[104th Congress Public Law 106]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ106.104]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

[[Page 110 STAT. 186]]

Public Law 104-106
104th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1996 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, to reform acquisition laws 
and information technology management of the Federal Government, and for 
          other purposes. <<NOTE: Feb. 10, 1996 -  [S. 1124]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: National Defense 
Authorization Act for Fiscal Year 1996.>> 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1996''.

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

    (a) Divisions.--This Act is organized into five 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.
            (4) Division D--Federal Acquisition Reform.
            (5) Division E--Information Technology Management Reform.

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

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
Sec. 4. Extension of time for submission of reports.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Procurement of OH-58D Armed Kiowa Warrior helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
Sec. 113. Multiyear procurement of helicopters.

[[Page 110 STAT. 187]]

Sec. 114. Report on AH-64D engine upgrades.
Sec. 115. Requirement for use of previously authorized multiyear 
                    procurement authority for Army small arms 
                    procurement.

                        Subtitle C--Navy Programs

Sec. 131. Nuclear attack submarines.
Sec. 132. Research for advanced submarine technology.
Sec. 133. Cost limitation for Seawolf submarine program.
Sec. 134. Repeal of prohibition on backfit of Trident submarines.
Sec. 135. Arleigh Burke class destroyer program.
Sec. 136. Acquisition program for crash attenuating seats.
Sec. 137. T-39N trainer aircraft.
Sec. 138. Pioneer unmanned aerial vehicle program.

                     Subtitle D--Air Force Programs

Sec. 141. B-2 aircraft program.
Sec. 142. Procurement of B-2 bombers.
Sec. 143. MC-130H aircraft program.

              Subtitle E--Chemical Demilitarization Program

Sec. 151. Repeal of requirement to proceed expeditiously with 
                    development of chemical demilitarization 
                    cryofracture facility at Tooele Army Depot, Utah.
Sec. 152. Destruction of existing stockpile of lethal chemical agents 
                    and munitions.
Sec. 153. Administration of chemical demilitarization program.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Modifications to Strategic Environmental Research and 
                    Development Program.
Sec. 204. Defense dual use technology initiative.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Tactical manned reconnaissance.
Sec. 213. Joint Advanced Strike Technology (JAST) program.
Sec. 214. Development of laser program.
Sec. 215. Navy mine countermeasures program.
Sec. 216. Space-based infrared system.
Sec. 217. Defense Nuclear Agency programs.
Sec. 218. Counterproliferation support program.
Sec. 219. Nonlethal weapons study.
Sec. 220. Federally funded research and development centers and 
                    university-affiliated research centers.
Sec. 221. Joint seismic program and global seismic network.
Sec. 222. Hydra-70 rocket product improvement program.
Sec. 223. Limitation on obligation of funds until receipt of electronic 
                    combat consolidation master plan.
Sec. 224. Report on reductions in research, development, test, and 
                    evaluation.
Sec. 225. Advanced Field Artillery System (Crusader).
Sec. 226. Demilitarization of conventional munitions, rockets, and 
                    explosives.
Sec. 227. Defense Airborne Reconnaissance program.

            Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Findings.
Sec. 233. Ballistic Missile Defense policy.
Sec. 234. Theater Missile Defense architecture.
Sec. 235. Prohibition on use of funds to implement an international 
                    agreement concerning Theater Missile Defense 
                    systems.
Sec. 236. Ballistic Missile Defense cooperation with allies.
Sec. 237. ABM Treaty defined.

Sec. 238. Repeal of Missile Defense Act of 1991.

         Subtitle D--Other Ballistic Missile Defense Provisions

Sec. 251. Ballistic Missile Defense program elements.
Sec. 252. Testing of Theater Missile Defense interceptors.

[[Page 110 STAT. 188]]

Sec. 253. Repeal of missile defense provisions.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.
Sec. 262. Review of C<SUP>4</SUP>I by National Research Council.
Sec. 263. Analysis of consolidation of basic research accounts of 
                    military departments.
Sec. 264. Change in reporting period from calendar year to fiscal year 
                    for annual report on certain contracts to colleges 
                    and universities.
Sec. 265. Aeronautical research and test capabilities assessment.

                        Subtitle F--Other Matters

Sec. 271. Advanced lithography program.
Sec. 272. Enhanced fiber optic guided missile (EFOG-M) system.
Sec. 273. States eligible for assistance under Defense Experimental 
                    Program To Stimulate Competitive Research.
Sec. 274. Cruise missile defense initiative.
Sec. 275. Modification to university research initiative support 
                    program.
Sec. 276. Manufacturing technology program.
Sec. 277. Five-year plan for consolidation of defense laboratories and 
                    test and evaluation centers.
Sec. 278. Limitation on T-38 avionics upgrade program.
Sec. 279. Global Positioning System.
Sec. 280. Revision of authority for providing Army support for the 
                    National Science Center for Communications and 
                    Electronics.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol.

                   Subtitle B--Depot-Level Activities

Sec. 311. Policy regarding performance of depot-level maintenance and 
                    repair for the Department of Defense.
Sec. 312. Management of depot employees.
Sec. 313. Extension of authority for aviation depots and naval shipyards 
                    to engage in defense-related production and 
                    services.
Sec. 314. Modification of notification requirement regarding use of core 
                    logistics functions waiver.

                  Subtitle C--Environmental Provisions

Sec. 321. Revision of requirements for agreements for services under 
                    environmental restoration program.
Sec. 322. Addition of amounts creditable to Defense Environmental 
                    Restoration Account.
Sec. 323. Use of Defense Environmental Restoration Account.
Sec. 324. Revision of authorities relating to restoration advisory 
                    boards.
Sec. 325. Discharges from vessels of the Armed Forces.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Operation of commissary system.
Sec. 332. Limited release of commissary stores sales information to 
                    manufacturers, distributors, and other vendors doing 
                    business with Defense Commissary Agency.
Sec. 333. Economical distribution of distilled spirits by 
                    nonappropriated fund instrumentalities.
Sec. 334. Transportation by commissaries and exchanges to overseas 
                    locations.
Sec. 335. Demonstration project for uniform funding of morale, welfare, 
                    and recreation activities at certain military 
                    installations.
Sec. 336. Operation of combined exchange and commissary stores.
Sec. 337. Deferred payment programs of military exchanges.
Sec. 338. Availability of funds to offset expenses incurred by Army and 
                    Air Force Exchange Service on account of troop 
                    reductions in Europe.
Sec. 339. Study regarding improving efficiencies in operation of 
                    military exchanges and other morale, welfare, and 
                    recreation activities and commissary stores.

[[Page 110 STAT. 189]]

Sec. 340. Repeal of requirement to convert ships' stores to 
                    nonappropriated fund instrumentalities.
Sec. 341. Disposition of excess morale, welfare, and recreation funds.
Sec. 342. Clarification of entitlement to use of morale, welfare, and 
                    recreation facilities by members of reserve 
                    components and dependents.

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

Sec. 351. Competitive procurement of printing and duplication services.
Sec. 352. Direct vendor delivery system for consumable inventory items 
                    of Department of Defense.
Sec. 353. Payroll, finance, and accounting functions of the Department 
                    of Defense.
Sec. 354. Demonstration program to identify overpayments made to 
                    vendors.
Sec. 355. Pilot program on private operation of defense dependents' 
                    schools.
Sec. 356. Program for improved travel process for the Department of 
                    Defense.
Sec. 357. Increased reliance on private-sector sources for commercial 
                    products and services.

         Subtitle F--Miscellaneous Reviews, Studies, and Reports

Sec. 361. Quarterly readiness reports.
Sec. 362. Restatement of requirement for semiannual reports to Congress 
                    on transfers from high-priority readiness 
                    appropriations.
Sec. 363. Report regarding reduction of costs associated with contract 
                    management oversight.
Sec. 364. Reviews of management of inventory control points and Material 
                    Management Standard System.
Sec. 365. Report on private performance of certain functions performed 
                    by military aircraft.
Sec. 366. Strategy and report on automated information systems of 
                    Department of Defense.

                        Subtitle G--Other Matters

Sec. 371. Codification of Defense Business Operations Fund.
Sec. 372. Clarification of services and property that may be exchanged 
                    to benefit the historical collection of the Armed 
                    Forces.
Sec. 373. Financial management training.
Sec. 374. Permanent authority for use of proceeds from the sale of 
                    certain lost, abandoned, or unclaimed property.
Sec. 375. Sale of military clothing and subsistence and other supplies 
                    of the Navy and Marine Corps.
Sec. 376. Personnel services and logistical support for certain 
                    activities held on military installations.
Sec. 377. Retention of monetary awards.
Sec. 378. Provision of equipment and facilities to assist in emergency 
                    response actions.
Sec. 379. Report on Department of Defense military and civil defense 
                    preparedness to respond to emergencies resulting 
                    from a chemical, biological, radiological, or 
                    nuclear attack.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary variation in DOPMA authorized end strength 
                    limitations for active duty Air Force and Navy 
                    officers in certain grades.
Sec. 403. Certain general and flag officers awaiting retirement not to 
                    be counted.

                       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. Counting of certain active component personnel assigned in 
                    support of reserve component training.
Sec. 414. Increase in number of members in certain grades authorized to 
                    serve on active duty in support of the Reserves.
Sec. 415. Reserves on active duty in support of cooperative threat 
                    reduction programs not to be counted.
Sec. 416. Reserves on active duty for military-to-military contacts and 
                    comparable activities not to be counted.

               Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.

               Subtitle D--Authorization of Appropriations

[[Page 110 STAT. 190]]

Sec. 431. Authorization of appropriations for military personnel.
Sec. 432. Authorization for increase in active-duty end strengths.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Joint officer management.
Sec. 502. Retired grade for officers in grades above major general and 
                    rear admiral.
Sec. 503. Wearing of insignia for higher grade before promotion.
Sec. 504. Authority to extend transition period for officers selected 
                    for early retirement.
Sec. 505. Army officer manning levels.
Sec. 506. Authority for medical department officers other than 
                    physicians to be appointed as Surgeon General.
Sec. 507. Deputy Judge Advocate General of the Air Force.
Sec. 508. Authority for temporary promotions for certain Navy 
                    lieutenants with critical skills.
Sec. 509. Retirement for years of service of Directors of Admissions of 
                    Military and Air Force academies.

           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Extension of certain Reserve officer management authorities.
Sec. 512. Mobilization income insurance program for members of Ready 
                    Reserve.
Sec. 513. Military technician full-time support program for Army and Air 
                    Force reserve components.
Sec. 514. Revisions to Army Guard Combat Reform Initiative to include 
                    Army Reserve under certain provisions and make 
                    certain revisions.
Sec. 515. Active duty associate unit responsibility.
Sec. 516. Leave for members of reserve components performing public 
                    safety duty.
Sec. 517. Department of Defense funding for National Guard participation 
                    in joint disaster and emergency assistance 
                    exercises.

                   Subtitle C--Decorations and Awards

Sec. 521. Award of Purple Heart to persons wounded while held as 
                    prisoners of war before April 25, 1962.
Sec. 522. Authority to award decorations recognizing acts of valor 
                    performed in combat during the Vietnam conflict.
Sec. 523. Military intelligence personnel prevented by secrecy from 
                    being considered for decorations and awards.
Sec. 524. Review regarding upgrading of Distinguished-Service Crosses 
                    and Navy Crosses awarded to Asian-Americans and 
                    Native American Pacific Islanders for World War II 
                    service.
Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon 
                    service in El Salvador.
Sec. 526. Procedure for consideration of military decorations not 
                    previously submitted in timely fashion.

                 Subtitle D--Officer Education Programs

                        Part I--Service Academies

Sec. 531. Revision of service obligation for graduates of the service 
                    academies.
Sec. 532. Nominations to service academies from Commonwealth of the 
                    Northern Marianas Islands.
Sec. 533. Repeal of requirement for athletic director and 
                    nonappropriated fund account for the athletics 
                    programs at the service academies.
Sec. 534. Repeal of requirement for program to test privatization of 
                    service academy preparatory schools.

                 Part II--Reserve Officer Training Corps

Sec. 541. ROTC access to campuses.
Sec. 542. ROTC scholarships for the National Guard.
Sec. 543. Delay in reorganization of Army ROTC regional headquarters 
                    structure.
Sec. 544. Duration of field training or practice cruise required under 
                    the Senior Reserve Officers' Training Corps program.
Sec. 545. Active duty officers detailed to ROTC duty at senior military 
                    colleges to serve as Commandant and Assistant 
                    Commandant of Cadets and as tactical officers.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

Sec. 551. Report concerning appropriate forum for judicial review of 
                    Department of Defense personnel actions.

[[Page 110 STAT. 191]]

Sec. 552. Comptroller General review of proposed Army end strength 
                    allocations.
Sec. 553. Report on manning status of highly deployable support units.
Sec. 554. Review of system for correction of military records.
Sec. 555. Report on the consistency of reporting of fingerprint cards 
                    and final disposition forms to the Federal Bureau of 
                    Investigation.

                        Subtitle F--Other Matters

Sec. 561. Equalization of accrual of service credit for officers and 
                    enlisted members.
Sec. 562. Army Ranger training.
Sec. 563. Separation in cases involving extended confinement.
Sec. 564. Limitations on reductions in medical personnel.
Sec. 565. Sense of Congress concerning personnel tempo rates.
Sec. 566. Separation benefits during force reduction for officers of 
                    commissioned corps of National Oceanic and 
                    Atmospheric Administration.
Sec. 567. Discharge of members of the Armed Forces who have the HIV-1 
                    virus.
Sec. 568. Revision and codification of Military Family Act and Military 
                    Child Care Act.
Sec. 569. Determination of whereabouts and status of missing persons.
Sec. 570. Associate Director of Central Intelligence for Military 
                    Support.

      Subtitle G--Support for Non-Department of Defense Activities

Sec. 571. Repeal of certain civil-military programs.
Sec. 572. Training activities resulting in incidental support and 
                    services for eligible organizations and activities 
                    outside the Department of Defense.
Sec. 573. National Guard civilian youth opportunities pilot program.
Sec. 574. Termination of funding for Office of Civil-Military Programs 
                    in Office of the Secretary of Defense.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1996.
Sec. 602. Limitation on basic allowance for subsistence for members 
                    residing without dependents in Government quarters.
Sec. 603. Election of basic allowance for quarters instead of assignment 
                    to inadequate quarters.
Sec. 604. Payment of basic allowance for quarters to members in pay 
                    grade E-6 who are assigned to sea duty.
Sec. 605. Limitation on reduction of variable housing allowance for 
                    certain members.
Sec. 606. Clarification of limitation on eligibility for family 
                    separation allowance.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse officer 
                    candidates, registered nurses, and nurse 
                    anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses 
                    and special pays.
Sec. 614. Codification and extension of special pay for critically short 
                    wartime health specialists in the Selected Reserves.
Sec. 615. Hazardous duty incentive pay for warrant officers and enlisted 
                    members serving as air weapons controllers.
Sec. 616. Aviation career incentive pay.
Sec. 617. Clarification of authority to provide special pay for nurses.
Sec. 618. Continuous entitlement to career sea pay for crew members of 
                    ships designated as tenders.
Sec. 619. Increase in maximum rate of special duty assignment pay for 
                    enlisted members serving as recruiters.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Repeal of requirement regarding calculation of allowances on 
                    basis of mileage tables.
Sec. 622. Departure allowances.
Sec. 623. Transportation of nondependent child from member's station 
                    overseas after loss of dependent status while 
                    overseas.
Sec. 624. Authorization of dislocation allowance for moves in connection 
                    with base realignments and closures.

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

Sec. 631. Effective date for military retiree cost-of-living adjustments 
                    for fiscal years 1996, 1997, and 1998.

[[Page 110 STAT. 192]]

Sec. 632. Denial of non-regular service retired pay for Reserves 
                    receiving certain court-martial sentences.
Sec. 633. Report on payment of annuities for certain military surviving 
                    spouses.
Sec. 634. Payment of back quarters and subsistence allowances to World 
                    War II veterans who served as guerilla fighters in 
                    the Philippines.
Sec. 635. Authority for relief from previous overpayments under minimum 
                    income widows program.
Sec. 636. Transitional compensation for dependents of members of the 
                    Armed Forces separated for dependent abuse.

                        Subtitle E--Other Matters

Sec. 641. Payment to survivors of deceased members for all leave 
                    accrued.
Sec. 642. Repeal of reporting requirements regarding compensation 
                    matters.
Sec. 643. Recoupment of administrative expenses in garnishment actions.
Sec. 644. Report on extending to junior noncommissioned officers 
                    privileges provided for senior noncommissioned 
                    officers.
Sec. 645. Study regarding joint process for determining location of 
                    recruiting stations.
Sec. 646. Automatic maximum coverage under Servicemen's Group Life 
                    Insurance.
Sec. 647. Termination of Servicemen's Group Life Insurance for members 
                    of the Ready Reserve who fail to pay premiums.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Modification of requirements regarding routine physical 
                    examinations and immunizations under CHAMPUS.
Sec. 702. Correction of inequities in medical and dental care and death 
                    and disability benefits for certain Reserves.
Sec. 703. Medical care for surviving dependents of retired Reserves who 
                    die before age 60.
Sec. 704. Medical and dental care for members of the Selected Reserve 
                    assigned to early deploying units of the Army 
                    Selected Reserve.
Sec. 705. Dental insurance for members of the Selected Reserve.
Sec. 706. Permanent authority to carry out specialized treatment 
                    facility program.

                       Subtitle B--TRICARE Program

Sec. 711. Definition of TRICARE program.
Sec. 712. Priority use of military treatment facilities for persons 
                    enrolled in managed care initiatives.
Sec. 713. Staggered payment of enrollment fees for TRICARE program.
Sec. 714. Requirement of budget neutrality for TRICARE program to be 
                    based on entire program.
Sec. 715. Training in health care management and administration for 
                    TRICARE lead agents.
Sec. 716. Pilot program of individualized residential mental health 
                    services.
Sec. 717. Evaluation and report on TRICARE program effectiveness.
Sec. 718. Sense of Congress regarding access to health care under 
                    TRICARE program for covered beneficiaries who are 
                    medicare eligible.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Delay of termination of status of certain facilities as 
                    Uniformed Services Treatment Facilities.
Sec. 722. Limitation on expenditures to support Uniformed Services 
                    Treatment Facilities.
Sec. 723. Application of CHAMPUS payment rules in certain cases.
Sec. 724. Application of Federal Acquisition Regulation to participation 
                    agreements with Uniformed Services Treatment 
                    Facilities.
Sec. 725. Development of plan for integrating Uniformed Services 
                    Treatment Facilities in managed care programs of 
                    Department of Defense.
Sec. 726. Equitable implementation of uniform cost sharing requirements 
                    for Uniformed Services Treatment Facilities.
Sec. 727. Elimination of unnecessary annual reporting requirement 
                    regarding Uniformed Services Treatment Facilities.

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

Sec. 731. Maximum allowable payments to individual health-care providers 
                    under CHAMPUS.
Sec. 732. Notification of certain CHAMPUS covered beneficiaries of loss 
                    of CHAMPUS eligibility.

[[Page 110 STAT. 193]]

Sec. 733. Personal services contracts for medical treatment facilities 
                    of the Coast Guard.
Sec. 734. Identification of third-party payer situations.
Sec. 735. Redesignation of Military Health Care Account as Defense 
                    Health Program Account and two-year availability of 
                    certain account funds.
Sec. 736. Expansion of financial assistance program for health-care 
                    professionals in reserve components to include 
                    dental specialties.
Sec. 737. Applicability of limitation on prices of pharmaceuticals 
                    procured for Coast Guard.
Sec. 738. Restriction on use of Department of Defense facilities for 
                    abortions.

                        Subtitle E--Other Matters

Sec. 741. Triservice nursing research.
Sec. 742. Termination of program to train military psychologists to 
                    prescribe psychotropic medications.
Sec. 743. Waiver of collection of payments due from certain persons 
                    unaware of loss of CHAMPUS eligibility.
Sec. 744. Demonstration program to train military medical personnel in 
                    civilian shock trauma units.
Sec. 745. Study regarding Department of Defense efforts to determine 
                    appropriate force levels of wartime medical 
                    personnel.
Sec. 746. Report on improved access to military health care for covered 
                    beneficiaries entitled to medicare.
Sec. 747. Report on effect of closure of Fitzsimons Army Medical Center, 
                    Colorado, on provision of care to military 
                    personnel, retired military personnel, and their 
                    dependents.
Sec. 748. Sense of Congress on continuity of health care services for 
                    covered beneficiaries adversely affected by closures 
                    of military medical treatment facilities.
Sec. 749. State recognition of military advance medical directives.

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

                     Subtitle A--Acquisition Reform

Sec. 801. Inapplicability of limitation on expenditure of appropriations 
                    to contracts at or below simplified acquisition 
                    threshold.
Sec. 802. Authority to delegate contracting authority.
Sec. 803. Control in procurements of critical aircraft and ship spare 
                    parts.
Sec. 804. Fees for certain testing services.
Sec. 805. Coordination and communication of defense research activities.
Sec. 806. Addition of certain items to domestic source limitation.
Sec. 807. Encouragement of use of leasing authority.
Sec. 808. Cost reimbursement rules for indirect costs attributable to 
                    private sector work of defense contractors.
Sec. 809. Subcontracts for ocean transportation services.
Sec. 810. Prompt resolution of audit recommendations.
Sec. 811. Test program for negotiation of comprehensive subcontracting 
                    plans.
Sec. 812. Procurement of items for experimental or test purposes.
Sec. 813. Use of funds for acquisition of designs, processes, technical 
                    data, and computer software.
Sec. 814. Independent cost estimates for major defense acquisition 
                    programs.
Sec. 815. Construction, repair, alteration, furnishing, and equipping of 
                    naval vessels.

                        Subtitle B--Other Matters

Sec. 821. Procurement technical assistance programs.
Sec. 822. Defense facility-wide pilot program.
Sec. 823. Treatment of Department of Defense cable television franchise 
                    agreements.
Sec. 824. Extension of pilot mentor-protege program.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Reduction in number of Assistant Secretary of Defense 
                    positions.
Sec. 903. Deferred repeal of various statutory positions and offices in 
                    Office of the Secretary of Defense.
Sec. 904. Redesignation of the position of Assistant to the Secretary of 
                    Defense for Atomic Energy.

[[Page 110 STAT. 194]]

Sec. 905. Joint Requirements Oversight Council.
Sec. 906. Restructuring of Department of Defense acquisition 
                    organization and workforce.
Sec. 907. Report on Nuclear Posture Review and on plans for nuclear 
                    weapons management in event of abolition of 
                    Department of Energy.
Sec. 908. Redesignation of Advanced Research Projects Agency.

                    Subtitle B--Financial Management

Sec. 911. Transfer authority regarding funds available for foreign 
                    currency fluctuations.
Sec. 912. Defense Modernization Account.
Sec. 913. Designation and liability of disbursing and certifying 
                    officials.
Sec. 914. Fisher House trust funds.
Sec. 915. Limitation on use of authority to pay for emergency and 
                    extraordinary expenses.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Improved funding mechanisms for unbudgeted operations.
Sec. 1004. Operation Provide Comfort.
Sec. 1005. Operation Enhanced Southern Watch.
Sec. 1006. Authority for obligation of certain unauthorized fiscal year 
                      1995 defense appropriations.
Sec. 1007. Authorization of prior emergency supplemental appropriations 
                      for fiscal year 1995.
Sec. 1008. Authorization reductions to reflect savings from revised 
                      economic assumptions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Iowa class battleships.
Sec. 1012. Transfer of naval vessels to certain foreign countries.
Sec. 1013. Contract options for LMSR vessels.
Sec. 1014. National Defense Reserve Fleet.
Sec. 1015. Naval salvage facilities.
Sec. 1016. Vessels subject to repair under phased maintenance contracts.
Sec. 1017. Clarification of requirements relating to repairs of vessels.
Sec. 1018. Sense of Congress concerning naming of amphibious ships.
Sec. 1019. Sense of Congress concerning naming of naval vessel.
Sec. 1020. Transfer of riverine patrol craft.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support 
                      of drug interdiction and counter-drug activities 
                      of the National Guard.

                     Subtitle D--Civilian Personnel

Sec. 1031. Management of Department of Defense civilian personnel.
Sec. 1032. Conversion of military positions to civilian positions.
Sec. 1033. Elimination of 120-day limitation on details of certain 
                      employees.
Sec. 1034. Authority for civilian employees of Department of Defense to 
                      participate voluntarily in reductions in force.
Sec. 1035. Authority to pay severance payments in lump sums.
Sec. 1036. Continued health insurance coverage.
Sec. 1037. Revision of authority for appointments of involuntarily 
                      separated military reserve technicians.
Sec. 1038. Wearing of uniform by National Guard technicians.
Sec. 1039. Military leave for military reserve technicians for certain 
                      duty overseas.
Sec. 1040. Personnel actions involving employees of nonappropriated fund 
                      instrumentalities.
Sec. 1041. Coverage of nonappropriated fund employees under authority 
                      for flexible and compressed work schedules.
Sec. 1042. Limitation on provision of overseas living quarters 
                      allowances for nonappropriated fund 
                      instrumentality employees.
Sec. 1043. Elections relating to retirement coverage.
Sec. 1044. Extension of temporary authority to pay civilian employees 
                      with respect to the evacuation from Guantanamo, 
                      Cuba.

            Subtitle E--Miscellaneous Reporting Requirements

Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard 
                      and Reserve components.

[[Page 110 STAT. 195]]

Sec. 1052. Report on desirability and feasibility of providing authority 
                      for use of funds derived from recovered losses 
                      resulting from contractor fraud.
Sec. 1053. Report of national policy on protecting the national 
                      information infrastructure against strategic 
                      attacks.
Sec. 1054. Report on Department of Defense boards and commissions.
Sec. 1055. Date for submission of annual report on special access 
                      programs.

   Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                               Authorities

Sec. 1061. Repeal of miscellaneous provisions of law.
Sec. 1062. Reports required by title 10, United States Code.
Sec. 1063. Reports required by defense authorization and appropriations 
                      Acts.
Sec. 1064. Reports required by other provisions of law.

          Subtitle G--Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health 
                      Sciences.
Sec. 1072. Additional graduate schools and programs at Uniformed 
                      Services University of the Health Sciences.
Sec. 1073. Funding for adult education programs for military personnel 
                      and dependents outside the United States.
Sec. 1074. Assistance to local educational agencies that benefit 
                      dependents of members of the Armed Forces and 
                      Department of Defense civilian employees.
Sec. 1075. Sharing of personnel of Department of Defense domestic 
                      dependent schools and defense dependents' 
                      education system.
Sec. 1076. Increase in reserve component Montgomery GI Bill educational 
                      assistance allowance with respect to skills or 
                      specialties for which there is a critical shortage 
                      of personnel.
Sec. 1077. Date for annual report on reserve component Montgomery GI 
                      Bill educational assistance program.
Sec. 1078. Scope of education programs of Community College of the Air 
                      Force.
Sec. 1079. Amendments to education loan repayment programs.

                        Subtitle H--Other Matters

Sec. 1081. National defense technology and industrial base, defense 
                      reinvestment, and defense conversion programs.
Sec. 1082. Ammunition industrial base.
Sec. 1083. Policy concerning excess defense industrial capacity.
Sec. 1084. Sense of Congress concerning access to secondary school 
                      student information for recruiting purposes.
Sec. 1085. Disclosure of information concerning unaccounted for United 
                      States personnel from the Korean Conflict, the 
                      Vietnam era, and the Cold War.
Sec. 1086. Operational support airlift aircraft fleet.
Sec. 1087. Civil Reserve Air Fleet.
Sec. 1088. Damage or loss to personal property due to emergency 
                      evacuation or extraordinary circumstances.
Sec. 1089. Authority to suspend or terminate collection actions against 
                      deceased members.
Sec. 1090. Check cashing and exchange transactions for dependents of 
                      United States Government personnel.
Sec. 1091. Designation of National Maritime Center.
Sec. 1092. Sense of Congress regarding historic preservation of Midway 
                      Islands.
Sec. 1093. Sense of Senate regarding Federal spending.
Sec. 1094. Extension of authority for vessel war risk insurance.

               TITLE XI--UNIFORM CODE OF MILITARY JUSTICE

Sec. 1101. Short title.
Sec. 1102. References to Uniform Code of Military Justice.

                          Subtitle A--Offenses

Sec. 1111. Refusal to testify before court-martial.
Sec. 1112. Flight from apprehension.
Sec. 1113. Carnal knowledge.

                          Subtitle B--Sentences

Sec. 1121. Effective date for forfeitures of pay and allowances and 
                      reductions in grade by sentence of court-martial.
Sec. 1122. Required forfeiture of pay and allowances during confinement.
Sec. 1123. Deferment of confinement.

               Subtitle C--Pretrial and Post-Trial Actions

[[Page 110 STAT. 196]]

Sec. 1131. Article 32 investigations.
Sec. 1132. Submission of matters to the convening authority for 
                      consideration.
Sec. 1133. Commitment of accused to treatment facility by reason of lack 
                      of mental capacity or mental responsibility.

                      Subtitle D--Appellate Matters

Sec. 1141. Appeals by the United States.
Sec. 1142. Repeal of termination of authority for Chief Justice of the 
                      United States to designate Article III judges for 
                      temporary service on Court of Appeals for the 
                      Armed Forces.

                        Subtitle E--Other Matters

Sec. 1151. Advisory committee on criminal law jurisdiction over 
                      civilians accompanying the Armed Forces in time of 
                      armed conflict.
Sec. 1152. Time after accession for initial instruction in the Uniform 
                      Code of Military Justice.
Sec. 1153. Technical amendment.

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

Sec. 1201. Specification of Cooperative Threat Reduction programs.
Sec. 1202. Fiscal year 1996 funding allocations.
Sec. 1203. Prohibition on use of funds for peacekeeping exercises and 
                      related activities with Russia.
Sec. 1204. Revision to authority for assistance for weapons destruction.
Sec. 1205. Prior notice to Congress of obligation of funds.
Sec. 1206. Report on accounting for United States assistance.
Sec. 1207. Limitation on assistance to nuclear weapons scientists of 
                      former Soviet Union.
Sec. 1208. Limitations relating to offensive biological warfare program 
                      of Russia.
Sec. 1209. Limitation on use of funds for chemical weapons destruction 
                      facility.

              TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                   Subtitle A--Peacekeeping Provisions

Sec. 1301. Limitation on use of Department of Defense funds for United 
                      States share of costs of United Nations 
                      peacekeeping activities.

              Subtitle B--Humanitarian Assistance Programs

Sec. 1311. Overseas humanitarian, disaster, and civic aid programs.
Sec. 1312. Humanitarian assistance.
Sec. 1313. Landmine clearance program.

            Subtitle C--Arms Exports and Military Assistance

Sec. 1321. Defense export loan guarantees.
Sec. 1322. National security implications of United States export 
                      control policy.
Sec. 1323. Department of Defense review of export licenses for certain 
                      biological pathogens.
Sec. 1324. Annual reports on improving export control mechanisms and on 
                      military assistance.
Sec. 1325. Report on personnel requirements for control of transfer of 
                      certain weapons.

  Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                             Allies and NATO

Sec. 1331. Accounting for burdensharing contributions.
Sec. 1332. Authority to accept contributions for expenses of relocation 
                      within host nation of United States Armed Forces 
                      overseas.
Sec. 1333. Revised goal for allied share of costs for United States 
                      installations in Europe.
Sec. 1334. Exclusion of certain forces from European end strength 
                      limitation.
Sec. 1335. Cooperative research and development agreements with NATO 
                      organizations.
Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

                        Subtitle E--Other Matters

Sec. 1341. Prohibition on financial assistance to terrorist countries.
Sec. 1342. Judicial assistance to the International Tribunal for 
                      Yugoslavia and to the International Tribunal for 
                      Rwanda.

[[Page 110 STAT. 197]]

Sec. 1343. Semiannual reports concerning United States-People's Republic 
                      of China Joint Defense Conversion Commission.

                     TITLE XIV--ARMS CONTROL MATTERS

Sec. 1401. Revision of definition of landmine for purposes of landmine 
                      export moratorium.
Sec. 1402. Reports on moratorium on use by Armed Forces of antipersonnel 
                      landmines.
Sec. 1403. Extension and amendment of counter-proliferation authorities.
Sec. 1404. Limitation on retirement or dismantlement of strategic 
                      nuclear delivery systems.
Sec. 1405. Congressional findings and sense of Congress concerning 
                      treaty violations.
Sec. 1406. Sense of Congress on ratification of Chemical Weapons 
                      Convention and START II Treaty.
Sec. 1407. Implementation of arms control agreements.
Sec. 1408. Iran and Iraq arms nonproliferation.

               TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

Sec. 1501. Amendments related to Reserve Officer Personnel Management 
                      Act.
Sec. 1502. Amendments to reflect name change of Committee on Armed 
                      Services of the House of Representatives.
Sec. 1503. Miscellaneous amendments to title 10, United States Code.
Sec. 1504. Miscellaneous amendments to annual defense authorization 
                      Acts.
Sec. 1505. Miscellaneous amendments to other laws.
Sec. 1506. Coordination with other amendments.

TITLE XVI--CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS 
                                 SAFETY

Sec. 1601. Short title.

         Subtitle A--Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.
Sec. 1612. Conduct of Civilian Marksmanship Program.
Sec. 1613. Eligibility for participation in Civilian Marksmanship 
                      Program.
Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the 
                      Corporation.
Sec. 1615. Transfer of firearms and ammunition from the Army to the 
                      Corporation.
Sec. 1616. Reservation by the Army of firearms and ammunition for the 
                      Corporation.
Sec. 1617. Army logistical support for the program.
Sec. 1618. General authorities of the Corporation.
Sec. 1619. Distribution of Corporate assets in event of dissolution.

                   Subtitle B--Transitional Provisions

Sec. 1621. Transfer of funds and property to the Corporation.
Sec. 1622. Continuation of eligibility for certain civil service 
                      benefits for former Federal employees of Civilian 
                      Marksmanship Program.
Sec. 1623. Certification of completion of transition.
Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship 
                      Program by the Army.

            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.

                            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. Revision of fiscal year 1995 authorization of appropriations 
                      to clarify availability of funds for large 
                      anechoic chamber facility, Patuxent River Naval 
                      Warfare Center, Maryland.

[[Page 110 STAT. 198]]

Sec. 2206. Authority to carry out land acquisition project, Hampton 
                      Roads, Virginia.
Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.
Sec. 2208. Acquisition or construction of military family housing in 
                      vicinity of San Diego, California.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                      projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Retention of accrued interest on funds deposited for 
                      construction of family housing, Scott Air Force 
                      Base, Illinois.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
                      projects.
Sec. 2402. Military family housing private investment.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Limitations on use of Department of Defense Base Closure 
                      Account 1990.
Sec. 2407. Modification of authority to carry out fiscal year 1995 
                      projects.
Sec. 2408. Reduction in amounts authorized to be appropriated for fiscal 
                      year 1994 contingency construction projects.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

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. Reduction in amount authorized to be appropriated for fiscal 
                      year 1994 Air National Guard Projects.
Sec. 2603. Correction in authorized uses of funds for Army National 
                      Guard projects in Mississippi.

         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 1993 
                      projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1992 
                      projects.

                    TITLE XXVIII--GENERAL PROVISIONS

          Subtitle A--Military Housing Privatization Initiative

Sec. 2801. Alternative authority for construction and improvement of 
                      military housing.
Sec. 2802. Expansion of authority for limited partnerships for 
                      development of military family housing.

  Subtitle B--Other Military Construction Program and Military Family 
                             Housing Changes

Sec. 2811. Special threshold for unspecified minor construction projects 
                      to correct life, health, or safety deficiencies.
Sec. 2812. Clarification of scope of unspecified minor construction 
                      authority.
Sec. 2813. Temporary authority to waive net floor area limitation for 
                      family housing acquired in lieu of construction.
Sec. 2814. Reestablishment of authority to waive net floor area 
                      limitation on acquisition by purchase of certain 
                      military family housing.
Sec. 2815. Temporary authority to waive limitations on space by pay 
                      grade for military family housing units.
Sec. 2816. Rental of family housing in foreign countries.
Sec. 2817. Clarification of scope of report requirement on cost 
                      increases under contracts for military family 
                      housing construction.
Sec. 2818. Authority to convey damaged or deteriorated military family 
                      housing.
Sec. 2819. Energy and water conservation savings for the Department of 
                      Defense.
Sec. 2820. Extension of authority to enter into leases of land for 
                      special operations activities.

[[Page 110 STAT. 199]]

Sec. 2821. Disposition of amounts recovered as a result of damage to 
                      real property.
Sec. 2822. Pilot program to provide interest rate buy down authority on 
                      loans for housing within housing shortage areas at 
                      military installations.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2831. Deposit of proceeds from leases of property located at 
                      installations being closed or realigned.
Sec. 2832. In-kind consideration for leases at installations to be 
                      closed or realigned.
Sec. 2833. Interim leases of property approved for closure or 
                      realignment.
Sec. 2834. Authority to lease property requiring environmental 
                      remediation at
                      installations approved for closure or realignment.
Sec. 2835. Final funding for Defense Base Closure and Realignment 
                      Commission.
Sec. 2836. Exercise of authority delegated by the Administrator of 
                      General Services.
Sec. 2837. Lease back of property disposed from installations approved 
                      for closure or realignment.
Sec. 2838. Improvement of base closure and realignment process regarding 
                      disposal of property.
Sec. 2839. Agreements for certain services at installations being 
                      closed.
Sec. 2840. Authority to transfer property at military installations to 
                      be closed to persons who construct or provide 
                      military family housing.
Sec. 2841. Use of single base closure authorities for disposal of 
                      property and facilities at Fort Holabird, 
                      Maryland.

                 Subtitle D--Land Conveyances Generally

                        Part I--Army Conveyances

Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.
Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.
Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens 
                      Military Reservation, Massachusetts.
Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.
Sec. 2855. Land exchange, Fort Lewis, Washington.
Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.
Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount Carmel, 
                      Tennessee.
Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
                      Indiana.
Sec. 2859. Land conveyance, Fort Ord, California.
Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin, 
                      California.
Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.
Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan, 
                      Illinois.
Sec. 2863. Land conveyance, property underlying Cummins Apartment 
                      Complex, Fort Holabird, Maryland.
Sec. 2864. Modification of existing land conveyance, Army property, 
                      Hamilton Air Force Base, California.

                        Part II--Navy Conveyances

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve 
                      Plant, Calverton, New York.
Sec. 2866. Modification of land conveyance, Naval Weapons Industrial 
                      Reserve Plant, Calverton, New York.
Sec. 2867. Land conveyance alternative to existing lease authority, 
                      Naval Supply Center, Oakland, California.
Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant, 
                      McGregor, Texas.
Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis, 
                      Tennessee.
Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.
Sec. 2871. Land conveyance, Naval Communications Station, Stockton, 
                      California.
Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air 
                      Station, Miramar, California.

                     Part III--Air Force Conveyances

Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South 
                      Carolina.
Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.
Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.
Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.
Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

            Subtitle E--Land Conveyances Involving Utilities

[[Page 110 STAT. 200]]

Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New 
                      Jersey.
Sec. 2882. Conveyance of water and wastewater treatment plants, Fort 
                      Gordon, Georgia.
Sec. 2883. Conveyance of electricity distribution system, Fort Irwin, 
                      California.
Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

                        Subtitle F--Other Matters

Sec. 2891. Authority to use funds for certain educational purposes.
Sec. 2892. Department of Defense Laboratory Revitalization Demonstration 
                      Program.
Sec. 2893. Authority for Port Authority of State of Mississippi to use 
                      Navy property at Naval Construction Battalion 
                      Center, Gulfport, Mississippi.
Sec. 2894. Prohibition on joint use of Naval Air Station and Marine 
                      Corps Air Station, Miramar, California.
Sec. 2895. Report regarding Army water craft support facilities and 
                      activities.
Sec. 2896. Residual value reports.
Sec. 2897. Sense of Congress and report regarding Fitzsimons Army 
                      Medical Center, Colorado.

  TITLE XXIX--LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION PLANT, 
                                ILLINOIS

Sec. 2901. Short title.
Sec. 2902. Definitions.

   Subtitle A--Conversion of Joliet Army Ammunition Plant to Midewin 
                       National Tallgrass Prairie

Sec. 2911. Principles of transfer.
Sec. 2912. Transfer of management responsibilities and jurisdiction over 
                      Arsenal.
Sec. 2913. Responsibility and liability.

Sec. 2914. Establishment and administration of Midewin National 
           Tallgrass Prairie.

Sec. 2915. Special management requirements for Midewin National 
                      Tallgrass Prairie.
Sec. 2916. Special transfer rules for certain Arsenal parcels intended 
                      for MNP.

  Subtitle B--Other Land Conveyances Involving Joliet Army Ammunition 
                                  Plant

Sec. 2921. Conveyance of certain real property at Arsenal for a national 
                      cemetery.
Sec. 2922. Conveyance of certain real property at Arsenal for a county 
                      landfill.
Sec. 2923. Conveyance of certain real property at Arsenal for industrial 
                      parks.

                  Subtitle C--Miscellaneous Provisions

Sec. 2931. Degree of environmental cleanup.
Sec. 2932. Retention of property used for environmental cleanup.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

[[Page 110 STAT. 201]]

Sec. 3128. Availability of funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Authority to conduct program relating to fissile materials.
Sec. 3132. National Ignition Facility.
Sec. 3133. Tritium production program.
Sec. 3134. Payment of penalties.
Sec. 3135. Fissile materials disposition.
Sec. 3136. Tritium recycling.
Sec. 3137. Manufacturing infrastructure for refabrication and 
                      certification of nuclear weapons stockpile.
Sec. 3138. Hydronuclear experiments.
Sec. 3139. Limitation on authority to conduct hydronuclear tests.
Sec. 3140. Fellowship program for development of skills critical to the 
                      Department of Energy nuclear weapons complex.
Sec. 3141. Limitation on use of funds for certain research and 
                      development purposes.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
                      spent nuclear fuel rods.
Sec. 3143. Protection of workers at nuclear weapons facilities.
Sec. 3144. Department of Energy Declassification Productivity 
                      Initiative.

                        Subtitle D--Other Matters

Sec. 3151. Report on foreign tritium purchases.
Sec. 3152. Study on nuclear test readiness postures.
Sec. 3153. Master plan for the certification, stewardship, and 
                      management of warheads in the nuclear weapons 
                      stockpile.
Sec. 3154. Prohibition on international inspections of Department of 
                      Energy facilities unless protection of restricted 
                      data is certified.
Sec. 3155. Review of certain documents before declassification and 
                      release.
Sec. 3156. Accelerated schedule for environmental restoration and waste 
                      management activities.
Sec. 3157. Sense of Congress regarding certain environmental restoration 
                      requirements.
Sec. 3158. Responsibility for Defense Programs Emergency Response 
                      Program.
Sec. 3159. Requirements for Department of Energy weapons activities 
                      budgets for fiscal years after fiscal year 1996.
Sec. 3160. Report on hydronuclear testing.
Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los 
                      Alamos, New Mexico.
Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of chromite and manganese ores and chromium ferro 
                      and manganese metal electrolytic.
Sec. 3304. Restrictions on disposal of manganese ferro.
Sec. 3305. Titanium initiative to support battle tank upgrade program.

                     Subtitle B--Programmatic Change

Sec. 3311. Transfer of excess defense-related materials to stockpile for 
                      disposal.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

         Subtitle A--Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
                      year 1996.
Sec. 3403. Extension of operating contract for Naval Petroleum Reserve 
                      Num
                      bered 1.

               Subtitle B--Sale of Naval Petroleum Reserve

Sec. 3411. Definitions.
Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.
Sec. 3413. Effect of sale of reserve.

[[Page 110 STAT. 202]]

Sec. 3414. Conditions on sale process.
Sec. 3415. Treatment of State of California claim regarding reserve.
Sec. 3416. Study of future of other naval petroleum reserves.

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Expenditures in accordance with other laws.

   Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of Commission as Government corporation.
Sec. 3523. Supervisory Board.
Sec. 3524. General and specific powers of Commission.
Sec. 3525. Congressional review of budget.
Sec. 3526. Audits.
Sec. 3527. Prescription of measurement rules and rates of tolls.
Sec. 3528. Procedures for changes in rules of measurement and rates of 
                      tolls.
Sec. 3529. Miscellaneous technical amendments.
Sec. 3530. Conforming amendment to title 31, United States Code.

                 DIVISION D--FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

                         TITLE XLI--COMPETITION

Sec. 4101. Efficient competition.
Sec. 4102. Efficient approval procedures.
Sec. 4103. Efficient competitive range determinations.
Sec. 4104. Preaward debriefings.
Sec. 4105. Design-build selection procedures.

                      TITLE XLII--COMMERCIAL ITEMS

Sec. 4201. Commercial item exception to requirement for certified cost 
                      or pricing data.
Sec. 4202. Application of simplified procedures to certain commercial 
                      items.
Sec. 4203. Inapplicability of certain procurement laws to commercially 
                      available off-the-shelf items.
Sec. 4204. Amendment of commercial items definition.
Sec. 4205. Inapplicability of cost accounting standards to contracts and 
                      subcontracts for commercial items.

                TITLE XLIII--ADDITIONAL REFORM PROVISIONS

          Subtitle A--Additional Acquisition Reform Provisions

Sec. 4301. Elimination of certain certification requirements.
Sec. 4302. Authorities conditioned on FACNET capability.
Sec. 4303. International competitiveness.
Sec. 4304. Procurement integrity.
Sec. 4305. Further acquisition streamlining provisions.
Sec. 4306. Value engineering for Federal agencies.
Sec. 4307. Acquisition workforce.
Sec. 4308. Demonstration project relating to certain personnel 
                      management policies and procedures.
Sec. 4309. Cooperative purchasing.
Sec. 4310. Procurement notice technical amendment.
Sec. 4311. Micro-purchases without competitive quotations.

                    Subtitle B--Technical Amendments

Sec. 4321. Amendments related to Federal Acquisition Streamlining Act of 
                      1994.
Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

             TITLE XLIV--EFFECTIVE DATES AND IMPLEMENTATION

Sec. 4401. Effective date and applicability.
Sec. 4402. Implementing regulations.

          DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

Sec. 5001. Short title.

[[Page 110 STAT. 203]]

Sec. 5002. Definitions.

   TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                      Subtitle A--General Authority

Sec. 5101. Repeal of central authority of the Administrator of General 
                      Services.

       Subtitle B--Director of the Office of Management and Budget

Sec. 5111. Responsibility of Director.
Sec. 5112. Capital planning and investment control.
Sec. 5113. Performance-based and results-based management.

                     Subtitle C--Executive Agencies

Sec. 5121. Responsibilities.
Sec. 5122. Capital planning and investment control.
Sec. 5123. Performance and results-based management.
Sec. 5124. Acquisitions of information technology.
Sec. 5125. Agency Chief Information Officer.
Sec. 5126. Accountability.
Sec. 5127. Significant deviations.
Sec. 5128. Interagency support.

                   Subtitle D--Other Responsibilities

Sec. 5131. Responsibilities regarding efficiency, security, and privacy 
                      of Federal computer systems.
Sec. 5132. Sense of Congress.

                  Subtitle E--National Security Systems

Sec. 5141. Applicability to national security systems.
Sec. 5142. National security system defined.

      TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Sec. 5201. Procurement procedures.
Sec. 5202. Incremental acquisition of information technology.

      TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                  Subtitle A--Conduct of Pilot Programs

Sec. 5301. Authority to conduct pilot programs.
Sec. 5302. Evaluation criteria and plans.
Sec. 5303. Report.
Sec. 5304. Recommended legislation.
Sec. 5305. Rule of construction.

                   Subtitle B--Specific Pilot Programs

Sec. 5311. Share-in-savings pilot program.
Sec. 5312. Solutions-based contracting pilot program.

     TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

Sec. 5401. On-line multiple award schedule contracting.
Sec. 5402. Identification of excess and surplus computer equipment.
Sec. 5403. Access of certain information in information systems to the 
                      directory established under section 4101 of title 
                      44, United States Code.

   TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

Sec. 5501. Period for processing protests.
Sec. 5502. Availability of funds following GAO resolution of challenge 
                      to contracting action.

              TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

Sec. 5601. Amendments to title 10, United States Code.
Sec. 5602. Amendments to title 28, United States Code.
Sec. 5603. Amendment to title 31, United States Code.

[[Page 110 STAT. 204]]

Sec. 5604. Amendments to title 38, United States Code.
Sec. 5605. Provisions of title 44, United States Code, relating to 
                      paperwork reduction.
Sec. 5606. Amendment to title 49, United States Code.
Sec. 5607. Other laws.
Sec. 5608. Clerical amendments.

      TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF 
                              CONSTRUCTION

Sec. 5701. Effective date.
Sec. 5702. Savings provisions.
Sec. 5703. Rules of construction.

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.

SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

    In the case of any provision of this Act, or any amendment made by a 
provision of this Act, requiring the submission of a report to Congress 
(or any committee of Congress), that report shall be submitted not later 
than the later of--
            (1) the date established for submittal of the report in such 
        provision or amendment; or
            (2) the date that is 45 days after the date of the enactment 
        of this Act.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for procurement for the Army as follows:
            (1) For aircraft, $1,558,805,000.
            (2) For missiles, $865,555,000.
            (3) For weapons and tracked combat vehicles, $1,652,745,000.
            (4) For ammunition, $1,093,991,000.
            (5) For other procurement, $2,763,443,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 1996 for procurement for the Navy as follows:
            (1) For aircraft, $4,572,394,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,659,827,000.
            (3) For shipbuilding and conversion, $6,643,958,000.
            (4) For other procurement, $2,414,771,000.

[[Page 110 STAT. 205]]

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1996 for procurement for the Marine Corps in the amount 
of $458,947,000.
    (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 $430,053,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for procurement for the Air Force as follows:
            (1) For aircraft, $7,349,783,000.
            (2) For missiles, $2,938,883,000.
            (3) For ammunition, $343,848,000.
            (4) For other procurement, $6,268,430,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for Defense-wide procurement in the amount of $2,124,379,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
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, $160,000,000.
            (2) For the Air National Guard, $255,000,000.
            (3) For the Army Reserve, $85,700,000.
            (4) For the Naval Reserve, $67,000,000.
            (5) For the Air Force Reserve, $135,600,000.
            (6) For the Marine Corps Reserve, $73,700,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for procurement for the Inspector General of the Department of Defense 
in the amount of $1,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1996 
the amount of $672,250,000 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 1996 
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 $288,033,000.

[[Page 110 STAT. 206]]

                        Subtitle B--Army Programs

SEC. 111. PROCUREMENT OF OH-58D ARMED KIOWA WARRIOR HELICOPTERS.

    The prohibition in section 133(a)(2) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1383) does not apply to the obligation of funds in amounts not 
to exceed $140,000,000 for the procurement of not more than 20 OH-58D 
Armed Kiowa Warrior aircraft from funds appropriated for fiscal year 
1996 pursuant to section 101.
SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

    Subsection (j) of section 21 of the Arms Export Control Act (22 
U.S.C. 2761) is repealed.

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

    The Secretary of the Army may, in accordance with section 2306b of 
title 10, United States Code, enter into multiyear procurement contracts 
for procurement of the following:
            (1) AH-64D Longbow Apache attack helicopters.
            (2) UH-60 Black Hawk utility helicopters.

SEC. 114. REPORT ON AH-64D ENGINE UPGRADES.

    No later than February 1, 1996, the Secretary of the Army shall 
submit to Congress a report on plans to procure T700-701C engine upgrade 
kits for Army AH-64D helicopters. The report shall include--
            (1) a plan to provide for the upgrade of all Army AH-64D 
        helicopters with T700-701C engine kits commencing in fiscal year 
        1996; and
            (2) a detailed timeline and statement of funding 
        requirements for the engine upgrade program described in 
        paragraph (1).

SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED MULTIYEAR 
            PROCUREMENT AUTHORITY FOR ARMY SMALL ARMS PROCUREMENT.

    (a) Requirement.--The Secretary of the Army (subject to the 
provision of authority in an appropriations Act) shall enter into a 
multiyear procurement contract during fiscal year 1997 in accordance 
with section 115(b)(2) of the National Defense Authorization for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2681).
    (b) Technical Amendment.--Section 115(b)(1) of the National Defense 
Authorization for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2681) 
is amended by striking out ``2306(h)'' and inserting in lieu thereof 
``2306b''.

                        Subtitle C--Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

    (a) Amounts Authorized.--(1) Of the amount authorized by section 102 
to be appropriated for Shipbuilding and Conversion, Navy, for fiscal 
year 1996--

[[Page 110 STAT. 207]]

            (A) $700,000,000 is available for construction of the third 
        vessel (designated SSN-23) in the Seawolf attack submarine 
        class, which shall be the final vessel in that class; and
            (B) $804,498,000 is available for long-lead and advance 
        construction and procurement of components for construction of 
        the fiscal year 1998 and fiscal year 1999 submarines (previously 
        designated by the Navy as the New Attack Submarine), of which--
                    (i) $704,498,000 shall be available for long-lead 
                and advance construction and procurement for the fiscal 
                year 1998 submarine, which shall be built by Electric 
                Boat Division; and
                    (ii) $100,000,000 shall be available for long-lead 
                and advance construction and procurement for the fiscal 
                year 1999 submarine, which shall be built by Newport 
                News Shipbuilding.

    (2) Of the amount authorized by section 201(2), $10,000,000 shall be 
available only for participation of Newport News Shipbuilding in the 
design of the submarine previously designated by the Navy as the New 
Attack Submarine.
    (b) Competition, Report, and Budget Revision Limitations.--(1) Of 
the amounts specified in subsection (a)(1), not more than $200,000,000 
may be obligated or expended 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 
procurement of nuclear attack submarines to be constructed beginning--
            (A) after fiscal year 1999, or
            (B) if four submarines are procured as provided for in the 
        plan described in subsection (c), after fiscal year 2001,

will be under one or more contracts that are entered into after 
competition between potential competitors (as defined in subsection (k)) 
in which the Secretary solicits competitive proposals and awards the 
contract or contracts on the basis of price.
    (2) Of the amounts specified in subsection (a)(1), not more than 
$1,000,000,000 may be obligated or expended until the Secretary of 
Defense, not later than March 15, 1996, accomplishes each of the 
following:
            (A) Submits to the Committee on Armed Services of the Senate 
        and the Committee on National Security of the House of 
        Representatives in accordance with subsection (c) the plan 
        required by that subsection for a program to produce a more 
        capable, less expensive nuclear attack submarine than the 
        submarine design previously designated by the Navy as the New 
        Attack Submarine.
            (B) Notwithstanding any other provision of law, or the 
        funding level in the President's budget for each year after 
        fiscal year 1996, the Under Secretary of Defense (Comptroller) 
        shall incorporate the costs of the plan required by subsection 
        (c) in the Future Years Defense Program (FYDP) even if the total 
        cost of that Program exceeds the President's budget.
            (C) Directs that the Under Secretary of Defense for 
        Acquisition and Technology conduct oversight over the 
        development and improvement of the nuclear attack submarine 
        program of the Navy. Officials of the Department of the Navy 
        exercising management oversight of the program shall report to 
        the Under

[[Page 110 STAT. 208]]

        Secretary of Defense for Acquisition and Technology with respect 
        to that program.

    (c) Plan for Fiscal Year 1998, 1999, 2000, and 2001 Submarines.--(1) 
The Secretary of Defense shall, not later than March 15, 1996, develop 
(and submit to the committees specified in subsection (b)(2)(A)) a 
detailed plan for development of a program that will lead to production 
of a more capable, less expensive submarine than the submarine 
previously designated as the New Attack Submarine.
    (2) As part of such plan, the Secretary shall provide for a program 
for the design, development, and procurement of four nuclear attack 
submarines to be procured during fiscal years 1998 through 2001, the 
purpose of which shall be to develop and demonstrate new technologies 
that will result in each successive submarine of those four being a more 
capable and more affordable submarine than the submarine that preceded 
it. The program shall be structured so that--
            (A) one of the four submarines is to be constructed with 
        funds appropriated for each fiscal year from fiscal year 1998 
        through fiscal year 2001;
            (B) in order to ensure flexibility for innovation, the 
        fiscal year 1998 and the fiscal year 2000 submarines are to be 
        constructed by the Electric Boat Division and the fiscal year 
        1999 and the fiscal year 2001 submarines are to be constructed 
        by Newport News Shipbuilding;
            (C) the design designated by the Navy for the submarine 
        previously designated as the New Attack Submarine will be used 
        as the base design by both contractors;
            (D) each contractor shall be called upon to propose 
        improvements, including design improvements, for each successive 
        submarine as new and better technology is demonstrated and 
        matures so that--
                    (i) each successive submarine is more capable and 
                more affordable; and
                    (ii) the design for a future class of nuclear attack 
                submarines will incorporate the latest, best, and most 
                affordable technology; and
            (E) the fifth and subsequent nuclear attack submarines to be 
        built after the SSN-23 submarine shall be procured as required 
        by subsection (b)(1).

    (3) The plan under paragraph (1) shall--
            (A) set forth a program to accomplish the design, 
        development, and construction of the four submarines taking 
        maximum advantage of a streamlined acquisition process, as 
        provided under subsection (d);
            (B) culminate in selection of a design for a next submarine 
        for serial production not earlier than fiscal year 2003, with 
        such submarine to be procured as required by subsection (b)(1);
            (C) identify advanced technologies that are in various 
        phases of research and development, as well as those that are 
        commercially available off-the-shelf, that are candidates to be 
        incorporated into the plan to design, develop, and procure the 
        submarines;
            (D) designate the fifth submarine to be procured as the lead 
        ship in the next generation submarine class, unless the 
        Secretary of the Navy, in consultation with the special 
        submarine review panel described in subsection (f), determines

[[Page 110 STAT. 209]]

        that more submarines should be built before the design of the 
        new class of submarines is fixed, in which case each such 
        additional submarine shall be procured in the same manner as is 
        required by subsection (b)(1); and
            (E) identify the impact of the submarine program described 
        in paragraph (1) on the remainder of the appropriation account 
        known as ``Shipbuilding and Conversion, Navy'', as such impact 
        relates to--
                    (i) force structure levels required by the October 
                1993 Department of Defense report entitled ``Report on 
                the Bottom-Up Review'';
                    (ii) force structure levels required by the 1995 
                report on the Surface Ship Combatant Study that was 
                carried out for the Department of Defense; and
                    (iii) the funding requirements for submarine 
                construction, as a percentage of the total ship 
                construction account, for each fiscal year throughout 
                the FYDP.

    (4) As part of such plan, the Secretary shall provide--
            (A) cost estimates and schedules for developing new 
        technologies that may be used to make submarines more capable 
        and more affordable; and
            (B) an analysis of significant risks associated with 
        fielding the new technologies on the schedule proposed by the 
        Secretary and significant increased risks that are likely to be 
        incurred by accelerating that schedule.

    (d) Streamlined Acquisition Process.--The Secretary of Defense shall 
prescribe and use streamlined acquisition policies and procedures to 
reduce the cost and increase the efficiency of the submarine program 
under this section.
    (e) Annual Revisions to Plan.--The Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives an annual update to the plan 
required to be submitted under subsection (b). Each such update shall be 
submitted concurrent with the President's budget submission to Congress 
for each of fiscal years 1998 through 2002.
    (f) Special Submarine Review Panel.--(1) The plan under subsection 
(c) and each annual update under subsection (e) shall be reviewed by a 
special bipartisan congressional panel working with the Navy. The panel 
shall consist of three members of the Committee on Armed Services of the 
Senate, who shall be designated by the chairman of that committee, and 
three members of the Committee on National Security of the House of 
Representatives, who shall be designated by the chairman of that 
committee. The members of the panel shall be briefed by the Secretary of 
the Navy on the status of the submarine modernization program and the 
status of submarine-related research and development under this section.
    (2) <<NOTE: Reports.>> Not later than May 1 of each year, the panel 
shall report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives on the 
panel's findings and recommendations regarding the progress of the 
Secretary in procuring a more capable, less expensive submarine. The 
panel may recommend any funding adjustments it believes appropriate to 
achieve this objective.

    (g) Linkage of Fiscal Year 1998 and 1999 Submarines.--Funds referred 
to in subsection (a)(1)(B) that are available for

[[Page 110 STAT. 210]]

the fiscal year 1998 and fiscal year 1999 submarines under this section 
may not be expended during fiscal year 1996 for the fiscal year 1998 
submarine (other than for design) unless funds are obligated or expended 
during such fiscal year for a contract in support of procurement of the 
fiscal year 1999 submarine.
    (h) Contracts Authorized.--The Secretary of the Navy is authorized, 
using funds available pursuant to paragraph (1)(B) of subsection (a), to 
enter into contracts with Electric Boat Division and Newport News 
Shipbuilding, and suppliers of components, during fiscal year 1996 for--
            (1) the procurement of long-lead components for the fiscal 
        year 1998 submarine and the fiscal year 1999 submarine under 
        this section; and
            (2) advance construction of such components and other 
        components for such submarines.

    (i) Advanced Research Projects Agency Development of Advanced 
Technologies.--(1) Of the amount provided in section 201(4) for the 
Advanced Research Projects Agency, $100,000,000 is available only for 
development and demonstration of advanced technologies for incorporation 
into the submarines constructed as part of the plan developed under 
subsection (c). Such advanced technologies shall include the following:
            (A) Electric drive.
            (B) Hydrodynamic quieting.
            (C) Ship control automation.
            (D) Solid-state power electronics.
            (E) Wake reduction technologies.
            (F) Superconductor technologies.
            (G) Torpedo defense technologies.
            (H) Advanced control concept.
            (I) Fuel cell technologies.
            (J) Propulsors.

    (2) The Director of the Advanced Research Projects Agency shall 
implement a rapid prototype acquisition strategy for both land-based and 
at-sea subsystem and system demonstrations of advanced technologies 
under paragraph (1). Such acquisition strategy shall be developed and 
implemented in concert with Electric Boat Division and Newport News 
Shipbuilding and the Navy.
    (j) References to Contractors.--For purposes of this section--
            (1) the contractor referred to as ``Electric Boat Division'' 
        is the Electric Boat Division of the General Dynamics 
        Corporation; and
            (2) the contractor referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and Drydock 
        Company.

    (k) Potential Competitor Defined.--For purposes of this section, the 
term ``potential competitor'' means any source to which the Secretary of 
the Navy has awarded, within 10 years before the date of the enactment 
of this Act, a contract or contracts to construct one or more nuclear 
attack submarines.

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

    Of the amount appropriated for fiscal year 1996 for the National 
Defense Sealift Fund, $50,000,000 shall be available only for the 
Director of the Advanced Research Projects Agency for advanced submarine 
technology activities.

[[Page 110 STAT. 211]]

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

    (a) Limitation of Costs.--Except as provided in subsection (b), the 
total amount obligated or expended for procurement of the SSN-21, SSN-
22, and SSN-23 Seawolf class submarines may not exceed $7,223,659,000.
    (b) Automatic Increase of Limitation Amount.--The amount of the 
limitation set forth in subsection (a) is increased by the following 
amounts:
            (1) The amounts of outfitting costs and post-delivery costs 
        incurred for the submarines referred to in such subsection.
            (2) The amounts of increases in costs attributable to 
        economic inflation after September 30, 1995.
            (3) The amounts of increases in costs attributable to 
        compliance with changes in Federal, State, or local laws enacted 
        after September 30, 1995.

    (c) Repeal of Superseded Provision.--Section 122 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2682) is repealed.
SEC. 134. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT SUBMARINES.

    Section 124 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2683) is repealed.

SEC. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Authorization for Procurement of Six Vessels.--The Secretary of 
the Navy is authorized to construct six Arleigh Burke class destroyers 
in accordance with this section. Within the amount authorized to be 
appropriated pursuant to section 102(a)(3), $2,169,257,000 is authorized 
to be appropriated for construction (including advance procurement) for 
the Arleigh Burke class destroyers.
    (b) Contracts.--(1) The Secretary is authorized to enter into 
contracts in fiscal year 1996 for the construction of three Arleigh 
Burke class destroyers.
    (2) The Secretary is authorized, in fiscal year 1997, to enter into 
contracts for the construction of the other three Arleigh Burke class 
destroyers covered by subsection (a), subject to the availability of 
appropriations for such destroyers.
    (3) In awarding contracts for the six vessels covered by subsection 
(a), the Secretary shall continue the contract award pattern and 
sequence used by the Secretary for the procurement of Arleigh Burke 
class destroyers during fiscal years 1994 and 1995.
    (4) A contract for construction of a vessel or vessels that is 
entered into in accordance with paragraph (1) shall include a clause 
that limits the liability of the Government to the contractor for any 
termination of the contract. The maximum liability of the Government 
under the clause shall be the amount appropriated for the vessel or 
vessels.
    (c) Use of Available Funds.--(1) Subject to paragraph (2), the 
Secretary may take appropriate actions to use for full funding of a 
contract entered into in accordance with subsection (b)--
            (A) any funds that, having been appropriated for 
        shipbuilding and conversion programs of the Navy other than 
        Arleigh Burke class destroyer programs pursuant to the 
        authorization in section 102(a)(3), become excess to the needs 
        of the Navy

[[Page 110 STAT. 212]]

        for such programs by reason of cost savings achieved for such 
        programs;
            (B) any unobligated funds that are available to the 
        Secretary for shipbuilding and conversion for any fiscal year 
        before fiscal year 1996; and
            (C) any funds that are appropriated after the date of the 
        enactment of the Department of Defense Appropriations Act, 1996, 
        to complete the full funding of the contract.

    (2) The Secretary may not, in the exercise of authority provided in 
subparagraph (A) or (B) of paragraph (1), obligate funds for a contract 
entered into in accordance with subsection (b) until 30 days after the 
date on which the Secretary submits to the congressional defense 
committees in writing a notification of the intent to obligate the 
funds. The notification shall set forth the source or sources of the 
funds and the amount of the funds from each such source that is to be so 
obligated.

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

    (a) Program Authorized.--The Secretary of the Navy shall establish a 
program to procure for, and install in, H-53E military transport 
helicopters commercially developed, energy absorbing, crash attenuating 
seats that the Secretary determines are consistent with military 
specifications for seats for such helicopters.
    (b) Funding.--To the extent provided in appropriations Acts, of the 
unobligated balance of amounts appropriated for the Legacy Resource 
Management Program pursuant to the authorization of appropriations in 
section 301(5) of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337; 108 Stat. 2706), not more than $10,000,000 
shall be available to the Secretary of the Navy, by transfer to the 
appropriate accounts, for carrying out the program authorized in 
subsection (a).

SEC. 137. T-39N TRAINER AIRCRAFT.

    (a) Limitation.--The Secretary of the Navy may not enter into a 
contract, using funds appropriated for fiscal year 1996 for procurement 
of aircraft for the Navy, for the acquisition of the aircraft described 
in subsection (b) until 60 days after the date on which the Under 
Secretary of Defense for Acquisition and Technology submits to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives--
            (1) an analysis of the proposed acquisition of such 
        aircraft; and
            (2) a certification that the proposed acquisition during 
        fiscal year 1996 (A) is in the best interest of the Government, 
        and (B) is the most cost effective means of meeting the 
        requirements of the Navy for aircraft for use in the training of 
        naval flight officers.

    (b) Covered Aircraft.--Subsection (a) applies to certain T-39 
trainer aircraft that as of November 1, 1995 (1) are used by the Navy 
under a lease arrangement for the training of naval flight officers, and 
(2) are offered for sale to the Government.

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

    Not more than one-sixth of the amount appropriated pursuant to this 
Act for the activities and operations of the Unmanned Aerial Vehicle 
Joint Program Office (UAV-JPO), and none of the unobligated balances of 
funds appropriated for fiscal years before

[[Page 110 STAT. 213]]

fiscal year 1996 for the activities and operations of such office, may 
be obligated until the Secretary of the Navy certifies to the Committee 
on Armed Services of the
Senate and the Committee on National Security of the House of 
Representatives that funds have been obligated to equip nine Pioneer 
Unmanned Aerial Vehicle systems with the Common Automatic Landing and 
Recovery System (CARS).

                     Subtitle D--Air Force Programs

SEC. 141. B-2 AIRCRAFT PROGRAM.

    (a) Repeal of Limitations.--The following provisions of law are 
repealed:
            (1) Section 151(c) of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2339).
            (2) Sections 131(c) and 131(d) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
        Stat. 1569).
            (3) Section 133(e) of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2688).

    (b) Conversion of Limitation to Annual Report Requirement.--Section 
112 of the National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189; 103 Stat. 1373) is amended--
            (1) by striking out subsection (a);
            (2) by striking out the matter in subsection (b) preceding 
        paragraph (1) and inserting in lieu thereof the following:

    ``(a) Annual Reporting Requirement.--Not later than March 1 of each 
year, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report that sets forth the finding of the 
Secretary (as of January 1 of such year) on each of the following 
matters:'';
            (3) by striking out ``That'' in paragraphs (1), (2), (3), 
        (4), and (5) and inserting in lieu thereof ``Whether'';
            (4) in paragraph (1), by striking out ``latest'' and all 
        that follows through ``100-180'' and inserting in lieu thereof 
        ``Requirements Correlation Matrix found in the user-defined 
        Operational Requirements Document (as contained in Attachment B 
        to a letter from the Secretary of Defense to Congress dated 
        October 14, 1993)'';
            (5) in paragraph (3), by striking out ``congressional 
        defense'';
            (6) in paragraph (4), by striking out ``such certification 
        to be submitted'';
            (7) by adding at the end the following:

    ``(b) First Report.--The Secretary shall submit the first annual 
report under subsection (a) not later than March 1, 1996.''; and
            (8) by amending the section heading to read as follows:

``SEC. 112. ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.''.

    (c) Repeal of Condition on Obligation of Funds in Enhanced Bomber 
Capability Fund.--Section 133(d)(3) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2688) is amended by striking out ``If,'' and all that follows through 
``bombers, the Secretary'' and inserting in lieu thereof ``The 
Secretary''.

[[Page 110 STAT. 214]]

SEC. 142. PROCUREMENT OF B-2 BOMBERS.

    Of the amount authorized to be appropriated by section 103 for the 
B-2 bomber procurement program, not more than $279,921,000 may be 
obligated or expended before March 31, 1996.

SEC. 143. MC-130H AIRCRAFT PROGRAM.

    The limitation on the obligation of funds for payment of an award 
fee and the procurement of contractor-furnished equipment for the MC-
130H Combat Talon aircraft set forth in section 161(a) of the National 
Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1388) shall cease to apply upon determination by the 
Director of Operational Test and Evaluation (and submission of a 
certification of that determination to the congressional defense 
committees) that, based on the operational test and evaluation and the 
analysis conducted on that aircraft to the date of that determination, 
such aircraft is operationally effective and meets the needs of its 
intended users.

              Subtitle E--Chemical Demilitarization Program

SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH 
                        DEVELOPMENT OF CHEMICAL DEMILITARIZATION 
                        CRYOFRACTURE FACILITY AT TOOELE ARMY 
                        DEPOT, UTAH.

    Subsection (a) of section 173 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1393) 
is repealed.
SEC. 152. <<NOTE: 50 USC 1521 note.>>  DESTRUCTION OF EXISTING 
                        STOCKPILE OF LETHAL CHEMICAL AGENTS AND 
                        MUNITIONS.

    (a) In General.--The Secretary of Defense shall proceed with the 
program for destruction of the chemical munitions stockpile of the 
Department of Defense while maintaining the maximum protection of the 
environment, the general public, and the personnel involved in the 
actual destruction of the munitions. In carrying out such program, the 
Secretary shall use technologies and procedures that will minimize the 
risk to the public at each site.
    (b) Initiation of Demilitarization Operations.--The Secretary of 
Defense may not initiate destruction of the chemical munitions stockpile 
stored at a site until the following support measures are in place:
            (1) Support measures that are required by Department of 
        Defense and Army chemical surety and security program 
        regulations.
            (2) Support measures that are required by the general and 
        site chemical munitions demilitarization plans specific to that 
        installation.
            (3) Support measures that are required by the permits 
        required by the Solid Waste Disposal Act (42 U.S.C. 6901 et 
        seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for 
        chemical munitions demilitarization operations at that
installation, as approved by the appropriate State regulatory agencies.

    (c) Assessment of Alternatives.--(1) The Secretary of Defense shall 
conduct an assessment of the current chemical demilitarization program 
and of measures that could be taken to reduce

[[Page 110 STAT. 215]]

significantly the total cost of the program, while ensuring maximum 
protection of the general public, the personnel involved in the 
demilitarization program, and the environment. The measures considered 
shall be limited to those that would minimize the risk to the public. 
The assessment shall be conducted without regard to any limitation that 
would otherwise apply to the conduct of such an assessment under any 
provision of law.
    (2) The assessment shall be conducted in coordination with the 
National Research Council.
    (3) Based on the results of the assessment, the Secretary shall 
develop appropriate recommendations for revision of the chemical 
demilitarization program.
    (4) <<NOTE: Reports.>> Not later than March 1, 1996, the Secretary 
of Defense shall submit to the congressional defense committees an 
interim report assessing the current status of the chemical stockpile 
demilitarization program, including the results of the Army's analysis 
of the physical and chemical integrity of the stockpile and implications 
for the chemical demilitarization program, and providing recommendations 
for revisions to that program that have been included in the budget 
request of the Department of Defense for fiscal year 1997. The Secretary 
shall submit to the congressional defense committees with the submission 
of the budget request of the Department of Defense for fiscal year 1998 
a final report on the assessment conducted in accordance with paragraph 
(1) and recommendations for revision to the program, including an 
assessment of alternative demilitarization technologies and processes to 
the baseline incineration process and potential reconfiguration of the 
stockpile that should be incorporated in the program.

    (d) Assistance for Chemical Weapons Stockpile Communities Affected 
by Base Closure.--(1) The Secretary of Defense shall review and evaluate 
issues associated with closure and reutilization of Department of 
Defense facilities co-located with continuing chemical stockpile and 
chemical demilitarization operations.
    (2) The review shall include the following:
            (A) An analysis of the economic impacts on these communities 
        and the unique reuse problems facing local communities 
        associated with ongoing chemical weapons programs.
            (B) Recommendations of the Secretary on methods for 
        expeditious and cost-effective transfer or lease of these 
        facilities to local communities for reuse by those communities.

    (3) <<NOTE: Reports.>> The Secretary shall submit to the 
congressional defense committees a report on the review and evaluation 
under this subsection. The report shall be submitted not later than 90 
days after the date of the enactment of this Act.
SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

    (a) Travel Funding for Members of Chemical Demilitarization 
Citizens' Advisory Commissions.--Section 172(g) of Public Law 102-484 
(50 U.S.C. 1521 note) is amended to read as follows:
    ``(g) Pay and Expenses.--Members of each commission shall receive no 
pay for their involvement in the activities of their commissions. Funds 
appropriated for the Chemical Stockpile Demilitarization Program may be 
used for travel and associated travel costs for Citizens' Advisory 
Commissioners, when such travel

[[Page 110 STAT. 216]]

is conducted at the invitation of the Assistant Secretary of the Army 
(Research, Development, and Acquisition).''.
    (b) Quarterly Report Concerning Travel Funding for Citizens' 
Advisory Commissioners.--Section 1412(g) of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521(g)), is amended--
            (1) by striking out ``(g) Annual Report.--'' and inserting 
        in lieu thereof ``(g) Periodic Reports.--'';
            (2) in paragraph (2)--
                    (A) by striking out ``Each such report shall con-
                tain--'' and inserting in lieu thereof ``Each annual 
                report shall contain--''
                    (B) in subparagraph (B)--
                          (i) by striking out ``and'' at the end of 
                      clause (iv);
                          (ii) by striking out the period at the end of 
                      clause (v) and inserting in lieu thereof ``; 
                      and''; and
                          (iii) by adding at the end the following:
                    ``(vi) travel and associated travel costs for 
                Citizens' Advisory Commissioners under section 172(g) of 
                Public Law 102-484 (50 U.S.C. 1521 note).'';
            (3) by redesignating paragraph (3) as paragraph (4);
            (4) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) The Secretary shall transmit 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 quarterly report containing an accounting 
of all funds expended (during the quarter covered by the report) for 
travel and associated travel costs for Citizens' Advisory Commissioners 
under section 172(g) of Public Law 102-484 (50 U.S.C. 1521 note). The 
quarterly report for the final quarter of the period covered by a report 
under paragraph (1) may be included in that report.''; and
            (5) in paragraph (4), as redesignated by paragraph (3)--
                    (A) by striking out ``this subsection'' and 
                inserting in lieu thereof ``paragraph (1)''; and
                    (B) by adding at the end the following: ``No 
                quarterly report is required under paragraph (3) after 
                the transmittal of the final report under paragraph 
                (1).''.

    (c) Director of Program.--Section 1412(e)(3) of the Department of 
Defense Authorization Act, 1986 (50 U.S.C. 1521(e)(3)), is amended by 
inserting ``or civilian equivalent'' after ``general officer''.

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

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,737,581,000.

[[Page 110 STAT. 217]]

            (2) For the Navy, $8,474,783,000.
            (3) For the Air Force, $12,914,868,000.
            (4) For Defense-wide activities, $9,693,180,000, of which--
                    (A) $251,082,000 is authorized for the activities of 
                the Director, Test and Evaluation; and
                    (B) $22,587,000 is authorized for the Director of 
                Operational Test and Evaluation.
SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY DEVELOPMENT.

    (a) Fiscal Year 1996.--Of the amounts authorized to be appropriated 
by section 201, $4,088,879,000 shall be available for basic research and 
exploratory development projects.
    (b) Basic Research and Exploratory Development Defined.--For 
purposes of this section, the term ``basic research and exploratory 
development'' means work funded in program elements for defense research 
and development under Department of Defense category 6.1 or 6.2.
SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH AND 
                        DEVELOPMENT PROGRAM.

    (a) Council Membership.--Section 2902(b) of title 10, United States 
Code, is amended--
            (1) by striking out ``thirteen'' and inserting in lieu 
        thereof ``12'';
            (2) by striking out paragraph (3);
            (3) by redesignating paragraphs (4), (5), (6), (7), (8), 
        (9), and (10) as paragraphs (3), (4), (5), (6), (7), (8), and 
        (9), respectively; and
            (4) in paragraph (8), as redesignated, by striking out ``, 
        who shall be nonvoting members''.

    (b) Annual Report.--(1) Section 2902 of such title is amended in 
subsection (d)--
            (A) by striking out paragraph (3) and inserting in lieu 
        thereof the following:
            ``(3) To prepare an annual report that contains the 
        following:
                    ``(A) A description of activities of the strategic 
                environmental research and development program carried 
                out during the fiscal year before the fiscal year in 
                which the report is prepared.
                    ``(B) A general outline of the activities planned 
                for the program during the fiscal year in which the 
                report is prepared.
                    ``(C) A summary of projects continued from the 
                fiscal year before the fiscal year in which the report 
                is prepared and projects expected to be started during 
                the fiscal year in which the report is prepared and 
                during the following fiscal year.''; and
            (B) in paragraph (4), by striking out ``Federal Coordinating 
        Council on Science, Engineering, and Technology'' and inserting 
        in lieu thereof ``National Science and Technology Council''.

    (2) Section 2902 of such title is further amended--
            (A) by striking out subsections (f) and (h);
            (B) by redesignating subsection (g) as subsection (f); and
            (C) by adding at the end the following new subsection:

[[Page 110 STAT. 218]]

    ``(g)(1) Not later than February 1 of each year, the Council shall 
submit to the Secretary of Defense the annual report prepared pursuant 
to subsection (d)(3).
    ``(2) Not later than March 15 of each year, the Secretary of Defense 
shall submit such annual report to Congress, along with such comments as 
the Secretary considers appropriate.''.
    (3) <<NOTE: 10 USC 2902 note.>> The amendments made by this 
subsection shall apply with respect to the annual report prepared during 
fiscal year 1997 and each fiscal year thereafter.

    (c) Policies and Procedures.--Section 2902(e) of such title is 
amended in paragraph (3) by striking out ``programs, particularly'' and 
all that follows through the end of the paragraph and inserting in lieu 
thereof ``programs;''.
    (d) Competitive Procedures.--Section 2903(c) of such title is 
amended--
            (1) by striking out ``or'' after ``contracts'' and inserting 
        in lieu thereof ``using competitive procedures. The Executive 
        Director may enter into''; and
            (2) by striking out ``law, except that'' and inserting in 
        lieu thereof ``law. In either case,''.

    (e) Continuation of Expiring Authority.--(1) Section 2903(d) of such 
title is amended in paragraph (2) by striking out the last sentence.
    (2) <<NOTE: Effective date. 10 USC 2903 note.>> The amendment made 
by paragraph (1) shall take effect as of September 29, 1995.

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

    (a) Fiscal Year 1996 Amount.--Of the amount authorized to be 
appropriated in section 201(4), $195,000,000 shall be available for the 
defense dual use technology initiative conducted under chapter 148 of 
title 10, United States Code.
    (b) Availability of Funds for Existing Technology Reinvestment 
Projects.--The Secretary of Defense shall use amounts made available for 
the defense dual use technology initiative under subsection (a) only for 
the purpose of continuing or completing technology reinvestment projects 
that were initiated before October 1, 1995.
    (c) Notice Concerning Projects To Be Carried Out.--Of the amounts 
made available for the defense dual use technology initiative under 
subsection (a)--
            (1) $145,000,000 shall be available for obligation only 
        after the date on which the Secretary of Defense notifies the 
        congressional defense committees regarding the defense 
        reinvestment projects to be funded using such funds; and
            (2) the remaining $50,000,000 shall be available for 
        obligation only after the date on which the Secretary of Defense 
        certifies to the congressional defense committees that the 
        defense reinvestment projects to be funded using such funds have 
        been determined by the Joint Requirements Oversight Council to 
        be of significant military priority.

[[Page 110 STAT. 219]]

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Allocation of Funds.--Of the amount authorized to be 
appropriated pursuant to the authorization in section 201(3), 
$50,000,000 shall be available for a competitive reusable rocket 
technology program.
    (b) Limitation.--Funds made available pursuant to subsection (a)(1) 
may be obligated only to the extent that the fiscal year 1996 current 
operating plan of the National Aeronautics and Space Administration 
allocates at least an equal amount for its Reusable Space Launch 
program.

SEC. 212. TACTICAL MANNED RECONNAISSANCE.

    (a) Limitation.--None of the amounts appropriated or otherwise made 
available pursuant to an authorization in this Act may be used by the 
Secretary of the Air Force to conduct research, development, test, or 
evaluation for a replacement aircraft, pod, or sensor payload for the 
tactical manned reconnaissance mission until the report required by 
subsection (b) is submitted to the congressional defense committees.
    (b) Report.--The Secretary of the Air Force shall submit to the 
congressional defense committees a report setting forth in detail 
information about the manner in which the funds authorized by section 
201 of this Act and section 201 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2690) are 
planned to be used during fiscal year 1996 for research, development, 
test, and evaluation for the Air Force tactical manned reconnaissance 
mission. At a minimum, the report shall include the sources, by program 
element, of the funds and the purposes for which the funds are planned 
to be used.

SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, $200,156,000 
shall be available for the Joint Advanced Strike Technology (JAST) 
program. Of that amount--
            (1) $83,795,000 shall be available for program element 
        63800N in the budget of the Department of Defense for fiscal 
        year 1996;
            (2) $85,686,000 shall be available for program element 
        63800F in such budget; and
            (3) $30,675,000 shall be available for program element 
        63800E in such budget.

    (b) Additional Allocation.--Of the amounts made available under 
paragraphs (1), (2), and (3) of subsection (a)--
            (1) $25,000,000 shall be available from the amount 
        authorized to be appropriated pursuant to the authorization in 
        section 201(2) for the conduct, during fiscal year 1996, of a 6-
        month program definition phase for the A/F117X, an F-117 fighter 
        aircraft modified for use by the Navy as a long-range, medium 
        attack aircraft; and
            (2) $7,000,000 shall be available to provide for competitive 
        engine concepts.

[[Page 110 STAT. 220]]

    (c) Limitation.--Not more than 75 percent of the amount appropriated 
for the Joint Advanced Strike Technology program pursuant to the 
authorizations in section 201 may be obligated until a period of 30 days 
has expired after the report required by subsection (d) is submitted to 
the congressional defense committees.
    (d) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report, in unclassified and 
classified forms, not later than March 1, 1996, that sets forth in 
detail the following information for the period 1997 through 2005:
            (1) The total joint requirement, assuming the capability to 
        successfully conduct two nearly simultaneous major regional 
        contingencies, for the following:
                    (A) Numbers of bombers, tactical combat aircraft, 
                and attack helicopters and the characteristics required 
                of those aircraft in terms of capabilities, range, and 
                low-observability.
                    (B) Surface- and air-launched standoff precision 
                guided munitions.
                    (C) Cruise missiles.
                    (D) Ground-based systems, such as the Extended 
                Range-Multiple Launch Rocket System and the Army 
                Tactical Missile System (ATACMS), for joint warfighting 
                capability.
            (2) The warning time assumptions for two nearly simultaneous 
        major regional contingencies, and the effects on future tactical 
        attack/fighter aircraft requirements using other warning time 
        assumptions.
            (3) The requirements that exist for the Joint Advanced 
        Strike Technology program that cannot be met by existing 
        aircraft or by those in development.

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

    Of the amount authorized to be appropriated by section 201(2), 
$9,000,000 shall be used for the development by the Naval High Energy 
Laser Office of a continuous wave, superconducting radio frequency free 
electron laser program.

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

    Section 216(a) of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317) is amended--
            (1) by striking out ``Director, Defense Research and 
        Engineering'' and inserting in lieu thereof ``Under Secretary of 
        Defense for Acquisition and Technology''; and
            (2) by striking out ``fiscal years 1995 through 1999'' and 
        inserting in lieu thereof ``fiscal years 1996 through 1999''.

SEC. 216. SPACE-BASED INFRARED SYSTEM.

    (a) Program Baseline.--The Secretary of Defense shall establish a 
program baseline for the Space-Based Infrared System. Such baseline 
shall--
            (1) include--
                    (A) program cost and an estimate of the funds 
                required for development and acquisition activities for 
                each fiscal year in which such activities are planned to 
                be carried out;

[[Page 110 STAT. 221]]

                    (B) a comprehensive schedule with program milestones 
                and exit criteria; and
                    (C) optimized performance parameters for each 
                segment of an integrated space-based infrared system;
            (2) be structured to achieve initial operational capability 
        of the low earth orbit space segment (the Space and Missile 
        Tracking System) in fiscal year 2003, with a first launch of 
        Block I satellites in fiscal year 2002;
            (3) ensure integration of the Space and Missile Tracking 
        System into the architecture of the Space-Based Infrared System; 
        and
            (4) ensure that the performance parameters of all space 
        segment components are selected so as to optimize the 
        performance of the Space-Based Infrared System while minimizing 
        unnecessary redundancy and cost.

    (b) Report on Program Baseline.--Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report, in classified and 
unclassified forms as necessary, on the program baseline established 
under subsection (a).
    (c) Establishment of Program Elements.--In the budget justification 
materials submitted to Congress in support of the Department of Defense 
budget for any fiscal year after fiscal year 1996 (as submitted in the 
budget of the President under section 1105(a) of title 31, United States 
Code), the amount requested for the Space-Based Infrared System shall be 
set forth in accordance with the following program elements:
            (1) Space Segment High.
            (2) Space Segment Low (Space and Missile Tracking System).
            (3) Ground Segment.

    (d) Funding for Fiscal Year 1996.--Of the amounts authorized to be 
appropriated pursuant to section 201(3) for fiscal year 1996, or 
otherwise made available to the Department of Defense for fiscal year 
1996, the following amounts shall be available for the Space-Based 
Infrared System:
            (1) $265,744,000 for demonstration and validation, of which 
        $249,824,000 shall be available for the Space and Missile 
        Tracking System.
            (2) $162,219,000 for engineering and manufacturing 
        development, of which $9,400,000 shall be available for the 
        Miniature Sensor Technology Integration program.

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

    (a) Agency Funding.--Of the amounts authorized to be appropriated to 
the Department of Defense in section 201, $241,703,000 shall be 
available for the Defense Nuclear Agency.
    (b) Tunnel Characterization and Neutralization Program.--Of the 
amount made available under subsection (a), $3,000,000 shall be 
available for a tunnel characterization and neutralization program to be 
managed by the Defense Nuclear Agency as part of the 
counterproliferation activities of the Department of Defense.
    (c) Long-Term Radiation Tolerant Microelectronics Program.--(1) Of 
the amount made available under subsection (a), $6,000,000 shall be 
available for the establishment of a long-term

[[Page 110 STAT. 222]]

radiation tolerant microelectronics program to be managed by the Defense 
Nuclear Agency for the purposes of--
            (A) providing for the development of affordable and 
        effective hardening technologies and for incorporation of such 
        technologies into systems;
            (B) sustaining the supporting industrial base; and
            (C) ensuring that a use of a nuclear weapon in regional 
        threat scenarios does not interrupt or defeat the continued 
        operability of systems of the Armed Forces exposed to the 
        combined effects of radiation emitted by the weapon.

    (2) <<NOTE: Reports.>> 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 how the long-term radiation tolerant microelectronics 
program is to be conducted and funded in the fiscal years after fiscal 
year 1996 that are covered by the future-years defense program submitted 
to Congress in 1995.

    (d) Thermionics Program.--Of the amount made available under 
subsection (a), $10,000,000 shall be available for the thermionics 
program, to be managed by the Defense Nuclear Agency.
    (e) Electrothermal Gun Technology Program.--Of the amount made 
available under subsection (a), $4,000,000 shall be available for the 
electrothermal gun technology program of the Defense Nuclear Agency.
    (f) Counterterror Explosives Research Program.--Of the amount made 
available under subsection (a), $4,000,000 shall be available for the 
counterterror explosives research program of the Defense Nuclear Agency.
    (g) Transfer of Unobligated Balance.--The Secretary of Defense shall 
transfer to the Defense Nuclear Agency, to be available for the 
thermionics program, an amount not to exceed $12,000,000 from the 
unobligated balance of funds authorized and appropriated for research, 
development, test, and evaluation for fiscal year 1995 for the Air Force 
for the Advanced Weapons Program.

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to the 
Department of Defense under section 201(4), $138,237,000 shall be 
available for the Counterproliferation Support Program, of which 
$30,000,000 shall be available for a tactical antisatellite technologies 
program.
    (b) Additional Authority To Transfer Authorizations.--(1) In 
addition to the transfer authority provided in section 1001, upon 
determination by the Secretary of Defense that such action is necessary 
in the national interest, the Secretary may transfer amounts of 
authorizations made available to the Department of Defense in this 
division for fiscal year 1996 to counterproliferation programs, 
projects, and activities identified as areas for progress by the 
Counterproliferation Program Review Committee established by section 
1605 of the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160; 107 Stat. 1845). Amounts of authorizations so 
transferred shall be merged with and be available for the same purposes 
as the authorization to which transferred.
    (2) The total amount of authorizations transferred under the 
authority of this subsection may not exceed $50,000,000.

[[Page 110 STAT. 223]]

    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (B) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

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

SEC. 219. NONLETHAL WEAPONS STUDY.

    (a) Findings.--Congress finds the following:
            (1) The role of the United States military in operations 
        other than war has increased.
            (2) Weapons and instruments that are nonlethal in 
        application yet immobilizing could have widespread operational 
        utility and application.
            (3) The use of nonlethal weapons in operations other than 
        war poses a number of important doctrine, legal, policy, and 
        operations questions which should be addressed in a 
        comprehensive and coordinated manner.
            (4) The development of nonlethal technologies continues to 
        spread across military and agency budgets.
            (5) The Department of Defense should provide improved 
        budgetary focus and management direction to the nonlethal 
        weapons program.

    (b) Responsibility for Development of Nonlethal Weapons 
Technology.--Not later than February 15, 1996, the Secretary of Defense 
shall assign centralized responsibility for development (and any other 
functional responsibility the Secretary considers appropriate) of 
nonlethal weapons technology to an existing office within the Office of 
the Secretary of Defense or to a military service as the executive 
agent.

    (c) Report.--Not later than February 15, 1996, the Secretary of 
Defense shall submit to Congress a report setting forth the following:
            (1) The name of the office or military service assigned 
        responsibility for the nonlethal weapons program by the 
        Secretary of Defense pursuant to subsection (b) and a discussion 
        of the rationale for such assignment.
            (2) The degree to which nonlethal weapons are required by 
        more than one of the armed forces.
            (3) The time frame for the development and deployment of 
        such weapons.
            (4) The appropriate role of the military departments and 
        defense agencies in the development of such weapons.
            (5) The military doctrine, legal, policy, and operational 
        issues that must be addressed by the Department of Defense 
        before such weapons achieve operational capability.

    (d) Authorization.--Of the amount authorized to be appropriated 
under section 201(4), $37,200,000 shall be available for nonlethal 
weapons programs and nonlethal technologies programs.

[[Page 110 STAT. 224]]

    (e) Definition.--For purposes of this section, the term ``nonlethal 
weapon'' means a weapon or instrument the effect of which on human 
targets is less than fatal.
SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS AND 
                        UNIVERSITY-AFFILIATED RESEARCH CENTERS.

    (a) Centers Covered.--Funds appropriated or otherwise made available 
for the Department of Defense for fiscal year 1996 pursuant to an 
authorization of appropriations in section 201 may be obligated to 
procure work from a federally funded research and development center (in 
this section referred to as an ``FFRDC'') or a university-affiliated 
research center (in this section referred to as a ``UARC'') only in the 
case of a center named in the report required by subsection (b) and, in 
the case of such a center, only in an amount not in excess of the amount 
of the proposed funding level set forth for that center in such report.
    (b) Report on Allocations for Centers.--(1) Not later than 30 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing--
            (A) the name of each FFRDC and UARC from which work is 
        proposed to be procured for the Department of Defense for fiscal 
        year 1996; and
            (B) for each such center, the proposed funding level and the 
        estimated personnel level for fiscal year 1996.

    (2) The total of the proposed funding levels set forth in the report 
for all FFRDCs and UARCs may not exceed the amount set forth in 
subsection (d).
    (c) Limitation Pending Submission of Report.--Not more than 15 
percent of the funds appropriated or otherwise made available for the 
Department of Defense for fiscal year 1996 pursuant to an authorization 
of appropriations in section 201 for FFRDCs and UARCs may be obligated 
to procure work from an FFRDC or UARC until the Secretary of Defense 
submits the report required by subsection (b).
    (d) Funding.--Of the amounts authorized to be appropriated by 
section 201, not more than a total of $1,668,850,000 may be obligated to 
procure services from the FFRDCs and UARCs named in the report required 
by subsection (b).
    (e) Authority To Waive Funding Limitation.--The Secretary of Defense 
may waive the limitation regarding the maximum funding amount that 
applies under subsection (a) to an FFRDC or 
UARC. <<NOTE: Notice.>> Whenever the Secretary proposes to make such a 
waiver, the Secretary shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives notice of the proposed waiver and the reasons for the 
waiver. The waiver may then be made only after the end of the 60-day 
period that begins on the date on which the notice is submitted to those 
committees, unless the Secretary determines that it is essential to the 
national security that funds be obligated for work at that center in 
excess of that limitation before the end of such period and notifies 
those committees of that determination and the reasons for the 
determination.

    (f) Five-Year Plan.--(1) The Secretary of Defense, in consultation 
with the Secretaries of the military departments, shall develop a five-
year plan to reduce and consolidate the activities performed

[[Page 110 STAT. 225]]

by FFRDCs and UARCs and establish a framework for the future workload of 
such centers.
    (2) The plan shall--
            (A) set forth the manner in which the Secretary of Defense 
        could achieve by October 1, 2000, implementation by FFRDCs and 
        UARCs of only those core activities, as defined by the 
        Secretary, that require the unique capabilities and arrangements 
        afforded by such centers; and
            (B) include an assessment of the number of personnel needed 
        in each FFRDC and UARC during each year over the five years 
        covered by the plan.

    (3) <<NOTE: Reports.>> Not later than February 1, 1996, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the plan required by this subsection.

SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

    Of the amount authorized to be appropriated under section 201(3), 
$9,500,000 shall be available for fiscal year 1996 (in program element 
61101F in the budget of the Department of Defense for fiscal year 1996) 
for continuation of the Joint Seismic Program and Global Seismic 
Network.

SEC. 222. HYDRA-70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

    (a) Funding Authorization.--Of the amount authorized to be 
appropriated under section 201(1) for Other Missile Product Improvement 
Programs, $10,000,000 is authorized to be appropriated for a Hydra-70 
rocket product improvement program and to be made available under such 
program for full qualification and operational platform certification of 
a Hydra-70 rocket described in subsection (b) for use on the Apache 
attack helicopter.
    (b) Hydra-70 Rocket Covered.--The Hydra-70 rocket referred to in 
subsection (a) is any Hydra-70 rocket that has as its propulsion 
component a 2.75-inch rocket motor that is a nondevelopmental item and 
uses a composite propellant.
    (c) Competition Required.--The Secretary of the Army shall conduct 
the product improvement program referred to in subsection (a) with full 
and open competition.
    (d) Submission of Technical Data Package Required.--Upon the full 
qualification and operational platform certification of a Hydra-70 
rocket as described in subsection (a), the contractor providing the 
rocket so qualified and certified shall submit the technical data 
package for the rocket to the Secretary of the Army. The Secretary shall 
use the technical data package in competitions for contracts for the 
procurement of Hydra-70 rockets described in subsection (b) for the 
Army.
    (e) Definitions.--For purposes of this section, the terms ``full and 
open competition'' and ``nondevelopmental item'' have the meanings given 
such terms in section 4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403).
SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF 
                        ELECTRONIC COMBAT CONSOLIDATION MASTER 
                        PLAN.

    (a) Limitation.--Not more than 75 percent of the amounts 
appropriated or otherwise made available pursuant to the authorization 
of appropriations in section 201 for test and evaluation program 
elements 65896A, 65864N, 65807F, and 65804D in the budget of the 
Department of Defense for fiscal year 1996 may

[[Page 110 STAT. 226]]

be obligated until 14 days after the date on which the congressional 
defense committees receive the plan specified in subsection (b).
    (b) Plan.--The plan referred to in subsection (a) is the master plan 
for electronic combat consolidation described under Defense-Wide 
Programs under Research, Development, Test, and Evaluation in the Report 
of the Committee on Armed Services of the House of Representatives on 
H.R. 4301 (House Report 103-499), dated May 10, 1994.
SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT, TEST, AND 
                        EVALUATION.

    (a) Report Requirement.--Not later than March 15, 1996, the Under 
Secretary of Defense (Comptroller) shall submit to the congressional 
defense committees a report that sets forth in detail the allocation of 
reductions for research, development, test, and evaluation described in 
subsection (b).
    (b) Description of Reductions.--The reductions for research, 
development, test, and evaluation covered by subsection (a) are the 
following Army, Navy, Air Force, and Defense-wide reductions, as 
required by the Department of Defense Appropriations Act, 1996:
            (1) General reductions.
            (2) Reductions to reflect savings from revised economic 
        assumptions.
            (3) Reductions to reflect the funding ceiling for defense 
        federally funded research and development centers.
            (4) Reductions for savings through improved management of 
        contractor automatic data processing costs charged through 
        indirect rates on Department of Defense acquisition contracts.

SEC. 225. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

    (a) Authority To Use Funds for Alternative Propellant 
Technologies.--During fiscal year 1996, the Secretary of the Army may 
use funds appropriated for the liquid propellant portion of the Advanced 
Field Artillery System (Crusader) program for fiscal year 1996 for 
alternative propellant technologies and integration of those 
technologies into the design of the Crusader if--
            (1) the Secretary determines that the technical risk 
        associated with liquid propellant will increase costs and delay 
        the initial operational capability of the Crusader; and
            (2) <<NOTE: Notification.>> the Secretary notifies the 
        congressional defense committees of the proposed use of the 
        funds and the reasons for the proposed use of the funds.

    (b) Limitation.--The Secretary of the Army may not spend funds for 
the liquid propellant portion of the Crusader program after August 15, 
1996, unless--
            (1) the report required by subsection (c) has been submitted 
        by that date; and
            (2) such report includes documentation of significant 
        progress, as determined by the Secretary, toward meeting the 
        objectives for the liquid propellant portion of the program, as 
        set forth in the baseline description for the Crusader program 
        and approved by the Office of the Secretary of Defense on 
        January 4, 1995.

    (c) Report Required.--Not later than August 1, 1996, the Secretary 
of the Army shall submit to the congressional defense committees a 
report containing documentation of the progress being made in meeting 
the objectives set forth in the baseline description for the Crusader 
program and approved by the Office of the Sec

[[Page 110 STAT. 227]]

retary of Defense on January 4, 1995. The report shall specifically 
address the progress being made toward meeting the following objectives:
            (1) Establishment of breech and ignition design criteria for 
        rate of fire for the cannon of the Crusader.
            (2) Selection of a satisfactory ignition concept for the 
        next prototype of the cannon.
            (3) Selection, on the basis of modeling and simulation, of 
        design concepts to prevent chamber piston reversals, and 
        validation of the selected concepts by gun and mock chamber 
        firings.
            (4) Achievement of an understanding of the chemistry and 
        physics of propellant burn resulting from the firing of liquid 
        propellant into any target zone, and achievement, on the basis 
        of modeling and simulation, of an ignition process that is 
        predictable.
            (5) Completion of an analysis of the management of heat 
        dissipation for the full range of performance requirements for 
        the cannon, completion of concept designs supported by that 
        analysis, and proposal of such concept designs for engineering.
            (6) Development, for integration into the next prototype of 
        the cannon, of engineering designs to control pressure 
        oscillations in the chamber of the cannon during firing.
            (7) Completion of an assessment of the sensitivity of liquid 
        propellant to contamination by various materials to which it may 
        be exposed throughout the handling and operation of the cannon, 
        and documentation of predictable reactions of contaminated or 
        sensitized liquid propellant.

    (d) Additional Matters To Be Covered by Report.--The report required 
by subsection (c) also shall contain the following:
            (1) An assertion that all the known hazards associated with 
        liquid propellant have been identified and are controllable to 
        acceptable levels.
            (2) An assessment of the technology for each component of 
        the Crusader (the cannon, vehicle, and crew module), including, 
        for each performance goal of the Crusader program (including the 
        goal for total system weight), information about the maturity of 
        the technology to achieve that goal, the maturity of the design 
        of the technology, and the manner in which the design has been 
        proven (for example, through simulation, bench testing, or 
        weapon firing).
            (3) An assessment of the cost of continued development of 
        the Crusader after August 1, 1996, and the cost of each unit of 
        the Crusader in the year the Crusader will be completed.
SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
                        EXPLOSIVES.

    Of the amount appropriated pursuant to the authorization in section 
201 for explosives demilitarization technology, $15,000,000 shall be 
available to establish an integrated program for the development and 
demonstration of conventional munitions and explosives demilitarization 
technologies that comply with applicable environmental laws for the 
demilitarization and disposal of unserviceable, obsolete, or nontreaty 
compliant munitions, rocket motors, and explosives.

[[Page 110 STAT. 228]]

SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

    (a) Limitation.--Not more than three percent of the total amount 
appropriated for research and development under the Defense Airborne 
Reconnaissance program pursuant to the authorizations of appropriations 
in section 201 may be obligated for systems engineering and technical 
assistance (SETA) contracts until--
            (1) funds are obligated (out of such appropriated funds) 
        for--
                    (A) the upgrade of U-2 aircraft senior year electro-
                optical reconnaissance sensors to the newest 
                configuration; and
                    (B) the upgrade of the U-2 SIGINT system; and
            (2) the Under Secretary of Defense for Acquisition and 
        Technology submits the report required under subsection (b).

    (b) Report on U-2-Related Upgrades.--(1) Not later than April 1, 
1996, the Under Secretary of Defense for Acquisition and Technology 
shall transmit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on obligations of funds for upgrades relating to airborne reconnaissance 
by U-2 aircraft.
    (2) The report shall set forth the specific purposes under the 
general purposes described in subparagraphs (A) and (B) of subsection 
(a)(1) for which funds have been obligated (as of the date of the 
report) and the amounts that have been obligated (as of such date) for 
those specific purposes.

  Subtitle C--Ballistic Missile Defense Act <<NOTE: Ballistic Missile 
Defense Act of 1995. 10 USC 2431 note.>> of 1995

SEC. 231. SHORT TITLE.

    This subtitle may be cited as the ``Ballistic Missile Defense Act of 
1995''.

SEC. 232. FINDINGS.

    Congress makes the following findings:
            (1) The emerging threat that is posed to the national 
        security interests of the United States by the proliferation of 
        ballistic missiles is significant and growing, both in terms of 
        numbers of missiles and in terms of the technical capabilities 
        of those missiles.
            (2) The deployment of ballistic missile defenses is a 
        necessary, but not sufficient, element of a broader strategy to 
        discourage both the proliferation of weapons of mass destruction 
        and the proliferation of the means of their delivery and to 
        defend against the consequences of such proliferation.
            (3) The deployment of effective Theater Missile Defense 
        systems can deter potential adversaries of the United States 
        from escalating a conflict by threatening or attacking United 
        States forces or the forces or territory of coalition partners 
        or allies of the United States with ballistic missiles armed 
        with weapons of mass destruction to offset the operational and 
        technical advantages of the United States and its coalition 
        partners and allies.
            (4) United States intelligence officials have provided 
        intelligence estimates to congressional committees that (A) the 
        trend

[[Page 110 STAT. 229]]

        in missile proliferation is toward longer range and more 
        sophisticated ballistic missiles, (B) North Korea may deploy an 
        intercontinental ballistic missile capable of reaching Alaska or 
        beyond within five years, and (C) although a new, indigenously 
        developed ballistic missile threat to the continental United 
        States is not foreseen within the next ten years, determined 
        countries can acquire intercontinental ballistic missiles in the 
        near future and with little warning by means other than 
        indigenous development.
            (5) The development and deployment by the United States and 
        its allies of effective defenses against ballistic missiles of 
        all ranges will reduce the incentives for countries to acquire 
        such missiles or to augment existing missile capabilities.
            (6) The concept of mutual assured destruction (based upon an 
        offense-only form of deterrence), which is the major 
        philosophical rationale underlying the ABM Treaty, is now 
        questionable as a basis for stability in a multipolar world in 
        which the United States and the states of the former Soviet 
        Union are seeking to normalize relations and eliminate Cold War 
        attitudes and arrangements.
            (7) The development and deployment of a National Missile 
        Defense system against the threat of limited ballistic missile 
        attacks--
                    (A) would strengthen deterrence at the levels of 
                forces agreed to by the United States and Russia under 
                the Strategic Arms Reduction Talks Treaty (START-I); and
                    (B) would further strengthen deterrence if 
                reductions below the levels permitted under START-I 
                should be agreed to and implemented in the future.
            (8) The distinction made during the Cold War, based upon the 
        technology of the time, between strategic ballistic missiles and 
        nonstrategic ballistic missiles, which resulted in the 
        distinction made in the ABM Treaty between strategic defense and 
        nonstrategic defense, has become obsolete because of 
        technological advancement (including the development by North 
        Korea of long-range Taepo-Dong I and Taepo-Dong II missiles) 
        and, therefore, that distinction in the ABM Treaty should be 
        reviewed.

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

    It is the policy of the United States--
            (1) to deploy affordable and operationally effective theater 
        missile defenses to protect forward-deployed and expeditionary 
        elements of the Armed Forces of the United States and to 
        complement the missile defense capabilities of forces of 
        coalition partners and of allies of the United States; and
            (2) to seek a cooperative, negotiated transition to a regime 
        that does not feature an offense-only form of deterrence as the 
        basis for strategic stability.

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

    (a) Establishment of Core Program.--To implement the policy 
established in paragraph (1) of section 233, the Secretary of Defense 
shall restructure the core theater missile defense program to consist of 
the following systems, to be carried out so as to achieve the specified 
capabilities:
            (1) The Patriot PAC-3 system, with a first unit equipped 
        (FUE) during fiscal year 1998.

[[Page 110 STAT. 230]]

            (2) The Navy Lower Tier (Area) system, with a user 
        operational evaluation system (UOES) capability during fiscal 
        year 1997 and an initial operational capability (IOC) during 
        fiscal year 1999.
            (3) The Theater High-Altitude Area Defense (THAAD) system, 
        with a user operational evaluation system (UOES) capability not 
        later than fiscal year 1998 and a first unit equipped (FUE) not 
        later than fiscal year 2000.
            (4) The Navy Upper Tier (Theater Wide) system, with a user 
        operational evaluation system (UOES) capability during fiscal 
        year 1999 and an initial operational capability (IOC) during 
        fiscal year 2001.

    (b) Use of Streamlined Acquisition Procedures.--The Secretary of 
Defense shall prescribe and use streamlined acquisition policies and 
procedures to reduce the cost and increase the efficiency of developing 
and deploying the theater missile defense systems specified in 
subsection (a).
    (c) Interoperability and Support of Core Systems.--To maximize 
effectiveness and flexibility of the systems comprising the core theater 
missile defense program, the Secretary of Defense shall ensure that 
those systems are integrated and complementary and are fully capable of 
exploiting external sensor and battle management support from systems 
such as--
            (A) the Cooperative Engagement Capability (CEC) system of 
        the Navy;
            (B) airborne sensors; and
            (C) space-based sensors (including, in particular, the Space 
        and Missile Tracking System).

    (d) Follow-on Systems.--(1) The Secretary of Defense shall prepare 
an affordable development plan for theater missile defense systems to be 
developed as follow-on systems to the core systems specified in 
subsection (a). The Secretary shall make the selection of a system for 
inclusion in the plan based on the capability of the system to satisfy 
military requirements not met by the systems in the core program and on 
the capability of the system to use prior investments in technologies, 
infrastructure, and battle-management capabilities that are incorporated 
in, or associated with, the systems in the core program.
    (2) <<NOTE: Notice.>> The Secretary may not proceed with the 
development of a follow-on theater missile defense system beyond the 
Demonstration/Validation stage of development unless the Secretary 
designates that system as a part of the core program under this section 
and submits to the congressional defense committees notice of that 
designation. <<NOTE: Reports.>> The Secretary shall include with any 
such notification a report describing--
            (A) the requirements for the system and the specific threats 
        that such system is designed to counter;
            (B) how the system will relate to, support, and build upon 
        existing core systems;
            (C) the planned acquisition strategy for the system; and
            (D) a preliminary estimate of total program cost for that 
        system and the effect of development and acquisition of such 
        system on Department of Defense budget projections.

    (e) Program Accountability Report.--(1) As part of the annual report 
of the Ballistic Missile Defense Organization required by section 224 of 
Public Law 101-189 (10 U.S.C. 2431 note), the Secretary of Defense shall 
describe the technical milestones, the

[[Page 110 STAT. 231]]

schedule, and the cost of each phase of development and acquisition 
(together with total estimated program costs) for each core and follow-
on theater missile defense program.
    (2) As part of such report, the Secretary shall describe, with 
respect to each program covered in the report, any variance in the 
technical milestones, program schedule milestones, and costs for the 
program compared with the information relating to that program in the 
report submitted in the previous year and in the report submitted in the 
first year in which that program was covered.
    (f) <<NOTE: Certification.>> Reports on TMD System Limitations Under 
ABM Treaty.--(1) Whenever, after January 1, 1993, the Secretary of 
Defense issues a certification with respect to the compliance of a 
particular Theater Missile Defense system with the ABM Treaty, the 
Secretary shall transmit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a copy of such certification. Such transmittal shall be 
made not later than 30 days after the date on which such certification 
is issued, except that in the case of a certification issued before the 
date of the enactment of this Act, such transmittal shall be made not 
later than 60 days after the date of the enactment of this Act.

    (2) If a certification under paragraph (1) is based on application 
of a policy concerning United States compliance with the ABM Treaty that 
differs from the policy described in section 235(b)(1), the Secretary 
shall include with the transmittal under that paragraph a report 
providing a detailed assessment of--
            (A) how the policy applied differs from the policy described 
        in section 235(b)(1); and
            (B) how the application of that policy (rather than the 
        policy described in section 235(b)(1)) will affect the cost, 
        schedule, and performance of that system.
SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN 
                        INTERNATIONAL AGREEMENT CONCERNING THEATER 
                        MISSILE DEFENSE SYSTEMS.

    (a) Findings.--(1) Congress hereby reaffirms--
            (A) the finding in section 234(a)(7) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
        Stat. 1595; 10 U.S.C. 2431 note) that the ABM Treaty was not 
        intended to, and does not, apply to or limit research, 
        development, testing, or deployment of missile defense systems, 
        system upgrades, or system components that are designed to 
        counter modern theater ballistic missiles, regardless of the 
        capabilities of such missiles, unless those systems, system 
        upgrades, or system components are tested against or have 
        demonstrated capabilities to counter modern strategic ballistic 
        missiles; and
            (B) the statement in section 232 of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
        Stat. 2700) that the United States shall not be bound by any 
        international agreement entered into by the President that would 
        substantively modify the ABM Treaty unless the agreement is 
        entered into pursuant to the treaty making power of the 
        President under the Constitution.

    (2) Congress also finds that the demarcation standard described in 
subsection (b)(1) for compliance of a missile defense system,

[[Page 110 STAT. 232]]

system upgrade, or system component with the ABM Treaty is based upon 
current technology.
    (b) Sense of Congress Concerning Compliance Policy.--It is the sense 
of Congress that--
            (1) unless a missile defense system, system upgrade, or 
        system component (including one that exploits data from space-
        based or other external sensors) is flight tested in an ABM-
        qualifying flight test (as defined in subsection (e)), that 
        system, system upgrade, or system component has not, for 
        purposes of the ABM Treaty, been tested in an ABM mode nor been 
        given capabilities to counter strategic ballistic missiles and, 
        therefore, is not subject to any application, limitation, or 
        obligation under the ABM Treaty; and
            (2) any international agreement that would limit the 
        research, development, testing, or deployment of missile defense 
        systems, system upgrades, or system components that are designed 
        to counter modern theater ballistic missiles in a manner that 
        would be more restrictive than the compliance criteria specified 
        in paragraph (1) should be entered into only pursuant to the 
        treaty making powers of the President under the Constitution.

    (c) Prohibition on Funding.--Funds appropriated or otherwise made 
available to the Department of Defense for fiscal year 1996 may not be 
obligated or expended to implement an agreement, or any understanding 
with respect to interpretation of the ABM Treaty, between the United 
States and any of the independent states of the former Soviet Union 
entered into after January 1, 1995, that--
            (1) would establish a demarcation between theater missile 
        defense systems and anti-ballistic missile systems for purposes 
        of the ABM Treaty; or
            (2) would restrict the performance, operation, or deployment 
        of United States theater missile defense systems.

    (d) Exceptions.--Subsection (c) does not apply--
            (1) to the extent provided by law in an Act enacted after 
        this Act;
            (2) to expenditures to implement that portion of any such 
        agreement or understanding that implements the policy set forth 
        in subsection (b)(1); or
            (3) to expenditures to implement any such agreement or 
        understanding that is approved as a treaty or by law.

    (e) ABM-Qualifying Flight Test Defined.--For purposes of this 
section, an ABM-qualifying flight test is a flight test against a 
ballistic missile which, in that flight test, exceeds (1) a range of 
3,500 kilometers, or (2) a velocity of 5 kilometers per second.

SEC. 236. BALLISTIC MISSILE DEFENSE COOPERATION WITH ALLIES.

    It is in the interest of the United States to develop its own 
missile defense capabilities in a manner that will permit the United 
States to complement the missile defense capabilities developed and 
deployed by its allies and possible coalition partners. Therefore, the 
Congress urges the President--
            (1) to pursue high-level discussions with allies of the 
        United States and selected other states on the means and methods 
        by which the parties on a bilateral basis can cooperate in the 
        development, deployment, and operation of ballistic missile 
        defenses;

[[Page 110 STAT. 233]]

            (2) to take the initiative within the North Atlantic Treaty 
        Organization to develop consensus in the Alliance for a timely 
        deployment of effective ballistic missile defenses by the 
        Alliance; and
            (3) in the interim, to seek agreement with allies of the 
        United States and selected other states on steps the parties 
        should take, consistent with their national interests, to reduce 
        the risks posed by the threat of limited ballistic missile 
        attacks, such steps to include--
                    (A) the sharing of early warning information derived 
                from sensors deployed by the United States and other 
                states;
                    (B) the exchange on a reciprocal basis of technical 
                data and technology to support both joint development 
                programs and the sale and purchase of missile defense 
                systems and components; and
                    (C) operational level planning to exploit current 
                missile defense capabilities and to help define future 
                requirements.

SEC. 237. ABM TREATY DEFINED.

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

SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

    The Missile Defense Act of 1991 (10 U.S.C. 2431 note) is repealed.

         Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 251. <<NOTE: 10 USC 221 note.>> BALLISTIC MISSILE DEFENSE PROGRAM 
            ELEMENTS.

    (a) Elements Specified.--In the budget justification materials 
submitted to Congress in support of the Department of Defense budget for 
any fiscal year after fiscal year 1996 (as submitted with the budget of 
the President under section 1105(a) of title 31, United States Code), 
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 Lower Tier (Area) system.
            (3) The Theater High-Altitude Area Defense (THAAD) system.
            (4) The Navy Upper Tier (Theater Wide) system.
            (5) The Corps Surface-to-Air Missile (SAM) system.
            (6) Other Theater Missile Defense Activities.
            (7) National Missile Defense.
            (8) Follow-On and Support Technologies.

    (b) Treatment of Core Theater Missile Defense Programs.--Amounts 
requested for core theater missile defense programs specified in section 
234 shall be specified in individual, dedicated program elements, and 
amounts appropriated for such

[[Page 110 STAT. 234]]

programs shall be available only for activities covered by those program 
elements.
    (c) BM/C<SUP>3</SUP>I Programs.--Amounts requested for programs, 
projects, and activities involving battle management, command, control, 
communications, and intelligence (BM/C<SUP>3</SUP>I) shall be included 
in the ``Other Theater Missile Defense Activities'' program element or 
the ``National Missile Defense'' program element, as determined on the 
basis of the primary objectives involved.
    (d) Management and Support.--Each program element shall include 
requests for the amounts necessary for the management and support of the 
programs, projects, and activities contained in that program element.

SEC. 252. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

    Subsection (a) of section 237 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1600) is amended 
to read as follows:
    ``(a) <<NOTE: Certification.>> Testing of Theater Missile Defense 
Interceptors.--(1) The Secretary of Defense may not approve a theater 
missile defense interceptor program proceeding beyond the
low-rate initial production acquisition stage until the Secretary 
certifies to the congressional defense committees that such program has 
successfully completed initial operational test and evaluation.

    ``(2) In order to be certified under paragraph (1) as having been 
successfully completed, the initial operational test and evaluation 
conducted with respect to an interceptors program must have included 
flight tests--
            ``(A) that were conducted with multiple interceptors and 
        multiple targets in the presence of realistic countermeasures; 
        and
            ``(B) the results of which demonstrate the achievement by 
        the interceptors of the baseline performance thresholds.

    ``(3) For purposes of this subsection, the baseline performance 
thresholds with respect to a program are the weapons systems performance 
thresholds specified in the baseline description for the system 
established (pursuant to section 2435(a)(1) of title 10, United States 
Code) before the program entered the engineering and manufacturing 
development stage.
    ``(4) The number of flight tests described in paragraph (2) that are 
required in order to make the certification under paragraph (1) shall be 
a number determined by the Secretary of Defense to be sufficient for the 
purposes of this section.
    ``(5) The Secretary may augment live-fire testing to demonstrate 
weapons system performance goals for purposes of the certification under 
paragraph (1) through the use of modeling and simulation that is 
validated by ground and flight testing.''.

SEC. 253. REPEAL OF MISSILE DEFENSE PROVISIONS.

    The following provisions of law are repealed:
            (1) Section 222 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431 
        note).
            (2) Section 225 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 614).
            (3) Section 226 of the National Defense Authorization Act 
        for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 
        1057; 10 U.S.C. 2431 note).

[[Page 110 STAT. 235]]

            (4) Section 8123 of the Department of Defense Appropriations 
        Act, 1989 (Public Law 100-463; 102 Stat. 2270-40).
            (5) Section 8133 of the Department of Defense Appropriations 
        Act, 1992 (Public Law 102-172; 105 Stat. 1211).
            (6) Section 234 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1595; 10 
        U.S.C. 2431 note).
            (7) Section 242 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1603; 10 
        U.S.C. 2431 note).
            (8) Section 235 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701; 10 
        U.S.C. 221 note).
            (9) Section 2609 of title 10, United States Code.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

    (a) Analysis Required.--The Secretary of Defense shall perform an 
analysis of the full range of precision-guided munitions in production 
and in research, development, test, and evaluation in order to determine 
the following:
            (1) The numbers and types of precision-guided munitions that 
        are needed to provide complementary capabilities against each 
        target class.
            (2) The feasibility of carrying out joint development and 
        procurement of additional types of munitions by more than one of 
        the Armed Forces.
            (3) The feasibility of integrating a particular precision-
        guided munition on multiple service platforms.
            (4) The economy and effectiveness of continuing the 
        acquisition of--
                    (A) interim precision-guided munitions; or
                    (B) precision-guided munitions that, as a result of 
                being procured in decreasing numbers to meet decreasing 
                quantity requirements, have increased in cost per unit 
                by more than 50 percent over the cost per unit for such 
                munitions as of December 1, 1991.

    (b) Report.--(1) Not later than April 15, 1996, the Secretary shall 
submit to Congress a report on the findings and other results of the 
analysis.
    (2) The report shall include a detailed discussion of the process by 
which the Department of Defense--
            (A) approves the development of new precision-guided 
        munitions;
            (B) avoids duplication and redundancy in the precision-
        guided munitions programs of the Army, Navy, Air Force, and 
        Marine Corps;
            (C) ensures rationality in the relationship between the 
        funding plans for precision-guided munitions modernization for 
        fiscal years following fiscal year 1996 and the costs of such 
        modernization for those fiscal years; and
            (D) identifies by name and function each person responsible 
        for approving each new precision-guided munition for initial 
        low-rate production.

[[Page 110 STAT. 236]]

    (c) Funding Limitation.--Funds authorized to be appropriated by this 
Act may not be expended for research, development, test, and evaluation 
or procurement of interim precision-guided munitions after April 15, 
1996, unless the Secretary of Defense has submitted the report under 
subsection (b).
    (d) Interim Precision-Guided Munition Defined.--For purposes of 
subsection (c), a precision-guided munition is an interim precision-
guided munition if the munition is being procured in fiscal year 1996, 
but funding is not proposed for additional procurement of the munition 
in the fiscal years after fiscal year 1996 that are covered by the 
future years defense program submitted to Congress in 1995 under section 
221(a) of title 10, United States Code.

SEC. 262. <<NOTE: 10 USC 113 note.>> REVIEW OF C<SUP>4</SUP>I BY 
            NATIONAL RESEARCH COUNCIL.

    (a) Review by National Research Council.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall request the National Research Council of the National Academy of 
Sciences to conduct a comprehensive review of current and planned 
service and defense-wide programs for command, control, communications, 
computers, and intelligence (C<SUP>4</SUP>I) with a special focus on 
cross-service and inter-service issues.
    (b) Matters To Be Assessed in Review.--The review shall address the 
following:
            (1) The match between the capabilities provided by current 
        service and defense-wide C<SUP>4</SUP>I programs and the actual 
        needs of users of these programs.
            (2) The interoperability of service and defense-wide 
        C<SUP>4</SUP>I systems that are planned to be operational in the 
        future.
            (3) The need for an overall defense-wide architecture for 
        C<SUP>4</SUP>I.
            (4) Proposed strategies for ensuring that future 
        C<SUP>4</SUP>I acquisitions are compatible and interoperable 
        with an overall architecture.
            (5) Technological and administrative aspects of the 
        C<SUP>4</SUP>I modernization effort to determine the soundness 
        of the underlying plan and the extent to which it is consistent 
        with concepts for joint military operations in the future.

    (c) Two-Year Period for Conducting Review.--The review shall be 
conducted over the two-year period beginning on the date on which the 
National Research Council and the Secretary of Defense enter into a 
contract or other agreement for the conduct of the review.
    (d) Reports.--(1) In the contract or other agreement for the conduct 
of the review, the Secretary of Defense shall provide that the National 
Research Council shall submit to the Department of Defense and Congress 
interim reports and progress updates on a regular basis as the review 
proceeds. A final report on the review shall set forth the findings, 
conclusions, and recommendations of the Council for defense-wide and 
service C<SUP>4</SUP>I programs and shall be submitted to the Committee 
on Armed Services of the Senate, the Committee on National Security of 
the House of Representatives, and the Secretary of Defense.
    (2) To the maximum degree possible, the final report shall be 
submitted in unclassified form with classified annexes as necessary.

[[Page 110 STAT. 237]]

    (e) Interagency Cooperation With Study.--All military departments, 
defense agencies, and other components of the Department of Defense 
shall cooperate fully with the National Research Council in its 
activities in carrying out the review under this section.
    (f) Expedited Processing of Security Clearances for Study.--For the 
purpose of facilitating the commencement of the study under this 
section, the Secretary of Defense shall expedite to the fullest degree 
possible the processing of security clearances that are necessary for 
the National Research Council to conduct the study.
    (g) Funding.--Of the amount authorized to be appropriated in section 
201 for defense-wide activities, $900,000 shall be available for the 
study under this section.
SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH ACCOUNTS OF 
                        MILITARY DEPARTMENTS.

    (a) Analysis Required.--The Secretary of Defense shall conduct an 
analysis of the cost and effectiveness of consolidating the basic 
research accounts of the military departments. The analysis shall 
determine potential infrastructure savings and other benefits of co-
locating and consolidating the management of basic research.
    (b) Deadline.--On or before March 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the analysis conducted under subsection (a).
SEC. 264. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO FISCAL 
                        YEAR FOR ANNUAL REPORT ON CERTAIN 
                        CONTRACTS TO COLLEGES AND UNIVERSITIES.

    Section 2361(c)(2) of title 10, United States Code, is amended--
            (1) by striking out ``calendar year'' and inserting in lieu 
        thereof ``fiscal year''; and
            (2) by striking out ``the year after the year'' and 
        inserting in lieu thereof ``the fiscal year after the fiscal 
        year''.
SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

    (a) Findings.--Congress finds the following:
            (1) It is in the Nation's long-term national security 
        interests for the United States to maintain preeminence in the 
        area of aeronautical research and test capabilities.
            (2) Continued advances in aeronautical science and 
        engineering are critical to sustaining the strategic and 
        tactical air superiority of the United States and coalition 
        forces, as well as United States economic security and 
        international aerospace leadership.
            (3) It is in the national security and economic interests of 
        the United States and the budgetary interests of the Department 
        of Defense for the department to encourage the establishment of 
        active partnerships between the department and other Government 
        agencies, academic institutions, and private industry to 
        develop, maintain, and enhance aeronautical research and test 
        capabilities.

    (b) Review.--The Secretary of Defense shall conduct a comprehensive 
review of the aeronautical research and test facilities and capabilities 
of the United States in order to assess the current condition of such 
facilities and capabilities.

[[Page 110 STAT. 238]]

    (c) Report.--(1) Not later than March 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a report 
setting forth in detail the findings of the review required by 
subsection (b).
    (2) The report shall include the following:
            (A) The options for providing affordable, operable, 
        reliable, and responsive long-term aeronautical research and 
        test capabilities for military and civilian purposes and for the 
        organization and conduct of such capabilities within the 
        Department or through shared operations with other Government 
        agencies, academic institutions, and private industry.
            (B) The projected costs of such options, including costs of 
        acquisition and technical and financial arrangements (including 
        the use of Government facilities for reimbursable private use).
            (C) Recommendations on the most efficient and economic means 
        of developing, maintaining, and continually modernizing 
        aeronautical research and test capabilities to meet current, 
        planned, and prospective military and civilian needs.

                        Subtitle F--Other Matters

SEC. 271. ADVANCED LITHOGRAPHY PROGRAM.

    Section 216 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2693) is amended--
            (1) in subsection (a), by striking out ``to help achieve'' 
        and all that follows through the end of the subsection and 
        inserting in lieu thereof ``to ensure that lithographic 
        processes being developed by United States-owned companies or 
        United States-incorporated companies operating in the United 
        States will lead to superior performance electronics systems for 
        the Department of Defense.'';
            (2) in subsection (b), by adding at the end the following 
        new paragraph:

    ``(3) The Director of the Defense Advanced Research Projects Agency 
may set priorities and funding levels for various technologies being 
developed for the ALP and shall consider funding recommendations made by 
the Semiconductor Industry Association as being advisory in nature.'';
            (3) in subsection (c)--
                    (A) by inserting ``Defense'' before ``Advanced''; 
                and
                    (B) by striking out ``ARPA'' both places it appears 
                and inserting in lieu thereof ``DARPA''; and
            (4) by adding at the end the following:

    ``(d) Definitions.--In this section:
            ``(1) The term `United States-owned company' means a company 
        the majority ownership or control of which is held by citizens 
        of the United States.
            ``(2) The term `United States-incorporated company' means a 
        company that the Secretary of Defense finds is incorporated in 
        the United States and has a parent company that is incorporated 
        in a country--
                    ``(A) that affords to United States-owned companies 
                opportunities, comparable to those afforded to any other 
                company, to participate in any joint venture similar to

[[Page 110 STAT. 239]]

                those authorized under section 28 of the National 
                Institute of Standards and Technology Act (15 U.S.C. 
                278n);
                    ``(B) that affords to United States-owned companies 
                local investment opportunities comparable to those 
                afforded to any other company; and
                    ``(C) that affords adequate and effective protection 
                for the intellectual property rights of United States-
                owned companies.''.
SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG-M) SYSTEM.

    (a) Limitations.--(1) The Secretary of the Army may not obligate 
more than $280,000,000 (based on fiscal year 1995 constant dollars) to 
develop and deliver for test and evaluation by the Army the following 
items:
            (A) 44 enhanced fiber optic guided test missiles.
            (B) 256 fully operational enhanced fiber optic guided 
        missiles.
            (C) 12 fully operational fire units.

    (2) The Secretary of the Army may not spend funds for the enhanced 
fiber optic guided missile (EFOG-M) system after September 30, 1998, if 
the items described in paragraph (1) have not been delivered to the Army 
by that date and at a cost not greater than the amount set forth in 
paragraph (1).
    (3) The Secretary of the Army may not enter into an advanced 
development phase for the EFOG-M system unless--
            (A) an advanced concept technology demonstration of the 
        system has been successfully completed; and
            (B) the Secretary certifies to the congressional defense 
        committees that there is a requirement for the EFOG-M system 
        that is supported by a cost and operational effectiveness 
        analysis.

    (b) Government-Furnished Equipment.--The Secretary of the Army shall 
ensure that all Government-furnished equipment that the Army agrees to 
provide under the contract for the EFOG-M system is provided to the 
prime contractor in accordance with the terms of the contract.
SEC. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE 
                        EXPERIMENTAL PROGRAM TO STIMULATE 
                        COMPETITIVE RESEARCH.

    Subparagraph (A) of section 257(d)(2) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2705; 10 U.S.C. 2358 note) is amended to read as follows:
            ``(A) the average annual amount of all Department of Defense 
        obligations for science and engineering research and development 
        that were in effect with institutions of higher education in the 
        State for the three fiscal years preceding the fiscal year for 
        which the designation is effective or for the last three fiscal 
        years for which statistics are available is less than the amount 
        determined by multiplying 60 percent times the amount equal to 
        \1/50\ of the total average annual amount of all Department of 
        Defense obligations for science and engineering research and 
        development that were in effect with institutions of higher 
        education in the United States for such three preceding or last 
        fiscal years, as the case may be (to be determined in 
        consultation with the Secretary of Defense);''.

[[Page 110 STAT. 240]]

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

    (a) In General.--The Secretary of Defense shall undertake an 
initiative to coordinate and strengthen the cruise missile defense 
programs of the Department of Defense to ensure that the United States 
develops and deploys affordable and operationally effective defenses 
against existing and future cruise missile threats to United States 
military forces and operations.
    (b) Coordination With Ballistic Missile Defense Efforts.--In 
carrying out subsection (a), the Secretary shall ensure that, to the 
extent practicable, the cruise missile defense programs of the 
Department of Defense and the ballistic missile defense programs of the 
Department of Defense are coordinated with each other and that those 
programs are mutually supporting.

    (c) Defenses Against Existing and Near-Term Cruise Missile 
Threats.--As part of the initiative under subsection (a), the Secretary 
shall ensure that appropriate existing and planned air defense systems 
are upgraded to provide an affordable and operationally effective 
defense against existing and near-term cruise missile threats to United 
States military forces and operations.
    (d) Defenses Against Advanced Cruise Missiles.--As part of the 
initiative under subsection (a), the Secretary shall undertake a well-
coordinated development program to support the future deployment of 
cruise missile defense systems that are affordable and operationally 
effective against advanced cruise missiles, including cruise missiles 
with low observable features.
    (e) Implementation Plan.--Not later than the date on which the 
President submits the budget for fiscal year 1997 under section 1105 of 
title 31, United States Code, the Secretary of Defense shall submit to 
the congressional defense committees a detailed plan, in unclassified 
and classified forms, as necessary, for carrying out this section. The 
plan shall include an assessment of the following:
            (1) The systems of the Department of Defense that currently 
        have or could have cruise missile defense capabilities and 
        existing programs of the Department of Defense to improve these 
        capabilities.
            (2) The technologies that could be deployed in the near- to 
        mid-term to provide significant advances over existing cruise 
        missile defense capabilities and the investments that would be 
        required to ready those technologies for deployment.
            (3) The cost and operational tradeoffs, if any, between (A) 
        upgrading existing air and missile defense systems, and (B) 
        accelerating follow-on systems with significantly improved 
        capabilities against advanced cruise missiles.
            (4) The organizational and management changes that would 
        strengthen and further coordinate the cruise missile defense 
        programs of the Department of Defense, including the 
        disadvantages, if any, of implementing such changes.

    (f) Definition.--For the purposes of this section, the term ``cruise 
missile defense programs'' means the programs, projects, and activities 
of the military departments, the Advanced Research Projects Agency, and 
the Ballistic Missile Defense Organization relating to development and 
deployment of defenses against cruise missiles.

[[Page 110 STAT. 241]]

SEC. 275. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
                        PROGRAM.

    Section 802 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701) <<NOTE: 10 USC 2358 
note.>> is amended--
            (1) in subsections (a) and (b), by striking out ``shall'' 
        both places it appears and inserting in lieu thereof ``may''; 
        and
            (2) in subsection (e), by striking out the sentence 
        beginning with ``Such selection process''.

SEC. 276. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2525 of title 10, United States Code, is 
amended as follows:
            (1) The heading is amended by striking out the second and 
        third words.
            (2) Subsection (a) is amended--
                    (A) by striking out ``Science and''; and
                    (B) by inserting after the first sentence the 
                following: ``The Secretary shall use the joint planning 
                process of the directors of the Department of Defense 
                laboratories in establishing the program.''.
            (3) Subsection (c) is amended--
                    (A) by inserting ``(1)'' after ``(c) Execution.--''; 
                and
                    (B) by adding at the end the following:

    ``(2) The Secretary shall seek, to the extent practicable, the 
participation of manufacturers of manufacturing equipment in the 
projects under the program.''.
            (4) Subsection (d) is amended--
                    (A) in paragraph (2)--
                          (i) by striking out ``or'' at the end of 
                      subparagraph (A);
                          (ii) by striking out the period at the end of 
                      subparagraph (B) and inserting in lieu thereof ``; 
                      or''; and
                          (iii) by adding at the end the following new 
                      subparagraph:
            ``(C) will be carried out by an institution of higher 
        education.''; and
                    (B) by adding at the end the following new 
                paragraphs:

    ``(3) At least 25 percent of the funds available for the program 
each fiscal year shall be used for awarding grants and entering into 
contracts, cooperative agreements, and other transactions on a cost-
share basis under which the ratio of recipient cost to Government cost 
is two to one.
    ``(4) If the requirement of paragraph (3) cannot be met by July 15 
of a fiscal year, the Under Secretary of Defense for Acquisition and 
Technology may waive the requirement and obligate the balance of the 
funds available for the program for that fiscal year on a cost-share 
basis under which the ratio of recipient cost to Government cost is less 
than two to one. Before implementing any such waiver, 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 
the reasons for the waiver.''.

[[Page 110 STAT. 242]]

    (b) Clerical Amendment.--The item relating to section 2525 in the 
table of sections at the beginning of subchapter IV of chapter 148 of 
title 10, United States Code, is amended to read as follows:

``2525. Manufacturing Technology Program.''.

SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LABORATORIES 
                        AND TEST AND EVALUATION CENTERS.

    (a) Five-Year Plan.--The Secretary of Defense, acting through the 
Vice Chief of Staff of the Army, the Vice Chief of Naval Operations, and 
the Vice Chief of Staff of the Air Force (in their roles as test and 
evaluation executive agent board of directors) shall develop a five-year 
plan to consolidate and restructure the laboratories and test and 
evaluation centers of the Department of Defense.
    (b) Objective.--The plan shall set forth the specific actions needed 
to consolidate the laboratories and test and evaluation centers into as 
few laboratories and centers as is practical and possible, in the 
judgment of the Secretary, by October 1, 2005.
    (c) Previously Developed Data Required To Be Used.--In developing 
the plan, the Secretary shall use the following:
            (1) Data and results obtained by the Test and Evaluation 
        Joint Cross-Service Group and the Laboratory Joint Cross-Service 
        Group in developing recommendations for the 1995 report of the 
        Defense Base Closure and Realignment Commission.
            (2) The report dated March 1994 on the consolidation and 
        streamlining of the test and evaluation infrastructure, 
        commissioned by the test and evaluation board of directors, 
        along with all supporting data and reports.

    (d) Matters To Be Considered.--In developing the plan, the Secretary 
shall consider, at a minimum, the following:
            (1) Consolidation of common support functions, including the 
        following:
                    (A) Aircraft (fixed wing and rotary) support.
                    (B) Weapons support.
                    (C) Space systems support.
                    (D) Support of command, control, communications, 
                computers, and intelligence.
            (2) The extent to which any military construction, 
        acquisition of equipment, or modernization of equipment is 
        planned at the laboratories and centers.
            (3) The encroachment on the laboratories and centers by 
        residential and industrial expansion.
            (4) The total cost to the Federal Government of continuing 
        to operate the laboratories and centers.
            (5) The cost savings and program effectiveness of locating 
        laboratories and centers at the same sites.
            (6) Any loss of expertise resulting from the consolidations.
            (7) Whether any legislation is neccessary to provide the 
        Secretary with any additional authority necessary to accomplish 
        the downsizing and consolidation of the laboratories and 
        centers.

    (e) Report.--Not later than May 1, 1996, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
plan. The report shall include an identification of any additional 
legislation that the Secretary considers necessary in order for the 
Secretary to accomplish the downsizing and consolidation of the 
laboratories and centers.

[[Page 110 STAT. 243]]

    (f) Limitation.--Of the amounts appropriated or otherwise made 
available pursuant to an authorization of appropriations in section 201 
for the central test and evaluation investment development program, not 
more than 75 percent may be obligated before the report required by 
subsection (e) is submitted to Congress.

SEC. 278. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

    (a) Requirement.--The Secretary of Defense shall ensure that, in 
evaluating proposals submitted in response to a solicitation issued for 
a contract for the T-38 Avionics Upgrade Program, the proposal of an 
entity may not be considered unless--
            (1) in the case of an entity that conducts substantially all 
        of its business in a foreign country, the foreign country 
        provides equal access to similar contract solicitations in that 
        country to United States entities; and
            (2) in the case of an entity that conducts business in the 
        United States but that is owned or controlled by a foreign 
        government or by an entity incorporated in a foreign country, 
        the foreign government or foreign country of incorporation 
        provides equal access to similar contract solicitations in that 
        country to United States entities.

    (b) Definition.--In this section, the term ``United States entity'' 
means an entity that is owned or controlled by persons a majority of 
whom are United States citizens.

SEC. 279. GLOBAL POSITIONING SYSTEM.

    (a) Conditional Prohibition on Use of Selective Availability 
Feature.--Except as provided in subsection (b), after
May 1, 1996, the Secretary of Defense may not (through use of the 
feature known as ``selective availability'') deny access of non-
Department of Defense users to the full capabilities of the Global 
Positioning System.
    (b) Plan.--Subsection (a) shall cease to apply upon submission by 
the Secretary of Defense to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives of a plan for enhancement of the Global Positioning 
System that provides for--
            (1) development and acquisition of effective capabilities to 
        deny hostile military forces the ability to use the Global 
        Positioning System without hindering the ability of United 
        States military forces and civil users to have access to and use 
        of the system, together with a specific date by which those 
        capabilities could be operational; and
            (2) development and acquisition of receivers for the Global 
        Positioning System and other techniques for weapons and weapon 
        systems that provide substantially improved resistance to 
        jamming and other forms of electronic interference or 
        disruption, together with a specific date by which those 
        receivers and other techniques could be operational with United 
        States military forces.
SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT FOR THE 
                        NATIONAL SCIENCE CENTER FOR COMMUNICATIONS 
                        AND ELECTRONICS.

    (a) Purpose.--Subsection (b)(2) of section 1459 of the Department of 
Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 763) is 
amended by striking out ``to make available'' and all that follows and 
inserting in lieu thereof ``to provide for the

[[Page 110 STAT. 244]]

management, operation, and maintenance of those areas in the national 
science center that are designated for use by the Army and to provide 
incidental support for the operation of those areas in the center that 
are designated for general use.''.
    (b) Authority for Support.--Subsection (c) of such section is 
amended to read as follows:
    ``(c) National Science Center.--(1) The Secretary may manage, 
operate, and maintain facilities at the center under terms and 
conditions prescribed by the Secretary for the purpose of conducting 
educational outreach programs in accordance with chapter 111 of title 
10, United States Code.
    ``(2) The Foundation, or NSC Discovery Center, Incorporated, a 
nonprofit corporation of the State of Georgia, shall submit to the 
Secretary for review and approval all matters pertaining to the 
acquisition, design, renovation, equipping, and furnishing of the 
center, including all plans, specifications, contracts, sites, and 
materials for the center.''.
    (c) Authority for Acceptance of Gifts and Fundraising.--Subsection 
(d) of such section is amended to read as follows:
    ``(d) Gifts and Fundraising.--(1) Subject to paragraph (3), the 
Secretary may accept a conditional or unconditional donation of money or 
property that is made for the benefit of, or in connection with, the 
center.
    ``(2) Notwithstanding any other provision of law, the Secretary may 
endorse, promote, and assist the efforts of the Foundation and NSC 
Discovery Center, Incorporated, to obtain--
            ``(A) funds for the management, operation, and maintenance 
        of the center; and
            ``(B) donations of exhibits, equipment, and other property 
        for use in the center.

    ``(3) The Secretary may not accept a donation under this subsection 
that is made subject to--
            ``(A) any condition that is inconsistent with an applicable 
        law or regulation; or
            ``(B) except to the extent provided in appropriations Acts, 
        any condition that would necessitate an expenditure of 
        appropriated funds.

    ``(4) <<NOTE: Regulations.>> The Secretary shall prescribe in 
regulations the criteria to be used in determining whether to accept a 
donation. The Secretary shall include criteria to ensure that acceptance 
of a donation does not establish an unfavorable appearance regarding the 
fairness and objectivity with which the Secretary or any other officer 
or employee of the Department of Defense performs official 
responsibilities and does not compromise or appear to compromise the 
integrity of a Government program or any official involved in that 
program.''.

    (d) Authorized Uses.--Such section is amended--
            (1) by striking out subsection (f);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) in paragraph (1) of subsection (f), as redesignated by 
        paragraph (2), by inserting ``areas designated for use by the 
        Army in'' after ``The Secretary may make''.

    (e) Alternative of Additional Development and Management.--Such 
section, as amended by subsection (d), is further amended by adding at 
the end the following:
    ``(g) Alternative or Additional Development and Management of the 
Center.--(1) The Secretary may enter into an agreement with NSC 
Discovery Center, Incorporated, to develop, manage,

[[Page 110 STAT. 245]]

and maintain a national science center under this section. In entering 
into an agreement with NSC Discovery Center, Incorporated, the Secretary 
may agree to any term or condition to which the Secretary is authorized 
under this section to agree for purposes of entering into an agreement 
with the Foundation.
    ``(2) The Secretary may exercise the authority under paragraph (1) 
in addition to, or instead of, exercising the authority provided under 
this section to enter into an agreement with the Foundation.''.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $18,746,695,000.
            (2) For the Navy, $21,493,155,000.
            (3) For the Marine Corps, $2,521,822,000.
            (4) For the Air Force, $18,719,277,000.
            (5) For Defense-wide activities, $9,910,476,000.
            (6) For the Army Reserve, $1,129,191,000.
            (7) For the Naval Reserve, $868,342,000.
            (8) For the Marine Corps Reserve, $100,283,000.
            (9) For the Air Force Reserve, $1,516,287,000.
            (10) For the Army National Guard, $2,361,808,000.
            (11) For the Air National Guard, $2,760,121,000.
            (12) For the Defense Inspector General, $138,226,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,521,000.
            (14) For Environmental Restoration, Defense, $1,422,200,000.
            (15) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $680,432,000.
            (16) For Medical Programs, Defense, $9,876,525,000.
            (17) For support for the 1996 Summer Olympics, $15,000,000.
            (18) For Cooperative Threat Reduction programs, 
        $300,000,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $50,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Business Operations Fund, $878,700,000.
            (2) For the National Defense Sealift Fund, $1,024,220,000.

[[Page 110 STAT. 246]]

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1996 
from the Armed Forces Retirement Home Trust Fund the sum of $59,120,000 
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 1996 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.

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

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

SEC. 305. CIVIL AIR PATROL.

    Of the amounts authorized to be appropriated pursuant to this Act, 
there shall be made available to the Civil Air Patrol $24,500,000, of 
which $14,704,000 shall be made available for the Civil Air Patrol 
Corporation.

                   Subtitle B--Depot-Level Activities

SEC. 311. <<NOTE: 10 USC 2464 note.>> POLICY REGARDING PERFORMANCE OF 
            DEPOT-LEVEL MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF 
            DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense does not have a comprehensive 
        policy regarding the performance of depot-level maintenance and 
        repair of military equipment.
            (2) The absence of such a policy has caused the Congress to 
        establish guidelines for the performance of such functions.
            (3) It is essential to the national security of the United 
        States that the Department of Defense maintain an organic 
        capability within the department, including skilled personnel, 
        technical competencies, equipment, and facilities, to perform 
        depot-level maintenance and repair of military equipment in 
        order to ensure that the Armed Forces of the United States are 
        able to meet training, operational, mobilization, and emergency 
        requirements without impediment.
            (4) The organic capability of the Department of Defense to 
        perform depot-level maintenance and repair of military equipment 
        must satisfy known and anticipated core mainte

[[Page 110 STAT. 247]]

        nance and repair requirements across the full range of peacetime 
        and wartime scenarios.
            (5) Although it is possible that savings can be achieved by 
        contracting with private-sector sources for the performance of 
        some work currently performed by Department of Defense depots, 
        the Department of Defense has not determined the type or amount 
        of work that should be performed under contract with private-
        sector sources nor the relative costs and benefits of 
        contracting for the performance of such work by those sources.

    (b) Sense of Congress.--It is the sense of Congress that there is a 
compelling need for the Department of Defense to articulate known and 
anticipated core maintenance and repair requirements, to organize the 
resources of the Department of Defense to meet those requirements 
economically and efficiently, and to determine what work should be 
performed by the private sector and how such work should be managed.

    (c) <<NOTE: Reports.>> Requirement for Policy.--Not later than March 
31, 1996, the Secretary of Defense shall develop and report to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a comprehensive policy on the 
performance of depot-level maintenance and repair for the Department of 
Defense that maintains the capability described in section 2464 of title 
10, United States Code.

    (d) Content of Policy.--In developing the policy, the Secretary of 
Defense shall do each of the following:
            (1) Identify for each military department, with the 
        concurrence of the Secretary of that military department, those 
        depot-level maintenance and repair activities that are necessary 
        to ensure the depot-level maintenance and repair capability as 
        required by section 2464 of title 10, United States Code.
            (2) Provide for performance of core depot-level maintenance 
        and repair capabilities in facilities owned and operated by the 
        United States.
            (3) Provide for the core capabilities to include sufficient 
        skilled personnel, equipment, and facilities that--
                    (A) is of the proper size (i) to ensure a ready and 
                controlled source of technical competence and repair and 
                maintenance capability necessary to meet the 
                requirements of the National Military Strategy and other 
                requirements for responding to mobilizations and 
                military contingencies, and (ii) to provide for rapid 
                augmentation in time of emergency; and
                    (B) is assigned sufficient workload to ensure cost 
                efficiency and technical proficiency in time of peace.
            (4) Address environmental liability.
            (5) In the case of depot-level maintenance and repair 
        workloads in excess of the workload required to be performed by 
        Department of Defense depots, provide for competition for those 
        workloads between public and private entities when there is 
        sufficient potential for realizing cost savings based on 
        adequate private-sector competition and technical capabilities.
            (6) Address issues concerning exchange of technical data 
        between the Federal Government and the private sector.
            (7) Provide for, in the Secretary's discretion and after 
        consultation with the Secretaries of the military departments, 
        the transfer from one military department to another, in accord

[[Page 110 STAT. 248]]

        ance with merit-based selection processes, workload that 
        supports the core depot-level maintenance and repair 
        capabilities in facilities owned and operated by the United 
        States.
            (8) Require that, in any competition for a workload (whether 
        among private-sector sources or between depot-level activities 
        of the Department of Defense and private-sector sources), bids 
        are evaluated under a methodology that ensures that appropriate 
        costs to the Government and the private sector are identified.
            (9) Provide for the performance of maintenance and repair 
        for any new weapons systems defined as core, under section 2464 
        of title 10, United States Code, in facilities owned and 
        operated by the United States.

    (e) Considerations.--In developing the policy, the Secretary shall 
take into consideration the following matters:
            (1) The national security interests of the United States.
            (2) The capabilities of the public depots and the 
        capabilities of businesses in the private sector to perform the 
        maintenance and repair work required by the Department of 
        Defense.
            (3) Any applicable recommendations of the Defense Base 
        Closure and Realignment Commission that are required to be 
        implemented under the Defense Base Closure and Realignment Act 
        of 1990.
            (4) The extent to which the readiness of the Armed Forces 
        would be affected by a necessity to construct new facilities to 
        accommodate any redistribution of depot-level maintenance and 
        repair workloads that is made in accordance with the 
        recommendation of the Defense Base Closure and Realignment 
        Commission, under the Defense Base Closure and Realignment Act 
        of 1990, that such workloads be consolidated at Department of 
        Defense depots or private-sector facilities.
            (5) Analyses of costs and benefits of alternatives, 
        including a comparative analysis of--
                    (A) the costs and benefits, including any readiness 
                implications, of any proposed policy to convert to 
                contractor performance of depot-level maintenance and 
                repair workloads where the workload is being performed 
                by Department of Defense personnel; and
                    (B) the costs and benefits, including any readiness 
                implications, of a policy to transfer depot-level 
                maintenance and repair workloads among depots.

    (f) Repeal of 60/40 Requirement and Requirement Relating to 
Competition.--(1) Sections 2466 and 2469 of title 10, United States 
Code, are repealed.
    (2) The table of sections at the beginning of chapter 146 of such 
title is amended by striking out the items relating to sections 2466 and 
2469.
    (3) <<NOTE: Effective date.>> The amendments made by paragraphs (1) 
and (2) shall take effect on the date (after the date of the enactment 
of this Act) on which legislation is enacted that contains a provision 
that specifically states one of the following:
            (A) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense that was 
        submitted by the Secretary of Defense to the Committee on Armed 
        Services of the Senate and the Committee on National Security of 
        the House of Representatives pursuant to section

[[Page 110 STAT. 249]]

        311 of the National Defense Authorization Act for Fiscal Year 
        1996 is approved.''; or
            (B) ``The policy on the performance of depot-level 
        maintenance and repair for the Department of Defense that was 
        submitted by the Secretary of Defense to the Committee on Armed 
        Services of the Senate and the Committee on National Security of 
        the House of Representatives pursuant to section 311 of the 
        National Defense Authorization Act for Fiscal Year 1996 is 
        approved with the following modifications:'' (with the 
        modifications being stated in matter appearing after the colon).

    (g) Annual Report.--If legislation referred to in subsection (f)(3) 
is enacted, the Secretary of Defense shall, not later than March 1 of 
each year (beginning with the year after the year in which such 
legislation is enacted), submit to Congress a report that--
            (1) specifies depot maintenance core capability requirements 
        determined in accordance with the procedures established to 
        comply with the policy prescribed pursuant to
        subsections (d)(2) and (d)(3);
            (2) specifies the planned amount of workload to be 
        accomplished by the depot-level activities of each military 
        department in support of those requirements for the following 
        fiscal year; and
            (3) identifies the planned amount of workload, which--
                    (A) shall be measured by direct labor hours and by 
                amounts to be expended; and
                    (B) shall be shown separately for each commodity 
                group.

    (h) Review by General Accounting Office.--(1) The Secretary shall 
make available to the Comptroller General of the United States all 
information used by the Department of Defense in developing the policy 
under subsections (c) through (e) of this section.

    (2) <<NOTE: Reports.>> Not later than 45 days after the date on 
which the Secretary submits to Congress the report required by 
subsection (c), the Comptroller General shall transmit to Congress a 
report containing a detailed analysis of the Secretary's proposed policy 
as reported under such subsection.

    (i) Report on Depot-Level Maintenance and Repair Workload.--Not 
later than March 31, 1996, the Secretary of Defense shall submit to 
Congress a report on the depot-level maintenance and repair workload of 
the Department of Defense. The report shall, to the maximum extent 
practicable, include the following:
            (1) An analysis of the need for and effect of the 
        requirement under section 2466 of title 10, United States Code, 
        that no more than 40 percent of the depot-level maintenance and 
        repair work of the Department of Defense be contracted for 
        performance by non-Government personnel, including a description 
        of the effect on military readiness and the national security 
        resulting from that requirement and a description of any 
        specific difficulties experienced by the Department of Defense 
        as a result of that requirement.
            (2) An analysis of the distribution during the five fiscal 
        years ending with fiscal year 1995 of the depot-level 
        maintenance and repair workload of the Department of Defense 
        between depot-level activities of the Department of Defense and 
        non-Government personnel, measured by direct labor hours

[[Page 110 STAT. 250]]

        and by amounts expended, and displayed, for that five-year 
        period and for each year of that period, so as to show (for each 
        military department (and separately for the Navy and Marine 
        Corps)) such distribution.
            (3) A projection of the distribution during the five fiscal 
        years beginning with fiscal year 1997 of the depot-level 
        maintenance and repair workload of the Department of Defense 
        between depot-level activities of the Department of Defense and 
        non-Government personnel, measured by direct labor hours and by 
        amounts expended, and displayed, for that five-year period and 
        for each year of that period, so as to show (for each military 
        department (and separately for the Navy and Marine Corps)) such 
        distribution that would be accomplished under a new policy as 
        required under subsection (c).

    (j) Other Review by General Accounting Office.--(1) The Comptroller 
General of the United States shall conduct an independent audit of the 
findings of the Secretary of Defense in the report under subsection (i). 
The Secretary of Defense shall provide to the Comptroller General for 
such purpose all information used by the Secretary in preparing such 
report.
    (2) <<NOTE: Reports.>> Not later than 45 days after the date on 
which the Secretary of Defense submits to Congress the report required 
under subsection (i), the Comptroller General shall transmit to Congress 
a report containing a detailed analysis of the report submitted under 
that subsection.

SEC. 312. MANAGEMENT OF DEPOT EMPLOYEES.

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

``Sec. 2472. Management of depot employees

    ``(b) Annual Report.--Not later than December 1 of each fiscal year, 
the Secretary of Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a report on the number of employees employed and 
expected to be employed by the Department of Defense during that fiscal 
year to perform depot-level maintenance and repair of materiel. The 
report shall indicate whether that number is sufficient to perform the 
depot-level maintenance and repair functions for which funds are 
expected to be provided for that fiscal year for performance by 
Department of Defense employees.''.
    (b) Transfer of Subsection.--Subsection (b) of section 2466 of title 
10, United States Code, is transferred to section 2472 of such title, as 
added by subsection (a), redesignated as subsection (a), and inserted 
after the section heading.
    (c) <<NOTE: 10 USC 2472 note.>> Submission of Initial Report.--The 
report under subsection (b) of section 2472 of title 10, United States 
Code, as added by subsection (a), for fiscal year 1996 shall be 
submitted not later than March 15, 1996 (notwithstanding the date 
specified in such subsection).


[[Page 110 STAT. 251]]



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

``2472. Management of depot employees.''.

SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
                        SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
                        PRODUCTION AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking 
out ``September 30, 1995'' and inserting in lieu thereof ``September 30, 
1996''.
SEC. 314. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING USE 
                        OF CORE LOGISTICS FUNCTIONS WAIVER.

    Section 2464(b) of title 10, United States Code, is amended by 
striking out paragraphs (3) and (4) and inserting in lieu thereof the 
following new paragraph:
    ``(3) A waiver under paragraph (2) may not take effect until the end 
of the 30-day period beginning on the date on which the Secretary 
submits a report on the waiver to the Committee on Armed Services and 
the Committee on Appropriations of the Senate and the Committee on 
National Security and the Committee on Appropriations of the House of 
Representatives.''.

                  Subtitle C--Environmental Provisions

SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERVICES 
                        UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Requirements.--(1) Section 2701(d) of title 10, United States 
Code, is amended to read as follows:
    ``(d) Services of Other Agencies.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may enter into agreements on a reimbursable or other basis with 
        any other Federal agency, or with any State or local government 
        agency, to obtain the services of the agency to assist the 
        Secretary in carrying out any of the Secretary's 
        responsibilities under this section. Services which may be 
        obtained under this subsection include the identification, 
        investigation, and cleanup of any off-site contamination 
        resulting from the release of a hazardous substance or waste at 
        a facility under the Secretary's jurisdiction.
            ``(2) Limitation on reimbursable agreements.--An agreement 
        with an agency under paragraph (1) may not provide for 
        reimbursement of the agency for regulatory enforcement 
        activities.''.

    (2)(A) <<NOTE: 10 USC 2701 note.>> Except as provided in 
subparagraph (B), the total amount of funds available for reimbursements 
under agreements entered into under section 2710(d) of title 10, United 
States Code, as amended by paragraph (1), in fiscal year 1996 may not 
exceed $10,000,000.

    (B) The Secretary of Defense may pay in fiscal year 1996 an amount 
for reimbursements under agreements referred to in subparagraph (A) in 
excess of the amount specified in that subparagraph for that fiscal year 
if--
            (i) <<NOTE: Certification.>> the Secretary certifies to 
        Congress that the payment of the amount under this subparagraph 
        is essential for the

[[Page 110 STAT. 252]]

        management of the Defense Environmental Restoration Program 
        under chapter 160 of title 10, United States Code; and
            (ii) a period of 60 days has expired after the date on which 
        the certification is received by Congress.

    (b) <<NOTE: 10 USC 2706 note.>> Report on Services Obtained.--The 
Secretary of Defense shall include in the report submitted to Congress 
with respect to fiscal year 1998 under section 2706(a) of title 10, 
United States Code, information on the services, if any, obtained by the 
Secretary during fiscal year 1996 pursuant to each agreement on a 
reimbursable basis entered into with a State or local government agency 
under section 2701(d) of title 10, United States Code, as amended by 
subsection (a). The information shall include a description of the 
services obtained under each agreement and the amount of the 
reimbursement provided for the services.
SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE ENVIRONMENTAL 
                        RESTORATION ACCOUNT.

    Section 2703(e) of title 10, United States Code, is amended to read 
as follows:
    ``(e) Amounts Recovered.--The following amounts shall be credited to 
the transfer account:
            ``(1) Amounts recovered under CERCLA for response actions of 
        the Secretary.
            ``(2) Any other amounts recovered by the Secretary or the 
        Secretary of the military department concerned from a 
        contractor, insurer, surety, or other person to reimburse the 
        Department of Defense for any expenditure for environmental 
        response activities.''.

SEC. 323. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

    (a) Goal for Certain DERA Expenditures.--It shall be the goal of the 
Secretary of Defense to limit, by the end of fiscal year 1997, spending 
for administration, support, studies, and investigations associated with 
the Defense Environmental Restoration Account to 20 percent of the total 
funding for that account.
    (b) Report.--Not later than April 1, 1996, the Secretary shall 
submit to Congress a report that contains specific, detailed information 
on--
            (1) the extent to which the Secretary has attained the goal 
        described in subsection (a) as of the date of the submission of 
        the report; and
            (2) if the Secretary has not attained such goal by such 
        date, the actions the Secretary plans to take to attain the 
        goal.
SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION ADVISORY 
                        BOARDS.

    (a) Regulations.--Paragraph (2) of subsection (d) of section 2705 of 
title 10, United States Code, is amended to read as follows:
    ``(2)(A) The Secretary shall prescribe regulations regarding the 
establishment, characteristics, composition, and funding of restoration 
advisory boards pursuant to this subsection.
    ``(B) The issuance of regulations under subparagraph (A) shall not 
be a precondition to the establishment of restoration advisory boards 
under this subsection.''.
    (b) Funding for Administrative Expenses.--Paragraph (3) of such 
subsection is amended to read as follows:

[[Page 110 STAT. 253]]

    ``(3) The Secretary may authorize the commander of an installation 
(or, if there is no such commander, an appropriate official of the 
Department of Defense designated by the Secretary) to pay routine 
administrative expenses of a restoration advisory board established for 
that installation. Such payments shall be made from funds available 
under subsection (g).''.
    (c) Technical Assistance.--Such section is further amended by 
striking out subsection (e) and inserting in lieu thereof the following 
new subsection (e):
    ``(e) Technical Assistance.--(1) The Secretary may, upon the request 
of the technical review committee or restoration advisory board for an 
installation, authorize the commander of the installation (or, if there 
is no such commander, an appropriate official of the Department of 
Defense designated by the Secretary) to obtain for the committee or 
advisory board, as the case may be, from private sector sources 
technical assistance for interpreting scientific and engineering issues 
with regard to the nature of environmental hazards at the installation 
and the restoration activities conducted, or proposed to be conducted, 
at the installation. The commander of an installation (or, if there is 
no such commander, an appropriate official of the Department of Defense 
designated by the Secretary) shall use funds made available under 
subsection (g) for obtaining assistance under this paragraph.

    ``(2) The commander of an installation (or, if there is no such 
commander, an appropriate official of the Department of Defense 
designated by the Secretary) may obtain technical assistance under 
paragraph (1) for a technical review committee or restoration advisory 
board only if--
            ``(A) the technical review committee or restoration advisory 
        board demonstrates that the Federal, State, and local agencies 
        responsible for overseeing environmental restoration at the 
        installation, and available Department of Defense personnel, do 
        not have the technical expertise necessary for achieving the 
        objective for which the technical assistance is to be obtained; 
        or
            ``(B) the technical assistance--
                    ``(i) is likely to contribute to the efficiency, 
                effectiveness, or timeliness of environmental 
                restoration activities at the installation; and
                    ``(ii) is likely to contribute to community 
                acceptance of environmental restoration activities at 
                the installation.''.

    (d) Funding.--(1) Such section is further amended by adding at the 
end the following new subsection:
    ``(g) Funding.--The Secretary shall, to the extent provided in 
appropriations Acts, make funds available for administrative expenses 
and technical assistance under this section using funds in the following 
accounts:
            ``(1) In the case of a military installation not approved 
        for closure pursuant to a base closure law, the Defense 
        Environmental Restoration Account established under section 
        2703(a) of this title.
            ``(2) In the case of an installation approved for closure 
        pursuant to such a law, the Department of Defense Base Closure 
        Account 1990 established under section 2906(a) of the Defense 
        Base Closure and Realignment Act of 1990 (part A of title XXIX 
        of Public Law 101-510; 10 U.S.C. 2687 note).''.

[[Page 110 STAT. 254]]

    (2)(A) <<NOTE: 10 USC 2705 note.>> Subject to subparagraph (B), the 
total amount of funds made available under section 2705(g) of title 10, 
United States Code, as added by paragraph (1), for fiscal year 1996 may 
not exceed $6,000,000.

    (B) Amounts may not be made available under subsection (g) of such 
section 2705 after September 15, 1996, unless the Secretary of Defense 
publishes proposed final or interim final regulations required under 
subsection (d) of such section, as amended by subsection (a).
    (e) Definition.--Such section is further amended by adding after 
subsection (g) (as added by subsection (d)) the following new 
subsection:
    ``(h) Definition.--In this section, the term `base closure law' 
means the following:
            ``(1) Title II of the Defense Authorization Amendments and 
        Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
        2687 note).
            ``(2) 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).
            ``(3) Section 2687 of this title.''.

    (f) Reports on Activities of Technical Review Committees and 
Restoration Advisory Boards.--Section 2706(a)(2) of title 10, United 
States Code, is amended by adding at the end the following:
            ``(J) A statement of the activities, if any, including 
        expenditures for administrative expenses and technical 
        assistance under section 2705 of this title, of the technical 
        review committee or restoration advisory board established for 
        the installation under such section during the preceding fiscal 
        year.''.

SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

    (a) <<NOTE: 33 USC 1322 note.>> Purposes.--The purposes of this 
section are to--
            (1) enhance the operational flexibility of vessels of the 
        Armed Forces domestically and internationally;
            (2) stimulate the development of innovative vessel pollution 
        control technology; and
            (3) advance the development by the United States Navy of 
        environmentally sound ships.

    (b) Uniform National Discharge Standards Development.--Section 312 
of the Federal Water Pollution Control Act (33 U.S.C. 1322) is amended 
by adding at the end the following:
    ``(n) Uniform National Discharge Standards for Vessels of the Armed 
Forces.--
            ``(1) Applicability.--This subsection shall apply to vessels 
        of the Armed Forces and discharges, other than sewage, 
        incidental to the normal operation of a vessel of the Armed 
        Forces, unless the Secretary of Defense finds that compliance 
        with this subsection would not be in the national security 
        interests of the United States.
            ``(2) Determination of discharges required to be controlled 
        by marine pollution control devices.--
                    ``(A) In general.--The Administrator and the 
                Secretary of Defense, after consultation with the 
                Secretary of the department in which the Coast Guard is 
                operating, the Secretary of Commerce, and interested 
                States, shall jointly determine the discharges 
                incidental to the normal

[[Page 110 STAT. 255]]

                operation of a vessel of the Armed Forces for which it 
                is reasonable and practicable to require use of a marine 
                pollution control device to mitigate adverse impacts on 
                the marine environment. Notwithstanding subsection 
                (a)(1) of section 553 of title 5, United States Code, 
                the Administrator and the Secretary of Defense shall 
                promulgate the determinations in accordance with such 
                section. The Secretary of Defense shall require the use 
                of a marine pollution control device on board a vessel 
                of the Armed Forces in any case in which it is 
                determined that the use of such a device is reasonable 
                and practicable.
                    ``(B) Considerations.--In making a determination 
                under subparagraph (A), the Administrator and the 
                Secretary of Defense shall take into consideration--
                          ``(i) the nature of the discharge;
                          ``(ii) the environmental effects of the 
                      discharge;
                          ``(iii) the practicability of using the marine 
                      pollution control device;
                          ``(iv) the effect that installation or use of 
                      the marine pollution control device would have on 
                      the operation or operational capability of the 
                      vessel;
                          ``(v) applicable United States law;
                          ``(vi) applicable international standards; and
                          ``(vii) the economic costs of the installation 
                      and use of the marine pollution control device.
            ``(3) Performance standards for marine pollution control 
        devices.--
                    ``(A) In general.--For each discharge for which a 
                marine pollution control device is determined to be 
                required under paragraph (2), the Administrator and the 
                Secretary of Defense, in consultation with the Secretary 
                of the department in which the Coast Guard is operating, 
                the Secretary of State, the Secretary of Commerce, other 
                interested Federal agencies, and interested States, 
                shall jointly promulgate Federal standards of 
                performance for each marine pollution control device 
                required with respect to the discharge. Notwithstanding 
                subsection (a)(1) of section 553 of title 5, United 
                States Code, the Administrator and the Secretary of 
                Defense shall promulgate the standards in accordance 
                with such section.
                    ``(B) Considerations.--In promulgating standards 
                under this paragraph, the Administrator and the 
                Secretary of Defense shall take into consideration the 
                matters set forth in paragraph (2)(B).
                    ``(C) Classes, types, and sizes of vessels.--The 
                standards promulgated under this paragraph may--
                          ``(i) distinguish among classes, types, and 
                      sizes of vessels;
                          ``(ii) distinguish between new and existing 
                      vessels; and
                          ``(iii) provide for a waiver of the 
                      applicability of the standards as necessary or 
                      appropriate to a particular class, type, age, or 
                      size of vessel.
            ``(4) Regulations for use of marine pollution control 
        devices.--The Secretary of Defense, after consultation with the 
        Administrator and the Secretary of the department in which the 
        Coast Guard is operating, shall promulgate such regulations

[[Page 110 STAT. 256]]

        governing the design, construction, installation, and use of 
        marine pollution control devices on board vessels of the Armed 
        Forces as are necessary to achieve the standards promulgated 
        under paragraph (3).
            ``(5) Deadlines; effective date.--
                    ``(A) Determinations.--The Administrator and the 
                Secretary of Defense shall--
                          ``(i) make the initial determinations under 
                      paragraph (2) not later than 2 years after the 
                      date of the enactment of this subsection; and
                          ``(ii) every 5 years--
                                    ``(I) review the determinations; and
                                    ``(II) if necessary, revise the 
                                determinations based on significant new 
                                information.
                    ``(B) Standards.--The Administrator and the 
                Secretary of Defense shall--
                          ``(i) promulgate standards of performance for 
                      a marine pollution control device under paragraph 
                      (3) not later than 2 years after the date of a 
                      determination under paragraph (2) that the marine 
                      pollution control device is required; and
                          ``(ii) every 5 years--
                                    ``(I) review the standards; and
                                    ``(II) if necessary, revise the 
                                standards, consistent with paragraph 
                                (3)(B) and based on significant new 
                                information.
                    ``(C) Regulations.--The Secretary of Defense shall 
                promulgate regulations with respect to a marine 
                pollution control device under paragraph (4) as soon as 
                practicable after the Administrator and the Secretary of 
                Defense promulgate standards with respect to the device 
                under paragraph (3), but not later than 1 year after the 
                Administrator and the Secretary of Defense promulgate 
                the standards. The regulations promulgated by the 
                Secretary of Defense under paragraph (4) shall become 
                effective upon promulgation unless another effective 
                date is specified in the regulations.
                    ``(D) Petition for review.--The Governor of any 
                State may submit a petition requesting that the 
                Secretary of Defense and the Administrator review a 
                determination under paragraph (2) or a standard under 
                paragraph (3), if there is significant new information, 
                not considered previously, that could reasonably result 
                in a change to the particular determination or standard 
                after consideration of the matters set forth in 
                paragraph (2)(B). The petition shall be accompanied by 
                the scientific and technical information on which the 
                petition is based. The Administrator and the Secretary 
                of Defense shall grant or deny the petition not later 
                than 2 years after the date of receipt of the petition.
            ``(6) Effect on other laws.--
                    ``(A) Prohibition on regulation by states or 
                political subdivisions of states.--Beginning on the 
                effective date of--
                          ``(i) a determination under paragraph (2) that 
                      it is not reasonable and practicable to require 
                      use of a marine pollution control device regarding 
                      a particular

[[Page 110 STAT. 257]]

                      discharge incidental to the normal operation of a 
                      vessel of the Armed Forces; or
                          ``(ii) regulations promulgated by the 
                      Secretary of Defense under paragraph (4);
                except as provided in paragraph (7), neither a State nor 
                a political subdivision of a State may adopt or enforce 
                any statute or regulation of the State or political 
                subdivision with respect to the discharge or the design, 
                construction, installation, or use of any marine 
                pollution control device required to control discharges 
                from a vessel of the Armed Forces.
                    ``(B) Federal laws.--This subsection shall not 
                affect the application of section 311 to discharges 
                incidental to the normal operation of a vessel.
            ``(7) Establishment of state no-discharge zones.--
                    ``(A) State prohibition.--
                          ``(i) In general.--After the effective date 
                      of--
                                    ``(I) a determination under 
                                paragraph (2) that it is not reasonable 
                                and practicable to require use of a 
                                marine pollution control device 
                                regarding a particular discharge 
                                incidental to the normal operation of a 
                                vessel of the Armed Forces; or
                                    ``(II) regulations promulgated by 
                                the Secretary of Defense under paragraph 
                                (4);
                      if a State determines that the protection and 
                      enhancement of the quality of some or all of the 
                      waters within the State require greater 
                      environmental protection, the State may prohibit 1 
                      or more discharges incidental to the normal 
                      operation of a vessel, whether treated or not 
                      treated, into the waters. No prohibition shall 
                      apply until the Administrator makes the 
                      determinations described in subclauses (II) and 
                      (III) of subparagraph (B)(i).
                          ``(ii) Documentation.--To the extent that a 
                      prohibition under this paragraph would apply to 
                      vessels of the Armed Forces and not to other types 
                      of vessels, the State shall document the technical 
                      or environmental basis for the distinction.
                    ``(B) Prohibition by the administrator.--
                          ``(i) <<NOTE: Regulations.>> In general.--Upon 
                      application of a State, the Administrator shall by 
                      regulation prohibit the discharge from a vessel of 
                      1 or more discharges incidental to the normal 
                      operation of a vessel, whether treated or not 
                      treated, into the waters covered by the 
                      application if the Administrator determines that--
                                    ``(I) the protection and enhancement 
                                of the quality of the specified waters 
                                within the State require a prohibition 
                                of the discharge into the waters;
                                    ``(II) adequate facilities for the 
                                safe and sanitary removal of the 
                                discharge incidental to the normal 
                                operation of a vessel are reasonably 
                                available for the waters to which the 
                                prohibition would apply; and
                                    ``(III) the prohibition will not 
                                have the effect of discriminating 
                                against a vessel of the Armed Forces by 
                                reason of the ownership or operation

[[Page 110 STAT. 258]]

                                by the Federal Government, or the 
                                military function, of the vessel.
                          ``(ii) Approval or disapproval.--The 
                      Administrator shall approve or disapprove an 
                      application submitted under clause (i) not later 
                      than 90 days after the date on which the 
                      application is submitted to the Administrator. 
                      Notwithstanding clause (i)(II), the Administrator 
                      shall not disapprove an application for the sole 
                      reason that there are not adequate facilities to 
                      remove any discharge incidental to the normal 
                      operation of a vessel from vessels of the Armed 
                      Forces.
                    ``(C) Applicability to foreign flagged vessels.--A 
                prohibition under this paragraph--
                          ``(i) shall not impose any design, 
                      construction, manning, or equipment standard on a 
                      foreign flagged vessel engaged in innocent passage 
                      unless the prohibition implements a generally 
                      accepted international rule or standard; and
                          ``(ii) that relates to the prevention, 
                      reduction, and control of pollution shall not 
                      apply to a foreign flagged vessel engaged in 
                      transit passage unless the prohibition implements 
                      an applicable international regulation regarding 
                      the discharge of oil, oily waste, or any other 
                      noxious substance into the waters.
            ``(8) Prohibition relating to vessels of the armed forces.--
        After the effective date of the regulations promulgated by the 
        Secretary of Defense under paragraph (4), it shall be unlawful 
        for any vessel of the Armed Forces subject to the regulations 
        to--
                    ``(A) operate in the navigable waters of the United 
                States or the waters of the contiguous zone, if the 
                vessel is not equipped with any required marine 
                pollution control device meeting standards established 
                under this subsection; or
                    ``(B) discharge overboard any discharge incidental 
                to the normal operation of a vessel in waters with 
                respect to which a prohibition on the discharge has been 
                established under paragraph (7).
            ``(9) Enforcement.--This subsection shall be enforceable, as 
        provided in subsections (j) and (k), against any agency of the 
        United States responsible for vessels of the Armed Forces 
        notwithstanding any immunity asserted by the agency.''.

    (c) Conforming Amendments.--
            (1) Definitions.--Section 312(a) of the Federal Water 
        Pollution Control Act (33 U.S.C. 1322(a)) is amended--
                    (A) in paragraph (8)--
                          (i) by striking ``or''; and
                          (ii) by inserting ``or agency of the United 
                      States,'' after ``association,'';
                    (B) in paragraph (11), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(12) `discharge incidental to the normal operation of a 
        vessel'--
                    ``(A) means a discharge, including--
                          ``(i) graywater, bilge water, cooling water, 
                      weather deck runoff, ballast water, oil water 
                      separator effluent,

[[Page 110 STAT. 259]]

                      and any other pollutant discharge from the 
                      operation of a marine propulsion system, shipboard 
                      maneuvering system, crew habitability system, or 
                      installed major equipment, such as an aircraft 
                      carrier elevator or a catapult, or from a 
                      protective, preservative, or absorptive 
                      application to the hull of the vessel; and
                          ``(ii) a discharge in connection with the 
                      testing, maintenance, and repair of a system 
                      described in clause (i) whenever the vessel is 
                      waterborne; and
                    ``(B) does not include--
                          ``(i) a discharge of rubbish, trash, garbage, 
                      or other such material discharged overboard;
                          ``(ii) an air emission resulting from the 
                      operation of a vessel propulsion system, motor 
                      driven equipment, or incinerator; or
                          ``(iii) a discharge that is not covered by 
                      part 122.3 of title 40, Code of Federal 
                      Regulations (as in effect on the date of the 
                      enactment of subsection (n));
            ``(13) `marine pollution control device' means any equipment 
        or management practice, for installation or use on board a 
        vessel of the Armed Forces, that is--
                    ``(A) designed to receive, retain, treat, control, 
                or discharge a discharge incidental to the normal 
                operation of a vessel; and
                    ``(B) determined by the Administrator and the 
                Secretary of Defense to be the most effective equipment 
                or management practice to reduce the environmental 
                impacts of the discharge consistent with the 
                considerations set forth in subsection (n)(2)(B); and
            ``(14) `vessel of the Armed Forces' means--
                    ``(A) any vessel owned or operated by the Department 
                of Defense, other than a time or voyage chartered 
                vessel; and
                    ``(B) any vessel owned or operated by the Department 
                of Transportation that is designated by the Secretary of 
                the department in which the Coast Guard is operating as 
                a vessel equivalent to a vessel described in 
                subparagraph (A).''.
            (2) Enforcement.--The first sentence of section 312(j) of 
        the Federal Water Pollution Control Act (33 U.S.C. 1322(j)) is 
        amended--
                    (A) by striking ``of this section or'' and inserting 
                a comma; and
                    (B) by striking ``of this section shall'' and 
                inserting ``, or subsection (n)(8) shall''.
            (3) Other definitions.--Subparagraph (A) of the second 
        sentence of section 502(6) of the Federal Water Pollution 
        Control Act (33 U.S.C. 1362(6)) is amended by striking `` 
        `sewage from vessels' '' and inserting `` `sewage from vessels 
        or a discharge incidental to the normal operation of a vessel of 
        the Armed Forces' ''.

    (d) <<NOTE: 33 USC 1322 note.>> Cooperation in Standards 
Development.--The Administrator of the Environmental Protection Agency 
and the Secretary of Defense may, by mutual agreement, with or without 
reimbursement, provide for the use of information, reports, personnel, 
or other resources of the Environmental Protection Agency or the 
Department of Defense to carry out section 312(n) of the Federal

[[Page 110 STAT. 260]]

Water Pollution Control Act (as added by subsection (b)), including the 
use of the resources--
            (1) to determine--
                    (A) the nature and environmental effect of 
                discharges incidental to the normal operation of a 
                vessel of the Armed Forces;
                    (B) the practicability of using marine pollution 
                control devices on vessels of the Armed Forces; and
                    (C) the effect that installation or use of marine 
                pollution control devices on vessels of the Armed Forces 
                would have on the operation or operational capability of 
                the vessels; and
            (2) to establish performance standards for marine pollution 
        control devices on vessels of the Armed Forces.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY SYSTEM.

    (a) Cooperation With Other Entities.--Section 2482 of title 10, 
United States Code, is amended--
            (1) in the section heading, by striking out ``private'';
            (2) by inserting ``(a) Private Operation.--'' before 
        ``Private persons''; and
            (3) by adding at the end the following new subsection:

    ``(b) Contracts With Other Agencies and Instrumentalities.--(1) The 
Defense Commissary Agency, and any other agency of the Department of 
Defense that supports the operation of the commissary system, may enter 
into a contract or other agreement with another department, agency, or 
instrumentality of the Department of Defense or another Federal agency 
to provide services beneficial to the efficient management and operation 
of the commissary system.
    ``(2) A commissary store operated by a nonappropriated fund 
instrumentality of the Department of Defense shall be operated in 
accordance with section 2484 of this title. Subject to such section, the 
Secretary of Defense may authorize a transfer of goods, supplies, and 
facilities of, and funds appropriated for, the Defense Commissary Agency 
or any other agency of the Department of Defense that supports the 
operation of the commissary system to a nonappropriated fund 
instrumentality for the operation of a commissary store.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 147 of such title is 
amended to read as follows:

``2482. Commissary stores: operation.''.

SEC. 332. LIMITED RELEASE OF COMMISSARY STORES SALES INFORMATION TO 
            MANUFACTURERS, DISTRIBUTORS, AND OTHER VENDORS DOING 
            BUSINESS WITH DEFENSE COMMISSARY AGENCY.

    Section 2487(b) of title 10, United States Code, is amended in the 
second sentence by inserting before the period the following: ``unless 
the agreement is between the Defense Commissary Agency and a 
manufacturer, distributor, or other vendor doing business with the 
Agency and is restricted to information directly related

[[Page 110 STAT. 261]]

to  merchandise  provided  by  that  manufacturer,  distributor,  or 
vendor''.
SEC. 333. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY 
                        NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Economical Distribution.--Subsection (a)(1) of section 2488 of 
title 10, United States Code, is amended by inserting after ``most 
competitive source'' the following: ``and distributed in the most 
economical manner''.
    (b) Determination of Most Economical Distribution Method.--Such 
section is further amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:

    ``(c)(1) In the case of covered alcoholic beverage purchases of 
distilled spirits, to determine whether a nonappropriated fund 
instrumentality of the Department of Defense provides the most 
economical method of distribution to package stores, the Secretary of 
Defense shall consider all components of the distribution costs incurred 
by the nonappropriated fund instrumentality, such as overhead costs 
(including costs associated with management, logistics, administration, 
depreciation, and utilities), the costs of carrying inventory, and 
handling and distribution costs.
    ``(2) If the use of a private distributor would subject covered 
alcoholic beverage purchases of distilled spirits to direct or indirect 
State taxation, a nonappropriated fund instrumentality shall be 
considered to be the most economical method of distribution regardless 
of the results of the determination under paragraph (1).
    ``(3) The Secretary shall use the agencies performing audit 
functions on behalf of the armed forces and the Inspector General of the 
Department of Defense to make determinations under this subsection.''.
SEC. 334. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO OVERSEAS 
                        LOCATIONS.

    (a) In General.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2643. Commissary and exchange services: transportation overseas

    ``The Secretary of Defense shall authorize the officials responsible 
for operation of commissaries and military exchanges to negotiate 
directly with private carriers for the most cost-effective 
transportation of commissary and exchange supplies by sea without 
relying on the Military Sealift Command or the Military Traffic 
Management Command. Section 2631 of this title, regarding the preference 
for vessels of the United States or belonging to the United States in 
the transportation of supplies by sea, shall apply to the negotiation of 
transportation contracts under the authority of this section.''.

[[Page 110 STAT. 262]]

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

``2643. Commissary and exchange services: transportation overseas.''.

SEC. 335. <<NOTE: 10 USC 2241 note.>>  DEMONSTRATION PROJECT FOR 
                        UNIFORM FUNDING OF MORALE, WELFARE, AND 
                        RECREATION ACTIVITIES AT CERTAIN MILITARY 
                        INSTALLATIONS.

    (a) Demonstration Project Required.--(1) The Secretary of Defense 
shall conduct a demonstration project to evaluate the feasibility of 
using only nonappropriated funds to support morale, welfare, and 
recreation programs at military installations in order to facilitate the 
procurement of property and services for those programs and the 
management of employees used to carry out those programs.
    (2) Under the demonstration project--
            (A) procurements of property and services for programs 
        referred to in paragraph (1) may be carried out in accordance 
        with laws and regulations applicable to procurements paid for 
        with nonappropriated funds; and
            (B) appropriated funds available for such programs may be 
        expended in accordance with laws applicable to expenditures of 
        nonappropriated funds as if the appropriated funds were 
        nonappropriated funds.

    (3) <<NOTE: Regulations.>> The Secretary shall prescribe regulations 
to carry out paragraph (2). The regulations shall provide for financial 
management and accounting of appropriated funds expended in accordance 
with subparagraph (B) of such paragraph.

    (b) Covered Military Installations.--The Secretary shall select not 
less than three and not more than six military installations to 
participate in the demonstration project.
    (c) <<NOTE: Termination date.>> Period of Demonstration Project.--
The demonstration project shall terminate not later than September 30, 
1998.

    (d) Effect on Employees.--For the purpose of testing fiscal 
accounting procedures, the Secretary may convert, for the duration of 
the demonstration project, the status of an employee who carries out a 
program referred to in subsection (a)(1) from the status of an employee 
paid by appropriated funds to the status of a nonappropriated fund 
instrumentality employee, except that such conversion may occur only--
            (1) if the employee whose status is to be converted--
                    (A) is fully informed of the effects of such 
                conversion on the terms and conditions of the employment 
                of that employee for purposes of title 5, United States 
                Code, and on the benefits provided to that employee 
                under such title; and
                    (B) consents to such conversion; or
            (2) in a manner which does not affect such terms and 
        conditions of employment or such benefits.

    (e) Reports.--(1) Not later than six months after the date of the 
enactment of this Act, the Secretary shall submit to Congress an interim 
report on the implementation of this section.
    (2) Not later than December 31, 1998, the Secretary shall submit to 
Congress a final report on the results of the demonstration project. The 
report shall include a comparison of--
            (A) the cost incurred under the demonstration project in 
        using employees paid by appropriated funds together with

[[Page 110 STAT. 263]]

        nonappropriated fund instrumentality employees to carry out the 
        programs referred to in subsection (a)(1); and
            (B) an estimate of the cost that would have been incurred if 
        only nonappropriated fund instrumentality employees had been 
        used to carry out such programs.
SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY STORES.

    (a) In General.--(1) Chapter 147 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2490a. Combined exchange and commissary stores

    ``(a) Authority.--The Secretary of Defense may authorize a 
nonappropriated fund instrumentality to operate a military exchange and 
a commissary store as a combined exchange and commissary store on a 
military installation.
    ``(b) Limitations.--(1) Not more than ten combined exchange and 
commissary stores may be operated pursuant to this section.
    ``(2) The Secretary may select a military installation for the 
operation of a combined exchange and commissary store under this section 
only if--
            ``(A) the installation is to be closed, or has been or is to 
        be realigned, under a base closure law; or
            ``(B) a military exchange and a commissary store are 
        operated at the installation by separate entities at the time 
        of, or immediately before, such selection and it is not 
        economically feasible to continue that separate operation.

    ``(c) <<NOTE: Texas.>> Operation at Carswell Field.--Combined 
exchange and commissary stores operated under this section shall include 
the combined exchange and commissary store that is operated at the Naval 
Air Station Fort Worth, Joint Reserve Center, Carswell Field, Texas, 
under the authority provided in section 375 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2736).

    ``(d) Adjustments and Surcharges.--Adjustments to, and surcharges 
on, the sales price of a grocery food item sold in a combined exchange 
and commissary store under this section shall be provided for in 
accordance with the same laws that govern such adjustments and 
surcharges for items sold in a commissary store of the Defense 
Commissary Agency.
    ``(e) Use of Appropriated Funds.--(1) If a nonappropriated fund 
instrumentality incurs a loss in operating a combined exchange and 
commissary store at a military installation under this section as a 
result of the requirement set forth in subsection (d), the Secretary may 
authorize a transfer of funds available for the Defense Commissary 
Agency to the nonappropriated fund instrumentality to offset the loss.
    ``(2) The total amount of appropriated funds transferred during a 
fiscal year to support the operation of a combined exchange and 
commissary store at a military installation under this section may not 
exceed an amount that is equal to 25 percent of the amount of 
appropriated funds that was provided for the operation of the commissary 
store of the Defense Commissary Agency on that installation during the 
last full fiscal year of operation of that commissary store.
    ``(f) Definitions.--In this section:

[[Page 110 STAT. 264]]

            ``(1) The term `nonappropriated fund instrumentality' means 
        the Army and Air Force Exchange Service, Navy Exchange Service 
        Command, Marine Corps exchanges, or any other instrumentality of 
        the United States under the jurisdiction of the Armed Forces 
        which is conducted for the comfort, pleasure, contentment, or 
        physical or mental improvement of members of the Armed Forces.
            ``(2) The term `base closure law' has the meaning given such 
        term by section 2667(g) of this title.''.

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

``2490a. Combined exchange and commissary stores.''.

    (b) Conforming Amendment.--Section 375 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2736) is amended by striking out ``, until December 31, 1995,''.

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

    (a) <<NOTE: Contracts.>> Use of Commercial Banking Institution.--(1) 
As soon as practicable after the date of the enactment of this Act, the 
Secretary of Defense shall seek to enter into an agreement with a 
commercial banking institution under which the institution agrees to 
finance and operate the deferred payment program of the Army and Air 
Force Exchange Service and the deferred payment program of the Navy 
Exchange Service Command. The Secretary shall use competitive procedures 
to enter into an agreement under this paragraph.

    (2) In order to facilitate the transition of the operation of the 
programs referred to in paragraph (1) to commercial operation under an 
agreement described in that paragraph, the Secretary may initially limit 
the scope of any such agreement so as to apply to only one of the 
programs.

    (b) Report.--Not later than December 31, 1995, the Secretary shall 
submit to Congress a report on the implementation of this section. The 
report shall also include an analysis of the impact of the deferred 
payment programs referred to in subsection (a)(1), including the impact 
of the default and collection procedures under such programs, on members 
of the Armed Forces and their families.
SEC. 338. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED BY 
                        ARMY AND AIR FORCE EXCHANGE SERVICE ON 
                        ACCOUNT OF TROOP REDUCTIONS IN EUROPE.

    Of funds authorized to be appropriated under section 301(5), not 
less than $70,000,000 shall be available to the Secretary of Defense for 
transfer to the Army and Air Force Exchange Service to offset expenses 
incurred by the Army and Air Force Exchange Service on account of 
reductions in the number of members of the United States Armed Forces 
assigned to permanent duty ashore in Europe.
SEC. 339. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION OF 
                        MILITARY EXCHANGES AND OTHER MORALE, 
                        WELFARE, AND RECREATION ACTIVITIES AND 
                        COMMISSARY STORES.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
regarding the manner in which greater efficiencies can be achieved in 
the operation of--
            (1) military exchanges;

[[Page 110 STAT. 265]]

            (2) other instrumentalities of the United States under the 
        jurisdiction of the Armed Forces which are conducted for the 
        comfort, pleasure, contentment, or physical or mental 
        improvement of members of the Armed Forces; and
            (3) commissary stores.

    (b) Report of Study.--Not later than March 1, 1996, the Secretary of 
Defense shall submit to Congress a report describing the results of the 
study and containing such recommendations as the Secretary considers 
appropriate to implement options identified in the study to achieve the 
greater efficiencies referred to in subsection (a).
SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS' STORES TO 
                        NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Repeal.--Section 371 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 7604 note) is 
amended--
            (1) by striking out subsections (a) and (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (a) and (b), respectively.

    (b) <<NOTE: Reports.>> Inspector General Review.--Not later than 
April 1, 1996, the Inspector General of the Department of Defense shall 
submit to Congress a report that reviews the report on the costs and 
benefits of converting to operation of Navy ships' stores by 
nonappropriated fund instrumentalities that the Navy Audit Agency 
prepared in connection with the postponement of the deadline for the 
conversion provided for in section 374(a) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2736).
SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECREATION 
                        FUNDS.

    Section 2219 of title 10, United States Code, is amended--
            (1) in the first sentence, by striking out ``a military 
        department'' and inserting in lieu thereof ``an armed force'';
            (2) in the second sentence--
                    (A) by striking out ``, department-wide''; and
                    (B) by striking out ``of the military department'' 
                and inserting in lieu thereof ``for that armed force''; 
                and
            (3) by adding at the end the following: ``This section does 
        not apply to the Coast Guard.''.
SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WELFARE, 
                        AND RECREATION FACILITIES BY MEMBERS OF 
                        RESERVE COMPONENTS AND DEPENDENTS.

    (a) In General.--Section 1065 of title 10, United States Code, is 
amended to read as follows:

``Sec. 1065. Morale, welfare, and recreation retail facilities: use by 
                        members of reserve components and dependents

    ``(a) Members of the Selected Reserve.--A member of the Selected 
Reserve in good standing (as determined by the Secretary concerned) 
shall be permitted to use MWR retail facilities on the same basis as 
members on active duty.
    ``(b) Members of Ready Reserve Not in Selected Reserve.--Subject to 
such regulations as the Secretary of Defense may prescribe, a member of 
the Ready Reserve (other than members of

[[Page 110 STAT. 266]]

the Selected Reserve) may be permitted to use MWR retail facilities on 
the same basis as members serving on active duty.
    ``(c) Reserve Retirees Under Age 60.--A member or former member of a 
reserve component under 60 years of age who, but for age, would be 
eligible for retired pay under chapter 1223 of this title shall be 
permitted to use MWR retail facilities on the same basis as members of 
the armed forces entitled to retired pay under any other provision of 
law.
    ``(d) Dependents.--(1) Dependents of a member who is permitted under 
subsection (a) or (b) to use MWR retail facilities shall be permitted to 
use such facilities on the same basis as dependents of members on active 
duty.
    ``(2) Dependents of a member who is permitted under subsection (c) 
to use MWR retail facilities shall be permitted to use such facilities 
on the same basis as dependents of members of the armed forces entitled 
to retired pay under any other provision of law.
    ``(e) MWR Retail Facility Defined.--In this section, the term `MWR 
retail facilities' means 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) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 54 of such title is 
amended to read as follows:

``1065. Morale, welfare, and recreation retail facilities: use by 
           members of reserve components and dependents.''.

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

SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION 
                        SERVICES.

    (a) Requirement for Competitive Procurement.--Except as provided in 
subsection (b), the Secretary of Defense shall, during fiscal year 1996 
and consistent with the requirements of title 44, United States Code, 
competitively procure printing and duplication services from private-
sector sources for the performance of at least 70 percent of the total 
printing and duplication requirements of the Defense Printing Service.
    (b) Exception for Classified Information.--The requirement of 
subsection (a) shall not apply to the procurement of services for 
printing and duplicating classified documents and information.
SEC. 352. <<NOTE: 10 USC 2458 note.>>  DIRECT VENDOR DELIVERY 
                        SYSTEM FOR CONSUMABLE INVENTORY ITEMS OF 
                        DEPARTMENT OF DEFENSE.

    (a) Implementation of Direct Vendor Delivery System.--Not later than 
September 30, 1997, the Secretary of Defense shall, to the maximum 
extent practicable, implement a system under which consumable inventory 
items referred to in subsection (b) are delivered to military 
installations throughout the United States directly by the vendors of 
those items. The purpose for implementing the system is to reduce the 
expense and necessity of maintaining extensive warehouses for those 
items within the Department of Defense.
    (b) Covered Items.--The items referred to in subsection (a) are the 
following:

[[Page 110 STAT. 267]]

            (1) Food and clothing.
            (2) Medical and pharmaceutical supplies.
            (3) Automotive, electrical, fuel, and construction supplies.
            (4) Other consumable inventory items the Secretary considers 
        appropriate.
SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE 
                        DEPARTMENT OF DEFENSE.

    (a) <<NOTE: 10 USC 2461 note.>> Plan for Private Operation of 
Certain Functions.--(1) Not later than October 1, 1996, the Secretary of 
Defense shall submit to Congress a plan for the performance by private-
sector sources of payroll functions for civilian employees of the 
Department of Defense other than employees paid from nonappropriated 
funds.

    (2)(A) The Secretary shall implement the plan referred to in 
paragraph (1) if the Secretary determines that the cost of performance 
by private-sector sources of the functions referred to in that paragraph 
does not exceed the cost of performance of those functions by employees 
of the Federal Government.
    (B) In computing the total cost of performance of such functions by 
employees of the Federal Government, the Secretary shall include the 
following:
            (i) Managerial and administrative costs.
            (ii) Personnel costs, including the cost of providing 
        retirement benefits for such personnel.
            (iii) Costs associated with the provision of facilities and 
        other support by Federal agencies.

    (C) The Defense Contract Audit Agency shall verify the costs 
computed for the Secretary under this paragraph by others.
    (3) <<NOTE: Reports.>> At the same time the Secretary submits the 
plan required by paragraph (1), the Secretary shall submit to Congress a 
report on other accounting and finance functions of the Department that 
are appropriate for performance by private-sector sources.

    (b) <<NOTE: 10 USC 2461 note.>> Pilot Program for Private Operation 
of NAFI Functions.--(1) The Secretary shall carry out a pilot program to 
test the performance by private-sector sources of payroll and other 
accounting and finance functions of nonappropriated fund 
instrumentalities and to evaluate the extent to which cost savings and 
efficiencies would result from the performance of such functions by 
those sources.

    (2) The payroll and other accounting and finance functions 
designated by the Secretary for performance by private-sector sources 
under the pilot program shall include at least one major payroll, 
accounting, or finance function.

    (3) To carry out the pilot program, the Secretary shall enter into 
discussions with private-sector sources for the purpose of developing a 
request for proposals to be issued for performance by those sources of 
functions designated by the Secretary under paragraph (2). The 
discussions shall be conducted on a schedule that accommodates issuance 
of a request for proposals within 60 days after the date of the 
enactment of this Act.
    (4) A goal of the pilot program is to reduce by at least 25 percent 
the total costs incurred by the Department annually for the performance 
of a function referred to in paragraph (2) through the performance of 
that function by a private-sector source.

    (5) Before conducting the pilot program, the Secretary shall develop 
a plan for the program that addresses the following:
            (A) The purposes of the program.

[[Page 110 STAT. 268]]

            (B) The methodology, duration, and anticipated costs of the 
        program, including the cost of an arrangement pursuant to which 
        a private-sector source would receive an agreed-upon payment 
        plus an additional negotiated amount not to exceed 50 percent of 
        the dollar savings achieved in excess of the goal specified in 
        paragraph (4).
            (C) A specific citation to any provisions of law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (D) A mechanism to evaluate the program.
            (E) A provision for all payroll, accounting, and finance 
        functions of nonappropriated fund instrumentalities of the 
        Department of Defense to be performed by private-sector
sources, if determined advisable on the basis of a final assessment of 
the results of the program.

    (6) The Secretary shall act through the Under Secretary of Defense 
(Comptroller) in the performance of the Secretary's responsibilities 
under this subsection.
    (c) Limitation on Opening of New Operating Locations for Defense 
Finance and Accounting Service.--(1) Except as provided in paragraph 
(2), the Secretary may not establish a new operating location for the 
Defense Finance and Accounting Service during fiscal year 1996.
    (2) The Secretary may establish a new operating location for the 
Defense Finance and Accounting Service if--
            (A) for a new operating location that the Secretary planned 
        before the date of the enactment of this Act to establish on or 
        after that date, the Secretary reconsiders the need for 
        establishing that new operating location; and
            (B) for each new operating location, including a new 
        operating location referred to in subparagraph (A)--
                    (i) the Secretary submits to Congress, as part of 
                the report required by subsection (a)(4), an analysis of 
                the need for establishing the new operating location; 
                and
                    (ii) a period of 30 days elapses after the Congress 
                receives the report.

    (3) In this subsection, the term ``new operating location'' means an 
operating location that is not in operation on the date of the enactment 
of this Act, except that such term does not include an operating 
location for which, as of such date--
            (A) the Secretary has established a date for the 
        commencement of operations; and
            (B) funds have been expended for the purpose of its 
        establishment.
SEC. 354. <<NOTE: 10 USC 2461 note.>>  DEMONSTRATION PROGRAM TO 
                        IDENTIFY OVERPAYMENTS MADE TO VENDORS.

    (a) In General.--The Secretary of Defense shall conduct a 
demonstration program to evaluate the feasibility of using private 
contractors to audit accounting and procurement records of the 
Department of Defense in order to identify overpayments made to vendors 
by the Department. The demonstration program shall be conducted for the 
Defense Logistics Agency and include the Defense Personnel Support 
Center.
    (b) <<NOTE: Contracts.>> Program Requirements.--(1) Under the 
demonstration program, the Secretary shall, by contract, provide for one 
or more persons to audit the accounting and procurement records of the

[[Page 110 STAT. 269]]

Defense Logistics Agency that relate to (at least) fiscal years 1993, 
1994, and 1995. The Secretary may enter into more than one contract 
under the program.

    (2) A contract under the demonstration program shall require the 
contractor to use data processing techniques that are generally used in 
audits of private-sector records similar to the records audited under 
the contract.

    (c) Audit Requirements.--In conducting an audit under the 
demonstration program, a contractor shall compare Department of Defense 
purchase agreements (and related documents) with invoices submitted by 
vendors under the purchase agreements. A purpose of the comparison is to 
identify, in the case of each audited purchase agreement, the following:
            (1) Any payments to the vendor for costs that are not 
        allowable under the terms of the purchase agreement or by law.
            (2) Any amounts not deducted from the total amount paid to 
        the vendor under the purchase agreement that should have been 
        deducted from that amount on account of goods and services 
        provided to the vendor by the Department.
            (3) Duplicate payments.
            (4) Unauthorized charges.
            (5) Other discrepancies between the amount paid to the 
        vendor and the amount actually due the vendor under the purchase 
        agreement.

    (d) Bonus Payment.--To the extent provided for in a contract under 
the demonstration program, the Secretary may pay the contractor a bonus 
in addition to any other amount paid for performance of the contract. 
The amount of such bonus may not exceed the amount that is equal to 25 
percent of all amounts recovered by the United States on the basis of 
information obtained as a result of the audit performed under the 
contract. Any such bonus shall be paid out of amounts made available 
pursuant to subsection (e).
    (e) Availability of Funds.--Of the amount authorized to be 
appropriated pursuant to section 301(5), not more than $5,000,000 shall 
be available for the demonstration program.
SEC. 355. <<NOTE: 20 USC 921 note.>>  PILOT PROGRAM ON PRIVATE 
                        OPERATION OF DEFENSE DEPENDENTS' SCHOOLS.

    (a) Pilot Program.--The Secretary of Defense may conduct a pilot 
program to evaluate the feasibility of using private contractors to 
operate schools of the defense dependents' education system established 
under section 1402(a) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921(a)).
    (b) Selection of School for Program.--If the Secretary conducts the 
pilot program, the Secretary shall select one school of the defense 
dependents' education system for participation in the program and 
provide for the operation of the school by a private contractor for not 
less than one complete school year.
    (c) Report.--Not later than 30 days after the end of the first 
school year in which the pilot program is conducted, the Secretary shall 
submit to Congress a report on the results of the program. The report 
shall include the recommendation of the Secretary with respect to the 
extent to which other schools of the defense dependents' education 
system should be operated by private contractors.

[[Page 110 STAT. 270]]

SEC. 356. <<NOTE: 10 USC 2461 note.>>  PROGRAM FOR IMPROVED TRAVEL 
                        PROCESS FOR THE DEPARTMENT OF DEFENSE.

    (a) In General.--(1) The Secretary of Defense shall conduct a 
program to evaluate options to improve the Department of Defense travel 
process. To carry out the program, the Secretary shall compare the 
results of the tests conducted under subsection (b) to determine which 
travel process tested under such subsection is the better option to 
effectively manage travel of Department personnel.

    (2) The program shall be conducted at not less than three and not 
more than six military installations, except that an installation may be 
the subject of only one test conducted under the program.
    (3) The Secretary shall act through the Under Secretary of Defense 
(Comptroller) in the performance of the Secretary's responsibilities 
under this section.
    (b) Conduct of Tests.--(1) The Secretary shall conduct a test at an 
installation referred to in subsection (a)(2) under which the 
Secretary--
            (A) implements the changes proposed to be made with respect 
        to the Department of Defense travel process by the task force on 
        travel management that was established by the Secretary in July 
        1994;
            (B) manages and uniformly applies that travel process 
        (including the implemented changes) throughout the Department; 
        and
            (C) provides opportunities for private-sector sources to 
        provide travel reservation services and credit card services to 
        facilitate that travel process.

    (2) The Secretary shall conduct a test at an installation referred 
to in subsection (a)(2) under which the Secretary--
            (A) enters into one or more contracts with a private-sector 
        source pursuant to which the private-sector source manages the 
        Department of Defense travel process (except for functions 
        referred to in subparagraph (B)), provides for responsive, 
        reasonably priced services as part of the travel process, and 
        uniformly applies the travel process throughout the Department; 
        and
            (B) provides for the performance by employees of the 
        Department of only those travel functions, such as travel 
        authorization, that the Secretary considers to be necessary to 
        be performed by such employees.

    (3) Each test required by this subsection shall begin not later than 
60 days after the date of the enactment of this Act and end two years 
after the date on which it began. Each such test shall also be conducted 
in accordance with the guidelines for travel management issued for the 
Department by the Under Secretary of Defense (Comptroller).
    (c) Evaluation Criteria.--The Secretary shall establish criteria to 
evaluate the travel processes tested under subsection (b). The criteria 
shall, at a minimum, include the extent to which a travel process 
provides for the following:
            (1) The coordination, at the time of a travel reservation, 
        of travel policy and cost estimates with the mission which 
        necessitates the travel.

[[Page 110 STAT. 271]]

            (2) The use of fully integrated travel solutions envisioned 
        by the travel reengineering report of the Department of Defense 
        dated January 1995.
            (3) The coordination of credit card data and travel 
        reservation data with cost estimate data.
            (4) The elimination of the need for multiple travel 
        approvals through the coordination of such data with proposed 
        travel plans.
            (5) A responsive and flexible management information system 
        that enables the Under Secretary of Defense (Comptroller) to 
        monitor travel expenses throughout the year, accurately plan 
        travel budgets for future years, and assess, in the case of 
        travel of an employee on temporary duty, the relationship 
        between the cost of the travel and the value of the travel to 
        the accomplishment of the mission which necessitates the travel.

    (d) Plan for Program.--Before conducting the program, the Secretary 
shall develop a plan for the program that addresses the following:
            (1) The purposes of the program, including the achievement 
        of an objective of reducing by at least 50 percent the total 
        cost incurred by the Department annually to manage the 
        Department of Defense travel process.
            (2) The methodology and anticipated cost of the program, 
        including the cost of an arrangement pursuant to which a 
        private-sector source would receive an agreed-upon payment plus 
        an additional negotiated amount that does not exceed 50 percent 
        of the total amount saved in excess of the objective specified 
        in paragraph (1).
            (3) A specific citation to any provision or law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (4) The evaluation criteria established pursuant to 
        subsection (c).
            (5) A provision for implementing throughout the Department 
        the travel process determined to be the better option to 
        effectively manage travel of Department personnel on the basis 
        of a final assessment of the results of the program.

    (e) Report.--After the first full year of the conduct of the tests 
required by subsection (b), the Secretary shall submit to the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the implementation of the 
program. The report shall include an analysis of the evaluation criteria 
established pursuant to subsection (c).
SEC. 357. <<NOTE: 10 USC 2461 note.>>  INCREASED RELIANCE ON 
                        PRIVATE-SECTOR SOURCES FOR COMMERCIAL 
                        PRODUCTS AND SERVICES.

    (a) In General.--The Secretary of Defense shall endeavor to carry 
out through a private-sector source any activity to provide a commercial 
product or service for the Department of Defense if--
            (1) the product or service can be provided adequately 
        through such a source; and
            (2) an adequate competitive environment exists to provide 
        for economical performance of the activity by such a source.

[[Page 110 STAT. 272]]

    (b) Applicability.--(1) Subsection (a) shall not apply to any 
commercial product or service with respect to which the Secretary 
determines that production, manufacture, or provision of that product or 
service by the Government is necessary for reasons of national security.

    (2) A determination under paragraph (1) shall be made in accordance 
with regulations prescribed under subsection (c).
    (c) Regulations.--The Secretary shall prescribe regulations to carry 
out this section. Such regulations shall be prescribed in consultation 
with the Director of the Office of Management and Budget.
    (d) Report.--(1) The Secretary shall identify activities of the 
Department (other than activities specified by the Secretary pursuant to 
subsection (b)) that are carried out by employees of the Department to 
provide commercial-type products or services for the Department.
    (2) Not later than April 15, 1996, the Secretary shall transmit to 
the congressional defense committees a report on opportunities for 
increased use of private-sector sources to provide commercial products 
and services for the Department.
    (3) The report required by paragraph (2) shall include the 
following:
            (A) A list of activities identified under paragraph (1) 
        indicating, for each activity, whether the Secretary proposes to 
        convert the performance of that activity to performance by 
        private-sector sources and, if not, the reasons why.
            (B) An assessment of the advantages and disadvantages of 
        using private-sector sources, rather than employees of the 
        Department, to provide commercial products and services for the 
        Department that are not essential to the warfighting mission of 
        the Armed Forces.
            (C) A specification of all legislative and regulatory 
        impediments to converting the performance of activities 
        identified under paragraph (1) to performance by private-sector 
        sources.
            (D) The views of the Secretary on the desirability of 
        terminating the applicability of OMB Circular A-76 to the 
        Department.

    (4) The Secretary shall carry out paragraph (1) in consultation with 
the Director of the Office of Management and Budget and the Comptroller 
General of the United States. In carrying out that paragraph, the 
Secretary shall consult with, and seek the views of, representatives of 
the private sector, including organizations representing small 
businesses.

         Subtitle F--Miscellaneous Reviews, Studies, and Reports

SEC. 361. QUARTERLY READINESS REPORTS.

    (a) In General.--(1) Chapter 22 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 452. Quarterly readiness reports

    ``(a) Requirement.--Not later than 30 days after the end of each 
calendar-year quarter, 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

[[Page 110 STAT. 273]]

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

    ``(b) Matters To Be Included.--Each such report shall--
            ``(1) specifically describe identified readiness problems or 
        deficiencies and planned remedial actions; and
            ``(2) include the key indicators and other relevant data 
        related to the identified problem or deficiency.

    ``(c) Classification of Reports.--Reports under this section shall 
be submitted in unclassified form and may, as the Secretary determines 
necessary, also be submitted in classified form.''.

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

``452. Quarterly readiness reports.''.

  (b) <<NOTE: 10 USC 452 note.>> Effective Date.--Section 452 of title 
10, United States Code, as added by subsection (a), shall take effect 
with the calendar-year quarter during which this Act is enacted.
SEC. 362. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS TO 
                        CONGRESS ON TRANSFERS FROM HIGH-PRIORITY 
                        READINESS APPROPRIATIONS.

    Section 361 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2732) is amended to read as 
follows:
``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM HIGH-
                          PRIORITY READINESS APPROPRIATIONS.

    ``(a) Annual Reports.--During 1996 and 1997, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
transfers during the preceding fiscal year from funds available for each 
budget activity specified in subsection (d) (hereinafter in this section 
referred to as `covered budget activities'). The report each year shall 
be submitted not later than the date in that year on which the President 
submits the budget for the next fiscal year to Congress pursuant to 
section 1105 of title 31, United States Code.
    ``(b) Midyear Reports.--On May 1 of each year specified in 
subsection (a), the Secretary of Defense shall submit to the 
congressional defense committees a report providing the same 
information, with respect to the first six months of the fiscal year in 
which the report is submitted, that is provided in reports under 
subsection (a) with respect to the preceding fiscal year.

    ``(c) Matters To Be Included.--In each report under this section, 
the Secretary shall include for each covered budget activity the 
following:
            ``(1) A statement, for the period covered by the report, 
        of--

[[Page 110 STAT. 274]]

                    ``(A) the total amount of transfers into funds 
                available for that activity;
                    ``(B) the total amount of transfers from funds 
                available for that activity; and
                    ``(C) the net amount of transfers into, or out of, 
                funds available for that activity.
            ``(2) A detailed explanation of the transfers into, and out 
        of, funds available for that activity during the period covered 
        by the report.

    ``(d) Covered Budget Activities.--The budget activities to which 
this section applies are the following:
            ``(1) The budget activity groups (known as `subactivities') 
        within the Operating Forces budget activity of the annual 
        Operation and Maintenance, Army, appropriation that are 
        designated as follows:
                    ``(A) Combat Units.
                    ``(B) Tactical Support.
                    ``(C) Force-Related Training/Special Activities.
                    ``(D) Depot Maintenance.
                    ``(E) JCS Exercises.
            ``(2) The budget activity groups (known as `subactivities') 
        within the Operating Forces budget activity of the annual 
        Operation and Maintenance, Navy, appropriation that are 
        designated as follows:
                    ``(A) Mission and Other Flight Operations.
                    ``(B) Mission and Other Ship Operations.
                    ``(C) Fleet Air Training.
                    ``(D) Ship Operational Support and Training.
                    ``(E) Aircraft Depot Maintenance.
                    ``(F) Ship Depot Maintenance.
            ``(3) The budget activity groups (known as `subactivities'), 
        or other activity, within the Operating Forces budget activity 
        of the annual Operation and Maintenance, Air Force, 
        appropriation that are designated or otherwise identified as 
        follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Global and Early Warning.
                    ``(D) Air Operations Training.
                    ``(E) Depot Maintenance.
                    ``(F) JCS Exercises.''.
SEC. 363. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH 
                        CONTRACT MANAGEMENT OVERSIGHT.

    (a) Report Required.--Not later than April 1, 1996, the Comptroller 
General of the United States shall submit to Congress a report 
identifying methods to reduce the cost to the Department of Defense of 
management oversight of contracts in connection with major defense 
acquisition programs.
    (b) Major Defense Acquisition Programs Defined.--For purposes of 
this section, the term ``major defense acquisition program'' has the 
meaning given that term in section 2430(a) of title 10, United States 
Code.
SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL POINTS AND 
                        MATERIEL MANAGEMENT STANDARD SYSTEM.

    (a) Review of Consolidation of Inventory Control Points.--(1) The 
Secretary of Defense shall conduct a review of the management by the 
Defense Logistics Agency of all inventory

[[Page 110 STAT. 275]]

control points of the Department of Defense. In conducting the review, 
the Secretary shall examine the management and acquisition practices of 
the Defense Logistics Agency for inventory of repairable spare parts.
    (2) Not later than March 31, 1996, the Secretary shall submit to the 
Comptroller General of the United States and the congressional defense 
committees a report on the results the review conducted under paragraph 
(1).
    (b) Review of Materiel Management Standard System.--(1) The 
Comptroller General of the United States shall conduct a review of the 
automated data processing system of the Department of Defense known as 
the Materiel Management Standard System.
    (2) Not later than May 1, 1996, the Comptroller General shall submit 
to the congressional defense committees a report on the results of the 
review conducted under paragraph (1).
SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS 
                        PERFORMED BY MILITARY AIRCRAFT.

    (a) Report Required.--Not later than May 1, 1996, the Secretary of 
Defense shall submit to Congress a report on the feasibility of 
providing for the performance by private-sector sources of functions 
necessary to be performed to fulfill the requirements of the Department 
of Defense for air transportation of personnel and cargo.
    (b) Content of Report.--The report shall include the following:
            (1) A cost-benefit analysis with respect to the performance 
        by private-sector sources of functions described in subsection 
        (a), including an explanation of the assumptions used in the 
        cost-benefit analysis.
            (2) An assessment of the issues raised by providing for such 
        performance by means of a contract entered into with a private-
        sector source.
            (3) An assessment of the issues raised by providing for such 
        performance by means of converting functions described in 
        subsection (a) to private ownership and operation, in whole or 
        in part.
            (4) A discussion of the requirements for the performance of 
        such functions in order to fulfill the requirements referred to 
        in subsection (a) during wartime.
            (5) The effect on military personnel and facilities of using 
        private-sector sources to fulfill the requirements referred to 
        in such subsection.
            (6) The performance by private-sector sources of any other 
        military aircraft functions (such as non-combat inflight fueling 
        of aircraft) the Secretary considers appropriate.
SEC. 366. <<NOTE: 10 USC 113 note.>>  STRATEGY AND REPORT ON 
                        AUTOMATED INFORMATION SYSTEMS OF 
                        DEPARTMENT OF DEFENSE.

    (a) Development of Strategy.--The Secretary of Defense shall develop 
a strategy for the development or modernization of automated information 
systems for the Department of Defense.
    (b) Matters to Consider.--In developing the strategy required under 
subsection (a), the Secretary shall consider the following:
            (1) The use of performance measures and management controls.
            (2) Findings of the Functional Management Review conducted 
        by the Secretary.

[[Page 110 STAT. 276]]

            (3) Program management actions planned by the Secretary.
            (4) Actions and milestones necessary for completion of 
        functional and economic analyses for--
                    (A) the Automated System for Transportation data;
                    (B) continuous acquisition and life cycle support;
                    (C) electronic data interchange;
                    (D) flexible computer integrated manufacturing;
                    (E) the Navy Tactical Command Support System; and
                    (F) the Defense Information System Network.
            (5) Progress made by the Secretary in resolving problems 
        with respect to the Defense Information System Network and the 
        Joint Computer-Aided Acquisition and Logistics Support System.
            (6) Tasks identified in the review conducted by the 
        Secretary of the Standard Installation/Division Personnel 
        System-3.
            (7) Such other matters as the Secretary considers 
        appropriate.

    (c) Report on Strategy.--(1) Not later than April 15, 1996, the 
Secretary shall submit to Congress a report on the development of the 
strategy required under subsection (a).
    (2) In the case of the Air Force Wargaming Center, the Air Force 
Command Exercise System, the Cheyenne Mountain Upgrade, the 
Transportation Coordinator Automated Command and Control Information 
Systems, and the Wing Command and Control Systems, the report required 
by paragraph (1) shall provide functional economic analyses and address 
waivers exercised for compelling military importance under section 
381(d) of the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 108 Stat. 2739).
    (3) The report required by paragraph (1) shall also include the 
following:
            (A) <<NOTE: Certification.>> A certification by the 
        Secretary of the termination of the Personnel Electronic Record 
        Management System or a justification for the continued need for 
        such system.
            (B) Findings of the Functional Management Review conducted 
        by the Secretary and program management actions planned by the 
        Secretary for--
                    (i) the Base Level System Modernization and the 
                Sustaining Base Information System; and
                    (ii) the Standard Installation/Division Personnel 
                System-3.
            (C) An assessment of the implementation of migration systems 
        and applications, including--
                    (i) identification of the systems and applications 
                by functional or business area, specifying target dates 
                for operation of the systems and applications;
                    (ii) identification of the legacy systems and 
                applications that will be terminated;
                    (iii) the cost of and schedules for implementing the 
                migration systems and applications; and
                    (iv) termination schedules.
            (D) A certification by the Secretary that each information 
        system that is subject to review by the Major Automated 
        Information System Review Committee of the Department is cost-
        effective and supports the corporate information manage

[[Page 110 STAT. 277]]

        ment goals of the Department, including the results of the 
        review conducted for each such system by the Committee.

                        Subtitle G--Other Matters

SEC. 371. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

    (a) Management of Working-Capital Funds.--(1) Chapter 131 of title 
10, United States Code, is amended by inserting after section 2215 the 
following new section:

``Sec. 2216. Defense Business Operations Fund

    ``(a) Management of Working-Capital Funds and Certain Activities.--
The Secretary of Defense may manage the performance of the working-
capital funds and industrial, commercial, and support type activities 
described in subsection (b) through the fund known as the Defense 
Business Operations Fund, which is established on the books of the 
Treasury. Except for the funds and activities specified in subsection 
(b), no other functions, activities, funds, or accounts of the 
Department of Defense may be managed or converted to management through 
the Fund.
    ``(b) Funds and Activities Included.--The funds and activities 
referred to in subsection (a) are the following:
            ``(1) Working-capital funds established under section 2208 
        of this title and in existence on December 5, 1991.
            ``(2) Those activities that, on December 5, 1991, were 
        funded through the use of a working-capital fund established 
        under that section.
            ``(3) The Defense Finance and Accounting Service.
            ``(4) The Defense Commissary Agency.
            ``(5) The Defense Reutilization and Marketing Service.
            ``(6) The Joint Logistics Systems Center.

    ``(c) Separate Accounting, Reporting, and Auditing of Funds and 
Activities.--(1) The Secretary of Defense shall provide in accordance 
with this subsection for separate accounting, reporting, and auditing of 
funds and activities managed through the Fund.

    ``(2) The Secretary shall maintain the separate identity of each 
fund and activity managed through the Fund that (before the 
establishment of the Fund) was managed as a separate Fund or activity.
    ``(3) <<NOTE: Records.>> The Secretary shall maintain separate 
records for each function for which payment is made through the Fund and 
which (before the establishment of the Fund) was paid directly through 
appropriations, including the separate identity of the appropriation 
account used to pay for the performance of the function.

    ``(d) Charges for Goods and Services Provided Through the Fund.--(1) 
Charges for goods and services provided through the Fund shall include 
the following:
            ``(A) Amounts necessary to recover the full costs of the 
        goods and services, whenever practicable, and the costs of the 
        development, implementation, operation, and maintenance of 
        systems supporting the wholesale supply and maintenance 
        activities of the Department of Defense.
            ``(B) Amounts for depreciation of capital assets, set in 
        accordance with generally accepted accounting principles.

[[Page 110 STAT. 278]]

            ``(C) Amounts necessary to recover the full cost of the 
        operation of the Defense Finance Accounting Service.

    ``(2) Charges for goods and services provided through the 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.

    ``(3)(A) The Secretary of Defense may submit to a customer a bill 
for the provision of goods and services through the Fund in advance of 
the provision of those goods and services.
    ``(B) <<NOTE: Reports.>> The Secretary shall submit to Congress a 
report on advance billings made pursuant to subparagraph (A)--
            ``(i) when the aggregate amount of all such billings after 
        the date of the enactment of the National Defense Authorization 
        Act for Fiscal Year 1996 reaches $100,000,000; and
            ``(ii) whenever the aggregate amount of all such billings 
        after the date of a preceding report under this subparagraph 
        reaches $100,000,000.

    ``(C) Each report under subparagraph (B) shall include, for each 
such advance billing, the following:
            ``(i) An explanation of the reason for the advance billing.
            ``(ii) An analysis of the impact of the advance billing on 
        readiness.
            ``(iii) An analysis of the impact of the advance billing on 
        the customer so billed.

    ``(e) Capital Asset Subaccount.--(1) Amounts charged for 
depreciation of capital assets pursuant to subsection (d)(1)(B) shall be 
credited to a separate capital asset subaccount established within the 
Fund.

    ``(2) The Secretary of Defense may award contracts for capital 
assets of the Fund in advance of the availability of funds in the 
subaccount.
    ``(f) Procedures For Accumulation of Funds.--The Secretary of 
Defense shall establish billing procedures to ensure that the balance in 
the Fund does not exceed the amount necessary to provide for the working 
capital requirements of the Fund, as determined by the Secretary.
    ``(g) Purchase From Other Sources.--The Secretary of Defense or the 
Secretary of a military department may purchase goods and services that 
are available for purchase from the Fund from a source other than the 
Fund if the Secretary determines that such source offers a more 
competitive rate for the goods and services than the Fund offers.
    ``(h) Annual Reports and Budget.--The Secretary of Defense 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 state

[[Page 110 STAT. 279]]

        ment 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.

    ``(i) Definitions.--In this section:
            ``(1) The term `capital assets' means the following capital 
        assets that have a development or acquisition cost of not less 
        than $50,000:
                    ``(A) Minor construction projects financed by the 
                Fund pursuant to section 2805(c)(1) of this title.
                    ``(B) Automatic data processing equipment, software.
                    ``(C) Equipment other than equipment described in 
                subparagraph (B).
                    ``(D) Other capital improvements.
            ``(2) The term `Fund' means the Defense Business Operations 
        Fund.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2215 the 
following new item:

``2216. Defense Business Operations Fund.''.

    (b) Conforming Repeals.--The following provisions of law are hereby 
repealed:
            (1) Subsections (b), (c), (d), and (e) of section 311 of the 
        National Defense Authorization Act for Fiscal Year 1995 (Public 
        Law 103-337; 10 U.S.C. 2208 note).
            (2) Subsections (a) and (b) of section 333 of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 10 U.S.C. 2208 note).
            (3) Section 342 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208 note).
            (4) Section 316 of the National Defense Authorization Act 
        for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
        2208 note).

[[Page 110 STAT. 280]]

            (5) Section 8121 of the Department of Defense Appropriations 
        Act, 1992 (Public Law 102-172; 10 U.S.C. 2208 note).
SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE 
                        EXCHANGED TO BENEFIT THE HISTORICAL 
                        COLLECTION OF THE ARMED FORCES.

    Section 2572(b)(1) of title 10, United States Code, is amended by 
striking out ``not needed by the armed forces'' and all that follows 
through the end of the paragraph and inserting in lieu thereof the 
following: ``not needed by the armed forces for any of the following 
items or services if such items or services directly benefit the 
historical collection of the armed forces:
            ``(A) Similar items held by any individual, organization, 
        institution, agency, or nation.
            ``(B) Conservation supplies, equipment, facilities, or 
        systems.
            ``(C) Search, salvage, or transportation services.
            ``(D) Restoration, conservation, or preservation services.
            ``(E) Educational programs.''.

SEC. 373. FINANCIAL MANAGEMENT TRAINING.

    (a) Limitation.--The Secretary of Defense may enter into a capital 
lease for the establishment of a Department of Defense financial 
management training center no earlier than the date that is 30 days 
after the date on which the Secretary of Defense submits to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives, in accordance with subsection 
(b), a certification of the need for such a center and a report on 
financial management training for Department of Defense personnel.
    (b) Certification and Report.--(1) The certification and report 
referred to in subsection (a) are the following:
            (A) Certification by the Secretary of the need for such a 
        center.
            (B) A report, submitted with the certification, on financial 
        management training for Department of Defense personnel.

    (2) Any report under paragraph (1) shall contain the following:
            (A) The Secretary's analysis of the requirements for 
        providing financial management training for employees of the 
        Department of Defense.
            (B) The alternatives considered by the Secretary for meeting 
        those requirements.
            (C) A detailed plan for meeting those requirements.
            (D) A financial analysis of the estimated short-term and 
        long-term costs of carrying out the plan.

    (3) If, upon completing the analysis referred to in paragraph (2)(A) 
and after considering alternatives as described in paragraph (2)(B), the 
Secretary determines to meet the requirements for providing financial 
management training for employees of the Department of Defense through 
establishment of a financial management training center, the Secretary--
            (A) shall make the determination of the location of the 
        center using a merit-based selection process; and
            (B) shall include in the report under paragraph (1) a 
        description of that merit-based selection process.

[[Page 110 STAT. 281]]

SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE SALE OF 
                        CERTAIN LOST, ABANDONED, OR UNCLAIMED 
                        PROPERTY.

    (a) Permanent Authority.--Section 2575 of title 10 is amended--
            (1) by striking out subsection (b) and inserting in lieu 
        thereof the following:

    ``(b)(1) In the case of lost, abandoned, or unclaimed personal 
property found on a military installation, the proceeds from the sale of 
the property under this section shall be credited to the operation and 
maintenance account of that installation and used--
            ``(A) to reimburse the installation for any costs incurred 
        by the installation to collect, transport, store, protect, or 
        sell the property; and
            ``(B) to the extent that the amount of the proceeds exceeds 
        the amount necessary for reimbursing all such costs, to support 
        morale, welfare, and recreation activities under the 
        jurisdiction of the armed forces that are conducted for the 
        comfort, pleasure, contentment, or physical or mental 
        improvement of members of the armed forces at such installation.

    ``(2) The net proceeds from the sale of other property under this 
section shall be covered into the Treasury as miscellaneous receipts.''; 
and
            (2) by adding at the end the following:

    ``(d)(1) The owner (or heirs, next of kin, or legal representative 
of the owner) of personal property the proceeds of which are credited to 
a military installation under subsection (b)(1) may file a claim with 
the Secretary of Defense for the amount equal to the proceeds (less 
costs referred to in subparagraph (A) of such subsection). Amounts to 
pay the claim shall be drawn from the morale, welfare, and recreation 
account for the installation that received the proceeds.
    ``(2) The owner (or heirs, next of kin, or legal representative of 
the owner) may file a claim with the Comptroller General of the United 
States for proceeds covered into the Treasury under subsection (b)(2).
    ``(3) Unless a claim is filed under this subsection within 5 years 
after the date of the disposal of the property to which the claim 
relates, the claim may not be considered by a court, the Secretary of 
Defense (in the case of a claim filed under paragraph (1)), or the 
Comptroller General of the United States (in the case of a claim filed 
under paragraph (2)).''.
    (b) Repeal of Authority for Demonstration Program.--Section 343 of 
the National Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 105 Stat. 1343) is repealed.
SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND OTHER 
                        SUPPLIES OF THE NAVY AND MARINE CORPS.

    (a) In General.--(1) Chapter 651 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 7606. Subsistence and other supplies: members of armed 
                    forces; veterans; executive or military 
                    departments and employees; prices

    ``(a)(1) The Secretary of the Navy shall procure and sell, for cash 
or credit--

[[Page 110 STAT. 282]]

            ``(A) articles designated by the Secretary to members of the 
        Navy and Marine Corps; and
            ``(B) items of individual clothing and equipment to members 
        of the Navy and Marine Corps, under such restrictions as the 
        Secretary may prescribe.

    ``(2) An account of sales on credit shall be kept and the amount due 
reported to the Secretary. Except for articles and items acquired 
through the use of working capital funds under section 2208 of this 
title, sales of articles shall be at cost, and sales of individual 
clothing and equipment shall be at average current prices, including 
overhead, as determined by the Secretary.
    ``(b) The Secretary shall sell subsistence supplies to members of 
other armed forces at the prices at which like property is sold to 
members of the Navy and Marine Corps.
    ``(c) The Secretary may sell serviceable supplies, other than 
subsistence supplies, to members of other armed forces for the buyers' 
use in the service. The prices at which the supplies are sold shall be 
the same prices at which like property is sold to members of the Navy 
and Marine Corps.
    ``(d) A person who has been discharged honorably or under honorable 
conditions from the Army, Navy, Air Force or Marine Corps and who is 
receiving care and medical treatment from the Public Health Service or 
the Department of Veterans Affairs may buy subsistence supplies and 
other supplies, except articles of uniform, at the prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(e) Under such conditions as the Secretary may prescribe, exterior 
articles of uniform may be sold to a person who has been discharged 
honorably or under honorable conditions from the Navy or Marine Corps, 
at the prices at which like articles are sold to members of the Navy or 
Marine Corps. This subsection does not modify sections 772 or 773 of 
this title.
    ``(f) <<NOTE: Regulations.>> Under regulations prescribed by the 
Secretary, payment for subsistence supplies shall be made in cash or by 
commercial credit.

    ``(g)(1) The Secretary may provide for the procurement and sale of 
stores designated by the Secretary to such civilian officers and 
employees of the United States, and such other persons, as the Secretary 
considers proper--
            ``(A) at military installations outside the United States; 
        and
            ``(B) subject to paragraph (2), at military installations 
        inside the United States where the Secretary determines that it 
        is impracticable for those civilian officers, employees, and 
        persons to obtain such stores from commercial enterprises 
        without impairing the efficient operation of military 
        activities.

    ``(2) Sales to civilian officers and employees inside the United 
States may be made under paragraph (1) only to civilian officers and 
employees residing within military installations.
    ``(h) Appropriations for subsistence of the Navy or Marine Corps may 
be applied to the purchase of subsistence supplies for sale to members 
of the Navy and Marine Corps on active duty for the use of such members 
and their families.''.

[[Page 110 STAT. 283]]

    (2) The table of sections at the beginning of chapter 651 of such 
title is amended by adding at the end the following:

``7606. Subsistence and other supplies: members of armed forces; 
           veterans; executive or military departments and employees; 
           prices.''.

    (b) Conforming Amendments for Other Armed Forces.--(1) Section 4621 
of such title is amended--
            (A) by striking out ``The branch, office, or officer 
        designated by the Secretary of the Army'' in subsection (a) and 
        inserting in lieu thereof ``The Secretary of the Army'';
            (B) by striking out ``The branch, office, or officer 
        designated by the Secretary'' both places it appears in 
        subsections (b) and (c) and inserting in lieu thereof ``The 
        Secretary''; and
            (C) by inserting before the period at the end of subsection 
        (f) the following: ``or by commercial credit''.

    (2) Section 9621 of such title is amended--
            (A) by striking out ``The Air Force shall'' in subsection 
        (b) and inserting in lieu thereof ``The Secretary shall''; and
            (B) by inserting before the period at the end of subsection 
        (f) the following: ``or by commercial credit''.
SEC. 376. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CERTAIN 
                        ACTIVITIES HELD ON MILITARY INSTALLATIONS.

    Section 2544 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) In the case of a Boy Scout Jamboree held on a military 
installation, the Secretary of Defense may provide personnel services 
and logistical support at the military installation in addition to the 
support authorized under subsections (a) and (d).''.

SEC. 377. RETENTION OF MONETARY AWARDS.

    (a) Monetary Awards.--Chapter 155 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2610. Competitions for excellence: acceptance of monetary awards

    ``(a) Acceptance Authorized.--The Secretary of Defense may accept a 
monetary award given to the Department of Defense by a nongovernmental 
entity as a result of the participation of the Department in a 
competition carried out to recognize excellence or innovation in 
providing services or administering programs.
    ``(b) Disposition of Awards.--A monetary award accepted under 
subsection (a) shall be credited to one or more nonappropriated fund 
accounts supporting morale, welfare, and recreation activities for the 
command, installation, or other activity that is recognized for the 
award. Amounts so credited may be expended only for such activities.
    ``(c) Incidental Expenses.--Subject to such limitations as may be 
provided in appropriation Acts, appropriations available to the 
Department of Defense may be used to pay incidental expenses incurred by 
the Department to participate in a competition described in subsection 
(a) or to accept a monetary award under this section.
    ``(d) Regulations and Reporting.--(1) The Secretary shall prescribe 
regulations to determine the disposition of monetary awards accepted 
under this section and the payment of incidental expenses under 
subsection (c).

[[Page 110 STAT. 284]]

    ``(2) At the end of each year, the Secretary shall submit to 
Congress a report for that year describing the disposition of monetary 
awards accepted under this section and the payment of incidental 
expenses under subsection (c).
    ``(e) Termination.--The authority of the Secretary under this 
section shall expire two years after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1996.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2610. Competitions for excellence: acceptance of monetary awards.''.

SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN 
                        EMERGENCY RESPONSE ACTIONS.

    Section 372 of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary of Defense''; and
            (2) by adding at the end the following new subsection:

    ``(b) Emergencies Involving Chemical and Biological Agents.--(1) In 
addition to equipment and facilities described in subsection (a), the 
Secretary may provide an item referred to in paragraph (2) to a Federal, 
State, or local law enforcement or emergency response agency to prepare 
for or respond to an emergency involving chemical or biological agents 
if the Secretary determines that the item is not reasonably available 
from another source.
    ``(2) An item referred to in paragraph (1) is any material or 
expertise of the Department of Defense appropriate for use in preparing 
for or responding to an emergency involving chemical or biological 
agents, including the following:
            ``(A) Training facilities.
            ``(B) Sensors.
            ``(C) Protective clothing.
            ``(D) Antidotes.''.
SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND CIVIL 
                        DEFENSE PREPAREDNESS TO RESPOND TO 
                        EMERGENCIES RESULTING FROM A CHEMICAL, 
                        BIOLOGICAL, RADIOLOGICAL, OR NUCLEAR 
                        ATTACK.

    (a) Report.--(1) Not later than March 1, 1996, the Secretary of 
Defense and the Secretary of Energy shall submit to Congress a joint 
report on the military and civil defense plans and programs of the 
Department of Defense to prepare for and respond to the effects of an 
emergency in the United States resulting from a chemical, biological, 
radiological, or nuclear attack on the United States (hereinafter in 
this section referred to as an ``attack-related civil defense 
emergency'').
    (2) The report shall be prepared in consultation with the Director 
of the Federal Emergency Management Agency.

    (b) Content of Report.--The report shall include the following:
            (1) A discussion of the military and civil defense plans and 
        programs of the Department of Defense for preparing for and 
        responding to an attack-related civil defense emergency arising 
        from an attack of a type for which the Department of Defense has 
        a primary responsibility to respond.
            (2) A discussion of the military and civil defense plans and 
        programs of the Department of Defense for preparing for

[[Page 110 STAT. 285]]

        and providing a response to an attack-related civil defense 
        emergency arising from an attack of a type for which the 
        Department of Defense has responsibility to provide a supporting 
        response.
            (3) A description of any actions, and any recommended 
        legislation, that the Secretaries consider necessary for 
        improving the preparedness of the Department of Defense to 
        respond effectively to an attack-related civil defense 
        emergency.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

    (a) Fiscal Year 1996.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 1996, as follows:
            (1) The Army, 495,000, of which not more than 81,300 may be 
        commissioned officers.
            (2) The Navy, 428,340, of which not more than 58,870 may be 
        commissioned officers.
            (3) The Marine Corps, 174,000, of which not more than 17,978 
        may be commissioned officers.
            (4) The Air Force, 388,200, of which not more than 75,928 
        may be commissioned officers.

    (b) Floor on End Strengths.--(1) Chapter 39 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 691. Permanent end strength levels to support two major 
                    regional contingencies

    ``(a) The end strengths specified in subsection (b) are the minimum 
strengths necessary to enable the armed forces to fulfill a national 
defense strategy calling for the United States to be able to 
successfully conduct two nearly simultaneous major regional 
contingencies.
    ``(b) Unless otherwise provided by law, the number of members of the 
armed forces (other than the Coast Guard) on active duty at the end of 
any fiscal year shall be not less than the following:
            ``(1) For the Army, 495,000.
            ``(2) For the Navy, 395,000.
            ``(3) For the Marine Corps, 174,000.
            ``(4) For the Air Force, 381,000.

    ``(c) No funds appropriated to the Department of Defense may be used 
to implement a reduction of the active duty end strength for any of the 
armed forces for any fiscal year below the level specified in subsection 
(b) unless the Secretary of Defense submits to Congress notice of the 
proposed lower end strength levels and a justification for those levels. 
No action may then be taken to implement such a reduction for that 
fiscal year until the end of the six-month period beginning on the date 
of the receipt of such notice by Congress.

    ``(d) For a fiscal year for which the active duty end strength 
authorized by law pursuant to section 115(a)(1)(A) of this title

[[Page 110 STAT. 286]]

for any of the armed forces is identical to the number applicable to 
that armed force under subsection (b), the Secretary of Defense may 
reduce that number by not more than 0.5 percent.
    ``(e) The number of members of the armed forces on active duty shall 
be counted for purposes of this section in the same manner as applies 
under section 115(a)(1) of this title.''.

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

``691. Permanent end strength levels to support two major regional 
           contingencies.''.

    (c) Active Component End Strength Flexibility.--Section 115(c)(1) of 
title 10, United States Code, is amended by striking out ``0.5 percent'' 
and inserting in lieu thereof ``1 percent''.
SEC. 402.  <<NOTE: 10 USC 523 note.>> TEMPORARY VARIATION IN DOPMA 
                        AUTHORIZED END STRENGTH LIMITATIONS FOR 
                        ACTIVE DUTY AIR FORCE AND NAVY OFFICERS IN 
                        CERTAIN GRADES.

    (a) Air Force Officers.--In the administration of the limitation 
under section 523(a)(1) of title 10, United States Code, for fiscal 
years 1996 and 1997, the numbers applicable to officers of the Air Force 
serving on active duty in the grades of major, lieutenant colonel, and 
colonel shall be the numbers set forth for that fiscal year in the 
following table (rather than the numbers determined in accordance with 
the table in that section):

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving on active duty in
                                                                              the grade of:
                     Fiscal year:                      ---------------------------------------------------------
                                                              Major          Lieutenant colonel       Colonel
----------------------------------------------------------------------------------------------------------------
  1996................................................            15,566                  9,876           3,609
  1997................................................            15,645                  9,913           3,627
----------------------------------------------------------------------------------------------------------------

    (b) Navy Officers.--In the administration of the limitation under 
section 523(a)(2) of title 10, United States Code, for fiscal years 1996 
and 1997, the numbers applicable to officers of the Navy serving on 
active duty in the grades of lieutenant commander, commander, and 
captain shall be the numbers set forth for that fiscal year in the 
following table (rather than the numbers determined in accordance with 
the table in that section):

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving on active duty in
                                                                              the grade of:
                     Fiscal year:                      ---------------------------------------------------------
                                                            Lieutenant
                                                            commander            Commander            Captain
----------------------------------------------------------------------------------------------------------------
  1996................................................            11,924                  7,390           3,234
  1997................................................            11,732                  7,297           3,188
----------------------------------------------------------------------------------------------------------------

SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIREMENT 
                        NOT TO BE COUNTED.

    (a) Distribution of Officers on Active Duty in General and Flag 
Officer Grades.--Section 525 of title 10, United States Code, is amended 
by adding at the end the following new subsection:
    ``(d) An officer continuing to hold the grade of general or admiral 
under section 601(b)(4) of this title after relief from the position of 
Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief 
of Naval Operations, Chief of Staff of the Air Force, or Commandant of 
the Marine Corps shall not be counted for purposes of this section.''.

[[Page 110 STAT. 287]]

    (b) Number of Officers on Active Duty in Grade of General or 
Admiral.--Section 528(b) of such title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:

    ``(2) An officer continuing to hold the grade of general or admiral 
under section 601(b)(4) of this title after relief from
the position of Chairman of the Joint Chiefs of Staff, Chief of Staff of 
the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or 
Commandant of the Marine Corps shall not be counted for purposes of this 
section.''.

    (c) Clarification.--Section 601(b) of such title is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``of importance and responsibility designated'' and inserting in 
        lieu thereof ``designated under subsection (a) or by law'';
            (2) in paragraph (1), by striking out ``of importance and 
        responsibility'';
            (3) in paragraph (2), by striking out ``designating'' and 
        inserting in lieu thereof ``designated under subsection (a) or 
        by law''; and
            (4) in paragraph (4), by inserting ``under subsection (a) or 
        by law'' after ``designated''.

                       Subtitle B--Reserve Forces

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

    (a) Fiscal Year 1996.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
1996, as follows:
            (1) The Army National Guard of the United States, 373,000.
            (2) The Army Reserve, 230,000.
            (3) The Naval Reserve, 98,894.
            (4) The Marine Corps Reserve, 42,274.
            (5) The Air National Guard of the United States, 112,707.
            (6) The Air Force Reserve, 73,969.
            (7) The Coast Guard Reserve, 8,000.

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

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

[[Page 110 STAT. 288]]

SEC. 412.  <<NOTE: 10 USC 12001 note.>> END STRENGTHS FOR RESERVES 
                        ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 1996, 
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, 23,390.
            (2) The Army Reserve, 11,575.
            (3) The Naval Reserve, 17,587.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,066.
            (6) The Air Force Reserve, 628.
SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL ASSIGNED 
                        IN SUPPORT OF RESERVE COMPONENT TRAINING.

    Section 414(c) of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 12001 note) is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary of Defense may count toward the number of active 
component personnel required under paragraph (1) to be assigned to serve 
as advisers under the program under this section any active component 
personnel who are assigned to an active component unit (A) that was 
established principally for the purpose of providing dedicated training 
support to reserve component units, and (B) the primary mission of which 
is to provide such dedicated training support.''.
SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES 
                        AUTHORIZED TO SERVE ON ACTIVE DUTY IN 
                        SUPPORT OF THE RESERVES.

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,219   1,071     643      140
Lieutenant Colonel or Commander.....    1,524     520     672       90
Colonel or Navy Captain.............      412     188     274     30''.
------------------------------------------------------------------------

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

------------------------------------------------------------------------
                                                          Air     Marine
               ``Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................     603     202      366       20
E-8.................................   2,585     429      890     94''.
------------------------------------------------------------------------

SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE THREAT 
                        REDUCTION PROGRAMS NOT TO BE COUNTED.

    Section 115(d) of title 10, United States Code, is amended by adding 
at the end the following:

[[Page 110 STAT. 289]]

            ``(8) Members of the Selected Reserve of the Ready Reserve 
        on active duty for more that 180 days to support programs 
        described in section 1203(b) of the Cooperative Threat Reduction 
        Act of 1993 (title XII of Public Law 103-160; 22 U.S.C. 
        5952(b)).''.
SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY 
                        CONTACTS AND COMPARABLE ACTIVITIES NOT TO 
                        BE COUNTED.

    Section 168 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Active Duty End Strengths.--(1) A member of a reserve 
component referred to in paragraph (2) shall not be counted for purposes 
of the following personnel strength limitations:
            ``(A) The end strength for active-duty personnel authorized 
        pursuant to section 115(a)(1) of this title for the fiscal year 
        in which the member carries out the activities referred to in 
        paragraph (2).
            ``(B) The authorized daily average for members in pay grades 
        E-8 and E-9 under section 517 of this title for the calendar 
        year in which the member carries out such activities.
            ``(C) The authorized strengths for commissioned officers 
        under section 523 of this title for the fiscal year in which the 
        member carries out such activities.

    ``(2) A member of a reserve component referred to in paragraph (1) 
is any member on active duty under an order to active duty for 180 days 
or more who is engaged in activities authorized under this section.''.

               Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

    (a) In General.--For fiscal year 1996, the components of the Armed 
Forces are authorized average military training loads as follows:
            (1) The Army, 75,013.
            (2) The Navy, 44,238.
            (3) The Marine Corps, 26,095.
            (4) The Air Force, 33,232.

    (b) Scope.--The average military training student loads authorized 
for an armed force under subsection (a) apply to the active and reserve 
components of that armed force.
    (c) Adjustments.--The average military training student loads 
authorized in subsection (a) shall be adjusted consistent with the end 
strengths authorized in subtitles A and B. The Secretary of Defense 
shall prescribe the manner in which such adjustments shall be 
apportioned.

[[Page 110 STAT. 290]]

               Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1996 a total of 
$69,191,008,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1996.
SEC. 432.  <<NOTE: 10 USC 115 note.>> AUTHORIZATION FOR INCREASE 
                        IN ACTIVE-DUTY END STRENGTHS.

    (a) Authorization.--There is hereby authorized to be appropriated to 
the Department of Defense for fiscal year 1996 for military personnel 
the sum of $112,000,000. Any amount appropriated pursuant to this 
section shall be allocated, in such manner as the Secretary of Defense 
prescribes, among appropriations for active-component military personnel 
for that fiscal year and shall be available only to increase the number 
of members of the Armed Forces on active duty during that fiscal year 
(compared to the number of members that would be on active duty but for 
such appropriation).
    (b) Effect on End Strengths.--The end-strength authorizations in 
section 401 shall each be deemed to be increased by such number as 
necessary to take account of additional members of the Armed Forces 
authorized by the Secretary of Defense pursuant to subsection (a).

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

    (a) Critical Joint Duty Assignment Positions.--Section 661(d)(2)(A) 
of title 10, United States Code, is amended by striking out ``1,000'' 
and inserting in lieu thereof ``800''.

    (b) Additional Qualifying Joint Service.--Section 664 of such title 
is amended by adding at the end the following:
    ``(i) Joint Duty Credit for Certain Joint Task Force Assignments.--
(1) In the case of an officer who completes service in a qualifying 
temporary joint task force assignment, the Secretary of Defense, with 
the advice of the Chairman of the Joint Chiefs of Staff, may (subject to 
the criteria prescribed under paragraph (4)) grant the officer--
            ``(A) credit for having completed a full tour of duty in a 
        joint duty assignment; or
            ``(B) credit countable for determining cumulative service in 
        joint duty assignments.

    ``(2)(A) For purposes of paragraph (1), a qualifying temporary joint 
task force assignment of an officer is a temporary assignment, any part 
of which is performed by the officer on or after the date of the 
enactment of this subsection--

[[Page 110 STAT. 291]]

            ``(i) to the headquarters staff of a United States joint 
        task force that is part of a unified command or the United 
        States element of the headquarters staff of a multinational 
        force; and
            ``(ii) with respect to which the Secretary of Defense 
        determines that service of the officer in that assignment is 
        equivalent to that which would be gained by the officer in a 
        joint duty assignment.

    ``(B) An officer may not be granted credit under this subsection 
unless the officer is recommended for such credit by the Chairman of the 
Joint Chiefs of Staff.
    ``(3) Credit under paragraph (1) (including a determination under 
paragraph (2)(A)(ii) and a recommendation under paragraph (2)(B) with 
respect to such credit) may be granted only on a case-by-case basis in 
the case of an individual officer.
    ``(4) <<NOTE: Regulations.>> The Secretary of Defense shall 
prescribe by regulation criteria for determining whether an officer may 
be granted credit under paragraph (1) with respect to service in a 
qualifying temporary joint task force assignment. The criteria shall 
apply uniformly among the armed forces and shall include the following 
requirements:
            ``(A) For an officer to be credited as having completed a 
        full tour of duty in a joint duty assignment, the length of the 
        officer's service in the qualifying temporary joint task force 
        assignment must meet the requirements of subsection (a) or (c).
            ``(B) For an officer to be credited with service for 
        purposes of determining cumulative service in joint duty 
        assignments, the officer must serve at least 90 consecutive days 
        in the qualifying temporary joint task force assignment.
            ``(C) The service must be performed in support of a mission 
        that is directed by the President or that is assigned by the 
        President to United States forces in the joint task force 
        involved.
            ``(D) The joint task force must be constituted or designated 
        by the Secretary of Defense or by the commander of a combatant 
        command or of another force.
            ``(E) The joint task force must conduct combat or combat-
        related operations in a unified action under joint or 
        multinational command and control.

    ``(5) Officers for whom joint duty credit is granted pursuant to 
this subsection may not be taken into account for the purposes of any of 
the following provisions of this title: section 661(d)(1), section 
662(a)(3), section 662(b), subsection (a) of this section, and 
paragraphs (7), (8), (9), (11), and (12) of section 667.
    ``(6) In the case of an officer credited with having completed a 
full tour of duty in a joint duty assignment pursuant to this 
subsection, the Secretary of Defense may waive the requirement in 
paragraph (1)(B) of section 661(c) of this title that the tour of duty 
in a joint duty assignment be performed after the officer completes a 
program of education referred to in paragraph (1)(A) of that section. 
The provisions of subparagraphs (C) and (D) of section 661(c)(3) of this 
title shall apply to such a waiver in the same manner as to a waiver 
under subparagraph (A) of that section.''.

[[Page 110 STAT. 292]]

    (c) Information in Annual Report.--Section 667 of such title is 
amended by striking out paragraph (16) and inserting after paragraph 
(15) the following new paragraph (16):
            ``(16) The number of officers granted credit for service in 
        joint duty assignments under section 664(i) of this title and--
                    ``(A) of those officers--
                          ``(i) the number of officers credited with 
                      having completed a tour of duty in a joint duty 
                      assignment; and
                          ``(ii) the number of officers granted credit 
                      for purposes of determining cumulative service in 
                      joint duty assignments; and
                    ``(B) the identity of each operation for which an 
                officer has been granted credit pursuant to section 
                664(i) of this title and a brief description of the 
                mission of the operation.''.

    (d) Applicability of Limitation on Waiver Authority.--Section 
661(c)(3) of such title is amended--
            (1) in the third sentence of subparagraph (D), by striking 
        out ``The total number'' and inserting in lieu thereof ``In the 
        case of officers in grades below brigadier general and rear 
        admiral (lower half), the total number''; and
            (2) by adding at the end the following new subparagraph:

    ``(E) There may not be more than 32 general and flag officers on 
active duty at the same time who were selected for the joint specialty 
while holding a general or flag officer grade and for whom a waiver was 
granted under this subparagraph.''.

    (e) Length of Second Joint Tour.--Section 664 of such title is 
amended--
            (1) in subsection (e)(2), by inserting after subparagraph 
        (B) the following:
            ``(C) Service described in subsection (f)(6), except that no 
        more than 10 percent of all joint duty assignments shown on the 
        list published pursuant to section 668(b)(2)(A) of this title 
        may be so excluded in any year.''; and
            (2) in subsection (f)--
                    (A) in the matter preceding paragraph (1), by 
                striking out ``completion of--'' and inserting in lieu 
                thereof ``completion of any of the following:'';
                    (B) by striking out ``a'' at the beginning of 
                paragraphs (1), (2), (4), and (5) and inserting in lieu 
                thereof ``A'';
                    (C) by striking out ``cumulative'' in paragraph (3) 
                and inserting in lieu thereof ``Cumulative'';
                    (D) by striking out the semicolon at the end of 
                paragraphs (1), (2), and (3) and ``; or'' at the end of 
                paragraph (4) and inserting in lieu thereof a period; 
                and
                    (E) by adding at the end the following:
            ``(6) A second joint duty assignment that is less than the 
        period required under subsection (a), but not less than two 
        years, without regard to whether a waiver was granted for such 
        assignment under subsection (b).''.

    (f) Technical Amendment.--Section 664(e)(1) of such title is amended 
by striking out ``(after fiscal year 1990)''.
SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR GENERAL 
                        AND REAR ADMIRAL.

    (a) Applicability of Time-in-Grade Requirements.--Section 1370 of 
title 10, United States Code, is amended--

[[Page 110 STAT. 293]]

            (1) in subsection (a)(2)(A), by striking out ``and below 
        lieutenant general or vice admiral''; and
            (2) in the first sentence of subsection (d)(2)(B), as added 
        effective October 1, 1996, by section 1641 of the Reserve 
        Officer Personnel Management Act (title XVI of Public Law 103-
        337; 108 Stat. 2968), by striking out ``and below lieutenant 
        general or vice admiral''.

    (b) Retirement in Highest Grade Upon Certification of Satisfactory 
Service.--Subsection (c) of such section is amended to read as follows:
    ``(c) Officers in O-9 and O-10 Grades.--(1) An officer who is 
serving in or has served in the grade of general or admiral or 
lieutenant general or vice admiral may be retired in that grade under 
subsection (a) only after the Secretary of Defense certifies in writing 
to the President and Congress that the officer served on active duty 
satisfactorily in that grade.
    ``(2) In the case of an officer covered by paragraph (1), the three-
year service-in-grade requirement in paragraph (2)(A) of subsection (a) 
may not be reduced or waived under that subsection--
            ``(A) while the officer is under investigation for alleged 
        misconduct; or
            ``(B) while there is pending the disposition of an adverse 
        personnel action against the officer for alleged misconduct.''.

    (c) Repeal of Superseded Provisions.--Sections 3962(a), 5034, 
5043(c), and 8962(a) of such title are repealed.

    (d) Technical and Clerical Amendments.--(1) Sections 3962(b) and 
8962(b) of such title are amended by striking out ``(b) Upon'' and 
inserting in lieu thereof ``Upon''.
    (2) The table of sections at the beginning of chapter 505 of such 
title is amended by striking out the item relating to section 5034.
    (e) <<NOTE: 10 USC 1370 note.>> Effective Date for Amendment to 
Provision Taking Effect in 1996.--The amendment made by subsection 
(a)(2) shall take effect on October 1, 1996, immediately after 
subsection (d) of section 1370 of title 10, United States Code, takes 
effect under section 1691(b)(1) of the Reserve Officer Personnel 
Management Act (108 Stat. 3026).

    (f) Preservation of Applicability of Limitation.--Section 
1370(a)(2)(C) of title 10, United States Code, is amended by striking 
out ``The number of officers in an armed force in a grade'' and 
inserting in lieu thereof ``In the case of a grade below the grade of 
lieutenant general or vice admiral, the number of members of one of the 
armed forces in that grade''.
    (g) Stylistic Amendments.--Section 1370 of title 10, United States 
Code, is further amended--
            (1) in subsection (a), by striking out ``(a)(1)'' and 
        inserting in lieu thereof ``(a) Rule for Retirement in Highest 
        Grade Held Satisfactorily.--(1)'';
            (2) in subsection (b), by inserting ``Retirement in Next 
        Lower Grade.--'' after ``(b)''; and
            (3) in subsection (d), as added effective October 1, 1996, 
        by section 1641 of the Reserve Officer Personnel Management Act 
        (title XVI of Public Law 103-337; 108 Stat. 2968), by striking 
        out ``(d)(1)'' and inserting in lieu thereof ``(d) Reserve 
        Officers.--(1)''.

[[Page 110 STAT. 294]]

SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE PROMOTION.

    (a) Authority and Limitations.--(1) Chapter 45 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 777. Wearing of insignia of higher grade before promotion 
                  (frocking): authority; restrictions

    ``(a) Authority.--An officer who has been selected for promotion to 
the next higher grade may be authorized, under regulations and policies 
of the Department of Defense and subject to subsection (b), to wear the 
insignia for that next higher grade. An officer who is so authorized to 
wear the insignia of the next higher grade is said to be `frocked' to 
that grade.
    ``(b) Restrictions.--An officer may not be authorized to wear the 
insignia for a grade as described in subsection (a) unless--
            ``(1) the Senate has given its advice and consent to the 
        appointment of the officer to that grade; and
            ``(2) the officer is serving in, or has received orders to 
        serve in, a position for which that grade is authorized.

    ``(c) Benefits Not To Be Construed as Accruing.--(1) Authority 
provided to an officer as described in subsection (a) to wear the 
insignia of the next higher grade may not be construed as conferring 
authority for that officer to--
            ``(A) be paid the rate of pay provided for an officer in 
        that grade having the same number of years of service as that 
        officer; or
            ``(B) assume any legal authority associated with that grade.

    ``(2) The period for which an officer wears the insignia of the next 
higher grade under such authority may not be taken into account for any 
of the following purposes:
            ``(A) Seniority in that grade.
            ``(B) Time of service in that grade.

    ``(d) Limitation on Number of Officers Frocked to Specified 
Grades.--(1) The total number of colonels and Navy captains on the 
active-duty list who are authorized as described in subsection (a) to 
wear the insignia for the grade of brigadier general or rear admiral 
(lower half), as the case may be, may not exceed the following:
            ``(A) During fiscal years 1996 and 1997, 75.
            ``(B) During fiscal year 1998, 55.
            ``(C) After fiscal year 1998, 35.

    ``(2) The number of officers of an armed force on the active-duty 
list who are authorized as described in subsection (a) to wear the 
insignia for a grade to which a limitation on total number applies under 
section 523(a) of this title for a fiscal year may not exceed 1 percent 
of the total number provided for the officers in that grade in that 
armed force in the administration of the limitation under that section 
for that fiscal year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``777. Wearing of insignia of higher grade before promotion (frocking): 
           authority; restrictions.''.

    (b) <<NOTE: 10 USC 777 note.>> Temporary Variation of Limitations on 
Numbers of Frocked Officers.--In the administration of section 777(d)(2) 
of title 10, United States Code (as added by subsection (a)), the 
percent

[[Page 110 STAT. 295]]

limitation applied under that section for fiscal year 1996 shall be 2 
percent (instead of 1 percent).

    (c) Report.--Not later than September 1, 1996, the Secretary of 
Defense shall submit to Congress a report providing the assessment of 
the Secretary on the practice, known as ``frocking'', of authorizing an 
officer who has been selected for promotion to the next higher grade to 
wear the insignia for that next higher grade. The report shall include 
the Secretary's assessment of the appropriate number, if any, of 
colonels and Navy captains to be eligible under section 777(d)(1) of 
title 10, United States Code (as added by subsection (a)), to wear the 
insignia for the grade of brigadier general or rear admiral (lower 
half).
SEC. 504. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS 
                        SELECTED FOR EARLY RETIREMENT.

    (a) Selective Retirement of Warrant Officers.--Section 581 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(e) The Secretary concerned may defer for not more than 90 days 
the retirement of an officer otherwise approved for early retirement 
under this section in order to prevent a personal hardship to the 
officer or for other humanitarian reasons. Any such deferral shall be 
made on a case-by-case basis considering the circumstances of the case 
of the particular officer concerned. The authority of the Secretary to 
grant such a deferral may not be delegated.''.
    (b) Selective Early Retirement of Active-Duty Officers.--Section 
638(b) of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(3) The Secretary concerned may defer for not more than 90 days 
the retirement of an officer otherwise approved for early retirement 
under this section or section 638a of this title in order to prevent a 
personal hardship to the officer or for other humanitarian reasons. Any 
such deferral shall be made on a case-by-case basis considering the 
circumstances of the case of the particular officer concerned. The 
authority of the Secretary to grant such a deferral may not be 
delegated.''.

SEC. 505. ARMY OFFICER MANNING LEVELS.

    (a) In General.--(1) Chapter 331 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:
``Sec. 3201. Officers on active duty: minimum strength based on 
                    requirements

    ``(a) The Secretary of the Army shall ensure that (beginning with 
fiscal year 1999) the strength at the end of each fiscal year of 
officers on active duty is sufficient to enable the Army to meet at 
least that percentage of the programmed manpower structure for officers 
for the active component of the Army that is provided for in the most 
recent Defense Planning Guidance issued by the Secretary of Defense.
    ``(b) The number of officers on active duty shall be counted for 
purposes of this section in the same manner as applies under section 
115(a)(1) of this title.
    ``(c) In this section:
            ``(1) The term `programmed manpower structure' means the 
        aggregation of billets describing the full manpower require

[[Page 110 STAT. 296]]

        ments for units and organizations in the programmed force 
        structure.
            ``(2) The term `programmed force structure' means the set of 
        units and organizations that exist in the current year and that 
        is planned to exist in each future year under the then-current 
        Future-Years Defense Program.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after ``Sec.'' the following new item:

``3201. Officers on active duty: minimum strength based on 
           requirements.''.

  (b) <<NOTE: 10 USC 3201 note.>> Assistance in Accomplishing 
Requirement.--The Secretary of Defense shall provide to the Army 
sufficient personnel and financial resources to enable the Army to meet 
the requirement specified in section 3201 of title 10, United States 
Code, as added by subsection (a).
SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER THAN 
                        PHYSICIANS TO BE APPOINTED AS SURGEON 
                        GENERAL.

    (a) Surgeon General of the Army.--The third sentence of section 
3036(b) of title 10, United States Code, is amended by inserting after 
``The Surgeon General'' the following: ``may be appointed from officers 
in any corps of the Army Medical Department and''.
    (b) Surgeon General of the Navy.--Section 5137 of such title is 
amended--
            (1) in the first sentence of subsection (a), by striking out 
        ``in the Medical Corps'' and inserting in lieu thereof ``in any 
        corps of the Navy Medical Department''; and
            (2) in subsection (b), by striking out ``in the Medical 
        Corps'' and inserting in lieu thereof ``who is qualified to be 
        the Chief of the Bureau of Medicine and Surgery''.

    (c) Surgeon General of the Air Force.--The first sentence of section 
8036 of such title is amended by striking out ``designated as medical 
officers under section 8067(a) of this title'' and inserting in lieu 
thereof ``in the Air Force medical department''.

SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

    (a) Tenure and Grade of Deputy Judge Advocate General.--Section 
8037(d)(1) of such title is amended--
            (1) in the second sentence, by striking out ``two years'' 
        and inserting in lieu thereof ``four years''; and
            (2) by striking out the last sentence and inserting in lieu 
        thereof the following: ``An officer appointed as Deputy Judge 
        Advocate General who holds a lower regular grade shall be 
        appointed in the regular grade of major general.''.

    (b) <<NOTE: 10 USC 8037 note.>> Effective Date.--The amendments made 
by subsection (a) apply to any appointment to the position of Deputy 
Judge Advocate General of the Air Force that is made after the date of 
the enactment of this Act.
SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN NAVY 
                        LIEUTENANTS WITH CRITICAL SKILLS.

    (a) Extension of Authority.--Subsection (f) of section 5721 of title 
10, United States Code, is amended by striking out ``September 30, 
1995'' and inserting in lieu thereof ``September 30, 1996''.
    (b) Limitation.--Such section is further amended--
            (1) by redesignating subsection (f), as amended by 
        subsection (a), as subsection (g); and

[[Page 110 STAT. 297]]

            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Limitation on Number of Eligible Positions.--(1) An 
appointment under this section may only be made for service in a 
position designated by the Secretary of the Navy for purposes of this 
section. The number of positions so designated may not exceed 325.
    ``(2) <<NOTE: Notice.>> Whenever the Secretary makes a change to the 
positions designated under paragraph (1), the Secretary shall submit 
notice of the change in writing to Congress.''.

    (c) Report.--Not later than April 1, 1996, the Secretary of Defense 
shall submit to Congress a report providing the Secretary's assessment 
of that continuing need for the promotion authority under section 5721 
of title 10, United States Code. The Secretary shall include in the 
report the following:
            (1) The nature and grade structure of the positions for 
        which such authority has been used.
            (2) The cause or causes of the reported chronic shortages of 
        qualified personnel in the required grade to fill the positions 
        specified under paragraph (1).
            (3) The reasons for the perceived inadequacy of the officer 
        promotion system (including ``below-the-zone'' selections) to 
        provide sufficient officers in the required grade to fill those 
        positions.
            (4) The extent to which a bonus program or some other 
        program would be a more appropriate means of resolving the 
        reported chronic shortages in engineering positions.

    (d) Clerical Amendments.--Section 5721 of title 10, United States 
Code, is amended as follows:
            (1) Subsection (a) is amended by inserting ``Promo
        tion Authority for Certain Officer With Critical
        Skills.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting ``Status of 
        Officers Appointed.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Board 
        Recommendation Required.--'' after ``(c)''.
            (4) Subsection (d) is amended by inserting ``Acceptance and 
        Effective Date of Appointment.--'' after ``(d)''.
            (5) Subsection (e) is amended by inserting ``Termination of 
        Appointment.--'' after ``(e)''.
            (6) Subsection (g), as redesignated by subsection (b)(1), is 
        amended by inserting ``Termination of Appointment Authority.--'' 
        after ``(g)''.

    (e) <<NOTE: 10 USC 5721 note.>> Effective Date.--Subsection (f) of 
section 5721 of title 10, United States Code, as added by subsection 
(b)(2), shall take effect at the end of the 30-day period beginning on 
the date of the enactment of this Act and shall apply to any appointment 
under that section after the end of such period.
SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF 
                        ADMISSIONS OF MILITARY AND AIR FORCE 
                        ACADEMIES.

    (a) Military Academy.--(1) Section 3920 of title 10, United States 
Code, is amended to read as follows:

[[Page 110 STAT. 298]]

``Sec. 3920. More than thirty years: permanent professors and the 
                    Director of Admissions of the United States 
                    Military Academy

    ``(a) The Secretary of the Army may retire an officer specified in 
subsection (b) who has more than 30 years of service as a commissioned 
officer.
    ``(b) Subsection (a) applies in the case of the following officers:
            ``(1) Any permanent professor of the United States Military 
        Academy.
            ``(2) The Director of Admissions of the United States 
        Military Academy.''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 367 of such title is amended to read as 
follows:

``3920. More than thirty years: permanent professors and the Director of 
           Admissions of the United States Military Academy.''.

    (b) Air Force Academy.--(1) Section 8920 of title 10, United States 
Code, is amended to read as follows:
``Sec. 8920. More than thirty years: permanent professors and the 
                    Director of Admissions of the United States 
                    Air Force Academy

    ``(a) The Secretary of the Air Force may retire an officer specified 
in subsection (b) who has more than 30 years of service as a 
commissioned officer.
    ``(b) Subsection (a) applies in the case of the following officers:
            ``(1) Any permanent professor of the United States Air Force 
        Academy.
            ``(2) The Director of Admissions of the United States Air 
        Force Academy.''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 867 of such title is amended to read as 
follows:

``8920. More than thirty years: permanent professors and the Director of 
           Admissions of the United States Air Force Academy.''.

           Subtitle B--Matters Relating to Reserve Components

SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT 
                        AUTHORITIES.

    (a) Grade Determination Authority for Certain Reserve Medical 
Officers.--Sections 3359(b) and 8359(b) of title 10, United States Code, 
are each amended by striking out ``September 30, 1995'' and inserting in 
lieu thereof ``September 30, 1996''.
    (b) Promotion Authority for Certain Reserve Officers Serving on 
Active Duty.--Sections 3380(d) and 8380(d) of title 10, United States 
Code, are each amended by striking out ``September 30, 1995'' and 
inserting in lieu thereof ``September 30, 1996''.
    (c) <<NOTE: 10 USC 3360 note.>> Years of Service for Mandatory 
Transfer to the Retired Reserve.--Section 1016(d) of the Department of 
Defense Authorization Act, 1984 (10 U.S.C. 3360) is amended by striking 
out ``September 30, 1995'' and inserting in lieu thereof ``September 30, 
1996''.

[[Page 110 STAT. 299]]

SEC. 512. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS OF 
                        READY RESERVE.

    (a) Establishment of Program.--(1) Subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1213 the following 
new chapter:

       ``CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

``Sec.
``12521. Definitions.
``12522. Establishment of insurance program.
``12523. Risk insured.
``12524. Enrollment and election of benefits.
``12525. Benefit amounts.
``12526. Premiums.
``12527. Payment of premiums.
``12528. Reserve Mobilization Income Insurance Fund.
``12529. Board of Actuaries.
``12530. Payment of benefits.
``12531. Purchase of insurance.
``12532. Termination for nonpayment of premiums; forfeiture.

``Sec. 12521. Definitions

    ``In this chapter:
            ``(1) The term `insurance program' means the Ready Reserve 
        Mobilization Income Insurance Program established under section 
        12522 of this title.
            ``(2) The term `covered service' means active duty performed 
        by a member of a reserve component under an order to active duty 
        for a period of more than 30 days which specifies that the 
        member's service--
                    ``(A) is in support of an operational mission for 
                which members of the reserve components have been 
                ordered to active duty without their consent; or
                    ``(B) is in support of forces activated during a 
                period of war declared by Congress or a period of 
                national emergency declared by the President or 
                Congress.
            ``(3) The term `insured member' means a member of the Ready 
        Reserve who is enrolled for coverage under the insurance program 
        in accordance with section 12524 of this title.
            ``(4) The term `Secretary' means the Secretary of Defense.
            ``(5) The term `Department' means the Department of Defense.
            ``(6) The term `Board of Actuaries' means the Department of 
        Defense Education Benefits Board of Actuaries referred to in 
        section 2006(e)(1) of this title.
            ``(7) The term `Fund' means the Reserve Mobilization Income 
        Insurance Fund established by section 12528(a) of this title.

``Sec. 12522. Establishment of insurance program

    ``(a) Establishment.--The Secretary shall establish for members of 
the Ready Reserve (including the Coast Guard Reserve) an insurance 
program to be known as the `Ready Reserve Mobilization Income Insurance 
Program'.
    ``(b) Administration.--The insurance program shall be administered 
by the Secretary. The Secretary may prescribe in regulations such rules, 
procedures, and policies as the Secretary considers necessary or 
appropriate to carry out the insurance program.

[[Page 110 STAT. 300]]

    ``(c) Agreement With Secretary of Transportation.--The Secretary and 
the Secretary of Transportation shall enter into an agreement with 
respect to the administration of the insurance program for the Coast 
Guard Reserve.

``Sec. 12523. Risk insured

    ``(a) In General.--The insurance program shall insure members of the 
Ready Reserve against the risk of being ordered into covered service.
    ``(b) Entitlement to Benefits.--(1) An insured member ordered into 
covered service shall be entitled to payment of a benefit for each month 
(and fraction thereof) of covered service that exceeds 30 days of 
covered service, except that no member may be paid under the insurance 
program for more than 12 months of covered service served during any 
period of 18 consecutive months.
    ``(2) Payment shall be based solely on the insured status of a 
member and on the period of covered service served by the member. Proof 
of loss of income or of expenses incurred as a result of covered service 
may not be required.

``Sec. 12524. Enrollment and election of benefits

    ``(a) Enrollment.--(1) Except as provided in subsection (f), upon 
first becoming a member of the Ready Reserve, a member shall be 
automatically enrolled for coverage under the insurance program. An 
automatic enrollment of a member shall be void if within 60 days after 
first becoming a member of the Ready Reserve the member declines 
insurance under the program in accordance with the regulations 
prescribed by the Secretary.
    ``(2) Promptly after the insurance program is established, the 
Secretary shall offer to members of the reserve components
who are then members of the Ready Reserve (other than members ineligible 
under subsection (f)) an opportunity to enroll for coverage under the 
insurance program. A member who fails to enroll within 60 days after 
being offered the opportunity shall be considered as having declined to 
be insured under the program.

    ``(3) A member of the Ready Reserve ineligible to enroll under 
subsection (f) shall be afforded an opportunity to enroll upon being 
released from active duty in accordance with regulations prescribed by 
the Secretary if the member has not previously had the opportunity to be 
enrolled under paragraph (1) or (2). A member who fails to enroll within 
60 days after being afforded that opportunity shall be considered as 
having declined to be insured under the program.
    ``(b) Election of Benefit Amount.--The amount of a member's monthly 
benefit under an enrollment shall be the basic benefit under subsection 
(a) of section 12525 of this title unless the member elects a different 
benefit under subsection (b) of such section within 60 days after first 
becoming a member of the Ready Reserve or within 60 days after being 
offered the opportunity to enroll, as the case may be.
    ``(c) Elections Irrevocable.--(1) An election to decline insurance 
pursuant to paragraph (1) or (2) of subsection (a) is irrevocable.
    ``(2) The amount of coverage may not be increased after enrollment.
    ``(d) Election To Terminate.--A member may terminate an enrollment 
at any time.

[[Page 110 STAT. 301]]

    ``(e) Information To Be Furnished.--The Secretary shall ensure that 
members referred to in subsection (a) are given a written explanation of 
the insurance program and are advised that they have the right to 
decline to be insured and, if not declined, to elect coverage for a 
reduced benefit or an enhanced benefit under subsection (b).
    ``(f) Members Ineligible To Enroll.--Members of the Ready Reserve 
serving on active duty (or full-time National Guard duty) are not 
eligible to enroll for coverage under the insurance program. The 
Secretary may define any additional category of members of the Ready 
Reserve to be excluded from eligibility to purchase insurance under this 
chapter.

``Sec. 12525. Benefit amounts

    ``(a) Basic Benefit.--The basic benefit for an insured member under 
the insurance program is $1,000 per month (as adjusted under subsection 
(d)).
    ``(b) Reduced and Enhanced Benefits.--Under the regulations 
prescribed by the Secretary, a person enrolled for coverage under the 
insurance program may elect--
            ``(1) a reduced coverage benefit equal to one-half the 
        amount of the basic benefit; or
            ``(2) an enhanced benefit in the amount of $1,500, $2,000, 
        $2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month (as 
        adjusted under subsection (d)).

    ``(c) Amount for Partial Month.--The amount of insurance payable to 
an insured member for any period of covered service that is less than 
one month shall be determined by multiplying \1/30\ of the monthly 
benefit rate for the member by the number of days of the covered service 
served by the member during such period.
    ``(d) Adjustment of Amounts.--(1) The Secretary shall determine 
annually the effect of inflation on benefits and shall adjust the 
amounts set forth in subsections (a) and (b)(2) to maintain the constant 
dollar value of the benefit.
    ``(2) If the amount of a benefit as adjusted under paragraph (1) is 
not evenly divisible by $10, the amount shall be rounded to the nearest 
multiple of $10, except that an amount evenly divisible by $5 but not by 
$10 shall be rounded to the next lower amount that is evenly divisible 
by $10.

``Sec. 12526. Premiums

    ``(a) Establishment of Rates.--(1) The Secretary, in consultation 
with the Board of Actuaries, shall prescribe the premium rates for 
insurance under the insurance program.
    ``(2) The Secretary shall prescribe a fixed premium rate for each 
$1,000 of monthly insurance benefit. The premium amount shall be equal 
to the share of the cost attributable to insuring the member and shall 
be the same for all members of the Ready Reserve who are insured under 
the insurance program for the same benefit amount. The Secretary shall 
prescribe the rate on the basis of the best available estimate of risk 
and financial exposure, levels of subscription by members, and other 
relevant factors.
    ``(b) Level Premiums.--The premium rate prescribed for the first 
year of insurance coverage of an insured member shall be continued 
without change for subsequent years of insurance coverage, except that 
the Secretary, after consultation with the Board

[[Page 110 STAT. 302]]

of Actuaries, may adjust the premium rate in order to fund inflation-
adjusted benefit increases on an actuarially sound basis.

``Sec. 12527. Payment of premiums

    ``(a) Methods of Payment.--(1) The monthly premium for coverage of a 
member under the insurance program shall be deducted and withheld from 
the insured member's pay for each month.
    ``(2) An insured member who does not receive pay on a monthly basis 
shall pay the Secretary directly the premium amount applicable for the 
level of benefits for which the member is insured.
    ``(b) Advance Pay for Premium.--The Secretary concerned may advance 
to an insured member the amount equal to the first insurance premium 
payment due under this chapter. The advance may be paid out of 
appropriations for military pay. An advance to a member shall be 
collected from the member either by deducting and withholding the amount 
from basic pay payable for the member or by collecting it from the 
member directly. No disbursing or certifying officer shall be 
responsible for any loss resulting from an advance under this 
subsection.
    ``(c) Premiums To Be Deposited in Fund.--Premium amounts deducted 
and withheld from the pay of insured members and premium amounts paid 
directly to the Secretary shall be credited monthly to the Fund.

``Sec. 12528. Reserve Mobilization Income Insurance Fund

    ``(a) Establishment.--There is established on the books of the 
Treasury a fund to be known as the `Reserve Mobilization Income 
Insurance Fund', which shall be administered by the Secretary of the 
Treasury. The Fund shall be used for the accumulation of funds in order 
to finance the liabilities of the insurance program on an actuarially 
sound basis.
    ``(b) Assets of Fund.--There shall be deposited into the Fund the 
following:
            ``(1) Premiums paid under section 12527 of this title.
            ``(2) Any amount appropriated to the Fund.
            ``(3) Any return on investment of the assets of the Fund.

    ``(c) Availability.--Amounts in the Fund shall be available for 
paying insurance benefits under the insurance program.
    ``(d) Investment of Assets of Fund.--The Secretary of the Treasury 
shall invest such portion of the Fund as is not in the judgment of the 
Secretary of Defense required to meet current liabilities. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the Fund, as determined by the Secretary of Defense, and 
bearing interest at rates determined by the Secretary of the Treasury, 
taking into consideration current market yields on outstanding 
marketable obligations of the United States of comparable maturities. 
The income on such investments shall be credited to the Fund.
    ``(e) Annual Accounting.--At the beginning of each fiscal year, the 
Secretary, in consultation with the Board of Actuaries and the Secretary 
of the Treasury, shall determine the following:
            ``(1) The projected amount of the premiums to be collected, 
        investment earnings to be received, and any transfers or 
        appropriations to be made for the Fund for that fiscal year.

[[Page 110 STAT. 303]]

            ``(2) The amount for that fiscal year of any cumulative 
        unfunded liability (including any negative amount or any gain to 
        the Fund) resulting from payments of benefits.
            ``(3) The amount for that fiscal year (including any 
        negative amount) of any cumulative actuarial gain or loss to the 
        Fund.

``Sec. 12529. Board of Actuaries

    ``(a) Actuarial Responsibility.--The Board of Actuaries shall have 
the actuarial responsibility for the insurance program.
    ``(b) Valuations and Premium Recommendations.--The Board of 
Actuaries shall carry out periodic actuarial valuations of the benefits 
under the insurance program and determine a premium rate methodology for 
the Secretary to use in setting premium rates for the insurance program. 
The Board shall conduct the first valuation and determine a premium rate 
methodology not later than six months after the insurance program is 
established.
    ``(c) Effects of Changed Benefits.--If at the time of any actuarial 
valuation under subsection (b) there has been a change in benefits under 
the insurance program that has been made since the last such valuation 
and such change in benefits increases or decreases the present value of 
amounts payable from the Fund, the Board of Actuaries shall determine a 
premium rate methodology, and recommend to the Secretary a premium 
schedule, for the liquidation of any liability (or actuarial gain to the 
Fund) resulting from such change and any previous such changes so that 
the present value of the sum of the scheduled premium payments (or 
reduction in payments that would otherwise be made) equals the 
cumulative increase (or decrease) in the present value of such benefits.
    ``(d) Actuarial Gains or Losses.--If at the time of any such 
valuation the Board of Actuaries determines that there has been an 
actuarial gain or loss to the Fund as a result of changes in actuarial 
assumptions since the last valuation or as a result of any differences, 
between actual and expected experience since the last valuation, the 
Board shall recommend to the Secretary a premium rate schedule for the 
amortization of the cumulative gain or loss to the Fund resulting from 
such changes in assumptions and any previous such changes in assumptions 
or from the differences in actual and expected experience, respectively, 
through an increase or decrease in the payments that would otherwise be 
made to the Fund.
    ``(e) Insufficient Assets.--If at any time liabilities of the Fund 
exceed assets of the Fund as a result of members of the Ready Reserve 
being ordered to active duty as described in section 12521(2) of this 
title, and funds are unavailable to pay benefits completely, the 
Secretary shall request the President to submit to Congress a request 
for a special appropriation to cover the unfunded liability. If 
appropriations are not made to cover an unfunded liability in any fiscal 
year, the Secretary shall reduce the amount of the benefits paid under 
the insurance program to a total amount that does not exceed the assets 
of the Fund expected to accrue by the end of such fiscal year. Benefits 
that cannot be paid because of such a reduction shall be deferred and 
may be paid only after and to the extent that additional funds become 
available.
    ``(f) Definition of Present Value.--The Board of Actuaries shall 
define the term `present value' for purposes of this subsection.

[[Page 110 STAT. 304]]

``Sec. 12530. Payment of benefits

    ``(a) Commencement of Payment.--An insured member who serves in 
excess of 30 days of covered service shall be paid the amount to which 
such member is entitled on a monthly basis beginning not later than one 
month after the 30th day of covered service.
    ``(b) <<NOTE: Regulations.>> Method of Payment.--The Secretary shall 
prescribe in the regulations the manner in which payments shall be made 
to the member or to a person designated in accordance with subsection 
(c).

    ``(c) Designated Recipients.--(1) A member may designate in writing 
another person (including a spouse, parent, or other person with an 
insurable interest, as determined in accordance with the regulations 
prescribed by the Secretary) to receive payments of insurance benefits 
under the insurance program.
    ``(2) A member may direct that payments of insurance benefits for a 
person designated under paragraph (1) be deposited with a bank or other 
financial institution to the credit of the designated person.
    ``(d) Recipients in Event of Death of Insured Member.--Any insurance 
payable under the insurance program on account of a deceased member's 
period of covered service shall be paid, upon the establishment of a 
valid claim, to the beneficiary or beneficiaries which the deceased 
member designated in writing. If no such designation has been made, the 
amount shall be payable in accordance with the laws of the State of the 
member's domicile.

``Sec. 12531. Purchase of insurance

    ``(a) Purchase Authorized.--The Secretary may, instead of or in 
addition to underwriting the insurance program through the Fund, 
purchase from one or more insurance companies a policy or policies of 
group insurance in order to provide the benefits required under this 
chapter. The Secretary may waive any requirement for full and open 
competition in order to purchase an insurance policy under this 
subsection.
    ``(b) Eligible Insurers.--In order to be eligible to sell insurance 
to the Secretary for purposes of subsection (a), an insurance company 
shall--
            ``(1) be licensed to issue insurance in each of the 50 
        States and in the District of Columbia; and
            ``(2) as of the most recent December 31 for which 
        information is available to the Secretary, have in effect at 
        least one percent of the total amount of insurance that all such 
        insurance companies have in effect in the United States.

    ``(c) Administrative Provisions.--(1) An insurance company that 
issues a policy for purposes of subsection (a) shall establish an 
administrative office at a place and under a name designated by the 
Secretary.

    ``(2) For the purposes of carrying out this chapter, the Secretary 
may use the facilities and services of any insurance company issuing any 
policy for purposes of subsection (a), may designate one such company as 
the representative of the other companies for such purposes, and may 
contract to pay a reasonable fee to the designated company for its 
services.
    ``(d) Reinsurance.--The Secretary shall arrange with each insurance 
company issuing any policy for purposes of subsection (a) to reinsure, 
under conditions approved by the Secretary, portions

[[Page 110 STAT. 305]]

of the total amount of the insurance under such policy or policies with 
such other insurance companies (which meet qualifying criteria 
prescribed by the Secretary) as may elect to participate in such 
reinsurance.
    ``(e) Termination.--The Secretary may at any time terminate any 
policy purchased under this section.
``Sec. 12532. Termination for nonpayment of premiums; forfeiture

    ``(a) Termination for Nonpayment.--The coverage of a member under 
the insurance program shall terminate without prior notice upon a 
failure of the member to make required monthly payments of premiums for 
two consecutive months. The Secretary may provide in the regulations for 
reinstatement of insurance coverage terminated under this subsection.
    ``(b) Forfeiture.--Any person convicted of mutiny, treason, spying, 
or desertion, or who refuses to perform service in the armed forces or 
refuses to wear the uniform of any of the armed forces shall forfeit all 
rights to insurance under this chapter.''.
    (2) The tables of chapters at the beginning of subtitle E, and at 
the beginning of part II of subtitle E, of title 10, United States Code, 
are amended by inserting after the item relating to chapter 1213 the 
following new item:

``1214. Ready Reserve Mobilization Income Insurance.............12521''.

    (b) <<NOTE: Federal Register, publication. 10 USC 12521 
note.>> Effective Date.--The insurance program provided for in chapter 
1214 of title 10, United States Code, as added by subsection (a), and 
the requirement for deductions and contributions for that program shall 
take effect on September 30, 1996, or on any earlier date declared by 
the Secretary and published in the Federal Register.
SEC. 513. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR ARMY 
                        AND AIR FORCE RESERVE COMPONENTS.

    (a) Requirement of Annual Authorization of End Strength.--(1) 
Section 115 of title 10, United States Code, is amended by adding at the 
end the following new subsection:
    ``(g) Congress shall authorize for each fiscal year the end strength 
for military technicians for each reserve component of the Army and Air 
Force. Funds available to the Department of Defense for any fiscal year 
may not be used for the pay of a military technician during that fiscal 
year unless the technician fills a position that is within the number of 
such positions authorized by law for that fiscal year for the reserve 
component of that technician. This subsection applies without regard to 
section 129 of this title.''.

    (2) <<NOTE: 10 USC 115 note.>> The amendment made by paragraph (1) 
does not apply with respect to fiscal year 1995.

    (b) <<NOTE: 10 USC 115 note.>> Authorization for Fiscal Years 1996 
and 1997.--For each of fiscal years 1996 and 1997, the minimum number of 
military technicians, as of the last day of that fiscal year, for the 
Army and the Air Force (notwithstanding section 129 of title 10, United 
States Code) shall be the following:
            (1) Army National Guard, 25,500.
            (2) Army Reserve, 6,630.
            (3) Air National Guard, 22,906.
            (4) Air Force Reserve, 9,802.

[[Page 110 STAT. 306]]

    (c) Administration of Military Technician Program.--(1) Chapter 1007 
of title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 10216. Military technicians

    ``(a) Priority for Management of Military Technicians.--(1) As a 
basis for making the annual request to Congress pursuant to section 115 
of this title for authorization of end strengths for military 
technicians of the Army and Air Force reserve components, the Secretary 
of Defense shall give priority to supporting authorizations for dual 
status military technicians in the following high-priority units and 
organizations:
            ``(A) Units of the Selected Reserve that are scheduled to 
        deploy no later than 90 days after mobilization.
            ``(B) Units of the Selected Reserve that are or will deploy 
        to relieve active duty peacetime operations tempo.
            ``(C) Those organizations with the primary mission of 
        providing direct support surface and aviation maintenance for 
        the reserve components of the Army and Air Force, to the extent 
        that the military technicians in such units would mobilize and 
        deploy in a skill that is compatible with their civilian 
        position skill.

    ``(2) For each fiscal year, the Secretary of Defense shall, for the 
high-priority units and organizations referred to in paragraph (1), seek 
to achieve a programmed manning level for military technicians that is 
not less than 90 percent of the programmed manpower structure for those 
units and organizations for military technicians for that fiscal year.
    ``(3) Military technician authorizations and personnel in high-
priority units and organizations specified in paragraph (1) shall be 
exempt from any requirement (imposed by law or otherwise) for reductions 
in Department of Defense civilian personnel and shall only be reduced as 
part of military force structure reductions.
    ``(b) Dual-Status Requirement.--The Secretary of Defense shall 
require the Secretary of the Army and the Secretary of the Air Force to 
establish as a condition of employment for each individual who is hired 
after the date of the enactment of this section as a military technician 
that the individual maintain membership in the Selected Reserve (so as 
to be a so-called `dual-status' technician) and shall require that the 
civilian and military position skill requirements of dual-status 
military technicians be compatible. No Department of Defense funds may 
be spent for compensation for any military technician hired after the 
date of the enactment of this section who
is not a member of the Selected Reserve, except that compensation may be 
paid for up to six months following loss of membership in the Selected 
Reserve if such loss of membership was not due to the failure to meet 
military standards.''.

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

``10216. Military technicians.''.

    (d) Review of Reserve Component Management Headquarters.--(1) The 
Secretary of Defense shall, within six months after the date of the 
enactment of this Act, undertake steps to reduce, consolidate, and 
streamline management headquarters operations of the reserve components. 
As part of those steps, the Secretary shall identify those military 
technicians positions in such

[[Page 110 STAT. 307]]

headquarters operations that are excess to the requirements of those 
headquarters.
    (2) Of the military technicians positions that are identified under 
paragraph (1), the Secretary shall reallocate up to 95 percent of the 
annual funding required to support those positions for the purpose of 
creating new positions or filling existing positions in the high-
priority units and activities specified in section 10216(a) of title 10, 
United States Code, as added by subsection (c).
    (e) Annual Defense Manpower Requirements Report.--Section 115a of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(h) In each such report, the Secretary shall include a separate 
report on the Army and Air Force military technician programs. The 
report shall include a presentation, shown by reserve component and 
shown both as of the end of the preceding fiscal year and for the next 
fiscal year, of the following:
            ``(1) The number of military technicians required to be 
        employed (as specified in accordance with Department of Defense 
        procedures), the number authorized to be employed under 
        Department of Defense personnel procedures, and the number 
        actually employed.
            ``(2) Within each of the numbers under paragraph (1)--
                    ``(A) the number applicable to a reserve component 
                management headquarter organization; and
                    ``(B) the number applicable to high-priority units 
                and organizations (as specified in section 10216(a) of 
                this title).
            ``(3) Within each of the numbers under paragraph (1), the 
        numbers of military technicians who are not themselves members 
        of a reserve component (so-called `single-status' technicians), 
        with a further display of such numbers as specified in paragraph 
        (2).''.
SEC. 514. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO 
                        INCLUDE ARMY RESERVE UNDER CERTAIN 
                        PROVISIONS AND MAKE CERTAIN REVISIONS.

    (a) Prior Active Duty Personnel.--Section 1111 of the Army National 
Guard Combat Readiness Reform Act of 1992 (title XI of Public Law 102-
484) <<NOTE: 10 USC 10105 note.>> is amended--
            (1) in the section heading, by striking out the first three 
        words;
            (2) by striking out subsections (a) and (b) and inserting in 
        lieu thereof the following:

    ``(a) Additional Prior Active Duty Officers.--The Secretary of the 
Army shall increase the number of qualified prior active-duty officers 
in the Army National Guard by providing a program that permits the 
separation of officers on active duty with at least two, but less than 
three, years of active service upon condition that the officer is 
accepted for appointment in the Army National Guard. The Secretary shall 
have a goal of having not fewer than 150 officers become members of the 
Army National Guard each year under this section.
    ``(b) Additional Prior Active Duty Enlisted Members.--The Secretary 
of the Army shall increase the number of qualified prior active-duty 
enlisted members in the Army National Guard through the use of 
enlistments as described in section 8020 of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139). The Secretary shall 
enlist not fewer than 1,000 new

[[Page 110 STAT. 308]]

enlisted members each year under enlistments described in that 
section.''; and
            (3) by striking out subsections (d) and (e).

    (b) <<NOTE: 10 USC 10105 note.>> Service in the Selected Reserve in 
Lieu of Active Duty Service for ROTC Graduates.--Section 1112(b) of such 
Act (106 Stat. 2537) is amended by striking out ``National Guard'' 
before the period at the end and inserting in lieu thereof ``Selected 
Reserve''.

    (c) <<NOTE: 10 USC 10105 note.>> Review of Officer Promotions.--
Section 1113 of such Act (106 Stat. 2537) is amended--
            (1) in subsection (a), by striking out ``National Guard'' 
        both places it appears and inserting in lieu thereof ``Selected 
        Reserve''; and
            (2) by striking out subsection (b) and inserting in lieu 
        thereof the following:

    ``(b) Coverage of Selected Reserve Combat and Early Deploying 
Units.--(1) Subsection (a) applies to officers in all units of the 
Selected Reserve that are designated as combat units or that are 
designated for deployment within 75 days of mobilization.
    ``(2) <<NOTE: Effective date.>> Subsection (a) shall take effect 
with respect to officers of the Army Reserve, and with respect to 
officers of the Army National Guard in units not subject to subsection 
(a) as of the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996, at the end of the 90-day period 
beginning on such date of enactment.''.

    (d) <<NOTE: 10 USC 10105 note.>> Initial Entry Training and 
Nondeployable Personnel.--Section 1115 of such Act (106 Stat. 2538) is 
amended--
            (1) in subsections (a) and (b), by striking out ``National 
        Guard'' each place it appears and inserting in lieu thereof 
        ``Selected Reserve''; and
            (2) in subsection (c)--
                    (A) by striking out ``a member of the Army National 
                Guard enters the National Guard'' and inserting
in lieu thereof ``a member of the Army Selected Reserve enters the Army 
Selected Reserve''; and
                    (B) by striking out ``from the Army National 
                Guard''.

    (e) <<NOTE: 10 USC 10105 note.>> Accounting of Members Who Fail 
Physical Deployability Standards.--Section 1116 of such Act (106 Stat. 
2539) is amended by striking out ``National Guard'' each place it 
appears and inserting in lieu thereof ``Selected Reserve''.

    (f) Use of Combat Simulators.--Section 1120 of such Act (106 Stat. 
2539) is amended by inserting ``and the Army Reserve'' before the period 
at the end.

SEC. 515. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

    (a) <<NOTE: 10 USC 10105 note.>> Associate Units.--Subsection (a) of 
section 1131 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2540) is amended to read as follows:

    ``(a) Associate Units.--The Secretary of the Army shall require--
            ``(1) that each ground combat maneuver brigade of the Army 
        National Guard that (as determined by the Secretary) is 
        essential for the execution of the National Military Strategy be 
        associated with an active-duty combat unit; and
            ``(2) that combat support and combat service support units 
        of the Army Selected Reserve that (as determined by the Sec

[[Page 110 STAT. 309]]

        retary) are essential for the execution of the National Military 
        Strategy be associated with active-duty units.''.

    (b)  Responsibilities.--Subsection  (b)  of  such  section  is 
amended--
            (1) by striking out ``National Guard combat unit'' in the 
        matter preceding paragraph (1) and inserting in lieu thereof 
        ``National Guard unit or Army Selected Reserve unit that (as 
        determined by the Secretary under subsection (a)) is essential 
        for the execution of the National Military Strategy''; and
            (2) by striking out ``of the National Guard unit'' in 
        paragraphs (1), (2), (3), and (4) and inserting in lieu thereof 
        ``of that unit''.
SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS PERFORMING 
                        PUBLIC SAFETY DUTY.

    (a) Election of Leave To Be Charged.--Subsection (b) of section 6323 
of title 5, United States Code, is amended by adding at the end the 
following: ``Upon the request of an employee, the period for which an 
employee is absent to perform service described in paragraph (2) may be 
charged to the employee's accrued annual leave or to compensatory time 
available to the employee instead of being charged as leave to which the 
employee is entitled under this subsection. The period of absence may 
not be charged to sick leave.''.
    (b) Pay for Period of Absence.--Section 5519 of such title is 
amended by striking out ``entitled to leave'' and inserting in lieu 
thereof ``granted military leave''.
SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL GUARD 
                        PARTICIPATION IN JOINT DISASTER AND 
                        EMERGENCY ASSISTANCE EXERCISES.

    Section 503(a) of title 32, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:

    ``(2) Paragraph (1) includes authority to provide for participation 
of the National Guard in conjunction with the Army or the Air Force, or 
both, in joint exercises for instruction to prepare the National Guard 
for response to civil emergencies and disasters.''.

                   Subtitle C--Decorations and Awards

SEC. 521. <<NOTE: 10 USC 1129 note.>>  AWARD OF PURPLE HEART TO 
                        PERSONS WOUNDED WHILE HELD AS PRISONERS OF 
                        WAR BEFORE APRIL 25, 1962.

    (a) Award of Purple Heart.--For purposes of the award of the Purple 
Heart, the Secretary concerned (as defined in section 101 of title 10, 
United States Code) shall treat a former prisoner of war who was wounded 
before April 25, 1962, while held as a prisoner of war (or while being 
taken captive) in the same manner as a former prisoner of war who is 
wounded on or after that date while held as a prisoner of war (or while 
being taken captive).
    (b) Standards for Award.--An award of the Purple Heart under 
subsection (a) shall be made in accordance with the standards in effect 
on the date of the enactment of this Act for the award of the Purple 
Heart to persons wounded on or after April 25, 1962.
    (c) Eligible Former Prisoners of War.--A person shall be considered 
to be a former prisoner of war for purposes of this

[[Page 110 STAT. 310]]

section if the person is eligible for the prisoner-of-war medal under 
section 1128 of title 10, United States Code.
SEC. 522. <<NOTE: 10 USC 1130 note.>>  AUTHORITY TO AWARD 
                        DECORATIONS RECOGNIZING ACTS OF VALOR 
                        PERFORMED IN COMBAT DURING THE VIETNAM 
                        CONFLICT.

    (a) Findings.--Congress makes the following findings:
            (1) The Ia Drang Valley (Pleiku) campaign, carried out by 
        the Armed Forces in the Ia Drang Valley of Vietnam from October 
        23, 1965, to November 26, 1965, is illustrative of the many 
        battles during the Vietnam conflict which pitted forces of the 
        United States against North Vietnamese Army regulars and Viet 
        Cong in vicious fighting.
            (2) Accounts of those battles that have been published since 
        the end of that conflict authoritatively document numerous and 
        repeated acts of extraordinary heroism, sacrifice, and bravery 
        on the part of members of the Armed Forces, many of which have 
        never been officially recognized.
            (3) In some of those battles, United States military units 
        suffered substantial losses, with some units sustaining 
        casualties in excess of 50 percent.
            (4) The incidence of heavy casualties throughout the Vietnam 
        conflict inhibited the timely collection of comprehensive and 
        detailed information to support recommendations for awards 
        recognizing acts of heroism, sacrifice, and bravery.
            (5) Subsequent requests to the Secretaries of the military 
        departments for review of award recommendations for such acts 
        have been denied because of restrictions in law and regulations 
        that require timely filing of such recommendations and 
        documented justification.
            (6) Acts of heroism, sacrifice, and bravery performed in 
        combat by members of the Armed Forces deserve appropriate and 
        timely recognition by the people of the United States.
            (7) It is appropriate to recognize acts of heroism, 
        sacrifice, or bravery that are belatedly, but properly, 
        documented by persons who witnessed those acts.

    (b) Waiver of Time Limitations for Recommendations for Awards.--(1) 
Any decoration covered by paragraph (2) may be awarded, without regard 
to any time limit imposed by law or regulation for a recommendation for 
such award to any person for actions by that person in the Southeast 
Asia theater of operations while serving on active duty during the 
Vietnam era. The waiver of time limitations under this paragraph applies 
only in the case of awards for acts of valor for which a request for 
consideration is submitted under subsection (c).
    (2) Paragraph (1) applies to any decoration (including any device in 
lieu of a decoration) that, during or after the Vietnam era and before 
the date of the enactment of this Act, was authorized by law or under 
regulations of the Department of Defense or the military department 
concerned to be awarded to members of the Armed Forces for acts of 
valor.
    (c) Review of Requests for Consideration of Awards.--(1) The 
Secretary of each military department shall review each request for 
consideration of award of a decoration described in subsection (b) that 
are received by the Secretary during the one-year period beginning on 
the date of enactment of this Act.

[[Page 110 STAT. 311]]

    (2) The Secretaries shall begin the review within 30 days after the 
date of the enactment of this Act and shall complete the review of each 
request for consideration not later than one year after the date on 
which the request is received.
    (3) The Secretary may use the same process for carrying out the 
review as the Secretary uses for reviewing other recommendations for 
award of decorations to members of the Armed Forces under the 
Secretary's jurisdiction for valorous acts.
    (d) Report.--(1) Upon completing the review of each such request 
under subsection (c), the Secretary shall submit a report on the review 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives.
    (2) The report shall include, with respect to each request for 
consideration received, the following information:
            (A) A summary of the request for consideration.
            (B) The findings resulting from the review.
            (C) The final action taken on the request for consideration.

    (e) Definition.--For purposes of this section:
            (1) The term ``Vietnam era'' has the meaning given that term 
        in section 101 of title 38, United States Code.
            (2) The term ``active duty'' has the meaning given that term 
        in section 101 of title 10, United States Code.
SEC. 523.  <<NOTE: 10 USC 1130 note.>> MILITARY INTELLIGENCE 
                        PERSONNEL PREVENTED BY SECRECY FROM BEING 
                        CONSIDERED FOR DECORATIONS AND AWARDS.

    (a) Waiver on Restrictions of Awards.--(1) Any decoration covered by 
paragraph (2) may be awarded, without regard to any time limit imposed 
by law or regulation for a recommendation for such award, to any person 
for an act, achievement, or service that the person performed in 
carrying out military intelligence duties during the period beginning on 
January 1, 1940, and ending on December 31, 1990.
    (2) Paragraph (1) applies to any decoration (including any device in 
lieu of a decoration) that, during or after the period described in 
paragraph (1) and before the date of the enactment of this Act, was 
authorized by law or under the regulations of the Department of Defense 
or the military department concerned to be awarded to a person for an 
act, achievement, or service performed by that person while serving on 
active duty.
    (b) Review of Requests for Consideration of Awards.--(1) The 
Secretary of each military department shall review each request for 
consideration of award of a decoration described in subsection (a) that 
is received by the Secretary during the one-year period beginning on the 
date of the enactment of this Act.
    (2) The Secretaries shall begin the review within 30 days after the 
date of the enactment of this Act and shall complete the review of each 
request for consideration not later than one year after the date on 
which the request is received.
    (3) The Secretary may use the same process for carrying out the 
review as the Secretary uses for reviewing other recommendations for 
awarding decorations to members of the Armed Forces under the 
Secretary's jurisdiction for acts, achievements, or service.
    (c) Report.--(1) Upon completing the review of each such request 
under subsection (b), the Secretary shall submit a report on the review 
to the Committee on Armed Services of the Senate

[[Page 110 STAT. 312]]

and the Committee on National Security of the House of Representatives.
    (2) The report shall include, with respect to each request for 
consideration reviewed, the following information:
            (A) A summary of the request for consideration.
            (B) The findings resulting from the review.
            (C) The final action taken on the request for consideration.
            (D) Administrative or legislative recommendations to improve 
        award procedures with respect to military intelligence 
        personnel.

    (d) Definition.--For purposes of this section, the term ``active 
duty'' has the meaning given such term in section 101 of title 10, 
United States Code.
SEC. 524.  <<NOTE: Records. 10 USC 3741 note.>> REVIEW REGARDING 
                        UPGRADING OF DISTINGUISHED-SERVICE CROSSES 
                        AND NAVY CROSSES AWARDED TO ASIAN-
                        AMERICANS AND NATIVE AMERICAN PACIFIC 
                        ISLANDERS FOR WORLD WAR II SERVICE.

    (a) Review Required.--(1) The Secretary of the Army shall review the 
records relating to each award of the Distinguished-Service Cross, and 
the Secretary of the Navy shall review the records relating to each 
award of the Navy Cross, that was awarded to an Asian-American or a 
Native American Pacific Islander with respect to service as a member of 
the Armed Forces during World War II. The purpose of the review shall be 
to determine whether any such award should be upgraded to the Medal of 
Honor.
    (2) If the Secretary concerned determines, based upon the review 
under paragraph (1), that such an upgrade is appropriate in the case of 
any person, the Secretary shall submit to the President a recommendation 
that the President award the Medal of Honor to that person.
    (b) Waiver of Time Limitations.--A Medal of Honor may be awarded to 
a person referred to in subsection (a) in accordance with a 
recommendation of the Secretary concerned under that subsection without 
regard to--
            (1) section 3744, 6248, or 8744 of title 10, United States 
        Code, as applicable; and
            (2) any regulation or other administrative restriction on--
                    (A) the time for awarding the Medal of Honor; or
                    (B) the awarding of the Medal of Honor for service 
                for which a Distinguished-Service Cross or Navy Cross 
                has been awarded.

    (c) Definition.--For purposes of this section, the term ``Native 
American Pacific Islander'' means a Native Hawaiian and any other Native 
American Pacific Islander within the
meaning of the Native American Programs Act of 1974 (42 U.S.C. 2991 et 
seq.).
SEC. 525.  <<NOTE: 10 USC 1130 note.>> ELIGIBILITY FOR ARMED 
                        FORCES EXPEDITIONARY MEDAL BASED UPON 
                        SERVICE IN EL SALVADOR.

    (a) In General.--For the purpose of determining eligibility of 
members and former members of the Armed Forces for the Armed Forces 
Expeditionary Medal, the country of El Salvador during the period 
beginning on January 1, 1981 and ending on February 1, 1992, shall be 
treated as having been designated as an area and a period of time in 
which members of the Armed Forces participated in operations in 
significant numbers and otherwise met the general requirements for the 
award of that medal.

[[Page 110 STAT. 313]]

    (b) Individual Determination.--The Secretary of the military 
department concerned shall determine whether individual members or 
former members of the Armed Forces who served in El Salvador during the 
period beginning on January 1, 1981 and ending on February 1, 1992 meet 
the individual service requirements for award of the Armed Forces 
Expeditionary Medal as established in applicable regulations. Such 
determinations shall be made as expeditiously as possible after the date 
of the enactment of this Act.
SEC. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS NOT 
                        PREVIOUSLY SUBMITTED IN TIMELY FASHION.

    (a) In General.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1130. Consideration of proposals for decorations not 
                    previously submitted in timely fashion: 
                    procedures for review and recommendation

    ``(a) Upon request of a Member of Congress, the Secretary concerned 
shall review a proposal for the award or presentation of a decoration 
(or the upgrading of a decoration), either for an individual or a unit, 
that is not otherwise authorized to be presented or awarded due to 
limitations established by law or policy for timely submission of a 
recommendation for such award or presentation. Based upon such review, 
the Secretary shall make a determination as to the merits of approving 
the award or presentation of the decoration and the other determinations 
necessary to comply with subsection (b).
    ``(b) Upon making a determination under subsection (a) as to the 
merits of approving the award or presentation of the decoration, the 
Secretary concerned shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives and to the requesting member of Congress notice in 
writing of one of the following:
            ``(1) The award or presentation of the decoration does not 
        warrant approval on the merits.
            ``(2) The award or presentation of the decoration warrants 
        approval and a waiver by law of time restrictions prescribed by 
        law is recommended.
            ``(3) The award or presentation of the decoration warrants 
        approval on the merits and has been approved as an exception to 
        policy.
            ``(4) The award or presentation of the decoration warrants 
        approval on the merits, but a waiver of the time restrictions 
        prescribed by law or policy is not recommended.

A notice under paragraph (1) or (4) shall be accompanied by a statement 
of the reasons for the decision of the Secretary.

    ``(c) Determinations under this section regarding the award or 
presentation of a decoration shall be made in accordance with the same 
procedures that apply to the approval or disapproval of the award or 
presentation of a decoration when a recommendation for such award or 
presentation is submitted in a timely manner as prescribed by law or 
regulation.
    ``(d) In this section:
            ``(1) The term `Member of Congress' means--
                    ``(A) a Senator; or

[[Page 110 STAT. 314]]

                    ``(B) a Representative in, or a Delegate or Resident 
                Commissioner to, Congress.
            ``(2) The term `decoration' means any decoration or award 
        that may be presented or awarded to a member or unit of the 
        armed forces.''.

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

``1130. Consideration of proposals for decorations not previously 
           submitted in timely fashion: procedures for review and 
           recommendation.''.

                 Subtitle D--Officer Education Programs

                        PART I--SERVICE ACADEMIES

SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF THE 
                        SERVICE ACADEMIES.

    (a) Military Academy.--Section 4348(a)(2)(B) of title 10, United 
States Code, is amended by striking out ``six years'' and inserting in 
lieu thereof ``five years''.
    (b) Naval Academy.--Section 6959(a)(2)(B) of such title is amended 
by striking out ``six years'' and inserting in lieu thereof ``five 
years''.
    (c) Air Force Academy.--Section 9348(a)(2)(B) of such title is 
amended by striking out ``six years'' and inserting in lieu thereof 
``five years''.
    (d) Requirement for Review and Report.--(1) The Secretary of Defense 
shall review the effects that each of various periods of obligated 
active duty service for graduates of the United States Military Academy, 
the United States Naval Academy, and the United States Air Force Academy 
would have on the number and quality of the eligible and qualified 
applicants seeking appointment to such academies.
    (2) Not later than April 1, 1996, the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the Secretary's 
findings under the review, together with any recommended legislation 
regarding the minimum periods of obligated active duty service for 
graduates of the United States Military Academy, the United States Naval 
Academy, and the United States Air Force Academy.

    (e) <<NOTE: 10 USC 4348 note.>> Applicability.--The amendments made 
by this section apply to persons first admitted to the United States 
Military Academy, United States Naval Academy, and United States Air 
Force Academy after December 31, 1991.
SEC. 532. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH OF 
                        THE NORTHERN MARIANAS ISLANDS.

    (a) Military Academy.--Section 4342(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following new 
paragraph:
            ``(10) One cadet from the Commonwealth of the Northern 
        Marianas Islands, nominated by the resident representative from 
        the commonwealth.''.

    (b) Naval Academy.--Section 6954(a) of title 10, United States Code, 
is amended by inserting after paragraph (9) the following new paragraph:

[[Page 110 STAT. 315]]

            ``(10) One from the Commonwealth of the Northern Marianas 
        Islands, nominated by the resident representative from the 
        commonwealth.''.

    (c) Air Force Academy.--Section 9342(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following new 
paragraph:
            ``(10) One cadet from the Commonwealth of the Northern 
        Marianas Islands, nominated by the resident representative from 
        the commonwealth.''.
SEC. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND 
                        NONAPPROPRIATED FUND ACCOUNT FOR THE 
                        ATHLETICS PROGRAMS AT THE SERVICE 
                        ACADEMIES.

    (a) United States Military Academy.--(1) Section 4357 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 403 of such 
title is amended by striking out the item relating to section 4357.
    (b) United States Naval Academy.--Section 556 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2774) is amended by striking out subsections (b) and 
(e). <<NOTE: 10 USC 6975, 6975 note.>> 

    (c) United States Air Force Academy.--(1) Section 9356 of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 903 of such 
title is amended by striking out the item relating to section 9356.
SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST PRIVATIZATION 
                        OF SERVICE ACADEMY PREPARATORY SCHOOLS.

    Section 536 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 10 U.S.C. 4331 note) is repealed.

                 PART II--RESERVE OFFICER TRAINING CORPS

SEC. 541. ROTC ACCESS TO CAMPUSES.

    (a) In General.--Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 983. Institutions of higher education that prohibit Senior ROTC 
                        units: denial of Department of Defense grants 
                        and contracts

    ``(a) Denial of Department of Defense Grants and Contracts.--(1) No 
funds appropriated or otherwise available to the Department of Defense 
may be made obligated by contract or by grant (including a grant of 
funds to be available for student aid) to any institution of higher 
education that, as determined by the Secretary of Defense, has an anti-
ROTC policy and at which, as determined by the Secretary, the Secretary 
would otherwise maintain or seek to establish a unit of the Senior 
Reserve Officer Training Corps or at which the Secretary would otherwise 
enroll or seek to enroll students for participation in a unit of the 
Senior Reserve Officer Training Corps at another nearby institution of 
higher education.
    ``(2) In the case of an institution of higher education that is 
ineligible for Department of Defense grants and contracts by reason of 
paragraph (1), the prohibition under that paragraph shall

[[Page 110 STAT. 316]]

cease to apply to that institution upon a determination by the Secretary 
that the institution no longer has an anti-ROTC policy.
    ``(b) Notice of Determination.--Whenever the Secretary makes a 
determination under subsection (a) that an institution has an anti-ROTC 
policy, or that an institution previously determined to have an anti-
ROTC policy no longer has such a policy, the Secretary--
            ``(1) shall transmit notice of that determination to the 
        Secretary of Education and to the Committee on Armed Services of 
        the Senate and the Committee on National Security of the House 
        of Representatives; and
            ``(2) <<NOTE: Federal Register, publication.>> shall publish 
        in the Federal Register notice of that determination and of the 
        effect of that determination under subsection (a)(1) on the 
        eligibility of that institution for Department of Defense grants 
        and contracts.

    ``(c) Semiannual Notice in Federal Register.--The Secretary shall 
publish in the Federal Register once every six months a list of each 
institution of higher education that is currently ineligible for 
Department of Defense grants and contracts by reason of a determination 
of the Secretary under subsection (a).
    ``(d) Anti-ROTC Policy.--In this section, the term `anti-ROTC 
policy' means a policy or practice of an institution of higher education 
that--
            ``(1) prohibits, or in effect prevents, the Secretary of 
        Defense from maintaining or establishing a unit of the Senior 
        Reserve Officer Training Corps at that institution, or
            ``(2) prohibits, or in effect prevents, a student at that 
        institution from enrolling in a unit of the Senior Reserve 
        Officer Training Corps at another institution of higher 
        education.''.

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

``983. Institutions of higher education that prohibit Senior ROTC units: 
           denial of Department of Defense grants and contracts.''.

SEC. 542. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

    (a) Clarification of Restriction on Active Duty.--Paragraph (2) of 
section 2107(h) of title 10, United States Code, is amended by inserting 
``full-time'' before ``active duty'' in the second sentence.
    (b) Redesignation of ROTC Scholarships.--Such paragraph is further 
amended by inserting after the first sentence the following new 
sentence: ``A cadet designated under this paragraph who, having 
initially contracted for service as provided in subsection (b)(5)(A) and 
having received financial assistance for two years under an award 
providing for four years of financial assistance under this section, 
modifies such contract with the consent of the Secretary of the Army to 
provide for service as described in subsection (b)(5)(B), may be 
counted, for the year in which the contract is modified, toward the 
number of appointments required under the preceding sentence for 
financial assistance awarded for a period of four years.''.
SEC. 543. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL 
                        HEADQUARTERS STRUCTURE.

    (a) Delay.--The Secretary of the Army may not take any action to 
reorganize the regional headquarters and basic camp structure of the 
Reserve Officers Training Corps program of the

[[Page 110 STAT. 317]]

Army until six months after the date on which the report required by 
subsection (d) is submitted.
    (b) Cost-Benefit Analysis.--The Secretary of the Army shall conduct 
a comparative cost-benefit analysis of various options for the 
reorganization of the regional headquarters and basic camp structure of 
the Army ROTC program. As part of such analysis, the Secretary shall 
measure each reorganization option considered against a common set of 
criteria.
    (c) Selection of Reorganization Option for Implementation.--Based on 
the findings resulting from the cost-benefit analysis under subsection 
(b) and such other factors as the Secretary considers appropriate, the 
Secretary shall select one reorganization option for implementation. The 
Secretary may select an option for implementation only if the Secretary 
finds that the cost-benefit analysis and other factors considered 
clearly demonstrate that such option, better than any other option 
considered--
            (1) provides the structure to meet projected mission 
        requirements;
            (2) achieves the most significant personnel and cost 
        savings;
            (3) uses existing basic and advanced camp facilities to the 
        maximum extent possible;
            (4) minimizes additional military construction costs; and
            (5) makes maximum use of the reserve components to support 
        basic and advanced camp operations, thereby minimizing the 
        effect of those operations on active duty units.

    (d) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives a report describing the reorganization 
option selected under subsection (c). The report shall include the 
results of the cost-benefit analysis under subsection (b) and a detailed 
rationale for the reorganization option selected.
SEC. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE REQUIRED 
                        UNDER THE SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS PROGRAM.

    Section 2104(b)(6)(A)(ii) of title 10, United States Code, is 
amended by striking out ``not less than six weeks' duration'' and 
inserting in lieu thereof ``a duration''.
SEC. 545. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SENIOR 
                        MILITARY COLLEGES TO SERVE AS COMMANDANT 
                        AND ASSISTANT COMMANDANT OF CADETS AND AS 
                        TACTICAL OFFICERS.

    (a) In General.--Chapter 103 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2111a. Detail of officers to senior military colleges

    ``(a) Detail of Officers To Serve as Commandant or Assistant 
Commandant of Cadets.--(1) Upon the request of a senior military 
college, the Secretary of Defense may detail an officer on the active-
duty list to serve as Commandant of Cadets at that college or (in the 
case of a college with an Assistant Commandant of Cadets) detail an 
officer on the active-duty list to serve as Assistant Commandant of 
Cadets at that college (but not both).
    ``(2) In the case of an officer detailed as Commandant of Cadets, 
the officer may, upon the request of the college, be assigned from

[[Page 110 STAT. 318]]

among the Professor of Military Science, the Professor of Naval Science 
(if any), and the Professor of Aerospace Science (if any) at that 
college or may be in addition to any other officer detailed to that 
college in support of the program.
    ``(3) In the case of an officer detailed as Assistant Commandant of 
Cadets, the officer may, upon the request of the college, be assigned 
from among officers otherwise detailed to duty at that college in 
support of the program or may be in addition to any other officer 
detailed to that college in support of the program.
    ``(b) Designation of Officers as Tactical Officers.--Upon the 
request of a senior military college, the Secretary of Defense may 
authorize officers (other than officers covered by subsection (a)) who 
are detailed to duty as instructors at that college to act 
simultaneously as tactical officers (with or without compensation) for 
the Corps of Cadets at that college.
    ``(c) Detail of Officers.--The Secretary of a military department 
shall designate officers for detail to the program at a senior military 
college in accordance with criteria provided by the college. An officer 
may not be detailed to a senior military college without the approval of 
that college.
    ``(d) Senior Military Colleges.--The senior military colleges are 
the following:
            ``(1) Texas A&M University.
            ``(2) Norwich College.
            ``(3) The Virginia Military Institute.
            ``(4) The Citadel.
            ``(5) Virginia Polytechnic Institute and State University.
            ``(6) North Georgia College.''.

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

``2111a. Detail of officers to senior military colleges.''.

         Subtitle E--Miscellaneous Reviews, Studies, and Reports

SEC. 551.  <<NOTE: 10 USC 113 note.>> REPORT CONCERNING 
                        APPROPRIATE FORUM FOR JUDICIAL REVIEW OF 
                        DEPARTMENT OF DEFENSE PERSONNEL ACTIONS.

    (a) Establishment.--The Secretary of Defense shall establish an 
advisory committee to consider issues relating to the appropriate forum 
for judicial review of Department of Defense administrative personnel 
actions.
    (b) Membership.--(1) The committee shall be composed of five 
members, who shall be appointed by the Secretary of Defense after 
consultation with the Attorney General and the Chief Justice of the 
United States.
    (2) All members of the committee shall be appointed not later than 
30 days after the date of the enactment of this Act.
    (c) Duties.--The committee shall review, and provide findings and 
recommendations regarding, the following matters with respect to 
judicial review of administrative personnel actions of the Department of 
Defense:

[[Page 110 STAT. 319]]

            (1) Whether the existing forum for such review through the 
        United States district courts provides appropriate and adequate 
        review of such actions.
            (2) Whether jurisdiction to conduct judicial review of such 
        actions should be established in a single court in order to 
        provide a centralized review of such actions and, if so, in 
        which court that jurisdiction should be vested.

    (d) Report.--(1) Not later than December 15, 1996, the committee 
shall submit to the Secretary of Defense a report setting forth its 
findings and recommendations, including its recommendations pursuant to 
subsection (c).
    (2) Not later than January 1, 1997, the Secretary of Defense, after 
consultation with the Attorney General, shall transmit the committee's 
report to Congress. The Secretary may include in the transmittal any 
comments on the report that the Secretary or the Attorney General 
consider appropriate.
    (e) Termination of Committee.--The committee shall terminate 30 days 
after the date of the submission of its report to Congress under 
subsection (d)(2).
SEC. 552.  <<NOTE: 10 USC 115 note.>> COMPTROLLER GENERAL REVIEW 
                        OF PROPOSED ARMY END STRENGTH ALLOCATIONS.

    (a) In General.--During fiscal years 1996 through 2001, the 
Comptroller General of the United States shall analyze the plans of the 
Secretary of the Army for the allocation of assigned active component 
end strengths for the Army through the requirements process known as 
Total Army Analysis 2003 and through any subsequent similar requirements 
process of the Army that is conducted before 2002. The Comptroller 
General's analysis shall consider whether the proposed active component 
end strengths and planned allocation of forces for that period will be 
sufficient to implement the national military strategy. In monitoring 
those plans, the Comptroller General shall determine the extent to which 
the Army will be able during that period--
            (1) to man fully the combat force based on the projected 
        active component Army end strength for each of fiscal years 1996 
        through 2001;
            (2) to meet the support requirements for the force and 
        strategy specified in the report of the Bottom-Up Review, 
        including requirements for operations other than war; and
            (3) to streamline further Army infrastructure in order to 
        eliminate duplication and inefficiencies and replace active duty 
        personnel in overhead positions, whenever practicable, with 
        civilian or reserve personnel.

    (b) Access to Documents, Etc.--The Secretary of the Army shall 
ensure that the Comptroller General is provided access, on a timely 
basis and in accordance with the needs of the Comptroller General, to 
all analyses, models, memoranda, reports, and other documents prepared 
or used in connection with the requirements process of the Army known as 
Total Army Analysis 2003 and any subsequent similar requirements process 
of the Army that is conducted before 2002.
    (c) Annual Report.--Not later than March 1 of each year through 
2002, the Comptroller General shall submit to Congress a report on the 
findings and conclusions of the Comptroller General under this section.

[[Page 110 STAT. 320]]

SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE SUPPORT 
                        UNITS.

    (a) Report.--Not later than September 30, 1996, 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 units of the Armed Forces under the Secretary's 
jurisdiction--
            (1) that (as determined by the Secretary of the military 
        department concerned) are high-priority support units that would 
        deploy early in a contingency operation or other crisis; and
            (2) that are, as a matter of policy, managed at less than 
        100 percent of their authorized strengths.

    (b) Matters To Be Included.--The Secretary shall include in the 
report--
            (1) the number of such high-priority support units (shown by 
        type of unit) that are so managed;
            (2) the level of manning within such high-priority support 
        units; and
            (3) with respect to each such unit, either the justification 
        for manning of less than 100 percent or the status of corrective 
        action.
SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY RECORDS.

    (a) Review of Procedures.--The Secretary of Defense shall review the 
system and procedures for the correction of military records used by the 
Secretaries of the military departments in the exercise of authority 
under section 1552 of title 10, United States Code, in order to identify 
potential improvements that could be made in the process for correcting 
military records to ensure fairness, equity, and (consistent with 
appropriate service to applicants) maximum efficiency. The Secretary may 
not delegate responsibility for the review to an officer or official of 
a military department.
    (b) Issues Reviewed.--In conducting the review, the Secretary shall 
consider (with respect to each Board for the Correction of Military 
Records) the following:
            (1) The composition of the board and of the support staff 
        for the board.
            (2) Timeliness of final action.
            (3) Independence of deliberations by the civilian board.
            (4) The authority of the Secretary of the military 
        department concerned to modify the recommendations of the board.
            (5) Burden of proof and other evidentiary standards.
            (6) Alternative methods for correcting military records.
            (7) Whether the board should be consolidated with the 
        Discharge Review Board of the military department.

    (c) Report.--Not later than April 1, 1996, the Secretary of Defense 
shall submit a report on the results of the Secretary's review under 
this section to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. The 
report shall contain the recommendations of the Secretary for improving 
the process for correcting military records in order to achieve the 
objectives referred to in subsection (a).

[[Page 110 STAT. 321]]

SEC. 555. REPORT ON THE CONSISTENCY OF REPORTING OF FINGERPRINT 
                        CARDS AND FINAL DISPOSITION FORMS TO THE 
                        FEDERAL BUREAU OF INVESTIGATION.

    (a) Report.--The Secretary of Defense shall submit to Congress a 
report on the consistency with which fingerprint cards and final 
disposition forms, as described in Criminal Investigations Policy 
Memorandum 10 issued by the Defense Inspector General on March 25, 1987, 
are reported by the Defense Criminal Investigative Organizations to the 
Federal Bureau of Investigation for inclusion in the Bureau's criminal 
history identification files. The report shall be prepared in 
consultation with the Director of the Federal Bureau of Investigation.
    (b) Matters To Be Included.--In the report, the Secretary shall--
            (1) survey fingerprint cards and final disposition forms 
        filled out in the past 24 months by each investigative 
        organization;
            (2) compare the fingerprint cards and final disposition 
        forms filled out to all judicial and nonjudicial procedures 
        initiated as a result of actions taken by each investigative 
        service in the past 24 months;
            (3) account for any discrepancies between the forms filled 
        out and the judicial and nonjudicial procedures initiated;
            (4) compare the fingerprint cards and final disposition 
        forms filled out with the information held by the Federal Bureau 
        of Investigation criminal history identification files;
            (5) identify any weaknesses in the collection of fingerprint 
        cards and final disposition forms and in the reporting of that 
        information to the Federal Bureau of Investigation; and
            (6) determine whether or not other law enforcement 
        activities of the military services collect and report such 
        information or, if not, should collect and report such 
        information.

    (c) Submission of Report.--The report shall be submitted not later 
than one year after the date of the enactment of this Act.
    (d) Definition.--For the purposes of this section, the term 
``criminal history identification files'', with respect to the Federal 
Bureau of Investigation, means the criminal history record system 
maintained by the Federal Bureau of Investigation based on fingerprint 
identification and any other method of positive identification.

                        Subtitle F--Other Matters

SEC. 561. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFICERS 
                        AND ENLISTED MEMBERS.

    (a) Enlisted Service Credit.--Section 972 of title 10, United States 
Code, is amended--
            (1) by inserting ``(a) Enlisted Members Required To Make Up 
        Time Lost.--'' before ``An enlisted member'';
            (2) by striking out paragraphs (3) and (4) and inserting in 
        lieu thereof the following:
            ``(3) is confined by military or civilian authorities for 
        more than one day in connection with a trial, whether before, 
        during, or after the trial; or''; and
            (3) by redesignating paragraph (5) as paragraph (4).

[[Page 110 STAT. 322]]

    (b) Officer Service Credit.--Such section is further amended by 
adding at the end the following:
    ``(b) Officers Not Allowed Service Credit for Time Lost.--In the 
case of an officer of an armed force who after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 1996--
            ``(1) deserts;
            ``(2) is absent from his organization, station, or duty for 
        more than one day without proper authority, as determined by 
        competent authority;
            ``(3) is confined by military or civilian authorities for 
        more than one day in connection with a trial, whether before, 
        during, or after the trial; or
            ``(4) is unable for more than one day, as determined by 
        competent authority, to perform his duties because of 
        intemperate use of drugs or alcoholic liquor, or because of 
        disease or injury resulting from his misconduct;

the period of such desertion, absence, confinement, or inability to 
perform duties may not be counted in computing, for any purpose other 
than basic pay under section 205 of title 37, the officer's length of 
service.''.
    (c) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 972. Members: effect of time lost

    (2) The item relating to section 972 in the table of sections at the 
beginning of chapter 49 of such title is amended to read as follows:

``972. Members: effect of time lost.''.

    (d) Conforming Amendments.--(1) <<NOTE: 10 USC 1405.>> Section 
1405(c) is amended--
            (A) by striking out ``Made Up.--Time'' and inserting in lieu 
        thereof ``Made Up or Excluded.--(1) Time'';
            (B) by striking out ``section 972'' and inserting in lieu 
        thereof ``section 972(a)'';
            (C) by inserting after ``of this title'' the following: ``, 
        or required to be made up by an enlisted member of the Navy, 
        Marine Corps, or Coast Guard under that section with respect to 
        a period of time after the date of the enactment of the National 
        Defense Authorization Act for Fiscal Year 1995,''; and
            (D) by adding at the end the following:

    ``(2) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (2) Chapter 367 of such title is amended--
            (A) in section 3925(b), by striking out ``section 972'' and 
        inserting in lieu thereof ``section 972(a)''; and
            (B) by adding at the end of section 3926 the following new 
        subsection:

    ``(e) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (3)(A) Chapter 571 of such title is amended by inserting after 
section 6327 the following new section:

[[Page 110 STAT. 323]]

``Sec. 6328. Computation of years of service: voluntary retirement

    ``(a) Enlisted Members.--Time required to be made up under section 
972(a) of this title after the date of the enactment of this section may 
not be counted in computing years of service under this chapter.
    ``(b) Officers.--Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of this 
chapter any time identified with respect to that officer under that 
section.''.

    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6327 the 
following new item:

``6328. Computation of years of service: voluntary retirement.''.

    (4) Chapter 867 of such title is amended--
            (A) in section 8925(b), by striking out ``section 972'' and 
        inserting in lieu thereof ``section 972(a)''; and
            (B) by adding at the end of section 8926 the following new 
        subsection:

    ``(d) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (e) <<NOTE: 10 USC 972 note.>> Effective Date and Applicability.--
The amendments made by this section shall take effect on the date of the 
enactment of this Act and shall apply to any period of time covered by 
section 972 of title 10, United States Code, that occurs after that 
date.

SEC. 562. ARMY RANGER TRAINING.

    (a) In General.--(1) Chapter 401 of title 10, United States Code, is 
amended by inserting after section 4302 the following new section:

``Sec. 4303. Army Ranger training: instructor staffing; safety

    ``(a) Levels of Personnel Assigned.--(1) The Secretary of the Army 
shall ensure that at all times the number of officers, and the number of 
enlisted members, permanently assigned to the Ranger Training Brigade 
(or other organizational element of the Army primarily responsible for 
Ranger student training) are not less than 90 percent of the required 
manning spaces for officers, and for enlisted members, respectively, for 
that brigade.
    ``(2) In this subsection, the term `required manning spaces' means 
the number of personnel spaces for officers, and the number of personnel 
spaces for enlisted members, that are designated in Army authorization 
documents as the number required to accomplish the missions of a 
particular unit or organization.
    ``(b) Training Safety Cells.--(1) The Secretary of the Army shall 
establish and maintain an organizational entity known as a `safety cell' 
as part of the organizational elements of the Army responsible for 
conducting each of the three major phases of the Ranger Course. The 
safety cell in each different geographic area of Ranger Course training 
shall be comprised of personnel who have sufficient continuity and 
experience in that geographic area of such training to be knowledgeable 
of the local conditions year-round, including conditions of terrain, 
weather, water, and climate and other conditions and the potential 
effect on those conditions on Ranger student training and safety.
    ``(2) Members of each safety cell shall be assigned in sufficient 
numbers to serve as advisers to the officers in charge of the major

[[Page 110 STAT. 324]]

phase of Ranger training and shall assist those officers in making 
informed daily `go' and `no-go' decisions regarding training in light of 
all relevant conditions, including conditions of terrain, weather, 
water, and climate and other conditions.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4302 the 
following new item:

``4303. Army Ranger training: instructor staffing; safety.''.

    (b) <<NOTE: 10 USC 4303 note.>> Accomplishment of Required Manning 
Levels.--(1) If, as of the date of the enactment of this Act, the number 
of officers, and the number of enlisted members, permanently assigned to 
the Army Ranger Training Brigade are not each at (or above) the 
requirement specified in subsection (a) of section 4303 of title 10, 
United States Code, as added by subsection (a), the Secretary of the 
Army shall--
            (A) take such steps as necessary to accomplish that 
        requirement within 12 months after such date of enactment; and
            (B) submit to Congress, not later than 90 days after such 
        date of enactment, a plan to achieve and maintain that 
        requirement.

    (2) The requirement specified in subsection (a) of section 4303 of 
title 10, United States Code, as added by subsection (a), shall expire 
two years after the date (on or after the date of the enactment of this 
Act) on which the required manning levels referred to in paragraph (1) 
are first attained.
    (c) <<NOTE: Reports.>> GAO Assessment.--(1) Not later than one year 
after the date of the enactment of this Act, the Comptroller General 
shall submit to Congress a report providing a preliminary assessment of 
the implementation and effectiveness of all corrective actions taken by 
the Army as a result of the February 1995 accident at the Florida Ranger 
Training Camp, including an evaluation of the implementation of the 
required manning levels established by subsection (a) of section 4303 of 
title 10, United States Code, as added by subsection (a).

    (2) At the end of the two-year period specified in subsection 
(b)(2), the Comptroller General shall submit to Congress a report 
providing a final assessment of the matters covered in the preliminary 
report under paragraph (1). The report shall include the Comptroller 
General's recommendation as to the need to continue required statutory 
manning levels as specified in subsection (a) of section 4303 of title 
10, United States Code, as added by subsection (a).
    (d) Sense of Congress.--In light of requirement that particularly 
dangerous training activities (such as Ranger training, Search, Evasion, 
Rescue, and Escape (SERE) training, SEAL training, and Airborne 
training) must be adequately manned and resourced to ensure safety and 
effective oversight, it is the sense of Congress--
            (1) that the Secretary of Defense, in conjunction with the 
        Secretaries of the military departments, should review and, if 
        necessary, enhance oversight of all such training activities; 
        and
            (2) that organizations similar to the safety cells required 
        to be established for Army Ranger training in section 4303 of 
        title 10, United States Code, as added by subsection (a), should 
        (when appropriate) be used for all such training activities.

[[Page 110 STAT. 325]]

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

    (a) Separation.--(1)(A) Chapter 59 of title 10, United States Code, 
is amended by inserting after section 1166 the following new section:
``Sec. 1167. Members under confinement by sentence of court-
                    martial: separation after six months 
                    confinement

    ``Except as otherwise provided in regulations prescribed by the 
Secretary of Defense, a member sentenced by a court-martial to a period 
of confinement for more than six months may be separated from the 
member's armed force at any time after the sentence to confinement has 
become final under chapter 47 of this title and the person has served in 
confinement for a period of six months.''.
    (B) The table of sections at the beginning of chapter 59 of such 
title is amended by inserting after the item relating to section 1166 
the following new item:

``1167. Members under confinement by sentence of court-martial: 
           separation after six months confinement.''.

    (2)(A) Chapter 1221 of title 10, United States Code, is amended by 
adding at the end the following:
``Sec. 12687. Reserves under confinement by sentence of court-
                      martial: separation after six months 
                      confinement

    ``Except as otherwise provided in regulations prescribed by the 
Secretary of Defense, a Reserve sentenced by a court-martial to a period 
of confinement for more than six months may be separated from that 
Reserve's armed force at any time after the sentence to confinement has 
become final under chapter 47 of this title and the Reserve has served 
in confinement for a period of six months.''.
    (B) The table of sections at the beginning of chapter 1221 of such 
title is amended by inserting at the end thereof the following new item:

``12687. Reserves under confinement by sentence of court-martial: 
           separation after six months confinement.''.

    (b) Drop From Rolls.--(1) Section 1161(b) of title 10, United States 
Code, is amended by striking out ``or (2)'' and inserting in lieu 
thereof ``(2) who may be separated under section 1178 of this title by 
reason of a sentence to confinement adjudged by a court-martial, or 
(3)''.
    (2) Section 12684 of such title is amended--
            (A) by striking out ``or'' at the end of paragraph (1);
            (B) by redesignating paragraph (2) as paragraph (3); and
            (C) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) who may be separated under section 12687 of this title 
        by reason of a sentence to confinement adjudged by a court-
        martial; or''.

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by inserting after section 129b the following new section:

[[Page 110 STAT. 326]]

``Sec. 129c. Medical personnel: limitations on reductions

    ``(a) Limitation on Reduction.--For any fiscal year, the Secretary 
of Defense may not make a reduction in the number of medical personnel 
of the Department of Defense described in subsection (b) unless the 
Secretary makes a certification for that fiscal year described in 
subsection (c).
    ``(b) Covered Reductions.--Subsection (a) applies to a reduction in 
the number of medical personnel of the Department of Defense as of the 
end of a fiscal year to a number that is less than--
            ``(1) 95 percent of the number of such personnel at the end 
        of the immediately preceding fiscal year; or
            ``(2) 90 percent of the number of such personnel at the end 
        of the third fiscal year preceding the fiscal year.

    ``(c) Certification.--A certification referred to in subsection (a) 
with respect to reductions in medical personnel of the Department of 
Defense for any fiscal year is a certification by the Secretary of 
Defense to Congress that--
            ``(1) the number of medical personnel being reduced is 
        excess to the current and projected needs of the Department of 
        Defense; and
            ``(2) such reduction will not result in an increase in the 
        cost of health care services provided under the Civilian Health 
        and Medical Program of the Uniformed Services under chapter 55 
        of this title.

    ``(d) Policy for Implementing Reductions.--Whenever the Secretary of 
Defense directs that there be a reduction in the total number of 
military medical personnel of the Department of Defense, the Secretary 
shall require that the reduction be carried out so as to ensure that the 
reduction is not exclusively or disproportionately borne by any one of 
the armed forces and is not exclusively or disproportionately borne by 
either the active or the reserve components.
    ``(e) Definition.--In this section, the term `medical personnel' 
means--
            ``(1) the members of the armed forces covered by the term 
        `medical personnel' as defined in section 115a(g)(2) of this 
        title; and
            ``(2) the civilian personnel of the Department of Defense 
        assigned to military medical facilities.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 129b the 
following new item:

``129c. Medical personnel: limitations on reductions.''.

    (b) <<NOTE: 10 USC 129c note.>> Special Transition Rule for Fiscal 
Year 1996.--For purposes of applying subsection (b)(1) of section 129c 
of title 10, United States Code, as added by subsection (a), during 
fiscal year 1996, the number against which the percentage limitation of 
95 percent is computed shall be the number of medical personnel of the 
Department of Defense as of the end of fiscal year 1994 (rather than the 
number as of the end of fiscal year 1995).

    (c) Report on Planned Reductions.--(1) Not later than March 1, 1996, 
the Secretary of Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a plan for the reduction

[[Page 110 STAT. 327]]

of the number of medical personnel of the Department of Defense over the 
five-year period beginning on October 1, 1996.
    (2) The Secretary shall prepare the plan through the Assistant 
Secretary of Defense having responsibility for health affairs, who shall 
consult in the preparation of the plan with the Surgeon General of the 
Army, the Surgeon General of the Navy, and the Surgeon General of the 
Air Force.
    (3) For purposes of this subsection, the term ``medical personnel of 
the Department of Defense'' shall have the meaning given the term 
``medical personnel'' in section 129c(e) of title 10, United States 
Code, as added by subsection (a).
    (d) Repeal of Superseded Provisions of Law.--The following 
provisions of law are repealed:
            (1) Section 711 of the National Defense Authorization Act 
        for Fiscal Year 1991 (10 U.S.C. 115 note).
            (2) Subsection (b) of section 718 of the National Defense 
        Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
        102-190; 10 U.S.C. 115 note).
            (3) Section 518 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 12001 note).
SEC. 565. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

    (a) Findings.--Congress makes the following findings:
            (1) Excessively high personnel tempo rates for members of 
        the Armed Forces resulting from high-tempo unit operations 
        degrades unit readiness and morale and eventually can be 
        expected to adversely affect unit retention.
            (2) The Armed Forces have begun to develop methods to 
        measure and manage personnel tempo rates.
            (3) The Armed Forces have attempted to reduce operations and 
        personnel tempo for heavily tasked units by employing 
        alternative capabilities and reducing tasking requirements.

    (b) Sense of Congress.--The Secretary of Defense should continue to 
enhance the knowledge within the Armed Forces of personnel tempo and to 
improve the techniques by which personnel tempo is defined and managed 
with a view toward establishing and achieving reasonable personnel tempo 
standards for all personnel, regardless of service, unit, or assignment.
SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR OFFICERS 
                        OF COMMISSIONED CORPS OF NATIONAL OCEANIC 
                        AND ATMOSPHERIC ADMINISTRATION.

    (a) Separation Benefits.--Subsection (a) of section 3 of the Act of 
August 10, 1956 (33 U.S.C. 857a), is amended by adding at the end the 
following new paragraph:
            ``(15) Section 1174a, special separation benefits (except 
        that benefits under subsection (b)(2)(B) of such section are 
        subject to the availability of appropriations for such purpose 
        and are provided at the discretion of the Secretary of 
        Commerce).''.

    (b) Technical Corrections.--Such section is further

amended--
            (1) by striking out ``Coast and Geodetic Survey'' in 
        subsections (a) and (b) and inserting in lieu thereof 
        ``commissioned officer corps of the National Oceanic and 
        Atmospheric Administration''; and

[[Page 110 STAT. 328]]

            (2) in subsection (a), by striking out ``including changes 
        in those rules made after the effective date of this Act'' in 
        the matter preceding paragraph (1) and inserting in lieu thereof 
        ``as those provisions are in effect from time to time''.

    (c) <<NOTE: 10 USC 1293 note.>> Temporary Early Retirement 
Authority.--Section 4403 (other than subsection (f)) of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 
Stat. 2702; 10 U.S.C. 1293 note) shall apply to the commissioned officer 
corps of the National Oceanic and Atmospheric Administration in the same 
manner and to the same extent as that section applies to the Department 
of Defense. The Secretary of Commerce shall implement the provisions of 
that section with respect to such commissioned officer corps and shall 
apply the provisions of that section to the provisions of the Coast and 
Geodetic Survey Commissioned Officers' Act of 1948 relating to the 
retirement of members of such commissioned officer corps.

    (d) <<NOTE: 33 USC 857a note.>> Effective Date.--This section shall 
apply only to members of the commissioned officer corps of the National 
Oceanic and Atmospheric Administration who are separated after September 
30, 1995.
SEC. 567. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE THE 
                        HIV-1 VIRUS.

    (a) In General.--(1) Section 1177 of title 10, United States Code, 
is amended to read as follows:
``Sec. 1177. Members infected with HIV-1 virus: mandatory 
                    discharge or retirement

    ``(a) Mandatory Separation.--A member of the armed forces who is 
HIV-positive shall be separated. Such separation shall be made on a date 
determined by the Secretary concerned, which shall be as soon as 
practicable after the date on which the determination is made that the 
member is HIV-positive and not later than the last day of the sixth 
month beginning after such date.
    ``(b) Form of Separation.--If a member to be separated under this 
section is eligible to retire under any provision of law or to be 
transferred to the Fleet Reserve or Fleet Marine Corps Reserve, the 
member shall be so retired or so transferred. Otherwise, the member 
shall be discharged. The characterization of the service of the member 
shall be determined without regard to the determination that the member 
is HIV-positive.
    ``(c) Deferral of Separation for Members in 18-Year Retirement 
Sanctuary.--In the case of a member to be discharged under this section 
who on the date on which the member is to be discharged is within two 
years of qualifying for retirement under any provision of law, or of 
qualifying for transfer to the Fleet Reserve or Fleet Marine Corps 
Reserve under section 6330 of this title, the member may, as determined 
by the Secretary concerned, be retained on active duty until the member 
is qualified for retirement or transfer to the Fleet Reserve or Fleet 
Marine Corps Reserve, as the case may be, and then be so retired or 
transferred, unless the member is sooner retired or discharged under any 
other provision of law.
    ``(d) Separation To Be Considered Involuntary.--A separation under 
this section shall be considered to be an involuntary separation for 
purposes of any other provision of law.

[[Page 110 STAT. 329]]

    ``(e) Entitlement to Health Care.--A member separated under this 
section shall be entitled to medical and dental care under chapter 55 of 
this title to the same extent and under the same conditions as a person 
who is entitled to such care under section 1074(b) of this title.
    ``(f) Counseling About Available Medical Care.--A member to be 
separated under this section shall be provided information, in writing, 
before such separation of the available medical care (through the 
Department of Veterans Affairs and otherwise) to treat the member's 
condition. Such information shall include identification of specific 
medical locations near the member's home of record or point of discharge 
at which the member may seek necessary medical care.
    ``(g) HIV-Positive Members.--A member shall be considered to be HIV-
positive for purposes of this section if there is serologic evidence 
that the member is infected with the virus known as Human 
Immunodeficiency Virus-1 (HIV-1), the virus most commonly associated 
with the acquired immune deficiency syndrome (AIDS) in the United 
States. Such serologic evidence shall be considered to exist if there is 
a reactive result given by an enzyme-linked immunosorbent assay (ELISA) 
serologic test that is confirmed by a reactive and diagnostic 
immunoelectrophoresis test (Western blot) on two separate samples. Any 
such serologic test must be one that is approved by the Food and Drug

Administration.''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 59 of such title is amended to read as follows:

``1177. Members infected with HIV-1 virus: mandatory discharge or 
           retirement.''.

    (b) <<NOTE: 10 USC 1177 note.>> Effective Date.--Section 1177 of 
title 10, United States Code, as amended by subsection (a), applies with 
respect to members of the Armed Forces determined to be HIV-positive 
before, on, or after the date of the enactment of this Act. In the case 
of a member of the Armed Forces determined to be HIV-positive before 
such date, the deadline for separation of the member under subsection 
(a) of such section, as so amended, shall be determined from the date of 
the enactment of this Act (rather than from the date of such 
determination).
SEC. 568. REVISION AND CODIFICATION OF MILITARY FAMILY ACT AND 
                        MILITARY CHILD CARE ACT.

    (a) In General.--(1) Subtitle A of title 10, United States Code, is 
amended by inserting after chapter 87 the following new chapter:

     ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

``Subchapter                                                        Sec.
             Military Family Programs                               1781
             Military Child Care                                    1791

                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS

``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.

[[Page 110 STAT. 330]]

``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.

``Sec. 1781. Office of Family Policy

    ``(a) Establishment.--There is in the Office of the Secretary of 
Defense an Office of Family Policy (hereinafter in this section referred 
to as the `Office'). The Office shall be under the Assistant Secretary 
of Defense for Force Management and Personnel.
    ``(b) Duties.--The Office--
            ``(1) shall coordinate programs and activities of the 
        military departments to the extent that they relate to military 
        families; and
            ``(2) shall make recommendations to the Secretaries of the 
        military departments with respect to programs and policies 
        regarding military families.

    ``(c) Staff.--The Office shall have not less than five professional 
staff members.

``Sec. 1782. Surveys of military families

    ``(a) Authority.--The Secretary of Defense may conduct surveys of 
members of the armed forces on active duty or in an active status, 
members of the families of such members, and retired members of the 
armed forces to determine the effectiveness of Federal programs relating 
to military families and the need for new programs.
    ``(b) Responses To Be Voluntary.--Responses to surveys conducted 
under this section shall be voluntary.
    ``(c) Federal Recordkeeping Requirements.--With respect to such 
surveys, family members of members of the armed forces and reserve and 
retired members of the armed forces shall be considered to be employees 
of the United States for purposes of section 3502(3)(A)(i) of title 44.

``Sec. 1783. Family members serving on advisory committees

    ``A committee within the Department of Defense which advises or 
assists the Department in the performance of any function which affects 
members of military families and which includes members of military 
families in its membership shall not be considered an advisory committee 
under section 3(2) of the Federal Advisory Committee Act (5 U.S.C. App.) 
solely because of such membership.

``Sec. 1784. Employment opportunities for military spouses

    ``(a) <<NOTE: President.>> Authority.--The President shall order 
such measures as the President considers necessary to increase 
employment opportunities for spouses of members of the armed forces. 
Such measures may include--
            ``(1) excepting, pursuant to section 3302 of title 5, from 
        the competitive service positions in the Department of Defense 
        located outside of the United States to provide employment 
        opportunities for qualified spouses of members of the armed 
        forces in the same geographical area as the permanent duty 
        station of the members; and
            ``(2) providing preference in hiring for positions in 
        nonappropriated fund activities to qualified spouses of members 
        of the armed forces stationed in the same geographical area as 
        the nonappropriated fund activity for positions in wage grade 
        UA-8 and below and equivalent positions and for positions paid 
        at hourly rates.

[[Page 110 STAT. 331]]

    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations--
            ``(1) to implement such measures as the President orders 
        under subsection (a);
            ``(2) to provide preference to qualified spouses of members 
        of the armed forces in hiring for any civilian position in the 
        Department of Defense if the spouse is among persons determined 
        to be best qualified for the position and if the position is 
        located in the same geographical area as the permanent duty 
        station of the member;
            ``(3) to ensure that notice of any vacant position in the 
        Department of Defense is provided in a manner reasonably 
        designed to reach spouses of members of the armed forces whose 
        permanent duty stations are in the same geographic area as the 
        area in which the position is located; and
            ``(4) to ensure that the spouse of a member of the armed 
        forces who applies for a vacant position in the Department of 
        Defense shall, to the extent practicable, be considered for any 
        such position located in the same geographic area as the 
        permanent duty station of the member.

    ``(c) Status of Preference Eligibles.--Nothing in this section shall 
be construed to provide a spouse of a member of the armed forces with 
preference in hiring over an individual who is a preference eligible.

``Sec. 1785. Youth sponsorship program

    ``(a) Requirement.--The Secretary of Defense shall require that 
there be at each military installation a youth sponsorship program to 
facilitate the integration of dependent children of members of the armed 
forces into new surroundings when moving to that military installation 
as a result of a parent's permanent change of station.
    ``(b) Description of Programs.--The program at each installation 
shall provide for involvement of dependent children of members presently 
stationed at the military installation and shall be directed primarily 
toward children in their preteen and teenage years.

``Sec. 1786. Dependent student travel within the United States

    ``Funds available to the Department of Defense for the travel and 
transportation of dependent students of members of the armed forces 
stationed overseas may be obligated for transportation allowances for 
travel within or between the contiguous States.

``Sec. 1787. Reporting of child abuse

    ``(a) In General.--The Secretary of Defense shall request each State 
to provide for the reporting to the Secretary of any report the State 
receives of known or suspected instances of child abuse and neglect in 
which the person having care of the child is a member of the armed 
forces (or the spouse of the member).
    ``(b) Definition.--In this section, the term `child abuse and 
neglect' has the meaning provided in section 3(1) of the Child Abuse 
Prevention and Treatment Act (42 U.S.C. 5102).

                  ``SUBCHAPTER II--MILITARY CHILD CARE

``Sec.
``1791. Funding for military child care.
``1792. Child care employees.

[[Page 110 STAT. 332]]

``1793. Parent fees.
``1794. Child abuse prevention and safety at facilities.
``1795. Parent partnerships with child development centers.
``1796. Subsidies for family home day care.
``1797. Early childhood education program.
``1798. Definitions.

``Sec. 1791. Funding for military child care

    ``It is the policy of Congress that the amount of appropriated funds 
available during a fiscal year for operating expenses for military child 
development centers and programs shall be not less than the amount of 
child care fee receipts that are estimated to be received by the 
Department of Defense during that fiscal year.

``Sec. 1792. Child care employees

    ``(a) <<NOTE: Regulations.>> Required Training.--(1) The Secretary 
of Defense shall prescribe regulations implementing, a training program 
for child care employees. Those regulations shall apply uniformly among 
the military departments. Subject to paragraph (2), satisfactory 
completion of the training program shall be a condition of employment of 
any person as a child care employee.

    ``(2) Under those regulations, the Secretary shall require that each 
child care employee complete the training program not later than six 
months after the date on which the employee is employed as a child care 
employee.
    ``(3) The training program established under this subsection shall 
cover, at a minimum, training in the following:
            ``(A) Early childhood development.
            ``(B) Activities and disciplinary techniques appropriate to 
        children of different ages.
            ``(C) Child abuse prevention and detection.
            ``(D) Cardiopulmonary resuscitation and other emergency 
        medical procedures.

    ``(b) Training and Curriculum Specialists.--(1) The Secretary of 
Defense shall require that at least one employee at each military child 
development center be a specialist in training and curriculum 
development. The Secretary shall ensure that such employees have 
appropriate credentials and experience.
    ``(2) The duties of such employees shall include the following:
            ``(A) Special teaching activities at the center.
            ``(B) Daily oversight and instruction of other child care 
        employees at the center.
            ``(C) Daily assistance in the preparation of lesson plans.
            ``(D) Assistance in the center's child abuse prevention and 
        detection program.
            ``(E) Advising the director of the center on the performance 
        of other child care employees.

    ``(3) Each employee referred to in paragraph (1) shall be an 
employee in a competitive service position.
    ``(c) Competitive Rates of Pay.--For the purpose of providing 
military child development centers with a qualified and stable civilian 
workforce, employees at a military installation who are directly 
involved in providing child care and are paid from nonappropriated 
funds--
            ``(1) in the case of entry-level employees, shall be paid at 
        rates of pay competitive with the rates of pay paid to other 
        entry-level employees at that installation who are drawn from 
        the same labor pool; and

[[Page 110 STAT. 333]]

            ``(2) in the case of other employees, shall be paid at rates 
        of pay substantially equivalent to the rates of pay paid to 
        other employees at that installation with similar training, 
        seniority, and experience.

    ``(d) Employment Preference Program for Military Spouses.--(1) The 
Secretary of Defense shall conduct a program under which qualified 
spouses of members of the armed forces shall be given a preference in 
hiring for the position of child care employee in a position paid from 
nonappropriated funds if the spouse is among persons determined to be 
best qualified for the position.
    ``(2) A spouse who is provided a preference under this subsection at 
a military child development center may not be precluded from obtaining 
another preference, in accordance with section 1794 of this title, in 
the same geographic area as the military child development center.
    ``(e) Competitive Service Position Defined.--In this section, the 
term `competitive service position' means a position in the competitive 
service, as defined in section 2102(a)(1) of title 5.

``Sec. 1793. Parent fees

    ``(a) <<NOTE: Regulations.>> In General.--The Secretary of Defense 
shall prescribe regulations establishing fees to be charged parents for 
the attendance of children at military child development centers. Those 
regulations shall be uniform for the military departments and shall 
require that, in the case of children who attend the centers on a 
regular basis, the fees shall be based on family income.

    ``(b) Local Waiver Authority.--The Secretary of Defense may provide 
authority to installation commanders, on a case-by-case basis, to 
establish fees for attendance of children at child development centers 
at rates lower than those prescribed under subsection (a) if the rates 
prescribed under subsection (a) are not competitive with rates at local 
non-military child development centers.

``Sec. 1794. Child abuse prevention and safety at facilities

    ``(a) Child Abuse Task Force.--The Secretary of Defense shall 
maintain a special task force to respond to allegations of widespread 
child abuse at a military installation. The task force shall be composed 
of personnel from appropriate disciplines, including, where appropriate, 
medicine, psychology, and childhood development. In the case of such 
allegations, the task force shall provide assistance to the commander of 
the installation, and to parents at the installation, in helping them to 
deal with such allegations.
    ``(b) National Hotline.--(1) The Secretary of Defense shall maintain 
a national telephone number for persons to use to report suspected child 
abuse or safety violations at a military child development center or 
family home day care site. The Secretary shall ensure that such reports 
may be made anonymously if so desired by the person making the report. 
The Secretary shall establish procedures for following up on complaints 
and information received over that number.
    ``(2) <<NOTE: Public information.>> The Secretary shall publicize 
the existence of the number.

    ``(c) <<NOTE: Regulations.>> Assistance From Local Authorities.--The 
Secretary of Defense shall prescribe regulations requiring that, in a 
case of allegations of child abuse at a military child development 
center or family home day care site, the commander of the military 
installation or the head of the task force established under sub

[[Page 110 STAT. 334]]

section (a) shall seek the assistance of local child protective 
authorities if such assistance is available.

    ``(d) Safety Regulations.--The Secretary of Defense shall prescribe 
regulations on safety and operating procedures at military child 
development centers. Those regulations shall apply uniformly among the 
military departments.
    ``(e) Inspections.--The Secretary of Defense shall require that each 
military child development center be inspected not less often than four 
times a year. Each such inspection shall be unannounced. At least one 
inspection a year shall be carried out by a representative of the 
installation served by the center, and one inspection a year shall be 
carried out by a representative of the major command under which that 
installation operates.
    ``(f) Remedies for Violations.--(1) Except as provided in paragraph 
(2), any violation of a safety, health, or child welfare law or 
regulation (discovered at an inspection or otherwise) at a military 
child development center shall be remedied immediately.
    ``(2) In the case of a violation that is not life threatening, the 
commander of the major command under which the installation concerned 
operates may waive the requirement that the violation be remedied 
immediately for a period of up to 90 days beginning on the date of the 
discovery of the violation. If the violation is not remedied as of the 
end of that 90-day period, the military child development center shall 
be closed until the violation is remedied. The Secretary of the military 
department concerned may waive the preceding sentence and authorize the 
center to remain open in a case in which the violation cannot reasonably 
be remedied within that 90-day period or in which major facility 
reconstruction is required.

``Sec. 1795. Parent partnerships with child development centers

    ``(a) Parent Boards.--The Secretary of Defense shall require that 
there be established at each military child development center a board 
of parents, to be composed of parents of children attending the center. 
The board shall meet periodically with staff of the center and the 
commander of the installation served by the center for the purpose of 
discussing problems and concerns. The board, together with the staff of 
the center, shall be responsible for coordinating the parent 
participation program described in subsection (b).
    ``(b) Parent Participation Programs.--The Secretary of Defense shall 
require the establishment of a parent participation program at each 
military child development center. As part of such program, the 
Secretary of Defense may establish fees for attendance of children at 
such a center, in the case of parents who participate in the parent 
participation program at that center, at rates lower than the rates that 
otherwise apply.

``Sec. 1796. Subsidies for family home day care

    ``The Secretary of Defense may use appropriated funds available for 
military child care purposes to provide assistance to family home day 
care providers so that family home day care services can be provided to 
members of the armed forces at a cost comparable to the cost of services 
provided by military child development 
centers. <<NOTE: Regulations.>> The Secretary shall prescribe 
regulations for the provision of such assistance.

[[Page 110 STAT. 335]]

``Sec. 1797. Early childhood education program

    ``The Secretary of Defense shall require that all military child 
development centers meet standards of operation necessary for 
accreditation by an appropriate national early childhood programs 
accrediting body.

``Sec. 1798. Definitions

    ``In this subchapter:
            ``(1) The term `military child development center' means a 
        facility on a military installation (or on property under the 
        jurisdiction of the commander of a military installation) at 
        which child care services are provided for members of the armed 
        forces or any other facility at which such child care services 
        are provided that is operated by the Secretary of a military 
        department.
            ``(2) The term `family home day care' means home-based child 
        care services that are provided for members of the armed forces 
        by an individual who (A) is certified by the Secretary of the 
        military department concerned as qualified to provide those 
        services, and (B) provides those services on a regular basis for 
        compensation.
            ``(3) The term `child care employee' means a civilian 
        employee of the Department of Defense who is employed to work in 
        a military child development center (regardless of whether the 
        employee is paid from appropriated funds or nonappropriated 
        funds).
            ``(4) The term `child care fee receipts' means those 
        nonappropriated funds that are derived from fees paid by members 
        of the armed forces for child care services provided at military 
        child development centers.''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States Code, 
are amended by inserting after the item relating to chapter 87 the 
following new item:

``88. Military Family Programs and Military Child Care...........1781''.

    (b) Report on Five-Year Demand for Child Care.--(1) Not later than 
the date of the submission of the budget for fiscal year 1997 pursuant 
to section 1105 of title 31, United States Code, the Secretary of 
Defense shall submit to Congress a report on the expected demand for 
child care by military and civilian personnel of the Department of 
Defense during fiscal years 1997 through 2001.
    (2) The report shall include--
            (A) a plan for meeting the expected child care demand 
        identified in the report; and
            (B) an estimate of the cost of implementing that plan.

    (3) The report shall also include a description of methods for 
monitoring family home day care programs of the military

departments.
    (c) <<NOTE: 10 USC 1787 note.>> Plan for Implementation of 
Accreditation Requirement.--The Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a plan for carrying out the 
requirements of section 1787 of title 10, United States Code, as added 
by subsection (a). The plan shall be submitted not later than April 1, 
1997.

[[Page 110 STAT. 336]]

    (d) <<NOTE: 10 USC 1784 note.>> Continuation of Delegation of 
Authority With Respect to Hiring Preference for Qualified Military 
Spouses.--The provisions of Executive Order No. 12568, issued October 2, 
1986 (10 U.S.C. 113 note), shall apply as if the reference in that 
Executive order to section 806(a)(2) of the Department of Defense 
Authorization Act of 1986 refers to section 1784 of title 10, United 
States Code, as added by subsection (a).

    (e) Repealer.--The following provisions of law are repealed:
            (1) The Military Family Act of 1985 (title VIII of Public 
        Law 99-145; 10 U.S.C. 113 note).
            (2) The Military Child Care Act of 1989 (title XV of Public 
        Law 101-189; 10 U.S.C. 113 note).
SEC. 569.  <<NOTE: 10 USC 1501 note.>> DETERMINATION OF 
                        WHEREABOUTS AND STATUS OF MISSING PERSONS.

    (a) Purpose.--The purpose of this section is to ensure that any 
member of the Armed Forces (and any Department of Defense civilian 
employee or contractor employee who serves with or accompanies the Armed 
Forces in the field under orders) who becomes missing or unaccounted for 
is ultimately accounted for by the United States and, as a general rule, 
is not declared dead solely because of the passage of time.
    (b) In General.--(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 75 the following new 
chapter:

                      ``CHAPTER 76--MISSING PERSONS

``Sec.
``1501. System for accounting for missing persons.
``1502. Missing persons: initial report.
``1503. Actions of Secretary concerned; initial board inquiry.
``1504. Subsequent board of inquiry.
``1505. Further review.
``1506. Personnel files.
``1507. Recommendation of status of death.
``1508. Judicial review.
``1509. Preenactment, special interest cases.
``1510. Applicability to Coast Guard.
``1511. Return alive of person declared missing or dead.
``1512. Effect on State law.
``1513. Definitions.

``Sec. 1501. System for accounting for missing persons

    ``(a) Office for Missing Personnel.--
(1) <<NOTE: Establishment.>> The Secretary of Defense shall establish 
within the Office of the Secretary of Defense an office to have 
responsibility for Department of Defense policy relating to missing 
persons. Subject to the authority, direction, and control of the 
Secretary of Defense, the responsibilities of the office shall include--
            ``(A) policy, control, and oversight within the Department 
        of Defense of the entire process for investigation and recovery 
        related to missing persons (including matters related to search, 
        rescue, escape, and evasion); and
            ``(B) coordination for the Department of Defense with other 
        departments and agencies of the United States on all matters 
        concerning missing persons.

    ``(2) In carrying out the responsibilities of the office established 
under this subsection, the head of the office shall be responsible for 
the coordination for such purposes within the Department of

[[Page 110 STAT. 337]]

Defense among the military departments, the Joint Staff, and the 
commanders of the combatant commands.
    ``(3) The office shall establish policies, which shall apply 
uniformly throughout the Department of Defense, for personnel recovery 
(including search, rescue, escape, and evasion).
    ``(4) The office shall establish procedures to be followed by 
Department of Defense boards of inquiry, and by officials reviewing the 
reports of such boards, under this chapter.
    ``(b) Uniform DoD Procedures.--(1) The Secretary of Defense shall 
prescribe procedures, to apply uniformly throughout the Department of 
Defense, for--
            ``(A) the determination of the status of persons described 
        in subsection (c); and
            ``(B) for the systematic, comprehensive, and timely 
        collection, analysis, review, dissemination, and periodic update 
        of information related to such persons.

    ``(2) Such procedures may provide for the delegation by the 
Secretary of Defense of any responsibility of the Secretary under this 
chapter to the Secretary of a military department.

    ``(3) Such procedures shall be prescribed in a single directive 
applicable to all elements of the Department of Defense.
    ``(4) As part of such procedures, the Secretary may provide for the 
extension, on a case-by-case basis, of any time limit specified in 
section 1502, 1503, or 1504 of this title. Any such extension may not be 
for a period in excess of the period with respect to which the extension 
is provided. Subsequent extensions may be provided on the same basis.
    ``(c) Covered Persons.--Section 1502 of this title applies in the 
case of the following persons:
            ``(1) Any member of the armed forces on active duty who 
        becomes involuntarily absent as a result of a hostile action, or 
        under circumstances suggesting that the involuntary absence is a 
        result of a hostile action, and whose status is undetermined or 
        who is unaccounted for.
            ``(2) Any civilian employee of the Department of Defense, 
        and any employee of a contractor of the Department of Defense, 
        who serves with or accompanies the armed forces in the field 
        under orders who becomes involuntarily absent as a result of a 
        hostile action, or under circumstances suggesting that the 
        involuntary absence is a result of a hostile action, and whose 
        status is undetermined or who is unaccounted for.

    ``(d) Primary Next of Kin.--The individual who is primary next of 
kin of any person prescribed in subsection (c) may for purposes of this 
chapter designate another individual to act on behalf of that individual 
as primary next of kin. The Secretary concerned shall treat an 
individual so designated as if the individual designated were the 
primary next of kin for purposes of this chapter. A designation under 
this subsection may be revoked at any time by the person who made the 
designation.
    ``(e) Termination of Applicability of Procedures When Missing Person 
Is Accounted for.--The provisions
of this chapter relating to boards of inquiry and to the actions by the 
Secretary concerned on the reports of those boards shall cease to apply 
in the case of a missing person upon the person becoming accounted for 
or otherwise being determined to be in a status other than missing.

[[Page 110 STAT. 338]]

    ``(f) Secretary Concerned.--In this chapter, the term `Secretary 
concerned' includes, in the case of a civilian employee of the 
Department of Defense or contractor of the Department of Defense, the 
Secretary of the military department or head of the element of the 
Department of Defense employing the employee or contracting with the 
contractor, as the case may be.

``Sec. 1502. Missing persons: initial report

    ``(a) Preliminary Assessment and Recommendation by Commander.--After 
receiving information that the whereabouts and status of a person 
described in section 1501(c) of this title is uncertain and that the 
absence of the person may be involuntary, the commander of the unit, 
facility, or area to or in which the person is assigned shall make a 
preliminary assessment of the circumstances. If, as a result of that 
assessment, the commander concludes that the person is missing, the 
commander shall--
            ``(1) recommend that the person be placed in a missing 
        status; and
            ``(2) not later than 48 hours after receiving such 
        information, transmit a report containing that recommendation to 
        the theater component commander with jurisdiction over the 
        missing person in accordance with procedures prescribed under 
        section 1501(b) of this title.

    ``(b) Transmission Through Theater Component Commander.--Upon 
reviewing a report under subsection (a) recommending that a person be 
placed in a missing status, the theater component commander shall ensure 
that all necessary actions are being taken, and all appropriate assets 
are being used, to resolve the status of the missing person. Not later 
than 14 days after receiving the report, the theater component commander 
shall forward the report to the Secretary of Defense or the Secretary 
concerned in accordance with procedures prescribed under section 1501(b) 
of this title. The theater component commander shall include with such 
report a certification that all necessary actions are being taken, and 
all appropriate assets are being used, to resolve the status of the 
missing person.
    ``(c) Safeguarding and Forwarding of Records.--A commander making a 
preliminary assessment under subsection (a) with respect to a missing 
person shall (in accordance with procedures prescribed under section 
1501 of this title) safeguard and forward for official use any 
information relating to the whereabouts and status of the missing person 
that results from the preliminary assessment or from actions taken to 
locate the person. The theater component commander through whom the 
report with respect to the missing person is transmitted under 
subsection (b) shall ensure that all pertinent information relating to 
the whereabouts and status of the missing person that results from the 
preliminary assessment or from actions taken to locate the person is 
properly safeguarded to avoid loss, damage, or modification.

``Sec. 1503. Actions of Secretary concerned; initial board inquiry

    ``(a) Determination by Secretary.--Upon receiving a recommendation 
under section 1502(b) of this title that a person be placed in a missing 
status, the Secretary receiving the recommendation shall review the 
recommendation and, not later than 10 days after receiving such 
recommendation, shall appoint a board under

[[Page 110 STAT. 339]]

this section to conduct an inquiry into the whereabouts and status of 
the person.
    ``(b) Inquiries Involving More Than One Missing Person.--If it 
appears to the Secretary who appoints a board under this section that 
the absence or missing status of two or more persons is factually 
related, the Secretary may appoint a single board under this section to 
conduct the inquiry into the whereabouts and status of all such persons.
    ``(c) Composition.--(1) A board appointed under this section to 
inquire into the whereabouts and status of a person shall consist of at 
least one individual described in paragraph (2) who has experience with 
and understanding of military operations or activities similar to the 
operation or activity in which the person

disappeared.
    ``(2) An individual referred to in paragraph (1) is the following:
            ``(A) A military officer, in the case of an inquiry with 
        respect to a member of the armed forces.
            ``(B) A civilian, in the case of an inquiry with respect to 
        a civilian employee of the Department of Defense or of a 
        contractor of the Department of Defense.

    ``(3) An individual may be appointed as a member of a board under 
this section only if the individual has a security clearance that 
affords the individual access to all information relating to the 
whereabouts and status of the missing persons covered by the inquiry.
    ``(4) A Secretary appointing a board under this subsection shall, 
for purposes of providing legal counsel to the board, assign to the 
board a judge advocate, or appoint to the board an attorney, who has 
expertise in the law relating to missing persons, the determination of 
death of such persons, and the rights of family members and dependents 
of such persons.
    ``(d) Duties of Board.--A board appointed to conduct an inquiry into 
the whereabouts and status of a missing person under this section 
shall--
            ``(1) collect, develop, and investigate all facts and 
        evidence relating to the disappearance or whereabouts and status 
        of the person;
            ``(2) collect appropriate documentation of the facts and 
        evidence covered by the board's investigation;
            ``(3) analyze the facts and evidence, make findings based on 
        that analysis, and draw conclusions as to the current 
        whereabouts and status of the person; and
            ``(4) with respect to each person covered by the inquiry, 
        recommend to the Secretary who appointed the board that--
                    ``(A) the person be placed in a missing status; or
                    ``(B) the person be declared to have deserted, to be 
                absent without leave, or (subject to the requirements of 
                section 1507 of this title) to be dead.

    ``(e) Board Proceedings.--During the proceedings of an inquiry under 
this section, a board shall--
            ``(1) collect, record, and safeguard all facts, documents, 
        statements, photographs, tapes, messages, maps, sketches, 
        reports, and other information (whether classified or 
        unclassified) relating to the whereabouts and status of each 
        person covered by the inquiry;

[[Page 110 STAT. 340]]

            ``(2) gather information relating to actions taken to find 
        the person, including any evidence of the whereabouts and status 
        of the person arising from such actions; and
            ``(3) <<NOTE: Records.>> maintain a record of its 
        proceedings.

    ``(f) Counsel for Missing Person.--(1) The Secretary appointing a 
board to conduct an inquiry under this section shall appoint counsel to 
represent each person covered by the inquiry or, in a case covered by 
subsection (b), one counsel to represent all persons covered by the 
inquiry. Counsel appointed under this paragraph may be referred to as 
`missing person's counsel' and represents the interests of the person 
covered by the inquiry (and not any member of the person's family or 
other interested parties).
    ``(2) To be appointed as a missing person's counsel, a person must--
            ``(A) have the qualifications specified in section 827(b) of 
        this title (article 27(b) of the Uniform Code of Military 
        Justice) for trial counsel or defense counsel detailed for a 
        general

        court-martial;
            ``(B) have a security clearance that affords the counsel 
        access to all information relating to the whereabouts and status 
        of the person or persons covered by the inquiry; and
            ``(C) have expertise in the law relating to missing persons, 
        the determination of the death of such persons, and the rights 
        of family members and dependents of such persons.

    ``(3) A missing person's counsel--
            ``(A) shall have access to all facts and evidence considered 
        by the board during the proceedings under the inquiry for which 
        the counsel is appointed;
            ``(B) shall observe all official activities of the board 
        during such proceedings;
            ``(C) may question witnesses before the board; and
            ``(D) shall monitor the deliberations of the board.

    ``(4) A missing person's counsel shall assist the board in ensuring 
that all appropriate information concerning the case is collected, 
logged, filed, and safeguarded.
    ``(5) A missing person's counsel shall review the report of the 
board under subsection (h) and submit to the Secretary concerned who 
appointed the board an independent review of that report. That review 
shall be made an official part of the record of the board.
    ``(g) Access to Proceedings.--The proceedings of a board during an 
inquiry under this section shall be closed to the public (including, 
with respect to the person covered by the inquiry, the primary next of 
kin, other members of the immediate family, and any other previously 
designated person of the person).
    ``(h) Report.--(1) A board appointed under this section shall submit 
to the Secretary who appointed the board a report on the inquiry carried 
out by the board. The report shall include--
            ``(A) a discussion of the facts and evidence considered by 
        the board in the inquiry;
            ``(B) the recommendation of the board under subsection (d) 
        with respect to each person covered by the report; and
            ``(C) disclosure of whether classified documents and 
        information were reviewed by the board or were otherwise used by 
        the board in forming recommendations under subparagraph (B).

[[Page 110 STAT. 341]]

    ``(2) A board shall submit a report under this subsection with 
respect to the inquiry carried out by the board not later than 30 days 
after the date of the appointment of the board to carry out the inquiry. 
The report may include a classified annex.
    ``(3) The Secretary of Defense shall prescribe procedures for the 
release of a report submitted under this subsection with respect to a 
missing person. Such procedures shall provide that the report may not be 
made public (except as provided for in subsection (j)) until one year 
after the date on which the report is submitted.
    ``(i) Determination by Secretary.--(1) Not later than 30 days after 
receiving a report from a board under subsection (h), the Secretary 
receiving the report shall review the report.
    ``(2) In reviewing a report under paragraph (1), the Secretary shall 
determine whether or not the report is complete and free of 
administrative error. If the Secretary determines that the report is 
incomplete, or that the report is not free of administrative error, the 
Secretary may return the report to the board for further action on the 
report by the board.
    ``(3) Upon a determination by the Secretary that a report reviewed 
under this subsection is complete and free of administrative error, the 
Secretary shall make a determination concerning the status of each 
person covered by the report, including whether the person shall--
            ``(A) be declared to be missing;
            ``(B) be declared to have deserted;
            ``(C) be declared to be absent without leave; or
            ``(D) be declared to be dead.

    ``(j) Report to Family Members and Other Interested Persons.--Not 
later than 30 days after the date on which the Secretary concerned makes 
a determination of the status of a person under subsection (i), the 
Secretary shall take reasonable actions to--
            ``(1) provide to the primary next of kin, the other members 
        of the immediate family, and any other previously designated 
        person of the person--
                    ``(A) an unclassified summary of the unit 
                commander's report with respect to the person under 
                section 1502(a) of this title; and
                    ``(B) the report of the board (including the names 
                of the members of the board) under subsection (h); and
            ``(2) inform each individual referred to in paragraph (1) 
        that the United States will conduct a subsequent inquiry into 
        the whereabouts and status of the person on or about one year 
        after the date of the first official notice of the disappearance 
        of the person, unless information becomes available sooner that 
        may result in a change in status of the person.

    ``(k) Treatment of Determination.--Any determination of the status 
of a missing person under subsection (i) shall be treated as the 
determination of the status of the person by all departments and 
agencies of the United States.

``Sec. 1504. Subsequent board of inquiry

    ``(a) Additional Board.--If information that may result in a change 
of status of a person covered by a determination under section 1503(i) 
of this title becomes available within one year after the date of the 
transmission of a report with respect to the person under section 
1502(a)(2) of this title, the Secretary concerned shall

[[Page 110 STAT. 342]]

appoint a board under this section to conduct an inquiry into the 
information.
    ``(b) Date of Appointment.--The Secretary concerned shall appoint a 
board under this section to conduct an inquiry into the whereabouts and 
status of a missing person on or about one year after the date of the 
transmission of a report concerning the person under section 1502(a)(2) 
of this title.
    ``(c) Combined Inquiries.--If it appears to the Secretary concerned 
that the absence or status of two or more persons is factually related, 
the Secretary may appoint one board under this section to conduct the 
inquiry into the whereabouts and status of such persons.
    ``(d) Composition.--(1) A board appointed under this section shall 
be composed of at least three members as follows:
            ``(A) In the case of a board that will inquire into the 
        whereabouts and status of one or more members of the armed 
        forces (and no civilians described in subparagraph (B)), the 
        board shall be composed of officers having the grade of major or 
        lieutenant commander or above.
            ``(B) In the case of a board that will inquire into the 
        whereabouts and status of one or more civilian employees of the 
        Department of Defense or contractors of the Department of 
        Defense (and no members of the armed forces), the board shall be 
        composed of--
                    ``(i) not less than three employees of the 
                Department of Defense whose rate of annual pay is equal 
                to or greater than the rate of annual pay payable for 
                grade GS-13 of the General Schedule under section 5332 
                of title 5; and
                    ``(ii) such members of the armed forces as the 
                Secretary considers advisable.
            ``(C) In the case of a board that will inquire into the 
        whereabouts and status of both one or more members of the armed 
        forces and one or more civilians described in subparagraph (B)--
                    ``(i) the board shall include at least one officer 
                described in subparagraph (A) and at least one employee 
                of the Department of Defense described in subparagraph 
                (B)(i); and
                    ``(ii) the ratio of such officers to such employees 
                on the board shall be roughly proportional to the ratio 
                of the number of members of the armed forces who are 
                subjects of the board's inquiry to the number of 
                civilians who are subjects of the board's inquiry.

    ``(2) The Secretary concerned shall designate one member of a board 
appointed under this section as president of the board. The president of 
the board shall have a security clearance that affords the president 
access to all information relating to the whereabouts and status of each 
person covered by the inquiry.
    ``(3) One member of each board appointed under this subsection shall 
be an individual who--
            ``(A) has an occupational specialty similar to that of one 
        or more of the persons covered by the inquiry; and
            ``(B) has an understanding of and expertise in the type of 
        official activities that one or more such persons were engaged 
        in at the time such person or persons disappeared.

[[Page 110 STAT. 343]]

    ``(4) The Secretary who appoints a board under this subsection 
shall, for purposes of providing legal counsel to the board, assign to 
the board a judge advocate, or appoint to the board an attorney, with 
the same qualifications as specified in section 1503(c)(4) of this 
title.
    ``(e) Duties of Board.--A board appointed under this section to 
conduct an inquiry into the whereabouts and status of a person shall--
            ``(1) review the reports with respect to the person 
        transmitted under section 1502(a)(2) of this title and submitted 
        under section 1503(h) of this title;
            ``(2) collect and evaluate any document, fact, or other 
        evidence with respect to the whereabouts and status of the 
        person that has become available since the determination of the 
        status of the person under section 1503 of this title;
            ``(3) draw conclusions as to the whereabouts and status of 
        the person;
            ``(4) determine on the basis of the activities under 
        paragraphs (1) and (2) whether the status of the person should 
        be continued or changed; and
            ``(5) <<NOTE: Reports.>> submit to the Secretary concerned a 
        report describing the findings and conclusions of the board, 
        together with a recommendation for a determination by the 
        Secretary concerning the whereabouts and status of the person.

    ``(f) Counsel for Missing Persons.--(1) When the Secretary concerned 
appoints a board to conduct an inquiry under this section, the Secretary 
shall appoint counsel to represent each person covered by the inquiry.
    ``(2) A person appointed as counsel under this subsection shall meet 
the qualifications and have the duties set forth in section 1503(f) of 
this title for a missing person's counsel appointed under that section.

    ``(3) The review of the report of a board on an inquiry that is 
submitted by such counsel shall be made an official part of the record 
of the board with respect to the inquiry.
    ``(g) Attendance of Family Members and Certain Other Interested 
Persons at Proceedings.--(1) With respect to any person covered by an 
inquiry under this section, the primary next of kin, other members of 
the immediate family, and any other previously designated person of the 
person may attend the proceedings of the board during the inquiry.
    ``(2) The Secretary concerned shall take reasonable actions to 
notify each individual referred to in paragraph (1) of the opportunity 
to attend the proceedings of a board. Such notice shall be provided not 
less than 60 days before the first meeting of the board.
    ``(3) An individual who receives notice under paragraph (2) shall 
notify the Secretary of the intent, if any, of that individual to attend 
the proceedings of the board not later than 21 days after the date on 
which the individual receives the notice.
    ``(4) Each individual who notifies the Secretary under paragraph (3) 
of the individual's intent to attend the proceedings of the board--
            ``(A) in the case of an individual who is the primary next 
        of kin or the previously designated person, may attend the 
        proceedings of the board with private counsel;
            ``(B) shall have access to the personnel file of the missing 
        person, to unclassified reports, if any, of the board appointed 
        under section 1503 of this title to conduct the inquiry into

[[Page 110 STAT. 344]]

        the whereabouts and status of the person, and to any other 
        unclassified information or documents relating to the 
        whereabouts and status of the person;
            ``(C) shall be afforded the opportunity to present 
        information at the proceedings of the board that such individual 
        considers to be relevant to those proceedings; and
            ``(D) subject to paragraph (5), shall be given the 
        opportunity to submit in writing an objection to any 
        recommendation of the board under subsection (i) as to the 
        status of the missing person.

    ``(5)(A) Individuals who wish to file objections under paragraph 
(4)(D) to any recommendation of the board shall--
            ``(i) submit a letter of intent to the president of the 
        board not later than 15 days after the date on which the 
        recommendations are made; and
            ``(ii) submit to the president of the board the objections 
        in writing not later than 30 days after the date on which the 
        recommendations are made.

    ``(B) The president of a board shall include any objections to a 
recommendation of the board that are submitted to the president of the 
board under subparagraph (A) in the report of the board containing the 
recommendation under subsection (i).
    ``(6) An individual referred to in paragraph (1) who attends the 
proceedings of a board under this subsection shall not be entitled to 
reimbursement by the United States for any costs (including travel, 
lodging, meals, local transportation, legal fees, transcription costs, 
witness expenses, and other expenses) incurred by that individual in 
attending such proceedings.
    ``(h) <<NOTE: Classified information.>> Availability of Information 
to Boards.--(1) In conducting proceedings in an inquiry under this 
section, a board may secure directly from any department or agency of 
the United States any information that the board considers necessary in 
order to conduct the proceedings.

    ``(2) Upon written request from the president of a board, the head 
of a department or agency of the United States shall release information 
covered by the request to the board. In releasing such information, the 
head of the department or agency shall--
            ``(A) declassify to an appropriate degree classified 
        information; or
            ``(B) release the information in a manner not requiring the 
        removal of markings indicating the classified nature of the 
        information.

    ``(3)(A) If a request for information under paragraph (2) covers 
classified information that cannot be declassified, or if the 
classification markings cannot be removed before release from the 
information covered by the request, or if the material cannot be 
summarized in a manner that prevents the release of classified 
information, the classified information shall be made available only to 
the president of the board making the request and the counsel for the 
missing person appointed under subsection (f).
    ``(B) The president of a board shall close to persons who do not 
have appropriate security clearances the proceeding of the board at 
which classified information is discussed. Participants at a proceeding 
of a board at which classified information is discussed shall comply 
with all applicable laws and regulations relating to the disclosure of 
classified information. The Secretary concerned

[[Page 110 STAT. 345]]

shall assist the president of a board in ensuring that classified 
information is not compromised through board proceedings.
    ``(i) Recommendation on Status.--(1) Upon completion of an inquiry 
under this subsection, a board shall make a recommendation as to the 
current whereabouts and status of each missing person covered by the 
inquiry.
    ``(2) A board may not recommend under paragraph (1) that a person be 
declared dead unless in making the recommendation the board complies 
with section 1507 of this title.
    ``(j) Report.--A board appointed under this section shall submit to 
the Secretary concerned a report on the inquiry carried out by the 
board, together with the evidence considered by the board during the 
inquiry. The report may include a classified annex.
    ``(k) Actions by Secretary Concerned.--(1) Not later than 30 days 
after the receipt of a report from a board under subsection (j), the 
Secretary shall review--
            ``(A) the report;
            ``(B) the review of the report submitted to the Secretary 
        under subsection (f)(3) by the counsel for each person covered 
        by the report; and
            ``(C) the objections, if any, to the report submitted to the 
        president of the board under subsection (g)(5).

    ``(2) In reviewing a report under paragraph (1) (including the 
objections described in subparagraph (C) of that paragraph), the 
Secretary concerned shall determine whether or not the report is 
complete and free of administrative error. If the Secretary determines 
that the report is incomplete, or that the report is not free of 
administrative error, the Secretary may return the report to the board 
for further action on the report by the board.
    ``(3) Upon a determination by the Secretary that a report reviewed 
under this subsection is complete and free of administrative error, the 
Secretary shall make a determination concerning the status of each 
person covered by the report.
    ``(l) Report to Family Members and Other Interested Persons.--Not 
later than 60 days after the date on which the Secretary concerned makes 
a determination with respect to a missing person under subsection (k), 
the Secretary shall--
            ``(1) provide the report reviewed by the Secretary in making 
        the determination to the primary next of kin, the other members 
        of the immediate family, and any other previously designated 
        person of the person; and
            ``(2) in the case of a person who continues to be in a 
        missing status, inform each individual referred to in paragraph 
        (1) that the United States will conduct a further investigation 
        into the whereabouts and status of the person as specified in 
        section 1505 of this title.

    ``(m) Treatment of Determination.--Any determination of the status 
of a missing person under subsection (k) shall supersede the 
determination of the status of the person under section 1503 of this 
title and shall be treated as the determination of the status of the 
person by all departments and agencies of the United States.

``Sec. 1505. Further review

    ``(a) Subsequent Review.--The Secretary concerned shall conduct 
subsequent inquiries into the whereabouts and status of any person 
determined by the Secretary under section 1504 of this title to be in a 
missing status.

[[Page 110 STAT. 346]]

    ``(b) Frequency of Subsequent Reviews.--(1) In the case of a missing 
person who was last known to be alive or who was last suspected of being 
alive, the Secretary shall appoint a board to conduct an inquiry with 
respect to a person under this

subsection--
            ``(A) on or about three years after the date of the initial 
        report of the disappearance of the person under section 1502(a) 
        of this title; and
            ``(B) not later than every three years thereafter.

    ``(2) In addition to appointment of boards under paragraph (1), the 
Secretary shall appoint a board to conduct an inquiry with respect to a 
missing person under this subsection upon receipt of information that 
could result in a change of status of the missing person. When the 
Secretary appoints a board under this paragraph, the time for subsequent 
appointments of a board under paragraph (1)(B) shall be determined from 
the date of the receipt of such information.
    ``(3) The Secretary is not required to appoint a board under 
paragraph (1) with respect to the disappearance of any person--
            ``(A) more than 30 years after the initial report of the 
        disappearance of the missing person required by section 1502 of 
        this title; or
            ``(B) if, before the end of such 30-year period, the missing 
        person is accounted for.

    ``(c) Action Upon Discovery or Receipt of Information.--(1) Whenever 
any United States intelligence agency or other element of the Government 
finds or receives information that may be related to a missing person, 
the information shall promptly be forwarded to the office established 
under section 1501 of this title.
    ``(2) Upon receipt of information under paragraph (1), the head of 
the office established under section 1501 of this title shall as 
expeditiously as possible ensure that the information is added to the 
appropriate case file for that missing person and notify (A) the 
designated missing person's counsel for that person, and (B) the primary 
next of kin and any previously designated person for the missing person 
of the existence of that information.
    ``(3) The head of the office established under section 1501 of this 
title, with the advice of the missing person's counsel notified under 
paragraph (2), shall determine whether the information is significant 
enough to require a board review under this section.
    ``(d) Conduct of Proceedings.--If it is determined that such a board 
should be appointed, the appointment of, and activities before, a board 
appointed under this section shall be governed by the provisions of 
section 1504 of this title with respect to a board appointed under that 
section.

``Sec. 1506. Personnel files

    ``(a) Information in Files.--Except as provided in subsections (b), 
(c), and (d), the Secretary concerned shall, to the maximum extent 
practicable, ensure that the personnel file of a missing person contains 
all information in the possession of the United States relating to the 
disappearance and whereabouts and status of the person.
    ``(b) Classified Information.--The Secretary concerned may withhold 
classified information from a personnel file under this section. If the 
Secretary concerned withholds classified information

[[Page 110 STAT. 347]]

from a personnel file, the Secretary shall ensure that the file contains 
the following:
            ``(1) A notice that the withheld information exists.
            ``(2) A notice of the date of the most recent review of the 
        classification of the withheld information.

    ``(c) Protection of Privacy.--The Secretary concerned shall maintain 
personnel files under this section, and shall permit disclosure of or 
access to such files, in accordance with the provisions of section 552a 
of title 5 and with other applicable laws and regulations pertaining to 
the privacy of the persons covered by the files.
    ``(d) Privileged Information.--(1) The Secretary concerned shall 
withhold from personnel files under this section, as privileged 
information, debriefing reports provided by missing persons returned to 
United States control which are obtained
under a promise of confidentiality made for the purpose of ensuring the 
fullest possible disclosure of information.

    ``(2) If a debriefing report contains non-derogatory information 
about the status and whereabouts of a missing person other than the 
source of the debriefing report, the Secretary concerned shall prepare 
an extract of the non-derogatory information. That extract, following a 
review by the source of the debriefing report, shall be placed in the 
personnel file of the missing person in such a manner as to protect the 
identity of the source providing the information.
    ``(3) Whenever the Secretary concerned withholds a debriefing report 
from a personnel file under this subsection, the Secretary shall ensure 
that the file contains a notice that withheld information exists.
    ``(e) Wrongful Withholding.--Except as provided in subsections (a) 
through (d), any person who knowingly and willfully withholds from the 
personnel file of a missing person any information relating to the 
disappearance or whereabouts and status of a missing person shall be 
fined as provided in title 18 or imprisoned not more than one year, or 
both.
    ``(f) Availability of Information.--The Secretary concerned shall, 
upon request, make available the contents of the personnel file of a 
missing person to the primary next of kin, the other members of the 
immediate family, or any other previously designated person of the 
person.

``Sec. 1507. Recommendation of status of death

    ``(a) Requirements Relating to Recommendation.--A board appointed 
under section 1503, 1504, or 1505 of this title may not recommend that a 
person be declared dead unless--
            ``(1) credible evidence exists to suggest that the person is 
        dead;
            ``(2) the United States possesses no credible evidence that 
        suggests that the person is alive; and
            ``(3) representatives of the United States--
                    ``(A) have made a complete search of the area where 
                the person was last seen (unless, after making a good 
                faith effort to obtain access to such area, such 
                representatives are not granted such access); and
                    ``(B) have examined the records of the government or 
                entity having control over the area where the person was 
                last seen (unless, after making a good faith effort

[[Page 110 STAT. 348]]

                to obtain access to such records, such representatives 
                are not granted such access).

    ``(b) <<NOTE: Reports.>> Submittal of Information on Death.--If a 
board appointed under section 1503, 1504, or 1505 of this title makes a 
recommendation that a missing person be declared dead, the board shall 
include in the report of the board with respect to the person under that 
section the following:
            ``(1) A detailed description of the location where the death 
        occurred.
            ``(2) A statement of the date on which the death occurred.
            ``(3) A description of the location of the body, if 
        recovered.
            ``(4) If the body has been recovered and is not identifiable 
        through visual means, a certification by a practitioner of an 
        appropriate forensic science that the body recovered is that of 
        the missing person.

``Sec. 1508. Judicial review

    ``(a) Right of Review.--A person who is the primary next of kin (or 
the previously designated person) of a person who is the subject of a 
finding described in subsection (b) may obtain judicial review in a 
United States district court of that finding, but only on the basis of a 
claim that there is information that could affect the status of the 
missing person's case that was not adequately considered during the 
administrative review process under this chapter. Any such review shall 
be as provided in section 706 of title 5.
    ``(b) Findings for Which Judicial Review May Be Sought.--Subsection 
(a) applies to the following findings:
            ``(1) A finding by a board appointed under section 1504 or 
        1505 of this title that a missing person is dead.
            ``(2) A finding by a board appointed under section 1509 of 
        this title that confirms that a missing person formerly declared 
        dead is in fact dead.

    ``(c) Subsequent Review.--Appeals from a decision of the district 
court shall be taken to the appropriate United States court of appeals 
and to the Supreme Court as provided by law.

``Sec. 1509. Preenactment, special interest cases

    ``(a) Review of Status.--In the case of an unaccounted for person 
covered by section 1501(c) of this title who is described in subsection 
(b), if new information that could change the status of that person is 
found or received by a United States intelligence agency, by a 
Department of Defense agency, or by a person specified in section 
1504(g) of this title, that information shall be provided to the 
Secretary of Defense with a request that the Secretary evaluate the 
information in accordance with sections 1505(c) and 1505(d) of this 
title.
    ``(b) <<NOTE: Prisoners of war. Missing in action.>> Cases Eligible 
for Review.--The cases eligible for review under this section are the 
following:
            ``(1) With respect to the Korean conflict, any unaccounted 
        for person who was classified as a prisoner of war or as missing 
        in action during that conflict and who (A) was known to be or 
        suspected to be alive at the end of that conflict, or (B) was 
        classified as missing in action and whose capture was possible.
            ``(2) With respect to the Cold War, any unaccounted for 
        person who was engaged in intelligence operations (such as

[[Page 110 STAT. 349]]

        aerial `ferret' reconnaissance missions over and around the 
        Soviet Union and China) during the Cold War.
            ``(3) With respect to the Indochina war era, any unaccounted 
        for person who was classified as a prisoner of war or as missing 
        in action during the Indochina conflict.

    ``(c) Special Rule for Persons Classified as `KIA/BNR'.--In the case 
of a person described in subsection (b) who was classified as `killed in 
action/body not recovered', the case of that person may be reviewed 
under this section only if the new information referred to in subsection 
(a) is compelling.

    ``(d) Definitions.--In this section:
            ``(1) The term `Korean conflict' means the period beginning 
        on June 27, 1950, and ending on January 31, 1955.
            ``(2) The term `Cold War' means the period beginning on 
        September 2, 1945, and ending on August 21, 1991.
            ``(3) The term `Indochina war era' means the period 
        beginning on July 8, 1959, and ending on May 15, 1975.

``Sec. 1510. Applicability to Coast Guard

    ``(a) Designated Officer To Have Responsibility.--The 
Secretary of Transportation shall designate an officer of the Department 
of Transportation to have responsibility within the Department of 
Transportation for matters relating to missing persons who are members 
of the Coast Guard.
    ``(b) Procedures.--The Secretary of Transportation shall prescribe 
procedures for the determination of the status of persons described in 
section 1501(c) of this title who are members of the Coast Guard and for 
the collection, analysis, review, and update of information on such 
persons. To the maximum extent practicable, the procedures prescribed 
under this section shall be similar to the procedures prescribed by the 
Secretary of Defense under section 1501(b) of this title.

``Sec. 1511. Return alive of person declared missing or dead

    ``(a) Pay and Allowances.--Any person (except for a person 
subsequently determined to have been absent without leave or a deserter) 
in a missing status or declared dead under subchapter VII of chapter 55 
of title 5 or chapter 10 of title 37 or by a board appointed under this 
chapter who is found alive and returned to the control of the United 
States shall be paid for the full time of the absence of the person 
while given that status or declared dead under the law and regulations 
relating to the pay and allowances of persons returning from a missing 
status.
    ``(b) Effect on Gratuities Paid as a Result of Status.--Subsection 
(a) shall not be interpreted to invalidate or otherwise affect the 
receipt by any person of a death gratuity or other payment from the 
United States on behalf of a person referred to in subsection (a) before 
the date of the enactment of this chapter.

``Sec. 1512. Effect on State law

    ``(a) Nonpreemption of State Authority.--Nothing in this chapter 
shall be construed to invalidate or limit the power of any State court 
or administrative entity, or the power of any court or administrative 
entity of any political subdivision thereof, to find or declare a person 
dead for purposes of such State or political subdivision.

[[Page 110 STAT. 350]]

    ``(b) State Defined.--In this section, the term `State' includes the 
District of Columbia, the Commonwealth of Puerto Rico, and any territory 
or possession of the United States.

``Sec. 1513. Definitions

    ``In this chapter:
            ``(1) The term `missing person' means--
                    ``(A) a member of the Armed Forces on active duty 
                who is in a missing status; or
                    ``(B) a civilian employee of the Department of 
                Defense or an employee of a contractor of the Department 
                of Defense who serves with or accompanies the Armed 
                Forces in the field under orders and who is in a missing 
                status.
            ``(2) The term `missing status' means the status of a 
        missing person who is determined to be absent in a category of 
        any of the following:
                    ``(A) Missing.
                    ``(B) Missing in action.
                    ``(C) Interned in a foreign country.
                    ``(D) Captured.
                    ``(E) Beleaguered.
                    ``(F) Besieged.
                    ``(G) Detained in a foreign country against that 
                person's will.
            ``(3) The term `accounted for', with respect to a person in 
        a missing status, means that--
                    ``(A) the person is returned to United States 
                control alive;
                    ``(B) the remains of the person are recovered and, 
                if not identifiable through visual means as those of the 
                missing person, are identified as those of the missing 
                person by a practitioner of an appropriate forensic 
                science; or
                    ``(C) credible evidence exists to support another 
                determination of the person's status.
            ``(4) The term `primary next of kin', in the case of a 
        missing person, means the individual authorized to direct 
        disposition of the remains of the person under section 1482(c) 
        of this title.
            ``(5) The term `member of the immediate family', in the case 
        of a missing person, means the following:
                    ``(A) The spouse of the person.
                    ``(B) A natural child, adopted child, stepchild, or 
                illegitimate child (if acknowledged by the person or 
                parenthood has been established by a court of competent 
                jurisdiction) of the person, except that if such child 
                has not attained the age of 18 years, the term means a 
                surviving parent or legal guardian of such child.
                    ``(C) A biological parent of the person, unless 
                legal custody of the person by the parent has been 
                previously terminated by reason of a court decree or 
                otherwise under law and not restored.
                    ``(D) A brother or sister of the person, if such 
                brother or sister has attained the age of 18 years.
                    ``(E) Any other blood relative or adoptive relative 
                of the person, if such relative was given sole legal 
                custody of the person by a court decree or otherwise 
                under law

[[Page 110 STAT. 351]]

                before the person attained the age of 18 years and such 
                custody was not subsequently terminated before that 
                time.
            ``(6) The term `previously designated person', in the case 
        of a missing person, means an individual designated by the 
        person under section 655 of this title for purposes of this 
        chapter.
            ``(7) The term `classified information' means any 
        information the unauthorized disclosure of which (as determined 
        under applicable law and regulations) could reasonably be 
        expected to damage the national security.
            ``(8) The term `theater component commander' means, with 
        respect to any of the combatant commands, an officer of any of 
        the armed forces who (A) is commander of all forces of that 
        armed force assigned to that combatant command, and (B) is 
        directly subordinate to the commander of the combatant 
        command.''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States Code, 
are amended by inserting after the item relating to chapter 75 the 
following new item:

``76. Missing Persons............................................1501''.

    (c) Conforming Amendments.--Chapter 10 of title 37, United States 
Code, is amended as follows:
            (1) Section 555 is amended--
                    (A) in subsection (a), by striking out ``When a 
                member'' and inserting in lieu thereof ``Except as 
                provided in subsection (d), when a member''; and
                    (B) by adding at the end the following new 
                subsection:

    ``(d) This section does not apply in a case to which section 1502 of 
title 10 applies.''.
            (2) Section 552 is amended--
                    (A) in subsection (a), by striking out ``for all 
                purposes,'' in the second sentence of the matter 
                following paragraph (2) and all that follows through the 
                end of the sentence and inserting in lieu thereof ``for 
                all purposes.'';
                    (B) in subsection (b), by inserting ``or under 
                chapter 76 of title 10'' before the period at the end; 
                and
                    (C) in subsection (e), by inserting ``or under 
                chapter 76 of title 10'' after ``section 555 of this 
                title''.
            (3) Section 553 is amended--
                    (A) in subsection (f), by striking out ``the date 
                the Secretary concerned receives evidence that'' and 
                inserting in lieu thereof ``the date on which, in a case 
                covered by section 555 of this title, the Secretary 
                concerned receives evidence, or, in a case covered by 
                chapter 76 of title 10, the Secretary concerned 
                determines pursuant to that chapter, that''; and
                    (B) in subsection (g), by inserting ``or under 
                chapter 76 of title 10'' after ``section 555 of this 
                title''.
            (4) Section 556 is amended--
                    (A) in subsection (a), by inserting after paragraph 
                (7) the following:

``Paragraphs (1), (5), (6), and (7) only apply with respect to a case to 
which section 555 of this title applies.'';

[[Page 110 STAT. 352]]

                    (B) in subsection (b), by inserting ``, in a case to 
                which section 555 of this title applies,'' after ``When 
                the Secretary concerned''; and
                    (C) in subsection (h)--
                          (i) in the first sentence, by striking out 
                      ``status'' and inserting in lieu thereof ``pay''; 
                      and
                          (ii) in the second sentence, by inserting ``in 
                      a case to which section 555 of this title 
                      applies'' after ``under this section''.

    (d) Designation of Persons Having Interest in Status of Service 
Members.--(1) Chapter 37 of title 10, United States Code, is amended by 
adding at the end the following new section:
``Sec. 655. Designation of persons having interest in status of a 
                  missing member

    ``(a) The Secretary concerned shall, upon the enlistment or 
appointment of a person in the armed forces, require that the person 
specify in writing the person or persons, if any, other than that 
person's primary next of kin or immediate family, to whom information on 
the whereabouts and status of the member shall be provided if such 
whereabouts and status are investigated under chapter 76 of this title. 
The Secretary shall periodically, and whenever the member is deployed as 
part of a contingency operation or in other circumstances specified by 
the Secretary, require that such designation be reconfirmed, or 
modified, by the member.
    ``(b) The Secretary concerned shall, upon the request of a member, 
permit the member to revise the person or persons specified by the 
member under subsection (a) at any time. Any such revision shall be in 
writing.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``655. Designation of persons having interest in status of a missing 
           member.''.

    (e) <<NOTE: 5 USC 5561 note.>> Accounting for Civilian Employee and 
Contractors of the United States.--(1) The Secretary of State shall 
carry out a comprehensive study of the provisions of subchapter VII of 
chapter 55 of title 5, United States Code (commonly referred to as the 
``Missing Persons Act of 1942'') (5 U.S.C. 5561 et seq.) and any other 
law or regulation establishing procedures for the accounting for of 
civilian employees of the United States or contractors of the United 
States who serve with or accompany the Armed Forces in the field. The 
purpose of the study shall be to determine the means, if any, by which 
those procedures may be improved.

    (2) The Secretary of State shall carry out the study required under 
paragraph (1) in consultation with the Secretary of Defense, the 
Secretary of Transportation, the Director of Central Intelligence, and 
the heads of such other departments and agencies of the United States as 
the President designates for that purpose.
    (3) In carrying out the study, the Secretary of State shall examine 
the procedures undertaken when a civilian employee referred to in 
paragraph (1) becomes involuntarily absent as a result of a hostile 
action, or under circumstances suggesting that the involuntary absence 
is a result of a hostile action, and whose status is undetermined or who 
is unaccounted for, including procedures for--
            (A) search and rescue for the employee;
            (B) determining the status of the employee;
            (C) reviewing and changing the status of the employee;

[[Page 110 STAT. 353]]

            (D) determining the rights and benefits accorded to the 
        family of the employee; and
            (E) <<NOTE: Records.>> maintaining and providing appropriate 
        access to the records of the employee and the investigation into 
        the status of the employee.

    (4) <<NOTE: Reports.>> Not later than one year after the date of the 
enactment of this Act, the Secretary of State 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 study carried 
out by the Secretary under this subsection. The report shall include the 
recommendations, if any, of the Secretary for legislation to improve the 
procedures covered by the study.
SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR MILITARY 
                        SUPPORT.

    Section 102 of the National Security Act of 1947 (50 U.S.C. 403) is 
amended by adding at the end the following:
    ``(e) In the event that neither the Director nor Deputy Director of 
Central Intelligence is a commissioned officer of the Armed Forces, a 
commissioned officer of the Armed Forces appointed to the position of 
Associate Director of Central Intelligence for Military Support, while 
serving in such position, shall not be counted against the numbers and 
percentages of commissioned officers of the rank and grade of such 
officer authorized for the armed force of which such officer is a 
member.''.

      Subtitle G--Support for Non-Department of Defense Activities

SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

    (a) Repeal of Civil-Military Cooperative Action Program.--The 
following provisions of law are repealed:
            (1) Section 410 of title 10, United States Code.
            (2) Section 1081(a) of the National Defense Authorization 
        Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 410 
        note).

    (b) Repeal of Related Provision.--Section 1045 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 
U.S.C. 410 note), relating to a pilot outreach program to reduce demand 
for illegal drugs, is repealed.
    (c) Technical and Conforming Amendments.--Chapter 20 of title 10, 
United States Code, is amended--
            (1) by striking out the table of subchapters after the 
        chapter heading;
            (2) by striking out the subchapter heading for subchapter I; 
        and
            (3) by striking out the subchapter heading for subchapter II 
        and the table of sections following that subchapter heading.
SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT AND 
                        SERVICES FOR ELIGIBLE ORGANIZATIONS AND 
                        ACTIVITIES OUTSIDE THE DEPARTMENT OF 
                        DEFENSE.

    (a) In General.--(1) Chapter 101 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 110 STAT. 354]]

``Sec. 2012. Support and services for eligible organizations and 
                    activities outside Department of Defense

    ``(a) <<NOTE: Regulations.>> Authority To Provide Services and 
Support.--Under regulations prescribed by the Secretary of Defense, the 
Secretary of a military department may in accordance with this section 
authorize units or individual members of the armed forces under that 
Secretary's jurisdiction to provide support and services to non-
Department of Defense organizations and activities specified in 
subsection (e), but only if--
            ``(1) such assistance is authorized by a provision of law 
        (other than this section); or
            ``(2) the provision of such assistance is incidental to 
        military training.

    ``(b) Scope of Covered Activities Subject to Section.--This section 
does not--
            ``(1) apply to the provision by the Secretary concerned, 
        under regulations prescribed by the Secretary of Defense, of 
        customary community relations and public affairs activities 
        conducted in accordance with Department of Defense policy; or
            ``(2) prohibit the Secretary concerned from encouraging 
        members of the armed forces under the Secretary's jurisdiction 
        to provide volunteer support for community relations activities 
        under regulations prescribed by the Secretary of Defense.

    ``(c) Requirement for Specific Request.--Assistance under subsection 
(a) may only be provided if--
            ``(1) the assistance is requested by a responsible official 
        of the organization to which the assistance is to be provided; 
        and
            ``(2) the assistance is not reasonably available from a 
        commercial entity or (if so available) the official submitting 
        the request for assistance certifies that the commercial entity 
        that would otherwise provide such services has agreed to the 
        provision of such services by the armed forces.

    ``(d) Relationship to Military Training.--(1) Assistance under 
subsection (a) may only be provided if the following requirements are 
met:
            ``(A) The provision of such assistance--
                    ``(i) in the case of assistance by a unit, will 
                accomplish valid unit training requirements; and
                    ``(ii) in the case of assistance by an individual 
                member, will involve tasks directly related to the 
                specific military occupational specialty of the member.
            ``(B) The provision of such assistance will not adversely 
        affect the quality of training or otherwise interfere with the 
        ability of a member or unit of the armed forces to perform the 
        military functions of the member or unit.
            ``(C) The provision of such assistance will not result in a 
        significant increase in the cost of the training.

    ``(2) Subparagraph (A)(i) of paragraph (1) does not apply in a case 
in which the assistance to be provided consists primarily of military 
manpower and the total amount of such assistance in the case of a 
particular project does not exceed 100 man-hours.
    ``(e) Eligible Entities.--The following organizations and activities 
are eligible for assistance under this section:
            ``(1) Any Federal, regional, State, or local governmental 
        entity.

[[Page 110 STAT. 355]]

            ``(2) Youth and charitable organizations specified in 
        section 508 of title 32.
            ``(3) Any other entity as may be approved by the Secretary 
        of Defense on a case-by-case basis.

    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the provision of assistance under this section. 
The regulations shall include the following:
            ``(1) Rules governing the types of assistance that may be 
        provided.
            ``(2) Procedures governing the delivery of assistance that 
        ensure, to the maximum extent practicable, that such assistance 
        is provided in conjunction with, rather than separate from, 
        civilian efforts.
            ``(3) Procedures for appropriate coordination with civilian 
        officials to ensure that the assistance--
                    ``(A) meets a valid need; and
                    ``(B) does not duplicate other available public 
                services.
            ``(4) Procedures to ensure that Department of Defense 
        resources are not applied exclusively to the program receiving 
        the assistance.

    ``(g) Advisory Councils.--(1) The Secretary of Defense shall 
encourage the establishment of advisory councils at regional, State, and 
local levels, as appropriate, in order to obtain recommendations and 
guidance concerning assistance under this section from persons who are 
knowledgeable about regional, State, and local conditions and needs.
    ``(2) The advisory councils should include officials from relevant 
military organizations, representatives of appropriate local, State, and 
Federal agencies, representatives of civic and social service 
organizations, business representatives, and labor representatives.
    ``(3) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to such councils.
    ``(h) Construction of Provision.--Nothing in this section shall be 
construed as authorizing--
            ``(1) the use of the armed forces for civilian law 
        enforcement purposes or for response to natural or manmade 
        disasters; or
            ``(2) the use of Department of Defense personnel or 
        resources for any program, project, or activity that is 
        prohibited by law.''.

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

``2012. Support and services for eligible organizations and activities 
           outside Department of Defense.''.

SEC. 573.  <<NOTE: 32 USC 501 note.>> NATIONAL GUARD CIVILIAN 
                        YOUTH OPPORTUNITIES PILOT PROGRAM.

    (a) Termination.--The authority under subsection (a) of section 1091 
of the National Defense Authorization Act for Fiscal Year 1993 (Public 
Law 102-484; 32 U.S.C. 501 note) to carry out a pilot program under that 
section is hereby continued through the end of the 18-month period 
beginning on the date of the enactment of this Act and such authority 
shall terminate as of the end of that period.
    (b) Limitation on Number of Programs.--During the period beginning 
on the date of the enactment of this Act and ending

[[Page 110 STAT. 356]]

on the termination of the pilot program under subsection (a), the number 
of programs carried out under subsection (d) of that section as part of 
the pilot program may not exceed the number of such programs as of 
September 30, 1995.
SEC. 574.  <<NOTE: 10 USC 2012 note.>> TERMINATION OF FUNDING FOR 
                        OFFICE OF CIVIL-MILITARY PROGRAMS IN 
                        OFFICE OF THE SECRETARY OF DEFENSE.

    No funds may be obligated or expended after the date of the 
enactment of this Act (1) for the office that as of the date of the 
enactment of this Act is designated, within the Office of the Assistant 
Secretary of Defense for Reserve Affairs, as the Office of Civil-
Military Programs, or (2) for any other entity within the Office of the 
Secretary of Defense that has an exclusive or principal mission of 
providing centralized direction for activities under section 2012 of 
title 10, United States Code, as added by section 572.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>> MILITARY PAY RAISE FOR FISCAL YEAR 
            1996.

    (a) Rescission of Prior Section 1009 Adjustment.--The adjustment 
made as of January 1, 1996, pursuant to section 4 of Executive Order No. 
12984 (issued December 28, 1995), in elements of compensation of members 
of the uniformed services pursuant to section 1009 of title 37, United 
States Code, is hereby rescinded.
    (b) Increase in Basic Pay and BAS.--The rates of basic pay and basic 
allowance for subsistence of members of the uniformed services, as in 
effect on December 31, 1995, are hereby increased by 2.4 percent.
    (c) Increase in BAQ.--The rates of basic allowance for quarters of 
members of the uniformed services, as in effect on December 31, 1995, 
are hereby increased by 5.2 percent.
    (d) Effective Date.--This section shall take effect as of January 1, 
1996.
SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR 
                        MEMBERS RESIDING WITHOUT DEPENDENTS IN 
                        GOVERNMENT QUARTERS.

    (a) Percentage Limitation.--Subsection (b) of section 402 of title 
37, United States Code, is amended by adding after the last sentence the 
following new paragraph:
    ``(4) In the case of enlisted members of the Army, Navy, Air Force, 
or Marine Corps who, when present at their permanent duty station, 
reside without dependents in Government quarters, the Secretary 
concerned may not provide a basic allowance for subsistence to more than 
12 percent of such members under the jurisdiction of the Secretary 
concerned. The Secretary concerned may exceed such percentage if the 
Secretary determines that compliance would increase costs to the 
Government, would impose financial hardships on members otherwise 
entitled to a basic allowance for subsistence, or would reduce the 
quality of life for such members. This paragraph shall not apply to 
members described in the first sentence when the members are not 
residing at their permanent

[[Page 110 STAT. 357]]

duty station. The Secretary concerned shall achieve the percentage 
limitation specified in this paragraph as soon as possible after the 
date of the enactment of this paragraph, but in no case later than 
September 30, 1996.''.
    (b) Stylistic Amendments.--Such subsection is further

amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C);
            (2) by inserting ``(1)'' after ``(b)'';
            (3) by designating the text composed of the second, third, 
        and fourth sentences as paragraph (2); and
            (4) by designating the text composed of the fifth and sixth 
        sentences as paragraph (3).

    (c) Conforming Amendments.--(1) Subsection (e) of such section is 
amended--
            (A) in paragraph (1), by striking out ``the third sentence 
        of subsection (b)'' and inserting in lieu thereof ``subsection 
        (b)(2)''; and
            (B) in paragraph (2), by striking out ``subsection (b)'' and 
        inserting in lieu thereof ``subsection (b)(2)''.

    (2) Section 1012 of title 37, United States Code, is amended by 
striking out ``the last sentence of section 402(b)'' and inserting in 
lieu thereof ``section 402(b)(3)''.
    (d) Report Required.--Not later than March 31, 1996, the Secretary 
of Defense shall submit to Congress a report identifying, for the Army, 
Navy, Air Force, and Marine Corps--
            (1) the number of members who reside without dependents in 
        Government quarters at their permanent duty stations and receive 
        a basic allowance for subsistence under section 402 of title 37, 
        United States Code;
            (2) such number as a percentage of the total number of 
        members who reside without dependents in Government

        quarters;
            (3) a recommended maximum percentage of the members residing 
        without dependents in Government quarters at their permanent 
        duty station who should receive a basic allowance for 
        subsistence; and
            (4) the reasons such maximum percentage is recommended.
SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD OF 
                        ASSIGNMENT TO INADEQUATE QUARTERS.

    (a) Election Authorized.--Section 403(b) of title 37, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the second sentence as paragraph (2) and, 
        as so designated, by striking out ``However, subject'' and 
        inserting in lieu thereof ``Subject''; and
            (3) by adding at the end the following new paragraph:

    ``(3) A member without dependents who is in pay grade E-6 and who is 
assigned to quarters of the United States that do not meet the minimum 
adequacy standards established by the Department of Defense for members 
in such pay grade, or to a housing facility under the jurisdiction of a 
uniformed service that does not meet such standards, may elect not to 
occupy such quarters or facility and instead to receive the basic 
allowance for quarters prescribed for the member's pay grade by this 
section.''.

[[Page 110 STAT. 358]]

    (b) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made 
by this section shall take effect on July 1, 1996.
SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS IN 
                        PAY GRADE E-6 WHO ARE ASSIGNED TO SEA 
                        DUTY.

    (a) Payment Authorized.--Section 403(c)(2) of title 37, United 
States Code, is amended--
            (1) in the first sentence, by striking out ``E-7'' and 
        inserting in lieu thereof ``E-6''; and
            (2) in the second sentence, by striking out ``E-6'' and 
        inserting in lieu thereof ``E-5''.

    (b) <<NOTE: 37 USC 403 note.>> Effective Date.--The amendments made 
by this section shall take effect on July 1, 1996.
SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING ALLOWANCE 
                        FOR CERTAIN MEMBERS.

    (a) Limitation on Reduction in VHA.--(1) Subsection (c)(3) of 
section 403a of title 37, United States Code, is amended by adding at 
the end the following new sentence: ``However, so long as a member of a 
uniformed service retains uninterrupted eligibility to receive a 
variable housing allowance within an area and the member's certified 
housing costs are not reduced (as indicated by certifications provided 
by the member under subsection (b)(4)), the monthly amount of a variable 
housing allowance under this section for the member within that area may 
not be reduced as a result of systematic adjustments required by changes 
in housing costs within that area.''.
    (2) <<NOTE: Applicability. 37 USC 403a note.>> The amendment made by 
paragraph (1) shall apply for fiscal years after fiscal year 1995.

    (b) Effect on Total Amount Available for VHA.--Subsection (d)(3) of 
such section is amended by inserting after the first sentence the 
following new sentence: ``In addition, the total amount determined under 
paragraph (1) shall be adjusted to ensure that sufficient amounts are 
available to allow payment of any additional amounts of variable housing 
allowance necessary as a result of the requirements of the second 
sentence of subsection (c)(3).''.
    (c) Report on Implementation.--Not later than June 1, 1996, the 
Secretary of Defense shall submit to Congress a report describing the 
procedures to be used to implement the amendments made by this section 
and the costs of such amendments.
    (d) <<NOTE: Reports.>> Resolving VHA Inadequacies in High Housing 
Cost Areas.--If the Secretary of Defense determines that, despite the 
amendments made by this section, inadequacies exist in the provision of 
variable housing allowances under section 403a of title 37, United 
States Code, the Secretary shall submit to Congress a report containing 
a legislative proposal to address the inadequacies. The Secretary shall 
make the determination required by this subsection and submit the 
report, if necessary, not later than May 31, 1996.
SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR FAMILY 
                        SEPARATION ALLOWANCE.

    Section 427(b)(4) of title 37, United States Code, is amended in the 
first sentence by inserting ``paragraph (1)(A) of'' after ``not entitled 
to an allowance under''.

[[Page 110 STAT. 359]]

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1997''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1997''.
    (c) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1997''.
    (d) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof ``September 30, 
1997''.
    (e) Prior Service Enlistment Bonus.--Section 308i(i) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1997''.
SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 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, 1996'' and inserting in lieu thereof ``September 30, 1997''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1997''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof ``September 30, 
1997''.
SEC. 613. EXTENSION OF AUTHORITY 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, 1995,'' 
and inserting in lieu thereof ``September 30, 1997''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1997''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of title 37, United States Code, are each

amended by striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.
    (d) Special Pay for Enlisted Members of the Selected Reserve 
Assigned to Certain High Priority Units.--Section 308d(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1997''.

[[Page 110 STAT. 360]]

    (e) 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, 1996'' and inserting in lieu 
thereof ``September 30, 1997''.
    (f) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1997''.
    (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
37, United States Code, is amended by striking out ``October 1, 1996'' 
and inserting in lieu thereof ``October 1, 1997''.
    (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, 1996'' and 
inserting in lieu thereof ``October 1, 1997''.
    (i) <<NOTE: 37 USC 3016 note.>> Coverage of Period of Lapsed 
Agreement Authority.--(1) In the case of an officer described in section 
301b(b) of title 37, United States Code, who executes an agreement 
described in paragraph (2) during the 90-day period beginning on the 
date of the enactment of this Act, the Secretary concerned may treat the 
agreement for purposes of the retention bonus authorized under the 
agreement as having been executed and accepted on the first date on 
which the officer would have qualified for such an agreement had the 
amendment made by subsection (a) taken effect on October 1, 1995.

    (2) An agreement referred to in this subsection is a service 
agreement with the Secretary concerned that is a condition for the 
payment of a retention bonus under section 301b of title 37, United 
States Code.
    (3) For purposes of this subsection, the term ``Secretary 
concerned'' has the meaning given that term in section 101(5) of title 
37, United States Code.
SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITICALLY 
                        SHORT WARTIME HEALTH SPECIALISTS IN THE 
                        SELECTED RESERVES.

    (a) Special Pay Authorized.--(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302f the following 
new section:
``Sec. 302g. Special pay: Selected Reserve health care 
                  professionals in critically short wartime 
                  specialties

    ``(a) Special Pay Authorized.--An officer of a reserve component of 
the armed forces described in subsection (b) who executes a written 
agreement under which the officer agrees to serve in the Selected 
Reserve of an armed force for a period of not less than one year nor 
more than three years, beginning on the date the officer accepts the 
award of special pay under this section, may be paid special pay at an 
annual rate not to exceed $10,000.
    ``(b) Eligible Officers.--An officer referred to in subsection (a) 
is an officer in a health care profession who is qualified in a 
specialty designated by regulations as a critically short wartime 
specialty.
    ``(c) Time for Payment.--Special pay under this section shall be 
paid annually at the beginning of each twelve-month period for which the 
officer has agreed to serve.

[[Page 110 STAT. 361]]

    ``(d) Refund Requirement.--An officer who voluntarily terminates 
service in the Selected Reserve of an armed force before the end of the 
period for which a payment was made to such officer under this section 
shall refund to the United States the full amount of the payment made 
for the period on which the payment was based.
    ``(e) Inapplicability of Discharge in Bankruptcy.--A discharge in 
bankruptcy under title 11 that is entered less than five years after the 
termination of an agreement under this section does not discharge the 
person receiving special pay under the agreement from the debt arising 
under the agreement.
    ``(f) Termination of Agreement Authority.--No agreement under this 
section may be entered into after September 30, 1997.''.

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

``302g. Special pay: Selected Reserve health care professionals in 
           critically short wartime specialties.''.

    (b) Conforming Amendment.--Section 303a of title 37, United States 
Code, is amended by striking out ``302, 302a, 302b, 302c, 302d, 302e,'' 
each place it appears and inserting in lieu thereof ``302 through 
302g,''.
    (c) Conforming Repeal.--(1) Section 613 of the National Defense 
Authorization Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302 
note) is repealed.
    (2) <<NOTE: 37 USC 302 note.>> The provisions of section 613 of the 
National Defense Authorization Act, Fiscal Year 1989, as in effect on 
the day before the date of the enactment of this Act, shall continue to 
apply to agreements entered into under such section before such date.
SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS AND 
                        ENLISTED MEMBERS SERVING AS AIR WEAPONS 
                        CONTROLLERS.

    (a) Inclusion of Additional Members.--Subsection (a)(11) of section 
301 of title 37, United States Code, is amended by striking out ``an 
officer (other than a warrant officer)'' and inserting in lieu thereof 
``a member''.
    (b) Calculation of Hazardous Duty Incentive Pay.--The table in 
subparagraph (A) of subsection (c)(2) of such section is amended to read 
as follows:

----------------------------------------------------------------------------------------------------------------
                                                   Years of service as an air weapons controller
                                 -------------------------------------------------------------------------------
           ``Pay grade              2 or
                                    less     Over 2    Over 3    Over 4    Over 6    Over 8    Over 10
----------------------------------------------------------------------------------------------------------------
``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200
``O-6...........................       225       250       300       325       350       350       350
``O-5...........................       200       250       300       325       350       350       350
``O-4...........................       175       225       275       300       350       350       350
``O-3...........................       125       156       188       206       350       350       350
``O-2...........................       125       156       188       206       250       300       300
``O-1...........................       125       156       188       206       250       250       250
``W-4...........................       200       225       275       300       325       325       325
``W-3...........................       175       225       275       300       325       325       325
``W-2...........................       150       200       250       275       325       325       325
``W-1...........................       100       125       150       175       325       325       325
``E-9...........................       200       225       250       275       300       300       300
``E-8...........................       200       225       250       275       300       300       300
``E-7...........................       175       200       225       250       275       275       275
``E-6...........................       156       175       200       225       250       250       250
``E-5...........................       125       156       175       188       200       200       200
``E-4 and below.................       125       156       175       188       200       200       200
                                 -------------------------------------------------------------------------------


[[Page 110 STAT. 362]]


----------------------------------------------------------------------------------------------------------------
                                             Years of service as an air weapons controller--Continued
     ``Pay grade--Continued      -------------------------------------------------------------------------------
                                   Over 12   Over 14   Over 16   Over 18   Over 20   Over 22   Over 24   Over 25
----------------------------------------------------------------------------------------------------------------
``O-7 and above.................      $200      $200      $200      $200      $200      $200      $200      $110
``O-6...........................       350       350       350       350       300       250       250       225
``O-5...........................       350       350       350       350       300       250       250       225
``O-4...........................       350       350       350       350       300       250       250       225
``O-3...........................       350       350       350       300       275       250       225       200
``O-2...........................       300       300       300       275       245       210       200       180
``O-1...........................       250       250       250       245       210       200       180       150
``W-4...........................       325       325       325       325       276       250       225       200
``W-3...........................       325       325       325       325       325       250       225       200
``W-2...........................       325       325       325       325       275       250       225       200
``W-1...........................       325       325       325       325       275       250       225       200
``E-9...........................       300       300       300       300       275       230       200       200
``E-8...........................       300       300       300       300       265       230       200       200
``E-7...........................       300       300       300       300       265       230       200       200
``E-6...........................       300       300       300       300       265       230       200       200
``E-5...........................       250       250       250       250       225       200       175       150
``E-4 and below.................       200       200       200       200       175       150       125    125''.
----------------------------------------------------------------------------------------------------------------

    (c) Conforming Amendments.--Subsection (c)(2) of such section is 
further amended--
            (1) by striking out ``an officer'' each place it appears and 
        inserting in lieu thereof ``a member''; and
            (2) by striking out ``the officer'' each place it appears 
        and inserting in lieu thereof ``the member''.

SEC. 616. AVIATION CAREER INCENTIVE PAY.

    (a) Years of Operational Flying Duties Required.--Paragraph (4) of 
section 301a(a) of title 37, United States Code, is amended in the first 
sentence by striking out ``9'' and inserting in lieu thereof ``8''.
    (b) Exercise of Waiver Authority.--Paragraph (5) of such section is 
amended by inserting after the second sentence the following new 
sentence: ``The Secretary concerned may not delegate the authority in 
the preceding sentence to permit the payment of incentive pay under this 
subsection.''.
SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY FOR 
                        NURSES.

    Section 302c(d)(1) of title 37, United States Code, is amended--
            (1) by striking out ``or'' after ``Air Force,''; and
            (2) by inserting before the semicolon the following: ``, an 
        officer of the Nurse Corps of the Army or Navy, or an officer of 
        the Air Force designated as a nurse''.
SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREW 
                        MEMBERS OF SHIPS DESIGNATED AS TENDERS.

    Subparagraph (A) of section 305a(d)(1) of title 37, United States 
Code, is amended to read as follows:
            ``(A) while permanently or temporarily assigned to a ship, 
        ship-based staff, or ship-based aviation unit and--
                    ``(i) while serving on a ship the primary mission of 
                which is accomplished while under way;
                    ``(ii) while serving as a member of the off-crew of 
                a two-crewed submarine; or
                    ``(iii) while serving as a member of a tender-class 
                ship (with the hull classification of submarine or 
                destroyer); or''.

[[Page 110 STAT. 363]]

SEC. 619. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY 
                        FOR ENLISTED MEMBERS SERVING AS 
                        RECRUITERS.

    (a) Special Maximum Rate for Recruiters.--Section 307(a) of title 
37, United States Code, is amended by adding at the end the following 
new sentence: ``In the case of a member who is serving as a military 
recruiter and is eligible for special duty assignment pay under this 
subsection on account of such duty, the Secretary concerned may increase 
the monthly rate of special duty assignment pay for the member to not 
more than $375.''.
    (b) <<NOTE: 37 USC 307 note.>> Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1996.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. REPEAL OF REQUIREMENT REGARDING CALCULATION OF 
                        ALLOWANCES ON BASIS OF MILEAGE TABLES.

    Section 404(d)(1)(A) of title 37, United States Code, is amended by 
striking out ``, based on distances established over the shortest 
usually traveled route, under mileage tables prepared under the 
direction of the Secretary of Defense''.

SEC. 622. DEPARTURE ALLOWANCES.

    (a) Eligibility When Evacuation Authorized But Not Ordered.--Section 
405a(a) of title 37, United States Code, is amended by striking out 
``ordered'' each place it appears and inserting in lieu thereof 
``authorized or ordered''.
    (b) <<NOTE: 37 USC 405a note.>> Application of Amendment.--The 
amendment made by subsection (a) shall apply with respect to persons 
authorized or ordered to depart as described in section 405a(a) of title 
37, United States Code, on or after October 1, 1995.
SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER'S 
                        STATION OVERSEAS AFTER LOSS OF DEPENDENT 
                        STATUS WHILE OVERSEAS.

    Section 406(h)(1) of title 37, United States Code, is amended in the 
last sentence--
            (1) by striking out ``who became 21 years of age'' and 
        inserting in lieu thereof ``who, by reason of age or graduation 
        from (or cessation of enrollment in) an institution of higher 
        education, would otherwise cease to be a dependent of the 
        member''; and
            (2) by inserting ``still'' after ``shall''.
SEC. 624. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN 
                        CONNECTION WITH BASE REALIGNMENTS AND 
                        CLOSURES.

    (a) Dislocation Allowance Authorized.--Subsection (a) of section 407 
of title 37, United States Code, is amended--
            (1) by striking out ``or'' at the end of paragraph (3);
            (2) by striking out the period at the end of paragraph 
        (4)(B) and inserting in lieu thereof ``; or''; and
            (3) by inserting after paragraph (4)(B) the following new 
        paragraph:

[[Page 110 STAT. 364]]

            ``(5) the member is ordered to move in connection with the 
        closure or realignment of a military installation and, as a 
        result, the member's dependents actually move or, in the case of 
        a member without dependents, the member actually moves.''.

    (b) Conforming Amendments.--(1) The last sentence of such subsection 
is amended--
            (A) by striking out ``clause (3) or (4)(B)'' and inserting 
        in lieu thereof ``paragraph (3) or (4)(B)''; and
            (B) by striking out ``clause (1)'' and inserting in lieu 
        thereof ``paragraph (1) or (5)''.

    (2) Subsection (b) of such section is amended--
            (A) by striking out ``subsection (a)(3) or (a)(4)(B)'' in 
        the first sentence and inserting in lieu thereof ``paragraph (3) 
        or (4)(B) of subsection (a)''; and
            (B) by striking out ``subsection (a)(1)'' in the second 
        sentence and inserting in lieu thereof ``paragraph (1) or (5) of 
        subsection (a)''.

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

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                        ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, 
                        AND 1998.

    (a) Adjustment of Effective Dates.--Subparagraph (B) of section 
1401a(b)(2) of title 10, United States Code, is amended to read as 
follows:
                    ``(B) Special rules for fiscal years 1996 and 
                1998.--
                          ``(i) Fiscal year 1996.--In the case of the 
                      increase in retired pay that, pursuant to 
                      paragraph (1), becomes effective on December 1, 
                      1995, the initial month for which such increase is 
                      payable as part of such retired pay shall 
                      (notwithstanding such December 1 effective date) 
                      be March 1996.
                          ``(ii) Fiscal year 1998.--In the case of the 
                      increase in retired pay that, pursuant to 
                      paragraph (1), becomes effective on December 1, 
                      1997, the initial month for which such increase is 
                      payable as part of such retired pay shall 
                      (notwithstanding such December 1 effective date) 
                      be September 1998.''.

    (b) <<NOTE: 10 USC 1401a note.>> Contingent Alternative Date for 
Fiscal Year 1998.--(1) If a civil service retiree cola that becomes 
effective during fiscal year 1998 becomes effective on a date other than 
the date on which a military retiree cola during that fiscal year is 
specified to become effective under subparagraph (B) of section 
1401a(b)(2) of title 10, United States Code, as amended by subsection 
(a), then the increase in military retired and retainer pay shall become 
payable as part of such retired and retainer pay effective on the same 
date on which such civil service retiree cola becomes effective 
(notwithstanding the date otherwise specified in such subparagraph (B)).

    (2) Paragraph (1) does not apply with respect to the retired pay of 
a person retired under chapter 61 of title 10, United States Code.
    (3) For purposes of this subsection:

[[Page 110 STAT. 365]]

            (A) The term ``civil service retiree cola'' means an 
        increase in annuities under the Civil Service Retirement System 
        either under section 8340(b) of title 5, United States Code, or 
        pursuant to a law providing a general increase in such 
        annuities.
            (B) The term ``military retiree cola'' means an adjustment 
        in retired and retainer pay pursuant to section 1401a(b) of 
        title 10, United States Code.

    (c) Repeal of Prior Conditional Enactment.--Section 8114A(b) of 
Public Law 103-335 (108 Stat. 2648) <<NOTE: 10 USC 1401a, 1401a note.>>  
is repealed.
SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR RESERVES 
                        RECEIVING CERTAIN COURT-MARTIAL SENTENCES.

    (a) In General.--(1) Chapter 1223 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 12740. Eligibility: denial upon certain punitive discharges 
                      or dismissals

    ``A person who--
            ``(1) is convicted of an offense under the Uniform Code of 
        Military Justice (chapter 47 of this title) and whose sentence 
        includes death; or
            ``(2) is separated pursuant to sentence of a court-martial 
        with a dishonorable discharge, a bad conduct discharge, or (in 
        the case of an officer) a dismissal,

is not eligible for retired pay under this chapter.''.

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

``12740. Eligibility: denial upon certain punitive discharges or 
           dismissals.''.

  (b) <<NOTE: 10 USC 12740 note.>> Effective Date.--Section 12740 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to court-martial sentences adjudged after the date of the 
enactment of this Act.
SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY 
                        SURVIVING SPOUSES.

    (a) Study Required.--(1) The Secretary of Defense shall conduct a 
study to determine the number of potential beneficiaries there would be 
if Congress were to enact authority for the Secretary of the military 
department concerned to pay an annuity to the qualified surviving spouse 
of each member of the Armed Forces who--
            (A) died before March 21, 1974, and was entitled to retired 
        or retainer pay on the date of death; or
            (B) was a member of a reserve component who died during the 
        period beginning on September 21, 1972, and ending on October 1, 
        1978, and at the time of death would have been entitled to 
        retired pay under chapter 67 of title 10, United States Code, 
        but for the fact that he was under 60 years of age.

    (2) A qualified surviving spouse for purposes of paragraph (1) is a 
surviving spouse who has not remarried and who is not eligible for an 
annuity under section 4 of Public Law 92-425

(10 U.S.C. 1448 note).
    (b) Required Determinations.--As part of the study under subsection 
(a), the Secretary shall determine the following:

[[Page 110 STAT. 366]]

            (1) The number of unremarried surviving spouses of deceased 
        members and deceased former members of the Armed Forces referred 
        to in subparagraph (A) of subsection (a)(1) who would be 
        eligible for an annuity under authority described in such 
        subsection.
            (2) The number of unremarried surviving spouses of deceased 
        members and deceased former members of reserve components 
        referred to in subparagraph (B) of subsection (a)(1) who would 
        be eligible for an annuity under authority described in such 
        subsection.
            (3) The number of persons in each group of unremarried 
        former spouses described in paragraphs (1) and (2) who are 
        receiving a widow's insurance benefit or a widower's insurance 
        benefit under title II of the Social Security Act on the basis 
        of employment of a deceased member or deceased former member 
        referred to in subsection (a)(1).

    (c) Report.--Not later than March 1, 1996, 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 study under this section. The Secretary shall 
include in the report a recommendation on the amount of the annuity that 
should be authorized to be paid under any authority described in 
subsection (a)(1), together with a recommendation on whether the annuity 
should be adjusted annually to offset increases in the cost of living.
SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO 
                        WORLD WAR II VETERANS WHO SERVED AS 
                        GUERRILLA FIGHTERS IN THE PHILIPPINES.

    (a) In General.--The Secretary of the military department concerned 
shall pay, upon request, to an individual described in subsection (b) 
the amount determined with respect to that individual under subsection 
(c).
    (b) Covered Individuals.--A payment under subsection (a) shall be 
made to any individual who as a member of the Armed Forces during World 
War II--
            (1) was captured on the Island of Bataan in the territory of 
        the Philippines by Japanese forces;
            (2) participated in the Bataan Death March;
            (3) escaped from captivity; and
            (4) served as a guerrilla fighter in the Philippines during 
        the period from January 1942 through February 1945.

    (c) Amount To Be Paid.--The amount of a payment under subsection (a) 
shall be the amount of quarters and subsistence allowance which accrued 
to an individual described in subsection (b) during the period specified 
in paragraph (4) of subsection (b) and which was not paid to that 
individual. The Secretary shall apply interest compounded at the three-
month Treasury bill rate.
    (d) Payment to Survivors.--In the case of any individual described 
in subsection (b) who is deceased, payment under this section with 
respect to that individual shall be made to that individual's nearest 
surviving relative, as determined by the Secretary concerned.
SEC. 635.  <<NOTE: 10 USC 1448 note.>> AUTHORITY FOR RELIEF FROM 
                        PREVIOUS OVERPAYMENTS UNDER MINIMUM INCOME 
                        WIDOWS PROGRAM.

    (a) Authority.--The Secretary of Defense may waive recovery by the 
United States of any overpayment by the United States

[[Page 110 STAT. 367]]

described in subsection (b). In the case of any such waiver, any debt to 
the United States arising from such overpayment is forgiven.
    (b) Covered Overpayments.--Subsection (a) applies in the case of an 
overpayment by the United States that--
            (1) was made before the date of the enactment of this Act 
        under section 4 of Public Law 92-425 (10 U.S.C. 1448 note); and
            (2) is attributable to failure by the Department of Defense 
        to apply the eligibility provisions of subsection (a) of such 
        section in the case of the person to whom the overpayment was 
        made.
SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF 
                        THE ARMED FORCES SEPARATED FOR DEPENDENT 
                        ABUSE.

    (a) Coverage of Program.--Subsection (a) of section 1059 of title 
10, United States Code, is amended by adding at the end the following: 
``Upon establishment of such a program, the program shall apply in the 
case of each such member described in subsection (b) who is under the 
jurisdiction of the Secretary establishing the program.''.
    (b) Clarification of Payment to Dependents of Members Not 
Discharged.--Subsection (d) of such section is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking out ``any case of a separation from 
                active duty as described in subsection (b)'' and 
                inserting in lieu thereof ``the case of any individual 
                described in subsection (b)''; and
                    (B) by striking ``former member'' and inserting in 
                lieu thereof ``individual'';
            (2) in paragraph (1)--
                    (A) by striking out ``former member'' and inserting 
                in lieu thereof ``individual''; and
                    (B) by striking out ``member'' and inserting in lieu 
                thereof ``individual'';
            (3) in paragraph (2), by striking out ``former member'' both 
        places it appears and inserting in lieu thereof ``individual 
        described in subsection (b)'';
            (4) in paragraph (3), by striking out ``former member'' and 
        inserting in lieu thereof ``individual described in subsection 
        (b)''; and
            (5) in paragraph (4), by striking out ``member'' both places 
        it appears and inserting in lieu thereof ``individual described 
        in subsection (b)''.

    (c) Effective Date.--Section 554(b) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) is 
amended--
            (1) in paragraph (1), by striking out ``on or after the date 
        of the enactment of this Act'' and inserting in lieu thereof 
        ``after November 29, 1993''; and
            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following:

    ``(2) Payments of transitional compensation under that section in 
the case of any person eligible to receive payments under that section 
shall be made for each month after November 1993 for which that person 
may be paid transitional compensation in accordance with that 
section.''.

[[Page 110 STAT. 368]]

                        Subtitle E--Other Matters

SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL LEAVE 
                        ACCRUED.

    (a) Inapplicability of 60-Day Limitation.--Section 501(d) of title 
37, United States Code, is amended--
            (1) in paragraph (1), by striking out the third sentence; 
        and
            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following new paragraph:

    ``(2) The limitations in the second sentence of subsection (b)(3), 
subsection (f), and the second sentence of subsection (g) shall not 
apply with respect to a payment made under this subsection.''.
    (b) Conforming Amendment.--Section 501(f) of such title is amended 
by striking out ``, (d),'' in the first sentence.
SEC. 642. REPEAL OF REPORTING REQUIREMENTS REGARDING COMPENSATION 
                        MATTERS.

    (a) Report on Travel and Transportation Allowances for Dependents.--
(1) Section 406 of title 37, United States Code, is amended--
            (A) by striking out subsection (i); and
            (B) by redesignating subsections (j), (k), (l), (m), and (n) 
        as subsections (i), (j), (k), (l), and (m), respectively.

    (2) Section 2634(d) of title 10, United States Code, is amended by 
striking out ``section 406(l) of title 37'' and inserting in lieu 
thereof ``section 406(k) of title 37''.
    (b) Annual Review of Pay and Allowances.--Section 1008(a) of title 
37, United States Code, is amended by striking out the second sentence.
    (c) Report on Quadrennial Review of Adjustments in Compensation.--
Section 1009(f) of such title is amended by striking out ``of this 
title,'' and all that follows through the period at the end and 
inserting in lieu thereof ``of this title.''.
SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN GARNISHMENT 
                        ACTIONS.

    (a) In General.--Subsection (j) of section 5520a of title 5, United 
States Code, is amended by striking out paragraph (2) and inserting in 
lieu thereof the following new paragraph:
    ``(2) Such regulations shall provide that an agency's administrative 
costs incurred in executing legal process to which the agency is subject 
under this section shall be deducted from the amount withheld from the 
pay of the employee concerned pursuant to the legal process.''.
    (b) Involuntary Allotments of Pay of Members of the Uniformed 
Services.--Subsection (k) of such section is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new

        paragraph:

    ``(3) Regulations under this subsection may also provide that the 
administrative costs incurred in establishing and maintaining an 
involuntary allotment be deducted from the amount withheld from the pay 
of the member of the uniformed services concerned pursuant to such 
regulations.''.

[[Page 110 STAT. 369]]

    (c) Disposition of Amounts Withheld for Administrative Expenses.--
Such section is further amended by adding at the end the following:
    ``(l) The amount of an agency's administrative costs deducted under 
regulations prescribed pursuant to subsection (j)(2) or (k)(3) shall be 
credited to the appropriation, fund, or account from which such 
administrative costs were paid.''.
SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED OFFICERS 
                        PRIVILEGES PROVIDED FOR SENIOR 
                        NONCOMMISSIONED OFFICERS.

    (a) Report Required.--Not later than February 1, 1996, the Secretary 
of Defense shall submit to Congress a report containing the 
determinations of the Secretary regarding whether, in order to improve 
the working conditions of noncommissioned officers in pay grades E-5 and 
E-6, any of the privileges afforded noncommissioned officers in any of 
the pay grades above E-6 should be extended to noncommissioned officers 
in pay grades E-5 and

E-6.
    (b) Specific Recommendation Regarding Election of BAS.--The 
Secretary shall include in the report a determination on whether 
noncommissioned officers in pay grades E-5 and
E-6 should be afforded the same privilege as noncommissioned officers in 
pay grades above E-6 to elect to mess separately and receive the basic 
allowance for subsistence.
    (c) Additional Matters.--The report shall also contain a discussion 
of the following matters:
            (1) The potential costs of extending additional privileges 
        to noncommissioned officers in pay grades E-5 and E-6.
            (2) The effects on readiness that would result from 
        extending the additional privileges.
            (3) The options for extending the privileges on an 
        incremental basis over an extended period.

    (d) Recommended Legislation.--The Secretary shall include in the 
report any recommended legislation that the Secretary considers 
necessary in order to authorize extension of a privilege as determined 
appropriate under subsection (a).
SEC. 645. STUDY REGARDING JOINT PROCESS FOR DETERMINING LOCATION 
                        OF RECRUITING STATIONS.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
regarding the feasibility of--
            (1) using a joint process among the Armed Forces for 
        determining the location of recruiting stations and the number 
        of military personnel required to operate such stations; and
            (2) basing such determinations on market research and 
        analysis conducted jointly by the Armed Forces.

    (b) Report.--Not later than March 31, 1996, the Secretary of Defense 
shall submit to Congress a report describing the results of the study. 
The report shall include a recommended method for measuring the 
efficiency of individual recruiting stations, such as cost per accession 
or other efficiency standard, as determined by the Secretary.
SEC. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN'S GROUP LIFE 
                        INSURANCE.

     <<NOTE: Effective date.>> Effective April 1, 1996, section 1967 of 
title 38, United States Code, is amended--

[[Page 110 STAT. 370]]

            (1) in subsections (a) and (c), by striking out ``$100,000'' 
        each place it appears and inserting in lieu thereof in each 
        instance ``$200,000'';
            (2) by striking out subsection (e); and
            (3) by redesignating subsection (f) as subsection (e).
SEC. 647. TERMINATION OF SERVICEMEN'S GROUP LIFE INSURANCE FOR 
                        MEMBERS OF THE READY RESERVE WHO FAIL TO 
                        PAY PREMIUMS.

    (a) Authority.--Section 1969(a)(2) of title 38, United States Code, 
is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:

    ``(B) If an individual who is required pursuant to subparagraph (A) 
to make a direct remittance of costs to the Secretary concerned fails to 
make the required remittance within 60 days of the date on which such 
remittance is due, such individual's insurance with respect to which 
such remittance is required shall be terminated by the Secretary 
concerned. <<NOTE: Notice. Effective date.>> Such termination shall be 
made by written notice to the individual's official address and shall be 
effective 60 days after the date of such notice. Such termination of 
insurance may be vacated if, before the effective date of termination, 
the individual remits all amounts past due for such insurance and 
demonstrates to the satisfaction of the Secretary concerned that the 
failure to make timely remittances was justifiable.''.

    (b) Conforming Amendment.--Section 1968(a) is amended by inserting 
``(or discontinued pursuant to section 1969(a)(2)(B) of this title)'' in 
the matter preceding paragraph (1) after ``upon the written request of 
the insured''.
    (c) <<NOTE: 38 USC 1968 note.>> Effective Date.--The amendments made 
by this section shall take effect on April 1, 1996.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE PHYSICAL 
                        EXAMINATIONS AND IMMUNIZATIONS UNDER 
                        CHAMPUS.

    Section 1079(a) of title 10, United States Code, is amended by 
striking out paragraph (2) and inserting in lieu thereof the following 
new paragraph:
            ``(2) consistent with such regulations as the Secretary of 
        Defense may prescribe regarding the content of health promotion 
        and disease prevention visits, the schedule of pap smears and 
        mammograms, and the types and schedule of immunizations--
                    ``(A) for dependents under six years of age, both 
                health promotion and disease prevention visits and 
                immunizations may be provided; and
                    ``(B) for dependents six years of age or older, 
                health promotion and disease prevention visits may be 
                provided in connection with immunizations or with 
                diagnostic or preventive pap smears and mammograms;''.

[[Page 110 STAT. 371]]

SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND 
                        DEATH AND DISABILITY BENEFITS FOR CERTAIN 
                        RESERVES.

    (a) Medical and Dental Care.--Section 1074a(a) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(3) Each member of the armed forces who incurs or 
        aggravates an injury, illness, or disease in the line of duty 
        while remaining overnight, between successive periods of 
        inactive-duty training, at or in the vicinity of the site of the 
        inactive-duty training, if the site is outside reasonable 
        commuting distance from the member's residence.''.

    (b) Recovery, Care, and Disposition of Remains.--Section 1481(a)(2) 
of title 10, United States Code, is amended--
            (1) in subparagraph (C), by striking out ``or'' at the end 
        of the subparagraph;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) remaining overnight, between successive 
                periods of inactive-duty training, at or in the vicinity 
                of the site of the inactive-duty training, if the site 
                is outside reasonable commuting distance from the 
                member's residence; or''.

    (c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of section 204 
of title 37, United States Code, is amended--
            (A) in subparagraph (B), by striking out ``or'' at the end 
        of the subparagraph;
            (B) in subparagraph (C), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (C) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) in line of duty while remaining overnight, between 
        successive periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, if the site 
        is outside reasonable commuting distance from the member's 
        residence.''.

    (2) Subsection (h)(1) of such section is amended--
            (A) in subparagraph (B), by striking out ``or'' at the end 
        of the subparagraph;
            (B) in subparagraph (C), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (C) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) in line of duty while remaining overnight, between 
        successive periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, if the site 
        is outside reasonable commuting distance from the member's 
        residence.''.

    (d) Compensation for Inactive-Duty Training.--Section 206(a)(3) of 
title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``or'' at the end 
        of clause (ii);
            (2) in subparagraph (B), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and

[[Page 110 STAT. 372]]

            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) in line of duty while remaining overnight, 
                between successive periods of inactive-duty training, at 
                or in the vicinity of the site of the inactive-duty 
                training, if the site is outside reasonable commuting 
                distance from the member's residence.''.
SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED 
                        RESERVES WHO DIE BEFORE AGE 60.

    (a) Change in Eligibility Requirements.--Paragraph (2) of section 
1076(b) of title 10, United States Code, is amended--
            (1) by striking out ``death (A) would'' and inserting in 
        lieu thereof ``death would''; and
            (2) by striking out ``, and (B) had elected to participate 
        in the Survivor Benefit Plan established under subchapter II of 
        chapter 73 of this title''.

    (b) Conforming Amendments.--Such paragraph is further amended--
            (1) in the matter following paragraph (2), by striking out 
        ``clause (2)'' the first place it appears and inserting in lieu 
        thereof ``paragraph (2)''; and
            (2) by striking out the second sentence.
SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED 
                        RESERVE ASSIGNED TO EARLY DEPLOYING UNITS 
                        OF THE ARMY SELECTED RESERVE.

    (a) Annual Medical and Dental Screenings and Care.--Section 1074a of 
title 10, United States Code, is amended--
            (1) in subsection (c), by striking out ``this section'' and 
        inserting in lieu thereof ``subsection (b)''; and
            (2) by adding at the end the following new subsection:

    ``(d)(1) The Secretary of the Army shall provide to members of the 
Selected Reserve of the Army who are assigned to units scheduled for 
deployment within 75 days after mobilization the following medical and 
dental services:
            ``(A) An annual medical screening.
            ``(B) For members who are over 40 years of age, a full 
        physical examination not less often than once every two years.
            ``(C) An annual dental screening.
            ``(D) The dental care identified in an annual dental 
        screening as required to ensure that a member meets the dental 
        standards required for deployment in the event of mobilization.

    ``(2) The services provided under this subsection shall be provided 
at no cost to the member.''.
    (b) <<NOTE: 10 USC 10105 note.>> Conforming Repeals.--Sections 1117 
and 1118 of the Army National Guard Combat Readiness Reform Act of 1992 
(title XI of Public Law 102-484; 10 U.S.C. 3077 note) are repealed.
SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Program Authorization.--(1) Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1076a the following 
new section:

``Sec. 1076b. Selected Reserve dental insurance

    ``(a) Authority To Establish Plan.--The Secretary of Defense shall 
establish a dental insurance plan for members of the Selected

[[Page 110 STAT. 373]]

Reserve of the Ready Reserve. The plan shall provide for voluntary 
enrollment and for premium sharing between the Department of Defense and 
the members enrolled in the plan. <<NOTE: Regulations.>> The plan shall 
be administered under regulations prescribed by the Secretary of 
Defense.

    ``(b) Premium Sharing.--(1) A member enrolling in the dental 
insurance plan shall pay a share of the premium charged for the 
insurance coverage. The member's share may not exceed $25 per month.
    ``(2) The Secretary of Defense may reduce the monthly premium 
required to be paid by enlisted members under paragraph (1) if the 
Secretary determines that the reduction is appropriate in order to 
assist enlisted members to participate in the dental insurance plan.
    ``(3) A member's share of the premium for coverage by the dental 
insurance plan shall be deducted and withheld from the basic pay payable 
to the member for inactive duty training and from the basic pay payable 
to the member for active duty.
    ``(4) The Secretary of Defense shall pay the portion of the premium 
charged for coverage of a member under the dental insurance plan that 
exceeds the amount paid by the member.
    ``(c) Benefits Available Under the Plan.--The dental insurance plan 
shall provide benefits for basic dental care and treatment, including 
diagnostic services, preventative services, basic restorative services, 
and emergency oral examinations.
    ``(d) Termination of Coverage.--The coverage of a member by the 
dental insurance plan shall terminate on the last day of the month in 
which the member is discharged, transfers to the Individual Ready 
Reserve, Standby Reserve, or Retired Reserve, or is ordered to active 
duty for a period of more than 30 days.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076a the 
following:

``1076b. Selected Reserve dental insurance.''.

    (b) <<NOTE: 10 USC 1076b note.>> Implementation.--Beginning not 
later than October 1, 1996, the Secretary of Defense shall offer members 
of the Selected Reserve the opportunity to enroll in the dental 
insurance plan required under section 1076b of title 10, United States 
Code (as added by subsection (a)). During fiscal year 1996, the 
Secretary shall collect such information and complete such planning and 
other preparations as are necessary to offer and administer the dental 
insurance plan by that date. The activities undertaken by the Secretary 
under this subsection during fiscal year 1996 may include--
            (1) surveys; and
            (2) tests, in not more than three States, of a dental 
        insurance plan or alternative dental insurance plans meeting the 
        requirements of section 1076b of title 10, United States Code.
SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED TREATMENT 
                        FACILITY PROGRAM.

    Section 1105 of title 10, United States Code, is amended by striking 
out subsection (h).

[[Page 110 STAT. 374]]

                       Subtitle B--TRICARE Program

SEC. 711.  <<NOTE: 10 USC 1073 note.>> DEFINITION OF TRICARE 
                        PROGRAM.

    For purposes of this subtitle, the term ``TRICARE program'' means 
the managed health care program that is established by the Secretary of 
Defense under the authority of chapter 55 of title 10, United States 
Code, principally section 1097 of such title, and includes the 
competitive selection of contractors to financially underwrite the 
delivery of health care services under the Civilian Health and Medical 
Program of the Uniformed Services.
SEC. 712. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR 
                        PERSONS ENROLLED IN MANAGED CARE 
                        INITIATIVES.

    Section 1097(c) of title 10, United States Code, is amended in the 
third sentence by striking out ``However, the Secretary may'' and 
inserting in lieu thereof ``Notwithstanding the preferences established 
by sections 1074(b) and 1076 of this title, the Secretary shall''.
SEC. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE 
                        PROGRAM.

    Section 1097(e) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``Without imposing 
additional costs on covered beneficiaries who participate in contracts 
for health care services under this section or health care plans offered 
under section 1099 of this title, the Secretary shall permit such 
covered beneficiaries to pay, on a quarterly basis, any enrollment fee 
required for such participation.''.
SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE PROGRAM TO 
                        BE BASED ON ENTIRE PROGRAM.

    (a) Change in Budget Neutrality Requirements.--Subsection (c) of 
section 731 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160; 10 U.S.C. 1073 note) is amended--
            (1) by striking out ``each managed health care initiative 
        that includes the option'' and inserting in lieu thereof ``the 
        TRICARE program''; and
            (2) by striking out ``covered beneficiaries who enroll in 
        the option'' and inserting in lieu thereof ``members of the 
        uniformed services and covered beneficiaries who participate in 
        the TRICARE program''.

    (b) Addition of Definition of TRICARE Program.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `covered beneficiary' means a beneficiary 
        under chapter 55 of title 10, United States Code, other than a 
        beneficiary under section 1074(a) of such title.
            ``(2) The term `TRICARE program' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of chapter 55 of title 10, United States 
        Code, principally section 1097 of such title, and includes the 
        competitive selection of contractors to financially underwrite 
        the delivery of health care services under the Civilian Health 
        and Medical Program of the Uniformed Services.''.

[[Page 110 STAT. 375]]

SEC. 715.  <<NOTE: 10 USC 1073 note.>> TRAINING IN HEALTH CARE 
                        MANAGEMENT AND ADMINISTRATION FOR TRICARE 
                        LEAD AGENTS.

    (a) Provision of Training.--Not later than six months after the date 
of the enactment of this Act, the Secretary of Defense shall implement a 
professional educational program to provide appropriate training in 
health care management and administration--
            (1) to each commander of a military medical treatment 
        facility of the Department of Defense who is selected to serve 
        as a lead agent to coordinate the delivery of health care by 
        military and civilian providers under the TRICARE program; and
            (2) to appropriate members of the support staff of the 
        treatment facility who will be responsible for daily operation 
        of the TRICARE program.

    (b) Report on Implementation.--Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report describing the professional educational program 
implemented pursuant to this section.
SEC. 716.  <<NOTE: Children and youth. 10 USC 1073 note.>> PILOT 
                        PROGRAM OF INDIVIDUALIZED RESIDENTIAL 
                        MENTAL HEALTH SERVICES.

    (a) Program Required.--(1) During fiscal year 1996, the Secretary of 
Defense, in consultation with the other administering Secretaries under 
chapter 55 of title 10, United States Code, shall implement a pilot 
program to provide residential and wraparound services to children 
described in paragraph (2) who are in need of mental health services. 
The Secretary shall implement the pilot program for an initial period of 
at least two years in a military health care region in which the TRICARE 
program has been 
implemented.
    (2) A child shall be eligible for selection to participate in the 
pilot program if the child is a dependent (as described in subparagraph 
(D) or (I) of section 1072(2) of title 10, United States Code) who--
            (A) is eligible for health care under section 1079 or 1086 
        of such title; and
            (B) has a serious emotional disturbance that is generally 
        regarded as amenable to treatment.

    (b) Wraparound Services Defined.--For purposes of this section, the 
term ``wraparound services'' means individualized mental health services 
that are provided principally to allow a child to remain in the family 
home or other least-restrictive and least-costly setting, but also are 
provided as an aftercare planning service for children who have received 
acute or residential care. Such term includes nontraditional mental 
health services that will assist the child to be maintained in the 
least-restrictive and least-costly setting.
    (c) Pilot Program Agreement.--Under the pilot program the Secretary 
of Defense shall enter into one or more agreements that require a mental 
health services provider under the agreement--
            (1) to provide wraparound services to a child described in 
        subsection (a)(2);
            (2) to continue to provide such services as needed during 
        the period of the agreement even if the child moves to another 
        location within the same TRICARE program region during that 
        period; and

[[Page 110 STAT. 376]]

            (3) to share financial risk by accepting as a maximum annual 
        payment for such services a case-rate reimbursement not in 
        excess of the amount of the annual standard CHAMPUS residential 
        treatment benefit payable (as determined in accordance with 
        section 8.1 of chapter 3 of volume II of the CHAMPUS policy 
        manual).

    (d) Report.--Not later than March 1, 1998, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the program carried out under this section. The report shall 
contain--
            (1) an assessment of the effectiveness of the program; and
            (2) the Secretary's views regarding whether the program 
        should be implemented throughout the military health care 
        system.
SEC. 717.  <<NOTE: 10 USC 1073 note.>> EVALUATION AND REPORT ON 
                        TRICARE PROGRAM EFFECTIVENESS.

    (a) Evaluation Required.--The Secretary of Defense shall arrange for 
an on-going evaluation of the effectiveness of the TRICARE program in 
meeting the goals of increasing the access of covered beneficiaries 
under chapter 55 of title 10, United States Code, to health care and 
improving the quality of health care provided to covered beneficiaries, 
without increasing the costs incurred by the Government or covered 
beneficiaries. The evaluation shall specifically address--
            (1) the impact of the TRICARE program on military retirees 
        with regard to access, costs, and quality of health care 
        services; and
            (2) identify noncatchment areas in which the health 
        maintenance organization option of the TRICARE program is 
        available or is proposed to become available.

    (b) Entity To Conduct Evaluation.--The Secretary may use a federally 
funded research and development center to conduct the evaluation 
required by subsection (a).
    (c) Annual Report.--Not later than March 1, 1997, and each March 1 
thereafter, the Secretary shall submit to Congress a report describing 
the results of the evaluation under subsection (a) during the preceding 
year.
SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE UNDER 
                        TRICARE PROGRAM FOR COVERED BENEFICIARIES 
                        WHO ARE MEDICARE ELIGIBLE.

    (a) Findings.--Congress finds the following:
            (1) Medical care provided in facilities of the uniformed 
        services is generally less expensive to the Federal Government 
        than the same care provided at Government expense in the private 
        sector.
            (2) Covered beneficiaries under the military health care 
        provisions of chapter 55, United States Code, who are eligible 
        for medicare under title XVIII of the Social Security Act (42 
        U.S.C. 1395 et seq.) deserve health care options that empower 
        them to choose the health plan that best fits their needs.

    (b) Sense of Congress.--In light of the findings specified in 
subsection (a), it is the sense of Congress that--
            (1) the Secretary of Defense should develop a program to 
        ensure that such covered beneficiaries who reside in a region in 
        which the TRICARE program has been implemented con

[[Page 110 STAT. 377]]

        tinue to have adequate access to health care services after the 
        implementation of the TRICARE program; and
            (2) as a means of ensuring such access, the budget for 
        fiscal year 1997 submitted by the President under section 1105 
        of title 31, United States Code, should provide for 
        reimbursement by the Health Care Financing Administration to the 
        Department of Defense for health care services provided to such 
        covered beneficiaries in medical treatment facilities of the 
        Department of Defense.

           Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN FACILITIES AS 
                        UNIFORMED SERVICES TREATMENT FACILITIES.

    Section 1252(e) of the Department of Defense Authorization Act, 1984 
(42 U.S.C. 248d(e)) is amended by striking out ``December 31, 1996'' in 
the first sentence and inserting in lieu thereof ``September 30, 1997''.
SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED SERVICES 
                        TREATMENT FACILITIES.

    Subsection (f) of section 1252 of the Department of Defense 
Authorization Act, 1984 (42 U.S.C. 248d), is amended to read as follows:
    ``(f) Limitation on Expenditures.--The total amount of expenditures 
by the Secretary of Defense to carry out this section and section 911 of 
the Military Construction Authorization Act, 1982 (42 U.S.C. 248c), for 
fiscal year 1996 may not exceed $300,000,000, adjusted by the Secretary 
to reflect the inflation factor used by the Department of Defense for 
such fiscal year.''.
SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN CASES.

    Section 1074 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) The Secretary of Defense may require, by regulation, a 
private CHAMPUS provider to apply the CHAMPUS payment rules (subject to 
any modifications considered appropriate by the Secretary) in imposing 
charges for health care that the private CHAMPUS provider provides to a 
member of the uniformed services who is enrolled in a health care plan 
of a facility deemed to be a facility of the uniformed services under 
section 911(a) of the Military Construction Authorization Act, 1982 (42 
U.S.C. 248c(a)) when the health care is provided outside the catchment 
area of the facility.
    ``(2) In this subsection:
            ``(A) The term `private CHAMPUS provider' means a private 
        facility or health care provider that is a health care provider 
        under the Civilian Health and Medical Program of the Uniformed 
        Services.
            ``(B) The term `CHAMPUS payment rules' means the payment 
        rules referred to in subsection (c).

    ``(3) <<NOTE: Regulations.>> The Secretary of Defense shall 
prescribe regulations under this subsection after consultation with the 
other administering Secretaries.''.

[[Page 110 STAT. 378]]

SEC. 724. APPLICATION OF FEDERAL ACQUISITION REGULATION TO 
                        PARTICIPATION AGREEMENTS WITH UNIFORMED 
                        SERVICES TREATMENT FACILITIES.

    (a) Section 718(c) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) <<NOTE: 42 USC 
248c note.>> is amended--
            (1) in the second sentence of paragraph (1), by striking out 
        ``A participation agreement'' and inserting in lieu thereof 
        ``Except as provided in paragraph (4), a participation 
        agreement'';
            (2) by redesignating paragraph (4) as paragraph (6); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Application of federal acquisition regulation.--On and 
        after the date of the enactment of this paragraph, Uniformed 
        Services Treatment Facilities and any participation agreement 
        between Uniformed Services Treatment Facilities and the 
        Secretary of Defense shall be subject to the Federal Acquisition 
        Regulation issued pursuant to section 25(c) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 421(c)) 
        notwithstanding any provision to the contrary in such a 
        participation agreement. The requirements regarding competition 
        in the Federal Acquisition Regulation shall apply with regard to 
        the negotiation of any new participation agreement between the 
        Uniformed Services Treatment Facilities and the Secretary of 
        Defense under this subsection or any other provision of law.''.

    (b) Sense of Congress.--(1) Congress finds that the Uniformed 
Services Treatment Facilities provide quality health care to the 120,000 
Department of Defense beneficiaries enrolled in the Uniformed Services 
Family Health Plan provided by these facilities.
    (2) In light of such finding, it is the sense of Congress that the 
Uniformed Services Family Health Plan provided by the Uniformed Services 
Treatment Facilities should not be terminated for convenience under 
provisions of the Federal Acquisition Regulation by the Secretary of 
Defense before the expiration of the current participation agreements.
    (3) For purposes of this subsection, the term ``Uniformed Services 
Treatment Facility'' means a facility deemed to be a facility of the 
uniformed services by virtue of section 911(a) of the Military 
Construction Authorization Act, 1982 (42 U.S.C. 248c(a)).
SEC. 725. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED SERVICES 
                        TREATMENT FACILITIES IN MANAGED CARE 
                        PROGRAMS OF DEPARTMENT OF DEFENSE.

    Section 718(c) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1587) <<NOTE: 42 USC 248c 
note.>> is amended by inserting after paragraph (4), as added by section 
722, the following new paragraph:
            ``(5) Plan for integrating facilities.--(A) The Secretary of 
        Defense shall develop a plan under which Uniformed Services 
        Treatment Facilities could be included, before the expiration 
        date of the participation agreements entered into under this 
        section, in the exclusive health care provider networks 
        established by the Secretary for the geographic regions in which 
        the facilities are located. The Secretary shall address in the 
        plan the feasibility of implementing the managed care plan

[[Page 110 STAT. 379]]

        of the Uniformed Services Treatment Facilities, known as Option 
        II, on a mandatory basis for all USTF Medicare-eligible 
        beneficiaries and the potential cost savings to the Military 
        Health Care Program that could be achieved under such option.
            ``(B) The Secretary shall submit the plan developed under 
        this paragraph to Congress not later than March 1, 1996.
            ``(C) The plan developed under this paragraph shall be 
        consistent with the requirements specified in paragraph (4). If 
        the plan is not submitted to Congress by the expiration date of 
        the participation agreements entered into under this section, 
        the participation agreements shall remain in effect, at the 
        option of the Uniformed Services Treatment Facilities, until the 
        end of the 180-day period beginning on the date the plan is 
        finally submitted.
            ``(D) For purposes of this paragraph, the term `USTF 
        Medicare-eligible beneficiaries' means covered beneficiaries 
        under chapter 55 of title 10, United States Code, who are 
        enrolled in a managed health plan offered by the Uniformed 
        Services Treatment Facilities and entitled to hospital insurance 
        benefits under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.).''.

SEC. 726. <<NOTE: 42 USC 248c note.>> EQUITABLE IMPLEMENTATION OF 
            UNIFORM COST SHARING REQUIREMENTS FOR UNIFORMED SERVICES 
            TREATMENT FACILITIES.

    (a) Time for Fee Implementation.--The uniform managed care benefit 
fee and copayment schedule developed by the Secretary of Defense for use 
in all managed care initiatives of the military health service system, 
including the managed care program of the Uniformed Services Treatment 
Facilities, shall be extended to the managed care program of a Uniformed 
Services Treatment Facility only after the later of--
            (1) the implementation of the TRICARE regional program 
        covering the service area of the Uniformed Services Treatment 
        Facility; or
            (2) October 1, 1996.

    (b) Submission of Actuarial Estimates.--Paragraph (2) of subsection 
(a) shall operate as a condition on the extension of the uniform managed 
care benefit fee and copayment schedule to the Uniformed Services 
Treatment Facilities only if the Uniformed Services Treatment Facilities 
submit to the Comptroller General of the United States, within 30 days 
after the date of the enactment of this Act, actuarial estimates in 
support of their contention that the extension of such fees and 
copayments will have an adverse effect on the operation of the Uniformed 
Services Treatment Facilities and the enrollment of participants.
    (c) Evaluation.--(1) Except as provided in paragraph (2), not later 
than 90 days after the date of the enactment of this Act, the 
Comptroller General shall submit to Congress the results of an 
evaluation of the effect on the Uniformed Services Treatment Facilities 
of the extension of the uniform benefit fee and copayment schedule to 
the Uniformed Services Treatment Facilities. The evaluation shall 
include an examination of whether the benefit fee and copayment schedule 
may--
            (A) cause adverse selection of enrollees;
            (B) be inappropriate for a fully at-risk program similar to 
        civilian health maintenance organizations; or

[[Page 110 STAT. 380]]

            (C) result in an enrolled population dissimilar to the 
        general beneficiary population.

    (2) The Comptroller General shall not be required to prepare or 
submit the evaluation under paragraph (1) if the Uniformed Services 
Treatment Facilities fail to satisfactorily comply with subsection (b), 
as determined by the Comptroller General.
SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENT 
                        REGARDING UNIFORMED SERVICES TREATMENT 
                        FACILITIES.

    Section 1252 of the Department of Defense Authorization Act, 1984 
(42 U.S.C. 248d), is amended by striking out subsection (d).

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

SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-CARE 
                        PROVIDERS UNDER CHAMPUS.

    (a) Maximum Payment.--Subsection (h) of section 1079 of title 10, 
United States Code, is amended by striking out paragraph (1) and 
inserting in lieu thereof the following new paragraph:
    ``(1) Payment for a charge for services by an individual health care 
professional (or other noninstitutional health care provider) for which 
a claim is submitted under a plan contracted for under subsection (a) 
may not exceed the lesser of--
            ``(A) the amount equivalent to the 80th percentile of billed 
        charges made for similar services in the same locality during 
        the base period; or
            ``(B) an amount determined to be appropriate, to the extent 
        practicable, in accordance with the same reimbursement rules as 
        apply to payments for similar services under title XVIII of the 
        Social Security Act (42 U.S.C. 1395 et seq.).''.

    (b) Comparison to Medicare Payments.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(3) For the purposes of paragraph (1)(B), the appropriate payment 
amount shall be determined by the Secretary of Defense, in consultation 
with the other administering Secretaries.''.
    (c) Exceptions and Limitations.--Such subsection is further amended 
by inserting after paragraph (3), as added by subsection (b), the 
following new paragraphs:
    ``(4) <<NOTE: Regulations.>> The Secretary of Defense, in 
consultation with the other administering Secretaries, shall prescribe 
regulations to provide for such exceptions to the payment limitations 
under paragraph (1) as the Secretary determines to be necessary to 
assure that covered beneficiaries retain adequate access to health care 
services. Such exceptions may include the payment of amounts higher than 
the amount allowed under paragraph (1) when enrollees in managed care 
programs obtain covered emergency services from nonparticipating 
providers. To provide a suitable transition from the payment 
methodologies in effect before the date of the enactment of this 
paragraph to the methodology required by paragraph (1), the amount 
allowable for any service may not be reduced by more than 15 percent 
below the amount allowed for the same service during the immediately 
preceding 12-month period (or other period as established by the 
Secretary of Defense).

[[Page 110 STAT. 381]]

    ``(5) <<NOTE: Regulations.>> The Secretary of Defense, in 
consultation with the other administering Secretaries, shall prescribe 
regulations to establish limitations (similar to the limitations 
established under title XVIII of the Social Security Act (42 U.S.C. 1395 
et seq.)) on beneficiary liability for charges of an individual health 
care professional (or other noninstitutional health care provider).''.

    (d) Conforming Amendment.--Paragraph (2) of such subsection is 
amended by striking out ``paragraph (1)'' and inserting in lieu thereof 
``paragraph (1)(A)''.
    (e) Report on Effect of Amendments.--Not later than March 1, 1996, 
the Secretary of Defense shall submit to Congress a report analyzing the 
effect of the amendments made by this section on the ability or 
willingness of individual health care professionals and other 
noninstitutional health care providers to participate in the Civilian 
Health and Medical Program of the Uniformed Services.
SEC. 732. NOTIFICATION OF CERTAIN CHAMPUS COVERED BENEFICIARIES OF 
                        LOSS OF CHAMPUS ELIGIBILITY.

    Section 1086(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) The administering Secretaries shall develop a mechanism by 
which persons described in paragraph (1) who satisfy only the criteria 
specified in subparagraphs (A) and (B) of paragraph (2), but not 
subparagraph (C) of such paragraph, are promptly notified of their 
ineligibility for health benefits under this section. In developing the 
notification mechanism, the administering Secretaries shall consult with 
the administrator of the Health Care Financing Administration.''.
SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT 
                        FACILITIES OF THE COAST GUARD.

    (a) Contracting Authority.--Section 1091(a) of title 10, United 
States Code, is amended--
            (1) by inserting after ``Secretary of Defense'' the 
        following: ``, with respect to medical treatment facilities of 
        the Department of Defense, and the Secretary of Transportation, 
        with respect to medical treatment facilities of the Coast Guard 
        when the Coast Guard is not operating as a service in the 
        Navy,''; and
            (2) by striking out ``medical treatment facilities of the 
        Department of Defense'' and inserting in lieu thereof ``such 
        facilities''.

    (b) <<NOTE: 10 USC 1091 note.>> Ratification of Existing 
Contracts.--Any exercise of authority under section 1091 of title 10, 
United States Code, to enter into a personal services contract on behalf 
of the Coast Guard before the effective date of the amendments made by 
subsection (a) is hereby ratified.

    (c) <<NOTE: 10 USC 1091 note.>> Effective Date.--The amendments made 
by subsection (a) shall take effect as of October 1, 1995.

SEC. 734. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

    Section 1095 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(k)(1) To improve the administration of this section and sections 
1079(j)(1) and 1086(d) of this title, the Secretary of Defense, in 
consultation with the other administering Secretaries, may prescribe 
regulations providing for the collection of information regarding 
insurance, medical service, or health plans of third-party payers held 
by covered beneficiaries.

[[Page 110 STAT. 382]]

    ``(2) The collection of information under regulations prescribed 
under paragraph (1) shall be conducted in the same manner as is provided 
in section 1862(b)(5) of the Social Security Act (42 U.S.C. 
1395y(b)(5)). The Secretary may provide for obtaining from the 
Commissioner of Social Security employment information comparable to the 
information provided to the Administrator of the Health Care Financing 
Administration pursuant to such section. Such regulations may require 
the mandatory disclosure of Social Security account numbers for all 
covered beneficiaries.
    ``(3) The Secretary may disclose relevant employment information 
collected under this subsection to fiscal intermediaries or other 
designated contractors.
    ``(4) The Secretary may provide for contacting employers of covered 
beneficiaries to obtain group health plan information comparable to the 
information authorized to be obtained under section 1862(b)(5)(C) of the 
Social Security Act (42 U.S.C. 1395y(b)(5)(C)). Notwithstanding clause 
(iii) of such section, clause (ii) of such section regarding the 
imposition of civil money penalties shall apply to the collection of 
information under this paragraph.
    ``(5) Information obtained under this subsection may not be 
disclosed for any purpose other than to carry out the purpose of this 
section and sections 1079(j)(1) and 1086(d) of this title.''.
SEC. 735. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS DEFENSE 
                        HEALTH PROGRAM ACCOUNT AND TWO-YEAR 
                        AVAILABILITY OF CERTAIN ACCOUNT FUNDS.

    (a) Redesignation.--Section 1100 of title 10, United States Code, is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``Military Health Care Account'' 
                and inserting in lieu thereof ``Defense Health Program 
                Account''; and
                    (B) by striking out ``the Civilian Health and 
                Medical Program of the Uniformed Services'' and 
                inserting in lieu thereof ``medical and health care 
                programs of the Department of Defense''; and
            (2) in subsection (b)--
                    (A) by striking out ``entering into a contract'' and 
                inserting in lieu thereof ``conducting programs and 
                activities under this chapter, including contracts 
                entered into''; and
                    (B) by inserting a comma after ``title''.

    (b) Two Year Availability of Certain Appropriations.--Subsection 
(a)(2) of such section is amended to read as follows:
    ``(2) Of the total amount appropriated for a fiscal year for 
programs and activities carried out under this chapter, the amount equal 
to three percent of such total amount shall remain available for 
obligation until the end of the following fiscal year.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) by striking out subsections (c), (d), and (f); and
            (2) by redesignating subsection (e) as subsection (c).

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

[[Page 110 STAT. 383]]

``Sec. 1100. Defense Health Program Account''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as follows:

``1100. Defense Health Program Account.''.

SEC. 736. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR HEALTH-
                        CARE PROFESSIONALS IN RESERVE COMPONENTS 
                        TO INCLUDE DENTAL SPECIALTIES.

    Section 16201(b) of title 10, United States Code, is amended--
            (1) in the subsection heading, by inserting ``and Dentists'' 
        after ``Physicians'';
            (2) in paragraph (1)(A), by inserting ``or dental school'' 
        after ``medical school'';
            (3) in paragraphs (1)(B) and (2)(B), by inserting ``or 
        dental officer'' after ``medical officer''; and
            (4) in paragraph (1)(C), by striking out ``physicians in a 
        medical specialty'' and inserting in lieu thereof ``physicians 
        or dentists in a medical or dental specialty''.
SEC. 737. APPLICABILITY OF LIMITATION ON PRICES OF PHARMACEUTICALS 
                        PROCURED FOR COAST GUARD.

    (a) Inclusion of Coast Guard.--Section 8126(b) of title 38, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(4) The Coast Guard.''.

    (b) <<NOTE: 38 USC 8126 note.>> Effective Date; Application of 
Amendment.--The amendment made by subsection (a) shall take effect as if 
included in the enactment of section 603 of the Veterans Health Care Act 
of 1992 (Public Law 102-585; 106 Stat. 4971).
SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE FACILITIES 
                        FOR ABORTIONS.

    (a) In General.--Section 1093 of title 10, United States Code, is 
amended--
            (1) by inserting ``(a) Restriction on Use of 
        Funds.--'' before ``Funds available''; and
            (2) by adding at the end the following:

    ``(b) Restriction on Use of Facilities.--No medical treatment 
facility or other facility of the Department of Defense may be used to 
perform an abortion except where the life of the mother would be 
endangered if the fetus were carried to term or in a case in which the 
pregnancy is the result of an act of rape or incest.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 1093. Performance of abortions: restrictions''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as follows:

``1093. Performance of abortions: restrictions.''.

[[Page 110 STAT. 384]]

                        Subtitle E--Other Matters

SEC. 741. TRISERVICE NURSING RESEARCH.

    (a) Program Authorized.--Chapter 104 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2116. Military nursing research

    ``(a) Definitions.--In this section:
            ``(1) The term `military nursing research' means research on 
        the furnishing of care and services by nurses in the armed 
        forces.
            ``(2) The term `TriService Nursing Research Program' means 
        the program of military nursing research authorized under this 
        section.

    ``(b) Program Authorized.--The Secretary of Defense may establish at 
the University a program of military nursing research.
    ``(c) TriService Research Group.--The TriService Nursing Research 
Program shall be administered by a TriService Nursing Research Group 
composed of Army, Navy, and Air Force nurses who are involved in 
military nursing research and are designated by the Secretary concerned 
to serve as members of the group.
    ``(d) Duties of Group.--The TriService Nursing Research Group 
shall--
            ``(1) develop for the Department of Defense recommended 
        guidelines for requesting, reviewing, and funding proposed 
        military nursing research projects; and
            ``(2) make available to Army, Navy, and Air Force nurses and 
        Department of Defense officials concerned with military nursing 
        research--
                    ``(A) information about nursing research projects 
                that are being developed or carried out in the Army, 
                Navy, and Air Force; and
                    ``(B) expertise and information beneficial to the 
                encouragement of meaningful nursing research.

    ``(e) Research Topics.--For purposes of this section, military 
nursing research includes research on the following issues:
            ``(1) Issues regarding how to improve the results of nursing 
        care and services provided in the armed forces in time of peace.
            ``(2) Issues regarding how to improve the results of nursing 
        care and services provided in the armed forces in time of war.
            ``(3) Issues regarding how to prevent complications 
        associated with battle injuries.
            ``(4) Issues regarding how to prevent complications 
        associated with the transporting of patients in the military 
        medical evacuation system.
            ``(5) Issues regarding how to improve methods of training 
        nursing personnel.
            ``(6) Clinical nursing issues, including such issues as 
        prevention and treatment of child abuse and spouse abuse.
            ``(7) Women's health issues.
            ``(8) Wellness issues.
            ``(9) Preventive medicine issues.
            ``(10) Home care management issues.

[[Page 110 STAT. 385]]

            ``(11) Case management issues.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 104 of such title is amended by adding at the end the following:

``2116. Military nursing research.''.

SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY PSYCHOLOGISTS 
                        TO PRESCRIBE PSYCHOTROPIC MEDICATIONS.

    (a) Termination.--Not later than June 30, 1997, the Secretary of 
Defense shall terminate the demonstration pilot program for training 
military psychologists in the prescription of psychotropic medications, 
which is referred to in section 8097 of the Department of Defense 
Appropriations Act, 1991 (Public Law 101-511; 104 Stat. 1897).
    (b) Prohibition on Additional Enrollees Pending Termination.--After 
the date of the enactment of this Act, the Secretary of Defense may not 
enroll any new participants for the demonstration pilot program 
described in subsection (a).
    (c) Effect on Current Participants.--The requirement to terminate 
the demonstration pilot program described in subsection (a) shall not be 
construed to affect the training or utilization of military 
psychologists in the prescription of psychotropic medications who are 
participating in the demonstration pilot program on the date of the 
enactment of this Act or who have completed such training before that 
date.
    (d) <<NOTE: Reports.>> Evaluation.--As soon as possible after the 
date of the enactment of this Act, but not later than April 1, 1997, the 
Comptroller General of the United States shall submit to Congress a 
report evaluating the success of the demonstration pilot program 
described in subsection (a). The report shall include--
            (1) a cost-benefit analysis of the program;
            (2) a discussion of the utilization requirements under the 
        program; and
            (3) recommendations regarding--
                    (A) whether the program should be extended so as to 
                continue to provide training to military psychologists 
                in the prescription of psychotropic medications; and
                    (B) any modifications that should be made in the 
                manner in which military psychologists are trained and 
                used to prescribe psychotropic medications so as to 
                improve the training provided under the program, if the 
                program is extended.
SEC. 743.  <<NOTE: 10 USC 1086 note.>> WAIVER OF COLLECTION OF 
                        PAYMENTS DUE FROM CERTAIN PERSONS UNAWARE 
                        OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Authority To Waive Collection.--The administering Secretaries 
may waive the collection of payments otherwise due from a person 
described in subsection (b) as a result of the receipt by the person of 
health benefits under section 1086 of title 10, United States Code, 
after the termination of the person's eligibility for such benefits.
    (b) Persons Eligible for Waiver.--A person shall be eligible for 
relief 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;

[[Page 110 STAT. 386]]

            (2) in the absence of such paragraph, would have been 
        eligible for health benefits under such section; and
            (3) at the time of the receipt of such benefits, satisfied 
        the criteria specified in subparagraphs (A) and (B) of paragraph 
        (2) of such subsection.

    (c) Extent of Waiver Authority.--The authority to waive the 
collection of payments pursuant to this section shall apply with regard 
to health benefits provided under section 1086 of title 10, United 
States Code, to persons described in subsection (b) during the period 
beginning on January 1, 1967, and ending on the later of--
            (1) the termination date of any special enrollment period 
        provided under title XVIII of the Social Security Act (42 U.S.C. 
        1395 et seq.) specifically for such persons; and
            (2) July 1, 1996.

    (d) Definitions.--For purposes of this section, the term 
``administering Secretaries'' has the meaning given such term in section 
1072(3) of title 10, United States Code.
SEC. 744.  <<NOTE: 10 USC 1092 note.>> DEMONSTRATION PROGRAM TO 
                        TRAIN MILITARY MEDICAL PERSONNEL IN 
                        CIVILIAN SHOCK TRAUMA UNITS.

    (a) Demonstration Program.--(1) Not later than April 1, 1996, the 
Secretary of Defense shall implement a demonstration program to evaluate 
the feasibility of providing shock trauma training for military medical 
personnel through one or more public or nonprofit hospitals. The 
Secretary shall carry out the program pursuant to an agreement with such 
hospitals.
    (2) Under the agreement with a hospital, the Secretary shall assign 
military medical personnel participating in the demonstration program to 
temporary duty in shock trauma units operated by the hospitals that are 
parties to the agreement.
    (3) The agreement shall require, as consideration for the services 
provided by military medical personnel under the agreement, that the 
hospital provide appropriate care to members of the Armed Forces and to 
other persons whose care in the hospital would otherwise require 
reimbursement by the Secretary. The value of the services provided by 
the hospitals shall be at least equal to the value of the services 
provided by military medical personnel under the agreement.
    (b) Termination of Program.--The authority of the Secretary of 
Defense to conduct the demonstration program under this section, and any 
agreement entered into under the demonstration program, shall expire on 
March 31, 1998.
    (c) Report and Evaluation of Program.--(1) Not later than March 1 of 
each year in which the demonstration program is conducted under this 
section, the Secretary of Defense shall submit to Congress a report 
describing the scope and activities of the demonstration program during 
the preceding year.
    (2) Not later than May 1, 1998, the Comptroller General of the 
United States shall submit to Congress a report evaluating the 
effectiveness of the demonstration program in providing shock trauma 
training for military medical personnel.
SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO 
                        DETERMINE APPROPRIATE FORCE LEVELS OF 
                        WARTIME MEDICAL PERSONNEL.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study to evaluate the reasonableness of

[[Page 110 STAT. 387]]

the models used by each military department for determining the 
appropriate wartime force level for medical personnel in the department. 
The study shall include the following:
            (1) An assessment of the modeling techniques used by each 
        department.
            (2) An analysis of the data used in the models to identify 
        medical personnel requirements.
            (3) An identification of the ability of the models to 
        integrate personnel of reserve components to meet department 
        requirements.
            (4) An evaluation of the ability of the Secretary of Defense 
        to integrate the various modeling efforts into a comprehensive, 
        coordinated plan for obtaining the optimum force level for 
        wartime medical personnel.

    (b) Report of Study.--Not later than June 30, 1996, the Comptroller 
General shall report to Congress on the results of the study conducted 
under subsection (a).
SEC. 746. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE FOR 
                        COVERED BENEFICIARIES ENTITLED TO 
                        MEDICARE.

    Not later than March 1, 1996, the Secretary of Defense shall submit 
to Congress a report evaluating the feasibility, costs, and consequences 
for the military health care system of improving access to the system 
for covered beneficiaries under chapter 55 of title 10, United States 
Code, who have limited
access to military medical treatment facilities and are ineligible for 
the Civilian Health and Medical Program of the Uniformed Services under 
section 1086(d)(1) of such title. The alternatives that the Secretary 
shall consider to improve access for such covered beneficiaries shall 
include--
            (1) whether CHAMPUS should serve as a second payer for 
        covered beneficiaries 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
            (2) whether such covered beneficiaries should be offered 
        enrollment in the Federal Employees Health Benefits program 
        under chapter 89 of title 5, United States Code.
SEC. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY MEDICAL 
                        CENTER, COLORADO, ON PROVISION OF CARE TO 
                        MILITARY PERSONNEL, RETIRED MILITARY 
                        PERSONNEL, AND THEIR DEPENDENTS.

    (a) Effect of Closure on Members Experiencing Health Difficulties 
Associated With Persian Gulf Syndrome.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report that--
            (1) assesses the effects of the closure of Fitzsimons Army 
        Medical Center, Colorado, on the capability of the Department of 
        Defense to provide appropriate and adequate health care to 
        members and former members of the Armed Forces who suffer from 
        undiagnosed illnesses (or combination of illnesses) as a result 
        of service in the Armed Forces in the Southwest Asia theater of 
        operations during the Persian Gulf conflict; and
            (2) describes the plans of the Secretary of Defense and the 
        Secretary of the Army to ensure that adequate and appropriate 
        health care is provided to such members for such illnesses (or 
        combination of illnesses).

[[Page 110 STAT. 388]]

    (b) Effect of Closure on Other Covered Beneficiaries.--The report 
required by subsection (a) shall also include--
            (1) an assessment of the effects of the closure of 
        Fitzsimons Army Medical Center on the capability of the 
        Department of Defense to provide appropriate and adequate health 
        care to the dependents of members and former members of the 
        Armed Forces and retired members and their dependents who 
        currently obtain care at the medical center; and
            (2) a description of the plans of the Secretary of Defense 
        and the Secretary of the Army to ensure that adequate and 
        appropriate health care is provided to such persons, as called 
        for in the recommendations of the Secretary of Defense for the 
        closure of Fitzsimons Army Medical Center.
SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE SERVICES 
                        FOR COVERED BENEFICIARIES ADVERSELY 
                        AFFECTED BY CLOSURES OF MILITARY MEDICAL 
                        TREATMENT FACILITIES.

    (a) Findings.--Congress finds the following:
            (1) Military installations selected for closure in the 1991 
        and 1993 rounds of the base closure process will soon close.
            (2) Additional military installations have been selected for 
        closure in the 1995 round of the base closure process.
            (3) Some of the military installations selected for closure 
        include military medical treatment facilities.
            (4) As a result of these base closures, tens of thousands of 
        covered beneficiaries under chapter 55 of title 10, United 
        States Code, who reside in the vicinity of such installations 
        will be left without immediate access to military medical 
        treatment facilities.

    (b) Sense of Congress.--In light of the findings specified in 
subsection (a), it is the sense of Congress that the Secretary of 
Defense should take all appropriate steps necessary to ensure the 
continuation of medical and pharmaceutical benefits for covered 
beneficiaries adversely affected by the closure of military 
installations.
SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL 
                        DIRECTIVES.

    (a) Requirement for Recognition by States.--(1) Chapter 53 of title 
10, United States Code, is amended by inserting after section 1044b the 
following new section:
``Sec. 1044c. Advance medical directives of members and 
                      dependents: requirement for recognition by 
                      States

    ``(a) Instruments To Be Given Legal Effect Without Regard to State 
Law.--An advance medical directive executed by a person eligible for 
legal assistance--
            ``(1) is exempt from any requirement of form, substance, 
        formality, or recording that is provided for advance medical 
        directives under the laws of a State; and
            ``(2) shall be given the same legal effect as an advance 
        medical directive prepared and executed in accordance with the 
        laws of the State concerned.

    ``(b) Advance Medical Directives.--For purposes of this section, an 
advance medical directive is any written declaration that--

[[Page 110 STAT. 389]]

            ``(1) sets forth directions regarding the provision, 
        withdrawal, or withholding of life-prolonging procedures, 
        including hydration and sustenance, for the declarant whenever 
        the declarant has a terminal physical condition or is in a 
        persistent vegetative state; or
            ``(2) authorizes another person to make health care 
        decisions for the declarant, under circumstances stated in the 
        declaration, whenever the declarant is incapable of making 
        informed health care decisions.

    ``(c) <<NOTE: Regulations.>> Statement To Be Included.--(1) Under 
regulations prescribed by the Secretary concerned, an advance medical 
directive prepared by an attorney authorized to provide legal assistance 
shall contain a statement that sets forth the provisions of subsection 
(a).

    ``(2) Paragraph (1) shall not be construed to make inapplicable the 
provisions of subsection (a) to an advance medical directive that does 
not include a statement described in that paragraph.
    ``(d) States Not Recognizing Advance Medical Directives.--Subsection 
(a) does not make an advance medical directive enforceable in a State 
that does not otherwise recognize and enforce advance medical directives 
under the laws of the State.
    ``(e) Definitions.--In this section:
            ``(1) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, and a possession of the United 
        States.
            ``(2) The term `person eligible for legal assistance' means 
        a person who is eligible for legal assistance under section 1044 
        of this title.
            ``(3) The term `legal assistance' means legal services 
        authorized under section 1044 of this title.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1044b the 
following:

``1044c. Advance medical directives of members and dependents: 
           requirement for recognition by States.''.

    (b) <<NOTE: 10 USC 1044c note.>> Effective Date.--Section 1044c of 
title 10, United States Code, shall take effect on the date of the 
enactment of this Act and shall apply to advance medical directives 
referred to in that section that are executed before, on, or after that 
date.

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

                     Subtitle A--Acquisition Reform

SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF 
                        APPROPRIATIONS TO CONTRACTS AT OR BELOW 
                        SIMPLIFIED ACQUISITION THRESHOLD.

    Section 2207 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Money appropriated''; and
            (2) by adding at the end the following new subsection:

    ``(b) This section does not apply to a contract that is for an 
amount not greater than the simplified acquisition threshold (as

[[Page 110 STAT. 390]]

defined in section 4(11) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(11))).''.
SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

    (a) Repeal of Duplicative Authority and Restriction.--Section 2356 
of title 10, United States Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of title 10, United States Code, is amended by striking out 
the item relating to section 2356.
SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND SHIP 
                        SPARE PARTS.

    (a) Repeal.--Section 2383 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by striking out the item relating 
to section 2383.

SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

    Section 2539b(c) of title 10, United States Code, is amended by 
inserting ``and indirect'' after ``recoup the direct'' in the second 
sentence.
SEC. 805. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
                        ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out ``milestone O, 
        milestone I, and milestone II'' and inserting in lieu thereof 
        ``acquisition program''; and
            (2) in subsection (c), by striking out paragraphs (2), (3), 
        and (4) and inserting in lieu thereof the following:
            ``(2) The term `acquisition program decision' has the 
        meaning prescribed by the Secretary of Defense in 
        regulations.''.
SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE 
                        LIMITATION.

    (a) Limitation.--(1) Paragraph (3) of section 2534(a) of title 10, 
United States Code, is amended to read as follows:
            ``(3) Components for naval vessels.--(A) The following 
        components:
                    ``(i) Air circuit breakers.
                    ``(ii) Welded shipboard anchor and mooring chain 
                with a diameter of four inches or less.
                    ``(iii) Vessel propellers with a diameter of six 
                feet or more.
            ``(B) The following components of vessels, to the extent 
        they are unique to marine applications: gyrocompasses, 
        electronic navigation chart systems, steering controls, pumps, 
        propulsion and machinery control systems, and totally enclosed 
        lifeboats.''.

    (2) Subsection (b) of section 2534 of such title is amended by 
adding at the end the following:
            ``(3) Manufacturer of vessel propellers.--In the case of a 
        procurement of vessel propellers referred to in subsection 
        (a)(3)(A)(ii), the manufacturer of the propellers meets the 
        requirements of this subsection only if--
                    ``(A) the manufacturer meets the requirements set 
                forth in paragraph (1); and

[[Page 110 STAT. 391]]

                    ``(B) all castings incorporated into such propellers 
                are poured and finished in the United States.''.

    (3) Paragraph (1) of section 2534(c) of such title is amended to 
read as follows:
            ``(1) Components for naval vessels.--Subsection (a) does not 
        apply to a procurement of spare or repair parts needed to 
        support components for naval vessels produced or manufactured 
        outside the United States.''.

    (4) Section 2534 of such title is amended by adding at the end the 
following new subsection:
    ``(h) Implementation of Naval Vessel Component Limitation.--In 
implementing subsection (a)(3)(B), the Secretary of Defense--
            ``(1) may not use contract clauses or certifications; and
            ``(2) shall use management and oversight techniques that 
        achieve the objective of the subsection without imposing a 
        significant management burden on the Government or the 
        contractor involved.''.

    (5) Subsection (a)(3)(B) of section 2534 of title 10, United States 
Code, as amended by paragraph (1), shall apply only to contracts entered 
into after March 31, 1996.
    (b) Extension of Limitation Relating to Ball Bearings and Roller 
Bearings.--Section 2534(c)(3) of such title is amended by striking out 
``October 1, 1995'' and inserting in lieu thereof ``October 1, 2000''.
    (c) Termination of Vessel Propeller Limitation.--Section 2534(c) of 
such title is amended by adding at the end the following new paragraph:
            `` <<NOTE: Termination date.>> (4) Vessel propellers.--
        Subsection (a)(3)(A)(iii) and this paragraph shall cease to be 
        effective on the date occurring two years after the date of the 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 1996.''.

    (d) Inapplicability of Simplified Acquisition Limitation to 
Contracts for Ball Bearings and Roller Bearings.--Section 2534(g) of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``This section''; and
            (2) by adding at the end the following new paragraph:

    ``(2) Paragraph (1) does not apply to contracts for items described 
in subsection (a)(5) (relating to ball bearings and roller bearings), 
notwithstanding section 33 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 429).''.

SEC. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

    (a) In General.--(1) Section 2401a of title 10, United States Code, 
is amended--
            (A) by inserting before ``The Secretary of Defense'' the 
        following subsection heading: ``(b) Limitation on Contracts With 
        Terms of 18 Months or More.--'';
            (B) by inserting after the section heading the following:

    ``(a) Leasing of Commercial Vehicles and Equipment.--The Secretary 
of Defense may use leasing in the acquisition of commercial vehicles and 
equipment whenever the Secretary determines that leasing of such 
vehicles is practicable and efficient.''; and
            (C) by amending the section heading to read as follows:


[[Page 110 STAT. 392]]



``Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft''.

    (2) The item relating to section 2401a in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:

``2401a. Lease of vehicles, equipment, vessels, and aircraft.''.

    (b) 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 setting forth changes in 
legislation that would be required to facilitate the use of leasing in 
the acquisition of equipment by the Department of Defense.
    (c) <<NOTE: 10 USC 2401a note.>> Pilot Program.--(1) The Secretary 
of the Army may conduct a pilot program for leasing commercial utility 
cargo vehicles in accordance with this subsection.

    (2) Under the pilot program--
            (A) the Secretary may trade existing commercial utility 
        cargo vehicles of the Army for credit against the costs of 
        leasing new replacement commercial utility cargo vehicles for 
        the Army;
            (B) the quantities and trade-in value of commercial utility 
        cargo vehicles to be traded in shall be subject to negotiation 
        between the Secretary and the lessors of the new replacement 
        commercial utility cargo vehicles;
            (C) the lease agreement for a new commercial utility cargo 
        vehicle may be executed with or without an option to purchase at 
        the end of the lease period;
            (D) the lease period for a new commercial utility cargo 
        vehicle may not exceed the warranty period for the vehicle; and
            (E) up to 40 percent of the validated requirement for 
        commercial utility cargo vehicles may be satisfied by leasing 
        such vehicles, except that one or more options for satisfying 
        the remainder of the validated requirement may be provided for 
        and exercised (subject to the requirements of paragraph (6)).

    (3) In awarding contracts under the pilot program, the Secretary 
shall comply with section 2304 of title 10, United States Code.
    (4) The pilot program may not be commenced until--
            (A) <<NOTE: Reports.>> the Secretary submits to the 
        Committee on Armed Services of the Senate and the Committee on 
        National Security of the House of Representatives a report that 
        contains the plans of the Secretary for implementing the program 
        and that sets forth in detail the savings in operating and 
        support costs expected to be derived from retiring older 
        commercial utility cargo vehicles, as compared to the expected 
        costs of leasing newer commercial utility cargo vehicles; and
            (B) a period of 30 calendar days has elapsed after 
        submission of such report.

    (5) <<NOTE: Reports.>> Not later than one year after the date on 
which the first lease under the pilot program is entered into, the 
Secretary of the Army shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report on the status of the pilot program. Such report 
shall be based on at least six months of experience in operating the 
pilot program.

[[Page 110 STAT. 393]]

    (6) The Secretary may exercise an option provided for under 
paragraph (2) only after a period of 60 days has elapsed after the 
submission of the report.
    (7) No lease of commercial utility cargo vehicles may be entered 
into under the pilot program after September 30, 2000.
SEC. 808.  <<NOTE: 10 USC 2501 note.>> COST REIMBURSEMENT RULES 
                        FOR INDIRECT COSTS ATTRIBUTABLE TO PRIVATE 
                        SECTOR WORK OF DEFENSE CONTRACTORS.

    (a) Defense Capability Preservation Agreement.--The Secretary of 
Defense may enter into an agreement, to be known as a ``defense 
capability preservation agreement'', with a defense contractor under 
which the cost reimbursement rules described in subsection (b) shall be 
applied. Such an agreement may be entered into in any case in which the 
Secretary determines that the application of such cost reimbursement 
rules would facilitate the achievement of the policy objectives set 
forth in section 2501(b) of title 10, United States Code.
    (b) Cost Reimbursement Rules.--(1) The cost reimbursement rules 
applicable under an agreement entered into under subsection (a) are as 
follows:
            (A) The Department of Defense shall, in determining the 
        reimbursement due a contractor for its indirect costs of 
        performing a defense contract, allow the contractor to allocate 
        indirect costs to its private sector work only to the extent of 
        the contractor's allocable indirect private sector costs, 
        subject to subparagraph (C).
            (B) For purposes of subparagraph (A), the allocable indirect 
        private sector costs of a contractor are those costs of the 
        contractor that are equal to the sum of--
                    (i) the incremental indirect costs attributable to 
                such work; and
                    (ii) the amount by which the revenue attributable to 
                such private sector work exceeds the sum of--
                          (I) the direct costs attributable to such 
                      private sector work; and
                          (II) the incremental indirect costs 
                      attributable to such private sector work.
            (C) The total amount of allocable indirect private sector 
        costs for a contract in any year of the agreement may not exceed 
        the amount of indirect costs that a contractor would have 
        allocated to its private sector work during that year in 
        accordance with the contractor's established accounting 
        practices.

    (2) The cost reimbursement rules set forth in paragraph (1) may be 
modified by the Secretary of Defense if the Secretary of Defense 
determines that modifications are appropriate to the particular 
situation to facilitate achievement of the policy set forth in section 
2501(b) of title 10, United States Code.
    (c) Implementation.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall establish 
application procedures and procedures for expeditious consideration of 
defense capability preservation agreements as authorized by this 
section.
    (d) Contracts Covered.--An agreement entered into with a contractor 
under subsection (a) shall apply to each Department of Defense contract 
with the contractor in effect on the date on

[[Page 110 STAT. 394]]

which the agreement is entered into and each Department of Defense 
contract that is awarded to the contractor during the term of the 
agreement.
    (e) Reports.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth--
            (1) the number of applications received and the number of 
        applications approved for defense capability preservation 
        agreements; and
            (2) any changes to the authority in this section that the 
        Secretary recommends to further facilitate the policy set forth 
        in section 2501(b) of title 10, United States Code.

SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

    Notwithstanding any other provision of law, neither section 901(b) 
of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) nor section 2631 of 
title 10, United States Code, shall be included before May 1, 1996, on 
any list promulgated under section 34(b) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430(b)).

SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

    Section 6009 of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 108 Stat. 3367) <<NOTE: 5 USC app. 5 note.>> is 
amended to read as follows:
``SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF 
                        AUDIT RECOMMENDATIONS.

    ``(a) Management Decisions.--(1) The head of a Federal agency shall 
make management decisions on all findings and recommendations set forth 
in an audit report of the inspector general of the agency within a 
maximum of six months after the issuance of the report.

    ``(2) The head of a Federal agency shall make management decisions 
on all findings and recommendations set forth in an audit report of any 
auditor from outside the Federal Government within a maximum of six 
months after the date on which the head of the agency receives the 
report.
    ``(b) Completion of Final Action.--The head of a Federal agency 
shall complete final action on each management decision required with 
regard to a recommendation in an inspector general's report under 
subsection (a)(1) within 12 months after the date of the inspector 
general's report. If the head of the agency fails to complete final 
action with regard to a management decision within the 12-month period, 
the inspector general concerned shall identify the matter in each of the 
inspector general's semiannual reports pursuant to section 5(a)(3) of 
the Inspector General Act of 1978 (5 U.S.C. App.) until final action on 
the management decision is completed.''.
SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
                        SUBCONTRACTING PLANS.

    (a) Revision of Authority.--Subsection (a) of section 834 of 
National Defense Authorization Act for Fiscal Years 1990 and 1991 (15 
U.S.C. 637 note) is amended by striking out paragraph (1) and inserting 
in lieu thereof the following:
    ``(1) <<NOTE: Establishment.>> The Secretary of Defense shall 
establish a test program under which contracting activities in the 
military departments and the Defense Agencies are authorized to 
undertake one or more

[[Page 110 STAT. 395]]

demonstration projects to determine whether the negotiation and 
administration of comprehensive subcontracting plans will reduce 
administrative burdens on contractors while enhancing opportunities 
provided under Department of Defense contracts for small business 
concerns and small business concerns owned and controlled by socially 
and economically disadvantaged individuals. In selecting the contracting 
activities to undertake demonstration projects, the Secretary shall take 
such action as is necessary to ensure that a broad range of the supplies 
and services acquired by the Department of Defense are included in the 
test program.''.

    (b) Covered Contractors.--Subsection (b) of such section is amended 
by striking out paragraph (3) and inserting in lieu thereof the 
following:
    ``(3) A Department of Defense contractor referred to in paragraph 
(1) is, with respect to a comprehensive subcontracting plan negotiated 
in any fiscal year, a business concern that,
during the immediately preceding fiscal year, furnished the Department 
of Defense with supplies or services (including professional services, 
research and development services, and construction services) pursuant 
to at least three Department of Defense contracts having an aggregate 
value of at least $5,000,000.''.

    (c) Technical Amendments.--Such section is amended--
            (1) by striking out subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST PURPOSES.

    Section 2373(b) of title 10, United States Code, is amended by 
inserting ``only'' after ``applies'' in the second sentence.
SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES, 
                        TECHNICAL DATA, AND COMPUTER SOFTWARE.

    Section 2386(3) of title 10, United States Code, is amended to read 
as follows:
            ``(3) Design and process data, technical data, and computer 
        software.''.
SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE ACQUISITION 
                        PROGRAMS.

    Section 2434(b)(1)(A) of title 10, United States Code, is amended to 
read as follows:
                    ``(A) be prepared--
                          ``(i) by an office or other entity that is not 
                      under the supervision, direction, or control of 
                      the military department, Defense Agency, or other 
                      component of the Department of Defense that is 
                      directly responsible for carrying out the 
                      development or acquisition of the program; or
                          ``(ii) if the decision authority for the 
                      program has been delegated to an official of a 
                      military department, Defense Agency, or other 
                      component of the Department of Defense, by an 
                      office or other entity that is not directly 
                      responsible for carrying out the development or 
                      acquisition of the program; and''.

[[Page 110 STAT. 396]]

SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND EQUIPPING OF 
            NAVAL VESSELS.

    (a) Applicability of Certain Law.--Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7297 the following:

``Sec. 7299. Contracts: applicability of Walsh-Healey Act

    ``Each contract for the construction, alteration, furnishing, or 
equipping of a naval vessel is subject to the Walsh-Healey Act (41 
U.S.C. 35 et seq.) unless the President determines that this requirement 
is not in the interest of national defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7297 the following:

``7299. Contracts: applicability of Walsh-Healey Act.''.

                        Subtitle B--Other Matters

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $12,000,000 shall be available for carrying out the 
provisions of chapter 142 of title 10, United States Code.
    (b) Specific Programs.--Of the amounts made available pursuant to 
subsection (a), $600,000 shall be available for fiscal year 1996 for the 
purpose of carrying out programs sponsored by eligible entities referred 
to in subparagraph (D) of section 2411(1) of title 10, United States 
Code, that provide procurement technical assistance in distressed areas 
referred to in subparagraph (B) of section 2411(2) of such title. If 
there is an insufficient number of satisfactory proposals for 
cooperative agreements in such distressed areas to allow effective use 
of the funds made available in accordance with this subsection in such 
areas, the funds shall be allocated among the Defense Contract 
Administration Services regions in accordance with section 2415 of such 
title.

SEC. 822. <<NOTE: 10 USC 2302 note.>> DEFENSE FACILITY-WIDE PILOT 
            PROGRAM.

    (a) Authority To Conduct Defense Facility-Wide Pilot Program.--The 
Secretary of Defense may conduct a pilot program, to be known as the 
``defense facility-wide pilot program'', for the purpose of determining 
the potential for increasing the efficiency and effectiveness of the 
acquisition process in facilities by using commercial practices on a 
facility-wide basis.
    (b) Designation of Participating Facilities.--(1) Subject to 
paragraph (2), the Secretary may designate up to two facilities as 
participants in the defense facility-wide pilot program.
    (2) The Secretary may designate for participation in the pilot 
program only those facilities that are authorized to be so designated in 
a law authorizing appropriations for national defense programs that is 
enacted after the date of the enactment of this Act.
    (c) Scope of Program.--At a facility designated as a participant in 
the pilot program, the pilot program shall consist of the following:
            (1) All contracts and subcontracts for defense supplies and 
        services that are performed at the facility.
            (2) All Department of Defense contracts and all subcontracts 
        under Department of Defense contracts performed

[[Page 110 STAT. 397]]

        elsewhere that the Secretary determines are directly and 
        substantially related to the production of defense supplies and 
        services at the facility and are necessary for the pilot 
        program.

    (d) Criteria for Designation of Participating Facilities.--The 
Secretary shall establish criteria for selecting a facility for 
designation as a participant in the pilot program. In developing such 
criteria, the Secretary shall consider the following:
            (1) The number of existing and anticipated contracts and 
        subcontracts performed at the facility--
                    (A) for which contractors are required to provide 
                certified cost or pricing data pursuant to section 2306a 
                of title 10, United States Code; and
                    (B) which are administered with the application of 
                cost accounting standards under section 26(f) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                422(f)).
            (2) The relationship of the facility to other organizations 
        and facilities performing under contracts with the Department of 
        Defense and subcontracts under such contracts.
            (3) The impact that the participation of the facility under 
        the pilot program would have on competing domestic 
        manufacturers.
            (4) Such other factors as the Secretary considers 
        appropriate.

    (e) Notification.--(1) The Secretary shall transmit to the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives a written notification of each facility 
proposed to be designated by the Secretary for participation in the 
pilot program.
    (2) The Secretary shall include in the notification regarding a 
facility designated for participation in the program a management plan 
addressing the following:
            (A) The proposed treatment of research and development 
        contracts or subcontracts to be performed at the facility during 
        the pilot program.
            (B) The proposed treatment of the cost impact of the use of 
        commercial practices on the award and administration of 
        contracts and subcontracts performed at the facility.
            (C) The proposed method for reimbursing the contractor for 
        existing and new contracts.
            (D) The proposed method for measuring the performance of the 
        facility for meeting the management goals of the 
        Secretary.
            (E) Estimates of the annual amount and the total amount of 
        the contracts and subcontracts covered under the pilot 
        program.

    (3)(A) The Secretary shall ensure that the management plan for a 
facility provides for attainment of the following objectives:
            (i) A significant reduction of the cost to the Government 
        for programs carried out at the facility.
            (ii) A reduction of the schedule associated with programs 
        carried out at the facility.
            (iii) An increased use of commercial practices and 
        procedures for programs carried out at the facility.
            (iv) Protection of a domestic manufacturer competing for 
        contracts at such facility from being placed at a significant 
        competitive disadvantage by the participation of the facility in 
        the pilot program.

[[Page 110 STAT. 398]]

    (B) The management plan for a facility shall also require that all 
or substantially all of the contracts to be awarded and performed at the 
facility after the designation of that facility under subsection (b), 
and all or substantially all of the subcontracts to be awarded under 
those contracts and performed at the facility after the designation, 
be--
            (i) for the production of supplies or services on a firm-
        fixed price basis;
            (ii) awarded without requiring the contractors or 
        subcontractors to provide certified cost or pricing data 
        pursuant to section 2306a of title 10, United States Code; and
            (iii) awarded and administered without the application of 
        cost accounting standards under section 26(f) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 422(f)).

    (f) Exemption From Certain Requirements.--In the case of a contract 
or subcontract that is to be performed at a facility designated for 
participation in the defense facility-wide pilot program and that is 
subject to section 2306a of title 10, United States Code, or section 
26(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 
422(f)), the Secretary of Defense may exempt such contract or 
subcontract from the requirement to obtain certified cost or pricing 
data under such section 2306a or the requirement to apply mandatory cost 
accounting standards under such section 26(f) if the Secretary 
determines that the contract or subcontract--
            (1) is within the scope of the pilot program (as described 
        in subsection (c)); and
            (2) is fairly and reasonably priced based on information 
        other than certified cost and pricing data.

    (g) Special Authority.--The authority provided under subsection (a) 
includes authority for the Secretary of Defense--
            (1) to apply any amendment or repeal of a provision of law 
        made in this Act to the pilot program before the effective date 
        of such amendment or repeal; and
            (2) to apply to a procurement of items other than commercial 
        items under such program--
                    (A) the authority provided in section 34 of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 430) 
                to waive a provision of law in the case of commercial 
                items, and
                    (B) any exception applicable under this Act or the 
                Federal Acquisition Streamlining Act of 1994 (Public Law 
                103-355) (or an amendment made by a provision of either 
                Act) in the case of commercial items,
        before the effective date of such provision (or amendment) to 
        the extent that the Secretary determines necessary to test the 
        application of such waiver or exception to procurements of items 
        other than commercial items.

    (h) Applicability.--(1) Subsections (f) and (g) apply to the 
following contracts, if such contracts are within the scope of the pilot 
program at a facility designated for the pilot program under subsection 
(b):
            (A) A contract that is awarded or modified during the period 
        described in paragraph (2).
            (B) A contract that is awarded before the beginning of such 
        period, that is to be performed (or may be performed), in whole 
        or in part, during such period, and that
may be modified as appropriate at no cost to the Government.

[[Page 110 STAT. 399]]

    (2) The period referred to in paragraph (1), with respect to a 
facility designated under subsection (b), is the period that--
            (A) begins 45 days after the date of the enactment of the 
        Act authorizing the designation of that facility in accordance 
        with paragraph (2) of such subsection; and
            (B) ends on September 30, 2000.

    (i) Commercial Practices Encouraged.--With respect to contracts and 
subcontracts within the scope of the defense facility-wide pilot 
program, the Secretary of Defense may, to the extent the Secretary 
determines appropriate and in accordance with applicable law, adopt 
commercial practices in the administration of contracts and 
subcontracts. Such commercial practices may include the following:
            (1) Substitution of commercial oversight and inspection 
        procedures for Government audit and access to records.
            (2) Incorporation of commercial oversight, inspection, and 
        acceptance procedures.
            (3) Use of alternative dispute resolution techniques 
        (including arbitration).
            (4) Elimination of contract provisions authorizing the 
        Government to make unilateral changes to contracts.
SEC. 823.  <<NOTE: Reports.>> TREATMENT OF DEPARTMENT OF DEFENSE 
                        CABLE TELEVISION FRANCHISE AGREEMENTS.

    Not later than 180 days after the date of the enactment of this Act, 
the chief judge of the United States Court of Federal Claims shall 
transmit to Congress a report containing an advisory opinion on the 
following two questions:
            (1) Is it within the power of the executive branch to treat 
        cable television franchise agreements for the construction, 
        installation, or capital improvement of cable television systems 
        at military installations of the Department of Defense as 
        contracts under part 49 of the Federal Acquisition Regulation 
        without violating title VI of the Communications Act of 1934 (47 
        U.S.C. 521 et seq.)?
            (2) If the answer to the question in paragraph (1) is in the 
        affirmative, is the executive branch required by law to so treat 
        such franchise agreements?

SEC. 824. <<NOTE: 10 USC 2302 note.>> EXTENSION OF PILOT MENTOR-PROTEGE 
            PROGRAM.

    Section 831(j)(1) of the National Defense Authorization Act for 
Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by striking out 
``1995'' and inserting in lieu thereof ``1996''.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

SEC. 901.  <<NOTE: 10 USC 131 note.>> ORGANIZATION OF THE OFFICE 
                        OF THE SECRETARY OF DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The statutory provisions that as of the date of the 
        enactment of this Act govern the organization of the Office of 
        the Secretary of Defense have evolved from enactment of

[[Page 110 STAT. 400]]

        a number of executive branch legislative proposals and 
        congressional initiatives over a period of years.
            (2) The May 1995 report of the congressionally mandated 
        Commission on Roles and Missions of the Armed Forces included a 
        number of recommendations relating to the Office of the 
        Secretary of Defense.
            (3) The Secretary of Defense has decided to create a special 
        Department task force and to conduct other reviews to review 
        many of the Commission's recommendations.
            (4) The Secretary of Defense has decided to institute a 5 
        percent per year reduction of civilian personnel assigned to the 
        Office of the Secretary of Defense, including the Washington 
        Headquarters Service and the Defense Support Activities, for the 
        period from fiscal year 1996 through fiscal year 2001.
            (5) Over the ten-year period from 1986 through 1995, defense 
        spending in real dollars has been reduced by 34 percent and 
        military end-strengths have been reduced by 28 percent. During 
        the same period, the number of civilian employees of the Office 
        of the Secretary of Defense has increased by 22 percent.
            (6) To achieve greater efficiency and to revalidate the role 
        and mission of the Office of the Secretary of Defense, a 
        comprehensive review of the organizations and functions of that 
        Office and of the personnel needed to carry out those functions 
        is required.

    (b) Review.--The Secretary of Defense shall conduct a further review 
of the organizations and functions of the Office of the Secretary of 
Defense, including the Washington Headquarters Service and the Defense 
Support Activities, and the personnel needed to carry out those 
functions. The review shall include the following:
            (1) An assessment of the appropriate functions of the Office 
        and whether the Office of the Secretary of Defense or some of 
        its component parts should be organized along mission lines.
            (2) An assessment of the adequacy of the present 
        organizational structure to efficiently and effectively support 
        the Secretary in carrying out his responsibilities in a manner 
        that ensures civilian authority in the Department of Defense.
            (3) An assessment of the advantages and disadvantages of the 
        use of political appointees to fill the positions of the various 
        Under Secretaries of Defense, Assistant Secretaries of Defense, 
        and Deputy Under Secretaries of Defense.
            (4) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        the Joint Staff.
            (5) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        the military departments.
            (6) An assessment of the appropriate number of positions 
        referred to in paragraph (3) and of Deputy Assistant Secretaries 
        of Defense.
            (7) An assessment of whether some or any of the functions 
        currently performed by the Office of Humanitarian and Refugee 
        Affairs are more properly or effectively performed by another 
        agency of Government or elsewhere within the Department of 
        Defense.

[[Page 110 STAT. 401]]

            (8) An assessment of the efficacy of the Joint Requirements 
        Oversight Council and whether it is advisable or necessary to 
        establish a statutory charter for this organization.
            (9) An assessment of any benefits or efficiencies derived 
        from decentralizing certain functions currently performed by the 
        Office of the Secretary of Defense.
            (10) An assessment of the appropriate size, number, and 
        functional responsibilities of the Defense Agencies and other 
        Department of Defense support organizations.

    (c) Report.--Not later than March 1, 1996, the Secretary of Defense 
shall submit to the congressional defense committees a report containing 
--
            (1) his findings and conclusions resulting from the review 
        under subsection (b); and
            (2) a plan for implementing resulting recommendations, 
        including proposals for legislation (with supporting rationale) 
        that would be required as a result of the review.

    (d) <<NOTE: Effective date.>> Personnel Reduction.--(1) Effective 
October 1, 1999, the number of OSD personnel may not exceed 75 percent 
of the number of OSD personnel as of October 1, 1994.

    (2) For purposes of this subsection, the term ``OSD personnel'' 
means military and civilian personnel of the Department of Defense who 
are assigned to, or employed in, functions in the Office of the 
Secretary of Defense (including Direct Support Activities of that Office 
and the Washington Headquarters Services of the Department of Defense).
    (3) In carrying out reductions in the number of personnel assigned 
to, or employed in, the Office of the Department of Defense in order to 
comply with paragraph (1), the Secretary may not reassign functions 
solely in order to evade the requirement contained in that paragraph.
    (4) If the Secretary of Defense determines, and certifies to 
Congress, that the limitation in paragraph (1) would adversely affect 
United States national security, the limitation under paragraph (1) 
shall be applied by substituting ``80 percent'' for ``75 percent''.
SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF DEFENSE 
                        POSITIONS.

    (a) Reduction.--Section 138(a) of title 10, United States Code, is 
amended by striking out ``eleven'' and inserting in lieu thereof 
``ten''.

    (b) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by striking out ``(11)'' after ``Assistant Secretaries 
of Defense'' and inserting in lieu thereof ``(10)''.
SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS AND 
                        OFFICES IN OFFICE OF THE SECRETARY OF 
                        DEFENSE.

    (a) <<NOTE: 10 USC 131 note.>> Effective Date.--The amendments made 
by this section shall take effect on January 31, 1997.

    (b) Termination of Specification by Law of ASD Positions.--
Subsection (b) of section 138 of title 10, United States Code, is 
amended to read as follows:
    ``(b) The Assistant Secretaries shall perform such duties and 
exercise such powers as the Secretary of Defense may prescribe.''.
    (c) Repeal of Certain OSD Presidential Appointment Positions.--The 
following sections of chapter 4 of such title are repealed:

[[Page 110 STAT. 402]]

            (1) Section 133a, relating to the Deputy Under Secretary of 
        Defense for Acquisition and Technology.
            (2) Section 134a, relating to the Deputy Under Secretary of 
        Defense for Policy.
            (3) Section 137, relating to the Director of Defense 
        Research and Engineering.
            (4) Section 142, relating to the Assistant to the Secretary 
        of Defense for Nuclear and Chemical and Biological Defense 
        Programs.

    (d) Director of Military Relocation Assistance Programs.--Section 
1056 of such title is amended by striking out subsection (d).
    (e) Conforming Amendments Relating to Repeal of Various OSD 
Positions.--Chapter 4 of such title is further amended--
            (1) in section 131(b)--
                    (A) by striking out paragraphs (6) and (8); and
                    (B) by redesignating paragraphs (7), (9), (10), and 
                (11), as paragraphs (6), (7), (8), and (9), 
                respectively;
            (2) in section 138(d), by striking out ``the Under 
        Secretaries of Defense, and the Director of Defense Research and 
        Engineering'' and inserting in lieu thereof ``and the Under 
        Secretaries of Defense''; and
            (3) in the table of sections at the beginning of the 
        chapter, by striking out the items relating to sections 133a, 
        134a, 137, and 142.

    (f) Conforming Amendments Relating to Repeal of Specification of ASD 
Positions.--
            (1) Section 176(a)(3) of title 10, United States Code, is 
        amended--
                    (A) by striking out ``Assistant Secretary of Defense 
                for Health Affairs'' and inserting in lieu thereof 
                ``official in the Department of Defense with principal 
                responsibility for health affairs''; and
                    (B) by striking out ``Chief Medical Director of the 
                Department of Veterans Affairs'' and inserting in lieu 
                thereof ``Under Secretary for Health of the Department 
                of Veterans Affairs''.
            (2) Section 1216(d) of such title is amended by striking out 
        ``Assistant Secretary of Defense for Health Affairs'' and 
        inserting in lieu thereof ``official in the Department of 
        Defense with principal responsibility for health affairs''.
            (3) Section 1587(d) of such title is amended by striking out 
        ``Assistant Secretary of Defense for Manpower and Logistics'' 
        and inserting in lieu thereof ``official in the Department of 
        Defense with principal responsibility for personnel and 
        readiness''.
            (4) The text of section 10201 of such title is amended to 
        read as follows:

    ``The official in the Department of Defense with responsibility for 
overall supervision of reserve component affairs of the Department of 
Defense is the official designated by the Secretary of Defense to have 
that responsibility.''.
            (5) Section 1211(b)(2) of the National Defense Authorization 
        Act for Fiscal Years 1988 and 1989 (P.L. 100-180; 101 Stat 1155; 
        10 U.S.C. 167 note) is amended by striking out ``the Assistant 
        Secretary of Defense for Special Operations and Low Intensity 
        Conflict'' and inserting in lieu thereof ``the official

[[Page 110 STAT. 403]]

        designated by the Secretary of Defense to have principal 
        responsibility for matters relating to special operations and 
        low intensity conflict''.

    (g) Repeal of Minimum Number of Senior Staff for Specified Assistant 
Secretary of Defense.--Section 355 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1540) is 
repealed.
SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE 
                        SECRETARY OF DEFENSE FOR ATOMIC ENERGY.

    (a) In General.--(1) Section 142 of title 10, United States Code, is 
amended--
            (A) by striking out the section heading and inserting in 
        lieu thereof the following:
``Sec. 142. Assistant to the Secretary of Defense for Nuclear and 
                  Chemical and Biological Defense Programs'';
            (B) in subsection (a), by striking out ``Assistant to the 
        Secretary of Defense for Atomic Energy'' and inserting in lieu 
        thereof ``Assistant to the Secretary of Defense for Nuclear and 
        Chemical and Biological Defense Programs''; and
            (C) by striking out subsection (b) and inserting in lieu 
        thereof the following:

    ``(b) The Assistant to the Secretary shall--
            ``(1) advise the Secretary of Defense on nuclear energy, 
        nuclear weapons, and chemical and biological defense;
            ``(2) serve as the Staff Director of the Nuclear Weapons 
        Council established by section 179 of this title; and
            ``(3) perform such additional duties as the Secretary may 
        prescribe.''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 4 of such title is amended to read as follows:

``142. Assistant to the Secretary of Defense for Nuclear and Chemical 
           and Biological Defense Programs.''.

    (b) Conforming Amendments.--(1) Section 179(c)(2) of title 10, 
United States Code, is amended by striking out ``The Assistant to the 
Secretary of Defense for Atomic Energy'' and inserting in lieu thereof 
``The Assistant to the Secretary of Defense for Nuclear and Chemical and 
Biological Defense Programs''.
    (2) Section 5316 of title 5, United States Code, is amended by 
striking out ``The Assistant to the Secretary of Defense for Atomic 
Energy, Department of Defense.'' and inserting in lieu thereof the 
following:
            ``Assistant to the Secretary of Defense for Nuclear and 
        Chemical and Biological Defense Programs, Department of 
        Defense.''.

SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

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

``Sec. 181. Joint Requirements Oversight Council

    ``(a) Establishment.--The Secretary of Defense shall establish a 
Joint Requirements Oversight Council in the Department of Defense.

[[Page 110 STAT. 404]]

    ``(b) Mission.--In addition to other matters assigned to it by the 
President or Secretary of Defense, the Joint Requirements Oversight 
Council shall--
            ``(1) assist the Chairman of the Joint Chiefs of Staff in 
        identifying and assessing the priority of joint military 
        requirements (including existing systems and equipment) to meet 
        the national military strategy;
            ``(2) assist the Chairman in considering alternatives to any 
        acquisition program that has been identified to meet military 
        requirements by evaluating the cost, schedule, and performance 
        criteria of the program and of the identified alternatives; and
            ``(3) as part of its mission to assist the Chairman in 
        assigning joint priority among existing and future programs 
        meeting valid requirements, ensure that the assignment of such 
        priorities conforms to and reflects resource levels projected by 
        the Secretary of Defense through defense planning guidance.

    ``(c) Composition.--(1) The Joint Requirements Oversight Council is 
composed of--
            ``(A) the Chairman of the Joint Chiefs of Staff, who is the 
        chairman of the Council;
            ``(B) an Army officer in the grade of general;
            ``(C) a Navy officer in the grade of admiral;
            ``(D) an Air Force officer in the grade of general; and
            ``(E) a Marine Corps officer in the grade of general.

    ``(2) Members of the Council, other than the Chairman of the Joint 
Chiefs of Staff, shall be selected by the Chairman of the Joint Chiefs 
of Staff, after consultation with the Secretary of Defense, from 
officers in the grade of general or admiral, as the case may be, who are 
recommended for such selection by the Secretary of the military 
department concerned.
    ``(3) The functions of the Chairman of the Joint Chiefs of Staff as 
chairman of the Council may only be delegated to the Vice Chairman of 
the Joint Chiefs of Staff.''.

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

``181. Joint Requirements Oversight Council.''.

    (b) <<NOTE: 10 USC 181 note.>> Effective Date.--The amendments made 
by this section shall take effect on January 31, 1997.
SEC. 906. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION 
                        ORGANIZATION AND WORKFORCE.

    (a) Restructuring Report.--Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a report on the 
acquisition organization and workforce of the Department of Defense. The 
report shall include--
            (1) the plan described in subsection (b); and
            (2) the assessment of streamlining and restructuring options 
        described in subsection (c).

    (b) Plan for Restructuring.--(1) The Secretary shall include in the 
report under subsection (a) a plan on how to restructure the current 
acquisition organization of the Department of Defense in a manner that 
would enable the Secretary to accomplish the following:
            (A) Reduce the number of military and civilian personnel 
        assigned to, or employed in, acquisition organizations of the 
        Department of Defense (as defined by the Secretary) by 25

[[Page 110 STAT. 405]]

        percent over a period of five years, beginning on October 1, 
        1995.
            (B) Eliminate duplication of functions among existing 
        acquisition organizations of the Department of Defense.
            (C) Maximize opportunity for consolidation among acquisition 
        organizations of the Department of Defense to reduce management 
        overhead.

    (2) In the report, the Secretary shall also identify any statutory 
requirement or congressional directive that inhibits any proposed 
restructuring plan or reduction in the size of the defense acquisition 
organization.
    (3) In designing the plan under paragraph (1), the Secretary shall 
give full consideration to the process efficiencies expected to be 
achieved through the implementation of the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355), the Federal Acquisition 
Reform Act of 1995 (division D of this Act), and other ongoing 
initiatives to increase the use of commercial practices and reduce 
contract overhead in the defense procurement system.
    (c) Assessment of Specified Restructuring Options.--The Secretary 
shall include in the report under subsection (a) a detailed assessment 
of each of the following options for streamlining and restructuring the 
existing defense acquisition organization, together with a specific 
recommendation as to whether each such option should be implemented:
            (1) Consolidation of certain functions of the Defense 
        Contract Audit Agency and the Defense Contract Management 
        Command.
            (2) Contracting for performance of a significant portion of 
        the workload of the Defense Contract Audit Agency and other 
        Defense Agencies that perform acquisition functions.
            (3) Consolidation or selected elimination of Department of 
        Defense acquisition organizations.
            (4) Any other defense acquisition infrastructure 
        streamlining or restructuring option the Secretary may 
        determine.

    (d) Reduction of Acquisition Workforce.--(1) The Secretary of 
Defense shall accomplish reductions in defense acquisition personnel 
positions during fiscal year 1996 so that the total number of such 
personnel as of October 1, 1996, is less than the total number of such 
personnel as of October 1, 1995, by at least 15,000.
    (2) For purposes of this subsection, the term ``defense acquisition 
personnel'' means military and civilian personnel 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) with the exception of personnel who possess technical 
competence in trade-skill maintenance and repair positions involved in 
performing depot maintenance functions.
SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS FOR 
                        NUCLEAR WEAPONS MANAGEMENT IN EVENT OF 
                        ABOLITION OF DEPARTMENT OF ENERGY.

    (a) Report Required.--The Secretary of Defense shall submit to 
Congress a report concerning the nuclear weapons complex. The report 
shall set forth--
            (1) the Secretary's views on the effectiveness of the 
        Department of Energy in managing the nuclear weapons complex, 
        including the fulfillment of the requirements for nuclear weap

[[Page 110 STAT. 406]]

        ons established for the Department of Energy in the Nuclear 
        Posture Review; and
            (2) the Secretary's recommended plan for the incorporation 
        into the Department of Defense of the national security programs 
        of the Department of Energy if the Department of Energy should 
        be abolished and those programs be transferred to the Department 
        of Defense.

    (b) Definition.--For purposes of this section, the term ``Nuclear 
Posture Review'' means the Department of Defense Nuclear Posture Review 
as contained in the report entitled ``Report of the Secretary of Defense 
to the President and the Congress'', dated February 19, 1995, or in 
subsequent such reports.
    (c) Submission Of Report.--The report under subsection (a) shall be 
submitted not later than March 15, 1996.
SEC. 908.  <<NOTE: 10 USC 111 note.>> REDESIGNATION OF ADVANCED 
                        RESEARCH PROJECTS AGENCY.

    (a) Redesignation.--The agency in the Department of Defense known as 
the Advanced Research Projects Agency shall after the date of the 
enactment of this Act be designated as the Defense Advanced Research 
Projects Agency.
    (b) References.--Any reference in any law, regulation, document, 
record, or other paper of the United States or in any provision of this 
Act to the Advanced Research Projects Agency shall be considered to be a 
reference to the Defense Advanced Research Projects Agency.

                    Subtitle B--Financial Management

SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR FOREIGN 
                        CURRENCY FLUCTUATIONS.

    (a) Transfers to Military Personnel Accounts Authorized.--Section 
2779 of title 10, United States Code, is amended by adding at the end 
the following:
    ``(c) Transfers to Military Personnel Accounts.--The Secretary of 
Defense may transfer funds to military personnel appropriations for a 
fiscal year out of funds available to the Department of Defense for that 
fiscal year under the appropriation `Foreign Currency Fluctuations, 
Defense'.''.
    (b) Revision and Codification of Authority for Transfers to Foreign 
Currency Fluctuations Account.--Section 2779 of such title, as amended 
by subsection (a), is further amended by adding at the end the 
following:
    ``(d) Transfers to Foreign Currency Fluctuations Account.--(1) The 
Secretary of Defense may transfer to the appropriation `Foreign Currency 
Fluctuations, Defense' unobligated amounts of funds appropriated for 
operation and maintenance and unobligated amounts of funds appropriated 
for military personnel.
    ``(2) Any transfer from an appropriation under paragraph (1) shall 
be made not later than the end of the second fiscal year following the 
fiscal year for which the appropriation is provided.
    ``(3) Any transfer made pursuant to the authority provided in this 
subsection shall be limited so that the amount in the appropriation 
`Foreign Currency Fluctuations, Defense' does not exceed $970,000,000 at 
the time the transfer is made.''.

[[Page 110 STAT. 407]]

    (c) Conditions of Availability for Transferred Funds.--Section 2779 
of such title, as amended by subsection (b), is further amended by 
adding at the end the following:

    ``(e) Conditions of Availability for Transferred Funds.--Amounts 
transferred under subsection (c) or (d) shall be merged with and be 
available for the same purposes and for the same period as the 
appropriations to which transferred.''.
    (d) Repeal of Superseded Provisions.--(1) Section 767A of Public Law 
96-527 (94 Stat. 3093) is repealed.
    (2) Section 791 of the Department of Defense Appropriation Act, 1983 
(enacted in section 101(c) of Public Law 97-377; 96 Stat. 
1865) <<NOTE: 10 USC 114 note.>> is repealed.

    (e) Technical Amendments.--Section 2779 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking out ``(a)(1)'' and 
        inserting in lieu thereof ``(a) Transfers Back to Foreign 
        Currency Fluctuations Appropriation.--(1)'';
            (2) in subsection (a)(2), by striking out ``2d fiscal year'' 
        and inserting in lieu thereof ``second fiscal year''; and
            (3) in subsection (b), by striking out ``(b)(1)'' and 
        inserting in lieu thereof ``(b) Funding for Losses in Military 
        Construction and Family Housing.--(1)''.

    (f) <<NOTE: 10 USC 2779 note.>> Effective Date.--Subsections (c) and 
(d) of section 2779 of title 10, United States Code, as added by 
subsections (a) and (b), and the repeals made by subsection (d), shall 
apply only with respect to amounts appropriated for a fiscal year after 
fiscal year 1995.

SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

    (a) Establishment and Use.--(1) Chapter 131 of title 10, United 
States Code, is amended by inserting after section 2215 the following 
new section:

``Sec. 2216. Defense Modernization Account

    ``(a) Establishment.--There is established in the Treasury an 
account to be known as the `Defense Modernization Account'.
    ``(b) Transfers to Account.--(1)(A) Upon a determination by the 
Secretary of a military department or the Secretary of Defense with 
respect to Defense-wide appropriations accounts of the availability and 
source of funds described in subparagraph (B), that Secretary may 
transfer to the Defense Modernization Account during any fiscal year any 
amount of funds available to the Secretary described in that 
subparagraph. Such funds may be transferred to that account only after 
the Secretary concerned notifies the congressional defense committees in 
writing of the amount and source of the proposed transfer.
    ``(B) This subsection applies to the following funds available to 
the Secretary concerned:
            ``(i) Unexpired funds in appropriations accounts that are 
        available for procurement and that, as a result of economies, 
        efficiencies, and other savings achieved in carrying out a 
        particular procurement, are excess to the requirements of that 
        procurement.
            ``(ii) Unexpired funds that are available during the final 
        30 days of a fiscal year for support of installations and 
        facilities and that, as a result of economies, efficiencies, and 
        other sav

[[Page 110 STAT. 408]]

        ings, are excess to the requirements for support of 
        installations and facilities.

    ``(C) <<NOTE: Regulations.>> Any transfer under subparagraph (A) 
shall be made under regulations prescribed by the Secretary of Defense.

    ``(2) Funds referred to in paragraph (1) may not be transferred to 
the Defense Modernization Account if--
            ``(A) the funds are necessary for programs, projects, and 
        activities that, as determined by the Secretary, have a higher 
        priority than the purposes for which the funds would be 
        available if transferred to that account; or
            ``(B) the balance of funds in the account, after transfer of 
        funds to the account, would exceed $1,000,000,000.

    ``(3) Amounts credited to the Defense Modernization Account shall 
remain available for transfer until the end of the third fiscal year 
that follows the fiscal year in which the amounts are credited to the 
account.
    ``(4) The period of availability of funds for expenditure provided 
for in sections 1551 and 1552 of title 31 may not be extended by 
transfer into the Defense Modernization Account.
    ``(c) Scope of Use of Funds.--Funds transferred to the Defense 
Modernization Account from funds appropriated for a military department, 
Defense Agency, or other element of the Department of Defense shall be 
available in accordance with subsections (f) and (g) only for transfer 
to funds available for that military department, Defense Agency, or 
other element.
    ``(d) Authorized Use of Funds.--Funds available from the Defense 
Modernization Account pursuant to subsection (f) or (g) may be used for 
the following purposes:
            ``(1) For increasing, subject to subsection (e), the 
        quantity of items and services procured under a procurement 
        program in order to achieve a more efficient production or 
        delivery rate.
            ``(2) For research, development, test, and evaluation and 
        for procurement necessary for modernization of an existing 
        system or of a system being procured under an ongoing 
        procurement program.

    ``(e) Limitations.--(1) Funds in the Defense Modernization Account 
may not be used to increase the quantity of an item or services procured 
under a particular procurement program to the extent that doing so 
would--
            ``(A) result in procurement of a total quantity of items or 
        services in excess of--
                    ``(i) a specific limitation provided by law on the 
                quantity of the items or services that may be procured; 
                or
                    ``(ii) the requirement for the items or services as 
                approved by the Joint Requirements Oversight Council and 
                reported to Congress by the Secretary of Defense; or
            ``(B) result in an obligation or expenditure of funds in 
        excess of a specific limitation provided by law on the amount 
        that may be obligated or expended, respectively, for that 
        procurement program.

    ``(2) Funds in the Defense Modernization Account may not be used for 
a purpose or program for which Congress has not authorized 
appropriations.

    ``(3) Funds may not be transferred from the Defense Modernization 
Account in any year for the purpose of--

[[Page 110 STAT. 409]]

            ``(A) making an expenditure for which there is no 
        corresponding obligation; or
            ``(B) making an expenditure that would satisfy an 
        unliquidated or unrecorded obligation arising in a prior fiscal 
        year.

    ``(f) Transfer of Funds.--(1) The Secretary of Defense may transfer 
funds in the Defense Modernization Account to appropriations available 
for purposes set forth in subsection (d).
    ``(2) <<NOTE: Notification.>> Funds in the Defense Modernization 
Account may not be transferred under paragraph (1) until 30 days after 
the date on which the Secretary concerned notifies the congressional 
defense committees in writing of the amount and purpose of the proposed 
transfer.

    ``(3) The total amount of transfers from the Defense Modernization 
Account during any fiscal year under this subsection may not exceed 
$500,000,000.
    ``(g) Availability of Funds by Appropriation.--In addition to 
transfers under subsection (f), funds in the Defense Modernization 
Account may be made available for purposes set forth in subsection (d) 
in accordance with the provisions of appropriations Acts, but only to 
the extent authorized in an Act other than an appropriations Act.
    ``(h) Secretary To Act Through Comptroller.--The Secretary of 
Defense shall carry out this section through the Under Secretary of 
Defense (Comptroller), who shall be authorized to implement this section 
through the issuance of any necessary regulations, policies, and 
procedures after consultation with the General Counsel and Inspector 
General of the Department of Defense.
    ``(i) Quarterly Reports.--(1) Not later than 15 days after the end 
of each calendar quarter, the Secretary of Defense shall submit to the 
congressional committees specified in paragraph (2) a report on the 
Defense Modernization Account. Each such report shall set forth the 
following:
            ``(A) The amount and source of each credit to the account 
        during that quarter.
            ``(B) The amount and purpose of each transfer from the 
        account during that quarter.
            ``(C) The balance in the account at the end of the quarter 
        and, of such balance, the amount attributable to transfers to 
        the account from each Secretary concerned.

    ``(2) The committees referred to in paragraph (1) are the 
congressional defense committees and the Committee on Governmental 
Affairs of the Senate and the Committee on Government Reform and 
Oversight of the House of Representatives.
    ``(j) Definitions.--In this section:
            ``(1) The term `Secretary concerned' includes the Secretary 
        of Defense with respect to Defense-wide appropriations accounts.
            ``(2) The term `unexpired funds' means funds appropriated 
        for a definite period that remain available for obligation.
            ``(3) The term `congressional defense committees' means--
                    ``(A) the Committee on Armed Services and the 
                Committee on Appropriations of the Senate; and
                    ``(B) the Committee on National Security and the 
                Committee on Appropriations of the House of 
                Representatives.''.

[[Page 110 STAT. 410]]

    (2) The table of sections at the beginning of chapter 131 of such 
title is amended by inserting after the item relating to section 2215 
the following new item:

``2216. Defense Modernization Account.''.

    (b) <<NOTE: 10 USC 2216 note.>> Effective Date.--Section 2216 of 
title 10, United States Code (as added by subsection (a)), shall apply 
only to funds appropriated for fiscal years after fiscal year 1995.

    (c) <<NOTE: 10 USC 2216 note.>> Expiration of Authority and 
Account.--(1) The authority under section 2216(b) of title 10, United 
States Code (as added by subsection (a)), to transfer funds into the 
Defense Modernization Account terminates at the close of September 30, 
2003.

    (2) Three years after the termination date specified in paragraph 
(1), the Defense Modernization Account shall be closed and any remaining 
balance in the account shall be canceled and thereafter shall not be 
available for any purpose.
    (d) <<NOTE: Reports. 10 USC 2216 note.>> GAO Reviews.--(1) The 
Comptroller General of the United States shall conduct two reviews of 
the administration of the Defense Modernization Account. In each review, 
the Comptroller General shall assess the operations and benefits of the 
account.

    (2) Not later than March 1, 2000, the Comptroller General shall--
            (A) complete the first review; and
            (B) submit to the specified committees of Congress an 
        initial report on the administration and benefits of the Defense 
        Modernization Account.

    (3) Not later than March 1, 2003, the Comptroller General shall--
            (A) complete the second review; and
            (B) submit to the specified committees of Congress a final 
        report on the administration and benefits of the Defense 
        Modernization Account.

    (4) Each such report shall include any recommended legislation 
regarding the account that the Comptroller General considers 
appropriate.
    (5) For purposes of this subsection, the term ``specified committees 
of Congress'' means the congressional committees referred to in section 
2216(i)(2) of title 10, United States Code, as added by subsection (a).
SEC. 913. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
                        OFFICIALS.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United 
States Code, is amended by striking out paragraph (2) and inserting in 
lieu thereof the following:
            ``(2) The Department of Defense.''.

    (2) Section 2773 of title 10, United States Code, is amended--
            (A) in subsection (a)--
                    (i) in paragraph (1), by striking out ``With the 
                approval of a Secretary of a military department when 
                the Secretary considers it necessary, a disbursing 
                official of the military department'' and inserting in 
                lieu thereof ``Subject to paragraph (3), a disbursing 
                official of the Department of Defense''; and
                    (ii) by adding at the end the following new 
                paragraph:

    ``(3) A disbursing official may make a designation under paragraph 
(1) only with the approval of the Secretary of Defense or,

[[Page 110 STAT. 411]]

in the case of a disbursing official of a military department, the 
Secretary of that military department.''; and
            (B) in subsection (b)(1), by striking out ``any military 
        department'' and inserting in lieu thereof ``the Department of 
        Defense''.

    (b) Designation of Members of the Armed Forces To Have Authority To 
Certify Vouchers.--Section 3325(b) of title 31, United States Code, is 
amended to read as follows:
    ``(b) In addition to officers and employees referred to in 
subsection (a)(1)(B) of this section as having authorization to certify 
vouchers, members of the armed forces under the jurisdiction of the 
Secretary of Defense may certify vouchers when authorized, in writing, 
by the Secretary to do so.''.
    (c) Conforming Amendments.--(1) Section 1012 of title 37, United 
States Code, is amended by striking out ``Secretary concerned'' both 
places it appears and inserting in lieu thereof ``Secretary of 
Defense''.
    (2) Section 1007(a) of title 37, United States Code, is amended by 
striking out ``Secretary concerned'' and inserting in lieu thereof 
``Secretary of Defense, or upon the denial of relief of an officer 
pursuant to section 3527 of title 31''.
    (3)(A) Section 7863 of title 10, United States Code, is amended--
            (i) in the first sentence, by striking out ``disbursements 
        of public moneys or'' and ``the money was paid or''; and
            (ii) in the second sentence, by striking out ``disbursement 
        or''.

    (B)(i) The heading of such section is amended to read as follows:

``Sec. 7863. Disposal of public stores by order of commanding officer''.

    (ii) The item relating to such section in the table of sections at 
the beginning of chapter 661 of such title is amended to read as 
follows:

``7863. Disposal of public stores by order of commanding officer.''.

    (4) Section 3527(b)(1) of title 31, United States Code, is amended--
            (A) by striking out ``a disbursing official of the armed 
        forces'' and inserting in lieu thereof ``an official of the 
        armed forces referred to in subsection (a)'';
            (B) by striking out ``records,'' and inserting in lieu 
        thereof ``records, or a payment described in section 
        3528(a)(4)(A) of this title,'';
            (C) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), and realigning such clauses four 
        ems from the left margin;
            (D) by inserting before clause (i), as so redesignated, the 
        following:
            ``(A) in the case of a physical loss or deficiency--'';
            (E) in clause (iii), as so redesignated, by striking out the 
        period at the end and inserting in lieu thereof ``; or''; and
            (F) by adding at the end the following:
            ``(B) in the case of a payment described in section 
        3528(a)(4)(A) of this title, the Secretary of Defense or the 
        Secretary of the appropriate military department, after taking a 
        diligent collection action, finds that the criteria of section 
        3528(b)(1) of this title are satisfied.''.

[[Page 110 STAT. 412]]

    (5) Section 3528 of title 31, United States Code, is amended by 
striking out subsection (d).

SEC. 914. FISHER HOUSE TRUST FUNDS.

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

``Sec. 2221. Fisher House trust funds

    ``(a) Establishment.--The following trust funds are established on 
the books of the Treasury:
            ``(1) The Fisher House Trust Fund, Department of the Army.
            ``(2) The Fisher House Trust Fund, Department of the Air 
        Force.

    ``(b) Investment.--Funds in the trust funds may be invested in 
securities of the United States. Earnings and gains realized from the 
investment of funds in a trust fund shall be credited to the trust fund.
    ``(c) Use of Funds.--(1) Amounts in the Fisher House Trust Fund, 
Department of the Army, that are attributable to earnings or gains 
realized from investments shall be available for the operation and 
maintenance of Fisher houses that are located in proximity to medical 
treatment facilities of the Army.
    ``(2) Amounts in the Fisher House Trust Fund, Department of the Air 
Force, that are attributable to earnings or gains realized from 
investments shall be available for the operation and maintenance of 
Fisher houses that are located in proximity to medical treatment 
facilities of the Air Force.
    ``(3) The use of funds under this section is subject to section 
1321(b)(2) of title 31.
    ``(d) Fisher House Defined.--In this section, the term `Fisher 
house' means a housing facility that--
            ``(1) is located in proximity to a medical treatment 
        facility of the Army or the Air Force; and
            ``(2) is available for residential use on a temporary basis 
        by patients at such facilities, members of the family of such 
        patients, and others providing the equivalent of familial 
        support for such patients.''.

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

``2221. Fisher House trust funds.''.

    (b) <<NOTE: 10 USC 2221 note.>> Corpus of Trust Funds.--(1) The 
Secretary of the Treasury shall--
            (A) close the accounts established with the funds that were 
        required by section 8019 of Public Law 102-172 (105 Stat. 1175) 
        and section 9023 of Public Law 102-396 (106 Stat. 1905) to be 
        transferred to an appropriated trust fund; and
            (B) transfer the amounts in such accounts to the Fisher 
        House Trust Fund, Department of the Army, established by 
        subsection (a)(1) of section 2221 of title 10, United States 
        Code, as added by subsection (a).

    (2) The Secretary of the Air Force shall transfer to the Fisher 
House Trust Fund, Department of the Air Force, established by subsection 
(a)(2) of section 2221 of title 10, United States Code (as added by 
section (a)), all amounts in the accounts for Air Force installations 
and other facilities that, as of the date of the

[[Page 110 STAT. 413]]

enactment of this Act, are available for operation and maintenance of 
Fisher houses (as defined in subsection (d) of such section 2221).
    (c) Conforming Amendments.--Section 1321 of title 31, United States 
Code, is amended--
            (1) by adding at the end of subsection (a) the following:
            ``(92) Fisher House Trust Fund, Department of the Army.
            ``(93) Fisher House Trust Fund, Department of the Air 
        Force.''; and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in the second sentence, by striking out 
                ``Amounts accruing to these funds (except to the trust 
                fund `Armed Forces Retirement Home Trust Fund')'' and 
                inserting in lieu thereof ``Except as provided in 
                paragraph (2), amounts accruing to these funds'';
                    (C) by striking out the third sentence; and
                    (D) by adding at the end the following:

    ``(2) Expenditures from the following trust funds may be made only 
under annual appropriations and only if the appropriations are 
specifically authorized by law:
            ``(A) Armed Forces Retirement Home Trust Fund.
            ``(B) Fisher House Trust Fund, Department of the Army.
            ``(C) Fisher House Trust Fund, Department of the Air 
        Force.''.

    (d) Repeal of Superseded Provisions.--The following provisions of 
law are repealed:
            (1) Section 8019 of Public Law 102-172 (105 Stat. 1175).
            (2) Section 9023 of Public Law 102-396 (106 Stat. 1905).
            (3) Section 8019 of Public Law 103-139 (107 Stat. 1441).
            (4) Section 8017 of Public Law 103-335 (108 Stat. 2620; 10 
        U.S.C. 1074 note).
SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY AND 
                        EXTRAORDINARY EXPENSES.

    Section 127 of title 10, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c)(1) <<NOTE: Notification.>>  Funds may not be obligated or 
expended in an amount in excess of $500,000 under the authority of 
subsection (a) or (b) until the Secretary of Defense has notified 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 of the intent to obligate 
or expend the funds, and--
            ``(A) in the case of an obligation or expenditure in excess 
        of $1,000,000, 15 days have elapsed since the date of the 
        notification; or
            ``(B) in the case of an obligation or expenditure in excess 
        of $500,000, but not in excess of $1,000,000, 5 days have 
        elapsed since the date of the notification.

    ``(2) Subparagraph (A) or (B) of paragraph (1) shall not apply to an 
obligation or expenditure of funds otherwise covered by such 
subparagraph if the Secretary of Defense determines that the national 
security objectives of the United States will be compromised by the 
application of the subparagraph to the obligation or 
expenditure. <<NOTE: Notification.>> If the Secretary makes a 
determination with respect

[[Page 110 STAT. 414]]

to an obligation or expenditure under the preceding sentence, the 
Secretary shall immediately notify the committees referred to in 
paragraph (1) that such obligation or expenditure is necessary and 
provide any relevant information (in classified form, if necessary) 
jointly to the chairman and ranking minority member (or their designees) 
of such committees.

    ``(3) A notification under paragraph (1) and information referred to 
in paragraph (2) shall include the amount to be obligated or expended, 
as the case may be, and the purpose of the obligation or expenditure.''.

                       TITLE X--GENERAL PROVISIONS

                      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 
1996 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary of Defense 
may transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to transfer 
authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. <<NOTE: 10 USC 114 note.>> INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee on conference to accompany the bill H.R. 1530 of the One 
Hundred Fourth Congress and transmitted to the President is hereby 
incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions,

[[Page 110 STAT. 415]]

and requirements as are set out for that program, project, or activity 
in the Classified Annex.
    (d) <<NOTE: President.>> Distribution of Classified Annex.--The 
President shall provide for appropriate distribution of the Classified 
Annex, or of appropriate portions of the annex, within the executive 
branch of the Government.
SEC. 1003. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED OPERATIONS.

    (a) Revision of Funding Mechanism.--(1) Section 127a of title 10, 
United States Code, is amended to read as follows:
``Sec. 127a. Operations for which funds are not provided in 
                    advance: funding mechanisms

    ``(a) In General.--(1) The Secretary of Defense shall use the 
procedures prescribed by this section with respect to any operation 
specified in paragraph (2) that involves--
            ``(A) the deployment (other than for a training exercise) of 
        elements of the Armed Forces for a purpose other than a purpose 
        for which funds have been specifically provided in advance; or
            ``(B) the provision of humanitarian assistance, disaster 
        relief, or support for law enforcement (including immigration 
        control) for which funds have not been specifically provided in 
        advance.

    ``(2) This section applies to--
            ``(A) any operation the incremental cost of which is 
        expected to exceed $50,000,000; and
            ``(B) any other operation the expected incremental cost of 
        which, when added to the expected incremental costs of other 
        operations that are currently ongoing, is expected to result in 
        a cumulative incremental cost of ongoing operations of the 
        Department of Defense in excess of $100,000,000.

Any operation the incremental cost of which is expected not to exceed 
$10,000,000 shall be disregarded for the purposes of subparagraph (B).
    ``(3) <<NOTE: Notification.>> Whenever an operation to which this 
section applies is commenced or subsequently becomes covered by this 
section, the Secretary of Defense shall designate and identify that 
operation for the purposes of this section and shall promptly notify 
Congress of that designation (and of the identification of the 
operation).

    ``(4) This section does not provide authority for the President or 
the Secretary of Defense to carry out any operation, but establishes 
mechanisms for the Department of Defense by which funds are provided for 
operations that the armed forces are required to carry out under some 
other authority.
    ``(b) Waiver of Requirement To Reimburse Support Units.--(1) The 
Secretary of Defense shall direct that, when a unit of the Armed Forces 
participating in an operation described in subsection (a) receives 
services from an element of the Department of Defense that operates 
through the Defense Business Operations Fund (or a successor fund), such 
unit of the Armed Forces may not be required to reimburse that element 
for the incremental costs incurred by that element in providing such 
services, notwithstanding any other provision of law or any Government 
accounting practice.

[[Page 110 STAT. 416]]

    ``(2) <<NOTE: Records.>> The amounts which but for paragraph (1) 
would be required to be reimbursed to an element of the Department of 
Defense (or a fund) shall be recorded as an expense attributable to the 
operation and shall be accounted for separately.

    ``(c) Transfer Authority.--(1) Whenever there is an operation of the 
Department of Defense described in subsection (a), the Secretary of 
Defense may transfer amounts described
in paragraph (3) to accounts from which incremental expenses for that 
operation were incurred in order to reimburse those accounts for those 
incremental expenses. Amounts so transferred shall be merged with and be 
available for the same purposes as the accounts to which transferred.

    ``(2) The total amount that the Secretary of Defense may transfer 
under the authority of this section in any fiscal year is $200,000,000.
    ``(3) Transfers under this subsection may only be made from amounts 
appropriated to the Department of Defense for any fiscal year that 
remain available for obligation, other than amounts within any operation 
and maintenance appropriation that are available for (A) an account 
(known as a budget activity 1 account) that is specified as being for 
operating forces, or (B) an account (known as a budget activity 2 
account) that is specified as being for mobilization.
    ``(4) The authority provided by this subsection is in addition to 
any other authority provided by law authorizing the transfer of amounts 
available to the Department of Defense. However, the Secretary may not 
use any such authority under another provision of law for a purpose 
described in paragraph (1) if there is authority available under this 
subsection for that purpose.
    ``(5) The authority provided by this subsection to transfer amounts 
may not be used to provide authority for an activity that has been 
denied authorization by Congress.
    ``(6) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the amount 
authorized for the account to which the amount is transferred by an 
amount equal to the amount transferred.
    ``(d) Report Upon Designation of an Operation.--Within 45 days after 
the Secretary of Defense identifies an operation pursuant to subsection 
(a)(2), the Secretary of Defense shall submit to Congress a report that 
sets forth the following:
            ``(1) The manner by which the Secretary proposes to obtain 
        funds for the cost to the United States of the operation, 
        including a specific discussion of how the Secretary proposes to 
        restore balances in--
                    ``(A) the Defense Business Operations Fund (or a 
                successor fund), or
                    ``(B) the accounts from which the Secretary 
                transfers funds under the authority of subsection (c), 
                to the levels that would have been anticipated but for 
                the provisions of subsection (c).
            ``(2) If the operation is described in subsection (a)(1)(B), 
        a justification why the budgetary resources of another 
        department or agency of the Federal Government, instead of 
        resources of the Department of Defense, are not being used for 
        carrying out the operation.
            ``(3) The objectives of the operation.

[[Page 110 STAT. 417]]

            ``(4) The estimated duration of the operation and of any 
        deployment of armed forces personnel in such operation.
            ``(5) The estimated incremental cost of the operation to the 
        United States.
            ``(6) The exit criteria for the operation and for the 
        withdrawal of the elements of the armed forces involved in the 
        operation.

    ``(e) Limitations.--(1) The Secretary may not restore balances in 
the Defense Business Operations Fund through increases in rates charged 
by that fund in order to compensate for costs incurred and not 
reimbursed due to subsection (b).
    ``(2) The Secretary may not restore balances in the Defense Business 
Operations Fund or any other fund or account through the use of 
unobligated amounts in an operation and maintenance appropriation that 
are available within that appropriation for (A) an account (known as a 
budget activity 1 account) that is specified as being for operating 
forces, or (B) an account (known as a budget activity 2 account) that is 
specified as being for mobilization.
    ``(f) Submission of Requests for Supplemental Appropriations.--It is 
the sense of Congress that whenever there is an operation described in 
subsection (a), the President should, not later than 90 days after the 
date on which notification is provided pursuant to subsection (a)(3), 
submit to Congress a request for the enactment of supplemental 
appropriations for the then-current fiscal year in order to provide 
funds to replenish the Defense Business Operations Fund or any other 
fund or account of the Department of Defense from which funds for the 
incremental expenses of that operation were derived under this section 
and should, as necessary, submit subsequent requests for the enactment 
of such appropriations.
    ``(g) Incremental Costs.--For purposes of this section, incremental 
costs of the Department of Defense with respect to an operation are the 
costs of the Department that are directly attributable to the operation 
(and would not have been incurred but for the operation). Incremental 
costs do not include the cost of property or services acquired by the 
Department that are paid for by a source outside the Department or out 
of funds contributed by such a source.
    ``(h) Relationship to War Powers Resolution.--This section may not 
be construed as altering or superseding the War Powers Resolution. This 
section does not provide authority to conduct any military operation.
    ``(i) GAO Compliance Reviews.--The Comptroller General of the United 
States shall from time to time, and when requested by a committee of 
Congress, conduct a review of the defense funding structure under this 
section to determine whether the Department of Defense is complying with 
the requirements and limitations of this section.''.
    (2) The item relating to section 127a in the table of sections at 
the beginning of chapter 3 of such title is amended to read as follows:

``127a. Operations for which funds are not provided in advance: funding 
           mechanisms.''.

    (b) <<NOTE: 10 USC 127a note.>> Effective Date.--The amendment to 
section 127a of title 10, United States Code, made by subsection (a) 
shall take effect on the date of the enactment of this Act and shall 
apply to any

[[Page 110 STAT. 418]]

operation of the Department of Defense that is in effect on or after 
that date, whether such operation is begun before, on, or after such 
date of enactment. In the case of an operation begun before such date, 
any reference in such section to the commencement of such operation 
shall be treated as referring to the effective date under the preceding 
sentence.

SEC. 1004. OPERATION PROVIDE COMFORT.

    (a) Authorization of Amounts Available.--Within the total amounts 
authorized to be appropriated in titles III and IV, there is hereby 
authorized to be appropriated for fiscal year 1996 for costs associated 
with Operation Provide Comfort--
            (1) $136,300,000 for operation and maintenance costs; and
            (2) $7,000,000 for incremental military personnel costs.

    (b) Report.--Not more than $70,000,000 of the amount appropriated 
under subsection (a) may be obligated until the Secretary of Defense 
submits to the congressional defense committees a report on Operation 
Provide Comfort which includes the following:
            (1) A detailed presentation of the projected costs to be 
        incurred by the Department of Defense for Operation Provide 
        Comfort during fiscal year 1996, together with a discussion of 
        missions and functions expected to be performed by the 
        Department as part of that operation during that fiscal year.
            (2) A detailed presentation of the projected costs to be 
        incurred by other departments and agencies of the Federal 
        Government participating in or providing support to Operation 
        Provide Comfort during fiscal year 1996.
            (3) A discussion of available options to reduce the 
        involvement of the Department of Defense in those aspects of 
        Operation Provide Comfort that are not directly related to the 
        military mission of the Department of Defense.
            (4) A plan establishing an exit strategy for United States 
        involvement in, and support for, Operation Provide Comfort.

    (c) Operation Provide Comfort.--For purposes of this section, the 
term ``Operation Provide Comfort'' means the operation of the Department 
of Defense that as of October 30, 1995, is designated as Operation 
Provide Comfort.

SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

    (a) Authorization of Amounts Available.--Within the total amounts 
authorized to be appropriated in titles III and IV, there is hereby 
authorized to be appropriated for fiscal year 1996 for costs associated 
with Operation Enhanced Southern Watch--
            (1) $433,400,000 for operation and maintenance costs; and
            (2) $70,400,000 for incremental military personnel costs.

    (b) Report.--(1) Of the amounts specified in subsection (a), not 
more than $250,000,000 may be obligated until the Secretary of Defense 
submits to the congressional defense committees a report designating 
Operation Enhanced Southern Watch, or significant elements thereof, as a 
forward presence operation for which funding should be budgeted as part 
of the annual defense budget process in the same manner as other 
activities of the Armed Forces involving forward presence or forward 
deployed forces.
    (2) The report shall set forth the following:
            (A) The expected duration and annual costs of the various 
        elements of Operation Enhanced Southern Watch.
            (B) Those elements of Operation Enhanced Southern Watch that 
        are semi-permanent in nature and should be budgeted

[[Page 110 STAT. 419]]

        in the future as part of the annual defense budget process in 
        the same manner as other activities of the Armed Forces 
        involving forward presence or forward deployed forces.
            (C) The political and military objectives associated with 
        Operation Enhanced Southern Watch.
            (D) The contributions (both in-kind and actual) by other 
        nations to the costs of conducting Operation Enhanced Southern 
        Watch.

    (c) Operation Enhanced Southern Watch.--For purposes of this 
section, the term ``Operation Enhanced Southern Watch'' means the 
operation of the Department of Defense that as of October 30, 1995, is 
designated as Operation Enhanced Southern Watch.
SEC. 1006. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL 
                          YEAR 1995 DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may be 
obligated and expended for programs, projects, and activities of the 
Department of Defense in accordance with fiscal year 1995 defense 
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are 
the amounts provided for programs, projects, and activities of the 
Department of Defense in fiscal year 1995 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1995 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1995 defense appropriations.--The term 
        ``fiscal year 1995 defense appropriations'' means amounts 
        appropriated or otherwise made available to the Department of 
        Defense for fiscal year 1995 in the Department of Defense 
        Appropriations Act, 1995 (Public Law 103-335).
            (2) Fiscal year 1995 defense authorizations.--The term 
        ``fiscal year 1995 defense authorizations'' means amounts 
        authorized to be appropriated for the Department of Defense for 
        fiscal year 1995 in the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337).
SEC. 1007. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                          APPROPRIATIONS FOR FISCAL YEAR 1995.

    (a) Adjustment to Previous Authorizations.--Amounts authorized to be 
appropriated to the Department of Defense for fiscal year 1995 in the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337) 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 title I of the Emergency Supplemental 
Appropriations and Rescissions for the Department of Defense to Preserve 
and Enhance Military Readiness Act of 1995 (Public Law 104-6; 109 Stat. 
73).
    (b) New Authorization.--The appropriation provided in section 104 of 
such Act (109 Stat. 79) is hereby authorized.
SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS FROM 
                          REVISED ECONOMIC ASSUMPTIONS.

    (a) Reduction.--The total amount authorized to be appropriated in 
titles I, II, and III of this Act is hereby reduced by $832,000,000 to 
reflect savings from revised economic assumptions.

[[Page 110 STAT. 420]]

Such reduction shall be made from accounts in those titles as follows:
            Operation and Maintenance, Army, $54,000,000.
            Operation and Maintenance, Navy, $80,000,000.
            Operation and Maintenance, Marine Corps, $9,000,000.
            Operation and Maintenance, Air Force, $51,000,000.
            Operation and Maintenance, Defense-Wide, $36,000,000.
            Operation and Maintenance, Army Reserve, $4,000,000.
            Operation and Maintenance, Navy Reserve, $4,000,000.
            Operation and Maintenance, Marine Corps Reserve, $1,000,000.
            Operation and Maintenance, Air Force Reserve, $3,000,000.
            Operation and Maintenance, Army National Guard, $7,000,000.
            Operation and Maintenance, Air National Guard, $7,000,000.
            Drug Interdiction and Counter-Drug Activities, Defense, 
        $5,000,000.
            Environmental Restoration, Defense, $11,000,000.
            Overseas Humanitarian, Disaster, and Civic Aid, $1,000,000.
            Former Soviet Union Threat Reduction, $2,000,000.
            Defense Health Program, $51,000,000.
            Aircraft Procurement, Army, $9,000,000.
            Missile Procurement, Army, $5,000,000.
            Procurement of Weapons and Tracked Combat Vehicles, Army, 
        $10,000,000.
            Procurement of Ammunition, Army, $6,000,000.
            Other Procurement, Army, $17,000,000.
            Aircraft Procurement, Navy, $29,000,000.
            Weapons Procurement, Navy, $13,000,000.
            Shipbuilding and Conversion, Navy, $42,000,000.
            Other Procurement, Navy, $18,000,000.
            Procurement, Marine Corps, $4,000,000.
            Aircraft Procurement, Air Force, $50,000,000.
            Missile Procurement, Air Force, $29,000,000.
            Other Procurement, Air Force, $45,000,000.
            Procurement, Defense-Wide, $16,000,000.
            Chemical Agents and Munitions Destruction, Defense, 
        $5,000,000.
            Research, Development, Test and Evaluation, Army, 
        $20,000,000.
            Research, Development, Test and Evaluation, Navy, 
        $50,000,000.
            Research, Development, Test and Evaluation, Air Force, 
        $79,000,000.
            Research, Development, Test and Evaluation, Defense-Wide, 
        $57,000,000.
            Research, Development, Test and Evaluation, Defense, 
        $2,000,000.

    (b) Reductions To Be Applied Proportionally.--Reductions under this 
section shall be applied proportionally to each budget activity, 
activity group, and subactivity group and to each program, project, and 
activity within each account.

[[Page 110 STAT. 421]]

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1011. IOWA CLASS BATTLESHIPS.

    (a) Return to Naval Vessel Register.--The Secretary of the Navy 
shall list on the Naval Vessel Register, and maintain on such register, 
at least two of the Iowa-class battleships that were stricken from the 
register in February 1995.
    (b) Support.--The Secretary shall retain the existing logistical 
support necessary for support of at least two operational Iowa class 
battleships in active service, including technical manuals, repair and 
replacement parts, and ordnance.
    (c) Selection of Ships.--The Secretary shall select for listing on 
the Naval Vessel Register under subsection (a) Iowa class battleships 
that are in good material condition and can provide adequate fire 
support for an amphibious assault.
    (d) Replacement Fire-Support Capability.--
(1) <<NOTE: Certification. Termination date.>> If the Secretary of the 
Navy makes a certification described in paragraph (2), the requirements 
of subsections (a) and (b) shall terminate, effective 60 days after the 
date of the submission of such 
certification.

    (2) A certification referred to in paragraph (1) is a certification 
submitted by the Secretary of the Navy in writing to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives that the Navy has within the fleet an 
operational surface fire-support capability that equals or exceeds the 
fire-support capability that the Iowa class battleships listed on the 
Naval Vessel Register pursuant to subsection (a) would, if in active 
service, be able
to provide for Marine Corps amphibious assaults and operations ashore.
SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                        COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is authorized to 
transfer on a grant basis under section 516 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321j) frigates of the Oliver Hazard Perry class 
to other countries as follows:
            (1) To the Government of Bahrain, the guided missile frigate 
        Jack Williams (FFG 24).
            (2) To the Government of Egypt, the frigate Copeland (FFG 
        25).
            (3) To the Government of Turkey, the frigates Clifton 
        Sprague (FFG 16) and Antrim (FFG 20).

    (b) Transfers by Lease or Sale.--The Secretary of the Navy is 
authorized to transfer on a lease basis under section 61 of the Arms 
Export Control Act (22 U.S.C. 2796) or on a sale basis under section 21 
of the Arms Export Control Act (22 U.S.C. 2761) frigates of the Oliver 
Hazard Perry class to other countries as follows:
            (1) To the Government of Egypt, the frigate Duncan (FFG 10).
            (2) To the Government of Oman, the guided missile frigate 
        Mahlon S. Tisdale (FFG 27).
            (3) To the Government of Turkey, the frigate Flatley (FFG 
        21).
            (4) To the Government of the United Arab Emirates, the 
        guided missile frigate Gallery (FFG 26).

[[Page 110 STAT. 422]]

    (c) Financing for Transfers by Lease.--Section 23 of the Arms Export 
Control Act (22 U.S.C. 2763) may be used to provide financing for any 
transfer by lease under subsection (b) in the same manner as if such 
transfer were a procurement by the recipient nation of a defense 
article.
    (d) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by subsection (a) or (b) shall 
be charged to the recipient.
    (e) Expiration of Authority.--The authority to transfer a vessel 
under subsection (a) and under subsection (b) shall expire at the end of 
the two-year period beginning on the date of the enactment of this Act, 
except that a lease entered into during that period under any provision 
of subsection (b) may be renewed.
    (f) Repair and Refurbishment in United States Shipyards.--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.
    (g) Prohibition on Certain Transfers of Vessels on Grant Basis.--(1) 
Section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) is 
amended by adding at the end the following new subsection:
    ``(g) Prohibition on Certain Transfers of Vessels on Grant Basis.--
(1) The President may not transfer on a grant basis under this section a 
vessel that is in excess of 3,000 tons or that is less than 20 years of 
age.
    ``(2) If the President determines that it is in the national 
security interests of the United States to transfer a particular vessel 
on a grant basis under this section, the President may request that 
Congress enact legislation exempting the transfer from the prohibition 
in paragraph (1).''.
    (2) <<NOTE: Applicability. 22 USC 2321j note.>> The amendment made 
by paragraph (1) shall apply with respect to the transfer of a vessel on 
or after the date of the enactment of this Act (other than a vessel the 
transfer of which is authorized by subsection (a) or by law before the 
date of the enactment of this Act).

SEC. 1013. CONTRACT OPTIONS FOR LMSR VESSELS.

    (a) Findings.--Congress makes the following findings:
            (1) A requirement for the Department of the Navy to acquire 
        19 large, medium-speed, roll-on/roll-off (LMSR) vessels was 
        established by the Secretary of Defense in the Mobility 
        Requirements Study conducted after the Persian Gulf War pursuant 
        to section 909 of the National Defense Authorization Act for 
        Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1623) and was 
        revalidated by the Secretary of Defense in the report entitled 
        ``Mobility Requirements Study Bottom-Up Review Update'', 
        submitted to Congress in April 1995.
            (2) The Strategic Sealift Program is a vital element of the 
        national military strategy calling for the Nation to be able to 
        fight and win two nearly simultaneous major regional 
        contingencies.
            (3) The Secretary of the Navy has entered into contracts 
        with shipyards covering acquisition of a total of 17 such LMSR 
        vessels, of which five are vessel conversions and 12 are new

[[Page 110 STAT. 423]]

        construction vessels. Under those contracts, the Secretary has 
        placed orders for the acquisition of 11 vessels and has options 
        for the acquisition of six more, all of which would be new 
        construction vessels. The options allow the Secretary to place 
        orders for one vessel to be constructed at each of two shipyards 
        for award before December 31, 1995, December 31, 1996, and 
        December 31, 1997, respectively.
            (4) Acquisition of an additional two such LMSR vessels, for 
        a total of 19 vessels (the requirement described in paragraph 
        (1)) would contribute to preservation of the industrial base of 
        United States shipyards capable of building auxiliary and 
        sealift vessels.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Navy should plan for, and budget to provide for, the 
acquisition as soon as possible of a total of 19 large, medium-speed, 
roll-on/roll-off (LMSR) vessels (the number determined to be required in 
the Mobility Requirements Study referred to in subsection (a)(1)), 
rather than only 17 such vessels (the number of vessels under contract 
as of May 1995).
    (c) Additional New Construction Contract Option.--The Secretary of 
the Navy should negotiate with each of the two shipyards holding new 
construction contracts referred to in subsection (a)(3) (Department of 
the Navy contracts numbered N00024-93-C-2203 and N00024-93-C-2205) for 
an option under each such contract for construction of one additional 
such LMSR vessel, with such option to be available to the Secretary for 
exercise during 1995, 1996, or 1997, subject to the availability of 
funds authorized and appropriated for such purpose. Nothing in this 
subsection shall be construed to preclude the Secretary of the Navy from 
competing the award of the two options between the two shipyards holding 
new construction contracts referred to in subsection (a)(3).
    (d) Report.--The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1996, a report stating 
the intentions of the Secretary regarding the acquisition of options for 
the construction of two additional LMSR vessels as described in 
subsection (c).

SEC. 1014. NATIONAL DEFENSE RESERVE FLEET.

    (a) Availability of National Defense Sealift Fund.--Section 2218 of 
title 10, United States Code, is amended--
            (1) in subsection (c)(1)--
                    (A) by striking out ``only for--'' in the matter 
                preceding subparagraph (A) and inserting in lieu thereof 
                ``only for the following purposes:'';
                    (B) by capitalizing the first letter of the first 
                word of subparagraphs (A), (B), (C), and (D);
                    (C) by striking out the semicolon at the end of 
                subparagraphs (A) and (B) and inserting in lieu thereof 
                a period;
                    (D) by striking out ``; and'' at the end of 
                subparagraph (C) and inserting in lieu thereof a period; 
                and
                    (E) by adding at the end the following new 
                subparagraph:
            ``(E) Expenses for maintaining the National Defense Reserve 
        Fleet under section 11 of the Merchant Ship Sales Act of 1946 
        (50 U.S.C. App. 1744), and for the costs of acquisition of 
        vessels for, and alteration and conversion of vessels

[[Page 110 STAT. 424]]

        in (or to be placed in), the fleet, but only for vessels built 
        in United States shipyards.''; and
            (2) in subsection (i), by inserting ``(other than subsection 
        (c)(1)(E))'' after ``Nothing in this section''.

    (b) Clarification of Exemption of NDRF Vessels From Retrofit 
Requirement.--Section 11 of the Merchant Ship Sales Act of 1946 (50 
U.S.C. App. 1744) is amended by adding at the end the following new 
subsection:
    ``(e) Vessels in the National Defense Reserve Fleet are exempt from 
the provisions of section 3703a of title 46, United States Code.''.
    (c) Authority To Use National Defense Sealift Fund To Convert Two 
Vessels.--Of the amount authorized to be appropriated in section 302 for 
fiscal year 1996 for the National Defense Sealift Fund under section 
2218 of title 10, United States Code, not more than $20,000,000 shall be 
available for conversion work on the following two roll-on/roll-off 
vessels, which were acquired by the Maritime Administration during 
fiscal year 1995:
            (1) M/V Cape Knox (ON-1036323).
            (2) M/V Cape Kennedy (ON-1036324).

SEC. 1015. NAVAL SALVAGE FACILITIES.

    Chapter 637 of title 10, United States Code, is amended to read as 
follows:

                    ``CHAPTER 637--SALVAGE FACILITIES

``Sec.
``7361. Authority to provide for necessary salvage facilities.
``7362. Acquisition and transfer of vessels and equipment.
``7363. Settlement of claims.
``7364. Disposition of receipts.

``Sec. 7361. <<NOTE: Contracts.>> Authority to provide for necessary 
                        salvage facilities

    ``(a) Authority.--The Secretary of the Navy may provide, by contract 
or otherwise, necessary salvage facilities for public and private 
vessels.
    ``(b) Coordination With Secretary of Transportation.--The Secretary 
shall submit to the Secretary of Transportation for comment each 
proposed contract for salvage facilities that affects the interests of 
the Department of Transportation.

    ``(c) Limitation.--The Secretary of the Navy may enter into a term 
contract under subsection (a) only if the Secretary determines that 
available commercial salvage facilities are inadequate to meet the 
requirements of national defense.
    ``(d) Public Notice.--The Secretary may not enter into a contract 
under subsection (a) until the Secretary has provided public notice of 
the intent to enter into such a contract.

``Sec. 7362. Acquisition and transfer of vessels and equipment

    ``(a) Authority.--The Secretary of the Navy may acquire or transfer 
for operation by private salvage companies such vessels and equipment as 
the Secretary considers necessary.
    ``(b) Agreement on Use.--Before any salvage vessel or salvage gear 
is transferred by the Secretary to a private party, the private party 
must agree in writing with the Secretary that the vessel or gear will be 
used to support organized offshore salvage facilities for a period of as 
many years as the Secretary considers appropriate.

[[Page 110 STAT. 425]]

    ``(c) Reference to Authority To Advance Funds for Immediate Salvage 
Operations.--For authority for the Secretary of the Navy to advance to 
private salvage companies such funds as the Secretary considers 
necessary to provide for the immediate financing of salvage operations, 
see section 2307(g)(2) of this title.

``Sec. 7363. Settlement of claims

    ``The Secretary of the Navy may settle any claim by the United 
States for salvage services rendered by the Department of the Navy and 
may receive payment of any such claim.

``Sec. 7364. Disposition of receipts

    ``Amounts received under this chapter shall be credited to 
appropriations for maintaining naval salvage facilities. However, any 
amount received under this chapter in any fiscal year in excess of naval 
salvage costs incurred by the Navy during that fiscal year shall be 
deposited into the general fund of the Treasury.''.
SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE 
                          CONTRACTS.

    (a) In General.--The Secretary of the Navy shall ensure that any 
vessel that is covered by the contract referred to in subsection (b) 
remains covered by that contract, regardless of the operating command to 
which the vessel is subsequently assigned, unless the vessel is taken 
out of service for the Department of the Navy.
    (b) Covered Contract.--The contract referred to in subsection (a) is 
the contract entered into before the date of the enactment of this Act 
for the phased maintenance of AE class ships.
SEC. 1017. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS OF 
                          VESSELS.

    Section 7310(a) of title 10, United States Code, is amended by 
inserting ``or Guam'' after ``the United States'' the second place it 
appears.
SEC. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS 
                          SHIPS.

    It is the sense of Congress that the Secretary of the Navy--
            (1) should name the vessel to be designated LHD-7 as the 
        U.S.S. Iwo Jima; and
            (2) should name the vessel to be designated LPD-17, and each 
        subsequent ship of the LPD-17 class, after a Marine Corps battle 
        or a member of the Marine Corps.
SEC. 1019.  <<NOTE: Joseph Vittori.>> SENSE OF CONGRESS CONCERNING 
                          NAMING OF NAVAL
                          VESSEL.

    It is the sense of Congress that the Secretary of the Navy should 
name an appropriate ship of the United States Navy the U.S.S. Joseph 
Vittori, in honor of Marine Corporal Joseph Vittori (1929-1951) of 
Beverly, Massachusetts, who was posthumously awarded the Medal of Honor 
for actions against the enemy in Korea on September 15-16, 1951.

SEC. 1020. TRANSFER OF RIVERINE PATROL CRAFT.

    (a) Authority To Transfer Vessel.--Notwithstanding subsections (a) 
and (d) of section 7306 of title 10, United States Code, but subject to 
subsections (b) and (c) of that section, the Secretary of the Navy may 
transfer a vessel described in subsection (b)

[[Page 110 STAT. 426]]

to Tidewater Community College, Portsmouth, Virginia, for scientific and 
educational purposes.
    (b) Vessel.--The authority under subsection (a) applies in the case 
of a riverine patrol craft of the U.S.S. Swift class.
    (c) Limitation.--The transfer authorized by subsection (a) may be 
made only if the Secretary determines that the vessel to be transferred 
is of no further use to the United States for national security 
purposes.
    (d) Terms and Conditions.--The Secretary may require such terms and 
conditions in connection with the transfer authorized by this section as 
the Secretary considers appropriate.

                   Subtitle C--Counter-Drug Activities

SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL 
                          SUPPORT OF DRUG INTERDICTION AND 
                          COUNTER-DRUG ACTIVITIES OF THE NATIONAL 
                          GUARD.

    (a) Funding Assistance Authorized.--Subsection (a) of section 112 of 
title 32, United States Code, is amended to read as follows:
    ``(a) Funding Assistance.--The Secretary of Defense may provide 
funds to the Governor of a State who submits to the Secretary a State 
drug interdiction and counter-drug activities plan satisfying the 
requirements of subsection (c). Such funds shall be used for--
            ``(1) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses, as authorized by State 
        law, of personnel of the National Guard of that State used, 
        while not in Federal service, for the purpose of drug 
        interdiction and counter-drug activities;
            ``(2) the operation and maintenance of the equipment and 
        facilities of the National Guard of that State used for the 
        purpose of drug interdiction and counter-drug activities; and
            ``(3) the procurement of services and leasing of equipment 
        for the National Guard of that State used for the purpose of 
        drug interdiction and counter-drug activities.''.

    (b) Reorganization of Section.--Such section is further amended--
            (1) by redesignating subsection (f) as subsection (h);
            (2) by redesignating subsection (d) as subsection (g) and 
        transferring that subsection to appear before subsection (h), as 
        redesignated by paragraph (1); and
            (3) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively.

    (c) State Drug Interdiction and Counter-drug Activities Plan.--
Subsection (c) of such section, as redesignated by subsection (b)(3), is 
amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``A plan referred to in subsection (a)'' and inserting in lieu 
        thereof ``A State drug interdiction and counter-drug activities 
        plan'';
            (2) by striking out ``and'' at the end of paragraph (2); and
            (3) in paragraph (3)--
                    (A) by striking out ``annual training'' and 
                inserting in lieu thereof ``training'';

[[Page 110 STAT. 427]]

                    (B) by striking out the period at the end and 
                inserting in lieu thereof a semicolon; and
                    (C) <<NOTE: Certification.>> by adding at the end 
                the following new paragraphs:
            ``(4) include a certification by the Attorney General of the 
        State (or, in the case of a State with no position of Attorney 
        General, a civilian official of the State equivalent to a State 
        attorney general) that the use of the National Guard of the 
        State for the activities proposed under the plan is authorized 
        by, and is consistent with, State law; and
            ``(5) certify that the Governor of the State or a civilian 
        law enforcement official of the State designated by the Governor 
        has determined that any activities included in the plan that are 
        carried out in conjunction with Federal law enforcement agencies 
        serve a State law enforcement purpose.''.

    (d) Examination of State Plan.--Subsection (d) of such section, as 
redesignated by subsection (b)(3), is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``subsection (b)'' and inserting 
                in lieu thereof ``subsection (c)''; and
                    (B) by inserting after ``Before funds are provided 
                to the Governor of a State under this section'' the 
                following: ``and before members of the National Guard of 
                that State are ordered to full-time National Guard duty 
                as authorized in subsection (b)''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking out 
                ``subsection (b)'' and inserting in lieu thereof 
                ``subsection (c)''; and
                    (B) by striking out subparagraph (B) and inserting 
                in lieu thereof the following:
            ``(B) pursuant to the plan submitted for a previous fiscal 
        year, funds were provided to the State in accordance with 
        subsection (a) or personnel of the National Guard of the State 
        were ordered to perform full-time National Guard duty in 
        accordance with subsection (b).''.

    (e) Use of Personnel Performing Full-Time National Guard Duty.--Such 
section is further amended by inserting after subsection (a) the 
following new subsection (b):
    ``(b) <<NOTE: Regulations.>> Use of Personnel Performing Full-Time 
National Guard Duty.--Under regulations prescribed by the Secretary of 
Defense, personnel of the National Guard of a State may, in accordance 
with the State drug interdiction and counter-drug activities plan 
referred to in subsection (c), be ordered to perform full-time National 
Guard duty under section 502(f) of this title for the purpose of 
carrying out drug interdiction and counter-drug activities.''.

    (f) End Strength Limitation.--Such section is further
amended by inserting after subsection (e) the following new subsection 
(f):
    ``(f) End Strength Limitation.--(1) Except as provided in paragraph 
(2), at the end of a fiscal year there may not be more than 4000 members 
of the National Guard--
            ``(A) on full-time National Guard duty under section 502(f) 
        of this title to perform drug interdiction or counter-drug 
        activities pursuant to an order to duty for a period of more 
        than 180 days; or
            ``(B) on duty under State authority to perform drug 
        interdiction or counter-drug activities pursuant to an order to 
        duty for a period of more than 180 days with State pay and allow

[[Page 110 STAT. 428]]

        ances being reimbursed with funds provided under subsection 
        (a)(1).

    ``(2) The Secretary of Defense may increase the end strength 
authorized under paragraph (1) by not more than 20 percent for any 
fiscal year if the Secretary determines that such an increase is 
necessary in the national security interests of the United States.''.
    (g) Definitions.--Subsection (h) of such section, as redesignated by 
subsection (b)(1), is amended by striking out paragraph (1) and 
inserting in lieu thereof the following:
            ``(1) The term `drug interdiction and counter-drug 
        activities', with respect to the National Guard of a State, 
        means the use of National Guard personnel in drug interdiction 
        and counter-drug law enforcement activities authorized by the 
        law of the State and requested by the Governor of the State.''.

    (h) Technical Amendments.--Subsection (e) of such section is 
amended--
            (1) in paragraph (1), by striking out ``sections 517 and 
        524'' and inserting in lieu thereof ``sections 12011 and 
        12012''; and
            (2) in paragraph (2), by striking out ``the Committees on 
        Armed Services of the Senate and House of Representatives'' and 
        inserting in lieu thereof ``the Committee on Armed Services of 
        the Senate and the Committee on National Security of the House 
        of Representatives''.

                     Subtitle D--Civilian Personnel

SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

    Section 129 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking out ``man-year constraint or 
                limitation'' and inserting in lieu thereof ``constraint 
                or limitation in terms of man years, end strength, full-
                time equivalent positions, or maximum number of 
                employees''; and
                    (B) by adding at the end the following new sentence: 
                ``The Secretary of Defense and the Secretaries of the 
                military departments may not be required to make a 
                reduction in the number of full-time equivalent 
                positions in the Department of Defense unless such 
                reduction is necessary due to a reduction in funds 
                available to the Department or is required under a law 
                that is enacted after the date of the enactment of the 
                National Defense Authorization Act for Fiscal Year 1996 
                and that refers specifically to this subsection.'';
            (2) in subsection (b)(2), by striking out ``any end-
        strength'' and inserting in lieu thereof ``any constraint or
limitation in terms of man years, end strength, full-time equivalent 
positions, or maximum number of employees''; and
            (3) by adding at the end the following new subsection:

    ``(d) With respect to each budget activity within an appropriation 
for a fiscal year for operations and maintenance, the Secretary of 
Defense shall ensure that there are employed during that fiscal year 
employees in the number and with the combination of skills and 
qualifications that are necessary to carry out the functions

[[Page 110 STAT. 429]]

within that budget activity for which funds are provided for that fiscal 
year.''.
SEC. 1032.  <<NOTE: 10 USC 129a note.>> CONVERSION OF MILITARY 
                          POSITIONS TO CIVILIAN POSITIONS.

    (a) Conversion Requirement.--(1) <<NOTE: Effective date.>> By 
September 30, 1997, the Secretary of Defense shall convert at least 
10,000 military positions to civilian positions.

    (2) At least 3,000 of the military positions converted to satisfy 
the requirement of paragraph (1) shall be converted to civilian 
positions not later than September 30, 1996.
    (3) In this subsection:
            (A) The term ``military position'' means a position that, as 
        of the date of the enactment of this Act, is authorized to be 
        filled by a member of the Armed Forces on active duty.
            (B) The term ``civilian position'' means a position that is 
        required to be filled by a civilian employee of the Department 
        of Defense.

    (b) Implementation Plan.--Not later than March 31, 1996, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a plan for the implementation of subsection (a).
SEC. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CERTAIN 
                          EMPLOYEES.

    (a) Elimination of Limitation.--Subsection (b) of section 3341 of 
title 5, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:

    ``(2) The 120-day limitation in paragraph (1) for details and 
renewals of details does not apply to the Department of Defense in the 
case of a detail--
            ``(A) made in connection with the closure or realignment of 
        a military installation pursuant to a base closure law or an 
        organizational restructuring of the Department as part of a 
        reduction in the size of the armed forces or the civilian 
        workforce of the Department; and
            ``(B) in which the position to which the employee is 
        detailed is eliminated on or before the date of the closure, 
        realignment, or restructuring.

    ``(c) For purposes of this section--
            ``(1) the term `base closure law' means--
                    ``(A) section 2687 of title 10;
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (10 
                U.S.C. 2687 note); and
                    ``(C) the Defense Base Closure and Realignment Act 
                of 1990 (10 U.S.C. 2687 note); and
            ``(2) the term `military installation'--
                    ``(A) in the case of an installation covered by 
                section 2687 of title 10, has the meaning given such 
                term in subsection (e)(1) of such section;
                    ``(B) in the case of an installation covered by the 
                Act referred to in subparagraph (B) of paragraph (1), 
                has the meaning given such term in section 209(6) of 
                such Act; and

[[Page 110 STAT. 430]]

                    ``(C) in the case of an installation covered by the 
                Act referred to in subparagraph (C) of that paragraph, 
                has the meaning given such term in section 2910(4) of 
                such Act.''.

    (b) <<NOTE: 5 USC 3341 note.>> Applicability.--The amendments made 
by subsection (a) apply to details made before the date of the enactment 
of this Act but still in effect on that date and details made on or 
after that date.
SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT OF 
                          DEFENSE TO PARTICIPATE VOLUNTARILY IN 
                          REDUCTIONS IN FORCE.

    Section 3502 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(f)(1) The Secretary of Defense or the Secretary of a military 
department may--
            ``(A) release in a reduction in force an employee who 
        volunteers for the release even though the employee is not 
        otherwise subject to release in the reduction in force under the 
        criteria applicable under the other provisions of this section; 
        and
            ``(B) for each employee voluntarily released in the 
        reduction in force under subparagraph (A), retain an employee in 
        a similar position who would otherwise be released in the 
        reduction in force under such criteria.

    ``(2) A voluntary release of an employee in a reduction in force 
pursuant to paragraph (1) shall be treated as an involuntary release in 
the reduction in force.

    ``(3) An employee with critical knowledge and skills (as defined by 
the Secretary concerned) may not participate in a voluntary release 
under paragraph (1) if the Secretary concerned determines that such 
participation would impair the performance of the mission of the 
Department of Defense or the military department concerned.
    ``(4) <<NOTE: Regulations.>> The regulations prescribed under this 
section shall incorporate the authority provided in this subsection.

    ``(5) <<NOTE: Termination date.>> The authority under paragraph (1) 
may not be exercised after September 30, 1996.''.

SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

    Section 5595 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(i)(1) In the case of an employee of the Department of Defense who 
is entitled to severance pay under this section, the Secretary of 
Defense or the Secretary of the military department concerned may, upon 
application by the employee, pay the
total amount of the severance pay to the employee in one lump sum.

    ``(2)(A) If an employee paid severance pay in a lump sum under this 
subsection is reemployed by the Government of the United States or the 
government of the District of Columbia at such time that, had the 
employee been paid severance pay in regular pay periods under subsection 
(b), the payments of such pay would have been discontinued under 
subsection (d) upon such reemployment, the employee shall repay to the 
Department of Defense (for the military department that formerly 
employed the employee, if applicable) an amount equal to the amount of 
severance pay to which the employee was entitled under this section that 
would not have been paid to the employee under subsection (d) by reason 
of such reemployment.

[[Page 110 STAT. 431]]

    ``(B) The period of service represented by an amount of severance 
pay repaid by an employee under subparagraph (A) shall be considered 
service for which severance pay has not been received by the employee 
under this section.
    ``(C) Amounts repaid to an agency under this paragraph shall be 
credited to the appropriation available for the pay of employees of the 
agency for the fiscal year in which received. Amounts so credited shall 
be merged with, and shall be available for the
same purposes and the same period as, the other funds in that
appropriation.
    ``(3) If an employee fails to repay to an agency an amount required 
to be repaid under paragraph (2)(A), that amount is recoverable from the 
employee as a debt due the United States.
    ``(4) <<NOTE: Applicability.>> This subsection applies with respect 
to severance pay payable under this section for separations taking 
effect on or after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1996 and before October 1, 1999.''.

SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is amended--
            (1) in subparagraph (A), by inserting ``, or a voluntary 
        separation from a surplus position,'' after ``an involuntary 
        separation from a position''; and
            (2) by adding at the end the following new subparagraph:

    ``(C) For the purpose of this paragraph, `surplus position' means a 
position which is identified in pre-reduction-in-force planning as no 
longer required, and which is expected to be eliminated under formal 
reduction-in-force procedures.''.
SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOLUNTARILY 
                          SEPARATED MILITARY RESERVE TECHNICIANS.

    (a) Revision of Authority.--Section 3329 of title 5, United States 
Code, as added by section 544 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2415), is amended--
            (1) in subsection (b), by striking out ``be offered'' and 
        inserting in lieu thereof ``be provided placement consideration 
        in a position described in subsection (c) through a priority 
        placement program of the Department of Defense''; and
            (2) by striking out subsection (c) and inserting in lieu 
        thereof the following new subsection (c):

    ``(c)(1) The position for which placement consideration shall be 
provided to a former military technician under subsection (b) shall be a 
position--
            ``(A) in either the competitive service or the excepted 
        service;
            ``(B) within the Department of Defense; and
            ``(C) in which the person is qualified to serve, taking into 
        consideration whether the employee in that position is required 
        to be a member of a reserve component of the armed forces as a 
        condition of employment.

    ``(2) To the maximum extent practicable, the position shall also be 
in a pay grade or other pay classification sufficient to ensure that the 
rate of basic pay of the former military technician, upon appointment to 
the position, is not less than the rate of basic pay last received by 
the former military technician for technician service before 
separation.''.

[[Page 110 STAT. 432]]

    (b) Technical and Clerical Amendments.--(1) The section 3329 of 
title 5, United States Code, that was added by section 4431 of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484; 106 Stat. 2719) is redesignated as section 3330 of such title.
    (2) The table of sections at the beginning of chapter 33 of such 
title is amended by striking out the item relating to section 3329, as 
added by section 4431(b) of such Act (106 Stat. 2720), and inserting in 
lieu thereof the following new item:

``3330. Government-wide list of vacant positions.''.

SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

    (a) Requirement.--Section 709(b) of title 32, United States Code, is 
amended to read as follows:
    ``(b) Except as prescribed by the Secretary concerned, a technician 
employed under subsection (a) shall, while so employed--
            ``(1) be a member of the National Guard;
            ``(2) hold the military grade specified by the Secretary 
        concerned for that position; and
            ``(3) wear the uniform appropriate for the member's grade 
        and component of the armed forces while performing duties as a 
        technician.''.

    (b) Uniform Allowances for Officers.--Section 417 of title 37, 
United States Code, is amended by adding at the end the following:
    ``(d)(1) For purposes of sections 415 and 416 of this title, a 
period for which an officer of an armed force, while employed as a 
National Guard technician, is required to wear a uniform under section 
709(b) of title 32 shall be treated as a period of active duty (other 
than for training).
    ``(2) A uniform allowance may not be paid, and uniforms may not be 
furnished, to an officer under section 1593 of title 10 or section 5901 
of title 5 for a period of employment
referred to in paragraph (1) for which an officer is paid a uniform 
allowance under section 415 or 416 of this title.''.

    (c) Clothing or Allowances for Enlisted Members.--Section 418 of 
title 37, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The President''; and
            (2) by adding at the end the following:

    ``(b) <<NOTE: Regulations. President.>> In determining the quantity 
and kind of clothing or allowances to be furnished pursuant to 
regulations prescribed under this section to persons employed as 
National Guard technicians under section 709 of title 32, the President 
shall take into account the requirement under subsection (b) of such 
section for such persons to wear a uniform.

    ``(c) A uniform allowance may not be paid, and uniforms may not be 
furnished, under section 1593 of title 10 or section 5901 of title 5 to 
a person referred to in subsection (b) for a period of employment 
referred to in that subsection for which a uniform allowance is paid 
under section 415 or 416 of this title.''.
SEC. 1039. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR 
                          CERTAIN DUTY OVERSEAS.

    Section 6323 of title 5, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d)(1) A military reserve technician described in section 8401(30) 
is entitled at such person's request to leave without loss

[[Page 110 STAT. 433]]

of, or reduction in, pay, leave to which such person is otherwise 
entitled, credit for time or service, or performance or efficiency 
rating for each day, not to exceed 44 workdays in a calendar year, in 
which such person is on active duty without pay, as authorized pursuant 
to section 12315 of title 10, under section 12301(b) or 12301(d) of 
title 10 (other than active duty during a war or national emergency 
declared by the President or Congress) for participation in noncombat 
operations outside the United States, its territories and possessions.
    ``(2) An employee who requests annual leave or compensatory time to 
which the employee is otherwise entitled, for a period during which the 
employee would have been entitled upon request to leave under this 
subsection, may be granted such annual leave or compensatory time 
without regard to this section or section 5519.''.
SEC. 1040. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF 
                          NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Clarification of Definition of Nonappropriated Fund 
Instrumentality Employee.--Subsection (a)(1) of section 1587 of title 
10, United States Code, is amended by adding at the end the following 
new sentence: ``Such term includes a civilian employee of a support 
organization within the Department of Defense or a military department, 
such as the Defense Finance and Accounting Service, who is paid from 
nonappropriated funds on account of the nature of the employee's 
duties.''.
    (b) Direct Reporting of Violations.--Subsection (e) of such section 
is amended in the second sentence by inserting before the period the 
following: ``and to permit the reporting of alleged violations of 
subsection (b) directly to the Inspector General of the Department of 
Defense''.

    (c) Technical Amendment.--Subsection (a)(1) of such section is 
further amended by striking out ``Navy Resale and Services Support 
Office'' and inserting in lieu thereof ``Navy Exchange Service 
Command''.

    (d) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:
``Sec. 1587. Employees of nonappropriated fund instrumentalities: 
                    reprisals''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 81 of such title is amended to read as follows:

``1587. Employees of nonappropriated fund instrumentalities: 
           reprisals.''.

SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES UNDER 
                          AUTHORITY FOR FLEXIBLE AND COMPRESSED 
                          WORK SCHEDULES.

    Paragraph (2) of section 6121 of title 5, United States Code, is 
amended to read as follows:
            ``(2) `employee' has the meaning given the term in 
        subsection (a) of section 2105 of this title, except that such 
        term also includes an employee described in subsection (c) of 
        that section;''.

[[Page 110 STAT. 434]]

SEC. 1042.  <<NOTE: 10 USC 1587 note.>> LIMITATION ON PROVISION OF 
                          OVERSEAS LIVING QUARTERS ALLOWANCES FOR 
                          NONAPPROPRIATED FUND INSTRUMENTALITY 
                          EMPLOYEES.

    (a) Conforming Allowance to Allowances for Other Civilian 
Employees.--Subject to subsection (b), an overseas living quarters 
allowance paid from nonappropriated funds and provided to a 
nonappropriated fund instrumentality employee after the date of the 
enactment of this Act may not exceed the amount of a quarters allowance 
provided under subchapter III of chapter 59 of title 5 to a similarly 
situated civilian employee of the Department of Defense paid from 
appropriated funds.
    (b) Application to Certain Current Employees.--In the case of a 
nonappropriated fund instrumentality employee who, as of the date of the 
enactment of this Act, receives an overseas living quarters allowance 
under any other authority, subsection (a) shall apply to such employee 
only after the earlier of--
            (1) September 30, 1997; or
            (2) the date on which the employee otherwise ceases to be 
        eligible for such an allowance under such other authority.

    (c) Nonappropriated Fund Instrumentality Employee Defined.--For 
purposes of this section, the term ``nonappropriated fund 
instrumentality employee'' has the meaning given such term in section 
1587(a)(1) of title 10, United States Code.

SEC. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

    (a) In General.--
            (1) Civil service retirement system.--Section 8347(q) of 
        title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                          (i) by striking ``of the Department of Defense 
                      or the Coast Guard'' in the matter before 
                      subparagraph (A); and
                          (ii) by striking ``3 days'' and inserting ``1 
                      year''; and
                    (B) in paragraph (2)(C)--
                          (i) by striking ``3 days'' and inserting ``1 
                      year''; and
                          (ii) by striking ``in the Department of 
                      Defense or the Coast Guard, respectively,''.
            (2) Federal employees' retirement system.--Section 8461(n) 
        of title 5, United States Code, is amended--
                    (A) in paragraph (1)--
                          (i) by striking ``of the Department of Defense 
                      or the Coast Guard'' in the matter before 
                      subparagraph (A); and
                          (ii) by striking ``3 days'' and inserting ``1 
                      year''; and
                    (B) in paragraph (2)(C)--
                          (i) by striking ``3 days'' and inserting ``1 
                      year''; and
                          (ii) by striking ``in the Department of 
                      Defense or the Coast Guard, respectively,''.

    (b) <<NOTE: Notification. 5 USC 8347 note.>> Regulations.--Not later 
than 6 months after the date of the enactment of this Act, the Office of 
Personnel Management (and each of the other administrative authorities, 
within the meaning of subsection (c)(2)(C)(iii)) shall prescribe any 
regulations (or make any modifications in existing regulations) 
necessary to carry

[[Page 110 STAT. 435]]

out this section and the amendments made by this section, including 
regulations to provide for the notification of individuals who may be 
affected by the enactment of this section. <<NOTE: Effective date.>> All 
regulations (and modifications to regulations) under the preceding 
sentence shall take effect on the same date.

    (c) <<NOTE: 5 USC 8347 note.>> Applicability; Related Provisions.--
            (1) Prospective rules.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply with 
        respect to moves occurring on or after the effective date of the 
        regulations under subsection (b). Moves occurring on or after 
        the date of the enactment of this Act and before the effective 
        date of such regulations shall be subject to applicable 
        provisions of title 5, United States Code, disregarding the 
        amendments made by this section, except that any individual 
        making an election pursuant to this sentence shall be ineligible 
        to make an election otherwise allowable under paragraph (2).
            (2) Retroactive rules.--
                    (A) In general.--The regulations under subsection 
                (b) shall include provisions for the application of 
                sections 8347(q) and 8461(n) of title 5, United States 
                Code, as amended by this section, with respect to any 
                individual who, at any time after December 31, 1965, and 
                before the effective date of such regulations, moved 
                between positions in circumstances that would have 
                qualified such individual to make an election under the 
                provisions of such section 8347(q) or 8461(n), as so 
                amended, if such provisions had then been in effect.
                    (B) Deadline; related provisions.--An election 
                pursuant to this paragraph--
                          (i) shall be made within 1 year after the 
                      effective date of the regulations under subsection 
                      (b), and
                          (ii) shall have the same force and effect as 
                      if it had been timely made at the time of the 
                      move,
                except that no such election may be made by any
                individual--
                          (I) who has previously made, or had an 
                      opportunity to make, an election under section 
                      8347(q) or 8461(n) of title 5, United States Code 
                      (as in effect before being amended by this 
                      section); however, this subclause shall not be 
                      considered to render an individual ineligible, 
                      based on an opportunity arising out of a move 
                      occurring during the period described in the 
                      second sentence of paragraph (1), if no election 
                      has in fact been made by such individual based on 
                      such move;
                          (II) who has not, since the move on which 
                      eligibility for the election is based, remained 
                      continuously subject (disregarding any break in 
                      service of less than 3 days) to CSRS or FERS or 
                      both seriatim (if the move was from a NAFI 
                      position) or any retirement system (or 2 or more 
                      such systems seriatim) established for employees 
                      described in section 2105(c) of such title (if the 
                      move was to a NAFI position); or
                          (III) if such election would be based on a 
                      move to the Civil Service Retirement System from a 
                      retirement system established for employees 
                      described in section 2105(c) of such title.

[[Page 110 STAT. 436]]

                    (C) Transfers of contributions.--
                          (i) In general.--If an individual makes an 
                      election under this paragraph to be transferred 
                      back to a retirement system in which such 
                      individual previously participated (in this 
                      section referred to as the ``previous system''), 
                      all individual contributions (including interest) 
                      and Government contributions to the retirement 
                      system in which such individual is then currently 
                      participating (in this section referred to as the 
                      ``current system''), excluding those made to the 
                      Thrift Savings Plan or any other defined 
                      contribution plan, which are attributable to 
                      periods of service performed since the move on 
                      which the election is based, shall be paid
to the fund, account, or other repository for contributions made under 
the previous system. For purposes of this section, the term ``current 
system'' shall be considered also to include any retirement system 
(besides the one in which the individual is participating at the time of 
making the election) in which such individual previously participated 
since the move on which the election is based.
                          (ii) Condition subsequent relating to 
                      repayment of lump-sum credit.--In the case of an 
                      individual who has received such individual's 
                      lump-sum credit (within the meaning of section 
                      8401(19) of title 5, United States Code, or a 
                      similar payment) from such individual's previous 
                      system, the payment described in clause (i) shall 
                      not be made (and the election to which it relates 
                      shall be ineffective) unless such lump-sum credit 
                      is redeposited or otherwise paid at such time and 
                      in such manner as shall be required under 
                      applicable regulations. Regulations to carry out 
                      this clause shall include provisions for the 
                      computation of interest (consistent with section 
                      8334(e) (2) and (3) of title 5, United States 
                      Code), if no provisions for such computation 
                      otherwise exist.
                          (iii) Condition subsequent relating to 
                      deficiency in payments relative to amounts needed 
                      to ensure that benefits are fully funded.--
                                    (I) In general.--Except as provided 
                                in subclause (II), the payment described 
                                in clause (i) shall not be made (and the 
                                election to which it relates shall be 
                                ineffective) if the actuarial present 
                                value of the future benefits that would 
                                be payable under the previous system 
                                with respect to service performed by 
                                such individual after the move on which 
                                the election under this paragraph is 
                                based and before the effective date of 
                                the election, exceeds the total amounts 
                                required to be transferred to the 
                                previous system under the preceding 
                                provisions of this subparagraph with 
                                respect to such service, as determined 
                                by the authority administering such 
                                previous system (in this section 
                                referred to as the ``administrative 
                                authority'').
                                    (II) Payment of deficiency.--A 
                                determination of a deficiency under this 
                                clause shall not

[[Page 110 STAT. 437]]

                                render an election ineffective if the 
                                individual pays or arranges to pay, at a 
                                time and in a manner satisfactory to 
                                such administrative authority, the full 
                                amount of the deficiency described in 
                                subclause (I).
                    (D) Alternative election for an individual then 
                participating in fers.--
                          (i) Applicability.--This subparagraph applies 
                      with respect to any individual who--
                                    (I) is then currently participating 
                                in FERS; and
                                    (II) would then otherwise be 
                                eligible to make an election under 
                                subparagraphs (A) through (C) of this 
                                paragraph, determined disregarding the 
                                matter in subclause (I) of subparagraph 
                                (B) before the first semicolon therein.
                          (ii) Election.--An individual described in 
                      clause (i) may, instead of making an election for 
                      which such individual is otherwise eligible under 
                      this paragraph, elect to have all prior qualifying 
                      NAFI service of such individual treated as 
                      creditable service for purposes of any annuity 
                      under FERS payable out of the Civil Service 
                      Retirement and Disability Fund.
                          (iii) Qualifying nafi service.--For purposes 
                      of this subparagraph, the term ``qualifying NAFI 
                      service'' means any service which, but for this 
                      subparagraph, would be creditable for purposes of 
                      any retirement system established for employees 
                      described in section 2105(c) of title 5, United 
                      States Code.
                          (iv) Service ceases to be creditable for nafi 
                      retirement system purposes.--Any qualifying NAFI 
                      service that becomes creditable for FERS purposes 
                      by virtue of an election made under this 
                      subparagraph shall not be creditable for purposes 
                      of any retirement system referred to in clause 
                      (iii).
                          (v) Conditions.--An election under this 
                      subparagraph shall be subject to requirements, 
                      similar to those set forth in subparagraph (C), to 
                      ensure that--
                                    (I) appropriate transfers of 
                                individual and Government contributions 
                                are made to the Civil Service Retirement 
                                and Disability Fund; and
                                    (II) the actuarial present value of 
                                future benefits under FERS attributable 
                                to service made creditable by such 
                                election is fully funded.
                    (E) Alternative election for an individual then 
                participating in a nafi retirement system.--
                          (i) Applicability.--This subparagraph applies 
                      with respect to any individual who--
                                    (I) is then currently participating 
                                in any retirement system established for 
                                employees described in section 2105(c) 
                                of title 5, United States Code (in this 
                                subparagraph referred to as a ``NAFI 
                                retirement system''); and
                                    (II) would then otherwise be 
                                eligible to make an election under 
                                subparagraphs (A) through (C) of this 
                                paragraph (determined disregarding the 
                                matter in subclause (I) of subparagraph 
                                (B) before

[[Page 110 STAT. 438]]

                                the first semicolon therein) based on a 
                                move from FERS.
                          (ii) Election.--An individual described in 
                      clause (i) may, instead of making an election for 
                      which such individual is otherwise eligible under 
                      this paragraph, elect to have all prior qualifying 
                      FERS service of such individual treated as 
                      creditable service for purposes of determining 
                      eligibility for benefits under a NAFI retirement 
                      system, but not for purposes of computing the 
                      amount of any such benefits except as provided in 
                      clause (v)(II).
                          (iii) Qualifying fers service.--For purposes 
                      of this subparagraph, the term ``qualifying FERS 
                      service'' means any service which, but for this 
                      subparagraph, would be creditable for purposes of 
                      the Federal Employees' Retirement System.
                          (iv) Service ceases to be creditable for 
                      purposes of fers.--Any qualifying FERS service 
                      that becomes creditable for NAFI purposes by 
                      virtue of an election made under this subparagraph 
                      shall not be creditable for purposes of the 
                      Federal Employees' Retirement System.
                          (v) Funding requirements.--
                                    (I) In general.--Except as provided 
                                in subclause (II), nothing in this 
                                section or in any other provision of law 
                                or any other authority shall be 
                                considered to require any payment or 
                                transfer of monies in order for an 
                                election under this subparagraph to be 
                                effective.
                                    (II) Contribution required only if 
                                individual elects to have service made 
                                creditable for computation purposes as 
                                well.--Under regulations prescribed by 
                                the appropriate administrative 
                                authority, an individual making an 
                                election under this subparagraph may 
                                further elect to have the qualifying 
                                FERS service made creditable for 
                                computation
purposes under a NAFI retirement system, but only if the individual pays 
or arranges to pay, at a time and in a manner satisfactory to such 
administrative authority, the amount necessary to fully fund the 
actuarial present value of future benefits under the NAFI retirement 
system attributable to the qualifying FERS service.
            (3) Information.--The regulations under subsection (b) shall 
        include provisions under which any individual--
                    (A) shall, upon request, be provided information or 
                assistance in determining whether such individual is 
                eligible to make an election under paragraph (2) and, if 
                so, the exact amount of any payment which would be 
                required of such individual in connection with any such 
                election; and
                    (B) may seek any other information or assistance 
                relating to any such election.

    (d) Creditability of NAFI Service for RIF Purposes.--
            (1) In general.--Clause (ii) of section 3502(a)(C) of title 
        5, United States Code, is amended by striking ``January 1, 
        1987'' and inserting ``January 1, 1966''.

[[Page 110 STAT. 439]]

            (2) <<NOTE: 5 USC 3502 note.>> Effective date.--
        Notwithstanding any provision of subsection (c), the amendment 
        made by paragraph (1) shall--
                    (A) take effect on the date of the enactment of this 
                Act; and
                    (B) apply with respect to any reduction in force 
                carried out on or after such date.
SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN 
                          EMPLOYEES WITH RESPECT TO THE EVACUATION 
                          FROM GUANTANAMO, CUBA.

    (a) Extension of Authority.--The Secretary of Defense may, until the 
end of January 31, 1996, and without regard to the time limitations 
specified in subsection (a) of section 5523 of title 5, United States 
Code, make payments under the provisions of such section from funds 
available for the pay of civilian personnel in the case of employees, or 
an employee's dependents or immediate family, evacuated from Guantanamo 
Bay, Cuba, pursuant to the August 26, 1994 order of the 
Secretary. <<NOTE: Effective date. Applicability.>> This section shall 
take effect as of October 1, 1995, and shall apply with respect to 
payments made for periods occurring on or after that date.

    (b) Monthly Report.--On the first day of each month beginning after 
the date of the enactment of this Act and ending before March 1996, the 
Secretary of the Navy shall transmit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a report regarding the payment of employees pursuant to 
subsection (a). Each such report shall include, for the month preceding 
the month in which the report is transmitted, a statement of the 
following:
            (1) The number of the employees paid pursuant to such 
        section.
            (2) The positions of employment of the employees.
            (3) The number and location of the employees' dependents and 
        immediate families.
            (4) The actions taken by the Secretary to eliminate the 
        conditions which necessitated the payments.

            Subtitle E--Miscellaneous Reporting Requirements

SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION REGARDING 
                          GUARD AND RESERVE COMPONENTS.

    (a) Report.--The Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the President 
submits the budget for fiscal year 1997 under section 1105(a) of title 
31, United States Code, a report on amounts requested in that budget for 
the Guard and Reserve components.
    (b) Content.--The report shall include the following:
            (1) A description of the anticipated effect that the amounts 
        requested (if approved by Congress) will have to enhance the 
        capabilities of each of the Guard and Reserve components.
            (2) A listing, with respect to each such component, of each 
        of the following:
                    (A) The amount requested for each major weapon 
                system for which funds are requested in the budget for 
                that component.

[[Page 110 STAT. 440]]

                    (B) The amount requested for each item of equipment 
                (other than a major weapon system) for which funds are 
                requested in the budget for that component.
                    (C) The amount requested for each military 
                construction project, together with the location of each 
                such project, for which funds are requested in the 
                budget for that
                component.

    (c) Inclusion of Information in Next FYDP.--The Secretary of Defense 
shall specifically display in the next future-years defense program (or 
program revision) submitted to Congress after the date of the enactment 
of this Act the amounts programmed for procurement of equipment and for 
military construction for each of the Guard and Reserve components.
    (d) Definition.--For purposes of this section, the term ``Guard and 
Reserve components'' means the following:
            (1) The Army Reserve.
            (2) The Army National Guard of the United States.
            (3) The Naval Reserve.
            (4) The Marine Corps Reserve.
            (5) The Air Force Reserve.
            (6) The Air National Guard of the United States.
SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVIDING 
                          AUTHORITY FOR USE OF FUNDS DERIVED FROM 
                          RECOVERED LOSSES RESULTING FROM 
                          CONTRACTOR FRAUD.

    (a) Report.--Not later than April 1, 1996, the Secretary of Defense 
shall submit to Congress a report on the desirability
and feasibility of authorizing by law the retention and use by the 
Department of Defense of a specified portion (not to exceed three 
percent) of amounts recovered by the Government during any fiscal year 
from losses and expenses incurred by the Department of Defense as a 
result of contractor fraud at military installations.

    (b) Matters To Be Included.--The report shall include the views of 
the Secretary of Defense regarding--
            (1) the degree to which such authority would create enhanced 
        incentives for the discovery, investigation, and resolution of 
        contractor fraud at military installations; and
            (2) the appropriate allocation for funds that would be 
        available for expenditure pursuant to such authority.
SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE NATIONAL 
                          INFORMATION INFRASTRUCTURE AGAINST 
                          STRATEGIC ATTACKS.

     <<NOTE: President.>> Not later than 120 days after the date of the 
enactment of this Act, the President shall submit to Congress a report 
setting forth the results of a review of the national policy on 
protecting the national information infrastructure against strategic 
attacks. The report shall include the following:
            (1) A description of the national policy and architecture 
        governing the plans for establishing procedures, capabilities, 
        systems, and processes necessary to perform indications, 
        warning, and assessment functions regarding strategic attacks by 
        foreign nations, groups, or individuals, or any other entity 
        against the national information infrastructure.
            (2) An assessment of the future of the National 
        Communications System (NCS), which has performed the central 
        role in ensuring national security and emergency preparedness

[[Page 110 STAT. 441]]

        communications for essential United States Government and 
        private sector users, including a discussion of--
                    (A) whether there is a Federal interest in expanding 
                or modernizing the National Communications System in 
                light of the changing strategic national security 
                environment and the revolution in information 
                technologies; and
                    (B) the best use of the National Communications 
                System and the assets and experience it represents as an 
                integral part of a larger national strategy to protect 
                the United States against a strategic attack on the 
                national information infrastructure.
SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND COMMISSIONS.

    (a) Study.--The Secretary of Defense shall conduct a study of the 
boards and commissions described in subsection (c). As part of such 
study, the Secretary shall determine, with respect to each such board or 
commission that received support from the Department of Defense during 
fiscal year 1995, whether that board or commission merits continued 
support from the Department.
    (b) Report.--Not later than April 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the results of the study. The report shall include the following:
            (1) A list of each board and commission described in 
        subsection (c) that received support from the Department of 
        Defense during fiscal year 1995.
            (2) With respect to the boards and commissions specified on 
        the list under paragraph (1)--
                    (A) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department of Defense is merited; and
                    (B) a list of each such board or commission 
                concerning which the Secretary determined under 
                subsection (a) that continued support from the 
                Department if not merited.
            (3) For each board and commission specified on the list 
        under paragraph (2)(A), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support provided by 
                the Department to the board or commission during fiscal 
                year 1995;
                    (C) the nature and duration of the support that the 
                Secretary proposes to provide to the board or 
                commission;
                    (D) the anticipated cost to the Department of 
                providing such support; and
                    (E) a justification of the determination that the 
                board or commission merits the continued support of the
                Department.
            (4) For each board and commission specified on the list 
        under paragraph (2)(B), a description of--
                    (A) the purpose of the board or commission;
                    (B) the nature and cost of the support provided by 
                the Department to the board or commission during fiscal 
                year 1995; and

[[Page 110 STAT. 442]]

                    (C) a justification of the determination that the 
                board or commission does not merit the continued support 
                of the Department.

    (c) Covered Boards and Commissions.--Subsection (a) applies to any 
board or commission (including any board or commission authorized by 
law) that operates within or for the Department of Defense and that--
            (1) provides only policy-making assistance or advisory 
        services for the Department; or
            (2) carries out only activities that are not routine 
        activities, on-going activities, or activities necessary to the 
        routine, on-going operations of the Department.

    (d) Support Defined.--For purposes of this section, the term 
``support'' includes the provision of any of the following:
            (1) Funds.
            (2) Equipment, materiel, or other assets.
            (3) Services of personnel.
SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL ACCESS 
                          PROGRAMS.

    Section 119(a) of title 10, United States Code, is amended by 
striking out ``February 1'' and inserting in lieu thereof
``March 1''.

   Subtitle F--Repeal of Certain Reporting and Other Requirements and 
                               Authorities

SEC. 1061. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

    (a) Volunteers Investing in Peace and Security Program.--(1) Chapter 
89 of title 10, United States Code, <<NOTE: 10 USC 1801 et seq.>> is 
repealed.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of such title are each amended 
by striking out the item relating to chapter 89.
    (b) Security and Control of Supplies.--(1) Chapter 171 of such 
title <<NOTE: 10 USC 2891 et seq.>> is repealed.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are each amended 
by striking out the item relating to chapter 171.
    (c) Annual Authorization of Military Training Student Loads.--
Section 115 of such title is amended--
            (1) in subsection (a), by striking out paragraph (3);
            (2) in subsection (b)--
                    (A) by inserting ``or'' at the end of paragraph (1);
                    (B) by striking out ``; or'' at the end of paragraph 
                (2) and inserting in lieu thereof a period; and
                    (C) by striking out paragraph (3); and
            (3) by striking out subsection (f).

    (d) Portions of Annual Manpower Requirements Report.--Section 115a 
of such title is amended--
            (1) in subsection (b)(2), by striking out subparagraph (C);
            (2) by striking out subsection (d);
            (3) by redesignating subsection (e) as subsection (d) and 
        striking out paragraphs (4) and (5) thereof;
            (4) by striking out subsection (f); and
            (5) by redesignating subsection (g) as subsection (e).

[[Page 110 STAT. 443]]

    (e) Obsolete Authority for Payment of Stipends for Members of 
Certain Advisory Committees and Boards of Visitors of Service 
Academies.--(1) The second sentence of each of sections 173(b) and 
174(b) of such title is amended to read as follows: ``Other members and 
part-time advisers shall (except as otherwise specifically authorized by 
law) serve without compensation for such service.''.
    (2) Sections 4355(h), 6968(h), and 9355(h) of such title are amended 
by striking out ``is entitled to not more than $5 a day and''.
    (f) Annual Budget Information Concerning Recruiting Costs.--(1) 
Section 227 of such title is repealed.
    (2) The table of sections at the beginning of chapter 9 of such 
title is amended by striking out the item relating to section 227.
    (g) Expired Authority Relating to Peacekeeping Activities.--(1) 
Section 403 of such title is repealed.
    (2) The table of sections at the beginning of subchapter I of 
chapter 20 of such title is amended by striking out the item relating to 
section 403.
    (h) Procurement of Gasohol for Department of Defense Motor 
Vehicles.--(1) Subsection (a) of section 2398 of such title is repealed.
    (2) Such section is further amended--
            (A) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively; and
            (B) in subsection (b), as so redesignated, by striking out 
        ``subsection (b)'' and inserting in lieu thereof ``subsection 
        (a)''.

    (i) Requirement of Notice of Certain Disposals and Gifts by 
Secretary of Navy.--Section 7545 of such title is amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d) as subsection (c).

    (j) Annual Report on Biological Defense Research Program.--(1) 
Section 2370 of such title is repealed.
    (2) The table of sections at the beginning of chapter 139 of such 
title is amended by striking out the item relating to such section.
    (k) Reports and Notifications Relating to Chemical and Biological 
Agents.--Subsection (a) of section 409 of Public Law 91-121 (50 U.S.C. 
1511) is repealed.
    (l) Annual Report on Balanced Technology Initiative.--Subsection (e) 
of section 211 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1394) <<NOTE: 10 USC 
113 note.>> is repealed.

    (m) Report on Environmental Restoration Costs for Installations To 
Be Closed Under 1990 Base Closure Law.--Section 2827 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190; 10 U.S.C. 2687 note) is amended by striking out subsection (b).
    (n) Limitation on American Diplomatic Facilities in Germany.--
Section 1432 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160; 107 Stat. 1833) is repealed.

SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

    (a) Annual Report on Relocation Assistance Programs.--Section 1056 
of title 10, United States Code, is amended--

[[Page 110 STAT. 444]]

            (1) by striking out subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).

    (b) Notice of Salary Increases for Foreign National Employees.--
Section 1584 of such title is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a) Waiver of 
        Employment Restrictions for Certain Personnel.--''.

    (c) Notice Regarding Contracts Performed for Periods Exceeding 10 
Years.--(1) Section 2352 of such title is repealed.
    (2) The table of sections at the beginning of chapter 139 of such 
title is amended by striking out the item relating to section 2352.
    (d) Report on Low-Rate Production Under Naval Vessel and Military 
Satellite Programs.--Section 2400(c) of such title is amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1)--
                    (A) by striking out ``(1)''; and
                    (B) by redesignating clauses (A) and (B) as clauses 
                (1) and (2), respectively.

    (e) Report on Waivers of Prohibition on Employment of Felons.--
Section 2408(a)(3) of such title is amended by striking out the second 
sentence.
    (f) Report on Determination Not To Debar for Fraudulent Use of 
Labels.--Section 2410f(a) of such title is amended by striking out the 
second sentence.
    (g) Notice of Military Construction Contracts on Guam.--Section 
2864(b) of such title is amended by striking out ``after the 21-day 
period'' and all that follows through ``determination''.
SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND 
                          APPROPRIATIONS ACTS.

    (a) Public Law 99-661 Requirement for Report on Funding for 
Nicaraguan Democratic Resistance.--Section 1351 of the National Defense 
Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100 Stat. 
3995; 10 U.S.C. 114 note) is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a), by striking out ``(a)
        Limitation.--''.

    (b) Annual Report on Overseas Military Facility Investment Recovery 
Account.--Section 2921 of the Military Construction Authorization Act 
for Fiscal Year 1991 (division B of Public Law 101-510; 10 U.S.C. 2687 
note) is amended--
            (1) by striking out subsection (f); and
            (2) by redesignating subsections (g) and (h) as subsections 
        (f) and (g), respectively.

    (c) Science, Mathematics, and Engineering Education Master Plan.--
Section 829 of the National Defense Authorization Act for Fiscal Years 
1992 and 1993 (Public Law 102-190; 105 Stat. 1444; 10 U.S.C. 2192 note) 
is repealed.
    (d) Report Regarding Heating Facility Modernization at 
Kaiserslautern.--Section 8008 of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139; 107 Stat. 1438), is 
amended by inserting ``but without regard to the notification 
requirement in subsection (b)(2) of such section,'' after ``section 2690 
of title 10, United States Code,''.

[[Page 110 STAT. 445]]

SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

    (a) Requirement Under Arms Export Control Act for Quarterly Report 
on Price and Availability Estimates.--Section 28 of the Arms Export 
Control Act (22 U.S.C. 2768) is repealed.
    (b) Annual Report on National Security Agency Executive Personnel.--
Section 12(a) of the National Security Agency Act of 1959 (50 U.S.C. 402 
note) is amended by striking out
paragraph (5).
    (c) Reports Concerning Certain Federal Contracting and Financial 
Transactions.--Section 1352 of title 31, United States Code, is 
amended--
            (1) in subsection (b)(6)(A), by inserting ``(other than the 
        Secretary of Defense and Secretary of a military department)'' 
        after ``The head of each agency''; and
            (2) in subsection (d)(1), by inserting ``(other than in the 
        case of the Department of Defense or a military department)'' 
        after ``paragraph (3) of this subsection''.

    (d) Annual Report on Water Resources Project Agreements.--Section 
221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b) is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).

    (e) Annual Report on Construction of Tennessee-Tombigbee Waterway.--
Section 185 of the Water Resources Development Act of 1976 (33 U.S.C. 
544c) is amended by striking out the second sentence.
    (f) Annual Report on Monitoring of Navy Home Port Waters.--Section 7 
of the Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2406) 
is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.

          Subtitle G--Department of Defense Education Programs

SEC. 1071.  <<NOTE: 10 USC 2112 note.>> CONTINUATION OF UNIFORMED 
                          SERVICES UNIVERSITY OF THE HEALTH 
                          SCIENCES.

    (a) Policy.--Congress reaffirms--
            (1) the prohibition set forth in subsection (a) of section 
        922 of the National Defense Authorization Act for Fiscal Year 
        1995 (Public Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note) 
        regarding closure of the Uniformed Services University of the 
        Health Sciences; and
            (2) the expression of the sense of Congress set forth in 
        subsection (b) of such section regarding the budgetary 
        commitment to continuation of the University.

    (b) Personnel Strength.--During the five-year period beginning on 
October 1, 1995, the personnel staffing levels for the Uniformed 
Services University of the Health Sciences may not be reduced below the 
personnel staffing levels for the University as of October 1, 1993.
    (c) Budgetary Commitment to Continuation.--It is the sense of 
Congress that the Secretary of Defense should budget for the operation 
of the Uniformed Services University of the Health

[[Page 110 STAT. 446]]

Sciences during fiscal year 1997 at a level at least equal to the level 
of operations conducted at the University during fiscal year 1995.
SEC. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNIFORMED 
                          SERVICES UNIVERSITY OF THE HEALTH 
                          SCIENCES.

    (a) Additional Schools and Programs.--Subsection (h) of section 2113 
of title 10, United States Code, is amended to read as follows:
    ``(h) The Secretary of Defense may establish the following 
educational programs at the University:
            ``(1) Postdoctoral, postgraduate, and technological 
        institutes.
            ``(2) A graduate school of nursing.
            ``(3) Other schools or programs that the Secretary 
        determines necessary in order to operate the University in a 
        cost-effective manner.''.

    (b) Conforming Amendments To Reflect Advisory Nature of Board of 
Regents.--(1) Section 2112(b) of such title is amended by striking out 
``, upon recommendation of the Board of Regents,''.
    (2) Section 2113 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking out ``a Board of Regents 
                (hereinafter in this chapter referred to as the 
                `Board')'' in the first sentence and inserting in lieu 
                thereof ``the Secretary of Defense''; and
                    (ii) by inserting after the first sentence the 
                following new sentence: ``To assist the Secretary in an 
                advisory capacity, there is a Board of Regents for the 
                University.'';
            (B) in subsection (d), by striking out ``Board'' the first 
        place it appears and inserting in lieu thereof ``Secretary'';
            (C) in subsection (e), by striking out ``of Defense'';
            (D) in subsection (f)(1), by striking out ``of Defense'';
            (E) in subsection (g)--
                    (i) by striking out ``Board is authorized to'' in 
                the first sentence and inserting in lieu thereof 
                ``Secretary may'';
                    (ii) by striking out ``Board is also authorized to'' 
                in the third sentence and inserting in lieu thereof 
                ``Secretary may''; and
                    (iii) by striking out ``Board may also, subject to 
                the approval of the Secretary of Defense,'' in the fifth 
                sentence and inserting in lieu thereof ``Secretary 
                may''; and
            (F) by striking out ``Board'' each place it appears in 
        subsections (f), (i), and (j) and inserting in lieu thereof 
        ``Secretary''.

    (3) Section 2114(e)(1) of such title is amended by striking out 
``Board, upon approval of the Secretary of Defense,'' and inserting in 
lieu thereof ``Secretary of Defense''.
    (c) Clerical Amendments.--(1) The heading of section 2113 of such 
title is amended to read as follows:

``Sec. 2113. Administration of University''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 104 of such title is amended to read as 
follows:

``2113. Administration of University.''.

[[Page 110 STAT. 447]]

SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY 
                          PERSONNEL AND DEPENDENTS OUTSIDE THE 
                          UNITED STATES.

    Of amounts appropriated pursuant to section 301, $600,000 shall be 
available to carry out adult education programs, consistent with the 
Adult Education Act (20 U.S.C. 1201 et seq.), for the following:
            (1) Members of the Armed Forces who are serving in
        locations--
                    (A) that are outside the United States; and
                    (B) for which amounts are not required to be 
                allotted under section 313(b) of such Act (20 U.S.C. 
                1201b(b)).
            (2) The dependents of such members.
SEC. 1074. 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 
1996.--(1) Of the amounts authorized to be appropriated in section 
301(5)--
            (A) $30,000,000 shall be available for providing educational 
        agencies assistance (as defined in paragraph (4)(A)) to local 
        educational agencies; and
            (B) $5,000,000 shall be available for making educational 
        agencies payments (as defined in paragraph (4)(B)) to local 
        educational agencies.

    (2) <<NOTE: Notification.>> Not later than June 30, 1996, the 
Secretary of Defense shall--
            (A) notify each local educational agency that is eligible 
        for educational agencies assistance for fiscal year 1996 of that 
        agency's eligibility for such assistance and the amount of such 
        assistance for which that agency is eligible; and
            (B) notify each local educational agency that is eligible 
        for an educational agencies payment for fiscal year 1996 of that 
        agency's eligibility for such payment and the amount of the 
        payment for which that agency is eligible.

    (3) The Secretary of Defense shall disburse funds made available 
under subparagraphs (A) and (B) of paragraph (1) not later than 30 days 
after the date on which notification to the eligible local educational 
agencies is provided pursuant to paragraph (2).
    (4) In this section:
            (A) The term ``educational agencies assistance'' means 
        assistance authorized under subsection (b) of section 386 of the 
        National Defense Authorization Act for Fiscal Year 1993 (Public 
        Law 102-484; 20 U.S.C. 238 note).
            (B) The term ``educational agencies payments'' means 
        payments authorized under subsection (d) of that section, as 
        amended by subsection (d).

    (b) Special Rule for 1994 Payments.--The Secretary of Education 
shall not consider any payment to a local educational agency by the 
Department of Defense, that is available to such agency for current 
expenditures and used for capital expenses, as funds available to such 
agency for purposes of making a determination for fiscal year 1994 under 
section 3(d)(2)(B)(i) of the Act of September 30, 1950 (Public Law 874, 
81st Congress) (as such Act was in effect on September 30, 1994).

[[Page 110 STAT. 448]]

    (c) <<NOTE: 20 USC 7703 note.>> Reduction in Impact Threshold.--
Subsection (c)(1) of section 386 of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 238 note) is 
amended--
            (1) by striking out ``30 percent'' and inserting in lieu 
        thereof ``20 percent''; and
            (2) by striking out ``counted under subsection (a) or (b) of 
        section 3 of the Act of September 30, 1950 (Public Law 874, 
        Eighty-first Congress; 20 U.S.C. 238)'' and inserting in lieu 
        thereof ``counted under section 8003(a) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(a))''.

    (d) <<NOTE: 20 USC 7703 note.>> Adjustments Related to Base Closures 
and Realignments.--Subsection (d) of section 386 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 28 U.S.C. 
238 note) is amended to read as follows:

    ``(d) Adjustments Related to Base Closures and Realignments.--To 
assist communities in making adjustments resulting from reductions in 
the size of the Armed Forces, the Secretary of Defense shall, in 
consultation with the Secretary of Education, make payments to local 
educational agencies that, during the period between the end of the 
school year preceding the fiscal year for which the payments are 
authorized and the beginning of the school year immediately preceding 
that school year, had an overall reduction of not less than 20 percent 
in the number of military dependent students as a result of the closure 
or realignment of military installations.''.
    (e) <<NOTE: 20 USC 7703 note.>> Extension of Reporting 
Requirement.--Subsection (e)(1) of section 386 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 
238 note) is amended by striking out ``and 1995'' and inserting in lieu 
thereof ``1995, and 1996''.

    (f) Payments for Eligible Federally Connected Children.--Subsection 
(f) of section 8003 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703) is amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding clause (i) of 
                subparagraph (A), by striking ``only if such agency'' 
                and inserting ``if such agency is eligible for a 
                supplementary payment in accordance with subparagraph 
                (B) or such agency''; and
                    (B) by adding at the end the following new
                subparagraph:
                    ``(D) A local educational agency shall only be 
                eligible to receive additional assistance under this 
                subsection if the Secretary determines that--
                          ``(i) such agency is exercising due diligence 
                      in availing itself of State and other financial 
                      assistance; and
                          ``(ii) the eligibility of such agency under 
                      State law for State aid with respect to the free 
                      public education of children described in 
                      subsection (a)(1) and the amount of such aid are 
                      determined on a basis no less favorable to such 
                      agency than the basis used in determining the 
                      eligibility of local educational agencies for 
                      State aid, and the amount of such aid, with 
                      respect to the free public education of other 
                      children in the State.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--

[[Page 110 STAT. 449]]

                          (i) in the matter preceding clause (i), by 
                      inserting ``(other than any amount received under 
                      paragraph (2)(B))'' after ``subsection'';
                          (ii) in subclause (I) of clause (i), by 
                      striking ``or the average per-pupil expenditure of 
                      all the States'';
                          (iii) by amending clause (ii) to read as 
                      follows:
                          ``(ii) The Secretary shall next multiply the 
                      amount determined under clause (i) by the total 
                      number of students in average daily attendance at 
                      the schools of the local educational agency.''; 
                      and
                          (iv) by amending clause (iii) to read as 
                      follows:
                          ``(iii) The Secretary shall next subtract from 
                      the amount determined under clause (ii) all funds 
                      available to the local educational agency for 
                      current expenditures, but shall not so subtract 
                      funds provided--
                                    ``(I) under this Act; or
                                    ``(II) by any department or agency 
                                of the Federal Government (other than 
                                the Department) that are used for 
                                capital expenses.''; and
                    (B) by amending subparagraph (B) to read as follows:
                    ``(B) Special rule.--With respect to payments under 
                this subsection for a fiscal year for a local 
                educational agency described in clause (ii) or (iii) of 
                paragraph (2)(A), the maximum amount of payments under 
                this subsection shall be equal to--
                          ``(i) the product of--
                                    ``(I) the average per-pupil 
                                expenditure in all States multiplied by 
                                0.7, except that such amount may not 
                                exceed 125 percent of the average per-
                                pupil expenditure in all local 
                                educational agencies in the State; 
                                multiplied by
                                    ``(II) the number of students 
                                described in subparagraph (A) or (B) of 
                                subsection (a)(1) for such agency; minus
                          ``(ii) the amount of payments such agency 
                      receives under subsections (b) and (d) for such 
                      year.''.

    (g) Current Year Data.--Paragraph (4) of section 8003(f) of such Act 
(20 U.S.C. 7703(f)) is amended to read as follows:
            ``(4) Current year data.--For purposes of providing 
        assistance under this subsection the Secretary--
                    ``(A) shall use student and revenue data from the 
                fiscal year for which the local educational agency is 
                applying for assistance under this subsection; and
                    ``(B) shall derive the per pupil expenditure amount 
                for such year for the local educational agency's 
                comparable school districts by increasing or decreasing 
                the per pupil expenditure data for the second fiscal 
                year preceding the fiscal year for which the 
                determination is made by the same percentage increase or 
                decrease reflected between the per pupil expenditure 
                data for the fourth fiscal year preceding the fiscal 
                year for which the determination is made and the per 
                pupil expenditure data for such second year.''.

    (h) <<NOTE: 20 USC 7703 note.>> Technical Amendments To Correct 
References to Repealed Law.--Section 386 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 
238 note) is amended--

[[Page 110 STAT. 450]]

            (1) in subsection (e)(2)--
                    (A) in subparagraph (C), by inserting after ``et 
                seq.),'' the following: ``title VIII of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 7701 et 
                seq.),''; and
                    (B) in subparagraph (D)(iii), by striking out 
                ``under subsections (a) and (b) of section 3 of such Act 
                (20 U.S.C. 238)''; and
            (2) in subsection (h)--
                    (A) in paragraph (1), by striking out ``section 
                14101 of the Elementary and Secondary Education Act of 
                1965'' and inserting in lieu thereof ``section 8013(9) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7713(9))''; and
                    (B) by striking out paragraph (3) and inserting in 
                lieu thereof the following new paragraph:
            ``(3) The term `State' means each of the 50 States and the 
        District of Columbia.''.
SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE DOMESTIC 
                          DEPENDENT SCHOOLS AND DEFENSE 
                          DEPENDENTS' EDUCATION SYSTEM.

    Section 2164(e) of title 10, United States Code, is amended by 
adding at the end the following:
    ``(4)(A) The Secretary may, without regard to the provisions of any 
law relating to the number, classification, or compensation of 
employees--
            ``(i) transfer employees from schools established under this 
        section to schools in the defense dependents' education system 
        in order to provide the services referred to in subparagraph (B) 
        to such system; and
            ``(ii) transfer employees from such system to schools 
        established under this section in order to provide such services 
        to those schools.

    ``(B) The services referred to in subparagraph (A) are the
following:
            ``(i) Administrative services.
            ``(ii) Logistical services.
            ``(iii) Personnel services.
            ``(iv) Such other services as the Secretary considers
        appropriate.

    ``(C) Transfers under this paragraph shall extend for such periods 
as the Secretary considers appropriate. The Secretary shall provide 
appropriate compensation for employees so transferred.
    ``(D) The Secretary may provide that the transfer of an employee 
under this paragraph occur without reimbursement of the school or system 
concerned.
    ``(E) In this paragraph, the term `defense dependents' education 
system' means the program established and operated under section 1402(a) 
of the Defense Dependents' Education Act of 1978 (20 U.S.C. 921(a)).''.
SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI BILL 
                          EDUCATIONAL ASSISTANCE ALLOWANCE WITH 
                          RESPECT TO SKILLS OR SPECIALTIES FOR 
                          WHICH THERE IS A CRITICAL SHORTAGE OF 
                          PERSONNEL.

    Section 16131 of title 10, United States Code, is amended by adding 
at the end the following new subsection:

[[Page 110 STAT. 451]]

    ``(j)(1) In the case of a person who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty in which 
there is a critical shortage of personnel or for which it is difficult 
to recruit or, in the case of critical units, retain personnel, the 
Secretary concerned may increase the rate of the educational assistance 
allowance applicable to that person to such rate in excess of the rate 
prescribed under subparagraphs (A) through (D) of subsection (b)(1) as 
the Secretary of Defense considers appropriate, but the amount of any 
such increase may not exceed $350 per month.
    ``(2) In the case of a person who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty in which 
there is a critical shortage of personnel or for which it is difficult 
to recruit or, in the case of critical units, retain personnel, who is 
eligible for educational benefits under chapter 30 (other than section 
3012) of title 38 and who meets the eligibility criteria specified in 
subparagraphs (A) and (B) of section 16132(a)(1) of this title, the 
Secretary concerned may increase the rate of the educational assistance 
allowance applicable to that person to such rate in excess of the rate 
prescribed under section 3015 of title 38 as the Secretary of Defense 
considers appropriate, but the amount of any such increase may not 
exceed $350 per month.
    ``(3) <<NOTE: Regulations.>> The authority provided by paragraphs 
(1) and (2) shall be exercised by the Secretaries concerned under 
regulations prescribed by the Secretary of Defense.''.
SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT MONTGOMERY 
                          GI BILL EDUCATIONAL ASSISTANCE
                          PROGRAM.

    Section 16137 of title 10, United States Code, is amended by 
striking out ``December 15 of each year'' and inserting in lieu thereof 
``March 1 of each year''.
SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE OF THE 
                          AIR FORCE.

    (a) Limitation to Members of the Air Force.--Section 9315(a)(1) of 
title 10, United States Code, is amended by striking out ``for enlisted 
members of the armed forces'' and inserting in lieu thereof ``for 
enlisted members of the Air Force''.
    (b) <<NOTE: 10 USC 9315 note.>> Effective Date.--The amendment made 
by subsection (a) shall apply with respect to enrollments in the 
Community College of the Air Force after March 31, 1996.
SEC. 1079. AMENDMENTS TO EDUCATION LOAN REPAYMENT
                          PROGRAMS.

    (a) General Education Loan Repayment Program.--Section 2171(a)(1) of 
title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
            ``(B) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.

    (b) Education Loan Repayment Program for Enlisted Members of 
Selected Reserve With Critical Specialties.--Section 16301(a)(1) of such 
title is amended--

[[Page 110 STAT. 452]]

            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
            ``(B) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.

    (c) Education Loan Repayment Program for Health Professions Officers 
Serving in Selected Reserve With Wartime Critical Medical Skill 
Shortages.--Section 16302(a) of such title is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5) respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.

                        Subtitle H--Other Matters

SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, 
                          DEFENSE REINVESTMENT, AND DEFENSE 
                          CONVERSION PROGRAMS.

    (a) National Security Objectives for National Technology and 
Industrial Base.--(1) Section 2501 of title 10, United States Code, is 
amended--
            (A) in subsection (a)--
                    (i) by striking out ``Defense Policy'' in the 
                subsection heading and inserting in lieu thereof 
                ``National Security''; and
                    (ii) by striking out paragraph (5);
            (B) by striking out subsection (b); and
            (C) by redesignating subsection (c) as subsection (b).

    (2) The heading of such section is amended to read as follows:
``Sec. 2501. National security objectives concerning national 
                    technology and industrial base''.

    (b) National Defense Technology and Industrial Base Council.--
Section 2502(c) of such title is amended--
            (1) in paragraph (1), by striking out subparagraph (B) and 
        inserting in lieu thereof the following new subparagraph:
                    ``(B) programs for achieving such national security 
                objectives; and'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

    (c) Modification of Defense Dual-Use Critical Technology 
Partnerships Program.--Section 2511 of such title is amended to read as 
follows:

``Sec. 2511. Defense dual-use critical technology program

    ``(a) Establishment of Program.--The Secretary of Defense shall 
conduct a program to further the national security objectives set forth 
in section 2501(a) of this title by encouraging and providing for 
research, development, and application of dual-use critical tech

[[Page 110 STAT. 453]]

nologies. The Secretary may make grants, enter into contracts, or enter 
into cooperative agreements and other transactions pursuant to section 
2371 of this title in furtherance of the program. The Secretary shall 
identify projects to be conducted as part of the program.
    ``(b) Assistance Authorized.--The Secretary of Defense may provide 
technical and other assistance to facilitate the achievement of the 
purposes of projects conducted under the program. In providing such 
assistance, the Secretary shall make available, as appropriate for the 
work to be performed, equipment and facilities of Department of Defense 
laboratories (including the scientists and engineers at those 
laboratories) for purposes of projects selected by the Secretary.
    ``(c) Financial Commitment of Non-Federal Government Participants.--
(1) The total amount of funds provided by the Federal Government for a 
project conducted under the program may not exceed 50 percent of the 
total cost of the project. However, the Secretary of Defense may agree 
to a project in which the total amount of funds provided by the Federal 
Government exceeds 50 percent if the Secretary determines the project is 
particularly meritorious, but the project would not otherwise have 
sufficient non-Federal funding or in-kind contributions.

    ``(2) The Secretary may prescribe regulations to provide for 
consideration of in-kind contributions by non-Federal Government 
participants in a project conducted under the program for the purpose of 
calculating the share of the project costs that has been or is being 
undertaken by such participants. In such regulations, the Secretary may 
authorize a participant that is a small business concern to use funds 
received under the Small Business Innovation Research Program or the 
Small Business Technology Transfer Program to help pay the costs of 
project activities. Any such funds so used may be considered in 
calculating the amount of the financial commitment undertaken by the 
non-Federal Government participants unless the Secretary determines that 
the small business concern has not made a significant equity percentage 
contribution in the project from non-Federal sources.
    ``(3) The Secretary shall consider a project proposal submitted by a 
small business concern without regard to the ability of the small 
business concern to immediately meet its share of the anticipated 
project costs. Upon the selection of a project proposal submitted by a 
small business concern, the small business concern shall have a period 
of not less than 120 days in which to arrange to meet its financial 
commitment requirements under the project from sources other than a 
person of a foreign country. If the Secretary determines upon the 
expiration of that period that the small business concern will be unable 
to meet its share of the anticipated project costs, the Secretary shall 
revoke the selection of the project proposal submitted by the small 
business concern.
    ``(d) Selection Process.--Competitive procedures shall be used in 
the conduct of the program.
    ``(e) Selection Criteria.--The criteria for the selection of 
projects under the program shall include the following:
            ``(1) The extent to which the proposed project advances and 
        enhances the national security objectives set forth in section 
        2501(a) of this title.
            ``(2) The technical excellence of the proposed project.

[[Page 110 STAT. 454]]

            ``(3) The qualifications of the personnel proposed to 
        participate in the research activities of the proposed project.
            ``(4) An assessment of timely private sector investment in 
        activities to achieve the goals and objectives of the proposed 
        project other than through the project.
            ``(5) The potential effectiveness of the project in the 
        further development and application of each technology proposed 
        to be developed by the project for the national technology and 
        industrial base.
            ``(6) The extent of the financial commitment of eligible 
        firms to the proposed project.
            ``(7) The extent to which the project does not unnecessarily 
        duplicate projects undertaken by other agencies.

    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations for the purposes of this section.''.
    (d) Federal Defense Laboratory Diversification Program.--Section 
2519 of such title is amended--
            (1) in subsection (b), by striking out ``referred to in 
        section 2511(b) of this title''; and
            (2) in subsection (f), by striking out ``section 2511(f)'' 
        and inserting in lieu thereof ``section 2511(e)''.

    (e) Manufacturing Science and Technology Program.--Subsection (b) of 
section 2525 of such title is amended to read as follows:
    ``(b) Purpose of Program.--The Secretary of Defense shall use the 
program--
            ``(1) to provide centralized guidance and direction 
        (including goals, milestones, and priorities) to the military 
        departments and the Defense Agencies on all matters relating to 
        manufacturing technology;
            ``(2) to direct the development and implementation of 
        Department of Defense plans, programs, projects, activities, and 
        policies that promote the development and application of 
        advanced technologies to manufacturing processes, tools, and 
        equipment;
            ``(3) to improve the manufacturing quality, productivity, 
        technology, and practices of businesses and workers providing 
        goods and services to the Department of Defense;
            ``(4) to promote dual-use manufacturing processes;
            ``(5) to disseminate information concerning improved 
        manufacturing improvement concepts, including information on 
        such matters as best manufacturing practices, product data 
        exchange specifications, computer-aided acquisition and 
        logistics support, and rapid acquisition of manufactured parts;
            ``(6) to sustain and enhance the skills and capabilities of 
        the manufacturing work force;
            ``(7) to promote high-performance work systems (with 
        development and dissemination of production technologies that 
        build upon the skills and capabilities of the work force), high 
        levels of worker education and training; and
            ``(8) to ensure appropriate coordination between the 
        manufacturing technology programs and industrial preparedness 
        programs of the Department of Defense and similar programs 
        undertaken by other departments and agencies of the Federal 
        Government or by the private sector.''.

    (f) Repeal of Various Assistance Programs.--Sections 2512, 2513, 
2520, 2521, 2522, 2523, and 2524 of such title are repealed.

[[Page 110 STAT. 455]]

    (g) Repeal of Military-Civilian Integration and Technology Transfer 
Advisory Board.--Section 2516 of such title is repealed.
    (h) Repeal of Obsolete Definitions.--Section 2491 of such title is 
amended--
            (1) by striking out paragraphs (11) and (12); and
            (2) by redesignating paragraphs (13), (14), (15), and (16) 
        as paragraphs (11), (12), (13), and (14), respectively.

    (i) Clerical Amendments.--(1) The table of sections at the beginning 
of subchapter II of chapter 148 of such title is amended by striking out 
the item relating to section 2501 and inserting in lieu thereof the 
following new item:

``2501. National security objectives concerning national technology and 
           industrial base.''.

    (2) The table of sections at the beginning of subchapter III of such 
chapter is amended--
            (A) by striking out the item relating to section 2511 and 
        inserting in lieu thereof the following new item:

``2511. Defense dual-use critical technology program.''; and

            (B) by striking out the items relating to sections 2512, 
        2513, 2516, and 2520.

    (3) The table of sections at the beginning of subchapter IV of such 
chapter is amended by striking out the items relating to sections 2521, 
2522, 2523, and 2524.

SEC. 1082. AMMUNITION INDUSTRIAL BASE.

    (a) Review of Ammunition Procurement Programs.--The Secretary of 
Defense shall carry out a review of the programs of the Department of 
Defense for the procurement of ammunition. The review shall include the 
Department of Defense management of ammunition procurement programs, 
including the procedures of the Department for the planning for, 
budgeting for, administration, and carrying out of such programs. The 
Secretary shall begin the review not later than 30 days after the date 
of the enactment of this Act.
    (b) Matters To Be Reviewed.--The review under subsection (a) shall 
include an assessment of the following:
            (1) The practicability and desirability of (A) continuing to 
        use centralized procurement practices (through a single 
        executive agent) for the procurement of ammunition required by 
        the Armed Forces, and (B) using such centralized procurement 
        practices for the procurement of all such ammunition.
            (2) The capability of the ammunition production facilities 
        of the Government to meet the requirements of the Armed Forces 
        for procurement of ammunition.
            (3) The practicability and desirability of converting those 
        ammunition production facilities to ownership or operation by 
        private sector entities.
            (4) The practicability and desirability of integrating the 
        budget planning for the procurement of ammunition among the 
        Armed Forces.
            (5) The practicability and desirability of establishing an 
        advocate within the Department of Defense for matters relating 
        to the ammunition industrial base, with such an advocate to be 
        responsible for--
                    (A) establishing the quantity and price of 
                ammunition procured by the Armed Forces; and

[[Page 110 STAT. 456]]

                    (B) establishing and implementing policy to ensure 
                the continuing capability of the ammunition industrial 
                base in the United States to meet the requirements of 
                the Armed Forces.
            (6) The practicability and desirability of providing 
        information on the ammunition procurement practices of the Armed 
        Forces to Congress through a single source.

    (c) Report.--Not later than April 1, 1996, the Secretary shall 
submit to the congressional defense committees a report on the review 
carried out under subsection (a). The report shall include the 
following:
            (1) The results of the review.
            (2) A discussion of the methodologies used in carrying out 
        the review.
            (3) An assessment of various methods of ensuring the 
        continuing capability of the ammunition industrial base of the 
        United States to meet the requirements of the Armed Forces.
            (4) Recommendations of means (including legislation) of 
        implementing those methods in order to ensure such continuing 
        capability.
SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL CAPACITY.

    No funds appropriated pursuant to an authorization of appropriations 
in this Act may be used for capital investment in, or the development 
and construction of, a Government-owned, Government-operated defense 
industrial facility unless the Secretary of Defense certifies to the 
Congress that no similar capability or minimally used capacity exists in 
any other Government-owned, Government-operated defense industrial 
facility.
SEC. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY SCHOOL 
                          STUDENT INFORMATION FOR RECRUITING 
                          PURPOSES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the States (with respect to public schools) and entities 
        operating private secondary schools should not have a policy of 
        denying, or otherwise effectively preventing, the Secretary of 
        Defense from obtaining for military recruiting purposes--
                    (A) entry to any secondary school or access to 
                students at any secondary school equal to that of other 
                employers; or
                    (B) access to directory information pertaining to 
                students at secondary schools equal to that of other 
                employers (other than in a case in which an objection 
                has been raised as described in paragraph (2)); and
            (2) any State, and any entity operating a private secondary 
        school, that releases directory information secondary school 
        students should--
                    (A) give public notice of the categories of such 
                information to be released; and
                    (B) allow a reasonable period after such notice has 
                been given for a student or (in the case of an 
                individual younger than 18 years of age) a parent to 
                inform the school that any or all of such information 
                should not be released without obtaining prior consent 
                from the student or the parent, as the case may be.

[[Page 110 STAT. 457]]

    (b) Report on DOD Procedures.--Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a report on Department of 
Defense procedures for determining if and when a State or an entity 
operating a private secondary school has denied or prevented access to 
students or information as described in subsection (a)(1).
    (c) Definitions.--For purposes of this section:
            (1) The term ``directory information'' means, with respect 
        to a student, the student's name, address, telephone listing, 
        date and place of birth, level of education, degrees received, 
        and (if available) the most recent previous educational program 
        enrolled in by the student.
            (2) The term ``student'' means an individual enrolled in any 
        program of education who is 17 years of age or older.
SEC. 1085.  <<NOTE: 50 USC 435 note.>> DISCLOSURE OF INFORMATION 
                          CONCERNING UNACCOUNTED FOR UNITED STATES 
                          PERSONNEL FROM THE KOREAN CONFLICT, THE 
                          VIETNAM ERA, AND THE COLD WAR.

    Section 1082 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 401 note) is 
amended--
            (1) in subsection (b)(3)(A), by striking out ``cannot be 
        located after a reasonable effort.'' and inserting in lieu 
        thereof ``cannot be located by the Secretary of Defense--
                    ``(i) in the case of a person missing from the 
                Vietnam era, after a reasonable effort; and
                    ``(ii) in the case of a person missing from the 
                Korean Conflict or Cold War, after a period of 90 days 
                from the date on which any record or other information 
                referred to in paragraph (2) is received by the 
                Department of Defense for disclosure review from the 
                Archivist of the United States, the Library of Congress, 
                or the Joint United States-Russian Commission on POW/
                MIAs.''; and
            (2) in subsection (c)(1), by striking out ``not later than 
        September 30, 1995'' and inserting in lieu thereof ``not later 
        than January 2, 1996''.

SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

    (a) Submittal of JCS Report on Aircraft.--Not later than February 1, 
1996, the Secretary of Defense shall submit to Congress the report that, 
as of the date of the enactment of this Act, is in preparation by the 
Chairman of the Joint Chiefs of Staff on operational support airlift 
aircraft.
    (b) Content of Report.--(1) The report referred to in subsection (a) 
shall contain findings and recommendations on the
following:
            (A) Requirements for the modernization and safety of the 
        operational support airlift aircraft fleet.
            (B) The disposition of aircraft that would be excess to that 
        fleet upon fulfillment of the requirements referred to in 
        subparagraph (A).
            (C) Plans and requirements for the standardization of the 
        fleet, including plans and requirements for the provision of a 
        single manager for all logistical support and operational 
        requirements.
            (D) Central scheduling of all operational support airlift 
        aircraft.

[[Page 110 STAT. 458]]

            (E) Needs of the Department for helicopter support in the 
        National Capital Region, including the acceptable uses of that 
        support.

    (2) In preparing the report, the Chairman of the Joint Chiefs of 
Staff shall take into account the recommendation of the Commission on 
Roles and Missions of the Armed Forces to reduce the size of the 
operational support airlift aircraft fleet.
    (c) Regulations.--(1) Upon completion of the report referred to in 
subsection (a), the Secretary shall prescribe regulations, consistent 
with the findings and recommendations set forth in the report, for the 
operation, maintenance, disposition, and use of operational support 
airlift aircraft.
    (2) The regulations shall, to the maximum extent practicable, 
provide for, and encourage the use of, commercial airlines in lieu of 
the use of such aircraft.
    (3) The regulations shall apply uniformly throughout the Department.
    (4) The regulations shall not require exclusive use of such aircraft 
for any particular class of government personnel.
    (d) Reductions in Flying Hours.--(1) The Secretary shall ensure that 
the number of hours flown during fiscal year 1996 by operational support 
airlift aircraft does not exceed the number equal to 85 percent of the 
number of hours flown during fiscal year 1995 by operational support 
airlift aircraft.
    (2) The Secretary should ensure that the number of hours flown in 
the National Capital Region during fiscal year 1996 by helicopters of 
the operational support airlift aircraft fleet does not exceed the 
number equal to 85 percent of the number of hours flown in the National 
Capital Region during fiscal year 1995 by helicopters of the operational 
support airlift aircraft fleet.
    (e) Restriction on Availability of Funds.--Of the funds appropriated 
pursuant to section 301 for the operation and use of operational support 
airlift aircraft, not more than 50 percent is available for obligation 
until the Secretary submits to Congress the report referred to in 
subsection (a).
    (f) Definitions.--In this section:
            (1) The term ``operational support airlift aircraft'' means 
        aircraft of the Department of Defense designated within the 
        Department as operational support airlift aircraft.
            (2) The term ``National Capital Region'' has the meaning 
        given such term in section 2674(f)(2) of title 10, United States 
        Code.

SEC. 1087. CIVIL RESERVE AIR FLEET.

    Section 9512 of title 10, United States Code, is amended by striking 
out ``full Civil Reserve Air Fleet'' in subsections (b)(2) and (e) and 
inserting in lieu thereof ``Civil Reserve Air Fleet''.
SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO EMERGENCY 
                          EVACUATION OR EXTRAORDINARY 
                          CIRCUMSTANCES.

    (a) Settlement of Claims of Personnel.--Section 3721(b)(1) of title 
31, United States Code, is amended by inserting after the first sentence 
the following: ``If, however, the claim arose from an emergency 
evacuation or from extraordinary circumstances, the amount settled and 
paid under the authority of the preceding sentence may exceed $40,000, 
but may not exceed $100,000.''.

[[Page 110 STAT. 459]]

    (b) <<NOTE: 31 USC 3721 note.>> Applicability.--The amendment made 
by subsection (a) shall apply to claims arising before, on, or after the 
date of the enactment of this Act.

    (c) <<NOTE: 31 USC 3721 note.>> Representments of Previously 
Presented Claims.--(1) A claim under subsection (b) of section 3721 of 
title 31, United States Code, that was settled under such section before 
the date of the enactment of this Act may be represented under such 
section, as amended by subsection (a), to the head of the agency 
concerned to recover the amount equal to the difference between the 
actual amount of the damage or loss and the amount settled and paid 
under the authority of such section before the date of the enactment of 
this Act, except that--
            (A) the claim shall be represented in writing within two 
        years after the date of the enactment of this Act;
            (B) a determination of the actual amount of the damage or 
        loss shall have been made by the head of the agency concerned 
        pursuant to settlement of the claim under the authority of such 
        section before the date of the enactment of this Act;
            (C) the claimant shall have proof of the determination 
        referred to in subparagraph (B); and
            (D) the total of all amounts paid in settlement of the claim 
        under the authority of such section may not exceed $100,000.

    (2) Subsection (k) of such section shall not apply to bar 
representment of a claim described in paragraph (1), but shall apply to 
such a claim that is represented and settled under that section after 
the date of the enactment of this Act.
SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS 
                          AGAINST DECEASED MEMBERS.

    Section 3711 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(g)(1) The Secretary of Defense may suspend or terminate an action 
by the Secretary or by the Secretary of a military department under 
subsection (a) to collect a claim against the estate of a person who 
died while serving on active duty as a member of the Army, Navy, Air 
Force, or Marine Corps if the Secretary determines that, under the 
circumstances applicable with respect to the deceased person, it is 
appropriate to do so.
    ``(2) In this subsection, the term `active duty' has the meaning 
given that term in section 101 of title 10.''.
SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR DEPENDENTS 
                          OF UNITED STATES GOVERNMENT PERSONNEL.

    (a) Authority To Carry Out Transactions.--Subsection (b) of section 
3342 of title 31, United States Code, is amended--
            (1) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (2) by inserting after paragraph (2) the following new
        paragraph:
            ``(3) a dependent of personnel of the Government, but only--
                    ``(A) at a United States installation at which 
                adequate banking facilities are not available; and
                    ``(B) in the case of negotiation of negotiable 
                instruments, if the dependent's sponsor authorizes, in 
                writing, the presentation of negotiable instruments to 
                the disbursing official for negotiation.''.

[[Page 110 STAT. 460]]

    (b) Pay Offset.--Subsection (c) of such section is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) The amount of any deficiency resulting from cashing a check 
for a dependent under subsection (b)(3), including any charges assessed 
against the disbursing official by a financial institution for 
insufficient funds to pay the check, may be offset from the pay of the 
dependent's sponsor.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following:
    ``(e) Regulations prescribed under subsection (d) shall include 
regulations that define the terms `dependent' and `sponsor' for the 
purposes of this section. In the regulations, the term `dependent', with 
respect to a member of a uniformed service, shall have the meaning given 
that term in section 401 of title 37.''.

SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER. <<NOTE: Virginia.>> 

    (a) Designation of National Maritime Center.--The NAUTICUS building, 
located at one Waterside Drive, Norfolk, Virginia, shall be known and 
designated as the ``National Maritime Center''.
    (b) Reference to National Maritime Center.--Any reference in a law, 
map, regulation, document, paper, or other record of the United States 
to the building referred to in subsection (a) shall be deemed to be a 
reference to the ``National Maritime Center''.
SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION OF 
                          MIDWAY ISLANDS.

    (a) Findings.--Congress makes the following findings:
            (1) September 2, 1995, marks the 50th anniversary of the 
        United States victory over Japan in World War II.
            (2) The Battle of Midway proved to be the turning point in 
        the war in the Pacific, as United States Navy forces inflicted 
        such severe losses on the Imperial Japanese Navy during the 
        battle that the Imperial Japanese Navy never again took the 
        offensive against United States or allied forces.
            (3) During the Battle of Midway, an outnumbered force of the 
        United States Navy, consisting of 29 ships and other units of 
        the Armed Forces under the command of Admiral Nimitz and Admiral 
        Spruance, out-maneuvered and out-fought 350 ships of the 
        Imperial Japanese Navy.
            (4) It is in the public interest to erect a memorial to the 
        Battle of Midway that is suitable to express the enduring 
        gratitude of the American people for victory in the battle and 
        to inspire future generations of Americans with the heroism and 
        sacrifice of the members of the Armed Forces who achieved that 
        victory.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Midway Islands and the surrounding seas deserve to 
        be memorialized;
            (2) the historic structures related to the Battle of Midway 
        should be maintained, in accordance with the National Historic 
        Preservation Act (16 U.S.C. 470-470t), and subject to the 
        availability of appropriations for that purpose.
            (3) appropriate access to the Midway Islands by survivors of 
        the Battle of Midway, their families, and other visitors should 
        be provided in a manner that ensures the public health and

[[Page 110 STAT. 461]]

        safety on the Midway Islands and the conservation of the natural 
        resources of those islands in accordance with existing Federal 
        law.

SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

    It is the sense of the Senate that in pursuit of a balanced Federal 
budget, Congress should exercise fiscal restraint, particularly in 
authorizing spending not requested by the executive branch and in 
proposing new programs.
SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK INSURANCE.

    Section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1294), 
is amended by striking ``June 30, 1995'' and inserting in lieu thereof 
``June 30, 2000''.

 TITLE XI-- <<NOTE: Military Justice Amendments of 1995.>> UNIFORM CODE 
OF MILITARY JUSTICE

SEC. 1101. <<NOTE: 10 USC 801 note.>> SHORT TITLE.

    This title may be cited as the ``Military Justice Amendments of 
1995''.

SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of chapter 47 of title 10, 
United States Code (the Uniform Code of Military Justice).

                          Subtitle A--Offenses

SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

    Section 847(b) (article 47(b)) is amended--
            (1) in the first sentence, by inserting ``indictment or'' 
        after ``shall be tried on''; and
            (2) in the second sentence, by striking out ``shall be'' and 
        all that follows and inserting in lieu thereof ``shall be fined 
        or imprisoned, or both, at the court's discretion.''.

SEC. 1112. FLIGHT FROM APPREHENSION.

    (a) In General.--Section 895 (article 95) is amended to read as 
follows:

``Sec. 895. Art. 95. Resistance, flight, breach of arrest, and escape

    ``Any person subject to this chapter who--
            ``(1) resists apprehension;
            ``(2) flees from apprehension;
            ``(3) breaks arrest; or
            ``(4) escapes from custody or confinement;

shall be punished as a court-martial may direct.''.
    (b) Clerical Amendment.--The item relating to section 895 (article 
95) in the table of sections at the beginning of subchapter X is amended 
to read as follows:

``895. Art. 95. Resistance, flight, breach of arrest, and escape.''.

[[Page 110 STAT. 462]]

SEC. 1113. CARNAL KNOWLEDGE.

    (a) Gender Neutrality.--Subsection (b) of section 920 (article 120) 
is amended to read as follows:
    ``(b) Any person subject to this chapter who, under circumstances 
not amounting to rape, commits an act of sexual intercourse with a 
person--
            ``(1) who is not that person's spouse; and
            ``(2) who has not attained the age of sixteen years;

is guilty of carnal knowledge and shall be punished as a court-martial 
may direct.''.
    (b) Mistake of Fact.--Such section (article) is further amended by 
adding at the end the following new subsection:
    ``(d)(1) In a prosecution under subsection (b), it is an affirmative 
defense that--
            ``(A) the person with whom the accused committed the act of 
        sexual intercourse had at the time of the alleged offense 
        attained the age of twelve years; and
            ``(B) the accused reasonably believed that that person had 
        at the time of the alleged offense attained the age of sixteen 
        years.

    ``(2) The accused has the burden of proving a defense under 
paragraph (1) by a preponderance of the evidence.''.

                          Subtitle B--Sentences

SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND ALLOWANCES 
                          AND REDUCTIONS IN GRADE BY SENTENCE OF 
                          COURT-MARTIAL.

    (a) Effective Date of Specified Punishments.--Subsection (a) of 
section 857 (article 57) is amended to read as follows:
    ``(a)(1) Any forfeiture of pay or allowances or reduction in grade 
that is included in a sentence of a court-martial takes effect on the 
earlier of--
            ``(A) the date that is 14 days after the date on which the 
        sentence is adjudged; or
            ``(B) the date on which the sentence is approved by the 
        convening authority.

    ``(2) On application by an accused, the convening authority may 
defer a forfeiture of pay or allowances or reduction in grade that would 
otherwise become effective under paragraph (1)(A) until the date on 
which the sentence is approved by the convening authority. Such a 
deferment may be rescinded at any time by the convening authority.
    ``(3) A forfeiture of pay or allowances shall be applicable to pay 
and allowances accruing on and after the date on which the sentence 
takes effect.

    ``(4) In this subsection, the term `convening authority', with 
respect to a sentence of a court-martial, means any person authorized to 
act on the sentence under section 860 of this title (article 60).''.

    (b) <<NOTE: 10 USC 857 note.>> Applicability.--The amendment made by 
subsection (a) shall apply to a case in which a sentence is adjudged by 
a court-martial on or after the first day of the first month that begins 
at least 30 days after the date of the enactment of this Act.

[[Page 110 STAT. 463]]

SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING 
                          CONFINEMENT.

    (a) Effect of Punitive Separation or Confinement for More Than Six 
Months.--(1) Subchapter VIII is amended by inserting after section 858a 
(article 58a) the following:
``Sec. 858b. Art. 58b. Sentences: forfeiture of pay and allowances 
                    during confinement

    ``(a)(1) A court-martial sentence described in paragraph (2) shall 
result in the forfeiture of pay and allowances due that member during 
any period of confinement or parole. The forfeiture pursuant to this 
section shall take effect on the date determined under section 857(a) of 
this title (article 57(a)) and may be deferred as provided in that 
section. The pay and allowances forfeited, in the case of a general 
court-martial, shall be all pay and allowances due that member during 
such period and, in the case of a special court-martial, shall be two-
thirds of all pay and allowances due that member during such period.

    ``(2) A sentence covered by this section is any sentence that 
includes--
            ``(A) confinement for more than six months or death; or
            ``(B) confinement for six months or less and a dishonorable 
        or bad-conduct discharge or dismissal.

    ``(b) In a case involving an accused who has dependents, the 
convening authority or other person acting under section 860 of this 
title (article 60) may waive any or all of the forfeitures of pay and 
allowances required by subsection (a) for a period not to exceed six 
months. Any amount of pay or allowances that, except for a waiver under 
this subsection, would be forfeited shall be paid, as the convening 
authority or other person taking action directs, to the dependents of 
the accused.
    ``(c) If the sentence of a member who forfeits pay and allowances 
under subsection (a) is set aside or disapproved or, as finally 
approved, does not provide for a punishment referred to in subsection 
(a)(2), the member shall be paid the pay and allowances which the member 
would have been paid, except for the forfeiture, for the period during 
which the forfeiture was in effect.''.

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

``858b. 58b. Sentences: forfeiture of pay and allowances during 
           confinement.''.

    (b) <<NOTE: 10 USC 858b note.>> Applicability.--The section 
(article) added by the amendment made by subsection (a)(1) shall apply 
to a case in which a sentence is adjudged by a court-martial on or after 
the first day of the first month that begins at least 30 days after the 
date of the enactment of this Act.
    (c) Conforming Amendment.--(1) Section 804 of title 37, United 
States Code, is repealed.

    (2) The table of sections at the beginning of chapter 15 of such 
title is amended by striking out the item relating to section 804.

SEC. 1123. DEFERMENT OF CONFINEMENT.

    (a) Deferment.--Subchapter VIII is amended--
            (1) by inserting after subsection (c) of section 857 
        (article 57) the following:

[[Page 110 STAT. 464]]

``Sec. 857a. Art. 57a. Deferment of sentences'';

            (2) by redesignating the succeeding two subsections as 
        subsection (a) and (b);
            (3) in subsection (b), as redesignated by paragraph (2), by 
        striking out ``postpone'' and inserting in lieu thereof 
        ``defer''; and
            (4) by inserting after subsection (b), as redesignated by 
        paragraph (2), the following:

    ``(c) In any case in which a court-martial sentences a person to 
confinement and the sentence to confinement has been ordered executed, 
but in which review of the case under section 867(a)(2) of this title 
(article 67(a)(2)) is pending, the Secretary concerned may defer further 
service of the sentence to confinement while that review is pending.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 857 (article 57) the following new item:

``857a. 57a. Deferment of sentences.''.

               Subtitle C--Pretrial and Post-Trial Actions

SEC. 1131. ARTICLE 32 INVESTIGATIONS.

    Section 832 (article 32) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):

    ``(d) If evidence adduced in an investigation under this article 
indicates that the accused committed an uncharged offense, the 
investigating officer may investigate the subject matter of that offense 
without the accused having first been charged with the offense if the 
accused--
            ``(1) is present at the investigation;
            ``(2) is informed of the nature of each uncharged offense 
        investigated; and
            ``(3) is afforded the opportunities for representation, 
        cross-examination, and presentation prescribed in subsection 
        (b).''.
SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY FOR 
                          CONSIDERATION.

    Section 860(b)(1) (article 60(b)(1)) is amended by inserting after 
the first sentence the following: ``Any such submission shall be in 
writing.''.
SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY REASON 
                          OF LACK OF MENTAL CAPACITY OR MENTAL 
                          RESPONSIBILITY.

    (a) Applicable Procedures.--(1) Subchapter IX is amended by 
inserting after section 876a (article 76a) the following:
``Sec. 876b. Art. 76b. Lack of mental capacity or mental 
                    responsibility: commitment of accused for 
                    examination and treatment

    ``(a) Persons Incompetent To Stand Trial.--(1) In the case of a 
person determined under this chapter to be presently suffering from a 
mental disease or defect rendering the person mentally incompetent to 
the extent that the person is unable to understand

[[Page 110 STAT. 465]]

the nature of the proceedings against that person or to conduct or 
cooperate intelligently in the defense of the case, the general court-
martial convening authority for that person shall commit the person to 
the custody of the Attorney General.
    ``(2) The Attorney General shall take action in accordance with 
section 4241(d) of title 18.
    ``(3) If at the end of the period for hospitalization provided for 
in section 4241(d) of title 18, it is determined that the committed 
person's mental condition has not so improved as to permit the trial to 
proceed, action shall be taken in accordance with section 4246 of such 
title.
    ``(4)(A) <<NOTE: Notification.>> When the director of a facility in 
which a person is hospitalized pursuant to paragraph (2) determines that 
the person has recovered to such an extent that the person is able to 
understand the nature of the proceedings against the person and to 
conduct or cooperate intelligently in the defense of the case, the 
director shall promptly transmit a notification of that determination to 
the Attorney General and to the general court-martial convening 
authority for the person. The director shall send a copy of the 
notification to the person's counsel.

    ``(B) Upon receipt of a notification, the general court-martial 
convening authority shall promptly take custody of the person unless the 
person covered by the notification is no longer subject to this chapter. 
If the person is no longer subject to this chapter, the Attorney General 
shall take any action within the authority of the Attorney General that 
the Attorney General considers appropriate regarding the person.
    ``(C) The director of the facility may retain custody of the person 
for not more than 30 days after transmitting the notifications required 
by subparagraph (A).
    ``(5) In the application of section 4246 of title 18 to a case under 
this subsection, references to the court that ordered the commitment of 
a person, and to the clerk of such court, shall be deemed to refer to 
the general court-martial convening authority for that person. However, 
if the person is no longer subject to this chapter at a time relevant to 
the application of such section to the person, the United States 
district court for the district where the person is hospitalized or 
otherwise may be found shall be considered as the court that ordered the 
commitment of the person.
    ``(b) Persons Found Not Guilty by Reason of Lack of Mental 
Responsibility.--(1) If a person is found by a court-martial not guilty 
only by reason of lack of mental responsibility, the person shall be 
committed to a suitable facility until the person is eligible for 
release in accordance with this section.
    ``(2) The court-martial shall conduct a hearing on the mental 
condition in accordance with subsection (c) of section 4243 of title 18. 
Subsections (b) and (d) of that section shall apply with respect to the 
hearing.
    ``(3) <<NOTE: Reports.>> A report of the results of the hearing 
shall be made to the general court-martial convening authority for the 
person.

    ``(4) If the court-martial fails to find by the standard specified 
in subsection (d) of section 4243 of title 18 that the person's release 
would not create a substantial risk of bodily injury to another person 
or serious damage of property of another due to a present mental disease 
or defect--

[[Page 110 STAT. 466]]

            ``(A) the general court-martial convening authority may 
        commit the person to the custody of the Attorney General; and
            ``(B) the Attorney General shall take action in accordance 
        with subsection (e) of section 4243 of title 18.

    ``(5) Subsections (f), (g), and (h) of section 4243 of title 18 
shall apply in the case of a person hospitalized pursuant to paragraph 
(4)(B), except that the United States district court for the district 
where the person is hospitalized shall be considered as the court that 
ordered the person's commitment.
    ``(c) General Provisions.--(1) Except as otherwise provided in this 
subsection and subsection (d)(1), the provisions of section 4247 of 
title 18 apply in the administration of this section.
    ``(2) In the application of section 4247(d) of title 18 to hearings 
conducted by a court-martial under this section or by (or by order of) a 
general court-martial convening authority under this section, the 
reference in that section to section 3006A of such title does not apply.
    ``(d) Applicability.--(1) The provisions of chapter 313 of title 18 
referred to in this section apply according to the provisions of this 
section notwithstanding section 4247(j) of title 18.
    ``(2) If the status of a person as described in section 802 of this 
title (article 2) terminates while the person is, pursuant to this 
section, in the custody of the Attorney General, hospitalized, or on 
conditional release under a prescribed regimen of medical, psychiatric, 
or psychological care or treatment, the provisions of this section 
establishing requirements and procedures regarding a person no longer 
subject to this chapter shall continue to apply to that person 
notwithstanding the change of status.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 876a (article 
76a) the following:

``876b. 76b. Lack of mental capacity or mental responsibility: 
           commitment of accused for examination and treatment.''.

    (b) Conforming Amendment.--Section 802 (article 2) is amended by 
adding at the end the following new subsection:
    ``(e) The provisions of this section are subject to section 
876b(d)(2) of this title (article 76b(d)(2)).''.
    (c) <<NOTE: 10 USC 876b note.>> Effective Date.--Section 876b of 
title 10, United States Code (article 76b of the Uniform Code of 
Military Justice), as added by subsection (a), shall take effect at the 
end of the six-month period beginning on the date of the enactment of 
this Act and shall apply with respect to charges referred to courts-
martial after the end of that period.

                      Subtitle D--Appellate Matters

SEC. 1141. APPEALS BY THE UNITED STATES.

    (a) Appeals Relating to Disclosure of Classified Information.--
Section 862(a)(1) (article 62(a)(1)) is amended to read as follows:
    ``(a)(1) In a trial by court-martial in which a military judge 
presides and in which a punitive discharge may be adjudged, the United 
States may appeal the following (other than an order or ruling that is, 
or that amounts to, a finding of not guilty with respect to the charge 
or specification):

[[Page 110 STAT. 467]]

            ``(A) An order or ruling of the military judge which 
        terminates the proceedings with respect to a charge or 
        specification.
            ``(B) An order or ruling which excludes evidence that is 
        substantial proof of a fact material in the proceeding.
            ``(C) An order or ruling which directs the disclosure of 
        classified information.
            ``(D) An order or ruling which imposes sanctions for 
        nondisclosure of classified information.
            ``(E) A refusal of the military judge to issue a protective 
        order sought by the United States to prevent the disclosure of 
        classified information.
            ``(F) A refusal by the military judge to enforce an order 
        described in subparagraph (E) that has previously been issued by 
        appropriate authority.''.

    (b) Definitions.--Section 801 (article 1) is amended by inserting 
after paragraph (14) the following new paragraphs:
            ``(15) The term `classified information' means (A) any 
        information or material that has been determined by an official 
        of the United States pursuant to law, an Executive order, or 
        regulation to require protection against unauthorized disclosure 
        for reasons of national security, and (B) any restricted data, 
        as defined in section 11(y) of the Atomic Energy Act of 1954 (42 
        U.S.C. 2014(y)).
            ``(16) The term `national security' means the national 
        defense and foreign relations of the United States.''.
SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF 
                          THE UNITED STATES TO DESIGNATE ARTICLE 
                          III JUDGES FOR TEMPORARY SERVICE ON 
                          COURT OF APPEALS FOR THE ARMED FORCES.

    Subsection (i) of section 1301 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 10 U.S.C. 942 
note) is repealed.

                        Subtitle E--Other Matters

SEC. 1151.  <<NOTE: 10 USC 802 note.>> ADVISORY COMMITTEE ON 
                          CRIMINAL LAW JURISDICTION OVER CIVILIANS 
                          ACCOMPANYING THE ARMED FORCES IN TIME OF 
                          ARMED CONFLICT.

    (a) Establishment.--Not later than 45 days after the date of the 
enactment of this Act, the Secretary of Defense and the Attorney General 
shall jointly appoint an advisory committee to review and make 
recommendations concerning the appropriate forum for criminal 
jurisdiction over civilians accompanying the Armed Forces in the field 
outside the United States in time of armed conflict.
    (b) Membership.--The committee shall be composed of at least five 
individuals, including experts in military law, international law, and 
Federal civilian criminal law. In making appointments to the committee, 
the Secretary and the Attorney General shall ensure that the members of 
the committee reflect diverse experiences in the conduct of prosecution 
and defense functions.
    (c) Duties.--The committee shall do the following:
            (1) Review historical experiences and current practices 
        concerning the use, training, discipline, and functions of 
        civilians accompanying the Armed Forces in the field.

[[Page 110 STAT. 468]]

            (2) Based upon such review and other information available 
        to the committee, develop specific recommendations concerning 
        the advisability and feasibility of establishing United States 
        criminal law jurisdiction over persons who as civilians 
        accompany the Armed Forces in the field outside the United 
        States during time of armed conflict not involving a war 
        declared by Congress, including whether such jurisdiction should 
        be established through any of the following means (or a 
        combination of such means depending upon the degree of the armed 
        conflict involved):
                    (A) Establishing court-martial jurisdiction over 
                such persons.
                    (B) Extending the jurisdiction of the Article III 
                courts to cover such persons.
                    (C) Establishing an Article I court to exercise 
                criminal jurisdiction over such persons.
            (3) Develop such additional recommendations as the committee 
        considers appropriate as a result of the review.

    (d) Report.--(1) Not later than December 15, 1996, the advisory 
committee shall transmit to the Secretary of Defense and the Attorney 
General a report setting forth its findings and recommendations, 
including the recommendations required under subsection (c)(2).
    (2) Not later than January 15, 1997, the Secretary of Defense and 
the Attorney General shall jointly transmit the report of the advisory 
committee to Congress. The Secretary and the Attorney General may 
include in the transmittal any joint comments on the report that they 
consider appropriate, and either such official may include in the 
transmittal any separate comments on the report that such official 
considers appropriate.
    (e) Definitions.--For purposes of this section:
            (1) The term ``Article I court'' means a court established 
        under Article I of the Constitution.
            (2) The term ``Article III court'' means a court established 
        under Article III of the Constitution.

    (f) Termination of Committee.--The advisory committee shall 
terminate 30 days after the date on which the report of the committee is 
submitted to Congress under subsection (d)(2).
SEC. 1152. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN THE 
                          UNIFORM CODE OF MILITARY JUSTICE.

    Section 937(a)(1) (article 137(a)(1)) is amended by striking out 
``within six days'' and inserting in lieu thereof ``within fourteen 
days''.

SEC. 1153. TECHNICAL AMENDMENT.

    Section 866(f) (article 66(f)) is amended by striking out ``Courts 
of Military Review'' both places it appears and inserting in lieu 
thereof ``Courts of Criminal Appeals''.

[[Page 110 STAT. 469]]

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

SEC. 1201. <<NOTE: 22 USC 5955 note.>> SPECIFICATION OF COOPERATIVE 
            THREAT REDUCTION PROGRAMS.

    (a) In General.--For purposes of section 301 and other provisions of 
this Act, Cooperative Threat Reduction programs are the programs 
specified in subsection (b).
    (b) Specified Programs.--The programs referred to in subsection (a) 
are the following programs with respect to states of the former Soviet 
Union:
            (1) Programs to facilitate the elimination, and the safe and 
        secure transportation and storage, of nuclear, chemical, and 
        other weapons and their delivery vehicles.
            (2) Programs to facilitate the safe and secure storage of 
        fissile materials derived from the elimination of nuclear 
        weapons.
            (3) Programs to prevent the proliferation of weapons, 
        weapons components, and weapons-related technology and 
        expertise.
            (4) Programs to expand military-to-military and defense 
        contacts.

SEC. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

    (a) In General.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs, not more than the following amounts may be obligated 
for the purposes specified:
            (1) For elimination of strategic offensive weapons in 
        Russia, Ukraine, Belarus, and Kazakhstan, $90,000,000.
            (2) For weapons security in Russia, $42,500,000.
            (3) For the Defense Enterprise Fund, $0.
            (4) For nuclear infrastructure elimination in Ukraine, 
        Belarus, and Kazakhstan, $35,000,000.
            (5) For planning and design of a storage facility for 
        Russian fissile material, $29,000,000.
            (6) For planning and design of a chemical weapons 
        destruction facility in Russia, $73,000,000.
            (7) For activities designated as Defense and Military 
        Contacts/General Support/Training in Russia, Ukraine, Belarus, 
        and Kazakhstan, $10,000,000.
            (8) For activities designated as Other Assessments/Support 
        $20,500,000.

    (b) Limited Authority To Vary Individual Amounts.--(1) If the 
Secretary of Defense determines that it is necessary to do so in the 
national interest, the Secretary may, subject to paragraph (2), obligate 
amounts for the purposes stated in any of the paragraphs of subsection 
(a) in excess of the amount specified for those purposes in that 
paragraph, but not in excess of 115 percent of that amount. However, the 
total amount obligated for the purposes stated in the paragraphs in 
subsection (a) may not by reason of the use of the authority provided in 
the preceding sentence exceed the sum of the amounts specified in those
paragraphs.

[[Page 110 STAT. 470]]

    (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) <<NOTE: Notification.>> the Secretary submits to 
        Congress a notification of the intent to do so together with a 
        complete discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the
        notification.

    (c) Reimbursement of Pay Accounts.--Funds appropriated pursuant to 
the authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs may be transferred to military personnel 
accounts for reimbursement of those accounts for the amount of pay and 
allowances paid to reserve component personnel for service while engaged 
in any activity under a Cooperative Threat Reduction program.
SEC. 1203. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING EXERCISES 
                          AND RELATED ACTIVITIES WITH RUSSIA.

    None of the funds appropriated pursuant to the authorization in 
section 301 for Cooperative Threat Reduction programs may be obligated 
or expended for the purpose of conducting with Russia any peacekeeping 
exercise or other peacekeeping-related activity.
SEC. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS 
                          DESTRUCTION.

    Section 211 of Public Law 102-228 (22 U.S.C. 2551 note) is amended 
by adding at the end the following new subsection:
    ``(c) <<NOTE: President.>> As part of a transmission to Congress 
under subsection (b) of a certification that a proposed recipient of 
United States assistance under this title is committed to carrying out 
the matters specified in each of paragraphs (1) through (6) of that 
subsection, the President shall include a statement setting forth, in 
unclassified form (together with a classified annex if necessary), the 
determination of the President, with respect to each such paragraph, as 
to whether that proposed recipient is at that time in fact carrying out 
the matter specified in that paragraph.''.

SEC. 1205. <<NOTE: 22 USC 5955 note. Reports.>> PRIOR NOTICE TO CONGRESS 
            OF OBLIGATION OF FUNDS.

    (a) Annual Requirement.--(1) Not less than 15 days before any 
obligation of any funds appropriated for any fiscal year for a program 
specified under section 1201 as a Cooperative Threat Reduction program, 
the Secretary of Defense shall submit to the congressional committees 
specified in paragraph (2) a report on that proposed obligation for that 
program for that fiscal year.
    (2) The congressional committees referred to in paragraph (1) are 
the following:
            (A) The Committee on Armed Services, the Committee on 
        Foreign Relations, and the Committee on Appropriations of the 
        Senate.
            (B) The Committee on National Security, the Committee on 
        International Relations, and the Committee on Appropriations of 
        the House of Representatives.

    (b) Matters To Be Specified in Reports.--Each such report shall 
specify--
            (1) the activities and forms of assistance for which the 
        Secretary of Defense plans to obligate funds;
            (2) the amount of the proposed obligation; and

[[Page 110 STAT. 471]]

            (3) the projected involvement (if any) of any department or 
        agency of the United States (in addition to the Department of 
        Defense) and of the private sector of the United States in the 
        activities and forms of assistance for which the Secretary of 
        Defense plans to obligate such funds.

SEC. 1206. <<NOTE: 22 USC 5955 note.>> REPORT ON ACCOUNTING FOR UNITED 
            STATES ASSISTANCE.

    (a) Report.--(1) The Secretary of Defense shall submit to Congress 
an annual report on the efforts made by the United States (including 
efforts through the use of audits, examinations, and on-site 
inspections) to ensure that assistance provided under Cooperative Threat 
Reduction programs is fully accounted for and that such assistance is 
being used for its intended purposes.
    (2) A report shall be submitted under this section not later than 
January 31 of each year until the Cooperative Threat Reduction programs 
are completed.
    (b) Information To Be Included.--Each report under this section 
shall include the following:
            (1) A list of cooperative threat reduction assistance that 
        has been provided before the date of the report.
            (2) A description of the current location of the assistance 
        provided and the current condition of such assistance.
            (3) A determination of whether the assistance has been used 
        for its intended purpose.
            (4) A description of the activities planned to be carried 
        out during the next fiscal year to ensure that cooperative 
        threat reduction assistance provided during that fiscal year is 
        fully accounted for and is used for its intended purpose.

    (c) Comptroller General Assessment.--Not later than 30 days after 
the date on which a report of the Secretary under subsection (a) is 
submitted to Congress, the Comptroller General of the United States 
shall submit to Congress a report giving the Comptroller General's 
assessment of the report and making any recommendations that the 
Comptroller General considers appropriate.
SEC. 1207.  <<NOTE: Certification.>> LIMITATION ON ASSISTANCE TO 
                          NUCLEAR WEAPONS SCIENTISTS OF FORMER 
                          SOVIET UNION.

    Amounts appropriated pursuant to the authorization of appropriations 
in section 301 for Cooperative Threat Reduction programs may not be 
obligated for any program established primarily to assist nuclear 
weapons scientists in states of the former Soviet Union until 30 days 
after the date on which the Secretary of Defense certifies in writing to 
Congress that the funds to be obligated will not be used (1) to 
contribute to the modernization of the strategic nuclear forces of such 
states, or (2) for research, development, or production of weapons of 
mass destruction.
SEC. 1208.  <<NOTE: President.>> LIMITATION RELATING TO OFFENSIVE 
                          BIOLOGICAL WARFARE PROGRAM OF RUSSIA.

    (a) Limitation.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs that is available for the purpose stated in section 
1202(a)(6), $60,000,000 may not be obligated or expended until the 
President submits to Congress either a certification as provided in 
subsection (b) or a certification as provided in subsection (c).

[[Page 110 STAT. 472]]

    (b) Certification With Respect to Offensive Biological Warfare 
Program of Russia.--A certification under this subsection is a 
certification by the President of each of the following:
            (1) That Russia is in compliance with its obligations under 
        the Biological Weapons Convention.
            (2) That Russia has agreed with the United States and the 
        United Kingdom on a common set of procedures to govern visits by 
        officials of the United States and United Kingdom to military 
        biological facilities of Russia, as called for under the Joint 
        Statement on Biological Weapons issued by officials of the 
        United States, the United Kingdom, and Russia on September 14, 
        1992.
            (3) That visits by officials of the United States and United 
        Kingdom to the four declared military biological facilities of 
        Russia have occurred.

    (c) Alternative Certification.--A certification under this 
subsection is a certification by the President that the President is 
unable to make a certification under subsection (b).
    (d) Use of Funds Upon Alternative Certification.--If the President 
makes a certification under subsection (c), the $60,000,000 specified in 
subsection (a)--
            (1) shall not be available for the purpose stated in section 
        1202(a)(6); and
            (2) shall be available for activities in Ukraine, 
        Kazakhstan, and Belarus--
                    (A) for the elimination of strategic offensive 
                weapons (in addition to the amount specified in section 
                1202(a)(1)); and
                    (B) for nuclear infrastructure elimination (in 
                addition to the amount specified in section 1202(a)(4)).
SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS 
                          DESTRUCTION FACILITY.

    (a) Limitation.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs that is available for planning and design of a 
chemical weapons destruction facility, not more than one-half of such 
amount may be obligated or expended until the President certifies to 
Congress the following:
            (1) That the United States and Russia have completed a joint 
        laboratory study to determine the feasibility of an appropriate 
        technology for destruction of chemical weapons of Russia.
            (2) That Russia is making reasonable progress, with the 
        assistance of the United States (if necessary), toward the 
        completion of a comprehensive implementation plan for managing 
        and funding the dismantlement and destruction of Russia's 
        chemical weapons stockpile.
            (3) That the United States and Russia have made substantial 
        progress toward resolution, to the satisfaction of the United 
        States, of outstanding compliance issues under the 1989 Wyoming 
        Memorandum of Understanding and the 1990 Bilateral Destruction 
        Agreement.

    (b) Definitions.--In this section:
            (1) The term ``1989 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

[[Page 110 STAT. 473]]

        Bilateral Verification Experiment and Data Exchange Related to 
        Prohibition on Chemical Weapons, signed at Jackson Hole, 
        Wyoming, on September 23, 1989.
            (2) The term ``1990 Bilateral Destruction Agreement'' means 
        the Agreement between the United States of America and the Union 
        of Soviet Socialist Republics on destruction and nonproduction 
        of chemical weapons and on measures to facilitate the 
        multilateral convention on banning chemical weapons signed on 
        June 1, 1990.

              TITLE XIII--MATTERS RELATING TO OTHER NATIONS

                   Subtitle A--Peacekeeping Provisions

SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS FOR 
                          UNITED STATES SHARE OF COSTS OF UNITED 
                          NATIONS PEACEKEEPING ACTIVITIES.

    (a) In General.--Chapter 20 of title 10, United States Code, is 
amended by inserting after section 404 the following new section:
``Sec. 405. Use of Department of Defense funds for United States 
                  share of costs of United Nations peacekeeping 
                  activities: limitation

    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to make a financial contribution 
(directly or through another department or agency of the United States) 
to the United Nations--
            ``(1) for the costs of a United Nations peacekeeping 
        activity; or
            ``(2) for any United States arrearage to the United Nations.

    ``(b) Application of Prohibition.--The prohibition in subsection (a) 
applies to voluntary contributions, as well as to contributions pursuant 
to assessment by the United Nations for the United States share of the 
costs of a peacekeeping activity.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter I of such chapter is amended by adding at the end the 
following new item:

``405. Use of Department of Defense funds for United States share of 
           costs of United Nations peacekeeping activities: 
           limitation.''.

              Subtitle B--Humanitarian Assistance Programs

SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID 
                          PROGRAMS.

    (a) Covered Programs.--For purposes of section 301 and other 
provisions of this Act, programs of the Department of Defense designated 
as Overseas Humanitarian, Disaster, and Civic Aid (OHDACA) programs are 
the programs provided by sections 401, 402, 404, 2547, and 2551 of title 
10, United States Code.
    (b) GAO Report.--Not later than March 1, 1996, the Comptroller 
General of the United States shall provide to the congressional defense 
committees a report on--

[[Page 110 STAT. 474]]

            (1) existing funding mechanisms available to cover the costs 
        associated with the Overseas Humanitarian, Disaster, and Civic 
        Assistance activities through funds provided to the Department 
        of State or the Agency for International Development, and
            (2) if such mechanisms do not exist, actions necessary to 
        institute such mechanisms, including any changes in existing law 
        or regulations.

SEC. 1312. HUMANITARIAN ASSISTANCE.

    Section 2551 of title 10, United States Code, is amended--
            (1) by striking out subsections (b) and (c);
            (2) by redesignating subsection (d) as subsection (b);
            (3) by striking out subsection (e) and inserting in lieu 
        thereof the following:

    ``(c) Status Reports.--(1) The Secretary of Defense shall submit to 
the congressional committees specified in subsection (f) an annual 
report on the provision of humanitarian assistance pursuant to this 
section for the prior fiscal year. The report shall be submitted each 
year at the time of the budget submission by the President for the next 
fiscal year.
    ``(2) Each report required by paragraph (1) shall cover all 
provisions of law that authorize appropriations for humanitarian 
assistance to be available from the Department of Defense for the 
purposes of this section.
    ``(3) Each report under this subsection shall set forth the 
following information regarding activities during the previous fiscal 
year:
            ``(A) The total amount of funds obligated for humanitarian 
        relief under this section.
            ``(B) The number of scheduled and completed transportation 
        missions for purposes of providing humanitarian assistance under 
        this section.
            ``(C) A description of any transfer of excess nonlethal 
        supplies of the Department of Defense made available for 
        humanitarian relief purposes under section 2547 of this title. 
        The description shall include the date of the transfer, the 
        entity to whom the transfer is made, and the quantity of items 
        transferred.'';
            (4) by redesignating subsection (f) as subsection (d) and in 
        that subsection striking out ``the Committees on'' and all that 
        follows through ``House of Representatives of the'' and 
        inserting in lieu thereof ``the congressional committees 
        specified in subsection (f) and the Committees on Appropriations 
        of the Senate and House of Representatives of the'';
            (5) by redesignating subsection (g) as subsection (e); and
            (6) by adding at the end the following new subsection:

    ``(f) Congressional Committees.--The congressional committees 
referred to in subsections (c)(1) and (d) are the following:
            ``(1) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            ``(2) The Committee on National Security and the Committee 
        on International Relations of the House of Representatives.''.

SEC. 1313. LANDMINE CLEARANCE PROGRAM.

    (a) Inclusion in General Humanitarian Assistance Program.--
Subsection (e) of section 401 of title 10, United States Code, is 
amended--

[[Page 110 STAT. 475]]

            (1) by striking out ``means--'' and inserting in lieu 
        thereof ``means:'';
            (2) by revising the first word in each of paragraphs (1) 
        through (4) so that the first letter of such word is upper case;
            (3) by striking out the semicolon at the end of paragraphs 
        (1) and (2) and inserting in lieu thereof a period;
            (4) by striking out ``; and'' at the end of paragraph (3) 
        and inserting in lieu thereof a period; and
            (5) by adding at the end the following new paragraph:
            ``(5) Detection and clearance of landmines, including 
        activities relating to the furnishing of education, training, 
        and technical assistance with respect to the detection and 
        clearance of landmines.''.

    (b) Limitation on Landmine Assistance by Members of Armed Forces.--
Subsection (a) of such section is amended by adding at the end the 
following new paragraph:
    ``(4) The Secretary of Defense shall ensure that no member of the 
Armed Forces, while providing assistance under this section that is 
described in subsection (e)(5)--
            ``(A) engages in the physical detection, lifting, or 
        destroying of landmines (unless the member does so for the 
        concurrent purpose of supporting a United States military 
        operation); or
            ``(B) provides such assistance as part of a military 
        operation that does not involve the Armed Forces.''.

    (c) Repeal.--Section 1413 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2913; 10 U.S.C. 401 
note) is repealed.

            Subtitle C--Arms Exports and Military Assistance

SEC. 1321. DEFENSE EXPORT LOAN GUARANTEES.

    (a) Establishment of Program.--(1) Chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new 
subchapter:

             ``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

``Sec.
``2540. Establishment of loan guarantee program.
``2540a. Transferability.
``2540b. Limitations.
``2540c. Fees charged and collected.
``2540d. Definitions.

``Sec. 2540. Establishment of loan guarantee program

    ``(a) Establishment.--In order to meet the national security 
objectives in section 2501(a) of this title, the Secretary of Defense 
shall establish a program under which the Secretary may issue guarantees 
assuring a lender against losses of principal or interest, or both 
principal and interest, arising out of the financing of the sale or 
long-term lease of defense articles, defense services, or design and 
construction services to a country referred to in subsection (b).
    ``(b) Covered Countries.--The authority under subsection (a) applies 
with respect to the following countries:

[[Page 110 STAT. 476]]

            ``(1) A member nation of the North Atlantic Treaty 
        Organization (NATO).
            ``(2) A country designated as of March 31, 1995, as a major 
        non-NATO ally pursuant to section 2350a(i)(3) of this title.
            ``(3) A country in Central Europe that, as determined by the 
        Secretary of State--
                    ``(A) has changed its form of national government 
                from a nondemocratic form of government to a democratic 
                form of government since October 1, 1989; or
                    ``(B) is in the process of changing its form of 
                national government from a nondemocratic form of 
                government to a democratic form of government.
            ``(4) A noncommunist country that was a member nation of the 
        Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.

    ``(c) Authority Subject to Provisions of Appropriations.--The 
Secretary may guarantee a loan under this subchapter only to such extent 
or in such amounts as may be provided in advance in appropriations Acts.

``Sec. 2540a. Transferability

    ``A guarantee issued under this subchapter shall be fully and freely 
transferable.

``Sec. 2540b. Limitations

    ``(a) Terms and Conditions of Loan Guarantees.--In issuing a 
guarantee under this subchapter for a medium-term or long-term loan, the 
Secretary may not offer terms and conditions more beneficial than those 
that would be provided to the recipient by the Export-Import Bank of the 
United States under similar circumstances in conjunction with the 
provision of guarantees for nondefense articles and services.
    ``(b) Losses Arising From Fraud or Misrepresentation.--No payment 
may be made under a guarantee issued under this subchapter for a loss 
arising out of fraud or misrepresentation for which the party seeking 
payment is responsible.
    ``(c) No Right of Acceleration.--The Secretary of Defense may not 
accelerate any guaranteed loan or increment, and may not pay any amount, 
in respect of a guarantee issued under this subchapter, other than in 
accordance with the original payment terms of the loan.

``Sec. 2540c. Fees charged and collected

    ``(a) Exposure Fees.--The Secretary of Defense shall charge a fee 
(known as `exposure fee') for each guarantee issued under this 
subchapter.
    ``(b) Amount of Exposure Fee.--To the extent that the cost of the 
loan guarantees under this subchapter is not otherwise provided for in 
appropriations Acts, the fee imposed under subsection (a) with respect 
to a loan guarantee shall be fixed in an amount that is sufficient to 
meet potential liabilities of the United States under the loan 
guarantee.
    ``(c) Payment Terms.--The fee under subsection (a) for each 
guarantee shall become due as the guarantee is issued. In the case of a 
guarantee for a loan which is disbursed incrementally, and for which the 
guarantee is correspondingly issued incrementally

[[Page 110 STAT. 477]]

as portions of the loan are disbursed, the fee shall be paid 
incrementally in proportion to the amount of the guarantee that is 
issued.
    ``(d) Administrative Fees.--The Secretary of Defense shall charge a 
fee for each guarantee issued under this subchapter to reflect the 
additional administrative costs of the Department of Defense that are 
directly attributable to the administration of the program under this 
subchapter. Such fees shall be credited to a special account in the 
Treasury. Amounts in the special account shall be available, to the 
extent and in amounts provided in appropriations Acts, for paying the 
costs of administrative expenses of the Department of Defense that are 
attributable to the loan guarantee program under this subchapter.

``Sec. 2540d. Definitions

    ``In this subchapter:
            ``(1) The terms `defense article', `defense services', and 
        `design and construction services' have the meanings given those 
        terms in section 47 of the Arms Export Control Act (22 U.S.C. 
        2794).
            ``(2) The term `cost', with respect to a loan guarantee, has 
        the meaning given that term in section 502 of the Congressional 
        Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).''.

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

``VI. Defense Export Loan Guarantees.............................2540''.

    (b) <<NOTE: President. 10 USC 2540 note.>> Report.--Not later than 
two years after the date of the enactment of this Act, the President 
shall submit to Congress a report on the loan guarantee program 
established pursuant to section 2540 of title 10, United States Code, as 
added by subsection (a). The report shall include--
            (1) an analysis of the costs and benefits of the loan 
        guarantee program; and
            (2) any recommendations for modification of the program that 
        the President considers appropriate, including--
                    (A) any recommended addition to the list of 
                countries for which a guarantee may be issued under the 
                program; and
                    (B) any proposed legislation necessary to authorize 
                a recommended modification.

    (c) First Year Costs.--The Secretary of Defense shall make 
available, from amounts appropriated to the Department of Defense for 
fiscal year 1996 for operations and maintenance, such amounts as may be 
necessary, not to exceed $500,000, for the expenses of the Department of 
Defense during fiscal year 1996 that are directly attributable to the 
administration of the defense export loan guarantee program under 
subchapter VI of chapter 148 of title 10, United States Code, as added 
by subsection (a).
    (d) Replenishment of Operations and Maintenance Accounts for First 
Year Costs.--The Secretary of Defense shall, using funds in the special 
account referred to in section 2540c(d) of title 10, United States Code 
(as added by subsection (b)), replenish operations and maintenance 
accounts for amounts expended from such accounts for expenses referred 
to in subsection (c).

[[Page 110 STAT. 478]]

SEC. 1322. <<NOTE: 50 USC app. 2404 note.>> NATIONAL SECURITY 
                          IMPLICATIONS OF UNITED STATES EXPORT 
                          CONTROL POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) Export controls remain an important element of the 
        national security policy of the United States.
            (2) It is in the national security interest that United 
        States export control policy be effective in preventing the 
        transfer, to potential adversaries or combatants of the United 
        States, of technology that threatens the national security or 
        defense of the United States.
            (3) It is in the national security interest that the United 
        States monitor aggressively the export of militarily critical 
        technology in order to prevent its diversion to potential 
        adversaries or combatants of the United States.
            (4) The Department of Defense relies increasingly on 
        commercial and dual-use technologies, products, and processes to 
        support United States military capabilities and economic 
        strength.
            (5) The maintenance of the military advantage of the United 
        States depends on effective export controls on dual-use items 
        and technologies that are critical to the military capabilities 
        of the Armed Forces.

    (b)  Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary of Defense should evaluate license 
        applications for the export of militarily critical commodities 
        the export of which is controlled for national security reasons 
        if those commodities are to be exported to certain countries of 
        concern;
            (2) the Secretary of Defense should identify the dual-use 
        items and technologies that are critical to the military 
        capabilities of the Armed Forces, including the military use 
        made of such items and technologies;
            (3) upon identification by the Secretary of Defense of the 
        dual-use items and technologies referred to in paragraph (2), 
        the President should ensure effective export controls or use 
        unilateral export controls on dual-use items and technologies 
        that are critical to the military capabilities of the Armed 
        Forces (regardless of the availability of such items or 
        technologies overseas) with respect to the countries that--
                    (A) pose a threat to the national security interests 
                of the United States; and
                    (B) are not members in good standing of bilateral or 
                multilateral agreements to which the United States is a 
                party on the use of such items and technologies; and
            (4) the President, upon recommendation of the Secretary of 
        Defense, should ensure effective controls on the re-export by 
        other countries of dual-use items and technologies that are 
        critical to the military capabilities of the Armed Forces.

    (c) <<NOTE: President.>> Annual Report.--(1) Not later than December 
1 of each year through 1999, the President shall submit to the 
committees specified in paragraph (4) a report on the effect of the 
export control policy of the United States on the national security 
interests of the United States.

    (2) The report shall include the following:
            (A) A list setting forth each country determined by the 
        Secretary of Defense, the intelligence community, and other 
        appropriate agencies to be a rogue nation or potential adversary 
        or combatant of the United States.

[[Page 110 STAT. 479]]

            (B) For each country so listed, a list of--
                    (i) the categories of items that the United States 
                currently prohibits for export to the country;
                    (ii) the categories of items that may be exported 
                from the United States with an individual license, and 
                in such cases, any licensing conditions normally 
                required and the policy grounds used for approvals and 
                denials; and
                    (iii) the categories of items that may be exported 
                under a general license designated ``G-DEST''.
            (C) For each category of items listed under subparagraph 
        (B)--
                    (i) a statement whether a prohibition, control, or 
                licensing requirement on a category of items is imposed 
                pursuant to an international multilateral agreement or 
                is unilateral;
                    (ii) a statement whether a prohibition, control, or 
                licensing requirement on a category of items is imposed 
                by the other members of an international agreement or is 
                unilateral;
                    (iii) when the answer under either clause (i) or 
                clause (ii) is unilateral, a statement concerning the 
                efforts being made to ensure that the prohibition, 
                control, or licensing requirement is made multilateral; 
                and
                    (iv) a statement on what impact, if any, a 
                unilateral prohibition is having, or would have, on 
                preventing the rogue nation or potential adversary from 
                attaining the items in question for military purposes.
            (D) A description of United States policy on sharing 
        satellite imagery that has military significance and a 
        discussion of the criteria for determining the imagery that has 
        that significance.
            (E) A description of the relationship between United States 
        policy on the export of space launch vehicle technology and the 
        Missile Technology Control Regime.
            (F) An assessment of United States efforts to support the 
        inclusion of additional countries in the Missile Technology 
        Control Regime.
            (G) An assessment of the ongoing efforts made by potential 
        participant countries in the Missile Technology Control Regime 
        to meet the guidelines established by the Missile Technology 
        Control Regime.
            (H) A discussion of the history of the space launch vehicle 
        programs of other countries, including a discussion of the 
        military origins and purposes of such programs and the current 
        level of military involvement in such programs.

    (3) The President shall submit the report in unclassified form, but 
may include a classified annex.
    (4) The committees referred to in paragraph (1) are the following:
            (A) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            (B) The Committee on National Security and the Committee on 
        International Relations of the House of Representatives.

    (5) For purposes of this subsection, the term ``Missile Technology 
Control Regime'' means the policy statement announced on April 16, 1987, 
between the United States, the United Kingdom, the Federal Republic of 
Germany, France, Italy, Canada, and Japan to restrict sensitive missile-
relevant transfers based on the Missile Technology Control Regime Annex, 
and any amendment thereto.

[[Page 110 STAT. 480]]

SEC. 1323. <<NOTE: 50 USC app. 2404 note.>> DEPARTMENT OF DEFENSE 
                          REVIEW OF EXPORT LICENSES FOR CERTAIN 
                          BIOLOGICAL PATHOGENS.

    (a) Department of Defense Review.--Any application to the Secretary 
of Commerce for a license for the export of a class 2, class 3, or class 
4 biological pathogen to a country identified to the Secretary under 
subsection (c) as a country that is known or suspected to have a 
biological weapons program shall be referred to the Secretary of Defense 
for review. <<NOTE: Notification.>> The Secretary of Defense shall 
notify the Secretary of Commerce within 15 days after receipt of an 
application under the preceding sentence whether the export of such 
biological pathogen pursuant to the license would be contrary to the 
national security interests of the United States.

    (b) Denial of License if Contrary to National Security Interest.--A 
license described in subsection (a) shall be denied by the Secretary of 
Commerce if it is determined that the export of such biological pathogen 
to that country would be contrary to the national security interests of 
the United States.
    (c) Identification of Countries Known or Suspected To Have a Program 
To Develop Offensive Biological Weapons.--(1) The Secretary of Defense 
shall determine, for the purposes of this section, those countries that 
are known or suspected to have a program to develop offensive biological 
weapons. Upon making such determination, the Secretary shall provide to 
the Secretary of Commerce a list of those countries.
    (2) <<NOTE: Notification.>> The Secretary of Defense shall update 
the list under paragraph (1) on a regular basis. Whenever a country is 
added to or deleted from such list, the Secretary shall notify the 
Secretary of Commerce.

    (3) Determination under this subsection of countries that are known 
or suspected to have a program to develop offensive biological weapons 
shall be made in consultation with the Secretary of State and the 
intelligence community.
    (d) Definition.--For purposes of this section, the term ``class 2, 
class 3, or class 4 biological pathogen'' means any biological pathogen 
that is characterized by the Centers for Disease Control as a class 2, 
class 3, or class 4 biological pathogen.
SEC. 1324.  <<NOTE: 50 USC app. 2404 note.>> ANNUAL REPORTS ON 
                          IMPROVING EXPORT CONTROL MECHANISMS AND 
                          ON MILITARY ASSISTANCE.

    (a) Joint Reports by Secretaries of State and Commerce.--Not later 
than April 1 of each of 1996 and 1997, the Secretary of State and the 
Secretary of Commerce shall submit to Congress a joint report, prepared 
in consultation with the Secretary of Defense, relating to United States 
export-control mechanisms. Each such report shall set forth measures to 
be taken to strengthen United States export-control mechanisms, 
including--
            (1) steps being taken by each Secretary (A) to share on a 
        regular basis the export licensing watchlist of that Secretary's 
        department with the other Secretary, and (B) to incorporate the 
        export licensing watchlist data received from the other 
        Secretary into the watchlist of that Secretary's department;
            (2) steps being taken by each Secretary to incorporate into 
        the watchlist of that Secretary's department similar data from 
        systems maintained by the Department of Defense and the United 
        States Customs Service; and

[[Page 110 STAT. 481]]

            (3) a description of such further measures to be taken to 
        strengthen United States export-control mechanisms as the 
        Secretaries consider to be appropriate.

    (b) Reports by Inspectors General.--(1) Not later than April 1 of 
each of 1996 and 1997, the Inspector General of the Department of State 
and the Inspector General of the Department of Commerce shall each 
submit to Congress a report providing that official's evaluation of the 
effectiveness during the preceding year of the export licensing 
watchlist screening process of that official's department. The reports 
shall be submitted in both a classified and unclassified version.
    (2) Each report of an Inspector General under paragraph (1) shall 
(with respect to that official's department)--
            (A) set forth the number of export licenses granted to 
        parties on the export licensing watchlist;
            (B) set forth the number of end-use checks performed with 
        respect to export licenses granted to parties on the export 
        licensing watchlist the previous year;
            (C) assess the screening process used in granting an export 
        license when an applicant is on the export licensing watchlist; 
        and
            (D) assess the extent to which the export licensing 
        watchlist contains all relevant information and parties required 
        by statute or regulation.

    (c) Annual Military Assistance Report.--The Foreign Assistance Act 
of 1961 is amended by inserting after section 654 (22 U.S.C. 2414) the 
following new section:
``SEC. 655. <<NOTE: 22 USC 2415.>> ANNUAL REPORT ON MILITARY 
                          ASSISTANCE, MILITARY EXPORTS, AND 
                          MILITARY IMPORTS.

    ``(a) <<NOTE: President.>> Report Required.--Not later than February 
1 of each of 1996 and 1997, the President shall transmit to Congress a 
report concerning military assistance authorized or furnished for the 
fiscal year ending the previous September 30.

    ``(b) Information Relating to Military Assistance and Military 
Exports.--Each such report shall show the aggregate dollar value and 
quantity of defense articles (including excess defense articles) and 
defense services, and of military education and training, authorized or 
furnished by the United States to each foreign country and international 
organization. The report shall specify, by category, whether those 
articles and services, and that education and training, were furnished 
by grant under chapter 2 or chapter 5 of part II of this Act or by sale 
under chapter 2 of the Arms Export Control Act or were authorized by 
commercial sale licensed under section 38 of the Arms Export Control 
Act.
    ``(c) Information Relating to Military Imports.--Each such report 
shall also include the total amount of military items of non-United 
States manufacture that were imported into the United States during the 
fiscal year covered by the report. The report shall show the country of 
origin, the type of item being imported, and the total amount of 
items.''.
SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL OF 
                          TRANSFER OF CERTAIN WEAPONS.

    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Defense and the Secretary of Energy shall submit to the 
committees of Congress referred to in subsection (c) of section 1154 of 
the National Defense Authorization Act for

[[Page 110 STAT. 482]]

Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1761) the report 
required under subsection (a) of that section. The Secretary of Defense 
and the Secretary of Energy shall include with the report an explanation 
of the failure of such Secretaries to submit the report in accordance 
with such subsection (a) and with all other previous requirements for 
the submittal of the report.

  Subtitle D--Burdensharing and Other Cooperative Activities Involving 
                             Allies and NATO

SEC. 1331. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

    (a) Authority To Manage Contributions in Local Currency, Etc.--
Subsection (b) of section 2350j of title 10, United States Code, is 
amended to read as follows:

    ``(b) Accounting.--Contributions accepted under subsection (a) which 
are not related to security assistance may be accepted, managed, and 
expended in dollars or in the currency of the host nation (or, in the 
case of a contribution from a regional organization, in the currency in 
which the contribution was provided). Any such contribution shall be 
placed in an account established for such purpose and shall remain 
available until expended for the purposes specified in subsection (c). 
The Secretary of Defense shall establish a separate account for such 
purpose for each country or regional organization from which such 
contributions are accepted under subsection (a).''.
    (b) Conforming Amendment.--Subsection (d) of such section is amended 
by striking out ``credited under subsection (b) to an appropriation 
account of the Department of Defense'' and inserting in lieu thereof 
``placed in an account established under subsection (b)''.
    (c) Technical Amendment.--Such section is further amended--
            (1) in subsection (e)(1), by striking out ``a report to the 
        congressional defense committees'' and inserting in lieu thereof 
        ``to the congressional committees specified in subsection (g) a 
        report''; and
            (2) by adding at the end the following new subsection:

    ``(g) Congressional Committees.--The congressional committees 
referred to in subsection (e)(1) are--
            ``(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.''.
SEC. 1332. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF 
                          RELOCATION WITHIN HOST NATION OF UNITED 
                          STATES ARMED FORCES OVERSEAS.

    (a) In General.--(1) Subchapter II of chapter 138 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

[[Page 110 STAT. 483]]

``Sec. 2350k. Relocation within host nation of elements of armed 
                      forces overseas

    ``(a) Authority To Accept Contributions.--The Secretary of Defense 
may accept contributions from any nation because of or in support of the 
relocation of elements of the armed forces from or to any location 
within that nation. Such contributions may be accepted in dollars or in 
the currency of the host nation. Any such contribution shall be placed 
in an account established for such purpose and shall remain available 
until expended for the purposes specified in subsection (b). The 
Secretary shall establish a separate account for such purpose for each 
country from which such contributions are accepted.
    ``(b) Use of Contributions.--The Secretary may use a contribution 
accepted under subsection (a) only for payment of costs incurred in 
connection with the relocation concerning which the contribution was 
made. Those costs include the following:
            ``(1) Design and construction services, including 
        development and review of statements of work, master plans and 
        designs, acquisition of construction, and supervision and 
        administration of contracts relating thereto.
            ``(2) Transportation and movement services, including 
        packing, unpacking, storage, and transportation.
            ``(3) Communications services, including installation and 
        deinstallation of communications equipment, transmission of 
        messages and data, and rental of transmission capability.
            ``(4) Supply and administration, including acquisition of 
        expendable office supplies, rental of office space, budgeting 
        and accounting services, auditing services, secretarial 
        services, and translation services.
            ``(5) Personnel costs, including salary, allowances and 
        overhead of employees whether full-time or part-time, temporary 
        or permanent (except for military personnel), and travel and 
        temporary duty costs.
            ``(6) All other clearly identifiable expenses directly 
        related to relocation.

    ``(c) Method of Contribution.--Contributions may be accepted in any 
of the following forms:
            ``(1) Irrevocable letter of credit issued by a financial 
        institution acceptable to the Treasurer of the United States.
            ``(2) Drawing rights on a commercial bank account 
        established and funded by the host nation, which account is 
        blocked such that funds deposited cannot be withdrawn except by 
        or with the approval of the United States.
            ``(3) Cash, which shall be deposited in a separate trust 
        fund in the United States Treasury pending expenditure and which 
        shall accrue interest in accordance with section 9702 of title 
        31.

    ``(d) Annual Report to Congress.--Not later than 30 days after the 
end of each fiscal year, the Secretary shall submit to Congress a report 
specifying--
            ``(1) the amount of the contributions accepted by the 
        Secretary during the preceding fiscal year under subsection (a) 
        and the purposes for which the contributions were made; and
            ``(2) the amount of the contributions expended by the 
        Secretary during the preceding fiscal year and the purposes for 
        which the contributions were expended.''.

[[Page 110 STAT. 484]]

    (2) The table of sections at the beginning of subchapter II of 
chapter 138 of such title is amended by adding at the end the following 
new item:

``2350k. Relocation within host nation of elements of armed forces 
           overseas.''.

    (b) <<NOTE: 10 USC 2350k note.>> Effective Date.--Section 2350k of 
title 10, United States Code, as added by subsection (a), shall take 
effect on the date of the enactment of this Act and shall apply to 
contributions for relocation of elements of the Armed Forces in or to 
any nation received on or after such date.
SEC. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED 
                          STATES INSTALLATIONS IN EUROPE.

    Section 1304(a) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2890) is amended--
            (1) by inserting ``(1)'' after ``so that''; and
            (2) by inserting before the period at the end the following: 
        ``, and (2) by September 30, 1997, those nations have assumed 
        42.5 percent of such costs''.
SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END STRENGTH 
                          LIMITATION.

    (a) Exclusion of Members Performing Duties Under Military-To-
Military Contact Program.--Paragraph (3) of section 1002(c) of the 
Department of Defense Authorization Act, 1985 (22 U.S.C. 1928 note) is 
amended to read as follows:
    ``(3) For purposes of this subsection, the following members of the 
Armed Forces are excluded in calculating the end strength level of 
members of the Armed Forces of the United States assigned to permanent 
duty ashore in European member nations of NATO:
            ``(A) Members assigned to permanent duty ashore in Iceland, 
        Greenland, and the Azores.
            ``(B) Members performing duties in Europe for more than 179 
        days under a military-to-military contact program under section 
        168 of title 10, United States Code.''.
SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS WITH 
                          NATO ORGANIZATIONS.

    Section 2350b(e) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``or a NATO 
        organization'' after ``a participant (other than the United 
        States)''; and
            (2) in paragraph (2), by striking out ``a cooperative 
        project'' and inserting in lieu thereof ``such a cooperative 
        project or a NATO organization''.
SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF HAIFA, 
                          ISRAEL.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should promptly seek to undertake such actions as 
are necessary--
            (1) to ensure that suitable port services are available to 
        the Navy at the Port of Haifa, Israel; and
            (2) to ensure the availability to the Navy of suitable 
        services at that port in light of the continuing increase in 
        commercial activities at the port.

    (b) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of the Navy shall submit to Congress a report 
on the availablity of port services for the

[[Page 110 STAT. 485]]

Navy in the eastern Mediterranean Sea region. The report shall specify--
            (1) the services required by the Navy when calling at the 
        port of Haifa, Israel; and
            (2) the availability of those services at ports elsewhere in 
        the region.

                        Subtitle E--Other Matters

SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST 
                          COUNTRIES.

    (a) Prohibition.--Subchapter I of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 2249a. Prohibition on providing financial assistance to 
                      terrorist countries

    ``(a) Prohibition.--Funds available to the Department of Defense may 
not be obligated or expended to provide financial assistance to--
            ``(1) any country with respect to which the Secretary of 
        State has made a determination under section 6(j)(1)(A) of the 
        Export Administration Act of 1979 (50 App. 2405(j));
            ``(2) any country identified in the latest report submitted 
        to Congress under section 140 of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f), 
        as providing significant support for international terrorism; or
            ``(3) any other country that, as determined by the 
        President--
                    ``(A) grants sanctuary from prosecution to any 
                individual or group that has committed an act of 
                international terrorism; or
                    ``(B) otherwise supports international terrorism.

    ``(b) Waiver.--(1) The President may waive the application of 
subsection (a) to a country if the President determines--
            ``(A) that it is in the national security interests of the 
        United States to do so; or
            ``(B) that the waiver should be granted for humanitarian 
        reasons.

    ``(2) <<NOTE: President.>> The President shall--
            ``(A) <<NOTE: Notification.>> notify the Committee on Armed 
        Services and the Committee on Foreign Relations of the Senate 
        and the Committee on National Security and the Committee on 
        International Relations of the House of Representatives at least 
        15 days before the waiver takes effect; and
            ``(B) <<NOTE: Federal Register, publication.>> publish a 
        notice of the waiver in the Federal Register.

    ``(c) Definition.--In this section, the term `international 
terrorism' has the meaning given that term in section 140(d)
of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 
(22 U.S.C. 2656f(d)).''.

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

``2249a. Prohibition on providing financial assistance to terrorist 
           countries.''.

[[Page 110 STAT. 486]]

SEC. 1342. <<NOTE: 18 USC 3181 note.>> JUDICIAL ASSISTANCE TO THE 
                          INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA 
                          AND TO THE INTERNATIONAL TRIBUNAL FOR 
                          RWANDA.

    (a) Surrender of Persons.--
            (1) Application of united states extradition laws.--Except 
        as provided in paragraphs (2) and (3), the provisions of chapter 
        209 of title 18, United States Code, relating to the extradition 
        of persons to a foreign country pursuant to a treaty or 
        convention for extradition between the United States and a 
        foreign government, shall apply in the same manner and extent to 
        the surrender of persons, including United States citizens, to--
                    (A) the International Tribunal for Yugoslavia, 
                pursuant to the Agreement Between the United States and 
                the International Tribunal for Yugoslavia; and
                    (B) the International Tribunal for Rwanda, pursuant 
                to the Agreement Between the United States and the 
                International Tribunal for Rwanda.
            (2) Evidence on hearings.--For purposes of applying section 
        3190 of title 18, United States Code, in accordance with 
        paragraph (1), the certification referred to in that section may 
        be made by the principal diplomatic or consular officer of the 
        United States resident in such foreign countries where the 
        International Tribunal for Yugoslavia or the International 
        Tribunal for Rwanda may be permanently or temporarily situated.
            (3) Payment of fees and costs.--(A) The provisions of the 
        Agreement Between the United States and the International 
        Tribunal for Yugoslavia and of the Agreement Between the United 
        States and the International Tribunal for Rwanda shall apply in 
        lieu of the provisions of section 3195 of title 18, United 
        States Code, with respect to the payment of expenses arising 
        from the surrender by the United States of a person to the 
        International Tribunal for Yugoslavia or the International 
        Tribunal for Rwanda, respectively, or from any proceedings in 
        the United States relating to such surrender.
            (B) The authority of subparagraph (A) may be exercised only 
        to the extent and in the amounts provided in advance in 
        appropriations Acts.
            (4) Nonapplicability of the federal rules.--The Federal 
        Rules of Evidence and the Federal Rules of Criminal Procedure do 
        not apply to proceedings for the surrender of persons to the 
        International Tribunal for Yugoslavia or the International 
        Tribunal for Rwanda.

    (b) Assistance to Foreign and International Tribunals and to 
Litigants Before Such Tribunals.--Section 1782(a) of title 28, United 
States Code, is amended by inserting in the first sentence after 
``foreign or international tribunal'' the following: ``, including 
criminal investigations conducted before formal accusation''.
    (c) Definitions.--For purposes of this section:
            (1) International tribunal for yugoslavia.--The term 
        ``International Tribunal for Yugoslavia'' means the 
        International Tribunal for the Prosecution of Persons 
        Responsible for Serious Violations of International Humanitarian 
        Law in the Territory of the Former Yugoslavia, as established by

[[Page 110 STAT. 487]]

        United Nations Security Council Resolution 827 of May 25, 1993.
            (2) International tribunal for rwanda.--The term 
        ``International Tribunal for Rwanda'' means the International 
        Tribunal for the Prosecution of Persons Responsible for Genocide 
        and Other Serious Violations of International Humanitarian Law 
        Committed in the Territory of Rwanda and Rwandan Citizens 
        Responsible for Genocide and Other Such Violations Committed in 
        the Territory of Neighboring States, as established by United 
        Nations Security Council Resolution 955 of November 8, 1994.
            (3) Agreement between the united states and the 
        international tribunal for yugoslavia.--The term ``Agreement 
        Between the United States and the International Tribunal for 
        Yugoslavia'' means the Agreement on Surrender of Persons Between 
        the Government of the United States and the International 
        Tribunal for the Prosecution of Persons Responsible for Serious 
        Violations of International Law in the Territory of the Former 
        Yugoslavia, signed at The Hague, October 5, 1994.
            (4) Agreement between the united states and the 
        international tribunal for rwanda.--The term ``Agreement between 
        the United States and the International Tribunal for Rwanda'' 
        means the Agreement on Surrender of Persons Between the 
        Government of the United States and the International Tribunal 
        for the Prosecution of Persons Responsible for Genocide and 
        Other Serious Violations of International Humanitarian Law 
        Committed in the Territory of Rwanda and Rwandan Citizens 
        Responsible for Genocide and Other Such Violations Committed in 
        the Territory of Neighboring States, signed at The Hague, 
        January 24, 1995.
SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-PEOPLE'S 
                          REPUBLIC OF CHINA JOINT DEFENSE 
                          CONVERSION COMMISSION.

    (a) Reports Required.--The Secretary of Defense shall submit to 
Congress a semiannual report on the United States-People's Republic of 
China Joint Defense Conversion Commission. Each such report shall 
include the following:
            (1) A description of the extent to which the activities 
        conducted in, through, or as a result of the Commission could 
        have directly or indirectly assisted, or may directly or 
        indirectly assist, the military modernization efforts of the 
        People's Republic of China.
            (2) A discussion of the activities and operations of the 
        Commission, including--
                    (A) United States funding;
                    (B) a listing of participating United States 
                officials;
                    (C) specification of meeting dates and locations 
                (prospective and retrospective);
                    (D) summary of discussions; and
                    (E) copies of any agreements reached.
            (3) A discussion of the relationship between the ``defense 
        conversion'' activities of the People's Republic of China and 
        its defense modernization efforts.
            (4) A discussion of the extent to which United States 
        business activities pursued, or proposed to be pursued, under 
        the

[[Page 110 STAT. 488]]

        imprimatur of the Commission, or the importation of western 
        technology in general, contributes to the modernization of 
        China's military industrial base, including any steps taken by 
        the United States or by United States commercial entities to 
        safeguard the technology or intellectual property rights 
        associated with any materials or information transferred.
            (5) An assessment of the benefits derived by the United 
        States from its participation in the Commission, including 
        whether or to what extent United States participation in the 
        Commission has resulted or will result in the following:
                    (A) Increased transparency in the current and 
                projected military budget and doctrine of the People's 
                Republic of China.
                    (B) Improved behavior and cooperation by the 
                People's Republic of China in the areas of missile and 
                nuclear proliferation.
                    (C) Increased transparency in the plans of the 
                People's Republic of China's for nuclear and missile 
                force modernization and testing.
            (6) Efforts undertaken by the Secretary of Defense to--
                    (A) establish a list of enterprises controlled by 
                the People's Liberation Army, including those which have 
                been successfully converted to produce products solely 
                for civilian use; and
                    (B) provide estimates of the total revenues of those 
                enterprises.
            (7) A description of current or proposed mechanisms for 
        improving the ability of the United States to track the flow of 
        revenues from the enterprises specified on the list established 
        under paragraph (6)(A).

    (b) Submittal of Reports.--A report shall be submitted under 
subsection (a) not later than August 1 of each year with respect to the 
first six months of that year and shall be submitted not later than 
February 1 of each year with respect to the last six months of the 
preceding year. The first report under such subsection shall be 
submitted not less than 60 days after the date of the enactment of this 
Act and shall apply with respect to the six-month period preceding the 
date of the enactment of this Act.
    (c) Final Report Upon Termination of Commission.--Upon the 
termination of the United States-People's Republic of China Joint 
Defense Conversion Commission, the Secretary of Defense shall submit a 
final report under this section covering the period from the end of the 
period covered by the last such report through the termination of the 
Commission, and subsection (a) shall cease to apply after the submission 
of such report.

                     TITLE XIV--ARMS CONTROL MATTERS

SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF 
                          LANDMINE EXPORT MORATORIUM.

    Section 1423(d) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1832) is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
            (2) in subparagraph (C), as so redesignated, by striking out 
        ``by remote control or'';

[[Page 110 STAT. 489]]

            (3) by inserting ``(1)'' before ``For purposes of''; and
            (4) by adding at the end the following new paragraph:

    ``(2) The term does not include command detonated antipersonnel land 
mines (such as the M18A1 `Claymore' mine).''.
SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES OF 
                          ANTIPERSONNEL LANDMINES.

    Not later than April 30 of each of 1996, 1997, and 1998, the 
Chairman of the Joint Chiefs of Staff shall submit to the congressional 
defense committees a report on the projected effects of a moratorium on 
the defensive use of antipersonnel mines and antitank mines by the Armed 
Forces. The report shall include a discussion of the following matters:
            (1) The extent to which current doctrine and practices of 
        the Armed Forces on the defensive use of antipersonnel mines and 
        antitank mines adhere to applicable international law.
            (2) The effects that a moratorium would have on the 
        defensive use of the current United States inventory of remotely 
        delivered, self-destructing antitank systems, antipersonnel 
        mines, and antitank mines.
            (3) The reliability of the self-destructing antipersonnel 
        mines and self-destructing antitank mines of the United States.
            (4) The cost of clearing the antipersonnel minefields 
        currently protecting Naval Station Guantanamo Bay, Cuba, and 
        other United States installations.
            (5) The cost of replacing antipersonnel mines in such 
        minefields with substitute systems such as the Claymore mine, 
        and the level of protection that would be afforded by use of 
        such a substitute.
            (6) The extent to which the defensive use of antipersonnel 
        mines and antitank mines by the Armed Forces is a source of 
        civilian casualties around the world, and the extent to which 
        the United States, and the Department of Defense particularly, 
        contributes to alleviating the illegal and indiscriminate use of 
        such munitions.
            (7) The extent to which the threat to the security of United 
        States forces during operations other than war and combat 
        operations would increase as a result of such a moratorium.
SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION 
                          AUTHORITIES.

    (a) One-Year Extension of Program.--Section 1505 of the Weapons of 
Mass Destruction Control Act of 1992 (title XV of Public Law 102-484; 22 
U.S.C. 5859a) is amended--
            (1) in subsection (a), by striking out ``during fiscal years 
        1994 and 1995'';
            (2) in subsection (e)(1), by striking out ``fiscal years 
        1994 and 1995'' and inserting in lieu thereof ``a fiscal year 
        during which the authority of the Secretary of Defense to 
        provide assistance under this section is in effect''; and
            (3) by adding at the end the following new subsection:

    ``(f) Termination of Authority.--The authority of the Secretary of 
Defense to provide assistance under this section terminates at the close 
of fiscal year 1996.''.
    (b) Program Authorities.--(1) Subsections (b)(2) and (d)(3) of such 
section are amended by striking out ``the On-Site Inspection Agency'' 
and inserting in lieu thereof ``the Department of Defense''.

[[Page 110 STAT. 490]]

    (2) Subsection (c)(3) of such section is amended by striking out 
``will be counted'' and all that follows and inserting in lieu thereof 
``will be counted as discretionary spending in the national defense 
budget function (function 050).''.
    (c) Amount of Assistance.--Subsection (d) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking out ``for fiscal year 1994'' the 
                first place it appears and all that follows through the 
                period at the end of the second sentence and inserting 
                in lieu thereof ``for any fiscal year shall be derived 
                from amounts made available to the Department of Defense 
                for that fiscal year.''; and
                    (B) by striking out ``referred to in this 
                paragraph''; and
            (2) in paragraph (3)--
                    (A) by striking out ``may not exceed'' and all that 
                follows through ``1995''; and
                    (B) by inserting before the period at the end the 
                following: ``, may not exceed $25,000,000 for fiscal 
                year 1994, $20,000,000 for fiscal year 1995, or 
                $15,000,000 for fiscal year 1996''.
SEC. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
                          NUCLEAR DELIVERY SYSTEMS.

    (a) Sense of Congress.--It is the sense of Congress that, unless and 
until the START II Treaty enters into force, the Secretary of Defense 
should not take any action to retire or dismantle, or to prepare to 
retire or dismantle, any of the following strategic nuclear delivery 
systems:
            (1) B-52H bomber aircraft.
            (2) Trident ballistic missile submarines.
            (3) Minuteman III intercontinental ballistic missiles.
            (4) Peacekeeper intercontinental ballistic missiles.

    (b) Limitation on Use of Funds.--Funds available to the Department 
of Defense may not be obligated or expended during fiscal year 1996 for 
retiring or dismantling, or for preparing to retire or dismantle, any of 
the strategic nuclear delivery systems specified in subsection (a).
SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS CONCERNING 
                          TREATY VIOLATIONS.

    (a) Reaffirmation of Prior Findings Concerning the Krasnoyarsk 
Radar.--Congress, noting its previous findings with respect to the large 
phased-array radar of the Soviet Union known as the ``Krasnoyarsk 
radar'' stated in paragraphs (1) through (4) of section 902(a) of the 
National Defense Authorization Act for Fiscal Years 1988 and 1989 
(Public Law 100-180; 101 Stat. 1135) (and reaffirmed in section 1006(a) 
of the National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1543)), hereby reaffirms those findings 
as follows:
            (1) The 1972 Anti-Ballistic Missile Treaty prohibits each 
        party from deploying ballistic missile early warning radars 
        except at locations along the periphery of its national 
        territory and oriented outward.
            (2) The 1972 Anti-Ballistic Missile Treaty prohibits each 
        party from deploying an ABM system to defend its national

[[Page 110 STAT. 491]]

        territory and from providing a base for any such nationwide 
        defense.
            (3) Large phased-array radars were recognized during 
        negotiation of the Anti-Ballistic Missile Treaty as the critical 
        long lead-time element of a nationwide defense against ballistic 
        missiles.
            (4) In 1983 the United States discovered the construction, 
        in the interior of the Soviet Union near the town of 
        Krasnoyarsk, of a large phased-array radar that has subsequently 
        been judged to be for ballistic missile early warning and 
        tracking.

    (b) Further Reference to 1987 Congressional Statements.--Congress 
further notes that in section 902 of the National Defense Authorization 
Act for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 1135) 
Congress also--
            (1) noted that the President had certified that the 
        Krasnoyarsk radar was an unequivocal violation of the 1972 Anti-
        Ballistic Missile Treaty; and
            (2) stated it to be the sense of the Congress that the 
        Soviet Union was in violation of its legal obligation under that 
        treaty.

    (c) Further Reference to 1989 Congressional Statements.--Congress 
further notes that in section 1006(b) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1543) Congress also--
            (1) again noted that in 1987 the President declared that 
        radar to be a clear violation of the 1972 Anti-Ballistic Missile 
        Treaty and noted that on October 23, 1989, the Foreign Minister 
        of the Soviet Union conceded that the Krasnoyarsk radar is a 
        violation of the 1972 Anti-Ballistic Missile Treaty; and
            (2) stated it to be the sense of the Congress that the 
        Soviet Union should dismantle the Krasnoyarsk radar 
        expeditiously and without conditions and that until such radar 
        was completely dismantled it would remain a clear violation of 
        the 1972 Anti-Ballistic Missile Treaty.

    (d) <<NOTE: Y.V. Votintsev.>>  Additional Findings.--Congress also 
finds, with respect to the Krasnoyarsk radar, that retired Soviet 
General Y.V. Votintsev, Director of the Soviet National Air Defense 
Forces from 1967 to 1985, has publicly stated--
            (1) that he was directed by the Chief of the Soviet General 
        staff to locate the large phased-array radar at Krasnoyarsk 
        despite the recognition by Soviet authorities that the location 
        of such a radar at that location would be a clear violation of 
        the 1972 Anti-Ballistic Missile Treaty; and
            (2) <<NOTE: D.F. Ustinov.>> that Marshal D.F. Ustinov, 
        Soviet Minister of Defense, threatened to relieve from duty any 
        Soviet officer who continued to object to the construction of a 
        large-phased array radar at Krasnoyarsk.

    (e) Sense of Congress Concerning Soviet Treaty Violations.--It is 
the sense of Congress that the government of the Soviet Union 
intentionally violated its legal obligations under the 1972 Anti-
Ballistic Missile Treaty in order to advance its national security 
interests.
    (f) Sense of Congress Concerning Compliance by Russia With Arms 
Control Obligations.--In light of subsections (a) through (e), it is the 
sense of Congress that the United States should remain vigilant in 
ensuring compliance by Russia with its

[[Page 110 STAT. 492]]

arms control obligations and should, when pursuing future arms control 
agreements with Russia, bear in mind violations of arms control 
obligations by the Soviet Union.
SEC. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL WEAPONS 
                          CONVENTION AND START II TREATY.

    (a) Findings.--Congress makes the following findings:
            (1) Proliferation of chemical or nuclear weapons materials 
        poses a danger to United States national security, and the 
        threat or use of such materials by terrorists would directly 
        threaten United States citizens at home and abroad.
            (2) Events such as the March 1995 terrorist release of a 
        chemical nerve agent in the Tokyo subway, the threatened use of 
        chemical weapons during the 1991 Persian
Gulf War, and the widespread use of chemical weapons during the Iran-
Iraq War of the 1980's are all potent reminders of the menace posed by 
chemical weapons, of the fact that the threat of chemical weapons is not 
sufficiently addressed, and of the need to outlaw the development, 
production, and possession of chemical weapons.
            (3) <<NOTE: George Bush.>> The Chemical Weapons Convention 
        negotiated and signed by President Bush would make it more 
        difficult for would-be proliferators, including terrorists, to 
        acquire or use chemical weapons, if ratified and fully 
        implemented, as signed, by all signatories.
            (4) <<NOTE: John Shalikashvili.>> United States military 
        authorities, including Chairman of the Joint Chiefs of Staff 
        General John Shalikashvili, have stated that United States 
        military forces will deter and respond to chemical weapons 
        threats with a robust chemical defense and an overwhelming 
        superior conventional response, as demonstrated in the Persian 
        Gulf War, and have testified in support of the ratification of 
        the Chemical Weapons Convention.
            (5) The United States intelligence community has testified 
        that the Convention will provide new and important sources of 
        information, through regular data exchanges and routine and 
        challenge inspections, to improve the ability of the United 
        States to assess the chemical weapons status in countries of 
        concern.
            (6) The Convention has not entered into force for lack of 
        the requisite number of ratifications.
            (7) Russia has signed the Convention, but has not yet 
        ratified it.
            (8) There have been reports by Russian sources of continued 
        Russian production and testing of chemical weapons, including a 
        statement by a spokesman of the Russian Ministry of Defense on 
        December 5, 1994, that ``We cannot say that all chemical weapons 
        production and testing has stopped altogether.''.
            (9) The Convention will impose a legally binding obligation 
        on Russia and other nations that possess chemical weapons and 
        that ratify the Convention to cease offensive chemical weapons 
        activities and to destroy their chemical weapons stockpiles and 
        production facilities.
            (10) The United States must be prepared to exercise fully 
        its rights under the Convention, including the request of 
        challenge inspections when warranted, and to exercise leadership 
        in pursuing punitive measures against violators of the 
        Convention, when warranted.

[[Page 110 STAT. 493]]

            (11) The United States should strongly encourage full 
        implementation at the earliest possible date of the terms and 
        conditions of the United States-Russia bilateral chemical 
        weapons destruction agreement signed in 1990.
            (12) The START II Treaty negotiated and signed by President 
        Bush would help reduce the danger of potential proliferators, 
        including terrorists, acquiring nuclear warheads and materials, 
        and would contribute to United States-Russian bilateral efforts 
        to secure and dismantle nuclear warheads, if ratified and fully 
        implemented as signed by both parties.
            (13) It is in the national security interest of the United 
        States to take effective steps to make it more difficult for 
        proliferators or would-be terrorists to obtain chemical or 
        nuclear materials for use in weapons.
            (14) The President has urged prompt Senate action on, and 
        advice and consent to ratification of, the START II Treaty and 
        the Chemical Weapons Convention.
            (15) The Chairman of the Joint Chiefs of Staff has testified 
        to Congress that ratification and full implementation of both 
        treaties by all parties is in the United States national 
        interest and has strongly urged prompt Senate advice and consent 
        to their ratification.

    (b) Sense of Congress.--It is the sense of Congress that the United 
States, Russia, and all other parties to the START II Treaty and the 
Chemical Weapons Convention should promptly ratify and fully implement, 
as negotiated, both treaties.

SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

    (a) Funding.--Of the amounts appropriated pursuant to authorizations 
in sections 102, 103, 104, 201, and 301, the Secretary of Defense may 
use an amount not to exceed $239,941,000 for implementing arms control 
agreements to which the United States is a party.
    (b) Limitation.--(1) Funds made available pursuant to subsection (a) 
for the costs of implementing an arms control agreement may not (except 
as provided in paragraph (2)) be used to reimburse expenses incurred by 
any other party to the agreement for which (without regard to any 
executive agreement or any policy not part of an arms control 
agreement)--
            (A) the other party is responsible under the terms of the 
        arms control agreement; and
            (B) the United States has no responsibility under the 
        agreement.

    (2) The limitation in paragraph (1) does not apply to a use of funds 
to carry out an arms control expenses reimbursement policy of the United 
States described in subsection (c).
    (c) Covered Arms Control Expenses Reimbursement Policies.--
Subsection (b)(2) applies to a policy of the United States to reimburse 
expenses incurred by another party to an arms control agreement if--
            (1) the policy does not modify any obligation imposed by the 
        arms control agreement;
            (2) the President--
                    (A) issued or approved the policy before the date of 
                the enactment of this Act; or
                    (B) entered into an agreement on the policy with the 
                government of another country or approved an agreement

[[Page 110 STAT. 494]]

                on the policy entered into by an official of the United 
                States and the government of another country; and
            (3) the President has notified the designated congressional 
        committees of the policy or the policy agreement (as the case 
        may be), in writing, at least 30 days before the date on which 
        the President issued or approved the policy or has entered into 
        or approved the policy agreement.

    (d) Definitions.--For the purposes of this section:
            (1) The term ``arms control agreement'' means an arms 
        control treaty or other form of international arms control 
        agreement.
            (2) The term ``executive agreement'' means an international 
        agreement entered into by the President that is not authorized 
        by law or entered into as a Treaty to which the Senate has given 
        its advice and consent to ratification.
            (3) The term ``designated congressional committees'' means 
        the following:
                    (A) The Committee on Foreign Relations, the 
                Committee on Armed Services, and the Committee on 
                Appropriations of the Senate.
                    (B) The Committee on International Relations, the 
                Committee on National Security, and the Committee on 
                Appropriations of the House of Representatives.

SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

    (a) Sanctions Against Transfers of Persons.--Section 1604(a) of the 
Iran-Iraq Arms Non-Proliferation Act of 1992 (title XVI of Public Law 
102-484; 50 U.S.C. 1701 note) is amended by inserting ``to acquire 
chemical, biological, or nuclear weapons or'' before ``to acquire''.
    (b) Sanctions Against Transfers of Foreign Countries.--Section 
1605(a) of such Act <<NOTE: 50 USC 1701 note.>>  is amended by inserting 
``to acquire chemical, biological, or nuclear weapons or'' before ``to 
acquire''.

    (c) Clarification of United States Assistance.--Subparagraph (A) of 
section 1608(7) of such Act <<NOTE: 50 USC 1701 note.>>  is amended to 
read as follows:
                    ``(A) any assistance under the Foreign Assistance 
                Act of 1961 (22 U.S.C. 2151 et seq.), other than urgent 
                humanitarian assistance or medicine;''.

    (d) Notification of Certain Waivers Under MTCR Procedures.--Section 
73(e)(2) of the Arms Export Control Act (22 U.S.C. 2797b(e)(2)) is 
amended--
            (1) by striking out ``the Congress'' and inserting in lieu 
        thereof ``the Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate and the Committee on National 
        Security and the Committee on International Relations of the 
        House of Representatives''; and
            (2) by striking out ``20 working days'' and inserting in 
        lieu thereof ``45 working days''.

[[Page 110 STAT. 495]]

               TITLE XV--TECHNICAL AND CLERICAL AMENDMENTS

SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL 
                          MANAGEMENT ACT.

    (a) Public Law 103-337.--The Reserve Officer Personnel Management 
Act (title XVI of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337)) is amended as follows:
            (1) Section 1624 (108 Stat. 2961) <<NOTE: 10 USC 620.>>  is 
        amended--
                    (A) by striking out ``641'' and all that follows 
                through ``(2)'' and inserting in lieu thereof ``620 is 
                amended''; and
                    (B) by redesignating as subsection (d) the 
                subsection added by the amendment made by that section.
            (2) Section 1625 (108 Stat. 2962) <<NOTE: 10 USC 12320.>>  
        is amended by striking out ``Section 689'' and inserting in lieu 
        thereof ``Section 12320''.
            (3) Section 1626(1) (108 Stat. 2962) <<NOTE: 10 USC 741.>>  
        is amended by striking out ``(W-5)'' in the second quoted matter 
        therein and inserting in lieu thereof ``, W-5,''.
            (4) Section 1627 (108 Stat. 2962) <<NOTE: 10 USC 12645.>>  
        is amended by striking out ``Section 1005(b)'' and inserting in 
        lieu thereof ``Section 12645(b)''.
            (5) Section 1631 (108 Stat. 2964) is amended--
                    (A) <<NOTE: 10 USC 12102.>>  in subsection (a), by 
                striking out ``Section 510'' and inserting in lieu 
                thereof ``Section 12102''; and
                    (B) <<NOTE: 10 USC 12201.>>  in subsection (b), by 
                striking out ``Section 591'' and inserting in lieu 
                thereof ``Section 12201''.
            (6) Section 1632 (108 Stat. 2965) <<NOTE: 10 USC 12203.>>  
        is amended by striking out ``Section 593(a)'' and inserting in 
        lieu thereof ``Section 12203(a)''.
            (7) Section 1635(a) (108 Stat. 2968) <<NOTE: 10 USC 3853 
        note.>>  is amended by striking out ``section 1291'' and 
        inserting in lieu thereof ``section 1691(b)''.
            (8) Section 1671 (108 Stat. 3013) is amended--
                    (A) in subsection (b)(3), by striking out ``512, and 
                517'' and inserting in lieu thereof ``and 512''; and
                    (B) <<NOTE: 10 USC 113.>>  in subsection (c)(2), by 
                striking out the comma after ``861'' in the first quoted 
                matter therein.
            (9) Section 1684(b) (108 Stat. 3024) <<NOTE: 10 USC 14310 
        note.>>  is amended by striking out ``section 14110(d)'' and 
        inserting in lieu thereof ``section 14111(c)''.

    (b) Subtitle E of Title 10.--Subtitle E of title 10, United States 
Code, is amended as follows:
            (1) The tables of chapters preceding part I and at the 
        beginning of part IV are amended by striking out ``Repayments'' 
        in the item relating to chapter 1609 and inserting in lieu 
        thereof ``Repayment Programs''.
            (2)(A) The heading for section 10103 is amended to read as 
        follows:

``Sec. 10103. Basic policy for order into Federal service''.

            (B) The item relating to section 10103 in the table of 
        sections at the beginning of chapter 1003 is amended to read as 
        follows:

``10103. Basic policy for order into Federal service.''.

[[Page 110 STAT. 496]]

            (3) The table of sections at the beginning of chapter 1005 
        is amended by striking out the third word in the item relating 
        to section 10142.
            (4) The table of sections at the beginning of chapter 1007 
        is amended--
                    (A) by striking out the third word in the item 
                relating to section 10205; and
                    (B) by capitalizing the initial letter of the sixth 
                word in the item relating to section 10211.
            (5) The table of sections at the beginning of chapter 1011 
        is amended by inserting ``Sec.'' at the top of the column of 
        section numbers.
            (6) Section 10507 is amended--
                    (A) by striking out ``section 124402(b)'' and 
                inserting in lieu thereof ``section 12402(b)''; and
                    (B) by striking out ``Air Forces'' and inserting in 
                lieu thereof ``Air Force''.
            (7)(A) Section 10508 is repealed.
            (B) The table of sections at the beginning of chapter 1011 
        is amended by striking out the item relating to section 10508.
            (8) Section 10542 is amended by striking out subsection (d).
            (9) Section 12004(a) is amended by striking out ``active-
        status'' and inserting in lieu thereof ``active status''.
            (10) Section 12012 is amended by inserting ``the'' in the 
        section heading before the penultimate word.
            (11)(A) The heading for section 12201 is amended to read as 
        follows:

``Sec. 12201. Reserve officers: qualifications for appointment''.

            (B) The item relating to that section in the table of 
        sections at the beginning of chapter 1205 is amended to read as 
        follows:

``12201. Reserve officers: qualifications for appointment.''.

            (12)(A) The heading for section 12209 is amended to read as 
        follows:

``Sec. 12209. Officer candidates: enlisted Reserves''.

            (B) The heading for section 12210 is amended to read as 
        follows:

``Sec. 12210. Attending Physician to the Congress: reserve grade while 
                        so serving''.

            (13)(A) The headings for sections 12211, 12212, 12213, and 
        12214 are amended by inserting ``the'' after ``National Guard 
        of''
            (B) The table of sections at the beginning of chapter 1205 
        is amended by inserting ``the'' in the items relating to 
        sections 12211, 12212, 12213, and 12214 after ``National Guard 
        of''.
            (14) Section 12213(a) is amended by striking out ``section 
        593'' and inserting in lieu thereof ``section 12203''.
            (15) The table of sections at the beginning of chapter 1207 
        is amended by striking out ``promotions'' in the item relating 
        to section 12243 and inserting in lieu thereof ``promotion''.
            (16) The table of sections at the beginning of chapter 1209 
        is amended--

[[Page 110 STAT. 497]]

                    (A) in the item relating to section 12304, by 
                striking out the colon and inserting in lieu thereof a 
                semicolon; and
                    (B) in the item relating to section 12308, by 
                striking out the second, third, and fourth words.
            (17) Section 12307 is amended by striking out ``Ready 
        Reserve'' in the second sentence and inserting in lieu thereof 
        ``Retired Reserve''.
            (18)(A) The table of sections at the beginning of chapter 
        1211 is amended by inserting ``the'' in the items relating to 
        sections 12401, 12402, 12403, and 12404 after ``Army and Air 
        National Guard of''.
            (B) The headings for sections 12402, 12403, and 12404 are 
        amended by inserting ``the'' after ``Army and Air National Guard 
        of''
            (19) Section 12407(b) is amended--
                    (A) by striking out ``of those jurisdictions'' and 
                inserting in lieu thereof ``State''; and
                    (B) by striking out ``jurisdictions'' and inserting 
                in lieu thereof ``States''.
            (20) Section 12731(f) is amended by striking out ``the date 
        of the enactment of this subsection'' and inserting in lieu 
        thereof ``October 5, 1994,''.
            (21) Section 12731a(c)(3) is amended by inserting a comma 
        after ``Defense Conversion''.
            (22) Section 14003 is amended by inserting ``lists'' in the 
        section heading immediately before the colon.
            (23) The table of sections at the beginning of chapter 1403 
        is amended by striking out ``selection board'' in the item 
        relating to section 14105 and inserting in lieu thereof 
        ``promotion board''.
            (24) The table of sections at the beginning of chapter 1405 
        is amended--
                    (A) in the item relating to section 14307, by 
                striking out ``Numbers'' and inserting in lieu thereof 
                ``Number'';
                    (B) in the item relating to section 14309, by 
                striking out the colon and inserting in lieu thereof a 
                semicolon; and
                    (C) in the item relating to section 14314, by 
                capitalizing the initial letter of the antepenultimate 
                word.
            (25) Section 14315(a) is amended by striking out ``a Reserve 
        officer'' and inserting in lieu thereof ``a reserve officer''.
            (26) Section 14317(e) is amended--
                    (A) by inserting ``Officers Ordered to Active Duty 
                in Time of War or National Emergency.--'' after ``(e)''; 
                and
                    (B) by striking out ``section 10213 or 644'' and 
                inserting in lieu thereof ``section 123 or 10213''.
            (27) The table of sections at the beginning of chapter 1407 
        is amended--
                    (A) in the item relating to section 14506, by 
                inserting ``reserve'' after ``Marine Corps and''; and
                    (B) in the item relating to section 14507, by 
                inserting ``reserve'' after ``Removal from the''; and
                    (C) in the item relating to section 14509, by 
                inserting ``in grades'' after ``reserve officers''.

[[Page 110 STAT. 498]]

            (28) Section 14501(a) is amended by inserting ``Officers 
        Below the Grade of Colonel or Navy Captain.--'' after ``(a)''.
            (29) The heading for section 14506 is amended by inserting a 
        comma after ``Air Force''.
            (30) Section 14508 is amended by striking out ``this'' after 
        ``from an active status under'' in subsections (c) and (d).
            (31) Section 14515 is amended by striking out ``inactive 
        status'' and inserting in lieu thereof ``inactive-status''.
            (32) Section 14903(b) is amended by striking out ``chapter'' 
        and inserting in lieu thereof ``title''.
            (33) The table of sections at the beginning of chapter 1606 
        is amended in the item relating to section 16133 by striking out 
        ``limitations'' and inserting in lieu thereof ``limitation''.
            (34) Section 16132(c) is amended by striking out ``section'' 
        and inserting in lieu thereof ``sections''.
            (35) Section 16135(b)(1)(A) is amended by striking out 
        ``section 2131(a)'' and inserting in lieu thereof ``section 
        16131(a)''.
            (36) Section 18236(b)(1) is amended by striking out 
        ``section 2233(e)'' and inserting in lieu thereof ``section 
        18233(e)''.
            (37) Section 18237 is amended--
                    (A) in subsection (a), by striking out ``section 
                2233(a)(1)'' and inserting in lieu thereof ``section 
                18233(a)(1)''; and
                    (B) in subsection (b), by striking out ``section 
                2233(a)'' and inserting in lieu thereof ``section 
                18233(a)''.

    (c) <<NOTE: Effective date. 10 USC 101 note.>>  Other Provisions of 
Title 10.--Effective as of December 1, 1994 (except as otherwise 
expressly provided), and as if included as amendments made by the 
Reserve Officer Personnel Management Act (title XVI of Public Law 103-
360) as originally enacted, title 10, United States Code, is amended as 
follows:
            (1) Section 101(d)(6)(B)(i) is amended by striking out 
        ``section 175'' and inserting in lieu thereof ``section 10301''.
            (2) Section 114(b) is amended by striking out ``chapter 
        133'' and inserting in lieu thereof ``chapter 1803''.
            (3) Section 115(d) is amended--
                    (A) in paragraph (1), by striking out ``section 
                673'' and inserting in lieu thereof ``section 12302'';
                    (B) in paragraph (2), by striking out ``section 
                673b'' and inserting in lieu thereof ``section 12304''; 
                and
                    (C) in paragraph (3), by striking out ``section 3500 
                or 8500'' and inserting in lieu thereof ``section 
                12406''.
            (4) Section 123(a) is amended--
                    (A) by striking out ``281, 592, 1002, 1005, 1006, 
                1007, 1374, 3217, 3218, 3219, 3220, 3352(a) (last 
                sentence),'', ``5414, 5457, 5458, 5506,'', and ``8217, 
                8218, 8219,''; and
                    (B) by striking out ``and 8855'' and inserting in 
                lieu thereof ``8855, 10214, 12003, 12004, 12005, 12007, 
                12202, 12213(a) (second sentence), 12642, 12645, 12646, 
                12647, 12771, 12772, and 12773''.
            (5) Section 582(1) is amended by striking out ``section 
        672(d)'' in subparagraph (B) and ``section 673b'' in 
        subparagraph (D) and inserting in lieu thereof ``section 
        12301(d)'' and ``section 12304'', respectively.
            (6) Section 641(1)(B) is amended by striking out ``10501'' 
        and inserting in lieu thereof ``10502, 10505, 10506(a), 
        10506(b), 10507''.

[[Page 110 STAT. 499]]

            (7) The table of sections at the beginning of chapter 39 is 
        amended by striking out the items relating to sections 687 and 
        690.
            (8) Sections 1053(a)(1) and 1064 are amended by striking out 
        ``chapter 67'' and inserting in lieu thereof ``chapter 1223''.
            (9) Section 1063(a)(1) is amended by striking out ``section 
        1332(a)(2)'' and inserting in lieu thereof ``section 
        12732(a)(2)''.
            (10) Section 1074b(b)(2) is amended by striking out 
        ``section 673c'' and inserting in lieu thereof ``section 
        12305''.
            (11) Section 1076(b)(2)(A) is amended by striking out 
        ``before the effective date of the Reserve Officer Personnel 
        Management Act'' and inserting in lieu thereof ``before December 
        1, 1994''.
            (12) Section 1176(b) is amended by striking out ``section 
        1332'' in the matter preceding paragraph (1) and in paragraphs 
        (1) and (2) and inserting in lieu thereof ``section 12732''.
            (13) Section 1208(b) is amended by striking out ``section 
        1333'' and inserting in lieu thereof ``section 12733''.
            (14) Section 1209 is amended by striking out ``section 
        1332'', ``section 1335'', and ``chapter 71'' and inserting in 
        lieu thereof ``section 12732'', ``section 12735'', and ``section 
        12739'', respectively.
            (15) Section 1407 is amended--
                    (A) in subsection (c)(1) and (d)(1), by striking out 
                ``section 1