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H.R. 3230 (104th): National Defense Authorization Act for Fiscal Year 1997


The text of the bill below is as of Sep 10, 1996 (Passed Congress).


H.R.3230

One Hundred Fourth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, one thousand nine hundred and ninety-six

An Act

To authorize appropriations for fiscal year 1997 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘National Defense Authorization Act for Fiscal Year 1997’.

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

    (a) DIVISIONS- This Act is organized into three divisions as follows:

      (1) Division A--Department of Defense Authorizations.

      (2) Division B--Military Construction Authorizations.

      (3) Division C--Department of Energy National Security Authorizations and Other Authorizations.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Reserve components.

Sec. 106. Defense Inspector General.

Sec. 107. Chemical Demilitarization Program.

Sec. 108. Defense health programs.

Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters.

Sec. 112. Multiyear procurement authority for Army programs.

Sec. 113. Bradley TOW 2 Test Program sets.

Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.

Sec. 122. Arleigh Burke class destroyer program.

Sec. 123. EA-6B aircraft reactive jammer program.

Sec. 124. T-39N trainer aircraft for the Navy.

Sec. 125. Penguin missile program.

Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.

Sec. 132. Modification to multiyear procurement authority for C-17 aircraft program.

Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the Reserve components.

Sec. 142. Destruction of existing stockpile of lethal chemical agents and munitions.

Sec. 143. Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

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

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Sec. 203. Dual-use technology programs.

Sec. 204. Defense Special Weapons Agency.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Space-Based Infrared System program.

Sec. 213. Clementine 2 micro-satellite development program.

Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.

Sec. 215. Live-fire survivability testing of F-22 aircraft.

Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance aircraft.

Sec. 217. Cost analysis of F-22 aircraft program.

Sec. 218. F-22 aircraft program reports.

Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.

Sec. 220. Joint Advanced Strike Technology (JAST) program.

Sec. 221. Unmanned aerial vehicles.

Sec. 222. High altitude endurance unmanned aerial reconnaissance system.

Sec. 223. Cyclone class patrol craft self-defense.

Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic Guided Missile (EFOG-M) system.

Sec. 225. Hydra-70 rocket product improvement program.

Sec. 226. Federally funded research and development centers.

Sec. 227. Demilitarization of conventional munitions, rockets, and explosives.

Sec. 228. Research activities of the Defense Advanced Research Projects Agency relating to chemical and biological warfare defense technology.

Sec. 229. Certification of capability of United States to prevent illegal importation of nuclear, biological, or chemical weapons.

Sec. 230. Nonlethal weapons and technologies programs.

Sec. 231. Counterproliferation support program.

Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 1997.

Sec. 242. Certification of capability of United States to defend against single ballistic missile.

Sec. 243. Report on ballistic missile defense and proliferation.

Sec. 244. Revision to annual report on ballistic missile defense program.

Sec. 245. Report on Air Force National Missile Defense Plan.

Sec. 246. Capability of National Missile Defense system.

Sec. 247. Actions to limit adverse effects on private sector employment of establishment of National Missile Defense Joint Program Office.

Sec. 248. ABM Treaty defined.

Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.

Sec. 262. Report relating to Small Business Innovation Research Program.

Sec. 263. Amendment to University Research Initiative Support program.

Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive Research.

Sec. 265. Elimination of report on the use of competitive procedures for the award of certain contracts to colleges and universities.

Sec. 266. Pilot program for transfer of defense technology information to private industry.

Sec. 267. Research under transactions other than contracts and grants.

Sec. 268. Desalting technologies.

Sec. 269. Evaluation of digital video network equipment used in Olympic games.

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

Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.

Sec. 282. National Oceanographic Partnership Program.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

Sec. 304. Transfer from National Defense Stockpile Transaction Fund.

Sec. 305. Civil Air Patrol Corporation.

Sec. 306. Availability of additional funds for antiterrorism activities.

Sec. 307. Nonlethal weapons capabilities.

Sec. 308. SR-71 contingency reconnaissance force.

Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards to engage in defense-related production and services.

Sec. 312. Test programs for modernization-through-spares.

Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on contractor reimbursement costs for response actions.

Sec. 322. Establishment of separate environmental restoration accounts for each military department.

Sec. 323. Payment of stipulated penalties assessed under CERCLA.

Sec. 324. Shipboard solid waste control.

Sec. 325. Authority to develop and implement land use plans for defense environmental restoration program.

Sec. 326. Pilot program to test alternative technology for limiting air emissions during shipyard blasting and coating operations.

Sec. 327. Agreements for services of other agencies in support of environmental technology certification.

Sec. 328. Repeal of redundant notification and consultation requirements regarding remedial investigations and feasibility studies at certain installations to be closed under the base closure laws.

Sec. 329. Authority for agreements with Indian tribes for services under environmental restoration program.

Sec. 330. Authority to withhold listing of Federal facilities on National Priorities List.

Sec. 331. Clarification of meaning of uncontaminated property for purposes of transfer by the United States.

Sec. 332. Conservation and cultural activities.

Sec. 333. Navy program to monitor ecological effects of organotin.

Sec. 334. Authority to transfer contaminated Federal property before completion of required response actions.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and services to promote efficient operation and management of exchanges and morale, welfare, and recreation activities.

Sec. 342. Noncompetitive procurement of brand-name commercial items for resale in commissary stores.

Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of printing and duplication services.

Sec. 352. Reporting requirements under demonstration project for purchase of fire, security, police, public works, and utility services from local government agencies.

Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting functions.

Sec. 362. Training of members of the uniformed services at non-Government facilities.

Sec. 363. Requirement for preparation of plan for improved operation of working-capital funds and effect of failure to produce an approved plan.

Sec. 364. Increase in capital asset threshold under Defense Business Operations Fund.

Sec. 365. Expansion of authority to donate unusable food.

Sec. 366. Assistance to committees involved in inauguration of the President.

Sec. 367. Department of Defense support for sporting events.

Sec. 368. Storage of motor vehicle in lieu of transportation.

Sec. 369. Security protections at Department of Defense facilities in National Capital Region.

Sec. 370. Administration of midshipmen’s store and other naval academy support activities as nonappropriated fund instrumentality.

Sec. 371. Reimbursement under agreement for instruction of civilian students at Foreign Language Institute of the Defense Language Institute.

Sec. 372. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

Sec. 373. Renovation of building for Defense Finance and Accounting Service Center, Fort Benjamin Harrison, Indiana.

Sec. 374. Food donation pilot program at service academies.

Sec. 375. Authority of Air National Guard to provide certain services at Lincoln Municipal Airport, Lincoln, Nebraska.

Sec. 376. Technical amendment regarding Impact Aid program.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Permanent end strength levels to support two major regional contingencies.

Sec. 403. Authorized strengths for commissioned officers on active duty in grades of major, lieutenant colonel, and colonel and Navy grades of lieutenant commander, commander, and captain.

Sec. 404. Extension of requirement for recommendations regarding appointments to joint 4-star officer positions.

Sec. 405. Increase in authorized number of general officers on active duty in the Marine Corps.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for reserves on active duty in support of the Reserves.

Sec. 413. End strengths for military technicians.

Sec. 414. Assurance of continued assignment of military personnel to serve in Selective Service System.

Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.

Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force Nurse Corps.

Sec. 503. Navy spot promotion authority for certain lieutenants with critical skills.

Sec. 504. Time for award of degrees by unaccredited educational institutions for graduates to be considered educationally qualified for appointment as Reserve officers in grade O-3.

Sec. 505. Exception to baccalaureate degree requirement for appointment in the Naval Reserve in grades above O-2.

Sec. 506. Chief warrant officer promotions.

Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous membership program.

Sec. 508. Continuation on active status for certain Reserve officers of the Air Force.

Sec. 509. Reports on response to recommendations concerning improvements to Department of Defense joint manpower process.

Sec. 510. Frequency of reports to Congress on joint officer management policies.

Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 years of service.

Sec. 512. Authority to extend period for entry on active duty under the delayed entry program.

Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.

Sec. 522. Clarification of definition of active status.

Sec. 523. Limitation of requirement for physical examinations of members of National Guard called into Federal service.

Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training creditable toward Reserve retirement.

Sec. 532. Retirement of Reserve enlisted members who qualify for active duty retirement after administrative reduction in enlisted grade.

Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary.

Sec. 534. Eligibility of Reserves for disability retirement.

Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the Reserves.

Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance program.

Sec. 543. Reserve credit for participation in Health Professions Scholarship and Financial Assistance Program.

Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions.

Sec. 545. Report on number of advisers in active component support of Reserves pilot program.

Sec. 546. Sense of Congress and report regarding reemployment rights for mobilized Reservists employed in foreign countries.

Sec. 547. Payment of premiums under Mobilization Income Insurance Program.

Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers’ Training Corps program.

Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termination of senior ROTC units pending report on ROTC.

Sec. 553. Pilot program to test expansion of ROTC program to include graduate students.

Sec. 554. Demonstration project for instruction and support of Army ROTC units by members of the Army Reserve and National Guard.

Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in the Senior Reserve Officers’ Training Corps and the service academies.

Sec. 556. Expansion of eligibility for education benefits to include certain Reserve Officers’ Training Corps (ROTC) participants.

Sec. 557. Comptroller General report on cost and policy implications of permitting up to five percent of service academy graduates to be assigned directly to Reserve duty upon graduation.

Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African American soldiers who served during World War II.

Sec. 562. Waiver of time limitations for award of certain decorations to specified persons.

Sec. 563. Replacement of certain American Theater Campaign Ribbons.

Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.

Sec. 572. Disability coverage for members granted excess leave for educational or emergency purposes.

Sec. 573. Clarification of authority of a Reserve judge advocate to act as a military notary public when not in a duty status.

Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not in Federal service.

Sec. 575. Authority to expand law enforcement placement program to include firefighters.

Sec. 576. Improvements to program to assist separated military and civilian personnel to obtain employment as teachers or teachers’ aides.

Sec. 577. Retirement at grade to which selected for promotion when a physical disability is found at any physical examination.

Sec. 578. Revisions to missing persons authorities.

Subtitle I--Commissioned Corps of the Public Health Service

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

Sec. 582. Exception to strength limitations for Public Health Service officers assigned to the Department of Defense.

Sec. 583. Authority to provide legal assistance to Public Health Service officers.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.

Sec. 602. Adjustment of rate of cadet and midshipman pay.

Sec. 603. Pay of senior noncommissioned officers while hospitalized.

Sec. 604. Availability of basic allowance for quarters for certain members without dependents who serve on sea duty.

Sec. 605. Uniform applicability of discretion to deny an election not to occupy Government quarters.

Sec. 606. Establishment of minimum monthly amount of variable housing allowance for high housing cost areas.

Sec. 607. Family separation allowance for members separated by military orders from spouses who are members.

Sec. 608. Waiver of time limitations for claim for pay and allowances.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay authorities for reserve forces.

Sec. 612. One-year extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. One-year extension of authorities relating to payment of other bonuses and special pays.

Sec. 614. Special pay for certain Public Health Service officers.

Sec. 615. Special incentives to recruit and retain dental officers.

Sec. 616. Foreign language proficiency pay for Public Health Service and National Oceanic and Atmospheric Administration officers.

Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at Government expense.

Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic allowance for quarters.

Sec. 623. Allowance for travel performed in connection with leave between consecutive overseas tours.

Sec. 624. Funding for transportation of household effects of Public Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment for fiscal year 1998.

Sec. 632. Clarification of initial computation of retiree COLAs after retirement.

Sec. 633. Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution.

Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.

Sec. 635. Increases in Survivor Benefit Plan contributions to be effective concurrently with payment of retired pay cost-of-living increases.

Sec. 636. Amendments to the Uniformed Services Former Spouses’ Protection Act.

Sec. 637. Prevention of circumvention of court order by waiver of retired pay to enhance civil service retirement annuity.

Sec. 638. Administration of benefits for so-called minimum income widows.

Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer pay.

Sec. 652. Reimbursement for adoption expenses incurred in adoptions through private placements.

Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from certain separation pay.

Sec. 654. Technical correction clarifying limitation on furnishing clothing or allowances for enlisted National Guard technicians.

Sec. 655. Technical correction to prior authority for payment of back pay to certain persons.

Sec. 656. Compensation for persons awarded prisoner of war medal who did not previously receive compensation as a prisoner of war.

Sec. 657. Payments to certain persons captured and interned by North Vietnam.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

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

Sec. 702. Implementation of requirement for Selected Reserve dental insurance plan.

Sec. 703. Dental insurance plan for military retirees and unremarried surviving spouses and certain other dependents of military retirees.

Sec. 704. Plan for health care coverage for children with medical conditions caused by parental exposure to chemical munitions while serving as members of the Armed Forces.

Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.

Sec. 712. Improved information exchange between military treatment facilities and TRICARE program contractors.

Sec. 713. Plans for medicare subvention demonstration programs.

Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.

Sec. 722. Inclusion of designated providers in uniformed services health care delivery system.

Sec. 723. Provision of uniform benefit by designated providers.

Sec. 724. Enrollment of covered beneficiaries.

Sec. 725. Application of CHAMPUS payment rules.

Sec. 726. Payments for services.

Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically necessary treatment in connection with certain clinical trials.

Sec. 732. Exception to maximum allowable payments to individual health-care providers under CHAMPUS.

Sec. 733. Codification of annual authority to credit CHAMPUS refunds to current year appropriation.

Sec. 734. Exceptions to requirements regarding obtaining nonavailability-of-health-care statements.

Sec. 735. Enhancement of third-party collection and secondary payer authorities under CHAMPUS.

Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed Forces Health Professions Scholarship and Financial Assistance program and Uniformed Services University of the Health Sciences.

Sec. 742. External peer review for defense health program extramural medical research involving human subjects.

Sec. 743. Independent research regarding Gulf War syndrome.

Sec. 744. Comptroller General review of health care activities of Department of Defense relating to Gulf War illnesses.

Sec. 745. Report regarding specialized treatment facility program.

Sec. 746. Study of means of ensuring uniformity in provision of medical and dental care for members of Reserve components.

Sec. 747. Sense of Congress regarding tax treatment of Armed Forces Health Professions Scholarship and Financial Assistance program.

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

Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.

Sec. 802. Extension of pilot mentor-protege program.

Sec. 803. Authority to waive certain requirements for defense acquisition pilot programs.

Sec. 804. Modification of authority to carry out certain prototype projects.

Sec. 805. Increase in threshold amounts for major systems.

Sec. 806. Revisions in information required to be included in selected acquisition reports.

Sec. 807. Increase in simplified acquisition threshold for humanitarian or peacekeeping operations.

Sec. 808. Expansion of audit reciprocity among Federal agencies to include post-award audits.

Sec. 809. Excessive compensation of certain contractor personnel.

Sec. 810. Exception to prohibition on procurement of foreign goods.

Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom of Information Act.

Sec. 822. Amendments relating to reports on procurement regulatory activity.

Sec. 823. Amendment of multiyear limitation on contracts for inspection, maintenance, and repair.

Sec. 824. Streamlined notice requirements to contractors and employees regarding termination or substantial reduction in contracts under major defense programs.

Sec. 825. Repeal of notice requirements for substantially or seriously affected parties in downsizing efforts.

Sec. 826. Study of effectiveness of defense mergers.

Sec. 827. Annual report relating to Buy American Act.

Sec. 828. Foreign environmental technology.

Sec. 829. Assessment of national defense technology and industrial base and dependency of base on supplies available only from foreign countries.

Sec. 830. Expansion of report on implementation of automated information systems to include additional matters regarding information resources management.

Sec. 831. Year 2000 software conversion.

Sec. 832. Procurement from firms in industrial base for production of small arms.

Sec. 833. Cable television franchise agreements.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory positions in Office of the Secretary of Defense.

Sec. 902. Additional required reduction in defense acquisition workforce.

Sec. 903. Reduction of personnel assigned to Office of the Secretary of Defense.

Sec. 904. Report on military department headquarters staffs.

Sec. 905. Matters to be considered in next assessment of current missions, responsibilities, and force structure of the unified combatant commands.

Sec. 906. Transfer of authority to control transportation systems in time of war.

Sec. 907. Codification of requirements relating to continued operation of the Uniformed Services University of the Health Sciences.

Sec. 908. Joint Requirements Oversight Council.

Sec. 909. Membership of the Ammunition Storage Board.

Sec. 910. Removal of Secretary of the Army from membership on the Foreign Trade Zone Board.

Sec. 911. Composition of aircraft accident investigation boards.

Sec. 912. Mission of the White House Communications Agency.

Subtitle B--Force Structure Review

Sec. 921. Short title.

Sec. 922. Findings.

Sec. 923. Quadrennial Defense Review.

Sec. 924. National Defense Panel.

Sec. 925. Postponement of deadlines.

Sec. 926. Definitions.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of classified annex.

Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense appropriations.

Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal year 1996.

Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammunition accounts.

Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance Program.

Sec. 1007. Limitation on use of Department of Defense funds transferred to the Coast Guard.

Sec. 1008. Fisher House Trust Fund for the Department of the Navy.

Sec. 1009. Designation and liability of disbursing and certifying officials for the Coast Guard.

Sec. 1010. Authority to suspend or terminate collection actions against deceased members of the Coast Guard.

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

Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of contracts for phased maintenance of AE class ships.

Sec. 1022. Funding for second and third maritime prepositioning ships out of National Defense Sealift Fund.

Sec. 1023. Transfer of certain obsolete tugboats of the Navy.

Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.

Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug activities of Mexico.

Sec. 1032. Availability of funds for certain drug interdiction and counter-drug activities.

Sec. 1033. Transfer of excess personal property to support law enforcement activities.

Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufacture controlled substances.

Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced Southern Watch.

Sec. 1042. Annual report on emerging operational concepts.

Sec. 1043. Report on Department of Defense military child care programs.

Sec. 1044. Report on Department of Defense military youth programs.

Sec. 1045. Quarterly reports regarding coproduction agreements.

Sec. 1046. Report on witness interview procedures for Department of Defense criminal investigations.

Sec. 1047. Report on military readiness requirements of the Armed Forces.

Sec. 1048. Report on NATO enlargement.

Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.

Sec. 1052. Acceptance of uncompensated services.

Sec. 1053. Disposal of tract of real property in the District of Columbia.

Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure against strategic attack.

Sec. 1062. Information systems security program.

Sec. 1063. Authority to accept services from foreign governments and international organizations for defense purposes.

Sec. 1064. Prohibition on collection and release of detailed satellite imagery relating to Israel.

Sec. 1065. George C. Marshall European Center for Strategic Security Studies.

Sec. 1066. Authority to award to civilian participants in the defense of Pearl Harbor the Congressional Medal previously authorized only for military participants in the defense of Pearl Harbor.

Sec. 1067. Assimilative crimes authority for traffic offenses on military installations.

Sec. 1068. Uniform Code of Military Justice amendments.

Sec. 1069. Punishment of interstate stalking.

Sec. 1070. Participation of members, dependents, and other persons in crime prevention efforts at installations.

Sec. 1071. Display of State flags at installations and facilities of the Department of Defense.

Sec. 1072. Treatment of excess operational support airlift aircraft.

Sec. 1073. Correction to statutory references to certain Department of Defense organizations.

Sec. 1074. Technical and clerical amendments.

Sec. 1075. Modification to third-party liability to United States for tortious infliction of injury or disease on members of the uniformed services.

Sec. 1076. Chemical Stockpile Emergency Preparedness Program.

Sec. 1077. Exemption from requirements applicable to savings associations for certain savings institutions serving military personnel.

Sec. 1078. Improvements to National Security Education Program.

Sec. 1079. Aviation and vessel war risk insurance.

Sec. 1080. Designation of memorial as National D-Day Memorial.

Sec. 1081. Sense of Congress regarding semiconductor trade agreement between United States and Japan.

Sec. 1082. Agreements for exchange of defense personnel between the United States and foreign countries.

Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.

Sec. 1084. Defense burdensharing.

TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.

Sec. 1102. Findings.

Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation of certain intelligence officials.

Subtitle A--Establishment of Agency

Sec. 1111. Establishment.

Sec. 1112. Missions and authority.

Sec. 1113. Transfers of personnel and assets.

Sec. 1114. Compatibility with authority under the National Security Act of 1947.

Sec. 1115. Creditable civilian service for career conditional employees of the Defense Mapping Agency.

Sec. 1116. Saving provisions.

Sec. 1117. Definitions.

Sec. 1118. Authorization of appropriations.

Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.

Sec. 1122. Reference amendments.

Sec. 1123. Headings and clerical amendments.

Sec. 1124. Effective date.

TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.

Sec. 1202. Purpose.

Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.

Sec. 1212. Reserve component chiefs.

Sec. 1213. Review of active duty and Reserve general and flag officer authorizations.

Sec. 1214. Guard and Reserve technicians.

Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and Reserve ability to respond to emergencies.

Sec. 1232. Report to Congress concerning tax incentives for employers of members of Reserve components.

Sec. 1233. Report to Congress concerning income insurance program for activated Reservists.

Sec. 1234. Report to Congress concerning small business loans for members released from Reserve service during contingency operations.

Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses.

Sec. 1252. Authority to pay transient housing charges for members performing active duty for training.

Sec. 1253. Sense of Congress concerning quarters allowance during service on active duty for training.

Sec. 1254. Sense of Congress concerning military leave policy.

Sec. 1255. Reserve Forces Policy Board.

Sec. 1256. Report on parity of benefits for active duty service and Reserve service.

Sec. 1257. Information on proposed funding for the Guard and Reserve components in future-years defense programs.

TITLE XIII--ARMS CONTROL AND RELATED MATTERS

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

Sec. 1301. Extension of counterproliferation authorities.

Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear delivery systems.

Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities.

Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic assistance for clearance of landmines.

Sec. 1305. Report on military capabilities of People’s Republic of China.

Sec. 1306. Presidential report regarding weapons proliferation and policies of the People’s Republic of China.

Sec. 1307. United States-People’s Republic of China Joint Defense Conversion Commission.

Sec. 1308. Sense of Congress concerning export controls.

Sec. 1309. Counterproliferation Program Review Committee.

Sec. 1310. Sense of Congress concerning assisting other countries to improve security of fissile material.

Sec. 1311. Review by Director of Central Intelligence of National Intelligence Estimate 95-19.

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

Sec. 1321. Establishment of Commission.

Sec. 1322. Duties of Commission.

Sec. 1323. Report.

Sec. 1324. Powers.

Sec. 1325. Commission procedures.

Sec. 1326. Personnel matters.

Sec. 1327. Miscellaneous administrative provisions.

Sec. 1328. Funding.

Sec. 1329. Termination of the Commission.

TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.

Sec. 1402. Findings.

Sec. 1403. Definitions.

Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass destruction.

Sec. 1412. Emergency response assistance program.

Sec. 1413. Nuclear, chemical, and biological emergency response.

Sec. 1414. Chemical-biological emergency response team.

Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological, chemical, and biological weapons.

Sec. 1416. Military assistance to civilian law enforcement officials in emergency situations involving biological or chemical weapons.

Sec. 1417. Rapid response information system.

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

Sec. 1421. Procurement of detection equipment United States border security.

Sec. 1422. Extension of coverage of International Emergency Economic Powers Act.

Sec. 1423. Sense of Congress concerning criminal penalties.

Sec. 1424. International border security.

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

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

Sec. 1432. Elimination of plutonium production.

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

Sec. 1441. National Coordinator on Nonproliferation.

Sec. 1442. National Security Council Committee on Nonproliferation.

Sec. 1443. Comprehensive preparedness program.

Sec. 1444. Termination.

Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.

Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs.

Sec. 1453. Sense of Congress concerning assistance to states of former Soviet Union.

Sec. 1454. Purchase of low-enriched uranium derived from Russian highly enriched uranium.

Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of fissile materials at risk of theft.

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

Sec. 1501. Specification of Cooperative Threat Reduction programs.

Sec. 1502. Fiscal year 1997 funding allocations.

Sec. 1503. Prohibition on use of funds for specified purposes.

Sec. 1504. Limitation on use of funds until specified reports are submitted.

Sec. 1505. Availability of funds.

TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

Sec. 1601. Modification of requirement for conversion of military positions to civilian positions.

Sec. 1602. Retention of civilian employee positions at military training bases transferred to National Guard.

Sec. 1603. Clarification of applicability of certain management constraints on major range and test facility base structure.

Sec. 1604. Travel expenses and health care for civilian employees of the Department of Defense abroad.

Sec. 1605. Travel, transportation, and relocation allowances for certain former nonappropriated fund employees.

Sec. 1606. Employment and salary practices applicable to Department of Defense overseas teachers.

Sec. 1607. Employment and compensation of civilian faculty members at certain Department of Defense schools.

Sec. 1608. Reimbursement of Department of Defense domestic dependent school board members for certain expenses.

Sec. 1609. Modification of authority for civilian employees of Department of Defense to participate voluntarily in reductions in force.

Sec. 1610. Wage-board compensatory time off.

Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer of employee from installation being closed or realigned.

Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive pay by former Department of Defense employees reemployed by the Government without pay.

Sec. 1613. Simplification of rules relating to the observance of certain holidays.

Sec. 1614. Revision of certain travel management authorities.

Sec. 1615. Failure to comply with veterans’ preference requirements to be treated as a prohibited personnel practice.

Sec. 1616. Pilot programs for defense employees converted to contractor employees due to privatization at closed military installations.

Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.

Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming amendments.

Sec. 1634. Other personnel management authorities.

Sec. 1635. Effective date.

TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.

Sec. 1712. Temporary quarters subsistence expenses allowance.

Sec. 1713. Modification of residence transaction expenses allowance.

Sec. 1714. Authority to pay for property management services.

Sec. 1715. Authority to transport a privately owned motor vehicle within the continental United States.

Sec. 1716. Authority to pay limited relocation allowances to an employee who is performing an extended assignment.

Sec. 1717. Authority to pay a home marketing incentive.

Sec. 1718. Revision and reenactment of additional provisions relating to relocation expenses.

Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification requirement.

Sec. 1722. Transfer of authority to prescribe regulations.

Sec. 1723. Conforming and clerical amendments.

Sec. 1724. Assessment of cost savings.

Sec. 1725. Effective date and issuance of regulations.

TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.

Sec. 1802. Powers.

Sec. 1803. Purposes.

Sec. 1804. Service of process.

Sec. 1805. Membership.

Sec. 1806. Board of directors.

Sec. 1807. Officers.

Sec. 1808. Restrictions.

Sec. 1809. Liability.

Sec. 1810. Maintenance and inspection of books and records.

Sec. 1811. Audit of financial transactions.

Sec. 1812. Annual report.

Sec. 1813. Reservation of right to alter, amend, or repeal charter.

Sec. 1814. Tax-exempt status required as condition of charter.

Sec. 1815. Termination.

Sec. 1816. Definition of State.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

Sec. 2105. Land acquisition, National Ground Intelligence Center, Charlottesville, Virginia.

TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Beach replenishment, Naval Air Station, North Island, California.

TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition projects.

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family housing units.

Sec. 2304. Authorization of appropriations, Air Force.

Sec. 2305. Elimination of authority to carry out fiscal year 1995 project, Spangdahlem Air Force Base, Germany.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Military housing planning and design.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Military housing improvement program.

Sec. 2405. Energy conservation projects.

Sec. 2406. Authorization of appropriations, Defense Agencies.

Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal year 1996 Defense Agencies military construction, land acquisition, and military family housing functions.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.

Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

Sec. 2602. Authorization and funding for construction and improvement of Naval Reserve Centers.

Sec. 2603. Upgrade Air National Guard facilities, Bangor International Airport, Maine.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be specified by law.

Sec. 2702. Extension of authorizations of certain fiscal year 1994 projects.

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

Sec. 2704. Extension of authorizations of certain fiscal year 1992 projects.

Sec. 2705. Effective date.

TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor construction projects.

Sec. 2802. Redesignation of North Atlantic Treaty Organization Infrastructure program.

Sec. 2803. Improvements to family housing units.

Sec. 2804. Availability of funds for planning, execution, and administration of contracts for family housing and unaccompanied housing.

Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment transfers under 1988 base closure law.

Sec. 2812. Contracting for certain services at facilities remaining on closed installations.

Sec. 2813. Authority to compensate owners of manufactured housing.

Sec. 2814. Additional purpose for which adjustment and diversification assistance is authorized.

Sec. 2815. Payment of stipulated penalties assessed under CERCLA in connection with Loring Air Force Base, Maine.

Sec. 2816. Plan for utilization, reutilization, or disposal of Mississippi Army Ammunition Plant.

Subtitle C--Land Conveyances

Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, Virginia.

Sec. 2822. Land transfer, Fort Sill, Oklahoma.

Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.

Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South Carolina.

Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.

Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, Manchester, New Hampshire.

Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.

Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.

Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia.

Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial Reserve Plant, Calverton, New York.

Sec. 2834. Land conveyance, former naval reserve facility, Lewes, Delaware.

Sec. 2835. Modification of land conveyance authority, Naval Reserve Center, Seattle, Washington.

Sec. 2836. Release of condition on reconveyance of transferred land, Guam.

Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air Station, Meridian, Mississippi.

Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, South Dakota.

Sec. 2842. Conveyance of primate research complex and Air Force-owned chimpanzees, Holloman Air Force Base, New Mexico.

Part IV--Other Conveyances

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

Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, North Dakota.

Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.

Sec. 2854. Modification of boundaries of White Sands National Monument and White Sands Missile Range.

Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.

Sec. 2862. Authority to enter into cooperative agreements for the management of cultural resources on military installations.

Sec. 2863. Demonstration project for installation and operation of electric power distribution system at Youngstown Air Reserve Station, Ohio.

Sec. 2864. Renovation of the Pentagon reservation.

Sec. 2865. Plan for repairs and stabilization of the historic district at the Forest Glen Annex of Walter Reed Medical Center, Maryland.

Sec. 2866. Naming of range at Camp Shelby, Mississippi.

Sec. 2867. Designation of Michael O’Callaghan military hospital.

Sec. 2868. Naming of building at the Uniformed Services University of the Health Sciences.

TITLE XXIX--MILITARY LAND WITHDRAWALS

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

Sec. 2901. Short title.

Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military Reser-vation.

Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver Site.

Sec. 2904. Maps and legal descriptions.

Sec. 2905. Management of withdrawn lands.

Sec. 2906. Management of withdrawn and acquired mineral resources.

Sec. 2907. Hunting, fishing, and trapping.

Sec. 2908. Termination of withdrawal and reservation.

Sec. 2909. Determination of presence of contamination and effect of contamination.

Sec. 2910. Delegation.

Sec. 2911. Hold harmless.

Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.

Sec. 2913. Authorization of appropriations.

Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.

Sec. 2922. Withdrawal and reservation of lands for El Centro.

Sec. 2923. Maps and legal descriptions.

Sec. 2924. Management of withdrawn lands.

Sec. 2925. Duration of withdrawal and reservation.

Sec. 2926. Continuation of ongoing decontamination activities.

Sec. 2927. Requirements for extension.

Sec. 2928. Early relinquishment of withdrawal.

Sec. 2929. Delegation of authority.

Sec. 2930. Hunting, fishing, and trapping.

Sec. 2931. Hold harmless.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.

Sec. 3102. Environmental restoration and waste management.

Sec. 3103. Defense fixed asset acquisition/privatization.

Sec. 3104. Other defense activities.

Sec. 3105. Defense nuclear waste disposal.

Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

Sec. 3126. Authority for emergency planning, design, and construction activities.

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

Sec. 3128. Availability of funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.

Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.

Sec. 3133. Tritium production.

Sec. 3134. Modernization and consolidation of tritium recycling facilities.

Sec. 3135. Production of high explosives.

Sec. 3136. Limitation on use of funds for certain research and development purposes.

Sec. 3137. Prohibition on funding nuclear weapons activities with People’s Republic of China.

Sec. 3138. International cooperative stockpile stewardship programs.

Sec. 3139. Temporary authority relating to transfers of defense environmental management funds.

Sec. 3140. Management structure for nuclear weapons production facilities and nuclear weapons laboratories.

Sec. 3141. Accelerated schedule for isolating high-level nuclear waste at the defense waste processing facility, Savannah River Site.

Sec. 3142. Processing and treatment of high-level nuclear waste and spent nuclear fuel rods.

Sec. 3143. Projects to accelerate closure activities at defense nuclear facilities.

Sec. 3144. Payment of costs of operation and maintenance of infrastructure at Nevada Test Site.

Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.

Sec. 3152. Amendments relating to baseline environmental management reports.

Sec. 3153. Requirement to develop future use plans for environmental management program.

Sec. 3154. Report on Department of Energy liability at Department superfund sites.

Sec. 3155. Requirement for annual five-year budget for the national security programs of the Department of Energy.

Sec. 3156. Requirements for Department of Energy weapons activities budgets for fiscal years after fiscal year 1997.

Sec. 3157. Repeal of requirement relating to accounting procedures for Department of Energy funds.

Sec. 3158. Update of report on nuclear test readiness postures.

Sec. 3159. Reports on critical difficulties at nuclear weapons laboratories and nuclear weapons production plants.

Sec. 3160. Extension of applicability of notice-and-wait requirement regarding proposed cooperation agreements.

Sec. 3161. Sense of Senate relating to redesignation of defense environmental restoration and waste management program.

Sec. 3162. Commission on maintaining United States nuclear weapons expertise.

Sec. 3163. Sense of Congress regarding reliability and safety of remaining nuclear forces.

Sec. 3164. Study on worker protection at the Mound facility.

Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement Project, Livermore, California.

Sec. 3166. Fellowship program for development of skills critical to Department of Energy nuclear weapons complex.

Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.

Sec. 3172. Applicability.

Sec. 3173. Site manager.

Sec. 3174. Department of Energy orders.

Sec. 3175. Deployment of technology for remediation of defense nuclear waste.

Sec. 3176. Performance-based contracting.

Sec. 3177. Designation of covered facilities as environmental cleanup demonstration areas.

Sec. 3178. Definitions.

Sec. 3179. Termination.

Sec. 3180. Report.

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

Sec. 3181. Short title.

Sec. 3182. Definitions.

Sec. 3183. Management plan.

Sec. 3184. Repeal of test phase and retrieval plans.

Sec. 3185. Test phase activities.

Sec. 3186. Disposal operations.

Sec. 3187. Environmental Protection Agency disposal regulations.

Sec. 3188. Compliance with environmental laws and regulations.

Sec. 3189. Sense of Congress on commencement of emplacement of transuranic waste.

Sec. 3190. Decommissioning of WIPP.

Sec. 3191. Authorizations for economic assistance and miscellaneous payments.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.

Sec. 3302. Authorized uses of stockpile funds.

Sec. 3303. Disposal of certain materials in National Defense Stockpile.

Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.

Sec. 3312. Notification requirements.

Sec. 3313. Importation of strategic and critical materials.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

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

TITLE XXXV--PANAMA CANAL COMMISSION

Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Purchase of vehicles.

Sec. 3504. Expenditures only in accordance with treaties.

Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.

Sec. 3522. Definitions and recommendation for legislation.

Sec. 3523. Administrator.

Sec. 3524. Deputy Administrator and Chief Engineer.

Sec. 3525. Office of Ombudsman.

Sec. 3526. Appointment and compensation; duties.

Sec. 3527. Applicability of certain benefits.

Sec. 3528. Travel and transportation.

Sec. 3529. Clarification of definition of agency.

Sec. 3530. Panama Canal Employment System; merit and other employment requirements.

Sec. 3531. Employment standards.

Sec. 3532. Repeal of obsolete provision regarding interim application of Canal Zone Merit System.

Sec. 3533. Repeal of provision relating to recruitment and retention remuneration.

Sec. 3534. Benefits based on basic pay.

Sec. 3535. Vesting of general administrative authority of Commission.

Sec. 3536. Applicability of certain laws.

Sec. 3537. Repeal of provision relating to transferred or reemployed employees.

Sec. 3538. Administration of special disability benefits.

Sec. 3539. Panama Canal Revolving Fund.

Sec. 3540. Printing.

Sec. 3541. Accounting policies.

Sec. 3542. Interagency services; reimbursements.

Sec. 3543. Postal service.

Sec. 3544. Investigation of accidents or injury giving rise to claim.

Sec. 3545. Operations regulations.

Sec. 3546. Miscellaneous repeals.

Sec. 3547. Exemption from Metric Conversion Act of 1975.

Sec. 3548. Conforming and clerical amendments.

Sec. 3549. Repeal of Panama Canal Code.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ‘congressional defense committees’ means--

      (1) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

      (2) the Committee on National Security and the Committee on Appropriations of the House of Representatives.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Reserve components.

Sec. 106. Defense Inspector General.

Sec. 107. Chemical Demilitarization Program.

Sec. 108. Defense health programs.

Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters.

Sec. 112. Multiyear procurement authority for Army programs.

Sec. 113. Bradley TOW 2 Test Program sets.

Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.

Sec. 122. Arleigh Burke class destroyer program.

Sec. 123. EA-6B aircraft reactive jammer program.

Sec. 124. T-39N trainer aircraft for the Navy.

Sec. 125. Penguin missile program.

Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.

Sec. 132. Modification to multiyear procurement authority for C-17 aircraft program.

Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve components.

Sec. 142. Destruction of existing stockpile of lethal chemical agents and munitions.

Sec. 143. Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement for the Army as follows:

      (1) For aircraft, $1,314,015,000.

      (2) For missiles, $1,031,829,000.

      (3) For weapons and tracked combat vehicles, $1,409,514,000.

      (4) For ammunition, $1,003,028,000.

      (5) For other procurement, $2,990,240,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) NAVY- Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement for the Navy as follows:

      (1) For aircraft, $7,034,926,000.

      (2) For weapons, including missiles and torpedoes, $1,345,408,000.

      (3) For shipbuilding and conversion, $6,193,330,000.

      (4) For other procurement, $2,893,840,000.

    (b) MARINE CORPS- Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement for the Marine Corps in the amount of $560,148,000.

    (c) NAVY AND MARINE CORPS AMMUNITION- Funds are hereby authorized to be appropriated for procurement of ammunition for the Navy and the Marine Corps in the amount of $293,239,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement for the Air Force as follows:

      (1) For aircraft, $6,764,420,000.

      (2) For missiles, $2,525,875,000.

      (3) For ammunition, $278,302,000.

      (4) For other procurement, $5,814,419,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement of aircraft, vehicles, communications equipment, and other equipment for the reserve components of the Armed Forces as follows:

      (1) For the Army National Guard, $171,000,000.

      (2) For the Air National Guard, $234,000,000.

      (3) For the Army Reserve, $98,000,000.

      (4) For the Naval Reserve, $116,000,000.

      (5) For the Air Force Reserve, $94,000,000.

      (6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1997 the amount of $759,847,000 for--

      (1) the destruction of lethal chemical agents and munitions in accordance with section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521); and

      (2) the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for the Department of Defense for procurement for carrying out health care programs, projects, and activities of the Department of Defense in the total amount of $269,470,000.

Subtitle B--Army Programs

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

    Section 133 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.

    (a) AVENGER AIR DEFENSE MISSILE SYSTEM- Notwithstanding the limitation in subsection (k) of section 2306b of title 10, United States Code, relating to the maximum duration of a multiyear contract under the authority of that section, the Secretary of the Army may extend the multiyear contract in effect during fiscal year 1996 for the Avenger Air Defense

Missile system through fiscal year 1997 and may award such an extension.

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

    (c) JAVELIN MISSILE SYSTEM- The Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into multiyear procurement contracts for the procurement of the Javelin missile system.

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

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

Subtitle C--Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) AMOUNTS AUTHORIZED FROM SCN ACCOUNT- (1) Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 1997--

      (A) $699,071,000 is available for continued construction of the third vessel (designated SSN-23) in the Seawolf attack submarine class, which shall be the final vessel in that class;

      (B) $296,186,000 is available for long-lead and advance construction and procurement of components for construction of a submarine (previously designated by the Navy as the New Attack Submarine) beginning in fiscal year 1998 to be built by Electric Boat Division; and

      (C) $701,000,000 is available for long-lead and advance construction and procurement of components for construction of a second submarine (previously designated by the Navy as the New Attack Submarine) beginning in fiscal year 1999 to be built by Newport News Shipbuilding.

    (2) In addition to the purposes for which the amounts under subparagraphs (B) and (C) of paragraph (1) are available, such amounts are also available for contracts with Electric Boat Division and Newport News Shipbuilding to carry out the provisions of the ‘Memorandum of Agreement Among the Department of the Navy, Electric Boat Corporation (EB) and Newport News Shipbuilding and Drydock Company (NNS) Concerning the New Attack Submarine’, dated April 5, 1996, relating to design data transfer, design improvements, integrated process teams, and updated design base.

    (b) AMOUNTS AUTHORIZED FROM NAVY RDT&E ACCOUNT- (1) Of the amount authorized to be appropriated by section 201(2), $487,611,000 is available for the design of the submarine previously designated by the Navy as the New Attack Submarine.

    (2)(A) Of the amount authorized to be appropriated by section 201(2), $60,000,000 is available for obligation under contracts with Electric Boat Division and Newport News Shipbuilding and other entities to address the inclusion on future nuclear attack submarines of the core advanced technologies that are identified by the Secretary of Defense (in the report of the Secretary entitled ‘Report on Nuclear Attack Submarine Procurement and Submarine Technology’, submitted to Congress on March 26, 1996) as those technologies the maturation of which the Submarine Technology Assessment Panel recommended be addressed in its March 15, 1996, final report to the Assistant Secretary of the Navy for Research, Development, and Acquisition, as follows: hydrodynamics, alternative sail designs, advanced arrays, electric drive, external weapons, and active controls and mounts.

    (B) Of the amount available under subparagraph (A), $20,000,000 shall be equally divided between Electric Boat Division and Newport News Shipbuilding for the purpose of ensuring that those shipbuilders are principal participants in the process of addressing the inclusion of technologies referred to in subparagraph (A) on future nuclear attack submarines. Contracts with the shipbuilders under this subparagraph shall provide the shipbuilders with wide latitude to pursue submarine-wide, integrated systems approaches to the inclusion of such technologies. The Secretary of the Navy shall ensure that those shipbuilders have access for such purpose (under procedures prescribed by the Secretary) to the Navy laboratories and the Office of Naval Intelligence and (in accordance with arrangements to be made by the Secretary) to the Defense Advanced Research Projects Agency.

    (3) Of the amount authorized to be appropriated by section 201(2), $38,000,000 is available to begin funding those Category I and Category II advanced technologies described in Appendix C of the report of the Secretary of Defense referred to in paragraph (2)(A). The Secretary of the Navy shall ensure that Electric Boat Division and Newport News Shipbuilding are also principal participants in the technology initiatives pursued with such funds to ensure submarine-wide, integrated systems approaches to the inclusion of such technologies on future nuclear attack submarines.

    (4) In addition to the purposes for which the amounts under paragraphs (1), (2), and (3) are available, such amounts are also available for contracts with Electric Boat Division and Newport News Shipbuilding to carry out the provisions of the memorandum of agreement referred to in subsection (a)(2) for research and development activities under that memorandum of agreement.

    (c) AMOUNT FROM FISCAL YEAR 1996 FUNDS FOR NATIONAL DEFENSE SEALIFT FUND- (1) Section 132 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.

    (2) The amount referred to in section 132 of the National Defense Authorization Act for Fiscal Year 1996 (as in effect immediately before the repeal by paragraph (1)) shall be available to the Secretary of the Navy for activities relating only to advanced submarine technology that involve the construction of large scale vehicles for purposes of hydrodynamic and

hydroacoustic research on developmental designs for hulls and propulsion systems.

    (d) CONTRACTS AUTHORIZED- (1) The Secretary of the Navy is authorized, using funds available pursuant to subparagraphs (B) and (C) of subsection (a)(1), to enter into contracts with Electric Boat Division and Newport News Shipbuilding, and suppliers of components, during fiscal year 1997 for--

      (A) the procurement of long-lead components for the fiscal year 1998 submarine and the fiscal year 1999 submarine under this section; and

      (B) advance construction of such components and other components for such submarines.

    (2) The Secretary may enter into a contract or contracts under this section with the shipbuilder of the fiscal year 1998 submarine only if the Secretary enters into a contract or contracts under this section with the shipbuilder of the fiscal year 1999 submarine.

    (e) LIMITATIONS- (1)(A) Of the amounts specified in subsection (a)(1), not more than $100,000,000 may be obligated until the Secretary of Defense certifies in writing to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives that procurement of nuclear attack submarines described in subparagraph (B) will be under one or more contracts that are entered into after competition between Electric Boat Division and Newport News Shipbuilding in which the Secretary of the Navy solicits competitive proposals and awards the contract or contracts on the basis of price.

    (B) The submarines referred to in subparagraph (A) are nuclear attack submarines that are to be constructed beginning--

      (i) after fiscal year 1999; or

      (ii) if four submarines are to be procured as provided for in the plan required under section 131(c) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 208), after fiscal year 2001.

    (2) Of the amounts specified in subsection (a)(1), not more than $675,000,000 may be obligated until the Under Secretary of Defense for Acquisition and Technology submits to the congressional committees specified in paragraph (1) a report in writing detailing the following:

      (A) The Under Secretary’s oversight activities to date, and plans for the future, for the development and improvement of the nuclear attack submarine program of the Navy as required by section 131(b)(2)(C) of the National Defense Authorization Act for Fiscal Year 1996 (110 Stat. 207).

      (B) The implementation of, and activities conducted under, the program required to be established by the Director of the Defense Advanced Research Projects Agency by section 131(i) of the National Defense Authorization Act for Fiscal Year 1996 (110 Stat. 210) for the development and demonstration of advanced submarine technologies and a rapid prototype acquisition strategy for both land-based and at-sea subsystem and system demonstrations of such technologies.

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

    (3) Of the amount specified in subsection (b)(1), not more than $100,000,000 may be obligated or expended until the Under Secretary of Defense (Comptroller) certifies in writing to the congressional committees specified in paragraph (1) that--

      (A) funds specified in subsection (c)(2) have been made available for obligation; and

      (B) to the extent that funds specified in paragraphs (2) and (3) of subsection (b) have been appropriated for the purposes specified in such paragraphs, such funds have been made available for obligation.

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

    (g) DESIGN RESPONSIBILITY- (1) The Secretary of the Navy shall carry out the submarine program described in section 131 of the National Defense Authorization Act for Fiscal Year 1996 in a manner that ensures that each of the two shipbuilders in-volved in the design and construction of the four submarines described in that section be allowed to propose to the Secretary any design improvement that the shipbuilder considers appropriate for the submarines to be built by that shipbuilder as part of those four submarines. The Secretary shall ensure that both shipbuilders have full and open access to all design data concerning the design of the submarine previously designated by the Navy as the New Attack Submarine.

    (2) The designs proposed by the shipbuilders should proceed from, but not be limited to, the specific advanced technologies referred to in subsection (b)(2)(A), especially technologies involving hydrodynamics and hydroacoustics concepts.

    (3) The Secretary shall require both shipbuilders to submit to the Secretary an annual report on the progress of the design work on the submarines referred to in paragraph (1) and shall

transmit each such report to the committees specified in subsection (e)(1).

    (4) The Secretary shall also submit an annual report to the committees specified in subsection (e)(1) on the design improvements proposed by the two shipbuilders under paragraph (1) for incorporation on any of the four submarines and on the degree to which design information on the base design and design improvements has been shared between the shipbuilders. Each annual report shall set forth each design improvement proposed and whether that proposal was--

      (A) reviewed, approved, and funded by the Navy;

      (B) reviewed and approved, but not funded; or

      (C) not approved, in which case the report shall include the reasons therefor and any views of the shipyard making the proposal.

    (5) The reports referred to in paragraphs (3) and (4) shall be submitted concurrently with the annual revisions to the Secretary of Defense’s nuclear attack submarine plan required by section 131(e) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 209).

    (h) SERIAL PRODUCTION- The Secretary of Defense shall modify the plan relating to development of a program leading to production of a more capable and less expensive submarine than the New Attack Submarine that was submitted to Congress pursuant to section 131(c) of the National Defense Authorization Act for Fiscal Year 1996 in order to provide in such plan the option for selection of a design for a next submarine for serial production not earlier than fiscal year 2002 (rather than fiscal year 2003, as provided in paragraph (3)(B) of such section 131(c)).

    (i) REFERENCES TO SHIPBUILDERS- For purposes of this section--

      (1) the shipbuilder referred to as ‘Electric Boat Division’ is the Electric Boat Division of the General Dynamics Corporation; and

      (2) the shipbuilder referred to as ‘Newport News Shipbuilding’ is the Newport News Shipbuilding and Drydock Company.

    (j) SUBMARINES DEFINED BY REFERENCE TO FISCAL YEAR- For purposes of this section--

      (1) the term ‘fiscal year 1998 submarine’ means the submarine referred to in subsection (a)(1)(B); and

      (2) the term ‘fiscal year 1999 submarine’ means the submarine referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

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

    (2) Subject to paragraph (3), funds authorized to be appropriated by section 102(a)(3) may be made available for contracts entered into during fiscal year 1997 under subsection (b)(2) of such section 135 for construction (including advance procurement) for the Arleigh Burke class destroyers covered by such subsection (b)(2).

    (3) The aggregate amount of funds available under paragraphs (1) and (2) for contracts referred to in such paragraphs may not exceed $3,483,030,000.

    (4) Within the amount authorized to be appropriated by section 102(a)(3), $525,000,000 is authorized to be appropriated for advance procurement for construction for the Arleigh Burke class destroyers authorized by subsection (b).

    (b) AUTHORITY FOR MULTIYEAR PROCUREMENT OF TWELVE VESSELS- The Secretary of the Navy is authorized, pursuant to section 2306b of title 10, United States Code, to enter into multiyear contracts for the procurement of a total of 12 Arleigh Burke class destroyers at a procurement rate of three ships in each of fiscal years 1998, 1999, 2000, and 2001 in accordance with this subsection and subsection (a)(4), subject to the availability of appropriations for such destroyers. A contract for construction of one or more vessels that is entered into in accordance with this subsection shall include a clause that limits the liability of the Government to the contractor for any termination of the contract.

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

    (a) LIMITATION- None of the funds appropriated pursuant to section 102(a)(1) for modifications or upgrades of EA-6B aircraft may be obligated, other than for a reactive jammer program for such aircraft, until 30 days after the date on which the Secretary of the Navy submits to the congressional defense committees in writing--

      (1) a certification that some or all of such funds have been obligated for a reactive jammer program for EA-6B aircraft; and

      (2) a report that sets forth a detailed, well-defined program for--

        (A) developing a reactive jamming capability for EA-6B aircraft; and

        (B) upgrading the EA-6B aircraft of the Navy to incorporate the reactive jamming capability.

    (b) CONTINGENT TRANSFER OF FUNDS TO AIR FORCE- (1) If the Secretary of the Navy has not submitted the certification and report described in subsection (a) to the congressional defense committees before June 1, 1997, then, on that date, the Secretary of Defense shall transfer to the Air Force, out of appropriations available to the Navy for fiscal year 1997 for procurement of aircraft, the amount equal to the amount appropriated to the Navy for fiscal year 1997 for modifications and upgrades of EA-6B aircraft.

    (2) Funds transferred to the Air Force pursuant to paragraph (1) shall be available for maintaining and upgrading the jamming capability of EF-111 aircraft.

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

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

SEC. 125. PENGUIN MISSILE PROGRAM.

    (a) MULTIYEAR PROCUREMENT AUTHORITY- The Secretary of the Navy may, in accordance with section 2306b of title 10, United States Code, enter into multiyear procurement contracts for the procurement of not more than 106 Penguin missile systems.

    (b) LIMITATION ON TOTAL COST- The total amount obligated or expended for procurement of Penguin missile systems under contracts under subsection (a) may not exceed $84,800,000.

Subtitle D--Air Force Programs

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

    Section 134 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.

SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT PROGRAM.

    (a) MULTIYEAR CONTRACTS AUTHORIZED- The Secretary of the Air Force may enter into one or more multiyear contracts for the procurement of C-17 aircraft (including the section 2703 contract entered into before the date of the enactment of this Act under the authority of section 2703 of the Supplemental Appropriations Act of 1996 (title II of Public Law 104-134)). The total number of aircraft contracted to be procured under such multiyear contracts may not exceed 80. Any such contract shall be entered into in accordance with section 2306b of title 10, United States Code (and subject to such modifications as may be authorized by law in the maximum period for such contracts specified in subsection (k) of such section).

    (b) REQUIREMENT TO NEGOTIATE OPTION TO CONVERT EXISTING CONTRACT TO SIX PROGRAM YEARS- The Secretary of the Air Force shall negotiate with the prime contractor for the C-17 aircraft program so as to achieve a contract option for the United States under the section 2703 contract to convert the multiyear procurement period under that contract to a period of six program years based upon the level of funding for that program for fiscal year 1997.

    (c) CONTRACT PERIOD- A contract entered into after the date of the enactment of this Act on a multiyear basis under the authority of subsection (a) may (notwithstanding section 2306b(k) of title 10, United States Code) be for a period of six program years.

    (d) SECTION 2703 CONTRACT DEFINED- For purposes of this section, the term ‘section 2703 contract’ means the contract entered into by the Secretary of the Air Force on May 31, 1996, with the prime contractor for the C-17 aircraft program under the authority of section 2703 of the Supplemental Appropriations Act of 1996 (title II of Public Law 104-134) providing for a multiyear procurement of C-17 aircraft over seven program years with an option for the Secretary to convert that period to six program years.

Subtitle E--Other Matters

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

    (a) ASSESSMENTS REQUIRED- Not later than December 1, 1996, each officer referred to in subsection (b) shall submit to the congressional defense committees an assessment of the modernization priorities established for the reserve component or reserve components for which that officer is responsible.

    (b) RESPONSIBLE OFFICERS- The officers required to submit a report under subsection (a) are as follows:

      (1) The Chief of the National Guard Bureau.

      (2) The Chief of Army Reserve.

      (3) The Chief of Air Force Reserve.

      (4) The Director of Naval Reserve.

      (5) The Commanding General, Marine Forces Reserve.

SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS AND MUNITIONS.

    Section 152 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note) is amended by adding at the end the following new subsections:

    ‘(e) ASSESSMENT OF ALTERNATIVE TECHNOLOGIES FOR DEMILITARIZATION OF ASSEMBLED CHEMICAL MUNITIONS- (1) In addition to the assessment required by subsection (c), the Secretary of Defense shall conduct an assessment of the chemical demilitarization program for destruction of assembled chemical munitions and of the alternative demilitarization technologies and processes (other than incineration) that could be used for the destruction of the lethal chemical agents that are associated with these munitions, while ensuring maximum protection for the general public, the personnel involved in the demilitarization program, and the environment. The measures considered shall be limited to those that would minimize the risk to the public and reduce the total cost of the chemical agents and munitions destruction program. The assessment shall be conducted without regard to any limitation that would otherwise apply to the conduct of such assessment under any provision of law.

    ‘(2) The assessment shall be conducted in coordination with the National Research Council.

    ‘(3) Among the alternatives, the assessment shall include a determination of the cost of incineration of the current chemical munitions stockpile by building incinerators at each existing facility compared to the proposed cost of dismantling those same munitions, neutralizing them at each storage site (other than Tooele Army Depot or Johnston Atoll), and transporting

the neutralized remains and all munitions parts to a treatment, storage, and disposal facility within the United States that has the necessary environmental permits to undertake incineration of the material.

    ‘(4) Based on the results of the assessment, the Secretary shall develop appropriate recommendations for revision of the chemical demilitarization program.

    ‘(5) Not later than December 31, 1997, the Secretary of Defense shall submit to Congress a report on the assessment conducted in accordance with paragraph (1) and any recommendations for revision of the chemical demilitarization program, including the continued development of alternative demilitarization technologies and processes other than incineration that could be used for the destruction of the lethal chemical agents that are associated with these assembled chemical munitions and the chemical munitions demilitarization sites for which the selected technologies should be developed.

    ‘(f) PILOT PROGRAM FOR DEMILITARIZATION OF CHEMICAL AGENTS FOR ASSEMBLED MUNITIONS- (1) If the Secretary of Defense makes a decision to continue the development of an alternative demilitarization technology or process (other than incineration) that could be used for the destruction of the lethal chemical agents that are associated with assembled chemical munitions, $25,000,000 shall be available from the funds authorized to be appropriated in section 107 of the National Defense Authorization Act for Fiscal Year 1997 for the chemical agents and munitions destruction program, in order to initiate a pilot program using the selected alternative technology or process for the destruction of chemical agents that are stored at these sites.

    ‘(2) Not less than 30 days before using funds to initiate the pilot program under paragraph (1), the Secretary shall submit notice in writing to Congress of the Secretary’s intent to do so.

    ‘(3) The pilot program shall be conducted at the selected chemical agent and munitions stockpile storage site for which the alternative technology or process is recommended.’.

SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

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

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

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Sec. 203. Dual-use technology programs.

Sec. 204. Defense Special Weapons Agency.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Space-Based Infrared System program.

Sec. 213. Clementine 2 micro-satellite development program.

Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.

Sec. 215. Live-fire survivability testing of F-22 aircraft.

Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance aircraft.

Sec. 217. Cost analysis of F-22 aircraft program.

Sec. 218. F-22 aircraft program reports.

Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.

Sec. 220. Joint Advanced Strike Technology (JAST) program.

Sec. 221. Unmanned aerial vehicles.

Sec. 222. High altitude endurance unmanned aerial reconnaissance system.

Sec. 223. Cyclone class patrol craft self-defense.

Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic Guided Missile (EFOG-M) system.

Sec. 225. Hydra-70 rocket product improvement program.

Sec. 226. Federally funded research and development centers.

Sec. 227. Demilitarization of conventional munitions, rockets, and explosives.

Sec. 228. Research activities of the Defense Advanced Research Projects Agency relating to chemical and biological warfare defense technology.

Sec. 229. Certification of capability of United States to prevent illegal importation of nuclear, biological, or chemical weapons.

Sec. 230. Nonlethal weapons and technologies programs.

Sec. 231. Counterproliferation support program.

Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 1997.

Sec. 242. Certification of capability of United States to defend against single ballistic missile.

Sec. 243. Report on ballistic missile defense and proliferation.

Sec. 244. Revision to annual report on ballistic missile defense program.

Sec. 245. Report on Air Force National Missile Defense Plan.

Sec. 246. Capability of National Missile Defense system.

Sec. 247. Actions to limit adverse effects on private sector employment of establishment of National Missile Defense Joint Program Office.

Sec. 248. ABM Treaty defined.

Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.

Sec. 262. Report relating to Small Business Innovation Research Program.

Sec. 263. Amendment to University Research Initiative Support program.

Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive Research.

Sec. 265. Elimination of report on the use of competitive procedures for the award of certain contracts to colleges and universities.

Sec. 266. Pilot program for transfer of defense technology information to private industry.

Sec. 267. Research under transactions other than contracts and grants.

Sec. 268. Desalting technologies.

Sec. 269. Evaluation of digital video network equipment used in Olympic games.

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

Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.

Sec. 282. National Oceanographic Partnership Program.

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for the use of the Department of Defense for research, development, test, and evaluation as follows:

      (1) For the Army, $4,780,615,000.

      (2) For the Navy, $8,068,299,000.

      (3) For the Air Force, $14,756,366,000.

      (4) For Defense-wide activities, $9,691,293,000, of which--

        (A) $269,038,000 is authorized for the activities of the Director, Test and Evaluation; and

        (B) $21,968,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) FISCAL YEAR 1997- Of the amounts authorized to be appropriated by section 201, $4,031,343,000 shall be available for basic research and applied research projects.

    (b) BASIC RESEARCH AND APPLIED RESEARCH DEFINED- For purposes of this section, the term ‘basic research and applied research’ means work funded in program elements for defense research and development under Department of Defense category 6.1 or 6.2.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

    (a) ALLOCATION OF FUNDS- Of the amount appropriated pursuant to the authorization in section 201(4), $85,000,000 shall be available for the dual-use technology program under this section.

    (b) DESIGNATION OF OFFICIAL FOR DUAL-USE PROGRAM- (1) The Secretary of Defense shall designate a senior official in the Office of the Secretary of Defense to have as that official’s sole responsibilities developing policy relating to, and ensuring effective implementation of, the dual-use technology program of the Department of Defense. In carrying out such responsibilities, the official shall ensure--

      (A) that commercial technologies are integrated into current and future military systems to the maximum extent practicable;

      (B) that dual-use projects are coordinated with the joint warfighting science and technology plan referred to in section 270; and

      (C) that dual-use projects of the military departments and the defense agencies are coordinated and avoid unnecessary duplication.

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

    (c) FUNDING REQUIREMENT- Of the amounts appropriated pursuant to the authorizations in section 201 for the Department of Defense for science and technology programs for fiscal year 1997, at least 5 percent of such amounts shall be available only for dual-use projects of the Department of Defense. The funds made available under the preceding sentence are in addition to the funds made available under subsection (a).

    (d) LIMITATION ON OBLIGATIONS- Funds made available pursuant to subsections (a) and (c) may be used for a dual-use project only if the contract, cooperative agreement, or other

transaction by which the project is carried out is entered into through the use of competitive procedures.

    (e) TRANSFER AUTHORITY- In addition to the transfer authority provided in section 1001, the Secretary of Defense may transfer funds made available pursuant to subsections (a) and (c) for a dual-use project from a military department or defense agency to another military department or defense agency to ensure efficient implementation of the dual-use technology program. The Secretary may delegate the authority provided in the preceding sentence to the senior official designated under subsection (b).

    (f) FEDERAL COST SHARE- The share contributed by the Secretary of a military department or the head of a defense agency for the cost of a dual-use project during fiscal year 1997 may not be greater than 50 percent of the cost of the project for that fiscal year.

    (g) REPORT- At the same time the President submits to Congress the budget for fiscal year 1998 pursuant to section 1105(a) of title 31, United States Code, the Secretary of Defense shall submit to Congress a report that specifies the investment strategy for the dual-use technology program to be conducted during fiscal years 1998, 1999, and 2000.

    (h) DEFINITIONS- In this section:

      (1) The term ‘dual-use technology program’ means the program of the Department of Defense under which research or development of a dual-use technology (as defined in section 2491 of title 10, United States Code) is carried out and the costs of which are shared between the Department of Defense and non-Government entities. The term includes the dual-use critical technology program established pursuant to section 2511 of title 10, United States Code.

      (2) The term ‘dual-use project’ means a project under the dual-use technology program.

      (3) The term ‘science and technology program’ means a program of a military department under which basic research, applied research, or advanced technology development is carried out.

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

    There is hereby authorized to be appropriated for fiscal year 1997 the amount of $314,313,000 for the Defense Special Weapons Agency, of which--

      (1) $7,900,000 is for procurement;

      (2) $218,330,000 is for research, development, test, and evaluation; and

      (3) $88,083,000 is for operations and maintenance.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) FUNDING- Funds appropriated pursuant to the authorization of appropriations in section 201(3) are authorized to be made available for space launch modernization for purposes and in amounts as follows:

      (1) For the Evolved Expendable Launch Vehicle program, $44,457,000.

      (2) For a competitive reusable launch vehicle program (program element 63401F), $25,000,000.

    (b) LIMITATIONS- (1) Of the funds made available for the reusable launch vehicle program pursuant to subsection (a)(2), the total amount obligated for such purpose may not exceed the total amount allocated in the fiscal year 1997 current operating plan of the National Aeronautics and Space Administration for the Reusable Space Launch program of the National Aeronautics and Space Administration.

    (2) Of the funds made available for the Evolved Expendable Launch Vehicle program pursuant to subsection (a)(1), the total amount obligated for such purpose may not exceed $20,000,000 until the Secretary of Defense certifies to Congress that the Secretary has made available for obligation the funds, if any, that are made available for the Reusable Launch Vehicle program pursuant to subsection (a)(2).

    (c) COORDINATION OF ENGINE TESTING- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense and the Administrator of the National Aeronautics and Space Administration shall submit to Congress a joint plan for coordinating and eliminating unnecessary duplication in the operations and planned improvements of rocket engine and rocket engine component test facilities managed by the Department of the Air Force and the National Aeronautics and Space Administration. The plan shall provide, to the extent practical, for the development of commonly funded and commonly operated facilities.

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

    (a) FUNDING- Funds appropriated pursuant to the authorization of appropriations in section 201(3) are authorized to be made available for the Space-Based Infrared System program for purposes and in amounts as follows:

      (1) For Space Segment High, $173,290,000.

      (2) For Space Segment Low (the Space and Missile Tracking System), $247,221,000.

      (3) For Cobra Brass, $6,930,000.

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

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

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

    (a) AMOUNT FOR PROGRAM- Of the amount authorized to be appropriated under section 201(3), $50,000,000 shall be available for the Clementine 2 micro-satellite near-Earth asteroid interception mission.

    (b) LIMITATION- Of the funds authorized to be appropriated pursuant to this Act for the global positioning system (GPS) Block II F Satellite system, not more than $25,000,000 may be obligated until the Secretary of Defense certifies to Congress that--

      (1) funds appropriated for fiscal year 1996 for the Clementine 2 Micro-Satellite development program have been obligated in accordance with Public Law 104-106 and the Joint Explanatory Statement of the Committee of Conference accompanying S. 1124 (House Report 104-450 (104th Congress, second session)); and

      (2) the Secretary has made available for obligation the funds appropriated for fiscal year 1997 for the purpose specified in subsection (a).

SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIRCRAFT.

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

    (b) REPORT TO CONGRESS- In exercising the waiver authority in section 2366(c) of title 10, United States Code, the Secretary shall submit to Congress a report explaining how the Secretary plans to evaluate the survivability of the V-22 Osprey aircraft system and assessing possible alternatives to realistic survivability testing of the system.

    (c) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS- If the Secretary of Defense submits in accordance with section 2366(c)(1) of title 10, United States Code, a certification that live-fire testing of the V-22 Osprey aircraft would be unreasonably expensive and impractical, the Secretary shall require that components critical to the survivability of the V-22 Osprey aircraft be subjected to live-fire testing under an alternative live-fire testing program that, by reason of the number of such components tested and the realism of the threat environments under which the components are tested, will yield test results that provide a sufficient basis for drawing meaningful conclusions about the survivability of V-22 Osprey aircraft.

    (d) FUNDING- The funds required to carry out any alternative live-fire testing of the V-22 Osprey aircraft system shall be made available from amounts appropriated for the V-22 Osprey program.

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

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

    (b) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS- If the Secretary of Defense submits in accordance with section 2366(c)(1) of title 10, United States Code, a certification that live-fire testing of the F-22 aircraft would be unreasonably expensive and impractical, the Secretary shall require that components and subsystems critical to the survivability of the F-22 aircraft be subjected to live-fire testing under an alternative live-fire testing program that, by reason of the number of such components and subsystems tested and the realism of the threat environments under which the components and subsystems are tested, will yield test results that provide a sufficient basis for drawing meaningful conclusions about the survivability of F-22 aircraft.

    (c) FUNDING- The funds required to carry out any alternative live-fire testing of the F-22 aircraft system shall be made available from amounts appropriated for the F-22 program.

SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED RECONNAISSANCE AIRCRAFT.

    (a) LIMITATION- Effective on the date of the enactment of this Act, not more than $50,000,000 (in fiscal year 1997 constant dollars) may be obligated or expended for--

      (1) research, development, test, and evaluation for, and acquisition and modification of, the F-16 tactical manned reconnaissance aircraft program; and

      (2) costs associated with the termination of such program.

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

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

    (a) REVIEW AND REPORT- The Secretary of Defense shall direct the Cost Analysis Improvement Group in the Office of the Secretary of Defense to review the F-22 aircraft program, analyze and estimate the production costs of the program, and submit to the Secretary a report on the results of the review.

    (b) CONTENT OF REPORT- The report shall include--

      (1) a comparison of--

        (A) the results of the review, with

        (B) the results of the last independent estimate of production costs of the program that was prepared by the Cost Analysis Improvement Group in July 1991; and

      (2) a description of any major changes in programmatic assumptions that have occurred since the estimate referred to in paragraph (1)(B) was made, including any major change in assumptions regarding the program schedule, the quantity of aircraft to be developed and acquired, and the annual rates of production, together with

an assessment of the effects of such changes on the program.

    (c) SUBMISSION OF REPORT- Not later than March 30, 1997, the Secretary shall submit the report to the congressional defense committees, together with the Secretary’s views on the matters covered by the report.

    (d) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF REPORT- Not more than 92 percent of the funds appropriated for the F-22 aircraft program pursuant to the authorization of appropriations in section 103(1) may be expended until the Secretary of Defense submits the report required under this section.

SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

    (a) ANNUAL REPORT- (1) At the same time that the President submits the budget for a fiscal year to Congress pursuant to section 1105(a) of title 31, United States Code, the Secretary of Defense shall submit to Congress a report on event-based decisionmaking for the F-22 aircraft program for that fiscal year. The Secretary shall submit the report for fiscal year 1997 not later than October 1, 1996.

    (2) The report for a fiscal year shall include the following:

      (A) A discussion of each decision known within the Department of Defense as an ‘event-based decision’ that is expected to be made during that fiscal year regarding whether the F-22 program is to proceed into a new phase or into a new administrative subdivision of a phase.

      (B) The criteria known within the Department of Defense as ‘exit criteria’ to be applied, for purposes of making the event-based decision, in determining whether the F-22 aircraft program has demonstrated the specific progress necessary for proceeding into the new phase or administrative subdivision of a phase.

    (b) REPORT ON EVENT-BASED DECISIONS- Not later than 30 days after an event-based decision has been made for the F-22 aircraft program, the Secretary of Defense shall submit to Congress a report on the decision. The report shall include the following:

      (1) A discussion of the commitments made, and the commitments to be made, under the program as a result of the decision.

      (2) The exit criteria applied for purposes of the decision.

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

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

    (a) REPORT ON PROGRAM- Not later than March 30, 1997, the Secretary of Defense shall submit to the congressional defense committees a report on the F/A-18E/F aircraft program.

    (b) CONTENT OF REPORT- The report shall contain the following:

      (1) A review of the F/A-18E/F aircraft program.

      (2) An analysis and estimate of the production costs of the program for the total number of aircraft realistically expected to be procured at each of three annual production rates as follows:

        (A) 18 aircraft.

        (B) 24 aircraft.

        (C) 36 aircraft.

      (3) A comparison of the costs and benefits of the program with the costs and benefits of the F/A-18C/D aircraft program taking into account the operational combat effectiveness of the aircraft.

    (c) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF REPORT- Not more than 90 percent of the funds authorized to be appropriated by this Act for the procurement of F/A-18E/F aircraft may be obligated or expended for procurement of such aircraft before the date that is 30 days after the date on which the congressional defense committees receive the report required under subsection (a).

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

    (a) ALLOCATION OF FUNDS- Of the amounts authorized to be appropriated pursuant to the authorizations in section 201, $602,069,000 shall be available only for advanced technology development for the Joint Advanced Strike Technology (JAST) program. Of that amount--

      (1) $259,833,000 shall be available only for program element 63800N in the budget of the Department of Defense for fiscal year 1997;

      (2) $263,836,000 shall be available only for program element 63800F in the budget of the Department of Defense for fiscal year 1997; and

      (3) $78,400,000 shall be available only for program element 63800E in the budget of the Department of Defense for fiscal year 1997.

    (b) ANALYSIS OF FORCE STRUCTURE- Of the amounts authorized to be appropriated by section 201 for the Joint Advanced Strike Technology program, up to $10,000,000 shall be available for the conduct of an analysis by the Institute for Defense Analyses of the following:

      (1) The weapon systems force structure required to meet the anticipated range of threats projected by the intelligence community for the period 2000 through 2025.

      (2) Alternative force mixes, including, at a minimum, the following force mixes:

        (A) Joint Strike Fighter derivative aircraft; remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, AH-1W, RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, and B-52 aircraft; and air-to-surface and surface-to-surface weapons systems.

        (B) Joint Strike Fighter derivative aircraft; remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-16, F-15, F-117, and F-22 aircraft; and air-to-surface and surface-to-surface weapons systems.

      (3) Cost and operational effectiveness of the alternative force mixes analyzed under paragraph (2), including

sensitivity analyses related to system performance, costs, threats, and force employment scenarios.

      (4) Required operational capability dates of systems not yet in production for the force mixes analyzed under paragraph (2).

      (5) Affordability, commonality, and roles and missions considerations related to the alternative force mixes analyzed under paragraph (2).

    (c) COST REVIEW OF FORCE STRUCTURE ANALYSIS- The Secretary of Defense shall direct the Cost Analysis Improvement Group in the Office of the Secretary of Defense to review cost estimates made under the analysis conducted under subsection (b) and submit to the Secretary a report on the results of the review. The report may include comments and additional cost sensitivity analyses.

    (d) BRIEFING AND REPORT- (1) Not later than November 15, 1996, the Secretary of Defense shall make available to the congressional defense committees a briefing on the plan and assumptions for the analysis to be conducted under subsection (b).

    (2) Not later than May 15, 1997, the Secretary of Defense shall submit to the congressional defense committees a report containing a copy of the analysis conducted under subsection (b) and of the cost review conducted under subsection (c), together with the views of the Secretary on such analysis and cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

    (a) PROCUREMENT FUNDING REQUEST- The funding request for procurement for unmanned aerial vehicles for any fiscal year shall be set forth under the funding requests for the military departments in the budget of the Department of Defense.

    (b) TRANSFER OF PROGRAM MANAGEMENT- Program management for the Predator Unmanned Aerial Vehicle, and programmed funding for such vehicle for fiscal years 1998, 1999, 2000, 2001, and 2002 (as set forth in the future-years defense program), shall be transferred to the Department of the Air Force, effective October 1, 1996, or the date of the enactment of this Act, whichever is later.

    (c) PROHIBITION ON PROVIDING OPERATING CAPABILITY FROM NAVAL VESSELS- No funds authorized to be appropriated by this Act may be obligated for purposes of providing the capability of the Predator Unmanned Aerial Vehicle to operate from naval vessels.

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

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

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

    (a) STUDY REQUIRED- The Secretary of Defense shall perform a study of the operational requirements for vessel self-defense for the Cyclone class patrol craft and a comparative evaluation of the potential means for meeting the operational requirements for self-defense of the craft. The study shall consider the range of operational scenarios in which the craft is expected to be employed.

    (b) SYSTEMS TO BE EVALUATED- The study under subsection (a) shall consider those self-defense systems that could be employed aboard the Cyclone class patrol craft, including the Barak ship self-defense missile system.

    (c) REPORT- Not later than March 31, 1997, the Secretary shall submit to Congress a report containing the results of the study under subsection (a).

SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) SYSTEM.

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

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

    (a) FUNDING AUTHORIZATION- Of the amount authorized to be appropriated under section 201(1) for the Army for Other Missile Product Improvement Programs, $9,000,000 is authorized as specified in subsection (b) for completion of the Hydra-70 product improvement program authorized for fiscal year 1996.

    (b) AUTHORIZED ACTIONS- Funding is authorized to be appropriated for the following:

      (1) Procurement for test and flight qualification of at least one nondevelopmental item 2.75-inch composite rocket motor propellant type, along with other nondevelopmental item candidate motors that use composite propellant as the propulsion component.

      (2) Platform integration, including additional quantities of the motor chosen for operational certification on the Apache attack helicopter.

    (c) DEFINITION- In this section, the term ‘nondevelopmental item’ has the meaning provided in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    (a) CENTERS COVERED- Funds authorized to be appropriated for the Department of Defense for fiscal year 1997 under section 201 may be obligated to procure work from a federally funded research and development center (in this section referred to as an ‘FFRDC’) only in the case of a center named in the report required by subsection (b) and, in the case of such a center, only in an amount not in excess of the

amount of the proposed funding level set forth for that center in such report.

    (b) REPORT ON ALLOCATIONS FOR CENTERS- (1) Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report containing--

      (A) the name of each FFRDC from which work is proposed to be procured for the Department of Defense for fiscal year 1997;

      (B) for each such center, the proposed funding level and the estimated personnel level for fiscal year 1997; and

      (C) for each such center, an unambiguous definition of the unique core competencies required to be maintained for fiscal year 1997.

    (2) The total of the proposed funding levels set forth in the report for all FFRDCs may not exceed the amount set forth in subsection (d).

    (c) LIMITATION PENDING SUBMISSION OF REPORT- Not more than 15 percent of the funds authorized to be appropriated for the Department of Defense for fiscal year 1997 for FFRDCs under section 201 may be obligated to procure work from an FFRDC until the Secretary of Defense submits the report required by subsection (b).

    (d) FUNDING- (1) Subject to paragraph (2), of the amounts authorized to be appropriated by section 201, not more than a total of $1,214,650,000 may be obligated to procure services from the FFRDCs named in the report required by subsection (b).

    (2) The limitation in paragraph (1) does not apply to funds obligated for the procurement of equipment for FFRDCs.

    (e) AUTHORITY TO WAIVE FUNDING LIMITATION- The Secretary of Defense may waive the limitation regarding the maximum funding amount that applies under subsection (a) to an FFRDC. Whenever the Secretary proposes to make such a waiver, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives notice of the proposed waiver and the reasons for the waiver. The waiver may then be made only after the end of the 60-day period that begins on the date on which the notice is submitted to those committees, unless the Secretary determines that it is essential to the national security that funds be obligated for work at that center in excess of that limitation before the end of such period and notifies those committees of that determination and the reasons for the determination.

SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND EXPLOSIVES.

    (a) ESTABLISHMENT OF CONVENTIONAL MUNITIONS, ROCKETS, AND EXPLOSIVES DEMILITARIZATION PROGRAM- The Secretary of Defense shall establish an integrated program for the development and demonstration of technologies for the demilitarization and disposal of conventional munitions, rockets, and explosives in a manner that complies with applicable environmental laws.

    (b) DURATION OF PROGRAM- The program established pursuant to subsection (a) shall be in effect for a period of at least five years, beginning with fiscal year 1997.

    (c) FUNDING- Of the amount authorized to be appropriated in section 201, $15,000,000 is authorized to be appropriated for the program established pursuant to subsection (a). The funding request for the program shall be set forth separately in the budget justification documents for the budget of the Department of Defense for each fiscal year during which the program is in effect.

    (d) REPORTS- The Secretary of Defense shall submit to Congress a report on the plan for the program established pursuant to subsection (a) at the same time the President submits to Congress the budget for fiscal year 1998. The Secretary shall submit an updated version of such report, setting forth in detail the progress of the program, at the same time the President submits the budget for each fiscal year after fiscal year 1998 during which the program is in effect.

SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY RELATING TO CHEMICAL AND BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

    (a) AUTHORITY- Section 1701(c) of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1853; 50 U.S.C. 1522) is amended--

      (1) by inserting ‘(1)’ before ‘The Secretary’; and

      (2) by adding at the end the following new paragraph:

    ‘(2) The Director of the Defense Advanced Research Projects Agency may conduct a program of basic and applied research and advanced technology development on chemical and biological warfare defense technologies and systems. In conducting such program, the Director shall seek to avoid unnecessary duplication of the activities under the program with chemical and biological warfare defense activities of the military departments and defense agencies and shall coordinate the activities under the program with those of the military departments and defense agencies.’.

    (b) FUNDING- Section 1701(d) of such Act is amended--

      (1) in paragraph (1), by striking out ‘military departments’ and inserting in lieu thereof ‘Department of Defense’;

      (2) in paragraph (2), by inserting after ‘requests for the program’ in the first sentence the following: ‘(other than for activities under the program conducted by the Defense Advanced Research Projects Agency under subsection (c)(2))’;

      (3) by redesignating paragraph (3) as paragraph (4); and

      (4) by inserting after paragraph (2) the following new paragraph (3):

    ‘(3) The program conducted by the Defense Advanced Research Projects Agency under subsection (c)(2) shall be set forth as a separate program element in the budget of that agency.’.

SEC. 229. CERTIFICATION OF CAPABILITY OF UNITED STATES TO PREVENT ILLEGAL IMPORTATION OF NUCLEAR, BIOLOGICAL, AND CHEMICAL WEAPONS.

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

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

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

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

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) FUNDING- Of the funds authorized to be appropriated to the Department of Defense under section 201(4), $186,200,000 shall be available for the Counterproliferation Support Program, of which $75,000,000 shall be available for a tactical antisatellite technologies program.

    (b) ADDITIONAL AUTHORITY TO TRANSFER AUTHORIZATIONS- (1) In addition to the transfer authority provided in section 1001, upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of Defense in this division for fiscal year 1997 to counterproliferation programs, projects, and activities identified as areas for progress by the Counterproliferation Program Review Committee established by section 1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note). Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred.

    (2) The total amount of authorizations transferred under the authority of this subsection may not exceed $50,000,000.

    (3) The authority provided by this subsection to transfer authorizations--

      (A) may only be used to provide authority for items that have a higher priority than the items from which authority is transferred; and

      (B) may not be used to provide authority for an item that has been denied authorization by Congress.

    (4) A transfer made from one account to another under the authority of this subsection shall be deemed to increase the amount authorized for the account to which the amount is transferred by an amount equal to the amount transferred.

    (5) The Secretary of Defense shall promptly notify Congress of transfers made under the authority of this subsection.

    (c) LIMITATION ON USE OF FUNDS FOR TECHNICAL STUDIES AND ANALYSES PENDING RELEASE OF FUNDS- (1) None of the funds authorized to be appropriated to the Department of Defense for fiscal year 1997 for program element 605104D, relating to technical studies and analyses, may be obligated or expended until the funds referred to in paragraph (2) have been released to the program manager of the tactical anti-satellite technology program for implementation of that program.

    (2) The funds for release referred to in paragraph (1) are as follows:

      (A) Funds authorized to be appropriated by section 218(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 222) that are available for the program referred to in paragraph (1).

      (B) Funds authorized to be appropriated to the Department for fiscal year 1997 by this Act for the Counterproliferation Support Program that are to be made available for that program.

Subtitle C--Ballistic Missile Defense Programs

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

    (a) PROGRAM AMOUNTS- Of the amount appropriated pursuant to section 201(4), the following amounts may be obligated for the following systems managed by the Ballistic Missile Defense Organization:

      (1) For the Theater High Altitude Area Defense (THAAD) System, $621,798,000.

      (2) For the Navy Upper Tier (Theater Wide) system, $304,171,000.

      (3) For the National Missile Defense System, $858,437,000.

      (4) For the Corps Surface-to-Air Missile (SAM)/Medium Extended Air Defense System (MEADS), $56,200,000.

    (b) LIMITATION- None of the funds appropriated or otherwise made available for the Department of Defense pursuant to this or any other Act may be obligated or expended by the Office of the Under Secretary of Defense for Acquisition and Technology for official representation activities, or related activities, until the Secretary of Defense certifies to Congress that--

      (1) the Secretary has made available for obligation the funds provided under subsection (a) for the purposes specified in that subsection and in the amounts appropriated pursuant to that subsection; and

      (2) the Secretary has included the Navy Upper Tier theater missile defense system in the theater missile defense core program.

    (c) LIMITATIONS- Not more than $15,000,000 of the amount available for the Corps SAM/MEADS program under

subsection (a) may be obligated until the Secretary of Defense submits to the congressional defense committees the following:

      (1) An initial program estimate for the Corps SAM/MEADS program, including a tentative schedule of major milestones and an estimate of the total program cost through initial operational capability.

      (2) A report on the options associated with the use of existing systems, technologies, and program management mechanisms to satisfy the requirement for the Corps surface-to-air missile, including an assessment of cost and schedule implications in relation to the program estimate submitted under paragraph (1).

      (3) A certification that there will be no increase in overall United States funding commitment to the project definition and validation phase of the Corps SAM/MEADS program as a result of the withdrawal of France from participation in the program.

SEC. 242. CERTIFICATION OF CAPABILITY OF UNITED STATES TO DEFEND AGAINST SINGLE BALLISTIC MISSILE.

    Not later than 15 days after the date of the enactment of this Act, the President shall submit to Congress a certification in writing stating specifically whether or not the United States has the military capability (as of the time of the certification) to intercept and destroy a single ballistic missile launched at the territory of the United States.

SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO-LIFERATION.

    The Secretary of Defense shall submit to Congress a report on ballistic missile defense and the proliferation of weapons of mass destruction, including nuclear, chemical, and biological weapons, and the missiles that can be used to deliver them. The report shall be submitted not later than December 31, 1996, and shall include the following:

      (1) An assessment of how United States theater missile defenses contribute to United States efforts to prevent proliferation, including an evaluation of the specific effect United States theater missile defense systems can have on dissuading other states from acquiring ballistic missiles.

      (2) An assessment of how United States national missile defenses contribute to United States efforts to prevent proliferation.

      (3) An assessment of the effect of the lack of national missile defenses on the desire of other states to acquire ballistic missiles and an evaluation of the types of missiles other states might seek to acquire as a result.

      (4) A detailed review of the linkages between missile defenses (both theater and national) and each of the categories of counterproliferation activities identified by the Secretary of Defense as part of the Defense Counterproliferation Initiative announced by the Secretary in December 1993.

      (5) A description of how theater and national ballistic missile defenses can augment the effectiveness of other counterproliferation tools.

SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE DEFENSE PROGRAM.

    Section 224(b) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 2431 note) is amended--

      (1) by striking out paragraphs (3), (4), and (10);

      (2) by redesignating paragraphs (5) and (6) as paragraphs (3) and (4), respectively;

      (3) by redesignating paragraph (7) as paragraph (5) and in that paragraph by striking out ‘of the Soviet Union’ and ‘for the Soviet Union’;

      (4) by redesignating paragraph (8) as paragraph (6); and

      (5) by redesignating paragraph (9) as paragraph (7) and in that paragraph--

        (A) by striking out ‘of the Soviet Union’ in subparagraph (A);

        (B) by striking out subparagraphs (C) through (F); and

        (C) by redesignating subparagraph (G) as subparagraph (C).

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

    Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the following matters regarding the National Missile Defense Plan of the Air Force:

      (1) The cost and operational effectiveness of a system that could be developed pursuant to that plan.

      (2) The arms control implications of such a system.

      (3) The growth potential of such a system to meet future threats.

      (4) The recommendations of the Secretary for improvements to that plan.

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

    The Secretary of Defense shall ensure that any National Missile Defense system deployed by the United States is capable of defeating the threat posed by the Taepo Dong II missile of North Korea.

SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR EMPLOYMENT OF ESTABLISHMENT OF NATIONAL MISSILE DEFENSE JOINT PROGRAM OFFICE.

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

SEC. 248. ABM TREATY DEFINED.

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

Subtitle D--Other Matters

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

    (a) ALLOCATION OF FUNDS- The Secretary of the Air Force shall allocate funds authorized to be appropriated by this title and title III of this Act for maintenance and repair of real property at military installations of the Department of the Air Force without regard to whether the installation is supported with funds authorized by this title or title III of this Act.

    (b) MIXING OF FUNDS PROHIBITED ON INDIVIDUAL PROJECTS- The Secretary of the Air Force may not combine funds authorized to be appropriated by this title and funds authorized to be appropriated by title III for an individual project for maintenance and repair of real property at a military installation of the Department of the Air Force.

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

    Not later than March 30, 1997, the Comptroller General shall submit to Congress and to the Secretary of Defense a report setting forth the following with respect to the Small Business Innovation Research Program (as defined by section 2491(11) of title 10, United States Code):

      (1) An assessment of whether there has been a demonstrable reduction in the quality of research performed under funding agreements awarded by the Department of Defense under the program since fiscal year 1995.

      (2) An assessment of the degree to which competitive procedures are being followed throughout the military departments and defense agencies in awarding funding agreements under the program.

      (3) An assessment of the degree to which technologies developed through the program are or are likely to be used in military projects and programs.

SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT PROGRAM.

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

SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH.

    Section 257(d) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is amended--

      (1) in paragraph (1)--

        (A) by striking out ‘Director of the National Science Foundation’ and inserting in lieu thereof ‘Under Secretary of Defense for Acquisition and Technology’; and

        (B) by striking out ‘and shall notify the Director of Defense Research and Engineering of the States so designated’; and

      (2) in paragraph (2)--

        (A) in the matter preceding subparagraph (A)--

          (i) by striking out ‘Director of the National Science Foundation’ and inserting in lieu thereof ‘Under Secretary of Defense for Acquisition and Technology’; and

          (ii) by striking out ‘as determined by the Director’ and inserting in lieu thereof ‘as determined by the Under Secretary’;

        (B) in subparagraph (A), by striking out ‘(to be determined in consultation with the Secretary of Defense);’ and inserting in lieu thereof ‘; and’;

        (C) by striking out ‘; and’ at the end of subparagraph (B) and inserting in lieu thereof a period; and

        (D) by striking out subparagraph (C).

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

    Section 2361 of title 10, United States Code, is amended by striking out subsection (c).

SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY INFORMATION TO PRIVATE INDUSTRY.

    (a) PROGRAM REQUIRED- The Secretary of Defense shall carry out a pilot program to demonstrate online transfers of information on defense technologies to businesses in the private sector through an interactive data network involving Small Business Development Centers of institutions of higher education.

    (b) COMPUTERIZED DATA BASE OF DEFENSE TECHNOLOGIES- (1) Under the pilot program, the Secretary shall enter into an agreement with the head of an eligible institution of higher education that provides for such institution--

      (A) to develop and maintain a computerized data base of information on defense technologies;

      (B) to make such information available online to--

        (i) businesses; and

        (ii) other institutions of higher education entering into partnerships with the Secretary under subsection (c).

    (2) The online accessibility may be established by means of any of, or any combination of, the following:

      (A) Digital teleconferencing.

      (B) International Signal Digital Network lines.

      (C) Direct modem hookup.

    (c) PARTNERSHIP NETWORK- Under the pilot program, the Secretary shall seek to enter into agreements with the heads of several eligible institutions of higher education having strong business education programs to provide for the institutions of higher education entering into such agreements--

      (1) to establish interactive computer links with the data base developed and maintained under subsection (b); and

      (2) to assist the Secretary in making information on defense technologies available online to the broadest practicable number, types, and sizes of businesses.

    (d) ELIGIBLE INSTITUTIONS- For the purposes of this section, an institution of higher education is eligible to enter into an agreement under subsection (b) or (c) if the institution has a Small Business Development Center.

    (e) DEFENSE TECHNOLOGIES COVERED- (1) The Secretary shall designate the technologies to be covered by the pilot program from among the existing and experimental technologies that the Secretary determines--

      (A) are useful in meeting Department of Defense needs; and

      (B) should be made available under the pilot program to facilitate the satisfaction of such needs by private sector sources.

    (2) Technologies covered by the program should include technologies useful for defense purposes that can also be used for nondefense purposes (with or without modification).

    (f) DEFINITIONS- In this section:

      (1) The term ‘Small Business Development Center’ means a small business development center established pursuant to section 21 of the Small Business Act (15 U.S.C. 648).

      (2) The term ‘defense technology’ means a technology designated by the Secretary of Defense under subsection (d).

      (3) The term ‘partnership’ means an agreement entered into under subsection (c).

    (g) TERMINATION OF PILOT PROGRAM- The pilot program shall terminate one year after the Secretary enters into an agreement under subsection (b).

    (h) AUTHORIZATION OF APPROPRIATIONS- Of the amount authorized to be appropriated under section 201(4) for university research initiatives, $3,000,000 is available for the pilot program.

SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS.

    (a) CONDITIONS FOR USE OF AUTHORITY- Subsection (e) of section 2371 of title 10, United States Code, is amended--

      (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B);

      (2) by inserting ‘and’ after the semicolon at the end of subparagraph (A), as so redesignated;

      (3) by striking out ‘; and’ at the end of subparagraph (B), as so redesignated, and inserting in lieu thereof a period;

      (4) by inserting ‘(1)’ after ‘(e) CONDITIONS- ’; and

      (5) by striking out paragraph (3) and inserting in lieu thereof the following:

    ‘(2) A cooperative agreement containing a clause under subsection (d) or a transaction authorized by subsection (a) may be used for a research project when the use of a standard contract, grant, or cooperative agreement for such project is not feasible or appropriate.’.

    (b) REVISED REQUIREMENT FOR ANNUAL REPORT- Section 2371 of such title is amended by striking out subsection (h) and inserting in lieu thereof the following:

    ‘(h) ANNUAL REPORT- (1) Not later than 90 days after the end of each fiscal year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the use by the Department of Defense during such fiscal year of--

      ‘(A) cooperative agreements authorized under section 2358 of this title that contain a clause under subsection (d); and

      ‘(B) transactions authorized by subsection (a).

    ‘(2) The report shall include, with respect to the cooperative agreements and other transactions covered by the report, the following:

      ‘(A) The technology areas in which research projects were conducted under such agreements or other transactions.

      ‘(B) The extent of the cost-sharing among Federal Government and non-Federal sources.

      ‘(C) The extent to which the use of the cooperative agreements and other transactions--

        ‘(i) has contributed to a broadening of the technology and industrial base available for meeting Department of Defense needs; and

        ‘(ii) has fostered within the technology and industrial base new relationships and practices that support the national security of the United States.

      ‘(D) The total amount of payments, if any, that were received by the Federal Government during the fiscal year covered by the report pursuant to a clause described in subsection (d) that was included in the cooperative agreements and other transactions, and the amount of such payments, if any, that were credited to each account established under subsection (f).’.

    (c) DIVISION OF SECTION INTO DISTINCT PROVISIONS BY SUBJECT MATTER- (1) Chapter 139 of title 10, United States Code, is amended--

      (A) by inserting before the last subsection of section 2371 (relating to cooperative research and development agreements under the Stevenson-Wydler Technology Innovation Act of 1980) the following:

‘Sec. 2371a. Cooperative research and development agreements under Stevenson-Wydler Technology Innovation Act of 1980’;

      (B) in section 2371a (as designated by the amendment made by subparagraph (A)), by striking out ‘(i) COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS UNDER STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980- ’; and

      (C) in the table of sections at the beginning of such chapter, by inserting after the item relating to section 2371 the following:

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

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

SEC. 268. DESALTING TECHNOLOGIES.

    (a) FINDINGS- Congress makes the following findings:

      (1) Access to scarce fresh water is likely to be a cause of future military conflicts in the Middle East and has a direct impact on stability and security in the region.

      (2) The Middle East is an area of vital and strategic importance to the United States.

      (3) The United States has played a military role in the Middle East, most recently in the Persian Gulf War, and may likely be called upon again to deter aggression in the region.

      (4) United States troops have used desalting technologies to guarantee the availability of fresh water in past deployments in the Middle East.

      (5) Adequate, efficient, and cheap access to high-quality fresh water will be vital to maintaining the readiness and sustainability of troops of both the United States and its allies.

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

    (c) FUNDING FOR RESEARCH AND DEVELOPMENT- Of the amounts authorized to be appropriated by this title, the Secretary shall place greater emphasis on making funds available for research and development into efficient and economical processes and methods for converting saline water into fresh water.

SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED IN OLYMPIC GAMES.

    (a) EVALUATION- The Secretary of Defense shall evaluate the digital video network equipment used in the 1996 Olympic games to determine whether such equipment would be the most appropriate equipment for use as a test bed for the military application of commercial off-the-shelf advanced technology linking multiple continents, multiple satellites, and multiple theaters of operations by compressed digital audio and visual broadcasting technology.

    (b) REPORT- Not later than April 1, 1997, the Secretary of Defense shall submit to Congress a report on the results of the evaluation conducted under subsection (a).

SEC. 270. ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY PLAN.

    (a) ANNUAL PLAN REQUIRED- On March 1 of each year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a plan for ensuring that the science and technology program of the Department of Defense supports the development of the future joint warfighting capabilities identified as priority requirements for the Armed Forces.

    (b) FIRST PLAN- The first plan under subsection (a) shall be submitted not later than March 1, 1997.

Subtitle E--National Oceanographic Partnership Program

SEC. 281. FINDINGS.

    Congress finds the following:

      (1) The oceans and coastal areas of the United States are among the Nation’s most valuable natural resources, making substantial contributions to economic growth, quality of life, and national security.

      (2) Oceans drive global and regional climate. Hence, they contain information affecting agriculture, fishing, and the prediction of severe weather.

      (3) Understanding of the oceans through basic and applied research is essential for using the oceans wisely and protecting their limited resources. Therefore, the United States should maintain its world leadership in oceanography as one key to its competitive future.

      (4) Ocean research and education activities take place within Federal agencies, academic institutions, and industry. These entities often have similar requirements for research facilities, data, and other resources (such as oceanographic research vessels).

      (5) The need exists for a formal mechanism to coordinate existing partnerships and establish new partnerships for the sharing of resources, intellectual talent, and facilities in the ocean sciences and education, so that optimal use can be made of this most important natural resource for the well-being of all Americans.

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

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

‘CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

      ‘Sec.

      ‘7901. National Oceanographic Partnership Program.

      ‘7902. National Ocean Research Leadership Council.

      ‘7903. Ocean Research Advisory Panel.

‘Sec. 7901. National Oceanographic Partnership Program

    ‘(a) ESTABLISHMENT- The Secretary of the Navy shall establish a program to be known as the ‘National Oceanographic Partnership Program’.

    ‘(b) PURPOSES- The purposes of the program are as follows:

      ‘(1) To promote the national goals of assuring national security, advancing economic development, protecting quality of life, and strengthening science education and communication through improved knowledge of the ocean.

      ‘(2) To coordinate and strengthen oceanographic efforts in support of those goals by--

        ‘(A) identifying and carrying out partnerships among Federal agencies, academia, industry, and other members of the oceanographic scientific community in the areas of data, resources, education, and communication; and

        ‘(B) reporting annually to Congress on the program.

‘Sec. 7902. National Ocean Research Leadership Council

    ‘(a) COUNCIL- There is a National Ocean Research Leadership Council (hereinafter in this chapter referred to as the ‘Council’).

    ‘(b) MEMBERSHIP- The Council is composed of the following members:

      ‘(1) The Secretary of the Navy.

      ‘(2) The Administrator of the National Oceanic and Atmospheric Administration.

      ‘(3) The Director of the National Science Foundation.

      ‘(4) The Administrator of the National Aeronautics and Space Administration.

      ‘(5) The Deputy Secretary of Energy.

      ‘(6) The Administrator of the Environmental Protection Agency.

      ‘(7) The Commandant of the Coast Guard.

      ‘(8) The Director of the Geological Survey of the Department of the Interior.

      ‘(9) The Director of the Defense Advanced Research Projects Agency.

      ‘(10) The Director of the Minerals Management Service of the Department of the Interior.

      ‘(11) The President of the National Academy of Sciences, the President of the National Academy of Engineering, and the President of the Institute of Medicine.

      ‘(12) The Director of the Office of Science and Technology.

      ‘(13) The Director of the Office of Management and Budget.

      ‘(14) One member appointed by the chairman from among individuals who will represent the views of ocean industries.

      ‘(15) One member appointed by the chairman from among individuals who will represent the views of State governments.

      ‘(16) One member appointed by the chairman from among individuals who will represent the views of academia.

      ‘(17) One member appointed by the chairman from among individuals who will represent such other views as the chairman considers appropriate.

    ‘(c) CHAIRMAN AND VICE CHAIRMAN- (1) Except as provided in paragraph (2), the chairman and vice chairman of the Council shall be appointed every two years by a selection committee of the Council composed of, at a minimum, the Secretary of the Navy, the Administrator of the National Oceanic and Atmospheric Administration, and the Director of the National Science Foundation. The term of office of the chairman and vice chairman shall be two years. A person who has previously served as chairman or vice chairman may be reappointed.

    ‘(2) The first chairman of the Council shall be the Secretary of the Navy. The first vice chairman of the Council shall be the Administrator of the National Oceanic and Atmospheric Administration.

    ‘(d) TERM OF OFFICE- The term of office of a member of the Council appointed under paragraph (14), (15), (16), or (17) of subsection (b) shall be two years, except that any person appointed to fill a vacancy occurring before the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term.

    ‘(e) RESPONSIBILITIES- The Council shall have the following responsibilities:

      ‘(1) To prescribe policies and procedures to implement the National Oceanographic Partnership Program.

      ‘(2) To review, select, and identify and allocate funds for partnership projects for implementation under the program, based on the following criteria:

        ‘(A) Whether the project addresses critical research objectives or operational goals, such as data accessibility and quality assurance, sharing of resources, education, or communication.

        ‘(B) Whether the project has, or is designed to have, broad participation within the oceanographic community.

        ‘(C) Whether the partners have a long-term commitment to the objectives of the project.

        ‘(D) Whether the resources supporting the project are shared among the partners.

        ‘(E) Whether the project has been subjected to adequate peer review.

      ‘(3) To assess whether there is a need for a facility (or facilities) to provide national centralization of oceanographic data, and to establish such a facility or facilities if determined necessary. In conducting the assessment, the Council shall review, at a minimum, the following:

        ‘(A) The need for a national oceanographic data center.

        ‘(B) The need for a national coastal data center.

        ‘(C) Accessibility by potential users of such centers.

        ‘(D) Preexisting facilities and expertise.

    ‘(f) ANNUAL REPORT- Not later than March 1 of each year, the Council shall submit to Congress a report on the National Oceanographic Partnership Program. The report shall contain the following:

      ‘(1) A description of activities of the program carried out during the fiscal year before the fiscal year in which the report is prepared, together with a list of the members of the Ocean Research Advisory Panel and any working groups in existence during the fiscal year covered.

      ‘(2) A general outline of the activities planned for the program during the fiscal year in which the report is prepared.

      ‘(3) A summary of projects continued from the fiscal year before the fiscal year in which the report is prepared and projects expected to be started during the fiscal year in which the report is prepared and during the following fiscal year.

      ‘(4) A description of the involvement of the program with Federal interagency coordinating entities.

      ‘(5) The amounts requested, in the budget submitted to Congress pursuant to section 1105(a) of title 31, United States Code, for the fiscal year following the fiscal year in which the report is prepared, for the programs, projects, and activities of the program and the estimated expenditures under such programs, projects, and activities during such following fiscal year.

    ‘(g) PARTNERSHIP PROGRAM OFFICE- (1) The Council shall establish a partnership program office for the National Oceanographic Partnership Program. The Council shall use competitive procedures in selecting an operator for the partnership program office.

    ‘(2) The Council shall assign the following duties to the partnership program office:

      ‘(A) To establish and oversee working groups to propose partnership projects to the Council and advise the Council on such projects.

      ‘(B) To manage the process for proposing partnership projects to the Council, including managing peer review of such projects.

      ‘(C) To submit to the Council an annual report on the status of all partnership projects and activities of the office.

      ‘(D) Any additional duties for the administration of the National Oceanographic Partnership Program that the Council considers appropriate.

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

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

    ‘(i) ESTABLISHMENT AND FORMS OF PARTNERSHIP PROJECTS- (1) A partnership project under the National Oceanographic Partnership Program may be established by any instrument that the Council considers appropriate, including a memorandum of understanding, a cooperative research and development agreement, and any similar instrument.

    ‘(2) Projects under the program may include demonstration projects.

‘Sec. 7903. Ocean Research Advisory Panel

    ‘(a) ESTABLISHMENT- The Council shall establish an Ocean Research Advisory Panel consisting of not less than 10 and not more than 18 members appointed by the Council from among persons eminent in the fields of marine science or marine policy, or related fields, and who are representative, at a minimum, of the interests of government, academia, and industry.

    ‘(b) RESPONSIBILITIES- The Council shall assign to the Advisory Panel responsibilities that the Council considers appropriate.’.

    (2) The table of chapters at the beginning of subtitle C of title 10, United States Code, and the table of chapters at the beginning of part IV of such subtitle, are each amended by inserting after the item relating to chapter 663 the following:

7901’.

    (b) INITIAL APPOINTMENTS OF COUNCIL MEMBERS- The Secretary of the Navy shall make the appointments required by section 7902(b) of title 10, United States Code, as added by subsection (a)(1), not later than December 1, 1996.

    (c) INITIAL APPOINTMENTS OF ADVISORY PANEL MEMBERS- The National Ocean Research Leadership Council established by section 7902 of title 10, United States Code, as added by subsection (a)(1), shall make the appointments required by section 7903 of such title not later than January 1, 1997.

    (d) FIRST ANNUAL REPORT OF NATIONAL OCEAN RESEARCH LEADERSHIP COUNCIL- The first annual report required by section 7902(f) of title 10, United States Code, as added by subsection (a)(1), shall be submitted to Congress not later than March 1, 1997. The first report shall include, in addition to the information required by such section, information about the terms of office, procedures, and responsibilities of the Ocean Research Advisory Panel established by the Council.

    (e) AUTHORIZATION- (1) Of the amount authorized to be appropriated to the Department of the Navy by section 201(2), $13,000,000 shall be available for the National Oceanographic Partnership Program established pursuant to section 7901 of title 10, United States Code, as added by subsection (a)(1).

    (2) Of the amount authorized to be appropriated to the Department of the Navy by section 301(2), $7,500,000 shall be available for such program.

    (f) FUNDING FOR PROGRAM OFFICE- Of the amount appropriated for the National Oceanographic Partnership Program for fiscal year 1997, at least $500,000, or 3 percent of the amount appropriated, whichever is greater, shall be available for operations of the partnership program office established pursuant to section 7902(g) of title 10, United States Code, as added by subsection (a)(1), for such fiscal year.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

Sec. 304. Transfer from National Defense Stockpile Transaction Fund.

Sec. 305. Civil Air Patrol Corporation.

Sec. 306. Availability of additional funds for antiterrorism activities.

Sec. 307. Nonlethal weapons capabilities.

Sec. 308. SR-71 contingency reconnaissance force.

Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards to engage in defense-related production and services.

Sec. 312. Test programs for modernization-through-spares.

Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on contractor reimbursement costs for response actions.

Sec. 322. Establishment of separate environmental restoration accounts for each military department.

Sec. 323. Payment of stipulated penalties assessed under CERCLA.

Sec. 324. Shipboard solid waste control.

Sec. 325. Authority to develop and implement land use plans for Defense Environmental Restoration program.

Sec. 326. Pilot program to test alternative technology for limiting air emissions during shipyard blasting and coating operations.

Sec. 327. Agreements for services of other agencies in support of environmental technology certification.

Sec. 328. Repeal of redundant notification and consultation requirements regarding remedial investigations and feasibility studies at certain installations to be closed under the base closure laws.

Sec. 329. Authority for agreements with Indian tribes for services under environmental restoration program.

Sec. 330. Authority to withhold listing of Federal facilities on National Priorities List.

Sec. 331. Clarification of meaning of uncontaminated property for purposes of transfer by the United States.

Sec. 332. Conservation and cultural activities.

Sec. 333. Navy program to monitor ecological effects of organotin.

Sec. 334. Authority to transfer contaminated Federal property before completion of required response actions.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and services to promote efficient operation and management of exchanges and morale, welfare, and recreation activities.

Sec. 342. Noncompetitive procurement of brand-name commercial items for resale in commissary stores.

Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of printing and duplication services.

Sec. 352. Reporting requirements under demonstration project for purchase of fire, security, police, public works, and utility services from local government agencies.

Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting functions.

Sec. 362. Training of members of the uniformed services at non-Government facilities.

Sec. 363. Requirement for preparation of plan for improved operation of working-capital funds and effect of failure to produce an approved plan.

Sec. 364. Increase in capital asset threshold under Defense Business Operations Fund.

Sec. 365. Expansion of authority to donate unusable food.

Sec. 366. Assistance to committees involved in inauguration of the President.

Sec. 367. Department of Defense support for sporting events.

Sec. 368. Storage of motor vehicle in lieu of transportation.

Sec. 369. Security protections at Department of Defense facilities in National Capital Region.

Sec. 370. Administration of midshipmen’s store and other Naval Academy support activities as nonappropriated fund instrumentality.

Sec. 371. Reimbursement under agreement for instruction of civilian students at Foreign Language Institute of the Defense Language Institute.

Sec. 372. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

Sec. 373. Renovation of building for Defense Finance and Accounting Service Center, Fort Benjamin Harrison, Indiana.

Sec. 374. Food donation pilot program at service academies.

Sec. 375. Authority of Air National Guard to provide certain services at Lincoln Municipal Airport, Lincoln, Nebraska.

Sec. 376. Technical amendment regarding Impact Aid program.

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

      (1) For the Army, $18,264,406,000.

      (2) For the Navy, $20,387,737,000.

      (3) For the Marine Corps, $2,421,007,000.

      (4) For the Air Force, $17,635,335,000.

      (5) For Defense-wide activities, $9,912,962,000.

      (6) For the Army Reserve, $1,136,436,000.

      (7) For the Naval Reserve, $858,927,000.

      (8) For the Marine Corps Reserve, $113,367,000.

      (9) For the Air Force Reserve, $1,499,553,000.

      (10) For the Army National Guard, $2,277,477,000.

      (11) For the Air National Guard, $2,711,173,000.

      (12) For the Defense Inspector General, $136,501,000.

      (13) For the United States Court of Appeals for the Armed Forces, $6,797,000.

      (14) For Environmental Restoration, Army, $356,916,000.

      (15) For Environmental Restoration, Navy, $302,900,000.

      (16) For Environmental Restoration, Air Force, $414,700,000.

      (17) For Environmental Restoration, Defense-wide, $258,500,000.

      (18) For Overseas Humanitarian, Disaster, and Civic Aid programs, $54,544,000.

      (19) For Drug Interdiction and Counter-drug Activities, Defense-wide, $796,524,000.

      (20) For the Kaho’olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund, $10,000,000.

      (21) For Medical Programs, Defense, $9,833,288,000.

      (22) For Cooperative Threat Reduction programs, $364,900,000.

      (23) For Domestic Emergency Assistance programs, $97,000,000.

      (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

      (1) For the Defense Business Operations Fund, $947,900,000.

      (2) For the National Defense Sealift Fund, $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1997 from the Armed Forces Retirement Home Trust Fund the sum of $57,300,000 for the operation of the Armed Forces Retirement Home, including the United States Soldiers’ and Airmen’s Home and the Naval Home.

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

    (a) TRANSFER AUTHORITY- To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to operation and maintenance accounts for fiscal year 1997 in amounts as follows:

      (1) For the Army, $50,000,000.

      (2) For the Navy, $50,000,000.

      (3) For the Air Force, $50,000,000.

    (b) TREATMENT OF TRANSFERS- Amounts transferred under this section--

      (1) shall be merged with, and be available for the same purposes and the same period as, the amounts in the accounts to which transferred; and

      (2) may not be expended for an item that has been denied authorization of appropriations by Congress.

    (c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY- The transfer authority provided in this section is in addition to the transfer authority provided in section 1001.

SEC. 305. CIVIL AIR PATROL CORPORATION.

    (a) FUNDING- Of the amount authorized to be appropriated pursuant to section 301 for operation and maintenance, $14,526,000 shall be available for the Civil Air Patrol Corporation.

    (b) AMOUNT FOR CERTAIN OPERATIONS- Of the amount made available to the Civil Air Patrol Corporation pursuant to subsection (a), not less than 25 percent of such amount shall be reserved to cover the costs of search and rescue missions and disaster relief missions.

SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM ACTIVITIES.

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

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

    Of the amount authorized to be appropriated pursuant to section 301, $5,000,000 shall be available for the immediate procurement of nonlethal weapons capabilities to meet existing deficiencies in inventories of such capabilities, of which--

      (1) $2,000,000 shall be available for the Army; and

      (2) $3,000,000 shall be available for the Marine Corps.

SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

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

Subtitle B--Depot-Level Activities

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

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

SEC. 312. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES.

    Not later than 60 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the steps that the Secretary has taken to ensure that each program included in the modernization-through-spares program of the Army is conducted in accordance with--

      (1) the competition requirements in section 2304 of title 10, United States Code;

      (2) the core logistics requirements in section 2464 of such title;

      (3) the public-private competition requirements in section 2469 of such title; and

      (4) requirements relating to contract bundling and spare parts breakout in subsections (a) and (l) of section 15 of the Small Business Act (15 U.S.C. 644) and regulations implementing such subsections in the Defense Federal Acquisition Regulation Supplement.

Subtitle C--Environmental Provisions

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

    Section 2706(d)(1)(A) of title 10, United States Code, is amended by striking out ‘100’ and inserting in lieu thereof ‘20’.

SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION ACCOUNTS FOR EACH MILITARY DEPARTMENT.

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

‘Sec. 2703. Environmental restoration accounts

    ‘(a) ESTABLISHMENT OF ACCOUNTS- There are hereby established in the Department of Defense the following accounts:

      ‘(1) An account to be known as the ‘Environmental Restoration Account, Defense’.

      ‘(2) An account to be known as the ‘Environmental Restoration Account, Army’.

      ‘(3) An account to be known as the ‘Environmental Restoration Account, Navy’.

      ‘(4) An account to be known as the ‘Environmental Restoration Account, Air Force’.

    ‘(b) OBLIGATION OF AUTHORIZED AMOUNTS- Funds authorized for deposit in an account under subsection (a) may be obligated or expended from the account only in order to carry out the environmental restoration functions of the Secretary of Defense and the Secretaries of the military departments under this chapter and under any other provision of law. Funds so authorized shall remain available until expended.

    ‘(c) BUDGET REPORTS- In proposing the budget for any fiscal year pursuant to section 1105 of title 31, United States Code, the President shall set forth separately the amounts requested for environmental restoration programs of the Department of Defense and of each of the military departments under this chapter and under any other Act.

    ‘(d) CREDIT OF AMOUNTS RECOVERED- The following amounts shall be credited to the appropriate environmental restoration account:

      ‘(1) Amounts recovered under CERCLA for response actions.

      ‘(2) Any other amounts recovered from a contractor, insurer, surety, or other person to reimburse the Department of Defense or a military department for any expenditure for environmental response activities.

    ‘(e) PAYMENTS OF FINES AND PENALTIES- None of the funds appropriated to the Environmental Restoration Account, Defense, for fiscal years 1995 through 1999, or to any environmental restoration account of a military department for fiscal years 1997 through 1999, may be used for the payment of a fine or penalty (including any supplemental environmental project carried out as part of such penalty) imposed against the Department of Defense or a military department unless the act or omission for which the fine or penalty is imposed arises out of an activity funded by the environmental restoration account concerned and the payment of the fine or penalty has been specifically authorized by law.’.

    (2) The table of sections at the beginning of chapter 160 of title 10, United States Code, is amended by striking out the item relating to section 2703 and inserting in lieu thereof the following new item:

      ‘2703. Environmental restoration accounts.’.

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

    (c) CONFORMING AMENDMENT- Section 2705(g)(1) of title 10, United States Code, is amended by striking out ‘the Defense Environmental Restoration Account established’ and inserting in lieu thereof ‘the environmental restoration account concerned’.

    (d) TREATMENT OF UNOBLIGATED BALANCES- Any unobligated balances that remain in the Defense Environmental Restoration Account under section 2703(a) of title 10, United States Code, as of the effective date specified in subsection (e) shall be transferred on such date to the Environmental Restoration Account, Defense, established under section 2703(a)(1) of title 10, United States Code (as amended by subsection (a)(1)).

    (e) EFFECTIVE DATE- The amendments made by this section shall take effect on the later of--

      (1) October 1, 1996; or

      (2) the date of the enactment of this Act.

SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

    (a) AUTHORITY- The Secretary of Defense may pay the following:

      (1) Stipulated civil penalties, to the Hazardous Substance Superfund established under section 9507 of the Internal Revenue Code of 1986, in amounts, and using funds, as follows:

        (A) Using funds authorized to be appropriated to the Environmental Restoration Account, Army, established under section 2703(a)(2) of title 10, United States Code (as amended by section 322 of this Act)--

          (i) not more than $34,000 assessed against Fort Riley, Kansas, under CERCLA; and

          (ii) not more than $37,500 assessed against Lake City Army Ammunition Plant, Missouri, under CERCLA.

        (B) Using funds authorized to be appropriated to the Environmental Restoration Account, Navy, established under section 2703(a)(3) of that title, as so amended, not more than $30,000 assessed against the Naval Education and Training Center, Newport, Rhode Island, under CERCLA.

        (C) Using funds authorized to be appropriated to the Environmental Restoration Account, Air Force, established under section 2703(a)(4) of that title, as so amended--

          (i) not more than $55,000 assessed against the Massachusetts Military Reservation, Massachusetts, under CERCLA; and

          (ii) not more than $10,000 assessed against F.E. Warren Air Force Base, Wyoming, under CERCLA.

      (2) Using funds authorized to be appropriated to the Environmental Restoration Account, Air Force, established under section 2703(a)(4) of that title, as so amended, not more than $500,000 to carry out one environmental restoration project, as part of a negotiated agreement in lieu of stipulated penalties assessed under CERCLA against the Massachusetts Military Reservation, Massachusetts.

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

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

    (a) IN GENERAL- Section 3(c) of the Act to Prevent Pollution from Ships (33 U.S.C. 1902(c)) is amended--

      (1) in paragraph (1), by striking out ‘Not later than’ and inserting in lieu thereof ‘Except as provided in paragraphs (2) and (3), not later than’; and

      (2) by striking out paragraphs (2), (3), and (4) and inserting in lieu thereof the following:

    ‘(2)(A) Subject to subparagraph (B), any ship described in subparagraph (C) may discharge, without regard to the special area requirements of Regulation 5 of Annex V to the Convention, the following non-plastic, non-floating garbage:

      ‘(i) A slurry of seawater, paper, cardboard, or food waste that is capable of passing through a screen with openings no larger than 12 millimeters in diameter.

      ‘(ii) Metal and glass that have been shredded and bagged so as to ensure negative buoyancy.

    ‘(B)(i) Garbage described in subparagraph (A)(i) may not be discharged within 3 nautical miles of land.

    ‘(ii) Garbage described in subparagraph (A)(ii) may not be discharged within 12 nautical miles of land.

    ‘(C) This paragraph applies to any ship that is owned or operated by the Department of the Navy that, as determined by the Secretary of the Navy--

      ‘(i) has unique military design, construction, manning, or operating requirements; and

      ‘(ii) cannot fully comply with the special area requirements of Regulation 5 of Annex V to the Convention because compliance is not technologically feasible or would impair the operations or operational capability of the ship.

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

    ‘(B) Subparagraph (A) applies to surface ships that are owned or operated by the Department of the Navy that the Secretary plans to decommission during the period beginning on January 1, 2001, and ending on December 31, 2005.

    ‘(C) At the same time that the Secretary publishes standards under subparagraph (A), the Secretary shall publish in the Federal Register a list of the ships covered by subparagraph (B).’.

    (b) SENSE OF CONGRESS- (1) It is the sense of Congress that it should be an objective of the Navy to achieve full compliance with Annex V to the Convention as part of the Navy’s development of ships that are environmentally sound.

    (2) In this subsection, the terms ‘Convention’ and ‘ship’ have the meanings given such terms in section 2(a) of the Act to Prevent Pollution from Ships (33 U.S.C. 1901(a)).

    (c) REPORT ON COMPLIANCE WITH ANNEX V TO THE CONVENTION- The Secretary of Defense shall include in each report on environmental compliance activities submitted to Congress under section 2706(b) of title 10, United States Code, the following information:

      (1) A list of the ship types, if any, for which the Secretary of the Navy has made the determination referred to in paragraph (2)(C) of section 3(c) of the Act to Prevent Pollution from Ships, as amended by subsection (a)(2) of this section.

      (2) A list of ship types which the Secretary of the Navy has determined can comply with Regulation 5 of Annex V to the Convention.

      (3) A summary of the progress made by the Navy in implementing the requirements of paragraphs (2) and (3) of such section 3(c), as so amended.

      (4) A description of any emerging technologies offering the potential to achieve full compliance with Regulation 5 of Annex V to the Convention.

      (5) The amount and nature of the discharges in special areas, not otherwise authorized under the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.), during the preceding year from ships referred to in section 3(b)(1)(A) of such Act owned or operated by the Department of the Navy.

    (d) PUBLICATION REGARDING SPECIAL AREA DISCHARGES- Subparagraph (A) of section 3(e)(4) of the Act to Prevent Pollution from Ships (33 U.S.C. 1902(e)(4)) is amended to read as follows:

        ‘(A) Each year, the amount and nature of the discharges in special areas, not otherwise authorized under this Act, during the preceding year from ships referred to in subsection (b)(1)(A) of this section owned or operated by the Department of the Navy.’.

SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND USE PLANS FOR DEFENSE ENVIRONMENTAL RESTORATION PROGRAM.

    (a) AUTHORITY- The Secretary of Defense may, to the extent possible and practical, develop and implement, as part of the Defense Environmental Restoration Program provided for in chapter 160 of title 10, United States Code, a land use

plan for any defense site selected by the Secretary under subsection (b).

    (b) SELECTION OF SITES- The Secretary may select up to 10 defense sites, from among sites where the Secretary is planning or implementing environmental restoration activities, for which land use plans may be developed under this section.

    (c) REQUIREMENT TO CONSULT WITH REVIEW COMMITTEE OR ADVISORY BOARD- In developing a land use plan under this section, the Secretary shall consult with a technical review committee established pursuant to section 2705(c) of title 10, United States Code, a restoration advisory board established pursuant to section 2705(d) of such title, a local land use redevelopment authority, or another appropriate State agency.

    (d) 50-YEAR PLANNING PERIOD- A land use plan developed under this section shall cover a period of at least 50 years.

    (e) IMPLEMENTATION- For each defense site for which the Secretary develops a land use plan under this section, the Secretary shall take into account the land use plan in selecting and implementing, in accordance with applicable law, environmental restoration activities at the site.

    (f) DEADLINES- For each defense site for which the Secretary intends to develop a land use plan under this section, the Secretary shall develop a draft land use plan by October 1, 1997, and a final land use plan by March 15, 1998.

    (g) DEFINITION OF DEFENSE SITE- For purposes of this section, the term ‘defense site’ means (A) any building, structure, installation, equipment, pipe or pipeline (including any pipe into a sewer or publicly owned treatment works), well, pit, pond, lagoon, impoundment, ditch, landfill, storage container, motor vehicle, rolling stock, or aircraft under the jurisdiction of the Department of Defense, or (B) any site or area under the jurisdiction of the Department of Defense where a hazardous substance has been deposited, stored, disposed of, or placed, or otherwise come to be located; but does not include any consumer product in consumer use or any vessel.

    (h) REPORT- In the annual report required under section 2706(a) of title 10, United States Code, the Secretary shall include information on the land use plans developed under this section and the effect such plans have had on environmental restoration activities at the defense sites where they have been implemented. The annual report submitted in 1999 shall include recommendations on whether such land use plans should be developed and implemented throughout the Department of Defense.

    (i) SAVINGS PROVISIONS- (1) Nothing in this section, or in a land use plan developed under this section with respect to a defense site, shall be construed as requiring any modification to a land use plan that was developed before the date of the enactment of this Act.

    (2) Nothing in this section may be construed to affect statutory requirements for an environmental restoration or waste management activity or project or to modify or otherwise affect applicable statutory or regulatory environmental restoration and waste management requirements, including substantive standards intended to protect public health and the environment, nor shall anything in this section be construed to preempt or impair any local land use planning or zoning authority or State authority.

SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR LIMITING AIR EMISSIONS DURING SHIPYARD BLASTING AND COATING OPERATIONS.

    (a) DETERMINATION BY SECRETARY OF THE NAVY- (1) The Secretary of the Navy shall make a determination whether the alternative technology described in paragraph (2) has the clear potential for significant benefit to the Navy. The Secretary shall submit to Congress a notification in writing of the determination not later than 60 days after the date of the enactment of this Act.

    (2) The technology referred to in paragraph (1) is an alternative technology designed to capture and destroy or remove particulate emissions and volatile air pollutants that occur during abrasive blasting and coating operations at naval shipyards.

    (b) PILOT PROGRAM- If the determination made under subsection (a)(1) is in the affirmative, the Secretary shall establish a pilot program to test the alternative technology. In conducting the test, the Secretary shall seek to demonstrate whether the technology is valid, cost effective, and in compliance with environmental laws and regulations.

    (c) REPORT- Upon completion of the test conducted under the pilot program, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report setting forth in detail the results of the test. The report shall include recommendations on whether the alternative technology merits implementation at naval shipyards and such other recommendations as the Secretary considers appropriate.

SEC. 327. AGREEMENTS FOR SERVICES OF OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION.

    (a) AUTHORITY- Subject to subsection (b), the Secretary of Defense may enter into a cooperative agreement with an agency of a State or local government to obtain assistance in certifying environmental technologies.

    (b) LIMITATIONS- The Secretary of Defense may enter into a cooperative agreement with respect to an environmental technology under subsection (a) only if the Secretary determines--

      (1) that the technology has clear potential to be of significant value to the Department of Defense in carrying out its environmental restoration activities; and

      (2) that there is no reasonably available market in the private sector for the technology without a certification by the Department of Defense, the Environmental Protection Agency, or a State environmental agency.

    (c) TYPES OF ASSISTANCE- The types of assistance that may be obtained under subsection (a) include the following:

      (1) Data collection and analysis.

      (2) Technical assistance in conducting a demonstration of an environmental technology, including the implementation of quality assurance and quality control programs.

    (d) REPORT- In the annual report required under section 2706(a) of title 10, United States Code, the Secretary of Defense shall include the following information with respect to cooperative agreements entered into under this section:

      (1) The number of such agreements.

      (2) The number of States in which such agreements have been entered into.

      (3) A description of the nature of the technology involved in each such agreement.

      (4) The amount of funds obligated or expended by the Department of Defense for each such agreement during the year covered by the report.

    (e) TERMINATION OF AUTHORITY- The authority provided under subsection (a) shall terminate five years after the date of the enactment of this Act.

SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND CONSULTATION REQUIREMENTS REGARDING REMEDIAL INVESTIGATIONS AND FEASIBILITY STUDIES AT CERTAIN INSTALLATIONS TO BE CLOSED UNDER THE BASE CLOSURE LAWS.

    Section 334 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 U.S.C. 2687 note) is repealed.

SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    Section 2701(d) of title 10, United States Code, is amended--

      (1) in the first sentence of paragraph (1), by striking out ‘, or with any State or local government agency,’ and inserting in lieu thereof ‘, with any State or local government agency, or with any Indian tribe,’; and

      (2) by adding at the end the following:

      ‘(3) DEFINITION- In this subsection, the term ‘Indian tribe’ has the meaning given such term in section 101(36) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(36)).’.

SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON NATIONAL PRIORITIES LIST.

    Section 120(d) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is amended--

      (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

      (2) by striking out ‘Not later than 18 months after the enactment of the Superfund Amendments and Reauthorization Act of 1986, the Administrator’ and inserting in lieu thereof the following:

      ‘(1) IN GENERAL- The Administrator’;

      (3) by moving the remainder of the text of paragraph (1), as designated by paragraph (2) of this section (including subparagraphs (A) and (B), as redesignated by paragraph (1) of this section) 2 ems to the right; and

      (4) by striking out ‘Such criteria’ and all that follows through the end of the subsection and inserting in lieu thereof the following:

      ‘(2) APPLICATION OF CRITERIA-

        ‘(A) IN GENERAL- Subject to subparagraph (B), the criteria referred to in paragraph (1) shall be applied in the same manner as the criteria are applied to facilities that are owned or operated by persons other than the United States.

        ‘(B) RESPONSE UNDER OTHER LAW- It shall be an appropriate factor to be taken into consideration for the purposes of section 105(a)(8)(A) that the head of the department, agency, or instrumentality that owns or operates a facility has arranged with the Administrator or appropriate State authorities to respond appropriately, under authority of a law other than this Act, to a release or threatened release of a hazardous substance.

      ‘(3) COMPLETION- Evaluation and listing under this subsection shall be completed in accordance with a reasonable schedule established by the Administrator.’.

SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR PURPOSES OF TRANSFER BY THE UNITED STATES.

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

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

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

‘Sec. 2694. Conservation and cultural activities

    ‘(a) ESTABLISHMENT- The Secretary of Defense may establish and carry out a program to conduct and manage in a coordinated manner the conservation and cultural activities described in subsection (b).

    ‘(b) ACTIVITIES- (1) A conservation or cultural activity eligible for the program that the Secretary establishes under subsection (a) is any activity--

      ‘(A) that has regional or Department of Defense-wide significance and that involves more than one military department;

      ‘(B) that is necessary to meet legal requirements or to support military operations;

      ‘(C) that can be more effectively managed at the Department of Defense level; and

      ‘(D) for which no executive ageny has been designated responsible by the Secretary.

    ‘(2) Such activities include the following:

      ‘(A) The development of ecosystem-wide land management plans.

      ‘(B) The conduct of wildlife studies to ensure the safety of military operations.

      ‘(C) The identification and return of Native American human remains and cultural items in the possession or control of the Department of Defense, or discovered on land under the jurisdiction of the Department, to the appropriate Native American tribes.

      ‘(D) The control of invasive species that may hinder military activities or degrade military training ranges.

      ‘(E) The establishment of a regional curation system for artifacts found on military installations.

    ‘(c) COOPERATIVE AGREEMENTS- The Secretary may negotiate and enter into cooperative agreements with public and private agencies, organizations, institutions, individuals, or other entities to carry out the program established under subsection (a).

    ‘(d) EFFECT ON OTHER LAWS- Nothing in this section shall be construed or interpreted as preempting any otherwise applicable Federal, State, or local law or regulation relating to the management of natural and cultural resources on military installations.’.

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

      ‘2694. Conservation and cultural activities.’.

    (b) EFFECTIVE DATE- Section 2694 of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 1996.

SEC. 333. NAVY PROGRAM TO MONITOR ECOLOGICAL EFFECTS OF ORGANOTIN.

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

    (b) FUNDING- The Administrator of the Environmental Protection Agency shall provide, in advance, such sums as are necessary to the Secretary of the Navy for the costs of developing and implementing the program under subsection (a).

    (c) WRITTEN AGREEMENT- The Secretary of the Navy and the Administrator of the Environmental Protection Agency shall enter into a written agreement setting forth the actions that the Secretary plans to take under subsection (a) and the funding that the Administrator agrees to provide under subsection (b). If the Secretary determines that the Administrator will not enter into such an agreement, the Secretary shall notify the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate not later than 30 days after such determination.

    (d) NONIMPAIRMENT OF MISSION- Compliance with subsection (a) shall be conducted in such a manner so as not to impair the ability of the Department of the Navy to meet its operational requirements.

    (e) REPORT- Not later than June 1, 1997, the Secretary of the Navy shall submit to Congress a report containing the following:

      (1) A description of the monitoring program developed pursuant to subsection (a).

      (2) An analysis of the results of the monitoring program as of the date of the submission of the report.

      (3) Information about the progress of Navy programs, referred to in section 7(c) of the Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the laboratory toxicity and environmental risks associated with the use of antifouling paints containing organotin.

      (4) An assessment, developed in consultation with the Administrator of the Environmental Protection Agency, of the effectiveness of existing laws and rules concerning organotin compounds in ensuring protection of human health and the environment.

    (f) SENSE OF CONGRESS- (1) It is the sense of Congress that the Administrator of the Environmental Protection Agency, in consultation with the Secretary of the Navy, should develop, for purposes of the national pollutant discharge elimination system, a model permit for the discharge of organotin compounds at shipbuilding and ship repair facilities.

    (2) For purposes of this subsection, the term ‘organotin’ has the meaning provided in section 3 of the Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2402).

    (g) TERMINATION- The program required by subsection (a) shall terminate five years after the date of the enactment of this Act.

SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY BEFORE COMPLETION OF REQUIRED RESPONSE ACTIONS.

    (a) IN GENERAL- Section 120(h)(3) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(3)) is amended--

      (1) by redesignating subparagraph (A) as clause (i) and clauses (i), (ii), and (iii) of that subparagraph as subclauses (I), (II), and (III), respectively;

      (2) by striking out ‘After the last day’ and inserting in lieu thereof the following:

        ‘(A) IN GENERAL- After the last day’;

      (3) by redesignating subparagraph (B) as clause (ii) and clauses (i) and (ii) of that subparagraph as subclauses (I) and (II), respectively;

      (4) by redesignating subparagraph (C) as clause (iii);

      (5) by moving the remainder of the text of subparagraph (A), as designated by paragraph (2) of this subsection (including the clauses and subclauses redesignated

by paragraphs (1), (3), and (4) of this subsection) 2 ems to the right;

      (6) by striking ‘For purposes of subparagraph (B)(i)’ and inserting the following:

        ‘(B) COVENANT REQUIREMENTS- For purposes of subparagraphs (A)(ii)(I) and (C)(iii)’;

      (7) in subparagraph (B), as designated by paragraph (5), by striking ‘subparagraph (B)’ each place it appears and inserting ‘subparagraph (A)(ii)’; and

      (8) by adding at the end the following:

        ‘(C) DEFERRAL-

          ‘(i) IN GENERAL- The Administrator, with the concurrence of the Governor of the State in which the facility is located (in the case of real property at a Federal facility that is listed on the National Priorities List), or the Governor of the State in which the facility is located (in the case of real property at a Federal facility not listed on the National Priorities List) may defer the requirement of subparagraph (A)(ii)(I) with respect to the property if the Administrator or the Governor, as the case may be, determines that the property is suitable for transfer, based on a finding that--

            ‘(I) the property is suitable for transfer for the use intended by the transferee, and the intended use is consistent with protection of human health and the environment;

            ‘(II) the deed or other agreement proposed to govern the transfer between the United States and the transferee of the property contains the assurances set forth in clause (ii);

            ‘(III) the Federal agency requesting deferral has provided notice, by publication in a newspaper of general circulation in the vicinity of the property, of the proposed transfer and of the opportunity for the public to submit, within a period of not less than 30 days after the date of the notice, written comments on the suitability of the property for transfer; and

            ‘(IV) the deferral and the transfer of the property will not substantially delay any necessary response action at the property.

          ‘(ii) RESPONSE ACTION ASSURANCES- With regard to a release or threatened release of a hazardous substance for which a Federal agency is potentially responsible under this section, the deed or other agreement proposed to govern the transfer shall contain assurances that--

            ‘(I) provide for any necessary restrictions on the use of the property to ensure the protection of human health and the environment;

            ‘(II) provide that there will be restrictions on use necessary to ensure that required remedial investigations, response action, and oversight activities will not be disrupted;

            ‘(III) provide that all necessary response action will be taken and identify the schedules for investigation and completion of all necessary response action as approved by the appropriate regulatory agency; and

            ‘(IV) provide that the Federal agency responsible for the property subject to transfer will submit a budget request to the Director of the Office of Management and Budget that adequately addresses schedules for investigation and completion of all necessary response action, subject to congressional authorizations and appropriations.

          ‘(iii) WARRANTY- When all response action necessary to protect human health and the environment with respect to any substance remaining on the property on the date of transfer has been taken, the United States shall execute and deliver to the transferee an appropriate document containing a warranty that all such response action has been taken, and the making of the warranty shall be considered to satisfy the requirement of subparagraph (A)(ii)(I).

          ‘(iv) FEDERAL RESPONSIBILITY- A deferral under this subparagraph shall not increase, diminish, or affect in any manner any rights or obligations of a Federal agency (including any rights or obligations under sections 106, 107, and 120 existing prior to transfer) with respect to a property transferred under this subparagraph.’.

    (b) CONTINUED APPLICATION OF STATE LAW- The first sentence of section 120(a)(4) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is amended by inserting ‘or facilities that are the subject of a deferral under subsection (h)(3)(C)’ after ‘United States’.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

    (a) CONTRACTS TO PROMOTE EFFICIENT OPERATION AND MANAGEMENT- (1) Chapter 147 of title 10, United States Code, is amended by inserting after section 2482 the following new section:

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

    ‘An agency or instrumentality of the Department of Defense that supports the operation of the exchange system, or the operation of a morale, welfare, and recreation system, of the Department of Defense may enter into a contract or other

agreement with another element of the Department of Defense or with another Federal department, agency, or instrumentality to provide or obtain goods and services beneficial to the efficient management and operation of the exchange system or that morale, welfare, and recreation system.’.

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

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

    (b) CONFORMING AMENDMENT REGARDING COMMISSARY SYSTEM- Section 2482(b)(1) of such title is amended by striking out ‘another department’ and all that follows through ‘provide services’ and inserting in lieu thereof ‘another element of the Department of Defense or with another Federal department, agency, or instrumentality to provide or obtain services’.

SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

    (a) CLARIFICATION OF EXCEPTION TO COMPETITIVE PROCUREMENT- Section 2486 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(e) The Secretary of Defense may not use the exception provided in section 2304(c)(5) of this title regarding the procurement of a brand-name commercial item for resale in commissary stores unless the commercial item is regularly sold outside of commissary stores under the same brand name as the name by which the commercial item will be sold in commissary stores.’.

    (b) EFFECT ON EXISTING CONTRACTS OR OTHER AGREEMENTS- Section 2486(e) of title 10, United States Code, as added by subsection (a), shall not affect the terms, conditions, or duration of any contract or other agreement entered into by the Secretary of Defense before the date of the enactment of this Act for the procurement of commercial items for resale in commissary stores.

SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT MATERIAL.

    (a) IN GENERAL- (1) Chapter 147 of title 10, United States Code, is amended by inserting after section 2489 the following new section:

‘Sec. 2489a. Sale or rental of sexually explicit material pro-hibited

    ‘(a) PROHIBITION OF SALE OR RENTAL- The Secretary of Defense may not permit the sale or rental of sexually explicit material on property under the jurisdiction of the Department of Defense.

    ‘(b) PROHIBITION OF OFFICIALLY PROVIDED SEXUALLY EXPLICIT MATERIAL- A member of the armed forces or a civilian officer or employee of the Department of Defense acting in an official capacity may not provide for sale, remuneration, or rental sexually explicit material to another person.

    ‘(c) REGULATIONS- The Secretary of Defense shall prescribe regulations to implement this section.

    ‘(d) DEFINITIONS- In this section:

      ‘(1) The term ‘sexually explicit material’ means an audio recording, a film or video recording, or a periodical with visual depictions, produced in any medium, the dominant theme of which depicts or describes nudity, including sexual or excretory activities or organs, in a lascivious way.

      ‘(2) The term ‘property under the jurisdiction of the Department of Defense’ includes commissaries, all facilities operated by the Army and Air Force Exchange Service, the Navy Exchange Service Command, the Navy Resale and Services Support Office, Marine Corps exchanges, and ships’ stores.’.

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

      ‘2489a. Sale or rental of sexually explicit material prohibited.’.

    (b) EFFECTIVE DATE- Subsection (a) of section 2489a of title 10, United States Code, as added by subsection (a) of this section, shall take effect 90 days after the date of the enactment of this Act.

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

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

    (a) EXTENSION- Section 351(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended by striking out ‘fiscal year 1996’ and inserting in lieu thereof ‘fiscal years 1996 and 1997’.

    (b) REPORTING REQUIREMENTS- Such section is further amended by adding at the end the following new subsection:

    ‘(c) REPORTING REQUIREMENTS- (1) Not later than 90 days after the end of each fiscal year in which the requirement of subsection (a) applies, the Secretary of Defense shall submit to Congress a report--

      ‘(A) describing the extent of the compliance of the Secretary with the requirement during that fiscal year;

      ‘(B) specifying the total volume of printing and duplication services procured by the Department of Defense during that fiscal year--

        ‘(i) from sources within the Department of Defense;

        ‘(ii) from private-sector sources; and

        ‘(iii) from other sources in the Federal Govern-ment; and

      ‘(C) specifying the total volume of printed and duplicated material during that fiscal year covered by the exception in subsection (b).

    ‘(2) The report required for fiscal year 1996 shall also include the plans of the Secretary for further implementation of the requirement of subsection (a) during fiscal year 1997.’.

SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL GOVERNMENT AGENCIES.

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

Subtitle F--Other Matters

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

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

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

    ‘(a) PROVISION OF MEALS AND REFRESHMENTS- Under regulations prescribed by the Secretary concerned, funds appropriated to the Department of Defense for recruitment of military personnel may be expended for small meals and refreshments during recruiting functions for the following persons:

      ‘(1) Persons who have enlisted under the Delayed Entry Program authorized by section 513 of this title.

      ‘(2) Persons who are objects of armed forces recruiting efforts.

      ‘(3) Persons whose assistance in recruiting efforts of the military departments is determined to be influential by the Secretary concerned.

      ‘(4) Members of the armed forces and Federal employees when attending recruiting events in accordance with a requirement to do so.

      ‘(5) Other persons whose presence at recruiting efforts will contribute to recruiting efforts.

    ‘(b) ANNUAL REPORT- Not later than February 1 of each of the years 1998 through 2002, the Secretary of Defense shall submit to Congress a report on the extent to which the authority under subsection (a) was exercised during the fiscal year ending in the preceding year.

    ‘(c) TERMINATION OF AUTHORITY- The authority in subsection (a) may not be exercised after September 30, 2001.’.

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

      ‘520c. Recruiting functions: use of funds.’.

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

    (a) AUTHORITY TO ENTER INTO AGREEMENTS FOR TRAINING AT NON-GOVERNMENT FACILITIES- (1) Chapter 101 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2013. Training at non-Government facilities

    ‘(a) AUTHORITY TO ENTER INTO AGREEMENTS- (1) The Secretary concerned, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), may make agreements or other arrangements for the training of members of the uniformed services under the jurisdiction of that Secretary by, in, or through non-Government facilities.

    ‘(2) In this section, the term ‘non-Government facility’ means any of the following:

      ‘(A) The government of a State or of a territory or possession of the United States, including the Commonwealth of Puerto Rico, an interstate governmental organization, and a unit, subdivision, or instrumentality of any of the foregoing.

      ‘(B) A foreign government or international organization, or instrumentality of either, which is designated by the President as eligible to provide training under this section.

      ‘(C) A medical, scientific, technical, educational, research, or professional institution, foundation, or organization.

      ‘(D) A business, commercial, or industrial firm, corporation, partnership, proprietorship, or other organization.

      ‘(E) Individuals other than civilian or military personnel of the Government.

      ‘(F) The services and property of any of the foregoing providing the training.

    ‘(b) EXPENSES- The Secretary concerned, from appropriations or other funds available to the Secretary, may--

      ‘(1) pay all or a part of the pay of a member of a uniformed service who is selected and assigned for training under this section, for the period of training; and

      ‘(2) pay, or reimburse the member of a uniformed service for, all or a part of the necessary expenses of the training (without regard to subsections (a) and (b) of section 3324 of title 31), including among those expenses the necessary costs of the following:

        ‘(A) Travel and per diem instead of subsistence under sections 404 and 405 of title 37 and the Joint Travel Regulations for the Uniformed Services.

        ‘(B) Transportation of immediate family, household goods and personal effects, packing, crating, temporarily storing, draying, and unpacking under sections 406 and 409 of title 37 and the Joint Travel Regulations for the Uniformed Services when the estimated costs of transportation and related services are less than the estimated aggregate per diem payments for the period of training.

        ‘(C) Tuition and matriculation fees.

        ‘(D) Library and laboratory services.

        ‘(E) Purchase or rental of books, materials, and supplies.

        ‘(F) Other services or facilities directly related to the training of the member.

    ‘(c) CERTAIN EXPENSES EXCLUDED- The expenses of training do not include membership fees except to the extent that the fee is a necessary cost directly related to the training itself or that payment of the fee is a condition precedent to undergoing the training.’.

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

      ‘2013. Training at non-Government facilities.’.

    (b) EFFECTIVE DATE- Section 2013 of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 1996.

SEC. 363. REQUIREMENT FOR PREPARATION OF PLAN FOR IMPROVED OPERATION OF WORKING-CAPITAL FUNDS AND EFFECT OF FAILURE TO PRODUCE AN APPROVED PLAN.

    (a) PLAN FOR IMPROVED OPERATION OF WORKING-CAPITAL FUNDS- Not later than September 30, 1997, the Secretary of Defense shall submit to Congress a plan to improve the management and performance of the industrial, commercial, and support type activities of the military departments or the Defense Agencies that are currently managed through the Defense Business Operations Fund.

    (b) ELEMENTS OF PLAN- The plan required by subsection (a) shall address the following issues:

      (1) The ability of each military department or Defense Agency to set working capital requirements and set charges at its own industrial and supply activities.

      (2) The desirability of separate business accounts for the management of both industrial and supply activities for each military department or Defense Agency.

      (3) Liability for operation losses at industrial and supply activities.

      (4) Reimbursement to the Department of Defense by each military department or Defense Agency of its fair share of the costs of legitimate common business support services (such as accounting and financial services and central logistics services) provided by the Department of Defense.

      (5) The role of the Department of Defense in setting charges or imposing surcharges for activities managed by the business accounts of a military department or Defense Agency (except for the common business support cost described in paragraph (4)), and what such charges should properly reflect.

      (6) The appropriate use of operating profits arising from the operations of the industrial and supply activities of a military department or Defense Agency.

      (7) The ability of a military department or Defense Agency to purchase industrial and supply services from, and provide such services to, other military departments or Defense Agencies.

      (8) Standardization of financial management and accounting practices employed by the business accounts of a military department or Defense Agency.

      (9) Reporting requirements related to actual and projected performance of business management account activities of a military department or Defense Agency.

    (c) EFFECT OF FAILURE TO SUBMIT OR APPROVE OF PLAN- (1) Unless, before October 1, 1999, the Secretary of Defense submits the plan required by subsection (a) and Congress enacts a provision of law described in paragraph (2) that approves of the plan as submitted or in an amended form, then section 2216a of title 10, United States Code, regarding the Defense Business Operations Fund (as redesignated by section 1074(a)(10) of this Act), shall be repealed effective as of that date.

    (2) The provision of law referred to in paragraph (1) is a provision of law that--

      (A) is enacted after the submission of the plan required by subsection (a);

      (B) specifically refers to the plan and this section; and

      (C) specifically states that the plan required by subsection (a) is approved as submitted or with such amendments as may be contained in such law.

    (d) BASIS FOR CHARGES FOR GOODS AND SERVICES; COMPTROLLER GENERAL REVIEW- (1) In the development of the proposed budget for the Defense Business Operations Fund for a fiscal year, the Secretary of Defense shall ensure that accurate and realistic pricing and quantity estimates are used regarding the goods and services to be provided by working-capital funds and industrial, commercial, and support type activities managed through the Fund.

    (2) The Secretary of Defense shall make available to the Comptroller General information used to establish the charges for goods and services to be provided by working-capital funds and industrial, commercial, and support type activities managed through the Fund. The Comptroller General shall conduct an annual review of the adequacy of the basis for the charges. Not later than 30 days after the date on which the Secretary submits the annual report and proposed budget for the Fund under subsection (h) of section 2216a of title 10, United States Code, as redesignated by section 1074(a)(10) of this Act, the Comptroller General shall submit to Congress a report containing the results of the review.

SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE BUSINESS OPERATIONS FUND.

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

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

    (a) AUTHORITY FOR DONATIONS FROM DEFENSE AGENCIES- Section 2485 of title 10, United States Code, is amended by striking out ‘Secretary of a military department’ in subsections (a) and (b) and inserting in lieu thereof ‘Secretary of Defense’.

    (b) EXPANSION OF ELIGIBLE RECIPIENTS- Such section is further amended--

      (1) in subsection (a), by striking out ‘authorized charitable nonprofit food banks’ and inserting in lieu thereof ‘entities specified under subsection (d)’; and

      (2) in subsection (d), by striking out ‘may only be made’ and all that follows and inserting in lieu thereof the

following: ‘may only be made to an entity that is one of the following:

      ‘(1) A charitable nonprofit food bank that is designated by the Secretary of Defense or the Secretary of Health and Human Services as authorized to receive such donations.

      ‘(2) A State or local agency that is designated by the Secretary of Defense or the Secretary of Health and Human Services as authorized to receive such donations.

      ‘(3) A chapter or other local unit of a recognized national veterans organization that provides services to persons without adequate shelter and is designated by the Secretary of Veterans Affairs as authorized to receive such donations.

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

    (c) CLARIFICATION OF FOOD THAT MAY BE DONATED- Subsection (b) of such section is further amended by inserting ‘rations known as humanitarian daily rations (HDRs),’ after ‘(MREs),’.

SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE PRESIDENT.

    (a) IN GENERAL- Section 2543 of title 10, United States Code, is amended to read as follows:

‘Sec. 2543. Equipment and services: Presidential inaugural ceremonies

    ‘(a) ASSISTANCE AUTHORIZED- The Secretary of Defense may, with respect to the ceremonies relating to the inaugu-ration of a President, provide the assistance referred to in subsection (b) to--

      ‘(1) the Presidential Inaugural Committee; and

      ‘(2) the congressional Joint Inaugural Committee.

    ‘(b) ASSISTANCE- Assistance that may be provided under subsection (a) is the following:

      ‘(1) Planning and carrying out activities relating to security and safety.

      ‘(2) Planning and carrying out ceremonial activities.

      ‘(3) Loan of property.

      ‘(4) Any other assistance that the Secretary considers appropriate.

    ‘(c) REIMBURSEMENT- (1) The Presidential Inaugural Committee shall reimburse the Secretary for any costs incurred in connection with the provision to the committee of assistance referred to in subsection (b)(4).

    ‘(2) Costs reimbursed under paragraph (1) shall be credited to the appropriations from which the costs were paid. The amount credited to an appropriation shall be proportionate to the amount of the costs charged to that appropriation.

    ‘(d) LOANED PROPERTY- With respect to property loaned for a presidential inauguration under subsection (b)(3), the Presidential Inaugural Committee shall--

      ‘(1) return that property within nine days after the date of the ceremony inaugurating the President;

      ‘(2) give good and sufficient bond for the return in good order and condition of that property;

      ‘(3) indemnify the United States for any loss of, or damage to, that property; and

      ‘(4) defray any expense incurred for the delivery, return, rehabilitation, replacement, or operation of that property.

    ‘(e) DEFINITIONS- In this section:

      ‘(1) The term ‘Presidential Inaugural Committee’ means the committee referred to in subsection (b)(2) of the first section of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721) that is appointed with respect to the inauguration of a President-elect and Vice President-elect.

      ‘(2) The term ‘congressional Joint Inaugural Committee’ means the joint committee of the Senate and House of Representatives referred to in the proviso in section 9 of the Presidential Inaugural Ceremonies Act (36 U.S.C. 729) that is appointed with respect to the inauguration of a President-elect and Vice President-elect.’.

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

      ‘2543. Equipment and services: Presidential inaugural ceremonies.’.

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

    (a) AUTHORITY TO PROVIDE SUPPORT- Subchapter II of chapter 152 of title 10, United States Code, is amended by adding at the end the following new section:

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

    ‘(a) SECURITY AND SAFETY ASSISTANCE- At the request of a Federal, State, or local government agency responsible for providing law enforcement services, security services, or safety services, the Secretary of Defense may authorize the commander of a military installation or other facility of the Department of Defense or the commander of a specified or unified combatant command to provide assistance for the World Cup Soccer Games, the Goodwill Games, the Olympics, and any other civilian sporting event in support of essential security and safety at such event, but only if the Attorney General certifies that such assistance is necessary to meet essential security and safety needs.

    ‘(b) OTHER ASSISTANCE- The Secretary of Defense may authorize a commander referred to in subsection (a) to provide assistance for a sporting event referred to in that subsection in support of other needs relating to such event, but only--

      ‘(1) to the extent that such needs cannot reasonably be met by a source other than the Department;

      ‘(2) to the extent that the provision of such assistance does not adversely affect the military preparedness of the armed forces; and

      ‘(3) if the organization requesting such assistance agrees to reimburse the Department for amounts expended by the Department in providing the assistance in accordance with the provisions of section 377 of this title and other applicable provisions of law.

    ‘(c) INAPPLICABILITY TO CERTAIN EVENTS- Subsections (a) and (b) do not apply to the following sporting events:

      ‘(1) Sporting events for which funds have been appropriated before the date of the enactment of this Act.

      ‘(2) The Special Olympics.

      ‘(3) The Paralympics.

    ‘(d) TERMS AND CONDITIONS- The Secretary of Defense may require such terms and conditions in connection with the provision of assistance under this section as the Secretary considers necessary and appropriate to protect the interests of the United States.

    ‘(e) REPORT ON ASSISTANCE- Not later than January 30 of each year following a year in which the Secretary of Defense provides assistance under this section, the Secretary shall submit to Congress a report on the assistance provided. The report shall set forth--

      ‘(1) a description of the assistance provided;

      ‘(2) the amount expended by the Department in providing the assistance;

      ‘(3) if the assistance was provided under subsection (a), the certification of the Attorney General with respect to the assistance under that subsection; and

      ‘(4) if the assistance was provided under subsection (b)--

        ‘(A) an explanation why the assistance could not reasonably be met by a source other than the Department; and

        ‘(B) the amount the Department was reimbursed under that subsection.

    ‘(f) RELATIONSHIP TO OTHER LAWS- Assistance provided under this section shall be subject to the provisions of sections 375 and 376 of this title.’.

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

      ‘2554. Provision of support for certain sporting events.’.

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

    (a) STORAGE AUTHORIZED- (1) Section 2634 of title 10, United States Code, is amended--

      (A) by redesignating subsection (b) as subsection (g);

      (B) by transferring subsection (g), as so redesignated, to the end of such section; and

      (C) by inserting after subsection (a) the following new subsection:

    ‘(b)(1) In lieu of transportation authorized by this section, if a member is ordered to make a change of permanent station to a foreign country and the laws, regulations, or other restrictions imposed by the foreign country or the United States preclude entry of a motor vehicle described in subsection (a) into that country, or would require extensive modification of the vehicle as a condition to entry, the member may elect to have the vehicle stored at the expense of the United States at a location approved by the Secretary concerned.

    ‘(2) If a member is transferred or assigned in connection with a contingency operation to duty at a location other than the permanent station of the member for a period of more than 30 consecutive days, but the transfer or assignment is not considered a change of permanent station, the member may elect to have a motor vehicle described in subsection (a) stored at the expense of the United States at a location approved by the Secretary concerned.

    ‘(3) Authorized expenses under this subsection include costs associated with the delivery of the motor vehicle for storage and removal of the vehicle for delivery to a destination approved by the Secretary concerned.’.

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

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

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

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

    (b) CONFORMING AMENDMENT- Subparagraph (B) of section 406(h)(1) of title 37, United States Code, is amended to read as follows:

      ‘(B) in the case of a member described in paragraph (2)(A), authorize the transportation of one motor vehicle, which is owned or leased by the member (or a dependent of the member) and is for the personal use of a dependent of the member, to that location by means of transportation authorized under section 2634 of title 10 or authorize the storage of the motor vehicle pursuant to subsection (b) of such section.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on April 1, 1997.

SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE FACILITIES IN NATIONAL CAPITAL REGION.

    (a) EXPANSION OF AUTHORITY- Subsection (b) of section 2674 of title 10, United States Code, is amended by striking out ‘at the Pentagon Reservation’ and inserting in lieu thereof ‘in the National Capital Region’.

    (b) CLERICAL AMENDMENTS- (1) The heading of such section is amended to read as follows:

‘Sec. 2674. Operation and control of Pentagon Reservation and defense facilities in National Capital Region’.

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

      ‘2674. Operation and control of Pentagon Reservation and defense facilities in National Capital Region.’.

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

    (a) IN GENERAL- Section 6971 of title 10, United States Code, is amended to read as follows:

‘Sec. 6971. Midshipmen’s store, trade shops, dairy, and laundry: nonappropriated fund instrumentality and accounts

    ‘(a) OPERATION AS NONAPPROPRIATED FUND INSTRUMENTALITY- The Superintendent of the Naval Academy shall operate the Naval Academy activities referred to in subsection (b) as a nonappropriated fund instrumentality under the jurisdiction of the Navy.

    ‘(b) COVERED ACTIVITIES- The nonappropriated fund instrumentality required under subsection (a) shall consist of the following Naval Academy activities:

      ‘(1) The midshipmen’s store.

      ‘(2) The barber shop.

      ‘(3) The cobbler shop.

      ‘(4) The tailor shop.

      ‘(5) The dairy.

      ‘(6) The laundry.

    ‘(c) NONAPPROPRIATED FUND ACCOUNTS- The Superintendent of the Naval Academy shall administer a separate nonappropriated fund account for each of the Naval Academy activities included in the nonappropriated fund instrumentality required under subsection (a).

    ‘(d) CREDITING OF REVENUE- The Superintendent shall credit all revenue received from a Naval Academy activity referred to in subsection (b) to the account administered with respect to that activity under subsection (c), and amounts so credited shall be available for operating expenses of that activity.

    ‘(e) REGULATIONS- This section shall be carried out under regulations prescribed by the Secretary of the Navy.’.

    (b) CIVIL SERVICE EMPLOYMENT STATUS OF EMPLOYEES OF COVERED ACTIVITIES- Section 2105(b) of title 5, United States Code, is amended--

      (1) by inserting ‘who is’ after ‘An individual’; and

      (2) by inserting ‘and whose employment in such a position began before October 1, 1996, and has been uninterrupted in such a position since that date’ after ‘Academy dairy,’.

    (c) CONFORMING REPEAL- Section 6970 of title 10, United States Code, is repealed.

    (d) CLERICAL AMENDMENTS- The table of sections at the beginning of chapter 603 of title 10, United States Code, is amended by striking out the items relating to sections 6970 and 6971 and inserting in lieu thereof the following new item:

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

    (e) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1996.

SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF CIVILIAN STUDENTS AT FOREIGN LANGUAGE INSTITUTE OF THE DEFENSE LANGUAGE INSTITUTE.

    (a) AUTHORITY TO ACCEPT REIMBURSEMENT IN KIND- Section 559(a)(1) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) is amended--

      (1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and

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

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

    (b) CONFORMING AMENDMENTS- Such section is further amended--

      (1) in subsection (a)(1), by striking out ‘cost-reimburs-able,’; and

      (2) in subsection (d), as redesignated by subsection (a)(1) of this section, by striking out ‘subsection (a)’ the first place it appears and inserting in lieu thereof ‘subsection (a) or (c)’.

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

    (a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR FISCAL YEAR 1997- Of the amounts authorized to be appropriated in section 301(5)--

      (1) $30,000,000 shall be available for providing educational agencies assistance (as defined in subsection (d)(1)) to local educational agencies; and

      (2) $5,000,000 shall be available for making educational agencies payments (as defined in subsection (d)(2)) to local educational agencies.

    (b) NOTIFICATION- Not later than June 30, 1997, the Secretary of Defense shall--

      (1) notify each local educational agency that is eligible for educational agencies assistance for fiscal year 1997 of that agency’s eligibility for such assistance and the amount of such assistance for which that agency is eligible; and

      (2) notify each local educational agency that is eligible for an educational agencies payment for fiscal year 1997 of that agency’s eligibility for such payment and the amount of the payment for which that agency is eligible.

    (c) DISBURSEMENT OF FUNDS- The Secretary of Defense shall disburse funds made available under paragraphs (1) and (2) of subsection (a) not later than 30 days after the date on which notification to the eligible local educational agencies is provided pursuant to subsection (b).

    (d) DEFINITIONS- In this section:

      (1) The term ‘educational agencies assistance’ means assistance authorized under section 386(b) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note).

      (2) The term ‘educational agencies payments’ means payments authorized under section 386(d) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note).

      (3) The term ‘local educational agency’ has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND ACCOUNTING SERVICE CENTER, FORT BENJAMIN HARRISON, INDIANA.

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

    (b) AUTHORITY SUBJECT TO AUTHORIZATIONS AND APPROPRIATIONS- To the extent provided in appropriations Acts--

      (1) of funds described in subsection (a) and appropriated for fiscal year 1997, $9,000,000 may be transferred under such subsection; and

      (2) of funds described in subsection (a) and appropriated for fiscal years 1998, 1999, 2000, and 2001, funds may be transferred under such subsection in such amounts as are authorized to be transferred in an Act enacted after the date of the enactment of this Act.

    (c) AUTHORITY SUBJECT TO AGREEMENT BETWEEN DEPARTMENT OF DEFENSE AND GENERAL SERVICES ADMINISTRATION- The transfer authority provided in subsection (a) shall not take effect until the date on which the Secretary of Defense and the Administrator of General Services enter into an agreement that provides for the Department of Defense to receive a full reimbursement for the funds transferred under such subsection. Such reimbursement may include reimbursement in the form of reduced or static rental rates for Building One.

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

    (a) PROGRAM AUTHORIZED- The Secretaries of the military departments and the Secretary of Transportation may each carry out a food donation pilot program at the service academy under the jurisdiction of such Secretary.

    (b) DONATIONS AND COLLECTIONS OF FOOD AND GROCERY PRODUCTS- Under the pilot program, the Secretary concerned may donate to, and permit others to collect for, a nonprofit organization any food or grocery product that--

      (1) is--

        (A) an apparently wholesome food;

        (B) an apparently fit grocery product; or

        (C) a food or grocery product that is donated in accordance with section 402(e) of the National and Community Service Act of 1990 (42 U.S.C. 12672(e));

      (2) is owned by the United States;

      (3) is located at a service academy under the jurisdiction of such Secretary; and

      (4) is excess to the requirements of the academy.

    (c) PROGRAM COMMENCEMENT- The Secretary concerned shall commence carrying out the pilot program, if at all, during fiscal year 1997.

    (d) APPLICABILITY OF GOOD SAMARITAN FOOD DONATION ACT- Section 402 of the National and Community Service Act of 1990 (42 U.S.C. 12672) shall apply to donations and collections of food and grocery products under the pilot program without regard to section 403 of such Act (42 U.S.C. 12673).

    (e) REPORTS- (1) Each Secretary that carries out a pilot program at a service academy under this section shall submit to Congress an interim report and a final report on the pilot program.

    (2) The Secretary concerned shall submit the interim report not later than one year after the date on which the Secretary commences the pilot program at a service academy.

    (3) The Secretary concerned shall submit the final report not later than 90 days after the Secretary completes the pilot program at a service academy.

    (4) Each report shall include the following:

      (A) A description of the conduct of the pilot program.

      (B) A discussion of the experience under the pilot program.

      (C) An evaluation of the extent to which section 402 of the National and Community Service Act of 1990 (42 U.S.C. 12672) has been effective in protecting the United States and others from liabilities associated with actions taken under the pilot program.

      (D) Any recommendations for legislation to facilitate donations or collections of excess food and grocery products of the United States or others for nonprofit organizations.

    (f) DEFINITIONS- For purposes of this section:

      (1) The term ‘service academy’ means each of the following:

        (A) The United States Military Academy.

        (B) The United States Naval Academy.

        (C) The United States Air Force Academy.

        (D) The United States Coast Guard Academy.

      (2) The term ‘Secretary concerned’ means the following:

        (A) The Secretary of the Army, with respect to the United States Military Academy.

        (B) The Secretary of the Navy, with respect to the United States Naval Academy.

        (C) The Secretary of the Air Force, with respect to the United States Air Force Academy.

        (D) The Secretary of Transportation, with respect to the United States Coast Guard Academy.

      (3) The terms ‘apparently fit grocery product’, ‘apparently wholesome food’, ‘donate’, ‘food’, and ‘grocery product’ have the meanings given those terms in section 402(b) of the National and Community Service Act of 1990 (42 U.S.C. 12672(b)).

SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN SERVICES AT LINCOLN MUNICIPAL AIRPORT, LINCOLN, NEBRASKA.

    (a) AUTHORITY- The Nebraska Air National Guard may provide fire protection services and rescue services relating to aircraft at Lincoln Municipal Airport, Lincoln, Nebraska, on behalf of the Lincoln Municipal Airport Authority, Lincoln, Nebraska.

    (b) AGREEMENT- The Nebraska Air National Guard may not provide services under subsection (a) until the Nebraska Air National Guard and the authority enter into an agreement under which the authority agrees--

      (1) to reimburse the Nebraska Air National Guard for the cost of the services provided; and

      (2) to hold harmless and indemnify the United States, except in cases of willful misconduct or gross negligence, from any claim for damages or injury to any person or property arising out of the provision of, or the failure to provide, such services.

    (c) EFFECT ON MILITARY PREPAREDNESS- Services may only be provided under subsection (a) to the extent that the provision of such services does not adversely affect the military preparedness of the Armed Forces.

SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID PROGRAM.

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Permanent end strength levels to support two major regional contingencies.

Sec. 403. Authorized strengths for commissioned officers on active duty in grades of major, lieutenant colonel, and colonel and navy grades of lieutenant commander, commander, and captain.

Sec. 404. Extension of requirement for recommendations regarding appointments to joint 4-star officer positions.

Sec. 405. Increase in authorized number of general officers on active duty in the Marine Corps.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for reserves on active duty in support of the Reserves.

Sec. 413. End strengths for military technicians.

Sec. 414. Assurance of continued assignment of military personnel to serve in Selective Service System.

Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel as of September 30, 1997, as follows:

      (1) The Army, 495,000.

      (2) The Navy, 407,318.

      (3) The Marine Corps, 174,000.

      (4) The Air Force, 381,100.

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

    (a) REQUIREMENT TO BUDGET FOR AND MAINTAIN STATUTORY END STRENGTH LEVELS- Section 691 of title 10, United States Code, is amended--

      (1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and

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

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

    ‘(d) No funds appropriated to the Department of Defense may be used to implement a reduction of the active duty end strength for any of the armed forces (other than the Coast Guard) for any fiscal year below the level specified in subsection (b) unless the reduction in end strength for that armed force for that fiscal year is specifically authorized by law.’.

    (b) TEMPORARY FLEXIBILITY RELATING TO PERMANENT END STRENGTH LEVELS- Subsection (e) of such section, as redesignated by subsection (a)(1), is amended by striking out ‘not more than 0.5 percent’ and inserting in lieu thereof ‘not more than 1 percent’.

SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON ACTIVE DUTY IN GRADES OF MAJOR, LIEUTENANT COLONEL, AND COLONEL AND NAVY GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.

    (a) REVISION IN ARMY, AIR FORCE, AND MARINE CORPS LIMITATIONS- The table in paragraph (1) of section 523(a) of title 10, United States Code, is amended to read as follows:

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
‘Total number of commissioned officers (excluding officers in categories specified in subsection (b)) on active duty: Number of officers who may be serving on active duty in the grade of:                            
                                                                                                                                                                                      Major Lieutenant Colonel Colonel 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
20,000                                                                                                                                                                                6,848              5,253   1,613 
25,000                                                                                                                                                                                7,539              5,642   1,796 
30,000                                                                                                                                                                                8,231              6,030   1,980 
35,000                                                                                                                                                                                8,922              6,419   2,163 
40,000                                                                                                                                                                                9,614              6,807   2,347 
45,000                                                                                                                                                                               10,305              7,196   2,530 
50,000                                                                                                                                                                               10,997              7,584   2,713 
55,000                                                                                                                                                                               11,688              7,973   2,897 
60,000                                                                                                                                                                               12,380              8,361   3,080 
65,000                                                                                                                                                                               13,071              8,750   3,264 
70,000                                                                                                                                                                               13,763              9,138   3,447 
75,000                                                                                                                                                                               14,454              9,527   3,631 
80,000                                                                                                                                                                               15,146              9,915   3,814 
85,000                                                                                                                                                                               15,837             10,304   3,997 
90,000                                                                                                                                                                               16,529             10,692   4,181 
95,000                                                                                                                                                                               17,220             11,081   4,364 
100,000                                                                                                                                                                              17,912             11,469   4,548 
110,000                                                                                                                                                                              19,295             12,246   4,915 
120,000                                                                                                                                                                              20,678             13,023   5,281 
130,000                                                                                                                                                                              22,061             13,800   5,648 
170,000                                                                                                                                                                              27,593             16,908   7,116 
35,000                                                                                                                                                                                9,216              7,090   2,125 
40,000                                                                                                                                                                               10,025              7,478   2,306 
45,000                                                                                                                                                                               10,835              7,866   2,487 
50,000                                                                                                                                                                               11,645              8,253   2,668 
55,000                                                                                                                                                                               12,454              8,641   2,849 
60,000                                                                                                                                                                               13,264              9,029   3,030 
65,000                                                                                                                                                                               14,073              9,417   3,211 
70,000                                                                                                                                                                               14,883              9,805   3,392 
75,000                                                                                                                                                                               15,693             10,193   3,573 
80,000                                                                                                                                                                               16,502             10,582   3,754 
85,000                                                                                                                                                                               17,312             10,971   3,935 
90,000                                                                                                                                                                               18,121             11,360   4,115 
95,000                                                                                                                                                                               18,931             11,749   4,296 
100,000                                                                                                                                                                              19,741             12,138   4,477 
105,000                                                                                                                                                                              20,550             12,527   4,658 
110,000                                                                                                                                                                              21,360             12,915   4,838 
115,000                                                                                                                                                                              22,169             13,304   5,019 
120,000                                                                                                                                                                              22,979             13,692   5,200 
125,000                                                                                                                                                                              23,789             14,081   5,381 
10,000                                                                                                                                                                                2,525              1,480     571 
12,500                                                                                                                                                                                2,900              1,600     592 
15,000                                                                                                                                                                                3,275              1,720     613 
17,500                                                                                                                                                                                3,650              1,840     633 
20,000                                                                                                                                                                                4,025              1,960     654 
22,500                                                                                                                                                                                4,400              2,080     675 
25,000                                                                                                                                                                                4,775              2,200   695.’ 
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    (b) REVISION IN NAVY LIMITATIONS- The table in paragraph (2) of such section is amended to read as follows:

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

    (c) REPEAL OF TEMPORARY AUTHORITY FOR VARIATIONS IN END STRENGTHS- The following provisions of law are repealed:

      (1) Section 402 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10 U.S.C. 523 note).

      (2) Section 402 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10 U.S.C. 523 note).

      (3) Section 402 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10 U.S.C. 523 note).

    (d) EFFECTIVE DATE- The amendments made by subsections (a), (b), and (c) shall take effect on September 1, 1997.

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

    (a) SERVICE SECRETARY RECOMMENDATION REQUIRED- Section 604(c) of title 10, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 2000’.

    (b) GRADE RELIEF WHEN RECOMMENDATION MADE- Section 525(b)(5)(C) of such title is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 2000’.

SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS ON ACTIVE DUTY IN THE MARINE CORPS.

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

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) IN GENERAL- The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 1997, as follows:

      (1) The Army National Guard of the United States, 366,758.

      (2) The Army Reserve, 215,179.

      (3) The Naval Reserve, 96,304.

      (4) The Marine Corps Reserve, 42,000.

      (5) The Air National Guard of the United States, 109,178.

      (6) The Air Force Reserve, 73,311.

      (7) The Coast Guard Reserve, 8,000.

    (b) WAIVER AUTHORITY- The Secretary of Defense may vary the end strength authorized by subsection (a) by not more than 2 percent.

    (c) ADJUSTMENTS- The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component for a fiscal year shall be proportionately reduced by--

      (1) the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year, and

      (2) the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.

    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. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 1997, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

      (1) The Army National Guard of the United States, 22,798.

      (2) The Army Reserve, 11,729.

      (3) The Naval Reserve, 16,603.

      (4) The Marine Corps Reserve, 2,559.

      (5) The Air National Guard of the United States, 10,403.

      (6) The Air Force Reserve, 655.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.

    (a) AUTHORIZATION FOR FISCAL YEAR 1997- The minimum number of military technicians as of the last day of fiscal year 1997 for the reserve components of the Army and the Air Force (notwithstanding section 129 of title 10, United States Code) shall be the following:

      (1) For the Army Reserve, 6,799.

      (2) For the Army National Guard of the United States, 25,500.

      (3) For the Air Force Reserve, 9,802.

      (4) For the Air National Guard of the United States, 23,299.

    (b) INFORMATION TO BE PROVIDED WITH FUTURE AUTHORIZATION REQUESTS- Section 10216 of title 10, United States Code, is amended--

      (1) by redesignating subsection (b) as subsection (c); and

      (2) by inserting after subsection (a) the following new subsection (b):

    ‘(b) INFORMATION REQUIRED TO BE SUBMITTED WITH ANNUAL END STRENGTH AUTHORIZATION REQUEST- (1) The Secretary of Defense shall include as part of the budget justification documents submitted to Congress with the budget of the Department of Defense for any fiscal year the following information with respect to the end strengths for military technicians requested in that budget pursuant to section 115(g) of this title, shown separately for each of the Army and Air Force reserve components:

      ‘(A) The number of dual-status technicians in the high priority units and organizations specified in subsection (a)(1).

      ‘(B) The number of technicians other than dual-status technicians in the high priority units and organizations specified in subsection (a)(1).

      ‘(C) The number of dual-status technicians in other than high priority units and organizations specified in subsection (a)(1).

      ‘(D) The number of technicians other than dual-status technicians in other than high priority units and organizations specified in subsection (a)(1).

    ‘(2)(A) If the budget submitted to Congress for any fiscal year requests authorization for that fiscal year under section 115(g) of this title of a military technician end strength for a reserve component of the Army or Air Force in a number that constitutes a reduction from the end strength minimum established by law for that reserve component for the fiscal year during which the budget is submitted, the Secretary of Defense shall submit to the congressional defense committees with that budget a justification providing the basis for that requested reduction in technician end strength.

    ‘(B) Any justification submitted under subparagraph (A) shall clearly delineate--

      ‘(i) in the case of a reduction that includes a reduction in technicians described in subparagraph (A) or (C) of paragraph (1), the specific force structure reductions forming the basis for such requested technician reduction (and

the numbers related to those force structure reductions); and

      ‘(ii) in the case of a reduction that includes reductions in technicians described in subparagraphs (B) or (D) of paragraph (1), the specific force structure reductions, Department of Defense civilian personnel reductions, or other reasons forming the basis for such requested technician reduction (and the numbers related to those reductions).’.

    (c) TECHNICAL AMENDMENTS- Such section is further amended--

      (1) in subsection (a), by striking out ‘section 115’ and inserting in lieu thereof ‘section 115(g)’; and

      (2) in subsection (c), as redesignated by subsection (b)(1), by striking out ‘after the date of the enactment of this section’ both places it appears and inserting in lieu thereof ‘after February 10, 1996,’.

SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY PERSONNEL TO SERVE IN SELECTIVE SERVICE SYSTEM.

    (a) NUMBER OF MILITARY PERSONNEL TO BE ASSIGNED- Section 10 of the Military Selective Service Act (50 U.S.C. App. 460) is amended--

      (1) in subsection (b)(2), by inserting ‘, subject to subsection (e),’ after ‘to employ such number of civilians, and’; and

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

    ‘(e) The total number of armed forces personnel assigned to the Selective Service System under subsection (b)(2) at any time may not be less than the number of such personnel determined by the Director of Selective Service to be necessary, but not to exceed 745 persons, except that the President may assign additional armed forces personnel to the Selective Service System during a time of war or a national emergency declared by Congress or the President.’.

    (b) STYLISTIC AMENDMENTS- Subsection (b) of such section is amended--

      (1) by striking out ‘authorized--’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘authorized to undertake the following:’;

      (2) by striking out ‘to’ at the beginning of paragraphs (1) through (7) and inserting in lieu thereof ‘To’;

      (3) by striking out ‘subject’ at the beginning of paragraphs (8), (9), and (10) and inserting in lieu thereof ‘Subject’; and

      (4) by striking out the semicolon at the end of paragraphs (1) through (9) and inserting in lieu thereof a period.

Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.

Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force Nurse Corps.

Sec. 503. Navy spot promotion authority for certain lieutenants with critical skills.

Sec. 504. Time for award of degrees by unaccredited educational institutions for graduates to be considered educationally qualified for appointment as Reserve officers in grade O-3.

Sec. 505. Exception to baccalaureate degree requirement for appointment in the Naval Reserve in grades above O-2.

Sec. 506. Chief warrant officer promotions.

Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous membership program.

Sec. 508. Continuation on active status for certain Reserve officers of the Air Force.

Sec. 509. Reports on response to recommendations concerning improvements to Department of Defense joint manpower process.

Sec. 510. Frequency of reports to Congress on joint officer management policies.

Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 years of service.

Sec. 512. Authority to extend period for entry on active duty under the delayed entry program.

Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.

Sec. 522. Clarification of definition of active status.

Sec. 523. Limitation of requirement for physical examinations of members of National Guard called into Federal service.

Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training creditable toward reserve retirement.

Sec. 532. Retirement of reserve enlisted members who qualify for active duty retirement after administrative reduction in enlisted grade.

Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary.

Sec. 534. Eligibility of Reserves for disability retirement.

Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the Reserves.

Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance program.

Sec. 543. Reserve credit for participation in Health Professions Scholarship and Financial Assistance Program.

Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions.

Sec. 545. Report on number of advisers in active component support of Reserves pilot program.

Sec. 546. Sense of Congress and report regarding reemployment rights for mobilized Reservists employed in foreign countries.

Sec. 547. Payment of premiums under Mobilization Income Insurance Program.

Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers’ Training Corps program.

Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termination of senior ROTC units pending report on ROTC.

Sec. 553. Pilot program to test expansion of ROTC program to include graduate students.

Sec. 554. Demonstration project for instruction and support of Army ROTC units by members of the Army Reserve and National Guard.

Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in the Senior Reserve Officers’ Training Corps and the service academies.

Sec. 556. Expansion of eligibility for education benefits to include certain Reserve Officers’ Training Corps (ROTC) participants.

Sec. 557. Comptroller General report on cost and policy implications of permitting up to five percent of service academy graduates to be assigned directly to Reserve duty upon graduation.

Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African American soldiers who served during World War II.

Sec. 562. Waiver of time limitations for award of certain decorations to specified persons.

Sec. 563. Replacement of certain American Theater Campaign Ribbons.

Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.

Sec. 572. Disability coverage for members granted excess leave for educational or emergency purposes.

Sec. 573. Clarification of authority of a reserve judge advocate to act as a military notary public when not in a duty status.

Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not in Federal service.

Sec. 575. Authority to expand law enforcement placement program to include firefighters.

Sec. 576. Improvements to program to assist separated military and civilian personnel to obtain employment as teachers or teachers’ aides.

Sec. 577. Retirement at grade to which selected for promotion when a physical disability is found at any physical examination.

Sec. 578. Revisions to missing persons authorities.

Subtitle I--Commissioned Corps of the Public Health Service

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

Sec. 582. Exception to strength limitations for Public Health Service officers assigned to the Department of Defense.

Sec. 583. Authority to provide legal assistance to Public Health Service officers.

Subtitle A--Officer Personnel Policy

SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

    (a) REAR ADMIRAL (UPPER HALF)- Section 5022(a) of title 10, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(a)’; and

      (2) by adding at the end the following:

    ‘(2) Unless appointed to higher grade under another provision of law, an officer, while serving in the Office of Naval Research as Chief of Naval Research, has the rank of rear admiral (upper half).’.

    (b) EFFECTIVE DATE- Paragraph (2) of section 5022(a) of title 10, United States Code, as added by subsection (a), shall take effect upon the occurrence of the first vacancy in the position of Chief of Naval Research after the date of the enactment of this Act.

Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND AIR FORCE NURSE CORPS.

    (a) ARMY NURSE CORPS- (1) Subsection (b) of section 3069 of title 10, United States Code, is amended--

      (A) in the first sentence, by striking out ‘major’ and inserting in lieu thereof ‘lieutenant colonel’;

      (B) by inserting after the first sentence the following: ‘An appointee who holds a lower regular grade shall be appointed in the regular grade of brigadier general.’; and

      (C) in the last sentence, by inserting ‘to the same position’ before the period at the end.

    (2) Subsection (c) of such section is amended by striking out ‘major’ in the first sentence and inserting in lieu thereof ‘lieutenant colonel’.

    (3) The heading of such section is amended to read as follows:

‘Sec. 3069. Army Nurse Corps: composition; Chief and assistant chief; appointment; grade

    (b) AIR FORCE NURSE CORPS- Chapter 807 of such title is amended by inserting after section 8067 the following new section:

‘Sec. 8069. Air Force nurses: Chief and assistant chief; appointment; grade

    ‘(a) POSITIONS OF CHIEF AND ASSISTANT CHIEF- There are a Chief and assistant chief of the Air Force Nurse Corps.

    ‘(b) CHIEF- The Secretary of the Air Force shall appoint the Chief from the officers of the Regular Air Force designated as Air Force nurses whose regular grade is above lieutenant colonel and who are recommended by the Surgeon General. An appointee who holds a lower regular grade shall be appointed in the regular grade of brigadier general. The Chief serves during the pleasure of the Secretary, but not for more than three years, and may not be reappointed to the same position.

    ‘(c) ASSISTANT CHIEF- The Surgeon General shall appoint the assistant chief from the officers of the Regular Air Force designated as Air Force nurses whose regular grade is above lieutenant colonel.’.

    (c) CLERICAL AMENDMENTS- (1) The item relating to section 3069 in the table of sections at the beginning of chapter 307 of such title is amended to read as follows:

‘3069. Army Nurse Corps: composition; Chief and assistant chief; appointment; grade.’.

    (2) The table of sections at the beginning of chapter 807 of such title is amended by inserting after the item relating to section 8067 the following new item:

‘8069. Air Force Nurse Corps: Chief and assistant chief; appointment; grade.’.

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

    (a) ADVICE-AND-CONSENT APPOINTMENTS- Subsection (a) of section 5721 of title 10, United States Code, is amended by striking out ‘the President alone’ and inserting in lieu thereof ‘the President, by and with the advice and consent of the Senate’.

    (b) REPEAL OF TERMINATION OF AUTHORITY- Such section is further amended by striking out subsection (g).

    (c) CLERICAL AMENDMENT- The caption for subsection (a) is amended to read as follows: ‘PROMOTION AUTHORITY FOR CERTAIN OFFICERS WITH CRITICAL SKILLS- ’.

SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED EDUCATIONAL INSTITUTIONS FOR GRADUATES TO BE CONSIDERED EDUCATIONALLY QUALIFIED FOR APPOINTMENT AS RESERVE OFFICERS IN GRADE O-3.

    Section 12205(c)(2)(C) of title 10, United States Code, is amended by striking out ‘three years’ and inserting in lieu thereof ‘eight years’.

SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR APPOINTMENT IN THE NAVAL RESERVE IN GRADES ABOVE O-2.

    Section 12205(b)(3) of title 10, United States Code, is amended by inserting ‘or the Seaman to Admiral program’ after ‘(NAVCAD) program’.

SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

    (a) REDUCTION OF MINIMUM TIME IN GRADE REQUIRED FOR CONSIDERATION FOR PROMOTION- Section 574(e) of title 10, United States Code, is amended by striking out ‘three years of service’ and inserting in lieu thereof ‘two years of service’.

    (b) BELOW-ZONE SELECTION- Section 575(b)(1) of such title is amended by inserting ‘chief warrant officer, W-3,’ in the first sentence after ‘to consider warrant officers for selection for promotion to the grade of’.

SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN SIMULTANEOUS MEMBERSHIP PROGRAM.

    (a) AMENDMENTS TO TITLE 10- (1) Section 2106(c) of title 10, United States Code, is amended by striking out ‘while serving on active duty other than for training after July 31, 1990, while a member of the Selected Reserve’ and inserting in lieu thereof ‘performed on or after August 1, 1979, as a member of the Selected Reserve’.

    (2) Section 2107(g) of such title is amended by striking out ‘while serving on active duty other than for training after July 31, 1990, while a member of the Selected Reserve’ and inserting in lieu thereof ‘performed on or after August 1, 1979, as a member of the Selected Reserve’.

    (3) Section 2107a(g) of such title is amended by inserting ‘, other than enlisted service performed after August 1, 1979, as a member of Selected Reserve’ after ‘service as a cadet or with concurrent enlisted service’.

    (b) AMENDMENT TO TITLE 37- Section 205(d) of title 37, United States Code, is amended by striking out ‘that service after July 31, 1990, that the officer performed while serving on active duty’ and inserting in lieu thereof ‘for service that the officer performed on or after August 1, 1979.’.

    (c) BENEFITS NOT TO ACCRUE FOR PRIOR PERIODS- No increase in pay or retired or retainer pay shall accrue for periods before the date of the enactment of this Act by reason of the amendments made by this section.

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

    (a) AUTHORITY- Section 14507 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(c) TEMPORARY AUTHORITY TO RETAIN CERTAIN OFFICERS DESIGNATED AS JUDGE ADVOCATES- (1) Notwithstanding the provisions of subsections (a) and (b), the Secretary of the Air Force may retain on the reserve active-status list any reserve officer of the Air Force who is designated as a judge advocate and who obtained the first professional degree in law while on an educational delay program subsequent to being commissioned through the Reserve Officers’ Training Corps.

    ‘(2) No more than 50 officers may be retained on the reserve active-status list under the authority of paragraph (1) at any time.

    ‘(3) No officer may be retained on the reserve active-status list under the authority of paragraph (1) for a period exceeding three years from the date on which, but for that authority, that officer would have been removed from the reserve active-status list under subsection (a) or (b).

    ‘(4) The authority of the Secretary of the Air Force under paragraph (1) expires on September 30, 2003.’.

    (b) EFFECTIVE DATE- Subsection (c) of section 14507 of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 1996.

SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING IMPROVEMENTS TO DEPARTMENT OF DEFENSE JOINT MANPOWER PROCESS.

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

    (b) ADDITIONAL MATTER FOR FIRST REPORT- As part of the first report under subsection (a), the Secretary shall include the following:

      (1) The Secretary’s assessment as to the need to establish a joint, centralized permanent organization in the Department of Defense to determine, validate, approve, and manage military and civilian manpower requirements resources at joint organizations.

      (2) The Secretary’s assessment of the Department of Defense timeline and plan to increase the capability of the joint professional military education system (including the Armed Forces Staff College) to overcome the capacity limitations cited in the report referred to in subsection (a).

      (3) The Secretary’s plan and timeline to provide the necessary training and education of reserve component officers.

    (c) GAO ASSESSMENT- The Comptroller General of the United States shall assess the completeness and adequacy of the corrective actions taken by the Secretary with respect to the matters covered in the Inspector General report referred to in subsection (a). Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report, based on the assessment under this subsection, providing the Comptroller General’s findings and recommendations.

SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER MANAGEMENT POLICIES.

    (a) CHANGE FROM SEMIANNUAL TO ANNUAL REPORT- Section 662(b) of title 10, United States Code, is amended by striking out ‘REPORT- The Secretary of Defense shall periodically (and not less often than every six months) report to Congress on the promotion rates’ and inserting in lieu thereof ‘ANNUAL REPORT- Not later than January 1 of each year, the Secretary of Defense shall submit to Congress a report on the promotion rates during the preceding fiscal year’.

    (b) TECHNICAL AND CONFORMING AMENDMENTS- Such section is further amended--

      (1) in the first sentence, by striking out ‘clauses’ and inserting in lieu thereof ‘paragraphs’; and

      (2) in the second sentence--

        (A) by inserting ‘for any fiscal year’ after ‘such objectives’; and

        (B) by striking out ‘periodic report required by this subsection’ and inserting in lieu thereof ‘report for that fiscal year’.

Subtitle B--Enlisted Personnel Policy

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

    Subsection (d) of section 505 of title 10, United States Code, is amended to read as follows:

    ‘(d)(1) The Secretary concerned may accept a reenlistment in the Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps, or Regular Coast Guard, as the case may be, for a period determined under this subsection.

    ‘(2) In the case of a member who has less than 10 years of service in the armed forces as of the day before the first day of the period for which reenlisted, the period for which the member reenlists shall be at least two years but not more than six years.

    ‘(3) In the case of a member who has at least 10 years of service in the armed forces as of the day before the first day of the period for which reenlisted, the Secretary concerned may accept a reenlistment for either--

      ‘(A) a specified period of at least two years but not more than six years; or

      ‘(B) an unspecified period.

    ‘(4) No enlisted member is entitled to be reenlisted for a period that would expire before the end of the member’s current enlistment.’.

SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY UNDER THE DELAYED ENTRY PROGRAM.

    (a) AUTHORITY- Section 513(b) of title 10, United States Code, is amended by inserting after the first sentence the following: ‘The Secretary concerned may extend the 365-day period for any person for up to an additional 180 days if the Secretary determines that it is in the best interests of the armed force of which that person is a member to do so.’.

    (b) TECHNICAL AMENDMENTS- Section 513(b) of such title, as amended by subsection (a), is further amended--

      (1) by inserting ‘(1)’ after ‘(b)’;

      (2) by designating the third sentence as paragraph (2); and

      (3) in paragraph (2), as so designated, by striking out ‘the preceding sentence’ and inserting in lieu thereof ‘paragraph (1)’.

Subtitle C--Activation and Recall

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

    (a) REVISION AND RECODIFICATION OF AUTHORITIES RELATING TO RETIRED MEMBERS ORDERED TO ACTIVE DUTY- Chapter 39 of title 10, United States Code, is amended by striking out section 688 and inserting in lieu thereof the following:

- ‘Sec. 688. Retired members: authority to order to active duty; duties

    ‘(a) AUTHORITY- Under regulations prescribed by the Secretary of Defense, a member described in subsection (b) may be ordered to active duty by the Secretary of the military department concerned at any time.

    ‘(b) COVERED MEMBERS- Except as provided in subsection (d), subsection (a) applies to the following members of the armed forces:

      ‘(1) A retired member of the Regular Army, Regular Navy, Regular Air Force, or Regular Marine Corps.

      ‘(2) A member of the Retired Reserve who was retired under section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.

      ‘(3) A member of the Fleet Reserve or Fleet Marine Corps Reserve.

    ‘(c) DUTIES OF MEMBER ORDERED TO ACTIVE DUTY- The Secretary concerned may, to the extent consistent with other provisions of law, assign a member ordered to active duty under this section to such duties as the Secretary considers necessary in the interests of national defense.

    ‘(d) EXCLUSION OF OFFICERS RETIRED ON SELECTIVE EARLY RETIREMENT BASIS- The following officers may not be ordered to active duty under this section:

      ‘(1) An officer who retired under section 638 of this title.

      ‘(2) An officer who--

        ‘(A) after having been notified that the officer was to be considered for early retirement under section

638 of this title by a board convened under section 611(b) of this title and before being considered by that board, requested retirement under section 3911, 6323, or 8911 of this title; and

        ‘(B) was retired pursuant to that request.

    ‘(e) LIMITATION OF PERIOD OF RECALL SERVICE- A member ordered to active duty under subsection (a) may not serve on active duty pursuant to orders under that subsection for more than 12 months within the 24 months following the first day of the active duty to which ordered under that subsection.

    ‘(f) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY- Subsections (d) and (e) do not apply in time of war or of national emergency declared by Congress or the President.

- ‘Sec. 689. Retired members: grade in which ordered to active duty and upon release from active duty

    ‘(a) GENERAL RULE FOR GRADE IN WHICH ORDERED TO ACTIVE DUTY- Except as provided in subsections (b) and (c), a retired member ordered to active duty under section 688 of this title shall be ordered to active duty in the member’s retired grade.

    ‘(b) MEMBERS RETIRED IN O-9 AND O-10 GRADES- A retired member ordered to active duty under section 688 of this title whose retired grade is above the grade of major general or rear admiral shall be ordered to active duty in the highest permanent grade held by such member while serving on active duty.

    ‘(c) MEMBERS WHO PREVIOUSLY SERVED IN GRADE HIGHER THAN RETIRED GRADE- (1) A retired member ordered to active duty under section 688 of this title who has previously served on active duty satisfactorily, as determined by the Secretary of the military department concerned, in a grade higher than that member’s retired grade may be ordered to active duty in the highest grade in which the member had so served satisfactorily, except that such a member may not be so ordered to active duty in a grade above major general or rear admiral.

    ‘(2) A retired member ordered to active duty in a grade that is higher than the member’s retired grade pursuant to subsection (a) shall be treated for purposes of section 690 of this title as if the member was promoted to that higher grade while on that tour of active duty.

    ‘(3) If, upon being released from that tour of active duty, such a retired member has served on active duty satisfactorily, as determined by the Secretary concerned, for not less than a total of 36 months in a grade that is a higher grade than the member’s retired grade, the member is entitled to placement on the retired list in that grade.

    ‘(d) GRADE UPON RELEASE FROM ACTIVE DUTY- A member ordered to active duty under section 688 of this title who, while on active duty, is promoted to a grade that is higher than that member’s retired grade is entitled, upon that member’s release from that tour of active duty, to placement on the retired list in the highest grade in which the member served on active duty satisfactorily, as determined by the Secretary of the military department concerned, for not less than six months.

- ‘Sec. 690. Retired members ordered to active duty: limitation on number

    ‘(a) GENERAL AND FLAG OFFICERS- Not more than 15 retired general officers of the Army, Air Force, or Marine Corps, and not more than 15 retired flag officers of the Navy, may be on active duty at any one time. For the purposes of this subsection a retired officer ordered to active duty for a period of 60 days or less is not counted.

    ‘(b) LIMITATION BY SERVICE- (1) Not more than 25 officers of any one armed force may be serving on active duty concurrently pursuant to orders to active duty issued under section 688 of this title.

    ‘(2) In the administration of paragraph (1), the following officers shall not be counted:

      ‘(A) A chaplain who is assigned to duty as a chaplain for the period of active duty to which ordered.

      ‘(B) A health care professional (as characterized by the Secretary concerned) who is assigned to duty as a health care professional for the period of the active duty to which ordered.

      ‘(C) Any officer assigned to duty with the American Battle Monuments Commission for the period of active duty to which ordered.

    ‘(c) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY- Subsection (a) does not apply in time of war or of national emergency declared by Congress or the President after November 30, 1980. Subsection (b) does not apply in time of war or of national emergency declared by Congress or the President.’.

    (b) EFFECTIVE DATE- The amendments made by this section shall take effect on September 30, 1997.

    (c) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by striking out the item relating to section 688 and inserting in lieu thereof the following:

‘688. Retired members: authority to order to active duty; duties.

‘689. Retired members: grade in which ordered to active duty and upon release from active duty.

‘690. Retired members ordered to active duty: limitation on number.’.

    (d) CROSS REFERENCE AMENDMENT- Section 6151(a) of title 10, United States Code, is amended by striking out ‘688’ and inserting in lieu thereof ‘689’.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

    Section 101(d)(4) of title 10, United States Code, is amended by striking out ‘a reserve commissioned officer, other than a commissioned warrant officer,’ and inserting in lieu thereof the following: ‘a member of a reserve component’.

SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF MEMBERS OF NATIONAL GUARD CALLED INTO FEDERAL SERVICE.

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

Subtitle D--Reserve Component Retirement

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

    (a) INCREASE IN LIMIT- Section 12733(3) is amended by inserting before the period at the end the following: ‘of service before the year of service in which the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 occurs and not more than 75 days in any subsequent year of service’.

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

    (c) RECOMMENDATIONS TO CONGRESS- The Secretary shall submit to Congress, not later than one year after the date of the enactment of this Act, the recommendations of the Secretary with regard to the adoption of the following Reserve retirement initiatives recommended in the August 1988 report of the Sixth Quadrennial Review of Military Compensation:

      (1) Elimination of membership points under subparagraph (C) of section 12732(a)(2) of title 10, United States Code, in conjunction with a decrease from 50 to 35 in the number of points required for a satisfactory year under that section.

      (2) Limitation to 60 in any year on the number of points that may be credited under subparagraph (B) of section 12732(a)(2) of such title at two points per day.

      (3) Limitation to 360 in any year on the total number of retirement points countable for purposes of section 12733 of such title.

SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE REDUCTION IN ENLISTED GRADE.

    (a) ARMY- (1) Chapter 369 of title 10, United States Code, is amended by inserting after section 3962 the following new section:

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

    ‘(a) A Reserve enlisted member of the Army described in subsection (b) who is retired under section 3914 of this title shall be retired in the highest enlisted grade in which the member served on active duty satisfactorily (or, in the case of a member of the National Guard, in which the member served on full-time National Guard duty satisfactorily), as determined by the Secretary of the Army.

    ‘(b) This section applies to a Reserve enlisted member who--

      ‘(1) at the time of retirement is serving on active duty (or, in the case of a member of the National Guard, on full-time National Guard duty) in a grade lower than the highest enlisted grade held by the member while on active duty (or full-time National Guard duty); and

      ‘(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Army.

    ‘(c) This section applies with respect to Reserve enlisted members who are retired under section 3914 of this title after September 30, 1996.’.

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

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

    (b) NAVY AND MARINE CORPS- (1) Chapter 571 of title 10, United States Code, is amended by adding at the end the following new section:

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

    ‘(a) A member of the Naval Reserve or Marine Corps Reserve described in subsection (b) who is transferred to the Fleet Reserve or the Fleet Marine Corps Reserve under section 6330 of this title shall be transferred in the highest enlisted grade in which the member served on active duty satisfactorily, as determined by the Secretary of the Navy.

    ‘(b) This section applies to a Reserve enlisted member who--

      ‘(1) at the time of transfer to the Fleet Reserve or Fleet Marine Corps Reserve is serving on active duty in a grade lower than the highest enlisted grade held by the member while on active duty; and

      ‘(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Navy.

    ‘(c) This section applies with respect to enlisted members of the Naval Reserve and Marine Corps Reserve who are transferred to the Fleet Reserve or the Fleet Marine Corps Reserve after September 30, 1996.’.

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

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

    (c) AIR FORCE- (1) Chapter 869 of title 10, United States Code, is amended by inserting after section 8962 the following new section:

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

    ‘(a) A Reserve enlisted member of the Air Force described in subsection (b) who is retired under section 8914 of this title shall be retired in the highest enlisted grade in which the member served on active duty satisfactorily (or, in the case of a member of the National Guard, in which the member served on full-time National Guard duty satisfactorily), as determined by the Secretary of the Air Force.

    ‘(b) This section applies to a Reserve enlisted member who--

      ‘(1) at the time of retirement is serving on active duty (or, in the case of a member of the National Guard, on full-time National Guard duty) in a grade lower than the highest enlisted grade held by the member while on active duty (or full-time National Guard duty); and

      ‘(2) was previously administratively reduced in grade not as a result of the member’s own misconduct, as determined by the Secretary of the Air Force.

    ‘(c) This section applies with respect to Reserve enlisted members who are retired under section 8914 of this title after September 30, 1996.’.

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

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

    (d) COMPUTATION OF RETIRED AND RETAINER PAY BASED UPON RETIRED GRADE- (1) Section 3991 of such title is amended by adding at the end the following new subsection:

    ‘(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS COVERED BY SECTION 3963- In the case of a Reserve enlisted member retired under section 3914 of this title whose retired grade is determined under section 3963 of this title and who first became a member of a uniformed service before September 8, 1980, the retired pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the member’s retired grade (determined based upon the rates of basic pay applicable on the date of the member’s retirement), and that amount shall be used for the purposes of subsection (a)(1)(A) rather than the amount computed under section 1406(c) of this title.’.

    (2) Section 6333 of such title is amended by adding at the end the following new subsection:

    ‘(c) In the case of a Reserve enlisted member whose grade upon transfer to the Fleet Reserve or Fleet Marine Corps Reserve is determined under section 6336 of this title and who first became a member of a uniformed service before September 8, 1980, the retainer pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the grade in which the member is so transferred (determined based upon the rates of basic pay applicable on the date of the member’s transfer), and that amount shall be used for the purposes of the table in subsection (a) rather than the amount computed under section 1406(d) of this title.’.

    (3) Section 8991 of such title is amended by adding at the end the following new subsection:

    ‘(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS COVERED BY SECTION 8963- In the case of a Reserve enlisted member retired under section 8914 of this title whose retired grade is determined under section 8963 of this title and who first became a member of a uniformed service before September 8, 1980, the retired pay base of the member (notwithstanding section 1406(a)(1) of this title) is the amount of the monthly basic pay of the member’s retired grade (determined based upon the rates of basic pay applicable on the date of the member’s retirement), and that amount shall be used for the purposes of subsection (a)(1)(A) rather than the amount computed under section 1406(e) of this title.’.

SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE RETIREMENT SANCTUARY.

    Section 12686 of title 10, United States Code, is amended--

      (1) by inserting ‘(a) LIMITATION- ’ before ‘Under regulations’; and

      (2) by adding at the end the following:

    ‘(b) WAIVER- With respect to a member of a reserve component who is to be ordered to active duty (other than for training) under section 12301 of this title pursuant to an order to active duty that specifies a period of less than 180 days and who (but for this subsection) would be covered by subsection (a), the Secretary concerned may require, as a condition of such order to active duty, that the member waive the applicability of subsection (a) to the member for the period of active duty covered by that order. In carrying out this subsection, the Secretary concerned may require that a waiver under the preceding sentence be executed before the period of active duty begins.’.

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

    Paragraph (2) of section 1204 of title 10, United States Code, is amended to read as follows:

      ‘(2) the disability is the proximate result of, or was incurred in line of duty after the date of the enactment of this Act as a result of--

        ‘(A) performing active duty or inactive-duty training;

        ‘(B) traveling directly to or from the place at which such duty is performed; or

        ‘(C) an injury, illness, or disease incurred or aggravated while remaining overnight, between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive duty training, if the site is outside reasonable commuting distance of the member’s residence;’.

Subtitle E--Other Reserve Component Matters

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

    Subsection (b) of section 12310 of title 10, United States Code, is amended to read as follows:

    ‘(b) A Reserve on active duty as described in subsection (a) may be provided training consistent with training provided to other members on active duty, as the Secretary concerned sees fit.’.

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

    Section 12524 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) MEMBERS OF INDIVIDUAL READY RESERVE- Notwithstanding any other provision of this section, and pursuant to regulations issued by the Secretary, a member of the Individual Ready Reserve who becomes a member of the Selected Reserve shall not be denied eligibility to purchase insurance under this chapter upon becoming a member of the Selected Reserve unless the member previously declined to enroll in the program of insurance under this chapter while a member of the Selected Reserve.’.

SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) CREDIT AUTHORIZED- Section 2126 of title 10, United States Code, is amended--

      (1) by striking out ‘Service performed’ and inserting in lieu thereof ‘(a) SERVICE NOT CREDITABLE- Except as provided in subsection (b), service performed’; and

      (2) by adding at the end the following:

    ‘(b) SERVICE CREDITABLE FOR CERTAIN PURPOSES- (1) The Secretary concerned may authorize service performed by a member of the program in pursuit of a course of study under this subchapter to be counted in accordance with this subsection if the member--

      ‘(A) completes the course of study;

      ‘(B) completes the active duty obligation imposed under section 2123(a) of this title; and

      ‘(C) possesses a specialty designated by the Secretary concerned as critically needed in wartime.

    ‘(2) Service credited under paragraph (1) counts only for the following purposes:

      ‘(A) Award of retirement points for computation of years of service under section 12732 of this title and for computation of retired pay under section 12733 of this title.

      ‘(B) Computation of years of service creditable under section 205 of title 37.

    ‘(3) For purposes of paragraph (2)(A), a member may be credited in accordance with paragraph (1) with not more than 50 points for each year of participation in a course of study that the member satisfactorily completes as a member of the program.

    ‘(4) Service may not be counted under paragraph (1) for more than four years of participation in a course of study as a member of the program.

    ‘(5) A member is not entitled to any retroactive award of, or increase in, pay or allowances under title 37 by reason of an award of service credit under paragraph (1).’.

    (b) AWARD OF RETIREMENT POINTS- (1) Section 12732(a)(2) of such title is amended--

      (A) by inserting after clause (C) the following:

        ‘(D) Points credited for the year under section 2126(b) of this title.’; and

      (B) in the matter following clause (D), as inserted by paragraph (1), by striking out ‘and (C)’ and inserting in lieu thereof ‘(C), and (D)’.

    (2) Section 12733(3) of such title is amended by striking out ‘or (C)’ and inserting in lieu thereof ‘(C), or (D)’.

SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT PROVISIONS.

    (a) SERVICE REQUIREMENT FOR RETIREMENT IN HIGHEST GRADE HELD- Section 1370(d) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (3) as paragraph (4);

      (2) in paragraph (2)(A), by striking out ‘(A)’;

      (3) by redesignating paragraph (2)(B) as paragraph (3); and

      (4) in paragraph (3), as so redesignated--

        (A) by designating the first sentence as subpara- graph (A);

        (B) by designating the second sentence as subparagraph (B);

        (C) in subparagraph (B), as so redesignated, by striking out ‘the preceding sentence’ and inserting in lieu thereof ‘subparagraph (A)’; and

        (D) by adding at the end the following:

    ‘(C) If a person covered by subparagraph (A) has completed at least six months of satisfactory service in grade, the person was serving in that grade while serving in a position of adjutant general required under section 314 of title 32 or while serving in a position of assistant adjutant general subordinate to such a position of adjutant general, and the person has failed to complete three years of service in that grade solely because the person’s appointment to such position has been terminated or vacated as described in section 324(b) of such title, then such person may be credited with satisfactory service in that grade, notwithstanding the failure to complete three years of service in that grade.

    ‘(D) To the extent authorized by the Secretary of the military department concerned, a person who, after having been recommended for promotion in a report of a promotion board but before being promoted to the recommended grade, served in a position for which that grade is the minimum authorized grade may be credited for purposes of subparagraph (A) as having served in that grade for the period for which the person

served in that position while in the next lower grade. The period credited may not include any period before the date on which the Senate provides advice and consent for the appointment of that person in the recommended grade.

    ‘(E) To the extent authorized by the Secretary of the military department concerned, a person who, after having been extended temporary Federal recognition as a reserve officer of the Army National Guard in a particular grade under section 308 of title 32 or temporary Federal recognition as a reserve officer of the Air National Guard in a particular grade under such section, served in a position for which that grade is the minimum authorized grade may be credited for purposes of subparagraph (A) as having served in that grade for the period for which the person served in that position while extended the temporary Federal recognition, but only if the person was subsequently extended permanent Federal recognition as a reserve officer in that grade and also served in that position after being extended the permanent Federal recognition.’.

    (b) EXCEPTION TO REQUIREMENT FOR RETENTION OF RESERVE OFFICERS UNTIL COMPLETION OF REQUIRED SERVICE- Section 12645(b)(2) of such title is amended by inserting ‘or a reserve active-status list’ after ‘active-duty list’.

    (c) TECHNICAL CORRECTION- Section 14314(b)(2)(B) of such title is amended by striking out ‘of the Air Force’.

SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT SUPPORT OF RESERVES PILOT PROGRAM.

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

    (b) TECHNICAL AMENDMENT- Section 414(a) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note) is amended by striking out ‘During fiscal years 1992 and 1993, the Secretary of the Army shall institute’ and inserting in lieu thereof ‘The Secretary of the Army shall carry out’.

SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED IN FOREIGN COUNTRIES.

    (a) SENSE OF CONGRESS- Congress is concerned about the lack of reemployment rights afforded Reserve component members who reside in foreign countries and either work for United States companies that maintain offices or operations in foreign countries or work for foreign employers. Being outside the jurisdiction of the United States, these employers are not subject to the provisions of chapter 43 of title 38, United States Code, known as the Uniformed Services Employment and Reemployment Rights Act (USERRA). The purpose of that Act is to provide statutory employment protections that include reinstatement, seniority, status, and rate of pay coverage for Reservists who are ordered to active duty for a specified period of time, including involuntary active duty in support of an operational contingency. While most Reserve members are afforded the protections of that Act (which covers reemployment rights in their civilian jobs upon completion of military service), approximately 2,000 members of the Selected Reserve reside outside the United States and its territories and, not being guaranteed the job protection envisioned by the USERRA, are potentially subject to reemployment problems after release from active duty. This situation poses a continuing personnel management challenge for the reserve components.

    (b) RECOGNITION OF PROBLEM- Congress, while recognizing that foreign governments and companies located abroad, not being within the jurisdiction of the United States, cannot be required to comply with the provisions of the Uniformed Services Employment and Reemployment Rights Act, also recognizes that there is a need to provide assistance to Reservists in the situation described in subsection (a), both in the near term and the long term.

    (c) REPORT REQUIREMENT- Not later than April 1, 1997, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report that sets forth recommended actions to help alleviate reemployment problems for Reservists who are employed outside the United States and its territories by United States companies that maintain offices or operations in foreign countries or by foreign employers. The report shall include recommendations on the assistance and support that may be required by other organizations of the Government, including the Defense Attache Offices, the Department of Labor, and the Department of State. The report shall be prepared in consultation with the Secretary of State and the Secretary of Labor.

SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME INSURANCE PROGRAM.

    Section 12527(a) of title 10, United States Code, is amended--

      (1) in paragraph (1), by inserting ‘of the Selected Reserve’ after ‘a member’; and

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

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

Subtitle F--Officer Education Programs

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

    (a) ENROLLMENT PRIORITY TO BE CONSISTENT WITH PURPOSE OF PROGRAM- (1) Section 2103 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(e) An educational institution at which a unit of the program has been established shall give priority for enrollment in the program to students who are eligible for advanced training under section 2104 of this title.’.

    (2) Section 2109 of such title is amended by adding at the end the following new subsection:

    ‘(c)(1) A person who is not qualified for, and (as determined by the Secretary concerned) will not be able to become qualified for, advanced training by reason of one or more of the requirements prescribed in paragraphs (1) through (3) of section 2104(b) of this title shall not be permitted to participate in--

      ‘(A) field training or a practice cruise under section 2106(b)(6) of this title; or

      ‘(B) practical military training under subsection (a).

    ‘(2) The Secretary of the military department concerned may waive the limitation in paragraph (1) under procedures prescribed by the Secretary. Such procedures shall ensure uniform application of limitations and restrictions without regard to the reason for disqualification for advanced training.’.

    (b) WEAR OF THE MILITARY UNIFORM- Section 772(h) of such title is amended by inserting before the period at the end the following: ‘if the wear of such uniform is specifically authorized under regulations prescribed by the Secretary of the military department concerned’.

SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND OR TERMINATION OF SENIOR ROTC UNITS PENDING REPORT ON ROTC.

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

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

    (b) REPORT CONTENTS- The report referred to in subsection (a) is a report by the Secretary of the Army in which the Secretary--

      (1) describes the selection process used to identify the Reserve Officer Training Corps units of the Army to be terminated;

      (2) lists the criteria used by the Army to select Reserve Officer Training Corps units for termination;

      (3) sets forth the specific ranking of each unit of the Reserve Officer Training Corps of the Army to be terminated as against all other such units;

      (4) sets forth the authorized and actual cadre staffing of each such unit for each fiscal year of the 10-fiscal year period ending with fiscal year 1996;

      (5) sets forth the production goals and performance evaluations of each such unit for each fiscal year of the 10-fiscal year period ending with fiscal year 1996;

      (6) describes how cadets currently enrolled in the units referred to in paragraph (5) will be accommodated after the closure of such units;

      (7) describes the incentives to enhance the Reserve Officer Training Corps program that are provided by each of the colleges on the closure list;

      (8) includes the projected officer accession plan by source of commission for the active-duty Army, the Army Reserve, and the Army National Guard; and

      (9) describes whether the closure of any ROTC unit will adversely affect the recruitment of minority officer candidates.

SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO INCLUDE GRADUATE STUDENTS.

    (a) TEST PROGRAM- Section 2107(c) of title 10, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(c)’; and

      (2) by adding at the end the following:

    ‘(2) The Secretary of Defense shall authorize the Secretaries of the military departments to carry out a test program to determine the desirability of enabling graduate students to participate in the financial assistance program under this section. As part of such test program, the Secretary of a military department may provide financial assistance, as described in paragraph (1), to a student enrolled in an advanced education program beyond the baccalaureate degree level if the student also is a cadet or midshipman in an advanced training program. Not more than 15 percent of the total number of scholarships awarded under this section in any year may be awarded under the test program. No scholarship may be awarded under the test program after September 30, 1999.’.

    (b) AUTHORITY TO ENROLL IN ADVANCED TRAINING PROGRAM- Paragraph (3) of section 2101 of title 10, United States Code, is amended by inserting ‘students enrolled in an advanced education program beyond the baccalaureate degree level or to’ after ‘instruction offered in the Senior Reserve Officers’ Training Corps to’.

    (c) REPORT TO CONGRESS- Not later than December 31, 1998, the Secretary of Defense shall submit to Congress a

report on the experience to that date under the test program authorized under the amendment made by subsection (a)(2). The report shall include the Secretary’s assessment of the effect of the test program on the Senior ROTC program and the Secretary’s recommendation as to whether the authority under the test program should be made permanent.

SEC. 554. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUPPORT OF ARMY ROTC UNITS BY MEMBERS OF THE ARMY RESERVE AND NATIONAL GUARD.

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

    (b) PROJECT REQUIREMENTS- (1) The Secretary shall carry out the demonstration project at at least one institution of higher education.

    (2) In order to enhance the value of the project, the Secretary may take actions to ensure that members of the Army Reserve and the Army National Guard provide instruction and support under the project in a variety of innovative ways.

    (c) INAPPLICABILITY OF LIMITATION ON RESERVES IN SUPPORT OF ROTC- The assignment of a member of the Army Reserve or the Army National Guard to provide instruction or support under the demonstration project shall not be treated as an assignment of the member to duty with a unit of a Reserve Officer Training Corps program for purposes of section 12321 of title 10, United States Code.

    (d) REPORTS TO CONGRESS- Not later than February 1 in each of 1998 and 1999, the Secretary shall submit to Congress a report assessing the activities under the demonstration project during the preceding year. The report submitted in 1999 shall include the Secretary’s recommendation as to the advisability of continuing or expanding the authority for the project.

    (e) TERMINATION- The authority of the Secretary to carry out the demonstration project shall expire three years after the date of the enactment of this Act.

SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET OR MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS’ TRAINING CORPS AND THE SERVICE ACADEMIES.

    (a) SENIOR RESERVE OFFICERS’ TRAINING CORPS- Sections 2107(a) and 2107a(a) of title 10, United States Code, are amended--

      (1) by striking out ‘25 years of age’ and inserting in lieu thereof ‘27 years of age’; and

      (2) by striking out ‘29 years of age’ and inserting in lieu thereof ‘30 years of age’.

    (b) UNITED STATES MILITARY ACADEMY- Section 4346(a) of such title is amended by striking out ‘twenty-second birthday’ and inserting in lieu thereof ‘twenty-third birthday’.

    (c) UNITED STATES NAVAL ACADEMY- Section 6958(a)(1) of such title is amended by striking out ‘twenty-second birthday’ and inserting in lieu thereof ‘twenty-third birthday’.

    (d) UNITED STATES AIR FORCE ACADEMY- Section 9346(a) of such title is amended by striking out ‘twenty-second birthday’ and inserting in lieu thereof ‘twenty-third birthday’.

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

    (a) ACTIVE DUTY SERVICE- Section 3011(c) of title 38, United States Code, is amended--

      (1) by striking out ‘or upon completion of a program of educational assistance under section 2107 of title 10’ in paragraph (2); and

      (2) by adding at the end the following:

    ‘(3) An individual who after December 31, 1976, receives a commission as an officer in the Armed Forces upon completion of a program of educational assistance under section 2107 of title 10 is not eligible for educational assistance under this section if the individual enters on active duty--

      ‘(A) before October 1, 1996; or

      ‘(B) after September 30, 1996, and while participating in such program received more than $2,000 for each year of such participation.’.

    (b) SELECTED RESERVE- Section 3012(d) of title 38, United States Code, is amended--

      (1) by striking out ‘or upon completion of a program of educational assistance under section 2107 of title 10’ in paragraph (2); and

      (2) by adding at the end the following:

    ‘(3) An individual who after December 31, 1976, receives a commission as an officer in the Armed Forces upon completion of a program of educational assistance under section 2107 of title 10 is not eligible for educational assistance under this section if the individual enters on active duty--

      ‘(A) before October 1, 1996; or

      ‘(B) after September 30, 1996, and while participating in such program received more than $2,000 for each year of such participation.’.

SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY IMPLICATIONS OF PERMITTING UP TO FIVE PERCENT OF SERVICE ACADEMY GRADUATES TO BE ASSIGNED DIRECTLY TO RESERVE DUTY UPON GRADUATION.

    (a) REPORT REQUIRED- The Comptroller General of the United States shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report providing an analysis of the cost implications, and the policy implications, of permitting up to five percent of each graduating class of each of the service academies to be placed, upon graduation and commissioning, in an active status in the appropriate reserve component (without a minimum period of obligated active duty service), with a

corresponding increase in the number of ROTC graduates each year who are permitted to serve on active duty upon commissioning.

    (b) INFORMATION ON CURRENT ACADEMY GRADUATES IN RESERVE COMPONENTS- The Comptroller General shall include in the report information (shown in the aggregate and separately for each of the Armed Forces and for graduates of each service academy) on--

      (1) the number of academy graduates who at the time of the report are serving in an active status in a reserve component; and

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

    (c) SUBMISSION OF REPORT- The report shall be submitted not later than six months after the date of the enactment of this Act.

    (d) SERVICE ACADEMIES- For purposes of this section, the term ‘service academies’ means--

      (1) the United States Military Academy;

      (2) the United States Naval Academy; and

      (3) the United States Air Force Academy.

Subtitle G--Decorations and Awards

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

    (a) INAPPLICABILITY OF TIME LIMITATIONS- Notwithstanding the time limitations in section 3744(b) of title 10, United States Code, or any other time limitation, the President may award the Medal of Honor to the persons specified in subsection (b), each of whom has been found by the Secretary of the Army to have distinguished himself conspicuously by gallantry and intrepidity at the risk of his life above and beyond the call of duty while serving in the United States Army during World War II.

    (b) PERSONS ELIGIBLE TO RECEIVE THE MEDAL OF HONOR- The persons referred to in subsection (a) are the following:

      (1) Vernon J. Baker, who served as a first lieutenant in the 370th Infantry Regiment, 92nd Infantry Division.

      (2) Edward A. Carter, who served as a staff sergeant in the 56th Armored Infantry Battalion, Twelfth Armored Division.

      (3) John R. Fox, who served as a first lieutenant in the 366th Infantry Regiment, 92nd Infantry Division.

      (4) Willy F. James, Jr., who served as a private first class in the 413th Infantry Regiment, 104th Infantry Division.

      (5) Ruben Rivers, who served as a staff sergeant in the 761st Tank Battalion.

      (6) Charles L. Thomas, who served as a first lieutenant in the 614th Tank Destroyer Battalion.

      (7) George Watson, who served as a private in the 29th Quartermaster Regiment.

    (c) POSTHUMOUS AWARD- The Medal of Honor may be awarded under this section posthumously, as provided in section 3752 of title 10, United States Code.

    (d) PRIOR AWARD- The Medal of Honor may be awarded under this section for service for which a Distinguished-Service Cross, or other award, has been awarded.

SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO SPECIFIED PERSONS.

    (a) WAIVER OF TIME LIMITATION- Any limitation established by law or policy for the time within which a recommendation for the award of a military decoration or award must be submitted shall not apply in the case of awards of decorations as described in subsection (b), the award of each such decoration having been determined by the Secretary of the Navy to be warranted in accordance with section 1130 of title 10, United States Code.

    (b) DISTINGUISHED FLYING CROSS- Subsection (a) applies to awards of the Distinguished Flying Cross for service during World War II as follows:

      (1) FIRST AWARD- First award, for completion of at least 20 qualifying combat missions, to the following members and former members of the Armed Forces:

        Vernard V. Aiken of Wilmington, Vermont.

        Ira V. Babcock of Dothan, Georgia.

        George S. Barlow of Grafton, Virginia.

        Earl A. Bratton of Bodega Bay, California.

        Travis C. Cork of Leesburg, Florida.

        Herman C. Edwards of Johns Island, South Carolina.

        Norman J. Ehr of Kiel, Wisconsin.

        James M. Fitzgerald of Anchorage, Alaska.

        Raymond C. Gordon of Sherborn, Massachusetts.

        Paul L. Hitchcock of Raleigh, North Carolina.

        Harold H. Hottle of Hillsboro, Ohio.

        Samuel M. Keith of Anderson, South Carolina.

        Stanley J. Ksiadz of Cheektowaga, New York.

        Otis Lancaster of Wyoming, Michigan.

        Robert W. Lorette of Wilton, New Hampshire.

        John B. McCabe of Biglerville, Pennsylvania.

        James P. Merriman of Midland, Texas.

        The late Michael L. Michalak, formerly of Akron, New York.

        The late Edward J. Naparkowsky, formerly of Hartford, Connecticut.

        Pete G. Nicora of Warren, Ohio.

        Stanley J. Orlowski of Jackson, Michigan.

        Raymond A. Peischl of Allentown, Pennsylvania.

        A. Jerome Pfeiffer of Racine, Wisconsin.

        Duane L. Rhodes of Earp, California.

        Frank V. Roach of Bloomfield, New Jersey.

        Arnold V. Rosekrans of Horseheads, New York.

        Joseph E. Seaman, Jr. of Bordentown, New Jersey.

        Richard F. Shumaker of Hilliard, Ohio.

        Luther E. Thomas of Panama City, Florida.

        Merton S. Ward of South Hamilton, Massachusetts.

        Simon L. Webb of Magnolia, Mississippi.

        Jerry W. Webster of Leander, Texas.

      (2) SECOND AWARD- Second award, for completion of at least 40 qualifying combat missions, to the following members and former members of the Armed Forces:

        Arthur C. Adair of Grants Pass, Oregon.

        Robert B. Carnes of West Yarmouth, Massachusetts.

        Daniel K. Connors of Hampton, New Hampshire.

        Glen E. Danielson of Whittier, California.

        Ralph J. Deceuster of Dover, Ohio.

        Albert P. Emsley of Bothell, Washington.

        Urbain J. Fournier of Houma, Louisiana.

        Prescott C. Jernegan of Hemet, California.

        Stephen K. Johnson of Englewood, Florida.

        Warren E. Johnson of Vista, California.

        Elbert J. Kimble of San Francisco, California.

        George W. Knauff of Monument, Colorado.

        John W. Lincoln of Rockland, Massachusetts.

        Alan D. Marker of Sonoma, California.

        Joseph J. Oliver of White Haven, Pennsylvania.

        Shefield Phelps of Seattle, Washington.

        John B. Tagliapiri of St. Helena, California.

        Dewilles A.H.W. Schwartz of Watertown, South Dakota.

        Ray B. Stiltner of Centralia, Washington.

      (3) THIRD AWARD- Third award, for completion of at least 60 qualifying combat missions, to the following members and former members of the Armed Forces:

        Glenn Bowers of Dillsburg, Pennsylvania.

        Arthur C. Casey of Irving, California.

        Robert J. Larsen of Gulf Breeze, Florida.

        David Mendoza of McAllen, Texas.

        William A. Nickerson of Portland, Oregon.

        Maurice F. Smith of Sequim, Washington.

      (4) FOURTH AWARD- Fourth award, for completion of at least 80 qualifying combat missions, to the following members and former members of the Armed Forces:

        Robert Bair of Ontario, California.

        Arvid L. Kretz of Santa Rosa, California.

        George E. McClane of Cocoa Beach, Florida.

        Orville R. Swick of Issaquah, Washington.

      (5) FIFTH AWARD- Fifth award, for completion of at least 100 qualifying combat missions, to the following members and former members of the Armed Forces:

        William A. Baldwin of San Clemente, California.

        George Bobb of Blackwood, New Jersey.

        John R. Conrad of Hot Springs, Arkansas.

        Herbert R. Hetrick of Roaring Springs, Pennsylvania.

        William L. Wells of Cordele, Georgia.

      (6) SIXTH AWARD- Sixth award, for completion of at least 120 qualifying combat missions, to Richard L. Murray of Dallas, Texas.

SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN RIBBONS.

    (a) REPLACEMENT RIBBONS- The Secretary of the Army, pursuant to section 3751 of title 10, United States Code, may replace any World War II decoration known as the American Theater Campaign Ribbon that was awarded to a person listed in the order described in subsection (b).

    (b) RIBBONS PROPERLY AWARDED- Any person listed in the document titled ‘General Order Number 1’, issued by the Third Auxiliary Surgical Group, APO 647, United States Army, dated February 1, 1943, shall be considered to have been properly awarded the American Theater Campaign Ribbon for service during World War II.

Subtitle H--Other Matters

SEC. 571. HATE CRIMES IN THE MILITARY.

    (a) HUMAN RELATIONS TRAINING- (1) The Secretary of Defense shall ensure that the Secretary of each military department conducts ongoing programs for human relations training for all members of the Armed Forces under the jurisdiction of the Secretary. Matters to be covered by such training include race relations, equal opportunity, opposition to gender discrimination, and sensitivity to ‘hate group’ activity. Such training shall be provided during basic training (or other initial military training) and on a regular basis thereafter.

    (2) The Secretary of Defense shall also ensure that unit commanders are aware of their responsibilities in ensuring that impermissible activity based upon discriminatory motives does not occur in units under their command.

    (b) INFORMATION TO BE PROVIDED TO PROSPECTIVE RECRUITS- The Secretary of Defense shall ensure that each individual preparing to enter an officer accession program or to execute an original enlistment agreement is provided information concerning the meaning of the oath of office or oath of enlistment for service in the Armed Forces in terms of the equal protection and civil liberties guarantees of the Constitution, and each such individual shall be informed that if supporting those guarantees is not possible personally for that individual, then that individual should decline to enter the Armed Forces.

    (c) ANNUAL SURVEY- (1) Section 451 of title 10, United States Code, is amended to read as follows:

-‘Sec. 451. Race relations, gender discrimination, and hate group activity: annual survey and report

    ‘(a) ANNUAL SURVEY- The Secretary of Defense shall carry out an annual survey to measure the state of racial, ethnic, and gender issues and discrimination among members of the Armed Forces serving on active duty and the extent (if any) of activity among such members that may be seen as so-called ‘hate group’ activity. The survey shall solicit information on the

race relations and gender relations climate in the Armed Forces, including--

      ‘(1) indicators of positive and negative trends of relations among all racial and ethnic groups and between the sexes;

      ‘(2) the effectiveness of Department of Defense policies designed to improve race, ethnic, and gender relations; and

      ‘(3) the effectiveness of current processes for complaints on and investigations into racial, ethnic, and gender discrimination.

    ‘(b) IMPLEMENTING ENTITY- The Secretary shall carry out each annual survey through the entity in the Department of Defense known as the Armed Forces Survey on Race/Ethnic Issues.

    ‘(c) REPORTS TO CONGRESS- Upon completion of each annual survey under subsection (a), the Secretary shall submit to Congress a report containing the results of the survey.’.

    (2) The item relating to such section in the table of sections at the beginning of chapter 22 of such title is amended to read as follows:

‘451. Race relations, gender discrimination, and hate group activity: annual survey and report.’.

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

    (a) ELIGIBILITY FOR RETIREMENT- Section 1201 of title 10, United States Code, is amended--

      (1) by striking out the matter preceding paragraph (1) and inserting in lieu thereof the following:

    ‘(a) RETIREMENT- Upon a determination by the Secretary concerned that a member described in subsection (c) is unfit to perform the duties of the member’s office, grade, rank, or rating because of physical disability incurred while entitled to basic pay or while absent as described in subsection (c)(3), the Secretary may retire the member, with retired pay computed under section 1401 of this title, if the Secretary also makes the determinations with respect to the member and that disability specified in subsection (b).

    ‘(b) REQUIRED DETERMINATIONS OF DISABILITY- Determinations referred to in subsection (a) are determinations by the Secretary that--’; and

      (2) by adding at the end the following:

    ‘(c) ELIGIBLE MEMBERS- This section and sections 1202 and 1203 of this title apply to the following members:

      ‘(1) A member of a regular component of the armed forces entitled to basic pay.

      ‘(2) Any other member of the armed forces entitled to basic pay who has been called or ordered to active duty (other than for training under section 10148(a) of this title) for a period of more than 30 days.

      ‘(3) Any other member of the armed forces who is on active duty but is not entitled to basic pay by reason of section 502(b) of title 37 due to authorized absence (A) to participate in an educational program, or (B) for an emergency purpose, as determined by the Secretary concerned.’.

    (b) ELIGIBILITY FOR PLACEMENT ON TEMPORARY DISABILITY RETIREMENT LIST- Section 1202 of title 10, United States Code, is amended by striking out ‘a member of a regular component’ and all that follows through ‘more than 30 days,’ and inserting in lieu thereof ‘a member described in section 1201(c) of this title’.

    (c) ELIGIBILITY FOR SEPARATION- Section 1203 of title 10, United States Code, is amended by striking out the matter preceding paragraph (1) and inserting in lieu thereof the following:

    ‘(a) SEPARATION- Upon a determination by the Secretary concerned that a member described in section 1201(c) of this title is unfit to perform the duties of the member’s office, grade, rank, or rating because of physical disability incurred while entitled to basic pay or while absent as described in section 1201(c)(3) of this title, the member may be separated from the member’s armed force, with severance pay computed under section 1212 of this title, if the Secretary also makes the determinations with respect to the member and that disability specified in subsection (b).

    ‘(b) REQUIRED DETERMINATIONS OF DISABILITY- Determinations referred to in subsection (a) are determinations by the Secretary that--’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply with respect to physical disabilities incurred on or after such date.

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

    Section 1044a(b) of title 10, United States Code, is amended--

      (1) in paragraph (1), by striking out ‘on active duty or performing inactive-duty training’ and inserting in lieu thereof ‘, including reserve judge advocates when not in a duty status’;

      (2) in paragraph (3), by striking out ‘adjutants on active duty or performing inactive-duty training’ and inserting in lieu thereof ‘adjutants, including reserve members when not in a duty status’; and

      (3) in paragraph (4), by striking out ‘persons on active duty or performing inactive-duty training’ and inserting in lieu thereof ‘members of the armed forces, including reserve members when not in a duty status,’.

SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN FEDERAL SERVICE.

    (a) ESTABLISHMENT- The Secretary of Defense shall establish a panel to review the various authorities for court-martial and nonjudicial punishment jurisdiction for the National Guard not in Federal service and the use of those authorities.

    (b) MEMBERSHIP- The Secretary shall appoint the members of the panel so as to ensure representation of the following:

      (1) The State Adjutants General of the National Guard.

      (2) The State Attorneys General.

      (3) The Joint Service Committee on Military Justice of the Department of Defense.

    (c) DUTIES- Matters reviewed by the panel shall include the following:

      (1) The extent of the use of court-martial and nonjudicial punishment authority for the National Guard not in Federal service.

      (2) The extent to which the authority used is--

        (A) authority under title 32, United States Code; or

        (B) authority under State law.

    (d) REPORT- (1) Not later than February 1, 1997, the panel shall submit a report on the panel’s findings and conclusions to the Secretary of Defense.

    (2) The report shall include recommended legislation for amending title 32, United States Code--

      (A) to increase the uniformity in State use of courts-martial and nonjudicial punishment for the National Guard when not in Federal service; and

      (B) to achieve increased comparability between the court-martial and nonjudicial punishment procedures that are applicable to the National Guard not in Federal service and the court-martial and nonjudicial punishment procedures that are applicable under the Uniform Code of Military Justice to the National Guard in Federal service.

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

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

    Section 1152(g) of title 10, United States Code, is amended--

      (1) by striking out ‘(g) CONDITIONAL EXPANSION OF PLACEMENT TO INCLUDE FIREFIGHTERS- (1) Subject to paragraph (2), the’ and inserting in lieu thereof ‘(g) AUTHORITY TO EXPAND PLACEMENT TO INCLUDE FIREFIGHTERS- The’; and

      (2) in paragraph (2)--

        (A) by striking out the first sentence; and

        (B) in the second sentence, by inserting ‘authorized by this subsection’ after ‘expansion’.

SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT AS TEACHERS OR TEACHERS’ AIDES.

    (a) PROGRAM FOR SEPARATED MEMBERS- (1) Section 1151 of title 10, United States Code, is amended--

      (A) in subsection (f)(2), by striking out ‘five school years’ in subparagraphs (A) and (B) and inserting in lieu thereof ‘two school years’; and

      (B) in subsection (h)(3)(A), by striking out ‘five consecutive school years’ and inserting in lieu thereof ‘two consecutive school years’.

    (2) Subsection (g)(2) of such section is amended--

      (A) by striking out the comma after ‘section 1174a of this title’ and inserting in lieu thereof ‘or’; and

      (B) by striking out ‘, or retires pursuant to the authority provided in section 4403 of the National Defense Authorization Act for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293 note)’.

    (3) Subsection (h)(3)(B) of such section is amended--

      (A) in clause (i), by striking out ‘$25,000’ and inserting in lieu thereof ‘$17,000’;

      (B) in clause (ii)--

        (i) by striking out ‘40 percent’ and inserting in lieu thereof ‘25 percent’; and

        (ii) by striking out ‘$10,000’ and inserting in lieu thereof ‘$8,000’; and

      (C) by striking out clauses (iii), (iv), and (v).

    (b) SEPARATED CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE- Section 1598(d)(2) of such title is amended by striking out ‘five school years’ in subparagraphs (A) and (B) and inserting in lieu thereof ‘two school years’.

    (c) DISPLACED DEPARTMENT OF DEFENSE CONTRACTOR EMPLOYEES- Section 2410j(f)(2) of such title is amended by striking out ‘five school years’ in subparagraphs (A) and (B) and inserting in lieu thereof ‘two school years’.

    (d) SAVINGS PROVISION- The amendments made by this section do not affect obligations under agreements entered into in accordance with section 1151, 1598, or 2410j of title 10, United States Code, before the date of the enactment of this Act.

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

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

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

    (a) REPEAL OF APPLICABILITY OF AUTHORITIES TO DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES AND CONTRACTOR EMPLOYEES- (1) Section 1501 of title 10, United States Code, is amended--

      (A) in subsection (c)--

        (i) by striking out ‘applies in the case of’ and all that follows through ‘(1) Any member’ and inserting in lieu thereof ‘applies in the case of any member’; and

        (ii) by striking out paragraph (2); and

      (B) by striking out subsection (f).

    (2) Section 1503(c) of such title is amended--

      (A) in paragraph (1), by striking out ‘one individual described in paragraph (2)’ and inserting in lieu thereof ‘one military officer’;

      (B) by striking out paragraph (2); and

      (C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

    (3) Section 1504(d) of such title is amended--

      (A) by striking out the text of paragraph (1) and inserting in lieu thereof the following new text: ‘A board appointed under this section shall be composed of at least three members who are officers having the grade of major or lieutenant commander or above.’; and

      (B) in paragraph (4), by striking out ‘section 1503(c)(4)’ and inserting in lieu thereof ‘section 1503(c)(3)’.

    (4) Paragraph (1) of section 1513 of such title is amended to read as follows:

      ‘(1) The term ‘missing person’ means a member of the armed forces on active duty who is in a missing status.’.

    (b) REPORT ON PRELIMINARY ASSESSMENT OF STATUS- (1) Section 1502 of such title is amended--

      (A) in subsection (a)(2)--

        (i) by striking out ‘48 hours’ and inserting in lieu thereof ‘10 days’; and

        (ii) by striking out ‘theater component commander with jurisdiction over the missing person’ and inserting in lieu thereof ‘Secretary concerned’;

      (B) by striking out subsection (b);

      (C) by redesignating subsection (c) as subsection (b); and

      (D) in subsection (b), as so redesignated, by striking out the second sentence.

    (2) Section 1503(a) of such title is amended by striking out ‘section 1502(b)’ and inserting in lieu thereof ‘section 1502(a)’.

    (3) Section 1513 of such title is amended by striking out paragraph (8).

    (c) FREQUENCY OF SUBSEQUENT REVIEWS- Subsection (b) of section 1505 of such title is amended to read as follows:

    ‘(b) FREQUENCY OF SUBSEQUENT REVIEWS- The Secretary concerned shall conduct inquiries into the whereabouts and status of a person under subsection (a) upon receipt of information that may result in a change of status of the person. The Secretary concerned shall appoint a board to conduct such inquiries.’.

    (d) REPEAL OF STATUTORY PENALTIES FOR WRONGFUL WITHHOLDING OF INFORMATION- Section 1506 of such title is amended--

      (1) by striking out subsection (e); and

      (2) by redesignating subsection (f) as subsection (e).

    (e) INFORMATION TO ACCOMPANY RECOMMENDATION OF STATUS OF DEATH- Section 1507(b) of such title is amended by striking out paragraphs (3) and (4).

    (f) SCOPE OF PREENACTMENT REVIEW- (1) Section 1509 of such title is amended--

      (A) by striking out subsection (c); and

      (B) by redesignating subsection (d) as subsection (c).

    (2)(A) The heading of such section is amended by striking out ‘, special interest’.

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

Subtitle I--Commissioned Corps of the Public Health Service

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

    (a) PROHIBITION ON COUNTING ENLISTED SERVICE PERFORMED WHILE AT SERVICE ACADEMY- Subsection (a) of section 971 of title 10, United States Code, is amended by inserting before the period at the end the following: ‘or an officer in the Commissioned Corps of the Public Health Service’.

    (b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MIDSHIPMAN- Subsection (b) of such section is amended to read as follows:

    ‘(b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MIDSHIPMAN- In computing length of service for any purpose, service as a cadet or midshipman may not be credited to any of the following officers:

      ‘(1) An officer of the Navy or Marine Corps.

      ‘(2) A commissioned officer of the Army or Air Force.

      ‘(3) An officer of the Coast Guard.

      ‘(4) An officer in the commissioned corps of the Public Health Service.’.

    (c) TECHNICAL AMENDMENTS- (1) Such section is further amended by adding at the end the following new subsection:

    ‘(c) SERVICE AS A CADET OR MIDSHIPMAN DEFINED- In this section, the term ‘service as a cadet or midshipman’ means--

      ‘(1) service as a cadet at the United States Military Academy, United States Air Force Academy, or United States Coast Guard Academy; or

      ‘(2) service as a midshipman at the United States Naval Academy.’.

    (2) Subsection (a) of such section is further amended--

      (A) by inserting ‘PROHIBITION ON COUNTING ENLISTED SERVICE PERFORMED WHILE AT SERVICE ACADEMY OR IN NAVAL RESERVE- ’ after ‘(a)’; and

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

    (3) The heading of such section, and the item relating to such section in the table of sections at the beginning of chapter 49 of such title, are amended by striking out the seventh word.

SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH SERVICE OFFICERS ASSIGNED TO THE DEPARTMENT OF DEFENSE.

    Section 206 of the Public Health Service Act (42 U.S.C. 207) is amended by adding at the end the following new subsection:

    ‘(f) In computing the maximum number of commissioned officers of the Public Health Service authorized by law or administrative determination to serve on active duty, there may be excluded from such computation officers who are assigned to duty in the Department of Defense.’.

SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC HEALTH SERVICE OFFICERS.

    (a) LEGAL ASSISTANCE AVAILABLE- Subsection (a) of section 1044 of title 10, United States Code, is amended by striking out paragraph (3) and inserting in lieu thereof the following:

      ‘(3) Officers of the commissioned corps of the Public Health Service who are on active duty or entitled to retired or equivalent pay.

      ‘(4) Dependents of members and former members described in paragraphs (1), (2), and (3).’.

    (b) LIMITATION ON ASSISTANCE- Subsection (c) of such section is amended--

      (1) by striking out ‘armed forces’ and inserting in lieu thereof ‘uniformed services described in subsection (a)’; and

      (2) by inserting ‘such’ after ‘dependent of’.

    (c) CLARIFYING AMENDMENTS- Subsection (a) of such section is further amended by striking out ‘under his jurisdiction’ in paragraphs (1) and (2).

    (d) STYLISTIC AMENDMENTS- Subsection (a) of such section is further amended--

      (1) in the matter preceding paragraph (1), by striking out ‘to--’ and inserting in lieu thereof ‘to the following persons:’;

      (2) by capitalizing the first letter of the first word of paragraphs (1) and (2);

      (3) by striking out the semicolon at the end of paragraph (1) and inserting in lieu thereof a period; and

      (4) by striking out ‘; and’ at the end of paragraph (2) and inserting in lieu thereof a period.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.

Sec. 602. Adjustment of rate of cadet and midshipman pay.

Sec. 603. Pay of senior noncommissioned officers while hospitalized.

Sec. 604. Availability of basic allowance for quarters for certain members without dependents who serve on sea duty.

Sec. 605. Uniform applicability of discretion to deny an election not to occupy Government quarters.

Sec. 606. Establishment of minimum monthly amount of variable housing allowance for high housing cost areas.

Sec. 607. Family separation allowance for members separated by military orders from spouses who are members.

Sec. 608. Waiver of time limitations for claim for pay and allowances.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay authorities for Reserve forces.

Sec. 612. One-year extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. One-year extension of authorities relating to payment of other bonuses and special pays.

Sec. 614. Special pay for certain Public Health Service officers.

Sec. 615. Special incentives to recruit and retain dental officers.

Sec. 616. Foreign language proficiency pay for Public Health Service and National Oceanic and Atmospheric Administration officers.

Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at Government expense.

Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic allowance for quarters.

Sec. 623. Allowance for travel performed in connection with leave between consecutive overseas tours.

Sec. 624. Funding for transportation of household effects of Public Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment for fiscal year 1998.

Sec. 632. Clarification of initial computation of retiree COLAs after retirement.

Sec. 633. Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution.

Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.

Sec. 635. Increases in Survivor Benefit Plan contributions to be effective concurrently with payment of retired pay cost-of-living increases.

Sec. 636. Amendments to the Uniformed Services Former Spouses’ Protection Act.

Sec. 637. Prevention of circumvention of court order by waiver of retired pay to enhance civil service retirement annuity.

Sec. 638. Administration of benefits for so-called minimum income widows.

Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer pay.

Sec. 652. Reimbursement for adoption expenses incurred in adoptions through private placements.

Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from certain separation pay.

Sec. 654. Technical correction clarifying limitation on furnishing clothing or allowances for enlisted National Guard technicians.

Sec. 655. Technical correction to prior authority for payment of back pay to certain persons.

Sec. 656. Compensation for persons awarded prisoner of war medal who did not previously receive compensation as a prisoner of war.

Sec. 657. Payments to certain persons captured and interned by North Vietnam.

Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997.

    (a) WAIVER OF SECTION 1009 ADJUSTMENT- Any adjustment required by section 1009 of title 37, United States Code, in elements of compensation of members of the uniformed services to become effective during fiscal year 1997 shall not be made.

    (b) INCREASE IN BASIC PAY AND BAS- Effective on January 1, 1997, the rates of basic pay and basic allowance for subsistence of members of the uniformed services are increased by 3.0 percent.

    (c) INCREASE IN BAQ- Effective on January 1, 1997, the rates of basic allowance for quarters of members of the uniformed services are increased by 4.6 percent.

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

    Section 203(c) of title 37, United States Code, is amended--

      (1) by striking out paragraph (2); and

      (2) in paragraph (1), by striking out ‘(1)’.

SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE HOSPITALIZED.

    (a) PAY DURING HOSPITALIZATION- Section 210 of title 37, United States Code, is amended--

      (1) by redesignating subsection (b) as subsection (c); and

      (2) by inserting after subsection (a) the following new subsection (b):

    ‘(b) A noncommissioned officer of an armed force who is hospitalized and who, during or immediately before such hospitalization, completed service as the senior enlisted member of that armed force, shall continue to be entitled, for not more than 180 days while so hospitalized, to the rate of basic pay authorized for the senior enlisted member of that armed force.’.

    (b) CLERICAL AMENDMENTS- (1) The heading of such section is amended to read as follows:

‘Sec. 210. Pay of senior enlisted members during terminal leave and while hospitalized’.

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

      ‘210. Pay of senior enlisted members during terminal leave and while hospitalized.’.

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

    (a) ENTITLEMENT OF SINGLE MEMBERS ABOVE GRADE E-5- Section 403(c)(2) of title 37, United States Code, is amended--

      (1) by striking out ‘A member’ in the first sentence and inserting in lieu thereof ‘(A) Except as provided in subparagraphs (B) and (C), a member’; and

      (2) by striking out the second sentence.

    (b) ENTITLEMENT OF CERTAIN SINGLE MEMBERS IN GRADE E-5- Such section is further amended by adding at the end the following new subparagraph:

    ‘(B) Under regulations prescribed by the Secretary concerned, the Secretary may authorize the payment of a basic allowance for quarters to a member of a uniformed service without dependents who is serving in pay grade E-5 and is assigned to sea duty. In prescribing regulations under this subparagraph, the Secretary concerned shall consider the availability of quarters for members serving in pay grade E-5.’.

    (c) ENTITLEMENT WHEN BOTH SPOUSES IN GRADES BELOW GRADE E-6 ARE ASSIGNED TO SEA DUTY- Such section is further amended by inserting after subparagraph (B), as added by subsection (b), the following new subparagraph:

    ‘(C) Notwithstanding section 421 of this title, two members of the uniformed services in a pay grade below pay grade E-6 who are married to each other, have no other dependents, and are simultaneously assigned to sea duty are jointly entitled to one basic allowance for quarters during the period of such simultaneous sea duty. The amount of the allowance shall be based on the without dependents rate for the pay grade of the senior member of the couple. However, this subparagraph shall not apply to a couple if one or both of the members are entitled to a basic allowance for quarters under subparagraph (B).’.

    (d) CONFORMING AMENDMENT REGARDING VARIABLE HOUSING ALLOWANCE- Section 403a(b)(2)(C) of title 37, United States Code, is amended by striking out ‘E-6’ and inserting in lieu thereof ‘E-4’.

    (e) EFFECTIVE DATE- The amendments made by this section shall take effect on July 1, 1997.

SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN ELECTION NOT TO OCCUPY GOVERNMENT QUARTERS.

    Section 403(b)(3) of title 37, United States Code, is amended by striking out ‘A member’ and inserting in lieu thereof ‘Subject to the provisions of subsection (j), a member’.

SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE HOUSING ALLOWANCE FOR HIGH HOUSING COST AREAS.

    (a) MINIMUM MONTHLY AMOUNT OF ALLOWANCE- Subsection (c) of section 403a of title 37, United States Code, is amended by striking out paragraph (1) and inserting in lieu thereof the following new paragraph:

    ‘(1) The monthly amount of a variable housing allowance under this section for a member of a uniformed service with respect to an area is equal to the greater of the following amounts:

      ‘(A) An amount equal to the difference between--

        ‘(i) the median monthly cost of housing in that area for members of the uniformed services serving in the same pay grade and with the same dependency status as that member; and

        ‘(ii) 80 percent of the median monthly cost of housing in the United States for members of the uniformed services serving in the same pay grade and with the same dependency status as that member.

      ‘(B) An amount equal to the difference between--

        ‘(i) the adequate housing allowance floor determined by the Secretary of Defense for all members of the uniformed services in that area entitled to a variable housing allowance under this section; and

        ‘(ii) the monthly basic allowance for quarters for members of the uniformed services serving in the same pay grade and with the same dependency status as that member.’.

    (b) ADEQUATE HOUSING ALLOWANCE FLOOR- Such subsection is further amended by adding at the end the following new paragraph:

    ‘(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of Defense shall establish an adequate housing allowance floor for members of the uniformed services in an area as a selected percentage, not to exceed 85 percent, of the cost of adequate housing in that area based on an index of housing costs selected by the Secretary of Defense from among the following:

      ‘(i) The fair market rentals established annually by the Secretary of Housing and Urban Development under section 8(c)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)).

      ‘(ii) An index developed in the private sector that the Secretary of Defense determines is comparable to the fair market rentals referred to in clause (i) and is appropriate for use to determine the adequate housing allowance floor.

    ‘(B) The Secretary of Defense shall carry out this paragraph in consultation with the Secretary of Transportation, the Secretary of Commerce, and the Secretary of Health and Human Services.’.

    (c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR ALLOWANCE- Subsection (d)(3) of such section is amended in the second sentence by striking out ‘the second sentence of subsection (c)(3)’ and inserting in lieu thereof ‘paragraph (1)(B) of subsection (c) and the second sentence of paragraph (3) of that subsection’.

    (d) CONFORMING AMENDMENTS- Subsection (c) of such section is further amended--

      (1) in paragraph (3), by striking out ‘this subsection’ in the first sentence and inserting in lieu thereof ‘paragraph (1)(A) or the minimum amount of a variable housing allowance under paragraph (1)(B)’; and

      (2) in paragraph (5), by inserting ‘or minimum amount of a variable housing allowance’ after ‘costs of housing’.

    (e) EFFECTIVE DATE- The amendments made by this section shall take effect on January 1, 1997, except that the Secretary of Defense may delay implementation of the requirements imposed by the amendments to such later date as the Secretary considers appropriate upon publication of notice to that effect in the Federal Register.

SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY MILITARY ORDERS FROM SPOUSES WHO ARE MEMBERS.

    (a) ADDITIONAL BASIS FOR ALLOWANCE- Paragraph (1) of section 427(b) of title 37, United States Code, is amended--

      (1) by striking out ‘or’ at the end of subparagraph (B);

      (2) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ‘; or’; and

      (3) by adding at the end the following new subparagraph:

      ‘(D) the member is married to a member of a uniformed service, the member has no dependent other than the spouse, the two members are separated by reason of the execution of military orders, and the two members were residing together immediately before being separated by reason of execution of military orders.’.

    (b) CONFORMING AMENDMENT- Such section is further amended by adding at the end the following new paragraph:

    ‘(5) Section 421 of this title does not apply to bar an entitlement to an allowance under paragraph (1)(D). However, not more than one monthly allowance may be paid with respect to a married couple under paragraph (1)(D) for any month.’.

SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND ALLOWANCES.

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

    ‘(e)(1) Upon the request of the Secretary concerned (as defined in section 101 of title 37, United States Code), the Comptroller General may waive the time limitations set forth in subsection (b) or (c) in the case of a claim for pay or allowances provided under title 37 and, subject to paragraph (2), settle the claim.

    ‘(2) Payment of a claim settled under paragraph (1) shall be subject to the availability of appropriations for payment of that particular claim.

    ‘(3) This subsection does not apply to a claim in excess of $25,000.’.

Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) SPECIAL PAY FOR CRITICALLY SHORT WARTIME HEALTH SPECIALISTS- Section 302g(f) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (b) SELECTED RESERVE REENLISTMENT BONUS- Section 308b(f) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (c) SELECTED RESERVE ENLISTMENT BONUS- Section 308c(e) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (d) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN HIGH PRIORITY UNITS- Section 308d(c) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (e) SELECTED RESERVE AFFILIATION BONUS- Section 308e(e) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (f) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS- Section 308h(g) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (g) PRIOR SERVICE ENLISTMENT BONUS- Section 308i(i) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

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

    (a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM- Section 2130a(a)(1) of title 10, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (b) ACCESSION BONUS FOR REGISTERED NURSES- Section 302d(a)(1) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS- Section 302e(a)(1) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

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

    (a) AVIATION OFFICER RETENTION BONUS- Section 301b(a) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998,’.

    (b) REENLISTMENT BONUS FOR ACTIVE MEMBERS- Section 308(g) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (c) ENLISTMENT BONUSES FOR CRITICAL SKILLS- Sections 308a(c) and 308f(c) of title 37, United States Code, are each amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (d) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS EXTENDING PERIOD OF ACTIVE SERVICE- Section 312(e) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (e) NUCLEAR CAREER ACCESSION BONUS- Section 312b(c) of title 37, United States Code, is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1998’.

    (f) NUCLEAR CAREER ANNUAL INCENTIVE BONUS- Section 312c(d) of title 37, United States Code, is amended by striking out ‘October 1, 1997’ and inserting in lieu thereof ‘October 1, 1998’.

    (g) REPAYMENT OF EDUCATION LOANS FOR CERTAIN HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE- Section 16302(d) of title 10, United States Code, is amended by striking out ‘October 1, 1997’ and inserting in lieu thereof ‘October 1, 1998’.

SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE OFFICERS.

    (a) OPTOMETRISTS- Section 302a(b) of title 37, United States Code, is amended--

      (1) in paragraph (2)--

        (A) by striking out ‘an armed force’ in the matter preceding subparagraph (A) and inserting in lieu thereof ‘a uniformed service’; and

        (B) by striking out ‘of the military department’ in subparagraph (C); and

      (2) in paragraph (4), by striking out ‘of the military department’.

    (b) NONPHYSICIAN HEALTH CARE PROVIDERS- Section 302c(d) of title 37, United States Code, is amended--

      (1) in the matter preceding paragraph (1), by striking out ‘Secretary of Defense’ and inserting in lieu thereof ‘Secretary concerned’; and

      (2) in paragraph (1)--

        (A) by striking out ‘or’ the third place it appears; and

        (B) by inserting before the period at the end the following: ‘, or an officer in the Regular or Reserve Corps of the Public Health Service’.

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

    (a) VARIABLE, ADDITIONAL, AND BOARD CERTIFIED SPECIAL PAYS FOR ACTIVE DUTY DENTAL OFFICERS- Section 302b(a) of title 37, United States Code, is amended--

      (1) in paragraph (2)--

        (A) in subparagraph (A), by striking out ‘$1,200’ and inserting in lieu thereof ‘$3,000’;

        (B) in subparagraph (B), by striking out ‘$2,000’ and inserting in lieu thereof ‘$7,000’; and

        (C) in subparagraph (C), by striking out ‘$4,000’ and inserting in lieu thereof ‘$7,000’;

      (2) in paragraph (4), by striking out subparagraphs (A), (B), and (C) and inserting in lieu thereof the following:

      ‘(A) $4,000 per year, if the officer has less than three years of creditable service.

      ‘(B) $6,000 per year, if the officer has at least three but less than 14 years of creditable service.

      ‘(C) $8,000 per year, if the officer has at least 14 but less than 18 years of creditable service.

      ‘(D) $10,000 per year, if the officer has at least 18 or more years of creditable service.’; and

      (3) in paragraph (5), by striking out subparagraphs (A), (B), and (C) and inserting in lieu thereof the following:

      ‘(A) $2,500 per year, if the officer has less than 10 years of creditable service.

      ‘(B) $3,500 per year, if the officer has at least 10 but less than 12 years of creditable service.

      ‘(C) $4,000 per year, if the officer has at least 12 but less than 14 years of creditable service.

      ‘(D) $5,000 per year, if the officer has at least 14 but less than 18 years of creditable service.

      ‘(E) $6,000 per year, if the officer has 18 or more years of creditable service.’.

    (b) RESERVE DENTAL OFFICERS SPECIAL PAY- Section 302b of title 37, United States Code, is amended by adding at the end the following new subsection:

    ‘(h) RESERVE DENTAL OFFICERS SPECIAL PAY- (1) A reserve dental officer described in paragraph (2) is entitled to special pay at the rate of $350 a month for each month of active duty, including active duty in the form of annual training, active duty for training, and active duty for special work.

    ‘(2) A reserve dental officer referred to in paragraph (1) is a reserve officer who--

      ‘(A) is an officer of the Dental Corps of the Army or the Navy or an officer of the Air Force designated as a dental officer; and

      ‘(B) is on active duty under a call or order to active duty for a period of less than one year.’.

    (c) ACCESSION BONUS FOR DENTAL SCHOOL GRADUATES WHO ENTER THE ARMED FORCES- (1) Chapter 5 of title 37, United States Code, is amended by inserting after section 302g the following new section:

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

    ‘(a) ACCESSION BONUS AUTHORIZED- (1) A person who is a graduate of an accredited dental school and who, during the period beginning on the date of the enactment of this section, and ending on September 30, 2002, executes a written agreement described in subsection (c) to accept a commission as an officer of the armed forces and remain on active duty for a period of not less than four years may, upon the acceptance of the agreement by the Secretary concerned, be paid an accession bonus in an amount determined by the Secretary concerned.

    ‘(2) The amount of an accession bonus under paragraph (1) may not exceed $30,000.

    ‘(b) LIMITATION ON ELIGIBILITY FOR BONUS- A person may not be paid a bonus under subsection (a) if--

      ‘(1) the person, in exchange for an agreement to accept an appointment as an officer, received financial assistance from the Department of Defense to pursue a course of study in dentistry; or

      ‘(2) the Secretary concerned determines that the person is not qualified to become and remain certified and licensed as a dentist.

    ‘(c) AGREEMENT- The agreement referred to in subsection (a) shall provide that, consistent with the needs of the armed service concerned, the person executing the agreement will be assigned to duty, for the period of obligated service covered by the agreement, as an officer of the Dental Corps of the Army or the Navy or an officer of the Air Force designated as a dental officer.

    ‘(d) REPAYMENT- (1) An officer who receives a payment under subsection (a) and who fails to become and remain certified or licensed as a dentist during the period for which the payment is made shall refund to the United States an amount equal to the full amount of such payment.

    ‘(2) An officer who voluntarily terminates service on active duty before the end of the period agreed to be served under subsection (a) shall refund to the United States an amount that bears the same ratio to the amount paid to the officer as the unserved part of such period bears to the total period agreed to be served.

    ‘(3) An obligation to reimburse the United States imposed under paragraph (1) or (2) is for all purposes a debt owed to the United States.

    ‘(4) A discharge in bankruptcy under title 11 that is entered less than five years after the termination of an agreement under this section does not discharge the person signing such agreement from a debt arising under such agreement or this subsection. This paragraph applies to any case commenced under title 11 after the date of the enactment of this section.’.

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

      ‘302h. Special pay: accession bonus for dental officers.’.

    (3) Section 303a of title 37, United States Code, is amended by striking out ‘302g’ each place it appears and inserting in lieu thereof ‘302h’.

    (d) REPORT ON ADDITIONAL ACTIVITIES TO INCREASE RECRUITMENT OF DENTISTS- Not later than April 1, 1997, the Secretary of Defense shall submit to Congress a report describing the feasibility of increasing the number of persons enrolled in the Armed Forces Health Professions Scholarship and Financial Assistance program who are pursuing a course of study in dentistry in anticipation of service as an officer of the Dental Corps of the Army or the Navy or an officer of the Air Force designated as a dental officer.

    (e) STYLISTIC AMENDMENTS- Section 302b of title 37, United States Code, is amended--

      (1) in subsection (a), by inserting ‘VARIABLE, ADDITIONAL, AND BOARD CERTIFICATION SPECIAL PAY- ’ after ‘(a)’;

      (2) in subsection (b), by inserting ‘ACTIVE-DUTY AGREEMENT- ’ after ‘(b)’;

      (3) in subsection (c), by inserting ‘REGULATIONS- ’ after ‘(c)’;

      (4) in subsection (d), by inserting ‘FREQUENCY OF PAYMENTS- ’ after ‘(d)’;

      (5) in subsection (e), by inserting ‘REFUND FOR PERIOD OF UNSERVED OBLIGATED SERVICE- ’ after ‘(e)’;

      (6) in subsection (f), by inserting ‘EFFECT OF DISCHARGE IN BANKRUPTCY- ’ after ‘(f)’; and

      (7) in subsection (g), by inserting ‘DETERMINATION OF CREDITABLE SERVICE- ’ after ‘(g)’.

SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH SERVICE AND NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION OFFICERS.

    (a) ELIGIBILITY- Subsection (a) of section 316 of title 37, United States Code, is amended--

      (1) in the matter preceding paragraph (1), by striking out ‘armed forces’ and inserting in lieu thereof ‘uniformed services’;

      (2) in paragraph (2)--

        (A) by striking out ‘Secretary of Defense’ and inserting in lieu thereof ‘Secretary concerned’; and

        (B) by inserting ‘or public health’ after ‘national defense’; and

      (3) in paragraph (3)--

        (A) in subparagraph (A), by striking out ‘military’ and inserting in lieu thereof ‘uniformed services’;

        (B) in subparagraph (C), by striking out ‘military’; and

        (C) in subparagraph (D)--

          (i) by striking out ‘Department of Defense’ and inserting in lieu thereof ‘uniformed service’; and

          (ii) by striking out ‘Secretary of Defense’ and inserting in lieu thereof ‘Secretary concerned’.

    (b) ADMINISTRATION- Subsection (d) of such section is amended--

      (1) by striking out ‘his jurisdiction and’ and inserting in lieu thereof ‘the jurisdiction of the Secretary,’; and

      (2) by inserting before the period at the end the following: ‘, by the Secretary of Health and Human Services for the Commissioned Corps of the Public Health Service, and by the Secretary of Commerce for the National Oceanic and Atmospheric Administration’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1996, and apply with respect to months beginning on or after such date.

Subtitle C--Travel and Transportation Allowances

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

    (a) ALLOWANCE AUTHORIZED- Section 406(b)(1)(B) of title 37, United States Code, is amended by adding at the end the following: ‘If clause (i)(I) applies to the transportation by the member of a motor vehicle from the old duty station, the monetary allowance under this subparagraph shall also cover return travel to the old duty station by the member or other person transporting the vehicle. In the case of transportation described in clause (ii), the monetary allowance shall also cover travel from the new duty station to the port of debarkation to pick up the vehicle.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on January 1, 1997.

SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

    (a) ALLOWANCE AUTHORIZED- Section 407(a) of title 37, United States Code, is amended in the matter preceding paragraph (1) by striking out ‘two months’ and inserting in lieu thereof ‘two and one-half months’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on January 1, 1997.

SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE BETWEEN CONSECUTIVE OVERSEAS TOURS.

    (a) AUTHORITY FOR ADDITIONAL DEFERRAL OF TRAVEL- Section 411b(a)(2) of title 37, United States Code, is amended by adding at the end the following: ‘If the member is unable to undertake the travel before the end of such one-year period as a result of duty in connection with a contingency operation, the member may defer the travel for one additional year beginning on the date the duty of the member in connection with the contingency operation ends.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect as of November 1, 1995.

SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF PUBLIC HEALTH SERVICE OFFICERS.

    Section 406(j) of title 37, United States Code, is amended--

      (1) in the first sentence of paragraph (1)--

        (A) by striking out ‘Appropriations available’ and all that follows through ‘to a member’ and inserting in lieu thereof ‘The Secretary concerned may pay a monetary allowance to a member of the armed forces or a member of the Commissioned Corps of the Public Health Service’; and

        (B) by striking out ‘of the military department’; and

      (2) by adding at the end the following new paragraph:

    ‘(3) Appropriations available to the Department of Defense for providing transportation of household effects of members of the armed forces under subsection (b) shall be available to pay the monetary allowance authorized under paragraph (1) to such members. Appropriations available to the Department of Health and Human Services for providing transportation of household effects of members of the Commissioned Corps of the Public Health Service under subsection (b) shall be available to pay the monetary allowance authorized under paragraph (1) to such members.’.

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

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

    (a) REPEAL OF ADJUSTMENT OF EFFECTIVE DATE FOR FISCAL YEAR 1998- Section 1401a(b)(2)(B) of title 10, United States Code, is amended--

      (1) by striking out ‘(B) SPECIAL RULES’ and all that follows through ‘In the case of’ in clause

(i) and inserting in lieu thereof ‘(B) SPECIAL RULE FOR FISCAL YEAR 1996- In the case of’; and

      (2) by striking out clause (ii).

    (b) REPEAL OF CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998- Section 631 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 364) is amended by striking out subsection (b).

SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE COLAS AFTER RETIREMENT.

    (a) IN GENERAL- Section 1401a of title 10, United States Code, is amended by striking out subsections (c) and (d) and inserting in lieu thereof the following new subsections:

    ‘(c) FIRST COLA ADJUSTMENT FOR MEMBERS WITH RETIRED PAY COMPUTED USING FINAL BASIC PAY-

      ‘(1) FIRST ADJUSTMENT WITH INTERVENING INCREASE IN BASIC PAY- Notwithstanding subsection (b), if a person described in paragraph (3) becomes entitled to retired pay based on rates of monthly basic pay that became effective after the last day of the calendar quarter of the base index, the retired pay of the member or former member shall be increased on the effective date of the next adjustment of retired pay under subsection (b) only by the percent (adjusted to the nearest one-tenth of 1 percent) by which--

        ‘(A) the price index for the base quarter of that year, exceeds

        ‘(B) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective.

      ‘(2) FIRST ADJUSTMENT WITH NO INTERVENING INCREASE IN BASIC PAY- If a person described in paragraph (3) becomes entitled to retired pay on or after the effective date of an adjustment in retired pay under subsection (b) but before the effective date of the next increase in the rates of monthly basic pay, the retired pay of the member or former member shall be increased, effective on the date the member becomes entitled to that pay, by the percent (adjusted to the nearest one-tenth of 1 percent) by which--

        ‘(A) the base index, exceeds

        ‘(B) the price index for the calendar quarter immediately before the calendar quarter in which the rates of monthly basic pay on which the retired pay is based became effective.

      ‘(3) MEMBERS COVERED- Paragraphs (1) and (2) apply to a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, and whose retired pay base is determined under section 1406 of this title.

    ‘(d) FIRST COLA ADJUSTMENT FOR MEMBERS WITH RETIRED PAY COMPUTED USING HIGH-THREE- Notwithstanding subsection (b), the retired pay of a member or former member of an armed force who first became a member of a uniformed service before August 1, 1986, and whose retired pay base is determined under section 1407 of this title shall be increased on the effective date of the first adjustment of retired pay under subsection (b) after the member or former member becomes entitled to retired pay by the percent (adjusted to the nearest one-tenth of 1 percent) equal to the difference between the percent by which--

      ‘(1) the price index for the base quarter of that year, exceeds

      ‘(2) the price index for the calendar quarter immediately before the calendar quarter during which the member became entitled to retired pay.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply only to adjustments of retired and retainer pay effective after the date of the enactment of this Act.

SEC. 633. SUSPENSION OF PAYMENT OF RETIRED PAY OF MEMBERS WHO ARE ABSENT FROM THE UNITED STATES TO AVOID PROSECUTION.

    (a) DEVELOPMENT OF PROCEDURES FOR SUSPENSION- The Secretary of Defense shall develop uniform procedures under which the Secretary of a military department may suspend the payment of the retired pay of a member or former member of the Armed Forces during periods in which the member willfully remains outside the United States to avoid criminal prosecution or civil liability. The procedures shall address the types of criminal offenses and civil proceedings for which the procedures may be used, including the offenses specified in section 8312 of title 5, United States Code, and the manner by which a member, upon the return of the member to the United States, may obtain retired pay withheld during the member’s absence.

    (b) REPORT TO CONGRESS- The Secretary of Defense shall submit to Congress a report describing the procedures developed under subsection (a). The report shall include recommendations regarding changes to existing provisions of law (including section 8313 of title 5, United States Code) that the Secretary determines are necessary to fully implement the procedures.

    (c) RETIRED PAY DEFINED- For purposes of this section, the term ‘retired pay’ means retired pay, retirement pay, retainer pay, or equivalent pay, payable under a statute to a member or former member of a uniformed service.

    (d) EFFECTIVE DATE- The uniform procedures required by subsection (a) shall be developed not later than 30 days after the date of the enactment of this Act.

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

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

‘SUBCHAPTER II--SURVIVOR BENEFIT PLAN

      ‘Sec.

      ‘1447. Definitions.

      ‘1448. Application of Plan.

      ‘1449. Mental incompetency of member.

      ‘1450. Payment of annuity: beneficiaries.

      ‘1451. Amount of annuity.

      ‘1452. Reduction in retired pay.

      ‘1453. Recovery of amounts erroneously paid.

      ‘1454. Correction of administrative errors.

      ‘1455. Regulations.

‘Sec. 1447. Definitions

    ‘In this subchapter:

      ‘(1) PLAN- The term ‘Plan’ means the Survivor Benefit Plan established by this subchapter.

      ‘(2) STANDARD ANNUITY- The term ‘standard annuity’ means an annuity provided by virtue of eligibility under section 1448(a)(1)(A) of this title.

      ‘(3) RESERVE-COMPONENT ANNUITY- The term ‘reserve-component annuity’ means an annuity provided by virtue of eligibility under section 1448(a)(1)(B) of this title.

      ‘(4) RETIRED PAY- The term ‘retired pay’ includes retainer pay paid under section 6330 of this title.

      ‘(5) RESERVE-COMPONENT RETIRED PAY- The term ‘reserve-component retired pay’ means retired pay under chapter 1223 of this title (or under chapter 67 of this title as in effect before the effective date of the Reserve Officer Personnel Management Act).

      ‘(6) BASE AMOUNT- The term ‘base amount’ means the following:

        ‘(A) FULL AMOUNT UNDER STANDARD ANNUITY- In the case of a person who dies after becoming entitled to retired pay, such term means the amount of monthly retired pay (determined without regard to any reduction under section 1409(b)(2) of this title) to which the person--

          ‘(i) was entitled when he became eligible for that pay; or

          ‘(ii) later became entitled by being advanced on the retired list, performing active duty, or being transferred from the temporary disability retired list to the permanent disability retired list.

        ‘(B) FULL AMOUNT UNDER RESERVE-COMPONENT ANNUITY- In the case of a person who would have become eligible for reserve-component retired pay but for the fact that he died before becoming 60 years of age, such term means the amount of monthly retired pay for which the person would have been eligible--

          ‘(i) if he had been 60 years of age on the date of his death, for purposes of an annuity to become effective on the day after his death in accordance with a designation made under section 1448(e) of this title; or

          ‘(ii) upon becoming 60 years of age (if he had lived to that age), for purposes of an annuity to become effective on the 60th anniversary of his birth in accordance with a designation made under section 1448(e) of this title.

        ‘(C) REDUCED AMOUNT- Such term means any amount less than the amount otherwise applicable under subparagraph (A) or (B) with respect to an annuity provided under the Plan but which is not less than $300 and which is designated by the person (with the concurrence of the person’s spouse, if required under section 1448(a)(3) of this title) providing the annuity on or before--

          ‘(i) the first day for which he becomes eligible for retired pay, in the case of a person providing a standard annuity, or

          ‘(ii) the end of the 90-day period beginning on the date on which he receives the notification required by section 12731(d) of this title that he has completed the years of service required for eligibility for reserve-component retired pay, in the case of a person providing a reserve-component annuity.

      ‘(7) WIDOW- The term ‘widow’ means the surviving wife of a person who, if not married to the person at the time he became eligible for retired pay--

        ‘(A) was married to him for at least one year immediately before his death; or

        ‘(B) is the mother of issue by that marriage.

      ‘(8) WIDOWER- The term ‘widower’ means the surviving husband of a person who, if not married to the person at the time she became eligible for retired pay--

        ‘(A) was married to her for at least one year immediately before her death; or

        ‘(B) is the father of issue by that marriage.

      ‘(9) SURVIVING SPOUSE- The term ‘surviving spouse’ means a widow or widower.

      ‘(10) FORMER SPOUSE- The term ‘former spouse’ means the surviving former husband or wife of a person who is eligible to participate in the Plan.

      ‘(11) DEPENDENT CHILD-

        ‘(A) IN GENERAL- The term ‘dependent child’ means a person who--

          ‘(i) is unmarried;

          ‘(ii) is (I) under 18 years of age, (II) at least 18, but under 22, years of age and pursuing a full-time course of study or training in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution, or (III) incapable of self support because of a mental or physical incapacity existing before the person’s eighteenth birthday or incurred on or after that birthday, but before the person’s twenty-second birthday, while pursuing such a full-time course of study or training; and

          ‘(iii) is the child of a person to whom the Plan applies, including (I) an adopted child, and (II) a stepchild, foster child, or recognized natural child who lived with that person in a regular parent-child relationship.

        ‘(B) SPECIAL RULES FOR COLLEGE STUDENTS- For the purpose of subparagraph (A), a child whose twenty-second birthday occurs before July 1 or after August 31 of a calendar year, and while regularly pursuing such a course of study or training, is considered to have become 22 years of age on the first day of July after that birthday. A child who is a student is considered not to have ceased to be a student during an interim between school years if the interim is not more than 150 days and if the child shows to the satisfaction of the Secretary of Defense that the child has a bona fide intention of continuing to pursue a course of study or training in the same or a different school during the school semester (or other period into which the school year is divided) immediately after the interim.

        ‘(C) FOSTER CHILDREN- A foster child, to qualify under this paragraph as the dependent child of a person to whom the Plan applies, must, at the time of the death of that person, also reside with, and receive over one-half of his support from, that person, and not be cared for under a social agency contract. The temporary absence of a foster child from the residence of that person, while a student as described in this paragraph, shall not be considered to affect the residence of such a foster child.

      ‘(12) COURT- The term ‘court’ has the meaning given that term by section 1408(a)(1) of this title.

      ‘(13) COURT ORDER-

        ‘(A) IN GENERAL- The term ‘court order’ means a court’s final decree of divorce, dissolution, or annulment or a court ordered, ratified, or approved property settlement incident to such a decree (including a final decree modifying the terms of a previously issued decree of divorce, dissolution, annulment, or legal separation, or of a court ordered, ratified, or approved property settlement agreement incident to such previously issued decree).

        ‘(B) FINAL DECREE- The term ‘final decree’ means a decree from which no appeal may be taken or from which no appeal has been taken within the time allowed for the taking of such appeals under the laws applicable to such appeals, or a decree from which timely appeal has been taken and such appeal has been finally decided under the laws applicable to such appeals.

        ‘(C) REGULAR ON ITS FACE- The term ‘regular on its face’, when used in connection with a court order, means a court order that meets the conditions prescribed in section 1408(b)(2) of this title.

‘Sec. 1448. Application of plan

    ‘(a) GENERAL RULES FOR PARTICIPATION IN THE PLAN-

      ‘(1) NAME OF PLAN; ELIGIBLE PARTICIPANTS- The program established by this subchapter shall be known as the Survivor Benefit Plan. The following persons are eligible to participate in the Plan:

        ‘(A) Persons entitled to retired pay.

        ‘(B) Persons who would be eligible for reserve-component retired pay but for the fact that they are under 60 years of age.

      ‘(2) PARTICIPANTS IN THE PLAN- The Plan applies to the following persons, who shall be participants in the Plan:

        ‘(A) STANDARD ANNUITY PARTICIPANTS- A person who is eligible to participate in the Plan under paragraph (1)(A) and who is married or has a dependent child when he becomes entitled to retired pay, unless he elects (with his spouse’s concurrence, if required under paragraph (3)) not to participate in the Plan before the first day for which he is eligible for that pay.

        ‘(B) RESERVE-COMPONENT ANNUITY PARTICIPANTS- A person who (i) is eligible to participate in the Plan under paragraph (1)(B), (ii) is married or has a dependent child when he is notified under section 12731(d) of this title that he has completed the years of service required for eligibility for reserve-component retired pay, and (iii) elects to participate in the Plan (and makes a designation under subsection (e)) before the end of the 90-day period beginning on the date he receives such notification.

      A person described in clauses (i) and (ii) of subparagraph (B) who does not elect to participate in the Plan before the end of the 90-day period referred to in that clause remains eligible, upon reaching 60 years of age and otherwise becoming entitled to retired pay, to participate in the Plan in accordance with eligibility under paragraph (1)(A).

      ‘(3) ELECTIONS-

        ‘(A) SPOUSAL CONSENT FOR CERTAIN ELECTIONS RESPECTING STANDARD ANNUITY- A married person who is eligible to provide a standard annuity may not without the concurrence of the person’s spouse elect--

          ‘(i) not to participate in the Plan;

          ‘(ii) to provide an annuity for the person’s spouse at less than the maximum level; or

          ‘(iii) to provide an annuity for a dependent child but not for the person’s spouse.

        ‘(B) SPOUSAL CONSENT FOR CERTAIN ELECTIONS RESPECTING RESERVE-COMPONENT ANNUITY- A married person who elects to provide a reserve-component annuity may not without the concurrence of the person’s spouse elect--

          ‘(i) to provide an annuity for the person’s spouse at less than the maximum level; or

          ‘(ii) to provide an annuity for a dependent child but not for the person’s spouse.

        ‘(C) EXCEPTION WHEN SPOUSE UNAVAILABLE- A person may make an election described in subparagraph (A) or (B) without the concurrence of the person’s spouse if the person establishes to the satisfaction of the Secretary concerned--

          ‘(i) that the spouse’s whereabouts cannot be determined; or

          ‘(ii) that, due to exceptional circumstances, requiring the person to seek the spouse’s consent would otherwise be inappropriate.

        ‘(D) CONSTRUCTION WITH FORMER SPOUSE ELECTION PROVISIONS- This paragraph does not affect any right or obligation to elect to provide an annuity for a former spouse (or for a former spouse and dependent child) under subsection (b)(2).

        ‘(E) NOTICE TO SPOUSE OF ELECTION TO PROVIDE FORMER SPOUSE ANNUITY- If a married person who is eligible to provide a standard annuity elects to provide an annuity for a former spouse (or for a former spouse and dependent child) under subsection (b)(2), that person’s spouse shall be notified of that election.

      ‘(4) IRREVOCABILITY OF ELECTIONS-

        ‘(A) STANDARD ANNUITY- An election under paragraph (2)(A) not to participate in the Plan is irrevocable if not revoked before the date on which the person first becomes entitled to retired pay.

        ‘(B) RESERVE-COMPONENT ANNUITY- An election under paragraph (2)(B) to participate in the Plan is irrevocable if not revoked before the end of the 90-day period referred to in that paragraph.

      ‘(5) PARTICIPATION BY PERSON MARRYING AFTER RE- TIREMENT, ETC-

        ‘(A) ELECTION TO PARTICIPATE IN PLAN- A person who is not married and has no dependent child upon becoming eligible to participate in the Plan but who later marries or acquires a dependent child may elect to participate in the Plan.

        ‘(B) MANNER AND TIME OF ELECTION- Such an election must be written, signed by the person making the election, and received by the Secretary concerned within one year after the date on which that person marries or acquires that dependent child.

        ‘(C) LIMITATION ON REVOCATION OF ELECTION- Such an election may not be revoked except in accordance with subsection (b)(3).

        ‘(D) EFFECTIVE DATE OF ELECTION- The election is effective as of the first day of the first calendar month following the month in which the election is received by the Secretary concerned.

        ‘(E) DESIGNATION IF RCSBP ELECTION- In the case of a person providing a reserve-component annuity, such an election shall include a designation under subsection (e).

      ‘(6) ELECTION OUT OF PLAN BY PERSON WITH SPOUSE COVERAGE WHO REMARRIES-

        ‘(A) GENERAL RULE- A person--

          ‘(i) who is a participant in the Plan and is providing coverage under the Plan for a spouse (or a spouse and child);

          ‘(ii) who does not have an eligible spouse beneficiary under the Plan; and

          ‘(iii) who remarries,

        may elect not to provide coverage under the Plan for the person’s spouse.

        ‘(B) EFFECT OF ELECTION ON RETIRED PAY- If such an election is made, reductions in the retired pay of that person under section 1452 of this title shall not be made.

        ‘(C) TERMS AND CONDITIONS OF ELECTION- An election under this paragraph--

          ‘(i) is irrevocable;

          ‘(ii) shall be made within one year after the person’s remarriage; and

          ‘(iii) shall be made in such form and manner as may be prescribed in regulations under section 1455 of this title.

        ‘(D) NOTICE TO SPOUSE- If a person makes an election under this paragraph--

          ‘(i) not to participate in the Plan;

          ‘(ii) to provide an annuity for the person’s spouse at less than the maximum level; or

          ‘(iii) to provide an annuity for a dependent child but not for the person’s spouse,

        the person’s spouse shall be notified of that election.

        ‘(E) CONSTRUCTION WITH FORMER SPOUSE ELECTION PROVISIONS- This paragraph does not affect any right or obligation to elect to provide an annuity to a former spouse under subsection (b).

    ‘(b) INSURABLE INTEREST AND FORMER SPOUSE COVERAGE-

      ‘(1) COVERAGE FOR PERSON WITH INSURABLE INTEREST-

        ‘(A) GENERAL RULE- A person who is not married and does not have a dependent child upon becoming eligible to participate in the Plan may elect to provide an annuity under the Plan to a natural person with an insurable interest in that person. In the case of a person providing a reserve-component annuity, such an election shall include a designation under subsection (e).

        ‘(B) TERMINATION OF COVERAGE- An election under subparagraph (A) for a beneficiary who is not the former spouse of the person providing the annuity may be terminated. Any such termination shall be made by a participant by the submission to the Secretary concerned of a request to discontinue participation in the Plan, and such participation in the Plan shall be discontinued effective on the first day of the first month following the month in which the request is received by the Secretary concerned. Effective on

such date, the Secretary concerned shall discontinue the reduction being made in such person’s retired pay on account of participation in the Plan or, in the case of a person who has been required to make deposits in the Treasury on account of participation in the Plan, such person may discontinue making such deposits effective on such date.

        ‘(C) FORM FOR DISCONTINUATION- A request under subparagraph (B) to discontinue participation in the Plan shall be in such form and shall contain such information as may be required under regulations prescribed by the Secretary of Defense.

        ‘(D) WITHDRAWAL OF REQUEST FOR DISCONTINUATION- The Secretary concerned shall furnish promptly to each person who submits a request under subparagraph (B) to discontinue participation in the Plan a written statement of the advantages and disadvantages of participating in the Plan and the possible disadvantages of discontinuing participation. A person may withdraw the request to discontinue participation if withdrawn within 30 days after having been submitted to the Secretary concerned.

        ‘(E) CONSEQUENCES OF DISCONTINUATION- Once participation is discontinued, benefits may not be paid in conjunction with the earlier participation in the Plan and premiums paid may not be refunded. Participation in the Plan may not later be resumed except through a qualified election under paragraph (5) of subsection (a).

      ‘(2) FORMER SPOUSE COVERAGE UPON BECOMING A PARTICIPANT IN THE PLAN-

        ‘(A) GENERAL RULE- A person who has a former spouse upon becoming eligible to participate in the Plan may elect to provide an annuity to that former spouse.

        ‘(B) EFFECT OF FORMER SPOUSE ELECTION ON SPOUSE OR DEPENDENT CHILD- In the case of a person with a spouse or a dependent child, such an election prevents payment of an annuity to that spouse or child (other than a child who is a beneficiary under an election under paragraph (4)), including payment under subsection (d).

        ‘(C) DESIGNATION IF MORE THAN ONE FORMER SPOUSE- If there is more than one former spouse, the person shall designate which former spouse is to be provided the annuity.

        ‘(D) DESIGNATION IF RCSBP ELECTION- In the case of a person providing a reserve-component annuity, such an election shall include a designation under subsection (e).

      ‘(3) FORMER SPOUSE COVERAGE BY PERSONS ALREADY PARTICIPATING IN PLAN-

        ‘(A) ELECTION OF COVERAGE-

          ‘(i) AUTHORITY FOR ELECTION- A person--

            ‘(I) who is a participant in the Plan and is providing coverage for a spouse or a spouse and child (even though there is no beneficiary currently eligible for such coverage), and

            ‘(II) who has a former spouse who was not that person’s former spouse when that person became eligible to participate in the Plan,

          may (subject to subparagraph (B)) elect to provide an annuity to that former spouse.

          ‘(ii) TERMINATION OF PREVIOUS COVERAGE- Any such election terminates any previous coverage under the Plan.

          ‘(iii) MANNER AND TIME OF ELECTION- Any such election must be written, signed by the person making the election, and received by the Secretary concerned within one year after the date of the decree of divorce, dissolution, or annulment.

        ‘(B) LIMITATION ON ELECTION- A person may not make an election under subparagraph (A) to provide an annuity to a former spouse who that person married after becoming eligible for retired pay unless--

          ‘(i) the person was married to that former spouse for at least one year, or

          ‘(ii) that former spouse is the parent of issue by that marriage.

        ‘(C) IRREVOCABILITY, EFFECTIVE DATE, ETC- An election under this paragraph may not be revoked except in accordance with section 1450(f) of this title. Such an election is effective as of the first day of the first calendar month following the month in which it is received by the Secretary concerned. This paragraph does not provide the authority to change a designation previously made under subsection (e).

        ‘(D) NOTICE TO SPOUSE- If a person who is married makes an election to provide an annuity to a former spouse under this paragraph, that person’s spouse shall be notified of the election.

      ‘(4) FORMER SPOUSE AND CHILD COVERAGE- A person who elects to provide an annuity for a former spouse under paragraph (2) or (3) may, at the time of the election, elect to provide coverage under that annuity for both the former spouse and a dependent child, if the child resulted from the person’s marriage to that former spouse.

      ‘(5) DISCLOSURE OF WHETHER ELECTION OF FORMER SPOUSE COVERAGE IS REQUIRED- A person who elects to provide an annuity to a former spouse under paragraph (2) or (3) shall, at the time of making the election, provide the Secretary concerned with a written statement (in a form to be prescribed by that Secretary and signed by such person and the former spouse) setting forth--

        ‘(A) whether the election is being made pursuant to the requirements of a court order; or

        ‘(B) whether the election is being made pursuant to a written agreement previously entered into voluntarily by such person as a part of, or incident to, a proceeding of divorce, dissolution, or annulment and (if so)

whether such voluntary written agreement has been incorporated in, or ratified or approved by, a court order.

    ‘(c) PERSONS ON TEMPORARY DISABILITY RETIRED LIST- The application of the Plan to a person whose name is on the temporary disability retired list terminates when his name is removed from that list and he is no longer entitled to disability retired pay.

    ‘(d) COVERAGE FOR SURVIVORS OF RETIREMENT-ELIGIBLE MEMBERS WHO DIE ON ACTIVE DUTY-

      ‘(1) SURVIVING SPOUSE ANNUITY- The Secretary concerned shall pay an annuity under this subchapter to the surviving spouse of a member who dies on active duty after--

        ‘(A) becoming eligible to receive retired pay;

        ‘(B) qualifying for retired pay except that he has not applied for or been granted that pay; or

        ‘(C) completing 20 years of active service but before he is eligible to retire as a commissioned officer because he has not completed 10 years of active commissioned service.

      ‘(2) DEPENDENT CHILD ANNUITY- The Secretary concerned shall pay an annuity under this subchapter to the dependent child of a member described in paragraph (1) if there is no surviving spouse or if the member’s surviving spouse subsequently dies.

      ‘(3) MANDATORY FORMER SPOUSE ANNUITY- If a member described in paragraph (1) is required under a court order or spousal agreement to provide an annuity to a former spouse upon becoming eligible to be a participant in the Plan or has made an election under subsection (b) to provide an annuity to a former spouse, the Secretary--

        ‘(A) may not pay an annuity under paragraph (1) or (2); but

        ‘(B) shall pay an annuity to that former spouse as if the member had been a participant in the Plan and had made an election under subsection (b) to provide an annuity to the former spouse, or in accordance with that election, as the case may be, if the Secretary receives a written request from the former spouse concerned that the election be deemed to have been made in the same manner as provided in section 1450(f)(3) of this title.

      ‘(4) PRIORITY- An annuity that may be provided under this subsection shall be provided in preference to an annuity that may be provided under any other provision of this subchapter on account of service of the same member.

      ‘(5) COMPUTATION- The amount of an annuity under this subsection is computed under section 1451(c) of this title.

    ‘(e) DESIGNATION FOR COMMENCEMENT OF RESERVE-COMPONENT ANNUITY- In any case in which a person electing to participate in the Plan is required to make a designation under this subsection, the person making such election shall designate whether, in the event he dies before becoming 60 years of age, the annuity provided shall become effective on--

      ‘(1) the day after the date of his death; or

      ‘(2) the 60th anniversary of his birth.

    ‘(f) COVERAGE OF SURVIVORS OF PERSONS DYING WHEN ELIGIBLE TO ELECT RESERVE-COMPONENT ANNUITY-

      ‘(1) SURVIVING SPOUSE ANNUITY- The Secretary concerned shall pay an annuity under this subchapter to the surviving spouse of a person who is eligible to provide a reserve-component annuity and who dies--

        ‘(A) before being notified under section 12731(d) of this title that he has completed the years of service required for eligibility for reserve-component retired pay; or

        ‘(B) during the 90-day period beginning on the date he receives notification under section 12731(d) of this title that he has completed the years of service required for eligibility for reserve-component retired pay if he had not made an election under subsection (a)(2)(B) to participate in the Plan.

      ‘(2) DEPENDENT CHILD ANNUITY- The Secretary concerned shall pay an annuity under this subchapter to the dependent child of a person described in paragraph (1) if there is no surviving spouse or if the person’s surviving spouse subsequently dies.

      ‘(3) MANDATORY FORMER SPOUSE ANNUITY- If a person described in paragraph (1) is required under a court order or spousal agreement to provide an annuity to a former spouse upon becoming eligible to be a participant in the Plan or has made an election under subsection (b) to provide an annuity to a former spouse, the Secretary--

        ‘(A) may not pay an annuity under paragraph (1) or (2); but

        ‘(B) shall pay an annuity to that former spouse as if the person had been a participant in the Plan and had made an election under subsection (b) to provide an annuity to the former spouse, or in accordance with that election, as the case may be, if the Secretary receives a written request from the former spouse concerned that the election be deemed to have been made in the same manner as provided in section 1450(f)(3) of this title.

      ‘(4) COMPUTATION- The amount of an annuity under this subsection is computed under section 1451(c) of this title.

    ‘(g) ELECTION TO INCREASE COVERAGE UPON REMARRIAGE-

      ‘(1) ELECTION- A person--

        ‘(A) who is a participant in the Plan and is providing coverage under subsection (a) for a spouse or a spouse and child, but at less than the maximum level; and

        ‘(B) who remarries,

      may elect, within one year of such remarriage, to increase the level of coverage provided under the Plan to a level not in excess of the current retired pay of that person.

      ‘(2) PAYMENT REQUIRED- Such an election shall be contingent on the person paying to the United States the amount determined under paragraph (3) plus interest on such amount at a rate determined under regulations prescribed by the Secretary of Defense.

      ‘(3) AMOUNT TO BE PAID- The amount referred to in paragraph (2) is the amount equal to the difference between--

        ‘(A) the amount that would have been withheld from such person’s retired pay under section 1452 of this title if the higher level of coverage had been in effect from the time the person became a participant in the Plan; and

        ‘(B) the amount of such person’s retired pay actually withheld.

      ‘(4) MANNER OF MAKING ELECTION- An election under paragraph (1) shall be made in such manner as the Secretary shall prescribe and shall become effective upon receipt of the payment required by paragraph (2).

      ‘(5) DISPOSITION OF PAYMENTS- A payment received under this subsection by the Secretary of Defense shall be deposited into the Department of Defense Military Retirement Fund. Any other payment received under this subsection shall be deposited in the Treasury as miscellaneous receipts.

‘Sec. 1449. Mental incompetency of member

    ‘(a) ELECTION BY SECRETARY CONCERNED ON BEHALF OF MENTALLY INCOMPETENT MEMBER- If a person to whom section 1448 of this title applies is determined to be mentally incompetent by medical officers of the armed force concerned or of the Department of Veterans Affairs, or by a court of competent jurisdiction, an election described in subsection (a)(2) or (b) of section 1448 of this title may be made on behalf of that person by the Secretary concerned.

    ‘(b) REVOCATION OF ELECTION BY MEMBER-

      ‘(1) AUTHORITY UPON SUBSEQUENT DETERMINATION OF MENTAL COMPETENCE- If a person for whom the Secretary has made an election under subsection (a) is later determined to be mentally competent by an authority named in that subsection, that person may, within 180 days after that determination, revoke that election.

      ‘(2) DEDUCTIONS FROM RETIRED PAY NOT TO BE REFUNDED- Any deduction made from retired pay by reason of such an election may not be refunded.

‘Sec. 1450. Payment of annuity: beneficiaries

    ‘(a) IN GENERAL- Effective as of the first day after the death of a person to whom section 1448 of this title applies (or on such other day as that person may provide under subsection (j)), a monthly annuity under section 1451 of this title shall be paid to the person’s beneficiaries under the Plan, as follows:

      ‘(1) SURVIVING SPOUSE OR FORMER SPOUSE- The eligible surviving spouse or the eligible former spouse.

      ‘(2) SURVIVING CHILDREN- The surviving dependent children in equal shares, if the eligible surviving spouse or the eligible former spouse is dead, dies, or otherwise becomes ineligible under this section.

      ‘(3) DEPENDENT CHILDREN- The dependent children in equal shares if the person to whom section 1448 of this title applies (with the concurrence of the person’s spouse, if required under section 1448(a)(3) of this title) elected to provide an annuity for dependent children but not for the spouse or former spouse.

      ‘(4) NATURAL PERSON DESIGNATED UNDER ‘INSURABLE INTEREST’ COVERAGE- The natural person designated under section 1448(b)(1) of this title, unless the election to provide an annuity to the natural person has been changed as provided in subsection (f).

    ‘(b) TERMINATION OF ANNUITY FOR DEATH, REMARRIAGE BEFORE AGE 55, ETC-

      ‘(1) GENERAL RULE- An annuity payable to the beneficiary terminates effective as of the first day of the month in which eligibility is lost.

      ‘(2) TERMINATION OF SPOUSE ANNUITY UPON DEATH OR REMARRIAGE BEFORE AGE 55- An annuity for a surviving spouse or former spouse shall be paid to the surviving spouse or former spouse while the surviving spouse or former spouse is living or, if the surviving spouse or former spouse remarries before reaching age 55, until the surviving spouse or former spouse remarries.

      ‘(3) EFFECT OF TERMINATION OF SUBSEQUENT MARRIAGE BEFORE AGE 55- If the surviving spouse or former spouse remarries before reaching age 55 and that marriage is terminated by death, annulment, or divorce, payment of the annuity shall be resumed effective as of the first day of the month in which the marriage is so terminated. However, if the surviving spouse or former spouse is also entitled to an annuity under the Plan based upon the marriage so terminated, the surviving spouse or former spouse may not receive both annuities but must elect which to receive.

    ‘(c) OFFSET FOR AMOUNT OF DEPENDENCY AND INDEMNITY COMPENSATION-

      ‘(1) REQUIRED OFFSET- If, upon the death of a person to whom section 1448 of this title applies, the surviving spouse or former spouse of that person is also entitled to dependency and indemnity compensation under section 1311(a) of title 38, the surviving spouse or former spouse may be paid an annuity under this section, but only in the amount that the annuity otherwise payable under this section would exceed that compensation.

      ‘(2) EFFECTIVE DATE OF OFFSET- A reduction in an annuity under this section required by paragraph (1) shall be effective on the date of the commencement of the period of payment of such dependency and indemnity compensation under title 38.

    ‘(d) LIMITATION ON PAYMENT OF ANNUITIES WHEN COVERAGE UNDER CIVIL SERVICE RETIREMENT ELECTED- If, upon the death of a person to whom section 1448 of this title applies, that person had in effect a waiver of that person’s retired pay for the purposes of subchapter III of chapter 83 of title 5, an annuity under this section shall not be payable unless, in accordance with section 8339(j) of title 5, that person

notified the Office of Personnel Management that he did not desire any spouse surviving him to receive an annuity under section 8341(b) of that title.

    ‘(e) REFUND OF AMOUNTS DEDUCTED FROM RETIRED PAY WHEN DIC OFFSET IS APPLICABLE-

      ‘(1) FULL REFUND WHEN DIC GREATER THAN SBP ANNUITY- If an annuity under this section is not payable because of subsection (c), any amount deducted from the retired pay of the deceased under section 1452 of this title shall be refunded to the surviving spouse or former spouse.

      ‘(2) PARTIAL REFUND WHEN SBP ANNUITY REDUCED BY DIC- If, because of subsection (c), the annuity payable is less than the amount established under section 1451 of this title, the annuity payable shall be recalculated under that section. The amount of the reduction in the retired pay required to provide that recalculated annuity shall be computed under section 1452 of this title, and the difference between the amount deducted before the computation of that recalculated annuity and the amount that would have been deducted on the basis of that recalculated annuity shall be refunded to the surviving spouse or former spouse.

    ‘(f) CHANGE IN ELECTION OF INSURABLE INTEREST OR FORMER SPOUSE BENEFICIARY-

      ‘(1) AUTHORIZED CHANGES-

        ‘(A) ELECTION IN FAVOR OF SPOUSE OR CHILD- A person who elects to provide an annuity to a person designated by him under section 1448(b) of this title may, subject to paragraph (2), change that election and provide an annuity to his spouse or dependent child.

        ‘(B) NOTICE- The Secretary concerned shall notify the former spouse or other natural person previously designated under section 1448(b) of this title of any change of election under subparagraph (A).

        ‘(C) PROCEDURES, EFFECTIVE DATE, ETC- Any such change of election is subject to the same rules with respect to execution, revocation, and effectiveness as are set forth in section 1448(a)(5) of this title (without regard to the eligibility of the person making the change of election to make such an election under that section).

      ‘(2) LIMITATION ON CHANGE IN BENEFICIARY WHEN FORMER SPOUSE COVERAGE IN EFFECT- A person who, incident to a proceeding of divorce, dissolution, or annulment, is required by a court order to elect under section 1448(b) of this title to provide an annuity to a former spouse (or to both a former spouse and child), or who enters into a written agreement (whether voluntary or required by a court order) to make such an election, and who makes an election pursuant to such order or agreement, may not change that election under paragraph (1) unless, of the following requirements, whichever are applicable in a particular case are satisfied:

        ‘(A) In a case in which the election is required by a court order, or in which an agreement to make the election has been incorporated in or ratified or approved by a court order, the person--

          ‘(i) furnishes to the Secretary concerned a certified copy of a court order which is regular on its face and which modifies the provisions of all previous court orders relating to such election, or the agreement to make such election, so as to permit the person to change the election; and

          ‘(ii) certifies to the Secretary concerned that the court order is valid and in effect.

        ‘(B) In a case of a written agreement that has not been incorporated in or ratified or approved by a court order, the person--

          ‘(i) furnishes to the Secretary concerned a statement, in such form as the Secretary concerned may prescribe, signed by the former spouse and evidencing the former spouse’s agreement to a change in the election under paragraph (1); and

          ‘(ii) certifies to the Secretary concerned that the statement is current and in effect.

      ‘(3) REQUIRED FORMER SPOUSE ELECTION TO BE DEEMED TO HAVE BEEN MADE-

        ‘(A) DEEMED ELECTION UPON REQUEST BY FORMER SPOUSE- If a person described in paragraph (2) or (3) of section 1448(b) of this title is required (as described in subparagraph (B)) to elect under section 1448(b) of this title to provide an annuity to a former spouse and such person then fails or refuses to make such an election, such person shall be deemed to have made such an election if the Secretary concerned receives the following:

          ‘(i) REQUEST FROM FORMER SPOUSE- A written request, in such manner as the Secretary shall prescribe, from the former spouse concerned requesting that such an election be deemed to have been made.

          ‘(ii) COPY OF COURT ORDER OR OTHER OFFICIAL STATEMENT- Either--

            ‘(I) a copy of the court order, regular on its face, which requires such election or incorporates, ratifies, or approves the written agreement of such person; or

            ‘(II) a statement from the clerk of the court (or other appropriate official) that such agreement has been filed with the court in accordance with applicable State law.

        ‘(B) PERSONS REQUIRED TO MAKE ELECTION- A person shall be considered for purposes of subparagraph (A) to be required to elect under section 1448(b) of this title to provide an annuity to a former spouse if--

          ‘(i) the person enters, incident to a proceeding of divorce, dissolution, or annulment, into a written agreement to make such an election and the agreement (I) has been incorporated in or ratified or

approved by a court order, or (II) has been filed with the court of appropriate jurisdiction in accordance with appli-cable State law; or

          ‘(ii) the person is required by a court order to make such an election.

        ‘(C) TIME LIMIT FOR REQUEST BY FORMER SPOUSE- An election may not be deemed to have been made under subparagraph (A) in the case of any person unless the Secretary concerned receives a request from the former spouse of the person within one year of the date of the court order or filing involved.

        ‘(D) EFFECTIVE DATE OF DEEMED ELECTION- An election deemed to have been made under subparagraph (A) shall become effective on the first day of the first month which begins after the date of the court order or filing involved.

      ‘(4) FORMER SPOUSE COVERAGE MAY BE REQUIRED BY COURT ORDER- A court order may require a person to elect (or to enter into an agreement to elect) under section 1448(b) of this title to provide an annuity to a former spouse (or to both a former spouse and child).

    ‘(g) LIMITATION ON CHANGING OR REVOKING ELECTIONS-

      ‘(1) IN GENERAL- An election under this section may not be changed or revoked.

      ‘(2) EXCEPTIONS- Paragraph (1) does not apply to--

        ‘(A) a revocation of an election under section 1449(b) of this title; or

        ‘(B) a change in an election under subsection (f).

    ‘(h) TREATMENT OF ANNUITIES UNDER OTHER LAWS- Except as provided in section 1451 of this title, an annuity under this section is in addition to any other payment to which a person is entitled under any other provision of law. Such annuity shall be considered as income under laws administered by the Secretary of Veterans Affairs.

    ‘(i) ANNUITIES EXEMPT FROM CERTAIN LEGAL PROCESS- Except as provided in subsection (l)(3)(B), an annuity under this section is not assignable or subject to execution, levy, attachment, garnishment, or other legal process.

    ‘(j) EFFECTIVE DATE OF RESERVE-COMPONENT ANNUITIES-

      ‘(1) PERSONS MAKING SECTION 1448(e) DESIGNATION- An annuity elected by a person providing a reserve-component annuity shall be effective in accordance with the designation made by such person under section 1448(e) of this title.

      ‘(2) PERSONS DYING BEFORE MAKING SECTION 1448(e) DESIGNATION- An annuity payable under section 1448(f) of this title shall be effective on the day after the date of the death of the person upon whose service the right to the annuity is based.

    ‘(k) ADJUSTMENT OF SPOUSE OR FORMER SPOUSE ANNUITY UPON LOSS OF DEPENDENCY AND INDEMNITY COMPENSATION-

      ‘(1) READJUSTMENT IF BENEFICIARY 55 YEARS OF AGE OR MORE- If a surviving spouse or former spouse whose annuity has been adjusted under subsection (c) subsequently loses entitlement to dependency and indemnity compensation under section 1311(a) of title 38 because of the remarriage of the surviving spouse, or former spouse, and if at the time of such remarriage the surviving spouse or former spouse is 55 years of age or more, the amount of the annuity of the surviving spouse or former spouse shall be readjusted, effective on the effective date of such loss of dependency and indemnity compensation, to the amount of the annuity which would be in effect with respect to the surviving spouse or former spouse if the adjustment under subsection (c) had never been made.

      ‘(2) REPAYMENT OF AMOUNTS PREVIOUSLY REFUNDED-

        ‘(A) GENERAL RULE- A surviving spouse or former spouse whose annuity is readjusted under paragraph (1) shall repay any amount refunded under subsection (e) by reason of the adjustment under subsection (c).

        ‘(B) INTEREST REQUIRED IF REPAYMENT NOT A LUMP SUM- If the repayment is not made in a lump sum, the surviving spouse or former spouse shall pay interest on the amount to be repaid. Such interest shall commence on the date on which the first such payment is due and shall be applied over the period during which any part of the repayment remains to be paid.

        ‘(C) MANNER OF REPAYMENT; RATE OF INTEREST- The manner in which such repayment shall be made, and the rate of any such interest, shall be prescribed in regulations under section 1455 of this title.

        ‘(D) DEPOSIT OF AMOUNTS REPAID- An amount repaid under this paragraph (including any such interest) received by the Secretary of Defense shall be deposited into the Department of Defense Military Retirement Fund. Any other amount repaid under this paragraph shall be deposited into the Treasury as miscellaneous receipts.

    ‘(l) PARTICIPANTS IN THE PLAN WHO ARE MISSING-

      ‘(1) AUTHORITY TO PRESUME DEATH OF MISSING PARTICIPANT-

        ‘(A) IN GENERAL- Upon application of the beneficiary of a participant in the Plan who is missing, the Secretary concerned may determine for purposes of this subchapter that the participant is presumed dead.

        ‘(B) PARTICIPANT WHO IS MISSING- A participant in the Plan is considered to be missing for purposes of this subsection if--

          ‘(i) the retired pay of the participant has been suspended on the basis that the participant is missing; or

          ‘(ii) in the case of a participant in the Plan who would be eligible for reserve-component retired pay but for the fact that he is under 60 years of

age, his retired pay, if he were entitled to retired pay, would be suspended on the basis that he is missing.

        ‘(C) REQUIREMENTS APPLICABLE TO PRESUMPTION OF DEATH- Any such determination shall be made in accordance with regulations prescribed under section 1455 of this title. The Secretary concerned may not make a determination for purposes of this subchapter that a participant who is missing is presumed dead unless the Secretary finds that--

          ‘(i) the participant has been missing for at least 30 days; and

          ‘(ii) the circumstances under which the participant is missing would lead a reasonably prudent person to conclude that the participant is dead.

      ‘(2) COMMENCEMENT OF ANNUITY- Upon a determination under paragraph (1) with respect to a participant in the Plan, an annuity otherwise payable under this subchapter shall be paid as if the participant died on the date as of which the retired pay of the participant was suspended.

      ‘(3) EFFECT OF PERSON NOT BEING DEAD-

        ‘(A) TERMINATION OF ANNUITY- If, after a determination under paragraph (1), the Secretary concerned determines that the participant is alive--

          ‘(i) any annuity being paid under this subchapter by reason of this subsection shall be terminated; and

          ‘(ii) the total amount of any annuity payments made by reason of this subsection shall constitute a debt to the United States.

        ‘(B) COLLECTION FROM PARTICIPANT OF ANNUITY AMOUNTS ERRONEOUSLY PAID- A debt under subparagraph (A)(ii) may be collected or offset--

          ‘(i) from any retired pay otherwise payable to the participant;

          ‘(ii) if the participant is entitled to compensation under chapter 11 of title 38, from that compen- sation; or

          ‘(iii) if the participant is entitled to any other payment from the United States, from that payment.

        ‘(C) COLLECTION FROM BENEFICIARY- If the participant dies before the full recovery of the amount of annuity payments described in subparagraph (A)(ii) has been made by the United States, the remaining amount of such annuity payments may be collected from the participant’s beneficiary under the Plan if that beneficiary was the recipient of the annuity payments made by reason of this subsection.

‘Sec. 1451. Amount of annuity

    ‘(a) COMPUTATION OF ANNUITY FOR A SPOUSE, FORMER SPOUSE, OR CHILD-

      ‘(1) STANDARD ANNUITY- In the case of a standard annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)), the monthly annuity payable to the beneficiary shall be determined as follows:

        ‘(A) BENEFICIARY UNDER 62 YEARS OF AGE- If the beneficiary is under 62 years of age or is a dependent child when becoming entitled to the annuity, the monthly annuity shall be the amount equal to 55 percent of the base amount.

        ‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER-

          ‘(i) GENERAL RULE- If the beneficiary (other than a dependent child) is 62 years of age or older when becoming entitled to the annuity, the monthly annuity shall be the amount equal to 35 percent of the base amount.

          ‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL SECURITY OFFSET COMPUTATION- If the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary than computation under clause (i), the annuity shall be computed under that subsection rather than under clause (i).

      ‘(2) RESERVE-COMPONENT ANNUITY--In the case of a reserve-component annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)), the monthly annuity payable to the beneficiary shall be determined as follows:

        ‘(A) BENEFICIARY UNDER 62 YEARS OF AGE- If the beneficiary is under 62 years of age or is a dependent child when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base amount that--

          ‘(i) is less than 55 percent; and

          ‘(ii) is determined under subsection (f).

        ‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER-

          ‘(i) GENERAL RULE- If the beneficiary (other than a dependent child) is 62 years of age or older when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base amount that--

            ‘(I) is less than 35 percent; and

            ‘(II) is determined under subsection (f).

          ‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL SECURITY OFFSET COMPUTATION- If the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary than computation under clause (i), the annuity shall be computed under that subsection rather than under clause (i).

    ‘(b) INSURABLE INTEREST BENEFICIARY-

      ‘(1) STANDARD ANNUITY- In the case of a standard annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to 55 percent of the retired pay of the person who elected to provide the annuity after the reduction in that pay in accordance with section 1452(c) of this title.

      ‘(2) RESERVE-COMPONENT ANNUITY- In the case of a reserve-component annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to a percentage of the retired pay of the person who elected to provide the annuity after the reduction in such pay in accordance with section 1452(c) of this title that--

        ‘(A) is less than 55 percent; and

        ‘(B) is determined under subsection (f).

      ‘(3) COMPUTATION OF RESERVE-COMPONENT ANNUITY WHEN PARTICIPANT DIES BEFORE AGE 60- For the purposes of paragraph (2), a person--

        ‘(A) who provides an annuity that is determined in accordance with that paragraph;

        ‘(B) who dies before becoming 60 years of age; and

        ‘(C) who at the time of death is otherwise entitled to retired pay,

      shall be considered to have been entitled to retired pay at the time of death. The retired pay of such person for the purposes of such paragraph shall be computed on the basis of the rates of basic pay in effect on the date on which the annuity provided by such person is to become effective in accordance with the designation of such person under section 1448(e) of this title.

    ‘(c) ANNUITIES FOR SURVIVORS OF CERTAIN PERSONS DYING DURING A PERIOD OF SPECIAL ELIGIBILITY FOR SBP-

      ‘(1) IN GENERAL- In the case of an annuity provided under section 1448(d) or 1448(f) of this title, the amount of the annuity shall be determined as follows:

        ‘(A) BENEFICIARY UNDER 62 YEARS OF AGE- If the person receiving the annuity is under 62 years of age or is a dependent child when the member or former member dies, the monthly annuity shall be the amount equal to 55 percent of the retired pay to which the member or former member would have been entitled if the member or former member had been entitled to that pay based upon his years of active service when he died.

        ‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER-

          ‘(i) GENERAL RULE- If the person receiving the annuity (other than a dependent child) is 62 years of age or older when the member or former member dies, the monthly annuity shall be the amount equal to 35 percent of the retired pay to which the member or former member would have been entitled if the member or former member had been entitled to that pay based upon his years of active service when he died.

          ‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL SECURITY OFFSET COMPUTATION- If the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary than computation under clause (i), the annuity shall be computed under that subsection rather than under clause (i).

      ‘(2) DIC OFFSET- An annuity computed under paragraph (1) that is paid to a surviving spouse shall be reduced by the amount of dependency and indemnity compensation to which the surviving spouse is entitled under section 1311(a) of title 38. Any such reduction shall be effective on the date of the commencement of the period of payment of such compensation under title 38.

      ‘(3) SERVICEMEMBERS NOT YET GRANTED RETIRED PAY- In the case of an annuity provided by reason of the service of a member described in section 1448(d)(1)(B) or 1448(d)(1)(C) of this title who first became a member of a uniformed service before September 8, 1980, the retired pay to which the member would have been entitled when he died shall be determined for purposes of paragraph (1) based upon the rate of basic pay in effect at the time of death for the grade in which the member was serving at the time of death, unless (as determined by the Secretary concerned) the member would have been entitled to be retired in a higher grade.

      ‘(4) RATE OF PAY TO BE USED IN COMPUTING ANNUITY- In the case of an annuity paid under section 1448(f) of this title by reason of the service of a person who first became a member of a uniformed service before September 8, 1980, the retired pay of the person providing the annuity shall for the purposes of paragraph (1) be computed on the basis of the rates of basic pay in effect on the effective date of the annuity.

    ‘(d) REDUCTION OF ANNUITIES AT AGE 62-

      ‘(1) REDUCTION REQUIRED- The annuity of a person whose annuity is computed under subparagraph (A) of subsection (a)(1), (a)(2), or (c)(1) shall be reduced on the first day of the month after the month in which the person becomes 62 years of age.

      ‘(2) AMOUNT OF ANNUITY AS REDUCED-

        ‘(A) 35 PERCENT ANNUITY- Except as provided in subparagraph (B), the reduced amount of the annuity shall be the amount of the annuity that the person would be receiving on that date if the annuity had initially been computed under subparagraph (B) of that subsection.

        ‘(B) Savings provision for beneficiaries eligible for social security offset

COMPUTATION- In the case of a person eligible to have an annuity computed under subsection (e) and for whom, at the time the person becomes 62 years of age, the annuity computed with a reduction under subsection (e)(3) is more favorable than the annuity with a reduction described in subparagraph (A), the reduction in the annuity shall be computed in the same manner as a reduction under subsection (e)(3).

    ‘(e) SAVINGS PROVISION FOR CERTAIN BENEFICIARIES-

      ‘(1) PERSONS COVERED- The following beneficiaries under the Plan are eligible to have an annuity under the Plan computed under this subsection:

        ‘(A) A beneficiary receiving an annuity under the Plan on October 1, 1985, as the surviving spouse or former spouse of the person providing the annuity.

        ‘(B) A spouse or former spouse beneficiary of a person who on October 1, 1985--

          ‘(i) was a participant in the Plan;

          ‘(ii) was entitled to retired pay or was qualified for that pay except that he had not applied for and been granted that pay; or

          ‘(iii) would have been eligible for reserve-component retired pay but for the fact that he was under 60 years of age.

      ‘(2) AMOUNT OF ANNUITY- Subject to paragraph (3), an annuity computed under this subsection is determined as follows:

        ‘(A) STANDARD ANNUITY- In the case of the beneficiary of a standard annuity, the annuity shall be the amount equal to 55 percent of the base amount.

        ‘(B) RESERVE-COMPONENT ANNUITY- In the case of the beneficiary of a reserve-component annuity, the annuity shall be the percentage of the base amount that--

          ‘(i) is less than 55 percent; and

          ‘(ii) is determined under subsection (f).

        ‘(C) BENEFICIARIES OF PERSONS DYING DURING A PERIOD OF SPECIAL ELIGIBILITY FOR SBP- In the case of the beneficiary of an annuity under section 1448(d) or 1448(f) of this title, the annuity shall be the amount equal to 55 percent of the retired pay of the person providing the annuity (as that pay is determined under subsection (c)).

      ‘(3) SOCIAL SECURITY OFFSET- An annuity computed under this subsection shall be reduced by the lesser of the following:

        ‘(A) SOCIAL SECURITY COMPUTATION- The amount of the survivor benefit, if any, to which the surviving spouse (or the former spouse, in the case of a former spouse beneficiary who became a former spouse under a divorce that became final after November 29, 1989) would be entitled under title II of the Social Security Act (42 U.S.C. 401 et seq.) based solely upon service by the person concerned as described in section 210(l)(1) of such Act (42 U.S.C. 410(l)(1)) and calculated assuming that the person concerned lives to age 65.

        ‘(B) MAXIMUM AMOUNT OF REDUCTION- 40 percent of the amount of the monthly annuity as determined under paragraph (2).

      ‘(4) SPECIAL RULES FOR SOCIAL SECURITY OFFSET COMPUTATION-

        ‘(A) TREATMENT OF DEDUCTIONS MADE ON ACCOUNT OF WORK- For the purpose of paragraph (3), a surviving spouse (or a former spouse, in the case of a person who becomes a former spouse under a divorce that becomes final after November 29, 1989) shall not be considered as entitled to a benefit under title II of the Social Security Act (42 U.S.C. 401 et seq.) to the extent that such benefit has been offset by deductions under section 203 of such Act (42 U.S.C. 403) on account of work.

        ‘(B) TREATMENT OF CERTAIN PERIODS FOR WHICH SOCIAL SECURITY REFUNDS ARE MADE- In the computation of any reduction made under paragraph (3), there shall be excluded any period of service described in section 210(l)(1) of the Social Security Act (42 U.S.C. 410(l)(1))--

          ‘(i) which was performed after December 1, 1980; and

          ‘(ii) which involved periods of service of less than 30 continuous days for which the person concerned is entitled to receive a refund under section 6413(c) of the Internal Revenue Code of 1986 of the social security tax which the person had paid.

    ‘(f) DETERMINATION OF PERCENTAGES APPLICABLE TO COMPUTATION OF RESERVE-COMPONENT ANNUITIES- The percentage to be applied in determining the amount of an annuity computed under subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under regulations prescribed by the Secretary of Defense. Such regulations shall be prescribed taking into consideration the following:

      ‘(1) The age of the person electing to provide the annuity at the time of such election.

      ‘(2) The difference in age between such person and the beneficiary of the annuity.

      ‘(3) Whether such person provided for the annuity to become effective (in the event he died before becoming 60 years of age) on the day after his death or on the 60th anniversary of his birth.

      ‘(4) Appropriate group annuity tables.

      ‘(5) Such other factors as the Secretary considers relevant.

    ‘(g) ADJUSTMENTS TO ANNUITIES-

      ‘(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING-

        ‘(A) INCREASES IN ANNUITIES WHEN RETIRED PAY INCREASED- Whenever retired pay is increased under section 1401a of this title (or any other provision

of law), each annuity that is payable under the Plan shall be increased at the same time.

        ‘(B) PERCENTAGE OF INCREASE- The increase shall, in the case of any annuity, be by the same percent as the percent by which the retired pay of the person providing the annuity would have been increased at such time if the person were alive (and otherwise entitled to such pay).

        ‘(C) CERTAIN REDUCTIONS TO BE DISREGARDED- The amount of the increase shall be based on the monthly annuity payable before any reduction under section 1450(c) of this title or under subsection (c)(2).

      ‘(2) ROUNDING DOWN- The monthly amount of an annuity payable under this subchapter, if not a multiple of $1, shall be rounded to the next lower multiple of $1.

    ‘(h) ADJUSTMENTS TO BASE AMOUNT-

      ‘(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING-

        ‘(A) INCREASES IN BASE AMOUNT WHEN RETIRED PAY INCREASED- Whenever retired pay is increased under section 1401a of this title (or any other provision of law), the base amount applicable to each participant in the Plan shall be increased at the same time.

        ‘(B) PERCENTAGE OF INCREASE- The increase shall be by the same percent as the percent by which the retired pay of the participant is so increased.

      ‘(2) RECOMPUTATION AT AGE 62- When the retired pay of a person who first became a member of a uniformed service on or after August 1, 1986, and who is a participant in the Plan is recomputed under section 1410 of this title upon the person’s becoming 62 years of age, the base amount applicable to that person shall be recomputed (effective on the effective date of the recomputation of such retired pay under section 1410 of this title) so as to be the amount equal to the amount of the base amount that would be in effect on that date if increases in such base amount under paragraph (1) had been computed as provided in paragraph (2) of section 1401a(b) of this title (rather than under paragraph (3) of that section).

      ‘(3) DISREGARDING OF RETIRED PAY REDUCTIONS FOR RETIREMENT BEFORE 30 YEARS OF SERVICE- Computation of a member’s retired pay for purposes of this section shall be made without regard to any reduction under section 1409(b)(2) of this title.

    ‘(i) RECOMPUTATION OF ANNUITY FOR CERTAIN BENEFICIARIES- In the case of an annuity under the Plan which is computed on the basis of the retired pay of a person who would have been entitled to have that retired pay recomputed under section 1410 of this title upon attaining 62 years of age, but who dies before attaining that age, the annuity shall be recomputed, effective on the first day of the first month beginning after the date on which the member or former member would have attained 62 years of age, so as to be the amount equal to the amount of the annuity that would be in effect on that date if increases under subsection (h)(1) in the base amount applicable to that annuity to the time of the death of the member or former member, and increases in such annuity under subsection (g)(1), had been computed as provided in paragraph (2) of section 1401a(b) of this title (rather than under paragraph (3) of that section).

‘Sec. 1452. Reduction in retired pay

    ‘(a) SPOUSE AND FORMER SPOUSE ANNUITIES-

      ‘(1) REQUIRED REDUCTION IN RETIRED PAY- Except as provided in subsection (b), the retired pay of a participant in the Plan who is providing spouse coverage (as described in paragraph (5)) shall be reduced as follows:

        ‘(A) STANDARD ANNUITY- If the annuity coverage being providing is a standard annuity, the reduction shall be as follows:

          ‘(i) DISABILITY AND NONREGULAR SERVICE RE- TIREES- In the case of a person who is entitled to retired pay under chapter 61 or chapter 1223 of this title, the reduction shall be in whichever of the alternative reduction amounts is more favorable to that person.

          ‘(ii) MEMBERS AS OF ENACTMENT OF FLAT-RATE REDUCTION- In the case of a person who first became a member of a uniformed service before March 1, 1990, the reduction shall be in whichever of the alternative reduction amounts is more favorable to that person.

          ‘(iii) NEW ENTRANTS AFTER ENACTMENT OF FLAT-RATE REDUCTION- In the case of a person who first becomes a member of a uniformed service on or after March 1, 1990, and who is entitled to retired pay under a provision of law other than chapter 61 or chapter 1223 of this title, the reduction shall be in an amount equal to 6 1/2 percent of the base amount.

          ‘(iv) ALTERNATIVE REDUCTION AMOUNTS- For purposes of clauses (i) and (ii), the alternative reduction amounts are the following:

            ‘(I) FLAT-RATE REDUCTION- An amount equal to 6 1/2 percent of the base amount.

            ‘(II) AMOUNT UNDER PRE-FLAT-RATE REDUCTION- An amount equal to 2 1/2 percent of the first $337 (as adjusted after November 1, 1989, under paragraph (4)) of the base amount plus 10 percent of the remainder of the base amount.

        ‘(B) RESERVE-COMPONENT ANNUITY- If the annuity coverage being provided is a reserve-component annuity, the reduction shall be in whichever of the following amounts is more favorable to that person:

          ‘(i) FLAT-RATE REDUCTION- An amount equal to 6 1/2 percent of the base amount plus an amount determined in accordance with regulations prescribed by the Secretary of Defense as a premium for the additional coverage provided through

reserve-component annuity coverage under the Plan.

          ‘(ii) AMOUNT UNDER PRE-FLAT-RATE REDUCTION- An amount equal to 2 1/2 percent of the first $337 (as adjusted after November 1, 1989, under paragraph (4)) of the base amount plus 10 percent of the remainder of the base amount plus an amount determined in accordance with regulations prescribed by the Secretary of Defense as a premium for the additional coverage provided through reserve-component annuity coverage under the Plan.

      ‘(2) ADDITIONAL REDUCTION FOR CHILD COVERAGE- If there is a dependent child as well as a spouse or former spouse, the amount prescribed under paragraph (1) shall be increased by an amount prescribed under regulations of the Secretary of Defense.

      ‘(3) NO REDUCTION WHEN NO BENEFICIARY- The reduction in retired pay prescribed by paragraph (1) shall not be applicable during any month in which there is no eligible spouse or former spouse beneficiary.

      ‘(4) PERIODIC ADJUSTMENTS-

        ‘(A) ADJUSTMENTS FOR INCREASES IN RATES OF BASIC PAY- Whenever there is an increase in the rates of basic pay of members of the uniformed services effective on or after October 1, 1985, the amounts under paragraph (1) with respect to which the percentage factor of 2 1/2 is applied shall be increased by the overall percentage of such increase in the rates of basic pay. The increase under the preceding sentence shall apply only with respect to persons whose retired pay is computed based on the rates of basic pay in effect on or after the date of such increase in rates of basic pay.

        ‘(B) ADJUSTMENTS FOR RETIRED PAY COLAS- In addition to the increase under subparagraph (A), the amounts under paragraph (1) with respect to which the percentage factor of 2 1/2 is applied shall be further increased at the same time and by the same percentage as an increase in retired pay under section 1401a of this title effective on or after October 1, 1985. Such increase under the preceding sentence shall apply only with respect to a person who initially participates in the Plan on a date which is after both the effective date of such increase under section 1401a and the effective date of the rates of basic pay upon which that person’s retired pay is computed.

      ‘(5) SPOUSE COVERAGE DESCRIBED- For the purposes of paragraph (1), a participant in the Plan who is providing spouse coverage is a participant who--

        ‘(A) has (i) a spouse or former spouse, or (ii) a spouse or former spouse and a dependent child; and

        ‘(B) has not elected to provide an annuity to a person designated by him under section 1448(b)(1) of this title or, having made such an election, has changed his election in favor of his spouse under section 1450(f) of this title.

    ‘(b) CHILD-ONLY ANNUITIES-

      ‘(1) REQUIRED REDUCTION IN RETIRED PAY- The retired pay of a participant in the Plan who is providing child-only coverage (as described in paragraph (4)) shall be reduced by an amount prescribed under regulations by the Secretary of Defense.

      ‘(2) NO REDUCTION WHEN NO CHILD- There shall be no reduction in retired pay under paragraph (1) for any month during which the participant has no eligible dependent child.

      ‘(3) SPECIAL RULE FOR CERTAIN RCSBP PARTICIPANTS- In the case of a participant in the Plan who is participating in the Plan under an election under section 1448(a)(2)(B) of this title and who provided child-only coverage during a period before the participant becomes entitled to receive retired pay, the retired pay of the participant shall be reduced by an amount prescribed under regulations by the Secretary of Defense to reflect the coverage provided under the Plan during the period before the participant became entitled to receive retired pay. A reduction under this paragraph is in addition to any reduction under paragraph (1) and is made without regard to whether there is an eligible dependent child during a month for which the reduction is made.

      ‘(4) CHILD-ONLY COVERAGE DEFINED- For the purposes of this subsection, a participant in the Plan who is providing child-only coverage is a participant who has a dependent child and who--

        ‘(A) does not have an eligible spouse or former spouse; or

        ‘(B) has a spouse or former spouse but has elected to provide an annuity for dependent children only.

    ‘(c) REDUCTION FOR INSURABLE INTEREST COVERAGE-

      ‘(1) REQUIRED REDUCTION IN RETIRED PAY- The retired pay of a person who has elected to provide an annuity to a person designated by him under section 1450(a)(4) of this title shall be reduced as follows:

        ‘(A) STANDARD ANNUITY- In the case of a person providing a standard annuity, the reduction shall be by 10 percent plus 5 percent for each full five years the individual designated is younger than that person.

        ‘(B) RESERVE COMPONENT ANNUITY- In the case of a person providing a reserve-component annuity, the reduction shall be by an amount prescribed under regulations of the Secretary of Defense.

      ‘(2) LIMITATION ON TOTAL REDUCTION- The total reduction under paragraph (1) may not exceed 40 percent.

      ‘(3) DURATION OF REDUCTION- The reduction in retired pay prescribed by this subsection shall continue during the lifetime of the person designated under section 1450(a)(4) of this title or until the person receiving retired pay changes his election under section 1450(f) of this title.

      ‘(4) RULE FOR COMPUTATION- Computation of a member’s retired pay for purposes of this subsection shall

be made without regard to any reduction under section 1409(b)(2) of this title.

    ‘(d) DEPOSITS TO COVER PERIODS WHEN RETIRED PAY NOT PAID-

      ‘(1) REQUIRED DEPOSITS- If a person who has elected to participate in the Plan has been awarded retired pay and is not entitled to that pay for any period, that person must deposit in the Treasury the amount that would otherwise have been deducted from his pay for that period.

      ‘(2) DEPOSITS NOT REQUIRED WHEN PARTICIPANT ON ACTIVE DUTY- Paragraph (1) does not apply to a person with respect to any period when that person is on active duty under a call or order to active duty for a period of more than 30 days.

    ‘(e) DEPOSITS NOT REQUIRED FOR CERTAIN PARTICIPANTS IN CSRS- When a person who has elected to participate in the Plan waives that person’s retired pay for the purposes of subchapter III of chapter 83 of title 5, that person shall not be required to make the deposit otherwise required by subsection (d) as long as that waiver is in effect unless, in accordance with section 8339(i) of title 5, that person has notified the Office of Personnel Management that he does not desire a spouse surviving him to receive an annuity under section 8331(b) of title 5.

    ‘(f) REFUNDS OF DEDUCTIONS NOT ALLOWED-

      ‘(1) GENERAL RULE- A person is not entitled to refund of any amount deducted from retired pay under this section.

      ‘(2) EXCEPTIONS- Paragraph (1) does not apply--

        ‘(A) in the case of a refund authorized by section 1450(e) of this title; or

        ‘(B) in case of a deduction made through administrative error.

    ‘(g) DISCONTINUATION OF PARTICIPATION BY PARTICIPANTS WHOSE SURVIVING SPOUSES WILL BE ENTITLED TO DIC-

      ‘(1) DISCONTINUATION-

        ‘(A) CONDITIONS- Notwithstanding any other provision of this subchapter but subject to paragraphs (2) and (3), a person who has elected to participate in the Plan and who is suffering from a service-connected disability rated by the Secretary of Veterans Affairs as totally disabling and has suffered from such disability while so rated for a continuous period of 10 or more years (or, if so rated for a lesser period, has suffered from such disability while so rated for a continuous period of not less than 5 years from the date of such person’s last discharge or release from active duty) may discontinue participation in the Plan by submitting to the Secretary concerned a request to discontinue participation in the Plan.

        ‘(B) EFFECTIVE DATE- Participation in the Plan of a person who submits a request under subparagraph (A) shall be discontinued effective on the first day of the first month following the month in which the request under subparagraph (A) is received by the Secretary concerned. Effective on such date, the Secretary concerned shall discontinue the reduction being made in such person’s retired pay on account of participation in the Plan or, in the case of a person who has been required to make deposits in the Treasury on account of participation in the Plan, such person may discontinue making such deposits effective on such date.

        ‘(C) FORM FOR REQUEST FOR DISCONTINUATION- Any request under this paragraph to discontinue participation in the Plan shall be in such form and shall contain such information as the Secretary concerned may require by regulation.

      ‘(2) CONSENT OF BENEFICIARIES REQUIRED- A person described in paragraph (1) may not discontinue participation in the Plan under such paragraph without the written consent of the beneficiary or beneficiaries of such person under the Plan.

      ‘(3) INFORMATION ON PLAN TO BE PROVIDED BY SECRETARY CONCERNED-

        ‘(A) INFORMATION TO BE PROVIDED PROMPTLY TO PARTICIPANT- The Secretary concerned shall furnish promptly to each person who files a request under paragraph (1) to discontinue participation in the Plan a written statement of the advantages of participating in the Plan and the possible disadvantages of discontinuing participation.

        ‘(B) RIGHT TO WITHDRAW DISCONTINUATION REQUEST- A person may withdraw a request made under paragraph (1) if it is withdrawn within 30 days after having been submitted to the Secretary concerned.

      ‘(4) REFUND OF DEDUCTIONS FROM RETIRED PAY- Upon the death of a person described in paragraph (1) who discontinued participation in the Plan in accordance with this subsection, any amount deducted from the retired pay of that person under this section shall be refunded to the person’s surviving spouse.

      ‘(5) RESUMPTION OF PARTICIPATION IN PLAN-

        ‘(A) CONDITIONS FOR RESUMPTION- A person described in paragraph (1) who discontinued participation in the Plan may elect to participate again in the Plan if--

          ‘(i) after having discontinued participation in the Plan the Secretary of Veterans Affairs reduces that person’s service-connected disability rating to a rating of less than total; and

          ‘(ii) that person applies to the Secretary concerned, within such period of time after the reduction in such person’s service-connected disability rating has been made as the Secretary concerned may prescribe, to again participate in the Plan and includes in such application such information as the Secretary concerned may require.

        ‘(B) EFFECTIVE DATE OF RESUMED COVERAGE- Such person’s participation in the Plan under

this paragraph is effective beginning on the first day of the month after the month in which the Secretary concerned receives the application for resumption of participation in the Plan.

        ‘(C) RESUMPTION OF CONTRIBUTIONS- When a person elects to participate in the Plan under this paragraph, the Secretary concerned shall begin making reductions in that person’s retired pay, or require such person to make deposits in the Treasury under subsection (d), as appropriate, effective on the effective date of such participation under subparagraph (B).

    ‘(h) INCREASES IN REDUCTION WITH INCREASES IN RETIRED PAY-

      ‘(1) GENERAL RULE- Whenever retired pay is increased under section 1401a of this title (or any other provision of law), the amount of the reduction to be made under subsection (a) or (b) in the retired pay of any person shall be increased at the same time and by the same percentage as such retired pay is so increased.

    ‘(i) RECOMPUTATION OF REDUCTION UPON RECOMPUTATION OF RETIRED PAY- When the retired pay of a person who first became a member of a uniformed service on or after August 1, 1986, and who is a participant in the Plan is recomputed under section 1410 of this title upon the person’s becoming 62 years of age, the amount of the reduction in such retired pay under this section shall be recomputed (effective on the effective date of the recomputation of such retired pay under section 1410 of this title) so as to be the amount equal to the amount of such reduction that would be in effect on that date if increases in such retired pay under section 1401a(b) of this title, and increases in reductions in such retired pay under subsection (h), had been computed as provided in paragraph (2) of section 1401a(b) of this title (rather than under paragraph (3) of that section).

‘Sec. 1453. Recovery of amounts erroneously paid

    ‘(a) RECOVERY- In addition to any other method of recovery provided by law, the Secretary concerned may authorize the recovery of any amount erroneously paid to a person under this subchapter by deduction from later payments to that person.

    ‘(b) AUTHORITY TO WAIVE RECOVERY- Recovery of an amount erroneously paid to a person under this subchapter is not required if, in the judgment of the Secretary concerned and the Comptroller General--

      ‘(1) there has been no fault by the person to whom the amount was erroneously paid; and

      ‘(2) recovery of such amount would be contrary to the purposes of this subchapter or against equity and good conscience.

‘Sec. 1454. Correction of administrative errors

    ‘(a) AUTHORITY- The Secretary concerned may, under regulations prescribed under section 1455 of this title, correct or revoke any election under this subchapter when the Secretary considers it necessary to correct an administrative error.

    ‘(b) FINALITY- Except when procured by fraud, a correction or revocation under this section is final and conclusive on all officers of the United States.

‘Sec. 1455. Regulations

    ‘(a) IN GENERAL- The President shall prescribe regulations to carry out this subchapter. Those regulations shall, so far as practicable, be uniform for the uniformed services.

    ‘(b) NOTICE OF ELECTIONS- Regulations prescribed under this section shall provide that before the date on which a member becomes entitled to retired pay--

      ‘(1) if the member is married, the member and the member’s spouse shall be informed of the elections available under section 1448(a) of this title and the effects of such elections; and

      ‘(2) if the notification referred to in section 1448(a)(3)(E) of this title is required, any former spouse of the member shall be informed of the elections available and the effects of such elections.

    ‘(c) PROCEDURE FOR DEPOSITING CERTAIN RECEIPTS- Regulations prescribed under this section shall establish procedures for depositing the amounts referred to in sections 1448(g), 1450(k)(2), and 1452(d) of this title.

    ‘(d) PAYMENTS TO GUARDIANS AND FIDUCIARIES-

      ‘(1) IN GENERAL- Regulations prescribed under this section shall provide procedures for the payment of an annuity under this subchapter in the case of--

        ‘(A) a person for whom a guardian or other fiduciary has been appointed; and

        ‘(B) a minor, mentally incompetent, or otherwise legally disabled person for whom a guardian or other fiduciary has not been appointed.

      ‘(2) AUTHORIZED PROCEDURES- The regulations under paragraph (1) may include provisions for the following:

        ‘(A) In the case of an annuitant referred to in paragraph (1)(A), payment of the annuity to the appointed guardian or other fiduciary.

        ‘(B) In the case of an annuitant referred to in paragraph (1)(B), payment of the annuity to any person who, in the judgment of the Secretary concerned, is responsible for the care of the annuitant.

        ‘(C) Subject to subparagraphs (D) and (E), a requirement for the payee of an annuity to spend or invest the amounts paid on behalf of the annuitant solely for benefit of the annuitant.

        ‘(D) Authority for the Secretary concerned to permit the payee to withhold from the annuity payment such amount, not in excess of 4 percent of the annuity, as the Secretary concerned considers a reasonable fee for the fiduciary services of the payee when a court appointment order provides for payment of such a fee to the payee for such services or the Secretary concerned determines that payment of a fee to such payee is necessary in order to obtain the fiduciary services of the payee.

        ‘(E) Authority for the Secretary concerned to require the payee to provide a surety bond in an amount

sufficient to protect the interests of the annuitant and to pay for such bond out of the annuity.

        ‘(F) A requirement for the payee of an annuity to maintain and, upon request, to provide to the Secretary concerned an accounting of expenditures and investments of amounts paid to the payee.

        ‘(G) In the case of an annuitant referred to in paragraph (1)(B)--

          ‘(i) procedures for determining incompetency and for selecting a payee to represent the annuitant for the purposes of this section, including provisions for notifying the annuitant of the actions being taken to make such a determination and to select a representative payee, an opportunity for the annuitant to review the evidence being considered, and an opportunity for the annuitant to submit additional evidence before the determination is made; and

          ‘(ii) standards for determining incompetency, including standards for determining the sufficiency of medical evidence and other evidence.

        ‘(H) Provisions for any other matter that the President considers appropriate in connection with the payment of an annuity in the case of a person referred to in paragraph (1).

      ‘(3) LEGAL EFFECT OF PAYMENT TO GUARDIAN OR FIDUCIARY- An annuity paid to a person on behalf of an annuitant in accordance with the regulations prescribed pursuant to paragraph (1) discharges the obligation of the United States for payment to the annuitant of the amount of the annuity so paid.’.

SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS TO BE EFFECTIVE CONCURRENTLY WITH PAYMENT OF RETIRED PAY COST-OF-LIVING INCREASES.

    (a) SURVIVOR BENEFIT PLAN- Section 1452(h) of title 10, United States Code, as amended by section 634, is amended by adding at the end the following new paragraph:

      ‘(2) COORDINATION WHEN PAYMENT OF INCREASE IN RETIRED PAY IS DELAYED BY LAW-

        ‘(A) IN GENERAL- Notwithstanding paragraph (1), when the initial payment of an increase in retired pay under section 1401a of this title (or any other provision of law) to a person is for a month that begins later than the effective date of that increase by reason of the application of subsection (b)(2)(B) of such section (or section 631(b) of Public Law 104-106 (110 Stat. 364)), then the amount of the reduction in the person’s retired pay shall be effective on the date of that initial payment of the increase in retired pay rather than the effective date of the increase in retired pay.

        ‘(B) DELAY NOT TO AFFECT COMPUTATION OF ANNUITY- Subparagraph (A) may not be construed as delaying, for purposes of determining the amount of a monthly annuity under section 1451 of this title, the effective date of an increase in a base amount under subsection (h) of such section from the effective date of an increase in retired pay under section 1401a of this title to the date on which the initial payment of that increase in retired pay is made in accordance with subsection (b)(2)(B) of such section.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with respect to retired pay payable for months beginning on or after the date of the enactment of this Act.

SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER SPOUSES’ PROTECTION ACT.

    (a) MANNER OF SERVICE OF PROCESS- Subsection (b)(1)(A) of section 1408 of title 10, United States Code, is amended by striking out ‘certified or registered mail, return receipt requested’ and inserting in lieu thereof ‘facsimile or electronic transmission or by mail’.

    (b) SUBSEQUENT COURT ORDER FROM ANOTHER STATE- Subsection (d) of such section is amended by adding at the end the following new paragraph:

    ‘(6)(A) The Secretary concerned may not accept service of a court order that is an out-of State modification, or comply with the provisions of such a court order, unless the court issuing that order has jurisdiction in the manner specified in subsection (c)(4) over both the member and the spouse or former spouse involved.

    ‘(B) A court order shall be considered to be an out-of-State modification for purposes of this paragraph if the order--

      ‘(i) modifies a previous court order under this section upon which payments under this subsection are based; and

      ‘(ii) is issued by a court of a State other than the State of the court that issued the previous court order.’.

SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) CIVIL SERVICE RETIREMENT AND DISABILITY SYSTEM- (1) Subsection (c) of section 8332 of title 5, United States Code, is amended by adding at the end the following new paragraph:

    ‘(4) If, after January 1, 1997, an employee or Member waives retired pay that is subject to a court order for which there has been effective service on the Secretary concerned for purposes of section 1408 of title 10, the military service on which the retired pay is based may be credited as service for purposes of this subchapter only if the employee or Member authorizes the Director to deduct and withhold from the annuity

payable to the employee or Member under this subchapter an amount equal to the amount that, if the annuity payment was instead a payment of the employee’s or Member’s retired pay, would have been deducted and withheld and paid to the former spouse covered by the court order under such section 1408. The amount deducted and withheld under this paragraph shall be paid to that former spouse. The period of civil service employment by the employee or Member shall not be taken into consideration in determining the amount of the deductions and withholding or the amount of the payment to the former spouse. The Director of the Office of Personnel Management shall prescribe regulations to carry out this paragraph.’.

    (2) Paragraph (1) of such subsection is amended by striking out ‘Except as provided in paragraph (2)’ and inserting in lieu thereof ‘Except as provided in paragraphs (2) and (4)’.

    (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM- (1) Subsection (c) of section 8411 of title 5, United States Code, is amended by adding at the end the following new paragraph:

    ‘(5) If, after January 1, 1997, an employee or Member waives retired pay that is subject to a court order for which there has been effective service on the Secretary concerned for purposes of section 1408 of title 10, the military service on which the retired pay is based may be credited as service for purposes of this chapter only if the employee or Member authorizes the Director to deduct and withhold from the annuity payable to the employee or Member under this subchapter an amount equal to the amount that, if the annuity payment was instead a payment of the employee’s or Member’s retired pay, would have been deducted and withheld and paid to the former spouse covered by the court order under such section 1408. The amount deducted and withheld under this paragraph shall be paid to that former spouse. The period of civil service employment by the employee or Member shall not be taken into consideration in determining the amount of the deductions and withholding or the amount of the payment to the former spouse. The Director of the Office of Personnel Management shall prescribe regulations to carry out this paragraph.’.

    (2) Paragraph (1) of such subsection is amended by striking ‘Except as provided in paragraph (2) or (3)’ and inserting ‘Except as provided in paragraphs (2), (3), and (5)’.

    (c) EFFECTIVE DATE- The amendments made by subsections (a) and (b) shall take effect on January 1, 1997.

SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME WIDOWS.

    (a) ADJUSTED ANNUAL INCOME LIMITATION APPLIABLE TO ELIGIBILITY FOR INCOME SUPPLEMENT- (1) Section 4 of Public Law 92-425 (10 U.S.C. 1448 note) is amended--

      (A) in subsection (a)(3), by striking out ‘$2,340’ and inserting in lieu thereof ‘the maximum annual rate of pension in effect under section 1541(b) of title 38, United States Code’; and

      (B) in the first sentence of subsection (b), by striking out ‘$2,340 a year’ and inserting in lieu thereof ‘the maximum annual rate of pension in effect under section 1541(b) of title 38, United States Code’.

    (2) Subsection (c) of such section is repealed.

    (b) PAYMENTS TO BE MADE BY SECRETARY OF VETERANS AFFAIRS- Such section is further amended by adding at the end the following new subsection:

    ‘(e)(1) Payment of annuities under this section shall be made by the Secretary of Veterans Affairs. If appropriate for administrative convenience (or otherwise determined appropriate by the Secretary of Veterans Affairs), that Secretary may combine a payment to any person for any month under this section with any other payment for that month under laws administered by the Secretary so as to provide that person with a single payment for that month.

    ‘(2) The Secretary concerned shall annually transfer to the Secretary of Veterans Affairs such amounts as may be necessary for payments by the Secretary of Veterans Affairs under this section and for costs of the Secretary of Veterans Affairs in administering this section. Such transfers shall be made from amounts that would otherwise be used for payment of annuities by the Secretary concerned under this section. The authority to make such a transfer is in addition to any other authority of the Secretary concerned to transfer funds for a purpose other than the purpose for which the funds were originally made available. In the case of a transfer by the Secretary of a military department, the provisions of section 2215 of title 10, United States Code, do not apply.

    ‘(3) The Secretary concerned shall promptly notify the Secretary of Veterans Affairs of any change in beneficiaries under this section.’.

    (c) CLARIFICATION OF CONTINUING ELIGIBLITY FOR DEPARTMENT OF VETERANS AFFAIRS PENSION- Such section, as amended by subsection (a)(2), is further amended by inserting after subsection (b) the following new subsection (c):

    ‘(c) The amount of an annuity payable under this section, although counted as income in determining the amount of any pension described in subsection (a)(2) of this section, shall not be considered to affect the eligiblity of the recipient of such annuity for such pension, even though, as a result of including the amount of the annuity as income, no amount of such pension is due.’.

    (d) EFFECTIVE DATE- The amendments made by this section take effect on July 1, 1997, and apply with respect to payments of benefits for any month after June 1997.

Subtitle E--Other Matters

SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED OR RETAINER PAY.

    (a) ALLOTMENTS AUTHORIZED- Section 701 of title 37, United States Code, is amended by striking out subsection (d) and inserting in lieu thereof the following new subsections:

    ‘(d) Under regulations prescribed by the Secretary of Defense, a member of the Army, Navy, Air Force, or Marine Corps and a contract surgeon of the Army, Navy, or Air Force may make allotments from the pay of the member or surgeon for the purpose of supporting relatives or for any other purpose that the Secretary considers proper. Such allotments may include a maximum of six allotments considered to be discretionary under such regulations. For a member or former member entitled to retired or retainer pay, a maximum of six discretionary allotments authorized during active military service may be continued into retired status, and new discretionary allotments may be authorized so long as the total number of discretionary allotments does not exceed six.

    ‘(e) If an allotment made under subsection (d) is paid to the allottee before the disbursing officer receives a notice of discontinuance from the officer required by regulation to furnish the notice, the amount of the allotment shall be credited to the disbursing officer. If an allotment is erroneously paid because the officer required by regulation to so report failed to report the death of the allotter or any other fact that makes the allotment not payable, the amount of the payment not recovered from the allottee shall, if practicable, be collected by the Secretary concerned from the officer who failed to make the report.’.

    (b) ISSUANCE OF REGULATIONS- The Secretaries of the military departments shall prescribe regulations under subsection (d) of section 701 of title 37, United States Code, as added by subsection (a), not later than October 1, 1997.

SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN ADOPTIONS THROUGH PRIVATE PLACEMENTS.

    (a) DEPARTMENT OF DEFENSE- Section 1052(g) of title 10, United States Code, is amended--

      (1) in paragraph (1), by striking out ‘State or local government’ and all that follows through the period at the end of the first sentence and inserting in lieu thereof ‘qualified adoption agency.’; and

      (2) by adding at the end the following new paragraph:

      ‘(3) The term ‘qualified adoption agency’ means any of the following:

        ‘(A) A State or local government agency which has responsibility under State or local law for child placement through adoption.

        ‘(B) A nonprofit, voluntary adoption agency which is authorized by State or local law to place children for adoption.

        ‘(C) Any other source authorized by a State to provide adoption placement if the adoption is supervised by a court under State or local law.’.

    (b) COAST GUARD- Section 514(g) of title 14, United States Code, is amended--

      (1) in paragraph (1), by striking out ‘State or local government’ and all that follows through the period at the end of the first sentence and inserting in lieu thereof ‘qualified adoption agency.’; and

      (2) by adding at the end the following new paragraph:

      ‘(3) The term ‘qualified adoption agency’ means any of the following:

        ‘(A) A State or local government agency which has responsibility under State or local law for child placement through adoption.

        ‘(B) A nonprofit, voluntary adoption agency which is authorized by State or local law to place children for adoption.

        ‘(C) Any other source authorized by a State to provide adoption placement if the adoption is supervised by a court under State or local law.’.

SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX PURPOSES FROM CERTAIN SEPARATION PAY.

    (a) IN GENERAL- Section 1174(h)(2) of title 10, United States Code, is amended by inserting before the period at the end of the first sentence the following: ‘, less the amount of Federal income tax withheld from such pay (such withholding being at the flat withholding rate for Federal income tax withholding, as in effect pursuant to regulations prescribed under chapter 24 of the Internal Revenue Code of 1986)’.

    (b) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1996, and shall apply to payments of separation pay, severance pay, or readjustment pay that are made after September 30, 1996.

SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FURNISHING CLOTHING OR ALLOWANCES FOR ENLISTED NATIONAL GUARD TECHNICIANS.

    Section 418(c) of title 37, United States Code, is amended by striking out ‘for which a uniform allowance is paid under section 415 or 416 of this title’ and inserting in lieu thereof ‘for which clothing is furnished or a uniform allowance is paid under this section’.

SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF BACKPAY TO CERTAIN PERSONS.

    Section 634 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 366) is amended--

      (1) in subsection (b)(1), by striking out ‘Island of Bataan’ and inserting in lieu thereof ‘peninsula of Bataan or island of Corregidor’; and

      (2) in subsection (c), by inserting after the first sentence the following: ‘For the purposes of this subsection, the Secretary of War shall be deemed to have determined

that conditions in the Philippines during the specified period justified payment under applicable regulations of quarters and subsistence allowances at the maximum special rate for duty where emergency conditions existed.’.

SEC. 656. COMPENSATION FOR PERSONS AWARDED PRISONER OF WAR MEDAL WHO DID NOT PREVIOUSLY RECEIVE COMPENSATION AS A PRISONER OF WAR.

    (a) AUTHORITY TO MAKE PAYMENTS- The Secretary of the military department concerned shall make payments in the manner provided in section 6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) to (or on behalf of) any person described in subsection (b) who submits an application for such payment in accordance with subsection (d).

    (b) ELIGIBLE PERSONS- This section applies with respect to a member or former member of the Armed Forces who--

      (1) has received the prisoner of war medal under section 1128 of title 10, United States Code; and

      (2) has not previously received a payment under section 6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) with respect to the period of internment for which the person received the prisoner of war medal.

    (c) AMOUNT OF PAYMENT- The amount of the payment to any person under this section shall be determined based upon the provisions of section 6 of the War Claims Act of 1948 that are applicable with respect to the period of time during which the internment occurred for which the person received the prisoner of war medal.

    (d) ONE-YEAR PERIOD FOR SUBMISSION OF APPLICATIONS- A payment may be made by reason of this section only in the case of a person who submits an application to the Secretary concerned for such payment during the one-year period beginning on the date of the enactment of this Act. Any such application shall be submitted in such form and manner as the Secretary may require.

SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND INTERNED BY NORTH VIETNAM.

    (a) PAYMENT AUTHORIZED TO ELIGIBLE PERSONS- (1) Using amounts made available under subsection (g), the Secretary of Defense shall make a payment under this section to a person who demonstrates to the satisfaction of the Secretary of Defense that the person was captured and incarcerated by the Democratic Republic of Vietnam as a result of the participation by the person in operations conducted under OPLAN 34A or its predecessor.

    (2) Using amounts made available under subsection (g), the Secretary of Defense shall also make a payment under this section to a person who demonstrates to the satisfaction of the Secretary of Defense that the person--

      (A) served as a Vietnamese operative pursuant to OPLAN 35;

      (B) was captured and incarcerated by North Vietnamese forces as a result of the participation by the person in operations in Laos or along the Lao-Vietnamese border pursuant to OPLAN 35;

      (C) remained in captivity after 1973 (or died in captivity); and

      (D) has not previously received payment from the United States for the period spent in captivity.

    (3) A payment may not be made under this section to, or with respect to, a person who the Secretary of Defense determines, based on the available evidence, served in the Peoples Army of Vietnam or provided active assistance to the Government of the Democratic Republic of Vietnam during the period from 1958 through 1975.

    (b) EFFECT OF DEATH OF ELIGIBLE PERSON- In the case of a decedent who would have been eligible for a payment under this section if alive, the documentation required under subsection (a) may be provided by survivors of the decedent, and the payment under this section shall be made to survivors of the decedent in the following order:

      (1) To the surviving spouse.

      (2) If there is no surviving spouse, to the surviving children (including natural children and adopted children) of the decedent, in equal shares.

    (c) AMOUNT PAYABLE- The amount payable to, or with respect to, a person under this section is $40,000. If a person can demonstrate to the Secretary of Defense that confinement or incarceration exceeded 20 years, the Secretary may pay an additional $2,000 for each full year in excess of 20 (and a proportionate amount for a partial year), but the total amount paid to, or with respect to, a person under this section may not exceed $50,000.

    (d) TIME LIMITATIONS- (1) To be eligible for a payment under this section, a claimant must file a claim for such payment with the Secretary of Defense within 18 months of the effective date of the regulations implementing this section.

    (2) Not later than 18 months after receiving a claim for payment under this section, the Secretary shall determine the eligibility of the claimant for payment of the claim. Subject to subsection (f), if the Secretary determines that the claimant is eligible for the payment, the Secretary shall promptly pay the claim.

    (e) REGULATIONS- (1) The Secretary of Defense shall prescribe regulations to carry out this section. Such regulations shall include procedures by which persons may submit claims for payment under this section. Such regulations shall be prescribed not later than six months after the date of the enactment of this Act.

    (2) The Secretary of Defense may establish guidelines regarding what constitutes adequate documentation for determining whether a person satisfies the requirements specified in subsection (a) regarding eligibility for a payment under this section. Such guidelines shall be established in consultation with the heads of other agencies of the Government involved with OPLAN 34A or its predecessor or OPLAN 35.

    (f) LIMITATION ON DISBURSEMENT- (1) The actual disbursement of a payment under this section may be made only

to the person who is eligible for the payment under subsection (a) or (b) and only--

      (A) upon the appearance of that person, in person, at any designated disbursement office in the United States or its territories; or

      (B) at such other location or in such other manner as that person may request in writing.

    (2) In the case of a claim approved for payment but not disbursed as a result of operation of paragraph (1), the Secretary of Defense shall hold the funds in trust for the person in an interest bearing account until such time as the person makes an election under such paragraph.

    (g) FUNDING- To the extent provided in advance for this section in appropriations Acts, of amounts authorized to be appropriated under section 301(24) for this purpose, $20,000,000 shall be available until expended for payments under this section.

    (h) PAYMENT IN FULL SATISFACTION OF CLAIMS AGAINST THE UNITED STATES- The acceptance of payment by, or with respect to, a person under this section shall be in full satisfaction of all claims by or on behalf of that individual against the United States arising from operations under OPLAN 34A or its predecessor or OPLAN 35.

    (i) ATTORNEY FEES- Notwithstanding any contract, the representative of a person may not receive, for services rendered in connection with the claim of, or with respect to, a person under this section, more than 10 percent of a payment made under this section on that claim.

    (j) NO RIGHT TO JUDICIAL REVIEW- All determinations by the Secretary of Defense pursuant to this section are final and conclusive, notwithstanding any other provision of law. Claimants under this section have no right to judicial review, and such review is specifically precluded.

    (k) REPORTS TO CONGRESS- (1) Not later than 24 months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the payment of claims under this section.

    (2) After the submission of the report under paragraph (1), the Secretary shall periodically submit to Congress a report on the status of payment of claims under this section.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

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

Sec. 702. Implementation of requirement for Selected Reserve dental insurance plan.

Sec. 703. Dental insurance plan for military retirees and unremarried surviving spouses and certain other dependents of military retirees.

Sec. 704. Plan for health care coverage for children with medical conditions caused by parental exposure to chemical munitions while serving as members of the Armed Forces.

Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.

Sec. 712. Improved information exchange between military treatment facilities and TRICARE program contractors.

Sec. 713. Plans for medicare subvention demonstration programs.

Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.

Sec. 722. Inclusion of designated providers in uniformed services health care delivery system.

Sec. 723. Provision of uniform benefit by designated providers.

Sec. 724. Enrollment of covered beneficiaries.

Sec. 725. Application of CHAMPUS payment rules.

Sec. 726. Payments for services.

Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically necessary treatment in connection with certain clinical trials.

Sec. 732. Exception to maximum allowable payments to individual health-care providers under CHAMPUS.

Sec. 733. Codification of annual authority to credit CHAMPUS refunds to current year appropriation.

Sec. 734. Exceptions to requirements regarding obtaining nonavailability-of-health-care statements.

Sec. 735. Enhancement of third-party collection and secondary payer authorities under CHAMPUS.

Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed Forces Health Professions Scholarship and Financial Assistance program and Uniformed Services University of the Health Sciences.

Sec. 742. External peer review for defense health program extramural medical research involving human subjects.

Sec. 743. Independent research regarding Gulf War syndrome.

Sec. 744. Comptroller General review of health care activities of Department of Defense relating to Gulf War illnesses.

Sec. 745. Report regarding specialized treatment facility program.

Sec. 746. Study of means of ensuring uniformity in provision of medical and dental care for members of reserve components.

Sec. 747. Sense of Congress regarding tax treatment of Armed Forces Health Professions Scholarship and Financial Assistance program.

Subtitle A--Health Care Services

SEC. 701. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND PROSTATE CANCER.

    (a) MEMBERS AND FORMER MEMBERS- (1) Section 1074d of title 10, United States Code, is amended--

      (A) in subsection (a)--

        (i) by inserting ‘(1)’ before ‘Female’; and

        (ii) by adding at the end the following new paragraph:

    ‘(2) Male members and former members of the uniformed services entitled to medical care under section 1074 or 1074a of this title shall also be entitled to preventive health care screening for colon or prostate cancer at such intervals and using such screening methods as the administering Secretaries consider appropriate.’; and

      (B) in subsection (b), by adding at the end the following new paragraph:

      ‘(8) Colon cancer screening, at the intervals and using the screening methods prescribed under subsection (a)(2).’.

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

‘Sec. 1074d. Certain primary and preventive health care services

    (B) The item relating to such section in the table of sections at the beginning of chapter 55 of such title is amended to read as follows:

      ‘1074d. Certain primary and preventive health care services.’.

    (b) DEPENDENTS- (1) Section 1077(a) of such title is amended by adding at the end the following new paragraph:

      ‘(14) Preventive health care screening for colon or prostate cancer, at the intervals and using the screening methods prescribed under section 1074d(a)(2) of this title.’.

    (2) Section 1079(a)(2) of such title is amended--

      (A) in the matter preceding subparagraph (A), by inserting ‘the schedule and method of colon and prostate cancer screenings,’ after ‘pap smears and mammograms,’; and

      (B) in subparagraph (B), by inserting ‘or colon and prostate cancer screenings’ after ‘pap smears and mammograms’.

SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE DENTAL INSURANCE PLAN.

    (a) IMPLEMENTATION BY CONTRACT- Subsection (a) of section 1076b of title 10, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(a) AUTHORITY TO ESTABLISH PLAN- ’;

      (2) by designating the third sentence as paragraph (3); and

      (3) by inserting after paragraph (1), as designated by paragraph (1) of this subsection, the following new paragraph:

    ‘(2) The Secretary shall provide benefits under the plan through one or more contracts awarded after full and open competition.’.

    (b) COLLECTION OF PREMIUMS OF MEMBERS NOT RECEIVING BASIC PAY- Subsection (b)(3) of such section is amended by adding at the end the following: ‘In the case of a member who does not receive basic pay, the Secretary of Defense shall establish procedures for the collection of the member’s share of the premium for coverage.’.

    (c) SCHEDULE FOR IMPLEMENTATION- Section 705(b) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 373; 10 U.S.C. 1076b note) is amended--

      (1) in the first sentence, by striking out ‘October 1, 1996’ and inserting in lieu thereof ‘October 1, 1997’; and

      (2) by striking out ‘fiscal year 1996’ both places it appears and inserting in lieu thereof ‘fiscal years 1996 and 1997’.

SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND UNREMARRIED SURVIVING SPOUSES AND CERTAIN OTHER DEPENDENTS OF MILITARY RETIREES.

    (a) ESTABLISHMENT OF DENTAL PLAN- (1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1076b the following new section:

‘Sec. 1076c. Dental insurance plan: certain retirees and their surviving spouses and other dependents

    ‘(a) REQUIREMENT FOR PLAN- The Secretary of Defense shall establish a dental insurance plan for military retirees, certain unremarried surviving spouses, and dependents in accordance with this section.

    ‘(b) PERSONS ELIGIBLE FOR PLAN- The following persons are eligible to enroll in the dental insurance plan established under subsection (a):

      ‘(1) Members of the Armed Forces who are entitled to retired pay.

      ‘(2) Members of the Retired Reserve who would be entitled to retired pay under chapter 1223 of this title but for being under 60 years of age.

      ‘(3) Eligible dependents of a member described in paragraph (1) or (2) who are covered by the enrollment of the member in the plan.

      ‘(4) The unremarried surviving spouse and eligible child dependents of a deceased member--

        ‘(A) who dies while in a status described in paragraph (1) or (2); or

        ‘(B) who is described in section 1448(d)(1) of this title.

    ‘(c) PREMIUMS- (1) A member enrolled in the dental insurance plan established under subsection (a) shall pay the premiums charged for the insurance coverage.

    ‘(2) The amount of the premiums payable by a member entitled to retired pay shall be deducted and withheld from the retired pay and shall be disbursed to pay the premiums. The regulations prescribed under subsection (h) shall specify the procedures for payment of the premiums by other enrolled members and by enrolled surviving spouses.

    ‘(d) BENEFITS AVAILABLE UNDER THE PLAN- The dental insurance plan established under subsection (a) shall provide benefits for basic dental care and treatment, including diagnostic services, preventative services, basic restorative services (including endodontics), surgical services, and emergency services.

    ‘(e) COVERAGE- (1) The Secretary shall prescribe a minimum required period for enrollment by a member or surviving spouse in the dental insurance plan established under subsection (a).

    ‘(2) The dental insurance plan shall provide for voluntary enrollment of participants and shall authorize a member or eligible unremarried surviving spouse to enroll for self only or for self and eligible dependents.

    ‘(f) TERMINATION OF ENROLLMENT- The Secretary shall terminate the enrollment of any enrollee, and any eligible dependents of the enrollee covered by the enrollment, in the dental insurance plan established under subsection (a) upon the occurrence of the following:

      ‘(1) In the case of an enrollment under subsection (b)(1), termination of the member’s entitlement to retired pay.

      ‘(2) In the case of an enrollment under subsection (b)(2), termination of the member’s status as a member of the Retired Reserve.

      ‘(3) In the case of an enrollment under subsection (b)(4), remarriage of the surviving spouse.

    ‘(g) CONTINUATION OF DEPENDENTS’ ENROLLMENT UPON DEATH OF ENROLLEE- Coverage of a dependent in the dental insurance plan established under subsection (a) under an enrollment of a member or a surviving spouse who dies during the period of enrollment shall continue until the end of that period and may be renewed by (or for) the dependent, so long as the premium paid is sufficient to cover continuation of the dependent’s enrollment. The Secretary may terminate coverage of the dependent when the premiums paid are no longer sufficient to cover continuation of the enrollment. The Secretary shall prescribe in regulations under subsection (h) the parties responsible for paying the remaining premiums due on the enrollment and the manner for collection of the premiums.

    ‘(h) REGULATIONS- The dental insurance plan established under subsection (a) shall be administered under regulations prescribed by the Secretary of Defense, in consultation with the Secretary of Transportation.

    ‘(i) DEFINITIONS- In this section:

      ‘(1) The term ‘eligible dependent’ means a dependent described in subparagraph (A), (D), or (I) of section 1072(2) of this title.

      ‘(2) The term ‘eligible child dependent’ means a dependent described in subparagraph (D) or (I) of section 1072(2) of this title.

      ‘(3) The term ‘retired pay’ includes retainer pay.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1076b the following new item:

      ‘1076c. Dental insurance plan: certain retirees and their surviving spouses and other dependents.’.

    (b) IMPLEMENTATION- Beginning not later than October 1, 1997, the Secretary of Defense shall--

      (1) offer members of the Armed Forces and other persons described in subsection (b) of section 1076c of title 10, United States Code (as added by subsection (a)(1) of this section), the opportunity to enroll in the dental insurance plan required under that section; and

      (2) begin to provide benefits under the plan.

SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH MEDICAL CONDITIONS CAUSED BY PARENTAL EXPOSURE TO CHEMICAL MUNITIONS WHILE SERVING AS MEMBERS OF THE ARMED FORCES.

    (a) PLAN REQUIRED- The Secretary of Defense, in coordination with the Secretary of Veterans Affairs, shall develop a plan for ensuring the provision of medical care to any natural child of a member of the Armed Forces (including former members and members discharged or otherwise separated from active duty) who has a congenital defect or catastrophic illness, proven to a reasonable degree of scientific certainty on the basis of scientific research to have resulted from exposure of the member to a chemical warfare agent or other hazardous material to which the member was exposed during active military service.

    (b) SUBMISSION TO CONGRESS- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit the plan developed under subsection (a) to Congress.

    (c) DEFINITIONS OF CONGENITAL DEFECT AND CATASTROPHIC ILLNESS- The Secretary of Defense shall prescribe in regulations a definition of the terms ‘congenital defect’ and ‘catastrophic illness’ for the purposes of this section.

Subtitle B--TRICARE Program

SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME ENROLLEES.

    Section 1079(h)(4) of title 10, United States Code, is amended in the second sentence by striking out ‘emergency’.

SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY TREATMENT FACILITIES AND TRICARE PROGRAM CONTRACTORS.

    (a) UNIFORM INTERFACES- The Secretary of Defense shall ensure that the automated medical information system being developed by the Department of Defense (known as the Composite Health Care System) provides for uniform interfaces between information systems of military treatment facilities and private contractors under managed care programs of the TRICARE program. The uniform interface shall provide for a full electronic two-way exchange of health care information between the military treatment facilities and contractor information systems, including enrollment information, information regarding eligibility determinations, provider network information, appointment information, and information regarding the existence of third-party payers.

    (b) AMENDMENT OF EXISTING CONTRACTS- To assure a single consistent source of information throughout the health care delivery system of the uniformed services, the Secretary of Defense shall amend each TRICARE program contract, with the consent of the TRICARE program contractor and notwithstanding any requirement for competition, to require the contractor--

      (1) to use software furnished under the Composite Health Care System to record military treatment facility provider appointments; and

      (2) to record TRICARE program enrollment through direct use of the Composite Health Care System software or through the uniform two-way interface between the contractor and military treatment facilities systems, where applicable.

    (c) DEFINITION OF TRICARE PROGRAM- For purposes of this section, the term ‘TRICARE program’ means the managed health care program that is established by the Secretary of Defense under the authority of chapter 55 of title 10, United States Code, principally section 1097 of such title, and includes the competitive selection of contractors to financially underwrite the delivery of health care services under the Civilian Health and Medical Program of the Uniformed Services.

SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION PROGRAMS.

    (a) PROGRAM FOR ENROLLMENT IN TRICARE MANAGED CARE OPTION- Not later than September 6, 1996, the Secretary of Defense and the Secretary of Health and Human Services shall jointly submit to Congress and the President a report containing a specific plan (including the recommendations of the Secretaries required under subsection (b)) regarding the establishment of a demonstration program under which--

      (1) covered beneficiaries under chapter 55 of title 10, United States Code, who are also entitled to benefits under part A of the medicare program are permitted to enroll in the managed care option of the TRICARE program; and

      (2) the Secretary of Health and Human Services reimburses the Secretary of Defense from the Medicare program on a capitated basis for the costs of providing health care services to military retirees who enroll.

    (b) SPECIFIC ELEMENTS OF REPORT- The report shall include the following:

      (1) The number of covered beneficiaries described in subsection (a) who are projected to participate in the demonstration program and the minimum number of such participants necessary to conduct the demonstration program effectively.

      (2) A plan for notifying such covered beneficiaries of their eligibility for enrollment in the demonstration program and for any other matters connected with enrollment.

      (3) A recommendation for the duration of the demonstration program.

      (4) A recommendation for the geographic regions in which the demonstration program should be conducted.

      (5) The appropriate level of capitated reimbursement, and a schedule for such reimbursement, from the Medicare program to the Department of Defense for health care services provided enrollees in the demonstration program.

      (6) An estimate of the amounts that, in the absence of the demonstration program, would be required to be allocated by the Department of Defense for the provision of health care services to covered beneficiaries described in subsection (a) who reside in the regions in which the demonstration program is proposed to be conducted.

      (7) An assessment of revisions to the allocation estimated under paragraph (6) that would result from the conduct of the demonstration program in such regions.

      (8) An estimate of the cost to the Department of Defense and to the Medicare program of providing health care services to covered beneficiaries described in subsection (a) who enroll in the demonstration program.

      (9) An assessment of the likelihood of cost shifting among the Department of Defense and the Medicare program under the demonstration program.

      (10) A proposal for mechanisms for reconciling and reimbursing any improper payments among the Department of Defense and the Medicare program under the demonstration program.

      (11) A methodology for evaluating the demonstration program, including cost analyses.

      (12) As assessment of the extent to which the TRICARE program is prepared to meet requirements of the Medicare program for purposes of the demonstration program and the provisions of law or regulation that would have to be waived in order to facilitate the carrying out of the demonstration program.

      (13) An assessment of the impact of the demonstration program on military readiness.

      (14) Contingency plans for the provision of health care services under the demonstration program in the event of the mobilization of health care personnel.

      (15) A recommendation of the reports that the Department of Defense and the Department of Health and Human Services should submit to Congress describing the conduct of the demonstration program.

    (c) PROGRAM FOR ENROLLMENT IN TRICARE FEE-FOR-SERVICE OPTION- Not later than January 3, 1997, the Secretary of Defense and the Secretary of Health and Human Services shall jointly submit to Congress and the President a report on the feasibility and advisability of expanding the demonstration program referred to in subsection (a) so as to provide the Department of Defense with reimbursement from the Medicare program on a fee-for-service basis for health care services provided covered beneficiaries described in subsection (a) who enroll in the demonstration program. The report shall include a proposal for the expansion of the program if the expansion is determined to be advisable.

Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DEFINITIONS.

    In this subtitle:

      (1) The term ‘administering Secretaries’ means the Secretary of Defense, the Secretary of Transportation, and the Secretary of Health and Human Services.

      (2) The term ‘agreement’ means the agreement required under section 722(b) between the Secretary of Defense and a designated provider.

      (3) The term ‘capitation payment’ means an actuarially sound payment for a defined set of health care services that is established on a per enrollee per month basis.

      (4) The term ‘covered beneficiary’ means a beneficiary under chapter 55 of title 10, United States Code, other than a beneficiary under section 1074(a) of such title.

      (5) The term ‘designated provider’ means a public or nonprofit private entity that was a transferee of a Public Health Service hospital or other station under section 987 of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35; 42 U.S.C. 248b) and that, before the date of the enactment of this Act, was deemed to be a facility of the uniformed services for the purposes of chapter 55 of title 10, United States Code. The term includes any legal successor in interest of the transferee.

      (6) The term ‘enrollee’ means a covered beneficiary who enrolls with a designated provider.

      (7) The term ‘health care services’ means the health care services provided under the health plan known as the ‘TRICARE PRIME’ option under the TRICARE program.

      (8) The term ‘Secretary’ means the Secretary of Defense.

      (9) The term ‘TRICARE program’ means the managed health care program that is established by the Secretary of Defense under the authority of chapter 55 of title 10, United States Code, principally section 1097 of such title, and includes the competitive selection of contractors to financially underwrite the delivery of health care services under the Civilian Health and Medical Program of the Uniformed Services.

SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES HEALTH CARE DELIVERY SYSTEM.

    (a) INCLUSION IN SYSTEM- The health care delivery system of the uniformed services shall include the designated providers.

    (b) AGREEMENTS TO PROVIDE MANAGED HEALTH CARE SERVICES- (1) After consultation with the other administering Secretaries, the Secretary of Defense shall negotiate and enter into an agreement with each designated provider under which the designated provider will provide health care services in or through managed care plans to covered beneficiaries who enroll with the designated provider.

    (2) The agreement shall be entered into on a sole source basis. The Federal Acquisition Regulation, except for those requirements regarding competition, issued pursuant to section 25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements as acquisitions of commercial items.

    (3) The implementation of an agreement is subject to availability of funds for such purpose.

    (c) EFFECTIVE DATE OF AGREEMENTS- (1) Unless an earlier effective date is agreed upon by the Secretary and the designated provider, the agreement shall take effect upon the later of the following:

      (A) The date on which a managed care support contract under the TRICARE program is implemented in the service area of the designated provider.

      (B) October 1, 1997.

    (2) Notwithstanding paragraph (1), the designated provider whose service area includes Seattle, Washington, shall implement its agreement as soon as the agreement permits.

    (d) TEMPORARY CONTINUATION OF EXISTING PARTICIPATION AGREEMENTS- The Secretary shall extend the participation agreement of a designated provider in effect immediately before the date of the enactment of this Act under section 718(c) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c) until the agreement required by this section takes effect under subsection (c).

    (e) SERVICE AREA- The Secretary may not reduce the size of the service area of a designated provider below the size of the service area in effect as of September 30, 1996.

    (f) COMPLIANCE WITH ADMINISTRATIVE REQUIREMENTS- (1) Unless otherwise agreed upon by the Secretary and a designated provider, the designated provider shall comply with necessary and appropriate administrative requirements established by the Secretary for other providers of health care services and requirements established by the Secretary of Health and Human Services for risk-sharing contractors under section 1876 of the Social Security Act (42 U.S.C. 1395mm). The Secretary and the designated provider shall determine and apply only such administrative requirements as are minimally necessary and appropriate. A designated provider shall not be required to comply with a law or regulation of a State government requiring licensure as a health insurer or health maintenance organization.

    (2) A designated provider may not contract out more than five percent of its primary care enrollment without the approval of the Secretary, except in the case of primary care contracts between a designated provider and a primary care contractor in force on the date of the enactment of this Act.

SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED PROVIDERS.

    (a) UNIFORM BENEFIT REQUIRED- A designated provider shall offer to enrollees the health benefit option prescribed and implemented by the Secretary under section 731 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note), including accompanying cost-sharing requirements.

    (b) TIME FOR IMPLEMENTATION OF BENEFIT- A designated provider shall offer the health benefit option described in subsection (a) to enrollees upon the later of the following:

      (1) The date on which health care services within the health care delivery system of the uniformed services are rendered through the TRICARE program in the region in which the designated provider operates.

      (2) October 1, 1997.

    (c) ADJUSTMENTS- The Secretary may establish a later date under subsection (b)(2) or prescribe reduced cost-sharing requirements for enrollees.

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

    (a) FISCAL YEAR 1997 LIMITATION- (1) During fiscal year 1997, the number of covered beneficiaries who are enrolled in managed care plans offered by designated providers may not exceed the number of such enrollees as of October 1, 1995.

    (2) The Secretary may waive the limitation under paragraph (1) if the Secretary determines that additional enrollment authority for a designated provider is required to accommodate covered beneficiaries who are dependents of members of the uniformed services entitled to health care under section 1074(a) of title 10, United States Code.

    (b) PERMANENT LIMITATION- For each fiscal year beginning after September 30, 1997, the number of enrollees in managed care plans offered by designated providers may not exceed 110 percent of the number of such enrollees as of the first day of the immediately preceding fiscal year. The Secretary may waive this limitation as provided in subsection (a)(2).

    (c) RETENTION OF CURRENT ENROLLEES- An enrollee in the managed care plan of a designated provider as of September 30, 1997, or such earlier date as the designated provider and the Secretary may agree upon, shall continue receiving services from the designated provider pursuant to the agreement entered into under section 722 unless the enrollee disenrolls from the designated provider. Except as provided in subsection (e), the administering Secretaries may not disenroll such an enrollee unless the disenrollment is agreed to by the Secretary and the designated provider.

    (d) ADDITIONAL ENROLLMENT AUTHORITY- Other covered beneficiaries may also receive health care services from a designated provider, except that the designated provider may market such services to, and enroll, only those covered beneficiaries who--

      (1) do not have other primary health insurance coverage (other than Medicare coverage) covering basic primary care and inpatient and outpatient services; or

      (2) are enrolled in the direct care system under the TRICARE program, regardless of whether the covered beneficiaries were users of the health care delivery system of the uniformed services in prior years.

    (e) SPECIAL RULE FOR MEDICARE-ELIGIBLE BENEFICIARIES- If a covered beneficiary who desires to enroll in the managed care program of a designated provider is also entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.), the covered beneficiary shall elect whether to receive health care services as an enrollee or under part A of title XVIII of the Social Security Act. The Secretary may disenroll an enrollee who subsequently violates the election made under this subsection and receives benefits under part A of title XVIII of the Social Security Act.

    (f) INFORMATION REGARDING ELIGIBLE COVERED BENEFICIARIES- The Secretary shall provide, in a timely manner, a designated provider with an accurate list of covered beneficiaries within the marketing area of the designated provider to whom the designated provider may offer enrollment.

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

    (a) APPLICATION OF PAYMENT RULES- Subject to subsection (b), the Secretary shall require a private facility or

health care provider that is a health care provider under the Civilian Health and Medical Program of the Uniformed Services to apply the payment rules described in section 1074(c) of title 10, United States Code, in imposing charges for health care that the private facility or provider provides to enrollees of a designated provider.

    (b) AUTHORIZED ADJUSTMENTS- The payment rules imposed under subsection (a) shall be subject to such modifications as the Secretary considers appropriate. The Secretary may authorize a lower rate than the maximum rate that would otherwise apply under subsection (a) if the lower rate is agreed to by the designated provider and the private facility or health care provider.

    (c) REGULATIONS- The Secretary shall prescribe regulations to implement this section after consultation with the other administering Secretaries.

    (d) CONFORMING AMENDMENT- Section 1074 of title 10, United States Code, is amended by striking out subsection (d).

SEC. 726. PAYMENTS FOR SERVICES.

    (a) FORM OF PAYMENT- Unless otherwise agreed to by the Secretary and a designated provider, the form of payment for health care services provided by a designated provider shall be on a full risk capitation payment basis. The capitation payments shall be negotiated and agreed upon by the Secretary and the designated provider. In addition to such other factors as the parties may agree to apply, the capitation payments shall be based on the utilization experience of enrollees and competitive market rates for equivalent health care services for a comparable population to such enrollees in the area in which the designated provider is located.

    (b) LIMITATION ON TOTAL PAYMENTS- Total capitation payments for health care services to a designated provider shall not exceed an amount equal to the cost that would have been incurred by the Government if the enrollees had received such health care services through a military treatment facility, the TRICARE program, or the Medicare program, as the case may be.

    (c) ESTABLISHMENT OF PAYMENT RATES ON ANNUAL BASIS- The Secretary and a designated provider shall establish capitation payments on an annual basis, subject to periodic review for actuarial soundness and to adjustment for any adverse or favorable selection reasonably anticipated to result from the design of the program under this subtitle.

    (d) ALTERNATIVE BASIS FOR CALCULATING PAYMENTS- After September 30, 1999, the Secretary and a designated provider may mutually agree upon a new basis for calculating capitation payments.

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) REPEALS- The following provisions of law are repealed:

      (1) Section 911 of the Military Construction Authorization Act, 1982 (42 U.S.C. 248c).

      (2) Section 1252 of the Department of Defense Authorization Act, 1984 (42 U.S.C. 248d).

      (3) Section 718(c) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c note).

      (4) Section 726 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c note).

    (b) EFFECTIVE DATE- The amendments made by paragraphs (1), (2), and (3) of subsection (a) shall take effect on October 1, 1997.

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

SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING NONMEDICALLY NECESSARY TREATMENT IN CONNECTION WITH CERTAIN CLINICAL TRIALS.

    (a) WAIVER AUTHORITY- Paragraph (13) of section 1079(a) of title 10, United States Code, is amended--

      (1) by striking out ‘any service’ and inserting in lieu thereof ‘Any service’;

      (2) by striking out the semicolon at the end and inserting in lieu thereof a period; and

      (3) by adding at the end the following: ‘Pursuant to an agreement with the Secretary of Health and Human Services and under such regulations as the Secretary of Defense may prescribe, the Secretary of Defense may waive the operation of this paragraph in connection with clinical trials sponsored or approved by the National Institutes of Health if the Secretary of Defense determines that such a waiver will promote access by covered beneficiaries to promising new treatments and contribute to the development of such treatments.’.

    (b) CLERICAL AMENDMENTS- Such section is further amended--

      (1) in the matter preceding paragraph (1), by striking out ‘except that--’ and inserting in lieu thereof ‘except as follows:’;

      (2) by capitalizing the first letter of the first word of each of paragraphs (1) through (17);

      (3) by striking out the semicolon at the end of each of paragraphs (1) through (12) and paragraphs (14) and (15) and inserting in lieu thereof a period; and

      (4) in paragraph (16), by striking out ‘; and’ and inserting in lieu thereof a period.

SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-CARE PROVIDERS UNDER CHAMPUS.

    Section 1079(h) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (5) as paragraph (6); and

      (2) by inserting after paragraph (4) the following new paragraph:

    ‘(5) In addition to the authority provided under paragraph (4), the Secretary may authorize the commander of a facility of the uniformed services, the lead agent (if other than the commander), and the health care contractor to modify the payment limitations under paragraph (1) for certain health care providers when necessary to ensure both the availability of certain services for covered beneficiaries and lower costs than would otherwise be incurred to provide the services.’.

SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS REFUNDS TO CURRENT YEAR APPROPRIATION.

    (a) CREDITS TO CHAMPUS ACCOUNTS- (1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1079 the following new section:

‘Sec. 1079a. CHAMPUS: treatment of refunds and other amounts collected

    ‘All refunds and other amounts collected in the administration of the Civilian Health and Medical Program of the Uniformed Services shall be credited to the appropriation available for that program for the fiscal year in which the refund or amount is collected.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1079 the following new item:

      ‘1079a. CHAMPUS: treatment of refunds and other amounts collected.’.

    (b) CONFORMING REPEAL- Section 8094 of the Department of Defense Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 671), is repealed.

SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

    (a) REFERENCE TO INPATIENT MEDICAL CARE- (1) Section 1080(a) of title 10, United States Code, is amended by inserting ‘inpatient’ before ‘medical care’ in the first sentence.

    (2) Section 1086(e) of such title is amended in the first sentence by striking out ‘benefits’ and inserting in lieu thereof ‘inpatient medical care’.

    (b) WAIVERS AND EXCEPTIONS TO REQUIREMENTS- (1) Section 1080 of such title is amended by adding at the end the following new subsection:

    ‘(c) WAIVERS AND EXCEPTIONS TO REQUIREMENTS- (1) A covered beneficiary enrolled in a managed care plan offered pursuant to any contract or agreement under this chapter for the provision of health care services shall not be required to obtain a nonavailability-of-health-care statement as a condition for the receipt of health care.

    ‘(2) The Secretary of Defense may waive the requirement to obtain nonavailability-of-health-care statements following an evaluation of the effectiveness of such statements in optimizing the use of facilities of the uniformed services.’.

    (2) Section 1086(e) of such title is amended in the last sentence by striking out ‘section 1080(b)’ and inserting in lieu thereof ‘subsections (b) and (c) of section 1080’.

    (c) CONFORMING AMENDMENTS- Section 1080(b) of such title is amended--

      (1) by striking out ‘NONAVAILABILITY OF HEALTH CARE STATEMENTS’ and inserting in lieu thereof ‘NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS’; and

      (2) by striking out ‘nonavailability of health care statement’ and inserting in lieu thereof ‘nonavailability-of-health-care statement’.

SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND SECONDARY PAYER AUTHORITIES UNDER CHAMPUS.

    (a) RETENTION AND USE BY TREATMENT FACILITIES OF AMOUNTS COLLECTED- Subsection (g)(1) of section 1095 of title 10, United States Code, is amended by inserting ‘or through’ after ‘provided at’.

    (b) EXPANSION OF DEFINITION OF THIRD-PARTY PAYER- Subsection (h) of such section is amended--

      (1) in the first sentence of paragraph (1), by inserting ‘and a workers’ compensation program or plan’ before the period; and

      (2) in paragraph (2)--

        (A) by striking out ‘organization and’ and inserting in lieu thereof a ‘organization,’; and

        (B) by inserting before the period at the end the following: ‘, and a personal injury protection plan or medical payments benefit plan for personal injuries resulting from the operation of a motor vehicle’.

    (c) APPLICABILITY OF SECONDARY PAYER REQUIREMENT- Section 1079(j)(1) of such title is amended by inserting after ‘or health plan’ the following: ‘, including any plan offered by a third-party payer (as defined in section 1095(h)(1) of this title),’.

Subtitle E--Other Matters

SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION UNDER ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM AND UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM- Subsection (e) of section 2123 of title 10, United States Code, is amended to read as follows:

    ‘(e)(1) A member of the program who is relieved of the member’s active duty obligation under this subchapter before the completion of that active duty obligation may be given, with or without the consent of the member, any of the following alternative obligations, as determined by the Secretary of the military department concerned:

      ‘(A) A service obligation in another armed force for a period of time not less than the member’s remaining active duty service obligation.

      ‘(B) A service obligation in a component of the Selected Reserve for a period not less than twice as long as the member’s remaining active duty service obligation.

      ‘(C) Repayment to the Secretary of Defense of a percentage of the total cost incurred by the Secretary under this subchapter on behalf of the member equal to the percentage of the member’s total active duty service obligation being relieved, plus interest.

    ‘(2) In addition to the alternative obligations specified in paragraph (1), if the member is relieved of an active duty obligation by reason of the separation of the member because of a physical disability, the Secretary of the military department concerned may give the member a service obligation as a civilian employee employed as a health care professional in a facility of the uniformed services for a period of time equal to the member’s remaining active duty service obligation.

    ‘(3) The Secretary of Defense shall prescribe regulations describing the manner in which an alternative obligation may be given under this subsection.’.

    (b) UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES- Section 2114 of title 10, United States Code is amended by adding at the end the following new subsection:

    ‘(h) A graduate of the University who is relieved of the graduate’s active-duty service obligation under subsection (b) before the completion of that active-duty service obligation may be given, with or without the consent of the graduate, an alternative obligation in the same manner as provided in subparagraphs (A) and (B) of paragraph (1) of section 2123(e)(1) of this title or paragraph (2) of such section for members of the Armed Forces Health Professions Scholarship and Financial Assistance program.’.

    (c) APPLICATION OF AMENDMENTS- The amendments made by this section shall apply with respect to individuals who first become members of the Armed Forces Health Professions Scholarship and Financial Assistance program or students of the Uniformed Services University of the Health Sciences on or after October 1, 1996.

    (d) TRANSITION PROVISION- (1) In the case of any member of the Armed Forces Health Professions Scholarship and Financial Assistance program who, as of October 1, 1996, is serving an active duty obligation under the program or is incurring an active duty obligation as a participant in the program, and who is subsequently relieved of the active duty obligation before the completion of the obligation, the alternative obligations authorized by the amendment made by subsection (a) may be used by the Secretary of the military department concerned with the agreement of the member.

    (2) In the case of any person who, as of October 1, 1996, is serving an active-duty service obligation as a graduate of the Uniformed Services University of the Health Sciences or is incurring an active-duty service obligation as a student of the University, and who is subsequently relieved of the active-duty service obligation before the completion of the obligation, the alternative obligations authorized by the amendment made by subsection (b) may be implemented by the Secretary of Defense with the agreement of the person.

    (e) REPORT ON UTILIZATION OF GRADUATES OF UNIVERSITY- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the utilization by the Department of Defense of graduates of the Uniformed Services University of the Health Sciences. The report shall include a discussion of means of ensuring that graduates of the University have received training in medical specialties for which the Department has particular need.

SEC. 742. EXTERNAL PEER REVIEW FOR DEFENSE HEALTH PROGRAM EXTRAMURAL MEDICAL RESEARCH INVOLVING HUMAN SUBJECTS.

    (a) ESTABLISHMENT OF EXTERNAL PEER REVIEW PROCESS- The Secretary of Defense shall establish a peer review process that will use persons who are not officers or employees of the Government to review the research protocols of medical research projects.

    (b) PEER REVIEW REQUIREMENTS- Funds of the Department of Defense may not be obligated or expended for any medical research project unless the research protocol for the project has been approved by the external peer review process established under subsection (a).

    (c) MEDICAL RESEARCH PROJECT DEFINED- For purposes of this section, the term ‘medical research project’ means a research project that--

      (1) involves the participation of human subjects;

      (2) is conducted solely by a non-Federal entity; and

      (3) is funded through the Defense Health Program account.

    (d) EFFECTIVE DATE- The peer review requirements of subsection (b) shall take effect on October 1, 1996, and, except as provided in subsection (e), shall apply to all medical research projects proposed funded on or after that date, including

medical research projects funded pursuant to any requirement of law enacted before, on, or after that date.

    (e) EXCEPTIONS- Only the following medical research projects shall be exempt from the peer review requirements of sub- section (b):

      (1) A medical research project that the Secretary determines has been substantially completed by October 1, 1996.

      (2) A medical research project funded pursuant to any provision of law enacted on or after that date if the provision of law specifically refers to this section and specifically states that the peer review requirements do not apply.

SEC. 743. INDEPENDENT RESEARCH REGARDING GULF WAR SYNDROME.

    (a) DEFINITIONS- For purposes of this section:

      (1) The term ‘Gulf War service’ means service on active duty as a member of the Armed Forces in the Southwest Asia theater of operations during the Persian Gulf War.

      (2) The term ‘Gulf War syndrome’ means the complex of illnesses and symptoms commonly known as Gulf War syndrome.

      (3) The term ‘Persian Gulf War’ has the meaning given that term in section 101(33) of title 38, United States Code.

    (b) RESEARCH- The Secretary of Defense shall provide, by contract, grant, or other transaction, for scientific research to be carried out by entities independent of the Federal Government on possible causal relationships between Gulf War syndrome and--

      (1) the possible exposures of members of the Armed Forces to chemical warfare agents or other hazardous materials during Gulf War service; and

      (2) the use by the Department of Defense during the Persian Gulf War of combinations of various inoculations and investigational new drugs.

    (c) PROCEDURES FOR AWARDING GRANTS- The Secretary shall prescribe the procedures to be used to make research awards under subsection (b). The procedures shall--

      (1) include a comprehensive, independent peer-review process for the evaluation of proposals for scientific research that are submitted to the Department of Defense; and

      (2) provide for the final selection of proposals for award to be based on the scientific merit and program relevance of the proposed research.

    (d) AVAILABILITY OF FUNDS- Of the amount authorized to be appropriated under section 301(21) for defense medical programs, $10,000,000 is available for research under subsection (b).

SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF DEPARTMENT OF DEFENSE RELATING TO GULF WAR ILLNESSES.

    (a) MEDICAL RESEARCH AND CLINICAL CARE PROGRAMS- The Comptroller General shall analyze the effectiveness of the medical research programs and clinical care programs of the Department of Defense that relate to illnesses that might have been contracted by members of the Armed Forces as a result of service in the Southwest Asia theater of operations during the Persian Gulf War.

    (b) POLICIES REGARDING INVESTIGATIONAL NEW DRUGS- The Comptroller General shall analyze the scope and effectiveness of the policies of the Department of Defense with respect to--

      (1) the use of investigational new drugs during the Persian Gulf War to treat members of the Armed Forces who served in the Southwest Asia theater of operations; and

      (2) the current use of investigational new drugs to treat illnesses referred to in subsection (a).

    (c) ADMINISTRATION OF MEDICAL RECORDS- The Comptroller General shall analyze the administration of medical records by the military departments in order to assess the extent to which such records accurately reflect the pre-deployment medical assessments, immunization records, informed consent releases, complaints during routine sick call, emergency room visits, visits with unit medics during deployment, and other relevant medical information relating to the members and former members referred to in subsection (a) with respect to the illnesses referred to in that subsection.

    (d) REPORTS- Not later than March 1, 1997, the Comptroller General shall submit to Congress a separate report on each of the analyses required under subsections (a), (b), and (c).

SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY PROGRAM.

    Not later than April 1, 1997, the Secretary of Defense shall submit to Congress a report evaluating the impact on the military health care system of limiting the service area of a facility designated as part of the specialized treatment facility program under section 1105 of title 10, United States Code, to not more than 100 miles from the facility.

SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION OF MEDICAL AND DENTAL CARE FOR MEMBERS OF RESERVE COMPONENTS.

    (a) STUDY- (1) In consultation with the Secretary of Transportation, the Secretary of Defense shall conduct a study of means of improving the provision of medical and dental care to members of the reserve components referred to in paragraph (2) in order to ensure uniformity and consistency in the provision of such care to such members.

    (2) The members of the reserve components referred to in paragraph (1) are the following:

      (A) Members on active duty, including active duty for training and annual training duty.

      (B) Members on full-time National Guard duty.

      (C) Members on inactive-duty training, regardless of whether such members are in a pay or nonpay status.

    (b) REPORT- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the study conducted under subsection (a). The report shall include such recommendations (including recommendations for legislation) as the Secretary considers appropriate.

SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    It is the sense of Congress that the Secretary of Defense should work with the Secretary of the Treasury to interpret section 117 of the Internal Revenue Code of 1986 so that the limitation on the amount of a qualified scholarship or qualified tuition reduction excluded from gross income does not apply to any portion of a scholarship or financial assistance provided by the Secretary of Defense to a person enrolled in the Armed Forces Health Professions Scholarship and Financial Assistance program under subchapter I of chapter 105 of title 10, United States Code.

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

Subtitle A--Acquisition Management

      Sec. 801. Procurement technical assistance programs.

      Sec. 802. Extension of pilot mentor-protege program.

      Sec. 803. Authority to waive certain requirements for defense acquisition pilot programs.

      Sec. 804. Modification of authority to carry out certain prototype projects.

      Sec. 805. Increase in threshold amounts for major systems.

      Sec. 806. Revisions in information required to be included in selected acquisition reports.

      Sec. 807. Increase in simplified acquisition threshold for humanitarian or peacekeeping operations.

      Sec. 808. Expansion of audit reciprocity among Federal agencies to include post-award audits.

      Sec. 809. Excessive compensation of certain contractor personnel.

      Sec. 810. Exception to prohibition on procurement of foreign goods.

Subtitle B--Other Matters

      Sec. 821. Prohibition on release of contractor proposals under Freedom of Information Act.

      Sec. 822. Amendments relating to reports on procurement regulatory activity.

      Sec. 823. Amendment of multiyear limitation on contracts for inspection, maintenance, and repair.

      Sec. 824. Streamlined notice requirements to contractors and employees regarding termination or substantial reduction in contracts under major defense programs.

      Sec. 825. Repeal of notice requirements for substantially or seriously affected parties in downsizing efforts.

      Sec. 826. Study of effectiveness of defense mergers.

      Sec. 827. Annual report relating to Buy American Act.

      Sec. 828. Foreign environmental technology.

      Sec. 829. Assessment of national defense technology and industrial base and dependency of base on supplies available only from foreign countries.

      Sec. 830. Expansion of report on implementation of automated information systems to include additional matters regarding information resources management.

      Sec. 831. Year 2000 software conversion.

      Sec. 832. Procurement from firms in industrial base for production of small arms.

      Sec. 833. Cable television franchise agreements.

Subtitle A--Acquisition Management

SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) FUNDING- Of the amount authorized to be appropriated under section 301(5), $12,000,000 shall be available for carrying out the provisions of chapter 142 of title 10, United States Code.

    (b) SPECIFIC PROGRAMS- Of the amounts made available pursuant to subsection (a), $600,000 shall be available for fiscal year 1997 for the purpose of carrying out programs sponsored by eligible entities referred to in subparagraph (D) of section 2411(1) of title 10, United States Code, that provide procurement technical assistance in distressed areas referred to in subparagraph (B) of section 2411(2) of such title. If there is an insufficient number of satisfactory proposals for cooperative agreements in such distressed areas to allow effective use of the funds made available in accordance with this subsection in such areas, the funds shall be allocated among the Defense Contract Administration Services regions in accordance with section 2415 of such title.

SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j) of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amended--

      (1) in paragraph (1), by striking out ‘1995’ and inserting in lieu thereof ‘1998’; and

      (2) in paragraph (2), by striking out ‘1996’ and inserting in lieu thereof ‘1999’.

SEC. 803. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS FOR DEFENSE ACQUISITION PILOT PROGRAMS.

    (a) AUTHORITY- The Secretary of Defense may waive sections 2399, 2403, 2432, and 2433 of title 10, United States Code, in accordance with this section for any defense acquisition program designated by the Secretary of Defense for participation in the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note).

    (b) OPERATIONAL TEST AND EVALUATION- The Secretary of Defense may waive the requirements for operational test and evaluation for such a defense acquisition program as set forth in section 2399 of title 10, United States Code, if the Secretary--

      (1) determines (without delegation) that such test would be unreasonably expensive or impractical;

      (2) develops a suitable alternate operational test program for the system concerned;

      (3) describes in the test and evaluation master plan, as approved by the Director of Operational Test and Evaluation, the method of evaluation that will be used to evaluate whether the system will be effective and suitable for combat; and

      (4) submits to the congressional defense committees a report containing the determination that was made under paragraph (1), a justification for that determination, and a copy of the plan required by paragraph (3).

    (c) CONTRACTOR GUARANTEES FOR MAJOR WEAPONS SYSTEMS- The Secretary of Defense may waive the requirements of section 2403 of title 10, United States Code, for such a defense acquisition program if an alternative guarantee is used that ensures high quality weapons systems.

    (d) SELECTED ACQUISITION REPORTS- The Secretary of Defense may waive the requirements of sections 2432 and 2433 of title 10, United States Code, for such a defense acquisition program if the Secretary provides a single annual report to Congress at the end of each fiscal year that describes the status of the program in relation to the baseline description for the program established under section 2435 of such title.

SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

    (a) AUTHORIZED OFFICIALS- (1) Subsection (a) of section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1721; 10 U.S.C. 2371 note) is amended by inserting ‘, the Secretary of a military department, or any other official designated by the Secretary of Defense’ after ‘Agency’.

    (2) Subsection (b)(2) of such section is amended to read as follows:

    ‘(2) To the maximum extent practicable, competitive procedures shall be used when entering into agreements to carry out projects under subsection (a).’.

    (b) EXTENSION OF AUTHORITY- Subsection (c) of such section is amended by striking out ‘terminate’ and all that follows and inserting in lieu thereof ‘terminate at the end of September 30, 1999.’.

    (c) CONFORMING AND TECHNICAL AMENDMENTS- Section 845 of such Act is further amended--

      (1) in subsection (b)--

        (A) in paragraph (1), by striking out ‘(c)(2) and (c)(3) of such section 2371, as redesignated by section 827(b)(1)(B),’ and inserting in lieu thereof ‘(e)(2) and (e)(3) of such section 2371’; and

        (B) in paragraph (2), by inserting after ‘Director’ the following: ‘, Secretary, or other official’; and

      (2) in subsection (c), by striking out ‘of the Director’.

SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

    (a) INCREASE AND ADJUSTMENT- Chapter 137 of title 10, United States Code, is amended--

      (1) in section 2302(5), by striking out the third sentence and inserting in lieu thereof the following: ‘A system shall be considered a major system if (A) the conditions of section 2302d of this title are satisfied, or (B) the system is designated a ‘major system’ by the head of the agency responsible for the system.’; and

      (2) by inserting after section 2302c the following:

‘Sec. 2302d. Major system: definitional threshold amounts

    ‘(a) DEPARTMENT OF DEFENSE SYSTEMS- For purposes of section 2302(5) of this title, a system for which the Department of Defense is responsible shall be considered a major system if--

      ‘(1) the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $115,000,000 (based on fiscal year 1990 constant dollars); or

      ‘(2) the eventual total expenditure for procurement of more than $540,000,000 (based on fiscal year 1990 constant dollars).

    ‘(b) CIVILIAN AGENCY SYSTEMS- For purposes of section 2302(5) of this title, a system for which a civilian agency is responsible shall be considered a major system if total expenditures for the system are estimated to exceed the greater of--

      ‘(1) $750,000 (based on fiscal year 1980 constant dollars); or

      ‘(2) the dollar threshold for a ‘major system’ established by the agency pursuant to Office of Management and Budget (OMB) Circular A-109, entitled ‘Major Systems Acquisitions’.

    ‘(c) ADJUSTMENT AUTHORITY- (1) The Secretary of Defense may adjust the amounts and the base fiscal year provided in subsection (a) on the basis of Department of Defense escalation rates.

    ‘(2) An amount, as adjusted under paragraph (1), that is not evenly divisible by $5,000,000 shall be rounded to the nearest multiple of $5,000,000. In the case of an amount that is evenly divisible by $2,500,000 but not evenly divisible by $5,000,000, the amount shall be rounded to the next higher multiple of $5,000,000.

    ‘(3) An adjustment under this subsection shall be effective after the Secretary transmits to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a written notification of the adjustment.’.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2302c the following:

      ‘2302d. Major system: definitional threshold amounts.’.

SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED IN SELECTED ACQUISITION REPORTS.

    Section 2432 of title 10, United States Code, is amended--

      (1) in subsection (c)(1)--

        (A) by striking out ‘and’ at the end of subpara-graph (B);

        (B) by redesignating subparagraph (C) as subparagraph (D); and

        (C) by inserting after subparagraph (B) the following new subparagraph (C):

      ‘(C) the current procurement unit cost for each major defense acquisition program included in the report and the history of that cost from the date the program was first included in a Selected Acquisition Report to the end of the quarter for which the current report is submitted; and’; and

      (2) in subsection (e), by striking out paragraph (8) and redesignating paragraph (9) as paragraph (8).

SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR HUMANITARIAN OR PEACEKEEPING OPERATIONS.

    (a) ARMED SERVICES ACQUISITIONS- Section 2302(7) of title 10, United States Code, is amended--

      (1) by inserting ‘(A)’ after ‘(7)’;

      (2) by inserting after ‘contingency operation’ the following: ‘or a humanitarian or peacekeeping operation’; and

      (3) by adding at the end the following:

      ‘(B) In subparagraph (A), the term ‘humanitarian or peacekeeping operation’ means a military operation in support of the provision of humanitarian or foreign disaster assistance or in support of a peacekeeping operation under chapter VI or VII of the Charter of the United Nations. The term does not include routine training, force rotation, or stationing.’.

    (b) CIVILIAN AGENCY ACQUISITIONS- Section 309(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(d)) is amended--

      (1) by inserting ‘(1)’ after ‘(d)’;

      (2) by inserting after ‘contingency operation’ the following: ‘or a humanitarian or peacekeeping operation’; and

      (3) by adding at the end the following:

    ‘(2) In paragraph (1):

      ‘(A) The term ‘contingency operation’ has the meaning given such term in section 101(a) of title 10, United States Code.

      ‘(B) The term ‘humanitarian or peacekeeping operation’ means a military operation in support of the provision of humanitarian or foreign disaster assistance or in support of a peacekeeping operation under chapter VI or VII of the Charter of the United Nations. The term does not include routine training, force rotation, or stationing.’.

SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL AGENCIES TO INCLUDE POST-AWARD AUDITS.

    (a) ARMED SERVICES ACQUISITIONS- Subsection (d) of section 2313 of title 10, United States Code, is amended to read as follows:

    ‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS- The head of an agency may not perform an audit of indirect costs under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification in any case in which the contracting officer determines that the objectives of the audit can reasonably be met by accepting the results of an audit that was conducted by any other department or agency of the Federal Government within one year preceding the date of the contracting officer’s determination.’.

    (b) CIVILIAN AGENCY ACQUISITIONS- Subsection (d) of section 304C of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254d) is amended to read as follows:

    ‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS- An executive agency may not perform an audit of indirect costs under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification in any case in which the contracting officer determines that the objectives of the audit can reasonably be met by accepting the results of an audit that was conducted by any other department or agency of the Federal Government within one year preceding the date of the contracting officer’s determination.’.

    (c) GUIDELINES FOR ACCEPTANCE OF AUDITS BY STATE AND LOCAL GOVERNMENTS RECEIVING FEDERAL ASSISTANCE- The Director of the Office of Management and Budget shall issue guidelines to ensure that an audit of indirect costs performed by the Federal Government is accepted by State and local governments that receive Federal funds under contracts, grants, or other Federal assistance programs.

SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

    (a) ARMED SERVICES PROCUREMENTS- (1) During fiscal year 1997, the head of an agency shall treat the costs described in paragraph (2) as not allowable under a covered contract, in the same manner as costs listed in section 2324(e)(1) of title 10, United States Code.

    (2) The costs covered by paragraph (1) are costs of compensation paid with respect to services of any one officer to the extent that the total amount of the compensation paid in a fiscal year exceeds $250,000.

    (b) CIVILIAN AGENCY PROCUREMENTS- (1) During fiscal year 1997, an executive agency shall treat the costs described in paragraph (2) as not allowable under a covered contract, in the same manner as costs listed in section 306(e)(1) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)).

    (2) The costs covered by paragraph (1) are costs of compensation paid with respect to services of any one officer to the extent that the total amount of the compensation paid in a fiscal year exceeds $250,000.

    (c) DEFINITIONS- In this section:

      (1) The term ‘head of an agency’ has the meaning provided in section 2302 of title 10, United States Code.

      (2) The term ‘executive agency’ has the meaning provided in section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472).

      (3) The term ‘covered contract’--

        (A) with respect to procurements subject to chapter 137 of title 10, United States Code, has the meaning provided by section 2324(l) of such title; and

        (B) with respect to procurements subject to title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.), has the meaning provided by section 306(l) of such Act (41 U.S.C. 256(l)).

      (4) The term ‘compensation’ means--

        (A) the total amount of wages as defined in section 3401(a) of the Internal Revenue Code of 1986 for the year concerned; and

        (B) the total amount of elective deferrals (within the meaning of section 402(g)(3) of such Code) for the year concerned.

      (5) The term ‘officer’ means a person who is determined to be in a senior management position as established by regulation.

    (d) REVIEW- The Administrator for Federal Procurement Policy, in consultation with the Secretary of Defense, shall conduct a comprehensive review of the levels of compensation received by senior executives of corporations performing a significant amount of business with the Federal Government in order to determine the appropriate cost allowability policy in this area. Such a review should include the following:

      (1) In consultation with the Secretary of the Treasury, an examination of the appropriate definition and treatment of compensation, including deferred compensation.

      (2) An examination of the appropriate definition of senior executive positions and any other positions that should be covered under the cost allowability policy.

      (3) An examination of how to apply the cost allowability policy to individual contracts and aggregations of contracts within a corporation.

      (4) Any other matter related to the cost allowability of executive compensation that the Administrator considers appropriate.

    (e) LEGISLATIVE PROPOSAL- Not later than March 1, 1997, the President shall submit to Congress a legislative proposal incorporating the conclusions reached by the review conducted under subsection (d) and establishing a statutory Government standard on the cost allowability of executive compensation.

SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF FOREIGN GOODS.

    Section 2534(d)(3) of title 10, United States Code, is amended by inserting ‘or would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items that is entered into under section 2531 of this title,’ after ‘a foreign country,’.

Subtitle B--Other Matters

SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS UNDER FREEDOM OF INFORMATION ACT.

    (a) ARMED SERVICES ACQUISITIONS- Section 2305 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS- (1) Except as provided in paragraph (2), a proposal in the possession or control of the Department of Defense may not be made available to any person under section 552 of title 5.

    ‘(2) Paragraph (1) does not apply to any proposal that is set forth or incorporated by reference in a contract entered into between the Department and the contractor that submitted the proposal.

    ‘(3) In this subsection, the term ‘proposal’ means any proposal, including a technical, management, or cost proposal, submitted by a contractor in response to the requirements of a solicitation for a competitive proposal.’.

    (b) CIVILIAN AGENCY ACQUISITIONS- Section 303B of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253b) is amended by adding at the end the following new subsection:

    ‘(m) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS- (1) Except as provided in paragraph (2), a proposal in the possession or control of an executive agency may not be made available to any person under section 552 of title 5, United States Code.

    ‘(2) Paragraph (1) does not apply to any proposal that is set forth or incorporated by reference in a contract entered into between the agency and the contractor that submitted the proposal.

    ‘(3) In this subsection, the term ‘proposal’ means any proposal, including a technical, management, or cost proposal, submitted by a contractor in response to the requirements of a solicitation for a competitive proposal.’.

SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT REGULATORY ACTIVITY.

    Subsection (g) of section 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) is amended--

      (1) in paragraph (1)--

        (A) by striking out ‘within 6 months after the date of enactment of this section and every 6 months thereafter’ and inserting in lieu thereof ‘every 12 months’; and

        (B) by inserting ‘and’ after the semicolon at the end;

      (2) in paragraph (2)(H), by striking out ‘; and’ and inserting in lieu thereof a period; and

      (3) by striking out paragraph (3).

SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS FOR INSPECTION, MAINTENANCE, AND REPAIR.

    Paragraph (14) of section 210(a) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended by striking out ‘for periods not exceeding three years’ and inserting in lieu thereof ‘for periods not exceeding five years’.

SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS AND EMPLOYEES REGARDING TERMINATION OR SUBSTANTIAL REDUCTION IN CONTRACTS UNDER MAJOR DEFENSE PROGRAMS.

    (a) ELIMINATION OF UNNECESSARY REQUIREMENTS- Section 4471 of the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 (division D of Public Law 102-484; 10 U.S.C. 2501 note) is amended--

      (1) by striking out subsection (a);

      (2) by striking out subsection (f), except paragraph (4);

      (3) by redesignating subsections (b), (c), (d), (e), and (g) as subsections (a), (b), (c), (d), and (f), respectively; and

      (4) by redesignating such paragraph (4) as subsection (e).

    (b) NOTICE TO CONTRACTORS- Subsection (a) of such section, as redesignated by subsection (a)(3), is amended by striking out paragraphs (1) and (2) and inserting in lieu thereof the following:

      ‘(1) shall identify each contract (if any) under major defense programs of the Department of Defense that will be terminated or substantially reduced as a result of the funding levels provided in that Act; and

      ‘(2) shall ensure that notice of the termination of, or substantial reduction in, the funding of the contract is provided--

        ‘(A) directly to the prime contractor under the con- tract; and

        ‘(B) directly to the Secretary of Labor.’.

    (c) NOTICE TO SUBCONTRACTORS- Subsection (b) of such section, as redesignated by subsection (a)(3), is amended--

      (1) by striking out ‘As soon as’ and all that follows through ‘prime contractor shall--’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘Not later than 60 days after the date on which the prime contractor for a contract under a major defense program receives notice under subsection (a), the prime contractor shall--’;

      (2) in paragraph (1)--

        (A) by striking out ‘for that program under a contract’ and inserting in lieu thereof ‘under that prime contract for subcontracts’; and

        (B) by striking out ‘for the program’; and

      (3) in paragraph (2)(A), by striking out ‘for the program under a contract’ and inserting in lieu thereof ‘for subcontracts’.

    (d) NOTICE TO EMPLOYEES AND STATE DISLOCATED WORKER UNIT- Subsection (c) of such section, as redesignated by subsection (a)(3), is amended by striking out ‘under subsection (a)(1)’ and all that follows through ‘a defense program,’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘under subsection (a),’.

    (e) CROSS REFERENCES AND CONFORMING AMENDMENTS- (1) Subsection (d) of such section, as redesignated by subsection (a)(3), is amended--

      (A) by striking out ‘a major defense program provided under subsection (d)(1)’ and inserting in lieu thereof ‘a defense contract provided under subsection (c)(1)’; and

      (B) by striking out ‘the program’ and inserting in lieu thereof ‘the contract’.

    (2) Subsection (e) of such section, as redesignated by subsection (a)(4), is amended--

      (A) by striking out ‘ELIGIBILITY’ and inserting in lieu thereof ‘ELIGIBILITY’; and

      (B) by striking out ‘under paragraph (3)’ and inserting in lieu thereof ‘or cancellation of the termination of, or substantial reduction in, contract funding’.

    (3) Subsection (f) of such section, as redesignated by subsection (a)(3), is amended in paragraph (2)--

      (A) by inserting ‘a defense contract under’ before ‘a major defense program’; and

      (B) by striking out ‘contracts under the program’ and inserting in lieu thereof ‘the funds obligated by the contract’.

SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY OR SERIOUSLY AFFECTED PARTIES IN DOWNSIZING EFFORTS.

    Sections 4101 and 4201 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1850, 1851; 10 U.S.C. 2391 note) are repealed.

SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

    (a) STUDY- The Secretary of Defense shall conduct a study on mergers and acquisitions in the defense sector. The study shall address the following:

      (1) The effectiveness of defense mergers and acquisitions in eliminating excess capacity within the defense industry.

      (2) The degree of change in the dependence by defense contractors on defense-related Federal contracts within their overall business after mergers.

      (3) The effect on defense industry employment resulting from defense mergers and acquisitions occurring during the three years preceding the date of the enactment of this Act.

      (4) The effect on competition for defense contracts.

    (b) REPORT- Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the results of the study conducted under subsection (a).

SEC. 827. ANNUAL REPORT RELATING TO BUY AMERICAN ACT.

    The Secretary of Defense shall submit to Congress, not later than 120 days after the end of each fiscal year, a report on the amount of purchases by the Department of Defense from foreign entities in that fiscal year. Such report shall separately indicate the dollar value of items for which the Buy American Act (41 U.S.C. 10a et seq.) was waived pursuant to any of the following:

      (1) Any reciprocal defense procurement memorandum of understanding described in section 849(c)(2) of Public Law 103-160 (41 U.S.C. 10b-2 note).

      (2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.)

      (3) Any international agreement to which the United States is a party.

SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

    Subsection (b) of section 2536 of title 10, United States Code, is amended to read as follows:

    ‘(b) WAIVER AUTHORITY- (1) The Secretary concerned may waive the application of subsection (a) to a contract award if--

      ‘(A) the Secretary concerned determines that the waiver is essential to the national security interests of the United States; or

      ‘(B) in the case of a contract awarded for environmental restoration, remediation, or waste management at a Department of Defense or Department of Energy facility--

        ‘(i) the Secretary concerned determines that the waiver will advance the environmental restoration, remediation, or waste management objectives of the department concerned and will not harm the national security interests of the United States; and

        ‘(ii) the entity to which the contract is awarded is controlled by a foreign government with which the Secretary concerned is authorized to exchange Restricted Data under section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2164(c)).

    ‘(2) The Secretary concerned shall notify Congress of any decision to grant a waiver under paragraph (1)(B) with respect to a contract. The contract may be awarded only after the end of the 45-day period beginning on the date the notification is received by the committees.’.

SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE AND DEPENDENCY OF BASE ON SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES.

    (a) NATIONAL SECURITY OBJECTIVES FOR NATIONAL TECHNOLOGY AND INDUSTRIAL BASE- Section 2501(a) of title 10, United States Code, is amended by adding at the end the following:

      ‘(5) Providing for the development, manufacture, and supply of items and technologies critical to the production and sustainment of advanced military weapon systems within the national technology and industrial base.’.

    (b) NATIONAL DEFENSE PROGRAM FOR ANALYSIS OF THE TECHNOLOGY AND INDUSTRIAL BASE- Section 2503 of title 10, United States Code, is amended--

      (1) in subsection (a)--

        (A) by striking out ‘(1) The Secretary of Defense, in consultation with the National Defense Technology and Industrial Base Council,’ in paragraph (1) and inserting in lieu thereof ‘The Secretary of Defense’; and

        (B) by striking out paragraphs (2), (3), and (4); and

      (2) in subsection (c)(3)(A)--

        (A) by striking out ‘the National Defense Technology and Industrial Base Council in’ and inserting in lieu thereof ‘the Secretary of Defense for’; and

        (B) by striking out ‘and the periodic plans required by section 2506 of this title’.

    (c) PERIODIC DEFENSE CAPABILITY ASSESSMENTS, INCLUDING FOREIGN DEPENDENCY- (1) Section 2505 of title 10, United States Code, is amended to read as follows:

‘Sec. 2505. National technology and industrial base: periodic defense capability assessments

    ‘(a) PERIODIC ASSESSMENT- Each fiscal year, the Secretary of Defense shall prepare selected assessments of the capability of the national technology and industrial base to attain the national security objectives set forth in section 2501(a) of this title. The Secretary of Defense shall prepare such assessments in consultation with the Secretary of Commerce and the Secretary of Energy.

    ‘(b) ASSESSMENT PROCESS- The Secretary of Defense shall ensure that technology and industrial capability assessments--

      ‘(1) describe sectors or capabilities, their underlying infrastructure and processes;

      ‘(2) analyze present and projected financial performance of industries supporting the sectors or capabilities in the assessment; and

      ‘(3) identify technological and industrial capabilities and processes for which there is potential for the national industrial and technology base not to be able to support the achievement of national security objectives.

    ‘(c) ASSESSMENT OF EXTENT OF DEPENDENCY ON FOREIGN SOURCE ITEMS- Each assessment under subsection (a) shall include a separate discussion and presentation regarding the extent to which the national technology and industrial base is dependent on items for which the source of supply, manufacture, or technology is outside of the United States and Canada and for which there is no immediately available source in the United States or Canada. The discussion and presentation regarding foreign dependency shall--

      ‘(1) identify cases that pose an unacceptable risk of foreign dependency, as determined by the Secretary; and

      ‘(2) present actions being taken or proposed to be taken to remedy the risk posed by the cases identified under paragraph (1), including efforts to develop a domestic source for the item in question.

    ‘(d) INTEGRATED PROCESS- The Secretary of Defense shall ensure that consideration of the technology and industrial base assessments is integrated into the overall budget, acquisition, and logistics support decision processes of the Department of Defense.’.

    (2) Section 2502(b) of title 10, United States Code, is amended--

      (A) by striking out ‘the following responsibilities:’ and all that follows through ‘effective cooperation’ and inserting in lieu thereof ‘the responsibility to ensure effective cooperation’; and

      (B) by striking out paragraph (2); and

    (3) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively, and adjusting the margin of such paragraphs two ems to the left.

    (d) REPEAL OF REQUIREMENT FOR PERIODIC DEFENSE CAPABILITY PLAN; DEVELOPMENT OF POLICY GUIDANCE- Section 2506 of title 10, United States Code, is amended to read as follows:

‘Sec. 2506. Department of Defense technology and industrial base policy guidance

    ‘(a) DEPARTMENTAL GUIDANCE- The Secretary of Defense shall prescribe departmental guidance for the attainment of each of the national security objectives set forth in section 2501(a) of this title. Such guidance shall provide for technological and industrial capability considerations to be integrated into the budget allocation, weapons acquisition, and logistics support decision processes.

    ‘(b) REPORT TO CONGRESS- The Secretary of Defense shall report on the implementation of the departmental guidance in the annual report to Congress submitted pursuant to section 2504 of this title.’.

    (e) ANNUAL REPORT TO CONGRESS- Subchapter II of chapter 148 of title 10, United States Code, is amended by inserting after section 2503 the following new section:

‘Sec. 2504. Annual report to Congress

    ‘The Secretary of Defense shall transmit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives by March 1 of each year a report which shall include the following information:

      ‘(1) A description of the departmental guidance prepared pursuant to section 2506 of this title.

      ‘(2) A description of the methods and analyses being undertaken by the Department of Defense alone or in cooperation with other Federal agencies, to identify and address concerns regarding technological and industrial capabilities of the national technology and industrial base.

      ‘(3) A description of the assessments prepared pursuant to section 2505 of this title and other analyses used in developing the budget submission of the Department of Defense for the next fiscal year.

      ‘(4) Identification of each program designed to sustain specific essential technological and industrial capabilities and processes of the national technology and industrial base.’.

    (f) REPEAL OF REQUIREMENT TO COORDINATE THE ENCOURAGEMENT OF TECHNOLOGY TRANSFER WITH THE COUNCIL- Subsection 2514(c) of title 10, United States Code, is amended by striking out paragraph (5).

    (g) CLERICAL AMENDMENTS- (1) The table of sections at the beginning of subchapter II of chapter 148 of title 10, United States Code, is amended by inserting after the item relating to section 2503 the following new item:

      ‘2504. Annual report to Congress.’.

    (2) Such table of sections is further amended by striking out the item relating to section 2506 and inserting in lieu thereof the following new item:

      ‘2506. Department of Defense technology and industrial base policy guidance.’.

    (h) REPEAL OF SUPERSEDED AND EXECUTED LAW- Sections 4218, 4219, and 4220 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2505 note and 2506 note) are repealed.

SEC. 830. EXPANSION OF REPORT ON IMPLEMENTATION OF AUTOMATED INFORMATION SYSTEMS TO INCLUDE ADDITIONAL MATTERS REGARDING INFORMATION RESOURCES MANAGEMENT.

    (a) EXPANDED REPORT- The Secretary of Defense shall include in the report submitted in 1997 under section 381(f) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 113 note) a discussion of the following matters relating to information resources management:

      (1) The progress made in implementing the Information Technology Management Reform Act of 1996 (division E of Public Law 104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the amendments made by that Act.

      (2) The progress made in implementing the strategy for the development or modernization of automated information systems for the Department of Defense, as required by section 366 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 275; 10 U.S.C. 113 note).

      (3) Plans of the Department of Defense for establishing an integrated framework for management of information resources within the department.

    (b) SPECIFIC ELEMENTS OF REPORT- The presentation of matters under subsection (a) shall specifically include a discussion of the following:

      (1) The status of the implementation of performance measures.

      (2) The specific actions being taken to link the proposed performance measures to the planning, programming, and budgeting system of the Department of Defense and to the life-cycle management processes of the department.

      (3) The results of pilot program testing of proposed performance measures.

      (4) The additional training necessary for the implementation of performance-based information management.

      (5) The department-wide actions that are necessary to comply with the requirements of the following provisions of law:

        (A) The amendments made by the Government Performance and Results Act of 1993 (Public Law 103-62; 107 Stat. 285).

        (B) The Information Technology Management Reform Act of 1996 (division E of Public Law 104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the amendments made by that Act.

        (C) Title V of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3349) and the amendments made by that title.

        (D) The Chief Financial Officers Act of 1990 (Public Law 101-576; 104 Stat. 2838) and the amendments made by that Act.

SEC. 831. YEAR 2000 SOFTWARE CONVERSION.

    (a) YEAR 2000 SOFTWARE CONVERSION- The Secretary of Defense shall ensure that, as soon as practicable, all information technology acquired by the Department of Defense pursuant to contracts entered into after September 30, 1996, has the capabilities to process date and date-related data in 2000.

    (b) ASSESSMENT- The Secretary, acting through the chief information officers within the department (as designated pursuant to section 3506 of title 44, United States Code), shall assess all information technology within the Department of Defense to determine the extent to which such technology has the capabilities to operate effectively.

    (c) PLAN- Not later than January 1, 1997, the Secretary shall submit to Congress a detailed plan for eliminating any

deficiencies identified pursuant to subsection (b). The plan shall include--

      (1) a list of affected major systems;

      (2) a description of how the deficiencies could affect the national security of the United States; and

      (3) an estimate and prioritization of the resources that are necessary to eliminate the deficiencies.

SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR PRODUCTION OF SMALL ARMS.

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

‘Sec. 2473. Procurements from the small arms production industrial base

    ‘(a) AUTHORITY TO LIMIT PROCUREMENTS TO CERTAIN SOURCES- To the extent that the Secretary of Defense determines necessary to preserve the small arms production industrial base, the Secretary may require that any procurement of property or services described in subsection (b) for the Department of Defense be made only from a firm in the small arms production industrial base.

    ‘(b) COVERED PROPERTY AND SERVICES- Subsection (a) applies to the following:

      ‘(1) Repair parts for small arms.

      ‘(2) Modifications of parts to improve small arms used by the armed forces.

    ‘(c) SMALL ARMS PRODUCTION INDUSTRIAL BASE- In this section, the term ‘small arms production industrial base’ means the firms comprising the small arms production industrial base, as described in the plan entitled ‘Preservation of Critical Elements of the Small Arms Industrial Base’, dated January 8, 1994, that was prepared by an independent assessment panel of the Army Science Board.’.

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

      ‘2473. Procurements from the small arms production industrial base.’.

SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

    Based on the advisory opinion from the United States Court of Federal Claims, In the Matter of the Department of Defense Cable Television Franchise Agreements, National Defense Authorization Act for Fiscal Year 1996, Section 823, No. 96-133X (July 11, 1996)--

      (1) cable television franchise agreements for the construction, installation, or capital improvement of cable systems at military installations shall be considered contracts for purposes of the Federal Acquisition Regulation;

      (2) cable television operators are entitled to recovery of their investments at such installations to the extent authorized in part 49 of the Federal Acquisition Regulation; and

      (3) the appropriate official of the Department of Defense shall promptly issue a written notice of the termination for the convenience of the Government of the contracts described in such advisory opinion and commence settlement negotiations pursuant to the requirements of part 49 of the Federal Acquisition Regulation.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--General Matters

      Sec. 901. Repeal of previously enacted reduction in number of statutory positions in Office of the Secretary of Defense.

      Sec. 902. Additional required reduction in defense acquisition workforce.

      Sec. 903. Reduction of personnel assigned to Office of the Secretary of Defense.

      Sec. 904. Report on military department headquarters staffs.

      Sec. 905. Matters to be considered in next assessment of current missions, responsibilities, and force structure of the unified combatant commands.

      Sec. 906. Transfer of authority to control transportation systems in time of war.

      Sec. 907. Codification of requirements relating to continued operation of the Uniformed Services University of the Health Sciences.

      Sec. 908. Joint Requirements Oversight Council.

      Sec. 909. Membership of the Ammunition Storage Board.

      Sec. 910. Removal of Secretary of the Army from membership on the Foreign Trade Zone Board.

      Sec. 911. Composition of aircraft accident investigation boards.

      Sec. 912. Mission of the White House Communications Agency.

Subtitle B--Force Structure Review

      Sec. 921. Short title.

      Sec. 922. Findings.

      Sec. 923. Quadrennial Defense Review.

      Sec. 924. National Defense Panel.

      Sec. 925. Postponement of deadlines.

      Sec. 926. Definitions.

Subtitle A--General Matters

SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER OF STATUTORY POSITIONS IN OFFICE OF THE SECRETARY OF DEFENSE.

    Section 903 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 401) is repealed.

SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION WORKFORCE.

    (a) ADDITIONAL REDUCTIONS FOR FISCAL YEAR 1997- Section 906(d) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 405) is amended in paragraph (1) by striking out ‘positions during fiscal year 1996’ and all that follows and inserting in lieu thereof ‘so that--

      ‘(A) the total number of defense acquisition personnel as of October 1, 1996, is less than the baseline number by at least 15,000; and

      ‘(B) the total number of defense acquisition personnel as of October 1, 1997, is less than the baseline number by at least 30,000.’.

    (b) BASELINE NUMBER- Such section is further amended by adding at the end the following new paragraph:

    ‘(3) For purposes of this subsection, the term ‘baseline number’ means the total number of defense acquisition personnel as of October 1, 1995.’.

SEC. 903. REDUCTION OF PERSONNEL ASSIGNED TO OFFICE OF THE SECRETARY OF DEFENSE.

    (a) PERMANENT LIMITATION ON OSD PERSONNEL- Effective October 1, 1999, the number of OSD personnel may not exceed 75 percent of the baseline number.

    (b) PHASED REDUCTION- The number of OSD personnel--

      (1) as of October 1, 1997, may not exceed 85 percent of the baseline number; and

      (2) as of October 1, 1998, may not exceed 80 percent of the baseline number.

    (c) BASELINE NUMBER- For purposes of this section, the term ‘baseline number’ means the number of OSD personnel as of October 1, 1994.

    (d) OSD PERSONNEL DEFINED- For purposes of this section, the term ‘OSD personnel’ means military and civilian personnel of the Department of Defense who are assigned to, or employed in, functions in the Office of the Secretary of Defense (including Direct Support Activities of that Office and the Washington Headquarters Services of the Department of Defense).

    (e) LIMITATION ON REASSIGNMENT OF FUNCTIONS- In carrying out reductions in the number of personnel assigned to, or employed in, the Office of the Secretary of Defense in order to comply with this section, the Secretary of Defense may not reassign functions solely in order to evade the requirements contained in this section.

    (f) FLEXIBILITY- If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (b) with respect to any fiscal year would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (a) during fiscal year 1999 would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. The authority under this subsection may be used only once, with respect to a single fiscal year.

    (g) REPEAL OF PRIOR REQUIREMENT- Section 901(d) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 401) is repealed.

SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.

    (a) REVIEW BY SECRETARY OF DEFENSE- The Secretary of Defense shall conduct a review of the size, mission, organization, and functions of the military department headquarters staffs. This review shall include the following:

      (1) An assessment on the adequacy of the present organization structure to efficiently and effectively support the mission of the military departments.

      (2) An assessment of options to reduce the number of personnel assigned to the military department headquarters staffs.

      (3) An assessment of the extent of unnecessary duplication of functions between the Office of the Secretary of Defense and the military department headquarters staffs.

      (4) An assessment of the possible benefits that could be derived from further functional consolidation between the civilian secretariat of the military departments and the staffs of the military service chiefs.

      (5) An assessment of the possible benefits that could be derived from reducing the number of civilian officers in

the military departments who are appointed by and with the advice and consent of the Senate.

    (b) REPORT- Not later than March 1, 1997, the Secretary of Defense shall submit to the congressional defense committees a report containing--

      (1) the findings and conclusions of the Secretary resulting from the review under subsection (a); and

      (2) a plan for implementing resulting recommendations, including proposals for legislation (with supporting rationale) that would be required as a result of the review.

    (c) REDUCTION IN TOTAL NUMBER OF PERSONNEL ASSIGNED- In developing the plan under subsection (b)(2), the Secretary shall make every effort to provide for significant reductions in the overall number of military and civilian personnel assigned to or serving in the military department headquarters staffs.

    (d) MILITARY DEPARTMENT HEADQUARTERS STAFFS DEFINED- For the purposes of this section, the term ‘military department headquarters staffs’ means the offices, organizations, and other elements of the Department of Defense comprising the following:

      (1) The Office of the Secretary of the Army.

      (2) The Army Staff.

      (3) The Office of the Secretary of the Air Force.

      (4) The Air Staff.

      (5) The Office of the Secretary of the Navy.

      (6) The Office of the Chief of Naval Operations.

      (7) Headquarters, Marine Corps.

SEC. 905. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF CURRENT MISSIONS, RESPONSIBILITIES, AND FORCE STRUCTURE OF THE UNIFIED COMBATANT COMMANDS.

    The Chairman of the Joint Chiefs of Staff shall consider, as part of the next periodic review by the Chairman of the missions, responsibilities, and force structure of the unified combatant commands pursuant to section 161(b) of title 10, United States Code, the following matters:

      (1) Whether there exists an adequate distribution of threats, mission requirements, and responsibilities for geographic areas among the regional unified combatant commands.

      (2) Whether reductions in the overall force structure of the Armed Forces permit the United States to better execute its warfighting plans through fewer or differently configured unified combatant commands, including--

        (A) a total of five or fewer commands, all of which are regional;

        (B) a total of three commands consisting of an eastward-oriented command, a westward-oriented command, and a central command;

        (C) a purely functional command structure, involving (for example) a first theater command, a second theater command, a logistics command, a special contingencies command, and a strategic command; or

        (D) any other command structure or configuration the Chairman finds appropriate.

      (3) Whether any missions, staff, facilities, equipment, training programs, or other assets or activities of the unified combatant commands are redundant.

      (4) Whether warfighting requirements are adequate to justify the current functional commands.

      (5) Whether the exclusion of certain nations from the Areas of Responsibility of the unified combatant commands presents difficulties with respect to the achievement of United States national security objectives in those areas.

      (6) Whether the current geographic boundary between the United States Central Command and the United States European Command through the Middle East could create command conflicts in the context of a major regional conflict in the Middle East region.

SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION SYSTEMS IN TIME OF WAR.

    (a) AUTHORITY OF SECRETARY OF DEFENSE- Section 4742 of title 10, United States Code, is amended by striking out ‘Secretary of the Army’ and inserting in lieu thereof ‘Secretary of Defense’.

    (b) TRANSFER OF SECTION- Such section, as amended by subsection (a), is transferred to the end of chapter 157 of such title and is redesignated as section 2644.

    (c) CONFORMING REPEAL- Section 9742 of such title is repealed.

    (d) CLERICAL AMENDMENTS- (1) The table of sections at the beginning of chapter 157 of such title is amended by adding at the end the following new item:

      ‘2644. Control of transportation systems in time of war.’.

    (2) The table of sections at the beginning of chapter 447 of such title is amended by striking out the item relating to section 4742.

    (3) The table of sections at the beginning of chapter 947 of such title is amended by striking out the item relating to section 9742.

SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO CONTINUED OPERATION OF THE UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) CODIFICATION OF EXISTING LAW- (1) Chapter 104 of title 10, United States Code, is amended by inserting after section 2112 the following new section:

‘Sec. 2112a. Continued operation of University

    ‘(a) CLOSURE PROHIBITED- The University may not be closed.

    ‘(b) PERSONNEL STRENGTH- During the five-year period beginning on October 1, 1996, the personnel staffing levels for the University may not be reduced below the personnel staffing levels for the University as of October 1, 1993.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2112 the following new item:

      ‘2112a. Continued operation of University.’.

    (b) REPEAL OF SUPERSEDED LAW- (1) Section 922 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note) is amended by striking out subsection (a).

    (2) Section 1071 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 U.S.C. 2112 note) is amended by striking out subsection (b).

SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    Section 181 of title 10, United States Code, as added effective January 31, 1997, is amended by adding at the end the following new subsection:

    ‘(d) AVAILABILITY OF OVERSIGHT INFORMATION TO CONGRESSIONAL DEFENSE COMMITTEES- (1) The Secretary of Defense shall ensure that, in the case of a recommendation by the Chairman to the Secretary that is approved by the Secretary, oversight information with respect to such recommendation that is produced as a result of the activities of the Joint Requirements Oversight Council is made available in a timely fashion to the congressional defense committees.

    ‘(2) In this subsection:

      ‘(A) The term ‘oversight information’ means information and materials comprising analysis and justification that are prepared to support a recommendation that is made to, and approved by, the Secretary of Defense.

      ‘(B) The term ‘congressional defense committees’ means--

        ‘(i) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

        ‘(ii) the Committee on National Security and the Committee on Appropriations of the House of Representatives.’.

SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

    Section 172(a) of title 10, United States Code, is amended by striking out ‘a joint board of officers selected by them’ and inserting in lieu thereof ‘a joint board selected by them composed of officers, civilian officers and employees of the Department of Defense, or both’.

SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON THE FOREIGN TRADE ZONE BOARD.

    The first section of the Act of June 18, 1934 (Public Law Numbered 397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C. 81a), popularly known as the ‘Foreign Trade Zones Act’, is amended--

      (1) in subsection (b), by striking out ‘the Secretary of the Treasury, and the Secretary of War’ and inserting in lieu thereof ‘and the Secretary of the Treasury’; and

      (2) in subsection (c), by striking out ‘Alaska, Hawaii,’.

SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION BOARDS.

    (a) SELECTION OF BOARD MEMBERS- (1) Chapter 134 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2255. Aircraft accident investigation boards: composition requirements

    ‘(a) REQUIRED MEMBERSHIP OF BOARDS- Whenever the Secretary of a military department convenes an aircraft accident investigation board to conduct an accident investigation (as described in section 2254(a)(2) of this title) with respect to a Class A accident involving an aircraft under the jurisdiction of the Secretary, the Secretary shall select the membership of the board so that--

      ‘(1) a majority of the members (or in the case of a board consisting of a single member, the member) is selected from units other than the mishap unit or a unit subordinate to the mishap unit; and

      ‘(2) in the case of a board consisting of more than one member, at least one member of the board is a member of the armed forces or an officer or an employee of the Department of Defense who possesses knowledge and expertise relevant to aircraft accident investigations.

    ‘(b) EXCEPTION- (1) The Secretary of the military department concerned may waive the requirement of subsection (a)(1) in the case of an aircraft accident if the Secretary determines that--

      ‘(A) it is not practicable to meet the requirement because of--

        ‘(i) the remote location of the aircraft accident;

        ‘(ii) an urgent need to promptly begin the investi-gation; or

        ‘(iii) a lack of available persons outside of the mishap unit who have adequate knowledge and expertise regarding the type of aircraft involved in the accident; and

      ‘(B) the objectivity and independence of the aircraft accident investigation board will not be compromised.

    ‘(2) The Secretary shall notify Congress of a waiver exercised under this subsection and the reasons therefor.

    ‘(c) CONSULTATION REQUIREMENT- In the case of an aircraft accident investigation board consisting of a single member, the member shall consult with a member of the armed forces or an officer or an employee of the Department of Defense who possesses knowledge and expertise relevant to aircraft accident investigations.

    ‘(d) DESIGNATION OF CLASS A ACCIDENTS- Not later than 60 days after an aircraft accident involving an aircraft under the jurisdiction of the Secretary of a military department, the Secretary shall determine whether the aircraft accident should be designated as a Class A accident for purposes of this section.

    ‘(e) DEFINITIONS- In this section:

      ‘(1) The term ‘Class A accident’ means an accident involving an aircraft that results in--

        ‘(A) the loss of life or permanent disability;

        ‘(B) damages to the aircraft, other property, or a combination of both, in an amount in excess of the amount specified by the Secretary of Defense for purposes of determining Class A accidents; or

        ‘(C) the destruction of the aircraft.

      ‘(2) The term ‘mishap unit’, with respect to an aircraft accident investigation, means the unit of the armed forces (at the squadron or battalion level or equivalent) to which was assigned the flight crew of the aircraft that sustained the accident that is the subject of the investigation.’.

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

      ‘2255. Aircraft accident investigation boards: composition requirements.’.

    (b) EFFECTIVE DATE- Section 2255 of title 10, United States Code, as added by subsection (a), shall apply with respect to any aircraft accident investigation board convened by the Secretary of a military department after the end of the six-month period beginning on the date of the enactment of this Act.

SEC. 912. MISSION OF THE WHITE HOUSE COMMUNICATIONS AGENCY.

    (a) TELECOMMUNICATIONS SUPPORT- The Secretary of Defense shall ensure that the activities of the White House Communications Agency in providing support services on a nonreimbursable basis for the President from funds appropriated for the Department of Defense for any fiscal year are limited to the provision of telecommunications support to the President and Vice President and to related elements (as defined in regulations of that agency and specified by the President with respect to particular individuals within those related elements).

    (b) OTHER SUPPORT- Support services other than telecommunications support services described in subsection (a) may be provided by the Department of Defense for the President through the White House Communications Agency on a reimbursable basis.

    (c) WHITE HOUSE COMMUNICATIONS AGENCY- For purposes of this section, the term ‘White House Communications Agency’ means the element of the Department of Defense within the Defense Communications Agency that is known on the date of the enactment of this Act as the White House Communications Agency and includes any successor agency.

    (d) REPORT ON ISSUES RAISED BY DOD INSPECTOR GENERAL REVIEW OF WHITE HOUSE COMMUNICATIONS AGENCY- Not later than October 1, 1996, or 30 days after the date of the enactment of this Act, whichever is later, the Secretary of Defense shall submit to Congress a report setting forth the actions taken by the Secretary to address the issues raised by the report of the Department of Defense Inspector General reviewing the mission of the White House Communications Agency.

    (e) QUARTERLY REPORTS DURING FISCAL YEAR 1997- Not later than 30 days after the end of each quarter of fiscal year 1997, the Secretary of Defense shall submit to Congress a report describing the support services other than telecommunications support services described in subsection (a) that were provided during the preceding quarter by the Department of Defense for the President through the White House Communications Agency.

    (f) EFFECTIVE DATE- This section takes effect on October 1, 1997, and applies to funds appropriated for the Department of Defense for any fiscal year after fiscal year 1997.

Subtitle B--Force Structure Review

SEC. 921. SHORT TITLE.

    This subtitle may be cited as the ‘Military Force Structure Review Act of 1996’.

SEC. 922. FINDINGS.

    Congress makes the following findings:

      (1) Since the collapse of the Soviet Union in 1991, the United States has conducted two substantial assessments of the force structure of the Armed Forces necessary to meet United States defense requirements.

      (2) The assessment by the Bush Administration (known as the ‘Base Force’ assessment) and the assessment by the Clinton Administration (known as the ‘Bottom-Up Review’) were intended to reassess the force structure of the Armed Forces in light of the changing realities of the post-Cold War world.

      (3) Both assessments served an important purpose in focusing attention on the need to reevaluate the military posture of the United States, but the pace of global change necessitates a new, comprehensive assessment of the defense strategy of the United States and the force structure of the Armed Forces required to meet the threats to the United States in the twenty-first century.

      (4) The Bottom-Up Review has been criticized on several points, including--

        (A) the assumptions underlying the strategy of planning to fight and win two nearly simultaneous major regional conflicts;

        (B) the force levels recommended to carry out that strategy; and

        (C) the funding proposed for such recommended force levels.

      (5) In response to the recommendations of the Commission on Roles and Missions of the Armed Forces, the Secretary of Defense endorsed the concept of conducting a quadrennial review of the defense program at the beginning of each newly elected Presidential administration, and the Department intends to complete the first such review in 1997.

      (6) The review is to involve a comprehensive examination of defense strategy, the force structure of the active, guard, and reserve components, force modernization plans, infrastructure, and other elements of the defense program and policies in order to determine and express the defense

strategy of the United States and to establish a revised defense program through the year 2005.

      (7) In order to ensure that the force structure of the Armed Forces is adequate to meet the challenges to the national security interests of the United States in the twenty-first century, to assist the Secretary of Defense in conducting the review referred to in paragraph (5), and to assess the appropriate force structure of the Armed Forces through the year 2010 and beyond (if practicable), it is important to provide for the conduct of an independent, nonpartisan review of the force structure that is more comprehensive than prior assessments of the force structure, extends beyond the quadrennial defense review, and explores innovative and forward-thinking ways of meeting such challenges.

SEC. 923. QUADRENNIAL DEFENSE REVIEW.

    (a) REQUIREMENT IN 1997- The Secretary of Defense, in consultation with the Chairman of the Joint Chiefs of Staff, shall complete in 1997 a review of the defense program of the United States intended to satisfy the requirements for a Quadrennial Defense Review as identified in the recommendations of the Commission on Roles and Missions of the Armed Forces. The review shall include a comprehensive examination of the defense strategy, force structure, force modernization plans, infrastructure, budget plan, and other elements of the defense program and policies with a view toward determining and expressing the defense strategy of the United States and establishing a revised defense program through the year 2005.

    (b) INVOLVEMENT OF NATIONAL DEFENSE PANEL- (1) The Secretary shall apprise the National Defense Panel established under section 924, on an ongoing basis, of the work undertaken in the conduct of the review.

    (2) Not later than March 14, 1997, the Chairman of the National Defense Panel shall submit to the Secretary the Panel’s assessment of work undertaken in the conduct of the review as of that date and shall include in the assessment the recommendations of the Panel for improvements to the review, including recommendations for additional matters to be covered in the review.

    (c) ASSESSMENTS OF REVIEW- Upon completion of the review, the Chairman of the Joint Chiefs of Staff and the Chairman of the National Defense Panel, on behalf of the Panel, shall each prepare and submit to the Secretary such Chairman’s assessment of the review in time for the inclusion of the assessment in its entirety in the report under subsection (d).

    (d) REPORT- Not later than May 15, 1997, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a comprehensive report on the review. The report shall include the following:

      (1) The results of the review, including a comprehensive discussion of the defense strategy of the United States and the force structure best suited to implement that strategy.

      (2) The threats examined for purposes of the review and the scenarios developed in the examination of such threats.

      (3) The assumptions used in the review, including assumptions relating to the cooperation of allies and mission-sharing, levels of acceptable risk, warning times, and intensity and duration of conflict.

      (4) The effect on the force structure of preparations for and participation in peace operations and military operations other than war.

      (5) The effect on the force structure of the utilization by the Armed Forces of technologies anticipated to be available by the year 2005, including precision guided munitions, stealth, night vision, digitization, and communications, and the changes in doctrine and operational concepts that would result from the utilization of such technologies.

      (6) The manpower and sustainment policies required under the defense strategy to support engagement in conflicts lasting more than 120 days.

      (7) The anticipated roles and missions of the reserve components in the defense strategy and the strength, capabilities, and equipment necessary to assure that the reserve components can capably discharge those roles and missions.

      (8) The appropriate ratio of combat forces to support forces (commonly referred to as the ‘tooth-to-tail’ ratio) under the defense strategy, including, in particular, the appropriate number and size of headquarter units and Defense Agencies for that purpose.

      (9) The air-lift and sea-lift capabilities required to support the defense strategy.

      (10) The forward presence, pre-positioning, and other anticipatory deployments necessary under the defense strategy for conflict deterrence and adequate military response to anticipated conflicts.

      (11) The extent to which resources must be shifted among two or more theaters under the defense strategy in the event of conflict in such theaters.

      (12) The advisability of revisions to the Unified Command Plan as a result of the defense strategy.

      (13) Any other matter the Secretary considers appropriate.

SEC. 924. NATIONAL DEFENSE PANEL.

    (a) ESTABLISHMENT- Not later than December 1, 1996, the Secretary of Defense shall establish a nonpartisan, independent panel to be known as the National Defense Panel (in this section referred to as the ‘Panel’). The Panel shall have the duties set forth in this section.

    (b) MEMBERSHIP- The Panel shall be composed of a chairman and eight other individuals appointed by the Secretary, in consultation with the chairman and ranking member of the Committee on Armed Services of the Senate and the chairman and ranking member of the Committee on National Security of the House of Representatives, from among individuals in the private sector who are recognized experts in matters relating to the national security of the United States.

    (c) DUTIES- The Panel shall--

      (1) conduct and submit to the Secretary the assessment of the review under section 923 that is required by subsection (b)(2) of that section;

      (2) conduct and submit to the Secretary the comprehensive assessment of the review that is required by subsection (c) of that section upon completion of the review; and

      (3) conduct the assessment of alternative force structures for the Armed Forces required under subsection (d).

    (d) ALTERNATIVE FORCE STRUCTURE ASSESSMENT- (1) The Panel shall submit to the Secretary an independent assessment of a variety of possible force structures of the Armed Forces through the year 2010 and beyond, including the force structure identified in the report on the review under section 923(d). The purpose of the assessment is to develop proposals for an ‘above the line’ force structure of the Armed Forces and to provide the Secretary and Congress recommendations regarding the optimal force structure to meet anticipated threats to the national security of the United States through the time covered by the assessment.

    (2) In conducting the assessment, the Panel shall examine a variety of potential threats (including near-term threats and long-term threats) to the national security interests of the United States, including the following:

      (A) Conventional threats across a spectrum of conflicts.

      (B) The proliferation of weapons of mass destruction and the means of delivering such weapons, and the illicit transfer of technology relating to such weapons.

      (C) The vulnerability of United States technology to nontraditional threats, including information warfare.

      (D) Domestic and international terrorism.

      (E) The emergence of a major potential adversary having military capabilities similar to those of the United States.

      (F) Any other significant threat, or combination of threats, identified by the Panel.

    (3) For purposes of the assessment, the Panel shall develop a variety of scenarios requiring a military response by the United States, including the following:

      (A) Scenarios developed in light of the threats examined under paragraph (2).

      (B) Scenarios developed in light of a continuum of conflicts ranging from a conflict of lesser magnitude than the conflict described in the Bottom-Up Review to a conflict of greater magnitude than the conflict so described.

    (4) As part of the assessment, the Panel shall also--

      (A) develop recommendations regarding a variety of force structures for the Armed Forces that permit the forward deployment of sufficient air, land, and sea-based forces to provide an effective deterrent to conflict and to permit a military response by the United States to the scenarios developed under paragraph (3);

      (B) to the extent practicable, estimate the funding required by fiscal year, in constant fiscal year 1997 dollars, to organize, equip, and support the forces contemplated under the force structures assessed in the assessment; and

      (C) comment on each of the matters also to be included by the Secretary in the report required by section 923(d).

    (e) REPORT- (1) Not later than December 1, 1997, the Panel shall submit to the Secretary a report setting forth the activities and the findings and recommendations of the Panel under subsection (d), including any recommendations for legislation that the Panel considers appropriate.

    (2) Not later than December 15, 1997, the Secretary shall, after consultation with the Chairman of the Joint Chiefs of Staff, submit to the committees referred to in subsection (b) a copy of the report under paragraph (1), together with the Secretary’s comments on the report.

    (f) INFORMATION FROM FEDERAL AGENCIES- The Panel may secure directly from the Department of Defense and any of its components and from any other Federal department and agency such information as the Panel considers necessary to carry out its duties under this section. The head of the department or agency concerned shall ensure that information requested by the Panel under this subsection is promptly provided.

    (g) PERSONNEL MATTERS- (1) Each member of the Panel shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Panel.

    (2) The members of the Panel shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Panel.

    (3)(A) The chairman of the Panel may, without regard to the civil service laws and regulations, appoint and terminate an executive director, and a staff of not more than four additional individuals, if the Panel determines that an executive director and staff are necessary in order for the Panel to perform its duties effectively. The employment of an executive director shall be subject to confirmation by the Panel.

    (B) The chairman may fix the compensation of the executive director without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.

    (4) Any Federal Government employee may be detailed to the Panel without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege. The Secretary shall ensure that sufficient personnel are detailed to the Panel to enable the Panel to carry out its duties effectively.

    (5) To the maximum extent practicable, the members and employees of the Panel shall travel on military aircraft, military ships, military vehicles, or other military conveyances when travel is necessary in the performance of a duty of the Panel, except that no such aircraft, ship, vehicle, or other conveyance may be scheduled primarily for the transportation of any such member or employee when the cost of commercial transportation is less expensive.

    (h) ADMINISTRATIVE PROVISIONS- (1) The Panel may use the United States mails and obtain printing and binding services in the same manner and under the same conditions as other departments and agencies of the Federal Government.

    (2) The Secretary shall furnish the Panel any administrative and support services requested by the Panel.

    (3) The Panel may accept, use, and dispose of gifts or donations of services or property.

    (i) PAYMENT OF PANEL EXPENSES- The compensation, travel expenses, and per diem allowances of members and employees of the Panel shall be paid out of funds available to the Department of Defense for the payment of compensation, travel allowances, and per diem allowances, respectively, of civilian employees of the Department. The other expenses of the Panel shall be paid out of funds available to the Department for the payment of similar expenses incurred by the Department.

    (j) TERMINATION- The Panel shall terminate 30 days after the date on which the Panel submits its report to the Secretary under subsection (e).

SEC. 925. POSTPONEMENT OF DEADLINES.

    If the Presidential election in 1996 results in the election of a new President, each deadline set forth in this subtitle shall be postponed by three months.

SEC. 926. DEFINITIONS.

    In this subtitle:

      (1) The term ‘above the line’ force structure of the Armed Forces’ means the force structure (including numbers, strengths, and composition and major items of equipment) for the Armed Forces at the following unit levels:

        (A) In the case of the Army, the division.

        (B) In the case of the Navy, the battle group.

        (C) In the case of the Air Force, the wing.

        (D) In the case of the Marine Corps, the expeditionary force.

        (E) In the case of special operations forces of the Army, Navy, or Air Force, the major operating unit.

        (F) In the case of the strategic forces, the ballistic missile submarine fleet, the heavy bomber force, and the intercontinental ballistic missile force.

      (2) The term ‘Commission on Roles and Missions of the Armed Forces’ means the Commission on Roles and Missions of the Armed Forces established by subtitle E of title IX of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1738; 10 U.S.C. 111 note).

      (3) The term ‘military operation other than war’ means any operation other than war that requires the utilization of the military capabilities of the Armed Forces, including peace operations, humanitarian assistance operations and activities, counter-terrorism operations and activities, disaster relief activities, and counter-drug operations and activities.

      (4) The term ‘peace operations’ means military operations in support of diplomatic efforts to reach long-term political settlements of conflicts and includes peacekeeping operations and peace enforcement operations.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of classified annex.

Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense appropriations.

Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal year 1996.

Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammunition accounts.

Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance Program.

Sec. 1007. Limitation on use of Department of Defense funds transferred to the Coast Guard.

Sec. 1008. Fisher House Trust Fund for the Department of the Navy.

Sec. 1009. Designation and liability of disbursing and certifying officials for the Coast Guard.

Sec. 1010. Authority to suspend or terminate collection actions against deceased members of the Coast Guard.

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

Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of contracts for phased maintenance of AE class ships.

Sec. 1022. Funding for second and third maritime prepositioning ships out of National Defense Sealift Fund.

Sec. 1023. Transfer of certain obsolete tugboats of the Navy.

Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.

Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug activities of Mexico.

Sec. 1032. Availability of funds for certain drug interdiction and counter-drug activities.

Sec. 1033. Transfer of excess personal property to support law enforcement activities.

Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufacture controlled substances.

Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced Southern Watch.

Sec. 1042. Annual report on emerging operational concepts.

Sec. 1043. Report on Department of Defense military child care programs.

Sec. 1044. Report on Department of Defense military youth programs.

Sec. 1045. Quarterly reports regarding coproduction agreements.

Sec. 1046. Report on witness interview procedures for Department of Defense criminal investigations.

Sec. 1047. Report on military readiness requirements of the Armed Forces.

Sec. 1048. Report on NATO enlargement.

Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.

Sec. 1052. Acceptance of uncompensated services.

Sec. 1053. Disposal of tract of real property in the District of Columbia.

Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure against strategic attack.

Sec. 1062. Information systems security program.

Sec. 1063. Authority to accept services from foreign governments and international organizations for defense purposes.

Sec. 1064. Prohibition on collection and release of detailed satellite imagery relating to Israel.

Sec. 1065. George C. Marshall European Center for Strategic Security Studies.

Sec. 1066. Authority to award to civilian participants in the defense of Pearl Harbor the Congressional Medal previously authorized only for military participants in the defense of Pearl Harbor.

Sec. 1067. Assimilative crimes authority for traffic offenses on military installations.

Sec. 1068. Uniform Code of Military Justice amendments.

Sec. 1069. Punishment of interstate stalking.

Sec. 1070. Participation of members, dependents, and other persons in crime prevention efforts at installations.

Sec. 1071. Display of State flags at installations and facilities of the Department of Defense.

Sec. 1072. Treatment of excess operational support airlift aircraft.

Sec. 1073. Correction to statutory references to certain Department of Defense organizations.

Sec. 1074. Technical and clerical amendments.

Sec. 1075. Modification to third-party liability to United States for tortious infliction of injury or disease on members of the uniformed services.

Sec. 1076. Chemical Stockpile Emergency Preparedness Program.

Sec. 1077. Exemption from requirements applicable to savings associations for certain savings institutions serving military personnel.

Sec. 1078. Improvements to National Security Education Program.

Sec. 1079. Aviation and vessel war risk insurance.

Sec. 1080. Designation of memorial as National D-Day Memorial.

Sec. 1081. Sense of Congress regarding semiconductor trade agreement between United States and Japan.

Sec. 1082. Agreements for exchange of defense personnel between the United States and foreign countries.

Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.

Sec. 1084. Defense burdensharing.

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) AUTHORITY TO TRANSFER AUTHORIZATIONS- (1) Upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of Defense in this division for fiscal year 1997 between any such authorizations for that fiscal year (or any subdivisions thereof). Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred.

    (2) The total amount of authorizations that the Secretary of Defense may transfer under the authority of this section may not exceed $2,000,000,000.

    (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 OF CLASSIFIED ANNEX.

    (a) STATUS OF CLASSIFIED ANNEX- The Classified Annex prepared by the committee of conference to accompany the conference report on the bill H.R. 3230 of the One Hundred Fourth Congress and transmitted to the President is hereby incorporated into this Act.

    (b) CONSTRUCTION WITH OTHER PROVISIONS OF ACT- The amounts specified in the Classified Annex are not in addition to amounts authorized to be appropriated by other provisions of this Act.

    (c) LIMITATION ON USE OF FUNDS- Funds appropriated pursuant to an authorization contained in this Act that are made available for a program, project, or activity referred to in the Classified Annex may only be expended for such program, project, or activity in accordance with such terms, conditions, limitations, restrictions, and requirements as are set out for that program, project, or activity in the Classified Annex.

    (d) DISTRIBUTION OF CLASSIFIED ANNEX- The President shall provide for appropriate distribution of the Classified Annex, or of appropriate portions of the annex, within the executive branch of the Government.

SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 1996 DEFENSE APPROPRIATIONS.

    (a) AUTHORITY- The amounts described in subsection (b) may be obligated and expended for programs, projects, and activities of the Department of Defense in accordance with fiscal year 1996 defense appropriations.

    (b) COVERED AMOUNTS- The amounts referred to in subsection (a) are the amounts provided for programs, projects, and activities of the Department of Defense in fiscal year 1996 defense appropriations that are in excess of the amounts provided for such programs, projects, and activities in fiscal year 1996 defense authorizations.

    (c) DEFINITIONS- For the purposes of this section:

      (1) FISCAL YEAR 1996 DEFENSE APPROPRIATIONS- The term ‘fiscal year 1996 defense appropriations’ means amounts appropriated or otherwise made available to the Department of Defense for fiscal year 1996 in the Department of Defense Appropriations Act, 1996 (Public Law 104-61).

      (2) FISCAL YEAR 1996 DEFENSE AUTHORIZATIONS- The term ‘fiscal year 1996 defense authorizations’ means amounts authorized to be appropriated for the Department of Defense for fiscal year 1996 in the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1996.

    Amounts authorized to be appropriated to the Department of Defense for fiscal year 1996 in the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106) are hereby adjusted, with respect to any such authorized amount, by the amount by which appropriations pursuant to such authorization were increased (by a supplemental appropriation) or decreased (by a rescission), or both, in the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134).

SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE CORPS AND AIR FORCE AMMUNITION ACCOUNTS.

    Section 114 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(f) In each budget submitted by the President to Congress under section 1105 of title 31, amounts requested for procurement of ammunition for the Navy and Marine Corps, and for procurement of ammunition for the Air Force, shall be set forth separately from other amounts requested for procurement.’.

SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

    (a) SEPARATE DISPLAY REQUIRED- The Secretary of Defense shall ensure that in the budget justification documents for any fiscal year there are set forth separately the amount requested for research, development, test, and evaluation, and the amount requested for procurement, for each program area within the Defense Airborne Reconnaissance Program.

    (b) PROGRAM AREAS WITHIN DEFENSE AIRBORNE RECONNAISSANCE PROGRAM- For purposes of subsection (a), the programs of the Defense Airborne Reconnaissance Program shall be categorized as being within one of the following areas:

      (1) Tactical unmanned aerial vehicles.

      (2) Endurance unmanned aerial vehicles.

      (3) Airborne reconnaissance systems.

      (4) Manned reconnaissance systems.

      (5) Distributed common ground systems.

      (6) Any additional program area established by the Secretary of Defense.

    (c) BUDGET JUSTIFICATION DOCUMENTS- For purposes of subsection (a), the term ‘budget justification documents’ means the supporting budget documentation submitted to the congressional defense committees in support of the budget of the Department of Defense for a fiscal year as included in the budget of the President submitted under section 1105 of title 31, United States Code, for that fiscal year.

SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS TRANSFERRED TO THE COAST GUARD.

    (a) LIMITATION TO NATIONAL SECURITY FUNCTIONS- Funds appropriated to the Department of Defense for fiscal year 1997 that are transferred pursuant to law to the Coast Guard may be used only for the performance of national security functions of the Coast Guard in support of the Department of Defense.

    (b) CERTIFICATION REQUIRED- Funds appropriated to the Department of Defense for fiscal year 1997 may not be transferred to the Coast Guard until the Secretary of Defense and the Secretary of Transportation jointly certify to Congress that the funds so transferred will be used only in accordance with the limitation in subsection (a).

    (c) PERIODIC GAO AUDITS- The Comptroller General of the United States shall--

      (1) audit, from time to time, the use of funds transferred to the Coast Guard from appropriations for the Department of Defense for fiscal year 1997 in order to verify that those funds are being used in accordance with the limitation in subsection (a); and

      (2) notify the congressional defense committees of any use of those funds that, in the judgment of the Comptroller General, is a violation of that limitation.

SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF THE NAVY.

    (a) AUTHORITY- Section 2221 of title 10, United States Code, is amended--

      (1) by adding at the end of subsection (a) the following:

      ‘(3) The Fisher House Trust Fund, Department of the Navy.’;

      (2) in subsection (c)--

        (A) by redesignating paragraph (3) as paragraph (4); and

        (B) by inserting after paragraph (2) the following new paragraph (3):

    ‘(3) Amounts in the Fisher House Trust Fund, Department of the Navy, that are attributable to earnings or gains realized from investments shall be available for the operation and maintenance of Fisher houses that are located in proximity to medical treatment facilities of the Navy.’; and

      (3) in subsection (d)(1), by striking out ‘or the Air Force’ and inserting in lieu thereof ‘, the Air Force, or the Navy’.

    (b) CORPUS OF TRUST FUNDS- The Secretary of the Navy shall transfer to the Fisher House Trust Fund, Department of the Navy, established by section 2221(a)(3) of title 10, United States Code (as added by subsection (a)(1)), all amounts in the accounts for Navy installations and other facilities that, as of the date of the enactment of this Act, are available for operation and maintenance of Fisher houses, as defined in section 2221(d) of such title.

    (c) CONFORMING AMENDMENTS- Section 1321 of title 31, United States Code, is amended--

      (1) by adding at the end of subsection (a) the following:

      ‘(94) Fisher House Trust Fund, Department of the Navy.’; and

      (2) by adding at the end of subsection (b)(2) the following:

      ‘(D) Fisher House Trust Fund, Department of the Navy.’.

SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING OFFICIALS FOR THE COAST GUARD.

    (a) DISBURSING OFFICIALS- (1) Section 3321(c) of title 31, United States Code, is amended by adding at the end the following:

      ‘(3) The Department of Transportation (with respect to public money available for expenditure by the Coast Guard when it is not operating as a service in the Navy).’.

    (2)(A) Chapter 17 of title 14, United States Code, is amended by adding at the end the following new section:

-‘Sec. 673. Designation, powers, and accountability of deputy disbursing officials

    ‘(a)(1) Subject to paragraph (3), a disbursing official of the Coast Guard may designate a deputy disbursing official--

      ‘(A) to make payments as the agent of the disbursing official;

      ‘(B) to sign checks drawn on disbursing accounts of the Secretary of the Treasury; and

      ‘(C) to carry out other duties required under law.

    ‘(2) The penalties for misconduct that apply to a disbursing official apply to a deputy disbursing official designated under this subsection.

    ‘(3) A disbursing official may make a designation under paragraph (1) only with the approval of the Secretary of Transportation (when the Coast Guard is not operating as a service in the Navy).

    ‘(b)(1) If a disbursing official of the Coast Guard dies, becomes disabled, or is separated from office, a deputy disbursing official may continue the accounts and payments in the name of the former disbursing official until the last day of the second month after the month in which the death, disability, or separation occurs. The accounts and payments shall be allowed, audited, and settled as provided by law. The Secretary of the Treasury shall honor checks signed in the name of the former disbursing official in the same way as if the former disbursing official had continued in office.

    ‘(2) The deputy disbursing official, and not the former disbursing official or the estate of the former disbursing official, is liable for the actions of the deputy disbursing official under this subsection.

    ‘(c)(1) Except as provided in paragraph (2), this section does not apply to the Coast Guard when section 2773 of title 10 applies to the Coast Guard by reason of the operation of the Coast Guard as a service in the Navy.

    ‘(2) A designation of a deputy disbursing official under subsection (a) that is made while the Coast Guard is not operating as a service in the Navy continues in effect for purposes of section 2773 of title 10 while the Coast Guard operates as a service in the Navy unless and until the designation is terminated by the disbursing official who made the designation or an official authorized to approve such a designation under subsection (a)(3) of such section.’.

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

      ‘673. Designation, powers, and accountability of deputy disbursing officials.’.

    (b) DESIGNATION OF MEMBERS OF THE ARMED FORCES TO HAVE AUTHORITY TO CERTIFY VOUCHERS- Section 3325(b) of title 31, United States Code, is amended by striking out ‘members of the armed forces under the jurisdiction of the Secretary of Defense may certify vouchers when authorized, in writing, by the Secretary to do so’ and inserting in lieu thereof ‘members of the armed forces may certify vouchers when authorized, in writing, by the Secretary of Defense or, in the case of the Coast Guard when it is not operating as a service in the Navy, by the Secretary of Transportation’.

    (c) CONFORMING AMENDMENTS- (1) Section 1007(a) of title 37, United States Code, is amended by inserting after ‘Secretary of Defense’ the following: ‘(or the Secretary of Transportation, in the case of an officer of the Coast Guard when the Coast Guard is not operating as a service in the Navy)’.

    (2) Section 3527(b)(1) of title 31, United States Code, is amended--

      (A) in subparagraph (A)(i), by inserting after ‘Department of Defense’ the following: ‘(or the Secretary of Transportation, in the case of a disbursing official of the Coast Guard when the Coast Guard is not operating as a service in the Navy)’; and

      (B) in subparagraph (B), by inserting after ‘or the Secretary of the appropriate military department’ the following: ‘(or the Secretary of Transportation, in the case of a disbursing official of the Coast Guard when the Coast Guard is not operating as a service in the Navy)’.

SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS AGAINST DECEASED MEMBERS OF THE COAST GUARD.

    Section 3711(g) of title 31, United States Code, is amended--

      (1) in paragraph (1), by striking out ‘or Marine Corps’ and inserting in lieu thereof ‘Marine Corps, or Coast Guard during a period when the Coast Guard is operating as a service in the Navy’;

      (2) by redesignating paragraph (2) as paragraph (3); and

      (3) by inserting after paragraph (1) the following new paragraph (2):

    ‘(2) The Secretary of Transportation may suspend or terminate an action by the Secretary under subsection (a) to collect a claim against the estate of a person who died while serving on active duty as a member of the Coast Guard if the Secretary determines that, under the circumstances applicable with respect to the deceased person, it is appropriate to do so.’.

SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK CASHING AND EXCHANGE TRANSACTIONS.

    Section 3342(b) of title 31, United States Code, is amended--

      (1) by striking out the period at the end of paragraph (3) and inserting in lieu thereof a semicolon;

      (2) by striking out ‘and’ at the end of paragraph (5);

      (3) by striking out the period at the end of paragraph (6) and inserting in lieu thereof ‘; or’; and

      (4) by adding at the end the following new paragraph:

      ‘(7) a Federal credit union (as defined in section 101(1) of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at the request of the Secretary of Defense is operating on a United States military installation in a foreign country, but only if that country does not permit contractor-operated military banking facilities to operate on such installations.’.

Subtitle B--Naval Vessels and Shipyards

SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY OF CONTRACTS FOR PHASED MAINTENANCE OF AE CLASS SHIPS.

    Section 1016 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed.

SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME PREPOSITIONING SHIPS OUT OF NATIONAL DEFENSE SEALIFT FUND.

    (a) NATIONAL DEFENSE SEALIFT FUND- To the extent provided in appropriations Acts, funds in the National Defense Sealift Fund may be obligated and expended for the purchase and conversion, or construction, of a total of three ships for the purpose of enhancing Marine Corps prepositioning ship squadrons.

    (b) AUTHORIZATION OF APPROPRIATIONS- Of the amount authorized to be appropriated under section 302(2), $240,000,000 is authorized to be appropriated for the purpose stated in subsection (a).

SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE NAVY.

    (a) REQUIREMENT TO TRANSFER VESSELS- The Secretary of the Navy shall transfer the six obsolete tugboats of the Navy specified in subsection (b) to the Northeast Wisconsin Railroad Transportation Commission, an instrumentality of the State of Wisconsin, if the Secretary determines that the tugboats are not needed for transfer, donation, or other disposal under title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).

    (b) VESSELS COVERED- The requirement in subsection (a) applies to the six decommissioned Cherokee class tugboats, listed as of the date of the enactment of this Act as being surplus to the Navy, that are designated

as ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160.

    (c) CONDITION RELATING TO ENVIRONMENTAL COMPLIANCE- The Secretary shall require as a condition of the transfer of a vessel under subsection (a) that use of the vessel by the Commission not commence until the terms of any necessary environmental compliance letter or agreement with respect to that vessel have been complied with.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions (including a requirement that the transfer be at no cost to the Government) in connection with the transfers required by subsection (a) as the Secretary considers appropriate.

SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO, CALIFORNIA.

    (a) TRANSFER- The Secretary of the Navy shall transfer the U.S.S. Drum (SSN-677) to the city of Vallejo, California, in accordance with this section and upon satisfactory completion of a ship donation application. Before making such transfer, the Secretary of the Navy shall remove from the vessel the reactor compartment and other classified and sensitive military equipment.

    (b) FUNDING- As provided in section 7306(c) of title 10, United States Code, the transfer of the vessel authorized by this section shall be made at no cost to the United States (beyond the cost which the United States would otherwise incur for dismantling and recycling of the vessel).

    (c) APPLICABLE LAW- The transfer under this section shall be subject to subsection (b) of section 7306 of title 10, United States Code, but the provisions of subsection (d) of such section shall not be applicable to such transfer.

SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102).

    It is the sense of Congress that the Secretary of Defense should use existing authorities in law to seek the expeditious return, upon completion of service, of the former USS LCS

102 (LSSL 102) from the Government of Thailand in order for the ship to be transferred to the United States Shipbuilding Museum in Quincy, Massachusetts.

Subtitle C--Counter-Drug Activities

SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES OF MEXICO.

    (a) AUTHORITY TO PROVIDE ADDITIONAL SUPPORT- Subject to subsection (e), during fiscal year 1997, the Secretary of Defense may provide the Government of Mexico with the support described in subsection (b) for the counter-drug activities of the Government of Mexico. The support provided under the authority of this subsection shall be in addition to support provided to the Government of Mexico under any other provision of law.

    (b) TYPES OF SUPPORT- The authority under subsection (a) is limited to the provision of the following types of support:

      (1) The transfer of nonlethal protective and utility per- sonnel equipment.

      (2) The transfer of the following nonlethal specialized equipment:

        (A) Navigation equipment.

        (B) Secure and nonsecure communications equipment.

        (C) Photo equipment.

        (D) Radar equipment.

        (E) Night vision systems.

        (F) Repair equipment and parts for equipment referred to in subparagraphs (A), (B), (C), (D), and (E).

      (3) The transfer of nonlethal components, accessories, attachments, parts (including ground support equipment), firmware, and software for aircraft or patrol boats, and related repair equipment.

      (4) The maintenance and repair of equipment of the Government of Mexico that is used for counter-drug activities.

    (c) APPLICABILITY OF OTHER SUPPORT AUTHORITIES- Except as otherwise provided in this section, the provisions of section 1004 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) shall apply to the provision of support under this section.

    (d) FUNDING- Of the amount authorized to be appropriated under section 301(19) for drug interdiction and counter-drug activities, not more than $8,000,000 shall be available for the provision of support under this section.

    (e) LIMITATIONS- (1) The Secretary may not obligate or expend funds to provide support under this section until 15 days after the date on which the Secretary submits to the committees referred to in paragraph (3) the certification described in paragraph (2).

    (2) The certification referred to in paragraph (1) is a written certification of the following:

      (A) That the provision of support under this section will not adversely affect the military preparedness of the United States Armed Forces.

      (B) That the equipment and materiel provided as support will be used only by officials and employees of the Government of Mexico who have undergone a background check by that government.

      (C) That the Government of Mexico has certified to the Secretary that--

        (i) the equipment and material provided as support will be used only by the officials and employees referred to in subparagraph (B);

        (ii) none of the equipment or materiel will be transferred (by sale, gift, or otherwise) to any person or entity not authorized by the United States to receive the equipment or materiel; and

        (iii) the equipment and materiel will be used only for the purposes intended by the United States Government.

      (D) That the Government of Mexico has implemented, to the satisfaction of the Secretary, a system that will provide an accounting and inventory of the equipment and materiel provided as support.

      (E) That the departments, agencies, and instrumentalities of the Government of Mexico will grant United States Government personnel access to any of the equipment or materiel provided as support, or to any of the records relating to such equipment or materiel, under terms and conditions similar to the terms and conditions imposed with respect to such access under section 505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).

      (F) That the Government of Mexico will provide security with respect to the equipment and materiel provided as support that is substantially the same degree of security that the United States Government would provide with respect to such equipment and materiel.

      (G) That the Government of Mexico will permit continuous observation and review by United States Government personnel of the use of the equipment and materiel provided as support under terms and conditions similar to the terms and conditions imposed with respect to such observation and review under section 505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).

    (3) The committees referred to in this paragraph are the following:

      (A) The Committee on Armed Services and the Committee on Foreign Relations of the Senate.

      (B) The Committee on National Security and the Committee on International Relations of the House of Representatives.

SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.

    (a) P-3B AIRCRAFT- Of the funds authorized to be appropriated under section 301(19) for drug interdiction and counter-drug activities, not more than $98,000,000 may be used for the purpose of procuring or modifying two P-3B aircraft for use by departments and agencies of the United States

outside the Department of Defense for drug interdiction and counter-drug activities. However, funds may not be obligated for such purpose until the Secretary of Defense submits to the congressional defense committees a certification that the procurement or modification of such aircraft and the use of such aircraft by other departments or agencies of the United States will significantly reduce the level of support that would otherwise be required of E-3 AWACS aircraft as part of the drug interdiction and counter-drug mission of the Department of Defense.

    (b) NONINTRUSIVE INSPECTION DEVICES- Of the funds authorized to be appropriated under section 301(19) for drug interdiction and counter-drug activities, not more than $10,000,000 may be used to procure three nonintrusive inspection devices for use by departments and agencies of the United States outside the Department of Defense for drug interdiction and counter-drug activities.

    (c) AUTHORITY TO TRANSFER EQUIPMENT- The Secretary of Defense may transfer to the head of any department or agency of the United States outside the Department of Defense any equipment procured or modified under this section with funds referred to in this section.

SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT LAW ENFORCEMENT ACTIVITIES.

    (a) TRANSFER AUTHORITY- (1) Chapter 153 of title 10, United States Code, is amended by inserting after section 2576 the following new section:

‘Sec. 2576a. Excess personal property: sale or donation for law enforcement activities

    ‘(a) TRANSFER AUTHORIZED- (1) Notwithstanding any other provision of law and subject to subsection (b), the Secretary of Defense may transfer to Federal and State agencies personal property of the Department of Defense, including small arms and ammunition, that the Secretary determines is--

      ‘(A) suitable for use by the agencies in law enforcement activities, including counter-drug and counter-terrorism activities; and

      ‘(B) excess to the needs of the Department of Defense.

    ‘(2) The Secretary shall carry out this section in consultation with the Attorney General and the Director of National Drug Control Policy.

    ‘(b) CONDITIONS FOR TRANSFER- The Secretary of Defense may transfer personal property under this section only if--

      ‘(1) the property is drawn from existing stocks of the Department of Defense;

      ‘(2) the recipient accepts the property on an as-is, where-is basis;

      ‘(3) the transfer is made without the expenditure of any funds available to the Department of Defense for the procurement of defense equipment; and

      ‘(4) all costs incurred subsequent to the transfer of the property are borne or reimbursed by the recipient.

    ‘(c) CONSIDERATION- Subject to subsection (b)(4), the Secretary may transfer personal property under this section without charge to the recipient agency.

    ‘(d) PREFERENCE FOR CERTAIN TRANSFERS- In considering applications for the transfer of personal property under this section, the Secretary shall give a preference to those applications indicating that the transferred property will be used in the counter-drug or counter-terrorism activities of the recipient agency.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2576 the following new item:

      ‘2576a. Excess personal property: sale or donation for law enforcement activities.’.

    (b) CONFORMING AMENDMENTS- (1) Section 1208 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 372 note) is repealed.

    (2) Section 1005 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is amended by striking out ‘section 1208 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372 note) and section 372’ and inserting in lieu thereof ‘sections 372 and 2576a’.

SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF CHEMICALS USED TO MANUFACTURE CONTROLLED SUBSTANCES.

    (a) DEA CERTIFICATION- The Controlled Substances Act is amended by inserting after section 519 (21 U.S.C. 889) the following new section:

‘SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO MANUFACTURE CONTROLLED SUBSTANCES.

    ‘A Federal department or agency may not sell from the stocks of the department or agency any chemical which, as determined by the Administrator of the Drug Enforcement Administration, could be used in the manufacture of a controlled substance unless the Administrator certifies in writing to the head of the department or agency that there is no reasonable cause to believe that the sale of the chemical would result in the illegal manufacture of a controlled substance.’.

    (b) CLERICAL AMENDMENT- The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (84 Stat. 1236) is amended by inserting after the item relating to section 519 the following new item:

      ‘Sec. 520. Review of Federal sales of chemicals usable to manufacture controlled substances.’.

Subtitle D--Reports and Studies

SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND OPERATION ENHANCED SOUTHERN WATCH.

    (a) ANNUAL REPORT- Not later than March 1 of each year, the Secretary of Defense shall submit to Congress a report on Operation Provide Comfort and Operation Enhanced Southern Watch.

    (b) MATTERS RELATING TO OPERATION PROVIDE COMFORT- Each report under subsection (a) shall include, with respect to Operation Provide Comfort, the following:

      (1) A detailed presentation of the projected costs to be incurred by the Department of Defense for that operation during the fiscal year in which the report is submitted and projected for the following fiscal year, together with a discussion of missions and functions expected to be performed by the Department as part of that operation during each of those fiscal years.

      (2) A detailed presentation of the projected costs to be incurred by other departments and agencies of the Federal Government participating in or providing support to that operation during each of those fiscal years.

      (3) A discussion of options being pursued to reduce the involvement of the Department of Defense in those aspects of that operation that are not directly related to the military mission of the Department of Defense.

      (4) A discussion of the exit strategy for United States involvement in, and support for, that operation.

      (5) A description of alternative approaches to accomplishing the mission of that operation that are designed to limit the scope and cost to the Department of Defense of accomplishing that mission while maintaining mission success.

      (6) The contributions (both in-kind and actual) by other nations to the costs of conducting that operation.

      (7) A detailed presentation of significant Iraqi military activity (including specific violations of the no-fly zone) determined to jeopardize the security of the Kurdish population in northern Iraq.

    (c) MATTERS RELATING TO OPERATION ENHANCED SOUTHERN WATCH- Each report under subsection (a) shall include, with respect to Operation Enhanced Southern Watch, the following:

      (1) The expected duration and annual costs of the various elements of that operation.

      (2) The political and military objectives associated with that operation.

      (3) The contributions (both in-kind and actual) by other nations to the costs of conducting that operation.

      (4) A description of alternative approaches to accomplishing the mission of that operation that are designed to limit the scope and cost of accomplishing that mission while maintaining mission success.

      (5) A comprehensive discussion of the political and military objectives and initiatives that the Department of Defense has pursued, and intends to pursue, in order to reduce United States involvement in that operation.

      (6) A detailed presentation of significant Iraqi military activity (including specific violations of the no-fly zone) determined to jeopardize the security of the Shiite population by air attack in southern Iraq or to jeopardize the security of Kuwait.

    (d) TERMINATION OF REPORT REQUIREMENT- The requirement under subsection (a) shall cease to apply with respect to an operation named in that subsection upon the termination of United States involvement in that operation.

    (e) DEFINITIONS- For purposes of this section:

      (1) OPERATION ENHANCED SOUTHERN WATCH- The term ‘Operation Enhanced Southern Watch’ means the operation of the Department of Defense that as of October 30, 1995, is designated as Operation Enhanced Southern Watch.

      (2) OPERATION PROVIDE COMFORT- The term ‘Operation Provide Comfort’ means the operation of the Department of Defense that as of October 30, 1995, is designated as Operation Provide Comfort.

SEC. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

    (a) REPORT REQUIRED- Not later than March 1 of each year through 2000, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on emerging operational concepts. Each such report shall be prepared by the Secretary in consultation with the Chairman of the Joint Chiefs of Staff.

    (b) MATTERS TO BE INCLUDED- Each such report shall contain a description, for the year preceding the year in which the report is submitted, of the following:

      (1) The process undertaken in the Department of Defense, and in each of the Army, Navy, Air Force, and Marine Corps, to define and develop doctrine, operational concepts, organizational concepts, and acquisition strategies to address--

        (A) the potential of emerging technologies for significantly improving the operational effectiveness of the Armed Forces;

        (B) changes in the international order that may necessitate changes in the operational capabilities of the Armed Forces;

        (C) emerging capabilities of potential adversary states; and

        (D) changes in defense budget projections.

      (2) The manner in which the processes described in paragraph (1) are harmonized to ensure that there is a sufficient consideration of the development of joint doctrine, operational concepts, and acquisition strategies.

      (3) The manner in which the processes described in paragraph (1) are coordinated through the Joint Requirements Oversight Council and reflected in the planning, programming, and budgeting process of the Department of Defense.

SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD CARE PROGRAMS.

    (a) FINDINGS- Congress makes the following findings:

      (1) The Department of Defense should be congratulated on the successful implementation of the Military Child Care Act of 1989 (originally enacted as title XV of Public Law 101-189 and subsequently codified as subchapter II of chapter 88 of title 10, United States Code).

      (2) The actions taken by the Department as a result of that Act have dramatically improved the availability, affordability, quality, and consistency of the child-care services provided to members of the Armed Forces.

      (3) Child care is important to the readiness of members of the Armed Forces since single parents and couples in military service must have access to affordable child care of good quality if they are to perform their jobs and respond effectively to long work hours or deployments.

      (4) Child care is important to the retention of members of the Armed Forces in military service because the dissatisfaction of the families of such members with military life is a primary reason for the departure of such members from military service.

    (b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN CHILD-CARE PARTNERSHIP PROGRAMS- It is the sense of Congress that--

      (1) the civilian and military child-care communities, Federal, State, and local agencies, and businesses and communities involved in the provision of child-care services could benefit from the development of partnerships to foster an exchange of ideas, information, and materials relating to their experiences with the provision of such services and to encourage closer relationships between military installations and the communities that support them;

      (2) such partnerships would be beneficial to all families by helping providers of child-care services exchange ideas about innovative ways to address barriers to the effective provision of such services; and

      (3) there are many ways that such partnerships could be developed, including--

        (A) cooperation between the directors and curriculum specialists of military child development centers and civilian child development centers in assisting such centers in the accreditation process;

        (B) use of family support staff to conduct parent and family workshops for new parents and parents with young children in family housing on military installations and in communities in the vicinity of such installations;

        (C) internships in Department of Defense child-care programs for civilian child-care providers to broaden the base of good-quality child-care services in communities in the vicinity of military installations; and

        (D) attendance by civilian child-care providers at Department child-care training classes on a space-available basis.

    (c) REPORT- Not later than June 30, 1997, the Secretary of Defense shall submit to Congress a report on the status of any partnerships and other initiatives undertaken by the Department of Defense as described in subsection (b), including recommendations for additional ways to improve the child-care programs of the Department of Defense and to improve such programs so as to benefit civilian child-care providers in communities in the vicinity of military installations.

SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH PROGRAMS.

    (a) FINDINGS- Congress makes the following findings:

      (1) Programs of the Department of Defense for youth who are dependents of members of the Armed Forces have not received the same level of attention and resources as have child-care programs of the Department since the passage of the Military Child Care Act of 1989 (originally enacted as title XV of Public Law 101-189 and subsequently codified as subchapter II of chapter 88 of title 10, United States Code).

      (2) Older children deserve as much attention to their developmental needs as do younger children.

      (3) The Department has started to direct more attention to programs for youths who are dependents of members of the Armed Forces by providing funds for the implementation of 20 model community programs to address the needs of such youths.

      (4) The lessons learned from such programs could apply to civilian youth programs as well.

    (b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN YOUTH PARTNERSHIP PROGRAMS- It is the sense of Congress that--

      (1) the Department of Defense, Federal, State, and local agencies, and businesses and communities involved in conducting youth programs could benefit from the development of partnerships to foster an exchange of ideas, information, and materials relating to such programs and to encourage closer relationships between military installations and the communities that support them;

      (2) such partnerships could be beneficial to all families by helping the providers of services for youths exchange ideas about innovative ways to address barriers to the effective provision of such services; and

      (3) there are many ways that such partnerships could be developed, including--

        (A) cooperation between the Department and Federal and State educational agencies in exploring the use of public school facilities for child-care programs and youth programs that are mutually beneficial to the Department and civilian communities and complement programs of the Department carried out at its facilities; and

        (B) improving youth programs that enable adolescents to relate to new peer groups when families of members of the Armed Forces are relocated.

    (c) REPORT- Not later than June 30, 1997, the Secretary of Defense shall submit to Congress a report on the status of any partnerships and other initiatives undertaken by the Department as described in subsection (b), including recommendations for additional ways to improve the youth programs of the Department of Defense and to improve such programs so as to benefit communities in the vicinity of military installations.

SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION AGREEMENTS.

    (a) QUARTERLY REPORTS ON COPRODUCTION AGREEMENTS- Section 36(a) of the Arms Export Control Act (22 U.S.C. 2776(a)) is amended--

      (1) by striking out ‘and’ at the end of paragraph (10);

      (2) by striking out the period at the end of paragraph (11) and inserting in lieu thereof ‘; and’; and

      (3) by inserting after paragraph (11) the following new paragraph:

      ‘(12) a report on all concluded government-to-government agreements regarding foreign coproduction of defense articles of United States origin and all other concluded agreements involving coproduction or licensed production outside of the United States of defense articles of United States origin (including coproduction memoranda of understanding or agreement) that have not been previously reported under this subsection, which shall include--

        ‘(A) the identity of the foreign countries, international organizations, or foreign firms involved;

        ‘(B) a description and the estimated value of the articles authorized to be produced, and an estimate of the quantity of the articles authorized to be produced;

        ‘(C) a description of any restrictions on third-party transfers of the foreign-manufactured articles; and

        ‘(D) if any such agreement does not provide for United States access to and verification of quantities of articles produced overseas and their disposition in the foreign country, a description of alternative measures and controls incorporated in the coproduction or licensing program to ensure compliance with restrictions in the agreement on production quantities and third-party transfers.’.

    (b) EFFECTIVE DATE- Paragraph (12) of section 36(a) of the Arms Export Control Act, as added by subsection (a)(3), does not apply with respect to an agreement described in such paragraph entered into before the date of the enactment of this Act.

SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS.

    (a) SURVEY OF MILITARY DEPARTMENT POLICIES AND PRACTICES- The Comptroller General of the United States shall conduct a survey of the policies and practices of the Naval Criminal Investigative Service with respect to the manner in which interviews of suspects and witnesses are conducted in connection with criminal investigations of allegations of contractor fraud. The purpose of the survey shall be to ascertain whether or not investigators and agents of the Naval Criminal Investigative Service conduct investigations of contractor fraud in accordance with generally accepted Federal law enforcement standards and applicable law.

    (b) REPORT- Not later than 180 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report concerning the survey under subsection (a). The report shall specifically address the following:

      (1) The extent to which investigators of the Naval Criminal Investigative Service investigators and agents of the Naval Criminal Investigative Service conduct investigations of contractor fraud in accordance with generally accepted Federal law enforcement standards and applicable law.

      (2) The extent to which the interview policies established by Department of Defense directives or Navy regulations are adequate to instruct and guide investigators in the proper conduct of subject and witness interviews.

      (3) The desirability and feasibility of providing for video and audio recording of interviews and, if recording is desirable, the circumstances under which recordings should be made.

      (4) The desirability and feasibility of making such recordings or written transcriptions of interviews, or both, available on demand to the subject or witness interviewed.

      (5) The extent to which existing Department of Defense directives and Navy regulations address the carrying and display of weapons by agents, together with an assessment of whether any change in any such directive or regulation is necessary.

      (6) The extent to which existing Department of Defense directives and Navy regulations provide guidance to agents to ensure that the agents’ conduct and demeanor is in accordance with generally accepted Federal law enforcement standards and applicable law.

      (7) Any recommendation for legislation to ensure that investigators and agents of the Naval Criminal Investigative Service use legal and proper tactics during interviews in connection with criminal investigations of allegations of contractor fraud.

SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.

    (a) REPORT REQUIRED- Not later than January 31, 1997, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the military readiness requirements of the active and reserve components of the Armed Forces, including specific combat units, combat support units, and combat service support units. Based on the assessment scenario described in subsection (c), the report shall assess such readiness requirements under a tiered readiness and response system that categorizes a given unit of the Armed Forces according to the likelihood that the unit will be required to respond to a military conflict and the time in which the unit will be required to respond.

    (b) PREPARATION OF REPORT- The Chairman of the Joint Chiefs of Staff, together with the other members of the Joint Chiefs of Staff specified in section 151(a) of title 10, United States Code, shall prepare the report required by

subsection (a). The Chairman of the Joint Chiefs of Staff shall consult with the Commander of the Special Operations Command in the preparation of the report.

    (c) ASSESSMENT SCENARIO- The report shall assess readiness requirements in a scenario based on the following assumptions:

      (1) The conflict is in a generic theater of operations located anywhere in the world and does not exceed the notional limits for a major regional conflict.

      (2) The forces available for deployment include the forces described in the Bottom-Up Review force structure, including all planned force enhancements.

      (3) Assistance is not available from allies.

    (d) ASSESSMENT ELEMENTS- The report shall identify by unit type and component, and assess the readiness requirements of, all active and reserve component units. Each such unit shall be categorized within one of the following classifications:

      (1) Forward-deployed and crisis response forces, or ‘Tier I’ forces, that possess limited internal sustainment capability and do not require immediate access to regional air bases or ports or overflight rights, including the following:

        (A) Force units that are routinely deployed forward at sea or on land outside the United States.

        (B) Combat-ready crises response forces that are capable of mobilizing and deploying within 10 days after receipt of orders.

        (C) Forces that are supported by prepositioning equipment afloat or are capable of being inserted into a theater upon the capture of a port or airfield by forcible entry forces.

      (2) Combat-ready follow-on forces, or ‘Tier II’ forces, that can be mobilized and deployed to a theater within approximately 60 days after receipt of orders.

      (3) Combat-ready conflict resolution forces, or ‘Tier III’ forces, that can be mobilized and deployed to a theater within approximately 180 days after receipt of orders.

      (4) All other active and reserve component force units which are not categorized within a classification described in paragraph (1), (2), or (3).

    (e) ADDITIONAL INFORMATION REGARDING CERTAIN UNITS- With regard to each unit that is not categorized within a classification described in paragraph (1), (2), or (3) of subsection (d), the report shall include--

      (1) a description of the mission and mobilization or deployment schedule (or both) of the unit in connection with the requirements of the assessment scenario and the combat readiness requirements of the Armed Forces; or

      (2) an identification of the unit as excess to the needs of the national military strategy and the reasons therefor.

    (f) FORM OF REPORT- The report under this section shall be submitted in unclassified form but may contain a classified annex.

SEC. 1048. REPORT ON NATO ENLARGEMENT.

    (a) REPORT- Not later than February 1, 1997, the President shall transmit to the Committee on Armed Services and the Committee on Foreign Relations of the Senate and the Committee on National Security and the Committee on International Relations of the House of Representatives a report on the enlargement of the North Atlantic Treaty Organization. The report shall contain a comprehensive discussion of the following:

      (1) Geopolitical and financial costs and benefits, including financial savings, associated with--

        (A) enlargement of the North Atlantic Treaty Organization;

        (B) further delays in the process of enlargement of the North Atlantic Treaty Organization; and

        (C) a failure to enlarge the North Atlantic Treaty Organization.

      (2) Additional North Atlantic Treaty Organization and United States military expenditures requested by prospective members of the North Atlantic Treaty Organization to facilitate their admission into the North Atlantic Treaty Organization.

      (3) Modifications necessary in the military strategy of the North Atlantic Treaty Organization and force structure required by the inclusion of new members and steps necessary to integrate new members, including the role of nuclear and conventional capabilities, reinforcement, force deployments, prepositioning of equipment, mobility, and headquarter locations.

      (4) The relationship between enlargement of the North Atlantic Treaty Organization and transatlantic stability and security.

      (5) The state of military preparedness and interoperability of Central and Eastern European nations as it relates to the responsibilities of membership of the North Atlantic Treaty Organization and additional security costs or benefits that may accrue to the United States from enlargement of the North Atlantic Treaty Organization.

      (6) The state of democracy and free market development as it affects the preparedness of Central and Eastern European nations for the responsibilities of membership of the North Atlantic Treaty Organization, including civilian control of the military, the rule of law, human rights, and parliamentary oversight.

      (7) The state of relations between prospective members of the North Atlantic Treaty Organization and their neighbors, steps taken by prospective members to reduce tensions, and mechanisms for the peaceful resolution of border disputes.

      (8) The commitment of prospective members of the North Atlantic Treaty Organization to the principles of the North Atlantic Treaty and the security of the North Atlantic area.

      (9) The effect of enlargement of the North Atlantic Treaty Organization on the political, economic, and security conditions of European Partnership for Peace nations not among the first new members of the North Atlantic Treaty Organization.

      (10) The relationship between enlargement of the North Atlantic Treaty Organization and EU enlargement and the costs and benefits of both.

      (11) The relationship between enlargement of the North Atlantic Treaty Organization and treaties relevant to United States and European security, such as the Conventional Armed Forces in Europe Treaty.

      (12) The anticipated impact both of enlargement of the North Atlantic Treaty Organization and further delays of enlargement on Russian foreign and defense policies and the costs and benefits of a security relationship between the North Atlantic Treaty Organization and Russia.

    (b) INTERPRETATION- Nothing in this section shall be interpreted or construed to affect the implementation of the NATO Participation Act of 1994 (title II of Public Law 103-447; 22 U.S.C. 1928 note), or any other program or activity which facilitates or assists prospective members of the North Atlantic Treaty Organization.

Subtitle E--Management of Armed Forces Retirement Home

SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

    (a) ADDITIONAL TERM OF OFFICE- Subsection (e) of section 1515 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 415) is amended by adding at the end the following new paragraph:

    ‘(3) The Chairman of the Retirement Home Board may appoint a member of the Retirement Home Board for a second consecutive term. The Chairman of a Local Board may appoint a member of that Local Board for a second consecutive term.’.

    (b) EARLY EXPIRATION OF TERM- (1) Subsection (f) of such section is amended to read as follows:

    ‘(f) EARLY EXPIRATION OF TERM- A member of the Armed Forces or Federal civilian employee who is appointed as a member of the Retirement Home Board or a Local Board may serve as a board member only so long as the member of the Armed Forces or Federal civilian employee is assigned to or serving in the duty position that gave rise to the appointment as a board member.’.

    (2) The amendment made by this subsection shall not affect the staggered terms of members of the Armed Forces Retirement Home Board or a Local Board of the Retirement Home under section 1515(f) of such Act, as such section is in effect before the date of the enactment of this Act.

    (c) ANNUAL EVALUATION OF DIRECTORS- Section 1517 of such Act (24 U.S.C. 417) is amended by striking out subsection (f) and inserting in lieu thereof the following:

    ‘(f) ANNUAL EVALUATION OF DIRECTORS- The Chairman of the Retirement Home Board shall annually evaluate the performance of the Directors and shall make such recommendations to the Secretary of Defense as the Chairman considers appropriate in light of the evaluation.’.

SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES.

    (a) AUTHORITY- Part A of the Armed Forces Retirement Home Act of 1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et seq.) is amended by adding at the end the following new section:

‘SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED SERVICES.

    ‘(a) AUTHORITY TO ACCEPT SERVICES- Subject to subsection (b) and notwithstanding section 1342 of title 31, United States Code, the Chairman of the Retirement Home Board or the Director of each establishment of the Retirement Home may accept from any person voluntary personal services or gratuitous services unless the acceptance of the voluntary services is disapproved by the Retirement Home Board.

    ‘(b) REQUIREMENTS AND LIMITATIONS- (1) The Chairman of the Retirement Home Board or the Director of the establishment accepting the services shall notify the person of the scope of the services accepted.

    ‘(2) The Chairman or Director shall--

      ‘(A) supervise the person providing the services to the same extent as that official would supervise a compensated employee providing similar services; and

      ‘(B) ensure that the person is licensed, privileged, has appropriate credentials, or is otherwise qualified under applicable laws or regulations to provide such services.

    ‘(3) A person providing services accepted under subsection (a) may not--

      ‘(A) serve in a policymaking position of the Retirement Home; or

      ‘(B) be compensated for the services by the Retirement Home.

    ‘(c) AUTHORITY TO RECRUIT AND TRAIN PERSONS PROVIDING SERVICES- The Chairman of the Retirement Home Board or the Director of an establishment of the Retirement Home may recruit and train persons to provide services authorized to be accepted under subsection (a).

    ‘(d) STATUS OF PERSONS PROVIDING SERVICES- (1) Subject to paragraph (3), while providing services accepted under subsection (a) or receiving training under subsection (c), a person shall be considered to be an employee of the Federal Government only for purposes of the following provisions of law:

      ‘(A) Subchapter I of chapter 81 of title 5, United States Code (relating to compensation for work-related injuries).

      ‘(B) Chapter 171 of title 28, United States Code (relating to claims for damages or loss).

    ‘(2) A person providing services accepted under subsection (a) shall be considered to be an employee of the Federal Government under paragraph (1) only with respect to services that are within the scope of the services accepted.

    ‘(3) For purposes of determining the compensation for work-related injuries payable under chapter 81 of title 5,

United States Code (pursuant to this subsection) to a person providing services accepted under subsection (a), the monthly pay of the person for such services shall be deemed to be the amount determined by multiplying--

      ‘(A) the average monthly number of hours that the person provided the services, by

      ‘(B) the minimum wage determined in accordance with section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)).

    ‘(e) REIMBURSEMENT OF INCIDENTAL EXPENSES- The Chairman of the Retirement Board or the Director of the establishment accepting services under subsection (a) may provide for reimbursement of a person for incidental expenses incurred by the person in providing the services accepted under subsection (a). The Chairman or Director shall determine which expenses qualify for reimbursement under this subsection.’.

    (b) FEDERAL STATUS OF RESIDENTS PAID FOR PART-TIME OR INTERMITTENT SERVICES- Paragraph (2) of section 1521(b) of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 421(b)) is amended to read as follows:

      ‘(2) being an employee of the United States for any purpose other than--

        ‘(A) subchapter I of chapter 81 of title 5, United States Code (relating to compensation for work-related injuries); and

        ‘(B) chapter 171 of title 28, United States Code (relating to claims for damages or loss).’.

SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF COLUMBIA.

    (a) DISPOSAL AUTHORIZED- Notwithstanding title II the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), or any other provision of law relating to the management and disposal of real property by the United States, the Armed Forces Retirement Home Board may convey, by sale or otherwise, all right, title, and interest of the United States in a parcel of real property, including improvements thereon, consisting of approximately 49 acres located in Washington, District of Columbia, east of North Capitol Street, and recorded as District Parcel 121/19.

    (b) MANNER, TERMS, AND CONDITIONS OF DISPOSAL- The Armed Forces Retirement Home Board may determine--

      (1) the manner for the disposal of the real property under subsection (a); and

      (2) the terms and conditions for the conveyance of that property, including any terms and conditions that the Board considers necessary to protect the interests of the United States.

    (c) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Armed Forces Retirement Home Board. The cost of the survey shall be borne by the party or parties to which the property is to be conveyed.

    (d) CONGRESSIONAL NOTIFICATION- (1) Before disposing of real property under subsection (a), the Armed Forces Retirement Home Board shall notify the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives of the proposed disposal. The Board may not dispose of the real property until the later of--

      (A) the date that is 60 days after the date on which the notification is received by the committees; or

      (B) the date of the next day following the expiration of the first period of 30 days of continuous session of Congress that follows the date on which the notification is received by the committees.

    (2) For the purposes of paragraph (1)--

      (A) continuity of session is broken only by an adjournment of Congress sine die; and

      (B) the days on which either House is not in session because of an adjournment of more than three days to a day certain are excluded in the computation of any period of time in which Congress is in continuous session.

Subtitle F--Other Matters

SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION INFRASTRUCTURE AGAINST STRATEGIC ATTACK.

    (a) REPORT REQUIREMENT- Not later than 180 days after the date of the enactment of this Act, the President shall submit to Congress a report setting forth a national policy on protecting the national information infrastructure against strategic attack.

    (b) MATTERS TO BE INCLUDED- The policy described in the report shall include the following:

      (1) Plans to meet essential Government and civilian needs during a national security emergency associated with a strategic attack on elements of the national information infrastructure the functioning of which depend on networked computer systems.

      (2) The identification of information infrastructure functions that must be performed during such an emergency.

      (3) The assignment of responsibilities to Federal departments and agencies, and a description of the roles of Government and industry, relating to indications and warning of, assessment of, response to, and reconstitution after, potential strategic attacks on the elements of the national information infrastructure described under paragraph (1).

    (c) UNRESOLVED ISSUES- The report shall also identify--

      (1) matters relating to the national policy described in the report that, as of the submission of the report, are in need of further study and resolution, such as technology and funding shortfalls; and

      (2) legal and regulatory considerations relating to the national policy.

    (d) UPDATE OF EARLIER REPORT- The report shall include an update of the report required to be submitted to

Congress pursuant to section 1053 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 440).

SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

    (a) ALLOCATION- Of the amounts appropriated for the Department of Defense for the Defense Information Infrastructure for each of fiscal years 1999 through 2002, the Secretary of Defense shall allocate to the information systems security program (program element 0303140K) amounts as follows:

      (1) For fiscal year 1999, 2.5 percent.

      (2) For fiscal year 2000, 3.0 percent.

      (3) For fiscal year 2001, 3.5 percent.

      (4) For fiscal year 2002, 4.0 percent.

    (b) RELATIONSHIP TO OTHER AMOUNTS- Amounts allocated under subsection (a) are in addition to amounts appropriated to the National Security Agency and the Defense Advanced Research Projects Agency for development of information security systems, acquisition of information security systems, and operation of information security systems.

    (c) REPORT- Not later than November 15, 1997, the Secretary of Defense shall submit to the congressional defense committees and the congressional intelligence committees a report on information security activities of the Department of Defense. The report shall describe--

      (1) the objectives of the Secretary with respect to information security and the strategy of the Secretary (including the strategy with respect to funding) during fiscal years 1999 through 2002 to achieve those objectives;

      (2) how the Secretary intends to manage and allocate the funds required by subsection (a) to be allocated to the information systems security program; and

      (3) if the Secretary determines that a funding plan for the information systems security program for fiscal years 1999 through 2002 other than that specified in subsection (a) is appropriate, the alternative funding plan proposed by the Secretary.

    (d) DEFENSE INFORMATION INFRASTRUCTURE- For purposes of this section, the Defense Information Infrastructure is the web of communications networks, computers, software, databases, applications, data security services, and other capabilities that meets the information processing and transport needs of Department of Defense users.

SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN GOVERNMENTS AND INTERNATIONAL ORGANIZATIONS FOR DEFENSE PURPOSES.

    Section 2608(a) of title 10, United States Code, is amended by inserting before the period at the end the following: ‘and may accept from any foreign government or international organization any contribution of services made by such foreign government or international organization for use by the Department of Defense’.

SEC. 1064. PROHIBITION ON COLLECTION AND RELEASE OF DETAILED SATELLITE IMAGERY RELATING TO ISRAEL.

    (a) COLLECTION AND DISSEMINATION- A department or agency of the United States may issue a license for the collection or dissemination by a non-Federal entity of satellite imagery with respect to Israel only if such imagery is no more detailed or precise than satellite imagery of Israel that is available from commercial sources.

    (b) DECLASSIFICATION AND RELEASE- A department or agency of the United States may declassify or otherwise release satellite imagery with respect to Israel only if such imagery is no more detailed or precise than satellite imagery of Israel that is available from commercial sources.

SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY STUDIES.

    (a) AUTHORITY TO ACCEPT FOREIGN GIFTS AND DONATIONS- (1) The Secretary of Defense may, on behalf of the George C. Marshall European Center for Strategic Security Studies (in this section referred to as the ‘Marshall Center’), accept foreign gifts or donations in order to defray the costs of, or enhance the operation of, the Marshall Center.

    (2) Funds received by the Secretary under paragraph (1) shall be credited to appropriations available for the Department of Defense for the Marshall Center. Funds so credited shall be merged with the appropriations to which credited and shall be available for the Marshall Center for the same purposes and same period as the appropriations with which merged.

    (3) The Secretary of Defense shall notify Congress if the total amount of money accepted under paragraph (1) exceeds $2,000,000 in any fiscal year. Any such notice shall list each of the contributors of such amounts and the amount of each contribution in such fiscal year.

    (4) For purposes of this subsection, a foreign gift or donation is a gift or donation of funds, materials (including research materials), property, or services (including lecture services and faculty services) from a foreign government, a foundation or other charitable organization in a foreign country, or an individual in a foreign country.

    (b) MARSHALL CENTER PARTICIPATION BY FOREIGN NATIONS- (1) Notwithstanding any other provision of law, the Secretary of Defense may authorize participation by a European or Eurasian nation in Marshall Center programs if the Secretary determines, after consultation with the Secretary of State, that such participation is in the national interest of the United States.

    (2) Not later than January 31 of each year, the Secretary of Defense shall submit to Congress a report setting forth the names of the foreign nations permitted to participate in programs of the Marshall Center during the preceding year under paragraph (1). Each such report shall be prepared by the Secretary with the assistance of the Director of the Marshall Center.

    (c) EXEMPTIONS FOR MEMBERS OF MARSHALL CENTER BOARD OF VISITORS FROM CERTAIN REQUIREMENTS- (1) In the case of any person invited to serve without compensation on the Marshall Center Board of Visitors, the Secretary of Defense may waive any requirement for financial disclosure that

would otherwise apply to that person solely by reason of service on such Board.

    (2) Notwithstanding any other provision of law, a member of the Marshall Center Board of Visitors may not be required to register as an agent of a foreign government solely by reason of service as a member of the Board.

    (3) Notwithstanding section 219 of title 18, United States Code, a non-United States citizen may serve on the Marshall Center Board of Visitors even though registered as a foreign agent.

SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR THE CONGRESSIONAL MEDAL PREVIOUSLY AUTHORIZED ONLY FOR MILITARY PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR.

    (a) AUTHORITY- The Speaker of the House of Representatives and the President pro tempore of the Senate are authorized jointly to present, on behalf of Congress, a bronze medal provided for under section 1492 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1721) to any person who meets the eligibility requirements set forth in subsection (d) of that section other than the requirement for membership in the Armed Forces, as certified under subsection (e) of that section or under subsection (b) of this section.

    (b) CERTIFICATION- The Secretary of Defense shall, not later than 12 months after the date of the enactment of this Act, certify to the Speaker of the House of Representatives and the President pro tempore of the Senate the names of persons who are eligible for award of the medal under this Act and have not previously been certified under section 1492(e) of the National Defense Authorization Act for Fiscal Year 1991.

    (c) APPLICATIONS- Subsections (d)(2) and (f) of section 1492 of the National Defense Authorization Act for Fiscal Year 1991 shall apply in the administration of this section.

    (d) ADDITIONAL STRIKING AUTHORITY- The Secretary of the Treasury shall strike such additional medals as may be necessary for presentation under the authority of subsection (a).

    (e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated such sum as may be necessary to carry out this section.

    (f) RETROACTIVE EFFECTIVE DATE- The authority under subsection (a) shall be effective as of November 5, 1990.

SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES ON MILITARY INSTALLATIONS.

    Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is amended--

      (1) by striking out ‘Whoever shall violate’ and inserting in lieu thereof ‘(a) Except as provided in subsection (b), whoever violates’;

      (2) by inserting ‘than’ after ‘not more’; and

      (3) by adding at the end the following:

    ‘(b)(1) Whoever violates any military traffic regulation shall be fined an amount not to exceed the amount of the maximum fine for a like or similar offense under the criminal or civil law of the State, territory, possession, or district where the military installation in which the violation occurred is located, or imprisoned for not more than 30 days, or both.

    ‘(2) For purposes of this subsection, the term ‘military traffic regulation’ means a rule or regulation for the control of vehicular or pedestrian traffic on military installations that is promulgated by the Secretary of Defense, or the designee of the Secretary, under the authority delegated pursuant to section 2.’.

SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

    (a) TECHNICAL AMENDMENT REGARDING FORFEITURES DURING CONFINEMENT ADJUDGED BY A COURT-MARTIAL- (1) Section 858b(a)(1) of title 10, United States Code (article 58b(a)(1) of the Uniform Code of Military Justice), is amended--

      (A) in the first sentence, by inserting ‘(if adjudged by a general court-martial)’ after ‘all pay and’; and

      (B) in the third sentence, by striking out ‘two-thirds of all pay and allowances’ and inserting in lieu thereof ‘two-thirds of all pay’.

    (2) The amendments made by paragraph (1) shall take effect as of April 1, 1996, and shall apply to any case in which a sentence is adjudged by a court-martial on or after that date.

    (b) EXCEPTED SERVICE APPOINTMENTS TO CERTAIN NONATTORNEY POSITIONS OF THE UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES- (1) Subsection (c) of section 943 of title 10, United States Code (article 143(c) of the Uniform Code of Military Justice) is amended in paragraph (1) by inserting after the first sentence the following: ‘A position of employment under the Court that is provided primarily for the service of one judge of the court, reports directly to the judge, and is a position of a confidential character is excepted from the competitive service.’.

    (2) The caption for such subsection is amended by striking out ‘ATTORNEY’ and inserting in lieu thereof ‘CERTAIN’.

    (c) REPEAL OF 13-YEAR SPECIAL LIMIT ON TERM OF TRANSITIONAL JUDGE OF UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES- (1) Subsection (d)(2) of section 1301 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1575; 10 U.S.C. 942 note) is amended by striking out ‘to the judges who are first appointed to the two new positions of the court created as of October 1, 1990--’ and all that follows and inserting in lieu thereof ‘to the judge who is first appointed to one of the two new positions of the court created as of October 1, 1990, as designated by the President at the time of appointment, the anniversary referred to in subparagraph (A) of that paragraph shall be treated as being the seventh anniversary and the number of years referred to in subparagraph (B) of that paragraph shall be treated as being seven.’.

    (2) Subsection (e)(1) of such section is amended by striking out ‘each judge’ and inserting in lieu thereof ‘a judge’.

SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

    (a) IN GENERAL- Chapter 110A of title 18, United States Code, is amended by inserting after section 2261 the following new section:

‘Sec. 2261A. Interstate stalking

    ‘Whoever travels across a State line or within the special maritime and territorial jurisdiction of the United States with the intent to injure or harass another person, and in the course of, or as a result of, such travel places that person in reasonable fear of the death of, or serious bodily injury (as defined in section 1365(g)(3) of this title) to, that person or a member of that person’s immediate family (as defined in section 115 of this title) shall be punished as provided in section 2261 of this title.’.

    (b) CONFORMING AMENDMENTS- Title 18, United States Code, is amended as follows:

      (1) Section 2261(b) is amended by inserting ‘or section 2261A’ after ‘this section’.

      (2) Sections 2261(b) and 2262(b) are each amended by striking ‘offender’s spouse or intimate partner’ each place it appears and inserting ‘victim’.

      (3) The chapter heading for chapter 110A is amended by inserting ‘AND STALKING’ after ‘VIOLENCE’.

      (4) The item relating to chapter 110A in the table of chapters at the beginning of part I is amended to read as follows:

2261’.

    (c) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 110A of such title is amended by inserting after the item relating to section 2261 the following new item:

      ‘2261A. Interstate stalking.’.

SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER PERSONS IN CRIME PREVENTION EFFORTS AT INSTALLATIONS.

    (a) CRIME PREVENTION PLAN- The Secretary of Defense shall prepare and implement an incentive-based plan to encourage members of the Armed Forces, dependents of members, civilian employees of the Department of Defense, and employees of defense contractors performing work at military installations to report to an appropriate military law enforcement agency any crime or criminal activity that the person reasonably believes occurred on a military installation or involves a member of the Armed Forces.

    (b) INCENTIVES TO REPORT CRIMINAL ACTIVITY- The Secretary of Defense shall include in the plan developed under subsection (a) incentives for members and other persons described in such subsection to provide information to appropriate military law enforcement agencies regarding any crime or criminal activity occurring on a military installation or involving a member of the Armed Forces.

    (c) REPORT REGARDING IMPLEMENTATION- Not later than February 1, 1997, the Secretary shall submit to Congress a report describing the plan being developed under subsection (a).

SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF THE DEPARTMENT OF DEFENSE.

    (a) IN GENERAL- Subchapter I of chapter 134 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2249b. Display of State flags: prohibition on use of funds to arbitrarily exclude flag; position and manner of display

    ‘(a) PROHIBITION ON USE OF FUNDS- Funds available to the Department of Defense may not be used to prescribe or enforce any rule that arbitrarily excludes the official flag of any State, territory, or possession of the United States from any display of the flags of the States, territories, and possessions of the United States at an official ceremony of the Department of Defense.

    ‘(b) POSITION AND MANNER OF DISPLAY- The display of an official flag of a State, territory, or possession of the United States at an installation or other facility of the Department shall be governed by the provisions of section 3 of the Joint Resolution of June 22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and any modification of such provisions under section 8 of that Joint Resolution (36 U.S.C. 178).’.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter I of such chapter is amended by adding at the end the following new item:

      ‘2249b. Display of State flags: prohibition on use of funds to arbitrarily exclude flag; position and manner of display.’.

SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

    (a) REUTILIZATION OR SALE BEFORE TRANSFER- An operational support airlift aircraft that is excess to the requirements of the United States shall be placed in an inactive status and stored at Davis-Monthan Air Force Base, Arizona, only upon the determination of the Secretary of Defense that all reasonable efforts for the reutilization of the aircraft by, or sale of the aircraft to, Federal agencies or other persons have been completed. The Secretary shall ensure that attempts to reutilize or sell the entire aircraft are given precedence over any reutilization or sale of individual parts or components of the aircraft.

    (b) OPERATIONAL SUPPORT AIRLIFT AIRCRAFT DEFINED- In this section, the term ‘operational support airlift aircraft’ has the meaning given such term in section 1086(f) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 458).

SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN DEPARTMENT OF DEFENSE ORGANIZATIONS.

    (a) NORTH AMERICAN AEROSPACE DEFENSE COMMAND- Section 162(a) of title 10, United States Code, is amended by striking out ‘North American Air Defense Command’ in paragraphs (1), (2), and (3) and inserting in lieu thereof ‘North American Aerospace Defense Command’.

    (b) FORMER NAVAL RECORDS AND HISTORY OFFICE AND FUND- (1) Section 7222 of title 10, United States Code, is amended by striking out ‘Office of Naval Records and

History’ each place it appears in subsections (a) and (c) and inserting in lieu thereof ‘Naval Historical Center’.

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

‘Sec. 7222. Naval Historical Center Fund’.

    (B) The item relating to such section in the table of sections at the beginning of chapter 631 of title 10, United States Code, is amended to read as follows:

      ‘7222. Naval Historical Center Fund.’.

    (3) Section 2055(g) of the Internal Revenue Code of 1986 is amended by striking out paragraph (4) and inserting in lieu thereof the following:

‘(4) For treatment of gifts and bequests for the benefit of the Naval Historical Center as gifts or bequests to or for the use of the United States, see section 7222 of title 10, United States Code.’.

    (c) DEFENSE DISTRIBUTION CENTER, ANNISTON- The Corporation for the Promotion of Rifle Practice and Firearms Safety Act (title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 et seq.) is amended by striking out ‘Anniston Army Depot’ each place it appears in the following provisions and inserting in lieu thereof ‘Defense Distribution Depot, Anniston’:

      (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).

      (2) Section 1616(b) (36 U.S.C. 5506(b)).

      (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).

    (d) CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSIONS- Section 172 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2341; 50 U.S.C. 1521 note) is amended by striking out ‘Assistant Secretary of the Army (Installations, Logistics, and Environment)’ in subsections (b) and (f) and inserting in lieu thereof ‘Assistant Secretary of the Army (Research, Development and Acquisition)’.

    (e) DEFENSE ADVANCED RESEARCH PROJECTS AGENCY- (1) Each of the following provisions of law is amended by inserting ‘Defense’ before ‘Advanced Research Projects Agency’ each place it appears:

      (A) Section 5316 of title 5, United States Code.

      (B) Subsections (b), (f), and (i) of section 2371 of title 10, United States Code.

      (C) Section 822(c)(1)(D) of Public Law 101-510 (42 U.S.C. 6686).

      (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371 note).

      (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431 note).

      (F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law 103-160 (10 U.S.C. 2501 note).

    (2) The section headings of each of the following sections are amended by inserting ‘defense’ before ‘advanced’:

      (A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 note).

      (B) Sections 1353 and 1354 of Public Law 103-160 (10 U.S.C. 2501 note).

    (3) The heading for subsection (a) of section 1354 of Public Law 103-160 (10 U.S.C. 2501 note) is amended by striking out ‘ARPA’ and inserting in lieu thereof ‘DARPA’.

SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED STATES CODE- Title 10, United States Code, is amended as follows:

      (1) Section 129(a) is amended by striking out ‘the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996’ and inserting in lieu thereof ‘February 10, 1996,’.

      (2) Section 401 is amended--

        (A) in subsection (a)(4), by striking out ‘Armed Forces’ both places it appears and inserting in lieu thereof ‘armed forces’; and

        (B) in subsection (e), by inserting ‘any of the following’ after ‘means’.

      (3) Section 528(b) is amended by striking out ‘(1)’ after ‘(b)’ and inserting ‘(1)’ before ‘The limitation’.

      (4) Section 1078a(a) is amended by striking out ‘Beginning on October 1, 1994, the’ and inserting in lieu thereof ‘The’.

      (5) Section 1161(b)(2) is amended by striking out ‘section 1178’ and inserting in lieu thereof ‘section 1167’.

      (6) Section 1167 is amended by striking out ‘person’ and inserting in lieu thereof ‘member’.

      (7) The table of sections at the beginning of chapter 81 is amended by striking out ‘Sec.’ in the item relating to section 1599a.

      (8) Section 1588(d)(1)(C) is amended by striking out ‘Section 522a’ and inserting in lieu thereof ‘Section 552a’.

      (9) Chapter 87 is amended--

        (A) in section 1723(a), by striking out the second sentence;

        (B) in section 1724--

          (i) in subsection (a), by striking out ‘small purchase threshold’ and inserting in lieu thereof ‘simplified acquisition threshold’; and

          (ii) in subsections (a) and (b), by striking out ‘, beginning on October 1, 1993,’;

        (C) in section 1733(a), by striking out ‘On and after October 1, 1993, a’ and inserting in lieu thereof ‘A’; and

        (D) in section 1734--

          (i) in subsection (a)(1), by striking out ‘, on and after October 1, 1993,’; and

          (ii) in subsection (b)(1)(A), by striking out ‘, on and after October 1, 1991,’.

      (10) Section 2216, as added by section 371 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 107 Stat. 277), is redesignated as section 2216a, and the item relating to that section in the

table of sections at the beginning of chapter 131 is revised so as to reflect such redesignation.

      (11) Section 2305(b)(6) is amended--

        (A) in subparagraph (B), by striking out ‘of this section’ and ‘of this paragraph’;

        (B) in subparagraph (C), by striking out ‘this subsection’ and inserting in lieu thereof ‘subparagraph (A)’; and

        (C) in subparagraph (D), by striking out ‘pursuant to this subsection’ and inserting in lieu thereof ‘under subparagraph (A)’.

      (12) Section 2306a(h)(3) is amended by inserting ‘(41 U.S.C. 403(12))’ before the period at the end.

      (13) Section 2323a(a) is amended by striking out ‘section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)’ and inserting in lieu thereof ‘section 2323 of this title’.

      (14) Section 2534(c)(4) is amended by striking out ‘the date occurring two years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996’ and inserting in lieu thereof ‘February 10, 1998’.

      (15) The table of sections at the beginning of chapter 155 is amended by striking out the item relating to section 2609.

      (16) Section 2610(e) is amended by striking out ‘two years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996’ and inserting in lieu thereof ‘on February 10, 1998’.

      (17) Sections 2824(c) and 2826(i)(1) are amended by striking out ‘the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996’ and inserting in lieu thereof ‘February 10, 1996’.

      (18) Section 3036(d)(3) is amended by striking out ‘For purposes of this subsection,’ and inserting in lieu thereof ‘In this subsection,’.

      (19) The table of sections at the beginning of chapter 641 is amended by striking out the item relating to section 7434.

      (20) Section 7863 is amended by inserting ‘were’ in the first sentence after ‘the stores’.

      (21) Section 10542(b)(21) is amended by striking out ‘261’ and inserting in lieu thereof ‘12001’.

      (22) Section 12205(a) is amended by striking out ‘After September 30, 1995, no person’ and inserting in lieu thereof ‘No person’.

    (b) AMENDMENTS TO PUBLIC LAW 104-106- The National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 186 et seq.) is amended as follows:

      (1) Section 561(d)(1) (110 Stat. 322) is amended by inserting ‘of such title’ after ‘Section 1405(c)’.

      (2) Section 1092(b)(2) (110 Stat. 460) is amended by striking out the period at the end and inserting in lieu thereof ‘; and’.

      (3) Section 4301(a)(1) (110 Stat. 656) is amended by inserting ‘of subsection (a)’ after ‘in paragraph (2)’.

      (4) Section 5601 (110 Stat. 699) is amended--

        (A) in subsection (a), by inserting ‘of title 10, United States Code,’ before ‘is amended’; and

        (B) in subsection (c), by striking out ‘use of equipment or services if,’ in the second quoted matter therein and inserting in lieu thereof ‘use of the equipment or services’.

      (5) Section 3403 (110 Stat. 631) is amended by striking out ‘Act of Fiscal’ and inserting in lieu thereof ‘Act for Fiscal’.

      (6) Section 4202(c)(1) (110 Stat. 653) is amended, effective as of February 10, 1996, by striking out ‘purchases of’ in the first quoted matter therein and inserting in lieu thereof ‘contracts for’.

      (7) Section 5607(c) (110 Stat. 701) is amended, effective as of February 10, 1996--

        (A) by striking out ‘303B(h)’ and by inserting in lieu thereof ‘303B(k)’; and

        (B) by striking out ‘253b(h)’ and by inserting in lieu thereof ‘253b(k)’.

    (c) PROVISIONS EXECUTED BEFORE ENACTMENT OF PUBLIC LAW 104-106-

      (1) Section 533(b) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 315) shall apply as if enacted as of December 31, 1995.

      (2) The authority provided under section 942(f) of title 10, United States Code, shall be effective as if section 1142 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 467) had been enacted on September 29, 1995.

    (d) AMENDMENTS TO OTHER ACTS-

      (1) The last section of the Office of Federal Procurement Policy Act (41 U.S.C. 434), as added by section 5202 of Public Law 104-106 (110 Stat. 690), is redesignated as section 38, and the item appearing after section 34 in the table of contents in the first section of that Act is transferred to the end of such table of contents and revised so as to reflect such redesignation.

      (2) Section 1412(g)(2) of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended--

        (A) in the matter preceding subparagraph (A), by striking out ‘shall contain--’ and inserting in lieu thereof ‘shall include the following:’;

        (B) in subparagraph (A)--

          (i) by striking out ‘a’ before ‘site-by-site’ and inserting in lieu thereof ‘A’; and

          (ii) by striking out the semicolon at the end and inserting in lieu thereof a period; and

        (C) in subparagraphs (B) and (C), by striking out ‘an’ at the beginning of the subparagraph and inserting in lieu thereof ‘An’.

      (3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 100 Stat. 3207-91) is amended in clause (v) of subsection (a)(1)(A) by striking out ‘and (c)’ both places it appears.

    (e) COORDINATION WITH OTHER AMENDMENTS- For purposes of applying amendments made by provisions of this Act other than provisions of this section, this section shall be treated as having been enacted immediately before the other provisions of this Act.

    (f) AMENDMENTS TO THE OFFICE OF FEDERAL PROCUREMENT POLICY ACT- The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended as follows:

      (1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking out ‘the policies set forth in section 2 or’.

      (2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking out the second sentence.

      (3) Section 25 (41 U.S.C. 421) is amended--

        (A) in subsection (c)--

          (i) in paragraph (3), by striking out ‘the policies set forth in section 2 of this Act or’; and

          (ii) in paragraph (5), by striking out ‘or the policies set forth in section 2 of this Act’; and

        (B) in subsection (e), by striking out ‘the policies of section 2 and’.

SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED STATES FOR TORTIOUS INFLICTION OF INJURY OR DISEASE ON MEMBERS OF THE UNIFORMED SERVICES.

    (a) RECOVERY OF PAY AND ALLOWANCES- The first section of Public Law 87-693 (42 U.S.C. 2651) is amended--

      (1) in the first sentence of subsection (a)--

        (A) by inserting ‘or pay for’ after ‘required by law to furnish’; and

        (B) by striking out ‘or to be furnished’ both places it appears and inserting in lieu thereof ‘, to be furnished, paid for, or to be paid for’;

      (2) by redesignating subsections (b) and (c) as subsections (d) and (e), respectively;

      (3) by inserting after subsection (a), the following new subsections:

    ‘(b) If a member of the uniformed services is injured, or contracts a disease, under circumstances creating a tort liability upon a third person (other than or in addition to the United States and except employers of seamen referred to in subsection (a)) for damages for such injury or disease and the member is unable to perform the member’s regular military duties as a result of the injury or disease, the United States shall have a right (independent of the rights of the member) to recover from the third person or an insurer of the third person, or both, the amount equal to the total amount of the pay that accrues and is to accrue to the member for the period for which the member is unable to perform such duties as a result of the injury or disease and is not assigned to perform other military duties.

    ‘(c)(1) If, pursuant to the laws of a State that are applicable in a case of a member of the uniformed services who is injured or contracts a disease as a result of tortious conduct of a third person, there is in effect for such a case (as a substitute or alternative for compensation for damages through tort liability) a system of compensation or reimbursement for expenses of hospital, medical, surgical, or dental care and treatment or for lost pay pursuant to a policy of insurance, contract, medical or hospital service agreement, or similar arrangement, the United States shall be deemed to be a third-party beneficiary of such a policy, contract, agreement, or arrangement.

    ‘(2) For the purposes of paragraph (1)--

      ‘(A) the expenses incurred or to be incurred by the United States for care and treatment for an injured or diseased member as described in subsection (a) shall be deemed to have been incurred by the member;

      ‘(B) the cost to the United States of the pay of the member as described in subsection (b) shall be deemed to have been pay lost by the member as a result of the injury or disease; and

      ‘(C) the United States shall be subrogated to any right or claim that the injured or diseased member or the member’s guardian, personal representative, estate, dependents, or survivors have under a policy, contract, agreement, or arrangement referred to in paragraph (1) to the extent of the reasonable value of the care and treatment and the total amount of the pay deemed lost under subparagraph (B).’;

      (4) in subsection (d), as redesignated by paragraph (2), by inserting ‘or paid for’ after ‘treatment is furnished’; and

      (5) by adding at the end the following:

    ‘(f)(1) Any amount recovered under this section for medical care and related services furnished by a military medical treatment facility or similar military activity shall be credited to the appropriation or appropriations supporting the operation of that facility or activity, as determined under regulations prescribed by the Secretary of Defense.

    ‘(2) Any amount recovered under this section for the cost to the United States of pay of an injured or diseased member of the uniformed services shall be credited to the appropriation that supports the operation of the command, activity, or other unit to which the member was assigned at the time of the injury or illness, as determined under regulations prescribed by the Secretary concerned.

    ‘(g) For the purposes of this section:

      ‘(1) The term ‘uniformed services’ has the meaning given such term in section 101 of title 10, United States Code.

      ‘(2) The term ‘tortious conduct’ includes any tortious omission.

      ‘(3) The term ‘pay’, with respect to a member of the uniformed services, means basic pay, special pay, and incentive pay that the member is authorized to receive under

title 37, United States Code, or any other law providing pay for service in the uniformed services.

      ‘(4) The term ‘Secretary concerned’ means--

        ‘(A) the Secretary of Defense, with respect to the Army, the Navy, the Air Force, the Marine Corps, and the Coast Guard (when it is operating as a service in the Navy);

        ‘(B) the Secretary of Transportation, with respect to the Coast Guard when it is not operating as a service in the Navy;

        ‘(C) the Secretary of Health and Human Services, with respect to the commissioned corps of the Public Health Service; and

        ‘(D) the Secretary of Commerce, with respect to the commissioned corps of the National Oceanic and Atmospheric Administration.’.

    (b) CONFORMING AMENDMENTS- The first section of Public Law 87-693 (42 U.S.C. 2651) is amended--

      (1) in the first sentence of subsection (a)--

        (A) by inserting ‘(independent of the rights of the injured or diseased person)’ after ‘a right to recover’; and

        (B) by inserting ‘, or that person’s insurer,’ after ‘from said third person’;

      (2) in subsection (d), as redesignated by subsection (a)(2)--

        (A) by striking out ‘such right,’ and inserting in lieu thereof ‘a right under subsections (a), (b), and (c)’; and

        (B) by inserting ‘or the insurance carrier or other entity responsible for the payment or reimbursement of medical expenses or lost pay’ after ‘the third person who is liable for the injury or disease’ each place it appears.

    (c) EFFECTIVE DATE- The authority to collect pursuant to the amendments made by this section shall apply to expenses described in the first section of Public Law 87-693 (as amended by this section) that are incurred, or are to be incurred, by the United States on or after the date of the enactment of this Act, whether the event from which the claim arises occurs before, on, or after that date.

SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) REPORT- Not later than 120 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report assessing the implementation and success of the establishment of site-specific Integrated Product and Process Teams as a management tool for the Chemical Stockpile Emergency Preparedness Program.

    (b) CONTINGENT MANDATED REFORMS- If at the end of the 120-day period beginning on the date of the enactment of this Act the Secretary of the Army and the Director of the Federal Emergency Management Agency have been unsuccessful in implementing a site-specific Integrated Product and Process Team with each of the affected States, the Secretary of the Army shall--

      (1) assume full control and responsibility for the Chemical Stockpile Emergency Preparedness Program (eliminating the role of the Director of the Federal Emergency Management Agency as joint manager of the program);

      (2) establish programmatic agreement with each of the affected States regarding program requirements, implementation schedules, training and exercise requirements, and funding (to include direct grants for program support);

      (3) clearly define the goals of the program; and

      (4) establish fiscal constraints for the program.

SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO SAVINGS ASSOCIATIONS FOR CERTAIN SAVINGS INSTITUTIONS SERVING MILITARY PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners’ Loan Act (12 U.S.C. 1467a(m)(3)(F)) is amended--

      (1) in the subparagraph caption, by striking out ‘ASSOCIATION SERVING TRANSIENT’ and inserting in lieu thereof ‘ASSOCIATIONS SERVING CERTAIN’;

      (2) by striking out ‘company if--’ and all that follows through ‘90 percent’ and inserting in lieu thereof ‘company if at least 90 percent’; and

      (3) by striking out ‘officers’ both places it appears and inserting in lieu thereof ‘members’.

SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION PROGRAM.

    (a) TEMPORARY REQUIREMENT RELATING TO EMPLOYMENT- Title VII of the Department of Defense Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 650), is amended in the paragraph under the heading ‘NATIONAL SECURITY EDUCATION TRUST FUND’ by striking out the proviso.

    (b) GENERAL PROGRAM REQUIREMENTS- (1) Subparagraph (A) of subsection (a)(1) of section 802 of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is amended to read as follows:

        ‘(A) awarding scholarships to undergraduate students who--

          ‘(i) are United States citizens in order to enable such students to study, for at least one academic semester or equivalent term, in foreign countries that are critical countries (as determined under section 803(d)(4)(A)) in those languages and study areas where deficiencies exist (as identified in the assessments undertaken pursuant to section 806(d)); and

          ‘(ii) pursuant to subsection (b)(2)(A), enter into an agreement to work in a national security position or work in the field of higher education in the area of study for which the scholarship was awarded;’; and

    (2) Subparagraph (B) of that subsection is amended--

      (A) in clause (i), by inserting ‘relating to the national security interests of the United States’ after ‘international fields’; and

      (B) in clause (ii)--

        (i) by striking out ‘subsection (b)(2)’ and inserting in lieu thereof ‘subsection (b)(2)(B)’; and

        (ii) by striking out ‘work for an agency or office of the Federal Government or in’ and inserting in lieu thereof ‘work in a national security position or work in’.

    (c) SERVICE AGREEMENT- (1) Subsection (b) of that section is amended in the matter preceding paragraph (1) by striking out ‘, or of scholarships’ and all that follows through ‘12 months or more,’ and inserting in lieu thereof ‘or any scholarship’.

    (2) Paragraph (2) of that subsection is amended to read as follows:

      ‘(2) will--

        ‘(A) not later than eight years after such recipient’s completion of the study for which scholarship assistance was provided under the program, and in accordance with regulations issued by the Secretary--

          ‘(i) work in a national security position for a period specified by the Secretary, which period shall be no longer than the period for which scholarship assistance was provided; or

          ‘(ii) if the recipient demonstrates to the Secretary (in accordance with such regulations) that no national security position is available, work in the field of higher education in a discipline relating to the foreign country, foreign language, area study, or international field of study for which the scholarship was awarded, for a period specified by the Secretary, which period shall be determined in accordance with clause (i); or

        ‘(B) upon completion of such recipient’s education under the program, and in accordance with such regulations--

          ‘(i) work in a national security position for a period specified by the Secretary, which period shall be not less than one and not more than three times the period for which the fellowship assistance was provided; or

          ‘(ii) if the recipient demonstrates to the Secretary (in accordance with such regulations) that no national security position is available upon the completion of the degree, work in the field of higher education in a discipline relating to the foreign country, foreign language, area study, or international field of study for which the fellowship was awarded, for a period specified by the Secretary, which period shall be established in accordance with clause (i); and’.

    (d) EVALUATION OF PROGRESS IN LANGUAGE SKILLS- Such section is further amended--

      (1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and

      (2) by inserting after subsection (b) the following new subsection (c):

    ‘(c) EVALUATION OF PROGRESS IN LANGUAGE SKILLS- The Secretary shall, through the National Security Education Program office, administer a test of the foreign language skills of each recipient of a scholarship or fellowship under this title before the commencement of the study or education for which the scholarship or fellowship is awarded and after the completion of such study or education. The purpose of these tests is to evaluate the progress made by recipients of scholarships and fellowships in developing foreign language skills as a result of assistance under this title.’.

    (e) FUNCTIONS OF THE NATIONAL SECURITY EDUCATION BOARD- Section 803(d) of that Act (50 U.S.C. 1903(d)) is amended--

      (1) in paragraph (1), by inserting ‘, including an order of priority in such awards that favors individuals expressing an interest in national security issues or pursuing a career in a national security position’ before the period;

      (2) in paragraph (4)--

        (A) in the matter preceding subparagraph (A), by striking out ‘Make recommendations’ and inserting in lieu thereof ‘After taking into account the annual analyses of trends in language, international, and area studies under section 806(b)(1), make recommendations’;

        (B) in subparagraph (A), by inserting ‘and countries which are of importance to the national security interests of the United States’ after ‘are studying’; and

        (C) in subparagraph (B), by inserting ‘relating to the national security interests of the United States’ after ‘section 802(a)(1)(B)’;

      (3) by redesignating paragraph (5) as paragraph (8); and

      (4) by inserting after paragraph (4) the following new paragraphs:

      ‘(5) Encourage applications for fellowships under this title from graduate students having an educational background in any academic discipline, particularly in the areas of science or technology.

      ‘(6) Provide the Secretary biennially with a list of scholarship recipients and fellowship recipients, including an assessment of their foreign area and language skills, who are available to work in a national security position.

      ‘(7) Not later than 30 days after a scholarship or fellowship recipient completes the study or education for which assistance was provided under the program, provide the Secretary with a report fully describing the foreign area and language skills obtained by the recipient as a result of the assistance.’.

    (f) NATIONAL SECURITY POSITION DEFINED- (1) Section 808 of that Act (50 U.S.C. 1908) is amended by adding at the end the following new paragraph:

      ‘(4) The term ‘national security position’ means a position--

        ‘(A) having national security responsibilities in a agency or office of the Federal Government that has national security responsibilities, as determined under section 802(g); and

        ‘(B) in which the individual in such position makes their foreign language skills available to such agency or office.’.

    (2) Section 802 of that Act (50 U.S.C. 1902), as amended by subsection (d)(1) of this section, is further amended by adding at the end the following new subsection:

    ‘(g) DETERMINATION OF AGENCIES AND OFFICES OF THE FEDERAL GOVERNMENT HAVING NATIONAL SECURITY RESPONSIBILITIES- (1) The Secretary, in consultation with the Board, shall annually determine and develop a list identifying each agency or office of the Federal Government having national security responsibilities at which a recipient of a fellowship or scholarship under this title will be able to make the recipient’s foreign area and language skills available to such agency or office. The Secretary shall submit the first such list to the Congress and include each subsequent list in the annual report to the Congress, as required by section 806(b)(6).

    ‘(2) Notwithstanding section 804, funds may not be made available from the Fund to carry out this title for fiscal year 1997 until 30 days after the date on which the Secretary of Defense submits to the Congress the first such list required by paragraph (1).’.

    (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended by striking out ‘and’ at the end of paragraph (5), redesignating paragraph (6) as paragraph (7), and inserting after paragraph (5) the following new paragraph (6):

      ‘(6) the current list of agencies and offices of the Federal Government required to be developed by section 802(g); and’.

    (g) REPORT ON PROGRAM- (1) Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report assessing the improvements to the program established under the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 et seq.) that result from the amendments made by this section.

    (2) The report shall include an assessment of the contribution of the program, as so improved, in meeting the national security objectives of the United States.

SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

    (a) AVIATION RISK INSURANCE- (1) Chapter 931 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 9514. Indemnification of Department of Transportation for losses covered by defense-related aviation insurance

    ‘(a) PROMPT INDEMNIFICATION REQUIRED- (1) In the event of a loss that is covered by defense-related aviation insurance, the Secretary of Defense shall promptly indemnify the Secretary of Transportation for the amount of the loss consistent with the indemnification agreement between the two Secretaries that underlies such insurance. The Secretary of Defense shall make such indemnification--

      ‘(A) in the case of a claim for the loss of an aircraft hull, not later than 30 days after the date on which the Secretary of Transportation determines the claim to be payable or that amounts are due under the policy that provided the defense-related aviation insurance; and

      ‘(B) in the case of any other claim, not later than 180 days after the date on which the Secretary of Transportation determines the claim to be payable.

    ‘(2) When there is a loss of an aircraft hull that is (or may be) covered by defense-related aviation insurance, the Secretary of Transportation may make, during the period when a claim for such loss is pending with the Secretary of Transportation, any required periodic payments owed by the insured party to a lessor or mortgagee of such aircraft. Such payments shall commence not later than 30 days following the date of the presentment of the claim for the loss of the aircraft hull to the Secretary of Transportation. If the Secretary of Transportation determines that the claim is payable, any amount paid under this paragraph arising from such claim shall be credited against the amount payable under the aviation insurance. If the Secretary of Transportation determines that the claim is not payable, any amount paid under this paragraph arising from such claim shall constitute a debt to the United States, payable to the insurance fund. Any such amounts so returned to the United States shall be promptly credited to the fund or account from which the payments were made under this paragraph.

    ‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY- The Secretary of Defense may pay an indemnity described in subsection (a) from any funds available to the Department of Defense for operation and maintenance, and such sums as may be necessary for payment of such indemnity are hereby authorized to be transferred to the Secretary of Transportation for such purpose.

    ‘(c) NOTICE TO CONGRESS- In the event of a loss that is covered by defense-related aviation insurance in the case of an incident in which the covered loss is (or is expected to be) in an amount in excess of $1,000,000, the Secretary of Defense shall submit to Congress--

      ‘(1) notification of the loss as soon after the occurrence of the loss as possible and in no event more than 30 days after the date of the loss; and

      ‘(2) semiannual reports thereafter updating the information submitted under paragraph (1) and showing with respect to losses arising from such incident the total amount expended to cover such losses, the source of those

funds, pending litigation, and estimated total cost to the Government.

    ‘(d) IMPLEMENTING MATTERS- (1) Payment of indemnification under this section is not subject to section 2214 or 2215 of this title or any other provision of law requiring notification to Congress before funds may be transferred.

    ‘(2) Consolidation of claims arising from the same incident is not required before indemnification of the Secretary of Transportation for payment of a claim may be made under this section.

    ‘(e) CONSTRUCTION WITH OTHER TRANSFER AUTHORITY- Authority to transfer funds under this section is in addition to any other authority provided by law to transfer funds (whether enacted before, on, or after the date of the enactment of this section) and is not subject to any dollar limitation or notification requirement contained in any other such authority to transfer funds.

    ‘(f) ANNUAL REPORT ON CONTINGENT LIABILITIES- Not later than March 1 of each year, the Secretary of Defense shall submit to Congress a report setting forth the current amount of the contingent outstanding liability of the United States under the insurance program under chapter 443 of title 49.

    ‘(g) DEFINITIONS- In this section:

      ‘(1) DEFENSE-RELATED AVIATION INSURANCE- The term ‘defense-related aviation insurance’ means aviation insurance and reinsurance provided through policies issued by the Secretary of Transportation under chapter 443 of title 49 that pursuant to section 44305(b) of that title is provided by that Secretary without premium at the request of the Secretary of Defense and is covered by an indemnity agreement between the Secretary of Transportation and the Secretary of Defense.

      ‘(2) LOSS- The term ‘loss’ includes damage to or destruction of property, personal injury or death, and other liabilities and expenses covered by the defense-related aviation insurance.’.

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

      ‘9514. Indemnification of Department of Transportation for losses covered by defense-related aviation insurance.’.

    (b) VESSEL WAR RISK INSURANCE- (1) Chapter 157 of title 10, United States Code, is amended by adding after section 2644, as redesignated by section 906, the following new section:

‘Sec. 2645. Indemnification of Department of Transportation for losses covered by vessel war risk insurance

    ‘(a) PROMPT INDEMNIFICATION REQUIRED- (1) In the event of a loss that is covered by vessel war risk insurance, the Secretary of Defense shall promptly indemnify the Secretary of Transportation for the amount of the loss consistent with the indemnification agreement between the two Secretaries that underlies such insurance. The Secretary of Defense shall make such indemnification--

      ‘(A) in the case of a claim for the loss of a vessel, not later than 90 days after the date on which the Secretary of Transportation determines the claim to be payable or that amounts are due under the policy that provided the vessel war risk insurance; and

      ‘(B) in the case of any other claim, not later than 180 days after the date on which on which the Secretary of Transportation determines the claim to be payable.

    ‘(2) When there is a loss of a vessel that is (or may be) covered by vessel war risk insurance, the Secretary of Transportation may make, during the period when a claim for such loss is pending with the Secretary of Transportation, any required periodic payments owed by the insured party to a lessor or mortgagee of such vessel. Such payments shall commence not later than 30 days following the date of the presentment of the claim for the loss of the vessel to the Secretary of Transportation. If the Secretary of Transportation determines that the claim is payable, any amount paid under this paragraph arising from such claim shall be credited against the amount payable under the vessel war risk insurance. If the Secretary of Transportation determines that the claim is not payable, any amount paid under this paragraph arising from such claim shall constitute a debt to the United States, payable to the insurance fund. Any such amounts so returned to the United States shall be promptly credited to the fund or account from which the payments were made under this paragraph.

    ‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY- The Secretary of Defense may pay an indemnity described in subsection (a) from any funds available to the Department of Defense for operation and maintenance, and such sums as may be necessary for payment of such indemnity are hereby authorized to be transferred to the Secretary of Transportation for such purpose.

    ‘(c) DEPOSIT OF FUNDS- Any amount transferred to the Secretary of Transportation under this section shall be deposited in, and merged with amounts in, the Vessel War Risk Insurance Fund as provided in the second sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1288(a)).

    ‘(d) NOTICE TO CONGRESS- In the event of a loss that is covered by vessel war risk insurance in the case of an incident in which the covered loss is (or is expected to be) in an amount in excess of $1,000,000, the Secretary of Defense shall submit to Congress--

      ‘(1) notification of the loss as soon after the occurrence of the loss as possible and in no event more than 30 days after the date of the loss; and

      ‘(2) semiannual reports thereafter updating the information submitted under paragraph (1) and showing with respect to losses arising from such incident the total amount expended to cover such losses, the source of such funds, pending litigation, and estimated total cost to the Government.

    ‘(e) IMPLEMENTING MATTERS- (1) Payment of indemnification under this section is not subject to section 2214 or

2215 of this title or any other provision of law requiring notification to Congress before funds may be transferred.

    ‘(2) Consolidation of claims arising from the same incident is not required before indemnification of the Secretary of Transportation for payment of a claim may be made under this section.

    ‘(f) CONSTRUCTION WITH OTHER TRANSFER AUTHORITY- Authority to transfer funds under this section is in addition to any other authority provided by law to transfer funds (whether enacted before, on, or after the date of the enactment of this section) and is not subject to any dollar limitation or notification requirement contained in any other such authority to transfer funds.

    ‘(g) ANNUAL REPORT ON CONTINGENT LIABILITIES- Not later than March 1 of each year, the Secretary of Defense shall submit to Congress a report setting forth the current amount of the contingent outstanding liability of the United States under the vessel war risk insurance program under title XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et seq.).

    ‘(h) DEFINITIONS- In this section:

      ‘(1) VESSEL WAR RISK INSURANCE- The term ‘vessel war risk insurance’ means insurance and reinsurance provided through policies issued by the Secretary of Transportation under title XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et seq.), that is provided by that Secretary without premium at the request of the Secretary of Defense and is covered by an indemnity agreement between the Secretary of Transportation and the Secretary of Defense.

      ‘(2) VESSEL WAR RISK INSURANCE FUND- The term ‘Vessel War Risk Insurance Fund’ means the insurance fund referred to in the first sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1288(a)).

      ‘(3) LOSS- The term ‘loss’ includes damage to or destruction of property, personal injury or death, and other liabilities and expenses covered by the vessel war risk insurance.’.

    (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 2644, as added by section 906, the following new item:

      ‘2645. Indemnification of Department of Transportation for losses covered by vessel war risk insurance.’.

SEC. 1080. DESIGNATION OF MEMORIAL AS NATIONAL D-DAY MEMORIAL.

    (a) DESIGNATION- The memorial to be constructed by the National D-Day Memorial Foundation in Bedford, Virginia, is hereby designated as a national memorial to be known as the ‘National D-Day Memorial’. The memorial shall serve to honor the members of the Armed Forces of the United States who served in the liberation of Normandy, France, in June 1944.

    (b) PUBLIC PROCLAMATION- The President is requested and urged to issue a public proclamation acknowledging the designation of the memorial to be constructed by the National D-Day Memorial Foundation in Bedford, Virginia, as the National D-Day Memorial.

    (c) MAINTENANCE OF MEMORIAL- All expenses for maintenance and care of the memorial shall be paid for with non-Federal funds, including funds provided by the National D-Day Memorial Foundation. The United States shall not be liable for any expense incurred for the maintenance and care of the memorial.

SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE AGREEMENT BETWEEN UNITED STATES AND JAPAN.

    (a) FINDINGS- Congress makes the following findings:

      (1) The United States and Japan share a long and important bilateral relationship which serves as an anchor of peace and stability in the Asia Pacific region, an alliance which was reaffirmed at the recent summit meeting between President Clinton and Prime Minister Hashimoto in Tokyo.

      (2) The Japanese economy has experienced difficulty over the past few years, demonstrating that it is no longer possible for Japan, the world’s second largest economy, to use exports as the sole engine of economic growth, but that the Government of Japan must promote deregulation of its domestic economy in order to increase economic growth.

      (3) Deregulation of the Japanese economy requires government attention to the removal of barriers to imports of manufactured goods.

      (4) The United States-Japan Semiconductor Trade Agreement has begun the process of deregulation in the semiconductor sector and is opening the Japanese market to competitive foreign products.

      (5) The United States-Japan Semiconductor Trade Agreement has put in place both government-to-government and industry-to-industry mechanisms which have played a vital role in allowing cooperation to replace conflict in this important high technology sector.

      (6) The mechanisms include joint calculation of foreign market share, deterrence of dumping, and promotion of industrial cooperation in the design of foreign semiconductor devices.

      (7) Because of these actions under the United States-Japan Semiconductor Trade Agreement, the United States and Japan today enjoy trade in semiconductors which is mutually beneficial, harmonious, and free from the friction that once characterized the semiconductor industry.

      (8) Because of structural barriers in Japan, a gap still remains between the share of the world market for semiconductor products outside Japan that the United States and other foreign semiconductor sources are able to capture through competitiveness and the share of the Japanese semiconductor market that the United States and those other sources are able to capture through competitiveness, and that gap is consistent across the full range of semiconductor products as well as a full range of end-use applications.

      (9) The competitiveness and health of the United States semiconductor industry is of critical importance to the overall economic well-being and high-technology defense capabilities of the United States.

      (10) The economic interests of both the United States and Japan are best served by well functioning, open markets, deterrence of dumping, and continuing good cooperative relationships in all sectors, including semiconductors.

      (11) A strong and healthy military and political alliance between the United States and Japan requires continuation of the industrial and economic cooperation promoted by the United States-Japan Semiconductor Trade Agreement.

      (12) President Clinton has called on the Government of Japan to agree to a continuation of the United States-Japan Semiconductor Trade Agreement beyond the current agreement’s expiration on July 31, 1996.

      (13) The Government of Japan has opposed any continuation of the United States-Japan Semiconductor Trade Agreement to promote cooperation in United States-Japan semiconductor trade.

    (b) SENSE OF CONGRESS- On the basis of the findings contained in subsection (a), it is the sense of Congress that--

      (1) it is regrettable that the Government of Japan has refused to consider continuation of the United States-Japan Semiconductor Trade Agreement to ensure that cooperation continues in the semiconductor sector beyond the expiration of the agreement on July 31, 1996; and

      (2) the President should take all necessary and appropriate actions to ensure the resumption and extension of the United States-Japan Semiconductor Trade Agreement beyond July 31, 1996.

    (c) DEFINITION- For purposes of this section, the term ‘United States-Japan Semiconductor Trade Agreement’ refers to the agreement between the United States and Japan concerning trade in semiconductor products, with arrangement, done by exchange of letters at Washington on June 11, 1991.

SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL BETWEEN THE UNITED STATES AND FOREIGN COUNTRIES.

    (a) AUTHORITY TO ENTER INTO INTERNATIONAL EXCHANGE AGREEMENTS- (1) The Secretary of Defense may enter into international defense personnel exchange agreements.

    (2) For purposes of this section, an international defense personnel exchange agreement is an agreement with the government of an ally of the United States or another friendly foreign country for the exchange of--

      (A) military and civilian personnel of the Department of Defense; and

      (B) military and civilian personnel of the defense ministry of that foreign government.

    (b) ASSIGNMENT OF PERSONNEL- (1) Pursuant to an international defense personnel exchange agreement, personnel of the defense ministry of a foreign government may be assigned to positions in the Department of Defense and personnel of the Department of Defense may be assigned to positions in the defense ministry of such foreign government. Positions to which exchanged personnel are assigned may include positions of instructors.

    (2) An agreement for the exchange of personnel engaged in research and development activities may provide for assignment of Department of Defense personnel to positions in private industry that support the defense ministry of the host foreign government.

    (3) An individual may not be assigned to a position pursuant to an international defense personnel exchange agreement unless the assignment is acceptable to both governments.

    (c) RECIPROCITY OF PERSONNEL QUALIFICATIONS REQUIRED- Each government shall be required under an international defense personnel exchange agreement to provide personnel with qualifications, training, and skills that are essentially equal to those of the personnel provided by the other government.

    (d) PAYMENT OF PERSONNEL COSTS- (1) Each government shall pay the salary, per diem, cost of living, travel costs, cost of language or other training, and other costs for its own personnel in accordance with the applicable laws and regulations of such government.

    (2) Paragraph (1) does not apply to the following costs:

      (A) The cost of temporary duty directed by the host government.

      (B) The cost of training programs conducted to familiarize, orient, or certify exchanged personnel regarding unique aspects of the assignments of the exchanged personnel.

      (C) Costs incident to the use of the facilities of the host government in the performance of assigned duties.

    (e) PROHIBITED CONDITIONS- No personnel exchanged pursuant to an agreement under this section may take or be required to take an oath of allegiance to the host country or to hold an official capacity in the government of such country.

    (f) RELATIONSHIP TO OTHER AUTHORITY- The requirements in subsections (c) and (d) shall apply in the exercise of any authority of the Secretaries of the military departments to enter into an agreement with the government of a foreign country to provide for the exchange of members of the armed forces and military personnel of the foreign country. The Secretary of Defense may prescribe regulations for the application of such subsections in the exercise of such authority.

SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

    It is the sense of the Senate that, notwithstanding any other provision of law, in order to maximize the amount of equipment provided to the Government of Bosnia and Herzegovina under the authority contained in section 540 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 737), the price of the transferred equipment shall not exceed the lowest level at which the same or similar equipment

has been transferred to any other country under any other United States Government program.

SEC. 1084. DEFENSE BURDENSHARING.

    (a) EFFORTS TO INCREASE ALLIED BURDENSHARING- The President shall seek to have each nation that has cooperative military relations with the United States (including security agreements, basing arrangements, or mutual participation in multinational military organizations or operations) take one or more of the following actions:

      (1) Increase its financial contributions to the payment of the nonpersonnel costs incurred by the United States Government for stationing United States military personnel in that nation, with a goal of achieving by September 30, 2000, 75 percent of such costs. An increase in financial contributions by any nation under this paragraph may include the elimination of taxes, fees, or other charges levied on United States military personnel, equipment, or facilities stationed in that nation.

      (2) Increase its annual budgetary outlays for national defense as a percentage of its gross domestic product by 10 percent or at least to a level commensurate to that of the United States by September 30, 1997.

      (3) Increase its annual budgetary outlays for foreign assistance (to promote democratization, economic stabilization, transparency arrangements, defense economic conversion, respect for the rule of law, and internationally recognized human rights) by 10 percent or at least to a level commensurate to that of the United States by September 30, 1997.

      (4) Increase the amount of military assets (including personnel, equipment, logistics, support and other resources) that it contributes, or would be prepared to contribute, to multinational military activities worldwide.

    (b) AUTHORITIES TO ENCOURAGE ACTIONS BY UNITED STATES ALLIES- In seeking the actions described in subsection (a) with respect to any nation, or in response to a failure by any nation to undertake one or more of such actions, the President may take any of the following measures to the extent otherwise authorized by law:

      (1) Reduce the end strength level of members of the Armed Forces assigned to permanent duty ashore in that nation.

      (2) Impose on that nation fees or other charges similar to those that such nation imposes on United States forces stationed in that nation.

      (3) Reduce (through rescission, impoundment, or other appropriate procedures as authorized by law) the amount the United States contributes to the NATO Civil Budget, Military Budget, or Security Investment Program.

      (4) Suspend, modify, or terminate any bilateral security agreement the United States has with that nation, consistent with the terms of such agreement.

      (5) Reduce (through rescission, impoundment, or other appropriate procedures as authorized by law) any United States bilateral assistance appropriated for that nation.

      (6) Take any other action the President determines to be appropriate as authorized by law.

    (c) REPORT ON PROGRESS IN INCREASING ALLIED BURDENSHARING- Not later than March 1, 1997, the Secretary of Defense shall submit to Congress a report on--

      (1) steps taken by other nations to complete the actions described in subsection (a);

      (2) all measures taken by the President, including those authorized in subsection (b), to achieve the actions described in subsection (a); and

      (3) the budgetary savings to the United States that are expected to accrue as a result of the steps described under paragraph (1).

    (d) REPORT ON NATIONAL SECURITY BASES FOR FORWARD DEPLOYMENT AND BURDENSHARING RELATIONSHIPS- (1) In order to ensure the best allocation of budgetary resources, the President shall undertake a review of the status of elements of the United States Armed Forces that are permanently stationed outside the United States. The review shall include an assessment of the following:

      (A) The alliance requirements that are to be found in agreements between the United States and other countries.

      (B) The national security interests that support permanently stationing elements of the United States Armed Forces outside the United States.

      (C) The stationing costs associated with the forward deployment of elements of the United States Armed Forces.

      (D) The alternatives available to forward deployment (such as material prepositioning, enhanced airlift and sealift, or joint training operations) to meet such alliance requirements or national security interests, with such alternatives identified and described in detail.

      (E) The costs and force structure configurations associated with such alternatives to forward deployment.

      (F) The financial contributions that allies of the United States make to common defense efforts (to promote democratization, economic stabilization, transparency arrangements, defense economic conversion, respect for the rule of law, and internationally recognized human rights).

      (G) The contributions that allies of the United States make to meeting the stationing costs associated with the forward deployment of elements of the United States Armed Forces.

      (H) The annual expenditures of the United States and its allies on national defense, and the relative percentages of each nation’s gross domestic product constituted by those expenditures.

    (2) The President shall submit to Congress a report on the review under paragraph (1). The report shall be submitted not later than March 1, 1997, in classified and unclassified form.

    (e) REPORT DATE- Section 1003(c) of Public Law 98-515 is amended by striking out ‘each year’ and inserting ‘by March 1, 1998, and every other year thereafter’.

TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

      Sec. 1101. Short title.

      Sec. 1102. Findings.

      Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation of certain intelligence officials.

Subtitle A--Establishment of Agency

      Sec. 1111. Establishment.

      Sec. 1112. Missions and authority.

      Sec. 1113. Transfers of personnel and assets.

      Sec. 1114. Compatibility with authority under the National Security Act of 1947.

      Sec. 1115. Creditable civilian service for career conditional employees of the Defense Mapping Agency.

      Sec. 1116. Saving provisions.

      Sec. 1117. Definitions.

      Sec. 1118. Authorization of appropriations.

Subtitle B--Conforming Amendments and Effective Dates

      Sec. 1121. Redesignation and repeals.

      Sec. 1122. Reference amendments.

      Sec. 1123. Headings and clerical amendments.

      Sec. 1124. Effective date.

SEC. 1101. SHORT TITLE.

    This title may be cited as the ‘National Imagery and Mapping Agency Act of 1996’.

SEC. 1102. FINDINGS.

    Congress makes the following findings:

      (1) There is a need within the Department of Defense and the Intelligence Community of the United States to provide a single agency focus for the growing number and diverse types of customers for imagery and geospatial information resources within the Government, to ensure visibility and accountability for those resources, and to harness, leverage, and focus rapid technological developments to serve the imagery, imagery intelligence, and geospatial information customers.

      (2) There is a need for a single Government agency to solicit and advocate the needs of that growing and diverse pool of customers.

      (3) A single combat support agency dedicated to imagery, imagery intelligence, and geospatial information could act as a focal point for support of all imagery intelligence and geospatial information customers, including customers in the Department of Defense, the Intelligence Community, and related agencies outside of the Department of Defense.

      (4) Such an agency would best serve the needs of the imagery, imagery intelligence, and geospatial information customers if it were organized--

        (A) to carry out its mission responsibilities under the authority, direction, and control of the Secretary of Defense, with the advice of the Chairman of the Joint Chiefs of Staff; and

        (B) to carry out its responsibilities to national intelligence customers in accordance with policies and priorities established by the Director of Central Intelligence.

SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

    (a) IN GENERAL- Section 201 of title 10, United States Code, is amended to read as follows:

-‘Sec. 201. Certain intelligence officials: consultation and concurrence regarding appointments; evaluation of performance

    ‘(a) CONSULTATION REGARDING APPOINTMENT- Before submitting a recommendation to the President regarding the appointment of an individual to the position of Director of the Defense Intelligence Agency, the Secretary of Defense shall consult with the Director of Central Intelligence regarding the recommendation.

    ‘(b) CONCURRENCE IN APPOINTMENT- (1) Before submitting a recommendation to the President regarding the appointment of an individual to a position referred to in paragraph (2), the Secretary of Defense shall seek the concurrence of the Director of Central Intelligence in the recommendation. If the Director does not concur in the recommendation, the Secretary may make the recommendation to the President without the Director’s concurrence, but shall include in the recommendation a statement that the Director does not concur in the recommendation.

    ‘(2) Paragraph (1) applies to the following positions:

      ‘(A) The Director of the National Security Agency.

      ‘(B) The Director of the National Reconnaissance Office.

      ‘(C) The Director of the National Imagery and Mapping Agency.

    ‘(c) PERFORMANCE EVALUATIONS- (1) The Director of Central Intelligence shall provide annually to the Secretary of Defense, for the Secretary’s consideration, an evaluation of the performance of the individuals holding the positions referred to in paragraph (2) in fulfilling their respective responsibilities with regard to the National Foreign Intelligence Program.

    ‘(2) The positions referred to in paragraph (1) are the following:

      ‘(A) The Director of the National Security Agency.

      ‘(B) The Director of the National Reconnaissance Office.

      ‘(C) The Director of the National Imagery and Mapping Agency.’.

    (b) CLERICAL AMENDMENT- The item relating to section 201 in the table of sections at the beginning of subchapter II of chapter 8 of such title is amended to read as follows:

      ‘201. Certain intelligence officials: consultation and concurrence regarding appointments; evaluation of performance.’.

Subtitle A--Establishment of Agency

SEC. 1111. ESTABLISHMENT.

    (a) ESTABLISHMENT- There is hereby established in the Department of Defense a Defense Agency to be known as the National Imagery and Mapping Agency.

    (b) TRANSFER OF FUNCTIONS FROM DEPARTMENT OF DEFENSE ENTITIES- The missions and functions of the following elements of the Department of Defense are transferred to the National Imagery and Mapping Agency:

      (1) The Defense Mapping Agency.

      (2) The Central Imagery Office.

      (3) Other elements of the Department of Defense as specified in the classified annex to this Act.

    (c) TRANSFER OF FUNCTIONS FROM CENTRAL INTELLIGENCE AGENCY- The missions and functions of the following elements of the Central Intelligence Agency are transferred to the National Imagery and Mapping Agency:

      (1) The National Photographic Interpretation Center.

      (2) Other elements of the Central Intelligence Agency as specified in the classified annex to this Act.

    (d) PRESERVATION OF LEVEL AND QUALITY OF IMAGERY INTELLIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION- In managing the establishment of the National Imagery and Mapping Agency, the Secretary of Defense, in consultation with the Director of Central Intelligence, shall ensure that imagery intelligence support provided to all-source analysis and production is in no way degraded or compromised.

SEC. 1112. MISSIONS AND AUTHORITY.

    (a) AGENCY CHARTER- Part I of subtitle A of title 10, United States Code, is amended--

      (1) by redesignating chapter 22 as chapter 23; and

      (2) by inserting after chapter 21 the following new chapter 22:

‘CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

‘Subchapter

--Sec.

441

451

461

467

‘SUBCHAPTER I--MISSIONS AND AUTHORITY

‘Sec.

      ‘441. Establishment.

      ‘442. Missions.

      ‘443. Imagery intelligence and geospatial information: support for foreign countries.

      ‘444. Support from Central Intelligence Agency.

      ‘445. Protection of agency identifications and organizational information.

‘Sec. 441. Establishment

    ‘(a) ESTABLISHMENT- The National Imagery and Mapping Agency is a combat support agency of the Department of Defense and has significant national missions.

    ‘(b) DIRECTOR- (1) The Director of the National Imagery and Mapping Agency is the head of the agency.

    ‘(2) Upon a vacancy in the position of Director, the Secretary of Defense shall recommend to the President an individual for appointment to the position.

    ‘(3) If an officer of the armed forces on active duty is appointed to the position of Director, the position shall be treated as having been designated by the President as a position of importance and responsibility for purposes of section 601 of this title and shall carry the grade of lieutenant general, or, in the case of an officer of the Navy, vice admiral.

    ‘(c) DIRECTOR OF CENTRAL INTELLIGENCE COLLECTION TASKING AUTHORITY- Unless otherwise directed by the President, the Director of Central Intelligence shall have authority (except as otherwise agreed by the Director and the Secretary of Defense) to--

      ‘(1) approve collection requirements levied on national imagery collection assets;

      ‘(2) determine priorities for such requirements; and

      ‘(3) resolve conflicts in such priorities.

    ‘(d) AVAILABILITY AND CONTINUED IMPROVEMENT OF IMAGERY INTELLIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION FUNCTION- The Secretary of Defense, in consultation with the Director of Central Intelligence, shall take all necessary steps to ensure the full availability and continued improvement of imagery intelligence support for all-source analysis and production.

‘Sec. 442. Missions

    ‘(a) NATIONAL SECURITY MISSIONS- (1) The National Imagery and Mapping Agency shall, in support of the national security objectives of the United States, provide the following:

      ‘(A) Imagery.

      ‘(B) Imagery intelligence.

      ‘(C) Geospatial information.

    ‘(2) Imagery, intelligence, and information provided in carrying out paragraph (1) shall be timely, relevant, and accurate.

    ‘(b) NAVIGATION INFORMATION- The National Imagery and Mapping Agency shall improve means of navigating vessels of the Navy and the merchant marine by providing, under the authority of the Secretary of Defense, accurate and inexpensive nautical charts, sailing directions, books on navigation, and manuals of instructions for the use of all vessels of the United States and of navigators generally.

    ‘(c) MAPS, CHARTS, ETC- The National Imagery and Mapping Agency shall prepare and distribute maps, charts, books, and geodetic products as authorized under subchapter II of this chapter.

    ‘(d) NATIONAL MISSIONS- The National Imagery and Mapping Agency also has national missions as specified in section 120(a) of the National Security Act of 1947.

    ‘(e) SYSTEMS- The National Imagery and Mapping Agency may, in furtherance of a mission of the Agency, design, develop, deploy, operate, and maintain systems related to the processing and dissemination of imagery intelligence and geospatial information that may be transferred to, accepted or used by, or used on behalf of--

      ‘(1) the armed forces, including any combatant command, component of a combatant command, joint task force, or tactical unit; or

      ‘(2) any other department or agency of the United States.

-‘Sec. 443. Imagery intelligence and geospatial information: support for foreign countries

    ‘(a) USE OF APPROPRIATED FUNDS- The Director of the National Imagery and Mapping Agency may use appropriated funds available to the National Imagery and Mapping Agency to provide foreign countries with imagery intelligence and geospatial information support.

    ‘(b) USE OF FUNDS OTHER THAN APPROPRIATED FUNDS- The Director may use funds other than appropriated funds to provide foreign countries with imagery intelligence and geospatial information support, notwithstanding provisions of law relating to the expenditure of funds of the United States, except that--

      ‘(1) no such funds may be expended, in whole or in part, by or for the benefit of the National Imagery and Mapping Agency for a purpose for which Congress had previously denied funds.

      ‘(2) proceeds from the sale of imagery intelligence or geospatial information items may be used only to purchase replacement items similar to the items that are sold; and

      ‘(3) the authority provided by this subsection may not be used to acquire items or services for the principal benefit of the United States.

    ‘(c) ACCOMMODATION PROCUREMENTS- The authority under this section may be exercised to conduct accommodation procurements on behalf of foreign countries.

    ‘(d) COORDINATION WITH DIRECTOR OF CENTRAL INTELLIGENCE- The Director of the Agency shall coordinate with the Director of Central Intelligence any action under this section that involves imagery intelligence or intelligence products or involves providing support to an intelligence or security service of a foreign country.

-‘Sec. 444. Support from Central Intelligence Agency

    ‘(a) SUPPORT AUTHORIZED- The Director of Central Intelligence may provide support in accordance with this section to the Director of the National Imagery and Mapping Agency. The Director of the National Imagery and Mapping Agency may accept support provided under this section.

    ‘(b) ADMINISTRATIVE AND CONTRACT SERVICES- (1) In furtherance of the national intelligence effort, the Director of Central Intelligence may provide administrative and contract services to the National Imagery and Mapping Agency as if that agency were an organizational element of the Central Intelligence Agency.

    ‘(2) Services provided under paragraph (1) may include the services of security police. For purposes of section 15 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation of the National Imagery and Mapping Agency that is provided security police services under this section shall be considered an installation of the Central Intelligence Agency.

    ‘(3) Support provided under this subsection shall be provided under terms and conditions agreed upon by the Secretary of Defense and the Director of Central Intelligence.

    ‘(c) DETAIL OF PERSONNEL- The Director of Central Intelligence may detail personnel of the Central Intelligence Agency indefinitely to the National Imagery and Mapping Agency without regard to any limitation on the duration of interagency details of Federal Government personnel.

    ‘(d) REIMBURSABLE OR NONREIMBURSABLE SUPPORT- Support under this section may be provided and accepted on either a reimbursable basis or a nonreimbursable basis.

    ‘(e) AUTHORITY TO TRANSFER FUNDS- (1) The Director of the National Imagery and Mapping Agency may transfer funds available for that agency to the Director of Central Intelligence for the Central Intelligence Agency.

    ‘(2) The Director of Central Intelligence--

      ‘(A) may accept funds transferred under paragraph (1); and

      ‘(B) shall expend such funds, in accordance with the Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.), to provide administrative and contract services or detail personnel to the National Imagery and Mapping Agency under this section.

-‘Sec. 445. Protection of agency identifications and organizational information

    ‘(a) UNAUTHORIZED USE OF AGENCY NAME, INITIALS, OR SEAL- (1) Except with the written permission of the Secretary of Defense, no person may knowingly use, in connection with any merchandise, retail product, impersonation, solicitation, or commercial activity in a manner reasonably calculated

to convey the impression that such use is approved, endorsed, or authorized by the Secretary of Defense, any of the following:

      ‘(A) The words ‘National Imagery and Mapping Agency’, the initials ‘NIMA’, or the seal of the National Imagery and Mapping Agency.

      ‘(B) The words ‘Defense Mapping Agency’, the initials ‘DMA’, or the seal of the Defense Mapping Agency.

      ‘(C) Any colorable imitation of such words, initials, or seals.

    ‘(2) Whenever it appears to the Attorney General that any person is engaged or about to engage in an act or practice which constitutes or will constitute conduct prohibited by paragraph (1), the Attorney General may initiate a civil proceeding in a district court of the United States to enjoin such act or practice. Such court shall proceed as soon as practicable to a hearing and determination of such action and may, at any time before such final determination, enter such restraining orders or prohibitions, or take such other action as is warranted, to prevent injury to the United States or to any person or class of persons for whose protection the action is brought.

‘SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

‘Sec.

      ‘451. Maps, charts, and books.

      ‘452. Pilot charts.

      ‘453. Prices of maps, charts, and navigational publications.

      ‘454. Exchange of mapping, charting, and geodetic data with foreign countries and international organizations.

      ‘455. Maps, charts, and geodetic data: public availability; exceptions.

      ‘456. Civil actions barred.

‘SUBCHAPTER III--PERSONNEL MANAGEMENT

‘Sec.

      ‘461. Management rights.

‘Sec. 461. Management rights

    ‘(a) SCOPE- If there is no obligation under the provisions of chapter 71 of title 5 for the head of an agency of the United States to consult or negotiate with a labor organization on a particular matter by reason of that matter being covered by a provision of law or a Governmentwide regulation, the Director of the National Imagery and Mapping Agency is not obligated to consult or negotiate with a labor organization on that matter even if that provision of law or regulation is inapplicable to the National Imagery and Mapping Agency.

    ‘(b) BARGAINING UNITS- The National Imagery and Mapping Agency shall accord exclusive recognition to a labor organization under section 7111 of title 5 only for a bargaining unit that was recognized as appropriate for the Defense Mapping Agency on the day before the date on which employees and positions of the Defense Mapping Agency in that bargaining unit became employees and positions of the National Imagery and Mapping Agency under the National Imagery and Mapping Agency Act of 1996 (title XI of the National Defense Authorization Act for Fiscal Year 1997).

    ‘(c) TERMINATION OF BARGAINING UNIT COVERAGE OF POSITION MODIFIED TO AFFECT NATIONAL SECURITY DIRECTLY- (1) If the Director of the National Imagery and Mapping Agency determines that the responsibilities of a position within a collective bargaining unit should be modified to include intelligence, counterintelligence, investigative, or security duties not previously assigned to that position and that the performance of the newly assigned duties directly affects the national security of the United States, then, upon such a modification of the responsibilities of that position, the position shall cease to be covered by the collective bargaining unit and the employee in that position shall cease to be entitled to representation by a labor organization accorded exclusive recognition for that collective bargaining unit.

    ‘(2) A determination described in paragraph (1) that is made by the Director of the National Imagery and Mapping Agency may not be reviewed by the Federal Labor Relations Authority or any court of the United States.

‘SUBCHAPTER IV--DEFINITIONS

‘Sec.

      ‘467. Definitions.

‘Sec. 467. Definitions

    ‘In this chapter:

      ‘(1) The term ‘function’ means any duty, obligation, responsibility, privilege, activity, or program.

      ‘(2)(A) The term ‘imagery’ means, except as provided in subparagraph (B), a likeness or presentation of any natural or manmade feature or related object or activity and the positional data acquired at the same time the likeness or representation was acquired, including--

        ‘(i) products produced by space-based national intelligence reconnaissance systems; and

        ‘(ii) likenesses or presentations produced by satellites, airborne platforms, unmanned aerial vehicles, or other similar means.

      ‘(B) Such term does not include handheld or clandestine photography taken by or on behalf of human intelligence collection organizations.

      ‘(3) The term ‘imagery intelligence’ means the technical, geographic, and intelligence information derived through the interpretation or analysis of imagery and collateral materials.

      ‘(4) The term ‘geospatial information’ means information that identifies the geographic location and characteristics of natural or constructed features and boundaries on the earth and includes--

        ‘(A) statistical data and information derived from, among other things, remote sensing, mapping, and surveying technologies;

        ‘(B) mapping, charting, and geodetic data; and

        ‘(C) geodetic products, as defined in section 455(c) of this title.’.

    (b) TRANSFER OF DEFENSE MAPPING AGENCY PROVISIONS- (1) Sections 2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United States Code, are transferred to subchapter II of chapter 22 of such title, as added by subsection (a), inserted in that sequence in such subchapter following the table of sections, and redesignated in accordance with the following table:

Section

--Section as

transferred

--redesignated

451

452

453

454

455

456.

    (2) Sections 451(1), 452, 453, 454, and 455 (in subsections (a) and (b)(1)(C)), and 456 of title 10, United States Code, as transferred and redesignated by paragraph (1), are amended by striking out ‘Defense Mapping Agency’ each place it appears and inserting in lieu thereof ‘National Imagery and Mapping Agency’.

    (c) OVERSIGHT OF AGENCY AS A COMBAT SUPPORT AGENCY- Section 193 of title 10, United States Code, is amended--

      (1) in subsection (d)--

        (A) by striking out the caption and inserting in lieu thereof ‘REVIEW OF NATIONAL SECURITY AGENCY AND NATIONAL IMAGERY AND MAPPING AGENCY- ’;

        (B) in paragraph (1)--

          (i) by inserting ‘and the National Imagery and Mapping Agency’ after ‘the National Security Agency’; and

          (ii) by striking out ‘the Agency’ and inserting in lieu thereof ‘that the agencies’; and

        (C) in paragraph (2), by inserting ‘and the National Imagery and Mapping Agency’ after ‘the National Security Agency’;

      (2) in subsection (e)--

        (A) by striking out ‘DIA AND NSA’ in the caption and inserting in lieu thereof the following: ‘DIA, NSA, AND NIMA’; and

        (B) by striking out ‘and the National Security Agency’ and inserting in lieu thereof ‘, the National Security Agency, and the National Imagery and Mapping Agency’; and

      (3) in subsection (f), by striking out paragraph (4) and inserting in lieu thereof the following:

      ‘(4) The National Imagery and Mapping Agency.’.

    (d) CONSOLIDATION AND STANDARDIZATION OF EXEMPTIONS FROM DISCLOSURE OF ORGANIZATIONAL AND PERSONNEL INFORMATION- Chapter 21 of title 10, United States Code, is amended by striking out sections 424 and 425 and inserting in lieu thereof the following:

-‘Sec. 424. Disclosure of organizational and personnel information: exemption for Defense Intelligence Agency, National Reconnaissance Office, and National Imagery and Mapping Agency

    ‘(a) EXEMPTION FROM DISCLOSURE- Except as required by the President or as provided in subsection (c), no provision of law shall be construed to require the disclosure of--

      ‘(1) the organization or any function of an organization of the Department of Defense named in subsection (b); or

      ‘(2) the number of persons employed by or assigned or detailed to any such organization or the name, official title, occupational series, grade, or salary of any such person.

    ‘(b) COVERED ORGANIZATIONS- This section applies to the following organizations of the Department of Defense:

      ‘(1) The Defense Intelligence Agency.

      ‘(2) The National Reconnaissance Office.

      ‘(3) The National Imagery and Mapping Agency.

    ‘(c) PROVISION OF INFORMATION TO CONGRESS- Subsection (a) does not apply with respect to the provision of information to Congress.’.

    (e) SPECIAL PRINTING AUTHORITY FOR AGENCY- (1) Section 207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993 (Public Law 102-392; 44 U.S.C. 501 note), is amended by inserting ‘National Imagery and Mapping Agency,’ after ‘Defense Intelligence Agency,’.

    (2) Section 1336 of title 44, United States Code, is amended--

      (A) by striking out ‘Secretary of the Navy’ and inserting in lieu thereof ‘Director of the National Imagery and Mapping Agency’; and

      (B) by striking out ‘United States Naval Oceanographic Office’ and inserting in lieu thereof ‘National Imagery and Mapping Agency’.

SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS.

    (a) PERSONNEL AND ASSETS- Subject to subsections (b) and (c), the personnel, assets, unobligated balances of appropriations and authorizations of appropriations, and, to the extent jointly determined appropriate by the Secretary of Defense and Director of Central Intelligence, obligated balances of appropriations and authorizations of appropriations employed, used, held, arising from, or available in connection with the missions and functions transferred under section 1111(b) or section 1111(c) are transferred to the National Imagery and Mapping Agency. Transfers of appropriations from the Central Intelligence Agency under this subsection shall be made in accordance with section 1531 of title 31, United States Code.

    (b) DETERMINATION OF CIA POSITIONS TO BE TRANSFERRED- Not earlier than two years after the effective date of this subtitle, the Secretary of Defense and the Director of Central Intelligence shall determine which, if any, positions and personnel of the Central Intelligence Agency are to be transferred to the National Imagery and Mapping Agency. The positions to be transferred, and the employees serving in such positions, shall be transferred to the National Imagery and Mapping Agency under terms and conditions prescribed by the Secretary of Defense and the Director of Central Intelligence.

    (c) RULE FOR CIA IMAGERY ACTIVITIES ONLY PARTIALLY TRANSFERRED- If the National Photographic Interpretation Center of the Central Intelligence Agency or any imagery-related activity of the Central Intelligence Agency authorized to be performed by the National Imagery and Mapping Agency is not completely transferred to the National Imagery and Mapping Agency, the Secretary of Defense and the Director of Central Intelligence shall--

      (1) jointly determine which, if any, contracts, leases, property, and records employed, used, held, arising from, available to, or otherwise relating to such Center or activity is to be transferred to the National Imagery and Intelligence Agency; and

      (2) provide by written agreement for the transfer of such items.

SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL SECURITY ACT OF 1947.

    (a) AGENCY FUNCTIONS- Paragraph (2) of section 105(b) of the National Security Act of 1947 (50 U.S.C. 403-5(b)) is amended to read as follows:

      ‘(2) through the National Imagery and Mapping Agency (except as otherwise directed by the President or the National Security Council), with appropriate representation from the intelligence community, the continued operation of an effective unified organization within the Department of Defense--

        ‘(A) for carrying out tasking of imagery collection;

        ‘(B) for the coordination of imagery processing and exploitation activities;

        ‘(C) for ensuring the dissemination of imagery in a timely manner to authorized recipients; and

        ‘(D) notwithstanding any other provision of law, for--

          ‘(i) prescribing technical architecture and standards related to imagery intelligence and geospatial information and ensuring compliance with such architecture and standards; and

          ‘(ii) developing and fielding systems of common concern related to imagery intelligence and geospatial information;’.

    (b) NATIONAL MISSION- Title I of such Act (50 U.S.C. 402 et seq.) is amended by adding at the end the following new section:

‘NATIONAL MISSION OF NATIONAL IMAGERY AND MAPPING AGENCY

    ‘SEC. 120. (a) IN GENERAL- In addition to the Department of Defense missions set forth in section 442 of title 10, United States Code, the National Imagery and Mapping Agency shall support the imagery requirements of the Department of State and other departments and agencies of the United States outside the Department of Defense.

    ‘(b) REQUIREMENTS AND PRIORITIES- The Director of Central Intelligence shall establish requirements and priorities governing the collection of national intelligence by the National Imagery and Mapping Agency under subsection (a).

    ‘(c) CORRECTION OF DEFICIENCIES- The Director of Central Intelligence shall develop and implement such programs and policies as the Director and the Secretary of Defense jointly determine necessary to review and correct deficiencies identified in the capabilities of the National Imagery and Mapping Agency to accomplish assigned national missions, including support to the all-source analysis and production process. The Director shall consult with the Secretary of Defense on the development and implementation of such programs and policies. The Secretary shall obtain the advice of the Chairman of the Joint Chiefs of Staff regarding the matters on which the Director and the Secretary are to consult under the preceding sentence.’.

    (c) TASKING OF IMAGERY ASSETS- Title I of such Act is further amended by adding at the end the following new section:

‘COLLECTION TASKING AUTHORITY

    ‘SEC. 121. Unless otherwise directed by the President, the Director of Central Intelligence shall have authority (except as otherwise agreed by the Director and the Secretary of Defense) to--

      ‘(1) approve collection requirements levied on national imagery collection assets;

      ‘(2) determine priorities for such requirements; and

      ‘(3) resolve conflicts in such priorities.’.

    (d) CLERICAL AMENDMENT- The table of contents in the first section of such Act is amended by inserting after the item relating to section 109 the following new items:

      ‘Sec. 120. National mission of National Imagery and Mapping Agency.

      ‘Sec. 121. Collection tasking authority.’.

SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDITIONAL EMPLOYEES OF THE DEFENSE MAPPING AGENCY.

    In the case of an employee of the National Imagery and Mapping Agency who, on the day before the effective date of this title, was an employee of the Defense Mapping Agency in a career-conditional status, the continuous service of that employee as an employee of the National Imagery and Mapping Agency on and after such date shall be considered creditable service for the purpose of any determination of the career status of the employee.

SEC. 1116. SAVING PROVISIONS.

    (a) CONTINUING EFFECT ON LEGAL DOCUMENTS- All orders, determinations, rules, regulations, permits, agreements, international agreements, grants, contracts, leases, certificates, licenses, registrations, privileges, and other administrative actions--

      (1) which have been issued, made, granted, or allowed to become effective by the President, any Federal agency or official thereof, or by a court of competent jurisdiction, in connection with any of the functions which are transferred under this title or any function that the National Imagery and Mapping Agency is authorized to perform by law, and

      (2) which are in effect at the time this title takes effect, or were final before the effective date of this title and are to become effective on or after the effective date of this title,

    shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, the Secretary of Defense, the Director of the National Imagery and Mapping Agency or other authorized official, a court of competent jurisdiction, or by operation of law.

    (b) PROCEEDINGS NOT AFFECTED- This title and the amendments made by this title shall not affect any proceedings, including notices of proposed rulemaking, or any application for any license, permit, certificate, or financial assistance pending before an element of the Department of Defense or Central Intelligence Agency at the time this title takes effect, with respect to function of that element transferred by section 1122, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this title had not been enacted, and orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this section shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this title had not been enacted.

SEC. 1117. DEFINITIONS.

    In this subtitle, the terms ‘function’, ‘imagery’, ‘imagery intelligence’, and ‘geospatial information’ have the meanings given those terms in section 467 of title 10, United States Code, as added by section 1112.

SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

    Funds are authorized to be appropriated for the National Imagery and Mapping Agency for fiscal year 1997 in amounts and for purposes, and subject to the terms, conditions, limitations, restrictions, and requirements, that are set forth in the Classified Annex to this Act.

Subtitle B--Conforming Amendments and Effective Dates

SEC. 1121. REDESIGNATION AND REPEALS.

    (a) REDESIGNATION- Chapter 23 of title 10, United States Code (as redesignated by section 1112(a)(1)) is amended by redesignating the sections in that chapter as sections 481 and 482, respectively.

    (b) REPEAL OF SUPERSEDED LAW- Chapter 167 of such title, as amended by section 1112(b), is repealed.

SEC. 1122. REFERENCE AMENDMENTS.

    (a) TITLE 5, UNITED STATES CODE- Title 5, United States Code, is amended as follows:

      (1) CENTRAL IMAGERY OFFICE- Sections 2302(a)(2)(C)(ii), 3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 5102(a)(1) (in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), and 7323(b)(2)(B)(i)(XIII) are amended by striking out ‘Central Imagery Office’ and inserting in lieu thereof ‘National Imagery and Mapping Agency’.

      (2) DIRECTOR, CENTRAL IMAGERY OFFICE- Section 6339(a)(2)(E) is amended by striking out ‘Central Imagery Office, the Director of the Central Imagery Office’ and inserting in lieu thereof ‘National Imagery and Mapping Agency, the Director of the National Imagery and Mapping Agency’.

    (b) OTHER LAWS- The following provisions of law are amended by striking out ‘Central Imagery Office’ and inserting in lieu thereof ‘National Imagery and Mapping Agency’:

      (1) NATIONAL SECURITY ACT OF 1947- Section 3(4)(E) of the National Security Act of 1947 (50 U.S.C. 401a(4)(E)).

      (2) ETHICS IN GOVERNMENT ACT OF 1978- Section 105(a) of the Ethics in Government Act of 1978 (Public Law 95-521; 5 U.S.C. App. 4).

      (3) EMPLOYEE POLYGRAPH PROTECTION ACT- Section 7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 1988 (Public Law 100-347; 29 U.S.C. 2006(b)(2)(A)(i)).

    (c) CROSS REFERENCE- Section 82 of title 14, United States Code, is amended by striking out ‘chapter 167’ and inserting in lieu thereof ‘subchapter II of chapter 22’.

SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

    (a) TITLE 10, UNITED STATES CODE-

      (1) The table of chapters at the beginning of subtitle A of title 10, United States Code, is amended--

        (A) by striking out the item relating to chapter 22 and inserting in lieu thereof the following:

441

471’;

        and

        (B) by striking out the item relating to chapter 167.

      (2) The table of chapters at the beginning of part I of such subtitle is amended by striking out the item relating to chapter 22 and inserting in lieu thereof the following:

441

471’;

      (3) The table of chapters at the beginning of part IV of such subtitle is amended by striking out the item relating to chapter 167.

      (4) The items in the table of sections at the beginning of chapter 23 of title 10, United States Code (as redesignated by section 1112(a)(1)), are revised so as to reflect the redesignations made by section 1121(a).

    (b) TITLE 44, UNITED STATES CODE-

      (1) The heading of section 1336 of title 44, United States Code, is amended to read as follows:

‘Sec. 1336. National Imagery and Mapping Agency: special publications’.

      (2) The item relating to that section in the tables of sections at the beginning of chapter 13 of such title is amended to read as follows:

      ‘1336. National Imagery and Mapping Agency: special publications.’.

SEC. 1124. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect on October 1, 1996, or the date of the enactment of this Act, whichever is later.

TITLE XII--RESERVE FORCES REVITALIZATION

TITLE XII--RESERVE FORCES REVITALIZATION

      Sec. 1201. Short title.

      Sec. 1202. Purpose.

Subtitle A--Reserve Component Structure

      Sec. 1211. Reserve component commands.

      Sec. 1212. Reserve component chiefs.

      Sec. 1213. Review of active duty and Reserve general and flag officer authorizations.

      Sec. 1214. Guard and Reserve technicians.

Subtitle B--Reserve Component Accessibility

      Sec. 1231. Report to Congress on measures to improve National Guard and Reserve ability to respond to emergencies.

      Sec. 1232. Report to Congress concerning tax incentives for employers of members of Reserve components.

      Sec. 1233. Report to Congress concerning income insurance program for activated Reservists.

      Sec. 1234. Report to Congress concerning small business loans for members released from Reserve service during contingency operations.

Subtitle C--Reserve Forces Sustainment

      Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses.

      Sec. 1252. Authority to pay transient housing charges for members performing active duty for training.

      Sec. 1253. Sense of Congress concerning quarters allowance during service on active duty for training.

      Sec. 1254. Sense of Congress concerning military leave policy.

      Sec. 1255. Reserve Forces Policy Board.

      Sec. 1256. Report on parity of benefits for active duty service and Reserve service.

      Sec. 1257. Information on proposed funding for the Guard and Reserve components in future-years defense programs.

SEC. 1201. SHORT TITLE.

    This title may be cited as the ‘Reserve Forces Revitalization Act of 1996’.

SEC. 1202. PURPOSE.

    The purpose of this title is to revise the basic statutory authorities governing the organization and administration of the reserve components of the Armed Forces in order to recognize the realities of reserve component partnership in the Total Force and to better prepare the American citizen-soldier, sailor, airman, and Marine in time of peace for duties in war.

Subtitle A--Reserve Component Structure

SEC. 1211. RESERVE COMPONENT COMMANDS.

    (a) ESTABLISHMENT- (1) Part I of subtitle E of title 10, United States Code, is amended by inserting after chapter 1005 the following new chapter:

‘CHAPTER 1006--RESERVE COMPONENT COMMANDS

‘Sec.

      ‘10171. United States Army Reserve Command.

      ‘10172. Naval Reserve Force.

      ‘10173. Marine Forces Reserve.

      ‘10174. Air Force Reserve Command.

‘Sec. 10171. United States Army Reserve Command

    ‘(a) COMMAND- The United States Army Reserve Command is a separate command of the Army commanded by the Chief of Army Reserve.

    ‘(b) CHAIN OF COMMAND- Except as otherwise prescribed by the Secretary of Defense, the Secretary of the Army shall prescribe the chain of command for the United States Army Reserve Command.

    ‘(c) ASSIGNMENT OF FORCES- The Secretary of the Army--

      ‘(1) shall assign to the United States Army Reserve Command all forces of the Army Reserve in the continental United States other than forces assigned to the unified combatant command for special operations forces established pursuant to section 167 of this title; and

      ‘(2) except as otherwise directed by the Secretary of Defense in the case of forces assigned to carry out functions of the Secretary of the Army specified in section 3013 of this title, shall assign all such forces of the Army Reserve to the commander of the United States Atlantic Command.

‘Sec. 10172. Naval Reserve Force

    ‘(a) ESTABLISHMENT OF COMMAND- The Secretary of the Navy, with the advice and assistance of the Chief of Naval Operations, shall establish a Naval Reserve Force. The Naval Reserve Force shall be operated as a separate command of the Navy.

    ‘(b) COMMANDER- The Chief of Naval Reserve shall be the commander of the Naval Reserve Force. The commander of the Naval Reserve Force reports directly to the Chief of Naval Operations.

    ‘(c) ASSIGNMENT OF FORCES- The Secretary of the Navy--

      ‘(1) shall assign to the Naval Reserve Force specified portions of the Naval Reserve other than forces assigned to the unified combatant command for special operations forces established pursuant to section 167 of this title; and

      ‘(2) except as otherwise directed by the Secretary of Defense in the case of forces assigned to carry out functions of the Secretary of the Navy specified in section 5013 of this title, shall assign to the combatant commands all such forces assigned to the Naval Reserve Force under paragraph (1) in the manner specified by the Secretary of Defense.

‘Sec. 10173. Marine Forces Reserve

    ‘(a) ESTABLISHMENT- The Secretary of the Navy, with the advice and assistance of the Commandant of the Marine Corps, shall establish in the Marine Corps a command known as the Marine Forces Reserve.

    ‘(b) COMMANDER- The Marine Forces Reserve is commanded by the Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve, reports directly to the Commandant of the Marine Corps.

    ‘(c) ASSIGNMENT OF FORCES- The Commandant of the Marine Corps--

      ‘(1) shall assign to the Marine Forces Reserve the forces of the Marine Corps Reserve stationed in the continental United States other than forces assigned to the unified combatant command for special operations forces established pursuant to section 167 of this title; and

      ‘(2) except as otherwise directed by the Secretary of Defense in the case of forces assigned to carry out functions of the Secretary of the Navy specified in section 5013 of this title, shall assign to the combatant commands (through the Marine Corps component commander for each such command) all such forces assigned to the Marine Forces Reserve under paragraph (1) in the manner specified by the Secretary of Defense.

‘Sec. 10174. Air Force Reserve Command

    ‘(a) ESTABLISHMENT OF COMMAND- The Secretary of the Air Force, with the advice and assistance of the Chief of Staff of the Air Force, shall establish an Air Force Reserve Command. The Air Force Reserve Command shall be operated as a separate command of the Air Force.

    ‘(b) COMMANDER- The Chief of Air Force Reserve is the Commander of the Air Force Reserve Command. The commander of the Air Force Reserve Command reports directly to the Chief of Staff of the Air Force.

    ‘(c) ASSIGNMENT OF FORCES- The Secretary of the Air Force--

      ‘(1) shall assign to the Air Force Reserve Command all forces of the Air Force Reserve stationed in the continental United States other than forces assigned to the unified combatant command for special operations forces established pursuant to section 167 of this title; and

      ‘(2) except as otherwise directed by the Secretary of Defense in the case of forces assigned to carry out functions of the Secretary of the Air Force specified in section 8013 of this title, shall assign to the combatant commands all such forces assigned to the Air Force Reserve Command under paragraph (1) in the manner specified by the Secretary of Defense.’.

    (2) The tables of chapters at the beginning of part I of such subtitle and at the beginning of such subtitle are each amended by inserting after the item relating to chapter 1005 the following new item:

10171’.

    (b) CONFORMING REPEAL- Section 903 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is repealed.

    (c) IMPLEMENTATION SCHEDULE- Implementation of chapter 1006 of title 10, United States Code, as added by subsection (a), shall begin not later than 90 days after the date of the enactment of this Act and shall be completed not later than one year after such date.

SEC. 1212. RESERVE COMPONENT CHIEFS.

    (a) CHIEF OF ARMY RESERVE- Section 3038 of title 10, United States Code, is amended by adding at the end the following new subsections:

    ‘(d) BUDGET- The Chief of Army Reserve is the official within the executive part of the Department of the Army who, subject to the authority, direction, and control of the Secretary of the Army and the Chief of Staff, is responsible for justification and execution of the personnel, operation and maintenance, and construction budgets for the Army Reserve. As such, the Chief of Army Reserve is the director and functional manager of appropriations made for the Army Reserve in those areas.

    ‘(e) FULL TIME SUPPORT PROGRAM- The Chief of Army Reserve manages, with respect to the Army Reserve, the personnel program of the Department of Defense known as the Full Time Support Program.

    ‘(f) ANNUAL REPORT- (1) The Chief of Army Reserve shall submit to the Secretary of Defense, through the Secretary of the Army, an annual report on the state of the Army Reserve and the ability of the Army Reserve to meet its missions. The report shall be prepared in conjunction with the Chief of Staff of the Army and may be submitted in classified and unclassified versions.

    ‘(2) The Secretary of Defense shall transmit the annual report of the Chief of Army Reserve under paragraph (1) to Congress, together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time each year that the annual report of the Secretary under section 113 of this title is submitted to Congress.’.

    (b) CHIEF OF NAVAL RESERVE- (1) Chapter 513 of such title is amended by inserting after section 5142a the following new section:

‘Sec. 5143. Office of Naval Reserve: appointment of Chief

    ‘(a) ESTABLISHMENT OF OFFICE: CHIEF OF NAVAL RESERVE- There is in the executive part of the Department of the Navy, on the staff of the Chief of Naval Operations, an Office of the Naval Reserve, which is headed by a Chief of Naval Reserve. The Chief of Naval Reserve--

      ‘(1) is the principal adviser on Naval Reserve matters to the Chief of Naval Operations; and

      ‘(2) is the commander of the Naval Reserve Force.

    ‘(b) APPOINTMENT- The President, by and with the advice and consent of the Senate, shall appoint the Chief of Naval Reserve from officers who--

      ‘(1) have had at least 10 years of commissioned service;

      ‘(2) are in a grade above captain; and

      ‘(3) have been recommended by the Secretary of the Navy.

    ‘(c) GRADE- (1) The Chief of Naval Reserve holds office for a term determined by the Chief of Naval Operations, normally four years, but may be removed for cause at any time. He is eligible to succeed himself.

    ‘(2) The Chief of Naval Reserve, while so serving, has a grade above rear admiral (lower half), without vacating the officer’s permanent grade.

    ‘(d) BUDGET- The Chief of Naval Reserve is the official within the executive part of the Department of the Navy who, subject to the authority, direction, and control of the Secretary of the Navy and the Chief of Naval Operations, is responsible for preparation, justification, and execution of the personnel, operation and maintenance, and construction budgets for the Naval Reserve. As such, the Chief of Naval Reserve is the director and functional manager of appropriations made for the Naval Reserve in those areas.

    ‘(e) ANNUAL REPORT- (1) The Chief of Naval Reserve shall submit to the Secretary of Defense, through the Secretary of the Navy, an annual report on the state of the Naval Reserve and the ability of the Naval Reserve to meet its missions. The report shall be prepared in conjunction with the Chief of Naval Operations and may be submitted in classified and unclassified versions.

    ‘(2) The Secretary of Defense shall transmit the annual report of the Chief of Naval Reserve under paragraph (1) to Congress, together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time each year that the annual report of the Secretary under section 113 of this title is submitted to Congress.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5142a the following new item:

      ‘5143. Office of Naval Reserve: appointment of Chief.’.

    (c) CHIEF OF MARINE FORCES RESERVE- (1) Chapter 513 of such title is amended by inserting after section 5143 (as added by subsection (b)) the following new section:

‘Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

    ‘(a) ESTABLISHMENT OF OFFICE; COMMANDER, MARINE FORCES RESERVE- There is in the executive part of the Department of the Navy an Office of the Marine Forces Reserve, which is headed by the Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve, is the principal adviser to the Commandant on Marine Forces Reserve matters.

    ‘(b) APPOINTMENT- The President, by and with the advice and consent of the Senate, shall appoint the Commander, Marine Forces Reserve, from officers of the Marine Corps who--

      ‘(1) have had at least 10 years of commissioned service;

      ‘(2) are in a grade above colonel; and

      ‘(3) have been recommended by the Secretary of the Navy.

    ‘(c) TERM OF OFFICE; GRADE- (1) The Commander, Marine Forces Reserve, holds office for a term determined by the Commandant of the Marine Corps, normally four years, but may be removed for cause at any time. He is eligible to succeed himself.

    ‘(2) The Commander, Marine Forces Reserve, while so serving, has a grade above brigadier general, without vacating the officer’s permanent grade.

    ‘(d) ANNUAL REPORT- (1) The Commander, Marine Forces Reserve, shall submit to the Secretary of Defense, through the Secretary of the Navy, an annual report on the state of the Marine Corps Reserve and the ability of the Marine Corps Reserve to meet its missions. The report shall be prepared in conjunction with the Commandant of the Marine Corps and may be submitted in classified and unclassified versions.

    ‘(2) The Secretary of Defense shall transmit the annual report of the Commander, Marine Forces Reserve, under paragraph (1) to Congress, together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time each year that the annual report of the Secretary under section 113 of this title is submitted to Congress.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5143 (as added by subsection (b)) the following new item:

‘5144. Office of Marine Forces Reserve: appointment of Commander.’.

    (d) CHIEF OF AIR FORCE RESERVE- Section 8038 of such title is amended by adding at the end the following new subsections:

    ‘(d) BUDGET- The Chief of Air Force Reserve is the official within the executive part of the Department of the Air Force who, subject to the authority, direction, and control of the Secretary of the Air Force and the Chief of Staff, is responsible for preparation, justification, and execution of the personnel, operation and maintenance, and construction budgets for the Air Force Reserve. As such, the Chief of Air Force Reserve is the director and functional manager of appropriations made for the Air Force Reserve in those areas.

    ‘(e) FULL TIME SUPPORT PROGRAM- (1) The Chief of Air Force Reserve manages, with respect to the Air Force Reserve, the personnel program of the Department of Defense known as the Full Time Support Program.

    ‘(f) ANNUAL REPORT- (1) The Chief of Air Force Reserve shall submit to the Secretary of Defense, through the Secretary of the Air Force, an annual report on the state of the Air Force Reserve and the ability of the Air Force Reserve to meet its missions. The report shall be prepared in conjunction with the Chief of Staff of the Air Force and may be submitted in classified and unclassified versions.

    ‘(2) The Secretary of Defense shall transmit the annual report of the Chief of Air Force Reserve under paragraph (1) to Congress, together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time each year that the annual report of the Secretary under section 113 of this title is submitted to Congress.’.

    (e) CONFORMING AMENDMENT- Section 641(1)(B) of such title is amended by inserting ‘5143, 5144,’ after ‘3038,’.

SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG OFFICER AUTHORIZATIONS.

    (a) REPORT TO CONGRESS- Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report containing any recommendations of the Secretary (together with the rationale of the Secretary for the recommendations) concerning the following:

      (1) Revision of the limitations on general and flag officer grade authorizations and distribution in grade prescribed by sections 525, 526, and 12004 of title 10, United States Code.

      (2) Statutory designation of the positions and grades of any additional general and flag officers in the commands and offices created by sections 1211 and 1212.

    (b) MATTERS TO BE INCLUDED- The Secretary shall include in the report under subsection (a) the Secretary’s views on whether current limitations referred to in subsection (a)--

      (1) permit the Secretaries of the military departments, in view of increased requirements for assignment of general and flag officers in positions external to their organic services, to meet adequately both internal and external requirements for general and flag officers;

      (2) adequately recognize the significantly increased role of the reserve components in both service-specific and joint operations; and

      (3) permit the Secretaries of the military departments and the reserve components to assign general and flag officers to active and reserve component positions with grades commensurate with the scope of duties and responsibilities of the position.

    (c) EXEMPTIONS FROM ACTIVE-DUTY CEILINGS- (1) The Secretary shall include in the report under subsection (a) the Secretary’s recommendations regarding the merits of exempting from any active-duty ceiling (established by law or administrative action) the following officers:

      (A) Reserve general and flag officers assigned to positions specified in the organizations created by this title.

      (B) Reserve general and flag officers serving on active duty, but who are excluded from the active-duty list.

    (2) If the Secretary determines under paragraph (1) that any Reserve general or flag officers should be exempt from active duty limits, the Secretary shall include in the report under subsection (a) the Secretary’s recommendations for--

      (A) the effective management of those Reserve general and flag officers; and

      (B) revision of active duty ceilings so as to prevent an increase in the numbers of active general and flag officers authorizations due solely to the removal of Reserve general and flag officers from under the active duty authorizations.

    (3) If the Secretary determines under paragraph (1) that active and reserve general officers on active duty should continue to be managed under a common ceiling, the Secretary shall make recommendations for the appropriate apportionment of numbers for general and flag officers among active and reserve officers.

    (d) RESERVE FORCES POLICY BOARD PARTICIPATION- The Secretary of Defense shall ensure that the Reserve Forces Policy Board participates in the internal Department of Defense process for development of the recommendations of the Secretary contained in the report under subsection (a). If the Board submits to the Secretary any comments or recommendations for inclusion in the report, the Secretary shall transmit them to Congress, with the report, in the same form as that in which they were submitted to the Secretary.

    (e) GAO REVIEW- The Comptroller General of the United States shall assess the criteria used by the Secretary of Defense to develop recommendations for purposes of the report under this section and shall submit to Congress, not later than 30 days after the date on which the report of the Secretary under this section is submitted, a report setting forth the Comptroller General’s conclusions concerning the adequacy and completeness of the recommendations made by the Secretary in the report.

SEC. 1214. GUARD AND RESERVE TECHNICIANS.

    Section 10216 of title 10, United States Code, as amended by section 413, is amended--

      (1) by redesignating subsections (a), (b), and (c) as subsections (b), (c), and (d), respectively;

      (2) by inserting after the section heading the following new subsection (a):

    ‘(a) IN GENERAL- Military technicians are Federal civilian employees hired under title 5 and title 32 who are required to maintain dual-status as drilling reserve component members as a condition of their Federal civilian employment. Such employees shall be authorized and accounted for as a separate category of dual-status civilian employees, exempt as specified in subsection (b)(3) from any general or regulatory requirement for adjustments in Department of Defense civilian personnel.’; and

      (3) in paragraph (3) of subsection (b), as redesignated by paragraph (1), by striking out ‘in high-priority units and organizations specified in paragraph (1)’.

Subtitle B--Reserve Component Accessibility

SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL GUARD AND RESERVE ABILITY TO RESPOND TO EMERGENCIES.

    (a) REPORT- Not later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report regarding reserve component responsiveness to both domestic emergencies and national contingency operations. The report shall set forth the measures taken, underway, and projected to be taken to improve the timeliness, adequacy, and effectiveness of reserve component responses to such emergencies and operations.

    (b) MATTERS RELATED TO RESPONSIVENESS TO DOMESTIC EMERGENCIES- The report shall address the following:

      (1) The need to expand the time period set by section 12301(b) of title 10, United States Code, which permits the involuntary recall at any time to active duty of units and individuals for up to 15 days per year.

      (2) The recommendations of the 1995 report of the RAND Corporation entitled ‘Assessing the State and Federal Missions of the National Guard’, as follows:

        (A) That Federal law be clarified and amended to authorize Presidential use of the Federal reserves of all military services for domestic emergencies and disasters without any time constraint.

        (B) That the Secretary of Defense develop and support establishment of an appropriate national level compact for interstate sharing of resources, including the domestic capabilities of the national guards of the States, during emergencies and disasters.

        (C) That Federal level contingency stocks be created to support the National Guard in domestic disasters.

        (D) That Federal funding and regulatory support be provided for Federal-State disaster emergency response planning exercises.

    (c) MATTERS RELATED TO PRESIDENTIAL RESERVE CALL-UP AUTHORITY- The report under this section shall specifically address matters related to the authority of the President to activate for service on active duty units and members of reserve components under sections 12301, 12302, and 12304 of title 10, United States Code, including--

      (1) whether such authority is adequate to meet the full range of reserve component missions for the 21st century, particularly with regard to the time periods for which such units and members may be on active duty under those authorities and the ability to activate both units and individual members; and

      (2) whether the three-tiered set of statutory authorities (under such sections 12301, 12302, and 12304) should be consolidated, modified, or in part eliminated in order to facilitate current and future use of Reserve units and individual reserve component members for a broader range of missions, and, if so, in what manner.

    (d) MATTERS RELATED TO RELEASE FROM ACTIVE DUTY- The report under this section shall include findings and recommendations (based upon a review of current policies and procedures) concerning procedures for release from active duty of units and members of reserve components who have been involuntarily called or ordered to active duty under section 12301, 12302, or 12304 of title 10, United States Code, with specific recommendations concerning the desirability of statutory provisions to--

      (1) establish specific guidelines for when it is appropriate (or inappropriate) to retain on active duty such reserve component units when active component units are available to perform the mission being performed by the reserve component unit;

      (2) minimize the effects of frequent mobilization of the civilian employers, as well as the effects of frequent mobilization on recruiting and retention in the reserve components; and

      (3) address other matters relating to the needs of such members of reserve components, their employers, and (in the case of such members who own businesses) their employees, while such members are on active duty.

    (e) RESERVE FORCES POLICY BOARD PARTICIPATION- The Secretary of Defense shall ensure that the Reserve Forces Policy Board participates in the internal Department of Defense process for development of the recommendations of the Secretary contained in the report under subsection (a). If the Board submits to the Secretary any comments or recommendations for inclusion in the report, the Secretary shall transmit them to Congress, with the report, in the same form as that in which they were submitted to the Secretary.

    (f) GAO REVIEW- The Comptroller General of the United States shall assess the criteria used by the Secretary of Defense to develop recommendations for purposes of the report under this section and shall submit to Congress, not later than 30 days after the date on which the report of the Secretary under this section is submitted, a report setting forth the Comptroller General’s conclusions concerning the adequacy and completeness of the recommendations made by the Secretary in the report.

SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR EMPLOYERS OF MEMBERS OF RESERVE COMPONENTS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to provide tax incentives to employers of members of reserve components in order to compensate employers for absences of those employees due to required training and for absences due to performance of active duty.

SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM FOR ACTIVATED RESERVISTS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth legislative recommendations for changes to chapter 1214 of title 10, United States Code. Such recommendations shall in particular provide, in the case of a mobilized member who owns a business, income replacement for that business and for employees of that member or business who have a loss of income during the period of such activation attributable to the activation of the member.

SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR MEMBERS RELEASED FROM RESERVE SERVICE DURING CONTINGENCY OPERATIONS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to establish a small business loan program to provide members of reserve components who are ordered to active duty or active Federal service (other than for training) during a contingency operation (as defined in section 101 of title 10, United States Code) low-cost loans to assist those members in retaining or rebuilding businesses that were affected by their service on active duty or in active Federal service.

Subtitle C--Reserve Forces Sustainment

SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE EXPENSES.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to restore the tax deductibility of nonreimbursable expenses incurred by members of reserve components in connection with military service.

SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS PERFORMING ACTIVE DUTY FOR TRAINING.

    Section 404(j)(1) of title 37, United States Code, is amended by striking out ‘annual training duty’ and inserting in lieu thereof ‘active duty for training’.

SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING SERVICE ON ACTIVE DUTY FOR TRAINING.

    It is the sense of Congress that the United States should continue to pay members of reserve components appropriate quarters allowances during periods of service on active duty for training.

SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE POLICY.

    It is the sense of Congress that military leave policies in effect as of the date of the enactment of this Act with respect to members of the reserve components should not be changed.

SEC. 1255. RESERVE FORCES POLICY BOARD.

    (a) COMMENDATION- The Congress commends the Reserve Forces Policy Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-476), for its fine work in the past as an independent source of advice to the Secretary of Defense on all matters pertaining to the reserve components.

    (b) SENSE OF CONGRESS- It is the sense of Congress that the Reserve Forces Policy Board and the reserve forces policy committees for the individual branches of the Armed

Forces should continue to perform the vital role of providing the civilian leadership of the Department of Defense with independent advice on matters pertaining to the reserve components.

    (c) ANNUAL REPORT OF RESERVE FORCES POLICY BOARD- Section 113(c) of title 10, United States Code, is amended--

      (1) by striking out paragraph (3);

      (2) by redesignating paragraphs (1), (2), and (4) as subparagraphs (A), (B), and (C), respectively;

      (3) by inserting ‘(1)’ after ‘(c)’;

      (4) by inserting ‘and’ at the end of subparagraph (B), as redesignated by paragraph (2); and

      (5) by adding at the end the following:

    ‘(2) At the same time that the Secretary submits the annual report under paragraph (1), the Secretary shall transmit to the President and Congress a separate report from the Reserve Forces Policy Board on the reserve programs of the Department of Defense and on any other matters that the Reserve Forces Policy Board considers appropriate to include in the report.’.

SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY SERVICE AND RESERVE SERVICE.

    No later than six months after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report providing recommendations for changes in law that the Secretary considers necessary, feasible, and affordable to reduce the disparities in pay and benefits that occur between active component members of the Armed Forces and reserve component members as a result of eligibility based on length of time on active duty.

SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND RESERVE COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

    (a) IN GENERAL- (1) Chapter 1013 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 10543. National Guard and reserve component equipment procurement and military construction funding: inclusion in future-years defense program

    ‘The Secretary of Defense shall specify in each future-years defense program submitted to Congress under section 221 of this title the estimated expenditures and the proposed appropriations, for each fiscal year of the period covered by that program, for the procurement of equipment and for military construction for each of the reserve components of the armed forces.’.

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

      ‘10543. National Guard and reserve component equipment procurement and military construction funding: inclusion in future-years defense program.’.

    (b) EFFECTIVE DATE- Section 10543 of title 10, United States Code, as added by subsection (a), shall apply with respect to each future-years defense program submitted to Congress after the date of the enactment of this Act.

TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Subtitle A--Arms Control, Counterpro- liferation Activities, and Related Matters

      Sec. 1301. Extension of counterproliferation authorities.

      Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear delivery systems.

      Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities.

      Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic assistance for clearance of landmines.

      Sec. 1305. Report on military capabilities of People’s Republic of China.

      Sec. 1306. Presidential report regarding weapons proliferation and policies of the People’s Republic of China.

      Sec. 1307. United States-People’s Republic of China Joint Defense Conversion Commission.

      Sec. 1308. Sense of Congress concerning export controls.

      Sec. 1309. Counterproliferation Program Review Committee.

      Sec. 1310. Sense of Congress concerning assisting other countries to improve security of fissile material.

      Sec. 1311. Review by Director of Central Intelligence of National Intelligence Estimate 95-19.

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

      Sec. 1321. Establishment of Commission.

      Sec. 1322. Duties of Commission.

      Sec. 1323. Report.

      Sec. 1324. Powers.

      Sec. 1325. Commission procedures.

      Sec. 1326. Personnel matters.

      Sec. 1327. Miscellaneous administrative provisions.

      Sec. 1328. Funding.

      Sec. 1329. Termination of the Commission.

Subtitle A--Arms Control, Counter-proliferation Activities, and Related Matters

SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

    (a) ONE-YEAR EXTENSION OF AUTHORITY- Section 1505 of the Weapons of Mass Destruction Control Act of 1992 (title XV of Public Law 102-484; 22 U.S.C. 5859a) is amended--

      (1) in subsection (d)(3), by striking out ‘or’ after ‘fiscal year 1995,’ and by inserting ‘, or $15,000,000 for fiscal year 1997’ before the period at the end; and

      (2) in subsection (f), by striking out ‘1996’ and inserting in lieu thereof ‘1997’.

    (b) FUNDING FLEXIBILITY- Subsection (d) of such section is further amended by adding at the end the following new paragraph:

    ‘(4)(A) In the event of a significant unforeseen development related to the activities of the United Nations Special Commission on Iraq for which the Secretary of Defense determines that financial assistance under this section is required at a level which would result in the total amount of assistance provided under this section during the then-current fiscal year exceeding the amount specified with respect to that year under paragraph (3), the Secretary of Defense may provide such assistance notwithstanding the limitation with respect to that fiscal year under paragraph (3). Funds for such purpose may be derived from any funds available to the Department of Defense for that fiscal year.

    ‘(B) Financial assistance may be provided under subparagraph (A) only after the Secretary of Defense provides notice in writing to the committees of Congress named in subsection (e)(2) of the significant unforeseen development and of the Secretary’s intent to provide assistance in excess of the limitation for that fiscal year under paragraph (3). However, if the Secretary determines in any case that under the specific circumstances of that case advance notice is not possible, such notice shall be provided as soon as possible and not later than 15 days after the date on which the assistance is provided. Any notice under this subparagraph shall include a description of the development, the amount of assistance provided or to be provided, and the source of the funds for that assistance.’.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    (a) FUNDING LIMITATION- Funds available to the Department of Defense may not be obligated or expended during fiscal year 1997 for retiring or dismantling, or for preparing to retire or dismantle, any of the following strategic nuclear delivery systems:

      (1) B-52H bomber aircraft.

      (2) Trident ballistic missile submarines.

      (3) Minuteman III intercontinental ballistic missiles.

      (4) Peacekeeper intercontinental ballistic missiles.

    (b) WAIVER AUTHORITY- If the START II Treaty enters into force during fiscal year 1996 or fiscal year 1997, the Secretary of Defense may waive the application of the limitation under paragraphs (2), (3), and (4) of subsection (a) to Trident ballistic missile submarines, Minuteman III intercontinental ballistic missiles, and Peacekeeper intercontinental ballistic missiles, respectively, to the extent that the Secretary determines necessary in order to implement the treaty.

    (c) FUNDING LIMITATION ON EARLY DEACTIVATION- (1) If the limitation under paragraphs (2), (3), and (4) of subsection (a) ceases to apply by reason of a waiver under subsection (b), funds available to the Department of Defense may nevertheless not be obligated or expended during fiscal year 1997 to implement any agreement or understanding to undertake substantial early deactivation of a strategic nuclear delivery system specified in subsection (b) until 30 days after the date on which the President submits to Congress a report concerning such actions.

    (2) For purposes of this subsection, a substantial early deactivation is an action during fiscal year 1997 to deactivate a substantial number of strategic nuclear delivery systems specified in subsection (b) by--

      (A) removing nuclear warheads from those systems; or

      (B) taking other steps to remove those systems from combat status.

    (3) A report under this subsection shall include the following:

      (A) The text of any understanding or agreement between the United States and the Russian Federation concerning substantial early deactivation of strategic nuclear delivery systems under the START II Treaty.

      (B) The plan of the Department of Defense for implementing the agreement.

      (C) An assessment of the Secretary of Defense of the adequacy of the provisions contained in the agreement for monitoring and verifying compliance of Russia with the terms of the agreement.

      (D) A determination by the President as to whether the deactivations to occur under the agreement will be carried out in a symmetrical, reciprocal, or equivalent manner.

      (E) An assessment by the President of the effect of the proposed early deactivation on the stability of the strategic balance and relative strategic nuclear capabilities of the United States and the Russian Federation at various stages during deactivation and upon completion.

    (d) START II TREATY DEFINED- For purposes of this section, the term ‘START II Treaty’ means the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms, signed at Moscow on January 3, 1993, including the following protocols and memorandum of understanding, all such documents being integral parts of and collectively referred to as the ‘START II Treaty’ (contained in Treaty Document 103-1):

      (1) The Protocol on Procedures Governing Elimination of Heavy ICBMs and on Procedures Governing Conversion of Silo Launchers of Heavy ICBMs Relating to the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the ‘Elimination and Conversion Protocol’).

      (2) The Protocol on Exhibitions and Inspections of Heavy Bombers Relating to the Treaty Between the United States and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the ‘Exhibitions and Inspections Protocol’).

      (3) The Memorandum of Understanding on Warhead Attribution and Heavy Bomber Data Relating to the Treaty Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the ‘Memorandum on Attribution’).

    (e) RETENTION OF B-52H AIRCRAFT ON ACTIVE STATUS- (1) The Secretary of the Air Force shall maintain in active status (including the performance of standard maintenance and upgrades) the current fleet of B-52H bomber aircraft.

    (2) For purposes of carrying out upgrades of B-52H bomber aircraft during fiscal year 1997, the Secretary shall treat the entire current fleet of such aircraft as aircraft expected to be maintained in active status during the six-year period beginning on October 1, 1996.

SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR PROLIFERATION ACTIVITIES.

    (a) SANCTIONS- Section 2(b)(4) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(4)) is amended to read as follows:

      ‘(4)(A) If the Secretary of State determines that--

        ‘(i) any country that has agreed to International Atomic Energy Agency nuclear safeguards materially violates, abrogates, or terminates, after October 26, 1977, such safeguards;

        ‘(ii) any country that has entered into an agreement for cooperation concerning the civil use of nuclear energy with the United States materially violates, abrogates, or terminates, after October 26, 1977, any guarantee or other undertaking to the United States made in such agreement;

        ‘(iii) any country that is not a nuclear-weapon state detonates, after October 26, 1977, a nuclear explosive device;

        ‘(iv) any country willfully aids or abets, after June 29, 1994, any non-nuclear-weapon state to acquire any such nuclear explosive device or to acquire unsafeguarded special nuclear material; or

        ‘(v) any person knowingly aids or abets, after the date of enactment of the National Defense Authorization Act for Fiscal Year 1997, any non-nuclear-weapon state to acquire any such nuclear explosive device or to acquire unsafeguarded special nuclear material,

      then the Secretary of State shall submit a report to the appropriate committees of the Congress and to the Board of Directors of the Bank stating such determination and identifying each country or person the Secretary determines has so acted.

      ‘(B)(i) If the Secretary of State makes a determination under subparagraph (A)(v) with respect to a foreign person, the Congress urges the Secretary to initiate consultations immediately with the government with primary jurisdiction over that person with respect to the imposition of the prohibition contained in subparagraph (C).

      ‘(ii) In order that consultations with that government may be pursued, the Board of Directors of the Bank shall delay imposition of the prohibition contained in subparagraph (C) for up to 90 days if the Secretary of State requests the Board to make such delay. Following these consultations, the prohibition contained in subparagraph (C) shall apply immediately unless the Secretary determines and certifies to the Congress that that government has taken specific and effective actions, including appropriate penalties, to terminate the involvement of the foreign person in the activities described in subparagraph (A)(v). The Board of Directors of the Bank shall delay the imposition of the prohibition contained in subparagraph (C) for up to an additional 90 days if the Secretary requests the Board to make such additional delay and if the Secretary determines and certifies to the Congress that that government is in the process of taking the actions described in the preceding sentence.

      ‘(iii) Not later than 90 days after making a determination under subparagraph (A)(v), the Secretary of State shall submit to the appropriate committees of the Congress a report on the status of consultations with the appropriate government under this subparagraph, and the

basis for any determination under clause (ii) that such government has taken specific corrective actions.

      ‘(C) The Board of Directors of the Bank shall not give approval to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States exports to any country, or to or by any person, identified in the report described in subparagraph (A).

      ‘(D) The prohibition in subparagraph (C) shall not apply to approvals to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States exports to a country with respect to which a determination is made under clause (i), (ii), (iii), or (iv) of subparagraph (A) regarding any specific event described in such clause if the President determines and certifies in writing to the Congress not less than 45 days prior to the date of the first approval following the determination that it is in the national interest for the Bank to give such approvals.

      ‘(E) The prohibition in subparagraph (C) shall not apply to approvals to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States exports to or by a person with respect to whom a determination is made under clause (v) of subparagraph (A) regarding any specific event described in such clause if--

        ‘(i) the Secretary of State determines and certifies to the Congress that the appropriate government has taken the corrective actions described in subparagraph (B)(ii); or

        ‘(ii) the President determines and certifies in writing to the Congress not less than 45 days prior to the date of the first approval following the determination that--

          ‘(I) reliable information indicates that--

            ‘(aa) such person has ceased to aid or abet any non-nuclear-weapon state to acquire any nuclear explosive device or to acquire unsafeguarded special nuclear material; and

            ‘(bb) steps have been taken to ensure that the activities described in item (aa) will not resume; or

          ‘(II) the prohibition would have a serious adverse effect on vital United States interests.

      ‘(F) For purposes of this paragraph:

        ‘(i) The term ‘country’ has the meaning given to ‘foreign state’ in section 1603(a) of title 28, United States Code.

        ‘(ii) The term ‘knowingly’ is used within the meaning of the term ‘knowing’ in section 104(h)(3) of the Foreign Corrupt Practices Act (15 U.S.C. 78dd-2(h)(3)).

        ‘(iii) The term ‘person’ means a natural person as well as a corporation, business association, partnership, society, trust, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise, and any successor of any such entity.

        ‘(iv) The term ‘nuclear-weapon state’ has the meaning given the term in Article IX(3) of the Treaty on the Non-Proliferation of Nuclear Weapons, signed at Washington, London, and Moscow on July 1, 1968.

        ‘(v) The term ‘non-nuclear-weapon state’ has the meaning given the term in section 830(5) of the Nuclear Proliferation Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).

        ‘(vi) The term ‘nuclear explosive device’ has the meaning given the term in section 830(4) of the Nuclear Proliferation Prevention Act of 1994 (Public Law 103-236; 108 Stat. 521).

        ‘(vii) The term ‘unsafeguarded special nuclear material’ has the meaning given the term in section 830(8) of the Nuclear Proliferation Prevention Act of 1994.’.

    (b) RECOMMENDATIONS TO MAKE NONPROLIFERATION LAWS MORE EFFECTIVE- Not later than 180 days after the date of the enactment of this Act, the President shall submit to the Congress his recommendations on ways to make the laws of the United States more effective in controlling and preventing the proliferation of weapons of mass destruction and missiles. The report shall identify all sources of Government funds used for such nonproliferation activities.

SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO HUMANITARIAN AND CIVIC ASSISTANCE FOR CLEARANCE OF LANDMINES.

    (a) AUTHORITY TO PAY EXPENSES- Section 401(c) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (2) as paragraph (4); and

      (2) by inserting after paragraph (1) the following new paragraphs:

    ‘(2) Expenses covered by paragraph (1) include the following expenses incurred in providing assistance described in subsection (e)(5):

      ‘(A) Travel, transportation, and subsistence expenses of Department of Defense personnel providing such assistance.

      ‘(B) The cost of any equipment, services, or supplies acquired for the purpose of carrying out or supporting the activities described in subsection (e)(5), including any nonlethal, individual, or small-team landmine clearing equipment or supplies that are to be transferred or otherwise furnished to a foreign country in furtherance of the provision of assistance under this section.

    ‘(3) The cost of equipment, services, and supplies provided in any fiscal year under paragraph (2)(B) may not exceed $5,000,000.’.

    (b) COORDINATION WITH OTHER LAWS- Section 401(b) of such title is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

      (2) by adding at the end the following:

    ‘(2) Any authority provided under any other provision of law to provide assistance that is described in subsection (e)(5) to a foreign country shall be carried out in accordance with, and subject to, the limitations prescribed in this section. Any such provision may be construed as superseding a provision of this section only if, and to the extent that, such provision specifically refers to this section and specifically identifies the provision of this section that is to be considered superseded or otherwise inapplicable under such provision.’.

SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE’S REPUBLIC OF CHINA.

    (a) REPORT- The Secretary of Defense shall prepare a report, in both classified and unclassified form, on the future pattern of military modernization of the People’s Republic of China. The report shall address both the probable course of military-technological development in the People’s Liberation Army and the development of Chinese military strategy and operational concepts.

    (b) MATTERS TO BE INCLUDED- The report shall include analyses and forecasts of the following:

      (1) Trends that would lead the People’s Republic of China toward advanced intelligence, surveillance, and reconnaissance capabilities, either through a development program or by gaining access to commercial or third-party systems with militarily significant capabilities.

      (2) Efforts by the People’s Republic of China to develop highly accurate and low-observable ballistic and cruise missiles, and the investments in infrastructure that would allow for production of such weapons in militarily significant quantities, particularly in numbers sufficient to conduct attacks capable of overwhelming projected defense capabilities in the region.

      (3) Development by the People’s Republic of China of enhanced command and control networks, particularly those capable of battle management that would include long-range precision strikes.

      (4) Programs of the People’s Republic of China involving unmanned aerial vehicles, particularly those with extended ranges or loitering times.

      (5) Exploitation by the People’s Republic of China of the Global Positioning System or other similar systems, including commercial land surveillance satellites, for significant military purposes, including particularly for increasing the accuracy of weapons or the situational awareness of operating forces.

      (6) Development by the People’s Republic of China of capabilities for denial of sea control, such as advanced sea mines or improved submarine capabilities.

      (7) Continued development by the People’s Republic of China of follow-on forces, particularly those capable of rapid air or amphibious assault.

    (c) SUBMISSION OF REPORT- The report shall be submitted to Congress not later than February 1, 1997.

SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND POLICIES OF THE PEOPLE’S REPUBLIC OF CHINA.

    (a) FINDINGS- The Congress finds that--

      (1) the People’s Republic of China acceded to the Treaty on the Non-Proliferation of Nuclear Weapons (hereafter in this section referred to as the ‘NPT’) on March 9, 1992;

      (2) the People’s Republic of China is not a member of the Nuclear Suppliers Group and remains the only major nuclear supplier that continues to transfer nuclear technology, equipment, and materials to countries that have not agreed to the application of safeguards of the International Atomic Energy Agency (hereafter in this section referred to as the ‘IAEA’) over all of their nuclear materials;

      (3) on June 30, 1995, the United States and 29 other members of the Nuclear Suppliers Group notified the Director General of the IAEA that the Government of each respective country has decided that the controls of that

Group should not be defeated by the transfer of component parts;

      (4) a state-owned entity in the People’s Republic of China, the China Nuclear Energy Industry Corporation, has knowingly transferred specially designed ring magnets to an unsafeguarded uranium enrichment facility in the Islamic Republic of Pakistan;

      (5) ring magnets are identified on the Trigger List of the Nuclear Suppliers Group as a component of magnetic suspension bearings which are to be exported only to countries that have safeguards of the IAEA over all of their nuclear materials;

      (6) these ring magnets could contribute significantly to the ability of the Islamic Republic of Pakistan to produce additional unsafeguarded enriched uranium, a nuclear explosive material;

      (7) the Government of the People’s Republic of China has transferred nuclear equipment and technology to the Islamic Republic of Iran, despite repeated claims by the Government of the United States that the Islamic Republic of Iran is engaged in clandestine efforts to acquire a nuclear explosive device;

      (8) representatives of the Government of the People’s Republic of China have repeatedly assured the Government of the United States that the People’s Republic of China would abide by the guidelines of the Missile Technology Control Regime (hereafter in this section referred to as the ‘MTCR’);

      (9) the Government of China has transferred M-11 missiles to the Islamic Republic of Pakistan; and

      (10) the M-11 missile conforms to the definition of a nuclear-capable missile under the MTCR.

    (b) SENSE OF THE CONGRESS- It is the sense of the Congress that--

      (1) the assistance that the People’s Republic of China has provided to the Islamic Republic of Iran and to the Islamic Republic of Pakistan could contribute to the ability of such countries to manufacture nuclear weapons;

      (2) the recent transfer by the People’s Republic of China of ring magnets to an unsafeguarded uranium enrichment facility in the Islamic Republic of Pakistan conflicts with China’s obligations under Articles I and III of the NPT, as well as the official nonproliferation policies and assurances by the People’s Republic of China and the Islamic Republic of Pakistan with respect to the nonproliferation of nuclear weapons and nuclear-capable missiles;

      (3) the transfer of M-11 missiles from the People’s Republic of China to the Islamic Republic of Pakistan is inconsistent with longstanding United States Government interpretations of assurances from the Government of the People’s Republic of China with respect to that country’s intent to abide by the guidelines of the MTCR;

      (4) violations by the People’s Republic of China of the standards and objectives of the MTCR and global nuclear nonproliferation regimes have jeopardized the credibility of the MTCR and such regimes;

      (5) the MTCR and global nuclear nonproliferation regimes require collective international action to impose costs against and to withhold benefits from any country, including the People’s Republic of China, that engages in activities that are contrary to the objectives of those regimes;

      (6) the President should explore with the governments of other countries new opportunities for collective action in response to activities of any country, including the People’s Republic of China, that aid or abet the global proliferation of weapons of mass destruction or their means of delivery; and

      (7) the President should communicate to the Government of the People’s Republic of China the sense of the Congress that the stability and growth of future relations between the people, the economies, and the Governments of the United States and the People’s Republic of China will

significantly depend upon substantive evidence of cooperation by the Government of the People’s Republic of China in efforts to halt the global proliferation of weapons of mass destruction and their means of delivery.

    (c) REPORT- Not later than 60 days after the date of the enactment of this Act, the President shall submit to the Congress a report, in both classified and unclassified form, concerning the transfer from the People’s Republic of China to the Islamic Republic of Pakistan of technology, equipment, or materials important to the production of nuclear weapons and their means of delivery. The President shall include in the report the following:

      (1) The specific justification of the Secretary of State for determining that there was not a sufficient basis for imposing sanctions under section 2(b)(4) of the Export-Import Bank Act of 1945, as amended by section 825 of the Nuclear Proliferation Prevention Act of 1994, by reason of the transfer of ring magnets and other technology, equipment, or materials from the People’s Republic of China to the Islamic Republic of Pakistan.

      (2) What commitment the United States Government is seeking from the People’s Republic of China to ensure that the People’s Republic of China establishes a fully effective export control system that will prevent transfers (such as the Pakistan sale) from taking place in the future.

      (3) A description of the pledges, assurances, and other commitments made by representatives of the Governments of the People’s Republic of China and the Islamic Republic of Pakistan to the Government of the United States since January 1, 1991, with respect to the nonproliferation of nuclear weapons or nuclear-capable missiles, and an assessment of the record of compliance with such undertakings.

      (4) Whether, in light of the recent assurances provided by the People’s Republic of China, the President intends to make the certification and submit the report required by section 902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note), and make the certification and submit the report required by Public Law 99-183, relating to the approval and implementation of the agreement for nuclear cooperation between the United States and the People’s Republic of China, and, if not, why not.

      (5) Whether the Secretary of State considers the recent assurances and clarifications provided by the People’s Republic of China to have provided sufficient information to allow the United States to determine that the People’s Republic of China is not in violation of paragraph (2) of section 129 of the Atomic Energy Act of 1954, as required by Public Law 99-183.

      (6) If the President is unable or unwilling to make the certifications and reports referred to in paragraph (4), a description of what the President considers to be the significance of the clarifications and assurances provided by the People’s Republic of China in the course of the recent discussions regarding the transfer by the People’s Republic of China of nuclear-weapon-related equipment to the Islamic Republic of Pakistan.

      (7) A description of the laws, regulations, and procedures currently used by the People’s Republic of China to regulate exports of nuclear technology, equipment, or materials, including dual-use goods, and an assessment of the effectiveness of such arrangements.

      (8) A description of the current policies and practices of other countries in response to the transfer of nuclear and missile technology by the People’s Republic of China to the Islamic Republic of Pakistan and the Islamic Republic of Iran.

SEC. 1307. UNITED STATES-PEOPLE’S REPUBLIC OF CHINA JOINT DEFENSE CONVERSION COMMISSION.

    None of the funds appropriated or otherwise available for the Department of Defense for fiscal year 1997 or any prior fiscal year may be obligated or expended for any activity associated with the United States-People’s Republic of China Joint

Defense Conversion Commission until 15 days after the date on which the first semiannual report required by section 1343 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 487) is received by Congress.

SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

    (a) FINDINGS- The Congress makes the following findings:

      (1) Export controls are a part of a comprehensive response to national security threats. The export of a United States commodity or technology should be restricted in cases in which the export of the commodity or technology would increase the threat to the national security of the United States or would be contrary to the nonproliferation goals or foreign policy interests of the United States.

      (2) The export of certain commodities and technology may adversely affect the national security and foreign policy of the United States by making a significant contribution to the military potential of countries or by enhancing the capability of countries to design, develop, test, produce, stockpile, or use weapons of mass destruction and missile delivery systems, and other significant military capabilities. Therefore, the administration of export controls should emphasize the control of these exports.

      (3) The acquisition of sensitive commodities and technologies by those countries and end users whose actions or policies run counter to United States national security or foreign policy interests may enhance the military capabilities of those countries, particularly their ability to design, develop, test, produce, stockpile, use, and deliver nuclear, chemical, and biological weapons and missile delivery systems, and other significant military capabilities. This enhancement threatens the security of the United States and its allies. The availability to countries and end users of items that contribute to military capabilities or the proliferation of weapons of mass destruction is a fundamental concern of the United States and should be eliminated through deterrence, negotiations, and other appropriate means whenever possible.

      (4) The national security of the United States depends not only on wise foreign policies and a strong defense, but also a vibrant national economy. To be truly effective, export controls should be applied uniformly by all suppliers.

      (5) On November 8, 1995, the President continued the national emergency declared in Executive Order No. 12938 of November 14, 1994, ‘with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the proliferation of nuclear, biological, and chemical weapons and the means of delivering such weapons’.

      (6) A successor regime to COCOM (the Coordinating Committee for Multilateral Export Controls) has not been established. Currently, each nation is determining independently which dual-use military items, if any, will be controlled for export.

      (7) The United States should play a leading role in promoting transparency and responsibility with regard to the transfers of sensitive dual-use goods and technologies.

    (b) SENSE OF CONGRESS- It is the sense of the Congress that--

      (1) establishing an international export control regime, empowered to control exports of dual-use technology, is critically important and should be a top priority for the United States; and

      (2) the United States should strongly encourage its allies and other friendly countries to--

        (A) adopt export controls that are the same or similar to the export controls imposed by the United States on items on the Commerce Control List;

        (B) strengthen enforcement of their export controls; and

        (C) explore the use of unilateral export controls where the possibility exists that an export could contribute to the enhancement of military capabilities or

proliferation described in paragraphs (3) and (5) of subsection (a).

SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

    (a) COMPOSITION OF THE COMMITTEE- Subsection (a) of section 1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by adding at the end the following new paragraph:

    ‘(5) The Assistant to the Secretary of Defense for Nuclear and Chemical and Biological Defense Programs shall serve as executive secretary to the committee.’.

    (b) ADDITIONAL PURPOSE OF THE COMMITTEE- Subsection (b)(1)(A) of such section is amended by inserting ‘and efforts, including efforts to stem the proliferation of weapons of mass destruction and to negate paramilitary and terrorist threats involving weapons of mass destruction’ after ‘counterproliferation policy’.

    (c) FOUR-YEAR EXTENSION OF THE COMMITTEE- Subsection (f) of such section is amended by striking out ‘September 30, 1996’ and inserting in lieu thereof ‘September 30, 2000’.

    (d) REPORTS ON COUNTERPROLIFERATION ACTIVITIES AND PROGRAMS- Section 1503 of the National Defense Authorization Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended--

      (1) in subsection (a)--

        (A) by striking out ‘REPORT REQUIRED- (1) Not later than May 1, 1995 and May 1, 1996, the Secretary’ and inserting in lieu thereof ‘ANNUAL REPORT REQUIRED- Not later than May 1 of each year, the Secretary’; and

        (B) by striking out paragraph (2); and

      (2) by adding at the end the following new subsections:

    ‘(d) REVIEW COMMITTEE CHARTER DEFINED- For purposes of this section, the term ‘Review Committee charter’ means section 1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).

    ‘(e) TERMINATION OF REQUIREMENT- The final report required under subsection (a) is the report for the year following the year in which the Counterproliferation Program Review Committee established under the Review Committee Charter ceases to exist.’.

SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER COUNTRIES TO IMPROVE SECURITY OF FISSILE MATERIAL.

    (a) FINDINGS- Congress finds the following:

      (1) With the end of the Cold War, the world is faced with the need to manage the dismantling of vast numbers of nuclear weapons and the disposition of the fissile materials that they contain.

      (2) If recently agreed reductions in nuclear weapons are fully implemented, tens of thousands of nuclear weapons, containing a hundred tons or more of plutonium and many hundreds of tons of highly enriched uranium, will no longer be needed for military purposes.

      (3) Plutonium and highly enriched uranium are the essential ingredients of nuclear weapons.

      (4) Limits on access to plutonium and highly enriched uranium are the primary technical barrier to acquiring nuclear weapons capability in the world today.

      (5) Several kilograms of plutonium, or several times that amount of highly enriched uranium, are sufficient to make a nuclear weapon.

      (6) Plutonium and highly enriched uranium will continue to pose a potential threat for as long as they exist.

      (7) Action is required to secure and account for plutonium and highly enriched uranium.

      (8) It is in the national interest of the United States to--

        (A) minimize the risk that fissile materials could be obtained by unauthorized parties;

        (B) minimize the risk that fissile materials could be reintroduced into the arsenals from which they came, halting or reversing the arms reduction process; and

        (C) strengthen the national and international control mechanisms and incentives designed to ensure continued arms reductions and prevent the spread of nuclear weapons.

    (b) SENSE OF CONGRESS- In light of the findings contained in subsection (a), it is the sense of Congress that the United States has a national security interest in assisting other countries to improve the security of their stocks of fissile material.

SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF NATIONAL INTELLIGENCE ESTIMATE 95-19.

    (a) REVIEW- The Director of Central Intelligence shall conduct a review of the underlying assumptions and conclusions of the National Intelligence Estimate designated as NIE 95-19 and entitled ‘Emerging Missile Threats to North America During the Next 15 Years’, released by the Director in November 1995.

    (b) METHODOLOGY FOR REVIEW- The Director shall carry out the review under subsection (a) through a panel of independent, nongovernmental individuals with appropriate expertise and experience. Such a panel shall be convened by the Director not later than 45 days after the date of the enactment of this Act.

    (c) REPORT- The Director shall submit the findings resulting from the review under subsection (a), together with any comments of the Director on the review and the findings, to Congress not later than three months after the appointment of the Commission under section 1321.

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

SEC. 1321. ESTABLISHMENT OF COMMISSION.

    (a) ESTABLISHMENT- There is hereby established a commission to be known as the ‘Commission To Assess the Ballistic Missile Threat to the United States’ (hereafter in this subtitle referred to as the ‘Commission’).

    (b) COMPOSITION- The Commission shall be composed of nine members appointed by the Director of Central Intelligence. In selecting individuals for appointment to the Commission, the Director should consult with--

      (1) the Speaker of the House of Representatives concerning the appointment of three of the members of the Commission;

      (2) the majority leader of the Senate concerning the appointment of three of the members of the Commission; and

      (3) the minority leader of the House of Representatives and the minority leader of the Senate concerning the appointment of three of the members of the Commission.

    (c) QUALIFICATIONS- Members of the Commission shall be appointed from among private United States citizens with knowledge and expertise in the political and military aspects of proliferation of ballistic missiles and the ballistic missile threat to the United States.

    (d) CHAIRMAN- The Speaker of the House of Representatives, after consultation with the majority leader of the Senate and the minority leaders of the House of Representatives and the Senate, shall designate one of the members of the Commission to serve as chairman of the Commission.

    (e) PERIOD OF APPOINTMENT; VACANCIES- Members shall be appointed for the life of the Commission. Any vacancy in the Commission shall be filled in the same manner as the original appointment.

    (f) SECURITY CLEARANCES- All members of the Commission shall hold appropriate security clearances.

    (g) INITIAL ORGANIZATION REQUIREMENTS- (1) All appointments to the Commission shall be made not later than 45 days after the date of the enactment of this Act.

    (2) The Commission shall convene its first meeting not later than 30 days after the date as of which all members of the Commission have been appointed, but not earlier than October 15, 1996.

SEC. 1322. DUTIES OF COMMISSION.

    (a) REVIEW OF BALLISTIC MISSILE THREAT- The Commission shall assess the nature and magnitude of the existing and emerging ballistic missile threat to the United States.

    (b) COOPERATION FROM GOVERNMENT OFFICIALS- In carrying out its duties, the Commission should receive the full and timely cooperation of the Secretary of Defense, the Director of Central Intelligence, and any other United States Government official responsible for providing the Commission with analyses, briefings, and other information necessary for the fulfillment of its respon-sibilities.

SEC. 1323. REPORT.

    The Commission shall, not later than six months after the date of its first meeting, submit to the Congress a report on its findings and conclusions.

SEC. 1324. POWERS.

    (a) HEARINGS- The Commission or, at its direction, any panel or member of the Commission, may, for the purpose of carrying out the provisions of this subtitle, hold hearings, sit and act at times and places, take testimony, receive evidence, and administer oaths to the extent that the Commission or any panel or member considers advisable.

    (b) INFORMATION- The Commission may secure directly from the Department of Defense, the Central Intelligence Agency, and any other Federal department or agency information that the Commission considers necessary to enable the Commission to carry out its responsibilities under this subtitle.

SEC. 1325. COMMISSION PROCEDURES.

    (a) MEETINGS- The Commission shall meet at the call of the Chairman.

    (b) QUORUM- (1) Five members of the Commission shall constitute a quorum other than for the purpose of holding hearings.

    (2) The Commission shall act by resolution agreed to by a majority of the members of the Commission.

    (c) COMMISSION- The Commission may establish panels composed of less than full membership of the Commission for the purpose of carrying out the Commission’s duties. The actions of each such panel shall be subject to the review and control of the Commission. Any findings and determinations made by such a panel shall not be considered the findings and determinations of the Commission unless approved by the Commission.

    (d) AUTHORITY OF INDIVIDUALS TO ACT FOR COMMISSION- Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take under this subtitle.

SEC. 1326. PERSONNEL MATTERS.

    (a) PAY OF MEMBERS- Members of the Commission shall serve without pay by reason of their work on the Commission.

    (b) TRAVEL EXPENSES- The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.

    (c) STAFF- (1) The chairman of the Commission may, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, appoint a staff director and such additional personnel as may be necessary to enable the Commission to perform its duties. The appointment of a staff director shall be subject to the approval of the Commission.

    (2) The chairman of the Commission may fix the pay of the staff director and other personnel without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay fixed under this paragraph for the staff director may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title and the rate of pay for other personnel may not exceed the maximum rate payable for grade GS-15 of the General Schedule.

    (d) DETAIL OF GOVERNMENT EMPLOYEES- Upon request of the chairman of the Commission, the head of any Federal department or agency may detail, on a nonreimbursable basis, any personnel of that department or agency to the Commission to assist it in carrying out its duties.

    (e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES- The chairman of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay payable for level V of the Executive Schedule under section 5316 of such title.

SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) POSTAL AND PRINTING SERVICES- The Commission may use the United States mails and obtain printing and binding services in the same manner and under the same conditions as other departments and agencies of the Federal Government.

    (b) MISCELLANEOUS ADMINISTRATIVE AND SUPPORT SERVICES- The Director of Central Intelligence shall furnish the Commission, on a reimbursable basis, any administrative and support services requested by the Commission.

SEC. 1328. FUNDING.

    Funds for activities of the Commission shall be provided from amounts appropriated for the Department of Defense for operation and maintenance for Defense-wide activities for fiscal year 1997. Upon receipt of a written certification from the Chairman of the Commission specifying the funds required for the activities of the Commission, the Secretary of Defense shall promptly disburse to the Commission, from such amounts, the funds required by the Commission as stated in such certification.

SEC. 1329. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of the submission of its report under section 1323.

TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

      Sec. 1401. Short title.

      Sec. 1402. Findings.

      Sec. 1403. Definitions.

Subtitle A--Domestic Preparedness

      Sec. 1411. Response to threats of terrorist use of weapons of mass destruction.

      Sec. 1412. Emergency response assistance program.

      Sec. 1413. Nuclear, chemical, and biological emergency response.

      Sec. 1414. Chemical-biological emergency response team.

      Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological, chemical, and biological weapons.

      Sec. 1416. Military assistance to civilian law enforcement officials in emergency situations involving biological or chemical weapons.

      Sec. 1417. Rapid response information system.

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

      Sec. 1421. Procurement of detection equipment United States border security.

      Sec. 1422. Extension of coverage of International Emergency Economic Powers Act.

      Sec. 1423. Sense of Congress concerning criminal penalties.

      Sec. 1424. International border security.

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

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

      Sec. 1432. Elimination of plutonium production.

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

      Sec. 1441. National Coordinator on Nonproliferation.

      Sec. 1442. National Security Council Committee on Nonproliferation.

      Sec. 1443. Comprehensive preparedness program.

      Sec. 1444. Termination.

Subtitle E--Miscellaneous

      Sec. 1451. Sense of Congress concerning contracting policy.

      Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs.

      Sec. 1453. Sense of Congress concerning assistance to states of former Soviet Union.

      Sec. 1454. Purchase of low-enriched uranium derived from Russian highly enriched uranium.

      Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of fissile materials at risk of theft.

SEC. 1401. SHORT TITLE.

    This title may be cited as the ‘Defense Against Weapons of Mass Destruction Act of 1996’.

SEC. 1402. FINDINGS.

    Congress makes the following findings:

      (1) Weapons of mass destruction and related materials and technologies are increasingly available from worldwide sources. Technical information relating to such weapons is readily available on the Internet, and raw materials for chemical, biological, and radiological weapons are widely available for legitimate commercial purposes.

      (2) The former Soviet Union produced and maintained a vast array of nuclear, biological, and chemical weapons of mass destruction.

      (3) Many of the states of the former Soviet Union retain the facilities, materials, and technologies capable of producing additional quantities of weapons of mass destruction.

      (4) The disintegration of the former Soviet Union was accompanied by disruptions of command and control systems, deficiencies in accountability for weapons, weapons-related materials and technologies, economic hardships, and significant gaps in border control among the states of the former Soviet Union. The problems of organized crime and corruption in the states of the former Soviet Union increase the potential for proliferation of nuclear, radiological, biological, and chemical weapons and related materials.

      (5) The conditions described in paragraph (4) have substantially increased the ability of potentially hostile nations, terrorist groups, and individuals to acquire weapons of mass destruction and related materials and technologies from within the states of the former Soviet Union and from unemployed scientists who worked on those programs.

      (6) As a result of such conditions, the capability of potentially hostile nations and terrorist groups to acquire nuclear, radiological, biological, and chemical weapons is greater than at any time in history.

      (7) The President has identified North Korea, Iraq, Iran, and Libya as hostile states which already possess some weapons of mass destruction and are developing others.

      (8) The acquisition or the development and use of weapons of mass destruction is well within the capability of many extremist and terrorist movements, acting independently or as proxies for foreign states.

      (9) Foreign states can transfer weapons to or otherwise aid extremist and terrorist movements indirectly and with plausible deniability.

      (10) Terrorist groups have already conducted chemical attacks against civilian targets in the United States and Japan, and a radiological attack in Russia.

      (11) The potential for the national security of the United States to be threatened by nuclear, radiological, chemical, or biological terrorism must be taken seriously.

      (12) There is a significant and growing threat of attack by weapons of mass destruction on targets that are not military targets in the usual sense of the term.

      (13) Concomitantly, the threat posed to the citizens of the United States by nuclear, radiological, biological, and chemical weapons delivered by unconventional means is significant and growing.

      (14) Mass terror may result from terrorist incidents involving nuclear, radiological, biological, or chemical materials.

      (15) Facilities required for production of radiological, biological, and chemical weapons are much smaller and harder to detect than nuclear weapons facilities, and biological and chemical weapons can be deployed by alternative delivery means other than long-range ballistic missiles.

      (16) Covert or unconventional means of delivery of nuclear, radiological, biological, and chemical weapons include cargo ships, passenger aircraft, commercial and private vehicles and vessels, and commercial cargo shipments routed through multiple destinations.

      (17) Traditional arms control efforts assume large state efforts with detectable manufacturing programs and weapons production programs, but are ineffective in monitoring and controlling smaller, though potentially more dangerous, unconventional proliferation efforts.

      (18) Conventional counterproliferation efforts would do little to detect or prevent the rapid development of a capability to suddenly manufacture several hundred chemical or biological weapons with nothing but commercial supplies and equipment.

      (19) The United States lacks adequate planning and countermeasures to address the threat of nuclear, radiological, biological, and chemical terrorism.

      (20) The Department of Energy has established a Nuclear Emergency Response Team which is available in case of nuclear or radiological emergencies, but no comparable units exist to deal with emergencies involving biological or chemical weapons or related materials.

      (21) State and local emergency response personnel are not adequately prepared or trained for incidents involving nuclear, radiological, biological, or chemical materials.

      (22) Exercises of the Federal, State, and local response to nuclear, radiological, biological, or chemical terrorism have revealed serious deficiencies in preparedness and severe problems of coordination.

      (23) The development of, and allocation of responsibilities for, effective countermeasures to nuclear, radiological, biological, or chemical terrorism in the United States requires well-coordinated participation of many Federal agencies, and careful planning by the Federal Government and State and local governments.

      (24) Training and exercises can significantly improve the preparedness of State and local emergency response personnel for emergencies involving nuclear, radiological, biological, or chemical weapons or related materials.

      (25) Sharing of the expertise and capabilities of the Department of Defense, which traditionally has provided assistance to Federal, State, and local officials in neutralizing, dis-mantling, and disposing of explosive ordnance, as well as radiological, biological, and chemical materials, can be a vital contribution to the development and deployment of countermeasures against nuclear, biological, and chemical weapons of mass destruction.

      (26) The United States lacks effective policy coordination regarding the threat posed by the proliferation of weapons of mass destruction.

SEC. 1403. DEFINITIONS.

    In this title:

      (1) The term ‘weapon of mass destruction’ means any weapon or device that is intended, or has the capability, to cause death or serious bodily injury to a significant number of people through the release, dissemination, or impact of--

        (A) toxic or poisonous chemicals or their precursors;

        (B) a disease organism; or

        (C) radiation or radioactivity.

      (2) The term ‘independent states of the former Soviet Union’ has the meaning given that term in section 3 of the FREEDOM Support Act (22 U.S.C. 5801).

      (3) The term ‘highly enriched uranium’ means uranium enriched to 20 percent or more in the isotope U-235.

Subtitle A--Domestic Preparedness

SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS DESTRUCTION.

    (a) ENHANCED RESPONSE CAPABILITY- In light of the potential for terrorist use of weapons of mass destruction against the United States, the President shall take immediate action--

      (1) to enhance the capability of the Federal Government to prevent and respond to terrorist incidents involving weapons of mass destruction; and

      (2) to provide enhanced support to improve the capabilities of State and local emergency response agencies to prevent and respond to such incidents at both the national and the local level.

    (b) REPORT REQUIRED- Not later than January 31, 1997, the President shall transmit to Congress a report containing--

      (1) an assessment of the capabilities of the Federal Government to prevent and respond to terrorist incidents involving weapons of mass destruction and to support State and local prevention and response efforts;

      (2) requirements for improvements in those cap-abilities; and

      (3) the measures that should be taken to achieve such improvements, including additional resources and legislative authorities that would be required.

SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

    (a) PROGRAM REQUIRED- (1) The Secretary of Defense shall carry out a program to provide civilian personnel of Federal, State, and local agencies with training and expert advice regarding emergency responses to a use or threatened use of a weapon of mass destruction or related materials.

    (2) The President may designate the head of an agency other than the Department of Defense to assume the responsibility for carrying out the program on or after October 1, 1999, and relieve the Secretary of Defense of that responsibility upon the assumption of the responsibility by the designated official.

    (3) In this section, the official responsible for carrying out the program is referred to as the ‘lead official’.

    (b) COORDINATION- In carrying out the program, the lead official shall coordinate with each of the following officials who is not serving as the lead official:

      (1) The Director of the Federal Emergency Management Agency.

      (2) The Secretary of Energy.

      (3) The Secretary of Defense.

      (4) The heads of any other Federal, State, and local government agencies that have an expertise or responsibilities relevant to emergency responses described in subsection (a)(1).

    (c) ELIGIBLE PARTICIPANTS- The civilian personnel eligible to receive assistance under the program are civilian personnel of Federal, State, and local agencies who have emergency preparedness responsibilities.

    (d) INVOLVEMENT OF OTHER FEDERAL AGENCIES- (1) The lead official may use personnel and capabilities of Federal agencies outside the agency of the lead official to provide training and expert advice under the program.

    (2)(A) Personnel used under paragraph (1) shall be personnel who have special skills relevant to the particular assistance that the personnel are to provide.

    (B) Capabilities used under paragraph (1) shall be capabilities that are especially relevant to the particular assistance for which the capabilities are used.

    (3) If the lead official is not the Secretary of Defense, and requests assistance from the Department of Defense that, in the judgment of the Secretary of Defense would affect military readiness or adversely affect national security, the Secretary of Defense may appeal the request for Department of Defense assistance by the lead official to the President.

    (e) AVAILABLE ASSISTANCE- Assistance available under this program shall include the following:

      (1) Training in the use, operation, and maintenance of equipment for--

        (A) detecting a chemical or biological agent or nuclear radiation;

        (B) monitoring the presence of such an agent or radiation;

        (C) protecting emergency personnel and the public; and

        (D) decontamination.

      (2) Establishment of a designated telephonic link (commonly referred to as a ‘hot line’) to a designated source of relevant data and expert advice for the use of State or local officials responding to emergencies involving a weapon of mass destruction or related materials.

      (3) Use of the National Guard and other reserve components for purposes authorized under this section that are specified by the lead official (with the concurrence of the Secretary of Defense if the Secretary is not the lead official).

      (4) Loan of appropriate equipment.

    (f) LIMITATIONS ON DEPARTMENT OF DEFENSE ASSISTANCE TO LAW ENFORCEMENT AGENCIES- Assistance provided by the Department of Defense to law enforcement agencies under this section shall be provided under the authority of, and subject to the restrictions provided in, chapter 18 of title 10, United States Code.

    (g) ADMINISTRATION OF DEPARTMENT OF DEFENSE ASSISTANCE- The Secretary of Defense shall designate an official within the Department of Defense to serve as the executive agent of the Secretary for the coordination of the provision of Department of Defense assistance under this section.

    (h) FUNDING- (1) Of the total amount authorized to be appropriated under section 301, $35,000,000 is available for the program required under this section.

    (2) Of the amount available for the program pursuant to paragraph (1), $10,500,000 is available for use by the Secretary of Defense to assist the Secretary of Health and Human Services in the establishment of metropolitan emergency medical response teams (commonly referred to as ‘Metropolitan Medical Strike Force Teams’) to provide medical services that are necessary or potentially necessary by reason of a use or threatened use of a weapon of mass destruction.

    (3) The amount available for the program under paragraph (1) is in addition to any other amounts authorized to be appropriated for the program under section 301.

SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY RESPONSE.

    (a) DEPARTMENT OF DEFENSE- The Secretary of Defense shall designate an official within the Department of Defense as the executive agent for--

      (1) the coordination of Department of Defense assistance to Federal, State, and local officials in responding to threats involving biological or chemical weapons or related materials or technologies, including assistance in identifying, neutralizing, dismantling, and disposing of biological and chemical weapons and related materials and technologies; and

      (2) the coordination of Department of Defense assistance to the Department of Energy in carrying out that department’s responsibilities under subsection (b).

    (b) DEPARTMENT OF ENERGY- The Secretary of Energy shall designate an official within the Department of Energy as the executive agent for--

      (1) the coordination of Department of Energy assistance to Federal, State, and local officials in responding to threats involving nuclear, chemical, and biological weapons or related materials or technologies, including assistance in identifying, neutralizing, dismantling, and disposing of nuclear weapons and related materials and technologies; and

      (2) the coordination of Department of Energy assistance to the Department of Defense in carrying out that department’s responsibilities under subsection (a).

    (c) FUNDING- Of the total amount authorized to be appropriated under section 301, $15,000,000 is available for providing assistance described in subsection (a).

SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.

    (a) DEPARTMENT OF DEFENSE RAPID RESPONSE TEAM- The Secretary of Defense shall develop and maintain at least one domestic terrorism rapid response team composed of members of the Armed Forces and employees of the Department of Defense who are capable of aiding Federal, State, and local officials in the detection, neutralization, containment, dismantlement, and disposal of weapons of mass destruction containing chemical, biological, or related materials.

    (b) ADDITION TO FEDERAL RESPONSE PLAN- Not later than December 31, 1997, the Director of the Federal Emergency Management Agency shall develop and incorporate into existing Federal emergency response plans and programs prepared under section 611(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on the use and deployment of the rapid response teams established under this section to respond to emergencies involving weapons of mass destruction. The Director shall carry out this subsection in consultation with the Secretary of Defense and the heads of other Federal agencies involved with the emergency response plans.

SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL WEAPONS.

    (a) EMERGENCIES INVOLVING CHEMICAL OR BIOLOGICAL WEAPONS- (1) The Secretary of Defense shall develop and carry out a program for testing and improving the responses of Federal, State, and local agencies to emergencies involving biological weapons and related materials and emergencies involving chemical weapons and related materials.

    (2) The program shall include exercises to be carried out during each of five successive fiscal years beginning with fiscal year 1997.

    (3) In developing and carrying out the program, the Secretary shall coordinate with the Director of the Federal Bureau of Investigation, the Director of the Federal Emergency Management Agency, the Secretary of Energy, and the heads of any other Federal, State, and local government agencies that have an expertise or responsibilities relevant to emergencies described in paragraph (1).

    (b) EMERGENCIES INVOLVING NUCLEAR AND RADIOLOGICAL WEAPONS- (1) The Secretary of Energy shall develop and carry out a program for testing and improving the responses of Federal, State, and local agencies to emergencies involving nuclear and radiological weapons and related materials.

    (2) The program shall include exercises to be carried out during each of five successive fiscal years beginning with fiscal year 1997.

    (3) In developing and carrying out the program, the Secretary shall coordinate with the Director of the Federal Bureau of Investigation, the Director of the Federal Emergency Management Agency, the Secretary of Defense, and the heads of any other Federal, State, and local government agencies that have an expertise or responsibilities relevant to emergencies described in paragraph (1).

    (c) ANNUAL REVISIONS OF PROGRAMS- The official responsible for carrying out a program developed under subsection (a) or (b) shall revise the program not later than June 1 in each fiscal year covered by the program. The revisions shall include adjustments that the official determines necessary or appropriate on the basis of the lessons learned from the exercise or exercises carried out under the program in the fiscal year, including lessons learned regarding coordination problems and equipment deficiencies.

    (d) OPTION TO TRANSFER RESPONSIBILITY- (1) The President may designate the head of an agency outside the Department of Defense to assume the responsibility for carrying out the program developed under subsection (a) beginning on or after October 1, 1999, and relieve the Secretary of Defense of that responsibility upon the assumption of the responsibility by the designated official.

    (2) The President may designate the head of an agency outside the Department of Energy to assume the responsibility for carrying out the program developed under subsection (b) beginning on or after October 1, 1999, and relieve the Secretary of Energy of that responsibility upon the assumption of the responsibility by the designated official.

    (e) FUNDING- Of the total amount authorized to be appropriated under section 301, $15,000,000 is available for the

development and execution of the programs required by this section, including the participation of State and local agencies in exercises carried out under the programs.

SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT OFFICIALS IN EMERGENCY SITUATIONS INVOLVING BIOLOGICAL OR CHEMICAL WEAPONS.

    (a) ASSISTANCE AUTHORIZED- (1) Chapter 18 of title 10, United States Code, is amended by adding at the end the following new section:

-‘Sec. 382. Emergency situations involving chemical or biological weapons of mass destruction

    ‘(a) IN GENERAL- The Secretary of Defense, upon the request of the Attorney General, may provide assistance in support of Department of Justice activities relating to the enforcement of section 175 or 2332c of title 18 during an emergency situation involving a biological or chemical weapon of mass destruction. Department of Defense resources, including personnel of the Department of Defense, may be used to provide such assistance if--

      ‘(1) the Secretary of Defense and the Attorney General jointly determine that an emergency situation exists; and

      ‘(2) the Secretary of Defense determines that the provision of such assistance will not adversely affect the military preparedness of the United States.

    ‘(b) EMERGENCY SITUATIONS COVERED- In this section, the term ‘emergency situation involving a biological or chemical weapon of mass destruction’ means a circumstance involving a biological or chemical weapon of mass destruction--

      ‘(1) that poses a serious threat to the interests of the United States; and

      ‘(2) in which--

        ‘(A) civilian expertise and capabilities are not readily available to provide the required assistance to counter the threat immediately posed by the weapon involved;

        ‘(B) special capabilities and expertise of the Department of Defense are necessary and critical to counter the threat posed by the weapon involved; and

        ‘(C) enforcement of section 175 or 2332c of title 18 would be seriously impaired if the Department of Defense assistance were not provided.

    ‘(c) FORMS OF ASSISTANCE- The assistance referred to in subsection (a) includes the operation of equipment (including equipment made available under section 372 of this title) to monitor, contain, disable, or dispose of the weapon involved or elements of the weapon.

    ‘(d) REGULATIONS- (1) The Secretary of Defense and the Attorney General shall jointly prescribe regulations concerning the types of assistance that may be provided under this section. Such regulations shall also describe the actions that Department of Defense personnel may take in circumstances incident to the provision of assistance under this section.

    ‘(2)(A) Except as provided in subparagraph (B), the regulations may not authorize the following actions:

      ‘(i) Arrest.

      ‘(ii) Any direct participation in conducting a search for or seizure of evidence related to a violation of section 175 or 2332c of title 18.

      ‘(iii) Any direct participation in the collection of intelligence for law enforcement purposes.

    ‘(B) The regulations may authorize an action described in subparagraph (A) to be taken under the following conditions:

      ‘(i) The action is considered necessary for the immediate protection of human life, and civilian law enforcement officials are not capable of taking the action.

      ‘(ii) The action is otherwise authorized under subsection (c) or under otherwise applicable law.

    ‘(e) REIMBURSEMENTS- The Secretary of Defense shall require reimbursement as a condition for providing assistance under this section to the extent required under section 377 of this title.

    ‘(f) DELEGATIONS OF AUTHORITY- (1) Except to the extent otherwise provided by the Secretary of Defense, the Deputy Secretary of Defense may exercise the authority of the Secretary of Defense under this section. The Secretary of Defense may delegate the Secretary’s authority under this section only to an Under Secretary of Defense or an Assistant Secretary of Defense and only if the Under Secretary or Assistant Secretary to whom delegated has been designated by the Secretary to act for, and to exercise the general powers of, the Secretary.

    ‘(2) Except to the extent otherwise provided by the Attorney General, the Deputy Attorney General may exercise the authority of the Attorney General under this section. The Attorney General may delegate that authority only to the Associate Attorney General or an Assistant Attorney General and only if the Associate Attorney General or Assistant Attorney General to whom delegated has been designated by the Attorney General to act for, and to exercise the general powers of, the Attorney General.

    ‘(g) RELATIONSHIP TO OTHER AUTHORITY- Nothing in this section shall be construed to restrict any executive branch authority regarding use of members of the armed forces or equipment of the Department of Defense that was in effect before the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997.’.

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

‘382. Emergency situations involving chemical or biological weapons of mass destruction.’.

    (b) CONFORMING AMENDMENT TO CONDITION FOR PROVIDING EQUIPMENT AND FACILITIES- Section 372(b)(1) of title 10, United States Code, is amended by adding at the end the following new sentence: ‘The requirement for a determination that an item is not reasonably available from another source does not apply to assistance provided under section 382 of this title pursuant to a request of the Attorney General for the assistance.’.

    (c) CONFORMING AMENDMENTS RELATING TO AUTHORITY TO REQUEST ASSISTANCE- (1)(A) Chapter 10 of title 18, United States Code, is amended by inserting after section 175 the following new section:

‘Sec. 175a. Requests for military assistance to enforce prohibition in certain emergencies

    ‘The Attorney General may request the Secretary of Defense to provide assistance under section 382 of title 10 in support of Department of Justice activities relating to the enforcement of section 175 of this title in an emergency situation involving a biological weapon of mass destruction. The authority to make such a request may be exercised by another official of the Department of Justice in accordance with section 382(f)(2) of title 10.’.

    (B) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 175 the following new item:

      ‘175a. Requests for military assistance to enforce prohibition in certain emergencies.’.

    (2)(A) The chapter 133B of title 18, United States Code, that relates to terrorism is amended by inserting after section 2332c the following new section:

‘Sec. 2332d. Requests for military assistance to enforce prohibition in certain emergencies

    ‘The Attorney General may request the Secretary of Defense to provide assistance under section 382 of title 10 in support of Department of Justice activities relating to the enforcement of section 2332c of this title during an emergency situation involving a chemical weapon of mass destruction. The authority to make such a request may be exercised by another official of the Department of Justice in accordance with section 382(f)(2) of title 10.’.

    (B) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2332c the following new item:

‘2332d. Requests for military assistance to enforce prohibition in certain emergencies.’.

    (d) CIVILIAN EXPERTISE- The President shall take reasonable measures to reduce the reliance of civilian law enforcement officials on Department of Defense resources to counter the threat posed by the use or potential use of biological and chemical weapons of mass destruction within the United States. The measures shall include--

      (1) actions to increase civilian law enforcement expertise to counter such a threat; and

      (2) actions to improve coordination between civilian law enforcement officials and other civilian sources of expertise, within and outside the Federal Government, to counter such a threat.

    (e) REPORTS- The President shall submit to Congress the following reports:

      (1) Not later than 90 days after the date of the enactment of this Act, a report describing the respective policy functions and operational roles of Federal agencies in countering the threat posed by the use or potential use of biological and chemical weapons of mass destruction within the United States.

      (2) Not later than one year after such date, a report describing--

        (A) the actions planned to be taken to carry out subsection (d); and

        (B) the costs of such actions.

      (3) Not later than three years after such date, a report updating the information provided in the reports submitted pursuant to paragraphs (1) and (2), including the measures taken pursuant to subsection (d).

SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

    (a) INVENTORY OF RAPID RESPONSE ASSETS- (1) The head of each Federal Response Plan agency shall develop and maintain an inventory of physical equipment and assets under the jurisdiction of that agency that could be made available to aid State and local officials in search and rescue and other disaster management and mitigation efforts associated with an emergency involving weapons of mass destruction. The agency head shall submit a copy of the inventory, and any updates of the inventory, to the Director of the Federal Emergency Management Agency for inclusion in the master inventory required under subsection (b).

    (2) Each inventory shall include a separate listing of any equipment that is excess to the needs of that agency and could be considered for disposal as excess or surplus property for use for response and training with regard to emergencies involving weapons of mass destruction.

    (b) MASTER INVENTORY- The Director of the Federal Emergency Management Agency shall compile and maintain a comprehensive listing of all inventories prepared under subsection (a). The first such master list shall be completed not later than December 31, 1997, and shall be updated annually thereafter.

    (c) ADDITION TO FEDERAL RESPONSE PLAN- Not later than December 31, 1997, the Director of the Federal Emergency Management Agency shall develop and incorporate into existing Federal emergency response plans and programs prepared under section 611(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on accessing and using the physical equipment and assets included in the master list developed under subsection to respond to emergencies involving weapons of mass destruction.

    (d) DATABASE ON CHEMICAL AND BIOLOGICAL MATERIALS- The Director of the Federal Emergency Management Agency, in consultation with the Secretary of Defense, shall prepare a database on chemical and biological agents and munitions characteristics and safety precautions for civilian use. The initial design and compilation of the database shall be completed not later than December 31, 1997.

    (e) ACCESS TO INVENTORY AND DATABASE- The Director of the Federal Emergency Management Agency shall design and maintain a system to give Federal, State, and local officials access to the inventory listing and database maintained under this section in the event of an emergency involving weapons of mass destruction or to prepare and train to respond to such

an emergency. The system shall include a secure but accessible emergency response hotline to access information and request assistance.

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

SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT UNITED STATES BORDER SECURITY.

    Of the amount authorized to be appropriated by section 301, $15,000,000 is available for the procurement of--

      (1) equipment capable of detecting the movement of weapons of mass destruction and related materials into the United States;

      (2) equipment capable of interdicting the movement of weapons of mass destruction and related materials into the United States; and

      (3) materials and technologies related to use of equipment described in paragraph (1) or (2).

SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.

    Section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) is amended--

      (1) in subsection (a), by inserting ‘, or attempts to violate,’ after ‘violates’; and

      (2) in subsection (b), by inserting ‘, or willfully attempts to violate,’ after ‘violates’.

SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

    (a) SENSE OF CONGRESS CONCERNING INADEQUACY OF SENTENCING GUIDELINES- It is the sense of Congress that the sentencing guidelines prescribed by the United States Sentencing Commission for the offenses of importation, attempted importation, exportation, and attempted exportation of nuclear, biological, and chemical weapons materials constitute inadequate punishment for such offenses.

    (b) URGING OF REVISON TO GUIDELINES- Congress urges the United States Sentencing Commission to revise the relevant sentencing guidelines to provide for increased penalties for offenses relating to importation, attempted importation, exportation, and attempted exportation of nuclear, biological, or chemical weapons or related materials or technologies under the following provisions of law:

      (1) Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 2410).

      (2) Sections 38 and 40 of the Arms Export Control Act (22 U.S.C. 2778 and 2780).

      (3) The International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

      (4) Section 309(c) of the Nuclear Non-Proliferation Act of 1978 (22 U.S.C. 2156a(c)).

SEC. 1424. INTERNATIONAL BORDER SECURITY.

    (a) SECRETARY OF DEFENSE RESPONSIBILITY- The Secretary of Defense, in consultation and cooperation with the Commissioner of Customs, shall carry out programs for assisting customs officials and border guard officials in the independent states of the former Soviet Union, the Baltic states, and other countries of Eastern Europe in preventing unauthorized transfer and transportation of nuclear, biological, and chemical weapons and related materials. Training, expert advice, maintenance of equipment, loan of equipment, and audits may be provided under or in connection with the programs.

    (b) FUNDING- Of the total amount authorized to be appropriated by section 301, $15,000,000 is available for carrying out the programs referred to in subsection (a).

    (c) ASSISTANCE TO STATES OF THE FORMER SOVIET UNION- Assistance under programs referred to in subsection (a) may (notwithstanding any provision of law prohibiting the extension of foreign assistance to any of the newly independent states of the former Soviet Union) be extended to include an independent state of the former Soviet Union if the President certifies to Congress that it is in the national interest of the United States to extend assistance under this section to that state.

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

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN COOPERATIVE THREAT REDUCTION PROGRAMS ON ELIMINATION OR TRANSPORTATION OF NUCLEAR WEAPONS.

    Section 1201(b)(1) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 U.S.C. 5955 note) is amended by inserting ‘, fissile material suitable for use in nuclear weapons,’ after ‘other weapons’.

SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

    (a) REPLACEMENT PROGRAM- The Secretary of Energy, in consultation with the Secretary of Defense, shall develop a cooperative program with the Government of Russia to eliminate the production of weapons grade plutonium by modifying or replacing the reactor cores at Tomsk-7 and Krasnoyarsk-26 with reactor cores that are less suitable for the production of weapons-grade plutonium.

    (b) PROGRAM REQUIREMENTS- (1) The program shall be designed to achieve completion of the modifications or replacements of the reactor cores within three years after the modification or replacement activities under the program are begun.

    (2) The plan for the program shall--

      (A) specify--

        (i) successive steps for the modification or replacement of the reactor cores; and

        (ii) clearly defined milestones to be achieved; and

      (B) include estimates of the costs of the program.

    (c) SUBMISSION OF PROGRAM PLAN TO CONGRESS- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress--

      (1) a plan for the program under subsection (a);

      (2) an estimate of the United States funding that is necessary for carrying out the activities under the program for each fiscal year covered by the program; and

      (3) a comparison of the benefits of the program with the benefits of other nonproliferation programs.

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

SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

    (a) DESIGNATION OF POSITION- The President shall designate an individual to serve in the Executive Office of the President as the National Coordinator for Nonproliferation Matters.

    (b) DUTIES- The Coordinator, under the direction of the National Security Council, shall advise and assist the President by--

      (1) advising the President on nonproliferation of weapons of mass destruction, including issues related to terrorism, arms control, and international organized crime;

      (2) chairing the Committee on Nonproliferation established under section 1342; and

      (3) taking such actions as are necessary to ensure that there is appropriate emphasis in, cooperation on, and coordination of, nonproliferation research efforts of the United States, including activities of Federal agencies as well as activities of contractors funded by the Federal Government.

    (c) ALLOCATION OF FUNDS- Of the total amount authorized to be appropriated under section 301, $2,000,000 is available to the Department of Defense for carrying out research referred to in subsection (b)(3).

SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.

    (a) ESTABLISHMENT- The Committee on Nonproliferation (in this section referred to as the ‘Committee’) is established as a committee of the National Security Council.

    (b) MEMBERSHIP- (1) The Committee shall be composed of representatives of the following:

      (A) The Secretary of State.

      (B) The Secretary of Defense.

      (C) The Director of Central Intelligence.

      (D) The Attorney General.

      (E) The Secretary of Energy.

      (F) The Administrator of the Federal Emergency Management Agency.

      (G) The Secretary of the Treasury.

      (H) The Secretary of Commerce.

      (I) Such other members as the President may designate.

    (2) The National Coordinator for Nonproliferation Matters shall chair the Committee on Nonproliferation.

    (c) RESPONSIBILITIES- The Committee has the following responsibilities:

      (1) To review and coordinate Federal programs, policies, and directives relating to the proliferation of weapons of mass destruction and related materials and technologies, including matters relating to terrorism and international organized crime.

      (2) To make recommendations through the National Security Council to the President regarding the following:

        (A) Integrated national policies for countering the threats posed by weapons of mass destruction.

        (B) Options for integrating Federal agency budgets for countering such threats.

        (C) Means to ensure that Federal, State, and local governments have adequate capabilities to manage crises involving nuclear, radiological, biological, or chemical weapons or related materials or technologies, and to manage the consequences of a use of such weapon or related materials or technologies, and that use of those capabilities is coordinated.

        (D) Means to ensure appropriate cooperation on, and coordination of, the following:

          (i) Preventing the smuggling of weapons of mass destruction and related materials and technologies.

          (ii) Promoting domestic and international law enforcement efforts against proliferation-related efforts.

          (iii) Countering the involvement of organized crime groups in proliferation-related activities.

          (iv) Safeguarding weapons of mass destruction materials and related technologies.

          (v) Improving coordination and cooperation among intelligence activities, law enforcement, and the Departments of Defense, State, Commerce, and Energy in support of nonproliferation and counterproliferation efforts.

          (vi) Improving export controls over materials and technologies that can contribute to the acquisition of weapons of mass destruction.

          (vii) Reducing proliferation of weapons of mass destruction and related materials and technologies.

SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

    (a) PROGRAM REQUIRED- The President, acting through the Committee on Nonproliferation established under section 1442, shall develop a comprehensive program for carrying out this title.

    (b) CONTENT OF PROGRAM- The program set forth in the report shall include specific plans as follows:

      (1) Plans for countering proliferation of weapons of mass destruction and related materials and technologies.

      (2) Plans for training and equipping Federal, State, and local officials for managing a crisis involving a use or

threatened use of a weapon of mass destruction, including the consequences of the use of such a weapon.

      (3) Plans for providing for regular sharing of information among intelligence, law enforcement, and customs agencies.

      (4) Plans for training and equipping law enforcement units, customs services, and border security personnel to counter the smuggling of weapons of mass destruction and related materials and technologies.

      (5) Plans for establishing appropriate centers for analyzing seized nuclear, radiological, biological, and chemical weapons, and related materials and technologies.

      (6) Plans for establishing in the United States appropriate legal controls and authorities relating to the exporting of nuclear, radiological, biological, and chemical weapons, and related materials and technologies.

      (7) Plans for encouraging and assisting governments of foreign countries to implement and enforce laws that set forth appropriate penalties for offenses regarding the smuggling of weapons of mass destruction and related materials and technologies.

      (8) Plans for building the confidence of the United States and Russia in each other’s controls over United States and Russian nuclear weapons and fissile materials, including plans for verifying the dismantlement of nuclear weapons.

      (9) Plans for reducing United States and Russian stockpiles of excess plutonium, reflecting--

        (A) consideration of the desirability and feasibility of a United States-Russian agreement governing fissile material disposition and the specific technologies and approaches to be used for disposition of excess plutonium; and

        (B) an assessment of the options for United States cooperation with Russia in the disposition of Russian plutonium.

      (10) Plans for studying the merits and costs of establishing a global network of means for detecting and responding to terroristic or other criminal use of biological agents against people or other forms of life in the United States or any foreign country.

    (c) REPORT- (1) At the same time that the President submits the budget for fiscal year 1998 to Congress pursuant to section 1105(a) of title 31, United States Code, the President shall submit to Congress a report that sets forth the comprehensive program developed under subsection (a).

    (2) The report shall include the following:

      (A) The specific plans for the program that are required under subsection (b).

      (B) Estimates of the funds necessary, by agency or department, for carrying out such plans in fiscal year 1998 and the following five fiscal years.

    (3) The report shall be in an unclassified form. If there is a classified version of the report, the President shall submit the classified version at the same time.

SEC. 1444. TERMINATION.

    After September 30, 1999, the President--

      (1) is not required to maintain a National Coordinator for Nonproliferation Matters under section 1341; and

      (2) may terminate the Committee on Nonproliferation established under section 1342.

Subtitle E--Miscellaneous

SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

    It is the sense of Congress that the Secretary of Defense, the Secretary of Energy, the Secretary of the Treasury, and the Secretary of State, to the extent authorized by law, should--

      (1) contract directly with suppliers in independent states of the former Soviet Union when such action would--

        (A) result in significant savings of the programs referred to in subtitle C; and

        (B) substantially expedite completion of the programs referred to in subtitle C; and

      (2) seek means to use innovative contracting approaches to avoid delay and increase the effectiveness of such programs and of the exercise of such authorities.

SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT REDUCTION PROGRAMS.

    Congress finds that--

      (1) the various Cooperative Threat Reduction programs are being carried out at different rates in the various countries covered by such programs; and

      (2) it is necessary to authorize transfers of funding allocations among the various programs in order to maximize the effectiveness of United States efforts under such programs.

SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO STATES OF FORMER SOVIET UNION.

    It is the sense of Congress that--

      (1) the Cooperative Threat Reduction programs and other United States programs authorized in the National Defense Authorization Act for Fiscal Years 1993 and 1994 should be expanded by offering assistance under those programs to other independent states of the former Soviet Union in addition to Russia, Ukraine, Kazakstan, and Belarus; and

      (2) the President should offer assistance to additional independent states of the former Soviet Union in each case in which the participation of such states would benefit national security interests of the United States by improving border controls and safeguards over materials and technology associated with weapons of mass destruction.

SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM RUSSIAN HIGHLY ENRICHED URANIUM.

    (a) SENSE OF CONGRESS- It is the sense of Congress that the allies of the United States and other nations should participate in efforts to ensure that stockpiles of weapons-grade nuclear material are reduced.

    (b) ACTIONS BY THE SECRETARY OF STATE- Congress urges the Secretary of State to encourage, in consultation with the Secretary of Energy, other countries to purchase low-enriched uranium that is derived from highly enriched uranium extracted from Russian nuclear weapons.

SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, AND TRANSPORTATION OF FISSILE MATERIALS AT RISK OF THEFT.

    It is the sense of Congress that--

      (1) the Secretary of Defense, the Secretary of Energy, the Secretary of the Treasury, and the Secretary of State should purchase, package, and transport to secure locations weapons-grade nuclear materials from a stockpile of such materials if such officials determine that--

        (A) there is a significant risk of theft of such materials; and

        (B) there is no reasonable and economically feasible alternative for securing such materials; and

      (2) if it is necessary to do so in order to secure the materials, the materials should be imported into the United States, subject to the laws and regulations that are applicable to the importation of such materials into the United States.

TITLE XV--COOPERATIVE THREAT RE-DUCTION WITH STATES OF FORMER SOVIET UNION

      Sec. 1501. Specification of Cooperative Threat Reduction programs.

      Sec. 1502. Fiscal year 1997 funding allocations.

      Sec. 1503. Prohibition on use of funds for specified purposes.

      Sec. 1504. Limitation on use of funds until specified reports are submitted.

      Sec. 1505. Availability of funds.

SEC. 1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) IN GENERAL- For purposes of section 301 and other provisions of this Act, Cooperative Threat Reduction programs are the programs specified in subsection (b).

    (b) SPECIFIED PROGRAMS- The programs referred to in subsection (a) are the following programs with respect to states of the former Soviet Union:

      (1) Programs to facilitate the elimination, and the safe and secure transportation and storage, of nuclear, chemical, and other weapons and their delivery vehicles.

      (2) Programs to facilitate the safe and secure storage of fissile materials derived from the elimination of nuclear weapons.

      (3) Programs to prevent the proliferation of weapons, weapons components, and weapons-related technology and expertise.

      (4) Programs to expand military-to-military and defense contacts.

SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

    (a) IN GENERAL- Of the amount appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs, not more than the following amounts may be obligated for the purposes specified:

      (1) For planning and design of a chemical weapons destruction facility in Russia, $78,500,000.

      (2) For elimination of strategic offensive arms in Russia, $52,000,000.

      (3) For strategic nuclear arms elimination in Ukraine, $47,000,000.

      (4) For planning and design of a storage facility for Russian fissile material, $66,000,000.

      (5) For fissile material containers in Russia, $38,500,000.

      (6) For weapons storage security in Russia, $15,000,000.

      (7) For activities designated as Defense and Military-to-Military Contacts in Russia, Ukraine, Belarus, and Kazakhstan, $10,000,000.

      (8) For activities designated as Other Assessments/Administrative Support, $20,900,000.

      (9) For materials protection, control, and accounting assistance or for destruction of nuclear, radiological, biological, or chemical weapons or related materials at any site within the former Soviet Union, $10,000,000.

      (10) For transfer to the Secretary of Energy to develop a cooperative program with the Government of Russia to eliminate the production of weapons grade plutonium at Russian reactors, $10,000,000.

      (11) For dismantlement of biological and chemical weapons facilities in the former Soviet Union, $15,000,000.

      (12) For expanding military-to-military programs of the United States that focus on countering the threat of proliferation of weapons of mass destruction to include the security forces of the independent states of the former Soviet Union, particularly states in the Caucasus region and Central Asia, $2,000,000.

    (b) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS- (1) If the Secretary of Defense determines that it is necessary to do so in the national interest, the Secretary may, subject to paragraph (2), obligate amounts for the purposes stated in any of the paragraphs of subsection (a) in excess of the amount specified for those purposes in that paragraph, but not in excess of 115 percent of that amount. However, the total amount obligated for the purposes stated in the

paragraphs in subsection (a) may not by reason of the use of the authority provided in the preceding sentence exceed the sum of the amounts specified in those paragraphs.

    (2) An obligation for the purposes stated in any of the paragraphs in subsection (a) in excess of the amount specified in that paragraph may be made using the authority provided in paragraph (1) only after--

      (A) the Secretary submits to Congress a notification of the intent to do so together with a complete discussion of the justification for doing so; and

      (B) 15 days have elapsed following the date of the notification.

SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) IN GENERAL- None of the funds appropriated pursuant to the authorization in section 301 for Cooperative Threat Reduction programs, or appropriated for such programs for any prior fiscal year and remaining available for obligation, may be obligated or expended for any of the following purposes:

      (1) Conducting with Russia any peacekeeping exercise or other peacekeeping-related activity.

      (2) Provision of housing.

      (3) Provision of assistance to promote environmental restoration.

      (4) Provision of assistance to promote job retraining.

    (b) LIMITATION WITH RESPECT TO DEFENSE CONVERSION ASSISTANCE- None of the funds appropriated to the Department of Defense for fiscal year 1997 may be obligated or expended for defense conversion.

SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE SUBMITTED.

    None of the funds appropriated pursuant to the authorization in section 301 for Cooperative Threat Reduction programs may be obligated or expended until 15 days after the date which is the latest of the following:

      (1) The date on which the President submits to Congress the determinations required under subsection (c) of section 211 of Public Law 102-228 (22 U.S.C. 2551 note) with respect to any certification transmitted to Congress under subsection (b) of that section before the date of the enactment of this Act.

      (2) The date on which the Secretary of Defense submits to Congress the first report under section 1206(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 471).

      (3) The date on which the Secretary of Defense submits to Congress the report for fiscal year 1996 required under section 1205(c) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2883).

SEC. 1505. AVAILABILITY OF FUNDS.

    Funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs shall be available for obligation for three fiscal years.

TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

Sec. 1601. Modification of requirement for conversion of military positions to civilian positions.

Sec. 1602. Retention of civilian employee positions at military training bases transferred to National Guard.

Sec. 1603. Clarification of applicability of certain management constraints on major range and test facility base structure.

Sec. 1604. Travel expenses and health care for civilian employees of the Department of Defense abroad.

Sec. 1605. Travel, transportation, and relocation allowances for certain former nonappropriated fund employees.

Sec. 1606. Employment and salary practices applicable to Department of Defense overseas teachers.

Sec. 1607. Employment and compensation of civilian faculty members at certain Department of Defense schools.

Sec. 1608. Reimbursement of Department of Defense domestic dependent school board members for certain expenses.

Sec. 1609. Modification of authority for civilian employees of Department of Defense to participate voluntarily in reductions in force.

Sec. 1610. Wage-board compensatory time off.

Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer of employee from installation being closed or realigned.

Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive pay by former Department of Defense employees reemployed by the Government without pay.

Sec. 1613. Simplification of rules relating to the observance of certain holidays.

Sec. 1614. Revision of certain travel management authorities.

Sec. 1615. Failure to comply with veterans’ preference requirements to be treated as a prohibited personnel practice.

Sec. 1616. Pilot programs for defense employees converted to contractor employees due to privatization at closed military installations.

Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.

Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming amendments.

Sec. 1634. Other personnel management authorities.

Sec. 1635. Effective date.

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

SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF MILITARY POSITIONS TO CIVILIAN POSITIONS.

    (a) ELIMINATION OF REQUIREMENT FOR FISCAL YEAR 1997 CONVERSIONS- Paragraph (1) of section 1032(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429; 10 U.S.C. 129a note) is amended--

      (1) by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1996’; and

      (2) by striking out ‘10,000’ and inserting in lieu thereof ‘3,000’.

    (b) CONFORMING AMENDMENTS- Such section is further amended--

      (1) by striking out paragraph (2); and

      (2) by redesignating paragraph (3) as paragraph (2).

    (c) EFFECTIVE DATE- (1) The amendments made by this section shall take effect 30 days after the date on which the Secretary of Defense submits to Congress a certification that at least 3,000 military positions have been converted to civilian positions during fiscal year 1996 as required by section 1032(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429).

    (2) The Secretary shall publish in the Federal Register a notice of the submission of any certification to Congress under paragraph (1), including the date on which the certification was submitted to Congress.

SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY TRAINING BASES TRANSFERRED TO NATIONAL GUARD.

    (a) RETENTION OF EMPLOYEE POSITIONS- In the case of a military training installation described in subsection (b), the Secretary of Defense shall retain civilian employee positions of the Department of Defense at the installation after transfer to the National Guard to facilitate active and reserve component training at the installation. The Secretary shall determine the extent to which positions at the installation are to be retained as positions of the Department of Defense in consultation with the Adjutant General of the National Guard of the State in which the installation is located.

    (b) MILITARY TRAINING INSTALLATIONS AFFECTED- This section applies with respect to each military training installation that--

      (1) was approved for closure in 1995 under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note);

      (2) is scheduled for transfer to National Guard operation and control; and

      (3) will continue to be used, after such transfer, to provide training support to active and reserve components of the Armed Forces.

    (c) MAXIMUM POSITIONS RETAINED- The number of civilian employee positions retained at an installation under this section may not exceed 20 percent of the Federal civilian workforce employed at the installation as of September 8, 1995.

    (d) REMOVAL OF POSITION- The requirement to maintain a civilian employee position at an installation under this section terminates upon the later of the following:

      (1) The date of the departure or retirement from that position by the civilian employee initially employed or retained in the position as a result of this section.

      (2) The date on which the Secretary certifies to Congress that the position is no longer required to ensure that effective support is provided at the installation for active and reserve component training.

SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT CONSTRAINTS ON MAJOR RANGE AND TEST FACILITY BASE STRUCTURE.

    Section 129 of title 10, United States Code, is amended--

      (1) in subsection (c)(1), by inserting ‘, the Major Range and Test Facility Base,’ after ‘industrial-type activities’; and

      (2) by adding at the end the following:

    ‘(e) Subsections (a), (b), and (c) apply to the Major Range and Test Facility Base (MRTFB) at the installation level. With respect to the MRTFB structure, the term ‘funds made available’ includes both direct appropriated funds and funds provided by MRTFB customers.’.

SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE ABROAD.

    (a) IN GENERAL- Chapter 81 of title 10, United States Code, is amended by adding at the end the following new section:

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