[104th Congress Public Law 201]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ201.104]


[[Page 2421]]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

[[Page 110 STAT. 2422]]

Public Law 104-201
104th Congress

                                 An Act


 
To authorize appropriations for fiscal year 1997 for military activities 
                                 of the 
   Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
        for such fiscal year for the Armed Forces, and for other 
           purposes. <<NOTE: Sept. 23, 1996 -  [H.R. 3230]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in <<NOTE: National Defense Authorization Act 
for Fiscal Year 1997.>>  Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 1997''.

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

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

    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
                    helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.


[[Page 110 STAT. 2423]]



                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
                    aircraft program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the Reserve 
                    components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
                    and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
                    Manufacturing Support Initiative.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
                    aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
                    Optic 
                    Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.
Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
                    explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
                    Agency relating to chemical and biological warfare 
                    defense technology.
Sec. 229. Certification of capability of United States to prevent 
                    illegal importation of nuclear, biological, or 
                    chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
                    1997.
Sec. 242. Certification of capability of United States to defend against 
                    single 
                    ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
                    program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
                    of establishment of National Missile Defense Joint 
                    Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
                    Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
                    the award of certain contracts to colleges and 
                    universities.
Sec. 266. Pilot program for transfer of defense technology information 
                    to private industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
                    games.

[[Page 110 STAT. 2424]]

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

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
                    to engage in defense-related production and 
                    services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
                    contractor reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
                    for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for defense 
                    environmental restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
                    emissions during shipyard blasting and coating 
                    operations.
Sec. 327. Agreements for services of other agencies in support of 
                    environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
                    regarding remedial investigations and feasibility 
                    studies at certain installations to be closed under 
                    the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
                    environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
                    National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
                    purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
                    completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
                    services to promote efficient operation and 
                    management of exchanges and morale, welfare, and 
                    recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
                    resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
                    printing and 
                    duplication services.
Sec. 352. Reporting requirements under demonstration project for 
                    purchase of fire, security, police, public works, 
                    and utility services from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
                    functions.
Sec. 362. Training of members of the uniformed services at non-
                    Government facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
                    working-capital funds and effect of failure to 
                    produce an approved plan.

[[Page 110 STAT. 2425]]

Sec. 364. Increase in capital asset threshold under Defense Business 
                    Operations Fund.
Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
                    President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
                    National 
                    Capital Region.
Sec. 370. Administration of midshipmen's store and other naval academy 
                    support activities as nonappropriated fund 
                    instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
                    students at Foreign Language Institute of the 
                    Defense Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
                    dependents of members of the Armed Forces and 
                    Department of Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
                    Service 
                    Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
                    Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
                    contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
                    in grades of major, lieutenant colonel, and colonel 
                    and Navy grades of lieutenant commander, commander, 
                    and captain.
Sec. 404. Extension of requirement for recommendations regarding 
                    appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
                    duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
                    Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
                    serve in 
                    Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force 
                    Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
                    critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
                    institutions for graduates to be considered 
                    educationally qualified for appointment as Reserve 
                    officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
                    in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
                    simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
                    the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
                    to 
                    Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
                    policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
                    years of 
                    service.
Sec. 512. Authority to extend period for entry on active duty under the 
                    delayed entry program.

[[Page 110 STAT. 2426]]

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
                    of 
                    National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
                    creditable 
                    toward Reserve retirement.
Sec. 532. Retirement of Reserve enlisted members who qualify for active 
                    duty retirement after administrative reduction in 
                    enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
                    sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
                    Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
                    income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
                    Scholarship and 
                    Financial Assistance Program.
Sec. 544. Amendments to Reserve Officer Personnel Management Act 
                    provisions.
Sec. 545. Report on number of advisers in active component support of 
                    Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
                    mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
                    Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
                    Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
                    termination of senior ROTC units pending report on 
                    ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
                    graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
                    units by members of the Army Reserve and National 
                    Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
                    midshipman in the Senior Reserve Officers' Training 
                    Corps and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
                    certain Reserve Officers' Training Corps (ROTC) 
                    participants.
Sec. 557. Comptroller General report on cost and policy implications of 
                    permitting up to five percent of service academy 
                    graduates to be assigned directly to Reserve duty 
                    upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
                    American 
                    soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
                    specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
                    educational or emergency purposes.
Sec. 573. Clarification of authority of a Reserve judge advocate to act 
                    as a military notary public when not in a duty 
                    status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
                    when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
                    include firefighters.
Sec. 576. Improvements to program to assist separated military and 
                    civilian personnel to obtain employment as teachers 
                    or teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
                    physical disability is found at any physical 
                    examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

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

[[Page 110 STAT. 2427]]

Sec. 582. Exception to strength limitations for Public Health Service 
                    officers assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
                    officers.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
                    members without dependents who serve on sea duty.
Sec. 605. Uniform applicability of discretion to deny an election not to 
                    occupy 
                    Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
                    allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
                    orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
                    authorities for 
                    reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
                    authorities for nurse officer candidates, registered 
                    nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
                    bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
                    National Oceanic and Atmospheric Administration 
                    officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
                    Government 
                    expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
                    months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
                    between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
                    Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
                    for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
                    retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
                    from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
                    effective concurrently with payment of retired pay 
                    cost-of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
                    Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
                    retired pay to 
                    enhance civil service retirement annuity.
Sec. 638. Administration of benefits for so-called minimum income 
                    widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
                    pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
                    through 
                    private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
                    certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
                    clothing or allowances for enlisted National Guard 
                    technicians.
Sec. 655. Technical correction to prior authority for payment of back 
                    pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
                    not previously receive compensation as a prisoner of 
                    war.
Sec. 657. Payments to certain persons captured and interned by North 
                    Vietnam.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

[[Page 110 STAT. 2428]]

Sec. 702. Implementation of requirement for Selected Reserve dental 
                    insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
                    surviving spouses and certain other dependents of 
                    military retirees.
Sec. 704. Plan for health care coverage for children with medical 
                    conditions caused by parental exposure to chemical 
                    munitions while serving as members of the Armed 
                    Forces.

                       Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
                    facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services health 
                    care 
                    delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
                    necessary treatment in connection with certain 
                    clinical trials.
Sec. 732. Exception to maximum allowable payments to individual health-
                    care 
                    providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
                    current year appropriation.
Sec. 734. Exceptions to requirements regarding obtaining 
                    nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
                    authorities under CHAMPUS.

                        Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
                    Forces Health Professions Scholarship and Financial 
                    Assistance program and Uniformed Services University 
                    of the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
                    medical 
                    research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
                    Department of 
                    Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
                    and dental care for members of Reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
                    Health 
                    Professions Scholarship and Financial Assistance 
                    program.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
                    acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
                    projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
                    acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
                    or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
                    include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

[[Page 110 STAT. 2429]]

                        Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
                    of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
                    activity.
Sec. 823. Amendment of multiyear limitation on contracts for inspection, 
                    maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
                    regarding termination or substantial reduction in 
                    contracts under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
                    affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
                    and 
                    dependency of base on supplies available only from 
                    foreign countries.
Sec. 830. Expansion of report on implementation of automated information 
                    systems to include additional matters regarding 
                    information resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
                    small arms.
Sec. 833. Cable television franchise agreements.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
                    positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
                    workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
                    Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
                    missions, responsibilities, and force structure of 
                    the unified combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
                    time of war.
Sec. 907. Codification of requirements relating to continued operation 
                    of the 
                    Uniformed Services University of the Health 
                    Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
                    Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
                      1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
                      for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
                      Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
                      Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
                      to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
                      officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
                      deceased members of the Coast Guard.

[[Page 110 STAT. 2430]]

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

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
                      contracts for phased maintenance of AE class 
                      ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
                      out of 
                      National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
                      activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
                      counter-drug
                      activities.
Sec. 1033. Transfer of excess personal property to support law 
                      enforcement
                      activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
                      manufacture controlled substances.

                     Subtitle D--Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation 
                      Enhanced Southern Watch.
Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
                      Defense criminal investigations.
Sec. 1047. Report on military readiness requirements of the Armed 
                      Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
                      Columbia.

                        Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
                      against 
                      strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
                      international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
                      imagery 
                      relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
                      Studies.
Sec. 1066. Authority to award to civilian participants in the defense of 
                      Pearl Harbor the Congressional Medal previously 
                      authorized only for military participants in the 
                      defense of Pearl Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
                      military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
                      crime prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of the 
                      Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
                      Defense 
                      organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
                      tortious infliction of injury or disease on 
                      members of the uniformed services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
                      associations for certain savings institutions 
                      serving military personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.

[[Page 110 STAT. 2431]]

Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
                      between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
                      United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

              TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
                      evaluation of certain intelligence officials.

                   Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
                      of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
                      of the 
                      Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

          Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                 Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and Reserve general and flag officer 
                      authorizations.
Sec. 1214. Guard and Reserve technicians.

               Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
                      Reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers of 
                      members of Reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
                      activated Reservists.
Sec. 1234. Report to Congress concerning small business loans for 
                      members released from Reserve service during 
                      contingency operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
                      expenses.
Sec. 1252. Authority to pay transient housing charges for members 
                      performing 
                      active duty for training.
Sec. 1253. Sense of Congress concerning quarters allowance during 
                      service on 
                      active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
                      Reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
                      components in future-years defense programs.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

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

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
                      nuclear delivery systems.

[[Page 110 STAT. 2432]]

Sec. 1303. Strengthening certain sanctions against nuclear proliferation 
                      activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
                      and civic 
                      assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
                      China.
Sec. 1306. Presidential report regarding weapons proliferation and 
                      policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
                      Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
                      improve 
                      security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
                      Intelligence Estimate 95-19.

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

Sec. 1321. Establishment of Commission.
Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                    Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
                      destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
                      radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
                      emergency 
                      situations involving biological or chemical 
                      weapons.
Sec. 1417. Rapid response information system.

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

Sec. 1421. Procurement of detection equipment United States border 
                      security.
Sec. 1422. Extension of coverage of International Emergency Economic 
                      Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

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

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
                      Threat 
                      Reduction programs on elimination or 
                      transportation of nuclear 
                      weapons.
Sec. 1432. Elimination of plutonium production.

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

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

                        Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
                      programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
                      Soviet Union.

[[Page 110 STAT. 2433]]

Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
                      enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
                      transportation of fissile materials at risk of 
                      theft.

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

Sec. 1501. Specification of Cooperative Threat Reduction programs.
Sec. 1502. Fiscal year 1997 funding allocations.
Sec. 1503. Prohibition on use of funds for specified purposes.
Sec. 1504. Limitation on use of funds until specified reports are 
                      submitted.
Sec. 1505. Availability of funds.

           TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

Sec. 1601. Modification of requirement for conversion of military 
                      positions to 
                      civilian positions.
Sec. 1602. Retention of civilian employee positions at military training 
                      bases transferred to National Guard.
Sec. 1603. Clarification of applicability of certain management 
                      constraints on major range and test facility base 
                      structure.
Sec. 1604. Travel expenses and health care for civilian employees of the 
                      Department of Defense abroad.
Sec. 1605. Travel, transportation, and relocation allowances for certain 
                      former 
                      nonappropriated fund employees.
Sec. 1606. Employment and salary practices applicable to Department of 
                      Defense overseas teachers.
Sec. 1607. Employment and compensation of civilian faculty members at 
                      certain Department of Defense schools.
Sec. 1608. Reimbursement of Department of Defense domestic dependent 
                      school board members for certain expenses.
Sec. 1609. Modification of authority for civilian employees of 
                      Department of 
                      Defense to participate voluntarily in reductions 
                      in force.
Sec. 1610. Wage-board compensatory time off.
Sec. 1611. Liquidation of restored annual leave that remains unused upon 
                      transfer of employee from installation being 
                      closed or realigned.
Sec. 1612. Waiver of requirement for repayment of Voluntary Separation 
                      Incentive pay by former Department of Defense 
                      employees reemployed by the Government without 
                      pay.
Sec. 1613. Simplification of rules relating to the observance of certain 
                      holidays.
Sec. 1614. Revision of certain travel management authorities.
Sec. 1615. Failure to comply with veterans' preference requirements to 
                      be treated as a prohibited personnel practice.
Sec. 1616. Pilot programs for defense employees converted to contractor 
                      employees due to privatization at closed military 
                      installations.

     Subtitle B--Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.
Sec. 1632. Management of civilian intelligence personnel.
Sec. 1633. Repeal of superseded sections and clerical and conforming 
                      amendments.
Sec. 1634. Other personnel management authorities.
Sec. 1635. Effective date.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.
Sec. 1712. Temporary quarters subsistence expenses allowance.
Sec. 1713. Modification of residence transaction expenses allowance.
Sec. 1714. Authority to pay for property management services.
Sec. 1715. Authority to transport a privately owned motor vehicle within 
                      the 
                      continental United States.
Sec. 1716. Authority to pay limited relocation allowances to an employee 
                      who is performing an extended assignment.
Sec. 1717. Authority to pay a home marketing incentive.
Sec. 1718. Revision and reenactment of additional provisions relating to 
                      relocation expenses.

[[Page 110 STAT. 2434]]

                  Subtitle B--Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification 
                      requirement.
Sec. 1722. Transfer of authority to prescribe regulations.
Sec. 1723. Conforming and clerical amendments.
Sec. 1724. Assessment of cost savings.
Sec. 1725. Effective date and issuance of regulations.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.
Sec. 1802. Powers.
Sec. 1803. Purposes.
Sec. 1804. Service of process.
Sec. 1805. Membership.
Sec. 1806. Board of directors.
Sec. 1807. Officers.
Sec. 1808. Restrictions.
Sec. 1809. Liability.
Sec. 1810. Maintenance and inspection of books and records.
Sec. 1811. Audit of financial transactions.
Sec. 1812. Annual report.
Sec. 1813. Reservation of right to alter, amend, or repeal charter.
Sec. 1814. Tax-exempt status required as condition of charter.
Sec. 1815. Termination.
Sec. 1816. Definition of State.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Land acquisition, National Ground Intelligence Center, 
                      Charlottesville, Virginia.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Beach replenishment, Naval Air Station, North Island, 
                      California.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                      projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Elimination of authority to carry out fiscal year 1995 
                      project, Spangdahlem Air Force Base, Germany.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
                      projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
                      year 1996 Defense Agencies military construction, 
                      land acquisition, and military family housing 
                      functions.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

[[Page 110 STAT. 2435]]

Sec. 2602. Authorization and funding for construction and improvement of 
                      Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
                      Airport, Maine.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                      specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1994 
                      projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1993 
                      projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1992 
                      projects.
Sec. 2705. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for unspecified minor 
                      construction projects.
Sec. 2802. Redesignation of North Atlantic Treaty Organization 
                      Infrastructure 
                      program.
Sec. 2803. Improvements to family housing units.
Sec. 2804. Availability of funds for planning, execution, and 
                      administration of contracts for family housing and 
                      unaccompanied housing.

            Subtitle B--Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment 
                      transfers under 1988 base closure law.
Sec. 2812. Contracting for certain services at facilities remaining on 
                      closed 
                      installations.
Sec. 2813. Authority to compensate owners of manufactured housing.
Sec. 2814. Additional purpose for which adjustment and diversification 
                      assistance is authorized.
Sec. 2815. Payment of stipulated penalties assessed under CERCLA in 
                      connection with Loring Air Force Base, Maine.
Sec. 2816. Plan for utilization, reutilization, or disposal of 
                      Mississippi Army Ammunition Plant.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, 
                      Virginia.
Sec. 2822. Land transfer, Fort Sill, Oklahoma.
Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.
Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South 
                      Carolina.
Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.
Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, 
                      Manchester, New Hampshire.
Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.
Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

                        Part II--Navy Conveyances

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.
Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, 
                      Virginia.
Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons 
                      Industrial Reserve Plant, Calverton, New York.
Sec. 2834. Land conveyance, former naval reserve facility, Lewes, 
                      Delaware.
Sec. 2835. Modification of land conveyance authority, Naval Reserve 
                      Center, 
                      Seattle, Washington.
Sec. 2836. Release of condition on reconveyance of transferred land, 
                      Guam.
Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air 
                      Station, 
                      Meridian, Mississippi.

                     Part III--Air Force Conveyances

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, 
                      South 
                      Dakota.
Sec. 2842. Conveyance of primate research complex and Air Force-owned 
                      chimpanzees, Holloman Air Force Base, New Mexico.

                       Part IV--Other Conveyances

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

[[Page 110 STAT. 2436]]

Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, 
                      North 
                      Dakota.
Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.
Sec. 2854. Modification of boundaries of White Sands National Monument 
                      and White Sands Missile Range.

                        Subtitle D--Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.
Sec. 2862. Authority to enter into cooperative agreements for the 
                      management of cultural resources on military 
                      installations.
Sec. 2863. Demonstration project for installation and operation of 
                      electric power distribution system at Youngstown 
                      Air Reserve Station, Ohio.
Sec. 2864. Renovation of the Pentagon reservation.
Sec. 2865. Plan for repairs and stabilization of the historic district 
                      at the Forest Glen Annex of Walter Reed Medical 
                      Center, Maryland.
Sec. 2866. Naming of range at Camp Shelby, Mississippi.
Sec. 2867. Designation of Michael O'Callaghan military hospital.
Sec. 2868. Naming of building at the Uniformed Services University of 
                      the Health Sciences.

                  TITLE XXIX--MILITARY LAND WITHDRAWALS

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

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military 
                      Reser-
                      vation.
Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver 
                      Site.
Sec. 2904. Maps and legal descriptions.
Sec. 2905. Management of withdrawn lands.
Sec. 2906. Management of withdrawn and acquired mineral resources.
Sec. 2907. Hunting, fishing, and trapping.
Sec. 2908. Termination of withdrawal and reservation.
Sec. 2909. Determination of presence of contamination and effect of 
                      contamination.
Sec. 2910. Delegation.
Sec. 2911. Hold harmless.
Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.
Sec. 2913. Authorization of appropriations.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.
Sec. 2922. Withdrawal and reservation of lands for El Centro.
Sec. 2923. Maps and legal descriptions.
Sec. 2924. Management of withdrawn lands.
Sec. 2925. Duration of withdrawal and reservation.
Sec. 2926. Continuation of ongoing decontamination activities.
Sec. 2927. Requirements for extension.
Sec. 2928. Early relinquishment of withdrawal.
Sec. 2929. Delegation of authority.
Sec. 2930. Hunting, fishing, and trapping.
Sec. 2931. Hold harmless.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Defense fixed asset acquisition/privatization.
Sec. 3104. Other defense activities.
Sec. 3105. Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
                      activities.

[[Page 110 STAT. 2437]]

Sec. 3127. Funds available for all national security programs of the 
                      Department of Energy.
Sec. 3128. Availability of funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
                      facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
                      development 
                      purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
                      People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
                      environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
                      facilities and 
                      nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
                      at the 
                      defense waste processing facility, Savannah River 
                      Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
                      spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
                      facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
                      infrastructure at 
                      Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
                      reports.
Sec. 3153. Requirement to develop future use plans for environmental 
                      management program.
Sec. 3154. Report on Department of Energy liability at Department 
                      superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
                      security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
                      budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
                      Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
                      laboratories and 
                      nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
                      regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
                      environmental 
                      restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
                      expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
                      remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
                      Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
                      Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.
Sec. 3172. Applicability.
Sec. 3173. Site manager.
Sec. 3174. Department of Energy orders.
Sec. 3175. Deployment of technology for remediation of defense nuclear 
                      waste.
Sec. 3176. Performance-based contracting.
Sec. 3177. Designation of covered facilities as environmental cleanup 
                      demonstration areas.
Sec. 3178. Definitions.
Sec. 3179. Termination.
Sec. 3180. Report.

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

Sec. 3181. Short title.

[[Page 110 STAT. 2438]]

Sec. 3182. Definitions.
Sec. 3183. Management plan.
Sec. 3184. Repeal of test phase and retrieval plans.
Sec. 3185. Test phase activities.
Sec. 3186. Disposal operations.
Sec. 3187. Environmental Protection Agency disposal regulations.
Sec. 3188. Compliance with environmental laws and regulations.
Sec. 3189. Sense of Congress on commencement of emplacement of 
                      transuranic waste.
Sec. 3190. Decommissioning of WIPP.
Sec. 3191. Authorizations for economic assistance and miscellaneous 
                      payments.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of certain materials in National Defense Stockpile.

                     Subtitle B--Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.
Sec. 3312. Notification requirements.
Sec. 3313. Importation of strategic and critical materials.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
                      year 1997.

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

           Subtitle B--Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.
Sec. 3522. Definitions and recommendation for legislation.
Sec. 3523. Administrator.
Sec. 3524. Deputy Administrator and Chief Engineer.
Sec. 3525. Office of Ombudsman.
Sec. 3526. Appointment and compensation; duties.
Sec. 3527. Applicability of certain benefits.
Sec. 3528. Travel and transportation.
Sec. 3529. Clarification of definition of agency.
Sec. 3530. Panama Canal Employment System; merit and other employment 
                      requirements.
Sec. 3531. Employment standards.
Sec. 3532. Repeal of obsolete provision regarding interim application of 
                      Canal Zone Merit System.
Sec. 3533. Repeal of provision relating to recruitment and retention 
                      remuneration.
Sec. 3534. Benefits based on basic pay.
Sec. 3535. Vesting of general administrative authority of Commission.
Sec. 3536. Applicability of certain laws.
Sec. 3537. Repeal of provision relating to transferred or reemployed 
                      employees.
Sec. 3538. Administration of special disability benefits.
Sec. 3539. Panama Canal Revolving Fund.
Sec. 3540. Printing.
Sec. 3541. Accounting policies.
Sec. 3542. Interagency services; reimbursements.
Sec. 3543. Postal service.
Sec. 3544. Investigation of accidents or injury giving rise to claim.
Sec. 3545. Operations regulations.
Sec. 3546. Miscellaneous repeals.
Sec. 3547. Exemption from Metric Conversion Act of 1975.
Sec. 3548. Conforming and clerical amendments.
Sec. 3549. Repeal of Panama Canal Code.

[[Page 110 STAT. 2439]]

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior 
                    helicopters.
Sec. 112. Multiyear procurement authority for Army programs.
Sec. 113. Bradley TOW 2 Test Program sets.

                        Subtitle C--Navy Programs

Sec. 121. Nuclear attack submarine programs.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. EA-6B aircraft reactive jammer program.
Sec. 124. T-39N trainer aircraft for the Navy.
Sec. 125. Penguin missile program.

                     Subtitle D--Air Force Programs

Sec. 131. Repeal of limitation on procurement of F-15E aircraft.
Sec. 132. Modification to multiyear procurement authority for C-17 
                    aircraft 
                    program.

                        Subtitle E--Other Matters

Sec. 141. Assessments of modernization priorities of the reserve 
                    components.
Sec. 142. Destruction of existing stockpile of lethal chemical agents 
                    and munitions.
Sec. 143. Extension of authority to carry out Armament Retooling and 
                    Manufacturing Support Initiative.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Army as follows:
            (1) For aircraft, $1,314,015,000.
            (2) For missiles, $1,031,829,000.
            (3) For weapons and tracked combat vehicles, $1,409,514,000.
            (4) For ammunition, $1,003,028,000.
            (5) For other procurement, $2,990,240,000.

[[Page 110 STAT. 2440]]

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 1997 for procurement for the Navy as follows:
            (1) For aircraft, $7,034,926,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,345,408,000.
            (3) For shipbuilding and conversion, $6,193,330,000.
            (4) For other procurement, $2,893,840,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1997 for procurement for the Marine Corps in the amount 
of $560,148,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $293,239,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement for the Air Force as follows:
            (1) For aircraft, $6,764,420,000.
            (2) For missiles, $2,525,875,000.
            (3) For ammunition, $278,302,000.
            (4) For other procurement, $5,814,419,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for procurement of aircraft, vehicles, communications equipment, and 
other equipment for the reserve components of the Armed Forces as 
follows:
            (1) For the Army National Guard, $171,000,000.
            (2) For the Air National Guard, $234,000,000.
            (3) For the Army Reserve, $98,000,000.
            (4) For the Naval Reserve, $116,000,000.
            (5) For the Air Force Reserve, $94,000,000.
            (6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $759,847,000 for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the Department of Defense for procurement for carrying

[[Page 110 STAT. 2441]]

out health care programs, projects, and activities of the Department of 
Defense in the total amount of $269,470,000.

                        Subtitle B--Army Programs

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

    Section 133 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY 
                        PROGRAMS.

    (a) Avenger Air Defense Missile System.--Notwithstanding the 
limitation in subsection (k) of section 2306b of title 10, United States 
Code, relating to the maximum duration of a multiyear contract under the 
authority of that section, the Secretary of the Army may extend the 
multiyear contract in effect during fiscal year 1996 for the Avenger Air 
Defense
Missile system through fiscal year 1997 and may award such an extension.

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

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

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

                        Subtitle C--Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) Amounts Authorized From SCN Account.--(1) Of the amount 
authorized to be appropriated by section 102(a)(3) for fiscal year 
1997--
            (A) $699,071,000 is available for continued construction of 
        the third vessel (designated SSN-23) in the Seawolf attack 
        submarine class, which shall be the final vessel in that class;
            (B) $296,186,000 is available for long-lead and advance 
        construction and procurement of components for construction of a 
        submarine (previously designated by the Navy as the New Attack 
        Submarine) beginning in fiscal year 1998 to be built by Electric 
        Boat Division; and
            (C) $701,000,000 is available for long-lead and advance 
        construction and procurement of components for construction of a 
        second submarine (previously designated by the Navy as the New 
        Attack Submarine) beginning in fiscal year 1999 to be built by 
        Newport News Shipbuilding.

[[Page 110 STAT. 2442]]

    (2) In addition to the purposes for which the amounts under 
subparagraphs (B) and (C) of paragraph (1) are available, such amounts 
are also available for contracts with Electric Boat Division and Newport 
News Shipbuilding to carry out the provisions of the ``Memorandum of 
Agreement Among the Department of the Navy, Electric Boat Corporation 
(EB) and Newport News Shipbuilding and Drydock Company (NNS) Concerning 
the New Attack Submarine'', dated April 5, 1996, relating to design data 
transfer, design improvements, integrated process teams, and updated 
design base.
    (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the amount 
authorized to be appropriated by section 201(2), $487,611,000 is 
available for the design of the submarine previously designated by the 
Navy as the New Attack Submarine.
    (2)(A) Of the amount authorized to be appropriated by section 
201(2), $60,000,000 is available for obligation under contracts with 
Electric Boat Division and Newport News Shipbuilding and other entities 
to address the inclusion on future nuclear attack submarines of the core 
advanced technologies that are identified by the Secretary of Defense 
(in the report of the Secretary entitled ``Report on Nuclear Attack 
Submarine Procurement and Submarine Technology'', submitted to Congress 
on March 26, 1996) as those technologies the maturation of which the 
Submarine Technology Assessment Panel recommended be addressed in its 
March 15, 1996, final report to the Assistant Secretary of the Navy for 
Research, Development, and Acquisition, as follows: hydrodynamics, 
alternative sail designs, advanced arrays, electric drive, external 
weapons, and active controls and mounts.
    (B) Of the amount available under subparagraph (A), $20,000,000 
shall be equally divided between Electric Boat Division and Newport News 
Shipbuilding for the purpose of ensuring that those shipbuilders are 
principal participants in the process of addressing the inclusion of 
technologies referred to in subparagraph (A) on future nuclear attack 
submarines. Contracts with the shipbuilders under this subparagraph 
shall provide the shipbuilders with wide latitude to pursue submarine-
wide, integrated systems approaches to the inclusion of such 
technologies. The Secretary of the Navy shall ensure that those 
shipbuilders have access for such purpose (under procedures prescribed 
by the Secretary) to the Navy laboratories and the Office of Naval 
Intelligence and (in accordance with arrangements to be made by the 
Secretary) to the Defense Advanced Research Projects Agency.
    (3) Of the amount authorized to be appropriated by section 201(2), 
$38,000,000 is available to begin funding those Category I and Category 
II advanced technologies described in Appendix C of the report of the 
Secretary of Defense referred to in paragraph (2)(A). The Secretary of 
the Navy shall ensure that Electric Boat Division and Newport News 
Shipbuilding are also principal participants in the technology 
initiatives pursued with such funds to ensure submarine-wide, integrated 
systems approaches to the inclusion of such technologies on future 
nuclear attack submarines.
    (4) In addition to the purposes for which the amounts under 
paragraphs (1), (2), and (3) are available, such amounts are also 
available for contracts with Electric Boat Division and Newport News 
Shipbuilding to carry out the provisions of the memorandum of agreement 
referred to in subsection (a)(2) for research and development activities 
under that memorandum of agreement.

[[Page 110 STAT. 2443]]

    (c) Amount From Fiscal Year 1996 Funds for National Defense Sealift 
Fund.--(1) Section 132 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.
    (2) The amount referred to in section 132 of the National Defense 
Authorization Act for Fiscal Year 1996 (as in effect immediately before 
the repeal by paragraph (1)) shall be available to the Secretary of the 
Navy for activities relating only to advanced submarine technology that 
involve the construction of large scale vehicles for purposes of 
hydrodynamic and
hydroacoustic research on developmental designs for hulls and propulsion 
systems.

    (d) Contracts Authorized.--(1) The Secretary of the Navy is 
authorized, using funds available pursuant to subparagraphs (B) and (C) 
of subsection (a)(1), to enter into contracts with Electric Boat 
Division and Newport News Shipbuilding, and suppliers of components, 
during fiscal year 1997 for--
            (A) the procurement of long-lead components for the fiscal 
        year 1998 submarine and the fiscal year 1999 submarine under 
        this section; and
            (B) advance construction of such components and other 
        components for such submarines.

    (2) The Secretary may enter into a contract or contracts under this 
section with the shipbuilder of the fiscal year 1998 submarine only if 
the Secretary enters into a contract or contracts under this section 
with the shipbuilder of the fiscal year 1999 submarine.
    (e) <<NOTE: Certification.>>  Limitations.--(1)(A) Of the amounts 
specified in subsection (a)(1), not more than $100,000,000 may be 
obligated until the Secretary of Defense certifies in writing to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives that procurement of nuclear 
attack submarines described in subparagraph (B) will be under one or 
more contracts that are entered into after competition between Electric 
Boat Division and Newport News Shipbuilding in which the Secretary of 
the Navy solicits competitive proposals and awards the contract or 
contracts on the basis of price.

    (B) The submarines referred to in subparagraph (A) are nuclear 
attack submarines that are to be constructed beginning--
            (i) after fiscal year 1999; or
            (ii) if four submarines are to be procured as provided for 
        in the plan required under section 131(c) of the National 
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 208), after fiscal year 2001.

<<NOTE: Reports.>>     (2) Of the amounts specified in subsection 
(a)(1), not more than $675,000,000 may be obligated until the Under 
Secretary of Defense for Acquisition and Technology submits to the 
congressional committees specified in paragraph (1) a report in writing 
detailing the following:
            (A) The Under Secretary's oversight activities to date, and 
        plans for the future, for the development and improvement of the 
        nuclear attack submarine program of the Navy as required by 
        section 131(b)(2)(C) of the National Defense Authorization Act 
        for Fiscal Year 1996 (110 Stat. 207).
            (B) The implementation of, and activities conducted under, 
        the program required to be established by the Director of the 
        Defense Advanced Research Projects Agency by section 131(i) of 
        the National Defense Authorization Act for Fiscal Year 1996 (110 
        Stat. 210) for the development and demonstration of

[[Page 110 STAT. 2444]]

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

    (3) <<NOTE: Certification.>>  Of the amount specified in subsection 
(b)(1), not more than $100,000,000 may be obligated or expended until 
the Under Secretary of Defense (Comptroller) certifies in writing to the 
congressional committees specified in paragraph (1) that--
            (A) funds specified in subsection (c)(2) have been made 
        available for obligation; and
            (B) to the extent that funds specified in paragraphs (2) and 
        (3) of subsection (b) have been appropriated for the purposes 
        specified in such paragraphs, such funds have been made 
        available for obligation.

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

    (g) Design Responsibility.--(1) The Secretary of the Navy shall 
carry out the submarine program described in section 131 of the National 
Defense Authorization Act for Fiscal Year 1996 in a manner that ensures 
that each of the two shipbuilders in-
volved in the design and construction of the four submarines described 
in that section be allowed to propose to the Secretary any design 
improvement that the shipbuilder considers appropriate for the 
submarines to be built by that shipbuilder as part of those four 
submarines. The Secretary shall ensure that both shipbuilders have full 
and open access to all design data concerning the design of the 
submarine previously designated by the Navy as the New Attack Submarine.
    (2) The designs proposed by the shipbuilders should proceed from, 
but not be limited to, the specific advanced technologies referred to in 
subsection (b)(2)(A), especially technologies involving hydrodynamics 
and hydroacoustics concepts.
    (3) <<NOTE: Reports.>> The Secretary shall require both shipbuilders 
to submit to the Secretary an annual report on the progress of the 
design work on the submarines referred to in paragraph (1) and shall 
transmit each such report to the committees specified in subsection 
(e)(1).

[[Page 110 STAT. 2445]]

    (4) <<NOTE: Reports.>>  The Secretary shall also submit an annual 
report to the committees specified in subsection (e)(1) on the design 
improvements proposed by the two shipbuilders under paragraph (1) for 
incorporation on any of the four submarines and on the degree to which 
design information on the base design and design improvements has been 
shared between the shipbuilders. Each annual report shall set forth each 
design improvement proposed and whether that proposal was--
            (A) reviewed, approved, and funded by the Navy;
            (B) reviewed and approved, but not funded; or
            (C) not approved, in which case the report shall include the 
        reasons therefor and any views of the shipyard making the 
        proposal.

    (5) The reports referred to in paragraphs (3) and (4) shall be 
submitted concurrently with the annual revisions to the Secretary of 
Defense's nuclear attack submarine plan required by section 131(e) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 209).
    (h) Serial Production.--The Secretary of Defense shall modify the 
plan relating to development of a program leading to production of a 
more capable and less expensive submarine than the New Attack Submarine 
that was submitted to Congress pursuant to section 131(c) of the 
National Defense Authorization Act for Fiscal Year 1996 in order to 
provide in such plan the option for selection of a design for a next 
submarine for serial production not earlier than fiscal year 2002 
(rather than fiscal year 2003, as provided in paragraph (3)(B) of such 
section 131(c)).
    (i) References to Shipbuilders.--For purposes of this 
section--
            (1) the shipbuilder referred to as ``Electric Boat 
        Division'' is the Electric Boat Division of the General Dynamics 
        Corporation; and
            (2) the shipbuilder referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and Drydock 
        Company.

    (j) Submarines Defined by Reference to Fiscal Year.--For purposes of 
this section--
            (1) the term ``fiscal year 1998 submarine'' means the 
        submarine referred to in subsection (a)(1)(B); and
            (2) the term ``fiscal year 1999 submarine'' means the 
        submarine referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Funding.--(1) Subject to paragraph (3), funds authorized to be 
appropriated by section 102(a)(3) may be made available for contracts 
entered into during fiscal year 1996 under subsection (b)(1) of section 
135 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 211) for construction for the third of 
the three Arleigh Burke class destroyers covered by that subsection. 
Such funds are in addition to amounts made available for such contracts 
by the second sentence of subsection (a) of that section.
    (2) Subject to paragraph (3), funds authorized to be appropriated by 
section 102(a)(3) may be made available for contracts entered into 
during fiscal year 1997 under subsection (b)(2) of such section 135 for 
construction (including advance procurement) for the Arleigh Burke class 
destroyers covered by such subsection (b)(2).

[[Page 110 STAT. 2446]]

    (3) The aggregate amount of funds available under paragraphs (1) and 
(2) for contracts referred to in such paragraphs may not exceed 
$3,483,030,000.
    (4) Within the amount authorized to be appropriated by section 
102(a)(3), $525,000,000 is authorized to be appropriated for advance 
procurement for construction for the Arleigh Burke class destroyers 
authorized by subsection (b).
    (b) Authority for Multiyear Procurement of Twelve Vessels.--The 
Secretary of the Navy is authorized, pursuant to section 2306b of title 
10, United States Code, to enter into multiyear contracts for the 
procurement of a total of 12 Arleigh Burke class destroyers at a 
procurement rate of three ships in each of fiscal years 1998, 1999, 
2000, and 2001 in accordance with this subsection and subsection (a)(4), 
subject to the availability of appropriations for such destroyers. A 
contract for construction of one or more vessels that is entered into in 
accordance with this subsection shall include a clause that limits the 
liability of the Government to the contractor for any termination of the 
contract.

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

    (a) Limitation.--None of the funds appropriated pursuant to section 
102(a)(1) for modifications or upgrades of EA-6B aircraft may be 
obligated, other than for a reactive jammer program for such aircraft, 
until 30 days after the date on which the Secretary of the Navy submits 
to the congressional defense committees in writing--
            (1) <<NOTE: Certification.>>  a certification that some or 
        all of such funds have been obligated for a reactive jammer 
        program for EA-6B aircraft; and
            (2) <<NOTE: Reports.>>  a report that sets forth a detailed, 
        well-defined program for--
                    (A) developing a reactive jamming capability for EA-
                6B aircraft; and
                    (B) upgrading the EA-6B aircraft of the Navy to 
                incorporate the reactive jamming capability.

    (b) Contingent Transfer of Funds to Air Force.--(1) If the Secretary 
of the Navy has not submitted the certification and report described in 
subsection (a) to the congressional defense committees before June 1, 
1997, then, on that date, the Secretary of Defense shall transfer to the 
Air Force, out of appropriations available to the Navy for fiscal year 
1997 for procurement of aircraft, the amount equal to the amount 
appropriated to the Navy for fiscal year 1997 for modifications and 
upgrades of EA-6B aircraft.
    (2) Funds transferred to the Air Force pursuant to paragraph (1) 
shall be available for maintaining and upgrading the jamming capability 
of EF-111 aircraft.

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

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

[[Page 110 STAT. 2447]]

SEC. 125. PENGUIN MISSILE PROGRAM.

    (a) Multiyear Procurement Authority.--The Secretary of the Navy may, 
in accordance with section 2306b of title 10, United States Code, enter 
into multiyear procurement contracts for the procurement of not more 
than 106 Penguin missile systems.
    (b) Limitation on Total Cost.--The total amount obligated or 
expended for procurement of Penguin missile systems under contracts 
under subsection (a) may not exceed $84,800,000.

                     Subtitle D--Air Force Programs

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

    Section 134 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1383) is repealed.
SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 
                        AIRCRAFT PROGRAM.

    (a) Multiyear Contracts Authorized.--The Secretary of the Air Force 
may enter into one or more multiyear contracts for the procurement of C-
17 aircraft (including the section 2703 contract entered into before the 
date of the enactment of this Act under the authority of section 2703 of 
the Supplemental Appropriations Act of 1996 (title II of Public Law 104-
134)). The total number of aircraft contracted to be procured under such 
multiyear contracts may not exceed 80. Any such contract shall be 
entered into in accordance with section 2306b of title 10, United States 
Code (and subject to such modifications as may be authorized by law in 
the maximum period for such contracts specified in subsection (k) of 
such section).
    (b) Requirement To Negotiate Option to Convert Existing Contract to 
Six Program Years.--The Secretary of the Air Force shall negotiate with 
the prime contractor for the C-17 aircraft program so as to achieve a 
contract option for the United States under the section 2703 contract to 
convert the multiyear procurement period under that contract to a period 
of six program years based upon the level of funding for that program 
for fiscal year 1997.
    (c) Contract Period.--A contract entered into after the date of the 
enactment of this Act on a multiyear basis under the authority of 
subsection (a) may (notwithstanding section 2306b(k) of title 10, United 
States Code) be for a period of six program years.
    (d) Section 2703 Contract Defined.--For purposes of this section, 
the term ``section 2703 contract'' means the contract entered into by 
the Secretary of the Air Force on May 31, 1996, with the prime 
contractor for the C-17 aircraft program under the authority of section 
2703 of the Supplemental Appropriations Act of 1996 (title II of Public 
Law 104-134) providing for a multiyear procurement of C-17 aircraft over 
seven program years with an option for the Secretary to convert that 
period to six program years.

[[Page 110 STAT. 2448]]

                        Subtitle E--Other Matters

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

    (a) Assessments Required.--Not later than December 1, 1996, each 
officer referred to in subsection (b) shall submit to the congressional 
defense committees an assessment of the modernization priorities 
established for the reserve component or reserve components for which 
that officer is responsible.
    (b) Responsible Officers.--The officers required to submit a report 
under subsection (a) are as follows:
            (1) The Chief of the National Guard Bureau.
            (2) The Chief of Army Reserve.
            (3) The Chief of Air Force Reserve.
            (4) The Director of Naval Reserve.
            (5) The Commanding General, Marine Forces Reserve.
SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL 
                        AGENTS AND MUNITIONS.

    Section 152 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note) is 
amended by adding at the end the following new subsections:
    ``(e) Assessment of Alternative Technologies for Demilitarization of 
Assembled Chemical Munitions.--(1) In addition to the assessment 
required by subsection (c), the Secretary of Defense shall conduct an 
assessment of the chemical demilitarization program for destruction of 
assembled chemical munitions and of the alternative demilitarization 
technologies and processes (other than incineration) that could be used 
for the destruction of the lethal chemical agents that are associated 
with these munitions, while ensuring maximum protection for the general 
public, the personnel involved in the demilitarization program, and the 
environment. The measures considered shall be limited to those that 
would minimize the risk to the public and reduce the total cost of the 
chemical agents and munitions destruction program. The assessment shall 
be conducted without regard to any limitation that would otherwise apply 
to the conduct of such assessment under any provision of law.
    ``(2) The assessment shall be conducted in coordination with the 
National Research Council.
    ``(3) Among the alternatives, the assessment shall include a 
determination of the cost of incineration of the current chemical 
munitions stockpile by building incinerators at each existing facility 
compared to the proposed cost of dismantling those same munitions, 
neutralizing them at each storage site (other than Tooele Army Depot or 
Johnston Atoll), and transporting
the neutralized remains and all munitions parts to a treatment, storage, 
and disposal facility within the United States that has the necessary 
environmental permits to undertake incineration of the material.

    ``(4) Based on the results of the assessment, the Secretary shall 
develop appropriate recommendations for revision of the chemical 
demilitarization program.
    ``(5) <<NOTE: Reports.>>  Not later than December 31, 1997, the 
Secretary of Defense shall submit to Congress a report on the assessment 
conducted in accordance with paragraph (1) and any recommendations for

[[Page 110 STAT. 2449]]

revision of the chemical demilitarization program, including the 
continued development of alternative demilitarization technologies and 
processes other than incineration that could be used for the destruction 
of the lethal chemical agents that are associated with these assembled 
chemical munitions and the chemical munitions demilitarization sites for 
which the selected technologies should be developed.

    ``(f) Pilot Program for Demilitarization of Chemical Agents for 
Assembled Munitions.--(1) If the Secretary of Defense makes a decision 
to continue the development of an alternative demilitarization 
technology or process (other than incineration) that could be used for 
the destruction of the lethal chemical agents that are associated with 
assembled chemical munitions, $25,000,000 shall be available from the 
funds authorized to be appropriated in section 107 of the National 
Defense Authorization Act for Fiscal Year 1997 for the chemical agents 
and munitions destruction program, in order to initiate a pilot program 
using the selected alternative technology or process for the destruction 
of chemical agents that are stored at these sites.
    ``(2) <<NOTE: Notice.>>  Not less than 30 days before using funds to 
initiate the pilot program under paragraph (1), the Secretary shall 
submit notice in writing to Congress of the Secretary's intent to do so.

    ``(3) The pilot program shall be conducted at the selected chemical 
agent and munitions stockpile storage site for which the alternative 
technology or process is recommended.''.
SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT RETOOLING 
                        AND MANUFACTURING SUPPORT INITIATIVE.

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

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology programs.
Sec. 204. Defense Special Weapons Agency.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Space-Based Infrared System program.
Sec. 213. Clementine 2 micro-satellite development program.
Sec. 214. Live-fire survivability testing of V-22 Osprey aircraft.
Sec. 215. Live-fire survivability testing of F-22 aircraft.
Sec. 216. Limitation on funding for F-16 tactical manned reconnaissance 
                    aircraft.
Sec. 217. Cost analysis of F-22 aircraft program.
Sec. 218. F-22 aircraft program reports.
Sec. 219. Cost-benefit analysis of F/A-18E/F aircraft program.
Sec. 220. Joint Advanced Strike Technology (JAST) program.
Sec. 221. Unmanned aerial vehicles.
Sec. 222. High altitude endurance unmanned aerial reconnaissance system.
Sec. 223. Cyclone class patrol craft self-defense.
Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber 
                    Optic 
                    Guided Missile (EFOG-M) system.
Sec. 225. Hydra-70 rocket product improvement program.

[[Page 110 STAT. 2450]]

Sec. 226. Federally funded research and development centers.
Sec. 227. Demilitarization of conventional munitions, rockets, and 
                    explosives.
Sec. 228. Research activities of the Defense Advanced Research Projects 
                    Agency relating to chemical and biological warfare 
                    defense technology.
Sec. 229. Certification of capability of United States to prevent 
                    illegal importation of nuclear, biological, or 
                    chemical weapons.
Sec. 230. Nonlethal weapons and technologies programs.
Sec. 231. Counterproliferation support program.

             Subtitle C--Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 
                    1997.
Sec. 242. Certification of capability of United States to defend against 
                    single 
                    ballistic missile.
Sec. 243. Report on ballistic missile defense and proliferation.
Sec. 244. Revision to annual report on ballistic missile defense 
                    program.
Sec. 245. Report on Air Force National Missile Defense Plan.
Sec. 246. Capability of National Missile Defense system.
Sec. 247. Actions to limit adverse effects on private sector employment 
                    of establishment of National Missile Defense Joint 
                    Program Office.
Sec. 248. ABM Treaty defined.

                        Subtitle D--Other Matters

Sec. 261. Maintenance and repair at Air Force installations.
Sec. 262. Report relating to Small Business Innovation Research Program.
Sec. 263. Amendment to University Research Initiative Support program.
Sec. 264. Amendments to Defense Experimental Program To Stimulate 
                    Competitive Research.
Sec. 265. Elimination of report on the use of competitive procedures for 
                    the award of certain contracts to colleges and 
                    universities.
Sec. 266. Pilot program for transfer of defense technology information 
                    to private 
                    industry.
Sec. 267. Research under transactions other than contracts and grants.
Sec. 268. Desalting technologies.
Sec. 269. Evaluation of digital video network equipment used in Olympic 
                    games.
Sec. 270. Annual joint warfighting science and technology plan.

         Subtitle E--National Oceanographic Partnership Program

Sec. 281. Findings.
Sec. 282. National Oceanographic Partnership Program.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,780,615,000.
            (2) For the Navy, $8,068,299,000.
            (3) For the Air Force, $14,756,366,000.
            (4) For Defense-wide activities, $9,691,293,000, of which--
                    (A) $269,038,000 is authorized for the activities of 
                the Director, Test and Evaluation; and
                    (B) $21,968,000 is authorized for the Director of 
                Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 1997.--Of the amounts authorized to be appropriated 
by section 201, $4,031,343,000 shall be available for basic research and 
applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense

[[Page 110 STAT. 2451]]

research and development under Department of Defense category 6.1 or 
6.2.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

    (a) Allocation of Funds.--Of the amount appropriated pursuant to the 
authorization in section 201(4), $85,000,000 shall be available for the 
dual-use technology program under this section.
    (b) Designation of Official for Dual-Use Program.--(1) The Secretary 
of Defense shall designate a senior official in the Office of the 
Secretary of Defense to have as that official's sole responsibilities 
developing policy relating to, and ensuring effective implementation of, 
the dual-use technology program of the Department of Defense. In 
carrying out such responsibilities, the official shall ensure--
            (A) that commercial technologies are integrated into current 
        and future military systems to the maximum extent practicable;
            (B) that dual-use projects are coordinated with the joint 
        warfighting science and technology plan referred to in section 
        270; and
            (C) that dual-use projects of the military departments and 
        the defense agencies are coordinated and avoid unnecessary 
        duplication.

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

    (c) Funding Requirement.--Of the amounts appropriated pursuant to 
the authorizations in section 201 for the Department of Defense for 
science and technology programs for fiscal year 1997, at least 5 percent 
of such amounts shall be available only for dual-use projects of the 
Department of Defense. The funds made available under the preceding 
sentence are in addition to the funds made available under subsection 
(a).
    (d) Limitation on Obligations.--Funds made available pursuant to 
subsections (a) and (c) may be used for a dual-use project only if the 
contract, cooperative agreement, or other
transaction by which the project is carried out is entered into through 
the use of competitive procedures.

    (e) Transfer Authority.--In addition to the transfer authority 
provided in section 1001, the Secretary of Defense may transfer funds 
made available pursuant to subsections (a) and (c) for a dual-use 
project from a military department or defense agency to another military 
department or defense agency to ensure efficient implementation of the 
dual-use technology program. The Secretary may delegate the authority 
provided in the preceding sentence to the senior official designated 
under subsection (b).
    (f) Federal Cost Share.--The share contributed by the Secretary of a 
military department or the head of a defense agency for the cost of a 
dual-use project during fiscal year 1997 may not be greater than 50 
percent of the cost of the project for that fiscal year.

    (g) Report.--At the same time the President submits to Congress the 
budget for fiscal year 1998 pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report that specifies the investment strategy

[[Page 110 STAT. 2452]]

for the dual-use technology program to be conducted during fiscal years 
1998, 1999, and 2000.
    (h) Definitions.--In this section:
            (1) The term ``dual-use technology program'' means the 
        program of the Department of Defense under which research or 
        development of a dual-use technology (as defined in section 2491 
        of title 10, United States Code) is carried out and the costs of 
        which are shared between the Department of Defense and non-
        Government entities. The term includes the dual-use critical 
        technology program established pursuant to section 2511 of title 
        10, United States Code.
            (2) The term ``dual-use project'' means a project under the 
        dual-use technology program.
            (3) The term ``science and technology program'' means a 
        program of a military department under which basic research, 
        applied research, or advanced technology development is carried 
        out.

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

    There is hereby authorized to be appropriated for fiscal year 1997 
the amount of $314,313,000 for the Defense Special Weapons Agency, of 
which--
            (1) $7,900,000 is for procurement;
            (2) $218,330,000 is for research, development, test, and 
        evaluation; and
            (3) $88,083,000 is for operations and maintenance.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available for 
space launch modernization for purposes and in amounts as follows:
            (1) For the Evolved Expendable Launch Vehicle program, 
        $44,457,000.
            (2) For a competitive reusable launch vehicle program 
        (program element 63401F), $25,000,000.

    (b) Limitations.--(1) Of the funds made available for the reusable 
launch vehicle program pursuant to subsection (a)(2), the total amount 
obligated for such purpose may not exceed the total amount allocated in 
the fiscal year 1997 current operating plan of the National Aeronautics 
and Space Administration for the Reusable Space Launch program of the 
National Aeronautics and Space Administration.
    (2) Of the funds made available for the Evolved Expendable Launch 
Vehicle program pursuant to subsection (a)(1), the total amount 
obligated for such purpose may not exceed $20,000,000 until the 
Secretary of Defense certifies to Congress that the Secretary has made 
available for obligation the funds, if any, that are made available for 
the Reusable Launch Vehicle program pursuant to subsection (a)(2).
    (c) <<NOTE: Plans.>>  Coordination of Engine Testing.--Not later 
than 90 days after the date of the enactment of this Act, the Secretary 
of Defense and the Administrator of the National Aeronautics and Space

[[Page 110 STAT. 2453]]

Administration shall submit to Congress a joint plan for coordinating 
and eliminating unnecessary duplication in the operations and planned 
improvements of rocket engine and rocket engine component test 
facilities managed by the Department of the Air Force and the National 
Aeronautics and Space Administration. The plan shall provide, to the 
extent practical, for the development of commonly funded and commonly 
operated facilities.

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

    (a) Funding.--Funds appropriated pursuant to the authorization of 
appropriations in section 201(3) are authorized to be made available for 
the Space-Based Infrared System program for purposes and in amounts as 
follows:
            (1) For Space Segment High, $173,290,000.
            (2) For Space Segment Low (the Space and Missile Tracking 
        System), $247,221,000.
            (3) For Cobra Brass, $6,930,000.

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

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

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

    (a) Amount for Program.--Of the amount authorized to be appropriated 
under section 201(3), $50,000,000 shall be available for the Clementine 
2 micro-satellite near-Earth asteroid interception mission.
    (b) <<NOTE: Certification.>>  Limitation.--Of the funds authorized 
to be appropriated pursuant to this Act for the global positioning 
system (GPS) Block II F Satellite system, not more than $25,000,000 may 
be obligated until the Secretary of Defense certifies to Congress that--
            (1) funds appropriated for fiscal year 1996 for the 
        Clementine 2 Micro-Satellite development program have been 
        obligated in accordance with Public Law 104-106 and the Joint 
        Explanatory Statement of the Committee of Conference 
        accompanying S. 1124 (House Report 104-450 (104th Congress, 
        second session)); and
            (2) the Secretary has made available for obligation the 
        funds appropriated for fiscal year 1997 for the purpose 
        specified in subsection (a).
SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V-22 OSPREY AIRCRAFT.

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

[[Page 110 STAT. 2454]]

    (b) Report to Congress.--In exercising the waiver authority in 
section 2366(c) of title 10, United States Code, the Secretary shall 
submit to Congress a report explaining how the Secretary plans to 
evaluate the survivability of the V-22 Osprey aircraft system and 
assessing possible alternatives to realistic survivability testing of 
the system.
    (c) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the V-22 
Osprey aircraft would be unreasonably expensive and impractical, the 
Secretary shall require that components critical to the survivability of 
the V-22 Osprey aircraft be subjected to live-fire testing under an 
alternative live-fire testing program that, by reason of the number of 
such components tested and the realism of the threat environments under 
which the components are tested, will yield test results that provide a 
sufficient basis for drawing meaningful conclusions about the 
survivability of V-22 Osprey aircraft.
    (d) Funding.--The funds required to carry out any alternative live-
fire testing of the V-22 Osprey aircraft system shall be made available 
from amounts appropriated for the V-22 Osprey program.

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

    (a) Authority for Retroactive Waiver.--The Secretary of Defense may, 
in accordance with section 2366(c) of title 10, United States Code, 
waive for the F-22 aircraft program the survivability tests required by 
that section, notwithstanding that such program has entered engineering 
and manufacturing development.
    (b) Alternative Survivability Test Requirements.--If the Secretary 
of Defense submits in accordance with section 2366(c)(1) of title 10, 
United States Code, a certification that live-fire testing of the F-22 
aircraft would be unreasonably expensive and impractical, the Secretary 
shall require that components and subsystems critical to the 
survivability of the F-22 aircraft be subjected to live-fire testing 
under an alternative live-fire testing program that, by reason of the 
number of such components and subsystems tested and the realism of the 
threat environments under which the components and subsystems are 
tested, will yield test results that provide a sufficient basis for 
drawing meaningful conclusions about the survivability of F-22 aircraft.
    (c) Funding.--The funds required to carry out any alternative live-
fire testing of the F-22 aircraft system shall be made available from 
amounts appropriated for the F-22 program.
SEC. 216. LIMITATION ON FUNDING FOR F-16 TACTICAL MANNED 
                        RECONNAISSANCE AIRCRAFT.

    (a) <<NOTE: Effective date.>>  Limitation.--Effective on the date of 
the enactment of this Act, not more than $50,000,000 (in fiscal year 
1997 constant dollars) may be obligated or expended for--
            (1) research, development, test, and evaluation for, and 
        acquisition and modification of, the F-16 tactical manned 
        reconnaissance aircraft program; and
            (2) costs associated with the termination of such program.

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

[[Page 110 STAT. 2455]]

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

    (a) Review and Report.--The Secretary of Defense shall direct the 
Cost Analysis Improvement Group in the Office of the Secretary of 
Defense to review the F-22 aircraft program, analyze and estimate the 
production costs of the program, and submit to the Secretary a report on 
the results of the review.
    (b) Content of Report.--The report shall include--
            (1) a comparison of--
                    (A) the results of the review, with
                    (B) the results of the last independent estimate of 
                production costs of the program that was prepared by the 
                Cost Analysis Improvement Group in July 1991; and
            (2) a description of any major changes in programmatic 
        assumptions that have occurred since the estimate referred to in 
        paragraph (1)(B) was made, including any major change in 
        assumptions regarding the program schedule, the quantity of 
        aircraft to be developed and acquired, and the annual rates of 
        production, together with
an assessment of the effects of such changes on the program.

    (c) Submission of Report.--Not later than March 30, 1997, the 
Secretary shall submit the report to the congressional defense 
committees, together with the Secretary's views on the matters covered 
by the report.
    (d) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 92 percent of the funds appropriated for the F-22 aircraft 
program pursuant to the authorization of appropriations in section 
103(1) may be expended until the Secretary of Defense submits the report 
required under this section.

SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

    (a) Annual Report.--(1) At the same time that the President submits 
the budget for a fiscal year to Congress pursuant to section 1105(a) of 
title 31, United States Code, the Secretary of Defense shall submit to 
Congress a report on event-based decisionmaking for the F-22 aircraft 
program for that fiscal year. The Secretary shall submit the report for 
fiscal year 1997 not later than October 1, 1996.
    (2) The report for a fiscal year shall include the following:
            (A) A discussion of each decision known within the 
        Department of Defense as an ``event-based decision'' that is 
        expected to be made during that fiscal year regarding whether 
        the F-22 program is to proceed into a new phase or into a new 
        administrative subdivision of a phase.
            (B) The criteria known within the Department of Defense as 
        ``exit criteria'' to be applied, for purposes of making the 
        event-based decision, in determining whether the F-22 aircraft 
        program has demonstrated the specific progress necessary for 
        proceeding into the new phase or administrative subdivision of a 
        phase.

    (b) Report on Event-Based Decisions.--Not later than 30 days after 
an event-based decision has been made for the F-22 aircraft program, the 
Secretary of Defense shall submit to Congress a report on the decision. 
The report shall include the following:
            (1) A discussion of the commitments made, and the 
        commitments to be made, under the program as a result of the 
        decision.
            (2) The exit criteria applied for purposes of the decision.

[[Page 110 STAT. 2456]]

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

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

    (a) Report on Program.--Not later than March 30, 1997, the Secretary 
of Defense shall submit to the congressional defense committees a report 
on the F/A-18E/F aircraft program.
    (b) Content of Report.--The report shall contain the 
following:
            (1) A review of the F/A-18E/F aircraft program.
            (2) An analysis and estimate of the production costs of the 
        program for the total number of aircraft realistically expected 
        to be procured at each of three annual production rates as 
        follows:
                    (A) 18 aircraft.
                    (B) 24 aircraft.
                    (C) 36 aircraft.
            (3) A comparison of the costs and benefits of the program 
        with the costs and benefits of the F/A-18C/D aircraft program 
        taking into account the operational combat effectiveness of the 
        aircraft.

    (c) Limitation on Use of Funds Pending Submission of Report.--Not 
more than 90 percent of the funds authorized to be appropriated by this 
Act for the procurement of F/A-18E/F aircraft may be obligated or 
expended for procurement of such aircraft before the date that is 30 
days after the date on which the congressional defense committees 
receive the report required under subsection (a).

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

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, $602,069,000 
shall be available only for advanced technology development for the 
Joint Advanced Strike Technology (JAST) program. Of that amount--
            (1) $259,833,000 shall be available only for program element 
        63800N in the budget of the Department of Defense for fiscal 
        year 1997;
            (2) $263,836,000 shall be available only for program element 
        63800F in the budget of the Department of Defense for fiscal 
        year 1997; and
            (3) $78,400,000 shall be available only for program element 
        63800E in the budget of the Department of Defense for fiscal 
        year 1997.

    (b) Analysis of Force Structure.--Of the amounts authorized to be 
appropriated by section 201 for the Joint Advanced Strike Technology 
program, up to $10,000,000 shall be available for the conduct of an 
analysis by the Institute for Defense Analyses of the following:
            (1) The weapon systems force structure required to meet the 
        anticipated range of threats projected by the intelligence 
        community for the period 2000 through 2025.
            (2) Alternative force mixes, including, at a minimum, the 
        following force mixes:
                    (A) Joint Strike Fighter derivative aircraft; 
                remanufactured AV-8 aircraft; F-18C/D, F-18E/F, AH-64, 
                AH-1W, RAH-66, F-14, F-16, F-15, F-117, F-22, B-1, B-2, 
                and

[[Page 110 STAT. 2457]]

                B-52 aircraft; and air-to-surface and surface-to-surface 
                weapons systems.
                    (B) Joint Strike Fighter derivative aircraft; 
                remanufactured AV-8 aircraft; F-18C/D, F-18E/F, F-14, F-
                16, F-15, F-117, and F-22 aircraft; and air-to-surface 
                and surface-to-surface weapons systems.
            (3) Cost and operational effectiveness of the alternative 
        force mixes analyzed under paragraph (2), including
sensitivity analyses related to system performance, costs, threats, and 
force employment scenarios.
            (4) Required operational capability dates of systems not yet 
        in production for the force mixes analyzed under paragraph (2).
            (5) Affordability, commonality, and roles and missions 
        considerations related to the alternative force mixes analyzed 
        under paragraph (2).

    (c) <<NOTE: Reports.>>  Cost Review of Force Structure Analysis.--
The Secretary of Defense shall direct the Cost Analysis Improvement 
Group in the Office of the Secretary of Defense to review cost estimates 
made under the analysis conducted under subsection (b) and submit to the 
Secretary a report on the results of the review. The report may include 
comments and additional cost sensitivity analyses.

    (d) Briefing and Report.--(1) Not later than November 15, 1996, the 
Secretary of Defense shall make available to the congressional defense 
committees a briefing on the plan and assumptions for the analysis to be 
conducted under subsection (b).
    (2) Not later than May 15, 1997, the Secretary of Defense shall 
submit to the congressional defense committees a report containing a 
copy of the analysis conducted under subsection (b) and of the cost 
review conducted under subsection (c), together with the views of the 
Secretary on such analysis and cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

    (a) Procurement Funding Request.--The funding request for 
procurement for unmanned aerial vehicles for any fiscal year shall be 
set forth under the funding requests for the military departments in the 
budget of the Department of Defense.
    (b) <<NOTE: Effective date.>>  Transfer of Program Management.--
Program management for the Predator Unmanned Aerial Vehicle, and 
programmed funding for such vehicle for fiscal years 1998, 1999, 2000, 
2001, and 2002 (as set forth in the future-years defense program), shall 
be transferred to the Department of the Air Force, effective October 1, 
1996, or the date of the enactment of this Act, whichever is later.

    (c) Prohibition on Providing Operating Capability from Naval 
Vessels.--No funds authorized to be appropriated by this Act may be 
obligated for purposes of providing the capability of the Predator 
Unmanned Aerial Vehicle to operate from naval 
vessels.

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

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

[[Page 110 STAT. 2458]]

the original contracts, but must instead be carried out under another 
contract that is awarded using competitive procedures.

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

    (a) Study Required.--The Secretary of Defense shall perform a study 
of the operational requirements for vessel self-defense for the Cyclone 
class patrol craft and a comparative evaluation of the potential means 
for meeting the operational requirements for self-defense of the craft. 
The study shall consider the range of operational scenarios in which the 
craft is expected to be employed.
    (b) Systems To Be Evaluated.--The study under subsection (a) shall 
consider those self-defense systems that could be employed aboard the 
Cyclone class patrol craft, including the Barak ship self-defense 
missile system.
    (c) Report.--Not later than March 31, 1997, the Secretary shall 
submit to Congress a report containing the results of the study under 
subsection (a).
SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF ENHANCED 
                        FIBER OPTIC GUIDED MISSILE (EFOG-M) 
                        SYSTEM.

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

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

    (a) Funding Authorization.--Of the amount authorized to be 
appropriated under section 201(1) for the Army for Other Missile Product 
Improvement Programs, $9,000,000 is authorized as specified in 
subsection (b) for completion of the Hydra-70 product improvement 
program authorized for fiscal year 1996.
    (b) Authorized Actions.--Funding is authorized to be appropriated 
for the following:
            (1) Procurement for test and flight qualification of at 
        least one nondevelopmental item 2.75-inch composite rocket motor 
        propellant type, along with other nondevelopmental item 
        candidate motors that use composite propellant as the propulsion 
        component.
            (2) Platform integration, including additional quantities of 
        the motor chosen for operational certification on the Apache 
        attack helicopter.

    (c) Definition.--In this section, the term ``nondevelopmental item'' 
has the meaning provided in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403).
SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT 
                        CENTERS.

    (a) Centers Covered.--Funds authorized to be appropriated for the 
Department of Defense for fiscal year 1997 under section 201 may be 
obligated to procure work from a federally funded research and 
development center (in this section referred to as an ``FFRDC'') only in 
the case of a center named in the report required by subsection (b) and, 
in the case of such a center, only in an amount not in excess of the
amount of the proposed funding level set forth for that center in such 
report.

    (b) Report on Allocations for Centers.--(1) Not later than 30 days 
after the date of the enactment of this Act, the Secretary

[[Page 110 STAT. 2459]]

of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report containing--
            (A) the name of each FFRDC from which work is proposed to be 
        procured for the Department of Defense for fiscal year 1997;
            (B) for each such center, the proposed funding level and the 
        estimated personnel level for fiscal year 1997; and
            (C) for each such center, an unambiguous definition of the 
        unique core competencies required to be maintained for fiscal 
        year 1997.

    (2) The total of the proposed funding levels set forth in the report 
for all FFRDCs may not exceed the amount set forth in subsection (d).
    (c) Limitation Pending Submission of Report.--Not more than 15 
percent of the funds authorized to be appropriated for the Department of 
Defense for fiscal year 1997 for FFRDCs under section 201 may be 
obligated to procure work from an FFRDC until the Secretary of Defense 
submits the report required by subsection (b).
    (d) Funding.--(1) Subject to paragraph (2), of the amounts 
authorized to be appropriated by section 201, not more than a total of 
$1,214,650,000 may be obligated to procure services from the FFRDCs 
named in the report required by subsection (b).
    (2) The limitation in paragraph (1) does not apply to funds 
obligated for the procurement of equipment for FFRDCs.
    (e) Authority To Waive Funding Limitation.--The Secretary of Defense 
may waive the limitation regarding the maximum funding amount that 
applies under subsection (a) to an FFRDC. <<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.
SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, 
                        ROCKETS, AND EXPLOSIVES.

    (a) Establishment of Conventional Munitions, Rockets, and Explosives 
Demilitarization Program.--The Secretary of Defense shall establish an 
integrated program for the development and demonstration of technologies 
for the demilitarization and disposal of conventional munitions, 
rockets, and explosives in a manner that complies with applicable 
environmental laws.
    (b) <<NOTE: Effective date.>>  Duration of Program.--The program 
established pursuant to subsection (a) shall be in effect for a period 
of at least five years, beginning with fiscal year 1997.

    (c) Funding.--Of the amount authorized to be appropriated in section 
201, $15,000,000 is authorized to be appropriated for the program 
established pursuant to subsection (a). The funding request for the 
program shall be set forth separately in the budget

[[Page 110 STAT. 2460]]

justification documents for the budget of the Department of Defense for 
each fiscal year during which the program is in effect.
    (d) Reports.--The Secretary of Defense shall submit to Congress a 
report on the plan for the program established pursuant to subsection 
(a) at the same time the President submits to Congress the budget for 
fiscal year 1998. The Secretary shall submit an updated version of such 
report, setting forth in detail the progress of the program, at the same 
time the President submits the budget for each fiscal year after fiscal 
year 1998 during which the program is in effect.
SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED RESEARCH 
                        PROJECTS AGENCY RELATING TO CHEMICAL AND 
                        BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

    (a) Authority.--Section 1701(c) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 
1853; 50 U.S.C. 1522) is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Director of the Defense Advanced Research Projects Agency 
may conduct a program of basic and applied research and advanced 
technology development on chemical and biological warfare defense 
technologies and systems. In conducting such program, the Director shall 
seek to avoid unnecessary duplication of the activities under the 
program with chemical and biological warfare defense activities of the 
military departments and defense agencies and shall coordinate the 
activities under the program with those of the military departments and 
defense agencies.''.
    (b) Funding.--Section 1701(d) of such Act is amended--
            (1) in paragraph (1), by striking out ``military 
        departments'' and inserting in lieu thereof ``Department of 
        Defense'';
            (2) in paragraph (2), by inserting after ``requests for the 
        program'' in the first sentence the following: ``(other than for 
        activities under the program conducted by the Defense Advanced 
        Research Projects Agency under subsection (c)(2))'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3) The program conducted by the Defense Advanced Research 
Projects Agency under subsection (c)(2) shall be set forth as a separate 
program element in the budget of that agency.''.
SEC. 229. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF 
                        UNITED STATES TO PREVENT ILLEGAL 
                        IMPORTATION OF NUCLEAR, BIOLOGICAL, AND 
                        CHEMICAL WEAPONS.

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

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

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

[[Page 110 STAT. 2461]]

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

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to the 
Department of Defense under section 201(4), $186,200,000 shall be 
available for the Counterproliferation Support Program, of which 
$75,000,000 shall be available for a tactical antisatellite technologies 
program.
    (b) Additional Authority To Transfer Authorizations.--(1) In 
addition to the transfer authority provided in section 1001, upon 
determination by the Secretary of Defense that such action is necessary 
in the national interest, the Secretary may transfer amounts of 
authorizations made available to the Department of Defense in this 
division for fiscal year 1997 to counterproliferation programs, 
projects, and activities identified as areas for progress by the 
Counterproliferation Program Review Committee established by section 
1605 of the National Defense Authorization Act for Fiscal Year 1994 (22 
U.S.C. 2751 note). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations transferred under the 
authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (B) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

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

    (c) Limitation on Use of Funds for Technical Studies and Analyses 
Pending Release of Funds.--(1) None of the funds authorized to be 
appropriated to the Department of Defense for fiscal year 1997 for 
program element 605104D, relating to technical studies and analyses, may 
be obligated or expended until the funds referred to in paragraph (2) 
have been released to the program manager of the tactical anti-satellite 
technology program for implementation of that program.
    (2) The funds for release referred to in paragraph (1) are as 
follows:
            (A) Funds authorized to be appropriated by section 218(a) of 
        the National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106; 110 Stat. 222) that are available for the 
        program referred to in paragraph (1).
            (B) Funds authorized to be appropriated to the Department 
        for fiscal year 1997 by this Act for the Counterproliferation

[[Page 110 STAT. 2462]]

        Support Program that are to be made available for that program.

             Subtitle C--Ballistic Missile Defense Programs

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

    (a) Program Amounts.--Of the amount appropriated pursuant to section 
201(4), the following amounts may be obligated for the following systems 
managed by the Ballistic Missile Defense Organization:
            (1) For the Theater High Altitude Area Defense (THAAD) 
        System, $621,798,000.
            (2) For the Navy Upper Tier (Theater Wide) system, 
        $304,171,000.
            (3) For the National Missile Defense System, $858,437,000.
            (4) For the Corps Surface-to-Air Missile (SAM)/Medium 
        Extended Air Defense System (MEADS), $56,200,000.

    (b) <<NOTE: Certification.>>  Limitation.--None of the funds 
appropriated or otherwise made available for the Department of Defense 
pursuant to this or any other Act may be obligated or expended by the 
Office of the Under Secretary of Defense for Acquisition and Technology 
for official representation activities, or related activities, until the 
Secretary of Defense certifies to Congress that--
            (1) the Secretary has made available for obligation the 
        funds provided under subsection (a) for the purposes specified 
        in that subsection and in the amounts appropriated pursuant to 
        that subsection; and
            (2) the Secretary has included the Navy Upper Tier theater 
        missile defense system in the theater missile defense core 
        program.

    (c) Limitations.--Not more than $15,000,000 of the amount available 
for the Corps SAM/MEADS program under
subsection (a) may be obligated until the Secretary of Defense submits 
to the congressional defense committees the following:
            (1) An initial program estimate for the Corps SAM/MEADS 
        program, including a tentative schedule of major milestones and 
        an estimate of the total program cost through initial 
        operational capability.
            (2) <<NOTE: Reports.>>  A report on the options associated 
        with the use of existing systems, technologies, and program 
        management mechanisms to satisfy the requirement for the Corps 
        surface-to-air missile, including an assessment of cost and 
        schedule implications in relation to the program estimate 
        submitted under paragraph (1).
            (3) <<NOTE: Certification.>>  A certification that there 
        will be no increase in overall United States funding commitment 
        to the project definition and validation phase of the Corps SAM/
        MEADS program as a result of the withdrawal of France from 
        participation in the program.
SEC. 242. CERTIFICATION <<NOTE: President.>> OF CAPABILITY OF 
                        UNITED STATES TO DEFEND AGAINST SINGLE 
                        BALLISTIC MISSILE.

    Not later than 15 days after the date of the enactment of this Act, 
the President shall submit to Congress a certification

[[Page 110 STAT. 2463]]

in writing stating specifically whether or not the United States has the 
military capability (as of the time of the certification) to intercept 
and destroy a single ballistic missile launched at the territory of the 
United States.
SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PRO-
                        LIFERATION.

    The Secretary of Defense shall submit to Congress a report on 
ballistic missile defense and the proliferation of weapons of mass 
destruction, including nuclear, chemical, and biological weapons, and 
the missiles that can be used to deliver them. The report shall be 
submitted not later than December 31, 1996, and shall include the 
following:
            (1) An assessment of how United States theater missile 
        defenses contribute to United States efforts to prevent 
        proliferation, including an evaluation of the specific effect 
        United States theater missile defense systems can have on 
        dissuading other states from acquiring ballistic missiles.
            (2) An assessment of how United States national missile 
        defenses contribute to United States efforts to prevent 
        proliferation.
            (3) An assessment of the effect of the lack of national 
        missile defenses on the desire of other states to acquire 
        ballistic missiles and an evaluation of the types of missiles 
        other states might seek to acquire as a result.
            (4) A detailed review of the linkages between missile 
        defenses (both theater and national) and each of the categories 
        of counterproliferation activities identified by the Secretary 
        of Defense as part of the Defense Counterproliferation 
        Initiative announced by the Secretary in December 1993.
            (5) A description of how theater and national ballistic 
        missile defenses can augment the effectiveness of other 
        counterproliferation tools.
SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE DEFENSE 
                        PROGRAM.

    Section 224(b) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (10 U.S.C. 2431 note) is amended--
            (1) by striking out paragraphs (3), (4), and (10);
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (3) and (4), respectively;
            (3) by redesignating paragraph (7) as paragraph (5) and in 
        that paragraph by striking out ``of the Soviet Union'' and ``for 
        the Soviet Union'';
            (4) by redesignating paragraph (8) as paragraph (6); and
            (5) by redesignating paragraph (9) as paragraph (7) and in 
        that paragraph--
                    (A) by striking out ``of the Soviet Union'' in 
                subparagraph (A);
                    (B) by striking out subparagraphs (C) through (F); 
                and
                    (C) by redesignating subparagraph (G) as 
                subparagraph (C).

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

    Not later than 120 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on National

[[Page 110 STAT. 2464]]

Security of the House of Representatives a report on the following 
matters regarding the National Missile Defense Plan of the Air Force:
            (1) The cost and operational effectiveness of a system that 
        could be developed pursuant to that plan.
            (2) The arms control implications of such a system.
            (3) The growth potential of such a system to meet future 
        threats.
            (4) The recommendations of the Secretary for improvements to 
        that plan.

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

    The Secretary of Defense shall ensure that any National Missile 
Defense system deployed by the United States is capable of defeating the 
threat posed by the Taepo Dong II missile of North Korea.
SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR 
                        EMPLOYMENT OF ESTABLISHMENT OF NATIONAL 
                        MISSILE DEFENSE JOINT PROGRAM OFFICE.

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

SEC. 248. ABM TREATY DEFINED.

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

                        Subtitle D--Other Matters

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

    (a) Allocation of Funds.--The Secretary of the Air Force shall 
allocate funds authorized to be appropriated by this title and title III 
of this Act for maintenance and repair of real property at military 
installations of the Department of the Air Force without regard to 
whether the installation is supported with funds authorized by this 
title or title III of this Act.
    (b) Mixing of Funds Prohibited on Individual Projects.--The 
Secretary of the Air Force may not combine funds authorized to be 
appropriated by this title and funds authorized to be appropriated by 
title III for an individual project for maintenance and repair of real 
property at a military installation of the Department of the Air Force.

[[Page 110 STAT. 2465]]

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

    Not later than March 30, 1997, the Comptroller General shall submit 
to Congress and to the Secretary of Defense a report setting forth the 
following with respect to the Small Business Innovation Research Program 
(as defined by section 2491(11) of title 10, United States Code):
            (1) An assessment of whether there has been a demonstrable 
        reduction in the quality of research performed under funding 
        agreements awarded by the Department of Defense under the 
        program since fiscal year 1995.
            (2) An assessment of the degree to which competitive 
        procedures are being followed throughout the military 
        departments and defense agencies in awarding funding agreements 
        under the program.
            (3) An assessment of the degree to which technologies 
        developed through the program are or are likely to be used in 
        military projects and programs.
SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
                        PROGRAM.

    Section 802(c) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701; 10 U.S.C. 2358 note) is 
amended by striking out ``fiscal years before the fiscal year in which 
the institution submits a proposal'' and inserting in lieu thereof 
``most recent fiscal years for which complete statistics are available 
when proposals are requested''.
SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
                        COMPETITIVE RESEARCH.

    Section 257(d) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2705; 10 U.S.C. 2358 note) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking out ``Director of the National 
                Science Foundation'' and inserting in lieu thereof 
                ``Under Secretary of Defense for Acquisition and 
                Technology''; and
                    (B) by striking out ``and shall notify the Director 
                of Defense Research and Engineering of the States so 
                designated''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking out ``Director of the National 
                      Science Foundation'' and inserting in lieu thereof 
                      ``Under Secretary of Defense for Acquisition and 
                      Technology''; and
                          (ii) by striking out ``as determined by the 
                      Director'' and inserting in lieu thereof ``as 
                      determined by the Under Secretary'';
                    (B) in subparagraph (A), by striking out ``(to be 
                determined in consultation with the Secretary of 
                Defense);'' and inserting in lieu thereof ``; and'';
                    (C) by striking out ``; and'' at the end of 
                subparagraph (B) and inserting in lieu thereof a period; 
                and
                    (D) by striking out subparagraph (C).

[[Page 110 STAT. 2466]]

SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE 
                        PROCEDURES FOR THE AWARD OF CERTAIN 
                        CONTRACTS TO COLLEGES AND UNIVERSITIES.

    Section 2361 of title 10, United States Code, is amended by striking 
out subsection (c).
SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY 
                        INFORMATION TO PRIVATE INDUSTRY.

    (a) Program Required.--The Secretary of Defense shall carry out a 
pilot program to demonstrate online transfers of information on defense 
technologies to businesses in the private sector through an interactive 
data network involving Small Business Development Centers of 
institutions of higher education.
    (b) Computerized Data Base of Defense Technologies.--
(1) <<NOTE: Contracts.>>  Under the pilot program, the Secretary shall 
enter into an agreement with the head of an eligible institution of 
higher education that provides for such institution--
            (A) to develop and maintain a computerized data base of 
        information on defense technologies;
            (B) to make such information available online to--
                    (i) businesses; and
                    (ii) other institutions of higher education entering 
                into partnerships with the Secretary under subsection 
                (c).

    (2) The online accessibility may be established by means of any of, 
or any combination of, the following:
            (A) Digital teleconferencing.
            (B) International Signal Digital Network lines.
            (C) Direct modem hookup.

    (c) Partnership <<NOTE: Contracts.>> Network.--Under the pilot 
program, the Secretary shall seek to enter into agreements with the 
heads of several eligible institutions of higher education having strong 
business education programs to provide for the institutions of higher 
education entering into such agreements--
            (1) to establish interactive computer links with the data 
        base developed and maintained under subsection (b); and
            (2) to assist the Secretary in making information on defense 
        technologies available online to the broadest practicable 
        number, types, and sizes of businesses.

    (d) Eligible Institutions.--For the purposes of this section, an 
institution of higher education is eligible to enter into an agreement 
under subsection (b) or (c) if the institution has a Small Business 
Development Center.
    (e) Defense Technologies Covered.--(1) The Secretary shall designate 
the technologies to be covered by the pilot program from among the 
existing and experimental technologies that the Secretary determines--
            (A) are useful in meeting Department of Defense needs; and
            (B) should be made available under the pilot program to 
        facilitate the satisfaction of such needs by private sector 
        sources.

    (2) Technologies covered by the program should include technologies 
useful for defense purposes that can also be used for nondefense 
purposes (with or without modification).
    (f) Definitions.--In this section:

[[Page 110 STAT. 2467]]

            (1) The term ``Small Business Development Center'' means a 
        small business development center established pursuant to 
        section 21 of the Small Business Act (15 U.S.C. 648).
            (2) The term ``defense technology'' means a technology 
        designated by the Secretary of Defense under subsection (d).
            (3) The term ``partnership'' means an agreement entered into 
        under subsection (c).

    (g) Termination of Pilot Program.--The pilot program shall terminate 
one year after the Secretary enters into an agreement under subsection 
(b).
    (h) Authorization of Appropriations.--Of the amount authorized to be 
appropriated under section 201(4) for university research initiatives, 
$3,000,000 is available for the pilot program.
SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND 
                        GRANTS.

    (a) Conditions for Use of Authority.--Subsection (e) of section 2371 
of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B);
            (2) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A), as so redesignated;
            (3) by striking out ``; and'' at the end of subparagraph 
        (B), as so redesignated, and inserting in lieu thereof a period;
            (4) by inserting ``(1)'' after ``(e) Conditions.--''; and
            (5) by striking out paragraph (3) and inserting in lieu 
        thereof the following:

    ``(2) A cooperative agreement containing a clause under subsection 
(d) or a transaction authorized by subsection (a) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or 
appropriate.''.
    (b) Revised Requirement for Annual Report.--Section 2371 of such 
title is amended by striking out subsection (h) and inserting in lieu 
thereof the following:
    ``(h) Annual Report.--(1) Not later than 90 days after the end of 
each fiscal year, the Secretary of Defense shall submit to the Committee 
on Armed Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the use by the Department of 
Defense during such fiscal 
year of--
            ``(A) cooperative agreements authorized under section 2358 
        of this title that contain a clause under subsection (d); and
            ``(B) transactions authorized by subsection (a).

    ``(2) The report shall include, with respect to the cooperative 
agreements and other transactions covered by the report, the 
following:
            ``(A) The technology areas in which research projects were 
        conducted under such agreements or other transactions.
            ``(B) The extent of the cost-sharing among Federal 
        Government and non-Federal sources.
            ``(C) The extent to which the use of the cooperative 
        agreements and other transactions--
                    ``(i) has contributed to a broadening of the 
                technology and industrial base available for meeting 
                Department of Defense needs; and

[[Page 110 STAT. 2468]]

                    ``(ii) has fostered within the technology and 
                industrial base new relationships and practices that 
                support the national security of the United States.
            ``(D) The total amount of payments, if any, that were 
        received by the Federal Government during the fiscal year 
        covered by the report pursuant to a clause described in 
        subsection (d) that was included in the cooperative agreements 
        and other transactions, and the amount of such payments, if any, 
        that were credited to each account established under subsection 
        (f).''.

    (c) Division of Section Into Distinct Provisions by Subject 
Matter.--(1) Chapter 139 of title 10, United States Code, is amended--
            (A) by inserting before the last subsection of section 2371 
        (relating to cooperative research and development agreements 
        under the Stevenson-Wydler Technology Innovation Act of 1980) 
        the following:
``Sec. 2371a. Cooperative research and development agreements 
                      under Stevenson-Wydler Technology Innovation 
                      Act of 1980'';
            (B) in section 2371a (as designated by the amendment made by 
        subparagraph (A)), by striking out ``(i) Cooperative Research 
        and Development Agreements Under Stevenson-Wydler Technology 
        Innovation Act of 1980.--''; and
            (C) in the table of sections at the beginning of such 
        chapter, by inserting after the item relating to section 2371 
        the following:

``2371a. Cooperative research and development agreements under 
              Stevenson-Wydler Technology Innovation Act of 1980.''.

    (2) Section 2358(d) of such title is amended by striking out 
``section 2371'' and inserting in lieu thereof ``sections 2371 and 
2371a''.

SEC. 268. DESALTING TECHNOLOGIES.

    (a) Findings.--Congress makes the following findings:
            (1) Access to scarce fresh water is likely to be a cause of 
        future military conflicts in the Middle East and has a direct 
        impact on stability and security in the region.
            (2) The Middle East is an area of vital and strategic 
        importance to the United States.
            (3) The United States has played a military role in the 
        Middle East, most recently in the Persian Gulf War, and may 
        likely be called upon again to deter aggression in the region.
            (4) United States troops have used desalting technologies to 
        guarantee the availability of fresh water in past deployments in 
        the Middle East.
            (5) Adequate, efficient, and cheap access to high-quality 
        fresh water will be vital to maintaining the readiness and 
        sustainability of troops of both the United States and its 
        allies.

    (b) Sense of Congress.--It is the sense of Congress that, as 
improved access to fresh water will be an important factor in helping 
prevent future conflicts in the Middle East, the United States should, 
in cooperation with its allies, promote and invest in technologies to 
reduce the costs of converting saline water into fresh water.

[[Page 110 STAT. 2469]]

    (c) Funding for Research and Development.--Of the amounts authorized 
to be appropriated by this title, the Secretary shall place greater 
emphasis on making funds available for research and development into 
efficient and economical processes and methods for converting saline 
water into fresh water.
SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT USED IN 
                        OLYMPIC GAMES.

    (a) Evaluation.--The Secretary of Defense shall evaluate the digital 
video network equipment used in the 1996 Olympic games to determine 
whether such equipment would be the most appropriate equipment for use 
as a test bed for the military application of commercial off-the-shelf 
advanced technology linking multiple continents, multiple satellites, 
and multiple theaters of operations by compressed digital audio and 
visual broadcasting technology.
    (b) Report.--Not later than April 1, 1997, the Secretary of Defense 
shall submit to Congress a report on the results of the evaluation 
conducted under subsection (a).
SEC. 270. ANNUAL <<NOTE: 10 USC 2501 note.>> JOINT WARFIGHTING 
                        SCIENCE AND TECHNOLOGY PLAN.

    (a) Annual Plan Required.--On March 1 of each year, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
plan for ensuring that the science and technology program of the 
Department of Defense supports the development of the future joint 
warfighting capabilities identified as priority requirements for the 
Armed Forces.
    (b) First Plan.--The first plan under subsection (a) shall be 
submitted not later than March 1, 1997.

         Subtitle E--National Oceanographic Partnership Program

SEC. 281. <<NOTE: 10 USC 7901 note.>>  FINDINGS.

    Congress finds the following:
            (1) The oceans and coastal areas of the United States are 
        among the Nation's most valuable natural resources, making 
        substantial contributions to economic growth, quality of life, 
        and national security.
            (2) Oceans drive global and regional climate. Hence, they 
        contain information affecting agriculture, fishing, and the 
        prediction of severe weather.
            (3) Understanding of the oceans through basic and applied 
        research is essential for using the oceans wisely and protecting 
        their limited resources. Therefore, the United States should 
        maintain its world leadership in oceanography as one key to its 
        competitive future.
            (4) Ocean research and education activities take place 
        within Federal agencies, academic institutions, and industry. 
        These entities often have similar requirements for research 
        facilities, data, and other resources (such as oceanographic 
        research vessels).
            (5) The need exists for a formal mechanism to coordinate 
        existing partnerships and establish new partnerships for the 
        sharing of resources, intellectual talent, and facilities in the

[[Page 110 STAT. 2470]]

        ocean sciences and education, so that optimal use can be made of 
        this most important natural resource for the well-being of all 
        Americans.

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    (a) Program Required.--(1) Subtitle C of title 10, United States 
Code, is amended by adding after chapter 663 the following new chapter:

        ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

``Sec.
``7901. National Oceanographic Partnership Program.
``7902. National Ocean Research Leadership Council.
``7903. Ocean Research Advisory Panel.

``Sec. 7901. National Oceanographic Partnership Program

    ``(a) Establishment.--The Secretary of the Navy shall establish a 
program to be known as the `National Oceanographic Partnership Program'.
    ``(b) Purposes.--The purposes of the program are as follows:
            ``(1) To promote the national goals of assuring national 
        security, advancing economic development, protecting quality of 
        life, and strengthening science education and communication 
        through improved knowledge of the ocean.
            ``(2) To coordinate and strengthen oceanographic efforts in 
        support of those goals by--
                    ``(A) identifying and carrying out partnerships 
                among Federal agencies, academia, industry, and other 
                members of the oceanographic scientific community in the 
                areas of data, resources, education, and communication; 
                and
                    ``(B) reporting annually to Congress on the program.

``Sec. 7902. National Ocean Research Leadership Council

    ``(a) Council.--There is a National Ocean Research Leadership 
Council (hereinafter in this chapter referred to as the `Council').
    ``(b) Membership.--The Council is composed of the following members:
            ``(1) The Secretary of the Navy.
            ``(2) The Administrator of the National Oceanic and 
        Atmospheric Administration.
            ``(3) The Director of the National Science Foundation.
            ``(4) The Administrator of the National Aeronautics and 
        Space Administration.
            ``(5) The Deputy Secretary of Energy.
            ``(6) The Administrator of the Environmental Protection 
        Agency.
            ``(7) The Commandant of the Coast Guard.
            ``(8) The Director of the Geological Survey of the 
        Department of the Interior.
            ``(9) The Director of the Defense Advanced Research Projects 
        Agency.
            ``(10) The Director of the Minerals Management Service of 
        the Department of the Interior.
            ``(11) The President of the National Academy of Sciences, 
        the President of the National Academy of Engineering, and the 
        President of the Institute of Medicine.

[[Page 110 STAT. 2471]]

            ``(12) The Director of the Office of Science and Technology.
            ``(13) The Director of the Office of Management and Budget.
            ``(14) One member appointed by the chairman from among 
        individuals who will represent the views of ocean industries.
            ``(15) One member appointed by the chairman from among 
        individuals who will represent the views of State governments.
            ``(16) One member appointed by the chairman from among 
        individuals who will represent the views of academia.
            ``(17) One member appointed by the chairman from among 
        individuals who will represent such other views as the chairman 
        considers appropriate.

    ``(c) Chairman and Vice Chairman.--(1) Except as provided in 
paragraph (2), the chairman and vice chairman of the Council shall be 
appointed every two years by a selection committee of the Council 
composed of, at a minimum, the Secretary of the Navy, the Administrator 
of the National Oceanic and Atmospheric Administration, and the Director 
of the National Science Foundation. The term of office of the chairman 
and vice chairman shall be two years. A person who has previously served 
as chairman or vice chairman may be reappointed.
    ``(2) The first chairman of the Council shall be the Secretary of 
the Navy. The first vice chairman of the Council shall be the 
Administrator of the National Oceanic and Atmospheric Administration.
    ``(d) Term of Office.--The term of office of a member of the Council 
appointed under paragraph (14), (15), (16), or (17) of subsection (b) 
shall be two years, except that any person appointed to fill a vacancy 
occurring before the expiration of the term for which his predecessor 
was appointed shall be appointed for the remainder of such term.
    ``(e) Responsibilities.--The Council shall have the following 
responsibilities:
            ``(1) To prescribe policies and procedures to implement the 
        National Oceanographic Partnership Program.
            ``(2) To review, select, and identify and allocate funds for 
        partnership projects for implementation under the program, based 
        on the following criteria:
                    ``(A) Whether the project addresses critical 
                research objectives or operational goals, such as data 
                accessibility and quality assurance, sharing of 
                resources, education, or communication.
                    ``(B) Whether the project has, or is designed to 
                have, broad participation within the oceanographic 
                community.
                    ``(C) Whether the partners have a long-term 
                commitment to the objectives of the project.
                    ``(D) Whether the resources supporting the project 
                are shared among the partners.
                    ``(E) Whether the project has been subjected to 
                adequate peer review.
            ``(3) To assess whether there is a need for a facility (or 
        facilities) to provide national centralization of oceanographic 
        data, and to establish such a facility or facilities if 
        determined necessary. In conducting the assessment, the Council 
        shall review, at a minimum, the following:
                    ``(A) The need for a national oceanographic data 
                center.
                    ``(B) The need for a national coastal data center.
                    ``(C) Accessibility by potential users of such 
                centers.

[[Page 110 STAT. 2472]]

                    ``(D) Preexisting facilities and expertise.

    ``(f) Annual Report.--Not later than March 1 of each year, the 
Council shall submit to Congress a report on the National Oceanographic 
Partnership Program. The report shall contain the following:
            ``(1) A description of activities of the program carried out 
        during the fiscal year before the fiscal year in which the 
        report is prepared, together with a list of the members of the 
        Ocean Research Advisory Panel and any working groups in 
        existence during the fiscal year covered.
            ``(2) A general outline of the activities planned for the 
        program during the fiscal year in which the report is prepared.
            ``(3) A summary of projects continued from the fiscal year 
        before the fiscal year in which the report is prepared and 
        projects expected to be started during the fiscal year in which 
        the report is prepared and during the following fiscal year.
            ``(4) A description of the involvement of the program with 
        Federal interagency coordinating entities.
            ``(5) The amounts requested, in the budget submitted to 
        Congress pursuant to section 1105(a) of title 31, United States 
        Code, for the fiscal year following the fiscal year in which the 
        report is prepared, for the programs, projects, and activities 
        of the program and the estimated expenditures under such 
        programs, projects, and activities during such following fiscal 
        year.

    ``(g) Partnership Program Office.--(1) <<NOTE: Establishment.>>  The 
Council shall establish a partnership program office for the National 
Oceanographic Partnership Program. The Council shall use competitive 
procedures in selecting an operator for the partnership program office.

    ``(2) The Council shall assign the following duties to the 
partnership program office:
            ``(A) To establish and oversee working groups to propose 
        partnership projects to the Council and advise the Council on 
        such projects.
            ``(B) To manage the process for proposing partnership 
        projects to the Council, including managing peer review of such 
        projects.
            ``(C) <<NOTE: Reports.>>  To submit to the Council an annual 
        report on the status of all partnership projects and activities 
        of the office.
            ``(D) Any additional duties for the administration of the 
        National Oceanographic Partnership Program that the Council 
        considers appropriate.

    ``(3) The Council shall supervise the performance of duties by the 
partnership program office.

    ``(h) Contract and Grant Authority.--The Council may authorize one 
or more of the departments or agencies represented on the Council to 
enter into contracts and make grants, using funds appropriated pursuant 
to an authorization of appropriations for the National Oceanographic 
Partnership Program, for the purpose of implementing the program and 
carrying out the responsibilities of the Council.

    ``(i) Establishment and Forms of Partnership Projects.--(1) A 
partnership project under the National Oceanographic Partnership Program 
may be established by any instrument that the Council considers 
appropriate, including a memorandum of under

[[Page 110 STAT. 2473]]

standing, a cooperative research and development agreement, and any 
similar instrument.
    ``(2) Projects under the program may include demonstration projects.

``Sec. 7903. Ocean Research Advisory Panel

    ``(a) Establishment.--The Council shall establish an Ocean Research 
Advisory Panel consisting of not less than 10 and not more than 18 
members appointed by the Council from among persons eminent in the 
fields of marine science or marine policy, or related fields, and who 
are representative, at a minimum, of the interests of government, 
academia, and industry.
    ``(b) Responsibilities.--The Council shall assign to the Advisory 
Panel responsibilities that the Council considers appropriate.''.
    (2) The table of chapters at the beginning of subtitle C of title 
10, United States Code, and the table of chapters at the beginning of 
part IV of such subtitle, are each amended by inserting after the item 
relating to chapter 663 the following:

``665. National Oceanographic Partnership Program................7901''.

    (b) Initial <<NOTE: 10 USC 7902 note.>> Appointments of Council 
Members.--The Secretary of the Navy shall make the appointments required 
by section 7902(b) of title 10, United States Code, as added by 
subsection (a)(1), not later than December 1, 1996.

    (c) <<NOTE: 10 USC 7903 note.>>  Initial Appointments of Advisory 
Panel Members.--The National Ocean Research Leadership Council 
established by section 7902 of title 10, United States Code, as added by 
subsection (a)(1), shall make the appointments required by section 7903 
of such title not later than January 1, 1997.

    (d) <<NOTE: 10 USC 7902 note.>>  First Annual Report of National 
Ocean Research Leadership Council.--The first annual report required by 
section 7902(f) of title 10, United States Code, as added by subsection 
(a)(1), shall be submitted to Congress not later than March 1, 1997. The 
first report shall include, in addition to the information required by 
such section, information about the terms of office, procedures, and 
responsibilities of the Ocean Research Advisory Panel established by the 
Council.

    (e) Authorization.--(1) Of the amount authorized to be appropriated 
to the Department of the Navy by section 201(2), $13,000,000 shall be 
available for the National Oceanographic Partnership Program established 
pursuant to section 7901 of title 10, United States Code, as added by 
subsection (a)(1).
    (2) Of the amount authorized to be appropriated to the Department of 
the Navy by section 301(2), $7,500,000 shall be available for such 
program.
    (f) Funding for Program Office.--Of the amount appropriated for the 
National Oceanographic Partnership Program for fiscal year 1997, at 
least $500,000, or 3 percent of the amount appropriated, whichever is 
greater, shall be available for operations of the partnership program 
office established pursuant to section 7902(g) of title 10, United 
States Code, as added by subsection (a)(1), for such fiscal year.

[[Page 110 STAT. 2474]]

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards 
                    to engage in defense-related production and 
                    services.
Sec. 312. Test programs for modernization-through-spares.

                  Subtitle C--Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on 
                    contractor 
                    reimbursement costs for response actions.
Sec. 322. Establishment of separate environmental restoration accounts 
                    for each military department.
Sec. 323. Payment of stipulated penalties assessed under CERCLA.
Sec. 324. Shipboard solid waste control.
Sec. 325. Authority to develop and implement land use plans for Defense 
                    Environmental Restoration program.
Sec. 326. Pilot program to test alternative technology for limiting air 
                    emissions during shipyard blasting and coating 
                    operations.
Sec. 327. Agreements for services of other agencies in support of 
                    environmental technology certification.
Sec. 328. Repeal of redundant notification and consultation requirements 
                    regarding remedial investigations and feasibility 
                    studies at certain installations to be closed under 
                    the base closure laws.
Sec. 329. Authority for agreements with Indian tribes for services under 
                    environmental restoration program.
Sec. 330. Authority to withhold listing of Federal facilities on 
                    National Priorities List.
Sec. 331. Clarification of meaning of uncontaminated property for 
                    purposes of transfer by the United States.
Sec. 332. Conservation and cultural activities.
Sec. 333. Navy program to monitor ecological effects of organotin.
Sec. 334. Authority to transfer contaminated Federal property before 
                    completion of required response actions.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and 
                    services to promote efficient operation and 
                    management of exchanges and morale, welfare, and 
                    recreation activities.
Sec. 342. Noncompetitive procurement of brand-name commercial items for 
                    resale in commissary stores.
Sec. 343. Prohibition of sale or rental of sexually explicit material.

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

Sec. 351. Extension of requirement for competitive procurement of 
                    printing and 
                    duplication services.
Sec. 352. Reporting requirements under demonstration project for 
                    purchase of fire, security, police, public works, 
                    and utility services from local government agencies.

                        Subtitle F--Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting 
                    functions.
Sec. 362. Training of members of the uniformed services at non-
                    Government 
                    facilities.
Sec. 363. Requirement for preparation of plan for improved operation of 
                    working-capital funds and effect of failure to 
                    produce an approved plan.
Sec. 364. Increase in capital asset threshold under Defense Business 
                    Operations Fund.

[[Page 110 STAT. 2475]]

Sec. 365. Expansion of authority to donate unusable food.
Sec. 366. Assistance to committees involved in inauguration of the 
                    President.
Sec. 367. Department of Defense support for sporting events.
Sec. 368. Storage of motor vehicle in lieu of transportation.
Sec. 369. Security protections at Department of Defense facilities in 
                    National 
                    Capital Region.
Sec. 370. Administration of midshipmen's store and other Naval Academy 
                    support activities as nonappropriated fund 
                    instrumentality.
Sec. 371. Reimbursement under agreement for instruction of civilian 
                    students at Foreign Language Institute of the 
                    Defense Language Institute.
Sec. 372. Assistance to local educational agencies that benefit 
                    dependents of 
                    members of the Armed Forces and Department of 
                    Defense civilian employees.
Sec. 373. Renovation of building for Defense Finance and Accounting 
                    Service 
                    Center, Fort Benjamin Harrison, Indiana.
Sec. 374. Food donation pilot program at service academies.
Sec. 375. Authority of Air National Guard to provide certain services at 
                    Lincoln Municipal Airport, Lincoln, Nebraska.
Sec. 376. Technical amendment regarding Impact Aid program.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $18,264,406,000.
            (2) For the Navy, $20,387,737,000.
            (3) For the Marine Corps, $2,421,007,000.
            (4) For the Air Force, $17,635,335,000.
            (5) For Defense-wide activities, $9,912,962,000.
            (6) For the Army Reserve, $1,136,436,000.
            (7) For the Naval Reserve, $858,927,000.
            (8) For the Marine Corps Reserve, $113,367,000.
            (9) For the Air Force Reserve, $1,499,553,000.
            (10) For the Army National Guard, $2,277,477,000.
            (11) For the Air National Guard, $2,711,173,000.
            (12) For the Defense Inspector General, $136,501,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,797,000.
            (14) For Environmental Restoration, Army, $356,916,000.
            (15) For Environmental Restoration, Navy, $302,900,000.
            (16) For Environmental Restoration, Air Force, $414,700,000.
            (17) For Environmental Restoration, Defense-wide, 
        $258,500,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $54,544,000.
            (19) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $796,524,000.
            (20) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $10,000,000.
            (21) For Medical Programs, Defense, $9,833,288,000.
            (22) For Cooperative Threat Reduction programs, 
        $364,900,000.
            (23) For Domestic Emergency Assistance programs, 
        $97,000,000.
            (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

[[Page 110 STAT. 2476]]

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Armed Forces and other activities and agencies of the 
Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Business Operations Fund, $947,900,000.
            (2) For the National Defense Sealift Fund, $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1997 
from the Armed Forces Retirement Home Trust Fund the sum of $57,300,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.
SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION 
                        FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 1997 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.

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

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

SEC. 305. CIVIL AIR PATROL CORPORATION.

    (a) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301 for operation and maintenance, $14,526,000 shall be 
available for the Civil Air Patrol Corporation.
    (b) Amount for Certain Operations.--Of the amount made available to 
the Civil Air Patrol Corporation pursuant to subsection (a), not less 
than 25 percent of such amount shall be reserved to cover the costs of 
search and rescue missions and disaster relief missions.
SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM 
                        ACTIVITIES.

    Of the amount authorized to be appropriated pursuant to section 301 
for operation and maintenance, $14,000,000 shall be available to the 
Secretary of Defense for activities designed to meet the antiterrorism 
responsibilities of the Department of Defense, including activities 
related to intelligence support, physical security measures, and 
education and training regarding antiterrorism. The amount made 
available by this section is in addition to amounts otherwise made 
available by this Act for antiterrorism activities.

[[Page 110 STAT. 2477]]

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

    Of the amount authorized to be appropriated pursuant to section 301, 
$5,000,000 shall be available for the immediate procurement of nonlethal 
weapons capabilities to meet existing deficiencies in inventories of 
such capabilities, of which--
            (1) $2,000,000 shall be available for the Army; and
            (2) $3,000,000 shall be available for the Marine Corps.

SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

    Of the funds authorized to be appropriated by section 301(4), 
$30,000,000 is authorized to be made available for the SR-71 contingency 
reconnaissance force.

                   Subtitle B--Depot-Level Activities

SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
                        SHIPYARDS TO ENGAGE IN DEFENSE-RELATED 
                        PRODUCTION AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1684) is amended by striking 
out ``September 30, 1996'' and inserting in lieu thereof ``September 30, 
1997''.

SEC. 312. <<NOTE: Reports.>>  TEST PROGRAMS FOR MODERNIZATION-THROUGH-
            SPARES.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of the Army shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on the steps that the Secretary has 
taken to ensure that each program included in the modernization-through-
spares program of the Army is conducted in accordance with--
            (1) the competition requirements in section 2304 of title 
        10, United States Code;
            (2) the core logistics requirements in section 2464 of such 
        title;
            (3) the public-private competition requirements in section 
        2469 of such title; and
            (4) requirements relating to contract bundling and spare 
        parts breakout in subsections (a) and (l) of section 15 of the 
        Small Business Act (15 U.S.C. 644) and regulations implementing 
        such subsections in the Defense Federal Acquisition Regulation 
        Supplement.

                  Subtitle C--Environmental Provisions

SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR REPORTS 
                        ON CONTRACTOR REIMBURSEMENT COSTS 
                        FOR RESPONSE ACTIONS.

    Section 2706(d)(1)(A) of title 10, United States Code, is amended by 
striking out ``100'' and inserting in lieu thereof ``20''.
SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION 
                        ACCOUNTS FOR EACH MILITARY DEPARTMENT.

    (a) Establishment.--(1) Section 2703 of title 10, United States 
Code, is amended to read as follows:

[[Page 110 STAT. 2478]]

``Sec. 2703. Environmental restoration accounts

    ``(a) Establishment of Accounts.--There are hereby established in 
the Department of Defense the following accounts:
            ``(1) An account to be known as the `Environmental 
        Restoration Account, Defense'.
            ``(2) An account to be known as the `Environmental 
        Restoration Account, Army'.
            ``(3) An account to be known as the `Environmental 
        Restoration Account, Navy'.
            ``(4) An account to be known as the `Environmental 
        Restoration Account, Air Force'.

    ``(b) Obligation of Authorized Amounts.--Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only in order to carry out the environmental 
restoration functions of the Secretary of Defense and the Secretaries of 
the military departments under this chapter and under any other 
provision of law. Funds so authorized shall remain available until 
expended.
    ``(c) Budget <<NOTE: President.>> Reports.--In proposing the budget 
for any fiscal year pursuant to section 1105 of title 31, United States 
Code, the President shall set forth separately the amounts requested for 
environmental restoration programs of the Department of Defense and of 
each of the military departments under this chapter and under any other 
Act.

    ``(d) Credit of Amounts Recovered.--The following amounts shall be 
credited to the appropriate environmental restoration account:
            ``(1) Amounts recovered under CERCLA for response actions.
            ``(2) Any other amounts recovered from a contractor, 
        insurer, surety, or other person to reimburse the Department of 
        Defense or a military department for any expenditure for 
        environmental response activities.

    ``(e) Payments of Fines and Penalties.--None of the funds 
appropriated to the Environmental Restoration Account, Defense, for 
fiscal years 1995 through 1999, or to any environmental restoration 
account of a military department for fiscal years 1997 through 1999, may 
be used for the payment of a fine or penalty (including any supplemental 
environmental project carried out as part of such penalty) imposed 
against the Department of Defense or a military department unless the 
act or omission for which the fine or penalty is imposed arises out of 
an activity funded by the environmental restoration account concerned 
and the payment of the fine or penalty has been specifically authorized 
by law.''.
    (2) The table of sections at the beginning of chapter 160 of title 
10, United States Code, is amended by striking out the item relating to 
section 2703 and inserting in lieu thereof the following new item:

``2703. Environmental restoration accounts.''.

    (b) References.--Any <<NOTE: 10 USC 2703 note.>> reference to the 
Defense Environmental Restoration Account in any Federal law, Executive 
Order, regulation, delegation of authority, or document shall be deemed 
to refer to the appropriate environmental restoration account 
established under section 2703(a)(1) of title 10, United States Code (as 
amended by subsection (a)(1)).

[[Page 110 STAT. 2479]]

    (c) Conforming Amendment.--Section 2705(g)(1) of title 10, United 
States Code, is amended by striking out ``the Defense Environmental 
Restoration Account established'' and inserting in lieu thereof ``the 
environmental restoration account concerned''.
    (d) Treatment <<NOTE: 10 USC 2703 note.>> of Unobligated Balances.--
Any unobligated balances that remain in the Defense Environmental 
Restoration Account under section 2703(a) of title 10, United States 
Code, as of the effective date specified in subsection (e) shall be 
transferred on such date to the Environmental Restoration Account, 
Defense, established under section 2703(a)(1) of title 10, United States 
Code (as amended by subsection (a)(1)).

    (e) Effective <<NOTE: 10 USC 2703 note.>> Date.--The amendments made 
by this section shall take effect on the later of--
            (1) October 1, 1996; or
            (2) the date of the enactment of this Act.
SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER CERCLA.

    (a) Authority.--The Secretary of Defense may pay the 
following:
            (1) Stipulated civil penalties, to the Hazardous Substance 
        Superfund established under section 9507 of the Internal Revenue 
        Code of 1986, in amounts, and using funds, as follows:
                    (A) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Army, established 
                under section 2703(a)(2) of title 10, United States Code 
                (as amended by section 322 of this Act)--
                          (i) not more than $34,000 assessed against 
                      Fort Riley, Kansas, under CERCLA; and
                          (ii) not more than $37,500 assessed against 
                      Lake City Army Ammunition Plant, Missouri, under 
                      CERCLA.
                    (B) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Navy, established 
                under section 2703(a)(3) of that title, as so amended, 
                not more than $30,000 assessed against the Naval 
                Education and Training Center, Newport, Rhode Island, 
                under CERCLA.
                    (C) Using funds authorized to be appropriated to the 
                Environmental Restoration Account, Air Force, 
                established under section 2703(a)(4) of that title, as 
                so amended--
                          (i) not more than $55,000 assessed against the 
                      Massachusetts Military Reservation, Massachusetts, 
                      under CERCLA; and
                          (ii) not more than $10,000 assessed against 
                      F.E. Warren Air Force Base, Wyoming, under CERCLA.
            (2) Using funds authorized to be appropriated to the 
        Environmental Restoration Account, Air Force, established under 
        section 2703(a)(4) of that title, as so amended, not more than 
        $500,000 to carry out one environmental restoration project, as 
        part of a negotiated agreement in lieu of stipulated penalties 
        assessed under CERCLA against the Massachusetts Military 
        Reservation, Massachusetts.

    (b) CERCLA Defined.--In this section, the term ``CERCLA'' means the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9601 et seq.).

[[Page 110 STAT. 2480]]

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

    (a) In General.--Section 3(c) of the Act to Prevent Pollution from 
Ships (33 U.S.C. 1902(c)) is amended--
            (1) in paragraph (1), by striking out ``Not later than'' and 
        inserting in lieu thereof ``Except as provided in paragraphs (2) 
        and (3), not later than''; and
            (2) by striking out paragraphs (2), (3), and (4) and 
        inserting in lieu thereof the following:

    ``(2)(A) Subject to subparagraph (B), any ship described in 
subparagraph (C) may discharge, without regard to the special area 
requirements of Regulation 5 of Annex V to the Convention, the following 
non-plastic, non-floating garbage:
            ``(i) A slurry of seawater, paper, cardboard, or food waste 
        that is capable of passing through a screen with openings no 
        larger than 12 millimeters in diameter.
            ``(ii) Metal and glass that have been shredded and bagged so 
        as to ensure negative buoyancy.

    ``(B)(i) Garbage described in subparagraph (A)(i) may not be 
discharged within 3 nautical miles of land.
    ``(ii) Garbage described in subparagraph (A)(ii) may not be 
discharged within 12 nautical miles of land.
    ``(C) <<NOTE: Applicability.>>  This paragraph applies to any ship 
that is owned or operated by the Department of the Navy that, as 
determined by the Secretary of the Navy--
            ``(i) has unique military design, construction, manning, or 
        operating requirements; and
            ``(ii) cannot fully comply with the special area 
        requirements of Regulation 5 of Annex V to the Convention 
        because compliance is not technologically feasible or would 
        impair the operations or operational capability of the ship.

    ``(3)(A) <<NOTE: Regulations. Federal Register, publication.>>  Not 
later than December 31, 2000, the Secretary of the Navy shall prescribe 
and publish in the Federal Register standards to ensure that each ship 
described in subparagraph (B) is, to the maximum extent practicable 
without impairing the operations or operational capabilities of the 
ship, operated in a manner that is consistent with the special area 
requirements of Regulation 5 of Annex V to the Convention.

    ``(B) <<NOTE: Applicability. Effective date. Termination date.>>  
Subparagraph (A) applies to surface ships that are owned or operated by 
the Department of the Navy that the Secretary plans to decommission 
during the period beginning on January 1, 2001, and ending on December 
31, 2005.

    ``(C) <<NOTE: Federal Register, publication.>>  At the same time 
that the Secretary publishes standards under subparagraph (A), the 
Secretary shall publish in the Federal Register a list of the ships 
covered by subparagraph (B).''.

    (b) Sense of Congress.--(1) It is the sense of Congress that it 
should be an objective of the Navy to achieve full compliance with Annex 
V to the Convention as part of the Navy's development of ships that are 
environmentally sound.
    (2) In this subsection, the terms ``Convention'' and ``ship'' have 
the meanings given such terms in section 2(a) of the Act to Prevent 
Pollution from Ships (33 U.S.C. 1901(a)).
    (c) <<NOTE: 10 USC 2706 note.>>  Report on Compliance With Annex V 
to the Convention.--The Secretary of Defense shall include in each 
report on environmental compliance activities submitted to Congress 
under section 2706(b) of title 10, United States Code, the following 
information:

[[Page 110 STAT. 2481]]

            (1) A list of the ship types, if any, for which the 
        Secretary of the Navy has made the determination referred to in 
        paragraph (2)(C) of section 3(c) of the Act to Prevent Pollution 
        from Ships, as amended by subsection (a)(2) of this section.
            (2) A list of ship types which the Secretary of the Navy has 
        determined can comply with Regulation 5 of Annex V to the 
        Convention.
            (3) A summary of the progress made by the Navy in 
        implementing the requirements of paragraphs (2) and (3) of such 
        section 3(c), as so amended.
            (4) A description of any emerging technologies offering the 
        potential to achieve full compliance with Regulation 5 of Annex 
        V to the Convention.
            (5) The amount and nature of the discharges in special 
        areas, not otherwise authorized under the Act to Prevent 
        Pollution from Ships (33 U.S.C. 1901 et seq.), during the 
        preceding year from ships referred to in section 3(b)(1)(A) of 
        such Act owned or operated by the Department of the Navy.

    (d) Publication Regarding Special Area Discharges.--Subparagraph (A) 
of section 3(e)(4) of the Act to Prevent Pollution from Ships (33 U.S.C. 
1902(e)(4)) is amended to read as follows:
                    ``(A) Each year, the amount and nature of the 
                discharges in special areas, not otherwise authorized 
                under this Act, during the preceding year from ships 
                referred to in subsection (b)(1)(A) of this section 
                owned or operated by the Department of the Navy.''.
SEC. 325. AUTHORITY <<NOTE: 10 USC 2701 note.>> TO DEVELOP AND 
                        IMPLEMENT LAND USE PLANS FOR DEFENSE 
                        ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Authority.--The Secretary of Defense may, to the extent possible 
and practical, develop and implement, as part of the Defense 
Environmental Restoration Program provided for in chapter 160 of title 
10, United States Code, a land use
plan for any defense site selected by the Secretary under subsection 
(b).

    (b) Selection of Sites.--The Secretary may select up to 10 defense 
sites, from among sites where the Secretary is planning or implementing 
environmental restoration activities, for which land use plans may be 
developed under this section.
    (c) Requirement To Consult With Review Committee or Advisory 
Board.--In developing a land use plan under this section, the Secretary 
shall consult with a technical review committee established pursuant to 
section 2705(c) of title 10, United States Code, a restoration advisory 
board established pursuant to section 2705(d) of such title, a local 
land use redevelopment authority, or another appropriate State agency.
    (d) 50-Year Planning Period.--A land use plan developed under this 
section shall cover a period of at least 50 years.
    (e) Implementation.--For each defense site for which the Secretary 
develops a land use plan under this section, the Secretary shall take 
into account the land use plan in selecting and implementing, in 
accordance with applicable law, environmental restoration activities at 
the site.
    (f) Deadlines.--For each defense site for which the Secretary 
intends to develop a land use plan under this section, the Secretary 
shall develop a draft land use plan by October 1, 1997, and a final land 
use plan by March 15, 1998.

[[Page 110 STAT. 2482]]

    (g) Definition of Defense Site.--For purposes of this section, the 
term ``defense site'' means (A) any building, structure, installation, 
equipment, pipe or pipeline (including any pipe into a sewer or publicly 
owned treatment works), well, pit, pond, lagoon, impoundment, ditch, 
landfill, storage container, motor vehicle, rolling stock, or aircraft 
under the jurisdiction of the Department of Defense, or (B) any site or 
area under the jurisdiction of the Department of Defense where a 
hazardous substance has been deposited, stored, disposed of, or placed, 
or otherwise come to be located; but does not include any consumer 
product in consumer use or any vessel.
    (h) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary shall include information on 
the land use plans developed under this section and the effect such 
plans have had on environmental restoration activities at the defense 
sites where they have been implemented. The annual report submitted in 
1999 shall include recommendations on whether such land use plans should 
be developed and implemented throughout the Department of Defense.
    (i)  Savings Provisions.--(1) Nothing in this section, or in a land 
use plan developed under this section with respect to a defense site, 
shall be construed as requiring any modification to a land use plan that 
was developed before the date of the enactment of this Act.

    (2) Nothing in this section may be construed to affect statutory 
requirements for an environmental restoration or waste management 
activity or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste management 
requirements, including substantive standards intended to protect public 
health and the environment, nor shall anything in this section be 
construed to preempt or impair any local land use planning or zoning 
authority or State authority.
SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR 
                        LIMITING AIR EMISSIONS DURING SHIPYARD 
                        BLASTING AND COATING OPERATIONS.

    (a) Determination by Secretary of the Navy.--(1) The Secretary of 
the Navy shall make a determination whether the alternative technology 
described in paragraph (2) has the clear potential for significant 
benefit to the Navy. <<NOTE: Notification.>> The Secretary shall submit 
to Congress a notification in writing of the determination not later 
than 60 days after the date of the enactment of this Act.

    (2) The technology referred to in paragraph (1) is an alternative 
technology designed to capture and destroy or remove particulate 
emissions and volatile air pollutants that occur during abrasive 
blasting and coating operations at naval shipyards.
    (b) Pilot Program.--If the determination made under subsection 
(a)(1) is in the affirmative, the Secretary shall establish a pilot 
program to test the alternative technology. In conducting the test, the 
Secretary shall seek to demonstrate whether the technology is valid, 
cost effective, and in compliance with environmental laws and 
regulations.
    (c) Report.--Upon completion of the test conducted under the pilot 
program, the Secretary shall submit to the Committee on Armed Services 
of the Senate and the Committee on National Security of the House of 
Representatives a report setting forth in detail the results of the 
test. The report shall include 


[[Page 110 STAT. 2483]]

recommendations on whether the alternative technology merits 
implementation at naval shipyards and such other recommendations as the 
Secretary considers appropriate.
SEC. 327. <<NOTE: 10 USC 2702 note.>>  AGREEMENTS FOR SERVICES OF 
                        OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL 
                        TECHNOLOGY CERTIFICATION.

    (a) Authority.--Subject to subsection (b), the Secretary of Defense 
may enter into a cooperative agreement with an agency of a State or 
local government to obtain assistance in certifying environmental 
technologies.
    (b) Limitations.--The Secretary of Defense may enter into a 
cooperative agreement with respect to an environmental technology under 
subsection (a) only if the Secretary determines--
            (1) that the technology has clear potential to be of 
        significant value to the Department of Defense in carrying out 
        its environmental restoration activities; and
            (2) that there is no reasonably available market in the 
        private sector for the technology without a certification by the 
        Department of Defense, the Environmental Protection Agency, or a 
        State environmental agency.

    (c) Types of Assistance.-- The types of assistance that may be 
obtained under subsection (a) include the following:
            (1) Data collection and analysis.
            (2) Technical assistance in conducting a demonstration of an 
        environmental technology, including the implementation of 
        quality assurance and quality control programs.

    (d) Report.--In the annual report required under section 2706(a) of 
title 10, United States Code, the Secretary of Defense shall include the 
following information with respect to cooperative agreements entered 
into under this section:
            (1) The number of such agreements.
            (2) The number of States in which such agreements have been 
        entered into.
            (3) A description of the nature of the technology involved 
        in each such agreement.
            (4) The amount of funds obligated or expended by the 
        Department of Defense for each such agreement during the year 
        covered by the report.

    (e) Termination of Authority.--The authority provided under 
subsection (a) shall terminate five years after the date of the 
enactment of this Act.
SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND 
                        CONSULTATION REQUIREMENTS REGARDING 
                        REMEDIAL INVESTIGATIONS AND FEASIBILITY 
                        STUDIES AT CERTAIN INSTALLATIONS TO BE 
                        CLOSED UNDER THE BASE CLOSURE LAWS.

    Section 334 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1340; 10 U.S.C. 2687 
note) is repealed.
SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR SERVICES 
                        UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    Section 2701(d) of title 10, United States Code, is amended--
            (1) in the first sentence of paragraph (1), by striking out 
        ``, or with any State or local government agency,'' and 
        inserting

[[Page 110 STAT. 2484]]

        in lieu thereof ``, with any State or local government agency, 
        or with any Indian tribe,''; and
            (2) by adding at the end the following:
            ``(3) Definition.--In this subsection, the term `Indian 
        tribe' has the meaning given such term in section 101(36) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601(36)).''.
SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON 
                        NATIONAL PRIORITIES LIST.

    Section 120(d) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (2) by striking out ``Not later than 18 months after the 
        enactment of the Superfund Amendments and Reauthorization Act of 
        1986, the Administrator'' and inserting in lieu thereof the 
        following:
            ``(1) In general.--The Administrator'';
            (3) by moving the remainder of the text of paragraph (1), as 
        designated by paragraph (2) of this section (including 
        subparagraphs (A) and (B), as redesignated by paragraph (1) of 
        this section) 2 ems to the right; and
            (4) by striking out ``Such criteria'' and all that follows 
        through the end of the subsection and inserting in lieu thereof 
        the following:
            ``(2) Application of criteria.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                criteria referred to in paragraph (1) shall be applied 
                in the same manner as the criteria are applied to 
                facilities that are owned or operated by persons other 
                than the United States.
                    ``(B) Response under other law.--It shall be an 
                appropriate factor to be taken into consideration for 
                the purposes of section 105(a)(8)(A) that the head of 
                the department, agency, or instrumentality that owns or 
                operates a facility has arranged with the Administrator 
                or appropriate State authorities to respond 
                appropriately, under authority of a law other than this 
                Act, to a release or threatened release of a hazardous 
                substance.
            ``(3) Completion.--Evaluation and listing under this 
        subsection shall be completed in accordance with a reasonable 
        schedule established by the Administrator.''.
SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR 
                        PURPOSES OF TRANSFER BY THE UNITED STATES.

    Section 120(h)(4)(A) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)(4)(A)) is 
amended in the first sentence by striking out ``stored for one year or 
more, known to have been released,'' and inserting in lieu thereof 
``known to have been released''.

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

    (a) In General.--(1) Chapter 159 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 110 STAT. 2485]]

``Sec. 2694. Conservation and cultural activities

    ``(a) Establishment.--The Secretary of Defense may establish and 
carry out a program to conduct and manage in a coordinated manner the 
conservation and cultural activities described in subsection (b).
    ``(b) Activities.--(1) A conservation or cultural activity eligible 
for the program that the Secretary establishes under subsection (a) is 
any activity--
            ``(A) that has regional or Department of Defense-wide 
        significance and that involves more than one military 
        department;
            ``(B) that is necessary to meet legal requirements or to 
        support military operations;
            ``(C) that can be more effectively managed at the Department 
        of Defense level; and
            ``(D) for which no executive ageny has been designated 
        responsible by the Secretary.

    ``(2) Such activities include the following:
            ``(A) The development of ecosystem-wide land management 
        plans.
            ``(B) The conduct of wildlife studies to ensure the safety 
        of military operations.
            ``(C) The identification and return of Native American human 
        remains and cultural items in the possession or control of the 
        Department of Defense, or discovered on land under the 
        jurisdiction of the Department, to the appropriate Native 
        American tribes.
            ``(D) The control of invasive species that may hinder 
        military activities or degrade military training ranges.
            ``(E) The establishment of a regional curation system for 
        artifacts found on military installations.

    ``(c) Cooperative Agreements.--The Secretary may negotiate and enter 
into cooperative agreements with public and private agencies, 
organizations, institutions, individuals, or other entities to carry out 
the program established under subsection (a).
    ``(d) Effect on Other Laws.--Nothing in this section shall be 
construed or interpreted as preempting any otherwise applicable Federal, 
State, or local law or regulation relating to the management of natural 
and cultural resources on military installations.''.

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

``2694. Conservation and cultural activities.''.

    (b) <<NOTE: 10 USC 2694 note.>>  Effective Date.--Section 2694 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 1996.
SEC. 333. <<NOTE: Water. 33 USC 2406 note.>>  NAVY PROGRAM TO 
                        MONITOR ECOLOGICAL EFFECTS OF ORGANOTIN.

    (a) Monitoring Requirement.--The Secretary of the Navy shall, in 
consultation with the Administrator of the Environmental Protection 
Agency, develop and implement a program to monitor the concentrations of 
organotin in the water column, sediments, and aquatic organisms of 
representative estuaries and near-coastal waters in the United States, 
as described in section 7(a) of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2406(a)). The program shall be designed to 
produce high-quality data to

[[Page 110 STAT. 2486]]

enable the Environmental Protection Agency to develop water quality 
criteria concerning organotin compounds.
    (b) Funding.--The Administrator of the Environmental Protection 
Agency shall provide, in advance, such sums as are necessary to the 
Secretary of the Navy for the costs of developing and implementing the 
program under subsection (a).
    (c) Written Agreement.--The Secretary of the Navy and the 
Administrator of the Environmental Protection Agency shall enter into a 
written agreement setting forth the actions that the Secretary plans to 
take under subsection (a) and the funding that the Administrator agrees 
to provide under subsection (b). <<NOTE: Notification.>>  If the 
Secretary determines that the Administrator will not enter into such an 
agreement, the Secretary shall notify the Committee on National Security 
of the House of Representatives and the Committee on Armed Services of 
the Senate not later than 30 days after such determination.

    (d) Nonimpairment of Mission.--Compliance with subsection (a) shall 
be conducted in such a manner so as not to impair the ability of the 
Department of the Navy to meet its operational requirements.
    (e) Report.--Not later than June 1, 1997, the Secretary of the Navy 
shall submit to Congress a report containing the following:
            (1) A description of the monitoring program developed 
        pursuant to subsection (a).
            (2) An analysis of the results of the monitoring program as 
        of the date of the submission of the report.
            (3) Information about the progress of Navy programs, 
        referred to in section 7(c) of the Organotin Antifouling Paint 
        Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the 
        laboratory toxicity and environmental risks associated with the 
        use of antifouling paints containing organotin.
            (4) An assessment, developed in consultation with the 
        Administrator of the Environmental Protection Agency, of the 
        effectiveness of existing laws and rules concerning organotin 
        compounds in ensuring protection of human health and the 
        environment.

    (f) Sense of Congress.--(1) It is the sense of Congress that the 
Administrator of the Environmental Protection Agency, in consultation 
with the Secretary of the Navy, should develop, for purposes of the 
national pollutant discharge elimination system, a model permit for the 
discharge of organotin compounds at shipbuilding and ship repair 
facilities.
    (2) For purposes of this subsection, the term ``organotin'' has the 
meaning provided in section 3 of the Organotin Antifouling Paint Control 
Act of 1988 (33 U.S.C. 2402).
    (g) Termination.--The program required by subsection (a) shall 
terminate five years after the date of the enactment of this Act.
SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY 
                        BEFORE COMPLETION OF REQUIRED RESPONSE 
                        ACTIONS.

    (a) In General.--Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620(h)(3)) is amended--
            (1) by redesignating subparagraph (A) as clause (i) and 
        clauses (i), (ii), and (iii) of that subparagraph as subclauses 
        (I), (II), and (III), respectively;

[[Page 110 STAT. 2487]]

            (2) by striking out ``After the last day'' and inserting in 
        lieu thereof the following:
                    ``(A) In general.--After the last day'';
            (3) by redesignating subparagraph (B) as clause (ii) and 
        clauses (i) and (ii) of that subparagraph as subclauses (I) and 
        (II), respectively;
            (4) by redesignating subparagraph (C) as clause (iii);
            (5) by moving the remainder of the text of subparagraph (A), 
        as designated by paragraph (2) of this subsection (including the 
        clauses and subclauses redesignated
by paragraphs (1), (3), and (4) of this subsection) 2 ems to the right;
            (6) by striking ``For purposes of subparagraph (B)(i)'' and 
        inserting the following:
                    ``(B) Covenant requirements.--For purposes of 
                subparagraphs (A)(ii)(I) and (C)(iii)'';
            (7) in subparagraph (B), as designated by paragraph (5), by 
        striking ``subparagraph (B)'' each place it appears and 
        inserting ``subparagraph (A)(ii)''; and
            (8) by adding at the end the following:
                    ``(C) Deferral.--
                          ``(i) In general.--The Administrator, with the 
                      concurrence of the Governor of the State in which 
                      the facility is located (in the case of real 
                      property at a Federal facility that is listed on 
                      the National Priorities List), or the Governor of 
                      the State in which the facility is located (in the 
                      case of real property at a Federal facility not 
                      listed on the National Priorities List) may defer 
                      the requirement of subparagraph (A)(ii)(I) with 
                      respect to the property if the Administrator or 
                      the Governor, as the case may be, determines that 
                      the property is suitable for transfer, based on a 
                      finding that--
                                    ``(I) the property is suitable for 
                                transfer for the use intended by the 
                                transferee, and the intended use is 
                                consistent with protection of human 
                                health and the environment;
                                    ``(II) the deed or other agreement 
                                proposed to govern the transfer between 
                                the United States and the transferee of 
                                the property contains the assurances set 
                                forth in clause (ii);
                                    ``(III) the Federal agency 
                                requesting deferral has provided notice, 
                                by publication in a newspaper of general 
                                circulation in the vicinity of the 
                                property, of the proposed transfer and 
                                of the opportunity for the public to 
                                submit, within a period of not less than 
                                30 days after the date of the notice, 
                                written comments on the suitability of 
                                the property for transfer; and
                                    ``(IV) the deferral and the transfer 
                                of the property will not substantially 
                                delay any necessary response action at 
                                the property. 
                          ``(ii) Response action assurances.--With 
                      regard to a release or threatened release of a 
                      hazardous substance for which a Federal agency is 
                      potentially responsible under this section, the 
                      deed or other agreement proposed to govern the 
                      transfer shall contain assurances that--

[[Page 110 STAT. 2488]]

                                    ``(I) provide for any necessary 
                                restrictions on the use of the property 
                                to ensure the protection of human health 
                                and the environment;
                                    ``(II) provide that there will be 
                                restrictions on use necessary to ensure 
                                that required remedial investigations, 
                                response action, and oversight 
                                activities will not be disrupted;
                                    ``(III) provide that all necessary 
                                response action will be taken and 
                                identify the schedules for investigation 
                                and completion of all necessary response 
                                action as approved by the appropriate 
                                regulatory agency; and
                                    ``(IV) provide that the Federal 
                                agency responsible for the property 
                                subject to transfer will submit a budget 
                                request to the Director of the Office of 
                                Management and Budget that adequately 
                                addresses schedules for investigation 
                                and completion of all necessary response 
                                action, subject to congressional 
                                authorizations and appropriations.
                          ``(iii) Warranty.--When all response action 
                      necessary to protect human health and the 
                      environment with respect to any substance 
                      remaining on the property on the date of transfer 
                      has been taken, the United States shall execute 
                      and deliver to the transferee an appropriate 
                      document containing a warranty that all such 
                      response action has been taken, and the making of 
                      the warranty shall be considered to satisfy the 
                      requirement of subparagraph (A)(ii)(I).
                          ``(iv) Federal responsibility.--A deferral 
                      under this subparagraph shall not increase, 
                      diminish, or affect in any manner any rights or 
                      obligations of a Federal agency (including any 
                      rights or obligations under sections 106, 107, and 
                      120 existing prior to transfer) with respect to a 
                      property transferred under this subparagraph.''.

    (b) Continued Application of State Law.--The first sentence of 
section 120(a)(4) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4)) is 
amended by inserting ``or facilities that are the subject of a deferral 
under subsection (h)(3)(C)'' after ``United States''.

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR OBTAIN GOODS 
                        AND SERVICES TO PROMOTE EFFICIENT 
                        OPERATION AND MANAGEMENT OF EXCHANGES AND 
                        MORALE, WELFARE, AND RECREATION 
                        ACTIVITIES.

    (a) Contracts To Promote Efficient Operation and Management.--(1) 
Chapter 147 of title 10, United States Code, is amended by inserting 
after section 2482 the following new section:

[[Page 110 STAT. 2489]]

``Sec. 2482a. Nonappropriated fund instrumentalities: contracts 
                      with other agencies and instrumentalities to 
                      provide and obtain goods and services

    ``An agency or instrumentality of the Department of Defense that 
supports the operation of the exchange system, or the operation of a 
morale, welfare, and recreation system, of the Department of Defense may 
enter into a contract or other
agreement with another element of the Department of Defense or with 
another Federal department, agency, or instrumentality to provide or 
obtain goods and services beneficial to the efficient management and 
operation of the exchange system or that morale, welfare, and recreation 
system.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2482 the 
following new item:

``2482a. Nonappropriated fund instrumentalities: contracts with other 
            agencies and instrumentalities to provide and obtain goods 
            and services.''.

    (b) Conforming Amendment Regarding Commissary System.--Section 
2482(b)(1) of such title is amended by striking out ``another 
department'' and all that follows through ``provide services'' and 
inserting in lieu thereof ``another element of the Department of Defense 
or with another Federal department, agency, or instrumentality to 
provide or obtain services''.
SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME COMMERCIAL 
                        ITEMS FOR RESALE IN COMMISSARY STORES.

    (a) Clarification of Exception to Competitive Procurement.--Section 
2486 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) The Secretary of Defense may not use the exception provided in 
section 2304(c)(5) of this title regarding the procurement of a brand-
name commercial item for resale in commissary stores unless the 
commercial item is regularly sold outside of commissary stores under the 
same brand name as the name by which the commercial item will be sold in 
commissary stores.''.
    (b) <<NOTE: 10 USC 2486 note.>>  Effect on Existing Contracts or 
Other Agreements.--Section 2486(e) of title 10, United States Code, as 
added by subsection (a), shall not affect the terms, conditions, or 
duration of any contract or other agreement entered into by the 
Secretary of Defense before the date of the enactment of this Act for 
the procurement of commercial items for resale in commissary stores.
SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT 
                        MATERIAL.

    (a) In General.--(1) Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2489 the following new section:
``Sec. 2489a. Sale or rental of sexually explicit material pro-
                    hibited

    ``(a) Prohibition of Sale or Rental.--The Secretary of Defense may 
not permit the sale or rental of sexually explicit material on property 
under the jurisdiction of the Department of Defense.

[[Page 110 STAT. 2490]]

    ``(b) Prohibition of Officially Provided Sexually Explicit 
Material.--A member of the armed forces or a civilian officer or 
employee of the Department of Defense acting in an official capacity may 
not provide for sale, remuneration, or rental sexually explicit material 
to another person.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to implement this section.
    ``(d) Definitions.--In this section:
            ``(1) The term `sexually explicit material' means an audio 
        recording, a film or video recording, or a periodical with 
        visual depictions, produced in any medium, the dominant theme of 
        which depicts or describes nudity, including sexual or excretory 
        activities or organs, in a lascivious way.
            ``(2) The term `property under the jurisdiction of the 
        Department of Defense' includes commissaries, all facilities 
        operated by the Army and Air Force Exchange Service, the Navy 
        Exchange Service Command, the Navy Resale and Services Support 
        Office, Marine Corps exchanges, and ships' stores.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2489 the 
following new item:

``2489a. Sale or rental of sexually explicit material prohibited.''.

    (b) <<NOTE: 10 USC 2489a note.>>  Effective Date.--Subsection (a) of 
section 2489a of title 10, United States Code, as added by subsection 
(a) of this section, shall take effect 90 days after the date of the 
enactment of this Act.

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

SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE PROCUREMENT OF 
                        PRINTING AND DUPLICATION SERVICES.

    (a) Extension.--Section 351(a) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266) is amended 
by striking out ``fiscal year 1996'' and inserting in lieu thereof 
``fiscal years 1996 and 1997''.
    (b) Reporting Requirements.--Such section is further 
amended by adding at the end the following new subsection:
    ``(c) Reporting Requirements.--(1) Not later than 90 days after the 
end of each fiscal year in which the requirement of subsection (a) 
applies, the Secretary of Defense shall submit to Congress a report--
            ``(A) describing the extent of the compliance of the 
        Secretary with the requirement during that fiscal year;
            ``(B) specifying the total volume of printing and 
        duplication services procured by the Department of Defense 
        during that fiscal year--
                    ``(i) from sources within the Department of Defense;
                    ``(ii) from private-sector sources; and
                    ``(iii) from other sources in the Federal Govern-
                ment; and
            ``(C) specifying the total volume of printed and duplicated 
        material during that fiscal year covered by the exception in 
        subsection (b).

[[Page 110 STAT. 2491]]

    ``(2) The report required for fiscal year 1996 shall also include 
the plans of the Secretary for further implementation of the requirement 
of subsection (a) during fiscal year 1997.''.
SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION PROJECT FOR 
                        PURCHASE OF FIRE, SECURITY, POLICE, PUBLIC 
                        WORKS, AND UTILITY SERVICES FROM LOCAL 
                        GOVERNMENT AGENCIES.

    Section 816(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2820) is amended by striking 
out ``, 1996'' and inserting in lieu thereof ``of each of the years 1997 
and 1998''.

                        Subtitle F--Other Matters

SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR RECRUITING 
                        FUNCTIONS.

    (a) Authority.--Chapter 31 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 520c. Recruiting functions: use of funds

    ``(a) <<NOTE: Regulations.>>  Provision of Meals and Refreshments.--
Under regulations prescribed by the Secretary concerned, funds 
appropriated to the Department of Defense for recruitment of military 
personnel may be expended for small meals and refreshments during 
recruiting functions for the following persons:
            ``(1) Persons who have enlisted under the Delayed Entry 
        Program authorized by section 513 of this title.
            ``(2) Persons who are objects of armed forces recruiting 
        efforts.
            ``(3) Persons whose assistance in recruiting efforts of the 
        military departments is determined to be influential by the 
        Secretary concerned.
            ``(4) Members of the armed forces and Federal employees when 
        attending recruiting events in accordance with a requirement to 
        do so.
            ``(5) Other persons whose presence at recruiting efforts 
        will contribute to recruiting efforts.

    ``(b) Annual Report.--Not later than February 1 of each of the years 
1998 through 2002, the Secretary of Defense shall submit to Congress a 
report on the extent to which the authority under subsection (a) was 
exercised during the fiscal year ending in the preceding year.
    ``(c) Termination of Authority.--The authority in subsection (a) may 
not be exercised after September 30, 2001.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``520c. Recruiting functions: use of funds.''.

SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT NON-
                        GOVERNMENT FACILITIES.

    (a) Authority to Enter Into Agreements for Training at Non-
Government Facilities.--(1) Chapter 101 of title 10, United States Code, 
is amended by adding at the end the following new section:

[[Page 110 STAT. 2492]]

``Sec. 2013. Training at non-Government facilities

    ``(a) Authority To Enter Into Agreements.--(1) The Secretary 
concerned, without regard to section 3709 of the Revised Statutes (41 
U.S.C. 5), may make agreements or other arrangements for the training of 
members of the uniformed services under the jurisdiction of that 
Secretary by, in, or through non-Government facilities.
    ``(2) In this section, the term `non-Government facility' means any 
of the following:
            ``(A) The government of a State or of a territory or 
        possession of the United States, including the Commonwealth of 
        Puerto Rico, an interstate governmental organization, and a 
        unit, subdivision, or instrumentality of any of the foregoing.
            ``(B) A foreign government or international organization, or 
        instrumentality of either, which is designated by the President 
        as eligible to provide training under this section.
            ``(C) A medical, scientific, technical, educational, 
        research, or professional institution, foundation, or 
        organization.
            ``(D) A business, commercial, or industrial firm, 
        corporation, partnership, proprietorship, or other organization.
            ``(E) Individuals other than civilian or military personnel 
        of the Government.
            ``(F) The services and property of any of the foregoing 
        providing the training.

    ``(b) Expenses.--The Secretary concerned, from appropriations or 
other funds available to the Secretary, may--
            ``(1) pay all or a part of the pay of a member of a 
        uniformed service who is selected and assigned for training 
        under this section, for the period of training; and
            ``(2) pay, or reimburse the member of a uniformed service 
        for, all or a part of the necessary expenses of the training 
        (without regard to subsections (a) and (b) of section 3324 of 
        title 31), including among those expenses the necessary costs of 
        the following:
                    ``(A) Travel and per diem instead of subsistence 
                under sections 404 and 405 of title 37 and the Joint 
                Travel Regulations for the Uniformed Services.
                    ``(B) Transportation of immediate family, household 
                goods and personal effects, packing, crating, 
                temporarily storing, draying, and unpacking under 
                sections 406 and 409 of title 37 and the Joint Travel 
                Regulations for the Uniformed Services when the 
                estimated costs of transportation and related services 
                are less than the estimated aggregate per diem payments 
                for the period of training.
                    ``(C) Tuition and matriculation fees.
                    ``(D) Library and laboratory services.
                    ``(E) Purchase or rental of books, materials, and 
                supplies.
                    ``(F) Other services or facilities directly related 
                to the training of the member.

    ``(c) Certain Expenses Excluded.--The expenses of training do not 
include membership fees except to the extent that the fee is a necessary 
cost directly related to the training itself or that payment of the fee 
is a condition precedent to undergoing the training.''.

[[Page 110 STAT. 2493]]

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

``2013. Training at non-Government facilities.''.

  (b) <<NOTE: 10 USC 2013 note.>>  Effective Date.--Section 2013 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on October 1, 1996.
SEC. 363. <<NOTE: 10 USC 2216a note.>>  REQUIREMENT FOR 
                        PREPARATION OF PLAN FOR IMPROVED OPERATION 
                        OF WORKING-CAPITAL FUNDS AND EFFECT OF 
                        FAILURE TO PRODUCE AN APPROVED PLAN.

    (a) Plan for Improved Operation of Working-Capital Funds.--Not later 
than September 30, 1997, the Secretary of Defense shall submit to 
Congress a plan to improve the management and performance of the 
industrial, commercial, and support type activities of the military 
departments or the Defense Agencies that are currently managed through 
the Defense Business Operations Fund.
    (b) Elements of Plan.--The plan required by subsection (a) shall 
address the following issues:
            (1) The ability of each military department or Defense 
        Agency to set working capital requirements and set charges at 
        its own industrial and supply activities.
            (2) The desirability of separate business accounts for the 
        management of both industrial and supply activities for each 
        military department or Defense Agency.
            (3) Liability for operation losses at industrial and supply 
        activities.
            (4) Reimbursement to the Department of Defense by each 
        military department or Defense Agency of its fair share of the 
        costs of legitimate common business support services (such as 
        accounting and financial services and central logistics 
        services) provided by the Department of Defense.
            (5) The role of the Department of Defense in setting charges 
        or imposing surcharges for activities managed by the business 
        accounts of a military department or Defense Agency (except for 
        the common business support cost described in paragraph (4)), 
        and what such charges should properly reflect.
            (6) The appropriate use of operating profits arising from 
        the operations of the industrial and supply activities of a 
        military department or Defense Agency.
            (7) The ability of a military department or Defense Agency 
        to purchase industrial and supply services from, and provide 
        such services to, other military departments or Defense 
        Agencies.
            (8) Standardization of financial management and accounting 
        practices employed by the business accounts of a military 
        department or Defense Agency.
            (9) Reporting requirements related to actual and projected 
        performance of business management account activities of a 
        military department or Defense Agency.

    (c) <<NOTE: 10 USC 2216a.>>  Effect of Failure to Submit or Approve 
of Plan.--(1) Unless, before October 1, 1999, the Secretary of Defense 
submits the plan required by subsection (a) and Congress enacts a 
provision of law described in paragraph (2) that approves of the plan as 
submitted or in an amended form, then section 2216a of title 10, United 
States Code, regarding the Defense Business Operations

[[Page 110 STAT. 2494]]

Fund (as redesignated by section 1074(a)(10) of this Act), shall be 
repealed effective as of that date.

    (2) The provision of law referred to in paragraph (1) is a provision 
of law that--
            (A) is enacted after the submission of the plan required by 
        subsection (a);
            (B) specifically refers to the plan and this section; and
            (C) specifically states that the plan required by subsection 
        (a) is approved as submitted or with such amendments as may be 
        contained in such law.

    (d) Basis for Charges for Goods And Services; Comptroller General 
Review.--(1) In the development of the proposed budget for the Defense 
Business Operations Fund for a fiscal year, the Secretary of Defense 
shall ensure that accurate and realistic pricing and quantity estimates 
are used regarding the goods and services to be provided by working-
capital funds and industrial, commercial, and support type activities 
managed through the Fund.
    (2) The Secretary of Defense shall make available to the Comptroller 
General information used to establish the charges for goods and services 
to be provided by working-capital funds and industrial, commercial, and 
support type activities managed through the Fund. The Comptroller 
General shall conduct an annual review of the adequacy of the basis for 
the charges. <<NOTE: Reports.>>  Not later than 30 days after the date 
on which the Secretary submits the annual report and proposed budget for 
the Fund under subsection (h) of section 2216a of title 10, United 
States Code, as redesignated by section 1074(a)(10) of this Act, the 
Comptroller General shall submit to Congress a report containing the 
results of the review.
SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE 
                        BUSINESS OPERATIONS FUND.

    Section 2216a of title 10, United States Code, as redesignated by 
section 1074(a)(10) of this Act, is amended in subsection (i)(1) by 
striking out ``$50,000'' and inserting in lieu thereof ``$100,000''.

SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

    (a) Authority for Donations From Defense Agencies.--Section 2485 of 
title 10, United States Code, is amended by striking out ``Secretary of 
a military department'' in subsections (a) and (b) and inserting in lieu 
thereof ``Secretary of Defense''.
    (b) Expansion of Eligible Recipients.--Such section is further 
amended--
            (1) in subsection (a), by striking out ``authorized 
        charitable nonprofit food banks'' and inserting in lieu thereof 
        ``entities specified under subsection (d)''; and
            (2) in subsection (d), by striking out ``may only be made'' 
        and all that follows and inserting in lieu thereof the
following: ``may only be made to an entity that is one of the following:
            ``(1) A charitable nonprofit food bank that is designated by 
        the Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(2) A State or local agency that is designated by the 
        Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(3) A chapter or other local unit of a recognized national 
        veterans organization that provides services to persons without 
        adequate shelter and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.

[[Page 110 STAT. 2495]]

            ``(4) A not-for-profit organization that provides care for 
        homeless veterans and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.''.

    (c) Clarification of Food That May Be Donated.--Subsection (b) of 
such section is further amended by inserting ``rations known as 
humanitarian daily rations (HDRs),'' after ``(MREs),''.
SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE 
                        PRESIDENT.

    (a) In General.--Section 2543 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2543. Equipment and services: Presidential inaugural 
                    ceremonies

    ``(a) Assistance Authorized.--The Secretary of Defense may, with 
respect to the ceremonies relating to the inaugu-
ration of a President, provide the assistance referred to in subsection 
(b) to--
            ``(1) the Presidential Inaugural Committee; and
            ``(2) the congressional Joint Inaugural Committee.

    ``(b) Assistance.--Assistance that may be provided under subsection 
(a) is the following:
            ``(1) Planning and carrying out activities relating to 
        security and safety.
            ``(2) Planning and carrying out ceremonial activities.
            ``(3) Loan of property.
            ``(4) Any other assistance that the Secretary considers 
        appropriate.

    ``(c) Reimbursement.--(1) The Presidential Inaugural Committee shall 
reimburse the Secretary for any costs incurred in connection with the 
provision to the committee of assistance referred to in subsection 
(b)(4).
    ``(2) Costs reimbursed under paragraph (1) shall be credited to the 
appropriations from which the costs were paid. The amount credited to an 
appropriation shall be proportionate to the amount of the costs charged 
to that appropriation.
    ``(d) Loaned Property.--With respect to property loaned for a 
presidential inauguration under subsection (b)(3), the Presidential 
Inaugural Committee shall--
            ``(1) return that property within nine days after the date 
        of the ceremony inaugurating the President;
            ``(2) give good and sufficient bond for the return in good 
        order and condition of that property;
            ``(3) indemnify the United States for any loss of, or damage 
        to, that property; and
            ``(4) defray any expense incurred for the delivery, return, 
        rehabilitation, replacement, or operation of that property.

    ``(e) Definitions.--In this section:
            ``(1) The term `Presidential Inaugural Committee' means the 
        committee referred to in subsection (b)(2) of the first section 
        of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721) 
        that is appointed with respect to the inauguration of a 
        President-elect and Vice President-elect.
            ``(2) The term `congressional Joint Inaugural Committee' 
        means the joint committee of the Senate and House of 
        Representatives referred to in the proviso in section 9 of the 
        Presidential Inaugural Ceremonies Act (36 U.S.C. 729) that is

[[Page 110 STAT. 2496]]

        appointed with respect to the inauguration of a President-elect 
        and Vice President-elect.''.

    (b) Clerical Amendment.--The item relating to section 2543 in the 
table of sections at the beginning of chapter 152 of such title is 
amended to read as follows:

``2543. Equipment and services: Presidential inaugural ceremonies.''.

SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.

    (a) Authority To Provide Support.--Subchapter II of chapter 152 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2554. Provision of support for certain sporting events

    ``(a) Security and Safety Assistance.--At the request of a Federal, 
State, or local government agency responsible for providing law 
enforcement services, security services, or safety services, the 
Secretary of Defense may authorize the commander of a military 
installation or other facility of the Department of Defense or the 
commander of a specified or unified combatant command to provide 
assistance for the World Cup Soccer Games, the Goodwill Games, the 
Olympics, and any other civilian sporting event in support of essential 
security and safety at such event, but only if the Attorney General 
certifies that such assistance is necessary to meet essential security 
and safety needs.
    ``(b) Other Assistance.--The Secretary of Defense may authorize a 
commander referred to in subsection (a) to provide assistance for a 
sporting event referred to in that subsection in support of other needs 
relating to such event, but only--
            ``(1) to the extent that such needs cannot reasonably be met 
        by a source other than the Department;
            ``(2) to the extent that the provision of such assistance 
        does not adversely affect the military preparedness of the armed 
        forces; and
            ``(3) if the organization requesting such assistance agrees 
        to reimburse the Department for amounts expended by the 
        Department in providing the assistance in accordance with the 
        provisions of section 377 of this title and other applicable 
        provisions of law.

    ``(c) Inapplicability to Certain Events.--Subsections (a) and (b) do 
not apply to the following sporting events:
            ``(1) Sporting events for which funds have been appropriated 
        before the date of the enactment of this Act.
            ``(2) The Special Olympics.
            ``(3) The Paralympics.

    ``(d) Terms and Conditions.--The Secretary of Defense may require 
such terms and conditions in connection with the provision of assistance 
under this section as the Secretary considers necessary and appropriate 
to protect the interests of the United States.
    ``(e) Report on Assistance.--Not later than January 30 of each year 
following a year in which the Secretary of Defense provides assistance 
under this section, the Secretary shall submit to Congress a report on 
the assistance provided. The report shall set forth--
            ``(1) a description of the assistance provided;
            ``(2) the amount expended by the Department in providing the 
        assistance;

[[Page 110 STAT. 2497]]

            ``(3) if the assistance was provided under subsection (a), 
        the certification of the Attorney General with respect to the 
        assistance under that subsection; and
            ``(4) if the assistance was provided under subsection (b)--
                    ``(A) an explanation why the assistance could not 
                reasonably be met by a source other than the Department; 
                and
                    ``(B) the amount the Department was reimbursed under 
                that subsection.

    ``(f) Relationship to Other Laws.--Assistance provided under this 
section shall be subject to the provisions of sections 375 and 376 of 
this title.''.

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

``2554. Provision of support for certain sporting events.''.

SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

    (a) Storage Authorized.--(1) Section 2634 of title 10, United States 
Code, is amended--
            (A) by redesignating subsection (b) as subsection (g);
            (B) by transferring subsection (g), as so redesignated, to 
        the end of such section; and
            (C) by inserting after subsection (a) the following new 
        subsection:

    ``(b)(1) In lieu of transportation authorized by this section, if a 
member is ordered to make a change of permanent station to a foreign 
country and the laws, regulations, or other restrictions imposed by the 
foreign country or the United States preclude entry of a motor vehicle 
described in subsection (a) into that country, or would require 
extensive modification of the vehicle as a condition to entry, the 
member may elect to have the vehicle stored at the expense of the United 
States at a location approved by the Secretary concerned.
    ``(2) If a member is transferred or assigned in connection with a 
contingency operation to duty at a location other than the permanent 
station of the member for a period of more than 30 consecutive days, but 
the transfer or assignment is not considered a change of permanent 
station, the member may elect to have a motor vehicle described in 
subsection (a) stored at the expense of the United States at a location 
approved by the Secretary concerned.
    ``(3) Authorized expenses under this subsection include costs 
associated with the delivery of the motor vehicle for storage and 
removal of the vehicle for delivery to a destination approved by the 
Secretary concerned.''.
    (2)(A) The heading of such section is amended to read as follows:

[[Page 110 STAT. 2498]]

``Sec. 2634. Motor vehicles: transportation or storage for members 
                    on change of permanent station or extended 
                    deployment''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 157 of title 10, United States Code, is amended 
to read as follows:

``2634. Motor vehicles: transportation or storage for members on change 
           of permanent station or extended deployment.''.

    (b) Conforming Amendment.--Subparagraph (B) of section 406(h)(1) of 
title 37, United States Code, is amended to read as follows:
            ``(B) in the case of a member described in paragraph (2)(A), 
        authorize the transportation of one motor vehicle, which is 
        owned or leased by the member (or a dependent of the member) and 
        is for the personal use of a dependent of the member, to that 
        location by means of transportation authorized under section 
        2634 of title 10 or authorize the storage of the motor vehicle 
        pursuant to subsection (b) of such section.''.

    (c) <<NOTE: 10 USC 2634 note.>>  Effective Date.--The amendments 
made by this section shall take effect on April 1, 1997.
SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE FACILITIES 
                        IN NATIONAL CAPITAL REGION.

    (a) Expansion of Authority.--Subsection (b) of section 2674 of title 
10, United States Code, is amended by striking out ``at the Pentagon 
Reservation'' and inserting in lieu thereof ``in the National Capital 
Region''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:
``Sec. 2674. Operation and control of Pentagon Reservation and 
                    defense facilities in National Capital 
                    Region''.

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

``2674. Operation and control of Pentagon Reservation and defense 
           facilities in National Capital Region.''.

SEC. 370. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER NAVAL ACADEMY 
            SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND INSTRUMENTALITY.

    (a) In General.--Section 6971 of title 10, United States Code, is 
amended to read as follows:
 ``Sec. 6971. Midshipmen's store, trade shops, dairy, and laundry: 
                    nonappropriated fund instrumentality and 
                    accounts

    ``(a) Operation as Nonappropriated Fund Instrumentality.--The 
Superintendent of the Naval Academy shall operate the Naval Academy 
activities referred to in subsection (b) as a nonappropriated fund 
instrumentality under the jurisdiction of the Navy.
    ``(b) Covered Activities.--The nonappropriated fund instrumentality 
required under subsection (a) shall consist of the following Naval 
Academy activities:
            ``(1) The midshipmen's store.
            ``(2) The barber shop.

[[Page 110 STAT. 2499]]

            ``(3) The cobbler shop.
            ``(4) The tailor shop.
            ``(5) The dairy.
            ``(6) The laundry.

    ``(c) Nonappropriated Fund Accounts.--The Superintendent of the 
Naval Academy shall administer a separate nonappropriated fund account 
for each of the Naval Academy activities included in the nonappropriated 
fund instrumentality required under subsection (a).
    ``(d) Crediting of Revenue.--The Superintendent shall credit all 
revenue received from a Naval Academy activity referred to in subsection 
(b) to the account administered with respect to that activity under 
subsection (c), and amounts so credited shall be available for operating 
expenses of that activity.
    ``(e) Regulations.--This section shall be carried out under 
regulations prescribed by the Secretary of the Navy.''.
    (b) Civil Service Employment Status of Employees of Covered 
Activities.--Section 2105(b) of title 5, United States Code, is 
amended--
            (1) by inserting ``who is'' after ``An individual''; and
            (2) by inserting ``and whose employment in such a position 
        began before October 1, 1996, and has been uninterrupted in such 
        a position since that date'' after ``Academy dairy,''.

    (c) Conforming Repeal.--Section 6970 of title 10, United States 
Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 603 of title 10, United States Code, is amended by striking out 
the items relating to sections 6970 and 6971 and inserting in lieu 
thereof the following new item:

``6971. Midshipmen's store, trade shops, dairy, and laundry: 
           nonappropriated fund instrumentality and accounts.''.

    (e) <<NOTE: 5 USC 2105 note.>>  Effective Date.--The amendments made 
by this section shall take effect on October 1, 1996.
SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION OF 
                        CIVILIAN STUDENTS AT FOREIGN LANGUAGE 
                        INSTITUTE OF THE DEFENSE LANGUAGE 
                        INSTITUTE.

    (a) Authority to Accept Reimbursement In Kind.--Section 559(a)(1) of 
the National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2776; 10 U.S.C. 4411 note) is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection:

    ``(c) Reimbursement Options for Certain Instruction.--In the case of 
instruction provided to students described in subsection (a)(1), the 
Secretary may provide the instruction on a cost-reimbursable basis, a 
reimbursement-in-kind basis, or a combination of both options. 
Regardless of the reimbursement option, the value of the reimbursement 
received under this subsection may not be less than the amount charged 
for providing language instruction to Federal employees who are not 
Department of Defense employees. The Secretary may not delegate the 
authority to accept an offer for in-kind reimbursement below the level 
of the Assistant Secretary of the Army.''.

[[Page 110 STAT. 2500]]

    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (a)(1), by striking out ``cost-reimburs-
        able,''; and
            (2) in subsection (d), as redesignated by subsection (a)(1) 
        of this section, by striking out ``subsection (a)'' the first 
        place it appears and inserting in lieu thereof ``subsection (a) 
        or (c)''.
SEC. 372. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                        DEPENDENTS OF MEMBERS OF THE ARMED FORCES 
                        AND DEPARTMENT OF DEFENSE CIVILIAN 
                        EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
1997.--Of the amounts authorized to be appropriated in section 301(5)--
            (1) $30,000,000 shall be available for providing educational 
        agencies assistance (as defined in subsection (d)(1)) to local 
        educational agencies; and
            (2) $5,000,000 shall be available for making educational 
        agencies payments (as defined in subsection (d)(2)) to local 
        educational agencies.

    (b) Notification.--Not later than June 30, 1997, the Secretary of 
Defense shall--
            (1) notify each local educational agency that is eligible 
        for educational agencies assistance for fiscal year 1997 of that 
        agency's eligibility for such assistance and the amount of such 
        assistance for which that agency is eligible; and
            (2) notify each local educational agency that is eligible 
        for an educational agencies payment for fiscal year 1997 of that 
        agency's eligibility for such payment and the amount of the 
        payment for which that agency is eligible.

    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under paragraphs (1) and (2) of subsection (a) not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``educational agencies payments'' means 
        payments authorized under section 386(d) of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
        U.S.C. 7703 note).
            (3) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND 
                        ACCOUNTING SERVICE CENTER, FORT BENJAMIN 
                        HARRISON, INDIANA.

    (a) Transfer Authority.--To pay the costs of planning, design, and 
renovation of Building One, Fort Benjamin Harrison, Indiana, for use as 
a Defense Finance and Accounting Service Center, the Secretary of 
Defense may transfer to the Administrator of General Services in the 
manner provided in subsection (b) funds available

[[Page 110 STAT. 2501]]

to the Department of Defense for the Defense Finance and Accounting 
Service for a fiscal year for operation and maintenance.
    (b) Authority Subject to Authorizations and Appropriations.--To the 
extent provided in appropriations Acts--
            (1) of funds described in subsection (a) and appropriated 
        for fiscal year 1997, $9,000,000 may be transferred under such 
        subsection; and
            (2) of funds described in subsection (a) and appropriated 
        for fiscal years 1998, 1999, 2000, and 2001, funds may be 
        transferred under such subsection in such amounts as are 
        authorized to be transferred in an Act enacted after the date of 
        the enactment of this Act.

    (c) <<NOTE: Effective date.>>  Authority Subject To Agreement 
Between Department of Defense and General Services Administration.--The 
transfer authority provided in subsection (a) shall not take effect 
until the date on which the Secretary of Defense and the Administrator 
of General Services enter into an agreement that provides for the 
Department of Defense to receive a full reimbursement for the funds 
transferred under such subsection. Such reimbursement may include 
reimbursement in the form of reduced or static rental rates for Building 
One.

SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

    (a) Program Authorized.--The Secretaries of the military departments 
and the Secretary of Transportation may each carry out a food donation 
pilot program at the service academy under the jurisdiction of such 
Secretary.
    (b) Donations and Collections of Food and Grocery Products.--Under 
the pilot program, the Secretary concerned may donate to, and permit 
others to collect for, a nonprofit organization any food or grocery 
product that--
            (1) is--
                    (A) an apparently wholesome food;
                    (B) an apparently fit grocery product; or
                    (C) a food or grocery product that is donated in 
                accordance with section 402(e) of the National and 
                Community Service Act of 1990 (42 U.S.C. 12672(e));
            (2) is owned by the United States;
            (3) is located at a service academy under the jurisdiction 
        of such Secretary; and
            (4) is excess to the requirements of the academy.

    (c) Program Commencement.--The Secretary concerned shall commence 
carrying out the pilot program, if at all, during fiscal year 1997.
    (d) Applicability of Good Samaritan Food Donation Act.--Section 402 
of the National and Community Service Act of 1990 (42 U.S.C. 12672) 
shall apply to donations and collections of food and grocery products 
under the pilot program without regard to section 403 of such Act (42 
U.S.C. 12673).
    (e) Reports.--(1) Each Secretary that carries out a pilot program at 
a service academy under this section shall submit to Congress an interim 
report and a final report on the pilot program.
    (2) The Secretary concerned shall submit the interim report not 
later than one year after the date on which the Secretary commences the 
pilot program at a service academy.

[[Page 110 STAT. 2502]]

    (3) The Secretary concerned shall submit the final report not later 
than 90 days after the Secretary completes the pilot program at a 
service academy.
    (4) Each report shall include the following:
            (A) A description of the conduct of the pilot program.
            (B) A discussion of the experience under the pilot program.
            (C) An evaluation of the extent to which section 402 of the 
        National and Community Service Act of 1990 (42 U.S.C. 12672) has 
        been effective in protecting the United States and others from 
        liabilities associated with actions taken under the pilot 
        program.
            (D) Any recommendations for legislation to facilitate 
        donations or collections of excess food and grocery products of 
        the United States or others for nonprofit organizations.

    (f) Definitions.--For purposes of this section:
            (1) The term ``service academy'' means each of the 
        following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.
                    (D) The United States Coast Guard Academy.
            (2) The term ``Secretary concerned'' means the following:
                    (A) The Secretary of the Army, with respect to the 
                United States Military Academy.
                    (B) The Secretary of the Navy, with respect to the 
                United States Naval Academy.
                    (C) The Secretary of the Air Force, with respect to 
                the United States Air Force Academy.
                    (D) The Secretary of Transportation, with respect to 
                the United States Coast Guard Academy.
            (3) The terms ``apparently fit grocery product'', 
        ``apparently wholesome food'', ``donate'', ``food'', and 
        ``grocery product'' have the meanings given those terms in 
        section 402(b) of the National and Community Service Act of 1990 
        (42 U.S.C. 12672(b)).
SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN 
                        SERVICES AT LINCOLN MUNICIPAL AIRPORT, 
                        LINCOLN, NEBRASKA.

    (a) Authority.--The Nebraska Air National Guard may provide fire 
protection services and rescue services relating to aircraft at Lincoln 
Municipal Airport, Lincoln, Nebraska, on behalf of the Lincoln Municipal 
Airport Authority, Lincoln, Nebraska.
    (b) Agreement.--The Nebraska Air National Guard may not provide 
services under subsection (a) until the Nebraska Air National Guard and 
the authority enter into an agreement under which the authority agrees--
            (1) to reimburse the Nebraska Air National Guard for the 
        cost of the services provided; and
            (2) to hold harmless and indemnify the United States, except 
        in cases of willful misconduct or gross negligence, from any 
        claim for damages or injury to any person or property arising 
        out of the provision of, or the failure to provide, such 
        services.

    (c) Effect on Military Preparedness.--Services may only be provided 
under subsection (a) to the extent that the provision of such services 
does not adversely affect the military preparedness of the Armed Forces.

[[Page 110 STAT. 2503]]

SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID 
                        PROGRAM.

    Paragraph (3) of section 8003(a) of the Elementary and  Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)) is amended by striking out 
``2,000 and such number equals or exceeds 15'' and inserting in lieu 
thereof ``1,000 or such number equals or exceeds 10''.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
                    contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
                    in grades of major, lieutenant colonel, and colonel 
                    and navy grades of lieutenant commander, commander, 
                    and captain.
Sec. 404. Extension of requirement for recommendations regarding 
                    appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
                    duty in the Marine Corps.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
                    Reserves.
Sec. 413. End strengths for military technicians.
Sec. 414. Assurance of continued assignment of military personnel to 
                    serve in 
                    Selective Service System.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

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

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1997, as follows:
            (1) The Army, 495,000.
            (2) The Navy, 407,318.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 381,100.

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

    (a) Requirement To Budget for and Maintain Statutory End Strength 
Levels.--Section 691 of title 10, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by striking out subsection (c) and inserting in lieu 
        thereof the following:

    ``(c) The budget for the Department of Defense for any fiscal year 
as submitted to Congress shall include amounts for funding for each of 
the armed forces (other than the Coast Guard) at least in the amounts 
necessary to maintain the active duty end strengths prescribed in 
subsection (b), as in effect at the time that such budget is submitted.

[[Page 110 STAT. 2504]]

    ``(d) No funds appropriated to the Department of Defense may be used 
to implement a reduction of the active duty end strength for any of the 
armed forces (other than the Coast Guard) for any fiscal year below the 
level specified in subsection (b) unless the reduction in end strength 
for that armed force for that fiscal year is specifically authorized by 
law.''.
    (b) Temporary Flexibility Relating to Permanent End Strength 
Levels.--Subsection (e) of such section, as redesignated by subsection 
(a)(1), is amended by striking out ``not more than 0.5 percent'' and 
inserting in lieu thereof ``not more than 1 percent''.
SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS ON ACTIVE 
                        DUTY IN GRADES OF MAJOR, LIEUTENANT 
                        COLONEL, AND COLONEL AND NAVY GRADES OF 
                        LIEUTENANT COMMANDER, COMMANDER, AND 
                        CAPTAIN.

    (a) Revision in Army, Air Force, and Marine Corps Limitations.--The 
table in paragraph (1) of section 523(a) of title 10, United States 
Code, is amended to read as follows:
      

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on
                                                                           active duty in the grade of:
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant
                                                                       Major          Colonel         Colonel
----------------------------------------------------------------------------------------------------------------
Army:
  20,000........................................................           6,848           5,253        1,613
  25,000........................................................           7,539           5,642        1,796
  30,000........................................................           8,231           6,030        1,980
  35,000........................................................           8,922           6,419        2,163
  40,000........................................................           9,614           6,807        2,347
  45,000........................................................          10,305           7,196        2,530
  50,000........................................................          10,997           7,584        2,713
  55,000........................................................          11,688           7,973        2,897
  60,000........................................................          12,380           8,361        3,080
  65,000........................................................          13,071           8,750        3,264
  70,000........................................................          13,763           9,138        3,447
  75,000........................................................          14,454           9,527        3,631
  80,000........................................................          15,146           9,915        3,814
  85,000........................................................          15,837          10,304        3,997
  90,000........................................................          16,529          10,692        4,181
  95,000........................................................          17,220          11,081        4,364
  100,000.......................................................          17,912          11,469        4,548
  110,000.......................................................          19,295          12,246        4,915
  120,000.......................................................          20,678          13,023        5,281
  130,000.......................................................          22,061          13,800        5,648
  170,000.......................................................          27,593          16,908        7,116
Air Force:
  35,000........................................................           9,216           7,090        2,125
  40,000........................................................          10,025           7,478        2,306
  45,000........................................................          10,835           7,866        2,487
  50,000........................................................          11,645           8,253        2,668
  55,000........................................................          12,454           8,641        2,849
  60,000........................................................          13,264           9,029        3,030
  65,000........................................................          14,073           9,417        3,211

[[Page 110 STAT. 2505]]

 
  70,000........................................................          14,883           9,805        3,392
  75,000........................................................          15,693          10,193        3,573
  80,000........................................................          16,502          10,582        3,754
  85,000........................................................          17,312          10,971        3,935
  90,000........................................................          18,121          11,360        4,115
  95,000........................................................          18,931          11,749        4,296
  100,000.......................................................          19,741          12,138        4,477
  105,000.......................................................          20,550          12,527        4,658
  110,000.......................................................          21,360          12,915        4,838
  115,000.......................................................          22,169          13,304        5,019
  120,000.......................................................          22,979          13,692        5,200
  125,000.......................................................          23,789          14,081        5,381
Marine Corps:
  10,000........................................................           2,525           1,480          571
  12,500........................................................           2,900           1,600          592
  15,000........................................................           3,275           1,720          613
  17,500........................................................           3,650           1,840          633
  20,000........................................................           4,025           1,960          654
  22,500........................................................           4,400           2,080          675
  25,000........................................................           4,775           2,200          695.''
----------------------------------------------------------------------------------------------------------------


    (b) Revision in Navy Limitations.--The table in paragraph (2) of 
such section is amended to read as follows:
      

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on
                                                                             active duty in grade of:
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:        Lieutenant
                                                                     commander       Commander        Captain
----------------------------------------------------------------------------------------------------------------
Navy:
  30,000........................................................           7,331           5,018        2,116
  33,000........................................................           7,799           5,239        2,223
  36,000........................................................           8,267           5,460        2,330
  39,000........................................................           8,735           5,681        2,437
  42,000........................................................           9,203           5,902        2,544
  45,000........................................................           9,671           6,123        2,651
  48,000........................................................          10,139           6,343        2,758
  51,000........................................................          10,606           6,561        2,864
  54,000........................................................          11,074           6,782        2,971
  57,000........................................................          11,541           7,002        3,078
  60,000........................................................          12,009           7,222        3,185
  63,000........................................................          12,476           7,441        3,292
  66,000........................................................          12,944           7,661        3,398
  70,000........................................................          13,567           7,954        3,541
  90,000........................................................          16,683           9,419        4,254.''
----------------------------------------------------------------------------------------------------------------


    (c) Repeal of Temporary Authority for Variations in End Strengths.--
The following provisions of law are repealed:

[[Page 110 STAT. 2506]]

            (1) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1639; 10 
        U.S.C. 523 note).
            (2) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2743; 10 
        U.S.C. 523 note).
            (3) Section 402 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 286; 10 
        U.S.C. 523 note).

    (d) <<NOTE: 10 USC 523 note.>>  Effective Date.--The amendments made 
by subsections (a), (b), and (c) shall take effect on September 1, 1997.

SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS REGARDING 
            APPOINTMENTS TO JOINT 4-STAR OFFICER POSITIONS.

    (a) Service Secretary Recommendation Required.--Section 604(c) of 
title 10, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 2000''.
    (b) Grade Relief When Recommendation Made.--Section 525(b)(5)(C) of 
such title is amended by striking out ``September 30, 1997'' and 
inserting in lieu thereof ``September 30, 2000''.
SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS ON 
                        ACTIVE DUTY IN THE MARINE CORPS.

    Section 526(a)(4) of title 10, United States Code, is amended by 
striking out ``68'' and inserting in lieu thereof ``80''.

                       Subtitle B--Reserve Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
1997, as follows:
            (1) The Army National Guard of the United States, 366,758.
            (2) The Army Reserve, 215,179.
            (3) The Naval Reserve, 96,304.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 109,178.
            (6) The Air Force Reserve, 73,311.
            (7) The Coast Guard Reserve, 8,000.

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

[[Page 110 STAT. 2507]]

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

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 1997, 
the following number of Reserves to be serving on full-time active duty 
or full-time duty, in the case of members of the National Guard, for the 
purpose of organizing, administering, recruiting, instructing, or 
training the reserve components:
            (1) The Army National Guard of the United States, 22,798.
            (2) The Army Reserve, 11,729.
            (3) The Naval Reserve, 16,603.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,403.
            (6) The Air Force Reserve, 655.

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

    (a) Authorization for Fiscal Year 1997.--The minimum number of 
military technicians as of the last day of fiscal year 1997 for the 
reserve components of the Army and the Air Force (notwithstanding 
section 129 of title 10, United States Code) shall be the following:
            (1) For the Army Reserve, 6,799.
            (2) For the Army National Guard of the United States, 
        25,500.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United States, 23,299.

    (b) Information To Be Provided With Future Authorization Requests.--
Section 10216 of title 10, United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Information Required To Be Submitted With Annual End Strength 
Authorization Request.--(1) The Secretary of Defense shall include as 
part of the budget justification documents submitted to Congress with 
the budget of the Department of Defense for any fiscal year the 
following information with respect to the end strengths for military 
technicians requested in that budget pursuant to section 115(g) of this 
title, shown separately for each of the Army and Air Force reserve 
components:
            ``(A) The number of dual-status technicians in the high 
        priority units and organizations specified in subsection (a)(1).
            ``(B) The number of technicians other than dual-status 
        technicians in the high priority units and organizations 
        specified in subsection (a)(1).
            ``(C) The number of dual-status technicians in other than 
        high priority units and organizations specified in subsection 
        (a)(1).
            ``(D) The number of technicians other than dual-status 
        technicians in other than high priority units and organizations 
        specified in subsection (a)(1).

[[Page 110 STAT. 2508]]

    ``(2)(A) If the budget submitted to Congress for any fiscal year 
requests authorization for that fiscal year under section 115(g) of this 
title of a military technician end strength for a reserve component of 
the Army or Air Force in a number that constitutes a reduction from the 
end strength minimum established by law for that reserve component for 
the fiscal year during which the budget is submitted, the Secretary of 
Defense shall submit to the congressional defense committees with that 
budget a justification providing the basis for that requested reduction 
in technician end strength.
    ``(B) Any justification submitted under subparagraph (A) shall 
clearly delineate--
            ``(i) in the case of a reduction that includes a reduction 
        in technicians described in subparagraph (A) or (C) of paragraph 
        (1), the specific force structure reductions forming the basis 
        for such requested technician reduction (and
the numbers related to those force structure reductions); and
            ``(ii) in the case of a reduction that includes reductions 
        in technicians described in subparagraphs (B) or (D) of 
        paragraph (1), the specific force structure reductions, 
        Department of Defense civilian personnel reductions, or other 
        reasons forming the basis for such requested technician 
        reduction (and the numbers related to those reductions).''.

    (c) Technical Amendments.--Such section is further 
amended--
            (1) in subsection (a), by striking out ``section 115'' and 
        inserting in lieu thereof ``section 115(g)''; and
            (2) in subsection (c), as redesignated by subsection (b)(1), 
        by striking out ``after the date of the enactment of this 
        section'' both places it appears and inserting in lieu thereof 
        ``after February 10, 1996,''.
SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY PERSONNEL 
                        TO SERVE IN SELECTIVE SERVICE SYSTEM.

    (a) Number of Military Personnel To Be Assigned.--Section 10 of the 
Military Selective Service Act (50 U.S.C. App. 460) is amended--
            (1) in subsection (b)(2), by inserting ``, subject to 
        subsection (e),'' after ``to employ such number of civilians, 
        and''; and
            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e) The total number of armed forces personnel assigned to the 
Selective Service System under subsection (b)(2) at any time may not be 
less than the number of such personnel determined by the Director of 
Selective Service to be necessary, but not to exceed 745 persons, except 
that the President may assign additional armed forces personnel to the 
Selective Service System during a time of war or a national emergency 
declared by Congress or the President.''.
    (b) Stylistic Amendments.--Subsection (b) of such section is 
amended--
            (1) by striking out ``authorized--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``authorized to 
        undertake the following:'';
            (2) by striking out ``to'' at the beginning of paragraphs 
        (1) through (7) and inserting in lieu thereof ``To'';

[[Page 110 STAT. 2509]]

            (3) by striking out ``subject'' at the beginning of 
        paragraphs (8), (9), and (10) and inserting in lieu thereof 
        ``Subject''; and
            (4) by striking out the semicolon at the end of paragraphs 
        (1) through (9) and inserting in lieu thereof a period.

               Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1997 a total of 
$70,056,130,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1997.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.
Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force 
                    Nurse Corps.
Sec. 503. Navy spot promotion authority for certain lieutenants with 
                    critical skills.
Sec. 504. Time for award of degrees by unaccredited educational 
                    institutions for graduates to be considered 
                    educationally qualified for appointment as Reserve 
                    officers in grade O-3.
Sec. 505. Exception to baccalaureate degree requirement for appointment 
                    in the Naval Reserve in grades above O-2.
Sec. 506. Chief warrant officer promotions.
Sec. 507. Service credit for senior ROTC cadets and midshipmen in 
                    simultaneous membership program.
Sec. 508. Continuation on active status for certain Reserve officers of 
                    the Air Force.
Sec. 509. Reports on response to recommendations concerning improvements 
                    to 
                    Department of Defense joint manpower process.
Sec. 510. Frequency of reports to Congress on joint officer management 
                    policies.

                  Subtitle B--Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 
                    years of 
                    service.
Sec. 512. Authority to extend period for entry on active duty under the 
                    delayed entry program.

                    Subtitle C--Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.
Sec. 522. Clarification of definition of active status.
Sec. 523. Limitation of requirement for physical examinations of members 
                    of 
                    National Guard called into Federal service.

                Subtitle D--Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training 
                    creditable 
                    toward reserve retirement.
Sec. 532. Retirement of reserve enlisted members who qualify for active 
                    duty 
                    retirement after administrative reduction in 
                    enlisted grade.
Sec. 533. Authority for a Reserve on active duty to waive retirement 
                    sanctuary.
Sec. 534. Eligibility of Reserves for disability retirement.

               Subtitle E--Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the 
                    Reserves.
Sec. 542. Eligibility for enrollment in Ready Reserve mobilization 
                    income insurance program.
Sec. 543. Reserve credit for participation in Health Professions 
                    Scholarship and 
                    Financial Assistance Program.

[[Page 110 STAT. 2510]]

Sec. 544. Amendments to Reserve Officer Personnel Management Act 
                    provisions.
Sec. 545. Report on number of advisers in active component support of 
                    Reserves pilot program.
Sec. 546. Sense of Congress and report regarding reemployment rights for 
                    mobilized Reservists employed in foreign countries.
Sec. 547. Payment of premiums under Mobilization Income Insurance 
                    Program.

                 Subtitle F--Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers' Training 
                    Corps program.
Sec. 552. Prohibition on reorganization of Army ROTC cadet command or 
                    termination of senior ROTC units pending report on 
                    ROTC.
Sec. 553. Pilot program to test expansion of ROTC program to include 
                    graduate students.
Sec. 554. Demonstration project for instruction and support of Army ROTC 
                    units by members of the Army Reserve and National 
                    Guard.
Sec. 555. Extension of maximum age for appointment as a cadet or 
                    midshipman in the Senior Reserve Officers' Training 
                    Corps and the service academies.
Sec. 556. Expansion of eligibility for education benefits to include 
                    certain Reserve Officers' Training Corps (ROTC) 
                    participants.
Sec. 557. Comptroller General report on cost and policy implications of 
                    permitting up to five percent of service academy 
                    graduates to be assigned directly to Reserve duty 
                    upon graduation.

                   Subtitle G--Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African 
                    American 
                    soldiers who served during World War II.
Sec. 562. Waiver of time limitations for award of certain decorations to 
                    specified persons.
Sec. 563. Replacement of certain American Theater Campaign Ribbons.

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
                    educational or emergency purposes.
Sec. 573. Clarification of authority of a reserve judge advocate to act 
                    as a military notary public when not in a duty 
                    status.
Sec. 574. Panel on jurisdiction of courts-martial for the National Guard 
                    when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
                    include firefighters.
Sec. 576. Improvements to program to assist separated military and 
                    civilian 
                    personnel to obtain employment as teachers or 
                    teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
                    physical disability is found at any physical 
                    examination.
Sec. 578. Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on 
                    crediting cadet or midshipmen service at the service 
                    academies.
Sec. 582. Exception to strength limitations for Public Health Service 
                    officers 
                    assigned to the Department of Defense.
Sec. 583. Authority to provide legal assistance to Public Health Service 
                    officers.

                  Subtitle A--Officer Personnel Policy

SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

    (a) Rear Admiral (Upper Half).--Section 5022(a) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:

    ``(2) Unless appointed to higher grade under another provision of 
law, an officer, while serving in the Office of Naval Research as Chief 
of Naval Research, has the rank of rear admiral (upper half).''.
    (b) <<NOTE: 10 USC 5022 note.>>  Effective Date.--Paragraph (2) of 
section 5022(a) of title 10, United States Code, as added by subsection 
(a), shall take

[[Page 110 STAT. 2511]]

effect upon the occurrence of the first vacancy in the position of Chief 
of Naval Research after the date of the enactment of this Act.
Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND AIR 
                        FORCE NURSE CORPS.

    (a) Army Nurse Corps.--(1) Subsection (b) of section 3069 of title 
10, United States Code, is amended--
            (A) in the first sentence, by striking out ``major'' and 
        inserting in lieu thereof ``lieutenant colonel'';
            (B) by inserting after the first sentence the following: 
        ``An appointee who holds a lower regular grade shall be 
        appointed in the regular grade of brigadier general.''; and
            (C) in the last sentence, by inserting ``to the same 
        position'' before the period at the end.

    (2) Subsection (c) of such section is amended by striking out 
``major'' in the first sentence and inserting in lieu thereof 
``lieutenant colonel''.
    (3) The heading of such section is amended to read as follows:
 ``Sec. 3069. Army Nurse Corps: composition; Chief and assistant 
                    chief; appointment; grade

    (b) Air Force Nurse Corps.--Chapter 807 of such title is amended by 
inserting after section 8067 the following new section:
 ``Sec. 8069. Air Force nurses: Chief and assistant chief; 
                    appointment; grade

    ``(a) Positions of Chief and Assistant Chief.--There are a Chief and 
assistant chief of the Air Force Nurse Corps.
    ``(b) Chief.--The Secretary of the Air Force shall appoint the Chief 
from the officers of the Regular Air Force designated as Air Force 
nurses whose regular grade is above lieutenant colonel and who are 
recommended by the Surgeon General. An appointee who holds a lower 
regular grade shall be appointed in the regular grade of brigadier 
general. The Chief serves during the pleasure of the Secretary, but not 
for more than three years, and may not be reappointed to the same 
position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Air Force designated as 
Air Force nurses whose regular grade is above lieutenant colonel.''.
    (c) Clerical Amendments.--(1) The item relating to section 3069 in 
the table of sections at the beginning of chapter 307 of such title is 
amended to read as follows:
``3069. Army Nurse Corps: composition; Chief and assistant chief; 
                    appointment; grade.''.

    (2) The table of sections at the beginning of chapter 807 of such 
title is amended by inserting after the item relating to section 8067 
the following new item:
``8069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
                    grade.''.

Sec. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN 
            LIEUTENANTS WITH CRITICAL SKILLS.

    (a) Advice-and-Consent Appointments.--Subsection (a) of section 5721 
of title 10, United States Code, is amended by striking out ``the 
President alone'' and inserting in lieu thereof ``the President, by and 
with the advice and consent of the Senate''.

[[Page 110 STAT. 2512]]

    (b) Repeal of Termination of Authority.--Such section is further 
amended by striking out subsection (g).

    (c) Clerical Amendment.--The caption for subsection (a) is amended 
to read as follows: ``Promotion Authority for Certain Officers With 
Critical Skills.--''.
SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED 
                        EDUCATIONAL INSTITUTIONS FOR GRADUATES TO 
                        BE CONSIDERED EDUCATIONALLY QUALIFIED FOR 
                        APPOINTMENT AS RESERVE OFFICERS IN GRADE 
                        O-3.

    Section 12205(c)(2)(C) of title 10, United States Code, is amended 
by striking out ``three years'' and inserting in lieu thereof ``eight 
years''.
SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
                        APPOINTMENT IN THE NAVAL RESERVE IN GRADES 
                        ABOVE O-2.

    Section 12205(b)(3) of title 10, United States Code, is amended by 
inserting ``or the Seaman to Admiral program'' after ``(NAVCAD) 
program''.
SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

    (a) Reduction of Minimum Time in Grade Required for Consideration 
for Promotion.--Section 574(e) of title 10, United States Code, is 
amended by striking out ``three years of service'' and inserting in lieu 
thereof ``two years of service''.
    (b) Below-Zone Selection.--Section 575(b)(1) of such title is 
amended by inserting ``chief warrant officer, W-3,'' in the first 
sentence after ``to consider warrant officers for selection for 
promotion to the grade of''.
SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN 
                        SIMULTANEOUS MEMBERSHIP PROGRAM.

    (a) Amendments to Title 10.--(1) Section 2106(c) of title 10, United 
States Code, is amended by striking out ``while serving on active duty 
other than for training after July 31, 1990, while a member of the 
Selected Reserve'' and inserting in lieu thereof ``performed on or after 
August 1, 1979, as a member of the Selected Reserve''.
    (2) Section 2107(g) of such title is amended by striking out ``while 
serving on active duty other than for training after July 31, 1990, 
while a member of the Selected Reserve'' and inserting in lieu thereof 
``performed on or after August 1, 1979, as a member of the Selected 
Reserve''.
    (3) Section 2107a(g) of such title is amended by inserting 
``, other than enlisted service performed after August 1, 1979, as a 
member of Selected Reserve'' after ``service as a cadet or with 
concurrent enlisted service''.
    (b) Amendment to Title 37.--Section 205(d) of title 37, United 
States Code, is amended by striking out ``that service after July 31, 
1990, that the officer performed while serving on active duty'' and 
inserting in lieu thereof ``for service that the officer performed on or 
after August 1, 1979.''.
    (c) <<NOTE: 10 USC 2106 note.>>  Benefits Not To Accrue for Prior 
Periods.--No increase in pay or retired or retainer pay shall accrue for 
periods before the date of the enactment of this Act by reason of the 
amendments made by this section.

[[Page 110 STAT. 2513]]

SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE 
                        OFFICERS OF THE AIR FORCE.

    (a) Authority.--Section 14507 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Temporary Authority To Retain Certain Officers Designated as 
Judge Advocates.--(1) Notwithstanding the provisions of subsections (a) 
and (b), the Secretary of the Air Force may retain on the reserve 
active-status list any reserve officer of the Air Force who is 
designated as a judge advocate and who obtained the first professional 
degree in law while on an educational delay program subsequent to being 
commissioned through the Reserve Officers' Training Corps.
    ``(2) No more than 50 officers may be retained on the reserve 
active-status list under the authority of paragraph (1) at any time.
    ``(3) No officer may be retained on the reserve active-status list 
under the authority of paragraph (1) for a period exceeding three years 
from the date on which, but for that authority, that officer would have 
been removed from the reserve active-status list under subsection (a) or 
(b).
    ``(4) <<NOTE: Expiration date.>>  The authority of the Secretary of 
the Air Force under paragraph (1) expires on September 30, 2003.''.

  (b) <<NOTE: 10 USC 14507 note.>>  Effective Date.--Subsection (c) of 
section 14507 of title 10, United States Code, as added by subsection 
(a), shall take effect on October 1, 1996.
SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING 
                        IMPROVEMENTS TO DEPARTMENT OF DEFENSE 
                        JOINT MANPOWER PROCESS.

    (a) Semiannual Report.--The Secretary of Defense shall submit to 
Congress a semiannual report on the status of actions taken by the 
Secretary to implement the recommendations made by the Department of 
Defense Inspector General in the report of November 29, 1995, entitled 
``Inspection of the Department of Defense Joint Manpower Process'' 
(Report No. 96-029). The first such report shall be submitted not later 
than February 1, 1997. The requirement <<NOTE: Termination date.>> to 
submit such reports terminates after the fourth such report is 
submitted.

    (b) Additional Matter for First Report.--As part of the first report 
under subsection (a), the Secretary shall include the following:
            (1) The Secretary's assessment as to the need to establish a 
        joint, centralized permanent organization in the Department of 
        Defense to determine, validate, approve, and manage military and 
        civilian manpower requirements resources at joint organizations.
            (2) The Secretary's assessment of the Department of Defense 
        timeline and plan to increase the capability of the joint 
        professional military education system (including the Armed 
        Forces Staff College) to overcome the capacity limitations cited 
        in the report referred to in subsection (a).
            (3) The Secretary's plan and timeline to provide the 
        necessary training and education of reserve component officers.

    (c) GAO Assessment.--The Comptroller General of the United States 
shall assess the completeness and adequacy of the corrective actions 
taken by the Secretary with respect to the matters covered in the 
Inspector General report referred to in subsection (a). Not later than 
one year after the date of the enactment of this Act,

[[Page 110 STAT. 2514]]

the Comptroller General shall submit to Congress a report, based on the 
assessment under this subsection, providing the Comptroller General's 
findings and recommendations.
SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER 
                        MANAGEMENT POLICIES.

    (a) Change from Semiannual to Annual Report.--Section 662(b) of 
title 10, United States Code, is amended by striking out ``Report.--The 
Secretary of Defense shall periodically (and not less often than every 
six months) report to Congress on the promotion rates'' and inserting in 
lieu thereof ``Annual Report.--Not later than January 1 of each year, 
the Secretary of Defense shall submit to Congress a report on the 
promotion rates during the preceding fiscal year''.
    (b) Technical and Conforming Amendments.--Such section is further 
amended--
            (1) in the first sentence, by striking out ``clauses'' and 
        inserting in lieu thereof ``paragraphs''; and
            (2) in the second sentence--
                    (A) by inserting ``for any fiscal year'' after 
                ``such objectives''; and
                    (B) by striking out ``periodic report required by 
                this subsection'' and inserting in lieu thereof ``report 
                for that fiscal year''.

                  Subtitle B--Enlisted Personnel Policy

SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT LEAST 
                        10 YEARS OF SERVICE.

    Subsection (d) of section 505 of title 10, United States Code, is 
amended to read as follows:
    ``(d)(1) The Secretary concerned may accept a reenlistment in the 
Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps, or 
Regular Coast Guard, as the case may be, for a period determined under 
this subsection.
    ``(2) In the case of a member who has less than 10 years of service 
in the armed forces as of the day before the first day of the period for 
which reenlisted, the period for which the member reenlists shall be at 
least two years but not more than six years.
    ``(3) In the case of a member who has at least 10 years of service 
in the armed forces as of the day before the first day of the period for 
which reenlisted, the Secretary concerned may accept a reenlistment for 
either--
            ``(A) a specified period of at least two years but not more 
        than six years; or
            ``(B) an unspecified period.

    ``(4) No enlisted member is entitled to be reenlisted for a period 
that would expire before the end of the member's current enlistment.''.
SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE DUTY 
                        UNDER THE DELAYED ENTRY PROGRAM.

    (a) Authority.--Section 513(b) of title 10, United States Code, is 
amended by inserting after the first sentence the following: ``The 
Secretary concerned may extend the 365-day period for any person for up 
to an additional 180 days if the Secretary determines

[[Page 110 STAT. 2515]]

that it is in the best interests of the armed force of which that person 
is a member to do so.''.
    (b) Technical Amendments.--Section 513(b) of such title, as amended 
by subsection (a), is further amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the third sentence as paragraph 
        (2); and
            (3) in paragraph (2), as so designated, by striking out 
        ``the preceding sentence'' and inserting in lieu thereof 
        ``paragraph (1)''.

                    Subtitle C--Activation and Recall

SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE DUTY.

    (a) Revision and Recodification of Authorities Relating to Retired 
Members Ordered to Active Duty.--Chapter 39 of title 10, United States 
Code, is amended by striking out section 688 and inserting in lieu 
thereof the following:
 ``Sec. 688. Retired members: authority to order to active duty; 
                  duties

    ``(a) <<NOTE: Regulations.>>  Authority.--Under regulations 
prescribed by the Secretary of Defense, a member described in subsection 
(b) may be ordered to active duty by the Secretary of the military 
department concerned at any time.

    ``(b) Covered Members.--Except as provided in subsection (d), 
subsection (a) applies to the following members of the armed forces:
            ``(1) A retired member of the Regular Army, Regular Navy, 
        Regular Air Force, or Regular Marine Corps.
            ``(2) A member of the Retired Reserve who was retired under 
        section 1293, 3911, 3914, 6323, 8911, or 8914 of this title.
            ``(3) A member of the Fleet Reserve or Fleet Marine Corps 
        Reserve.

    ``(c) Duties of Member Ordered to Active Duty.--The Secretary 
concerned may, to the extent consistent with other provisions of law, 
assign a member ordered to active duty under this section to such duties 
as the Secretary considers necessary in the interests of national 
defense.
    ``(d) Exclusion of Officers Retired on Selective Early Retirement 
Basis.--The following officers may not be ordered to active duty under 
this section:
            ``(1) An officer who retired under section 638 of this 
        title.
            ``(2) An officer who--
                    ``(A) after having been notified that the officer 
                was to be considered for early retirement under section
638 of this title by a board convened under section 611(b) of this title 
and before being considered by that board, requested retirement under 
section 3911, 6323, or 8911 of this title; and
                    ``(B) was retired pursuant to that request.

    ``(e) Limitation of Period of Recall Service.--A member ordered to 
active duty under subsection (a) may not serve on active duty pursuant 
to orders under that subsection for more than 12

[[Page 110 STAT. 2516]]

months within the 24 months following the first day of the active duty 
to which ordered under that subsection.
    ``(f) Waiver for Periods of War or National Emergency.--Subsections 
(d) and (e) do not apply in time of war or of national emergency 
declared by Congress or the President.
 ``Sec. 689. Retired members: grade in which ordered to active 
                  duty and upon release from active duty

    ``(a) General Rule for Grade in Which Ordered to Active Duty.--
Except as provided in subsections (b) and (c), a retired member ordered 
to active duty under section 688 of this title shall be ordered to 
active duty in the member's retired grade.
    ``(b) Members Retired in O-9 and O-10 Grades.--A retired member 
ordered to active duty under section 688 of this title whose retired 
grade is above the grade of major general or rear admiral shall be 
ordered to active duty in the highest permanent grade held by such 
member while serving on active duty.
    ``(c) Members Who Previously Served in Grade Higher Than Retired 
Grade.--(1) A retired member ordered to active duty under section 688 of 
this title who has previously served on active duty satisfactorily, as 
determined by the Secretary of the military department concerned, in a 
grade higher than that member's retired grade may be ordered to active 
duty in the highest grade in which the member had so served 
satisfactorily, except that such a member may not be so ordered to 
active duty in a grade above major general or rear admiral.
    ``(2) A retired member ordered to active duty in a grade that is 
higher than the member's retired grade pursuant to subsection (a) shall 
be treated for purposes of section 690 of this title as if the member 
was promoted to that higher grade while on that tour of active duty.
    ``(3) If, upon being released from that tour of active duty, such a 
retired member has served on active duty satisfactorily, as determined 
by the Secretary concerned, for not less than a total of 36 months in a 
grade that is a higher grade than the member's retired grade, the member 
is entitled to placement on the retired list in that grade.
    ``(d) Grade Upon Release From Active Duty.--A member ordered to 
active duty under section 688 of this title who, while on active duty, 
is promoted to a grade that is higher than that member's retired grade 
is entitled, upon that member's release from that tour of active duty, 
to placement on the retired list in the highest grade in which the 
member served on active duty satisfactorily, as determined by the 
Secretary of the military department concerned, for not less than six 
months.
 ``Sec. 690. Retired members ordered to active duty: limitation on 
                  number

    ``(a) General and Flag Officers.--Not more than 15 retired general 
officers of the Army, Air Force, or Marine Corps, and not more than 15 
retired flag officers of the Navy, may be on active duty at any one 
time. For the purposes of this subsection a retired officer ordered to 
active duty for a period of 60 days or less is not counted.
    ``(b) Limitation by Service.--(1) Not more than 25 officers of any 
one armed force may be serving on active duty concurrently

[[Page 110 STAT. 2517]]

pursuant to orders to active duty issued under section 688 of this 
title.
    ``(2) In the administration of paragraph (1), the following officers 
shall not be counted:
            ``(A) A chaplain who is assigned to duty as a chaplain for 
        the period of active duty to which ordered.
            ``(B) A health care professional (as characterized by the 
        Secretary concerned) who is assigned to duty as a health care 
        professional for the period of the active duty to which ordered.
            ``(C) Any officer assigned to duty with the American Battle 
        Monuments Commission for the period of active duty to which 
        ordered.

    ``(c) Waiver for Periods of War or National Emergency.--Subsection 
(a) does not apply in time of war or of national emergency declared by 
Congress or the President after November 30, 1980. Subsection (b) does 
not apply in time of war or of national emergency declared by Congress 
or the President.''.
    (b) <<NOTE: 10 USC 688 note.>>  Effective Date.--The amendments made 
by this section shall take effect on September 30, 1997.

    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the item relating to section 688 
and inserting in lieu thereof the following:
``688. Retired members: authority to order to active duty; duties.
``689. Retired members: grade in which ordered to active duty and upon 
          release from active duty.
``690. Retired members ordered to active duty: limitation on number.''.

    (d) Cross Reference Amendment.--Section 6151(a) of title 10, United 
States Code, is amended by striking out ``688'' and inserting in lieu 
thereof ``689''.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

    Section 101(d)(4) of title 10, United States Code, is amended by 
striking out ``a reserve commissioned officer, other than a commissioned 
warrant officer,'' and inserting in lieu thereof the following: ``a 
member of a reserve component''.
SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF 
                        MEMBERS OF NATIONAL GUARD CALLED INTO 
                        FEDERAL SERVICE.

    Section 12408(a) of title 10, United States Code, is amended by 
inserting ``under section 12301(a), 12302, or 12304 of this title'' 
after ``called into Federal service''.

                Subtitle D--Reserve Component Retirement

SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY 
                        TRAINING CREDITABLE TOWARD RESERVE 
                        RETIREMENT.

    (a) Increase in Limit.--Section 12733(3) is amended by inserting 
before the period at the end the following: ``of service before the year 
of service in which the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1997 occurs and not more than 75 days 
in any subsequent year of service''.
    (b) <<NOTE: 10 USC 12732 note.>>  Tracking System for Award of 
Retirement Points.--To better enable the Secretary of Defense and 
Congress to assess

[[Page 110 STAT. 2518]]

the cost and the effect on readiness of the amendment made by subsection 
(a) and of other potential changes to the Reserve retirement system 
under chapter 1223 of title 10, United States Code, the Secretary of 
Defense shall require the Secretary of each military department to 
implement a system to monitor the award of retirement points for 
purposes of that chapter by categories in accordance with the 
recommendation set forth in the August 1988 report of the Sixth 
Quadrennial Review of Military Compensation.

    (c) <<NOTE: 10 USC 12732 note.>> Recommendations to Congress.--The 
Secretary shall submit to Congress, not later than one year after the 
date of the enactment of this Act, the recommendations of the Secretary 
with regard to the adoption of the following Reserve retirement 
initiatives recommended in the August 1988 report of the Sixth 
Quadrennial Review of Military Compensation:
            (1) Elimination of membership points under subparagraph (C) 
        of section 12732(a)(2) of title 10, United States Code, in 
        conjunction with a decrease from 50 to 35 in the number of 
        points required for a satisfactory year under that section.
            (2) Limitation to 60 in any year on the number of points 
        that may be credited under subparagraph (B) of section 
        12732(a)(2) of such title at two points per day.
            (3) Limitation to 360 in any year on the total 
        number of retirement points countable for purposes of section 
        12733 of such title.
SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO 
                        QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER 
                        ADMINISTRATIVE REDUCTION IN ENLISTED 
                        GRADE.

    (a) Army.--(1) Chapter 369 of title 10, United States Code, is 
amended by inserting after section 3962 the following new section:
 ``Sec. 3963. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A Reserve enlisted member of the Army described in subsection 
(b) who is retired under section 3914 of this title shall be retired in 
the highest enlisted grade in which the member served on active duty 
satisfactorily (or, in the case of a member of the National Guard, in 
which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Army.
    ``(b) <<NOTE: Applicability.>> This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of retirement is serving on active duty 
        (or, in the case of a member of the National Guard, on full-time 
        National Guard duty) in a grade lower than the highest enlisted 
        grade held by the member while on active duty (or full-time 
        National Guard duty); and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Army.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
Reserve enlisted members who are retired under section 3914 of this 
title after September 30, 1996.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3962 the 
following new item:


[[Page 110 STAT. 2519]]


``3963. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, United 
States Code, is amended by adding at the end the following new section:
 ``Sec. 6336. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A member of the Naval Reserve or Marine Corps Reserve 
described in subsection (b) who is transferred to the Fleet Reserve or 
the Fleet Marine Corps Reserve under section 6330 of this title shall be 
transferred in the highest enlisted grade in which the member served on 
active duty satisfactorily, as determined by the Secretary of the Navy.
    ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of transfer to the Fleet Reserve or Fleet 
        Marine Corps Reserve is serving on active duty in a grade lower 
        than the highest enlisted grade held by the member while on 
        active duty; and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Navy.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
enlisted members of the Naval Reserve and Marine Corps Reserve who are 
transferred to the Fleet Reserve or the Fleet Marine Corps Reserve after 
September 30, 1996.''.

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

``6336. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (c) Air Force.--(1) Chapter 869 of title 10, United States Code, is 
amended by inserting after section 8962 the following new section:
``Sec. 8963. Highest grade held satisfactorily: Reserve enlisted 
                    members reduced in grade not as a result of 
                    the member's misconduct

    ``(a) A Reserve enlisted member of the Air Force described in 
subsection (b) who is retired under section 8914 of this title shall be 
retired in the highest enlisted grade in which the member served on 
active duty satisfactorily (or, in the case of a member of the National 
Guard, in which the member served on full-time National Guard duty 
satisfactorily), as determined by the Secretary of the Air Force.
    ``(b) <<NOTE: Applicability.>>  This section applies to a Reserve 
enlisted member who--
            ``(1) at the time of retirement is serving on active duty 
        (or, in the case of a member of the National Guard, on full-time 
        National Guard duty) in a grade lower than the highest enlisted 
        grade held by the member while on active duty (or full-time 
        National Guard duty); and
            ``(2) was previously administratively reduced in grade not 
        as a result of the member's own misconduct, as determined by the 
        Secretary of the Air Force.

    ``(c) <<NOTE: Applicability.>>  This section applies with respect to 
Reserve enlisted members who are retired under section 8914 of this 
title after September 30, 1996.''.

[[Page 110 STAT. 2520]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 8962 the 
following new item:

``8963. Highest grade held satisfactorily: Reserve enlisted members 
            reduced in grade not as a result of the member's 
            misconduct.''.

    (d) Computation of Retired and Retainer Pay Based Upon Retired 
Grade.--(1) Section 3991 of such title is amended by adding at the end 
the following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 3963.--In the case of a Reserve enlisted member retired under 
section 3914 of this title whose retired grade is determined under 
section 3963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(c) of this title.''.
    (2) Section 6333 of such title is amended by adding at the end the 
following new subsection:
    ``(c) In the case of a Reserve enlisted member whose grade upon 
transfer to the Fleet Reserve or Fleet Marine Corps Reserve is 
determined under section 6336 of this title and who first became a 
member of a uniformed service before September 8, 1980, the retainer pay 
base of the member (notwithstanding section 1406(a)(1) of this title) is 
the amount of the monthly basic pay of the grade in which the member is 
so transferred (determined based upon the rates of basic pay applicable 
on the date of the member's transfer), and that amount shall be used for 
the purposes of the table in subsection (a) rather than the amount 
computed under section 1406(d) of this title.''.

    (3) Section 8991 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members Covered by 
Section 8963.--In the case of a Reserve enlisted member retired under 
section 8914 of this title whose retired grade is determined under 
section 8963 of this title and who first became a member of a uniformed 
service before September 8, 1980, the retired pay base of the member 
(notwithstanding section 1406(a)(1) of this title) is the amount of the 
monthly basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under section 
1406(e) of this title.''.
SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE 
                        RETIREMENT SANCTUARY.

    Section 12686 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Limitation.--'' before ``Under 
        regulations''; and
            (2) by adding at the end the following:

    ``(b) Waiver.--With respect to a member of a reserve component who 
is to be ordered to active duty (other than for training) under section 
12301 of this title pursuant to an order to active duty that specifies a 
period of less than 180 days and who (but for this subsection) would be 
covered by subsection (a), the Secretary

[[Page 110 STAT. 2521]]

concerned may require, as a condition of such order to active duty, that 
the member waive the applicability of subsection (a) to the member for 
the period of active duty covered by that order. In carrying out this 
subsection, the Secretary concerned may require that a waiver under the 
preceding sentence be executed before the period of active duty 
begins.''.

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

    Paragraph (2) of section 1204 of title 10, United States Code, is 
amended to read as follows:
            ``(2) the disability is the proximate result of, or was 
        incurred in line of duty after the date of the enactment of this 
        Act as a result of--
                    ``(A) performing active duty or inactive-duty 
                training;
                    ``(B) traveling directly to or from the place at 
                which such duty is performed; or
                    ``(C) an injury, illness, or disease incurred or 
                aggravated while remaining overnight, between successive 
                periods of inactive-duty training, at or in the vicinity 
                of the site of the inactive duty training, if the site 
                is outside reasonable commuting distance of the member's 
                residence;''.

               Subtitle E--Other Reserve Component Matters

SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
                        RESERVES.

    Subsection (b) of section 12310 of title 10, United States Code, is 
amended to read as follows:
    ``(b) A Reserve on active duty as described in subsection (a) may be 
provided training consistent with training provided to other members on 
active duty, as the Secretary concerned sees fit.''.

SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE MOBILIZATION 
            INCOME INSURANCE PROGRAM.

    Section 12524 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) <<NOTE: Regulations.>>  Members of Individual Ready Reserve.--
Notwithstanding any other provision of this section, and pursuant to 
regulations issued by the Secretary, a member of the Individual Ready 
Reserve who becomes a member of the Selected Reserve shall not be denied 
eligibility to purchase insurance under this chapter upon becoming a 
member of the Selected Reserve unless the member previously declined to 
enroll in the program of insurance under this chapter while a member of 
the Selected Reserve.''.
SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS 
                        SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                        PROGRAM.

    (a) Credit Authorized.--Section 2126 of title 10, United States 
Code, is amended--
            (1) by striking out ``Service performed'' and inserting in 
        lieu thereof ``(a) Service Not Creditable.--Except as provided 
        in subsection (b), service performed''; and
            (2) by adding at the end the following:

[[Page 110 STAT. 2522]]

    ``(b) Service Creditable for Certain Purposes.--(1) The Secretary 
concerned may authorize service performed by a member of the program in 
pursuit of a course of study under this subchapter to be counted in 
accordance with this subsection if the member--
            ``(A) completes the course of study;
            ``(B) completes the active duty obligation imposed under 
        section 2123(a) of this title; and
            ``(C) possesses a specialty designated by the Secretary 
        concerned as critically needed in wartime.

    ``(2) Service credited under paragraph (1) counts only for the 
following purposes:
            ``(A) Award of retirement points for computation of 
        years of service under section 12732 of this title and for 
        computation of retired pay under section 12733 of this title.
            ``(B) Computation of years of service creditable under 
        section 205 of title 37.

    ``(3) For purposes of paragraph (2)(A), a member may be credited in 
accordance with paragraph (1) with not more than 50 points for each year 
of participation in a course of study that the member satisfactorily 
completes as a member of the program.
    ``(4) Service may not be counted under paragraph (1) for more than 
four years of participation in a course of study as a member of the 
program.
    ``(5) A member is not entitled to any retroactive award of, or 
increase in, pay or allowances under title 37 by reason of an award of 
service credit under paragraph (1).''.
    (b) Award of Retirement Points.--(1) Section 12732(a)(2) of such 
title is amended--
            (A) by inserting after clause (C) the following:
                    ``(D) Points credited for the year under section 
                2126(b) of this title.''; and
            (B) in the matter following clause (D), as inserted by 
        paragraph (1), by striking out ``and (C)'' and inserting in lieu 
        thereof ``(C), and (D)''.

    (2) Section 12733(3) of such title is amended by striking out ``or 
(C)'' and inserting in lieu thereof ``(C), or (D)''.
SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT 
                        PROVISIONS.

    (a) Service Requirement for Retirement in Highest Grade Held.--
Section 1370(d) of title 10, United States Code, is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4);
            (2) in paragraph (2)(A), by striking out ``(A)'';
            (3) by redesignating paragraph (2)(B) as paragraph 
        (3); and
            (4) in paragraph (3), as so redesignated--
                    (A) by designating the first sentence as subpara- 
                graph (A);
                    (B) by designating the second sentence as 
                subparagraph (B);
                    (C) in subparagraph (B), as so redesignated, by 
                striking out ``the preceding sentence'' and inserting in 
                lieu thereof ``subparagraph (A)''; and
                    (D) by adding at the end the following:

    ``(C) If a person covered by subparagraph (A) has completed at least 
six months of satisfactory service in grade, the person

[[Page 110 STAT. 2523]]

was serving in that grade while serving in a position of adjutant 
general required under section 314 of title 32 or while serving in a 
position of assistant adjutant general subordinate to such a position of 
adjutant general, and the person has failed to complete three years of 
service in that grade solely because the person's appointment to such 
position has been terminated or vacated as described in section 324(b) 
of such title, then such person may be credited with satisfactory 
service in that grade, notwithstanding the failure to complete three 
years of service in that grade.
    ``(D) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been recommended for 
promotion in a report of a promotion board but before being promoted to 
the recommended grade, served in a position for which that grade is the 
minimum authorized grade may be credited for purposes of subparagraph 
(A) as having served in that grade for the period for which the person
served in that position while in the next lower grade. The period 
credited may not include any period before the date on which the Senate 
provides advice and consent for the appointment of that person in the 
recommended grade.

    ``(E) To the extent authorized by the Secretary of the military 
department concerned, a person who, after having been extended temporary 
Federal recognition as a reserve officer of the Army National Guard in a 
particular grade under section 308 of title 32 or temporary Federal 
recognition as a reserve officer of the Air National Guard in a 
particular grade under such section, served in a position for which that 
grade is the minimum authorized grade may be credited for purposes of 
subparagraph (A) as having served in that grade for the period for which 
the person served in that position while extended the temporary Federal 
recognition, but only if the person was subsequently extended permanent 
Federal recognition as a reserve officer in that grade and also served 
in that position after being extended the permanent Federal 
recognition.''.
    (b) Exception to Requirement for Retention of Reserve Officers Until 
Completion of Required Service.--Section 12645(b)(2) of such title is 
amended by inserting ``or a reserve active-status list'' after ``active-
duty list''.
    (c) Technical Correction.--Section 14314(b)(2)(B) of such title is 
amended by striking out ``of the Air Force''.
SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT SUPPORT 
                        OF RESERVES PILOT PROGRAM.

    (a) Report on Number of Active Component Advisers.--Not later than 
six months after the date of the enactment of this Act, the Secretary of 
Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report setting forth the Secretary's determination as to the appropriate 
number of active component personnel to be assigned to serve as advisers 
to reserve components under section 414 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note). 
If the Secretary's determination is that such number should be a number 
other than the required minimum number in effect under subsection (c) of 
such section, the Secretary shall include in the report an explanation 
providing the Secretary's justification for the number recommended.

[[Page 110 STAT. 2524]]

    (b) Technical Amendment.--Section 414(a) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note) 
is amended by striking out ``During fiscal years 1992 and 1993, the 
Secretary of the Army shall institute'' and inserting in lieu thereof 
``The Secretary of the Army shall carry out''.
SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT 
                        RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED 
                        IN FOREIGN COUNTRIES.

    (a) Sense of Congress.--Congress is concerned about the lack of 
reemployment rights afforded Reserve component members who reside in 
foreign countries and either work for United States companies that 
maintain offices or operations in foreign countries or work for foreign 
employers. Being outside the jurisdiction of the United States, these 
employers are not subject to the provisions of chapter 43 of title 38, 
United States Code, known as the Uniformed Services Employment and 
Reemployment Rights Act (USERRA). The purpose of that Act is to provide 
statutory employment protections that include reinstatement, seniority, 
status, and rate of pay coverage for Reservists who are ordered to 
active duty for a specified period of time, including involuntary active 
duty in support of an operational contingency. While most Reserve 
members are afforded the protections of that Act (which covers 
reemployment rights in their civilian jobs upon completion of military 
service), approximately 2,000 members of the Selected Reserve reside 
outside the United States and its territories and, not being guaranteed 
the job protection envisioned by the USERRA, are potentially subject to 
reemployment problems after release from active duty. This situation 
poses a continuing personnel management challenge for the reserve 
components.
    (b) Recognition of Problem.--Congress, while recognizing that 
foreign governments and companies located abroad, not being within the 
jurisdiction of the United States, cannot be required to comply with the 
provisions of the Uniformed Services Employment and Reemployment Rights 
Act, also recognizes that there is a need to provide assistance to 
Reservists in the situation described in subsection (a), both in the 
near term and the long term.
    (c) Report Requirement.--Not later than April 1, 1997, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report that sets forth recommended actions to help alleviate 
reemployment problems for Reservists who are employed outside the United 
States and its territories by United States companies that maintain 
offices or operations in foreign countries or by foreign employers. The 
report shall include recommendations on the assistance and support that 
may be required by other organizations of the Government, including the 
Defense Attache Offices, the Department of Labor, and the Department of 
State. The report shall be prepared in consultation with the Secretary 
of State and the Secretary of Labor.
SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME INSURANCE 
                        PROGRAM.

    Section 12527(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``of the Selected 
        Reserve'' after ``a member''; and

[[Page 110 STAT. 2525]]

            (2) by striking out paragraph (2) and inserting in lieu 
        thereof the following:

    ``(2) <<NOTE: Regulations.>>  The Secretary of Defense, in 
consultation with the Secretary of Transportation, shall prescribe 
regulations which specify the procedures for payment of premiums by 
members of the Individual Ready Reserve and other members who do not 
receive pay on a monthly basis.''.

                 Subtitle F--Officer Education Programs

SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS PROGRAM.

    (a) Enrollment Priority To Be Consistent With Purpose of Program.--
(1) Section 2103 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) An educational institution at which a unit of the program has 
been established shall give priority for enrollment in the program to 
students who are eligible for advanced training under section 2104 of 
this title.''.
    (2) Section 2109 of such title is amended by adding at the end the 
following new subsection:
    ``(c)(1) A person who is not qualified for, and (as determined by 
the Secretary concerned) will not be able to become qualified for, 
advanced training by reason of one or more of the requirements 
prescribed in paragraphs (1) through (3) of section 2104(b) of this 
title shall not be permitted to participate in--
            ``(A) field training or a practice cruise under section 
        2106(b)(6) of this title; or
            ``(B) practical military training under subsection (a).

    ``(2) The Secretary of the military department concerned may waive 
the limitation in paragraph (1) under procedures prescribed by the 
Secretary. Such procedures shall ensure uniform application of 
limitations and restrictions without regard to the reason for 
disqualification for advanced training.''.
    (b) Wear of the Military Uniform.--Section 772(h) of such title is 
amended by inserting before the period at the end the following: ``if 
the wear of such uniform is specifically authorized under regulations 
prescribed by the Secretary of the military department concerned''.
SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET COMMAND 
                        OR TERMINATION OF SENIOR ROTC UNITS 
                        PENDING REPORT ON ROTC.

    (a) <<NOTE: Reports.>>  Prohibition.--(1) The Secretary of the Army 
may not reorganize or restructure the Reserve Officers Training Corps 
Cadet Command, and may not terminate any Senior Reserve Officer Training 
Corps unit identified in the document referred to in paragraph (2), 
until 180 days after the date on which the Secretary submits to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives the report described in 
subsection (b).

    (2) The document referred to in paragraph (1) is the Department of 
Defense document dated May 20, 1996, entitled ``Information for Members 
of Congress concerning Senior Reserve Officer Training Corps (ROTC) Unit 
Closures''.

[[Page 110 STAT. 2526]]

    (b) Report Contents.--The report referred to in subsection (a) is a 
report by the Secretary of the Army in which the Secretary--
            (1) describes the selection process used to identify the 
        Reserve Officer Training Corps units of the Army to be 
        terminated;
            (2) lists the criteria used by the Army to select Reserve 
        Officer Training Corps units for termination;
            (3) sets forth the specific ranking of each unit of the 
        Reserve Officer Training Corps of the Army to be terminated as 
        against all other such units;
            (4) sets forth the authorized and actual cadre staffing of 
        each such unit for each fiscal year of the 10-fiscal year period 
        ending with fiscal year 1996;
            (5) sets forth the production goals and performance 
        evaluations of each such unit for each fiscal year of the 10-
        fiscal year period ending with fiscal year 1996;
            (6) describes how cadets currently enrolled in the units 
        referred to in paragraph (5) will be accommodated after the 
        closure of such units;
            (7) describes the incentives to enhance the Reserve Officer 
        Training Corps program that are provided by each of the colleges 
        on the closure list;
            (8) includes the projected officer accession plan by source 
        of commission for the active-duty Army, the Army Reserve, and 
        the Army National Guard; and
            (9) describes whether the closure of any ROTC unit will 
        adversely affect the recruitment of minority officer candidates.
SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM TO 
                        INCLUDE GRADUATE STUDENTS.

    (a) Test Program.--Section 2107(c) of title 10, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following:

    ``(2) The Secretary of Defense shall authorize the Secretaries of 
the military departments to carry out a test program to determine the 
desirability of enabling graduate students to participate in the 
financial assistance program under this section. As part of such test 
program, the Secretary of a military department may provide financial 
assistance, as described in paragraph (1), to a student enrolled in an 
advanced education program beyond the baccalaureate degree level if the 
student also is a cadet or midshipman in an advanced training program. 
Not more than 15 percent of the total number of scholarships awarded 
under this section in any year may be awarded under the test program. No 
scholarship may be awarded under the test program after September 30, 
1999.''.
    (b) Authority To Enroll in Advanced Training Program.--Paragraph (3) 
of section 2101 of title 10, United States Code, is amended by inserting 
``students enrolled in an advanced education program beyond the 
baccalaureate degree level or to'' after `instruction offered in the 
Senior Reserve Officers' Training Corps to''.
    (c) <<NOTE: 10 USC 2107 note.>>  Report to Congress.--Not later than 
December 31, 1998, the Secretary of Defense shall submit to Congress a 
report on the experience to that date under the test program authorized 
under the amendment made by subsection (a)(2). The report shall include 
the Secretary's assessment of the effect of the test program

[[Page 110 STAT. 2527]]

on the Senior ROTC program and the Secretary's recommendation as to 
whether the authority under the test program should be made permanent.
SEC. 554. <<NOTE: 10 USC 2111 note.>>  DEMONSTRATION PROJECT FOR 
                        INSTRUCTION AND SUPPORT OF ARMY ROTC UNITS 
                        BY MEMBERS OF THE ARMY RESERVE AND 
                        NATIONAL GUARD.

    (a) Demonstration Project Required.--The Secretary of the Army shall 
carry out a demonstration project in order to assess the feasibility and 
advisability of providing instruction and similar support to units of 
the Senior Reserve Officers' Training Corps of the Army through members 
of the Army Reserve (including members of the Individual Ready Reserve) 
and members of the Army National Guard.

    (b) Project Requirements.--(1) The Secretary shall carry out the 
demonstration project at at least one institution of higher education.
    (2) In order to enhance the value of the project, the Secretary may 
take actions to ensure that members of the Army Reserve and the Army 
National Guard provide instruction and support under the project in a 
variety of innovative ways.
    (c) Inapplicability of Limitation on Reserves in Support of ROTC.--
The assignment of a member of the Army Reserve or the Army National 
Guard to provide instruction or support under the demonstration project 
shall not be treated as an assignment of the member to duty with a unit 
of a Reserve Officer Training Corps program for purposes of section 
12321 of title 10, United States Code.
    (d) Reports to Congress.--Not later than February 1 in each of 1998 
and 1999, the Secretary shall submit to Congress a report assessing the 
activities under the demonstration project during the preceding year. 
The report submitted in 1999 shall include the Secretary's 
recommendation as to the advisability of continuing or expanding the 
authority for the project.
    (e) Termination.--The authority of the Secretary to carry out the 
demonstration project shall expire three years after the date of the 
enactment of this Act.
SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A CADET OR 
                        MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS AND THE SERVICE ACADEMIES.

    (a) Senior Reserve Officers' Training Corps.--Sections 2107(a) and 
2107a(a) of title 10, United States Code, are amended--
            (1) by striking out ``25 years of age'' and inserting in 
        lieu thereof ``27 years of age''; and
            (2) by striking out ``29 years of age'' and inserting in 
        lieu thereof ``30 years of age''.

    (b) United States Military Academy.--Section 4346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (c) United States Naval Academy.--Section 6958(a)(1) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.
    (d) United States Air Force Academy.--Section 9346(a) of such title 
is amended by striking out ``twenty-second birthday'' and inserting in 
lieu thereof ``twenty-third birthday''.

[[Page 110 STAT. 2528]]

SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO 
                        INCLUDE CERTAIN RESERVE OFFICERS' TRAINING 
                        CORPS (ROTC) PARTICIPANTS.

    (a) Active Duty Service.--Section 3011(c) of title 38, United States 
Code, is amended--
            (1) by striking out ``or upon completion of a program of 
        educational assistance under section 2107 of title 10'' in 
        paragraph (2); and
            (2) by adding at the end the following:

    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the individual 
enters on active duty--
            ``(A) before October 1, 1996; or
            ``(B) after September 30, 1996, and while participating in 
        such program received more than $2,000 for each year of such 
        participation.''.

    (b) Selected Reserve.--Section 3012(d) of title 38, United States 
Code, is amended--
            (1) by striking out ``or upon completion of a program of 
        educational assistance under section 2107 of title 10'' in 
        paragraph (2); and
            (2) by adding at the end the following:

    ``(3) An individual who after December 31, 1976, receives a 
commission as an officer in the Armed Forces upon completion of a 
program of educational assistance under section 2107 of title 10 is not 
eligible for educational assistance under this section if the individual 
enters on active duty--
            ``(A) before October 1, 1996; or
            ``(B) after September 30, 1996, and while participating in 
        such program received more than $2,000 for each year of such 
        participation.''.
SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY 
                        IMPLICATIONS OF PERMITTING UP TO FIVE 
                        PERCENT OF SERVICE ACADEMY GRADUATES TO BE 
                        ASSIGNED DIRECTLY TO RESERVE DUTY UPON 
                        GRADUATION.

    (a) Report Required.--The Comptroller General of the United States 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
providing an analysis of the cost implications, and the policy 
implications, of permitting up to five percent of each graduating class 
of each of the service academies to be placed, upon graduation and 
commissioning, in an active status in the appropriate reserve component 
(without a minimum period of obligated active duty service), with a
corresponding increase in the number of ROTC graduates each year who are 
permitted to serve on active duty upon commissioning.

    (b) Information on Current Academy Graduates in Reserve 
Components.--The Comptroller General shall include in the report 
information (shown in the aggregate and separately for each of the Armed 
Forces and for graduates of each service academy) on--
            (1) the number of academy graduates who at the time of the 
        report are serving in an active status in a reserve component; 
        and

[[Page 110 STAT. 2529]]

            (2) within the number under paragraph (1), the number for 
        each reserve component and, of those, the number within each 
        reserve component who are on active duty under section 12301(d) 
        of title 10, United States Code, for the purpose of organizing, 
        administering, recruiting, instructing, or training the reserve 
        components.

    (c) Submission of Report.--The report shall be submitted not later 
than six months after the date of the enactment of this Act.
    (d) Service Academies.--For purposes of this section, the term 
``service academies'' means--
            (1) the United States Military Academy;
            (2) the United States Naval Academy; and
            (3) the United States Air Force Academy.

                   Subtitle G--Decorations and Awards

SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN AFRICAN 
                        AMERICAN SOLDIERS WHO SERVED DURING WORLD 
                        WAR II.

    (a) Inapplicability of Time Limitations.--Notwithstanding the time 
limitations in section 3744(b) of title 10, United States Code, or any 
other time limitation, the President may award the Medal of Honor to the 
persons specified in subsection (b), each of whom has been found by the 
Secretary of the Army to have distinguished himself conspicuously by 
gallantry and intrepidity at the risk of his life above and beyond the 
call of duty while serving in the United States Army during World War 
II.
    (b) Persons Eligible To Receive the Medal of Honor.--The persons 
referred to in subsection (a) are the following:
            (1) <<NOTE: Vernon J. Baker.>>  Vernon J. Baker, who served 
        as a first lieutenant in the 370th Infantry Regiment, 92nd 
        Infantry Division.
            (2) <<NOTE: Edward A. Carter.>>  Edward A. Carter, who 
        served as a staff sergeant in the 56th Armored Infantry 
        Battalion, Twelfth Armored 
        Division.
            (3) <<NOTE: John R. Fox.>>  John R. Fox, who served as a 
        first lieutenant in the 366th Infantry Regiment, 92nd Infantry 
        Division.
            (4) <<NOTE: Willy F. James, Jr.>>  Willy F. James, Jr., who 
        served as a private first class in the 413th Infantry Regiment, 
        104th Infantry Division.
            (5) <<NOTE: Ruben Rivers.>>  Ruben Rivers, who served as a 
        staff sergeant in the 761st Tank Battalion.
            (6) <<NOTE: Charles L. Thomas.>>  Charles L. Thomas, who 
        served as a first lieutenant in the 614th Tank Destroyer 
        Battalion.
            (7) <<NOTE: George Watson.>>  George Watson, who served as a 
        private in the 29th Quartermaster Regiment.

    (c) Posthumous Award.--The Medal of Honor may be awarded under this 
section posthumously, as provided in section 3752 of title 10, United 
States Code.
    (d) Prior Award.--The Medal of Honor may be awarded under this 
section for service for which a Distinguished-Service Cross, or other 
award, has been awarded.
SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                        DECORATIONS TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established by law or 
policy for the time within which a recommendation

[[Page 110 STAT. 2530]]

for the award of a military decoration or award must be submitted shall 
not apply in the case of awards of decorations as described in 
subsection (b), the award of each such decoration having been determined 
by the Secretary of the Navy to be warranted in accordance with section 
1130 of title 10, United States Code.
    (b) Distinguished Flying Cross.--Subsection (a) applies to awards of 
the Distinguished Flying Cross for service during World War II as 
follows:
            (1) First award.--First award, for completion of at least 20 
        qualifying combat missions, to the following members and former 
        members of the Armed Forces:
                    Vernard V. Aiken of Wilmington, Vermont.
                    Ira V. Babcock of Dothan, Georgia.
                    George S. Barlow of Grafton, Virginia.
                    Earl A. Bratton of Bodega Bay, California.
                    Travis C. Cork of Leesburg, Florida.
                    Herman C. Edwards of Johns Island, South Carolina.
                    Norman J. Ehr of Kiel, Wisconsin.
                    James M. Fitzgerald of Anchorage, Alaska.
                    Raymond C. Gordon of Sherborn, Massachusetts.
                    Paul L. Hitchcock of Raleigh, North Carolina.
                    Harold H. Hottle of Hillsboro, Ohio.
                    Samuel M. Keith of Anderson, South Carolina.
                    Stanley J. Ksiadz of Cheektowaga, New York.
                    Otis Lancaster of Wyoming, Michigan.
                    Robert W. Lorette of Wilton, New Hampshire.
                    John B. McCabe of Biglerville, Pennsylvania.
                    James P. Merriman of Midland, Texas.
                    The late Michael L. Michalak, formerly of Akron, 
                New York.
                    The late Edward J. Naparkowsky, formerly of 
                Hartford, Connecticut.
                    Pete G. Nicora of Warren, Ohio.
                    Stanley J. Orlowski of Jackson, Michigan.
                    Raymond A. Peischl of Allentown, Pennsylvania.
                    A. Jerome Pfeiffer of Racine, Wisconsin.
                    Duane L. Rhodes of Earp, California.
                    Frank V. Roach of Bloomfield, New Jersey.
                    Arnold V. Rosekrans of Horseheads, New York.
                    Joseph E. Seaman, Jr. of Bordentown, New Jersey.
                    Richard F. Shumaker of Hilliard, Ohio.
                    Luther E. Thomas of Panama City, Florida.
                    Merton S. Ward of South Hamilton, Massachusetts.
                    Simon L. Webb of Magnolia, Mississippi.
                    Jerry W. Webster of Leander, Texas.
            (2) Second award.--Second award, for completion of at least 
        40 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Arthur C. Adair of Grants Pass, Oregon.
                    Robert B. Carnes of West Yarmouth, Massachusetts.
                    Daniel K. Connors of Hampton, New Hampshire.
                    Glen E. Danielson of Whittier, California.
                    Ralph J. Deceuster of Dover, Ohio.
                    Albert P. Emsley of Bothell, Washington.
                    Urbain J. Fournier of Houma, Louisiana.
                    Prescott C. Jernegan of Hemet, California.
                    Stephen K. Johnson of Englewood, Florida.

[[Page 110 STAT. 2531]]

                    Warren E. Johnson of Vista, California.
                    Elbert J. Kimble of San Francisco, California.
                    George W. Knauff of Monument, Colorado.
                    John W. Lincoln of Rockland, Massachusetts.
                    Alan D. Marker of Sonoma, California.
                    Joseph J. Oliver of White Haven, Pennsylvania.
                    Shefield Phelps of Seattle, Washington.
                    John B. Tagliapiri of St. Helena, California.
                    Dewilles A.H.W. Schwartz of Watertown, South Dakota.
                    Ray B. Stiltner of Centralia, Washington.
            (3) Third award.--Third award, for completion of at least 60 
        qualifying combat missions, to the following members and former 
        members of the Armed Forces:
                    Glenn Bowers of Dillsburg, Pennsylvania.
                    Arthur C. Casey of Irving, California.
                    Robert J. Larsen of Gulf Breeze, Florida.
                    David Mendoza of McAllen, Texas.
                    William A. Nickerson of Portland, Oregon.
                    Maurice F. Smith of Sequim, Washington.
            (4) Fourth award.--Fourth award, for completion of at least 
        80 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    Robert Bair of Ontario, California.
                    Arvid L. Kretz of Santa Rosa, California.
                    George E. McClane of Cocoa Beach, Florida.
                    Orville R. Swick of Issaquah, Washington.
            (5) Fifth award.--Fifth award, for completion of at least 
        100 qualifying combat missions, to the following members and 
        former members of the Armed Forces:
                    William A. Baldwin of San Clemente, California.
                    George Bobb of Blackwood, New Jersey.
                    John R. Conrad of Hot Springs, Arkansas.
                    Herbert R. Hetrick of Roaring Springs, Pennsylvania.
                    William L. Wells of Cordele, Georgia.
            (6) Sixth award.--Sixth award, for completion of at least 
        120 qualifying combat missions, to Richard L. Murray of Dallas, 
        Texas.
SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN 
                        RIBBONS.

    (a) Replacement Ribbons.--The Secretary of the Army, pursuant to 
section 3751 of title 10, United States Code, may replace any World War 
II decoration known as the American Theater Campaign Ribbon that was 
awarded to a person listed in the order described in subsection (b).
     (b) Ribbons Properly Awarded.--Any person listed in the document 
titled ``General Order Number 1'', issued by the Third Auxiliary 
Surgical Group, APO 647, United States Army, dated February 1, 1943, 
shall be considered to have been properly awarded the American Theater 
Campaign Ribbon for service during World War II.

[[Page 110 STAT. 2532]]

                        Subtitle H--Other Matters

SEC. 571. <<NOTE: 10 USC 113 note.>>  HATE CRIMES IN THE MILITARY.

    (a) Human Relations Training.--(1) The Secretary of Defense shall 
ensure that the Secretary of each military department conducts ongoing 
programs for human relations training for all members of the Armed 
Forces under the jurisdiction of the Secretary. Matters to be covered by 
such training include race relations, equal opportunity, opposition to 
gender discrimination, and sensitivity to ``hate group'' activity. Such 
training shall be provided during basic training (or other initial 
military training) and on a regular basis thereafter.
    (2) The Secretary of Defense shall also ensure that unit commanders 
are aware of their responsibilities in ensuring that impermissible 
activity based upon discriminatory motives does not occur in units under 
their command.
    (b) Information To Be Provided to Prospective Recruits.--The 
Secretary of Defense shall ensure that each individual preparing to 
enter an officer accession program or to execute an original enlistment 
agreement is provided information concerning the meaning of the oath of 
office or oath of enlistment for service in the Armed Forces in terms of 
the equal protection and civil liberties guarantees of the Constitution, 
and each such individual shall be informed that if supporting those 
guarantees is not possible personally for that individual, then that 
individual should decline to enter the Armed Forces.
    (c) Annual Survey.--(1) Section 451 of title 10, United States Code, 
is amended to read as follows:
``Sec. 451. Race relations, gender discrimination, and hate group 
                  activity: annual survey and report

    ``(a) Annual Survey.--The Secretary of Defense shall carry out an 
annual survey to measure the state of racial, ethnic, and gender issues 
and discrimination among members of the Armed Forces serving on active 
duty and the extent (if any) of activity among such members that may be 
seen as so-called `hate group' activity. The survey shall solicit 
information on the
race relations and gender relations climate in the Armed Forces, 
including--
            ``(1) indicators of positive and negative trends of 
        relations among all racial and ethnic groups and between the 
        sexes;
            ``(2) the effectiveness of Department of Defense policies 
        designed to improve race, ethnic, and gender relations; and
            ``(3) the effectiveness of current processes for complaints 
        on and investigations into racial, ethnic, and gender 
        discrimination.

    ``(b) Implementing Entity.--The Secretary shall carry out each 
annual survey through the entity in the Department of Defense known as 
the Armed Forces Survey on Race/Ethnic Issues.
    ``(c) Reports to Congress.--Upon completion of each annual survey 
under subsection (a), the Secretary shall submit to Congress a report 
containing the results of the survey.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 22 of such title is amended to read as follows:

``451. Race relations, gender discrimination, and hate group activity: 
          annual survey and report.''.


[[Page 110 STAT. 2533]]



SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS LEAVE FOR 
            EDUCATIONAL OR EMERGENCY PURPOSES.

    (a) Eligibility for Retirement.--Section 1201 of title 10, United 
States Code, is amended--
            (1) by striking out the matter preceding paragraph (1) and 
        inserting in lieu thereof the following:

    ``(a) Retirement.--Upon a determination by the Secretary concerned 
that a member described in subsection (c) is unfit to perform the duties 
of the member's office, grade, rank, or rating because of physical 
disability incurred while entitled to basic pay or while absent as 
described in subsection (c)(3), the Secretary may retire the member, 
with retired pay computed under section 1401 of this title, if the 
Secretary also makes the determinations with respect to the member and 
that disability specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary that--
''; and
            (2) by adding at the end the following:

    ``(c) Eligible Members.--This section and sections 1202 and 1203 of 
this title apply to the following members:
            ``(1) A member of a regular component of the armed forces 
        entitled to basic pay.
            ``(2) Any other member of the armed forces entitled to basic 
        pay who has been called or ordered to active duty (other than 
        for training under section 10148(a) of this title) for a period 
        of more than 30 days.
            ``(3) Any other member of the armed forces who is on active 
        duty but is not entitled to basic pay by reason of section 
        502(b) of title 37 due to authorized absence (A) to participate 
        in an educational program, or (B) for an emergency purpose, as 
        determined by the Secretary concerned.''.

    (b) Eligibility for Placement on Temporary Disability Retirement 
List.--Section 1202 of title 10, United States Code, is amended by 
striking out ``a member of a regular component'' and all that follows 
through ``more than 30 days,'' and inserting in lieu thereof ``a member 
described in section 1201(c) of this title''.
    (c) Eligibility for Separation.--Section 1203 of title 10, United 
States Code, is amended by striking out the matter preceding paragraph 
(1) and inserting in lieu thereof the following:
    ``(a) Separation.--Upon a determination by the Secretary concerned 
that a member described in section 1201(c) of this title is unfit to 
perform the duties of the member's office, grade, rank, or rating 
because of physical disability incurred while entitled to basic pay or 
while absent as described in section 1201(c)(3) of this title, the 
member may be separated from the member's armed force, with severance 
pay computed under section 1212 of this title, if the Secretary also 
makes the determinations with respect to the member and that disability 
specified in subsection (b).
    ``(b) Required Determinations of Disability.--Determinations 
referred to in subsection (a) are determinations by the Secretary that--
''.
    (d) <<NOTE: Applicability. 10 USC 1201 note.>>  Effective Date.--The 
amendments made by this section shall take effect on the date of the 
enactment of this Act 
and shall apply with respect to physical disabilities incurred on or 
after such date.

[[Page 110 STAT. 2534]]

SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE ADVOCATE 
                        TO ACT AS A MILITARY NOTARY PUBLIC WHEN 
                        NOT IN A DUTY STATUS.

    Section 1044a(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``on active duty or 
        performing inactive-duty training'' and inserting in lieu 
        thereof ``, including reserve judge advocates when not in a duty 
        status'';
            (2) in paragraph (3), by striking out ``adjutants on active 
        duty or performing inactive-duty training'' and inserting in 
        lieu thereof ``adjutants, including reserve members when not in 
        a duty status''; and
            (3) in paragraph (4), by striking out ``persons on active 
        duty or performing inactive-duty training'' and inserting in 
        lieu thereof ``members of the armed forces, including reserve 
        members when not in a duty status,''.
SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE NATIONAL 
                        GUARD WHEN NOT IN FEDERAL SERVICE.

    (a) Establishment.--The Secretary of Defense shall establish a panel 
to review the various authorities for court-martial and nonjudicial 
punishment jurisdiction for the National Guard not in Federal service 
and the use of those authorities.
    (b) Membership.--The Secretary shall appoint the members of the 
panel so as to ensure representation of the following:
            (1) The State Adjutants General of the National Guard.
            (2) The State Attorneys General.
            (3) The Joint Service Committee on Military Justice of the 
        Department of Defense.

    (c) Duties.--Matters reviewed by the panel shall include the 
following:
            (1) The extent of the use of court-martial and nonjudicial 
        punishment authority for the National Guard not in Federal 
        service.
            (2) The extent to which the authority used is--
                    (A) authority under title 32, United States Code; or
                    (B) authority under State law.

    (d) Report.--(1) Not later than February 1, 1997, the panel shall 
submit a report on the panel's findings and conclusions to the Secretary 
of Defense.
    (2) The report shall include recommended legislation for amending 
title 32, United States Code--
            (A) to increase the uniformity in State use of courts-
        martial and nonjudicial punishment for the National Guard when 
        not in Federal service; and
            (B) to achieve increased comparability between the court-
        martial and nonjudicial punishment procedures that are 
        applicable to the National Guard not in Federal service and the 
        court-martial and nonjudicial punishment procedures that are 
        applicable under the Uniform Code of Military Justice to the 
        National Guard in Federal service.

    (e) Submission of Report to Congress.--Not later than March 1, 1997, 
the Secretary of Defense shall submit to Congress the report of the 
panel under subsection (d) together with the views of the Secretary 
regarding the report and the matters covered in the report.

[[Page 110 STAT. 2535]]

SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT PROGRAM TO 
                        INCLUDE FIREFIGHTERS.

    Section 1152(g) of title 10, United States Code, is amended--
            (1) by striking out ``(g) Conditional Expansion of Placement 
        to Include Firefighters.--(1) Subject to paragraph (2), the'' 
        and inserting in lieu thereof ``(g) Authority To Expand 
        Placement To Include Firefighters.--The''; and
            (2) in paragraph (2)--
                    (A) by striking out the first sentence; and
                    (B) in the second sentence, by inserting 
                ``authorized by this subsection'' after ``expansion''.
SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND 
                        CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT AS 
                        TEACHERS OR TEACHERS' AIDES.

    (a) Program for Separated Members.--(1) Section 1151 of title 10, 
United States Code, is amended--
            (A) in subsection (f)(2), by striking out ``five school 
        years'' in subparagraphs (A) and (B) and inserting in lieu 
        thereof ``two school years''; and
            (B) in subsection (h)(3)(A), by striking out ``five 
        consecutive school years'' and inserting in lieu thereof ``two 
        consecutive school years''.

    (2) Subsection (g)(2) of such section is amended--
            (A) by striking out the comma after ``section 1174a of this 
        title'' and inserting in lieu thereof ``or''; and
            (B) by striking out ``, or retires pursuant to the authority 
        provided in section 4403 of the National Defense Authorization 
        Act for fiscal year 1993 (Public Law 102-484; 10 U.S.C. 1293 
        note)''.

    (3) Subsection (h)(3)(B) of such section is amended--
            (A) in clause (i), by striking out ``$25,000'' and inserting 
        in lieu thereof ``$17,000'';
            (B) in clause (ii)--
                    (i) by striking out ``40 percent'' and inserting in 
                lieu thereof ``25 percent''; and
                    (ii) by striking out ``$10,000'' and inserting in 
                lieu thereof ``$8,000''; and
            (C) by striking out clauses (iii), (iv), and (v).

    (b) Separated Civilian Employees of the Department of Defense.--
Section 1598(d)(2) of such title is amended by striking out ``five 
school years'' in subparagraphs (A) and (B) and inserting in lieu 
thereof ``two school years''.
    (c) Displaced Department of Defense Contractor Employees.--Section 
2410j(f)(2) of such title is amended by striking out ``five school 
years'' in subparagraphs (A) and (B) and inserting in lieu thereof ``two 
school years''.
    (d) <<NOTE: 10 USC 1151 note.>>  Savings Provision.--The amendments 
made by this section do not affect obligations under agreements entered 
into in accordance with section 1151, 1598, or 2410j of title 10, United 
States Code, before the date of the enactment of this Act.

[[Page 110 STAT. 2536]]

SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN 
                        A PHYSICAL DISABILITY IS FOUND AT ANY 
                        PHYSICAL EXAMINATION.

    Section 1372 of title 10, United States Code, is amended by striking 
out ``his physical examination for promotion'' in paragraphs (3) and (4) 
and inserting in lieu thereof ``a physical examination''.

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

    (a) Repeal of Applicability of Authorities to Department of Defense 
Civilian Employees and Contractor Employees.--(1) Section 1501 of title 
10, United States Code, is amended--
            (A) in subsection (c)--
                    (i) by striking out ``applies in the case of'' and 
                all that follows through ``(1) Any member'' and 
                inserting in lieu thereof ``applies in the case of any 
                member''; and
                    (ii) by striking out paragraph (2); and
            (B) by striking out subsection (f).

    (2) Section 1503(c) of such title is amended--
            (A) in paragraph (1), by striking out ``one individual 
        described in paragraph (2)'' and inserting in lieu thereof ``one 
        military officer'';
            (B) by striking out paragraph (2); and
            (C) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively.

    (3) Section 1504(d) of such title is amended--
            (A) by striking out the text of paragraph (1) and inserting 
        in lieu thereof the following new text: ``A board appointed 
        under this section shall be composed of at least three members 
        who are officers having the grade of major or lieutenant 
        commander or above.''; and
            (B) in paragraph (4), by striking out ``section 1503(c)(4)'' 
        and inserting in lieu thereof ``section 1503(c)(3)''.

    (4) Paragraph (1) of section 1513 of such title is amended to read 
as follows:
            ``(1) The term `missing person' means a member of the armed 
        forces on active duty who is in a missing status.''.

    (b) Report on Preliminary Assessment of Status.--(1) Section 1502 of 
such title is amended--
            (A) in subsection (a)(2)--
                    (i) by striking out ``48 hours'' and inserting in 
                lieu thereof ``10 days''; and
                    (ii) by striking out ``theater component commander 
                with jurisdiction over the missing person'' and 
                inserting in lieu thereof ``Secretary concerned'';
            (B) by striking out subsection (b);
            (C) by redesignating subsection (c) as subsection (b); and
            (D) in subsection (b), as so redesignated, by striking out 
        the second sentence.

    (2) Section 1503(a) of such title is amended by striking out 
``section 1502(b)'' and inserting in lieu thereof ``section 1502(a)''.
    (3) Section 1513 of such title is amended by striking out paragraph 
(8).
    (c) Frequency of Subsequent Reviews.--Subsection (b) of section 1505 
of such title is amended to read as follows:
    ``(b) Frequency of Subsequent Reviews.--The Secretary concerned 
shall conduct inquiries into the whereabouts and status of a person 
under subsection (a) upon receipt of information that

[[Page 110 STAT. 2537]]

may result in a change of status of the person. The Secretary concerned 
shall appoint a board to conduct such inquiries.''.
    (d) Repeal of Statutory Penalties for Wrongful Withholding of 
Information.--Section 1506 of such title is amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).

    (e) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of such title is amended by striking out paragraphs (3) 
and (4).
    (f) Scope of Preenactment Review.--(1) Section 1509 of such title is 
amended--
            (A) by striking out subsection (c); and
            (B) by redesignating subsection (d) as subsection (c).

    (2)(A) The heading of such section is amended by striking out ``, 
special interest''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 76 of such title is amended by striking out ``, 
special interest''.

       Subtitle I--Commissioned Corps of the Public Health Service

SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON 
                        CREDITING CADET OR MIDSHIPMEN SERVICE AT 
                        THE SERVICE ACADEMIES.

    (a) Prohibition on Counting Enlisted Service Performed While at 
Service Academy.--Subsection (a) of section 971 of title 10, United 
States Code, is amended by inserting before the period at the end the 
following: ``or an officer in the Commissioned Corps of the Public 
Health Service''.
    (b) Prohibition on Counting Service as a Cadet or Midshipman.--
Subsection (b) of such section is amended to read as follows:
    ``(b) Prohibition on Counting Service as a Cadet or Midshipman.--In 
computing length of service for any purpose, service as a cadet or 
midshipman may not be credited to any of the following officers:
            ``(1) An officer of the Navy or Marine Corps.
            ``(2) A commissioned officer of the Army or Air Force.
            ``(3) An officer of the Coast Guard.
            ``(4) An officer in the commissioned corps of the Public 
        Health Service.''.

    (c) Technical Amendments.--(1) Such section is further amended by 
adding at the end the following new subsection:
    ``(c) Service as a Cadet or Midshipman Defined.--In this section, 
the term `service as a cadet or midshipman' means--
            ``(1) service as a cadet at the United States Military 
        Academy, United States Air Force Academy, or United States Coast 
        Guard Academy; or
            ``(2) service as a midshipman at the United States Naval 
        Academy.''.

    (2) Subsection (a) of such section is further amended--
            (A) by inserting ``Prohibition on Counting Enlisted Service 
        Performed While at Service Academy or in Naval Reserve.--'' 
        after ``(a)''; and

[[Page 110 STAT. 2538]]

            (B) by striking out ``while also serving'' and all that 
        follows through ``Naval Academy or'' and inserting in lieu 
        thereof ``while also performing service as a cadet or midshipman 
        or serving as a midshipman''.

    (3) The heading of such section, and the item relating to such 
section in the table of sections at the beginning of chapter 49 of such 
title, are amended by striking out the seventh word.
SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC HEALTH 
                        SERVICE OFFICERS ASSIGNED TO THE 
                        DEPARTMENT OF DEFENSE.

    Section 206 of the Public Health Service Act (42 U.S.C. 207) is 
amended by adding at the end the following new subsection:
    ``(f) In computing the maximum number of commissioned officers of 
the Public Health Service authorized by law or administrative 
determination to serve on active duty, there may be excluded from such 
computation officers who are assigned to duty in the Department of 
Defense.''.
SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC HEALTH 
                        SERVICE OFFICERS.

    (a) Legal Assistance Available.--Subsection (a) of section 1044 of 
title 10, United States Code, is amended by striking out paragraph (3) 
and inserting in lieu thereof the following:
            ``(3) Officers of the commissioned corps of the Public 
        Health Service who are on active duty or entitled to retired or 
        equivalent pay.
            ``(4) Dependents of members and former members described in 
        paragraphs (1), (2), and (3).''.

    (b) Limitation on Assistance.--Subsection (c) of such section is 
amended--
            (1) by striking out ``armed forces'' and inserting in lieu 
        thereof ``uniformed services described in subsection (a)''; and
            (2) by inserting ``such'' after ``dependent of''.

    (c) Clarifying Amendments.--Subsection (a) of such section is 
further amended by striking out ``under his jurisdiction'' in paragraphs 
(1) and (2).
    (d) Stylistic Amendments.--Subsection (a) of such section is further 
amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``to--'' and inserting in lieu thereof ``to the following 
        persons:'';
            (2) by capitalizing the first letter of the first word of 
        paragraphs (1) and (2);
            (3) by striking out the semicolon at the end of paragraph 
        (1) and inserting in lieu thereof a period; and
            (4) by striking out ``; and'' at the end of paragraph (2) 
        and inserting in lieu thereof a period.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Adjustment of rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Availability of basic allowance for quarters for certain 
                    members without dependents who serve on sea duty.

[[Page 110 STAT. 2539]]

Sec. 605. Uniform applicability of discretion to deny an election not to 
                    occupy Government quarters.
Sec. 606. Establishment of minimum monthly amount of variable housing 
                    allowance for high housing cost areas.
Sec. 607. Family separation allowance for members separated by military 
                    orders from spouses who are members.
Sec. 608. Waiver of time limitations for claim for pay and allowances.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay 
                    authorities for Reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay 
                    authorities for nurse officer candidates, registered 
                    nurses, and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other 
                    bonuses and special pays.
Sec. 614. Special pay for certain Public Health Service officers.
Sec. 615. Special incentives to recruit and retain dental officers.
Sec. 616. Foreign language proficiency pay for Public Health Service and 
                    National Oceanic and Atmospheric Administration 
                    officers.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at 
                    Government expense.
Sec. 622. Dislocation allowance at a rate equal to two and one-half 
                    months basic allowance for quarters.
Sec. 623. Allowance for travel performed in connection with leave 
                    between consecutive overseas tours.
Sec. 624. Funding for transportation of household effects of Public 
                    Health Service officers.

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

Sec. 631. Effective date for military retiree cost-of-living adjustment 
                    for fiscal year 1998.
Sec. 632. Clarification of initial computation of retiree COLAs after 
                    retirement.
Sec. 633. Suspension of payment of retired pay of members who are absent 
                    from the United States to avoid prosecution.
Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.
Sec. 635. Increases in Survivor Benefit Plan contributions to be 
                    effective concurrently with payment of retired pay 
                    cost-of-living increases.
Sec. 636. Amendments to the Uniformed Services Former Spouses' 
                    Protection Act.
Sec. 637. Prevention of circumvention of court order by waiver of 
                    retired pay to enhance civil service retirement 
                    annuity.
Sec. 638. Administration of benefits for so-called minimum income 
                    widows.

                        Subtitle E--Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer 
                    pay.
Sec. 652. Reimbursement for adoption expenses incurred in adoptions 
                    through 
                    private placements.
Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from 
                    certain separation pay.
Sec. 654. Technical correction clarifying limitation on furnishing 
                    clothing or allowances for enlisted National Guard 
                    technicians.
Sec. 655. Technical correction to prior authority for payment of back 
                    pay to certain persons.
Sec. 656. Compensation for persons awarded prisoner of war medal who did 
                    not previously receive compensation as a prisoner of 
                    war.
Sec. 657. Payments to certain persons captured and interned by North 
                    Vietnam.

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>>  MILITARY PAY RAISE FOR FISCAL 
            YEAR 1997.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in elements of 
compensation of members of the uniformed services to become effective 
during fiscal year 1997 shall not be made.
    (b) <<NOTE: Effective date.>>  Increase in Basic Pay and BAS.--
Effective on January 1, 1997, the rates of basic pay and basic allowance 
for subsistence of members of the uniformed services are increased by 
3.0 percent.

[[Page 110 STAT. 2540]]

    (c) <<NOTE: Effective date.>>  Increase in BAQ.--Effective on 
January 1, 1997, the rates of basic allowance for quarters of members of 
the uniformed services are increased by 4.6 percent.

SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

    Section 203(c) of title 37, United States Code, is amended--
            (1) by striking out paragraph (2); and
            (2) in paragraph (1), by striking out ``(1)''.
SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE 
                        HOSPITALIZED.

    (a) Pay During Hospitalization.--Section 210 of title 37, United 
States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) A noncommissioned officer of an armed force who is 
hospitalized and who, during or immediately before such hospitalization, 
completed service as the senior enlisted member of that armed force, 
shall continue to be entitled, for not more than 180 days while so 
hospitalized, to the rate of basic pay authorized for the senior 
enlisted member of that armed force.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 210. Pay of senior enlisted members during terminal leave and 
                        while hospitalized''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 3 of title 37, United States Code, is amended 
to read as follows:

``210. Pay of senior enlisted members during terminal leave and while 
           hospitalized.''.

SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR CERTAIN 
            MEMBERS WITHOUT DEPENDENTS WHO SERVE ON SEA DUTY.

    (a) Entitlement of Single Members Above Grade E-5.--Section 
403(c)(2) of title 37, United States Code, is amended--
            (1) by striking out ``A member'' in the first sentence and 
        inserting in lieu thereof ``(A) Except as provided in 
        subparagraphs (B) and (C), a member''; and
            (2) by striking out the second sentence.

    (b) Entitlement of Certain Single Members in Grade 
E-5.--Such section is further amended by adding at the end the following 
new subparagraph:
    ``(B) <<NOTE: Regulations.>>  Under regulations prescribed by the 
Secretary concerned, the Secretary may authorize the payment of a basic 
allowance for quarters to a member of a uniformed service without 
dependents who is serving in pay grade E-5 and is assigned to sea duty. 
In prescribing regulations under this subparagraph, the Secretary 
concerned shall consider the availability of quarters for members 
serving in pay grade E-5.''.

    (c) Entitlement When Both Spouses in Grades Below Grade E-6 Are 
Assigned to Sea Duty.--Such section is further amended by inserting 
after subparagraph (B), as added by subsection (b), the following new 
subparagraph:
    ``(C) Notwithstanding section 421 of this title, two members of the 
uniformed services in a pay grade below pay grade 


[[Page 110 STAT. 2541]]

E-6 who are married to each other, have no other dependents, and are 
simultaneously assigned to sea duty are jointly entitled to one basic 
allowance for quarters during the period of such simultaneous sea duty. 
The amount of the allowance shall be based on the without dependents 
rate for the pay grade of the senior member of the couple. However, this 
subparagraph shall not apply to a couple if one or both of the members 
are entitled to a basic allowance for quarters under subparagraph 
(B).''.
    (d) Conforming Amendment Regarding Variable Housing Allowance.--
Section 403a(b)(2)(C) of title 37, United States Code, is amended by 
striking out ``E-6'' and inserting in lieu thereof ``E-4''.
    (e) <<NOTE: 37 USC 403 note.>>  Effective Date.--The amendments made 
by this section shall take effect on July 1, 1997.
SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN ELECTION 
                        NOT TO OCCUPY GOVERNMENT QUARTERS.

    Section 403(b)(3) of title 37, United States Code, is amended by 
striking out ``A member'' and inserting in lieu thereof ``Subject to the 
provisions of subsection (j), a member''.
SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE 
                        HOUSING ALLOWANCE FOR HIGH HOUSING COST 
                        AREAS.

    (a) Minimum Monthly Amount of Allowance.--Subsection (c) of section 
403a of title 37, United States Code, is amended by striking out 
paragraph (1) and inserting in lieu thereof the following new paragraph:
    ``(1) The monthly amount of a variable housing allowance under this 
section for a member of a uniformed service with respect to an area is 
equal to the greater of the following amounts:
            ``(A) An amount equal to the difference between--
                    ``(i) the median monthly cost of housing in that 
                area for members of the uniformed services serving in 
                the same pay grade and with the same dependency status 
                as that member; and
                    ``(ii) 80 percent of the median monthly cost of 
                housing in the United States for members of the 
                uniformed services serving in the same pay grade and 
                with the same dependency status as that member.
            ``(B) An amount equal to the difference between--
                    ``(i) the adequate housing allowance floor 
                determined by the Secretary of Defense for all members 
                of the uniformed services in that area entitled to a 
                variable housing allowance under this section; and
                    ``(ii) the monthly basic allowance for quarters for 
                members of the uniformed services serving in the same 
                pay grade and with the same dependency status as that 
                member.''.

    (b) Adequate Housing Allowance Floor.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of 
Defense shall establish an adequate housing allowance floor for members 
of the uniformed services in an area as a selected percentage, not to 
exceed 85 percent, of the cost of adequate housing in that area based on 
an index of housing costs selected by the Secretary of Defense from 
among the following:

[[Page 110 STAT. 2542]]

            ``(i) The fair market rentals established annually by the 
        Secretary of Housing and Urban Development under section 8(c)(1) 
        of the United States Housing Act of 1937 (42 U.S.C. 
        1437f(c)(1)).
            ``(ii) An index developed in the private sector that the 
        Secretary of Defense determines is comparable to the fair market 
        rentals referred to in clause (i) and is appropriate for use to 
        determine the adequate housing allowance floor.

    ``(B) The Secretary of Defense shall carry out this paragraph in 
consultation with the Secretary of Transportation, the Secretary of 
Commerce, and the Secretary of Health and Human Services.''.
    (c) Effect on Total Amount Available for Allowance.--Subsection 
(d)(3) of such section is amended in the second sentence by striking out 
``the second sentence of subsection (c)(3)'' and inserting in lieu 
thereof ``paragraph (1)(B) of subsection (c) and the second sentence of 
paragraph (3) of that subsection''.
    (d) Conforming Amendments.--Subsection (c) of such section is 
further amended--
            (1) in paragraph (3), by striking out ``this subsection'' in 
        the first sentence and inserting in lieu thereof ``paragraph 
        (1)(A) or the minimum amount of a variable housing allowance 
        under paragraph (1)(B)''; and
            (2) in paragraph (5), by inserting ``or minimum amount of a 
        variable housing allowance'' after ``costs of housing''.

    (e) <<NOTE: Federal Register, publication. 37 USC 403a note.>>  
Effective Date.--The amendments made by this section shall take effect 
on January 1, 1997, except that the Secretary of Defense may delay 
implementation of the requirements imposed by the amendments to such 
later date as the Secretary considers appropriate upon publication of 
notice to that effect in the Federal Register.
SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY 
                        MILITARY ORDERS FROM SPOUSES WHO ARE 
                        MEMBERS.

    (a) Additional Basis for Allowance.--Paragraph (1) of section 427(b) 
of title 37, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (B);
            (2) by striking out the period at the end of subparagraph 
        (C) and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) the member is married to a member of a uniformed 
        service, the member has no dependent other than the spouse, the 
        two members are separated by reason of the execution of military 
        orders, and the two members were residing together immediately 
        before being separated by reason of execution of military 
        orders.''.

    (b) Conforming Amendment.--Such section is further 
amended by adding at the end the following new paragraph:
    ``(5) Section 421 of this title does not apply to bar an entitlement 
to an allowance under paragraph (1)(D). However, not more than one 
monthly allowance may be paid with respect to a married couple under 
paragraph (1)(D) for any month.''.
SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND 
                        ALLOWANCES.

    Section 3702 of title 31, United States Code, is amended by adding 
at the end the following new subsection:

[[Page 110 STAT. 2543]]

    ``(e)(1) Upon the request of the Secretary concerned (as defined in 
section 101 of title 37, United States Code), the Comptroller General 
may waive the time limitations set forth in subsection (b) or (c) in the 
case of a claim for pay or allowances provided under title 37 and, 
subject to paragraph (2), settle the claim.
    ``(2) Payment of a claim settled under paragraph (1) shall be 
subject to the availability of appropriations for payment of that 
particular claim.
    ``(3) This subsection does not apply to a claim in excess of 
$25,000.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
                        AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Critically Short Wartime Health Specialists.--
Section 302g(f) of title 37, United States Code, is amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (g) Prior Service Enlistment Bonus.--Section 308i(i) of 
title 37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
                        AUTHORITIES FOR NURSE OFFICER CANDIDATES, 
                        REGISTERED NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 1997'' and inserting in lieu thereof ``September 30, 1998''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.

[[Page 110 STAT. 2544]]

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
                        OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking out ``September 30, 
1997'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of title 37, United States Code, are each amended by striking 
out ``September 30, 1997'' and inserting in lieu thereof ``September 30, 
1998''.
    (d) Special Pay for Nuclear Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking out ``September 30, 1997'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 
37, United States Code, is amended by striking out ``October 1, 1997'' 
and inserting in lieu thereof ``October 1, 1998''.
    (g) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United 
States Code, is amended by striking out ``October 1, 1997'' and 
inserting in lieu thereof ``October 1, 1998''.
SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE 
                        OFFICERS.

    (a) Optometrists.--Section 302a(b) of title 37, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``an armed force'' in the matter 
                preceding subparagraph (A) and inserting in lieu thereof 
                ``a uniformed service''; and
                    (B) by striking out ``of the military department'' 
                in subparagraph (C); and
            (2) in paragraph (4), by striking out ``of the military 
        department''.

    (b) Nonphysician Health Care Providers.--Section 302c(d) of title 
37, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``Secretary of Defense'' and inserting in lieu thereof 
        ``Secretary concerned''; and
            (2) in paragraph (1)--
                    (A) by striking out ``or'' the third place it 
                appears; and
                    (B) by inserting before the period at the end the 
                following: ``, or an officer in the Regular or Reserve 
                Corps of the Public Health Service''.

[[Page 110 STAT. 2545]]

SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL 
                        OFFICERS.

    (a) Variable, Additional, and Board Certified Special Pays for 
Active Duty Dental Officers.--Section 302b(a) of title 37, United States 
Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking out ``$1,200'' 
                and inserting in lieu thereof ``$3,000'';
                    (B) in subparagraph (B), by striking out ``$2,000'' 
                and inserting in lieu thereof ``$7,000''; and
                    (C) in subparagraph (C), by striking out ``$4,000'' 
                and inserting in lieu thereof ``$7,000'';
            (2) in paragraph (4), by striking out subparagraphs (A), 
        (B), and (C) and inserting in lieu thereof the following:
            ``(A) $4,000 per year, if the officer has less than three 
        years of creditable service.
            ``(B) $6,000 per year, if the officer has at least three but 
        less than 14 years of creditable service.
            ``(C) $8,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(D) $10,000 per year, if the officer has at least 18 or 
        more years of creditable service.''; and
            (3) in paragraph (5), by striking out subparagraphs (A), 
        (B), and (C) and inserting in lieu thereof the following:
            ``(A) $2,500 per year, if the officer has less than 10 years 
        of creditable service.
            ``(B) $3,500 per year, if the officer has at least 10 but 
        less than 12 years of creditable service.
            ``(C) $4,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(D) $5,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(E) $6,000 per year, if the officer has 18 or more years 
        of creditable service.''.

    (b) Reserve Dental Officers Special Pay.--Section 302b of title 37, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(h) Reserve Dental Officers Special Pay.--(1) A reserve dental 
officer described in paragraph (2) is entitled to special pay at the 
rate of $350 a month for each month of active duty, including active 
duty in the form of annual training, active duty for training, and 
active duty for special work.
    ``(2) A reserve dental officer referred to in paragraph (1) is a 
reserve officer who--
            ``(A) is an officer of the Dental Corps of the Army or the 
        Navy or an officer of the Air Force designated as a dental 
        officer; and
            ``(B) is on active duty under a call or order to active duty 
        for a period of less than one year.''.

    (c) Accession Bonus for Dental School Graduates Who Enter the Armed 
Forces.--(1) Chapter 5 of title 37, United States Code, is amended by 
inserting after section 302g the following new section:

``Sec. 302h. Special pay: accession bonus for dental officers

    ``(a) Accession Bonus Authorized.--(1) A person who is a graduate of 
an accredited dental school and who, during the period

[[Page 110 STAT. 2546]]

beginning on the date of the enactment of this section, and ending on 
September 30, 2002, executes a written agreement described in subsection 
(c) to accept a commission as an officer of the armed forces and remain 
on active duty for a period of not less than four years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid an 
accession bonus in an amount determined by the Secretary concerned.
    ``(2) The amount of an accession bonus under paragraph (1) may not 
exceed $30,000.
    ``(b) Limitation on Eligibility for Bonus.--A person may not be paid 
a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as an officer, received financial assistance from 
        the Department of Defense to pursue a course of study in 
        dentistry; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain certified and licensed as a 
        dentist.

    ``(c) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the armed service concerned, 
the person executing the agreement will be assigned to duty, for the 
period of obligated service covered by the agreement, as an officer of 
the Dental Corps of the Army or the Navy or an officer of the Air Force 
designated as a dental officer.
    ``(d) Repayment.--(1) An officer who receives a payment under 
subsection (a) and who fails to become and remain certified or licensed 
as a dentist during the period for which the payment is made shall 
refund to the United States an amount equal to the full amount of such 
payment.
    ``(2) An officer who voluntarily terminates service on active duty 
before the end of the period agreed to be served under subsection (a) 
shall refund to the United States an amount that bears the same ratio to 
the amount paid to the officer as the unserved part of such period bears 
to the total period agreed to be served.
    ``(3) An obligation to reimburse the United States imposed under 
paragraph (1) or (2) is for all purposes a debt owed to the United 
States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under this section 
does not discharge the person signing such agreement from a debt arising 
under such agreement or this subsection. This paragraph applies to any 
case commenced under title 11 after the date of the enactment of this 
section.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 302g the 
following new item:

``302h. Special pay: accession bonus for dental officers.''.

    (3) Section 303a of title 37, United States Code, is amended by 
striking out ``302g'' each place it appears and inserting in lieu 
thereof ``302h''.
    (d) Report on Additional Activities To Increase Recruitment of 
Dentists.--Not later than April 1, 1997, the Secretary of Defense shall 
submit to Congress a report describing the feasibility of increasing the 
number of persons enrolled in the Armed Forces Health Professions 
Scholarship and Financial Assistance program who are pursuing a course 
of study in dentistry in anticipation of service as an officer of the 
Dental Corps of the Army

[[Page 110 STAT. 2547]]

or the Navy or an officer of the Air Force designated as a dental 
officer.
    (e) Stylistic Amendments.--Section 302b of title 37, United States 
Code, is amended--
            (1) in subsection (a), by inserting ``Variable, Additional, 
        and Board Certification Special Pay.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Active-Duty 
        Agreement.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Regulations.--'' after 
        ``(c)'';
            (4) in subsection (d), by inserting ``Frequency of 
        Payments.--'' after ``(d)'';
            (5) in subsection (e), by inserting ``Refund for Period of 
        Unserved Obligated Service.--'' after ``(e)'';
            (6) in subsection (f), by inserting ``Effect of Discharge in 
        Bankruptcy.--'' after ``(f)''; and
            (7) in subsection (g), by inserting ``Determination of 
        Creditable Service.--'' after ``(g)''.
SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH 
                        SERVICE AND NATIONAL OCEANIC AND 
                        ATMOSPHERIC ADMINISTRATION OFFICERS.

    (a) Eligibility.--Subsection (a) of section 316 of title 37, United 
States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``armed forces'' and inserting in lieu thereof ``uniformed 
        services'';
            (2) in paragraph (2)--
                    (A) by striking out ``Secretary of Defense'' and 
                inserting in lieu thereof ``Secretary concerned''; and
                    (B) by inserting ``or public health'' after 
                ``national defense''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking out 
                ``military'' and inserting in lieu thereof ``uniformed 
                services'';
                    (B) in subparagraph (C), by striking out 
                ``military''; and
                    (C) in subparagraph (D)--
                          (i) by striking out ``Department of Defense'' 
                      and inserting in lieu thereof ``uniformed 
                      service''; and
                          (ii) by striking out ``Secretary of Defense'' 
                      and inserting in lieu thereof ``Secretary 
                      concerned''.

    (b) Administration.--Subsection (d) of such section is 
amended--
            (1) by striking out ``his jurisdiction and'' and inserting 
        in lieu thereof ``the jurisdiction of the Secretary,''; and
            (2) by inserting before the period at the end the following: 
        ``, by the Secretary of Health and Human Services for the 
        Commissioned Corps of the Public Health Service, and by the 
        Secretary of Commerce for the National Oceanic and Atmospheric 
        Administration''.

    (c) <<NOTE: Applicability. 37 USC 316 note.>>  Effective Date.--The 
amendments made by this section shall take effect on October 1, 1996, 
and apply with respect to months beginning on or after such date.

[[Page 110 STAT. 2548]]

            Subtitle C--Travel and Transportation Allowances

SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR VEHICLE AT 
                        GOVERNMENT EXPENSE.

    (a) Allowance Authorized.--Section 406(b)(1)(B) of title 37, United 
States Code, is amended by adding at the end the following: ``If clause 
(i)(I) applies to the transportation by the member of a motor vehicle 
from the old duty station, the monetary allowance under this 
subparagraph shall also cover return travel to the old duty station by 
the member or other person transporting the vehicle. In the case of 
transportation described in clause (ii), the monetary allowance shall 
also cover travel from the new duty station to the port of debarkation 
to pick up the vehicle.''.
    (b) <<NOTE: 37 USC 406 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1997.
SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND ONE-
                        HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

    (a) Allowance Authorized.--Section 407(a) of title 37, United States 
Code, is amended in the matter preceding paragraph (1) by striking out 
``two months'' and inserting in lieu thereof ``two and one-half 
months''.
    (b) <<NOTE: 37 USC 407 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 1997.
SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION WITH LEAVE 
                        BETWEEN CONSECUTIVE OVERSEAS TOURS.

    (a) Authority for Additional Deferral of Travel.--Section 411b(a)(2) 
of title 37, United States Code, is amended by adding at the end the 
following: ``If the member is unable to undertake the travel before the 
end of such one-year period as a result of duty in connection with a 
contingency operation, the member may defer the travel for one 
additional year beginning on the date the duty of the member in 
connection with the contingency operation ends.''.
    (b) <<NOTE: 37 USC 411b note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect as of November 1, 1995.
SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF 
                        PUBLIC HEALTH SERVICE OFFICERS.

    Section 406(j) of title 37, United States Code, is amended--
            (1) in the first sentence of paragraph (1)--
                    (A) by striking out ``Appropriations available'' and 
                all that follows through ``to a member'' and inserting 
                in lieu thereof ``The Secretary concerned may pay a 
                monetary allowance to a member of the armed forces or a 
                member of the Commissioned Corps of the Public Health 
                Service''; and
                    (B) by striking out ``of the military department''; 
                and
            (2) by adding at the end the following new paragraph:

    ``(3) Appropriations available to the Department of Defense for 
providing transportation of household effects of members of the armed 
forces under subsection (b) shall be available to pay the monetary 
allowance authorized under paragraph (1) to such members. Appropriations 
available to the Department of Health

[[Page 110 STAT. 2549]]

and Human Services for providing transportation of household effects of 
members of the Commissioned Corps of the Public Health Service under 
subsection (b) shall be available to pay the monetary allowance 
authorized under paragraph (1) to such members.''.

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

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING 
                        ADJUSTMENT FOR FISCAL YEAR 1998.

    (a) Repeal of Adjustment of Effective Date for Fiscal Year 1998.--
Section 1401a(b)(2)(B) of title 10, United States Code, is amended--
            (1) by striking out ``(B) Special rules'' and all that 
        follows through ``In the case of'' in clause
(i) and inserting in lieu thereof ``(B) Special rule for fiscal year 
1996.--In the case of''; and
            (2) by striking out clause (ii).

    (b) Repeal of Contingent Alternative Date for Fiscal Year 1998.--
Section 631 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; <<NOTE: 10 USC 1401a note.>>  110 Stat. 364) 
is amended by striking out subsection (b).
SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE COLAS 
                        AFTER RETIREMENT.

    (a) In General.--Section 1401a of title 10, United States Code, is 
amended by striking out subsections (c) and (d) and inserting in lieu 
thereof the following new subsections:
    ``(c) First COLA Adjustment for Members With Retired Pay Computed 
Using Final Basic Pay.--
            ``(1) First adjustment with intervening increase in basic 
        pay.--Notwithstanding subsection (b), if a person described in 
        paragraph (3) becomes entitled to retired pay based on rates of 
        monthly basic pay that became effective after the last day of 
        the calendar quarter of the base index, the retired pay of the 
        member or former member shall be increased on the effective date 
        of the next adjustment of retired pay under subsection (b) only 
        by the percent (adjusted to the nearest one-tenth of 1 percent) 
        by which--
                    ``(A) the price index for the base quarter of that 
                year, exceeds
                    ``(B) the price index for the calendar quarter 
                immediately before the calendar quarter in which the 
                rates of monthly basic pay on which the retired pay is 
                based became effective.
            ``(2) First adjustment with no intervening increase in basic 
        pay.--If a person described in paragraph (3) becomes entitled to 
        retired pay on or after the effective date of an adjustment in 
        retired pay under subsection (b) but before the effective date 
        of the next increase in the rates of monthly basic pay, the 
        retired pay of the member or former member shall be increased, 
        effective on the date the member becomes entitled to that pay, 
        by the percent (adjusted to the nearest one-tenth of 1 percent) 
        by which--
                    ``(A) the base index, exceeds

[[Page 110 STAT. 2550]]

                    ``(B) the price index for the calendar quarter 
                immediately before the calendar quarter in which the 
                rates of monthly basic pay on which the retired pay is 
                based became effective.
            ``(3) Members covered.--Paragraphs (1) and (2) apply 
        to a member or former member of an armed force who first became 
        a member of a uniformed service before August 1, 1986, and whose 
        retired pay base is determined under section 1406 of this title.

    ``(d) First COLA Adjustment for Members With Retired Pay Computed 
Using High-Three.--Notwithstanding subsection (b), the retired pay of a 
member or former member of an armed force who first became a member of a 
uniformed service before August 1, 1986, and whose retired pay base is 
determined under section 1407 of this title shall be increased on the 
effective date of the first adjustment of retired pay under subsection 
(b) after the member or former member becomes entitled to retired pay by 
the percent (adjusted to the nearest one-tenth of 1 percent) equal to 
the difference between the percent by which--
            ``(1) the price index for the base quarter of that year, 
        exceeds
            ``(2) the price index for the calendar quarter immediately 
        before the calendar quarter during which the member became 
        entitled to retired pay.''.

    (b) <<NOTE: Applicability. 10 USC 1401a note.>>  Effective Date.--
The amendment made by subsection (a) shall apply only to adjustments of 
retired and retainer pay effective after the date of the enactment of 
this Act.
SEC. <<NOTE: 5 USC 8313 note.>>  633. SUSPENSION OF PAYMENT OF 
                        RETIRED PAY OF MEMBERS WHO ARE ABSENT FROM 
                        THE UNITED STATES TO AVOID PROSECUTION.

    (a) Development of Procedures for Suspension.--The Secretary of 
Defense shall develop uniform procedures under which the Secretary of a 
military department may suspend the payment of the retired pay of a 
member or former member of the Armed Forces during periods in which the 
member willfully remains outside the United States to avoid criminal 
prosecution or civil liability. The procedures shall address the types 
of criminal offenses and civil proceedings for which the procedures may 
be used, including the offenses specified in section 8312 of title 5, 
United States Code, and the manner by which a member, upon the return of 
the member to the United States, may obtain retired pay withheld during 
the member's absence.
    (b) Report to Congress.--The Secretary of Defense shall submit to 
Congress a report describing the procedures developed under subsection 
(a). The report shall include recommendations regarding changes to 
existing provisions of law (including section 8313 of title 5, United 
States Code) that the Secretary determines are necessary to fully 
implement the procedures.
    (c) Retired Pay Defined.--For purposes of this section, the term 
``retired pay'' means retired pay, retirement pay, retainer pay, or 
equivalent pay, payable under a statute to a member or former member of 
a uniformed service.
    (d) Effective Date.--The uniform procedures required by subsection 
(a) shall be developed not later than 30 days after the date of the 
enactment of this Act.

[[Page 110 STAT. 2551]]

SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT PLAN 
                        STATUTE.

    Subchapter II of chapter 73 of title 10, United States Code, is 
amended to read as follows:

                 ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

``Sec.
``1447. Definitions.
``1448. Application of Plan.
``1449. Mental incompetency of member.
``1450. Payment of annuity: beneficiaries.
``1451. Amount of annuity.
``1452. Reduction in retired pay.
``1453. Recovery of amounts erroneously paid.
``1454. Correction of administrative errors.
``1455. Regulations.

``Sec. 1447. Definitions

    ``In this subchapter:
            ``(1) Plan.--The term `Plan' means the Survivor Benefit Plan 
        established by this subchapter.
            ``(2) Standard annuity.--The term `standard annuity' means 
        an annuity provided by virtue of eligibility under section 
        1448(a)(1)(A) of this title.
            ``(3) Reserve-component annuity.--The term `reserve-
        component annuity' means an annuity provided by virtue of 
        eligibility under section 1448(a)(1)(B) of this title.
            ``(4) Retired pay.--The term `retired pay' includes retainer 
        pay paid under section 6330 of this title.
            ``(5) Reserve-component retired pay.--The term `reserve-
        component retired pay' means retired pay under chapter 1223 of 
        this title (or under chapter 67 of this title as in effect 
        before the effective date of the Reserve Officer Personnel 
        Management Act).
            ``(6) Base amount.--The term `base amount' means the 
        following:
                    ``(A) Full amount under standard annuity.--In the 
                case of a person who dies after becoming entitled to 
                retired pay, such term means the amount of monthly 
                retired pay (determined without regard to any reduction 
                under section 1409(b)(2) of this title) to which the 
                person--
                          ``(i) was entitled when he became eligible for 
                      that pay; or
                          ``(ii) later became entitled by being advanced 
                      on the retired list, performing active duty, or 
                      being transferred from the temporary disability 
                      retired list to the permanent disability retired 
                      list.
                    ``(B) Full amount under reserve-component annuity.--
                In the case of a person who would have become eligible 
                for reserve-component retired pay but for the fact that 
                he died before becoming 60 years of age, such term means 
                the amount of monthly retired pay for which the person 
                would have been eligible--
                          ``(i) if he had been 60 years of age on the 
                      date of his death, for purposes of an annuity to 
                      become effective on the day after his death in 
                      accordance with a designation made under section 
                      1448(e) of this title; or

[[Page 110 STAT. 2552]]

                          ``(ii) upon becoming 60 years of age (if he 
                      had lived to that age), for purposes of an annuity 
                      to become effective on the 60th anniversary of his 
                      birth in accordance with a designation made under 
                      section 1448(e) of this title.
                    ``(C) Reduced amount.--Such term means any amount 
                less than the amount otherwise applicable under 
                subparagraph (A) or (B) with respect to an annuity 
                provided under the Plan but which is not less than $300 
                and which is designated by the person (with the 
                concurrence of the person's spouse, if required under 
                section 1448(a)(3) of this title) providing the annuity 
                on or before--
                          ``(i) the first day for which he becomes 
                      eligible for retired pay, in the case of a person 
                      providing a standard annuity, or
                          ``(ii) the end of the 90-day period beginning 
                      on the date on which he receives the notification 
                      required by section 12731(d) of this title that he 
                      has completed the years of service required for 
                      eligibility for reserve-component retired pay, in 
                      the case of a person providing a reserve-component 
                      annuity.
            ``(7) Widow.--The term `widow' means the surviving wife of a 
        person who, if not married to the person at the time he became 
        eligible for retired pay--
                    ``(A) was married to him for at least one year 
                immediately before his death; or
                    ``(B) is the mother of issue by that marriage.
            ``(8) Widower.--The term `widower' means the surviving 
        husband of a person who, if not married to the person at the 
        time she became eligible for retired pay--
                    ``(A) was married to her for at least one year 
                immediately before her death; or
                    ``(B) is the father of issue by that marriage.
            ``(9) Surviving spouse.--The term `surviving spouse' means a 
        widow or widower.
            ``(10) Former spouse.--The term `former spouse' means the 
        surviving former husband or wife of a person who is eligible to 
        participate in the Plan.
            ``(11) Dependent child.--
                    ``(A) In general.--The term `dependent child' means 
                a person who--
                          ``(i) is unmarried;
                          ``(ii) is (I) under 18 years of age, (II) at 
                      least 18, but under 22, years of age and pursuing 
                      a full-time course of study or training in a high 
                      school, trade school, technical or vocational 
                      institute, junior college, college, university, or 
                      comparable recognized educational institution, or 
                      (III) incapable of self support because of a 
                      mental or physical incapacity existing before the 
                      person's eighteenth birthday or incurred on or 
                      after that birthday, but before the person's 
                      twenty-second birthday, while pursuing such a 
                      full-time course of study or training; and
                          ``(iii) is the child of a person to whom the 
                      Plan applies, including (I) an adopted child, and 
                      (II) a stepchild, foster child, or recognized 
                      natural child who lived with that person in a 
                      regular parent-child relationship.

[[Page 110 STAT. 2553]]

                    ``(B) Special rules for college students.--For the 
                purpose of subparagraph (A), a child whose twenty-second 
                birthday occurs before July 1 or after August 31 of a 
                calendar year, and while regularly pursuing such a 
                course of study or training, is considered to have 
                become 22 years of age on the first day of July after 
                that birthday. A child who is a student is considered 
                not to have ceased to be a student during an interim 
                between school years if the interim is not more than 150 
                days and if the child shows to the satisfaction of the 
                Secretary of Defense that the child has a bona fide 
                intention of continuing to pursue a course of study or 
                training in the same or a different school during the 
                school semester (or other period into which the school 
                year is divided) immediately after the interim.
                    ``(C) Foster children.--A foster child, to qualify 
                under this paragraph as the dependent child of a person 
                to whom the Plan applies, must, at the time of the death 
                of that person, also reside with, and receive over one-
                half of his support from, that person, and not be cared 
                for under a social agency contract. The temporary 
                absence of a foster child from the residence of that 
                person, while a student as described in this paragraph, 
                shall not be considered to affect the residence of such 
                a foster child.
            ``(12) Court.--The term `court' has the meaning given that 
        term by section 1408(a)(1) of this title.
            ``(13) Court order.--
                    ``(A) In general.--The term `court order' means a 
                court's final decree of divorce, dissolution, or 
                annulment or a court ordered, ratified, or approved 
                property settlement incident to such a decree (including 
                a final decree modifying the terms of a previously 
                issued decree of divorce, dissolution, annulment, or 
                legal separation, or of a court ordered, ratified, or 
                approved property settlement agreement incident to such 
                previously issued decree).
                    ``(B) Final decree.--The term `final decree' means a 
                decree from which no appeal may be taken or from which 
                no appeal has been taken within the time allowed for the 
                taking of such appeals under the laws applicable to such 
                appeals, or a decree from which timely appeal has been 
                taken and such appeal has been finally decided under the 
                laws applicable to such appeals.
                    ``(C) Regular on its face.--The term `regular on its 
                face', when used in connection with a court order, means 
                a court order that meets the conditions prescribed in 
                section 1408(b)(2) of this title.

``Sec. 1448. Application of plan

    ``(a) General Rules for Participation in the Plan.--
            ``(1) Name of plan; eligible participants.--The program 
        established by this subchapter shall be known as the Survivor 
        Benefit Plan. The following persons are eligible to participate 
        in the Plan:
                    ``(A) Persons entitled to retired pay.
                    ``(B) Persons who would be eligible for reserve-
                component retired pay but for the fact that they are 
                under 60 years of age.

[[Page 110 STAT. 2554]]

            ``(2) Participants in the plan.--The Plan applies to the 
        following persons, who shall be participants in the Plan:
                    ``(A) Standard annuity participants.--A person who 
                is eligible to participate in the Plan under paragraph 
                (1)(A) and who is married or has a dependent child when 
                he becomes entitled to retired pay, unless he elects 
                (with his spouse's concurrence, if required under 
                paragraph (3)) not to participate in the Plan before the 
                first day for which he is eligible for that pay.
                    ``(B) Reserve-component annuity participants.--A 
                person who (i) is eligible to participate in the Plan 
                under paragraph (1)(B), (ii) is married or has a 
                dependent child when he is notified under section 
                12731(d) of this title that he has completed the years 
                of service required for eligibility for reserve-
                component retired pay, and (iii) elects to participate 
                in the Plan (and makes a designation under subsection 
                (e)) before the end of the 90-day period beginning on 
                the date he receives such notification.
        A person described in clauses (i) and (ii) of subparagraph (B) 
        who does not elect to participate in the Plan before the end of 
        the 90-day period referred to in that clause remains eligible, 
        upon reaching 60 years of age and otherwise becoming entitled to 
        retired pay, to participate in the Plan in accordance with 
        eligibility under paragraph (1)(A).
            ``(3) Elections.--
                    ``(A) Spousal consent for certain elections 
                respecting standard annuity.--A married person who is 
                eligible to provide a standard annuity may not without 
                the concurrence of the person's spouse elect--
                          ``(i) not to participate in the Plan;
                          ``(ii) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(iii) to provide an annuity for a dependent 
                      child but not for the person's spouse.
                    ``(B) Spousal consent for certain elections 
                respecting reserve-component annuity.--A married person 
                who elects to provide a reserve-component annuity may 
                not without the concurrence of the person's spouse 
                elect--
                          ``(i) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(ii) to provide an annuity for a dependent 
                      child but not for the person's spouse.
                    ``(C) Exception when spouse unavailable.--A person 
                may make an election described in subparagraph (A) or 
                (B) without the concurrence of the person's spouse if 
                the person establishes to the satisfaction of the 
                Secretary concerned--
                          ``(i) that the spouse's whereabouts cannot be 
                      determined; or
                          ``(ii) that, due to exceptional circumstances, 
                      requiring the person to seek the spouse's consent 
                      would otherwise be inappropriate.
                    ``(D) Construction with former spouse election 
                provisions.--This paragraph does not affect any right or 
                obligation to elect to provide an annuity for a former 
                spouse

[[Page 110 STAT. 2555]]

                (or for a former spouse and dependent child) under 
                subsection (b)(2).
                    ``(E) Notice to spouse of election to provide former 
                spouse annuity.--If a married person who is eligible to 
                provide a standard annuity elects to provide an annuity 
                for a former spouse (or for a former spouse and 
                dependent child) under subsection (b)(2), that person's 
                spouse shall be notified of that election.
            ``(4) Irrevocability of elections.--
                    ``(A) Standard annuity.--An election under paragraph 
                (2)(A) not to participate in the Plan is irrevocable if 
                not revoked before the date on which the person first 
                becomes entitled to retired pay.
                    ``(B) Reserve-component annuity.--An election under 
                paragraph (2)(B) to participate in the Plan is 
                irrevocable if not revoked before the end of the 90-day 
                period referred to in that paragraph.
            ``(5) Participation by person marrying after re- 
        tirement, etc.--
                    ``(A) Election to participate in plan.--A person who 
                is not married and has no dependent child upon becoming 
                eligible to participate in the Plan but who later 
                marries or acquires a dependent child may elect to 
                participate in the Plan.
                    ``(B) Manner and time of election.--Such an election 
                must be written, signed by the person making the 
                election, and received by the Secretary concerned within 
                one year after the date on which that person marries or 
                acquires that dependent child.
                    ``(C) Limitation on revocation of election.--Such an 
                election may not be revoked except in accordance with 
                subsection (b)(3).
                    ``(D) Effective date of election.--The election is 
                effective as of the first day of the first calendar 
                month following the month in which the election is 
                received by the Secretary concerned.
                    ``(E) Designation if rcsbp election.--In the case of 
                a person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
            ``(6) Election out of plan by person with spouse coverage 
        who remarries.--
                    ``(A) General rule.--A person--
                          ``(i) who is a participant in the Plan and is 
                      providing coverage under the Plan for a spouse (or 
                      a spouse and child);
                          ``(ii) who does not have an eligible spouse 
                      beneficiary under the Plan; and
                          ``(iii) who remarries,
                may elect not to provide coverage under the Plan for the 
                person's spouse.
                    ``(B) Effect of election on retired pay.--If such an 
                election is made, reductions in the retired pay of that 
                person under section 1452 of this title shall not be 
                made.
                    ``(C) Terms and conditions of election.--An election 
                under this paragraph--
                          ``(i) is irrevocable;

[[Page 110 STAT. 2556]]

                          ``(ii) shall be made within one year after the 
                      person's remarriage; and
                          ``(iii) shall be made in such form and manner 
                      as may be prescribed in regulations under section 
                      1455 of this title.
                    ``(D) Notice to spouse.--If a person makes an 
                election under this paragraph--
                          ``(i) not to participate in the Plan;
                          ``(ii) to provide an annuity for the person's 
                      spouse at less than the maximum level; or
                          ``(iii) to provide an annuity for a dependent 
                      child but not for the person's spouse,
                the person's spouse shall be notified of that election.
                    ``(E) Construction with former spouse election 
                provisions.--This paragraph does not affect any right or 
                obligation to elect to provide an annuity to a former 
                spouse under subsection (b).

    ``(b) Insurable Interest and Former Spouse Coverage.--
            ``(1) Coverage for person with insurable interest.--
                    ``(A) General rule.--A person who is not married and 
                does not have a dependent child upon becoming eligible 
                to participate in the Plan may elect to provide an 
                annuity under the Plan to a natural person with an 
                insurable interest in that person. In the case of a 
                person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
                    ``(B) Termination of coverage.--An election under 
                subparagraph (A) for a beneficiary who is not the former 
                spouse of the person providing the annuity may be 
                terminated. Any such termination shall be made by a 
                participant by the submission to the Secretary concerned 
                of a request to discontinue participation in the Plan, 
                and such participation in the Plan shall be discontinued 
                effective on the first day of the first month following 
                the month in which the request is received by the 
                Secretary concerned. Effective on
such date, the Secretary concerned shall discontinue the reduction being 
made in such person's retired pay on account of participation in the 
Plan or, in the case of a person who has been required to make deposits 
in the Treasury on account of participation in the Plan, such person may 
discontinue making such deposits effective on such date.
                    ``(C) Form for discontinuation.--A request under 
                subparagraph (B) to discontinue participation in the 
                Plan shall be in such form and shall contain such 
                information as may be required under regulations 
                prescribed by the Secretary of Defense.
                    ``(D) Withdrawal of request for discontinuation.--
                The Secretary concerned shall furnish promptly to each 
                person who submits a request under subparagraph (B) to 
                discontinue participation in the Plan a written 
                statement of the advantages and disadvantages of 
                participating in the Plan and the possible disadvantages 
                of discontinuing participation. A person may withdraw 
                the request to discontinue participation if withdrawn 
                within 30 days after having been submitted to the 
                Secretary concerned.

[[Page 110 STAT. 2557]]

                    ``(E) Consequences of discontinuation.--Once 
                participation is discontinued, benefits may not be paid 
                in conjunction with the earlier participation in the 
                Plan and premiums paid may not be refunded. 
                Participation in the Plan may not later be resumed 
                except through a qualified election under paragraph (5) 
                of subsection (a).
            ``(2) Former spouse coverage upon becoming a participant in 
        the plan.--
                    ``(A) General rule.--A person who has a former 
                spouse upon becoming eligible to participate in the Plan 
                may elect to provide an annuity to that former spouse.
                    ``(B) Effect of former spouse election on spouse or 
                dependent child.--In the case of a person with a spouse 
                or a dependent child, such an election prevents payment 
                of an annuity to that spouse or child (other than a 
                child who is a beneficiary under an election under 
                paragraph (4)), including payment under subsection (d).
                    ``(C) Designation if more than one former spouse.--
                If there is more than one former spouse, the person 
                shall designate which former spouse is to be provided 
                the annuity.
                    ``(D) Designation if rcsbp election.--In the case of 
                a person providing a reserve-component annuity, such an 
                election shall include a designation under subsection 
                (e).
            ``(3) Former spouse coverage by persons already 
        participating in plan.--
                    ``(A) Election of coverage.--
                          ``(i) Authority for election.--A person--
                                    ``(I) who is a participant in the 
                                Plan and is providing coverage for a 
                                spouse or a spouse and child (even 
                                though there is no beneficiary currently 
                                eligible for such coverage), and
                                    ``(II) who has a former spouse who 
                                was not that person's former spouse when 
                                that person became eligible to 
                                participate in the Plan,
                      may (subject to subparagraph (B)) elect to provide 
                      an annuity to that former spouse.
                          ``(ii) Termination of previous coverage.--Any 
                      such election terminates any previous coverage 
                      under the Plan.
                          ``(iii) Manner and time of election.--Any such 
                      election must be written, signed by the person 
                      making the election, and received by the Secretary 
                      concerned within one year after the date of the 
                      decree of divorce, dissolution, or annulment.
                    ``(B) Limitation on election.--A person may not make 
                an election under subparagraph (A) to provide an annuity 
                to a former spouse who that person married after 
                becoming eligible for retired pay unless--
                          ``(i) the person was married to that former 
                      spouse for at least one year, or
                          ``(ii) that former spouse is the parent of 
                      issue by that marriage.
                    ``(C) Irrevocability, effective date, etc.--An 
                election under this paragraph may not be revoked except 
                in accordance with section 1450(f) of this title. Such 
                an election is effective as of the first day of the 
                first calendar

[[Page 110 STAT. 2558]]

                month following the month in which it is received by the 
                Secretary concerned. This paragraph does not provide the 
                authority to change a designation previously made under 
                subsection (e).
                    ``(D) Notice to spouse.--If a person who is married 
                makes an election to provide an annuity to a former 
                spouse under this paragraph, that person's spouse shall 
                be notified of the election.
            ``(4) Former spouse and child coverage.--A person who elects 
        to provide an annuity for a former spouse under paragraph (2) or 
        (3) may, at the time of the election, elect to provide coverage 
        under that annuity for both the former spouse and a dependent 
        child, if the child resulted from the person's marriage to that 
        former spouse.
            ``(5) Disclosure of whether election of former spouse 
        coverage is required.--A person who elects to provide an annuity 
        to a former spouse under paragraph (2) or (3) shall, at the time 
        of making the election, provide the Secretary concerned with a 
        written statement (in a form to be prescribed by that Secretary 
        and signed by such person and the former spouse) setting forth--
                    ``(A) whether the election is being made pursuant to 
                the requirements of a court order; or
                    ``(B) whether the election is being made pursuant to 
                a written agreement previously entered into voluntarily 
                by such person as a part of, or incident to, a 
                proceeding of divorce, dissolution, or annulment and (if 
                so)
whether such voluntary written agreement has been incorporated in, or 
ratified or approved by, a court order.

    ``(c) Persons on Temporary Disability Retired List.--The application 
of the Plan to a person whose name is on the temporary disability 
retired list terminates when his name is removed from that list and he 
is no longer entitled to disability retired pay.
    ``(d) Coverage for Survivors of Retirement-Eligible Members Who Die 
on Active Duty.--
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of a member who dies on active duty after--
                    ``(A) becoming eligible to receive retired pay;
                    ``(B) qualifying for retired pay except that he has 
                not applied for or been granted that pay; or
                    ``(C) completing 20 years of active service but 
                before he is eligible to retire as a commissioned 
                officer because he has not completed 10 years of active 
                commissioned service.
            ``(2) Dependent child annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the dependent 
        child of a member described in paragraph (1) if there is no 
        surviving spouse or if the member's surviving spouse 
        subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a member 
        described in paragraph (1) is required under a court order or 
        spousal agreement to provide an annuity to a former spouse upon 
        becoming eligible to be a participant in the Plan or has made an 
        election under subsection (b) to provide an annuity to a former 
        spouse, the Secretary--

[[Page 110 STAT. 2559]]

                    ``(A) may not pay an annuity under paragraph (1) or 
                (2); but
                    ``(B) shall pay an annuity to that former spouse as 
                if the member had been a participant in the Plan and had 
                made an election under subsection (b) to provide an 
                annuity to the former spouse, or in accordance with that 
                election, as the case may be, if the Secretary receives 
                a written request from the former spouse concerned that 
                the election be deemed to have been made in the same 
                manner as provided in section 1450(f)(3) of this title.
            ``(4) Priority.--An annuity that may be provided under this 
        subsection shall be provided in preference to an annuity that 
        may be provided under any other provision of this subchapter on 
        account of service of the same member.
            ``(5) Computation.--The amount of an annuity under this 
        subsection is computed under section 1451(c) of this title.

    ``(e) Designation for Commencement of Reserve-Component Annuity.--In 
any case in which a person electing to participate in the Plan is 
required to make a designation under this subsection, the person making 
such election shall designate whether, in the event he dies before 
becoming 60 years of age, the annuity provided shall become effective 
on--
            ``(1) the day after the date of his death; or
            ``(2) the 60th anniversary of his birth.

    ``(f) Coverage of Survivors of Persons Dying When Eligible To Elect 
Reserve-Component Annuity.--
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of a person who is eligible to provide a reserve-
        component annuity and who dies--
                    ``(A) before being notified under section 12731(d) 
                of this title that he has completed the years of service 
                required for eligibility for reserve-component retired 
                pay; or
                    ``(B) during the 90-day period beginning on the date 
                he receives notification under section 12731(d) of this 
                title that he has completed the years of service 
                required for eligibility for reserve-component retired 
                pay if he had not made an election under subsection 
                (a)(2)(B) to participate in the Plan.
            ``(2) Dependent child annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the dependent 
        child of a person described in paragraph (1) if there is no 
        surviving spouse or if the person's surviving spouse 
        subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a person 
        described in paragraph (1) is required under a court order or 
        spousal agreement to provide an annuity to a former spouse upon 
        becoming eligible to be a participant in the Plan or has made an 
        election under subsection (b) to provide an annuity to a former 
        spouse, the Secretary--
                    ``(A) may not pay an annuity under paragraph (1) or 
                (2); but
                    ``(B) shall pay an annuity to that former spouse as 
                if the person had been a participant in the Plan and had 
                made an election under subsection (b) to provide an 
                annuity to the former spouse, or in accordance with that 
                election, as the case may be, if the Secretary receives 
                a written

[[Page 110 STAT. 2560]]

                request from the former spouse concerned that the 
                election be deemed to have been made in the same manner 
                as provided in section 1450(f)(3) of this title.
            ``(4) Computation.--The amount of an annuity under this 
        subsection is computed under section 1451(c) of this title.

    ``(g) Election To Increase Coverage Upon Remarriage.--
            ``(1) Election.--A person--
                    ``(A) who is a participant in the Plan and is 
                providing coverage under subsection (a) for a spouse or 
                a spouse and child, but at less than the maximum level; 
                and
                    ``(B) who remarries,
        may elect, within one year of such remarriage, to increase the 
        level of coverage provided under the Plan to a level not in 
        excess of the current retired pay of that person.
            ``(2) Payment required.--Such an election shall be 
        contingent on the person paying to the United States the amount 
        determined under paragraph (3) plus interest on such amount at a 
        rate determined under regulations prescribed by the Secretary of 
        Defense.
            ``(3) Amount to be paid.--The amount referred to in 
        paragraph (2) is the amount equal to the difference between--
                    ``(A) the amount that would have been withheld from 
                such person's retired pay under section 1452 of this 
                title if the higher level of coverage had been in effect 
                from the time the person became a participant in the 
                Plan; and
                    ``(B) the amount of such person's retired pay 
                actually withheld.
            ``(4) Manner of making election.--An election under 
        paragraph (1) shall be made in such manner as the Secretary 
        shall prescribe and shall become effective upon receipt of the 
        payment required by paragraph (2).
            ``(5) Disposition of payments.--A payment received under 
        this subsection by the Secretary of Defense shall be deposited 
        into the Department of Defense Military Retirement Fund. Any 
        other payment received under this subsection shall be deposited 
        in the Treasury as miscellaneous receipts.

``Sec. 1449. Mental incompetency of member

    ``(a) Election by Secretary Concerned on Behalf of Mentally 
Incompetent Member.--If a person to whom section 1448 of this title 
applies is determined to be mentally incompetent by medical officers of 
the armed force concerned or of the Department of Veterans Affairs, or 
by a court of competent jurisdiction, an election described in 
subsection (a)(2) or (b) of section 1448 of this title may be made on 
behalf of that person by the Secretary concerned.
    ``(b) Revocation of Election by Member.--
            ``(1) Authority upon subsequent determination of mental 
        competence.--If a person for whom the Secretary has made an 
        election under subsection (a) is later determined to be mentally 
        competent by an authority named in that subsection, that person 
        may, within 180 days after that determination, revoke that 
        election.
            ``(2) Deductions from retired pay not to be refunded.--Any 
        deduction made from retired pay by reason of such an election 
        may not be refunded.

[[Page 110 STAT. 2561]]

``Sec. 1450. Payment of annuity: beneficiaries

    ``(a) <<NOTE: Effective date.>> In General.--Effective as of the 
first day after the death of a person to whom section 1448 of this title 
applies (or on such other day as that person may provide under 
subsection (j)), a monthly annuity under section 1451 of this title 
shall be paid to the person's beneficiaries under the Plan, as follows:
            ``(1) Surviving spouse or former spouse.--The eligible 
        surviving spouse or the eligible former spouse.
            ``(2) Surviving children.--The surviving dependent children 
        in equal shares, if the eligible surviving spouse or the 
        eligible former spouse is dead, dies, or otherwise becomes 
        ineligible under this section.
            ``(3) Dependent children.--The dependent children in equal 
        shares if the person to whom section 1448 of this title applies 
        (with the concurrence of the person's spouse, if required under 
        section 1448(a)(3) of this title) elected to provide an annuity 
        for dependent children but not for the spouse or former spouse.
            ``(4) Natural person designated under `insurable interest' 
        coverage.--The natural person designated under section 
        1448(b)(1) of this title, unless the election to provide an 
        annuity to the natural person has been changed as provided in 
        subsection (f).

    ``(b) Termination of Annuity for Death, Remarriage Before Age 55, 
Etc.--
            ``(1) General rule.--An annuity payable to the beneficiary 
        terminates effective as of the first day of the month in which 
        eligibility is lost.
            ``(2) Termination of spouse annuity upon death or remarriage 
        before age 55.--An annuity for a surviving spouse or former 
        spouse shall be paid to the surviving spouse or former spouse 
        while the surviving spouse or former spouse is living or, if the 
        surviving spouse or former spouse remarries before reaching age 
        55, until the surviving spouse or former spouse remarries.
            ``(3) Effect of termination of subsequent marriage before 
        age 55.--If the surviving spouse or former spouse remarries 
        before reaching age 55 and that marriage is terminated by death, 
        annulment, or divorce, payment of the annuity shall be resumed 
        effective as of the first day of the month in which the marriage 
        is so terminated. However, if the surviving spouse or former 
        spouse is also entitled to an annuity under the Plan based upon 
        the marriage so terminated, the surviving spouse or former 
        spouse may not receive both annuities but must elect which to 
        receive.

    ``(c) Offset for Amount of Dependency and Indemnity Compensation.--
            ``(1) Required offset.--If, upon the death of a person to 
        whom section 1448 of this title applies, the surviving spouse or 
        former spouse of that person is also entitled to dependency and 
        indemnity compensation under section 1311(a) of title 38, the 
        surviving spouse or former spouse may be paid an annuity under 
        this section, but only in the amount that the annuity otherwise 
        payable under this section would exceed that compensation.
            ``(2) Effective date of offset.--A reduction in an annuity 
        under this section required by paragraph (1) shall be effective

[[Page 110 STAT. 2562]]

        on the date of the commencement of the period of payment of such 
        dependency and indemnity compensation under title 38.

    ``(d) Limitation on Payment of Annuities When Coverage Under Civil 
Service Retirement Elected.--If, upon the death of a person to whom 
section 1448 of this title applies, that person had in effect a waiver 
of that person's retired pay for the purposes of subchapter III of 
chapter 83 of title 5, an annuity under this section shall not be 
payable unless, in accordance with section 8339(j) of title 5, that 
person
notified the Office of Personnel Management that he did not desire any 
spouse surviving him to receive an annuity under section 8341(b) of that 
title.

    ``(e) Refund of Amounts Deducted From Retired Pay When DIC Offset Is 
Applicable.--
            ``(1) Full refund when dic greater than sbp annuity.--If an 
        annuity under this section is not payable because of subsection 
        (c), any amount deducted from the retired pay of the deceased 
        under section 1452 of this title shall be refunded to the 
        surviving spouse or former spouse.
            ``(2) Partial refund when sbp annuity reduced by dic.--If, 
        because of subsection (c), the annuity payable is less than the 
        amount established under section 1451 of this title, the annuity 
        payable shall be recalculated under that section. The amount of 
        the reduction in the retired pay required to provide that 
        recalculated annuity shall be computed under section 1452 of 
        this title, and the difference between the amount deducted 
        before the computation of that recalculated annuity and the 
        amount that would have been deducted on the basis of that 
        recalculated annuity shall be refunded to the surviving spouse 
        or former spouse.

    ``(f) Change in Election of Insurable Interest or Former Spouse 
Beneficiary.--
            ``(1) Authorized changes.--
                    ``(A) Election in favor of spouse or child.--A 
                person who elects to provide an annuity to a person 
                designated by him under section 1448(b) of this title 
                may, subject to paragraph (2), change that election and 
                provide an annuity to his spouse or dependent child.
                    ``(B) Notice.--The Secretary concerned shall notify 
                the former spouse or other natural person previously 
                designated under section 1448(b) of this title of any 
                change of election under subparagraph (A).
                    ``(C) Procedures, effective date, etc.--Any such 
                change of election is subject to the same rules with 
                respect to execution, revocation, and effectiveness as 
                are set forth in section 1448(a)(5) of this title 
                (without regard to the eligibility of the person making 
                the change of election to make such an election under 
                that section).
            ``(2) Limitation on change in beneficiary when former spouse 
        coverage in effect.--A person who, incident to a proceeding of 
        divorce, dissolution, or annulment, is required by a court order 
        to elect under section 1448(b) of this title to provide an 
        annuity to a former spouse (or to both a former spouse and 
        child), or who enters into a written agreement (whether 
        voluntary or required by a court order) to make such an 
        election, and who makes an election pursuant to such order or 
        agreement, may not change that election under paragraph

[[Page 110 STAT. 2563]]

        (1) unless, of the following requirements, whichever are 
        applicable in a particular case are satisfied:
                    ``(A) In a case in which the election is required by 
                a court order, or in which an agreement to make the 
                election has been incorporated in or ratified or 
                approved by a court order, the person--
                          ``(i) furnishes to the Secretary concerned a 
                      certified copy of a court order which is regular 
                      on its face and which modifies the provisions of 
                      all previous court orders relating to such 
                      election, or the agreement to make such election, 
                      so as to permit the person to change the election; 
                      and
                          ``(ii) certifies to the Secretary concerned 
                      that the court order is valid and in effect.
                    ``(B) In a case of a written agreement that has not 
                been incorporated in or ratified or approved by a court 
                order, the person--
                          ``(i) furnishes to the Secretary concerned a 
                      statement, in such form as the Secretary concerned 
                      may prescribe, signed by the former spouse and 
                      evidencing the former spouse's agreement to a 
                      change in the election under paragraph (1); and
                          ``(ii) certifies to the Secretary concerned 
                      that the statement is current and in effect.
            ``(3) Required former spouse election to be deemed to have 
        been made.--
                    ``(A) Deemed election upon request by former 
                spouse.--If a person described in paragraph (2) or (3) 
                of section 1448(b) of this title is required (as 
                described in subparagraph (B)) to elect under section 
                1448(b) of this title to provide an annuity to a former 
                spouse and such person then fails or refuses to make 
                such an election, such person shall be deemed to have 
                made such an election if the Secretary concerned 
                receives the following:
                          ``(i) Request from former spouse.--A written 
                      request, in such manner as the Secretary shall 
                      prescribe, from the former spouse concerned 
                      requesting that such an election be deemed to have 
                      been made.
                          ``(ii) Copy of court order or other official 
                      statement.--Either--
                                    ``(I) a copy of the court order, 
                                regular on its face, which requires such 
                                election or incorporates, ratifies, or 
                                approves the written agreement of such 
                                person; or
                                    ``(II) a statement from the clerk of 
                                the court (or other appropriate 
                                official) that such agreement has been 
                                filed with the court in accordance with 
                                applicable State law.
                    ``(B) Persons required to make election.--A person 
                shall be considered for purposes of subparagraph (A) to 
                be required to elect under section 1448(b) of this title 
                to provide an annuity to a former spouse if--
                          ``(i) the person enters, incident to a 
                      proceeding of divorce, dissolution, or annulment, 
                      into a written agreement to make such an election 
                      and the agreement (I) has been incorporated in or 
                      ratified or
approved by a court order, or (II) has been filed with the court

[[Page 110 STAT. 2564]]

of appropriate jurisdiction in accordance with appli-
cable State law; or
                          ``(ii) the person is required by a court order 
                      to make such an election.
                    ``(C) Time limit for request by former spouse.--An 
                election may not be deemed to have been made under 
                subparagraph (A) in the case of any person unless the 
                Secretary concerned receives a request from the former 
                spouse of the person within one year of the date of the 
                court order or filing involved.
                    ``(D) Effective date of deemed election.--An 
                election deemed to have been made under subparagraph (A) 
                shall become effective on the first day of the first 
                month which begins after the date of the court order or 
                filing involved.
            ``(4) Former spouse coverage may be required by court 
        order.--A court order may require a person to elect (or to enter 
        into an agreement to elect) under section 1448(b) of this title 
        to provide an annuity to a former spouse (or to both a former 
        spouse and child).

    ``(g) Limitation on Changing or Revoking Elections.--
            ``(1) In general.--An election under this section may not be 
        changed or revoked.
            ``(2) Exceptions.--Paragraph (1) does not apply to--
                    ``(A) a revocation of an election under section 
                1449(b) of this title; or
                    ``(B) a change in an election under subsection (f).

    ``(h) Treatment of Annuities Under Other Laws.--Except as provided 
in section 1451 of this title, an annuity under this section is in 
addition to any other payment to which a person is entitled under any 
other provision of law. Such annuity shall be considered as income under 
laws administered by the Secretary of Veterans Affairs.
    ``(i) Annuities Exempt From Certain Legal Process.--Except as 
provided in subsection (l)(3)(B), an annuity under this section is not 
assignable or subject to execution, levy, attachment, garnishment, or 
other legal process.
    ``(j) Effective Date of Reserve-Component Annuities.--
            ``(1) Persons making section 1448(e) designation.--An 
        annuity elected by a person providing a reserve-component 
        annuity shall be effective in accordance with the designation 
        made by such person under section 1448(e) of this title.
            ``(2) Persons dying before making section 1448(e) 
        designation.--An annuity payable under section 1448(f) of this 
        title shall be effective on the day after the date of the death 
        of the person upon whose service the right to the annuity is 
        based.

    ``(k) Adjustment of Spouse or Former Spouse Annuity Upon Loss of 
Dependency and Indemnity Compensation.--
            ``(1) Readjustment if beneficiary 55 years of age or more.--
        If a surviving spouse or former spouse whose annuity has been 
        adjusted under subsection (c) subsequently loses entitlement to 
        dependency and indemnity compensation under section 1311(a) of 
        title 38 because of the remarriage of the surviving spouse, or 
        former spouse, and if at the time of such remarriage the 
        surviving spouse or former spouse is 55 years of age or more, 
        the amount of the annuity of the surviving

[[Page 110 STAT. 2565]]

        spouse or former spouse shall be readjusted, effective on the 
        effective date of such loss of dependency and indemnity 
        compensation, to the amount of the annuity which would be in 
        effect with respect to the surviving spouse or former spouse if 
        the adjustment under subsection (c) had never been made.
            ``(2) Repayment of amounts previously refunded.--
                    ``(A) General rule.--A surviving spouse or former 
                spouse whose annuity is readjusted under paragraph (1) 
                shall repay any amount refunded under subsection (e) by 
                reason of the adjustment under subsection (c).
                    ``(B) Interest required if repayment not a lump 
                sum.--If the repayment is not made in a lump sum, the 
                surviving spouse or former spouse shall pay interest on 
                the amount to be repaid. Such interest shall commence on 
                the date on which the first such payment is due and 
                shall be applied over the period during which any part 
                of the repayment remains to be paid.
                    ``(C) Manner of repayment; rate of interest.--The 
                manner in which such repayment shall be made, and the 
                rate of any such interest, shall be prescribed in 
                regulations under section 1455 of this title.
                    ``(D) Deposit of amounts repaid.--An amount repaid 
                under this paragraph (including any such interest) 
                received by the Secretary of Defense shall be deposited 
                into the Department of Defense Military Retirement Fund. 
                Any other amount repaid under this paragraph shall be 
                deposited into the Treasury as miscellaneous receipts.

    ``(l) Participants in the Plan Who Are Missing.--
            ``(1) Authority to presume death of missing participant.--
                    ``(A) In general.--Upon application of the 
                beneficiary of a participant in the Plan who is missing, 
                the Secretary concerned may determine for purposes of 
                this subchapter that the participant is presumed dead.
                    ``(B) Participant who is missing.--A participant in 
                the Plan is considered to be missing for purposes of 
                this subsection if--
                          ``(i) the retired pay of the participant has 
                      been suspended on the basis that the participant 
                      is missing; or
                          ``(ii) in the case of a participant in the 
                      Plan who would be eligible for reserve-component 
                      retired pay but for the fact that he is under 60 
                      years of
age, his retired pay, if he were entitled to retired pay, would be 
suspended on the basis that he is missing.
                    ``(C) Requirements applicable to presumption of 
                death.--Any such determination shall be made in 
                accordance with regulations prescribed under section 
                1455 of this title. The Secretary concerned may not make 
                a determination for purposes of this subchapter that a 
                participant who is missing is presumed dead unless the 
                Secretary finds that--
                          ``(i) the participant has been missing for at 
                      least 30 days; and
                          ``(ii) the circumstances under which the 
                      participant is missing would lead a reasonably 
                      prudent person to conclude that the participant is 
                      dead.

[[Page 110 STAT. 2566]]

            ``(2) Commencement of annuity.--Upon a determination under 
        paragraph (1) with respect to a participant in the Plan, an 
        annuity otherwise payable under this subchapter shall be paid as 
        if the participant died on the date as of which the retired pay 
        of the participant was suspended.
            ``(3) Effect of person not being dead.--
                    ``(A) Termination of annuity.--If, after a 
                determination under paragraph (1), the Secretary 
                concerned determines that the participant is alive--
                          ``(i) any annuity being paid under this 
                      subchapter by reason of this subsection shall be 
                      terminated; and
                          ``(ii) the total amount of any annuity 
                      payments made by reason of this subsection shall 
                      constitute a debt to the United States.
                    ``(B) Collection from participant of annuity amounts 
                erroneously paid.--A debt under subparagraph (A)(ii) may 
                be collected or offset--
                          ``(i) from any retired pay otherwise payable 
                      to the participant;
                          ``(ii) if the participant is entitled to 
                      compensation under chapter 11 of title 38, from 
                      that compen- 
                      sation; or
                          ``(iii) if the participant is entitled to any 
                      other payment from the United States, from that 
                      payment.
                    ``(C) Collection from beneficiary.--If the 
                participant dies before the full recovery of the amount 
                of annuity payments described in subparagraph (A)(ii) 
                has been made by the United States, the remaining amount 
                of such annuity payments may be collected from the 
                participant's beneficiary under the Plan if that 
                beneficiary was the recipient of the annuity payments 
                made by reason of this subsection.

``Sec. 1451. Amount of annuity

    ``(a) Computation of Annuity for a Spouse, Former Spouse, or 
Child.--
            ``(1) Standard annuity.--In the case of a standard annuity 
        provided to a beneficiary under section 1450(a) of this title 
        (other than under section 1450(a)(4)), the monthly annuity 
        payable to the beneficiary shall be determined as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                beneficiary is under 62 years of age or is a dependent 
                child when becoming entitled to the annuity, the monthly 
                annuity shall be the amount equal to 55 percent of the 
                base amount.
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the beneficiary (other 
                      than a dependent child) is 62 years of age or 
                      older when becoming entitled to the annuity, the 
                      monthly annuity shall be the amount equal to 35 
                      percent of the base amount.
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be

[[Page 110 STAT. 2567]]

                      computed under that subsection rather than under 
                      clause (i).
            ``(2) Reserve-component annuity--In the case of a reserve-
        component annuity provided to a beneficiary under section 
        1450(a) of this title (other than under section 1450(a)(4)), the 
        monthly annuity payable to the beneficiary shall be determined 
        as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                beneficiary is under 62 years of age or is a dependent 
                child when becoming entitled to the annuity, the monthly 
                annuity shall be the amount equal to a percentage of the 
                base amount that--
                          ``(i) is less than 55 percent; and
                          ``(ii) is determined under subsection (f).
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the beneficiary (other 
                      than a dependent child) is 62 years of age or 
                      older when becoming entitled to the annuity, the 
                      monthly annuity shall be the amount equal to a 
                      percentage of the base amount that--
                                    ``(I) is less than 35 percent; and
                                    ``(II) is determined under 
                                subsection (f).
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be computed 
                      under that subsection rather than under clause 
                      (i).

    ``(b) Insurable Interest Beneficiary.--
            ``(1) Standard annuity.--In the case of a standard annuity 
        provided to a beneficiary under section 1450(a)(4) of this 
        title, the monthly annuity payable to the beneficiary shall be 
        the amount equal to 55 percent of the retired pay of the person 
        who elected to provide the annuity after the reduction in that 
        pay in accordance with section 1452(c) of this title.
            ``(2) Reserve-component annuity.--In the case of a reserve-
        component annuity provided to a beneficiary under section 
        1450(a)(4) of this title, the monthly annuity payable to the 
        beneficiary shall be the amount equal to a percentage of the 
        retired pay of the person who elected to provide the annuity 
        after the reduction in such pay in accordance with section 
        1452(c) of this title that--
                    ``(A) is less than 55 percent; and
                    ``(B) is determined under subsection (f).
            ``(3) Computation of reserve-component annuity when 
        participant dies before age 60.--For the purposes of paragraph 
        (2), a person--
                    ``(A) who provides an annuity that is determined in 
                accordance with that paragraph;
                    ``(B) who dies before becoming 60 years of age; and
                    ``(C) who at the time of death is otherwise entitled 
                to retired pay,
        shall be considered to have been entitled to retired pay at the 
        time of death. The retired pay of such person for the

[[Page 110 STAT. 2568]]

        purposes of such paragraph shall be computed on the basis of the 
        rates of basic pay in effect on the date on which the annuity 
        provided by such person is to become effective in accordance 
        with the designation of such person under section 1448(e) of 
        this title.

    ``(c) Annuities for Survivors of Certain Persons Dying During a 
Period of Special Eligibility for SBP.--
            ``(1) In general.--In the case of an annuity provided under 
        section 1448(d) or 1448(f) of this title, the amount of the 
        annuity shall be determined as follows:
                    ``(A) Beneficiary under 62 years of age.--If the 
                person receiving the annuity is under 62 years of age or 
                is a dependent child when the member or former member 
                dies, the monthly annuity shall be the amount equal to 
                55 percent of the retired pay to which the member or 
                former member would have been entitled if the member or 
                former member had been entitled to that pay based upon 
                his years of active service when he died.
                    ``(B) Beneficiary 62 years of age or older.--
                          ``(i) General rule.--If the person receiving 
                      the annuity (other than a dependent child) is 62 
                      years of age or older when the member or former 
                      member dies, the monthly annuity shall be the 
                      amount equal to 35 percent of the retired pay to 
                      which the member or former member would have been 
                      entitled if the member or former member had been 
                      entitled to that pay based upon his years of 
                      active service when he died.
                          ``(ii) Rule if beneficiary eligible for social 
                      security offset computation.--If the beneficiary 
                      is eligible to have the annuity computed under 
                      subsection (e) and if, at the time the beneficiary 
                      becomes entitled to the annuity, computation of 
                      the annuity under that subsection is more 
                      favorable to the beneficiary than computation 
                      under clause (i), the annuity shall be computed 
                      under that subsection rather than under clause 
                      (i).
            ``(2) DIC offset.--An annuity computed under paragraph (1) 
        that is paid to a surviving spouse shall be reduced by the 
        amount of dependency and indemnity compensation to which the 
        surviving spouse is entitled under section 1311(a) of title 38. 
        Any such reduction shall be effective on the date of the 
        commencement of the period of payment of such compensation under 
        title 38.
            ``(3) Servicemembers not yet granted retired pay.--In the 
        case of an annuity provided by reason of the service of a member 
        described in section 1448(d)(1)(B) or 1448(d)(1)(C) of this 
        title who first became a member of a uniformed service before 
        September 8, 1980, the retired pay to which the member would 
        have been entitled when he died shall be determined for purposes 
        of paragraph (1) based upon the rate of basic pay in effect at 
        the time of death for the grade in which the member was serving 
        at the time of death, unless (as determined by the Secretary 
        concerned) the member would have been entitled to be retired in 
        a higher grade.
            ``(4) Rate of pay to be used in computing annuity.--In the 
        case of an annuity paid under section 1448(f) of this

[[Page 110 STAT. 2569]]

        title by reason of the service of a person who first became a 
        member of a uniformed service before September 8, 1980, the 
        retired pay of the person providing the annuity shall 
        for the purposes of paragraph (1) be computed on the basis of 
        the rates of basic pay in effect on the effective date of the 
        annuity.

    ``(d) Reduction of Annuities at Age 62.--
            ``(1) Reduction required.--The annuity of a person whose 
        annuity is computed under subparagraph (A) of subsection (a)(1), 
        (a)(2), or (c)(1) shall be reduced on the first day of the month 
        after the month in which the person becomes 62 years of age.
            ``(2) Amount of annuity as reduced.--
                    ``(A) 35 percent annuity.--Except as provided in 
                subparagraph (B), the reduced amount of the annuity 
                shall be the amount of the annuity that the person would 
                be receiving on that date if the annuity had initially 
                been computed under subparagraph (B) of that subsection.
                    ``(B) Savings provision for beneficiaries eligible 
                for social security offset
computation.--In the case of a person eligible to have an annuity 
computed under subsection (e) and for whom, at the time the person 
becomes 62 years of age, the annuity computed with a reduction under 
subsection (e)(3) is more favorable than the annuity with a reduction 
described in subparagraph (A), the reduction in the annuity shall be 
computed in the same manner as a reduction under subsection (e)(3).

    ``(e) Savings Provision for Certain Beneficiaries.--
            ``(1) Persons covered.--The following beneficiaries under 
        the Plan are eligible to have an annuity under the Plan computed 
        under this subsection:
                    ``(A) A beneficiary receiving an annuity under the 
                Plan on October 1, 1985, as the surviving spouse or 
                former spouse of the person providing the annuity.
                    ``(B) A spouse or former spouse beneficiary of a 
                person who on October 1, 1985--
                          ``(i) was a participant in the Plan;
                          ``(ii) was entitled to retired pay or was 
                      qualified for that pay except that he had not 
                      applied for and been granted that pay; or
                          ``(iii) would have been eligible for reserve-
                      component retired pay but for the fact that he was 
                      under 60 years of age.
            ``(2) Amount of annuity.--Subject to paragraph (3), an 
        annuity computed under this subsection is determined as follows:
                    ``(A) Standard annuity.--In the case of the 
                beneficiary of a standard annuity, the annuity shall be 
                the amount equal to 55 percent of the base amount.
                    ``(B) Reserve-component annuity.--In the case of the 
                beneficiary of a reserve-component annuity, the annuity 
                shall be the percentage of the base amount that--
                          ``(i) is less than 55 percent; and
                          ``(ii) is determined under subsection (f).
                    ``(C) Beneficiaries of persons dying during a period 
                of special eligibility for sbp.--In the case of the 
                beneficiary of an annuity under section 1448(d) or 
                1448(f) of

[[Page 110 STAT. 2570]]

                this title, the annuity shall be the amount equal to 55 
                percent of the retired pay of the person providing the 
                annuity (as that pay is determined under subsection 
                (c)).
            ``(3) Social security offset.--An annuity computed under 
        this subsection shall be reduced by the lesser of the following:
                    ``(A) Social security computation.--The amount of 
                the survivor benefit, if any, to which the surviving 
                spouse (or the former spouse, in the case of a former 
                spouse beneficiary who became a former spouse under a 
                divorce that became final after November 29, 1989) would 
                be 
                entitled under title II of the Social Security Act (42 
                U.S.C. 401 et seq.) based solely upon service by the 
                person concerned as described in section 210(l)(1) of 
                such Act (42 U.S.C. 410(l)(1)) and calculated assuming 
                that the person concerned lives to age 65.
                    ``(B) Maximum amount of reduction.--40 percent of 
                the amount of the monthly annuity as determined under 
                paragraph (2).
            ``(4) Special rules for social security offset 
        computation.--
                    ``(A) Treatment of deductions made on account of 
                work.--For the purpose of paragraph (3), a surviving 
                spouse (or a former spouse, in the case of a person who 
                becomes a former spouse under a divorce that becomes 
                final after November 29, 1989) shall not be considered 
                as entitled to a benefit under title II of the Social 
                Security Act (42 U.S.C. 401 et seq.) to the extent that 
                such benefit has been offset by deductions under section 
                203 of such Act (42 U.S.C. 403) on account of work.
                    ``(B) Treatment of certain periods for which social 
                security refunds are made.--In the computation of any 
                reduction made under paragraph (3), there shall be 
                excluded any period of service described in section 
                210(l)(1) of the Social Security Act (42 U.S.C. 
                410(l)(1))--
                          ``(i) which was performed after December 1, 
                      1980; and
                          ``(ii) which involved periods of service of 
                      less than 30 continuous days for which the person 
                      concerned is entitled to receive a refund under 
                      section 6413(c) of the Internal Revenue Code of 
                      1986 of the social security tax which the person 
                      had paid.

    ``(f) Determination of Percentages Applicable to Computation of 
Reserve-Component Annuities.-- <<NOTE: Regulations.>> The percentage to 
be applied in determining the amount of an annuity computed under 
subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under 
regulations prescribed by the Secretary of Defense. Such regulations 
shall be prescribed taking into consideration the following:
            ``(1) The age of the person electing to provide the annuity 
        at the time of such election.
            ``(2) The difference in age between such person and the 
        beneficiary of the annuity.
            ``(3) Whether such person provided for the annuity to become 
        effective (in the event he died before becoming 60 years of age) 
        on the day after his death or on the 60th anniversary of his 
        birth.
            ``(4) Appropriate group annuity tables.
            ``(5) Such other factors as the Secretary considers 
        relevant.

[[Page 110 STAT. 2571]]

    ``(g) Adjustments to Annuities.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in annuities when retired pay 
                increased.--Whenever retired pay is increased under 
                section 1401a of this title (or any other provision
of law), each annuity that is payable under the Plan shall be increased 
at the same time.
                    ``(B) Percentage of increase.--The increase shall, 
                in the case of any annuity, be by the same percent 
                as the percent by which the retired pay of the person 
                providing the annuity would have been increased at such 
                time if the person were alive (and otherwise entitled to 
                such pay).
                    ``(C) Certain reductions to be disregarded.--The 
                amount of the increase shall be based on the monthly 
                annuity payable before any reduction under section 
                1450(c) of this title or under subsection (c)(2).
            ``(2) Rounding down.--The monthly amount of an annuity 
        payable under this subchapter, if not a multiple of $1, shall be 
        rounded to the next lower multiple of $1.

    ``(h) Adjustments to Base Amount.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in base amount when retired pay 
                increased.--Whenever retired pay is increased under 
                section 1401a of this title (or any other provision of 
                law), the base amount applicable to each participant in 
                the Plan shall be increased at the same time.
                    ``(B) Percentage of increase.--The increase shall be 
                by the same percent as the percent by which the retired 
                pay of the participant is so increased.
            ``(2) Recomputation at age 62.--When the retired pay of a 
        person who first became a member of a uniformed service on or 
        after August 1, 1986, and who is a participant in the Plan is 
        recomputed under section 1410 of this title upon the person's 
        becoming 62 years of age, the base amount applicable to that 
        person shall be recomputed (effective on the effective date of 
        the recomputation of such retired pay under section 1410 of this 
        title) so as to be the amount equal to the amount of the base 
        amount that would be in effect on that date if increases in such 
        base amount under paragraph (1) had been computed as provided in 
        paragraph (2) of section 1401a(b) of this title (rather than 
        under paragraph (3) of that section).
            ``(3) Disregarding of retired pay reductions for retirement 
        before 30 years of service.--Computation of a member's retired 
        pay for purposes of this section shall be made without regard to 
        any reduction under section 1409(b)(2) of this title.

    ``(i) Recomputation of Annuity for Certain Beneficiaries.--In the 
case of an annuity under the Plan which is computed on the basis of the 
retired pay of a person who would have been entitled to have that 
retired pay recomputed under section 1410 of this title upon attaining 
62 years of age, but who dies before attaining that age, the annuity 
shall be recomputed, effective on the first day of the first month 
beginning after the date on which the member or former member would have 
attained 62 years of age, so as to be the amount equal to the amount of 
the annuity that would be in effect on that date if increases

[[Page 110 STAT. 2572]]

under subsection (h)(1) in the base amount applicable to that annuity to 
the time of the death of the member or former member, and increases in 
such annuity under subsection (g)(1), had been computed as provided in 
paragraph (2) of section 1401a(b) of this title (rather than under 
paragraph (3) of that section).

``Sec. 1452. Reduction in retired pay

    ``(a) Spouse and Former Spouse Annuities.--
            ``(1) Required reduction in retired pay.--Except as provided 
        in subsection (b), the retired pay of a participant in the Plan 
        who is providing spouse coverage (as described in paragraph (5)) 
        shall be reduced as follows:
                    ``(A) Standard annuity.--If the annuity coverage 
                being providing is a standard annuity, the reduction 
                shall be as follows:
                          ``(i) Disability and nonregular service re- 
                      tirees.--In the case of a person who is entitled 
                      to retired pay under chapter 61 or chapter 1223 of 
                      this title, the reduction shall be in whichever of 
                      the alternative reduction amounts is more 
                      favorable to that person.
                          ``(ii) Members as of enactment of flat-rate 
                      reduction.--In the case of a person who first 
                      became a member of a uniformed service before 
                      March 1, 1990, the reduction shall be in whichever 
                      of the alternative reduction amounts is more 
                      favorable to that person.
                          ``(iii) New entrants after enactment of flat-
                      rate reduction.--In the case of a person who first 
                      becomes a member of a uniformed service on or 
                      after March 1, 1990, and who is entitled to 
                      retired pay under a provision of law other than 
                      chapter 61 or chapter 1223 of this title, the 
                      reduction shall be in an amount equal to 6\1/2\ 
                      percent of the base amount.
                          ``(iv) Alternative reduction amounts.--For 
                      purposes of clauses (i) and (ii), the alternative 
                      reduction amounts are the following:
                                    ``(I) Flat-rate reduction.--An 
                                amount equal to 6\1/2\ percent of the 
                                base amount.
                                    ``(II) Amount under pre-flat-rate 
                                reduction.--An amount equal to 2\1/2\ 
                                percent of the first $337 (as adjusted 
                                after November 1, 1989, under paragraph 
                                (4)) of the base amount plus 10 percent 
                                of the remainder of the base amount.
                    ``(B) Reserve-component annuity.--If the annuity 
                coverage being provided is a reserve-component annuity, 
                the reduction shall be in whichever of the following 
                amounts is more favorable to that person:
                          ``(i) Flat-rate reduction.--An amount equal to 
                      6\1/2\ percent of the base amount plus an amount 
                      determined in accordance with regulations 
                      prescribed by the Secretary of Defense as a 
                      premium for the additional coverage provided 
                      through
reserve-component annuity coverage under the Plan.
                          ``(ii) Amount under pre-flat-rate reduction.--
                      An amount equal to 2\1/2\ percent of the first 
                      $337 (as adjusted after November 1, 1989, under 
                      paragraph (4)) of the base amount plus 10 percent 
                      of the remain

[[Page 110 STAT. 2573]]

                      der of the base amount plus an amount determined 
                      in accordance with regulations prescribed by the 
                      Secretary of Defense as a premium for the 
                      additional coverage provided through reserve-
                      component annuity coverage under the Plan.
            ``(2) <<NOTE: Regulations.>>  Additional reduction for child 
        coverage.--If there is a dependent child as well as a spouse or 
        former spouse, the amount prescribed under paragraph (1) shall 
        be increased by an amount prescribed under regulations of the 
        Secretary of Defense.
            ``(3) No reduction when no beneficiary.--The reduction in 
        retired pay prescribed by paragraph (1) shall not be applicable 
        during any month in which there is no eligible spouse or former 
        spouse beneficiary.
            ``(4) Periodic adjustments.--
                    ``(A) Adjustments for increases in rates of basic 
                pay.--Whenever there is an increase in the rates of 
                basic pay of members of the uniformed services effective 
                on or after October 1, 1985, the amounts under paragraph 
                (1) with respect to which the percentage factor of 2\1/
                2\ is applied shall be increased by the overall 
                percentage of such increase in the rates of basic pay. 
                The increase under the preceding sentence shall apply 
                only with respect to persons whose retired pay is 
                computed based on the rates of basic pay in effect on or 
                after the date of such increase in rates of basic pay.
                    ``(B) Adjustments for retired pay colas.--In 
                addition to the increase under subparagraph (A), the 
                amounts under paragraph (1) with respect to which the 
                percentage factor of 2\1/2\ is applied shall be further 
                increased at the same time and by the same percentage as 
                an increase in retired pay under section 1401a of this 
                title effective on or after October 1, 1985. Such 
                increase under the preceding sentence shall apply only 
                with respect to a person who initially participates in 
                the Plan on a date which is after both the effective 
                date of such increase under section 1401a and the 
                effective date of the rates of basic pay upon which that 
                person's retired pay is computed.
            ``(5) Spouse coverage described.--For the purposes of 
        paragraph (1), a participant in the Plan who is providing spouse 
        coverage is a participant who--
                    ``(A) has (i) a spouse or former spouse, or (ii) a 
                spouse or former spouse and a dependent child; and
                    ``(B) has not elected to provide an annuity to a 
                person designated by him under section 1448(b)(1) of 
                this title or, having made such an election, has changed 
                his election in favor of his spouse under section 
                1450(f) of this title.

    ``(b) Child-Only Annuities.--
            ``(1) Required reduction in retired pay.--The retired pay of 
        a participant in the Plan who is providing child-only coverage 
        (as described in paragraph (4)) shall be reduced by an amount 
        prescribed under regulations by the Secretary of Defense.
            ``(2) No reduction when no child.--There shall be no 
        reduction in retired pay under paragraph (1) for any month 
        during which the participant has no eligible dependent child.

[[Page 110 STAT. 2574]]

            ``(3) Special rule for certain rcsbp participants.--In the 
        case of a participant in the Plan who is participating in the 
        Plan under an election under section 1448(a)(2)(B) of this title 
        and who provided child-only coverage during a period before the 
        participant becomes entitled to receive retired pay, the retired 
        pay of the participant shall be reduced by an amount prescribed 
        under regulations by the Secretary of Defense to reflect the 
        coverage provided under the Plan during the period before the 
        participant became entitled to receive retired pay. A reduction 
        under this paragraph is in addition to any reduction under 
        paragraph (1) and is made without regard to whether there is an 
        eligible dependent child during a month for which the reduction 
        is made.
            ``(4) Child-only coverage defined.--For the purposes of this 
        subsection, a participant in the Plan who is providing child-
        only coverage is a participant who has a dependent child and 
        who--
                    ``(A) does not have an eligible spouse or former 
                spouse; or
                    ``(B) has a spouse or former spouse but has elected 
                to provide an annuity for dependent children only.

    ``(c) Reduction for Insurable Interest Coverage.--
            ``(1) Required reduction in retired pay.--The retired pay of 
        a person who has elected to provide an annuity to a person 
        designated by him under section 1450(a)(4) of this title shall 
        be reduced as follows:
                    ``(A) Standard annuity.--In the case of a person 
                providing a standard annuity, the reduction shall be by 
                10 percent plus 5 percent for each full five years the 
                individual designated is younger than that person.
                    ``(B) Reserve component annuity.--In the case of a 
                person providing a reserve-component annuity, the 
                reduction shall be by an amount prescribed under 
                regulations of the Secretary of Defense.
            ``(2) Limitation on total reduction.--The total reduction 
        under paragraph (1) may not exceed 40 percent.
            ``(3) Duration of reduction.--The reduction in retired pay 
        prescribed by this subsection shall continue during the lifetime 
        of the person designated under section 1450(a)(4) of this title 
        or until the person receiving retired pay changes his election 
        under section 1450(f) of this title.
            ``(4) Rule for computation.--Computation of a member's 
        retired pay for purposes of this subsection shall
be made without regard to any reduction under section 1409(b)(2) of this 
title.

    ``(d) Deposits To Cover Periods When Retired Pay Not Paid.--
            ``(1) Required deposits.--If a person who has elected to 
        participate in the Plan has been awarded retired pay and is not 
        entitled to that pay for any period, that person must deposit in 
        the Treasury the amount that would otherwise have been deducted 
        from his pay for that period.
            ``(2) Deposits not required when participant on active 
        duty.--Paragraph (1) does not apply to a person with respect to 
        any period when that person is on active duty under a call or 
        order to active duty for a period of more than 30 days.

[[Page 110 STAT. 2575]]

    ``(e) Deposits Not Required for Certain Participants in CSRS.--When 
a person who has elected to participate in the Plan waives that person's 
retired pay for the purposes of subchapter III of chapter 83 of title 5, 
that person shall not be required to make the deposit otherwise required 
by subsection (d) as long as that waiver is in effect unless, in 
accordance with section 8339(i) of title 5, that person has notified the 
Office of Personnel Management that he does not desire a spouse 
surviving him to receive an annuity under section 8331(b) of title 5.
    ``(f) Refunds of Deductions Not Allowed.--
            ``(1) General rule.--A person is not entitled to refund of 
        any amount deducted from retired pay under this section.
            ``(2) Exceptions.--Paragraph (1) does not apply--
                    ``(A) in the case of a refund authorized by section 
                1450(e) of this title; or
                    ``(B) in case of a deduction made through 
                administrative error.

    ``(g) Discontinuation of Participation by Participants Whose 
Surviving Spouses Will Be Entitled to DIC.--
            ``(1) Discontinuation.--
                    ``(A) Conditions.--Notwithstanding any other 
                provision of this subchapter but subject to paragraphs 
                (2) and (3), a person who has elected to participate in 
                the Plan and who is suffering from a service-connected 
                disability rated by the Secretary of Veterans Affairs as 
                totally disabling and has suffered from such disability 
                while so rated for a continuous period of 10 or more 
                years (or, if so rated for a lesser period, has suffered 
                from such disability while so rated for a continuous 
                period of not less than 5 years from the date of such 
                person's last discharge or release from active duty) may 
                discontinue participation in the Plan by submitting to 
                the Secretary concerned a request to discontinue 
                participation in the Plan.
                    ``(B) Effective date.--Participation in the Plan of 
                a person who submits a request under subparagraph (A) 
                shall be discontinued effective on the first day of the 
                first month following the month in which the request 
                under subparagraph (A) is received by the Secretary 
                concerned. Effective on such date, the Secretary 
                concerned shall discontinue the reduction being made in 
                such person's retired pay on account of participation in 
                the Plan or, in the case of a person who has been 
                required to make deposits in the Treasury on account of 
                participation in the Plan, such person may discontinue 
                making such deposits effective on such date.
                    ``(C) Form for request for discontinuation.--Any 
                request under this paragraph to discontinue 
                participation in the Plan shall be in such form and 
                shall contain such information as the Secretary 
                concerned may require by regulation.
            ``(2) Consent of beneficiaries required.--A person described 
        in paragraph (1) may not discontinue participation in the Plan 
        under such paragraph without the written consent of the 
        beneficiary or beneficiaries of such person under the Plan.
            ``(3) Information on plan to be provided by secretary 
        concerned.--

[[Page 110 STAT. 2576]]

                    ``(A) Information to be provided promptly to 
                participant.--The Secretary concerned shall furnish 
                promptly to each person who files a request under 
                paragraph (1) to discontinue participation in the Plan a 
                written statement of the advantages of participating in 
                the Plan and the possible disadvantages of discontinuing 
                participation.
                    ``(B) Right to withdraw discontinuation request.--A 
                person may withdraw a request made under paragraph (1) 
                if it is withdrawn within 30 days after having been 
                submitted to the Secretary concerned.
            ``(4) Refund of deductions from retired pay.--Upon the death 
        of a person described in paragraph (1) who discontinued 
        participation in the Plan in accordance with this subsection, 
        any amount deducted from the retired pay of that person under 
        this section shall be refunded to the person's surviving spouse.
            ``(5) Resumption of participation in plan.--
                    ``(A) Conditions for resumption.--A person described 
                in paragraph (1) who discontinued participation in the 
                Plan may elect to participate again in the Plan if--
                          ``(i) after having discontinued participation 
                      in the Plan the Secretary of Veterans Affairs 
                      reduces that person's service-connected disability 
                      rating to a rating of less than total; and
                          ``(ii) that person applies to the Secretary 
                      concerned, within such period of time after the 
                      reduction in such person's service-connected 
                      disability rating has been made as the Secretary 
                      concerned may prescribe, to again participate in 
                      the Plan and includes in such application such 
                      information as the Secretary concerned may 
                      require.
                    ``(B) Effective date of resumed coverage.--Such 
                person's participation in the Plan under
this paragraph is effective beginning on the first day of the month 
after the month in which the Secretary concerned receives the 
application for resumption of participation in the Plan.
                    ``(C) Resumption of contributions.--When a person 
                elects to participate in the Plan under this paragraph, 
                the Secretary concerned shall begin making reductions in 
                that person's retired pay, or require such person to 
                make deposits in the Treasury under subsection (d), as 
                appropriate, effective on the effective date of such 
                participation under subparagraph (B).

    ``(h) Increases in Reduction With Increases in Retired Pay.--
            ``(1) General rule.--Whenever retired pay is increased under 
        section 1401a of this title (or any other provision of law), the 
        amount of the reduction to be made under subsection (a) or (b) 
        in the retired pay of any person shall be increased at the same 
        time and by the same percentage as such retired pay is so 
        increased.

    ``(i) Recomputation of Reduction Upon Recomputation of Retired 
Pay.--When the retired pay of a person who first became a member of a 
uniformed service on or after August 1, 1986, and who is a participant 
in the Plan is recomputed under section 1410 of this title upon the 
person's becoming 62 years of age,

[[Page 110 STAT. 2577]]

the amount of the reduction in such retired pay under this section shall 
be recomputed (effective on the effective date of the recomputation of 
such retired pay under section 1410 of this title) so as to be the 
amount equal to the amount of such reduction that would be in effect on 
that date if increases in such retired pay under section 1401a(b) of 
this title, and increases in reductions in such retired pay under 
subsection (h), had been computed as provided in paragraph (2) of 
section 1401a(b) of this title (rather than under paragraph (3) of that 
section).

``Sec. 1453. Recovery of amounts erroneously paid

    ``(a) Recovery.--In addition to any other method of recovery 
provided by law, the Secretary concerned may authorize the recovery of 
any amount erroneously paid to a person under this subchapter by 
deduction from later payments to that person.
    ``(b) Authority To Waive Recovery.--Recovery of an amount 
erroneously paid to a person under this subchapter is not required if, 
in the judgment of the Secretary concerned and the Comptroller General--
            ``(1) there has been no fault by the person to whom the 
        amount was erroneously paid; and
            ``(2) recovery of such amount would be contrary to the 
        purposes of this subchapter or against equity and good 
        conscience.

``Sec. 1454. Correction of administrative errors

    ``(a) Authority.--The Secretary concerned may, under regulations 
prescribed under section 1455 of this title, correct or revoke any 
election under this subchapter when the Secretary considers it necessary 
to correct an administrative error.
    ``(b) Finality.--Except when procured by fraud, a correction or 
revocation under this section is final and conclusive on all officers of 
the United States.

``Sec. 1455. <<NOTE: President.>>  Regulations

    ``(a) In General.--The President shall prescribe regulations to 
carry out this subchapter. Those regulations shall, so far as 
practicable, be uniform for the uniformed services.
    ``(b) Notice of Elections.--Regulations prescribed under this 
section shall provide that before the date on which a member becomes 
entitled to retired pay--
            ``(1) if the member is married, the member and the member's 
        spouse shall be informed of the elections available under 
        section 1448(a) of this title and the effects of such elections; 
        and
            ``(2) if the notification referred to in section 
        1448(a)(3)(E) of this title is required, any former spouse of 
        the member shall be informed of the elections available and the 
        effects of such elections.

    ``(c) Procedure for Depositing Certain Receipts.--Regulations 
prescribed under this section shall establish procedures for depositing 
the amounts referred to in sections 1448(g), 1450(k)(2), and 1452(d) of 
this title.
    ``(d) Payments to Guardians and Fiduciaries.--
            ``(1) In general.--Regulations prescribed under this section 
        shall provide procedures for the payment of an annuity under 
        this subchapter in the case of--

[[Page 110 STAT. 2578]]

                    ``(A) a person for whom a guardian or other 
                fiduciary has been appointed; and
                    ``(B) a minor, mentally incompetent, or otherwise 
                legally disabled person for whom a guardian or other 
                fiduciary has not been appointed.
            ``(2) Authorized procedures.--The regulations under 
        paragraph (1) may include provisions for the following:
                    ``(A) In the case of an annuitant referred to in 
                paragraph (1)(A), payment of the annuity to the 
                appointed guardian or other fiduciary.
                    ``(B) In the case of an annuitant referred to in 
                paragraph (1)(B), payment of the annuity to any person 
                who, in the judgment of the Secretary concerned, is 
                responsible for the care of the annuitant.
                    ``(C) Subject to subparagraphs (D) and (E), a 
                requirement for the payee of an annuity to spend or 
                invest the amounts paid on behalf of the annuitant 
                solely for benefit of the annuitant.
                    ``(D) Authority for the Secretary concerned to 
                permit the payee to withhold from the annuity payment 
                such amount, not in excess of 4 percent of the annuity, 
                as the Secretary concerned considers a reasonable fee 
                for the fiduciary services of the payee when a court 
                appointment order provides for payment of such a fee to 
                the payee for such services or the Secretary concerned 
                determines that payment of a fee to such payee is 
                necessary in order to obtain the fiduciary services of 
                the payee.
                    ``(E) Authority for the Secretary concerned to 
                require the payee to provide a surety bond in an amount
sufficient to protect the interests of the annuitant and to pay for such 
bond out of the annuity.
                    ``(F) A requirement for the payee of an annuity to 
                maintain and, upon request, to provide to the Secretary 
                concerned an accounting of expenditures and investments 
                of amounts paid to the payee.
                    ``(G) In the case of an annuitant referred to in 
                paragraph (1)(B)--
                          ``(i) procedures for determining incompetency 
                      and for selecting a payee to represent the 
                      annuitant for the purposes of this section, 
                      including provisions for notifying the annuitant 
                      of the actions being taken to make such a 
                      determination and to select a representative 
                      payee, an opportunity for the annuitant to review 
                      the evidence being considered, and an opportunity 
                      for the annuitant to submit additional evidence 
                      before the determination is made; and
                          ``(ii) standards for determining incompetency, 
                      including standards for determining the 
                      sufficiency of medical evidence and other 
                      evidence.
                    ``(H) Provisions for any other matter that the 
                President considers appropriate in connection with the 
                payment of an annuity in the case of a person referred 
                to in paragraph (1).
            ``(3) Legal effect of payment to guardian or fiduciary.--An 
        annuity paid to a person on behalf of an annuitant in accordance 
        with the regulations prescribed pursuant to paragraph (1) 
        discharges the obligation of the United States for

[[Page 110 STAT. 2579]]

        payment to the annuitant of the amount of the annuity so 
        paid.''.
SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS TO BE 
                        EFFECTIVE CONCURRENTLY WITH PAYMENT OF 
                        RETIRED PAY COST-OF-LIVING INCREASES.

    (a) Survivor Benefit Plan.--Section 1452(h) of title 10, United 
States Code, as amended by section 634, is amended by adding at the end 
the following new paragraph:
            ``(2) Coordination when payment of increase in retired pay 
        is delayed by law.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                when the initial payment of an increase in retired pay 
                under section 1401a of this title (or any other 
                provision of law) to a person is for a month that begins 
                later than the effective date of that increase by reason 
                of the application of subsection (b)(2)(B) of such 
                section (or section 631(b) of Public Law 104-106 (110 
                Stat. 364)), then the amount of the reduction in the 
                person's retired pay shall be effective on the date of 
                that initial payment of the increase in retired pay 
                rather than the effective date of the increase in 
                retired pay.
                    ``(B) Delay not to affect computation of annuity.--
                Subparagraph (A) may not be construed as delaying, for 
                purposes of determining the amount of a monthly annuity 
                under section 1451 of this title, the effective date of 
                an increase in a base amount under subsection (h) of 
                such section from the effective date of an increase in 
                retired pay under section 1401a of this title to the 
                date on which the initial payment of that increase in 
                retired pay is made in accordance with subsection 
                (b)(2)(B) of such section.''.

    (b) <<NOTE: Applicability. 10 USC 1452 note.>>  Effective Date.--The 
amendment made by subsection (a) shall apply with respect to retired pay 
payable for months beginning on or after the date of the enactment of 
this Act.
SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER SPOUSES' 
                        PROTECTION ACT.

    (a) Manner of Service of Process.--Subsection (b)(1)(A) of section 
1408 of title 10, United States Code, is amended by striking out 
``certified or registered mail, return receipt requested'' and inserting 
in lieu thereof ``facsimile or electronic transmission or by mail''.
    (b) Subsequent Court Order From Another State.--Subsection (d) of 
such section is amended by adding at the end the following new 
paragraph:
    ``(6)(A) The Secretary concerned may not accept service of a court 
order that is an out-of State modification, or comply with the 
provisions of such a court order, unless the court issuing that order 
has jurisdiction in the manner specified in subsection (c)(4) over both 
the member and the spouse or former spouse involved.
    ``(B) A court order shall be considered to be an out-of-State 
modification for purposes of this paragraph if the order--
            ``(i) modifies a previous court order under this section 
        upon which payments under this subsection are based; and
            ``(ii) is issued by a court of a State other than the State 
        of the court that issued the previous court order.''.

[[Page 110 STAT. 2580]]

SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
                        RETIRED PAY TO ENHANCE CIVIL SERVICE 
                        RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--(1) Subsection 
(c) of section 8332 of title 5, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(4) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has been 
effective service on the Secretary concerned for purposes of section 
1408 of title 10, the military service on which the retired pay is based 
may be credited as service for purposes of this subchapter only if the 
employee or Member authorizes the Director to deduct and withhold from 
the annuity
payable to the employee or Member under this subchapter an amount equal 
to the amount that, if the annuity payment was instead a payment of the 
employee's or Member's retired pay, would have been deducted and 
withheld and paid to the former spouse covered by the court order under 
such section 1408. The amount deducted and withheld under this paragraph 
shall be paid to that former spouse. The period of civil service 
employment by the employee or Member shall not be taken into 
consideration in determining the amount of the deductions and 
withholding or the amount of the payment to the former 
spouse. <<NOTE: Regulations.>>  The Director of the Office of Personnel 
Management shall prescribe regulations to carry out this paragraph.''.

    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2)'' and inserting in lieu thereof 
``Except as provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection (c) of 
section 8411 of title 5, United States Code, is amended by adding at the 
end the following new paragraph:
    ``(5) If, after January 1, 1997, an employee or Member waives 
retired pay that is subject to a court order for which there has been 
effective service on the Secretary concerned for purposes of section 
1408 of title 10, the military service on which the retired pay is based 
may be credited as service for purposes of this chapter only if the 
employee or Member authorizes the Director to deduct and withhold from 
the annuity payable to the employee or Member under this subchapter an 
amount equal to the amount that, if the annuity payment was instead a 
payment of the employee's or Member's retired pay, would have been 
deducted and withheld and paid to the former spouse covered by the court 
order under such section 1408. The amount deducted and withheld under 
this paragraph shall be paid to that former spouse. The period of civil 
service employment by the employee or Member shall not be taken into 
consideration in determining the amount of the deductions and 
withholding or the amount of the payment to the former spouse. 
The <<NOTE: Regulations.>>  Director of the Office of Personnel 
Management shall prescribe regulations to carry out this paragraph.''.

    (2) Paragraph (1) of such subsection is amended by striking ``Except 
as provided in paragraph (2) or (3)'' and inserting ``Except as provided 
in paragraphs (2), (3), and (5)''.
    (c) <<NOTE: 5 USC 8332 note.>>  Effective Date.--The amendments made 
by subsections (a) and (b) shall take effect on January 1, 1997.

[[Page 110 STAT. 2581]]

SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME 
                        WIDOWS.

    (a) Adjusted Annual Income Limitation Appliable to Eligibility for 
Income Supplement.--(1) Section 4 of Public Law 92-425 (10 U.S.C. 1448 
note) is amended--
            (A) in subsection (a)(3), by striking out ``$2,340'' and 
        inserting in lieu thereof ``the maximum annual rate of pension 
        in effect under section 1541(b) of title 38, United States 
        Code''; and
            (B) in the first sentence of subsection (b), by striking out 
        ``$2,340 a year'' and inserting in lieu thereof ``the maximum 
        annual rate of pension in effect under section 1541(b) of title 
        38, United States Code''.

    (2) Subsection (c) of such section is repealed.
    (b) Payments To Be Made by Secretary of Veterans Affairs.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(e)(1) Payment of annuities under this section shall be made by 
the Secretary of Veterans Affairs. If appropriate for administrative 
convenience (or otherwise determined appropriate by the Secretary of 
Veterans Affairs), that Secretary may combine a payment to any person 
for any month under this section with any other payment for that month 
under laws administered by the Secretary so as to provide that person 
with a single payment for that month.
    ``(2) The Secretary concerned shall annually transfer to the 
Secretary of Veterans Affairs such amounts as may be necessary for 
payments by the Secretary of Veterans Affairs under this section and for 
costs of the Secretary of Veterans Affairs in administering this 
section. Such transfers shall be made from amounts that would otherwise 
be used for payment of annuities by the Secretary concerned under this 
section. The authority to make such a transfer is in addition to any 
other authority of the Secretary concerned to transfer funds for a 
purpose other than the purpose for which the funds were originally made 
available. In the case of a transfer by the Secretary of a military 
department, the provisions of section 2215 of title 10, United States 
Code, do not apply.
    ``(3) <<NOTE: Notification.>>  The Secretary concerned shall 
promptly notify the Secretary of Veterans Affairs of any change in 
beneficiaries under this section.''.

    (c) Clarification of Continuing Eligiblity for Department of 
Veterans Affairs Pension.--Such section, as amended by subsection 
(a)(2), is further amended by inserting after subsection (b) the 
following new subsection (c):
    ``(c) The amount of an annuity payable under this section, although 
counted as income in determining the amount of any pension described in 
subsection (a)(2) of this section, shall not be considered to affect the 
eligiblity of the recipient of such annuity for such pension, even 
though, as a result of including the amount of the annuity as income, no 
amount of such pension is due.''.
    (d) <<NOTE: Applicability. 10 USC 1448 note.>>  Effective Date.--The 
amendments made by this section take effect on July 1, 1997, and apply 
with respect to payments of benefits for any month after June 1997.

[[Page 110 STAT. 2582]]

                        Subtitle E--Other Matters

SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED OR 
                        RETAINER PAY.

    (a) Allotments Authorized.--Section 701 of title 37, United States 
Code, is amended by striking out subsection (d) and inserting in lieu 
thereof the following new subsections:
    ``(d) <<NOTE: Regulations.>>  Under regulations prescribed by the 
Secretary of Defense, a member of the Army, Navy, Air Force, or Marine 
Corps and a contract surgeon of the Army, Navy, or Air Force may make 
allotments from the pay of the member or surgeon for the purpose of 
supporting relatives or for any other purpose that the Secretary 
considers proper. Such allotments may include a maximum of six 
allotments considered to be discretionary under such regulations. For a 
member or former member entitled to retired or retainer pay, a maximum 
of six discretionary allotments authorized during active military 
service may be continued into retired status, and new discretionary 
allotments may be authorized so long as the total number of 
discretionary allotments does not exceed six.

    ``(e) If an allotment made under subsection (d) is paid to the 
allottee before the disbursing officer receives a notice of 
discontinuance from the officer required by regulation to furnish the 
notice, the amount of the allotment shall be credited to the disbursing 
officer. If an allotment is erroneously paid because the officer 
required by regulation to so report failed to report the death of the 
allotter or any other fact that makes the allotment not payable, the 
amount of the payment not recovered from the allottee shall, if 
practicable, be collected by the Secretary concerned from the officer 
who failed to make the report.''.
    (b) <<NOTE: 37 USC 701 note.>>  Issuance of Regulations.--The 
Secretaries of the military departments shall prescribe regulations 
under subsection (d) of section 701 of title 37, United States Code, as 
added by subsection (a), not later than October 1, 1997.
SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN 
                        ADOPTIONS THROUGH PRIVATE PLACEMENTS.

    (a) Department of Defense.--Section 1052(g) of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking out ``State or local 
        government'' and all that follows through the period at the end 
        of the first sentence and inserting in lieu thereof ``qualified 
        adoption agency.''; and
            (2) by adding at the end the following new paragraph:
            ``(3) The term `qualified adoption agency' means any of the 
        following:
                    ``(A) A State or local government agency which has 
                responsibility under State or local law for child 
                placement through adoption.
                    ``(B) A nonprofit, voluntary adoption agency which 
                is authorized by State or local law to place children 
                for adoption.
                    ``(C) Any other source authorized by a State to 
                provide adoption placement if the adoption is supervised 
                by a court under State or local law.''.

    (b) Coast Guard.--Section 514(g) of title 14, United States Code, is 
amended--

[[Page 110 STAT. 2583]]

            (1) in paragraph (1), by striking out ``State or local 
        government'' and all that follows through the period at the end 
        of the first sentence and inserting in lieu thereof ``qualified 
        adoption agency.''; and
            (2) by adding at the end the following new paragraph:
            ``(3) The term `qualified adoption agency' means any of the 
        following:
                    ``(A) A State or local government agency which has 
                responsibility under State or local law for child 
                placement through adoption.
                    ``(B) A nonprofit, voluntary adoption agency which 
                is authorized by State or local law to place children 
                for adoption.
                    ``(C) Any other source authorized by a State to 
                provide adoption placement if the adoption is supervised 
                by a court under State or local law.''.
SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX 
                        PURPOSES FROM CERTAIN SEPARATION PAY.

    (a) In General.--Section 1174(h)(2) of title 10, United States Code, 
is amended by inserting before the period at the end of the first 
sentence the following: ``, less the amount of Federal income tax 
withheld from such pay (such withholding being at the flat withholding 
rate for Federal income tax withholding, as in effect pursuant to 
regulations prescribed under chapter 24 of the Internal Revenue Code of 
1986)''.
    (b) <<NOTE: Applicability. 10 USC 1174 note.>>  Effective Date.--The 
amendments made by this section shall take effect on October 1, 1996, 
and shall apply to payments of separation pay, severance pay, or 
readjustment pay that are made after September 30, 1996.
SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FURNISHING 
                        CLOTHING OR ALLOWANCES FOR ENLISTED 
                        NATIONAL GUARD TECHNICIANS.

    Section 418(c) of title 37, United States Code, is amended by 
striking out ``for which a uniform allowance is paid under section 415 
or 416 of this title'' and inserting in lieu thereof ``for which 
clothing is furnished or a uniform allowance is paid under this 
section''.
SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF 
                        BACKPAY TO CERTAIN PERSONS.

    Section 634 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 366) is amended--
            (1) in subsection (b)(1), by striking out ``Island of 
        Bataan'' and inserting in lieu thereof ``peninsula of Bataan or 
        island of Corregidor''; and
            (2) in subsection (c), by inserting after the first sentence 
        the following: ``For the purposes of this subsection, the 
        Secretary of War shall be deemed to have determined
that conditions in the Philippines during the specified period justified 
payment under applicable regulations of quarters and subsistence 
allowances at the maximum special rate for duty where emergency 
conditions existed.''.

[[Page 110 STAT. 2584]]

SEC. 656. <<NOTE: 50 USC app. 2005 note.>>  COMPENSATION FOR 
                        PERSONS AWARDED PRISONER OF WAR MEDAL WHO 
                        DID NOT PREVIOUSLY RECEIVE COMPENSATION AS 
                        A PRISONER OF WAR.

    (a) Authority To Make Payments.--The Secretary of the military 
department concerned shall make payments in the manner provided in 
section 6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) to (or on 
behalf of) any person described in subsection (b) who submits an 
application for such payment in accordance with subsection (d).
    (b) Eligible Persons.--This section applies with respect to a member 
or former member of the Armed Forces who--
            (1) has received the prisoner of war medal under section 
        1128 of title 10, United States Code; and
            (2) has not previously received a payment under section 6 of 
        the War Claims Act of 1948 (50 U.S.C. App. 2005) with respect to 
        the period of internment for which the person received the 
        prisoner of war medal.

    (c) Amount of Payment.--The amount of the payment to any person 
under this section shall be determined based upon the provisions of 
section 6 of the War Claims Act of 1948 that are applicable with respect 
to the period of time during which the internment occurred for which the 
person received the prisoner of war medal.
    (d) One-Year Period for Submission of Applications.--A payment may 
be made by reason of this section only in the case of a person who 
submits an application to the Secretary concerned for such payment 
during the one-year period beginning on the date of the enactment of 
this Act. Any such application shall be submitted in such form and 
manner as the Secretary may require.
SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND INTERNED BY 
                        NORTH VIETNAM.

    (a) Payment Authorized to Eligible Persons.--(1) Using amounts made 
available under subsection (g), the Secretary of Defense shall make a 
payment under this section to a person who demonstrates to the 
satisfaction of the Secretary of Defense that the person was captured 
and incarcerated by the Democratic Republic of Vietnam as a result of 
the participation by the person in operations conducted under OPLAN 34A 
or its predecessor.
    (2) Using amounts made available under subsection (g), the Secretary 
of Defense shall also make a payment under this section to a person who 
demonstrates to the satisfaction of the Secretary of Defense that the 
person--
            (A) served as a Vietnamese operative pursuant to 
        OPLAN 35;
            (B) was captured and incarcerated by North Vietnamese forces 
        as a result of the participation by the person in operations in 
        Laos or along the Lao-Vietnamese border pursuant to OPLAN 35;
            (C) remained in captivity after 1973 (or died in 
        captivity); and
            (D) has not previously received payment from the United 
        States for the period spent in captivity.

    (3) A payment may not be made under this section to, or with respect 
to, a person who the Secretary of Defense determines, based on the 
available evidence, served in the Peoples Army of Vietnam or provided 
active assistance to the Government of the

[[Page 110 STAT. 2585]]

Democratic Republic of Vietnam during the period from 1958 through 1975.
    (b) Effect of Death of Eligible Person.--In the case of a decedent 
who would have been eligible for a payment under this section if alive, 
the documentation required under subsection (a) may be provided by 
survivors of the decedent, and the payment under this section shall be 
made to survivors of the decedent in the following order:
            (1) To the surviving spouse.
            (2) If there is no surviving spouse, to the surviving 
        children (including natural children and adopted children) of 
        the decedent, in equal shares.

    (c) Amount Payable.--The amount payable to, or with respect to, a 
person under this section is $40,000. If a person can demonstrate to the 
Secretary of Defense that confinement or incarceration exceeded 20 
years, the Secretary may pay an additional $2,000 for each full year in 
excess of 20 (and a proportionate amount for a partial year), but the 
total amount paid to, or with respect to, a person under this section 
may not exceed $50,000.
    (d) Time Limitations.--(1) To be eligible for a payment under this 
section, a claimant must file a claim for such payment with the 
Secretary of Defense within 18 months of the effective date of the 
regulations implementing this section.
    (2) Not later than 18 months after receiving a claim for payment 
under this section, the Secretary shall determine the eligibility of the 
claimant for payment of the claim. Subject to subsection (f), if the 
Secretary determines that the claimant is eligible for the payment, the 
Secretary shall promptly pay the claim.
    (e) Regulations.--(1) The Secretary of Defense shall prescribe 
regulations to carry out this section. Such regulations shall include 
procedures by which persons may submit claims for payment under this 
section. Such regulations shall be prescribed not later than six months 
after the date of the enactment of this Act.
    (2) The Secretary of Defense may establish guidelines regarding what 
constitutes adequate documentation for determining whether a person 
satisfies the requirements specified in subsection (a) regarding 
eligibility for a payment under this section. Such guidelines shall be 
established in consultation with the heads of other agencies of the 
Government involved with OPLAN 34A or its predecessor or OPLAN 35.
    (f) Limitation on Disbursement.--(1) The actual disbursement of a 
payment under this section may be made only
to the person who is eligible for the payment under subsection (a) or 
(b) and only--
            (A) upon the appearance of that person, in person, at any 
        designated disbursement office in the United States or its 
        territories; or
            (B) at such other location or in such other manner as that 
        person may request in writing.

    (2) In the case of a claim approved for payment but not disbursed as 
a result of operation of paragraph (1), the Secretary of Defense shall 
hold the funds in trust for the person in an interest bearing account 
until such time as the person makes an election under such paragraph.
    (g) Funding.--To the extent provided in advance for this section in 
appropriations Acts, of amounts authorized to be appropriated

[[Page 110 STAT. 2586]]

under section 301(24) for this purpose, $20,000,000 shall be available 
until expended for payments under this section.
    (h) Payment in Full Satisfaction of Claims Against the United 
States.--The acceptance of payment by, or with respect to, a person 
under this section shall be in full satisfaction of all claims by or on 
behalf of that individual against the United States arising from 
operations under OPLAN 34A or its predecessor or OPLAN 35.
    (i) Attorney Fees.--Notwithstanding any contract, the representative 
of a person may not receive, for services rendered in connection with 
the claim of, or with respect to, a person under this section, more than 
10 percent of a payment made under this section on that claim.
    (j) No Right to Judicial Review.--All determinations by the 
Secretary of Defense pursuant to this section are final and conclusive, 
notwithstanding any other provision of law. Claimants under this section 
have no right to judicial review, and such review is specifically 
precluded.
    (k) Reports to Congress.--(1) Not later than 24 months after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report on the payment of claims under this section.
    (2) After the submission of the report under paragraph (1), the 
Secretary shall periodically submit to Congress a report on the status 
of payment of claims under this section.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Preventive health care screening for colon and prostate 
                    cancer.
Sec. 702. Implementation of requirement for Selected Reserve dental 
                    insurance plan.
Sec. 703. Dental insurance plan for military retirees and unremarried 
                    surviving spouses and certain other dependents of 
                    military retirees.
Sec. 704. Plan for health care coverage for children with medical 
                    conditions caused by parental exposure to chemical 
                    munitions while serving as members of the Armed 
                    Forces.

                       Subtitle B--TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.
Sec. 712. Improved information exchange between military treatment 
                    facilities and TRICARE program contractors.
Sec. 713. Plans for medicare subvention demonstration programs.

           Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Definitions.
Sec. 722. Inclusion of designated providers in uniformed services health 
                    care 
                    delivery system.
Sec. 723. Provision of uniform benefit by designated providers.
Sec. 724. Enrollment of covered beneficiaries.
Sec. 725. Application of CHAMPUS payment rules.
Sec. 726. Payments for services.
Sec. 727. Repeal of superseded authorities.

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

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically 
                    necessary treatment in connection with certain 
                    clinical trials.
Sec. 732. Exception to maximum allowable payments to individual health-
                    care 
                    providers under CHAMPUS.
Sec. 733. Codification of annual authority to credit CHAMPUS refunds to 
                    current year appropriation.

[[Page 110 STAT. 2587]]

Sec. 734. Exceptions to requirements regarding obtaining 
                    nonavailability-of-health-care statements.
Sec. 735. Enhancement of third-party collection and secondary payer 
                    authorities under CHAMPUS.

                        Subtitle E--Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed 
                    Forces Health Professions Scholarship and Financial 
                    Assistance program and Uniformed Services University 
                    of the Health Sciences.
Sec. 742. External peer review for defense health program extramural 
                    medical 
                    research involving human subjects.
Sec. 743. Independent research regarding Gulf War syndrome.
Sec. 744. Comptroller General review of health care activities of 
                    Department of 
                    Defense relating to Gulf War illnesses.
Sec. 745. Report regarding specialized treatment facility program.
Sec. 746. Study of means of ensuring uniformity in provision of medical 
                    and dental care for members of reserve components.
Sec. 747. Sense of Congress regarding tax treatment of Armed Forces 
                    Health Professions Scholarship and Financial 
                    Assistance program.

                    Subtitle A--Health Care Services

SEC. 701. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND PROSTATE 
                        CANCER.

    (a) Members and Former Members.--(1) Section 1074d of title 10, 
United States Code, is amended--
            (A) in subsection (a)--
                    (i) by inserting ``(1)'' before ``Female''; and
                    (ii) by adding at the end the following new 
                paragraph:

    ``(2) Male members and former members of the uniformed services 
entitled to medical care under section 1074 or 1074a of this title shall 
also be entitled to preventive health care screening for colon or 
prostate cancer at such intervals and using such screening methods as 
the administering Secretaries consider appropriate.''; and
            (B) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(8) Colon cancer screening, at the intervals and using the 
        screening methods prescribed under subsection (a)(2).''.

    (2)(A) The heading of such section is amended to read as follows:
``Sec. 1074d. Certain primary and preventive health care services

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as follows:

``1074d. Certain primary and preventive health care services.''.

    (b) Dependents.--(1) Section 1077(a) of such title is amended by 
adding at the end the following new paragraph:
            ``(14) Preventive health care screening for colon or 
        prostate cancer, at the intervals and using the screening 
        methods prescribed under section 1074d(a)(2) of this title.''.

    (2) Section 1079(a)(2) of such title is amended--
            (A) in the matter preceding subparagraph (A), by inserting 
        ``the schedule and method of colon and prostate cancer 
        screenings,'' after ``pap smears and mammograms,''; and
            (B) in subparagraph (B), by inserting ``or colon and 
        prostate cancer screenings'' after ``pap smears and 
        mammograms''.

[[Page 110 STAT. 2588]]

SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE 
                        DENTAL INSURANCE PLAN.

    (a) Implementation by Contract.--Subsection (a) of section 1076b of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a) Authority To Establish 
        Plan.--'';
            (2) by designating the third sentence as paragraph 
        (3); and
            (3) by inserting after paragraph (1), as designated by 
        paragraph (1) of this subsection, the following new paragraph:

    ``(2) The Secretary shall provide benefits under the plan through 
one or more contracts awarded after full and open competition.''.
    (b) <<NOTE: Procedures.>> Collection of Premiums of Members Not 
Receiving Basic Pay.--Subsection (b)(3) of such section is amended by 
adding at the end the following: ``In the case of a member who does not 
receive basic pay, the Secretary of Defense shall establish procedures 
for the collection of the member's share of the premium for coverage.''.

    (c) Schedule for Implementation.--Section 705(b) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 373; 10 U.S.C. 1076b note) is amended--
            (1) in the first sentence, by striking out ``October 1, 
        1996'' and inserting in lieu thereof ``October 1, 1997''; and
            (2) by striking out ``fiscal year 1996'' both places it 
        appears and inserting in lieu thereof ``fiscal years 1996 and 
        1997''.
SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND 
                        UNREMARRIED SURVIVING SPOUSES AND CERTAIN 
                        OTHER DEPENDENTS OF MILITARY RETIREES.

    (a) Establishment of Dental Plan.--(1) Chapter 55 of title 10, 
United States Code, is amended by inserting after section 1076b the 
following new section:
 ``Sec. 1076c. Dental insurance plan: certain retirees and their 
                      surviving spouses and other dependents

    ``(a) Requirement for Plan.--The Secretary of Defense shall 
establish a dental insurance plan for military retirees, certain 
unremarried surviving spouses, and dependents in accordance with this 
section.
    ``(b) Persons Eligible for Plan.--The following persons are eligible 
to enroll in the dental insurance plan established under subsection (a):
            ``(1) Members of the Armed Forces who are entitled to 
        retired pay.
            ``(2) Members of the Retired Reserve who would be entitled 
        to retired pay under chapter 1223 of this title but for being 
        under 60 years of age.
            ``(3) Eligible dependents of a member described in paragraph 
        (1) or (2) who are covered by the enrollment of the member in 
        the plan.
            ``(4) The unremarried surviving spouse and eligible child 
        dependents of a deceased member--
                    ``(A) who dies while in a status described in 
                paragraph (1) or (2); or
                    ``(B) who is described in section 1448(d)(1) of this 
                title.

[[Page 110 STAT. 2589]]

    ``(c) Premiums.--(1) A member enrolled in the dental insurance plan 
established under subsection (a) shall pay the premiums charged for the 
insurance coverage.
    ``(2) The amount of the premiums payable by a member entitled to 
retired pay shall be deducted and withheld from the retired pay and 
shall be disbursed to pay the premiums. The regulations prescribed under 
subsection (h) shall specify the procedures for payment of the premiums 
by other enrolled members and by enrolled surviving spouses.
    ``(d) Benefits Available Under the Plan.--The dental insurance plan 
established under subsection (a) shall provide benefits for basic dental 
care and treatment, including diagnostic services, preventative 
services, basic restorative services (including endodontics), surgical 
services, and emergency services.
    ``(e) Coverage.--(1) The Secretary shall prescribe a minimum 
required period for enrollment by a member or surviving spouse in the 
dental insurance plan established under subsection (a).
    ``(2) The dental insurance plan shall provide for voluntary 
enrollment of participants and shall authorize a member or eligible 
unremarried surviving spouse to enroll for self only or for self and 
eligible dependents.
    ``(f) Termination of Enrollment.--The Secretary shall terminate the 
enrollment of any enrollee, and any eligible dependents of the enrollee 
covered by the enrollment, in the dental insurance plan established 
under subsection (a) upon the occurrence of the following:
            ``(1) In the case of an enrollment under subsection (b)(1), 
        termination of the member's entitlement to retired pay.
            ``(2) In the case of an enrollment under subsection (b)(2), 
        termination of the member's status as a member of the Retired 
        Reserve.
            ``(3) In the case of an enrollment under subsection (b)(4), 
        remarriage of the surviving spouse.

    ``(g) Continuation of Dependents' Enrollment Upon Death of 
Enrollee.--Coverage of a dependent in the dental insurance plan 
established under subsection (a) under an enrollment of a member or a 
surviving spouse who dies during the period of enrollment shall continue 
until the end of that period and may be renewed by (or for) the 
dependent, so long as the premium paid is sufficient to cover 
continuation of the dependent's enrollment. The Secretary may terminate 
coverage of the dependent when the premiums paid are no longer 
sufficient to cover continuation of the enrollment. The Secretary shall 
prescribe in regulations under subsection (h) the parties responsible 
for paying the remaining premiums due on the enrollment and the manner 
for collection of the premiums.
    ``(h) Regulations.--The dental insurance plan established under 
subsection (a) shall be administered under regulations prescribed by the 
Secretary of Defense, in consultation with the Secretary of 
Transportation.
    ``(i) Definitions.--In this section:
            ``(1) The term `eligible dependent' means a dependent 
        described in subparagraph (A), (D), or (I) of section 1072(2) of 
        this title.
            ``(2) The term `eligible child dependent' means a dependent 
        described in subparagraph (D) or (I) of section 1072(2) of this 
        title.
            ``(3) The term `retired pay' includes retainer pay.''.

[[Page 110 STAT. 2590]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076b the 
following new item:

``1076c. Dental insurance plan: certain retirees and their surviving 
           spouses and other dependents.''.

    (b) <<NOTE: 10 USC 1076c note.>>  Implementation.--Beginning not 
later than October 1, 1997, the Secretary of Defense shall--
            (1) offer members of the Armed Forces and other persons 
        described in subsection (b) of section 1076c of title 10, United 
        States Code (as added by subsection (a)(1) of this section), the 
        opportunity to enroll in the dental insurance plan required 
        under that section; and
            (2) begin to provide benefits under the plan.
SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH MEDICAL 
                        CONDITIONS CAUSED BY PARENTAL EXPOSURE TO 
                        CHEMICAL MUNITIONS WHILE SERVING AS 
                        MEMBERS OF THE ARMED FORCES.

    (a) Plan Required.--The Secretary of Defense, in coordination with 
the Secretary of Veterans Affairs, shall develop a plan for ensuring the 
provision of medical care to any natural child of a member of the Armed 
Forces (including former members and members discharged or otherwise 
separated from active duty) who has a congenital defect or catastrophic 
illness, proven to a reasonable degree of scientific certainty on the 
basis of scientific research to have resulted from exposure of the 
member to a chemical warfare agent or other hazardous material to which 
the member was exposed during active military service.
    (b) Submission to Congress.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit the 
plan developed under subsection (a) to Congress.
    (c) <<NOTE: Regulations.>>  Definitions of Congenital Defect and 
Catastrophic Illness.--The Secretary of Defense shall prescribe in 
regulations a definition of the terms ``congenital defect'' and 
``catastrophic illness'' for the purposes of this section.

                       Subtitle B--TRICARE Program

SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME 
                        ENROLLEES.

    Section 1079(h)(4) of title 10, United States Code, is amended in 
the second sentence by striking out ``emergency''.
SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY TREATMENT 
                        FACILITIES AND TRICARE PROGRAM 
                        CONTRACTORS.

    (a) Uniform Interfaces.--The Secretary of Defense shall ensure that 
the automated medical information system being developed by the 
Department of Defense (known as the Composite Health Care System) 
provides for uniform interfaces between information systems of military 
treatment facilities and private contractors under managed care programs 
of the TRICARE program. The uniform interface shall provide for a full 
electronic two-way exchange of health care information between the 
military treatment facilities and contractor information systems, 
including enrollment information, information regarding eligibility 
determinations, provider net

[[Page 110 STAT. 2591]]

work information, appointment information, and information regarding the 
existence of third-party payers.
    (b) Amendment of Existing Contracts.--To assure a single consistent 
source of information throughout the health care delivery system of the 
uniformed services, the Secretary of Defense shall amend each TRICARE 
program contract, with the consent of the TRICARE program contractor and 
notwithstanding any requirement for competition, to require the 
contractor--
            (1) to use software furnished under the Composite Health 
        Care System to record military treatment facility provider 
        appointments; and
            (2) to record TRICARE program enrollment through direct use 
        of the Composite Health Care System software or through the 
        uniform two-way interface between the contractor and military 
        treatment facilities systems, where applicable.

    (c) Definition of TRICARE Program.--For purposes of this section, 
the term ``TRICARE program'' means the managed health care program that 
is established by the Secretary of Defense under the authority of 
chapter 55 of title 10, United States Code, principally section 1097 of 
such title, and includes the competitive selection of contractors to 
financially underwrite the delivery of health care services under the 
Civilian Health and Medical Program of the Uniformed Services.
SEC. 713. PLANS <<NOTE: Reports.>> FOR MEDICARE SUBVENTION 
                        DEMONSTRATION 
                        PROGRAMS.

    (a) Program for Enrollment in TRICARE Managed Care Option.--Not 
later than September 6, 1996, the Secretary of Defense and the Secretary 
of Health and Human Services shall jointly submit to Congress and the 
President a report containing a specific plan (including the 
recommendations of the Secretaries required under subsection (b)) 
regarding the establishment of a demonstration program under which--
            (1) covered beneficiaries under chapter 55 of title 10, 
        United States Code, who are also entitled to benefits under part 
        A of the medicare program are permitted to enroll in the managed 
        care option of the TRICARE program; and
            (2) the Secretary of Health and Human Services reimburses 
        the Secretary of Defense from the Medicare program on a 
        capitated basis for the costs of providing health care services 
        to military retirees who enroll.

    (b) Specific Elements of Report.--The report shall include the 
following:
            (1) The number of covered beneficiaries described in 
        subsection (a) who are projected to participate in the 
        demonstration program and the minimum number of such 
        participants necessary to conduct the demonstration program 
        effectively.
            (2) A plan for notifying such covered beneficiaries of their 
        eligibility for enrollment in the demonstration program and for 
        any other matters connected with enrollment.
            (3) A recommendation for the duration of the demonstration 
        program.
            (4) A recommendation for the geographic regions in which the 
        demonstration program should be conducted.
            (5) The appropriate level of capitated reimbursement, and a 
        schedule for such reimbursement, from the Medicare program

[[Page 110 STAT. 2592]]

        to the Department of Defense for health care services provided 
        enrollees in the demonstration program.
            (6) An estimate of the amounts that, in the absence of the 
        demonstration program, would be required to be allocated by the 
        Department of Defense for the provision of health care services 
        to covered beneficiaries described in subsection (a) who reside 
        in the regions in which the demonstration program is proposed to 
        be conducted.
            (7) An assessment of revisions to the allocation estimated 
        under paragraph (6) that would result from the conduct of the 
        demonstration program in such regions.
            (8) An estimate of the cost to the Department of Defense and 
        to the Medicare program of providing health care services to 
        covered beneficiaries described in subsection (a) who enroll in 
        the demonstration program.
            (9) An assessment of the likelihood of cost shifting among 
        the Department of Defense and the Medicare program under the 
        demonstration program.
            (10) A proposal for mechanisms for reconciling and 
        reimbursing any improper payments among the Department of 
        Defense and the Medicare program under the demonstration 
        program.
            (11) A methodology for evaluating the demonstration program, 
        including cost analyses.
            (12) As assessment of the extent to which the TRICARE 
        program is prepared to meet requirements of the Medicare program 
        for purposes of the demonstration program and the provisions of 
        law or regulation that would have to be waived in order to 
        facilitate the carrying out of the demonstration program.
            (13) An assessment of the impact of the demonstration 
        program on military readiness.
            (14) Contingency plans for the provision of health care 
        services under the demonstration program in the event of the 
        mobilization of health care personnel.
            (15) A recommendation of the reports that the Department of 
        Defense and the Department of Health and Human Services should 
        submit to Congress describing the conduct of the demonstration 
        program.

    (c) Program for Enrollment in TRICARE Fee-For-Service Option.--Not 
later than January 3, 1997, the Secretary of Defense and the Secretary 
of Health and Human Services shall jointly submit to Congress and the 
President a report on the feasibility and advisability of expanding the 
demonstration program referred to in subsection (a) so as to provide the 
Department of Defense with reimbursement from the Medicare program on a 
fee-for-service basis for health care services provided covered 
beneficiaries described in subsection (a) who enroll in the 
demonstration program. The report shall include a proposal for the 
expansion of the program if the expansion is determined to be advisable.

 Subtitle C-- <<NOTE: 10 USC 1073 note.>> Uniformed Services Treatment 
Facilities

SEC. 721. DEFINITIONS.

    In this subtitle:

[[Page 110 STAT. 2593]]

            (1) The term ``administering Secretaries'' means the 
        Secretary of Defense, the Secretary of Transportation, and the 
        Secretary of Health and Human Services.
            (2) The term ``agreement'' means the agreement required 
        under section 722(b) between the Secretary of Defense and a 
        designated provider.
            (3) The term ``capitation payment'' means an actuarially 
        sound payment for a defined set of health care services that is 
        established on a per enrollee per month basis.
            (4) The term ``covered beneficiary'' means a beneficiary 
        under chapter 55 of title 10, United States Code, other than a 
        beneficiary under section 1074(a) of such title.
            (5) The term ``designated provider'' means a public or 
        nonprofit private entity that was a transferee of a Public 
        Health Service hospital or other station under section 987 of 
        the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35; 
        42 U.S.C. 248b) and that, before the date of the enactment of 
        this Act, was deemed to be a facility of the uniformed services 
        for the purposes of chapter 55 of title 10, United States Code. 
        The term includes any legal successor in interest of the 
        transferee.
            (6) The term ``enrollee'' means a covered beneficiary who 
        enrolls with a designated provider.
            (7) The term ``health care services'' means the health care 
        services provided under the health plan known as the ``TRICARE 
        PRIME'' option under the TRICARE program.
            (8) The term ``Secretary'' means the Secretary of Defense.
            (9) The term ``TRICARE program'' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of chapter 55 of title 10, United States 
        Code, principally section 1097 of such title, and includes the 
        competitive selection of contractors to financially underwrite 
        the delivery of health care services under the Civilian Health 
        and Medical Program of the Uniformed Services.
SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES 
                        HEALTH CARE DELIVERY SYSTEM.

    (a) Inclusion in System.--The health care delivery system of the 
uniformed services shall include the designated providers.
    (b) Agreements to Provide Managed Health Care 
Services.--(1) After consultation with the other administering 
Secretaries, the Secretary of Defense shall negotiate and enter into an 
agreement with each designated provider under which the designated 
provider will provide health care services in or through managed care 
plans to covered beneficiaries who enroll with the designated provider.
    (2) The agreement shall be entered into on a sole source basis. The 
Federal Acquisition Regulation, except for those requirements regarding 
competition, issued pursuant to section 25(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements 
as acquisitions of commercial items.
    (3) The implementation of an agreement is subject to availability of 
funds for such purpose.
    (c) Effective Date of Agreements.--(1) Unless an earlier effective 
date is agreed upon by the Secretary and the designated provider, the 
agreement shall take effect upon the later of the following:

[[Page 110 STAT. 2594]]

            (A) The date on which a managed care support contract under 
        the TRICARE program is implemented in the service area of the 
        designated provider.
            (B) October 1, 1997.

    (2) Notwithstanding paragraph (1), the designated provider whose 
service area includes Seattle, Washington, shall implement its agreement 
as soon as the agreement permits.
    (d) Temporary Continuation of Existing Participation Agreements.--
The Secretary shall extend the participation agreement of a designated 
provider in effect immediately before the date of the enactment of this 
Act under section 718(c) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c) until the 
agreement required by this section takes effect under subsection (c).
    (e) Service Area.--The Secretary may not reduce the size of the 
service area of a designated provider below the size of the service area 
in effect as of September 30, 1996.
    (f) Compliance With Administrative Requirements.--(1) Unless 
otherwise agreed upon by the Secretary and a designated provider, the 
designated provider shall comply with necessary and appropriate 
administrative requirements established by the Secretary for other 
providers of health care services and requirements established by the 
Secretary of Health and Human Services for risk-sharing contractors 
under section 1876 of the Social Security Act (42 U.S.C. 1395mm). The 
Secretary and the designated provider shall determine and apply only 
such administrative requirements as are minimally necessary and 
appropriate. A designated provider shall not be required to comply with 
a law or regulation of a State government requiring licensure as a 
health insurer or health maintenance organization.
    (2) A designated provider may not contract out more than five 
percent of its primary care enrollment without the approval of the 
Secretary, except in the case of primary care contracts between a 
designated provider and a primary care contractor in force on the date 
of the enactment of this Act.
SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED 
                        PROVIDERS.

    (a) Uniform Benefit Required.--A designated provider shall offer to 
enrollees the health benefit option prescribed and implemented by the 
Secretary under section 731 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 1073 note), 
including accompanying cost-sharing requirements.
    (b) Time for Implementation of Benefit.--A designated provider shall 
offer the health benefit option described in subsection (a) to enrollees 
upon the later of the following:
            (1) The date on which health care services within the health 
        care delivery system of the uniformed services are rendered 
        through the TRICARE program in the region in which the 
        designated provider operates.
            (2) October 1, 1997.

    (c) Adjustments.--The Secretary may establish a later date under 
subsection (b)(2) or prescribe reduced cost-sharing requirements for 
enrollees.

[[Page 110 STAT. 2595]]

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

    (a) Fiscal Year 1997 Limitation.--(1) During fiscal year 1997, the 
number of covered beneficiaries who are enrolled in managed care plans 
offered by designated providers may not exceed the number of such 
enrollees as of October 1, 1995.
    (2) The Secretary may waive the limitation under paragraph (1) if 
the Secretary determines that additional enrollment authority for a 
designated provider is required to accommodate covered beneficiaries who 
are dependents of members of the uniformed services entitled to health 
care under section 1074(a) of title 10, United States Code.
    (b) Permanent Limitation.--For each fiscal year beginning after 
September 30, 1997, the number of enrollees in managed care plans 
offered by designated providers may not exceed 110 percent of the number 
of such enrollees as of the first day of the immediately preceding 
fiscal year. The Secretary may waive this limitation as provided in 
subsection (a)(2).
    (c) Retention of Current Enrollees.--An enrollee in the managed care 
plan of a designated provider as of September 30, 1997, or such earlier 
date as the designated provider and the Secretary may agree upon, shall 
continue receiving services from the designated provider pursuant to the 
agreement entered into under section 722 unless the enrollee disenrolls 
from the designated provider. Except as provided in subsection (e), the 
administering Secretaries may not disenroll such an enrollee unless the 
disenrollment is agreed to by the Secretary and the designated provider.
    (d) Additional Enrollment Authority.--Other covered beneficiaries 
may also receive health care services from a designated provider, except 
that the designated provider may market such services to, and enroll, 
only those covered beneficiaries who--
            (1) do not have other primary health insurance coverage 
        (other than Medicare coverage) covering basic primary care and 
        inpatient and outpatient services; or
            (2) are enrolled in the direct care system under the TRICARE 
        program, regardless of whether the covered beneficiaries were 
        users of the health care delivery system of the uniformed 
        services in prior years.

    (e) Special Rule for Medicare-Eligible Beneficiaries.--If a covered 
beneficiary who desires to enroll in the managed care program of a 
designated provider is also entitled to hospital insurance benefits 
under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c 
et seq.), the covered beneficiary shall elect whether to receive health 
care services as an enrollee or under part A of title XVIII of the 
Social Security Act. The Secretary may disenroll an enrollee who 
subsequently violates the election made under this subsection and 
receives benefits under part A of title XVIII of the Social Security 
Act.
    (f) Information Regarding Eligible Covered Beneficiaries.--The 
Secretary shall provide, in a timely manner, a designated provider with 
an accurate list of covered beneficiaries within the marketing area of 
the designated provider to whom the designated provider may offer 
enrollment.

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

    (a) Application of Payment Rules.--Subject to subsection (b), the 
Secretary shall require a private facility or
health care

[[Page 110 STAT. 2596]]

provider that is a health care provider under the Civilian Health and 
Medical Program of the Uniformed Services to apply the payment rules 
described in section 1074(c) of title 10, United States Code, in 
imposing charges for health care that the private facility or provider 
provides to enrollees of a designated provider.

    (b) Authorized Adjustments.--The payment rules imposed under 
subsection (a) shall be subject to such modifications as the Secretary 
considers appropriate. The Secretary may authorize a lower rate than the 
maximum rate that would otherwise apply under subsection (a) if the 
lower rate is agreed to by the designated provider and the private 
facility or health care provider.
    (c) Regulations.--The Secretary shall prescribe regulations to 
implement this section after consultation with the other administering 
Secretaries.
    (d) Conforming Amendment.--Section 1074 of title 10, United States 
Code, is amended by striking out subsection (d).

SEC. 726. PAYMENTS FOR SERVICES.

    (a) Form of Payment.--Unless otherwise agreed to by the Secretary 
and a designated provider, the form of payment for health care services 
provided by a designated provider shall be on a full risk capitation 
payment basis. The capitation payments shall be negotiated and agreed 
upon by the Secretary and the designated provider. In addition to such 
other factors as the parties may agree to apply, the capitation payments 
shall be based on the utilization experience of enrollees and 
competitive market rates for equivalent health care services for a 
comparable population to such enrollees in the area in which the 
designated provider is located.
    (b) Limitation on Total Payments.--Total capitation payments for 
health care services to a designated provider shall not exceed an amount 
equal to the cost that would have been incurred by the Government if the 
enrollees had received such health care services through a military 
treatment facility, the TRICARE program, or the Medicare program, as the 
case may be.
    (c) Establishment of Payment Rates on Annual Basis.--The Secretary 
and a designated provider shall establish capitation payments on an 
annual basis, subject to periodic review for actuarial soundness and to 
adjustment for any adverse or favorable selection reasonably anticipated 
to result from the design of the program under this subtitle.
    (d) Alternative Basis for Calculating Payments.--After September 30, 
1999, the Secretary and a designated provider may mutually agree upon a 
new basis for calculating capitation payments.

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Repeals.--The following provisions of law are repealed:
            (1) Section 911 of the Military Construction Authorization 
        Act, 1982 (42 U.S.C. 248c).
            (2) Section 1252 of the Department of Defense Authorization 
        Act, 1984 (42 U.S.C. 248d).
            (3) Section 718(c) of the National Defense Authorization Act 
        for Fiscal Year 1991 (Public Law 101-510; 42 U.S.C. 248c note).
            (4) Section 726 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 42 U.S.C. 248c note).

[[Page 110 STAT. 2597]]

    (b) Effective Date.--The amendments made by paragraphs (1), (2), and 
(3) of subsection (a) shall take effect on October 1, 1997.

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

SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING 
                        NONMEDICALLY NECESSARY TREATMENT IN 
                        CONNECTION WITH CERTAIN CLINICAL TRIALS.

    (a) Waiver Authority.--Paragraph (13) of section 1079(a) of title 
10, United States Code, is amended--
            (1) by striking out ``any service'' and inserting in lieu 
        thereof ``Any service'';
            (2) by striking out the semicolon at the end and inserting 
        in lieu thereof a period; and
            (3) by adding at the end the following: ``Pursuant to an 
        agreement with the Secretary of Health and Human Services and 
        under such regulations as the Secretary of Defense may 
        prescribe, the Secretary of Defense may waive the operation of 
        this paragraph in connection with clinical trials sponsored or 
        approved by the National Institutes of Health if the Secretary 
        of Defense determines that such a waiver will promote access by 
        covered beneficiaries to promising new treatments and contribute 
        to the development of such treatments.''.

    (b) Clerical Amendments.--Such section is further amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``except that--'' and inserting in lieu thereof ``except as 
        follows:'';
            (2) by capitalizing the first letter of the first word of 
        each of paragraphs (1) through (17);
            (3) by striking out the semicolon at the end of each of 
        paragraphs (1) through (12) and paragraphs (14) and (15) and 
        inserting in lieu thereof a period; and
            (4) in paragraph (16), by striking out ``; and'' and 
        inserting in lieu thereof a period.
SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL 
                        HEALTH-CARE PROVIDERS UNDER CHAMPUS.

    Section 1079(h) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph:

    ``(5) In addition to the authority provided under paragraph (4), the 
Secretary may authorize the commander of a facility of the uniformed 
services, the lead agent (if other than the commander), and the health 
care contractor to modify the payment limitations under paragraph (1) 
for certain health care providers when necessary to ensure both the 
availability of certain services for covered beneficiaries and lower 
costs than would otherwise be incurred to provide the services.''.
SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT CHAMPUS 
                        REFUNDS TO CURRENT YEAR APPROPRIATION.

    (a) Credits to CHAMPUS Accounts.--(1) Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1079 the following 
new section:

[[Page 110 STAT. 2598]]

``Sec. 1079a. CHAMPUS: treatment of refunds and other amounts 
                      collected

    ``All refunds and other amounts collected in the administration of 
the Civilian Health and Medical Program of the Uniformed Services shall 
be credited to the appropriation available for that program for the 
fiscal year in which the refund or amount is collected.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1079 the 
following new item:

``1079a. CHAMPUS: treatment of refunds and other amounts collected.''.

    (b) Conforming Repeal.--Section 8094 of the Department of Defense 
Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 671), is 
repealed.
SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING 
                        NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

    (a) Reference to Inpatient Medical Care.--(1) Section 1080(a) of 
title 10, United States Code, is amended by inserting ``inpatient'' 
before ``medical care'' in the first sentence.
    (2) Section 1086(e) of such title is amended in the first sentence 
by striking out ``benefits'' and inserting in lieu thereof ``inpatient 
medical care''.
    (b) Waivers and Exceptions to Requirements.--(1) Section 1080 of 
such title is amended by adding at the end the following new subsection:
    ``(c) Waivers and Exceptions to Requirements.--(1) A covered 
beneficiary enrolled in a managed care plan offered pursuant to any 
contract or agreement under this chapter for the provision of health 
care services shall not be required to obtain a nonavailability-of-
health-care statement as a condition for the receipt of health care.
    ``(2) The Secretary of Defense may waive the requirement to obtain 
nonavailability-of-health-care statements following an evaluation of the 
effectiveness of such statements in optimizing the use of facilities of 
the uniformed services.''.
    (2) Section 1086(e) of such title is amended in the last sentence by 
striking out ``section 1080(b)'' and inserting in lieu thereof 
``subsections (b) and (c) of section 1080''.
    (c) Conforming Amendments.--Section 1080(b) of such title is 
amended--
            (1) by striking out ``Nonavailability of Health Care 
        Statements'' and inserting in lieu thereof ``Nonavailability-of-
        Health-Care Statements''; and
            (2) by striking out ``nonavailability of health care 
        statement'' and inserting in lieu thereof ``nonavailability-of-
        health-care statement''.
SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND SECONDARY 
                        PAYER AUTHORITIES UNDER CHAMPUS.

    (a) Retention and Use by Treatment Facilities of Amounts 
Collected.--Subsection (g)(1) of section 1095 of title 10, United States 
Code, is amended by inserting ``or through'' after ``provided at''.
    (b) Expansion of Definition of Third-Party Payer.--Subsection (h) of 
such section is amended--

[[Page 110 STAT. 2599]]

            (1) in the first sentence of paragraph (1), by inserting 
        ``and a workers' compensation program or plan'' before the 
        period; and
            (2) in paragraph (2)--
                    (A) by striking out ``organization and'' and 
                inserting in lieu thereof a ``organization,''; and
                    (B) by inserting before the period at the end the 
                following: ``, and a personal injury protection plan or 
                medical payments benefit plan for personal injuries 
                resulting from the operation of a motor vehicle''.

    (c) Applicability of Secondary Payer Requirement.--Section 
1079(j)(1) of such title is amended by inserting after ``or health 
plan'' the following: ``, including any plan offered by a third-party 
payer (as defined in section 1095(h)(1) of this title),''.

                        Subtitle E--Other Matters

SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION UNDER 
                        ARMED FORCES HEALTH PROFESSIONS 
                        SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                        PROGRAM AND 
                        UNIFORMED SERVICES UNIVERSITY OF THE 
                        HEALTH SCIENCES.

    (a) Armed Forces Health Professions Scholarship and Financial 
Assistance Program.--Subsection (e) of section 2123 of title 10, United 
States Code, is amended to read as follows:
    ``(e)(1) A member of the program who is relieved of the member's 
active duty obligation under this subchapter before the completion of 
that active duty obligation may be given, with or without the consent of 
the member, any of the following alternative obligations, as determined 
by the Secretary of the military department concerned:
            ``(A) A service obligation in another armed force for a 
        period of time not less than the member's remaining active duty 
        service obligation.
            ``(B) A service obligation in a component of the Selected 
        Reserve for a period not less than twice as long as the member's 
        remaining active duty service obligation.
            ``(C) Repayment to the Secretary of Defense of a percentage 
        of the total cost incurred by the Secretary under this 
        subchapter on behalf of the member equal to the percentage of 
        the member's total active duty service obligation being 
        relieved, plus interest.

    ``(2) In addition to the alternative obligations specified in 
paragraph (1), if the member is relieved of an active duty obligation by 
reason of the separation of the member because of a physical disability, 
the Secretary of the military department concerned may give the member a 
service obligation as a civilian employee employed as a health care 
professional in a facility of the uniformed services for a period of 
time equal to the member's remaining active duty service obligation.
    ``(3) <<NOTE: Regulations.>> The Secretary of Defense shall 
prescribe regulations describing the manner in which an alternative 
obligation may be given under this subsection.''.

    (b) Uniformed Services University of the Health Sciences.--Section 
2114 of title 10, United States Code is amended by adding at the end the 
following new subsection:

[[Page 110 STAT. 2600]]

    ``(h) A graduate of the University who is relieved of the graduate's 
active-duty service obligation under subsection (b) before the 
completion of that active-duty service obligation may be given, with or 
without the consent of the graduate, an alternative obligation in the 
same manner as provided in subparagraphs (A) and (B) of paragraph (1) of 
section 2123(e)(1) of this title or paragraph (2) of such section for 
members of the Armed Forces Health Professions Scholarship and Financial 
Assistance program.''.
    (c) Application <<NOTE: 10 USC 2114 note.>> of Amendments.--The 
amendments made by this section shall apply with respect to individuals 
who first become members of the Armed Forces Health Professions 
Scholarship and Financial Assistance program or students of the 
Uniformed Services University of the Health Sciences on or after October 
1, 1996.

    (d) Transition <<NOTE: 10 USC 2123 note.>> Provision.--(1) In the 
case of any member of the Armed Forces Health Professions Scholarship 
and Financial Assistance program who, as of October 1, 1996, is serving 
an active duty obligation under the program or is incurring an active 
duty obligation as a participant in the program, and who is subsequently 
relieved of the active duty obligation before the completion of the 
obligation, the alternative obligations authorized by the amendment made 
by subsection (a) may be used by the Secretary of the military 
department concerned with the agreement of the member.

    (2) <<NOTE: 10 USC 2114 note.>> In the case of any person who, as of 
October 1, 1996, is serving an active-duty service obligation as a 
graduate of the Uniformed Services University of the Health Sciences or 
is incurring an active-duty service obligation as a student of the 
University, and who is subsequently relieved of the active-duty service 
obligation before the completion of the obligation, the alternative 
obligations authorized by the amendment made by subsection (b) may be 
implemented by the Secretary of Defense with the agreement of the 
person.

    (e) Report on Utilization of Graduates of University.--Not later 
than 120 days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report on the utilization by the 
Department of Defense of graduates of the Uniformed Services University 
of the Health Sciences. The report shall include a discussion of means 
of ensuring that graduates of the University have received training in 
medical specialties for which the Department has particular need.
SEC. 742. EXTERNAL <<NOTE: 10 USC 1071 note.>> PEER REVIEW FOR 
                        DEFENSE HEALTH PROGRAM EXTRAMURAL MEDICAL 
                        RESEARCH INVOLVING HUMAN SUBJECTS.

    (a) Establishment of External Peer Review Process.--The Secretary of 
Defense shall establish a peer review process that will use persons who 
are not officers or employees of the Government to review the research 
protocols of medical research projects.
    (b) Peer Review Requirements.--Funds of the Department of Defense 
may not be obligated or expended for any medical research project unless 
the research protocol for the project has been approved by the external 
peer review process established under subsection (a).
    (c) Medical Research Project Defined.--For purposes of this section, 
the term ``medical research project'' means a research project that--
            (1) involves the participation of human subjects;

[[Page 110 STAT. 2601]]

            (2) is conducted solely by a non-Federal entity; and
            (3) is funded through the Defense Health Program account.

    (d) Effective <<NOTE: Applicability.>> Date.--The peer review 
requirements of subsection (b) shall take effect on October 1, 1996, 
and, except as provided in subsection (e), shall apply to all medical 
research projects proposed funded on or after that date, including 
medical research projects funded pursuant to any requirement of law 
enacted before, on, or after that date.

    (e) Exceptions.--Only the following medical research projects shall 
be exempt from the peer review requirements of sub- 
section (b):
            (1) A medical research project that the Secretary determines 
        has been substantially completed by October 1, 1996.
            (2) A medical research project funded pursuant to any 
        provision of law enacted on or after that date if the provision 
        of law specifically refers to this section and specifically 
        states that the peer review requirements do not apply.
SEC. 743. INDEPENDENT <<NOTE: 10 USC 1074 note.>> RESEARCH 
                        REGARDING GULF WAR 
                        SYNDROME.

    (a) Definitions.--For purposes of this section:
            (1) The term ``Gulf War service'' means service on active 
        duty as a member of the Armed Forces in the Southwest Asia 
        theater of operations during the Persian Gulf War.
            (2) The term ``Gulf War syndrome'' means the complex of 
        illnesses and symptoms commonly known as Gulf War syndrome.
            (3) The term ``Persian Gulf War'' has the meaning given that 
        term in section 101(33) of title 38, United States Code.

    (b) Research.--The Secretary of Defense shall provide, by contract, 
grant, or other transaction, for scientific research to be carried out 
by entities independent of the Federal Government on possible causal 
relationships between Gulf War syndrome and--
            (1) the possible exposures of members of the Armed Forces to 
        chemical warfare agents or other hazardous materials during Gulf 
        War service; and
            (2) the use by the Department of Defense during the Persian 
        Gulf War of combinations of various inoculations and 
        investigational new drugs.

    (c) Procedures for Awarding Grants.--The Secretary shall prescribe 
the procedures to be used to make research awards under subsection (b). 
The procedures shall--
            (1) include a comprehensive, independent peer-review process 
        for the evaluation of proposals for scientific research that are 
        submitted to the Department of Defense; and
            (2) provide for the final selection of proposals for award 
        to be based on the scientific merit and program relevance of the 
        proposed research.

    (d) Availability of Funds.--Of the amount authorized to be 
appropriated under section 301(21) for defense medical programs, 
$10,000,000 is available for research under subsection (b).
SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF 
                        DEPARTMENT OF DEFENSE RELATING TO GULF WAR 
                        ILLNESSES.

    (a) Medical Research and Clinical Care Programs.--The Comptroller 
General shall analyze the effectiveness of the medical research programs 
and clinical care programs of the Department

[[Page 110 STAT. 2602]]

of Defense that relate to illnesses that might have been contracted by 
members of the Armed Forces as a result of service in the Southwest Asia 
theater of operations during the Persian Gulf War.
    (b) Policies Regarding Investigational New Drugs.--The Comptroller 
General shall analyze the scope and effectiveness of the policies of the 
Department of Defense with respect to--
            (1) the use of investigational new drugs during the Persian 
        Gulf War to treat members of the Armed Forces who served in the 
        Southwest Asia theater of operations; and
            (2) the current use of investigational new drugs to treat 
        illnesses referred to in subsection (a).

    (c) Administration of Medical Records.--The Comptroller General 
shall analyze the administration of medical records by the military 
departments in order to assess the extent to which such records 
accurately reflect the pre-deployment medical assessments, immunization 
records, informed consent releases, complaints during routine sick call, 
emergency room visits, visits with unit medics during deployment, and 
other relevant medical information relating to the members and former 
members referred to in 
subsection (a) with respect to the illnesses referred to in that 
subsection.
    (d) Reports.--Not later than March 1, 1997, the Comptroller General 
shall submit to Congress a separate report on each of the analyses 
required under subsections (a), (b), and (c).
SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY PROGRAM.

    Not later than April 1, 1997, the Secretary of Defense shall submit 
to Congress a report evaluating the impact on the military health care 
system of limiting the service area of a facility designated as part of 
the specialized treatment facility program under section 1105 of title 
10, United States Code, to not more than 100 miles from the facility.
SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION OF 
                        MEDICAL AND DENTAL CARE FOR MEMBERS OF 
                        RESERVE COMPONENTS.

    (a) Study.--(1) In consultation with the Secretary of 
Transportation, the Secretary of Defense shall conduct a study of means 
of improving the provision of medical and dental care to members of the 
reserve components referred to in paragraph (2) in order to ensure 
uniformity and consistency in the provision of such care to such 
members.
    (2) The members of the reserve components referred to in paragraph 
(1) are the following:
            (A) Members on active duty, including active duty for 
        training and annual training duty.
            (B) Members on full-time National Guard duty.
            (C) Members on inactive-duty training, regardless of whether 
        such members are in a pay or nonpay status.

    (b) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the study conducted under subsection (a). The report shall include 
such recommendations (including recommendations for legislation) as the 
Secretary considers appropriate.

[[Page 110 STAT. 2603]]

SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF ARMED 
                        FORCES HEALTH PROFESSIONS SCHOLARSHIP AND 
                        FINANCIAL ASSISTANCE PROGRAM.

    It is the sense of Congress that the Secretary of Defense should 
work with the Secretary of the Treasury to interpret section 117 of the 
Internal Revenue Code of 1986 so that the limitation on the amount of a 
qualified scholarship or qualified tuition reduction excluded from gross 
income does not apply to any portion of a scholarship or financial 
assistance provided by the Secretary of Defense to a person enrolled in 
the Armed Forces Health Professions Scholarship and Financial Assistance 
program under subchapter I of chapter 105 of title 10, United States 
Code.

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

                   Subtitle A--Acquisition Management

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Authority to waive certain requirements for defense 
           acquisition pilot programs.
Sec. 804. Modification of authority to carry out certain prototype 
           projects.
Sec. 805. Increase in threshold amounts for major systems.
Sec. 806. Revisions in information required to be included in selected 
           acquisition reports.
Sec. 807. Increase in simplified acquisition threshold for humanitarian 
           or peacekeeping operations.
Sec. 808. Expansion of audit reciprocity among Federal agencies to 
           include post-award audits.
Sec. 809. Excessive compensation of certain contractor personnel.
Sec. 810. Exception to prohibition on procurement of foreign goods.

                        Subtitle B--Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom 
           of Information Act.
Sec. 822. Amendments relating to reports on procurement regulatory 
           activity.
Sec. 823. Amendment of multiyear limitation on contracts for inspection, 
           maintenance, and repair.
Sec. 824. Streamlined notice requirements to contractors and employees 
           regarding termination or substantial reduction in contracts 
           under major defense programs.
Sec. 825. Repeal of notice requirements for substantially or seriously 
           affected parties in downsizing efforts.
Sec. 826. Study of effectiveness of defense mergers.
Sec. 827. Annual report relating to Buy American Act.
Sec. 828. Foreign environmental technology.
Sec. 829. Assessment of national defense technology and industrial base 
           and 
           dependency of base on supplies available only from foreign 
           countries.
Sec. 830. Expansion of report on implementation of automated information 
           systems to include additional matters regarding information 
           resources management.
Sec. 831. Year 2000 software conversion.
Sec. 832. Procurement from firms in industrial base for production of 
           small arms.
Sec. 833. Cable television franchise agreements.

                   Subtitle A--Acquisition Management

SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $12,000,000 shall be available for carrying out the 
provisions of chapter 142 of title 10, United States Code.

[[Page 110 STAT. 2604]]

    (b) Specific Programs.--Of the amounts made available pursuant to 
subsection (a), $600,000 shall be available for fiscal year 1997 for the 
purpose of carrying out programs sponsored by eligible entities referred 
to in subparagraph (D) of section 2411(1) of title 10, United States 
Code, that provide procurement technical assistance in distressed areas 
referred to in subparagraph (B) of section 2411(2) of such title. If 
there is an insufficient number of satisfactory proposals for 
cooperative agreements in such distressed areas to allow effective use 
of the funds made available in accordance with this subsection in such 
areas, the funds shall be allocated among the Defense Contract 
Administration Services regions in accordance with section 2415 of such 
title.

SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j) of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking out ``1995'' and inserting 
        in lieu thereof ``1998''; and
            (2) in paragraph (2), by striking out ``1996'' and inserting 
        in lieu thereof ``1999''.
SEC. 803. AUTHORITY <<NOTE: 10 USC 2430 note.>> TO WAIVE CERTAIN 
                        REQUIREMENTS FOR DEFENSE ACQUISITION PILOT 
                        PROGRAMS.

    (a) Authority.--The Secretary of Defense may waive sections 2399, 
2403, 2432, and 2433 of title 10, United States Code, in accordance with 
this section for any defense acquisition program designated by the 
Secretary of Defense for participation in the defense acquisition pilot 
program authorized by section 809 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note).
    (b) Operational Test and Evaluation.--The Secretary of Defense may 
waive the requirements for operational test and evaluation for such a 
defense acquisition program as set forth in section 2399 of title 10, 
United States Code, if the Secretary--
            (1) determines (without delegation) that such test would be 
        unreasonably expensive or impractical;
            (2) develops a suitable alternate operational test program 
        for the system concerned;
            (3) describes in the test and evaluation master plan, as 
        approved by the Director of Operational Test and Evaluation, the 
        method of evaluation that will be used to evaluate whether the 
        system will be effective and suitable for combat; and
            (4) <<NOTE: Reports.>> submits to the congressional defense 
        committees a report containing the determination that was made 
        under paragraph (1), a justification for that determination, and 
        a copy of the plan required by paragraph (3).

    (c) Contractor Guarantees for Major Weapons Systems.--The Secretary 
of Defense may waive the requirements of section 2403 of title 10, 
United States Code, for such a defense acquisition program if an 
alternative guarantee is used that ensures high quality weapons systems.
    (d) Selected Acquisition Reports.--The Secretary of Defense may 
waive the requirements of sections 2432 and 2433 of title 10, United 
States Code, for such a defense acquisition program if the Secretary 
provides a single annual report to Congress at the end of each fiscal 
year that describes the status of the program in relation to the 
baseline description for the program established under section 2435 of 
such title.

[[Page 110 STAT. 2605]]

SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
                        PROJECTS.

    (a) Authorized Officials.--(1) Subsection (a) of section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160; 107 Stat. 1721; 10 U.S.C. 2371 note) is amended by inserting ``, 
the Secretary of a military department, or any other official designated 
by the Secretary of Defense'' after ``Agency''.
    (2) Subsection (b)(2) of such section is amended to read as follows:

    ``(2) To the maximum extent practicable, competitive procedures 
shall be used when entering into agreements to carry out projects under 
subsection (a).''.
    (b) Extension of Authority.--Subsection (c) of such section is 
amended by striking out ``terminate'' and all that follows and inserting 
in lieu thereof ``terminate at the end of September 30, 1999.''.
    (c) Conforming and Technical Amendments.--Section 845 of such Act is 
further amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking out ``(c)(2) and 
                (c)(3) of such section 2371, as redesignated by section 
                827(b)(1)(B),'' and inserting in lieu thereof ``(e)(2) 
                and (e)(3) of such section 2371''; and
                    (B) in paragraph (2), by inserting after 
                ``Director'' the following: ``, Secretary, or other 
                official''; and
            (2) in subsection (c), by striking out ``of the Director''.

SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

    (a) Increase and Adjustment.--Chapter 137 of title 10, United States 
Code, is amended--
            (1) in section 2302(5), by striking out the third sentence 
        and inserting in lieu thereof the following: ``A system shall be 
        considered a major system if (A) the conditions of section 2302d 
        of this title are satisfied, or (B) the system is designated a 
        `major system' by the head of the agency responsible for the 
        system.''; and
            (2) by inserting after section 2302c the following:
``Sec. 2302d. Major system: definitional threshold amounts

    ``(a) Department of Defense Systems.--For purposes of section 
2302(5) of this title, a system for which the Department of Defense is 
responsible shall be considered a major system if--
            ``(1) the total expenditures for research, development, 
        test, and evaluation for the system are estimated to be more 
        than $115,000,000 (based on fiscal year 1990 constant dollars); 
        or
            ``(2) the eventual total expenditure for procurement of more 
        than $540,000,000 (based on fiscal year 1990 constant dollars).

    ``(b) Civilian Agency Systems.--For purposes of section 2302(5) of 
this title, a system for which a civilian agency is responsible shall be 
considered a major system if total expenditures for the system are 
estimated to exceed the greater of--
            ``(1) $750,000 (based on fiscal year 1980 constant 
        dollars); or
            ``(2) the dollar threshold for a `major system' established 
        by the agency pursuant to Office of Management and Budget (OMB) 
        Circular A-109, entitled `Major Systems Acquisitions'.

[[Page 110 STAT. 2606]]

    ``(c) Adjustment Authority.--(1) The Secretary of Defense may adjust 
the amounts and the base fiscal year provided in subsection (a) on the 
basis of Department of Defense escalation rates.
    ``(2) An amount, as adjusted under paragraph (1), that is not evenly 
divisible by $5,000,000 shall be rounded to the nearest multiple of 
$5,000,000. In the case of an amount that is evenly divisible by 
$2,500,000 but not evenly divisible by $5,000,000, the amount shall be 
rounded to the next higher multiple of $5,000,000.
    ``(3) <<NOTE: Effective date.>> An adjustment under this subsection 
shall be effective after the Secretary transmits to the Committee 
on <<NOTE: Notification.>> Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a written 
notification of the adjustment.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2302c the following:

``2302d. Major system: definitional threshold amounts.''.

SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED IN SELECTED 
            ACQUISITION REPORTS.

    Section 2432 of title 10, United States Code, is amended--
            (1) in subsection (c)(1)--
                    (A) by striking out ``and'' at the end of subpara-
                graph (B);
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph (C):
            ``(C) the current procurement unit cost for each major 
        defense acquisition program included in the report and the 
        history of that cost from the date the program was first 
        included in a Selected Acquisition Report to the end of the 
        quarter for which the current report is submitted; and''; and
            (2) in subsection (e), by striking out paragraph (8) and 
        redesignating paragraph (9) as paragraph (8).
SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR 
                        HUMANITARIAN OR PEACEKEEPING OPERATIONS.

    (a) Armed Services Acquisitions.--Section 2302(7) of title 10, 
United States Code, is amended--
            (1) by inserting ``(A)'' after ``(7)'';
            (2) by inserting after ``contingency operation'' the 
        following: ``or a humanitarian or peacekeeping operation''; and
            (3) by adding at the end the following:
            ``(B) In subparagraph (A), the term `humanitarian or 
        peacekeeping operation' means a military operation in support of 
        the provision of humanitarian or foreign disaster assistance or 
        in support of a peacekeeping operation under chapter VI or VII 
        of the Charter of the United Nations. The term does not include 
        routine training, force rotation, or stationing.''.

    (b) Civilian Agency Acquisitions.--Section 309(d) of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
259(d)) is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) by inserting after ``contingency operation'' the 
        following: ``or a humanitarian or peacekeeping operation''; and
            (3) by adding at the end the following:

    ``(2) In paragraph (1):

[[Page 110 STAT. 2607]]

            ``(A) The term `contingency operation' has the meaning given 
        such term in section 101(a) of title 10, United States Code.
            ``(B) The term `humanitarian or peacekeeping operation' 
        means a military operation in support of the provision of 
        humanitarian or foreign disaster assistance or in support of a 
        peacekeeping operation under chapter VI or VII of the Charter of 
        the United Nations. The term does not include routine training, 
        force rotation, or stationing.''.
SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL AGENCIES TO 
                        INCLUDE POST-AWARD AUDITS.

    (a) Armed Services Acquisitions.--Subsection (d) of section 2313 of 
title 10, United States Code, is amended to read as follows:
    ``(d) Limitation on Audits Relating to Indirect Costs.--The head of 
an agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the contract, 
subcontract, or modification in any case in which the contracting 
officer determines that the objectives of the audit can reasonably be 
met by accepting the results of an audit that was conducted by any other 
department or agency of the Federal Government within one year preceding 
the date of the contracting officer's determination.''.
    (b) Civilian Agency Acquisitions.--Subsection (d) of section 304C of 
the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
254d) is amended to read as follows:
    ``(d) Limitation on Audits Relating to Indirect Costs.--An executive 
agency may not perform an audit of indirect costs under a contract, 
subcontract, or modification before or after entering into the contract, 
subcontract, or modification in any case in which the contracting 
officer determines that the objectives of the audit can reasonably be 
met by accepting the results of an audit that was conducted by any other 
department or agency of the Federal Government within one year preceding 
the date of the contracting officer's determination.''.
    (c) Guidelines <<NOTE: 31 USC 7505 note.>> for Acceptance of Audits 
by State and Local Governments Receiving Federal Assistance.--The 
Director of the Office of Management and Budget shall issue guidelines 
to ensure that an audit of indirect costs performed by the Federal 
Government is accepted by State and local governments that receive 
Federal funds under contracts, grants, or other Federal assistance 
programs.

SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

    (a) Armed Services Procurements.--(1) During fiscal year 1997, the 
head of an agency shall treat the costs described in paragraph (2) as 
not allowable under a covered contract, in the same manner as costs 
listed in section 2324(e)(1) of title 10, United States Code.
    (2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that the 
total amount of the compensation paid in a fiscal year exceeds $250,000.
    (b) Civilian Agency Procurements.--(1) During fiscal year 1997, an 
executive agency shall treat the costs described in paragraph (2) as not 
allowable under a covered contract, in the same manner as costs listed 
in section 306(e)(1) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 256(e)(1)).

[[Page 110 STAT. 2608]]

    (2) The costs covered by paragraph (1) are costs of compensation 
paid with respect to services of any one officer to the extent that the 
total amount of the compensation paid in a fiscal year exceeds $250,000.
    (c) Definitions.--In this section:
            (1) The term ``head of an agency'' has the meaning provided 
        in section 2302 of title 10, United States Code.
            (2) The term ``executive agency'' has the meaning provided 
        in section 3 of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 472).
            (3) The term ``covered contract''--
                    (A) with respect to procurements subject to chapter 
                137 of title 10, United States Code, has the meaning 
                provided by section 2324(l) of such title; and
                    (B) with respect to procurements subject to title 
                III of the Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 251 et seq.), has the meaning 
                provided by section 306(l) of such Act (41 U.S.C. 
                256(l)).
            (4) The term ``compensation'' means--
                    (A) the total amount of wages as defined in section 
                3401(a) of the Internal Revenue Code of 1986 for the 
                year concerned; and
                    (B) the total amount of elective deferrals (within 
                the meaning of section 402(g)(3) of such Code) for the 
                year concerned.
            (5) The term ``officer'' means a person who is determined to 
        be in a senior management position as established by regulation.

    (d) Review.--The Administrator for Federal Procurement Policy, in 
consultation with the Secretary of Defense, shall conduct a 
comprehensive review of the levels of compensation received by senior 
executives of corporations performing a significant amount of business 
with the Federal Government in order to determine the appropriate cost 
allowability policy in this area. Such a review should include the 
following:
            (1) In consultation with the Secretary of the Treasury, an 
        examination of the appropriate definition and treatment of 
        compensation, including deferred compensation.
            (2) An examination of the appropriate definition of senior 
        executive positions and any other positions that should be 
        covered under the cost allowability policy.
            (3) An examination of how to apply the cost allowability 
        policy to individual contracts and aggregations of contracts 
        within a corporation.
            (4) Any other matter related to the cost allowability of 
        executive compensation that the Administrator considers 
        appropriate.

    (e) Legislative <<NOTE: President.>> Proposal.--Not later than March 
1, 1997, the President shall submit to Congress a legislative proposal 
incorporating the conclusions reached by the review conducted under 
subsection (d) and establishing a statutory Government standard on the 
cost allowability of executive compensation.
SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF 
                        FOREIGN GOODS.

    Section 2534(d)(3) of title 10, United States Code, is amended by 
inserting ``or would impede the reciprocal procurement of defense

[[Page 110 STAT. 2609]]

items under a memorandum of understanding providing for reciprocal 
procurement of defense items that is entered into under section 2531 of 
this title,'' after ``a foreign country,''.

                        Subtitle B--Other Matters

SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS UNDER 
                        FREEDOM OF INFORMATION ACT.

    (a) Armed Services Acquisitions.--Section 2305 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(g) Prohibition on Release of Contractor Proposals.--(1) Except as 
provided in paragraph (2), a proposal in the possession or control of 
the Department of Defense may not be made available to any person under 
section 552 of title 5.
    ``(2) Paragraph (1) does not apply to any proposal that is set forth 
or incorporated by reference in a contract entered into between the 
Department and the contractor that submitted the proposal.
    ``(3) In this subsection, the term `proposal' means any proposal, 
including a technical, management, or cost proposal, submitted by a 
contractor in response to the requirements of a solicitation for a 
competitive proposal.''.
    (b) Civilian Agency Acquisitions.--Section 303B of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253b) is amended by adding at the end the following new subsection:
    ``(m) Prohibition on Release of Contractor Proposals.--(1) Except as 
provided in paragraph (2), a proposal in the possession or control of an 
executive agency may not be made available to any person under section 
552 of title 5, United States Code.
    ``(2) Paragraph (1) does not apply to any proposal that is set forth 
or incorporated by reference in a contract entered into between the 
agency and the contractor that submitted the proposal.
    ``(3) In this subsection, the term `proposal' means any proposal, 
including a technical, management, or cost proposal, submitted by a 
contractor in response to the requirements of a solicitation for a 
competitive proposal.''.
SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT REGULATORY 
                        ACTIVITY.

    Subsection (g) of section 25 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 421) is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``within 6 months after the date 
                of enactment of this section and every 6 months 
                thereafter'' and inserting in lieu thereof ``every 12 
                months''; and
                    (B) by inserting ``and'' after the semicolon at the 
                end;
            (2) in paragraph (2)(H), by striking out ``; and'' and 
        inserting in lieu thereof a period; and
            (3) by striking out paragraph (3).
SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS FOR 
                        INSPECTION, MAINTENANCE, AND REPAIR.

    Paragraph (14) of section 210(a) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended by 
striking out ``for periods not exceeding three years'' and inserting in 
lieu thereof ``for periods not exceeding five years''.

[[Page 110 STAT. 2610]]

SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS AND 
                        EMPLOYEES REGARDING TERMINATION OR 
                        SUBSTANTIAL REDUCTION IN CONTRACTS UNDER 
                        MAJOR DEFENSE PROGRAMS.

    (a) Elimination of Unnecessary Requirements.--Section 4471 of the 
Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 
(division D of Public Law 102-484; 10 U.S.C. 2501 note) is amended--
            (1) by striking out subsection (a);
            (2) by striking out subsection (f), except paragraph (4);
            (3) by redesignating subsections (b), (c), (d), (e), and (g) 
        as subsections (a), (b), (c), (d), and (f), respectively; and
            (4) by redesignating such paragraph (4) as subsection (e).

    (b) Notice to Contractors.--Subsection (a) of such section, as 
redesignated by subsection (a)(3), is amended by striking out paragraphs 
(1) and (2) and inserting in lieu thereof the following:
            ``(1) shall identify each contract (if any) under major 
        defense programs of the Department of Defense that will be 
        terminated or substantially reduced as a result of the funding 
        levels provided in that Act; and
            ``(2) shall ensure that notice of the termination of, or 
        substantial reduction in, the funding of the contract is 
        provided--
                    ``(A) directly to the prime contractor under the 
                con- 
                tract; and
                    ``(B) directly to the Secretary of Labor.''.

    (c) Notice to Subcontractors.--Subsection (b) of such section, as 
redesignated by subsection (a)(3), is amended--
            (1) by striking out ``As soon as'' and all that follows 
        through ``prime contractor shall--'' in the matter preceding 
        paragraph (1) and inserting in lieu thereof ``Not later than 60 
        days after the date on which the prime contractor for a contract 
        under a major defense program receives notice under subsection 
        (a), the prime contractor shall--'';
            (2) in paragraph (1)--
                    (A) by striking out ``for that program under a 
                contract'' and inserting in lieu thereof ``under that 
                prime contract for subcontracts''; and
                    (B) by striking out ``for the program''; and
            (3) in paragraph (2)(A), by striking out ``for the program 
        under a contract'' and inserting in lieu thereof ``for 
        subcontracts''.

    (d) Notice to Employees and State Dislocated Worker Unit.--
Subsection (c) of such section, as redesignated by subsection (a)(3), is 
amended by striking out ``under subsection (a)(1)'' and all that follows 
through ``a defense program,'' in the matter preceding paragraph (1) and 
inserting in lieu thereof ``under subsection (a),''.
    (e) Cross References and Conforming Amendments.--(1) Subsection (d) 
of such section, as redesignated by subsection (a)(3), is amended--
            (A) by striking out ``a major defense program provided under 
        subsection (d)(1)'' and inserting in lieu thereof ``a defense 
        contract provided under subsection (c)(1)''; and
            (B) by striking out ``the program'' and inserting in lieu 
        thereof ``the contract''.

[[Page 110 STAT. 2611]]

    (2) Subsection (e) of such section, as redesignated by subsection 
(a)(4), is amended--
            (A) by striking out ``eligibility'' and inserting in lieu 
        thereof ``Eligibility''; and
            (B) by striking out ``under paragraph (3)'' and inserting in 
        lieu thereof ``or cancellation of the termination of, or 
        substantial reduction in, contract funding''.

    (3) Subsection (f) of such section, as redesignated by subsection 
(a)(3), is amended in paragraph (2)--
            (A) by inserting ``a defense contract under'' before ``a 
        major defense program''; and
            (B) by striking out ``contracts under the program'' and 
        inserting in lieu thereof ``the funds obligated by the 
        contract''.
SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY OR 
                        SERIOUSLY AFFECTED PARTIES IN DOWNSIZING 
                        EFFORTS.

    Sections 4101 and 4201 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1850, 1851; 10 U.S.C. 
2391 note) are repealed.

SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

    (a) Study.--The Secretary of Defense shall conduct a study on 
mergers and acquisitions in the defense sector. The study shall address 
the following:
            (1) The effectiveness of defense mergers and acquisitions in 
        eliminating excess capacity within the defense industry.
            (2) The degree of change in the dependence by defense 
        contractors on defense-related Federal contracts within their 
        overall business after mergers.
            (3) The effect on defense industry employment resulting from 
        defense mergers and acquisitions occurring during the three 
        years preceding the date of the enactment of this Act.
            (4) The effect on competition for defense contracts.

    (b) Report.--Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report on the results of the study conducted under subsection (a).

SEC. 827. <<NOTE: 41 USC 10b-3.>> ANNUAL REPORT RELATING TO BUY AMERICAN 
            ACT.

    The Secretary of Defense shall submit to Congress, not later than 
120 days after the end of each fiscal year, a report on the amount of 
purchases by the Department of Defense from foreign entities in that 
fiscal year. Such report shall separately indicate the dollar value of 
items for which the Buy American Act (41 U.S.C. 10a et seq.) was waived 
pursuant to any of the following:
            (1) Any reciprocal defense procurement memorandum of 
        understanding described in section 849(c)(2) of Public Law 103-
        160 (41 U.S.C. 10b-2 note).
            (2) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et 
        seq.)
            (3) Any international agreement to which the United States 
        is a party.

SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

    Subsection (b) of section 2536 of title 10, United States Code, is 
amended to read as follows:

[[Page 110 STAT. 2612]]

    ``(b) Waiver Authority.--(1) The Secretary concerned may waive the 
application of subsection (a) to a contract award if--
            ``(A) the Secretary concerned determines that the waiver is 
        essential to the national security interests of the United 
        States; or
            ``(B) in the case of a contract awarded for environmental 
        restoration, remediation, or waste management at a Department of 
        Defense or Department of Energy facility--
                    ``(i) the Secretary concerned determines that the 
                waiver will advance the environmental restoration, 
                remediation, or waste management objectives of the 
                department concerned and will not harm the national 
                security interests of the United States; and
                    ``(ii) the entity to which the contract is awarded 
                is controlled by a foreign government with which the 
                Secretary concerned is authorized to exchange Restricted 
                Data under section 144 c. of the Atomic Energy Act of 
                1954 (42 U.S.C. 2164(c)).

    ``(2) <<NOTE: Notification.>> The Secretary concerned shall notify 
Congress of any decision to grant a waiver under paragraph (1)(B) with 
respect to a contract. The contract may be awarded only after the end of 
the 45-day period beginning on the date the notification is received by 
the committees.''.
SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL 
                        BASE AND DEPENDENCY OF BASE ON 
                        SUPPLIES AVAILABLE ONLY FROM FOREIGN 
                        COUNTRIES.

    (a) National Security Objectives for National Technology and 
Industrial Base.--Section 2501(a) of title 10, United States Code, is 
amended by adding at the end the following:
            ``(5) Providing for the development, manufacture, and supply 
        of items and technologies critical to the production and 
        sustainment of advanced military weapon systems within the 
        national technology and industrial base.''.

    (b) National Defense Program for Analysis of the Technology and 
Industrial Base.--Section 2503 of title 10, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking out ``(1) The Secretary of Defense, 
                in consultation with the National Defense Technology and 
                Industrial Base Council,'' in paragraph (1) and 
                inserting in lieu thereof ``The Secretary of Defense''; 
                and
                    (B) by striking out paragraphs (2), (3), and (4); 
                and
            (2) in subsection (c)(3)(A)--
                    (A) by striking out ``the National Defense 
                Technology and Industrial Base Council in'' and 
                inserting in lieu thereof ``the Secretary of Defense 
                for''; and
                    (B) by striking out ``and the periodic plans 
                required by section 2506 of this title''.

    (c) Periodic Defense Capability Assessments, Including Foreign 
Dependency.--(1) Section 2505 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2505. National technology and industrial base: periodic 
                    defense capability assessments

    ``(a) Periodic Assessment.--Each fiscal year, the Secretary of 
Defense shall prepare selected assessments of the capability

[[Page 110 STAT. 2613]]

of the national technology and industrial base to attain the national 
security objectives set forth in section 2501(a) of this title. The 
Secretary of Defense shall prepare such assessments in consultation with 
the Secretary of Commerce and the Secretary of Energy.
    ``(b) Assessment Process.--The Secretary of Defense shall ensure 
that technology and industrial capability assessments--
            ``(1) describe sectors or capabilities, their underlying 
        infrastructure and processes;
            ``(2) analyze present and projected financial performance of 
        industries supporting the sectors or capabilities in the 
        assessment; and
            ``(3) identify technological and industrial capabilities and 
        processes for which there is potential for the national 
        industrial and technology base not to be able to support the 
        achievement of national security objectives.

    ``(c) Assessment of Extent of Dependency on Foreign Source Items.--
Each assessment under subsection (a) shall include a separate discussion 
and presentation regarding the extent to which the national technology 
and industrial base is dependent on items for which the source of 
supply, manufacture, or technology is outside of the United States and 
Canada and for which there is no immediately available source in the 
United States or Canada. The discussion and presentation regarding 
foreign dependency shall--
            ``(1) identify cases that pose an unacceptable risk of 
        foreign dependency, as determined by the Secretary; and
            ``(2) present actions being taken or proposed to be taken to 
        remedy the risk posed by the cases identified under paragraph 
        (1), including efforts to develop a domestic source for the item 
        in question.

    ``(d) Integrated Process.--The Secretary of Defense shall ensure 
that consideration of the technology and industrial base assessments is 
integrated into the overall budget, acquisition, and logistics support 
decision processes of the Department of Defense.''.
    (2) Section 2502(b) of title 10, United States Code, is amended--
            (A) by striking out ``the following responsibilities:'' and 
        all that follows through ``effective cooperation'' and inserting 
        in lieu thereof ``the responsibility to ensure effective 
        cooperation''; and
            (B) by striking out paragraph (2); and

    (3) by redesignating subparagraphs (A), (B), and (C) as paragraphs 
(1), (2), and (3), respectively, and adjusting the margin of such 
paragraphs two ems to the left.
    (d) Repeal of Requirement for Periodic Defense Capability Plan; 
Development of Policy Guidance.--Section 2506 of title 10, United States 
Code, is amended to read as follows:
``Sec. 2506. Department of Defense technology and industrial base 
                    policy guidance

    ``(a) Departmental Guidance.--The Secretary of Defense shall 
prescribe departmental guidance for the attainment of each of the 
national security objectives set forth in section 2501(a) of this title. 
Such guidance shall provide for technological and industrial capability 
considerations to be integrated into the budget allocation, weapons 
acquisition, and logistics support decision processes.
    ``(b) Report to Congress.--The Secretary of Defense shall report on 
the implementation of the departmental guidance in the

[[Page 110 STAT. 2614]]

annual report to Congress submitted pursuant to section 2504 of this 
title.''.

    (e) Annual Report to Congress.--Subchapter II of chapter 148 of 
title 10, United States Code, is amended by inserting after section 2503 
the following new section:

``Sec. 2504. Annual report to Congress

    ``The Secretary of Defense shall transmit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives by March 1 of each year a report which shall 
include the following information:
            ``(1) A description of the departmental guidance prepared 
        pursuant to section 2506 of this title.
            ``(2) A description of the methods and analyses being 
        undertaken by the Department of Defense alone or in cooperation 
        with other Federal agencies, to identify and address concerns 
        regarding technological and industrial capabilities of the 
        national technology and industrial base.
            ``(3) A description of the assessments prepared pursuant to 
        section 2505 of this title and other analyses used in developing 
        the budget submission of the Department of Defense for the next 
        fiscal year.
            ``(4) Identification of each program designed to sustain 
        specific essential technological and industrial capabilities and 
        processes of the national technology and industrial base.''.

    (f) Repeal of Requirement To Coordinate the Encouragement of 
Technology Transfer With the Council.--Subsection 2514(c) of title 10, 
United States Code, is amended by striking out paragraph (5).
    (g) Clerical Amendments.--(1) The table of sections at the beginning 
of subchapter II of chapter 148 of title 10, United States Code, is 
amended by inserting after the item relating to section 2503 the 
following new item:

``2504. Annual report to Congress.''.

    (2) Such table of sections is further amended by striking out the 
item relating to section 2506 and inserting in lieu thereof the 
following new item:

``2506. Department of Defense technology and industrial base policy 
           guidance.''.

    (h) Repeal <<NOTE: 10 USC 2501 note.>> of Superseded and Executed 
Law.--Sections 4218, 4219, and 4220 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 
2505 note and 2506 note) are repealed.
SEC. 830. EXPANSION <<NOTE: 10 USC 113 note.>> OF REPORT ON 
                        IMPLEMENTATION OF AUTOMATED INFORMATION 
                        SYSTEMS TO INCLUDE ADDITIONAL MATTERS 
                        REGARDING INFORMATION RESOURCES 
                        MANAGEMENT.

    (a) Expanded Report.--The Secretary of Defense shall include in the 
report submitted in 1997 under section 381(f) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
113 note) a discussion of the following matters relating to information 
resources management:
            (1) The progress made in implementing the Information 
        Technology Management Reform Act of 1996 (division E of Public 
        Law 104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) and the 
        amendments made by that Act.

[[Page 110 STAT. 2615]]

            (2) The progress made in implementing the strategy for the 
        development or modernization of automated information systems 
        for the Department of Defense, as required by section 366 of the 
        National Defense Authorization Act for Fiscal Year 1996 (Public 
        Law 104-106; 110 Stat. 275; 10 U.S.C. 113 note).
            (3) Plans of the Department of Defense for establishing an 
        integrated framework for management of information resources 
        within the department.

    (b) Specific Elements of Report.--The presentation of matters under 
subsection (a) shall specifically include a discussion of the following:
            (1) The status of the implementation of performance 
        measures.
            (2) The specific actions being taken to link the proposed 
        performance measures to the planning, programming, and budgeting 
        system of the Department of Defense and to the life-cycle 
        management processes of the department.
            (3) The results of pilot program testing of proposed 
        performance measures.
            (4) The additional training necessary for the implementation 
        of performance-based information management.
            (5) The department-wide actions that are necessary to 
        comply with the requirements of the following provisions of law:
                    (A) The amendments made by the Government 
                Performance and Results Act of 1993 (Public Law 103-62; 
                107 Stat. 285).
                    (B) The Information Technology Management Reform Act 
                of 1996 (division E of Public Law 104-106; 110 Stat. 
                679; 40 U.S.C. 1401 et seq.) and the amendments made by 
                that Act.
                    (C) Title V of the Federal Acquisition Streamlining 
                Act of 1994 (Public Law 103-355; 108 Stat. 3349) and the 
                amendments made by that title.
                    (D) The Chief Financial Officers Act of 1990 (Public 
                Law 101-576; 104 Stat. 2838) and the amendments made by 
                that Act.

SEC. 831. <<NOTE: 10 USC 2302 note.>> YEAR 2000 SOFTWARE CONVERSION.

    (a) Year 2000 Software Conversion.--The Secretary of Defense shall 
ensure that, as soon as practicable, all information technology acquired 
by the Department of Defense pursuant to contracts entered into after 
September 30, 1996, has the capabilities to process date and date-
related data in 2000.
    (b) Assessment.--The Secretary, acting through the chief information 
officers within the department (as designated pursuant to section 3506 
of title 44, United States Code), shall assess all information 
technology within the Department of Defense to determine the extent to 
which such technology has the capabilities to operate effectively.
    (c) Plan.--Not later than January 1, 1997, the Secretary shall 
submit to Congress a detailed plan for eliminating any
deficiencies identified pursuant to subsection (b). The plan shall 
include--
            (1) a list of affected major systems;
            (2) a description of how the deficiencies could affect the 
        national security of the United States; and

[[Page 110 STAT. 2616]]

            (3) an estimate and prioritization of the resources that are 
        necessary to eliminate the deficiencies.
SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR PRODUCTION 
                        OF SMALL ARMS.

    (a) Requirement.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2473. Procurements from the small arms production 
                    industrial base

    ``(a) Authority To Limit Procurements To Certain Sources.--To the 
extent that the Secretary of Defense determines necessary to preserve 
the small arms production industrial base, the Secretary may require 
that any procurement of property or services described in subsection (b) 
for the Department of Defense be made only from a firm in the small arms 
production industrial base.
    ``(b) Covered Property and Services.--Subsection (a) applies to the 
following:
            ``(1) Repair parts for small arms.
            ``(2) Modifications of parts to improve small arms used by 
        the armed forces.

    ``(c) Small Arms Production Industrial Base.--In this section, the 
term `small arms production industrial base' means the firms comprising 
the small arms production industrial base, as described in the plan 
entitled `Preservation of Critical Elements of the Small Arms Industrial 
Base', dated January 8, 1994, that was prepared by an independent 
assessment panel of the Army Science Board.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2473. Procurements from the small arms production industrial base.''.

SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

    Based on the advisory opinion from the United States Court of 
Federal Claims, In the Matter of the Department of Defense Cable 
Television Franchise Agreements, National Defense Authorization Act for 
Fiscal Year 1996, Section 823, No. 96-133X (July 11, 1996)--
            (1) cable television franchise agreements for the 
        construction, installation, or capital improvement of cable 
        systems at military installations shall be considered contracts 
        for purposes of the Federal Acquisition Regulation;
            (2) cable television operators are entitled to recovery of 
        their investments at such installations to the extent authorized 
        in part 49 of the Federal Acquisition Regulation; and
            (3) the appropriate official of the Department of Defense 
        shall promptly issue a written notice of the termination for the 
        convenience of the Government of the contracts described in such 
        advisory opinion and commence settlement negotiations pursuant 
        to the requirements of part 49 of the Federal Acquisition 
        Regulation.

[[Page 110 STAT. 2617]]

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory 
           positions in Office of the Secretary of Defense.
Sec. 902. Additional required reduction in defense acquisition 
           workforce.
Sec. 903. Reduction of personnel assigned to Office of the Secretary of 
           Defense.
Sec. 904. Report on military department headquarters staffs.
Sec. 905. Matters to be considered in next assessment of current 
           missions, responsibilities, and force structure of the 
           unified combatant commands.
Sec. 906. Transfer of authority to control transportation systems in 
           time of war.
Sec. 907. Codification of requirements relating to continued operation 
           of the 
           Uniformed Services University of the Health Sciences.
Sec. 908. Joint Requirements Oversight Council.
Sec. 909. Membership of the Ammunition Storage Board.
Sec. 910. Removal of Secretary of the Army from membership on the 
           Foreign Trade Zone Board.
Sec. 911. Composition of aircraft accident investigation boards.
Sec. 912. Mission of the White House Communications Agency.

                   Subtitle B--Force Structure Review

Sec. 921. Short title.
Sec. 922. Findings.
Sec. 923. Quadrennial Defense Review.
Sec. 924. National Defense Panel.
Sec. 925. Postponement of deadlines.
Sec. 926. Definitions.

                       Subtitle A--General Matters

SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER OF 
                        STATUTORY POSITIONS IN OFFICE OF THE 
                        SECRETARY OF DEFENSE.

    Section 903 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 401) <<NOTE: 10 USC 131, 131 
note, 133a, 134a, 137, 138, 142, 167 note, 176, 1056, 1216, 1587, 
10201.>> is repealed.
SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION 
                        WORKFORCE.

    (a) Additional Reductions for Fiscal Year 1997.--Section 906(d) of 
the National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 405) is amended in paragraph (1) by striking out 
``positions during fiscal year 1996'' and all that follows and inserting 
in lieu thereof ``so that--
            ``(A) the total number of defense acquisition personnel as 
        of October 1, 1996, is less than the baseline number by at least 
        15,000; and
            ``(B) the total number of defense acquisition personnel as 
        of October 1, 1997, is less than the baseline number by at least 
        30,000.''.

    (b) Baseline Number.--Such section is further amended by adding at 
the end the following new paragraph:
    ``(3) For purposes of this subsection, the term `baseline number' 
means the total number of defense acquisition personnel as of October 1, 
1995.''.
SEC. 903. REDUCTION <<NOTE: 10 USC 131 note.>> OF PERSONNEL 
                        ASSIGNED TO OFFICE OF THE SECRETARY OF 
                        DEFENSE.

    (a) Permanent <<NOTE: Effective dates.>> Limitation on OSD 
Personnel.--Effective October 1, 1999, the number of OSD personnel may 
not exceed 75 percent of the baseline number.

[[Page 110 STAT. 2618]]

    (b) Phased Reduction.--The number of OSD personnel--
            (1) as of October 1, 1997, may not exceed 85 percent of the 
        baseline number; and
            (2) as of October 1, 1998, may not exceed 80 percent of the 
        baseline number.

    (c) Baseline Number.--For purposes of this section, the term 
``baseline number'' means the number of OSD personnel as of 
October 1, 1994.
    (d) OSD Personnel Defined.--For purposes of this section, the term 
``OSD personnel'' means military and civilian personnel of the 
Department of Defense who are assigned to, or employed in, functions in 
the Office of the Secretary of Defense (including Direct Support 
Activities of that Office and the Washington Headquarters Services of 
the Department of Defense).
    (e) Limitation on Reassignment of Functions.--In carrying out 
reductions in the number of personnel assigned to, or employed in, the 
Office of the Secretary of Defense in order to comply with this section, 
the Secretary of Defense may not reassign functions solely in order to 
evade the requirements contained in this section.
    (f) Flexibility.--If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States national 
security, the Secretary may waive the limitation under that subsection 
with respect to that fiscal year. If the Secretary of Defense 
determines, and certifies to Congress, that the limitation in subsection 
(a) during fiscal year 1999 would adversely affect United States 
national security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. The authority under this 
subsection may be used only once, with respect to a single fiscal year.
    (g) Repeal of Prior Requirement.--Section 901(d) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 401) is repealed.
SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.

    (a) Review by Secretary of Defense.--The Secretary of Defense shall 
conduct a review of the size, mission, organization, and functions of 
the military department headquarters staffs. This review shall include 
the following:
            (1) An assessment on the adequacy of the present 
        organization structure to efficiently and effectively support 
        the mission of the military departments.
            (2) An assessment of options to reduce the number of 
        personnel assigned to the military department headquarters 
        staffs.
            (3) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        the military department headquarters staffs.
            (4) An assessment of the possible benefits that could be 
        derived from further functional consolidation between the 
        civilian secretariat of the military departments and the staffs 
        of the military service chiefs.
            (5) An assessment of the possible benefits that could be 
        derived from reducing the number of civilian officers in
the military departments who are appointed by and with the advice and 
consent of the Senate.

[[Page 110 STAT. 2619]]

    (b) Report.--Not later than March 1, 1997, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing--
            (1) the findings and conclusions of the Secretary resulting 
        from the review under subsection (a); and
            (2) a plan for implementing resulting recommendations, 
        including proposals for legislation (with supporting rationale) 
        that would be required as a result of the review.

    (c) Reduction in Total Number of Personnel Assigned.--In developing 
the plan under subsection (b)(2), the Secretary shall make every effort 
to provide for significant reductions in the overall number of military 
and civilian personnel assigned to or serving in the military department 
headquarters staffs.
    (d) Military Department Headquarters Staffs Defined.--For the 
purposes of this section, the term ``military department headquarters 
staffs'' means the offices, organizations, and other elements of the 
Department of Defense comprising the following:
            (1) The Office of the Secretary of the Army.
            (2) The Army Staff.
            (3) The Office of the Secretary of the Air Force.
            (4) The Air Staff.
            (5) The Office of the Secretary of the Navy.
            (6) The Office of the Chief of Naval Operations.
            (7) Headquarters, Marine Corps.
SEC. 905. MATTERS <<NOTE: 10 USC 161 note.>> TO BE CONSIDERED IN 
                        NEXT ASSESSMENT OF CURRENT MISSIONS, 
                        RESPONSIBILITIES, AND FORCE STRUCTURE OF 
                        THE UNIFIED COMBATANT COMMANDS.

    The Chairman of the Joint Chiefs of Staff shall consider, as part of 
the next periodic review by the Chairman of the missions, 
responsibilities, and force structure of the unified combatant commands 
pursuant to section 161(b) of title 10, United States Code, the 
following matters:
            (1) Whether there exists an adequate distribution of 
        threats, mission requirements, and responsibilities for 
        geographic areas among the regional unified combatant commands.
            (2) Whether reductions in the overall force structure of the 
        Armed Forces permit the United States to better execute its 
        warfighting plans through fewer or differently configured 
        unified combatant commands, including--
                    (A) a total of five or fewer commands, all of which 
                are regional;
                    (B) a total of three commands consisting of an 
                eastward-oriented command, a westward-oriented command, 
                and a central command;
                    (C) a purely functional command structure, involving 
                (for example) a first theater command, a second theater 
                command, a logistics command, a special contingencies 
                command, and a strategic command; or
                    (D) any other command structure or configuration the 
                Chairman finds appropriate.
            (3) Whether any missions, staff, facilities, equipment, 
        training programs, or other assets or activities of the unified 
        combatant commands are redundant.
            (4) Whether warfighting requirements are adequate to justify 
        the current functional commands.

[[Page 110 STAT. 2620]]

            (5) Whether the exclusion of certain nations from the Areas 
        of Responsibility of the unified combatant commands presents 
        difficulties with respect to the achievement of United States 
        national security objectives in those areas.
            (6) Whether the current geographic boundary between the 
        United States Central Command and the United States European 
        Command through the Middle East could create command conflicts 
        in the context of a major regional conflict in the Middle East 
        region.
SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION SYSTEMS 
                        IN TIME OF WAR.

    (a) Authority of Secretary of Defense.--Section 4742 of title 10, 
United States Code, is amended by striking out ``Secretary of the Army'' 
and inserting in lieu thereof ``Secretary of Defense''.
    (b) Transfer of Section.--Such section, as amended by subsection 
(a), is transferred to the end of chapter 157 of such title and is 
redesignated as section 2644.
    (c) Conforming Repeal.--Section 9742 of such title is repealed.
    (d) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 157 of such title is amended by adding at the end the 
following new item:

``2644. Control of transportation systems in time of war.''.

    (2) The table of sections at the beginning of chapter 447 of such 
title is amended by striking out the item relating to section 4742.
    (3) The table of sections at the beginning of chapter 947 of such 
title is amended by striking out the item relating to section 9742.
SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO 
                        CONTINUED OPERATION OF THE UNIFORMED 
                        SERVICES UNIVERSITY OF THE HEALTH 
                        SCIENCES.

    (a) Codification of Existing Law.--(1) Chapter 104 of title 10, 
United States Code, is amended by inserting after section 2112 the 
following new section:

``Sec. 2112a. Continued operation of University

    ``(a) Closure Prohibited.--The University may not be closed.
    ``(b) Personnel <<NOTE: Effective date.>> Strength.--During the 
five-year period beginning on October 1, 1996, the personnel staffing 
levels for the University may not be reduced below the personnel 
staffing levels for the University as of October 1, 1993.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2112 the 
following new item:

``2112a. Continued operation of University.''.

    (b) Repeal of Superseded Law.--(1) Section 922 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2829; 10 U.S.C. 2112 note) is amended by striking out subsection 
(a).
    (2) Section 1071 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 U.S.C. 2112 
note) is amended by striking out subsection (b).

[[Page 110 STAT. 2621]]

SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    Section <<NOTE: Effective date.>> 181 of title 10, United States 
Code, as added effective January 31, 1997, is amended by adding at the 
end the following new subsection:

    ``(d) Availability of Oversight Information to Congressional Defense 
Committees.--(1) The Secretary of Defense shall ensure that, in the case 
of a recommendation by the Chairman to the Secretary that is approved by 
the Secretary, oversight information with respect to such recommendation 
that is produced as a result of the activities of the Joint Requirements 
Oversight Council is made available in a timely fashion to the 
congressional defense committees.
    ``(2) In this subsection:
            ``(A) The term `oversight information' means information and 
        materials comprising analysis and justification that are 
        prepared to support a recommendation that is made to, and 
        approved by, the Secretary of Defense.
            ``(B) The term `congressional defense committees' means--
                    ``(i) the Committee on Armed Services and the 
                Committee on Appropriations of the Senate; and
                    ``(ii) the Committee on National Security and the 
                Committee on Appropriations of the House of 
                Representatives.''.
SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

    Section 172(a) of title 10, United States Code, is amended by 
striking out ``a joint board of officers selected by them'' and 
inserting in lieu thereof ``a joint board selected by them composed of 
officers, civilian officers and employees of the Department of Defense, 
or both''.
SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON THE 
                        FOREIGN TRADE ZONE BOARD.

    The first section of the Act of June 18, 1934 (Public Law Numbered 
397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C. 81a), popularly 
known as the ``Foreign Trade Zones Act'', is amended--
            (1) in subsection (b), by striking out ``the Secretary of 
        the Treasury, and the Secretary of War'' and inserting in lieu 
        thereof ``and the Secretary of the Treasury''; and
            (2) in subsection (c), by striking out ``Alaska, Hawaii,''.
SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION BOARDS.

    (a) Selection of Board Members.--(1) Chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2255. Aircraft accident investigation boards: composition 
                    requirements

    ``(a) Required Membership of Boards.--Whenever the Secretary of a 
military department convenes an aircraft accident investigation board to 
conduct an accident investigation (as described in section 2254(a)(2) of 
this title) with respect to a Class A accident involving an aircraft 
under the jurisdiction of the Secretary, the Secretary shall select the 
membership of the board so that--
            ``(1) a majority of the members (or in the case of a board 
        consisting of a single member, the member) is selected from

[[Page 110 STAT. 2622]]

        units other than the mishap unit or a unit subordinate to the 
        mishap unit; and
            ``(2) in the case of a board consisting of more than one 
        member, at least one member of the board is a member of the 
        armed forces or an officer or an employee of the Department of 
        Defense who possesses knowledge and expertise relevant to 
        aircraft accident investigations.

    ``(b) Exception.--(1) The Secretary of the military department 
concerned may waive the requirement of subsection (a)(1) in the case of 
an aircraft accident if the Secretary determines that--
            ``(A)  it  is  not  practicable  to  meet  the  requirement 
        because of--
                    ``(i) the remote location of the aircraft accident;
                    ``(ii) an urgent need to promptly begin the investi-
                gation; or
                    ``(iii) a lack of available persons outside of the 
                mishap unit who have adequate knowledge and expertise 
                regarding the type of aircraft involved in the accident; 
                and
            ``(B) the objectivity and independence of the aircraft 
        accident investigation board will not be compromised.

    ``(2) <<NOTE: Notification.>> The Secretary shall notify Congress of 
a waiver exercised under this subsection and the reasons therefor.

    ``(c) Consultation Requirement.--In the case of an aircraft accident 
investigation board consisting of a single member, the member shall 
consult with a member of the armed forces or an officer or an employee 
of the Department of Defense who possesses knowledge and expertise 
relevant to aircraft accident investigations.
    ``(d) Designation of Class A Accidents.--Not later than 60 days 
after an aircraft accident involving an aircraft under the jurisdiction 
of the Secretary of a military department, the Secretary shall determine 
whether the aircraft accident should be designated as a Class A accident 
for purposes of this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `Class A accident' means an accident 
        involving an aircraft that results in--
                    ``(A) the loss of life or permanent disability;
                    ``(B) damages to the aircraft, other property, or a 
                combination of both, in an amount in excess of the 
                amount specified by the Secretary of Defense for 
                purposes of determining Class A accidents; or
                    ``(C) the destruction of the aircraft.
            ``(2) The term `mishap unit', with respect to an aircraft 
        accident investigation, means the unit of the armed forces (at 
        the squadron or battalion level or equivalent) to which was 
        assigned the flight crew of the aircraft that sustained the 
        accident that is the subject of the investigation.''.

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

``2255. Aircraft accident investigation boards: composition 
           requirements.''.

    (b) Effective <<NOTE: Applicability. 10 USC 2255 note.>> Date.--
Section 2255 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to any aircraft accident investigation 
board convened by the Secretary of a military department after the end 
of the six-month period beginning on the date of the enactment of this 
Act.

[[Page 110 STAT. 2623]]

SEC. 912. <<NOTE: 10 USC 111 note.>> MISSION OF THE WHITE HOUSE 
            COMMUNICATIONS AGENCY.

    (a) Telecommunications Support.--The Secretary of Defense shall 
ensure that the activities of the White House Communications Agency in 
providing support services on a nonreimbursable basis for the President 
from funds appropriated for the Department of Defense for any fiscal 
year are limited to the provision of telecommunications support to the 
President and Vice President and to related elements (as defined in 
regulations of that agency and specified by the President with respect 
to particular individuals within those related elements).

    (b) Other Support.--Support services other than telecommunications 
support services described in subsection (a) may be provided by the 
Department of Defense for the President through the White House 
Communications Agency on a reimbursable basis.
    (c) White House Communications Agency.--For purposes of this 
section, the term ``White House Communications Agency'' means the 
element of the Department of Defense within the Defense Communications 
Agency that is known on the date of the enactment of this Act as the 
White House Communications Agency and includes any successor agency.
    (d) Report on Issues Raised by DOD Inspector General Review of White 
House Communications Agency.--Not later than October 1, 1996, or 30 days 
after the date of the enactment of this Act, whichever is later, the 
Secretary of Defense shall submit to Congress a report setting forth the 
actions taken by the Secretary to address the issues raised by the 
report of the Department of Defense Inspector General reviewing the 
mission of the White House Communications Agency.
    (e) Quarterly Reports During Fiscal Year 1997.--Not later than 30 
days after the end of each quarter of fiscal year 1997, the Secretary of 
Defense shall submit to Congress a report describing the support 
services other than telecommunications support services described in 
subsection (a) that were provided during the preceding quarter by the 
Department of Defense for the President through the White House 
Communications Agency.
    (f) Effective <<NOTE: Applicability.>> Date.--This section takes 
effect on October 1, 1997, and applies to funds appropriated for the 
Department of Defense for any fiscal year after fiscal year 1997.

    Subtitle B--Force <<NOTE: Military Force Structure Review Act of 
1996. 10 USC 111 note.>> Structure Review

SEC. 921. SHORT TITLE.

    This subtitle may be cited as the ``Military Force Structure Review 
Act of 1996''.

SEC. 922. FINDINGS.

    Congress makes the following findings:
            (1) Since the collapse of the Soviet Union in 1991, the 
        United States has conducted two substantial assessments of the 
        force structure of the Armed Forces necessary to meet United 
        States defense requirements.
            (2) The assessment by the Bush Administration (known as the 
        ``Base Force'' assessment) and the assessment by the Clinton 
        Administration (known as the ``Bottom-Up Review'') were intended 
        to reassess the force structure of the Armed

[[Page 110 STAT. 2624]]

        Forces in light of the changing realities of the post-Cold War 
        world.
            (3) Both assessments served an important purpose in focusing 
        attention on the need to reevaluate the military posture of the 
        United States, but the pace of global change necessitates a new, 
        comprehensive assessment of the defense strategy of the United 
        States and the force structure of the Armed Forces required to 
        meet the threats to the United States in the twenty-first 
        century.
            (4) The Bottom-Up Review has been criticized on several 
        points, including--
                    (A) the assumptions underlying the strategy of 
                planning to fight and win two nearly simultaneous major 
                regional conflicts;
                    (B) the force levels recommended to carry out that 
                strategy; and
                    (C) the funding proposed for such recommended force 
                levels.
            (5) In response to the recommendations of the Commission on 
        Roles and Missions of the Armed Forces, the Secretary of Defense 
        endorsed the concept of conducting a quadrennial review of the 
        defense program at the beginning of each newly elected 
        Presidential administration, and the Department intends to 
        complete the first such review in 1997.
            (6) The review is to involve a comprehensive examination of 
        defense strategy, the force structure of the active, guard, and 
        reserve components, force modernization plans, infrastructure, 
        and other elements of the defense program and policies in order 
        to determine and express the defense
strategy of the United States and to establish a revised defense program 
through the year 2005.
            (7) In order to ensure that the force structure of the Armed 
        Forces is adequate to meet the challenges to the national 
        security interests of the United States in the twenty-first 
        century, to assist the Secretary of Defense in conducting the 
        review referred to in paragraph (5), and to assess the 
        appropriate force structure of the Armed Forces through the year 
        2010 and beyond (if practicable), it is important to provide for 
        the conduct of an independent, nonpartisan review of the force 
        structure that is more comprehensive than prior assessments of 
        the force structure, extends beyond the quadrennial defense 
        review, and explores innovative and forward-thinking ways of 
        meeting such challenges.

SEC. 923. QUADRENNIAL DEFENSE REVIEW.

    (a) Requirement in 1997.--The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall complete in 1997 a 
review of the defense program of the United States intended to satisfy 
the requirements for a Quadrennial Defense Review as identified in the 
recommendations of the Commission on Roles and Missions of the Armed 
Forces. The review shall include a comprehensive examination of the 
defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense program 
and policies with a view toward determining and expressing the defense 
strategy of the United States and establishing a revised defense program 
through the year 2005.

[[Page 110 STAT. 2625]]

    (b) Involvement of National Defense Panel.--(1) The Secretary shall 
apprise the National Defense Panel established under section 924, on an 
ongoing basis, of the work undertaken in the conduct of the review.
    (2) Not later than March 14, 1997, the Chairman of the National 
Defense Panel shall submit to the Secretary the Panel's assessment of 
work undertaken in the conduct of the review as of that date and shall 
include in the assessment the recommendations of the Panel for 
improvements to the review, including recommendations for additional 
matters to be covered in the review.
    (c) Assessments of Review.--Upon completion of the review, the 
Chairman of the Joint Chiefs of Staff and the Chairman of the National 
Defense Panel, on behalf of the Panel, shall each prepare and submit to 
the Secretary such Chairman's assessment of the review in time for the 
inclusion of the assessment in its entirety in the report under 
subsection (d).
    (d) Report.--Not later than May 15, 1997, the Secretary shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a comprehensive report 
on the review. The report shall include the following:
            (1) The results of the review, including a comprehensive 
        discussion of the defense strategy of the United States and the 
        force structure best suited to implement that strategy.
            (2) The threats examined for purposes of the review and the 
        scenarios developed in the examination of such threats.
            (3) The assumptions used in the review, including 
        assumptions relating to the cooperation of allies and mission-
        sharing, levels of acceptable risk, warning times, and intensity 
        and duration of conflict.
            (4) The effect on the force structure of preparations for 
        and participation in peace operations and military operations 
        other than war.
            (5) The effect on the force structure of the utilization by 
        the Armed Forces of technologies anticipated to be available by 
        the year 2005, including precision guided munitions, stealth, 
        night vision, digitization, and communications, and the changes 
        in doctrine and operational concepts that would result from the 
        utilization of such technologies.
            (6) The manpower and sustainment policies required under the 
        defense strategy to support engagement in conflicts lasting more 
        than 120 days.
            (7) The anticipated roles and missions of the reserve 
        components in the defense strategy and the strength, 
        capabilities, and equipment necessary to assure that the reserve 
        components can capably discharge those roles and missions.
            (8) The appropriate ratio of combat forces to support forces 
        (commonly referred to as the ``tooth-to-tail'' ratio) under the 
        defense strategy, including, in particular, the appropriate 
        number and size of headquarter units and Defense Agencies for 
        that purpose.
            (9) The air-lift and sea-lift capabilities required to 
        support the defense strategy.
            (10) The forward presence, pre-positioning, and other 
        anticipatory deployments necessary under the defense strategy 
        for conflict deterrence and adequate military response to 
        anticipated conflicts.

[[Page 110 STAT. 2626]]

            (11) The extent to which resources must be shifted among two 
        or more theaters under the defense strategy in the event of 
        conflict in such theaters.
            (12) The advisability of revisions to the Unified Command 
        Plan as a result of the defense strategy.
            (13) Any other matter the Secretary considers appropriate.

SEC. 924. NATIONAL DEFENSE PANEL.

    (a) Establishment.--Not later than December 1, 1996, the Secretary 
of Defense shall establish a nonpartisan, independent panel to be known 
as the National Defense Panel (in this section referred to as the 
``Panel''). The Panel shall have the duties set forth in this section.
    (b) Membership.--The Panel shall be composed of a chairman and eight 
other individuals appointed by the Secretary, in consultation with the 
chairman and ranking member of the Committee on Armed Services of the 
Senate and the chairman and ranking member of the Committee on National 
Security of the House of Representatives, from among individuals in the 
private sector who are recognized experts in matters relating to the 
national security of the United States.
    (c) Duties.--The Panel shall--
            (1) conduct and submit to the Secretary the assessment of 
        the review under section 923 that is required by subsection 
        (b)(2) of that section;
            (2) conduct and submit to the Secretary the comprehensive 
        assessment of the review that is required by subsection (c) of 
        that section upon completion of the review; and
            (3) conduct the assessment of alternative force structures 
        for the Armed Forces required under subsection (d).

    (d) Alternative Force Structure Assessment.--(1) The Panel shall 
submit to the Secretary an independent assessment of a variety of 
possible force structures of the Armed Forces through the year 2010 and 
beyond, including the force structure identified in the report on the 
review under section 923(d). The purpose of the assessment is to develop 
proposals for an ``above the line'' force structure of the Armed Forces 
and to provide the Secretary and Congress recommendations regarding the 
optimal force structure to meet anticipated threats to the national 
security of the United States through the time covered by the 
assessment.
    (2) In conducting the assessment, the Panel shall examine a variety 
of potential threats (including near-term threats and long-term threats) 
to the national security interests of the United States, including the 
following:
            (A) Conventional threats across a spectrum of conflicts.
            (B) The proliferation of weapons of mass destruction and the 
        means of delivering such weapons, and the illicit transfer of 
        technology relating to such weapons.
            (C) The vulnerability of United States technology to 
        nontraditional threats, including information warfare.
            (D) Domestic and international terrorism.
            (E) The emergence of a major potential adversary having 
        military capabilities similar to those of the United States.
            (F) Any other significant threat, or combination of threats, 
        identified by the Panel.

[[Page 110 STAT. 2627]]

    (3) For purposes of the assessment, the Panel shall develop a 
variety of scenarios requiring a military response by the United States, 
including the following:
            (A) Scenarios developed in light of the threats examined 
        under paragraph (2).
            (B) Scenarios developed in light of a continuum of conflicts 
        ranging from a conflict of lesser magnitude than the conflict 
        described in the Bottom-Up Review to a conflict of greater 
        magnitude than the conflict so described.

    (4) As part of the assessment, the Panel shall also--
            (A) develop recommendations regarding a variety of force 
        structures for the Armed Forces that permit the forward 
        deployment of sufficient air, land, and sea-based forces to 
        provide an effective deterrent to conflict and to permit a 
        military response by the United States to the scenarios 
        developed under paragraph (3);
            (B) to the extent practicable, estimate the funding required 
        by fiscal year, in constant fiscal year 1997 dollars, to 
        organize, equip, and support the forces contemplated under the 
        force structures assessed in the assessment; and
            (C) comment on each of the matters also to be included by 
        the Secretary in the report required by section 923(d).

    (e) Report.--(1) Not later than December 1, 1997, the Panel shall 
submit to the Secretary a report setting forth the activities and the 
findings and recommendations of the Panel under subsection (d), 
including any recommendations for legislation that the Panel considers 
appropriate.
    (2) Not later than December 15, 1997, the Secretary shall, after 
consultation with the Chairman of the Joint Chiefs of Staff, submit to 
the committees referred to in subsection (b) a copy of the report under 
paragraph (1), together with the Secretary's comments on the report.
    (f) Information From Federal Agencies.--The Panel may secure 
directly from the Department of Defense and any of its components and 
from any other Federal department and agency such information as the 
Panel considers necessary to carry out its duties under this section. 
The head of the department or agency concerned shall ensure that 
information requested by the Panel under this subsection is promptly 
provided.
    (g) Personnel Matters.--(1) Each member of the Panel shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Panel.
    (2) The members of the Panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Panel.
    (3)(A) The chairman of the Panel may, without regard to the civil 
service laws and regulations, appoint and terminate an executive 
director, and a staff of not more than four additional individuals, if 
the Panel determines that an executive director and staff are necessary 
in order for the Panel to perform its duties effectively. The employment 
of an executive director shall be subject to confirmation by the Panel.

[[Page 110 STAT. 2628]]

    (B) The chairman may fix the compensation of the executive director 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classification of 
positions and General Schedule pay rates, except that the rate of pay 
for the executive director may not exceed the rate payable for level V 
of the Executive Schedule under section 5316 of such title.
    (4) Any Federal Government employee may be detailed to the Panel 
without reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. The Secretary shall ensure 
that sufficient personnel are detailed to the Panel to enable the Panel 
to carry out its duties effectively.

    (5) To the maximum extent practicable, the members and employees of 
the Panel shall travel on military aircraft, military ships, military 
vehicles, or other military conveyances when travel is necessary in the 
performance of a duty of the Panel, except that no such aircraft, ship, 
vehicle, or other conveyance may be scheduled primarily for the 
transportation of any such member or employee when the cost of 
commercial transportation is less expensive.
    (h) Administrative Provisions.--(1) The Panel may use the United 
States mails and obtain printing and binding services in the same manner 
and under the same conditions as other departments and agencies of the 
Federal Government.
    (2) The Secretary shall furnish the Panel any administrative and 
support services requested by the Panel.
    (3) The Panel may accept, use, and dispose of gifts or donations of 
services or property.
    (i) Payment of Panel Expenses.--The compensation, travel expenses, 
and per diem allowances of members and employees of the Panel shall be 
paid out of funds available to the Department of Defense for the payment 
of compensation, travel allowances, and per diem allowances, 
respectively, of civilian employees of the Department. The other 
expenses of the Panel shall be paid out of funds available to the 
Department for the payment of similar expenses incurred by the 
Department.
    (j) Termination.--The Panel shall terminate 30 days after the date 
on which the Panel submits its report to the Secretary under subsection 
(e).

SEC. 925. POSTPONEMENT OF DEADLINES.

    If the Presidential election in 1996 results in the election of a 
new President, each deadline set forth in this subtitle shall be 
postponed by three months.

SEC. 926. DEFINITIONS.

    In this subtitle:
            (1) The term `` `above the line' force structure of the 
        Armed Forces'' means the force structure (including numbers, 
        strengths, and composition and major items of equipment) for the 
        Armed Forces at the following unit levels:
                    (A) In the case of the Army, the division.
                    (B) In the case of the Navy, the battle group.
                    (C) In the case of the Air Force, the wing.
                    (D) In the case of the Marine Corps, the 
                expeditionary force.
                    (E) In the case of special operations forces of the 
                Army, Navy, or Air Force, the major operating unit.

[[Page 110 STAT. 2629]]

                    (F) In the case of the strategic forces, the 
                ballistic missile submarine fleet, the heavy bomber 
                force, and the intercontinental ballistic missile force.
            (2) The term ``Commission on Roles and Missions of the Armed 
        Forces'' means the Commission on Roles and Missions of the Armed 
        Forces established by subtitle E of title IX of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 107 Stat. 1738; 10 U.S.C. 111 note).
            (3) The term ``military operation other than war'' means any 
        operation other than war that requires the utilization of the 
        military capabilities of the Armed Forces, including peace 
        operations, humanitarian assistance operations and activities, 
        counter-terrorism operations and activities, disaster relief 
        activities, and counter-drug operations and activities.
            (4) The term ``peace operations'' means military operations 
        in support of diplomatic efforts to reach long-term political 
        settlements of conflicts and includes peacekeeping operations 
        and peace enforcement operations.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of certain unauthorized fiscal year 
                      1996 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations 
                      for fiscal year 1996.
Sec. 1005. Format for budget requests for Navy/Marine Corps and Air 
                      Force ammunition accounts.
Sec. 1006. Format for annual budget requests for Defense Airborne 
                      Reconnaissance Program.
Sec. 1007. Limitation on use of Department of Defense funds transferred 
                      to the Coast Guard.
Sec. 1008. Fisher House Trust Fund for the Department of the Navy.
Sec. 1009. Designation and liability of disbursing and certifying 
                      officials for the Coast Guard.
Sec. 1010. Authority to suspend or terminate collection actions against 
                      deceased members of the Coast Guard.
Sec. 1011. Department of Defense disbursing official check cashing and 
                      exchange transactions.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of 
                      contracts for phased maintenance of AE class 
                      ships.
Sec. 1022. Funding for second and third maritime prepositioning ships 
                      out of 
                      National Defense Sealift Fund.
Sec. 1023. Transfer of certain obsolete tugboats of the Navy.
Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.
Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

                   Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
                      activities of Mexico.
Sec. 1032. Availability of funds for certain drug interdiction and 
                      counter-drug 
                      activities.
Sec. 1033. Transfer of excess personal property to support law 
                      enforcement 
                      activities.
Sec. 1034. Sale by Federal departments or agencies of chemicals used to 
                      manufacture controlled substances.

                     Subtitle D--Reports and Studies

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

[[Page 110 STAT. 2630]]

Sec. 1042. Annual report on emerging operational concepts.
Sec. 1043. Report on Department of Defense military child care programs.
Sec. 1044. Report on Department of Defense military youth programs.
Sec. 1045. Quarterly reports regarding coproduction agreements.
Sec. 1046. Report on witness interview procedures for Department of 
                      Defense criminal investigations.
Sec. 1047. Report on military readiness requirements of the Armed 
                      Forces.
Sec. 1048. Report on NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.
Sec. 1052. Acceptance of uncompensated services.
Sec. 1053. Disposal of tract of real property in the District of 
                      Columbia.

                        Subtitle F--Other Matters

Sec. 1061. Policy on protection of national information infrastructure 
                      against 
                      strategic attack.
Sec. 1062. Information systems security program.
Sec. 1063. Authority to accept services from foreign governments and 
                      international organizations for defense purposes.
Sec. 1064. Prohibition on collection and release of detailed satellite 
                      imagery 
                      relating to Israel.
Sec. 1065. George C. Marshall European Center for Strategic Security 
                      Studies.
Sec. 1066. Authority to award to civilian participants in the defense of 
                      Pearl 
                      Harbor the Congressional Medal previously 
                      authorized only for 
                      military participants in the defense of Pearl 
                      Harbor.
Sec. 1067. Assimilative crimes authority for traffic offenses on 
                      military installations.
Sec. 1068. Uniform Code of Military Justice amendments.
Sec. 1069. Punishment of interstate stalking.
Sec. 1070. Participation of members, dependents, and other persons in 
                      crime 
                      prevention efforts at installations.
Sec. 1071. Display of State flags at installations and facilities of the 
                      Department of Defense.
Sec. 1072. Treatment of excess operational support airlift aircraft.
Sec. 1073. Correction to statutory references to certain Department of 
                      Defense 
                      organizations.
Sec. 1074. Technical and clerical amendments.
Sec. 1075. Modification to third-party liability to United States for 
                      tortious infliction of injury or disease on 
                      members of the uniformed services.
Sec. 1076. Chemical Stockpile Emergency Preparedness Program.
Sec. 1077. Exemption from requirements applicable to savings 
                      associations for 
                      certain savings institutions serving military 
                      personnel.
Sec. 1078. Improvements to National Security Education Program.
Sec. 1079. Aviation and vessel war risk insurance.
Sec. 1080. Designation of memorial as National D-Day Memorial.
Sec. 1081. Sense of Congress regarding semiconductor trade agreement 
                      between United States and Japan.
Sec. 1082. Agreements for exchange of defense personnel between the 
                      United States and foreign countries.
Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.
Sec. 1084. Defense burdensharing.

                      Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination by 
the Secretary of Defense that such action is necessary in the national 
interest, the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for fiscal year 
1997 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary of Defense 
may transfer under the authority of this section may not exceed 
$2,000,000,000.

[[Page 110 STAT. 2631]]

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

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. <<NOTE: 10 USC 114 note.>> INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee of conference to accompany the conference report on the 
bill H.R. 3230 of the One Hundred Fourth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and requirements 
as are set out for that program, project, or activity in the Classified 
Annex.

    (d) Distribution <<NOTE: President.>> of Classified Annex.--The 
President shall provide for appropriate distribution of the Classified 
Annex, or of appropriate portions of the annex, within the executive 
branch of the Government.
SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL 
                          YEAR 1996 DEFENSE APPROPRIATIONS.

    (a) Authority.--The amounts described in subsection (b) may be 
obligated and expended for programs, projects, and activities of the 
Department of Defense in accordance with fiscal year 1996 defense 
appropriations.
    (b) Covered Amounts.--The amounts referred to in subsection (a) are 
the amounts provided for programs, projects, and activities of the 
Department of Defense in fiscal year 1996 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1996 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1996 defense appropriations.--The term 
        ``fiscal year 1996 defense appropriations'' means amounts 
        appropriated or otherwise made available to the Department of 
        Defense for fiscal year 1996 in the Department of Defense 
        Appropriations Act, 1996 (Public Law 104-61).
            (2) Fiscal year 1996 defense authorizations.--The term 
        ``fiscal year 1996 defense authorizations'' means amounts 
        authorized to be appropriated for the Department of Defense

[[Page 110 STAT. 2632]]

        for fiscal year 1996 in the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106).
SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL 
                          APPROPRIATIONS FOR FISCAL YEAR 1996.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 1996 in the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-
134).
SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE CORPS AND 
                          AIR FORCE AMMUNITION ACCOUNTS.

    Section 114 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(f) In each budget submitted by the President to Congress under 
section 1105 of title 31, amounts requested for procurement of 
ammunition for the Navy and Marine Corps, and for procurement of 
ammunition for the Air Force, shall be set forth separately from other 
amounts requested for procurement.''.
SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE AIRBORNE 
                          RECONNAISSANCE PROGRAM.

    (a) Separate Display Required.--The Secretary of Defense shall 
ensure that in the budget justification documents for any fiscal year 
there are set forth separately the amount requested for research, 
development, test, and evaluation, and the amount requested for 
procurement, for each program area within the Defense Airborne 
Reconnaissance Program.
    (b) Program Areas Within Defense Airborne Reconnaissance Program.--
For purposes of subsection (a), the programs of the Defense Airborne 
Reconnaissance Program shall be categorized as being within one of the 
following areas:
            (1) Tactical unmanned aerial vehicles.
            (2) Endurance unmanned aerial vehicles.
            (3) Airborne reconnaissance systems.
            (4) Manned reconnaissance systems.
            (5) Distributed common ground systems.
            (6) Any additional program area established by the Secretary 
        of Defense.

    (c) Budget Justification Documents.--For purposes of subsection (a), 
the term ``budget justification documents'' means the supporting budget 
documentation submitted to the congressional defense committees in 
support of the budget of the Department of Defense for a fiscal year as 
included in the budget of the President submitted under section 1105 of 
title 31, United States Code, for that fiscal year.
SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
                          TRANSFERRED TO THE COAST GUARD.

    (a) Limitation to National Security Functions.--Funds appropriated 
to the Department of Defense for fiscal year 1997 that are transferred 
pursuant to law to the Coast Guard may be used only for the performance 
of national security functions of the Coast Guard in support of the 
Department of Defense.

[[Page 110 STAT. 2633]]

    (b) Certification Required.--Funds appropriated to the Department of 
Defense for fiscal year 1997 may not be transferred to the Coast Guard 
until the Secretary of Defense and the Secretary of Transportation 
jointly certify to Congress that the funds so transferred will be used 
only in accordance with the limitation in subsection (a).
    (c) Periodic GAO Audits.--The Comptroller General of the United 
States shall--
            (1) audit, from time to time, the use of funds transferred 
        to the Coast Guard from appropriations for the Department of 
        Defense for fiscal year 1997 in order to verify that those funds 
        are being used in accordance with the limitation in subsection 
        (a); and
            (2) <<NOTE: Notification.>> notify the congressional defense 
        committees of any use of those funds that, in the judgment of 
        the Comptroller General, is a violation of that limitation.
SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF THE NAVY.

    (a) Authority.--Section 2221 of title 10, United States Code, is 
amended--
            (1) by adding at the end of subsection (a) the following:
            ``(3) The Fisher House Trust Fund, Department of the 
        Navy.'';
            (2) in subsection (c)--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph (3):

    ``(3) Amounts in the Fisher House Trust Fund, Department of the 
Navy, that are attributable to earnings or gains realized from 
investments shall be available for the operation and maintenance of 
Fisher houses that are located in proximity to medical treatment 
facilities of the Navy.''; and
            (3) in subsection (d)(1), by striking out ``or the Air 
        Force'' and inserting in lieu thereof ``, the Air Force, or the 
        Navy''.

    (b) Corpus <<NOTE: 10 USC 2221 note.>> of Trust Funds.--The 
Secretary of the Navy shall transfer to the Fisher House Trust Fund, 
Department of the Navy, established by section 2221(a)(3) of title 10, 
United States Code (as added by subsection (a)(1)), all amounts in the 
accounts for Navy installations and other facilities that, as of the 
date of the enactment of this Act, are available for operation and 
maintenance of Fisher houses, as defined in section 2221(d) of such 
title.

    (c) Conforming Amendments.--Section 1321 of title 31, United States 
Code, is amended--
            (1) by adding at the end of subsection (a) the following:
            ``(94) Fisher House Trust Fund, Department of the 
        Navy.''; and
            (2) by adding at the end of subsection (b)(2) the following:
            ``(D) Fisher House Trust Fund, Department of the Navy.''.
SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND 
                          CERTIFYING OFFICIALS FOR THE COAST 
                          GUARD.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United 
States Code, is amended by adding at the end the following:
            ``(3) The Department of Transportation (with respect to 
        public money available for expenditure by the Coast Guard when 
        it is not operating as a service in the Navy).''.

[[Page 110 STAT. 2634]]

    (2)(A) Chapter 17 of title 14, United States Code, is amended by 
adding at the end the following new section:
``Sec. 673. Designation, powers, and accountability of deputy 
                  disbursing officials

    ``(a)(1) Subject to paragraph (3), a disbursing official of the 
Coast Guard may designate a deputy disbursing official--
            ``(A) to make payments as the agent of the disbursing 
        official;
            ``(B) to sign checks drawn on disbursing accounts of the 
        Secretary of the Treasury; and
            ``(C) to carry out other duties required under law.

    ``(2) The penalties for misconduct that apply to a disbursing 
official apply to a deputy disbursing official designated under this 
subsection.
    ``(3) A disbursing official may make a designation under paragraph 
(1) only with the approval of the Secretary of Transportation (when the 
Coast Guard is not operating as a service in the Navy).
    ``(b)(1) If a disbursing official of the Coast Guard dies, becomes 
disabled, or is separated from office, a deputy disbursing official may 
continue the accounts and payments in the name of the former disbursing 
official until the last day of the second month after the month in which 
the death, disability, or separation occurs. The accounts and payments 
shall be allowed, audited, and settled as provided by law. The Secretary 
of the Treasury shall honor checks signed in the name of the former 
disbursing official in the same way as if the former disbursing official 
had continued in office.
    ``(2) The deputy disbursing official, and not the former disbursing 
official or the estate of the former disbursing official, is liable for 
the actions of the deputy disbursing official under this subsection.
    ``(c)(1) Except as provided in paragraph (2), this section does not 
apply to the Coast Guard when section 2773 of title 10 applies to the 
Coast Guard by reason of the operation of the Coast Guard as a service 
in the Navy.
    ``(2) A designation of a deputy disbursing official under subsection 
(a) that is made while the Coast Guard is not operating as a service in 
the Navy continues in effect for purposes of section 2773 of title 10 
while the Coast Guard operates as a service in the Navy unless and until 
the designation is terminated by the disbursing official who made the 
designation or an official authorized to approve such a designation 
under subsection (a)(3) of such section.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``673. Designation, powers, and accountability of deputy disbursing 
           officials.''.

    (b) Designation of Members of the Armed Forces To Have Authority To 
Certify Vouchers.--Section 3325(b) of title 31, United States Code, is 
amended by striking out ``members of the armed forces under the 
jurisdiction of the Secretary of Defense may certify vouchers when 
authorized, in writing, by the Secretary to do so'' and inserting in 
lieu thereof ``members of the armed forces may certify vouchers when 
authorized, in writing, by the Secretary of Defense or, in the case of 
the Coast Guard when it is not operating as a service in the Navy, by 
the Secretary of Transportation''.

[[Page 110 STAT. 2635]]

    (c) Conforming Amendments.--(1) Section 1007(a) of title 37, United 
States Code, is amended by inserting after ``Secretary of Defense'' the 
following: ``(or the Secretary of Transportation, in the case of an 
officer of the Coast Guard when the Coast Guard is not operating as a 
service in the Navy)''.
    (2) Section 3527(b)(1) of title 31, United States Code, is 
amended--
            (A) in subparagraph (A)(i), by inserting after ``Department 
        of Defense'' the following: ``(or the Secretary of 
        Transportation, in the case of a disbursing official of the 
        Coast Guard when the Coast Guard is not operating as a service 
        in the Navy)''; and
            (B) in subparagraph (B), by inserting after ``or the 
        Secretary of the appropriate military department'' the 
        following: ``(or the Secretary of Transportation, in the case of 
        a disbursing official of the Coast Guard when the Coast Guard is 
        not operating as a service in the Navy)''.
SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION ACTIONS 
                          AGAINST DECEASED MEMBERS OF THE COAST 
                          GUARD.

    Section 3711(g) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking out ``or Marine Corps'' 
        and inserting in lieu thereof ``Marine Corps, or Coast Guard 
        during a period when the Coast Guard is operating as a service 
        in the Navy'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The Secretary of Transportation may suspend or terminate an 
action by the Secretary under subsection (a) to collect a claim against 
the estate of a person who died while serving on active duty as a member 
of the Coast Guard if the Secretary determines that, under the 
circumstances applicable with respect to the deceased person, it is 
appropriate to do so.''.
SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK CASHING 
                          AND EXCHANGE TRANSACTIONS.

    Section 3342(b) of title 31, United States Code, is amended--
            (1) by striking out the period at the end of paragraph (3) 
        and inserting in lieu thereof a semicolon;
            (2) by striking out ``and'' at the end of paragraph (5);
            (3) by striking out the period at the end of paragraph (6) 
        and inserting in lieu thereof ``; or''; and
            (4) by adding at the end the following new paragraph:
            ``(7) a Federal credit union (as defined in section 101(1) 
        of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at the 
        request of the Secretary of Defense is operating on a United 
        States military installation in a foreign country, but only if 
        that country does not permit contractor-operated military 
        banking facilities to operate on such installations.''.

[[Page 110 STAT. 2636]]

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY OF 
                          CONTRACTS FOR PHASED MAINTENANCE OF AE 
                          CLASS SHIPS.

    Section 1016 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed.
SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME PREPOSITIONING 
                          SHIPS OUT OF NATIONAL DEFENSE SEALIFT 
                          FUND.

    (a) National Defense Sealift Fund.--To the extent provided in 
appropriations Acts, funds in the National Defense Sealift Fund may be 
obligated and expended for the purchase and conversion, or construction, 
of a total of three ships for the purpose of enhancing Marine Corps 
prepositioning ship squadrons.
    (b) Authorization of Appropriations.--Of the amount authorized to be 
appropriated under section 302(2), $240,000,000 is authorized to be 
appropriated for the purpose stated in subsection (a).

SEC. 1023. <<NOTE: Wisconsin.>> TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF 
            THE NAVY.

    (a) Requirement To Transfer Vessels.--The Secretary of the Navy 
shall transfer the six obsolete tugboats of the Navy specified in 
subsection (b) to the Northeast Wisconsin Railroad Transportation 
Commission, an instrumentality of the State of Wisconsin, if the 
Secretary determines that the tugboats are not needed for transfer, 
donation, or other disposal under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
    (b) Vessels Covered.--The requirement in subsection (a) applies to 
the six decommissioned Cherokee class tugboats, listed as of the date of 
the enactment of this Act as being surplus to the Navy, that are 
designated
as ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160.

    (c) Condition Relating to Environmental Compliance.--The Secretary 
shall require as a condition of the transfer of a vessel under 
subsection (a) that use of the vessel by the Commission not commence 
until the terms of any necessary environmental compliance letter or 
agreement with respect to that vessel have been complied with.
    (d) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions (including a requirement that the 
transfer be at no cost to the Government) in connection with the 
transfers required by subsection (a) as the Secretary considers 
appropriate.
SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO, 
                          CALIFORNIA.

    (a) Transfer.--The Secretary of the Navy shall transfer the U.S.S. 
Drum (SSN-677) to the city of Vallejo, California, in accordance with 
this section and upon satisfactory completion of a ship donation 
application. Before making such transfer, the Secretary of the Navy 
shall remove from the vessel the reactor compartment and other 
classified and sensitive military equipment.

[[Page 110 STAT. 2637]]

    (b) Funding.--As provided in section 7306(c) of title 10, United 
States Code, the transfer of the vessel authorized by this section shall 
be made at no cost to the United States (beyond the cost which the 
United States would otherwise incur for dismantling and recycling of the 
vessel).
    (c) Applicable Law.--The transfer under this section shall be 
subject to subsection (b) of section 7306 of title 10, United States 
Code, but the provisions of subsection (d) of such section shall not be 
applicable to such transfer.

SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102).

    It is the sense of Congress that the Secretary of Defense should use 
existing authorities in law to seek the expeditious return, upon 
completion of service, of the former USS LCS
102 (LSSL 102) from the Government of Thailand in order for the ship to 
be transferred to the United States Shipbuilding Museum in Quincy, 
Massachusetts.

                   Subtitle C--Counter-Drug Activities

SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-
                          DRUG ACTIVITIES OF MEXICO.

    (a) Authority To Provide Additional Support.--Subject to subsection 
(e), during fiscal year 1997, the Secretary of Defense may provide the 
Government of Mexico with the support described in subsection (b) for 
the counter-drug activities of the Government of Mexico. The support 
provided under the authority of this subsection shall be in addition to 
support provided to the Government of Mexico under any other provision 
of law.
    (b) Types of Support.--The authority under subsection (a) is limited 
to the provision of the following types of support:
            (1) The transfer of nonlethal protective and utility per- 
        sonnel equipment.
            (2) The transfer of the following nonlethal specialized 
        equipment:
                    (A) Navigation equipment.
                    (B) Secure and nonsecure communications equipment.
                    (C) Photo equipment.
                    (D) Radar equipment.
                    (E) Night vision systems.
                    (F) Repair equipment and parts for equipment 
                referred to in subparagraphs (A), (B), (C), (D), and 
                (E).
            (3) The transfer of nonlethal components, accessories, 
        attachments, parts (including ground support equipment), 
        firmware, and software for aircraft or patrol boats, and related 
        repair equipment.
            (4) The maintenance and repair of equipment of the 
        Government of Mexico that is used for counter-drug activities.

    (c) Applicability of Other Support Authorities.--Except as otherwise 
provided in this section, the provisions of section 1004 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 
U.S.C. 374 note) shall apply to the provision of support under this 
section.
    (d) Funding.--Of the amount authorized to be appropriated under 
section 301(19) for drug interdiction and counter-drug activi

[[Page 110 STAT. 2638]]

ties, not more than $8,000,000 shall be available for the provision of 
support under this section.
    (e) Limitations.--(1) <<NOTE: Certification.>> The Secretary may not 
obligate or expend funds to provide support under this section until 15 
days after the date on which the Secretary submits to the committees 
referred to in paragraph (3) the certification described in paragraph 
(2).

    (2) The certification referred to in paragraph (1) is a written 
certification of the following:
            (A) That the provision of support under this section will 
        not adversely affect the military preparedness of the United 
        States Armed Forces.
            (B) That the equipment and materiel provided as support will 
        be used only by officials and employees of the Government of 
        Mexico who have undergone a background check by that government.
            (C) That the Government of Mexico has certified to the 
        Secretary that--
                    (i) the equipment and material provided as support 
                will be used only by the officials and employees 
                referred to in subparagraph (B);
                    (ii) none of the equipment or materiel will be 
                transferred (by sale, gift, or otherwise) to any person 
                or entity not authorized by the United States to receive 
                the equipment or materiel; and
                    (iii) the equipment and materiel will be used only 
                for the purposes intended by the United States 
                Government.
            (D) That the Government of Mexico has implemented, to the 
        satisfaction of the Secretary, a system that will provide an 
        accounting and inventory of the equipment and materiel provided 
        as support.
            (E) That the departments, agencies, and instrumentalities of 
        the Government of Mexico will grant United States Government 
        personnel access to any of the equipment or materiel provided as 
        support, or to any of the records relating to such equipment or 
        materiel, under terms and conditions similar to the terms and 
        conditions imposed with respect to such access under section 
        505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2314(a)(3)).
            (F) That the Government of Mexico will provide security with 
        respect to the equipment and materiel provided as support that 
        is substantially the same degree of security that the United 
        States Government would provide with respect to such equipment 
        and materiel.
            (G) That the Government of Mexico will permit continuous 
        observation and review by United States Government personnel of 
        the use of the equipment and materiel provided as support under 
        terms and conditions similar to the terms and conditions imposed 
        with respect to such observation and review under section 
        505(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2314(a)(3)).

    (3) The committees referred to in this paragraph are the following:
            (A) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            (B) The Committee on National Security and the Committee on 
        International Relations of the House of Representatives.

[[Page 110 STAT. 2639]]

SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDICTION AND 
                          COUNTER-DRUG ACTIVITIES.

    (a) P-3B Aircraft.--Of the funds authorized to be appropriated under 
section 301(19) for drug interdiction and counter-drug activities, not 
more than $98,000,000 may be used for the purpose of procuring or 
modifying two P-3B aircraft for use by departments and agencies of the 
United States outside the Department of Defense for drug interdiction 
and counter-drug activities. <<NOTE: Certification.>> However, funds may 
not be obligated for such purpose until the Secretary of Defense submits 
to the congressional defense committees a certification that the 
procurement or modification of such aircraft and the use of such 
aircraft by other departments or agencies of the United States will 
significantly reduce the level of support that would otherwise be 
required of E-3 AWACS aircraft as part of the drug interdiction and 
counter-drug mission of the Department of Defense.

    (b) Nonintrusive Inspection Devices.--Of the funds authorized to be 
appropriated under section 301(19) for drug interdiction and counter-
drug activities, not more than $10,000,000 may be used to procure three 
nonintrusive inspection devices for use by departments and agencies of 
the United States outside the Department of Defense for drug 
interdiction and counter-drug activities.
    (c) Authority To Transfer Equipment.--The Secretary of Defense may 
transfer to the head of any department or agency of the United States 
outside the Department of Defense any equipment procured or modified 
under this section with funds referred to in this section.
SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT LAW 
                          ENFORCEMENT ACTIVITIES.

    (a) Transfer Authority.--(1) Chapter 153 of title 10, United States 
Code, is amended by inserting after section 2576 the following new 
section:
``Sec. 2576a. Excess personal property: sale or donation for law 
                      enforcement activities

    ``(a) Transfer Authorized.--(1) Notwithstanding any other provision 
of law and subject to subsection (b), the Secretary of Defense may 
transfer to Federal and State agencies personal property of the 
Department of Defense, including small arms and ammunition, that the 
Secretary determines is--
            ``(A) suitable for use by the agencies in law enforcement 
        activities, including counter-drug and counter-terrorism 
        activities; and
            ``(B) excess to the needs of the Department of Defense.

    ``(2) The Secretary shall carry out this section in consultation 
with the Attorney General and the Director of National Drug Control 
Policy.
    ``(b) Conditions for Transfer.--The Secretary of Defense may 
transfer personal property under this section only if--
            ``(1) the property is drawn from existing stocks of the 
        Department of Defense;
            ``(2) the recipient accepts the property on an as-is, where-
        is basis;
            ``(3) the transfer is made without the expenditure of any 
        funds available to the Department of Defense for the procurement 
        of defense equipment; and

[[Page 110 STAT. 2640]]

            ``(4) all costs incurred subsequent to the transfer of the 
        property are borne or reimbursed by the recipient.

    ``(c) Consideration.--Subject to subsection (b)(4), the Secretary 
may transfer personal property under this section without charge to the 
recipient agency.
    ``(d) Preference for Certain Transfers.--In considering applications 
for the transfer of personal property under this section, the Secretary 
shall give a preference to those applications indicating that the 
transferred property will be used in the counter-drug or counter-
terrorism activities of the recipient agency.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2576 the 
following new item:

``2576a. Excess personal property: sale or donation for law enforcement 
           activities.''.

    (b) Conforming Amendments.--(1) Section 1208 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 10 
U.S.C. 372 note) is repealed.
    (2) Section 1005 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is 
amended by striking out ``section 1208 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372 note) 
and section 372'' and inserting in lieu thereof ``sections 372 and 
2576a''.
SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF 
                          CHEMICALS USED TO MANUFACTURE CONTROLLED 
                          SUBSTANCES.

    (a) DEA Certification.--The Controlled Substances Act is amended by 
inserting after section 519 (21 U.S.C. 889) the following new section:
``SEC. 520. REVIEW <<NOTE: 21 USC 890.>> OF FEDERAL SALES OF 
                          CHEMICALS USABLE TO MANUFACTURE 
                          CONTROLLED SUBSTANCES.

    ``A Federal department or agency may not sell from the stocks of the 
department or agency any chemical which, as determined by the 
Administrator of the Drug Enforcement Administration, could be used in 
the manufacture of a controlled substance unless the Administrator 
certifies in writing to the head of the department or agency that there 
is no reasonable cause to believe that the sale of the chemical would 
result in the illegal manufacture of a controlled substance.''.

    (b) Clerical Amendment.--The table of contents of the Comprehensive 
Drug Abuse Prevention and Control Act of 1970 (84 Stat. 1236) is amended 
by inserting after the item relating to section 519 the following new 
item:

``Sec. 520. Review of Federal sales of chemicals usable to manufacture 
           controlled substances.''.

                     Subtitle D--Reports and Studies

SEC. 1041. ANNUAL <<NOTE: 10 USC 113 note.>> REPORT ON OPERATION 
                          PROVIDE COMFORT AND OPERATION ENHANCED 
                          SOUTHERN WATCH.

    (a) Annual Report.--Not later than March 1 of each year, the 
Secretary of Defense shall submit to Congress a report on Operation 
Provide Comfort and Operation Enhanced Southern Watch.

[[Page 110 STAT. 2641]]

    (b) Matters Relating to Operation Provide Comfort.--Each report 
under subsection (a) shall include, with respect to Operation Provide 
Comfort, the following:
            (1) A detailed presentation of the projected costs to be 
        incurred by the Department of Defense for that operation during 
        the fiscal year in which the report is submitted and projected 
        for the following fiscal year, together with a discussion of 
        missions and functions expected to be performed by the 
        Department as part of that operation during each of those fiscal 
        years.
            (2) A detailed presentation of the projected costs to be 
        incurred by other departments and agencies of the Federal 
        Government participating in or providing support to that 
        operation during each of those fiscal years.
            (3) A discussion of options being pursued to reduce the 
        involvement of the Department of Defense in those aspects of 
        that operation that are not directly related to the military 
        mission of the Department of Defense.
            (4) A discussion of the exit strategy for United States 
        involvement in, and support for, that operation.
            (5) A description of alternative approaches to accomplishing 
        the mission of that operation that are designed to limit the 
        scope and cost to the Department of Defense of accomplishing 
        that mission while maintaining mission success.
            (6) The contributions (both in-kind and actual) by other 
        nations to the costs of conducting that operation.
            (7) A detailed presentation of significant Iraqi military 
        activity (including specific violations of the no-fly zone) 
        determined to jeopardize the security of the Kurdish population 
        in northern Iraq.

    (c) Matters Relating to Operation Enhanced Southern Watch.--Each 
report under subsection (a) shall include, with respect to Operation 
Enhanced Southern Watch, the following:
            (1) The expected duration and annual costs of the various 
        elements of that operation.
            (2) The political and military objectives associated with 
        that operation.
            (3) The contributions (both in-kind and actual) by other 
        nations to the costs of conducting that operation.
            (4) A description of alternative approaches to accomplishing 
        the mission of that operation that are designed to limit the 
        scope and cost of accomplishing that mission while maintaining 
        mission success.
            (5) A comprehensive discussion of the political and military 
        objectives and initiatives that the Department of Defense has 
        pursued, and intends to pursue, in order to reduce United States 
        involvement in that operation.
            (6) A detailed presentation of significant Iraqi military 
        activity (including specific violations of the no-fly zone) 
        determined to jeopardize the security of the Shiite population 
        by air attack in southern Iraq or to jeopardize the security of 
        Kuwait.

    (d) Termination of Report Requirement.--The requirement under 
subsection (a) shall cease to apply with respect to an operation named 
in that subsection upon the termination of United States involvement in 
that operation.
    (e) Definitions.--For purposes of this section:

[[Page 110 STAT. 2642]]

            (1) Operation enhanced southern watch.--The term ``Operation 
        Enhanced Southern Watch'' means the operation of the Department 
        of Defense that as of October 30, 1995, is designated as 
        Operation Enhanced Southern Watch.
            (2) Operation provide comfort.--The term ``Operation Provide 
        Comfort'' means the operation of the Department of Defense that 
        as of October 30, 1995, is designated as Operation Provide 
        Comfort.

SEC. 1042. <<NOTE: 10 USC 113 note.>> ANNUAL REPORT ON EMERGING 
            OPERATIONAL CONCEPTS.

    (a) Report Required.--Not later than March 1 of each year through 
2000, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security of the 
House of Representatives a report on emerging operational concepts. Each 
such report shall be prepared by the Secretary in consultation with the 
Chairman of the Joint Chiefs of Staff.
    (b) Matters To Be Included.--Each such report shall contain a 
description, for the year preceding the year in which the report is 
submitted, of the following:
            (1) The process undertaken in the Department of Defense, and 
        in each of the Army, Navy, Air Force, and Marine Corps, to 
        define and develop doctrine, operational concepts, 
        organizational concepts, and acquisition strategies to address--
                    (A) the potential of emerging technologies for 
                significantly improving the operational effectiveness of 
                the Armed Forces;
                    (B) changes in the international order that may 
                necessitate changes in the operational capabilities of 
                the Armed Forces;
                    (C) emerging capabilities of potential adversary 
                states; and
                    (D) changes in defense budget projections.
            (2) The manner in which the processes described in paragraph 
        (1) are harmonized to ensure that there is a sufficient 
        consideration of the development of joint doctrine, operational 
        concepts, and acquisition strategies.
            (3) The manner in which the processes described in paragraph 
        (1) are coordinated through the Joint Requirements Oversight 
        Council and reflected in the planning, programming, and 
        budgeting process of the Department of Defense.
SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD CARE 
                          PROGRAMS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense should be congratulated on the 
        successful implementation of the Military Child Care Act of 1989 
        (originally enacted as title XV of Public Law 101-189 and 
        subsequently codified as subchapter II of chapter 88 of title 
        10, United States Code).
            (2) The actions taken by the Department as a result of that 
        Act have dramatically improved the availability, affordability, 
        quality, and consistency of the child-care services provided to 
        members of the Armed Forces.
            (3) Child care is important to the readiness of members of 
        the Armed Forces since single parents and couples in military 
        service must have access to affordable child care of good 
        quality

[[Page 110 STAT. 2643]]

        if they are to perform their jobs and respond effectively to 
        long work hours or deployments.
            (4) Child care is important to the retention of members of 
        the Armed Forces in military service because the dissatisfaction 
        of the families of such members with military life is a primary 
        reason for the departure of such members from military service.

    (b) Sense of Congress Related to Military-Civilian Child-Care 
Partnership Programs.--It is the sense of Congress that--
            (1) the civilian and military child-care communities, 
        Federal, State, and local agencies, and businesses and 
        communities involved in the provision of child-care services 
        could benefit from the development of partnerships to foster an 
        exchange of ideas, information, and materials relating to their 
        experiences with the provision of such services and to encourage 
        closer relationships between military installations and the 
        communities that support them;
            (2) such partnerships would be beneficial to all families by 
        helping providers of child-care services exchange ideas about 
        innovative ways to address barriers to the effective provision 
        of such services; and
            (3) there are many ways that such partnerships could be 
        developed, including--
                    (A) cooperation between the directors and curriculum 
                specialists of military child development centers and 
                civilian child development centers in assisting such 
                centers in the accreditation process;
                    (B) use of family support staff to conduct parent 
                and family workshops for new parents and parents with 
                young children in family housing on military 
                installations and in communities in the vicinity of such 
                installations;
                    (C) internships in Department of Defense child-care 
                programs for civilian child-care providers to broaden 
                the base of good-quality child-care services in 
                communities in the vicinity of military installations; 
                and
                    (D) attendance by civilian child-care providers at 
                Department child-care training classes on a space-
                available basis.

    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any partnerships and 
other initiatives undertaken by the Department of Defense as described 
in subsection (b), including recommendations for additional ways to 
improve the child-care programs of the Department of Defense and to 
improve such programs so as to benefit civilian child-care providers in 
communities in the vicinity of military installations.
SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH 
                          PROGRAMS.

    (a) Findings.--Congress makes the following findings:
            (1) Programs of the Department of Defense for youth who are 
        dependents of members of the Armed Forces have not received the 
        same level of attention and resources as have child-care 
        programs of the Department since the passage of the Military 
        Child Care Act of 1989 (originally enacted as title XV of Public 
        Law 101-189 and subsequently codified as subchapter II of 
        chapter 88 of title 10, United States Code).

[[Page 110 STAT. 2644]]

            (2) Older children deserve as much attention to their 
        developmental needs as do younger children.
            (3) The Department has started to direct more attention to 
        programs for youths who are dependents of members of the Armed 
        Forces by providing funds for the implementation of 20 model 
        community programs to address the needs of such youths.
            (4) The lessons learned from such programs could apply to 
        civilian youth programs as well.

    (b) Sense of Congress Related to Military-Civilian Youth Partnership 
Programs.--It is the sense of Congress that--
            (1) the Department of Defense, Federal, State, and local 
        agencies, and businesses and communities involved in conducting 
        youth programs could benefit from the development of 
        partnerships to foster an exchange of ideas, information, and 
        materials relating to such programs and to encourage closer 
        relationships between military installations and the communities 
        that support them;
            (2) such partnerships could be beneficial to all families by 
        helping the providers of services for youths exchange ideas 
        about innovative ways to address barriers to the effective 
        provision of such services; and
            (3) there are many ways that such partnerships could be 
        developed, including--
                    (A) cooperation between the Department and Federal 
                and State educational agencies in exploring the use of 
                public school facilities for child-care programs and 
                youth programs that are mutually beneficial to the 
                Department and civilian communities and complement 
                programs of the Department carried out at its 
                facilities; and
                    (B) improving youth programs that enable adolescents 
                to relate to new peer groups when families of members of 
                the Armed Forces are relocated.

    (c) Report.--Not later than June 30, 1997, the Secretary of Defense 
shall submit to Congress a report on the status of any partnerships and 
other initiatives undertaken by the Department as described in 
subsection (b), including recommendations for additional ways to improve 
the youth programs of the Department of Defense and to improve such 
programs so as to benefit communities in the vicinity of military 
installations.
SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION 
                          AGREEMENTS.

    (a) Quarterly Reports on Coproduction Agreements.--Section 36(a) of 
the Arms Export Control Act (22 U.S.C. 2776(a)) is amended--
            (1) by striking out ``and'' at the end of paragraph (10);
            (2) by striking out the period at the end of paragraph (11) 
        and inserting in lieu thereof ``; and''; and
            (3) by inserting after paragraph (11) the following new 
        paragraph:
            ``(12) a report on all concluded government-to-government 
        agreements regarding foreign coproduction of defense articles of 
        United States origin and all other concluded agreements 
        involving coproduction or licensed production outside of the 
        United States of defense articles of United States origin 
        (including coproduction memoranda of understanding or agreement)

[[Page 110 STAT. 2645]]

        that have not been previously reported under this subsection, 
        which shall include--
                    ``(A) the identity of the foreign countries, 
                international organizations, or foreign firms involved;
                    ``(B) a description and the estimated value of the 
                articles authorized to be produced, and an estimate of 
                the quantity of the articles authorized to be produced;
                    ``(C) a description of any restrictions on third-
                party transfers of the foreign-manufactured articles; 
                and
                    ``(D) if any such agreement does not provide for 
                United States access to and verification of quantities 
                of articles produced overseas and their disposition in 
                the foreign country, a description of alternative 
                measures and controls incorporated in the coproduction 
                or licensing program to ensure compliance with 
                restrictions in the agreement on production quantities 
                and third-party transfers.''.

    (b) Effective <<NOTE: 22 USC 2776 note.>> Date.--Paragraph (12) of 
section 36(a) of the Arms Export Control Act, as added by subsection 
(a)(3), does not apply with respect to an agreement described in such 
paragraph entered into before the date of the enactment of this Act.
SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR DEPARTMENT 
                          OF DEFENSE CRIMINAL INVESTIGATIONS.

    (a) Survey of Military Department Policies and Practices.--The 
Comptroller General of the United States shall conduct a survey of the 
policies and practices of the Naval Criminal Investigative Service with 
respect to the manner in which interviews of suspects and witnesses are 
conducted in connection with criminal investigations of allegations of 
contractor fraud. The purpose of the survey shall be to ascertain 
whether or not investigators and agents of the Naval Criminal 
Investigative Service conduct investigations of contractor fraud in 
accordance with generally accepted Federal law enforcement standards and 
applicable law.
    (b) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Comptroller General shall submit to the Committee on 
National Security of the House of Representatives and the Committee on 
Armed Services of the Senate a report concerning the survey under 
subsection (a). The report shall specifically address the following:
            (1) The extent to which investigators of the Naval Criminal 
        Investigative Service investigators and agents of the Naval 
        Criminal Investigative Service conduct investigations of 
        contractor fraud in accordance with generally accepted Federal 
        law enforcement standards and applicable law.
            (2) The extent to which the interview policies established 
        by Department of Defense directives or Navy regulations are 
        adequate to instruct and guide investigators in the proper 
        conduct of subject and witness interviews.
            (3) The desirability and feasibility of providing for video 
        and audio recording of interviews and, if recording is 
        desirable, the circumstances under which recordings should be 
        made.
            (4) The desirability and feasibility of making such 
        recordings or written transcriptions of interviews, or both, 
        available on demand to the subject or witness interviewed.
            (5) The extent to which existing Department of Defense 
        directives and Navy regulations address the carrying and display 
        of weapons by agents, together with an assessment of

[[Page 110 STAT. 2646]]

        whether any change in any such directive or regulation is 
        necessary.
            (6) The extent to which existing Department of Defense 
        directives and Navy regulations provide guidance to agents to 
        ensure that the agents' conduct and demeanor is in accordance 
        with generally accepted Federal law enforcement standards and 
        applicable law.
            (7) Any recommendation for legislation to ensure that 
        investigators and agents of the Naval Criminal Investigative 
        Service use legal and proper tactics during interviews in 
        connection with criminal investigations of allegations of 
        contractor fraud.
SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
                          FORCES.

    (a) Report Required.--Not later than January 31, 1997, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of Representatives a 
report on the military readiness requirements of the active and reserve 
components of the Armed Forces, including specific combat units, combat 
support units, and combat service support units. Based on the assessment 
scenario described in subsection (c), the report shall assess such 
readiness requirements under a tiered readiness and response system that 
categorizes a given unit of the Armed Forces according to the likelihood 
that the unit will be required to respond to a military conflict and the 
time in which the unit will be required to respond.
    (b) Preparation of Report.--The Chairman of the Joint Chiefs of 
Staff, together with the other members of the Joint Chiefs of Staff 
specified in section 151(a) of title 10, United States Code, shall 
prepare the report required by
subsection (a). The Chairman of the Joint Chiefs of Staff shall consult 
with the Commander of the Special Operations Command in the preparation 
of the report.

    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario based on the following assumptions:
            (1) The conflict is in a generic theater of operations 
        located anywhere in the world and does not exceed the notional 
        limits for a major regional conflict.
            (2) The forces available for deployment include the forces 
        described in the Bottom-Up Review force structure, including all 
        planned force enhancements.
            (3) Assistance is not available from allies.

    (d) Assessment Elements.--The report shall identify by unit type and 
component, and assess the readiness requirements of, all active and 
reserve component units. Each such unit shall be categorized within one 
of the following classifications:
            (1) Forward-deployed and crisis response forces, or ``Tier 
        I'' forces, that possess limited internal sustainment capability 
        and do not require immediate access to regional air bases or 
        ports or overflight rights, including the following:
                    (A) Force units that are routinely deployed forward 
                at sea or on land outside the United States.
                    (B) Combat-ready crises response forces that are 
                capable of mobilizing and deploying within 10 days after 
                receipt of orders.
                    (C) Forces that are supported by prepositioning 
                equipment afloat or are capable of being inserted into a 
                theater

[[Page 110 STAT. 2647]]

                upon the capture of a port or airfield by forcible entry 
                forces.
            (2) Combat-ready follow-on forces, or ``Tier II'' forces, 
        that can be mobilized and deployed to a theater within 
        approximately 60 days after receipt of orders.
            (3) Combat-ready conflict resolution forces, or ``Tier III'' 
        forces, that can be mobilized and deployed to a theater within 
        approximately 180 days after receipt of orders.
            (4) All other active and reserve component force units which 
        are not categorized within a classification described in 
        paragraph (1), (2), or (3).

    (e) Additional Information Regarding Certain Units.--With regard to 
each unit that is not categorized within a classification described in 
paragraph (1), (2), or (3) of subsection (d), the report shall include--
            (1) a description of the mission and mobilization or 
        deployment schedule (or both) of the unit in connection with the 
        requirements of the assessment scenario and the combat readiness 
        requirements of the Armed Forces; or
            (2) an identification of the unit as excess to the needs of 
        the national military strategy and the reasons therefor.

    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 1048. <<NOTE: President.>> REPORT ON NATO ENLARGEMENT.

    (a) Report.--Not later than February 1, 1997, the President shall 
transmit to the Committee on Armed Services and the Committee on Foreign 
Relations of the Senate and the Committee on National Security and the 
Committee on International Relations of the House of Representatives a 
report on the enlargement of the North Atlantic Treaty Organization. The 
report shall contain a comprehensive discussion of the following:
            (1) Geopolitical and financial costs and benefits, including 
        financial savings, associated with--
                    (A) enlargement of the North Atlantic Treaty 
                Organization;
                    (B) further delays in the process of enlargement of 
                the North Atlantic Treaty Organization; and
                    (C) a failure to enlarge the North Atlantic Treaty 
                Organization.
            (2) Additional North Atlantic Treaty Organization and United 
        States military expenditures requested by prospective members of 
        the North Atlantic Treaty Organization to facilitate their 
        admission into the North Atlantic Treaty Organization.
            (3) Modifications necessary in the military strategy of the 
        North Atlantic Treaty Organization and force structure required 
        by the inclusion of new members and steps necessary to integrate 
        new members, including the role of nuclear and conventional 
        capabilities, reinforcement, force deployments, prepositioning 
        of equipment, mobility, and headquarter locations.
            (4) The relationship between enlargement of the North 
        Atlantic Treaty Organization and transatlantic stability and 
        security.
            (5) The state of military preparedness and interoperability 
        of Central and Eastern European nations as it relates to the 
        responsibilities of membership of the North Atlantic Treaty

[[Page 110 STAT. 2648]]

        Organization and additional security costs or benefits that may 
        accrue to the United States from enlargement of the North 
        Atlantic Treaty Organization.
            (6) The state of democracy and free market development as it 
        affects the preparedness of Central and Eastern European nations 
        for the responsibilities of membership of the North Atlantic 
        Treaty Organization, including civilian control of the military, 
        the rule of law, human rights, and parliamentary oversight.
            (7) The state of relations between prospective members of 
        the North Atlantic Treaty Organization and their neighbors, 
        steps taken by prospective members to reduce tensions, and 
        mechanisms for the peaceful resolution of border disputes.
            (8) The commitment of prospective members of the North 
        Atlantic Treaty Organization to the principles of the North 
        Atlantic Treaty and the security of the North Atlantic area.
            (9) The effect of enlargement of the North Atlantic Treaty 
        Organization on the political, economic, and security conditions 
        of European Partnership for Peace nations not among the first 
        new members of the North Atlantic Treaty Organization.
            (10) The relationship between enlargement of the North 
        Atlantic Treaty Organization and EU enlargement and the costs 
        and benefits of both.
            (11) The relationship between enlargement of the North 
        Atlantic Treaty Organization and treaties relevant to United 
        States and European security, such as the Conventional Armed 
        Forces in Europe Treaty.
            (12) The anticipated impact both of enlargement of the North 
        Atlantic Treaty Organization and further delays of enlargement 
        on Russian foreign and defense policies and the costs and 
        benefits of a security relationship between the North Atlantic 
        Treaty Organization and Russia.

    (b) Interpretation.--Nothing in this section shall be interpreted or 
construed to affect the implementation of the NATO Participation Act of 
1994 (title II of Public Law 103-447; 22 U.S.C. 1928 note), or any other 
program or activity which facilitates or assists prospective members of 
the North Atlantic Treaty Organization.

         Subtitle E--Management of Armed Forces Retirement Home

SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

    (a) Additional Term of Office.--Subsection (e) of section 1515 of 
the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 415) is amended 
by adding at the end the following new paragraph:
    ``(3) The Chairman of the Retirement Home Board may appoint a member 
of the Retirement Home Board for a second consecutive term. The Chairman 
of a Local Board may appoint a member of that Local Board for a second 
consecutive term.''.
    (b) Early Expiration of Term.--(1) Subsection (f) of such section is 
amended to read as follows:
    ``(f) Early Expiration of Term.--A member of the Armed Forces or 
Federal civilian employee who is appointed as a member of the Retirement 
Home Board or a Local Board may serve as a board member only so long as 
the member of the Armed Forces

[[Page 110 STAT. 2649]]

or Federal civilian employee is assigned to or serving in the duty 
position that gave rise to the appointment as a board member.''.
    (2) <<NOTE: 24 USC 415 note.>> The amendment made by this subsection 
shall not affect the staggered terms of members of the Armed Forces 
Retirement Home Board or a Local Board of the Retirement Home under 
section 1515(f) of such Act, as such section is in effect before the 
date of the enactment of this Act.

    (c) Annual Evaluation of Directors.--Section 1517 of such Act (24 
U.S.C. 417) is amended by striking out subsection (f) and inserting in 
lieu thereof the following:
    ``(f) Annual Evaluation of Directors.--The Chairman of the 
Retirement Home Board shall annually evaluate the performance of the 
Directors and shall make such recommendations to the 
Secretary of Defense as the Chairman considers appropriate in light of 
the evaluation.''.

SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES.

    (a) Authority.--Part A of the Armed Forces Retirement Home Act of 
1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et seq.) is amended 
by adding at the end the following new section:
``SEC. 1522. AUTHORITY <<NOTE: 24 USC 422.>> TO ACCEPT CERTAIN 
                            UNCOMPENSATED 
                            SERVICES.

    ``(a) Authority To Accept Services.--Subject to subsection (b) and 
notwithstanding section 1342 of title 31, United States Code, the 
Chairman of the Retirement Home Board or the Director of each 
establishment of the Retirement Home may accept from any person 
voluntary personal services or gratuitous services unless the acceptance 
of the voluntary services is disapproved by the Retirement Home Board.
    ``(b) Requirements and Limitations.--(1) The Chairman of the 
Retirement Home Board or the Director of the establishment accepting the 
services shall notify the person of the scope of the services accepted.
    ``(2) The Chairman or Director shall--
            ``(A) supervise the person providing the services to the 
        same extent as that official would supervise a compensated 
        employee providing similar services; and
            ``(B) ensure that the person is licensed, privileged, has 
        appropriate credentials, or is otherwise qualified under 
        applicable laws or regulations to provide such services.

    ``(3) A person providing services accepted under subsection (a) may 
not--
            ``(A) serve in a policymaking position of the Retirement 
        Home; or
            ``(B) be compensated for the services by the Retirement 
        Home.

    ``(c) Authority To Recruit and Train Persons Providing Services.--
The Chairman of the Retirement Home Board or the Director of an 
establishment of the Retirement Home may recruit and train persons to 
provide services authorized to be accepted under subsection (a).
    ``(d) Status of Persons Providing Services.--(1) Subject to 
paragraph (3), while providing services accepted under subsection (a) or 
receiving training under subsection (c), a person shall be considered to 
be an employee of the Federal Government only for purposes of the 
following provisions of law:

[[Page 110 STAT. 2650]]

            ``(A) Subchapter I of chapter 81 of title 5, United States 
        Code (relating to compensation for work-related injuries).
            ``(B) Chapter 171 of title 28, United States Code (relating 
        to claims for damages or loss).

    ``(2) A person providing services accepted under subsection (a) 
shall be considered to be an employee of the Federal Government under 
paragraph (1) only with respect to services that are within the scope of 
the services accepted.
    ``(3) For purposes of determining the compensation for work-related 
injuries payable under chapter 81 of title 5,
United States Code (pursuant to this subsection) to a person providing 
services accepted under subsection (a), the monthly pay of the person 
for such services shall be deemed to be the amount determined by 
multiplying--
            ``(A) the average monthly number of hours that the person 
        provided the services, by
            ``(B) the minimum wage determined in accordance with section 
        6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
        206(a)(1)).

    ``(e) Reimbursement of Incidental Expenses.--The Chairman of the 
Retirement Board or the Director of the establishment accepting services 
under subsection (a) may provide for reimbursement of a person for 
incidental expenses incurred by the person in providing the services 
accepted under subsection (a). The Chairman or Director shall determine 
which expenses qualify for reimbursement under this subsection.''.
    (b) Federal Status of Residents Paid for Part-Time or Intermittent 
Services.--Paragraph (2) of section 1521(b) of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 421(b)) is amended to read as 
follows:
            ``(2) being an employee of the United States for any purpose 
        other than--
                    ``(A) subchapter I of chapter 81 of title 5, United 
                States Code (relating to compensation for work-related 
                injuries); and
                    ``(B) chapter 171 of title 28, United States Code 
                (relating to claims for damages or loss).''.
SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF 
                          COLUMBIA.

    (a) Disposal Authorized.--Notwithstanding title II the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 481 et 
seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section 501 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), or 
any other provision of law relating to the management and disposal of 
real property by the United States, the Armed Forces Retirement Home 
Board may convey, by sale or otherwise, all right, title, and interest 
of the United States in a parcel of real property, including 
improvements thereon, consisting of approximately 49 acres located in 
Washington, District of Columbia, east of North Capitol Street, and 
recorded as District Parcel 121/19.
    (b) Manner, Terms, and Conditions of Disposal.--The Armed Forces 
Retirement Home Board may determine--
            (1) the manner for the disposal of the real property under 
        subsection (a); and

[[Page 110 STAT. 2651]]

            (2) the terms and conditions for the conveyance of that 
        property, including any terms and conditions that the Board 
        considers necessary to protect the interests of the United 
        States.

    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Armed Forces 
Retirement Home Board. The cost of the survey shall be borne by the 
party or parties to which the property is to be conveyed.
    (d) Congressional Notification.--(1) Before disposing of real 
property under subsection (a), the Armed Forces Retirement Home Board 
shall notify the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives of the 
proposed disposal. The Board may not dispose of the real property until 
the later of--
            (A) the date that is 60 days after the date on which the 
        notification is received by the committees; or
            (B) the date of the next day following the expiration of the 
        first period of 30 days of continuous session of Congress that 
        follows the date on which the notification is received by the 
        committees.

    (2) For the purposes of paragraph (1)--
            (A) continuity of session is broken only by an adjournment 
        of Congress sine die; and
            (B) the days on which either House is not in session because 
        of an adjournment of more than three days to a day certain are 
        excluded in the computation of any period of time in which 
        Congress is in continuous session.

                        Subtitle F--Other Matters

SEC. 1061. POLICY <<NOTE: President.>> ON PROTECTION OF NATIONAL 
                          INFORMATION INFRASTRUCTURE AGAINST 
                          STRATEGIC ATTACK.

    (a) Report Requirement.--Not later than 180 days after the date of 
the enactment of this Act, the President shall submit to Congress a 
report setting forth a national policy on protecting the national 
information infrastructure against strategic attack.
    (b) Matters To Be Included.--The policy described in the report 
shall include the following:
            (1) Plans to meet essential Government and civilian needs 
        during a national security emergency associated with a strategic 
        attack on elements of the national information infrastructure 
        the functioning of which depend on networked computer 
        systems.
            (2) The identification of information infrastructure 
        functions that must be performed during such an emergency.
            (3) The assignment of responsibilities to Federal 
        departments and agencies, and a description of the roles of 
        Government and industry, relating to indications and warning of, 
        assessment of, response to, and reconstitution after, potential 
        strategic attacks on the elements of the national information 
        infrastructure described under paragraph (1).

    (c) Unresolved Issues.--The report shall also identify--
            (1) matters relating to the national policy described in the 
        report that, as of the submission of the report, are in need of 
        further study and resolution, such as technology and funding 
        shortfalls; and

[[Page 110 STAT. 2652]]

            (2) legal and regulatory considerations relating to the 
        national policy.

    (d) Update of Earlier Report.--The report shall include an update of 
the report required to be submitted to
Congress pursuant to section 1053 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 440).
SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

    (a) Allocation.--Of the amounts appropriated for the Department of 
Defense for the Defense Information Infrastructure for each of fiscal 
years 1999 through 2002, the Secretary of Defense shall allocate to the 
information systems security program (program element 0303140K) amounts 
as follows:
            (1) For fiscal year 1999, 2.5 percent.
            (2) For fiscal year 2000, 3.0 percent.
            (3) For fiscal year 2001, 3.5 percent.
            (4) For fiscal year 2002, 4.0 percent.

    (b) Relationship to Other Amounts.--Amounts allocated under 
subsection (a) are in addition to amounts appropriated to the National 
Security Agency and the Defense Advanced Research Projects Agency for 
development of information security systems, acquisition of information 
security systems, and operation of information security systems.
    (c) Report.--Not later than November 15, 1997, the Secretary of 
Defense shall submit to the congressional defense committees and the 
congressional intelligence committees a report on information security 
activities of the Department of Defense. The report shall describe--
            (1) the objectives of the Secretary with respect to 
        information security and the strategy of the Secretary 
        (including the strategy with respect to funding) during fiscal 
        years 1999 through 2002 to achieve those objectives;
            (2) how the Secretary intends to manage and allocate the 
        funds required by subsection (a) to be allocated to the 
        information systems security program; and
            (3) if the Secretary determines that a funding plan for the 
        information systems security program for fiscal years 1999 
        through 2002 other than that specified in subsection (a) is 
        appropriate, the alternative funding plan proposed by the 
        Secretary.

    (d) Defense Information Infrastructure.--For purposes of this 
section, the Defense Information Infrastructure is the web of 
communications networks, computers, software, databases, applications, 
data security services, and other capabilities that meets the 
information processing and transport needs of Department of Defense 
users.
SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN GOVERNMENTS 
                          AND INTERNATIONAL ORGANIZATIONS FOR 
                          DEFENSE PURPOSES.

    Section 2608(a) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``and may accept 
from any foreign government or international organization any 
contribution of services made by such foreign government or 
international organization for use by the Department of Defense''.

[[Page 110 STAT. 2653]]

SEC. 1064. PROHIBITION <<NOTE: 15 USC 5621 note.>> ON COLLECTION 
                          AND RELEASE OF DETAILED SATELLITE 
                          IMAGERY RELATING TO ISRAEL.

    (a) Collection and Dissemination.--A department or agency of the 
United States may issue a license for the collection or dissemination by 
a non-Federal entity of satellite imagery with respect to Israel only if 
such imagery is no more detailed or precise than satellite imagery of 
Israel that is available from commercial sources.
    (b) Declassification and Release.--A department or agency of the 
United States may declassify or otherwise release satellite imagery with 
respect to Israel only if such imagery is no more detailed or precise 
than satellite imagery of Israel that is available from commercial 
sources.

SEC. 1065. <<NOTE: 10 USC 113 note.>> GEORGE C. MARSHALL EUROPEAN CENTER 
            FOR STRATEGIC SECURITY STUDIES.

    (a) Authority To Accept Foreign Gifts and Donations.--(1) The 
Secretary of Defense may, on behalf of the George C. Marshall European 
Center for Strategic Security Studies (in this section referred to as 
the ``Marshall Center''), accept foreign gifts or donations in order to 
defray the costs of, or enhance the operation of, the Marshall Center.
    (2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the Marshall Center. Funds so credited shall be merged with the 
appropriations to which credited and shall be available for the Marshall 
Center for the same purposes and same period as the appropriations with 
which merged.
    (3) <<NOTE: Notification.>> The Secretary of Defense shall notify 
Congress if the total amount of money accepted under paragraph (1) 
exceeds $2,000,000 in any fiscal year. Any such notice shall list each 
of the contributors of such amounts and the amount of each contribution 
in such fiscal year.

    (4) For purposes of this subsection, a foreign gift or donation is a 
gift or donation of funds, materials (including research materials), 
property, or services (including lecture services and faculty services) 
from a foreign government, a foundation or other charitable organization 
in a foreign country, or an individual in a foreign country.
    (b) Marshall Center Participation By Foreign Nations.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense may 
authorize participation by a European or Eurasian nation in Marshall 
Center programs if the Secretary determines, after consultation with the 
Secretary of State, that such participation is in the national interest 
of the United States.
    (2) <<NOTE: Reports.>> Not later than January 31 of each year, the 
Secretary of Defense shall submit to Congress a report setting forth the 
names of the foreign nations permitted to participate in programs of the 
Marshall Center during the preceding year under paragraph (1). Each such 
report shall be prepared by the Secretary with the assistance of the 
Director of the Marshall Center.

    (c) Exemptions for Members of Marshall Center Board of Visitors From 
Certain Requirements.--(1) In the case of any person invited to serve 
without compensation on the Marshall Center Board of Visitors, the 
Secretary of Defense may waive any requirement for financial disclosure 
that
would otherwise apply to that person solely by reason of service on such 
Board.

[[Page 110 STAT. 2654]]

    (2) Notwithstanding any other provision of law, a member of the 
Marshall Center Board of Visitors may not be required to register as an 
agent of a foreign government solely by reason of service as a member of 
the Board.
    (3) Notwithstanding section 219 of title 18, United States Code, a 
non-United States citizen may serve on the Marshall Center Board of 
Visitors even though registered as a foreign agent.
SEC. 1066. AUTHORITY <<NOTE: 31 USC 5111 note.>> TO AWARD TO 
                          CIVILIAN PARTICIPANTS IN THE DEFENSE OF 
                          PEARL HARBOR THE CONGRESSIONAL MEDAL 
                          PREVIOUSLY AUTHORIZED ONLY FOR MILITARY 
                          PARTICIPANTS IN THE DEFENSE OF PEARL 
                          HARBOR.

    (a) Authority.--The Speaker of the House of Representatives and the 
President pro tempore of the Senate are authorized jointly to present, 
on behalf of Congress, a bronze medal provided for under section 1492 of 
the National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 104 Stat. 1721) to any person who meets the eligibility 
requirements set forth in subsection (d) of that section other than the 
requirement for membership in the Armed Forces, as certified under 
subsection (e) of that section or under subsection (b) of this section.
    (b) Certification.--The Secretary of Defense shall, not later than 
12 months after the date of the enactment of this Act, certify to the 
Speaker of the House of Representatives and the President pro tempore of 
the Senate the names of persons who are eligible for award of the medal 
under this Act and have not previously been certified under section 
1492(e) of the National Defense Authorization Act for Fiscal Year 1991.
    (c) Applications.--Subsections (d)(2) and (f) of section 1492 of the 
National Defense Authorization Act for Fiscal Year 1991 shall apply in 
the administration of this section.
    (d) Additional Striking Authority.--The Secretary of the Treasury 
shall strike such additional medals as may be necessary for presentation 
under the authority of subsection (a).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated such sum as may be necessary to carry out this section.
    (f) Retroactive Effective Date.--The authority under subsection (a) 
shall be effective as of November 5, 1990.
SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES ON 
                          MILITARY INSTALLATIONS.

    Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is amended--
            (1) by striking out ``Whoever shall violate'' and inserting 
        in lieu thereof ``(a) Except as provided in subsection (b), 
        whoever violates'';
            (2) by inserting ``than'' after ``not more''; and
            (3) by adding at the end the following:

    ``(b)(1) Whoever violates any military traffic regulation shall be 
fined an amount not to exceed the amount of the maximum fine for a like 
or similar offense under the criminal or civil law of the State, 
territory, possession, or district where the military installation in 
which the violation occurred is located, or imprisoned for not more than 
30 days, or both.
    ``(2) For purposes of this subsection, the term `military traffic 
regulation' means a rule or regulation for the control of vehicular or 
pedestrian traffic on military installations that is promulgated

[[Page 110 STAT. 2655]]

by the Secretary of Defense, or the designee of the Secretary, under the 
authority delegated pursuant to section 2.''.

SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

    (a) Technical Amendment Regarding Forfeitures During Confinement 
Adjudged by a Court-martial.--(1) Section 858b(a)(1) of title 10, United 
States Code (article 58b(a)(1) of the Uniform Code of Military Justice), 
is amended--
            (A) in the first sentence, by inserting ``(if adjudged by a 
        general court-martial)'' after ``all pay and''; and
            (B) in the third sentence, by striking out ``two-thirds of 
        all pay and allowances'' and inserting in lieu thereof ``two-
        thirds of all pay''.

    (2) <<NOTE: Effective date. Applicability. 10 USC 858b note.>> The 
amendments made by paragraph (1) shall take effect as of April 1, 1996, 
and shall apply to any case in which a sentence is adjudged by a court-
martial on or after that date.

    (b)  Excepted Service Appointments to Certain Nonattorney Positions 
of the United States Court of Appeals for the Armed Forces.--(1) 
Subsection (c) of section 943 of title 10, United States Code (article 
143(c) of the Uniform Code of Military Justice) is amended in paragraph 
(1) by inserting after the first sentence the following: ``A position of 
employment under the Court that is provided primarily for the service of 
one judge of the court, reports directly to the judge, and is a position 
of a confidential character is excepted from the competitive service.''.
    (2) The caption for such subsection is amended by striking out 
``attorney'' and inserting in lieu thereof ``certain''.
    (c) Repeal of 13-Year Special Limit on Term of Transitional Judge of 
United States Court of Appeals for the Armed Forces.--(1) Subsection 
(d)(2) of section 1301 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1575; 10 
U.S.C. 942 note) is amended by striking out ``to the judges who are 
first appointed to the two new positions of the court created as of 
October 1, 1990--'' and all that follows and inserting in lieu thereof 
``to the judge who is first appointed to one of the two new positions of 
the court created as of October 1, 1990, as designated by the President 
at the time of appointment, the anniversary referred to in subparagraph 
(A) of that paragraph shall be treated as being the seventh anniversary 
and the number of years referred to in subparagraph (B) of that 
paragraph shall be treated as being seven.''.
    (2) Subsection (e)(1) of such section is amended by striking out 
``each judge'' and inserting in lieu thereof ``a judge''.

SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

    (a) In General.--Chapter 110A of title 18, United States Code, is 
amended by inserting after section 2261 the following new section:

``Sec. 2261A. Interstate stalking

    ``Whoever travels across a State line or within the special maritime 
and territorial jurisdiction of the United States with the intent to 
injure or harass another person, and in the course of, or as a result 
of, such travel places that person in reasonable fear of the death of, 
or serious bodily injury (as defined in section 1365(g)(3) of this 
title) to, that person or a member of that person's immediate family (as 
defined in section 115 of this title) shall be punished as provided in 
section 2261 of this title.''.

[[Page 110 STAT. 2656]]

    (b) Conforming Amendments.--Title 18, United States Code, is amended 
as follows:
            (1) Section 2261(b) is amended by inserting ``or section 
        2261A'' after ``this section''.
            (2) Sections 2261(b) and 2262(b) are each amended by 
        striking ``offender's spouse or intimate partner'' each place it 
        appears and inserting ``victim''.
            (3) The chapter heading for chapter 110A is amended by 
        inserting ``AND STALKING'' after ``VIOLENCE''.
            (4) The item relating to chapter 110A in the table of 
        chapters at the beginning of part I is amended to read as 
        follows:

``110A.    Domestic violence and stalking........................2261''.

    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 110A of such title is amended by inserting after the item 
relating to section 2261 the following new item:

``2261A. Interstate stalking.''.

SEC. 1070. PARTICIPATION <<NOTE: 10 USC 113 note.>> OF MEMBERS, 
                          DEPENDENTS, AND OTHER PERSONS IN CRIME 
                          PREVENTION EFFORTS AT INSTALLATIONS.

    (a) Crime Prevention Plan.--The Secretary of Defense shall prepare 
and implement an incentive-based plan to encourage 
members of the Armed Forces, dependents of members, civilian employees 
of the Department of Defense, and employees of defense contractors 
performing work at military installations to report to an appropriate 
military law enforcement agency any crime or criminal activity that the 
person reasonably believes occurred on a military installation or 
involves a member of the Armed Forces.
    (b) Incentives to Report Criminal Activity.--The Secretary of 
Defense shall include in the plan developed under subsection (a) 
incentives for members and other persons described in such subsection to 
provide information to appropriate military law enforcement agencies 
regarding any crime or criminal activity occurring on a military 
installation or involving a member of the Armed Forces.
    (c) Report Regarding Implementation.--Not later than February 1, 
1997, the Secretary shall submit to Congress a report describing the 
plan being developed under subsection (a).

SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF THE 
            DEPARTMENT OF DEFENSE.

    (a) In General.--Subchapter I of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2249b. Display of State flags: prohibition on use of funds 
                      to arbitrarily exclude flag; position and 
                      manner of display

    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to prescribe or enforce any rule 
that arbitrarily excludes the official flag of any State, territory, or 
possession of the United States from any display of the flags of the 
States, territories, and possessions of the United States at an official 
ceremony of the Department of Defense.
    ``(b) Position and Manner of Display.--The display of an official 
flag of a State, territory, or possession of the United States at an 
installation or other facility of the Department shall be

[[Page 110 STAT. 2657]]

governed by the provisions of section 3 of the Joint Resolution of June 
22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and any 
modification of such provisions under section 8 of that Joint Resolution 
(36 U.S.C. 178).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter I of such chapter is amended by adding at the end the following 
new item:

``2249b. Display of State flags: prohibition on use of funds to 
           arbitrarily exclude flag; position and manner of display.''.

SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

    (a) Reutilization <<NOTE: Arizona.>> or Sale Before Transfer.--An 
operational support airlift aircraft that is excess to the requirements 
of the United States shall be placed in an inactive status and stored at 
Davis-Monthan Air Force Base, Arizona, only upon the determination of 
the Secretary of Defense that all reasonable efforts for the 
reutilization of the aircraft by, or sale of the aircraft to, Federal 
agencies or other persons have been completed. The Secretary shall 
ensure that attempts to reutilize or sell the entire aircraft are given 
precedence over any reutilization or sale of individual parts or 
components of the aircraft.

    (b) Operational Support Airlift Aircraft Defined.--In this section, 
the term ``operational support airlift aircraft'' has the meaning given 
such term in section 1086(f) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 458).

SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN DEPARTMENT OF 
            DEFENSE ORGANIZATIONS.

    (a) North American Aerospace Defense Command.--Section 162(a) of 
title 10, United States Code, is amended by striking out ``North 
American Air Defense Command'' in paragraphs (1), (2), and (3) and 
inserting in lieu thereof ``North American Aerospace Defense Command''.
    (b) Former Naval Records and History Office and Fund.--(1) Section 
7222 of title 10, United States Code, is amended by striking out 
``Office of Naval Records and
History'' each place it appears in subsections (a) and (c) and inserting 
in lieu thereof ``Naval Historical Center''.

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

``Sec. 7222. Naval Historical Center Fund''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 631 of title 10, United States Code, is amended 
to read as follows:

``7222. Naval Historical Center Fund.''.

    (3) Section 2055(g) <<NOTE: 26 USC 2055.>> of the Internal Revenue 
Code of 1986 is amended by striking out paragraph (4) and inserting in 
lieu thereof the following:

                    ``(4) For treatment of gifts and bequests for the 
                benefit of the Naval Historical Center as gifts or 
                bequests to or for the use of the United States, see 
                section 7222 of title 10, United States Code.''.

    (c) Defense Distribution Center, Anniston.--The Corporation for the 
Promotion of Rifle Practice and Firearms Safety Act

[[Page 110 STAT. 2658]]

(title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 et seq.) 
is amended by striking out ``Anniston Army Depot'' each place it appears 
in the following provisions and inserting in lieu thereof ``Defense 
Distribution Depot, Anniston'':
            (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).
            (2) Section 1616(b) (36 U.S.C. 5506(b)).
            (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).

    (d) Chemical Demilitarization Citizens Advisory Commissions.--
Section 172 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2341; 50 U.S.C. 1521 note) is 
amended by striking out ``Assistant Secretary of the Army 
(Installations, Logistics, and Environment)'' in subsections (b) and (f) 
and inserting in lieu thereof ``Assistant Secretary of the Army 
(Research, Development and Acquisition)''.
    (e) Defense Advanced Research Projects Agency.--(1) Each of the 
following provisions of law is amended by inserting ``Defense'' before 
``Advanced Research Projects Agency'' each place it appears:
            (A) Section 5316 of title 5, United States Code.
            (B) Subsections (b), (f), and (i) of section 2371 of title 
        10, United States Code.
            (C) Section 822(c)(1)(D) of Public Law 101-510 (42 U.S.C. 
        6686).
            (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 2371 
        note).
            (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 2431 
        note).
            (F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law 
        103-160 (10 U.S.C. 2501 note).

    (2) The section headings of each of the following sections are 
amended by inserting ``defense'' before ``advanced'':
            (A) Section 845 of Public Law 103-160 (10 U.S.C. 2371 note).
            (B) Sections 1353 and 1354 of Public Law 103-160 (10 U.S.C. 
        2501 note).

    (3) The heading for subsection (a) of section 1354 of Public Law 
103-160 (10 U.S.C. 2501 note) is amended by striking out ``ARPA'' and 
inserting in lieu thereof ``DARPA''.

SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Miscellaneous Amendments to Title 10, United States Code.--Title 
10, United States Code, is amended as follows:
            (1) Section 129(a) is amended by striking out ``the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 1996'' and inserting in lieu thereof ``February 10, 
        1996,''.
            (2) Section 401 is amended--
                    (A) in subsection (a)(4), by striking out ``Armed 
                Forces'' both places it appears and inserting in lieu 
                thereof ``armed forces''; and
                    (B) in subsection (e), by inserting ``any of the 
                following'' after ``means''.
            (3) Section 528(b) is amended by striking out ``(1)'' after 
        ``(b)'' and inserting ``(1)'' before ``The limitation''.
            (4) Section 1078a(a) is amended by striking out ``Beginning 
        on October 1, 1994, the'' and inserting in lieu thereof ``The''.
            (5) Section 1161(b)(2) is amended by striking out ``section 
        1178'' and inserting in lieu thereof ``section 1167''.

[[Page 110 STAT. 2659]]

            (6) Section 1167 is amended by striking out ``person'' and 
        inserting in lieu thereof ``member''.
            (7) The table of sections at the beginning of chapter 81 is 
        amended by striking out ``Sec.'' in the item relating to section 
        1599a.
            (8) Section 1588(d)(1)(C) is amended by striking out 
        ``Section 522a'' and inserting in lieu thereof ``Section 552a''.
            (9) Chapter 87 is amended--
                    (A) in section 1723(a), by striking out the second 
                sentence;
                    (B) in section 1724--
                          (i) in subsection (a), by striking out ``small 

                      purchase threshold'' and inserting in lieu thereof 
                      ``simplified acquisition threshold''; and
                          (ii) in subsections (a) and (b), by striking 
                      out ``, beginning on October 1, 1993,'';
                    (C) in section 1733(a), by striking out ``On and 
                after October 1, 1993, a'' and inserting in lieu thereof 
                ``A''; and
                    (D) in section 1734--
                          (i) in subsection (a)(1), by striking out ``, 
                      on and after October 1, 1993,''; and
                          (ii) in subsection (b)(1)(A), by striking out 
                      ``, on and after October 1, 1991,''.
            (10) Section 2216, as added by section 371 of the National 
        Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 107 Stat. 277), <<NOTE: Ante, p. 277.>> is redesignated as 
        section 2216a, and the item relating to that section in the 
        table of sections at the beginning of chapter 131 is revised so 
        as to reflect such redesignation.
            (11) Section 2305(b)(6) is amended--
                    (A) in subparagraph (B), by striking out ``of this 
                section'' and ``of this paragraph'';
                    (B) in subparagraph (C), by striking out ``this 
                subsection'' and inserting in lieu thereof 
                ``subparagraph (A)''; and
                    (C) in subparagraph (D), by striking out ``pursuant 
                to this subsection'' and inserting in lieu thereof 
                ``under subparagraph (A)''.
            (12) Section 2306a(h)(3) is amended by inserting ``(41 
        U.S.C. 403(12))'' before the period at the end.
            (13) Section 2323a(a) is amended by striking out ``section 
        1207 of the National Defense Authorization Act for Fiscal Year 
        1987 (10 U.S.C. 2301 note)'' and inserting in lieu thereof 
        ``section 2323 of this title''.
            (14) Section 2534(c)(4) is amended by striking out ``the 
        date occurring two years after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 1996'' and 
        inserting in lieu thereof ``February 10, 1998''.
            (15) The table of sections at the beginning of chapter 155 
        is amended by striking out the item relating to section 2609.
            (16) Section 2610(e) is amended by striking out ``two years 
        after the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1996'' and inserting in lieu 
        thereof ``on February 10, 1998''.
            (17) Sections 2824(c) and 2826(i)(1) are amended by striking 
        out ``the date of the enactment of the National Defense

[[Page 110 STAT. 2660]]

        Authorization Act for Fiscal Year 1996'' and inserting in lieu 
        thereof ``February 10, 1996''.
            (18) Section 3036(d)(3) is amended by striking out ``For 
        purposes of this subsection,'' and inserting in lieu thereof 
        ``In this subsection,''.
            (19) The table of sections at the beginning of chapter 641 
        is amended by striking out the item relating to section 7434.
            (20) Section 7863 is amended by inserting ``were'' in the 
        first sentence after ``the stores''.
            (21) Section 10542(b)(21) is amended by striking out ``261'' 
        and inserting in lieu thereof ``12001''.
            (22) Section 12205(a) is amended by striking out ``After 
        September 30, 1995, no person'' and inserting in lieu thereof 
        ``No person''.

    (b) Amendments to Public Law 104-106.--The National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
186 et seq.) is amended as follows:
            (1) Section 561(d)(1) (110 Stat. 322) <<NOTE: 10 USC 
        1405.>> is amended by inserting ``of such title'' after 
        ``Section 1405(c)''.
            (2) Section 1092(b)(2) (110 Stat. 460) is amended by 
        striking out the period at the end and inserting in lieu thereof 
        ``; and''.
            (3) Section 4301(a)(1) (110 Stat. 656) <<NOTE: 10 USC 
        2410b.>> is amended by inserting ``of subsection (a)'' after 
        ``in paragraph (2)''.
            (4) Section 5601 (110 Stat. 699) is amended--
                    (A) in subsection (a), <<NOTE: 10 USC 2305.>> by 
                inserting ``of title 10, United States Code,'' before 
                ``is amended''; and
                    (B) in subsection (c), <<NOTE: 10 USC 2315.>> by 
                striking out ``use of equipment or services if,'' in the 
                second quoted matter therein and inserting in lieu 
                thereof ``use of the equipment or services''.
            (5) Section 3403 (110 Stat. 631) is amended by striking out 
        ``Act of Fiscal'' and inserting in lieu thereof ``Act for 
        Fiscal''.
            (6) Section 4202(c)(1) (110 Stat. 653) <<NOTE: Effective 
        date. 41 USC 427.>> is amended, effective as of February 10, 
        1996, by striking out ``purchases of' '' in the first quoted 
        matter therein and inserting in lieu thereof ``contracts for' 
        ''.
            (7) Section 5607(c) (110 Stat. 701) <<NOTE: Effective 
        date. 41 USC 253b.>> is amended, effective as of February 10, 
        1996--
                    (A) by striking out ``303B(h)'' and by inserting in 
                lieu thereof ``303B(k)''; and
                    (B) by striking out ``253b(h)'' and by inserting in 
                lieu thereof ``253b(k)''.

    (c) Provisions Executed Before Enactment of Public Law 104-106.--
            (1) <<NOTE: Applicability. 10 USC 6975 note.>> Section 
        533(b) of the National Defense Authorization Act for Fiscal Year 
        1996 (Public Law 104-106; 110 Stat. 315) shall apply as if 
        enacted as of December 31, 1995.
            (2) <<NOTE: Effective date. 10 USC 942 note.>> The authority 
        provided under section 942(f) of title 10, United States Code, 
        shall be effective as if section 1142 of the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
        Stat. 467) had been enacted on September 29, 1995.

    (d) Amendments to Other Acts.--
            (1) The last section of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 434), as added by section 5202 of Public 
        Law 104-106 (110 Stat. 690), is redesignated as section 38, and 
        the item appearing after section 34 in the table of contents

[[Page 110 STAT. 2661]]

        in the first section of that Act is transferred to the end of 
        such table of contents and revised so as to reflect such 
        redesignation.
            (2) Section 1412(g)(2) of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking out ``shall contain--'' and inserting in lieu 
                thereof ``shall include the following:'';
                    (B) in subparagraph (A)--
                          (i) by striking out ``a'' before ``site-by-
                      site'' and inserting in lieu thereof ``A''; and
                          (ii) by striking out the semicolon at the end 
                      and inserting in lieu thereof a period; and
                    (C) in subparagraphs (B) and (C), by striking out 
                ``an'' at the beginning of the subparagraph and 
                inserting in lieu thereof ``An''.
            (3) Section 3131 of Public Law 99-570 (19 U.S.C. 2081; 100 
        Stat. 3207-91) is amended in clause (v) of subsection (a)(1)(A) 
        by striking out ``and (c)'' both places it appears.

    (e) Coordination <<NOTE: Applicability. 10 USC 101 note.>> With 
Other Amendments.--For purposes of applying amendments made by 
provisions of this Act other than provisions of this section, this 
section shall be treated as having been enacted immediately before the 
other provisions of this Act.

    (f) Amendments to the Office of Federal Procurement Policy Act.--The 
Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is 
amended as follows:
            (1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking 
        out ``the policies set forth in section 2 or''.
            (2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking 
        out the second sentence.
            (3) Section 25 (41 U.S.C. 421) is amended--
                    (A) in subsection (c)--
                          (i) in paragraph (3), by striking out ``the 
                      policies set forth in section 2 of this Act or''; 
                      and
                          (ii) in paragraph (5), by striking out ``or 
                      the policies set forth in section 2 of this Act''; 
                      and
                    (B) in subsection (e), by striking out ``the 
                policies of section 2 and''.
SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED STATES 
                          FOR TORTIOUS INFLICTION OF INJURY OR 
                          DISEASE ON MEMBERS OF THE UNIFORMED 
                          SERVICES.

    (a) Recovery of Pay and Allowances.--The first section of Public Law 
87-693 (42 U.S.C. 2651) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``or pay for'' after ``required by 
                law to furnish''; and
                    (B) by striking out ``or to be furnished'' both 
                places it appears and inserting in lieu thereof ``, to 
                be furnished, paid for, or to be paid for'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively;
            (3) by inserting after subsection (a), the following new 
        subsections:

    ``(b) If a member of the uniformed services is injured, or contracts 
a disease, under circumstances creating a tort liability upon a third 
person (other than or in addition to the United States

[[Page 110 STAT. 2662]]

and except employers of seamen referred to in subsection (a)) for 
damages for such injury or disease and the member is unable to perform 
the member's regular military duties as a result of the injury or 
disease, the United States shall have a right (independent of the rights 
of the member) to recover from the third person or an insurer of the 
third person, or both, the amount equal to the total amount of the pay 
that accrues and is to accrue to the member for the period for which the 
member is unable to perform such duties as a result of the injury or 
disease and is not assigned to perform other military duties.
    ``(c)(1) If, pursuant to the laws of a State that are applicable in 
a case of a member of the uniformed services who is injured or contracts 
a disease as a result of tortious conduct of a third person, there is in 
effect for such a case (as a substitute or alternative for compensation 
for damages through tort liability) a system of compensation or 
reimbursement for expenses of hospital, medical, surgical, or dental 
care and treatment or for lost pay pursuant to a policy of insurance, 
contract, medical or hospital service agreement, or similar arrangement, 
the United States shall be deemed to be a third-party beneficiary of 
such a policy, contract, agreement, or arrangement.
    ``(2) For the purposes of paragraph (1)--
            ``(A) the expenses incurred or to be incurred by the United 
        States for care and treatment for an injured or diseased member 
        as described in subsection (a) shall be deemed to have been 
        incurred by the member;
            ``(B) the cost to the United States of the pay of the member 
        as described in subsection (b) shall be deemed to have been pay 
        lost by the member as a result of the injury or disease; and
            ``(C) the United States shall be subrogated to any right or 
        claim that the injured or diseased member or the member's 
        guardian, personal representative, estate, dependents, or 
        survivors have under a policy, contract, agreement, or 
        arrangement referred to in paragraph (1) to the extent of the 
        reasonable value of the care and treatment and the total amount 
        of the pay deemed lost under subparagraph (B).'';
            (4) in subsection (d), as redesignated by paragraph (2), by 
        inserting ``or paid for'' after ``treatment is furnished''; and
            (5) by adding at the end the following:

    ``(f)(1) Any amount recovered under this section for medical care 
and related services furnished by a military medical treatment facility 
or similar military activity shall be credited to the appropriation or 
appropriations supporting the operation of that facility or activity, as 
determined under regulations prescribed by the Secretary of Defense.
    ``(2) Any amount recovered under this section for the cost to the 
United States of pay of an injured or diseased member of the uniformed 
services shall be credited to the appropriation that supports the 
operation of the command, activity, or other unit to which the member 
was assigned at the time of the injury or illness, as determined under 
regulations prescribed by the Secretary concerned.
    ``(g) For the purposes of this section:
            ``(1) The term `uniformed services' has the meaning given 
        such term in section 101 of title 10, United States Code.

[[Page 110 STAT. 2663]]

            ``(2) The term `tortious conduct' includes any tortious 
        omission.
            ``(3) The term `pay', with respect to a member of the 
        uniformed services, means basic pay, special pay, and incentive 
        pay that the member is authorized to receive under
title 37, United States Code, or any other law providing pay for service 
in the uniformed services.
            ``(4) The term `Secretary concerned' means--
                    ``(A) the Secretary of Defense, with respect to the 
                Army, the Navy, the Air Force, the Marine Corps, and the 
                Coast Guard (when it is operating as a service in the 
                Navy);
                    ``(B) the Secretary of Transportation, with respect 
                to the Coast Guard when it is not operating as a service 
                in the Navy;
                    ``(C) the Secretary of Health and Human Services, 
                with respect to the commissioned corps of the Public 
                Health Service; and
                    ``(D) the Secretary of Commerce, with respect to the 
                commissioned corps of the National Oceanic and 
                Atmospheric Administration.''.

    (b) Conforming Amendments.--The first section of Public Law 87-693 
(42 U.S.C. 2651) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``(independent of the rights of the 
                injured or diseased person)'' after ``a right to 
                recover''; and
                    (B) by inserting ``, or that person's insurer,'' 
                after ``from said third person'';
            (2) in subsection (d), as redesignated by subsection 
        (a)(2)--
                    (A) by striking out ``such right,'' and inserting in 
                lieu thereof ``a right under subsections (a), (b), and 
                (c)''; and
                    (B) by inserting ``or the insurance carrier or other 
                entity responsible for the payment or reimbursement of 
                medical expenses or lost pay'' after ``the third person 
                who is liable for the injury or disease'' each place it 
                appears.

    (c) Effective <<NOTE: Applicability. 42 USC 2651 note.>> Date.--The 
authority to collect pursuant to the amendments made by this section 
shall apply to expenses described in the first section of Public Law 87-
693 (as amended by this section) that are incurred, or are to be 
incurred, by the United States on or after the date of the enactment of 
this Act, whether the event from which the claim arises occurs before, 
on, or after that date.
SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS 
                          PROGRAM.

    (a) Report.--Not later than 120 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives a report assessing the implementation and 
success of the establishment of site-specific Integrated Product and 
Process Teams as a management tool for the Chemical Stockpile Emergency 
Preparedness Program.
    (b) Contingent <<NOTE: Effective date.>> Mandated Reforms.--If at 
the end of the 120-day period beginning on the date of the enactment of 
this Act the Secretary of the Army and the Director of the Federal 
Emergency Management Agency have been unsuccessful in

[[Page 110 STAT. 2664]]

implementing a site-specific Integrated Product and Process Team with 
each of the affected States, the Secretary of the Army shall--
            (1) assume full control and responsibility for the Chemical 
        Stockpile Emergency Preparedness Program (eliminating the role 
        of the Director of the Federal Emergency Management Agency as 
        joint manager of the program);
            (2) establish programmatic agreement with each of the 
        affected States regarding program requirements, implementation 
        schedules, training and exercise requirements, and funding (to 
        include direct grants for program support);
            (3) clearly define the goals of the program; and
            (4) establish fiscal constraints for the program.
SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO 
                          SAVINGS ASSOCIATIONS FOR CERTAIN SAVINGS 
                          INSTITUTIONS SERVING MILITARY PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended--
            (1) in the subparagraph caption, by striking out 
        ``association serving transient'' and inserting in lieu thereof 
        ``associations serving certain'';
            (2) by striking out ``company if--'' and all that follows 
        through ``90 percent'' and inserting in lieu thereof ``company 
        if at least 90 percent''; and
            (3) by striking out ``officers'' both places it appears and 
        inserting in lieu thereof ``members''.
SEC. 1078. IMPROVEMENTS <<NOTE: Fellowships and scholarships.>> TO 
                          NATIONAL SECURITY EDUCATION 
                          PROGRAM.

    (a) Temporary Requirement Relating to Employment.--Title VII of the 
Department of Defense Appropriations Act, 1996 (Public Law 104-61; 109 
Stat. 650), is amended in the paragraph under the heading ``National 
Security Education Trust Fund'' by striking out the proviso.
    (b) General Program Requirements.--(1) Subparagraph (A) of 
subsection (a)(1) of section 802 of the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1902) is amended to read as follows:
                    ``(A) awarding scholarships to undergraduate 
                students who--
                          ``(i) are United States citizens in order to 
                      enable such students to study, for at least one 
                      academic semester or equivalent term, in foreign 
                      countries that are critical countries (as 
                      determined under section 803(d)(4)(A)) in those 
                      languages and study areas where deficiencies exist 
                      (as identified in the assessments undertaken 
                      pursuant to section 806(d)); and
                          ``(ii) pursuant to subsection (b)(2)(A), enter 
                      into an agreement to work in a national security 
                      position or work in the field of higher education 
                      in the area of study for which the scholarship was 
                      awarded;''; and

    (2) Subparagraph (B) of that subsection is amended--
            (A) in clause (i), by inserting ``relating to the national 
        security interests of the United States'' after ``international 
        fields''; and
            (B) in clause (ii)--
                    (i) by striking out ``subsection (b)(2)'' and 
                inserting in lieu thereof ``subsection (b)(2)(B)''; and

[[Page 110 STAT. 2665]]

                    (ii) by striking out ``work for an agency or office 
                of the Federal Government or in'' and inserting in lieu 
                thereof ``work in a national security position or work 
                in''.

    (c) Service Agreement.--(1) Subsection (b) of that section is 
amended in the matter preceding paragraph (1) by striking out ``, or of 
scholarships'' and all that follows through ``12 months or more,'' and 
inserting in lieu thereof ``or any scholarship''.
    (2) Paragraph (2) of that subsection is amended to read as follows:
            ``(2) will--
                    ``(A) not later than eight years after such 
                recipient's completion of the study for which 
                scholarship assistance was provided under the program, 
                and in accordance with regulations issued by the 
                Secretary--
                          ``(i) work in a national security position for 
                      a period specified by the Secretary, which period 
                      shall be no longer than the period for which 
                      scholarship assistance was provided; or
                          ``(ii) if the recipient demonstrates to the 
                      Secretary (in accordance with such regulations) 
                      that no national security position is available, 
                      work in the field of higher education in a 
                      discipline relating to the foreign country, 
                      foreign language, area study, or international 
                      field of study for which the scholarship was 
                      awarded, for a period specified by the Secretary, 
                      which period shall be determined in accordance 
                      with clause (i); or
                    ``(B) upon completion of such recipient's education 
                under the program, and in accordance with such 
                regulations--
                          ``(i) work in a national security position for 
                      a period specified by the Secretary, which period 
                      shall be not less than one and not more than three 
                      times the period for which the fellowship 
                      assistance was provided; or
                          ``(ii) if the recipient demonstrates to the 
                      Secretary (in accordance with such regulations) 
                      that no national security position is available 
                      upon the completion of the degree, work in the 
                      field of higher education in a discipline relating 
                      to the foreign country, foreign language, area 
                      study, or international field of study for which 
                      the fellowship was awarded, for a period specified 
                      by the Secretary, which period shall be 
                      established in accordance with clause (i); and''.

    (d) Evaluation of Progress in Language Skills.--Such 
section is further amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c) Evaluation of Progress in Language Skills.--The Secretary 
shall, through the National Security Education Program office, 
administer a test of the foreign language skills of each recipient of a 
scholarship or fellowship under this title before the commencement of 
the study or education for which the scholarship or fellowship is 
awarded and after the completion of such study or education. The purpose 
of these tests is to evaluate the progress made by recipients of 
scholarships and fellowships in developing foreign language skills as a 
result of assistance under this title.''.

[[Page 110 STAT. 2666]]

    (e) Functions of the National Security Education Board.--Section 
803(d) of that Act (50 U.S.C. 1903(d)) is amended--
            (1) in paragraph (1), by inserting ``, including an order of 
        priority in such awards that favors individuals expressing an 
        interest in national security issues or pursuing a career in a 
        national security position'' before the period;
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking out ``Make recommendations'' and inserting in 
                lieu thereof ``After taking into account the annual 
                analyses of trends in language, international, and area 
                studies under section 806(b)(1), make recommendations'';
                    (B) in subparagraph (A), by inserting ``and 
                countries which are of importance to the national 
                security interests of the United States'' after ``are 
                studying''; and
                    (C) in subparagraph (B), by inserting ``relating to 
                the national security interests of the United States'' 
                after ``section 802(a)(1)(B)'';
            (3) by redesignating paragraph (5) as paragraph (8); and
            (4) by inserting after paragraph (4) the following new 
        paragraphs:
            ``(5) Encourage applications for fellowships under this 
        title from graduate students having an educational background in 
        any academic discipline, particularly in the areas of science or 
        technology.
            ``(6) <<NOTE: Records.>> Provide the Secretary biennially 
        with a list of scholarship recipients and fellowship recipients, 
        including an assessment of their foreign area and language 
        skills, who are 
        available to work in a national security position.
            ``(7) <<NOTE: Reports.>> Not later than 30 days after a 
        scholarship or fellowship recipient completes the study or 
        education for which assistance was provided under the program, 
        provide the Secretary with a report fully describing the foreign 
        area and language skills obtained by the recipient as a result 
        of the assistance.''.

    (f) National Security Position Defined.--(1) Section 808 of that Act 
(50 U.S.C. 1908) is amended by adding at the end the following new 
paragraph:
            ``(4) The term `national security position' means a 
        position--
                    ``(A) having national security responsibilities in a 
                agency or office of the Federal Government that has 
                national security responsibilities, as determined under 
                section 802(g); and
                    ``(B) in which the individual in such position makes 
                their foreign language skills available to such agency 
                or office.''.

    (2) Section 802 of that Act (50 U.S.C. 1902), as amended by 
subsection (d)(1) of this section, is further amended by adding at the 
end the following new subsection:
    ``(g) Determination <<NOTE: Records.>> of Agencies and Offices of 
the Federal Government Having National Security Responsibilities.--(1) 
The Secretary, in consultation with the Board, shall annually determine 
and develop a list identifying each agency or office of the Federal 
Government having national security responsibilities at which a 
recipient of a fellowship or scholarship under this title will be able 
to make the recipient's foreign area and language skills available to 
such agency or office. The Secretary shall submit the first such list to 
the Congress and include each subsequent

[[Page 110 STAT. 2667]]

list in the annual report to the Congress, as required by section 
806(b)(6).

    ``(2) Notwithstanding section 804, funds may not be made available 
from the Fund to carry out this title for fiscal year 1997 until 30 days 
after the date on which the Secretary of Defense submits to the Congress 
the first such list required by paragraph (1).''.
    (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended by 
striking out ``and'' at the end of paragraph (5), redesignating 
paragraph (6) as paragraph (7), and inserting after paragraph (5) the 
following new paragraph (6):
            ``(6) the current list of agencies and offices of the 
        Federal Government required to be developed by section 802(g); 
        and''.

    (g) Report on Program.--(1) Not later than six months after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report assessing the improvements to the program established 
under the David L. Boren National Security Education Act of 1991 (50 
U.S.C. 1901 et seq.) that result from the amendments made by this 
section.
    (2) The report shall include an assessment of the contribution of 
the program, as so improved, in meeting the national security objectives 
of the United States.

SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

    (a) Aviation Risk Insurance.--(1) Chapter 931 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 9514. Indemnification of Department of Transportation for 
                    losses covered by defense-related aviation 
                    insurance

    ``(a) Prompt Indemnification Required.--(1) In the event of a loss 
that is covered by defense-related aviation insurance, the Secretary of 
Defense shall promptly indemnify the Secretary of Transportation for the 
amount of the loss consistent with the indemnification agreement between 
the two Secretaries that underlies such insurance. The Secretary of 
Defense shall make such indemnification--
            ``(A) in the case of a claim for the loss of an aircraft 
        hull, not later than 30 days after the date on which the 
        Secretary of Transportation determines the claim to be payable 
        or that amounts are due under the policy that provided the 
        defense-related aviation insurance; and
            ``(B) in the case of any other claim, not later than 180 
        days after the date on which the Secretary of Transportation 
        determines the claim to be payable.

    ``(2) When there is a loss of an aircraft hull that is (or may be) 
covered by defense-related aviation insurance, the Secretary of 
Transportation may make, during the period when a claim for such loss is 
pending with the Secretary of Transportation, any required periodic 
payments owed by the insured party to a lessor or mortgagee of such 
aircraft. Such payments shall commence not later than 30 days following 
the date of the presentment of the claim for the loss of the aircraft 
hull to the Secretary of Transportation. If the Secretary of 
Transportation determines that the claim is payable, any amount paid 
under this paragraph arising from such claim shall be credited against 
the amount payable under

[[Page 110 STAT. 2668]]

the aviation insurance. If the Secretary of Transportation determines 
that the claim is not payable, any amount paid under this paragraph 
arising from such claim shall constitute a debt to the United States, 
payable to the insurance fund. Any such amounts so returned to the 
United States shall be promptly credited to the fund or account from 
which the payments were made under this paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The Secretary of 
Defense may pay an indemnity described in subsection (a) from any funds 
available to the Department of Defense for operation and maintenance, 
and such sums as may be necessary for payment of such indemnity are 
hereby authorized to be transferred to the Secretary of Transportation 
for such purpose.
    ``(c) Notice to Congress.--In the event of a loss that is covered by 
defense-related aviation insurance in the case of an incident in which 
the covered loss is (or is expected to be) in an amount in excess of 
$1,000,000, the Secretary of Defense shall submit to Congress--
            ``(1) notification of the loss as soon after the occurrence 
        of the loss as possible and in no event more than 30 days after 
        the date of the loss; and
            ``(2) <<NOTE: Reports.>> semiannual reports thereafter 
        updating the information submitted under paragraph (1) and 
        showing with respect to losses arising from such incident the 
        total amount expended to cover such losses, the source of those 
        funds, pending litigation, and estimated total cost to the 
        Government.

    ``(d) Implementing Matters.--(1) Payment of indemnification under 
this section is not subject to section 2214 or 2215 of this title or any 
other provision of law requiring notification to Congress before funds 
may be transferred.
    ``(2) Consolidation of claims arising from the same incident is not 
required before indemnification of the Secretary of Transportation for 
payment of a claim may be made under this section.
    ``(e) Construction With Other Transfer Authority.--Authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer funds (whether enacted before, on, or after 
the date of the enactment of this section) and is not subject to any 
dollar limitation or notification requirement contained in any other 
such authority to transfer funds.
    ``(f) Annual Report on Contingent Liabilities.--Not later than March 
1 of each year, the Secretary of Defense shall submit to Congress a 
report setting forth the current amount of the contingent outstanding 
liability of the United States under the insurance program under chapter 
443 of title 49.
    ``(g) Definitions.--In this section:
            ``(1) Defense-related aviation insurance.--The term 
        `defense-related aviation insurance' means aviation insurance 
        and reinsurance provided through policies issued by the 
        Secretary of Transportation under chapter 443 of title 49 that 
        pursuant to section 44305(b) of that title is provided by that 
        Secretary without premium at the request of the Secretary of 
        Defense and is covered by an indemnity agreement between the 
        Secretary of Transportation and the Secretary of Defense.
            ``(2) Loss.--The term `loss' includes damage to or 
        destruction of property, personal injury or death, and other 
        liabilities and expenses covered by the defense-related aviation 
        insurance.''.

[[Page 110 STAT. 2669]]

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

``9514. Indemnification of Department of Transportation for losses 
           covered by 
           defense-related aviation insurance.''.

    (b) Vessel War Risk Insurance.--(1) Chapter 157 of title 10, United 
States Code, is amended by adding after section 2644, as redesignated by 
section 906, the following new section:
``Sec. 2645. Indemnification of Department of Transportation for 
                    losses covered by vessel war risk insurance

    ``(a) Prompt Indemnification Required.--(1) In the event of a loss 
that is covered by vessel war risk insurance, the Secretary of Defense 
shall promptly indemnify the Secretary of Transportation for the amount 
of the loss consistent with the indemnification agreement between the 
two Secretaries that underlies such insurance. The Secretary of Defense 
shall make such indemnification--
            ``(A) in the case of a claim for the loss of a vessel, not 
        later than 90 days after the date on which the Secretary of 
        Transportation determines the claim to be payable or that 
        amounts are due under the policy that provided the vessel war 
        risk insurance; and
            ``(B) in the case of any other claim, not later than 180 
        days after the date on which on which the Secretary of 
        Transportation determines the claim to be payable.

    ``(2) When there is a loss of a vessel that is (or may be) covered 
by vessel war risk insurance, the Secretary of Transportation may make, 
during the period when a claim for such loss is pending with the 
Secretary of Transportation, any required periodic payments owed by the 
insured party to a lessor or mortgagee of such vessel. Such payments 
shall commence not later than 30 days following the date of the 
presentment of the claim for the loss of the vessel to the Secretary of 
Transportation. If the Secretary of Transportation determines that the 
claim is payable, any amount paid under this paragraph arising from such 
claim shall be credited against the amount payable under the vessel war 
risk insurance. If the Secretary of Transportation determines that the 
claim is not payable, any amount paid under this paragraph arising from 
such claim shall constitute a debt to the United States, payable to the 
insurance fund. Any such amounts so returned to the United States shall 
be promptly credited to the fund or account from which the payments were 
made under this paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The Secretary of 
Defense may pay an indemnity described in subsection (a) from any funds 
available to the Department of Defense for operation and maintenance, 
and such sums as may be necessary for payment of such indemnity are 
hereby authorized to be transferred to the Secretary of Transportation 
for such purpose.
    ``(c) Deposit of Funds.--Any amount transferred to the Secretary of 
Transportation under this section shall be deposited in, and merged with 
amounts in, the Vessel War Risk Insurance Fund as provided in the second 
sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1288(a)).
    ``(d) Notice to Congress.--In the event of a loss that is covered by 
vessel war risk insurance in the case of an incident in which the 
covered loss is (or is expected to be) in an amount in excess of 
$1,000,000, the Secretary of Defense shall submit to Congress--

[[Page 110 STAT. 2670]]

            ``(1) notification of the loss as soon after the occurrence 
        of the loss as possible and in no event more than 30 days after 
        the date of the loss; and
            ``(2) <<NOTE: Reports.>> semiannual reports thereafter 
        updating the information submitted under paragraph (1) and 
        showing with respect to losses arising from such incident the 
        total amount expended to cover such losses, the source of such 
        funds, pending litigation, and estimated total cost to the 
        Government.

    ``(e) Implementing Matters.--(1) Payment of indemnification under 
this section is not subject to section 2214 or
2215 of this title or any other provision of law requiring notification 
to Congress before funds may be transferred.

    ``(2) Consolidation of claims arising from the same incident is not 
required before indemnification of the Secretary of Transportation for 
payment of a claim may be made under this section.
    ``(f) Construction With Other Transfer Authority.--Authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer funds (whether enacted before, on, or after 
the date of the enactment of this section) and is not subject to any 
dollar limitation or notification requirement contained in any other 
such authority to transfer funds.
    ``(g) Annual Report on Contingent Liabilities.--Not later than March 
1 of each year, the Secretary of Defense shall submit to Congress a 
report setting forth the current amount of the contingent outstanding 
liability of the United States under the vessel war risk insurance 
program under title XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1281 et seq.).
    ``(h) Definitions.--In this section:
            ``(1) Vessel war risk insurance.--The term `vessel war risk 
        insurance' means insurance and reinsurance provided through 
        policies issued by the Secretary of Transportation under title 
        XII of the Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et 
        seq.), that is provided by that Secretary without premium at the 
        request of the Secretary of Defense and is covered by an 
        indemnity agreement between the Secretary of Transportation and 
        the Secretary of Defense.
            ``(2) Vessel war risk insurance fund.--The term `Vessel War 
        Risk Insurance Fund' means the insurance fund referred to in the 
        first sentence of section 1208(a) of the Merchant Marine Act, 
        1936 (46 U.S.C. App. 1288(a)).
            ``(3) Loss.--The term `loss' includes damage to or 
        destruction of property, personal injury or death, and other 
        liabilities and expenses covered by the vessel war risk 
        insurance.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2644, as added by 
section 906, the following new item:

``2645. Indemnification of Department of Transportation for losses 
           covered by vessel war risk insurance.''.

SEC. 1080. DESIGNATION <<NOTE: Virginia. 16 USC 431 note.>> OF 
                          MEMORIAL AS NATIONAL D-DAY 
                          MEMORIAL.

    (a) Designation.--The memorial to be constructed by the National D-
Day Memorial Foundation in Bedford, Virginia, is hereby designated as a 
national memorial to be known as the ``National D-Day Memorial''. The 
memorial shall serve to honor the members of the Armed Forces of the 
United States who served in the liberation of Normandy, France, in June 
1944.

[[Page 110 STAT. 2671]]

    (b) Public Proclamation.--The President is requested and urged to 
issue a public proclamation acknowledging the designation of the 
memorial to be constructed by the National D-Day Memorial Foundation in 
Bedford, Virginia, as the National D-Day Memorial.
    (c) Maintenance of Memorial.--All expenses for maintenance and care 
of the memorial shall be paid for with non-Federal funds, including 
funds provided by the National D-Day Memorial Foundation. The United 
States shall not be liable for any expense incurred for the maintenance 
and care of the memorial.
SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE 
                          AGREEMENT BETWEEN UNITED STATES AND 
                          JAPAN.

    (a) Findings.--Congress makes the following findings:
            (1) <<NOTE: William J. Clinton. Ryutaro Hashimoto.>> The 
        United States and Japan share a long and important bilateral 
        relationship which serves as an anchor of peace and stability in 
        the Asia Pacific region, an alliance which was reaffirmed at the 
        recent summit meeting between President Clinton and Prime 
        Minister Hashimoto in Tokyo.
            (2) The Japanese economy has experienced difficulty over the 
        past few years, demonstrating that it is no longer possible for 
        Japan, the world's second largest economy, to use exports as the 
        sole engine of economic growth, but that the Government of Japan 
        must promote deregulation of its domestic economy in order to 
        increase economic growth.
            (3) Deregulation of the Japanese economy requires 
        government attention to the removal of barriers to imports of 
        manufactured goods.
            (4) The United States-Japan Semiconductor Trade 
        Agreement has begun the process of deregulation in the 
        semiconductor sector and is opening the Japanese market to 
        competitive foreign products.
            (5) The United States-Japan Semiconductor Trade Agreement 
        has put in place both government-to-government and industry-to-
        industry mechanisms which have played a vital role in allowing 
        cooperation to replace conflict in this important high 
        technology sector.
            (6) The mechanisms include joint calculation of foreign 
        market share, deterrence of dumping, and promotion of industrial 
        cooperation in the design of foreign semiconductor devices.
            (7) Because of these actions under the United States-Japan 
        Semiconductor Trade Agreement, the United States and Japan today 
        enjoy trade in semiconductors which is mutually beneficial, 
        harmonious, and free from the friction that once characterized 
        the semiconductor industry.
            (8) Because of structural barriers in Japan, a gap still 
        remains between the share of the world market for semiconductor 
        products outside Japan that the United States and other foreign 
        semiconductor sources are able to capture through 
        competitiveness and the share of the Japanese semiconductor 
        market that the United States and those other sources are able 
        to capture through competitiveness, and that gap is consistent 
        across the full range of semiconductor products as well as a 
        full range of end-use applications.
            (9) The competitiveness and health of the United States 
        semiconductor industry is of critical importance to the overall

[[Page 110 STAT. 2672]]

        economic well-being and high-technology defense capabilities of 
        the United States.
            (10) The economic interests of both the United States and 
        Japan are best served by well functioning, open markets, 
        deterrence of dumping, and continuing good cooperative 
        relationships in all sectors, including semiconductors.
            (11) A strong and healthy military and political alliance 
        between the United States and Japan requires continuation of the 
        industrial and economic cooperation promoted by the United 
        States-Japan Semiconductor Trade Agreement.
            (12) President Clinton has called on the Government of Japan 
        to agree to a continuation of the United States-Japan 
        Semiconductor Trade Agreement beyond the current agreement's 
        expiration on July 31, 1996.
            (13) The Government of Japan has opposed any 
        continuation of the United States-Japan Semiconductor Trade 
        Agreement to promote cooperation in United States-Japan 
        semiconductor trade.

    (b) Sense of Congress.--On the basis of the findings contained in 
subsection (a), it is the sense of Congress that--
            (1) it is regrettable that the Government of Japan has 
        refused to consider continuation of the United States-Japan 
        Semiconductor Trade Agreement to ensure that cooperation 
        continues in the semiconductor sector beyond the expiration of 
        the agreement on July 31, 1996; and
            (2) the President should take all necessary and appropriate 
        actions to ensure the resumption and extension of the United 
        States-Japan Semiconductor Trade Agreement beyond July 31, 1996.

    (c) Definition.--For purposes of this section, the term ``United 
States-Japan Semiconductor Trade Agreement'' refers to the agreement 
between the United States and Japan concerning trade in semiconductor 
products, with arrangement, done by exchange of letters at Washington on 
June 11, 1991.
SEC. 1082. AGREEMENTS <<NOTE: 10 USC 168 note.>> FOR EXCHANGE OF 
                          DEFENSE PERSONNEL BETWEEN THE UNITED 
                          STATES AND FOREIGN COUNTRIES.

    (a) Authority To Enter Into International Exchange Agreements.--(1) 
The Secretary of Defense may enter into international defense personnel 
exchange agreements.
    (2) For purposes of this section, an international defense personnel 
exchange agreement is an agreement with the government of an ally of the 
United States or another friendly foreign country for the exchange of--
            (A) military and civilian personnel of the Department of 
        Defense; and
            (B) military and civilian personnel of the defense ministry 
        of that foreign government.

    (b) Assignment of Personnel.--(1) Pursuant to an international 
defense personnel exchange agreement, personnel of the defense ministry 
of a foreign government may be assigned to positions in the Department 
of Defense and personnel of the 
Department of Defense may be assigned to positions in the defense 
ministry of such foreign government. Positions to which exchanged 
personnel are assigned may include positions of instructors.

[[Page 110 STAT. 2673]]

    (2) An agreement for the exchange of personnel engaged in research 
and development activities may provide for assignment of Department of 
Defense personnel to positions in private industry that support the 
defense ministry of the host foreign government.
    (3) An individual may not be assigned to a position pursuant to an 
international defense personnel exchange agreement unless the assignment 
is acceptable to both governments.
    (c) Reciprocity of Personnel Qualifications Required.--Each 
government shall be required under an international defense personnel 
exchange agreement to provide personnel with qualifications, training, 
and skills that are essentially equal to those of the personnel provided 
by the other government.
    (d) Payment of Personnel Costs.--(1) Each government shall pay the 
salary, per diem, cost of living, travel costs, cost of language or 
other training, and other costs for its own personnel in accordance with 
the applicable laws and regulations of such government.
    (2) Paragraph (1) does not apply to the following costs:
            (A) The cost of temporary duty directed by the host 
        government.
            (B) The cost of training programs conducted to familiarize, 
        orient, or certify exchanged personnel regarding unique aspects 
        of the assignments of the exchanged personnel.
            (C) Costs incident to the use of the facilities of the host 
        government in the performance of assigned duties.

    (e) Prohibited Conditions.--No personnel exchanged pursuant to an 
agreement under this section may take or be required to take an oath of 
allegiance to the host country or to hold an official capacity in the 
government of such country.
    (f) Relationship to Other Authority.--The requirements in 
subsections (c) and (d) shall apply in the exercise of any authority of 
the Secretaries of the military departments to enter into an agreement 
with the government of a foreign country to provide for the exchange of 
members of the armed forces and military personnel of the foreign 
country. The Secretary of Defense may prescribe regulations for the 
application of such subsections in the exercise of such authority.

SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

    It is the sense of the Senate that, notwithstanding any other 
provision of law, in order to maximize the amount of equipment provided 
to the Government of Bosnia and Herzegovina under the authority 
contained in section 540 of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 
Stat. 737), the price of the transferred equipment shall not exceed the 
lowest level at which the same or similar equipment
has been transferred to any other country under any other United States 
Government program.

SEC. 1084. <<NOTE: President. 22 USC 1928 note.>> DEFENSE BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The President shall 
seek to have each nation that has cooperative military relations with 
the United States (including security agreements, basing arrangements, 
or mutual participation in multinational military organizations or 
operations) take one or more of the following actions:
            (1) Increase its financial contributions to the payment of 
        the nonpersonnel costs incurred by the United States Government 
        for stationing United States military personnel in that

[[Page 110 STAT. 2674]]

        nation, with a goal of achieving by September 30, 2000, 75 
        percent of such costs. An increase in financial contributions by 
        any nation under this paragraph may include the elimination of 
        taxes, fees, or other charges levied on United States military 
        personnel, equipment, or facilities stationed in that nation.
            (2) Increase its annual budgetary outlays for national 
        defense as a percentage of its gross domestic product by 10 
        percent or at least to a level commensurate to that of the 
        United States by September 30, 1997.
            (3) Increase its annual budgetary outlays for foreign 
        assistance (to promote democratization, economic stabilization, 
        transparency arrangements, defense economic conversion, respect 
        for the rule of law, and internationally recognized human 
        rights) by 10 percent or at least to a level commensurate to 
        that of the United States by September 30, 1997.
            (4) Increase the amount of military assets (including 
        personnel, equipment, logistics, support and other resources) 
        that it contributes, or would be prepared to contribute, to 
        multinational military activities worldwide.

    (b) Authorities To Encourage Actions by United States Allies.--In 
seeking the actions described in subsection (a) with respect to any 
nation, or in response to a failure by any nation to undertake one or 
more of such actions, the President may take any of the following 
measures to the extent otherwise authorized by law:
            (1) Reduce the end strength level of members of the Armed 
        Forces assigned to permanent duty ashore in that nation.
            (2) Impose on that nation fees or other charges similar to 
        those that such nation imposes on United States forces stationed 
        in that nation.
            (3) Reduce (through rescission, impoundment, or other 
        appropriate procedures as authorized by law) the amount the 
        United States contributes to the NATO Civil Budget, Military 
        Budget, or Security Investment Program.
            (4) Suspend, modify, or terminate any bilateral security 
        agreement the United States has with that nation, consistent 
        with the terms of such agreement.
            (5) Reduce (through rescission, impoundment, or other 
        appropriate procedures as authorized by law) any United States 
        bilateral assistance appropriated for that nation.
            (6) Take any other action the President determines to be 
        appropriate as authorized by law.

    (c) Report on Progress in Increasing Allied Burdensharing.--Not 
later than March 1, 1997, the Secretary of Defense shall submit to 
Congress a report on--
            (1) steps taken by other nations to complete the actions 
        described in subsection (a);
            (2) all measures taken by the President, including those 
        authorized in subsection (b), to achieve the actions described 
        in subsection (a); and
            (3) the budgetary savings to the United States that are 
        expected to accrue as a result of the steps described under 
        paragraph (1).

    (d) Report on National Security Bases for Forward Deployment and 
Burdensharing Relationships.--(1) In order to ensure the best allocation 
of budgetary resources, the President shall undertake a review of the 
status of elements of the United

[[Page 110 STAT. 2675]]

States Armed Forces that are permanently stationed outside the United 
States. The review shall include an assessment of the following:
            (A) The alliance requirements that are to be found in 
        agreements between the United States and other countries.
            (B) The national security interests that support permanently 
        stationing elements of the United States Armed Forces outside 
        the United States.
            (C) The stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (D) The alternatives available to forward deployment (such 
        as material prepositioning, enhanced airlift and sealift, or 
        joint training operations) to meet such alliance requirements or 
        national security interests, with such alternatives identified 
        and described in detail.
            (E) The costs and force structure configurations associated 
        with such alternatives to forward deployment.
            (F) The financial contributions that allies of the United 
        States make to common defense efforts (to promote 
        democratization, economic stabilization, transparency 
        arrangements, defense economic conversion, respect for the rule 
        of law, and internationally recognized human rights).
            (G) The contributions that allies of the United States make 
        to meeting the stationing costs associated with the forward 
        deployment of elements of the United States Armed Forces.
            (H) The annual expenditures of the United States and its 
        allies on national defense, and the relative percentages of each 
        nation's gross domestic product constituted by those 
        expenditures.

    (2) The President shall submit to Congress a report on the review 
under paragraph (1). The report shall be submitted not later than March 
1, 1997, in classified and unclassified form.
    (e) Report Date.--Section 1003(c) of Public Law 98-515 is amended by 
striking out ``each year'' and inserting ``by March 1, 1998, and every 
other year thereafter''.

 TITLE XI--NATIONAL <<NOTE: National Imagery and Mapping Agency Act of 
1996.>> IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.
Sec. 1102. Findings.
Sec. 1103. Role of Director of Central Intelligence in appointment and 
           evaluation of certain intelligence officials.

                   Subtitle A--Establishment of Agency

Sec. 1111. Establishment.
Sec. 1112. Missions and authority.
Sec. 1113. Transfers of personnel and assets.
Sec. 1114. Compatibility with authority under the National Security Act 
           of 1947.
Sec. 1115. Creditable civilian service for career conditional employees 
           of the 
           Defense Mapping Agency.
Sec. 1116. Saving provisions.
Sec. 1117. Definitions.
Sec. 1118. Authorization of appropriations.

          Subtitle B--Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.
Sec. 1122. Reference amendments.
Sec. 1123. Headings and clerical amendments.
Sec. 1124. Effective date.

[[Page 110 STAT. 2676]]

SEC. 1101. <<NOTE: 10 USC 441 note.>> SHORT TITLE.

    This title may be cited as the ``National Imagery and Mapping Agency 
Act of 1996''.

SEC. 1102. <<NOTE: 10 USC 441 note.>> FINDINGS.

    Congress makes the following findings:
            (1) There is a need within the Department of Defense and the 
        Intelligence Community of the United States to provide a single 
        agency focus for the growing number and diverse types of 
        customers for imagery and geospatial information resources 
        within the Government, to ensure visibility and accountability 
        for those resources, and to harness, leverage, and focus rapid 
        technological developments to serve the imagery, imagery 
        intelligence, and geospatial information customers.
            (2) There is a need for a single Government agency to 
        solicit and advocate the needs of that growing and diverse pool 
        of customers.
            (3) A single combat support agency dedicated to imagery, 
        imagery intelligence, and geospatial information could act as a 
        focal point for support of all imagery intelligence and 
        geospatial information customers, including customers in the 
        Department of Defense, the Intelligence Community, and related 
        agencies outside of the Department of Defense.
            (4) Such an agency would best serve the needs of the 
        imagery, imagery intelligence, and geospatial information 
        customers if it were organized--
                    (A) to carry out its mission responsibilities under 
                the authority, direction, and control of the Secretary 
                of Defense, with the advice of the Chairman of the Joint 
                Chiefs of Staff; and
                    (B) to carry out its responsibilities to national 
                intelligence customers in accordance with policies and 
                priorities established by the Director of Central 
                Intelligence.

SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND 
            EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

    (a) In General.--Section 201 of title 10, United States Code, is 
amended to read as follows:
``Sec. 201. Certain intelligence officials: consultation and 
                  concurrence regarding appointments; evaluation 
                  of performance

    ``(a) Consultation Regarding Appointment.--Before submitting a 
recommendation to the President regarding the appointment of an 
individual to the position of Director of the Defense Intelligence 
Agency, the Secretary of Defense shall consult with the Director of 
Central Intelligence regarding the recommendation.
    ``(b) Concurrence in Appointment.--(1) Before submitting a 
recommendation to the President regarding the appointment of an 
individual to a position referred to in paragraph (2), the Secretary of 
Defense shall seek the concurrence of the Director of Central 
Intelligence in the recommendation. If the Director does not concur in 
the recommendation, the Secretary may make the recommendation to the 
President without the Director's concur

[[Page 110 STAT. 2677]]

rence, but shall include in the recommendation a statement that the 
Director does not concur in the recommendation.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance Office.
            ``(C) The Director of the National Imagery and Mapping 
        Agency.

    ``(c) Performance Evaluations.--(1) The Director of Central 
Intelligence shall provide annually to the Secretary of Defense, for the 
Secretary's consideration, an evaluation of the performance of the 
individuals holding the positions referred to in paragraph (2) in 
fulfilling their respective responsibilities with regard to the National 
Foreign Intelligence Program.
    ``(2) The positions referred to in paragraph (1) are the following:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance Office.
            ``(C) The Director of the National Imagery and Mapping 
        Agency.''.

    (b) Clerical Amendment.--The item relating to section 201 in the 
table of sections at the beginning of subchapter II of chapter 8 of such 
title is amended to read as follows:

``201. Certain intelligence officials: consultation and concurrence 
           regarding appointments; evaluation of performance.''.

                   Subtitle A--Establishment of Agency

SEC. 1111. <<NOTE: 10 USC 441 note.>> ESTABLISHMENT.

    (a) Establishment.--There is hereby established in the Department of 
Defense a Defense Agency to be known as the National Imagery and Mapping 
Agency.
    (b) Transfer of Functions From Department of Defense Entities.--The 
missions and functions of the following elements of the Department of 
Defense are transferred to the National Imagery and Mapping Agency:
            (1) The Defense Mapping Agency.
            (2) The Central Imagery Office.
            (3) Other elements of the Department of Defense as specified 
        in the classified annex to this Act.

    (c) Transfer of Functions From Central Intelligence Agency.--The 
missions and functions of the following elements of the Central 
Intelligence Agency are transferred to the National Imagery and Mapping 
Agency:
            (1) The National Photographic Interpretation Center.
            (2) Other elements of the Central Intelligence Agency as 
        specified in the classified annex to this Act.

    (d) Preservation of Level and Quality of Imagery Intelligence 
Support to All-Source Analysis and Production.--In managing the 
establishment of the National Imagery and Mapping Agency, the Secretary 
of Defense, in consultation with the Director of Central Intelligence, 
shall ensure that imagery intelligence support provided to all-source 
analysis and production is in no way degraded or compromised.

SEC. 1112. MISSIONS AND AUTHORITY.

    (a) Agency Charter.--Part I of subtitle A of title 10, United States 
Code, is amended--

[[Page 110 STAT. 2678]]

            (1) by redesignating chapter 22 as chapter 23; and
            (2) by inserting after chapter 21 the following new 
        chapter 22:

            ``CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

``Subchapter                                                        Sec.
``I. Missions and Authority.......................................   441
``II. Maps, Charts, and Geodetic Products.........................   451
``III. Personnel Management.......................................   461
``IV. Definitions.................................................   467

                 ``SUBCHAPTER I--MISSIONS AND AUTHORITY

``Sec.
``441. Establishment.
``442. Missions.
``443. Imagery intelligence and geospatial information: support for 
           foreign countries.
``444. Support from Central Intelligence Agency.
``445. Protection of agency identifications and organizational 
           information.

``Sec. 441. Establishment

    ``(a) Establishment.--The National Imagery and Mapping Agency is a 
combat support agency of the Department of Defense and has significant 
national missions.
    ``(b) Director.--(1) The Director of the National Imagery and 
Mapping Agency is the head of the agency.
    ``(2) Upon a vacancy in the position of Director, the Secretary of 
Defense shall recommend to the President an individual for appointment 
to the position.
    ``(3) If an officer of the armed forces on active duty is appointed 
to the position of Director, the position shall be treated as having 
been designated by the President as a position of importance and 
responsibility for purposes of section 601 of this title and shall carry 
the grade of lieutenant general, or, in the case of an officer of the 
Navy, vice admiral.
    ``(c) Director of Central Intelligence Collection Tasking 
Authority.--Unless otherwise directed by the President, the Director of 
Central Intelligence shall have authority (except as otherwise agreed by 
the Director and the Secretary of Defense) to--
            ``(1) approve collection requirements levied on national 
        imagery collection assets;
            ``(2) determine priorities for such requirements; and
            ``(3) resolve conflicts in such priorities.

    ``(d) Availability and Continued Improvement of Imagery Intelligence 
Support to All-Source Analysis and Production Function.--The Secretary 
of Defense, in consultation with the Director of Central Intelligence, 
shall take all necessary steps to ensure the full availability and 
continued improvement of imagery intelligence support for all-source 
analysis and production.

``Sec. 442. Missions

    ``(a) National Security Missions.--(1) The National Imagery and 
Mapping Agency shall, in support of the national security objectives of 
the United States, provide the following:
            ``(A) Imagery.
            ``(B) Imagery intelligence.
            ``(C) Geospatial information.

[[Page 110 STAT. 2679]]

    ``(2) Imagery, intelligence, and information provided in carrying 
out paragraph (1) shall be timely, relevant, and accurate.
    ``(b) Navigation Information.--The National Imagery and Mapping 
Agency shall improve means of navigating vessels of the Navy and the 
merchant marine by providing, under the authority of the Secretary of 
Defense, accurate and inexpensive nautical charts, sailing directions, 
books on navigation, and manuals of instructions for the use of all 
vessels of the United States and of navigators generally.
    ``(c) Maps, Charts, Etc.--The National Imagery and Mapping Agency 
shall prepare and distribute maps, charts, books, and geodetic products 
as authorized under subchapter II of this chapter.

    ``(d) National Missions.--The National Imagery and Mapping Agency 
also has national missions as specified in section 120(a) of the 
National Security Act of 1947.
    ``(e) Systems.--The National Imagery and Mapping Agency may, in 
furtherance of a mission of the Agency, design, develop, deploy, 
operate, and maintain systems related to the processing and 
dissemination of imagery intelligence and geospatial information that 
may be transferred to, accepted or used by, or used on behalf of--
            ``(1) the armed forces, including any combatant command, 
        component of a combatant command, joint task force, or tactical 
        unit; or
            ``(2) any other department or agency of the United States.
``Sec. 443. Imagery intelligence and geospatial information: 
                  support for foreign countries

    ``(a) Use of Appropriated Funds.--The Director of the National 
Imagery and Mapping Agency may use appropriated funds available to the 
National Imagery and Mapping Agency to provide foreign countries with 
imagery intelligence and geospatial information support.

    ``(b) Use of Funds Other Than Appropriated Funds.--The Director may 
use funds other than appropriated funds to provide foreign countries 
with imagery intelligence and geospatial information support, 
notwithstanding provisions of law relating to the expenditure of funds 
of the United States, except that--
            ``(1) no such funds may be expended, in whole or in part, by 
        or for the benefit of the National Imagery and Mapping Agency 
        for a purpose for which Congress had previously denied funds.
            ``(2) proceeds from the sale of imagery intelligence or 
        geospatial information items may be used only to purchase 
        replacement items similar to the items that are sold; and
            ``(3) the authority provided by this subsection may not be 
        used to acquire items or services for the principal benefit of 
        the United States.

    ``(c) Accommodation Procurements.--The authority under this section 
may be exercised to conduct accommodation procurements on behalf of 
foreign countries.
    ``(d) Coordination With Director of Central Intelligence.--The 
Director of the Agency shall coordinate with the Director of Central 
Intelligence any action under this section that involves imagery 
intelligence or intelligence products or involves providing support to 
an intelligence or security service of a foreign country.

[[Page 110 STAT. 2680]]

``Sec. 444. Support from Central Intelligence Agency

    ``(a) Support Authorized.--The Director of Central Intelligence may 
provide support in accordance with this section to the Director of the 
National Imagery and Mapping Agency. The Director of the National 
Imagery and Mapping Agency may accept support provided under this 
section.
    ``(b) Administrative and Contract Services.--(1) In furtherance of 
the national intelligence effort, the Director of Central Intelligence 
may provide administrative and contract services to the National Imagery 
and Mapping Agency as if that agency were an organizational element of 
the Central Intelligence Agency.
    ``(2) Services provided under paragraph (1) may include the services 
of security police. For purposes of section 15 of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation of the 
National Imagery and Mapping Agency that is provided security police 
services under this section shall be considered an installation of the 
Central Intelligence Agency.
    ``(3) Support provided under this subsection shall be provided under 
terms and conditions agreed upon by the Secretary of Defense and the 
Director of Central Intelligence.
    ``(c) Detail of Personnel.--The Director of Central Intelligence may 
detail personnel of the Central Intelligence Agency indefinitely to the 
National Imagery and Mapping Agency without regard to any limitation on 
the duration of interagency details of Federal Government personnel.
    ``(d) Reimbursable or Nonreimbursable Support.--Support under this 
section may be provided and accepted on either a reimbursable basis or a 
nonreimbursable basis.
    ``(e) Authority To Transfer Funds.--(1) The Director of the National 
Imagery and Mapping Agency may transfer funds available for that agency 
to the Director of Central Intelligence for the Central Intelligence 
Agency.
    ``(2) The Director of Central Intelligence--
            ``(A) may accept funds transferred under paragraph 
        (1); and
            ``(B) shall expend such funds, in accordance with the 
        Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et 
        seq.), to provide administrative and contract services or detail 
        personnel to the National Imagery and Mapping Agency under this 
        section.
``Sec. 445. Protection of agency identifications and 
                  organizational information

    ``(a) Unauthorized Use of Agency Name, Initials, or Seal.--(1) 
Except with the written permission of the Secretary of Defense, no 
person may knowingly use, in connection with any merchandise, retail 
product, impersonation, solicitation, or commercial activity in a manner 
reasonably calculated
to convey the impression that such use is approved, endorsed, or 
authorized by the Secretary of Defense, any of the following:
            ``(A) The words `National Imagery and Mapping Agency', the 
        initials `NIMA', or the seal of the National Imagery and Mapping 
        Agency.
            ``(B) The words `Defense Mapping Agency', the initials 
        `DMA', or the seal of the Defense Mapping Agency.
            ``(C) Any colorable imitation of such words, initials, or 
        seals.

[[Page 110 STAT. 2681]]

    ``(2) Whenever it appears to the Attorney General that any person is 
engaged or about to engage in an act or practice which constitutes or 
will constitute conduct prohibited by paragraph (1), the Attorney 
General may initiate a civil proceeding in a district court of the 
United States to enjoin such act or practice. Such court shall proceed 
as soon as practicable to a hearing and determination of such action and 
may, at any time before such final determination, enter such restraining 
orders or prohibitions, or take such other action as is warranted, to 
prevent injury to the United States or to any person or class of persons 
for whose protection the action is brought.

          ``SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

``Sec.
``451. Maps, charts, and books.
``452. Pilot charts.
``453. Prices of maps, charts, and navigational publications.
``454. Exchange of mapping, charting, and geodetic data with foreign 
           countries and international organizations.
``455. Maps, charts, and geodetic data: public availability; exceptions.
``456. Civil actions barred.

                 ``SUBCHAPTER III--PERSONNEL MANAGEMENT

``Sec.
``461. Management rights.

``Sec. 461. Management rights

    ``(a) Scope.--If there is no obligation under the provisions of 
chapter 71 of title 5 for the head of an agency of the United States to 
consult or negotiate with a labor organization on a particular matter by 
reason of that matter being covered by a provision of law or a 
Governmentwide regulation, the Director of the National Imagery and 
Mapping Agency is not obligated to consult or negotiate with a labor 
organization on that matter even if that provision of law or regulation 
is inapplicable to the National Imagery and Mapping Agency.
    ``(b) Bargaining Units.--The National Imagery and Mapping Agency 
shall accord exclusive recognition to a labor organization under section 
7111 of title 5 only for a bargaining unit that was recognized as 
appropriate for the Defense Mapping Agency on the day before the date on 
which employees and positions of the Defense Mapping Agency in that 
bargaining unit became employees and positions of the National Imagery 
and Mapping Agency under the National Imagery and Mapping Agency Act of 
1996 (title XI of the National Defense Authorization Act for Fiscal Year 
1997).
    ``(c) Termination of Bargaining Unit Coverage of Position Modified 
To Affect National Security Directly.--(1) If the Director of the 
National Imagery and Mapping Agency determines that the responsibilities 
of a position within a collective bargaining unit should be modified to 
include intelligence, counterintelligence, investigative, or security 
duties not previously assigned to that position and that the performance 
of the newly assigned duties directly affects the national security of 
the United States, then, upon such a modification of the 
responsibilities of that position, the position shall cease to be 
covered by the collective bargaining unit and the employee in that 
position shall cease to be entitled

[[Page 110 STAT. 2682]]

to representation by a labor organization accorded exclusive recognition 
for that collective bargaining unit.
    ``(2) A determination described in paragraph (1) that is made by the 
Director of the National Imagery and Mapping Agency may not be reviewed 
by the Federal Labor Relations Authority or any court of the United 
States.

                      ``SUBCHAPTER IV--DEFINITIONS

``Sec.
``467. Definitions.

``Sec. 467. Definitions

    ``In this chapter:
            ``(1) The term `function' means any duty, obligation, 
        responsibility, privilege, activity, or program.
            ``(2)(A) The term `imagery' means, except as provided in 
        subparagraph (B), a likeness or presentation of any natural or 
        manmade feature or related object or activity and the positional 
        data acquired at the same time the likeness or representation 
        was acquired, including--
                    ``(i) products produced by space-based national 
                intelligence reconnaissance systems; and
                    ``(ii) likenesses or presentations produced by 
                satellites, airborne platforms, unmanned aerial 
                vehicles, or other similar means.
            ``(B) Such term does not include handheld or clandestine 
        photography taken by or on behalf of human intelligence 
        collection organizations.
            ``(3) The term `imagery intelligence' means the technical, 
        geographic, and intelligence information derived through the 
        interpretation or analysis of imagery and collateral materials.
            ``(4) The term `geospatial information' means information 
        that identifies the geographic location and characteristics of 
        natural or constructed features and boundaries on the earth and 
        includes--
                    ``(A) statistical data and information derived from, 
                among other things, remote sensing, mapping, and 
                surveying technologies;
                    ``(B) mapping, charting, and geodetic data; and
                    ``(C) geodetic products, as defined in section 
                455(c) of this title.''.

    (b) Transfer of Defense Mapping Agency Provisions.--(1) Sections 
2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United States Code, 
are transferred to subchapter II of chapter 22 
of such title, as added by subsection (a), inserted in that sequence in 
such subchapter following the table of sections, and redesignated in 
accordance with the following table:

Section                                                       Section as
transferred                                                 redesignated
    2792..........................................................  451 
    2793..........................................................  452 
    2794..........................................................  453 
    2795..........................................................  454 
    2796..........................................................  455 
    2798..........................................................  456.

    (2) Sections 451(1), 452, 453, 454, and 455 (in subsections (a) and 
(b)(1)(C)), and 456 of title 10, United States Code, as

[[Page 110 STAT. 2683]]

transferred and redesignated by paragraph (1), are amended by striking 
out ``Defense Mapping Agency'' each place it appears and inserting in 
lieu thereof ``National Imagery and Mapping Agency''.
    (c) Oversight of Agency as a Combat Support Agency.--Section 193 of 
title 10, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking out the caption and inserting in 
                lieu thereof ``Review of National Security Agency and 
                National Imagery and Mapping Agency.--'';
                    (B) in paragraph (1)--
                          (i) by inserting ``and the National Imagery 
                      and Mapping Agency'' after ``the National Security 
                      Agency''; and
                          (ii) by striking out ``the Agency'' and 
                      inserting in lieu thereof ``that the agencies''; 
                      and
                    (C) in paragraph (2), by inserting ``and the 
                National Imagery and Mapping Agency'' after ``the 
                National Security Agency'';
            (2) in subsection (e)--
                    (A) by striking out ``DIA and NSA'' in the caption 
                and inserting in lieu thereof the following: ``DIA, NSA, 
                and NIMA''; and
                    (B) by striking out ``and the National Security 
                Agency'' and inserting in lieu thereof ``, the National 
                Security Agency, and the National Imagery and Mapping 
                Agency''; and
            (3) in subsection (f), by striking out paragraph (4) and 
        inserting in lieu thereof the following:
            ``(4) The National Imagery and Mapping Agency.''.

    (d) Consolidation and Standardization of Exemptions From Disclosure 
of Organizational and Personnel Information.--Chapter 21 of title 10, 
United States Code, is amended by striking out sections 424 and 425 and 
inserting in lieu thereof the following:
``Sec. 424. Disclosure of organizational and personnel 
                  information: exemption for Defense Intelligence 
                  Agency, National Reconnaissance Office, and 
                  National Imagery and Mapping Agency

    ``(a) Exemption From Disclosure.--Except as required by the 
President or as provided in subsection (c), no provision of law shall be 
construed to require the disclosure of--
            ``(1) the organization or any function of an organization of 
        the Department of Defense named in subsection (b); or
            ``(2) the number of persons employed by or assigned or 
        detailed to any such organization or the name, official title, 
        occupational series, grade, or salary of any such person.

    ``(b) Covered Organizations.--This section applies to the following 
organizations of the Department of Defense:
            ``(1) The Defense Intelligence Agency.
            ``(2) The National Reconnaissance Office.
            ``(3) The National Imagery and Mapping Agency.

    ``(c) Provision of Information to Congress.--Subsection (a) does not 
apply with respect to the provision of information to Congress.''.
    (e) Special Printing Authority for Agency.--(1) Section 207(a)(2)(B) 
of the Legislative Branch Appropriations Act, 1993

[[Page 110 STAT. 2684]]

(Public Law 102-392; 44 U.S.C. 501 note), is amended by inserting 
``National Imagery and Mapping Agency,'' after ``Defense Intelligence 
Agency,''.

    (2) Section 1336 of title 44, United States Code, is amended--
            (A) by striking out ``Secretary of the Navy'' and inserting 
        in lieu thereof ``Director of the National Imagery and Mapping 
        Agency''; and
            (B) by striking out ``United States Naval Oceanographic 
        Office'' and inserting in lieu thereof ``National Imagery and 
        Mapping Agency''.

SEC. 1113. <<NOTE: 10 USC 441 note.>> TRANSFERS OF PERSONNEL AND ASSETS.

    (a) Personnel and Assets.--Subject to subsections (b) and (c), the 
personnel, assets, unobligated balances of appropriations and 
authorizations of appropriations, and, to the extent jointly determined 
appropriate by the Secretary of Defense and Director of Central 
Intelligence, obligated balances of appropriations and authorizations of 
appropriations employed, used, held, arising from, or available in 
connection with the missions and functions transferred under section 
1111(b) or section 1111(c) are transferred to the National Imagery and 
Mapping Agency. Transfers of appropriations from the Central 
Intelligence Agency under this subsection shall be made in accordance 
with section 1531 of title 31, United States Code.

    (b) Determination of CIA Positions To Be Transferred.--Not earlier 
than two years after the effective date of this subtitle, the Secretary 
of Defense and the Director of Central Intelligence shall determine 
which, if any, positions and personnel of the Central Intelligence 
Agency are to be transferred to the National Imagery and Mapping Agency. 
The positions to be transferred, and the employees serving in such 
positions, shall be transferred to the National Imagery and Mapping 
Agency under terms and conditions prescribed by the Secretary of Defense 
and the Director of Central Intelligence.
    (c) Rule For CIA Imagery Activities Only Partially Transferred.--If 
the National Photographic Interpretation Center of the Central 
Intelligence Agency or any imagery-related activity of the Central 
Intelligence Agency authorized to be performed by the National Imagery 
and Mapping Agency is not completely transferred to the National Imagery 
and Mapping Agency, the Secretary of Defense and the Director of Central 
Intelligence shall--
            (1) jointly determine which, if any, contracts, leases, 
        property, and records employed, used, held, arising from, 
        available to, or otherwise relating to such Center or activity 
        is to be transferred to the National Imagery and Intelligence 
        Agency; and
            (2) provide by written agreement for the transfer of such 
        items.
SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL 
                          SECURITY ACT OF 1947.

    (a) Agency Functions.--Paragraph (2) of section 105(b) of the 
National Security Act of 1947 (50 U.S.C. 403-5(b)) is amended to read as 
follows:
            ``(2) through the National Imagery and Mapping Agency 
        (except as otherwise directed by the President or the National 
        Security Council), with appropriate representation from the

[[Page 110 STAT. 2685]]

        intelligence community, the continued operation of an effective 
        unified organization within the Department of Defense--
                    ``(A) for carrying out tasking of imagery 
                collection;
                    ``(B) for the coordination of imagery processing and 
                exploitation activities;
                    ``(C) for ensuring the dissemination of imagery in a 
                timely manner to authorized recipients; and
                    ``(D) notwithstanding any other provision of law, 
                for--
                          ``(i) prescribing technical architecture and 
                      standards related to imagery intelligence and 
                      geospatial information and ensuring compliance 
                      with such architecture and standards; and
                          ``(ii) developing and fielding systems of 
                      common concern related to imagery intelligence and 
                      geospatial information;''.

    (b) National Mission.--Title I of such Act (50 U.S.C. 402 et seq.) 
is amended by adding at the end the following new section:

        ``national mission of national imagery and mapping agency

    ``Sec. 120. <<NOTE: 50 USC 404e.>> (a) In General.--In addition to 
the Department of Defense missions set forth in section 442 of title 10, 
United States Code, the National Imagery and Mapping Agency shall 
support the imagery requirements of the Department of State and other 
departments and agencies of the United States outside the Department of 
Defense.

    ``(b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities governing the 
collection of national intelligence by the National Imagery and Mapping 
Agency under subsection (a).
    ``(c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and policies as 
the Director and the Secretary of Defense jointly determine necessary to 
review and correct deficiencies identified in the capabilities of the 
National Imagery and Mapping Agency to accomplish assigned national 
missions, including support to the all-source analysis and production 
process. The Director shall consult with the Secretary of Defense on the 
development and implementation of such programs and policies. The 
Secretary shall obtain the advice of the Chairman of the Joint Chiefs of 
Staff regarding the matters on which the Director and the Secretary are 
to consult under the preceding sentence.''.
    (c) Tasking of Imagery Assets.--Title I of such Act is further 
amended by adding at the end the following new section:

                     ``collection tasking authority

    ``Sec. 121. <<NOTE: 50 USC 404f.>> Unless otherwise directed by the 
President, the Director of Central Intelligence shall have authority 
(except as otherwise agreed by the Director and the Secretary of 
Defense) to--
            ``(1) approve collection requirements levied on national 
        imagery collection assets;
            ``(2) determine priorities for such requirements; and
            ``(3) resolve conflicts in such priorities.''.

[[Page 110 STAT. 2686]]

    (d) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by inserting after the item relating to section 
109 the following new items:

``Sec. 120. National mission of National Imagery and Mapping Agency.
``Sec. 121. Collection tasking authority.''.

SEC. 1115. CREDITABLE <<NOTE: 10 USC 441 note.>> CIVILIAN SERVICE 
                          FOR CAREER CONDITIONAL EMPLOYEES OF THE 
                          DEFENSE MAPPING AGENCY.

    In the case of an employee of the National Imagery and Mapping 
Agency who, on the day before the effective date of this title, was an 
employee of the Defense Mapping Agency in a career-conditional status, 
the continuous service of that employee as an employee of the National 
Imagery and Mapping Agency on and after such date shall be considered 
creditable service for the purpose of any determination of the career 
status of the employee.

SEC. 1116. <<NOTE: 10 USC 441 note.>> SAVING PROVISIONS.

    (a) Continuing Effect on Legal Documents.--All orders, 
determinations, rules, regulations, permits, agreements, international 
agreements, grants, contracts, leases, certificates, licenses, 
registrations, privileges, and other administrative actions--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        connection with any of the functions which are transferred under 
        this title or any function that the National Imagery and Mapping 
        Agency is authorized to perform by law, and
            (2) which are in effect at the time this title takes effect, 
        or were final before the effective date of this title and are to 
        become effective on or after the effective date of this title,

shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary of Defense, the Director of the National 
Imagery and Mapping Agency or other authorized official, a court of 
competent jurisdiction, or by operation of law.
    (b) Proceedings Not Affected.--This title and the amendments made by 
this title shall not affect any proceedings, including notices of 
proposed rulemaking, or any application for any license, permit, 
certificate, or financial assistance pending before an element of the 
Department of Defense or Central Intelligence Agency at the time this 
title takes effect, with respect to function of that element transferred 
by section 1122, but such proceedings and applications shall be 
continued. Orders shall be issued in such proceedings, appeals shall be 
taken therefrom, and payments shall be made pursuant to such orders, as 
if this title had not been enacted, and orders issued in any such 
proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this section 
shall be deemed to prohibit the discontinuance or modification of any 
such proceeding under the same terms and conditions and to the same 
extent that such proceeding could have been discontinued or modified if 
this title had not been enacted.

SEC. 1117. <<NOTE: 10 USC 441 note.>> DEFINITIONS.

    In this subtitle, the terms ``function'', ``imagery'', ``imagery 
intelligence'', and ``geospatial information'' have the meanings given

[[Page 110 STAT. 2687]]

those terms in section 467 of title 10, United States Code, as added by 
section 1112.

SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

    Funds are authorized to be appropriated for the National Imagery and 
Mapping Agency for fiscal year 1997 in amounts and for purposes, and 
subject to the terms, conditions, limitations, restrictions, and 
requirements, that are set forth in the Classified Annex to this Act.

          Subtitle B--Conforming Amendments and Effective Dates

SEC. 1121. REDESIGNATION AND REPEALS.

    (a) Redesignation.--Chapter 23 of title 10, United States Code (as 
redesignated by section 1112(a)(1)) is amended by redesignating the 
sections in that chapter as sections 481 and 482, respectively.
    (b) Repeal of Superseded Law.--Chapter 167 of such title, as amended 
by section 1112(b), is repealed.

SEC. 1122. REFERENCE AMENDMENTS.

    (a) Title 5, United States Code.--Title 5, United States Code, is 
amended as follows:
            (1) Central imagery office.--Sections 2302(a)(2)(C)(ii), 
        3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 
        5102(a)(1) (in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), and 
        7323(b)(2)(B)(i)(XIII) are amended by striking out ``Central 
        Imagery Office'' and inserting in lieu thereof ``National 
        Imagery and Mapping Agency''.
            (2) Director, central imagery office.--Section 6339(a)(2)(E) 
        is amended by striking out ``Central Imagery Office, the 
        Director of the Central Imagery Office'' and inserting in lieu 
        thereof ``National Imagery and Mapping Agency, the Director of 
        the National Imagery and Mapping Agency''.

    (b) Other Laws.--The following provisions of law are amended by 
striking out ``Central Imagery Office'' and inserting in lieu thereof 
``National Imagery and Mapping Agency'':
            (1) National security act of 1947.--Section 3(4)(E) of the 
        National Security Act of 1947 (50 U.S.C. 401a(4)(E)).
            (2) Ethics in government act of 1978.--Section 105(a) of the 
        Ethics in Government Act of 1978 (Public Law 
        95-521; 5 U.S.C. App. 4). <<NOTE: 5 USC app. 105.>> 
            (3) Employee polygraph protection act.--Section 
        7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 1988 
        (Public Law 100-347; 29 U.S.C. 2006(b)(2)(A)(i)).

    (c) Cross Reference.--Section 82 of title 14, United States Code, is 
amended by striking out ``chapter 167'' and inserting in lieu thereof 
``subchapter II of chapter 22''.

SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--
            (1) The table of chapters at the beginning of subtitle A of 
        title 10, United States Code, is amended--
                    (A) by striking out the item relating to chapter 22 
                and inserting in lieu thereof the following:


[[Page 110 STAT. 2688]]


``22. National Imagery and Mapping Agency.........................  441 
``23. Miscellaneous Studies and Reports...........................471'';

                and
                    (B) by striking out the item relating to chapter 
                167.
            (2) The table of chapters at the beginning of part I of such 
        subtitle is amended by striking out the item relating to chapter 
        22 and inserting in lieu thereof the following:

``22. National Imagery and Mapping Agency.........................  441 
``23. Miscellaneous Studies and Reports...........................471'';

            (3) The table of chapters at the beginning of part IV of 
        such subtitle is amended by striking out the item relating to 
        chapter 167.
            (4) The items in the table of sections at the beginning of 
        chapter 23 of title 10, United States Code (as redesignated by 
        section 1112(a)(1)), are revised so as to reflect the 
        redesignations made by section 1121(a).

    (b) Title 44, United States Code.--
            (1) The heading of section 1336 of title 44, United States 
        Code, is amended to read as follows:
``Sec. 1336. National Imagery and Mapping Agency: special 
                    publications''.
            (2) The item relating to that section in the tables of 
        sections at the beginning of chapter 13 of such title is amended 
        to read as follows:

``1336. National Imagery and Mapping Agency: special publications.''.

SEC. 1124. <<NOTE: 10 USC 193 note.>> EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on October 1, 1996, or the date of the enactment of this Act, whichever 
is later.

TITLE <<NOTE: Reserve Forces Revitalization Act of 1996.>>  XII--RESERVE 
FORCES REVITALIZATION

                TITLE XII--RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.
Sec. 1202. Purpose.

                 Subtitle A--Reserve Component Structure

Sec. 1211. Reserve component commands.
Sec. 1212. Reserve component chiefs.
Sec. 1213. Review of active duty and Reserve general and flag officer 
           authorizations.
Sec. 1214. Guard and Reserve technicians.

               Subtitle B--Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and 
           Reserve ability to respond to emergencies.
Sec. 1232. Report to Congress concerning tax incentives for employers of 
           members of Reserve components.
Sec. 1233. Report to Congress concerning income insurance program for 
           activated Reservists.
Sec. 1234. Report to Congress concerning small business loans for 
           members 
           released from Reserve service during contingency operations.

                 Subtitle C--Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable 
           expenses.
Sec. 1252. Authority to pay transient housing charges for members 
           performing 
           active duty for training.

[[Page 110 STAT. 2689]]

Sec. 1253. Sense of Congress concerning quarters allowance during 
           service on 
           active duty for training.
Sec. 1254. Sense of Congress concerning military leave policy.
Sec. 1255. Reserve Forces Policy Board.
Sec. 1256. Report on parity of benefits for active duty service and 
           Reserve service.
Sec. 1257. Information on proposed funding for the Guard and Reserve 
           components in future-years defense programs.

SEC. 1201. <<NOTE: 10 USC 10001 note.>> SHORT TITLE.

    This title may be cited as the ``Reserve Forces Revitalization Act 
of 1996''.

SEC. 1202. <<NOTE: 10 USC 10001 note.>> PURPOSE.

    The purpose of this title is to revise the basic statutory 
authorities governing the organization and administration of the reserve 
components of the Armed Forces in order to recognize the realities of 
reserve component partnership in the Total Force and to better prepare 
the American citizen-soldier, sailor, airman, and Marine in time of 
peace for duties in war.

                 Subtitle A--Reserve Component Structure

SEC. 1211. RESERVE COMPONENT COMMANDS.

    (a) Establishment.--(1) Part I of subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1005 the following 
new chapter:

               ``CHAPTER 1006--RESERVE COMPONENT COMMANDS

``Sec.
``10171. United States Army Reserve Command.
``10172. Naval Reserve Force.
``10173. Marine Forces Reserve.
``10174. Air Force Reserve Command.

``Sec. 10171. United States Army Reserve Command

    ``(a) Command.--The United States Army Reserve Command is a separate 
command of the Army commanded by the Chief of Army Reserve.
    ``(b) Chain of Command.--Except as otherwise prescribed by the 
Secretary of Defense, the Secretary of the Army shall prescribe the 
chain of command for the United States Army Reserve Command.
    ``(c) Assignment of Forces.--The Secretary of the Army--
            ``(1) shall assign to the United States Army Reserve Command 
        all forces of the Army Reserve in the continental United States 
        other than forces assigned to the unified combatant command for 
        special operations forces established pursuant to section 167 of 
        this title; and
            ``(2) except as otherwise directed by the Secretary of 
        Defense in the case of forces assigned to carry out functions of 
        the Secretary of the Army specified in section 3013 of this 
        title, shall assign all such forces of the Army Reserve to the 
        commander of the United States Atlantic Command.

``Sec. 10172. Naval Reserve Force

    ``(a) Establishment of Command.--The Secretary of the Navy, with the 
advice and assistance of the Chief of Naval Operations, shall establish 
a Naval Reserve Force. The Naval Reserve Force shall be operated as a 
separate command of the Navy.

[[Page 110 STAT. 2690]]

    ``(b) Commander.--The Chief of Naval Reserve shall be the commander 
of the Naval Reserve Force. The commander of the Naval Reserve Force 
reports directly to the Chief of Naval Operations.
    ``(c) Assignment of Forces.--The Secretary of the Navy--
            ``(1) shall assign to the Naval Reserve Force specified 
        portions of the Naval Reserve other than forces assigned to the 
        unified combatant command for special operations forces 
        established pursuant to section 167 of this title; and
            ``(2) except as otherwise directed by the Secretary of 
        Defense in the case of forces assigned to carry out functions of 
        the Secretary of the Navy specified in section 5013 of this 
        title, shall assign to the combatant commands all such forces 
        assigned to the Naval Reserve Force under paragraph (1) in the 
        manner specified by the Secretary of Defense.

``Sec. 10173. Marine Forces Reserve

    ``(a) Establishment.--The Secretary of the Navy, with the advice and 
assistance of the Commandant of the Marine Corps, shall establish in the 
Marine Corps a command known as the Marine Forces Reserve.
    ``(b) Commander.--The Marine Forces Reserve is commanded by the 
Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve, 
reports directly to the Commandant of the Marine Corps.
    ``(c) Assignment of Forces.--The Commandant of the Marine Corps--
            ``(1) shall assign to the Marine Forces Reserve the forces 
        of the Marine Corps Reserve stationed in the continental United 
        States other than forces assigned to the unified combatant 
        command for special operations forces established pursuant to 
        section 167 of this title; and
            ``(2) except as otherwise directed by the Secretary of 
        Defense in the case of forces assigned to carry out functions of 
        the Secretary of the Navy specified in section 5013 of this 
        title, shall assign to the combatant commands (through the 
        Marine Corps component commander for each such command) all such 
        forces assigned to the Marine Forces Reserve under paragraph (1) 
        in the manner specified by the Secretary of Defense.

``Sec. 10174. Air Force Reserve Command

    ``(a) Establishment of Command.--The Secretary of the Air Force, 
with the advice and assistance of the Chief of Staff of the Air Force, 
shall establish an Air Force Reserve Command. The Air Force Reserve 
Command shall be operated as a separate command of the Air Force.
    ``(b) Commander.--The Chief of Air Force Reserve is the Commander of 
the Air Force Reserve Command. The commander of the Air Force Reserve 
Command reports directly to the Chief of Staff of the Air Force.
    ``(c) Assignment of Forces.--The Secretary of the Air Force--
            ``(1) shall assign to the Air Force Reserve Command all 
        forces of the Air Force Reserve stationed in the continental 
        United States other than forces assigned to the unified 
        combatant command for special operations forces established 
        pursuant to section 167 of this title; and

[[Page 110 STAT. 2691]]

            ``(2) except as otherwise directed by the Secretary of 
        Defense in the case of forces assigned to carry out functions of 
        the Secretary of the Air Force specified in section 8013 of this 
        title, shall assign to the combatant commands all such forces 
        assigned to the Air Force Reserve Command under paragraph (1) in 
        the manner specified by the Secretary of Defense.''.

    (2) The tables of chapters at the beginning of part I of such 
subtitle and at the beginning of such subtitle are each amended by 
inserting after the item relating to chapter 1005 the following new 
item:

``1006. Reserve Component Commands..............................10171''.

    (b) Conforming Repeal.--Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is 
repealed.
    (c) Implementation <<NOTE: 10 USC 10171 note.>> Schedule.--
Implementation of chapter 1006 of title 10, United States Code, as added 
by subsection (a), shall begin not later than 90 days after the date of 
the enactment of this Act and shall be completed not later than one year 
after such date.

SEC. 1212. RESERVE COMPONENT CHIEFS.

    (a) Chief of Army Reserve.--Section 3038 of title 10, United States 
Code, is amended by adding at the end the following new subsections:
    ``(d) Budget.--The Chief of Army Reserve is the official within the 
executive part of the Department of the Army who, subject to the 
authority, direction, and control of the Secretary of the Army and the 
Chief of Staff, is responsible for justification and execution of the 
personnel, operation and maintenance, and construction budgets for the 
Army Reserve. As such, the Chief of Army Reserve is the director and 
functional manager of appropriations made for the Army Reserve in those 
areas.
    ``(e) Full Time Support Program.--The Chief of Army Reserve manages, 
with respect to the Army Reserve, the personnel program of the 
Department of Defense known as the Full Time Support Program.

    ``(f) Annual Report.--(1) The Chief of Army Reserve shall submit to 
the Secretary of Defense, through the Secretary of the Army, an annual 
report on the state of the Army Reserve and the ability of the Army 
Reserve to meet its missions. The report shall be prepared in 
conjunction with the Chief of Staff of the Army and may be submitted in 
classified and unclassified versions.

    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Army Reserve under paragraph (1) to Congress, together with 
such comments on the report as the Secretary considers appropriate. The 
report shall be transmitted at the same time each year that the annual 
report of the Secretary under section 113 of this title is submitted to 
Congress.''.

    (b) Chief of Naval Reserve.--(1) Chapter 513 of such title is 
amended by inserting after section 5142a the following new section:

``Sec. 5143. Office of Naval Reserve: appointment of Chief

    ``(a) Establishment of Office: Chief of Naval Reserve.--There is in 
the executive part of the Department of the Navy, on the staff of the 
Chief of Naval Operations, an Office of the

[[Page 110 STAT. 2692]]

Naval Reserve, which is headed by a Chief of Naval Reserve. The Chief of 
Naval Reserve--
            ``(1) is the principal adviser on Naval Reserve matters to 
        the Chief of Naval Operations; and
            ``(2) is the commander of the Naval Reserve Force.

    ``(b) Appointment.--The <<NOTE: President.>> President, by and with 
the advice and consent of the Senate, shall appoint the Chief of Naval 
Reserve from officers who--
            ``(1) have had at least 10 years of commissioned service;
            ``(2) are in a grade above captain; and
            ``(3) have been recommended by the Secretary of the Navy.

    ``(c) Grade.--(1) The Chief of Naval Reserve holds office for a term 
determined by the Chief of Naval Operations, normally four years, but 
may be removed for cause at any time. He is eligible to succeed himself.
    ``(2) The Chief of Naval Reserve, while so serving, has a grade 
above rear admiral (lower half), without vacating the officer's 
permanent grade.
    ``(d) Budget.--The Chief of Naval Reserve is the official within the 
executive part of the Department of the Navy who, subject to the 
authority, direction, and control of the Secretary of the Navy and the 
Chief of Naval Operations, is responsible for preparation, 
justification, and execution of the personnel, operation and 
maintenance, and construction budgets for the Naval Reserve. As such, 
the Chief of Naval Reserve is the director and functional manager of 
appropriations made for the Naval Reserve in those areas.
    ``(e) Annual Report.--(1) The Chief of Naval Reserve shall submit to 
the Secretary of Defense, through the Secretary of the Navy, an annual 
report on the state of the Naval Reserve and the ability of the Naval 
Reserve to meet its missions. The report shall be prepared in 
conjunction with the Chief of Naval Operations and may be submitted in 
classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Naval Reserve under paragraph (1) to Congress, together 
with such comments on the report as the Secretary considers appropriate. 
The report shall be transmitted at the same time each year that the 
annual report of the Secretary under section 113 of this title is 
submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5142a the 
following new item:

``5143. Office of Naval Reserve: appointment of Chief.''.

    (c) Chief of Marine Forces Reserve.--(1) Chapter 513 of such title 
is amended by inserting after section 5143 (as added by subsection (b)) 
the following new section:

``Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

    ``(a) Establishment of Office; Commander, Marine Forces Reserve.--
There is in the executive part of the Department of the Navy an Office 
of the Marine Forces Reserve, which is headed by the Commander, Marine 
Forces Reserve. The Commander, Marine Forces Reserve, is the principal 
adviser to the Commandant on Marine Forces Reserve matters.

[[Page 110 STAT. 2693]]

    ``(b) Appointment.--The <<NOTE: President.>> President, by and with 
the advice and consent of the Senate, shall appoint the Commander, 
Marine Forces Reserve, from officers of the Marine Corps who--
            ``(1) have had at least 10 years of commissioned service;
            ``(2) are in a grade above colonel; and
            ``(3) have been recommended by the Secretary of the Navy.

    ``(c) Term of Office; Grade.--(1) The Commander, Marine Forces 
Reserve, holds office for a term determined by the Commandant of the 
Marine Corps, normally four years, but may be removed for cause at any 
time. He is eligible to succeed himself.
    ``(2) The Commander, Marine Forces Reserve, while so serving, has a 
grade above brigadier general, without vacating the officer's permanent 
grade.
    ``(d) Annual Report.--(1) The Commander, Marine Forces Reserve, 
shall submit to the Secretary of Defense, through the Secretary of the 
Navy, an annual report on the state of the Marine Corps Reserve and the 
ability of the Marine Corps Reserve to meet its missions. The report 
shall be prepared in conjunction with the Commandant of the Marine Corps 
and may be submitted in classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Commander, Marine Forces Reserve, under paragraph (1) to Congress, 
together with such comments on the report as the Secretary considers 
appropriate. The report shall be transmitted at the same time each year 
that the annual report of the Secretary under section 113 of this title 
is submitted to Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5143 (as added 
by subsection (b)) the following new item:

``5144. Office of Marine Forces Reserve: appointment of Commander.''.

    (d) Chief of Air Force Reserve.--Section 8038 of such title is 
amended by adding at the end the following new subsections:
    ``(d) Budget.--The Chief of Air Force Reserve is the official within 
the executive part of the Department of the Air Force who, subject to 
the authority, direction, and control of the Secretary of the Air Force 
and the Chief of Staff, is responsible for preparation, justification, 
and execution of the personnel, operation and maintenance, and 
construction budgets for the Air Force Reserve. As such, the Chief of 
Air Force Reserve is the director and functional manager of 
appropriations made for the Air Force Reserve in those areas.
    ``(e) Full Time Support Program.--(1) The Chief of Air Force Reserve 
manages, with respect to the Air Force Reserve, the personnel program of 
the Department of Defense known as the Full Time Support Program.

    ``(f) Annual Report.--(1) The Chief of Air Force Reserve shall 
submit to the Secretary of Defense, through the Secretary of the Air 
Force, an annual report on the state of the Air Force Reserve and the 
ability of the Air Force Reserve to meet its missions. The report shall 
be prepared in conjunction with the Chief of Staff of the Air Force and 
may be submitted in classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual report of 
the Chief of Air Force Reserve under paragraph (1) to Congress, together 
with such comments on the report as the Secretary considers appropriate. 
The report shall be transmitted at the same time

[[Page 110 STAT. 2694]]

each year that the annual report of the Secretary under section 113 of 
this title is submitted to Congress.''.
    (e) Conforming Amendment.--Section 641(1)(B) of such title is 
amended by inserting ``5143, 5144,'' after ``3038,''.
SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG 
                          OFFICER AUTHORIZATIONS.

    (a) Report to Congress.--Not later than six months after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing any recommendations of the Secretary 
(together with the rationale of the Secretary for the recommendations) 
concerning the following:
            (1) Revision of the limitations on general and flag officer 
        grade authorizations and distribution in grade prescribed by 
        sections 525, 526, and 12004 of title 10, United States Code.
            (2) Statutory designation of the positions and grades of any 
        additional general and flag officers in the commands and offices 
        created by sections 1211 and 1212.

    (b) Matters To Be Included.--The Secretary shall include in the 
report under subsection (a) the Secretary's views on whether current 
limitations referred to in subsection (a)--
            (1) permit the Secretaries of the military departments, in 
        view of increased requirements for assignment of general and 
        flag officers in positions external to their organic services, 
        to meet adequately both internal and external requirements for 
        general and flag officers;
            (2) adequately recognize the significantly increased role of 
        the reserve components in both service-specific and joint 
        operations; and
            (3) permit the Secretaries of the military departments and 
        the reserve components to assign general and flag officers to 
        active and reserve component positions with grades commensurate 
        with the scope of duties and responsibilities of the position.

    (c) Exemptions From Active-Duty Ceilings.--(1) The Secretary shall 
include in the report under subsection (a) the Secretary's 
recommendations regarding the merits of exempting from any active-duty 
ceiling (established by law or administrative action) the following 
officers:
            (A) Reserve general and flag officers assigned to positions 
        specified in the organizations created by this title.
            (B) Reserve general and flag officers serving on active 
        duty, but who are excluded from the active-duty list.

    (2) If the Secretary determines under paragraph (1) that any Reserve 
general or flag officers should be exempt from active duty limits, the 
Secretary shall include in the report under subsection (a) the 
Secretary's recommendations for--
            (A) the effective management of those Reserve general and 
        flag officers; and
            (B) revision of active duty ceilings so as to prevent an 
        increase in the numbers of active general and flag officers 
        authorizations due solely to the removal of Reserve general and 
        flag officers from under the active duty authorizations.

    (3) If the Secretary determines under paragraph (1) that active and 
reserve general officers on active duty should continue to be managed 
under a common ceiling, the Secretary shall make recommendations for the 
appropriate apportionment of numbers for general and flag officers among 
active and reserve officers.

[[Page 110 STAT. 2695]]

    (d) Reserve Forces Policy Board Participation.--The Secretary of 
Defense shall ensure that the Reserve Forces Policy Board participates 
in the internal Department of Defense process for development of the 
recommendations of the Secretary contained in the report under 
subsection (a). If the Board submits to the Secretary any comments or 
recommendations for inclusion in the report, the Secretary shall 
transmit them to Congress, with the report, in the same form as that in 
which they were submitted to the Secretary.
    (e) GAO Review.--The <<NOTE: Reports.>> Comptroller General of the 
United States shall assess the criteria used by the Secretary of Defense 
to develop recommendations for purposes of the report under this section 
and shall submit to Congress, not later than 30 days after the date on 
which the report of the Secretary under this section is submitted, a 
report setting forth the Comptroller General's conclusions concerning 
the adequacy and completeness of the recommendations made by the 
Secretary in the report.

SEC. 1214. GUARD AND RESERVE TECHNICIANS.

    Section 10216 of title 10, United States Code, as amended by section 
413, is amended--
            (1) by redesignating subsections (a), (b), and (c) as 
        subsections (b), (c), and (d), respectively;
            (2) by inserting after the section heading the following new 
        subsection (a):

    ``(a) In General.--Military technicians are Federal civilian 
employees hired under title 5 and title 32 who are required to maintain 
dual-status as drilling reserve component members as a condition of 
their Federal civilian employment. Such employees shall be authorized 
and accounted for as a separate category of dual-status civilian 
employees, exempt as specified in subsection (b)(3) from any general or 
regulatory requirement for adjustments in Department of Defense civilian 
personnel.''; and
            (3) in paragraph (3) of subsection (b), as redesignated by 
        paragraph (1), by striking out ``in high-priority units and 
        organizations specified in paragraph (1)''.

               Subtitle B--Reserve Component Accessibility

SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL 
                          GUARD AND RESERVE ABILITY TO RESPOND TO 
                          EMERGENCIES.

    (a) Report.--Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report regarding reserve component responsiveness to both domestic 
emergencies and national contingency operations. The report shall set 
forth the measures taken, underway, and projected to be taken to improve 
the timeliness, adequacy, and effectiveness of reserve component 
responses to such emergencies and operations.
    (b) Matters Related to Responsiveness to Domestic Emergencies.--The 
report shall address the following:
            (1) The need to expand the time period set by section 
        12301(b) of title 10, United States Code, which permits the

[[Page 110 STAT. 2696]]

        involuntary recall at any time to active duty of units and 
        individuals for up to 15 days per year.
            (2) The recommendations of the 1995 report of the RAND 
        Corporation entitled ``Assessing the State and Federal Missions 
        of the National Guard'', as follows:
                    (A) That Federal law be clarified and amended to 
                authorize Presidential use of the Federal reserves of 
                all military services for domestic emergencies and 
                disasters without any time constraint.
                    (B) That the Secretary of Defense develop and 
                support establishment of an appropriate national level 
                compact for interstate sharing of resources, including 
                the domestic capabilities of the national guards of the 
                States, during emergencies and disasters.
                    (C) That Federal level contingency stocks be created 
                to support the National Guard in domestic disasters.
                    (D) That Federal funding and regulatory support be 
                provided for Federal-State disaster emergency response 
                planning exercises.

    (c) Matters Related to Presidential Reserve Call-Up Authority.--The 
report under this section shall specifically address matters related to 
the authority of the President to activate for service on active duty 
units and members of reserve components under sections 12301, 12302, and 
12304 of title 10, United States Code, including--
            (1) whether such authority is adequate to meet the full 
        range of reserve component missions for the 21st century, 
        particularly with regard to the time periods for which 
        such units and members may be on active duty under those 
        authorities and the ability to activate both units and 
        individual members; and
            (2) whether the three-tiered set of statutory authorities 
        (under such sections 12301, 12302, and 12304) should be 
        consolidated, modified, or in part eliminated in order to 
        facilitate current and future use of Reserve units and 
        individual reserve component members for a broader range of 
        missions, and, if so, in what manner.

    (d) Matters Related to Release From Active Duty.--The report under 
this section shall include findings and recommendations (based upon a 
review of current policies and procedures) concerning procedures for 
release from active duty of units and members of reserve components who 
have been involuntarily called or ordered to active duty under section 
12301, 12302, or 12304 of title 10, United States Code, with specific 
recommendations concerning the desirability of statutory provisions to--
            (1) establish specific guidelines for when it is appropriate 
        (or inappropriate) to retain on active duty such reserve 
        component units when active component units are available to 
        perform the mission being performed by the reserve component 
        unit;
            (2) minimize the effects of frequent mobilization of the 
        civilian employers, as well as the effects of frequent 
        mobilization on recruiting and retention in the reserve 
        components; and
            (3) address other matters relating to the needs of such 
        members of reserve components, their employers, and (in the case 
        of such members who own businesses) their employees, while such 
        members are on active duty.

[[Page 110 STAT. 2697]]

    (e) Reserve Forces Policy Board Participation.--The Secretary of 
Defense shall ensure that the Reserve Forces Policy Board participates 
in the internal Department of Defense process for development of the 
recommendations of the Secretary contained in the report under 
subsection (a). If the Board submits to the Secretary any comments or 
recommendations for inclusion in the report, the Secretary shall 
transmit them to Congress, with the report, in the same form as that in 
which they were submitted to the Secretary.
    (f) GAO Review.--The <<NOTE: Reports.>> Comptroller General of the 
United States shall assess the criteria used by the Secretary of Defense 
to develop recommendations for purposes of the report under this section 
and shall submit to Congress, not later than 30 days after the date on 
which the report of the Secretary under this section is submitted, a 
report setting forth the Comptroller General's conclusions concerning 
the adequacy and completeness of the recommendations made by the 
Secretary in the report.
SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR 
                          EMPLOYERS OF MEMBERS OF RESERVE 
                          COMPONENTS.

    Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to Congress a report setting forth 
a draft of legislation to provide tax incentives to employers of members 
of reserve components in order to compensate employers for absences of 
those employees due to required training and for absences due to 
performance of active duty.
SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM 
                          FOR ACTIVATED RESERVISTS.

    Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to Congress a report setting forth 
legislative recommendations for changes to chapter 1214 of title 10, 
United States Code. Such recommendations shall in particular provide, in 
the case of a mobilized member who owns a business, income replacement 
for that business and for employees of that member or business who have 
a loss of income during the period of such activation attributable to 
the activation of the member.
SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR 
                          MEMBERS RELEASED FROM RESERVE SERVICE 
                          DURING CONTINGENCY OPERATIONS.

    Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to Congress a report setting forth 
a draft of legislation to establish a small business loan program to 
provide members of reserve components who are ordered to active duty or 
active Federal service (other than for training) during a contingency 
operation (as defined in section 101 of title 10, United States Code) 
low-cost loans to assist those members in retaining or rebuilding 
businesses that were affected by their service on active duty or in 
active Federal service.

[[Page 110 STAT. 2698]]

                 Subtitle C--Reserve Forces Sustainment

SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE 
                          EXPENSES.

    Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to Congress a report setting forth 
a draft of legislation to restore the tax deductibility of 
nonreimbursable expenses incurred by members of reserve components in 
connection with military service.
SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS 
                          PERFORMING ACTIVE DUTY FOR TRAINING.

    Section 404(j)(1) of title 37, United States Code, is amended by 
striking out ``annual training duty'' and inserting in lieu thereof 
``active duty for training''.
SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING 
                          SERVICE ON ACTIVE DUTY FOR TRAINING.

    It is the sense of Congress that the United States should continue 
to pay members of reserve components appropriate quarters allowances 
during periods of service on active duty for training.
SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE 
                          POLICY.

    It is the sense of Congress that military leave policies in effect 
as of the date of the enactment of this Act with respect to members of 
the reserve components should not be changed.
SEC. 1255. RESERVE FORCES POLICY BOARD.

    (a) Commendation.--The Congress commends the Reserve Forces Policy 
Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-
476), for its fine work in the past as an independent source of advice 
to the Secretary of Defense on all matters pertaining to the reserve 
components.
    (b) Sense of Congress.--It is the sense of Congress that the Reserve 
Forces Policy Board and the reserve forces policy committees for the 
individual branches of the Armed
Forces should continue to perform the vital role of providing the 
civilian leadership of the Department of Defense with independent advice 
on matters pertaining to the reserve components.

    (c) Annual Report of Reserve Forces Policy Board.--Section 113(c) of 
title 10, United States Code, is amended--
            (1) by striking out paragraph (3);
            (2) by redesignating paragraphs (1), (2), and (4) as 
        subparagraphs (A), (B), and (C), respectively;
            (3) by inserting ``(1)'' after ``(c)'';
            (4) by inserting ``and'' at the end of subparagraph (B), as 
        redesignated by paragraph (2); and
            (5) by adding at the end the following:

    ``(2) At the same time that the Secretary submits the annual report 
under paragraph (1), the Secretary shall transmit to the President and 
Congress a separate report from the Reserve Forces Policy Board on the 
reserve programs of the Department of Defense and on any other matters 
that the Reserve Forces Policy Board considers appropriate to include in 
the report.''.

[[Page 110 STAT. 2699]]

SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY 
                          SERVICE AND RESERVE SERVICE.

    No later than six months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
providing recommendations for changes in law that the Secretary 
considers necessary, feasible, and affordable to reduce the disparities 
in pay and benefits that occur between active component members of the 
Armed Forces and reserve component members as a result of eligibility 
based on length of time on active duty.
SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND 
                          RESERVE COMPONENTS IN FUTURE-YEARS 
                          DEFENSE PROGRAMS.

    (a) In General.--(1) Chapter 1013 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 10543. National Guard and reserve component equipment procurement 
                        and military construction funding: inclusion in 
                        future-years defense program

    ``The Secretary of Defense shall specify in each future-years 
defense program submitted to Congress under section 221 of this title 
the estimated expenditures and the proposed appropriations, for each 
fiscal year of the period covered by that program, for the procurement 
of equipment and for military construction for each of the reserve 
components of the armed forces.''.

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

``10543. National Guard and reserve component equipment procurement and 
           military construction funding: inclusion in future-years 
           defense program.''.

    (b) Effective <<NOTE: Applicability. 10 USC 10543 note.>> Date.--
Section 10543 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to each future-years defense program 
submitted to Congress after the date of the enactment of this Act.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Subtitle A--Arms Control, Counterpro- liferation Activities, and Related 
                                 Matters

Sec. 1301. Extension of counterproliferation authorities.
Sec. 1302. Limitation on retirement or dismantlement of strategic 
           nuclear delivery systems.
Sec. 1303. Strengthening certain sanctions against nuclear proliferation 
           activities.
Sec. 1304. Authority to pay certain expenses relating to humanitarian 
           and civic 
           assistance for clearance of landmines.
Sec. 1305. Report on military capabilities of People's Republic of 
           China.
Sec. 1306. Presidential report regarding weapons proliferation and 
           policies of the People's Republic of China.
Sec. 1307. United States-People's Republic of China Joint Defense 
           Conversion Commission.
Sec. 1308. Sense of Congress concerning export controls.
Sec. 1309. Counterproliferation Program Review Committee.
Sec. 1310. Sense of Congress concerning assisting other countries to 
           improve 
           security of fissile material.
Sec. 1311. Review by Director of Central Intelligence of National 
           Intelligence Estimate 95-19.

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

Sec. 1321. Establishment of Commission.

[[Page 110 STAT. 2700]]

Sec. 1322. Duties of Commission.
Sec. 1323. Report.
Sec. 1324. Powers.
Sec. 1325. Commission procedures.
Sec. 1326. Personnel matters.
Sec. 1327. Miscellaneous administrative provisions.
Sec. 1328. Funding.
Sec. 1329. Termination of the Commission.

                   Subtitle A--Arms Control, Counter-
                 proliferation Activities, and Related 
                                 Matters

SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

    (a) One-Year Extension of Authority.--Section 1505 of the Weapons of 
Mass Destruction Control Act of 1992 (title XV of Public Law 102-484; 22 
U.S.C. 5859a) is amended--
            (1) in subsection (d)(3), by striking out ``or'' after 
        ``fiscal year 1995,'' and by inserting ``, or $15,000,000 for 
        fiscal year 1997'' before the period at the end; and
            (2) in subsection (f), by striking out ``1996'' and 
        inserting in lieu thereof ``1997''.

    (b) Funding Flexibility.--Subsection (d) of such section is further 
amended by adding at the end the following new paragraph:
    ``(4)(A) In the event of a significant unforeseen development 
related to the activities of the United Nations Special Commission on 
Iraq for which the Secretary of Defense determines that financial 
assistance under this section is required at a level which would result 
in the total amount of assistance provided under this section during the 
then-current fiscal year exceeding the amount specified with respect to 
that year under paragraph (3), the Secretary of Defense may provide such 
assistance notwithstanding the limitation with respect to that fiscal 
year under paragraph (3). Funds for such purpose may be derived from any 
funds available to the Department of Defense for that fiscal year.
    ``(B) Financial assistance may be provided under subparagraph (A) 
only after the Secretary of Defense provides notice in writing to the 
committees of Congress named in subsection (e)(2) of the significant 
unforeseen development and of the Secretary's intent to provide 
assistance in excess of the limitation for that fiscal year under 
paragraph (3). However, if the Secretary determines in any case that 
under the specific circumstances of that case advance notice is not 
possible, such notice shall be provided as soon as possible and not 
later than 15 days after the date on which the assistance is provided. 
Any notice under this subparagraph shall include a description of the 
development, the amount of assistance provided or to be provided, and 
the source of the funds for that assistance.''.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
            NUCLEAR DELIVERY SYSTEMS.

    (a) Funding Limitation.--Funds available to the Department of 
Defense may not be obligated or expended during fiscal year 1997 for 
retiring or dismantling, or for preparing to retire or dismantle, any of 
the following strategic nuclear delivery systems:
            (1) B-52H bomber aircraft.
            (2) Trident ballistic missile submarines.

[[Page 110 STAT. 2701]]

            (3) Minuteman III intercontinental ballistic missiles.
            (4) Peacekeeper intercontinental ballistic missiles.

    (b) Waiver Authority.--If the START II Treaty enters into force 
during fiscal year 1996 or fiscal year 1997, the Secretary of Defense 
may waive the application of the limitation under paragraphs (2), (3), 
and (4) of subsection (a) to Trident ballistic missile submarines, 
Minuteman III intercontinental ballistic missiles, and Peacekeeper 
intercontinental ballistic missiles, respectively, to the extent that 
the Secretary determines necessary in order to implement the treaty.
    (c) Funding Limitation on Early Deactivation.--
(1) <<NOTE: President. Reports.>> If the limitation under paragraphs 
(2), (3), and (4) of subsection (a) ceases to apply by reason of a 
waiver under subsection (b), funds available to the Department of 
Defense may nevertheless not be obligated or expended during fiscal year 
1997 to implement any agreement or understanding to undertake 
substantial early deactivation of a strategic nuclear delivery system 
specified in subsection (b) until 30 days after the date on which the 
President submits to Congress a report concerning such actions.

    (2) For purposes of this subsection, a substantial early 
deactivation is an action during fiscal year 1997 to deactivate a 
substantial number of strategic nuclear delivery systems specified in 
subsection (b) by--
            (A) removing nuclear warheads from those systems; or
            (B) taking other steps to remove those systems from combat 
        status.

    (3) A report under this subsection shall include the following:
            (A) The text of any understanding or agreement between the 
        United States and the Russian Federation concerning substantial 
        early deactivation of strategic nuclear delivery 
        systems under the START II Treaty.
            (B) The plan of the Department of Defense for implementing 
        the agreement.
            (C) An assessment of the Secretary of Defense of the 
        adequacy of the provisions contained in the agreement for 
        monitoring and verifying compliance of Russia with the terms of 
        the agreement.
            (D) A determination by the President as to whether the 
        deactivations to occur under the agreement will be carried out 
        in a symmetrical, reciprocal, or equivalent manner.
            (E) An assessment by the President of the effect of the 
        proposed early deactivation on the stability of the strategic 
        balance and relative strategic nuclear capabilities of the 
        United States and the Russian Federation at various stages 
        during deactivation and upon completion.

    (d) START II Treaty Defined.--For purposes of this section, the term 
``START II Treaty'' means the Treaty Between the United States of 
America and the Russian Federation on Further Reduction and Limitation 
of Strategic Offensive Arms, signed at Moscow on January 3, 1993, 
including the following protocols and memorandum of understanding, all 
such documents being integral parts of and collectively referred to as 
the ``START II Treaty'' (contained in Treaty Document 103-1):
            (1) The Protocol on Procedures Governing Elimination of 
        Heavy ICBMs and on Procedures Governing Conversion of Silo 
        Launchers of Heavy ICBMs Relating to the Treaty Between the 
        United States of America and the Russian Federation on

[[Page 110 STAT. 2702]]

        Further Reduction and Limitation of Strategic Offensive Arms 
        (also known as the ``Elimination and Conversion Protocol'').
            (2) The Protocol on Exhibitions and Inspections of Heavy 
        Bombers Relating to the Treaty Between the United States and the 
        Russian Federation on Further Reduction and Limitation of 
        Strategic Offensive Arms (also known as the ``Exhibitions and 
        Inspections Protocol'').
            (3) The Memorandum of Understanding on Warhead Attribution 
        and Heavy Bomber Data Relating to the Treaty Between the United 
        States of America and the Russian Federation on Further 
        Reduction and Limitation of Strategic Offensive Arms (also known 
        as the ``Memorandum on Attribution'').

    (e) Retention of B-52H Aircraft on Active Status.--(1) The Secretary 
of the Air Force shall maintain in active status (including the 
performance of standard maintenance and upgrades) the current fleet of 
B-52H bomber aircraft.
    (2) <<NOTE: Effective Date.>> For purposes of carrying out upgrades 
of B-52H bomber aircraft during fiscal year 1997, the Secretary shall 
treat the entire current fleet of such aircraft as aircraft expected to 
be maintained in active status during the six-year period beginning on 
October 1, 1996.
SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
                          PROLIFERATION ACTIVITIES.

    (a) Sanctions.--Section 2(b)(4) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635(b)(4)) is amended to read as follows:
            ``(4)(A) <<NOTE: Reports.>> If the Secretary of State 
        determines that--
                    ``(i) any country that has agreed to International 
                Atomic Energy Agency nuclear safeguards materially 
                violates, abrogates, or terminates, after October 26, 
                1977, such safeguards;
                    ``(ii) any country that has entered into an 
                agreement for cooperation concerning the civil use of 
                nuclear energy with the United States materially 
                violates, abrogates, or terminates, after October 26, 
                1977, any guarantee or other undertaking to the United 
                States made in such agreement;
                    ``(iii) any country that is not a nuclear-weapon 
                state detonates, after October 26, 1977, a nuclear 
                explosive device;
                    ``(iv) any country willfully aids or abets, after 
                June 29, 1994, any non-nuclear-weapon state to acquire 
                any such nuclear explosive device or to acquire 
                unsafeguarded special nuclear material; or
                    ``(v) any person knowingly aids or abets, after the 
                date of enactment of the National Defense Authorization 
                Act for Fiscal Year 1997, any non-nuclear-weapon state 
                to acquire any such nuclear explosive device or to 
                acquire unsafeguarded special nuclear material,
        then the Secretary of State shall submit a report to the 
        appropriate committees of the Congress and to the Board of 
        Directors of the Bank stating such determination and identifying 
        each country or person the Secretary determines has so acted.
            ``(B)(i) If the Secretary of State makes a determination 
        under subparagraph (A)(v) with respect to a foreign person, the 
        Congress urges the Secretary to initiate consultations 
        immediately with the government with primary jurisdiction over

[[Page 110 STAT. 2703]]

        that person with respect to the imposition of the prohibition 
        contained in subparagraph (C).
            ``(ii) In order that consultations with that government may 
        be pursued, the Board of Directors of the Bank shall delay 
        imposition of the prohibition contained in subparagraph (C) for 
        up to 90 days if the Secretary of State requests the Board to 
        make such delay. Following these consultations, the prohibition 
        contained in subparagraph (C) shall apply immediately unless the 
        Secretary determines and certifies to the Congress that that 
        government has taken specific and effective actions, including 
        appropriate penalties, to terminate the involvement of the 
        foreign person in the activities described in subparagraph 
        (A)(v). The Board of Directors of the Bank shall delay the 
        imposition of the prohibition contained in subparagraph (C) for 
        up to an additional 90 days if the Secretary requests the Board 
        to make such additional delay and if the Secretary determines 
        and certifies to the Congress that that government is in the 
        process of taking the actions described in the preceding 
        sentence.
            ``(iii) <<NOTE: Reports.>> Not later than 90 days after 
        making a determination under subparagraph (A)(v), the Secretary 
        of State shall submit to the appropriate committees of the 
        Congress a report on the status of consultations with the 
        appropriate government under this subparagraph, and the basis 
        for any determination under clause (ii) that such government has 
        taken specific corrective actions.
            ``(C) The Board of Directors of the Bank shall not give 
        approval to guarantee, insure, or extend credit, or participate 
        in the extension of credit in support of United States exports 
        to any country, or to or by any person, identified in the report 
        described in subparagraph (A).
            ``(D) The prohibition in subparagraph (C) shall not apply to 
        approvals to guarantee, insure, or extend credit, or participate 
        in the extension of credit in support of United States exports 
        to a country with respect to which a determination is made under 
        clause (i), (ii), (iii), or (iv) of subparagraph (A) regarding 
        any specific event described in such clause if the President 
        determines and certifies in writing to the Congress not less 
        than 45 days prior to the date of the first approval following 
        the determination that it is in the national interest for the 
        Bank to give such approvals.
            ``(E) The prohibition in subparagraph (C) shall not apply to 
        approvals to guarantee, insure, or extend credit, or participate 
        in the extension of credit in support of United States exports 
        to or by a person with respect to whom a determination is made 
        under clause (v) of subparagraph (A) regarding any specific 
        event described in such clause if--
                    ``(i) the Secretary of State determines and 
                certifies to the Congress that the appropriate 
                government has taken the corrective actions described in 
                subparagraph (B)(ii); or
                    ``(ii) the President determines and certifies in 
                writing to the Congress not less than 45 days prior to 
                the date of the first approval following the 
                determination that--
                          ``(I) reliable information indicates that--
                                    ``(aa) such person has ceased to aid 
                                or abet any non-nuclear-weapon state to 
                                acquire any

[[Page 110 STAT. 2704]]

                                nuclear explosive device or to acquire 
                                unsafeguarded special nuclear material; 
                                and
                                    ``(bb) steps have been taken to 
                                ensure that the activities described in 
                                item (aa) will not resume; or
                          ``(II) the prohibition would have a serious 
                      adverse effect on vital United States interests.
            ``(F) For purposes of this paragraph:
                    ``(i) The term `country' has the meaning given to 
                `foreign state' in section 1603(a) of title 28, United 
                States Code.
                    ``(ii) The term `knowingly' is used within the 
                meaning of the term `knowing' in section 104(h)(3) of 
                the Foreign Corrupt Practices Act (15 U.S.C. 78dd-
                2(h)(3)).
                    ``(iii) The term `person' means a natural person as 
                well as a corporation, business association, 
                partnership, society, trust, any other nongovernmental 
                entity, organization, or group, and any governmental 
                entity operating as a business enterprise, and any 
                successor of any such entity.
                    ``(iv) The term `nuclear-weapon state' has the 
                meaning given the term in Article IX(3) of the Treaty on 
                the Non-Proliferation of Nuclear Weapons, signed at 
                Washington, London, and Moscow on July 1, 1968.
                    ``(v) The term `non-nuclear-weapon state' has the 
                meaning given the term in section 830(5) of the Nuclear 
                Proliferation Prevention Act of 1994 (Public Law 103-
                236; 108 Stat. 521).
                    ``(vi) The term `nuclear explosive device' has the 
                meaning given the term in section 830(4) of the Nuclear 
                Proliferation Prevention Act of 1994 (Public Law 103-
                236; 108 Stat. 521).
                    ``(vii) The term `unsafeguarded special nuclear 
                material' has the meaning given the term in section 
                830(8) of the Nuclear Proliferation Prevention Act of 
                1994.''.

    (b) Recommendations To Make Nonproliferation Laws More Effective.--
Not <<NOTE: President.>> later than 180 days after the date of the 
enactment of this Act, the President shall submit to the Congress his 
recommendations on ways to make the laws of the United States more 
effective in controlling and preventing the proliferation of weapons of 
mass destruction and missiles. The report shall identify all sources of 
Government funds used for such nonproliferation activities.
SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO 
                          HUMANITARIAN AND CIVIC ASSISTANCE FOR 
                          CLEARANCE OF LANDMINES.

    (a) Authority To Pay Expenses.--Section 401(c) of title 10, United 
States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (4); and
            (2) by inserting after paragraph (1) the following new 
        paragraphs:

    ``(2) Expenses covered by paragraph (1) include the following 
expenses incurred in providing assistance described in subsection 
(e)(5):
            ``(A) Travel, transportation, and subsistence expenses of 
        Department of Defense personnel providing such assistance.
            ``(B) The cost of any equipment, services, or supplies 
        acquired for the purpose of carrying out or supporting the

[[Page 110 STAT. 2705]]

        activities described in subsection (e)(5), including any 
        nonlethal, individual, or small-team landmine clearing equipment 
        or supplies that are to be transferred or otherwise furnished to 
        a foreign country in furtherance of the provision of assistance 
        under this section.

    ``(3) The cost of equipment, services, and supplies provided in any 
fiscal year under paragraph (2)(B) may not exceed $5,000,000.''.
    (b) Coordination With Other Laws.--Section 401(b) of such title is 
amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:

    ``(2) Any authority provided under any other provision of law to 
provide assistance that is described in subsection (e)(5) to a foreign 
country shall be carried out in accordance with, and subject to, the 
limitations prescribed in this section. Any such provision may be 
construed as superseding a provision of this section only if, and to the 
extent that, such provision specifically refers to this section and 
specifically identifies the provision of this section that is to be 
considered superseded or otherwise inapplicable under such provision.''.
SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE'S 
                          REPUBLIC OF CHINA.

    (a) Report.--The Secretary of Defense shall prepare a report, in 
both classified and unclassified form, on the future pattern of military 
modernization of the People's Republic of China. The report shall 
address both the probable course of military-technological development 
in the People's Liberation Army and the 
development of Chinese military strategy and operational concepts.
    (b) Matters To Be Included.--The report shall include analyses and 
forecasts of the following:
            (1) Trends that would lead the People's Republic of China 
        toward advanced intelligence, surveillance, and reconnaissance 
        capabilities, either through a development program or by gaining 
        access to commercial or third-party systems with militarily 
        significant capabilities.
            (2) Efforts by the People's Republic of China to develop 
        highly accurate and low-observable ballistic and cruise 
        missiles, and the investments in infrastructure that would allow 
        for production of such weapons in militarily significant 
        quantities, particularly in numbers sufficient to conduct 
        attacks capable of overwhelming projected defense capabilities 
        in the region.
            (3) Development by the People's Republic of China of 
        enhanced command and control networks, particularly those 
        capable of battle management that would include long-range 
        precision strikes.
            (4) Programs of the People's Republic of China involving 
        unmanned aerial vehicles, particularly those with extended 
        ranges or loitering times.
            (5) Exploitation by the People's Republic of China of the 
        Global Positioning System or other similar systems, including 
        commercial land surveillance satellites, for significant 
        military purposes, including particularly for increasing the 
        accuracy of weapons or the situational awareness of operating 
        forces.

[[Page 110 STAT. 2706]]

            (6) Development by the People's Republic of China of 
        capabilities for denial of sea control, such as advanced sea 
        mines or improved submarine capabilities.
            (7) Continued development by the People's Republic of China 
        of follow-on forces, particularly those capable of rapid air or 
        amphibious assault.

    (c) Submission of Report.--The report shall be submitted to Congress 
not later than February 1, 1997.
SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND 
                          POLICIES OF THE PEOPLE'S REPUBLIC OF 
                          CHINA.

    (a) Findings.--The Congress finds that--
            (1) the People's Republic of China acceded to the Treaty on 
        the Non-Proliferation of Nuclear Weapons (hereafter in this 
        section referred to as the ``NPT'') on March 9, 1992;
            (2) the People's Republic of China is not a member of the 
        Nuclear Suppliers Group and remains the only major nuclear 
        supplier that continues to transfer nuclear technology, 
        equipment, and materials to countries that have not agreed to 
        the application of safeguards of the International Atomic Energy 
        Agency (hereafter in this section referred to as the ``IAEA'') 
        over all of their nuclear materials;
            (3) on June 30, 1995, the United States and 29 other members 
        of the Nuclear Suppliers Group notified the Director General of 
        the IAEA that the Government of each respective country has 
        decided that the controls of that
Group should not be defeated by the transfer of component parts;
            (4) a state-owned entity in the People's Republic of China, 
        the China Nuclear Energy Industry Corporation, has knowingly 
        transferred specially designed ring magnets to an unsafeguarded 
        uranium enrichment facility in the Islamic Republic of Pakistan;
            (5) ring magnets are identified on the Trigger List of the 
        Nuclear Suppliers Group as a component of magnetic suspension 
        bearings which are to be exported only to countries that have 
        safeguards of the IAEA over all of their nuclear materials;
            (6) these ring magnets could contribute significantly to the 
        ability of the Islamic Republic of Pakistan to produce 
        additional unsafeguarded enriched uranium, a nuclear explosive 
        material;
            (7) the Government of the People's Republic of China has 
        transferred nuclear equipment and technology to the Islamic 
        Republic of Iran, despite repeated claims by the Government of 
        the United States that the Islamic Republic of Iran is engaged 
        in clandestine efforts to acquire a nuclear explosive device;
            (8) representatives of the Government of the People's 
        Republic of China have repeatedly assured the Government of the 
        United States that the People's Republic of China would abide by 
        the guidelines of the Missile Technology Control Regime 
        (hereafter in this section referred to as the ``MTCR'');
            (9) the Government of China has transferred M-11 missiles to 
        the Islamic Republic of Pakistan; and
            (10) the M-11 missile conforms to the definition of a 
        nuclear-capable missile under the MTCR.

    (b) Sense of the Congress.--It is the sense of the 
Congress that--

[[Page 110 STAT. 2707]]

            (1) the assistance that the People's Republic of China has 
        provided to the Islamic Republic of Iran and to the Islamic 
        Republic of Pakistan could contribute to the ability of such 
        countries to manufacture nuclear weapons;
            (2) the recent transfer by the People's Republic of China of 
        ring magnets to an unsafeguarded uranium enrichment facility in 
        the Islamic Republic of Pakistan conflicts with China's 
        obligations under Articles I and III of the NPT, as well as the 
        official nonproliferation policies and assurances by the 
        People's Republic of China and the Islamic Republic of Pakistan 
        with respect to the nonproliferation of nuclear weapons and 
        nuclear-capable missiles;
            (3) the transfer of M-11 missiles from the People's Republic 
        of China to the Islamic Republic of Pakistan is inconsistent 
        with longstanding United States Government interpretations of 
        assurances from the Government of the People's Republic of China 
        with respect to that country's intent to abide by the guidelines 
        of the MTCR;
            (4) violations by the People's Republic of China of the 
        standards and objectives of the MTCR and global nuclear 
        nonproliferation regimes have jeopardized the credibility of the 
        MTCR and such regimes;
            (5) the MTCR and global nuclear nonproliferation regimes 
        require collective international action to impose costs against 
        and to withhold benefits from any country, including the 
        People's Republic of China, that engages in activities that are 
        contrary to the objectives of those regimes;
            (6) the President should explore with the governments of 
        other countries new opportunities for collective action in 
        response to activities of any country, including the People's 
        Republic of China, that aid or abet the global proliferation of 
        weapons of mass destruction or their means of delivery; and
            (7) the President should communicate to the Government of 
        the People's Republic of China the sense of the Congress that 
        the stability and growth of future relations between the people, 
        the economies, and the Governments of the United States and the 
        People's Republic of China will
significantly depend upon substantive evidence of cooperation by the 
Government of the People's Republic of China in efforts to halt the 
global proliferation of weapons of mass destruction and their means of 
delivery.

    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the President shall submit to the Congress a report, in 
both classified and unclassified form, concerning the transfer from the 
People's Republic of China to the Islamic Republic of Pakistan of 
technology, equipment, or materials important to the production of 
nuclear weapons and their means of delivery. The President shall include 
in the report the following:
            (1) The specific justification of the Secretary of State for 
        determining that there was not a sufficient basis for imposing 
        sanctions under section 2(b)(4) of the Export-Import Bank Act of 
        1945, as amended by section 825 of the Nuclear Proliferation 
        Prevention Act of 1994, by reason of the transfer of ring 
        magnets and other technology, equipment, or materials from the 
        People's Republic of China to the Islamic Republic of Pakistan.

[[Page 110 STAT. 2708]]

            (2) What commitment the United States Government is seeking 
        from the People's Republic of China to ensure that the People's 
        Republic of China establishes a fully effective export control 
        system that will prevent transfers (such as the Pakistan sale) 
        from taking place in the future.
            (3) A description of the pledges, assurances, and other 
        commitments made by representatives of the Governments of the 
        People's Republic of China and the Islamic Republic of Pakistan 
        to the Government of the United States since January 1, 1991, 
        with respect to the nonproliferation of nuclear weapons or 
        nuclear-capable missiles, and an assessment of the record of 
        compliance with such undertakings.
            (4) Whether, in light of the recent assurances provided by 
        the People's Republic of China, the President intends to make 
        the certification and submit the report required by section 
        902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal 
        Years 1990 and 1991 (22 U.S.C. 2151 note), and make the 
        certification and submit the report required by Public Law 99-
        183, relating to the approval and implementation of the 
        agreement for nuclear cooperation between the United States and 
        the People's Republic of China, and, if not, why not.
            (5) Whether the Secretary of State considers the recent 
        assurances and clarifications provided by the People's Republic 
        of China to have provided sufficient information to allow the 
        United States to determine that the People's Republic of China 
        is not in violation of paragraph (2) of section 129 of the 
        Atomic Energy Act of 1954, as required by Public Law 99-183.
            (6) If the President is unable or unwilling to make the 
        certifications and reports referred to in paragraph (4), a 
        description of what the President considers to be the 
        significance of the clarifications and assurances provided by 
        the People's Republic of China in the course of the recent 
        discussions regarding the transfer by the People's Republic of 
        China of nuclear-weapon-related equipment to the Islamic 
        Republic of Pakistan.
            (7) A description of the laws, regulations, and procedures 
        currently used by the People's Republic of China to regulate 
        exports of nuclear technology, equipment, or materials, 
        including dual-use goods, and an assessment of the effectiveness 
        of such arrangements.
            (8) A description of the current policies and practices of 
        other countries in response to the transfer of nuclear and 
        missile technology by the People's Republic of China to the 
        Islamic Republic of Pakistan and the Islamic Republic of Iran.
SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE 
                          CONVERSION COMMISSION.

    None of the funds appropriated or otherwise available for the 
Department of Defense for fiscal year 1997 or any prior fiscal year may 
be obligated or expended for any activity associated with the United 
States-People's Republic of China Joint
Defense Conversion Commission until 15 days after the date on which the 
first semiannual report required by section 1343 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
487) is received by Congress.

SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

    (a) Findings.--The Congress makes the following findings:

[[Page 110 STAT. 2709]]

            (1) Export controls are a part of a comprehensive response 
        to national security threats. The export of a United States 
        commodity or technology should be restricted in cases in which 
        the export of the commodity or technology would increase the 
        threat to the national security of the United States or would be 
        contrary to the nonproliferation goals or foreign policy 
        interests of the United States.
            (2) The export of certain commodities and technology may 
        adversely affect the national security and foreign policy of the 
        United States by making a significant contribution to the 
        military potential of countries or by enhancing the capability 
        of countries to design, develop, test, produce, stockpile, or 
        use weapons of mass destruction and missile delivery systems, 
        and other significant military capabilities. Therefore, the 
        administration of export controls should emphasize the control 
        of these exports.
            (3) The acquisition of sensitive commodities and 
        technologies by those countries and end users whose actions or 
        policies run counter to United States national security or 
        foreign policy interests may enhance the military capabilities 
        of those countries, particularly their ability to design, 
        develop, test, produce, stockpile, use, and deliver nuclear, 
        chemical, and biological weapons and missile delivery systems, 
        and other significant military capabilities. This enhancement 
        threatens the security of the United States and its allies. The 
        availability to countries and end users of items that contribute 
        to military capabilities or the proliferation of weapons of mass 
        destruction is a fundamental concern of the United States and 
        should be eliminated through deterrence, negotiations, and other 
        appropriate means whenever possible.
            (4) The national security of the United States depends not 
        only on wise foreign policies and a strong defense, but also a 
        vibrant national economy. To be truly effective, export controls 
        should be applied uniformly by all suppliers.
            (5) On November 8, 1995, the President continued the 
        national emergency declared in Executive Order No. 12938 of 
        November 14, 1994, ``with respect to the unusual and 
        extraordinary threat to the national security, foreign policy, 
        and 
        economy of the United States posed by the proliferation of 
        nuclear, biological, and chemical weapons and the means of 
        delivering such weapons''.
            (6) A successor regime to COCOM (the Coordinating Committee 
        for Multilateral Export Controls) has not been established. 
        Currently, each nation is determining independently which dual-
        use military items, if any, will be controlled for export.
            (7) The United States should play a leading role in 
        promoting transparency and responsibility with regard to the 
        transfers of sensitive dual-use goods and technologies.

    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) establishing an international export control regime, 
        empowered to control exports of dual-use technology, is 
        critically important and should be a top priority for the United 
        States; and
            (2) the United States should strongly encourage its allies 
        and other friendly countries to--

[[Page 110 STAT. 2710]]

                    (A) adopt export controls that are the same or 
                similar to the export controls imposed by the United 
                States on items on the Commerce Control List;
                    (B) strengthen enforcement of their export 
                controls; and
                    (C) explore the use of unilateral export controls 
                where the possibility exists that an export could 
                contribute to the enhancement of military capabilities 
                or
proliferation described in paragraphs (3) and (5) of subsection (a).

SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

    (a) Composition of the Committee.--Subsection (a) of section 1605 of 
the National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 
2751 note) is amended by adding at the end the following new paragraph:
    ``(5) The Assistant to the Secretary of Defense for Nuclear and 
Chemical and Biological Defense Programs shall serve as executive 
secretary to the committee.''.
    (b) Additional Purpose of the Committee.--Subsection (b)(1)(A) of 
such section is amended by inserting ``and efforts, including efforts to 
stem the proliferation of weapons of mass destruction and to negate 
paramilitary and terrorist threats involving weapons of mass 
destruction'' after ``counterproliferation policy''.
    (c) Four-Year Extension of the Committee.--Subsection (f) of such 
section is amended by striking out ``September 30, 1996'' and inserting 
in lieu thereof ``September 30, 2000''.
    (d) Reports on Counterproliferation Activities and Programs.--
Section 1503 of the National Defense Authorization Act for Fiscal Year 
1995 (22 U.S.C. 2751 note) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``Report Required.--(1) Not 
                later than May 1, 1995 and May 1, 1996, the Secretary'' 
                and inserting in lieu thereof ``Annual Report 
                Required.--Not later than May 1 of each year, the 
                Secretary''; and
                    (B) by striking out paragraph (2); and
            (2) by adding at the end the following new subsections:

    ``(d) Review Committee Charter Defined.--For purposes of this 
section, the term `Review Committee charter' means section 1605 of the 
National Defense Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 
note).
    ``(e) Termination of Requirement.--The final report required under 
subsection (a) is the report for the year following the year in which 
the Counterproliferation Program Review Committee established under the 
Review Committee Charter ceases to exist.''.
SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER COUNTRIES 
                          TO IMPROVE SECURITY OF FISSILE 
                          MATERIAL.

    (a) Findings.--Congress finds the following:
            (1) With the end of the Cold War, the world is faced with 
        the need to manage the dismantling of vast numbers of nuclear 
        weapons and the disposition of the fissile materials that they 
        contain.
            (2) If recently agreed reductions in nuclear weapons are 
        fully implemented, tens of thousands of nuclear weapons, 
        containing a hundred tons or more of plutonium and many hundreds 
        of tons of highly enriched uranium, will no longer be needed for 
        military purposes.

[[Page 110 STAT. 2711]]

            (3) Plutonium and highly enriched uranium are the essential 
        ingredients of nuclear weapons.
            (4) Limits on access to plutonium and highly enriched 
        uranium are the primary technical barrier to acquiring nuclear 
        weapons capability in the world today.
            (5) Several kilograms of plutonium, or several times that 
        amount of highly enriched uranium, are sufficient to make a 
        nuclear weapon.
            (6) Plutonium and highly enriched uranium will continue to 
        pose a potential threat for as long as they exist.
            (7) Action is required to secure and account for plutonium 
        and highly enriched uranium.
            (8) It is in the national interest of the United States to--
                    (A) minimize the risk that fissile materials could 
                be obtained by unauthorized parties;
                    (B) minimize the risk that fissile materials could 
                be reintroduced into the arsenals from which they came, 
                halting or reversing the arms reduction process; and
                    (C) strengthen the national and international 
                control mechanisms and incentives designed to ensure 
                continued arms reductions and prevent the spread of 
                nuclear 
                weapons.

    (b) Sense of Congress.--In light of the findings contained in 
subsection (a), it is the sense of Congress that the United States has a 
national security interest in assisting other countries to improve the 
security of their stocks of fissile material.
SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF NATIONAL 
                          INTELLIGENCE ESTIMATE 95-19.

    (a) Review.--The Director of Central Intelligence shall conduct a 
review of the underlying assumptions and conclusions of the National 
Intelligence Estimate designated as NIE 95-19 and 
entitled ``Emerging Missile Threats to North America During the Next 15 
Years'', released by the Director in November 1995.
    (b) Methodology for Review.--The Director shall carry out the review 
under subsection (a) through a panel of independent, nongovernmental 
individuals with appropriate expertise and experience. Such a panel 
shall be convened by the Director not later than 45 days after the date 
of the enactment of this Act.
    (c) Report.--The Director shall submit the findings resulting from 
the review under subsection (a), together with any comments of the 
Director on the review and the findings, to Congress not later than 
three months after the appointment of the Commission under section 1321.

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

SEC. 1321. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission To Assess the Ballistic Missile Threat to the 
United States'' (hereafter in this subtitle referred to as the 
``Commission'').
    (b) Composition.--The Commission shall be composed of nine members 
appointed by the Director of Central Intelligence. In select

[[Page 110 STAT. 2712]]

ing individuals for appointment to the Commission, the Director should 
consult with--
            (1) the Speaker of the House of Representatives concerning 
        the appointment of three of the members of the Commission;
            (2) the majority leader of the Senate concerning the 
        appointment of three of the members of the Commission; and
            (3) the minority leader of the House of Representatives and 
        the minority leader of the Senate concerning the appointment of 
        three of the members of the Commission.

    (c) Qualifications.--Members of the Commission shall be appointed 
from among private United States citizens with knowledge and expertise 
in the political and military aspects of proliferation of ballistic 
missiles and the ballistic missile threat to the United States.
    (d) Chairman.--The Speaker of the House of Representatives, after 
consultation with the majority leader of the Senate and the minority 
leaders of the House of Representatives and the Senate, shall designate 
one of the members of the Commission to serve as chairman of the 
Commission.
    (e) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall be 
filled in the same manner as the original appointment.
    (f) Security Clearances.--All members of the Commission shall hold 
appropriate security clearances.
    (g) Initial Organization Requirements.--(1) All appointments to the 
Commission shall be made not later than 45 days after the date of the 
enactment of this Act.
    (2) The Commission shall convene its first meeting not later than 30 
days after the date as of which all members of the Commission have been 
appointed, but not earlier than October 15, 1996.

SEC. 1322. DUTIES OF COMMISSION.

    (a) Review of Ballistic Missile Threat.--The Commission shall assess 
the nature and magnitude of the existing and emerging ballistic missile 
threat to the United States.
    (b) Cooperation From Government Officials.--In carrying out its 
duties, the Commission should receive the full and timely cooperation of 
the Secretary of Defense, the Director of Central Intelligence, and any 
other United States Government official responsible for providing the 
Commission with analyses, briefings, and other information necessary for 
the fulfillment of its respon-
sibilities.

SEC. 1323. REPORT.

    The Commission shall, not later than six months after the date of 
its first meeting, submit to the Congress a report on its findings and 
conclusions.

SEC. 1324. POWERS.

    (a) Hearings.--The Commission or, at its direction, any panel or 
member of the Commission, may, for the purpose of carrying out the 
provisions of this subtitle, hold hearings, sit and act at times and 
places, take testimony, receive evidence, and administer oaths to the 
extent that the Commission or any panel or member considers advisable.
    (b) Information.--The Commission may secure directly from the 
Department of Defense, the Central Intelligence Agency, and

[[Page 110 STAT. 2713]]

any other Federal department or agency information that the Commission 
considers necessary to enable the Commission to carry out its 
responsibilities under this subtitle.

SEC. 1325. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (b) Quorum.--(1) Five members of the Commission shall constitute a 
quorum other than for the purpose of holding hearings.
    (2) The Commission shall act by resolution agreed to by a majority 
of the members of the Commission.
    (c) Commission.--The Commission may establish panels composed of 
less than full membership of the Commission for the purpose of carrying 
out the Commission's duties. The actions of each such panel shall be 
subject to the review and control of the Commission. Any findings and 
determinations made by such a panel shall not be considered the findings 
and determinations of the Commission unless approved by the Commission.
    (d) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take under this subtitle.

SEC. 1326. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve without 
pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 of 
title 5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Commission.
    (c) Staff.--(1) The chairman of the Commission may, without regard 
to the provisions of title 5, United States Code, governing appointments 
in the competitive service, appoint a staff director and such additional 
personnel as may be necessary to enable the Commission to perform its 
duties. The appointment of a staff director shall be subject to the 
approval of the Commission.
    (2) The chairman of the Commission may fix the pay of the staff 
director and other personnel without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of title 5, United States Code, 
relating to classification of positions and General Schedule pay rates, 
except that the rate of pay fixed under this paragraph for the staff 
director may not exceed the rate payable for level V of the Executive 
Schedule under section 5316 of such title and the rate of pay for other 
personnel may not exceed the maximum rate payable for grade GS-15 of the 
General Schedule.
    (d) Detail of Government Employees.--Upon request of the chairman of 
the Commission, the head of any Federal department or agency may detail, 
on a nonreimbursable basis, any personnel of that department or agency 
to the Commission to assist it in carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay payable for level V of the Executive Schedule under 
section 5316 of such title.

[[Page 110 STAT. 2714]]

SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use the United 
States mails and obtain printing and binding services in the same manner 
and under the same conditions as other departments and agencies of the 
Federal Government.
    (b) Miscellaneous Administrative and Support Services.--The Director 
of Central Intelligence shall furnish the Commission, on a reimbursable 
basis, any administrative and support services requested by the 
Commission.

SEC. 1328. FUNDING.

    Funds for activities of the Commission shall be provided from 
amounts appropriated for the Department of Defense for operation and 
maintenance for Defense-wide activities for fiscal year 1997. Upon 
receipt of a written certification from the Chairman of the Commission 
specifying the funds required for the activities of the Commission, the 
Secretary of Defense shall promptly disburse to the Commission, from 
such amounts, the funds required by the Commission as stated in such 
certification.

SEC. 1329. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of the 
submission of its report under section 1323.

 TITLE XIV--DEFENSE <<NOTE: Defense Against Weapons of Mass Destruction 
Act of 1996.>> AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.
Sec. 1402. Findings.
Sec. 1403. Definitions.

                    Subtitle A--Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass 
           destruction.
Sec. 1412. Emergency response assistance program.
Sec. 1413. Nuclear, chemical, and biological emergency response.
Sec. 1414. Chemical-biological emergency response team.
Sec. 1415. Testing of preparedness for emergencies involving nuclear, 
           radiological, chemical, and biological weapons.
Sec. 1416. Military assistance to civilian law enforcement officials in 
           emergency 
           situations involving biological or chemical weapons.
Sec. 1417. Rapid response information system.

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

Sec. 1421. Procurement of detection equipment United States border 
           security.
Sec. 1422. Extension of coverage of International Emergency Economic 
           Powers Act.
Sec. 1423. Sense of Congress concerning criminal penalties.
Sec. 1424. International border security.

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

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative 
           Threat 
           Reduction programs on elimination or transportation of 
           nuclear 
           weapons.
Sec. 1432. Elimination of plutonium production.

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

Sec. 1441. National Coordinator on Nonproliferation.
Sec. 1442. National Security Council Committee on Nonproliferation.
Sec. 1443. Comprehensive preparedness program.
Sec. 1444. Termination.

[[Page 110 STAT. 2715]]

                        Subtitle E--Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.
Sec. 1452. Transfers of allocations among Cooperative Threat Reduction 
           programs.
Sec. 1453. Sense of Congress concerning assistance to states of former 
           Soviet Union.
Sec. 1454. Purchase of low-enriched uranium derived from Russian highly 
           enriched uranium.
Sec. 1455. Sense of Congress concerning purchase, packaging, and 
           transportation of fissile materials at risk of theft.

SEC. 1401. <<NOTE: 50 USC 2301 note.>> SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of Mass 
Destruction Act of 1996''.

SEC. 1402. <<NOTE: 50 USC 2301 note.>> FINDINGS.

    Congress makes the following findings:
            (1) Weapons of mass destruction and related materials and 
        technologies are increasingly available from worldwide sources. 
        Technical information relating to such weapons is readily 
        available on the Internet, and raw materials for chemical, 
        biological, and radiological weapons are widely available for 
        legitimate commercial purposes.
            (2) The former Soviet Union produced and maintained a vast 
        array of nuclear, biological, and chemical weapons of mass 
        destruction.
            (3) Many of the states of the former Soviet Union retain the 
        facilities, materials, and technologies capable of producing 
        additional quantities of weapons of mass destruction.
            (4) The disintegration of the former Soviet Union was 
        accompanied by disruptions of command and control systems, 
        deficiencies in accountability for weapons, weapons-related 
        materials and technologies, economic hardships, and significant 
        gaps in border control among the states of the former Soviet 
        Union. The problems of organized crime and corruption in the 
        states of the former Soviet Union increase the potential for 
        proliferation of nuclear, radiological, biological, and chemical 
        weapons and related materials.
            (5) The conditions described in paragraph (4) have 
        substantially increased the ability of potentially hostile 
        nations, terrorist groups, and individuals to acquire weapons of 
        mass destruction and related materials and technologies from 
        within the states of the former Soviet Union and from unemployed 
        scientists who worked on those programs.
            (6) As a result of such conditions, the capability of 
        potentially hostile nations and terrorist groups to acquire 
        nuclear, radiological, biological, and chemical weapons is 
        greater than at any time in history.
            (7) The President has identified North Korea, Iraq, Iran, 
        and Libya as hostile states which already possess some weapons 
        of mass destruction and are developing others.
            (8) The acquisition or the development and use of weapons of 
        mass destruction is well within the capability of many extremist 
        and terrorist movements, acting independently or as proxies for 
        foreign states.
            (9) Foreign states can transfer weapons to or otherwise aid 
        extremist and terrorist movements indirectly and with plausible 
        deniability.

[[Page 110 STAT. 2716]]

            (10) Terrorist groups have already conducted chemical 
        attacks against civilian targets in the United States and Japan, 
        and a radiological attack in Russia.
            (11) The potential for the national security of the United 
        States to be threatened by nuclear, radiological, chemical, or 
        biological terrorism must be taken seriously.
            (12) There is a significant and growing threat of attack by 
        weapons of mass destruction on targets that are not military 
        targets in the usual sense of the term.
            (13) Concomitantly, the threat posed to the citizens of the 
        United States by nuclear, radiological, biological, and chemical 
        weapons delivered by unconventional means is significant and 
        growing.
            (14) Mass terror may result from terrorist incidents 
        involving nuclear, radiological, biological, or chemical 
        materials.
            (15) Facilities required for production of radiological, 
        biological, and chemical weapons are much smaller and harder to 
        detect than nuclear weapons facilities, and biological and 
        chemical weapons can be deployed by alternative delivery means 
        other than long-range ballistic missiles.
            (16) Covert or unconventional means of delivery of nuclear, 
        radiological, biological, and chemical weapons include cargo 
        ships, passenger aircraft, commercial and private vehicles and 
        vessels, and commercial cargo shipments routed through 
        multiple destinations.
            (17) Traditional arms control efforts assume large state 
        efforts with detectable manufacturing programs and weapons 
        production programs, but are ineffective in monitoring and 
        controlling smaller, though potentially more dangerous, 
        unconventional proliferation efforts.
            (18) Conventional counterproliferation efforts would do 
        little to detect or prevent the rapid development of a 
        capability to suddenly manufacture several hundred chemical or 
        biological weapons with nothing but commercial supplies and 
        equipment.
            (19) The United States lacks adequate planning and 
        countermeasures to address the threat of nuclear, radiological, 
        biological, and chemical terrorism.
            (20) The Department of Energy has established a Nuclear 
        Emergency Response Team which is available in case of nuclear or 
        radiological emergencies, but no comparable units exist to deal 
        with emergencies involving biological or chemical weapons or 
        related materials.
            (21) State and local emergency response personnel are not 
        adequately prepared or trained for incidents involving nuclear, 
        radiological, biological, or chemical materials.
            (22) Exercises of the Federal, State, and local response to 
        nuclear, radiological, biological, or chemical terrorism have 
        revealed serious deficiencies in preparedness and severe 
        problems of coordination.
            (23) The development of, and allocation of responsibilities 
        for, effective countermeasures to nuclear, radiological, 
        biological, or chemical terrorism in the United States requires 
        well-coordinated participation of many Federal agencies, and 
        careful planning by the Federal Government and State and local 
        governments.
            (24) Training and exercises can significantly improve the 
        preparedness of State and local emergency response personnel

[[Page 110 STAT. 2717]]

        for emergencies involving nuclear, radiological, biological, or 
        chemical weapons or related materials.
            (25) Sharing of the expertise and capabilities of the 
        Department of Defense, which traditionally has provided 
        assistance to Federal, State, and local officials in 
        neutralizing, dis-
        mantling, and disposing of explosive ordnance, as well as 
        radiological, biological, and chemical materials, can be a vital 

        contribution to the development and deployment of 
        countermeasures against nuclear, biological, and chemical 
        weapons of mass destruction.
            (26) The United States lacks effective policy coordination 
        regarding the threat posed by the proliferation of weapons of 
        mass destruction.

SEC. 1403. <<NOTE: 50 USC 2302.>> DEFINITIONS.

    In this title:
            (1) The term ``weapon of mass destruction'' means any weapon 
        or device that is intended, or has the capability, to cause 
        death or serious bodily injury to a significant number of people 
        through the release, dissemination, or impact of--
                    (A) toxic or poisonous chemicals or their 
                precursors;
                    (B) a disease organism; or
                    (C) radiation or radioactivity.
            (2) The term ``independent states of the former Soviet 
        Union'' has the meaning given that term in section 3 of the 
        FREEDOM Support Act (22 U.S.C. 5801).
            (3) The term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more in the isotope U-235.

                    Subtitle A--Domestic Preparedness

SEC. 1411. RESPONSE <<NOTE: President. 50 USC 2311.>> TO THREATS 
                          OF TERRORIST USE OF WEAPONS OF MASS 
                          DESTRUCTION.

    (a) Enhanced Response Capability.--In light of the potential for 
terrorist use of weapons of mass destruction against the United States, 
the President shall take immediate action--
            (1) to enhance the capability of the Federal Government to 
        prevent and respond to terrorist incidents involving weapons of 
        mass destruction; and
            (2) to provide enhanced support to improve the capabilities 
        of State and local emergency response agencies to prevent and 
        respond to such incidents at both the national and the local 
        level.

    (b) Report Required.--Not later than January 31, 1997, the President 
shall transmit to Congress a report containing--
            (1) an assessment of the capabilities of the Federal 
        Government to prevent and respond to terrorist incidents 
        involving weapons of mass destruction and to support State and 
        local prevention and response efforts;
            (2) requirements for improvements in those cap-
        abilities; and
            (3) the measures that should be taken to achieve such 
        improvements, including additional resources and legislative 
        authorities that would be required.

[[Page 110 STAT. 2718]]

SEC. 1412. <<NOTE: 50 USC 2312.>> EMERGENCY RESPONSE ASSISTANCE PROGRAM.

    (a) Program Required.--(1) The Secretary of Defense shall carry out 
a program to provide civilian personnel of Federal, State, and local 
agencies with training and expert advice regarding emergency responses 
to a use or threatened use of a weapon of mass destruction or related 
materials.
    (2) The President may designate the head of an agency other than the 
Department of Defense to assume the responsibility for carrying out the 
program on or after October 1, 1999, and relieve the Secretary of 
Defense of that responsibility upon the assumption of the responsibility 
by the designated official.
    (3) In this section, the official responsible for carrying out the 
program is referred to as the ``lead official''.
    (b) Coordination.--In carrying out the program, the lead official 
shall coordinate with each of the following officials who is not serving 
as the lead official:
            (1) The Director of the Federal Emergency Management Agency.
            (2) The Secretary of Energy.
            (3) The Secretary of Defense.
            (4) The heads of any other Federal, State, and local 
        government agencies that have an expertise or responsibilities 
        relevant to emergency responses described in subsection (a)(1).

    (c) Eligible Participants.--The civilian personnel eligible to 
receive assistance under the program are civilian personnel of Federal, 
State, and local agencies who have emergency preparedness 
responsibilities.
    (d) Involvement of Other Federal Agencies.--(1) The lead official 
may use personnel and capabilities of Federal agencies outside the 
agency of the lead official to provide training and expert advice under 
the program.
    (2)(A) Personnel used under paragraph (1) shall be personnel who 
have special skills relevant to the particular assistance that the 
personnel are to provide.
    (B) Capabilities used under paragraph (1) shall be capabilities that 
are especially relevant to the particular assistance for which the 
capabilities are used.
    (3) If the lead official is not the Secretary of Defense, and 
requests assistance from the Department of Defense that, in the judgment 
of the Secretary of Defense would affect military readiness or adversely 
affect national security, the Secretary of Defense may appeal the 
request for Department of Defense assistance by the lead official to the 
President.
    (e) Available Assistance.--Assistance available under this program 
shall include the following:
            (1) Training in the use, operation, and maintenance of 
        equipment for--
                    (A) detecting a chemical or biological agent or 
                nuclear radiation;
                    (B) monitoring the presence of such an agent or 
                radiation;
                    (C) protecting emergency personnel and the 
                public; and
                    (D) decontamination.
            (2) Establishment of a designated telephonic link (commonly 
        referred to as a ``hot line'') to a designated source of 
        relevant data and expert advice for the use of State or local

[[Page 110 STAT. 2719]]

        officials responding to emergencies involving a weapon of mass 
        destruction or related materials.
            (3) Use of the National Guard and other reserve components 
        for purposes authorized under this section that are specified by 
        the lead official (with the concurrence of the Secretary of 
        Defense if the Secretary is not the lead official).
            (4) Loan of appropriate equipment.

    (f) Limitations on Department of Defense Assistance to Law 
Enforcement Agencies.--Assistance provided by the Department of Defense 
to law enforcement agencies under this section shall be provided under 
the authority of, and subject to the restrictions provided in, chapter 
18 of title 10, United States Code.
    (g) Administration of Department of Defense Assistance.--The 
Secretary of Defense shall designate an official within the Department 
of Defense to serve as the executive agent of the Secretary for the 
coordination of the provision of Department of Defense assistance under 
this section.
    (h) Funding.--(1) Of the total amount authorized to be appropriated 
under section 301, $35,000,000 is available for the program required 
under this section.
    (2) Of the amount available for the program pursuant to paragraph 
(1), $10,500,000 is available for use by the Secretary of Defense to 
assist the Secretary of Health and Human Services in the establishment 
of metropolitan emergency medical response teams (commonly referred to 
as ``Metropolitan Medical Strike Force Teams'') to provide medical 
services that are necessary or potentially necessary by reason of a use 
or threatened use of a weapon of mass destruction.
    (3) The amount available for the program under paragraph (1) is in 
addition to any other amounts authorized to be appropriated for the 
program under section 301.
SEC. 1413. NUCLEAR, <<NOTE: 50 USC 2313.>> CHEMICAL, AND 
                          BIOLOGICAL EMERGENCY RESPONSE.

    (a) Department of Defense.--The Secretary of Defense shall designate 
an official within the Department of Defense as the executive agent 
for--
            (1) the coordination of Department of Defense assistance to 
        Federal, State, and local officials in responding to threats 
        involving biological or chemical weapons or related materials or 
        technologies, including assistance in identifying, neutralizing, 
        dismantling, and disposing of biological and chemical 
        weapons and related materials and technologies; and
            (2) the coordination of Department of Defense assistance to 
        the Department of Energy in carrying out that department's 
        responsibilities under subsection (b).

    (b) Department of Energy.--The Secretary of Energy shall designate 
an official within the Department of Energy as the executive agent for--
            (1) the coordination of Department of Energy assistance to 
        Federal, State, and local officials in responding to threats 
        involving nuclear, chemical, and biological weapons or related 
        materials or technologies, including assistance in identifying, 
        neutralizing, dismantling, and disposing of nuclear weapons and 
        related materials and technologies; and

[[Page 110 STAT. 2720]]

            (2) the coordination of Department of Energy assistance to 
        the Department of Defense in carrying out that department's 
        responsibilities under subsection (a).

    (c) Funding.--Of the total amount authorized to be appropriated 
under section 301, $15,000,000 is available for providing assistance 
described in subsection (a).
SEC. 1414. CHEMICAL-BIOLOGICAL <<NOTE: 50 USC 2314.>> EMERGENCY 
                          RESPONSE TEAM.

    (a) Department of Defense Rapid Response Team.--The Secretary of 
Defense shall develop and maintain at least one domestic terrorism rapid 
response team composed of members of the Armed Forces and employees of 
the Department of Defense who are capable of aiding Federal, State, and 
local officials in the detection, neutralization, containment, 
dismantlement, and disposal of weapons of mass destruction containing 
chemical, biological, or related materials.
    (b) Addition to Federal Response Plan.--Not later than December 31, 
1997, the Director of the Federal Emergency Management Agency shall 
develop and incorporate into existing Federal emergency response plans 
and programs prepared under section 611(b) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) 
guidance on the use and deployment of the rapid response teams 
established under this section to respond to emergencies involving 
weapons of mass destruction. The Director shall carry out this 
subsection in consultation with the Secretary of Defense and the heads 
of other Federal agencies involved with the emergency response plans.
SEC. 1415. TESTING <<NOTE: 50 USC 2315.>> OF PREPAREDNESS FOR 
                          EMERGENCIES 
                          INVOLVING NUCLEAR, RADIOLOGICAL, 
                          CHEMICAL, AND BIOLOGICAL WEAPONS.

    (a) Emergencies Involving Chemical or Biological Weapons.--(1) The 
Secretary of Defense shall develop and carry out a program for testing 
and improving the responses of Federal, State, and local agencies to 
emergencies involving biological weapons and related materials and 
emergencies involving chemical 
weapons and related materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, the 
Director of the Federal Emergency Management Agency, the Secretary of 
Energy, and the heads of any other Federal, State, and local government 
agencies that have an expertise or responsibilities relevant to 
emergencies described in paragraph (1).
    (b) Emergencies Involving Nuclear and Radiological Weapons.--(1) The 
Secretary of Energy shall develop and carry out a program for testing 
and improving the responses of Federal, State, and local agencies to 
emergencies involving nuclear and radiological weapons and related 
materials.
    (2) The program shall include exercises to be carried out during 
each of five successive fiscal years beginning with fiscal year 1997.
    (3) In developing and carrying out the program, the Secretary shall 
coordinate with the Director of the Federal Bureau of Investigation, the 
Director of the Federal Emergency Management Agency, the Secretary of 
Defense, and the heads of any other Federal, State, and local government 
agencies that have an exper

[[Page 110 STAT. 2721]]

tise or responsibilities relevant to emergencies described in paragraph 
(1).
    (c) Annual Revisions of Programs.--The official responsible for 
carrying out a program developed under subsection (a) or (b) shall 
revise the program not later than June 1 in each fiscal year covered by 
the program. The revisions shall include adjustments that the official 
determines necessary or appropriate on the basis of the lessons learned 
from the exercise or exercises carried out under the program in the 
fiscal year, including lessons learned regarding coordination problems 
and equipment deficiencies.
    (d) Option To Transfer Responsibility.--(1) The President may 
designate the head of an agency outside the Department of Defense to 
assume the responsibility for carrying out the program developed under 
subsection (a) beginning on or after October 1, 1999, and relieve the 
Secretary of Defense of that responsibility upon the assumption of the 
responsibility by the designated official.
    (2) The President may designate the head of an agency outside the 
Department of Energy to assume the responsibility for carrying out the 
program developed under subsection (b) beginning on or after October 1, 
1999, and relieve the Secretary of Energy of that responsibility upon 
the assumption of the responsibility by the designated official.
    (e) Funding.--Of the total amount authorized to be 
appropriated under section 301, $15,000,000 is available for the
development and execution of the programs required by this section, 
including the participation of State and local agencies in exercises 
carried out under the programs.
SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT 
                          OFFICIALS IN EMERGENCY SITUATIONS 
                          INVOLVING BIOLOGICAL OR CHEMICAL 
                          WEAPONS.

    (a) Assistance Authorized.--(1) Chapter 18 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 382. Emergency situations involving chemical or biological 
                  weapons of mass destruction

    ``(a) In General.--The Secretary of Defense, upon the request of the 
Attorney General, may provide assistance in support of Department of 
Justice activities relating to the enforcement of section 175 or 2332c 
of title 18 during an emergency situation involving a biological or 
chemical weapon of mass destruction. Department of Defense resources, 
including personnel of the Department of Defense, may be used to provide 
such assistance if--
            ``(1) the Secretary of Defense and the Attorney General 
        jointly determine that an emergency situation exists; and
            ``(2) the Secretary of Defense determines that the provision 
        of such assistance will not adversely affect the military 
        preparedness of the United States.

    ``(b) Emergency Situations Covered.--In this section, the term 
`emergency situation involving a biological or chemical weapon of mass 
destruction' means a circumstance involving a biological or chemical 
weapon of mass destruction--
            ``(1) that poses a serious threat to the interests of the 
        United States; and
            ``(2) in which--

[[Page 110 STAT. 2722]]

                    ``(A) civilian expertise and capabilities are not 
                readily available to provide the required assistance to 
                counter the threat immediately posed by the weapon 
                involved;
                    ``(B) special capabilities and expertise of the 
                Department of Defense are necessary and critical to 
                counter the threat posed by the weapon involved; and
                    ``(C) enforcement of section 175 or 2332c of title 
                18 would be seriously impaired if the Department of 
                Defense assistance were not provided.

    ``(c) Forms of Assistance.--The assistance referred to in subsection 
(a) includes the operation of equipment (including equipment made 
available under section 372 of this title) to monitor, contain, disable, 
or dispose of the weapon involved or elements of the weapon.
    ``(d) Regulations.--(1) The Secretary of Defense and the Attorney 
General shall jointly prescribe regulations concerning the types of 
assistance that may be provided under this section. Such regulations 
shall also describe the actions that Department of Defense personnel may 
take in circumstances incident to the provision of assistance under this 
section.
    ``(2)(A) Except as provided in subparagraph (B), the regulations may 
not authorize the following actions:
            ``(i) Arrest.
            ``(ii) Any direct participation in conducting a search for 
        or seizure of evidence related to a violation of section 
        175 or 2332c of title 18.
            ``(iii) Any direct participation in the collection of 
        intelligence for law enforcement purposes.

    ``(B) The regulations may authorize an action described in 
subparagraph (A) to be taken under the following conditions:
            ``(i) The action is considered necessary for the immediate 
        protection of human life, and civilian law enforcement officials 
        are not capable of taking the action.
            ``(ii) The action is otherwise authorized under subsection 
        (c) or under otherwise applicable law.

    ``(e) Reimbursements.--The Secretary of Defense shall require 
reimbursement as a condition for providing assistance under this section 
to the extent required under section 377 of this title.
    ``(f) Delegations of Authority.--(1) Except to the extent otherwise 
provided by the Secretary of Defense, the Deputy Secretary of Defense 
may exercise the authority of the Secretary of Defense under this 
section. The Secretary of Defense may delegate the Secretary's authority 
under this section only to an Under Secretary of Defense or an Assistant 
Secretary of Defense and only if the Under Secretary or Assistant 
Secretary to whom delegated has been designated by the Secretary to act 
for, and to exercise the general powers of, the Secretary.
    ``(2) Except to the extent otherwise provided by the Attorney 
General, the Deputy Attorney General may exercise the authority of the 
Attorney General under this section. The Attorney General may delegate 
that authority only to the Associate Attorney General or an Assistant 
Attorney General and only if the Associate Attorney General or Assistant 
Attorney General to whom delegated has been designated by the Attorney 
General to act for, and to exercise the general powers of, the Attorney 
General.
    ``(g) Relationship to Other Authority.--Nothing in this section 
shall be construed to restrict any executive branch authority

[[Page 110 STAT. 2723]]

regarding use of members of the armed forces or equipment of the 
Department of Defense that was in effect before the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
1997.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``382. Emergency situations involving chemical or biological weapons of 
          mass 
          destruction.''.

    (b) Conforming Amendment to Condition for Providing Equipment and 
Facilities.--Section 372(b)(1) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``The 
requirement for a determination that an item is not reasonably available 
from another source does not apply to assistance provided under section 
382 of this title pursuant to a request of the Attorney General for the 
assistance.''.

    (c) Conforming Amendments Relating to Authority To Request 
Assistance.--(1)(A) Chapter 10 of title 18, United States Code, is 
amended by inserting after section 175 the following new section:
``Sec. 175a. Requests for military assistance to enforce 
                    prohibition in certain emergencies

    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
175 of this title in an emergency situation involving a biological 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in accordance 
with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 175 the 
following new item:

``175a. Requests for military assistance to enforce prohibition in 
           certain emergencies.''.

    (2)(A) The chapter 133B of title 18, United States Code, that 
relates to terrorism is amended by inserting after section 2332c the 
following new section:
``Sec. 2332d. Requests for military assistance to enforce 
                      prohibition in certain emergencies

    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
2332c of this title during an emergency situation involving a chemical 
weapon of mass destruction. The authority to make such a request may be 
exercised by another official of the Department of Justice in accordance 
with section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2332c the 
following new item:

``2332d. Requests for military assistance to enforce prohibition in 
              certain emergencies.''.

    (d) Civilian <<NOTE: President. 50 USC 2316.>> Expertise.--The 
President shall take reasonable measures to reduce the reliance of 
civilian law enforcement officials on Department of Defense resources to 
counter the threat posed by the use or potential use of biological and 
chemical weapons

[[Page 110 STAT. 2724]]

of mass destruction within the United States. The measures shall 
include--
            (1) actions to increase civilian law enforcement expertise 
        to counter such a threat; and
            (2) actions to improve coordination between civilian law 
        enforcement officials and other civilian sources of expertise, 
        within and outside the Federal Government, to counter such a 
        threat.

    (e) Reports.--The <<NOTE: 50 USC 2316.>> President shall submit to 
Congress the following reports:
            (1) Not later than 90 days after the date of the enactment 
        of this Act, a report describing the respective policy functions 
        and operational roles of Federal agencies in countering the 
        threat posed by the use or potential use of biological and 
        chemical weapons of mass destruction within the United States.
            (2) Not later than one year after such date, a report 
        describing--
                    (A) the actions planned to be taken to carry out 
                subsection (d); and
                    (B) the costs of such actions.
            (3) Not later than three years after such date, a report 
        updating the information provided in the reports submitted 
        pursuant to paragraphs (1) and (2), including the measures taken 
        pursuant to subsection (d).

SEC. 1417. <<NOTE: 50 USC 2317.>> RAPID RESPONSE INFORMATION SYSTEM.

    (a) Inventory of Rapid Response Assets.--(1) The head of each 
Federal Response Plan agency shall develop and maintain an inventory of 
physical equipment and assets under the jurisdiction of that agency that 
could be made available to aid State and local officials in search and 
rescue and other disaster management and mitigation efforts associated 
with an emergency involving weapons of mass destruction. The agency head 
shall submit a copy of the inventory, and any updates of the inventory, 
to the Director of the Federal Emergency Management Agency for inclusion 
in the master inventory required under subsection (b).
    (2) Each inventory shall include a separate listing of any equipment 
that is excess to the needs of that agency and could be considered for 
disposal as excess or surplus property for use for response and training 
with regard to emergencies involving weapons of mass destruction.
    (b) Master Inventory.--The Director of the Federal Emergency 
Management Agency shall compile and maintain a 
comprehensive listing of all inventories prepared under subsection (a). 
The first such master list shall be completed not later than December 
31, 1997, and shall be updated annually thereafter.
    (c) Addition to Federal Response Plan.--Not later than December 31, 
1997, the Director of the Federal Emergency Management Agency shall 
develop and incorporate into existing Federal emergency response plans 
and programs prepared under section 611(b) of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(b)) 
guidance on accessing and using the physical equipment and assets 
included in the master list developed under subsection to respond to 
emergencies involving weapons of mass destruction.
    (d) Database on Chemical and Biological Materials.--The Director of 
the Federal Emergency Management Agency, in con

[[Page 110 STAT. 2725]]

sultation with the Secretary of Defense, shall prepare a database on 
chemical and biological agents and munitions characteristics and safety 
precautions for civilian use. The initial design and compilation of the 
database shall be completed not later than December 31, 1997.
    (e) Access to Inventory and Database.--The Director of the Federal 
Emergency Management Agency shall design and maintain a system to give 
Federal, State, and local officials access to the inventory listing and 
database maintained under this section in the event of an emergency 
involving weapons of mass destruction or to prepare and train to respond 
to such
an emergency. The system shall include a secure but accessible emergency 
response hotline to access information and request assistance.

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

SEC. 1421. PROCUREMENT <<NOTE: 50 USC 2331.>> OF DETECTION 
                          EQUIPMENT UNITED STATES BORDER SECURITY.

    Of the amount authorized to be appropriated by section 301, 
$15,000,000 is available for the procurement of--
            (1) equipment capable of detecting the movement of weapons 
        of mass destruction and related materials into the United 
        States;
            (2) equipment capable of interdicting the movement of 
        weapons of mass destruction and related materials into the 
        United States; and
            (3) materials and technologies related to use of equipment 
        described in paragraph (1) or (2).
SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY 
                          ECONOMIC POWERS ACT.

    Section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) is amended--
            (1) in subsection (a), by inserting ``, or attempts to 
        violate,'' after ``violates''; and
            (2) in subsection (b), by inserting ``, or willfully 
        attempts to violate,'' after ``violates''.

SEC. 1423. <<NOTE: 50 USC 2332.>> SENSE OF CONGRESS CONCERNING CRIMINAL 
            PENALTIES.

    (a) Sense of Congress Concerning Inadequacy of Sentencing 
Guidelines.--It is the sense of Congress that the sentencing guidelines 
prescribed by the United States Sentencing Commission for the offenses 
of importation, attempted importation, exportation, and attempted 
exportation of nuclear, biological, and chemical weapons materials 
constitute inadequate punishment for such offenses.
    (b) Urging of Revison to Guidelines.--Congress urges the United 
States Sentencing Commission to revise the relevant sentencing 
guidelines to provide for increased penalties for offenses relating to 
importation, attempted importation, exportation, and attempted 
exportation of nuclear, biological, or chemical weapons or related 
materials or technologies under the following provisions of law:
            (1) Section 11 of the Export Administration Act of 1979 (50 
        U.S.C. App. 2410).

[[Page 110 STAT. 2726]]

            (2) Sections 38 and 40 of the Arms Export Control Act (22 
        U.S.C. 2778 and 2780).
            (3) The International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.).
            (4) Section 309(c) of the Nuclear Non-Proliferation Act of 
        1978 (22 U.S.C. 2156a(c)).

SEC. 1424. <<NOTE: 50 USC 2333.>> INTERNATIONAL BORDER SECURITY.

    (a) Secretary of Defense Responsibility.--The Secretary of Defense, 
in consultation and cooperation with the Commissioner of Customs, shall 
carry out programs for assisting customs officials and border guard 
officials in the independent states of the former Soviet Union, the 
Baltic states, and other countries of Eastern Europe in preventing 
unauthorized transfer and transportation of nuclear, biological, and 
chemical weapons and related materials. Training, expert advice, 
maintenance of equipment, loan of equipment, and audits may be provided 
under or in connection with the programs.
    (b) Funding.--Of the total amount authorized to be appropriated by 
section 301, $15,000,000 is available for carrying out the programs 
referred to in subsection (a).
    (c) Assistance to States of the Former Soviet Union.--Assistance 
under programs referred to in subsection (a) may 
(notwithstanding any provision of law prohibiting the extension of 
foreign assistance to any of the newly independent states of the former 
Soviet Union) be extended to include an independent state of the former 
Soviet Union if the President certifies to Congress that it is in the 
national interest of the United States to extend assistance under this 
section to that state.

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

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN 
                          COOPERATIVE THREAT REDUCTION PROGRAMS ON 
                          ELIMINATION OR TRANSPORTATION OF NUCLEAR 

                          WEAPONS.

    Section 1201(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 U.S.C. 5955 
note) is amended by inserting ``, fissile material suitable for use in 
nuclear weapons,'' after ``other weapons''.

SEC. 1432. <<NOTE: 50 USC 2341.>> ELIMINATION OF PLUTONIUM PRODUCTION.

    (a) Replacement Program.--The Secretary of Energy, in consultation 
with the Secretary of Defense, shall develop a cooperative program with 
the Government of Russia to eliminate the production of weapons grade 
plutonium by modifying or replacing the reactor cores at Tomsk-7 and 
Krasnoyarsk-26 with reactor cores that are less suitable for the 
production of weapons-grade plutonium.
    (b) Program Requirements.--(1) The program shall be designed to 
achieve completion of the modifications or replacements of the reactor 
cores within three years after the modification or replacement 
activities under the program are begun.

[[Page 110 STAT. 2727]]

    (2) The plan for the program shall--
            (A) specify--
                    (i) successive steps for the modification or 
                replacement of the reactor cores; and
                    (ii) clearly defined milestones to be achieved; and
            (B) include estimates of the costs of the program.

    (c) Submission of Program Plan to Congress.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress--
            (1) a plan for the program under subsection (a);
            (2) an estimate of the United States funding that is 
        necessary for carrying out the activities under the program for 
        each fiscal year covered by the program; and
            (3) a comparison of the benefits of the program with the 
        benefits of other nonproliferation programs.

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

SEC. 1441. <<NOTE: 50 USC 2351.>> NATIONAL COORDINATOR ON 
            NONPROLIFERATION.

    (a) Designation <<NOTE: President.>> of Position.--The President 
shall designate an individual to serve in the Executive Office of the 
President as the National Coordinator for Nonproliferation Matters.

    (b) Duties.--The Coordinator, under the direction of the National 
Security Council, shall advise and assist the 
President by--
            (1) advising the President on nonproliferation of weapons of 
        mass destruction, including issues related to terrorism, arms 
        control, and international organized crime;
            (2) chairing the Committee on Nonproliferation established 
        under section 1342; and
            (3) taking such actions as are necessary to ensure that 
        there is appropriate emphasis in, cooperation on, and 
        coordination of, nonproliferation research efforts of the United 
        States, including activities of Federal agencies as well as 
        activities of contractors funded by the Federal Government.

    (c) Allocation of Funds.--Of the total amount authorized to be 
appropriated under section 301, $2,000,000 is available to the 
Department of Defense for carrying out research referred to in 
subsection (b)(3).
SEC. 1442. NATIONAL <<NOTE: 50 USC 2352.>> SECURITY COUNCIL 
                          COMMITTEE ON NONPROLIFERATION.

    (a) Establishment.--The Committee on Nonproliferation (in this 
section referred to as the ``Committee'') is established as a committee 
of the National Security Council.
    (b) Membership.--(1) The Committee shall be composed of 
representatives of the following:
            (A) The Secretary of State.
            (B) The Secretary of Defense.
            (C) The Director of Central Intelligence.
            (D) The Attorney General.
            (E) The Secretary of Energy.

[[Page 110 STAT. 2728]]

            (F) The Administrator of the Federal Emergency Management 
        Agency.
            (G) The Secretary of the Treasury.
            (H) The Secretary of Commerce.
            (I) Such other members as the President may designate.

    (2) The National Coordinator for Nonproliferation Matters shall 
chair the Committee on Nonproliferation.
    (c) Responsibilities.--The Committee has the following 
responsibilities:
            (1) To review and coordinate Federal programs, policies, and 
        directives relating to the proliferation of weapons of mass 
        destruction and related materials and technologies, including 
        matters relating to terrorism and international organized crime.
            (2) To make recommendations through the National Security 
        Council to the President regarding the following:
                    (A) Integrated national policies for countering the 
                threats posed by weapons of mass destruction.
                    (B) Options for integrating Federal agency budgets 
                for countering such threats.
                    (C) Means to ensure that Federal, State, and local 
                governments have adequate capabilities to manage crises 
                involving nuclear, radiological, biological, or chemical 
                weapons or related materials or technologies, and to 
                manage the consequences of a use of such weapon or 
                related materials or technologies, and that use of those 
                capabilities is coordinated.
                    (D) Means to ensure appropriate cooperation on, and 
                coordination of, the following:
                          (i) Preventing the smuggling of weapons of 
                      mass destruction and related materials and 
                      technologies.
                          (ii) Promoting domestic and international law 
                      enforcement efforts against proliferation-related 
                      efforts.
                          (iii) Countering the involvement of organized 
                      crime groups in proliferation-related activities.
                          (iv) Safeguarding weapons of mass destruction 
                      materials and related technologies.
                          (v) Improving coordination and cooperation 
                      among intelligence activities, law enforcement, 
                      and the Departments of Defense, State, Commerce, 
                      and Energy in support of nonproliferation and 
                      counterproliferation efforts.
                          (vi) Improving export controls over materials 
                      and technologies that can contribute to the 
                      acquisition of weapons of mass destruction.
                          (vii) Reducing pr