the national
    security mission of the Department of Energy.
        (2) No funds authorized to be appropriated or otherwise made
    available to the Department of Energy in any fiscal year after fiscal
    year 1997 for environmental restoration, waste management, or nuclear
    materials and facilities stabilization may be obligated or expended for
    activities under the Department of Energy Laboratory Directed Research
    and Development Program, or under any Department of Energy technology
    transfer program or cooperative research and development agreement,
    unless such activities support the environmental restoration mission,
    waste management mission, or materials stabilization mission, as the
    case may be, of the Department of Energy.
        (b) Limitation in Fiscal Year 1998 Pending Submittal of Annual
    Report.--Not more than 30 percent of the funds authorized to be
    appropriated or otherwise made available to the Department of Energy in
    fiscal year 1998 for laboratory directed research and development may be
    obligated or expended for such research and development until the
    Secretary of Energy submits to the congressional defense committees the
    report required by section 3136(b)

    [[Page 111 STAT. 2039]]

    of the National Defense Authorization Act for Fiscal Year 1997 (Public
    Law 104-201; 110 Stat. 2831; 42 U.S.C. 7257b) in 1998.
        (c) Submittal Date for Annual Report on Laboratory Directed Research
    and Development Program.--Paragraph (1) of section 3136(b) of the
    National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201; 110 Stat. 2831; 42 U.S.C. 7257b) is amended by striking out ``The
    Secretary of Energy shall annually submit'' and inserting in lieu
    thereof ``Not later than February 1 each year, the Secretary of Energy
    shall submit''.
        (d) Assessment of Funding Level for Laboratory Directed Research and
    Development.--The Secretary shall include in the report submitted under
    such section 3136(b)(1) in 1998 an assessment of the funding required to
    carry out laboratory directed research and development, including a
    recommendation for the percentage of the funds provided to Government-
    owned, contractor-operated laboratories for national security activities
    that should be made available for such research and development under
    section 3132(c) of the National Defense Authorization Act for Fiscal
    Year 1991 (42 U.S.C. 7257a(c)).
        (e) Definition.--In this section, the term ``laboratory directed
    research and development'' has the meaning given that term in section
    3132(d) of the National Defense Authorization Act for Fiscal Year 1991
    (42 U.S.C. 7257a(d)).

    SEC. 3138. <<NOTE: 42 USC 7256 note.>>  PILOT PROGRAM RELATING TO USE OF
                PROCEEDS OF DISPOSAL OR UTILIZATION OF CERTAIN DEPARTMENT OF
                ENERGY ASSETS.

        (a) Purpose.--The purpose of this section is to encourage the
    Secretary of Energy to dispose of or otherwise utilize certain assets of
    the Department of Energy by making available to the Secretary the
    proceeds of such disposal or utilization for purposes of defraying the
    costs of such disposal or utilization.
        (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding section
    3302 of title 31, United States Code, the Secretary may retain from the
    proceeds of the sale, lease, or disposal of an asset under subsection
    (c) an amount equal to the cost of the sale, lease, or disposal of the
    asset. The Secretary shall utilize amounts retained under this paragraph
    to defray the cost of the sale, lease, or disposal.
        (2) For purposes of paragraph (1), the cost of a sale, lease, or
    disposal shall include--
                (A) the cost of administering the sale, lease, or disposal;
                (B) the cost of recovering or preparing the asset concerned
            for the sale, lease, or disposal; and
                (C) any other cost associated with the sale, lease, or
            disposal.

        (c) Covered Transactions.--Subsection (b) applies to the
    following transactions:
                (1) The sale of heavy water at the Savannah River Site,
            South Carolina, that is under the jurisdiction of the Defense
            Environmental Management Program.
                (2) The sale of precious metals that are under the
            jurisdiction of the Defense Environmental Management Program.
                (3) The lease of buildings and other facilities located at
            the Hanford Reservation, Washington, that are under the
            jurisdiction of the Defense Environmental Management Program.

    [[Page 111 STAT. 2040]]

                (4) The lease of buildings and other facilities located at
            the Savannah River Site that are under the jurisdiction of the
            Defense Environmental Management Program.
                (5) The disposal of equipment and other personal property
            located at the Rocky Flats Defense Environmental Technology
            Site, Colorado, that is under the jurisdiction of the Defense
            Environmental Management Program.
                (6) The disposal of materials at the National Electronics
            Recycling Center, Oak Ridge, Tennessee that are under the
            jurisdiction of the Defense Environmental Management Program.

        (d) Applicability of Disposal Authority.--Nothing in this section
    shall be construed to limit the application of sections 202 and 203(j)
    of the Federal Property and Administrative Services Act of 1949 (40
    U.S.C. 483 and 484(j)) to the disposal of equipment and other personal
    property covered by this section.
        (e) Report.--Not later than January 31, 1999, the Secretary shall
    submit to the congressional defense committees a report on amounts
    retained by the Secretary under subsection (b) during fiscal year 1998.

    SEC. 3139. MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO
                APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND
                TECHNICAL PERSONNEL.

        (a) Repeal of Requirement for EPA Study.--Section 3161 of the
    National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
    337; 108 Stat. 3095; 42 U.S.C. 7231 note) is amended--
                (1) by striking out subsection (c); and
                (2) by redesignating subsection (d) as subsection (c).

        (b) Extension of Authority.--Paragraph (1) of subsection (c) of such
    section, as so redesignated, is amended by striking out ``September 30,
    1997'' and inserting in lieu thereof ``September 30, 1999''.

    SEC. 3140. LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR WEAPONS
                TESTS.

        (a) Limitation.--The Secretary of Energy may not conduct any
    subcritical nuclear weapons tests using funds appropriated or otherwise
    available to the Secretary for fiscal year 1998 until the Secretary
    submits to the Committee on Armed Services of the Senate and the
    Committee on National Security of the House of Representatives a
    detailed report on the use of the funds available to the Secretary for
    fiscal years 1996 and 1997 to conduct such tests.
        (b) Exception.--Subsection (a) shall not apply to the use of funds
    covered by that subsection for subcritical nuclear weapons tests if the
    Secretary--
                (1) determines that the use of such funds for such tests is
            urgently required to meet national security interests; and
                (2) notifies Congress of that determination before using
            such funds for such tests.

    SEC. 3141. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE PLANS ARE
                SUBMITTED.

        (a) Limitation.--(1) Subject to paragraph (2), the Secretary of
    Energy may not use more than 80 percent of the funds available to the
    Secretary pursuant to the authorization of appropriations

    [[Page 111 STAT. 2041]]

    in section 3102(g) until the Secretary submits the plans described in
    subsection (b).
        (2) The limitation in paragraph (1) shall cease to be in effect if
    the Secretary submits, by March 15, 1998, the report described in
    subsection (c).
        (b) Plans.--The plans referred to in subsection (a)(1) are the draft
    future use plan and the final future use plan required under section
    3153(f) of the National Defense Authorization Act for Fiscal Year 1997
    (Public Law 104-201; 110 Stat. 2840; 42 U.S.C. 7274k note).
        (c) Report.--If the Secretary is unable to submit all of the plans
    described in subsection (b) by the deadlines set forth in such section
    3153(f), the Secretary shall submit to Congress a report containing, for
    each plan that will not be submitted by the applicable deadline--
                (1) the status of the plan;
                (2) the reasons why the plan cannot be submitted by the
            applicable deadline; and
                (3) the date by which the plan will be submitted.

                            Subtitle D--Other Matters

    SEC. 3151. <<NOTE: 42 USC 2121 note.>>  PLAN FOR STEWARDSHIP,
                MANAGEMENT, AND CERTIFICATION OF WARHEADS IN THE NUCLEAR
                WEAPONS STOCKPILE.

        (a) Plan Requirement.--The Secretary of Energy shall develop and
    annually update a plan for maintaining the nuclear weapons stockpile.
    The plan shall cover, at a minimum, stockpile stewardship, stockpile
    management, and program direction and shall be consistent with the
    programmatic and technical requirements of the most recent annual
    Nuclear Weapons Stockpile Memorandum.
        (b) Plan Elements.--The plan and each update of the plan shall set
    forth the following:
                (1) The number of warheads (including active and inactive
            warheads) for each warhead type in the nuclear weapons
            stockpile.
                (2) The current age of each warhead type, and any plans for
            stockpile lifetime extensions and modifications or replacement
            of each warhead type.
                (3) The process by which the Secretary of Energy is
            assessing the lifetime, and requirements for lifetime extension
            or replacement, of the nuclear and nonnuclear components of the
            warheads (including active and inactive warheads) in the nuclear
            weapons stockpile.
                (4) The process used in recertifying the safety, security,
            and reliability of each warhead type in the nuclear weapons
            stockpile.
                (5) Any concerns which would affect the ability of the
            Secretary of Energy to recertify the safety, security, or
            reliability of warheads in the nuclear weapons stockpile
            (including active and inactive warheads).

        (c) Annual Submission of Plan to Congress.--The Secretary of Energy
    shall submit to Congress the plan developed under subsection (a) not
    later than March 15, 1998, and shall submit an updated version of the
    plan not later than March 15 of each year

    [[Page 111 STAT. 2042]]

    thereafter. The plan shall be submitted in both classified and
    unclassified form.

    SEC. 3152. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

        (a) Annual Report on Activities of the Atomic Energy Commission.--
    (1) Section 251 of the Atomic Energy Act of 1954 (42 U.S.C. 2016) is
    repealed.
        (2) The table of sections at the beginning of that Act is amended by
    striking out the item relating to section 251.
        (b) Annual Report on Weapons Activities Budgets.--Section 3156 of
    the National Defense Authorization Act for Fiscal Year 1997 (Public Law
    104-201; 110 Stat. 2841; 42 U.S.C. 7271c) is repealed.
        (c) Annual Update of Master Plan for Nuclear Weapons Stockpile.--
    Section 3153 of the National Defense Authorization Act for Fiscal Year
    1996 (Public Law 104-106; 110 Stat. 624; 42 U.S.C. 2121 note) is
    repealed.
        (d) Annual Report on Weapons Activities Budgets.--Section 3159 of
    the National Defense Authorization Act for Fiscal Year 1996 (Public Law
    104-106; 110 Stat. 626; 42 U.S.C. 7271b note) is repealed.
        (e) Annual Report on Stockpile Stewardship Program.--Section 3138 of
    the National Defense Authorization Act for Fiscal Year 1994 (Public Law
    103-160; 107 Stat. 1946; 42 U.S.C. 2121 note) is amended--
                (1) by striking out subsections (d) and (e);
                (2) by redesignating subsections (f), (g), and (h) as
            subsections (d), (e), and (f), respectively; and
                (3) in subsection (e), as so redesignated, by striking out
            ``and the 60-day period referred to in subsection
            (e)(2)(A)(ii)''.

        (f) Annual Report on Development of Tritium Production Capacity.--
    Section 3134 of the National Defense Authorization Act for Fiscal Year
    1993 (Public Law 102-484; 106 Stat. 2639) is repealed.
        (g) Annual Report on Research Relating to Defense Waste Cleanup
    Technology Program.--Section 3141 of the National Defense Authorization
    Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1679;
    42 U.S.C. 7274a) is amended--
                (1) by striking out subsection (c); and
                (2) by redesignating subsection (d) as subsection (c).

        (h) Quarterly Report on Major DoE National Security Programs.--
    Section 3143 of the National Defense Authorization Act for Fiscal Years
    1990 and 1991 (Public Law 101-189; 103 Stat. 1681; 42 U.S.C. 7271a) is
    repealed.
        (i) Annual Report on Nuclear Test Ban Readiness Program.--Section
    1436 of the National Defense Authorization Act, Fiscal Year 1989 (Public
    Law 100-456; 102 Stat. 2075; 42 U.S.C. 2121 note) is amended by striking
    out subsection (e).

    SEC. 3153. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF WORKFORCE
                RESTRUCTURING PLANS.

        (a) Study Requirement.--The Secretary of Energy 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).

    [[Page 111 STAT. 2043]]

        (b) 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:
                (1) 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.
                (2) An analysis of other benefits provided pursuant to such
            plans, including any assistance provided to community reuse
            organizations.
                (3) A description of the funds expended, and the funds
            obligated but not expended, pursuant to such plans as of the
            date of the report.
                (4) A description of the criteria used since October 23,
            1992, in providing assistance pursuant to such plans.
                (5) A comparison of any similar benefits provided--
                        (A) pursuant to such a plan to employees whose
                    employment at the defense nuclear facility covered by
                    the plan is terminated; and
                        (B) 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.

        (c) Conduct of Study.--(1) The study shall be conducted through a
    contract with an independent private auditing firm.
        (2) The Secretary of Energy may not enter into any contract for the
    conduct of the study until the Secretary submits a notification of the
    proposed contract award to the congressional defense committees.
        (3) The Secretary of Energy and the Secretary of Defense shall each
    ensure that any firm conducting the study is provided access to all
    documents in the possession of the Department of Energy or the
    Department of Defense, as the case may be, that are relevant to the
    study, including documents in the possession of the Inspector General of
    the Department of Energy or the Inspector General of the Department of
    Defense.
        (d) Report on Study.--The Secretary of Energy shall submit a report
    to Congress on the results of the study not later than March 31, 1998.
        (e) Limitation on Use of Funds for Local Impact Assistance.--(1)
    None of the funds authorized to be appropriated to the Department of
    Energy pursuant to section 3103(6) may be used for local impact
    assistance pursuant to a plan under section 3161(c)(6) of the National
    Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h(c)(6))
    until--
                (A) with respect to assistance referred to in section
            3161(c)(6)(A) of such Act, the Secretary of Energy coordinates
            with, provides a copy of the plan to, and obtains the approval
            of the Secretary of Labor; and
                (B) with respect to assistance referred to in section
            3161(c)(6)(C) of such Act, the Secretary of Energy coordinates

    [[Page 111 STAT. 2044]]

            with, provides a copy of the plan to, and obtains the approval
            of the Secretary of Commerce.

        (2) For purposes of paragraph (1), if the Secretary of Labor or the
    Secretary of Commerce does not disapprove a plan within 60 days after
    receiving a copy of the plan, the plan is deemed to be approved.
        (f) Semiannual <<NOTE: 42 USC 7274h note.>>  Report to Congress of
    Local Impact Assistance.--The Secretary of Energy shall submit to
    Congress every six months a report setting forth a description of, and
    the amount or value of, all local impact assistance provided during the
    preceding six months under section 3161(c)(6) of the National Defense
    Authorization Act of 1993 (42 U.S.C. 7274h(c)(6)).

        (g) Effect on USEC Privatization Act.--Nothing in this section shall
    be construed as diminishing or affecting the obligations of the
    Secretary of Energy under section 3110(a)(5) of the USEC Privatization
    Act (Public Law 104-134; 110 Stat. 1321-341; 42 U.S.C. 2297h-8(a)(5)).
        (h) 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).

    SEC. 3154. <<NOTE: 42 USC 7274m note.>>  REPORT AND PLAN FOR EXTERNAL
                OVERSIGHT OF NATIONAL LABORATORIES.

        (a) Report.--Not later than July 1, 1999, the Secretary of Energy
    shall submit to Congress a report on the external oversight of the
    national laboratories.
        (b) Matters Covered.--The report shall contain the following:
                (1) A description of the external oversight practices at the
            national laboratories and an analysis of the effectiveness of
            such practices, including the effect of such practices on the
            productivity of the laboratories and the research conducted by
            the laboratories.
                (2) Recommendations regarding the continuation,
            consolidation, or discontinuation of the external oversight
            practices described in paragraph (1), and the rationale for the
            recommendations.
                (3) Recommendations for any new external oversight practices
            that should be implemented, and the rationale for the
            recommendations.
                (4) A plan for carrying out the recommendations.

        (c) National Laboratories Covered.--For purposes of this section,
    the national laboratories are--
                (1) the Lawrence Livermore National Laboratory, Livermore,
            California;
                (2) the Los Alamos National Laboratory, Los Alamos, New
            Mexico; and
                (3) the Sandia National Laboratories, Albuquerque, New
            Mexico.

    SEC. 3155. <<NOTE: 42 USC 7381 note.>>  UNIVERSITY-BASED RESEARCH
                COLLABORATION PROGRAM.

        (a) Findings.--Congress makes the following findings:
                (1) The maintenance of scientific and engineering competence
            in the United States is vital to long-term national security and
            the defense and national security missions of the Department of
            Energy.

    [[Page 111 STAT. 2045]]

                (2) Engaging the universities and colleges of the Nation in
            research on long-range problems of vital national security
            interest will be critical to solving the technology challenges
            faced within the defense and national security programs of the
            Department of Energy in the next century.
                (3) Enhancing collaboration among the national laboratories,
            universities and colleges, and industry will contribute
            significantly to the performance of these Department of Energy
            missions.

        (b) Program.--The Secretary of Energy shall establish a university
    program at a location that can develop the most effective collaboration
    among national laboratories, universities and colleges, and industry in
    support of scientific and engineering advancement in key Department of
    Energy defense and national security program areas.
        (c) Funding.--Of the funds authorized to be appropriated in this
    title to the Department of Energy for fiscal year 1998, the Secretary
    shall make $5,000,000 available for the establishment and operation of
    the program under subsection (b).

    SEC. 3156. <<NOTE: 42 USC 2121 note.>>  STOCKPILE STEWARDSHIP PROGRAM.

        (a) Findings.--Congress makes the following findings:
                (1) Eliminating the threat posed by nuclear weapons to the
            United States is an important national security goal.
                (2) As long as nuclear threats remain, the nuclear deterrent
            of the United States must be effective and reliable.
                (3) A safe, secure, effective, and reliable United States
            nuclear stockpile is central to the current nuclear deterrence
            strategy of the United States.
                (4) The Secretary of Energy has undertaken a stockpile
            stewardship and management program to ensure the safety,
            security, effectiveness, and reliability of the nuclear weapons
            stockpile of the United States, consistent with all United
            States treaty requirements and the requirements of the nuclear
            deterrence strategy of the United States.
                (5) It is the policy of the current administration that new
            nuclear warhead designs are not required to effectively
            implement the nuclear deterrence strategy of the United States.

        (b) Policy.--It is the policy of the United States that--
                (1) activities of the stockpile stewardship program shall be
            directed toward ensuring that the United States possesses a
            safe, secure, effective, and reliable nuclear stockpile,
            consistent with the national security requirements of the United
            States; and
                (2) stockpile stewardship activities of the United States
            shall be conducted in conformity with the terms of the Treaty on
            the Non-Proliferation of Nuclear Weapons and the Comprehensive
            Test Ban Treaty signed by the President on September 24, 1996,
            when and if that treaty enters into force.

    SEC. 3157. <<NOTE: 50 USC app. 2404 note.>>  REPORTS ON ADVANCED
                SUPERCOMPUTER SALES TO
                CERTAIN FOREIGN NATIONS.

        (a) Reports.--The Secretary of Energy shall require that any company
    that is a participant in the Accelerated Strategic Computing Initiative
    (ASCI) program of the Department of Energy report to the Secretary and
    to the Secretary of Defense each sale by that company to a country
    designated as a Tier III country of a computer capable of operating at a
    speed in excess of 2,000

    [[Page 111 STAT. 2046]]

    millions theoretical operations per second (MTOPS). The report shall
    include a description of the following with respect to each such sale:
                (1) The anticipated end-use of the computer sold.
                (2) The software included with the computer.
                (3) Any arrangement under the terms of the sale
            regarding--
                        (A) upgrading the computer;
                        (B) servicing the computer; or
                        (C) furnishing spare parts for the computer.

        (b) Covered Countries.--For purposes of this section, the countries
    designated as Tier III countries are the countries listed as ``computer
    tier 3'' eligible countries in part 740.7 of title 15 of the Code of
    Federal Regulations, as in effect on June 10, 1997 (or any successor
    list).
        (c) Quarterly Submission of Reports.--The Secretary of Energy shall
    require that reports under subsection (a) be submitted quarterly.
        (d) Annual Report.--The Secretary of Energy shall submit to Congress
    an annual report containing all information received under subsection
    (a) during the preceding year. The first annual report shall be
    submitted not later than July 1, 1998.

    SEC. 3158. <<NOTE: 42 USC 7274g.>>  TRANSFERS OF REAL PROPERTY AT
                CERTAIN DEPARTMENT OF ENERGY FACILITIES.

        (a) Transfer Regulations.--(1) The Secretary of Energy shall
    prescribe regulations for the transfer by sale or lease of real property
    at Department of Energy defense nuclear facilities for the purpose of
    permitting the economic development of the property.
        (2) The Secretary of Energy may not transfer real property under the
    regulations prescribed under paragraph (1) until--
                (A) the Secretary submits a notification of the proposed
            transfer to the congressional defense committees; and
                (B) a period of 30 days has elapsed following the date on
            which the notification is submitted.

        (b) Indemnification.--(1) Except as provided in paragraph (3) and
    subject to subsection (c), in the sale or lease of real property
    pursuant to the regulations prescribed under subsection (a), the
    Secretary of Energy may hold harmless and indemnify a person or entity
    described in paragraph (2) against any claim for injury to person or
    property that results from the release or threatened release of a
    hazardous substance or pollutant or contaminant as a result of
    Department of Energy activities at the defense nuclear facility on which
    the real property is located. Before entering into any agreement for
    such a sale or lease, the Secretary shall notify the person or entity
    that the Secretary has authority to provide indemnification to the
    person or entity under this subsection. The Secretary shall include in
    any agreement for such a sale or lease a provision stating whether
    indemnification is or is not provided.
        (2) Paragraph (1) applies to the following persons and entities:
                (A) Any State that acquires ownership or control of real
            property of a defense nuclear facility.
                (B) Any political subdivision of a State that acquires such
            ownership or control.
                (C) Any other person or entity that acquires such ownership
            or control.

    [[Page 111 STAT. 2047]]

        (3) To the extent the persons and entities described in paragraph
    (2) contributed to any such release or threatened release, paragraph (1)
    shall not apply.
        (c) Conditions.--(1) No indemnification on a claim for injury may be
    provided under this section unless the person or entity making a request
    for the indemnification--
                (A) notifies the Secretary of Energy in writing within two
            years after such claim accrues;
                (B) furnishes to the Secretary copies of pertinent papers
            received by the person or entity;
                (C) furnishes evidence or proof of the claim;
                (D) provides, upon request by the Secretary, access to the
            records and personnel of the person or entity for purposes of
            defending or settling the claim; and
                (E) begins action within six months after the date of
            mailing, by certified or registered mail, of notice of final
            denial of the claim by the Secretary.

        (2) For purposes of paragraph (1)(A), the date on which a claim
    accrues is the date on which the person asserting the claim knew (or
    reasonably should have known) that the injury to person or property
    referred to in subsection (b)(1) was caused or contributed to by the
    release or threatened release of a hazardous substance, pollutant, or
    contaminant as a result of Department of Energy activities at the
    defense nuclear facility on which the real property is located.
        (d) Authority of Secretary of Energy.--(1) In any case in which the
    Secretary of Energy determines that the Secretary may be required to
    indemnify a person or entity under this section for any claim for injury
    to person or property referred to in subsection (b)(1), the Secretary
    may settle or defend the claim on behalf of that person or entity.
        (2) In any case described in paragraph (1), if the person or entity
    that the Secretary may be required to indemnify does not allow the
    Secretary to settle or defend the claim, the person or entity may not be
    indemnified with respect to that claim under this section.
        (e) Relationship to Other Law.--Nothing in this section shall be
    construed as affecting or modifying in any way section 120(h) of the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980 (42 U.S.C. 9620(h)).
        (f) Definitions.--In this section:
                (1) The term ``defense nuclear facility'' has the meaning
            provided by the term ``Department of Energy defense nuclear
            facility'' in section 318 of the Atomic Energy Act of 1954 (42
            U.S.C. 2286g).
                (2) The terms ``hazardous substance'', ``release'', and
            ``pollutant or contaminant'' have the meanings provided by
            section 101 of the Comprehensive Environmental Response,
            Compensation, and Liability Act of 1980 (42 U.S.C. 9601).

    SEC. 3159. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE MANAGER
                OF HANFORD RESERVATION.

        Section 3173(b) of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2848; 42 U.S.C. 7274k) is
    amended--
                (1) in paragraph (1)--

    [[Page 111 STAT. 2048]]

                        (A) by striking out ``In addition'' and inserting in
                    lieu thereof ``Except as provided in paragraph (5), in
                    addition''; and
                        (B) by striking out ``Act,'' and inserting in lieu
                    thereof ``subtitle,''; and
                (2) by adding at the end the following new paragraph:

        ``(5) In the case of the Hanford Reservation, Richland, Washington,
    the Secretary shall delegate to the Site Manager the authority described
    in paragraph (1) for fiscal year 1998. The Secretary may withdraw the
    delegated authority if the Secretary--
                ``(A) determines that the Site Manager of the Hanford
            Reservation has misused or misapplied that authority; and
                ``(B) the Secretary submits to Congress a notification of
            the Secretary's intent to withdraw the authority.''.

    SEC. 3160. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

        Section 3153(b)(2)(B) of the National Defense Authorization Act for
    Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended by striking out
    ``odd-numbered year after 1995'' and inserting in lieu thereof ``odd-
    numbered year after 1997''.

    SEC. 3161. <<NOTE: 42 USC 7251 note.>>  DEPARTMENT OF ENERGY SECURITY
                MANAGEMENT BOARD.

        (a) Establishment.--(1) The Secretary of Energy shall establish a
    board to be known as the ``Department of Energy Security Management
    Board'' (in this section referred to as the ``Board'').
        (2) The Board shall advise the Secretary on policy matters,
    operational concerns, strategic planning, personnel, budget,
    procurement, and development of priorities relating to the security
    functions of the Department of Energy.
        (b) Members.--The Board shall be comprised of--
                (1) the Secretary of Energy, who shall serve as chairman;
                (2) the Director of the Office of Nonproliferation and
            National Security of the Department of Energy;
                (3) the Assistant Secretary of Energy for Environmental
            Management;
                (4) the Assistant Secretary of Energy for Defense Programs;
                (5) the Assistant Secretary of Energy for Environment,
            Safety, and Health;
                (6) the Associate Deputy Secretary of Energy for Field
            Management;
                (7) three individuals selected by the Secretary of Defense
            and appointed by the Secretary of Energy;
                (8) an individual selected by the Director of the Federal
            Bureau of Investigation and appointed by the Secretary of
            Energy; and
                (9) an individual selected by the Director of Central
            Intelligence and appointed by the Secretary of Energy.

        (c) Appointments.--(1) The Secretary of Defense, the Director of the
    Federal Bureau of Investigation, and the Director of Central
    Intelligence shall consult with the Secretary of Energy in selecting
    individuals for appointment under paragraphs (7), (8), and (9),
    respectively, of subsection (b).
        (2) The Secretary of Energy may not appoint as a member of the Board
    under paragraph (7), (8), or (9) of subsection (b) an officer or
    employee of the Department of Energy, an employee of a contractor or
    subcontractor of the Department, or an individual under contract with
    the Department.

    [[Page 111 STAT. 2049]]

        (3) The Secretary of Energy shall appoint members of the Board under
    paragraphs (7), (8), and (9) of subsection (b) not later than January
    15, 1998.
        (d) Vacancies.--Any vacancy in the Board shall be filled in the same
    manner as the original appointment.
        (e) Personnel Matters.--(1)(A) Each member of the Board who is not
    an officer or employee of the Federal Government shall be compensated at
    a rate equal to the daily equivalent of the annual rate of basic pay
    prescribed for level V of the Executive Schedule under section 5316 of
    title 5, United States Code, for each day (including travel time) during
    which such member is engaged in the performance of the duties of the
    Board.
        (B) All members of the Board who are officers or employees of the
    United States shall serve without compensation in addition to that
    received for their services as officers or employees of the United
    States.
        (2) The members of the Board shall be allowed travel expenses,
    including per diem in lieu of subsistence, at rates authorized for
    employees of agencies under subchapter I of chapter 57 of title 5,
    United States Code, while away from their homes or regular places of
    business in the performance of services for the Board.
        (f) Applicability of FACA.--The provisions of the Federal Advisory
    Committee Act (5 U.S.C. App.) shall not apply to the activities of the
    Board under this section.
        (g) Termination.--The Board shall terminate on October 31, 2000.
        (h) Security Functions Defined.--In this section, the term
    ``security functions'' means all Department of Energy activities related
    to the safeguarding and security of nuclear weapons and materials,
    protection of classified and unclassified controlled nuclear
    information, and physical and personnel security.

    SEC. 3162. <<NOTE: 42 USC 7274 note.>>  SUBMITTAL OF ANNUAL REPORT ON
                STATUS OF SECURITY FUNCTIONS AT NUCLEAR WEAPONS FACILITIES.

        (a) In General.--Not later than September 1 each year, the Secretary
    of Energy shall submit to the congressional defense committees the
    report entitled ``Annual Report to the President on the Status of
    Safeguards and Security of Domestic Nuclear Weapons Facilities'', or any
    successor report to such report.
        (b) Requirement Relating to Reports Through Fiscal Year 2000.--The
    Secretary shall include with each report submitted under subsection (a)
    in fiscal years 1998 through 2000 any comments on such report by the
    members of the Department of Energy Security Management Board
    established under section 3161 that such members consider appropriate.

    SEC. 3163. MODIFICATION OF AUTHORITY ON COMMISSION ON MAINTAINING UNITED
                STATES NUCLEAR WEAPONS EXPERTISE.

        (a) Commencement of Activities.--Subsection (b)(1) of section 3162
    of the National Defense Authorization Act for Fiscal Year 1997 (Public
    Law 104-201; 110 Stat. 2844; 42 U.S.C. 2121 note) is amended, effective
    January 1, 1998--
                (1) in subparagraph (C), by adding at the end the following
            new sentence: ``The chairman may be designated once five members
            of the Commission have been appointed under subparagraph (A).'';
            and
                (2) by adding at the end the following:

    [[Page 111 STAT. 2050]]

        ``(E) The Commission may commence its activities under this section
    upon the designation of the chairman of the Commission under
    subparagraph (C).''.
        (b) Deadline for Report.--Subsection (d) of that section is amended
    by striking out ``March 15, 1998,'' and inserting in lieu thereof
    ``March 15, 1999,''.

    SEC. 3164. <<NOTE: 16 USC 431 note.>>  LAND TRANSFER, BANDELIER NATIONAL
                MONUMENT.

        (a) Transfer of Administrative Jurisdiction.--The Secretary of
    Energy shall transfer to the Secretary of the Interior administrative
    jurisdiction over a parcel of real property consisting of approximately
    4.47 acres as depicted on the map entitled ``Boundary Map, Bandelier
    National Monument'', No. 315/80,051, dated March 1995.
        (b) Boundary Modification.--The boundary of the Bandelier National
    Monument established by Proclamation No. 1322 (16 U.S.C. 431 note) is
    modified to include the real property transferred under subsection (a).
        (c) Public Availability of Map.--The map described in subsection (a)
    shall be on file and available for public inspection in the Lands Office
    at the Southwest System Support Office of the National Park Service,
    Santa Fe, New Mexico, and in the office of the Superintendent of
    Bandelier National Monument.
        (d) Administration.--The real property and interests in real
    property transferred under subsection (a) shall be--
                (1) administered as part of Bandelier National Monument; and
                (2) subject to all laws applicable to the Bandelier National
            Monument and all laws generally applicable to units of the
            National Park System.

    SEC. 3165. <<NOTE: 42 USC 2391 note.>>  FINAL SETTLEMENT OF DEPARTMENT
                OF ENERGY COMMUNITY ASSISTANCE OBLIGATIONS WITH RESPECT TO
                LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

        (a) In General.--The Secretary of Energy shall--
                (1) convey, without consideration, to the Incorporated
            County of Los Alamos, New Mexico (in this section referred to as
            the ``County''), or to the designee of the County, fee title to
            the parcels of land that are allocated for conveyance to the
            County in the agreement under subsection (e); and
                (2) transfer to the Secretary of the Interior, in trust for
            the Pueblo of San Ildefonso (in this section referred to as the
            ``Pueblo''), administrative jurisdiction over the parcels that
            are allocated for transfer to the Secretary of the Interior in
            such agreement.

        (b) Preliminary Identification of Parcels of Land for Conveyance or
    Transfer.--(1) Not later than 90 days after the date of enactment of
    this Act, the Secretary of Energy shall submit to the congressional
    defense committees a report identifying the parcels of land under the
    jurisdiction of the Secretary at the Los Alamos National Laboratory that
    are suitable for conveyance or transfer under this section.
        (2) A parcel is suitable for conveyance or transfer for purposes of
    paragraph (1) if the parcel--
                (A) is not required to meet the national security mission of
            the Department of Energy or will not be required for that
            purpose before the end of the 10-year period beginning on the
            date of enactment of this Act;

    [[Page 111 STAT. 2051]]

                (B) is likely to be conveyable or transferable, as the case
            may be, under this section not later than the end of such
            period; and
                (C) is suitable for use for a purpose specified in
            subsection (h).

        (c) Review of Title.--(1) Not later than one year after the date of
    enactment of this Act, the Secretary shall submit to the congressional
    defense committees a report setting forth the results of a title search
    on each parcel of land identified as suitable for conveyance or transfer
    under subsection (b), including an analysis of any claims against or
    other impairments to the fee title to each such parcel.
        (2) In the period beginning on the date of the completion of the
    title search with respect to a parcel under paragraph (1) and ending on
    the date of the submittal of the report under that paragraph, the
    Secretary shall take appropriate actions to resolve the claims against
    or other impairments, if any, to fee title that are identified with
    respect to the parcel in the title search.
        (d) Environmental Restoration.--(1) Not later than 21 months after
    the date of enactment of this Act, the Secretary shall--
                (A) identify the environmental restoration or remediation,
            if any, that is required with respect to each parcel of land
            identified under subsection (b) to which the United States has
            fee title;
                (B) carry out any review of the environmental impact of the
            conveyance or transfer of each such parcel that is required
            under the provisions of the National Environmental Policy Act of
            1969 (42 U.S.C. 4321 et seq.); and
                (C) submit to Congress a report setting forth the results of
            the activities under subparagraphs (A) and (B).

        (2) If the Secretary determines under paragraph (1) that a parcel
    described in paragraph (1)(A) requires environmental restoration or
    remediation, the Secretary shall, to the maximum extent practicable,
    complete the environmental restoration or remediation of the parcel not
    later than 10 years after the date of enactment of this Act.
        (e) Agreement for Allocation of Parcels.--As soon as practicable
    after completing the review of titles to parcels of land under
    subsection (c), the Secretary of the Interior, on behalf of the Pueblo
    and for the County, shall submit to the Secretary of Energy an agreement
    between the Secretary of the Interior and the County that allocates
    between the Secretary of the Interior and the County the parcels to
    which the United States has fee title.
        (f) Plan for Conveyance and Transfer.--(1) Not later than 90 days
    after the date of the submittal to the Secretary of Energy of the
    agreement under subsection (e), the Secretary shall submit to the
    congressional defense committees a plan for conveying or transferring
    parcels of land under this section in accordance with the allocation
    specified in the agreement.
        (2) The plan under paragraph (1) shall provide for the completion of
    the conveyance or transfer of parcels under this section not later than
    9 months after the date of the submittal of the plan under that
    paragraph.
        (g) Conveyance or Transfer.--(1) Subject to paragraphs (2) and (3),
    the Secretary shall convey or transfer parcels of land

    [[Page 111 STAT. 2052]]

    in accordance with the allocation specified in the agreement submitted
    to the Secretary under subsection (e).
        (2) In the case of a parcel allocated under the agreement that is
    not available for conveyance or transfer in accordance with the
    requirement in subsection (f)(2) by reason of its requirement to meet
    the national security mission of the Department, the Secretary shall
    convey or transfer the parcel, as the case may be, when the parcel is no
    longer required for that purpose.
        (3)(A) In the case of a parcel allocated under the agreement that is
    not available for conveyance or transfer in accordance with such
    requirement by reason of requirements for environmental restoration or
    remediation, the Secretary shall convey or transfer the parcel, as the
    case may be, upon the completion of the environmental restoration or
    remediation that is required with respect to the parcel.
        (B) If the Secretary determines that environmental restoration or
    remediation cannot reasonably be expected to be completed with respect
    to a parcel by the end of the 10-year period beginning on the date of
    enactment of this Act, the Secretary shall not convey or transfer the
    parcel under this section.
        (h) Use of Conveyed or Transferred Land.--The parcels of land
    conveyed or transferred under this section shall be used for historic,
    cultural, or environmental preservation purposes, economic
    diversification purposes, or community self-sufficiency purposes.
        (i) Treatment of Conveyances and Transfers.--(1) The purpose of the
    conveyances and transfers under this section is to fulfill the
    obligations of the United States with respect to Los Alamos National
    Laboratory, New Mexico, under sections 91 and 94 of the Atomic Energy
    Community Act of 1955 (42 U.S.C. 2391, 2394).
        (2) Upon the completion of the conveyance or transfer of the parcels
    of land available for conveyance or transfer under this section, the
    Secretary shall make no further payments with respect to Los Alamos
    National Laboratory under section 91 or section 94 of the Atomic Energy
    Community Act of 1955.

    SEC. 3166. SENSE OF CONGRESS REGARDING THE Y-12 PLANT IN OAK RIDGE,
                TENNESSEE.

        It is the sense of Congress that the Y-12 Plant in Oak Ridge,
    Tennessee, should be used as a national prototype center and that other
    executive agencies should utilize this center, where appropriate, to
    maximize their efficiency and cost effectiveness.

    SEC. 3167. 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, $5,000,000 shall be available for payment by the Secretary
    of Energy to a nonprofit or not-for-profit 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 the basis of, or 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

    [[Page 111 STAT. 2053]]

    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.
        (c) Report.--Not later than March 1, 1998, the Secretary shall
    submit to the congressional defense committees a report setting forth
    the following:
                (1) The amount of, and a schedule for, payments to the
            Foundation by the Secretary that are in addition to the payment
            provided under subsection (a).
                (2) A plan to ensure that the Secretary makes no other
            payments to support the educational activities referred to in
            subsection (b)(2) after September 30, 2002.

    SEC. 3168. IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, CALIFORNIA.

        From amounts authorized to be appropriated or otherwise made
    available to the Department of Energy by this title, funds shall be
    available for improvements to Greenville Road, Livermore, California, as
    follows:
                (1) $3,500,000 in fiscal year 1998.
                (2) $3,300,000 in fiscal year 1999.

    SEC. 3169. REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF FUNDS.

        (a) Report.--Not later than October 1, 1998, the Secretary of Energy
    shall submit to Congress a report assessing how
    the Department of Energy could carry out a transition from a no-year
    funding system to a limited-period funding system.
        (b) Matters Covered.--The report shall cover the following matters:
                (1) A conceptual proposal on how the no-year funding
            system could be phased out.
                (2) An estimate of the cost of making the transition to a
            limited-period funding system.
                (3) A description of the programmatic effects that could
            occur if the no-year funding system is eliminated.
                (4) A delineation of activities for which the no-year
            funding system should be retained.

        (c) Definitions.--In this section:
                (1) The term ``no-year funding system'' means a funding
            system in which funds are available to the Department of Energy
            until expended.
                (2) The term ``limited-period funding system'' means a
            funding system in which funds are available to the Department of
            Energy for a limited period of time.

    SEC. 3170. REPORT ON REMEDIATION UNDER THE FORMERLY
                UTILIZED SITES REMEDIAL ACTION PROGRAM.

        Not later than March 1, 1998, the Secretary of Energy shall submit
    to Congress a report containing information responding to the following
    questions regarding the Formerly Utilized Sites Remedial Action Program:
                (1) How many Formerly Utilized Sites remain to be
            remediated, what portions of these remaining sites have
            completed remediation (including any offsite contamination),
            what portions of the sites remain to be remediated (including
            any offsite contamination), what types of contaminants are
            present at

    [[Page 111 STAT. 2054]]

            each site, and what are the projected timeframes for completing
            remediation at each site?
                (2) What is the cost of the remaining response actions
            necessary to address actual or threatened releases of hazardous
            substances at each Formerly Utilized Site, including any
            contamination that is present beyond the perimeter of the
            facilities?
                (3) For each site, how much will it cost to remediate the
            radioactive contamination, and how much will it cost to
            remediate the non-radioactive contamination?
                (4) How many sites potentially involve private parties that
            could be held responsible for remediation costs, including
            remediation costs related to offsite contamination?
                (5) What type of agreements under the Formerly Utilized
            Sites Remedial Action Program have been entered into with
            private parties to resolve the level of liability for
            remediation costs at these facilities, and to what extent have
            these agreements been tied to a distinction between radioactive
            and non-radioactive contamination present at these sites?
                (6) What efforts have been undertaken by the Department to
            ensure that the settlement agreements entered into with private
            parties to resolve liability for remediation costs at these
            facilities have been consistent on a program-wide basis?

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.
    Sec. 3202. Report on external regulation of defense nuclear facilities.

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 1998,
    $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.).

    SEC. 3202. <<NOTE: 42 USC 2286 note.>>  REPORT ON EXTERNAL REGULATION OF
                DEFENSE NUCLEAR FACILITIES.

        (a) Reporting Requirement.--The Defense Nuclear Facilities Safety
    Board (in this section referred to as the ``Board'') shall prepare a
    report and make recommendations on its role in the Department of
    Energy's decision to establish external regulation of defense nuclear
    facilities. The report shall include the following:
                (1) An assessment of the value of and the need for the Board
            to continue to perform the functions specified under chapter 21
            of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).
                (2) An assessment of the relationship between the functions
            of the Board and a proposal by the Department of Energy to place
            Department of Energy defense nuclear facilities under the
            jurisdiction of external regulatory agencies.
                (3) An assessment of the functions of the Board and whether
            there is a need to modify or amend such functions.
                (4) An assessment of the relative advantages and
            disadvantages to the Department and the public of continuing the
            functions of the Board with respect to Department of Energy
            defense

    [[Page 111 STAT. 2055]]

            nuclear facilities and replacing the activities of the Board
            with external regulation of such facilities.
                (5) A list of all existing or planned Department of Energy
            defense nuclear facilities that are similar to facilities under
            the regulatory jurisdiction of the Nuclear Regulatory
            Commission.
                (6) A list of all Department of Energy defense nuclear
            facilities that are in compliance with all applicable Department
            of Energy orders, regulations, and requirements relating to the
            design, construction, operation, and decommissioning of defense
            nuclear facilities.
                (7) A list of all Department of Energy defense nuclear
            facilities that have implemented, pursuant to an implementation
            plan, recommendations made by the Board and accepted by the
            Secretary of Energy.
                (8) A list of Department of Energy defense nuclear
            facilities that have a function related to Department weapons
            activities.
                (9)(A) A list of each existing defense nuclear facility that
            the Board determines--
                        (i) should continue to stay within the jurisdiction
                    of the Board for a period of time or indefinitely; and
                        (ii) should come under the jurisdiction of an
                    outside regulatory authority.
                (B) An explanation of the determinations made under
            subparagraph (A).
                (10) For any existing facilities that should, in the opinion
            of the Board, come under the jurisdiction of an outside
            regulatory authority, the date when this move would occur and
            the period of time necessary for the transition.
                (11) A list of any proposed Department of Energy defense
            nuclear facilities that should come under the Board's
            jurisdiction.
                (12) An assessment of regulatory and other issues associated
            with the design, construction, operation, and decommissioning of
            facilities that are not owned by the Department of Energy but
            which would provide services to the Department of Energy.
                (13) An assessment of the role of the Board, if any, in
            privatization projects undertaken by the Department.
                (14) An assessment of the role of the Board, if any, in any
            tritium production facilities.
                (15) An assessment of the comparative advantages and
            disadvantages to the Department of Energy in the event some or
            all Department of Energy defense nuclear facilities were no
            longer included in the functions of the Board and were regulated
            by the Nuclear Regulatory Commission.
                (16) A comparison of the cost, as identified by the Nuclear
            Regulatory Commission, that would be incurred at a gaseous
            diffusion plant to comply with regulations issued by the Nuclear
            Regulatory Commission, with the cost that would be incurred by a
            gaseous diffusion plant if such a plant was considered to be a
            Department of Energy defense nuclear facility as defined by
            chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et
            seq.).

        (b) Comments on Report.--Before submission of the report to Congress
    under subsection (c), the Board shall transmit the report to the
    Secretary of Energy and the Nuclear Regulatory

    [[Page 111 STAT. 2056]]

    Commission. The Secretary and the Commission shall provide their
    comments on the report to both the Board and to Congress.
        (c) Submission to Congress.--Not later than six months after the
    date of the enactment of this Act, the Board shall provide to Congress
    an interim report on the status of the implementation of this section.
    Not later than one year after the date of the enactment of this Act, and
    not earlier than 30 days after receipt of comments from the Secretary of
    Energy and the Nuclear Regulatory Commission under subsection (b), the
    Board shall submit to Congress the report required under subsection (a).
        (d) Definition.--In this section, the term ``Department of Energy
    defense nuclear facility'' has the meaning provided by section 318 of
    the Atomic Energy Act of 1954 (42 U.S.C. 2286g).

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    Sec. 3301. Definitions.
    Sec. 3302. Authorized uses of stockpile funds.
    Sec. 3303. Disposal of beryllium copper master alloy in National Defense
               Stockpile.
    Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
    Sec. 3305. Disposal of cobalt in National Defense Stockpile.
    Sec. 3306. Required procedures for disposal of strategic and critical
               materials.
    Sec. 3307. Return of surplus platinum from the Department of the
               Treasury.

    SEC. 3301. <<NOTE: 50 USC 98d note.>>  DEFINITIONS.

        In this title:
                (1) The term ``National Defense Stockpile'' means the
            stockpile provided for in section 4 of the Strategic and
            Critical Materials Stock Piling Act (50 U.S.C. 98c).
                (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)).
                (3) The term ``Market Impact Committee'' means the Market
            Impact Committee established under section 10(c) of the
            Strategic and Critical Materials Stock Piling Act (50 U.S.C.
            98h-1(c)).

    SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

        (a) Obligation of Stockpile Funds.--During fiscal year 1998, the
    National Defense Stockpile Manager may obligate up to $73,000,000 of the
    funds in the National Defense Stockpile Transaction Fund for the
    authorized uses of such funds under section 9(b)(2) of the Strategic and
    Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)).
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection (a)
    if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date Congress receives the
    notification.
        (c) Limitations.--The authorities provided by this section shall be
    subject to such limitations as may be provided in appropriations Acts.

    [[Page 111 STAT. 2057]]

    <<NOTE: 50 USC 98d note.>> SEC. 3303. DISPOSAL OF BERYLLIUM COPPER
                MASTER ALLOY IN NATIONAL DEFENSE STOCKPILE.

        (a) Disposal Authorization.--Pursuant to section 5(b) of the
    Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)),
    the National Defense Stockpile Manager may dispose of all beryllium
    copper master alloy from the National Defense Stockpile as part of
    continued efforts to modernize the stockpile.
        (b) Precondition for Disposal.--Before beginning the disposal of
    beryllium copper master alloy under subsection (a), the National Defense
    Stockpile Manager shall certify to Congress that the disposal of
    beryllium copper master alloy will not adversely affect the capability
    of the National Defense Stockpile to supply the strategic and critical
    material needs of the United States.
        (c) Consultation With Market Impact Committee.--In disposing of
    beryllium copper master alloy under subsection (a), the National Defense
    Stockpile Manager shall consult with the Market Impact Committee to
    ensure that the disposal of beryllium copper master alloy does not
    disrupt the domestic beryllium industry.
        (d) Extended Sales Contracts.--The National Defense Stockpile
    Manager shall provide for the use of long-term sales contracts for the
    disposal of beryllium copper master alloy under subsection (a) so that
    the domestic beryllium industry can re-absorb this material into the
    market in a gradual and nondisruptive manner. However, no such contract
    shall provide for the disposal of beryllium copper master alloy over a
    period longer than eight years, beginning on the date of the
    commencement of the first contract under this section.
        (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 materials in the National Defense Stockpile.
        (f) Beryllium Copper Master Alloy Defined.--For purposes of this
    section, the term ``beryllium copper master alloy'' means an alloy of
    nominally four percent beryllium in copper.

    SEC. 3304. <<NOTE: 50 USC 98d note.>>  DISPOSAL OF TITANIUM SPONGE IN
                NATIONAL DEFENSE STOCKPILE.

        (a) Disposal Required.--Subject to subsection (b), the National
    Defense Stockpile Manager shall dispose of 34,800 short tons of titanium
    sponge contained in the National Defense Stockpile provided for in
    section 4 of the Strategic and Critical Materials Stock Piling Act (50
    U.S.C. 98c) and excess to stockpile requirements.
        (b) Consultation With Market Impact Committee.--In disposing of
    titanium sponge under subsection (a), the National Defense Stockpile
    Manager shall consult with the Market Impact Committee to ensure that
    the disposal of titanium sponge does not disrupt the domestic titanium
    industry.
        (c) 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 materials in the National Defense Stockpile.

    SEC. 3305. <<NOTE: 50 USC 98d note.>>  DISPOSAL OF COBALT IN NATIONAL
                DEFENSE STOCKPILE.

        (a) Disposal Required.--Subject to subsections (b) and (c), the
    President shall dispose of cobalt contained in the National

    [[Page 111 STAT. 2058]]

    Defense Stockpile so as to result in receipts to the United States in
    amounts equal to--
                (1) $20,000,000 during fiscal year 2003;
                (2) $30,000,000 during fiscal year 2004;
                (3) $34,000,000 during fiscal year 2005;
                (4) $34,000,000 during fiscal year 2006; and
                (5) $34,000,000 during fiscal year 2007.

        (b) Limitation on Disposal Quantity.--The total quantity of cobalt
    authorized for disposal by the President under subsection (a) may not
    exceed 14,058,014 pounds.
        (c) Minimization of Disruption and Loss.--The President may not
    dispose of cobalt 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 cobalt; 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 cobalt under subsection (a)
    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 materials in the National Defense Stockpile.

    SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND CRITICAL
                MATERIALS.

        Section 6(b) of the Strategic and Critical Materials Stock Piling
    Act (50 U.S.C. 98e(b)) is amended in the first sentence by striking out
    ``materials from the stockpile shall be made by formal advertising or
    competitive negotiation procedures.'' and inserting in lieu thereof
    ``strategic and critical materials from the stockpile shall be made in
    accordance with the next sentence.''.

    SEC. 3307. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF THE
                TREASURY.

        (a) Return of Platinum to Stockpile.--Subject to subsection (b), the
    Secretary of the Treasury, upon the request of the Secretary of Defense,
    shall return to the Secretary of Defense for sale or other disposition
    platinum of the National Defense Stockpile that has been loaned to the
    Department of the Treasury by the Secretary of Defense, acting as the
    stockpile manager. The quantity requested and required to be returned
    shall be any quantity that the Secretary of Defense determines
    appropriate for sale or other disposition.
        (b) Alternative Transfer of Funds.--The Secretary of the Treasury,
    with the concurrence of the Secretary of Defense, may transfer to the
    Secretary of Defense funds in a total amount that is equal to the fair
    market value of any platinum requested under subsection (a) and not
    returned. A transfer of funds under this subsection shall be a
    substitute for a return of platinum under subsection (a). Upon a
    transfer of funds as a substitute for a return of platinum, the platinum
    shall cease to be part of the National Defense Stockpile. A transfer of
    funds under this subsection shall be charged to any appropriation for
    the Department of the Treasury and shall be credited to the National
    Defense Stockpile Transaction Fund.

    [[Page 111 STAT. 2059]]

        (c) Responsibility for Costs.--The return of platinum under
    subsection (a) by the Secretary of the Treasury shall be made without
    the expenditure of any funds available to the Department of Defense. The
    Secretary of the Treasury shall be responsible for all costs incurred in
    connection with the return, such as transportation, storage, testing,
    refining, or casting costs.

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.
    Sec. 3402. Price requirement on sale of certain petroleum during fiscal
               year 1998.
    Sec. 3403. Repeal of requirement to assign Navy officers to Office of
               Naval
               Petroleum and Oil Shale Reserves.
    Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1
               and 3.

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        There is hereby authorized to be appropriated to the Secretary of
    Energy $117,000,000 for fiscal year 1998 for the purpose of carrying out
    activities under chapter 641 of title 10, United States Code, relating
    to the naval petroleum reserves (as defined in section 7420(2) of such
    title). Funds appropriated pursuant to such authorization shall remain
    available until expended.

    SEC. 3402. <<NOTE: 10 USC 7430 note.>>  PRICE REQUIREMENT ON SALE OF
                CERTAIN PETROLEUM DURING FISCAL YEAR 1998.

        Notwithstanding section 7430(b)(2) of title 10, United States Code,
    during fiscal year 1998, any sale of any part of the United States share
    of petroleum produced from Naval Petroleum Reserves Numbered 1, 2, and 3
    shall be made at a price not less than 90 percent of the current sales
    price, as estimated by the Secretary of Energy, of comparable petroleum
    in the same area.

    SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO OFFICE OF
                NAVAL PETROLEUM AND OIL SHALE RESERVES.

        Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is repealed.

    SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES NUMBERED 1
                AND 3.

        (a) Transfer Required.--Chapter 641 of title 10, United States Code,
    is amended by adding at the end the following new section:

    ``Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and
                            petroleum exploration, development, and
                            production

        ``(a) Transfer Required.--(1) Upon the enactment of this section,
    the Secretary of Energy shall transfer to the Secretary of the Interior
    administrative jurisdiction over all public domain lands included within
    Oil Shale Reserve Numbered 1 and those public domain lands included
    within the undeveloped tracts of Oil Shale Reserve Numbered 3.
        ``(2) Not later than one year after the date of the enactment of
    this section, the Secretary of Energy shall transfer to the Secretary of
    the Interior administrative jurisdiction over those public domain lands
    included within the developed tract of Oil Shale Reserve Numbered 3,
    which consists of approximately 6,000 acres

    [[Page 111 STAT. 2060]]

    and 24 natural gas wells, together with pipelines and associated
    facilities.
        ``(3) Notwithstanding the transfer of jurisdiction, the Secretary of
    Energy shall continue to be responsible for all environmental
    restoration, waste management, and environmental compliance activities
    that are required under Federal and State laws with respect to
    conditions existing on the lands at the time of the transfer.
        ``(4) Upon the transfer to the Secretary of the Interior of
    jurisdiction over public domain lands under this subsection, the other
    provisions of this chapter shall cease to apply with respect to the
    transferred lands.
        ``(b) Authority To Lease.--(1) Beginning on the date of the
    enactment of this section, or as soon thereafter as practicable, the
    Secretary of the Interior shall enter into leases with one or more
    private entities for the purpose of exploration for, and development and
    production of, petroleum (other than in the form of oil shale) located
    on or in public domain lands in Oil Shale Reserves Numbered 1 and 3
    (including the developed tract of Oil Shale Reserve Numbered 3). Any
    such lease shall be made in accordance with the requirements of the
    Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease of oil
    and gas lands and shall be subject to valid existing rights.
        ``(2) Notwithstanding the delayed transfer of the developed tract of
    Oil Shale Reserve Numbered 3 under subsection (a)(2), the Secretary of
    the Interior shall enter into a lease under paragraph (1) with respect
    to the developed tract before the end of the one-year period beginning
    on the date of the enactment of this section.
        ``(c) Management.--The Secretary of the Interior, acting through the
    Director of the Bureau of Land Management, shall manage the lands
    transferred under subsection (a) in accordance with the Federal Land
    Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) and other
    laws applicable to the public lands.
        ``(d) Transfer of Existing Equipment.--The lease of lands by the
    Secretary of the Interior under this section may include the transfer,
    at fair market value, of any well, gathering line, or related equipment
    owned by the United States on the lands transferred under subsection (a)
    and suitable for use in the exploration, development, or production of
    petroleum on the lands.
        ``(e) Cost Minimization.--The cost of any environmental assessment
    required pursuant to the National Environmental Policy Act of 1969 (42
    U.S.C. 4321 et seq.) in connection with a proposed lease under this
    section shall be paid out of unobligated amounts available for
    administrative expenses of the Bureau of Land Management.
        ``(f) Treatment of Receipts.--(1) Notwithstanding section 35 of the
    Mineral Leasing Act (30 U.S.C. 191), all moneys received during the
    period specified in paragraph (2) from a lease under this section
    (including moneys in the form of sales, bonuses, royalties (including
    interest charges collected under the Federal Oil and Gas Royalty
    Management Act of 1982 (30 U.S.C. 1701 et seq.)), and rentals) shall be
    covered into the Treasury of the United States and shall not be subject
    to distribution to the States pursuant to subsection (a) of such section
    35. Subject to a specific authorization and appropriation for this
    purpose, such moneys may be used

    [[Page 111 STAT. 2061]]

    for reimbursement of environmental restoration, waste management, and
    environmental compliance costs incurred by the United States with
    respect to the lands transferred under subsection (a).
        ``(2) The period referred to in this subsection is the period
    beginning on the date of the enactment of this section and ending on the
    date on which the Secretary of Energy and the Secretary of the Interior
    jointly certify to Congress that the sum of the moneys deposited in the
    Treasury under paragraph (1) is equal to the total of the following:
                ``(A) The cost of all environmental restoration, waste
            management, and environmental compliance activities incurred by
            the United States with respect to the lands transferred under
            subsection (a).
                ``(B) The cost to the United States to originally install
            wells, gathering lines, and related equipment on the transferred
            lands and any other cost incurred by the United States with
            respect to the lands.''.

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

    ``7439. Certain oil shale reserves: transfer of jurisdiction and
               petroleum exploration, development, and production.''.

                       TITLE XXXV--PANAMA CANAL COMMISSION

          Subtitle A--Authorization of Expenditures From Revolving Fund

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

               Subtitle B--Facilitation of Panama Canal Transition

    Sec. 3511. Short title; references.
    Sec. 3512. Definitions relating to canal transition.

    Part I--Transition Matters Relating to Commission Officers and Employees

    Sec. 3521. Authority for the Administrator of the Commission to accept
               appointment as the Administrator of the Panama Canal
               Authority.
    Sec. 3522. Post-Canal transfer personnel authorities.
    Sec. 3523. Enhanced authority of Commission to establish compensation of

               Commission officers and employees.
    Sec. 3524. Travel, transportation, and subsistence expenses for
               Commission personnel no longer subject to Federal travel
               regulation.
    Sec. 3525. Enhanced recruitment and retention authorities.
    Sec. 3526. Transition separation incentive payments.
    Sec. 3527. Labor-management relations.
    Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay
               for
               certain employees separated by Panama Canal Authority after
               Canal Transfer Date.

    Part II--Transition Matters Relating to Operation and Administration of
                                      Canal

    Sec. 3541. Establishment of procurement system and Board of Contract
               Appeals.
    Sec. 3542. Transactions with the Panama Canal Authority.
    Sec. 3543. Time limitations on filing of claims for damages.
    Sec. 3544. Tolls for small vessels.
    Sec. 3545. Date of actuarial evaluation of FECA liability.
    Sec. 3546. Appointment of notaries public.
    Sec. 3547. Commercial services.
    Sec. 3548. Transfer from President to Commission of certain regulatory
               functions
               relating to employment classification appeals.

    [[Page 111 STAT. 2062]]

    Sec. 3549. Enhanced printing authority.
    Sec. 3550. Technical and conforming amendments.

    Subtitle A--Authorization <<NOTE: Panama Canal Commission Authorization
    Act for Fiscal Year 1998.>>  of Expenditures From Revolving Fund

    SEC. 3501. SHORT TITLE.

        This subtitle may be cited as the ``Panama Canal Commission
    Authorization Act for Fiscal Year 1998''.

    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
    1998.
        (b) Limitations.--For fiscal year 1998, the Panama Canal Commission
    may expend from funds in the Panama Canal Revolving Fund not more than
    $85,000 for official reception and representation expenses, of which--
                (1) not more than $23,000 may be used for official reception
            and representation expenses of the Supervisory Board of the
            Commission;
                (2) not more than $12,000 may be used for official reception
            and representation expenses of the Secretary of the Commission;
            and
                (3) not more than $50,000 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 $22,000 per vehicle.

    SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

        Expenditures authorized under this subtitle may be made only in
    accordance with the Panama Canal Treaties of 1977 and any law of the
    United States implementing those treaties.

     Subtitle <<NOTE: Panama Canal Transition Facilitation Act of 1997.>>
    B--Facilitation of Panama Canal Transition

    SEC. 3511. SHORT TITLE; REFERENCES.

        (a) Short <<NOTE: 22 USC 3601 note.>>  Title.--This subtitle may be
    cited as the ``Panama Canal Transition Facilitation Act of 1997''.

        (b) References.--Except as otherwise expressly provided, whenever in
    this subtitle an amendment or repeal is expressed in terms of an
    amendment to, or repeal of, a section or other provision, the reference
    shall be considered to be made to a section

    [[Page 111 STAT. 2063]]

    or other provision of the Panama Canal Act of 1979 (22 U.S.C. 3601 et
    seq.).

    SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

        Section 3 (22 U.S.C. 3602) is amended by adding at the end the
    following new subsection:
        ``(d) For purposes of this Act:
                ``(1) The term `Canal Transfer Date' means December 31,
            1999, such date being the date specified in the Panama Canal
            Treaty of 1977 for the transfer of the Panama Canal from the
            United States of America to the Republic of Panama.
                ``(2) The term `Panama Canal Authority' means the entity
            created by the Republic of Panama to succeed the Panama Canal
            Commission as of the Canal Transfer Date.''.

    PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND EMPLOYEES

    SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT
                APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA CANAL
                AUTHORITY.

        (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613) is
    amended by adding at the end the following new subsection:
        ``(c) The Congress consents, for purposes of the 8th clause of
    article I, section 9 of the Constitution of the United States, to the
    acceptance by the individual serving as Administrator of the Commission
    of appointment by the Republic of Panama to the position of
    Administrator of the Panama Canal Authority. Such consent is effective
    only if that individual, while serving in both such positions, serves as
    Administrator of the Panama Canal Authority without compensation, except
    for payments by the Republic of Panama of travel and entertainment
    expenses, including per diem payments.''.
        (b) Waiver of Ethics and Reporting Requirements.--Such section is
    further amended by adding at the end the following new subsection:
        ``(d) If before the Canal Transfer Date the Republic of Panama
    appoints as the Administrator of the Panama Canal Authority the
    individual serving as the Administrator of the Commission and if that
    individual accepts the appointment--
                ``(1) during any period during which that individual serves
            as both Administrator of the Commission and the Administrator of
            the Panama Canal Authority--
                        ``(A) the Foreign Agents Registration Act of 1938,
                    as amended (22 U.S.C. 611 et seq.), shall not apply to
                    that individual with respect to service as the
                    Administrator of the Panama Canal Authority;
                        ``(B) that individual, with respect to participation
                    in any particular matter as the Administrator of the
                    Panama Canal Commission, is not subject to section
                    208(a) of title 18, United States Code, insofar as that
                    section would otherwise apply to that matter only
                    because the matter will have a direct and predictable
                    effect on the financial interest of the Panama Canal
                    Authority;
                        ``(C) that individual is not subject to sections 203
                    and 205 of title 18, United States Code, with respect to
                    official

    [[Page 111 STAT. 2064]]

                    acts performed as an agent or attorney for or otherwise
                    representing the Panama Canal Authority; and
                        ``(D) that individual is not subject to sections
                    501(a) and 502(a)(4) of the Ethics in Government Act of
                    1978 (5 U.S.C. App.), with respect to compensation
                    received for, and service in, the position of
                    Administrator of the Panama Canal Authority; and
                ``(2) effective upon termination of the individual's
            appointment as Administrator of the Panama Canal Commission at
            noon on the Canal Transfer Date, that individual is not subject
            to section 207 of title 18, United States Code, with respect to
            acts done in carrying out official duties as Administrator of
            the Panama Canal Authority.''.

    SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

        (a) Waiver of Certain Post-Employment Restrictions for Commission
    Personnel Becoming Employees of the Panama Canal Authority.--Section
    1112 (22 U.S.C. 3622) is amended by adding at the end the following new
    subsection:
        ``(e)(1) Section 207 of title 18, United States Code, does not apply
    to a covered individual with respect to acts done in carrying out
    official duties as an officer or employee of the Panama Canal Authority.
        ``(2) For purposes of paragraph (1), a covered individual is an
    officer or employee of the Panama Canal Authority who was an officer or
    employee of the Commission (other than the Administrator) and whose
    employment with the Commission terminated at noon on the Canal Transfer
    Date.
        ``(3) This subsection is effective as of the Canal Transfer Date.''.
        (b) Consent of Congress for Acceptance by Reserve and Retired
    Members of the Uniformed Services of Employment by Panama Canal
    Authority.--Such section is further amended by adding after subsection
    (e), as added by subsection (a), the following new subsection:
        ``(f)(1) The Congress consents to the following persons accepting
    civil employment (and compensation for that employment) with the Panama
    Canal Authority for which the consent of the Congress is required by the
    last paragraph of section 9 of article I of the Constitution of the
    United States, relating to acceptance of emoluments, offices, or titles
    from a foreign government:
                ``(A) Retired members of the uniformed services.
                ``(B) Members of a reserve component of the armed forces.
                ``(C) Members of the Commissioned Reserve Corps of the
            Public Health Service.

        ``(2) The consent of the Congress under paragraph (1) is effective
    without regard to subsection (b) of section 908 of title 37, United
    States Code (relating to approval required for employment of Reserve and
    retired members by foreign governments).''.

    SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION OF
                COMMISSION OFFICERS AND EMPLOYEES.

        (a) Repeal of Limitations on Commission Authority.--The following
    provisions are repealed:
                (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.
                (2) Section 1219 (22 U.S.C. 3659), relating to salary
            protection upon conversion of pay rate.

    [[Page 111 STAT. 2065]]

                (3) Section 1225 (22 U.S.C. 3665), relating to minimum level
            of pay and minimum annual increases.

        (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is amended by
    adding at the end the following new subsection:
        ``(c) In the case of an individual who is an officer or employee of
    the Commission on the day before the date of the enactment of the Panama
    Canal Transition Facilitation Act of 1997 and who has not had a break in
    service with the Commission since that date, the rate of basic pay for
    that officer or employee on or after that date may not be less than the
    rate in effect for that officer or employee on the day before that date
    of enactment except--
                ``(1) as provided in a collective bargaining agreement;
                ``(2) as a result of an adverse action against the officer
            or employee; or
                ``(3) pursuant to a voluntary demotion.''.

        (c) Cross-Reference Amendments.--(1) Section 1216 (22 U.S.C. 3656)
    is amended by striking out ``1215'' and inserting in lieu thereof
    ``1202''.
        (2) Section 1218 (22 U.S.C. 3658) is amended by striking out
    ``1215'' and ``1217'' and inserting in lieu thereof ``1202'' and
    ``1217(a)'', respectively.
        (d) 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 ``or the Panama Canal Act Amendments of 1996'' and
    inserting in lieu thereof ``, the Panama Canal Act Amendments of 1996
    (subtitle B of title XXXV of Public Law 104-201; 110 Stat. 2860), or the
    Panama Canal Transition Facilitation Act of 1997''.

    SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR
                COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL TRAVEL
                REGULATION.

        (a) Repeal of Applicability of Title 5 Provisions.--(1) Section 1210
    (22 U.S.C. 3650) is amended by striking out subsections (a), (b), and
    (c).
        (2) Section 1224 (22 U.S.C. 3664) is amended--
                (A) by striking out paragraph (10); and
                (B) by redesignating paragraphs (11) through (20) as
            paragraphs (10) through (19), respectively.

        (b) Conforming Amendments.--(1) Section 1210 is further amended--
                (A) by redesignating subsection (d)(1) as subsection (a) and
            in that subsection striking out ``paragraph (2)'' and inserting
            in lieu thereof ``subsection (b)''; and
                (B) by redesignating subsection (d)(2) as subsection (b) and
            in that subsection--
                        (i) striking out ``Notwithstanding paragraph (1),
                    an'' and inserting in lieu thereof ``An''; and
                        (ii) striking out ``referred to in paragraph (1)''
                    and inserting in lieu thereof ``who is a citizen of the
                    Republic of Panama''.

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

                             ``air transportation''.

        (c) Effective Date.--The <<NOTE: 22 USC 3650 note.>>  amendments
    made by this section shall take effect on January 1, 1999.

    [[Page 111 STAT. 2066]]

    SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

        (a) Recruitment, Relocation, and Retention Bonuses.--Section 1217
    (22 U.S.C. 3657) is amended--
                (1) by redesignating subsection (c) as subsection (e);
                (2) in subsection (e) (as so redesignated), by striking out
            ``for the same or similar work performed in the United States by
            individuals employed by the Government of the United States''
            and inserting in lieu thereof ``of the individual to whom the
            compensation is paid''; and
                (3) by inserting after subsection (b) the following new
            subsections:

        ``(c)(1) The Commission may pay a recruitment bonus to an individual
    who is newly appointed to a position with the Commission, or a
    relocation bonus to an employee of the Commission who must relocate to
    accept a position, if the Commission determines that the Commission
    would be likely, in the absence of such a bonus, to have difficulty in
    filling the position.
        ``(2) A recruitment or relocation bonus may be paid to an employee
    under this subsection only if the employee enters into an agreement with
    the Commission to complete a period of employment established in the
    agreement. If the employee voluntarily fails to complete such period of
    employment or is separated from service in such employment as a result
    of an adverse action before the completion of such period, the employee
    shall repay the entire amount of the bonus.
        ``(3) A recruitment or relocation bonus under this subsection may be
    paid as a lump sum. A bonus under this subsection may not be considered
    to be part of the basic pay of an employee.
        ``(d)(1) The Commission may pay a retention bonus to an employee of
    the Commission if the Commission determines that--
                ``(A) the employee has unusually high or unique
            qualifications and those qualifications make it essential for
            the Commission to retain the employee for a period specified by
            the Commission ending not later than the Canal Transfer Date, or
            the Commission otherwise has a special need for the services of
            the employee making it essential for the Commission to retain
            the employee for a period specified by the Commission ending not
            later than the Canal Transfer Date; and
                ``(B) the employee would be likely to leave employment with
            the Commission before the end of that period if the retention
            bonus is not paid.

        ``(2) A retention bonus under this subsection--
                ``(A) shall be in a fixed amount;
                ``(B) shall be paid on a pro rata basis (over the period
            specified by the Commission as essential for the retention of
            the employee), with such payments to be made at the same time
            and in the same manner as basic pay; and
                ``(C) may not be considered to be part of the basic pay of
            an employee.

        ``(3) A decision by the Commission to exercise or to not exercise
    the authority to pay a bonus under this subsection shall not be subject
    to review under any statutory procedure or any agency or negotiated
    grievance procedure except under any of the laws referred to in section
    2302(d) of title 5, United States Code.''.
        (b) Educational Services.--Section 1321(e)(2) (22 U.S.C. 3731(e)(2))
    is amended by striking out ``and persons'' and inserting in lieu thereof
    ``, to other Commission employees when determined

    [[Page 111 STAT. 2067]]

    by the Commission to be necessary for their recruitment or retention,
    and to other persons''.

    SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

        Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by adding
    at the end of subchapter III the following new section:

                   ``transition separation incentive payments

        ``Sec. 1233. <<NOTE: 22 USC 3673.>>  (a) In applying to the
    Commission and employees of the Commission the provisions of section 663
    of the Treasury, Postal Service, and General Government Appropriations
    Act, 1997 (as contained in section 101(f) of division A of Public Law
    104-208; 110 Stat. 3009-383), relating to voluntary separation
    incentives for employees of certain Federal agencies (in this section
    referred to as `section 663')--
                ``(1) the term `employee' shall mean an employee of the
            Commission who has served in the Republic of Panama in a
            position with the Commission for a continuous period of at least
            three years immediately before the employee's separation under
            an appointment without time limitation and who is covered under
            the Civil Service Retirement System or the Federal Employees'
            Retirement System under subchapter III of chapter 83 or chapter
            84, respectively, of title 5, United States Code, other than--
                        ``(A) an employee described in any of subparagraphs
                    (A) through (F) of subsection (a)(2) of section 663; or
                        ``(B) an employee of the Commission who, during the
                    24-month period preceding the date of separation, has
                    received a recruitment or relocation bonus under section
                    1217(c) of this Act or who, within the 12-month period
                    preceding the date of separation, received a retention
                    bonus under section 1217(d) of this Act;
                ``(2) the strategic plan under subsection (b) of section 663
            shall include (in lieu of the matter specified in subsection
            (b)(2) of that section)--
                        ``(A) the positions to be affected, identified by
                    occupational category and grade level;
                        ``(B) the number and amounts of separation incentive
                    payments to be offered; and
                        ``(C) a description of how such incentive payments
                    will facilitate the successful transfer of the Panama
                    Canal to the Republic of Panama;
                ``(3) a separation incentive payment under section 663 may
            be paid to a Commission employee only to the extent necessary to
            facilitate the successful transfer of the Panama Canal by the
            United States of America to the Republic of Panama as required
            by the Panama Canal Treaty of 1977;
                ``(4) such a payment--
                        ``(A) may be in an amount determined by the
                    Commission not to exceed $25,000; and
                        ``(B) may be made (notwithstanding the limitation
                    specified in subsection (c)(2)(D) of section 663) in the
                    case of an eligible employee who voluntarily separates
                    (whether by retirement or resignation) during the 90-day
                    period beginning on the date of the enactment of this
                    section or during the period beginning on October 1,
                    1998, and ending on December 31, 1998;

    [[Page 111 STAT. 2068]]

                ``(5) in the case of not more than 15 employees who (as
            determined by the Commission) are unwilling to work for the
            Panama Canal Authority after the Canal Transfer Date and who
            occupy critical positions for which (as determined by the
            Commission) at least two years of experience is necessary to
            ensure that seasoned managers are in place on and after the
            Canal Transfer Date, such a payment (notwithstanding paragraph
            (4))--
                        ``(A) may be in an amount determined by the
                    Commission not to exceed 50 percent of the basic pay of
                    the employee; and
                        ``(B) may be made (notwithstanding the limitation
                    specified in subsection (c)(2)(D) of section 663) in the
                    case of such an employee who voluntarily separates
                    (whether by retirement or resignation) during the 90-day
                    period beginning on the date of the enactment of this
                    section; and
                ``(6) the provisions of subsection (f) of section 663 shall
            not apply.

        ``(b) A decision by the Commission to exercise or to not exercise
    the authority to pay a transition separation incentive under this
    section shall not be subject to review under any statutory procedure or
    any agency or negotiated grievance procedure except under any of the
    laws referred to in section 2302(d) of title 5, United States Code.''.

    SEC. 3527. LABOR-MANAGEMENT RELATIONS.

        Section 1271 (22 U.S.C. 3701) is amended by adding at the end the
    following new subsection:
        ``(c)(1) This subsection applies to any matter that becomes the
    subject of collective bargaining between the Commission and the
    exclusive representative for any bargaining unit of employees of the
    Commission during the period beginning on the date of the enactment of
    this subsection and ending on the Canal Transfer Date.
        ``(2)(A) The resolution of impasses resulting from collective
    bargaining between the Commission and any such exclusive representative
    during that period shall be conducted in accordance with such procedures
    as may be mutually agreed upon between the Commission and the exclusive
    representative (without regard to any otherwise applicable provisions of
    chapter 71 of title 5, United States Code). Such mutually agreed upon
    procedures shall become effective upon transmittal by the Chairman of
    the Supervisory Board of the Commission to the Congress of notice of the
    agreement to use those procedures and a description of those procedures.
        ``(B) The Federal Services Impasses Panel shall not have
    jurisdiction to resolve any impasse between the Commission and any such
    exclusive representative in negotiations over a procedure for resolving
    impasses.
        ``(3) If the Commission and such an exclusive representative do not
    reach an agreement concerning a procedure for resolving impasses with
    respect to a bargaining unit and transmit notice of the agreement under
    paragraph (2) on or before July 1, 1998, the following shall be the
    procedure by which collective bargaining impasses between the Commission
    and the exclusive representative for that bargaining unit shall be
    resolved:

    [[Page 111 STAT. 2069]]

                ``(A) If bargaining efforts do not result in an agreement,
            either party may timely request the Federal Mediation and
            Conciliation Service to assist in achieving an agreement.
                ``(B) If an agreement is not reached within 45 days after
            the date on which either party requests the assistance of the
            Federal Mediation and Conciliation Service in writing (or within
            such shorter period as may be mutually agreed upon by the
            parties), the parties shall be considered to be at an impasse
            and the Federal Mediation and Conciliation Service shall
            immediately notify the Federal Services Impasses Panel of the
            Federal Labor Relations Authority, which shall decide the
            impasse.
                ``(C) If the Federal Services Impasses Panel fails to issue
            a decision within 90 days after the date on which notice under
            subparagraph (B) is received by the Panel (or within such
            shorter period as may be mutually agreed upon by the parties),
            the efforts of the Panel shall be terminated.
                ``(D) In such a case, the Chairman of the Panel (or another
            member in the absence of the Chairman) shall immediately
            determine the matter by a drawing (conducted in such manner as
            the Chairman (or, in the absence of the Chairman, such other
            member) determines appropriate) between the last offer of the
            Commission and the last offer of the exclusive representative,
            with the offer chosen through such drawing becoming the binding
            resolution of the matter.

        ``(4) In the case of a notice of agreement described in paragraph
    (2)(A) that is transmitted to the Congress as described in the second
    sentence of that paragraph after July 1, 1998, the impasse resolution
    procedures covered by that notice shall apply to any impasse between the
    Commission and the other party to the agreement that is unresolved on
    the date on which that notice is transmitted to the Congress.''.

    SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE PAY
                FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL AUTHORITY
                AFTER CANAL TRANSFER DATE.

        (a) Availability of Revolving Fund.--Section 1302(a) (22 U.S.C.
    3712(a)) is amended by adding at the end the following new paragraph:
                ``(10) Payment to the Panama Canal Authority, not later than
            the Canal Transfer Date, of such amount as is computed by the
            Commission to be the future amount of severance pay to be paid
            by the Panama Canal Authority to employees whose employment with
            the Authority is terminated, to the extent that such severance
            pay is attributable to periods of service performed with the
            Commission before the Canal Transfer Date (and assuming for
            purposes of such computation that the Panama Canal Authority, in
            paying severance pay to terminated employees, will provide for
            crediting of periods of service with the Commission).''.

        (b) Stylistic Amendments.--Such section is further
    amended--
                (1) by striking out ``for--'' in the matter preceding
            paragraph (1) and inserting in lieu thereof ``for the following
            purposes:'';
                (2) by capitalizing the initial letter of the first word in
            each of paragraphs (1) through (9);

    [[Page 111 STAT. 2070]]

                (3) by striking out the semicolon at the end of each of
            paragraphs (1) through (7) and inserting in lieu thereof a
            period; and
                (4) by striking out ``; and'' at the end of paragraph (8)
            and inserting in lieu thereof a period.

    PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF
                                      CANAL

    SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT
                APPEALS.

        Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.)
    is amended by inserting after the title heading the following new
    chapter:

                            ``Chapter 1--Procurement

                              ``procurement system

        ``Sec. 3101. (a) Panama <<NOTE: 22 USC 3861.>>  Canal Acquisition
    Regulation.--(1) The Commission shall establish by regulation a
    comprehensive procurement system. The regulation shall be known as the
    `Panama Canal Acquisition Regulation' (in this section referred to as
    the `Regulation') and shall provide for the procurement of goods and
    services by the Commission in a manner that--
                ``(A) applies the fundamental operating principles and
            procedures in the Federal Acquisition Regulation;
                ``(B) uses efficient commercial standards of practice; and
                ``(C) is suitable for adoption and uninterrupted use by the
            Republic of Panama after the Canal Transfer Date.

        ``(2) The Regulation shall contain provisions regarding the
    establishment of the Panama Canal Board of Contract Appeals described in
    section 3102.
        ``(b) Supplement to Regulation.--The Commission shall develop a
    Supplement to the Regulation (in this section referred to as the
    `Supplement') that identifies both the provisions of Federal law
    applicable to procurement of goods and services by the Commission and
    the provisions of Federal law waived by the Commission under subsection
    (c).
        ``(c) Waiver Authority.--(1) Subject to paragraph (2), the
    Commission shall determine which provisions of Federal law should not
    apply to procurement by the Commission and may waive those laws for
    purposes of the Regulation and Supplement.
        ``(2) For purposes of paragraph (1), the Commission may not waive--
                ``(A) section 27 of the Office of Federal Procurement Policy
            Act (41 U.S.C. 423);
                ``(B) the Contract Disputes Act of 1978 (41 U.S.C. 601 et
            seq.), other than section 10(a) of such Act (41 U.S.C. 609(a));
            or
                ``(C) civil rights, environmental, or labor laws.

        ``(d) Consultation With Administrator for Federal Procurement
    Policy.--In establishing the Regulation and developing the Supplement,
    the Commission shall consult with the Administrator for Federal
    Procurement Policy.

    [[Page 111 STAT. 2071]]

        ``(e) Effective Date.--The <<NOTE: Federal Register, publication.>>
    Regulation and the Supplement shall take effect on the date of
    publication in the Federal Register, or January 1, 1999, whichever is
    earlier.

                    ``panama canal board of contract appeals

        ``Sec. 3102. (a) <<NOTE: 22 USC 3862.>>  Establishment.--(1) The
    Secretary of Defense, in consultation with the Commission, shall
    establish a board of contract appeals, to be known as the Panama Canal
    Board of Contract Appeals, in accordance with section 8 of the Contract
    Disputes Act of 1978 (41 U.S.C. 607). Except as otherwise provided by
    this section, the Panama Canal Board of Contract Appeals (in this
    section referred to as the `Board') shall be subject to the Contract
    Disputes Act of 1978 (41 U.S.C. 601 et seq.) in the same manner as any
    other agency board of contract appeals established under that Act.

        ``(2) The Board shall consist of three members. At least one member
    of the Board shall be licensed to practice law in the Republic of
    Panama. Individuals appointed to the Board shall take an oath of office,
    the form of which shall be prescribed by the Secretary of Defense.
        ``(b) Exclusive Jurisdiction To Decide Appeals.--Notwithstanding
    section 10(a)(1) of the Contract Disputes Act of 1978 (41 U.S.C.
    609(a)(1)) or any other provision of law, the Board shall have exclusive
    jurisdiction to decide an appeal from a decision of a contracting
    officer under section 8(d) of such Act (41 U.S.C. 607(d)).
        ``(c) Exclusive Jurisdiction To Decide Protests.--The Board shall
    decide protests submitted to it under this subsection by interested
    parties in accordance with subchapter V of title 31, United States Code.
    Notwithstanding section 3556 of that title, section 1491(b) of title 28,
    United States Code, and any other provision of law, the Board shall have
    exclusive jurisdiction to decide such protests. For purposes of this
    subsection--
                ``(1) except as provided in paragraph (2), each reference to
            the Comptroller General in sections 3551 through 3555 of title
            31, United States Code, is deemed to be a reference to the
            Board;
                ``(2) the reference to the Comptroller General in section
            3553(d)(3)(C)(ii) of such title is deemed to be a reference to
            both the Board and the Comptroller General;
                ``(3) the report required by paragraph (1) of section
            3554(e) of such title shall be submitted to the Comptroller
            General as well as the committees listed in such paragraph;
                ``(4) the report required by paragraph (2) of such section
            shall be submitted to the Comptroller General as well as
            Congress; and
                ``(5) section 3556 of such title shall not apply to the
            Board, but nothing in this subsection shall affect the right of
            an interested party to file a protest with the appropriate
            contracting officer.

        ``(d) Procedures.--The Board shall prescribe such procedures as may
    be necessary for the expeditious decision of appeals and protests under
    subsections (b) and (c).
        ``(e) Commencement.--The Board shall begin to function as soon as it
    has been established and has prescribed procedures under subsection (d),
    but not later than January 1, 1999.

    [[Page 111 STAT. 2072]]

        ``(f) Transition.--The Board shall have jurisdiction under
    subsections (b) and (c) over any appeals and protests filed on or after
    the date on which the Board begins to function. Any appeals and protests
    filed before such date shall remain before the forum in which they were
    filed.
        ``(g) Other Functions.--The Board may perform functions similar to
    those described in this section for such other matters or activities of
    the Commission as the Commission may determine and in accordance with
    regulations prescribed by the Commission.''.

    SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

        Section 1342 (22 U.S.C. 3752) is amended--
                (1) by designating the text of the section as subsection
            (a); and
                (2) by adding at the end the following new subsections:

        ``(b) The Commission may provide office space, equipment, supplies,
    personnel, and other in-kind services to the Panama Canal Authority on a
    nonreimbursable basis.
        ``(c) Any executive department or agency of the United States may,
    on a reimbursable basis, provide to the Panama Canal Authority
    materials, supplies, equipment, work, or services requested by the
    Panama Canal Authority, at such rates as may be agreed upon by that
    department or agency and the Panama Canal Authority.''.

    SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

        (a) Filing of Administrative Claims With Commission.--Sections
    1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772) are each amended
    in the last sentence by striking out ``within 2 years after'' and all
    that follows through ``of 1985,'' and inserting in lieu thereof ``within
    one year after the date of the injury or the date of the enactment of
    the Panama Canal Transition Facilitation Act of 1997,''.
        (b) Filing of Judicial Actions.--The penultimate sentence of section
    1416 (22 U.S.C. 3776) is amended--
                (1) by striking out ``one year'' the first place it appears
            and inserting in lieu thereof ``180 days''; and
                (2) by striking out ``claim, or'' and all that follows
            through ``of 1985,'' and inserting in lieu thereof ``claim or
            the date of the enactment of the Panama Canal Transition
            Facilitation Act of 1997,''.

    SEC. 3544. TOLLS FOR SMALL VESSELS.

        Section 1602(a) (22 U.S.C. 3792(a)) is amended--
                (1) in the first sentence, by striking out ``supply ships,
            and yachts'' and inserting in lieu thereof ``and supply ships'';
            and
                (2) by adding at the end the following new sentence: ``Tolls
            for small vessels (including yachts), as defined by the
            Commission, may be set at rates determined by the Commission
            without regard to the preceding provisions of this
            subsection.''.

    SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

        Section 5(a) of the Panama Canal Commission Compensation Fund Act of
    1988 (22 U.S.C. 3715c(a)) is amended by striking out ``Upon the
    termination of the Panama Canal Commission'' and inserting in lieu
    thereof ``By March 31, 1998''.

    [[Page 111 STAT. 2073]]

    SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

        Section 1102a (22 U.S.C. 3612a) is amended--
                (1) by redesignating subsection (g) as subsection (h); and
                (2) by inserting after subsection (f) the following new
            subsection:

        ``(g)(1) The Commission may appoint any United States citizen to
    have the general powers of a notary public to perform, on behalf of
    Commission employees and their dependents outside the United States, any
    notarial act that a notary public is required or authorized to perform
    within the United States. Unless an earlier expiration is provided by
    the terms of the appointment, any such appointment shall expire three
    months after the Canal Transfer Date.
        ``(2) Every notarial act performed by a person acting as a notary
    under paragraph (1) shall be as valid, and of like force and effect
    within the United States, as if executed by or before a duly authorized
    and competent notary public in the United States.
        ``(3) The signature of any person acting as a notary under paragraph
    (1), when it appears with the title of that person's office, is prima
    facie evidence that the signature is genuine, that the person holds the
    designated title, and that the person is authorized to perform a
    notarial act.''.

    SEC. 3547. COMMERCIAL SERVICES.

        Section 1102b (22 U.S.C. 3612b) is amended by adding at the end the
    following new subsection:
        ``(e) The Commission may conduct and promote commercial activities
    related to the management, operation, or maintenance of the Panama
    Canal. Any such commercial activity shall be carried out consistent with
    the Panama Canal Treaty of 1977 and related agreements.''.

    SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY
                FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION APPEALS.

        Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a)) are
    amended by striking out ``President'' and inserting in lieu thereof
    ``Commission''.

    SEC. 3549. ENHANCED PRINTING AUTHORITY.

        Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking out
    ``Section 501'' and inserting in lieu thereof ``Sections 501 through 517
    and 1101 through 1123''.

    SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Clerical Amendments.--The table of contents in section 1 is
    amended--
                (1) by striking out the item relating to section 1210 and
            inserting in lieu thereof the following:

    ``Sec. 1210. Air transportation.'';

                (2) by striking out the items relating to sections 1215,
            1219, and 1225;
                (3) by inserting after the item relating to section 1232 the
            following new item:

    ``Sec. 1233. Transition separation incentive payments.'';

            and

    [[Page 111 STAT. 2074]]

                (4) by inserting after the item relating to the heading of
            title III the following:

                            ``Chapter 1--Procurement

    ``Sec. 3101. Procurement system.
    ``Sec. 3102. Panama Canal Board of Contract Appeals.''.

        (b) Amendment To Reflect Prior Change in Compensation of
    Administrator.--Section 5315 of title 5, United States Code, is amended
    by striking out the following:
                ``Administrator of the Panama Canal Commission.''.

        (c) Amendments To Reflect Change in Travel and Transportation
    Expenses Authority.--(1) Section 5724(a)(3) of title 5, United States
    Code, is amended by striking out ``, the Commonwealth of Puerto Rico,''
    and all that follows through ``Panama Canal Act of 1979'' and inserting
    in lieu thereof ``or the Commonwealth of Puerto Rico''.
        (2) Section 5724a(j) of such title is amended--
                (A) by inserting ``and'' after ``Northern Mariana
            Islands,''; and
                (B) by striking out ``United States, and'' and all that
            follows through the period at the end and inserting in lieu
            thereof ``United States.''.

        (3) The amendments <<NOTE: 5 USC 5724 note.>>  made by this
    subsection shall take effect on January 1, 1999.

        (d) Miscellaneous Technical Amendments.--
                (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by striking
            out ``the Canal Zone Code'' and all that follows through ``other
            laws'' the second place it appears and inserting in lieu thereof
            ``laws of the United States and regulations issued pursuant to
            such laws''.
                (2)(A) The following provisions are each amended by striking
            out ``the effective date of this Act'' and inserting in lieu
            thereof ``October 1, 1979'': sections 3(b), 3(c), 1112(b), and
            1321(c) <<NOTE: 22 USC 3602, 3622, 3731.>> (1).
                (B) Section 1321(c)(2) is amended by striking out ``such
            effective date'' and inserting in lieu thereof ``October 1,
            1979''.
                (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A)) is
            amended by striking out ``the day before the effective date of
            this Act'' and inserting in lieu thereof ``September 30, 1979''.
                (3) Section 1102a(h), as redesignated by section 3546(1), is
            amended by striking out ``section 1102B'' and inserting in lieu
            thereof ``section 1102b''.
                (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is amended by
            striking out ``section 16 of the Act of August 1, 1956 (22
            U.S.C. 2680a),'' and inserting in lieu thereof ``section 207 of
            the Foreign Service Act of 1980 (22 U.S.C. 3927)''.
                (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is amended by
            striking out ``as last in effect before the effective date of
            section 3530 of the Panama Canal Act Amendments of 1996'' and
            inserting in lieu thereof ``as in effect on September 22,
            1996''.
                (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is amended by
            striking out ``retroactivity'' and inserting in lieu thereof
            ``retroactively''.
                (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended by
            striking out ``sections 1302(c)'' and inserting in lieu thereof
            ``sections 1302(b)''.

    [[Page 111 STAT. 2075]]

                      TITLE XXXVI--MARITIME ADMINISTRATION

    Sec. 3601. Authorization of appropriations for fiscal year 1998.
    Sec. 3602. Repeal of obsolete annual report requirement concerning
               relative cost of shipbuilding in the various coastal
               districts of the United States.
    Sec. 3603. Provisions relating to maritime security fleet program.
    Sec. 3604. Authority to utilize replacement vessels and capacity.
    Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
    Sec. 3606. Determination of gross tonnage for purposes of tank vessel
               double hull requirements.

    SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.

        Funds are hereby authorized to be appropriated for fiscal year 1998,
    to be available without fiscal year limitation if so provided in
    appropriation Acts, for the use of the Department of Transportation for
    the Maritime Administration as follows:
                (1) For expenses necessary for operations and training
            activities, $70,000,000.
                (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.), $39,000,000 of which--
                        (A) $35,000,000 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. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT CONCERNING
                RELATIVE COST OF SHIPBUILDING IN THE VARIOUS COASTAL
                DISTRICTS OF THE UNITED STATES.

        (a) Repeal.--Section 213 of the Merchant Marine Act, 1936 (46 U.S.C.
    App. 1123), is amended by striking out paragraph (c).
        (b) Conforming Amendments.--Such section is further
    amended--
                (1) by striking out ``on--'' in the matter preceding
            paragraph (a) and inserting in lieu thereof ``on the
            following:'';
                (2) by redesignating paragraphs (a) and (b) as paragraphs
            (1) and (2), respectively;
                (3) by striking out the semicolon at the end of each of
            those paragraphs and inserting in lieu thereof a period; and
                (4) by realigning those paragraphs so as to be indented 2
            ems from the left margin.

    SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.

        (a) Authority of Contractors To Operate Self-Propelled Tank Vessels
    in Noncontiguous Domestic Trades.--Section 656(b) of the Merchant Marine
    Act, 1936 (46 U.S.C. App. 1187e(b)) is amended by inserting ``(1)''
    after ``(b)'', and by adding at the end the following new paragraph:
        ``(2) Subsection (a) shall not apply to operation by a contractor of
    a self-propelled tank vessel in a noncontiguous domestic trade, or to
    ownership by a contractor of an interest in a self-propelled tank vessel
    that operates in a noncontiguous domestic trade.''.
        (b) Relief From Delay in Certain Operations Following
    Documentation.--Section 652(c) of the Merchant Marine Act, 1936

    [[Page 111 STAT. 2076]]

    (46 U.S.C. 1187a(c)) <<NOTE: 46 USC app. 1187a.>>  is amended by adding
    at the end the following: ``The restrictions of section 901(b)(1) of
    this Act concerning the building, rebuilding, or documentation of a
    vessel in a foreign country shall not apply to a vessel for any day the
    operator of that vessel is receiving payments under an operating
    agreement under this subtitle.''.

    SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.

        Section 653(d)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App.
    1187b(d)(1)) is amended to read as follows:
                ``(1) a contractor or other person that commits to make
            available a vessel or vessel capacity under the Emergency
            Preparedness Program or another primary sealift readiness
            program approved by the Secretary of Defense may, during the
            activation of that vessel or capacity under that program,
            operate or employ in foreign commerce a foreign-flag vessel or
            foreign-flag vessel capacity as a temporary replacement for the
            activated vessel or capacity; and''.

    SEC. 3605. 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 Federal Government in and to the
    vessel GOLDEN BEAR (United States official number 239932) to the Artship
    Foundation, located in Oakland, California (in this section referred to
    as the ``recipient''), for use as a multicultural center for the arts.
        (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.

    [[Page 111 STAT. 2077]]

    SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK VESSEL
                DOUBLE HULL REQUIREMENTS.

        Section 3703a of title 46, United States Code, is amended by adding
    at the end the following:
        ``(e)(1) For the purposes of this section and except as otherwise
    provided in paragraphs (2) and (3) of this subsection, the gross tonnage
    of a vessel shall be the gross tonnage that would have been recognized
    by the Secretary on July 1, 1997, as the tonnage measured under section
    14502 of this title, or as an alternate tonnage measured under section
    14302 of this title as prescribed by the Secretary under section 14104
    of this title.
        ``(2)(A) The Secretary may waive the application of paragraph (1) to
    a tank vessel if--
                ``(i) the owner of the tank vessel applies to the Secretary
            for the waiver before January 1, 1998;
                ``(ii) the Secretary determines that--
                        ``(I) the owner of the tank vessel has entered into
                    a binding agreement to alter the tank vessel in a
                    shipyard in the United States to reduce the gross
                    tonnage of the tank vessel by converting a portion of
                    the cargo tanks of the tank vessel into protectively
                    located segregated ballast tanks; and
                        ``(II) that conversion will result in a significant
                    reduction in the risk of a discharge of oil;
                ``(iii) at least 60 days before the date of the issuance of
            the waiver, the Secretary--
                        ``(I) publishes notice that the Secretary has
                    received the application and made the determinations
                    required by clause (ii), including a description of the
                    agreement entered into pursuant to clause (ii)(I); and
                        ``(II) provides an opportunity for submission of
                    comments regarding the application; and
                ``(iv) the alterations referred to in clause (ii)(I) are
            completed before the later of--
                        ``(I) the date by which the first special survey of
                    the tank vessel is required to be completed after the
                    date of the enactment of the National Defense
                    Authorization Act for Fiscal Year 1998; or
                        ``(II) July 1, 1999.

        ``(B) A waiver under subparagraph (A) shall not be effective after
    the expiration of the 3-year period beginning on the first date on which
    the tank vessel would have been prohibited by subsection (c) from
    operating if the alterations referred to in subparagraph (A)(ii)(I) were
    not made.

    [[Page 111 STAT. 2078]]

        ``(3) This subsection does not apply to a tank vessel that, before
    July 1, 1997, had undergone, or was the subject of a contract for,
    alterations that reduce the gross tonnage of the tank vessel, as shown
    by reliable evidence acceptable to the Secretary.''.

        Approved November 18, 1997.

    LEGISLATIVE HISTORY--H.R. 1119 (S. 924) (S. 936):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 105-132 (Comm. on National Security) and 105-340
    (Comm. of Conference).
    SENATE REPORTS: No. 105-29 accompanying S. 924 and S. 936 (Comm. on
    Armed Services).
    CONGRESSIONAL RECORD, Vol. 143 (1997):
                June 19, 20, 23-25, considered and passed House.
                July 11, considered and passed Senate, amended.
                Oct. 28, House agreed to conference report.
                Nov. 5, Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
                Nov. 18, Presidential statement.

                                      <all>