< Back to H.R. 3616 (105th Congress, 1997–1998)

Text of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999

This bill was enacted after being signed by the President on October 17, 1998. The text of the bill below is as of Oct 1, 1998 (Passed Congress/Enrolled Bill).

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H.R.3616

One Hundred Fifth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-seventh day of January, one thousand nine hundred and ninety-eight

An Act

To authorize appropriations for fiscal year 1999 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

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

SECTION 1. SHORT TITLE; FINDINGS.

    (a) SHORT TITLE- This Act may be cited as the ‘Strom Thurmond National Defense Authorization Act for Fiscal Year 1999’.

    (b) FINDINGS- Congress makes the following findings:

      (1) Senator Strom Thurmond of South Carolina first became a member of the Committee on Armed Services of the United States Senate on January 19, 1959. Senator Thurmond’s continuous service on that committee covers more than 75 percent of the period of the existence of the committee, which was established immediately after World War II, and more than 20 percent of the period of the existence of military and naval affairs committees of Congress, the original bodies of which were formed in 1816.

      (2) Senator Thurmond came to Congress and the committee as a distinguished veteran of service, including combat service, in the Armed Forces of the United States.

      (3) Senator Thurmond was commissioned as a reserve second lieutenant of infantry in 1924. He served with great distinction with the First Army in the European Theater of Operations during World War II, landing in Normandy in a glider with the 82nd Airborne Division on D-Day. He was transferred to the Pacific Theater of Operations at the end of the war in Europe and was serving in the Philippines when Japan surrendered.

      (4) Having reverted to Reserve status at the end of World War II, Senator Thurmond was promoted to brigadier general in the United States Army Reserve in 1954. He served as President of the Reserve Officers Association beginning that same year and ending in 1955. Senator Thurmond was promoted to major general in the United States Army Reserve in 1959. He transferred to the Retired Reserve on January 1, 1965, after 36 years of commissioned service.

      (5) The distinguished character of Senator Thurmond’s military service has been recognized by awards of numerous decorations that include the Legion of Merit, the Bronze Star medal with ‘V’ device, the Army Commendation Medal, the Belgian Cross of the Order of the Crown, and the French Croix de Guerre.

      (6) Senator Thurmond has served as chairman of the Committee on Armed Services of the United States Senate since 1995 and served as the ranking minority member of the committee from 1993 to 1995. Senator Thurmond concludes his service as chairman at the end of the One Hundred Fifth Congress, but is to continue to serve the committee as a member in successive Congresses.

      (7) This Act is the fortieth annual authorization bill for the Department of Defense for which Senator Thurmond has taken a major responsibility as a member of the Committee on Armed Services of the Senate.

      (8) Senator Thurmond, as an Army officer and a legislator, has made matchless contributions to the national security of the United States that, in duration and in quality, are unique.

      (9) It is altogether fitting and proper that this Act, the last annual authorization Act for the national defense that Senator Thurmond manages in and for the United States Senate as chairman of the Committee on Armed Services, be named in his honor, as provided in subsection (a).

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

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

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

      (2) Division B--Military Construction Authorizations.

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

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

      Sec.1.Short title; findings.

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

      Sec.3.Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

      Sec.101.Army.

      Sec.102.Navy and Marine Corps.

      Sec.103.Air Force.

      Sec.104.Defense-wide activities.

      Sec.105.Reserve components.

      Sec.106.Defense Inspector General.

      Sec.107.Chemical demilitarization program.

      Sec.108.Defense health programs.

      Sec.109.Defense Export Loan Guarantee program.

Subtitle B--Army Programs

      Sec.111.Multiyear procurement authority for Longbow Hellfire Missile program.

      Sec.112.Conditions for award of a second-source procurement contract for the Family of Medium Tactical Vehicles.

      Sec.113.Armored system modernization.

      Sec.114.Reactive armor tiles.

      Sec.115.Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

Subtitle C--Navy Programs

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

      Sec.122.Increase in amount authorized to be excluded from cost limitation for Seawolf submarine program.

      Sec.123.Multiyear procurement authority for the Department of the Navy.

      Sec.124.Annual GAO review of F/A-18E/F aircraft program.

Subtitle D--Air Force Programs

      Sec.131.F-22 aircraft program.

      Sec.132.C-130J aircraft program.

Subtitle E--Other Matters

      Sec.141.Chemical stockpile emergency preparedness program.

      Sec.142.Alternative technologies for destruction of assembled chemical weapons.

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

Subtitle A--Authorization of Appropriations

      Sec.201.Authorization of appropriations.

      Sec.202.Amount for basic and applied research.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec.211.Management responsibility for Navy mine countermeasures programs.

      Sec.212.Future aircraft carrier transition technologies.

      Sec.213.Manufacturing technology program.

      Sec.214.Sense of Congress on the Defense Science and Technology Program.

      Sec.215.Next Generation Internet Program.

      Sec.216.Crusader self-propelled artillery system program.

      Sec.217.Airborne Laser Program.

      Sec.218.Enhanced Global Positioning System program.

Subtitle C--Ballistic Missile Defense

      Sec.231.Sense of Congress on National Missile Defense coverage.

      Sec.232.Limitation on funding for the Medium Extended Air Defense System.

      Sec.233.Limitation on funding for Cooperative Ballistic Missile Defense programs.

      Sec.234.Sense of Congress with respect to Ballistic Missile Defense cooperation with Russia.

      Sec.235.Ballistic Missile Defense program elements.

      Sec.236.Restructuring of acquisition strategy for Theater High-Altitude Area Defense (THAAD) system.

Subtitle D--Other Matters

      Sec.241.Extension of authority to carry out certain prototype projects.

      Sec.242.NATO alliance ground surveillance concept definition.

      Sec.243.NATO common-funded Civil Budget.

      Sec.244.Executive agent for cooperative research program of the Department of Defense and the Department of Veterans Affairs.

      Sec.245.Review of pharmacological interventions for reversing brain injury.

      Sec.246.Pilot program for revitalizing the laboratories and test and evaluation centers of the Department of Defense.

      Sec.247.Chemical warfare defense.

      Sec.248.Landmine alternatives.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

      Sec.301.Operation and maintenance funding.

      Sec.302.Working capital funds.

      Sec.303.Armed Forces Retirement Home.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec.311.Refurbishment of M1-A1 tanks.

      Sec.312.Operation of prepositioned fleet, National Training Center, Fort Irwin, California.

      Sec.313.Berthing space at Norfolk Naval Shipyard, Virginia.

      Sec.314.NATO common-funded military budget.

Subtitle C--Environmental Provisions

      Sec.321.Settlement of claims of foreign governments for environmental cleanup of overseas sites formerly used by the Department of Defense.

      Sec.322.Authority to pay negotiated settlement for environmental cleanup of formerly used defense sites in Canada.

      Sec.323.Removal of underground storage tanks.

      Sec.324.Report regarding polychlorinated biphenyl waste under Department of Defense control overseas.

      Sec.325.Modification of deadline for submittal to Congress of annual reports on environmental activities.

      Sec.326.Submarine solid waste control.

      Sec.327.Arctic Military Environmental Cooperation Program.

      Sec.328.Sense of Congress regarding oil spill prevention training for personnel on board Navy vessels.

Subtitle D--Information Technology Issues

      Sec.331.Additional information technology responsibilities of Chief Information Officers.

      Sec.332.Defense-wide electronic mall system for supply purchases.

      Sec.333.Priority funding to ensure year 2000 compliance of information technology and national security systems.

      Sec.334.Evaluation of year 2000 compliance as part of training exercises programs.

      Sec.335.Continuity of essential operations at risk of failure because of information technology and national security systems that are not year 2000 compliant.

Subtitle E--Defense Infrastructure Support Improvement

      Sec.341.Clarification of definition of depot-level maintenance and repair.

      Sec.342.Reporting and analysis requirements before change of commercial and industrial type functions to private sector performance.

      Sec.343.Notifications of determinations of military items as being commercial items for purposes of the exception to requirements regarding core logistics capabilities.

      Sec.344.Oversight of development and implementation of automated identification technology.

      Sec.345.Contractor-operated civil engineering supply stores program.

      Sec.346.Conditions on expansion of functions performed under prime vendor contracts for depot-level maintenance and repair.

      Sec.347.Best commercial inventory practices for management of secondary supply items.

      Sec.348.Personnel reductions in Army Materiel Command.

      Sec.349.Inventory management of in-transit items.

      Sec.350.Review of Defense Automated Printing Service functions.

      Sec.351.Development of plan for establishment of core logistics capabilities for maintenance and repair of C-17 aircraft.

Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

      Sec.361.Continuation of management and funding of Defense Commissary Agency through the Office of the Secretary of Defense.

      Sec.362.Expansion of current eligibility of Reserves for commissary benefits.

      Sec.363.Costs payable to the Department of Defense and other Federal agencies for services provided to the Defense Commissary Agency.

      Sec.364.Collection of dishonored checks presented at commissary stores.

      Sec.365.Restrictions on patron access to, and purchases in, overseas commissaries and exchange stores.

      Sec.366.Repeal of requirement for Air Force to sell tobacco products to enlisted personnel.

      Sec.367.Prohibition on consolidation or other organizational changes of Department of Defense retail systems.

      Sec.368.Defense Commissary Agency telecommunications.

      Sec.369.Survey of commissary store patrons regarding satisfaction with commissary store merchandise.

Subtitle G--Other Matters

      Sec.371.Eligibility requirements for attendance at Department of Defense domestic dependent elementary and secondary schools.

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

      Sec.373.Department of Defense readiness reporting system.

      Sec.374.Specific emphasis of program to investigate fraud, waste, and abuse within Department of Defense.

      Sec.375.Condition for providing financial assistance for support of additional duties assigned to the Army National Guard.

      Sec.376.Demonstration program to improve quality of personal property shipments of members.

      Sec.377.Pilot program for acceptance and use of landing fees charged for use of domestic military airfields by civil aircraft.

      Sec.378.Strategic plan for expansion of distance learning initiatives.

      Sec.379.Public availability of operating agreements between military installations and financial institutions.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

      Sec.401.End strengths for active forces.

      Sec.402.Revision in permanent end strength levels.

      Sec.403.Date for submission of annual manpower requirements report.

      Sec.404.Additional exemption from percentage limitation on number of lieutenant generals and vice admirals.

      Sec.405.Extension of authority for Chairman of the Joint Chiefs of Staff to designate up to 12 general and flag officer positions to be excluded from general and flag officer grade limitations.

      Sec.406.Exception for Chief, National Guard Bureau, from limitation on number of officers above major general.

      Sec.407.Limitation on daily average of personnel on active duty in grades E-8 and E-9.

Subtitle B--Reserve Forces

      Sec.411.End strengths for Selected Reserve.

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

      Sec.413.End strengths for military technicians (dual status).

      Sec.414.Increase in number of members in certain grades authorized to serve on active duty in support of the reserves.

      Sec.415.Consolidation of strength authorizations for active status Naval Reserve flag officers of the Navy Medical Department Staff Corps.

Subtitle C--Authorization of Appropriations

      Sec.421.Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

      Sec.501.Codification of eligibility of retired officers and former officers for consideration by special selection boards.

      Sec.502.Involuntary separation pay denied for officer discharged for failure of selection for promotion requested by the officer.

      Sec.503.Streamlined selective retention process for regular officers.

      Sec.504.Permanent applicability of limitations on years of active naval service of Navy limited duty officers in grades of commander and captain.

      Sec.505.Tenure of Chief of the Air Force Nurse Corps.

      Sec.506. Grade of Air Force Assistant Surgeon General for Dental Services.

      Sec.507.Review regarding allocation of Naval Reserve Officers’ Training Corps scholarships among participating colleges and universities.

Subtitle B--Reserve Component Matters

      Sec.511.Use of Reserves for emergencies involving weapons of mass destruction.

      Sec.512.Service required for retirement of National Guard officer in higher grade.

      Sec.513.Reduced time-in-grade requirement for reserve general and flag officers involuntarily transferred from active status.

      Sec.514.Active status service requirement for promotion consideration for Army and Air Force reserve component brigadier generals.

      Sec.515.Composition of selective early retirement boards for rear admirals of the Naval Reserve and major generals of the Marine Corps Reserve.

      Sec.516.Authority for temporary waiver for certain Army Reserve officers of baccalaureate degree requirement for promotion of reserve officers.

      Sec.517. Furnishing of burial flags for deceased members and former members of the Selected Reserve.

Subtitle C--Military Education and Training

      Sec.521.Separate housing for male and female recruits during recruit basic training.

      Sec.522.After-hours privacy for recruits during basic training.

      Sec.523.Sense of the House of Representatives relating to small unit assignments by gender during recruit basic training.

      Sec.524.Extension of reporting dates for Commission on Military Training and Gender-Related Issues.

      Sec.525.Improved oversight of innovative readiness training.

Subtitle D--Decorations, Awards, and Commendations

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

      Sec.532.Waiver of time limitations for award of certain decorations to certain persons.

      Sec.533.Commendation and commemoration of the Navy and Marine Corps personnel who served in the United States Navy Asiatic Fleet from 1910-1942.

      Sec.534.Appreciation for service during World War I and World War II by members of the Navy assigned on board merchant ships as the Naval Armed Guard Service.

      Sec.535.Sense of Congress regarding the heroism, sacrifice, and service of the military forces of South Vietnam, other nations, and indigenous groups in connection with the United States Armed Forces during the Vietnam conflict.

      Sec.536.Sense of Congress regarding the heroism, sacrifice, and service of former South Vietnamese commandos in connection with United States Armed Forces during the Vietnam conflict.

      Sec.537.Prohibition on members of Armed Forces entering correctional facilities to present decorations to persons who have committed serious violent felonies.

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

      Sec.541.Personnel freeze.

      Sec.542.Professional staff.

      Sec.543.Ex parte communications.

      Sec.544.Timeliness standards.

      Sec.545.Scope of correction of military records.

Subtitle F--Reports

      Sec.551.Report on personnel retention.

      Sec.552.Report on process for selection of members for service on courts-martial.

      Sec.553.Report on prisoners transferred from United States Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal Bureau of Prisons.

      Sec.554. Review and report regarding the distribution of National Guard full-time support among the States.

Subtitle G--Other Matters

      Sec.561.Two-year extension of certain force drawdown transition authorities relating to personnel management and benefits.

      Sec.562.Leave without pay for suspended academy cadets and midshipmen.

      Sec.563.Continued eligibility under Voluntary Separation Incentive program for members who involuntarily lose membership in a reserve component.

      Sec.564.Reinstatement of definition of financial institution in authorities for reimbursement of defense personnel for Government errors in direct deposit of pay.

      Sec.565.Increase in maximum amount for College Fund program.

      Sec.566.Central Identification Laboratory, Hawaii.

      Sec.567.Military funeral honors for veterans.

      Sec.568.Status in the Naval Reserve of cadets at the Merchant Marine Academy.

      Sec.569.Repeal of restriction on civilian employment of enlisted members.

      Sec.570.Transitional compensation for abused dependent children not residing with the spouse or former spouse of a member convicted of dependent abuse.

      Sec.571.Pilot program for treating GED and home school diploma recipients as high school graduates for determinations of eligibility for enlistment in the Armed Forces.

      Sec.572.Sense of Congress concerning New Parent Support Program and military families.

      Sec.573.Advancement of Benjamin O. Davis, Junior, to grade of general on the retired list of the Air Force.

      Sec.574.Sense of the House of Representatives concerning adherence by civilians in military chain of command to the standard of exemplary conduct required of commanding officers and others in authority in the Armed Forces.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

      Sec.601.Increase in basic pay for fiscal year 1999.

      Sec.602.Rate of pay for cadets and midshipmen at the service academies.

      Sec.603.Basic allowance for housing outside the United States.

      Sec.604.Basic allowance for subsistence for reserves.

Subtitle B--Bonuses and Special and Incentive Pays

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

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

      Sec.613.Three-month extension of authorities relating to payment of other bonuses and special pays.

      Sec.614.Increased hazardous duty pay for aerial flight crewmembers in certain pay grades.

      Sec.615.Aviation career incentive pay and aviation officer retention bonus.

      Sec.616.Diving duty special pay for divers having diving duty as a nonprimary duty.

      Sec.617.Hardship duty pay.

      Sec.618.Selective reenlistment bonus eligibility for Reserve members performing active Guard and Reserve duty.

      Sec.619.Repeal of 10 percent limitation on certain selective reenlistment bonuses.

      Sec.620.Increase in maximum amount authorized for Army enlistment bonus.

      Sec.621.Equitable treatment of Reserves eligible for special pay for duty subject to hostile fire or imminent danger.

      Sec.622.Retention incentives initiative for critically short military occupational specialties.

Subtitle C--Travel and Transportation Allowances

      Sec.631.Payments for movements of household goods arranged by members.

      Sec.632.Exception to maximum weight allowance for baggage and household effects.

      Sec.633.Travel and transportation allowances for travel performed by members in connection with rest and recuperative leave from overseas stations.

      Sec.634.Storage of baggage of certain dependents.

      Sec.635.Commercial travel of Reserves at Federal supply schedule rates for attendance at inactive-duty training assemblies.

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

      Sec.641.Paid-up coverage under Survivor Benefit Plan.

      Sec.642.Survivor Benefit Plan open enrollment period.

      Sec.643.Effective date of court-required former spouse Survivor Benefit Plan coverage effectuated through elections and deemed elections.

      Sec.644.Presentation of United States flag to members of the Armed Forces upon retirement.

      Sec.645.Recovery, care, and disposition of remains of medically retired member who dies during hospitalization that begins while on active duty.

      Sec.646.Revision to computation of retired pay for certain members.

      Sec.647.Elimination of backlog of unpaid retired pay.

Subtitle E--Other Matters

      Sec.651.Definition of possessions of the United States for pay and allowances purposes.

      Sec.652.Accounting of advance payments.

      Sec.653.Reimbursement of rental vehicle costs when motor vehicle transported at Government expense is late.

      Sec.654.Education loan repayment program for health professions officers serving in Selected Reserve.

      Sec.655.Federal employees’ compensation coverage for students participating in certain officer candidate programs.

      Sec.656.Relationship of enlistment bonuses to eligibility to receive Army college fund supplement under Montgomery GI Bill Educational Assistance Program.

      Sec.657.Authority to provide financial assistance for education of certain defense dependents overseas.

      Sec.658.Clarifications concerning payments to certain persons captured or interned by North Vietnam.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

      Sec.701.Dependents’ dental program.

      Sec.702.Expansion of dependent eligibility under retiree dental program.

      Sec.703.Plan for redesign of military pharmacy system.

      Sec.704.Transitional authority to provide continued health care coverage for certain persons unaware of loss of CHAMPUS eligibility.

Subtitle B--TRICARE Program

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

      Sec.712.TRICARE prime automatic enrollments and retiree payment options.

      Sec.713.System for tracking data and measuring performance in meeting TRICARE access standards.

      Sec.714.Establishment of appeals process for claimcheck denials.

      Sec.715.Reviews relating to accessibility of health care under TRICARE.

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

      Sec.721.Demonstration project to include certain covered beneficiaries within Federal Employees Health Benefits Program.

      Sec.722.TRICARE as Supplement to Medicare demonstration.

      Sec.723.Implementation of redesign of pharmacy system.

      Sec.724.Comprehensive evaluation of implementation of demonstration projects and TRICARE pharmacy redesign.

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

      Sec.731.Process for waiving informed consent requirement for administration of certain drugs to members of Armed Forces for purposes of a particular military operation.

      Sec.732.Health benefits for abused dependents of members of the Armed Forces.

      Sec.733.Provision of health care at military entrance processing stations and elsewhere outside medical treatment facilities.

      Sec.734.Professional qualifications of physicians providing military health care.

Subtitle E--Other Matters

      Sec.741.Enhanced Department of Defense Organ and Tissue Donor program.

      Sec.742.Authorization to establish a Level 1 Trauma Training Center.

      Sec.743.Authority to establish center for study of post-deployment health concerns of members of the Armed Forces.

      Sec.744.Report on implementation of enrollment-based capitation for funding for military medical treatment facilities.

      Sec.745.Joint Department of Defense and Department of Veterans Affairs reports relating to interdepartmental cooperation in the delivery of medical care.

      Sec.746.Report on research and surveillance activities regarding Lyme disease and other tick-borne diseases.

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

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

      Sec.801.Limitation on use of price preference upon achievement of contract goal for small and disadvantaged businesses.

      Sec.802.Distribution of assistance under the Procurement Technical Assistance Cooperative Agreement Program.

      Sec.803.Defense commercial pricing management improvement.

      Sec.804.Modification of senior executives covered by limitation on allowability of compensation for certain contractor personnel.

      Sec.805.Separate determinations of exceptional waivers of truth in negotiation requirements for prime contracts and subcontracts.

      Sec.806.Procurement of conventional ammunition.

      Sec.807.Para-aramid fibers and yarns.

      Sec.808.Clarification of responsibility for submission of information on prices previously charged for property or services offered.

      Sec.809.Amendments and study relating to procurement from firms in industrial base for production of small arms.

Subtitle B--Other Matters

      Sec.811.Eligibility of involuntarily downgraded employee for membership in an acquisition corps.

      Sec.812.Time for submission of annual report relating to Buy American Act.

      Sec.813.Procurement of travel services for official and unofficial travel under one contract.

      Sec.814.Department of Defense purchases through other agencies.

      Sec.815.Supervision of defense acquisition university structure by Under Secretary of Defense for Acquisition and Technology.

      Sec.816.Pilot programs for testing program manager performance of product support oversight responsibilities for life cycle of acquisition programs.

      Sec.817.Scope of protection of certain information from disclosure.

      Sec.818.Plan for rapid transition from completion of small business innovation research into defense acquisition programs.

      Sec.819.Five-year authority for Secretary of the Navy to exchange certain items.

      Sec.820.Permanent authority for use of major range and test facility installations by commercial entities.

      Sec.821.Inventory exchange authorized for certain fuel delivery contract.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Officers and Organization

      Sec.901.Reduction in number of Assistant Secretary of Defense positions.

      Sec.902.Repeal of statutory requirement for position of Assistant Secretary of Defense for Command, Control, Communications, and Intelligence.

      Sec.903.Independent task force on transformation and Department of Defense organization.

      Sec.904.Authority to expand the National Defense University.

      Sec.905.Center for Hemispheric Defense Studies.

      Sec.906.Restructuring of administration of Fisher Houses.

      Sec.907.Management reform for research, development, test, and evaluation activities.

Subtitle B--Department of Defense Financial Management

      Sec.911.Improved accounting for defense contract services.

      Sec.912.Report on Department of Defense financial management improvement plan.

      Sec.913.Study of feasibility of performance of Department of Defense finance and accounting functions by private sector sources or other Federal sources.

      Sec.914.Limitation on reorganization and consolidation of operating locations of the Defense Finance and Accounting Service.

      Sec.915.Annual report on resources allocated to support and mission activities.

Subtitle C--Joint Warfighting Experimentation

      Sec.921.Findings concerning joint warfighting experimentation.

      Sec.922.Sense of Congress concerning joint warfighting experimentation.

      Sec.923.Reports on joint warfighting experimentation.

Subtitle D--Other Matters

      Sec.931.Further reductions in defense acquisition and support workforce.

      Sec.932.Limitation on operation and support funds for the Office of the Secretary of Defense.

      Sec.933.Clarification and simplification of responsibilities of Inspectors General regarding whistleblower protections.

      Sec.934.Repeal of requirement relating to assignment of tactical airlift mission to reserve components.

      Sec.935.Consultation with Marine Corps on major decisions directly concerning Marine Corps aviation.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

      Sec.1001.Transfer authority.

      Sec.1002.Incorporation of classified annex.

      Sec.1003.Authorization of prior emergency supplemental appropriations for fiscal year 1998.

      Sec.1004.Authorization of appropriations for Bosnia peacekeeping operations for fiscal year 1999.

      Sec.1005.Partnership for Peace Information Management System.

      Sec.1006.United States contribution to NATO common-funded budgets in fiscal year 1999.

      Sec.1007.Liquidity of working-capital funds.

      Sec.1008.Termination of authority to manage working-capital funds and certain activities through the Defense Business Operations Fund.

      Sec.1009.Clarification of authority to retain recovered costs of disposals in working-capital funds.

      Sec.1010.Crediting of amounts recovered from third parties for loss or damage to personal property shipped or stored at Government expense.

Subtitle B--Naval Vessels and Shipyards

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

      Sec.1012.Transfer of U.S.S. NEW JERSEY.

      Sec.1013.Homeporting of the U.S.S. IOWA in San Francisco, California.

      Sec.1014.Sense of Congress concerning the naming of an LPD-17 vessel.

      Sec.1015.Reports on naval surface fire-support capabilities.

      Sec.1016.Long-term charter of three vessels in support of submarine rescue, escort, and towing.

      Sec.1017.Transfer of obsolete Army tugboat.

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

      Sec.1021.Department of Defense support to other agencies for counter-drug activities.

      Sec.1022.Department of Defense support of National Guard drug interdiction and counter-drug activities.

      Sec.1023.Department of Defense counter-drug activities in transit zone.

Subtitle D--Miscellaneous Report Requirements and Repeals

      Sec.1031.Repeal of unnecessary and obsolete reporting provisions.

      Sec.1032.Report regarding use of tagging system to identify hydrocarbon fuels used by Department of Defense.

Subtitle E--Armed Forces Retirement Home

      Sec.1041.Appointment of Director and Deputy Director of the Naval Home.

      Sec.1042.Revision of inspection requirements relating to Armed Forces Retirement Home.

      Sec.1043.Clarification of land conveyance authority, Armed Forces Retirement Home.

Subtitle F--Matters Relating to Defense Property

      Sec.1051.Plan for improved demilitarization of excess and surplus defense property.

      Sec.1052.Transfer of F-4 Phantom II aircraft to foundation.

Subtitle G--Other Department of Defense Matters

      Sec.1061.Pilot program on alternative notice of receipt of legal process for garnishment of Federal pay for child support and alimony.

      Sec.1062.Training of special operations forces with friendly foreign forces.

      Sec.1063.Research grants competitively awarded to service academies.

      Sec.1064.Department of Defense use of frequency spectrum.

      Sec.1065.Department of Defense aviation accident investigations.

      Sec.1066.Investigation of actions relating to 174th Fighter Wing of New York Air National Guard.

      Sec.1067.Program to commemorate 50th anniversary of the Korean War.

      Sec.1068.Designation of America’s National Maritime Museum.

      Sec.1069.Technical and clerical amendments.

Subtitle H--Other Matters

      Sec.1071.Act constituting Presidential approval of vessel war risk insurance requested by the Secretary of Defense.

      Sec.1072.Extension and reauthorization of Defense Production Act of 1950.

      Sec.1073.Requirement that burial flags furnished by the Secretary of Veterans Affairs be wholly produced in the United States.

      Sec.1074.Sense of Congress concerning tax treatment of principal residence of members of Armed Forces while away from home on active duty.

      Sec.1075.Clarification of State authority to tax compensation paid to certain employees.

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

      Sec.1101.Defense Advanced Research Projects Agency experimental personnel management program for technical personnel.

      Sec.1102.Maximum pay rate comparability for faculty members of the United States Air Force Institute of Technology.

      Sec.1103.Authority for release to Coast Guard of drug test results of civil service mariners of the Military Sealift Command.

      Sec.1104.Limitations on back pay awards.

      Sec.1105.Restoration of annual leave accumulated by civilian employees at installations in the Republic of Panama to be closed pursuant to the Panama Canal Treaty of 1977.

      Sec.1106.Repeal of program providing preference for employment of military spouses in military child care facilities.

      Sec.1107.Observance of certain holidays at duty posts outside the United States.

      Sec.1108.Continuation of random drug testing program for certain Department of Defense employees.

      Sec.1109.Department of Defense employee voluntary early retirement authority.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

      Sec.1201.Findings.

      Sec.1202.Sense of Congress.

      Sec.1203.Presidential reports.

      Sec.1204.Secretary of Defense reports on operations in Bosnia and Herzegovina.

      Sec.1205.Definitions.

Subtitle B--Matters Relating to Contingency Operations

      Sec.1211.Report on involvement of Armed Forces in contingency and ongoing operations.

      Sec.1212.Submission of report on objectives of a contingency operation with requests for funding for the operation.

Subtitle C--Matters Relating to NATO and Europe

      Sec.1221.Limitation on United States share of costs of NATO expansion.

      Sec.1222.Report on military capabilities of an expanded NATO alliance.

      Sec.1223.Reports on the development of the European security and defense identity.

Subtitle D--Other Matters

      Sec.1231.Limitation on assignment of United States forces for certain United Nations purposes.

      Sec.1232.Prohibition on restriction of Armed Forces under Kyoto Protocol to the United Nations Framework Convention on Climate Change.

      Sec.1233.Defense burdensharing.

      Sec.1234.Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to foreign countries.

      Sec.1235.Transfers of naval vessels to certain foreign countries.

      Sec.1236.Repeal of landmine moratorium.

      Sec.1237.Application of authorities under the International Emergency Economic Powers Act to Communist Chinese military companies.

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

      Sec.1301.Specification of Cooperative Threat Reduction Programs and funds.

      Sec.1302.Funding allocations.

      Sec.1303.Prohibition on use of funds for specified purposes.

      Sec.1304.Limitation on use of funds for chemical weapons destruction activities in Russia.

      Sec.1305.Limitation on use of funds for biological weapons proliferation prevention activities in Russia.

      Sec.1306.Cooperative counter proliferation program.

      Sec.1307.Requirement to submit summary of amounts requested by project category.

      Sec.1308.Report on biological weapons programs in Russia.

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

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

      Sec.1401.Short title.

      Sec.1402.Domestic preparedness for response to threats of terrorist use of weapons of mass destruction.

      Sec.1403.Report on domestic emergency preparedness.

      Sec.1404.Threat and risk assessments.

      Sec.1405.Advisory panel to assess domestic response capabilities for terrorism involving weapons of mass destruction.

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

Subtitle A--Arms Control Matters

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

      Sec.1502.Transmission of executive branch reports providing Congress with classified summaries of arms control developments.

      Sec.1503.Report on adequacy of emergency communications capabilities between United States and Russia.

      Sec.1504.Russian nonstrategic nuclear weapons.

Subtitle B--Satellite Export Controls

      Sec.1511.Sense of Congress.

      Sec.1512.Certification of exports of missile equipment or technology to China.

      Sec.1513.Satellite controls under the United States Munitions List.

      Sec.1514.National security controls on satellite export licensing.

      Sec.1515.Report on export of satellites for launch by People’s Republic of China.

      Sec.1516.Related items defined.

Subtitle C--Other Export Control Matters

      Sec.1521.Authority for export control activities of the Department of Defense.

      Sec.1522.Release of export information by Department of Commerce to other agencies for purpose of national security assessment.

      Sec.1523.Nuclear export reporting requirement.

      Sec.1524.Execution of objection authority within the Department of Defense.

Subtitle D--Counterproliferation Matters

      Sec.1531.One-year extension of counterproliferation authorities for support of United Nations Special Commission on Iraq.

      Sec.1532.Sense of Congress on nuclear tests in South Asia.

      Sec.1533.Report on requirements for response to increased missile threat in Asia-Pacific region.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

      Sec.2001.Short title.

TITLE XXI--ARMY

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

      Sec.2102.Family housing.

      Sec.2103.Improvements to military family housing units.

      Sec.2104.Authorization of appropriations, Army.

      Sec.2105.Modification of authority to carry out fiscal year 1998 projects.

TITLE XXII--NAVY

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

      Sec.2202.Family housing.

      Sec.2203.Improvements to military family housing units.

      Sec.2204.Authorization of appropriations, Navy.

      Sec.2205.Authorization to accept road construction project, Marine Corps Base, Camp Lejeune, North Carolina.

TITLE XXIII--AIR FORCE

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

      Sec.2302.Family housing.

      Sec.2303.Improvements to military family housing units.

      Sec.2304.Authorization of appropriations, Air Force.

TITLE XXIV--DEFENSE AGENCIES

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

      Sec.2402.Improvements to military family housing units.

      Sec.2403.Energy conservation projects.

      Sec.2404.Authorization of appropriations, Defense Agencies.

      Sec.2405.Repeal of fiscal year 1997 authorization of appropriations for certain military housing improvement program.

      Sec.2406.Modification of authority to carry out certain fiscal year 1995 projects.

      Sec.2407.Modification of authority to carry out fiscal year 1990 project.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

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

      Sec.2502.Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

      Sec.2602.Modification of authority to carry out fiscal year 1998 project.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

      Sec.2702.Extension of authorizations of certain fiscal year 1996 projects.

      Sec.2703.Extension of authorization of fiscal year 1995 project.

      Sec.2704.Effective date.

TITLE XXVIII--GENERAL PROVISIONS

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

      Sec.2801.Architectural and engineering services and construction design.

      Sec.2802.Expansion of Army overseas family housing lease authority.

      Sec.2803.Definition of ancillary supporting facilities under alternative authority for acquisition and improvement of military housing.

      Sec.2804.Purchase of build-to-lease family housing at Eielson Air Force Base, Alaska.

      Sec.2805.Report relating to improvement of housing for unaccompanied members.

Subtitle B--Real Property and Facilities Administration

      Sec.2811.Exceptions to real property transaction reporting requirements for war and certain emergency and other operations.

      Sec.2812.Restoration of Department of Defense lands used by another Federal agency.

      Sec.2813.Outdoor recreation development on military installations for disabled veterans, military dependents with disabilities, and other persons with disabilities.

      Sec.2814.Report on leasing and other alternative uses of nonexcess military property.

      Sec.2815.Report on implementation of utility system conveyance authority.

Subtitle C--Defense Base Closure and Realignment

      Sec.2821.Applicability of property disposal laws to leases at installations to be closed or realigned under base closure laws.

      Sec.2822.Elimination of waiver authority regarding prohibition against certain conveyances of property at Naval Station, Long Beach, California.

      Sec.2823.Payment of stipulated penalties assessed under CERCLA in connection with McClellan Air Force Base, California.

Subtitle D--Land Conveyances

Part I--Army Conveyances

      Sec.2831.Modification of land conveyance, Army Reserve Center, Youngstown, Ohio.

      Sec.2832.Release of interests in real property, former Kennebec Arsenal, Augusta, Maine.

      Sec.2833.Release, waiver, or conveyance of interests in real property, former Redstone Army Arsenal property, Alabama.

      Sec.2834.Conveyance of utility systems, Lone Star Army Ammunition Plant, Texas.

      Sec.2835.Conveyance of water rights and related interests, Rocky Mountain Arsenal, Colorado, for purposes of acquisition of perpetual contracts for water.

      Sec.2836.Land conveyance, Army Reserve Center, Massena, New York.

      Sec.2837.Land conveyance, Army Reserve Center, Ogdensburg, New York.

      Sec.2838.Land conveyance, Army Reserve Center, Jamestown, Ohio.

      Sec.2839.Land conveyance, Army Reserve Center, Peoria, Illinois.

      Sec.2840.Land conveyance, Army Reserve Center, Bridgton, Maine.

      Sec.2841.Land conveyance, Fort Sheridan, Illinois.

      Sec.2842.Land conveyance, Skaneateles, New York.

      Sec.2843.Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana.

      Sec.2844.Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, Tennessee.

      Sec.2845.Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

Part II--Navy Conveyances

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

      Sec.2852.Land exchange, Naval Reserve Readiness Center, Portland, Maine.

      Sec.2853.Land conveyance, Naval and Marine Corps Reserve facility, Youngstown, Ohio.

      Sec.2854.Land conveyance, Naval Air Reserve Center, Minneapolis, Minnesota.

Part III--Air Force Conveyances

      Sec.2861.Modification of land conveyance, Eglin Air Force Base, Florida.

      Sec.2862.Modification of land conveyance, Finley Air Force Station, North Dakota.

      Sec.2863.Land conveyance, Lake Charles Air Force Station, Louisiana.

      Sec.2864.Land conveyance, Air Force Housing Facility, La Junta, Colorado.

Subtitle E--Other Matters

      Sec.2871.Modification of authority relating to Department of Defense Laboratory Revitalization Demonstration Program.

      Sec.2872.Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood, Texas, with civil aviation.

      Sec.2873.Modification of demonstration project for purchase of fire, security, police, public works, and utility services from local government agencies.

      Sec.2874.Designation of building containing Navy and Marine Corps Reserve Center, Augusta, Georgia.

TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

      Sec.2901.Short title.

      Sec.2902.Withdrawal and reservation.

      Sec.2903.Map and legal description.

      Sec.2904.Agency agreement.

      Sec.2905.Right-of-way grants.

      Sec.2906.Indian sacred sites.

      Sec.2907.Actions concerning ranching operations in withdrawn area.

      Sec.2908.Management of withdrawn and reserved lands.

      Sec.2909.Integrated natural resource management plan.

      Sec.2910.Memorandum of understanding.

      Sec.2911.Maintenance of roads.

      Sec.2912.Management of withdrawn and acquired mineral resources.

      Sec.2913.Hunting, fishing, and trapping.

      Sec.2914.Water rights.

      Sec.2915.Duration of withdrawal.

      Sec.2916.Environmental remediation of relinquished withdrawn lands or upon termination of withdrawal.

      Sec.2917.Delegation of authority.

      Sec.2918.Hold harmless.

      Sec.2919.Authorization of appropriations.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

      Sec.3101.Weapons activities.

      Sec.3102.Defense environmental restoration and waste management.

      Sec.3103.Other defense activities.

      Sec.3104.Defense nuclear waste disposal.

      Sec.3105.Defense environmental management privatization.

Subtitle B--Recurring General Provisions

      Sec.3121.Reprogramming.

      Sec.3122.Limits on general plant projects.

      Sec.3123.Limits on construction projects.

      Sec.3124.Fund transfer authority.

      Sec.3125.Authority for conceptual and construction design.

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

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

      Sec.3128.Availability of funds.

      Sec.3129.Transfers of defense environmental management funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

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

      Sec.3132.Support of ballistic missile defense activities of the Department of Defense.

      Sec.3133.Nonproliferation activities.

      Sec.3134.Licensing of certain mixed oxide fuel fabrication and irradiation facilities.

      Sec.3135.Continuation of processing, treatment, and disposition of legacy nuclear materials.

      Sec.3136.Authority for Department of Energy federally funded research and development centers to participate in merit-based technology research and development programs.

      Sec.3137.Activities of Department of Energy facilities.

      Sec.3138.Hanford overhead and service center costs.

      Sec.3139.Hanford waste tank cleanup program reforms.

      Sec.3140.Hanford Health Information Network.

      Sec.3141.Hazardous materials management and emergency response training program.

      Sec.3142.Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico.

      Sec.3143.Relocation of National Atomic Museum, Albuquerque, New Mexico.

      Sec.3144.Tritium production.

Subtitle D--Other Matters

      Sec.3151.Study and plan relating to worker and community transition assistance.

      Sec.3152.Extension of authority for appointment of certain scientific, engineering, and technical personnel.

      Sec.3153.Requirement for plan to modify employment system used by Department of Energy in defense environmental management programs.

      Sec.3154.Department of Energy nuclear materials couriers.

      Sec.3155.Increase in maximum rate of pay for scientific, engineering, and technical personnel responsible for safety at defense nuclear facilities.

      Sec.3156.Extension of authority of Department of Energy to pay voluntary separation incentive payments.

      Sec.3157.Repeal of fiscal year 1998 statement of policy on stockpile stewardship program.

      Sec.3158.Report on stockpile stewardship criteria.

      Sec.3159.Panel to assess the reliability, safety, and security of the United States nuclear stockpile.

      Sec.3160.International cooperative information exchange.

      Sec.3161.Protection against inadvertent release of restricted data and formerly restricted data.

      Sec.3162.Sense of Congress regarding treatment of Formerly Utilized Sites Remedial Action Program under a nondefense discretionary budget function.

      Sec.3163.Reports relating to tritium production.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

      Sec.3201.Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

      Sec.3301.Definitions.

      Sec.3302.Authorized uses of stockpile funds.

      Sec.3303.Authority to dispose of certain materials in National Defense Stockpile.

      Sec.3304.Use of stockpile funds for certain environmental remediation, restoration, waste management, and compliance activities.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

      Sec.3401.Definitions.

      Sec.3402.Authorization of appropriations.

      Sec.3403.Disposal of Naval Petroleum Reserve Numbered 2.

      Sec.3404.Disposal of Naval Petroleum Reserve Numbered 3.

      Sec.3405.Disposal of Oil Shale Reserve Numbered 2.

      Sec.3406.Administration.

TITLE XXXV--PANAMA CANAL COMMISSION

      Sec.3501.Short title; references to Panama Canal Act of 1979.

      Sec.3502.Authorization of expenditures.

      Sec.3503.Purchase of vehicles.

      Sec.3504.Expenditures only in accordance with treaties.

      Sec.3505.Donations to the Commission.

      Sec.3506.Agreements for United States to provide post-transfer administrative services for certain employee benefits.

      Sec.3507.Sunset of United States overseas benefits just before transfer.

      Sec.3508.Central examining office.

      Sec.3509.Liability for vessel accidents.

      Sec.3510.Panama Canal Board of Contract Appeals.

      Sec.3511.Restatement of requirement that Secretary of Defense designee on Panama Canal Commission supervisory board be a current officer of the Department of Defense.

      Sec.3512.Technical amendments.

TITLE XXXVI--MARITIME ADMINISTRATION

      Sec.3601.Authorization of appropriations for fiscal year 1999.

      Sec.3602.Authority to convey National Defense Reserve Fleet vessel.

      Sec.3603.Authority to convey certain National Defense Reserve Fleet vessels.

      Sec.3604.Clearinghouse for maritime information.

      Sec.3605.Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

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

      Sec.3701.Authorization for additional customs personnel to monitor the importation of products made with forced labor.

      Sec.3702.Reporting requirement on forced labor products destined for the United States market.

      Sec.3703.Renegotiating memoranda of understanding on forced labor.

TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

      Sec.3801.Short title.

      Sec.3802.Definitions.

      Sec.3803.Re-establishment of initiative on automotive parts sales to Japan.

      Sec.3804.Establishment of Special Advisory Committee on automotive parts sales in Japanese and other Asian markets.

      Sec.3805.Expiration date.

TITLE XXXIX--RADIO FREE ASIA

      Sec.3901.Short title.

      Sec.3902.Authorization of appropriations for increased funding for Radio Free Asia and Voice of America broadcasting to China.

      Sec.3903.Reporting requirement.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

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

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

      Sec.101.Army.

      Sec.102.Navy and Marine Corps.

      Sec.103.Air Force.

      Sec.104.Defense-wide activities.

      Sec.105.Reserve components.

      Sec.106.Defense Inspector General.

      Sec.107.Chemical demilitarization program.

      Sec.108.Defense health programs.

      Sec.109.Defense Export Loan Guarantee program.

Subtitle B--Army Programs

      Sec.111.Multiyear procurement authority for Longbow Hellfire Missile program.

      Sec.112.Conditions for award of a second-source procurement contract for the Family of Medium Tactical Vehicles.

      Sec.113.Armored system modernization.

      Sec.114.Reactive armor tiles.

      Sec.115.Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

Subtitle C--Navy Programs

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

      Sec.122.Increase in amount authorized to be excluded from cost limitation for Seawolf submarine program.

      Sec.123.Multiyear procurement authority for the Department of the Navy.

      Sec.124.Annual GAO review of F/A-18E/F aircraft program.

Subtitle D--Air Force Programs

      Sec.131.F-22 aircraft program.

      Sec.132.C-130J aircraft program.

Subtitle E--Other Matters

      Sec.141.Chemical stockpile emergency preparedness program.

      Sec.142.Alternative technologies for destruction of assembled chemical weapons.

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Army as follows:

      (1) For aircraft, $1,396,047,000.

      (2) For missiles, $1,228,229,000.

      (3) For weapons and tracked combat vehicles, $1,507,551,000.

      (4) For ammunition, $1,016,255,000.

      (5) For other procurement, $3,344,932,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) NAVY- Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Navy as follows:

      (1) For aircraft, $7,642,200,000.

      (2) For weapons, including missiles and torpedoes, $1,223,903,000.

      (3) For shipbuilding and conversion, $6,033,480,000.

      (4) For other procurement, $4,042,975,000.

    (b) MARINE CORPS- Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Marine Corps in the amount of $881,896,000.

    (c) NAVY AND MARINE CORPS AMMUNITION- Funds are hereby authorized to be appropriated for procurement of ammunition for the Navy and the Marine Corps in the amount of $463,339,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Air Force as follows:

      (1) For aircraft, $8,350,617,000.

      (2) For missiles, $2,210,640,000.

      (3) For ammunition, $383,161,000.

      (4) For other procurement, $6,950,372,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement of aircraft, vehicles, communications equipment, and other equipment for the reserve components of the Armed Forces as follows:

      (1) For the Army National Guard, $10,000,000.

      (2) For the Air National Guard, $10,000,000.

      (3) For the Army Reserve, $10,000,000.

      (4) For the Naval Reserve, $10,000,000.

      (5) For the Air Force Reserve, $10,000,000.

      (6) For the Marine Corps Reserve, $10,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1999 the amount of $803,000,000 for--

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

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

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

Subtitle B--Army Programs

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

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

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

    The Secretary of the Army may award a second-source procurement contract for the production of the Family of Medium Tactical Vehicles only after the Secretary certifies in writing to the congressional defense committees--

      (1) that the total quantity of vehicles within the Family of Medium Tactical Vehicles program that the Secretary will require to be delivered (under all contracts) in any 12-month period will be sufficient to enable the prime contractor to maintain a minimum economic production level;

      (2) that the total cost to the Army of the procurements under the prime and second-source contracts over the period of those contracts will be the same as or lower than the amount that would be the total cost of the procurements if only one such contract were awarded; and

      (3) that the vehicles to be produced under those contracts will be produced with common components that will be interchangeable among similarly configured models.

SEC. 113. ARMORED SYSTEM MODERNIZATION.

    (a) FUNDING- Of the funds appropriated pursuant to the authorization of appropriations in section 101(3) for M1 Abrams Tank Modifications--

      (1) $14,300,000 shall be obligated for procurements associated with the M1A1D Applique Integration Program, of which no more than $11,400,000 may be obligated before the end of the 30-day period beginning on the date on which the Secretary of the Army submits the report required under subsection (b); and

      (2) $6,000,000 shall be obligated to develop a M1A2 risk reduction program.

    (b) REPORT- (1) Not later than January 31, 1999, the Secretary of the Army shall submit to the congressional defense committees a report on Army armored system modernization programs. The report shall include--

      (A) an assessment of the current acquisition and fielding strategy of the Army for the M1 Abrams Tank and M2A3 Bradley Fighting Vehicle; and

      (B) a description and assessment of alternatives to that strategy, including an assessment of an alternative fielding strategy that provides for placing all of the armored vehicles configured in the latest variant into one heavy corps.

    (2) The assessment of each alternative acquisition and fielding strategy under paragraph (1)(B) shall include the following:

      (A) The relative effects of that strategy on warfighting capabilities in terms of operational effectiveness and training and support efficiencies, taking into consideration the joint warfighting context.

      (B) How that strategy would facilitate the transition to the Future Scout and Cavalry System, the Future Combat System, or other armored systems for the future force structure known as the Army After Next.

      (C) How that strategy fits into the context of overall armored system modernization through 2020.

      (D) Budgetary implications.

      (E) Implications for the national technology and industrial base.

      (F) Innovative techniques and alternatives for maintaining M1A2 System Enhancement Program production.

    (3) The Secretary shall include in the report a draft of any legislation that may be required to execute a given alternative for M1A2 System Enhancement Program production.

    (c) GAO EVALUATION- The Comptroller General shall review the report of the Secretary of the Army under subsection (b) and, not later than 30 days after the date on which that report is submitted to the congressional defense committees, shall submit to those committees a report providing the Comptroller General’s views on the conclusions of the Secretary of the Army set forth in that report.

SEC. 114. REACTIVE ARMOR TILES.

    (a) LIMITATION- None of the funds authorized to be appropriated under section 101(3) or 102(b) may be obligated for the procurement of reactive armor tiles until 30 days after the date on which the Secretary of Defense submits to the congressional defense committees the matters specified in subsection (d).

    (b) EXCEPTION- The limitation in subsection (a) does not apply to the obligation of any funds for the procurement of armor tiles for an armored vehicle for which the Secretary of the Army or, in the case of the Marine Corps, the Secretary of the Navy, had established a requirement for such tiles before the date of the enactment of this Act.

    (c) STUDY REQUIRED- (1) The Secretary of Defense shall contract with an entity independent of the Department of Defense to conduct a study of the operational requirements of the Army and the Marine Corps for reactive armor tiles for armored vehicles and to submit to the Secretary a report on the results of the study.

    (2) The study shall include the following:

      (A) A detailed assessment of the operational requirements of the Army and the Marine Corps for reactive armor tiles for each of the armored vehicles presently in use, including the requirements for each vehicle in its existing configurations and in configurations proposed for the vehicle.

      (B) For each armored vehicle, an analysis of the costs and benefits of the procurement and installation of the tiles, including a comparison of those costs and benefits with the costs and benefits of any existing upgrade program for the armored vehicle.

    (3) The entity carrying out the study shall request the views of the Secretary of the Army and the Secretary of the Navy.

    (d) SUBMISSION TO CONGRESSIONAL COMMITTEES- Not later than April 1, 1999, the Secretary of Defense shall submit to the congressional defense committees--

      (1) the report on the study submitted to the Secretary by the entity carrying out the study;

      (2) the comments of the Secretary of the Army and the Secretary of the Navy on the study; and

      (3) for each vehicle for which there is a requirement for reactive armor tiles, as indicated by the results of the study, the Secretary’s recommendations as to the number of vehicles to be equipped with such tiles.

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

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

Subtitle C--Navy Programs

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

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

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

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

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

    (a) AUTHORITY FOR SPECIFIED NAVY AIRCRAFT PROGRAMS- Beginning with the fiscal year 1999 program year, the Secretary of the Navy may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract for procurement for the following programs:

      (1) The AV-8B aircraft program.

      (2) The T-45TS aircraft program.

      (3) The E-2C aircraft program.

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

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

    (a) REVIEW AND REPORT REQUIRED- Not later than June 15 of each year, the Comptroller General shall review the F/A-18E/F aircraft program and submit to Congress a report on the results of the review. The Comptroller General shall submit to Congress with each such report a certification as to whether the Comptroller General has had access to sufficient information to make informed judgments on the matters covered by the report.

    (b) CONTENT OF REPORT- The report submitted on the program each year shall include the following:

      (1) The extent to which engineering and manufacturing development and operational test and evaluation under the program are meeting the goals established for engineering and manufacturing development and operational test and evaluation under the program, including the performance, cost, and schedule goals.

      (2) The status of modifications expected to have a significant effect on the cost or performance of the F/A-18E/F aircraft.

    (c) DURATION OF REQUIREMENT- No report is required under this section after the full-rate production contract is awarded under the program.

    (d) REQUIREMENT TO SUPPORT ANNUAL GAO REVIEW- The Secretary of Defense and the prime contractors under the F/A-18E/F program shall timely provide the Comptroller General with such information on the program, including information on program performance, as the Comptroller General considers necessary to carry out this section.

Subtitle D--Air Force Programs

SEC. 131. F-22 AIRCRAFT PROGRAM.

    (a) LIMITATION ON ADVANCE PROCUREMENT- (1) Amounts available for the Department of Defense for any fiscal year for the F-22 aircraft program may not be obligated for advance procurement for the six Lot II F-22 aircraft before the applicable date under paragraph (2) or (3).

    (2) The applicable date for the purposes of paragraph (1) is the date on which the Secretary of Defense submits a certification under subsection (b)(1) unless the Secretary submits a report under subsection (b)(2).

    (3) If the Secretary submits a report under subsection (b)(2), the applicable date for the purposes of paragraph (1) is the later of--

      (A) the date on which the Secretary of Defense submits the report; or

      (B) the date on which the Director of Operational Test and Evaluation submits the certification required under subsection (c).

    (b) CERTIFICATION BY SECRETARY OF DEFENSE- (1) Upon the completion of 433 hours of flight testing of F-22 flight test vehicles, the Secretary of Defense shall submit to the congressional defense committees a certification of the completion of that amount of flight testing. A certification is not required under this paragraph if the Secretary submits a report under paragraph (2).

    (2) If the Secretary determines that a number of hours of flight testing of F-22 flight test vehicles less than 433 hours provides the Defense Acquisition Board with a sufficient basis for deciding to proceed into production of Lot II F-22 aircraft, the Secretary may submit a report to the congressional defense committees upon the completion of that lesser number of hours of flight testing. A report under this paragraph shall contain the following:

      (A) A certification of the number of hours of flight testing completed.

      (B) The reasons for the Secretary’s determination that the lesser number of hours is a sufficient basis for a decision by the board.

      (C) A discussion of the extent to which the Secretary’s determination is consistent with each decision made by the Defense Acquisition Board since January 1997 in the case of a major aircraft acquisition program that the amount of flight testing completed for the program was sufficient or not sufficient to justify a decision to proceed into low-rate initial production.

      (D) A determination by the Secretary that it is more financially advantageous for the Department to proceed into production of Lot II F-22 aircraft than to delay production until completion of 433 hours of flight testing, together with the reasons for that determination.

    (c) CERTIFICATION BY THE DIRECTOR OF OPERATIONAL TEST AND EVALUATION- Upon the completion of 183 hours of the flight testing of F-22 flight test vehicles provided for in the test and evaluation master plan for the F-22 aircraft program, as in effect on October 1, 1997, the Director of Operational Test and Evaluation shall submit to the congressional defense committees a certification of the completion of that flight testing.

SEC. 132. C-130J AIRCRAFT PROGRAM.

    Not later than March 1, 1999, the Secretary of Defense shall review the C-130J aircraft program and submit a report on the program to the congressional defense committees. The report shall include at least the following:

      (1) A discussion of the testing planned and the testing conducted under the program, including--

        (A) the testing schedule intended at the beginning of the program;

        (B) the testing schedule as of when the testing commenced; and

        (C) an explanation of the time taken for the testing.

      (2) The cost and schedule of the program, including--

        (A) whether the Department has exercised or plans to exercise contract options for fiscal years 1996, 1997, 1998, and 1999;

        (B) when the Department expects the aircraft to be delivered and how the delivery dates compare to the delivery dates specified in the contract;

        (C) whether the Department expects to make any modification to the negotiated contract price for these aircraft, and the amount and basis for any such modification; and

        (D) whether the Department expects the reported delays and overruns in the development of the aircraft to have any other impact on the cost, schedule, or performance of the aircraft.

Subtitle E--Other Matters

SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) ASSISTANCE TO STATE AND LOCAL GOVERNMENTS- Section 1412 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 50 U.S.C. 1521), is amended by adding at the end of subsection (c) the following:

    ‘(4)(A) In coordination with the Secretary of the Army and in accordance with agreements between the Secretary of the Army and the Director of the Federal Emergency Management Agency, the Director shall carry out a program to provide assistance to State and local governments in developing capabilities to respond to emergencies involving risks to the public health or safety within their jurisdictions that are identified by the Secretary as being risks resulting from--

      ‘(i) the storage of lethal chemical agents and munitions referred to in subsection (a) at military installations in the continental United States; or

      ‘(ii) the destruction of such agents and munitions at facilities referred to in paragraph (1)(B).

    ‘(B) No assistance may be provided under this paragraph after the completion of the destruction of the United States’ stockpile of lethal chemical agents and munitions.

    ‘(C) Not later than December 15 of each year, the Director shall transmit a report to Congress on the activities carried out under this paragraph during the fiscal year preceding the fiscal year in which the report is submitted.’.

    (b) PROGRAM FUNDING- Section 1412(f) of such Act (51 U.S.C. 1521(f)) is amended--

      (1) by striking out ‘IDENTIFICATION OF FUNDS- Funds’ and inserting in lieu thereof ‘IDENTIFICATION OF FUNDS- (1) Funds’; and

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

    ‘(2) Amounts appropriated to the Secretary for the purpose of carrying out subsection (c)(4) shall be promptly made available to the Director of the Federal Emergency Management Agency.’.

    (c) PERIODIC REPORTS- Section 1412(g) of such Act (50 U.S.C. 1521(g)) is amended--

      (1) in paragraph (2)(B)--

        (A) by striking out ‘and’ at the end of clause (v);

        (B) by striking out the period at the end of clause (vi) and inserting in lieu thereof ‘; and’; and

        (C) by adding at the end the following new clause:

        ‘(vii) grants to State and local governments to assist those governments in carrying out functions relating to emergency preparedness and response in accordance with subsection (c)(3).’;

      (2) by redesignating subparagraph (B) (as amended by paragraph (1)) and subparagraph (C) of paragraph (2) as subparagraphs (C) and (D), respectively; and

      (3) by inserting after paragraph (2)(A) the following new subparagraph (B):

      ‘(B) A site-by-site description of actions taken to assist State and local governments (either directly or through the Federal Emergency Management Agency) in carrying out functions relating to emergency preparedness and response in accordance with subsection (c)(3).’.

SEC. 142. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF ASSEMBLED CHEMICAL WEAPONS.

    (a) PROGRAM MANAGEMENT- The program manager for the Assembled Chemical Weapons Assessment shall continue to manage the development and testing (including demonstration and pilot-scale testing) of technologies for the destruction of lethal chemical munitions that are potential or demonstrated alternatives to the baseline incineration program. In performing such management, the program manager shall act independently of the program manager for Chemical Demilitarization and shall report to the Under Secretary of Defense for Acquisition and Technology.

    (b) POST-DEMONSTRATION ACTIVITIES- (1) The program manager for the Assembled Chemical Weapons Assessment may carry out those activities necessary to ensure that an alternative technology for the destruction of lethal chemical munitions can be implemented immediately after--

      (A) the technology has been demonstrated to be successful; and

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

    (2) To prepare for the immediate implementation of any such technology, the program manager may, during fiscal years 1998 and 1999, take the following actions:

      (A) Establish program requirements.

      (B) Prepare procurement documentation.

      (C) Develop environmental documentation.

      (D) Identify and prepare to meet public outreach and public participation requirements.

      (E) Prepare to award a contract for the design, construction, and operation of a pilot facility for the technology to the provider team for the technology not later than December 30, 1999.

    (c) INDEPENDENT EVALUATION- The Under Secretary of Defense for Acquisition and Technology shall provide for an independent evaluation of the cost and schedule of the Assembled Chemical Weapons Assessment, which shall be performed and submitted to the Under Secretary not later than September 30, 1999. The evaluation shall be performed by a nongovernmental organization qualified to make such an evaluation.

    (d) PILOT FACILITIES CONTRACTS- (1) The Under Secretary of Defense for Acquisition and Technology shall determine whether to proceed with pilot-scale testing of a technology referred to in paragraph (2) in time to award a contract for the design, construction, and operation of a pilot facility for the technology to the provider team for the technology not later than December 30, 1999. If the Under Secretary determines to proceed with such testing, the Under Secretary shall (exercising the acquisition authority of the Secretary of Defense) so award a contract not later than such date.

    (2) Paragraph (1) applies to an alternative technology for the destruction of lethal chemical munitions, other than incineration, that the Under Secretary--

      (A) certifies in writing to Congress is--

        (i) as safe and cost effective for disposing of assembled chemical munitions as is incineration of such munitions; and

        (ii) is capable of completing the destruction of such munitions on or before the later of the date by which the destruction of the munitions would be completed if incineration were used or the deadline date for completing the destruction of the munitions under the Chemical Weapons Convention; and

      (B) determines as satisfying the Federal and State environmental and safety laws that are applicable to the use of the technology and to the design, construction, and operation of a pilot facility for use of the technology.

    (3) The Under Secretary shall consult with the National Research Council in making determinations and certifications for the purpose of paragraph (2).

    (4) In this subsection, the term ‘Chemical Weapons Convention’ means the Convention on the Prohibition of Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction, opened for signature on January 13, 1993, together with related annexes and associated documents.

    (e) PLAN FOR PILOT PROGRAM- If the Secretary of Defense proceeds with a pilot program under section 152(f) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521(f)), the Secretary shall prepare a plan for the pilot program and shall submit to Congress a report on such plan (including information on the cost of, and schedule for, implementing the pilot program).

    (f) FUNDING- (1) Of the amount authorized to be appropriated under section 107, funds shall be available for the program manager for the Assembled Chemical Weapons Assessment for the following:

      (A) Demonstrations of alternative technologies under the Assembled Chemical Weapons Assessment.

      (B) Planning and preparation to proceed from demonstration of an alternative technology immediately into the development of a pilot-scale facility for the technology, including planning and preparation for--

        (i) continued development of the technology leading to deployment of the technology for use;

        (ii) satisfaction of requirements for environmental permits;

        (iii) demonstration, testing, and evaluation;

        (iv) initiation of actions to design a pilot plant;

        (v) provision of support at the field office or depot level for deployment of the technology for use; and

        (vi) educational outreach to the public to engender support for the deployment.

      (C) The independent evaluation of cost and schedule required under subsection (c).

    (2) Funds authorized to be appropriated under section 107(1) are authorized to be used for awarding contracts in accordance with subsection (d) and for taking any other action authorized in this section.

    (f) ASSEMBLED CHEMICAL WEAPONS ASSESSMENT DEFINED- In this section, the term ‘Assembled Chemical Weapons Assessment’ means the pilot program carried out under section 8065 of the Department of Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

Subtitle A--Authorization of Appropriations

      Sec.201.Authorization of appropriations.

      Sec.202.Amount for basic and applied research.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec.211.Management responsibility for Navy mine countermeasures programs.

      Sec.212.Future aircraft carrier transition technologies.

      Sec.213.Manufacturing technology program.

      Sec.214.Sense of Congress on the Defense Science and Technology Program.

      Sec.215.Next Generation Internet Program.

      Sec.216.Crusader self-propelled artillery system program.

      Sec.217.Airborne Laser Program.

      Sec.218.Enhanced Global Positioning System program.

Subtitle C--Ballistic Missile Defense

      Sec.231.Sense of Congress on National Missile Defense coverage.

      Sec.232.Limitation on funding for the Medium Extended Air Defense System.

      Sec.233.Limitation on funding for Cooperative Ballistic Missile Defense programs.

      Sec.234.Sense of Congress with respect to Ballistic Missile Defense cooperation with Russia.

      Sec.235.Ballistic Missile Defense program elements.

      Sec.236.Restructuring of acquisition strategy for Theater High-Altitude Area Defense (THAAD) system.

Subtitle D--Other Matters

      Sec.241.Extension of authority to carry out certain prototype projects.

      Sec.242.NATO alliance ground surveillance concept definition.

      Sec.243.NATO common-funded Civil Budget.

      Sec.244.Executive agent for cooperative research program of the Department of Defense and the Department of Veterans Affairs.

      Sec.245.Review of pharmacological interventions for reversing brain injury.

      Sec.246.Pilot program for revitalizing the laboratories and test and evaluation centers of the Department of Defense.

      Sec.247.Chemical warfare defense.

      Sec.248.Landmine alternatives.

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Department of Defense for research, development, test, and evaluation as follows:

      (1) For the Army, $4,657,012,000.

      (2) For the Navy, $8,305,011,000.

      (3) For the Air Force, $13,918,728,000.

      (4) For Defense-wide activities, $9,127,187,000, of which--

        (A) $249,106,000 is authorized for the activities of the Director, Test and Evaluation; and

        (B) $29,245,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) FISCAL YEAR 1999- Of the amounts authorized to be appropriated by section 201, $4,179,905,000 shall be available for basic research and applied research projects.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

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

SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) REQUIREMENTS RELATING TO COMPETITION- Subsection (d)(1) of section 2525 of title 10, United States Code, is amended--

      (1) by striking out ‘(1) Competitive’ and inserting in lieu thereof ‘(1)(A) In accordance with the policy stated in section 2374 of this title, competitive’; and

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

    ‘(B) For each grant awarded and each contract, cooperative agreement, or other transaction entered into on a cost-share basis under the program, the ratio of contract recipient cost to Government cost shall be determined by competitive procedures. For a project for which the Government receives an offer from only one offeror, the contracting officer shall negotiate the ratio of contract recipient cost to Government cost that represents the best value to the Government.’.

    (b) REQUIREMENTS RELATING TO COST SHARE WAIVERS- Subsection (d)(2) of such section is amended--

      (1) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;

      (2) by inserting ‘(A)’ after ‘(2)’; and

      (3) by adding at the end the following new subparagraphs:

    ‘(B) For any grant awarded or contract, cooperative agreement, or other transaction entered into on a basis other than a cost-sharing basis because of a determination made under subparagraph (A), the transaction file for the project concerned must document the rationale for the determination.

    ‘(C) The Secretary of Defense may delegate the authority to make determinations under subparagraph (A) only to the Under Secretary of Defense for Acquisition and Technology or a service acquisition executive, as appropriate.’.

    (c) COST SHARE GOAL- Subsection (d) of such section is amended--

      (1) by striking out paragraph (4); and

      (2) in paragraph (3)--

        (A) by striking out ‘At least’ and inserting in lieu thereof ‘As a goal, at least’;

        (B) by striking out ‘shall’ and inserting in lieu thereof ‘should’; and

        (C) by adding at the end the following: ‘The Secretary of Defense, in coordination with the Secretaries of the military departments and upon recommendation of the Under Secretary of Defense for Acquisition and Technology, shall establish annual objectives to meet such goal.’.

    (d) ADDITIONAL INFORMATION TO BE INCLUDED IN FIVE-YEAR PLAN- Subsection (e)(2) of such section is amended to read as follows:

    ‘(2) The plan shall include the following:

      ‘(A) An assessment of the effectiveness of the program.

      ‘(B) An assessment of the extent to which the costs of projects are being shared by the following:

        ‘(i) Commercial enterprises in the private sector.

        ‘(ii) Department of Defense program offices, including weapon system program offices.

        ‘(iii) Departments and agencies of the Federal Government outside the Department of Defense.

        ‘(iv) Institutions of higher education.

        ‘(v) Other institutions not operated for profit.

        ‘(vi) Other sources.’.

SEC. 214. SENSE OF CONGRESS ON THE DEFENSE SCIENCE AND TECHNOLOGY PROGRAM.

    (a) FUNDING REQUIREMENTS FOR THE DEFENSE SCIENCE AND TECHNOLOGY PROGRAM BUDGET- It is the sense of Congress that, for each of the fiscal years 2000 through 2008, it should be an objective of the Secretary of Defense to increase the budget for the Defense Science and Technology Program for the fiscal year over the budget for that program for the preceding fiscal year by a percent that is at least two percent above the rate of inflation as determined by the Office of Management and Budget.

    (b) Guidelines for the Defense Science and Technology Program-

      (1) RELATIONSHIP OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAM TO UNIVERSITY RESEARCH- It is the sense of Congress that the following should be key objectives of the Defense Science and Technology Program:

        (A) The sustainment of research capabilities in scientific and engineering disciplines critical to the Department of Defense.

        (B) The education and training of the next generation of scientists and engineers in disciplines that are relevant to future defense systems, particularly through the conduct of basic research.

        (C) The continued support of the Defense Experimental Program to Stimulate Competitive Research and research programs at historically black colleges and universities and minority institutions.

      (2) RELATIONSHIP OF THE DEFENSE SCIENCE AND TECHNOLOGY PROGRAM TO COMMERCIAL RESEARCH AND TECHNOLOGY- (A) It is the sense of Congress that, in supporting projects within the Defense Science and Technology Program, the Secretary of Defense should attempt to leverage commercial research, technology, products, and processes for the benefit of the Department of Defense.

      (B) It is the sense of Congress that funds made available for projects and programs of the Defense Science and Technology Program should be used only for the benefit of the Department of Defense, which includes--

        (i) the development of technology that has only military applications;

        (ii) the development of militarily useful, commercially viable technology; and

        (iii) the adaptation of commercial technology, products, or processes for military purposes.

      (3) SYNERGISTIC MANAGEMENT OF RESEARCH AND DEVELOPMENT- It is the sense of Congress that the Secretary of Defense should have the flexibility to allocate a combination of funds available for the Department of Defense for basic and applied research and for advanced development to support any individual project or program within the Defense Science and Technology Program, but such flexibility should not change the allocation of funds in any fiscal year among basic and applied research and advanced development.

      (4) MANAGEMENT OF SCIENCE AND TECHNOLOGY- It is the sense of Congress that--

        (A) management and funding for the Defense Science and Technology Program for each military department should receive a level of priority and leadership attention equal to the level received by program acquisition, and the Secretary of each military department should ensure that a senior official in the department holds the appropriate title and responsibility to ensure effective oversight and emphasis on science and technology;

        (B) to ensure an appropriate long-term focus for investments, a sufficient percentage of science and technology funds should be directed toward new technology areas, and annual reviews should be conducted for ongoing research areas to ensure that those funded initiatives are either integrated into acquisition programs or discontinued when appropriate;

        (C) the Secretary of each military department should take appropriate steps to ensure that sufficient numbers of officers and civilian employees in the department hold advanced degrees in technical fields; and

        (D) of particular concern, the Secretary of the Air Force should take appropriate measures to ensure that sufficient numbers of scientists and engineers are maintained to address the technological challenges faced in the areas of air, space, and information technology.

    (c) STUDY-

      (1) REQUIREMENT- The Secretary of Defense, in cooperation with the National Research Council of the National Academy of Sciences, shall conduct a study on the technology base of the Department of Defense.

      (2) MATTERS COVERED- The study shall--

        (A) result in recommendations on the minimum requirements for maintaining a technology base that is sufficient, based on both historical developments and future projections, to project superiority in air and space weapons systems and in information technology;

        (B) address the effects on national defense and civilian aerospace industries and information technology of reducing funding below the goal described in subsection (a); and

        (C) result in recommendations on the appropriate levels of staff with baccalaureate, masters, and doctorate degrees, and the optimal ratio of civilian and military staff holding such degrees, to ensure that science and technology functions of the Department of Defense remain vital.

      (3) REPORT- Not later than 120 days after the date on which the study required under paragraph (1) is completed, the Secretary shall submit to Congress a report on the results of the study.

    (d) DEFINITIONS- In this section:

      (1) The term ‘Defense Science and Technology Program’ means basic and applied research and advanced development.

      (2) The term ‘basic and applied research’ means work funded in program elements for defense research and development under Department of Defense category 6.1 or 6.2.

      (3) The term ‘advanced development’ means work funded in program elements for defense research and development under Department of Defense category 6.3.

SEC. 215. NEXT GENERATION INTERNET PROGRAM.

    (a) FUNDING- Of the funds authorized to be appropriated under section 201(4), $53,000,000 shall be available for the Next Generation Internet program.

    (b) LIMITATION- Notwithstanding the enactment of any other provision of law after the date of the enactment of this Act, amounts may be appropriated for fiscal year 1999 for research, development, test, and evaluation by the Department of Defense for the Next Generation Internet program only pursuant to the authorization of appropriations under section 201(4).

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

    (a) LIMITATION- Of the amount authorized to be appropriated for the Army pursuant to section 201(1), not more than $223,000,000 may be obligated for the Crusader self-propelled artillery system program until 30 days after the date on which the Secretary of the Army submits the report required under subsection (b).

    (b) REQUIREMENT FOR REPORT- The Secretary of the Army shall submit to the congressional defense committees a report on the Crusader self-propelled artillery system. The report shall include the following:

      (1) An assessment of the risks associated with the current Crusader program technology.

      (2) The total requirements for the Crusader system, taking into consideration revisions in force structure resulting from the redesign of heavy and light divisions to achieve a force structure known as the Army After Next.

      (3) The potential for reducing the weight of the Crusader system by as much as 50 percent.

      (4) The potential for using alternative propellants for the artillery projectile for the Crusader system and the effects on the overall program schedule that would result from taking the actions and time necessary to develop mature technologies for alternative propellants.

      (5) An analysis of the costs and benefits of delaying procurement of the Crusader system to avoid affordability issues associated with the current schedule and to allow for maturation of weight and propellant technologies.

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

SEC. 217. AIRBORNE LASER PROGRAM.

    (a) ASSESSMENT OF TECHNICAL AND OPERATIONAL ASPECTS- The Secretary of Defense shall conduct an assessment of the technical and operational aspects of the Airborne Laser Program. In conducting the assessment, the Secretary shall establish an independent team of persons from outside the Department of Defense who are experts in relevant fields to review the technical and operational aspects of the Airborne Laser Program. The team shall assess the following:

      (1) Whether additional ground testing or other forms of data collection should be completed before initial modification of a commercial aircraft to an Airborne Laser configuration.

      (2) The adequacy of exit criteria for the program definition and risk reduction phase of the Airborne Laser Program.

      (3) The adequacy of current Airborne Laser operational concepts.

    (b) REPORT ON ASSESSMENT- Not later than March 15, 1999, the Secretary shall submit to Congress a report on the assessment. The report shall include the Secretary’s findings and any recommendations that the Secretary considers appropriate.

    (c) FUNDING FOR PROGRAM- Of the amount authorized to be appropriated under section 201(3), $235,219,000 shall be available for the Airborne Laser Program.

    (d) LIMITATION- Of the amount made available pursuant to subsection (c), not more than $185,000,000 may be obligated until 30 days after the Secretary submits the report required by subsection (b).

SEC. 218. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

    (a) POLICY ON PRIORITY FOR DEVELOPMENT OF ENHANCED GPS SYSTEM- The development of an enhanced Global Positioning System is an urgent national security priority.

    (b) DEVELOPMENT REQUIRED- To fulfill the requirements described in section 279(b) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 243) and section 2281 of title 10, United States Code, the Secretary of Defense shall develop an enhanced Global Positioning System in accordance with the priority declared in subsection (a). The enhanced Global Positioning System shall include the following elements:

      (1) An evolved satellite system that includes increased signal power and other improvements such as regional-level directional signal enhancements.

      (2) Enhanced receivers and user equipment that are capable of providing military users with direct access to encrypted Global Positioning System signals.

      (3) To the extent funded by the Secretary of Transportation, additional civil frequencies and other enhancements for civil users.

    (c) SENSE OF CONGRESS REGARDING FUNDING- It is the sense of Congress that--

      (1) the Secretary of Defense should ensure that the future-years defense program provides for sufficient funding to develop and deploy an enhanced Global Positioning System in accordance with the priority declared in subsection (a); and

      (2) the Secretary of Transportation should provide sufficient funding to support additional civil frequencies for the Global Positioning System and other enhancements of the system for civil users.

    (d) PLAN FOR DEVELOPMENT OF ENHANCED GLOBAL POSITIONING SYSTEM- Not later than April 15, 1999, the Secretary of Defense shall submit to Congress a plan for carrying out the requirements of subsection (b).

    (e) DELAYED EFFECTIVE DATE FOR LIMITATION ON PROCUREMENT OF SYSTEMS NOT GPS-EQUIPPED- Section 152(b) of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1578) is amended by striking out ‘2000’ and inserting in lieu thereof ‘2005’.

    (f) FUNDING FROM AUTHORIZED APPROPRIATIONS FOR FISCAL YEAR 1999- Of the amounts authorized to be appropriated under section 201(3), $44,000,000 shall be available to establish and carry out an enhanced Global Positioning System program.

Subtitle C--Ballistic Missile Defense

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

    It is the sense of Congress that--

      (1) any national missile defense system deployed by the United States must provide effective defense against limited, accidental, or unauthorized ballistic missile attack for all 50 States; and

      (2) the territories of the United States should be afforded effective protection against ballistic missile attack.

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

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

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

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

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

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

SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

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

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

    ‘(a) PROGRAM ELEMENTS SPECIFIED- In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31), the amount requested for activities of the Ballistic Missile Defense Organization shall be set forth in accordance with the following program elements:

      ‘(1) The Patriot system.

      ‘(2) The Navy Area system.

      ‘(3) The Theater High-Altitude Area Defense system.

      ‘(4) The Navy Theater Wide system.

      ‘(5) The Medium Extended Air Defense System.

      ‘(6) Joint Theater Missile Defense.

      ‘(7) National Missile Defense.

      ‘(8) Support Technologies.

      ‘(9) Family of Systems Engineering and Integration.

      ‘(10) Ballistic Missile Defense Technical Operations.

      ‘(11) Threat and Countermeasures.

      ‘(12) International Cooperative Programs.

    ‘(b) TREATMENT OF MAJOR DEFENSE ACQUISITION PROGRAMS- Amounts requested for Theater Missile Defense and National Missile Defense major defense acquisition programs shall be specified in individual, dedicated program elements, and amounts appropriated for those programs shall be available only for Ballistic Missile Defense activities.

    ‘(c) MANAGEMENT AND SUPPORT- The amount requested for each program element specified in subsection (a) shall include requests for the amounts necessary for the management and support of the programs, projects, and activities contained in that program element.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 222 the following new item:

      ‘223. Ballistic missile defense programs: program elements.’.

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

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

    (a) ESTABLISHMENT OF COMPETITIVE CONTRACTOR- (1) The Secretary of Defense shall take appropriate steps to implement technical and price competition for the development and production of the interceptor missile for the Theater High-Altitude Area Defense (THAAD) system.

    (2) The Secretary shall take such steps as necessary to ensure that the prime contractor (as of the date of the enactment of this Act) for the THAAD system provides the cooperation needed to establish the technical and price competition required in subsection (a).

    (3) The Secretary shall use the authority provided in section 2304(c)(2) of title 10, United States Code, to expedite the implementation of paragraphs (1) and (2).

    (4) Of the amount made available under section 201(4) for the THAAD System, $29,600,000 shall be available to establish the technical and price competition required in paragraph (1).

    (b) COST SHARING ARRANGEMENT- (1) The Secretary of Defense shall contractually establish with the THAAD interceptor prime contractor an appropriate arrangement for sharing between the United States and that contractor the costs for flight test failures of the interceptor missile for the THAAD system beginning with the flight test numbered 9.

    (2) For purposes of paragraph (1), the term ‘THAAD interceptor prime contractor’ means the firm that as of May 14, 1998, is the prime contractor for the interceptor missile for the Theater High-Altitude Area Defense system.

    (c) ENGINEERING AND MANUFACTURING DEVELOPMENT PHASE FOR OTHER ELEMENTS OF THE THAAD SYSTEM- The Secretary of Defense may proceed with the milestone approval process for the Engineering and Manufacturing Development phase for the Battle Management and Command, Control, and Communications (BM/C3) element of the THAAD system and for the Ground Based Radar (GBR) element for that system without regard to the stage of development of the interceptor missile for that system.

    (d) PLAN FOR CONTINGENCY CAPABILITY- (1) The Secretary of Defense shall prepare a plan that would allow for deployment of THAAD missiles and the other elements of the THAAD system referred to in subsection (c) in response to theater ballistic missile threats that evolve before United States military forces are equipped with the objective configuration of those missiles and elements.

    (2) The Secretary shall submit a report on the plan to the congressional defense committees by December 15, 1998.

    (e) LIMITATION ON ENTERING ENGINEERING AND MANUFACTURING DEVELOPMENT PHASE- (1) The Secretary of Defense may not approve the commencement of the Engineering and Manufacturing Development phase for the interceptor missile for the THAAD system until there have been 3 successful tests of that missile.

    (2) For purposes of paragraph (1), a successful test of the interceptor missile of the THAAD system is a body-to-body intercept by that missile of a ballistic missile target.

Subtitle D--Other Matters

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

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

SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

    Amounts authorized to be appropriated under section 201 are available for a NATO alliance ground surveillance concept definition that is based on the Joint Surveillance Target Attack Radar System (Joint STARS) Radar Technology Insertion Program (RTIP) sensor of the United States, as follows:

      (1) Of the amount authorized to be appropriated under section 201(1), $6,400,000.

      (2) Of the amount authorized to be appropriated under section 201(3), $3,500,000.

SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

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

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

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

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

    (a) REVIEW AND REPORT REQUIRED- The Assistant Secretary of Defense for Health Affairs shall review research on pharmacological interventions for reversing brain injury and, not later than March 31, 1999, submit a report on the results of the review to Congress.

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

      (1) The potential for pharmacological interventions for reversing brain injury to reduce mortality and morbidity in cases of head injuries incurred in combat or resulting from exposures to chemical weapons or agents.

      (2) The potential utility of such interventions for the Armed Forces.

      (3) A conclusion regarding whether funding for research on such interventions should be included in the budget for the Department of Defense for fiscal year 2000.

SEC. 246. PILOT PROGRAM FOR REVITALIZING THE LABORATORIES AND TEST AND EVALUATION CENTERS OF THE DEPARTMENT OF DEFENSE.

    (a) PILOT PROGRAM- (1) The Secretary of Defense may carry out a pilot program to demonstrate improved cooperative relationships with universities and other private sector entities for the performance of research and development functions.

    (2) Under the pilot program, the Secretary of Defense shall provide the director of one science and technology laboratory, and the director of one test and evaluation center, of each military department with authority for the following:

      (A) To explore innovative methods for quickly, efficiently, and fairly entering into cooperative relationships with universities and other private sector entities with respect to the performance of research and development functions.

      (B) To waive any restrictions on the demonstration and implementation of such methods that are not required by law.

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

    (3) In selecting the laboratories and centers for participation in the pilot program, the Secretary shall consider laboratories and centers where innovative management techniques have been demonstrated, particularly as documented under sections 1115 through 1119 of title 31, United States Code, relating to Government agency performance and results.

    (4) The Secretary may carry out the pilot program at each selected laboratory and center for a period of three years beginning not later than March 1, 1999.

    (b) REPORTS- (1) Not later than March 1, 1999, the Secretary of Defense shall submit a report on the implementation of the pilot program to Congress. The report shall include the following:

      (A) Each laboratory and center selected for the pilot program.

      (B) To the extent possible, a description of the innovative concepts that are to be tested at each laboratory or center.

      (C) The criteria to be used for measuring the success of each concept to be tested.

    (2) Promptly after the expiration of the period for participation of a laboratory or center in the pilot program, the Secretary of Defense shall submit to Congress a final report on the participation of the laboratory or center in the pilot program. The report shall contain the following:

      (A) A description of the concepts tested.

      (B) The results of the testing.

      (C) The lessons learned.

      (D) Any proposal for legislation that the Secretary recommends on the basis of the experience at the laboratory or center under the pilot program.

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

SEC. 247. CHEMICAL WARFARE DEFENSE.

    (a) REVIEW AND MODIFICATION OF POLICIES AND DOCTRINES- The Secretary of Defense shall review the policies and doctrines of the Department of Defense on chemical warfare defense and modify the policies and doctrine as appropriate to achieve the objectives set forth in subsection (b).

    (b) OBJECTIVES- The objectives for the modification of policies and doctrines of the Department of Defense on chemical warfare defense are as follows:

      (1) To provide for adequate protection of personnel from any exposure to a chemical warfare agent (including chronic and low-level exposure to a chemical warfare agent) that would endanger the health of exposed personnel because of the deleterious effects of--

        (A) a single exposure to the agent;

        (B) exposure to the agent concurrently with other dangerous exposures, such as exposures to--

          (i) other potentially toxic substances in the environment, including pesticides, other insect and vermin control agents, and environmental pollutants;

          (ii) low-grade nuclear and electromagnetic radiation present in the environment;

          (iii) preventive medications (that are dangerous when taken concurrently with other dangerous exposures referred to in this paragraph);

          (iv) diesel fuel, jet fuel, and other hydrocarbon-based fuels; and

          (v) occupational hazards, including battlefield hazards; and

        (C) repeated exposures to the agent, or some combination of one or more exposures to the agent and other dangerous exposures referred to in subparagraph (B), over time.

      (2) To provide for--

        (A) the prevention of and protection against, and the detection (including confirmation) of, exposures to a chemical warfare agent (whether intentional or inadvertent) at levels that, even if not sufficient to endanger health immediately, are greater than the level that is recognized under Department of Defense policies as being the maximum safe level of exposure to that agent for the general population; and

        (B) the recording, reporting, coordinating, and retaining of information on possible exposures described in subparagraph (A), including the monitoring of the health effects of exposures on humans and animals, environmental effects, and ecological effects, and the documenting and reporting of those effects specifically by location.

      (3) To provide solutions for the concerns and mission requirements that are specifically applicable for one or more of the Armed Forces in a protracted conflict when exposures to chemical agents could be complex, dynamic, and occurring over an extended period.

    (c) RESEARCH PROGRAM- The Secretary of Defense shall develop and carry out a plan to establish a research program for determining the effects of exposures to chemical warfare agents of the type described in subsection (b). The research shall be designed to yield results that can guide the Secretary in the evolution of policy and doctrine on exposures to chemical warfare agents and to develop new risk assessment methods and instruments with respect to such exposures. The plan shall state the objectives and scope of the program and include a 5-year funding plan.

    (d) REPORT- Not later than May 1, 1999, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the results of the review under subsection (a) and on the research program developed under subsection (c). The report shall include the following:

      (1) Each modification of chemical warfare defense policy and doctrine resulting from the review.

      (2) Any recommended legislation regarding chemical warfare defense.

      (3) The plan for the research program.

SEC. 248. LANDMINE ALTERNATIVES.

    (a) AVAILABILITY OF FUNDS- (1) Of the amounts authorized to be appropriated in section 201, not more than $19,200,000 shall be available for activities relating to the identification, adaptation, modification, research, and development of existing and new technologies and concepts that--

      (A) would provide a combat capability that is equivalent to the combat capability provided by non-self destructing anti-personnel landmines;

      (B) would provide a combat capability that is equivalent to the combat capability provided by anti-personnel submunitions used in mixed anti-tank mine systems; or

      (C) would provide a combat capability that is equivalent to the combat capability provided by current mixed mine systems.

    (2) Of the amount available under paragraph (1)--

      (A) not more than $17,200,000 shall be made available for activities referred to in subparagraph (A) of that paragraph for the current efforts of the Army referred to as the Non-Self Destruct Alternative; and

      (B) not more than $2,000,000 shall be made available for activities referred to in subparagraphs (B) or (C) of that paragraph that relate to anti-personnel submunitions used in mixed mine systems or an alternative for mixed munitions.

    (b) FUNDING FOR RESEARCH INTO ALTERNATIVES TO ANTI-PERSONNEL SUBMUNITIONS USED IN MIXED MINE SYSTEMS OR AN ALTERNATIVE FOR MIXED MUNITIONS- The Secretary shall include with the materials submitted to Congress with the budget for fiscal year 2000 under section 1105 of title 31, United States Code, an explanation of any funds requested to support a search for existing and new technologies and concepts that could provide a combat capability equivalent to the combat capability provided by anti-personnel submunitions used in mixed mine systems or an alternative to mixed munitions.

    (c) STUDIES- The Secretary of Defense shall enter into two contracts, each with an appropriate scientific organization--

      (1) to carry out a study on existing and new technologies and concepts referred to in subsection (a); and

      (2) to submit to the Secretary a report on the study, including any recommendations considered appropriate by the scientific organization.

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

      Sec.301.Operation and maintenance funding.

      Sec.302.Working capital funds.

      Sec.303.Armed Forces Retirement Home.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec.311.Refurbishment of M1-A1 tanks.

      Sec.312.Operation of prepositioned fleet, National Training Center, Fort Irwin, California.

      Sec.313.Berthing space at Norfolk Naval Shipyard, Virginia.

      Sec.314.NATO common-funded military budget.

Subtitle C--Environmental Provisions

      Sec.321.Settlement of claims of foreign governments for environmental cleanup of overseas sites formerly used by the Department of Defense.

      Sec.322.Authority to pay negotiated settlement for environmental cleanup of formerly used defense sites in Canada.

      Sec.323.Removal of underground storage tanks.

      Sec.324.Report regarding polychlorinated biphenyl waste under Department of Defense control overseas.

      Sec.325.Modification of deadline for submittal to Congress of annual reports on environmental activities.

      Sec.326.Submarine solid waste control.

      Sec.327.Arctic Military Environmental Cooperation Program.

      Sec.328.Sense of Congress regarding oil spill prevention training for personnel on board Navy vessels.

Subtitle D--Information Technology Issues

      Sec.331.Additional information technology responsibilities of Chief Information Officers.

      Sec.332.Defense-wide electronic mall system for supply purchases.

      Sec.333.Priority funding to ensure year 2000 compliance of information technology and national security systems.

      Sec.334.Evaluation of year 2000 compliance as part of training exercises programs.

      Sec.335.Continuity of essential operations at risk of failure because of information technology and national security systems that are not year 2000 compliant.

Subtitle E--Defense Infrastructure Support Improvement

      Sec.341.Clarification of definition of depot-level maintenance and repair.

      Sec.342.Reporting and analysis requirements before change of commercial and industrial type functions to private sector performance.

      Sec.343.Notifications of determinations of military items as being commercial items for purposes of the exception to requirements regarding core logistics capabilities.

      Sec.344.Oversight of development and implementation of automated identification technology.

      Sec.345.Contractor-operated civil engineering supply stores program.

      Sec.346.Conditions on expansion of functions performed under prime vendor contracts for depot-level maintenance and repair.

      Sec.347.Best commercial inventory practices for management of secondary supply items.

      Sec.348.Personnel reductions in Army Materiel Command.

      Sec.349.Inventory management of in-transit items.

      Sec.350.Review of Defense Automated Printing Service functions.

      Sec.351.Development of plan for establishment of core logistics capabilities for maintenance and repair of C-17 aircraft.

Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

      Sec.361.Continuation of management and funding of Defense Commissary Agency through the Office of the Secretary of Defense.

      Sec.362.Expansion of current eligibility of Reserves for commissary benefits.

      Sec.363.Costs payable to the Department of Defense and other Federal agencies for services provided to the Defense Commissary Agency.

      Sec.364.Collection of dishonored checks presented at commissary stores.

      Sec.365.Restrictions on patron access to, and purchases in, overseas commissaries and exchange stores.

      Sec.366.Repeal of requirement for Air Force to sell tobacco products to enlisted personnel.

      Sec.367.Prohibition on consolidation or other organizational changes of Department of Defense retail systems.

      Sec.368.Defense Commissary Agency telecommunications.

      Sec.369.Survey of commissary store patrons regarding satisfaction with commissary store merchandise.

Subtitle G--Other Matters

      Sec.371.Eligibility requirements for attendance at Department of Defense domestic dependent elementary and secondary schools.

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

      Sec.373.Department of Defense readiness reporting system.

      Sec.374.Specific emphasis of program to investigate fraud, waste, and abuse within Department of Defense.

      Sec.375.Condition for providing financial assistance for support of additional duties assigned to the Army National Guard.

      Sec.376.Demonstration program to improve quality of personal property shipments of members.

      Sec.377.Pilot program for acceptance and use of landing fees charged for use of domestic military airfields by civil aircraft.

      Sec.378.Strategic plan for expansion of distance learning initiatives.

      Sec.379.Public availability of operating agreements between military installations and financial institutions.

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

      (1) For the Army, $17,002,563,000.

      (2) For the Navy, $21,577,702,000.

      (3) For the Marine Corps, $2,528,603,000.

      (4) For the Air Force, $18,690,633,000.

      (5) For Defense-wide activities, $10,550,076,000.

      (6) For the Army Reserve, $1,198,022,000.

      (7) For the Naval Reserve, $920,639,000.

      (8) For the Marine Corps Reserve, $117,893,000.

      (9) For the Air Force Reserve, $1,722,796,000.

      (10) For the Army National Guard, $2,564,315,000.

      (11) For the Air National Guard, $3,047,433,000.

      (12) For the Defense Inspector General, $130,764,000.

      (13) For the United States Court of Appeals for the Armed Forces, $7,324,000.

      (14) For Environmental Restoration, Army, $370,640,000.

      (15) For Environmental Restoration, Navy, $274,600,000.

      (16) For Environmental Restoration, Air Force, $372,100,000.

      (17) For Environmental Restoration, Defense-wide, $25,091,000.

      (18) For Environmental Restoration, Formerly Used Defense Sites, $195,000,000.

      (19) For Overseas Humanitarian, Disaster, and Civic Aid programs, $50,000,000.

      (20) For Drug Interdiction and Counter-drug Activities, Defense-wide, $725,582,000.

      (21) For the Kaho’olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund, $15,000,000.

      (22) For Defense Health Program, $9,617,435,000.

      (23) For Cooperative Threat Reduction programs, $440,400,000.

      (24) For Overseas Contingency Operations Transfer Fund, $746,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

      (1) For the Defense Working Capital Funds, $1,076,571,000.

      (2) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

    (a) TRANSFER AUTHORITY- To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to operation and maintenance accounts for fiscal year 1999 in amounts as follows:

      (1) For the Army, $50,000,000.

      (2) For the Navy, $50,000,000.

      (3) For the Air Force, $50,000,000.

    (b) TREATMENT OF TRANSFERS- Amounts transferred under this section--

      (1) shall be merged with, and be available for the same purposes and the same period as, the amounts in the accounts to which transferred; and

      (2) may not be expended for an item that has been denied authorization of appropriations by Congress.

    (c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY- The transfer authority provided in this section is in addition to the transfer authority provided in section 1001.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

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

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

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

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

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

SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

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

Subtitle C--Environmental Provisions

SEC. 321. SETTLEMENT OF CLAIMS OF FOREIGN GOVERNMENTS FOR ENVIRONMENTAL CLEANUP OF OVERSEAS SITES FORMERLY USED BY THE DEPARTMENT OF DEFENSE.

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

    (b) AUTHORIZATION REQUIRED FOR USE OF FUNDS FOR PAYMENT OF SETTLEMENT- No funds may be used for any payment under an ex-gratia settlement of any claims described in subsection (a) unless the use of the funds for that purpose is specifically authorized by law or international agreement, including a treaty.

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

    (a) FINDINGS- Congress makes the following findings with respect to the authorization of payment of settlement with Canada in subsection (b) regarding environmental cleanup at formerly used defense sites in Canada:

      (1) A unique and longstanding national security alliance exists between the United States and Canada.

      (2) The sites covered by the settlement were formerly used by the United States and Canada for their mutual defense.

      (3) There is no formal treaty or international agreement between the United States and Canada regarding the environmental cleanup of the sites.

      (4) Environmental contamination at some of the sites could pose a substantial risk to the health and safety of the United States citizens residing in States near the border between the United States and Canada.

      (5) The United States and Canada reached a negotiated agreement for an ex-gratia reimbursement of Canada in full satisfaction of claims of Canada relating to environmental contamination which agreement was embodied in an exchange of Notes between the Government of the United States and the Government of Canada.

      (6) There is a unique factual basis for authorizing a reimbursement of Canada for environmental cleanup at sites in Canada after the United States departure from such sites.

      (7) The basis for and authorization of such reimbursement does not extend to similar claims by other nations.

      (8) The Government of Canada is committed to spending the entire $100,000,000 of the reimbursement authorized in subsection (b) in the United States, which will benefit United States industry and United States workers.

    (b) AUTHORITY TO MAKE PAYMENTS- (1) Subject to subsection (c), the Secretary of Defense may, using funds specified under subsection (d), make a payment described in paragraph (2) for each fiscal year through fiscal year 2008 for purposes of the ex-gratia reimbursement of Canada in full satisfaction of any and all claims asserted against the United States by Canada for environmental cleanup of sites in Canada that were formerly used for the mutual defense of the United States and Canada.

    (2) A payment referred to in paragraph (1) is a payment of $10,000,000, in constant fiscal year 1996 dollars, into the Foreign Military Sales Trust Account for purposes of Canada.

    (c) CONDITION ON AUTHORITY FOR SUBSEQUENT FISCAL YEARS- A payment may be made under subsection (b) for a fiscal year after fiscal year 1999 only if the Secretary of Defense submits to Congress with the budget for such fiscal year under section 1105 of title 31, United States Code, evidence that the cumulative amount expended by the Government of Canada for environmental cleanup activities in Canada during any fiscal years before such fiscal year in which a payment under that subsection was authorized was an amount equal to or greater than the aggregate amount of the payments under that subsection during such fiscal years.

    (d) SOURCE OF FUNDS- (1) The payment under subsection (b) for fiscal year 1998 shall be made from amounts appropriated pursuant to section 301(5) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1669).

    (2) The payment under subsection (b) for fiscal year 1999 shall be made from amounts appropriated pursuant to section 301(5).

    (3) For a fiscal year after fiscal year 1999, a payment may be made under subsection (b) from amounts appropriated pursuant to the authorization of appropriations for the Department of Defense for such fiscal year for Operation and Maintenance, Defense-Wide.

SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

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

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

    (a) REPORT REQUIRED- (1) Not later than March 1, 1999, the Secretary of Defense shall submit to the committees specified in paragraph (2) a report on the status of foreign-manufactured polychlorinated biphenyl waste. The Secretary shall prepare the report in consultation with the Administrator of the Environmental Protection Agency and the Secretary of State.

    (2) The committees referred to in paragraph (1) are the following:

      (A) The Committee on Armed Services and the Committee on Environment and Public Works of the Senate.

      (B) The Committee on National Security, the Committee on Commerce, and the Committee on Transportation and Infrastructure of the House of Representatives.

    (b) ELEMENTS OF REPORT- The report under subsection (a) shall include the following:

      (1) The identity of each foreign country from which the Secretary of Defense anticipates that the Department of Defense will need to transport foreign-manufactured polychlorinated biphenyl waste into the customs territory of the United States.

      (2) For each foreign country identified under paragraph (1), an inventory of the type, concentrations, and estimated quantity of foreign-manufactured polychlorinated biphenyl waste involved, the reasons why disposal of the polychlorinated biphenyl waste in the foreign country is not available, the identity of other locations or facilities where disposal of the polychlorinated biphenyl waste in an environmentally sound manner is available, and the availability of alternative technologies and mobile units for polychlorinated biphenyl waste treatment or disposal.

      (3) An accounting of all foreign-manufactured polychlorinated biphenyl waste that exists as of the date of the enactment of this Act and as of the date of the report.

      (4) An estimate of the volume of foreign-manufactured polychlorinated biphenyl waste that is likely to be generated annually in each of the next 5 calendar years, and the basis for each such estimate.

      (5) A description of any hazards to human health or the environment posed by foreign-manufactured polychlorinated biphenyl waste.

      (6) A description of any international or domestic legal impediments that the Department has experienced in disposing of foreign-manufactured polychlorinated biphenyl waste in an environmentally sound manner.

      (7) A description of any efforts undertaken by the Department to seek relief from legal impediments to the disposal of foreign-manufactured polychlorinated biphenyl waste, including the relief available pursuant to section 6(e) or 22 of the Toxic Substances Control Act (15 U.S.C. 2605(e), 2621).

      (8) The identity of the possible disposal or treatment facilities in the United States that would be used if foreign-manufactured polychlorinated biphenyl waste were transported into the customs territory of the United States, and the method of disposal or treatment at each such facility.

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

    (c) RECOMMENDATIONS- The report shall also include such recommendations as the Secretary of Defense, with the concurrence of the Administrator of the Environmental Protection Agency and the Secretary of State, considers necessary regarding changes to United States law to allow for the disposal, in an environmentally sound manner, of foreign-manufactured polychlorinated biphenyl waste, together with a statement of whether and how such changes would be consistent with international law, including the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal and the Protocol to the Convention on Long-Range Transboundary Air Pollution on Persistent Organic Pollutants.

    (d) DEFINITIONS- In this section:

      (1) The term ‘polychlorinated biphenyl waste’ means--

        (A) polychlorinated biphenyls; and

        (B) materials containing polychlorinated biphenyls;

      that are ready for disposal.

      (2) The term ‘foreign-manufactured polychlorinated biphenyl waste’ means polychlorinated biphenyl waste that is owned by the Department of Defense and situated outside of the United States and that consists of--

        (A) polychlorinated biphenyls; or

        (B) materials containing polychlorinated biphenyls;

      that were manufactured outside of the United States.

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

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

SEC. 326. SUBMARINE SOLID WASTE CONTROL.

    (a) SOLID WASTE DISCHARGE REQUIREMENTS- Subsection (c)(2) of section 3 of the Act to Prevent Pollution from Ships (33 U.S.C. 1902) is amended--

      (1) in subparagraph (A), by adding at the end the following:

      ‘(iii) With regard to a submersible, nonplastic garbage that has been compacted and weighted to ensure negative buoyancy.’; and

      (2) in subparagraph (B)(ii), by striking out ‘subparagraph (A)(ii)’ and inserting in lieu thereof ‘clauses (ii) and (iii) of subparagraph (A)’.

    (b) CONFORMING AMENDMENT- Subsection (e)(3)(A) of that section is amended by striking out ‘garbage that contains more than the minimum amount practicable of’.

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

    (a) ACTIVITIES UNDER PROGRAM- (1) Subject to paragraph (2), activities under the Arctic Military Environmental Cooperation Program of the Department of Defense shall include cooperative activities on environmental matters in the Arctic region with the military departments and agencies of other countries, including the Russian Federation.

    (2) Activities under the Arctic Military Environmental Cooperation Program may not include any activities for purposes for which funds for Cooperative Threat Reduction programs have been denied or are prohibited, including the purposes for which funds are prohibited by section 1503 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2732).

    (b) PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS- The Secretary of Defense shall submit to the congressional defense committees a report at least 15 days before the obligation of any funds for the Arctic Military Environmental Cooperation Program. Each such report shall specify--

      (1) the amount of the proposed obligation;

      (2) the activities for which the Secretary plans to obligate such funds; and

      (3) the terms of the implementing agreement between the United States and the foreign government concerning the activity to be undertaken, including the financial and other responsibilities of each government.

    (c) AVAILABILITY OF FISCAL YEAR 1999 FUNDS- (1) Of the amount authorized to be appropriated by section 301(5), $4,000,000 shall be available for carrying out the Arctic Military Environmental Cooperation Program.

    (2) Amounts available for the Arctic Military Environmental Cooperation Program under paragraph (1) may not be obligated or expended for that Program until 45 days after the date on which the Secretary of Defense submits to the congressional defense committees a plan for the Program under paragraph (3).

    (3) The plan for the Arctic Military Environmental Cooperation Program under this paragraph shall include the following:

      (A) A statement of the overall goals and objectives of the Program.

      (B) A statement of the proposed activities under the Program and the relationship of such activities to the national security interests of the United States.

      (C) An assessment of the compatibility of the activities set forth under subparagraph (B) with the purposes of the Cooperative Threat Reduction programs of the Department of Defense (including with any prohibitions and limitations applicable to such programs).

      (D) An estimate of the funding to be required and requested in future fiscal years for the activities set forth under subparagraph (B).

      (E) A proposed termination date for the Program.

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

    (a) FINDINGS- Congress makes the following findings:

      (1) There have been six significant oil spills in Puget Sound, Washington, in 1998, five at Puget Sound Naval Shipyard (including three from the U.S.S. Kitty Hawk, one from the U.S.S. Carl Vinson, and one from the U.S.S. Sacramento) and one at Naval Station Everett from the U.S.S. Paul F. Foster.

      (2) Navy personnel on board vessels, and not shipyard employees, were primarily responsible for a majority of these oil spills at Puget Sound Naval Shipyard.

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

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

Subtitle D--Information Technology Issues

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

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

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

    ‘(a) ADDITIONAL RESPONSIBILITIES OF CHIEF INFORMATION OFFICER OF DEPARTMENT OF DEFENSE- In addition to the responsibilities provided for in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1425), the Chief Information Officer of the Department of Defense shall--

      ‘(1) review and provide recommendations to the Secretary of Defense on Department of Defense budget requests for information technology and national security systems;

      ‘(2) ensure the interoperability of information technology and national security systems throughout the Department of Defense;

      ‘(3) ensure that information technology and national security systems standards that will apply throughout the Department of Defense are prescribed; and

      ‘(4) provide for the elimination of duplicate information technology and national security systems within and between the military departments and Defense Agencies.

    ‘(b) ADDITIONAL RESPONSIBILITIES OF CHIEF INFORMATION OFFICER OF MILITARY DEPARTMENTS- In addition to the responsibilities provided for in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1425), the Chief Information Officer of a military department, with respect to the military department concerned, shall--

      ‘(1) review budget requests for all information technology and national security systems;

      ‘(2) ensure that information technology and national security systems are in compliance with standards of the Government and the Department of Defense;

      ‘(3) ensure that information technology and national security systems are interoperable with other relevant information technology and national security systems of the Government and the Department of Defense; and

      ‘(4) coordinate with the Joint Staff with respect to information technology and national security systems.

    ‘(c) DEFINITIONS- In this section:

      ‘(1) The term ‘Chief Information Officer’ means the senior official designated by the Secretary of Defense or a Secretary of a military department pursuant to section 3506 of title 44.

      ‘(2) The term ‘information technology’ has the meaning given that term by section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

      ‘(3) The term ‘national security system’ has the meaning given that term by section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).’.

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

      ‘2223. Information technology: additional responsibilities of Chief Information Officers.’.

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

SEC. 332. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY PURCHASES.

    (a) ELECTRONIC MALL SYSTEM DEFINED- In this section, the term ‘electronic mall system’ means an electronic system for displaying, ordering, and purchasing supplies and materiel available from sources within the Department of Defense and from the private sector.

    (b) DEVELOPMENT AND MANAGEMENT- (1) Using systems and technology available in the Department of Defense as of the date of the enactment of this Act, the Joint Electronic Commerce Program Office of the Department of Defense shall develop a single, defense-wide electronic mall system, which shall provide a single, defense-wide electronic point of entry and a single view, access, and ordering capability for all Department of Defense electronic catalogs. The Secretary of each military department and the head of each Defense Agency shall provide to the Joint Electronic Commerce Program Office the necessary and requested data to ensure compliance with this paragraph.

    (2) The Defense Logistics Agency, under the direction of the Joint Electronic Commerce Program Office, shall be responsible for maintaining the defense-wide electronic mall system developed under paragraph (1).

    (c) ROLE OF CHIEF INFORMATION OFFICER- The Chief Information Officer of the Department of Defense shall be responsible for--

      (1) overseeing the elimination of duplication and overlap among Department of Defense electronic catalogs; and

      (2) ensuring that such catalogs utilize technologies and formats compliant with the requirements of subsection (b).

    (d) IMPLEMENTATION- Within 180 days after the date of the enactment of this Act, the Chief Information Officer shall develop and provide to the congressional defense committees--

      (1) an inventory of all existing and planned electronic mall systems in the Department of Defense; and

      (2) a schedule for ensuring that each such system is compliant with the requirements of subsection (b).

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

    (a) FUNDS FOR COMPLETION OF YEAR 2000 CONVERSION- None of the funds authorized to be appropriated pursuant to this Act may (except as provided in subsection (b)) be obligated or expended on the development or modernization of any information technology or national security system of the Department of Defense in use by the Department of Defense (whether or not the system is a mission critical system) if the date-related data processing capability of that system does not meet certification level 1a, 1b, or 2 (as prescribed in the April 1997 publication of the Department of Defense entitled ‘Year 2000 Management Plan’).

    (b) EXCEPTION FOR CERTAIN INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS- The limitation in subsection (a) does not apply to an obligation or expenditure for an information technology or national security system that is reported to the Office of the Secretary of Defense by October 1, 1998, in accordance with the preparation instructions for the May 1998 Department of Defense quarterly report on the status of year 2000 compliance, if--

      (1) the obligation or expenditure is directly related to ensuring that the reported system achieves year 2000 compliance;

      (2) the system is being developed and fielded to replace, before January 1, 2000, a noncompliant system or a system to be terminated in accordance with the May 1998 Department of Defense quarterly report on the status of year 2000 compliance; or

      (3) the obligation or expenditure is required for a particular change that is specifically required by law or that is specifically directed by the Secretary of Defense.

    (c) UNALLOCATED REDUCTIONS OF FUNDS NOT TO APPLY TO MISSION CRITICAL SYSTEMS- Funds authorized to be appropriated pursuant to this Act for mission critical systems are not subject to any unallocated reduction of funds made by or otherwise applicable to funds authorized to be appropriated pursuant to this Act.

    (d) CURRENT SERVICES OPERATIONS NOT AFFECTED- Subsection (a) does not prohibit the obligation or expenditure of funds for current services operations of information technology and national security systems.

    (e) WAIVER AUTHORITY- The Secretary of Defense may waive subsection (a) on a case-by-case basis with respect to an information technology or national security system if the Secretary provides the congressional defense committees with written notice of the waiver, including the reasons for the waiver and a timeline for the testing and certification of the system as year 2000 compliant.

    (f) REQUIRED REPORT- (1) Not later than December 1, 1998, the Secretary of Defense shall submit to the congressional defense committees a report describing--

      (A) an executable strategy to be used throughout the Department of Defense to test information technology and national security systems for year 2000 compliance (to include functional capability tests and military exercises);

      (B) the plans of the Department of Defense for ensuring that adequate resources (such as testing facilities, tools, and personnel) are available to ensure that all mission critical systems achieve year 2000 compliance; and

      (C) the criteria and process to be used to certify a system as year 2000 compliant.

    (2) The report shall also include--

      (A) an updated list of all mission critical systems; and

      (B) guidelines for developing contingency plans for the functioning of each information technology or national security system in the event of a year 2000 problem in any such system.

    (g) CAPABILITY CONTINGENCY PLANS- Not later than December 30, 1998, the Secretary of Defense shall have in place contingency plans to ensure continuity of operations for every critical mission or function of the Department of Defense that is dependent on an information technology or national security system.

    (h) INSPECTOR GENERAL EVALUATION- The Inspector General of the Department of Defense shall selectively audit information technology and national security systems certified as year 2000 compliant to evaluate the ability of systems to successfully operate during the actual year 2000, including the ability of the systems to access and transmit information from point of origin to point of termination.

    (i) DEFINITIONS- For purposes of this section:

      (1) The term ‘information technology’ has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

      (2) The term ‘national security system’ has the meaning given that term in section 5142 of such Act (40 U.S.C. 1452).

      (3) The term ‘development or modernization’ has the meaning given that term in paragraph E of section 180203 of the Department of Defense Financial Management Regulation (DOD 7000.14-R), but does not include any matter covered by subparagraph 3 of that paragraph.

      (4) The term ‘current services’ has the meaning given that term in paragraph C of section 180203 of the Department of Defense Financial Management Regulation (DOD 7000.14-R).

      (5) The term ‘mission critical system’ means an information technology or national security system that is designated as mission critical in the May 1998 Department of Defense quarterly report on the status of year 2000 compliance.

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

    (a) REPORT ON EVALUATION PLAN- Not later than December 15, 1998, the Secretary of Defense shall submit to Congress a plan for the execution of a simulated year 2000 as part of military exercises described in subsection (c) in order to evaluate, in an operational environment, the extent to which information technology and national security systems involved in those exercises will successfully operate during the actual year 2000, including the ability of those systems to access and transmit information from point of origin to point of termination.

    (b) EVALUATION OF COMPLIANCE IN SELECTED EXERCISES- In conducting the military exercises described in subsection (c), the Secretary of Defense shall ensure that--

      (1) at least 25 of those exercises (referred to in this section as ‘year 2000 simulation exercises’) are conducted so as to include a simulated year 2000 in accordance with the plan submitted under subsection (a);

      (2) at least two of those exercises are conducted by the commander of each unified or specified combatant command; and

      (3) all mission critical systems that are expected to be used if the Armed Forces are involved in a conflict in a major theater of war are tested in at least two exercises.

    (c) COVERED MILITARY EXERCISES- A military exercise referred to in this section is a military exercise conducted by the Department of Defense, during the period beginning on January 1, 1999, and ending on September 30, 1999--

      (1) under the training exercises program known as the ‘CJCS Exercise Program’;

      (2) at the Naval Strike and Air Warfare Center, the Army National Training Center, or the Air Force Air Warfare Center; or

      (3) as part of Naval Carrier Group fleet training or Marine Corps Expeditionary Unit training.

    (d) ALTERNATIVE TESTING METHOD- In the case of an information technology or national security system for which a simulated year 2000 test as part of a military exercise described in subsection (c) is not feasible or presents undue risk, the Secretary of Defense shall test the system using a functional end-to-end test or through a Defense Major Range and Test Facility Base. The Secretary shall include the plans for these tests in the plan required by subsection (a). Tests under this subsection are in addition to the 25 tests required by subsection (b).

    (e) AUTHORITY FOR EXCLUSION OF SYSTEMS NOT CAPABLE OF PERFORMING RELIABLY IN YEAR 2000 SIMULATION- (1) In carrying out a year 2000 simulation exercise, the Secretary of Defense may exclude a particular information technology or national security system from the year 2000 simulation phase of the exercise if the Secretary determines that the system would be incapable of performing reliably during the year 2000 simulation phase of the exercise. In such a case, the system excluded shall be replaced in accordance with the year 2000 contingency plan for the system.

    (2) If the Secretary of Defense excludes an information technology or national security system from the year 2000 simulation phase of an exercise as provided in paragraph (1), the Secretary shall notify Congress of that exclusion not later than two weeks before commencing that exercise. The notice shall include a list of each information technology or national security system excluded from the exercise, a description of how the exercise will use the year 2000 contingency plan for each such system, and a description of the effect that continued year 2000 noncompliance of each such system would have on military readiness.

    (3) An information technology or national security system with cryptological applications that is not capable of having its internal clock adjusted forward to a simulated later time is exempt from the year 2000 simulation phase of an exercise under this section.

    (f) COMPTROLLER GENERAL REVIEW- Not later than January 30, 1999, the Comptroller General shall review the report and plan submitted under subsection (a) and submit to Congress a briefing evaluating the methodology to be used under the plan to simulate the year 2000 and describing the potential information that will be collected as a result of implementation of the plan, the adequacy of the planned tests, and the impact that the plan will have on military readiness.

    (g) DEFINITIONS- For the purposes of this section:

      (1) The term ‘information technology’ has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

      (2) The term ‘national security system’ has the meaning given that term in section 5142 of such Act (40 U.S.C. 1452).

      (3) The term ‘mission critical system’ means an information technology or national security system that is designated as mission critical in the May 1998 Department of Defense quarterly report on the status of year 2000 compliance.

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

    (a) REPORT REQUIRED- Not later than March 31, 1999, the Secretary of Defense and the Director of Central Intelligence shall jointly submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the plans of the Department of Defense and the intelligence community for ensuring the continuity of performance of essential operations that are at risk of failure because of information technology and national security systems that are not year 2000 compliant.

    (b) CONTENT- The report shall contain, at a minimum, the following:

      (1) A prioritization of mission critical systems to ensure that the most critical systems have the highest priority for efforts to reprogram information technology and national security systems to be year 2000 compliant.

      (2) A discussion of the private and other public information and support systems relied on by the national security community, including the intelligence community, and the efforts under way to ensure that those systems are year 2000 compliant.

      (3) The efforts under way to repair the underlying operating systems and infrastructure.

      (4) The plans for comprehensive testing of Department of Defense systems, including simulated operational tests in mission areas.

      (5) A comprehensive contingency plan, for the entire national security community, which provides for resolving emergencies resulting from a system that is not year 2000 compliant and includes provision for the creation of crisis action teams for use in resolving such emergencies.

      (6) A discussion of the efforts undertaken to ensure the continued reliability of service on the systems used by the President and other leaders of the United States for communicating with the leaders of other nations.

      (7) A discussion of the vulnerability of allied armed forces to the failure of systems that are not, or have critical components that are not, year 2000 compliant, together with an assessment of the potential problems for interoperability among the Armed Forces of the United States and allied armed forces because of the potential for failure of such systems.

      (8) An estimate of the total cost of making information technology and national security systems of the Department of Defense and the intelligence community year 2000 compliant.

      (9) The countries that have critical computer-based systems any disruption of which, due to not being year 2000 compliant, would cause a significant potential national security risk to the United States.

      (10) A discussion of the cooperative arrangements between the United States and other nations to assist those nations in identifying and correcting (to the extent necessary to meet national security interests of the United States) any problems in their communications and strategic systems, or other systems identified by the Secretary of Defense, that make the systems not year 2000 compliant.

      (11) A discussion of the threat posed to the national security interests of the United States from any potential failure of strategic systems of foreign countries that are not year 2000 compliant.

    (c) INTERNATIONAL COOPERATIVE ARRANGEMENTS- The Secretary of Defense, with the concurrence of the Secretary of State, may enter into a cooperative arrangement with a representative of any foreign government to provide for the United States to assist the foreign government in identifying and correcting (to the extent necessary to meet national security interests of the United States) any problems in communications, strategic, or other systems of that foreign government that render the systems not year 2000 compliant.

    (d) DEFINITIONS- In this section:

      (1) The term ‘year 2000 compliant’, with respect to an information technology or national security system of the United States or a computer-based system of a foreign government, means that the system correctly recognizes dates in years after 1999 as being dates after 1999 for the purposes of system functions for which the correct date is relevant to the performance of the functions, consistent with certification level 1a, 1b, or 2 (as prescribed in the April 1997 publication of the Department of Defense entitled ‘Year 2000 Management Plan’).

      (2) The term ‘information technology’ has the meaning given that term by section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

      (3) The term ‘national security system’ has the meaning given that term by section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).

Subtitle E--Defense Infrastructure Support Improvement

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

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

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

    (a) IN GENERAL- Section 2461 of title 10, United States Code, is amended--

      (1) by redesignating subsections (c) and (g) as subsections (g) and (h), respectively, and transferring subsection (g), as so redesignated, to appear after subsection (f); and

      (2) by striking out subsections (a) and (b) and inserting in lieu thereof the following new subsections:

    ‘(a) REPORTING AND ANALYSIS REQUIREMENTS AS PRECONDITION TO CHANGE IN PERFORMANCE- A commercial or industrial type function of the Department of Defense that, as of October 1, 1980, was being performed by Department of Defense civilian employees may not be changed to performance by the private sector until the Secretary of Defense fully complies with the reporting and analysis requirements specified in subsections (b) and (c).

    ‘(b) NOTIFICATION AND ELEMENTS OF ANALYSIS- (1) Before commencing to analyze a commercial or industrial type function described in subsection (a) for possible change to performance by the private sector, the Secretary of Defense shall submit to Congress a report containing the following:

      ‘(A) The function to be analyzed for possible change.

      ‘(B) The location at which the function is performed by Department of Defense civilian employees.

      ‘(C) The number of civilian employee positions potentially affected.

      ‘(D) The anticipated length and cost of the analysis.

      ‘(E) A certification that a proposed performance of the commercial or industrial type function by persons who are not civilian employees of the Department of Defense is not a result of a decision by an official of a military department or Defense Agency to impose predetermined constraints or limitations on such employees in terms of man years, end strengths, full-time equivalent positions, or maximum number of employees.

    ‘(2) The duty to prepare a report under paragraph (1) may be delegated. A report prepared below the major command or claimant level of a military department, or below the equivalent level in a Defense Agency, pursuant to any such delegation shall be reviewed at the major command, claimant level, or equivalent level, as the case may be, before submission to Congress.

    ‘(3) An analysis of a commercial or industrial type function for possible change to performance by the private sector shall include the following:

      ‘(A) An examination of the cost of performance of the function by Department of Defense civilian employees and by one or more private contractors to demonstrate whether change to performance by the private sector will result in savings to the Government over the life of the contract, including in the examination the following:

        ‘(i) The cost to the Government, estimated by the Secretary of Defense (based on offers received), for performance of the function by the private sector.

        ‘(ii) The estimated cost to the Government of Department of Defense civilian employees performing the function.

        ‘(iii) In addition to the costs referred to in clause (i), an estimate of all other costs and expenditures that the Government would incur because of the award of such a contract.

      ‘(B) An examination of the potential economic effect of performance of the function by the private sector on the following:

        ‘(i) Employees of the Department of Defense who would be affected by such a change in performance.

        ‘(ii) The local community and the Government, if more than 75 employees of the Department of Defense perform the function.

      ‘(C) An examination of the effect of performance of the function by the private sector on the military mission associated with the performance of the function.

    ‘(4)(A) A representative individual or entity at a facility where a commercial or industrial type function is analyzed for possible change in performance may submit to the Secretary of Defense an objection to the analysis on the grounds that the report required by paragraph (1) has not been submitted or that the certification required by paragraph (1)(E) is not included in the report submitted as a condition for the analysis. The objection shall be in writing and shall be submitted within 90 days after the following date:

      ‘(i) In the case of a failure to submit the report when required, the date on which the representative individual or an official of the representative entity authorized to pose the objection first knew or should have known of that failure.

      ‘(ii) In the case of a failure to include the certification in a submitted report, the date on which the report was submitted to Congress.

    ‘(B) If the Secretary determines that the report required by paragraph (1) was not submitted or that the required certification was not included in the submitted report, the commercial or industrial type function covered by the analysis to which objected may not be the subject of a solicitation of offers for, or award of, a contract until, respectively, the report is submitted or a report containing the certification in full compliance with the certification requirement is submitted.

    ‘(c) NOTIFICATION OF DECISION- (1) If, as a result of the completion of the examinations under subsection (b)(3), a decision is made to change the commercial or industrial type function that was the subject of the analysis to performance by the private sector, the Secretary of Defense shall submit to Congress a report describing that decision. The report shall contain the following:

      ‘(A) An indication that the examinations required under subsection (b)(3) have been completed.

      ‘(B) The Secretary’s certification that the Government calculation of the cost of performance of the function by Department of Defense civilian employees is based on an estimate of the most cost effective manner for performance of the function by Department of Defense civilian employees.

      ‘(C) The Secretary’s certification that the examination required by subsection (b)(3)(A) as part of the analysis demonstrates that the performance of the function by the private sector will result in savings to the Government over the life of the contract.

      ‘(D) The Secretary’s certification that the entire analysis is available for examination.

      ‘(E) A schedule for completing the change to performance of the function by the private sector.

    ‘(2) The change of the function to contractor performance may not begin until after the submission of the report required by this subsection.’.

    (b) DEFINITION OF SMALL FUNCTION FOR WAIVER PURPOSES- Subsection (d) of section 2461 of title 10, United States Code, is amended by striking out ‘20’ and inserting in lieu thereof ‘50’.

    (c) CONFORMING AMENDMENTS- (1) Subsections (d) and (e) of section 2461 of title 10, United States Code, are amended by inserting ‘and subsection (g)’ after ‘Subsections (a) through (c)’.

    (2) Subsections (e)(2) and (f)(1) of such section are amended by striking out ‘converted’ and inserting in lieu thereof ‘changed’.

    (3) Subsection (f)(2) of such section is amended by striking out ‘conversion’ and inserting in lieu thereof ‘change’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, but the amendments shall not apply with respect to a conversion of a function of the Department of Defense to performance by a private contractor concerning which the Secretary of Defense provided to Congress, before the date of the enactment of this Act, a notification under paragraph (1) of section 2461(a) of title 10, United States Code, as in effect on the day before the date of the enactment of this Act.

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

    (a) REQUIREMENT- Section 2464 of title 10, United States Code, is amended by adding at the end the following:

    ‘(c) NOTIFICATION OF DETERMINATIONS REGARDING CERTAIN COMMERCIAL ITEMS- The first time that a weapon system or other item of military equipment described in subsection (a)(3) is determined to be a commercial item for the purposes of the exception contained in that subsection, the Secretary of Defense shall submit to Congress a notification of the determination, together with the justification for the determination. The justification for the determination shall include, at a minimum, the following:

      ‘(1) The estimated percentage of commonality of parts of the version of the item that is sold or leased in the commercial marketplace and the Government’s version of the item.

      ‘(2) The value of any unique support and test equipment and tools that are necessary to support the military requirements if the item were maintained by the Government.

      ‘(3) A comparison of the estimated life cycle logistics support costs that would be incurred by the Government if the item were maintained by the private sector with the estimated life cycle logistics support costs that would be incurred by the Government if the item were maintained by the Government.’.

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

SEC. 344. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF AUTOMATED IDENTIFICATION TECHNOLOGY.

    (a) DEFINITIONS- In this section:

      (1) The term ‘automated identification technology program’ means a program in the Department of Defense, including any pilot program, employing one or more of the following technologies:

        (A) Magnetic stripe.

        (B) Bar codes, both linear and two-dimensional (including matrix symbologies).

        (C) Smart Card.

        (D) Optical memory.

        (E) Personal computer memory card international association carriers.

        (F) Any other established or emerging automated identification technology, including biometrics and radio frequency identification.

      (2) The term ‘Smart Card’ means a credit card size device that contains one or more integrated circuits.

    (b) ESTABLISHMENT OF AUTOMATED IDENTIFICATION TECHNOLOGY OFFICE- (1) The Secretary of Defense shall establish an Automated Identification Technology Office within the Department of Defense that shall be responsible for--

      (A) overseeing the development and implementation of all automated identification technology programs in the Department; and

      (B) coordinating automated identification technology programs with the Joint Staff, the Secretaries of the military departments, and the directors of the Defense Agencies.

    (2) After the date of the enactment of this Act, funds appropriated for the Department of Defense may not be obligated for an automated identification technology program unless the program has been reviewed and approved by the Automated Identification Technology Office. Pending the establishment of the Automated Identification Technology Office, the review and approval of a program by the Smart Card Technology Office of the Defense Human Resources Field Activity of the Department of Defense shall be sufficient to satisfy the requirements of this paragraph even if the approval was given before the date of the enactment of this Act.

    (3) As part of its oversight responsibilities, the Automated Identification Technology Office shall establish standards designed--

      (A) to ensure the compatibility and interoperability of automated identification technology programs in the Department of Defense; and

      (B) to identify and terminate redundant, infeasible, or uneconomical automated identification technology programs.

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

    (2) Not later than June 30, 1999, the Secretary of the Navy shall equip with Smart Card technology at least one carrier battle group, one carrier air wing, and one amphibious readiness group (including the Marine Corps units embarked on the vessels of such battle and readiness groups) in each of the United States Atlantic Command and the United States Pacific Command.

    (3) None of the funds appropriated pursuant to any authorization of appropriations in this Act may be expended after June 30, 1999, for the procurement of the Joint Uniformed Services Identification card for members of the Navy or the Marine Corps or for the issuance of such card to such members, until the Secretary of the Navy certifies in writing to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives that the Secretary has completed the issuance of Smart Cards in accordance with paragraph (2).

    (d) DEFENSE-WIDE PLAN- Not later than March 31, 1999, the Secretary of Defense shall submit to the congressional defense committees a plan for the use of Smart Card technology by each military department. The Secretary shall include in the plan an estimate of the costs of the plan, the savings to be derived from carrying out the plan, and a description of the ways in which the Department of Defense will review and revise business practices to take advantage of Smart Card technology.

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

    (a) DEFINITIONS- In this section:

      (1) The term ‘contractor-operated civil engineering supply store’ means a Government-owned facility that, as of the date of the enactment of this Act, is operated by a contractor under the contractor-operated civil engineering supply store program of the Department of the Air Force (known as the ‘COCESS program’) for the purpose of--

        (A) maintaining inventories of civil engineering supplies on behalf of a military department; and

        (B) furnishing such supplies to the department as needed.

      (2) The term ‘civil engineering supplies’ means parts and supplies needed for the repair and maintenance of military installations.

    (b) FINDINGS- Congress finds the following:

      (1) In 1970, the Strategic Air Command of the Air Force began to use contractor-operated civil engineering supply stores to improve the efficiency and effectiveness of materials management and relieve the Air Force from having to maintain large inventories of civil engineering supplies.

      (2) Contractor-operated civil engineering supply stores are designed to support the civil engineering and public works efforts of the Armed Forces through the provision of quality civil engineering supplies at competitive prices and within a reasonable period of time.

      (3) Through the use of a contractor-operated civil engineering supply store, a guaranteed inventory level of civil engineering supplies is maintained at a military installation, which ensures that urgently needed civil engineering supplies are available on site.

      (4) The contractor operating the contractor-operated civil engineering supply store is an independent business organization whose customer is a military department and the Armed Forces and who is subject to all the rules of private business and the regulations of the Government.

      (5) The use of contractor-operated civil engineering supply stores ensures the best price and best buy for the Government.

      (6) Ninety-five percent of the cost savings realized through the use of contractor-operated civil engineering supply stores is due to savings in the cost of actually procuring supplies.

      (7) In the past 30 years, private contractors have never lost a cost comparison conducted pursuant to the criteria set forth in Office of Management and Budget Circular A-76 for the provision of civil engineering supplies to the Government.

    (c) CONDITIONS ON MULTI-FUNCTION CONTRACTS- A civil engineering supplies function that is performed, as of the date of the enactment of this Act, by a contractor-operated civil engineering supply store may not be combined with another supply function or any service function, including any base operating support function, for purposes of competition or contracting, until 60 days after the date on which the Secretary of Defense submits to Congress a report--

      (1) notifying Congress of the proposed combined competition or contract; and

      (2) explaining why a combined competition or contract is the best method by which to achieve cost savings and efficiencies to the Government.

    (d) GAO REVIEWS- Not later than 50 days after the date on which the Secretary of Defense submits a report to Congress under subsection (c), the Comptroller General shall review the report and submit to Congress a briefing regarding whether the cost savings and efficiencies identified in the report are achievable.

    (e) RELATIONSHIP TO OTHER LAWS- If a civil engineering supplies function covered by subsection (c) is proposed for combination with a supply or service function that is subject to the study and reporting requirements of section 2461 of title 10, United States Code, the Secretary of Defense may include the report required under subsection (c) as part of the report under such section.

SEC. 346. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED UNDER PRIME VENDOR CONTRACTS FOR DEPOT-LEVEL MAINTENANCE AND REPAIR.

    (a) CONDITIONS ON EXPANDED USE- The Secretary of Defense or the Secretary of a military department, as the case may be, may not enter into a prime vendor contract for depot-level maintenance and repair of a weapon system or other military equipment described in section 2464(a)(3) of title 10, United States Code, before the end of the 30-day period beginning on the date on which the Secretary submits to Congress a report, specific to the proposed contract, that--

      (1) describes the competitive procedures to be used to award the prime vendor contract; and

      (2) contains an analysis of costs and benefits that demonstrates that use of the prime vendor contract will result in savings to the Government over the life of the contract.

    (b) DEFINITIONS- In this section:

      (1) The term ‘prime vendor contract’ means an innovative contract that gives a defense contractor the responsibility to manage, store, and distribute inventory, manage and provide services, or manage and perform research, on behalf of the Department of Defense on a frequent, regular basis, for users within the Department on request. The term includes contracts commonly referred to as prime vendor support contracts, flexible sustainment contracts, and direct vendor delivery contracts.

      (2) The term ‘depot-level maintenance and repair’ has the meaning given such term in section 2460 of title 10, United States Code.

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

SEC. 347. BEST COMMERCIAL INVENTORY PRACTICES FOR MANAGEMENT OF SECONDARY SUPPLY ITEMS.

    (a) DEVELOPMENT AND SUBMISSION OF SCHEDULE- Not later than 180 days after the date of the enactment of this Act, the Secretary of each military department shall submit to Congress a schedule for implementing within the military department, for secondary supply items managed by that military department, inventory practices identified by the Secretary as being the best commercial inventory practices for the acquisition and distribution of such supply items consistent with military requirements. The schedule shall provide for the implementation of such practices to be completed not later than five years after the date of the enactment of this Act.

    (b) DEFINITION- For purposes of this section, the term ‘best commercial inventory practice’ includes cellular repair processes, use of third-party logistics providers, and any other practice that the Secretary of the military department determines will enable the military department to reduce inventory levels while improving the responsiveness of the supply system to user needs.

    (c) GAO REPORTS ON MILITARY DEPARTMENT AND DEFENSE LOGISTICS AGENCY SCHEDULES- (1) Not later than 240 days after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report evaluating the extent to which the Secretary of each military department has complied with the requirements of this section.

    (2) Not later than 18 months after the date on which the Director of the Defense Logistics Agency submits to Congress a schedule for implementing best commercial inventory practices under section 395 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1718; 10 U.S.C. 2458 note), the Comptroller General shall submit to Congress an evaluation of the extent to which best commercial inventory practices are being implemented in the Defense Logistics Agency in accordance with that schedule.

SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

    Not later than March 31, 1999, the Comptroller General shall submit to the congressional defense committees a report concerning--

      (1) the effect that the quadrennial defense review’s proposed personnel reductions in the Army Materiel Command will have on workload and readiness if implemented; and

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

SEC. 349. INVENTORY MANAGEMENT OF IN-TRANSIT ITEMS.

    (a) REQUIREMENT FOR PLAN- Not later than March 1, 1999, the Secretary of Defense shall submit to Congress a comprehensive plan to ensure visibility over all in-transit end items and secondary items.

    (b) END ITEMS- The plan required by subsection (a) shall address the specific mechanisms to be used to enable the Department of Defense to identify at any time the quantity and location of all end items.

    (c) SECONDARY ITEMS- The plan required by subsection (a) shall address the following problems with Department of Defense management of inventories of in-transit secondary items:

      (1) The vulnerability of in-transit secondary items to loss through fraud, waste, and abuse.

      (2) Loss of oversight of in-transit secondary items, including any loss of oversight when items are being transported by commercial carriers.

      (3) Loss of accountability for in-transit secondary items due to either a delay of delivery of the items or a lack of notification of a delivery of the items.

    (d) CONTENT OF PLAN- The plan shall include for subsection (b) and for each of the problems described in subsection (c) the following information:

      (1) The actions to be taken by the Department.

      (2) Statements of objectives.

      (3) Performance measures and schedules.

      (4) An identification of any resources necessary for implementing the required actions, together with an estimate of the annual costs.

    (e) GAO REVIEWS- (1) Not later than 60 days after the date on which the Secretary of Defense submits the plan to Congress, the Comptroller General shall review the plan and submit to Congress any comments that the Comptroller General considers appropriate regarding the plan.

    (2) The Comptroller General shall monitor any implementation of the plan and, not later than 1 year after the date referred to in paragraph (1), submit to Congress an assessment of the extent to which the plan has been implemented.

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

    (a) REVIEW REQUIRED- The Secretary of Defense shall provide for a review of the functions of the Defense Automated Printing Service in accordance with this section and shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives the matters required under subsection (f) not later than March 31, 1999.

    (b) PERFORMANCE BY INDEPENDENT ENTITY- The Secretary of Defense shall select the General Accounting Office, an experienced entity in the private sector, or any other entity outside the Department of Defense to perform the review under this section. The Comptroller General shall perform the review if the Secretary selects the Comptroller General to do so.

    (c) CONSULTATION- Regardless of the entity selected by the Secretary under subsection (b) to perform the review, the entity shall perform the review in consultation with persons in the private sector who have expertise and experience in performing in the private sector functions similar to the functions performed by the Defense Automated Printing Service. If such a person obtains any privileged information (as defined by the Secretary of Defense) as a result of participating in the review, the person may not receive a contract, either through the Department of Defense or the Government Printing Office, to provide services for the Department of Defense similar to the functions performed by the Defense Automated Printing Service for a one-year period beginning on the date the report is submitted to the Secretary of Defense under subsection (e).

    (d) ELEMENTS OF REVIEW- In performing the review under this section, the entity selected under subsection (b) shall specifically address the following:

      (1) The functions performed by the Defense Automated Printing Service.

      (2) The functions of the Defense Automated Printing Service that are inherently national security functions and, as such, need to be performed within the Department of Defense.

      (3) The functions of the Defense Automated Printing Service that are appropriate for transfer to another appropriate entity to perform, including a private sector entity.

      (4) The appropriate management structure of the Defense Automated Printing Service, the effectiveness of the current structure of the Defense Automated Printing Service in supporting current and future customer requirements, and any plans to address any deficiencies in supporting such requirements.

      (5) The current and future requirements of customers of the Defense Automated Printing Service.

      (6) The best business practices that are used by the Defense Automated Printing Service and other best business practices that could be used by the Defense Automated Printing Service.

      (7) Options for maximizing the Defense Automated Printing Service structure and services to provide the most cost effective service to its customers.

    (e) REPORT ON RESULTS OF REVIEW- The entity performing the review under this section shall submit to the Secretary of Defense a report that sets forth the results of the review. In addition to specifically addressing the matters specified in subsection (d), the report shall also include the following:

      (1) A list of all sites where functions of the Defense Automated Printing Service are performed by the Defense Automated Printing Service.

      (2) The total number of the personnel employed by the Defense Automated Printing Service and the locations where the personnel perform the duties as employees.

      (3) For each site identified under paragraph (1), an assessment of each type of equipment at the site.

      (4) The types and explanation of the networking and technology integration linking all of the sites referred to in paragraph (1).

      (5) For each function of the Defense Automated Printing Service determined to be an inherently national security function under subsection (d)(2), a detailed justification for the determination.

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

    (f) REVIEW AND COMMENTS OF SECRETARY OF DEFENSE- (1) After reviewing the report submitted under subsection (e), the Secretary of Defense shall submit the report to Congress. The Secretary shall include with the report the following:

      (1) The Secretary’s comments and recommendations regarding the report.

      (2) A plan to transfer to another appropriate entity, or contract with another appropriate entity for, the performance of the functions of the Defense Automated Printing Service that--

        (A) are not identified in the review as being inherently national security functions; and

        (B) the Secretary believes should be transferred or contracted for performance outside the Department of Defense in accordance with law.

      (3) Any recommended legislation and any administrative action that is necessary for transferring or contracting for the performance of the functions.

    (g) EXTENSION OF REQUIREMENT FOR COMPETITIVE PROCUREMENT OF SERVICES- Section 351(a) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), as amended by section 351(a) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2490) and section 387(a)(1) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1713), is further amended by striking out ‘1998’ and inserting in lieu thereof ‘1999’.

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

    (a) PLAN REQUIRED- Not later than March 1, 1999, the Secretary of the Air Force shall submit to Congress a plan for the establishment of the core logistics capabilities for the C-17 aircraft consistent with the requirements of section 2464 of title 10, United States Code.

    (b) EFFECT ON EXISTING CONTRACT- After March 1, 1999, the Secretary of the Air Force may not extend the Interim Contract for the C-17 Flexible Sustainment Program before the end of the 60-day period beginning on the date on which the plan required by subsection (a) is received by Congress.

    (c) COMPTROLLER GENERAL REVIEW- During the period specified in subsection (b), the Comptroller General shall review the plan required under subsection (a) and submit to Congress a report evaluating the merits of the plan.

Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

    (a) MANAGEMENT AND FUNDING RESPONSIBILITIES- Section 192 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(d) SPECIAL RULE FOR DEFENSE COMMISSARY AGENCY- Notwithstanding the results of any periodic review under subsection (c) with regard to the Defense Commissary Agency, the Secretary of Defense may not transfer to the Secretary of a military department the responsibility to manage and fund the provision of services and supplies provided by the Defense Commissary Agency unless the transfer of the management and funding responsibility is specifically authorized by a law enacted after the date of the enactment of this subsection.’.

    (b) GOVERNING BOARD- Section 2482 of such title is amended by adding at the end the following new subsection:

    ‘(c) GOVERNING BOARD- (1) Notwithstanding section 192(d) of this title, the Secretary of Defense shall establish a governing board for the commissary system to provide advice to the Secretary regarding the prudent operation of the commissary system and to assist in the overall supervision of the Defense Commissary Agency. The Secretary may authorize the board to have such supervisory authority as the Secretary considers appropriate to permit the board to carry out its responsibilities.

    ‘(2) The Secretary of Defense shall determine the membership of the governing board, which shall include, at a minimum, appropriate representatives from each military department.

    ‘(3) The governing board shall be accountable only to the Secretary of Defense and to the civilian officer of the Department of Defense who is assigned the responsibility for the overall supervision of the Defense Commissary Agency pursuant to section 192(a) of this title. The Director of the Defense Commissary Agency shall be accountable to and report to the board.’.

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

    (a) DAYS OF ELIGIBILITY FOR READY RESERVE MEMBERS WITH 50 CREDITABLE POINTS- Section 1063 of title 10, United States Code, is amended--

      (1) by striking out subsection (b); and

      (2) in subsection (a)--

        (A) by striking out ‘(1)’;

        (B) by striking out ‘12 days of eligibility’ and inserting in lieu thereof ‘24 days of eligibility’; and

        (C) by striking out ‘(2) Paragraph (1)’ and inserting in lieu thereof ‘(b) EFFECT OF COMPENSATION OR TYPE OF DUTY- Subsection (a)’.

    (b) DAYS OF ELIGIBILITY FOR RESERVE RETIREES UNDER AGE 60- Section 1064 of such title is amended by striking out ‘for 12 days each calendar year’ and inserting in lieu thereof ‘for 24 days each calendar year’.

    (c) ELIGIBILITY OF MEMBERS OF NATIONAL GUARD SERVING IN FEDERALLY DECLARED DISASTER- Chapter 54 of such title is amended by inserting after section 1063 the following new section:

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

    ‘(a) ELIGIBILITY OF MEMBERS- A member of the National Guard who, although not in Federal service, is called or ordered to duty in response to a federally declared disaster shall be permitted to use commissary stores and MWR retail facilities during the period of such duty on the same basis as members of the armed forces on active duty.

    ‘(b) ELIGIBILITY OF DEPENDENTS- A dependent of a member of the National Guard who is permitted under subsection (a) to use commissary stores and MWR retail facilities shall be permitted to use such stores and facilities, during the same period as the member, on the same basis as dependents of members of the armed forces on active duty.

    ‘(c) DEFINITIONS- In this section:

      ‘(1) FEDERALLY DECLARED DISASTER- The term ‘federally declared disaster’ means a disaster or other situation for which a Presidential declaration of major disaster is issued under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170).

      ‘(2) MWR RETAIL FACILITIES- The term ‘MWR retail facilities’ has the meaning given that term in section 1065(e) of this title.’.

    (d) SECTION HEADINGS- (1) The heading of section 1063 of such title is amended to read as follows:

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

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

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

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

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

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

      ‘1064. Use of commissary stores: persons qualified for retired pay under chapter 1223 but under age 60.’.

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

    (a) LIMITATION- Section 2482(b)(1) of title 10, United States Code, is amended by adding at the end the following: ‘However, the Defense Commissary Agency may not pay for any such service provided by the United States Transportation Command any amount that exceeds the price at which the service could be procured through full and open competition, as such term is defined in section 4(6) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(6)).’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with respect to services provided or obtained on or after the date of the enactment of this Act.

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

    Section 2486 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) COLLECTION OF DISHONORED CHECKS- (1) The Secretary of Defense may impose a charge for the collection of a check accepted at a commissary store that is not honored by the financial institution on which the check is drawn. The imposition and amounts of charges shall be consistent with practices of commercial grocery stores regarding dishonored checks.

    ‘(2)(A) The following persons are liable to the United States for the amount of a check referred to in paragraph (1) that is returned unpaid to the United States, together with any charge imposed under that paragraph:

      ‘(i) The person who presented the check.

      ‘(ii) Any person whose status and relationship to the person who presented the check provide the basis for that person’s eligibility to make purchases at a commissary store.

    ‘(B) Any amount for which a person is liable under subparagraph (A) may be collected by deducting and withholding such amount from any amounts payable to that person by the United States.

    ‘(3) Amounts collected as charges imposed under paragraph (1) shall be credited to the commissary trust revolving fund.

    ‘(4) Appropriated funds may be used to pay any costs incurred in the collection of checks and charges referred to in paragraph (1). An appropriation account charged a cost under the preceding sentence shall be reimbursed the amount of that cost out of funds in the commissary trust revolving fund.

    ‘(5) In this subsection, the term ‘commissary trust revolving fund’ means the trust revolving fund maintained by the Department of Defense for surcharge collections and proceeds of sales of commissary stores.’.

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

    (a) AUTHORITY TO IMPOSE RESTRICTIONS; LIMITATIONS ON AUTHORITY- Chapter 147 of title 10, United States Code, is amended by adding at the end the following new section:

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

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

    ‘(2) In establishing a quantity or other restriction, the Secretary--

      ‘(A) may not discriminate among the various categories of eligible patrons of the commissary and exchange system; and

      ‘(B) shall ensure that the restriction is consistent with the purpose of the overseas commissary and exchange system to provide reasonable access for eligible patrons to purchase merchandise items made in the United States.

    ‘(b) CONTROLLED ITEM LISTS- For each location outside the United States that is served by the commissary system or the exchange system, the Secretary of Defense may maintain a list of controlled merchandise items, except that, after the date of the enactment of this section, the Secretary may not change the list to add a merchandise item unless, before making the change, the Secretary submits to Congress a notice of the proposed addition and the reasons for the addition of the item.

    ‘(c) ANNUAL REPORT- The Secretary of Defense shall submit to Congress an annual report describing the host nation laws and the treaty obligations of the United States, and the conditions within host nations, that necessitate the use of quantity or other restrictions on purchases in commissary and exchange stores located outside the United States.’.

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

      ‘2492. Overseas commissary and exchange stores: access and purchase restrictions.’.

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

    (a) REPEAL- Section 9623 of title 10, United States Code, is repealed.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 939 of such title is amended by striking out the item relating to section 9623.

SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS.

    (a) DEFENSE RETAIL SYSTEMS DEFINED- For purposes of this section, the term ‘defense retail systems’ means the defense commissary system and exchange stores and other revenue-generating facilities operated by nonappropriated fund activities of the Department of Defense for the morale, welfare, and recreation of members of the Armed Forces.

    (b) PROHIBITION- The operation and administration of the defense retail systems may not be consolidated or otherwise merged unless the consolidation or merger is specifically authorized by a law enacted after the date of the enactment of this Act.

    (c) EFFECT ON EXISTING STUDY- Nothing in this section shall be construed to prohibit the study of defense retail systems, known as the ‘Joint Exchange Due Diligence Study’, which is underway on the date of the enactment of this Act pursuant to a contract awarded by the Department of the Navy on April 21, 1998, except that any recommendation contained in the completed study regarding the operation or administration of the defense retail systems may not be implemented unless implementation of the recommendation is specifically authorized by a law enacted after the date of the enactment of this Act.

SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

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

    (b) REPORT- Upon the initiation of telecommunication service for the Defense Commissary Agency under the FTS 2000/2001 contract, the Secretary of Defense shall submit to Congress a notification that the service has been initiated.

    (c) DEFINITION- In this section, the term ‘FTS 2000/2001 contract’ means the contract for the provision of telecommunication services for the Federal Government that was entered into by the Defense Information Technology Contract Organization.

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

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

    (b) SURVEY LOCATION- The survey shall be conducted at not less than three military installations in the United States of each of the Armed Forces (other than the Coast Guard).

    (c) REPORT ON RESULTS- The survey shall be completed, and the results submitted to the Secretary of Defense, the Committee on Armed Services of the Senate, and the Committee on National Security of the House of Representatives, not later than February 28, 1999.

Subtitle G--Other Matters

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

    (a) DEPENDENTS OF MEMBERS RESIDING IN CERTAIN AREAS- Subsection (a) of section 2164 of title 10, United States Code, is amended--

      (1) by designating the first sentence as paragraph (1);

      (2) by designating the second sentence as paragraph (2); and

      (3) by adding at the end of paragraph (2) (as so designated) the following new sentence: ‘If a member of the armed forces is assigned to a remote location or is assigned to an unaccompanied tour of duty, a dependent of the member who resides, on or off a military installation, in a territory, commonwealth, or possession of the United States, as authorized by the member’s orders, may be enrolled in an educational program provided by the Secretary under this subsection.’.

    (b) WAIVER OF FIVE-YEAR ATTENDANCE LIMITATION- Subsection (c)(2) of such section is amended by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraph:

    ‘(B) At the discretion of the Secretary, a dependent referred to in subparagraph (A) may be enrolled in the program for more than five consecutive school years if the dependent is otherwise qualified for enrollment, space is available in the program, and the Secretary will be reimbursed for the educational services provided. Any such extension shall cover only one school year at a time.’.

    (c) CUSTOMS SERVICE EMPLOYEE DEPENDENTS IN PUERTO RICO- (1) Subsection (c)(1) of such section is amended--

      (A) by inserting ‘(A)’ after ‘(1)’; and

      (B) by adding at the end the following new subparagraph:

    ‘(B) A dependent of a United States Customs Service employee who resides in Puerto Rico, but not on a military installation, may enroll in an educational program provided by the Secretary pursuant to subsection (a) in Puerto Rico in accordance with the same rules as apply to a dependent of a Federal employee residing in permanent living quarters on a military installation.’.

    (2) Subsection (c)(2) of such section is further amended by adding at the end the following new subparagraph:

    ‘(D) Subparagraph (A) shall not apply to a dependent covered by paragraph (1)(B). No requirement under this paragraph for reimbursement for educational services provided for the dependent shall apply with respect to the dependent, except that the Secretary may require the United States Customs Service to reimburse the Secretary for the cost of the educational services provided for the dependent.’.

    (3) The amendments made by this subsection shall apply with respect to academic years beginning on or after the date of the enactment of this Act.

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

    (a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR FISCAL YEAR 1999- Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities--

      (1) $30,000,000 shall be available only for the purpose of providing educational agencies assistance (as defined in subsection (d)(1)) to local educational agencies; and

      (2) $5,000,000 shall be available only for the purpose of making educational agencies payments (as defined in subsection (d)(2)) to local educational agencies.

    (b) NOTIFICATION- Not later than June 30, 1999, the Secretary of Defense shall--

      (1) notify each local educational agency that is eligible for educational agencies assistance for fiscal year 1999 of that agency’s eligibility for such assistance and the amount of such assistance for which that agency is eligible; and

      (2) notify each local educational agency that is eligible for an educational agencies payment for fiscal year 1999 of that agency’s eligibility for such payment and the amount of the payment for which that agency is eligible.

    (c) DISBURSEMENT OF FUNDS- The Secretary of Defense shall disburse funds made available under paragraphs (1) and (2) of subsection (a) not later than 30 days after the date on which notification to the eligible local educational agencies is provided pursuant to subsection (b).

    (d) DEFINITIONS- In this section:

      (1) The term ‘educational agencies assistance’ means assistance authorized under section 386(b) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note).

      (2) The term ‘educational agencies payments’ means payments authorized under section 386(d) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note).

      (3) The term ‘local educational agency’ has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

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

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

    ‘(a) REQUIRED READINESS REPORTING SYSTEM- The Secretary of Defense shall establish a comprehensive readiness reporting system for the Department of Defense. The readiness reporting system shall measure in an objective, accurate, and timely manner the capability of the armed forces to carry out--

      ‘(1) the National Security Strategy prescribed by the President in the most recent annual national security strategy report under section 108 of the National Security Act of 1947 (50 U.S.C. 404a);

      ‘(2) the defense planning guidance provided by the Secretary of Defense pursuant to section 113(g) of this title; and

      ‘(3) the National Military Strategy prescribed by the Chairman of the Joint Chiefs of Staff.

    ‘(b) READINESS REPORTING SYSTEM CHARACTERISTICS- In establishing the readiness reporting system, the Secretary shall ensure--

      ‘(1) that the readiness reporting system is applied uniformly throughout the Department of Defense;

      ‘(2) that information in the readiness reporting system is continually updated, with any change in the overall readiness status of a unit, an element of the training establishment, or an element of defense infrastructure, that is required to be reported as part of the readiness reporting system, being reported within 24 hours of the event necessitating the change in readiness status; and

      ‘(3) that sufficient resources are provided to establish and maintain the system so as to allow reporting of changes in readiness status as required by this section.

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

      ‘(1) Measure, on a monthly basis, the capability of units (both as elements of their respective armed force and as elements of joint forces) to conduct their assigned wartime missions.

      ‘(2) Measure, on a quarterly basis, the capability of training establishments to provide trained and ready forces for wartime missions.

      ‘(3) Measure, on a quarterly basis, the capability of defense installations and facilities and other elements of Department of Defense infrastructure, both in the United States and abroad, to provide appropriate support to forces in the conduct of their wartime missions.

      ‘(4) Measure, on a monthly basis, critical warfighting deficiencies in unit capability.

      ‘(5) Measure, on a quarterly basis, critical warfighting deficiencies in training establishments and defense infrastructure.

      ‘(6) Measure, on a monthly basis, the level of current risk based upon the readiness reporting system relative to the capability of forces to carry out their wartime missions.

    ‘(d) QUARTERLY AND MONTHLY JOINT READINESS REVIEWS- (1) The Chairman of the Joint Chiefs of Staff shall--

      ‘(A) on a quarterly basis, conduct a joint readiness review; and

      ‘(B) on a monthly basis, review any changes that have been reported in readiness since the previous joint readiness review.

    ‘(2) The Chairman shall incorporate into both the joint readiness review required under paragraph (1)(A) and the monthly review required under paragraph (1)(B) the current information derived from the readiness reporting system and shall assess the capability of the armed forces to execute their wartime missions based upon their posture at the time the review is conducted. The Chairman shall submit to the Secretary of Defense the results of each review under paragraph (1), including the deficiencies in readiness identified during that review.

    ‘(e) SUBMISSION TO CONGRESSIONAL COMMITTEES- The Secretary shall each month submit to the Committee on Armed Services and the Committee on Appropriations of the Senate and the Committee on National Security and the Committee on Appropriations of the House of Representatives a report in writing containing the results of the most recent joint readiness review or monthly review conducted under subsection (d), including the current information derived from the readiness reporting system. Each such report shall be submitted in unclassified form and may, as the Secretary determines necessary, also be submitted in classified form.

    ‘(f) REGULATIONS- The Secretary shall prescribe regulations to carry out this section. In those regulations, the Secretary shall prescribe the units that are subject to reporting in the readiness reporting system, what type of equipment is subject to such reporting, and the elements of the training establishment and of defense infrastructure that are subject to such reporting.’.

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

      ‘117. Readiness reporting system: establishment; reporting to congressional committees.’.

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

    (c) IMPLEMENTATION PLAN- Not later than March 1, 1999, the Secretary of Defense shall submit to Congress a report setting forth the Secretary’s plan for implementation of section 117 of title 10, United States Code, as added by subsection (a).

    (d) REPEAL OF QUARTERLY READINESS REPORT REQUIREMENT- (1) Effective January 15, 2000, or the date on which the first report of the Secretary of Defense is submitted under section 117(e) of title 10, United States Code, as added by subsection (a), whichever is later, the Secretary of Defense shall cease to submit reports under section 482 of title 10, United States Code.

    (2) Effective June 1, 2001--

      (A) section 482 of title 10, United States Code, is repealed; and

      (B) the table of sections at the beginning of chapter 23 of such title is amended by striking out the item relating to that section.

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

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

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

    (a) COMPETITIVE SOURCE SELECTION- Section 113(b) of title 32, United States Code, is amended to read as follows:

    ‘(b) COVERED ACTIVITIES- (1) Except as provided in paragraph (2), financial assistance may be provided for the performance of an activity by the Army National Guard under subsection (a) only if--

      ‘(A) the activity is carried out in the performance of a responsibility of the Secretary of the Army under paragraph (6), (10), or (11) of section 3013(b) of title 10; and

      ‘(B) the Army National Guard was selected to perform the activity under competitive procedures that permit all qualified public-sector and private-sector sources to submit offers and be considered for selection to perform the activity on the basis of the offers.

    ‘(2) Paragraph (1)(B) does not apply to an activity that, on the date of the enactment of this subsection, was performed for the Federal Government by employees of the Federal Government or employees of a State.’.

    (b) PROSPECTIVE APPLICABILITY- Subsection (b)(1)(B) of section 113 of title 32, United States Code (as added by subsection (a) of this section), does not apply to--

      (1) financial assistance provided under that section before October 1, 1998; or

      (2) financial assistance for an activity that, before May 9, 1998, the Secretary of the Army identified in writing as being under consideration for supporting with financial assistance under that section.

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

    (a) DEFINITION- In this section, the term ‘current demonstration program’ means the pilot program to improve the movement of household goods of members of the Armed Forces that is identified in the re-engineering pilot solicitation of the Military Traffic Management Command designated as DAMTO1-97-R-3001.

    (b) COMPLETION OF CURRENT DEMONSTRATION PROGRAM- The Secretary of Defense shall complete the current demonstration program to improve the quality of personal property shipments within the Department of Defense not later than October 1, 1999.

    (c) EVALUATIONS OF CURRENT AND ALTERNATIVE DEMONSTRATIONS- (1) Not later than August 31, 1999, the Secretary of Defense shall submit to Congress a report evaluating the following:

      (A) Whether the current demonstration program, as implemented, meets the goals for the current demonstration program previously agreed upon between the Department of Defense and representatives of private sector entities involved in the transportation of household goods for members of the Armed Forces, as such goals are contained in the report of the Comptroller General designated as report ‘NSIAD 97-49’.

      (B) Whether the demonstration program contained in the proposal prepared for the Secretary of Defense by private sector entities involved in the transportation of household goods for members of the Armed Forces as an alternative to the current demonstration program would, if implemented, be likely to meet the goals for the current demonstration program.

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

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

SEC. 377. PILOT PROGRAM FOR ACCEPTANCE AND USE OF LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

    (a) PILOT PROGRAM AUTHORIZED- The Secretary of each military department may carry out a pilot program during fiscal years 1999 and 2000 to demonstrate the use of landing fees as a source of funding for the operation and maintenance of airfields of that department. No fee may be charged under the pilot program for a landing after September 30, 2000.

    (b) UNIFORM LANDING FEES- The Secretary of Defense shall prescribe the landing fees, which shall be uniform for the military departments, that may be imposed under a pilot program carried out under this section.

    (c) USE OF PROCEEDS- Amounts received for a fiscal year in payment of landing fees imposed under the pilot program for use of a military airfield shall be credited to the appropriation that is available for that fiscal year for the operation and maintenance of the military airfield, shall be merged with amounts in the appropriation to which credited, and shall be available for that military airfield for the same period and purposes as the appropriation is available.

    (d) REPORT- Not later than March 31, 2000, the Secretary of Defense shall submit to Congress a report on the pilot programs carried out under this section by the Secretaries of the military departments. The report shall specify the amounts of fees received and retained by each military department under its pilot program as of December 31, 1999.

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

    (a) PLAN REQUIRED- The Secretary of Defense shall develop a strategic plan for guiding and expanding distance learning initiatives within the Department of Defense. The plan shall provide for an expansion of such initiatives over five consecutive fiscal years beginning with fiscal year 2000.

    (b) CONTENT OF PLAN- The strategic plan shall contain, at a minimum, the following:

      (1) A statement of measurable goals and objectives and outcome-related performance indicators (consistent with section 1115 of title 31, United States Code, relating to agency performance plans) for the development and execution of distance learning initiatives throughout the Department of Defense.

      (2) A detailed description of how distance learning initiatives are to be developed and managed within the Department of Defense.

      (3) An assessment of the estimated costs and the benefits associated with developing and maintaining an appropriate infrastructure for distance learning.

      (4) A statement of planned expenditures for the investments necessary to build and maintain that infrastructure.

      (5) A description of the mechanisms that are to be used to supervise the development and coordination of the distance learning initiatives of the Department of Defense.

    (c) RELATIONSHIP TO EXISTING INITIATIVE- In developing the strategic plan, the Secretary may take into account the ongoing collaborative effort among the Department of Defense, other Federal agencies, and private industry that is known as the Advanced Distribution Learning initiative. However, the Secretary shall ensure that the strategic plan is specifically focused on the training and education goals and objectives of the Department of Defense.

    (d) SUBMISSION TO CONGRESS- The Secretary of Defense shall submit the strategic plan to Congress not later than March 1, 1999.

SEC. 379. PUBLIC AVAILABILITY OF OPERATING AGREEMENTS BETWEEN MILITARY INSTALLATIONS AND FINANCIAL INSTITUTIONS.

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

      Sec.401.End strengths for active forces.

      Sec.402.Revision in permanent end strength levels.

      Sec.403.Date for submission of annual manpower requirements report.

      Sec.404.Additional exemption from percentage limitation on number of lieutenant generals and vice admirals.

      Sec.405.Extension of authority for Chairman of the Joint Chiefs of Staff to designate up to 12 general and flag officer positions to be excluded from general and flag officer grade limitations.

      Sec.406.Exception for Chief, National Guard Bureau, from limitation on number of officers above major general.

      Sec.407.Limitation on daily average of personnel on active duty in grades E-8 and E-9.

Subtitle B--Reserve Forces

      Sec.411.End strengths for Selected Reserve.

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

      Sec.413.End strengths for military technicians (dual status).

      Sec.414.Increase in number of members in certain grades authorized to serve on active duty in support of the reserves.

      Sec.415.Consolidation of strength authorizations for active status Naval Reserve flag officers of the Navy Medical Department Staff Corps.

Subtitle C--Authorization of Appropriations

      Sec.421.Authorization of appropriations for military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel as of September 30, 1999, as follows:

      (1) The Army, 480,000.

      (2) The Navy, 372,696.

      (3) The Marine Corps, 172,200.

      (4) The Air Force, 370,882.

SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

    (a) REVISED END STRENGTH FLOORS- Subsection (b) of section 691 of title 10, United States Code, is amended--

      (1) in paragraph (1), by striking out ‘495,000’ and inserting in lieu thereof ‘480,000’;

      (2) in paragraph (2), by striking out ‘390,802’ and inserting in lieu thereof ‘372,696’;

      (3) in paragraph (3), by striking out ‘174,000’ and inserting in lieu thereof ‘172,200’; and

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

    (b) REVISION TO FLEXIBILITY AUTHORITY FOR THE ARMY- Subsection (e) of such section is amended by striking out ‘1 percent or, in the case of the Army, by not more than 1.5 percent,’ and inserting in lieu thereof ‘0.5 percent.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1998.

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

    Section 115a(a) of title 10, United States Code, is amended--

      (1) by striking out ‘, not later than February 15 of each fiscal year,’ in the first sentence; and

      (2) by striking out ‘The report shall be in writing and’ in the second sentence and inserting in lieu thereof ‘The report, which shall be in writing, shall be submitted each year not later than 45 days after the date on which the President submits to Congress the budget for the next fiscal year under section 1105 of title 31. The report’.

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

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

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

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

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

    Section 525(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    ‘(6) An officer while serving as Chief of the National Guard Bureau is in addition to the number that would otherwise be permitted for that officer’s armed force for officers serving on active duty in grades above major general under paragraph (1).’.

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

    (a) FISCAL YEAR BASIS FOR APPLICATION OF LIMITATION- The first sentence of section 517(a) of title 10, United States Code, is amended--

      (1) by striking out ‘a calendar year’ and inserting in lieu thereof ‘a fiscal year’; and

      (2) by striking out ‘January 1 of that year’ and inserting in lieu thereof ‘the first day of that fiscal year’.

    (b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect on October 1, 1999.

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, 1999, as follows:

      (1) The Army National Guard of the United States, 357,223.

      (2) The Army Reserve, 208,003.

      (3) The Naval Reserve, 90,843.

      (4) The Marine Corps Reserve, 40,018.

      (5) The Air National Guard of the United States, 106,992.

      (6) The Air Force Reserve, 74,243.

      (7) The Coast Guard Reserve, 8,000.

    (b) WAIVER AUTHORITY- The Secretary of Defense may vary an end strength authorized by subsection (a) by not more than 2 percent.

    (c) ADJUSTMENTS- The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by--

      (1) the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year; and

      (2) the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.

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

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 1999, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

      (1) The Army National Guard of the United States, 21,986.

      (2) The Army Reserve, 12,807.

      (3) The Naval Reserve, 15,590.

      (4) The Marine Corps Reserve, 2,362.

      (5) The Air National Guard of the United States, 10,931.

      (6) The Air Force Reserve, 992.

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

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

      (1) For the Army Reserve, 5,395.

      (2) For the Army National Guard of the United States, 23,125.

      (3) For the Air Force Reserve, 9,761.

      (4) For the Air National Guard of the United States, 22,408.

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

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

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

    (b) SENIOR ENLISTED MEMBERS- The table in section 12012(a) of such title is amended to read as follows:

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

    (c) EFFECTIVE DATE- The amendments made by this section shall take efffect on October 1, 1998.

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

    Section 12004(c) of title 10, United States Code, is amended--

      (1) in the table in paragraph (1)--

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

‘Medical Department staff corps

--9’;

        and

        (B) by striking out the items relating to the Dental Corps, the Nurse Corps, and the Medical Service Corps; and

      (2) by adding at the end the following:

    ‘(4)(A) For the purposes of paragraph (1), the Medical Department staff corps referred to in the table are as follows:

      ‘(i) The Medical Corps.

      ‘(ii) The Dental Corps.

      ‘(iii) The Nurse Corps.

      ‘(iv) The Medical Service Corps.

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

Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

      Sec.501.Codification of eligibility of retired officers and former officers for consideration by special selection boards.

      Sec.502.Involuntary separation pay denied for officer discharged for failure of selection for promotion requested by the officer.

      Sec.503.Streamlined selective retention process for regular officers.

      Sec.504.Permanent applicability of limitations on years of active naval service of Navy limited duty officers in grades of commander and captain.

      Sec.505.Tenure of Chief of the Air Force Nurse Corps.

      Sec.506.Grade of Air Force Assistant Surgeon General for Dental Services.

      Sec.507.Review regarding allocation of Naval Reserve Officers’ Training Corps scholarships among participating colleges and universities.

Subtitle B--Reserve Component Matters

      Sec.511.Use of Reserves for emergencies involving weapons of mass destruction.

      Sec.512.Service required for retirement of National Guard officer in higher grade.

      Sec.513.Reduced time-in-grade requirement for reserve general and flag officers involuntarily transferred from active status.

      Sec.514.Active status service requirement for promotion consideration for Army and Air Force reserve component brigadier generals.

      Sec.515.Composition of selective early retirement boards for rear admirals of the Naval Reserve and major generals of the Marine Corps Reserve.

      Sec.516.Authority for temporary waiver for certain Army Reserve officers of baccalaureate degree requirement for promotion of reserve officers.

      Sec.517.Furnishing of burial flags for deceased members and former members of the Selected Reserve.

Subtitle C--Military Education and Training

      Sec.521.Separate housing for male and female recruits during recruit basic training.

      Sec.522.After-hours privacy for recruits during basic training.

      Sec.523.Sense of the House of Representatives relating to small unit assignments by gender during recruit basic training.

      Sec.524.Extension of reporting dates for Commission on Military Training and Gender-Related Issues.

      Sec.525.Improved oversight of innovative readiness training.

Subtitle D--Decorations, Awards, and Commendations

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

      Sec.532.Waiver of time limitations for award of certain decorations to certain persons.

      Sec.533.Commendation and commemoration of the Navy and Marine Corps personnel who served in the United States Navy Asiatic Fleet from 1910-1942.

      Sec.534.Appreciation for service during World War I and World War II by members of the Navy assigned on board merchant ships as the Naval Armed Guard Service.

      Sec.535.Sense of Congress regarding the heroism, sacrifice, and service of the military forces of South Vietnam, other nations, and indigenous groups in connection with the United States Armed Forces during the Vietnam conflict.

      Sec.536.Sense of Congress regarding the heroism, sacrifice, and service of former South Vietnamese commandos in connection with United States Armed Forces during the Vietnam conflict.

      Sec.537.Prohibition on members of Armed Forces entering correctional facilities to present decorations to persons who have committed serious violent felonies.

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

      Sec.541.Personnel freeze.

      Sec.542.Professional staff.

      Sec.543.Ex parte communications.

      Sec.544.Timeliness standards.

      Sec.545.Scope of correction of military records.

Subtitle F--Reports

      Sec.551.Report on personnel retention.

      Sec.552.Report on process for selection of members for service on courts-martial.

      Sec.553.Report on prisoners transferred from United States Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal Bureau of Prisons.

      Sec.554.Review and report regarding the distribution of National Guard full-time support among the States.

Subtitle G--Other Matters

      Sec.561.Two-year extension of certain force drawdown transition authorities relating to personnel management and benefits.

      Sec.562.Leave without pay for suspended academy cadets and midshipmen.

      Sec.563.Continued eligibility under Voluntary Separation Incentive program for members who involuntarily lose membership in a reserve component.

      Sec.564.Reinstatement of definition of financial institution in authorities for reimbursement of defense personnel for Government errors in direct deposit of pay.

      Sec.565.Increase in maximum amount for College Fund program.

      Sec.566.Central Identification Laboratory, Hawaii.

      Sec.567.Military funeral honors for veterans.

      Sec.568.Status in the Naval Reserve of cadets at the Merchant Marine Academy.

      Sec.569.Repeal of restriction on civilian employment of enlisted members.

      Sec.570.Transitional compensation for abused dependent children not residing with the spouse or former spouse of a member convicted of dependent abuse.

      Sec.571.Pilot program for treating GED and home school diploma recipients as high school graduates for determinations of eligibility for enlistment in the Armed Forces.

      Sec.572.Sense of Congress concerning New Parent Support Program and military families.

      Sec.573.Advancement of Benjamin O. Davis, Junior, to grade of general on the retired list of the Air Force.

      Sec.574.Sense of the House of Representatives concerning adherence by civilians in military chain of command to the standard of exemplary conduct required of commanding officers and others in authority in the Armed Forces.

Subtitle A--Officer Personnel Policy

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

    (a) PERSONS NOT CONSIDERED BY PROMOTION BOARDS DUE TO ADMINISTRATIVE ERROR- Subsection (a) of section 628 of title 10, United States Code, is amended--

      (1) by striking out paragraph (1) (and the subsection designation at the beginning of that paragraph) and inserting in lieu thereof the following:

    ‘(a) PERSONS NOT CONSIDERED BY PROMOTION BOARDS DUE TO ADMINISTRATIVE ERROR- (1) If the Secretary of the military department concerned determines that because of administrative error a person who should have been considered for selection for promotion by a promotion board was not so considered, the Secretary shall convene a special selection board under this subsection to determine whether that person (whether or not then on active duty) should be recommended for promotion.’;

      (2) in paragraph (2), by striking out ‘the officer as his record’ in the first sentence and inserting in lieu thereof ‘the person whose name was referred to it for consideration as that record’; and

      (3) in paragraph (3), by striking out ‘an officer in a grade’ and all that follows through ‘the officer’ and inserting in lieu thereof ‘a person whose name was referred to it for consideration for selection for appointment to a grade other than a general officer or flag officer grade, the person’.

    (b) PERSONS CONSIDERED BY PROMOTION BOARDS IN UNFAIR MANNER- Subsection (b) of such section is amended--

      (1) by striking out paragraph (1) and inserting in lieu thereof the following:

    ‘(b) PERSONS CONSIDERED BY PROMOTION BOARDS IN UNFAIR MANNER- (1) If the Secretary of the military department concerned determines, in the case of a person who was considered for selection for promotion by a promotion board but was not selected, that there was material unfairness with respect to that person, the Secretary may convene a special selection board under this subsection to determine whether that person (whether or not then on active duty) should be recommended for promotion. In order to determine that there was material unfairness, the Secretary must determine that--

      ‘(A) the action of the promotion board that considered the person was contrary to law or involved material error of fact or material administrative error; or

      ‘(B) the board did not have before it for its consideration material information.’;

      (2) in paragraph (2), by striking out ‘the officer as his record’ in the first sentence and inserting in lieu thereof ‘the person whose name was referred to it for consideration as that record’; and

      (3) in paragraph (3)--

        (A) by striking out ‘an officer’ and inserting in lieu thereof ‘a person’; and

        (B) by striking out ‘the officer’ and inserting in lieu thereof ‘the person’.

    (c) CONFORMING AMENDMENTS- (1) Subsection (c) of such section is amended--

      (A) by inserting ‘REPORTS OF BOARDS- ’ after ‘(c)’;

      (B) by striking out ‘officer’ both places it appears in paragraph (1) and inserting in lieu thereof ‘person’; and

      (C) in paragraph (2), by adding the following new sentence at the end: ‘However, in the case of a board convened under this section to consider a warrant officer or former warrant officer, the provisions of sections 576(d) and 576(f) of this title (rather than the provisions of section 617(b) and 618 of this title) apply to the report and proceedings of the board in the same manner as they apply to the report and proceedings of a selection board convened under section 573 of this title.’.

    (2) Subsection (d)(1) of such section is amended--

      (A) by inserting ‘APPOINTMENT OF PERSONS SELECTED BY BOARDS- ’ after ‘(d)’;

      (B) by striking out ‘an officer’ and inserting in lieu thereof ‘a person’;

      (C) by striking out ‘such officer’ and inserting in lieu thereof ‘that person’;

      (D) by striking out ‘the next higher grade’ the second place it appears and inserting in lieu thereof ‘that grade’; and

      (E) by adding at the end the following: ‘However, in the case of a board convened under this section to consider a warrant officer or former warrant officer, if the report of that board, as approved by the Secretary concerned, recommends that warrant officer or former warrant officer for promotion to the next higher grade, that person shall, as soon as practicable, be appointed to the next higher grade in accordance with provisions of section 578(c) of this title (rather than subsections (b), (c), and (d) of section 624 of this title).’.

    (3) Subsection (d)(2) of such section is amended--

      (A) by striking out ‘An officer who is promoted’ and inserting in lieu thereof ‘A person who is appointed’;

      (B) by striking out ‘such promotion’ and inserting in lieu thereof ‘that appointment’; and

      (C) by adding at the end the following new sentence: ‘In the case of a person who is not on the active-duty list when appointed to the next higher grade, placement of that person on the active-duty list pursuant to the preceding sentence shall be only for purposes of determination of eligibility of that person for consideration for promotion by any subsequent special selection board under this section.’.

    (d) APPLICABILITY TO DECEASED PERSONS- Subsection (e) of such section is amended to read as follows:

    ‘(e) DECEASED PERSONS- If a person whose name is being considered for referral to a special selection board under this section dies before the completion of proceedings under this section with respect to that person, this section shall be applied to that person posthumously.’.

    (e) RECODIFICATION OF ADMINISTRATIVE MATTERS- Such section is further amended by adding at the end the following:

    ‘(f) CONVENING OF BOARDS- A board convened under this section--

      ‘(1) shall be convened under regulations prescribed by the Secretary of Defense;

      ‘(2) shall be composed in accordance with section 612 of this title or, in the case of board to consider a warrant officer or former warrant officer, in accordance with section 573 of this title and regulations prescribed by the Secretary of the military department concerned; and

      ‘(3) shall be subject to the provisions of section 613 of this title.

    ‘(g) PROMOTION BOARD DEFINED- In this section, the term ‘promotion board’ means a selection board convened by the Secretary of a military department under section 573(a) or 611(a) of this title.’.

    (f) RATIFICATION OF CODIFIED PRACTICE- The consideration by a special selection board convened under section 628 of title 10, United States Code, before the date of the enactment of this Act of a person who, at the time of consideration, was a retired officer or former officer of the Armed Forces (including a deceased retired or former officer) is hereby ratified.

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

    (a) INELIGIBILITY FOR SEPARATION PAY- Section 1174(a) of title 10, United States Code, is amended by adding at the end the following:

    ‘(3) Notwithstanding paragraphs (1) and (2), an officer discharged under any provision of chapter 36 of this title for twice failing of selection for promotion to the next higher grade is not entitled to separation pay under this section if either (or both) of those failures of selection for promotion was by the action of a selection board to which the officer submitted a request in writing not to be selected for promotion or who otherwise directly caused his nonselection through written communication to the Board under section 614(b) of this title.’.

    (b) REPORT OF SELECTION BOARD TO NAME OFFICERS REQUESTING NONSELECTION- Section 617 of such title is amended by adding at the end the following:

    ‘(c) A selection board convened under section 611(a) of this title shall include in its report to the Secretary concerned the name of any regular officer considered and not recommended for promotion by the board who submitted to the board a request not to be selected for promotion or who otherwise directly caused his nonselection through written communication to the Board under section 614(b) of this title.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to selection boards convened under section 611(a) of title 10, United States Code, on or after the date of the enactment of this Act.

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

    (a) REPEAL OF REQUIREMENT FOR DUPLICATIVE BOARD- Section 1183 of title 10, United States Code, is repealed.

    (b) CONFORMING AMENDMENTS- (1) Section 1182(c) of such title is amended by striking out ‘send the record of proceedings to a board of review convened under section 1183 of this title’ and inserting in lieu thereof ‘recommend to the Secretary concerned that the officer not be retained on active duty’.

    (2) Section 1184 of such title is amended by striking out ‘board of review convened under section 1183 of this title’ and inserting in lieu thereof ‘board of inquiry convened under section 1182 of this title’.

    (c) CLERICAL AMENDMENTS- (1) The heading for section 1184 of such title is amended by striking out ‘review’ and inserting in lieu thereof ‘inquiry’.

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

      ‘1184. Removal of officer: action by Secretary upon recommendation of board of inquiry.’.

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

    (a) COMMANDERS- Section 633 of title 10, United States Code, is amended--

      (1) by striking out ‘Except an officer’ and all that follows through ‘or section 6383 of this title applies’ and inserting in lieu thereof ‘Except an officer of the Navy or Marine Corps who is an officer designated for limited duty to whom section 5596(e) or 6383 of this title applies’; and

      (2) by striking out the second sentence.

    (b) CAPTAINS- Section 634 of such title is amended--

      (1) by inserting ‘an officer of the Navy who is designated for limited duty to whom section 6383(a)(4) of this title applies and except’ in the first sentence after ‘Except’; and

      (2) by striking out the second sentence.

    (c) YEARS OF ACTIVE NAVAL SERVICE- Section 6383(a) of such title is amended by striking out paragraph (5).

    (d) LIMITATIONS ON SELECTIVE RETENTIONS- Section 6383(k) of such title is amended by striking out the last sentence.

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

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

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

    Section 8081 of title 10, United States Code, is amended--

      (1) in the first sentence, by striking out ‘major’ and inserting in lieu thereof ‘lieutenant colonel’; and

      (2) by striking out the second sentence and inserting in lieu thereof the following: ‘An appointee who holds a lower regular grade shall be appointed in the regular grade of brigadier general. The Assistant Surgeon General for Dental Services serves at the pleasure of the Secretary.’.

SEC. 507. REVIEW REGARDING ALLOCATION OF NAVAL RESERVE OFFICERS’ TRAINING CORPS SCHOLARSHIPS AMONG PARTICIPATING COLLEGES AND UNIVERSITIES.

    (a) REVIEW- The Secretary of the Navy should review the process and criteria used to determine the number of Naval Reserve Officer Training Corps (NROTC) scholarship recipients who attend each college and university participating in the NROTC program and how those scholarships are allocated to those schools.

    (b) PURPOSE OF REVIEW- The review should seek to determine--

      (1) whether the method used by the Navy to allocate NROTC scholarships could be changed so as to increase the likelihood that scholarship awardees attend the school of their choice while maintaining the Navy’s capability to attain the objectives of the Naval ROTC program to meet the annual requirement for newly commissioned Navy ensigns and Marine Corps second lieutenants, as well as the overall needs of the officer corps of the Department of the Navy; and

      (2) within the determination under paragraph (1), whether the likelihood of a scholarship awardee who wants to attend a school of choice in the student’s State of residence can be increased.

    (c) MATTERS REVIEWED- The matters reviewed should include the following:

      (1) The factors and criteria considered in the process of determining the allocation of NROTC scholarships to host colleges and universities.

      (2) Historical data indicating the extent to which NROTC scholarship recipients attend colleges and universities they have indicated a preference to attend, as opposed to attending solely or mainly in order to receive an NROTC scholarship.

      (3) The extent to which the process used by the Navy to allocate NROTC scholarships to participating colleges and universities contributes to optimizing resources available for the operation of the NROTC program and improving the professional education of NROTC midshipmen.

      (4) The effects that eliminating the controlled allocation of scholarships to host colleges and universities, entirely or by State, would have on the NROTC program.

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

Subtitle B--Reserve Component Matters

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

    (a) ORDER TO ACTIVE DUTY- (1) Section 12304 of title 10, United States Code, is amended--

      (A) in subsection (a), by inserting ‘or that it is necessary to provide assistance referred to in subsection (b)’ after ‘to augment the active forces for any operational mission’;

      (B) in subsection (b)--

        (i) by striking out ‘(b)’ and inserting in lieu thereof ‘(c) LIMITATIONS- (1)’; and

        (ii) by striking out ‘, or to provide’ and inserting in lieu thereof ‘or, except as provided in subsection (b), to provide’;

      (C) by redesignating subsection (c) as paragraph (2); and

      (D) by inserting after subsection (a) the following new subsection (b):

    ‘(b) SUPPORT FOR RESPONSES TO CERTAIN EMERGENCIES- The authority under subsection (a) includes authority to order a unit or member to active duty to provide assistance in responding to an emergency involving a use or threatened use of a weapon of mass destruction.’.

    (2) Subsection (i) of such section is amended to read as follows:

    ‘(i) DEFINITIONS- In this section:

      ‘(1) The term ‘Individual Ready Reserve mobilization category’ means, in the case of any reserve component, the category of the Individual Ready Reserve described in section 10144(b) of this title.

      ‘(2) The term ‘weapon of mass destruction’ has the meaning given that term in section 1403 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).’.

    (3) Such section is further amended--

      (A) in subsection (a), by inserting ‘AUTHORITY- ’ after ‘(a)’;

      (B) in subsection (d), by inserting ‘EXCLUSION FROM STRENGTH LIMITATIONS- ’ after ‘(d)’;

      (C) in subsection (e), by inserting ‘POLICIES AND PROCEDURES- ’ after ‘(e)’;

      (D) in subsection (f), by inserting ‘NOTIFICATION OF CONGRESS- ’ after ‘(f)’;

      (E) in subsection (g), by inserting ‘TERMINATION OF DUTY- ’ after ‘(g)’; and

      (F) in subsection (h), by inserting ‘RELATIONSHIP TO WAR POWERS RESOLUTION- ’ after ‘(h)’.

    (b) USE OF ACTIVE GUARD AND RESERVE PERSONNEL- (1) Section 12310 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(c)(1) A Reserve on active duty as described in subsection (a), or a Reserve who is a member of the National Guard serving on full-time National Guard duty under section 502(f) of title 32 in connection with functions referred to in subsection (a), may, subject to paragraph (3), perform duties in support of emergency preparedness programs to prepare for or to respond to any emergency involving the use of a weapon of mass destruction (as defined in section 1403 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).

    ‘(2) The costs of the pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for a Reserve performing duties under the authority of paragraph (1) shall be paid from the appropriation that is available to pay such costs for other members of the reserve component of that Reserve who are performing duties as described in subsection (a).

    ‘(3) A Reserve may perform duties described in paragraph (1) only--

      ‘(A) while assigned to the Department of Defense Consequence Management Program Integration Office; or

      ‘(B) while assigned to a reserve component rapid assessment element team and performing those duties within the geographical limits of the United States, its territories and possessions, the District of Columbia, and the Commonwealth of Puerto Rico.

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

    ‘(5) A reserve component rapid assessment element team, and any Reserve assigned to such a team, may not be used to respond to an emergency described in paragraph (1) unless the Secretary of Defense has certified to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives that that team, or that Reserve, possesses the requisite skills, training, and equipment to be proficient in all mission requirements.

    ‘(6) If the Secretary of Defense submits to Congress any request for the enactment of legislation to modify the requirements of paragraph (3) or to increase the number of personnel authorized by paragraph (4), the Secretary shall provide with the request--

      ‘(A) justification for each such requested modification or for the requested additional personnel and explain the need for the increase in the context of existing or projected similar capabilities at the local, State, and Federal levels; and

      ‘(B) the Secretary’s plan for sustaining the qualifications of the personnel and teams described in paragraph (3)(B).’.

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

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

    (a) REVISION OF REQUIREMENT- Subparagraph (E) of section 1370(d)(3) of title 10, United States Code, is amended to read as follows:

    ‘(E) To the extent authorized by the Secretary of the military department concerned, a person who, after having been found qualified for Federal recognition in a higher grade by a board under section 307 of title 32, serves in a position for which that grade is the minimum authorized grade and is appointed as a reserve officer in that grade may be credited for the purposes of subparagraph (A) as having served in that grade. The period of the service for which credit is afforded under the preceding sentence may only be the period for which the person served in the position after the Senate provides advice and consent for the appointment.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on the date of the enactment of this Act and shall apply with respect to appointments to higher grades that take effect after that date.

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

    (a) MINIMUM SERVICE IN ACTIVE STATUS- Section 1370(d)(3) of title 10, United States Code, as amended by section 511, is further amended by adding at the end the following new subparagraph:

    ‘(F) A person covered by subparagraph (A) who has completed at least six months of satisfactory service in a grade above colonel or (in the case of the Navy) captain and, while serving in an active status in such grade, is involuntarily transferred (other than for cause) from active status may be credited with satisfactory service in the grade in which serving at the time of such transfer, notwithstanding failure of the person to complete three years of service in that grade.’.

    (b) EFFECTIVE DATE- Subparagraph (F) of such section, as added by subsection (a), shall take effect on the date of the enactment of this Act and shall apply with respect to transfers referred to in such subparagraph that are made on or after that date.

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

    Section 14301 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) A reserve component brigadier general of the Army or the Air Force who is in an inactive status is eligible (notwithstanding subsection (a)) for consideration for promotion to major general by a promotion board convened under section 14101(a) of this title if the officer--

      ‘(1) has been in an inactive status for less than 1 year as of the date of the convening of the promotion board; and

      ‘(2) had continuously served for at least 1 year on the reserve active status list or the active duty list (or a combination of both) immediately before the officer’s most recent transfer to an inactive status.’.

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

    (a) IN GENERAL- Section 14705(b) of title 10, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(b) BOARDS- ’; and

      (2) by adding at the end the following:

    ‘(2) In the case of such a board convened to consider officers in the grade of rear admiral or major general, the Secretary of the Navy may appoint the board without regard to section 14102(b) of this title. In doing so, however, the Secretary shall ensure that--

      ‘(A) each regular commissioned officer appointed to the board holds a grade higher than the grade of rear admiral or major general; and

      ‘(B) at least one member of the board is a reserve officer who holds the grade of rear admiral or major general.’.

    (b) TECHNICAL AMENDMENTS- Paragraph (1) of such section, as designated by subsection (a)(1), is amended--

      (1) by inserting ‘of officers’ after ‘consideration’; and

      (2) by inserting ‘continuation’ after ‘shall convene a’.

SEC. 516. AUTHORITY FOR TEMPORARY WAIVER FOR CERTAIN ARMY RESERVE OFFICERS OF BACCALAUREATE DEGREE REQUIREMENT FOR PROMOTION OF RESERVE OFFICERS.

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

    (b) EXPIRATION OF AUTHORITY- A waiver under this section may not be granted after September 30, 2000.

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

    Section 2301 of title 38, United States Code, is amended by adding at the end the following new subsection:

    ‘(f)(1) The Secretary shall furnish a flag to drape the casket of each deceased member or former member of the Selected Reserve (as described in section 10143 of title 10) who is not otherwise eligible for a flag under this section or section 1482(a) of title 10--

      ‘(A) who completed at least one enlistment as a member of the Selected Reserve or, in the case of an officer, completed the period of initial obligated service as a member of the Selected Reserve;

      ‘(B) who was discharged before completion of the person’s initial enlistment as a member of the Selected Reserve or, in the case of an officer, period of initial obligated service as a member of the Selected Reserve, for a disability incurred or aggravated in line of duty; or

      ‘(C) who died while a member of the Selected Reserve.

    ‘(2) A flag may not be furnished under subparagraphs (A) or (B) of paragraph (1) in the case of a person whose last discharge from service in the Armed Forces was under conditions less favorable than honorable.

    ‘(3) After the burial, a flag furnished under paragraph (1) shall be given to the next of kin or to such other person as the Secretary considers appropriate.’.

Subtitle C--Military Education and Training

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

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

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

    ‘(a) PHYSICALLY SEPARATE HOUSING- (1) The Secretary of the Army shall provide for housing male recruits and female recruits separately and securely from each other during basic training.

    ‘(2) To meet the requirements of paragraph (1), the sleeping areas and latrine areas provided for male recruits shall be physically separated from the sleeping areas and latrine areas provided for female recruits by permanent walls, and the areas for male recruits and the areas for female recruits shall have separate entrances.

    ‘(3) The Secretary shall ensure that, when a recruit is in an area referred to in paragraph (2), the area is supervised by one or more persons who are authorized and trained to supervise the area.

    ‘(b) ALTERNATIVE SEPARATE HOUSING- If male recruits and female recruits cannot be housed as provided under subsection (a) by October 1, 2001, at a particular installation, the Secretary of the Army shall require (on and after that date) that male recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for males and that female recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for females.

    ‘(c) CONSTRUCTION PLANNING- In planning for the construction of housing to be used for housing recruits during basic training, the Secretary of the Army shall ensure that the housing is to be constructed in a manner that facilitates the housing of male recruits and female recruits separately and securely from each other.

    ‘(d) BASIC TRAINING DEFINED- In this section, the term ‘basic training’ means the initial entry training program of the Army that constitutes the basic training of new recruits.’.

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

      ‘4319. Recruit basic training: separate housing for male and female recruits.’.

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

    (b) NAVY AND MARINE CORPS- (1) Part III of subtitle C of title 10, United States Code, is amended by inserting after chapter 601 the following new chapter:

‘CHAPTER 602--TRAINING GENERALLY

      ‘Sec.

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

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

    ‘(a) PHYSICALLY SEPARATE HOUSING- (1) The Secretary of the Navy shall provide for housing male recruits and female recruits separately and securely from each other during basic training.

    ‘(2) To meet the requirements of paragraph (1), the sleeping areas and latrine areas provided for male recruits shall be physically separated from the sleeping areas and latrine areas provided for female recruits by permanent walls, and the areas for male recruits and the areas for female recruits shall have separate entrances.

    ‘(3) The Secretary shall ensure that, when a recruit is in an area referred to in paragraph (2), the area is supervised by one or more persons who are authorized and trained to supervise the area.

    ‘(b) ALTERNATIVE SEPARATE HOUSING- If male recruits and female recruits cannot be housed as provided under subsection (a) by October 1, 2001, at a particular installation, the Secretary of the Navy shall require (on and after that date) that male recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for males and that female recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for females.

    ‘(c) CONSTRUCTION PLANNING- In planning for the construction of housing to be used for housing recruits during basic training, the Secretary of the Navy shall ensure that the housing is to be constructed in a manner that facilitates the housing of male recruits and female recruits separately and securely from each other.

    ‘(d) BASIC TRAINING DEFINED- In this section, the term ‘basic training’ means the initial entry training programs of the Navy and Marine Corps that constitute the basic training of new recruits.’.

    (2) The tables of chapters at the beginning of subtitle C, and at the beginning of part III of subtitle C, of such title are amended by inserting after the item relating to chapter 601 the following new item:

6931’.

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

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

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

    ‘(a) PHYSICALLY SEPARATE HOUSING- (1) The Secretary of the Air Force shall provide for housing male recruits and female recruits separately and securely from each other during basic training.

    ‘(2) To meet the requirements of paragraph (1), the sleeping areas and latrine areas provided for male recruits shall be physically separated from the sleeping areas and latrine areas provided for female recruits by permanent walls, and the areas for male recruits and the areas for female recruits shall have separate entrances.

    ‘(3) The Secretary shall ensure that, when a recruit is in an area referred to in paragraph (2), the area is supervised by one or more persons who are authorized and trained to supervise the area.

    ‘(b) ALTERNATIVE SEPARATE HOUSING- If male recruits and female recruits cannot be housed as provided under subsection (a) by October 1, 2001, at a particular installation, the Secretary of the Air Force shall require (on and after that date) that male recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for males and that female recruits in basic training at such installation be housed in barracks or other troop housing facilities that are only for females.

    ‘(c) CONSTRUCTION PLANNING- In planning for the construction of housing to be used for housing recruits during basic training, the Secretary of the Air Force shall ensure that the housing is to be constructed in a manner that facilitates the housing of male recruits and female recruits separately and securely from each other.

    ‘(d) BASIC TRAINING DEFINED- In this section, the term ‘basic training’ means the initial entry training program of the Air Force that constitutes the basic training of new recruits.’.

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

      ‘9319. Recruit basic training: separate housing for male and female recruits.’.

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

    (d) GAO REVIEW OF COSTS OF SEPARATE HOUSING FACILITIES FOR MALE AND FEMALE RECRUITS DURING RECRUIT BASIC TRAINING- Not later than March 1, 1999, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the costs that would be incurred by each of the military departments if required to provide housing for male and female recruits during basic training in separate structures. The report shall be prepared separately for each of the Army, Navy, and Air Force and shall be based on reviews and cost analyses prepared independently of the Department of Defense.

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

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

‘Sec. 4320. Recruit basic training: privacy

    ‘The Secretary of the Army shall require that access by drill sergeants and other training personnel to a living area in which recruits are housed during basic training shall be limited after the end of the training day, other than in the case of an emergency or other exigent circumstance, to drill sergeants and other training personnel who are of the same sex as the recruits housed in that living area or to superiors in the chain of command of those recruits who, if not of the same sex as the recruits housed in that living area, are accompanied by a member (other than a recruit) who is of the same sex as the recruits housed in that living area.’.

    (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 4319, as added by section 521(a)(2), the following new item:

      ‘4320. Recruit basic training: privacy.’.

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

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

‘Sec. 6932. Recruit basic training: privacy

    ‘The Secretary of the Navy shall require that access by recruit division commanders and other training personnel to a living area in which Navy recruits are housed during basic training shall be limited after the end of the training day, other than in the case of an emergency or other exigent circumstance, to recruit division commanders and other training personnel who are of the same sex as the recruits housed in that living area or to superiors in the chain of command of those recruits who, if not of the same sex as the recruits housed in that living area, are accompanied by a member (other than a recruit) who is of the same sex as the recruits housed in that living area.’.

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

      ‘6932. Recruit basic training: privacy.’.

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

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

‘Sec. 9320. Recruit basic training: privacy

    ‘The Secretary of the Air Force shall require that access by military training instructors and other training personnel to a living area in which recruits are housed during basic training shall be limited after the end of the training day, other than in the case of an emergency or other exigent circumstance, to military training instructors and other training personnel who are of the same sex as the recruits housed in that living area or to superiors in the chain of command of those recruits who, if not of the same sex as the recruits housed in that living area, are accompanied by a member (other than a recruit) who is of the same sex as the recruits housed in that living area.’.

    (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 9319, as added by section 521(c)(2), the following new item:

      ‘9320. Recruit basic training: privacy.’.

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

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

    It is the sense of the House of Representatives that the Secretary of each military department should require that during recruit basic training male recruits and female recruits be assigned to separate units at the small unit levels designated by the different services as platoons, divisions, or flights, as recommended in the report of the Federal Advisory Committee on Gender-Integrated Training and Related Issues, chaired by Nancy Kassebaum-Baker, that was submitted to the Secretary of Defense on December 16, 1997.

SEC. 524. EXTENSION OF REPORTING DATES FOR COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES.

    (a) FIRST REPORT- Subsection (e)(1) of section 562 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1754) is amended by striking out ‘April 15, 1998’ and inserting in lieu thereof ‘October 15, 1998’.

    (b) FINAL REPORT- Subsection (e)(2) of such section is amended by striking out ‘September 16, 1998’ and inserting in lieu thereof ‘March 15, 1999’.

SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.

    (a) IN GENERAL- Section 2012 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(j) OVERSIGHT AND COST ACCOUNTING- The Secretary of Defense shall establish a program to improve the oversight and cost accounting of training projects conducted in accordance with this section. The program shall include measures to accomplish the following:

      ‘(1) Ensure that each project that is proposed to be conducted in accordance with this section (regardless of whether additional funding from the Secretary of Defense is sought) is requested in writing, reviewed for full compliance with this section, and approved in advance of initiation by the Secretary of the military department concerned and, in the case of a project that seeks additional funding from the Secretary of Defense, by the Secretary of Defense.

      ‘(2) Ensure that each project that is conducted in accordance with this section is required to provide, within a specified period following completion of the project, an after-action report to the Secretary of Defense.

      ‘(3) Require that each application for a project to be conducted in accordance with this section include an analysis and certification that the proposed project would not result in a significant increase in the cost of training (as determined in accordance with procedures prescribed by the Secretary of Defense).

      ‘(4) Determine the total program cost for each project, including both those costs that are borne by the military departments from their own accounts and those costs that are borne by defense-wide accounts.

      ‘(5) Provide for oversight of project execution to ensure that a training project under this section is carried out in accordance with the proposal for that project as approved.’.

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

Subtitle D--Decorations, Awards, and Commendations

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

    (a) STUDY OF NEED AND CRITERIA FOR NEW DECORATION- (1) The Secretary of Defense shall carry out a study of the need for, and the the appropriate criteria for, two possible new decorations.

    (2) The first such decoration would, if implemented, be awarded to members of the Armed Forces who, while serving under competent authority in any capacity with the Armed Forces, are killed or injured in the line of duty as a result of noncombat circumstances occurring--

      (A) as a result of an international terrorist attack against the United States or a foreign nation friendly to the United States;

      (B) while engaged in, training for, or traveling to or from a peacetime or contingency operation; or

      (C) while engaged in, training for, or traveling to or from service outside the territory of the United States as part of a peacekeeping force.

    (3) The second such decoration would, if implemented, be awarded to civilian nationals of the United States who, while serving under competent authority in any capacity with the Armed Forces, are killed or injured in the line of duty under circumstances which, if they were members of the Armed Forces, would qualify them for award of the Purple Heart or the medal described in paragraph (2).

    (b) RECOMMENDATION TO CONGRESS- Not later than July 31, 1999, the Secretary shall submit to Congress a report setting forth the Secretary’s recommendation concerning the need for, and propriety of, each of the possible new decorations referred to in subsection (a).

    (c) COORDINATION- The Secretary shall carry out this section in coordination with the Secretaries of the military departments and the Secretary of Transportation with regard to the Coast Guard.

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

    (a) WAIVER- Any limitation established by law or policy for the time within which a recommendation for the award of a military decoration or award must be submitted shall not apply to awards of decorations described in this section, the award of each such decoration having been determined by the Secretary of the military department concerned to be warranted in accordance with section 1130 of title 10, United States Code.

    (b) DISTINGUISHED-SERVICE CROSS- Subsection (a) applies to the award of the Distinguished-Service Cross of the Army as follows:

      (1) To Isaac Camacho of El Paso, Texas, for extraordinary heroism in actions at Camp Hiep Hoa in Vietnam on November 24, 1963, while serving as a member of the Army.

      (2) To Bruce P. Crandall of Mesa, Arizona, for extraordinary heroism in actions at Landing Zone X-Ray in Vietnam on November 14, 1965, while serving as a member of the Army.

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

    (c) DISTINGUISHED-SERVICE MEDAL- Subsection (a) applies to the award of the Distinguished-Service Medal of the Army to Richard P. Sakakida of Fremont, California, for exceptionally meritorious service while a prisoner of war in the Philippine Islands from May 7, 1942, to September 14, 1945, while serving as a member of the Army.

    (d) NAVY CROSS- Subsection (a) applies to the posthumous award of the Navy Cross to Joseph F. Keenan for extraordinary heroism in actions on March 26-27, 1953, while serving as a member of the Navy.

    (e) SILVER STAR MEDAL- Subsection (a) applies to the award of the Silver Star Medal of the Navy to Andrew A. Bernard of Methuen, Massachusetts, for gallantry in action on November 24, 1943, while serving as a member of the Navy.

    (f) DISTINGUISHED FLYING CROSS- Subsection (a) applies to the award of the Distinguished Flying Cross for service during World War II or Korea (including multiple awards to the same individual) in the case of each individual (not covered by section 573(d) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1757)) concerning whom the Secretary of the Navy (or an officer of the Navy acting on behalf of the Secretary) submitted to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate, before the date of the enactment of this Act, a notice as provided in section 1130(b) of title 10, United States Code, that the award of the Distinguished Flying Cross to that individual is warranted and that a waiver of time restrictions prescribed by law for recommendation for such award is recommended.

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

    (a) FINDINGS- Congress makes the following findings:

      (1) The United States established the Asiatic Fleet of the Navy in 1910 to protect United States nationals, policies, and possessions in the Far East.

      (2) The sailors and Marines of the Asiatic Fleet ensured the safety of United States and foreign nationals and provided humanitarian assistance in that region during the Chinese civil war, the Yangtze Flood of 1931, and the outbreak of Sino-Japanese hostilities.

      (3) In 1940, due to deteriorating political relations and increasing tensions between the United States and Japan, a reinforced Asiatic Fleet began concentrating on the defense of the Philippines and engaged in extensive training to ensure maximum operational readiness for any eventuality.

      (4) Following the declaration of war against Japan in December 1941, the warships, submarines, and aircraft of the Asiatic Fleet courageously fought many battles against superior Japanese forces.

      (5) The Asiatic Fleet directly suffered the loss of 22 vessels, 1,826 men killed or missing in action, and 518 men captured and imprisoned under the worst of conditions, with many of them dying while held as prisoners of war.

    (b) CONGRESSIONAL COMMENDATION- Congress--

      (1) commends the Navy and Marine Corps personnel who served in the Asiatic Fleet of the United States Navy during the period from 1910 to 1942; and

      (2) honors those who gave their lives in the line of duty while serving in the Asiatic Fleet.

    (c) COMMEMORATION OF UNITED STATES NAVY ASIATIC FLEET- The President is authorized and requested to issue a proclamation designating an appropriate commemoration of the United States Navy Asiatic Fleet and calling upon the people of the United States to observe such commemoration with appropriate programs, ceremonies, and activities.

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

    (a) FINDINGS- Congress makes the following findings:

      (1) The Navy established a special force during both World War I and World War II, known as the Naval Armed Guard Service, to protect merchant ships of the United States from enemy attack by stationing members of the Navy and weapons on board those ships.

      (2) Members of the Naval Armed Guard Service served on 6,236 merchant ships during World War II, of which 710 were sunk by enemy action.

      (3) Over 144,900 members of the Navy served in the Naval Armed Guard Service during World War II as officers, gun crewmen, signalmen, and radiomen, of whom 1,810 were killed in action.

      (4) The efforts of the members of the Naval Armed Guard Service played a significant role in the safe passage of United States merchant ships to their destinations in the Soviet Union and various locations in western Europe and the Pacific Theater.

      (5) The efforts of the members of the Navy who served in the Naval Armed Guard Service have been largely overlooked due to the rapid disbanding of the service after World War II and lack of adequate records.

      (6) Recognition of the service of the naval personnel who served in the Naval Armed Guard Service is highly warranted and long overdue.

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

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

    (a) FINDINGS- Congress finds the following:

      (1) South Vietnam, Australia, South Korea, Thailand, New Zealand, and the Philippines contributed military forces, together with the United States, during military operations conducted in Southeast Asia during the Vietnam conflict.

      (2) Indigenous groups, such as the Hmong, Nung, Montagnard, Kahmer, Hoa Hao, and Cao Dai contributed military forces, together with the United States, during military operations conducted in Southeast Asia during the Vietnam conflict.

      (3) The contributions of these combat forces continued through long years of armed conflict.

      (4) As a result, in addition to the United States casualties exceeding 210,000, this willingness to participate in the Vietnam conflict resulted in the death and wounding of more than 1,000,000 military personnel from South Vietnam and 16,000 from other allied nations.

      (5) The service of the Vietnamese, indigenous groups, and other allied nations was repeatedly marked by exceptional heroism and sacrifice, with particularly noteworthy contributions being made by the Vietnamese airborne, commando, infantry and ranger units, the Republic of Korea marines, the Capital and White Horse divisions, the Royal Thai Army Black Panther Division, the Royal Australian Regiment, the New Zealand ‘V’ force, and the 1st Philippine Civic Action Group.

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

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

    (a) FINDINGS- Congress finds the following:

      (1) South Vietnamese commandos were recruited by the United States as part of OPLAN 34A or its predecessor or OPLAN 35 from 1961 to 1970.

      (2) The commandos conducted covert operations in North Vietnam during the Vietnam conflict.

      (3) Many of the commandos were captured and imprisoned by North Vietnamese forces, some for as long as 20 years.

      (4) The commandos served and fought proudly during the Vietnam conflict.

      (5) Many of the commandos lost their lives serving in operations conducted by the United States during the Vietnam conflict.

      (6) Many of the Vietnamese commandos now reside in the United States.

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

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

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

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

    ‘(a) PROHIBITION- A member of the armed forces may not enter a Federal, State, local, or foreign correctional facility to present a decoration to a person who is incarcerated due to conviction of a serious violent felony.

    ‘(b) DEFINITIONS- In this section:

      ‘(1) The term ‘decoration’ means any decoration or award that may be presented or awarded to a member of the armed forces.

      ‘(2) The term ‘serious violent felony’ has the meaning given that term in section 3559(c)(2)(F) of title 18.’.

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

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

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

SEC. 541. PERSONNEL FREEZE.

    (a) LIMITATION- During fiscal years 1999, 2000, and 2001, the Secretary of a military department may not carry out any reduction in the number of military and civilian personnel assigned to duty with the service review agency for that military department below the baseline number for that agency until--

      (1) the Secretary submits to Congress a report that describes the reduction proposed to be made, provides the Secretary’s rationale for that reduction, and specifies the number of such personnel that would be assigned to duty with that agency after the reduction; and

      (2) a period of 90 days has elapsed after the date on which such report is submitted.

    (b) BASELINE NUMBER- The baseline number for a service review agency under this section is--

      (1) for purposes of the first report with respect to a service review agency under this section, the number of military and civilian personnel assigned to duty with that agency as of October 1, 1997; and

      (2) for purposes of any subsequent report with respect to a service review agency under this section, the number of such personnel specified in the most recent report with respect to that agency under this section.

    (c) SERVICE REVIEW AGENCY DEFINED- In this section, the term ‘service review agency’ means--

      (1) with respect to the Department of the Army, the Army Review Boards Agency;

      (2) with respect to the Department of the Navy, the Board for Correction of Naval Records; and

      (3) with respect to the Department of the Air Force, the Air Force Review Boards Agency.

SEC. 542. PROFESSIONAL STAFF.

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

‘Sec. 1555. Professional staff

    ‘(a) The Secretary of each military department shall assign to the staff of the service review agency of that military department at least one attorney and at least one physician. Such assignments shall be made on a permanent, full-time basis and may be made from members of the armed forces or civilian employees.

    ‘(b) Personnel assigned pursuant to subsection (a)--

      ‘(1) shall work under the supervision of the director or executive director (as the case may be) of the service review agency; and

      ‘(2) shall be assigned duties as advisers to the director or executive director or other staff members on legal and medical matters, respectively, that are being considered by the agency.

    ‘(c) In this section, the term ‘service review agency’ means--

      ‘(1) with respect to the Department of the Army, the Army Review Boards Agency;

      ‘(2) with respect to the Department of the Navy, the Board for Correction of Naval Records; and

      ‘(3) with respect to the Department of the Air Force, the Air Force Review Boards Agency.’.

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

      ‘1555. Professional staff.’.

    (b) EFFECTIVE DATE- Section 1555 of title 10, United States Code, as added by subsection (a), shall take effect 180 days after the date of the enactment of this Act.

SEC. 543. EX PARTE COMMUNICATIONS.

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

‘Sec. 1556. Ex parte communications prohibited

    ‘(a) IN GENERAL- The Secretary of each military department shall ensure that an applicant seeking corrective action by the Army Review Boards Agency, the Air Force Review Boards Agency, or the Board for Correction of Naval Records, as the case may be, is provided a copy of all correspondence and communications (including summaries of verbal communications) to or from the agency or board, or a member of the staff of the agency or board, with an entity or person outside the agency or board that pertain directly to the applicant’s case or have a material effect on the applicant’s case.

    ‘(b) EXCEPTIONS- Subsection (a) does not apply to the following:

      ‘(1) Classified information.

      ‘(2) Information the release of which is otherwise prohibited by law or regulation.

      ‘(3) Any record previously provided to the applicant or known to be possessed by the applicant.

      ‘(4) Any correspondence that is purely administrative in nature.

      ‘(5) Any military record that is (or may be) provided to the applicant by the Secretary of the military department or other source.’.

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

      ‘1556. Ex parte communications prohibited.’.

    (b) EFFECTIVE DATE- Section 1556 of title 10, United States Code, as added by subsection (a), shall apply with respect to correspondence and communications made 60 days or more after the date of the enactment of this Act.

SEC. 544. TIMELINESS STANDARDS.

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

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

    ‘(a) TEN-MONTH CLEARANCE PERCENTAGE- Of the applications received by a Corrections Board during a period specified in the following table, the percentage on which final action by the Corrections Board must be completed within 10 months of receipt (other than for those applications considered suitable for administrative correction) is as follows:

The percentage on which final

‘For applications

Correction Board action

received during--

must be completed within

10 months of receipt is--

the period of fiscal years 2001 and 2002

50

the period of fiscal years 2003 and 2004

60

the period of fiscal years 2005, 2006, and 2007

70

the period of fiscal years 2008, 2009, and 2010

80

the period of any fiscal year after fiscal year 2010

90.

    ‘(b) CLEARANCE DEADLINE FOR ALL APPLICATIONS- Effective October 1, 2002, final action by a Corrections Board on all applications received by the Corrections Board (other than those applications considered suitable for administrative correction) shall be completed within 18 months of receipt.

    ‘(c) WAIVER AUTHORITY- The Secretary of the military department concerned may exclude an individual application from the timeliness standards prescribed in subsections (a) and (b) if the Secretary determines that the application warrants a longer period of consideration. The authority of the Secretary of a military department under this subsection may not be delegated.

    ‘(d) FAILURE TO MEET TIMELINESS STANDARDS NOT TO AFFECT ANY INDIVIDUAL APPLICATION- Failure of a Corrections Board to meet the applicable timeliness standard for any period of time under subsection (a) or (b) does not confer any presumption or advantage with respect to consideration by the board of any application.

    ‘(e) REPORTS ON FAILURE TO MEET TIMELINESS STANDARDS- The Secretary of the military department concerned shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report not later than June 1 following any fiscal year during which the Corrections Board of that Secretary’s military department was unable to meet the applicable timeliness standard for that fiscal year under subsections (a) and (b). The report shall specify the reasons why the standard could not be met and the corrective actions initiated to ensure compliance in the future. The report shall also specify the number of waivers granted under subsection (c) during that fiscal year.

    ‘(f) CORRECTIONS BOARD DEFINED- In this section, the term ‘Corrections Board’ means--

      ‘(1) with respect to the Department of the Army, the Army Board for Correction of Military Records;

      ‘(2) with respect to the Department of the Navy, the Board for Correction of Naval Records; and

      ‘(3) with respect to the Department of the Air Force, the Air Force Board for Correction of Military Records.’.

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

      ‘1557. Timeliness standards for disposition of applications before Corrections Boards.’.

SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

    (a) PAYMENT OF CLAIMS ARISING FROM CORRECTION- Subsection (c) of section 1552 of title 10, United States Code, is amended in the first sentence by inserting before the period the following: ‘, or on account of his or another’s service as a civilian employee’.

    (b) DEFINITION OF MILITARY RECORD- Such section is further amended by adding at the end the following new subsection:

    ‘(g) In this section, the term ‘military record’ means a document or other record that pertains to (1) an individual member or former member of the armed forces, or (2) at the discretion of the Secretary of the military department concerned, any other military matter affecting a member or former member of the armed forces, an employee or former employee of that military department, or a dependent or current or former spouse of any such person. Such term does not include records pertaining to civilian employment matters (such as matters covered by title 5 and chapters 81, 83, 87, 108, 373, 605, 607, 643, and 873 of this title).’.

    (c) REPORT- The Secretary of Defense shall submit to Congress, not later than March 31, 1999, a report on the effect of the six-year bar to retroactive benefits contained in section 3702 of title 31, United States Code, and the Secretary’s recommendation as to whether it is appropriate for the Secretaries of the military departments to have authority to waive that limitation in selected cases involving implementation of decisions of the Secretary of a military department under chapter 79 of title 10, United States Code. The report shall be prepared in consultation with the Secretaries of the military departments.

Subtitle F--Reports

SEC. 551. REPORT ON PERSONNEL RETENTION.

    (a) REPORT REQUIRED- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report containing information on the retention of members of the Armed Forces on active duty in the combat, combat support, and combat service support forces of the Army, Navy, Air Force, and Marine Corps.

    (b) REQUIRED INFORMATION- The Secretary shall include in the report information on retention of members with military occupational specialties (or the equivalent) in combat, combat support, or combat service support positions in each of the Army, Navy, Air Force, and Marine Corps. Such information shall be shown by pay grade and shall be aggregated by enlisted grades and officers grades and shall be shown by military occupational specialty (or the equivalent). The report shall set forth separately (in numbers and as a percentage) the number of members separated during each such fiscal year who terminate service in the Armed Forces completely and the number who separate from active duty by transferring into a reserve component.

    (c) YEARS COVERED BY REPORT- The report shall provide the information required in the report, shown on a fiscal year basis, for each of fiscal years 1989 through 1998.

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

    (a) REPORT REQUIRED- Not later than April 15, 1999, the Secretary of Defense shall submit to Congress a report on the method of selection of members of the Armed Forces to serve on courts-martial.

    (b) CONSIDERATION OF ALTERNATIVES- In preparing the report, the Secretary shall examine alternatives, including random selection, to the current system of selection of members of courts-martial by the convening authority. Any alternative examined by the Secretary shall be consistent with the provisions relating to service on courts-martial specified in section 825(d) of title 10, United States Code (article 25(d) of the Uniform Code of Military Justice). The Secretary shall include in the report the Secretary’s evaluation of each alternative examined.

    (c) VIEWS OF CODE COMMITTEE- In preparing the report under subsection (a), the Secretary shall obtain the views of the members of the committee referred to in section 946 of such title (known as the ‘Code Committee’).

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

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

    (b) MATTERS TO BE INCLUDED- The Secretary shall include in the report the following:

      (1) A description of the basis for the selection of prisoners to be transferred, particularly in light of the fact that many of the prisoners transferred are minimum or medium security prisoners, who are considered to have the best chance for rehabilitation, and whether the transfer of those prisoners indicates a change in Department of Defense policy regarding the rehabilitation of military prisoners.

      (2) A comparison of the historical recidivism rates of prisoners released from the United States Disciplinary Barracks and the Federal Bureau of Prisons, together with a description of any plans of the Army to track the parole and recidivism rates of prisoners transferred to the Federal Bureau of Prisons and whether it has tracked those factors for previous transferees.

      (3) A description of the projected future flow of prisoners into the new United States Disciplinary Barracks being constructed at Fort Leavenworth, Kansas, and whether the Secretary of the Army plans to automatically send new prisoners to the Federal Bureau of Prisons without serving at the United States Disciplinary Barracks if that Barracks is at capacity and whether the Memorandum of Understanding between the Federal Bureau of Prisons and the Army covers that possibility.

      (4) A description of the cost of incarcerating a prisoner in the Federal Bureau of Prisons compared to the United States Disciplinary Barracks and the assessment of the Secretary as to the extent to which the transfer of prisoners to the Federal Bureau of Prisons by the Secretary of the Army is made in order to shift a budgetary burden.

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

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

    (a) REQUIREMENT FOR REVIEW- The Chief of the National Guard Bureau shall review the process used for allocating and distributing all categories of full-time support personnel among the States for the National Guard of the States.

    (b) PURPOSE OF REVIEW- The purpose of the review is to determine whether that allocation and distribution process provides for adequately meeting the full-time support personnel requirements of the National Guard in the case of those States that have fewer than 16 National Guard units categorized in readiness tiers I, II, and III.

    (c) MATTERS TO BE REVIEWED- The matters reviewed shall include the following:

      (1) The factors considered for the process of determining the distribution among the States of full-time support personnel, including the weights assigned to those factors.

      (2) The extent to which that process results in full-time support personnel levels for the units of the States described in subsection (b) that are at the levels necessary to optimize the preparedness of those units to meet the mission requirements applicable to those units.

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

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

Subtitle G--Other Matters

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

    (a) EARLY RETIREMENT AUTHORITY FOR ACTIVE FORCE MEMBERS- Section 4403(i) of the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking out ‘October 1, 1999’ and inserting in lieu thereof ‘October 1, 2001’.

    (b) SSB AND VSI- Sections 1174a(h) and 1175(d)(3) of title 10, United States Code, are amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘September 30, 2001’.

    (c) SELECTIVE EARLY RETIREMENT BOARDS- Section 638a(a) of such title is amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (d) TIME-IN-GRADE REQUIREMENT FOR RETENTION OF GRADE UPON VOLUNTARY RETIREMENT- Section 1370(a)(2)(A) of such title is amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (e) MINIMUM COMMISSIONED SERVICE FOR VOLUNTARY RETIREMENT AS AN OFFICER- Sections 3911(b), 6323(a)(2), and 8911(b) of such title are amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (f) TRAVEL, TRANSPORTATION, AND STORAGE BENEFITS- Sections 404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 406(g)(1)(C) of title 37, United States Code, and section 503(c) of the National Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 note) are amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (g) EDUCATIONAL LEAVE FOR PUBLIC AND COMMUNITY SERVICE- Section 4463(f) of the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘September 30, 2001’.

    (h) TRANSITIONAL HEALTH BENEFITS- Section 1145 of title 10, United States Code, is amended--

      (1) in subsections (a)(1) and (c)(1), by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’; and

      (2) in subsection (e), by striking out ‘during the five-year period beginning on October 1, 1994’ and inserting in lieu thereof ‘during the period beginning on October 1, 1994, and ending on September 30, 2001’.

    (i) TRANSITIONAL COMMISSARY AND EXCHANGE BENEFITS- Section 1146 of such title is amended--

      (1) by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’; and

      (2) by striking out ‘during the five-year period beginning on October 1, 1994’ and inserting in lieu thereof ‘during the period beginning on October 1, 1994, and ending on September 30, 2001’.

    (j) TRANSITIONAL USE OF MILITARY HOUSING- Section 1147(a) of such title is amended--

      (1) in paragraph (1), by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’; and

      (2) in paragraph (2), by striking out ‘during the five-year period beginning on October 1, 1994’ and inserting in lieu thereof ‘during the period beginning on October 1, 1994, and ending on September 30, 2001’.

    (k) CONTINUED ENROLLMENT OF DEPENDENTS IN DEFENSE DEPENDENTS’ EDUCATION SYSTEM- Section 1407(c)(1) of the Defense Dependents’ Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (l) FORCE REDUCTION TRANSITION PERIOD DEFINITION- Section 4411 of the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘September 30, 2001’.

    (m) TEMPORARY SPECIAL AUTHORITY FOR FORCE REDUCTION PERIOD RETIREMENTS- Section 4416(b)(1) of the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking out ‘October 1, 1999’ and inserting in lieu thereof ‘October 1, 2001’.

    (n) RETIRED PAY FOR NON-REGULAR SERVICE- (1) Section 12731(f) of title 10, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘September 30, 2001’.

    (2) Section 12731a of such title is amended in subsections (a)(1)(B) and (b) by striking out ‘October 1, 1999’ and inserting in lieu thereof ‘October 1, 2001’.

    (o) REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR RETENTION OF GRADE UPON VOLUNTARY RETIREMENT- Section 1370(d) of such title is amended by adding at the end the following new paragraph:

    ‘(5) The Secretary of Defense may authorize the Secretary of a military department to reduce the 3-year period required by paragraph (3)(A) to a period not less than 2 years in the case of retirements effective during the period beginning on the date of the enactment of this paragraph and ending on September 30, 2001. The number of reserve commissioned officers of an armed force in the same grade for whom a reduction is made during any fiscal year in the period of service-in-grade otherwise required under this paragraph may not exceed the number equal to 2 percent of the strength authorized for that fiscal year for reserve commissioned officers of that armed force in an active status in that grade.’.

    (p) AFFILIATION WITH GUARD AND RESERVE UNITS; WAIVER OF CERTAIN LIMITATIONS- Section 1150(a) of such title is amended by striking out ‘during the nine-year period beginning on October 1, 1990’ and inserting in lieu thereof ‘during the period beginning on October 1, 1990, and ending on September 30, 2001’.

    (q) RESERVE MONTGOMERY GI BILL- Section 16133(b)(1)(B) of such title is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘September 30, 2001’.

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

    (a) AUTHORITY- Section 702 of title 10, United States Code, is amended--

      (1) by designating the second sentence of subsection (b) as subsection (d);

      (2) by redesignating subsection (b) as subsection (c); and

      (3) by inserting after subsection (a) the following new subsection (b):

    ‘(b) INVOLUNTARY LEAVE WITHOUT PAY FOR SUSPENDED ACADEMY CADETS AND MIDSHIPMEN- (1) Under regulations prescribed under subsection (d), the Secretary concerned may place an academy cadet or midshipman on involuntary leave for any period during which the Superintendent of the Academy at which the cadet or midshipman is admitted has suspended the cadet or midshipman from duty at the Academy--

      ‘(A) pending separation from the Academy;

      ‘(B) pending return to the Academy to repeat an academic semester or year; or

      ‘(C) for other good cause.

    ‘(2) A cadet or midshipman placed on involuntary leave under paragraph (1) is not entitled to any pay under section 230(c) of title 37 for the period of the leave.

    ‘(3) Return of an academy cadet or midshipman to a pay status at the Academy concerned from involuntary leave status under paragraph (1) does not restore any entitlement of the cadet or midshipman to pay for the period of the involuntary leave.’.

    (b) DEFINITION- Such section is further amended--

      (1) in subsection (c) (as redesignated by subsection (a)(2)), by striking out ‘cadets at’ and all that follows through ‘Naval Academy,’ and inserting in lieu thereof ‘academy cadets or midshipmen’; and

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

    ‘(e) DEFINITION- In this section, the term ‘academy cadet or midshipman’ means--

      ‘(1) a cadet of the United States Military Academy;

      ‘(2) a midshipman of the United States Naval Academy;

      ‘(3) a cadet of the United States Air Force Academy; or

      ‘(4) a cadet of the United States Coast Guard Academy.’.

    (c) SUBSECTION HEADINGS- Such section is further amended--

      (1) in subsection (a), by inserting ‘GRADUATION LEAVE- ’ after ‘(a)’;

      (2) in subsection (c) (as redesignated by subsection (a)(2)), by inserting ‘INAPPLICABLE LEAVE PROVISIONS- ’ after ‘(c)’; and

      (3) in subsection (d) (as designated by subsection (a)(1)), by inserting ‘REGULATIONS- ’ after ‘(d)’.

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

    (a) PERIOD OF ELIGIBILITY- Subsection (a) of section 1175 of title 10, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(a)’;

      (2) by striking out ‘, for the period of time the member serves in a reserve component’; and

      (3) by adding at the end the following:

    ‘(2)(A) Except as provided in subparagraph (B), a financial incentive provided a member under this section shall be paid for the period equal to twice the number of years of service of the member, computed as provided in subsection (e)(5).

    ‘(B) If, before the expiration of the period otherwise applicable under subparagraph (A) to a member receiving a financial incentive under this section, the member is separated from a reserve component or is transferred to the Retired Reserve, the period for payment of a financial incentive to the member under this section shall terminate on the date of the separation or transfer unless--

      ‘(i) the separation or transfer is required by reason of the age or number of years of service of the member;

      ‘(ii) the separation or transfer is required by reason of the failure of selection for promotion or the medical disqualification of the member, except in a case in which the Secretary of Defense or the Secretary of Transportation determines that the basis for the separation or transfer is a result of a deliberate action taken by the member with the intent to avoid retention in the Ready Reserve or Standby Reserve; or

      ‘(iii) in the case of a separation, the member is separated from the reserve component for appointment or enlistment in or transfer to another reserve component of an armed force for service in the Ready Reserve or Standby Reserve of that armed force.’.

    (b) REPEAL OF SUPERSEDED PROVISION- Subsection (e)(1) of such section is amended by striking out the second sentence.

    (c) EFFECTIVE DATE- The amendments made by this section apply with respect to any person provided a voluntary separation incentive under section 1175 of title 10, United States Code (whether before, on, or after the date of the enactment of this Act).

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

    (a) MEMBERS OF THE ARMED FORCES- Paragraph (1) of section 1053(d) of title 10, United States Code, is amended to read as follows:

      ‘(1) The term ‘financial institution’ means a bank, savings and loan association, or similar institution or a credit union chartered by the United States or a State.’.

    (b) CIVILIAN PERSONNEL- Paragraph (1) of section 1594(d) of such title is amended to read as follows:

      ‘(1) The term ‘financial institution’ means a bank, savings and loan association, or similar institution or a credit union chartered by the United States or a State.’.

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

    (a) INCREASE IN MAXIMUM RATE FOR ACTIVE COMPONENT MONTGOMERY GI BILL SUPPLEMENT- Section 3015(d) of title 38, United States Code, is amended--

      (1) by inserting ‘, at the time the individual first becomes a member of the Armed Forces,’ after ‘Secretary of Defense, may’; and

      (2) by striking out ‘$400’ and all that follows through ‘that date’ and inserting in lieu thereof ‘$950 per month’.

    (b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect on October 1, 1998, and shall apply with respect to individuals who first become members of the Armed Forces on or after that date.

SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

    (a) SENSE OF CONGRESS- It is the sense of Congress that the Central Identification Laboratory, Hawaii, of the Department of the Army is an important element of the Department of Defense and is critical to the full accounting of members of the Armed Forces who have been classified as POW/MIAs or are otherwise unaccounted for.

    (b) REQUIRED STAFFING LEVEL- The Secretary of Defense shall provide sufficient personnel to fill all authorized personnel positions of the Central Identification Laboratory, Hawaii, Department of the Army. Those personnel shall be drawn from members of the Army, Navy, Air Force, and Marine Corps and from civilian personnel, as appropriate, considering the proportion of POW/MIAs from each service.

    (c) JOINT MANNING PLAN- The Secretary of Defense shall develop and implement, not later than March 31, 2000, a joint manning plan to ensure the appropriate participation of the four services in the staffing of the Central Identification Laboratory, Hawaii, as required by subsection (b).

    (d) LIMITATION ON REDUCTIONS- The Secretary of the Army may not carry out any personnel reductions (in authorized or assigned personnel) at the Central Identification Laboratory, Hawaii, until the joint manning plan required by subsection (c) is implemented.

SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

    (a) CONFERENCE ON PRACTICES CONCERNING MILITARY HONORS AT FUNERALS FOR VETERANS- (1) The Secretary of Defense, in consultation with the Secretary of Veterans Affairs, shall convene and preside over a conference, to be completed not later than December 31, 1998, for the purpose of determining means of improving and increasing the availability of military funeral honors for veterans. The Secretary of Veterans Affairs shall also participate in the conference.

    (2) The Secretaries shall invite and encourage the participation at the conference of appropriate representatives of veterans service organizations.

    (3) The conference shall perform the following:

      (A) Review current policies and practices of the military departments and the Department of Veterans Affairs relating to the provision of military funeral honors for veterans.

      (B) Consider alternative methods for providing military funeral honors for veterans and develop new strategies for providing those honors.

      (C) Determine what resources may be available outside the Department of Defense that could be used to provide military funeral honors for veterans.

      (D) Analyze the costs associated with providing military funeral honors for veterans, including the costs associated with using personnel and other resources for that purpose.

      (E) Assess trends in the rate of death of veterans.

      (F) Propose, consider, and determine means of improving and increasing the availability of military funeral honors for veterans.

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

    (b) HONOR GUARD DETAILS AT FUNERALS OF VETERANS- (1) Chapter 75 of title 10, United States Code, is amended by adding at the end the following new section:

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

    ‘(a) AVAILABILITY- The Secretary of a military department shall, upon request, provide an honor guard detail (or ensure that an honor guard detail is provided) for the funeral of any veteran that occurs after December 31, 1999.

    ‘(b) COMPOSITION OF HONOR GUARD DETAILS- The Secretary of each military department shall ensure that an honor guard detail for the funeral of a veteran consists of not less than three persons and (unless a bugler is part of the detail) has the capability to play a recorded version of Taps.

    ‘(c) PERSONS FORMING HONOR GUARDS- An honor guard detail may consist of members of the armed forces or members of veterans organizations or other organizations approved for purposes of this section under regulations prescribed by the Secretary of Defense. The Secretary of a military department may provide transportation, or reimbursement for transportation, and expenses for a person who participates in an honor guard detail under this section and is not a member of the armed forces or an employee of the United States.

    ‘(d) REGULATIONS- The Secretary of Defense shall by regulation establish a system for selection of units of the armed forces and other organizations to provide honor guard details. The system shall place an emphasis on balancing the funeral detail workload among the units and organizations providing honor guard details in an equitable manner as they are able to respond to requests for such details in terms of geographic proximity and available resources. The Secretary shall provide in such regulations that the armed force in which a veteran served shall not be considered to be a factor when selecting the military unit or other organization to provide an honor guard detail for the funeral of the veteran.

    ‘(e) ANNUAL REPORT- The Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report not later than January 31 of each year beginning with 2001 and ending with 2005 on the experience of the Department of Defense under this section. Each such report shall provide data on the number of funerals supported under this section, the cost for that support, shown by manpower and other cost factors, and the number and costs of funerals supported by each participating organization. The data in the report shall be presented in a standard format, regardless of military department or other organization.

    ‘(f) VETERAN DEFINED- In this section, the term ‘veteran’ has the meaning given that term in section 101(2) of title 38.’.

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

      ‘1491. Honor guard details at funerals of veterans.’.

    (c) TREATMENT OF PERFORMANCE OF HONOR GUARD FUNCTIONS BY RESERVES- (1) Chapter 1215 of title 10, United States Code, is amended by adding at the end the following new section:

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

    ‘Performance by a Reserve of honor guard functions at the funeral of a veteran may not be considered to be a period of drill or training otherwise required.’.

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

      ‘12552. Funeral honor guard functions: prohibition of treatment as drill or training.’.

    (d) REPEAL OF LIMITATION ON AVAILABILITY OF FUNDS FOR HONOR GUARD FUNCTIONS BY NATIONAL GUARD- Section 114 of title 32, United States Code, is amended--

      (1) by striking out ‘(a)’; and

      (2) by striking out subsection (b).

    (e) VETERANS SERVICE ORGANIZATION DEFINED- In this section, the term ‘veterans service organization’ means any organization recognized by the Secretary of Veterans Affairs under section 5902 of title 38, United States Code.

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

    Section 1303(c) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1295(c)), is amended--

      (1) by inserting ‘(1)’ after ‘(c)’;

      (2) by striking out ‘may’ and inserting in lieu thereof ‘shall’; and

      (3) by adding at the end the following:

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

    ‘(3) The Secretary of the Navy shall carry out paragraphs (1) and (2) in coordination with the Secretary.’.

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

    (a) REPEAL- Section 974 of title 10, United States Code, is repealed.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 49 of such title is amended by striking out the item relating to section 974.

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

    (a) ENTITLEMENT NOT CONDITIONED ON FORFEITURE OF SPOUSAL COMPENSATION- Subsection (d) of section 1059 of title 10, United States Code, is amended--

      (1) in paragraph (1)--

        (A) by striking out ‘(except as otherwise provided in this subsection)’; and

        (B) by inserting before the period the following: ‘, including an amount (determined under subsection (f)(2)) for each, if any, dependent child of the individual described in subsection (b) who resides in the same household as that spouse or former spouse’;

      (2) in paragraph (2)--

        (A) by striking out ‘(but for subsection (g)) would be eligible’ and inserting in lieu thereof ‘is or, but for subsection (g), would be eligible’; and

        (B) by striking out ‘such compensation’ and inserting in lieu thereof ‘compensation under this section’; and

      (3) in paragraph (4), by striking out ‘For purposes of paragraphs (2) and (3)’ and inserting in lieu thereof ‘For purposes of this subsection’.

    (b) AMOUNT OF PAYMENT- Subsection (f)(2) of such section is amended by striking out ‘has custody of a dependent child or children of the member’ and inserting in lieu thereof ‘has custody of a dependent child of the member who resides in the same household as that spouse or former spouse’.

    (c) PROSPECTIVE APPLICABILITY- No benefits shall accrue by reason of the amendments made by this section for any month that begins before the date of the enactment of this Act.

SEC. 571. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT IN THE ARMED FORCES.

    (a) PROGRAM REQUIRED- The Secretary of Defense shall establish a pilot program to assess whether the Armed Forces could better meet recruiting requirements by treating GED recipients and home school diploma recipients as having graduated from high school with a high school diploma for the purpose of determining the eligibility of those persons to enlist in the Armed Forces. The Secretary of each military department shall administer the pilot program for the Armed Force or armed forces under the jurisdiction of that Secretary.

    (b) PERSONS ELIGIBLE UNDER THE PILOT PROGRAM AS HIGH SCHOOL GRADUATES- Under the pilot program, a person shall be treated as having graduated from high school with a high school diploma for the purpose described in subsection (a) if--

      (1) the person has completed a general education development program while participating in the National Guard Challenge Program under section 509 of title 32, United States Code, and is a GED recipient; or

      (2) the person is a home school diploma recipient and provides a transcript demonstrating completion of high school to the military department involved under the pilot program.

    (c) GED AND HOME SCHOOL DIPLOMA RECIPIENTS- For the purposes of this section--

      (1) a person is a GED recipient if the person, after completing a general education development program, has obtained certification of high school equivalency by meeting State requirements and passing a State approved exam that is administered for the purpose of providing an appraisal of the person’s achievement or performance in the broad subject matter areas usually required for high school graduates; and

      (2) a person is a home school diploma recipient if the person has received a diploma for completing a program of education through the high school level at a home school, without regard to whether the home school is treated as a private school under the law of the State in which located.

    (d) ANNUAL LIMIT ON NUMBER- Not more than 1,250 GED recipients and home school diploma recipients enlisted by an armed force during a fiscal year may be treated under the pilot program as having graduated from high school with a high school diploma.

    (e) DURATION OF PILOT PROGRAM- The pilot program shall be in effect during the period beginning on October 1, 1998, and ending on September 30, 2003.

    (f) REPORT- Not later than February 1, 2004, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the pilot program. The report shall include the following, set forth separately for GED recipients and home school diploma recipients:

      (1) The assessment of the Secretary of Defense, and any assessment of any of the Secretaries of the military departments, regarding the value of, and any necessity for, authority to treat GED recipients and home school diploma recipients as having graduated from high school with a high school diploma for the purpose of determining the eligibility of those persons to enlist in the Armed Forces.

      (2) A comparison (shown by armed force and by each fiscal year of the pilot program) of the performance of the persons who enlisted during the fiscal year as GED or home school diploma recipients treated under the pilot program as having graduated from high school with a high school diploma with the performance of the persons who enlisted in that armed force during the same fiscal year after having graduated from high school with a high school diploma, with respect to the following:

        (A) Attrition.

        (B) Discipline.

        (C) Adaptability to military life.

        (D) Aptitude for mastering the skills necessary for technical specialties.

        (E) Reenlistment rates.

    (g) STATE DEFINED- For purposes of this section, the term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and the territories of the United States.

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

    (a) SENSE OF CONGRESS- It is the sense of Congress that--

      (1) the New Parent Support Program that was begun as a pilot program of the Marine Corps at Camp Pendleton, California, has been an effective tool in curbing family violence within the military community;

      (2) such program is a model for future New Parent Support Programs throughout the Marine Corps, Navy, Army, and Air Force; and

      (3) in light of the pressures and strains placed upon military families and the benefits of the New Parent Support Program in helping ‘at-risk’ families, the Department of Defense should seek ways to ensure that in future fiscal years funds are made available for New Parent Support Programs for the Army, Navy, Air Force, and Marine Corps in amounts sufficient to meet requirements for those programs.

    (b) REPORT- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on the New Parent Support Program of the Department of Defense. The Secretary shall include in the report the following:

      (1) A description of how the Army, Navy, Air Force, and Marine Corps are each implementing a New Parent Support Program and how each such program is organized.

      (2) A description of how the implementation of programs for the Army, Navy, and Air Force compare to the fully implemented Marine Corps program.

      (3) The number of installations that the four Armed Forces have each scheduled to receive support for the New Parent Support Program.

      (4) The number of installations delayed in providing the program.

      (5) The number of programs terminated.

      (6) The number of programs with reduced support.

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

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

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

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

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

    It is the sense of the House of Representatives that civilians in the military chain of command (as provided in section 162(b) of title 10, United States Code) should (in the same manner as is required by law of commanding officers and others in authority in the Armed Forces)--

      (1) show in themselves a good example of virtue, honor, and patriotism and subordinate themselves to those ideals;

      (2) be vigilant in inspecting the conduct of all persons who are placed under their command;

      (3) guard against and put an end to all dissolute and immoral practices and correct, according to the laws and regulations of the Armed Forces, all persons who are guilty of them; and

      (4) take all necessary and proper measures, under the laws, regulations, and customs of the Armed Forces, to promote and safeguard the morale, the physical well-being, and the general welfare of the officers and enlisted persons under their command or charge.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

      Sec.601.Increase in basic pay for fiscal year 1999.

      Sec.602.Rate of pay for cadets and midshipmen at the service academies.

      Sec.603.Basic allowance for housing outside the United States.

      Sec.604.Basic allowance for subsistence for reserves.

Subtitle B--Bonuses and Special and Incentive Pays

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

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

      Sec.613.Three-month extension of authorities relating to payment of other bonuses and special pays.

      Sec.614.Increased hazardous duty pay for aerial flight crewmembers in certain pay grades.

      Sec.615.Aviation career incentive pay and aviation officer retention bonus.

      Sec.616.Diving duty special pay for divers having diving duty as a nonprimary duty.

      Sec.617.Hardship duty pay.

      Sec.618.Selective reenlistment bonus eligibility for Reserve members performing active Guard and Reserve duty.

      Sec.619.Repeal of 10 percent limitation on certain selective reenlistment bonuses.

      Sec.620.Increase in maximum amount authorized for Army enlistment bonus.

      Sec.621.Equitable treatment of Reserves eligible for special pay for duty subject to hostile fire or imminent danger.

      Sec.622.Retention incentives initiative for critically short military occupational specialties.

Subtitle C--Travel and Transportation Allowances

      Sec.631.Payments for movements of household goods arranged by members.

      Sec.632.Exception to maximum weight allowance for baggage and household effects.

      Sec.633.Travel and transportation allowances for travel performed by members in connection with rest and recuperative leave from overseas stations.

      Sec.634.Storage of baggage of certain dependents.

      Sec.635.Commercial travel of Reserves at Federal supply schedule rates for attendance at inactive-duty training assemblies.

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

      Sec.641.Paid-up coverage under Survivor Benefit Plan.

      Sec.642.Survivor Benefit Plan open enrollment period.

      Sec.643.Effective date of court-required former spouse Survivor Benefit Plan coverage effectuated through elections and deemed elections.

      Sec.644.Presentation of United States flag to members of the Armed Forces upon retirement.

      Sec.645.Recovery, care, and disposition of remains of medically retired member who dies during hospitalization that begins while on active duty.

      Sec.646.Revision to computation of retired pay for certain members.

      Sec.647.Elimination of backlog of unpaid retired pay.

Subtitle E--Other Matters

      Sec.651.Definition of possessions of the United States for pay and allowances purposes.

      Sec.652.Accounting of advance payments.

      Sec.653.Reimbursement of rental vehicle costs when motor vehicle transported at Government expense is late.

      Sec.654.Education loan repayment program for health professions officers serving in Selected Reserve.

      Sec.655.Federal employees’ compensation coverage for students participating in certain officer candidate programs.

      Sec.656.Relationship of enlistment bonuses to eligibility to receive Army college fund supplement under Montgomery GI Bill Educational Assistance Program.

      Sec.657.Authority to provide financial assistance for education of certain defense dependents overseas.

      Sec.658.Clarifications concerning payments to certain persons captured or interned by North Vietnam.

Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1999.

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

    (b) INCREASE IN BASIC PAY- Effective on January 1, 1999, the rates of basic pay of members of the uniformed services shall be increased by the greater of--

      (1) 3.6 percent; or

      (2) the percentage increase determined under subsection (c) of section 1009 of title 37, United States Code, by which the monthly basic pay of members would be adjusted under subsection (a) of that section on that date in the absence of subsection (a) of this section.

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

    (a) INCREASED RATE- Section 203(c) of title 37, United States Code, is amended by striking out ‘$558.04’ and inserting in lieu thereof ‘$600.00’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on January 1, 1999.

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

    (a) PAYMENT OF CERTAIN EXPENSES RELATED TO OVERSEAS HOUSING- Section 403(c) of title 37, United States Code, is amended by adding at the end the following new paragraph:

    ‘(3)(A) In the case of a member of the uniformed services authorized to receive an allowance under paragraph (1), the Secretary concerned may make a lump-sum payment to the member for required deposits and advance rent, and for expenses relating thereto, that are--

      ‘(i) incurred by the member in occupying private housing outside of the United States; and

      ‘(ii) authorized or approved under regulations prescribed by the Secretary concerned.

    ‘(B) Expenses for which a member may be reimbursed under this paragraph may include losses relating to housing that are sustained by the member as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located.

    ‘(C) The Secretary concerned shall recoup the full amount of any deposit or advance rent payments made by the Secretary under subparagraph (A), including any gain resulting from currency fluctuations between the time of payment and the time of recoupment.’.

    (b) CONFORMING AMENDMENT- Section 405 of title 37, United States Code, is amended by striking out subsection (c).

    (c) RETROACTIVE APPLICATION- The reimbursement authority provided by section 403(c)(3)(B) of title 37, United States Code, as added by subsection (a), applies with respect to losses relating to housing that are sustained, on or after July 1, 1997, by a member of the uniformed services as a result of fluctuations in the relative value of the currencies of the United States and the foreign country in which the housing is located.

SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

    (a) IN GENERAL- Section 402 of title 37, United States Code, is amended--

      (1) by redesignating subsections (e) and (f) as subsections (f) and (g), respectively; and

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

    ‘(e) SPECIAL RULE FOR CERTAIN ENLISTED RESERVE MEMBERS- Unless entitled to basic pay under section 204 of this title, an enlisted member of a reserve component may receive, at the discretion of the Secretary concerned, rations in kind, or a part thereof, when the member’s instruction or duty periods, as described in section 206(a) of this title, total at least 8 hours in a calendar day. The Secretary concerned may provide an enlisted member who could be provided rations in kind under the preceding sentence with a commutation when rations in kind are not available.’.

    (b) APPLICATION DURING TRANSITIONAL PERIOD- Section 602(d)(1) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) is amended by adding at the end the following new subparagraph:

        ‘(D) SPECIAL RULE FOR CERTAIN ENLISTED RESERVE MEMBERS- Unless entitled to basic pay under section 204 of title 37, United States Code, an enlisted member of a reserve component (as defined in section 101(24) of such title) may receive, at the discretion of the Secretary concerned (as defined in section 101(5) of such title), rations in kind, or a part thereof, when the member’s instruction or duty periods (as described in section 206(a) of such title) total at least 8 hours in a calendar day. The Secretary concerned may provide an enlisted member who could be provided rations in kind under the preceding sentence with a commutation when rations in kind are not available.’.

Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES- Section 302g(f) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (b) SELECTED RESERVE REENLISTMENT BONUS- Section 308b(f) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (c) SELECTED RESERVE ENLISTMENT BONUS- Section 308c(e) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (d) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN HIGH PRIORITY UNITS- Section 308d(c) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (e) SELECTED RESERVE AFFILIATION BONUS- Section 308e(e) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (f) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS- Section 308h(g) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (g) PRIOR SERVICE ENLISTMENT BONUS- Section 308i(f) of title 37, United States Code, as redesignated by section 622, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (h) REPAYMENT OF EDUCATION LOANS FOR CERTAIN HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE- Section 16302(d) of title 10, United States Code, is amended by striking out ‘October 1, 1999’ and inserting in lieu thereof ‘January 1, 2000’.

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

    (a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM- Section 2130a(a)(1) of title 10, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (b) ACCESSION BONUS FOR REGISTERED NURSES- Section 302d(a)(1) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS- Section 302e(a)(1) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

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

    (a) AVIATION OFFICER RETENTION BONUS- Section 301b(a) of title 37, United States Code, is amended by striking out ‘September 30, 1999,’ and inserting in lieu thereof ‘December 31, 1999,’.

    (b) REENLISTMENT BONUS FOR ACTIVE MEMBERS- Section 308(g) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (c) ENLISTMENT BONUSES FOR MEMBERS WITH CRITICAL SKILLS- Sections 308a(c) and 308f(c) of title 37, United States Code, are each amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (d) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS EXTENDING PERIOD OF ACTIVE SERVICE- Section 312(e) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (e) NUCLEAR CAREER ACCESSION BONUS- Section 312b(c) of title 37, United States Code, is amended by striking out ‘September 30, 1999’ and inserting in lieu thereof ‘December 31, 1999’.

    (f) NUCLEAR CAREER ANNUAL INCENTIVE BONUS- Section 312c(d) of title 37, United States Code, is amended by striking out ‘October 1, 1999’ and inserting in lieu thereof ‘October 1, 1998, and the 15-month period beginning on that date and ending on December 31, 1999’.

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

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

‘E-9

--240

E-8

--240

E-7

--240

E-6

--215

E-5

--190

E-4

--165’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on October 1, 1998, and shall apply with respect to months beginning on or after that date.

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

    (a) DEFINITION OF AVIATION SERVICE- (1) Section 301a(a)(6) of title 37, United States Code, is amended--

      (A) by redesignating subparagraphs (A), (B), and (C) as subparagraphs (B), (C), and (D), respectively; and

      (B) by inserting before subparagraph (B) (as so redesignated) the following new subparagraph:

      ‘(A) The term ‘aviation service’ means service performed by an officer (except a flight surgeon or other medical officer) while holding an aeronautical rating or designation or while in training to receive an aeronautical rating or designation.’.

    (2) Section 301b(j) of such title is amended by striking out paragraph (1) and inserting in lieu thereof the following new paragraph:

      ‘(1) The term ‘aviation service’ means service performed by an officer (except a flight surgeon or other medical officer) while holding an aeronautical rating or designation or while in training to receive an aeronautical rating or designation.’.

    (b) AMOUNT OF INCENTIVE PAY- Subsection (b) of section 301a of such title is amended to read as follows:

    ‘(b)(1) A member who satisfies the requirements described in subsection (a) is entitled to monthly incentive pay as follows:

‘Years of aviation service (including

Monthly

flight training) as an officer:

rate

2 or less

--$125

Over 2

--$156

Over 3

--$188

Over 4

--$206

Over 6

--$650

Over 14

--$840

Over 22

--$585

Over 23

--$495

Over 24

--$385

Over 25

--$250

    ‘(2) An officer in a pay grade above O-6 is entitled, until the officer completes 25 years of aviation service, to be paid at the rates set forth in the table in paragraph (1), except that--

      ‘(A) an officer in pay grade O-7 may not be paid at a rate greater than $200 a month; and

      ‘(B) an officer in pay grade O-8 or above may not be paid at a rate greater than $206 a month.

    ‘(3) For a warrant officer with over 22, 23, 24, or 25 years of aviation service who is qualified under subsection (a), the rate prescribed in the table in paragraph (1) for officers with over 14 years of aviation service shall continue to apply to the warrant officer.’.

    (c) REFERENCES TO AVIATION SERVICE- (1) Section 301a of such title is further amended--

      (A) in subsection (a)(4)--

        (i) by striking out ‘22 years of the officer’s service as an officer’ and inserting in lieu thereof ‘22 years of aviation service of the officer’; and

        (ii) by striking out ‘25 years of service as an officer (as computed under section 205 of this title)’ and inserting in lieu thereof ‘25 years of aviation service’; and

      (B) in subsection (d), by striking out ‘subsection (b)(1) or (2), as the case may be, for the performance of that duty by a member of corresponding years of aviation or officer service, as appropriate,’ and inserting in lieu thereof ‘subsection (b) for the performance of that duty by a member with corresponding years of aviation service’.

    (2) Section 301b(b)(5) of such title is amended by striking out ‘active duty’ and inserting in lieu thereof ‘aviation service’.

    (d) CONFORMING AMENDMENT- Section 615 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1787) is repealed.

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

    (a) ELIGIBILITY FOR MAINTAINING PROFICIENCY- Section 304(a)(3) of title 37, United States Code, is amended to read as follows:

      ‘(3) either--

        ‘(A) actually performs diving duty while serving in an assignment for which diving is a primary duty; or

        ‘(B) meets the requirements to maintain proficiency as described in paragraph (2) while serving in an assignment that includes diving duty other than as a primary duty.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on October 1, 1998, and shall apply with respect to months beginning on or after that date.

SEC. 617. HARDSHIP DUTY PAY.

    (a) DUTY FOR WHICH PAY AUTHORIZED- Section 305 of title 37, United States Code, is amended--

      (1) in subsection (a), by striking out ‘on duty at a location’ and all that follows through the period at the end of the subsection and inserting in lieu thereof ‘performing duty in the United States or outside the United States that is designated by the Secretary of Defense as hardship duty.’;

      (2) by striking out subsections (b) and (c);

      (3) in subsection (d), by striking out ‘hardship duty location pay’ and inserting in lieu thereof ‘hardship duty pay’; and

      (4) by redesignating subsection (d) as subsection (b).

    (b) CONFORMING AMENDMENT- Section 907(d) of such title is amended by striking out ‘duty at a hardship duty location’ and inserting in lieu thereof ‘hardship duty’.

    (c) CLERICAL AMENDMENTS- (1) The heading for section 305 of such title is amended to read as follows:

‘Sec. 305. Special pay: hardship duty pay’.

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

      ‘305. Special pay: hardship duty pay.’.

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

    Section 308(a)(1)(D) of title 37, United States Code, is amended to read as follows:

      ‘(D) reenlists or voluntarily extends the member’s enlistment for a period of at least three years--

        ‘(i) in a regular component of the service concerned; or

        ‘(ii) in a reserve component of the service concerned, if the member is performing active Guard and Reserve duty (as defined in section 101(d)(6) of title 10).’.

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

    Section 308(b) of title 37, United States Code, is amended--

      (1) by striking out paragraph (2); and

      (2) by striking out ‘(1)’ after ‘(b)’.

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

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

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

    Section 310(b) of title 37, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

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

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

SEC. 622. RETENTION INCENTIVES INITIATIVE FOR CRITICALLY SHORT MILITARY OCCUPATIONAL SPECIALTIES.

    (a) REQUIREMENT FOR NEW INCENTIVES- The Secretary of Defense shall establish and provide for members of the Armed Forces qualified in critically short military occupational specialties a series of new incentives that the Secretary considers potentially effective for increasing the rates at which those members are retained in the Armed Forces for service in such specialties.

    (b) CRITICALLY SHORT MILITARY OCCUPATIONAL SPECIALTIES- For the purposes of this section, a military occupational specialty is a critically short military occupational specialty for an Armed Force if the number of members retained in that Armed Force in fiscal year 1998 for service in that specialty is less than 50 percent of the number of members of that Armed Force that were projected to be retained in that Armed Force for service in the specialty by the Secretary of the military department concerned as of October 1, 1997.

    (c) INCENTIVES- It is the sense of Congress that, among the new incentives established and provided under this section, the Secretary of Defense should include the following incentives:

      (1) Family support and leave allowances.

      (2) Increased special reenlistment or retention bonuses.

      (3) Repayment of educational loans.

      (4) Priority of selection for assignment to preferred permanent duty station or for extension at permanent duty station.

      (5) Modified leave policies.

      (6) Special consideration for Government housing or additional housing allowances.

    (d) RELATIONSHIP TO OTHER INCENTIVES- Incentives provided under this section are in addition to any special pay or other benefit that is authorized under any other provision of law.

    (e) REPORTS- (1) Not later than December 1, 1998, the Secretary of Defense shall submit to the congressional defense committees a report that identifies, for each of the Armed Forces, the critically short military occupational specialties to which incentives under this section are to apply.

    (2) Not later than April 15, 1999, the Secretary of Defense shall submit to the congressional defense committees a report that specifies, for each of the Armed Forces, the incentives that are to be provided under this section.

Subtitle C--Travel and Transportation Allowances

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

    (a) MONETARY ALLOWANCE AUTHORIZED- Subsection (b)(1) of section 406 of title 37, United States Code, is amended--

      (1) in subparagraph (A)--

        (A) by striking out ‘, or reimbursement therefor,’; and

        (B) by inserting after the second sentence the following new sentence: ‘Alternatively, the member may be paid reimbursement or a monetary allowance under subparagraph (F).’; and

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

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

    (b) REPEAL OF SUPERSEDED PROVISION- (1) Such section is further amended--

      (A) by striking out subsection (j); and

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

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

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

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

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

    (a) PROVISION OF TRANSPORTATION- Section 411c of title 37, United States Code, is amended by striking out subsection (b) and inserting in lieu thereof the following new subsection:

    ‘(b) When the transportation authorized by subsection (a) is provided by the Secretary concerned, the Secretary may use Government or commercial carriers. The Secretary concerned may limit the amount of payments made to members under subsection (a).’.

    (b) CLERICAL AMENDMENTS- (1) The heading of such section is amended to read as follows:

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

    (2) The item relating to such section in the table of sections at the beginning of chapter 7 of such title is amended to read as follows:

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

SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

    Section 430(b) of title 37, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

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

    ‘(2) At the option of the member, in lieu of the transportation of baggage of a dependent child under paragraph (1) from the dependent’s school in the continental United States, the Secretary concerned may pay or reimburse the member for costs incurred to store the baggage at or in the vicinity of the school during the dependent’s annual trip between the school and the member’s duty station. The amount of the payment or reimbursement may not exceed the cost that the Government would incur to transport the baggage.’.

SEC. 635. COMMERCIAL TRAVEL OF RESERVES AT FEDERAL SUPPLY SCHEDULE RATES FOR ATTENDANCE AT INACTIVE-DUTY TRAINING ASSEMBLIES.

    (a) AUTHORITY- Chapter 1217 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 12603. Attendance at inactive-duty training assemblies: commercial travel at Federal supply schedule rates

    ‘(a) FEDERAL SUPPLY SCHEDULE TRAVEL- Commercial travel under Federal supply schedules is authorized for the travel of a Reserve to the location of inactive duty training to be performed by the Reserve and from that location upon completion of the training.

    ‘(b) REGULATIONS- The Secretary of Defense shall prescribe in regulations such requirements, conditions, and restrictions for travel under the authority of subsection (a) as the Secretary considers appropriate. The regulations shall include policies and procedures for preventing abuses of that travel authority.

    ‘(c) REIMBURSEMENT NOT AUTHORIZED- A Reserve is not entitled to Government reimbursement for the cost of travel authorized under subsection (a).

    ‘(d) TREATMENT OF TRANSPORTATION AS USE BY MILITARY DEPARTMENTS- For the purposes of section 201(a) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481(a)), travel authorized under subsection (a) shall be treated as transportation for the use of a military department.’.

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

      ‘12603. Attendance at inactive-duty training assemblies: commercial travel at Federal supply schedule rates.’.

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

SEC. 641. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(j) COVERAGE PAID UP AT 30 YEARS AND AGE 70- Effective October 1, 2008, no reduction may be made under this section in the retired pay of a participant in the Plan for any month after the later of--

      ‘(1) the 360th month for which the participant’s retired pay is reduced under this section; and

      ‘(2) the month during which the participant attains 70 years of age.’.

SEC. 642. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

    (a) PERSONS NOT CURRENTLY PARTICIPATING IN SURVIVOR BENEFIT PLAN-

      (1) ELECTION OF SBP COVERAGE- An eligible retired or former member may elect to participate in the Survivor Benefit Plan during the open enrollment period specified in subsection (d).

      (2) ELECTION OF SUPPLEMENTAL ANNUITY COVERAGE- An eligible retired or former member who elects under paragraph (1) to participate in the Survivor Benefit Plan may also elect during the open enrollment period to participate in the Supplemental Survivor Benefit Plan.

      (3) ELIGIBLE RETIRED OR FORMER MEMBER- For purposes of paragraphs (1) and (2), an eligible retired or former member is a member or former member of the uniformed services who on the day before the first day of the open enrollment period is not a participant in the Survivor Benefit Plan and--

        (A) is entitled to retired pay; or

        (B) would be entitled to retired pay under chapter 1223 of title 10, United States Code (or chapter 67 of such title as in effect before October 5, 1994), but for the fact that such member or former member is under 60 years of age.

      (4) STATUS UNDER SBP OF PERSONS MAKING ELECTIONS-

        (A) STANDARD ANNUITY- A person making an election under paragraph (1) by reason of eligibility under paragraph (3)(A) shall be treated for all purposes as providing a standard annuity under the Survivor Benefit Plan.

        (B) RESERVE-COMPONENT ANNUITY- A person making an election under paragraph (1) by reason of eligibility under paragraph (3)(B) shall be treated for all purposes as providing a reserve-component annuity under the Survivor Benefit Plan.

    (b) MANNER OF MAKING ELECTIONS-

      (1) IN GENERAL- An election under this section must be made in writing, signed by the person making the election, and received by the Secretary concerned before the end of the open enrollment period. Except as provided in paragraph (2), any such election shall be made subject to the same conditions, and with the same opportunities for designation of beneficiaries and specification of base amount, that apply under the Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the case may be. A person making an election under subsection (a) to provide a reserve-component annuity shall make a designation described in section 1448(e) of title 10, United States Code.

      (2) ELECTION MUST BE VOLUNTARY- An election under this section is not effective unless the person making the election declares the election to be voluntary. An election to participate in the Survivor Benefit Plan under this section may not be required by any court. An election to participate or not to participate in the Survivor Benefit Plan is not subject to the concurrence of a spouse or former spouse of the person.

    (c) EFFECTIVE DATE FOR ELECTIONS- Any such election shall be effective as of the first day of the first calendar month following the month in which the election is received by the Secretary concerned.

    (d) OPEN ENROLLMENT PERIOD DEFINED- The open enrollment period is the 1-year period beginning on March 1, 1999.

    (e) EFFECT OF DEATH OF PERSON MAKING ELECTION WITHIN TWO YEARS OF MAKING ELECTION- If a person making an election under this section dies before the end of the 2-year period beginning on the effective date of the election, the election is void and the amount of any reduction in retired pay of the person that is attributable to the election shall be paid in a lump sum to the person who would have been the deceased person’s beneficiary under the voided election if the deceased person had died after the end of such 2-year period.

    (f) APPLICABILITY OF CERTAIN PROVISIONS OF LAW- The provisions of sections 1449, 1453, and 1454 of title 10, United States Code, are applicable to a person making an election, and to an election, under this section in the same manner as if the election were made under the Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the case may be.

    (g) PREMIUMS FOR OPEN ENROLLMENT ELECTION-

      (1) PREMIUMS TO BE CHARGED- The Secretary of Defense shall prescribe in regulations premiums which a person electing under this section shall be required to pay for participating in the Survivor Benefit Plan pursuant to the election. The total amount of the premiums to be paid by a person under the regulations shall be equal to the sum of--

        (A) the total amount by which the retired pay of the person would have been reduced before the effective date of the election if the person had elected to participate in the Survivor Benefit Plan (for the same base amount specified in the election) at the first opportunity that was afforded the member to participate under chapter 73 of title 10, United States Code;

        (B) interest on the amounts by which the retired pay of the person would have been so reduced, computed from the dates on which the retired pay would have been so reduced at such rate or rates and according to such methodology as the Secretary of Defense determines reasonable; and

        (C) any additional amount that the Secretary determines necessary to protect the actuarial soundness of the Department of Defense Military Retirement Fund against any increased risk for the fund that is associated with the election.

      (2) PREMIUMS TO BE CREDITED TO RETIREMENT FUND- Premiums paid under the regulations shall be credited to the Department of Defense Military Retirement Fund.

    (h) DEFINITIONS- In this section:

      (1) The term ‘Survivor Benefit Plan’ means the program established under subchapter II of chapter 73 of title 10, United States Code.

      (2) The term ‘Supplemental Survivor Benefit Plan’ means the program established under subchapter III of chapter 73 of title 10, United States Code.

      (3) The term ‘retired pay’ includes retainer pay paid under section 6330 of title 10, United States Code.

      (4) The terms ‘uniformed services’ and ‘Secretary concerned’ have the meanings given those terms in section 101 of title 37, United States Code.

      (5) The term ‘Department of Defense Military Retirement Fund’ means the Department of Defense Military Retirement Fund established under section 1461(a) of title 10, United States Code.

SEC. 643. EFFECTIVE DATE OF COURT-REQUIRED FORMER SPOUSE SURVIVOR BENEFIT PLAN COVERAGE EFFECTUATED THROUGH ELECTIONS AND DEEMED ELECTIONS.

    (a) ELIMINATION OF DISPARITY IN EFFECTIVE DATE PROVISIONS- Section 1448(b)(3) of title 10, United States Code, is amended--

      (1) in subparagraph (C)--

        (A) by striking out the second sentence; and

        (B) by striking out ‘EFFECTIVE DATE,’ in the heading; and

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

        ‘(E) EFFECTIVE DATE OF ELECTION- An election under this paragraph is effective as of--

          ‘(i) the first day of the first month following the month in which the election is received by the Secretary concerned; or

          ‘(ii) in the case of a person required (as described in section 1450(f)(3)(B) of this title) to make the election by reason of a court order or filing the date of which is on or after the date of the enactment of the subparagraph, the first day of the first month which begins after the date of that court order or filing.’.

    (b) CONFORMITY BY CROSS REFERENCE- Section 1450(f)(3)(D) of such title is amended by striking out ‘the first day of the first month which begins after the date of the court order or filing involved’ and inserting in lieu thereof ‘the day referred to in section 1448(b)(3)(E)(ii) of this title’.

SEC. 644. PRESENTATION OF UNITED STATES FLAG TO MEMBERS OF THE ARMED FORCES UPON RETIREMENT.

    (a) ARMY- (1) Chapter 353 of title 10, United States Code, is amended by inserting after the table of sections the following new section:

‘Sec. 3681. Presentation of United States flag upon retirement

    ‘(a) PRESENTATION OF FLAG- Upon the release of a member of the Army from active duty for retirement, the Secretary of the Army shall present a United States flag to the member.

    ‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED- A member is not eligible for a presentation of a flag under subsection (a) if the member has previously been presented a flag under this section or section 6141 or 8681 of this title or section 516 of title 14.

    ‘(c) NO COST TO RECIPIENT- The presentation of a flag under this section shall be at no cost to the recipient.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting before the item relating to section 3684 the following new item:

      ‘3681. Presentation of United States flag upon retirement.’.

    (b) NAVY AND MARINE CORPS- (1) Chapter 561 of title 10, United States Code, is amended by inserting after the table of sections the following new section:

‘Sec. 6141. Presentation of United States flag upon retirement

    ‘(a) PRESENTATION OF FLAG- Upon the release of a member of the Navy or Marine Corps from active duty for retirement or transfer to the Fleet Reserve or the Fleet Marine Corps Reserve, the Secretary of the Navy shall present a United States flag to the member.

    ‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED- A member is not eligible for a presentation of a flag under subsection (a) if the member has previously been presented a flag under this section or section 3681 or 8681 of this title or section 516 of title 14.

    ‘(c) NO COST TO RECIPIENT- The presentation of a flag under this section shall be at no cost to the recipient.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting before the item relating to section 6151 the following new item:

      ‘6141. Presentation of United States flag upon retirement.’.

    (c) AIR FORCE- (1) Chapter 853 of title 10, United States Code, is amended by inserting after the table of sections the following new section:

‘Sec. 8681. Presentation of United States flag upon retirement

    ‘(a) PRESENTATION OF FLAG- Upon the release of a member of the Air Force from active duty for retirement, the Secretary of the Air Force shall present a United States flag to the member.

    ‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED- A member is not eligible for a presentation of a flag under subsection (a) if the member has previously been presented a flag under this section or section 3681 or 6141 of this title or section 516 of title 14.

    ‘(c) NO COST TO RECIPIENT- The presentation of a flag under this section shall be at no cost to the recipient.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting before the item relating to section 8684 the following new item:

      ‘8681. Presentation of United States flag upon retirement.’.

    (d) COAST GUARD- (1) Chapter 13 of title 14, United States Code, is amended by adding at the end the following new section:

‘Sec. 516. Presentation of United States flag upon retirement

    ‘(a) PRESENTATION OF FLAG- Upon the release of a member of the Coast Guard from active duty for retirement, the Secretary of Transportation shall present a United States flag to the member.

    ‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED- A member is not eligible for a presentation of a flag under subsection (a) if the member has previously been presented a flag under this section or section 3681, 6141, and 8681 of title 10.

    ‘(c) NO COST TO RECIPIENT- The presentation of a flag under his section shall be at no cost to the recipient.’.

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

      ‘516. Presentation of United States flag upon retirement.’.

    (e) EFFECTIVE DATE- Sections 3681, 6141, and 8681 of title 10, United States Code (as added by this section), and section 516 of title 14, United States Code (as added by subsection (d)), shall apply with respect to releases from active duty described in those sections on or after October 1, 1998.

SEC. 645. RECOVERY, CARE, AND DISPOSITION OF REMAINS OF MEDICALLY RETIRED MEMBER WHO DIES DURING HOSPITALIZATION THAT BEGINS WHILE ON ACTIVE DUTY.

    (a) IN GENERAL- Paragraph (7) of section 1481(a) of title 10, United States Code, is amended to read as follows:

      ‘(7) A person who--

        ‘(A) dies as a retired member of an armed force under the Secretary’s jurisdiction during a continuous hospitalization of the member as a patient in a United States hospital that began while the member was on active duty for a period of more than 30 days; or

        ‘(B) is not covered by subparagraph (A) and, while in a retired status by reason of eligibility to retire under chapter 61 of this title, dies during a continuous hospitalization of the person that began while the person was on active duty as a Regular of an armed force under the Secretary’s jurisdiction.’.

    (b) REPEAL OF OBSOLETE TERMINOLOGY- Paragraph (1) of such section is amended by striking out ‘, or a member of an armed force without component,’.

    (c) EFFECTIVE DATE- The amendment made by subsection (a) applies with respect to deaths occurring on or after the date of the enactment of this Act.

SEC. 646. REVISION TO COMPUTATION OF RETIRED PAY FOR CERTAIN MEMBERS.

    Section 1406(i) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (2) as paragraph (3); and

      (2) by inserting after paragraph (1) the following new paragraph (2):

      ‘(2) EXCEPTION FOR MEMBERS REDUCED IN GRADE OR WHO DO NOT SERVE SATISFACTORILY- Paragraph (1) does not apply in the case of a member who, while or after serving in a position specified in that paragraph and by reason of conduct occurring on or after the date of the enactment of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999--

        ‘(A) in the case of an enlisted member, is reduced in grade as the result of a court-martial sentence, nonjudicial punishment, or other administrative process; or

        ‘(B) in the case an officer, is not certified by the Secretary of Defense under section 1370(c) of this title as having served on active duty satisfactorily in the grade of general or admiral, as the case may be, while serving in that position.’.

SEC. 647. ELIMINATION OF BACKLOG OF UNPAID RETIRED PAY.

    (a) REQUIREMENT- The Secretary of the Army shall take such actions as are necessary to eliminate, by December 31, 1998, the backlog of unpaid retired pay for members and former members of the Army (including members and former members of the Army Reserve and the Army National Guard).

    (b) REPORT- Not later than 30 days after the date of the enactment of this Act, the Secretary of the Army shall submit to Congress a report on the backlog of unpaid retired pay. The report shall include the following:

      (1) The actions taken under subsection (a).

      (2) The extent of the remaining backlog.

      (3) A discussion of any additional actions that are necessary to ensure that retired pay is paid in a timely manner.

Subtitle E--Other Matters

SEC. 651. DEFINITION OF POSSESSIONS OF THE UNITED STATES FOR PAY AND ALLOWANCES PURPOSES.

    Section 101(2) of title 37, United States Code, is amended by striking out ‘the Canal Zone,’.

SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

    Section 1006(e) of title 37, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(e)’; and

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

    ‘(2)(A) Notwithstanding any other provision of law, an obligation for an advance of pay made pursuant to this section shall be recorded as an obligation only in the fiscal year in which the entitlement of the member to the pay accrues.

    ‘(B) Current appropriations available for advance payments under this section may be transferred to the prior fiscal year appropriation available for the same purpose in the amount of any unliquidated advance payments that remain at the end of such prior fiscal year. Such unliquidated advance payments shall then be credited to the current appropriation.’.

SEC. 653. REIMBURSEMENT OF RENTAL VEHICLE COSTS WHEN MOTOR VEHICLE TRANSPORTED AT GOVERNMENT EXPENSE IS LATE.

    (a) TRANSPORTATION IN CONNECTION WITH CHANGE OF PERMANENT STATION- Section 2634 of title 10, United States Code, is amended--

      (1) by redesignating subsection (g) as subsection (h); and

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

    ‘(g) If a motor vehicle of a member (or a dependent of the member) that is transported at the expense of the United States under this section does not arrive at the authorized destination of the vehicle by the designated delivery date, the Secretary concerned shall reimburse the member for expenses incurred after that date to rent a motor vehicle for the member’s use, or for the use of the dependent for whom the delayed vehicle was transported. The amount reimbursed may not exceed $30 per day, and the rental period for which reimbursement may be provided expires after 7 days or on the date on which the delayed vehicle arrives at the authorized destination (whichever occurs first).’.

    (b) TRANSPORTATION IN CONNECTION WITH OTHER MOVES- Section 406(h) of title 37, United States Code, is amended by adding at the end the following new paragraph:

    ‘(3) If a motor vehicle of a member (or a dependent of the member) that is transported at the expense of the United States under this subsection does not arrive at the authorized destination of the vehicle by the designated delivery date, the Secretary concerned shall reimburse the member for expenses incurred after that date to rent a motor vehicle for the dependent’s use. The amount reimbursed may not exceed $30 per day, and the rental period for which reimbursement may be provided expires after 7 days or on the date on which the delayed vehicle arrives at the authorized destination (whichever occurs first).’.

    (c) TRANSPORTATION IN CONNECTION WITH DEPARTURE ALLOWANCES FOR DEPENDENTS- Section 405a(b) of title 37, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

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

    ‘(2) If a motor vehicle of a member (or a dependent of the member) that is transported at the expense of the United States under paragraph (1) does not arrive at the authorized destination of the vehicle by the designated delivery date, the Secretary concerned shall reimburse the member for expenses incurred after that date to rent a motor vehicle for the dependent’s use. The amount reimbursed may not exceed $30 per day, and the rental period for which reimbursement may be provided expires after 7 days or on the date on which the delayed vehicle arrives at the authorized destination (whichever occurs first).’.

    (d) TRANSPORTATION IN CONNECTION WITH EFFECTS OF MISSING PERSONS- Section 554 of title 37, United States Code, is amended--

      (1) by redesignating subsection (i) as subsection (j); and

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

    ‘(i) If a motor vehicle of a member (or a dependent of the member) that is transported at the expense of the United States under this section does not arrive at the authorized destination of the vehicle by the designated delivery date, the Secretary concerned shall reimburse the dependent for expenses incurred after that date to rent a motor vehicle for the dependent’s use. The amount reimbursed may not exceed $30 per day, and the rental period for which reimbursement may be provided expires after 7 days or on the date on which the delayed vehicle arrives at the authorized destination (whichever occurs first).’.

    (e) APPLICATION OF AMENDMENTS- (1) Reimbursement for motor vehicle rental expenses may not be provided under the amendments made by this section until after the date on which the Secretary of Defense submits to Congress a report containing a certification that the Department of Defense has in place and operational a system to recover the cost of providing such reimbursement from commercial carriers that are responsible for the delay in the delivery of the motor vehicles of members of the Armed Forces and their dependents. The Secretary of Defense shall prepare the report in consultation with the Secretary of Transportation, with respect to the Coast Guard.

    (2) The amendments shall apply with respect to rental expenses described in such amendments that are incurred on or after the date of the submission of the report. The report shall be submitted not later than six months after the date of the enactment of this Act and shall include, in addition to the certification, a description of the system to be used to recover from commercial carriers the costs incurred under such amendments.

SEC. 654. EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH PROFESSIONS OFFICERS SERVING IN SELECTED RESERVE.

    (a) ELIGIBLE PERSONS- Subsection (b)(2) of section 16302 of title 10, United States Code, is amended by inserting ‘, or is enrolled in a program of education leading to professional qualifications,’ after ‘possesses professional qualifications’.

    (b) INCREASED BENEFITS- Subsection (c) of such section is amended--

      (1) in paragraph (2), by striking out ‘$3,000’ and inserting in lieu thereof ‘$20,000’; and

      (2) in paragraph (3), by striking out ‘$20,000’ and inserting in lieu thereof ‘$50,000’.

SEC. 655. FEDERAL EMPLOYEES’ COMPENSATION COVERAGE FOR STUDENTS PARTICIPATING IN CERTAIN OFFICER CANDIDATE PROGRAMS.

    (a) PERIODS OF COVERAGE- Subsection (a)(2) of section 8140 of title 5, United States Code, is amended to read as follows:

      ‘(2) during the period of the member’s attendance at training or a practice cruise under chapter 103 of title 10, United States Code, beginning when the authorized travel to the training or practice cruise begins and ending when authorized travel from the training or practice cruise ends.’.

    (b) LINE OF DUTY- Subsection (b) of such section is amended to read as follows:

    ‘(b) For the purpose of this section, an injury, disability, death, or illness of a member referred to in subsection (a) may be considered as incurred or contracted in line of duty only if the injury, disability, or death is incurred, or the illness is contracted, by the member during a period described in that subsection. Subject to review by the Secretary of Labor, the Secretary of the military department concerned (under regulations prescribed by that Secretary), shall determine whether an injury, disability, or death was incurred, or an illness was contracted, by a member in line of duty.’.

    (c) CLARIFICATION OF CASUALTIES COVERED- Subsection (a) of such section, as amended by subsection (a) of this section, is further amended by inserting ‘, or an illness contracted,’ after ‘death incurred’ in the matter preceding paragraph (1).

    (d) EFFECTIVE DATE AND APPLICABILITY- The amendments made by subsections (a) and (b) shall take effect on the date of the enactment of this Act and apply with respect to injuries, illnesses, disabilities, and deaths incurred or contracted on or after that date.

SEC. 656. RELATIONSHIP OF ENLISTMENT BONUSES TO ELIGIBILITY TO RECEIVE ARMY COLLEGE FUND SUPPLEMENT UNDER MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE PROGRAM.

    (a) ENLISTEMENT BONUSES AND GI BILL SUPPLEMENT NOT EXCLUSIVE- Section 3015(d) of title 38, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(d)’; and

      (2) by adding at the end the following:

    ‘(2) In the case of an individual who after October 7, 1997, receives an enlistment bonus under section 308a or 308f of title 37, receipt of that bonus does not affect the eligibility of that individual for an increase under paragraph (1) in the rate of the basic educational assistance allowance applicable to that individual, and the Secretary concerned may provide such an increase for that individual (and enter into an agreement with that individual that the United States agrees to make payments pursuant to such an increase) without regard to any provision of law (enacted before, on, or after the date of the enactment of this paragraph) that limits the authority to make such payments.’.

    (b) REPEAL OF RELATED LIMITATIONS- (1) Section 8013(a) of the Department of Defense Appropriations Act, 1998 (111 Stat. 1222), is amended--

      (A) by striking out ‘on or after the date of enactment of this Act--’ and all that follows through ‘nor shall any amounts’ and inserting in lieu thereof ‘after October 7, 1997, enlists in the armed services for a period of active duty of less than three years, nor shall any amounts’; and

      (B) in the first proviso, by striking out ‘in the case of a member covered by clause (1),’.

    (2) Section 8013(a) of the Department of Defense Appropriations Act, 1999, is amended--

      (A) by striking out ‘of this Act--’ and all that follows through ‘nor shall any amounts’ and inserting in lieu thereof ‘of this Act, enlists in the armed services for a period of active duty of less than 3 years, nor shall any amounts’; and

      (B) in the first proviso, by striking out ‘in the case of a member covered by clause (1),’.

    (3) The amendments made by paragraph (2) shall take effect on the later of the following:

      (A) The date of the enactment of this Act.

      (B) The date of the enactment of the Department of Defense Appropriations Act, 1999.

SEC. 657. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE FOR EDUCATION OF CERTAIN DEFENSE DEPENDENTS OVERSEAS.

    Section 1407(b) of the Defense Dependents’ Education Act of 1978 (20 U.S.C. 926(b)) is amended--

      (1) by striking out ‘(b) Under such circumstances as he may by regulation prescribe, the Secretary of Defense’ and inserting in lieu thereof ‘(b) TUITION AND ASSISTANCE WHEN SCHOOLS UNAVAILABLE- (1) Under such circumstances as the Secretary of Defense may prescribe in regulations, the Secretary’; and

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

    ‘(2)(A) The Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service of the Navy, may provide financial assistance to sponsors of dependents in overseas areas where schools operated by the Secretary of Defense under subsection (a) are not reasonably available in order to assist the sponsors to defray the costs incurred by the sponsors for the attendance of the dependents at schools in such areas other than schools operated by the Secretary of Defense.

    ‘(B) The Secretary of Defense and the Secretary of Transportation shall each prescribe regulations relating to the availability of financial assistance under subparagraph (A). Such regulations shall, to the maximum extent practicable, be consistent with Department of State regulations relating to the availability of financial assistance for the education of dependents of Department of State personnel overseas.’.

SEC. 658. CLARIFICATIONS CONCERNING PAYMENTS TO CERTAIN PERSONS CAPTURED OR INTERNED BY NORTH VIETNAM.

    (a) ELIGIBILE SURVIVORS- Subsection (b) of section 657 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is amended by adding at the end the following new paragraphs:

      ‘(3) If there is no surviving spouse or surviving child, to the parents of the decedent, in equal shares, or, if one parent of the decedent has died, to the surviving parent.

      ‘(4) If there is no surviving spouse, surviving child, or surviving parent, to the surviving siblings by blood of the decedent, in equal shares.’.

    (b) PERMITTED RECIPIENTS OF PAYMENT DISBURSEMENT- Subsection (f)(1) of such section is amended by striking out ‘The actual disbursement’ and inserting in lieu thereof ‘Notwithstanding any agreement (including a power of attorney) to the contrary, the actual disbursement’.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

      Sec.701.Dependents’ dental program.

      Sec.702.Expansion of dependent eligibility under retiree dental program.

      Sec.703.Plan for redesign of military pharmacy system.

      Sec.704.Transitional authority to provide continued health care coverage for certain persons unaware of loss of CHAMPUS eligibility.

Subtitle B--TRICARE Program

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

      Sec.712.TRICARE Prime automatic enrollments and retiree payment options.

      Sec.713.System for tracking data and measuring performance in meeting TRICARE access standards.

      Sec.714.Establishment of appeals process for claimcheck denials.

      Sec.715.Reviews relating to accessibility of health care under TRICARE.

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

      Sec.721.Demonstration project to include certain covered beneficiaries within Federal Employees Health Benefits Program.

      Sec.722.TRICARE as Supplement to Medicare demonstration.

      Sec.723.Implementation of redesign of pharmacy system.

      Sec.724.Comprehensive evaluation of implementation of demonstration projects and TRICARE pharmacy redesign.

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

      Sec.731.Process for waiving informed consent requirement for administration of certain drugs to members of Armed Forces for purposes of a particular military operation.

      Sec.732.Health benefits for abused dependents of members of the Armed Forces.

      Sec.733.Provision of health care at military entrance processing stations and elsewhere outside medical treatment facilities.

      Sec.734.Professional qualifications of physicians providing military health care.

Subtitle E--Other Matters

      Sec.741.Enhanced Department of Defense Organ and Tissue Donor program.

      Sec.742.Authorization to establish a Level 1 Trauma Training Center.

      Sec.743.Authority to establish center for study of post-deployment health concerns of members of the Armed Forces.

      Sec.744.Report on implementation of enrollment-based capitation for funding for military medical treatment facilities.

      Sec.745.Joint Department of Defense and Department of Veterans Affairs reports relating to interdepartmental cooperation in the delivery of medical care.

      Sec.746.Report on research and surveillance activities regarding lyme disease and other tick-borne diseases.

Subtitle A--Health Care Services

SEC. 701. DEPENDENTS’ DENTAL PROGRAM.

    (a) PREMIUM INCREASE- Section 1076a(b)(2) of title 10, United States Code, is amended--

      (A) by inserting ‘(A)’ after ‘(2)’; and

      (B) by adding at the end the following:

    ‘(B) Effective as of January 1 of each year, the amount of the premium required under subparagraph (A) shall be increased by the percent equal to the lesser of--

      ‘(i) the percent by which the rates of basic pay of members of the uniformed services are increased on such date; or

      ‘(ii) the sum of one-half percent and the percent computed under section 5303(a) of title 5 for the increase in rates of basic pay for statutory pay systems for pay periods beginning on or after such date.’.

    (2) The amendment made by subparagraph (B) of paragraph (1) shall take effect on January 1, 1999, and shall apply to months after 1998 as if such subparagraph had been in effect since December 31, 1993.

    (b) LIMITATION ON REDUCTION OF BENEFITS- Section 1076a is further amended by adding at the end the following new subsection:

    ‘(j) LIMITATION ON REDUCTION OF BENEFITS- The Secretary of Defense may not reduce benefits provided under this section until--

      ‘(1) the Secretary provides notice of the Secretary’s intent to reduce such benefits to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate; and

      ‘(2) 1 year has elapsed following the date of such notice.’.

SEC. 702. EXPANSION OF DEPENDENT ELIGIBILITY UNDER RETIREE DENTAL PROGRAM.

    (a) IN GENERAL- Subsection (b) of section 1076c of title 10, United States Code, is amended--

      (1) by redesignating paragraph (4) as paragraph (5); and

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

      ‘(4) Eligible dependents of a member described in paragraph (1) or (2) who is not enrolled in the plan and who--

        ‘(A) is enrolled under section 1705 of title 38 to receive dental care from the Secretary of Veterans Affairs;

        ‘(B) is enrolled in a dental plan that--

          ‘(i) is available to the member as a result of employment by the member that is separate from the military service of the member; and

          ‘(ii) is not available to dependents of the member as a result of such separate employment by the member; or

        ‘(C) is prevented by a medical or dental condition from being able to obtain benefits under the plan.’.

    (b) CONFORMING AMENDMENT- Subsection (f)(3) of such section is amended by striking out ‘(b)(4)’ and inserting in lieu thereof ‘(b)(5)’.

SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM.

    (a) PLAN REQUIRED- The Secretary of Defense shall submit to Congress a plan that would provide for a system-wide redesign of the military and contractor retail and mail-order pharmacy system of the Department of Defense by incorporating ‘best business practices’ of the private sector. The Secretary shall work with contractors of TRICARE retail pharmacy and national mail-order pharmacy programs to develop a plan for the redesign of the pharmacy system that--

      (1) may include a plan for an incentive-based formulary for military medical treatment facilities and contractors of TRICARE retail pharmacies and the national mail-order pharmacy; and

      (2) shall include a plan for each of the following:

        (A) A uniform formulary for such facilities and contractors.

        (B) A centralized database that integrates the patient databases of pharmacies of military medical treatment facilities and contractor retail and mail-order programs to implement automated prospective drug utilization review systems.

        (C) A system-wide drug benefit for covered beneficiaries under chapter 55 of title 10, United States Code, who are entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).

    (b) SUBMISSION OF PLAN- The Secretary shall submit the plan required under subsection (a) not later than March 1, 1999.

    (c) SUSPENSION OF IMPLEMENTATION OF PROGRAM- The Secretary shall suspend any plan to establish a national retail pharmacy program for the Department of Defense until--

      (1) the plan required under subsection (a) is submitted; and

      (2) the Secretary implements cost-saving reforms with respect to the military and contractor retail and mail order pharmacy system.

SEC. 704. TRANSITIONAL AUTHORITY TO PROVIDE CONTINUED HEALTH CARE COVERAGE FOR CERTAIN PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) TRANSITIONAL COVERAGE- The administering Secretaries may continue eligibility of a person described in subsection (b) for health care coverage under the Civilian Health and Medical Program of the Uniformed Services based on a determination that such continuation is appropriate to assure health care coverage for any such person who may have been unaware of the loss of eligibility to receive health benefits under that program.

    (b) PERSONS ELIGIBLE- A person shall be eligible for transitional health care coverage under subsection (a) if the person--

      (1) is a person described in paragraph (1) of subsection (d) of section 1086 of title 10, United States Code;

      (2) in the absence of such paragraph, would be eligible for health benefits under such section; and

      (3) satisfies the criteria specified in subparagraphs (A) and (B) of paragraph (2) of such subsection.

    (c) EXTENT OF TRANSITIONAL AUTHORITY- The authority to continue eligibility under this section shall apply with respect to health care services provided between October 1, 1998, and July 1, 1999.

    (d) DEFINITION- In this section, the term ‘administering Secretaries’ has the meaning given that term in section 1072(3) of title 10, United States Code.

Subtitle B--TRICARE Program

SEC. 711. PAYMENT OF CLAIMS FOR PROVISION OF HEALTH CARE UNDER THE TRICARE PROGRAM FOR WHICH A THIRD PARTY MAY BE LIABLE.

    (a) IN GENERAL- (1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1095a the following new section:

‘Sec. 1095b. TRICARE program: contractor payment of certain claims

    ‘(a) PAYMENT OF CLAIMS- (1) The Secretary of Defense may authorize a contractor under the TRICARE program to pay a claim described in paragraph (2) before seeking to recover from a third-party payer the costs incurred by the contractor to provide health care services that are the basis of the claim to a beneficiary under such program.

    ‘(2) A claim under this paragraph is a claim--

      ‘(A) that is submitted to the contractor by a provider under the TRICARE program for payment for services for health care provided to a covered beneficiary; and

      ‘(B) that is identified by the contractor as a claim for which a third-party payer may be liable.

    ‘(b) RECOVERY FROM THIRD-PARTY PAYERS- A contractor for the provision of health care services under the TRICARE program that pays a claim described in subsection (a)(2) shall have the right to collect from the third-party payer the costs incurred by such contractor on behalf of the covered beneficiary. The contractor shall have the same right to collect such costs under this subsection as the right of the United States to collect costs under section 1095 of this title.

    ‘(c) DEFINITION OF THIRD-PARTY PAYER- In this section, the term ‘third-party payer’ has the meaning given that term in section 1095(h) of this title, except that such term excludes primary medical insurers.’.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1095a the following new item:

      ‘1095b. TRICARE program: contractor payment of certain claims.’.

SEC. 712. TRICARE PRIME AUTOMATIC ENROLLMENTS AND RETIREE PAYMENT OPTIONS.

    (a) PROCEDURES- (1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1097 the following new section:

‘Sec. 1097a. TRICARE Prime: automatic enrollments; payment options

    ‘(a) AUTOMATIC ENROLLMENT OF CERTAIN DEPENDENTS- Each dependent of a member of the uniformed services in grade E4 or below who is entitled to medical and dental care under section 1076(a)(2)(A) of this title and resides in the catchment area of a facility of a uniformed service offering TRICARE Prime shall be automatically enrolled in TRICARE Prime at the facility. The Secretary concerned shall provide written notice of the enrollment to the member. The enrollment of a dependent of the member may be terminated by the member or the dependent at any time.

    ‘(b) AUTOMATIC RENEWAL OF ENROLLMENTS OF COVERED BENEFICIARIES- (1) An enrollment of a covered beneficiary in TRICARE Prime shall be automatically renewed upon the expiration of the enrollment unless the renewal is declined.

    ‘(2) Not later than 15 days before the expiration date for an enrollment of a covered beneficiary in TRICARE Prime, the Secretary concerned shall--

      ‘(A) transmit a written notification of the pending expiration and renewal of enrollment to the covered beneficiary or, in the case of a dependent of a member of the uniformed services, to the member; and

      ‘(B) afford the beneficiary or member, as the case may be, an opportunity to decline the renewal of enrollment.

    ‘(c) PAYMENT OPTIONS FOR RETIREES- A member or former member of the uniformed services eligible for medical care and dental care under section 1074(b) of this title may elect to have any fee payable by the member or former member for an enrollment in TRICARE Prime withheld from the member’s retired pay, retainer pay, or equivalent pay, as the case may be, or to be paid from a financial institution through electronic transfers of funds. The fee shall be paid in accordance with the election. A member may elect under this section to pay the fee in full at the beginning of the enrollment period or to make payments on a monthly or quarterly basis.

    ‘(d) REGULATIONS AND EXCEPTIONS- The Secretary of Defense shall prescribe regulations, including procedures, to carry out this section. Regulations prescribed to carry out the automatic enrollment requirements under this section may include such exceptions to the automatic enrollment procedures as the Secretary determines appropriate for the effective operation of TRICARE Prime.

    ‘(e) DEFINITIONS- In this section:

      ‘(1) The term ‘TRICARE Prime’ means the managed care option of the TRICARE program.

      ‘(2) The term ‘catchment area’, with respect to a facility of a uniformed service, means the service area of the facility, as designated under regulations prescribed by the administering Secretaries.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1097 the following new item:

      ‘1097a. TRICARE Prime: automatic enrollments; payment options.’.

    (b) DEADLINE FOR IMPLEMENTATION- The regulations required under subsection (d) of section 1097a of title 10, United States Code (as added by subsection (a)), shall be prescribed to take effect not later than September 30, 1999. The section shall be applied under TRICARE Prime on and after the date on which the regulations take effect.

SEC. 713. SYSTEM FOR TRACKING DATA AND MEASURING PERFORMANCE IN MEETING TRICARE ACCESS STANDARDS.

    (a) REQUIREMENT TO ESTABLISH SYSTEM- (1) The Secretary of Defense shall establish a system--

      (A) to track data regarding access of covered beneficiaries under chapter 55 of title 10, United States Code, to primary health care under the TRICARE program; and

      (B) to measure performance in increasing such access against the primary care access standards established by the Secretary under the TRICARE program.

    (2) In implementing the system described in paragraph (1), the Secretary shall collect data on the timeliness of appointments and precise waiting times for appointments in order to measure performance in meeting the primary care access standards established under the TRICARE program.

    (b) DEADLINE FOR ESTABLISHMENT- The Secretary shall establish the system described in subsection (a) not later than April 1, 1999.

SEC. 714. ESTABLISHMENT OF APPEALS PROCESS FOR CLAIMCHECK DENIALS.

    (a) ESTABLISHMENT OF APPEALS PROCESS- Not later than January 1, 1999, the Secretary of Defense shall establish an appeals process in cases of denials through the ClaimCheck computer software system (or any other claims processing system that may be used by the Secretary) of claims by civilian providers for payment for health care services provided under the TRICARE program.

    (b) REPORT- Not later than March 1, 1999, the Secretary shall submit to Congress a report on the implementation of this section.

SEC. 715. REVIEWS RELATING TO ACCESSIBILITY OF HEALTH CARE UNDER TRICARE.

    (a) REVIEW OF REHABILITATIVE SERVICES FOR HEAD INJURIES- The Secretary of Defense shall review policies under the TRICARE program (including a review of the TRICARE policy manual) to determine if policies addressing the availability of rehabilitative services for TRICARE patients suffering from head injuries are adequate and appropriately address consideration of certification by an attending physician that such services would be beneficial for such a patient.

    (b) REVIEW OF ADEQUACY OF PROVIDER NETWORK- The Secretary of Defense shall review the administration of the TRICARE Prime health plans to determine whether, for each region covered by such a plan, there is a sufficient number, distribution, and variety of qualified participating health care providers to ensure that covered health care services, including specialty services and rehabilitative services, are accessible in the vicinity of the residence of the enrollees and available in a timely manner to such enrollees, regardless of where such enrollees are located within the TRICARE region.

    (c) REPORT- Not later than April 1, 1999, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the results of the reviews required by subsections (a) and (b), together with a description of any actions taken or directed as a result of those reviews.

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

SEC. 721. DEMONSTRATION PROJECT TO INCLUDE CERTAIN COVERED BENEFICIARIES WITHIN FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.

    (a) FEHBP DEMONSTRATION PROJECT- (1) Chapter 55 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 1108. Health care coverage through Federal Employees Health Benefits program: demonstration project

    ‘(a) FEHBP OPTION DEMONSTRATION- The Secretary of Defense, after consulting with the other administering Secretaries, shall enter into an agreement with the Office of Personnel Management to conduct a demonstration project (in this section referred to as the ‘demonstration project’) under which eligible beneficiaries described in subsection (b) and residing within one of the areas covered by the demonstration project may enroll in health benefits plans offered through the Federal Employees Health Benefits program under chapter 89 of title 5. The number of eligible beneficiaries and family members of such beneficiaries under subsection (b)(2) who may be enrolled in health benefits plans during the enrollment period under subsection (d)(2) may not exceed 66,000.

    ‘(b) ELIGIBLE BENEFICIARIES; COVERAGE- (1) An eligible beneficiary under this subsection is--

      ‘(A) a member or former member of the uniformed services described in section 1074(b) of this title who is entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);

      ‘(B) an individual who is an unremarried former spouse of a member or former member described in section 1072(2)(F) or 1072(2)(G));

      ‘(C) an individual who is--

        ‘(i) a dependent of a deceased member or former member described in section 1076(b) or 1076(a)(2)(B) of this title or of a member who died while on active duty for a period of more than 30 days; and

        ‘(ii) a member of family as defined in section 8901(5) of title 5; or

      ‘(D) an individual who is--

        ‘(i) a dependent of a living member or former member described in section 1076(b)(1) of this title who is entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act, regardless of the member’s or former member’s eligibility for such hospital insurance benefits; and

        ‘(ii) a member of family as defined in section 8901(5) of title 5.

    ‘(2) Eligible beneficiaries may enroll in a Federal Employees Health Benefit plan under chapter 89 of title 5 under this section for self-only coverage or for self and family coverage which includes any dependent of the member or former member who is a family member for purposes of such chapter.

    ‘(3) A person eligible for coverage under this subsection shall not be required to satisfy any eligibility criteria specified in chapter 89 of title 5 (except as provided in paragraph (1)(C) or (1)(D)) as a condition for enrollment in health benefits plans offered through the Federal Employees Health Benefits program under the demonstration project.

    ‘(4) For purposes of determining whether an individual is a member of family under paragraph (5) of section 8901 of title 5 for purposes of paragraph (1)(C) or (1)(D), a member or former member described in section 1076(b) or 1076(a)(2)(B) of this title shall be deemed to be an employee under such section.

    ‘(5) An eligible beneficiary who is eligible to enroll in the Federal Employees Health Benefits program as an employee under chapter 89 of title 5 is not eligible to enroll in a Federal Employees Health Benefits plan under this section.

    ‘(c) AREA OF DEMONSTRATION PROJECT- The Secretary of Defense and the Director of the Office of Personnel Management shall jointly identify and select the geographic areas in which the demonstration project will be conducted. The Secretary and the Director shall establish at least six, but not more than ten, such demonstration areas. In establishing the areas, the Secretary and Director shall include--

      ‘(1) an area that includes the catchment area of one or more military medical treatment facilities;

      ‘(2) an area that is not located in the catchment area of a military medical treatment facility;

      ‘(3) an area in which there is a Medicare Subvention Demonstration project area under section 1896 of title XVIII of the Social Security Act (42 U.S.C. 1395ggg); and

      ‘(4) not more than one area for each TRICARE region.

    ‘(d) DURATION OF DEMONSTRATION PROJECT- (1) The Secretary of Defense shall conduct the demonstration project during three contract years under the Federal Employees Health Benefits program.

    ‘(2) Eligible beneficiaries shall, as provided under the agreement pursuant to subsection (a), be permitted to enroll in the demonstration project during an open enrollment period for the year 2000 (conducted in the fall of 1999). The demonstration project shall terminate on December 31, 2002.

    ‘(e) PROHIBITION AGAINST USE OF MTFS AND ENROLLMENT UNDER TRICARE- Covered beneficiaries under this chapter who are provided coverage under the demonstration project shall not be eligible to receive care at a military medical treatment facility or to enroll in a heath care plan under the TRICARE program.

    ‘(f) TERM OF ENROLLMENT IN PROJECT- (1) Subject to paragraphs (2) and (3), the period of enrollment of an eligible beneficiary who enrolls in the demonstration project during the open enrollment period for the year 2000 shall be three years unless the beneficiary disenrolls before the termination of the project.

    ‘(2) A beneficiary who elects to enroll in the project, and who subsequently discontinues enrollment in the project before the end of the period described in paragraph (1), shall not be eligible to reenroll in the project.

    ‘(3) An eligible beneficiary enrolled in a Federal Employees Health Benefits plan under this section may change health benefits plans and coverage in the same manner as any other Federal Employees Health Benefits program beneficiary may change such plans.

    ‘(g) EFFECT OF CANCELLATION- The cancellation by an eligible beneficiary of coverage under the Federal Employee Health Benefits program shall be irrevocable during the term of the demonstration project.

    ‘(h) SEPARATE RISK POOLS; CHARGES- (1) The Director of the Office of Personnel Management shall require health benefits plans under chapter 89 of title 5 that participate in the demonstration project to maintain a separate risk pool for purposes of establishing premium rates for eligible beneficiaries who enroll in such a plan in accordance with this section.

    ‘(2) The Director shall determine total subscription charges for self only or for family coverage for eligible beneficiaries who enroll in a health benefits plan under chapter 89 of title 5 in accordance with this section. The subscription charges shall include premium charges paid to the plan and amounts described in section 8906(c) of title 5 for administrative expenses and contingency reserves.

    ‘(i) GOVERNMENT CONTRIBUTIONS- The Secretary of Defense shall be responsible for the Government contribution for an eligible beneficiary who enrolls in a health benefits plan under chapter 89 of title 5 in accordance with this section, except that the amount of the contribution may not exceed the amount of the Government contribution which would be payable if the electing beneficiary were an employee (as defined for purposes of such chapter) enrolled in the same health benefits plan and level of benefits.

    ‘(j) REPORT REQUIREMENTS- (1) The Secretary of Defense and the Director of the Office of Personnel Management shall jointly submit to Congress two reports containing the information described in paragraph (2). The first report shall be submitted not later than the date that is 15 months after the date that the Secretary begins to implement the demonstration project. The second report shall be submitted not later than December 31, 2002.

    ‘(2) The reports required by paragraph (1) shall include the following:

      ‘(A) Information on the number of eligible beneficiaries who elect to participate in the demonstration project.

      ‘(B) An analysis of the percentage of eligible beneficiaries who participate in the demonstration project as compared to the percentage of covered beneficiaries under this chapter who elect to enroll in a health care plan under such chapter.

      ‘(C) Information on eligible beneficiaries who elect to participate in the demonstration project and did not have Medicare Part B coverage before electing to participate in the project.

      ‘(D) An analysis of the enrollment rates and cost of health services provided to eligible beneficiaries who elect to participate in the demonstration project as compared with similarly situated enrollees in the Federal Employees Health Benefits program under chapter 89 of title 5.

      ‘(E) An analysis of how the demonstration project affects the accessibility of health care in military medical treatment facilities, and a description of any unintended effects on the treatment priorities in those facilities in the demonstration area.

      ‘(F) An analysis of any problems experienced by the Department of Defense in managing the demonstration project.

      ‘(G) A description of the effects of the demonstration project on medical readiness and training of the Armed Forces at military medical treatment facilities located in the demonstration area, and a description of the probable effects that making the project permanent would have on the medical readiness and training.

      ‘(H) An examination of the effects that the demonstration project, if made permanent, would be expected to have on the overall budget of the Department of Defense, the budget of the Office of Personnel Management, and the budgets of individual military medical treatment facilities.

      ‘(I) An analysis of whether the demonstration project affects the cost to the Department of Defense of prescription drugs or the accessibility, availability, and cost of such drugs to eligible beneficiaries.

      ‘(J) Any additional information that the Secretary of Defense or the Director of the Office of Personnel Management considers appropriate to assist Congress in determining the viability of expanding the project to all Medicare-eligible members of the uniformed services and their dependents.

      ‘(K) Recommendations on whether eligible beneficiaries--

        ‘(i) should be given more than one chance to enroll in the demonstration project under this section;

        ‘(ii) should be eligible to enroll in the project only during the first year following the date that the eligible beneficiary becomes eligible to receive hospital insurance benefits under part A of title XVIII of the Social Security Act; or

        ‘(iii) should be eligible to enroll in the project only during the 2-year period following the date on which the beneficiary first becomes eligible to enroll in the project.

    ‘(k) COMPTROLLER GENERAL REPORT- Not later than December 31, 2002, the Comptroller General shall submit to Congress a report addressing the same matters required to be addressed under subsection (j)(2). The report shall describe any limitations with respect to the data contained in the report as a result of the size and design of the demonstration project.

    ‘(l) APPLICATION OF MEDIGAP PROTECTIONS TO DEMONSTRATION PROJECT ENROLLEES- (1) Subject to paragraph (2), the provisions of section 1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and 1882(s)(4) of the Social Security Act shall apply to enrollment (and termination of enrollment) in the demonstration project under this section, in the same manner as they apply to enrollment (and termination of enrollment) with a Medicare+Choice organization in a Medicare+Choice plan.

    ‘(2) In applying paragraph (1)--

      ‘(A) any reference in clause (v) or (vi) of section 1882(s)(3)(B) of such Act to 12 months is deemed a reference to 36 months; and

      ‘(B) the notification required under section 1882(s)(3)(D) of such Act shall be provided in a manner specified by the Secretary of Defense in consultation with the Director of the Office of Personnel Management.’.

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

      ‘1108. Health care coverage through Federal Employees Health Benefits program: demonstration project.’.

    (b) CONFORMING AMENDMENTS- Chapter 89 of title 5, United States Code, is amended--

      (1) in section 8905--

        (A) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and

        (B) by inserting after subsection (c) the following new subsection:

    ‘(d) An individual whom the Secretary of Defense determines is an eligible beneficiary under subsection (b) of section 1108 of title 10 may enroll, as part of the demonstration project under such section, in a health benefits plan under this chapter in accordance with the agreement under subsection (a) of such section between the Secretary and the Office and applicable regulations under this chapter.’;

      (2) in section 8906(b)--

        (A) in paragraph (1), by striking ‘paragraphs (2) and (3)’ and inserting in lieu thereof ‘paragraphs (2), (3), and (4)’; and

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

    ‘(4) In the case of persons who are enrolled in a health benefits plan as part of the demonstration project under section 1108 of title 10, the Government contribution shall be subject to the limitation set forth in subsection (i) of that section.’;

      (3) in section 8906(g)--

        (A) in paragraph (1), by striking ‘paragraph (2)’ and inserting in lieu thereof ‘paragraphs (2) and (3)’; and

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

    ‘(3) The Government contribution for persons enrolled in a health benefits plan as part of the demonstration project under section 1108 of title 10 shall be paid as provided in subsection (i) of that section.’; and

      (4) in section 8909, by adding at the end the following new subsection:

    ‘(g) The fund described in subsection (a) is available to pay costs that the Office incurs for activities associated with implementation of the demonstration project under section 1108 of title 10.’.

SEC. 722. TRICARE AS SUPPLEMENT TO MEDICARE DEMONSTRATION.

    (a) IN GENERAL- (1) The Secretary of Defense shall, after consultation with the other administering Secretaries, carry out a demonstration project in order to assess the feasibility and advisability of providing medical care coverage under the TRICARE program to the individuals described in subsection (c). The demonstration project shall be known as the ‘TRICARE Senior Supplement’.

    (2) The Secretary shall commence the demonstration project not later than January 1, 2000, and shall terminate the demonstration project not later than December 31, 2002.

    (3) Under the demonstration project, the Secretary shall permit eligible individuals described in subsection (c) to enroll in the TRICARE program.

    (4) Payment for care and services received by eligible individuals who enroll in the TRICARE program under the demonstration project shall be made as follows:

      (A) First, under title XVIII of the Social Security Act, but only to the extent that payment for such care and services is provided for under that title.

      (B) Second, under the TRICARE program, but only to the extent that payment for such care and services is provided under that program and is not provided for under subparagraph (A).

      (C) Third, by the eligible individual concerned, but only to the extent that payment for such care and services is not provided for under subparagraph (A) or (B).

    (5)(A) The Secretary shall require each eligible individual who enrolls in the TRICARE program under the demonstration project to pay an enrollment fee. The Secretary shall provide, to the extent feasible, the option of payment of the enrollment fee through electronic transfers of funds and through withholding of such payment from the pay of a member or former member of the Armed Forces, and shall provide the option that payment of the enrollment fee be made in full at the beginning of the enrollment period or that payments be made on a monthly or quarterly basis.

    (B) The amount of the enrollment fee charged an eligible individual under subparagraph (A) for self-only or family enrollment in any year may not exceed the amount equal to 75 percent of the total subscription charges in that year for self-only or family, respectively, fee-for-service coverage under the health benefits plan under the Federal Employees Health Benefits program under chapter 89 of title 5, United States Code, that is most similar in coverage to the TRICARE program.

    (6) A covered beneficiary who enrolls in TRICARE Senior Supplement under this subsection shall not be eligible to receive health care at a facility of the uniformed services during the period such enrollment is in effect.

    (b) EVALUATION; REVIEW- (1) The Secretary shall provide for an evaluation of the demonstration project conducted under this subsection by an appropriate person or entity that is independent of the Department of Defense. The evaluation shall include the following:

      (A) An analysis of the costs of the demonstration project to the United States and to the eligible individuals who participate in such demonstration project.

      (B) An assessment of the extent to which the demonstration project satisfies the requirements of such eligible individuals for the health care services available under the demonstration project.

      (C) An assessment of the effect, if any, of the demonstration project on military medical readiness.

      (D) A description of the rate of the enrollment in the demonstration project of the individuals who were eligible to enroll in the demonstration project.

      (E) An assessment of whether the demonstration project provides the most suitable model for a program to provide adequate health care services to the population of individuals consisting of the eligible individuals.

      (F) An evaluation of any other matters that the Secretary considers appropriate.

    (2) The Comptroller General shall review the evaluation conducted under paragraph (1). In carrying out the review, the Comptroller General shall--

      (A) assess the validity of the processes used in the evaluation; and

      (B) assess the validity of any findings under the evaluation, including any limitations with respect to the data contained in the evaluation as a result of the size and design of the demonstration project.

    (3)(A) The Secretary shall submit a report on the results of the evaluation under paragraph (1), together with the evaluation, to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives not later than December 31, 2002.

    (B) The Comptroller General shall submit a report on the results of the review under paragraph (2) to the committees referred to in subparagraph (A) not later than February 15, 2003.

    (c) ELIGIBLE INDIVIDUALS- (1) An individual is eligible to participate under this section if the individual is a member or former member of the uniformed services described in section 1074(b) of title 10, United States Code, a dependent of the member described in section 1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of the uniformed services who died while on active duty for a period of more than 30 days, who--

      (A) is 65 years of age or older;

      (B) is entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);

      (C) is enrolled in the supplemental medical insurance program under part B of such title XVIII (42 U.S.C. 1395j et seq.); and

      (D) resides in an area selected by the Secretary under subsection (c).

    (d) AREAS OF IMPLEMENTATION- (1) The Secretary shall carry out the demonstration project under this section in two separate areas selected by the Secretary.

    (2) The areas selected by the Secretary under paragraph (1) shall be as follows:

      (A) One area shall be an area outside the catchment area of a military medical treatment facility in which--

        (i) no eligible organization has a contract in effect under section 1876 of the Social Security Act (42 U.S.C. 1395mm) and no Medicare+Choice organization has a contract in effect under part C of title XVIII of that Act (42 U.S.C. 1395w-21); or

        (ii) the aggregate number of enrollees with an eligible organization with a contract in effect under section 1876 of that Act or with a Medicare+Choice organization with a contract in effect under part C of title XVIII of that Act is less than 2.5 percent of the total number of individuals in the area who are entitled to hospital insurance benefits under part A of title XVIII of that Act.

      (B) The other area shall be an area outside the catchment area of a military medical treatment facility in which--

        (i) at least one eligible organization has a contract in effect under section 1876 of that Act or one Medicare+Choice organization has a contract in effect under part C of title XVIII of that Act; and

        (ii) the aggregate number of enrollees with an eligible organization with a contract in effect under section 1876 of that Act or with a Medicare+Choice organization with a contract in effect under part C of title XVIII of that Act exceeds 10 percent of the total number of individuals in the area who are entitled to hospital insurance benefits under part A of title XVIII of that Act.

    (e) DEFINITIONS- In this section:

      (1) The term ‘administering Secretaries’ has the meaning given that term in section 1072(3) of title 10, United States Code.

      (2) The term ‘TRICARE program’ has the meaning given that term in section 1072(7) of title 10, United States Code.

SEC. 723. IMPLEMENTATION OF REDESIGN OF PHARMACY SYSTEM.

    (a) IN GENERAL- Not later than October 1, 1999, the Secretary of Defense shall implement, with respect to eligible individuals described in subsection (e) who reside in an area selected under subsection (f), the redesign of the pharmacy system under TRICARE (including the mail-order and retail pharmacy benefit under TRICARE) to incorporate ‘best business practices’ of the private sector in providing pharmaceuticals, as developed under the plan described in section 703.

    (b) COLLECTION OF PREMIUMS AND OTHER CHARGES- The Secretary of Defense may collect from eligible individuals described in subsection (e) who participate in the redesigned pharmacy system any premiums, deductibles, copayments, or other charges that the Secretary would otherwise collect from individuals similar to such individuals.

    (c) EVALUATION- The Secretary shall provide for an evaluation of the implementation of the redesign of the pharmacy system under TRICARE under this section by an appropriate person or entity that is independent of the Department of Defense. The evaluation shall include the following:

      (1) An analysis of the costs of the implementation of the redesign of the pharmacy system under TRICARE and to the eligible individuals who participate in the system.

      (2) An assessment of the extent to which the implementation of such system satisfies the requirements of the eligible individuals for the health care services available under TRICARE.

      (3) An assessment of the effect, if any, of the implementation of the system on military medical readiness.

      (4) A description of the rate of the participation in the system of the individuals who were eligible to participate.

      (5) An evaluation of any other matters that the Secretary considers appropriate.

    (d) REPORTS- The Secretary shall submit two reports on the results of the evaluation under subsection (c), together with the evaluation, to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives. The first report shall be submitted not later than December 31, 2000, and the second report shall be submitted not later than December 31, 2002.

    (e) ELIGIBLE INDIVIDUALS- (1) An individual is eligible to participate under this section if the individual is a member or former member of the uniformed services described in section 1074(b) of title 10, United States Code, a dependent of the member described in section 1076(a)(2)(B) or 1076(b) of that title, or a dependent of a member of the uniformed services who died while on active duty for a period of more than 30 days, who--

      (A) is 65 years of age or older;

      (B) is entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.);

      (C) except as provided in paragraph (2), is enrolled in the supplemental medical insurance program under part B of such title XVIII (42 U.S.C. 1395j et seq.); and

      (D) resides in an area selected by the Secretary under subsection (f).

    (2) Paragraph (1)(C) shall not apply in the case of an individual who at the time of attaining the age of 65 lived within 100 miles of the catchment area of a military medical treatment facility.

    (f) AREAS OF IMPLEMENTATION- (1) The Secretary shall carry out the implementation of the redesign of the pharmacy system under TRICARE in two separate areas selected by the Secretary.

    (2) The areas selected by the Secretary under paragraph (1) shall be as follows:

      (A) One area shall be an area outside the catchment area of a military medical treatment facility in which--

        (i) no eligible organization has a contract in effect under section 1876 of the Social Security Act (42 U.S.C. 1395mm) and no Medicare+Choice organization has a contract in effect under part C of title XVIII of that Act (42 U.S.C. 1395w-21); or

        (ii) the aggregate number of enrollees with an eligible organization with a contract in effect under section 1876 of that Act or with a Medicare+Choice organization with a contract in effect under part C of title XVIII of that Act is less than 2.5 percent of the total number of individuals in the area who are entitled to hospital insurance benefits under part A of title XVIII of that Act.

      (B) The other area shall be an area outside the catchment area of a military medical treatment facility in which--

        (i) at least one eligible organization has a contract in effect under section 1876 of that Act or one Medicare+Choice organization has a contract in effect under part C of title XVIII of that Act; and

        (ii) the aggregate number of enrollees with an eligible organization with a contract in effect under section 1876 of that Act or with a Medicare+Choice organization with a contract in effect under part C of title XVIII of that Act exceeds 10 percent of the total number of individuals in the area who are entitled to hospital insurance benefits under part A of title XVIII of that Act.

SEC. 724. COMPREHENSIVE EVALUATION OF IMPLEMENTATION OF DEMONSTRATION PROJECTS AND TRICARE PHARMACY REDESIGN.

    Not later than March 31, 2003, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report containing a comprehensive comparative analysis of the FEHBP demonstration project conducted under section 1108 of title 10, United States Code (as added by section 721), the TRICARE Senior Supplement under section 722, and the redesign of the TRICARE pharmacy system under section 723. The comprehensive analysis shall incorporate the findings of the evaluation submitted under section 723(c) and the report submitted under subsection (j) of such section 1108.

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

SEC. 731. PROCESS FOR WAIVING INFORMED CONSENT REQUIREMENT FOR ADMINISTRATION OF CERTAIN DRUGS TO MEMBERS OF ARMED FORCES FOR PURPOSES OF A PARTICULAR MILITARY OPERATION.

    (a) LIMITATION AND WAIVER- (1) Section 1107 of title 10, United States Code, is amended--

      (A) by redesignating subsection (f) as subsection (g); and

      (B) by inserting after subsection (e) the following new subsection (f):

    ‘(f) LIMITATION AND WAIVER- (1) In the case of the administration of an investigational new drug or a drug unapproved for its applied use to a member of the armed forces in connection with the member’s participation in a particular military operation, the requirement that the member provide prior consent to receive the drug in accordance with the prior consent requirement imposed under section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)) may be waived only by the President. The President may grant such a waiver only if the President determines, in writing, that obtaining consent--

      ‘(A) is not feasible;

      ‘(B) is contrary to the best interests of the member; or

      ‘(C) is not in the interests of national security.

    ‘(2) In making a determination to waive the prior consent requirement on a ground described in subparagraph (A) or (B) of paragraph (1), the President shall apply the standards and criteria that are set forth in the relevant FDA regulations for a waiver of the prior consent requirement on that ground.

    ‘(3) The Secretary of Defense may request the President to waive the prior consent requirement with respect to the administration of an investigational new drug or a drug unapproved for its applied use to a member of the armed forces in connection with the member’s participation in a particular military operation. With respect to any such administration--

      ‘(A) the Secretary may not delegate to any other official the authority to request the President to waive the prior consent requirement for the Department of Defense; and

      ‘(B) if the President grants the requested waiver, the Secretary shall submit to the chairman and ranking minority member of each congressional defense committee a notification of the waiver, together with the written determination of the President under paragraph (1) and the Secretary’s justification for the request or requirement under subsection (a) for the member to receive the drug covered by the waiver.

    ‘(4) In this subsection:

      ‘(A) The term ‘relevant FDA regulations’ means the regulations promulgated under section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).

      ‘(B) The term ‘prior consent requirement’ means the requirement included in the relevant FDA regulations pursuant to section 505(i)(4) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)(4)).

      ‘(C) The term ‘congressional defense committee’ means each of the following:

        ‘(i) The Committee on Armed Services and the Committee on Appropriations of the Senate.

        ‘(ii) The Committee on National Security and the Committee on Appropriations of the House of Representatives.’.

    (2) Subsection (f) of section 1107 of title 10, United States Code (as added by paragraph (1)), shall apply to the administration of an investigational new drug or a drug unapproved for its applied use to a member of the Armed Forces in connection with the member’s participation in a particular military operation on or after the date of the enactment of this Act.

    (3) A waiver of the requirement for prior consent imposed under the regulations required under paragraph (4) of section 505(i) of the Federal Food, Drug, and Cosmetic Act (or under any antecedent provision of law or regulations) that has been granted under that section (or antecedent provision of law or regulations) before the date of the enactment of this Act for the administration of a drug to a member of the Armed Forces in connection with the member’s participation in a particular military operation may be applied in that case after that date only if--

      (A) the Secretary of Defense personally determines that the waiver is justifiable on each ground on which the waiver was granted;

      (B) the President concurs in that determination in writing; and

      (C) the Secretary submits to the chairman and ranking minority member of each congressional committee referred to in section 1107(f)(4)(C) of title 10, United States Code (as added by paragraph (1))--

        (i) a notification of the waiver;

        (ii) the President’s written concurrence; and

        (iii) the Secretary’s justification for the request or for the requirement under subsection 1107(a) of such title for the member to receive the drug covered by the waiver.

    (b) TIME AND FORM OF NOTICE- (1) Subsection (b) of such section is amended by striking out ‘, if practicable’ and all that follows through ‘first administered to the member’.

    (2) Subsection (c) of such section is amended by striking out ‘unless the Secretary of Defense determines’ and all that follows through ‘alternative method’.

SEC. 732. HEALTH BENEFITS FOR ABUSED DEPENDENTS OF MEMBERS OF THE ARMED FORCES.

    Section 1076(e) of title 10, United States Code, is amended--

      (1) by amending paragraph (1) to read as follows:

    ‘(1) Subject to paragraph (3), the administering Secretary shall furnish an abused dependent of a former member of a uniformed service described in paragraph (4), during that period that the abused dependent is in receipt of transitional compensation under section 1059 of this title, with medical and dental care, including mental health services, in facilities of the uniformed services in accordance with the same eligibility and benefits as were applicable for that abused dependent during the period of active service of the former member.’; and

      (2) in paragraph (3)--

        (A) by adding ‘and’ at the end of subparagraph (A);

        (B) by striking ‘; and’ at the end of subparagraph (B) and inserting a period; and

        (C) by striking subparagraph (C).

SEC. 733. PROVISION OF HEALTH CARE AT MILITARY ENTRANCE PROCESSING STATIONS AND ELSEWHERE OUTSIDE MEDICAL TREATMENT FACILITIES.

    (a) EXTENSION OF AUTHORIZATION FOR USE OF PERSONAL SERVICES CONTRACTS- Section 1091(a)(2) of title 10, United States Code, is amended in the second sentence by striking out ‘the end of the one-year period beginning on the date of the enactment of this paragraph’ and inserting in lieu thereof ‘December 31, 2000’.

    (b) TEST OF ALTERNATIVE PROCESS FOR CONDUCTING MEDICAL SCREENINGS FOR ENLISTMENT QUALIFICATION- (1) The Secretary of Defense shall conduct a test to--

      (A) determine whether the use of an alternative to the system currently used by the Department of Defense of employing fee-basis physicians for determining the medical qualifications for enlistment of applicants for military service would reduce the number of disqualifying medical conditions that are detected during the initial entry training of such applicants;

      (B) determine whether any savings or cost avoidance may be achieved through use of an alternative system as a result of any increased detection of disqualifying medical conditions before entry by applicants into initial entry training; and

      (C) compare the capability of an alternative system to meet or exceed the cost, responsiveness, and timeliness standards of the system currently used by the Department.

    (2) The alternative system described in paragraph (1) may include the system used under the TRICARE system, the health-care system of the Department of Veterans Affairs, or any other system, or combination of systems, considered appropriate by the Secretary.

    (3) Not later than March 1, 2000, the Secretary shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report on the results and findings of the test conducted under paragraph (1).

SEC. 734. PROFESSIONAL QUALIFICATIONS OF PHYSICIANS PROVIDING MILITARY HEALTH CARE.

    (a) REQUIREMENT FOR UNRESTRICTED LICENSE- Section 1094(a)(1) of title 10, United States Code, is amended by adding at the end the following: ‘In the case of a physician, the physician may not provide health care as a physician under this chapter unless the current license is an unrestricted license that is not subject to limitation on the scope of practice ordinarily granted to other physicians for a similar specialty by the jurisdiction that granted the license.’.

    (b) SATISFACTION OF CONTINUING MEDICAL EDUCATION REQUIREMENTS- (1) Chapter 55 of title 10, United States Code, is amended by inserting after section 1094 the following new section:

‘Sec. 1094a. Continuing medical education requirements: system for monitoring physician compliance

    ‘The Secretary of Defense shall establish a mechanism for ensuring that each person under the jurisdiction of the Secretary of a military department who provides health care under this chapter as a physician satisfies the continuing medical education requirements applicable to the physician.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1094 the following new item:

      ‘1094a. Continuing medical education requirements: system for monitoring physician compliance.’.

    (c) EFFECTIVE DATES- (1) The amendment made by subsection (a) shall take effect on October 1, 1999.

    (2) The system required by section 1094a of title 10, United States Code (as added by subsection (b)), shall take effect on the date that is three years after the date of the enactment of this Act.

Subtitle E--Other Matters

SEC. 741. ENHANCED DEPARTMENT OF DEFENSE ORGAN AND TISSUE DONOR PROGRAM.

    (a) FINDINGS- Congress makes the following findings:

      (1) Organ and tissue transplantation is one of the most remarkable medical success stories in the history of medicine.

      (2) Each year, the number of people waiting for organ or tissue transplantation increases. It is estimated that there are approximately 39,000 patients, ranging in age from babies to those in retirement, awaiting transplants of kidneys, hearts, livers, and other solid organs.

      (3) The Department of Defense has made significant progress in increasing the awareness of the importance of organ and tissue donations among members of the Armed Forces.

      (4) The inclusion of organ and tissue donor elections in the Defense Enrollment Eligibility Reporting System (DEERS) central database represents a major step in ensuring that organ and tissue donor elections are a matter of record and are accessible in a timely manner.

    (b) RESPONSIBILITIES REGARDING ORGAN AND TISSUE DONATION- (1) Chapter 55 of title 10, United States Code, is amended by adding after section 1108, as added by section 721(a)(1), the following new section:

‘Sec. 1109. Organ and tissue donor program

    ‘(a) RESPONSIBILITIES OF THE SECRETARY OF DEFENSE- The Secretary of Defense shall ensure that the advanced systems developed for recording armed forces members’ personal data and information (such as the SMARTCARD, MEDITAG, and Personal Information Carrier) include the capability to record organ and tissue donation elections.

    ‘(b) RESPONSIBILITIES OF THE SECRETARIES OF THE MILITARY DEPARTMENTS- (1) The Secretaries of the military departments shall ensure that--

      ‘(1) appropriate information about organ and tissue donation is provided--

        ‘(A) to each officer candidate during initial training; and

        ‘(B) to each recruit--

          ‘(i) after completion by the recruit of basic training; and

          ‘(ii) before arrival of the recruit at the first duty assignment of the recruit;

      ‘(2) members of the armed forces are given recurring, specific opportunities to elect to be organ or tissue donors during service in the armed forces and upon retirement; and

      ‘(3) members of the armed forces electing to be organ or tissue donors are encouraged to advise their next of kin concerning the donation decision and any subsequent change of that decision.

    ‘(c) RESPONSIBILITIES OF THE SURGEONS GENERAL OF THE MILITARY DEPARTMENTS- The Surgeons General of the military departments shall ensure that--

      ‘(1) appropriate training is provided to enlisted and officer medical personnel to facilitate the effective operation of organ and tissue donation activities under garrison conditions and, to the extent possible, under operational conditions; and

      ‘(2) medical logistical activities can, to the extent possible without jeopardizing operational requirements, support an effective organ and tissue donation program.’.

    (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 1108, as added by section 721(a)(2), the following new item:

      ‘1109. Organ and tissue donor program.’.

    (c) REPORT- Not later than September 1, 1999, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the implementation of section 1109 of title 10, United States Code (as added by subsection (b)).

SEC. 742. AUTHORIZATION TO ESTABLISH A LEVEL 1 TRAUMA TRAINING CENTER.

    The Secretary of the Army is hereby authorized to establish a Level 1 Trauma Training Center (as designated by the American College of Surgeons) in order to provide the Army with a trauma center capable of training forward surgical teams.

SEC. 743. AUTHORITY TO ESTABLISH CENTER FOR STUDY OF POST-DEPLOYMENT HEALTH CONCERNS OF MEMBERS OF THE ARMED FORCES.

    The Secretary of Defense is hereby authorized to establish a center devoted to a longitudinal study to evaluate data on the health conditions of members of the Armed Forces upon their return from deployment on military operations for purposes of ensuring the rapid identification of any trends in diseases, illnesses, or injuries among such members as a result of such operations.

SEC. 744. REPORT ON IMPLEMENTATION OF ENROLLMENT-BASED CAPITATION FOR FUNDING FOR MILITARY MEDICAL TREATMENT FACILITIES.

    (a) REPORT REQUIRED- The Secretary of Defense shall submit to Congress a report on the potential impact of using an enrollment-based capitation methodology to allocate funds for military medical treatment facilities. The report shall address the following:

      (1) A description of the plans of the Secretary to implement an enrollment-based capitation methodology for military medical treatment facilities and with respect to contracts for the delivery of health care under the TRICARE program.

      (2) The justifications for implementing an enrollment-based capitation methodology without first conducting a demonstration project for implementation of such methodology.

      (3) The impact that implementation of an enrollment-based capitation methodology would have on the provision of space-available care at military medical treatment facilities, particularly in the case of care for--

        (A) military retirees who are entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.); and

        (B) covered beneficiaries under chapter 55 of title 10, United States Code, who reside outside the catchment area of a military medical treatment facility.

      (4) The impact that implementation of an enrollment-based capitation methodology would have with respect to the pharmacy benefits provided at military medical treatment facilities, given that the enrollment-based capitation methodology would fund military medical treatment facilities based on the number of members at such facilities enrolled in TRICARE Prime, but all covered beneficiaries may fill prescriptions at military medical treatment facility pharmacies.

      (5) An explanation of how additional funding will be provided for a military medical treatment facility if an enrollment-based capitation methodology is implemented to ensure that space-available care and pharmacy coverage can be provided to covered beneficiaries who are not enrolled at the military medical treatment facility, and the amount of funding that will be available.

      (6) An explanation of how implementation of an enrollment-based capitation methodology would impact the provision of uniform benefits under TRICARE Prime, and how the Secretary would ensure, if such methodology were implemented, that the provision of health care under TRICARE Prime would not be bifurcated between the provision of such care at military medical treatment facilities and the provision of such care from civilian providers.

    (b) DEADLINE FOR SUBMISSION- The Secretary shall submit the report required by subsection (a) not later than March 1, 1999.

SEC. 745. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS AFFAIRS REPORTS RELATING TO INTERDEPARTMENTAL COOPERATION IN THE DELIVERY OF MEDICAL CARE.

    (a) FINDINGS- Congress makes the following findings:

      (1) The military health care system of the Department of Defense and the Veterans Health Administration of the Department of Veterans Affairs are national institutions that collectively manage more than 1,500 hospitals, clinics, and health care facilities worldwide to provide services to more than 11,000,000 beneficiaries.

      (2) In the post-Cold War era, these institutions are in a profound transition that involves challenging opportunities.

      (3) During the period from 1988 to 1998, the number of military medical personnel has declined by 15 percent and the number of military hospitals has been reduced by one-third.

      (4) During the 2 years since 1996, the Department of Veterans Affairs has revitalized its structure by decentralizing authority into 22 Veterans Integrated Service Networks.

      (5) In the face of increasing costs of medical care, increased demands for health care services, and increasing budgetary constraints, the Department of Defense and the Department of Veterans Affairs have embarked on a variety of dynamic and innovative cooperative programs ranging from shared services to joint venture operations of medical facilities.

      (6) In 1984, there was a combined total of 102 Department of Veterans Affairs and Department of Defense facilities with sharing agreements. By 1997, that number had grown to 420. During the six years from fiscal year 1992 through fiscal year 1997, shared services increased from slightly over 3,000 services to more than 6,000 services, ranging from major medical and surgical services, laundry, blood, and laboratory services to unusual speciality care services.

      (7) The Department of Defense and the Department of Veterans Affairs are conducting four health care joint ventures in New Mexico, Nevada, Texas, and Oklahoma, and are planning to conduct four more such ventures in Alaska, Florida, Hawaii, and California.

    (b) SENSE OF CONGRESS- It is the sense of Congress that--

      (1) the Department of Defense and the Department of Veterans Affairs should be commended for the cooperation between the two departments in the delivery of medical care, of which the cooperation involved in the establishment and operation of the Department of Defense and the Department of Veterans Affairs Executive Council is a praiseworthy example;

      (2) the Department of Defense and the Department of Veterans Affairs are encouraged to continue to explore new opportunities to enhance the availability and delivery of medical care to beneficiaries by further enhancing the cooperative efforts of the departments; and

      (3) enhanced cooperation between the Department of Defense and the Department of Veterans Affairs is encouraged regarding--

        (A) the general areas of access to quality medical care, identification and elimination of impediments to enhanced cooperation, and joint research and program development; and

        (B) the specific areas in which there is significant potential to achieve progress in cooperation in a short term, including computerization of patient records systems, participation of the Department of Veterans Affairs in the TRICARE program, pharmaceutical programs, and joint physical examinations.

    (c) JOINT SURVEY OF POPULATIONS SERVED- (1) The Secretary of Defense and the Secretary of Veterans Affairs shall jointly conduct a survey of their respective medical care beneficiary populations to identify, by category of beneficiary (defined as the Secretaries consider appropriate), the expectations of, requirements for, and behavior patterns of the beneficiaries with respect to medical care. The two Secretaries shall develop the protocol for the survey jointly, but shall obtain the services of an entity independent of the Department of Defense and the Department of Veterans Affairs to carry out the survey.

    (2) The survey shall include the following:

      (A) Demographic characteristics, economic characteristics, and geographic location of beneficiary populations with regard to catchment or service areas.

      (B) The types and frequency of care required by veterans, retirees, and dependents within catchment or service areas of Department of Defense and Department of Veterans Affairs medical facilities and outside those areas.

      (C) The numbers of, characteristics of, and types of medical care needed by the veterans, retirees, and dependents who, though eligible for medical care in Department of Defense or Department of Veterans Affairs treatment facilities or through other federally funded medical programs, choose not to seek medical care from those facilities or under those programs, and the reasons for that choice.

      (D) The obstacles or disincentives for seeking medical care from such facilities or under such programs that are perceived by veterans, retirees, and dependents.

      (E) Any other matters that the Secretary of Defense and the Secretary of Veterans Affairs consider appropriate for the survey.

    (3) The Secretary of Defense or the Secretary of Veterans Affairs may waive the survey requirements under this subsection with respect to information that can be better obtained from a source other than the survey.

    (4) The Secretary of Defense and the Secretary of Veterans Affairs shall submit a report on the results of the survey to the appropriate committees of Congress. The report shall contain the matters described in paragraph (2) and any proposals for legislation that the Secretaries recommend for enhancing Department of Defense and Department of Veterans Affairs cooperative efforts with respect to the delivery of medical care.

    (d) REVIEW OF LAW AND POLICIES- (1) The Secretary of Defense and the Secretary of Veterans Affairs shall jointly conduct a review to identify impediments to cooperation between the Department of Defense and the Department of Veterans Affairs regarding the delivery of medical care. The matters reviewed shall include the following:

      (A) All laws, policies, and regulations, and any attitudes of beneficiaries of the health care systems of the two departments, that have the effect of preventing the establishment, or limiting the effectiveness, of cooperative health care programs of the departments.

      (B) The requirements and practices involved in the credentialling and licensure of health care providers.

      (C) The perceptions of beneficiaries in a variety of categories (defined as the Secretaries consider appropriate) regarding the various Federal health care systems available for their use.

      (D) The types and frequency of medical services furnished by the Department of Defense and the Department of Veterans Affairs through cooperative arrangements to each category of beneficiary (including active-duty members, retirees, dependents, veterans in the health-care eligibility categories referred to as Category A and Category C, and persons authorized to receive medical care under section 1713 of title 38, United States Code) of the other department.

      (E) The extent to which health care facilities of the Department of Defense and Department of Veterans Affairs have sufficient capacity, or could jointly or individually create sufficient capacity, to provide services to beneficiaries of the other department without diminution of access or services to their primary beneficiaries.

      (F) The extent to which the recruitment of scarce medical specialists and allied health personnel by the Department of Defense and the Department of Veterans Affairs could be enhanced through cooperative arrangements for providing health care services.

      (G) The obstacles and disincentives to providing health care services through cooperative arrangements between the Department of Defense and the Department of Veterans Affairs.

    (2) The Secretaries shall jointly submit a report on the results of the review to the appropriate committees of Congress. The report shall include any proposals for legislation that the Secretaries recommend for eliminating or reducing impediments to interdepartmental cooperation that are identified during the review.

    (e) PARTICIPATION IN TRICARE- (1) The Secretary of Defense shall review the TRICARE program to identify opportunities for increased participation by the Department of Veterans Affairs in that program. The ongoing collaboration between Department of Defense officials and Department of Veterans Affairs officials regarding increased participation shall be included among the matters reviewed.

    (2) The Secretary of Defense and the Secretary of Veterans Affairs shall jointly submit to the appropriate committees of Congress a semiannual report on the status of the review under this subsection and on efforts to increase the participation of the Department of Veterans Affairs in the TRICARE program. No report is required under this paragraph after the submission of a semiannual report in which the Secretaries declare that the Department of Veterans Affairs is participating in the TRICARE program to the extent that can reasonably be expected to be attained.

    (f) PHARMACEUTICAL BENEFITS AND PROGRAMS- (1) The Department of Defense-Department of Veterans Affairs Federal Pharmacy Executive Steering Committee shall--

      (A) undertake a comprehensive examination of existing pharmaceutical benefits and programs for beneficiaries of Department of Defense medical care programs, including matters relating to the purchasing, distribution, and dispensing of pharmaceuticals and the management of mail order pharmaceuticals programs; and

      (B) review the existing methods for contracting for and distributing medical supplies and services.

    (2) The committee shall submit a report on the results of the examination to the appropriate committees of Congress.

    (g) STANDARDIZATION OF PHYSICAL EXAMINATIONS FOR DISABILITY- The Secretary of Defense and the Secretary of Veterans Affairs shall jointly submit to the appropriate committees of Congress a report on the status of the efforts of the Department of Defense and the Department of Veterans Affairs to standardize physical examinations administered by the two departments for the purpose of determining or rating disabilities.

    (h) APPROPRIATE COMMITTEES OF CONGRESS DEFINED- For the purposes of this section, the appropriate committees of Congress are as follows:

      (1) The Committee on Armed Services and the Committee on Veterans’ Affairs of the Senate.

      (2) The Committee on National Security and the Committee on Veterans’ Affairs of the House of Representatives.

    (i) DEADLINES FOR SUBMISSION OF REPORTS- (1) The report required by subsection (c)(3) shall be submitted not later than January 1, 2000.

    (2) The report required by subsection (d)(2) shall be submitted not later than March 1, 1999.

    (3) The semiannual report required by subsection (e)(2) shall be submitted not later than March 1 and September 1 of each year.

    (4) The report on the examination required under subsection (f) shall be submitted not later than 60 days after the completion of the examination.

    (5) The report required by subsection (g) shall be submitted not later than March 1, 1999.

SEC. 746. REPORT ON RESEARCH AND SURVEILLANCE ACTIVITIES REGARDING LYME DISEASE AND OTHER TICK-BORNE DISEASES.

    Not later than April 1, 1999, the Secretary of Defense shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report on the current and recommended levels of research and surveillance activities regarding Lyme disease and other tick-borne diseases among members of the Armed Forces. The report shall include the following:

      (1) An analysis of the current and projected threat to the operational readiness of the Armed Forces posed by Lyme disease and other tick-borne diseases in the United States and in overseas locations at which members of the Armed Forces might be deployed.

      (2) A review of the current research efforts being implemented to prevent the contraction of Lyme disease and other tick-borne diseases by members of the Armed Forces, and to enhance the early identification of such diseases once they have been contracted.

      (3) An assessment of the adequacy of existing and projected funding levels for research and surveillance activities relating to Lyme disease and other tick-borne diseases among members of the Armed Forces.

      (4) The recommended funding levels necessary to address the threats posed to the operational readiness of the Armed Forces by Lyme disease and other tick-borne diseases.

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

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

      Sec.801.Limitation on use of price preference upon achievement of contract goal for small and disadvantaged businesses.

      Sec.802.Distribution of assistance under the Procurement Technical Assistance Cooperative Agreement Program.

      Sec.803.Defense commercial pricing management improvement.

      Sec.804.Modification of senior executives covered by limitation on allowability of compensation for certain contractor personnel.

      Sec.805.Separate determinations of exceptional waivers of truth in negotiation requirements for prime contracts and subcontracts.

      Sec.806.Procurement of conventional ammunition.

      Sec.807.Para-aramid fibers and yarns.

      Sec.808.Clarification of responsibility for submission of information on prices previously charged for property or services offered.

      Sec.809.Amendments and study relating to procurement from firms in industrial base for production of small arms.

Subtitle B--Other Matters

      Sec.811.Eligibility of involuntarily downgraded employee for membership in an acquisition corps.

      Sec.812.Time for submission of annual report relating to Buy American Act.

      Sec.813.Procurement of travel services for official and unofficial travel under one contract.

      Sec.814.Department of Defense purchases through other agencies.

      Sec.815.Supervision of defense acquisition university structure by Under Secretary of Defense for Acquisition and Technology.

      Sec.816.Pilot programs for testing program manager performance of product support oversight responsibilities for life cycle of acquisition programs.

      Sec.817.Scope of protection of certain information from disclosure.

      Sec.818.Plan for rapid transition from completion of small business innovation research into defense acquisition programs.

      Sec.819.Five-year authority for Secretary of the Navy to exchange certain items.

      Sec.820.Permanent authority for use of major range and test facility installations by commercial entities.

      Sec.821.Inventory exchange authorized for certain fuel delivery contract.

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

SEC. 801. LIMITATION ON USE OF PRICE PREFERENCE UPON ACHIEVEMENT OF CONTRACT GOAL FOR SMALL AND DISADVANTAGED BUSINESSES.

    Section 2323(e)(3) of title 10, United States Code, is amended--

      (1) by inserting ‘(A)’ after ‘(3)’;

      (2) by inserting ‘, except as provided in subparagraph (B),’ after ‘the head of an agency may’ in the first sentence; and

      (3) by adding at the end the following:

      ‘(B)(i) The Secretary of Defense may not exercise the authority under subparagraph (A) to enter into a contract for a price exceeding fair market cost if the regulations implementing that authority are suspended under clause (ii) with respect to that contract.

      ‘(ii) At the beginning of each fiscal year, the Secretary shall determine, on the basis of the most recent data, whether the Department of Defense achieved the 5 percent goal described in subsection (a) during the fiscal year to which the data relates. Upon determining that the Department achieved the goal for the fiscal year to which the data relates, the Secretary shall issue a suspension, in writing, of the regulations that implement the authority under subparagraph (A). Such a suspension shall be in effect for the one-year period beginning 30 days after the date on which the suspension is issued and shall apply with respect to contracts awarded pursuant to solicitations issued during that period.

      ‘(iii) For purposes of clause (ii), the term ‘most recent data’ means data relating to the most recent fiscal year for which data are available.’.

SEC. 802. DISTRIBUTION OF ASSISTANCE UNDER THE PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT PROGRAM.

    (a) CORRECTION OF DESCRIPTION OF GEOGRAPHIC UNIT- (1) Section 2413(c) of title 10, United States Code, is amended by striking out ‘region’ and inserting in lieu thereof ‘district’.

    (2) Section 2415 of such title is amended--

      (A) by striking out ‘region’ and inserting in lieu thereof ‘district’ each place it appears; and

      (B) by striking out ‘regions’ and inserting in lieu thereof ‘districts’.

    (b) TECHNICAL AMENDMENT- Section 2415 of such title is amended by striking out ‘Defense Contract Administrative Services’ and inserting in lieu thereof ‘Department of Defense contract administrative services’.

SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    (a) MODIFICATION OF PRICING REGULATIONS FOR CERTAIN COMMERCIAL ITEMS EXEMPT FROM COST OR PRICING DATA CERTIFICATION REQUIREMENTS- (1) The Federal Acquisition Regulation issued in accordance with sections 6 and 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 405, 421) shall be revised to clarify the procedures and methods to be used for determining the reasonableness of prices of exempt commercial items (as defined in subsection (d)).

    (2) The regulations shall, at a minimum, provide specific guidance on--

      (A) the appropriate application and precedence of such price analysis tools as catalog-based pricing, market-based pricing, historical pricing, parametric pricing, and value analysis;

      (B) the circumstances under which contracting officers should require offerors of exempt commercial items to provide--

        (i) information on prices at which the offeror has previously sold the same or similar items; or

        (ii) other information other than certified cost or pricing data;

      (C) the role and responsibility of Department of Defense support organizations in procedures for determining price reasonableness; and

      (D) the meaning and appropriate application of the term ‘purposes other than governmental purposes’ in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)).

    (3) This subsection shall cease to be effective 1 year after the date on which final regulations prescribed pursuant to paragraph (1) take effect.

    (b) UNIFIED MANAGEMENT OF PROCUREMENT OF EXEMPT COMMERCIAL ITEMS- The Secretary of Defense shall develop and implement procedures to ensure that, whenever appropriate, a single item manager or contracting officer is responsible for negotiating and entering into all contracts from a single contractor for the procurement of exempt commercial items or for the procurement of items in a category of exempt commercial items.

    (c) COMMERCIAL PRICE TREND ANALYSIS- (1) The Secretary of Defense shall develop and implement procedures that, to the maximum extent that is practicable and consistent with the efficient operation of the Department of Defense, provide for the collection and analysis of information on price trends for categories of exempt commercial items described in paragraph (2).

    (2) A category of exempt commercial items referred to in paragraph (1) consists of exempt commercial items--

      (A) that are in a single Federal Supply Group or Federal Supply Class, are provided by a single contractor, or are otherwise logically grouped for the purpose of analyzing information on price trends; and

      (B) for which there is a potential for the price paid to be significantly higher (on a percentage basis) than the prices previously paid in procurements of the same or similar items for the Department of Defense, as determined by the head of the procuring Department of Defense agency or the Secretary of the procuring military department on the basis of criteria prescribed by the Secretary of Defense.

    (3) The head of a Department of Defense agency or the Secretary of a military department shall take appropriate action to address any unreasonable escalation in prices being paid for items procured by that agency or military department as identified in an analysis conducted pursuant to paragraph (1).

    (4) Not later than April 1 of each of fiscal years 2000, 2001, and 2002, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the analyses of price trends that were conducted for categories of exempt commercial items during the preceding fiscal year under the procedures prescribed pursuant to paragraph (1). The report shall include a description of the actions taken to identify and address any unreasonable price escalation for the categories of items.

    (d) EXEMPT COMMERCIAL ITEMS DEFINED- For the purposes of this section, the term ‘exempt commercial item’ means a commercial item that is exempt under subsection (b)(1)(B) of section 2306a of title 10, United States Code, or subsection (b)(1)(B) of section 304A of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b), from the requirements for submission of certified cost or pricing data under that section.

SEC. 804. MODIFICATION OF SENIOR EXECUTIVES COVERED BY LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN CONTRACTOR PERSONNEL.

    (a) ARMED SERVICES ACQUISITIONS- Section 2324(l)(5) of title 10, United States Code, is amended to read as follows:

      ‘(5) The term ‘senior executives’, with respect to a contractor, means the five most highly compensated employees in management positions at each home office and each segment of the contractor.’.

    (b) CIVILIAN AGENCY ACQUISITIONS- Section 306(m)(2) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256(m)(2)) is amended to read as follows:

      ‘(2) The term ‘senior executives’, with respect to a contractor, means the five most highly compensated employees in management positions at each home office and each segment of the contractor.’.

    (c) CONFORMING AMENDMENTS- (1) Section 39(c)(2) of the Office of Federal Procurement Policy Act (41 U.S.C. 435(c)(2)) is amended to read as follows:

      ‘(2) The term ‘senior executives’, with respect to a contractor, means the five most highly compensated employees in management positions at each home office and each segment of the contractor.’.

    (2) Section 808(g)(2) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1838) is amended by striking out ‘senior executive’ and inserting in lieu thereof ‘senior executives’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply with respect to costs of compensation of senior executives incurred after January 1, 1999, under covered contracts (as defined in section 2324(l) of title 10, United States Code, and section 306(l) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C.256(l)) entered into before, on, or after the date of the enactment of this Act.

SEC. 805. SEPARATE DETERMINATIONS OF EXCEPTIONAL WAIVERS OF TRUTH IN NEGOTIATION REQUIREMENTS FOR PRIME CONTRACTS AND SUBCONTRACTS.

    (a) ARMED SERVICES ACQUISITIONS- Section 2306a(a)(5) of title 10, United States Code, is amended to read as follows:

    ‘(5) A waiver of requirements for submission of certified cost or pricing data that is granted under subsection (b)(1)(C) in the case of a contract or subcontract does not waive the requirement under paragraph (1)(C) for submission of cost or pricing data in the case of subcontracts under that contract or subcontract unless the head of the procuring activity granting the waiver determines that the requirement under that paragraph should be waived in the case of such subcontracts and justifies in writing the reasons for the determination.’.

    (b) CIVILIAN AGENCY ACQUISITIONS- Section 304A(a)(5) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b(a)(5)) is amended to read as follows:

    ‘(5) A waiver of requirements for submission of certified cost or pricing data that is granted under subsection (b)(1)(C) in the case of a contract or subcontract does not waive the requirement under paragraph (1)(C) for submission of cost or pricing data in the case of subcontracts under that contract or subcontract unless the head of the procuring activity granting the waiver determines that the requirement under that paragraph should be waived in the case of such subcontracts and justifies in writing the reasons for the determination.’.

SEC. 806. PROCUREMENT OF CONVENTIONAL AMMUNITION.

    (a) AUTHORITY- The official in the Department of Defense designated as the single manager for conventional ammunition in the Department shall have the authority to restrict the procurement of conventional ammunition to sources within the national technology and industrial base in accordance with the authority in section 2304(c) of title 10, United States Code.

    (b) REQUIREMENT- The official in the Department of Defense designated as the single manager for conventional ammunition in the Department of Defense shall limit a specific procurement of ammunition to sources within the national technology and industrial base in accordance with section 2304(c)(3) of title 10, United States Code, in any case in which that manager determines that such limitation is necessary to maintain a facility, producer, manufacturer, or other supplier available for furnishing an essential item of ammunition or ammunition component in cases of national emergency or to achieve industrial mobilization.

    (c) CONVENTIONAL AMMUNITION DEFINED- For purposes of this section, the term ‘conventional ammunition’ has the meaning given that term in Department of Defense Directive 5160.65, dated March 8, 1995.

SEC. 807. PARA-ARAMID FIBERS AND YARNS.

    (a) AUTHORITY- The Secretary of Defense may procure articles containing para-aramid fibers and yarns manufactured in a foreign country referred to in subsection (d) if the Secretary determines that--

      (1) procuring articles that contain only para-aramid fibers and yarns manufactured from suppliers within the national technology and industrial base would result in sole-source contracts or subcontracts for the supply of such para-aramid fibers and yarns; and

      (2) such sole-source contracts or subcontracts would not be in the best interests of the Government or consistent with the objectives of section 2304 of title 10, United States Code.

    (b) SUBMISSION TO CONGRESS- Not later than 30 days after making a determination under subsection (a), the Secretary shall submit to Congress a copy of the determination.

    (c) APPLICABILITY TO SUBCONTRACTS- The authority under subsection (a) applies with respect to subcontracts under Department of Defense contracts as well as to such contracts.

    (d) FOREIGN COUNTRIES COVERED- The authority under subsection (a) applies with respect to a foreign country that--

      (1) is a party to a defense memorandum of understanding entered into under section 2531 of this title; and

      (2) permits United States firms that manufacture para-aramid fibers and yarns to compete with foreign firms for the sale of para-aramid fibers and yarns in that country, as determined by the Secretary of Defense.

    (e) DEFINITION- In this section, the term ‘national technology and industrial base’ has the meaning given that term in section 2500 of title 10, United States Code.

SEC. 808. CLARIFICATION OF RESPONSIBILITY FOR SUBMISSION OF INFORMATION ON PRICES PREVIOUSLY CHARGED FOR PROPERTY OR SERVICES OFFERED.

    (a) ARMED SERVICES PROCUREMENTS- Section 2306a(d)(1) of title 10, United States Code, is amended by striking out ‘the data submitted shall’ in the second sentence and inserting in lieu thereof the following: ‘the contracting officer shall require that the data submitted’.

    (b) CIVILIAN AGENCY PROCUREMENTS- Section 304A(d)(1) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b(d)(1)), is amended by striking out ‘the data submitted shall’ in the second sentence and inserting in lieu thereof the following: ‘the contracting officer shall require that the data submitted’.

    (c) ELIGIBILITY FOR CONTRACTS AND SUBCONTRACTS TO BE CONDITIONED ON COMPLIANCE- Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to provide that an offeror’s compliance with a requirement to submit data for a contract or subcontract in accordance with section 2306a(d)(1) of title 10, United States Code, or section 304A(d)(1) of the Federal Property and Administrative Services Act of 1949 shall be a condition for the offeror to be eligible to enter into the contract or subcontract, subject to such exceptions as the Federal Acquisition Regulatory Council determines appropriate.

    (d) CRITERIA FOR CERTAIN DETERMINATIONS- Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to include criteria for contracting officers to apply for determining the specific price information that an offeror should be required to submit under section 2306a(d) of title 10, United States Code, or section 304A(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254b(d)).

SEC. 809. AMENDMENTS AND STUDY RELATING TO PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR PRODUCTION OF SMALL ARMS.

    (a) REQUIREMENT TO LIMIT PROCUREMENTS TO CERTAIN SOURCES- Subsection (a) of section 2473 of title 10, United States Code, is amended--

      (1) in the heading, by striking out the first word and inserting in lieu thereof ‘REQUIREMENT’;

      (2) by striking out ‘To the extent that the Secretary of Defense determines necessary to preserve the small arms production industrial base, the Secretary may’ and inserting in lieu thereof ‘In order to preserve the small arms production industrial base, the Secretary of Defense shall’; and

      (3) by inserting before the period at the end the following: ‘, unless the Secretary determines, with regard to a particular procurement, that such requirement is not necessary to preserve the small arms production industrial base’.

    (b) SPECIFICATION OF INCLUDED REPAIR PARTS- Subsection (b) of such section is amended in paragraph (1) by inserting before the period the following: ‘, including repair parts consisting of barrels, receivers, and bolts’.

    (c) APPLICABILITY OF REQUIREMENT- Such section is further amended--

      (1) in subsection (b), by striking out ‘Subsection’ and inserting in lieu thereof ‘Subject to subsection (d), subsection’; and

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

    ‘(d) APPLICABILITY- This section applies only to procurements of covered property and services involving the following small arms:

      ‘(1) M16 series rifle.

      ‘(2) MK19 grenade machine gun.

      ‘(3) M4 series carbine.

      ‘(4) M240 series machine gun.

      ‘(5) M249 squad automatic weapon.’.

    (d) SUBMISSION OF CERTIFIED COST OR PRICING DATA- Such section is further amended by adding at the end the following new subsection:

    ‘(e) SUBMISSION OF CERTIFIED COST OR PRICING DATA- If a procurement under subsection (a) is a procurement of a commercial item, the Secretary may, notwithstanding section 2306a(b)(1)(B) of this title, require the submission of certified cost or pricing data under section 2306a(a) of this title.’.

    (e) STUDY- Not later than 60 days after the date of the enactment of this Act, the Secretary of the Army shall conduct a study, to be carried out by the Army Science Board, to examine whether the requirements of section 2473 of title 10, United States Code, should be extended to small arms (as specified in subsection (d) of such section) and the parts manufactured under a contract with the Department of Defense to produce such small arms.

    (f) AUTHORITY TO EXTEND REQUIREMENTS OF SECTION 2473- Based upon recommendations of the Army Science Board resulting from the study conducted under subsection (e), the Secretary of the Army may apply the requirements of section 2473 of title 10, United States Code, to the small arms and parts referred to in subsection (e).

Subtitle B--Other Matters

SEC. 811. ELIGIBILITY OF INVOLUNTARILY DOWNGRADED EMPLOYEE FOR MEMBERSHIP IN AN ACQUISITION CORPS.

    Section 1732(c) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    ‘(3) Paragraph (1) of subsection (b) shall not apply to an employee who--

      ‘(A) having previously served in a position within a grade referred to in subparagraph (A) of that paragraph, is currently serving in the same position within a grade below GS-13 of the General Schedule, or in another position within that grade, by reason of a reduction in force or the closure or realignment of a military installation, or for any other reason other than by reason of an adverse personnel action for cause; and

      ‘(B) except as provided in paragraphs (1) and (2), satisfies the educational, experience, and other requirements prescribed under paragraphs (2), (3), and (4) of that subsection.’.

SEC. 812. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN ACT.

    Section 827 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C. 10b-3) is amended by striking out ‘90 days’ and inserting in lieu thereof ‘60 days’.

SEC. 813. PROCUREMENT OF TRAVEL SERVICES FOR OFFICIAL AND UNOFFICIAL TRAVEL UNDER ONE CONTRACT.

    (a) AUTHORITY- Chapter 157 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2646. Travel services: procurement for official and unofficial travel under one contract

    ‘(a) AUTHORITY- The head of an agency may enter into a contract for travel-related services that provides for the contractor to furnish services for both official travel and unofficial travel.

    ‘(b) CREDITS, DISCOUNTS, COMMISSIONS, FEES- (1) A contract entered into under this section may provide for credits, discounts, or commissions or other fees to accrue to the Department of Defense. The accrual and amounts of credits, discounts, or commissions or other fees may be determined on the basis of the volume (measured in the number or total amount of transactions or otherwise) of the travel-related sales that are made by the contractor under the contract.

    ‘(2) The evaluation factors applicable to offers for a contract under this section may include a factor that relates to the estimated aggregate value of any credits, discounts, commissions, or other fees that would accrue to the Department of Defense for the travel-related sales made under the contract.

    ‘(3) Commissions or fees received by the Department of Defense as a result of travel-related sales made under a contract entered into under this section shall be distributed as follows:

      ‘(A) For amounts relating to sales for official travel, credit to appropriations available for official travel for the fiscal year in which the amounts were charged.

      ‘(B) For amounts relating to sales for unofficial travel, deposit in nonappropriated fund accounts available for morale, welfare, and recreation programs.

    ‘(c) DEFINITIONS- In this section:

      ‘(1) The term ‘head of an agency’ has the meaning given that term in section 2302(1) of this title.

      ‘(2) The term ‘official travel’ means travel at the expense of the Federal Government.

      ‘(3) The term ‘unofficial travel’ means personal travel or other travel that is not paid for or reimbursed by the Federal Government out of appropriated funds.

    ‘(d) INAPPLICABILITY TO COAST GUARD AND NASA- This section does not apply to the Coast Guard when it is not operating as a service in the Navy, nor to the National Aeronautics and Space Administration.’.

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

      ‘2646. Travel services: procurement for official and unofficial travel under one contract.’.

SEC. 814. DEPARTMENT OF DEFENSE PURCHASES THROUGH OTHER AGENCIES.

    (a) EXTENSION OF REGULATIONS- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall revise the regulations issued pursuant to section 844 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1720; 31 U.S.C. 1535 note) to--

      (1) cover any purchase described in subsection (b) that is greater than the micro-purchase threshold; and

      (2) provide for a streamlined method of compliance for any such purchase that is not greater than the simplified acquisition threshold.

    (b) DESCRIPTION OF PURCHASES- A purchase referred to in subsection (a) is a purchase of goods or services for one agency of the Department of Defense by any other agency under a task or delivery order contract entered into by the other agency under section 2304a of title 10, United States Code, or section 303H of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h).

    (c) DEFINITIONS- In this section:

      (1) The term ‘micro-purchase threshold’ has the meaning provided in section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428).

      (2) The term ‘simplified acquisition threshold’ has the meaning provided in section 4 of such Act (41 U.S.C. 403).

    (d) TERMINATION- This section shall cease to be effective 1 year after the date on which final regulations prescribed pursuant to subsection (a) take effect.

SEC. 815. SUPERVISION OF DEFENSE ACQUISITION UNIVERSITY STRUCTURE BY UNDER SECRETARY OF DEFENSE FOR ACQUISITION AND TECHNOLOGY.

    Section 1702 of title 10, United States Code, is amended by adding at the end the following: ‘The Under Secretary shall prescribe policies and requirements for the educational programs of the defense acquisition university structure established under section 1746 of this title.’.

SEC. 816. PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION PROGRAMS.

    (a) DESIGNATION OF PILOT PROGRAMS- The Secretary of Defense, acting through the Secretaries of the military departments, shall designate 10 acquisition programs of the military departments as pilot programs on program manager responsibility for product support.

    (b) RESPONSIBILITIES OF PROGRAM MANAGERS- The program manager for each acquisition program designated as a pilot program under this section shall have the responsibility for ensuring that the product support functions for the program are properly carried out over the entire life cycle of the program.

    (c) REPORT- Not later than February 1, 1999, the Secretary of Defense shall submit to the congressional defense committees a report on the pilot programs. The report shall contain the following:

      (1) A description of the acquisition programs designated as pilot programs under subsection (a).

      (2) For each such acquisition program, the specific management actions taken to ensure that the program manager has the responsibility for oversight of the performance of the product support functions.

      (3) Any proposed change to law, policy, regulation, or organization that the Secretary considers desirable, and determines feasible to implement, for ensuring that the program managers are fully responsible under the pilot programs for the performance of all such responsibilities.

SEC. 817. SCOPE OF PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

    Section 2371(i)(2)(A) of title 10, United States Code, is amended by striking out ‘cooperative agreement that includes a clause described in subsection (d)’ and inserting in lieu thereof ‘cooperative agreement for performance of basic, applied, or advanced research authorized by section 2358 of this title’.

SEC. 818. PLAN FOR RAPID TRANSITION FROM COMPLETION OF SMALL BUSINESS INNOVATION RESEARCH INTO DEFENSE ACQUISITION PROGRAMS.

    (a) PLAN REQUIRED- (1) Not later than February 1, 1999, the Secretary of Defense, in consultation with the Administrator of the Small Business Administration, shall develop a plan for facilitating the rapid transition into Department of Defense acquisition programs of successful first phase and second phase activities under the Small Business Innovation Research program under section 9 of the Small Business Act (15 U.S.C. 638).

    (2) The Secretary shall submit the plan developed under paragraph (1) to--

      (A) the Committee on Armed Services and the Committee on Small Business of the Senate; and

      (B) the Committee on National Security and the Committee on Small Business of the House of Representatives.

    (b) CONDITIONS- The plan developed under subsection (a) shall--

      (1) be consistent with the Small Business Innovation Research program and with the provisions of division D of the Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 110 Stat. 642) and the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3243) that are applicable to the Department of Defense; and

      (2) provide for favorable consideration, in the acquisition planning process, for funding projects under the Small Business Innovation Research program that have successfully completed the second phase or are subject to a third phase agreement entered into pursuant to section 9(r) of the Small Business Act (15 U.S.C. 638(r)).

SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO EXCHANGE CERTAIN ITEMS.

    (a) BARTER AUTHORITY- The Secretary of the Navy may enter into a barter agreement to convey trucks and other tactical vehicles in exchange for the repair and remanufacture of ribbon bridges for the Marine Corps. The Secretary shall enter into any such agreement in accordance with section 201(c) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481(c)), and the regulations issued under such section, except that the requirement that the items to be exchanged be similar shall not apply to the authority provided under this subsection.

    (b) PERIOD OF AUTHORITY- The authority to enter into agreements under subsection (a) and to make exchanges under any such agreement is effective during the 5-year period beginning on October 1, 1998.

SEC. 820. PERMANENT AUTHORITY FOR USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY COMMERCIAL ENTITIES.

    (a) PERMANENT AUTHORITY- Subsection (g) of section 2681 of title 10, United States Code, is repealed.

    (b) REPEAL OF EXECUTED REPORTING REQUIREMENT- Subsection (h) of such section is repealed.

SEC. 821. INVENTORY EXCHANGE AUTHORIZED FOR CERTAIN FUEL DELIVERY CONTRACT.

    (a) EXCHANGE OF BARRELS AUTHORIZED- (1) The Secretary of Defense shall provide, under a contract described in subsection (f), that the contract may be performed, during the period described in paragraph (2), by means of delivery of fuel obtained by the refiner concerned in an inventory exchange of barrels of fuel, in any case in which--

      (A) the refiner is unable to physically deliver fuel in compliance with the contract requirements because of ice conditions in Cook Inlet, as determined by the Coast Guard; and

      (B) the Secretary determines that such inability will result in an inequity to the refiner.

    (2) The period referred to in paragraph (1) is the period beginning on the date of the enactment of this Act and ending on February 28, 1999.

    (b) LIMITATION- The number of barrels of fuel exchanged pursuant to a contract described in subsection (f) may contain up to 15 percent of the total quantity of fuel required to be delivered under the contract.

    (c) EFFECT ON STATUS AS SMALL DISADVANTAGED BUSINESS- Nothing in this section, and no action taken pursuant to this section, may be construed as affecting the status of the refiner as a small disadvantaged business.

    (d) EFFECT ON CONTRACTUAL OBLIGATIONS- Nothing in this section may be construed as affecting the requirement of a refiner to fulfill its contractual obligations under a contract described in subsection (e), other than as provided under subsection (b).

    (e) SMALL DISADVANTAGED BUSINESS DEFINED- For the purposes of this section, the term ‘small disadvantaged business’ means a socially and economically disadvantaged small business concern, a small business concern owned and controlled by socially and economically disadvantaged individuals, and a qualified HUBZone small business concern, as those terms are defined in sections 8(a)(4)(A), 8(d)(3)(C), and 3(p) of the Small Business Act (15 U.S.C. 637(a)(4)(A)), 637(d)(3)(C), and 632(p)), respectively.

    (f) APPLICABILITY- This section applies to any contract between the Defense Energy Supply Center of the Department of Defense and a refiner that qualifies as a small disadvantaged business for the delivery of fuel by barge to Defense Energy Supply Point-Anchorage.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Officers and Organization

      Sec.901.Reduction in number of Assistant Secretary of Defense positions.

      Sec.902.Repeal of statutory requirement for position of Assistant Secretary of Defense for Command, Control, Communications, and Intelligence.

      Sec.903.Independent task force on transformation and Department of Defense organization.

      Sec.904.Authority to expand the National Defense University.

      Sec.905.Center for Hemispheric Defense Studies.

      Sec.906.Restructuring of administration of Fisher Houses.

      Sec.907.Management reform for research, development, test, and evaluation activities.

Subtitle B--Department of Defense Financial Management

      Sec.911.Improved accounting for defense contract services.

      Sec.912.Report on Department of Defense financial management improvement plan.

      Sec.913.Study of feasibility of performance of Department of Defense finance and accounting functions by private sector sources or other Federal sources.

      Sec.914.Limitation on reorganization and consolidation of operating locations of the Defense Finance and Accounting Service.

      Sec.915.Annual report on resources allocated to support and mission activities.

Subtitle C--Joint Warfighting Experimentation

      Sec.921.Findings concerning joint warfighting experimentation.

      Sec.922.Sense of Congress concerning joint warfighting experimentation.

      Sec.923.Reports on joint warfighting experimentation.

Subtitle D--Other Matters

      Sec.931.Further reductions in defense acquisition and support workforce.

      Sec.932.Limitation on operation and support funds for the Office of the Secretary of Defense.

      Sec.933.Clarification and simplification of responsibilities of Inspectors General regarding whistleblower protections.

      Sec.934.Repeal of requirement relating to assignment of tactical airlift mission to Reserve components.

      Sec.935.Consultation with Marine Corps on major decisions directly concerning Marine Corps aviation.

Subtitle A--Department of Defense Officers and Organization

SEC. 901. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE POSITIONS.

    (a) REDUCTION TO NINE POSITIONS- Section 138(a) of title 10, United States Code, is amended by striking out ‘ten’ and insert in lieu thereof ‘nine’.

    (b) CONFORMING AMENDMENT- Section 5315 of title 5, United States Code, is amended by striking out ‘(10)’ after ‘Assistant Secretaries of Defense’ and inserting in lieu thereof ‘(9)’.

SEC. 902. REPEAL OF STATUTORY REQUIREMENT FOR POSITION OF ASSISTANT SECRETARY OF DEFENSE FOR COMMAND, CONTROL, COMMUNICATIONS, AND INTELLIGENCE.

    Section 138(b) of title 10, United States Code is amended by striking out paragraph (3).

SEC. 903. INDEPENDENT TASK FORCE ON TRANSFORMATION AND DEPARTMENT OF DEFENSE ORGANIZATION.

    (a) FINDINGS- Congress finds the following:

      (1) The post-Cold War era is marked by geopolitical uncertainty and by accelerating technological change, particularly with regard to information technologies.

      (2) The combination of that geopolitical uncertainty and accelerating technological change portends a transformation in the conduct of war, particularly in ways that are likely to increase the effectiveness of joint operations.

      (3) The Department of Defense must be organized appropriately in order to fully exploit the opportunities offered by, and to meet the challenges posed by, this anticipated transformation in the conduct of war.

      (4) The basic organization of the Department of Defense was established by the National Security Act of 1947 and the 1949 amendments to that Act.

      (5) The Goldwater-Nichols Department of Defense Reorganization Act of 1986 (Public Law 99-433) dramatically improved the capability of the Department of Defense to carry out operations involving joint forces, but did not specifically address issues pertaining to the development of joint operations.

      (6) In the future, the ability to achieve improved operations of joint forces, particularly under rapidly changing technological conditions, will depend on improved force development for joint operations.

    (b) INDEPENDENT TASK FORCE ON TRANSFORMATION AND DEPARTMENT OF DEFENSE ORGANIZATION- The Secretary of Defense shall establish a task force of the Defense Science Board to examine the current organization of the Department of Defense with regard to the appropriateness of that organization for preparing for a transformation in the conduct of war. The task force shall be established not later than November 1, 1998.

    (c) DUTIES OF THE TASK FORCE- The task force shall assess, and shall make recommendations for the appropriate organization of, the Office of the Secretary of Defense, the Joint Chiefs of Staff, the individual Armed Forces, and the executive parts of the military departments for the purpose of preparing the Department of Defense for a transformation in the conduct of war. In making those assessments and developing those recommendations, the task force shall review the following:

      (1) The general organization of the Department of Defense, including whether responsibility and authority for issues relating to a transformation in the conduct of war are appropriately allocated, especially among the Office of the Secretary of Defense, the Joint Chiefs of Staff, and the individual Armed Forces.

      (2) The joint requirements process and the requirements processes for each of the Armed Forces, including the establishment of measures of effectiveness and methods for resource allocation.

      (3) The process and organizations responsible for doctrinal development, including the appropriate relationship between joint force and service doctrine and doctrinal development organizations.

      (4) The current programs and organizations under the Office of the Secretary of Defense, the Joint Chiefs of Staff, and the Armed Forces devoted to innovation and experimentation related to a transformation in the conduct of war, including the appropriateness of--

        (A) conducting joint field tests;

        (B) establishing a separate unified command as a joint forces command to serve, as its sole function, as the trainer, provider, and developer of forces for joint operations and for conducting joint warfighting experimentation;

        (C) establishing a separate Joint Concept Development Center to monitor exercises and develop measures of effectiveness, analytical concepts, models, and simulations appropriate for understanding the transformation in the conduct of war;

        (D) establishing a Joint Battle Laboratory to conduct joint experimentation and to integrate the similar efforts of the Armed Forces; and

        (E) establishing an Assistant Secretary of Defense responsible for transformation in the conduct of war.

      (5) Joint training establishments and training establishments of the Armed Forces, including those devoted to professional military education, and the appropriateness of establishing national training centers.

      (6) Other issues relating to a transformation in the conduct of war that the Secretary considers appropriate.

    (d) REPORT- The task force shall submit to the Secretary of Defense a report containing its assessments and recommendations not later than February 1, 1999. The Secretary shall submit the report to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate not later than March 1, 1999, together with the recommendations and comments of the Secretary of Defense.

SEC. 904. AUTHORITY TO EXPAND THE NATIONAL DEFENSE UNIVERSITY.

    Section 2165(b) of title 10, United States Code, is amended by adding at the end the following:

      ‘(7) Any other educational institution of the Department of Defense that the Secretary considers appropriate and designates as an institution of the university.’.

SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

    (a) FUNDING FOR CENTER- Section 2165 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(c) SOURCE OF FUNDS FOR CENTER FOR HEMISPHERIC DEFENSE STUDIES- Funds available for the payment of personnel expenses under the Latin American cooperation authority set forth in section 1050 of this title are also available for the costs of the operation of the Center for Hemispheric Defense Studies.’.

    (b) CONFORMING AMENDMENT- Section 1050 of such title is amended by inserting ‘Secretary of Defense or the’ before ‘Secretary of a military department’.

SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

    (a) ADMINISTRATION AS NONAPPROPRIATED FUND INSTRUMENTALITY- (1) Chapter 147 of title 10, United States Code, is amended by inserting after section 2492 (as added by section 365) the following new section:

‘Sec. 2493. Fisher Houses: administration as nonappropriated fund instrumentality

    ‘(a) FISHER HOUSES AND SUITES DEFINED- In this section:

      ‘(1) The term ‘Fisher House’ means a housing facility that--

        ‘(A) is located in proximity to a health care facility of the Army, the Air Force, or the Navy;

        ‘(B) is available for residential use on a temporary basis by patients of that health care facility, members of the families of such patients, and others providing the equivalent of familial support for such patients; and

        ‘(C) is constructed and donated by--

          ‘(i) the Zachary and Elizabeth M. Fisher Armed Services Foundation; or

          ‘(ii) another source, if the Secretary of the military department concerned designates the housing facility as a Fisher House.

      ‘(2) The term ‘Fisher Suite’ means one or more rooms that--

        ‘(A) meet the requirements of subparagraphs (A) and (B) of paragraph (1);

        ‘(B) are constructed, altered, or repaired and donated by a source described in subparagraph (C) of that paragraph; and

        ‘(C) are designated by the Secretary of the military department concerned as a Fisher Suite.

    ‘(b) NONAPPROPRIATED FUND INSTRUMENTALITY- The Secretary of each military department shall administer all Fisher Houses and Fisher Suites associated with health care facilities of that military department as a nonappropriated fund instrumentality of the United States.

    ‘(c) GOVERNANCE- The Secretary of each military department shall establish a system for the governance of the nonappropriated fund instrumentality required by subsection (b) for that military department.

    ‘(d) CENTRAL FUND- The Secretary of each military department shall establish a single fund as the source of funding for the operation, maintenance, and improvement of all Fisher Houses and Fisher Suites of the nonappropriated fund instrumentality required by subsection (b) for that military department.

    ‘(e) ACCEPTANCE OF CONTRIBUTIONS; IMPOSITION OF FEES- (1) The Secretary of a military department may--

      ‘(A) accept money, property, and services donated for the support of a Fisher House or Fisher Suite associated with health care facilities of that military department; and

      ‘(B) may impose fees relating to the use of such Fisher Houses and Fisher Suites.

    ‘(2) All monetary donations, and the proceeds of the disposal of any other donated property, accepted by the Secretary of a military department under this subsection shall be credited to the fund established under subsection (d) for the Fisher Houses and Fisher Suites associated with health care facilities of that military department and shall be available to that Secretary to support all such Fisher Houses and Fisher Suites.

    ‘(f) ANNUAL REPORT- Not later than January 15 of each year, the Secretary of each military department shall submit to Congress a report describing the operation of Fisher Houses and Fisher Suites associated with health care facilities of that military department. The report shall include, at a minimum, the following:

      ‘(1) The amount in the fund established by that Secretary under subsection (d) as of October 1 of the previous year.

      ‘(2) The operation of the fund during the preceding fiscal year, including--

        ‘(A) all gifts, fees, and interest credited to the fund; and

        ‘(B) all disbursements from the fund.

      ‘(3) The budget for the operation of the Fisher Houses and Fisher Suites for the fiscal year in which the report is submitted.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2492 (as added by section 365) the following new item:

      ‘2493. Fisher Houses: administration as nonappropriated fund instrumentality.’.

    (b) ESTABLISHMENT OF FUNDS- Not later than 90 days after the date of the enactment of this Act, the Secretary of each military department shall--

      (1) establish the fund required under section 2493(d) of title 10, United States Code (as added by subsection (a)); and

      (2) close the Fisher House Trust Fund established for that department under section 2221 of such title and transfer the amounts in the closed fund to the newly established fund.

    (c) FUNDING TRANSITION- (1) Of the amount authorized to be appropriated pursuant to section 301(2) for operation and maintenance for the Navy, the Secretary of the Navy shall transfer to the fund established by that Secretary under section 2493(d) of title 10, United States Code (as added by subsection (a)), such amount as that Secretary considers appropriate for establishing in the fund a corpus sufficient for operating Fisher Houses and Fisher Suites associated with health care facilities of the Department of the Navy.

    (2) Of the amount authorized to be appropriated pursuant to section 301(4) for operation and maintenance for the Air Force, the Secretary of the Air Force shall transfer to the fund established by that Secretary under section 2493(d) of title 10, United States Code (as added by subsection (a)), such amount as that Secretary considers appropriate for establishing in the fund a corpus sufficient for operating Fisher Houses and Fisher Suites associated with health care facilities of the Department of the Air Force.

    (d) REPORTING REQUIREMENTS- The Secretary of each military department, upon completing the actions required of the Secretary under subsections (b) and (c), shall submit to Congress a report containing--

      (1) the certification of that Secretary that those actions have been completed; and

      (2) a statement of the amount deposited in the fund established by that Secretary under section 2493(d) of title 10, United States Code (as added by subsection (a)).

    (e) AVAILABILITY OF TRANSFERRED AMOUNTS- Amounts transferred under subsection (b) or (c) to a fund established under section 2493(d) of title 10, United States Code (as added by subsection (a)), shall be available without fiscal year limitation for the purposes for which the fund is established and shall be administered as nonappropriated funds.

    (f) CONFORMING REPEALS- (1) Section 2221 of title 10, United States Code, and the item relating to that section in the table of sections at the beginning of chapter 131 of such title, are repealed.

    (2) Section 1321(a) of title 31, United States Code, is amended by striking out paragraphs (92), (93), and (94).

    (3) The amendments made by this subsection shall take effect 90 days after the date of the enactment of this Act.

SEC. 907. MANAGEMENT REFORM FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION ACTIVITIES.

    (a) ANALYSIS AND PLAN FOR REFORM OF MANAGEMENT OF RDTE ACTIVITIES- (1) The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Technology, shall analyze the structures and processes of the Department of Defense for management of its laboratories and test and evaluation centers. Taking into consideration the results of that analysis, the Secretary shall develop a plan for improving the management of those laboratories and centers. The plan shall include such reorganizations and reforms as the Secretary considers appropriate.

    (2) The analysis under paragraph (1) shall include an analysis of each of the following with respect to Department of Defense laboratories and test and evaluation centers:

      (A) Opportunities to improve efficiency and reduce duplication of efforts by those laboratories and centers by designating a lead agency or executive agent by area or function or other methods of streamlining management.

      (B) Reform of the management processes of those laboratories and centers that would reduce costs and increase efficiency in the conduct of research, development, test, and evaluation activities.

      (C) Opportunities for those laboratories and centers to enter into partnership arrangements with laboratories in industry, academia, and other Federal agencies that demonstrate leadership, initiative, and innovation in research, development, test, and evaluation activities.

      (D) The extent to which there is disseminated within those laboratories and centers information regarding initiatives that have successfully improved efficiency through reform of management processes and other means.

      (E) Any cost savings that can be derived directly from reorganization of management structures of those laboratories and centers.

      (F) Options for reinvesting any such cost savings in those laboratories and centers.

    (3) The Secretary shall submit the plan required under paragraph (1) to the congressional defense committees not later than 180 days after the date of the enactment of this Act.

    (b) COST-BASED MANAGEMENT INFORMATION SYSTEM- (1) The Secretary of Defense shall develop a plan, including a schedule, for establishing a cost-based management information system for Department of Defense laboratories and test and evaluation centers. The system shall provide for accurately identifying and comparing the costs of operating each laboratory and each center.

    (2) In preparing the plan, the Secretary shall assess the feasibility and desirability of establishing a common methodology for assessing costs. The Secretary shall consider the use of a revolving fund as one potential methodology.

    (3) The Secretary shall submit the plan required under paragraph (1) to the congressional defense committees not later than 90 days after the date of the enactment of this Act.

Subtitle B--Department of Defense Financial Management

SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

    (a) IN GENERAL- (1) Chapter 131 of title 10, United States Code, is amended by inserting after section 2211 the following new section:

‘Sec. 2212. Obligations for contract services: reporting in budget object classes

    ‘(a) LIMITATION ON REPORTING IN MISCELLANEOUS SERVICES OBJECT CLASS- The Secretary of Defense shall ensure that, in reporting to the Office of Management and Budget (pursuant to OMB Circular A-11 (relating to preparation and submission of budget estimates)) obligations of the Department of Defense for any period of time for contract services, no more than 15 percent of the total amount of obligations so reported is reported in the miscellaneous services object class.

    ‘(b) DEFINITION OF REPORTING CATEGORIES FOR ADVISORY AND ASSISTANCE SERVICES- In carrying out section 1105(g) of title 31 for the Department of Defense (and in determining what services are to be reported to the Office of Management and Budget in the advisory and assistance services object class), the Secretary of Defense shall apply to the terms used for the definition of ‘advisory and assistance services’ in paragraph (2)(A) of that section the following meanings (subject to the authorized exemptions):

      ‘(1) MANAGEMENT AND PROFESSIONAL SUPPORT SERVICES- The term ‘management and professional support services’ (used in clause (i) of section 1105(g)(2)(A) of title 31) means services that provide engineering or technical support, assistance, advice, or training for the efficient and effective management and operation of organizations, activities, or systems. Those services--

        ‘(A) are closely related to the basic responsibilities and mission of the using organization; and

        ‘(B) include efforts that support or contribute to improved organization or program management, logistics management, project monitoring and reporting, data collection, budgeting, accounting, auditing, and administrative or technical support for conferences and training programs.

      ‘(2) STUDIES, ANALYSES, AND EVALUATIONS- The term ‘studies, analyses, and evaluations’ (used in clause (ii) of section 1105(g)(2)(A) of title 31) means services that provide organized, analytic assessments to understand or evaluate complex issues to improve policy development, decisionmaking, management, or administration and that result in documents containing data or leading to conclusions or recommendations. Those services may include databases, models, methodologies, and related software created in support of a study, analysis, or evaluation.

      ‘(3) ENGINEERING AND TECHNICAL SERVICES- The term ‘engineering and technical services’ (used in clause (iii) of section 1105(g)(2)(A) of title 31) means services that take the form of advice, assistance, training, or hands-on training necessary to maintain and operate fielded weapon systems, equipment, and components (including software when applicable) at design or required levels of effectiveness.

    ‘(c) PROPER CLASSIFICATION OF ADVISORY AND ASSISTANCE SERVICES- Before the submission to the Office of Management and Budget of the proposed Department of Defense budget for inclusion in the President’s budget for a fiscal year pursuant to section 1105 of title 31, the Secretary of Defense, acting through the Under Secretary of Defense (Comptroller), shall conduct a review of Department of Defense services expected to be performed as contract services during the fiscal year for which that budget is to be submitted in order to ensure that those services that are advisory and assistance services (as defined in accordance with subsection (b)) are in fact properly classified, in accordance with that subsection, in the advisory and assistance services object class.

    ‘(d) REPORT TO CONGRESS- The Secretary shall submit to Congress each year, not later than 30 days after the date on which the budget for the next fiscal year is submitted pursuant to section 1105 of title 31, a report containing the information derived from the review under subsection (c).

    ‘(e) ASSESSMENT BY COMPTROLLER GENERAL- (1) The Comptroller General shall conduct a review of the report of the Secretary of Defense under subsection (d) each year and shall--

      ‘(A) assess the methodology used by the Secretary in obtaining the information submitted to Congress in that report; and

      ‘(B) assess the information submitted to Congress in that report.

    ‘(2) Not later than 120 days after the date on which the Secretary submits to Congress the report required under subsection (d) for any year, the Comptroller General shall submit to Congress the Comptroller General’s report containing the results of the review for that year under paragraph (1).

    ‘(f) DEFINITIONS- In this section:

      ‘(1) The term ‘contract services’ means all services that are reported to the Office of Management and Budget pursuant to OMB Circular A-11 (relating to preparation and submission of budget estimates) in budget object classes that are designated in the Object Class 25 series.

      ‘(2) The term ‘advisory and assistance services object class’ means those contract services constituting the budget object class that is denominated ‘Advisory and Assistance Service’ and designated (as of the date of the enactment of this section) as Object Class 25.1 (or any similar object class established after the date of the enactment of this section for the reporting of obligations for advisory and assistance contract services).

      ‘(3) The term ‘miscellaneous services object class’ means those contract services constituting the budget object class that is denominated ‘Other Services (services not otherwise specified in the 25 series)’ and designated (as of the date of the enactment of this section) as Object Class 25.2 (or any similar object class established after the date of the enactment of this section for the reporting of obligations for miscellaneous or unspecified contract services).

      ‘(4) The term ‘authorized exemptions’ means those exemptions authorized (as of the date of the enactment of this section) under Department of Defense Directive 4205.2, captioned ‘Acquiring and Managing Contracted Advisory and Assistance Services (CAAS)’ and issued by the Under Secretary of Defense for Acquisition and Technology on February 10, 1992, such exemptions being set forth in Enclosure 3 to that directive (captioned ‘CAAS Exemptions’).’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2211 the following new item:

      ‘2212. Obligations for contract services: reporting in budget object classes.’.

    (b) TRANSITION- For the budget for fiscal year 2000, and the reporting of information to the Office of Management and Budget in connection with the preparation of that budget, section 2212 of title 10, United States Code, as added by subsection (a), shall be applied by substituting ‘30 percent’ in subsection (a) for ‘15 percent’.

    (c) INITIAL CLASSIFICATION OF ADVISORY AND ASSISTANCE SERVICES- Not later than February 1, 1999, the Secretary of Defense, acting through the Under Secretary of Defense (Comptroller), shall conduct a review of Department of Defense services performed or expected to be performed as contract services during fiscal year 1999 in order to ensure that those services that are advisory and assistance services (as defined in accordance with subsection (b) of section 2212 of title 10, United States Code, as added by subsection (a)) are in fact properly classified, in accordance with that subsection, in the advisory and assistance services object class (as defined in subsection (f)(2) of that section).

    (d) FISCAL YEAR 1999 REDUCTION- The total amount that may be obligated by the Secretary of Defense for contracted advisory and assistance services from amounts appropriated for fiscal year 1999 is the amount programmed for those services resulting from the review referred to in subsection (c) reduced by $240,000,000.

SEC. 912. REPORT ON DEPARTMENT OF DEFENSE FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

    Not later than 60 days after the date on which the Secretary of Defense submits the first biennial financial management improvement plan required by section 2222 of title 10, United States Code, the Comptroller General shall submit to Congress an analysis of the plan. The analysis shall include a discussion of the content of the plan and the extent to which the plan--

      (1) complies with the requirements of such section 2222; and

      (2) is a workable plan for addressing the financial management problems of the Department of Defense.

SEC. 913. STUDY OF FEASIBILITY OF PERFORMANCE OF DEPARTMENT OF DEFENSE FINANCE AND ACCOUNTING FUNCTIONS BY PRIVATE SECTOR SOURCES OR OTHER FEDERAL SOURCES.

    (a) STUDY REQUIRED- (1) The Secretary of Defense shall carry out a study of the feasibility and advisability of selecting on a competitive basis the source or sources for performing the finance and accounting functions of the Department of Defense from among the Defense Finance and Accounting Service of the Department of Defense and non-DFAS sources.

    (2) For the purposes of this section, the term ‘non-DFAS sources’ means--

      (A) the military departments;

      (B) Federal agencies outside the Department of Defense; and

      (C) private sector sources.

    (b) REPORT- Not later than October 1, 1999, the Secretary shall submit to Congress a report in writing on the results of the study. The report shall include the following:

      (1) A discussion of how the finance and accounting functions of the Department of Defense are performed, including the necessary operations, the operations actually performed, the personnel required for the operations, and the core competencies that are necessary for the performance of those functions.

      (2) A comparison of the performance of the finance and accounting functions by the Defense Finance and Accounting Service with the performance of finance and accounting functions by non-DFAS sources that exemplify the best finance and accounting practices and results, together with a comparison of the costs of the performance of those functions by the Defense Finance and Accounting Service and the estimated costs of the performance of those functions by non-DFAS sources.

      (3) The finance and accounting functions, if any, that are appropriate for performance by non-DFAS sources, together with a concept of operations that--

        (A) specifies the mission;

        (B) identifies the finance and accounting operations to be performed;

        (C) describes the work force that is necessary to perform those operations;

        (D) discusses where the operations are to be performed;

        (E) describes how the operations are to be performed; and

        (F) discusses the relationship between how the operations are to be performed and the mission.

      (4) An analysis of how Department of Defense programs or processes would be affected by the performance of the finance and accounting functions of the Department of Defense by one or more non-DFAS source.

      (5) The status of the efforts within the Department of Defense to consolidate and eliminate redundant finance and accounting systems and to better integrate the automated and manual systems of the department that provide input to financial management or accounting systems of the department.

      (6) A description of a feasible and effective process for selecting, on a competitive basis, sources to perform the finance and accounting functions of the Department of Defense from among the Defense Finance and Accounting Service and non-DFAS sources, including a discussion of the selection criteria the Secretary considers appropriate.

      (7) An analysis of the costs and benefits of the various policies and actions recommended.

      (8) A discussion of any findings, analyses, and recommendations on the performance of the finance and accounting functions of the Department of Defense that have been made by the Task Force on Defense Reform appointed by the Secretary of Defense on May 14, 1997.

      (9) Any additional information and recommendations the Secretary considers appropriate.

    (c) MARKET RESEARCH- In carrying out the study, the Secretary shall conduct market research to determine whether or not an efficient and competitive domestic market for finance and accounting services exists. In conducting that research, the Secretary shall consider whether the domestic market for finance and accounting services could be reasonably expected to generate responsive private sector competitors for the provision of the finance and accounting services, or a portion of such services, of the Department of Defense and whether there are any substantial barriers to entry or expansion in that market. In conducting such research, the Secretary shall consider not only the current state of the domestic market for finance and accounting services, but also the potential effects that the entry of the Department of Defense as a large, long-term consumer of such services might have on that market.

SEC. 914. LIMITATION ON REORGANIZATION AND CONSOLIDATION OF OPERATING LOCATIONS OF THE DEFENSE FINANCE AND ACCOUNTING SERVICE.

    (a) LIMITATION- The Secretary of Defense may not close any operating location of the Defense Finance and Accounting Service before the date that is 90 days after the date on which the Secretary submits to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives the plan required by subsection (b).

    (b) PLAN REQUIRED- The Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a strategic plan for improving the financial management operations at each of the operating locations of the Defense Finance and Accounting Service.

    (c) CONTENT OF PLAN- The plan shall include the following:

      (1) The workloads that it is necessary to perform at those operating locations each fiscal year.

      (2) The capacity and number of operating locations that are necessary for performing those workloads.

      (3) A discussion of the costs and benefits that could result from reorganizing the operating locations of the Defense Finance and Accounting Service on the basis of function performed, together with the Secretary’s assessment of the feasibility of carrying out such a reorganization.

    (d) SUBMITTAL OF PLAN- The plan shall be submitted to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives not later than January 15, 1999.

SEC. 915. ANNUAL REPORT ON RESOURCES ALLOCATED TO SUPPORT AND MISSION ACTIVITIES.

    (a) REQUIREMENT- Section 113 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(l) The Secretary shall include in the annual report to Congress under subsection (c) the following:

      ‘(1) A comparison of the amounts provided in the defense budget for support and for mission activities for each of the preceding five fiscal years.

      ‘(2) A comparison of the number of military and civilian personnel, shown by major occupational category, assigned to support positions and to mission positions for each of the preceding five fiscal years.

      ‘(3) An accounting, shown by service and by major occupational category, of the number of military and civilian personnel assigned to support positions during each of the preceding five fiscal years.

      ‘(4) A listing of the number of military and civilian personnel assigned to management headquarters and headquarters support activities as a percentage of military end-strength for each of the preceding five fiscal years.’.

    (b) REPORT ON TERMINOLOGY- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report setting forth the definitions of the terms ‘support’ and ‘mission’ that the Secretary proposes to use for purposes of the report requirement under section 113(l) of title 10, United States Code, as added by subsection (a).

Subtitle C--Joint Warfighting Experimentation

SEC. 921. FINDINGS CONCERNING JOINT WARFIGHTING EXPERIMENTATION.

    Congress makes the following findings:

      (1) The assessments of the Quadrennial Defense Review and the National Defense Panel provide a compelling argument--

        (A) that the security environment in the early 21st century will include fundamentally different military challenges than the security environment in the late 20th century; and

        (B) reinforce the premise of the Goldwater-Nichols Department of Defense Reorganization Act of 1986 that future warfare will require more effective joint operational concepts.

      (2) Joint experimentation is necessary for--

        (A) integrating advances in technology with changes in organizational structure and joint operational concepts; and

        (B) determining the interdependent aspects of joint warfare that are key for transforming the conduct of military operations to meet future challenges successfully.

      (3) It is essential that an energetic and innovative organization be established in the Department of Defense with the authority (subject to the authority and guidance of the Secretary of Defense and Chairman of the Joint Chiefs of Staff) to design and implement a process of joint experimentation to investigate and test technologies and alternative forces and concepts in field environments under realistic conditions against the full range of future challenges to assist in developing and validating new joint warfighting concepts and transforming the Armed Forces to meet the threats to national security anticipated for the early 21st century.

SEC. 922. SENSE OF CONGRESS CONCERNING JOINT WARFIGHTING EXPERIMENTATION.

    (a) DESIGNATION OF COMMANDER TO HAVE JOINT WARFIGHTING EXPERIMENTATION MISSION- It is the sense of Congress that the initiative of the Secretary of Defense to designate the commander of a combatant command to have the mission of joint warfighting experimentation is a key step in exploiting the potential of advanced technologies, new organizational structures, and new joint operational concepts to transform the conduct of military operations by the Armed Forces.

    (b) RESOURCES AND AUTHORITY OF COMMANDER- It is, further, the sense of Congress that the commander of the combatant command referred to in subsection (a) should be provided with appropriate and sufficient resources for joint warfighting experimentation and with the appropriate authority to execute the commander’s assigned responsibilities and that such authority should include the following:

      (1) Planning, preparing, and conducting the program of joint warfighting experimentation, which program should include analyses, simulations, wargames, experiments, advanced concept technology demonstrations, joint exercises conducted in virtual and field environments, and, as a particularly critical aspect, assessments of ‘red team’ vulnerability.

      (2) Developing scenarios and measures of effectiveness to meet the operational challenges expected to be encountered in the early 21st century and assessing the effectiveness of current and new organizational structures, operational concepts, and technologies in addressing those challenges.

      (3) Integrating and testing in joint experimentation the systems and concepts that result from warfighting experimentation conducted by the Armed Forces and the Defense Agencies.

      (4) Coordinating with each of the Armed Forces and Defense Agencies regarding the development and acquisition of equipment (including surrogate or real technologies, platforms, and systems), supplies, and services necessary for joint experimentation.

      (5) Providing the Secretary of Defense and the Chairman of the Joint Chiefs of Staff with recommendations, based on the conduct of joint warfighting experimentation, for--

        (A) improving interoperability;

        (B) reducing unnecessary redundancy;

        (C) synchronizing technology fielding;

        (D) developing joint operational concepts;

        (E) prioritizing the most promising joint capabilities for future experimentation; and

        (F) prioritizing joint requirements and acquisition programs.

      (6) Making recommendations to the Chairman of the Joint Chiefs of Staff on mission needs statements and operational requirements documents.

    (c) CONGRESSIONAL REVIEW- It is, further, the sense of Congress that Congress--

      (1) should review the adequacy of the process of transformation to meet future challenges to the national security; and

      (2) if progress is determined inadequate, should consider legislation to--

        (A) establish an appropriate organization to conduct the mission described in subsection (a); and

        (B) provide to the commander given the responsibility for that mission appropriate and sufficient resources for joint warfighting experimentation and the appropriate authority to execute that commander’s assigned responsibilities for that mission, including the authorities specified in subsection (b).

SEC. 923. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

    (a) INITIAL REPORT- (1) The commander of the combatant command assigned by the Secretary of Defense to have the mission for joint warfighting experimentation shall submit to the Secretary an initial report on the implementation of joint experimentation. Not later than April 1, 1999, the Secretary shall submit that report, together with any comments that the Secretary considers appropriate and any comments that the Chairman of the Joint Chiefs of Staff considers appropriate, to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives.

    (2) The report of the commander under paragraph (1) shall include the commander’s assessment of the following:

      (A) The authority and responsibilities of the commander as described in section 922(b).

      (B) The organization of the commander’s combatant command, and of its staff, for carrying out the joint warfighting experimentation mission.

      (C) The process established for tasking forces to participate in experimentation and the commander’s specific authority over those forces, including forces designated as joint experimentation forces.

      (D) The resources provided for initial implementation of joint warfighting experimentation, the process for providing those resources to the commander, the categories of the funding, and the authority of the commander for budget execution.

      (E) The process established for the development and acquisition of the materiel, supplies, services, and equipment necessary for the conduct of joint warfighting experimentation.

      (F) The process established for designing, preparing, and conducting joint experiments.

      (G) The role assigned the commander for--

        (i) integrating and testing in joint warfighting experimentation the systems that emerge from warfighting experimentation by the Armed Forces or the Defense Agencies;

        (ii) assessing the effectiveness of organizational structures, operational concepts, and technologies; and

        (iii) assisting the Secretary of Defense and Chairman of the Joint Chiefs of Staff to prioritize requirements or acquisition programs.

    (b) ANNUAL REPORT- (1) Chapter 23 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 485. Joint warfighting experimentation

    ‘(a) ANNUAL REPORT- The commander of the combatant command assigned by the Secretary of Defense to have the mission for joint warfighting experimentation shall submit to the Secretary an annual report on the conduct of joint experimentation activities for the fiscal year ending in the year of the report. Not later than December 1 of each year, the Secretary shall submit that report, together with any comments that the Secretary considers appropriate and any comments that the Chairman of the Joint Chiefs of Staff considers appropriate, to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives.

    ‘(b) MATTERS TO BE INCLUDED- Each report under this section shall include, for the fiscal year covered by the report, the following:

      ‘(1) Any changes in the assessments of the matters described in section 923(a)(2) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 since the preparation of the assessments of those matters set forth in the latest report submitted under this section.

      ‘(2) A description of the conduct of joint experimentation activities, including the number of activities, the forces involved, the national security challenges addressed, the operational concepts assessed, and the scenarios and measures of effectiveness used.

      ‘(3) An assessment of the results of joint warfighting experimentation within the Department of Defense.

      ‘(4) With respect to joint warfighting experimentation, any recommendations that the commander considers appropriate regarding--

        ‘(A) the development or acquisition of advanced technologies;

        ‘(B) changes in organizational structure, operational concepts, or joint doctrine;

        ‘(C) the conduct of experiments;

        ‘(D) the adequacy of resources; or

        ‘(E) changes in authority of the commander to develop or acquire materiel, supplies, services, or equipment directly for the conduct of joint warfighting experimentation.’.

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

      ‘485. Joint warfighting experimentation.’.

    (c) FIRST ANNUAL REPORT- The first report under section 485 of title 10, United States Code, as added by subsection (b), shall be made with respect to fiscal year 1999. In the case of the report under that section for fiscal year 1999, the reference in subsection (b)(1) of that section to the most recent report under that section shall be treated as referring to the report under subsection (a) of this section.

Subtitle D--Other Matters

SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND SUPPORT WORKFORCE.

    (a) REDUCTION OF DEFENSE ACQUISITION AND SUPPORT WORKFORCE- The Secretary of Defense shall accomplish reductions in defense acquisition and support personnel positions during fiscal year 1999 so that the total number of such personnel as of October 1, 1999, is less than the total number of such personnel as of October 1, 1998, by at least the applicable number determined under subsection (b).

    (b) REQUIRED REDUCTION- (1) The applicable number for purposes of subsection (a) is 25,000. However, the Secretary of Defense may specify a lower number, which may not be less than 12,500, as the applicable number for purposes of subsection (a) if the Secretary determines, and certifies to Congress not later than May 1, 1999, that an applicable number greater than the number specified by the Secretary would be inconsistent with the cost-effective management of the defense acquisition system to obtain best value equipment and with ensuring military readiness.

    (2) The Secretary shall include with such a certification a report setting forth a detailed explanation of each of the matters certified. The report shall include--

      (A) a detailed explanation of all matters incorporated in the Secretary’s determination;

      (B) a definition of the components of the defense acquisition and support positions; and

      (C) the allocation of the reductions under this section among the occupational elements of those positions.

    (3) The authority of the Secretary under paragraph (1) may only be delegated to the Deputy Secretary of Defense.

    (c) LIMITATION ON REDUCTION OF CORE ACQUISITION WORKFORCE- The Secretary shall implement this section so that the core defense acquisition workforce identified by the Secretary in the report submitted pursuant to section 912(b) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1860) is reduced proportionally no more than the other occupational elements included as defense acquisition and support positions in that report.

    (d) DEFENSE ACQUISITION AND SUPPORT PERSONNEL DEFINED- For purposes of this section, the term ‘defense acquisition and support personnel’ means military and civilian personnel (other than civilian personnel who are employed at a maintenance depot) who are assigned to, or employed in, acquisition organizations of the Department of Defense (as specified in Department of Defense Instruction numbered 5000.58 dated January 14, 1992), and any other organizations which the Secretary may determine to have a predominantly acquisition mission.

SEC. 932. LIMITATION ON OPERATION AND SUPPORT FUNDS FOR THE OFFICE OF THE SECRETARY OF DEFENSE.

    Of the amount available for fiscal year 1999 for operation and support activities of the Office of the Secretary of Defense, not more than 90 percent may be obligated until each of the following reports has been submitted:

      (1) The report required to be submitted to the congressional defense committees by section 904(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2619).

      (2) The reports required to be submitted to Congress by sections 911(b) and 911(c) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1858, 1859).

SEC. 933. CLARIFICATION AND SIMPLIFICATION OF RESPONSIBILITIES OF INSPECTORS GENERAL REGARDING WHISTLEBLOWER PROTECTIONS.

    (a) ROLES OF INSPECTORS GENERAL OF THE ARMED FORCES- (1) Subsection (c) of section 1034 of title 10, United States Code, is amended--

      (A) by striking out paragraph (1) and inserting in lieu thereof the following:

    ‘(1) If a member of the armed forces submits to an Inspector General an allegation that a personnel action prohibited by subsection (b) has been taken (or threatened) against the member with respect to a communication described in paragraph (2), the Inspector General shall take the action required under paragraph (3).’; and

      (B) by striking out paragraph (3) and inserting in lieu thereof the following:

    ‘(3)(A) An Inspector General receiving an allegation as described in paragraph (1) shall expeditiously determine whether there is sufficient evidence to warrant an investigation of the allegation.

    ‘(B) If the Inspector General receiving such an allegation is an Inspector General within a military department, that Inspector General shall promptly notify the Inspector General of the Department of Defense of the allegation. Such notification shall be made in accordance with regulations prescribed under subsection (h).

    ‘(C) If an allegation under paragraph (1) is submitted to an Inspector General within a military department and if the determination of that Inspector General under subparagraph (A) is that there is not sufficient evidence to warrant an investigation of the allegation, that Inspector General shall forward the matter to the Inspector General of the Department of Defense for review.

    ‘(D) Upon determining that an investigation of an allegation under paragraph (1) is warranted, the Inspector General making the determination shall expeditiously investigate the allegation. In the case of a determination made by the Inspector General of the Department of Defense, that Inspector General may delegate responsibility for the investigation to an appropriate Inspector General within a military department.

    ‘(E) In the case of an investigation under subparagraph (D) within the Department of Defense, the results of the investigation shall be determined by, or approved by, the Inspector General of the Department of Defense (regardless of whether the investigation itself is conducted by the Inspector General of the Department of Defense or by an Inspector General within a military department).

    ‘(4) Neither an initial determination under paragraph (3)(A) nor an investigation under paragraph (3)(D) is required in the case of an allegation made more than 60 days after the date on which the member becomes aware of the personnel action that is the subject of the allegation.

    ‘(5) The Inspector General of the Department of Defense, or the Inspector General of the Department of Transportation (in the case of a member of the Coast Guard when the Coast Guard is not operating as a service in the Navy), shall ensure that the Inspector General conducting the investigation of an allegation under this subsection is outside the immediate chain of command of both the member submitting the allegation and the individual or individuals alleged to have taken the retaliatory action.’.

    (2) Subsection (d) of such section is amended--

      (A) by inserting ‘receiving the allegation’ after ‘the Inspector General’ the first place it appears; and

      (B) by adding at the end the following: ‘In the case of an allegation received by the Inspector General of the Department of Defense, the Inspector General may delegate that responsibility to the Inspector General of the armed force concerned.’.

    (b) MISMANAGEMENT COVERED BY PROTECTED COMMUNICATIONS- Subsection (c)(2)(B) of such section is amended by striking out ‘Mismanagement’ and inserting in lieu thereof ‘Gross mismanagement’.

    (c) SIMPLIFIED REPORTING AND NOTICE REQUIREMENTS- (1) Paragraph (1) of subsection (e) of such section is amended--

      (A) by striking out ‘Not later than 30 days after completion of an investigation under subsection (c) or (d),’ and inserting in lieu thereof ‘After completion of an investigation under subsection (c) or (d) or, in the case of an investigation under subsection (c) by an Inspector General within a military department, after approval of the report of that investigation under subsection (c)(3)(E),’

      (B) by striking out ‘the Inspector General shall submit a report on’ and inserting in lieu thereof ‘the Inspector General conducting the investigation shall submit a report on’;

      (C) by inserting ‘shall transmit a copy of the report on the results of the investigation to’ before ‘the member of the armed forces’; and

      (D) by adding at the end the following new sentence: ‘The report shall be transmitted to the Secretary, and the copy of the report shall be transmitted to the member, not later than 30 days after the completion of the investigation or, in the case of an investigation under subsection (c) by an Inspector General within a military department, after approval of the report of that investigation under subsection (c)(3)(E).’.

    (2) Paragraph (2) of such subsection is amended--

      (A) by striking out ‘submitted’ after ‘In the copy of the report’ and inserting in lieu thereof ‘transmitted’; and

      (B) by adding at the end the following new sentence: ‘However, the copy need not include summaries of interviews conducted, nor any document acquired, during the course of the investigation. Such items shall be transmitted to the member, if the member requests the items, with the copy of the report or after the transmittal to the member of the copy of the report, regardless of whether the request for those items is made before or after the copy of the report is transmitted to the member.’.

    (3) Paragraph (3) of such subsection is amended by striking out ‘90 days’ and inserting in lieu thereof ‘180 days’.

    (d) REPEAL OF POST-INVESTIGATION INTERVIEW REQUIREMENT- Subsection (h) of such section is repealed.

    (e) DEFINITION OF INSPECTOR GENERAL DEFINED- Subsection (j)(2) of such section is amended--

      (1) by redesignating subparagraph (B) as subparagraph (G) and, in that subparagraph, by striking out ‘an officer’ and inserting in lieu thereof ‘An officer’;

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

        ‘(A) The Inspector General of the Department of Defense.

        ‘(B) The Inspector General of the Department of Transportation, in the case of a member of the Coast Guard when the Coast Guard is not operating as a service in the Navy.

        ‘(C) The Inspector General of the Army, in the case of a member of the Army.

        ‘(D) The Naval Inspector General, in the case of a member of the Navy.

        ‘(E) The Inspector General of the Air Force, in the case of a member of the Air Force.

        ‘(F) The Deputy Naval Inspector General for Marine Corps Matters, in the case of a member of the Marine Corps.’; and

      (3) in the matter preceding subparagraph (A), by striking out ‘means--’ and inserting in lieu thereof ‘means the following:’.

    (f) TECHNICAL AND CONFORMING AMENDMENTS- (1) Subsections (i) and (j) of such section are redesignated as subsections (h) and (i), respectively.

    (2) Subsection (b)(1)(B)(ii) of such section is amended by striking out ‘subsection (j))’ and inserting in lieu thereof ‘subsection (i)) or any other Inspector General appointed under the Inspector General Act of 1978’.

SEC. 934. REPEAL OF REQUIREMENT RELATING TO ASSIGNMENT OF TACTICAL AIRLIFT MISSION TO RESERVE COMPONENTS.

    Section 1438 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1689), as amended by section 1023 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1460), is repealed.

SEC. 935. CONSULTATION WITH MARINE CORPS ON MAJOR DECISIONS DIRECTLY CONCERNING MARINE CORPS AVIATION.

    (a) IN GENERAL- Chapter 503 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 5026. Consultation with Commandant of the Marine Corps on major decisions directly concerning Marine Corps aviation

    ‘The Secretary of the Navy shall ensure that the views of the Commandant of the Marine Corps are given appropriate consideration before a major decision is made by an element of the Department of the Navy outside the Marine Corps on a matter that directly concerns Marine Corps aviation.’.

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

      ‘5026. Consultation with Commandant of the Marine Corps on major decisions directly concerning Marine Corps aviation.’.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

      Sec.1001.Transfer authority.

      Sec.1002.Incorporation of classified annex.

      Sec.1003.Authorization of prior emergency supplemental appropriations for fiscal year 1998.

      Sec.1004.Authorization of appropriations for Bosnia peacekeeping operations for fiscal year 1999.

      Sec.1005.Partnership for Peace Information Management System.

      Sec.1006.United States contribution to NATO common-funded budgets in fiscal year 1999.

      Sec.1007.Liquidity of working-capital funds.

      Sec.1008.Termination of authority to manage working-capital funds and certain activities through the Defense Business Operations Fund.

      Sec.1009.Clarification of authority to retain recovered costs of disposals in working-capital funds.

      Sec.1010.Crediting of amounts recovered from third parties for loss or damage to personal property shipped or stored at Government expense.

Subtitle B--Naval Vessels and Shipyards

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

      Sec.1012.Transfer of U.S.S. NEW JERSEY.

      Sec.1013.Homeporting of the U.S.S. IOWA in San Francisco, California.

      Sec.1014.Sense of Congress concerning the naming of an LPD-17 vessel.

      Sec.1015.Reports on naval surface fire-support capabilities.

      Sec.1016.Long-term charter of three vessels in support of submarine rescue, escort, and towing.

      Sec.1017.Transfer of obsolete Army tugboat.

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

      Sec.1021.Department of Defense support to other agencies for counter-drug activities.

      Sec.1022.Department of Defense support of National Guard drug interdiction and counter-drug activities.

      Sec.1023.Department of Defense counter-drug activities in transit zone.

Subtitle D--Miscellaneous Report Requirements and Repeals

      Sec.1031.Repeal of unnecessary and obsolete reporting provisions.

      Sec.1032.Report regarding use of tagging system to identify hydrocarbon fuels used by Department of Defense.

Subtitle E--Armed Forces Retirement Home

      Sec.1041.Appointment of Director and Deputy Director of the Naval Home.

      Sec.1042.Revision of inspection requirements relating to Armed Forces Retirement Home.

      Sec.1043.Clarification of land conveyance authority, Armed Forces Retirement Home.

Subtitle F--Matters Relating to Defense Property

      Sec.1051.Plan for improved demilitarization of excess and surplus defense property.

      Sec.1052.Transfer of F-4 Phantom II aircraft to foundation.

Subtitle G--Other Department of Defense Matters

      Sec.1061.Pilot program on alternative notice of receipt of legal process for garnishment of Federal pay for child support and alimony.

      Sec.1062.Training of special operations forces with friendly foreign forces.

      Sec.1063.Research grants competitively awarded to service academies.

      Sec.1064.Department of Defense use of frequency spectrum.

      Sec.1065.Department of Defense aviation accident investigations.

      Sec.1066.Investigation of actions relating to 174th Fighter Wing of New York Air National Guard.

      Sec.1067.Program to commemorate 50th anniversary of the Korean War.

      Sec.1068.Designation of America’s National Maritime Museum.

      Sec.1069.Technical and clerical amendments.

Subtitle H--Other Matters

      Sec.1071.Act constituting presidential approval of vessel war risk insurance requested by the Secretary of Defense.

      Sec.1072.Extension and reauthorization of Defense Production Act of 1950.

      Sec.1073.Requirement that burial flags furnished by the Secretary of Veterans Affairs be wholly produced in the United States.

      Sec.1074.Sense of Congress concerning tax treatment of principal residence of members of Armed Forces while away from home on active duty.

      Sec.1075.Clarification of State authority to tax compensation paid to certain employees.

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) AUTHORITY TO TRANSFER AUTHORIZATIONS- (1) Upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of Defense in this division for fiscal year 1999 between any such authorizations for that fiscal year (or any subdivisions thereof). Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred.

    (2) The total amount of authorizations that the Secretary may transfer under the authority of this section may not exceed $2,000,000,000.

    (b) LIMITATIONS- The authority provided by this section to transfer authorizations--

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

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

    (c) EFFECT ON AUTHORIZATION AMOUNTS- A transfer made from one account to another under the authority of this section shall be deemed to increase the amount authorized for the account to which the amount is transferred by an amount equal to the amount transferred.

    (d) NOTICE TO CONGRESS- The Secretary shall promptly notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) STATUS OF CLASSIFIED ANNEX- The Classified Annex prepared by the committee of conference to accompany the conference report on the bill H.R. 3616 of the One Hundred Fifth Congress and transmitted to the President is hereby incorporated into this Act.

    (b) CONSTRUCTION WITH OTHER PROVISIONS OF ACT- The amounts specified in the Classified Annex are not in addition to amounts authorized to be appropriated by other provisions of this Act.

    (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. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1998.

    Amounts authorized to be appropriated to the Department of Defense for fiscal year 1998 in the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) are hereby adjusted, with respect to any such authorized amount, by the amount by which appropriations pursuant to such authorization were increased (by a supplemental appropriation) or decreased (by a rescission), or both, in the 1998 Supplemental Appropriations and Rescissions Act (Public Law 105-174).

SEC. 1004. AUTHORIZATION OF APPROPRIATIONS FOR BOSNIA PEACEKEEPING OPERATIONS FOR FISCAL YEAR 1999.

    (a) AUTHORIZATION OF APPROPRIATIONS- Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 1999 for incremental costs of the Armed Forces for Bosnia peacekeeping operations in the total amount of $1,858,600,000, as follows:

      (1) For military personnel, in addition to the amounts authorized to be appropriated in title IV of this Act:

        (A) For the Army, $297,700,000.

        (B) For the Navy, $9,700,000.

        (C) For the Marine Corps, $2,700,000.

        (D) For the Air Force, $33,900,000.

        (E) For the Naval Reserve, $2,200,000.

      (2) For operation and maintenance for the Overseas Contingency Operations Transfer Fund, in addition to the total amount authorized to be appropriated for that fund in section 301(24) of this Act, $1,512,400,000.

    (b) DESIGNATION AS EMERGENCY- Funds authorized to be appropriated in accordance with subsection (a) are designated as emergency requirements pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).

    (c) LIMITATION- (1) Funds available for the Department of Defense for fiscal year 1999 for military personnel for the Army, Navy, Marine Corps, Air Force, or Naval Reserve or for operation and maintenance for the Overseas Contingency Operations Transfer Fund may not be obligated or expended for Bosnia peacekeeping operations in excess of the amount authorized to be appropriated for that purpose under subsection (a).

    (2) The President may waive the limitation in paragraph (1) after submitting to Congress the following:

      (A) The President’s written certification that the waiver is necessary in the national security interests of the United States.

      (B) The President’s written certification that exercising the waiver will not adversely affect the readiness of United States military forces.

      (C) A report setting forth the following:

        (i) The reasons that the waiver is necessary in the national security interests of the United States.

        (ii) The specific reasons that additional funding is required for the continued presence of United States military forces participating in, or supporting, Bosnia peacekeeping operations for fiscal year 1999.

        (iii) A discussion of the impact on the military readiness of United States Armed Forces of the continuing deployment of United States military forces participating in, or supporting, Bosnia peacekeeping operations.

      (D) A supplemental appropriations request for the Department of Defense for such amounts as are necessary for the additional fiscal year 1999 costs associated with United States military forces participating in, or supporting, Bosnia peacekeeping operations.

    (d) TRANSFER AUTHORITY- The Secretary of Defense may transfer amounts of authorizations made available to the Department of Defense in subsection (a)(2) for fiscal year 1999 to any of the authorizations for that fiscal year in section 301. Amounts of authorizations so transferred shall be merged with and be available for the same purposes as the authorization to which transferred. The transfer authority under this subsection is in addition to any other transfer authority provided in this Act.

    (e) BOSNIA PEACEKEEPING OPERATIONS DEFINED- For the purposes of this section, the term ‘Bosnia peacekeeping operations’--

      (1) means the operation designated as Operation Joint Forge and any other operation involving the participation of any of the Armed Forces in peacekeeping or peace enforcement activities in and around the Republic of Bosnia and Herzegovina; and

      (2) includes, with respect to Operation Joint Forge or any such other operation, each activity that is directly related to the support of the operation.

SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

    Funds authorized to be appropriated under titles II and III of this Act shall be available for the Partnership for Peace Information Management System as follows:

      (1) Of the amount authorized to be appropriated under section 201(4) for Defense-wide activities, $2,000,000.

      (2) Of the amount authorized to be appropriated under section 301(5) for Defense-wide activities, $3,000,000.

SEC. 1006. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN FISCAL YEAR 1999.

    (a) FISCAL YEAR 1999 LIMITATION- The total amount contributed by the Secretary of Defense in fiscal year 1999 for the common-funded budgets of NATO may be any amount up to, but not in excess of, the amount specified in subsection (b) (rather than the maximum amount that would otherwise be applicable to those contributions under the fiscal year 1998 baseline limitation).

    (b) TOTAL AMOUNT- The amount of the limitation applicable under subsection (a) is the sum of the following:

      (1) The amounts of unexpended balances, as of the end of fiscal year 1998, of funds appropriated for fiscal years before fiscal year 1999 for payments for those budgets.

      (2) The amount authorized to be appropriated under section 301(1) that is available for contributions for the NATO common-funded military budget under section 314.

      (3) The amount authorized to be appropriated under section 201 that is available for contribution for the NATO common-funded civil budget under section 243.

      (4) The total amount of the contributions authorized to be made under section 2501.

    (c) DEFINITIONS- For purposes of this section:

      (1) COMMON-FUNDED BUDGETS OF NATO- The term ‘common-funded budgets of NATO’ means the Military Budget, the Security Investment Program, and the Civil Budget of the North Atlantic Treaty Organization (and any successor or additional account or program of NATO).

      (2) FISCAL YEAR 1998 BASELINE LIMITATION- The term ‘fiscal year 1998 baseline limitation’ means the maximum annual amount of Department of Defense contributions for common-funded budgets of NATO that is set forth as the annual limitation in section 3(2)(C)(ii) of the resolution of the Senate giving the advice and consent of the Senate to the ratification of the Protocols to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, and the Czech Republic (as defined in section 4(7) of that resolution), approved by the Senate on April 30, 1998.

SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

    (a) INCREASED CASH BALANCES- The Secretary of Defense shall administer the working-capital funds of the Department of Defense during fiscal year 1999 so as to ensure that the total amount of the cash balances in such funds on September 30, 1999, exceeds the total amount of the cash balances in such funds on September 30, 1998, by $1,300,000,000.

    (b) ACTIONS REGARDING UNBUDGETED LOSSES- The Under Secretary of Defense (Comptroller) shall take such actions regarding unbudgeted losses for the working-capital funds as may be necessary in order to ensure that such unbudgeted losses do not preclude the Secretary of Defense from achieving the increase in cash balances in working-capital funds required under subsection (a).

    (c) WAIVER- (1) The Secretary of Defense may waive the requirements of this section upon certifying to Congress, in writing, that the waiver is necessary to meet requirements associated with--

      (A) a contingency operation (as defined in section 101(a)(13) of title 10, United States Code); or

      (B) an operation of the Armed Forces that commenced before October 1, 1998, and continues during fiscal year 1999.

    (2) The waiver authority under paragraph (1) may not be delegated to any official other than the Deputy Secretary of Defense.

    (3) The waiver authority under paragraph (1) does not apply to the limitation in subsection (d) or the limitation in section 2208(l)(3) of title 10, United States Code (as added by subsection (e)).

    (d) FISCAL YEAR 1999 LIMITATION ON ADVANCE BILLINGS- (1) The total amount of the advance billings rendered or imposed for the working-capital funds of the Department of Defense and the Defense Business Operations Fund in fiscal year 1999--

      (A) for the Department of the Navy, may not exceed $400,000,000; and

      (B) for the Department of the Air Force, may not exceed $400,000,000.

    (2) In paragraph (1), the term ‘advance billing’ has the meaning given such term in section 2208(l) of title 10, United States Code.

    (e) PERMANENT LIMITATION ON ADVANCE BILLINGS- (1) Section 2208(l) of title 10, United States Code, is amended--

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

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

    ‘(3) The total amount of the advance billings rendered or imposed for all working-capital funds of the Department of Defense in a fiscal year may not exceed $1,000,000,000.’.

    (2) Section 2208(l)(3) of such title, as added by paragraph (1), applies to fiscal years after fiscal year 1999.

    (f) SEMIANNUAL REPORT- (1) The Under Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives--

      (A) not later than May 1, 1999, a report on the administration of this section for the six-month period ending on March 31, 1999; and

      (B) not later than November 1, 1999, a report on the administration of this section for the six-month period ending on September 30, 1999.

    (2) Each report shall include, for the period covered by the report, the following:

      (A) The profit and loss status of each working-capital fund activity.

      (B) The actions taken by the Secretary of each military department to use assessments of surcharges to correct for unbudgeted losses.

SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS OPERATIONS FUND.

    (a) REVISION OF CERTAIN DBOF PROVISIONS AND REENACTMENT TO APPLY TO WORKING-CAPITAL FUNDS GENERALLY- Section 2208 of title 10, United States Code, is amended by adding at the end the following:

    ‘(m) CAPITAL ASSET SUBACCOUNTS- Amounts charged for depreciation of capital assets shall be credited to a separate capital asset subaccount established within a working-capital fund.

    ‘(n) SEPARATE ACCOUNTING, REPORTING, AND AUDITING OF FUNDS AND ACTIVITIES- The Secretary of Defense, with respect to the working-capital funds of each Defense Agency, and the Secretary of each military department, with respect to the working-capital funds of the military department, shall provide for separate accounting, reporting, and auditing of funds and activities managed through the working-capital funds.

    ‘(o) CHARGES FOR GOODS AND SERVICES PROVIDED THROUGH THE FUND- (1) Charges for goods and services provided for an activity through a working-capital fund shall include the following:

      ‘(A) Amounts necessary to recover the full costs of the goods and services provided for that activity.

      ‘(B) Amounts for depreciation of capital assets, set in accordance with generally accepted accounting principles.

    ‘(2) Charges for goods and services provided through a working-capital fund may not include the following:

      ‘(A) Amounts necessary to recover the costs of a military construction project (as defined in section 2801(b) of this title), other than a minor construction project financed by the fund pursuant to section 2805(c)(1) of this title.

      ‘(B) Amounts necessary to cover costs incurred in connection with the closure or realignment of a military installation.

      ‘(C) Amounts necessary to recover the costs of functions designated by the Secretary of Defense as mission critical, such as ammunition handling safety, and amounts for ancillary tasks not directly related to the mission of the function or activity managed through the fund.

    ‘(p) PROCEDURES FOR ACCUMULATION OF FUNDS- The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of a military department, with respect to each working-capital fund of the military department, shall establish billing procedures to ensure that the balance in that working-capital fund does not exceed the amount necessary to provide for the working-capital requirements of that fund, as determined by the Secretary.

    ‘(q) ANNUAL REPORTS AND BUDGET- The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of each military department, with respect to each working-capital fund of the military department, shall annually submit to Congress, at the same time that the President submits the budget under section 1105 of title 31, the following:

      ‘(1) A detailed report that contains a statement of all receipts and disbursements of the fund (including such a statement for each subaccount of the fund) for the fiscal year ending in the year preceding the year in which the budget is submitted.

      ‘(2) A detailed proposed budget for the operation of the fund for the fiscal year for which the budget is submitted.

      ‘(3) A comparison of the amounts actually expended for the operation of the fund for the fiscal year referred to in paragraph (1) with the amount proposed for the operation of the fund for that fiscal year in the President’s budget.

      ‘(4) A report on the capital asset subaccount of the fund that contains the following information:

        ‘(A) The opening balance of the subaccount as of the beginning of the fiscal year in which the report is submitted.

        ‘(B) The estimated amounts to be credited to the subaccount in the fiscal year in which the report is submitted.

        ‘(C) The estimated amounts of outlays to be paid out of the subaccount in the fiscal year in which the report is submitted.

        ‘(D) The estimated balance of the subaccount at the end of the fiscal year in which the report is submitted.

        ‘(E) A statement of how much of the estimated balance at the end of the fiscal year in which the report is submitted will be needed to pay outlays in the immediately following fiscal year that are in excess of the amount to be credited to the subaccount in the immediately following fiscal year.’.

    (b) REPEAL OF AUTHORITY TO MANAGE THROUGH THE DEFENSE BUSINESS OPERATIONS FUND- Section 2216a of title 10, United States Code, and the item relating to that section in the table of sections at the beginning of chapter 131 of such title, are repealed.

SEC. 1009. CLARIFICATION OF AUTHORITY TO RETAIN RECOVERED COSTS OF DISPOSALS IN WORKING-CAPITAL FUNDS.

    Section 2210(a) of title 10, United States Code, is amended to read as follows:

    ‘(a)(1) A working-capital fund established pursuant to section 2208 of this title may retain so much of the proceeds of disposals of property referred to in paragraph (2) as is necessary to recover the expenses incurred by the fund in disposing of such property. Proceeds from the sale or disposal of such property in excess of amounts necessary to recover the expenses may be credited to current applicable appropriations of the Department of Defense.

    ‘(2) Paragraph (1) applies to disposals of supplies, material, equipment, and other personal property that were not financed by stock funds established under section 2208 of this title.’.

SEC. 1010. CREDITING OF AMOUNTS RECOVERED FROM THIRD PARTIES FOR LOSS OR DAMAGE TO PERSONAL PROPERTY SHIPPED OR STORED AT GOVERNMENT EXPENSE.

    (a) IN GENERAL- (1) Chapter 163 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2739. Amounts recovered from third parties for loss or damage to personal property shipped or stored at Government expense: crediting to appropriations

    ‘(a) CREDITING OF COLLECTIONS- Any qualifying military department third-party collection shall be credited to the appropriate current appropriation. Amounts so credited shall be merged with the funds in that appropriation and shall be available for the same period and purposes as the funds with which merged.

    ‘(b) APPROPRIATE CURRENT APPROPRIATION- For purposes of subsection (a), the appropriate current appropriation with respect to a qualifying military department third-party collection is the appropriation currently available, as of the date of the collection, for the payment of claims by that military department for loss or damage of personal property shipped or stored at Government expense.

    ‘(c) QUALIFYING MILITARY DEPARTMENT THIRD-PARTY COLLECTIONS- For purposes of subsection (a), a qualifying military department third-party collection is any amount that a military department collects under sections 3711, 3716, 3717, and 3721 of title 31 from a third party for a loss or damage to personal property that occurred during shipment or storage of the property at Government expense and for which the Secretary of the military department paid the owner in settlement of a claim.’.

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

      ‘2739. Amounts recovered from third parties for loss or damage to personal property shipped or stored at Government expense: crediting to appropriations.’.

    (b) EFFECTIVE DATE- Section 2739 of title 10, United States Code, as added by subsection (a), applies with respect to amounts collected by a military department on or after the date of the enactment of this Act.

Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REVISION TO REQUIREMENT FOR CONTINUED LISTING OF TWO IOWA-CLASS BATTLESHIPS ON THE NAVAL VESSEL REGISTER.

    In carrying out section 1011 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421), the Secretary of the Navy shall list on the Naval Vessel Register, and maintain on that register, the following two Iowa-class battleships: the U.S.S. IOWA (BB-61) and the U.S.S. WISCONSIN (BB-64).

SEC. 1012. TRANSFER OF U.S.S. NEW JERSEY.

    The Secretary of the Navy shall strike the U.S.S. NEW JERSEY (BB-62) from the Naval Vessel Register and shall transfer that vessel to a non-for-profit entity in accordance with section 7306 of title 10, United States Code. The Secretary shall require as a condition of the transfer of that vessel that the transferee locate the vessel in the State of New Jersey.

SEC. 1013. HOMEPORTING OF THE U.S.S. IOWA IN SAN FRANCISCO, CALIFORNIA.

    It is the sense of Congress that the U.S.S. IOWA (BB-61) should be homeported at the Port of San Francisco, California.

SEC. 1014. SENSE OF CONGRESS CONCERNING THE NAMING OF AN LPD-17 VESSEL.

    It is the sense of Congress that, consistent with section 1018 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 425), the Secretary of the Navy should name the next vessel of the LPD-17 class of amphibious vessels to be named after the date of the enactment of this Act as the U.S.S. Clifton B. Cates, in honor of former Commandant of the Marine Corps Clifton B. Cates (1893-1970), a native of Tennessee whose distinguished career of service in the Marine Corps included combat service in World War I so heroic that he became the most decorated Marine Corps officer of that war, exemplary combat leadership in the Pacific theater during World War II from Guadalcanal to Tinian and Iwo Jima and beyond, and appointment in 1948 as the 19th Commandant of the Marine Corps with the rank of lieutenant general, a position from which he led the efficient and alacritous response of the Marine Corps to the invasion of the Republic of South Korea by Communist North Korea.

SEC. 1015. REPORTS ON NAVAL SURFACE FIRE-SUPPORT CAPABILITIES.

    (a) NAVY REPORT- (1) Not later than March 31, 1999, the Secretary of the Navy shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on battleship readiness for meeting requirements of the Armed Forces for naval surface fire support.

    (2) The report shall contain the following:

      (A) The reasons for the Secretary’s failure to comply with the requirements of section 1011 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421) until February 1998.

      (B) The requirements for specialized air-naval gunfire liaison units.

      (C) The plans of the Navy for retaining and maintaining 16-inch ammunition for the main guns of battleships.

      (D) The plans of the Navy for retaining the hammerhead crane essential for lifting battleship turrets.

      (E) An estimate of the cost of reactivating Iowa-class battleships for listing on the Naval Vessel Register, restoring the vessels to seaworthiness with operational capabilities necessary to meet requirements for naval surface fire-support, and maintaining the battleships in that condition for continued listing on the register, together with an estimate of the time necessary to reactivate and restore the vessels to that condition.

      (F) An assessment of the short-term costs and the long-term costs associated with alternative methods for executing the naval surface fire-support mission of the Navy, including the alternative of reactivating two battleships.

    (3) The Secretary shall act through the Director of Expeditionary Warfare Division (N85) of the Office of the Chief of Naval Operations in preparing the report.

    (b) GAO REPORT- (1) The Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the naval surface fire-support capabilities of the Navy.

    (2) The report shall contain the following:

      (A) An assessment of the extent of the compliance by the Secretary of the Navy with the requirements of section 1011 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421).

      (B) The plans of the Navy for executing the naval surface fire-support mission of the Navy.

      (C) An assessment of the short-term costs and the long-term costs associated with the plans.

      (D) An analysis of the assessment required under subsection (a)(2)(F).

SEC. 1016. LONG-TERM CHARTER OF THREE VESSELS IN SUPPORT OF SUBMARINE RESCUE, ESCORT, AND TOWING.

    The Secretary of the Navy may enter into contracts in accordance with section 2401 of title 10, United States Code, for the charter through September 30, 2003, of the following vessels:

      (1) The CAROLYN CHOUEST (United States official number D102057).

      (2) The KELLIE CHOUEST (United States official number D1038519).

      (3) The DOLORES CHOUEST (United States official number D600288).

SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

    In carrying out section 1023 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1876), the Secretary of the Army may substitute the obsolete, decommissioned tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-1971) as one of the two obsolete tugboats authorized to be transferred by the Secretary under that section.

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

SEC. 1021. DEPARTMENT OF DEFENSE SUPPORT TO OTHER AGENCIES FOR COUNTER-DRUG ACTIVITIES.

    (a) CONTINUATION OF AUTHORITY- Subsection (a) of section 1004 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is amended by striking out ‘through 1999’ and inserting in lieu thereof ‘through 2002’.

    (b) BASES AND FACILITIES SUPPORT- Subsection (b)(4) of such section is amended--

      (1) by striking out ‘unspecified minor construction’ and inserting in lieu thereof ‘an unspecified minor military construction project’;

      (2) by inserting ‘of the Department of Defense or any Federal, State, or local law enforcement agency’ after ‘counter-drug activities’; and

      (3) by inserting before the period at the end the following: ‘or counter-drug activities of a foreign law enforcement agency outside the United States’.

    (c) CONGRESSIONAL NOTIFICATION OF FACILITIES PROJECTS- Such section is further amended by adding at the end the following new subsection:

    ‘(h) CONGRESSIONAL NOTIFICATION OF FACILITIES PROJECTS- (1) When a decision is made to carry out a military construction project described in paragraph (2), the Secretary of Defense shall submit to the congressional defense committees written notice of the decision, including the justification for the project and the estimated cost of the project. The project may be commenced only after the end of the 21-day period beginning on the date on which the written notice is received by Congress.

    ‘(2) Paragraph (1) applies to an unspecified minor military construction project that--

      ‘(A) is intended for the modification or repair of a Department of Defense facility for the purpose set forth in subsection (b)(4); and

      ‘(B) has an estimated cost of more than $500,000.’.

SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT OF NATIONAL GUARD DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.

    (a) PROCUREMENT OF EQUIPMENT- Subsection (a)(3) of section 112 of title 32, United States Code, is amended--

      (1) by striking out ‘and leasing of equipment’ and inserting in lieu thereof ‘and equipment, and the leasing of equipment,’; and

      (2) by adding at the end the following new sentence: ‘However, the use of such funds for the procurement of equipment may not exceed $5,000 per purchase order, unless approval for procurement of equipment in excess of that amount is granted in advance by the Secretary of Defense.’.

    (b) TRAINING AND READINESS- Subsection (b)(2) of such section is amended to read as follows:

    ‘(2)(A) A member of the National Guard serving on full-time National Guard duty under orders authorized under paragraph (1) shall participate in the training required under section 502(a) of this title in addition to the duty performed for the purpose authorized under that paragraph. The pay, allowances, and other benefits of the member while participating in the training shall be the same as those to which the member is entitled while performing duty for the purpose of carrying out drug interdiction and counter-drug activities. The member is not entitled to additional pay, allowances, or other benefits for participation in training required under section 502(a)(1) of this title.

    ‘(B) Appropriations available for the Department of Defense for drug interdiction and counter-drug activities may be used for paying costs associated with a member’s participation in training described in subparagraph (A). The appropriation shall be reimbursed in full, out of appropriations available for paying those costs, for the amounts paid. Appropriations available for paying those costs shall be available for making the reimbursements.

    ‘(C) To ensure that the use of units and personnel of the National Guard of a State pursuant to a State drug interdiction and counter-drug activities plan does not degrade the training and readiness of such units and personnel, the following requirements shall apply in determining the drug interdiction and counter-drug activities that units and personnel of the National Guard of a State may perform:

      ‘(i) The performance of the activities may not adversely affect the quality of that training or otherwise interfere with the ability of a member or unit of the National Guard to perform the military functions of the member or unit.

      ‘(ii) National Guard personnel will not degrade their military skills as a result of performing the activities.

      ‘(iii) The performance of the activities will not result in a significant increase in the cost of training.

      ‘(iv) In the case of drug interdiction and counter-drug activities performed by a unit organized to serve as a unit, the activities will support valid unit training requirements.’.

    (c) ASSISTANCE TO YOUTH AND CHARITABLE ORGANIZATIONS- Subsection (b)(3) of such section is amended to read as follows:

    ‘(3) A unit or member of the National Guard of a State may be used, pursuant to a State drug interdiction and counter-drug activities plan approved by the Secretary of Defense under this section, to provide services or other assistance (other than air transportation) to an organization eligible to receive services under section 508 of this title if--

      ‘(A) the State drug interdiction and counter-drug activities plan specifically recognizes the organization as being eligible to receive the services or assistance;

      ‘(B) in the case of services, the performance of the services meets the requirements of paragraphs (1) and (2) of subsection (a) of section 508 of this title; and

      ‘(C) the services or assistance is authorized under subsection (b) or (c) of such section or in the State drug interdiction and counter-drug activities plan.’.

    (d) DEFINITION OF DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES- Subsection (i)(1) of such section is amended by inserting after ‘drug interdiction and counter-drug law enforcement activities’ the following: ‘, including drug demand reduction activities,’.

    (e) CONFORMING AMENDMENTS- Subsection (a) of such section is further amended--

      (1) by striking out ‘for--’ and inserting in lieu thereof ‘for the following:’;

      (2) by striking out ‘the’ at the beginning of paragraphs (1), (2), and (3) and inserting in lieu thereof ‘The’;

      (3) in paragraph (1), by striking out the semicolon at the end and inserting in lieu thereof a period; and

      (4) in paragraph (2), by striking out ‘; and’ and inserting in lieu thereof a period.

SEC. 1023. DEPARTMENT OF DEFENSE COUNTER-DRUG ACTIVITIES IN TRANSIT ZONE.

    (a) SENSE OF CONGRESS REGARDING PRIORITY OF DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES- It is the sense of Congress that the Secretary of Defense should--

      (1) ensure that the international drug interdiction and counter-drug activities of the Department of Defense are accorded adequate resources within the budget allocation of the Department to execute the drug interdiction and counter-drug mission under the Global Military Force Policy of the Department; and

      (2) make such changes to that policy as the Secretary considers necessary.

    (b) SUPPORT FOR COUNTER-DRUG OPERATION CAPER FOCUS- (1) During fiscal year 1999, the Secretary of Defense shall make available, to the maximum extent practicable, such surface vessels, maritime patrol aircraft, and personnel of the Navy as may be necessary to conduct the final phase of the counter-drug operation known as Caper Focus, which targets the maritime movement of cocaine on vessels in the eastern Pacific Ocean.

    (2) Of the amount authorized to be appropriated pursuant to section 301(20) for drug interdiction and counter-drug activities, $10,500,000 shall be available for the purpose of conducting the counter-drug operation known as Caper Focus.

    (c) PATROL COASTAL CRAFT FOR DRUG INTERDICTION BY SOUTHERN COMMAND- Of the amount authorized to be appropriated pursuant to section 301(20) for drug interdiction and counter-drug activities, $14,500,000 shall be available for the purpose of equipping and operating six of the Cyclone-class coastal defense ships of the Department of Defense in the Caribbean Sea and eastern Pacific Ocean in support of the drug interdiction efforts of the United States Southern Command.

    (d) RESULTING AVAILABILITY OF FUNDS FOR COUNTERPROLIFERATION AND COUNTERTERRORISM ACTIVITIES- (1) In light of subsection (c), of the amount authorized to be appropriated pursuant to section 301(5) for the Special Operations Command, $4,500,000 shall be available for the purpose of increased training and related operations in support of the activities of the Special Operations Command regarding counterproliferation of weapons of mass destruction and counterterrorism.

    (2) The amount made available under this subsection is in addition to other funds authorized to be appropriated under section 301(5) for the Special Operations Command for such purpose.

Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1031. REPEAL OF UNNECESSARY AND OBSOLETE REPORTING PROVISIONS.

    (a) HEALTH AND MEDICAL CARE STUDIES AND DEMONSTRATIONS- Section 1092(a) of title 10, United States Code, is amended by striking out paragraph (3).

    (b) EXECUTED REQUIREMENT FOR BIANNUAL REPORTS ON ALTERNATIVE UTILIZATION OF MILITARY FACILITIES- Section 2819 of the National Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 2391 note), relating to the Commission on Alternative Utilization of Military Facilities, is repealed.

SEC. 1032. REPORT REGARDING USE OF TAGGING SYSTEM TO IDENTIFY HYDROCARBON FUELS USED BY DEPARTMENT OF DEFENSE.

    (a) REPORT REQUIRED- Not later than March 30, 1999, the Secretary of Defense shall submit to Congress a report evaluating the following:

      (1) The feasibility of tagging hydrocarbon fuels used by the Department of Defense for the purposes of analyzing and identifying such fuels.

      (2) The deterrent effect of such tagging on the theft and misuse of fuels purchased by the Department.

      (3) The extent to which such tagging would assist in determining the source of surface and underground pollution in locations having separate fuel storage facilities of the Department and of civilian companies.

    (b) SYSTEM ELEMENTS- In preparing the report, the Secretary shall ensure that any tagging system for the Department of Defense considered by the Secretary satisfies the following requirements:

      (1) The tagging system would not harm the environment.

      (2) Each chemical that would be used in the tagging system is--

        (A) approved for use under the Toxic Substances Control Act (15 U.S.C. 2601 et seq.); and

        (B) substantially similar to the fuel to which added, as determined in accordance with criteria established by the Environmental Protection Agency for the introduction of additives into hydrocarbon fuels.

      (3) The tagging system would permit a determination if a tag is present and a determination if the concentration of a tag has changed in order to facilitate identification of tagged fuels and detection of dilution of tagged fuels.

      (4) The tagging system would not impair or degrade the suitability of tagged fuels for their intended use.

    (c) RECOMMENDATIONS- The report shall include any recommendations for legislation relating to the tagging of hydrocarbon fuels by the Department of Defense that the Secretary considers appropriate.

Subtitle E--Armed Forces Retirement Home

SEC. 1041. APPOINTMENT OF DIRECTOR AND DEPUTY DIRECTOR OF THE NAVAL HOME.

    (a) APPOINTMENT AND QUALIFICATIONS OF DIRECTOR AND DEPUTY DIRECTOR- Subsection (a) of section 1517 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 417) is amended--

      (1) in paragraph (2)--

        (A) by striking out ‘Each Director’ and inserting in lieu thereof ‘The Director of the United States Soldiers’ and Airmen’s Home’; and

        (B) by striking out subparagraph (B) and inserting in lieu thereof the following:

      ‘(B) meet the requirements of paragraph (4).’;

      (2) by redesignating paragraph (3) as paragraph (5); and

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

    ‘(3) The Director, and any Deputy Director, of the Naval Home shall be appointed by the Secretary of Defense from among persons recommended by the Secretaries of the military departments who--

      ‘(A) in the case of the position of Director, are commissioned officers of the Armed Forces serving on active duty in a pay grade above O-5;

      ‘(B) in the case of the position of Deputy Director, are commissioned officers of the Armed Forces serving on active duty in a pay grade above O-4; and

      ‘(C) meet the requirements of paragraph (4).

    ‘(4) Each Director shall have appropriate leadership and management skills, an appreciation and understanding of the culture and norms associated with military service, and significant military background.’.

    (b) TERM OF DIRECTOR AND DEPUTY DIRECTOR- Subsection (c) of such section is amended--

      (1)bystrikingout‘(c)TERMOFDIRECTOR- ’ and all that follows through ‘A Director’ in the second sentence and inserting in lieu thereof ‘(c) TERMS OF DIRECTORS- (1) The term of office of the Director of the United States Soldiers’ and Airmen’s Home shall be five years. The Director’; and

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

    ‘(2) The Director and the Deputy Director of the Naval Home shall serve at the pleasure of the Secretary of Defense.’.

    (c) DEFINITIONS- Such section is further amended by adding at the end the following new subsection:

    ‘(g) DEFINITIONS- In this section:

      ‘(1) The term ‘United States Soldiers’ and Airmen’s Home’ means the separate facility of the Retirement Home that is known as the United States Soldiers’ and Airmen’s Home.

      ‘(2) The term ‘Naval Home’ means the separate facility of the Retirement Home that is known as the Naval Home.’.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 1998.

SEC. 1042. REVISION OF INSPECTION REQUIREMENTS RELATING TO ARMED FORCES RETIREMENT HOME.

    (a) INSPECTION BY INSPECTORS GENERAL OF THE MILITARY DEPARTMENTS- Section 1518 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 418) is amended to read as follows:

‘SEC. 1518. INSPECTION OF RETIREMENT HOME.

    ‘(a) TRIENNIAL INSPECTION- Every three years the Inspector General of a military department shall inspect the Retirement Home, including the records of the Retirement Home.

    ‘(b) ALTERNATING DUTY AMONG INSPECTORS GENERAL- The duty to inspect the Retirement Home shall alternate among the Inspector General of the Army, the Naval Inspector General, and the Inspector General of the Air Force on such schedule as the Secretary of Defense shall direct.

    ‘(c) REPORTS- Not later than 45 days after completing an inspection under subsection (a), the Inspector General carrying out the inspection shall submit to the Retirement Home Board, the Secretary of Defense, and Congress a report describing the results of the inspection and containing such recommendations as the Inspector General considers appropriate.’.

    (b) FIRST INSPECTION- The first inspection under section 1518 of the Armed Forces Retirement Home Act of 1991, as amended by subsection (a), shall be carried out during fiscal year 1999.

SEC. 1043. CLARIFICATION OF LAND CONVEYANCE AUTHORITY, ARMED FORCES RETIREMENT HOME.

    Section 1053 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2650) is amended--

      (1) in subsection (a), by striking out ‘may convey, by sale or otherwise,’ and inserting in lieu thereof ‘shall convey by sale’; and

      (2) by striking out subsection (b) and inserting in lieu thereof the following new subsection (b):

    ‘(b) MANNER, TERMS AND CONDITIONS OF DISPOSAL- (1) The sale under subsection (a) shall be made to a neighboring nonprofit organization from whose extensive educational and charitable services the public benefits and has benefited from for more than 100 years, or an entity or entities related to such organization, and whose substantial investment in the neighborhood is consistent with the continued existence and purpose of the Armed Forces Retirement Home.

    ‘(2) As consideration for the real property conveyance under subsection (a), the purchaser selected under paragraph (1) shall pay to the United States an amount equal to the fair market value of the real property at its highest and best economic use, as determined by the Armed Forces Retirement Home Board, based on an independent appraisal.’.

Subtitle F--Matters Relating to Defense Property

SEC. 1051. PLAN FOR IMPROVED DEMILITARIZATION OF EXCESS AND SURPLUS DEFENSE PROPERTY.

    (a) PLAN REQUIRED- Not later than March 1, 1999, the Secretary of Defense shall submit to Congress a plan to address the problems with the sale or other disposal of excess and surplus defense materials identified in the report submitted to Congress by the Secretary of Defense on June 5, 1998, pursuant to section 1067 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1896). The plan shall provide for the following:

      (1) Implementation for all appropriate Department personnel of the mandatory demilitarization training specified in Department of Defense revised manual 4160.21-M-1.

      (2) Improvement of oversight of the performance of demilitarization functions and the maintenance of demilitarization codes throughout the life cycle of defense materials.

      (3) Assignment of accurate demilitarization codes and the issuance of accurate demilitarization execution instructions during the system planning phases of the acquisition process.

      (4) Implementation of such recommendations of the Defense Science Board task force appointed by the Under Secretary of Defense for Acquisition and Technology to consider the control of military excess and surplus property as the Secretary of Defense considers to be appropriate.

    (b) DEMILITARIZATION TRAINING- In connection with the demilitarization training that is required to be addressed in the plan, the Secretary shall indicate the time frame for full implementation of such training and the number of Department of Defense personnel to be trained.

    (c) CENTRALIZED DEMILITARIZATION FUNCTIONS- In connection with the matters specified in paragraphs (2) and (3) of subsection (a) that are required to be addressed in the plan, the Secretary shall consider options for the centralization of demilitarization functions and responsibilities in a single office or agency. The Secretary shall specify in the plan the responsible office or agency, and indicate the time frame for centralizing demilitarization functions and responsibilities, unless the Secretary determines that it is not practical or appropriate to centralize demilitarization functions and responsibilities, in which case the Secretary shall provide the reasons for the determination.

    (d) DRAFT LEGISLATION- The Secretary shall include in the plan any draft legislation that the Secretary considers appropriate to clarify the authority of the Government to recover critical and sensitive defense property that has been inadequately demilitarized.

    (e) RELATED REPORTS- (1) The Secretary shall submit with the plan--

      (A) a copy of recommendations of the Defense Science Board task force referred to in subsection (a)(4); and

      (B) a copy of the report prepared by an independent contractor in accordance with the Secretary’s report referred to in subsection (a), at the request of the Defense Logistics Agency, to address options for centralizing demilitarization responsibilities, including a central demilitarization office and a central system for coding and maintaining demilitarization codes through the life cycle of the property involved.

    (2) With respect to the report of the independent contractor described in paragraph (1)(B), the Secretary shall provide an evaluation of the recommendations contained in the report and any plans by the Secretary for implementing the recommendations.

SEC. 1052. TRANSFER OF F-4 PHANTOM II AIRCRAFT TO FOUNDATION.

    (a) AUTHORITY- The Secretary of the Air Force may convey, without consideration, to the Collings Foundation, Stow, Massachusetts (in this section referred to as the ‘foundation’), all right, title, and interest of the United States in and to one surplus F-4 Phantom II aircraft. The conveyance shall be made by means of a conditional deed of gift.

    (b) CONDITION OF AIRCRAFT- The Secretary may not convey ownership of the aircraft under subsection (a) until the Secretary determines that the foundation has altered the aircraft in such manner as the Secretary determines necessary to ensure that the aircraft does not have any capability for use as a platform for launching or releasing munitions or any other combat capability that it was designed to have. The Secretary is not required to repair or alter the condition of the aircraft before conveying ownership of the aircraft.

    (c) REVERTER UPON BREACH OF CONDITIONS- The Secretary shall include in the instrument of conveyance of the aircraft--

      (1) a condition that the foundation not convey any ownership interest in, or transfer possession of, the aircraft to any other party without the prior approval of the Secretary;

      (2) a condition that the foundation operate and maintain the aircraft in compliance with all applicable limitations and maintenance requirements imposed by the Administrator of the Federal Aviation Administration; and

      (3) a condition that if the Secretary determines at any time that the foundation has conveyed an ownership interest in, or transferred possession of, the aircraft to any other party without the prior approval of the Secretary, or has failed to comply with the condition set forth in paragraph (2), all right, title, and interest in and to the aircraft, including any repair or alteration of the aircraft, shall revert to the United States, and the United States shall have the right of immediate possession of the aircraft.

    (d) CONVEYANCE AT NO COST TO THE UNITED STATES- The conveyance of an aircraft authorized by this section shall be made at no cost to the United States. Any costs associated with such conveyance, costs of determining compliance with subsection (b), and costs of operation and maintenance of the aircraft conveyed shall be borne by the foundation.

    (e) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.

    (f) CLARIFICATION OF LIABILITY- Notwithstanding any other provision of law, upon the conveyance of ownership of the F-4 Phantom II aircraft to the foundation under subsection (a), the United States shall not be liable for any death, injury, loss, or damage that results from any use of that aircraft by any person other than the United States.

Subtitle G--Other Department of Defense Matters

SEC. 1061. PILOT PROGRAM ON ALTERNATIVE NOTICE OF RECEIPT OF LEGAL PROCESS FOR GARNISHMENT OF FEDERAL PAY FOR CHILD SUPPORT AND ALIMONY.

    (a) PROGRAM REQUIRED- The Secretary of Defense shall conduct a pilot program on alternative notice procedures for withholding or garnishment of pay for the payment of child support and alimony under section 459 of the Social Security Act (42 U.S.C. 659).

    (b) PURPOSE- The purpose of the pilot program is to test the efficacy of providing notice in accordance with subsection (c) to the person whose pay is to be withheld or garnished.

    (c) AUTHORIZATION OF ALTERNATIVE TO PROVIDING COPY OF NOTICE OR SERVICE RECEIVED BY THE SECRETARY- (1) Under the pilot program, whenever the Secretary of Defense (acting through the DOD section 459 agent) provides a section 459 notice to an individual, the Secretary may include as part of that notice the information specified in subsection (e) in lieu of sending with that notice a copy (otherwise required pursuant to the parenthetical phrase in section 459(c)(2)(A) of the Social Security Act) of the notice or service received by the DOD section 459 agent with respect to that individual’s child support or alimony payment obligations.

    (2) Under the pilot program, whenever the Secretary of Defense (acting through the DOD section 5520a agent) provides a section 5520a notice to an individual, the Secretary may include as part of that notice the information specified in subsection (e) in lieu of sending with that notice a copy (otherwise required pursuant to the second parenthetical phrase in section 5520a(c) of title 5, United States Code) of the legal process received by the DOD section 5520a agent with respect to that individual.

    (d) DEFINITIONS- For purposes of this section:

      (1) DOD SECTION 459 AGENT- The term ‘DOD section 459 agent’ means the agent or agents designated by the Secretary of Defense under subsection (c)(1)(A) of section 459 of the Social Security Act (42 U.S.C. 659) to receive orders and accept service of process in matters related to child support or alimony.

      (2) SECTION 459 NOTICE- The term ‘section 459 notice’ means, with respect to the Department of Defense, the notice required by subsection (c)(2)(A) of section 459 of the Social Security Act (42 U.S.C. 659) to be sent to an individual in writing upon the receipt by the DOD section 459 agent of notice or service with respect to the individual’s child support or alimony payment obligations.

      (3) DOD SECTION 5520A AGENT- The term ‘DOD section 5520a agent’ means a person who is designated by law or regulation to accept service of process to which the Department of Defense is subject under section 5520a of title 5, United States Code (including the regulations promulgated under subsection (k) of that section).

      (4) SECTION 5520A NOTICE- The term ‘section 5520a notice’ means, with respect to the Department of Defense, the notice required by subsection (c) of section 5520a of title 5, United States Code, to be sent in writing to an employee (or, pursuant to the regulations promulgated under subsection (k) of that section, to a member of the Armed Forces) upon the receipt by the DOD section 5520a agent of legal process covered by that section.

    (e) ALTERNATIVE REQUIREMENTS- The information referred to in subsection (c) that is to be included as part of a section 459 notice or section 5520a notice sent to an individual (in lieu of sending with that notice a copy of the notice or service received by the DOD section 459 agent or the DOD section 5520a agent) is the following:

      (1) A description of the pertinent court order, notice to withhold, or other order, process, or interrogatory received by the DOD section 459 agent or the DOD section 5520a agent.

      (2) The identity of the court or judicial forum involved and (in the case of a notice or process concerning the ordering of a support or alimony obligation) the case number, the amount of the obligation, and the name of the beneficiary.

      (3) Information on how the individual may obtain from the Department of Defense a copy of the notice, service, or legal process, including an address and telephone number that the individual may be contacted for the purpose of obtaining such a copy.

    (f) PERIOD OF PILOT PROGRAM- The Secretary shall commence the pilot program not later than 90 days after the date of the enactment of this Act. The pilot program shall terminate on September 30, 2001.

    (g) REPORT- Not later than January 1, 2001, the Secretary shall submit to Congress a report describing the experience of the Department of Defense under the authority provided by this section. The report shall include the following:

      (1) The number of section 459 notices provided by the DOD section 459 agent during the period the authority provided by this section was in effect.

      (2) The number of individuals who requested the DOD section 459 agent to provide to them a copy of the actual notice or service.

      (3) Any complaint the Secretary received by reason of not having provided the actual notice or service in the section 459 notice.

      (4) The number of section 5520a notices provided by the DOD section 5520a agent during the period the authority provided by this section was in effect.

      (5) The number of individuals who requested the DOD section 5520a agent to provide to them a copy of the actual legal process.

      (6) Any complaint the Secretary received by reason of not having provided the actual legal process in the section 5520a notice.

SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN FORCES.

    (a) REQUIREMENT FOR PRIOR APPROVAL OF SECRETARY OF DEFENSE- Subsection (c) of section 2011 of title 10, United States Code, is amended by inserting after the first sentence the following new sentence: ‘The regulations shall require that training activities may be carried out under this section only with the prior approval of the Secretary of Defense.’.

    (b) ELEMENTS OF ANNUAL REPORT- Subsection (e) of such section is amended by adding at the end the following new paragraphs:

      ‘(5) A summary of the expenditures under this section resulting from the training for which expenses were paid under this section.

      ‘(6) A discussion of the unique military training benefit to United States special operations forces derived from the training activities for which expenses were paid under this section.’.

SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

    (a) UNITED STATES MILITARY ACADEMY- (1) Chapter 403 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 4358. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees

    ‘(a) ACCEPTANCE OF RESEARCH GRANTS- The Secretary of the Army may authorize the Superintendent of the Academy to accept qualifying research grants under this section. Any such grant may only be accepted if the work under the grant is to be carried out by a professor or instructor of the Academy for a scientific, literary, or educational purpose.

    ‘(b) QUALIFYING GRANTS- A qualifying research grant under this section is a grant that is awarded on a competitive basis by an entity referred to in subsection (c) for a research project with a scientific, literary, or educational purpose.

    ‘(c) ENTITIES FROM WHICH GRANTS MAY BE ACCEPTED- A grant may be accepted under this section only from a corporation, fund, foundation, educational institution, or similar entity that is organized and operated primarily for scientific, literary, or educational purposes.

    ‘(d) ADMINISTRATION OF GRANT FUNDS- The Secretary shall establish an account for administering funds received as research grants under this section. The Superintendent shall use the funds in the account in accordance with applicable regulations and the terms and conditions of the grants received.

    ‘(e) RELATED EXPENSES- Subject to such limitations as may be provided in appropriations Acts, appropriations available for the Academy may be used to pay expenses incurred by the Academy in applying for, and otherwise pursuing, award of a qualifying research grant.

    ‘(f) REGULATIONS- The Secretary of the Army shall prescribe regulations for the administration of this section.’.

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

      ‘4358. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees.’.

    (b) UNITED STATES NAVAL ACADEMY- (1) Chapter 603 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 6977. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees

    ‘(a) ACCEPTANCE OF RESEARCH GRANTS- The Secretary of the Navy may authorize the Superintendent of the Academy to accept qualifying research grants under this section. Any such grant may only be accepted if the work under the grant is to be carried out by a professor or instructor of the Academy for a scientific, literary, or educational purpose.

    ‘(b) QUALIFYING GRANTS- A qualifying research grant under this section is a grant that is awarded on a competitive basis by an entity referred to in subsection (c) for a research project with a scientific, literary, or educational purpose.

    ‘(c) ENTITIES FROM WHICH GRANTS MAY BE ACCEPTED- A grant may be accepted under this section only from a corporation, fund, foundation, educational institution, or similar entity that is organized and operated primarily for scientific, literary, or educational purposes.

    ‘(d) ADMINISTRATION OF GRANT FUNDS- The Secretary shall establish an account for administering funds received as research grants under this section. The Superintendent shall use the funds in the account in accordance with applicable regulations and the terms and conditions of the grants received.

    ‘(e) RELATED EXPENSES- Subject to such limitations as may be provided in appropriations Acts, appropriations available for the Academy may be used to pay expenses incurred by the Academy in applying for, and otherwise pursuing, award of a qualifying research grant.

    ‘(f) REGULATIONS- The Secretary of the Navy shall prescribe regulations for the administration of this section.’.

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

      ‘6977. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees.’.

    (c) UNITED STATES AIR FORCE ACADEMY- (1) Chapter 903 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 9357. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees

    ‘(a) ACCEPTANCE OF RESEARCH GRANTS- The Secretary of the Air Force may authorize the Superintendent of the Academy to accept qualifying research grants under this section. Any such grant may only be accepted if the work under the grant is to be carried out by a professor or instructor of the Academy for a scientific, literary, or educational purpose.

    ‘(b) QUALIFYING GRANTS- A qualifying research grant under this section is a grant that is awarded on a competitive basis by an entity referred to in subsection (c) for a research project with a scientific, literary, or educational purpose.

    ‘(c) ENTITIES FROM WHICH GRANTS MAY BE ACCEPTED- A grant may be accepted under this section only from a corporation, fund, foundation, educational institution, or similar entity that is organized and operated primarily for scientific, literary, or educational purposes.

    ‘(d) ADMINISTRATION OF GRANT FUNDS- The Secretary shall establish an account for administering funds received as research grants under this section. The Superintendent shall use the funds in the account in accordance with applicable regulations and the terms and conditions of the grants received.

    ‘(e) RELATED EXPENSES- Subject to such limitations as may be provided in appropriations Acts, appropriations available for the Academy may be used to pay expenses incurred by the Academy in applying for, and otherwise pursuing, award of a qualifying research grant.

    ‘(f) REGULATIONS- The Secretary of the Air Force shall prescribe regulations for the administration of this section.’.

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

      ‘9357. Grants for faculty research for scientific, literary, and educational purposes: acceptance; authorized grantees.’.

SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

    (a) FINDING- Congress finds that the report submitted to Congress by the Secretary of Defense on April 2, 1998, regarding the reallocation of the frequency spectrum used or dedicated to the Department of Defense and the intelligence community does not include a discussion of the costs to the Department of Defense that are associated with past and potential future reallocations of the frequency spectrum, although such a discussion was to be included in the report as directed in connection with the enactment of the National Defense Authorization Act for Fiscal Year 1998.

    (b) ADDITIONAL REPORT- The Secretary of Defense shall, not later than October 31, 1998, submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report that discusses the costs referred to in subsection (a).

    (c) RELOCATION OF FEDERAL FREQUENCIES- Section 113(g)(1) of the National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(g)(1)) is amended--

      (1) by striking out ‘(1) IN GENERAL- In order’ and inserting in lieu thereof the following:

      ‘(1) IN GENERAL-

        ‘(A) AUTHORITY OF FEDERAL ENTITIES TO ACCEPT COMPENSATION- In order’;

      (2) in subparagraph (A), as so designated, by striking out the second, third, and fourth sentences and inserting in lieu thereof the following: ‘Any such Federal entity which proposes to so relocate shall notify the NTIA, which in turn shall notify the Commission, before the auction concerned of the marginal costs anticipated to be associated with such relocation or with modifications necessary to accommodate prospective licensees. The Commission in turn shall notify potential bidders of the estimated relocation or modification costs based on the geographic area covered by the proposed licenses before the auction.’; and

      (3) by adding at the end the following:

        ‘(B) REQUIREMENT TO COMPENSATE FEDERAL ENTITIES- Any person on whose behalf a Federal entity incurs costs under subparagraph (A) shall compensate the Federal entity in advance for such costs. Such compensation may take the form of a cash payment or in-kind compensation.

        ‘(C) DISPOSITION OF PAYMENTS-

          ‘(i) PAYMENT BY ELECTRONIC FUNDS TRANSFER- A person making a cash payment under this paragraph shall make the cash payment by depositing the amount of the payment by electronic funds transfer in the account of the Federal entity concerned in the Treasury of the United States or in another account as authorized by law.

          ‘(ii) AVAILABILITY- Subject to the provisions of authorization Acts and appropriations Acts, amounts deposited under this subparagraph shall be available to the Federal entity concerned to pay directly the costs of relocation under this paragraph, to repay or make advances to appropriations or funds which do or will initially bear all or part of such costs, or to refund excess sums when necessary.

        ‘(D) APPLICATION TO CERTAIN OTHER RELOCATIONS- The provisions of this paragraph also apply to any Federal entity that operates a Federal Government station assigned to used electromagnetic spectrum identified for reallocation under subsection (a) if before August 5, 1997, the Commission has not identified that spectrum for service or assigned licenses or otherwise authorized service for that spectrum.

        ‘(E) IMPLEMENTATION PROCEDURES- The NTIA and the Commission shall develop procedures for the implementation of this paragraph, which procedures shall include a process for resolving any differences that arise between the Federal Government and commercial licensees regarding estimates of relocation or modification costs under this paragraph.

        ‘(F) INAPPLICABILITY TO CERTAIN RELOCATIONS- With the exception of the band of frequencies located at 1710-1755 megahertz, the provisions of this paragraph shall not apply to Federal spectrum identified for reallocation in the first reallocation report submitted to the President and Congress under subsection (a).’.

    (d) REPORTS ON COSTS OF RELOCATIONS- The head of each department or agency of the Federal Government shall include in the annual budget submission of such department or agency to the Director of the Office of Management and Budget a report assessing the costs to be incurred by such department or agency as a result of any frequency relocations of such department or agency that are anticipated under section 113 of the National Telecommunications Information Administration Organization Act (47 U.S.C. 923) as of the date of such report.

SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.

    (a) REPORT REQUIRED- Not later than March 31, 1999, the Secretary of Defense shall submit to Congress a report on the roles of the Office of the Secretary of Defense and of the Joint Staff in the investigation of Department of Defense aviation accidents.

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

      (1) An assessment of whether the Office of the Secretary of Defense and the Joint Staff should have more direct involvement in the investigation of military aviation accidents.

      (2) The advisability of the Office of the Secretary of Defense, the Joint Staff, or another Department of Defense entity independent of the military departments supervising the conduct of aviation accident investigations.

      (3) An assessment of the minimum training and experience required for aviation accident investigation board presidents and board members.

      (4) An assessment whether or not the procedures for sharing the results of military aviation accident investigations among the military departments should be improved.

      (5) An assessment of the advisability of centralized training and instruction for military aircraft accident investigators.

    (c) UNIFORM REGULATIONS FOR PROVISION OF ACCIDENT INVESTIGATION UPDATE INFORMATION- The Secretary of Defense shall prescribe regulations, which shall be applied uniformly across the Department of Defense, establishing procedures by which the military departments shall provide to the family members of any person involved in a military aviation accident periodic update reports on the conduct and progress of investigations into the accident.

SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER WING OF NEW YORK AIR NATIONAL GUARD.

    (a) INVESTIGATION- The Inspector General of the Department of Defense shall conduct a new investigation into the circumstances that led to the December 1, 1995, grounding of the 174th Fighter Wing of the New York Air National Guard. The investigation shall review those circumstances, examine the administrative and disciplinary actions taken against members of that wing, and determine whether those administrative and disciplinary measures were appropriate.

    (b) REPORT- Not later than 180 days after the date of the enactment of this Act, the Inspector General shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report describing the results of the investigation under subsection (a).

SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) LIMITATION ON EXPENDITURES- Subsection (f) of section 1083 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is amended to read as follows:

    ‘(f) LIMITATION ON EXPENDITURES- The total amount expended by the Department of Defense to carry out the commemorative program for fiscal year 1999 may not exceed $1,820,000.’.

    (b) REDESIGNATION OF COMMEMORATION ACCOUNT- The account in the Treasury known as the ‘Department of Defense Korean Conflict Commemoration Account’ is redesignated as the ‘Department of Defense Korean War Commemoration Account’.

    (c) OTHER REFERENCES TO KOREAN WAR- Such section is further amended--

      (1) in the section heading, by striking out ‘korean conflict’ and inserting in lieu thereof ‘korean war’;

      (2) by striking out ‘Korean conflict’ each place it appears and inserting in lieu thereof ‘Korean War’;

      (3) in subsection (c), by striking out ‘names ‘The Department of Defense Korean Conflict Commemoration’,’ and inserting in lieu thereof ‘name the ‘Department of Defense Korean War Commemoration’,’; and

      (4) in subsection (d)(1), by striking out ‘Korean Conflict’ and inserting in lieu thereof ‘Korean War’.

    (d) CROSS REFERENCES- Any reference to the Department of Defense Korean Conflict Commemoration or the Department of Defense Korean Conflict Commemoration Account in any law, regulation, document, record, or other paper of the United States shall be considered to be a reference to the Department of Defense Korean War Commemoration or the Department of Defense Korean War Commemoration Account, respectively.

SEC. 1068. DESIGNATION OF AMERICA’S NATIONAL MARITIME MUSEUM.

    (a) IN GENERAL- America’s National Maritime Museum is comprised of those museums designated by law to be museums of America’s National Maritime Museum on the basis that they--

      (1) house a collection of maritime artifacts clearly representing the Nation’s maritime heritage; and

      (2) provide outreach programs to educate the public about the Nation’s maritime heritage.

    (b) INITIAL DESIGNATION OF MUSEUMS- The following museums (meeting the criteria specified in subsection (a)) are hereby designated as museums of America’s National Maritime Museum:

      (1) The Mariners’ Museum, located at 100 Museum Drive, Newport News, Virginia.

      (2) The South Street Seaport Museum, located at 207 Front Street, New York, New York.

    (c) FUTURE DESIGNATION OF OTHER MUSEUMS NOT PRECLUDED- The designation of the museums referred to in subsection (b) as museums of America’s National Maritime Museum does not preclude the designation by law after the date of the enactment of this Act of any other museum that meets the criteria specified in subsection (a) as a museum of America’s National Maritime Museum.

    (d) REFERENCE TO MUSEUMS- Any reference in any law, map, regulation, document, paper, or other record of the United States to a museum designated by law to be a museum of America’s National Maritime Museum shall be deemed to be a reference to that museum as a museum of America’s National Maritime Museum.

SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) TITLE 10, UNITED STATES CODE- Title 10, United States Code, is amended as follows:

      (1) The item relating to section 484 in the table of sections at the beginning of chapter 23 is amended to read as follows:

      ‘484. Annual report on aircraft inventory.’.

      (2) Section 517(a) is amended by striking out ‘Except as provided in section 307 of title 37, the’ and inserting in lieu thereof ‘The’.

      (3) The item relating to section 2302c in the table of sections at the beginning of chapter 137 is amended to read as follows:

      ‘2302c. Implementation of electronic commerce capability.’.

      (4) The table of subchapters at the beginning of chapter 148 is amended--

        (A) by striking out ‘2491’ in the item relating to subchapter I and inserting in lieu thereof ‘2500’; and

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

        ‘IV. Manufacturing Technology

--2521’.

      (5) The subchapter heading for subchapter IV of chapter 148 is amended to read as follows:

‘SUBCHAPTER IV--MANUFACTURING TECHNOLOGY’

      (6) Section 7045(c) is amended by striking out ‘the’ after ‘are subject to’.

      (7) Section 7572(b) is repealed.

      (8) Section 12683(b)(2) is amended by striking out ‘; or’ at the end and inserting in lieu thereof a period.

    (b) PUBLIC LAW 105-85- Effective as of November 18, 1997, and as if included therein as enacted, the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) is amended as follows:

      (1) Section 389(g) (111 Stat. 1715) is amended by striking out ‘Secretary of Defense’ and inserting in lieu thereof ‘Comptroller General’.

      (2) Section 1006(a) (111 Stat. 1869) is amended by striking out ‘or’ in the quoted matter and inserting in lieu thereof ‘and’.

      (3) Section 3133(b)(3) (111 Stat. 2036) is amended by striking out ‘III’ and inserting in lieu thereof ‘XIV’.

    (c) DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION ACT OF 1996- The Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-201) is amended as follows:

      (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 Stat. 2726) is amended by striking out ‘(22 U.S.C. 2156a(c))’ and inserting in lieu thereof ‘(42 U.S.C. 2139a(c))’.

      (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 Stat. 2727) is amended by striking out ‘established under section 1342’ and inserting in lieu thereof ‘of the National Security Council’.

      (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) is amended by striking out ‘1341’ and ‘1342’ and inserting in lieu thereof ‘1441’ and ‘1442’, respectively.

      (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 2730) is amended by striking out ‘the National Defense Authorization Act for Fiscal Years 1993 and 1994’ and inserting in lieu thereof ‘title XIV of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 22 U.S.C. 5901 et seq.)’.

    (d) OTHER ACTS-

      (1) Section 18(c)(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)(1)) is amended by striking out the period at the end of subparagraph (A) and inserting in lieu thereof a semicolon.

      (2) Section 3(c)(2) of Public Law 101-533 (22 U.S.C. 3142(c)(2)) is amended by striking out ‘included in the most recent plan submitted to the Congress under section 2506 of title 10’ and inserting in lieu thereof ‘identified in the most recent assessment prepared under section 2505 of title 10’.

    (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.

Subtitle H--Other Matters

SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    (a) IN GENERAL- Section 1205(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1285(b)), is amended by adding at the end the following new sentence: ‘The signature of the President (or of an official designated by the President) on the agreement shall be treated as an expression of the approval required under section 1202(a) to provide the insurance.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply only to a signature of the President (or of an official designated by the President) on or after the date of the enactment of this Act.

SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.

    (a) EXTENSION OF TERMINATION DATE- Section 717(a) of the Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking ‘September 30, 1998’ and inserting ‘September 30, 1999’.

    (b) EXTENSION OF AUTHORIZATION- Section 711(b) of the Defense Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking ‘and 1998’ and inserting ‘1998, and 1999’.

SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE SECRETARY OF VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED STATES.

    (a) REQUIREMENT- Section 2301 of title 38, United States Code, as amended by section 517, is further amended by adding at the end the following new subsection:

    ‘(g)(1) The Secretary may not procure any flag for the purposes of this section that is not wholly produced in the United States.

    ‘(2)(A) The Secretary may waive the requirement of paragraph (1) if the Secretary determines--

      ‘(i) that the requirement cannot be reasonably met; or

      ‘(ii) that compliance with the requirement would not be in the national interest of the United States.

    ‘(B) The Secretary shall submit to Congress in writing notice of a determination under subparagraph (A) not later than 30 days after the date on which such determination is made.

    ‘(3) For the purpose of paragraph (1), a flag shall be considered to be wholly produced in the United States only if--

      ‘(A) the materials and components of the flag are entirely grown, manufactured, or created in the United States;

      ‘(B) the processing (including spinning, weaving, dyeing, and finishing) of such materials and components is entirely performed in the United States; and

      ‘(C) the manufacture and assembling of such materials and components into the flag is entirely performed in the United States.’.

    (b) EFFECTIVE DATE- Subsection (g) of section 2301 of title 38, United States Code, as added by subsection (a), shall apply to flags procured by the Secretary of Veterans Affairs for the purposes of section 2301 of title 38, United States Code, after the end of the 30-day period beginning on the date of the enactment of this Act.

SEC. 1074. SENSE OF CONGRESS CONCERNING TAX TREATMENT OF PRINCIPAL RESIDENCE OF MEMBERS OF ARMED FORCES WHILE AWAY FROM HOME ON ACTIVE DUTY.

    It is the sense of Congress that a member of the Armed Forces should be treated for purposes of section 121 of the Internal Revenue Code of 1986 as using property as a principal residence during any continuous period that the member is serving on active duty for 180 days or more with the Armed Forces, but only if the member used the property as a principal residence for any period during or immediately before that period of active duty.

SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO CERTAIN EMPLOYEES.

    (a) LIMITATION ON STATE AUTHORITY TO TAX COMPENSATION PAID TO INDIVIDUALS PERFORMING SERVICES AT FORT CAMPBELL, KENTUCKY-

      (1) IN GENERAL- Chapter 4 of title 4, United States Code, is amended by adding at the end the following:

‘Sec. 115. Limitation on State authority to tax compensation paid to individuals performing services at Fort Campbell, Kentucky

    ‘Pay and compensation paid to an individual for personal services at Fort Campbell, Kentucky, shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.’.

      (2) CONFORMING AMENDMENT- The table of sections for chapter 4 of title 4, United States Code, is amended by adding at the end the following:

      ‘115. Limitation on State authority to tax compensation paid to individuals performing services at Fort Campbell, Kentucky.’.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall apply to pay and compensation paid after the date of the enactment of this Act.

    (b) CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO CERTAIN FEDERAL EMPLOYEES-

      (1) IN GENERAL- Section 111 of title 4, United States Code, is amended--

        (A) by inserting ‘(a) GENERAL RULE- ’ before ‘The United States’ the first place it appears; and

        (B) by adding at the end the following:

    ‘(b) TREATMENT OF CERTAIN FEDERAL EMPLOYEES EMPLOYED AT FEDERAL HYDROELECTRIC FACILITIES LOCATED ON THE COLUMBIA RIVER- Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility--

      ‘(1) which is owned by the United States;

      ‘(2) which is located on the Columbia River; and

      ‘(3) portions of which are within the States of Oregon and Washington,

    shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.

    ‘(c) TREATMENT OF CERTAIN FEDERAL EMPLOYEES EMPLOYED AT FEDERAL HYDROELECTRIC FACILITIES LOCATED ON THE MISSOURI RIVER- Pay or compensation paid by the United States for personal services as an employee of the United States at a hydroelectric facility--

      ‘(1) which is owned by the United States;

      ‘(2) which is located on the Missouri River; and

      ‘(3) portions of which are within the States of South Dakota and Nebraska,

    shall be subject to taxation by the State or any political subdivision thereof of which such employee is a resident.’.

      (2) EFFECTIVE DATE- The amendment made by this subsection shall apply to pay and compensation paid after the date of the enactment of this Act.

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

      Sec.1101.Defense Advanced Research Projects Agency experimental personnel management program for technical personnel.

      Sec.1102.Maximum pay rate comparability for faculty members of the United States Air Force Institute of Technology.

      Sec.1103.Authority for release to Coast Guard of drug test results of civil service mariners of the Military Sealift Command.

      Sec.1104.Limitations on back pay awards.

      Sec.1105.Restoration of annual leave accumulated by civilian employees at installations in the Republic of Panama to be closed pursuant to the Panama Canal Treaty of 1977.

      Sec.1106.Repeal of program providing preference for employment of military spouses in military child care facilities.

      Sec.1107.Observance of certain holidays at duty posts outside the United States.

      Sec.1108.Continuation of random drug testing program for certain Department of Defense employees.

      Sec.1109.Department of Defense employee voluntary early retirement authority.

SEC. 1101. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY EXPERIMENTAL PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL PERSONNEL.

    (a) PROGRAM AUTHORIZED- During the 5-year period beginning on the date of the enactment of this Act, the Secretary of Defense may carry out a program of experimental use of the special personnel management authority provided in subsection (b) in order to facilitate recruitment of eminent experts in science or engineering for research and development projects administered by the Defense Advanced Research Projects Agency.

    (b) SPECIAL PERSONNEL MANAGEMENT AUTHORITY- Under the program, the Secretary may--

      (1) appoint scientists and engineers from outside the civil service and uniformed services (as such terms are defined in section 2101 of title 5, United States Code) to not more than 20 scientific and engineering positions in the Defense Advanced Research Projects Agency without regard to any provision of title 5, United States Code, governing the appointment of employees in the civil service;

      (2) prescribe the rates of basic pay for positions to which employees are appointed under paragraph (1) at rates not in excess of the maximum rate of basic pay authorized for senior-level positions under section 5376 of title 5, United States Code, notwithstanding any provision of such title governing the rates of pay or classification of employees in the executive branch; and

      (3) pay any employee appointed under paragraph (1) payments in addition to basic pay within the limit applicable to the employee under subsection (d)(1).

    (c) LIMITATION ON TERM OF APPOINTMENT- (1) Except as provided in paragraph (2), the service of an employee under an appointment under subsection (b)(1) may not exceed 4 years.

    (2) The Secretary may, in the case of a particular employee, extend the period to which service is limited under paragraph (1) by up to 2 years if the Secretary determines that such action is necessary to promote the efficiency of the Defense Advanced Research Projects Agency.

    (d) LIMITATIONS ON ADDITIONAL PAYMENTS- (1) The total amount of the additional payments paid to an employee under subsection (b)(3) for any 12-month period may not exceed the least of the following amounts:

      (A) $25,000.

      (B) The amount equal to 25 percent of the employee’s annual rate of basic pay.

      (C) The amount of the limitation that is applicable for a calendar year under section 5307(a)(1) of title 5, United States Code.

    (2) An employee appointed under subsection (b)(1) is not eligible for any bonus, monetary award, or other monetary incentive for service except for payments authorized under subsection (b)(3).

    (e) PERIOD OF PROGRAM- (1) The program authorized under this section shall terminate at the end of the 5-year period referred to in subsection (a).

    (2) After the termination of the program--

      (A) no appointment may be made under paragraph (1) of subsection (b);

      (B) a rate of basic pay prescribed under paragraph (2) of that subsection may not take effect for a position; and

      (C) no period of service may be extended under subsection (c)(1).

    (f) SAVINGS PROVISIONS- In the case of an employee who, on the day before the termination of the program, is serving in a position pursuant to an appointment under subsection (b)(1)--

      (1) the termination of the program does not terminate the employee’s employment in that position before the expiration of the lesser of--

        (A) the period for which the employee was appointed; or

        (B) the period to which the employee’s service is limited under subsection (c), including any extension made under paragraph (2) of that subsection before the termination of the program; and

      (2) the rate of basic pay prescribed for the position under subsection (b)(2) may not be reduced for so long (within the period applicable to the employee under paragraph (1)) as the employee continues to serve in the position without a break in service.

    (g) ANNUAL REPORT- (1) Not later than October 15 of each year, beginning in 1999 and ending in 2004, the Secretary of Defense shall submit a report on the program to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives. The report submitted in a year shall cover the 12-month period ending on the day before the anniversary, in that year, of the date of the enactment of this Act.

    (2) The annual report shall contain, for the period covered by the report, the following:

      (A) A detailed discussion of the exercise of authority under this section.

      (B) The sources from which individuals appointed under subsection (b)(1) were recruited.

      (C) The methodology used for identifying and selecting such individuals.

      (D) Any additional information that the Secretary considers helpful for assessing the utility of the authority under this section.

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is amended by striking out ‘section 5306(e)’ and inserting in lieu thereof ‘section 5373’.

SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST RESULTS OF CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT COMMAND.

    (a) IN GENERAL- Chapter 643 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 7479. Civil service mariners of Military Sealift Command: release of drug test results to Coast Guard

    ‘(a) RELEASE OF DRUG TEST RESULTS TO COAST GUARD- The Secretary of the Navy may release to the Commandant of the Coast Guard the results of a drug test of any employee of the Department of the Navy who is employed in any capacity on board a vessel of the Military Sealift Command. Any such release shall be in accordance with the standards and procedures applicable to the disclosure and reporting to the Coast Guard of drug tests results and drug test records of individuals employed on vessels documented under the laws of the United States.

    ‘(b) WAIVER- The results of a drug test of an employee may be released under subsection (a) without the prior written consent of the employee that is otherwise required under section 503(e) of the Supplemental Appropriations Act, 1987 (5 U.S.C. 7301 note).’.

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

      ‘7479. Civil service mariners of Military Sealift Command: release of drug test results to Coast Guard.’.

SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

    (a) In General- Section 5596(b) of title 5, United States Code, is amended--

      (1) by redesignating paragraph (4) as paragraph (5); and

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

    ‘(4) The pay, allowances, or differentials granted under this section for the period for which an unjustified or unwarranted personnel action was in effect shall not exceed that authorized by the applicable law, rule, regulations, or collective bargaining agreement under which the unjustified or unwarranted personnel action is found, except that in no case may pay, allowances, or differentials be granted under this section for a period beginning more than 6 years before the date of the filing of a timely appeal or, absent such filing, the date of the administrative determination.’.

    (b) CONFORMING AMENDMENT- Section 7121 of title 5, United States Code, is amended by adding at the end the following new subsection:

    ‘(h) Settlements and awards under this chapter shall be subject to the limitations in section 5596(b)(4) of this title.’.

SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN EMPLOYEES AT INSTALLATIONS IN THE REPUBLIC OF PANAMA TO BE CLOSED PURSUANT TO THE PANAMA CANAL TREATY OF 1977.

    Section 6304(d)(3)(A) of title 5, United States Code, is amended by inserting ‘the closure of an installation of the Department of Defense in the Republic of Panama in accordance with the Panama Canal Treaty of 1977,’ after ‘2687 note) during any period,’.

SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR EMPLOYMENT OF MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.

    Section 1792 of title 10, United States Code, is amended--

      (1) by striking out subsection (d); and

      (2) by redesignating subsection (e) as subsection (d).

SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS OUTSIDE THE UNITED STATES.

    Section 6103(b) of title 5, United States Code, is amended by inserting after paragraph (2) the following new paragraph:

      ‘(3) Instead of a holiday that is designated under subsection (a) to occur on a Monday, for an employee at a duty post outside the United States whose basic workweek is other than Monday through Friday, and for whom Monday is a regularly scheduled workday, the legal public holiday is the first workday of the workweek in which the Monday designated for the observance of such holiday under subsection (a) occurs.’.

SEC. 1108. CONTINUATION OF RANDOM DRUG TESTING PROGRAM FOR CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) CONTINUATION OF EXISTING PROGRAM- The Secretary of Defense shall continue to actively carry out the drug testing program, originally required by section 3(a) of Executive Order No. 12564 (51 Fed. Reg. 32889; September 15, 1986), involving civilian employees of the Department of Defense who are considered to be employees in sensitive positions. The Secretary shall comply with the drug testing procedures prescribed pursuant to section 4 of the Executive order.

    (b) TESTING UPON REASONABLE SUSPICION OF ILLEGAL DRUG USE- The Secretary of Defense shall ensure that the drug testing program referred to in subsection (a) authorizes the testing of a civilian employee of the Department of Defense for illegal drug use when there is a reasonable suspicion that the employee uses illegal drugs.

    (c) NOTIFICATION TO APPLICANTS- The Secretary of Defense shall notify persons who apply for employment with the Department of Defense that, as a condition of employment by the Department, the person may be required to submit to drug testing under the drug testing program required by Executive Order No. 12564 (51 Fed. Reg. 32889; September 15, 1986) pursuant to the terms of the Executive order.

    (d) DEFINITIONS- In this section, the terms ‘illegal drugs’ and ‘employee in a sensitive position’ have the meanings given such terms in section 7 of Executive Order No. 12564 (51 Fed. Reg. 32889; September 15, 1986).

SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT AUTHORITY.

    (a) CIVIL SERVICE RETIREMENT SYSTEM- Section 8336 of title 5, United States Code, is amended--

      (1) in subsection (d)(2), by inserting ‘except in the case of an employee described in subsection (o)(1),’ after ‘(2)’; and

      (2) by adding at the end the following:

    ‘(o)(1) An employee of the Department of Defense who is separated from the service under conditions described in paragraph (2) after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.

    ‘(2) Paragraph (1) applies to an employee who--

      ‘(A) has been employed continuously by the Department of Defense for more than 30 days before the date on which the Secretary concerned requests the determinations required under subparagraph (D)(i);

      ‘(B) is serving under an appointment that is not limited by time;

      ‘(C) has not received a decision notice of involuntary separation for misconduct or unacceptable performance that is pending decision; and

      ‘(D) is separated from the service voluntarily during a period in which--

        ‘(i) the Department of Defense or the military department or subordinate organization within the Department of Defense or military department in which the employee is serving is undergoing a major reorganization, a major reduction in force, or a major transfer of function, and employees comprising a significant percentage of the employees serving in that department or organization are to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions of law), as determined by the Office of Personnel Management (under regulations prescribed by the Office) upon the request of the Secretary concerned; and

        ‘(ii) the employee is within the scope of an offer of voluntary early retirement (as defined by organizational unit, occupational series or level, geographical location, any other similar factor that the Office of Personnel Management determines appropriate, or any combination of such definitions of scope), as determined by the Secretary concerned under regulations prescribed by the Office.

    ‘(3) In this subsection, the term ‘Secretary concerned’ means--

      ‘(A) the Secretary of Defense, with respect to an employee of the Department of Defense not employed in a position in a military department;

      ‘(B) the Secretary of the Army, with respect to an employee of the Department of the Army;

      ‘(C) the Secretary of the Navy, with respect to an employee of the Department of the Navy; and

      ‘(D) the Secretary of the Air Force, with respect to an employee of the Department of the Air Force.’.

    (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM- Section 8414 of such title is amended--

      (1) in subsection (b)(1)(B), by inserting ‘except in the case of an employee described in subsection (d)(1),’ after ‘(B)’; and

      (2) by adding at the end the following:

    ‘(d)(1) An employee of the Department of Defense who is separated from the service under conditions described in paragraph (2) after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.

    ‘(2) Paragraph (1) applies to an employee who--

      ‘(A) has been employed continuously by the Department of Defense for more than 30 days before the date on which the Secretary concerned requests the determinations required under subparagraph (D)(i);

      ‘(B) is serving under an appointment that is not limited by time;

      ‘(C) has not received a decision notice of involuntary separation for misconduct or unacceptable performance that is pending decision; and

      ‘(D) is separated from the service voluntarily during a period in which--

        ‘(i) the Department of Defense or the military department or subordinate organization within the Department of Defense or military department in which the employee is serving is undergoing a major reorganization, a major reduction in force, or a major transfer of function, and employees comprising a significant percentage of the employees serving in that department or organization are to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions of law), as determined by the Office of Personnel Management (under regulations prescribed by the Office) upon the request of the Secretary concerned; and

        ‘(ii) the employee is within the scope of an offer of voluntary early retirement (as defined by organizational unit, occupational series or level, geographical location, any other similar factor that the Office of Personnel Management determines appropriate, or any combination of such definitions of scope), as determined by the Secretary concerned under regulations prescribed by the Office.

    ‘(3) In this subsection, the term ‘Secretary concerned’ means--

      ‘(A) the Secretary of Defense, with respect to an employee of the Department of Defense not employed in a position in a military department;

      ‘(B) the Secretary of the Army, with respect to an employee of the Department of the Army;

      ‘(C) the Secretary of the Navy, with respect to an employee of the Department of the Navy; and

      ‘(D) the Secretary of the Air Force, with respect to an employee of the Department of the Air Force.’.

    (c) CONFORMING AMENDMENTS- (1) Section 8339(h) of such title is amended by striking out ‘or (j)’ in the first sentence and inserting in lieu thereof ‘(j), or (o)’.

    (2) Section 8464(a)(1)(A)(i) of such title is amended by striking out ‘or (b)(1)(B)’ and inserting in lieu thereof ‘, (b)(1)(B), or (d)’.

    (d) EFFECTIVE DATE; APPLICABILITY- The amendments made by this section--

      (1) shall take effect on October 1, 2000; and

      (2) shall apply with respect to an approval for voluntary early retirement made on or after that date.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

      Sec.1201.Findings.

      Sec.1202.Sense of Congress.

      Sec.1203.Presidential reports.

      Sec.1204.Secretary of Defense reports on operations in Bosnia and Herzegovina.

      Sec.1205.Definitions.

Subtitle B--Matters Relating to Contingency Operations

      Sec.1211.Report on involvement of Armed Forces in contingency and ongoing operations.

      Sec.1212.Submission of report on objectives of a contingency operation with requests for funding for the operation.

Subtitle C--Matters Relating to NATO and Europe

      Sec.1221.Limitation on United States share of costs of NATO expansion.

      Sec.1222.Report on military capabilities of an expanded NATO alliance.

      Sec.1223.Reports on the development of the European security and defense identity.

Subtitle D--Other Matters

      Sec.1231.Limitation on assignment of United States forces for certain United Nations purposes.

      Sec.1232.Prohibition on restriction of Armed Forces under Kyoto Protocol to the United Nations Framework Convention on Climate Change.

      Sec.1233.Defense burdensharing.

      Sec.1234.Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to foreign countries.

      Sec.1235.Transfers of naval vessels to certain foreign countries.

      Sec.1236.Repeal of landmine moratorium.

      Sec.1237.Application of authorities under the International Emergency Economic Powers Act to Communist Chinese military companies.

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

SEC. 1201. FINDINGS.

    Congress makes the following findings:

      (1) The contributions of the people of the United States and other nations have, in large measure, resulted in the suspension of fighting and alleviated the suffering of the people of Bosnia and Herzegovina since December 1995.

      (2) The United States has expended approximately $9,500,000,000 between 1992 and mid-1998 just in support of the United States military operations in Bosnia to achieve those results.

      (3) Efforts to restore the economy and political structure in Bosnia and Herzegovina have achieved some success in accordance with the Dayton Accords.

      (4) On March 3, 1998, the President certified to Congress (A) that the continued presence of United States forces in Bosnia and Herzegovina after June 30, 1998, was required in order to meet the national security interests of the United States, and (B) that United States Armed Forces will not serve as, or be used as, civil police in Bosnia and Herzegovina.

      (5) With that certification, the President submitted to Congress a report stating that the goal of the military presence in Bosnia and Herzegovina is to establish the conditions under which implementation of the Dayton Accords can continue without the support of a major NATO-led military force and setting forth the criteria for determining when that goal has been accomplished.

      (6) Since the administration has not specified how long achievement of that goal is expected to take, the mission of United States ground combat forces in Bosnia and Herzegovina is essentially of indefinite duration.

      (7) The NATO operations plan for the Stabilization Force (Operations Plan 10407, which went into effect on June 20, 1998, after approval by allied foreign ministers) incorporates all of the benchmarks set forth in the report referred to in paragraph (5) and states that the Stabilization Force will develop detailed criteria for assessing progress in achieving those benchmarks in close coordination with key international organizations participating in civilian implementation of the Dayton Accords.

      (8) The military representatives of NATO member nations have been tasked by the North Atlantic Council to provide estimates of the time likely to be required for implementation of the Dayton Accords.

      (9) NATO has decided to conduct formal reviews when appropriate (but at intervals of not more than 6 months) to assess the security situation and the progress being made in the implementation of the civil aspects of the Dayton Accords. Those reviews will enable the Alliance to make decisions as to reductions in the size or the Stabilization Force, leading to its eventual full withdrawal.

      (10) NATO has approved the creation of a multinational specialized unit of gendarmes or paramilitary police composed of European security forces to help promote public security in Bosnia and Herzegovina as a part of the post-June 1998 mission for the Stabilization Force.

      (11) The limit established for spending by the United States for the defense discretionary budget category for fiscal year 1998 in the Balanced Budget and Emergency Deficit Control Act of 1985 does not take into account the continued deployment of United States forces in Bosnia and Herzegovina after June 30, 1998, leading to the request by the President for emergency supplemental appropriations for the Bosnia and Herzegovina mission through September 30, 1998.

      (12) Amounts for Department of Defense operations in Bosnia and Herzegovina during fiscal year 1999 were not included in the budget of the President for fiscal year 1999, as submitted to Congress on February 2, 1998.

      (13) The President requested $1,858,600,000 in emergency appropriations in his March 4, 1998, amendment to the fiscal year 1999 budget to cover the shortfall in funding in fiscal year 1999 for the costs of extending the mission in Bosnia.

SEC. 1202. SENSE OF CONGRESS.

    (a) SENSE OF CONGRESS CONCERNING UNITED STATES FORCES AND ACCOMPLISHMENT OF TASKS IN BOSNIA AND HERZEGOVINA- It is the sense of Congress that--

      (1) United States ground combat forces should not remain in Bosnia and Herzegovina indefinitely in view of the worldwide commitments of the Armed Forces of the United States;

      (2) the President should work with NATO allies and the other nations whose military forces are participating in the NATO-led Stabilization Force to withdraw United States ground combat forces from Bosnia and Herzegovina within a reasonable period of time, consistent with the safety of those forces and the accomplishment of the Stabilization Force’s military tasks;

      (3) a NATO-led force without the participation of United States ground combat forces in Bosnia and Herzegovina might be suitable for a follow-on force for Bosnia and Herzegovina if the European Security and Defense Identity is not sufficiently developed or is otherwise considered inappropriate for such a mission; and

      (4) the United States may decide to provide appropriate support to a Western European Union-led or NATO-led follow-on force for Bosnia and Herzegovina, including command and control, intelligence, logistics, and, if necessary, a ready reserve force in the region.

    (b) SENSE OF CONGRESS CONCERNING PRESIDENTIAL ACTIONS- It is the sense of Congress that the President--

      (1) should inform the European NATO allies of the expression of the sense of Congress in subsection (a) and should strongly urge them to undertake preparations for establishing a Western European Union-led or a NATO-led force as a follow-on force to the Stabilization Force if needed to maintain peace and stability in Bosnia and Herzegovina; and

      (2) should consult closely with the congressional leadership and the congressional defense committees with respect to the progress being made toward achieving a sustainable peace in Bosnia and Herzegovina and the progress being made toward a reduction and ultimate withdrawal of United States ground combat forces from Bosnia and Herzegovina.

    (c) SENSE OF CONGRESS CONCERNING DEFENSE BUDGET- It is the sense of Congress that--

      (1) the President should include in the budget for the Department of Defense that the President submits to Congress under section 1105(a) of title 31, United States Code, for each fiscal year sufficient amounts to pay for any proposed continuation of the participation of United States forces in NATO operations in Bosnia and Herzegovina during that fiscal year; and

      (2) amounts included in the budget for the purpose stated in paragraph (1) should be over and above the defense discretionary estimates as identified in the Bipartisan Budget Agreement of May 16, 1997 and the fiscal year 1998 concurrent budget resolution and not be transferred from amounts in the budget of any other agency of the executive branch, but instead should be an overall increase in the budget for the Department of Defense and the discretionary spending limits in the Balanced Budget Act of 1997.

SEC. 1203. PRESIDENTIAL REPORTS.

    (a) REQUIRED REPORTS- The President shall ensure that the semiannual reports required by section 7(b) of the general provisions of chapter I of the 1998 Supplemental Appropriations and Rescissions Act (Public Law 105-174; 112 Stat. 64) are submitted to Congress in a timely manner as long as United States ground combat forces continue to participate in the Stabilization Force (SFOR). In addition, whenever the President submits to Congress a request for funds for continued operations of United States forces in Bosnia and Herzegovina, the President shall submit a supplemental report providing information to update Congress on developments since the last semiannual report.

    (b) REQUIRED INFORMATION- In addition to the information required by the section referred to in subsection (a) to be included in a report under that section, each report under that section or under subsection (a) shall include the following:

      (1) The expected duration of the deployment of United States ground combat forces in Bosnia and Herzegovina in support of implementation of the benchmarks set forth in the President’s report of March 3, 1998 (referred to in section 1201(5)) for achieving a sustainable peace process.

      (2) The percentage of those benchmarks that have been completed as of the date of the report, the percentage that are expected to be completed within the next reporting period, and the expected time for completion of the remaining tasks.

      (3) The status of the NATO force of gendarmes or paramilitary police, including the mission of the force, the composition of the force, and the extent, if any, to which members of the Armed Forces of the United States are participating (or are to participate) in the force.

      (4) The military and nonmilitary missions that the President has directed for United States forces in Bosnia and Herzegovina, including a specific discussion of--

        (A) the mission of those forces, if any, in connection with the pursuit and apprehension of war criminals;

        (B) the mission of those forces, if any, in connection with civilian police functions;

        (C) the mission of those forces, if any, in connection with the resettlement of refugees; and

        (D) the missions undertaken by those forces, if any, in support of international and local civilian authorities.

      (5) An assessment of the risk for the United States forces in Bosnia and Herzegovina, including, for each mission identified pursuant to paragraph (4), the assessment of the Chairman of the Joint Chiefs of Staff regarding the nature and level of risk of the mission for the safety and well-being of United States military personnel.

      (6) An assessment of the cost to the United States, by fiscal year, of carrying out the missions identified pursuant to paragraph (4) and a detailed projection of any additional funding that will be required by the Department of Defense to meet mission requirements for those operations for the remainder of the fiscal year.

      (7) A joint assessment by the Secretary of Defense and the Secretary of State of the status of planning for--

        (A) the assumption of all remaining military missions inside Bosnia and Herzegovina by European military and paramilitary forces; and

        (B) the establishment and support of a forward-based United States rapid response force outside of Bosnia and Herzegovina that would be capable of deploying rapidly to defeat military threats to a European follow-on force inside Bosnia and Herzegovina and of providing whatever logistical, intelligence, and air support is needed to ensure that a European follow-on force is fully capable of accomplishing its missions under the Dayton Accords.

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN BOSNIA AND HERZEGOVINA.

    (a) REPORT ON EFFECTS ON CAPABILITIES OF UNITED STATES MILITARY FORCES- Not later than December 15, 1998, the Secretary of Defense shall submit to the congressional defense committees a report on the effects of military operations in Bosnia and Herzegovina and the Balkans region on the capabilities of United States military forces. The report shall, in particular, describe the effects of those operations on the capability of United States military forces to conduct successfully two nearly simultaneous major theater wars as specified in current Defense Planning Guidance and in accordance with the deployment timelines called for in the war plans of the commanders of the unified combatant commands.

    (b) ADDITIONAL REPORTS- Whenever the number of United States ground combat forces in Bosnia and Herzegovina increases or decreases by 20 percent or more compared to the number of such forces as of the most recent previous report under this section, the Secretary shall submit an additional report as specified in subsection (a). Any such additional report shall be submitted within 30 days of the date on which the requirement to submit the report becomes effective under the preceding sentence.

    (c) MATTERS TO BE INCLUDED- The Secretary shall include in each report under this section information with respect to the effects of military operations in Bosnia and Herzegovina and the Balkans region on the capabilities of United States military forces to conduct successfully two nearly simultaneous major theater wars as specified in current Defense Planning Guidance and in accordance with the deployment timelines called for in the war plans of the commanders of the unified combatant commands. Such information shall include information on the effects of those operations on anticipated deployment plans for major theater wars in Southwest Asia or on the Korean peninsula, including the following:

      (1) Deficiencies or delays in deployment of strategic lift, logistics support and infrastructure, ammunition (including precision guided munitions), support forces, intelligence assets, follow-on forces used for planned counteroffensives, and similar forces.

      (2) Additional planned reserve component mobilization, including specific units to be ordered to active duty and required dates for activation of presidential call-up authority.

      (3) Specific plans and timelines for redeployment of United States forces from Bosnia and Herzegovina, the Balkans region, or supporting forces in the region, to both the first and second major theater war.

      (4) Preventative actions or deployments involving United States forces in Bosnia and Herzegovina and the Balkans region that would be taken in the event of a single theater war to deter the outbreak of a second theater war.

      (5) Specific plans and timelines to replace forces deployed to Bosnia and Herzegovina, the Balkans region, or the surrounding region to maintain United States military presence.

      (6) An assessment, undertaken in consultation with the Chairman of the Joint Chiefs of Staff and the commanders of the unified combatant commands, of the level of increased risk to successful conduct of the major theater wars and the maintenance of security and stability in Bosnia and Herzegovina and the Balkans region, by the requirement to redeploy forces from Bosnia and the Balkans in the event of a major theater war.

SEC. 1205. DEFINITIONS.

    As used in this subtitle:

      (1) DAYTON PEACE ACCORDS- The term ‘Dayton Peace Accords’ means the General Framework Agreement for Peace in Bosnia and Herzegovina, initialed by the parties in Dayton, Ohio, on November 21, 1995, and signed in Paris on December 14, 1995.

      (2) STABILIZATION FORCE- The term ‘Stabilization Force’ means the NATO-led force in Bosnia and Herzegovina and other countries in the region (referred to as ‘SFOR’), authorized under United Nations Security Council Resolution 1088 (December 12, 1996).

      (3) NATO- The term ‘NATO’ means the North Atlantic Treaty Organization.

Subtitle B--Matters Relating to Contingency Operations

SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND ONGOING OPERATIONS.

    (a) REPORT REQUIRED- Not later than January 31, 1999, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the involvement of the Armed Forces in major contingency operations and major ongoing operations since the end of the Persian Gulf War. The report shall include the following:

      (1) A discussion of the effects of the involvement of the Armed Forces in those operations on retention of personnel in the Armed Forces, shown in the aggregate and separately for officers and enlisted personnel.

      (2) The extent to which the use of combat support and combat service support personnel and equipment of the Armed Forces in those operations has resulted in shortages of Armed Forces personnel and equipment in other regions of the world.

      (3) The accounts from which funds have been drawn to pay for those operations and the specific programs for which those funds were available until diverted to pay for those operations.

      (4) For each such operation--

        (A) a statement of the vital interests of the United States that are involved in the operation or, if none, the interests of the United States that are involved in the operation and a characterization of those interests;

        (B) a statement of what clear and distinct objectives guide the activities of United States forces in the operation; and

        (C) a statement of what the President has identified on the basis of those objectives as the date, or the set of conditions, that defines the end of the operation.

    (b) FORM OF REPORT- The report shall be submitted in unclassified form, but may also be submitted in a classified form if necessary.

    (c) MAJOR OPERATION DEFINED- For the purposes of this section, a contingency operation or an ongoing operation is a major contingency operation or a major ongoing operation, respectively, if the operation involves the deployment of more than 500 members of the Armed Forces.

SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY OPERATION WITH REQUESTS FOR FUNDING FOR THE OPERATION.

    (a) FINDINGS- Congress makes the following findings:

      (1) On May 3, 1994, the President issued Presidential Decision Directive 25 declaring that American participation in United Nations and other peace operations would depend in part on whether the role of United States forces is tied to clear objectives and an endpoint for United States participation can be identified.

      (2) Between that date and mid-1998, the President and other executive branch officials have obligated or requested appropriations of approximately $9,400,000,000 for military-related operations throughout Bosnia and Herzegovina without providing to Congress, in conjunction with the budget submission for any fiscal year, a strategic plan for such operations under the criteria set forth in that Presidential Decision Directive.

      (3) Between November 27, 1995, and mid-1998 the President has established three deadlines, since elapsed, for the termination of United States military-related operations throughout Bosnia and Herzegovina.

      (4) On December 17, 1997, the President announced that United States ground combat forces would remain in Bosnia and Herzegovina for an unknown period of time.

      (5) Approximately 47,880 United States military personnel (excluding personnel serving in units assigned to the Republic of Korea) have participated in 14 international contingency operations between fiscal years 1991 and 1998.

      (6) The 1998 posture statements of the Navy and Air Force included declarations that the pace of military operations over fiscal year 1997 adversely affected the readiness of non-deployed forces, personnel retention rates, and spare parts inventories of the Navy and Air Force.

    (b) INFORMATION TO BE REPORTED WITH FUNDING REQUESTS- Section 113 of title 10, United States Code, is amended by adding after subsection (l), as added by section 915, the following new subsection:

    ‘(m) INFORMATION TO ACCOMPANY FUNDING REQUEST FOR CONTINGENCY OPERATION- Whenever the President submits to Congress a request for appropriations for costs associated with a contingency operation that involves, or likely will involve, the deployment of more than 500 members of the armed forces, the Secretary of Defense shall submit to Congress a report on the objectives of the operation. The report shall include a discussion of the following:

      ‘(1) What clear and distinct objectives guide the activities of United States forces in the operation.

      ‘(2) What the President has identified on the basis of those objectives as the date, or the set of conditions, that defines the endpoint of the operation.’.

Subtitle C--Matters Relating to NATO and Europe

SEC. 1221. LIMITATION ON UNITED STATES SHARE OF COSTS OF NATO EXPANSION.

    (a) LIMITATION- The United States share of defined NATO expansion costs may not exceed the lesser of--

      (1) the amount equal to 25 percent of those costs; or

      (2) $2,000,000,000.

    (b) DEFINED NATO EXPANSION COSTS- For purposes of subsection (a), the term ‘defined NATO expansion costs’ means the commonly funded costs of the North Atlantic Treaty Organization (NATO) during fiscal years 1999 through 2011 for enlargement of NATO due to the admission to NATO of Poland, Hungary, and the Czech Republic.

SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO ALLIANCE.

    (a) REPORT- The Secretary of Defense shall prepare a report, in both classified and unclassified form, on the planned future military capabilities of the North Atlantic Treaty Organization (NATO) with the anticipated accession of Poland, the Czech Republic, and Hungary to the NATO alliance. The report shall set forth the following:

      (1) An assessment of the tactical, operational, and strategic military requirements, including interoperability, reinforcement, and force modernization issues, as well as strategic and territorial issues, that are raised by the inclusion of Poland, the Czech Republic, and Hungary in the NATO alliance.

      (2) The minimum military requirements to be satisfied by those countries before accession to the NATO alliance in April 1999.

      (3) The improvements to common alliance military assets that are necessary as a result of expanding the NATO alliance to include those nations.

      (4) The improvements to national capabilities of current NATO members that would be necessitated by the inclusion of those nations in the alliance.

      (5) The necessary improvements to national capabilities of the military forces of those new member nations.

      (6) Any additional necessary improvements to common alliance military assets of the military forces of those new members for which funds are not planned to be included in the NATO budget.

      (7) The additional requirements, related to NATO expansion, that the United States would agree to assist each new member nation to meet on a bilateral basis.

    (b) MATTERS TO BE INCLUDED- The report shall include the following:

      (1) An assessment of the tactical and operational capabilities of the military forces of Poland, the Czech Republic, and Hungary.

      (2) An assessment of the ability of each such new member nation to meet the minimum military requirements upon accession to the NATO alliance in April 1999, and the ability of that nation to provide logistical, command and control, and other vital infrastructure required for alliance defense (as specified in Article V of the NATO Charter), including a description in general terms of alliance plans for reinforcing each new NATO member nation during a crisis or war and detailing means for deploying both United States and other NATO forces from current member states and from the continental United States or other United States bases worldwide and, in particular, describing plans for ground reinforcement of Hungary.

      (3) An assessment of the ability of the current and new alliance members to deploy and sustain combat forces in alliance defense missions conducted in the territory of any of the new member nations, as specified in Article V of the NATO Charter.

      (4) A description of projected defense programs through 2009 (shown on an annual basis and cumulatively) of each current and new alliance member nation--

        (A) including planned investments in capabilities pursuant to Article V to ensure that--

          (i) the nation’s military force structure, defense planning, command structures, and force goals promote NATO’s capacity to project power when the security of a NATO member is threatened; and

          (ii) NATO members possess national military capabilities to rapidly deploy forces over long distances, sustain operations for extended periods, and operate jointly with the United States in high intensity conflicts as well as potential alliance contingency operations;

        (B) showing both planned national efforts as well as planned alliance common efforts; and

        (C) describing any deficiencies in investments by current or new alliance member nations.

      (5) A detailed comparison and description of the differences in scope, methodology, and assessments of common alliance or national responsibilities, or any other factor related to alliance capabilities between (A) the report on alliance expansion costs prepared by the Department of Defense (in the report submitted to Congress in February 1998 entitled ‘Report to the Congress on the Military Requirements and Costs of NATO Enlargement’), and (B) the report on alliance expansion costs prepared by NATO collectively and referred to as the ‘NATO estimate’, issued at Brussels in November 1997.

      (6) Any other factor that, in the judgment of the Secretary of Defense, bears upon the strategic, operational, or tactical military capabilities of an expanded NATO alliance.

    (c) SUBMISSION OF REPORT- The report shall be submitted to Congress not later than March 15, 1999.

SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY AND DEFENSE IDENTITY.

    (a) REQUIREMENT FOR REPORTS- The Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives in accordance with this section reports on the development of the European Security and Defense Identity (ESDI) within the NATO Alliance that would enable the Western European Union (WEU), with the consent of the NATO Alliance, to assume the political control and strategic direction of NATO assets and capabilities made available by the Alliance.

    (b) REPORTS TO BE SUBMITTED- The reports required to be submitted under subsection (a) are as follows:

      (1) An initial report, submitted not later than December 15, 1998, that contains a discussion of the actions taken, and the plans for future actions, to build the European Security and Defense Identity, together with the matters required under subsection (c).

      (2) A semiannual report on the progress made toward establishing the European Security and Defense Identity, submitted not later than June 15 and December 15 of each year after 1998.

    (c) CONTENT OF REPORTS- The Secretary shall include in each report under this section the following:

      (1) A discussion of the arrangements between NATO and the Western European Union for the release, transfer, monitoring, return, and recall of NATO assets and capabilities.

      (2) A discussion of the development of such planning and other capabilities by the Western European Union that are necessary to provide political control and strategic direction of NATO assets and capabilities.

      (3) A discussion of the development of terms of reference for the Deputy Supreme Allied Commander, Europe, with respect to the European Security and Defense Identity.

      (4) A discussion of the arrangements for the assignment or appointment of NATO officers to serve in two positions concurrently (commonly referred to as ‘dual-hatting’).

      (5) A discussion of the development of the Combined Joint Task Force (CJTF) concept, including lessons-learned from the NATO-led Stabilization Force in Bosnia.

      (6) Identification within the NATO Alliance of the types of separable but not separate capabilities, assets, and support assets for Western European Union-led operations.

      (7) Identification of separable but not separate headquarters, headquarters elements, and command positions for command and conduct of Western European Union-led operations.

      (8) The conduct by NATO, at the request of and in coordination with the Western European Union, of military planning and exercises for illustrative missions.

      (9) A discussion of the arrangements between NATO and the Western European Union for the sharing of information, including intelligence.

      (10) Such other information as the Secretary considers useful for a complete understanding of the establishment of the European Security and Defense Identity within the NATO Alliance.

    (d) TERMINATION OF REPORTING REQUIREMENT- The requirement to submit reports under subsection (b)(2) terminates upon the submission by the Secretary under that subsection of a report in which the Secretary states that the European Security and Defense Identity has been fully established.

Subtitle D--Other Matters

SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES FOR CERTAIN UNITED NATIONS PURPOSES.

    (a) LIMITATION ON PARTICIPATION IN UNITED NATIONS RAPIDLY DEPLOYABLE MISSION HEADQUARTERS- If members of the Armed Forces are assigned during fiscal year 1999 to the United Nations Rapidly Deployable Mission Headquarters, the number of members so assigned may not exceed eight at any time during that year.

    (b) PROHIBITION- No funds available to the Department of Defense may be used--

      (1) for a monetary contribution to the United Nations for the establishment of a standing international force under the United Nations; or

      (2) to assign or detail any member of the Armed Forces to duty with a United Nations Stand By Force.

SEC. 1232. PROHIBITION ON RESTRICTION OF ARMED FORCES UNDER KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE.

    (a) IN GENERAL- Notwithstanding any other provision of law, no provision of the Kyoto Protocol to the United Nations Framework Convention on Climate Change, or any regulation issued pursuant to such protocol, shall restrict the training or operations of the United States Armed Forces or limit the military equipment procured by the United States Armed Forces.

    (b) WAIVER- A provision of law may not be construed as modifying or superseding the provisions of subsection (a) unless that provision of law--

      (1) specifically refers to this section; and

      (2) specifically states that such provision of law modifies or supersedes the provisions of this section.

    (c) MATTERS NOT AFFECTED- Nothing in this section shall be construed to preclude the Department of Defense from implementing any measure to achieve efficiencies or for any other reason independent of the Kyoto Protocol.

SEC. 1233. DEFENSE BURDENSHARING.

    (a) REVISED GOALS FOR EFFORTS TO INCREASE ALLIED BURDENSHARING- Effective October 1, 1998, subsection (a) of section 1221 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 1928 note) is amended--

      (1) in paragraph (2), by striking out ‘September 30, 1998’ and inserting in lieu thereof ‘September 30, 1999’;

      (2) in paragraph (3)--

        (A) by striking out ‘economic’ and all that follows through ‘rights’ and inserting in lieu thereof ‘governmental accountability and transparency, economic stabilization and development, defense economic conversion, respect for the rule of law and internationally recognized human rights, and humanitarian relief efforts)’; and

        (B) by striking out ‘at least to a level commensurate to that of the United States by September 30, 1998’ and inserting in lieu thereof ‘to provide such foreign assistance at an annual rate that is not less than one percent of its gross domestic product, by September 30, 1999’; and

      (3) in paragraph (4)--

        (A) by striking out ‘amount of’;

        (B) by striking out ‘, or would be prepared to contribute,’ and inserting in lieu thereof ‘or has pledged to contribute’; and

        (C) by inserting before the period at the end the following: ‘by 10 percent by September 30, 1999’.

    (b) REVISED REQUIREMENT FOR REPORT ON PROGRESS IN INCREASING ALLIED BURDENSHARING- Subsection (c) of such section is amended--

      (1) by striking out ‘March 1, 1998’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘March 1, 1999’; and

      (2) in paragraph (3), by striking out ‘March 1, 1996’ and all that follows through the semicolon and inserting in lieu thereof ‘October 1, 1996, and ending on September 30, 1997, and during the period beginning on October 1, 1997, and ending on September 30, 1998, or, in the case of any nation for which the data for such periods is inadequate, the difference between the amounts for the latest periods for which adequate data is available;’.

    (c) EXTENSION OF DEADLINE FOR REPORT REGARDING NATIONAL SECURITY BASES FOR FORWARD DEPLOYMENT AND BURDENSHARING RELATIONSHIPS- Subsection (d)(2) of such section is amended by striking out ‘March 1, 1998’ and inserting in lieu thereof ‘March 1, 1999’.

SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA HELICOPTERS TO FOREIGN COUNTRIES.

    (a) IN GENERAL- Chapter 153 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for transfer to foreign countries

    ‘(a) REQUIREMENTS- (1) Before an excess UH-1 Huey helicopter or AH-1 Cobra helicopter is transferred on a grant or sales basis to a foreign country for the purpose of flight operations by that country, the Secretary of Defense shall make all reasonable efforts to ensure that the helicopter receives, to the extent necessary, maintenance and repair equivalent to the depot-level maintenance and repair (as defined in section 2460 of this title) that the helicopter would need were the helicopter to remain in operational use with the armed forces. Any such maintenance and repair work shall be performed at no cost to the Department of Defense.

    ‘(2) The Secretary shall make all reasonable efforts to ensure that maintenance and repair work described in paragraph (1) is performed in the United States.

    ‘(b) EXCEPTION- Subsection (a) does not apply with respect to salvage helicopters provided to the foreign country solely as a source for spare parts.’.

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

      ‘2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for transfer to foreign countries.’.

SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) TRANSFERS BY GRANT- The Secretary of the Navy is authorized to transfer vessels to foreign countries on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:

      (1) To the Government of Argentina, the NEWPORT class tank landing ship NEWPORT (LST 1179).

      (2) To the Government of Greece--

        (A) the KNOX class frigate HEPBURN (FF 1055); and

        (B) the ADAMS class guided missile destroyers STRAUSS (DDG 16), SEMMS (DDG 18), and WADDELL (DDG 24).

      (3) To the Government of Portugal, the STALWART class ocean surveillance ship ASSURANCE (T-AGOS 5).

      (4) To the Government of Turkey, the KNOX class frigates PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).

    (b) TRANSFERS BY SALE- The Secretary of the Navy is authorized to transfer vessels to foreign countries on a sales basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761) as follows:

      (1) To the Government of Brazil, the NEWPORT class tank landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).

      (2) To the Government of Chile--

        (A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 1189); and

        (B) the auxiliary repair dry dock WATERFORD (ARD 5).

      (3) To the Government of Greece--

        (A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 2); and

        (B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE (FF 1075).

      (4) To the Government of Mexico--

        (A) the auxiliary repair dock SAN ONOFRE (ARD 30); and

        (B) the KNOX class frigate PHARRIS (FF 1094).

      (5) To the Government of the Philippines, the STALWART class ocean surveillance ship TRIUMPH (T-AGOS 4).

      (6) To the Government of Spain, the NEWPORT class tank landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY (LST 1197).

      (7) To the Taipai Economic and Cultural Representative Office in the United States (the Taiwan instrumentality that is designated pursuant to section 10(a) of the Taiwan Relations Act)--

        (A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), and BARBEY (FF 1088);

        (B) the NEWPORT class tank landing ships MANITOWOC (LST 1180) and SUMTER (LST 1181);

        (C) the floating dry dock COMPETENT (AFDM 6); and

        (D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 38).

      (8) To the Government of Turkey--

        (A) the OLIVER HAZARD PERRY class guided missile frigates MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 10); and

        (B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY (FF 1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).

      (9) To the Government of Venezuela, the medium auxiliary floating dry dock bearing hull number AFDM 2.

    (c) TRANSFERS ON A COMBINED LEASE-SALE BASIS- The Secretary of the Navy is authorized to transfer vessels to foreign countries on a combined lease-sale basis under sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection (d) as follows:

      (1) To the Government of Brazil, the CIMARRON class oiler MERRIMACK (AO 179).

      (2) To the Government of Greece, the KIDD class guided missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).

    (d) CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS- A transfer of a vessel on a combined lease-sale basis authorized by subsection (c) shall be made in accordance with the following requirements:

      (1) The Secretary may initially transfer the vessel by lease, with lease payments suspended for the term of the lease, if the country entering into the lease for the vessel simultaneously enters into a foreign military sales agreement for the transfer of title to the vessel.

      (2) The Secretary may not deliver to the purchasing country title to the vessel until the purchase price of the vessel under such a foreign military sales agreement is paid in full.

      (3) Upon payment of the purchase price in full under such a sales agreement and delivery of title to the recipient country, the Secretary shall terminate the lease.

      (4) If the purchasing country fails to make full payment of the purchase price in accordance with the sales agreement by the date required under the sales agreement--

        (A) the sales agreement shall be immediately terminated;

        (B) the suspension of lease payments under the lease shall be vacated; and

        (C) the United States shall be entitled to retain all funds received on or before the date of the termination under the sales agreement, up to the amount of the lease payments due and payable under the lease and all other costs required by the lease to be paid to that date.

      (5) If a sales agreement is terminated pursuant to paragraph (4), the United States shall not be required to pay any interest to the recipient country on any amount paid to the United States by the recipient country under the sales agreement and not retained by the United States under the lease.

    (e) REQUIREMENT FOR PROVISION IN ADVANCE IN AN APPROPRIATIONS ACT- Authority to transfer vessels on a sale basis under subsection (b) or a combined lease-sale basis under subsection (c) is effective only to the extent that authority to effectuate such transfers, together with appropriations to cover the associated cost (as defined in section 502 of the Congressional Budget of 1974 (2 U.S.C. 661a)), are provided in advance in an appropriations Act.

    (f) AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN COSTS OF TRANSFERS- There is established in the Treasury of the United States a special account to be known as the Defense Vessels Transfer Program Account. There is hereby authorized to be appropriated into that account such sums as may be necessary for the costs (as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers authorized by subsection (c). Funds in that account are available only for the purpose of covering those costs.

    (g) NOTIFICATION OF CONGRESS- Not later than 30 days after the date of the enactment of this Act, the Secretary of the Navy shall submit to Congress, for each naval vessel that is to be transferred under this section before January 1, 1999, the notifications required under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).

    (h) GRANTS NOT COUNTED IN ANNUAL TOTAL OF TRANSFERRED EXCESS DEFENSE ARTICLES- The value of a vessel transferred to another country on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not be counted for the purposes of subsection (g) of that section in the aggregate value of excess defense articles transferred to countries under that section in any fiscal year.

    (i) COSTS OF TRANSFERS- Any expense incurred by the United States in connection with a transfer authorized by this section shall be charged to the recipient (notwithstanding section 516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a transfer authorized to be made on a grant basis under subsection (a)).

    (j) REPAIR AND REFURBISHMENT IN UNITED STATES SHIPYARDS- To the maximum extent practicable, the Secretary of the Navy shall require, as a condition of the transfer of a vessel under this section, that the country to which the vessel is transferred have such repair or refurbishment of the vessel as is needed, before the vessel joins the naval forces of that country, performed at a shipyard located in the United States, including a United States Navy shipyard.

    (k) EXPIRATION OF AUTHORITY- The authority to transfer a vessel under this section shall expire at the end of the 2-year period beginning on the date of the enactment of this Act.

SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

    Section 580 of the Foreign Operations Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 751), is repealed.

SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT TO COMMUNIST CHINESE MILITARY COMPANIES.

    (a) PRESIDENTIAL AUTHORITY-

      (1) IN GENERAL- The President may exercise IEEPA authorities (other than authorities relating to importation) without regard to section 202 of the International Emergency Economic Powers Act (50 U.S.C. 1701) in the case of any commercial activity in the United States by a person that is on the list published under subsection (b).

      (2) PENALTIES- The penalties set forth in section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) apply to violations of any license, order, or regulation issued under paragraph (1).

      (3) IEEPA AUTHORITIES- For purposes of paragraph (1), the term ‘IEEPA authorities’ means the authorities set forth in section 203(a) of the International Emergency Economic Powers Act (50 U.S.C. 1702(a)).

    (b) DETERMINATION AND PUBLICATION OF COMMUNIST CHINESE MILITARY COMPANIES OPERATING IN UNITED STATES-

      (1) INITIAL DETERMINATION AND PUBLICATION- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall make a determination of those persons operating directly or indirectly in the United States or any of its territories and possessions that are Communist Chinese military companies and shall publish a list of those persons in the Federal Register.

      (2) REVISIONS TO LIST- The Secretary of Defense shall make additions or deletions to the list published under paragraph (1) on an ongoing basis based on the latest information available.

      (3) CONSULTATION- The Secretary of Defense shall consult with the following officers in carrying out paragraphs (1) and (2):

        (A) The Attorney General.

        (B) The Director of Central Intelligence.

        (C) The Director of the Federal Bureau of Investigation.

      (4) COMMUNIST CHINESE MILITARY COMPANY- For purposes of making the determination required by paragraph (1) and of carrying out paragraph (2), the term ‘Communist Chinese military company’ means--

        (A) any person identified in the Defense Intelligence Agency publication numbered VP-1920-271-90, dated September 1990, or PC-1921-57-95, dated October 1995, and any update of those publications for the purposes of this section; and

        (B) any other person that--

          (i) is owned or controlled by the People’s Liberation Army; and

          (ii) is engaged in providing commercial services, manufacturing, producing, or exporting.

    (c) PEOPLE’S LIBERATION ARMY- For purposes of this section, the term ‘People’s Liberation Army’ means the land, naval, and air military services, the police, and the intelligence services of the Communist Government of the People’s Republic of China, and any member of any such service or of such police.

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

      Sec.1301.Specification of Cooperative Threat Reduction programs and funds.

      Sec.1302.Funding allocations.

      Sec.1303.Prohibition on use of funds for specified purposes.

      Sec.1304.Limitation on use of funds for chemical weapons destruction activities in Russia.

      Sec.1305.Limitation on use of funds for biological weapons proliferation prevention activities in Russia.

      Sec.1306.Cooperative counter-proliferation program.

      Sec.1307.Requirement to submit summary of amounts requested by project category.

      Sec.1308.Report on biological weapons programs in Russia.

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND FUNDS.

    (a) SPECIFICATION OF CTR PROGRAMS- (1) For purposes of section 301 and other provisions of this Act, Cooperative Threat Reduction programs are the programs specified in section 1501(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 note) (as amended by paragraph (2)).

    (2) Section 1501(b)(3) of such Act is amended by inserting ‘materials,’ after ‘components,’.

    (b) FISCAL YEAR 1999 COOPERATIVE THREAT REDUCTION FUNDS DEFINED- As used in this title, the term ‘fiscal year 1999 Cooperative Threat Reduction funds’ means the funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs.

    (c) AVAILABILITY OF FUNDS- Funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs shall be available for obligation for three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) FUNDING FOR SPECIFIC PURPOSES- Of the amounts authorized to be appropriated to the Department of Defense for fiscal year 1999 in section 301(23), $440,400,000 shall be available to carry out Cooperative Threat Reduction programs, of which not more than the following amounts may be obligated for the purposes specified:

      (1) For strategic offensive arms elimination in Russia, $142,400,000.

      (2) For strategic nuclear arms elimination in Ukraine, $47,500,000.

      (3) For activities to support warhead dismantlement processing in Russia, $9,400,000.

      (4) For activities associated with chemical weapons destruction in Russia, $88,400,000.

      (5) For weapons transportation security in Russia, $10,300,000.

      (6) For planning, design, and construction of a storage facility for Russian fissile material, $60,900,000.

      (7) For weapons storage security in Russia, $41,700,000.

      (8) For development of a cooperative program with the Government of Russia to eliminate the production of weapons grade plutonium at Russian reactors, $29,800,000.

      (9) For biological weapons proliferation prevention activities in Russia, $2,000,000.

      (10) For activities designated as Other Assessments/Administrative Support, $8,000,000.

    (b) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS- (1) If the Secretary of Defense determines that it is necessary to do so in the national interest, the Secretary may, subject to paragraphs (2) and (3), obligate amounts for the purposes stated in any of the paragraphs of subsection (a) in excess of the amount specified for those purposes in that paragraph. However, the total amount obligated for the purposes stated in the paragraphs in subsection (a) may not by reason of the use of the authority provided in the preceding sentence exceed the sum of the amounts specified in those paragraphs.

    (2) An obligation for the purposes stated in any of the paragraphs in subsection (a) in excess of the amount specified in that paragraph may be made using the authority provided in paragraph (1) only after--

      (A) the Secretary submits to Congress notification of the intent to do so together with a complete discussion of the justification for doing so; and

      (B) 15 days have elapsed following the date of the notification.

    (3) The Secretary may not, under the authority provided in paragraph (1), obligate amounts appropriated for the purposes stated in any of paragraphs (3) through (10) of subsection (a) in excess of 115 percent of the amount stated in those paragraphs.

SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) IN GENERAL- No fiscal year 1999 Cooperative Threat Reduction funds, and no funds appropriated for Cooperative Threat Reduction programs for any prior fiscal year and remaining available for obligation, may be obligated or expended for any of the following purposes:

      (1) Conducting with Russia any peacekeeping exercise or other peacekeeping-related activity.

      (2) Provision of housing.

      (3) Provision of assistance to promote environmental restoration.

      (4) Provision of assistance to promote job retraining.

    (b) LIMITATION WITH RESPECT TO DEFENSE CONVERSION ASSISTANCE- None of the funds appropriated pursuant to this Act may be obligated or expended for the provision of assistance to Russia or any other state of the former Soviet Union to promote defense conversion.

SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION ACTIVITIES IN RUSSIA.

    (a) LIMITATION- Subject to the limitation in section 1405(b) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1961), no funds authorized to be appropriated for Cooperative Threat Reduction programs under this Act or any other Act may be obligated or expended for chemical weapons destruction activities in Russia (including activities for the planning, design, or construction of a chemical weapons destruction facility or for the dismantlement of an existing chemical weapons production facility) until the President submits to Congress a written certification described in subsection (b).

    (b) PRESIDENTIAL CERTIFICATION- A certification under this subsection is either of the following certifications by the President:

      (1) A certification that--

        (A) Russia is making reasonable progress toward the implementation of the Bilateral Destruction Agreement;

        (B) the United States and Russia have made substantial progress toward the resolution, to the satisfaction of the United States, of outstanding compliance issues under the Wyoming Memorandum of Understanding and the Bilateral Destruction Agreement; and

        (C) Russia has fully and accurately declared all information regarding its unitary and binary chemical weapons, chemical weapons facilities, and other facilities associated with chemical weapons.

      (2) A certification that the national security interests of the United States could be undermined by a policy of the United States not to carry out chemical weapons destruction activities under Cooperative Threat Reduction programs for which funds are authorized to be appropriated under this Act or any other Act for fiscal year 1999.

    (c) DEFINITIONS- In this section:

      (1) The term ‘Bilateral Destruction Agreement’ means the Agreement Between the United States of America and the Union of Soviet Socialist Republics on Destruction and Non-production of Chemical Weapons and on Measures to Facilitate the Multilateral Convention on Banning Chemical Weapons signed on June 1, 1990.

      (2) The term ‘Wyoming Memorandum of Understanding’ means the Memorandum of Understanding Between the Government of the United States of America and the Government of the Union of Soviet Socialist Republics Regarding a Bilateral Verification Experiment and Data Exchange Related to Prohibition on Chemical Weapons, signed at Jackson Hole, Wyoming, on September 23, 1989.

SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

    No fiscal year 1999 Cooperative Threat Reduction funds may be obligated or expended for biological weapons proliferation prevention activities in Russia until 15 days after the date on which the Secretary submits to the congressional defense committees a report on--

      (1) whether Cooperative Threat Reduction funds provided for cooperative research activities at biological research institutes in Russia have been used--

        (A) to support activities to develop new strains of anthrax; or

        (B) for any purpose inconsistent with the objectives of providing such funds; and

      (2) the new strains of anthrax alleged to have been developed at a biological research institute in Russia and any efforts by the United States to examine such strains.

SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

    (a) IN GENERAL- Of the amount authorized to be appropriated in section 1302 (other than the amounts authorized to be appropriated in subsections (a)(1) and (a)(2) of that section) and subject to the limitations in that section and subsection (b), the Secretary of Defense may provide a country of the former Soviet Union with emergency assistance for removing or obtaining from that country--

      (1) weapons of mass destruction; or

      (2) materials, equipment, or technology related to the development or delivery of weapons of mass destruction.

    (b) CERTIFICATION REQUIRED- (1) The Secretary may not provide assistance under subsection (a) until 15 days after the date that the Secretary submits to the congressional defense committees a certification in writing that the weapons, materials, equipment, or technology described in that subsection meet each of the following requirements:

      (A) The weapons, materials, equipment, or technology are at risk of being sold or otherwise transferred to a restricted foreign state or entity.

      (B) The transfer of the weapons, materials, equipment, or technology would pose a significant near-term threat to the national security interests of the United States or would significantly advance a foreign country’s weapon program that threatens the national security interests of the United States.

      (C) Other options for securing or otherwise preventing the transfer of the weapons, materials, equipment, or technology have been considered and rejected as ineffective or inadequate.

    (2) The 15-day notice requirement in paragraph (1) may be waived if the Secretary determines that compliance with the requirement would compromise the national security interests of the United States. In such case, the Secretary shall promptly notify the congressional defense committees of the circumstances regarding such determination in advance of providing assistance under subsection (a) and shall submit the certification required not later than 30 days after providing such assistance.

    (c) CONTENT OF CERTIFICATIONS- Each certification required under subsection (b) shall contain information on the following with respect to the assistance being provided:

      (1) The specific assistance provided and the purposes for which the assistance is being provided.

      (2) The sources of funds for the assistance.

      (3) Whether any assistance is being provided by any other Federal department or agency.

      (4) The options considered and rejected for preventing the transfer of the weapons, materials, equipment, or technology, as described in subsection (b)(1)(C).

      (5) Whether funding was requested by the Secretary from other Federal departments or agencies.

      (6) Any additional information that the Secretary determines is relevant to the assistance being provided.

    (d) ADDITIONAL SOURCES OF FUNDING- The Secretary may request assistance and accept funds from other Federal departments or agencies in carrying out this section.

    (e) DEFINITIONS- In this section:

      (1) The term ‘restricted foreign state or entity’, with respect to weapons, materials, equipment, or technology covered by a certification or notification of the Secretary of Defense under subsection (b), means--

        (A) any foreign country the government of which has repeatedly provided support for acts of international terrorism, as determined by the Secretary of State under section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371); or

        (B) any foreign state or entity that the Secretary of Defense determines would constitute a military threat to the United States, its allies, or interests, if that foreign state or entity were to possess the weapons, materials, equipment, or technology.

      (2) The term ‘weapons of mass destruction’ has the meaning given that term in section 1403(1) of the Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 50 U.S.C. 2302(1)).

SEC. 1307. REQUIREMENT TO SUBMIT SUMMARY OF AMOUNTS REQUESTED BY PROJECT CATEGORY.

    (a) SUMMARY REQUIRED- The Secretary of Defense shall submit to Congress as part of the Secretary’s annual budget request to Congress--

      (1) a descriptive summary, with respect to the appropriations requested for Cooperative Threat Reduction programs for the fiscal year after the fiscal year in which the summary is submitted, of the amounts requested for each project category under each Cooperative Threat Reduction program element; and

      (2) a descriptive summary, with respect to appropriations for Cooperative Threat Reduction programs for the fiscal year in which the list is submitted and the previous fiscal year, of the amounts obligated or expended, or planned to be obligated or expended, for each project category under each Cooperative Threat Reduction program element.

    (b) DESCRIPTION OF PURPOSE AND INTENT- The descriptive summary required under subsection (a) shall include a narrative description of each program and project category under each Cooperative Threat Reduction program element that explains the purpose and intent of the funds requested.

SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

    (a) REPORT- Not later than March 1, 1999, the Secretary of Defense shall submit to the congressional defense committees a report, in classified and unclassified forms, containing--

      (1) an assessment of the extent of compliance by Russia with international agreements relating to the control of biological weapons; and

      (2) a detailed evaluation of the potential political and military costs and benefits of collaborative biological pathogen research efforts by the United States and Russia.

    (b) CONTENT OF REPORT- The report required under subsection (a) shall include the following:

      (1) An evaluation of the extent of the control and oversight by the Government of Russia over the military and civilian-military biological warfare programs formerly controlled or overseen by states of the former Soviet Union.

      (2) The extent and scope of continued biological warfare research, development, testing, and production in Russia, including the sites where such activity is occurring and the types of activity being conducted.

      (3) An assessment of compliance by Russia with the terms of the Biological Weapons Convention.

      (4) An identification and assessment of the measures taken by Russia to comply with the obligations assumed under the Joint Statement on Biological Weapons, agreed to by the United States, the United Kingdom, and Russia on September 14, 1992.

      (5) A description of the extent to which Russia has permitted individuals from the United States or other countries to visit military and nonmilitary biological research, development, testing, and production sites in order to resolve ambiguities regarding activities at such sites.

      (6) A description of the information provided by Russia about its biological weapons dismantlement efforts to date.

      (7) An assessment of the accuracy and comprehensiveness of declarations by Russia regarding its biological weapons activities.

      (8) An identification of collaborative biological research projects carried out by the United States and Russia for which Cooperative Threat Reduction funds have been used.

      (9) An evaluation of the political and military utility of prior, existing, and prospective cooperative biological pathogen research programs carried out between the United States and Russia, and an assessment of the impact of such programs on increasing Russian military transparency with respect to biological weapons activities.

      (10) An assessment of the political and military utility of the long-term collaborative program advocated by the National Academy of Sciences in its October 27, 1997 report, ‘Controlling Dangerous Pathogens: A Blueprint for U.S.-Russian Cooperation’.

SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER SOVIET WEAPONS OF MASS DESTRUCTION PROGRAMS.

    Not later than January 31, 1999, the Secretary of Defense, in consultation with the Secretary of State, the Secretary of Energy, and any other appropriate officials, shall submit to the congressional defense committees a report on the number of individuals in the former Soviet Union who have significant expertise in the research, development, production, testing, and operational employment of ballistic missiles and weapons of mass destruction. The report shall contain the following:

      (1) A listing of the specific expertise of the individuals, by category and discipline.

      (2) An assessment of which categories of expertise would pose the greatest risks to the security of the United States if that expertise were transferred to potentially hostile states.

      (3) An estimate, by category, of the number of the individuals in paragraph (1) who are fully or partly employed at the time the report is submitted by the military-industrial complex of the former Soviet Union, the number of such individuals who are fully employed at the time the report is submitted by commercial ventures outside the military-industrial complex of the former Soviet Union, and the number of such individuals who are unemployed and underemployed at the time the report is submitted.

      (4) An identification of the nature, scope, and cost of activities conducted by the United States and other countries to assist in the employment in nonproliferation and nonmilitary-related endeavors and enterprises of individuals involved in the weapons complex of the former Soviet Union, and which categories of individuals are being targeted in these efforts.

      (5) An assessment of whether the activities identified under paragraph (4) should be reduced, maintained, or expanded.

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

      Sec.1401.Short title.

      Sec.1402.Domestic preparedness for response to threats of terrorist use of weapons of mass destruction.

      Sec.1403.Report on domestic emergency preparedness.

      Sec.1404.Threat and risk assessments.

      Sec.1405.Advisory panel to assess domestic response capabilities for terrorism involving weapons of mass destruction.

SEC. 1401. SHORT TITLE.

    This title may be cited as the ‘Defense Against Weapons of Mass Destruction Act of 1998’.

SEC. 1402. DOMESTIC PREPAREDNESS FOR RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS DESTRUCTION.

    (a) ENHANCED RESPONSE CAPABILITY- In light of the continuing potential for terrorist use of weapons of mass destruction against the United States and the need to develop a more fully coordinated response to that threat on the part of Federal, State, and local agencies, the President shall act to increase the effectiveness at the Federal, State, and local level of the domestic emergency preparedness program for response to terrorist incidents involving weapons of mass destruction by utilizing the President’s existing authorities to develop an integrated program that builds upon the program established under the Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2714; 50 U.S.C. 2301 et seq.).

    (b) REPORT- Not later than January 31, 1999, the President shall submit to Congress a report containing information on the actions taken at the Federal, State, and local level to develop an integrated program to prevent and respond to terrorist incidents involving weapons of mass destruction.

SEC. 1403. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.

    Section 1051 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1889; 31 U.S.C. 1113 note) is amended by adding at the end the following new subsection:

    ‘(c) ANNEX ON DOMESTIC EMERGENCY PREPAREDNESS PROGRAM- As part of the annual report submitted to Congress under subsection (b), the President shall include an annex which provides the following information on the domestic emergency preparedness program for response to terrorist incidents involving weapons of mass destruction (as established under section 1402 of the Defense Against Weapons of Mass Destruction Act of 1998):

      ‘(1) Information on program responsibilities for each participating Federal department, agency, and bureau.

      ‘(2) A summary of program activities performed during the preceding fiscal year for each participating Federal department, agency, and bureau.

      ‘(3) A summary of program obligations and expenditures during the preceding fiscal year for each participating Federal department, agency, and bureau.

      ‘(4) A summary of the program plan and budget for the current fiscal year for each participating Federal department, agency, and bureau.

      ‘(5) The program budget request for the following fiscal year for each participating Federal department, agency, and bureau.

      ‘(6) Recommendations for improving Federal, State, and local domestic emergency preparedness to respond to incidents involving weapons of mass destruction that have been made by the advisory panel to assess the capabilities of domestic response to terrorism involving weapons of mass destruction (as established under section 1405 of the Defense Against Weapons of Mass Destruction Act of 1998), and actions taken as a result of such recommendations.

      ‘(7) Additional program measures and legislative authority for which congressional action may be required.’.

SEC. 1404. THREAT AND RISK ASSESSMENTS.

    (a) REQUIREMENT TO DEVELOP METHODOLOGIES- The Attorney General, in consultation with the Director of the Federal Bureau of Investigation and representatives of appropriate Federal, State, and local agencies, shall develop and test methodologies for assessing the threat and risk of terrorist employment of weapons of mass destruction against cities and other local areas. The results of the tests may be used to determine the training and equipment requirements under the program developed under section 1402. The methodologies required by this subsection shall be developed using cities or local areas selected by the Attorney General, acting in consultation with the Director of the Federal Bureau of Investigation and appropriate representatives of Federal, State, and local agencies.

    (b) REQUIRED COMPLETION DATE- The requirements in subsection (a) shall be completed not later than 1 year after the date of the enactment of this Act.

SEC. 1405. ADVISORY PANEL TO ASSESS DOMESTIC RESPONSE CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) REQUIREMENT FOR PANEL- The Secretary of Defense, in consultation with the Attorney General, the Secretary of Energy, the Secretary of Health and Human Services, and the Director of the Federal Emergency Management Agency, shall enter into a contract with a federally funded research and development center to establish a panel to assess the capabilities for domestic response to terrorism involving weapons of mass destruction.

    (b) COMPOSITION OF PANEL; SELECTION- (1) The panel shall be composed of members who shall be private citizens of the United States with knowledge and expertise in emergency response matters.

    (2) Members of the panel shall be selected by the federally funded research and development center in accordance with the terms of the contract established pursuant to subsection (a).

    (c) PROCEDURES FOR PANEL- The federally funded research and development center shall be responsible for establishing appropriate procedures for the panel, including procedures for selection of a panel chairman.

    (d) DUTIES OF PANEL- The panel shall--

      (1) assess Federal agency efforts to enhance domestic preparedness for incidents involving weapons of mass destruction;

      (2) assess the progress of Federal training programs for local emergency responses to incidents involving weapons of mass destruction;

      (3) assess deficiencies in programs for response to incidents involving weapons of mass destruction, including a review of unfunded communications, equipment, and planning requirements, and the needs of maritime regions;

      (4) recommend strategies for ensuring effective coordination with respect to Federal agency weapons of mass destruction response efforts, and for ensuring fully effective local response capabilities for weapons of mass destruction incidents; and

      (5) assess the appropriate roles of State and local government in funding effective local response capabilities.

    (e) DEADLINE TO ENTER INTO CONTRACT- The Secretary of Defense shall enter into the contract required under subsection (a) not later than 60 days after the date of the enactment of this Act.

    (f) DEADLINE FOR SELECTION OF PANEL MEMBERS- Selection of panel members shall be made not later than 30 days after the date on which the Secretary enters into the contract required by subsection (a).

    (g) INITIAL MEETING OF THE PANEL- The panel shall conduct its first meeting not later than 30 days after the date that all the selections to the panel have been made.

    (h) REPORTS- (1) Not later than 6 months after the date of the first meeting of the panel, the panel shall submit to the President and to Congress an initial report setting forth its findings, conclusions, and recommendations for improving Federal, State, and local domestic emergency preparedness to respond to incidents involving weapons of mass destruction.

    (2) Not later than December 15 of each year, beginning in 1999 and ending in 2001, the panel shall submit to the President and to the Congress a report setting forth its findings, conclusions, and recommendations for improving Federal, State, and local domestic emergency preparedness to respond to incidents involving weapons of mass destruction.

    (i) COOPERATION OF OTHER AGENCIES- (1) The panel may secure directly from the Department of Defense, the Department of Energy, the Department of Health and Human Services, the Department of Justice, and the Federal Emergency Management Agency, or any other Federal department or agency information that the panel considers necessary for the panel to carry out its duties.

    (2) The Attorney General, the Secretary of Defense, the Secretary of Energy, the Secretary of Health and Human Services, the Director of the Federal Emergency Management Agency, and any other official of the United States shall provide the panel with full and timely cooperation in carrying out its duties under this section.

    (j) FUNDING- The Secretary of Defense shall provide the funds necessary for the panel to carry out its duties from the funds available to the Department of Defense for weapons of mass destruction preparedness initiatives.

    (k) COMPENSATION OF PANEL MEMBERS- (1) Members of the panel shall serve without pay by reason of their work on the panel.

    (2) Members of the panel shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter 57 of title 5, United States Code, while away from their homes or regular place of business in performance of services for the panel.

    (l) TERMINATION OF THE PANEL- The panel shall terminate three years after the date of the appointment of the member selected as chairman of the panel.

    (m) DEFINITION- In this section, the term ‘weapon of mass destruction’ has the meaning given that term in section 1403(1) of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

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

Subtitle A--Arms Control Matters

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

      Sec.1502.Transmission of executive branch reports providing Congress with classified summaries of arms control developments.

      Sec.1503.Report on adequacy of emergency communications capabilities between United States and Russia.

      Sec.1504.Russian nonstrategic nuclear weapons.

Subtitle B--Satellite Export Controls

      Sec.1511.Sense of Congress.

      Sec.1512.Certification of exports of missile equipment or technology to China.

      Sec.1513.Satellite controls under the United States Munitions List.

      Sec.1514.National security controls on satellite export licensing.

      Sec.1515.Report on export of satellites for launch by People’s Republic of China.

      Sec.1516.Related items defined.

Subtitle C--Other Export Control Matters

      Sec.1521.Authority for export control activities of the Department of Defense.

      Sec.1522.Release of export information by Department of Commerce to other agencies for purpose of national security assessment.

      Sec.1523.Nuclear export reporting requirement.

      Sec.1524.Execution of objection authority within the Department of Defense.

Subtitle D--Counterproliferation Matters

      Sec.1531.One-year extension of counterproliferation authorities for support of United Nations Special Commission on Iraq.

      Sec.1532.Sense of Congress on nuclear tests in South Asia.

      Sec.1533.Report on requirements for response to increased missile threat in Asia-Pacific region.

Subtitle A--Arms Control Matters

SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is amended--

      (1) in subsections (a), (b), and (c)(2), by striking out ‘during fiscal year 1998’ and inserting in lieu thereof ‘during the strategic delivery systems retirement limitation period’;

      (2) in subsection (c)(1), by striking out ‘during fiscal year 1998’;

      (3) in subsection (d)(1)--

        (A) by striking out ‘for fiscal year 1998’; and

        (B) by striking out ‘during fiscal year 1998’; and

      (4) by adding at the end the following new subsection:

    ‘(g) STRATEGIC DELIVERY SYSTEMS RETIREMENT LIMITATION PERIOD- For purposes of this section, the term ‘strategic delivery systems retirement limitation period’ means the period of fiscal years 1998 and 1999.’.

SEC. 1502. TRANSMISSION OF EXECUTIVE BRANCH REPORTS PROVIDING CONGRESS WITH CLASSIFIED SUMMARIES OF ARMS CONTROL DEVELOPMENTS.

    (a) REPORTING REQUIREMENT- The Director of the Arms Control and Disarmament Agency (or the Secretary of State, if the Arms Control and Disarmament Agency becomes an element of the Department of State) shall transmit to the Committee on National Security of the House of Representatives on a periodic basis reports containing classified summaries of arms control developments.

    (b) CONTENTS OF REPORTS- The reports required by subsection (a) shall include information reflecting the activities of forums established to consider issues relating to treaty implementation and treaty compliance.

SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS CAPABILITIES BETWEEN UNITED STATES AND RUSSIA.

    Not later than 3 months after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the status and adequacy of current direct communications capabilities between the governments of the United States and Russia. The report shall identify each existing direct communications link between those governments and each such link that is designed to be used, or is available to be used, in an emergency situation. The Secretary shall describe in the report any shortcomings with the existing communications capabilities and shall include such proposals as the Secretary considers appropriate to improve those capabilities. In considering improvements to propose, the Secretary shall assess the feasibility and desirability of establishing a direct communications link between the commanders of appropriate United States unified and specified commands, including the United States Space Command and the United States Strategic Command, and their Russian counterparts.

SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

    (a) FINDINGS- The Congress makes the following findings:

      (1) The 7,000 to 12,000 or more nonstrategic (or ‘tactical’) nuclear weapons estimated by the United States Strategic Command to be in the Russian arsenal may present the greatest threat of sale or theft of a nuclear warhead in the world today.

      (2) As the number of deployed strategic warheads in the Russian and United States arsenals declines to just a few thousand under the START accords, Russia’s vast superiority in tactical nuclear warheads--many of which have yields equivalent to strategic nuclear weapons--could become strategically destabilizing.

      (3) While the United States has unilaterally reduced its inventory of tactical nuclear weapons by nearly 90 percent since the end of the Cold War, Russia is behind schedule in implementing the steep tactical nuclear arms reductions pledged by former Soviet President Gorbachev in 1991 and Russian President Yeltsin in 1992, perpetuating the dangers from Russia’s tactical nuclear stockpile.

    (b) SENSE OF CONGRESS- It is the sense of Congress that the President should call on Russia to expedite reduction of its tactical nuclear arsenal in accordance with the promises made in 1991 and 1992.

    (c) REPORT- Not later than March 15, 1999, the Secretary of Defense shall submit to Congress a report on the nonstrategic nuclear weapons of Russia. The report shall include--

      (1) estimates regarding the current numbers, types, yields, viability, and locations of those weapons;

      (2) an assessment of the strategic implications of Russia’s nonstrategic arsenal, including the potential use of those weapons in a strategic role or the use of their components in strategic nuclear systems and the potential of Russian superiority in tactical nuclear weapons to destabilize the overall nuclear balance as strategic nuclear weapons are sharply reduced under the START accords;

      (3) an assessment of the extent of the current threat of theft, sale, or unauthorized use of the warheads of those weapons, including an analysis of Russian command and control as it concerns the use of tactical nuclear weapons;

      (4) a summary of past, current, and planned efforts to work cooperatively with Russia to account for, secure, and reduce Russia’s stockpile of tactical nuclear weapons and associated fissile material;

      (5) a summary of how the United States would prevent, or plans to cope militarily with, scenarios in which a deterioration in relations with Moscow causes Russia to redeploy tactical nuclear weapons or in which Russia threatens to employ, or actually employs, tactical nuclear weapons in a local or regional conflict involving the United States or allies of the United States; and

      (6) an assessment of the steps that could be taken by the United States to enhance military preparedness in order (A) to deter any potential attempt by Russia to possibly exploit its advantage in tactical nuclear weapons through coercive ‘nuclear diplomacy’ or on the battlefield, or (B) to counter Russia if Russia should make such an attempt to exploit its advantage in tactical nuclear weapons.

    (d) VIEWS- The Secretary of Defense shall include in the report under subsection (c) the views of the Director of Central Intelligence and of the commander of the United States Strategic Command.

Subtitle B--Satellite Export Controls

SEC. 1511. SENSE OF CONGRESS.

    It is the sense of Congress that--

      (1) United States business interests must not be placed above United States national security interests;

      (2) United States foreign policy and the policies of the United States regarding commercial relations with other countries should affirm the importance of observing and adhering to the Missile Technology Control Regime (MTCR);

      (3) the United States should encourage universal observance of the Guidelines to the Missile Technology Control Regime;

      (4) the exportation or transfer of advanced communication satellites and related technologies from United States sources to foreign recipients should not increase the risks to the national security of the United States;

      (5) due to the military sensitivity of the technologies involved, it is in the national security interests of the United States that United States satellites and related items be subject to the same export controls that apply under United States law and practices to munitions;

      (6) the United States should not issue any blanket waiver of the suspensions contained in section 902 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101-246), regarding the export of satellites of United States origin intended for launch from a launch vehicle owned by the People’s Republic of China;

      (7) the United States should pursue policies that protect and enhance the United States space launch industry; and

      (8) the United States should not export to the People’s Republic of China missile equipment or technology that would improve the missile or space launch capabilities of the People’s Republic of China.

SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR TECHNOLOGY TO CHINA.

    The President shall certify to the Congress at least 15 days in advance of any export to the People’s Republic of China of missile equipment or technology (as defined in section 74 of the Arms Export Control Act (22 U.S.C. 2797c)) that--

      (1) such export is not detrimental to the United States space launch industry; and

      (2) the missile equipment or technology, including any indirect technical benefit that could be derived from such export, will not measurably improve the missile or space launch capabilities of the People’s Republic of China.

SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.

    (a) CONTROL OF SATELLITES ON THE UNITED STATES MUNITIONS LIST- Notwithstanding any other provision of law, all satellites and related items that are on the Commerce Control List of dual-use items in the Export Administration Regulations (15 CFR part 730 et seq.) on the date of the enactment of this Act shall be transferred to the United States Munitions List and controlled under section 38 of the Arms Export Control Act (22 U.S.C. 2778).

    (b) DEFENSE TRADE CONTROLS REGISTRATION FEES- Section 45 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2717) is amended--

      (1) in subsection (a)--

        (A) by striking out ‘$700,000’ and inserting in lieu thereof ‘100 percent’; and

        (B) by striking out ‘(a) DEFENSE TRADE CONTROLS REGISTRATION FEES- ’; and

      (2) by striking out subsection (b).

    (c) EFFECTIVE DATE- (1) Subsection (a) shall take effect on March 15, 1999, and shall not apply to any export license issued before such effective date or to any export license application made under the Export Administration Regulations before such effective date.

    (2) The amendments made by subsection (b) shall be effective as of October 1, 1998.

    (d) REPORT- Not later than January 1, 1999, the Secretary of State, in consultation with the Secretary of Defense and the Secretary of Commerce, shall submit to Congress a report containing--

      (1) a detailed description of the plans of the Department of State to implement the requirements of this section, including any organizational changes that are required and any Executive orders or regulations that may be required;

      (2) an identification and explanation of any steps that should be taken to improve the license review process for exports of the satellites and related items described in subsection (a), including measures to shorten the timelines for license application reviews, and any measures relating to the transparency of the license review process and dispute resolution procedures;

      (3) an evaluation of the adequacy of resources available to the Department of State, including fiscal and personnel resources, to carry out the additional activities required by this section; and

      (4) any recommendations for additional actions, including possible legislation, to improve the export licensing process under the Arms Export Control Act for the satellites and related items described in subsection (a).

SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.

    (a) ACTIONS BY THE PRESIDENT- Notwithstanding any other provision of law, the President shall take such actions as are necessary to implement the following requirements for improving national security controls in the export licensing of satellites and related items:

      (1) MANDATORY TECHNOLOGY CONTROL PLANS- All export licenses shall require a technology transfer control plan approved by the Secretary of Defense and an encryption technology transfer control plan approved by the Director of the National Security Agency.

      (2) MANDATORY MONITORS AND REIMBURSEMENT-

        (A) MONITORING OF PROPOSED FOREIGN LAUNCH OF SATELLITES- In any case in which a license is approved for the export of a satellite or related items for launch in a foreign country, the Secretary of Defense shall monitor all aspects of the launch in order to ensure that no unauthorized transfer of technology occurs, including technical assistance and technical data. The costs of such monitoring services shall be fully reimbursed to the Department of Defense by the person or entity receiving such services. All reimbursements received under this subparagraph shall be credited to current appropriations available for the payment of the costs incurred in providing such services.

        (B) CONTENTS OF MONITORING- The monitoring under subparagraph (A) shall cover, but not be limited to--

          (i) technical discussions and activities, including the design, development, operation, maintenance, modification, and repair of satellites, satellite components, missiles, other equipment, launch facilities, and launch vehicles;

          (ii) satellite processing and launch activities, including launch preparation, satellite transportation, integration of the satellite with the launch vehicle, testing and checkout prior to launch, satellite launch, and return of equipment to the United States;

          (iii) activities relating to launch failure, delay, or cancellation, including post-launch failure investigations; and

          (iv) all other aspects of the launch.

      (3) MANDATORY LICENSES FOR CRASH-INVESTIGATIONS- In the event of the failure of a launch from a foreign country of a satellite of United States origin--

        (A) the activities of United States persons or entities in connection with any subsequent investigation of the failure are subject to the controls established under section 38 of the Arms Export Control Act, including requirements for licenses issued by the Secretary of State for participation in that investigation;

        (B) officials of the Department of Defense shall monitor all activities associated with the investigation to insure against unauthorized transfer of technical data or services; and

        (C) the Secretary of Defense shall establish and implement a technology transfer control plan for the conduct of the investigation to prevent the transfer of information that could be used by the foreign country to improve its missile or space launch capabilities.

      (4) MANDATORY NOTIFICATION AND CERTIFICATION- All technology transfer control plans for satellites or related items shall require any United States person or entity involved in the export of a satellite of United States origin or related items to notify the Department of Defense in advance of all meetings and interactions with any foreign person or entity providing launch services and require the United States person or entity to certify after the launch that it has complied with this notification requirement.

      (5) MANDATORY INTELLIGENCE COMMUNITY REVIEW- The Secretary of Commerce and the Secretary of State shall provide to the Secretary of Defense and the Director of Central Intelligence copies of all export license applications and technical assistance agreements submitted for approval in connection with launches in foreign countries of satellites to verify the legitimacy of the stated end-user or end-users.

      (6) MANDATORY SHARING OF APPROVED LICENSES AND AGREEMENTS- The Secretary of State shall provide copies of all approved export licenses and technical assistance agreements associated with launches in foreign countries of satellites to the Secretaries of Defense and Energy, the Director of Central Intelligence, and the Director of the Arms Control and Disarmament Agency.

      (7) MANDATORY NOTIFICATION TO CONGRESS ON LICENSES- Upon issuing a license for the export of a satellite or related items for launch in a foreign country, the head of the department or agency issuing the license shall so notify Congress.

      (8) MANDATORY REPORTING ON MONITORING ACTIVITIES- The Secretary of Defense shall provide to Congress an annual report on the monitoring of all launches in foreign countries of satellites of United States origin.

      (9) ESTABLISHING SAFEGUARDS PROGRAM- The Secretary of Defense shall establish a program for recruiting, training, and maintaining a staff dedicated to monitoring launches in foreign countries of satellites and related items of United States origin.

    (b) EXCEPTION- This section shall not apply to the export of a satellite or related items for launch in, or by nationals of, a country that is a member of the North Atlantic Treaty Organization or that is a major non-NATO ally of the United States.

    (c) EFFECTIVE DATE- The President shall take the actions required by subsection (a) not later than 45 days after the date of the enactment of this Act.

SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY PEOPLE’S REPUBLIC OF CHINA.

    (a) REQUIREMENT FOR REPORT- Each report to Congress submitted pursuant to subsection (b) of section 902 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note; Public Law 101-246) to waive the restrictions contained in subsection (a) of that section on the export to the People’s Republic of China of any satellite of United States origin or related items shall be accompanied by a detailed justification setting forth the following:

      (1) A detailed description of all militarily sensitive characteristics integrated within, or associated with, the satellite.

      (2) An estimate of the number of United States civilian contract personnel expected to be needed in country to carry out the proposed satellite launch.

      (3)(A) A detailed description of the United States Government’s plan to monitor the proposed satellite launch to ensure that no unauthorized transfer of technology occurs, together with an estimate of the number of officers and employees of the United States that are expected to be needed in country to carry out monitoring of the proposed satellite launch; and

      (B) the estimated cost to the Department of Defense of monitoring the proposed satellite launch and the amount of such cost that is to be reimbursed to the department.

      (4) The reasons why the proposed satellite launch is in the national security interest of the United States.

      (5) The impact of the proposed export on employment in the United States, including the number of new jobs created in the United States, on a State-by-State basis, as a direct result of the proposed export.

      (6) The number of existing jobs in the United States that would be lost, on a State-by-State basis, as a direct result of the proposed export not being licensed.

      (7) The impact of the proposed export on the balance of trade between the United States and the People’s Republic of China and on reducing the current United States trade deficit with the People’s Republic of China.

      (8) The impact of the proposed export on the transition of the People’s Republic of China from a nonmarket economy to a market economy and the long-term economic benefit to the United States.

      (9) The impact of the proposed export on opening new markets to United States-made products through the purchase by the People’s Republic of China of United States-made goods and services not directly related to the proposed export.

      (10) The impact of the proposed export on reducing acts, policies, and practices that constitute significant trade barriers to United States exports or foreign direct investment in the People’s Republic of China by United States nationals.

      (11) The increase that will result from the proposed export in the overall market share of the United States for goods and services in comparison to Japan, France, Germany, the United Kingdom, and Russia.

      (12) The impact of the proposed export on the willingness of the People’s Republic of China to modify its commercial and trade laws, practices, and regulations to make United States-made goods and services more accessible to that market.

      (13) The impact of the proposed export on the willingness of the People’s Republic of China to reduce formal and informal trade barriers and tariffs, duties, and other fees on United States-made goods and services entering that country.

    (b) MILITARILY SENSITIVE CHARACTERISTICS DEFINED- In this section, the term ‘militarily sensitive characteristics’ includes antijamming capability, antennas, crosslinks, baseband processing, encryption devices, radiation-hardened devices, propulsion systems, pointing accuracy, kick motors, and other such characteristics as are specified by the Secretary of Defense.

SEC. 1516. RELATED ITEMS DEFINED.

    In this subtitle, the term ‘related items’ means the satellite fuel, ground support equipment, test equipment, payload adapter or interface hardware, replacement parts, and non-embedded solid propellant orbit transfer engines described in the report submitted to Congress by the Department of State on February 6, 1998, pursuant to section 38(f) of the Arms Export Control Act (22 U.S.C. 2778(f)).

Subtitle C--Other Export Control Matters

SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF DEFENSE.

    (a) FUNCTIONS OF THE UNDER SECRETARY FOR POLICY- Section 134(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    ‘(3) Subject to the authority, direction, and control of the Secretary of Defense, the Under Secretary shall have responsibility for supervising and directing activities of the Department of Defense relating to export controls.’.

    (b) ESTABLISHMENT OF DEPUTY UNDER SECRETARY FOR TECHNOLOGY SECURITY POLICY- (1) Chapter 4 of title 10, United States Code, is amended by inserting after section 134a the following new section:

‘Sec. 134b. Deputy Under Secretary of Defense for Technology Security Policy

    ‘(a) There is in the Office of the Under Secretary of Defense for Policy a Deputy Under Secretary of Defense for Technology Security Policy.

    ‘(b) The Deputy Under Secretary serves as the Director of the Defense Technology Security Administration (or any successor organization charged with similar responsibilities).

    ‘(c) The principal duties of the Deputy Under Secretary are--

      ‘(1) assisting the Under Secretary of Defense for Policy in supervising and directing the activities of the Department of Defense relating to export controls; and

      ‘(2) assisting the Under Secretary of Defense for Policy in developing policies and positions regarding the appropriate export control policies and procedures that are necessary to protect the national security interests of the United States.

    ‘(d) The Deputy Under Secretary shall perform such additional duties and exercise such authority as the Secretary of Defense may prescribe.’.

    (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 134a the following new item:

      ‘134b. Deputy Under Secretary of Defense for Technology Security Policy.’.

    (c) TIME FOR IMPLEMENTATION- The Secretary of Defense shall complete the actions necessary to implement the amendment made by subsection (a) and to establish the office of Deputy Under Secretary of Defense for Technology Security Policy in accordance with section 134b of title 10, United States Code, as added by subsection (b), not later than 60 days after the date of the enactment of this Act.

    (d) REPORT- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the plans of the Secretary for implementing the amendments made by subsections (a) and (b). The report shall include the following:

      (1) A description of any organizational changes that are to be made within the Department of Defense to implement those amendments.

      (2) A description of the role of the Chairman of the Joint Chiefs of Staff in the export control activities of the Department of Defense after those subsections are implemented, together with a discussion of how that role compares to the Chairman’s role in those activities before the implementation of those subsections.

SEC. 1522. RELEASE OF EXPORT INFORMATION BY DEPARTMENT OF COMMERCE TO OTHER AGENCIES FOR PURPOSE OF NATIONAL SECURITY ASSESSMENT.

    (a) RELEASE OF EXPORT INFORMATION- The Secretary of Commerce shall, upon the written request of an official specified in subsection (c), transmit to that official any information relating to exports that is held by the Department of Commerce and is requested by that official for the purpose of assessing national security risks. The Secretary shall transmit such information within 10 business days after receiving such a request.

    (b) NATURE OF INFORMATION- The information referred to in subsection (a) includes information concerning--

      (1) export licenses issued by the Department of Commerce;

      (2) exports that were carried out under an export license issued by the Department of Commerce; and

      (3) exports from the United States that were carried out without an export license.

    (c) REQUESTING OFFICIALS- The officials referred to in subsection (a) are the Secretary of State, the Secretary of Defense, the Secretary of Energy, and the Director of Central Intelligence. Each of those officials may delegate to any other official within their respective departments and agency the authority to request information under subsection (a).

SEC. 1523. NUCLEAR EXPORT REPORTING REQUIREMENT.

    (a) NOTIFICATION OF CONGRESS- The President shall notify Congress upon the granting of a license by the Nuclear Regulatory Commission for the export or reexport of any nuclear-related technology or equipment, including source material, special nuclear material, or equipment or material especially designed or prepared for the processing, use, or production of special nuclear material.

    (b) APPLICABILITY- The requirements of this section shall apply only to an export or reexport to a country that--

      (1) the President has determined is a country that has detonated a nuclear explosive device; and

      (2) is not a member of the North Atlantic Treaty Organization.

SEC. 1524. EXECUTION OF OBJECTION AUTHORITY WITHIN THE DEPARTMENT OF DEFENSE.

    Section 1211 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1932) is amended by adding at the end the following new subsection:

    ‘(g) DELEGATION OF OBJECTION AUTHORITY WITHIN THE DEPARTMENT OF DEFENSE- For the purposes of the Department of Defense, the authority to issue an objection referred to in subsection (a) shall be executed for the Secretary of Defense by an official at the Assistant Secretary level within the office of the Under Secretary of Defense for Policy. In implementing subsection (a), the Secretary of Defense shall ensure that Department of Defense procedures maximize the ability of the Department of Defense to be able to issue an objection within the 10-day period specified in subsection (c).’.

Subtitle D--Counterproliferation Matters

SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

    (a) AMOUNT AUTHORIZED FOR FISCAL YEAR 1999- The total amount of assistance for fiscal year 1999 provided by the Secretary of Defense under section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) that is provided for activities of the Department of Defense in support of the United Nations Special Commission on Iraq, may not exceed $15,000,000.

    (b) EXTENSION OF AUTHORITY TO PROVIDE ASSISTANCE- Subsection (f) of section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by striking out ‘1998’ and inserting in lieu thereof ‘1999’.

SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

    The Congress--

      (1) strongly condemns the decisions by the Governments of India and Pakistan to conduct nuclear tests in May 1998;

      (2) calls for the Governments of India and Pakistan to commit not to conduct any additional nuclear tests;

      (3) urges the Governments of India and Pakistan to take immediate steps to reduce tensions between the two countries;

      (4) urges India and Pakistan to engage in high-level dialogue aimed at reducing the likelihood of armed conflict, enacting confidence and security building measures, and resolving areas of dispute;

      (5) commends all nations to take steps which will reduce tensions in South Asia, including appropriate measures to prevent the transfer of technology that could further exacerbate the arms race in South Asia, and thus avoid further deterioration of security there;

      (6) calls upon the President, leaders of all nations, and the United Nations to encourage a diplomatic, negotiated solution between the Governments of India and Pakistan to promote peace and stability in South Asia and resolve the current impasse;

      (7) encourages United States diplomatic leadership in assisting the Governments of India and Pakistan to seek a negotiated resolution of their 50-year conflict over the disputed territory in Kashmir;

      (8) urges India and Pakistan to take immediate, binding, and verifiable steps to roll back their nuclear programs and come into compliance with internationally accepted norms regarding the proliferation of weapons of mass destruction; and

      (9) urges the United States to reevaluate its bilateral relationship with India and Pakistan, in light of the new regional security realities in South Asia, with the goal of preventing further nuclear and ballistic missile proliferation, diffusing long-standing regional rivalries between India and Pakistan, and securing commitments from India and Pakistan which, if carried out, could result in a calibrated lifting of United States sanctions imposed under the Arms Export Control Act and the Nuclear Proliferation Prevention Act of 1994.

SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED MISSILE THREAT IN ASIA-PACIFIC REGION.

    (a) STUDY- The Secretary of Defense shall carry out a study of the architecture requirements for the establishment and operation of a theater ballistic missile defense system in the Asia-Pacific region that would have the capability to protect key regional allies of the United States.

    (b) REPORT- (1) Not later than January 1, 1999, the Secretary shall submit to the Committee on National Security of the House of Representatives and the Committee on Armed Services of the Senate a report containing--

      (A) the results of the study conducted under subsection (a);

      (B) the factors used to obtain such results; and

      (C) a description of any United States missile defense system currently deployed or under development that could be transferred to key allies of the United States in the Asia-Pacific region to provide for their self-defense against limited ballistic missile attacks.

    (2) The report shall be submitted in both classified and unclassified form.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ‘Military Construction Authorization Act for Fiscal Year 1999’.

TITLE XXI--ARMY

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

      Sec.2102.Family housing.

      Sec.2103.Improvements to military family housing units.

      Sec.2104.Authorization of appropriations, Army.

      Sec.2105.Modification of authority to carry out fiscal year 1998 projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) INSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(1), the Secretary of the Army may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table:

Army: Inside the United States
-----------------------------------------------------------------------------------
State            Installation or location                                   Amount 
-----------------------------------------------------------------------------------
Alabama          Anniston Army Depot                                    $3,550,000 
                 Fort Rucker                                           $14,300,000 
                 Redstone Arsenal                                       $1,550,000 
Alaska           Fort Wainwright                                       $22,600,000 
California       Fort Irwin                                            $14,800,000 
Georgia          Fort Benning                                          $28,600,000 
Hawaii           Schofield Barracks                                    $71,000,000 
Illinois         Rock Island Arsenal                                    $5,300,000 
Indiana          Crane Army Ammunition Activity                         $7,100,000 
Kansas           Fort Riley                                            $41,000,000 
Kentucky         Blue Grass Army Depot                                  $5,300,000 
                 Fort Campbell                                         $75,000,000 
                 Fort Knox                                             $23,000,000 
Louisiana        Fort Polk                                              $8,300,000 
Maryland         Fort Detrick                                           $3,550,000 
                 Fort Meade                                             $5,300,000 
Missouri         Fort Leonard Wood                                     $28,200,000 
New Jersey       Fort Monmouth                                          $7,600,000 
                 Picatinny Arsenal                                      $8,400,000 
New York         Fort Drum                                              $4,650,000 
                 United States Military Academy, West Point            $85,000,000 
North Carolina   Fort Bragg                                            $95,900,000 
Oklahoma         Fort Sill                                             $13,800,000 
                 McAlester Army Ammunition Plant                       $10,800,000 
Texas            Fort Bliss                                             $4,100,000 
                 Fort Hood                                             $32,500,000 
                 Fort Sam Houston                                      $27,300,000 
Utah             Tooele Army Depot                                      $3,900,000 
Virginia         National Ground Intelligence Center, Charlottesville  $46,200,000 
                 Fort Eustis                                           $41,181,000 
                 Fort Myer                                              $6,200,000 
Washington       Fort Lewis                                            $18,200,000 
CONUS Classified Classified Location                                    $4,600,000 
                     Total                                            $768,781,000 
-----------------------------------------------------------------------------------

    (b) OUTSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(2), the Secretary of the Army may acquire real property and carry out military construction projects for the locations outside the United States, and in the amounts, set forth in the following table:

Army: Outside the United States
------------------------------------------------
Country   Installation or location       Amount 
------------------------------------------------
Belgium   80th Area Support Group    $6,300,000 
Germany   Schweinfurt               $18,000,000 
          Wurzburg                   $4,250,000 
Korea     Camp Casey                $21,400,000 
          Camp Castle               $18,226,000 
          Camp Humphreys             $8,500,000 
          Camp Stanley               $5,800,000 
Kwajalein Kwajalein Atoll           $48,600,000 
              Total                $131,076,000 
------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) CONSTRUCTION AND ACQUISITION- Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may construct or acquire family housing units (including land acquisition) at the installations, for the purposes, and in the amounts set forth in the following table:

Army: Family Housing
-------------------------------------------------------------
State          Installation orlocation Purpose        Amount 
-------------------------------------------------------------
Alabama        Redstone Arsenal        118 Units $14,000,000 
Hawaii         Schofield Barracks      64 Units  $14,700,000 
North Carolina Fort Bragg              170 Units $19,800,000 
Texas          Fort Hood               154 Units $21,600,000 
Virginia       Fort Lee                80 Units  $13,000,000 
                                         Total   $83,100,000 
-------------------------------------------------------------

    (b) PLANNING AND DESIGN- Using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of family housing units in an amount not to exceed $6,350,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may improve existing military family housing units in an amount not to exceed $48,479,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1998, for military construction, land acquisition, and military family housing functions of the Department of the Army in the total amount of $2,098,713,000 as follows:

      (1) For military construction projects inside the United States authorized by section 2101(a), $609,781,000.

      (2) For military construction projects outside the United States authorized by section 2101(b), $95,076,000.

      (3) For unspecified minor construction projects authorized by section 2805 of title 10, United States Code, $12,500,000.

      (4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $64,269,000.

      (5) For military family housing functions:

        (A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $137,929,000.

        (B) For support of military family housing (including the functions described in section 2833 of title 10, United States Code), $1,097,697,000.

      (6) For the construction of the missile software engineering annex, phase II, Redstone Arsenal, Alabama, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1966), $13,600,000.

      (7) For the construction of a disciplinary barracks, phase II, Fort Leavenworth, Kansas, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998, $29,000,000.

      (8) For the construction of the whole barracks complex renewal, Fort Sill, Oklahoma, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998, $20,500,000.

      (9) For rail yard expansion at Fort Carson, Colorado, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998, $23,000,000.

      (10) For the construction of an aerial gunnery range at Fort Drum, New York, authorized by section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998, $9,000,000.

    (b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS- Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2101 of this Act may not exceed--

      (1) the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a);

      (2) $16,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a multipurpose digital training range at Fort Knox, Kentucky);

      (3) $15,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a railhead facility at Fort Hood, Texas);

      (4) $73,000,000 (the balance of the amount authorized under section 2101(a) for the construction of a cadet development center at the United States Military Academy, West Point, New York);

      (5) $36,000,000 (the balance of the amount authorized under section 2101(b) for the construction of a powerplant on Roi Namur Island at Kwajalein Atoll, Kwajalein);

      (6) $3,500,000 (the balance of the amount authorized under section 2101(a) for the construction of the whole barracks complex renewal at Fort Wainwright, Alaska);

      (7) $24,500,000 (the balance of the amount authorized under section 2101(a) for the construction of the whole barracks complex renewal at Fort Riley, Kansas); and

      (8) $27,000,000 (the balance of the amount authorized under section 2101(a) for the construction of the whole barracks complex renewal at Fort Campbell, Kentucky).

    (c) ADJUSTMENTS- The total amount authorized to be appropriated pursuant to paragraphs (1) through (10) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by--

      (1) $2,639,000, which represents the combination of project savings in military family housing construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes;

      (2) $3,000,000, which represents the combination of savings in military family housing support resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes; and

      (3) $8,000,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 PROJECTS.

    (a) MODIFICATION- The table in section 2101(a) of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1967) is amended--

      (1) in the item relating to Fort Drum, New York, by striking out ‘$24,400,000’ in the amount column and inserting in lieu thereof ‘$24,900,000’;

      (2) in the item relating to Fort Sill, Oklahoma, by striking out ‘$25,000,000’ in the amount column and inserting in lieu thereof ‘$28,500,000’; and

      (3) by striking out the amount identified as the total in the amount column and inserting in lieu thereof ‘$602,750,000’.

    (b) CONFORMING AMENDMENTS- Section 2104 of that Act (111 Stat. 1968) is amended--

      (1) in subsection (a)--

        (A) in the matter preceding paragraph (1), by striking out ‘$2,010,466,000’ and inserting in lieu thereof ‘$2,013,966,000’; and

        (B) in paragraph (1), by striking out ‘$435,350,000’ and inserting in lieu thereof ‘$438,850,000’; and

      (2) in subsection (b)(8), by striking out ‘$8,500,000’ and inserting in lieu thereof ‘$9,000,000’.

TITLE XXII--NAVY

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

      Sec.2202.Family housing.

      Sec.2203.Improvements to military family housing units.

      Sec.2204.Authorization of appropriations, Navy.

      Sec.2205.Authorization to accept road construction project, Marine Corps Base, Camp Lejeune, North Carolina.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) INSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(1), the Secretary of the Navy may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table:

Navy: Inside the United States
-------------------------------------------------------------------------------------------------------------------------
State                Installation or location                                                                     Amount 
-------------------------------------------------------------------------------------------------------------------------
Arizona              Marine Corps Air Station, Yuma                                                          $11,010,000 
                     Naval Observatory Detachment, Flagstaff                                                    $990,000 
California           Marine Corps Air Station, Miramar                                                       $29,570,000 
                     Marine Corps Base, Camp Pendleton                                                       $40,430,000 
                     Naval Air Station, Lemoore                                                              $20,640,000 
                     Naval Air Warfare Center Weapons Division, China Lake                                   $10,140,000 
                     Naval Facility, San Clemente Island                                                      $8,350,000 
                     Naval Submarine Base, San Diego                                                         $11,400,000 
Connecticut          Naval Submarine Base, New London                                                        $11,330,000 
District of Columbia Naval District, Washington                                                                 $790,000 
Florida              Naval Air Station, Key West                                                              $3,730,000 
                     Naval Air Station, Jacksonville                                                          $1,500,000 
                     Naval Air Station, Whiting Field                                                         $1,400,000 
                     Naval Station, Mayport                                                                   $6,163,000 
Georgia              Marine Corps Logistics Base, Albany                                                      $2,800,000 
                     Naval Submarine Base, Kings Bay                                                          $2,550,000 
Hawaii               Fleet and Industrial Supply Center, Pearl Harbor                                         $9,730,000 
                     Marine Corps Air Station, Kaneohe Bay                                                   $46,410,000 
                     Naval Communications & Telecommunications Area Master Station Eastern Pacific, Wahiawa   $1,970,000 
                     Naval Shipyard, Pearl Harbor                                                            $11,400,000 
                     Naval Station, Pearl Harbor                                                             $18,180,000 
                     Naval Submarine Base, Pearl Harbor                                                       $8,060,000 
                     Navy Public Works Center, Pearl Harbor                                                  $28,967,000 
Illinois             Naval Training Center, Great Lakes                                                      $19,950,000 
Indiana              Naval Surface Warfare Center, Crane                                                     $11,110,000 
Maryland             Naval Surface Warfare Center, Indian Head Division, Indian Head                         $13,270,000 
                     United States Naval Academy                                                              $4,300,000 
Mississippi          Naval Air Station, Meridian                                                              $3,280,000 
                     Naval Construction Battalion Center, Gulfport                                           $10,670,000 
North Carolina       Marine Corps Air Station, Cherry Point                                                   $6,040,000 
                     Marine Corps Base, Camp LeJeune                                                         $14,600,000 
Pennsylvania         Naval Surface Warfare Center Ship Systems Engineering Station, Philadelphia              $2,410,000 
                     Naval Inventory Control Point, Mechanicsburg                                             $1,600,000 
                     Naval Inventory Control Point, Philadelphia                                              $1,550,000 
Rhode Island         Naval Education and Training Center, Newport                                             $5,630,000 
                     Naval Undersea Warfare Center Division, Newport                                          $9,140,000 
South Carolina       Marine Corps Air Station, Beaufort                                                       $1,770,000 
                     Marine Corps Reserve Detachment, Parris Island                                          $15,990,000 
                     Naval Weapons Station, Charleston                                                        $9,737,000 
Texas                Naval Station, Ingleside                                                                $12,200,000 
Virginia             Fleet and Industrial Supply Center, Norfolk (Craney Island)                              $1,770,000 
                     Fleet Training Center, Norfolk                                                           $5,700,000 
                     Naval Air Station, Oceana                                                                $6,400,000 
                     Naval Shipyard, Norfolk, Portsmouth                                                      $6,180,000 
                     Naval Station, Norfolk                                                                  $45,530,000 
                     Naval Surface Warfare Center, Dahlgren                                                  $15,680,000 
                     Tactical Training Group Atlantic, Dam Neck                                               $2,430,000 
Washington           Naval Shipyard, Puget Sound                                                              $4,300,000 
                     Strategic Weapons Facility Pacific, Bremerton                                            $2,750,000 
                         Total                                                                              $521,497,000 
-------------------------------------------------------------------------------------------------------------------------

    (b) OUTSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(2), the Secretary of the Navy may acquire real property and carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in the following table:

Navy: Outside the United States
----------------------------------------------------------------------------
Country        Installation or location                              Amount 
----------------------------------------------------------------------------
Greece         Naval Support Activity, Souda Bay                 $5,260,000 
Guam           Naval Activities, Guam                           $10,310,000 
Italy          Naval Support Activity, Naples                   $18,270,000 
United Kingdom Joint Maritime Communications Center, St. Mawgan  $2,010,000 
                   Total                                        $35,850,000 
----------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) CONSTRUCTION AND ACQUISITION- Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may construct or acquire family housing units (including land acquisition) at the installations, for the purposes, and in the amounts set forth in the following table:

Navy: Family Housing
------------------------------------------------------------------------
State      Installation or location               Purpose        Amount 
------------------------------------------------------------------------
California Naval Air Station, Lemoore             162 Units $30,379,000 
Hawaii     Navy Public Works Center, Pearl Harbor 150 Units $29,125,000 
                                                    Total   $59,504,000 
------------------------------------------------------------------------

    (b) PLANNING AND DESIGN- Using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed $15,618,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may improve existing military family housing units in an amount not to exceed $227,791,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1998, for military construction, land acquisition, and military family housing functions of the Department of the Navy in the total amount of $1,812,476,000 as follows:

      (1) For military construction projects inside the United States authorized by section 2201(a), $503,997,000.

      (2) For military construction projects outside the United States authorized by section 2201(b), $35,850,000.

      (3) For unspecified minor construction projects authorized by section 2805 of title 10, United States Code, $9,900,000.

      (4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $60,846,000.

      (5) For military family housing functions:

        (A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $302,913,000.

        (B) For support of military housing (including functions described in section 2833 of title 10, United States Code), $915,293,000.

    (b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS- Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2201 of this Act may not exceed--

      (1) the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a);

      (2) $13,500,000 (the balance of the amount authorized under section 2202(a) for the construction of a berthing pier at Naval Station, Norfolk, Virginia); and

      (3) $4,000,000 (the balance of the amount authorized under section 2201(a) for the construction of a bachelor enlisted quarters at Marine Corps Air Station, Kaneohe Bay, Hawaii).

    (c) ADJUSTMENT- The total amount authorized to be appropriated pursuant to paragraphs (1) through (5) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by--

      (1) $7,323,000, which represents the combination of project savings in military family housing construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes;

      (2) $3,000,000, which represents the combination of savings in military family housing support resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes; and

      (3) $6,000,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

    The Secretary of the Navy may accept from the State of North Carolina a road construction project valued at approximately $2,000,000, which is to be constructed at Marine Corps Base, Camp Lejeune, North Carolina, in accordance with plans and specifications acceptable to the Secretary.

TITLE XXIII--AIR FORCE

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

      Sec.2302.Family housing.

      Sec.2303.Improvements to military family housing units.

      Sec.2304.Authorization of appropriations, Air Force.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) INSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(1), the Secretary of the Air Force may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table:

Air Force: Inside the United States
-------------------------------------------------------------------------------
State                Installation or location                           Amount 
-------------------------------------------------------------------------------
Alabama              Maxwell Air Force Base                        $19,398,000 
Alaska               Eielson Air Force Base                         $4,352,000 
Arizona              Luke Air Force Base                            $3,400,000 
Arkansas             Little Rock Air Force Base                     $1,500,000 
California           Edwards Air Force Base                        $10,361,000 
                     Travis Air Force Base                          $4,250,000 
                     Vandenberg Air Force Base                     $18,709,000 
Colorado             Falcon Air Force Station                       $9,601,000 
                     United States Air Force Academy                $4,413,000 
District of Columbia Bolling Air Force Base                         $2,948,000 
Florida              Eglin Air Force Base                          $20,437,000 
                     Eglin Auxiliary Field 9                        $3,837,000 
                     MacDill Air Force Base                         $9,808,000 
                     Tyndall Air Force Base                         $3,600,000 
Georgia              Robins Air Force Base                         $11,894,000 
Hawaii               Hickam Air Force Base                          $5,890,000 
Idaho                Mountain Home Air Force Base                  $17,897,000 
Kansas               McConnell Air Force Base                       $4,450,000 
Louisiana            Barksdale Air Force Base                       $9,300,000 
Maryland             Andrews Air Force Base                         $4,448,000 
Massachusetts        Hanscom Air Force Base                        $10,000,000 
Mississippi          Columbus Air Force Base                        $5,700,000 
                     Keesler Air Force Base                        $35,526,000 
Montana              Malmstrom Air Force Base                       $7,900,000 
Nevada               Indian Springs Air Force Auxiliary Air Field  $15,013,000 
                     Nellis Air Force Base                          $6,378,000 
New Jersey           McGuire Air Force Base                         $6,044,000 
New Mexico           Holloman Air Force Base                       $11,100,000 
                     Kirtland Air Force Base                        $8,574,000 
North Carolina       Seymour Johnson Air Force Base                 $6,100,000 
North Dakota         Grand Forks Air Force Base                    $11,486,000 
                     Minot Air Force Base                           $8,500,000 
Ohio                 Wright-Patterson Air Force Base               $22,000,000 
Oklahoma             Altus Air Force Base                           $9,300,000 
                     Tinker Air Force Base                         $24,985,000 
                     Vance Air Force Base                           $6,223,000 
South Carolina       Charleston Air Force Base                     $24,330,000 
South Dakota         Ellsworth Air Force Base                       $6,500,000 
Tennessee            Arnold Air Force Base                         $11,600,000 
Texas                Dyess Air Force Base                           $4,750,000 
                     Goodfellow Air Force Base                      $7,300,000 
                     Lackland Air Force Base                       $14,930,000 
                     Laughlin Air Force Base                        $7,315,000 
                     Randolph Air Force Base                        $3,166,000 
Utah                 Hill Air Force Base                            $2,600,000 
Washington           Fairchild Air Force Base                      $15,220,000 
                     McChord Air Force Base                        $51,847,000 
                        Total                                     $514,880,000 
-------------------------------------------------------------------------------

    (b) OUTSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(2), the Secretary of the Air Force may acquire real property and carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in the following table:

Air Force: Outside the United States
-------------------------------------------------------
Country        Installation or location         Amount 
-------------------------------------------------------
Germany        Spangdahlem Air Base         $9,501,000 
Korea          Kunsan Air Base              $5,958,000 
               Osan Air Base                $7,496,000 
Turkey         Incirlik Air Base            $2,949,000 
United Kingdom Royal Air Force, Lakenheath $15,838,000 
               Royal Air Force, Mildenhall $24,960,000 
                  Total                    $66,702,000 
-------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) CONSTRUCTION AND ACQUISITION- Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may construct or acquire family housing units (including land acquisition) at the installations, for the purposes, and in the amounts set forth in the following table:

Air Force: Family Housing
----------------------------------------------------------------------------
State       Installation or location        Purpose                  Amount 
----------------------------------------------------------------------------
Alabama     Maxwell Air Force Base          143 Units           $16,300,000 
Alaska      Eielson Air Force Base          46 Units            $12,932,000 
California  Edwards Air Force Base          48 Units            $12,580,000 
            Vandenberg Air Force Base       95 Units            $18,499,000 
Delaware    Dover Air Force Base            55 Units             $8,998,000 
Florida     MacDill Air Force Base          48 Units             $7,609,000 
            Patrick Air Force Base          46 Units             $9,692,000 
            Tyndall Air Force Base          122 Units           $14,500,000 
Mississippi Columbus Air Force Base         52 Units             $6,800,000 
            Keesler Air Force Base          52 Units             $6,800,000 
Montana     Malmstrom Air Force Base        50 Units            $10,000,000 
Nebraska    Offutt Air Force Base           Ancillary Facility     $870,000 
            Offutt Air Force Base           Ancillary Facility     $900,000 
            Offutt Air Force Base           90 Units            $12,212,000 
Nevada      Nellis Air Force Base           28 Units             $5,000,000 
New Mexico  Kirtland Air Force Base         37 Units             $6,400,000 
Ohio        Wright-Patterson Air Force Base 40 Units             $5,600,000 
Texas       Dyess Air Force Base            64 Units             $9,415,000 
            Sheppard Air Force Base         65 Units             $7,000,000 
Washington  Fairchild Air Force Base        Ancillary Facility   $1,692,000 
            Fairchild Air Force Base        14 Units             $2,300,000 
                                              Total            $176,099,000 
----------------------------------------------------------------------------

    (b) PLANNING AND DESIGN- Using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed $11,342,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force may improve existing military family housing units in an amount not to exceed $104,108,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1998, for military construction, land acquisition, and military family housing functions of the Department of the Air Force in the total amount of $1,679,978,000 as follows:

      (1) For military construction projects inside the United States authorized by section 2301(a), $514,880,000.

      (2) For military construction projects outside the United States authorized by section 2301(b), $66,702,000.

      (3) For unspecified minor construction projects authorized by section 2805 of title 10, United States Code, $8,135,000.

      (4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $38,092,000.

      (5) For military housing functions:

        (A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $291,549,000.

        (B) For support of military family housing (including the functions described in section 2833 of title 10, United States Code), $785,204,000.

    (b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS- Notwithstanding the cost variations authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2301 of this Act may not exceed the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a).

    (c) ADJUSTMENT- The total amount authorized to be appropriated pursuant to paragraphs (1) through (5) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by--

      (1) $10,584,000, which represents the combination of project savings in military family housing construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes;

      (2) $2,000,000,000, which represents the combination of savings in military family housing support resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes; and

      (3) $12,000,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

TITLE XXIV--DEFENSE AGENCIES

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

      Sec.2402.Improvements to military family housing units.

      Sec.2403.Energy conservation projects.

      Sec.2404.Authorization of appropriations, Defense Agencies.

      Sec.2405.Repeal of fiscal year 1997 authorization of appropriations for certain military housing improvement program.

      Sec.2406.Modification of authority to carry out certain fiscal year 1995 projects.

      Sec.2407.Modification of authority to carry out fiscal year 1990 project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) INSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2404(a)(1), the Secretary of Defense may acquire real property and carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in the following table:

Defense Agencies: Inside the United States
----------------------------------------------------------------------------------------------------------------
Agency                            Installation or location                                               Amount 
----------------------------------------------------------------------------------------------------------------
Chemical Demilitarization         Aberdeen Proving Ground, Maryland                                $186,350,000 
                                  Newport Army Depot, Indiana                                      $191,550,000 
Defense Logistics Agency          Defense Fuel Support Point, Fort Sill, Oklahoma                    $3,500,000 
                                  Defense Fuel Support Point, Jacksonville Annex, Mayport, Florida  $11,020,000 
                                  Defense Fuel Support Point, Jacksonville, Florida                 $11,000,000 
                                  Defense General Supply Center, Richmond (DLA), Virginia           $10,500,000 
                                  Defense Fuel Supply Center, Camp Shelby, Mississippi               $5,300,000 
                                  Defense Fuel Supply Center, Elmendorf Air Force Base, Alaska      $19,500,000 
                                  Defense Fuel Supply Center, Pope Air Force Base, North Carolina    $4,100,000 
                                  Various Locations                                                  $1,300,000 
Defense Medical Facilities Office Barksdale Air Force Base, Louisiana                                $3,450,000 
                                  Beale Air Force Base, California                                   $3,500,000 
                                  Carlisle Barracks, Pennsylvania                                    $4,678,000 
                                  Cheatham Annex, Virginia                                          $11,300,000 
                                  Edwards Air Force Base, California                                 $6,000,000 
                                  Eglin Air Force Base, Florida                                      $9,200,000 
                                  Fort Bragg, North Carolina                                         $6,500,000 
                                  Fort Hood, Texas                                                  $14,100,000 
                                  Fort Stewart/Hunter Army Air Field, Georgia                       $10,400,000 
                                  Grand Forks Air Force Base, North Dakota                           $5,600,000 
                                  Holloman Air Force Base, New Mexico                                $1,300,000 
                                  Keesler Air Force Base, Mississippi                                  $700,000 
                                  Marine Corps Air Station, Camp Pendleton, California               $6,300,000 
                                  McChord Air Force Base, Washington                                $20,000,000 
                                  Moody Air Force Base, Georgia                                     $11,000,000 
                                  Naval Air Station, Pensacola, Florida                             $25,400,000 
                                  Naval Hospital, Bremerton, Washington                             $28,000,000 
                                  Naval Hospital, Great Lakes, Illinois                              $7,100,000 
                                  Naval Station, San Diego, California                               $1,350,000 
                                  Naval Submarine Base, Bangor, Washington                           $5,700,000 
                                  Travis Air Force Base, California                                  $1,700,000 
Defense Education Activity        Marine Corps Base, Camp LeJeune, North Carolina                   $16,900,000 
                                  United States Military Academy, West Point, New York               $2,840,000 
National Security Agency          Fort Meade, Maryland                                                 $668,000 
Special Operations Command        Eglin Auxiliary Field 3, Florida                                   $7,310,000 
                                  Eglin Auxiliary Field 9, Florida                                   $2,400,000 
                                  Fort Campbell, Kentucky                                           $15,000,000 
                                  MacDill Air Force Base, Florida                                    $8,400,000 
                                  Naval Amphibious Base, Coronado, California                        $3,600,000 
                                  Stennis Space Center, Mississippi                                  $5,500,000 
                                      Total                                                        $690,016,000 
----------------------------------------------------------------------------------------------------------------

    (b) OUTSIDE THE UNITED STATES- Using amounts appropriated pursuant to the authorization of appropriations in section 2404(a)(2), the Secretary of Defense may acquire real property and carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in the following table:

Defense Agencies: Outside the United States
------------------------------------------------------------------------------------------
Agency                            Installation or location                         Amount 
------------------------------------------------------------------------------------------
Defense Logistics Agency          Lajes Field, Azores, Portugal                $7,700,000 
Defense Medical Facilities Office Naval Air Station, Sigonella, Italy          $5,300,000 
                                  Royal Air Force, Lakenheath, United Kingdom $10,800,000 
Defense Education Activity        Fort Buchanan, Puerto Rico                   $8,805,000 
                                  Naval Activities, Guam                      $13,100,000 
Special Operations Command        Naval Station, Roosevelt Roads, Puerto Rico  $9,600,000 
                                      Total                                   $55,305,000 
------------------------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using amounts appropriated pursuant to the authorization of appropriations in section 2404(a)(11)(A), the Secretary of Defense may improve existing military family housing units in an amount not to exceed $345,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of appropriations in section 2404(a)(9), the Secretary of Defense may carry out energy conservation projects under section 2865 of title 10, United States Code.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1998, for military construction, land acquisition, and military family housing functions of the Department of Defense (other than the military departments) in the total amount of $2,223,260,000 as follows:

      (1) For military construction projects inside the United States authorized by section 2401(a), $369,966,000.

      (2) For military construction projects outside the United States authorized by section 2401(a), $55,305,000.

      (3) For construction of the Ammunition Demilitarization Facility, Pine Bluff Arsenal, Arkansas, authorized by section 2401 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3040), as amended by section 2407 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 539), section 2408 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1982), and section 2406 of this Act, $16,500,000.

      (4) For construction of the Ammunition Demilitarization Facility, Umatilla Army Depot, Oregon, authorized by section 2401 of the Military Construction Authorization Act for Fiscal Year 1995, as amended by section 2407 of the Military Construction Authorization Act for Fiscal Year 1996, section 2408 of the Military Construction Authorization Act for Fiscal Year 1998, and section 2406 of this Act, $50,950,000.

      (5) For military construction projects at Portsmouth Naval Hospital, Virginia, hospital replacement, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 106 Stat. 1640), as amended by section 2407 of this Act, $17,954,000.

      (6) For unspecified minor construction projects under section 2805 of title 10, United States Code, $13,394,000.

      (7) For contingency construction projects of the Secretary of Defense under section 2804 of title 10, United States Code, $4,890,000.

      (8) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, $41,005,000.

      (9) For energy conservation projects authorized by section 2403, $46,950,000.

      (10) For base closure and realignment activities as authorized by the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), $1,630,902,000.

      (11) For military family housing functions:

        (A) For improvement of military family housing and facilities, $345,000.

        (B) For support of military housing (including functions described in section 2833 of title 10, United States Code), $36,899,000 of which not more than $31,139,000 may be obligated or expended for the leasing of military family housing units worldwide.

        (C) For credit to the Department of Defense Family Housing Improvement Fund established by section 2883(a)(1) of title 10, United States Code, $2,000,000.

    (b) LIMITATION OF TOTAL COST OF CONSTRUCTION PROJECTS- Notwithstanding the cost variation authorized by section 2853 of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 2401 of this Act may not exceed--

      (1) the total amount authorized to be appropriated under paragraphs (1) and (2) of subsection (a);

      (2) $162,050,000 (the balance of the amount authorized under section 2401(a) for the construction of the Ammunition Demilitarization Facility at Newport Army Depot, Indiana); and

      (3) $158,000,000 (the balance of the amount authorized under section 2401(a) for the construction of the Ammunition Demilitarization Facility at Aberdeen Proving Ground, Maryland).

    (c) ADJUSTMENT- The total amount authorized to be appropriated pursuant to paragraphs (1) through (11) of subsection (a) is the sum of the amounts authorized to be appropriated in such paragraphs, reduced by $63,800,000 (of which $50,500,000 represents savings from military construction for chemical demilitarization), which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 2406(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 2778) is amended--

      (1) by striking out ‘$3,379,703,000’ and inserting in lieu thereof ‘$3,374,703,000’; and

      (2) in paragraph (14), by striking out subparagraph (D).

    (b) CREDIT AND USE OF FUNDS- Section 2404 of that Act (110 Stat. 2777) is amended--

      (1) in subsection (a)--

        (A) by striking out ‘(1)’ before ‘Of’; and

        (B) by striking out paragraph (2); and

      (2) in subsection (b)--

        (A) by striking out ‘(1)’ before ‘The’;

        (B) by striking out ‘subsection (a)(1)’ and inserting in lieu thereof ‘subsection (a)’; and

        (C) by striking out paragraph (2).

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 1995 PROJECTS.

    The table in section 2401 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3040), as amended by section 2407 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 539) and section 2408 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1982), under the agency heading relating to Chemical Weapons and Munitions Destruction, is amended--

      (1) in the item relating to Pine Bluff Arsenal, Arkansas, by striking out ‘$134,000,000’ in the amount column and inserting in lieu thereof ‘$154,400,000’; and

      (2) in the item relating to Umatilla Army Depot, Oregon, by striking out ‘$187,000,000’ in the amount column and inserting in lieu thereof ‘$193,377,000’.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1990 PROJECT.

    (a) INCREASE- The table in section 2401(a) of the Military Construction Authorization Act for Fiscal Years 1990 and 1991 (division B of Public Law 100-189; 103 Stat. 1640) is amended in the item relating to Portsmouth Naval Hospital, Virginia, by striking out ‘$330,000,000’ and inserting in lieu thereof ‘$351,354,000’.

    (b) CONFORMING AMENDMENT- Section 2405(b)(2) of that Act (103 Stat. 1642) is amended by striking out ‘$321,500,000’ and inserting in lieu thereof ‘$342,854,000’.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

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

      Sec.2502.Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North Atlantic Treaty Organization Security Investment program as provided in section 2806 of title 10, United States Code, in an amount not to exceed the sum of the amount authorized to be appropriated for this purpose in section 2502 and the amount collected from the North Atlantic Treaty Organization as a result of construction previously financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1998, for contributions by the Secretary of Defense under section 2806 of title 10, United States Code, for the share of the United States of the cost of projects for the North Atlantic Treaty Organization Security Investment program authorized by section 2501, in the amount of $154,000,000.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

      Sec.2602.Modification of authority to carry out fiscal year 1998 project.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for fiscal years beginning after September 30, 1998, for the costs of acquisition, architectural and engineering services, and construction of facilities for the Guard and Reserve Forces, and for contributions therefor, under chapter 1803 of title 10, United States Code (including the cost of acquisition of land for those facilities), the following amounts:

      (1) For the Department of the Army--

        (A) for the Army National Guard of the United States, $142,403,000; and

        (B) for the Army Reserve, $102,119,000.

      (2) For the Department of the Navy, for the Naval and Marine Corps Reserve, $31,621,000.

      (3) For the Department of the Air Force--

        (A) for the Air National Guard of the United States, $169,801,000; and

        (B) for the Air Force Reserve, $34,371,000.

    (b) ADJUSTMENT- (1) The amount authorized to be appropriated pursuant to subsection (a)(1)(A) is reduced by $2,000,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

    (2) The amount authorized to be appropriated pursuant to subsection (a)(3)(A) is reduced by $4,000,000, which represents the combination of project savings in military construction resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 PROJECT.

    Section 2603 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1983) is amended to read as follows:

‘SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

    ‘With regard to the military construction project for the Army Reserve concerning construction of a reserve center and organizational maintenance shop at an appropriate site in, or in the vicinity of, Salt Lake City, Utah, to be carried out using funds appropriated pursuant to the authorization of appropriations in section 2601(a)(1)(B), the Secretary of the Army shall enter into an agreement with the State of Utah under which the State agrees to provide financial or in-kind contributions in connection with the project.’.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

      Sec.2702.Extension of authorizations of certain fiscal year 1996 projects.

      Sec.2703.Extension of authorization of fiscal year 1995 project.

      Sec.2704.Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE SPECIFIED BY LAW.

    (a) EXPIRATION OF AUTHORIZATIONS AFTER THREE YEARS- Except as provided in subsection (b), all authorizations contained in titles XXI through XXVI for military construction projects, land acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor) shall expire on the later of--

      (1) October 1, 2001; or

      (2) the date of enactment of an Act authorizing funds for military construction for fiscal year 2002.

    (b) EXCEPTION- Subsection (a) shall not apply to authorizations for military construction projects, land acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor), for which appropriated funds have been obligated before the later of--

      (1) October 1, 2001; or

      (2) the date of enactment of an Act authorizing funds for fiscal year 2002 for military construction projects, land acquisition, family housing projects and facilities, or contributions to the North Atlantic Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1996 PROJECTS.

    (a) EXTENSIONS- Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 541), authorizations for the projects set forth in the tables in subsection (b), as provided in section 2201, 2202, 2302, or 2601 of that Act, shall remain in effect until October 1, 1999, or the date of enactment of an Act authorizing funds for military construction for fiscal year 2000, whichever is later.

    (b) TABLES- The tables referred to in subsection (a) are as follows:

Navy: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------
State       Installation or location      Project                                      Amount 
----------------------------------------------------------------------------------------------
Puerto Rico Naval Station Roosevelt Roads Housing Office                             $710,000 
California  Camp Pendleton                Family Housing Construction (138 units) $20,000,000 
----------------------------------------------------------------------------------------------
Air Force: Extension of 1996 Project Authorization
--------------------------------------------------------------------
State Installation or location Project                       Amount 
--------------------------------------------------------------------
Texas Lackland Air Force Base  Family Housing (67 units) $6,200,000 
--------------------------------------------------------------------
Army National Guard: Extension of 1996 Project Authorizations
---------------------------------------------------------------------------------------------------------
State       Installation or location                     Project                                  Amount 
---------------------------------------------------------------------------------------------------------
Mississippi Camp Shelby                                  Multipurpose Range Complex (Phase I) $5,000,000 
Missouri    National Guard Training Site, Jefferson City Multipurpose Range                   $2,236,000 
---------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.

    (a) EXTENSION- Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3046), the authorization for the project set forth in the table in subsection (b), as provided in section 2201 of that Act and extended by section 2702 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 1985), shall remain in effect until October 1, 1999, or the date of enactment of an Act authorizing funds for military construction for fiscal year 2000, whichever is later.

    (b) TABLE- The table referred to in subsection (a) is as follows:

Navy: Extension of 1995 Project Authorization
--------------------------------------------------------------------------------------------------
State    Installation or location                 Project                                  Amount 
--------------------------------------------------------------------------------------------------
Maryland Indian Head Naval Surface Warfare Center Denitrification/Acid Mixing Facility $6,400,000 
--------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on the later of--

      (1) October 1, 1998; or

      (2) the date of the enactment of this Act.

TITLE XXVIII--GENERAL PROVISIONS

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

      Sec.2801.Architectural and engineering services and construction design.

      Sec.2802.Expansion of Army overseas family housing lease authority.

      Sec.2803.Definition of ancillary supporting facilities under alternative authority for acquisition and improvement of military housing.

      Sec.2804.Purchase of build-to-lease family housing at Eielson Air Force Base, Alaska.

      Sec.2805.Report relating to improvement of housing for unaccompanied members.

Subtitle B--Real Property and Facilities Administration

      Sec.2811.Exceptions to real property transaction reporting requirements for war and certain emergency and other operations.

      Sec.2812.Restoration of Department of Defense lands used by another Federal agency.

      Sec.2813.Outdoor recreation development on military installations for disabled veterans, military dependents with disabilities, and other persons with disabilities.

      Sec.2814.Report on leasing and other alternative uses of nonexcess military property.

      Sec.2815.Report on implementation of utility system conveyance authority.

Subtitle C--Defense Base Closure and Realignment

      Sec.2821.Applicability of property disposal laws to leases at installations to be closed or realigned under base closure laws.

      Sec.2822.Elimination of waiver authority regarding prohibition against certain conveyances of property at Naval Station, Long Beach, California.

      Sec.2823.Payment of stipulated penalties assessed under CERCLA in connection with McClellan Air Force Base, California.

Subtitle D--Land Conveyances

Part I--Army Conveyances

      Sec.2831.Modification of land conveyance, Army Reserve Center, Youngstown, Ohio.

      Sec.2832.Release of interests in real property, former Kennebec Arsenal, Augusta, Maine.

      Sec.2833.Release, waiver, or conveyance of interests in real property, former Redstone Army Arsenal property, Alabama.

      Sec.2834.Conveyance of utility systems, Lone Star Army Ammunition Plant, Texas.

      Sec.2835.Conveyance of water rights and related interests, Rocky Mountain Arsenal, Colorado, for purposes of acquisition of perpetual contracts for water.

      Sec.2836.Land conveyance, Army Reserve Center, Massena, New York.

      Sec.2837.Land conveyance, Army Reserve Center, Ogdensburg, New York.

      Sec.2838.Land conveyance, Army Reserve Center, Jamestown, Ohio.

      Sec.2839.Land conveyance, Army Reserve Center, Peoria, Illinois.

      Sec.2840.Land conveyance, Army Reserve Center, Bridgton, Maine.

      Sec.2841.Land conveyance, Fort Sheridan, Illinois.

      Sec.2842.Land conveyance, Skaneateles, New York.

      Sec.2843.Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana.

      Sec.2844.Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, Tennessee.

      Sec.2845.Land conveyance, Stewart Amy Sub-Post, New Windsor, New York.

Part II--Navy Conveyances

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

      Sec.2852.Land exchange, Naval Reserve Readiness Center, Portland, Maine.

      Sec.2853.Land conveyance, Naval and Marine Corps Reserve facility, Youngstown, Ohio.

      Sec.2854.Land conveyance, Naval Air Reserve Center, Minneapolis, Minnesota.

Part III--Air Force Conveyances

      Sec.2861.Modification of land conveyance, Eglin Air Force Base, Florida.

      Sec.2862.Modification of land conveyance, Finley Air Force Station, North Dakota.

      Sec.2863.Land conveyance, Lake Charles Air Force Station, Louisiana.

      Sec.2864.Land conveyance, Air Force Housing Facility, La Junta, Colorado.

Subtitle E--Other Matters

      Sec.2871.Modification of authority relating to Department of Defense Laboratory Revitalization Demonstration Program.

      Sec.2872.Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood, Texas, with civil aviation.

      Sec.2873.Modification of demonstration project for purchase of fire, security, police, public works, and utility services from local government agencies.

      Sec.2874.Designation of building containing Navy and Marine Corps Reserve Center, Augusta, Georgia.

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

SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND CONSTRUCTION DESIGN.

    (a) INCREASE IN THRESHOLD FOR NOTICE TO CONGRESS- Subsection (b) of section 2807 of title 10, United States Code, is amended by striking out ‘$300,000’ and inserting in lieu thereof ‘$500,000’.

    (b) AVAILABILITY OF APPROPRIATIONS- Subsection (d) of that section is amended by striking out ‘study, planning, design, architectural, and engineering services’ and inserting in lieu thereof ‘architectural and engineering services and construction design’.

SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.

    (a) ALTERNATIVE MAXIMUM UNIT AMOUNTS- Section 2828(e) of title 10, United States Code, is amended--

      (1) in paragraph (2), by inserting, ‘, and the Secretary of the Army may lease not more than 500 units of family housing in Italy,’ after ‘family housing in Italy’;

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

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

    ‘(3) In addition to the 450 units of family housing referred to in paragraph (1) for which the maximum lease amount is $25,000 per unit per year, the Secretary of the Army may lease not more than 800 units of family housing in Korea subject to that maximum lease amount.’.

    (b) CONFORMING AMENDMENT- Paragraph (4) of that section, as redesignated by subsection (a)(2) of this section, is amended by striking out ‘and (2)’ and inserting in lieu thereof ‘, (2), and (3)’.

SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING.

    Section 2871(1) of title 10, United States Code, is amended by inserting after ‘including’ the following: ‘facilities to provide or support elementary or secondary education,’.

SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT EIELSON AIR FORCE BASE, ALASKA.

    (a) AUTHORITY TO PURCHASE- The Secretary of the Air Force may purchase the entire interest of the developer in the military family housing project at Eielson Air Force Base, Alaska, described in subsection (b) if the Secretary determines that the purchase is in the best economic interests of the Air Force.

    (b) DESCRIPTION OF PROJECT- The military family housing project referred to in this section is the 366-unit military family housing project at Eielson Air Force Base that was constructed by the developer and is being leased by the Secretary under the authority of former subsection (g) of section 2828 of title 10, United States Code (now section 2835 of such title), as added by section 801 of the Military Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 782).

    (c) PURCHASE PRICE- The purchase price to be paid by the Secretary under this section for the interest of the developer in the military family housing project may not exceed an amount equal to the amount of the outstanding indebtedness of the developer to the lender for the project that would have remained at the time of the purchase under this section if the developer had paid down its indebtedness to the lender for the project in accordance with the original debt instruments for the project.

    (d) TIME FOR PURCHASE- (1) Subject to paragraph (2), the Secretary may elect to make the purchase authorized by subsection (a) at any time during or after the term of the lease for the military family housing project.

    (2) The Secretary may not make the purchase until 30 days after the date on which the Secretary notifies the congressional defense committees of the Secretary’s election to make the purchase under paragraph (1).

SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR UNACCOMPANIED MEMBERS.

    (a) REPORT REQUIRED- (1) Not later than April 1, 1999, the Secretary of Defense shall submit to Congress a report on--

      (A) the plans of each of the military departments to improve the condition, suitability, and availability of housing for members of the Armed Forces who are unaccompanied by dependents; and

      (B) the costs associated with the implementation of the plans.

    (2) The Secretary of Defense shall prepare the report in consultation with the Secretaries of the military departments.

    (b) ELEMENTS- The report under subsection (a) shall include the following:

      (1) The plans and programs of each of the military departments to improve housing on military installations for unaccompanied members of the Armed Forces, including an assessment of the requirement, a schedule to implement such plans and programs, and an explanation of the standards used to determine the adequacy, suitability, and availability of housing outside of military installations.

      (2) A justification for the initiative to build single occupancy rooms with a shared bath (commonly known as the ‘1 Plus 1 Initiative’), including--

        (A) a description of the manner in which the initiative is designed to enhance the quality of life for enlisted members and the retention of such members in adequate numbers; and

        (B) an assessment of the analysis and data used in the justification to implement the initiative.

      (3) The cost for each military department of implementing the initiative, including the amount of funds, by fiscal year, authorized and appropriated for military construction and real property maintenance obligated or expended on the improvement of military housing for unaccompanied members beginning on October 1, 1996, and the amount of funds required to be expended to ensure the suitability of such housing for unaccompanied members.

      (4) An explanation of the difference in cost between--

        (A) upgrading existing military housing to the standard proposed in the initiative; and

        (B) rehabilitating such housing within existing standards.

      (5) An assessment of the viability and utility of the authorities provided by subchapter IV of chapter 169 of title 10, United States Code, to contribute to the improvement of the condition, suitability, and availability of housing for unaccompanied members, especially members in junior grades.

      (6) The views of the Chief of Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air Force, the Commandant of the Marine Corps, the Commandant of the Coast Guard, and each of the senior enlisted members of the Armed Forces regarding the initiative referred to in paragraph (2) and regarding any alternatives to the initiative having the potential of enhancing the quality of life for unaccompanied members, improving the readiness of the Armed Forces, and improving the retention of enlisted members in adequate numbers.

Subtitle B--Real Property and Facilities Administration

SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND OTHER OPERATIONS.

    (a) EXCEPTIONS- Section 2662 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) EXCEPTIONS FOR TRANSACTIONS FOR WAR AND CERTAIN EMERGENCY AND OTHER OPERATIONS- (1) The reporting requirement set forth in subsection (a) shall not apply with respect to a real property transaction otherwise covered by that subsection, and the reporting requirement set forth in subsection (e) shall not apply with respect to a real property transaction otherwise covered by that subsection, if the Secretary concerned determines that the transaction is made as a result of any of the following:

      ‘(A) A declaration of war.

      ‘(B) A declaration of a national emergency by the President pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.).

      ‘(C) A declaration of an emergency or major disaster pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).

      ‘(D) The use of the militia or the armed forces after a proclamation to disperse under section 334 of this title.

      ‘(E) A contingency operation.

    ‘(2) The reporting requirement set forth in subsection (a) shall not apply with respect to a real property transaction otherwise covered by that subsection if the Secretary concerned determines that--

      ‘(A) an event listed in paragraph (1) is imminent; and

      ‘(B) the transaction is necessary for purposes of preparation for such event.

    ‘(3) Not later than 30 days after entering into a real property transaction covered by paragraph (1) or (2), the Secretary concerned shall submit to the committees named in subsection (a) a report on the transaction. The report shall set forth any facts or information which would otherwise have been submitted in a report on the transaction under subsection (a) or (e), as the case may be, but for the operation of paragraph (1) or (2).’.

    (b) STYLISTIC AMENDMENTS- That section is further amended--

      (1) in subsection (a), by inserting ‘GENERAL NOTICE AND WAIT REQUIREMENTS- ’ after ‘(a)’;

      (2) in subsection (b), by inserting ‘ANNUAL REPORTS ON CERTAIN MINOR TRANSACTIONS- ’ after ‘(b)’;

      (3) in subsection (c), by inserting ‘GEOGRAPHIC SCOPE; EXCEPTED PROJECTS- ’ after ‘(c)’;

      (4) in subsection (d), by inserting ‘STATEMENTS OF COMPLIANCE IN TRANSACTION INSTRUMENTS- ’ after ‘(d)’;

      (5) in subsection (e), by inserting ‘NOTICE AND WAIT REGARDING LEASES OF SPACE FOR DOD BY GSA- ’ after ‘(e)’; and

      (6) in subsection (f), by inserting ‘REPORTS ON TRANSACTIONS INVOLVING INTELLIGENCE COMPONENTS- ’ after ‘(f)’.

SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER FEDERAL AGENCY.

    (a) RESTORATION AS TERM OF AGREEMENT- Section 2691 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(c)(1) As a condition of any lease, permit, license, or other grant of access entered into by the Secretary of a military department with another Federal agency authorizing the agency to use lands under the control of the Secretary, the Secretary may require the agency to agree to remove any improvements and to take any other action necessary in the judgment of the Secretary to restore the land used by the agency to its condition before its use by the agency.

    ‘(2) In lieu of performing any removal or restoration work under paragraph (1), a Federal agency may elect, with the consent of the Secretary, to reimburse the Secretary for the costs incurred by the military department in performing such removal or restoration work.’.

    (b) CLERICAL AMENDMENTS- (1) The heading of such section is amended to read as follows:

‘Sec. 2691. Restoration of land used by permit or lease’.

    (2) The table of sections at the beginning of chapter 159 of title 10, United States Code, is amended by striking the item relating to section 2691 and inserting in lieu thereof the following new item:

      ‘2691. Restoration of land used by permit or lease.’.

SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY INSTALLATIONS FOR DISABLED VETERANS, MILITARY DEPENDENTS WITH DISABILITIES, AND OTHER PERSONS WITH DISABILITIES.

    (a) ACCESS ENHANCEMENT- Section 103 of the Sikes Act (16 U.S.C. 670c) is amended by adding at the end the following new subsections:

    ‘(b) ACCESS FOR DISABLED VETERANS, MILITARY DEPENDENTS WITH DISABILITIES, AND OTHER PERSONS WITH DISABILITIES- (1) In developing facilities and conducting programs for public outdoor recreation at military installations, consistent with the primary military mission of the installations, the Secretary of Defense shall ensure, to the extent reasonably practicable, that outdoor recreation opportunities (including fishing, hunting, trapping, wildlife viewing, boating, and camping) made available to the public also provide access for persons described in paragraph (2) when topographic, vegetative, and water resources allow access for such persons without substantial modification to the natural environment.

    ‘(2) Persons referred to in paragraph (1) are the following:

      ‘(A) Disabled veterans.

      ‘(B) Military dependents with disabilities.

      ‘(C) Other persons with disabilities, when access to a military installation for such persons and other civilians is not otherwise restricted.

    ‘(3) The Secretary of Defense shall carry out this subsection in consultation with the Secretary of Veterans Affairs, national service, military, and veterans organizations, and sporting organizations in the private sector that participate in outdoor recreation projects for persons described in paragraph (2).

    ‘(c) ACCEPTANCE OF DONATIONS- In connection with the facilities and programs for public outdoor recreation at military installations, in particular the requirement under subsection (b) to provide access for persons described in paragraph (2) of such subsection, the Secretary of Defense may accept--

      ‘(1) the voluntary services of individuals and organizations; and

      ‘(2) donations of property, whether real or personal.

    ‘(d) TREATMENT OF VOLUNTEERS- A volunteer under subsection (c) shall not be considered to be a Federal employee and shall not be subject to the provisions of law relating to Federal employment, including those relating to hours of work, rates of compensation, leave, unemployment compensation, and Federal employee benefits, except that--

      ‘(1) for the purposes of the tort claims provisions of chapter 171 of title 28, United States Code, the volunteer shall be considered to be a Federal employee; and

      ‘(2) for the purposes of subchapter I of chapter 81 of title 5, United States Code, relating to compensation to Federal employees for work injuries, the volunteer shall be considered to be an employee, as defined in section 8101(1)(B) of title 5, United States Code, and the provisions of such subchapter shall apply.’.

    (b) CONFORMING AMENDMENT- Such section is further amended by striking out ‘SEC. 103.’ and inserting in lieu thereof the following:

‘SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

    ‘(a) PROGRAM AUTHORIZED- ’.

SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF NONEXCESS MILITARY PROPERTY.

    (a) REPORT REQUIRED- Not later than March 15, 1999, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report regarding the authority of the military departments and Defense Agencies to lease to the private sector nonexcess real and personal property. The Secretary shall prepare the report in consultation with the Secretaries of the military departments and the Director of the Office of Management and Budget.

    (b) REQUIRED ELEMENTS OF REPORT- The report shall set forth the following:

      (1) The number and purpose of all leases entered into under sections 2667 and 2667a of title 10, United States Code, other than leases under section 2667(f) of that title, during the 5-year period ending on the date of the enactment of this Act.

      (2) The types and amounts of payments received under the leases specified in paragraph (1) and the costs, if any, foregone as a result of the leases.

      (3) An assessment of the positive and negative aspects of leasing real property and surplus capacity at military installations to the private sector, including the potential effect of the use of the leases on force protection and the military functions of the installations.

      (4) An assessment of the current efforts of the Department of Defense to identify for the private sector any surplus capacity at military installations that could be leased or otherwise used by the private sector.

      (5) An assessment of the proposal of the Secretary of the Air Force to reduce infrastructure costs at Brooks Air Force Base, Texas, using the authority provided in section 2667 of title 10, United States Code, and the proposal of the Secretary of the Navy regarding the potential for development of Ford Island as part of Naval Complex, Pearl Harbor, Hawaii.

      (6) An assessment (including an economic analysis) of the ability of the military departments and Defense Agencies to reduce the quantity of real property leased by them through the relocation of activities located in such leased space to property of a military installation, or another Federal agency, that is unutilized or underutilized, while also lowering operational and maintenance costs and minimizing the need for new construction.

    (c) ADDITIONAL ELEMENTS OF REPORT- In the event that the Secretary of Defense considers the authority under section 2667 or 2667a of title 10, United States Code, to be insufficient, the Secretary shall also include in the report--

      (1) a proposal for authority to conduct a pilot project based on the assessment made under subsection (b)(5) or for such general legislative authority as the Secretary considers appropriate to enhance the ability of the Department of Defense to utilize surplus capacity at military installations in order to improve military readiness, achieve cost savings with respect to such installations, or decrease the cost of operating such installations;

      (2) an estimate of the income that could accrue to the Department of Defense as a result of the implementation of enhanced authority proposed under paragraph (1) during the 5-year period beginning on the date of such implementation; and

      (3) an assessment of the extent to which any such income should be reserved for the use of the installations exercising such authority and of the extent to which installations would be likely to enter into such leases if they cannot retain such income.

SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM CONVEYANCE AUTHORITY.

    Not later than March 1, 1999, the Secretary of Defense, in consultation with the Secretaries of the military departments, shall submit to Congress a report containing--

      (1) the criteria to be used by the Secretary of a military department to select utility systems, and related improvements, easements, and rights-of-way, under the jurisdiction of the Secretary, for conveyance to a municipal, private, regional, district, or cooperative utility company or other entity under the authority of section 2688 of title 10, United States Code;

      (2) an assessment of the need to include, as part of the conveyance authority under such section, authority for the Secretary to convey real property associated with a utility system conveyed under such section; and

      (3) a description of the manner in which the Secretary will ensure that any conveyance under such section does not adversely affect the national security of the United States.

Subtitle C--Defense Base Closure and Realignment

SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES AT INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE CLOSURE LAWS.

    Section 2667(f)(1) of title 10, United States Code, is amended by inserting after ‘subsection (a)(3)’ the following: ‘or the Federal Property and Administrative Services Act of 1949 (to the extent such Act is inconsistent with this subsection)’.

SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL STATION, LONG BEACH, CALIFORNIA.

    Section 2826 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2001) is amended by striking out subsection (e).

SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN CONNECTION WITH MCCLELLAN AIR FORCE BASE, CALIFORNIA.

    (a) SOURCE OF PAYMENT- Notwithstanding subsection (b) of section 2906 of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of Defense may use amounts in the Department of Defense Base Closure Account 1990 established under subsection (a) of such section to pay stipulated penalties assessed under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) against McClellan Air Force Base, California.

    (b) AMOUNT OF PAYMENT- The amount expended under the authority of subsection (a) may not exceed $15,000.

Subtitle D--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN, OHIO.

    Section 2861(b) of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 573) is amended by striking out ‘retain’ and all that follows through the period at the end and inserting in lieu thereof ‘develop the parcel for educational purposes.’.

SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER KENNEBEC ARSENAL, AUGUSTA, MAINE.

    (a) AUTHORITY TO RELEASE- The Secretary of the Army may release, without consideration, all right, title, and interest of the United States in and to the real property described in subsection (b).

    (b) COVERED PROPERTY- The real property referred to in subsection (a) is the parcel of real property consisting of approximately 40 acres located in Augusta, Maine, and formerly known as the Kennebec Arsenal, which parcel was conveyed by the Secretary of War to the State of Maine under the provisions of the Act entitled ‘An Act Authorizing the Secretary of War to convey the Kennebec Arsenal property, situated in Augusta, Maine, to the State of Maine for public purposes’, approved March 3, 1905 (33 Stat. 1270), as amended by section 771 of the Department of Defense Appropriations Act, 1981 (Public Law 96-527; 94 Stat. 3093).

    (c) INSTRUMENT OF RELEASE- The Secretary of the Army shall execute and file in the appropriate office a deed of release, amended deed, or other appropriate instrument effectuating the release of interests authorized by this section.

SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL PROPERTY, FORMER REDSTONE ARMY ARSENAL PROPERTY, ALABAMA.

    (a) RELEASE AUTHORIZED- The Secretary of the Army may release, without consideration and to such extent as the Secretary considers appropriate to protect the interests of the United States, the reversionary interests of the United States in the real property described in subsection (b), which were retained by the United States when the property was conveyed to the Alabama Space Science Exhibit Commission, an agency of the State of Alabama. The release shall be executed in the manner provided in this section.

    (b) DESCRIPTION OF PROPERTY- The real property referred to in this section is the real property conveyed to the Alabama Space Science Exhibit Commission under the authority of the following provisions of law:

      (1) The first section of Public Law 90-276 (82 Stat. 68).

      (2) Section 813 of the Military Construction Authorization Act, 1980 (Public Law 96-125; 93 Stat. 952).

      (3) Section 813 of the Military Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 790).

    (c) RELEASE, WAIVER, OR CONVEYANCE OF OTHER RIGHTS, TERMS, AND CONDITIONS- As part of the release under subsection (a), the Secretary may release, waive, or convey, without consideration and to such extent as the Secretary considers appropriate to protect the interests of the United States--

      (1) any and all other rights retained by the United States in and to the real property described in subsection (b) when the property was conveyed to the Alabama Space Science Exhibit Commission; and

      (2) any and all terms and conditions and restrictions on the use of the real property imposed as part of the conveyances described in subsection (b).

    (d) CONDITIONS ON RELEASE, WAIVER, OR CONVEYANCE- (1) The Secretary may execute the release under subsection (a) or a release, waiver, or conveyance under subsection (c) only after--

      (A) the Secretary approves of the master plan prepared by the Alabama Space Science Exhibit Commission, as such plan may exist or be revised from time to time, for development of the real property described in subsection (b); and

      (B) the installation commander at Redstone Arsenal, Alabama, certifies to the Secretary that the release, waiver, or conveyance is consistent with the master plan.

    (2) A new facility or structure may not be constructed on the real property described in subsection (b) unless the facility or structure is included in the master plan, which has been approved and certified as provided in paragraph (1).

    (e) INSTRUMENT OF RELEASE, WAIVER, OR CONVEYANCE- In making a release, waiver, or conveyance authorized by this section, the Secretary shall execute and file in the appropriate office or offices a deed of release, amended deed, or other appropriate instrument effectuating the release, waiver, or conveyance.

    (f) EFFECT OF RELEASE- Except as provided in subsection (g), upon release of any reversionary interest under this section, the right, title, and interest of the Alabama Space Science Exhibit Commission in and to the real property described in subsection (b) shall, to the extent of the release, no longer be subject to the conditions prescribed in the provisions of law specified in such subsection. Except as provided in subsection (g), the Alabama Space Science Exhibit Commission may use the real property for any such purpose or purposes as it considers appropriate consistent with the master plan approved and certified as provided in subsection (d), and the real property may be conveyed by the Alabama Space Science Exhibit Commission without restriction and unencumbered by any claims or rights of the United States with respect to the property, subject to such rights, terms, and conditions of the United States previously imposed on the real property and not released, waived, or conveyed by the Secretary under subsection (c).

    (g) EXCEPTIONS- (1) Conveyance of the drainage and utility easement reserved to the United States pursuant to section 813(b)(3) of the Military Construction Authorization Act, 1984 (Public Law 98-115; 97 Stat. 791), is not authorized under this section.

    (2) In no event may title to any portion of the real property described in subsection (b) be conveyed by the Alabama Space Science Exhibit Commission or any future deed holder of the real property to any person other than an agency, instrumentality, political subdivision, municipal corporation, or public corporation of the State of Alabama. Any deed conveying title to any portion of the real property described in subsection (b) shall restrict the further use of the conveyed property to purposes and uses consistent with the master plan approved and certified as provided in subsection (d), unless otherwise approved by the Secretary.

    (3) Paragraph (2) does not prevent the Alabama Space Science Exhibit Commission or any future deed holder of the real property described in subsection (b) from giving a mortgage with respect to any portion of the real property to any person, except that any such mortgage shall provide that the further use of the real property shall be restricted to purposes and uses consistent with the master plan approved and certified as provided in subsection (d), unless otherwise approved by the Secretary.

SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY AMMUNITION PLANT, TEXAS.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey all right, title, and interest of the United States in and to any utility system, or part thereof, including any real property associated with such system, at the Lone Star Army Ammunition Plant, Texas, to the redevelopment authority for the Red River Army Depot, Texas, in conjunction with the disposal of property at the Depot under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).

    (b) CONSIDERATION- As consideration for the conveyance under subsection (a), the redevelopment authority shall pay to the United States an amount equal to the fair market value of the conveyed utility system and any real property conveyed as part of the conveyance, as determined by an independent appraisal satisfactory to the Secretary and paid for by the redevelopment authority.

    (c) RULE OF CONSTRUCTION- Nothing in subsection (a) may be construed to prohibit or otherwise limit the Secretary from conveying any utility system referred to in that subsection under any other provision of law, including section 2688 of title 10, United States Code.

    (d) UTILITY SYSTEM DEFINED- In this section, the term ‘utility system’ has the meaning given that term in section 2688(g) of title 10, United States Code.

SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, ROCKY MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF ACQUISITION OF PERPETUAL CONTRACTS FOR WATER.

    (a) CONVEYANCE AUTHORIZED- Subject to subsection (c), the Secretary of the Army may convey any and all interest of the United States in the water rights and related rights at Rocky Mountain Arsenal, Colorado, described in subsection (b) to the City and County of Denver, Colorado, acting through its Board of Water Commissioners.

    (b) COVERED WATER RIGHTS AND RELATED RIGHTS- The water rights and related rights authorized to be conveyed under subsection (a) are the following:

      (1) Any and all interest in 300 acre rights to water from Antero Reservoir as set forth in Antero Reservoir Contract No. 382 dated August 22, 1923, for 160 acre rights; Antero Reservoir Contract No. 383 dated August 22, 1923, for 50 acre rights; Antero Reservoir Contract No. 384 dated October 30, 1923, for 40 acre rights; Antero Reservoir Contract No. 387 dated March 3, 1923, for 50 acre rights; and Supplemental Contract No. 382-383-384-387 dated July 24, 1932, defining the amount of water to be delivered under the 300 acre rights in the prior contracts as 220 acre feet.

      (2) Any and all interest in the 305 acre rights of water from the High Line Canal, diverted at its headgate on the South Platte River and delivered to the Fitzsimons Army Medical Center and currently subject to cost assessments pursuant to Denver Water Department contract #001990.

      (3) Any and all interest in the 2,603.55 acre rights of water from the High Line Canal, diverted at its headgate on the South Platte River and delivered to the Rocky Mountain Arsenal in Adams County, Colorado, and currently subject to cost assessments by the Denver Water Department, including 680 acre rights transferred from Lowry Field to the Rocky Mountain Arsenal by the October 5, 1943, agreement between the City and County of Denver, acting by and through its Board of Water Commissioners, and the United States of America.

      (4) Any and all interest in 4,058.34 acre rights of water not currently subject to cost assessments by the Denver Water Department.

      (5) A new easement for the placement of water lines approximately 50 feet wide inside the Southern boundary of Rocky Mountain Arsenal and across the Reserve Center along the northern side of 56th Avenue.

      (6) A permanent easement for utilities where Denver has an existing temporary easement near the southern and western boundaries of Rocky Mountain Arsenal.

    (c) CONSIDERATION- (1) The Secretary of the Army may make the conveyance under subsection (a) only if the Board of Water Commissioners, on behalf of the City and County of Denver, Colorado--

      (A) enters into a permanent contract with the Secretary of the Army for purposes of ensuring the delivery of nonpotable water and potable water to Rocky Mountain Arsenal; and

      (B) enters into a permanent contract with the Secretary of the Interior for purposes of ensuring the delivery of nonpotable water and potable water to Rocky Mountain Arsenal National Wildlife Refuge, Colorado.

    (2) Section 2809(e) of title 10, United States Code, shall not operate to limit the term of the contract entered into under paragraph (1)(A).

    (d) REQUIREMENT RELATING TO CONVEYANCE- The Secretary of the Army may not make the conveyance authorized by subsection (a) until the execution of the proposed agreement provided for under subsection (c) between the City and County of Denver, Colorado, acting through its Board of Water Commissioners, the South Adams County Water and Sanitation District, the United States Fish and Wildlife Service, and the Army.

    (e) ADDITIONAL TERMS AND CONDITIONS- The Secretary of the Army may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Village of Massena, New York (in this section referred to as the ‘Village’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of the Army Reserve Center in Massena, New York, for the purpose of permitting the Village to develop the parcel for public benefit, including the development of municipal office space.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Village.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the City of Ogdensburg, New York (in this section referred to as the ‘City’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of the Army Reserve Center in Ogdensburg, New York, for the purpose of permitting the City to develop the parcel for public benefit, including the development of municipal office space.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Greeneview Local School District of Jamestown, Ohio, all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, that is located at 5693 Plymouth Road in Jamestown, Ohio, and contains an Army Reserve Center, for the purpose of permitting the Greeneview Local School District to retain and use the conveyed property for educational purposes.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Greeneview Local School District.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Peoria School District #150 of Peoria, Illinois (in this section referred to as the ‘School District’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of the Army Reserve Center located at 1429 Northmoor Road in Peoria, Illinois, for the purpose of permitting the School District to develop the parcel for educational and transportation purposes.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the School District.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Town of Bridgton, Maine (in this section referred to as the ‘Town’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 3.65 acres and containing the Army Reserve Center in Bridgton, Maine, for the purpose of permitting the Town to develop the parcel for public benefit, including the development of municipal office space.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Town.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey to the City of Lake Forest, Illinois (in this section referred to as the ‘City’), all right, title, and interest, of the United States in and to all or some portion of the parcel of real property, including improvements thereon, at the former Fort Sheridan, Illinois, consisting of approximately 14 acres and known as the northern Army Reserve enclave area.

    (b) CONSIDERATION- As consideration for the conveyance under subsection (a), the City shall pay to the United States an amount equal to not less than the fair market value of the real property to be conveyed, as determined by the Secretary.

    (c) USE OF PROCEEDS- In such amounts as are provided in advance in appropriations Acts, the Secretary may use the funds paid by the City under subsection (b) to provide for the construction of replacement facilities and for the relocation costs for Reserve units and activities affected by the conveyance.

    (d) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.

    (e) NOTICE AND WAIT- The Secretary may not make the conveyance authorized by subsection (a) until 21 days after the date on which the Secretary submits to the congressional defense committees a certification that the relocation of the Reserve units and activities affected by the conveyance is consistent with an approved master plan for the consolidation of Reserve activities in, or in the vicinity of, Chicago, Illinois.

    (f) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Town of Skaneateles, New York (in this section referred to as the ‘Town’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 147.10 acres in Skaneateles, New York, and commonly known as the ‘Federal Farm’, for the purpose of permitting the Town to develop the parcel for public benefit, including for recreational purposes.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Town.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interest of the United States.

SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, INDIANA.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey to the Indiana Army Ammunition Plant Reuse Authority (in this section referred to as the ‘Reuse Authority’) all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4,660 acres located at the Indiana Army Ammunition Plant, Charlestown, Indiana, for the purpose of developing the parcel as an industrial park to replace all or part of the economic activity lost at the inactivated plant.

    (b) CONSIDERATION- Except as provided in subsection (d), as consideration for the conveyance under subsection (a), the Reuse Authority shall pay to the Secretary an amount equal to the fair market value of the conveyed property as of the time of the conveyance, determined by the Secretary in accordance with Federal appraisal standards and procedures.

    (c) TIME FOR PAYMENT- The consideration required under subsection (b) shall be paid by the Reuse Authority at the end of the 10-year period beginning on the date on which the conveyance under subsection (a) is completed.

    (d) EFFECT OF RECONVEYANCE OR LEASE- (1) If, during the 10-year period specified in subsection (c), the Reuse Authority reconveys all or any part of the property conveyed under subsection (a), the Reuse Authority shall pay to the United States an amount equal to the fair market value of the reconveyed property as of the time of the reconveyance, excluding the value of any improvements made to the property by the Reuse Authority, determined by the Secretary in accordance with Federal appraisal standards and procedures.

    (2) The Secretary may treat a lease of the property within such 10-year period as a reconveyance if the Secretary determines that the lease is being used to avoid application of paragraph (1).

    (e) DEPOSIT OF PROCEEDS- The Secretary shall deposit any proceeds received under subsection (b) or (d) in the special account established pursuant to section 204(h)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).

    (f) ADMINISTRATIVE EXPENSES- In connection with the conveyance under subsection (a), the Secretary may accept amounts provided by the Reuse Authority or other persons to cover administrative expenses incurred by the Secretary in making the conveyance. Amounts received under this subsection for administrative expenses shall be credited to the appropriation, fund, or account from which the expenses were paid. Amounts so credited shall be merged with funds in such appropriation, fund, or account and shall be available for the same purposes and subject to the same limitations as the funds with which merged.

    (g) DESCRIPTION OF PROPERTY- The property to be conveyed under subsection (a) includes the administrative area of the Indiana Army Ammunition Plant as well as open space in the southern end of the plant. The exact acreage and legal description of the property to be conveyed shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Reuse Authority.

    (h) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

    (i) ADDITIONAL CONVEYANCE FOR RECREATIONAL PURPOSES- Section 2858(a) of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 571), as amended by section 2838 of the Military Construction Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2006), is further amended by adding at the end the following new paragraph:

    ‘(3) The Secretary may also convey to the State, without consideration, another parcel of real property at the Indiana Army Ammunition Plant consisting of approximately 2,000 acres of additional riverfront property in order to connect the parcel conveyed under paragraph (2) with the parcels of Charlestown State Park conveyed to the State under paragraph (1) and title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).’.

SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT, CHATTANOOGA, TENNESSEE.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey to Hamilton County, Tennessee (in this section referred to as the ‘County’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 1,033 acres located at the Volunteer Army Ammunition Plant, Chattanooga, Tennessee, for the purpose of developing the parcel as an industrial park to replace all or part of the economic activity lost at the inactivated plant.

    (b) CONSIDERATION- Except as provided in subsection (d), as consideration for the conveyance under subsection (a), the County shall pay to the Secretary an amount equal to the fair market value of the conveyed property as of the time of the conveyance, determined by the Secretary in accordance with Federal appraisal standards and procedures.

    (c) TIME FOR PAYMENT- The consideration required under subsection (b) shall be paid by the County at the end of the 10-year period beginning on the date on which the conveyance under subsection (a) is completed.

    (d) EFFECT OF RECONVEYANCE OR LEASE- (1) If the County reconveys all or any part of the conveyed property during the 10-year period specified in subsection (c), the County shall pay to the United States an amount equal to the fair market value of the reconveyed property as of the time of the reconveyance, excluding the value of any improvements made to the property by the County, determined by the Secretary in accordance with Federal appraisal standards and procedures.

    (2) The Secretary may treat a lease of the property within such 10-year period as a reconveyance if the Secretary determines that the lease is being used to avoid application of paragraph (1).

    (e) DEPOSIT OF PROCEEDS- The Secretary shall deposit any proceeds received under subsection (b) or (d) in the special account established pursuant to section 204(h)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).

    (f) EFFECT ON EXISTING LEASES- The conveyance of the real property under subsection (a) shall not affect the terms or length of any contract entered into by the Secretary before the date of the enactment of this Act with regard to the property to be conveyed.

    (g) ADMINISTRATIVE EXPENSES- In connection with the conveyance under subsection (a), the Secretary may accept amounts provided by the County or other persons to cover administrative expenses incurred by the Secretary in making the conveyance. Amounts received under this subsection for administrative expenses shall be credited to the appropriation, fund, or account from which the expenses were paid. Amounts so credited shall be merged with funds in such appropriation, fund, or account and shall be available for the same purposes and subject to the same limitations as the funds with which merged.

    (h) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the County.

    (i) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW WINDSOR, NEW YORK.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Army may convey, without consideration, to the Town of New Windsor, New York (in this section referred to as the ‘Town’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 291 acres at the Stewart Army Sub-Post in New Windsor, New York, for the purpose of permitting the Town to develop the parcel for economic purposes.

    (b) EXCLUSION- The real property to be conveyed under subsection (a) does not include any portion of the approximately 89.2-acre parcel at Stewart Army Sub-Post that is proposed for transfer to the jurisdiction and control of the Marine Corps or the approximately 22-acre parcel at Stewart Army Sub-Post that is proposed for transfer to the jurisdiction and control of the Army Reserve.

    (c) CONDITIONS OF CONVEYANCE- The conveyance authorized by subsection (a) may only be made subject to the following conditions:

      (1) The Town must agree to provide connections to the local wastewater and sewage treatment system for all existing and future improvements to the parcels of real property referred to in subsection (b).

      (2) The Town must agree to provide wastewater and sewage treatment service to such parcels at a rate established by the appropriate Federal or State regulatory authority.

    (d) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Town.

    (e) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

PART II--NAVY CONVEYANCES

SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON, CALIFORNIA.

    (a) EASEMENT AUTHORIZED- The Secretary of the Navy may grant an easement, in perpetuity, to the Foothill/Eastern Transportation Corridor Agency (in this section referred to as the ‘Agency’) over a parcel of real property at Marine Corps Base, Camp Pendleton, California, consisting of approximately 340 acres to permit the recipient of the easement to construct, operate, and maintain a restricted access highway. The area covered by the easement shall include slopes and all necessary incidents thereto.

    (b) CONSIDERATION- As consideration for the grant of an easement under subsection (a), the Agency shall pay to the United States an amount equal to the fair market value of the easement, as determined by an independent appraisal satisfactory to the Secretary and paid for by the Agency.

    (c) USE OF PROCEEDS- In such amounts as are provided in advance in appropriation Acts, the Secretary shall use the funds paid by the Agency under subsection (b) to carry out one or more of the following programs at Camp Pendleton:

      (1) Enhancement of access from Red, White, and Green Beaches under Interstate Route 5 and railroad crossings to inland areas.

      (2) Improvement of roads and bridge structures in the range and training area.

      (3) Realignment of Basilone Road.

    (d) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the easement to be granted under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Agency.

    (e) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the grant of an easement under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, PORTLAND, MAINE.

    (a) CONVEYANCE AUTHORIZED- (1) The Secretary of the Navy may convey to the Gulf of Maine Aquarium Development Corporation, Portland, Maine (in this section referred to as the ‘Corporation’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 3.72 acres in Portland, Maine, and containing the Naval Reserve Readiness Center, Portland, Maine, for the purpose of permitting the Corporation to use the parcel for economic development and as the site for an aquarium and marine research facility.

    (2) As part of the conveyance under paragraph (1), the Secretary shall also convey to the Corporation any interest of the United States in the submerged lands adjacent to the real property conveyed under that paragraph that is appurtenant to the real property conveyed under that paragraph.

    (b) PROVISION OF REPLACEMENT FACILITIES- As consideration for the conveyance authorized by subsection (a), the Corporation shall design and construct such facilities as the Secretary determines appropriate for the Naval Reserve to replace the facilities conveyed under that subsection.

    (c) LOCATION OF REPLACEMENT FACILITIES- (1) To provide a location for the replacement facilities required under subsection (b), the Corporation shall--

      (A) convey to the United States all right, title, and interest in and to a parcel of real property determined by the Secretary to be an appropriate location for such facilities; or

      (B) design and construct such facilities on such parcel of real property under the jurisdiction of the Secretary as the Secretary shall specify.

    (2) The Secretary shall select the alternative provided under paragraph (1) to be used by the Corporation.

    (d) NOTICE AND WAIT- The Secretary may not make the conveyance authorized by subsection (a) until 21 days after the date on which the Secretary submits to the congressional defense committees a report specifying the terms and conditions under which the conveyance will occur.

    (e) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a)(1), of any interest to be conveyed under subsection (a)(2), and of the real property, if any, to be conveyed under subsection (c)(1)(A) shall be determined by surveys satisfactory to the Secretary. The cost of the surveys shall be borne by the Corporation.

    (f) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE FACILITY, YOUNGSTOWN, OHIO.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Navy may convey, without consideration, to the City of Youngstown, Ohio (in this section referred to as the ‘City’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, that is located at 315 East Laclede Avenue in Youngstown, Ohio, and is the location of a Naval and Marine Corps Reserve facility, for the purpose of permitting the City to use the parcel for educational purposes.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, MINNEAPOLIS, MINNESOTA.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Navy may convey to the Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota (in this section referred to as the ‘Commission’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 32 acres located in Minneapolis, Minnesota, and comprising the Naval Air Reserve Center, Minneapolis, Minnesota, for the purpose of facilitating the expansion of the Minneapolis-St. Paul International Airport.

    (b) ALTERNATIVE LEASE AUTHORITY- In lieu of the conveyance authorized by subsection (a), the Secretary may elect to lease the property referred to in that subsection to the Commission if the Secretary determines that a lease of the property would better serve the interests of the United States.

    (c) PROVISION OF REPLACEMENT FACILITIES- As consideration for the conveyance under subsection (a), or the lease under subsection (b), the Commission shall--

      (1) provide for such facilities as the Secretary considers appropriate for the Naval Reserve to replace the facilities conveyed or leased under this section;

      (2) assume the costs of designing and constructing such replacement facilities, as may be acceptable to the Secretary; and

      (3) assume any costs incurred by the Secretary in relocating the operations of the Naval Air Reserve Center to such replacement facilities.

    (d) LOCATION OF REPLACEMENT FACILITIES- To provide a location for the replacement facilities required under subsection (c), the Commission may--

      (1) convey to the United States all right, title, and interest in and to a parcel of real property determined by the Secretary to be an appropriate location for such facilities, if the Secretary elects to make the conveyance authorized by subsection (a); or

      (2) lease to the United States a parcel of real property determined by the Secretary to be an appropriate location for such facilities, if the Secretary elects to make the lease authorized by subsection (b).

    (e) AVAILABILITY OF REPLACEMENT FACILITIES- The Secretary may not make the conveyance authorized by subsection (a), or enter into the lease authorized by subsection (b), until the replacement facilities required by subsection (c) are available for the relocation of the operations of the Naval Air Reserve Center.

    (f) AGREEMENT RELATING TO CONVEYANCE- (1) If the Secretary determines to proceed with the conveyance authorized by subsection (a), or the lease authorized by subsection (b), the Secretary and the Commission shall enter into an agreement specifying the terms and conditions under which the conveyance or lease will occur.

    (2) The Secretary may not enter into the agreement under paragraph (1) until 21 days after the date on which the Secretary submits to the congressional defense committees a report specifying the terms and conditions under which the conveyance or lease will occur.

    (g) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed to the Commission under subsection (a), or leased to the Commission under subsection (b), and the exact acreage and legal description of the real property to be conveyed or leased under subsection (d) to the United States, shall be determined by surveys satisfactory to the Secretary. The cost of the surveys shall be borne by the Commission.

    (h) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a), or the lease under subsection (b), as the Secretary considers appropriate to protect the interests of the United States.

PART III--AIR FORCE CONVEYANCES

SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE, FLORIDA.

    Section 809(c) of the Military Construction Authorization Act, 1979 (Public Law 95-356; 92 Stat. 587), as amended by section 2826 of the Military Construction Authorization Act, 1989 (division B of Public Law 100-456; 102 Stat. 2123), is further amended by striking out ‘and a third parcel containing forty-two acres’ and inserting in lieu thereof ‘, a third parcel containing forty-two acres, a fourth parcel containing approximately 3.43 acres, and a fifth parcel containing approximately 0.56 acres’.

SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE STATION, NORTH DAKOTA.

    Section 2835 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 3063) is amended--

      (1) by striking out subsections (a), (b), and (c) and inserting in lieu thereof the following new subsections:

    ‘(a) CONVEYANCE AUTHORIZED- The Secretary of the Air Force may convey, without consideration, to the City of Finley, North Dakota (in this section referred to as the ‘City’), all right, title, and interest of the United States in and to the parcels of real property, including improvements thereon, in the vicinity of Finley, North Dakota, described in subsection (b), for the purpose of permitting the City to use the parcels for economic development.

    ‘(b) COVERED PARCELS- The parcels of real property authorized for conveyance under subsection (a) are as follows:

      ‘(1) A parcel of approximately 14 acres that served as the support complex of the Finley Air Force Station and Radar Site.

      ‘(2) A parcel of approximately 57 acres known as the Finley Air Force Station Complex.

      ‘(3) A parcel of approximately 6 acres that includes a well site and wastewater treatment system.

    ‘(c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.’; and

      (2) in subsections (d) and (e), by striking out ‘subsection (a)(1)’ and inserting in lieu thereof ‘subsection (a)’.

SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Air Force may convey, without consideration, to McNeese State University of Louisiana (in this section referred to as the ‘University’), all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 4.38 acres at Lake Charles Air Force Station, Louisiana, for the purpose of permitting the University to use the parcel for educational purposes and agricultural research.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the University.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA, COLORADO.

    (a) CONVEYANCE AUTHORIZED- The Secretary of the Air Force may convey, without consideration, to the City of La Junta, Colorado (in this section referred to as the ‘City’), all right, title, and interest of the United States in and to the unused Air Force housing facility, consisting of approximately 28 acres and improvements thereon, located within the southern-most boundary of the City, for the purpose of permitting the City to develop the conveyed property for housing and educational purposes.

    (b) DESCRIPTION OF PROPERTY- The exact acreage and legal description of the property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.

    (c) REVERSIONARY INTEREST- During the 5-year period beginning on the date the Secretary makes the conveyance authorized under subsection (a), if the Secretary determines that the conveyed real property is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United States, and the United States shall have the right of immediate entry onto the property. Any determination of the Secretary under this subsection shall be made on the record after an opportunity for a hearing.

    (d) ADDITIONAL TERMS AND CONDITIONS- The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

Subtitle E--Other Matters

SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.

    (a) PROGRAM REQUIREMENTS- Subsection (c) of section 2892 of the Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 590; 10 U.S.C. 2805 note) is amended to read as follows:

    ‘(c) PROGRAM REQUIREMENTS- (1) Not later than 30 days before commencing the program, the Secretary shall establish procedures for the review and approval of requests from Department of Defense laboratories for construction under the program.

    ‘(2) The laboratories at which construction may be carried out under the program may not include Department of Defense laboratories that are contractor-owned.’.

    (b) REPORT- Subsection (d) of that section is amended to read as follows:

    ‘(d) REPORT- Not later than February 1, 2003, the Secretary shall submit to Congress a report on the program. The report shall include the Secretary’s conclusions and recommendation regarding the desirability of making the authority set forth under subsection (b) permanent.’.

    (c) EXTENSION- Subsection (g) of that section is amended by striking out ‘September 30, 1998’ and inserting in lieu thereof ‘September 30, 2003’.

SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, FORT HOOD, TEXAS, WITH CIVIL AVIATION.

    Section 319 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3855) is repealed.

SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL GOVERNMENT AGENCIES.

    Section 816 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820), as amended by section 352 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2491), is further amended--

      (1) in subsection (a), by striking out ‘, beginning October 1, 1994,’;

      (2) in subsection (b), by striking out ‘and 1998’ and inserting in lieu thereof ‘through 2000’; and

      (3) by adding at the end the following new subsection:

    ‘(c) DURATION OF PROJECT- The authority to purchase or receive services under the demonstration project shall expire on September 30, 2000.’.

SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE CORPS RESERVE CENTER, AUGUSTA, GEORGIA.

    The building containing the Navy and Marine Corps Reserve Center located at 2869 Central Avenue in Augusta, Georgia, shall be known and designated as the ‘A. James Dyess Building’.

TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

      Sec.2901.Short title.

      Sec.2902.Withdrawal and reservation.

      Sec.2903.Map and legal description.

      Sec.2904.Agency agreement.

      Sec.2905.Right-of-way grants.

      Sec.2906.Indian sacred sites.

      Sec.2907.Actions concerning ranching operations in withdrawn area.

      Sec.2908.Management of withdrawn and reserved lands.

      Sec.2909.Integrated natural resource management plan.

      Sec.2910.Memorandum of understanding.

      Sec.2911.Maintenance of roads.

      Sec.2912.Management of withdrawn and acquired mineral resources.

      Sec.2913.Hunting, fishing, and trapping.

      Sec.2914.Water rights.

      Sec.2915.Duration of withdrawal.

      Sec.2916.Environmental remediation of relinquished withdrawn lands or upon termination of withdrawal.

      Sec.2917.Delegation of authority.

      Sec.2918.Hold harmless.

      Sec.2919.Authorization of appropriations.

SEC. 2901. SHORT TITLE.

    This title may be cited as the ‘Juniper Butte Range Withdrawal Act’.

SEC. 2902. WITHDRAWAL AND RESERVATION.

    (a) WITHDRAWAL- Subject to valid existing rights and except as otherwise provided in this title, the lands at the Juniper Butte Range, Idaho, referred to in subsection (c), are withdrawn from all forms of appropriation under the public land laws, including the mining laws and the mineral and geothermal leasing laws but not the Act of July 31, 1947 (commonly known as the Materials Act of 1947; 30 U.S.C. 601 et seq.).

    (b) RESERVED USES- The lands withdrawn under subsection (a) are reserved for use by the Secretary of the Air Force for--

      (1) a high hazard training area;

      (2) dropping non-explosive training ordnance with spotting charges;

      (3) electronic warfare and tactical maneuvering and air support; and

      (4) other defense-related purposes consistent with the purposes specified in paragraphs (1), (2), and (3), including continued natural resource management and environmental remediation in accordance with section 2916.

    (c) SITE DEVELOPMENT PLANS- (1) Site development plans shall be prepared before construction.

    (2) Site development plans shall be incorporated in the integrated natural resource management plan developed under section 2909.

    (3) Except in the case of any minimal improvements, development on the withdrawn lands of any facilities beyond those proposed and analyzed in the Environmental Impact Statement concerning Enhanced Training in Idaho, prepared by the Secretary of the Air Force, the Record of Decision dated March 10, 1998, concerning Enhanced Training in Idaho, prepared by the Secretary of the Air Force, and the site development plans shall be contingent upon review and approval of the Idaho State Director of the Bureau of Land Management.

    (d) GENERAL DESCRIPTION- (1) The public lands withdrawn and reserved by this section comprise approximately 11,300 acres of public land in Owhyee County, Idaho, as generally depicted on the map entitled ‘Juniper Butte Range Withdrawal--Proposed’, dated June 1998, that will be filed in accordance with section 2903.

    (2) The withdrawal is for an approximately 10,600-acre tactical training range, a 640-acre no-drop target site, four 5-acre no-drop target sites and nine 1-acre electronic threat emitter sites.

SEC. 2903. MAP AND LEGAL DESCRIPTION.

    (a) IN GENERAL- As soon as practicable after the date of the enactment of this Act, the Secretary of the Interior shall--

      (1) publish in the Federal Register a notice containing the legal description of the lands withdrawn and reserved by this title; and

      (2) file a map or maps and the legal description of the lands withdrawn and reserved by this title with the Committee on Energy and Natural Resources of the Senate and with the Committee on Resources of the House of Representatives.

    (b) INCORPORATION BY REFERENCE- Such maps and legal description shall have the same force and effect as if included in this title.

    (c) CORRECTION OF ERRORS- The Secretary of the Interior may correct clerical and typographical errors in such map or maps and legal description.

    (d) AVAILABILITY- Copies of such map or maps and the legal description shall be available for public inspection in the following offices:

      (1) The office of the Idaho State Director of the Bureau of Land Management.

      (2) The offices of the managers of the Lower Snake River District, Bureau Field Office and Jarbidge Field Office of the Bureau of Land Management.

      (3) The Office of the commander of Mountain Home Air Force Base, Idaho.

    (e) UTILIZATION OF AIR FORCE DESCRIPTIONS AND MAPS- To the extent practicable, the Secretary of the Interior shall adopt the legal description and maps prepared by the Secretary of the Air Force in support of this title.

    (f) REIMBURSEMENT OF COSTS- The Secretary of the Air Force shall reimburse the Secretary of the Interior for the costs incurred by the Department of the Interior in implementing this section.

SEC. 2904. AGENCY AGREEMENT.

    (a) FINDINGS- Congress makes the following findings:

      (1) The Bureau of Land Management and the Air Force have agreed upon additional mitigation measures associated with this land withdrawal as specified in the ‘ENHANCED TRAINING IN IDAHO Memorandum of Understanding Between The Bureau of Land Management and The United States Air Force’ dated June 11, 1998.

      (2) This agreement specifies that these mitigation measures will be adopted as part of the Air Force’s Record of Decision for Enhanced Training in Idaho.

      (3) Congress endorses this collaborative effort between the agencies and directs that the agreement be implemented.

    (b) MODIFICATION- The parties may, in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), mutually agree to modify the mitigation measures specified in the agreement in light of experience gained through the actions called for in the agreement or as a result of changed military circumstances.

    (c) CONSTRUCTION- Neither the agreement, any modification thereof, nor this section creates any right, benefit, or trust responsibility, substantive or procedural, enforceable at law or equity by a party against the United States, its agencies, its officers, or any person.

SEC. 2905. RIGHT-OF-WAY GRANTS.

    In addition to the withdrawal under section 2902 and in accordance with all applicable laws, the Secretary of the Interior shall process and grant the Secretary of the Air Force rights-of-way using the Department of the Interior regulations and policies in effect at the time of filing applications for the one-quarter acre electronic warfare threat emitter sites, roads, powerlines, and other ancillary facilities as described and analyzed in the Enhanced Training in Idaho Final Environmental Impact Statement, dated January 1998.

SEC. 2906. INDIAN SACRED SITES.

    (a) MANAGEMENT- (1) In the management of the Federal lands withdrawn and reserved by this title, the Air Force shall, to the extent practicable and not clearly inconsistent with essential agency functions--

      (A) accommodate access to and ceremonial use of Indian sacred sites by Indian religious practitioners; and

      (B) avoid adversely affecting the integrity of such sacred sites.

    (2) The Secretary of the Air Force shall maintain the confidentiality of such sites where appropriate.

    (b) CONSULTATION- The commander of Mountain Home Air Force Base, Idaho, shall regularly consult with the Tribal Chairman of the Shoshone-Paiute Tribes of the Duck Valley Reservation to assure that tribal government rights and concerns are fully considered during the development of the Juniper Butte Range.

    (c) DEFINITIONS- In this section:

      (1) The term ‘sacred site’ shall mean any specific, discrete, narrowly delineated location on Federal land that is identified by an Indian tribe, or Indian individual determined to be an appropriately authoritative representative of an Indian religion, as sacred by virtue of its established religious significance to, or ceremonial use by, an Indian religion but only to the extent that the tribe or appropriately authoritative representative of an Indian religion has informed the Air Force of the existence of such a site.

      (2) The term ‘Indian tribe’ means an Indian or Alaska Native tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe pursuant to the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a-1).

      (3) The term ‘Indian’ refers to a member of an Indian tribe.

SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.

    (a) AUTHORITY TO CONCLUDE AND IMPLEMENT AGREEMENTS- The Secretary of the Air Force is authorized and directed to, upon such terms and conditions as the Secretary of the Air Force considers just and in the national interest, conclude and implement agreements with the grazing permittees to provide appropriate consideration, including future grazing arrangements.

    (b) IMPLEMENTATION- (1) Upon the conclusion of these agreements, the Assistant Secretary of the Interior for Land and Minerals Management shall grant rights-of-way and approvals and take such actions as are necessary to implement promptly this title and the agreements with the grazing permittees.

    (2) The Secretary of the Air Force and the Secretary of the Interior shall allow the grazing permittees for lands withdrawn and reserved by this title to continue their activities on the lands in accordance with the permits and their applicable regulations until the Secretary of the Air Force has fully implemented the agreement with the grazing permittees under this section.

    (3) Upon the implementation of these agreements, the Bureau of Land Management is authorized and directed, subject to the limitations included in this section, to terminate grazing on the lands withdrawn.

SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

    (a) IN GENERAL- Except as provided in section 2916(d), during the withdrawal and reservation of any lands under this title, the Secretary of the Air Force shall manage such lands for purposes relating to the uses set forth in section 2902(b).

    (b) MANAGEMENT ACCORDING TO PLAN- The lands withdrawn and reserved by this title shall be managed in accordance with the provisions of this title under the integrated natural resources management plan prepared under section 2909.

    (c) AUTHORITY TO CLOSE LAND- (1) If the Secretary of the Air Force determines that military operations, public safety, or the interests of national security require the closure to public use of any road, trail, or other portion of the lands withdrawn by this title that are commonly in public use, the Secretary of the Air Force may take such action.

    (2) Closures under paragraph (1) shall be limited to the minimum areas and periods required for the purposes specified in this subsection.

    (3) During closures, the Secretary of the Air Force shall keep appropriate warning notices posted and take appropriate steps to notify the public about the closures.

    (d) LEASE AUTHORITY- The Secretary of the Air Force may enter into leases for State lands with the State of Idaho in support of the Juniper Butte Range and operations at the Juniper Butte Range.

    (e) PREVENTION AND SUPPRESSION OF FIRE- (1) The Secretary of the Air Force shall take appropriate precautions to prevent and suppress brush fires and range fires that occur within the boundaries of the Juniper Butte Range, as well as brush and range fires occurring outside the boundaries of the Range resulting from military activities.

    (2) Notwithstanding section 2465 of title 10, United States Code, the Secretary of the Air Force may obligate funds appropriated or otherwise available to the Secretary to enter into contracts for fire-fighting.

    (3)(A) The memorandum of understanding under section 2910 shall provide for the Bureau of Land Management to assist the Secretary of the Air Force in the suppression of the fires described in paragraph (1).

    (B) The memorandum of understanding shall provide that the Secretary of the Air Force reimburse the Bureau of Land Management for any costs incurred by the Bureau of Land Management under this paragraph.

    (f) USE OF MINERAL MATERIALS- Notwithstanding any other provision of this title or the Act of July 31, 1947 (commonly known as the Materials Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the Air Force may use, from the lands withdrawn and reserved by this title, sand, gravel, or similar mineral material resources of the type subject to disposition under the Act of July 31, 1947, when the use of such resources is required for construction needs of the Juniper Butte Range.

SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

    (a) REQUIREMENT- (1)(A) Not later than 2 years after the date of the enactment of this Act, the Secretary of the Air Force shall, in cooperation with the Secretary of the Interior, the State of Idaho, and Owyhee County, Idaho, develop an integrated natural resources management plan to address the management of the resources of the lands withdrawn and reserved by this title during their withdrawal and reservation under this title.

    (B) Additionally, the integrated natural resource management plan shall address mitigation and monitoring activities by the Air Force for State and Federal lands affected by military training activities associated with the Juniper Butte Range.

    (C) The foregoing will be done cooperatively between the Air Force, the Bureau of Land Management, the State of Idaho, and Owyhee County, Idaho.

    (2) Except as otherwise provided under this title, the integrated natural resources management plan under this section shall be developed in accordance with, and meet the requirements of, section 101 of the Sikes Act (16 U.S.C. 670a).

    (3)(A) Site development plans shall be prepared before construction of facilities.

    (B) Such plans shall be reviewed by the Bureau of Land Management, for Federal lands, and the State of Idaho, for State lands, for consistency with the proposal assessed in the Enhanced Training in Idaho Environmental Impact Statement.

    (C) The portion of such development plans describing reconfigurable or replacement targets may be conceptual.

    (b) ELEMENTS- The integrated natural resources management plan under subsection (a) shall--

      (1) include provisions for the proper management and protection of the natural, cultural, and other resources and values of the lands withdrawn and reserved by this title and for the use of such resources in a manner consistent with the uses set forth in section 2902(b);

      (2) permit livestock grazing at the discretion of the Secretary of the Air Force in accordance with section 2907 or any other authorities relating to livestock grazing that are available to that Secretary;

      (3) permit fencing, water pipeline modifications and extensions, and the construction of aboveground water reservoirs, and the maintenance and repair of these items on the lands withdrawn and reserved by this title, and on other lands under the jurisdiction of the Bureau of Land Management; and

      (4) otherwise provide for the management by the Secretary of the Air Force of any lands withdrawn and reserved by this title while retained under the jurisdiction of that Secretary under this title.

    (c) PERIODIC REVIEW- The Secretary of the Air Force shall, in cooperation with the Secretary of the Interior and the State of Idaho, review the adequacy of the provisions of the integrated natural resources management plan developed under this section at least once every 5 years after the effective date of the plan.

SEC. 2910. MEMORANDUM OF UNDERSTANDING.

    (a) REQUIREMENT- The Secretary of the Air Force, the Secretary of the Interior, and the Governor of the State of Idaho shall jointly enter into a memorandum of understanding to implement the integrated natural resources management plan required under section 2909.

    (b) TERM- The memorandum of understanding under subsection (a) shall apply to any lands withdrawn and reserved by this title until their relinquishment by the Secretary of the Air Force under this title.

    (c) MODIFICATION- The memorandum of understanding under subsection (a) may be modified by agreement of all the parties specified in that subsection.

SEC. 2911. MAINTENANCE OF ROADS.

    The Secretary of the Air Force shall enter into agreements with the Owyhee County Highway District, Idaho, and the Three Creek Good Roads Highway District, Idaho, under which the Secretary of the Air Force shall pay the costs of road maintenance incurred by such districts that are attributable to operations of the Department of the Air Force associated with the Juniper Butte Range.

SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

    Except as provided in subsection 2908(f), the Secretary of the Interior shall manage all withdrawn and acquired mineral resources within the boundaries of the Juniper Butte Range in accordance with the Act of February 28, 1958 (commonly known as the Engle Act; 43 U.S.C. 155 et seq.).

SEC. 2913. HUNTING, FISHING, AND TRAPPING.

    All hunting, fishing, and trapping on the lands withdrawn and reserved by this title shall be conducted in accordance with section 2671 of title 10, United States Code.

SEC. 2914. WATER RIGHTS.

    (a) LIMITATION- The Secretary of the Air Force shall not seek or obtain any water rights associated with any water pipeline modified or extended, or aboveground water reservoir constructed, for purposes of consideration under section 2907.

    (b) NEW RIGHTS- (1) Nothing in this title shall be construed to establish a reservation in favor of the United States with respect to any water or water right on the lands withdrawn and reserved by this title.

    (2) Nothing in this title shall be construed to authorize the appropriation of water on the lands withdrawn and reserved by this title by the United States after the date of the enactment of this Act unless such appropriation is carried out in accordance with the laws of the State of Idaho.

    (c) APPLICABILITY- This section may not be construed to affect any water rights acquired by the United States before the date of the enactment of this Act.

SEC. 2915. DURATION OF WITHDRAWAL.

    (a) TERMINATION--(1) Except as otherwise provided in this section and section 2916, the withdrawal and reservation made by this title shall terminate 25 years after the date of the enactment of this Act.

    (2) At the time of termination, the previously withdrawn lands shall not be open to the general land laws, including the mining laws and the mineral and geothermal leasing laws, until the Secretary of the Interior publishes in the Federal Register an appropriate order which shall state the date upon which such lands shall be opened.

    (b) RELINQUISHMENT- (1) If the Secretary of the Air Force determines under subsection (c) that the Air Force has no continuing military need for any lands withdrawn and reserved by this title, the Secretary of the Air Force shall submit to the Secretary of the Interior a notice of intent to relinquish jurisdiction over such lands to the Secretary of the Interior.

    (2) The Secretary of the Interior may accept jurisdiction over any lands covered by a notice of intent to relinquish jurisdiction under paragraph (1) if the Secretary of the Interior determines that the Secretary of the Air Force has completed the environmental review required under section 2916(a) and the conditions under section 2916(c) have been met.

    (3) If the Secretary of the Interior decides to accept jurisdiction over lands under paragraph (2) before the date of termination, as provided for in subsection (a)(1), the Secretary of the Interior shall publish in the Federal Register an appropriate order which shall--

      (A) revoke the withdrawal and reservation of such lands under this title;

      (B) constitute official acceptance of administrative jurisdiction over the lands by the Secretary of the Interior; and

      (C) state the date upon which such lands shall be opened to the operation of the general land laws, including the mining laws and the mineral and geothermal leasing laws, if appropriate.

    (4) The Secretary of the Interior shall manage any lands relinquished under this subsection as multiple use status lands.

    (5) If the Secretary of the Interior declines pursuant to subsection (b)(2) to accept jurisdiction of any parcel of land proposed for relinquishment, that parcel shall remain under the continued administration of the Secretary of the Air Force pursuant to section 2916(d).

    (c) EXTENSION- (1) In the case of any lands withdrawn and reserved by this title that the Air Force proposes to include in a notice of extension because of continued military need under paragraph (2), the Secretary of the Air Force shall, before issuing the notice under paragraph (2)--

      (A) evaluate the environmental effects of the extension of the withdrawal and reservation of such lands in accordance with all applicable laws and regulations; and

      (B) hold at least one public meeting in the State of Idaho regarding that evaluation.

    (2)(A) Not later than 2 years before the termination of the withdrawal and reservation of lands by this title under subsection (a), the Secretary of the Air Force shall notify Congress and the Secretary of the Interior as to whether or not the Air Force has a continuing military need for any of the lands withdrawn and reserved by this title, and not previously relinquished under this section, after the termination date as specified in subsection (a).

    (B)(i) The Secretary of the Air force shall specify in the notice under subparagraph (A) the duration of any extension or further extension of withdrawal and reservation of such lands under this title.

    (ii) The duration of each extension or further extension under clause (i) shall not exceed 25 years.

    (C) The notice under subparagraph (A) shall be published in the Federal Register and a newspaper of local distribution with the opportunity for comments, within a 60-day period, which shall be provided to the Secretary of the Air Force and the Secretary of the Interior.

    (3)(A) Subject to subparagraph (B), in the case of any lands withdrawn and reserved by this title that are covered by a notice of extension under subsection (c)(2), the withdrawal and reservation of such lands shall extend under the provisions of this title after the termination date otherwise provided for under subsection (a) for such period as is specified in the notice under subsection (c)(2).

    (B) Subparagraph (A) shall not apply with respect to any lands covered by a notice referred to in that paragraph until 90 legislative days after the date on which the notice with respect to such lands is submitted to Congress under paragraph (2).

SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED WITHDRAWN LANDS OR UPON TERMINATION OF WITHDRAWAL.

    (a) ENVIRONMENTAL REVIEW- (1) Before submitting under section 2915 a notice of an intent to relinquish jurisdiction over lands withdrawn and reserved by this title, and in all cases not later than 2 years before the date of termination of withdrawal and reservation, the Secretary of the Air Force shall, in consultation with the Secretary of the Interior, complete a review that fully characterizes the environmental conditions of such lands (including any water and air associated with such lands) in order to identify any contamination on such lands.

    (2) The Secretary of the Air Force shall submit to the Secretary of the Interior a copy of the review prepared with respect to any lands under paragraph (1). The Secretary of the Air Force shall also submit at the same time any notice of intent to relinquish jurisdiction over such lands under section 2915.

    (3) The Secretary of the Air Force shall submit a copy of any such review to Congress.

    (b) ENVIRONMENTAL REMEDIATION OF LANDS- The Secretary of the Air Force shall, in accordance with applicable State and Federal law, carry out and complete environmental remediation--

      (1) before relinquishing jurisdiction to the Secretary of the Interior over any lands identified in a notice of intent to relinquish under section 2915(b); or

      (2) before the date of termination of the withdrawal and reservation, except as provided under subsection (d).

    (c) POSTPONEMENT OF RELINQUISHMENT- The Secretary of the Interior shall not accept jurisdiction over any lands that are the subject of activities under subsection (b) until the Secretary of the Interior determines that environmental conditions on the lands are such that--

      (1) all necessary environmental remediation has been completed by the Secretary of the Air Force;

      (2) the lands are safe for nonmilitary uses; and

      (3) the lands could be opened consistent with the Secretary of the Interior’s public land management responsibilities.

    (d) JURISDICTION WHEN WITHDRAWAL TERMINATES- If the determination required by section (c) cannot be achieved for any parcel of land subject to the withdrawal and reservation before the termination date of the withdrawal and reservation, the Secretary of the Air Force shall retain administrative jurisdiction over such parcels of land notwithstanding the termination date for the limited purposes of--

      (1) environmental remediation activities under subsection (b); and

      (2) any activities relating to the management of such lands after the termination of the withdrawal reservation for military purposes that are provided for in the integrated natural resources management plan under section 2909.

    (e) EFFECT ON OTHER LAWS- Nothing in this title shall affect, or be construed to affect, the obligations, if any, of the Secretary of the Air Force to decontaminate lands withdrawn by this title pursuant to applicable law, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2917. DELEGATION OF AUTHORITY.

    (a) DEPARTMENT OF THE AIR FORCE FUNCTIONS- Except for executing the agreement referred to in section 2907, the Secretary of the Air Force may delegate that Secretary’s functions under this title.

    (b) DEPARTMENT OF THE INTERIOR FUNCTIONS- (1) Except as provided in paragraph (2), the Secretary of the Interior may delegate that Secretary’s functions under this title.

    (2) The order referred to in section 2915(b)(3) may be approved and signed only by the Secretary of the Interior, the Deputy Secretary of the Interior, or an Assistant Secretary of the Interior.

    (3) The approvals granted by the Bureau of Land Management shall be pursuant to the decisions of the Secretary of the Interior, or the Assistant Secretary for Land and Minerals Management.

SEC. 2918. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal leasing activity on lands withdrawn and reserved by this title shall indemnify the United States against any costs, fees, damages, or other liabilities (including costs of litigation) incurred by the United States and arising from or relating to such mining activities, including costs of mineral materials disposal, whether arising under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), or otherwise.

SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be necessary to carry out this title.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

      Sec.3101.Weapons activities.

      Sec.3102.Defense environmental restoration and waste management.

      Sec.3103.Other defense activities.

      Sec.3104.Defense nuclear waste disposal.

      Sec.3105.Defense environmental management privatization.

Subtitle B--Recurring General Provisions

      Sec.3121.Reprogramming.

      Sec.3122.Limits on general plant projects.

      Sec.3123.Limits on construction projects.

      Sec.3124.Fund transfer authority.

      Sec.3125.Authority for conceptual and construction design.

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

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

      Sec.3128.Availability of funds.

      Sec.3129.Transfers of defense environmental management funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

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

      Sec.3132.Support of ballistic missile defense activities of the Department of Defense.

      Sec.3133.Nonproliferation activities.

      Sec.3134.Licensing of certain mixed oxide fuel fabrication and irradiation facilities.

      Sec.3135.Continuation of processing, treatment, and disposition of legacy nuclear materials.

      Sec.3136.Authority for Department of Energy federally funded research and development centers to participate in merit-based technology research and development programs.

      Sec.3137.Activities of Department of Energy facilities.

      Sec.3138.Hanford overhead and service center costs.

      Sec.3139.Hanford waste tank cleanup program reforms.

      Sec.3140.Hanford Health Information Network.

      Sec.3141.Hazardous materials management and emergency response training program.

      Sec.3142.Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico.

      Sec.3143.Relocation of National Atomic Museum, Albuquerque, New Mexico.

      Sec.3144.Tritium production.

Subtitle D--Other Matters

      Sec.3151.Study and plan relating to worker and community transition assistance.

      Sec.3152.Extension of authority for appointment of certain scientific, engineering, and technical personnel.

      Sec.3153.Requirement for plan to modify employment system used by Department of Energy in defense environmental management programs.

      Sec.3154.Department of Energy nuclear materials couriers.

      Sec.3155.Increase in maximum rate of pay for scientific, engineering, and technical personnel responsible for safety at defense nuclear facilities.

      Sec.3156.Extension of authority of Department of Energy to pay voluntary separation incentive payments.

      Sec.3157.Repeal of fiscal year 1998 statement of policy on stockpile stewardship program.

      Sec.3158.Report on stockpile stewardship criteria.

      Sec.3159.Panel to assess the reliability, safety, and security of the United States nuclear stockpile.

      Sec.3160.International cooperative information exchange.

      Sec.3161.Protection against inadvertent release of Restricted Data and Formerly Restricted Data.

      Sec.3162.Sense of Congress regarding treatment of Formerly Utilized Sites Remedial Action Program under a nondefense discretionary budget function.

      Sec.3163.Reports relating to tritium production.

Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for weapons activities in carrying out programs necessary for national security in the amount of $4,511,600,000, to be allocated as follows:

      (1) STOCKPILE STEWARDSHIP- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for stockpile stewardship in carrying out weapons activities necessary for national security programs in the amount of $2,148,375,000, to be allocated as follows:

        (A) For core stockpile stewardship, $1,591,375,000, to be allocated as follows:

          (i) For operation and maintenance, $1,475,832,000.

          (ii) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $115,543,000, to be allocated as follows:

            Project 99-D-102, rehabilitation of maintenance facility, Lawrence Livermore National Laboratory, Livermore, California, $6,500,000.

            Project 99-D-103, isotope sciences facilities, Lawrence Livermore National Laboratory, Livermore, California, $4,000,000.

            Project 99-D-104, protection of real property (roof reconstruction, Phase II), Lawrence Livermore National Laboratory, Livermore, California, $7,300,000.

            Project 99-D-105, central health physics calibration facility, Los Alamos National Laboratory, Los Alamos, New Mexico, $3,900,000.

            Project 99-D-106, model validation and system certification test center, Sandia National Laboratories, Albuquerque, New Mexico, $1,600,000.

            Project 99-D-107, joint computational engineering laboratory, Sandia National Laboratories, Albuquerque, New Mexico, $1,800,000.

            Project 99-D-108, renovate existing roadways, Nevada Test Site, Nevada, $2,000,000.

            Project 97-D-102, dual-axis radiographic hydrotest facility, Los Alamos National Laboratory, Los Alamos, New Mexico, $36,000,000.

            Project 96-D-102, stockpile stewardship facilities revitalization, Phase VI, various locations, $20,423,000.

            Project 96-D-103, ATLAS, Los Alamos National Laboratory, Los Alamos, New Mexico, $6,400,000.

            Project 96-D-104, processing and environmental technology laboratory, Sandia National Laboratories, Albuquerque, New Mexico, $18,920,000.

            Project 96-D-105, contained firing facility addition, Lawrence Livermore National Laboratory, Livermore, California, $6,700,000.

        (B) For inertial fusion, $498,000,000, to be allocated as follows:

          (i) For operation and maintenance, $213,800,000.

          (ii) For the following plant project (including maintenance, restoration, planning, construction, acquisition, and modification of facilities, and land acquisition related thereto), $284,200,000, to be allocated as follows:

            Project 96-D-111, national ignition facility, Lawrence Livermore National Laboratory, Livermore, California, $284,200,000.

        (C) For technology partnership and education, $59,000,000, to be allocated as follows:

          (i) For technology partnership, $50,000,000.

          (ii) For education, $9,000,000.

      (2) STOCKPILE MANAGEMENT- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for stockpile management in carrying out weapons activities necessary for national security programs in the amount of $2,113,225,000, to be allocated as follows:

        (A) For operation and maintenance, $2,014,303,000.

        (B) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $98,922,000, to be allocated as follows:

          Project 99-D-122, rapid reactivation, various locations, $11,200,000.

          Project 99-D-123, replace mechanical utility systems, Y-12 Plant, Oak Ridge, Tennessee, $1,900,000.

          Project 99-D-125, replace boilers and controls, Kansas City Plant, Kansas City, Missouri, $1,000,000.

          Project 99-D-127, stockpile management restructuring initiative, Kansas City Plant, Kansas City, Missouri, $13,700,000.

          Project 99-D-128, stockpile management restructuring initiative, Pantex Plant consolidation, Amarillo, Texas, $1,108,000.

          Project 99-D-132, stockpile management restructuring initiative, nuclear material safeguards and security upgrades project, Los Alamos National Laboratory, Los Alamos, New Mexico, $9,700,000.

          Project 98-D-123, stockpile management restructuring initiative, tritium facility modernization and consolidation, Savannah River Site, Aiken, South Carolina, $27,500,000.

          Project 98-D-124, stockpile management restructuring initiative, Y-12 Plant consolidation, Oak Ridge, Tennessee, $10,700,000.

          Project 97-D-122, nuclear materials storage facility renovation, Los Alamos National Laboratory, Los Alamos, New Mexico, $3,764,000.

          Project 97-D-123, structural upgrades, Kansas City Plant, Kansas City, Missouri, $6,400,000.

          Project 96-D-122, sewage treatment quality upgrade, Pantex Plant, Amarillo, Texas, $3,700,000.

          Project 95-D-102, chemistry and metallurgy research building upgrades, Los Alamos National Laboratory, Los Alamos, New Mexico, $5,000,000.

          Project 93-D-122, life safety upgrades, Y-12 Plant, Oak Ridge, Tennessee, $3,250,000.

      (3) PROGRAM DIRECTION- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for program direction in carrying out weapons activities necessary for national security programs in the amount of $250,000,000.

    (b) ADJUSTMENTS-

      (1) CONSTRUCTION- The total amount authorized to be appropriated pursuant to paragraphs (1)(A)(ii), (1)(B)(ii), and (2)(B) of subsection (a) is the sum of the amounts authorized to be appropriated in those paragraphs, reduced by $13,600,000.

      (2) NON-CONSTRUCTION- The total amount authorized to be appropriated pursuant to paragraphs (1)(A)(i), (1)(B)(i), (1)(C), (2)(A), and (3) of subsection (a) is the sum of the amounts authorized to be appropriated in those paragraphs, reduced by $178,900,000, to be derived from use of prior year balances.

SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for environmental restoration and waste management in carrying out programs necessary for national security in the amount of $5,446,143,000, to be allocated as follows:

      (1) CLOSURE PROJECTS- For closure projects carried out in accordance with section 3143 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2836; 42 U.S.C. 7274n) in the amount of $1,038,240,000.

      (2) SITE PROJECT AND COMPLETION- For site project and completion in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $1,067,253,000, to be allocated as follows:

        (A) For operation and maintenance, $868,090,000.

        (B) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $199,163,000, to be allocated as follows:

          Project 99-D-402, tank farm support services, F&H areas, Savannah River Site, Aiken, South Carolina, $2,745,000.

          Project 99-D-404, health physics instrumentation laboratory, Idaho National Engineering Laboratory, Idaho, $950,000.

          Project 98-D-401, H-tank farm storm water systems upgrade, Savannah River Site, Aiken, South Carolina, $3,120,000.

          Project 98-D-453, plutonium stabilization and handling system for plutonium finishing plant, Richland, Washington, $26,814,000.

          Project 98-D-700, road rehabilitation, Idaho National Engineering Laboratory, Idaho, $7,710,000.

          Project 97-D-450, Actinide packaging and storage facility, Savannah River Site, Aiken, South Carolina, $79,184,000.

          Project 97-D-470, environmental monitoring laboratory, Savannah River Site, Aiken, South Carolina, $7,000,000.

          Project 96-D-406, spent nuclear fuels canister storage and stabilization facility, Richland, Washington, $38,680,000.

          Project 96-D-408, waste management upgrades, Kansas City Plant, Kansas City, Missouri, and Savannah River Site, Aiken, South Carolina, $4,512,000.

          Project 96-D-464, electrical and utility systems upgrade, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho, $11,544,000.

          Project 96-D-471, chlorofluorocarbon heating, ventilation, and air conditioning and chiller retrofit, Savannah River Site, Aiken, South Carolina, $8,000,000.

          Project 95-D-456, security facilities consolidation, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho, $485,000.

          Project 92-D-140, F&H canyon exhaust upgrades, Savannah River Site, Aiken, South Carolina, $3,667,000.

          Project 86-D-103, decontamination and waste treatment facility, Lawrence Livermore National Laboratory, Livermore, California, $4,752,000.

      (3) POST-2006 COMPLETION- For post-2006 project completion in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $2,744,451,000, to be allocated as follows:

        (A) For operation and maintenance, $2,663,195,000.

        (B) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $81,256,000, to be allocated as follows:

          Project 99-D-403, privatization phase I infrastructure support, Richland, Washington, $14,800,000.

          Project 97-D-402, tank farm restoration and safe operations, Richland, Washington, $22,723,000.

          Project 96-D-408, waste management upgrades, Richland, Washington, $171,000.

          Project 94-D-407, initial tank retrieval systems, Richland, Washington, $32,860,000.

          Project 93-D-187, high-level waste removal from filled waste tanks, Savannah River Site, Aiken, South Carolina, $10,702,000.

      (4) SCIENCE AND TECHNOLOGY- For science and technology in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $250,000,000.

      (5) PROGRAM DIRECTION- For program direction in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $346,199,000.

    (b) ADJUSTMENT- The total amount authorized to be appropriated pursuant to paragraphs (1), (2)(A), (3)(A), (4), and (5) of subsection (a) is the sum of the amounts authorized to be appropriated in those paragraphs, reduced by $94,100,000, to be derived from use of prior year balances.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for other defense activities in carrying out programs necessary for national security in the amount of $1,716,160,000, to be allocated as follows:

      (1) NONPROLIFERATION AND NATIONAL SECURITY- For nonproliferation and national security, $699,300,000, to be allocated as follows:

        (A) For verification and control technology, $503,500,000, to be allocated as follows:

          (i) For nonproliferation and verification research and development, $210,000,000.

          (ii) For arms control, $256,900,000.

          (iii) For intelligence, $36,600,000.

        (B) For nuclear safeguards and security, $53,200,000.

        (C) For security investigations, $30,000,000.

        (D) For emergency management, $23,700,000.

        (E) For program direction, $88,900,000.

      (2) WORKER AND COMMUNITY TRANSITION ASSISTANCE- For worker and community transition assistance, $40,000,000, to be allocated as follows:

        (A) For worker and community transition, $36,000,000.

        (B) For program direction, $4,000,000.

      (3) FISSILE MATERIALS CONTROL AND DISPOSITION- For fissile materials control and disposition, $168,960,000, to be allocated as follows:

        (A) For operation and maintenance, $111,372,000.

        (B) For program direction, $4,588,000.

        (C) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $53,000,000, to be allocated as follows:

          Project 99-D-141, pit disassembly and conversion facility, various locations, $25,000,000.

          Project 99-D-143, mixed oxide fuel fabrication facility, various locations, $28,000,000.

      (4) ENVIRONMENT, SAFETY, AND HEALTH- For environment, safety, and health, defense, $89,000,000, to be allocated as follows:

        (A) For the Office of Environment, Safety, and Health (Defense), $84,231,000.

        (B) For program direction, $4,769,000.

      (5) OFFICE OF HEARINGS AND APPEALS- For the Office of Hearings and Appeals, $2,400,000.

      (6) INTERNATIONAL NUCLEAR SAFETY- For international nuclear safety, $35,000,000.

      (7) NAVAL REACTORS- For naval reactors, $681,500,000, to be allocated as follows:

        (A) For naval reactors development, $661,400,000, to be allocated as follows:

          (i) For operation and maintenance, $639,600,000.

          (ii) For plant projects (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto), $21,800,000, to be allocated as follows:

            GPN-101, general plant projects, various locations, $9,000,000.

            Project 98-D-200, site laboratory/facility upgrade, various locations, $7,000,000.

            Project 90-N-102, expended core facility dry cell project, Naval Reactors Facility, Idaho, $5,800,000.

        (B) For program direction, $20,100,000.

    (b) ADJUSTMENT- (1) The total amount authorized to be appropriated pursuant to this section is the sum of the amounts authorized to be appropriated in paragraphs (1) through (7) of subsection (a) reduced by $2,000,000.

    (2) The amount authorized to be appropriated pursuant to subsection (a)(1)(C) is reduced by $20,000,000 to reflect an offset provided by user organizations for security investigations.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for payment to the Nuclear Waste Fund established in section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of $190,000,000.

SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

    (a) IN GENERAL- Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1999 for privatization initiatives in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $286,857,000, to be allocated as follows:

      Project 99-PVT-1, remote handled transuranic waste transportation, Carlsbad, New Mexico, $19,605,000.

      Project 98-PVT-2, spent nuclear fuel dry storage, Idaho Falls, Idaho, $30,000,000.

      Project 98-PVT-5, waste disposal, Oak Ridge, Tennessee, $50,000,000.

      Project 97-PVT-1, tank waste remediation system phase I, Hanford, Washington, $100,000,000.

      Project 97-PVT-2, advanced mixed waste treatment facility, Idaho Falls, Idaho, $87,252,000.

    (b) ADJUSTMENT- The amount authorized to be appropriated in subsection (a) is the sum of the amounts authorized to be appropriated for the projects set forth in that subsection, reduced by $32,000,000 for use of prior year balances of funds for defense environmental management privatization.

Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

    (a) IN GENERAL- Until the Secretary of Energy submits to the congressional defense committees the report referred to in subsection (b) and a period of 30 days has elapsed after the date on which such committees receive the report, the Secretary may not use amounts appropriated pursuant to this title for any program--

      (1) in amounts that exceed, in a fiscal year--

        (A) 110 percent of the amount authorized for that program by this title; or

        (B) $1,000,000 more than the amount authorized for that program by this title; or

      (2) which has not been presented to, or requested of, Congress.

    (b) REPORT- (1) The report referred to in subsection (a) is a report containing a full and complete statement of the action proposed to be taken and the facts and circumstances relied upon in support of such proposed action.

    (2) In the computation of the 30-day period under subsection (a), there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain.

    (c) LIMITATIONS- (1) In no event may the total amount of funds obligated pursuant to this title exceed the total amount authorized to be appropriated by this title.

    (2) Funds appropriated pursuant to this title may not be used for an item for which Congress has specifically denied funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) IN GENERAL- The Secretary of Energy may carry out any construction project under the general plant projects authorized by this title if the total estimated cost of the construction project does not exceed $5,000,000.

    (b) REPORT TO CONGRESS- If, at any time during the construction of any general plant project authorized by this title, the estimated cost of the project